Bipartisan Proposal Seeks Federal Legalization of Cannabis in Adult-Use States

A new bipartisan proposal is taking aim at federal cannabis policies, looking to bring a wave of reform to the states, territories, and tribal nations where adult-use cannabis is already legal. The Strengthening the Tenth Amendment Through Entrusting States (STATES) 2.0 Act, introduced Thursday by U.S. Reps. Dave Joyce (R-OH), Max Miller (R-OH), and Dina Titus (D-NV), offers a substantial shift in the legal landscape of cannabis across the United States.

This bill could potentially change the game for cannabis businesses, state residents, and those eager for broader reform by making federal cannabis regulations less of an obstacle for states that have already made the move to legalize. Could this be the beginning of a new era in cannabis legislation? It certainly feels like it.

Key Provisions of the STATES 2.0 Act

The proposal aims to shield those who comply with state and local cannabis regulations from federal prosecution. This move is seen as an essential step toward resolving the ongoing tension between state and federal law on cannabis use. Currently, people who live in states where cannabis is legal still risk federal penalties, creating a complicated and confusing legal environment.

The bill also focuses on promoting interstate commerce, making it easier for cannabis businesses to trade across state lines in states where the product is legal. This is a crucial aspect that could pave the way for a more robust and efficient market for legal cannabis. The changes proposed would also address long-standing issues with tax codes, especially IRS’s Section 280E, which penalizes cannabis businesses by denying them standard business tax deductions available to other industries.

It’s a big step toward addressing the inconsistent and often hostile federal policies that have burdened state-legal cannabis businesses for years.

What Does This Mean for States With Legalized Cannabis?

The STATES 2.0 Act would not only protect businesses and individuals in states with adult-use cannabis laws but also provide more clarity to the cannabis market as a whole. States like California, Colorado, and Nevada have long since passed legalization measures, but businesses operating under state laws continue to face challenges related to federal taxation and criminal prosecution.

Under the proposed bill, cannabis businesses in states like these would be able to operate more freely, without fear of IRS audits that rely on outdated federal regulations. The bill’s backers are hopeful that this could lead to an economic boom in the legal cannabis market, allowing businesses to expand and thrive without the looming threat of federal intervention.

Moreover, this proposal signals a much-needed shift in the federal government’s stance on cannabis policy. For many advocates and stakeholders, it feels like a long-overdue recognition of the fact that cannabis is now legal in numerous states, and that the federal government’s heavy hand is preventing these states from fully realizing the potential of their legal cannabis industries.

• The bill allows for greater state autonomy over cannabis regulation

• It paves the way for interstate cannabis commerce

• It addresses the IRS tax code’s impact on cannabis businesses

The Political Backing Behind the Legislation

A bipartisan push for cannabis reform is noteworthy in itself. U.S. Reps. Joyce, Miller, and Titus, with differing political affiliations, represent a growing coalition of lawmakers who see the need to amend outdated cannabis laws. Rep. Joyce, in particular, has been a long-time advocate for reform, even co-chairing the Congressional Cannabis Caucus. According to him, “Whether a state is pro-legalization or anti-legalization, we can all agree that the current federal approach to cannabis policy is not working.”

Their unified stance on this issue could be a sign that there is a growing recognition within Congress that cannabis laws need to evolve to match the reality of state-level legalization. The bipartisan nature of the bill is intended to show that cannabis reform is not a partisan issue, but rather a matter of state rights and economic opportunity.

A Look at What’s Next for the STATES 2.0 Act

While the proposal is a significant step forward, it still faces many hurdles before it can become law. Lawmakers will have to grapple with the balance between federal authority and state autonomy, and debates will likely center around issues such as banking, public health, and criminal justice.

Nevertheless, the growing momentum for cannabis reform is undeniable. Public opinion on cannabis has shifted dramatically in recent years, with polls consistently showing broad support for legalization. With more states moving toward legalization, the federal government will likely be forced to reconsider its position on cannabis sooner rather than later.

For those hoping to see a more cohesive and supportive cannabis policy framework, the STATES 2.0 Act is a crucial piece of the puzzle.