Federal Marijuana Legalization Bill Would Deschedule Cannabis, Expunge Convictions and Establish National Regulations
- The Cannabis Administration and Opportunity Act, led by Senators Cory Booker and Chuck Schumer, seeks to remove marijuana from the Controlled Substances Act, create a national regulatory framework, and expunge certain federal marijuana convictions.
- The bill mandates the attorney general to remove marijuana from the federal controlled substances list within 180 days and allows states to regulate marijuana sales while preventing them from blocking transport of cannabis between legal states.
- It establishes a federal oversight system involving the FDA and other agencies, limits recreational marijuana use to adults 21+, and includes automatic expungement of low-level federal marijuana convictions with options for resentencing.
- The legislation prohibits marijuana use or convictions from being the sole basis for denial of federal benefits, updates banking guidance for cannabis businesses, and imposes a tiered federal excise tax on marijuana producers and businesses.
A federal marijuana legalization bill reintroduced in the U.S. Senate would remove cannabis from the Controlled Substances Act, establish a national regulatory framework and expunge certain federal marijuana convictions.
The Cannabis Administration and Opportunity Act is being led by Senator Cory Booker (D-NJ) and Senate Minority Leader Chuck Schumer (D-NY), along with several other Democratic senators.
Under the proposal, the attorney general would be required to finalize a rule removing marijuana from the federal controlled substances list within 180 days of enactment.
States would retain the authority to prohibit marijuana production and sales within their borders. However, states could not block cannabis products from passing through their jurisdictions while being transported between states where marijuana is legal.
The proposal would limit recreational marijuana purchases to adults 21 and older and create a federal oversight system involving the Food and Drug Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alcohol and Tobacco Tax and Trade Bureau. A new Center for Cannabis Products within the FDA would oversee areas including manufacturing, labeling, distribution and retail sales.
The legislation would also provide for the automatic expungement of low-level federal marijuana convictions within one year. People serving federal sentences for marijuana offenses could petition courts for resentencing or other relief.
Marijuana use, possession or a cannabis conviction could no longer be used as the sole reason to deny someone federal benefits, housing assistance, employment protections or certain civil rights. Federal workplace testing for marijuana would also generally be prohibited, with exceptions for law enforcement, national security and other sensitive positions.
The Financial Crimes Enforcement Network would be directed to update federal guidance confirming that banks and credit unions may serve licensed marijuana businesses. The Small Business Administration would also be required to make its programs available to cannabis companies and businesses that provide services to them.
Federal excise taxes would begin at 5% for small- and mid-sized producers before gradually rising to 12.5%. Larger marijuana businesses would initially face a 10% tax, increasing over time to as much as 25%.
The proposal is separate from the MORE Act, which would deschedule cannabis but would not establish a legal regulatory framework. That proposal has 75 sponsors in the House.