[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6028 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 6028
To amend the Controlled Substances Act regarding marihuana, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 24, 2023
Ms. Mace (for herself, Mr. McClintock, Mr. Phillips, Mr. Trone, and Mr.
Gaetz) introduced the following bill
October 25, 2023
Referred to the Committee on Energy and Commerce, and in addition to
the Committees on the Judiciary, Natural Resources, Agriculture,
Transportation and Infrastructure, Armed Services, Ways and Means,
Small Business, Veterans' Affairs, Oversight and Accountability,
Education and the Workforce, and Foreign Affairs, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Controlled Substances Act regarding marihuana, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``States Reform Act
of 2023''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--DECRIMINALIZATION OF MARIJUANA AND DEFERENCE TO STATE POWERS
OF PROHIBITION
Sec. 101. Federal decriminalization of cannabis, and State control
deference.
Sec. 102. Second Chances for Nonviolent Cannabis Offenders.
Sec. 103. GCA provisions.
TITLE II--REGULATION OF MARIJUANA LIKE ALCOHOL
Sec. 201. Food and Drug Administration.
Sec. 202. Department of Agriculture regulation of raw cannabis.
Sec. 203. Addition of raw cannabis to certain authorities relating to
agricultural production.
Sec. 204. Administration like alcohol under Tax and Trade Bureau.
Sec. 205. Transferring agency functions with regard to marijuana.
Sec. 206. Transition safe harbor and administrative remedies.
Sec. 207. Unfair advertising practices and 21 age limit.
Sec. 208. Federal cannabis administration under the Federal Alcohol
Administration Act.
TITLE III--DESIGNATED STATE MEDICAL CANNABIS PRODUCT SAFETY ACT
Sec. 301. Grandfathering of State medical cannabis products into
interstate commerce.
TITLE IV--SMALL BUSINESS ADMINISTRATION PROVISIONS
Sec. 401. Fair Small Business Administration access.
Sec. 402. Disaster loan nondiscrimination.
Sec. 403. Microloan nondiscrimination.
Sec. 404. Small business investment company debenture
nondiscrimination.
Sec. 405. State or local development loan non-discrimination.
Sec. 406. Rulemaking and disbursement.
Sec. 407. Administrative Procedure Act and mandamus remedies.
TITLE V--IMPOSITION OF CANNABIS EXCISE TAX
Sec. 501. Law enforcement retraining and successful second chances
fund.
Sec. 502. Cannabis Revenue and Regulation Act.
Sec. 503. Reports and conforming amendments.
TITLE VI--VETERANS' CARE AND ACCESS
Sec. 601. Nondiscrimination in Federal hiring for veteran medical
cannabis users.
Sec. 602. Authorized provision of information on State-approved
marijuana programs to veterans.
TITLE VII--MISCELLANEOUS UPDATES AND TECHNICAL AMENDMENTS
Sec. 701. United States international cannabis commerce policy.
Sec. 702. Continued Federal employee drug testing.
Sec. 703. Demographic data on new industry of cannabis business owners
and employees.
Sec. 704. Conforming amendment to create uniformity of references in
existing law to cannabis, marijuana, or
marihuana.
Sec. 705. Security clearances.
Sec. 706. Effective upon enactment.
TITLE I--DECRIMINALIZATION OF MARIJUANA AND DEFERENCE TO STATE POWERS
OF PROHIBITION
SEC. 101. FEDERAL DECRIMINALIZATION OF CANNABIS, AND STATE CONTROL
DEFERENCE.
(a) Preemption of Cannabis Removed From Schedule of Controlled
Substances.--
(1) Removal of federal controlled substances act
preemption.--Subsection (c) of schedule I of section 202(c) of
the Controlled Substances Act (21 U.S.C. 812) is amended--
(A) by striking ``(10) Marihuana.''; and
(B) by striking ``(17) Tetrahydrocannabinols,
except for tetrahydrocannabinols in hemp (as defined in
section 297A of the Agricultural Marketing Act of
1946).''.
(2) Treatment like alcohol in controlled substances act.--
The Controlled Substances Act (21 U.S.C. 802(6)) is amended--by
inserting ``Marihuana,'' after ``malt beverages,''.
(3) Residual rulemaking.--Not later than 30 days after the
date of the enactment of this Act, the Attorney General shall
administratively revise the current regulations at 21 CFR
1308.11 and related provisions to clarify that for the purposes
of the Controlled Substances Act and related statutes, in light
of the States Reform Act, marihuana and tetrahydrocannabinols
are each deemed by Congress to be a drug or other substance
that does not meet the requirements for inclusion in any
schedule. Such administrative rulemaking amendments shall not
be subject to the requirements of the Administrative Procedure
Act other than notice of changes in the Federal Register. Any
regulations inconsistent with this Act shall be deemed invalid
on the date of enactment of this Act for all purposes including
but not limited to any offense committed, case pending,
conviction entered, and, in the case of a juvenile, any offense
committed, case pending, and adjudication of juvenile
delinquency entered before, on, or after the date of enactment
of this Act.
(b) Conforming Amendments to Controlled Substances Act and
Controlled Substances Import and Export Act.--
(1) The Controlled Substances Act (21 U.S.C. 801 et seq.)
is amended--
(A) in section 102(44) (21 U.S.C. 802(44)), by
striking ``marihuana,'';
(B) in section 401(b) (21 U.S.C. 841(b))--
(i) in paragraph (1)--
(I) in subparagraph (A)--
(aa) in clause (vi), by
inserting ``or'' after the
semicolon;
(bb) by striking clause
(vii); and
(cc) by redesignating
clause (viii) as clause (vii);
(II) in subparagraph (B)--
(aa) in clause (vi), by
inserting ``or'' after the
semicolon;
(bb) by striking clause
(vii); and
(cc) by redesignating
clause (viii) as clause (vii);
(III) in subparagraph (C), in the
first sentence, by striking
``subparagraphs (A), (B), and (D)'' and
inserting ``subparagraphs (A) and
(B)'';
(IV) by striking subparagraph (D);
(V) by redesignating subparagraph
(E) as subparagraph (D); and
(VI) in subparagraph (D)(i), as so
redesignated, by striking
``subparagraphs (C) and (D)'' and
inserting ``subparagraph (C)'';
(ii) by striking paragraph (4); and
(iii) by redesignating paragraphs (5), (6),
and (7) as paragraphs (4), (5), and (6),
respectively;
(C) in section 402(c)(2)(B) (21 U.S.C.
842(c)(2)(B)), by striking ``, marihuana,'';
(D) in section 403(d)(1) (21 U.S.C. 843(d)(1)), by
striking ``, marihuana,'';
(E) in section 418(a) (21 U.S.C. 859(a)), by
striking the last sentence;
(F) in section 419(a) (21 U.S.C. 860(a)), by
striking the last sentence;
(G) in section 422(d) (21 U.S.C. 863(d))--
(i) in the matter preceding paragraph (1),
by striking ``marijuana,''; and
(ii) in paragraph (5), by striking ``, such
as a marihuana cigarette,'';
(H) in section 503 (21 U.S.C. 24 873(a)(5) and
(6)), by striking ``controlled substances'' each place
the term appears and inserting ``controlled substances
and marihuana,''; and
(I) in section 516(d) (21 U.S.C. 886(d)), by
striking ``section 401(b)(6)'' each place the term
appears and inserting ``section 401(b)(5)''.
(2) Section 1010(b) of the Controlled Substances Import and
Export Act (21 U.S.C. 960) is amended--
(A) in paragraph (1)--
(i) in subparagraph (F), by inserting
``or'' after the semicolon;
(ii) by striking subparagraph (G); and
(iii) by redesignating subparagraph (H) as
subparagraph (G);
(B) in paragraph (2)--
(i) in subparagraph (F), by inserting
``or'' after the semicolon;
(ii) by striking subparagraph (G); and
(iii) by redesignating subparagraph (H) as
subparagraph (G);
(C) in paragraph (3), by striking ``paragraphs (1),
(2), and (4)'' and inserting ``paragraphs (1) and
(2)'';
(D) by striking paragraph (4); and
(E) by redesignating paragraphs (5), (6), and (7)
as paragraphs (4), (5), and (6), respectively.
(c) Other Conforming Amendments.--
(1) National forest system drug control act of 1986.--The
National Forest System Drug Control Act of 1986 (16 U.S.C. 559b
et seq.) is amended--
(A) in section 15002(a) (16 U.S.C. 559b(a)) by
striking ``marijuana and other'';
(B) in section 15003(2) (16 U.S.C. 559c(2)) by
striking ``marijuana and other''; and
(C) in section 15004(2) (16 U.S.C. 559d(2)) by
striking ``marijuana and other''.
(2) Interception of communications.--Section 2516 of title
18, United States Code, is amended--
(A) in subsection (1)(e), by striking
``marihuana,''; and
(B) in subsection (2) by striking ``marihuana''.
(3) FMCSA provisions.--
(A) Conforming amendment.--Section 31301(5) of
title 49, United States Code, is amended by striking
``section 31306,'' and inserting ``sections 31306,
31306a, and subsections (b) and (c) of section
31310,''.
(B) Definition.--Section 31306(a) of title 49,
United States Code, is amended--
(i) by striking ``means any substance'' and
inserting the following: ``means--
``(A) any substance''; and
(ii) by striking the period at the end and
inserting:
``(B) any substance not covered under subparagraph
(A) that was a substance under such section as of
December 1, 2018, and specified by the Secretary of
Transportation.''.
(C) Disqualifications.--Section 31310(b) of title
49, United States Code, is amended by adding at the end
the following:
``(3) In this subsection and subsection (c), the term
`controlled substance' has the meaning given such term in
section 31306(a).''.
(4) FAA provisions.--Section 45101 of title 49, United
States Code, is amended--
(A) by striking ``means any substance'' and
inserting the following: ``means--
``(A) any substance''; and
(B) by striking the period at the end and
inserting:
``(B) any substance not covered under subparagraph
(A) that was a substance under such section as of
December 1, 2018, and specified by the Secretary of
Transportation.''.
(5) FRA provisions.--Section 20140(a) of title 49, United
States Code, is amended--
(A) by striking ``means any substance'' and
inserting the following: ``means--
``(A) any substance''; and
(B) by striking the period at the end and
inserting:
``(B) any substance not covered under subparagraph
(A) that was a substance under such section as of
December 1, 2018, and specified by the Secretary of
Transportation.''.
(6) FTA provisions.--Section 5331(a)(1) of title 49, United
States Code, is amended--
(A) by striking ``means any substance'' and
inserting the following: ``means--
``(A) any substance''; and
(B) by striking the period at the end and
inserting:
``(B) any substance not covered under subparagraph
(A) that was a substance under such section as of
December 1, 2018, and whose use the Secretary of
Transportation decides has a risk to transportation
safety.''.
(7) Electronic cannabis delivery system.--Section 375(7)(C)
of title 15, United States Code, is amended by adding at the
end the following:
``(16) Electronic cannabis delivery system.--
``(A) In general.--Electronic cannabis delivery
systems are devices that are intended for the exclusive
use with cannabis.
``(B) Definition.--The term `electronic cannabis
delivery system' means an electronic device that
delivers a designated State medical cannabis products
within the meaning of the Federal Food Drug and
Cosmetic Act or a cannabis product within the meaning
of title III of the Federal Alcohol Administration Act,
via an aerosolized or vaporized solution to the user
inhaling from the device, and any component, liquid,
part, or accessory of such a device, whether or not
sold separately.
``(C) Labeling.--Electronic cannabis delivery
systems shall be labeled `NOT FOR USE WITH TOBACCO OR
NICOTINE.'.
``(D) Sale of delivery systems.--The sale of
electronic cannabis delivery systems, via in-person or
e-commerce platforms, shall be subject to age-gate
measures to ensure the sale of these devices are to
appropriate age populations.
``(E) Non-tobacco.--Electronic cannabis delivery
systems are independent to that of electronic delivery
systems used with tobacco and tobacco-related
substances referred to as electronic nicotine delivery
systems (ENDS).
``(F) Like alcohol or like medical devices.--A
cannabis product within the meaning of title III of the
Federal Alcohol Administration Act shall be treated
like an alcoholic beverage for the purposes of
mailability and age-gate measures mentioned in section
(D). A designated State medical cannabis product within
the meaning of the Federal Food Drug and Cosmetic Act,
shall be treated like similar FDA-regulated
therapeutics, therapeutic devices, or drugs for the
purposes of mailability and age-gate measures mentioned
in section (D). The Postmaster General may require a
declaration from a shipper of such cannabis products,
designated State medical cannabis products, or
components, liquids, parts, or accessories that is sold
separately from the device is not intended for use in a
nicotine or tobacco product.''.
SEC. 102. SECOND CHANCES FOR NONVIOLENT CANNABIS OFFENDERS.
(a) Definition.--In this section:
(1) Related nonviolent marihuana offenses.--The term
``related nonviolent marihuana offenses'' shall mean any
related nonviolent offenses or convictions that would not have
satisfied all elements of the charged offense or offenses but
for the involvement of marijuana, marihuana as defined in
section 102(16) of the Controlled Substances Act (21 U.S.C.
802(16)), or tetrahydrocannabinols except for any offenses or
convictions where it has been established in court that the
individual was associated with a foreign drug cartel or
operating a motor vehicle under the influence of a drug or
alcohol within the meaning of section 13(b) of title 18, United
States Code, an offense of operating or being in actual
physical control of a motor vehicle within the meaning of title
36, section 4.23 of the Code of Federal Regulations, or drunken
or reckless operation of vehicle, aircraft or vessel within the
meaning of article 111 of the Uniform Code of Military Justice,
and section 911 of title 10, United States Code.
(2) Associated with a foreign drug cartel.--The term
``associated with a foreign drug cartel'' shall mean, in the
case of an individual, that law enforcement has probable cause
to believe to be connected to or an instrument of a foreign
agent, drug cartel, or power.
(b) Retroactive Application to Marihuana Offenses.--The amendments
made by this section to the Controlled Substances Act (21 U.S.C. 801 et
seq.) are retroactive and shall apply to any offense committed, case
pending, conviction entered, and, in the case of a juvenile, any
offense committed, case pending, or adjudication of juvenile
delinquency entered before, on, or after the date of enactment of this
Act--
(1) Limitation of retroactive application to nonviolent and
related nonviolent marihuana offenses.--Such application and
retroactivity described in this subsection (b) shall extend to
any nonviolent offense involving marijuana, marihuana as
defined in section 102(16) of the Controlled Substances Act (21
U.S.C. 802(16)), or tetrahydrocannabinols and any related
nonviolent marihuana offenses occurring before, on, or after
the date of enactment of this Act. This provision is meant to
be extended to nonviolent offenses charged, pending, or
otherwise, previously found to be crimes of violence
subsequently found to be unconstitutionally vague or
restricted.
(2) Application to pending actions.--For all pending
criminal charges or cases and convictions awaiting sentencing
impacted by amendments made by this subsection to the
Controlled Substances Act (21 U.S.C. 801 et seq.), the attorney
for the Government shall drop the relevant charges or seek
dismissal of all pending charges within 14 days after the date
of enactment of this Act. Any person held in pretrial detention
and entitled to dismissal of relevant charges under this
provision, and not detained for any other reason, shall be
entitled to issuance of a writ under section 2241 of title 28,
United States Code or section 1361 of title 28, United States
Code, to effectuate immediate release.
(3) Application to defendants previously sentenced.--In the
case of a defendant who, before the date of enactment of this
Act, was convicted or sentenced for any Federal offense
involving marijuana, marihuana as defined in section 102(16) of
the Controlled Substances Act (21 U.S.C. 802(16)), or
tetrahydrocannabinols and not serving a sentence for any
conduct not covered by this Act or serving multiple sentences
as provided in section 3584 of title 18, United States Code,
the Director of the Bureau of Prisons, United States Marshals
Service, or United States Parole Commission shall release such
individual from its control within 14 days after the date of
enactment of this Act. Any person not so timely released and
entitled to such under this provision shall be entitled to
issuance of a writ under section 2241 of title 28, United
States Code or section 1361 of title 28, United States Code, to
effectuate immediate release.
(4) Cumulative sentencing reconsideration.--In the case of
a defendant who, before the date of enactment of this Act, was
convicted or sentenced for any Federal offense involving
marijuana, marihuana, or tetrahydrocannabinols but is also
serving a sentence for any other crime not considered a related
nonviolent marihuana offenses by this Act, the sentencing court
may, on motion of the defendant, the Director of the Bureau of
Prisons, the attorney for the Government, or on its own motion,
impose a reduced sentence after considering the factors set
forth in section 3553(a) of title 18, United States Code.
