This SO thread seems to indicate that it does but the links to documentation in the same thread says:
Unless otherwise noted, all Location API methods require the Manifest.permission.ACCESS_COARSE_LOCATION or Manifest.permission.ACCESS_FINE_LOCATION permissions. If your application only has the coarse permission then providers will still return location results, but the exact location will be obfuscated to a coarse level of accuracy.
Which makes me think that Google added coarse location support for the GPS provider. However, I am getting this error:
Caused by: java.lang.SecurityException: "gps" location provider requires ACCESS_FINE_LOCATION permission.
Of course the best way forward would be to use the fused location provider API but until then I think the documentation should be clearer about this? Mostly looking for an updated answer.