[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4226 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4226
To decriminalize and deschedule cannabis, to provide for reinvestment
in certain persons adversely impacted by the War on Drugs, to provide
for expungement of certain cannabis offenses, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 1, 2024
Mr. Booker (for himself, Mr. Schumer, Mr. Wyden, Mr. Fetterman, Mrs.
Murray, Mr. Peters, Mr. Merkley, Mr. Warnock, Ms. Butler, Mr. Welch,
Ms. Smith, Mrs. Gillibrand, Mr. Markey, Mr. Lujan, Ms. Warren, Mr.
Hickenlooper, Mr. Bennet, and Mr. Padilla) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To decriminalize and deschedule cannabis, to provide for reinvestment
in certain persons adversely impacted by the War on Drugs, to provide
for expungement of certain cannabis offenses, 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 ``Cannabis
Administration and Opportunity Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
TITLE I--DECRIMINALIZATION OF CANNABIS, PUBLIC SAFETY, AND STATES'
RIGHTS
Subtitle A--Decriminalization of Cannabis
Sec. 101. Decriminalization of cannabis.
Sec. 102. Transferring agency functions with regard to cannabis.
Subtitle B--Public Safety and States' Rights
Sec. 111. States' rights.
Sec. 112. Diversion of cannabis.
TITLE II--RESEARCH, TRAINING, AND PREVENTION
Subtitle A--Public Health and Biomedical Research
Sec. 201. Societal impact of cannabis legalization study.
Sec. 202. Biomedical research on cannabis.
Sec. 203. Public health surveillance and data collection.
Sec. 204. Awards to prevent underage cannabis use.
Sec. 205. National media campaigns on cannabis use.
Sec. 206. Increasing availability of cannabis products for research
purposes.
Sec. 207. Trans-NIH cannabis consortium.
Sec. 208. Cannabis research interagency advisory committee.
Sec. 209. Awards for cannabis research.
Sec. 210. Department of Veterans Affairs clinical trials on the effects
of cannabis on certain health outcomes of
veterans with chronic pain and post-
traumatic stress disorder.
Sec. 211. Cannabis research infrastructure grants.
Subtitle B--Cannabis-Impaired Driving Prevention
Sec. 221. Definitions.
Sec. 222. Cannabis-impaired driving research.
Sec. 223. DOT cannabis-impaired driving prevention programs.
Sec. 224. State cannabis-impaired driving prevention grant program.
Sec. 225. National cannabis impairment standard.
Sec. 226. Funding.
TITLE III--RESTORATIVE JUSTICE AND OPPORTUNITY
Subtitle A--Opportunity Trust Fund Programs
Sec. 301. Opportunity trust fund programs.
Sec. 302. Comprehensive opioid, stimulant, and substance use disorder
program.
Sec. 303. Availability of small business administration programs and
services to cannabis-related legitimate
businesses and service providers.
Sec. 304. Demographic data of cannabis business owners and employees.
Sec. 305. Pilot program.
Sec. 306. Eliminating disparities among cannabis-related legitimate
businesses and service providers.
Subtitle B--Restorative Justice
Sec. 311. Resentencing and expungement.
Sec. 312. No discrimination in the provision of a Federal public
benefit on the basis of cannabis.
Sec. 313. No adverse effect for purposes of the immigration laws.
Sec. 314. Provision by health care providers of the Department of
Veterans Affairs of recommendations and
opinions regarding veteran participation in
cannabis programs.
Sec. 315. Provision by health care providers of Indian health programs
of recommendations and opinions regarding
participation in cannabis programs.
TITLE IV--TAXATION AND ESTABLISHMENT OF TRUST FUND
Sec. 401. Creation of Opportunity Trust Fund and imposition of taxes
with respect to cannabis products.
TITLE V--PUBLIC HEALTH, CANNABIS ADMINISTRATION, AND TRADE PRACTICES
Subtitle A--Public Health
Sec. 501. FDA regulation of cannabis.
Sec. 502. Amendments to the Federal Food, Drug, and Cosmetic Act.
Sec. 503. Expedited review.
Sec. 504. Regulation of cannabidiol.
Sec. 505. Transition periods.
Sec. 506. Amendment to the Poison Prevention Packaging Act.
Sec. 507. Funding for FDA.
Subtitle B--Federal Cannabis Administration
Sec. 511. Federal cannabis administration.
Sec. 512. Increased funding for the Alcohol, Tobacco, and Cannabis Tax
and Trade Bureau.
TITLE VI--WORKPLACE HEALTH AND SAFETY PROVISIONS
Sec. 601. Definitions.
Sec. 602. Finding regarding employers in the cannabis industry.
Sec. 603. Cannabis as a targeted topic for Susan Harwood training grant
program.
Sec. 604. Guidance on recommended practices.
Sec. 605. Workplace impact of cannabis legalization.
Sec. 606. Grants for community-based education, outreach, and
enforcement with respect to the rights of
workers in the cannabis industry.
TITLE VII--BANKING, HOUSING, AND COMMUNITY DEVELOPMENT
Sec. 701. Purposes; sense of Congress.
Sec. 702. Requirements for filing suspicious activity reports.
Sec. 703. Guidance and examination procedures.
Sec. 704. Investment in communities.
Sec. 705. Fair access to financial services.
Sec. 706. Consumer protections for individuals with nonviolent criminal
record.
TITLE VIII--MISCELLANEOUS
Sec. 801. Comptroller General review of laws and regulations.
Sec. 802. Cannabis Products Advisory Committee.
Sec. 803. Definition of hemp under USDA domestic hemp production
program.
Sec. 804. Grants for hiring and training relating to cannabis
enforcement.
Sec. 805. Severability.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) The communities that have been most harmed by cannabis
prohibition are benefitting the least from the legal marijuana
marketplace.
(2) A legacy of racial and ethnic injustices, compounded by
the disproportionate collateral consequences of 80 years of
cannabis prohibition enforcement, now limits participation in
the industry.
(3) 38 States, the District of Columbia, Puerto Rico, Guam,
the U.S. Virgin Islands, and Indian Tribes have adopted laws
allowing legal access to cannabis, and 24 States, the District
of Columbia, the Commonwealth of the Northern Mariana Islands,
and Guam have adopted laws legalizing cannabis for adult
recreational use.
(4) A total of 49 States have reformed their laws
pertaining to cannabis despite the Schedule I status of
marijuana and its Federal criminalization.
(5) The Food and Drug Administration recommended that
cannabis be rescheduled under the Controlled Substances Act,
from Schedule I to Schedule III, having identified ``credible
scientific support for the medical use of marijuana''.
(6) Legal cannabis businesses support more than 417,000
jobs throughout the United States.
(7) Legal cannabis sales totaled $33,600,000,000 in 2023
and are projected to reach $56,900,000,000 by 2028.
(8) According to the American Civil Liberties Union (ACLU),
enforcing cannabis prohibition laws costs taxpayers
approximately $3,600,000,000 a year.
(9) The continued enforcement of cannabis prohibition laws
resulted in over 227,000 arrests in 2022, disproportionately
impacting people of color who are almost 4 times more likely to
be arrested for cannabis possession than their White
counterparts, despite equal rates of use across populations.
(10) People of color and Native Americans have been
historically targeted by discriminatory sentencing practices
resulting in Black men receiving drug sentences that are 13.1
percent longer than sentences imposed for White men and Latinos
being nearly 6.5 times more likely to receive a Federal
sentence for cannabis possession than non-Hispanic Whites.
(11) In 2013, simple cannabis possession was the fourth
most common cause of deportation for any offense and the most
common cause of deportation for drug law violations. Since
2003, the United States has deported more than 45,000 people
whose most serious conviction was cannabis possession.
(12) Fewer than one-fifth of cannabis business owners
identify as non-white.
(13) Applicants for cannabis licenses are limited by
numerous laws, regulations, and exorbitant permit applications,
licensing fees, and costs in these States, which can require
more than $700,000.
(14) Historically disproportionate arrest and conviction
rates make it particularly difficult for people of color to
enter the legal cannabis marketplace, as many States bar these
individuals from participating.
(15) Federal law severely limits access to loans and
capital for cannabis businesses, disproportionately impacting
minority and Tribal small business owners.
(16) Some States, Indian Tribes, and municipalities have
taken proactive steps to mitigate inequalities in the legal
cannabis marketplace and ensure equal participation in the
industry.
SEC. 3. DEFINITIONS.
In this Act:
(1) Cannabis; cannabis product.--The terms ``cannabis'' and
``cannabis product'' have the same meanings given such terms in
subsection (tt) of section 201 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321) (as added by section 502 of this
Act).
(2) Cannabis offense.--The term ``cannabis offense'' means
a criminal offense related to cannabis--
(A) that, under Federal law, is no longer
punishable pursuant to this Act or the amendments made
under this Act; or
(B) that, under State law, is no longer an offense
or that was designated a lesser offense or for which
the penalty was reduced under State law pursuant to or
following the adoption of a State law authorizing the
sale or use of cannabis.
(3) Indian tribe.--The term ``Indian Tribe'' means the
governing body of any individually identified and federally
recognized Indian or Alaska Native tribe, band, nation, pueblo,
village, community, affiliated Tribal group, or component
reservation included on the list published most recently as of
the date of enactment of this Act pursuant to section 104(a) of
the Federally Recognized Indian Tribe List Act of 1994 (25
U.S.C. 5131(a)).
TITLE I--DECRIMINALIZATION OF CANNABIS, PUBLIC SAFETY, AND STATES'
RIGHTS
Subtitle A--Decriminalization of Cannabis
SEC. 101. DECRIMINALIZATION OF CANNABIS.
(a) Cannabis Removed From Schedule of Controlled Substances.--
(1) Removal in statute.--Schedule I of section 202 of the
Controlled Substances Act (21 U.S.C. 812) is amended--
(A) in subsection (c)--
(i) by striking ``(10) Marihuana.''; and
(ii) in paragraph (17), by inserting ``in
cannabis (as defined in section 201(tt)(1) of
the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 321(tt)(1))) or tetrahydrocannabinols''
before ``in hemp''; and
(B) in subsection (d)(2), by adding at the end the
following new subparagraph:
``(C) Such term does not include any substance made
of or derived from cannabis (as defined in section
201(tt)(1) of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 321(tt)(1)) or hemp (as defined in section
297A of the Agricultural Marketing Act of 1946 (7
U.S.C. 1639o)))''.
(2) Removal from schedule.--Not later than 180 days after
the date of the enactment of this Act, the Attorney General
shall finalize a rulemaking under section 201(a)(2) of the
Controlled Substances Act (21 U.S.C. 811(a)(2)) removing
marihuana and tetrahydrocannabinols in cannabis (as defined in
section 201(tt)(1) of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 321(tt)(1))) from the schedules of controlled
substances. For the purposes of the Controlled Substances Act,
marihuana and tetrahydrocannabinols in cannabis (as so defined)
shall each be deemed to be a drug or other substance that does
not meet the requirements for inclusion in any schedule. A
rulemaking under this paragraph shall be considered to have
taken effect as of the date of enactment of this Act for
purposes of 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.
(3) Rescheduling review of non-cannabis derived
tetrahydrocannibinols and cannabimimetic agents.--
(A) In general.--Not later than 1 year after the
date of enactment of this Act, the Attorney General
shall initiate a review of the schedules applicable to
the substances described in subsections (c)(17) and (d)
of Schedule I of section 202 of the Controlled
Substances Act (21 U.S.C. 812).
(B) Motion to transfer.--Pursuant to the findings
of the review conducted under subparagraph (A), the
Secretary of Health and Human Services shall, as
appropriate, initiate a motion to transfer such
substances between schedules pursuant to section 201 of
the Controlled Substances Act (21 U.S.C. 811).
(b) Conforming Amendments to Controlled Substances Act.--The
Controlled Substances Act (21 U.S.C. 801 et seq.) is amended--
(1) in section 102 (21 U.S.C. 802)--
(A) by striking paragraph (16); and
(B) in paragraph (44), by striking ``marihuana,'';
(2) in section 401(b) (21 U.S.C. 841(b))--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) in clause (vi), by inserting
``or'' after the semicolon;
(II) by striking clause (vii); and
(III) by redesignating clause
(viii) as clause (vii);
(ii) in subparagraph (B)--
(I) in clause (vi), by inserting
``or'' after the semicolon;
(II) by striking clause (vii); and
(III) 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)'';
(B) by striking paragraph (4); and
(C) by redesignating paragraphs (5), (6), and (7)
as paragraphs (4), (5), and (6), respectively;
(3) in section 402(c)(2)(B) (21 U.S.C. 842(c)(2)(B)), by
striking ``, marihuana,'';
(4) in section 403(d)(1) (21 U.S.C. 843(d)(1)), by striking
``, marihuana,'';
(5) in section 418(a) (21 U.S.C. 859(a)), by striking the
last sentence;
(6) in section 419(a) (21 U.S.C. 860(a)), by striking the
last sentence;
(7) in section 422(d) (21 U.S.C. 863(d))--
(A) in the matter preceding paragraph (1), by
striking ``marijuana, cocaine, hashish, hashish oil,''
and inserting ``cocaine,''; and
(B) in paragraph (5), by striking ``, such as a
marihuana cigarette,'';
(8) 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)''; and
(9) in section 1010(b) (21 U.S.C. 960(b))--
(A) in paragraph (1)--
(i) in subparagraph (F), by inserting
``or'' after the semicolon;
(ii) by striking subparagraph (G);
(iii) by redesignating subparagraph (H) as
subparagraph (G); and
(iv) in subparagraph (G), as so
redesignated, by striking the period at the end
and inserting a semicolon;
(B) in paragraph (2)--
(i) in subparagraph (F), by inserting
``or'' after the semicolon;
(ii) by striking subparagraph (G);
(iii) by redesignating subparagraph (H) as
subparagraph (G); and
(iv) in subparagraph (G), as so
redesignated, by striking the period at the end
and inserting a semicolon;
(C) by striking paragraph (4); and
(D) 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--
``(1) any substance''; and
(ii) by striking the period at the end and
inserting ``; and
``(2) any substance not covered under paragraph (1) 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--
``(1) any substance''; and
(B) by striking the period at the end and inserting
``; and
``(1) any substance not covered under paragraph (1) 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--
``(1) any substance''; and
(B) by striking the period at the end and inserting
``; and
``(2) any substance not covered under paragraph (1) 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
``; and
``(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) Prison contraband.--Section 1791(d)(1) of title 18,
United States Code, is amended--
(A) in subparagraph (A), by striking ``marijuana
or'';
(B) in subparagraph (B), by striking ``marijuana
or''; and
(C) in subparagraph (D), by inserting ``, cannabis,
as defined in section 3 of the Cannabis Administration
and Opportunity Act,'' after ``subsection)''.
(8) Other contraband.--Section 80302(a)(1) of title 49,
United States Code, is amended by striking ``, including
marihuana (as defined in section 102 of that Act (21 U.S.C.
802)),''.
