No, it means that, as in the several states that have legalized marijuana, store owners would be licensed and regulated - and would (absent excessive taxation) take many customers away from street dealers.
These drugs as in the title are not regulated.
You asked about legalization, which Buttboy's plan is not. Under his plan, dealing would remain illegal and unregulated, and so only criminals would deal, just as they do now; such ideas are usually referred to as "decriminalization."
Does this mean all are innocent when people die of drug abuse from addicts getting drugs by these people/
No - Buttboy would change only the laws relating to personal-use possession (which, again, is different from legalization).
Up here in Humboldt county the decriminalization is so bad old Newsom pulled agents off the border to bust illegal grows. It's way worse than ever. I honestly could not imagine what would happen with old Buttboy's idea.