US Congress Committee Passes Cannabis Legalization
On November 20, the U.S. House of Representatives Committee on Legal Affairs passed a federal law on hemp legalization. The regulatory act was supported by 24 members, 10 – voted against. In the near future, the document will be sent for consideration to the House of Representatives.
Cannabis want to be removed from the list of prohibited substances
The document called the MORE Act of 2019 (“The Law on the Exclusion of Marijuana and the Opportunity to Reinvest 2019”), consists of five main points:
- Decriminalization of hemp. Cannabis must be removed from the list of narcotic substances within 180 days after the entry into force of the law.
- Drop charges for marijuana trafficking crimes. All US residents who have been administratively or criminally prosecuted for any cannabis crime must be fully rehabilitated.
- Collection of statistical information. The Bureau of Labor Statistics is required to regularly collect and publish data on people working in the cannabis industry.
- Taxation of hemp enterprises. Imported and local cannabis products will be subject to 5% VAT.
- Creation of a trust fund. The US Treasury Department needs to open a trust fund to which taxes received from the sale of hemp products will be directed. This money will be used to re-socialize convicts for crimes in the field of illegal hemp trafficking.
Most Americans advocate lifting the hemp ban
Committee Chairman Jerry Nadler commented on the news of the adoption of the law: “Cannabis had to be deleted from the list of prohibited substances for a long time. For too long we have been considering marijuana in the criminal justice system, and not in the context of public health and personal choice. No matter how we treat recreational and medical hemp, it’s unjust and stupid to arrest and punish people for marijuana. ”
The National Marijuana Law Reform Organization (NORML) has called the meeting of the Committee a historic moment in US political history. NORML Director Eric Altieri said that for the first time in history, the Congress Committee approved a bill to lift the hemp ban at the federal level and rehabilitate convicts. According to him, two-thirds of Americans favor the legalization of plants and support for communities affected by repressive policies. First of all, we are talking about the colored population of the United States. According to official figures, from 2001 to 2010, 8.2 million people were arrested in the country for the possession or sale of marijuana, with 3.73 blacks for every white.
Hemp stocks rise sharply
A report on the possible legalization of cannabis in the United States had a positive impact on the stock market. Shares of the Canadian hemp company Canopy Growth went up 15.14% over the day, Aurora Cannabis securities added 12.54%, Tilray – 4.7%, Apphia – 4.87%. Positive dynamics may mean a trend reversal from bearish to bullish, however, at the moment, the movement of the stock price falls within the boundaries of the general line of the downward trend.