(9) Tariff act provisions.--Section 584(a)(2) of the Tariff
Act of 1930 (19 U.S.C. 1584(a)(2)) is amended--
(A) by striking the second sentence and inserting
``If any of such merchandise so found consists of
smoking opium or opium prepared for smoking, the master
of such vessel or person in charge of such vehicle or
the owner of such vessel or vehicle or any person
directly or indirectly responsible for smoking opium or
opium prepared for smoking being in such merchandise
shall be liable to a penalty of $500 for each ounce
thereof so found.''; and
(B) by striking the last sentence and inserting
``As used in this paragraph, the term `opiate' shall
have the same meaning given that term by sections
102(18) of the Controlled Substances Act (21 U.S.C.
802(18)).''.
(d) Retroactivity.--
(1) In general.--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.
(2) Application to pending actions.--With respect to any
pending criminal charges or case and conviction awaiting
sentencing that is impacted by the amendments to the Controlled
Substances Act (21 U.S.C. 801 et seq.) made by this section,
the Government shall drop the relevant charges or seek
dismissal of all pending charges not later than 30 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 1361 or 2241 of
title 28, United States Code, to effectuate immediate release.
(3) Application to defendants previously sentenced.--Not
later than 60 days after the date of enactment of this Act, the
Director of the Bureau of Prisons, United States Marshals
Service, or United States Parole Commission, as applicable,
shall release from its control, and the sentencing court shall
enter an order vacating the conviction and sentence for, any
individual convicted or sentenced before the date of enactment
of this Act for any Federal offense involving marijuana,
marihuana (as defined in section 202(16) of the Controlled
Substances Act (21 U.S.C. 812(16))), or tetrahydrocannabinols
and is 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. Any person not so timely
released and entitled to such release under this provision
shall be entitled to issuance of a writ under section 1361 or
2241 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, and, after
vacatur of that sentence, is also serving a sentence for any
other crime not covered by this Act, or in the case of a
defendant who was convicted or sentenced for any Federal
offense the sentencing range for which was elevated based on a
prior conviction for an offense involving marijuana, marihuana,
or tetrahydrocannabinols, the sentencing court may, on motion
of the defendant, the Director of the Bureau of Prisons, the
Attorney General, 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.
(e) 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) Testing for cannabis.--
``(A) In general.--For purposes of Executive Order
12564, cannabis shall not be treated as an illegal
drug.
``(B) Exception for drug testing.--Notwithstanding
subparagraph (A) or the Cannabis Administration and
Opportunity Act and the amendments made thereby, the
Secretary of Health and Human Services or the head of
an agency may deem cannabis to be a schedule I
controlled substance within the meaning of section
102(6) of the Controlled Substances Act (21 U.S.C.
802(6)), and unlawful to possess under title II or III
of such Act, exclusively for the purpose of drug
testing of any law enforcement officer (as defined in
section 8331 of title 5, United States Code) or any
Federal employee in a position that the head of an
agency determines, in writing, to have significant
involvement in national security or the protection of
life, property, public health, or public safety,
provided that either such employee is subject to this
section, Executive Order 12564, or other applicable
Federal laws and orders.
``(2) Definition.--The term `cannabis' has the meaning
given the term in section 3 of the Cannabis Administration and
Opportunity Act.''.
(f) Special Rule for Certain Regulations.--
(1) In general.--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
a controlled substance.
(2) Controlled substance defined.--In this subsection, the
term ``controlled substance'' means--
(A) any substance covered under section 102 of the
Controlled Substances Act (21 U.S.C. 802) on the day
before the date of enactment of this Act; and
(B) any substance not covered under subparagraph
(A) that was a substance covered under section 102 of
the Controlled Substances Act (21 U.S.C. 802) on
December 1, 2018, and specified by the Secretary of
Transportation.
SEC. 102. TRANSFERRING AGENCY FUNCTIONS WITH REGARD TO CANNABIS.
(a) Transfer of Jurisdiction From the Drug Enforcement
Administration to the Department of Health and Human Services and the
Department of the Treasury.--The functions of the Attorney General,
acting through the Administrator of the Drug Enforcement Administration
relating to cannabis enforcement, shall hereafter be administered by--
(1) the Secretary of Health and Human Services, and
(2) the Secretary of the Treasury.
(b) 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.
(c) Memorandum of Understanding.--
(1) In general.--For purposes of carrying out the purposes
of this Act, not later than 180 days after the date of
enactment of this Act, the Secretary of the Treasury (acting
through the Alcohol, Tobacco, and Cannabis Tax and Trade
Bureau, as so redesignated under subsection (b)) and the
Secretary of Health and Human Services (acting through the
Commissioner of Food and Drugs) shall enter into memorandum of
understanding regarding coordination of their respective
responsibilities with regard to regulation of cannabis and
cannabis products.
(2) Compliance burdens.--For purposes of establishing the
memorandum of understanding described in paragraph (1), the
Secretary of the Treasury and the Secretary of Health and Human
Services shall include consideration of--
(A) any compliance burdens imposed on persons
involved in the cannabis industry who are subject to
regulation under this Act and the amendments made by
this Act, and
(B) to the greatest extent practicable, reduction
of any unnecessary administrative duplication with
respect to such regulation.
Subtitle B--Public Safety and States' Rights
SEC. 111. STATES' RIGHTS.
(a) State Statutes as Operative on Termination of Transportation;
Original Packages.--All cannabis transported into any State or
territory of the United States or remaining therein for use,
consumption, sale, or storage therein, shall, upon arrival in that
State or territory, be subject to the operation and effect of the laws
of that State or territory enacted in the exercise of its police
powers, to the same extent and in the same manner as though the
cannabis had been produced in that State or territory, and shall not be
exempt therefrom by reason of being introduced therein in original
packages or otherwise.
(b) Shipment Into States for Possession or Sale in Violation of
State Law.--The shipment or transportation, in any manner or by any
means whatsoever, of cannabis from a State, territory, or district of
the United States, or place noncontiguous to but subject to the
jurisdiction thereof, into any other State, territory, or district of
the United States, or place noncontiguous to but subject to the
jurisdiction thereof, or from any foreign country into any State,
territory, or district of the United States, or place noncontiguous to
but subject to the jurisdiction thereof, which said cannabis is
intended, by any person interested therein, to be received, possessed,
sold, or in any manner used, either in the original package or
otherwise, in violation of any law of that State, territory, or
district of the United States, or place noncontiguous to but subject to
the jurisdiction thereof, is prohibited.
(c) Transportation of Cannabis and Cannabis Products.--No State or
Indian Tribe may prohibit the transportation or shipment of cannabis or
cannabis products through the State or the territory of the Indian
Tribe, as applicable.
(d) Injunctive Relief.--Section 2 of the Act entitled ``An Act
divesting intoxicating liquors of their interstate character in certain
cases'', approved March 1, 1913 (commonly known as the ``Webb-Kenyon
Act'') (27 U.S.C. 122a), is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (2), (3), and (4)
as paragraphs (3), (4), and (5), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) the term `cannabis' has the meaning given the term in
section 3 of the Cannabis Administration and Opportunity Act
;''; and
(2) in subsections (b) and (c), by inserting ``or
cannabis'' after ``intoxicating liquor'' each place that term
appears.
SEC. 112. DIVERSION OF CANNABIS.
(a) In General.--
(1) Violations of cannabis laws or regulations; penalties
and injunctions.--
(A) Definition.--In this paragraph, the term
``common or contract carrier'' means a carrier holding
a certificate of convenience and necessity, a permit
for contract carrier by motor vehicle, or other valid
operating authority under subtitle IV of title 49,
United States Code, or under equivalent operating
authority from a regulatory agency of the United States
or of any State.
(B) Cannabis diversion.--
(i) In general.--Except as provided in
clause (ii), it shall be unlawful to--
(I) knowingly grow, manufacture,
ship, transport, receive, possess,
sell, or distribute or purchase 10
pounds or more of cannabis without
authorization under a State law or
pursuant to a permit issued under
section 301 of the Federal Alcohol
Administration Act, as added by section
511 of this Act; or
(II) knowingly possess 10 pounds or
more of cannabis that bears no evidence
of the payment of applicable State or
local cannabis taxes in the State or
locality where the cannabis is found,
if--
(aa) the State or local
government requires a stamp,
impression, or other indication
to be placed on packages or
other containers of cannabis to
evidence payment of cannabis
taxes; and
(bb) the cannabis is in the
possession of any person other
than a person holding a permit
under section 301 of the
Federal Alcohol Administration
Act, as added by section 511 of
this Act;
(III) knowingly grow, manufacture,
ship, transport, receive, possess,
sell, or distribute or purchase 20
pounds or more of cannabis without
authorization under a State law or
pursuant to a permit issued under
section 301 of the Federal Alcohol
Administration Act, as added by section
511 of this Act; or
(IV) knowingly possess 20 pounds or
more of cannabis that bears no evidence
of the payment of applicable State or
local cannabis taxes in the State or
locality where the cannabis is found,
if--
(aa) the State or local
government requires a stamp,
impression, or other indication
to be placed on packages or
other containers of cannabis to
evidence payment of cannabis
taxes; and
(bb) the cannabis is in the
possession of any person other
than a person holding a permit
under section 301 of the
Federal Alcohol Administration
Act, as added by section 511 of
this Act.
(ii) Exceptions.--Clause (i) shall not
apply to--
(I) a common or contract carrier
transporting the cannabis involved
under a proper bill of lading or
freight bill which states the quantity,
source, and destination of the
cannabis;
(II) a person--
(aa) who is licensed or
otherwise authorized by the
State where the cannabis is
found to account for and pay
cannabis taxes imposed by such
State; and
(bb) who has complied with
the accounting and payment
requirements relating to such
license or authorization with
respect to the cannabis
involved;
(III) an officer, employee, or
other agent of the United States, an
Indian Tribe, or a State, or any
department, agency, or instrumentality
of the United States, an Indian Tribe,
or a State (including any political
subdivision of an Indian Tribe or a
State) having possession of the
cannabis in connection with the
performance of official duties; or
(IV) a person--
(aa) involved in the
manufacture, marketing, or
distribution of a drug
containing cannabis that is
otherwise in compliance with
State and Federal law; and
(bb) who possesses cannabis
in connection with the lawful
activities described in item
(aa).
(iii) Penalty.--Any person who violates--
(I) subclause (I) or (II) of clause
(i) shall be imprisoned not more than 1
year, fined not more than $50,000, or
both; or
(II) subclause (III) or (IV) of
clause (i) shall be imprisoned not more
than 5 years, fined not more than
$100,000, or both.
(2) Fines.--The penalty provided for in this subsection may
be recovered by the Secretary of the Treasury or by an action
brought by the Attorney General in any court of competent
jurisdiction.
(3) Enforcement.--It shall be the duty of the Attorney
General upon the request of the Secretary of the Treasury to
bring an action for an injunction against any person who
violates, disobeys or disregards any term or provision of this
subtitle or of any lawful notice, order or regulation pursuant
thereto; provided, however, that the Secretary of the Treasury
shall furnish the Attorney General with such material,
evidentiary matter or proof as may be requested by the Attorney
General for the prosecution of such an action.
(b) Tracking and Tracing Regulations.--
(1) Issuance of tracking and tracing regulations.--
(A) In general.--Not later than 1 year after the
date of enactment of this Act, the Secretary of the
Treasury (referred to in this section as the
``Secretary''), acting through the Administrator of the
Alcohol, Tobacco, and Cannabis Tax and Trade Bureau and
in coordination with the Secretary of Health and Human
Services, shall issue regulations relating to the
tracking and tracing of cannabis products pursuant to
paragraph (2).
(B) Good faith consultation with indian tribes.--In
issuing regulations under subparagraph (A), the
Secretary, acting through the Administrator of the
Alcohol, Tobacco, and Cannabis Tax and Trade Bureau and
in coordination with the Secretary of Health and Human
Services, shall conduct good faith, meaningful, and
timely consultations with Indian Tribes.
(2) Regulations concerning recordkeeping for tracking and
tracing.--
(A) In general.--The Secretary shall promulgate
regulations regarding the establishment and maintenance
of records by any person who manufactures, processes,
transports, distributes, receives, packages, holds,
exports, or imports cannabis products.
(B) Inspection.--In promulgating the regulations
described in subparagraph (A), the Secretary shall
consider which records are needed for inspection to
monitor the movement of cannabis products from the
point of production through distribution to retail
outlets to assist in investigating potential illicit
trade, smuggling, or counterfeiting of cannabis
products.
(C) Codes.--The Secretary may require codes on the
labels of cannabis products or other designs or devices
for the purpose of tracking or tracing the cannabis
product through the distribution system.
(D) Size of business.--The Secretary shall take
into account the size of a business in promulgating
regulations under this section.
(E) Recordkeeping by retailers.--The Secretary
shall not require any retailer to maintain records
relating to individual purchasers of cannabis products
for personal consumption.
(3) Records inspection.--
(A) In general.--If the Secretary has a reasonable
belief that a cannabis product is part of an illicit
trade or smuggling or is a counterfeit product, each
person who manufactures, processes, transports,
distributes, receives, holds, packages, exports, or
imports cannabis products shall, at the request of an
officer or employee duly designated by the Secretary,
permit such officer or employee, at reasonable times
and within reasonable limits and in a reasonable
manner, upon the presentation of appropriate
credentials and a written notice to such person, to
have access to and copy all records (including
financial records) relating to such article that are
needed to assist the Secretary in investigating
potential illicit trade, smuggling, or counterfeiting
of cannabis products. The Secretary shall not authorize
an officer or employee of the government of any of the
several States to exercise authority under the
preceding sentence on Indian country without the
express written consent of the Indian Tribe involved.
(B) Failure to comply.--
(i) Compel inspections.--The district
courts of the United States shall have the
authority, pursuant to a civil action brought
by the Secretary, to compel access by any
officer or employee duly designated by the
Secretary to any relevant records described in
subparagraph (A).
(ii) Penalty.--Any person who--
(I) denies access to any relevant
records described in subparagraph (A)
to any officer or employee duly
designated by the Secretary; or
(II) fails to comply with an order
issued by a district court pursuant to
clause (i),
shall be fined not more than $10,000.
(4) Knowledge of illegal transaction.--
(A) Notification.--If the manufacturer or
distributor of a cannabis product has knowledge which
reasonably supports the conclusion that a cannabis
product manufactured or distributed by such
manufacturer or distributor that has left the control
of such person may be or has been--
(i) imported, exported, distributed, or
offered for sale in interstate commerce by a
person without paying duties or taxes required
by Federal, Tribal, or State law; or
(ii) imported, exported, distributed, or
diverted for possible illicit marketing,
the manufacturer or distributor shall promptly notify
the Attorney General and the Secretary of such
knowledge.
(B) Knowledge defined.--For purposes of this
paragraph, the term ``knowledge'' as applied to a
manufacturer or distributor means--
(i) the actual knowledge that the
manufacturer or distributor had; or
(ii) the knowledge which a reasonable
person would have had under like circumstances
or which would have been obtained upon the
exercise of due care.
