Major alcohol industry associations are officially supporting federal marijuana legalization. They released a policy paper that sets out regulatory priorities while Congress considers ending prohibition.
Wine & Spirits Wholesalers of America said that lawmakers should learn from alcohol regulations in order to create a framework that allows for industry competition and innovation, as well as public safety.
It said that the transition from alcohol prohibition into legalization was “an American success story” and should be repeated with cannabis.
While the association doesn’t suggest that federal regulations should replace those in place in the states, some regulatory oversight and taxation can help to support these programs and normalize the cannabis industry.
“Americans have confidence and support our regulated alcohol system, and our experience can help lawmakers create a U.S. adult use cannabis market,” Michelle Korsmo , WSWA CEO, stated in a Friday press release. “WSWA members have partnered with suppliers to distribute socially sensitive products locally licensed retailers for over 100 years.”
Korsmo stated that the U.S. Alcohol Market is one of the most safest and diverse in the world due to the federal regulatory model that ensures product integrity and efficient tax collection.
WSWA outlined four key principles to federal oversight of an adult-use cannabis supply chain:
1. Federal approval of cannabis producers, importers and testing facilities, as well as distributors.
Although the association recommended that states manage marijuana retailer licensing, it also suggested that the federal government issue permits to cannabis producers, distributors, and importers through the Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau.
2. Regulation and approval of cannabis products.
The association stated that new cannabis products should be subjected to federal registration and pre-market approval. This would be in support of existing state-level quality control policies.
All marijuana products should have a standardized label. The labels should contain information about the product’s name, THC potency and net content as well as the producer name and address.
3. Federal excise taxes are collected efficiently and effectively.
WSWA recommended that a federal excise taxes be imposed on cannabis products at the producer and importer levels. It should be based upon potency, just like beverages are taxed based alcohol concentration. TTB should pay the taxes on a semi-monthly basis.
4. Public safety can be ensured by taking effective measures.
The association emphasized public safety and said it focused on deterring impaired drivers. It also suggested that lawmakers prioritize collaboration with law enforcement and researchers to create technology that can detect active impairment from cannabis and train drug recognition specialists on the roads.
WSWA, which supported states’ rights to legalize marijuana in 2018, concluded its policy brief explaining why it is taking this step to help with federal reform. It stated that a “safe, economically vibrant market has emerged since the end of alcohol prohibition – one that serves both regulators and consumers.”
“While regulations may have changed over time, the fundamental federal regulatory structure of tax collection and permitting has stood the test, according to WSWA’s paper , which was mentioned earlier in Politico. We believe it is important that policymakers share the lessons of our industry as they consider the future for adult-use cannabis. The wholesalers of wine and spirits in America are proud to be a part of this system. We believe the principles laid out here can be applied to a national adult-use marijuana system.
Although the House passed two bills to federally legalize marijuana and regulate it, comprehensive reform has not been advanced in the Senate despite ‘s much-anticipated legislation to repeal prohibition.
The distribution of regulatory responsibility is a key difference between the bill by Senate Majority Leader Chuck Schumer, (D-NY), and that of the Alcohol Association. Advocates were concerned about the Senate measure’s deference towards the Food and Drug Administration (FDA). It’s possible that WSWA would accept the position of basic oversight being managed by TTB, which is likely to be accepted by many stakeholders.
The policy brief’s press release by WSWA contains strong language from the organization about lower entry barriers for people who have been “victimized” by the failed war on drugs. It also supports “efforts of experts to advocate for other social equity measures that will alleviate the harm done to these communities.”
However, the brief itself it light on recommendations to that end, simply including a note that people with “non-violent cannabis-related offenses that occurred prior to federal legalization/descheduling” should not be disqualified from receiving federal permits to operate marijuana businesses. The proposal doesn’t provide for prioritization of permitting for those from communities that have been affected by the drug war.
This is the first time a major alcohol industry association supports a specific framework to federal legalization. However, WSWA has stated that the status quo is unacceptable. It backed states’ rights to legalize in 2018 and held a briefing at Capitol Hill to inform legislators and staff.
The association also supported a Senate bill in 2021 to allow hemp derivatives like CBD to be used as food, drink, and dietary supplements.
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The post Major Alcohol Industry Association calls for Federal Marijuana Legalization and Recommends Regulatory Framework was first published on Marijuana Moment.
