[DocTim420]

Hmmm, it may not be perfect, but it is a start.

6 ways new federal bills would protect California cannabis consumers, businesses
By BROOKE EDWARDS STAGGS / STAFF WRITER

Federal legislators are working on a cluster of proposed laws aimed at easing the growing conflict between state and federal marijuana laws, with a number of protections and new regulations that could impact cannabis consumers and businesses in California.

Cannabis remains illegal at the federal level, though medical marijuana is now legal in 28 states and recreational cannabis is allowed in eight. So even though state law says Californians can now smoke weed and give some to a friend, they still risk criminal prosecution by federal authorities and can be denied benefits such as subsidized housing. People who own cannabis-related businesses also face federal raids and can’t access most banking services or claim standard tax deductions. And researchers also have a tough time getting access to study cannabis because the plant remains illegal under federal law.

Oregon Democrats Sen. Ron Wyden and Rep. Earl Blumenauer aim to change all of that in one fell swoop with the “Path to Marijuana Reform,” a package of bills introduced Thursday in both houses.

Also included in the package is the reintroduction of legislation from Rep. Jared Polis, D-Colorado, to regulate marijuana like alcohol.

The bills would remove marijuana from a national registry of controlled substances and add a slew of new protections for consumers and industry workers. Wyden said the new rules could spur industry growth and investment, which have been hampered by the looming threat of a federal crackdown – a threat that's gained traction since long-time marijjuana opponent Jeff Sessions became Attorney General.

The bills would also create a new federal tax on all cannabis products that would start at 10 percent and escalate to 25 percent. And marijuana businesses would be required to get federal permits to operate, with new rules on advertising, labeling and more.

The proposed bills drew quick praise from supporters of marijuana legalization, who argued that such reforms will bring federal marijuana laws more in line with public opinion and state policies.

“States are clearly realizing the benefits of regulating marijuana, and we are glad to see a growing number of federal policy makers taking notice,” said Aaron Smith, executive director of the National Cannabis Industry Association.

Opponents of legal marijuana expressed concern about Wyden and Blumenauer’s legislation, claiming the emerging industry is focused on profits and not public health.

“We need to end, not expand, the special interest big marijuana lobby,” said Kevin Sabet, a former White House drug policy senior adviser who now heads Smart Approaches to Marijuana.

Most policies in the bills have been proposed previously in some form, though they’ve never gotten past initial committee hearings. And that was before Republicans controlled both the House and the Senate.

But Wyden and Blumenauer pointed out in a joint statement that public support for cannabis legalization has never been higher, with the Democrats’ package of bills drawing early support from both sides of the aisle.

Here are six ways the federal bills would impact Californians and residents in other legal weed states if they become law.

1. Add criminal protections: Federal agents could no longer arrest people who are complying with their state’s cannabis laws and slap them with fines or jail time. The feds also couldn’t raid state-legal pot shops and seize their assets. No one could be deported or denied entry to the country for consuming weed in state where it’s legal. And Native American tribes would be protecting from punishment under federal marijuana laws.

2. Open bank access: Banks and credit card companies that handle marijuana funds would get immunity from federal criminal charges. That should help the industry move away from operating all in cash, since financial institutions would no longer have to worry about being penalized for money laundering if they take on cannabis clients.

3. Remove obstacles for research: A new process would make it easier for researchers to study medical marijuana by reducing approval wait times, costly security measures and layers of review that experts say stifle the number and quality of studies now taking place. And once researchers get approval, it would be easier for them to access marijuana for use in their studies. That should increase the volume of rigorous trials involving cannabis.

4. Eliminate tax restrictions: Marijuana retailers would be able to claim tax deductions and credits like any other business. That’s because the bills would make an exception for marijuana in IRS tax rule 280E, which says businesses dealing in Schedule I or II substances can’t write off common expenses such as rent, utilities or advertising. That should save businesses significant money each year.

5. Clear criminal records: Anyone with a federal charge for a marijuana-related activity that was legal in their state at the time or who was charged with possessing an ounce or less of marijuana could petition to have their records cleared. California’s Proposition 64 included a similar provision, though it could only apply to state charges.

6. Allow for federal benefits: People in legal weed states could no longer be drug tested for marijuana when applying for a federal job or denied access to subsidized housing. College students couldn’t be turned down for financial aid because they have minor marijuana offenses on their record. And health care workers at Veteran Affairs clinics could recommend medical marijuana to veterans.

And from The Cannabist--
Source: https://www.thecannabist.co/2017/03/3...ndustry/76346/

Bipartisan “Path to Marijuana Reform” bills introduced to decriminalize, protect, regulate cannabis industry

Three marijuana-related bills address issues such as taxation, banking, civil forfeiture, de-scheduling, decriminalization, research, individual protections and regulation

By Alicia Wallace, The Cannabist Staff

U.S. lawmakers on Thursday introduced a package of marijuana reform bills aimed at protecting and preserving existing state-based programs while creating a framework for the federal regulation of cannabis.