(5) Consultation.--In carrying out this subsection, the
Secretary shall consult with the Attorney General and the
Commissioner of Food and Drugs, as appropriate.
(6) Consideration of state and other precedent.--In
promulgating the regulations described in this subsection, the
Secretary shall consider--
(A) recommendations and findings by the Cannabis
Products Advisory Committee established under section
1111 of the Federal Food, Drug, and Cosmetic Act;
(B) current practices of States regarding cannabis
and the practices of other regulated industries; and
(C) whether, during the 3-year period described in
section 505(b)(1), unique standards for cannabis
specified for medical use under State law are necessary
or appropriate.
TITLE II--RESEARCH, TRAINING, AND PREVENTION
Subtitle A--Public Health and Biomedical Research
SEC. 201. SOCIETAL IMPACT OF CANNABIS LEGALIZATION STUDY.
(a) In General.--The Comptroller General of the United States shall
conduct an evaluation of the societal impact of the legalization by
States of adult-use of cannabis. Such evaluation shall address, where
information and data are available, a review of the following:
(1) Federal and State law enforcement activities,
including--
(A) arrests related to illicit use, possession,
production, manufacture, and distribution of cannabis;
and
(B) diversion and seizures of cannabis.
(2) Employment and the receipt of Federal welfare
assistance.
(3) Changes in the utilization of health care, including
hospitalization related to methamphetamine and narcotic use and
the use of cannabis for medical purposes.
(4) Analysis of tax revenue remitted to States resulting
from legal cannabis sales.
(5) Any additional areas identified by the Comptroller
General of the United States.
(b) Report.--The Comptroller General of the United States--
(1) not later than 2 years after the date of enactment of
this Act, shall brief the Committee on Finance, the Committee
on Health, Education, Labor, and Pensions, and the Committee on
the Judiciary of the Senate and the Committee on Ways and
Means, the Committee on Energy and Commerce, and the Committee
on the Judiciary of the House of Representatives on the
preliminary findings of the evaluation under subsection (a);
and
(2) at a date agreed upon at the time of the preliminary
briefing described in paragraph (1), submit a final report to
such committees.
SEC. 202. BIOMEDICAL RESEARCH ON CANNABIS.
(a) In General.--The Secretary of Health and Human Services
(referred to in this section as the ``Secretary''), in consultation
with the Director of the National Institutes of Health, shall conduct
or support research on the impacts of cannabis.
(b) Topics.--The research conducted or supported under subsection
(a) may include research on--
(1) the effects of tetrahydrocannabinol on the human brain;
(2) the efficacy of cannabis as a treatment for specific
diseases and conditions, including any impact on chronic pain
and post-traumatic stress disorder;
(3) the impact of the use of cannabis on--
(A) pulmonary function;
(B) cardiovascular events;
(C) cancer, including testicular, ovarian,
transitional cell, and head, neck, and oral cancers,
and chronic illnesses;
(D) mania;
(E) psychosis;
(F) cognitive effects; and
(G) cannabinoid hyperemesis syndrome; and
(4) the identification of additional medical benefits,
harms, and uses of cannabis.
(c) Considerations.--In conducting or supporting the research under
subsection (a), the Secretary may consider--
(1) varying forms of cannabis, including--
(A) full plants and extracts; and
(B) different types of cannabis with significant
variation in phenotypic traits and various ratios of
tetrahydrocannabinol and cannabidiol in chemical
composition; and
(2) varying methods of cannabis delivery, including
combustible and non-combustible inhalation and ingestion.
(d) Annual Reports.--Not later than 18 months after the date of
enactment of this Act, and annually thereafter for the next 4 years,
the Secretary shall submit to the Committee on Health, Education,
Labor, and Pensions and the Committee on Appropriations of the Senate
and the Committee on Energy and Commerce and the Committee on
Appropriations of the House of Representatives, a report that includes
an overview of the research conducted and supported under this section.
(e) Funding.--In addition to amounts otherwise available, there is
appropriated, out of any funds in the Treasury not otherwise
appropriated, $200,000,000 for each of fiscal years 2025 through 2029
to carry out this section.
SEC. 203. PUBLIC HEALTH SURVEILLANCE AND DATA COLLECTION.
(a) In General.--Section 392A of the Public Health Service Act (42
U.S.C. 280b-1) is amended--
(1) in the section heading, by inserting ``and adverse
health effects of cannabis use'' after ``substances'';
(2) in subsection (a)--
(A) in paragraph (2)--
(i) in subparagraph (C) by inserting ``and
adverse health effects of cannabis use'' before
the period; and
(ii) in subparagraph (D) by inserting ``,
cannabis, and polysubstance use'' before the
period; and
(B) in paragraph (4), by inserting ``and collect
data to better understand the use and health effects of
cannabis, stimulants, and polysubstances, and'' after
``conduct studies and evaluations'';
(3) in subsection (e), by striking ``$496,000,000 for each
of fiscal years 2019 through 2023'' and inserting
``$596,000,000 for each of fiscal years 2025 through 2029'';
and
(4) by adding at the end the following:
``(f) Additional Funding.--In addition to amounts otherwise
available, there is appropriated, out of any funds in the Treasury not
otherwise appropriated, $100,000,000 for each of fiscal years 2025
through 2029 to carry out this section.''.
SEC. 204. AWARDS TO PREVENT UNDERAGE CANNABIS USE.
Part D of title V of the Public Health Service Act (42 U.S.C. 290dd
et seq.) is amended by adding at the end the following:
``SEC. 553. AWARDS TO PREVENT UNDERAGE CANNABIS USE.
``(a) In General.--The Secretary, acting through the Assistant
Secretary, shall award grants, contracts, and cooperative agreements to
eligible entities to prevent and reduce underage cannabis use.
``(b) Eligible Entities.--To receive an award under this section,
an entity shall be a State, political subdivision of a State, Indian
Tribe or Tribal organization, an urban Indian organization, a nonprofit
community-based organization, or any other nonprofit entity the
Secretary determines appropriate.
``(c) Use of Funds.--An eligible entity receiving an award under
this subsection shall use funds from such award to--
``(1) establish, enhance, and support culturally- and
linguistically-appropriate programs, including community-based,
school-based, and higher-education based programs, and programs
that target youth within the juvenile justice and child welfare
systems, that offer screening, prevention, early intervention,
diagnosis, treatment, referral, and recovery support services
related to underage cannabis use;
``(2) design, test, evaluate, and disseminate evidence-
based and evidence-informed strategies to maximize the
effectiveness of community-wide approaches to preventing and
reducing underage cannabis use;
``(3) educate children, adolescents, youth, parents, health
care providers, and communities about the dangers of underage
cannabis use, including impaired driving due to cannabis use;
``(4) collect data on underage cannabis use to identify and
address needs, service gaps, and trends;
``(5) strengthen collaboration among communities, the
Federal Government, and State, local, and Tribal governments to
prevent underage cannabis use;
``(6) address community norms regarding underage cannabis
use, reduce opportunities for underage cannabis use, and reduce
the prevalence of negative consequences associated with
underage cannabis use; and
``(7) support other evidence-based and evidence-informed
practices to reduce underage cannabis use, as determined by the
Secretary.
``(d) Supplement Not Supplant.--Funds awarded under this section
shall supplement, and not supplant, existing State, Federal, local, and
Tribal funds to prevent and reduce underage cannabis use.
``(e) Priority Consideration.--In making awards under this section,
the Secretary shall give priority to eligible entities that serve
medically underserved communities, communities with high rates of
underage cannabis use, and communities that have historically
experienced disproportionate arrest and conviction rates related to the
sale, possession, use, manufacture, or cultivation of cannabis (but not
counting convictions involving distribution of cannabis to a minor).
``(f) Funding.--In addition to amounts otherwise available, there
is appropriated, out of any funds in the Treasury not otherwise
appropriated, $15,000,000 for each of fiscal years 2025 through 2029 to
carry out this section.
``(g) Definitions.--For the purposes of this section--
``(1) the terms `Indian Tribe' and `Tribal organization'
have the meanings given such terms in section 4 of the Indian
Self-Determination and Education Assistance Act; and
``(2) the term `urban Indian organization' has the meaning
given such term in section 4 of the Indian Health Care
Improvement Act.''.
SEC. 205. NATIONAL MEDIA CAMPAIGNS ON CANNABIS USE.
(a) In General.--The Secretary of Health and Human Services
(referred to in this section as the ``Secretary''), in consultation
with the Administrator of the National Highway Traffic Safety
Administration, shall fund and oversee the production, broadcasting,
and evaluation of a national public service media campaign to prevent
and reduce underage cannabis use and cannabis impaired driving. Such
campaign shall--
(1) educate the public about--
(A) the negative consequences of underage cannabis
use and cannabis impaired driving; and
(B) the public health and safety benefits of
evidence-based and evidence-informed policies to reduce
underage cannabis use and cannabis impaired driving,
and build community and parental support for, and
cooperation with, enforcement of such policies; and
(2) be conducted--
(A) through multiple media sources;
(B) in a manner that is culturally and
linguistically appropriate; and
(C) in a manner that reflects best practices in
public health communication, including in accessible
formats.
(3) Consultation requirement.--In carrying out the campaign
under this subsection, the Secretary shall consult with
interested parties, including medical, public health, consumer,
parent, disability, law enforcement, community-based, and other
stakeholders, as determined by the Secretary.
(b) Education and Awareness Campaign for Cannabis Use.--The
Secretary, in coordination with the heads of other appropriate
departments and agencies and working through existing programs and
activities, as appropriate, shall advance the education and awareness
of the public (including health care providers, consumers, workplaces,
and other appropriate entities) regarding cannabis use. The education
and awareness campaigns under this subsection shall address--
(1) any dangers and negative consequences of cannabis use;
(2) awareness and prevention of cannabis use disorder;
(3) the effects of cannabis on the human body, including
with respect to the use of cannabis in different circumstances
such as the workplace and while operating motor vehicles;
(4) the effects of cannabis when mixed with other
substances; and
(5) other relevant public health or biomedical research, as
the Secretary determines appropriate.
(c) Report to Congress.--The Secretary shall submit an annual
report to the Committee on Health, Education, Labor, and Pensions of
the Senate and the Committee on Energy and Commerce of the House of
Representatives detailing the production, broadcasting, and evaluation
of the campaigns under subsections (a) and (b). Such reports shall
include--
(1) details regarding the effectiveness of such campaigns
in reducing underage cannabis use;
(2) the need for, and likely effectiveness of, an expanded
campaign under either such subsection; and
(3) details regarding the consultation the Secretary
engaged in pursuant to subsection (a)(2).
(d) Funding.--In addition to amounts otherwise available, there is
appropriated, out of any funds in the Treasury not otherwise
appropriated, $5,000,000 for each of fiscal years 2025 through 2029 to
carry out this section.
SEC. 206. INCREASING AVAILABILITY OF CANNABIS PRODUCTS FOR RESEARCH
PURPOSES.
(a) In General.--The Secretary of Health and Human Services
(referred to in this section as the ``Secretary''), acting through the
Director of the National Institutes of Health and in collaboration with
the Commissioner of Food and Drugs and the Attorney General, shall take
steps to increase the availability and diversity of research grade
cannabis products for intramural and extramural research activities,
including cannabis products with varied cannabinoid concentrations and
cannabis products that reflect regional differences in products
available to be sold directly to consumers.
(b) Guidance.--In carrying out subsection (a), the Secretary may
develop guidance clarifying how entities engaged in extramural research
supported by the Federal Government may access cannabis products
available to be sold directly to consumers.
(c) Congressional Briefing.--Not later than 1 year after the date
of enactment of this Act, the Secretary shall brief the Committee on
Health, Education, Labor, and Pensions and the Committee on the
Judiciary of the Senate and the Committee on Energy and Commerce and
the Committee on the Judiciary of the House of Representatives on the
activities under subsection (a).
(d) Funding.--In addition to amounts otherwise available, there is
appropriated, out of any funds in the Treasury not otherwise
appropriated, $275,000,000 for each of fiscal years 2025 through 2029
to carry out this section.
SEC. 207. TRANS-NIH CANNABIS CONSORTIUM.
Part A of title IV of the Public Health Service Act (42 U.S.C. 281
et seq.) is amended by inserting at the end the following:
``SEC. 404P. TRANS-NIH CANNABIS CONSORTIUM.
``(a) Establishment.--The Director of NIH shall establish and
maintain a consortium to be known as the Trans-NIH Cannabis Research
Consortium (referred to in this section as the `Consortium') to
coordinate cannabis research programs across the National Institutes of
Health.
``(b) Membership.--The members of the Consortium shall be appointed
by the Director of NIH and consist of representatives of multiple
national research institutes and national centers.
``(c) Chair.--The Chair of the Consortium shall be the Director of
the National Institute on Drug Abuse (or the Director's designee).
``(d) Duties.--In coordinating cannabis research programs across
the National Institutes of Health, the Consortium shall--
``(1) establish cannabis research priorities;
``(2) identify gaps and opportunities for research
collaborations involving multiple national research institutes
and national centers; and
``(3) identify opportunities to develop the next generation
of cannabis researchers.
``(e) Consultation.--The Consortium shall consult regularly with
external experts in the field of cannabis research, as appropriate,
including industry, patient organizations, and other stakeholders.
``(f) Reporting.--No later than 1 year after the date of enactment
of the Cannabis Administration and Opportunity Act, and every 2 years
thereafter, the Consortium shall submit to the Committee on Health,
Education, Labor, and Pensions of the Senate and the Committee on
Energy and Commerce of the House of Representatives, and make publicly
available on the website of the National Institutes of Health, a report
on--
``(1) any research project involving cannabis and involving
more than one national research institute or national center
that was supported during the review period;
``(2) any strategic initiatives that include a significant
component related to cannabis;
``(3) career development awards for early-career
researchers focused in cannabis research, including specific
numbers of awards and amount of funding, made during the review
period;
``(4) details on the composition of awards for early-career
researchers, including demographic details indicating the
proportion of recipients from populations that have been
underrepresented in cannabis research; and
``(5) such other information as the Director of NIH
determines appropriate.''.
SEC. 208. CANNABIS RESEARCH INTERAGENCY ADVISORY COMMITTEE.
(a) In General.--There is established within the Department of
Health and Human Services a Cannabis Research Interagency Advisory
Committee (referred to in this subsection as the ``Advisory
Committee'') for purposes of coordinating--
(1) Federal research activities relating to cannabis; and
(2) aspects of all Federal programs and activities relating
to cannabis research, in order to ensure the adequacy and
technical soundness of such programs and activities, to
minimize barriers to such programs and activities, to provide
for the full communication and exchange of information
necessary to maintain adequate coordination of such programs
and activities.
(b) Members.--The Advisory Committee established under subsection
(a) shall consist of the heads of the following agencies or their
designees:
(1) The National Institutes of Health.
