US Cannabis Council Releases Guidance for National Cannabis Regulation through CAO Act


September 1, 2021


Steven Hawkins, CEO of the US Cannabis Council, issued the following statement after the submission of formal comments to Senate Majority Leader Chuck Schumer and Senators Ron Wyden and Cory Booker, the sponsors of the draft Cannabis Administration and Opportunity Act:

 

“The Cannabis Administration and Opportunity Act just took a big step toward introduction in the Senate. We are fully aligned with the sponsors’ goals and applaud their leadership and careful consideration. Cannabis prohibition in America is coming to an end, and the draft legislative text provides a road map for transitioning to a more just, equitable and prosperous future, particularly for emerging and social equity businesses and those directly impacted by cannabis prohibition. We are grateful to the sponsors for the opportunity to collaborate and share our policy priorities which we believe will strengthen the current draft bill.

 

“America’s transition to legal, fully regulated cannabis will take time to get right. We welcome the opportunity to work with the CAO Act’s sponsors to develop legislation that provides, among other things, a reasonable regulatory structure, equitable tax structure, protections for existing state programs, youth access prevention, clear pathways to economic and social equity for those who have not had access previously, and consideration for treaty obligations and potential Constitutional challenges.

 

“USCC believes that critical changes will be needed in order for the CAO ​Act ​to achieve​ its long-term objectives of transitioning Americans away from the illicit market to a fully regulated national market that provides opportunities to all, including but not limited to the following:


  • The Tax and Trade Bureau at the Treasury Department should be the primary regulator of cannabis. The Food and Drug Administration should set health and safety standards.
  • The complexity of production and wide variety of cannabis products​ require a new model of taxation, at rates that do not fuel the illicit market.
  • Before significantly changing the regulatory landscape, new rules should recognize state programs, account for current legal obstacles and include a sufficient transition period after de-scheduling to ensure that regulators and businesses of all sizes – particularly emerging and social equity businesses – have the necessary time to adapt ahead of the onset of a national marketplace.


“At the end of the day, the detailed policy conversations taking place around the CAO Act should not distract from its historic nature. We support the leadership and vision of the sponsors and look forward to ongoing discussions and engagement to advance this vital legislation.

 

“For the first time in American history, the end of federal cannabis prohibition is within sight.”

 

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The US Cannabis Council is a 501(c)4 nonprofit organization. USCC members seek to harness their collective expertise in order to advance social equity, end the federal prohibition of cannabis, modernize federal and state regulations and promote high ethical standards within the industry.


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