Sen. Ron Wyden, D-Oregon, and Rep. Earl Blumenauer, D-Oregon, announced the “Path to Marijuana Reform,” a bipartisan package of three related bills that address issues such as taxation, banking, civil forfeiture, descheduling, decriminalization, research, individual protections and regulation. Included in the package is the reintroduction of legislation from Rep. Jared Polis, D-Colorado, to regulate marijuana like alcohol.

“This is the most comprehensive package that’s (yet) been advanced,” Blumenauer told The Cannabist. While some other marijuana-related bills have been introduced to get at portions of the issue, “this is an opportunity to have the big picture,” he said.

The Path to Marijuana Reform includes the following bills, according to the announcement from Wyman and Blumenauer:

The Small Business Tax Equity Act — Create an exception to Internal Revenue Code section 280E that would allow businesses compliant with state laws to claim deductions and credits associated with the sale of marijuana. Currently, under 280E, people and businesses cannot claim deductions or credits for the sale of Schedule I or Schedule II substances. Sen. Rand Paul, R-Kentucky, is a cosponsor of Wyden’s Senate bill and Rep. Carlos Curbelo, R-Florida, is sponsoring companion legislation in the House.

Responsibly Addressing the Marijuana Policy Gap Act — Remove federal penalties and civil asset forfeiture for individuals and businesses complying with state law; ensure access to banking, bankruptcy protection, research and advertising; expunge the criminal records for certain marijuana-related offenses; end requirement for residents of marijuana-legal states to take a marijuana drug test for positions in the federal civil service; and ease barriers for medical marijuana research.

Marijuana Revenue and Regulation Act — Remove marijuana from the Controlled Substances Act; impose an excise tax regime on marijuana products; allow for the permitting for marijuana businesses; and regulate marijuana in a manner similar to alcohol. Polis is sponsoring a portion of this legislation in the House, the Regulate Marijuana Like Alcohol Act.

The legislative package is the latest in a series of marijuana law reform put forth by federal legislators. Blumenauer and Polis launched the inaugural Congressional Cannabis Caucus earlier this year with Rep. Dana Rohrabacher, R-California, and Rep. Don Young, R-Alaska.

The caucus members have said they intend to advance congressional action on cannabis.

A couple of other marijuana-related bills have been introduced thus far.

Blumenauer said he’s hopeful the legislation could move forward.

The bills likely will be tucked into larger legislation, allowing for the opportunity for a wide variety of people to be engaged, sign onto reform areas of interest and suggest changes of their own, he said.

“And I’m optimistic these are things that can happen, maybe even this year,” Blumenauer said.

Additionally, lawmakers say they plan to introduce the Rohrabacher-Blumenauer Medical Marijuana Amendment and the McClintock-Polis Marijuana Amendment, spending-bill riders that would prevent the Drug Enforcement Administration from using funds to prosecute individuals in medical marijuana states and recreational marijuana states, respectively.

The Path to Marijuana Reform was quickly lauded by pro-marijuana activists from organizations such as the National Organization for the Reform of Marijuana Laws and the Marijuana Policy Project.

This is commonsense legislation that will eliminate the growing tension between federal and state marijuana laws,” Robert Capecchi, director of federal policies for the Marijuana Policy Project, said in a statement. “Voters and legislatures are rolling back antiquated state marijuana prohibition policies, and it’s time for Congress to step up at the federal level. States are adopting laws designed to improve public safety by replacing the illegal marijuana market with a tightly regulated system of production and sales. The federal government should be working to facilitate that transition, not hinder it.”

Opponents of marijuana legalization, however, expressed concern about the measures.

Kevin Sabet, a former White House drug policy senior adviser who now heads Smart Approaches to Marijuana, a D.C.-based organization that opposes the legalization and commercialization of marijuana, told The Cannabist that expanding legalization would have negative consequences.

“While we don’t want to see folks locked up or given criminal records for smoking pot, we support federal laws against marijuana,” Sabet wrote in an e-mail. “We need to end, not expand the special interest big marijuana lobby. We can’t ignore the fact that today’s legalized marijuana — and the accompanying industry — is damaging to public health. States that have legalized marijuana continue to see a black market for the drug, increased rates of youth drug use, continued high rates of alcohol sales and interstate trafficking.”

Sabet referenced a recent news report out of Oregon that the state remains a hot spot for black market marijuana, despite legalization efforts.

“Ultimately, marijuana legalization is all about making a small number of investors very rich,” he said. “Many of those trying to change these laws are taking money from the same special-interest groups that put profits over public health.”

Source: https://www.ocregister.com/articles/f...s-cluster.html

[DocTim420]

Source: https://www.finance.senate.gov/imo/m...%20Summary.pdf

EXECUTIVE SUMMARY OF THE PATH TO MARIJUANA REFORM
INTRODUCED BY SENATOR RON WYDEN AND CONGRESSMAN EARL BLUMENAUER

The Path to Marijuana Reform, introduced today by Senator Wyden and Congressman Blumenauer is a
package of three bills that pave the way for responsible federal regulation of the legal marijuana
industry, and provide certainty for state-legal marijuana businesses which operate in nearly every state
in the U.S.

