Cannabis Administration and Opportunity Act

Decriminalization and Removal from Controlled Substances: Cannabis is removed from the schedule of controlled substances, changing its legal status (Section 101).

Expungement of Criminal Records: Federal district courts must review and expunge convictions or juvenile delinquency adjudications for Federal cannabis offenses occurring between May 1, 1971, and the date of enactment (Section 311(a)(1)), allowing individuals to treat such offenses as if they never occurred (Section 311(b)(1)).

Access to Federal Benefits: Individuals with expunged cannabis convictions shall not be subject to any loss of Federal benefits related to those offenses (Section 311(b)(3)), and no person may be denied any Federal public benefit based on cannabis use or conviction (Section 312(a)).

Immigration Protections: Noncitizens may petition to reconsider removal orders based on cannabis offenses (Section 313(b)(5)(A)(ii)), and cannabis may not be considered a controlled substance for purposes of immigration laws (Section 313(a)).

Restorative Justice and Community Support: The Community Reinvestment Grant Program provides funds for job training, reentry services, and legal aid for those impacted by the War on Drugs (Section 301), while grants are also provided to address the needs of individuals and census tracts disproportionately impacted (Section 704(c)).

Support for Small Businesses and Equity: The Cannabis Restorative Opportunity Program offers loans and technical assistance to small business concerns owned by socially and economically disadvantaged individuals (Section 301). Additionally, the SBA is directed to review regulations to reduce burdens and increase loan eligibility for minority businesses and individuals impacted by the War on Drugs (Section 306(b)(1)).

Equitable Licensing: The Equitable Licensing Grant Program helps states and tribes develop licensing programs that minimize barriers to employment and licensing for impacted individuals (Section 301).

Medical Research and Healthcare Access: The bill funds biomedical research on cannabis impacts and requires the Department of Veterans Affairs to conduct clinical trials for veterans with chronic pain and PTSD (Sections 202, 210). The Secretary of Veterans Affairs and the Director of the Indian Health Service are authorized to update policies so healthcare providers can provide recommendations regarding cannabis programs (Sections 314 and 315).

Worker and Consumer Protections: The bill mandates enforcement regulations to protect workers (Section 302(3)) and requires guidance on protecting cannabis workers from life cycle hazards (Section 604). For consumers, strict regulations on labeling and advertising are established to prevent deception (Section 304(a)(5)-(6)).

Financial Fairness: Financial institutions are prohibited from denying services based on prior nonviolent cannabis convictions (Section 706) and from discrimination based on race, color, religion, national origin, and sex (Section 705(a)).

Tax Credits for Manufacturers: A credit is allowed for qualified domestic manufacturers of cannabis products against the imposed tax (Section 5901(e)(1)).

Economic Development: Substantial funding is allocated to the Community Development Financial Institutions Fund and the Emergency Capital Investment Fund to support low- or moderate-income areas and small businesses (Section 704).

Taxation and Financial Burdens: A tax is imposed on all cannabis products produced in or imported into the United States, with rates starting at 10 percent and increasing over time (Section 5901(a) and (b)). Individuals who willfully neglect duties or fail to pay taxes may face a $10,000 penalty, plus an additional penalty of 10 percent of the tax due (Section 5931(a) and (b)).

Criminal Penalties and Legal Risks: It is unlawful to knowingly grow, manufacture, ship, or distribute certain quantities of cannabis without proper authorization (Section 112). Engaging in the business of importing, cultivating, producing, or selling without a federal permit is unlawful (Section 511(a)), and those who engage in these businesses with intent to defraud the United States face fines up to $10,000 or up to 5 years in prison (Section 5932(a)). Violating specified sections regarding unlawful practices can result in criminal fines of up to $1,000 (Section 305(a)(1)).

Restrictions on Federal Employees and Law Enforcement: Agencies may still deem cannabis a controlled substance exclusively for the purpose of drug testing law enforcement officers or Federal employees in significant positions (Section 101(e)). Additionally, the bill includes provisions for the enforcement of laws related to cannabis-impaired driving (Section 224).

Business Regulatory Burdens: Permittees face the risk of losing operating authority due to willful violations, failure to engage in operations for over two years, or fraud/misrepresentation (Section 302(1)). Certain business arrangements, such as exclusive outlets, tied-house inducements, and specific consignment sales, are declared unlawful (Section 304(a)). Businesses must also adhere to strict labeling and advertising regulations (Section 304(a)(5)-(6)). Furthermore, the bill allows for the tracking of cannabis products and gives government officers authority to access and copy records to investigate illicit trade (Section 112).

Product Restrictions: Cannabis products are prohibited from containing certain "characterizing flavors" like menthol or fruit flavors in electronic delivery systems (Section 1109(a)).

Expungement Exceptions: Individuals who received an "aggravating role adjustment" during sentencing for a Federal cannabis offense are generally ineligible for expungement unless specific mitigating factors are found (Section 311(c)).