SB 31 — Relating to the regulation of the cultivation, manufacture, processing, distribution, sale, testing, transportation, delivery, transfer, possession, use, and taxation of cannabis and cannabis products and the local regulation of licensed cannabis growers, cannabis establishments, cannabis testing facilities, and cannabis secure transporters; providing for expunction of records relating to certain decriminalized conduct; authorizing the imposition of fees; requiring an occupational license; creating a criminal offense; imposing a tax.

Bill Text

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This bill amends 9 section(s) of the Texas statutes: Section 122.103(c), Agriculture Code, Section 443.202(a), Health and Safety Code, Section 443.2025(a), Health and Safety Code, Section 481.062, Health and Safety Code, Section 481.111, Health and Safety Code, Section 551.004, Occupations Code.

• CHAPTER 494. REGULATION OF CANNABIS SUBCHAPTER A. GENERAL PROVISIONS Sec. 494.0001. DEFINITIONS. In this chapter: (1) "Adult" means an individual 21 years of age or older. (2) "Cannabis" means the plant Cannabis sativa L., whether growing or not, the seeds of that plant, and every compound, manufacture, salt, derivative, mixture, or preparation of that plant or its seeds. The term includes cannabis concentrate. The term does not include: (A) the mature stalks of the plant or fiber produced from the stalks; (B) oil or cake made from the seeds of the plant; (C) a compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks, fiber, oil, or cake; (D) the sterilized seeds of the plant that are incapable of beginning germination; (E) hemp, as that term is defined by Section 121.001, Agriculture Code; or (F) a consumable hemp product, as that term is defined by Section 443.001. (3) "Cannabis beverage" means a beverage that: (A) contains cannabis or one or more cannabis-derived cannabinoids; (B) does not contain any amount of synthetic cannabinoids; (C) does not contain or is not mixed with alcohol, caffeine, tobacco, nicotine, kratom, kava, psychoactive mushrooms, or a derivative of any of those items; and (D) contains 10 milligrams or less of delta-9 tetrahydrocannabinol. (4) "Cannabis concentrate" means the resin extracted from a part of the plant Cannabis sativa L. or a compound, manufacture, salt, derivative, mixture, or preparation of the resin. (5) "Cannabis establishment" means an entity licensed under this chapter to process and dispense cannabis and cannabis products, including cannabis beverages, to an adult. The term includes: (A) an entity that processes cannabis or manufactures cannabis products or cannabis beverages; and (B) an entity that sells cannabis or cannabis products, including cannabis beverages, at retail. (6) "Cannabis grower" means an entity licensed to cultivate cannabis for sale and distribution to a cannabis establishment. (7) "Cannabis product" means a product that contains cannabis or one or more cannabis-derived cannabinoids and is intended for use or consumption by humans, including as an edible product or as a topical product, ointment, oil, or tincture. The term includes: (A) cannabis beverages; and (B) products that consist of cannabis and other ingredients. (8) "Cannabis-related drug paraphernalia" means equipment, a product, or material that is used or intended for use in: (A) planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, or containing cannabis or a cannabis product; or (B) introducing cannabis or a cannabis product into the human body. (9) "Cannabis secure transporter" means an entity licensed under this chapter to transport cannabis from a cannabis grower to a cannabis establishment. (10) "Cannabis testing facility" means an entity licensed under this chapter to analyze the safety and potency of cannabis and cannabis products. (11) "Commission" means the Texas Alcoholic Beverage Commission. (12) "Cultivate" means to propagate, breed, grow, harvest, dry, cure, or separate parts of the cannabis plant by manual or mechanical means. (13) "Marihuana" has the meaning assigned by Section 481.002. (14) "Process" means to separate or otherwise prepare parts of the cannabis plant and to compound, blend, extract, infuse, or otherwise make or prepare cannabis concentrate or cannabis products. (15) "Synthetic cannabinoid" means a man-made chemical substance created by using chemical synthesis, chemical modification, or chemical conversion that is intended to mimic a phytocannabinoid or is intended to or able to interact with the endocannabinoid system. The term does not include delta-9 tetrahydrocannabinol produced through the conversion of chemicals naturally occurring. SUBCHAPTER B. PROTECTIONS FROM LEGAL ACTION RELATED TO CANNABIS Sec. 494.0051

  amended

• CHAPTER 166. TAX ON CANNABIS AND RELATED PRODUCTS Sec. 166.0001. DEFINITIONS. In this chapter, "cannabis" and "cannabis product" have the meanings assigned by Section 494.0001, Health and Safety Code. Sec. 166.0002. CANNABIS SALES TAX. (a) A tax is imposed on each sale in this state of cannabis and cannabis products. (b) The tax rate is 10 percent of the sales price of cannabis or a cannabis product. Sec. 166.0003. APPLICATION OF OTHER PROVISIONS OF CODE. (a) The tax imposed under this chapter is in addition to the taxes imposed under Chapter 151. (b) Except as provided by this chapter: (1) the tax imposed under this chapter is administered, imposed, collected, and enforced in the same manner as the taxes under Chapter 151 are administered, imposed, collected, and enforced; and (2) the provisions of Chapter 151 applicable to the sales tax imposed under Subchapter C, Chapter 151, apply to the tax imposed under this chapter. Sec. 166.0004. DISPOSITION OF PROCEEDS. The comptroller shall deposit the proceeds from the tax imposed under this chapter as follows: (1) 20 percent to the credit of the cannabis regulation account under Section 494.0251, Health and Safety Code; (2) 20 percent to the credit of the cannabis establishment regulation and oversight local share account under Section 494.0253, Health and Safety Code; (3) 10 percent to the credit of the cannabis testing and quality control account under Section 494.0252, Health and Safety Code; (4) five percent to the credit of the Compassionate Use Program established under Chapter 487, Health and Safety Code, for marketing and increasing awareness of the program; and (5) the remainder to the credit of the discretionary services program support account under Section 494.0254, Health and Safety Code.

