Congressmen from both parties have introduced a new bill to end federal marijuana prohibitions in states where it has been legalized, and provide a regulatory framework federally for cannabis-based products.
The Strengthening of the Tenth amendment Through Entrusting states (STATES 2.0) Act was filed by Reps. Dave Joyce, Max Miller and Dina T. Titus on Thursday.
The bill would amend the Controlled Substances Act to prohibit criminalization by federal authorities of those who comply with state-run cannabis programs and Indian tribal ones.
The measure’s introduction comes amid the release of a new survey from a GOP pollster affiliated with President Donald Trump that found that a majority of Republicans back a variety of cannabis reforms—and, notably, they’re even more supportive of allowing states to legalize marijuana without federal interference compared to the average voter.
STATES 2.0 Act also would legalize the interstate trade of cannabis, normalize Internal Revenue Service policies for the sector and envisage a federal framework to tax and regulate the industry.
Joyce, cochair of the Congressional Cannabis Caucus stated that “whether a state supports or opposes legalization, it is clear to all that the current federal policy on cannabis is ineffective.” As President Trump acknowledged, current policy caused unneeded harm and wasted taxpayer dollars. It diverted law enforcement resources away from fighting violent crimes and instead made unnecessary arrests.
He said that the STATES 2.0 Act would solve this problem by creating a more logical cannabis regulatory approach that allowed each state to implement policies that best fit their community and needs. I look forward to working with my colleagues, and the Administration in order to make our communities safer and protect their rights.
To the congressman’s point, Trump has previously voiced support for taking a states’ rights approach to marijuana—and he went so far as to endorse a Florida legalization initiative that ultimately fell short at the ballot last year.
Joyce, along with other bipartisan legislators have now introduced the STATES Act for the third time. The bill that was filed is exactly the same one as last year.
Text of bill states that tribes and state should be allowed to “enact restrictions on time, location, and manner that aid small businesses and artisans, enforce regulations for safety and health, keep cannabis business away from schools, as well as fit in with the values and character of their community”.
The legislation states that “States have the right to decide what occurs within their borders but they are not allowed to make unilateral laws allowing or restricting the interstate trade.” The illegal interstate trade of cannabis continues despite major State policy shifts in the absence federal action. This interstate trade should be regulated and tracked by the Federal Government to make sure cannabis doesn’t end up in places it shouldn’t.
To this end, federal officials should “require that a framework be established that provides for critical elements such as the proper administration and supervision, protections of consumer safety, and enforcement.” This, according to the bill, should include a small federal excise duty on cannabis, which would then be overseen by Alcohol and Tobacco Tax and Trade Bureau.
The legislation does not include provisions mandating such a tax, though its findings section says the rate should “be low enough to not exacerbate the level of taxation set by States, thereby avoiding the pyramid effect of adding Federal taxes on top of high State taxes.”
According to the bill, the tax would also be used “to offset the costs associated with executing administrative functions within a Federal regulatory regime for marijuana including testing requirements, enforcement, and police, as well as youth prevention and drug abuse prevention and education.”
Today, recreational cannabis is legal in 24 states, and its use as a medical treatment is allowed by 39 others. Miller explained that “the STATES 1.0 Act provides a balanced approach to bridge the gap in federal and state marijuana laws.”
It’s high time that federal legislators establish sensible guardrails to protect children, improve public safety, fund scientific research and address mental and addiction health issues, as well as uphold the right of communities who choose not to use cannabis. This bill allows states to create policies that best reflect their needs and values without worrying about federal interference.
The revised bill will prevent tribes and states from blocking the transport of cannabis from one legal jurisdiction to another. According to the revised bill, origin and destination countries could “impose reasonably restrictive measures” in their own borders on the production, consumption, possession, dispensation or administration of marijuana.
In addition, under the STATES 1.0 Act, revenue from sales of marijuana on regulated state market “shall be exempt from section 280E”, which is currently preventing the cannabis industry from being able to claim federal tax breaks available for traditional markets.
That represents a key issue for the industry, which has also been pushing Congress for years to advance a different bipartisan bill—the Secure and Fair Enforcement (SAFE) Banking Act that Joyce has previously led.
In the STATES Act new legislation, it stipulates the attorney general has 180 days to make a decision amending the CSA so that states and tribes are exempted from federal prohibition of marijuana.
This would allow the Food and Drug Administration (FDA), to continue regulating marijuana that is sold as a medicine, food, supplement, or cosmetic. Additionally, it would prevent marijuana from being combined “adulterated”, including tobacco and alcohol. Health and Human Services would be given 180 days to release a final rule that regulates cannabis products, including the requirements of contaminant tests, manufacture and marketing.
It also states that anyone “knowingly or intentionally” who manufactures or produces marijuana, possess, distribute, dispense, administer, or deliver any marijuana, in violation of state or tribal laws, will still face federal prosecution. This includes those who hire a minor for cannabis handling.
Government Accountability Office would need to do a thorough study of the impact of legalization of cannabis on road safety. They will also have to submit their findings in a Congress report within one-year of the legislation’s enactment.
This section also expresses that Congress supports the “tribal self determination and self government with regard to marijuana regulations.”
Titus said, “The bill guarantees that the federal Government does not interfere in states or tribal governments who have decided to legalize Cannabis.”
As Co-Chairwoman of the Cannabis Caucus, she said: “This is the sort of commonsense legislation I’m hoping to push forward as a co-chair.” She said, “It is time to have national policy catch up or get out the way.
Organizations such as Americans for Prosperity, U.S. Cannabis Roundtable, R Street Institute, Americans for Prosperity, and Reason Foundation are also supporting the legislation.
Shanita Penny said that Congress has the opportunity to help each state succeed in their policies. The current confusing patchwork state and federal laws on cannabis are undermining the public’s safety and limiting economic growth. They also leave patients, vets, small businesses owners and law enforcement in a legal limbo. The STATES 2.0 Act changes that—bringing clarity, consistency, and accountability.”
A spokesperson for the White House told CNN recently that “no actions” are planned by the Administration on reforms to marijuana laws, such as rescheduling or allowing industry banks access, which Trump endorsed during the 2016 campaign.
The White House has also said that marijuana rescheduling is not a part of Trump’s drug policy priorities for the first year of his second term—a disappointment for advocates and stakeholders who hoped to see him take speedier action.
Ex-officials with the Drug Enforcement Administration and U.S. Department of Health and Human Services have also stated that without Trump’s personal advocacy, the process of marijuana rescheduling could stall for an indefinite period of time.
You can read the full text of STATES 2.0 below.
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