(2) The Centers for Disease Control and Prevention.
(3) The Food and Drug Administration.
(4) The Substance Abuse and Mental Health Services
Administration.
(5) The Office of the Assistant Secretary of Health.
(6) The Office of Minority Health.
(7) The Drug Enforcement Administration.
(8) The Alcohol, Tobacco, and Cannabis Tax and Trade Bureau
(as so redesignated by section 102 of this Act).
(9) The Department of Transportation.
(10) Any other agency with subject matter expertise that
the Secretary of Health and Human Services determines
appropriate to advance research on cannabis.
(c) Responsibilities.--In carrying out its duties under this
section, the Advisory Committee shall--
(1) monitor cannabis research across all relevant Federal
departments and agencies, including coordination of Federal
activities with respect to cannabis;
(2) develop a summary of advances in cannabis research;
(3) identify barriers to conducting or supporting cannabis
research;
(4) make recommendations to the Secretary of Health and
Human Services regarding any appropriate changes to such
activities;
(5) make recommendations to the Secretary of Health and
Human Services regarding public participation in decisions
relating to cannabis research, and the process by which public
feedback can be better integrated into such decisions;
(6) develop a strategic plan for the conduct of, and
support for, cannabis research, which shall include--
(A) proposed budgetary requirements; and
(B) recommendations to ensure that cannabis
research of the Department of Health and Human Services
and of other Federal departments and agencies are not
unnecessarily duplicative; and
(7) submit to Congress and the President--
(A) an annual update on the summary of advances
described in paragraph (2); and
(B) an annual update to the strategic plan
described in paragraph (5), including any progress made
in achieving the goals outlined in such strategic plan.
SEC. 209. AWARDS FOR CANNABIS RESEARCH.
(a) In General.--The Secretary of Health and Human Services
(referred to in this section as the ``Secretary'') shall award grants,
contracts, or cooperative agreements to public and nonprofit entities
(including consortiums of such entities) to conduct or support research
on short- and long-term health effects of cannabis, considering
beneficial and harmful effects and public health impacts. Such research
may--
(1) consider the etiology, epidemiology, and health effects
of cannabis use in at-risk or under researched populations,
such as pediatric and older populations, individuals with
chronic illnesses, pregnant and lactating women and their
infants and children, and heavy cannabis users;
(2) consider the pharmacokinetic and pharmacodynamic
properties of cannabis, modes of delivery, different
concentrations, in various populations, including the dose-
response relationships of cannabis and tetrahydrocannabinol or
other cannabinoids;
(3) consider the harms and benefits associated with
understudied cannabis products, such as edibles, concentrates,
and topical products;
(4) consider the short- and long-term harms and benefits
associated with exposure to chemicals and other products
commonly involved in the growing, possessing, and selling of
cannabis;
(5) utilize clinical trials on the potential beneficial and
harmful health effects of using different forms of cannabis,
such as inhaled whole cannabis plant and oral cannabis;
(6) seek to characterize the health effects of cannabis on
unstudied and understudied health endpoints, such as epilepsy
in pediatric populations, symptoms of posttraumatic stress
disorder, childhood and adult cancers, cannabis-related
overdoses and poisonings, and other high-priority health
endpoints; and
(7) provide support for the development of novel diagnostic
technologies that allow for rapid, accurate, and noninvasive
assessment of cannabis exposure and impairment.
(b) Application.--To be eligible to receive an award under this
section, an entity shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may require.
(c) Priority.--In selecting award recipients under this section,
the Secretary shall give priority to any entity that is a minority-
serving institution (defined, for purposes of this subsection, as an
institution and program described in section 326(e)(1) of the Higher
Education Act of 1965 (20 U.S.C. 1063b(e)(1)) and institution described
in section 371(a) of such Act (20 U.S.C. 1067q(a))).
(d) Considerations.--In making awards under this section, the
Secretary, to the extent practicable, may ensure equitable distribution
of awards among the geographical regions of the United States.
(e) Reporting.--
(1) Reports from entities.--Each entity, or consortium of
such entities, that receives an award under this section shall
submit an annual report to the Secretary on the activities
conducted under such award, and other information as the
Secretary may require.
(2) Report to congress.--Not later than 5 years after the
date of enactment of this Act and every 5 years thereafter, the
Secretary shall submit to the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on Energy
and Commerce of the House of Representatives a report that
provides a summary of the activities associated with awards
made under this section.
(3) Public availability.--The Secretary shall make reports
submitted under paragraph (2) publicly available on the website
of the Department of Health and Human Services.
(f) Funding.--In addition to amounts otherwise available, there is
appropriated, out of any funds in the Treasury not otherwise
appropriated, $200,000,000 for each of fiscal years 2025 through 2029
to carry out this section.
SEC. 210. DEPARTMENT OF VETERANS AFFAIRS CLINICAL TRIALS ON THE EFFECTS
OF CANNABIS ON CERTAIN HEALTH OUTCOMES OF VETERANS WITH
CHRONIC PAIN AND POST-TRAUMATIC STRESS DISORDER.
(a) Clinical Trials Required.--
(1) In general.--The Secretary of Veterans Affairs shall
carry out a series of clinical trials on the effects of
medical-grade cannabis on the health outcomes of covered
veterans diagnosed with chronic pain and covered veterans
diagnosed with post-traumatic stress disorder.
(2) Required elements.--The clinical trials required by
paragraph (1) shall include--
(A) with respect to covered veterans diagnosed with
chronic pain, an evaluation of the effects of the use
of cannabis on--
(i) osteopathic pain (including pain
intensity and pain-related outcomes);
(ii) the reduction or increase in opioid
use or dosage;
(iii) the reduction or increase in
benzodiazepine use or dosage;
(iv) the reduction or increase in alcohol
use;
(v) inflammation;
(vi) sleep quality;
(vii) agitation; and
(viii) quality of life; and
(B) with respect to covered veterans diagnosed with
post-traumatic stress disorder, an evaluation of the
effects of the use of cannabis on--
(i) the symptoms of post-traumatic stress
disorder (PTSD) as established by or derived
from the clinician administered PTSD scale, the
PTSD checklist, the PTSD symptom scale, the
post-traumatic diagnostic scale, and other
applicable methods of evaluating symptoms of
post- traumatic stress disorder;
(ii) the reduction or increase in
benzodiazepine use or dosage;
(iii) the reduction or increase in alcohol
use;
(iv) mood;
(v) anxiety;
(vi) social functioning;
(vii) agitation;
(viii) suicidal ideation; and
(ix) sleep quality, including frequency of
nightmares and night terrors.
(3) Optional elements.--The clinical trials required by
paragraph (1) may include an evaluation of the effects of the
use of cannabis to treat chronic pain and post-traumatic stress
disorder on--
(A) pulmonary function;
(B) cardiovascular events;
(C) head, neck, and oral cancer;
(D) testicular cancer;
(E) ovarian cancer;
(F) transitional cell cancer;
(G) intestinal inflammation;
(H) motor vehicle accidents;
(I) mania;
(J) psychosis;
(K) cognitive effects;
(L) cannabinoid hyperemesis syndrome;
(M) neuropathy;
(N) spasticity;
(O) substance use disorder; or
(P) mental health disorder.
(b) Long-Term Observational Study.--The Secretary may carry out a
long-term observational study of the participants in the clinical
trials required by subsection (a).
(c) Type of Cannabis.--
(1) In general.--In carrying out the clinical trials
required by subsection (a), the Secretary shall study varying
forms of cannabis, including whole plant raw material and
extracts.
(2) Plant cultivars.--Of the varying forms of cannabis
required under paragraph (1), the Secretary shall study not
fewer than seven unique plant cultivars with ratios of
tetrahydrocannabinol to cannabidiol in each of the following
categories:
(A) Less than 1:5.
(B) Between 1:2 and 1:5.
(C) Approximately 1:2.
(D) Approximately 1:1.
(E) Approximately 2:1.
(F) Between 2:1 and 5:1.
(G) More than 5:1.
(d) Use of Control and Experimental Groups.--The clinical trials
required by subsection (a) shall include both a control group and an
experimental group that shall--
(1) be of similar size and structure; and
(2) represent the demographics of the veteran population,
as determined by the most recent data from the American
Community Survey of the Bureau of the Census that is available
prior to the commencement of the clinical trials.
(e) Limitation on Enrollment of Certain Veterans.--In enrolling
veterans in a clinical trial under subsection (a), the Secretary shall
avoid enrolling veterans who--
(1) have existing substance use disorder or are at high-
risk for developing substance use disorder; or
(2) have contraindications to medicinal cannabis, which may
include--
(A) veterans with acute psychosis or at-risk of
psychosis;
(B) veterans for whom cannabis is contraindicated
based on current medications taken, prescribed and
nonprescribed;
(C) veterans with severe cardiovascular,
immunological, liver, or kidney disease; and
(D) veterans who are pregnant or breastfeeding.
(f) Data Preservation.--The clinical trials required by subsection
(a) shall include a mechanism to ensure the preservation of all data,
including all data sets, collected or used for purposes of such trials
in a manner that will facilitate further research.
(g) Implementation.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall--
(1) develop a plan to implement this section and submit
such plan to the Committee on Veterans' Affairs of the Senate
and the Committee on Veterans' Affairs of the House of
Representatives; and
(2) issue any requests for proposals the Secretary
determines appropriate for such implementation.
(h) Effect on Other Benefits.--The eligibility or entitlement of a
covered veteran to any other benefit under the laws administered by the
Secretary or any other provision of law shall not be affected by the
participation of the covered veteran in a clinical trial under
subsection (a) or a study under subsection (b).
(i) Periodic Reports.--During the five-year period beginning on the
date of the enactment of this Act, the Secretary shall submit
periodically, but not less frequently than annually, to the Committee
on Veterans' Affairs of the Senate and the Committee on Veterans'
Affairs of the House of Representatives reports on the implementation
of this section.
(j) Covered Veteran Defined.--In this section, the term ``covered
veteran'' means a veteran who is enrolled in the patient enrollment
system of the Department of Veterans Affairs established and operated
under section 1705(a) of title 38, United States Code.
SEC. 211. CANNABIS RESEARCH INFRASTRUCTURE GRANTS.
Title VIII of the Higher Education Act of 1965 (20 U.S.C. 1161a et
seq.) is amended by adding at the end the following:
``PART BB--CANNABIS RESEARCH INFRASTRUCTURE GRANT PROGRAM
``SEC. 899. CANNABIS RESEARCH INFRASTRUCTURE GRANT PROGRAM.
``(a) In General.--The Secretary, in consultation with the
Secretary of Health and Human Services and, as appropriate, with other
relevant Federal agencies, shall award grants, on a competitive basis,
to institutions of higher education to enable such institutions to
develop or enhance the necessary infrastructure for exploratory
cannabis research, including the cultivation of cannabis for research
purposes.
``(b) Applications.--To be qualified to receive a grant under this
section, an institution of higher education shall submit an application
to the Secretary at such time, in such manner, and containing such
information as the Secretary may require, including--
``(1) a description of the projects that the institution of
higher education plans to carry out with grant funds; and
``(2) how such projects will address the research
infrastructure needs of the institution of higher education.
``(c) Priority in Awards.--In awarding grants under this section,
the Secretary shall give priority to--
``(1) institutions of higher education described in section
371(a);
``(2) under-resourced institutions of higher education,
including community colleges; and
``(3) institutions of higher education with experience in
conducting or supporting cannabis research or developing
academic courses or programs for students in the cannabis
industry.
``(d) Use of Funds.--An institution of higher education that
receives a grant under this section shall use the grant funds to
develop or enhance the necessary infrastructure for exploratory
cannabis research, including--
``(1) cultivating cannabis for research purposes;
``(2) purchasing, renting, or leasing scientific or
laboratory equipment;
``(3) constructing or upgrading cultivation or laboratory
facilities;
``(4) purchasing or enhancing storage and security needs;
``(5) establishing school policies, procedures, or training
to conduct or support research, such as policies and training
to safely handle and store substances;
``(6) paying State fees to apply for and receive
certificates or registrations to handle certain substances; or
``(7) recruiting or retaining staff necessary for
developing or enhancing the cannabis research infrastructure of
the institution of higher education, including for training and
support purposes.
``(e) Awards.--Notwithstanding any other provision of law,
activities supported by grants under this section shall not be
considered violations of section 120 for the purposes of enforcing or
assessing compliance with that section.
``(f) Definitions.--In this section:
``(1) Community college.--The term `community college'
means--
``(A) a public institution of higher education,
including additional locations, at which the highest
awarded degree, or the predominantly awarded degree, is
an associate degree; or
``(B) a Tribal College or University (as defined in
section 316).
``(2) Institution of higher education.--The term
`institution of higher education' has the meaning given that
term in section 101.
``(g) Funding.--In addition to amounts otherwise available, there
is appropriated, out of any funds in the Treasury not otherwise
appropriated, $200,000,000 for each of fiscal years 2025 through 2029
to carry out this section.''.
Subtitle B--Cannabis-Impaired Driving Prevention
SEC. 221. DEFINITIONS.
In this subtitle:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the National Highway Traffic Safety
Administration.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(3) THC.--The term ``THC'' means tetrahydrocannabinol.
SEC. 222. CANNABIS-IMPAIRED DRIVING RESEARCH.
(a) Cannabis-Impaired Driving Data.--
(1) In general.--The Secretary shall collect and, as
appropriate, share with the Secretary of Health and Human
Services, data relating to cannabis-impaired driving, or a
combination of cannabis and another substance, including
through the collection of crash data specific to crashes
involving drivers with--
(A) THC in their system; or
(B) a combination of THC and another substance in
their system.
(2) National roadside survey.--
(A) In general.--Not later than 1 year after the
date of enactment of this Act, the Administrator shall
initiate a National Roadside Survey to collect data on
drivers with THC in their system.
(B) Report.--Not later than 3 years after the date
of enactment of this Act, the Secretary shall submit to
the Committees on Commerce, Science, and
Transportation, Environment and Public Works, and
Health, Education, Labor, and Pensions of the Senate
and the Committee on Transportation and Infrastructure
of the House of Representatives a report summarizing
the data acquired, and conclusions drawn, from the
National Roadside Survey required under subparagraph
(A).
(b) Research on Risks of Cannabis-Impaired Driving.--
(1) Study required.--
(A) In general.--Not later than 3 years after the
date of enactment of this Act, the Secretary shall
carry out a study to evaluate and quantify the risks of
cannabis-impaired driving.
