TX HB3242

Reduces possession of marijuana (one ounce or less) and possession of tetrahydrocannabinols/synthetic cannabinoids in Penalty Group 2-A or 2-B (one ounce or less) from Class B misdemeanors to Class C misdemeanors (fine-only offenses), while amounts between one and two ounces remain Class B misdemeanors

Requires peace officers to issue citations rather than arrest individuals for possession offenses involving one ounce or less of marijuana, tetrahydrocannabinols, or drug paraphernalia

Creates a new Penalty Group 2-B specifically for tetrahydrocannabinols (THC) and synthetic cannabinoids, separating these substances from Penalty Group 2

Mandates deferred disposition (no conviction entered) for first-time offenders charged with the lowest-level possession offenses if no prior deferral was received within the preceding 12 months, and requires courts to notify defendants of expunction rights upon case dismissal

Establishes an expunction process for dismissed or acquitted low-level possession cases, available 180 days after dismissal or one year after citation, with a $30 fee, and excludes fine-only drug offenses from triggering driver's license suspension