The House has passed the Marijuana Opportunity Reinvestment and Expungement Act (H.R. 3884, also known as the MORE Act) by a vote of 228-164, including yes votes from five Republicans and one Independent. This vote marks the first time either chamber of Congress has passed legislation addressing the federal scheduling of cannabis since the passage of the Controlled Substances Act in the 1970s. The MORE Act removes cannabis from Schedule I of the Controlled Substances Act. Descheduling removes federal criminal penalties and would make the application of Section 280E of the Internal Revenue Code void for cannabis businesses.
This bill’s primary focus is on racial and social justice as it will provide mechanisms for the expungement of federal non-violent cannabis offenses, allows those awaiting sentences to petition courts for reconsideration, and creates a new office of Cannabis Justice within the Department of Justice. This office will oversee a trust fund that will direct revenue to job training, health education, re-entry services, legal aid, youth mentoring programs and substance treatment programs. This trust fund will be funded by a graduated excise tax on cannabis which starts at 5% the first year and graduates to 8%, at which point the taxation structure switches to a per weight or THC content basis. The bill allows for Small Business Administration funding for legitimate cannabis-related businesses and service providers.
Additionally, the MORE Act prevents federal agencies from denying public benefits or security clearances for cannabis use unless for security sensitive positions with the Department of Transportation and the Coast Guard. The bill further removes cannabis related conduct from the list of deportable offenses.
Lastly, this bill calls for several studies including one run through the Bureau of Labor Statistics to collect data on the cannabis industry demographics, and whether the bill is appropriately serving those impacted by the War on Drugs.
The bill now moves to the Senate, where its passage is unlikely this Congress.
About Greenspoon Marder Greenspoon Marder is a national full-service business law firm with over 200 attorneys and offices across the United States. We are ranked among American Lawyer ’s Am Law 200, as one of the top law firms in the U.S. since 2015. Our firm was founded with the goal of providing the highest quality legal services at the highest value for our clients. Each of our clients is unique and so are their legal needs. We believe no one size fits all for professional services. Our lawyers offer flexible and creative solutions to meet our clients’ respective needs. Our mission is to understand the challenges our clients face, build collaborative relationships and craft solutions with a focus on strategic goals.
MEDIA CONTACT natalie.villanueva@gmlaw.com
This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.
