Is the federal government ever going to legalize cannabis?

While the draft copy of the CAOA that the senators have shared is a promising step in the right direction, there is concern about a potential presidential veto. When the CAOA is formally introduced, if it gains support in the House of Representatives and the Senate, President Biden may still veto the bill. Just hours after Sen. Chuck Schumer introduced the draft CAOA, when questioned about the legislation, the White House Press Secretary commented that, “nothing has changed. There’s no new endorsements of legislation to report today.” The lack of clear presidential support is not entirely unsurprising given previous statements on the issue. The President has voiced support for decimalization, but during a spring briefing, the Press Secretary indicated that the President “supports leaving decisions regarding legalization for recreational use up to the states.” While political support for cannabis remains uncertain, three things are certain: 1) The majority of Americans support some level of cannabis reform, 2) cannabis legalization efforts are spreading like wildfire, and 3) the lack of federal standards for cannabis is stunting the industry and the larger economy. If the federal government does not start to put out all the little fires that are igniting due to inconsistent testing standards, arbitrary restrictions, and patchwork legislation, there will be a lot of smoke to extinguish. Koral Fritz is a licensed attorney and Professor of Cannabis Business at Lake Superior State University.

Namely, the CAOA seeks to: – Remove cannabis from the Controlled Substances Act. – Establish a new definition of “cannabis” for consistency between federal laws. – Transfer primary jurisdiction over cannabis from the Drug Enforcement Agency to the Food and Drug Administration, the Alcohol and Tobacco Tax and Trade Bureau, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. – Impose a 10% federal excise tax that will increase to 25% by the 5th year after the CAOA enactment. – Establish a tax revenue fund, known as the Opportunity Trust Fund, to collect the proposed federal excise tax on cannabis. Money in the fund would be used to “reinvest in the communities most impacted by the failed War on Drugs.” – Continue permitting individual states to control the possession, production, and distribution of cannabis. – Direct the Government Accountability Office, Department of Health, Department of Transportation, and the Centers for Disease Control and Prevention to study and address public health concerns and benefits related to cannabis consumption and legalization. – Allow those serving time in federal prison for non-violent marijuana crimes to petition for resentencing. – Automatically expunge the records for those with federal non-violent cannabis crimes.

As of early July 2021, 18 states plus Washington, D.C. have legalized recreational or adult use cannabis and 37 states have legalized medical cannabis to varying degrees. While many of these states work to implement new laws and regulations, change may be coming on the federal level. For decades, advocacy groups have lobbied congress for cannabis reform. What once was an easily-ignored, low hum coming from the Woodstock hippies has crescendoed into a mainstream anthem sung by American heroes, pop culture, and freethinkers. Now, facing the music, three leading senators (Senate Majority Leader Chuck Schumer, D-N.Y., Senate Finance Committee Chairman Ron Wyden, D-ORE., and Senator Cory Booker, D-N.J.) have recently released a preliminary draft of a federal cannabis legalization bill.

The senate trio hinted at forthcoming legislation in February, providing that “. . . we will release a unified discussion draft on comprehensive reform to ensure restorative justice, protect public health and implement responsible taxes and regulations. . . .” The 163-page document the senators shared in mid-July represents a draft of the yet-to-be-introduced Cannabis Administration and Opportunity Act (“CAOA”). The senators are seeking stakeholder feedback on the draft bill through the beginning of September. At that point, the senators will likely evaluate comments, edit the draft, and formally introduce the bill as proposed legislation.