Page 4 - Cannabis News Florida August 2022

Legislative Update
TM AROUND THE REGION

Cannabis Administration and Opportunity

Act (CAOA) Introduced in Congress

As written, legislation would federally legalize marijuana and promote social equity

BY VANESSA ORR ends discrimination in the provision of allowed to purchase recreational marijua- c/caoa_final_introduction.pdf
federal benefits on the basis of cannabis na products. Despite working across the aisle to cre-
On July 21, 2022, Senate Majority use, provides major investments for • Expunging the records of people with ate this bill, its passage hinges on reaching
Leader Chuck Schumer (D-NY), U.S. cannabis research, and strengthens worker low-level, federal cannabis convictions the 60-vote threshold needed to pass the
Senator Cory Booker (D-NJ), and Senate protections. within one year of enactment, while allow- measure through the Senate, and
Finance Committee Chair Ron Wyden (D- By decriminalizing cannabis at the feder- ing those currently incarcerated over mar- Republican senators are expected to
OR) introduced the Cannabis al level, the CAOA also ensures that state- ijuana to petition the courts for relief. oppose the measure to remove cannabis
Administration and Opportunity Act legal cannabis businesses or those in adja- • Separate Equitable Licensing Grant from the CSA. They may also take issue
(CAOA) in Congress. This comprehensive cent industries will no longer be denied and Equitable Licensing Grant programs with imposing a federal tax on marijuana
legislation would remove cannabis from access to bank accounts or financial serv- would provide funding for states and local- sales and automatic expungements for
the federal list of controlled substances ices simply because of their ties to ities to promote participation in the indus- prior cannabis convictions. The bill may
and empower states to implement their cannabis. try by minority and low-income people. also be in danger if not all Democratic sen-
own cannabis laws. HELP Committee The bill contains a number of key provi- • The Financial Crimes Enforcement ators support the legislation.
Chair Patty Murray (D-WA) and HSGAC sions, including: Network (FinCEN) would update or issue The bill moved to a Senate Judiciary
Committee Chairman Gary Peters (D-MI) • Requiring the attorney general to final- new guidance clarifying to banks and cred- subcommittee on July 27, 2022, where
also cosponsored the legislation. ize a rule removing marijuana from the it unions that the policy change means lawmakers will continue to work on the
According to a press release by Sen. Controlled Substances Act (CSA) within that they can lawfully service legitimate bill with the goal of bringing it to the floor.
Booker’s office, the legalization bill, which 180 days of enactment. cannabis businesses. If the broad-reaching CAOA doesn’t gain
incorporates feedback received from more • Imposing a 5 percent federal excise tax • States could choose to continue pro- enough support for enactment, an alterna-
than 1,800 comments submitted after the on small- to mid-sized cannabis producers, hibiting marijuana production and sales, tive omnibus cannabis reform package has
draft’s release, establishes a federal regula- which would gradually increase to 12.5 but cannot prevent transportation of been discussed within both chambers that
tory framework to protect public health percent after five years. The tax would start cannabis products between legal states would consist of incremental marijuana
and safety, prioritizes restorative and eco- at 10 percent and increase to a maximum through their jurisdiction. reforms—such as cannabis banking pro-
nomic justice to help undo the decades of of 25 percent for large businesses. To see the full bill as introduced, visit tections—while still stopping short of
harm caused by the failed War on Drugs, • Only those 21 and older would be www.democrats.senate.gov/imo/media/do removing cannabis from the CSA.

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