States Reform Act of 2023

# Summary of the Proposed "States Reform Act" This comprehensive federal legislation proposes to comprehensively reform U.S. cannabis policy by: 1. **Decriminalizing and regulating cannabis**: Removing cannabis from Schedule I of the Controlled Substances Act and establishing a federal regulatory framework similar to alcohol regulation. 2. **Creating a regulatory structure**: - Establishing a federal excise tax of 3% on cannabis products - Creating categories for different cannabis products (flower, pre-rolls, extracts, etc.) - Implementing packaging, labeling, and safety requirements - Establishing a certification process for designated State medical cannabis products 3. **Medical cannabis provisions**: - Creating a process for FDA to certify medical cannabis products - Allowing for specific medical indications (arthritis, nausea, pain, PTSD, etc.) - Permitting State medical cannabis programs to operate under federal framework - Creating a "Law Enforcement Retraining and Successful Second Chances Fund" (30% of tax revenue) 4. **Business and economic provisions**: - Removing barriers for cannabis-related businesses to access SBA loans - Establishing "cannabis-related legitimate business" definitions - Creating new reporting requirements for the cannabis industry - Mandating demographic data collection on cannabis industry workers 5. **Veterans' access**: - Prohibiting federal employment discrimination against veterans who use medical cannabis - Allowing VA health providers to discuss State-approved medical cannabis programs with veterans 6. **Other key provisions**: - Establishing a "cannabis" term to replace "marijuana" or "marihuana" in all federal law - Allowing veterans to have security clearances reconsidered if denied for cannabis use - Creating international trade policy for cannabis - Mandating continued federal drug testing for employees in certain positions - Establishing a 10-year moratorium on increasing cannabis excise tax The bill would establish a comprehensive federal framework for legal cannabis that would operate alongside existing State programs, with detailed tax, regulatory, and reporting requirements. It would also include significant provisions to address social equity, veterans' access, and economic opportunities in the emerging cannabis industry.