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The States Reform Act of 2023 removes marijuana from the federal Controlled Substances Act Schedule I, allowing states to set their own cannabis policies without federal preemption. The bill establishes a federal regulatory framework treating cannabis similarly to alcohol, with oversight by the FDA, Department of Agriculture, and Alcohol and Tobacco Tax and Trade Bureau. It includes provisions for expungement of prior cannabis convictions, Small Business Administration access for cannabis businesses, a federal excise tax on cannabis, and protections for veterans and federal employees regarding cannabis use.
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