Texas House Bill HB1937

Texas 2023 - 88th Regular

• Filed: 2/6/23

Caption

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; creating a criminal offense; imposing a tax.

Impact

HB1937 impacts several state laws primarily within the Health and Safety Code and the Tax Code, establishing new chapters dedicated to cannabis regulation and taxation. A new tax will be imposed on cannabis sales at a rate of 10%, with proceeds directed toward various funds including those for cannabis regulation, quality control, and local government assistance. The bill further stipulates that local governments can impose their own regulations as long as these align with state law, allowing for local control while creating a statewide regulatory framework. The professional licensing aspect ensures that all involved in the cannabis industry adhere to specific standards aimed at public safety and health.

Summary

House Bill 1937 aims to regulate the cultivation, manufacture, processing, distribution, sale, testing, transportation, delivery, transfer, possession, use, and taxation of cannabis and cannabis products. It introduces a structure for the creation of local cannabis regulations, licensing requirements, and sets forth the guidelines under which adults may use cannabis. The bill highlights the necessity for regulatory oversight while creating a new framework for cannabis-related businesses to operate legally in Texas. It establishes a clear distinction between legal adult use of cannabis and illegal distribution or possession, addressing both usage rights for adults over 21 and prohibitions aimed at underage possession.

Sentiment

The sentiment surrounding HB1937 is mixed but generally leans towards positivity among supporters who advocate for the economic benefits, public health safeguards, and the potential for reduced law enforcement costs associated with cannabis prohibition. However, there are notable points of contention regarding public safety, particularly surrounding youth access to cannabis, as well as concerns regarding community impacts and regulation complexities from local authorities. Opponents raise concerns about the effectiveness of oversight and the potential risks of increased cannabis use within vulnerable populations.

Contention

Contention surrounding HB1937 primarily revolves around two issues: the balance of local versus state control in cannabis regulation and concerns about public health impacts, particularly regarding underage use. Critics argue that while local regulations are allowed, the overarching state guidelines might limit local governments' ability to tailor regulations to their community's unique needs. Additionally, how the taxation and regulation frameworks would affect existing public health strategy and enforcement mechanisms leads to debates among stakeholders, ranging from advocates of tight regulations to proponents of free-market approaches.

Texas Constitutional Statutes Affected

Health And Safety Code

• Chapter 443. Manufacture, Distribution, And Sale Of Consumable Hemp Products
  • Section: New Section
  • Section: 2025

• Chapter 481. Texas Controlled Substances Act
  • Section: 062

Agriculture Code

• Chapter 122. Cultivation Of Hemp
  • Section: New Section

Government Code

• Chapter 411. Department Of Public Safety Of The State Of Texas
  • Section: 502
  • Section: 0891