Federal Decriminalization of Marijuana Proposed in Senate

Senate Majority Leader Chuck Schumer introduced draft legislation today that would federally decriminalize marijuana.

The Cannabis Administration and Opportunity Act — co-authored by Schumer, Sen. Cory Booker (D-NJ) and Sen. Ron Wyden (D-OR) — would remove marijuana from the Controlled Substances Act and impose a federal tax on cannabis products, with money being allocated to restorative justice programs in communities affected by “the failed federal prohibition of cannabis,” according to the New York Times.

Additionally, the proposed bill would expunge prior non-violent marijuana-related convictions, allow people to petition for resentencing, and would remove immigration-related penalties for people criminalized for related charges. States and localities would be able to apply for loan programs to support small cannabis businesses owned by “socially and economically disadvantaged individuals,” according to The Verge.

“This is a grievous reality. Lives are being destroyed every single day,” Booker said when introducing the bill. “We have our precious resources being used to lock up majority Black and brown people for doing things that presidents, congresspeople and senators have done. This bill is urgent. This bill is long past due.”

The new bill maintains states’ authority to set their own marijuana policies. Federal regulation would be transferred from the Drug Enforcement Administration (DEA) to the Food and Drug Administration (FDA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Alcohol and Tobacco Tax and Trade Bureau (TTB), according to the Marijuana Moment.

A minimum age of 21 would be set for all cannabis retail sales. State and local governments would still be able to create and enforce their own rules and regulations, similar to alcoholic beverages. Recreational use of cannabis is currently legal in 18 states, while medicinal use is legal in 37 states.

“It is clear from current law in other contexts that we have the capacity to safely and responsibly regulate cannabis sales, possession, and use in a way that balances individual liberty with public health and safety,” the bill reads, citing current regulations for alcohol and tobacco. “Americans — especially Black and Brown Americans — no longer have to fear arrest or be barred from public housing or federal financial aid for higher education for using cannabis. … State-compliant cannabis businesses will finally be treated like other businesses and allowed access to essential financial services, like bank accounts and loans, [and] medical research will no longer be stifled.”

The measure would require 60 votes to pass through the U.S. Senate, meaning at least 10 Republican senators would have to join the effort, according to the Times. Some Democrats have also expressed hesitancy to pass the bill, including President Joe Biden, who has not endorsed the proposal. Biden has supported decriminalization efforts, but has not gone so far as to support federal legalization, according to Politico.

The House of Representatives passed similar legislation in December, but it did not gain traction in the Senate.

Constellation Brands CEO Bill Newlands has expressed optimism in federal legalization happening soon. During Constellation’s latest earnings call, he went so far as to say that legislation would pass this congressional session.

Constellation holds a 38.6% stake in Canopy Growth, an Ontario, Canada-based cannabis company.