Close

United States House of Representatives Passes Marijuana Opportunity Reinvestment and Expungement (MORE) Act

by Omar Figueroa

April 2, 2022

Seal of Seal US House of Representatives

On April 1, 2022, the United States House of Representatives passed the Marijuana Opportunity Reinvestment and Expungement (MORE) Act with a bipartisan majority and a decisive margin of 220-204.  This is the second time that the MORE Act has made it through the House.  Unfortunately, the bill’s future is uncertain, and there seems to be no clear path forward in the Senate at this time.

According to the summary prepared by the Congressional Research Service, the MORE Act would accomplish the following:

This bill decriminalizes marijuana.

Specifically, it removes marijuana from the list of scheduled substances under the Controlled Substances Act and eliminates criminal penalties for an individual who manufactures, distributes, or possesses marijuana.

The bill also makes other changes, including the following:

  • replaces statutory references to marijuana and marihuana with cannabis,
  • requires the Bureau of Labor Statistics to regularly publish demographic data on cannabis business owners and employees,
  • establishes a trust fund to support various programs and services for individuals and businesses in communities impacted by the war on drugs,
  • imposes an excise tax on cannabis products produced in or imported into the United States and an occupational tax on cannabis production facilities and export warehouses,
  • makes Small Business Administration loans and services available to entities that are cannabis-related legitimate businesses or service providers,
  • prohibits the denial of federal public benefits to a person on the basis of certain cannabis-related conduct or convictions,
  • prohibits the denial of benefits and protections under immigration laws on the basis of a cannabis-related event (e.g., conduct or a conviction),
  • establishes a process to expunge convictions and conduct sentencing review hearings related to federal cannabis offenses, and
  • directs the Government Accountability Office to study the societal impact of cannabis legalization.

These changes would dramatically alter the federal legal landscape for state-licensed cannabis businesses.  For example, the MORE Act would provide tax relief from onerous consequences of Section 280E of the Internal Revenue Code while at the same time imposing a new federal tax on cannabis products which would start at 5 percent for the first two calendar years and escalate one percent each calendar year until it reaches 8 percent.

This is a developing story.  Stay tuned to our blog for further information.

 

This information is provided as a public educational service and is not intended as legal advice. For specific questions regarding U.S. federal or California cannabis laws and regulations, please contact the Law Offices of Omar Figueroa at 707-829-0215 or info@omarfigueroa.com to schedule a confidential legal consultation.

Omar Figueroa is the attorney responsible for this advertisement. Prior results do not guarantee a similar outcome.

 

 

 

Skip to content