  amended

• Art. 55A.007. CERTAIN DECRIMINALIZED CANNABIS-RELATED OFFENSES. A person to whom this subchapter applies is entitled to the expunction of all records and files related to the arrest, including, as applicable, any records and files related to a conviction of the offense, if: (1) the person is convicted of or placed on deferred adjudication community supervision under Subchapter C, Chapter 42A, for the offense for which the person was arrested; (2) the person was arrested for an offense under Section 481.116, 481.121, or 481.125, Health and Safety Code, that: (A) was committed before December 1, 2025; and (B) involved only conduct that would have been authorized under Section 494.0051 of that code if that conduct had occurred on or after December 1, 2025; and (3) as applicable: (A) the person's sentence, including any term of confinement or period of community supervision imposed and payment of all fines and costs imposed, is finally discharged; or (B) the person received a dismissal and discharge under Article 42A.111 for the offense.

  amended

• (a) (b) A person who is entitled to expunction of records and files under Article 55A.007 may file an ex parte petition for expunction in the court that convicted the person or placed the person on deferred adjudication community supervision.

  amended

• 55A.251 → 55A.251(a)

  amended

• Art. 55A.3565. RETENTION AND INSPECTION OF CERTAIN RECORDS AFTER EXPUNCTION OF DECRIMINALIZED CANNABIS-RELATED OFFENSE. (a) This article applies only to records and files for which an expunction order has been issued on the basis of an entitlement under Article 55A.007. (b) Notwithstanding any other law, the law enforcement agency, the prosecuting attorney responsible for investigating the offense for which the expunction order was issued, and the clerk of the applicable court may retain the records and files relating to the arrest for the offense, including any records and files related to a conviction of the offense, to be used only: (1) for the investigation or prosecution of another offense arising out of the same transaction for which the person who is the subject of the order was arrested; or (2) by the office of the governor in determining whether to issue a pardon or commute a sentence. (c) The records and files for which the expunction order was issued are not open for inspection by anyone, except that the records and files are open for inspection by the person who is the subject of the order or for the purposes described by Subsection (b).

  amended

• Section 122.103(c), Agriculture Code

  or 494

  amended

• and Chapter 494, Health and Safety Code and Chapter 494, Health and Safety Code

  amended

• Section 443.202(a), Health and Safety Code

  or cannabis regulated under Chapter 494

  amended

• Section 443.2025(a), Health and Safety Code

  or cannabis regulated under Chapter 494

  amended

• Section 481.062, Health and Safety Code

  without registering with the Federal Drug Enforcement Administration who is registered with the Federal Drug Enforcement Administration and or → are not required to register and registered ; (7) a cannabis grower, cannabis establishment, cannabis secure transporter, or cannabis testing facility licensed under Chapter 494 that possesses cannabis or cannabis products; or (8) a person who possesses cannabis or cannabis products in accordance with Chapter 494 (b) In this section, "cannabis" and "cannabis product" have the meanings assigned to those terms by Section 494.0001.

  amended

• Section 481.111, Health and Safety Code

  (g) Sections 481.113, 481.116, 481.120, 481.121, and 481.125 do not apply to a person who engages in the acquisition, possession, production, processing, cultivation, delivery, transportation, disposal, transfer, or use of a raw material used in or by-product created by the production or cultivation of cannabis or cannabis products if the conduct is expressly authorized by Subchapter B, Chapter 494. (h) For purposes of Subsection (g), "cannabis" and "cannabis product" have the meanings assigned to those terms by Section 494.0001.

  amended

• Section 551.004, Occupations Code

  or , as defined by Section 487.001, Health and Safety Code, → ; (6) a cannabis grower, cannabis establishment, cannabis secure transporter, or cannabis testing facility licensed under Chapter 494, Health and Safety Code, that cultivates, manufactures, processes, distributes, delivers sells, tests, transports, or dispenses cannabis or a cannabis product as authorized by that chapter; or (7) a person who transfers cannabis without remuneration as authorized by Section 494.0051, Health and Safety Code (a-1) For purposes of this section: (1) "Cannabis," "cannabis establishment," "cannabis grower," "cannabis product," "cannabis secure transporter," and "cannabis testing facility" have the meanings assigned by Section 494.0001, Health and Safety Code. (2) "Dispensing organization" and "low-THC cannabis" have the meanings assigned by Section 487.001, Health and Safety Code.

  amended

• Section 151.313(c), Tax Code

  and → ; and (5) is not cannabis or a cannabis product, as those terms are defined by Section 494.0001, Health and Safety Code

  amended

• Section 151.314, Tax Code

  (i) The exemption provided by Subsection (a) does not apply to a cannabis product, as defined by Section 494.0001, Health and Safety Code.

  amended

• Section 151.316, Tax Code

  (e) The exemption provided by Subsection (a)(5) does not apply to cannabis, as defined by Section 494.0001, Health and Safety Code.

  amended

Action History

1. August 15, 2025

   Filed

2. August 15, 2025

   Received by the Secretary of the Senate

Sponsors

• Borris Miles · Primary
• José Menéndez · Primary
• Roland Gutierrez · Primary
• Sarah Eckhardt · Primary
• César Blanco · Primary
• Carol Alvarado · Primary
• Nathan Johnson · Primary
• Molly Cook · Primary

Subjects