(5) Limitation to only cannabis.--This provision applies
solely to persons who traded exclusively in marijuana,
marihuana as defined in section 102(16) of the Controlled
Substances Act (21 U.S.C. 802(16)), or tetrahydrocannabinols
rather than other substances controlled under the Controlled
Substances Act.
(6) Scope.--This provision applies to each and every organ
of the Federal Government.
(7) Post-passage limitation.--This provision does not apply
to acts or transactions occurring after the passage of this Act
that are not in compliance with this Act and other applicable
laws.
(8) Judicial review.--Questions of non-violence are
reviewable in any proceeding initiated under this subsection
(d) or the following subsection (e). For an example of a person
considered under this law to be a nonviolent cannabis offender
based on the totality of facts in the case, please refer to the
case of United States v. Angelos, 345 F. Supp. 2d 1227 (D. Utah
2004).
(9) Crimes of violence excluded.--A person found guilty of
a crime of violence under section 16(a) of title 18 of the
United States Code (18 U.S.C. 16(a)) is a violent offender for
the purposes of this provision and ineligible for any relief
under section 102 this Act.
(c) Cessation of All Marihuana Administrative Actions and
Repatriation of Property.--Notwithstanding any other provision of law,
the Federal Government shall not pursue, and shall immediately desist
any present administrative or enforcement action, or criminal or civil
asset forfeiture proceeding, against any United States citizen where
the cause of controversy is rooted in the illicit marihuana, as defined
in section 102(16) of the Controlled Substances Act (21 U.S.C.
802(16)), or tetrahydrocannabinols trade for nonviolent acts having
occurred between the passage of the Marijuana Tax Act of 1937 (Public
Law 75-238, 50 Stat. 551) and this Act, nor shall the proceeds of such
trade or acts be considered the proceeds of illegal drug trade or any
kind of criminal or illicit activity under sections 981, 1956 or 1957
of title 18, United States Code, or any other provision of law, even if
such activity occurred before the date of enactment of this Act.
(1) Limitation to only cannabis.--This provision applies
solely to persons who traded exclusively in marijuana,
marihuana as defined in section 102(16) of the Controlled
Substances Act (21 U.S.C. 802(16)), or tetrahydrocannabinols
rather than other substances controlled under the Controlled
Substances Act.
(2) Scope.--This provision applies to each and every organ
of the Federal Government.
(3) Post-passage limitation.--This provision does not apply
to acts or transaction occurring after the passage of this Act
that are not in compliance with this Act and other applicable
laws.
(d) Application to Military Law.--Notwithstanding any other
provision of law, the provisions of subsection (a) shall apply to
proceedings involving military courts, tribunals, courts-martial, and
offenses under the Uniform Code of Military Justice. Former
servicemembers and veterans that received other than honorable, bad
conduct, or dishonorable discharges premised solely on nonviolent
cannabis offenses covered under this subsection (a) shall be entitled
to petition and receive from a service branch discharge review board or
the Board of Correction for Military Records, as jurisdictionally
appropriate, an upgrade to a general discharge.
(e) Expungement of Nonviolent Federal Cannabis Offenses.--Section
3607(c) of title 18, United States Code, is amended--
(1) by striking ``If the case'' and inserting ``(1) If the
case'';
(2) by adding after ``thereof.'' the following:
``(2) Not later than 1 year after the date of the enactment of this
Act, each Federal district shall conduct a comprehensive review and
issue an order expunging, without financial commitment from the
offender, each conviction or adjudication for any Federal offense
involving marijuana, marihuana as defined in section 102(16) of the
Controlled Substances Act (21 U.S.C. 802(16)), or
tetrahydrocannabinols, and any related nonviolent marihuana offenses,
entered by each Federal court in the district before the date of
enactment of this Act. Each Federal court shall also issue an order
expunging any arrests associated with each expunged conviction or
adjudication unless the individual is associated with a foreign drug
cartel. The expungement order shall direct that there be expunged from
all official records all references to their arrest for the offense,
the institution of criminal proceedings against them, and the results
thereof.
``(3) Any individual who otherwise qualifies for an expungement
order under paragraph (2) except for the fact that they was found to be
associated with a foreign drug cartel shall have the right to petition
any Federal court under this clause for an individualized determination
for whether an expungement order should be granted. In determining
whether to enter an expungement order after such a petition the judge
shall consider the interest of public knowledge and safety, the conduct
and demonstrated desire of the petitioner to be rehabilitated and
positively contribute to the community, and the interest of the
petitioner in having the protected information expunged.
``(4) To the extent practicable, each Federal district shall notify
each individual whose arrest, conviction, or adjudication of
delinquency has been expunged pursuant to this subsection that their
arrest, conviction, or adjudication of juvenile delinquency has been
expunged, and the effect of such expungement.''; and
(3) by striking ``The effect of'' and inserting the
following:
``(5) The effect of''.
(f) Treaty Comity and Customs Violations Applicability.--This
section 102 of this Act is not meant to alter, change, create rights,
or otherwise influence or upset determinations as to admission,
exclusion, removal, waiver, denial of entry, or deportation under the
Immigration and Nationality Act of 1952 (8 U.S.C. 1101 et seq.), made
based on a violation of the laws regarding marijuana of the United
States or a signatory nation to 1961 Single Convention on Narcotic
Drugs, the 1971 Convention on Psychotropic Substances, the 1972
Protocol Amending the Single Convention on Narcotic Drugs, or the 1988
United Nations Convention Against Illicit Traffic in Narcotic Drugs and
Psychotropic Substances, before the enactment of this Act.
SEC. 103. GCA PROVISIONS.
Section 921(a) of title 18, United States Code, is amended by
adding at the end the following:
``(36) The term `unlawful user of or addicted to any
controlled substance' shall not include a person by reason of
unlawful use of or addiction to marihuana (as defined in
section 102(16) of the Controlled Substances Act, 21 U.S.C.
802(16)).''.
TITLE II--REGULATION OF MARIJUANA LIKE ALCOHOL
SEC. 201. FOOD AND DRUG ADMINISTRATION.
(a) FDA Authority Limits.--The Food and Drug Administration shall
have the same authorities with respect to cannabis products that it has
with respect to alcohol and no more.
(b) Rule of Construction.--This clause shall not be construed to
limit the Food and Drug Administration's role in regulating designated
State medical cannabis products, drugs or botanical drugs containing
cannabis or its derivatives, cannabis cosmetics, or dietary supplements
containing cannabis or its derivatives under part J of subchapter V of
chapter 9 of title 21 of the United States Code (the Federal Food,
Drug, and Cosmetic Act).
SEC. 202. DEPARTMENT OF AGRICULTURE REGULATION OF RAW CANNABIS.
(a) USDA To Regulate Raw Cannabis Farming.--The United States
Department of Agriculture shall have the sole authority and
responsibility to regulate the farming and production of raw cannabis,
including, but not limited to, the seeds, mature stalks, and
cultivation of raw cannabis as a traditional agricultural commodity.
(b) Rulemaking Authority and Timeline.--The Secretary of
Agriculture, or their designee, in order to bring raw cannabis into
line with the treatment of other traditional agricultural commodities,
shall implement the Act and enter formal rulemaking according to the
following schedule:
(1) Not later than 30 days after the date of enactment of
this Act, issue in the Federal Register a Notice of Inquiry and
Notice of Proposed Rulemaking for implementation of the Act,
requesting public comment.
(2) Not later than 60 days after the date of enactment of
this Act, issue an interim final rule. The Secretary or their
designee may being acting on State agricultural plans submitted
under section 298B of the Agricultural Marketing Act of 1946 (7
U.S.C. 1621 et seq.).
(3) Not later than 150 days after the date of enactment of
this Act, issue a final rule and publish the report called for
in subsection (d) of section 7606 of the Agricultural Act of
2014 (7 U.S.C. 5940).
(4) Not later than 180 days after the date of enactment of
this Act, begin receiving requests for licenses under this Act
and acting on State agricultural plans for cannabis under
section 298B of the Agricultural Marketing Act of 1946 (7
U.S.C. 1621 et seq.).
(5) The major rule effective delay period of 60 days shall
apply to the Final Rule described in paragraph (3), such that
the Final Rule described in paragraph (3) is effective 210 days
after the date of enactment of this Act.
(c) Raw Cannabis Defined; Not Finished Cannabis Products.--Raw
cannabis refers to marihuana within the meaning of section 801(16) of
the Controlled Substances Act (21 U.S.C. 801 et seq.) including, but
not limited to, all parts of the plant cannabis sativa L., whether
growing or not; the seeds thereof, and the mature stalks of the plant.
Raw cannabis does not include finished products meant for commercial
sale as cannabis products regulated under title III of the Federal
Alcohol Administration Act or designated State medical cannabis
products regulated under part J of subchapter V of chapter 9 of title
21, United States Code, (the Federal Food, Drug, and Cosmetic Act),
such as the resin extracted from any part of such plant; and every
compound, manufacture, salt, derivative, mixture, or preparation of
such plant or its resin (or industrial hemp).
(d) Revisions to Existing Regulations.--Not later than 30 days
after the date of enactment of this Act, without regard to the notice
and comment provisions of section 553 of title 5, United States Code,
the Secretary of Agriculture shall revise part 990 of title 7, Code of
Federal Regulations, make any conforming changes that are necessary as
a result of this section and the amendments made by this section.
(e) Right of Action.--An adversely affected person or business
shall have private right of action under the Administrative Procedure
Act (5 U.S.C. 500 et seq.) and the Mandamus Act (28 U.S.C. 1361) to
compel the Secretary or their designated officer, employee or agent of
the Department of Agriculture to issue the regulations or undertake and
finalize rulemaking required under this Act that are not issued or
published within the time frames set forth herein, or to act on
applications for the permits or licenses herein required, within the
time frames set forth herein, or to enjoin agency action. The exclusive
venue for bringing any such action shall be the District Court for the
District of Columbia. Upon demonstration of undue delay or failure to
adhere strictly to statutory deadlines, or other violations of law and
equity, equitable relief in the form of a writ of mandamus compelling
action shall issue, among such other relief as the court may see fit.
SEC. 203. ADDITION OF RAW CANNABIS TO CERTAIN AUTHORITIES RELATING TO
AGRICULTURAL PRODUCTION.
(a) Agricultural Marketing Act of 1946.--The Agricultural Marketing
Act of 1946 (7 U.S.C. 1621 et seq.) is amended by adding at the end the
following:
``Subtitle H--Raw Cannabis Production
``SEC. 298A. DEFINITIONS.
``In this subtitle:
``(1) Raw cannabis.--The term `raw cannabis' has the same
meaning as it is given in section 202(3) of the States Reform
Act.
``(2) Indian tribe.--The term `Indian Tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(4) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico; and
``(D) any other territory or possession of the
United States.
``(5) State department of agriculture.--The term `State
department of agriculture' means the agency, commission, or
department of a State Government responsible for agriculture in
the State.
``(6) Tribal government.--The term `Tribal Government'
means the governing body of an Indian Tribe.
``SEC. 298B. STATE AND TRIBAL PLANS.
``(a) Submission.--
``(1) In general.--A State or Indian Tribe desiring to have
primary regulatory authority over the production of the raw
cannabis in the State or territory of the Indian Tribe shall
submit to the Secretary, through the State department of
agriculture (in consultation with the Governor and chief law
enforcement officer of the State) or the Tribal Government, as
applicable, a plan under which the State or Indian Tribe
monitors and regulates that production as described in
paragraph (2).
``(2) Contents.--A State or Tribal plan referred to in
paragraph (1)--
``(A) shall only be required to include--
``(i) a practice to maintain relevant
information regarding land on which raw
cannabis is produced in the State or territory
of the Indian Tribe, including a legal
description of the land, for a period of not
less than 3 calendar years;
``(ii) a procedure for the effective
disposal of products that are produced in
violation of this subtitle; and
``(iii) a procedure to comply with the
enforcement procedures under subsection (d);
and
``(B) may include any other practice or procedure
established by a State or Indian Tribe, as applicable,
to the extent that the practice or procedure is
consistent with this subtitle.
``(3) Relation to state and tribal law.--
``(A) No preemption.--Nothing in this subsection
preempts or limits any law of a State or Indian Tribe
regulating the production of raw cannabis, to the
extent that law is consistent with this subtitle.
``(B) References in plans.--A State or Tribal plan
referred to in paragraph (1) may include a reference to
a law of the State or Indian Tribe regulating the
production of raw cannabis, to the extent that law is
consistent with this subtitle.
``(b) Approval.--
``(1) In general.--Not later than 60 days after receipt of
a State or Tribal plan under subsection (a), the Secretary
shall--
``(A) approve the State or Tribal plan if the State
or Tribal plan complies with subsection (a); or
``(B) disapprove the State or Tribal plan only if
the State or Tribal plan does not comply with
subsection (a).
``(2) Amended plans.--If the Secretary disapproves a State
or Tribal plan under paragraph (1)(B), the State, through the
State department of agriculture (in consultation with the
Governor and chief law enforcement officer of the State) or the
Tribal Government, as applicable, may submit to the Secretary
an amended State or Tribal plan that complies with subsection
(a).
``(c) Technical Assistance.--The Secretary may provide technical
assistance to a State or Indian Tribe in the development of a State or
Tribal plan under subsection (a).
``(d) Violations.--
``(1) In general.--A violation of a State or Tribal plan
approved under subsection (b) shall be subject to enforcement
solely in accordance with this subsection.
``(2) Negligent violations.--
``(A) In general.--A raw cannabis producer in a
State or the territory of an Indian Tribe for which a
State or Tribal plan is approved under subsection (b)
shall be subject to subparagraph (B) of this paragraph
if the State department of agriculture or Tribal
Government, as applicable, determines that the raw
cannabis producer has negligently violated the State or
Tribal plan, including by negligently--
``(i) failing to provide a legal
description of land on which the producer
produces raw cannabis; or
``(ii) failing to obtain a license or other
required authorization from the State
department of agriculture or Tribal Government,
as applicable.
``(B) Corrective action plan.--A raw cannabis
producer described in subparagraph (A) shall comply
with a plan established by the State department of
agriculture or Tribal Government, as applicable, to
correct the negligent violation, including--
``(i) a reasonable date by which the raw
cannabis producer shall correct the negligent
violation; and
``(ii) a requirement that the raw cannabis
producer shall periodically report to the State
department of agriculture or Tribal Government,
as applicable, on the compliance of the raw
cannabis producer with the State or Tribal plan
for a period of not less than the next 2
calendar years.
``(C) Result of negligent violation.--Except as
provided in subparagraph (D), a raw cannabis producer
that negligently violates a State or Tribal plan under
subparagraph (A) shall not be subject to any criminal
or civil enforcement action by the Federal Government
or any State Government, Tribal Government, or local
government other than the enforcement action authorized
under subparagraph (B).
``(D) Repeat violations.--A raw cannabis producer
that negligently violates a State or Tribal plan under
subparagraph (A) 3 times in a 5-year period shall be
ineligible to produce raw cannabis for a period of 5
years beginning on the date of the third violation.
``(3) Other violations.--If the State department of
agriculture or Tribal Government in a State or the territory of
an Indian Tribe for which a State or Tribal plan is approved
under subsection (b), as applicable, determines that a raw
cannabis producer in the State or territory has violated the
State or Tribal plan with a culpable mental state greater than
negligence--
``(A) the State department of agriculture or Tribal
Government, as applicable, shall immediately report the
raw cannabis producer to--
``(i) the Secretary of Agriculture; and
``(ii) in the case of a State department of
agriculture, the chief agricultural official of
the State; and
``(B) paragraph (1) of this subsection shall not
apply to the violation.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
``(f) Effect.--Nothing in this section prohibits the production of
raw cannabis in a State or the territory of an Indian Tribe for which a
State or Tribal plan is not approved under this section in accordance
with other Federal laws (including regulations).
``SEC. 298C. DEPARTMENT OF AGRICULTURE PLAN.
``(a) Department of Agriculture Plan.--
``(1) In general.--In the case of a State or Indian Tribe
for which a State or Tribal plan is not approved under section
298B, the production of raw cannabis in that State or the
territory of that Indian Tribe shall be subject to a plan
established by the Secretary to monitor and regulate that
production in accordance with paragraph (2).
