The push for cannabis legalization in the United States has found an unlikely ally in Ohio - Republican Representative David Joyce. Aged 66, the co-chair of the Congressional Cannabis Caucus has announced plans to introduce a bill that could significantly alter the Controlled Substances Act. If successful, this bill would exclude state-legal marijuana from being classified as a Schedule I drug, a classification that currently places it alongside substances such as heroin. However, cannabis grown and produced outside the state-sanctioned market would still be considered illegal at the federal level. This provision allows states who choose not to legalize cannabis to maintain their prohibitionist stance.
The bill, tentatively called the "STATES 2.0 Act," is a revised version of the STATES Act that Joyce introduced in 2019. The introduction of this new bill is expected imminently, according to Joyce's staff. Joyce passionately argues that states and Native American tribes are tired of the federal government's inconsistent approach to cannabis regulation. With over 40 states and numerous tribes expressing a desire for the federal government to respect their individual cannabis laws, Joyce hopes his legislation will address these concerns.
Cannabis legalization enjoys widespread support across the United States. Currently, 38 states, plus Washington, D.C., and Puerto Rico, have some form of state-regulated marijuana market. Twenty-four of these allow adult-use, and in Joyce's home state of Ohio, a recent ballot measure saw the legalization of adult-use marijuana. Additionally, 10 more states permit the use of products containing CBD and small amounts of THC, the psychoactive compound in marijuana. Only Idaho and Nebraska have not sanctioned any kind of marijuana use at the state level [3].
The STATES 2.0 Act aims to align federal and state law by respecting state rights to marijuana legalization. It seeks to deschedule state-legal marijuana, maintaining the illegality of marijuana produced outside of regulated markets. This approach mirrors the legalization of sports betting, where the federal government lifted a national ban and allowed states to enact their own laws in 2018. Joyce's bill challenges the existing disconnect between federal and state laws on cannabis.
A spokesperson for Joyce explains that the bill would legitimize each state's decision regarding cannabis. If a state chooses to maintain prohibition, the federal government would enforce this, whereas if a state decides to legalize, the federal government would provide regulation.
Currently, the Drug Enforcement Administration (DEA) enforces marijuana prohibition. However, the DEA has largely turned a blind eye to state markets, contributing to disorder and a burgeoning illicit market. Last year, President Joe Biden asked the Department of Health and Human Services and the DEA to consider rescheduling marijuana. The HHS recommended that it be classified as a Schedule III drug, indicating a low to moderate potential for physical or psychological dependence. The DEA has not yet released its decision.
Under Joyce's proposed bill, the Alcohol and Tobacco Tax and Trade Bureau (TTB) would regulate cannabis, while the Food and Drug Administration would oversee cannabis-infused food and products making medical claims. The TTB would issue permits for state-legal companies, collect taxes, track and trace inventory, and enforce penalties, much as it does for the spirits industry. The bill also proposes a federal excise tax to fund the federal regulation of marijuana, but the exact rate has not been disclosed.
The STATES 2.0 Act addresses two significant challenges facing the cannabis industry: the federal tax rate imposed on marijuana companies and the prohibition of interstate commerce. If passed, the bill would exempt state-legal cannabis from the punitive 280e tax code, which currently applies to Schedule I and II drugs. The bill would also not outlaw interstate commerce, instead allowing states to determine how products are sold across and within their borders.
Despite the strong support for cannabis legalization among the American public, Congress has yet to pass significant drug law reforms. Senate Majority Leader Chuck Schumer and Senators Ron Wyden and Cory Booker introduced a legalization bill in July 2021, but it has not yet been brought to a vote. Similarly, Representative Nancy Mace introduced a bill to end federal marijuana prohibition in November 2021, but this has also not been voted on. The SAFE Banking Act, designed to facilitate access to mainstream financial services for cannabis companies, has not been passed by both chambers of Congress for several years.
