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Senate Version of Marijuana Legalization Bill May be Unveiled in Coming Days

Investors in marijuana stocks may be given something to lift their spirits prior to Congress’s summer recess. There are reports that senators will finally introduce the Cannabis Administration and Opportunity Act (CAOA) bill. The House of Representatives has already introduced and passed its own version to legalize marijuana nationally. The Senate bill is expected to be somewhat more restrictive and have other small differences; both bills contain what the authors view as social justice measures.

It’s been a year since Senate Majority Leader Chuck Schumer (NY), Senate Finance Committee Chairman Ron Wyden (OR) and Sen. Cory Booker (NJ) first released a draft version of CAOA detailing proposed legislation to end federal cannabis prohibition. Senator Schumer has reported that the final bill to be voted on will be made public the last week in July.

There is a push to introduce the Senate’s bill ahead of the August recess (August 8 – September 5).

The final introduction of the CAOA has had many delays as the sponsors have worked to build in what they deem important while trying to move forward with something with bipartisan support. One expected aspect is that Senator Schumer has wanted the CAOA to specifically seek to build barriers so large alcohol and tobacco companies so they can’t easily overtake the industry.

Any change in details to the bill since it was first released last year is still not public. But it’s expected to place importance on removing cannabis from the Controlled Substances Act, impose a federal tax on marijuana sales, favor groups that have been hurt by what are seen as harsh laws, and provide a path to relief for those who have faced federal cannabis convictions.

Once the measure is introduced, its road to passage is still not straightforward. The measure would require a 60-vote threshold to pass in the Senate. While the bill is expected to have bipartisan support, the more conservative senators may be inclined to vote the bill down. Currently, there are senators from each of the major political parties that are non-committal.

Senator Schumer seems intent on bringing the bill to the floor for a vote. If it passes, the House of Representatives and the Senate would likely meet to work out differences between the
versions. If they agree on one piece of legislation, they then hope the president signs it into law.

The year-long push by Senate leadership to get the legalization bill to the floor has frustrated businesses, banks, patients, and some states that have wanted to see the reform move quickly. Without approval on the national level, states may legalize cannabis products, but entities that rely on Federal charters, such as banks and even the Post Office, put themselves at risk if they do business within any part of the industry that is unlawful on the federal level.

There are serious questions about the prospects of passing any broad legalization bill in the current congressional climate, especially given the steep Senate vote threshold. Then another looming unknown is what President Joe Biden would do if a legalization measure does ultimately arrive at his desk.

Despite supermajority support for the reform within Biden’s political party, the president has held a firm opposition to adult-use legalization. Instead, he has supported modest changes such as decriminalization, rescheduling and continuing to allow states to set their own policies.

Dr. Rahul Gupta, Director of National Drug Control Policy, sometimes called “the White House drug czar,” recently said that the Biden administration is “monitoring” states that have legalized marijuana to inform federal policy, and recognize the failures of the current prohibitionist approach.

Paul Hoffman

Managing Editor, Channelchek

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