``(2) Content.--A plan established by the Secretary under
paragraph (1) shall include--
``(A) a practice to maintain relevant information
regarding land on which raw cannabis is produced in the
State or territory of the Indian Tribe, including a
legal description of the land, for a period of not less
than 3 calendar years;
``(B) a procedure for the effective disposal of--
``(i) plants, whether growing or not, that
are produced in violation of this subtitle; and
``(ii) products derived from those plants;
``(C) a procedure to comply with the enforcement
procedures under subsection (c)(2);
``(D) a procedure for conducting annual inspections
of, at a minimum, a random sample of raw cannabis
producers to verify that raw cannabis is not produced
in violation of this subtitle; and
``(E) such other practices or procedures as the
Secretary considers to be appropriate, to the extent
that the practice or procedure is consistent with this
subtitle.
``(b) Licensing.--The Secretary shall establish a procedure to
issue licenses to raw cannabis producers in accordance with a plan
established under subsection (a).
``(c) Violations.--
``(1) In general.--In the case of a State or Indian Tribe
for which a State or Tribal plan is not approved under section
298B, it shall be unlawful to produce raw cannabis in that
State or the territory of that Indian Tribe without a license
issued by the Secretary under subsection (b).
``(2) Negligent and other violations.--A violation of a
plan established under subsection (a) shall be subject to
enforcement in accordance with paragraphs (2) and (3) of
section 298B(d), except that the Secretary shall carry out that
enforcement instead of a State department of agriculture or
Tribal Government.
``SEC. 298D. AUTHORITY TO ISSUE REGULATIONS AND GUIDELINES.
``(a) Secretary of Agriculture Sole Authority.--The Secretary shall
have sole authority and responsibility to issue Federal regulations and
guidelines that relate to the production of raw cannabis, including
Federal regulations and guidelines that relate to the implementation of
section 298B.
``(b) Right of Action.--An adversely affected person or business
shall have private right of action under the Administrative Procedure
Act (5 U.S.C. 500 et seq.) and the Mandamus Act (28 U.S.C. 1361) to
compel the Secretary or the designated officer, employee or agent of
the Department of Agriculture to issue regulations or undertake and
finalize rulemaking required under this Act that are not issued or
published within the time frames set forth herein, or to act on
applications for the permits or licenses herein required, within the
time frames set forth herein, or to enjoin agency action. The exclusive
venue for bringing any such action shall be the District Court for the
District of Columbia. Upon demonstration of undue delay or failure to
adhere strictly to statutory deadlines, or other violations of law and
equity, equitable relief in the form of a writ of mandamus compelling
action shall issue, among such other relief as the court may see
fit.''.
(b) Funding for Raw Cannabis Research.--
(1) Supplemental and alternative crops.--Section
1473D(c)(3)(E) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3319d(c)(3)(E)) is amended by striking ``(including hemp (as
defined in section 297A of the Agricultural Marketing Act of
1946))'' and by inserting ``(including hemp and raw cannabis
(as defined in sections 297A and 298A of the Agricultural
Marketing Act of 1946, respectively))'' after ``material''.
(2) Critical agricultural materials.--Section 5(b)(9) of
the Critical Agricultural Materials Act (7 U.S.C. 178c(b)(9))
is amended by striking ``(including hemp (as defined in section
297A of the Agricultural Marketing Act of 1946))'' and by
inserting ``(including hemp and raw cannabis (as defined in
sections 297A and 298A of the Agricultural Marketing Act of
1946, respectively))'' after ``hydrocarbon-containing plants''.
(c) Legitimacy of Raw Cannabis Research.--Section 7606 of the
Agricultural Act of 2014 (7 U.S.C. 5940) is amended--
(1) in subsection (b), by inserting ``or raw cannabis''
after each appearance of ``hemp'' in subsection (b); and
(2) by adding at the end the following:
``(d) Raw Cannabis Study and Report.--
``(1) In general.--The Secretary shall conduct a study of
agricultural pilot programs to determine the economic viability
of the domestic production and sale of raw cannabis.
``(2) Report.--Not later than 150 days after the date of
enactment of this subsection, the Secretary shall submit to
Congress a report describing the results of the study conducted
under paragraph (1).''.
SEC. 204. ADMINISTRATION LIKE ALCOHOL UNDER TAX AND TRADE BUREAU.
(a) Addition of Cannabis to Certain Legal Authorities Relating to
Intoxicating Liquors.--
(1) Wilson act.--The Act of August 8, 1890 (commonly known
as the Wilson Act or the Original Packages Act; 27 U.S.C. 121),
is amended--
(A) by inserting ``, or cannabis,'' after
``intoxicating liquors or liquids''; and
(B) by striking ``such liquids or liquors'' and
inserting ``such liquids, liquors, or cannabis''.
(2) Webb-kenyon act.--The Act of March 1, 1913 (commonly
known as the Webb-Kenyon Act; 27 U.S.C. 122), is amended--
(A) by inserting ``cannabis or any'' after
``whatsoever, of any'';
(B) by inserting ``cannabis or'' after ``which
said''; and
(C) by adding at the end of section 122b the
following new subsection:
``(c) Cannabis Regulation.--
``(1) The Secretary of the Treasury, acting through the
Alcohol and Tobacco Tax and Trade Bureau of the Department of
the Treasury shall have primary authority regarding Federal
regulation of the interstate and international trade in, and
promotion, sale, and distribution of, cannabis products, under
the terms of the Administrative Procedure Act (5 U.S.C. 500 et
seq.).
``(2) The Secretary shall not later than 30 days after the
date of enactment of this Act--
``(A) issue in the Federal Register a Notice of
Inquiry and Notice of Proposed Rulemaking for
implementation of the Act, requesting public comment on
the promotion, sale, and distribution of, cannabis
products; and
``(B) issue emergency rules preventing advertising
of Cannabis Products to underage youth.
``(3) The Secretary shall, not later than 60 days after the
date of enactment of this Act, issue an interim final rule
regarding the promotion, sale, and distribution of cannabis
under this Act and a draft application form for permits under
title III of the Federal Alcohol Administration Act.
``(4) The Secretary shall, not later than 150 days after
the date of enactment of this Act, issue a final rule regarding
the promotion, sale, and distribution of cannabis under this
Act. The Secretary may begin receiving permit applications at
that time.
``(5) The Secretary shall, not later than 180 days after
the date of enactment of this Act, begin receiving requests for
licenses under this Act and acting on State agricultural plans
for cannabis under section 298B of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1621 et seq.).
``(6) The major rule effective delay period of 60 days
shall apply to the Final Rule described in paragraph (3), such
that the Final Rule described in paragraph (3) is effective 210
days after the date of enactment of this Act.
``(7) The Secretary shall expeditiously develop and
implement a track-and-trace system for cannabis in interstate
commerce.
``(8) Not later than 1 year after the date of enactment of
this Act, the Secretary shall publish an interim final rule,
and not later than 2 years after such date of enactment the
Secretary shall finalize regulations regarding the promotion,
sale, and distribution of cannabis products that occur through
means other than a direct, face-to-face exchange between a
retailer and a consumer, in order to prevent the sale and
distribution of cannabis products to individuals who have not
attained the age of 21, including requirements for age
verification.
``(d) Rule of Construction.--It is the intention of Congress that
this Act be read consistently with the jurisprudence interpreting the
Acts amended above and not as superseding or changing prior
construction of the Acts with respect to the laws of the United States
generally or the article I Commerce Clause.''.
(3) Victims of trafficking and violence protection act of
2000.--Section 2 of the Victims of Trafficking and Violence
Protection Act of 2000 (27 U.S.C. 122a) is amended--
(A) in subsection (a)--
(i) by redesignating paragraphs (3) and (4)
as paragraphs (4) and (5), respectively; and
(ii) by inserting after paragraph (2) the
following new paragraph:
``(3) the term `marijuana' has the meaning given the term
`marihuana' in section 102 of the Controlled Substances Act (21
U.S.C. 802);''; and
(B) in subsections (b) and (c), by inserting ``or
marijuana'' after ``intoxicating liquor'' each place it
appears.
SEC. 205. TRANSFERRING AGENCY FUNCTIONS WITH REGARD TO MARIJUANA.
(a) Transfer of Jurisdiction From Drug Enforcement Administration
to Bureau of Alcohol, Tobacco, Firearms and Explosives.--The functions
of the Attorney General, acting through the Administrator of the Drug
Enforcement Administration relating to cannabis enforcement, shall
hereafter be administered by the Attorney General, acting through the
Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
(b) Redesignation of Bureau of Alcohol, Tobacco, Firearms and
Explosives as Bureau of Alcohol, Tobacco, Cannabis, Firearms and
Explosives.--
(1) Redesignation.--The Bureau of Alcohol, Tobacco,
Firearms and Explosives is hereby renamed the ``Bureau of
Alcohol, Tobacco, Cannabis, Firearms and Explosives''.
(2) References.--Any reference to the Bureau of Alcohol,
Tobacco, Firearms and Explosives in any law, regulation, map,
document, record, or other paper of the United States shall be
deemed to be a reference to the Bureau of Alcohol, Tobacco,
Cannabis, Firearms and Explosives.
(c) Redesignation of Alcohol and Tobacco Tax and Trade Bureau as
Alcohol, Tobacco, and Cannabis Tax and Trade Bureau.--
(1) Redesignation.--Section 1111(d) of the Homeland
Security Act of 2002 (6 U.S.C. 531(d)) is amended by striking
``Tax and Trade Bureau'' each place it appears and inserting
``Alcohol, Tobacco, and Cannabis Tax and Trade Bureau''.
(2) References.--Any reference to the Tax and Trade Bureau
or the Alcohol and Tobacco Tax and Trade Bureau in any law,
regulation, map, document, record, or other paper of the United
States shall be deemed to be a reference to the Alcohol,
Tobacco, and Cannabis Tax and Trade Bureau.
SEC. 206. TRANSITION SAFE HARBOR AND ADMINISTRATIVE REMEDIES.
(a) Safe Harbor.--No person shall be deemed to be in violation of
this Act for engaging in interstate commerce in cannabis products or
designated State medical cannabis products, possessing cannabis
products or designated State medical cannabis products, producing or
manufacturing cannabis products or designated State medical cannabis
products, or farming raw cannabis, until after the Secretary of the
Treasury promulgates final regulations in accordance with this Act.
Nothing in this section shall be construed to impact in any respect
obligations of any person to comply with otherwise applicable cannabis
laws of the State, Territory, or Possession of the United States in
which they are doing business before the effective date of this Act.
(b) Private Right of Action.--Any State-licensed cannabis business
or adversely affected person shall have private right of action under
the Administrative Procedure Act (5 U.S.C. 500 et seq.) and the
Mandamus Act (28 U.S.C. 1361) to compel any officer, employee or agency
of the United States to promulgate regulations required under this Act
that are not promulgated within the time frames set forth herein or to
enjoin agency action. The exclusive venue for bringing any such action
shall be the District Court for the District of Columbia. Upon
demonstration of undue delay or failure to adhere strictly to statutory
deadlines, equitable relief in the form of a writ of mandamus
compelling action shall issue, among such other relief as the court may
see fit.
(c) The term ``State'' as used in this section 206 includes the
District of Columbia, Puerto Rico, and any commonwealth, territory,
enclave, or Indian Tribe of the United States.
SEC. 207. UNFAIR ADVERTISING PRACTICES AND 21 AGE LIMIT.
(a) In General.--It shall be unlawful for any person engaged in the
business of importing marijuana into the United States, or cultivating,
producing, manufacturing, packaging, or warehousing marijuana, or
purchasing marijuana for resale at wholesale, directly or indirectly or
through an affiliate, to publish or disseminate or cause to be
published or disseminated by radio broadcast, or in any newspaper,
periodical or other publication or by any sign or outdoor advertisement
or any other printed or graphic matter, any advertisement of marijuana,
if such advertisement is in, or is calculated to induce sales in,
interstate or foreign commerce, or is disseminated by mail, unless such
advertisement is in conformity with such regulations, to be prescribed
by the Secretary of the Treasury, or the Secretary's delegate (referred
to in this section as the ``Secretary''), as will--
(1) prevent deception of the consumer with respect to the
products advertised and as will prohibit, irrespective of
falsity, such statements relating to manufacturing processes,
analyses, guaranties, and scientific or irrelevant matters as
the Secretary finds to be likely to mislead the consumer;
(2) provide the consumer with adequate information as to
the identity and quality of the products advertised, the
characteristics thereof, and the person responsible for the
advertisement;
(3) prohibit statements that are disparaging of a
competitor's products or are false, misleading, obscene, or
indecent; and
(4) prevent statements inconsistent with any statement on
the labeling of the products advertised.
(b) Nonapplication to Publishers and Broadcasters.--The
prohibitions of this section and regulations thereunder shall not apply
to the publisher of any newspaper, periodical, or other publication, or
radio broadcaster, or provider of an interactive computer service
within the meaning of the Communications Decency Act (47 U.S.C. 230 et
seq.), unless such publisher or radio broadcaster is engaged in the
business of importing marijuana into the United States, or cultivating,
producing, manufacturing, packaging, or warehousing marijuana, or
purchasing marijuana for resale at wholesale, directly or indirectly or
through an affiliate.
(c) Protect Kids.--Not later than 30 days after the date of
enactment of this Act, the Secretary of the Treasury shall promulgate
regulations that--
(1) require restrictions on the advertising and promotion
of products related to cannabis, if the Secretary determines
that such regulation would be appropriate for the protection of
the public health, taking into account--
(A) the risks and benefits to the population of
individuals age 21 and under, including users and
nonusers of cannabis products;
(B) the increased or decreased likelihood that
existing users of cannabis products who are age 18 and
under will stop using such products; and
(C) the increased or decreased likelihood that
individuals age 21 and under who do not use cannabis
products will start using such products; and
(2) impose restrictions on the advertising and promotion of
products related to cannabis consistent with and to the full
extent permitted by the First Amendment to the Constitution of
the United States.
(d) Establishment of Federal Minimum Cannabis Age.--Chapter 1 of
title 23 of the United States Code, is amended by adding at the end the
following (and conforming the table of sections accordingly):
``SEC. 191. WITHHOLDING OF FUNDS FOR NONCOMPLIANCE.
``(a) In General.--The Secretary of Transportation shall withhold 8
per centum of the amount required to be apportioned to any State under
each of sections 104(b)(1), 104(b)(3), and 104(b)(4) of title 23 of the
United States Code on the first day of each fiscal year after the
second fiscal year beginning after September 30, 2019, in which the
purchase or public possession in such State of cannabis by a person who
is less than twenty-one years of age is lawful.
``(b) Effect of Withholding of Funds.--No funds withheld under this
section from apportionment to any State after September 30, 2019, shall
be available for apportionment to that State.
``(c) Cannabis Defined.--As used in this section, the term
`cannabis' means the same as `marihuana' as defined in section 102(16)
of the Controlled Substances Act (21 U.S.C. 802(16)).
``(d) Medical Exception.--The Secretary shall not apply any
withholding under this section to States that lawfully permit the use
of designated State medical cannabis products, within the meaning of
part J of subchapter V of chapter 9 of title 21, United States Code,
(the Federal Food, Drug, and Cosmetic Act), by persons under the age of
21 on the recommendation or prescription of a qualified medical
professional consistent with State law.''.
SEC. 208. FEDERAL CANNABIS ADMINISTRATION UNDER THE FEDERAL ALCOHOL
ADMINISTRATION ACT.
The Federal Alcohol Administration Act (27 U.S.C. 201 et seq.) is
amended by adding at the end the following:
``TITLE III--CANNABIS
``Sec. 301. Unlawful business without cannabis permit.
``Sec. 302. Procedure for issuance of cannabis permit.
``Sec. 303. Definitions.
``SEC. 301. UNLAWFUL BUSINESS WITHOUT CANNABIS PERMIT.
``In order to regulate effectively interstate and foreign commerce
in cannabis and to protect the revenue and enforce the postal laws with
respect to cannabis:
``(a) In General.--Notwithstanding section 205 of the States Reform
Act, every person, before commencing commerce in cannabis, and at such
other time as the Secretary shall by regulation prescribe, shall make
application for the permit provided for in section 302. The application
shall be in such form as the Secretary shall prescribe and shall set
forth, truthfully and accurately, the information called for on the
form.
``(b) Import.--It shall be unlawful, except pursuant to a permit
issued under this title by the Secretary of the Treasury (hereinafter
in this title referred to as the `Secretary')--
``(1) to engage in the business of importing cannabis into
the United States; or
``(2) for any person so engaged to sell, offer or deliver
for sale, contract to sell, or ship, in interstate or foreign
commerce, directly or indirectly or through an affiliate,
cannabis so imported.
