# States Reform Act of 2023 Summary
The States Reform Act would remove marijuana from federal criminal law and allow states to regulate cannabis independently while establishing federal taxation and oversight. The bill federally decriminalizes marijuana possession and sales, retroactively canceling federal convictions for nonviolent cannabis offenses and releasing individuals from federal prison if their only crime involved marijuana. It expunges federal cannabis convictions within one year and permits those with dishonorable discharges solely for cannabis offenses to petition for upgrade to general discharge status.
The legislation transfers marijuana regulation from the Drug Enforcement Administration to the Treasury Department's Alcohol and Tobacco Tax and Trade Bureau, treating cannabis like alcohol for federal purposes. It imposes a 3 percent federal excise tax on cannabis products with a 10-year moratorium on tax increases, with revenues funding law enforcement retraining, small business access to cannabis entrepreneurs, and veterans' programs. The Department of Agriculture gains authority over raw cannabis farming, while the FDA regulates medical cannabis products approved by states. States can establish their own marijuana regulatory programs, and state-licensed cannabis businesses automatically qualify for federal permits to engage in interstate commerce.
The bill allows cannabis businesses access to Small Business Administration loans and disaster relief, permits veterans in federal jobs to use state-approved cannabis without employment discrimination, and authorizes Veterans Affairs doctors to recommend state-approved cannabis products. It establishes a 21-year-old minimum age for cannabis purchases federally and conditions highway funding on states maintaining this age limit. The act takes effect immediately upon enactment except for certain tax provisions that begin 180 days after passage.
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