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Read. Follow. Verify.Texas House Bill 195 Establishes Comprehensive Legal Framework and 10% Sales Tax for Cannabis
Last action · July 24, 2025: FiledSponsor: Jessica González
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What This Bill Proposed
Adults age 21 and older are authorized to possess, use, and transport up to 2.5 ounces of cannabis and up to 15 grams of , and a 10 percent state sales tax is imposed on cannabis and cannabis products. The Texas Commission of Licensing and Regulation is required to adopt implementation rules by July 1, 2026, and the Texas Department of Licensing and Regulation must begin issuing licenses for growers, establishments, transporters, and testing facilities by November 1, 2026.
Residents gain legal protections to possess and transfer limited amounts of cannabis for personal use without facing arrest or prosecution, while commercial entities must obtain specialized licenses and local authorization to operate.
- Texas previously maintained strict criminal prohibitions on cannabis possession and sale, with limited exceptions under the state's Compassionate Use Act for low-THC cannabis. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Adults 21 and older
Adults gain legal authorization to possess, use, transport, and transfer limited amounts of cannabis without facing criminal penalties or civil forfeiture.
Cannabis growers and establishments
Commercial operators must secure state licenses, pass criminal background checks, comply with strict packaging and security mandates, and obtain local government authorization to conduct business.
Qualifying local governments
Municipalities and counties hosting cannabis establishments are empowered to regulate or authorize operations and are eligible for financial assistance payments from the state.
Minors under 21 years of age
Minors remain strictly prohibited from purchasing, possessing, or consuming cannabis, and sales to minors carry criminal penalties.
Key Facts
- Adults aged 21 or older are authorized to use, possess, and transport up to 2.5 ounces of cannabis, with a maximum of 15 grams in concentrate form.
- Adults may store up to 10 ounces of cannabis at their private residence, provided amounts exceeding 2.5 ounces are kept in a locked, secure container or area.
- A 10 percent state sales tax is imposed on all retail sales of cannabis and cannabis products, in addition to existing sales taxes.
- Tax proceeds are allocated as 10 percent to the cannabis regulation account, 10 percent to the testing and quality control account, 20 percent to the local share account, and the remainder to the foundation school fund.
Show all 10 facts
- Commercial cannabis entities must obtain a license from the Texas Department of Licensing and Regulation as a grower, establishment, secure transporter, or testing facility.
- License holders must operate within a county or municipality that has adopted an order or ordinance authorizing cannabis establishments.
- The Texas Commission of Licensing and Regulation must adopt necessary implementation rules by July 1, 2026.
- The Texas Department of Licensing and Regulation must begin issuing licenses to qualified applicants no later than November 1, 2026.
- Selling, giving, or distributing cannabis to a minor under 21 years of age is classified as a Class C misdemeanor offense.
- Cannabis establishments are prohibited from selling tobacco products and must submit monthly sales reports to the comptroller.
Frequently Asked Questions
How much cannabis can an adult legally possess for personal use under this bill?
Are local governments required to allow cannabis businesses to operate?
Where do the revenues from the new cannabis sales tax go?
What is the penalty for selling cannabis to a minor?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · introduced in the House.
Procedural history
1 action- Jul 24, 2025HouseIntroducedFiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Establishment of State Cannabis Licensing and Taxation
The bill shifts state policy from strict prohibition to a regulated market overseen by the Texas Department of Licensing and Regulation with a 10% sales tax.
Connected Entities
Sources
capitol.texas.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 90)
- Controversy85Intensity of disagreement among stakeholders
- Entertainment15Compellingness for a non-policy-wonk reader
- Buzz75Current news / social attention level
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