``(c) Manufacture and Sale.--It shall be unlawful, except pursuant
to a permit issued under this title by the Secretary--
``(1) to engage in the business of producing,
manufacturing, packaging, or warehousing cannabis; or
``(2) for any person so engaged to sell, offer or deliver
for sale, contract to sell, or ship, in interstate or foreign
commerce, directly or indirectly or through an affiliate,
cannabis so produced, manufactured, packaged, or warehoused.
``(d) Resale.--It shall be unlawful, except pursuant to a permit
issued under this title by the Secretary--
``(1) to engage in the business of purchasing cannabis for
resale at wholesale; or
``(2) for any person so engaged to receive or to sell,
offer or deliver for sale, contract to sell, or ship, in
interstate or foreign commerce, directly or indirectly or
through an affiliate, cannabis so purchased.
``(e) Remedies for Violations.--
``(1) Civil fine.--
``(A) Generally.--Whoever violates this section
shall be fined not more than $1,000.
``(B) Settlement in compromise.--The Secretary may
decide not to refer a violation of this section to the
Attorney General for prosecution but instead to collect
a payment from the violator of no more than $500 for
that violation.
``(2) Civil action for relief.--The Attorney General may,
in a civil action, obtain appropriate relief to prevent and
restrain a violation of this title.
``SEC. 302. PROCEDURE FOR ISSUANCE OF CANNABIS PERMIT.
``(a) Who Entitled To Permit.--
``(1) Generally.--The Secretary shall issue a permit for
operations requiring a permit under section 301, and the
applicant shall be entitled to such, unless the Secretary finds
that--
``(A) the applicant (or if the applicant is a
corporation, any of its officers, directors, or
principal stockholders) has, prior to the date of
application, been convicted of a disqualifying offense;
``(B) the applicant is, by reason of business
experience, financial standing, or trade connections,
not likely to commence operations within a reasonable
period or to maintain such operations in conformity
with Federal law;
``(C) that the operations proposed to be conducted
by the applicant are in violation of the law of the
State in which they are to be conducted; or
``(D) the applicant has failed to disclose any
material information required or made any material
false statement in the application therefor.
``(2) Disqualifying offenses.--For the purposes of
paragraph (1):
``(A) Generally.--Except as provided for in
subparagraph (B), a disqualifying offense is an offense
related to the production, consumption, or sale of
marijuana that is--
``(i) a felony under Federal or State law,
if the conviction occurred not later than 3
years before the date of application; or
``(ii) a misdemeanor under Federal or State
law, if the conviction occurred not later than
1 year before the application.
``(B) Excluded offenses.--A disqualifying offense
does not include a Federal or State offense based on
conduct that--
``(i) was legal under State law in the
State when and where the conduct took place; or
``(ii) is as of the date of the
application, no longer an offense in that
State.
``(C) State second chances practices safe harbor.--
A State has examined the offense or offenses in
question, or is in the process of examining, for the
issuance of a State license to engage in cannabis
commerce, and has awarded the applicant a State license
to engage in cannabis commerce.
``(3) Grandfathering and prospective comity for state
licensure.--
``(A) Grandfathering.--Any person licensed by a
State cannabis regulatory authority before the passage
of this Act to produce, warehouse, distribute or
otherwise transport cannabis products, and in good
standing with that regulatory authority, shall be
issued necessary Federal permits, licenses, or the like
to engage in federally regulated commerce upon
application for the same to the Alcohol and Tobacco Tax
and Trade Bureau of the Department of the Treasury.
``(B) Prospective federal-state permit comity.--Any
person licensed by a State cannabis regulatory
authority after the passage of this Act to produce,
warehouse, distribute or otherwise transport cannabis
products, and in good standing with that regulatory
authority shall be issued necessary Federal permits to
engage in federally regulated commerce upon application
for the same.
``(C) Rule of construction.--Nothing in this Act,
or the lawful exercise of rights or privileges granted
herein, shall be construed to infringe upon or
prejudice the ability of a State-licensed cannabis
business to apply for a permit to engage in interstate
or foreign commerce.
``(b) Refusal of Permit; Hearing.--If upon examination of any
application for a permit the Secretary has reason to believe that the
applicant is not entitled to such permit, the Secretary shall so notify
the applicant and, upon request by the applicant, afford the applicant
due notice and opportunity for hearing on the application within the
meaning of the Administrative Procedure Act (5 U.S.C. 500 et seq.). If
the Secretary, after affording such notice and opportunity for hearing,
still finds that the applicant is not entitled to a permit hereunder,
the Secretary shall by order deny the application stating the findings
that are the basis for the order. The provisions of 27 CFR part 200--
Rules of Practice in Permit Proceedings, as amended from time to time,
shall be applicable to the jurisdiction, powers, and duties of the
Secretary of the Treasury under this section.
``(c) Form of Application.--
``(1) Generally.--The Secretary shall--
``(A) prescribe within 60 days of the effective
date of this Act, and consistent with the Paperwork
Reduction Act, the manner and form of all applications
for permits under this title (including the facts to be
set forth therein);
``(B) prescribe the form of all permits; and
``(C) specify in any permit the authority conferred
by the permit and the conditions of that permit in
accordance with this title.
``(2) Separate types of applications and permits.--To the
extent deemed necessary by the Secretary for the efficient
administration of this title, the Secretary may require
separate applications and permits with respect to the various
classes of cannabis, and with respect to the various classes of
persons entitled to permits under this title.
``(3) Disclaimer.--The issuance of a permit under this
title does not deprive the United States of any remedy for a
violation of law.
``(d) Conditions.--A permit under this title shall be conditioned
upon the following:
``(1) Compliance.--Compliance with all applicable Federal
laws relating to production, sale and consumption of cannabis,
as well as compliance with all applicable State laws relating
to said activities in the State in which the permit applicant
resides and does business.
``(2) User fee.--Payment to the Secretary of a reasonable
permit fee in an amount determined by the Secretary to be
sufficient collectively over time to offset the cost of
implementing and overseeing all aspects of cannabis regulation
by the Federal Government. For the first 3 years following
promulgation of regulations by the Secretary under section 204
of the States Reform Act, in order to ensure small business
access, such fee may not exceed $10,000 per permit.
``(3) SBA fee waiver.--The Secretary shall waive the user
fee for an applicant that is a small business or a socially and
economically disadvantaged business that is a business within
the meaning of the Small Business Act of 1953 (15 U.S.C.
chapter 14A), as interpreted by the Administrator of the Small
Business Administration.
``(e) Revocation, Suspension, and Annulment.--
``(1) Generally.--After due notice and opportunity for
hearing consistent with the Administrative Procedure Act (5
U.S.C. 500 et seq.), the Secretary may order a permit under
this title--
``(A) revoked or suspended for such period as the
Secretary deems appropriate, if the Secretary finds
that the permittee has willfully violated any of the
conditions of the permit, but for a first violation of
the conditions the permit shall be subject to
suspension only;
``(B) be revoked if the Secretary finds that the
permittee has not engaged in the operations authorized
by the permit for a period of more than 2 years; or
``(C) be annulled if the Secretary finds that the
permit was procured through fraud, or
misrepresentation, or concealment of material fact.
``(2) Order to state basis for order.--The order shall
state the findings that are the basis for the order.
``(f) Service of Orders.--Each order of the Secretary with respect
to any denial of application, suspension, revocation, annulment, or
other proceedings, shall be served--
``(1) in person by any officer or employee of the Secretary
designated by the Secretary or any internal revenue or customs
officer authorized by the Secretary for the purpose; or
``(2) by mailing the order by registered mail, addressed to
the applicant or respondent at their last known address in the
records of the Secretary.
``(g) Proceedings.--The provisions of 27 CFR part 200--Rules of
Practice in Permit Proceedings, as amended from time to time, shall be
applicable to the jurisdiction, powers, and duties of the Secretary of
the Treasury under this section.
``(h) Duration.--
``(1) General rule.--Except as otherwise provided in this
subsection, a permit issued under this title shall continue in
effect until suspended, revoked, or annulled as provided in
this title, or voluntarily surrendered.
``(2) Effect of transfer.--If operations under a permit
issued under this title are transferred, the permit
automatically terminates 30 days after the date of that
transfer, unless an application is made by the transferee
before the end of that period for a permit under this title for
those operations. If such an application is made, the
outstanding permit shall continue in effect until such
application is finally acted on by the Secretary.
``(3) Definition of transfer.--For the purposes of this
section, the term `transfer' means any change of ownership or
control, whether voluntary or by operation of law.
``(i) Appeal and Judicial Review.--
``(1) In general.--An appeal may be taken by the permittee
or applicant for a permit from any order of the Secretary of
the Treasury denying an application for, or suspending,
revoking, or annulling, a basic permit. Such appeal shall be
taken by filing, in the court of appeals of the United States
within any circuit wherein such person resides or has their
principal place of business, or in the United States Court of
Appeals for the District of Columbia, within 60 days after the
entry of such order, a written petition praying that the order
of the Secretary be modified or set aside in whole or in part.
A copy of such petition shall be forthwith transmitted by the
clerk of the court to the Secretary, or any officer designated
by the Secretary for that purpose, and thereupon the Secretary
shall file in the court the record upon which the order
complained of was entered, as provided in section 2112 of title
28. Upon the filing of such petition such court shall have
exclusive jurisdiction to affirm, modify, or set aside such
order, in whole or in part. No objection to the order of the
Secretary shall be considered by the court unless such
objection shall have been urged before the Secretary or unless
there were reasonable grounds for failure so to do. The finding
of the Secretary as to the facts, if supported by substantial
evidence, shall be conclusive. If any party shall apply to the
court for leave to adduce additional evidence, and shall show
to the satisfaction of the court that such additional evidence
is material and that there were reasonable grounds for failure
to adduce such evidence in the proceeding before the Secretary,
the court may order such additional evidence to be taken before
the Secretary and to be adduced upon the hearing in such manner
and upon such terms and conditions as to the court may seem
proper. The Secretary may modify their findings as to the facts
by reason of the additional evidence so taken, and they shall
file with the court such modified or new findings, which, if
supported by substantial evidence, shall be conclusive, and
their recommendation, if any, for the modification or setting
aside of the original order. The judgment and decree of the
court affirming, modifying, or setting aside, in whole or in
part, any such order of the Secretary shall be final, subject
to review by the Supreme Court of the United States upon
certiorari or certification as provided in section 1254 of
title 28. The commencement of proceedings under this subsection
shall, unless specifically ordered by the court to the
contrary, operate as a stay of the Secretary's order. These
proceedings shall be subject to the requirements of the
Administrative Procedure Act (5 U.S.C. 500 et seq.). Should the
permitee substantially prevail, such permitee shall be entitled
to attorneys' fees and costs associated with compelling a
decision under this section.
``(2) Additional applicant mandamus remedy.--Should the
Secretary fail to make a permit application decision within
ninety days of submission of a completed application, an
applicant shall have the right to compel a decision and
issuance of a permit pursuant to section 1361 of title 28,
United States Code, in any United States district court where
the applicant resides or does business or in the United States
District Court for the District of Columbia. Should the
applicant substantially prevail, such applicant shall be
entitled to attorneys' fees and costs associated with
compelling a decision under this section. Such mandamus remedy
shall be in addition to any other remedies available to
applicants under the Administrative Procedure Act.
``(j) Statute of Limitations.--
``(1) In general.--No proceeding for the suspension or
revocation of a permit for violation of any condition thereof
relating to compliance with Federal law shall be instituted by
the Secretary more than 18 months after conviction of the
violation of Federal law, or, if no conviction has been had,
more than 3 years after the violation occurred.
``(2) Compromise.--No permit shall be suspended or revoked
for a violation of any such condition thereof if the alleged
violation of Federal law has been compromised by any officer of
the Government authorized to compromise such violation.
``(k) Permit Application.--
``(1) In general.--Applications for permits to engage in
any of the operations set forth in this section must be made on
the required form. The application will include all data,
written statements, affidavits, documents, or other evidence
submitted in support of the application, or upon a hearing.
``(2) Confidentiality.--All financial information submitted
by a permit applicant in connection with an application shall
be deemed confidential business information and exempt from
disclosure under the Freedom of Information Act.
``(3) Incomplete or incorrectly executed applications.--
Incomplete or incorrectly executed applications will not be
acted upon, but the applicant shall be entitled to file a new
application without prejudice, or to complete the application
already filed. The Secretary shall notify the applicant of such
defects in the application within 90 days of application or
within 10 days of the discovery of the defect after the first
30 days following the filing of the application.
``(4) Change in ownership, management, or control of the
applicant.--In the event of any change in the ownership,
management, or control of the applicant (in case of a
corporation, any change in the officers, directors, or persons
holding more than 10 percent of the corporate stock), after the
date of filing of any application for a permit and prior to
final action on such application, the applicant shall notify
the appropriate officer immediately of such change.
``(5) Individual plant or premises.--An application for a
basic permit must be filed, and permit issued, to cover each
individual plant or premises where any of the businesses
specified in this section is engaged in.
``(6) Deadline.--Within 90 days of receipt of an
application, the Secretary or their designee must notify the
applicant whether the application has been approved or denied.
This 90-day period may be extended once, by an additional 90
days, if the Secretary or their designee finds that unusual
circumstances require additional time to consider the issues
presented by an application. If the Secretary or the
appropriate designee extends the period, he or she must notify
the applicant by letter, along with a brief explanation of the
unusual circumstances causing the time period for consideration
of the application to be extended. If the applicant receives no
decision from the Secretary or their designee within the time
periods set forth in this paragraph, the applicant may file a
mandamus action as provided for in this section.
``SEC. 303. DEFINITIONS.
``In this title--
``(1) the term `marijuana' or `cannabis' has the same
meaning given the term `marihuana' in section 102 of the
Controlled Substances Act (21 U.S.C. 121); and
``(2) the term `State' includes the District of Columbia,
Puerto Rico, and any commonwealth, territory, enclave, Indian
Tribe, or possession of the United States.''.
TITLE III--DESIGNATED STATE MEDICAL CANNABIS PRODUCT SAFETY ACT
SEC. 301. GRANDFATHERING OF STATE MEDICAL CANNABIS PRODUCTS INTO
INTERSTATE COMMERCE.
Subchapter V of chapter 9 of title 21 of the United States Code
(the Federal Food, Drug, and Cosmetic Act) is amended by adding at the
end the following new part:
``PART J--DESIGNATED STATE MEDICAL CANNABIS PRODUCTS
``Sec. 360ggg. Definitions.
``Sec. 360ggg-1. Regulation of medical cannabis products.
``Sec. 360ggg-2. Cannabis-infused foods, beverages, and supplements.
``Sec. 360ggg-3. Cannabis cosmetics.
``Sec. 360ggg-4. Liability and method of payment.
``Sec. 360ggg-5. Private right of action and administrative remedy.
``SEC. 360GGG. DEFINITIONS.
``In this part:
``(1) The term `designated State medical cannabis
product'--
``(A) means an article that is produced by a State
and federally licensed or permitted medical cannabis
business, pursuant to a State medical cannabis program
and contains `marihuana', as defined in section 102(16)
of the Controlled Substances Act;
``(B) means any other article that contains either
`marihuana', as defined in section 102 of the
Controlled Substances Act, deemed appropriate by the
Secretary, after taking into account any
investigational new drug application or investigational
new animal drug application for the same medical
cannabis product submitted in accordance with
regulations applicable to such applications in title 21
of the Code of Federal Regulations, unless any period
of exclusivity for a new drug under section
355(c)(3)(E)(ii) of this title or section
355(j)(5)(F)(ii) of this title, or the extension of any
such period under section 355a of this title, or any
period of exclusivity for a new animal drug under
section 360b(c)(2)(F) of this title, applicable to such
medical cannabis product has not expired;
``(C) means any article that contains either
`marihuana', as defined in section 102(16) of the
Controlled Substances Act, that also meets the
standards set forth in an official compendium; and
``(D) does not mean articles or cannabis products
produced and intended for nonmedical use, such as those
regulated under title III of the Federal Alcohol
Administration Act (27 U.S.C. 201 et seq.).
``(2) The term `State' includes the District of Columbia,
Puerto Rico, and any commonwealth, territory, enclave, Indian
Tribe, or possession of the United States.
``SEC. 360GGG-1. REGULATION OF MEDICAL CANNABIS PRODUCTS.
``(a) Medical Cannabis Regulation and Authority.--The Food and Drug
Administration shall have jurisdiction over the regulation of
designated State medical cannabis products described herein.
``(b) Certification of Designated State Medical Cannabis
Products.--
``(1) Submission.--Beginning 210 days after the effective
date of this Act, any person who seeks to initially introduce
or deliver for introduction a designated State medical cannabis
product into interstate commerce may file with the Secretary a
request for certification as a designated State medical
cannabis product. Any such request shall contain the following
information:
``(A) A description of the designated State medical
cannabis product.
