Lably
Skip to content

Marijuana Opportunity Reinvestment and Expungement Act

  • 5 min read
  • 4 chapters

Related on Lably

Through Social justice and Amazon (company)

Introduced by Jerry Nadler on May 28, 2021, the House of Representatives passed the bill for the second time on April 1, 2022.

Provisions

Provisions of the act include:

  • Federal legalization of marijuana by removing marijuana (cannabis) and THC from the Controlled Substances Act and directing expungement of related convictions
  • Expressly prohibits the denial of federal benefits based on a would-be recipient's "use or possession of cannabis, or on the basis of a conviction or adjudication of juvenile delinquency for a cannabis offense". Specifically, it would prohibit the denial of any Federal public benefit including federal loans, federal grants, and contracts as well as benefits such as welfare, unemployment, and food assistance—or any "benefit or protection under the immigration laws". The bill would also bar certain federally-funded programs from declining to provide services or financial assistance to an otherwise eligible small business because the business operates in the cannabis industry.
  • Creates cannabis tax and grant programs funded by a 5% tax on cannabis products (excluding prescription medications derived from cannabis)
    • Community Reinvestment Grant Program providing services for "individuals most adversely impacted by the War on Drugs", including job training, health education, mentoring, literacy programs, and substance use treatment programs
    • Cannabis Opportunity Program providing funds for eligible states to make loans to assist small businesses in the cannabis industry that are owned and controlled by socially and economically disadvantaged individuals
    • An Equitable Licensing Grant Program providing funds for eligible states to develop and implement equitable cannabis licensing programs that "minimize barriers to cannabis licensing and employment for individuals most adversely impacted by the War on Drugs
  • Directs the Bureau of Labor Statistics to gather demographic data about cannabis business owners and employees

According to USA Today, "[t]he trust funds the Act would create include the Community Reinvestment Grant, which would provide funding for services such as job training, re-entry services and legal aid; the Cannabis Opportunity Grant, which would provides funds to assist small businesses in the pot industry; and the Equitable Licensing Grant, which minimizes barriers to gain access to marijuana licensing and employment for those most impacted by the so-called war on drugs." States would maintain their own laws regarding the substance, including whether to legalize it locally.

Due to reduced law enforcement activity and prison costs associated with marijuana-related crimes, the bill would reduce federal expenditures by hundreds of millions of dollars, according to the New York Times. The Congressional Budget Office (CBO) estimates that the bill would reduce the deficit by almost $3 billion over ten years.

Sign in to keep reading

3 more chapters are free with a Lably account.

More in Politicians and leaders