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 cannabis establishments; 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.

89th Legislature (2025) Introduced by James Talarico

Texas bill legalizes and regulates cannabis production/sales statewide, expunges prior convictions, and creates new tax revenue while allowing local restrictions on dispensaries.

Referred to Licensing & Administrative Procedures

#comptrollerofpublicaccounts(v2608) #criminalrecords(s0008) #crimes--drugs(i0185) #expunctionofrecords(s0189) #ethics(i0345) #fees&othernontaxrevenue--state(i0362) #identificationcards(s0074) #licensing&regulation #texascommissionof(v0383) #texasdepartmentof(v8529) #marihuana(s3105) #minors--health&safety(i0533) #occupationalregulation--othertrades&professions(i0541) #packaging&labelingrequirements(s0339) #recordsmanagement(s0205) #taxation--sales(i0800)

Legislative bill overview

HB 5307 proposes comprehensive legalization and regulation of cannabis in Texas, establishing a state licensing system for cultivation, manufacturing, processing, and retail operations. The bill includes provisions for expunging records related to previously decriminalized cannabis conduct and creates a new tax structure on cannabis products.

Why is this important

This represents a significant shift in Texas drug policy, potentially affecting hundreds of thousands of Texans with prior cannabis convictions, generating substantial state tax revenue, and creating a new regulated industry. The outcome could reshape criminal justice outcomes, state budgets, and the competitive landscape between Texas and neighboring states with existing legal cannabis markets.

Potential points of contention

Federal vs. State conflict: Cannabis remains Schedule I under federal law, creating banking, interstate commerce, and enforcement complications that could expose businesses and the state to federal prosecution despite state legalization

Local control vs. state uniformity: The bill allows local regulation of cannabis establishments, which could create a patchwork of legal/illegal zones, similar to issues in California, making compliance and fair market access difficult

Tax rate and social equity: The tax structure and whether provisions adequately address communities disproportionately affected by the War on Drugs (eligibility for licenses, expungement scope, reinvestment commitments) will likely face debate

Public health concerns: Opposition may focus on youth access prevention, impaired driving enforcement, workplace safety standards, and long-term health monitoring mechanisms