Andrew Freedman, executive director of the Washington, D.C.-based nonprofit Coalition for Cannabis Policy, Education, and Regulation, believes that the STATES 2.0 Act could prompt Republicans and staunch prohibitionists to reform federal law. He argues that even though over half of America now has access to adult-use cannabis, the issue remains divisive. Freedman suggests that the STATES 2.0 Act, which offers something for states opposed to legalization, has a unique political power that could potentially appeal to Republicans and help shift the federal government's current stance on cannabis.
The bill, tentatively called the "STATES 2.0 Act," is a revised version of the STATES Act that Joyce introduced in 2019. The introduction of this new bill is expected imminently, according to Joyce's staff. Joyce passionately argues that states and Native American tribes are tired of the federal government's inconsistent approach to cannabis regulation. With over 40 states and numerous tribes expressing a desire for the federal government to respect their individual cannabis laws, Joyce hopes his legislation will address these concerns.
Cannabis legalization enjoys widespread support across the United States. Currently, 38 states, plus Washington, D.C., and Puerto Rico, have some form of state-regulated marijuana market. Twenty-four of these allow adult-use, and in Joyce's home state of Ohio, a recent ballot measure saw the legalization of adult-use marijuana. Additionally, 10 more states permit the use of products containing CBD and small amounts of THC, the psychoactive compound in marijuana. Only Idaho and Nebraska have not sanctioned any kind of marijuana use at the state level [3].
The STATES 2.0 Act aims to align federal and state law by respecting state rights to marijuana legalization. It seeks to deschedule state-legal marijuana, maintaining the illegality of marijuana produced outside of regulated markets. This approach mirrors the legalization of sports betting, where the federal government lifted a national ban and allowed states to enact their own laws in 2018. Joyce's bill challenges the existing disconnect between federal and state laws on cannabis.
A spokesperson for Joyce explains that the bill would legitimize each state's decision regarding cannabis. If a state chooses to maintain prohibition, the federal government would enforce this, whereas if a state decides to legalize, the federal government would provide regulation.
Currently, the Drug Enforcement Administration (DEA) enforces marijuana prohibition. However, the DEA has largely turned a blind eye to state markets, contributing to disorder and a burgeoning illicit market. Last year, President Joe Biden asked the Department of Health and Human Services and the DEA to consider rescheduling marijuana. The HHS recommended that it be classified as a Schedule III drug, indicating a low to moderate potential for physical or psychological dependence. The DEA has not yet released its decision.
Under Joyce's proposed bill, the Alcohol and Tobacco Tax and Trade Bureau (TTB) would regulate cannabis, while the Food and Drug Administration would oversee cannabis-infused food and products making medical claims. The TTB would issue permits for state-legal companies, collect taxes, track and trace inventory, and enforce penalties, much as it does for the spirits industry. The bill also proposes a federal excise tax to fund the federal regulation of marijuana, but the exact rate has not been disclosed.
The STATES 2.0 Act addresses two significant challenges facing the cannabis industry: the federal tax rate imposed on marijuana companies and the prohibition of interstate commerce. If passed, the bill would exempt state-legal cannabis from the punitive 280e tax code, which currently applies to Schedule I and II drugs. The bill would also not outlaw interstate commerce, instead allowing states to determine how products are sold across and within their borders.
Despite the strong support for cannabis legalization among the American public, Congress has yet to pass significant drug law reforms. Senate Majority Leader Chuck Schumer and Senators Ron Wyden and Cory Booker introduced a legalization bill in July 2021, but it has not yet been brought to a vote. Similarly, Representative Nancy Mace introduced a bill to end federal marijuana prohibition in November 2021, but this has also not been voted on. The SAFE Banking Act, designed to facilitate access to mainstream financial services for cannabis companies, has not been passed by both chambers of Congress for several years.
Andrew Freedman, executive director of the Washington, D.C.-based nonprofit Coalition for Cannabis Policy, Education, and Regulation, believes that the STATES 2.0 Act could prompt Republicans and staunch prohibitionists to reform federal law. He argues that even though over half of America now has access to adult-use cannabis, the issue remains divisive. Freedman suggests that the STATES 2.0 Act, which offers something for states opposed to legalization, has a unique political power that could potentially appeal to Republicans and help shift the federal government's current stance on cannabis.
