“The federal government is closing its eyes and plugging its ears while 46 states have acted. The bipartisan STATES Act fixes this problem once and for all by taking a states’ rights approach to the legal marijuana question. The bipartisan, commonsense bill ensures the federal government will respect the will of the voters – whether that is legalization or prohibition – and not interfere in any states’ legal marijuana industry.”

Senator Cory Gardner
June 7 2018

BACKGROUND

i. Amendments such as the current congressional rider protecting state-legal medical marijuana programs are essential in acting as a barrier between the Justice Department and federal law enforcement until bills such as the Respect State Marijuana Laws Act are passed by Congress. However, time is of the essence as there is an international race happening in marijuana research & development.

ii. Current policy hurts the countless patients in states that have passed marijuana reform laws, and threatens further research into the medicinal properties of marijuana. Many of these patients are veterans who have served in Iraq, Afghanistan, and Vietnam.

iii. The present American strategy with marijuana puts the United States behind Canada, Germany, Australia, and Israel who have legalized medical marijuana on a federal level and are leading the race in marijuana therapy research and development.

iv. We have to convince our elected officials to leave marijuana to the states, end the federal prohibitions on medical marijuana, and allow the possession, production, and distribution of marijuana in states with established adult use laws. We need a permanent solution.

IMPLEMENTATION: PRESIDENT & CONGRESS

I. The President signs an Executive Order designating “marihuana” (marijuana) in the Controlled Substances Act to Schedule X.

II. Congress passes a law that does the following:

a. Schedule X drugs shall be considered unscheduled in states that have legal medical or adult use programs.
b. Schedule X drugs shall be considered Schedule 1 in states that have not passed any laws which legalize marijuana for any use.

III. Authorize DOJ to pursue Schedule X crimes in states that have not legalized marijuana for any purpose.

IV. The law shall specifically remove 280E designation for all legal Schedule X businesses and will provide Schedule X businesses access to FDIC insured banking and merchant services.

V. Schedule X medical businesses shall be required to register with the Department of Health and Human Services.

VI. Schedule X adult use businesses shall be required to register with the Department of Treasury.

VII. All Schedule X business may only be owned or controlled by citizens of the United States. If publicly traded, 66% of the entity’s shares must be owned by United States citizens. This provision may be regulated by the Securities & Exchange commission.

VIII. Schedule X certificates shall be mailed by the certifying agency.

IX. Schedule X certificates are only revoked if the business loses its state license.

X. The United States Food & Drug Administration shall not grant patents for formulas or products containing cannabinoids derived from marijuana to any entity that does not have a Schedule X license.

IMPLEMENTATION: INDUSTRY PARTICIPANTS

I. Marijuana businesses shall not use designs or graphics that are attractive to minors.

II. Marijuana businesses shall implement policies and procedures to decline service to patients and customers who show intent to transport or ship marijuana across state lines.

III. Marijuana businesses shall pay all federal income and withholding taxes in a timely manner.

IV. Marijuana businesses shall use third party testing by legitimate laboratories to ensure that products are safe and not contaminated.

V. Marijuana businesses shall comply with all local and state laws and shall not engage in interstate commerce unless permitted by both state governments.

VI. Marijuana businesses shall comply with FDA structure/function guidelines and include appropriate disclaimers when describing the effects of all products.