Cannabis Administration And Opportunity Act, otherwise known as the CAOA Act is Finally Introduced!

• • CAOA full text can be found HERE
• • Summary of introduced CAOA can be found HERE

The much awaited cannabis legalization bill presented by Senate Majority Leader Chuck Schumer has finally been officially introduced.

The Cannabis Administration And Opportunity Act, otherwise known as the CAOA Act has been eagerly anticipated. And after several delays, it has now been presented to the US House.

The CAOA Act is sponsored by a trio of Democrat Senators, Majority Leader Chuck Schumer of New York, Senate Finance Committee Chair Ron Wyden of Oregon, and Cory Booker of New Jersey. There were also two co-sponsors, Democrat Senators, Patty Murray of Washington, and Gary Peters of Michigan.

The CAOA, if passed, will de-schedulize cananbis, or in other words, it would officially remove cannabis from the federal list of controlled substances. It would then put legalization control into state hands, so each state may set up their own regulations.

The CAOA will automatically expunge federal cannabis convictions and encouraging states to do the same.  

The bill establishes strong cannabis health and safety standards, aimed at ensuring cannabis products are licensed and consistently labeled, keeping cannabis out of the hands of those under 21, and ensuring Veterans Affairs and Indian Health Services are able to provide assistance to their patients regarding cannabis.

It also attempts to protect public safety by implementing programs to combat illicit market sales, by establishing strong rules, establishing law enforcement grants, and establishing a new effort to combat driving under the influence.

The bill would also create a new federal definition for hemp that would increase the permissible THC by dry weight to 0.7 percent from the current 0.3 percent.

It requires funding into researching the impacts of cannabis on public health and safety, establishing clinical trials for the VA, and grants to increase cannabis research at colleges and universities, with a particular focus on those serving minorities.

The bill ends federal benefit discrimination for cannabis use in areas like federal housing and student loans, and removes all federal employee pre-employment and random drug testing for cannabis, with the exception of some positions such as national security or law enforcement, commercial transportation, and other safety positions.

The CAOA also eliminates cannabis being under the dreaded tax code 280E, which is the tax code that currently blocks the cannabis industry from taking any ‘normal’ business expenses on their taxes.

Jurisdiction over cannabis would be moved away from the DEA, and to the FDA and the Alcohol and Tobacco Trade Bureau. They would establish a regulatory system similar to alcohol and tobacco.

As for the downside, which of course was expected, there will also be a federal excise tax on cannabis products. For smaller companies, that excise tax would be 5% to begin, and increase to 12.5%. For larger companies, that excise tax would start at 10%, and increase to 25%.

There were many statements of support from the sponsors, extolling the benefits of the new proposed legislation. But perhaps the one that summed it up best was from one of the Sponsors, Senate Finance Committee Chair and Democrat Senator from Oreon, Ron Wyden. He said,
“It’s no longer a question of ‘if cannabis should be legal.’ The states are moving ahead, and not only do the overwhelming majority of American people support legalization, they now live in a state where some form of cannabis is legal,”  “I’d ask my colleagues in the Senate to think long and hard about what keeping the federal government stuck in yesteryear means for public health and safety. By failing to act, the federal government is empowering the illicit cannabis market, it’s ruining lives and propping up deeply rooted racism in our criminal justice system, it’s holding back small cannabis businesses from growing and creating jobs in their communities. Cannabis legalization is here, and Congress needs to get with the program.”

The CAOA is just a proposed bill, of course, and it still has to pass many hurdles among the Senate, including a Republican wall unwilling to cross party lines, and even some Democratic Senators still unsure about legalization.

But this is a great time to get discussions going, and take action. Now is the time to speak out to your own State representatives and ask them to support the will of the majority of people and get cannabis legalized now.

​
• CAOA text can be found HERE
• Summary of introduced CAOA can be found HERE
• Summary of revisions to the CAOA discussion draft can be found HERE

---