S.B. No. 31, known as the Texas Regulation of Cannabis Act, seeks to create a comprehensive regulatory framework for the cultivation, manufacture, distribution, and sale of cannabis and cannabis products in Texas. The bill establishes a new commission responsible for overseeing and enforcing cannabis laws, with a requirement for a study to be conducted by various state departments by December 1, 2026. It introduces definitions for terms related to cannabis, such as "cannabis beverage" and "cannabis grower," and allows adults aged 21 and older to possess and use cannabis under specific conditions, while also outlining legal protections for individuals engaged in authorized cannabis activities. The bill prohibits public consumption and restricts sales near schools and daycare centers, ensuring public safety and compliance with local regulations.

Additionally, the bill amends various sections of the Occupations Code and Tax Code to incorporate new definitions and regulations regarding cannabis. It mandates that cannabis establishments verify the age of purchasers, imposes a 10% sales tax on cannabis products, and provides a pathway for the expunction of records related to certain decriminalized cannabis offenses. The Texas Alcoholic Beverage Commission is tasked with implementing the new regulations by July 1, 2026, and licensing cannabis-related entities by November 1, 2026. The bill also clarifies that certain tax exemptions do not apply to cannabis, ensuring distinct treatment for taxation purposes. Overall, the legislation aims to regulate the cannabis industry while ensuring public safety and compliance with existing laws.

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 (Agriculture Code 122, Government Code 411, Tax Code 494, Occupations Code 551, Health and Safety Code 481, Health and Safety Code 443, Tax Code 151)