``(B) The name and address of the sponsor.
``(C) The name and address of the facility or
facilities where the designated State medical cannabis
product is or will be cultivated and manufactured.
``(D) Any other information deemed appropriate by
the Secretary to determine whether the designated State
medical cannabis product is in fact a designated State
medical cannabis product.
``(2) Grant of certification.--The certification requested
under paragraph (1) is deemed to be granted unless, within 30
days of the filing of such request, the Secretary finds that--
``(A) the designated State medical cannabis product
subject to the certification is not in fact a
designated State medical cannabis product;
``(B) the request does not contain the information
required under paragraph (1) or otherwise lacks
sufficient information to permit the Secretary to
determine that the designated State medical cannabis
product is in fact a designated State medical cannabis
product; or
``(C) denying the request is necessary to protect
the public health.
``(3) Effect of certification.--
``(A) In general.--
``(i) Approved uses.--A designated State
medical cannabis product for which a
certification is granted under paragraph (2) is
deemed, alone or in combination, as medically
appropriate, with another designated State
medical cannabis product or products for which
a certification or certifications have been
granted, to be sold in interstate commerce as a
non-drug designated State medical cannabis
product, for the following indications for use:
``(I) The treatment of arthritis.
``(II) The treatment of
chemotherapy-induced and non-
chemotherapy-induced nausea and
vomiting.
``(III) The stimulation of
appetite.
``(IV) The treatment of the
symptoms of patients with HIV/AIDS or
for anorexia associated with AIDS.
``(V) The treatment of temporary or
chronic pain and analgesia.
``(VI) The treatment of muscle
spasms.
``(VII) The treatment of insomnia
and restlessness.
``(VIII) The treatment of post-
traumatic stress disorder.
``(IX) The treatment of chronic
pain due to sickle cell disease.
``(X) Any other indication for use
consistent with State medical cannabis
law and medical cannabis labeling
practice in the State in which the
product is to be sold to the end
consumer.
``(XI) Any other indication for use
for a designated State medical cannabis
product or combination of designated
State medical cannabis products deemed
appropriate by the Secretary, unless
any period of exclusivity for a new
drug under clause (iii) or (iv) of
section 355(c)(3)(E) of this title,
clause (iii) or (iv) of section
355(j)(5)(F) of this title, or section
360cc of this title, or the extension
of any such period under section 355a
of this title, applicable to such
indication for use for such medical
cannabis product or combination of
products has not expired.
``(ii) Labeling.--The requirements of
sections 353(b)(4) and 352(f) of this title are
deemed to have been met for a designated State
medical cannabis product if the labeling on the
final use container for such medical cannabis
product bears--
``(I) the information required by
section 353(b)(4) of this title;
``(II) a warning statement
concerning the use of the medical
cannabis products as determined by the
Secretary by regulation; and
``(III) appropriate directions and
warnings concerning storage and
handling.
``(B) Inapplicability of exclusivity provisions.--
``(i) No exclusivity for a certified
medical cannabis product. No designated State
medical cannabis product deemed under
subparagraph (A)(i) to have in effect an
approved application is eligible for any period
of exclusivity for a new drug under section
355(c), 355(j), or 360cc of this title, or the
extension of any such period under section 355a
of this title, on the basis of such deemed
approval.
``(ii) Effect on certification.--No period
of exclusivity under section 355(c), 355(j), or
section 360cc of this title, or the extension
of any such period under section 355a of this
title, with respect to an application for a
drug product, shall prohibit, limit, or
otherwise affect the submission, grant, or
effect of a certification under this section,
except as provided in subsection
(a)(3)(A)(i)(VIII) and section 360ddd(1)(H) of
this title.
``(4) Withdrawal, suspension, or revocation of approval.--
``(A) Withdrawal, suspension of approval.--Nothing
in this part limits the Secretary's authority to
withdraw or suspend approval of a drug product,
including a designated State medical cannabis product
deemed under this section to have in effect an approved
application under section 355 or section 360b of this
title.
``(B) Revocation of certification.--The Secretary
may revoke the grant of a certification under paragraph
(2) if the Secretary determines that the request for
certification contains any material omission or
falsification.
``(5) Prescription or recommendation requirement for
designated state medical cannabis products.--
``(A) In general.--A designated State medical
cannabis product is not approved for use without a
prescription by a qualified medical professional or a
recommendation by a qualified medical professional as
defined by the law of the State in which the qualified
medical professional is providing said prescription or
recommendation.
``(B) Labeling.--For medical cannabis products
provided pursuant to subparagraph (A), the Secretary
shall issue labeling requirements in accord with
section 7 of this Act.
``(6) No drug preclusion.--Notwithstanding any other law,
section 301(ll) of the Federal Food, Drug, and Cosmetic Act,
the `drug preclusion' rule, shall not apply to `marihuana', as
defined in section 102(16) of the Controlled Substances Act.
Notwithstanding any other Federal law or provision of the
Federal Food, Drug, and Cosmetic Act, the Food and Drug
Administration shall treat cannabis without respect to the
doctrine of drug preclusion. Nothing in this provision is meant
to diminish or otherwise affect the ability of the Food and
Drug Administration to regulate drug products (as defined in
section 201(g) of the Federal Food, Drug, and Cosmetic Act),
including those containing `marihuana', (as defined in section
102(16) of the Controlled Substances Act) that are intended and
marketed for use as a `drug' rather than a `designated State
medical cannabis product'.
``(7) Rulemaking authority and timeline.--The Commissioner
of the Food and Drug Administration, or their designee, shall
implement the Act and enter formal rulemaking, consistent with
the Administrative Procedure Act (5 U.S.C. 500 et seq.),
according to the following schedule:
``(A) Not later than 30 days after the date of
enactment of this Act, publish in the Federal Register
a Notice of Inquiry and Notice of Proposed Rulemaking
for implementation of the Act, requesting public
comment.
``(B) Not later than 60 days after the date of
enactment of this Act--
``(i) issue an interim final rule for
implementation and labeling regulations for
certification of designated State products, and
dietary supplements, food additives, cosmetics,
and topicals containing cannabis; and
``(ii) publish a draft form of the Request
for Certification form for designated State
medical products.
``(C) Not later than 150 days after the date of
enactment of this Act, issue a final rule for
implementation and labeling regulations for
certification of designated State products, and dietary
supplements, food additives, cosmetics, and topicals
containing cannabis. The Commissioner or their designee
may begin receiving requests for Certification of
designated State medical cannabis products, and
applications, notifications, and the like, for dietary
supplements, food additives, cosmetics, and topicals
containing cannabis.
``(D) Not later than 180 days after the date of
enactment of this Act, the Commissioner or their
designee shall begin receiving Requests for
Certification of designated State medical cannabis
products, and applications, notifications, and the
like, for dietary supplements, food additives,
cosmetics, and topicals containing cannabis.
``(E) The major rule effective delay period of 60
days shall apply to the Final Rule described in
subparagraph (C), such that the Final Rule described in
subparagraph (C) is effective 210 days after the date
of enactment of this Act.
``SEC. 360GGG-2. CANNABIS-INFUSED FOODS, BEVERAGES, AND SUPPLEMENTS.
``(a) No Supplement/Additive Preclusion.--Notwithstanding any other
law, section 201(s)(6) of the Federal Food, Drug, and Cosmetic Act
shall not apply to `marihuana', as defined in section 102(16) of the
Controlled Substances Act, nor to `industrial hemp', as defined in
section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C.
1639o). Notwithstanding any other Federal law or provision of the
Federal Food, Drug, and Cosmetic Act, the Food and Drug Administration
shall treat cannabis without respect to the doctrine of dietary
supplement and food additive preclusion.
``(b) Cannabis-Infused Dietary Supplements; Classification as Old
Dietary Ingredient.--Notwithstanding any other law, `marihuana', as
defined in section 102(16) of the Controlled Substances Act, and
`industrial hemp', as defined in section 297A of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1639o), shall be deemed to have been
marketed in the United States as a dietary ingredient before October
15, 1994 for the purposes of subsections (a) and (d) of section 413 of
the Federal Food, Drug, and Cosmetic Act.
``(1) Within 30 days of the passage of this Act, the Food
and Drug Administration shall promulgate an interim final rule
and undertake rulemaking under the Administrative Procedure Act
(5 U.S.C. 500 et seq.) for the purposes of establishing a
standard serving size and further clarifying intended
conditions of use of whole-plant cannabis extracts and
individual cannabinoid extracts used as dietary supplements.
``(2) Such final rule shall be promulgated within 90 days
of the publication of the interim final rule.
``(c) Cannabis-Infused Foods and Beverages; Classification as
Generally Safe Through Common Experience.--Notwithstanding any other
law, `marihuana', as defined in section 102(16) of the Controlled
Substances Act, or `industrial hemp', as defined in section 297A of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1639o), shall be deemed to
be generally recognized as safe through experience based on common use
in food prior to January 1, 1958, for the purposes of section 201(s) of
the Federal Food, Drug, and Cosmetic Act and 21 CFR 170.30(a).
Cannabis-infused foods and beverages, unless a designated State medical
cannabis product, shall be considered as regulated under title III of
the Federal Alcohol Administration Act (27 U.S.C. 201 et seq.).
``(1) Within 30 days of the passage of this Act, the Food
and Drug Administration shall promulgate an interim final rule
and undertake rulemaking under the Administrative Procedure Act
(5 U.S.C. 500 et seq.) for the purposes of establishing a
standard serving size and further clarifying conditions of
intended use of whole-plant cannabis extracts and individual
cannabinoid extracts used as food additives.
``(2) Such final rule shall be promulgated within 90 days
of the publication of the interim final rule.
``SEC. 360GGG-3. CANNABIS COSMETICS.
``(a) Cannabis Allowed in Cosmetics, `Safe'.--The use of
`marihuana', as defined in section 201(s)(6) of the Federal Food, Drug,
and Cosmetic Act, and `industrial hemp', as defined in section 297A of
the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o), alone in
cosmetic products shall not cause a cosmetic to be adulterated within
the meaning of subsections (a) through (e) of section 601 of the
Federal Food, Drug, and Cosmetic Act provided that it is properly
labeled and branded within the meaning of chapter 6 of title 21, United
States Code, generally.
``(1) Within 30 days of the passage of this Act, the Food
and Drug Administration shall promulgate an interim final rule
and undertake rulemaking under the Administrative Procedure Act
(5 U.S.C. 500 et seq.) to effectuate this provision.
``(2) Such final rule shall be promulgated within 90 days
of the publication of the interim final rule.
``(b) Rule of Construction.--Notwithstanding section 360ggg-3(a) of
this title, any cosmetic containing `marihuana', as defined in section
102(16) of the Controlled Substances Act, and `industrial hemp', as
defined in section 297A of the Agricultural Marketing Act of 1946 (7
U.S.C. 1639o), including any extract thereof, where the cannabis
component actually renders it a poisonous or deleterious substance,
injurious to users under the conditions of use prescribed in the
labeling thereof, or under such conditions of use as are customary or
usual, may be considered adulterated within the meaning of section 601
of the Federal Food, Drug, and Cosmetic Act and/or misbranded under
section 106(4) of the Federal Food, Drug, and Cosmetic Act.
``SEC. 360GGG-4. LIABILITY AND METHOD OF PAYMENT.
``A designated State medical cannabis product, alone or in
combination with another designated State medical cannabis product or
products (as medically appropriate) deemed under section 360ggg-1 of
this title to have in effect an approved application shall not be
assessed fees under section 379h(a) or 379j-12(a) of this title on the
basis of such deemed approval.
``SEC. 360GGG-5. PRIVATE RIGHT OF ACTION AND ADMINISTRATIVE REMEDY.
``(a) Right of Action.--An adversely affected person or business
shall have private right of action under the Administrative Procedure
Act (5 U.S.C. 500 et seq.) and the Mandamus Act (28 U.S.C. 1361) to
compel the Administrator or any other officer, employee or agent of the
Food and Drug Administration to promulgate regulations or undertake and
finalize rulemaking required under this Act that are not promulgated or
published within the time frames set forth herein, or to provide the
certification of designated State medical cannabis products within the
time frames set forth herein, or to enjoin agency action. The exclusive
venue for bringing any such action shall be the District Court for the
District of Columbia. Upon demonstration of undue delay or failure to
adhere strictly to statutory deadlines, or other violations of law and
equity, equitable relief in the form of a writ of mandamus compelling
action shall issue, among such other relief as the court may see
fit.''.
SEC. 302. CERTAIN DEPARTMENT OF HEALTH AND HUMAN SERVICES AND FOOD AND
DRUG ADMINISTRATION REPORTING REQUIREMENTS.
(a) In General.--Not later than one calendar year after the date of
the enactment of this Act, and annually thereafter for the following
five calendar years, the Secretary of Health and Human Services shall
submit to the appropriate congressional committees, reports on the
following:
(1) Section 301 designated state medical cannabis products
report.--A report detailing--
(A) administrative actions taken pursuant to
section 301 of this Act (and the amendments made by
such section) to ensure certification of designated
State medical cannabis products, including timelines
and reasons for any delays past statutory deadlines;
(B) the number, nature, and kind of designated
State medical cannabis products granted or denied
certification in the previous year;
(C) any variances or lingering potential conflicts
with State laws regarding medical cannabis products and
section 301 of this Act (and the amendments made by
such section), and any plans for resolving these
variances; and
(D) the impact of section 301 of this Act (and the
amendments made by such section) with respect to
patient access to designated State medical cannabis
products.
(2) Cannabidiol (cbd) and other hemp-derived cannabinoids
market and safety report.--A report detailing--
(A) what the current market for cannabidiol
(hereainfter referred to as ``CBD'') and other hemp-
derived cannabinoid products looks like, including the
types and forms of products available, manufacturing
practices within the industry, market supply chain, how
products are marketed and sold, the types of
cannabinoids used in products, the marketed effects of
CBD and other hemp-derived cannabinoid products, and
the range of CBD and other hemp derived cannabinoid
doses currently found in the market;
(B) what State-based regulations have been created
to CBD and other hemp derived cannabinoids and what is
their interaction with Agricultural Marketing Act of
1946 in general, including Public Law 115-334, the
Agriculture Improvement Act of 2018 (``the 2018 Farm
Bill'');
(C) how the lack of national standards for CBD and
other hemp derived cannabinoid products affects the
market; and
(D) what is currently known about the safety and
risk-benefit profile of CBD and other hemp derived
cannabinoids, including what safety and toxicity data
are available to support this knowledge and any
relevant information about safety with regard to
specific populations, such as children and pregnant
individuals
(3) Medical marijuana and cannabidiol research expansion
act report.--A report detailing--
(A) the number and type of appropriately registered
individuals and entities under the Act, including the
number of applications for registration received, the
number of applications for registration approved, the
number of applications for registration denied;
(B) the impact of any rescheduling on cannabis or
cannabis-derived substances to Schedules III-V or full
decontrol, on further drug research, including new use
and new safety research;
(C) the number and type of any new drugs developed
and approved pursuant to section 201 of Public Law 117-
215, the Medical Marijuana and Cannabidiol Research
Expansion Act; and
(D) the number and type of commercial drug
manufacturer registrants approved and denied pursuant
to section 202 of Public Law 117-215, the Medical
Marijuana and Cannabidiol Research Expansion Act.
(4) Federal food, drug, and cosmetic act part j
implementation report.--A report detailing--
(A) administrative actions taken to implement part
J of the Federal Food, Drug, and Cosmetic Act, as added
by section 301 of this Act, including and with specific
reference to actions taken to implement non-designated
State medical cannabis product provisions, such as new
drug, dietary supplement, cosmetic, and food use
provisions; and
(B) administrative actions taken to implement part
J of the Federal Food, Drug, and Cosmetic Act, as added
by section 301 of this Act, including and with specific
reference to actions taken to implement designated
State medical cannabis product provisions.
(b) Definitions.--In this section--
(1) the term ``appropriate congressional committees'' means
the Committee on Energy and Commerce of the House of
Representatives and the Committee on Committee on Health
Education, Labor, and Pensions of the United States Senate; and
(2) the term ``hemp'' has the meaning given the term in
section 297A of the Agricultural Marketing Act of 1946.
TITLE IV--SMALL BUSINESS ADMINISTRATION PROVISIONS
SEC. 401. FAIR SMALL BUSINESS ADMINISTRATION ACCESS.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is
amended by adding at the end the following new paragraph:
``(36) Loans to cannabis-related legitimate businesses and
service providers.--
``(A) In general.--The Administrator may not
decline to provide a guarantee for a loan under this
subsection to an otherwise eligible small business
concern solely because such concern is a cannabis-
related legitimate business or service provider.
