House Bill No. 1208 establishes a comprehensive regulatory framework for cannabis and cannabis products in Texas by creating Chapter 491 in the Health and Safety Code. The bill defines key terms such as "cannabis," "cannabis establishment," and "cannabis grower," and allows adults aged 21 and older to use, possess, and transfer specified amounts of cannabis. It mandates the licensing of cannabis growers, establishments, transporters, and testing facilities, while requiring the Texas Commission of Licensing and Regulation to adopt necessary rules and fees for administration. The bill also provides legal protections for individuals engaging in authorized cannabis-related activities and sets safety standards for testing, packaging, and labeling of cannabis products.

Additionally, the bill introduces new provisions for local government assistance in regulating cannabis establishments, including a framework for reimbursement based on enforcement costs. It outlines requirements for local authorization, inspections, and penalties for selling cannabis products to minors. The bill also amends the Tax Code to impose a 10 percent sales tax on cannabis sales, with proceeds allocated to cannabis regulation and oversight accounts. The Texas Commission of Licensing and Regulation is tasked with implementing the new regulations by July 1, 2026, and the Texas Department of Licensing and Regulation will begin licensing cannabis-related businesses by November 1, 2026. The legislation aims to create a regulated and taxed cannabis industry while ensuring compliance with health and safety standards.

Statutes affected:
Introduced: Agriculture Code 122.103, Government Code 411.093, Health and Safety Code 443.202, Health and Safety Code 443.2025, Health and Safety Code 481.062, Health and Safety Code 481.111, Occupations Code 551.004, Tax Code 151.313, Tax Code 491.0001, Tax Code 151.316, Subtitle E, Title , Tax Code 491.0001 (Health and Safety Code 481, Occupations Code 551, Agriculture Code 122, Government Code 411, Tax Code 151, Subtitle E, Title , Tax Code 491, Tax Code 491, Health and Safety Code 443)