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 local regulation of cannabis establishments; authorizing the imposition of fees; requiring an occupational license or registration; creating a criminal offense; imposing a tax.

89th Legislature (2025) Introduced by John Bucy

Texas bill legalizes and regulates cannabis sales through state licensure, local control, taxation, and criminal penalties for unauthorized cultivation or distribution.

Referred to Licensing & Administrative Procedures

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Legislative bill overview

HB 2975 proposes comprehensive state-level regulation of cannabis cultivation, manufacturing, processing, distribution, and sale in Texas, including licensing requirements, local control provisions, taxation, and criminal penalties for non-compliance. The bill creates a framework for legal cannabis establishments while imposing occupational licenses, registration requirements, and tax obligations on industry participants.

Why is this important

This bill represents a significant shift in Texas drug policy, potentially transforming cannabis from a prohibited substance into a regulated commercial product. It would generate state tax revenue, create licensing infrastructure, and establish legal clarity for businesses and consumers—while also raising questions about implementation costs, local autonomy, and criminal justice implications for existing cannabis offenders.

Potential points of contention

Local control vs. state uniformity: The bill grants local regulation authority while imposing state framework, potentially creating a patchwork of conflicting local restrictions that burden businesses

Tax rate and business viability: The taxation structure could determine whether legal cannabis prices remain competitive with illegal markets, affecting both tax revenue and criminal deterrence effectiveness

Criminal penalties and equity: The bill creates new criminal offenses but lacks details on whether prior cannabis convictions will be addressed, raising concerns about unequal treatment between legacy offenders and newly-licensed operators