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House Leaders Propose Changes To Federal Marijuana Legalization Bill Up For Floor Vote This Week

Updated: Dec 10, 2020

Published Nov. 30, 2020 by By Kyle Jaeger

A key House committee has scheduled a Wednesday hearing to advance a bill to federally legalize marijuana toward a full floor vote, which could then happen as soon as Thursday. Meanwhile, leaders in the chamber are proposing an amendment that would make several changes to the cannabis legislation.


Among the most significant revisions would be to the tax-related provisions of the bill.

The Rules Committee’s move to take up the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act follows Majority Leader Steny Hoyer (D-MD) announcement that the chamber would be holding a floor vote on the bill before the end of the year.

Judiciary Committee Chairman Jerrold Nadler (D-NY), the lead sponsor of the bill, transmitted it to Rules with the series of modifications—many of them technical in nature. But beyond the tax changes, the newly proposed language also reaffirms the regulatory authority of certain federal agencies such as the Food and Drug Administration (FDA) and clarifies that cannabis can still be included in drug testing programs for federal workers.

Other members of the House are likely to file proposed amendments as well, though the Democratic majority of the Rules panel will determine which ones can be made in order for floor votes later this week.


As originally drafted, the legislation would have imposed a five percent tax on marijuana products, revenue from which would be used in part to fund a grant program to support communities disproportionately impacted by the war on drugs. In Nadler’s amendment, that language is being removed and replaced with text that more closely reflects a separate descheduling bill, the Marijuana Revenue and Regulation Act.


The modified tax provisions of the MORE Act would make it so cannabis would be federally taxed at five percent for the first two years after implementation and then increased by one percent each year until reaching eight percent. After five years, taxes would be applied to marijuana products based on weight rather than price.


At its core, the MORE Act would federally deschedule cannabis from the Controlled Substances Act and expunge the records of those with prior marijuana convictions. The descheduling provisions would be retroactive.


The bill would also create a pathway for resentencing for those incarcerated for marijuana offenses, as well as protect immigrants from being denied citizenship over cannabis and prevent federal agencies from denying public benefits or security clearances due to its use.

A new Cannabis Justice Office under the Justice Department would be responsible for distributing funds providing loans for small cannabis businesses owned and controlled by socially and economically disadvantaged individuals. The bill also seeks to minimize barriers to licensing and employment in the legal industry.


While the bill still calls for the establishment of a Community Reinvestment Grant Program, the new leadership amendment would remove a line calling for it to specifically fund “services to address any collateral consequences that individuals or communities face as a result of the War on Drugs.”


Tax dollars appropriated to that program would instead more generally go to job training, legal aid for criminal and civil cases such as those concerning marijuana-related expungements, literacy programs and youth recreation and mentoring services, among other programs.


The definition of people impacted by the drug war who could be eligible for aid is also being changed to narrow the scope. At first it included those who have “been arrested for or convicted of the sale, possession, use, manufacture, or cultivation of cannabis or a controlled substance,” but now it only extends to marijuana and not other illicit drugs.


Other changes included in Nadler’s latest revision include one requiring FDA and the U.S. Department of Health and Human Services (HHS) to hold public meetings on “regulation, safety, manufacturing, product quality, marketing, labeling, and sale of products containing cannabis or cannabis-derived compounds” within one year of the bill’s enactment.

The language is also being updated to reflect the current number of states where marijuana is legal for medical or recreational purposes, clarify that FDA and HHS maintain their authorities to regulate cannabis products and stipulate that federal agencies can continue to include cannabis in employee drug testing. A conforming amendment would clarify that the U.S. Department of Transportation could continue to require drug testing for workers in safety sensitive positions.


The revised version also stipulates that funding can be made available to “connect patients with substance use disorder services” and apply to “individuals who have been arrested for or convicted of the sale, possession, use, manufacture, or cultivation of a controlled substance other than cannabis (except for a conviction involving distribution to a minor).”

The proposal also deletes from the definition of substance misuse treatment language stating that it would be an “evidence-based, professionally directed, deliberate, and planned regimen including evaluation, observation, medical monitoring, harm reduction, and rehabilitative services and interventions such as pharmacotherapy, mental health services, and individual and group counseling, on an inpatient or outpatient basis, to help patients with substance use disorder reach remission and maintain recovery.”


There are also a number of technical and conforming changes in the proposal, as well as the removal of the word “most” from “individuals most adversely impacted by the War on Drugs” when it comes to determining eligibility for the new programs and services created by the legislation.