Legislation to end the federal prohibition of cannabis has been submitted in the U.S. Senate by Senator Ron Wyden (D-OR). S. 420’s companion proposals, including H.R. 420, were submitted in the House last week by Representative Earl Blumenauer (D-OR).
“The American people have elected the most pro-cannabis Congress in American history and significant pieces of legislation are being introduced,” said Blumenauer. “The House is doing its work and with the help of Senator Wyden’s leadership in the Senate, we will break through.”
“I introduced S.420, my bill to legalize and responsibly regulate and tax marijuana,” Wyden tweeted on February 8. “It’s time to bring our country’s marijuana policies into the 21st century, and my legislation is the way to do it.”
The first one, Small Business Tax Equity Act, proposes that legal cannabis businesses should be allowed to claim tax deductions just like any other small business. Currently, they may not claim tax deductions or credits because cannabis remains a Schedule I substance under the Controlled Substances Act. This amendment was enacted in 1982 after a narcotics dealer claimed expenses associated with the sale of illegal drugs on his taxes. Now that more than half of the states in the nation have legalized cannabis for either medicinal or recreational purposes, those state-legal businesses deserve to be able to operate as such.
The second, Responsibly Addressing the Marijuana Policy Gap Act, permits states to determine their own cannabis laws, thereby “reducing the gap between federal and state laws.” As long as individuals and businesses are operating under state law, this proposal would remove the risk of federal criminal penalties. It also allows legal cannabis businesses to have access to normal banking services, permits U.S. veterans access to medical marijuana, and protects the rights of Native American tribes to grow and sell marijuana on tribal land.
The third bill in the legislative package is called the Marijuana Revenue and Regulation Act. This proposal would remove cannabis from the Controlled Substances Act, effectively de-scheduling it. It also seeks to tax and regulate cannabis products in the same way that alcohol and tobacco currently are, imposing an excise tax on the sale of cannabis. Federal permits from the Department of Treasury would also be issued to cannabis producers, importers, and wholesalers.
“The federal prohibition of marijuana is wrong, plain and simple. Too many lives have been wasted, and too many economic opportunities have been missed,” Wyden said in a press release. “It’s time Congress make the changes Oregonians and Americans across the country are demanding.”