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 introduces Chapter 491 in the Health and Safety Code, defining key terms such as "cannabis," "cannabis establishment," and "cannabis grower." The bill allows adults aged 21 and older to possess and use specified amounts of cannabis, while also providing legal protections for individuals engaging in authorized conduct. It mandates the Texas Commission of Licensing and Regulation to create rules for administration and enforcement, including standards for testing, packaging, and labeling of cannabis products, and prohibits activities like operating a vehicle while intoxicated.

Additionally, the bill outlines licensing requirements for cannabis growers and establishments, including qualifications, application processes, and criminal history checks. It introduces provisions for local government assistance payments related to cannabis regulation enforcement and amends various sections of the Health and Safety Code to clarify exemptions and penalties, particularly regarding sales to minors. The bill also imposes a new 10 percent sales tax on cannabis products, with proceeds allocated to cannabis regulation accounts. The Texas Commission of Licensing and Regulation is tasked with implementing these regulations by July 1, 2026, while ensuring that tax liabilities prior to the bill's effective date of September 1, 2025, remain unaffected.

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