Fort Worth staff urges pharmacy-style rules for medical cannabis pickup sites, proposes separate industrial zoning for growers

Stephanie Scott Sims, assistant director of development services for the City of Fort Worth, told the Infrastructure and Growth Committee that the Texas Compassionate Use Program allows DPS-licensed dispensing organizations to operate small satellite pickup sites that function like pharmacies.

“We may wish to amend the definition of a pharmacy to include these compassionate use satellite locations and continue to allow them by right in all commercial and industrial zoning districts,” Stephanie Scott Sims said, framing staff’s recommendation to treat satellite dispensaries like pharmacy pickup locations while defining cultivation, processing and packaging as separate industrial uses.

Under 2025’s HB 46, the state must issue up to 15 licenses for dispensing organizations. Sims said three organizations have operated under earlier rules and two already have pickup locations in Fort Worth that were grandfathered when the statute changed. Sims told the committee that satellite locations are limited by statute to one per licensee per public-health region until a licensee has a satellite in each of the 11 regions.

Trey Qualls of the city attorney’s office confirmed that previously operating pickup locations are typically grandfathered. “Those pickup locations that previously existed prior to the law change Sept. 1 are grandfathered as satellite locations,” Qualls said, and the Department of Public Safety handles licensing and many of the operational regulations.

Council members questioned how many satellite sites could ultimately appear in neighborhoods. “We could have, you know, hundreds and thousands of these across the city at some point,” Councilman Blaylock said, urging the city to consider whether neighborhood-commercial zoning should permit them by right. Sims and staff said they had found few Texas cities with separate land-use rules; Tyler was an exception, treating production and related activities as industrial.

Staff recommended two changes: continue to treat satellite pickup sites like pharmacies for zoning purposes, and create a distinct “compassionate use” industrial land-use category limited to industrial districts for cultivation, extraction, testing, packaging and distribution. That approach, staff said, would allow small storefront pickup sites in commercial areas while keeping more intensive production and truck-servicing activities in industrial zones.

Committee members asked whether the city can add local limits, such as distance buffers; staff replied that the city cannot prohibit uses preempted by state law but does retain zoning authority and will research and return with any options the city may lawfully adopt. Staff also disclosed one pending building-permit application for a dispensary along Camp Bowie that prompted neighborhood concern.

The committee directed staff to bring the recommended zoning amendment to full city council for adoption of the separate industrial use and asked staff to present options for potentially more restrictive local regulations. Staff agreed to consult with the city attorney’s office and to report back to council.

The committee approved the Nov. 11 minutes earlier in the meeting by voice vote. The Chair adjourned the meeting after the dispensary discussion concluded.