US House passes landmark federal marijuana legalization bill – again

(This is a developing story and will be updated.)

The U.S. House of Representatives, for the second time in its history, passed a sweeping bill Friday that would end the federal government’s prohibition on marijuana, but the Senate looms as a big hurdle to passage of the legalization measure.

The lower chamber voted 220-204 to pass the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which would remove the plant from the federal Controlled Substances Act and open the industry to additional multibillion-dollar business opportunities and access to traditional banking services.

The MORE Act would not only decriminalize marijuana but also reinvest in communities harmed by the war on drugs and provide for expungement of certain cannabis convictions.

The vote was along party lines, with only three Republicans supporting the measure.

In an hourlong debate, supporters said ending the federal prohibition on marijuana is long overdue and that the ban has been a stain on democracy, leading to massive incarceration rates that disproportionately affect communities of color.

Opponents sharply criticized Democrats for prioritizing marijuana at a time of rising gas and food prices and the war in Ukraine. They also claimed the plant harms youth and adult mental health and fuels drug cartels.

House passage is largely symbolic unless the Senate follows suit.

Sen. Majority Leader Chuck Schumer, a New York Democrat, has been promising since last year to introduce a comprehensive marijuana legalization measure called the Cannabis Administration and Opportunity Act.

It is expected to be offered later this month.

For his part, President Joe Biden has frustrated the marijuana industry for his lack of support on legalization, with his administration yet to move forward substantively on election campaign pledges, which included rescheduling the plant.

The previous U.S. House passed the social justice-focused MORE Act by a margin of 228-164 in December 2020 during the Congress’ lame duck session, with a handful of Republicans then supporting the bill.

Action on the legislation had to start over after the new Congress was seated in January 2021.

The vote Friday came with higher stakes for members because their positions on marijuana legalization could become an issue during upcoming primaries and the fall election.

In addition to legalizing marijuana federally, the MORE Act would:

• Enable states to continue to regulate marijuana as they see fit.
• Allow financial institutions to provide traditional banking services such as deposit accounts, credit cards and loans to marijuana companies without fear of federal reprisal.
• End the federal 280E tax restrictions that prevent state-legal marijuana businesses from taking deductions that are available to ordinary businesses.
• Pave the way for interstate and international marijuana trade.
• Initially impose a 5% federal retail sales tax on marijuana products, with the tax rate increasing gradually to 8% by Year Five. Tax revenues would go into an Opportunity Trust Fund to support individuals and businesses in communities most harmed by the war on drugs.

The measure is designed in part to support industry diversity.

Many lawmakers have expressed concerns that the state-legal marijuana industry increasingly is being controlled by large multistate operators headed mostly by white males.

Jeff Smith can be reached at jeff.smith@mjbizdaily.com.