The Texas Regulation of Cannabis Act, H.B. No. 5307, establishes a comprehensive legal framework for the cultivation, distribution, and regulation 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 cultivate cannabis under specific conditions, such as a limit of 12 plants and 2.5 ounces of cannabis. The bill also provides legal protections for individuals engaging in authorized cannabis activities and establishes the Texas Commission of Licensing and Regulation as the governing body responsible for overseeing the industry, including the adoption of necessary rules and fee structures.

Additionally, the bill creates new accounts for cannabis regulation and quality control, imposes a 10% sales tax on cannabis products, and includes provisions for the expunction of records related to certain cannabis offenses. It mandates that the commission implement regulations for licensing, testing, and packaging of cannabis products, while ensuring compliance with safety standards. The legislation also emphasizes conflict of interest policies for industry participants and requires annual reporting on licensing and financial activities. The bill is set to take effect on September 1, 2025, with the licensing process for cannabis entities beginning by November 1, 2026.

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