United States Senate Introduces Federal Bill to Legalize Cannabis

by Omar Figueroa and Lauren Mendelsohn

July 21, 2022

On July 21, 2022, the United States Senate finally filed its long-awaited Cannabis Administration and Opportunity  Act, which would federally legalize, tax, and regulate cannabis.

The Bill, introduced by Senate Majority Leader Chuck Schumer and Senators Booker and Wyden, can be read below:

caoa-final-introduction-bill-text

You can also download the bill here.

According to Erik Altieri, Executive Director of the National Organization for the Reform of Marijuana Laws:

CAOA removes cannabis from the Controlled Substances Act schedule entirely, ending the threat of federal prosecution for possession and licensed commercial activity, and allows states to implement their cannabis policies free from federal interference. It also eliminates many hurdles currently facing regulated state cannabis markets, including lack of access to financial services, the inability to deduct standard business expenses when filing federal taxes, and the lack of uniform national regulatory standards and guidelines. The legislation also reinvests in communities that have been disproportionately impacted by prohibition, provides for the expungements of past criminal records, and would help improve diversity and inclusion in regulated cannabis markets.

Aaron Smith, CEO and Co-Founder of the National Cannabis Industry Association, stated:

For the last year, NCIA has been working behind the scenes to ensure this landmark legislation not only ends prohibition but also creates an environment where small and medium-sized businesses can thrive under national legalization. These businesses – who we now call “Main Street Cannabis” – are the heart of our industry and we’re proud to have been giving them a seat at the table in our nation’s halls of power for over 12 years.

We will continue working with our allies in the Senate to advance this bill and advocate for some necessary amendments to better ensure that small, equity, and women-owned businesses (in particular) are well-positioned to thrive after the end of federal prohibition.

Stay tuned for more information about the Cannabis Administration and Opportunity  Act (CAOA) and other federal legalization proposals.