Senate Democrats introduced a bill last week that would lift the federal ban on cannabis and remove the drug from the federal list of controlled substances.
The Cannabis Administration and Opportunity Act was introduced by Senate Majority Leader Chuck Schumer (D-N.Y.), Senate Finance Committee Chair Ron Wyden (D-Ore.), and Sen. Cory Booker (D-N.J.).
Under the bill, cannabis would be regulated and taxed similar to alcohol and tobacco. CAOA would eliminate the tax code’s restriction on cannabis businesses claiming business expense deductions and implement an excise tax on cannabis products. Cannabis use would be illegal for anyone under the age of 21. The bill would establish grants to help small law enforcement agencies hire and train officers, and establish a new initiative at the National Highway Traffic Safety Administration to prevent impaired driving. CAOA would automatically expunge federal cannabis convictions and encourage states to do the same.
“The legislation establishes a federal regulatory framework to protect public hSenate Democrats introduced a bill last week that would lift the federal ban on cannabis and remove the drug from the federal list of controlled substances. ealth and safety, prioritizes restorative and economic justice to help undo the decades of harm caused by the failed War on Drugs, ends discrimination in the provision of federal benefits on the basis of cannabis use, provides major investments for cannabis research, and strengthens worker protections,” the Senators wrote. “By decriminalizing cannabis at the federal level, CAOA also ensures that state-legal cannabis businesses or those in adjacent industries will no longer be denied access to bank accounts or financial services simply because of their ties to cannabis.”
The introduction of the bill, which is being cosponsored by Sen. Patty Murphy, (D-Wash.), and Gary Peters, (D-Mich.), comes after the U.S. House of Representatives included the Secure and Fair Enforcement Banking Act in the 2023 National Defense Authorization Act passed earlier this month. The House has now passed the SAFE Banking Act seven times, but Senate approval has been elusive. The Senate has yet to take up its version of the defense bill but plans to in September, according to Politico.
According to the ICBA, CAOA lacks bipartisan support and will likely not pass the Senate. However, the bill could play a role in advancing the SAFE Banking Act in the upper chamber.