``(B) Definitions.--In this paragraph:
``(i) Cannabis.--The term `cannabis' has
the meaning given the term `marihuana' in
section 102 of the Controlled Substances Act.
``(ii) Cannabis product.--The term
`cannabis product' means any article that
contains cannabis, including an article that is
a designated State medical cannabis product
within the meaning of part J of subchapter V of
chapter 9 of the Federal Food, Drug, and
Cosmetic Act.
``(iii) Cannabis-related legitimate
business.--The term `cannabis-related
legitimate business' means a cannabis farmer,
cannabis producer, or any person or company
that is a small business concern and that--
``(I) engages in any activity
described in subclause (II) pursuant to
a law established by a State or a
political subdivision of a State, as
determined by such State or political
subdivision; and
``(II) participates in any business
or organized activity that involves
handling cannabis or cannabis products,
including cultivating, producing,
manufacturing, selling, transporting,
displaying, dispensing, retailing,
wholesaling, distributing, or
purchasing cannabis or cannabis
products.
``(iv) Cannabis producer.--The term
`cannabis producer' means a person who
manufactures, compounds, converts, processes,
prepares, or packages cannabis or cannabis
products.
``(v) Cannabis farmer.--The term `cannabis
farmer' means a person who plants, cultivates,
harvests, or in any way facilitates the natural
growth of cannabis.
``(vi) Service provider.--The term `service
provider'--
``(I) means a business,
organization, or other person that--
``(aa) sells goods or
services to a cannabis-related
legitimate business; or
``(bb) provides any
business services, including
the sale or lease of real or
any other property, legal or
other licensed services, or any
other ancillary service,
relating to cannabis; and
``(II) does not include a business,
organization, or other person that
participates in any business or
organized activity that involves
handling cannabis or cannabis products,
including cultivating, producing,
manufacturing, selling, transporting,
displaying, dispensing, retailing,
wholesaling, distributing, or
purchasing cannabis or cannabis
products.
``(vii) State.--The term `State' means each
of the several States, the District of
Columbia, Puerto Rico, and any territory or
possession of the United States.''.
SEC. 402. DISASTER LOAN NONDISCRIMINATION.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting after paragraph (15) the following new paragraph:
``(16) Assistance to cannabis-related legitimate businesses
and service providers.--The Administrator may not decline to
provide assistance under this subsection to an otherwise
eligible borrower solely because such borrower is a cannabis-
related legitimate business or service provider (as defined in
subsection (a)(36)).''.
SEC. 403. MICROLOAN NONDISCRIMINATION.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)(13)) is
amended by adding at the end the following new paragraph:
``(14) Assistance to cannabis-related legitimate businesses
and service providers.--An eligible intermediary may not
decline to provide assistance under this subsection to an
otherwise eligible borrower solely because such borrower is a
cannabis-related legitimate business or service provider (as
defined in subsection (a)(36)).''.
SEC. 404. SMALL BUSINESS INVESTMENT COMPANY DEBENTURE
NONDISCRIMINATION.
Part A of title III of the Small Business Investment Act of 1958
(15 U.S.C. 695 et seq.) is amended by adding at the end the following
new section:
``SEC. 321. DEBENTURES TO FINANCE CANNABIS-RELATED BUSINESSES AND
SERVICE PROVIDERS.
``The Administrator may not decline to purchase or guarantee a
debenture made under this title to an otherwise eligible small business
investment company solely because such small business investment
company provides financing to an entity that is a cannabis-related
legitimate business or service provider (as defined in section 7(a)(38)
of the Small Business Act).''.
SEC. 405. STATE OR LOCAL DEVELOPMENT LOAN NON-DISCRIMINATION.
Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695
et seq.) is amended by adding at the end the following new section:
``SEC. 511. LOANS TO CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE
PROVIDERS.
``The Administrator may not decline to provide a guarantee for a
loan under this title to an otherwise eligible State or local
development company solely because such State or local development
company provides financing to an entity that is a cannabis-related
legitimate business or service provider (as defined in section 7(a)(36)
of the Small Business Act).''.
SEC. 406. RULEMAKING AND DISBURSEMENT.
Not later than 30 days after the date of the enactment of this Act,
the Administrator of the Small Business Administration shall issue or
amend any rules or interim final rules, standard operating procedures,
other legal or policy guidance necessary to carry out the requirements
of this Act and the amendments made by this Act. The Administrator
shall begin incurring obligations and disbursing funds made available
to the Administration for the purposes of carrying out this Act within
45 days of the enactment of this Act.
SEC. 407. ADMINISTRATIVE PROCEDURE ACT AND MANDAMUS REMEDIES.
Should the Administrator fail to issue or amend any rules or
interim final rules, standard operating procedures, other legal or
policy guidance necessary to carry out the requirements of this Act and
the amendments made by this Act within the 30 days described above, or
fail to make an application decision within 30 days of submission of a
completed application, an applicant shall have the right to compel
action under the Administrative Procedure Act (5 U.S.C. 500 et seq.)
and the Mandamus Act (28 U.S.C. 1361), in any United States district
court where the applicant resides or does business or in the United
States District Court for the District of Columbia. Should the
applicant substantially prevail, such applicant shall be entitled to
attorneys' fees and costs associated with compelling a decision under
this section. Such mandamus remedy shall issue upon demonstration of
failure to meet deadlines described herein.
TITLE V--IMPOSITION OF CANNABIS EXCISE TAX
SEC. 501. LAW ENFORCEMENT RETRAINING AND SUCCESSFUL SECOND CHANCES
FUND.
(a) Creation of Law Enforcement Retraining and Successful Second
Chances Fund.--There is established in the Treasury of the United
States a fund to be known as the ``Law Enforcement Retraining and
Successful Second Chances Fund'' (referred to in this section as the
``Law Enforcement and Second Chances Fund''), consisting of such
amounts as may be appropriated or credited to such a fund as provided
in this section or section 9602(b) of the Internal Revenue Code.
(b) Authorization of Appropriations.--To carry out this section,
there are authorized to be appropriated to the Law Enforcement and
Second Chances Fund such sums as may be necessary to carry out the
purposes of this subchapter for fiscal year 2024, to remain available
until expended.
(c) Future Fiscal Years.--For the 10 fiscal years following fiscal
year 2024, there is authorized to be appropriated to the Law
Enforcement and Second Chances Fund such sums as may be necessary to
carry out the purposes of this subchapter.
(d) Availability of Law Enforcement and Second Chances Fund.--
Amounts in the Law Enforcement and Second Chances Fund shall be
available, until expended, as provided under this section.
(e) Set-Asides.--
(1) Crisis stabilization and community reentry grant
program.--Of the amounts in the Law Enforcement and Second
Chances Fund--
(A) 10 percent shall be set aside for grants made
under section 3052(a) of part OO of the Omnibus Crime
Control and Safe Streets Act of 1968; and
(B) 10 percent shall be set aside for grants made
under section 3052(b) of part OO of the Omnibus Crime
Control and Safe Streets Act of 1968.
(2) Edward byrne memorial justice assistance grant
program.--Of the amounts in the Law Enforcement and Second
Chances Fund, 10 percent shall be set aside for grants made
under part A of title 34, United States Code.
(3) Community-oriented policing services hiring program.--
Of the amounts in the Law Enforcement and Second Chances Fund,
10 percent shall be set aside for activities authorized by the
Violent Crime Control and Law Enforcement Act of 1994 (Public
Law 103-322); the Omnibus Crime Control and Safe Streets Act of
1968 (``the 1968 Act''); and the Violence Against Women and
Department of Justice Reauthorization Act of 2005 (Public Law
109-162) (``the 2005 Act''). No less than 5 percent of this
set-aside shall be directed towards grants made under section
1701 of title I of the 1968 Act (42 U.S.C. 3796dd) for the
hiring and rehiring of additional career law enforcement
officers under part Q of such title notwithstanding subsection
(i) of such section.
(4) Successful second chances program.--Of the amounts in
the Law Enforcement and Second Chances Fund, 30 percent shall
be set aside for the Small Business Administrator to carry out
the provisions of title IV of the States Reform Act.
(5) Veterans mental health funding.--Of the amounts in the
Law Enforcement and Second Chances Fund, 10 percent shall be
set aside for the Secretary of the Veterans Affairs to carry
out the provisions of section 1720I(a) and 1720I(c) of title
38, United States Code.
(6) State response to opioid addiction funding.--Of the
amounts in the Law Enforcement and Second Chances Fund, 5
percent shall be set aside for the Secretary of Health and
Human Services to carry out the provisions of section 290ee-3
of title 42, United States Code.
(7) Underage youth use prevention funding.--Of the amounts
in the Law Enforcement and Second Chances Fund, 5 percent shall
be set aside for the Assistant Secretary for Mental Health and
Substance Use of the Substance Abuse and Mental Health Services
Administration to help prevent underage cannabis use in
carrying out the provisions of title 42, United States Code.
(8) Rapid response to novel cartel growth.--Of the amounts
in the Law Enforcement and Second Chances Fund, 5 percent shall
be set aside for the Attorney General to carry out the
provisions of section 873(a)(5)-(6) of title 21, United States
Code.
(f) Allotment.--All funds for carrying out the provisions of this
chapter shall be available for allotment to bureaus and offices of the
Department of Justice and the Small Business Administration, and for
transfer to such other agencies of the Federal Government, and to such
State agencies, as the Secretary of the Treasury may request to
cooperate or assist in carrying out the provisions of this chapter.
SEC. 502. CANNABIS REVENUE AND REGULATION ACT.
Subtitle E of title I of the Internal Revenue Code of 1986 is
amended by adding at the end the following new chapter:
``CHAPTER 56--CANNABIS PRODUCTS
``subchapter a--imposition of tax
``Sec. 5901. Imposition of tax.
``Sec. 5902. Definitions.
``Sec. 5903. Liability and method of payment.
``Sec. 5904. Exemption from tax.
``Sec. 5905. Credit, refund, or drawback of tax.
``subchapter b--operations
``Sec. 5911. Inventories, reports, and records.
``Sec. 5912. Packaging and labeling.
``Sec. 5913. Purchase, receipt, possession, or sale of cannabis
products after removal.
``Sec. 5914. Restrictions relating to marks, labels, notices, and
packages.
``Sec. 5915. Restriction on importation of previously exported cannabis
products.
``subchapter c--penalties
``Sec. 5921. Civil penalties.
``Subchapter A--Imposition of Tax
``SEC. 5901. IMPOSITION OF TAX.
``(a) Imposition of Excise Tax.--There is hereby imposed on any
cannabis product produced in or imported into the United States a tax
equal to 3 percent of the removal price of such a cannabis product sold
in the United States during the 12-month period ending 1 calendar
quarter before such calendar year.
``(b) Moratorium on Cannabis Product Excise Tax Increases.--There
is hereby imposed, notwithstanding any other law, including, but not
limited to the Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344, 88 Stat. 297, 2 U.S.C. 601-688), for the 10
calendar years following the passage of this Act, a moratorium on
increasing the excise tax imposed on cannabis products by this section
5901. Such moratorium may be waived before the 10 year timeframe by a
three-quarters vote to do so by both Houses of Congress.
``(c) Removal Price Categories.--
``(1) In general.--For the purposes of subsection (a), the
Secretary shall impose the tax on the removal price--
``(A) per 454 grams of cannabis flower,
``(B) per 100 grams of cannabis pre-rolls,
``(C) per 20 grams of cannabis extracts,
``(D) per 10 grams of cannabis vaporizer
cartridges,
``(E) of 20 units of edible cannabis product, and
``(F) of 20 units of cannabis topical or cosmetic
product.
``(2) New removal price categories and basis.--For the
purposes of subsection (c), the Secretary may, under the
processes of the Administrative Procedure Act (5 U.S.C. 500 et
seq.), undertake formal rulemaking to establish new removal
price categories and bases for cannabis products that are not
covered under subsection (c)(1).
``(3) Clarifying rulemaking.--The Secretary may, consistent
with the Administrative Procedure Act (5 U.S.C. 500 et seq.),
further clarify the application of subsection (c)(1).
``(d) Time of Attachment on Cannabis Products.--The tax under this
section shall attach to any cannabis product as soon as such product is
in existence as such, whether it be subsequently separated or
transferred into any other substance, either in the process of original
production or by any subsequent process. Raw cannabis not yet delivered
to a producer for processing, manufacturing, or production shall not be
considered a product in existence for the purposes of this subsection
(d).
``SEC. 5902. DEFINITIONS.
``(a) Definitions Related to Cannabis Products.--For purposes of
this chapter:
``(1) Cannabis product.--
``(A) In general.--Except as provided in
subparagraph (B), the term `cannabis product' means any
article that contains or consists of cannabis.
``(B) Exceptions.--The term `cannabis product' does
not include an FDA-approved article, industrial hemp,
or the unproduced, raw agricultural commodity of
cannabis.
``(2) FDA-approved article.--The term `FDA-approved
article' means any article if the producer or importer thereof
demonstrates to the satisfaction of the Secretary of Health and
Human Services that such article is--
``(A) a drug--
``(i) that is approved under section 505 of
the Federal Food, Drug, and Cosmetic Act or
licensed under section 351 of the Public Health
Service Act, or
``(ii) for which an investigational use
exemption has been authorized under section
505(i) of the Federal Food, Drug, and Cosmetic
Act or under section 351(a) of the Public
Health Service Act,
``(B) a combination product (as described in
section 503(g) of the Federal Food, Drug, and Cosmetic
Act), the constituent parts of which were approved or
cleared under section 505, 510(k), or 515 of such Act,
or
``(C) a `designated State medical cannabis product'
within the meaning of part J of subchapter V of chapter
9 of title 21, United States Code (the Federal Food,
Drug, and Cosmetic Act).
``(3) Cannabis.--The term `cannabis' has the same meaning
given to the term `marihuana' under section 102(16) of the
Controlled Substances Act (21 U.S.C. 802(16)).
``(4) Industrial hemp.--The term `industrial hemp' has the
same meaning given to the term `industrial hemp' in section
297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1621
et seq.) (codified at 7 U.S.C. 5940(b)(2)).
``(b) Definitions Related to Cannabis Businesses and Producers.--
For purposes of this chapter:
``(1) Cannabis business.--The term `cannabis business'
means a producer, importer, or export warehouse proprietor.
``(2) Producer.--
``(A) In general.--The term `producer' means any
person who manufactures, produces, compounds, converts,
processes, prepares, or packages any cannabis product.
``(B) Personal use exception.--Subject to
regulation prescribed by the Secretary, the term
`producer' shall not include any individual otherwise
described in subparagraph (A) if the only cannabis
product described in such subparagraph with respect to
such individual is for personal or family use and not
for sale.
``(C) Cannabis farmers not producers.--A producer
does not mean a person who plants, cultivates,
harvests, grows the raw agricultural commodity of
cannabis not yet finished into a produced article for
consumption. This provision shall not be constructed as
precluding a cannabis farmer from also being a cannabis
producer within the same enterprise.
``(3) Importer.--The term `importer' means any person who--
``(A) is in the United States and to whom non-tax-
paid cannabis products, produced in a foreign country
or a possession of the United States, are shipped or
consigned,
``(B) removes cannabis products for sale or
consumption in the United States from a customs
warehouse, or
``(C) smuggles or otherwise unlawfully brings any
cannabis product into the United States.
``(4) Export warehouse proprietor.--
``(A) In general.--The term `export warehouse
proprietor' means any person who operates an export
warehouse.
``(B) Export warehouse.--The term `export
warehouse' means an internal revenue warehouse for the
storage of cannabis products, upon which the internal
revenue tax has not been paid--
``(i) for subsequent shipment to a foreign
country or a possession of the United States,
or
``(ii) for consumption beyond the
jurisdiction of the internal revenue laws of
the United States.
``(5) Cannabis production facility.--The term `cannabis
production facility' means an establishment that is qualified
under subchapter C to perform any operation for which such
qualification is required under such subchapter.
``(c) Other Definitions.--For purposes of this chapter--
``(1) Produce.--The term `produce' includes any activity
described in subsection (b)(2)(A).
``(2) Removal; remove.--The terms `removal' or `remove'
mean--
``(A) the transfer of cannabis products from the
premises of a producer (or the transfer of such
products from the premises of a producer to the
premises of such producer),
``(B) release of such products from customs
custody, or
``(C) smuggling or other unlawful importation of
such products into the United States.
