H.B. No. 169, introduced by Gonzlez of Dallas, establishes 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 responsibilities of the Texas Department of Licensing and Regulation and the Texas Commission of Licensing and Regulation in enforcing these regulations. It authorizes the imposition of fees for licenses and establishes a cannabis regulation account to manage these funds. The bill also provides legal protections for adults using cannabis, detailing permissible conduct for cannabis growers and establishments while prohibiting actions like operating a vehicle while intoxicated.

Additionally, the bill mandates strict regulations for cannabis testing facilities, secure transporters, and establishments, including packaging and labeling requirements to ensure safety. It introduces provisions to prevent conflicts of interest among commission members and license holders, and requires annual reporting on licensing activities. Local governments are given the authority to regulate cannabis operations, with provisions for public health inspections and penalties for sales to minors. The bill also imposes a 10 percent sales tax on cannabis products, with proceeds allocated to regulatory accounts, and sets timelines for the implementation of these regulations, ensuring that the cannabis industry operates within a structured and compliant framework.

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 (Agriculture Code 122, Subtitle E, Title , Tax Code 494, Tax Code 494, Occupations Code 551, Health and Safety Code 481, Health and Safety Code 443, Tax Code 151)