S.B. No. 31, known as the Texas Regulation of Cannabis Act, establishes a comprehensive regulatory framework for the cultivation, manufacture, distribution, sale, and taxation of cannabis and cannabis products in Texas. The bill mandates a joint study by relevant state departments to explore the creation 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 defines key terms related to cannabis and outlines the responsibilities of the commission, including licensing cannabis-related businesses and ensuring compliance with safety and quality standards. The bill also sets forth guidelines for secure transportation, age verification for customers, and criminal history checks for license applicants.

Additionally, the legislation imposes a 10% sales tax on cannabis products, with proceeds allocated to regulatory and oversight accounts. It allows for local governments to adopt regulations consistent with the bill while ensuring they do not unreasonably restrict cannabis operations. The bill provides a pathway for expunging certain cannabis-related offenses and clarifies that cannabis is not classified as a drug for tax purposes. The Texas Alcoholic Beverage Commission is tasked with implementing the new regulations by July 1, 2026, and beginning the licensing process by November 1, 2026. Overall, S.B. No. 31 aims to create a regulated cannabis industry in Texas while prioritizing public safety and health.

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