On November 8, 2016, voters in states across the country acted to end the prohibition of marijuana.
Voters in California, Maine, Massachusetts, and Nevada approved initiatives to legalize adult use of
marijuana, and voters in Arkansas, Florida, Montana, and North Dakota approved initiatives to provide
or expand access to medical marijuana. Today, more than 20 percent of Americans live in states that
permit adult use of marijuana, and 95 percent of Americans have access to some form of legal
marijuana. These changes represent a dynamic shift in public opinion. In 1969, only 12 percent of
Americans approved of legal marijuana. Today, 60 percent believe marijuana should be legal.

Despite legalization under state law and broad public support for marijuana legalization, marijuana
remains illegal under federal law. Federal agents may arrest marijuana consumers in states where
marijuana is legal, and individuals complying with state law may be subject to penalties and jail time
under federal law. Marijuana consumers may be barred from public housing or federal financial aid for
higher education, and non-citizens may be deported or denied entry into the United States.

Marijuana businesses face even more daunting obstacles. Retailers, researchers, healthcare providers,
and marijuana producers complying with state law may face penalties, jail time, and asset forfeiture
under federal law. In addition, marijuana businesses have difficulty obtaining bank loans, access to bank
accounts, bankruptcy protection, and goods and services like building rental, scientific testing, payment
processing, and even legal representation. The IRS also imposes burdensome tax penalties on marijuana
businesses, which do not apply to any other businesses legal under state law.

In the face of these challenges, the state-legal marijuana business sector continues to grow. In 2016 the
state-legal marijuana industry produced an estimated $7.2 billion in economic activity, with marijuana
businesses paying billions of dollars in federal income tax. This industry is expected to produce nearly
300,000 jobs by 2020 and grow to $24 billion by 2025. It is an undeniable fact that the legal marijuana
industry is an economic driver in the United States. And every public road, bridge, school, and hospital
is paid for, in part, by income taxes paid by marijuana businesses—legal under state law, but still
prohibited by the federal government.

The Path to Marijuana Reform includes three bills that pave the way for responsible federal regulation
of the legal marijuana industry, including:

-Small Business Tax Equity Act
This legislation would repeal the tax penalty that singles out state-legal marijuana businesses
and bars them from claiming deductions and tax credits.
https://www.finance.senate.gov/imo/m...%20Summary.pdf

- Responsibly Addressing the Marijuana Policy Gap Act
This legislation would reduce the gap between Federal and State law by removing federal
criminal penalties and civil asset forfeiture for individuals and businesses acting in compliance
with state law. It would also reduce barriers for state-legal marijuana businesses by ensuring
access to banking, bankruptcy protection, marijuana research, and advertising. It would protect
individual marijuana consumers in states that have legalized marijuana, by providing an
expungement process for certain marijuana violations, ensuring access to public housing and
federal financial aid for higher education, and ensuring that a person cannot be deported or
denied entry to the U.S. solely for consuming marijuana in compliance with state law. Finally, it
would remove unfair burdens by ensuring veterans have access to state-legal medical
marijuana, and protecting Native American tribes from punishment under federal marijuana
laws.
https://www.finance.senate.gov/imo/m...%20Summary.pdf

- Marijuana Revenue and Regulation Act
This legislation would responsibly deschedule, tax, and regulate marijuana. It would impose an
excise tax on marijuana products similar to current federal excise taxes on alcohol and tobacco,
escalating annually to a top rate equal to 25 percent of the sales price. Marijuana producers,
importers, and wholesalers would be required to obtain a permit from the Department of
Treasury, and the marijuana industry would be regulated in a manner similar to alcohol. Strict
rules would prohibit sale or distribution of marijuana in states where it is illegal under state law.
https://www.finance.senate.gov/imo/m...%20Summary.pdf

[eyes]

Only 25 percent tax? Geesh. Incredible. Why not pardon people for any marjuana offense in the state of California? Why is it that it has limits of an ounce or less attached to it. Seems a bit predjudicial wouldnt you say?

[DocTim420]

From the Marijuana Revenue and Regulation Act pdf--

Cigarettes are generally taxed at a rate equal to $1.01 per pack, with similar rates applying to other tobacco
products. Beer is generally subject to a tax of $18 per barrel, wine is generally subject to a tax of $1.07 per gallon,
and spirits are generally subject to a rate of $13.50 per proof gallon.

The marijuana excise tax regime would become effective within 180 days of enactment of this Act.
Marijuana sold during the first two calendar years would be subject to a tax equal to ten percent of the
sales price. Marijuana sold during the third, fourth and fifth years would be subject to a rate of 15
percent, 20 percent and 25 percent, respectively. Marijuana sold during the sixth and subsequent years
would be subject to a per-ounce rate equal to 25 percent of the prevailing price for marijuana in the U.S.
during the preceding year.