H.B. No. 169, introduced by Gonzlez of Dallas, seeks to establish a comprehensive regulatory framework for cannabis and cannabis products in Texas by creating a new Chapter 494 in the Health and Safety Code. The bill defines key terms such as "cannabis," "cannabis establishment," and "cannabis grower," and outlines the requirements for obtaining occupational licenses, including fees and the establishment of criminal offenses related to cannabis activities. It permits adults aged 21 and older to possess and use limited amounts of cannabis without remuneration, while also imposing regulations on cannabis establishments and secure transporters. The Texas Commission of Licensing and Regulation is designated to implement rules and standards for cannabis operations, including safety regulations and testing requirements for cannabis products.

Additionally, the bill introduces provisions to prevent conflicts of interest within the cannabis industry and establishes a local share account to assist qualifying local governments in regulating cannabis establishments. It mandates local authorization for cannabis operations and allows local governments to adopt their own regulations, while emphasizing the prohibition of cannabis sales to minors. The bill also amends sections of the Health and Safety Code and the Tax Code, imposing a 10 percent sales tax on cannabis products, with proceeds allocated to regulatory accounts. The Texas Commission of Licensing and Regulation is tasked with adopting implementation rules by July 1, 2026, and the licensing of cannabis-related entities will commence by November 1, 2026. The act is set to take effect 91 days after the end of the legislative session.

Statutes affected:
Introduced: Agriculture Code 122.103, 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, Subtitle E, Title , Tax Code 494.0001 (Health and Safety Code 481, Health and Safety Code 443, Agriculture Code 122, Tax Code 151, Tax Code 494, Subtitle E, Title , Tax Code 494, Occupations Code 551)