Nancy Mace unveils marijuana legalization bill that would tax drug less than Democratic plans – Washington Examiner

Under legislation introduced in the House on Monday, marijuana would be decriminalized by the federal government, and states would have broad leeway to tax the drug as they would alcohol.

The bill, introduced by South Carolina Republican Rep. Nancy Mace, would impose lower taxes than marijuana legislation introduced by Democratic lawmakers but would not fund social programs or provide loans for cannabis businesses.

Dubbed the States Reform Act, Maces bill would remove marijuana and THC, its main psychoactive compound, from the Controlled Substances Act, effectively decriminalizing the drugs, and allow states to regulate them like alcohol. States could continue their current approach to marijuana decriminalization rather than imposing legalization of medical or recreational use on states.

Mace, a freshman member, said at a Monday press conference that she has been working on the legislation for nine months and categorized it as a compromise bill.

There are pieces of this legislation that bring forth ideas [from] previous Republican bills that have been filed. It also takes into account some of the reforms that Democrats have filed in previous legislation relating to cannabis, Mace said. This legislation, I think, has something good for everyone, whether you are a Democrat or Republican.

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Maces legislation would impose a 3% federal excise tax on cannabis products, lower than the 5% to 8% tax in a Democratic-led bill.

Its got to be under 4% in order to reduce the opportunity for illicit markets or black markets in different states, depending on how theyre legalized, Mace said.

In contrast to Democratic proposals that would use cannabis taxes to fund grants to those affected by the war on drugs and loans to cannabis businesses owned by those from historically disadvantaged communities, Maces creates a Law Enforcement Retraining and Successful Second Chances Fund that would provide grants to community reentry programs, local law enforcement, veteran mental health programs, opioid epidemic responses, and Small Business Administration programs.

Maces bill would expunge convictions on non-violent marijuana use offenses, with the exception of those who had a DUI or could be members of a gang.

It would also create a national age requirement of at least 21 years old for cannabis consumption and change references to marijuana and variations of the word in federal law to cannabis.

Mace filed the bill Monday with five original Republican co-sponsors and said she has been getting great feedback from members in both parties and in both legislative chambers.

Democratic leaders on both sides of the aisle are working on proposals to address the federal prohibition of marijuana, but Republicans who support federal legalization have objected to measures in those that would fund cannabis businesses or programs focused on equity.

Another bill, the Marijuana Opportunity Reinvestment and Expungement Act, would repeal the federal prohibition of marijuana, require federal courts to expunge marijuana convictions, and impose a tax on marijuana and THC products that starts at 5% and rises to 8% over five years. The taxes would fund an "opportunity trust fund, which would provide grants to those affacted by the war on drugs, loans to small businesses in the marijuana industry, and grants for states who implement "equitable" cannabis licensing regulations.

A version of that bill passed in the House in December 2020 with support from five Republicans but did not come up in the then-Republican-controlled Senate.

The bill was reintroduced this year but has not come up for a floor vote. It was approved in September by the House Judiciary Committee with two Republicans, Florida Rep. Matt Gaetz and California Rep. Tom McClintock, joining with Democrats in favor of the legislation.

Senate Majority Leader Chuck Schumer in July unveiled a proposal called the Cannabis Administration and Opportunity Act that incorporates many of the reforms from the MORE Act: Remove the drug from the Controlled Substances Act, expunge marijuana-related convictions, impose a federal excise tax on the drug, and create an opportunity trust fund for grants and loans for individuals in historically disadvantaged communities with cannabis businesses. The bill's final text has not been revealed.

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In previous congresses before Democratic leadership came out in support of fully federally legalizing marijuana, bipartisan legislation proposed not fully eliminating marijuana from the controlled substances act but made it no longer apply to any person adhering to state laws that had legalized or decriminalized the drug.

The House in April also passed the SAFE Banking Act with broad bipartisan support, a bill that prevents federal regulators from penalizing banks for providing banking services to legitimate cannabis-related businesses, though if Maces bill or the others were passed, the legislation would be moot.

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Nancy Mace unveils marijuana legalization bill that would tax drug less than Democratic plans - Washington Examiner