Democrats in the Senate Set to Unveil Bill to Decriminalize Marijuana

The long-shot bid to remove marijuana from the Controlled Substances Act is set to roll out next week. Despite the 38 states decriminalizing medical marijuana use as well as 19 states, in addition to the District of Columbia, for recreational use, marijuana consumption is still illegal at the Federal level.

Although the proposal will face challenges in the Senate, Democrats are set to introduce the bill allowing adult Americans to possess, buy, and use cannabis products up to 10 ounces without having to face criminal charges.

Majority Leader Chuck Schumer of New York along with New Jersey Senator Cory Booker and Senator Ron Wyden of Oregon are working on a similar measure as the 19 states that have legalized recreational marijuana use. Last year, the Senators circulated the draft of the bill and made some changes based on the feedback from Senate committees.

The Cannabis Administration and Opportunity Act aims to remove marijuana from the drugs listed under the Controlled Substances Act. But even if the bill passed as a law, states will still have control over regulations and limitations on production and distribution as well as maintaining them.

The proposed bill establishes a minimum age requirement; users and buyers must be at least 21 years old. It also proposes limits on how much product cannabis dispensaries can sell per transaction, up to 10 ounces at a time. The same applies to any cannabis derivative or the equivalent amount. The bill also suggests that cannabis control should be moved to the Food and Drug Administration.

The draft of the bill also states that grant programs will be established for individuals affected by drug offenses. This would also aid communities and provide financial loans to small businesses owned by underprivileged individuals.

Challenges Ahead for Cannabis Legalization Bill

While states control the production, distribution, and possession of cannabis, states cannot ship marijuana products to other states that have not legalized marijuana. 

According to the draft, this remains prohibited and illegal. But, such states cannot prohibit shipments into other states where cannabis is legal. The final draft will be circulated later and feedback is provided until the first of September.

However, Republican Senator of the Judiciary Committee Chuck Grassley commented that the bill is like putting things in the wrong order and that marijuana needs further research.

Even the founder of Beehouse Partners, a cannabis investment firm, Grey Heyman said that the bill is a lucky shot. While it’s a difficult road to see this bill become law, any progress in the battle as well as the momentum it currently has are still hopeful prospects. 

Michael Boniello, the Managing Director of Poseidon (a private equity firm) also had the same concern. He further said that The Cannabis Administration and Opportunity Act may affect other cannabis-related reforms like the banking act.

The news made the marijuana stocks surge as much as 20%. But for it to become a law, the bill must pass the heavily divided Senate and must be signed by President Joe Biden. The Cannabis Administration and Opportunity Act is different from the MORE Act.