(B) Requirements.--The study required under
subparagraph (A) shall analyze--
(i) whether there is an increased
likelihood of crashing a motor vehicle after
recent cannabis use;
(ii) the effect of cannabis on driving
behavior;
(iii) whether there is a correlation
between THC level (as tested in oral fluids)
and level of impairment;
(iv) whether the current Standard Field
Sobriety Test developed by the National Highway
Traffic Safety Administration accurately
identifies cannabis impairment;
(v) whether driving behavior changes
depending on frequency of cannabis use;
(vi) whether there are any potential
increased risks associated with using cannabis
together with another substance; and
(vii) any other data necessary to improve
safe driving outcomes, as determined by the
Secretary.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, and annually thereafter until the date
on which the study required under paragraph (1) is complete,
the Secretary shall submit to the Committees on Commerce,
Science, and Transportation, Environment and Public Works, and
Health, Education, Labor, and Pensions of the Senate and the
Committee on Transportation and Infrastructure of the House of
Representatives a report summarizing the data acquired, and
conclusions drawn, from the study required under paragraph (1).
SEC. 223. DOT CANNABIS-IMPAIRED DRIVING PREVENTION PROGRAMS.
(a) In General.--The Secretary shall research and implement data-
driven strategies to educate the public about the dangers of cannabis-
impaired driving, which shall include the following:
(1) Cannabis-impaired driving use prevention best
practices.--
(A) In general.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall
develop and issue best practices for States and
communities to prevent cannabis-impaired driving,
including impaired driving involving the use of
cannabis and another substance and practices targeting
drivers under the age of 21, in consultation with the
Director of the Centers for Disease Control and
Prevention, the Secretary of Health and Human Services,
and the heads of other Federal agencies as appropriate.
(B) Updates.--Not less frequently than biannually,
the Secretary shall update and reissue the best
practices required under subparagraph (A) as new
research and data becomes available.
(2) Cannabis-impaired driving use prevention campaigns.--
Not later than 2 years after the date of enactment of this Act,
the Secretary shall establish and carry out national campaigns
to prevent cannabis-impaired driving, including--
(A) cannabis-impaired driving involving the use of
cannabis and another substance; and
(B) cannabis-impaired driving among drivers under
the age of 21.
(b) Campaign Evaluation.--Not less frequently than once every 3
years, the Secretary shall evaluate the effectiveness of the campaigns
required under subsection (a)(2) and the activities carried out by
States using a grant awarded under section 409 of title 23, United
States Code, by using a variety of factors, including--
(1) collecting data, including behavioral data, and
comparing that data from before and after the campaigns;
(2)(A) engaging with stakeholders that were involved in the
campaigns; and
(B) analyzing feedback from those stakeholders on what the
stakeholders saw as strengths and weaknesses of the campaigns;
(3) determining whether the campaigns accomplished the
objectives the Secretary set out to accomplish through analysis
of data relating to the campaigns; and
(4) any other factors the Secretary determines appropriate
included in the document of the National Highway Traffic Safety
Administration entitled ``The Art of Appropriate Evaluation: A
Guide for Highway Safety Program Managers'' and dated December
2008 (or a successor document).
(c) Report.--Not later than 6 months after the date on which the
Secretary completes an evaluation conducted under subsection (b), the
Secretary shall submit to the Committees on Commerce, Science, and
Transportation, Environment and Public Works, and Health, Education,
Labor, and Pensions of the Senate and the Committee on Transportation
and Infrastructure of the House of Representatives a report that--
(1) summarizes the data collected and provides the analysis
of the data from an evaluation conducted under subsection (b);
(2) includes recommendations for future impaired driving
campaigns; and
(3) includes any determinations that a national campaign or
an activity carried out by a State using a grant awarded under
section 409 of title 23, United States Code, is ineffective at
preventing cannabis-impaired driving.
SEC. 224. STATE CANNABIS-IMPAIRED DRIVING PREVENTION GRANT PROGRAM.
(a) In General.--Chapter 4 of title 23, United States Code, is
amended by inserting after section 408 the following:
``Sec. 409. State cannabis-impaired driving prevention grant program
``(a) Definitions.--In this section:
``(1) Cannabis.--The term `cannabis' has the meaning given
the term in subsection (tt) of section 201 of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 321).
``(2) Grant program.--The term `grant program' means the
grant program established under subsection (b).
``(3) THC.--The term `THC' has the meaning given the term
in section 221 of the Cannabis Administration and Opportunity
Act.
``(b) Establishment.--Not later than 1 year after the date of
enactment of the Cannabis Administration and Opportunity Act, the
Secretary, acting through the Administrator of the National Highway
Traffic Safety Administration, shall establish a program to provide
grants to States, in accordance with subsection (c), to implement
programs to prevent impaired driving due to cannabis use.
``(c) Eligibility.--The Secretary may provide a grant under this
section to any State that--
``(1) describes how the State will use the grant funds in
accordance with a highway safety program under section 402,
including how the State will implement the best practices
developed by the Secretary under section 223(a)(1) of the
Cannabis Administration and Opportunity Act; and
``(2) agrees to provide data and information, as determined
by the Secretary, to assist with the evaluation of the
effectiveness of the eligible activities described in
subsection (d).
``(d) Use of Funds.--A State may use a grant awarded under this
section for the following activities:
``(1) Enforcement activities, including--
``(A) to train public safety personnel to detect
impaired driving due to the use of cannabis or a
combination of cannabis and another substance;
``(B) to increase the capacity of impaired driving
toxicology testing laboratories in the State to support
impaired driving investigations, including to purchase
equipment, hire staff, provide training, and improve
procedures, including to improve toxicology testing
standards to be consistent with the standards contained
in the document of the National Safety Council entitled
`Recommendations for Toxicological Investigation of
Drug-Impaired Driving and Motor Vehicle Fatalities-2021
Update' (or a successor document);
``(C) to train for and implement impaired driving
assessment programs or other tools designed to increase
the probability of identifying the recidivism risk of
an individual convicted of driving under the influence
of cannabis, or a combination of cannabis and another
substance, and to determine the most effective mental
health or substance abuse treatment or sanction that
will reduce that risk;
``(D) to develop and implement high-visibility
enforcement efforts relating to cannabis-impaired
driving; and
``(E) for court support of high-visibility
enforcement efforts, to train and educate criminal
justice professionals (including law enforcement
personnel, prosecutors, judges, and probation officers)
to assist those professionals in--
``(i) handling cannabis-impaired driving
cases;
``(ii) hiring traffic safety resource
prosecutors;
``(iii) hiring judicial outreach liaisons;
and
``(iv) establishing driving while
intoxicated courts.
``(2) Data collection activities, including--
``(A) to collect data relating to the use of
cannabis, drugs, or multiple substances by drivers,
including the prevalence of the use of those substances
among drivers arrested for impaired driving; and
``(B) to increase drug testing and reporting for
all fatal crashes and serious injuries to better
understand the scope of cannabis-impaired driving, or a
combination of cannabis and another substance.
``(3) Education activities, including--
``(A) to develop and carry out educational
campaigns to better educate the public about the harms
associated with cannabis-impaired driving, including
impaired driving associated with the use of cannabis
and another substance; and
``(B) to participate in national campaigns
organized by the Secretary under section 223(a)(2) of
the Cannabis Administration and Opportunity Act.
``(e) Prohibition.--The Secretary may prohibit the use of grant
funds for an activity described in subsection (d) if the Secretary
determines that the activity is ineffective at preventing cannabis-
impaired driving after conducting an evaluation required under section
223(b) of the Cannabis Administration and Opportunity Act.
``(f) Grant Amounts.--
``(1) In general.--The allocation of grant funds to a State
under this section for a fiscal year shall be in proportion to
the apportionment of funds a State receives under section
402(c)(2).
``(2) Requirement.--Not less than 10 percent of the funds
allocated to a State under this section shall be used to carry
out activities described in subsection (d)(1)(B).
``(g) Federal Share.--
``(1) In general.--For the first 3 fiscal years after the
date on which the grant program is established under subsection
(b), and each fiscal year thereafter for a State that meets the
condition described in paragraph (2)(B) during that fiscal
year, the Federal share of the costs of activities carried out
with a grant awarded under the grant program shall be 80
percent in any fiscal year in which the State is awarded a
grant.
``(2) Decreased federal share.--
``(A) In general.--For any State that does not meet
the condition described in subparagraph (B), the
Federal share of the costs of activities carried out
with a grant awarded under the grant program shall be--
``(i) 70 percent in the fourth fiscal year
after the date on which the grant program is
established under subsection (b);
``(ii) 60 percent in the fifth fiscal year
after that date; and
``(iii) 50 percent in the sixth fiscal year
after that date and each fiscal year
thereafter.
``(B) Condition.--The condition referred to in
paragraph (1) and subparagraph (A) is that the State
shall implement an open container law relating to
cannabis products.
``(h) Funding.--In addition to amounts otherwise available, there
is appropriated, out of any money in the Treasury not otherwise
appropriated, $45,000,000 for each of fiscal years 2025 through 2029 to
carry out this section.''.
(b) Clerical Amendment.--The analysis for chapter 4 of title 23,
United States Code, is amended by inserting after the item relating to
section 408 the following:
``409. State cannabis-impaired driving prevention grant program.''.
SEC. 225. NATIONAL CANNABIS IMPAIRMENT STANDARD.
(a) In General.--Not later than 3 years after the date of enactment
of this Act, and once every 2 years thereafter, the Secretary shall
make a determination as to whether or not it is feasible to establish a
national standard for determining impairment for cannabis-impaired
driving.
(b) Rulemaking Required.--If the Secretary determines that
establishing a national standard relating to cannabis-impaired driving
under subsection (a) is feasible, the Secretary shall, not later than 1
year after that determination, promulgate regulations establishing a
model marijuana impairment standard for States.
SEC. 226. FUNDING.
In addition to amounts otherwise available, there is appropriated,
out of any money in the Treasury not otherwise appropriated,
$30,000,000 for each of fiscal years 2025 through 2029 to carry out
sections 222 and 223.
TITLE III--RESTORATIVE JUSTICE AND OPPORTUNITY
Subtitle A--Opportunity Trust Fund Programs
SEC. 301. OPPORTUNITY TRUST FUND PROGRAMS.
(a) Cannabis Justice Office; Community Reinvestment Grant
Program.--
(1) Cannabis justice office.--Part A of title I of the
Omnibus Crime Control and Safe Streets Act of 1968 (34 U.S.C.
10101 et seq.) is amended by inserting after section 109 the
following:
``SEC. 110. CANNABIS JUSTICE OFFICE.
``(a) Establishment.--There is established within the Office of
Justice Programs a Cannabis Justice Office.
``(b) Director.--The Cannabis Justice Office shall be headed by a
Director who shall be appointed by the Assistant Attorney General for
the Office of Justice Programs. The Director shall report to the
Assistant Attorney General for the Office of Justice Programs. The
Director shall award grants and may enter into compacts, cooperative
agreements, and contracts on behalf of the Cannabis Justice Office. The
Director may not engage in any employment other than that of serving as
the Director, nor may the Director hold any office in, or act in any
capacity for, any organization, agency, or institution with which the
Office makes any contract or other arrangement.
``(c) Employees.--
``(1) In general.--The Director shall employ as many full-
time employees as are needed to carry out the duties and
functions of the Cannabis Justice Office under subsection (d).
Such employees shall be exclusively assigned to the Cannabis
Justice Office.
``(2) Initial hires.--Not later than 180 days after the
date of enactment of this section, the Director shall--
``(A) hire not less than \1/3\ of the total number
of employees of the Cannabis Justice Office;
``(B) not greater than \1/2\ of the employees
assigned to the Cannabis Justice Office by term
appointment that may after 2 years be converted to
career appointment; and
``(C) hire not fewer than 1 employee to serve as a
Tribal Relations Coordinator.
``(3) Legal counsel.--At least 1 employee hired for the
Cannabis Justice Office shall serve as legal counsel to the
Director and shall provide counsel to the Cannabis Justice
Office.
``(d) Duties and Functions.--The Cannabis Justice Office is
authorized to--
``(1) administer the Community Reinvestment Grant Program;
and
``(2) perform such other functions as the Assistant
Attorney General for the Office of Justice Programs may
delegate, that are consistent with the statutory obligations of
this section.''.
(2) Community reinvestment grant program.--Title I of the
Omnibus Crime Control and Safe Streets Act of 1968 (34 U.S.C.
10101 et seq.) is amended by adding at the end the following:
``PART PP--COMMUNITY REINVESTMENT GRANT PROGRAM
``SEC. 3061. AUTHORIZATION.
``The Director of the Cannabis Justice Office shall establish and
carry out a grant program, known as the `Community Reinvestment Grant
Program', to provide eligible entities with funds to administer
services for individuals adversely impacted by the War on Drugs,
including--
``(1) job training;
``(2) reentry services;
``(3) legal aid for civil and criminal cases, including
expungement of cannabis convictions;
``(4) literacy programs;
``(5) youth recreation or mentoring programs; and
``(6) health education programs.
``SEC. 3062. DEFINITIONS.
``In this part:
``(1) The term `cannabis conviction' means a conviction, or
adjudication of juvenile delinquency, for a cannabis offense,
(as defined in section 3 of the Cannabis Administration and
Opportunity Act).
``(2) The term `eligible entity' means a nonprofit
organization, as described in section 501(c)(3) of the Internal
Revenue Code and exempt from taxation under section 501(a) of
such Code, an Indian Tribe, a Tribal organization (as defined
in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5304)), or a Native Hawaiian-serving
entity that is representative of a community or a significant
segment of a community with experience in providing relevant
services to individuals adversely impacted by the War on Drugs
in that community.
``(3) The term `individual adversely impacted by the War on
Drugs' has the meaning given the term in section 301(b)(1) of
the Cannabis Administration and Opportunity Act.
``(4) The term `Native Hawaiian-serving entity' means--
``(A) a Native Hawaiian organization (as defined in
section 6207 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7517));
``(B) the Department of Hawaiian Home Lands; and
``(C) the Office of Hawaiian Affairs.''.
(b) Cannabis Opportunity Program; Equitable Licensing Grant
Program.--
(1) Definitions.--In this subsection:
(A) Administration; administrator.--The terms
``Administration'' and ``Administrator'' mean the Small
Business Administration and the Administrator thereof,
respectively.
(B) Eligible indian tribe.--The term ``eligible
Indian Tribe'' means an Indian Tribe that has taken
steps--
(i) to create an automatic process, at no
cost to an individual, to expunge, destroy, or
seal criminal records for cannabis offenses;
and
(ii) to eliminate violations or other
penalties for individuals under parole,
probation, pre-trial, or other Tribal criminal
supervision for a cannabis offense.
(C) Eligible state or locality.--The term
``eligible State or locality'' means a State or
locality that has taken steps--
(i) to create an automatic process, at no
cost to an individual, to expunge, destroy, or
seal criminal records for cannabis offenses;
and
(ii) to eliminate violations or other
penalties for individuals under parole,
probation, pre-trial, or other State or local
criminal supervision for a cannabis offense.
(D) Federal poverty level.--The term ``Federal
Poverty Level'' has the meaning given the term
``poverty line'' in section 2110(c) of the Social
Security Act (42 U.S.C. 1397jj(c)).
