Schumer, Booker and Wyden unveil cannabis legalization bill – here’s what’s inside

Through Nina Zdinjak

A long-awaited US Senate bill that would decriminalize and de-schedule cannabis at the federal level while promoting social justice has finally been unveiled.

What happened: The bill brought by Senate Majority Leader Chuck Schumer, Senators Ron Wyden and Senators Cory Booker — titled the Cannabis Administration and Opportunity Act (CAOA) — was introduced Thursday. Here are the highlights from the almost 300 pages:

Photo by Kevin Dietsch/Getty Images

• The Attorney General should complete the rules to remove marijuana and tetrahydrocannabinol in cannabis from the Controlled Substances Act within 180 days of the Act’s entry into force.
• Set a 5% state use tax for small-to-medium marijuana producers, gradually increasing to 12.5% ​​after five years.
• For larger companies, the tax would start at 10% and reach a maximum of 25%.
• Recreational marijuana products would only be legal for adults 21 and older.
• Deletion of records of individuals with low-level federal cannabis convictions within one year of the effective date.
• Creating a federal regulatory framework for the cannabis industry, with the Food and Drug Administration (FDA), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Alcohol and Tobacco Tax and Trade Bureau (TTB) being the primary roles.
• Under the FDA there would be a Cannabis Products Center responsible for “the production, labeling, distribution, sale and other manufacturing and retail elements of the cannabis industry.”

Why It Matters: Schumer and colleagues Sens. Booker and Wyden presented the outline of the CAOA in July 2021. The proposal included plans to remove marijuana from the controlled substances law, quash criminal records, and allow those serving time for applicable crimes to petition for retrial. The schedule for filing the final version of the sweeping marijuana reform proposal has been pushed back several times, with Schumer promising to submit it sometime before the August recess, and apparently delivering on the promise.

RELATED: These are the senators pushing Biden to legalize cannabis

The US Cannabis Council welcomed CAOA’s presentation. “The introduction of sweeping cannabis reform legislation in the Senate by none other than the Majority Leader himself is the strongest sign yet that America’s cannabis prohibition is nearing its end,” said Steven Hawkins, CEO of the US Cannabis Council.

“We applaud the authors of the CAO Act for their leadership and vision. We are reviewing the updated legislative text and look forward to substantive discussions on how best to move from the illegal market to a fully regulated, national market with opportunities for all,” Hawking continued.

“The detailed political talks surrounding the CAO law should not distract us from its historical nature. At the same time, the ambitious and far-reaching nature of the bill shouldn’t stop Congress from moving forward with limited but crucial reforms like Deletion and the SAFE Banking Act that are imminently within reach.”

RELATED: Why Chuck Schumer might trade in cannabis banking sooner rather than later

What’s next: While most industry experts doubt the measure would reach President Joe Biden’s desk, as it faces strong opposition from Republican senators, they agree it’s an important step toward sweeping reform.

Reports that long-awaited legislation would be introduced this week also sent cannabis stocks higher on Monday. Introducing the bill on Thursday could potentially have the same effect.

SAFE Banking appears to have broader support

The bill was introduced before the Senate Judiciary Subcommittee on Crime and Terrorism, chaired by Booker, whose meeting is scheduled for July 26, entitled “Federal Cannabis Decriminalization: Steps Necessary to Address Previous Harms.”

Currently, most industry experts agree that the SAFE Banking Act, a bill that would give marijuana companies access to banking services, has the best chance of passing the Senate and landing on Biden’s desk.

So far, the SAFE Banking Act has made it through the US House of Representatives six times in the last three years, and lately the Senate has been under a lot of pressure to approve it.

This article originally appeared on Benzinga and has been republished with permission.