The Texas Regulation of Cannabis Act establishes a comprehensive legal framework for the cultivation, manufacture, distribution, sale, and taxation of cannabis and cannabis products. It creates a new commission responsible for overseeing and enforcing cannabis laws, with a study to be conducted by relevant state departments to be submitted to the legislature by December 1, 2026. The bill allows adults aged 21 and older to possess and use cannabis within specified limits and includes provisions for the expunction of records related to certain decriminalized conduct. It also outlines licensing requirements for cannabis establishments, growers, and testing facilities, emphasizing compliance with safety and quality standards.

Key provisions of the bill include a 10% sales tax on cannabis products, with proceeds allocated to support cannabis regulation and quality control. The legislation mandates that cannabis establishments verify the age of purchasers and prohibits the sale of cannabis within 300 feet of certain facilities. It also allows local governments to regulate cannabis establishments while ensuring they do not impose unreasonable restrictions. The bill amends various sections of the Occupations Code and Tax Code to incorporate new definitions and tax exemptions related to cannabis, and it requires the Texas Alcoholic Beverage Commission to implement the new regulations by July 1, 2026, with licensing to begin by November 1, 2026. The Act is set to take effect on December 1, 2025.

Statutes affected:
Introduced: Agriculture Code 122.103, Government Code 411.091, 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 494.0001, Tax Code 151.316 (Tax Code 151, Government Code 411, Agriculture Code 122, Health and Safety Code 481, Health and Safety Code 443, Tax Code 494, Occupations Code 551)