(E) Individual adversely impacted by the war on
drugs.--The term ``individual adversely impacted by the
War on Drugs'' means an individual--
(i) who has had an income below 250 percent
of the Federal Poverty Level for not fewer than
5 of the past 10 years, as of the date on which
the individual seeks to participate in a
program established under this section or an
amendment made by this section; and
(ii)(I) who has been arrested for, or
convicted of, the sale, possession, use,
manufacture, or cultivation of cannabis (except
for a conviction involving distribution to a
minor); or
(II) the parent, sibling, spouse, or child
of whom has been arrested for, or convicted of,
an offense described in subclause (I).
(F) Small business concern owned and controlled by
socially and economically disadvantaged individuals.--
The term ``small business concern owned and controlled
by socially and economically disadvantaged
individuals'' has the meaning given the term in section
8(d)(3)(C) of the Small Business Act (15 U.S.C.
637(d)(3)(C)).
(G) State.--The term ``State'' means--
(i) each of the several States;
(ii) the District of Columbia;
(iii) the Commonwealth of Puerto Rico; and
(iv) any territory or possession of the
United States.
(2) Cannabis restorative opportunity program.--
(A) In general.--The Administrator shall establish
and carry out a program, to be known as the ``Cannabis
Restorative Opportunity Program'', to provide loans and
technical assistance under section 7(m) of the Small
Business Act (15 U.S.C. 636(m)) to assist small
business concerns owned and controlled by socially and
economically disadvantaged individuals that operate--
(i) in eligible States or localities; or
(ii) in the jurisdiction of eligible Indian
Tribes.
(B) Tribal set aside.--Of the amounts made
available to carry out subparagraph (A), 5 percent
shall be used to provide loans and technical assistance
under section 7(m) of the Small Business Act (15 U.S.C.
636(m)) to assist small business concerns owned and
controlled by socially and economically disadvantaged
individuals that operate in the jurisdiction of an
eligible Indian Tribe.
(3) Equitable licensing grant program.--The Administrator
shall establish and carry out a grant program, to be known as
the ``Equitable Licensing Grant Program'', to provide any
eligible State or locality or eligible Indian Tribe funds to
develop and implement equitable cannabis licensing programs
that minimize barriers to cannabis licensing and employment for
individuals adversely impacted by the War on Drugs, provided
that each grantee includes in the cannabis licensing program of
the grantee not less than 4 of the following elements:
(A) A waiver of cannabis license application fees
for an individual who--
(i) has had an income below 250 percent of
the Federal Poverty Level for not fewer than 5
of the 10 years preceding the date on which the
individual submits an application; and
(ii) is a first-time applicant.
(B) A prohibition on the denial of a cannabis
license based on a conviction for a cannabis offense
that took place before the eligible State or locality
(or, in the case of a locality, the State in which the
locality is located) or eligible Indian Tribe legalized
the production, distribution, or possession of cannabis
or the date of enactment of this Act, as applicable.
(C) A prohibition on restrictions for licensing
relating to criminal convictions except with respect to
a criminal conviction related to owning and operating a
business.
(D) A prohibition on cannabis license holders
engaging in suspicionless cannabis drug testing of
their prospective or current employees, except with
respect to drug testing for safety-sensitive positions
under part 40 of title 49, Code of Federal Regulations,
or any successor regulations.
(E) The establishment of a cannabis licensing board
that--
(i) is reflective of the racial, ethnic,
economic, and gender composition of the
eligible State or locality or eligible Indian
Tribe;
(ii) includes at least 1 representative
from an eligible Indian Tribe that has
jurisdiction within that eligible State or
locality or that has Tribal jurisdiction, as
applicable; and
(iii) shall serve as an oversight body of
the equitable licensing program.
(4) Study on programs.--
(A) GAO study.--Not later than 1 year after the
date of enactment of this Act, and annually thereafter,
the Comptroller General of the United States, in
consultation with the Administrator, shall conduct a
study on the individuals and entities receiving
assistance under the Cannabis Restorative Opportunity
and Equitable Licensing Programs established under
paragraphs (2) and (3), respectively, which shall
include--
(i) the types of assistance by State; and
(ii) a description of--
(I) the efforts by the
Administration to increase access to
capital for cannabis-related small
business concerns owned and controlled
by socially and economically
disadvantaged individuals and small
business concerns owned and controlled
by individuals adversely impacted by
the War on Drugs; and
(II) the racial, ethnic, economic
and gender composition of the eligible
State or locality.
(B) Report.--The Comptroller General of the United
States shall submit a report on the results of each
study conducted under subparagraph (A) to--
(i) the Committee on Small Business and
Entrepreneurship of the Senate;
(ii) the Committee on Small Business of the
House of Representatives;
(iii) the Committee on the Judiciary of the
Senate; and
(iv) the Committee on the Judiciary of the
House of Representatives.
(c) Appropriations.--
(1) Community reinvestment grant program.--In addition to
amounts otherwise available, there is appropriated, out of any
funds in the Treasury not otherwise appropriated,
$1,650,000,000 for fiscal year 2025, to remain available until
September 30, 2029, to carry out the program under part PP of
title I of the Omnibus Crime Control and Safe Streets Act of
1968 (34 U.S.C. 10101 et seq.), as added by subsection (a)(2).
(2) Cannabis restorative opportunity program.--In addition
to amounts otherwise available, there is appropriated, out of
any funds in the Treasury not otherwise appropriated,
$17,000,000 for fiscal year 2025, to remain available until
September 30, 2029, to carry out the program under subsection
(b)(2).
(3) Equitable licensing grant program.--In addition to
amounts otherwise available, there is appropriated, out of any
funds in the Treasury not otherwise appropriated, $550,000,000
for fiscal year 2025, to remain available until September 30,
2029, to carry out the program under subsection (b)(3).
SEC. 302. COMPREHENSIVE OPIOID, STIMULANT, AND SUBSTANCE USE DISORDER
PROGRAM.
(a) In General.--Part LL of title I of the Omnibus Crime Control
and Safe Streets Act of 1968 (34 U.S.C. 10701 et seq.) is amended--
(1) in the part heading, by striking ``opioid abuse grant''
and inserting ``opioid, stimulant, and substance use
disorder'';
(2) in section 3021(a) (34 U.S.C. 10701(a))--
(A) in paragraph (2), by striking ``opioid abuse''
and inserting ``substance use disorder'';
(B) in paragraph (7), by striking ``opioid abuse''
and inserting ``substance use disorder''; and
(C) in paragraph (10), by striking ``opioid'' and
inserting ``substance misuse and''; and
(3) in section 3022(4) (34 U.S.C. 10702(4)), by striking
``opioid abuse'' and inserting ``substance misuse and abuse''.
(b) Appropriation.--In addition to amounts otherwise available,
there is appropriated, out of any funds in the Treasury not otherwise
appropriated, $200,000,000 for each of fiscal years 2025 through 2029
to carry out the program under part LL of title I of the Omnibus Crime
Control and Safe Streets Act of 1968, as amended by subsection (a) of
this section.
SEC. 303. AVAILABILITY OF SMALL BUSINESS ADMINISTRATION PROGRAMS AND
SERVICES TO CANNABIS-RELATED LEGITIMATE BUSINESSES AND
SERVICE PROVIDERS.
(a) Definitions Relating to Cannabis-Related Legitimate Businesses
and Service Providers.--Section 3 of the Small Business Act (15 U.S.C.
632) is amended by adding at the end the following:
``(gg) Cannabis-Related Legitimate Businesses and Service
Providers.--In this Act:
``(1) Cannabis; cannabis product.--The terms `cannabis' and
`cannabis product' have the meanings given those terms in
section 201 of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 321).
``(2) Cannabis-related legitimate business.--The term
`cannabis-related legitimate business' means a manufacturer,
producer, or any person or company that is a small business
concern and that--
``(A) engages in any activity described in
subparagraph (B) pursuant to a law established by an
Indian tribe (as defined in section 8(a)(13)), a State,
or a political subdivision of a State, as determined by
that Indian tribe (as so defined), State, or political
subdivision; and
``(B) participates in any business or organized
activity that involves handling cannabis or cannabis
products, including cultivating, producing,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing cannabis or
cannabis products.
``(3) Cannabis-related service provider.--The term
`cannabis-related service provider'--
``(A) means a business, organization, or other
person that--
``(i) sells goods or services to a
cannabis-related legitimate business; or
``(ii) 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
``(B) 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, distributing, or purchasing cannabis or
cannabis products.''.
(b) Small Business Development Centers.--Section 21(c) of the Small
Business Act (15 U.S.C. 648(c)) is amended by adding at the end the
following:
``(9) Services for Cannabis-Related Legitimate Businesses and
Service Providers.--A small business development center may not decline
to provide services to an otherwise eligible small business concern
under this section solely because the concern is a cannabis-related
legitimate business or cannabis-related service provider.''.
(c) Women's Business Centers.--Section 29 of the Small Business Act
(15 U.S.C. 656) is amended by adding at the end the following:
``(p) Services for Cannabis-Related Legitimate Businesses and
Service Providers.--A women's business center may not decline to
provide services to an otherwise eligible small business concern under
this section solely because the concern is a cannabis-related
legitimate business or cannabis-related service provider.''.
(d) Score.--Section 8(b)(1)(B) of the Small Business Act (15 U.S.C.
637(b)(1)(B)) is amended by adding at the end the following: ``The head
of the SCORE program established under this subparagraph may not
decline to provide services to an otherwise eligible small business
concern solely because the concern is a cannabis-related legitimate
business or cannabis-related service provider.''.
(e) Veteran Business Outreach Centers.--Section 32 of the Small
Business Act (15 U.S.C. 657b) is amended by adding at the end the
following:
``(h) Services for Cannabis-Related Legitimate Businesses and
Service Providers.--A Veteran Business Outreach Center may not decline
to provide services to an otherwise eligible small business concern
under this section solely because the concern is a cannabis-related
legitimate business or cannabis-related service provider.''.
(f) Community Navigators Pilot Program.--Section 5004 of the
American Rescue Plan Act of 2021 (15 U.S.C. 9013) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Assistance to Cannabis-Related Legitimate Businesses and
Service Providers.--The Administrator may not decline to make a grant
to or enter into a contract or cooperative agreement with an entity
under this section solely because the entity is a cannabis-related
business or cannabis-related service provider (as defined in section 3
of the Small Business Act (15 U.S.C. 632)).''.
(g) 7(a) Loans.--Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended by adding at the end the following:
``(38) Loans to cannabis-related legitimate businesses and
service providers.--The Administrator may not decline to
provide a guarantee for a loan under this subsection, and a
lender may not decline to make a loan under this subsection, to
an otherwise eligible small business concern solely because the
concern is a cannabis-related legitimate business or cannabis-
related service provider.''.
(h) Disaster Loans.--Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended--
(1) by redesignating the second paragraph (16) (relating to
statute of limitations) as paragraph (17); and
(2) by inserting after paragraph (17), as so redesignated,
the following:
``(18) Assistance to cannabis-related legitimate businesses
and service providers.--The Administrator may not decline to
provide assistance under this subsection to an otherwise
eligible small business concern solely because the concern is a
cannabis-related legitimate business or cannabis-related
service provider.''.
(i) Microloans.--Section 7(m) of the Small Business Act (15 U.S.C.
636(m)) is amended by adding at the end the following:
``(14) Assistance to cannabis-related legitimate businesses
and service providers.--The Administrator may not decline to
make a loan or a grant under this subsection, and an eligible
intermediary may not decline to provide assistance under this
subsection to an otherwise eligible borrower, eligible
intermediary, or eligible nonprofit entity (as applicable),
solely because such borrower, intermediary, or nonprofit entity
is a cannabis-related legitimate business or cannabis-related
service provider.''.
(j) Small Business Investment Company Debentures To Finance
Cannabis-Related Legitimate Businesses and Service Providers.--Part A
of title III of the Small Business Investment Act of 1958 (15 U.S.C.
681 et seq.) is amended by adding at the end the following:
``SEC. 321. DEBENTURES TO FINANCE CANNABIS-RELATED LEGITIMATE
BUSINESSES AND SERVICE PROVIDERS.
``(a) Guarantees.--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 cannabis-related service provider (as
defined in section 3 of the Small Business Act (15 U.S.C. 632)).
``(b) Other Assistance.--A small business investment company may
not decline to provide assistance under this title to an otherwise
eligible small business concern solely because the small business
concern is a cannabis-related legitimate business or cannabis-related
service provider (as defined in section 3 of the Small Business Act (15
U.S.C. 632)).''.
(k) State or Local Development Company Loans.--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:
``SEC. 511. LOANS TO FINANCE CANNABIS-RELATED LEGITIMATE BUSINESSES AND
SERVICE PROVIDERS.
``(a) Loans and Loan Guarantees.--The Administrator may not decline
to make or provide a guarantee for a loan under this title to an
otherwise eligible qualified State, Tribal, or local development
company solely because such qualified State, Tribal, or local
development company provides financing to an entity that is a cannabis-
related legitimate business or cannabis-related service provider (as
defined in section 3 of the Small Business Act (15 U.S.C. 632)).
``(b) Other Assistance.--A qualified State or local development
company may not decline to provide assistance under this title to an
otherwise eligible small business concern solely because such small
business concern is a cannabis-related legitimate business or cannabis-
related service provider (as defined in section 3 of the Small Business
Act (15 U.S.C. 632)).''.
SEC. 304. DEMOGRAPHIC DATA 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.--Notwithstanding any other provision in this
section, the name, address, and other identifying information of an
individual described in subsection (a) shall be kept confidential by
the Bureau of Labor Statistics and not be made available to the public.
(d) Definitions.--In this section:
(1) Cannabis industry.--The term ``cannabis industry''
means the industry, in any State, jurisdiction of an Indian
Tribe, or locality in the United States, in which an individual
or entity--
(A) conducts businesses pursuant to a permit issued
under section 302 of the Federal Alcohol Administration
Act, as added by section 511; or
(B) is otherwise licensed or permitted under the
law in such State, jurisdiction of such Indian Tribe,
or law in such locality to engage in a commercial
cannabis-related activity.
(2) Owner.--The term ``owner'', with respect to a business,
means an individual or entity that is defined as an owner under
the State, Tribal, or local law where the individual or entity
is licensed or permitted to operate such business.
(3) State.--The term ``State'' means--
(A) each of the several States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any territory or possession of the United
States.
SEC. 305. PILOT PROGRAM.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by
adding at the end the following:
``(o) Pilot Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible intermediary.--The term `eligible
intermediary' means--
``(i) a private, nonprofit entity,
including a private, nonprofit community
development corporation, a consortium of
private, nonprofit organizations or nonprofit
community development corporations, and an
agency of or nonprofit entity established by a
Native American Tribal Government, that--
``(I) seeks or has been awarded a
loan from the Administrator to make
loans to small business concerns under
this subsection; and
``(II) has not less than 1 year of
experience making loans to startup or
socially and economically disadvantaged
small business concerns;
``(ii) a community development financial
institution, as defined in section 103 of the
Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4702); and
``(iii) a minority depository institution,
as defined in section 308 of the Financial
Institutions Reform, Recovery, and Enforcement
Act of 1989 (12 U.S.C. 1463 note).
