House Bill 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 creates Chapter 491 in the Health and Safety Code, defining key terms such as "cannabis," "cannabis establishment," and "cannabis grower." The bill grants adults aged 21 and older the right to use, possess, and transfer specified amounts of cannabis while outlining the responsibilities of licensed entities in the cannabis industry. It mandates the Texas Commission of Licensing and Regulation to adopt rules for administration and enforcement, including fee imposition, and provides legal protections for individuals engaging in authorized cannabis-related activities.

The bill also introduces new provisions for the regulation of cannabis establishments, including secure transportation standards and conflict of interest regulations for those involved in cannabis law enforcement. It sets requirements for obtaining and maintaining cannabis licenses, mandates age verification for customers, and establishes accounts for funding regulation and oversight. Additionally, the bill amends existing laws to provide local governments with assistance payments for enforcing cannabis regulations and outlines penalties for selling cannabis products to minors. It imposes a 10 percent sales tax on cannabis products, specifies the distribution of tax proceeds, and clarifies that it does not retroactively affect tax liabilities prior to its effective date of September 1, 2025.

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