``(3) Removal price.--The term `removal price' means--
``(A) except as otherwise provided in this
paragraph, the price for which the cannabis product is
sold in the sale that occurs in connection with the
removal of such product,
``(B) in the case of any such sale that is
described in section 5903(c), the price determined
under such section, and
``(C) if there is no sale that occurs in connection
with such removal, the price that would be determined
under section 5903(c) if such product were sold at a
price that cannot be determined.
``SEC. 5903. LIABILITY AND METHOD OF PAYMENT.
``(a) Liability for Tax.--
``(1) Original liability.--The producer or importer of any
cannabis product shall be liable for the taxes imposed thereon
by section 5901.
``(2) Transfer of liability.--
``(A) In general.--When cannabis products are
transferred, without payment of tax, pursuant to
subsection (b) or (c) of section 5904--
``(i) except as provided in clause (ii),
the transferee shall become liable for the tax
upon receipt by the transferee of such
articles, and the transferor shall there-upon
be relieved of their liability for such tax,
and
``(ii) in the case of cannabis products
that are released from customs custody for
transfer to the premises of a producer, the
transferee shall become liable for the tax on
such articles upon release from customs
custody, and the importer shall thereupon be
relieved of their liability for such tax.
``(B) Return.--All provisions of this chapter
applicable to cannabis products shall be applicable to
such articles returned upon withdrawal from the market
or returned after previous removal for a tax-exempt
purpose.
``(b) Method of Payment of Tax.--
``(1) In general.--
``(A) Taxes paid on basis of return.--The taxes
imposed by section 5901 shall be paid on the basis of
return. The Secretary shall, by regulations, prescribe
the period or the event to be covered by such return
and the information to be furnished on such return.
``(B) Application to transferees.--In the case of
any transfer to which subsection (a)(2)(A) applies, the
tax under section 5901 on the transferee shall (if not
otherwise relieved by reason of a subsequent transfer
to which such subsection applies) be imposed with
respect to the removal of the cannabis product from the
premises of the transferee.
``(C) Postponement.--Any postponement under this
subsection of the payment of taxes determined at the
time of removal shall be conditioned upon compliance
with such requirements, as the Secretary may prescribe
for the protection of the revenue. The Secretary may,
by regulations, require payment of tax on the basis of
a return prior to removal of the cannabis products
where a person defaults in the postponed payment of tax
on the basis of a return under this subsection or
regulations prescribed thereunder.
``(D) Administration and penalties.--All
administrative and penalty provisions of this title, as
applicable, shall apply to any tax imposed by section
5901.
``(2) Time for payment of taxes.--
``(A) In general.--Except as otherwise provided in
this paragraph, in the case of taxes on cannabis
products removed during any semimonthly period for
deferred payment of tax, the last day for payment of
such taxes shall be the 14th day after the last day of
such semimonthly period.
``(B) Imported articles.--In the case of cannabis
products that are imported into the United States, the
following provisions shall apply:
``(i) In general.--The last day for payment
of tax shall be the 14th day after the last day
of the semimonthly period during which the
article is entered into the customs territory
of the United States.
``(ii) Special rule for entry of
warehousing.--Except as provided in clause
(iv), in the case of an entry for warehousing,
the last day for payment of tax shall not be
later than the 14th day after the last day of
the semimonthly period during which the article
is removed from the first such warehouse.
``(iii) Foreign trade zones.--Except as
provided in clause (iv) and in regulations
prescribed by the Secretary, articles brought
into a foreign trade zone shall,
notwithstanding any other provision of law, be
treated for purposes of this subsection as if
such zone were a single customs warehouse.
``(iv) Exception for articles destined for
export.--Clauses (ii) and (iii) shall not apply
to any article that is shown to the
satisfaction of the Secretary to be destined
for export.
``(C) Cannabis products brought into the united
states from puerto rico.--In the case of cannabis
products that are brought into the United States from
Puerto Rico and subject to tax under section 7652, the
last day for payment of tax shall be the 14th day after
the last day of the semimonthly period during which the
article is brought into the United States.
``(D) Special rule where due date falls on
saturday, sunday, or holiday.--Notwithstanding section
7503, if, but for this subparagraph, the due date under
this paragraph would fall on a Saturday, Sunday, or a
legal holiday (as defined in section 7503), such due
date shall be the immediately preceding day that is not
a Saturday, Sunday, or such a holiday.
``(E) Special rule for unlawfully produced cannabis
products.--In the case of any cannabis products
produced in the United States at any place other than
the premises of a producer that has obtained the permit
required under this chapter, tax shall be due and
payable immediately upon production.
``(3) Payment by electronic fund transfer.--Any person who
in any 12-month period, ending December 31, was liable for a
gross amount equal to or exceeding $1,000,000 in taxes imposed
on cannabis products by section 5901 (or section 7652) shall
pay such taxes during the succeeding calendar year by
electronic fund transfer (as defined in section 5061(e)(2)) to
a Federal Reserve Bank. Rules similar to the rules of section
5061(e)(3) shall apply to the $1,000,000 amount specified in
the preceding sentence.
``(c) Definition of Price.--
``(1) Constructive sale price.--
``(A) In general.--If an article is sold directly
to consumers, sold on consignment, or sold (otherwise
than through an arm's length transaction) at less than
the fair market price, or if the price for which the
article sold cannot be determined, the tax under
section 5901(a) shall be computed on the price for
which such articles are sold, in the ordinary course of
trade, by producers thereof, as determined by the
Secretary.
``(B) Arm's length.--
``(i) In general.--For purposes of this
section, a sale is considered to be made under
circumstances otherwise than at arm's length
if--
``(I) the parties are members of
the same controlled group, whether or
not such control is actually exercised
to influence the sale price,
``(II) the parties are members of a
family, as defined in section
267(c)(4), or
``(III) the sale is made pursuant
to special arrangements between a
producer and a purchaser.
``(ii) Controlled groups.--
``(I) In general.--The term
`controlled group' has the meaning
given to such term by subsection (a) of
section 1563, except that `more than 50
percent' shall be substituted for `at
least 80 percent' each place it appears
in such subsection.
``(II) Controlled groups that
include nonincorporated persons.--Under
regulations prescribed by the
Secretary, principles similar to the
principles of subclause (I) shall apply
to a group of persons under common
control where one or more of such
persons is not a corporation.
``(2) Containers, packing and transportation charges.--In
determining, for the purposes of this chapter, the price for
which an article is sold, there shall not be included any
charge for coverings and containers of whatever nature, and any
charge incident to placing the article in condition packed
ready for shipment. Further, there shall be excluded the amount
of tax imposed by this chapter, whether or not stated as a
separate charge. A transportation, delivery, insurance,
installation, or other charge (not required by the preceding
sentence to be included) shall likewise be excluded from the
price.
``(d) Partial Payments and Installment Accounts.--
``(1) Partial payments.--There shall be paid upon each
payment with respect to the article a percentage of such
payment equal to the rate of tax in effect on the date such
payment is due in the case of--
``(A) a contract for the sale of an article wherein
it is provided that the price shall be paid by
installments and title to the article sold does not
pass until a future date notwithstanding partial
payment by installments,
``(B) a conditional sale, or
``(C) a chattel mortgage arrangement wherein it is
provided that the sales price shall be paid in
installments.
``(2) Sales of installment accounts.--If installment
accounts, with respect to payments on which tax is being
computed as provided in paragraph (1), are sold or otherwise
disposed of, then paragraph (1) shall not apply with respect to
any subsequent payments on such accounts (other than subsequent
payments on returned accounts with respect to which credit or
refund is allowable by reason of section 6416(b)(5)), but
instead--
``(A) there shall be paid an amount equal to the
difference between--
``(i) the tax previously paid on the
payments on such installment accounts, and
``(ii) the total tax that would be payable
if such installment accounts had not been sold
or otherwise disposed of (computed as provided
in paragraph (1)), except that
``(B) if any such sale is pursuant to the order of,
or subject to the approval of, a court of competent
jurisdiction in a bankruptcy or insolvency proceeding,
the amount computed under subparagraph (A) shall not
exceed the sum of the amounts computed by multiplying--
``(i) the proportionate share of the amount
for which such accounts are sold that is
allocable to each unpaid installment payment,
by
``(ii) the rate of tax under this chapter
in effect on the date such unpaid installment
payment is or was due.
``(3) Limitation.--The sum of the amounts payable under
this subsection in respect of the sale of any article shall not
exceed the total tax.
``SEC. 5904. EXEMPTION FROM TAX.
``(a) Exemption From Tax.--Cannabis products on which the internal
revenue tax has not been paid or determined may, subject to such
regulations as the Secretary shall prescribe, be withdrawn from the
premises of any producer in approved containers free of tax and not for
resale for use--
``(1) exclusively in scientific research by a laboratory,
``(2) by a proprietor of a cannabis production facility in
research, development, or testing (other than consumer testing
or other market analysis) of processes, systems, materials, or
equipment, relating to cannabis or cannabis operations, under
such limitations and conditions as to quantities, use, and
accountability as the Secretary may by regulations require for
the protection of the revenue,
``(3) by the United States or any governmental agency
thereof, any State, any political subdivision of a State, or
the District of Columbia, for nonconsumption purposes, or
``(4) by a qualified State medical cannabis patient or
patients, when the cannabis product is 100 percent donated to
the patient or patients, and such a donated article otherwise
qualifies for use as a `designated State medical cannabis
product' within the meaning of section 360ggg of the Federal
Food, Drug, and Cosmetic Act Federal Food, Drug, and Cosmetic
Act.
``(b) Cannabis Products Transferred or Removed From Domestic
Factories and Export Warehouses.--
``(1) In general.--Subject to such regulations as the
Secretary shall prescribe, a producer or export warehouse
proprietor may transfer cannabis products, without payment of
tax, to the premises of another producer or export warehouse
proprietor, or remove such articles, without payment of tax,
for shipment to a foreign country, Puerto Rico, the Virgin
Islands, or a possession of the United States, or for
consumption beyond the jurisdiction of the internal revenue
laws of the United States.
``(2) Labeling.--Cannabis products may not be transferred
or removed under this subsection unless such products bear such
marks, labels, or notices as the Secretary shall by regulations
prescribe.
``(c) Cannabis Products Released From Customs Custody.--Cannabis
products imported or brought into the United States may be released
from customs custody, without payment of tax, for delivery to a
producer or export warehouse proprietor if such articles are not put up
in packages, in accordance with such regulations as the Secretary shall
prescribe.
``(d) Cannabis Products Exported and Returned.--Cannabis products
classifiable under item 9801.00.10 of the Harmonized Tariff Schedule of
the United States (relating to duty on certain articles previously
exported and returned), as in effect on the date of the enactment of
the States Reform Act, may be released from customs custody, without
payment of that part of the duty attributable to the internal revenue
tax for delivery to the original producer of such cannabis products or
to the export warehouse proprietor authorized by such producer to
receive such products, in accordance with such regulations as the
Secretary shall prescribe. Upon such release such products shall be
subject to this chapter as if they had not been exported or otherwise
removed.
``SEC. 5905. CREDIT, REFUND, OR DRAWBACK OF TAX.
``(a) Credit or Refund.--
``(1) In general.--Credit or refund of any tax imposed by
this chapter or section 7652 shall be allowed or made (without
interest) to the producer, importer, or export warehouse
proprietor on proof satisfactory to the Secretary that the
claimant producer, importer, or export warehouse proprietor has
paid the tax on--
``(A) cannabis products withdrawn from the market
by the claimant, or
``(B) such products lost (otherwise than by theft)
or destroyed, by fire, casualty, or act of God, while
in the possession or ownership of the claimant.
``(2) Cannabis products lost or destroyed.--
``(A) Extent of loss allowance.--No tax shall be
collected in respect of cannabis products lost or
destroyed, except that such tax shall be collected--
``(i) in the case of loss by theft, unless
the Secretary finds that the theft occurred
without connivance, collusion, fraud, or
negligence on the part of the proprietor of
cannabis production facility, or owner,
consignor, consignee, bailee, or carrier, or
their employees or agents,
``(ii) in the case of voluntary
destruction, unless such destruction is carried
out as provided in paragraph (3), and
``(iii) in the case of an unexplained
shortage of cannabis products.
``(B) Proof of loss.--In any case in which cannabis
products are lost or destroyed, whether by theft or
otherwise, the Secretary may require the proprietor of
a cannabis production facility or other person liable
for the tax to file a claim for relief from the tax and
submit proof as to the cause of such loss. In every
case where it appears that the loss was by theft, the
burden shall be upon the proprietor of the cannabis
production facility or other person responsible for the
tax under section 5901 to establish to the satisfaction
of the Secretary that such loss did not occur as the
result of connivance, collusion, fraud, or negligence
on the part of the proprietor of the cannabis
production facility, or owner, consignor, consignee,
bailee, or carrier, or their employees or agents.
``(C) Refund of tax.--In any case where the tax
would not be collectible by virtue of subparagraph (A),
but such tax has been paid, the Secretary shall refund
such tax.
``(D) Limitations.--Except as provided in
subparagraph (E), no tax shall be abated, remitted,
credited, or refunded under this paragraph where the
loss occurred after the tax was determined. The
abatement, remission, credit, or refund of taxes
provided for by subparagraphs (A) and (C) in the case
of loss of cannabis products by theft shall only be
allowed to the extent that the claimant is not
indemnified against or recompensed in respect of the
tax for such loss.
``(E) Applicability.--The provisions of this
paragraph shall extend to and apply in respect of
cannabis products lost after the tax was determined and
before completion of the physical removal of the
cannabis products from the premises.
``(3) Voluntary destruction.--The proprietor of a cannabis
production facility or other persons liable for the tax imposed
by this chapter or by section 7652 with respect to any cannabis
product may voluntarily destroy such products, but only if such
destruction is under such supervision and under such
regulations as the Secretary may prescribe.
``(4) Limitation.--Any claim for credit or refund of tax
under this subsection shall be filed within 6 months after the
date of the withdrawal from the market, loss, or destruction of
the products to which the claim relates, and shall be in such
form and contain such information as the Secretary shall by
regulations prescribe.
``(b) Drawback of Tax.--There shall be an allowance of drawback of
tax paid on cannabis products, when shipped from the United States, in
accordance with such regulations as the Secretary shall prescribe.
``Subchapter B--Operations
``SEC. 5911. INVENTORIES, REPORTS, AND RECORDS.
``(a) Requirements.--Every cannabis business shall maintain
inventories required by section 471 of title 26, Internal Revenue Code,
as the Secretary shall by formal rulemaking prescribe, with such
inventories to be subject to verification by any Internal Revenue
official during business hours, in such form, at such times, and for
such periods as the Secretary shall by formal rulemaking prescribe.
``(1) The formal rulemaking shall take into consideration
existing State reporting and inventory tracking mechanisms and
be compatible with existing State reporting and inventory
tracking mechanisms to the extent possible.
``(2) The formal rulemaking may allow for the creation of
Federal processes and systems to supplement, and that are
compatible with, existing State tracking and reporting
mechanisms.
``(3) Rulemaking with respect to this section 5911 shall
take place pursuant to the Administrative Procedure Act (5
U.S.C. 500 et seq.) and encompass Paperwork Reduction Act
considerations.
``(b) Report.--The Secretary shall provide an annual report on the
inventories, sales, and origin of reported cannabis products.
``SEC. 5912. PACKAGING AND LABELING.
``(a) Packages.--All cannabis products shall, before removal, be
put up in such packages as the Secretary shall by regulation prescribe.
``(b) Marks, Labels, and Notices.--Every package of cannabis
products shall, before removal, bear the marks, labels, and notices, if
any, that the Secretary by regulation prescribes, including, but not
limited to, the total amount of THC or tetrahydrocannabinol.
``(c) Lottery Features.--No certificate, coupon, or other device
purporting to be or to represent a ticket, chance, share, or an
interest in, or dependent on, the event of a lottery shall be contained
in, attached to, or stamped, marked, written, or printed on any package
of a cannabis product or cannabis products.
``(d) Exceptions.--Subject to regulations prescribed by the
Secretary, cannabis products may be exempted from subsections (a) and
(b) if such products are--
``(1) for experimental purposes, or
``(2) transferred to the premises of another producer or
export warehouse proprietor or released from customs custody
for delivery to a producer.
``SEC. 5913. PURCHASE, RECEIPT, POSSESSION, OR SALE OF CANNABIS
PRODUCTS AFTER REMOVAL.