``(B) Individual adversely impacted by the war on
drugs.--The term `individual adversely impacted by the
War on Drugs' has the meaning given the term in section
301(b) of the Cannabis Administration and Opportunity
Act.
``(C) Program.--The term `Program' means the small
business intermediary lending pilot program established
under paragraph (2).
``(D) Socially and economically disadvantaged small
business concern.--The term `socially and economically
disadvantaged small business concern' has the meaning
given the term in section 8(a)(4)(A).
``(2) Establishment.--There is established a 10-year small
business intermediary lending pilot program under which the
Administrator may--
``(A) make direct loans to eligible intermediaries
for the purpose of making loans to startup small
business concerns, small business concerns owned and
controlled by individuals adversely impacted by the War
on Drugs, or socially and economically disadvantaged
small business concerns; and
``(B) in conjunction with the direct loans
described in subparagraph (A), make grants to eligible
intermediaries for the purpose of providing intensive
marketing, management, regulatory compliance, and
technical assistance to the small business concerns
described in subparagraph (A) that receive a loan under
this subsection.
``(3) Loans to eligible intermediaries.--
``(A) Application.--Each eligible intermediary
desiring a loan under this subsection shall submit an
application to the Administrator that describes--
``(i) the type of small business concerns
to be assisted;
``(ii) the size and range of loans to be
made;
``(iii) the interest rate and terms of
loans to be made;
``(iv) the geographic area to be served and
the economic, poverty, and unemployment
characteristics of the area;
``(v) the status of small business concerns
in the area to be served and an analysis of the
availability of credit;
``(vi) the marketing, management,
regulatory compliance, and other technical
assistance to be provided in connection with a
loan made under this subsection; and
``(vii) the qualifications of the applicant
to carry out this subsection.
``(B) Loan limits.--No loan may be made to an
eligible intermediary under this subsection if the
total amount outstanding and committed to the eligible
intermediary by the Administrator would, as a result of
such loan, exceed $10,000,000 during the participation
of the eligible intermediary in the Program.
``(C) Loan duration.--Loans made by the
Administrator under this subsection shall be for a term
of 20 years.
``(D) Applicable interest rate.--Loans made by the
Administrator to an eligible intermediary under the
Program shall bear an annual interest rate equal to the
interest rate described in subsection (m)(3)(F)(ii).
``(E) Fees; collateral.--The Administrator may not
charge any fees or require collateral with respect to
any loan made to an eligible intermediary under this
subsection.
``(F) Delayed payments.--The Administrator shall
not require the repayment of principal or interest on a
loan made to an eligible intermediary under the Program
during the 2-year period beginning on the date of the
initial disbursement of funds under that loan.
``(G) Maximum participants and amounts.--During
each fiscal year, the Administrator may make loans
under the Program--
``(i) to not more than 30 eligible
intermediaries; and
``(ii) in a total amount of not more than
$300,000,000.
``(4) Loans to small business concerns.--
``(A) In general.--The Administrator, through an
eligible intermediary, shall make loans to the small
business concerns described in paragraph (2) for
eligible uses under subsection (a).
``(B) Maximum loan.--An eligible intermediary may
not make a loan under this subsection of more than
$200,000 to any 1 small business concern.
``(C) Applicable interest rates.--
``(i) In general.--Subject to clause (ii),
a loan made by an eligible intermediary to a
small business concern under this subsection--
``(I) may have a fixed or a
variable interest rate; and
``(II) shall bear an interest rate
specified by the eligible intermediary
in the application of the eligible
intermediary for a loan under this
subsection.
``(ii) Restrictions.--The Administrator may
limit the interest rate or provide forbearance
or deferment on repayment of a loan made by an
eligible intermediary to a small business
concern under this section.
``(D) Review restrictions.--The Administrator may
not review individual loans made by an eligible
intermediary to a small business concern before
approval of the loan by the eligible intermediary.
``(5) Funding.--In addition to amounts otherwise available,
there is appropriated, out of any funds in the Treasury not
otherwise appropriated, for fiscal year 2025, to remain
available until September 30, 2029--
``(A) $90,000,000 to carry out paragraph (2)(A);
and
``(B) $41,000,000 to carry out paragraph (2)(B).
``(6) Termination.--The authority of the Administrator to
make loans under the Program shall terminate on the date that
is 10 years after the date of enactment of this subsection.
``(7) Sense of the senate.--It is the sense of the Senate
that the Administrator should issue regulations to ensure that
the processing and disbursement of loans under this subsection
prioritizes individuals adversely impacted by the War on
Drugs.''.
SEC. 306. ELIMINATING DISPARITIES AMONG CANNABIS-RELATED LEGITIMATE
BUSINESSES AND SERVICE PROVIDERS.
(a) Definitions.--In this section--
(1) the terms ``cannabis-related legitimate business'' and
``cannabis-related service provider'' have the meanings given
those terms in section 3 of the Small Business Act (15 U.S.C.
632), as added by section 303; and
(2) the term ``individual adversely impacted by the War on
Drugs'' has the meaning given the term in section 301(b).
(b) Review.--The Administrator of the Small Business
Administration--
(1) shall review regulations, policies, and guidance of the
Administration to eliminate disparities for cannabis-related
legitimate businesses and cannabis-related service providers,
including by reducing regulatory burdens and increasing loan
eligibility for minority businesses and individuals adversely
impacted by the War on Drugs; and
(2) in carrying out paragraph (1), may consider effective,
State-level systems designed to eliminate disparities for
cannabis-related legitimate businesses and cannabis-related
service providers.
Subtitle B--Restorative Justice
SEC. 311. RESENTENCING AND EXPUNGEMENT.
(a) Expungement of Federal Cannabis Offense Convictions for
Individuals Not Under a Criminal Justice Sentence.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, each judicial district shall conduct a
comprehensive review and issue an order expunging each
conviction or adjudication of juvenile delinquency for a
Federal cannabis offense entered by each district court of the
United States in the judicial district during the period
beginning on May 1, 1971, and ending on the day before the date
of enactment of this Act. Each district court of the United
States shall also issue an order expunging any arrests
associated with each expunged conviction or adjudication of
juvenile delinquency.
(2) Notification.--To the greatest extent practicable, each
district court of the United States 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.
(3) Right to petition court for expungement.--At any point
after the date of enactment of this Act, any individual with a
prior conviction or adjudication of juvenile delinquency for a
Federal cannabis offense, who is not serving a criminal
sentence, may file a motion for expungement. If the expungement
of such a conviction or adjudication of juvenile delinquency is
required pursuant to this Act, the court shall expunge the
conviction or adjudication, and any associated arrests. If the
individual is indigent, counsel shall be appointed to represent
the individual in any proceedings under this subsection.
(4) Sealed record.--The court shall seal all records
related to a conviction or adjudication of juvenile delinquency
that has been expunged under this subsection. Such records may
only be made available by further order of the court.
(5) Certification.--The court shall provide a certificate
to the individual receiving expungement for a prior Federal
cannabis offense. Any records of this certification shall be
sealed under paragraph (4).
(b) Effect of Expungement.--An individual who has had an arrest, a
conviction, or juvenile delinquency adjudication expunged under this
section--
(1) may treat the arrest, conviction, or adjudication as if
it never occurred;
(2) shall be immune from any civil or criminal penalties
related to perjury, false swearing, or false statements, for a
failure to disclose such arrest, conviction, or adjudication;
and
(3) shall not be subject to any loss of Federal benefits
related to the expunged cannabis offense.
(c) Exception.--An individual who at sentencing received an
aggravating role adjustment pursuant to section 3B1.1(a) of the United
States Sentencing Guidelines in relation to a Federal cannabis offense
conviction shall not be eligible for expungement of that Federal
cannabis offense conviction under this section, unless a district court
of the United States conducting the sentencing review finds mitigating
factors to warrant expungement, including the age of the individual at
the time of the arrest, conviction, or adjudication, the role of the
individual in the offense, or whether it was the first Federal cannabis
offense committed by the individual.
(d) Study.--The Comptroller General of the United States, in
consultation with the Secretary of Health and Human Services, shall
conduct a demographic study of individuals convicted of a Federal
cannabis offense. Such study shall include information about the age,
race, ethnicity, sex, and gender identity of those individuals, the
type of community such users dwell in, and such other demographic
information as the Comptroller General determines should be included.
(e) Report.--Not later than 2 years after the date of enactment of
this Act, the Comptroller General of the United States shall submit to
Congress a report on the results of the study conducted under
subsection (d).
(f) Definitions.--In this section:
(1) The term ``Federal cannabis offense'' means an offense
that is no longer punishable pursuant to this Act or the
amendments made under this Act.
(2) The term ``expunge'' means, with respect to an arrest,
a conviction, or a juvenile delinquency adjudication, the
removal of the record of such arrest, conviction, or
adjudication from each official index or public record.
(3) The term ``serving a criminal sentence'' means, with
respect to an individual, that the individual is serving a term
of probation, parole, supervised release, imprisonment,
official detention, pre-release custody, or work release,
pursuant to a sentence or disposition of juvenile delinquency
imposed on or after May 1, 1971.
SEC. 312. NO DISCRIMINATION IN THE PROVISION OF A FEDERAL PUBLIC
BENEFIT ON THE BASIS OF CANNABIS.
(a) In General.--No person may be denied any Federal public benefit
(as such term is defined in section 401(c) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1611(c))) on the basis of any use or possession of cannabis, or
on the basis of a conviction or adjudication of juvenile delinquency
for a cannabis offense, by that person.
(b) Security Clearances.--A Federal agency may not grant, deny, or
rescind a security clearance based solely on past or present cannabis
use.
SEC. 313. NO ADVERSE EFFECT FOR PURPOSES OF THE IMMIGRATION LAWS.
(a) In General.--For purposes of the immigration laws (as defined
in section 101 of the Immigration and Nationality Act (8 U.S.C.
1101(a))), cannabis may not be considered a controlled substance, and
an alien may not be denied any benefit or protection under the
immigration laws based on any event, including conduct, a finding, an
admission, addiction or abuse, an arrest, a juvenile adjudication, or a
conviction, relating to cannabis, regardless of whether the event
occurred before, on, or after the effective date of this Act.
(b) Amendments to the Immigration and Nationality Act.--The
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended--
(1) in section 101(f)(3) (8 U.S.C. 1101(f)(3)), by striking
``(except as such paragraph relates to a single offense of
simple possession of 30 grams or less of marihuana)'';
(2) in section 210(c)(2)(B)(ii)(III) (8 U.S.C.
1160(c)(2)(B)(ii)(III)), by striking ``, except for so much of
such paragraph as relates to a single offense of simple
possession of 30 grams or less of marihuana'';
(3) in section 212(h) (8 U.S.C. 1182(h)), by striking ``and
subparagraph (A)(i)(II) of such subsection insofar as it
relates to a single offense of simple possession of 30 grams or
less of marijuana'';
(4) in section 237(a)(2)(B)(i) (8 U.S.C. (a)(2)(B)(i)), by
striking ``, other than a single offense involving possession
for one's own use of 30 grams or less of marijuana'';
(5) in section 240(c)(6) (8 U.S.C. 1229a(c)(6)), by
amending subparagraphs (A) and (B) to read as follows:
``(A) Right to file.--
``(i) In general.--Except as provided in
clause (ii), a noncitizen may file 1 motion to
reconsider a decision that the alien is
removable from the United States.
``(ii) Removal orders impacted by cannabis
offenses.--In addition to the motion authorized
under clause (i), a removal order shall be
reconsidered upon a motion filed at any time by
a noncitizen demonstrating that--
``(I) such order was based, in
whole or in part, on an offense
relating to cannabis that rendered the
noncitizen deportable or inadmissible;
or
``(II) an offense relating to
cannabis--
``(aa) rendered the
noncitizen ineligible for a
benefit or relief under this
Act; or
``(bb) formed all or part
of the basis for the denial of
a benefit or relief under this
Act.
``(B) Deadline.--A motion to reconsider under
subparagraph (A)(i) shall be filed not later than 30
days after the date of entry of the relevant final
administrative order of removal.'';
(6) in section 244(c)(2)(A)(iii)(II) (8 U.S.C.
1254a(c)(2)(A)(iii)(II)) by striking ``, except for so much of
such paragraph as relates to a single offense of simple
possession of 30 grams or less of marijuana'';
(7) in section 245(h)(2)(B) (8 U.S.C. 1255(h)(2)(B)) by
striking ``(except for so much of such paragraph as related to
a single offense of simple possession of 30 grams or less of
marijuana)''; and
(8) in section 245A(d)(2)(B)(ii)(II) (8 U.S.C.
1255a(d)(2)(B)(ii)(II)) by striking ``, except for so much of
such paragraph as relates to a single offense of simple
possession of 30 grams or less of marihuana''.
SEC. 314. PROVISION BY HEALTH CARE PROVIDERS OF THE DEPARTMENT OF
VETERANS AFFAIRS OF RECOMMENDATIONS AND OPINIONS
REGARDING VETERAN PARTICIPATION IN CANNABIS PROGRAMS.
Not later than 180 days after the date of the enactment of this
Act, the Secretary of Veterans Affairs shall update all applicable
regulations, guidance, memoranda, and policies of the Department of
Veterans Affairs to authorize physicians and other health care
providers employed by the Department--
(1) to provide recommendations and opinions to veterans
regarding the participation of such veterans in cannabis
programs authorized under State or Federal law; and
(2) to complete forms reflecting such recommendations and
opinions.
SEC. 315. PROVISION BY HEALTH CARE PROVIDERS OF INDIAN HEALTH PROGRAMS
OF RECOMMENDATIONS AND OPINIONS REGARDING PARTICIPATION
IN CANNABIS PROGRAMS.
Not later than 180 days after the date of enactment of this Act,
the Director of the Indian Health Service shall update all applicable
regulations, guidance, memoranda, and policies of the Indian Health
Service to authorize health care providers (as defined in section
805(a) of the Indian Health Care Improvement Act (25 U.S.C. 1675(a)))--
(1) to provide recommendations and opinions to patients
relating to the participation of those patients in State or
Tribal cannabis programs authorized under Federal or State law;
and
(2) to complete forms reflecting those recommendations and
opinions.
TITLE IV--TAXATION AND ESTABLISHMENT OF TRUST FUND
SEC. 401. CREATION OF OPPORTUNITY TRUST FUND AND IMPOSITION OF TAXES
WITH RESPECT TO CANNABIS PRODUCTS.
(a) Cannabis Revenue and Regulation Act.--Subtitle E of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new chapter:
``CHAPTER 56--CANNABIS PRODUCTS
``subchapter a. tax on cannabis products
``subchapter b. authorization and bond requirements
``subchapter c. operations
``subchapter d. penalties
``Subchapter A--Tax on Cannabis Products
``Sec. 5901. Imposition of tax.
``Sec. 5902. Definitions.
