Draft Legislation on Cannabis Reform Creates Surge
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Posted On: 11/15/2021 3:00:58 PM
Draft Legislation on Cannabis Reform Creates Surge in Cannabis Stocks
Reports on the recent surge of cannabis stocks after news of a draft bill, known as the States Reform Act, that is set to legalize and tax marijuana. This news created a surge in the majority of cannabis stocks on Friday, November 12, 2021. According to news sources, Rep. Nancy Mace (R-SC) is leading the preliminary marijuana bill (still being circulated for feedback) and hopes to have a final version officially filed later this month.
This is a huge development in the marijuana industry making this a very active year on the Hill for cannabis reform. “Republican buy in could prove critical to getting something over the finish line, and the Mace measure seems aimed at appealing to the states’ rights and business interests of conservative colleagues on her side of the aisle while also incorporating some restorative justice and tax elements largely favored by progressives,” cited the source.
See a partial summary of the legislation below (source):
Cannabis would be federally de-scheduled and treated in a manner similar to alcohol.
A 3.75 percent excise tax would be imposed on cannabis sales. Revenue would support grant programs for community reentry, law enforcement and Small Business Administration (SBA) aid for newly licensed businesses.
The Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) would be the chief regulator for marijuana with respect to interstate commerce.
The Food and Drug Administration (FDA) would be limited in its regulatory authority, with the intent being that it would have no more control over cannabis than it does for alcohol except when it comes to medical cannabis. The agency could prescribe serving sizes, certify designated state medical cannabis products and approve and regulate pharmaceuticals derived from marijuana, but could not ban the use of cannabis or its derivatives in non-drug applications, like in designated state medical cannabis products, dietary supplements, foods, beverages, non-drug topicals or cosmetics.
Raw cannabis would be considered an agricultural commodity regulated by the U.S. Department of Agriculture (USDA).
The legislation would grandfather existing state-licensed cannabis operators into the federal scheme to ensure continued patient access and incentivize participation in the legal market.
As federal agencies work to promulgate rules, there would be safe harbor provisions to protect patients and marijuana businesses acting in compliance with existing state laws.
People with certain federal cannabis convictions that were non-violent would be eligible for expungements.
To prevent youth use, there would be a mandatory 21 age limit for recreational cannabis, and the bill also prescribes certain restrictions on things like advertising.
SBA would need to treat marijuana businesses the same as other regulated markets, like it does for alcohol companies, for example.
The measure also stipulates veterans can’t face discrimination in federal hiring due to cannabis use, and doctors with the U.S. Department of Veterans Affairs (VA) would be specifically authorized to issue recommendations for medical cannabis for veterans.
Federal agencies could continue to drug test for marijuana.
The Bureau of Labor Statistics (BLS) would be required to issue a report to Congress on the marijuana industry.
Provisions are subject to change as the proposal is finalized ahead of its formal introduction in Congress.
Reports on the recent surge of cannabis stocks after news of a draft bill, known as the States Reform Act, that is set to legalize and tax marijuana. This news created a surge in the majority of cannabis stocks on Friday, November 12, 2021. According to news sources, Rep. Nancy Mace (R-SC) is leading the preliminary marijuana bill (still being circulated for feedback) and hopes to have a final version officially filed later this month.
This is a huge development in the marijuana industry making this a very active year on the Hill for cannabis reform. “Republican buy in could prove critical to getting something over the finish line, and the Mace measure seems aimed at appealing to the states’ rights and business interests of conservative colleagues on her side of the aisle while also incorporating some restorative justice and tax elements largely favored by progressives,” cited the source.
See a partial summary of the legislation below (source):
Cannabis would be federally de-scheduled and treated in a manner similar to alcohol.
A 3.75 percent excise tax would be imposed on cannabis sales. Revenue would support grant programs for community reentry, law enforcement and Small Business Administration (SBA) aid for newly licensed businesses.
The Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) would be the chief regulator for marijuana with respect to interstate commerce.
The Food and Drug Administration (FDA) would be limited in its regulatory authority, with the intent being that it would have no more control over cannabis than it does for alcohol except when it comes to medical cannabis. The agency could prescribe serving sizes, certify designated state medical cannabis products and approve and regulate pharmaceuticals derived from marijuana, but could not ban the use of cannabis or its derivatives in non-drug applications, like in designated state medical cannabis products, dietary supplements, foods, beverages, non-drug topicals or cosmetics.
Raw cannabis would be considered an agricultural commodity regulated by the U.S. Department of Agriculture (USDA).
The legislation would grandfather existing state-licensed cannabis operators into the federal scheme to ensure continued patient access and incentivize participation in the legal market.
As federal agencies work to promulgate rules, there would be safe harbor provisions to protect patients and marijuana businesses acting in compliance with existing state laws.
People with certain federal cannabis convictions that were non-violent would be eligible for expungements.
To prevent youth use, there would be a mandatory 21 age limit for recreational cannabis, and the bill also prescribes certain restrictions on things like advertising.
SBA would need to treat marijuana businesses the same as other regulated markets, like it does for alcohol companies, for example.
The measure also stipulates veterans can’t face discrimination in federal hiring due to cannabis use, and doctors with the U.S. Department of Veterans Affairs (VA) would be specifically authorized to issue recommendations for medical cannabis for veterans.
Federal agencies could continue to drug test for marijuana.
The Bureau of Labor Statistics (BLS) would be required to issue a report to Congress on the marijuana industry.
Provisions are subject to change as the proposal is finalized ahead of its formal introduction in Congress.
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