``(a) Restriction.--No person shall--
``(1) with intent to defraud the United States, purchase,
receive, possess, offer for sale, or sell or otherwise dispose
of, after removal, any cannabis products--
``(A) upon which the tax has not been paid or
determined in the manner and at the time prescribed by
this chapter or regulations thereunder, or
``(B) that, after removal without payment of tax
pursuant to section 5904(a), have been diverted from
the applicable purpose or use specified in that
section,
``(2) with intent to defraud the United States, purchase,
receive, possess, offer for sale, or sell or otherwise dispose
of, after removal, any cannabis products that are not put up in
packages as required under section 5912 or that are put up in
packages not bearing the marks, labels, and notices, as
required under such section, or
``(3) otherwise than with intent to defraud the United
States, purchase, receive, possess, offer for sale, or sell or
otherwise dispose of, after removal, any cannabis products that
are not put up in packages as required under section 5912 or
that are put up in packages not bearing the marks, labels, and
notices, as required under such section.
``(b) Exception.--Paragraph (3) of subsection (a) shall not prevent
the sale or delivery of cannabis products directly to consumers from
proper packages, nor apply to such articles when so sold or delivered.
``(c) Liability to Tax.--Any person who possesses cannabis products
in violation of paragraph (1) or (2) of subsection (a) shall be liable
for a tax equal to the tax on such articles.
``SEC. 5914. RESTRICTIONS RELATING TO MARKS, LABELS, NOTICES, AND
PACKAGES.
``No person shall, with intent to defraud the United States,
destroy, obliterate, or detach any mark, label, or notice prescribed or
authorized, by this chapter or regulations thereunder, to appear on, or
be affixed to, any package of cannabis products before such package is
emptied.
``SEC. 5915. RESTRICTION ON IMPORTATION OF PREVIOUSLY EXPORTED CANNABIS
PRODUCTS.
``(a) Export Labeled Cannabis Products.--
``(1) In general.--Cannabis products produced in the United
States and labeled for exportation under this chapter--
``(A) may be transferred to or removed from the
premises of a producer or an export warehouse
proprietor only if such articles are being transferred
or removed without tax in accordance with section 5904,
``(B) may be imported or brought into the United
States, after their exportation, only if such articles
either are eligible to be released from customs custody
with the partial duty exemption provided in section
5904(d) or are returned to the original producer of
such article as provided in section 5904(c), and
``(C) may not be sold or held for sale for domestic
consumption in the United States unless such articles
are removed from their export packaging and repackaged
by the original producer into new packaging that does
not contain an export label.
``(2) Alterations by persons other than original
producer.--This section shall apply to articles labeled for
export even if the packaging or the appearance of such
packaging to the consumer of such articles has been modified or
altered by a person other than the original producer so as to
remove or conceal or attempt to remove or conceal (including by
the placement of a sticker over) any export label.
``(3) Exports include shipments to puerto rico.--For
purposes of this section, section 5904(d), section 5921, and
such other provisions as the Secretary may specify by
regulations, references to exportation shall be treated as
including a reference to shipment to the Commonwealth of Puerto
Rico.
``(b) Export Label.--For purposes of this section, an article is
labeled for export or contains an export label if it bears the mark,
label, or notice required under section 5904(b).
``Subchapter C--Penalties
``SEC. 5921. CIVIL PENALTIES.
``(a) Omitting Things Required or Doing Things Forbidden.--Whoever
willfully omits, neglects, or refuses to comply with any duty imposed
upon them by this chapter, or to do, or cause to be done, any of the
things required by this chapter, or does anything prohibited by this
chapter, shall in addition to any other penalty provided in this title,
be liable to a penalty of $10,000, to be recovered, with costs of suit,
in a civil action, except where a penalty under subsection (b) or (c)
or under section 6651 or 6653 or part II of subchapter A of chapter 68
may be collected from such person by assessment.
``(b) Failure To Pay Tax.--Whoever fails to pay any tax imposed by
this chapter at the time prescribed by law or regulations, shall, in
addition to any other penalty provided in this title, be liable to a
penalty of 10 percent of the tax due but unpaid.
``(c) Sale of Cannabis or Cannabis Products for Export.--Every
person who--
``(1) sells, relands, or receives within the jurisdiction
of the United States any cannabis products that have been
labeled or shipped for exportation under this chapter,
``(2) sells or receives such relanded cannabis products, or
``(3) aids or abets in such selling, relanding, or
receiving,
shall, in addition to the tax and any other penalty provided in this
title, be liable for a penalty equal to the greater of $10,000 or 10
times the amount of the tax imposed by this chapter. All cannabis
products relanded within the jurisdiction of the United States shall be
forfeited to the United States and destroyed. All vessels, vehicles,
and aircraft used in such relanding or in removing such cannabis
products from the place where relanded, shall be forfeited to the
United States.
``(d) Applicability of Section 6665.--The penalties imposed by
subsections (b) and (c) shall be assessed, collected, and paid in the
same manner as taxes, as provided in section 6665(a).
``(e) Cross References.--For penalty for failure to make deposits
or for overstatement of deposits, see section 6656.
``(f) Fraudulent Offenses.--Whoever, with intent to defraud the
United States--
``(1) engages in business as a cannabis business without
filing the application and obtaining the permit where required
by this chapter or regulations thereunder,
``(2) fails to keep or make any record, return, report, or
inventory, or keeps or makes any false or fraudulent record,
return, report, or inventory, required by this chapter or
regulations thereunder,
``(3) refuses to pay any tax imposed by this chapter, or
attempts in any manner to evade or defeat the tax or the
payment thereof,
``(4) sells or otherwise transfers, contrary to this
chapter or regulations thereunder, any cannabis products
subject to tax under this chapter, or
``(5) purchases, receives, or possesses, with intent to
redistribute or resell, any cannabis product--
``(A) upon which the tax has not been paid or
determined in the manner and at the time prescribed by
this chapter or regulations thereunder, or
``(B) that, without payment of tax pursuant to
section 5904, have been diverted from the applicable
purpose or use specified in that section, shall, for
each such offense, be fined not more than $10,000, or
imprisoned not more than 5 years, or both.
``(g) Liability to Tax.--Any person who possesses cannabis products
in violation of subsection (f) shall be liable for a tax equal to the
tax on such articles.''.
SEC. 503. REPORTS AND CONFORMING AMENDMENTS.
(a) Market Study.--Not later than 2 years after the date of the
enactment of this Act, and every 5 years thereafter, the Secretary of
the Treasury, or the Secretary's delegate, shall--
(1) conduct a study concerning the characteristics of the
cannabis industry, including the number of persons operating
cannabis businesses at each level of such industry, the volume
of sales, the amount of tax collected each year, and the areas
of evasion; and
(2) submit to Congress recommendations to improve the
regulation of the industry and the administration of the
related tax.
(b) Cross-Pollination Prevention Study.--Not later than 1 year
after the date of the enactment of this Act, the United States
Department of Agriculture shall conduct a study on the risk and actual
frequency of cross-pollination between hemp (as defined in section
297(A) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o)) and
raw cannabis (as defined in section 202(c) of this Act), and shall
publish its findings in a Report to the House Agricultural Committee
and the Senate Committee on Agriculture, Nutrition, and Forestry.
(c) Annual Reports Regarding Determination of Applicable Rates.--
Not later than 6 months before the beginning of each calendar year to
which section 5901(a)(2) of the Internal Revenue Code of 1986 (as added
by this section) applies, the Secretary of the Treasury, or the
Secretary's delegate, shall make publicly available a detailed
description of the methodology that the Secretary anticipates using to
determine the applicable excise tax rates that will apply for such
calendar year under section 5901(c)(2) of such Code.
(d) Conforming Amendments.--
(1) Section 6103(o)(1)(A) of the Internal Revenue Code of
1986 is amended by striking ``and firearms'' and inserting
``firearms, and cannabis products''.
(2) The table of chapters for subtitle E of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new chapter:
``Chapter 56. Cannabis Products''.
(e) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to sales, and applications for permits under section 5912
of the Internal Revenue Code of 1986 (as added by subsection
(a)), after 180 days after the date of the enactment of this
Act.
(2) Special rules for existing businesses.--In the case of
any producer operating under a permit issued on or before the
date of the enactment of this Act under State law, the
requirements under section 5912 of such Code (as so added)
shall apply beginning on the date that is 6 months after the
date of the enactment of this Act.
(3) Establishment of law enforcement retraining and
successful second chances fund.--The amendments made by
subsection (a) shall take effect on the date of enactment of
this Act.
TITLE VI--VETERANS' CARE AND ACCESS
SEC. 601. NONDISCRIMINATION IN FEDERAL HIRING FOR VETERAN MEDICAL
CANNABIS USERS.
(a) In General.--It shall be unlawful for a ``veteran'', as defined
in section 101(2) of title 38, United States Code, to be excluded from
employment in the Federal Government solely because the veteran
consumes or has consumed cannabis, as defined in section 102(16) of the
Controlled Substances Act (21 U.S.C. 802(16)). For the purposes
determining if a person is a veteran under this provision, an other
than honorable, bad conduct, or dishonorable release premised solely on
nonviolent cannabis charges covered under section 101 of the States
Reform Act shall be construed as a general discharge.
SEC. 602. AUTHORIZED PROVISION OF INFORMATION ON STATE-APPROVED
MARIJUANA PROGRAMS TO VETERANS.
(a) Authorized Provision of Information.--Notwithstanding the
provisions of the Controlled Substances Act (21 U.S.C. 801 et seq.) or
any other Federal, State, or local law regulating or prohibiting the
provision of information on marijuana, the Secretary of Veterans
Affairs shall authorize physicians and other health care providers of
the Veterans Health Administration of the Department of Veterans
Affairs to provide to veterans who are residents of States with State-
approved marijuana programs information regarding the participation of
such veterans in such programs, recommend their participation in such
programs or use of FDA-approved or designated State medical cannabis
products (within the meaning of part J of subchapter V of chapter 9 of
title 21 of the United States Code (the Federal Food, Drug, and
Cosmetic Act)) as part of a course of Veterans Affairs treatment, or
prescribe the use of FDA-approved or designated State medical cannabis
products (within the meaning of part J of subchapter V of chapter 9 of
title 21 of the United States Code (the Federal Food, Drug, and
Cosmetic Act)).
(b) Definitions.--In this section:
(1) Information.--The term ``information'' includes details
such as informational materials, internet websites, and
relevant contact information for State-approved marijuana
programs.
(2) Marijuana.--The term ``marijuana'' has the meaning
given the term ``marihuana'' in section 102 of the Controlled
Substances Act (21 U.S.C. 802).
(3) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, any territory, Federal enclave, or possession of the
United States, and each federally recognized Indian Tribe.
TITLE VII--MISCELLANEOUS UPDATES AND TECHNICAL AMENDMENTS
SEC. 701. UNITED STATES INTERNATIONAL CANNABIS COMMERCE POLICY.
(a) United States Foreign Policy Objectives With Respect to
Cannabis.--
(1) The President of the United States and the United
States Trade Representative shall send trade missions and
engage in treaty-making with foreign jurisdictions that have
legalized the import and export of cannabis to provide for the
legal trade between the United States and foreign
jurisdictions.
(2) The principal negotiating objectives of the United
States with respect to trade shall include the removal of
unjustified foreign barriers to trade in cannabis, cannabis
derivatives, and cannabis products.
(3) The United Nations Ambassador is tasked with similarly
ensuring updates to international accords to reflect current
practices.
(b) Rule of Construction for International Treaties Respecting Drug
Policy; Federal Primacy on Scheduling Decisions.--It is the policy of
the United States that the power of the Federal Government to control,
alter, heighten, lower, abolish, decontrol, or likewise modify drug
control scheduling for any particular substance, including cannabis, is
a vested power of the article I constitutional lawmaking power that no
treaty, including the 1961 Single Convention on Narcotic Drugs, the
1971 Convention on Psychotropic Substances, 1972 Protocol Amending the
Single Convention on Narcotic Drugs, and the 1988 United Nations
Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic
Substances, may infringe upon, oblige or impose a duty on the United
States not to undertake at its pleasure, or otherwise modify. This
provision shall constitute a rule of construction for all Federal
courts to apply in all cases.
SEC. 702. CONTINUED FEDERAL EMPLOYEE DRUG TESTING.
(a) Special Rule for Federal Employee Testing.--Section 503 of the
Supplemental Appropriations Act, 1987 (5 U.S.C. 7301 note) is amended
by adding at the end the following:
``(h) Cannabis.--
``(1) Continued testing.--Notwithstanding the States Reform
Act and the amendments made thereby, the Secretary of Health
and Human Services may continue to include cannabis for
purposes of drug testing of Federal employees subject to
Executive Order 12564, or other applicable Federal laws and
orders.
``(2) Definition.--The term `cannabis' has the meaning
given to the term `marihuana' in section 102 of the Controlled
Substances Act (21 U.S.C. 802).''.
(b) Special Rule for Certain Regulations.--The amendments made by
this section may not be construed to abridge the authority of the
Secretary of Transportation, or the Secretary of the department in
which the Coast Guard is operating, to regulate and screen for the use
of cannabis or a controlled substance within the meaning of section 102
of the Controlled Substances Act (21 U.S.C. 802).
SEC. 703. DEMOGRAPHIC DATA ON NEW INDUSTRY OF CANNABIS BUSINESS OWNERS
AND EMPLOYEES.
(a) In General.--The Bureau of Labor Statistics shall regularly
compile, maintain, and make public data on the demographics of--
(1) individuals who are business owners in the cannabis
industry; and
(2) individuals who are employed in the cannabis industry.
(b) Demographic Data.--The data collected under subsection (a)
shall include data regarding--
(1) age;
(2) certifications and licenses;
(3) disability status;
(4) educational attainment;
(5) family and marital status;
(6) nativity;
(7) race and Hispanic ethnicity;
(8) school enrollment;
(9) veteran status; and
(10) sex.
(c) Confidentiality.--The name, address, and other identifying
information of individuals employed in the cannabis industry shall be
kept confidential by the Bureau and not be made available to the
public.
(d) Definitions.--In this section:
(1) Cannabis.--The term ``cannabis'' means either
``marihuana'', as defined in section 102 of the Controlled
Substances Act (21 U.S.C. 802), or ``cannabis'', as defined
under the State law authorizing the sale or use of cannabis in
which the individual or entity is located.
(2) Cannabis industry.--The term ``cannabis industry''
means an individual or entity that is licensed or permitted
under a State or local law to engage in commercial cannabis-
related activity.
(3) Owner.--The term ``owner'' means an individual or
entity that is defined as an owner under the State or local law
where the individual or business is licensed or permitted.
SEC. 704. CONFORMING AMENDMENT TO CREATE UNIFORMITY OF REFERENCES IN
EXISTING LAW TO CANNABIS, MARIJUANA, OR MARIHUANA.
Wherever, in the statutes of the United States or in the rulings,
regulations, or interpretations of various administrative bureaus and
agencies of the United States--
(1) there appears or may appear the term ``marihuana'' or
``marijuana'', that term shall be struck and the term
``cannabis'' shall be inserted; and
(2) there appears or may appear the term ``Marihuana'' or
``Marijuana'', that term shall be struck and the term
``Cannabis'' shall be inserted.
SEC. 705. SECURITY CLEARANCES.
(a) Security Clearances.--Federal agencies must treat past or
present cannabis use like alcohol, and not a schedule I substance, in
rendering decisions for granting, denying, or rescinding a security
clearance.
(b) Reassessment.--
(1) In general.--An individual shall be entitled to
reassessment of their security clearance credentialing by
mailing a certified letter requesting notice of entitlement of
reassessment of denial of such under this section 705 to the
General Counsel or chief legal officer of the denying Federal
agency.
(2) Notice.--An individual requesting reassessment notice
under paragraph (1) shall be notified either of their
entitlement to such reassessment under paragraph (1), or denial
of entitlement to reassessment, within 90 days of requesting
such review from the denying agency. Any such denial shall
state that there are grounds under than solely past or present
cannabis or marijuana use consistent with like use of alcohol
under which the agency made the decision.
(3) Individual described.--In this subsection, the term
``individual described'' means any individual who has had a
security clearance denied or rescinded for past or present
cannabis or marijuana use.
(4) Judicial review.--Failure to provide notice of
entitlement or non-entitlement is judicially reviewable after
180 days from the making of such request of an agency in the
United States District Court for the Eastern District of
Virginia. Upon finding of undue delay, the court shall enjoin
the agency to make a decision and provide notice within 30
days, and such other equitable relief as the court may see fit.
SEC. 706. EFFECTIVE UPON ENACTMENT.
Except for the provisions made in section 101(d) of title I of this
Act and throughout title V, this Act shall be considered effective as
of its date of enactment.
<all>