S.B. No. 31, known as the Texas Regulation of Cannabis Act, seeks to create a comprehensive legal framework for the cultivation, sale, and regulation of cannabis and cannabis products in Texas. The bill mandates a joint study by the Department of Public Safety, the Health and Human Services Commission, and the Texas Alcoholic Beverage Commission to explore the establishment of a new commission for overseeing cannabis regulations, with findings due by December 1, 2026. It introduces a new chapter in the Health and Safety Code that includes definitions related to cannabis and its products, provisions for personal use, and protections for individuals engaging in authorized cannabis activities. Adults aged 21 and older will be allowed to possess and use cannabis within specified limits, cultivate a limited number of plants, and transfer cannabis without remuneration under certain conditions.

The legislation also outlines the responsibilities of licensed cannabis growers, establishments, and transporters, while prohibiting activities such as operating a vehicle while intoxicated. Key provisions include restrictions on retail sales near certain facilities, regulations on pesticide use, and requirements for packaging to prevent appeal to minors. The bill imposes a 10% sales tax on cannabis products, with proceeds allocated to regulatory and support accounts, and allows for the expunction of records related to certain decriminalized cannabis offenses. Additionally, it amends various sections of the Occupations Code and Tax Code to incorporate new definitions and regulations, ensuring that cannabis is not classified as a drug or medicine for tax purposes. The Texas Alcoholic Beverage Commission is tasked with implementing these regulations by July 1, 2026, and beginning the licensing process by November 1, 2026.

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