H.B. No. 1208 establishes a comprehensive regulatory framework for the cultivation, manufacture, processing, distribution, sale, testing, transportation, delivery, transfer, possession, use, and taxation of cannabis and cannabis products in Texas. It introduces Chapter 491 to the Health and Safety Code, defining key terms such as "cannabis," "cannabis establishment," and "cannabis grower." The bill outlines authorized conduct for adults, including possession and transfer of specified amounts of cannabis, while providing legal protections for individuals engaging in these activities. It mandates the Texas Commission of Licensing and Regulation to adopt rules for administration and enforcement, including fees to cover administrative costs, and sets requirements for testing facilities, packaging, labeling, and security measures. The legislation also prohibits cannabis use in certain public spaces and establishes penalties for violations.

Additionally, the bill introduces amendments to existing laws regarding cannabis regulation and local government assistance, establishing a framework for cannabis establishment regulation assistance payments to qualifying local governments. It clarifies definitions and requirements related to cannabis operations, including prohibitions on sales to minors and the necessity for local authorization for cannabis establishments. The bill imposes a new 10 percent sales tax on cannabis and cannabis products, alongside existing taxes, and mandates the Texas Commission of Licensing and Regulation to implement the new regulations by July 1, 2026. The provisions of this Act are set to take effect on September 1, 2025, ensuring a structured approach to cannabis regulation while supporting local governments in enforcement efforts.

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 443, Subtitle E, Title , Tax Code 491, Government Code 411, Tax Code 491, Agriculture Code 122, Occupations Code 551, Tax Code 151, Health and Safety Code 481)