The Texas Regulation of Cannabis Act establishes a comprehensive legal framework for the cultivation, manufacture, distribution, and taxation of cannabis and cannabis products in Texas. It introduces Chapter 491 to the Health and Safety Code, defining key terms and allowing adults aged 21 and older to possess and use cannabis within specified limits, cultivate a limited number of plants for personal use, and transfer cannabis without remuneration under certain conditions. The bill mandates the Texas Commission of Licensing and Regulation to create rules for the administration and enforcement of these regulations, including licensing requirements for cannabis establishments and the imposition of fees to cover regulatory costs. It also outlines restrictions on cannabis consumption in public areas and establishes penalties for unauthorized conduct.

Additionally, the bill amends various sections of the Texas Health and Safety Code and Tax Code, creating a new chapter in the Tax Code that imposes a sales tax on cannabis products, with rates set at 20% for sales to consumers and 15% for sales from growers to establishments. It establishes a Cannabis Regulation Account funded by fees and tax proceeds, which will be used exclusively for cannabis regulation implementation. The legislation includes provisions for local governments to regulate cannabis establishments while preventing unreasonable restrictions, and it outlines a licensing process for cannabis-related businesses to be implemented by November 1, 2026. Overall, the bill aims to create a structured approach to cannabis regulation and taxation in Texas, ensuring compliance and oversight within the industry.

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 411, Health and Safety Code 166, Tax Code 151, Occupations Code 551, Agriculture Code 122, Health and Safety Code 481, Government Code 434, Subtitle E, Title , Tax Code 491, Tax Code 491, Health and Safety Code 443)