The Texas Regulation of Cannabis Act establishes a comprehensive legal framework for the cultivation, manufacture, distribution, and sale of cannabis and cannabis products. It introduces Chapter 491 to the Health and Safety Code, defining key terms and outlining authorized conduct for adults, such as possessing up to 2 ounces of cannabis and cultivating up to 12 plants for personal use. The bill also provides legal protections for individuals engaging in these activities, ensuring they are not subject to arrest or prosecution. Local governments are granted the authority to regulate cannabis establishments while adhering to certain limitations, and the Texas Commission of Licensing and Regulation is tasked with overseeing the implementation and enforcement of the new regulations.

The bill includes provisions for licensing cannabis-related businesses, requiring fees to be deposited into a Cannabis Regulation Account, and mandates that employees dispensing cannabis obtain a registration. It establishes a cannabis sales tax of 20% for consumer sales and 15% for sales from growers to establishments, with proceeds allocated to various accounts, including those for veterans' assistance and chemical dependency treatment. The Texas Commission of Licensing and Regulation must adopt rules for these regulations by July 1, 2026, and the licensing process for cannabis entities is set to begin by November 1, 2026. The changes will take effect on September 1, 2025, without retroactive impact on tax liabilities incurred prior to that date.

Statutes affected:
Introduced: Agriculture Code 122.103, Government Code 411.0891, Government Code 434.017, Health and Safety Code 166.0005, 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 (Government Code 434, Subtitle E, Title , Tax Code 491, Tax Code 151, Tax Code 491, Health and Safety Code 481, Health and Safety Code 166, Occupations Code 551, Government Code 411, Agriculture Code 122, Health and Safety Code 443)