``Sec. 5903. Liability and method of payment.
``Sec. 5904. Exemption from tax; transfers in bond.
``Sec. 5905. Credit, refund, or drawback of tax.
``SEC. 5901. IMPOSITION OF TAX.
``(a) Imposition of Tax.--There is hereby imposed on any cannabis
product produced in or imported into the United States a tax equal to--
``(1) for any such product removed during the first 5
calendar years ending after the date on which this chapter
becomes effective, the applicable percentage of such product's
removal price, and
``(2) for any product removed during any calendar year
after the calendar years described in paragraph (1), the
applicable equivalent amount.
``(b) Applicable Percentage.--For purposes of subsection (a)(1),
the applicable percentage shall be determined as follows:
``(1) For any cannabis product sold during the first 2
calendar years in which this chapter becomes effective, 10
percent.
``(2) For any cannabis product sold during the calendar
year after the period described in paragraph (1), 15 percent.
``(3) For any cannabis product sold during the calendar
year after the period described in paragraph (2), 20 percent.
``(4) For any cannabis product sold during the calendar
year after the period described in paragraph (3), 25 percent.
``(c) Applicable Equivalent Amount.--
``(1) In general.--For purposes of subsection (a)(2), the
term `applicable equivalent amount' means, with respect to any
cannabis product removed during any calendar year, an amount
equal to--
``(A) in the case of any cannabis product not
described in subparagraph (B), the product of the
applicable rate per ounce multiplied by the number of
ounces of such product (and a proportionate tax at the
like rate on all fractional parts of an ounce of such
product), and
``(B) in the case of any THC product, the product
of the applicable rate per gram multiplied by the
number of grams of tetrahydrocannabinol in such product
(and a proportionate tax at the like rate on all
fractional parts of a gram of tetrahydrocannabinol in
such product).
``(2) Applicable rates.--
``(A) In general.--For purposes of paragraph
(1)(A), the term `applicable rate per ounce' means,
with respect to any cannabis product removed during any
calendar year, 25 percent of the prevailing sales price
of cannabis flowers sold in the United States during
the 12-month period ending one calendar quarter before
such calendar year, expressed on a per ounce basis, as
determined by the Secretary.
``(B) THC products.--For purposes of paragraph
(1)(B), the term `applicable rate per gram' means, with
respect to any cannabis product removed during any
calendar year, 25 percent of the prevailing sales price
of tetrahydrocannabinol sold in the United States
during the 12-month period ending one calendar quarter
before such calendar year, expressed on a per gram
basis, as determined by the Secretary.
``(d) Time of Attachment on Cannabis Products; Lien for Tax.--
``(1) Time of attachment.--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.
``(2) Lien for tax.--
``(A) In general.--The tax imposed by this section
shall be a first lien on the cannabis product from the
time the product is in existence as such until the tax
is paid.
``(B) Exceptions.--The lien imposed by this
paragraph shall terminate in the case of products
produced at a cannabis production facility when such
products are--
``(i) withdrawn from bonded premises on
determination of tax,
``(ii) withdrawn from bonded premises free
of tax under provisions of section 5904(a), or
``(iii) exported, deposited in a foreign-
trade zone, or deposited in a customs bonded
warehouse.
``(e) Credit for Qualified Domestic Manufacturers.--
``(1) In general.--In the case of a qualified domestic
manufacturer of cannabis products, there shall be allowed as a
credit against any tax imposed by subsection (a) for the
calendar year an amount equal to 50 percent of the applicable
tax amount for such calendar year.
``(2) Applicable tax amount.--
``(A) In general.--For purposes of this subsection,
the applicable tax amount shall be an amount equal to
the lesser of--
``(i) the amount of any tax imposed by
subsection (a) for the calendar year, or
``(ii) the phase-in amount.
``(B) Phase-in amount.--For purposes of
subparagraph (A), the phase-in amount shall be an
amount equal to--
``(i) for the calendar year which includes
the date on which this chapter first becomes
effective, $2,000,000,
``(ii) for the first calendar year
subsequent to the calendar year described in
clause (i), $2,000,000,
``(iii) for the second calendar year
subsequent to the calendar year described in
clause (i), $3,000,000,
``(iv) for the third calendar year
subsequent to the calendar year described in
clause (i), $4,000,000, and
``(v) for any calendar years subsequent to
the calendar year described in clause (iv),
$5,000,000.
``(3) Credit not allowed for cannabis received in bond,
imported, smuggled, or illegally produced.--
``(A) In general.--The credit under this subsection
shall not apply in the case of any cannabis which is--
``(i) received in bond,
``(ii) imported,
``(iii) smuggled into the United States, or
``(iv) produced other than as authorized by
this chapter.
``(B) Substantial processing exception.--
Subparagraph (A)(i) shall not apply with respect to any
cannabis which is transferred in bond solely as
unprocessed plant matter if such cannabis is processed
by the taxpayer to produce an extract which contains no
plant matter.
``(C) Contract packaging and labeling exception.--
In the case of cannabis transferred in bond from the
person who produced such cannabis (hereinafter referred
to as `transferor') to another person for packaging or
labeling of such cannabis, and returned to the
transferor for removal, subparagraph (A)(i) shall not
apply, but only if the transferor retains title during
the entire period between such production and removal.
``(4) Single taxpayer.--Pursuant to rules issued by the
Secretary, 2 or more entities (whether or not under common
control) that produce any cannabis product under a license,
franchise, or other arrangement shall be treated as a single
taxpayer for purposes of the application of this subsection.
``(5) Time for determining and allowing credit.--The credit
allowable by paragraph (1)--
``(A) shall be determined at the same time the tax
is determined under subsection (a) of this section, and
``(B) shall be allowable at the time the tax
described in such subsection is payable as if the
credit allowable by this subsection constituted a
reduction in the rate of such tax.
``(6) Controlled groups.--Rules similar to rules of section
5051(a)(5) shall apply for purposes of this subsection.
``SEC. 5902. DEFINITIONS.
``(a) Definitions Related to Cannabis Products.--For purposes of
this subtitle--
``(1) Cannabis; cannabis product.--The terms `cannabis' and
`cannabis product' have the same meaning given such terms under
subsection (tt) of section 201 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321).
``(2) Cannabis flower.--The term `cannabis flower' means
any cannabis plant product consisting of the flower of the
plant Cannabis sativa L., or any other part of such plant with
significant concentrations of tetrahydrocannabinol as
designated by the Secretary.
``(3) Cannabis plant product.--The term `cannabis plant
product' means any part of the plant Cannabis sativa L. which--
``(A) is a cannabis product, and
``(B) does not contain any cannabis that has been
processed, extracted, or concentrated (other than
harvesting, drying, curing, or trimming).
``(4) THC product.--The term `THC product' means any
cannabis product other than a cannabis plant product.
``(5) Tetrahydrocannabinol.--The term
`tetrahydrocannabinol' means total tetrahydrocannabinol
equivalent (as defined in paragraph (1)(B) of section 297A of
the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o)).
``(b) Definitions Related to Cannabis Enterprises.--For purposes of
this chapter--
``(1) Cannabis enterprise.--The term `cannabis enterprise'
means a producer, importer, or export warehouse proprietor.
``(2) Producer.--
``(A) In general.--The term `producer' means any
person who plants, cultivates, harvests, grows,
manufactures, produces, compounds, converts, processes,
prepares, or packages any cannabis product.
``(B) Personal use exception.--Subject to such
regulations as the Secretary shall prescribe, 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, provided--
``(i) such individual is solely involved in
the planting, cultivation, and growing of such
cannabis,
``(ii) the planting, cultivation, and
growing of such cannabis occurs only in such
individual's dwelling house, or in any shed,
yard, or inclosure connected with such
individual's dwelling house, and
``(iii) the quantity of cannabis products
planted, cultivated, and grown by such
individual does not exceed the personal use
production limitations determined by the
Secretary as are necessary to protect the
public and protect the revenue.
``(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 bonded
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 a bonded 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 which is qualified
under subchapter B 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'
means--
``(A) the transfer of cannabis products from the
premises of a producer (or the transfer of such
products from the bonded premises of a producer to a
non-bonded 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 which occurs in connection with the
removal of such product,
``(B) in the case of any such sale which is
described in section 5903(c), the price determined
under such section, and
``(C) if there is no sale which occurs in
connection with such removal, the price which would be
determined under section 5903(c) if such product were
sold at a price which 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 thereupon be
relieved of their liability for such tax, and
``(ii) in the case of cannabis products
which are released in bond from customs custody
for transfer to the bonded 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) Returned to bond.--All provisions of this
chapter applicable to cannabis products in bond shall
be applicable to such articles returned to bond upon
withdrawal from the market or returned to bond 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
bonded 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 the filing of
such additional bonds, and 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,
insofar 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 under
bond 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 which 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 which 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 which 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 which 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 filed the bond and
obtained the authorization required under this chapter,
tax shall be due and payable immediately upon
production.
``(3) Taxpayers liable for taxes of not more than
$100,000.--
``(A) In general.--
``(i) More than $10,000 and not more than
$100,000 in taxes.--Except as provided in
clause (ii), in the case of any taxpayer who
reasonably expects to be liable for not more
than $100,000 in taxes imposed with respect to
cannabis products under sections 5901 and 7652
for the calendar year and who was liable for
not more than $100,000 in such taxes in the
preceding calendar year, the last day for the
payment of tax on withdrawals, removals, and
entries (and articles brought into the United
States from Puerto Rico) shall be the 14th day
after the last day of the calendar quarter
during which the action giving rise to the
imposition of such tax occurs.
``(ii) Not more than $10,000 in taxes.--In
the case of any taxpayer who reasonably expects
to be liable for not more than $10,000 in taxes
imposed with respect to cannabis products under
sections 5901 and 7652 for the calendar year
and who was liable for not more than $10,000 in
such taxes in the preceding calendar year, the
last day for the payment of tax on withdrawals,
removals, and entries (and articles brought
into the United States from Puerto Rico) shall
be the 14th day after the last day of the
calendar year.
``(B) No application after limit exceeded.--
``(i) Exceeds $100,000 limit.--Subparagraph
(A)(i) shall not apply to any taxpayer for any
portion of the calendar year following the
first date on which the aggregate amount of tax
due under sections 5901 and 7652 from such
taxpayer during such calendar year exceeds
$100,000, and any tax under such sections which
has not been paid on such date shall be due on
the 14th day after the last day of the
semimonthly period in which such date occurs.
``(ii) Exceeds $10,000 limit.--Subparagraph
(A)(ii) shall not apply to any taxpayer for any
portion of the calendar year following the
first date on which the aggregate amount of tax
due under sections 5901 and 7652 from such
taxpayer during such calendar year exceeds
$10,000, and any tax under such sections which
has not been paid on such date shall be due on
the 14th day after the last day of the calendar
quarter in which such date occurs.
``(C) Calendar quarter.--For purposes of this
paragraph, the term `calendar quarter' has the same
meaning given such term under section 5061(d)(4)(C).
``(4) 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 $5,000,000 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 $5,000,000 amount specified in
the preceding sentence.
``(c) Determination 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--
``(i) computed on the price for which such
articles are sold, in the ordinary course of
trade, by producers thereof, as determined by
the Secretary, and
``(ii) imposed on either person involved in
such sale, 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 which
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 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, but 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 be excluded from the price only if the amount thereof is
established to the satisfaction of the Secretary in accordance
with regulations.
``(3) Determination of applicable equivalent amounts.--
Paragraphs (1) and (2) shall apply for purposes of section
5901(c) only to the extent that the Secretary determines
appropriate.
``(d) Partial Payments and Installment Accounts.--
``(1) Partial payments.--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,
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.
``(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 which 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 which 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.
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; TRANSFERS IN BOND.
``(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
bonded 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) in any drug containing cannabis which is in
compliance with Federal and State law, or
``(4) 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.
``(b) Cannabis Products Transferred or Removed in Bond From
Domestic Factories and Export Warehouses.--
``(1) In general.--Subject to such regulations and under
such bonds as the Secretary shall prescribe, a producer or
export warehouse proprietor may transfer cannabis products,
without payment of tax, to the bonded premises of another
producer or export warehouse proprietor, or remove such
articles, without payment of tax, for shipment to a foreign
country 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 in Bond 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 and under such bond
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 Cannabis Administration and Opportunity 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 and under such bond 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 from internal revenue bond.
``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 cannabis enterprise on proof satisfactory to
the Secretary that the claimant cannabis enterprise 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 in bond.--
``(A) Extent of loss allowance.--No tax shall be
collected in respect of cannabis products lost or
destroyed while in bond, 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 the
cannabis production facility, 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, 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 bonded 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 in bond 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 and upon the filing of such bond as
the Secretary shall prescribe.
``SEC. 5906. DRAWBACK ON TAX FOR CERTAIN USES.
``(a) Eligibility.--Any person using cannabis on which the tax
under this subchapter has been determined, in the manufacture or
production of--
``(1) a drug containing cannabis which is in compliance
with Federal and State law, or
``(2) extracts with a tetrahydrocannabinol concentration of
not more than the allowable tetrahydrocannabinol equivalent
amount as described in paragraph (1)(C) of section 297A of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1639o),
shall be eligible for drawback at the time when such cannabis is used
in the manufacture of such products as provided for in this section.
``(b) Registration and Regulation.--Every person claiming drawback
under this section shall--
``(1) register annually with the Secretary,
``(2) keep such books and records as may be necessary to
establish the fact that cannabis received by such person and on
which the tax has been determined were used in a manner
described in subsection (a), and
``(3) be subject to such rules and regulations in relation
thereto as the Secretary shall prescribe to secure the Treasury
against frauds.
``(c) Investigation of Claims.--For the purpose of ascertaining the
correctness of any claim filed under this section, the Secretary is
authorized to--
``(1) examine any books, papers, records, or memoranda
bearing upon the matters required to be alleged in the claim,
``(2) require the attendance of the person filing the claim
or of any officer or employee of such person or the attendance
of any other person having knowledge in the premises, and
``(3) take testimony with reference to any matter covered
by the claim and to administer oaths to any person giving such
testimony.
``(d) Drawback.--
``(1) Rate of drawback.--In the case of cannabis on which
the tax under this subchapter has been paid or determined, and
which has been used as provided in this section, a drawback
shall be allowed at a rate equal to 90 percent of the amount of
such tax which has been paid or determined.
``(2) Claims.--
``(A) In general.--Subject to subparagraph (B),
such drawback shall be due and payable quarterly upon
filing of a proper claim with the Secretary.
``(B) Exception.--
``(i) Monthly basis.--In the case of any
person entitled to such drawback who elects in
writing to file monthly claims therefor, such
drawback shall be due and payable monthly upon
filing of a proper claim with the Secretary.
``(ii) Bond requirement.--The Secretary may
require persons electing to file monthly
drawback claims under this subparagraph to file
with the Secretary a bond or other security in
such amount and with such conditions as the
Secretary shall by regulations prescribe.
``(iii) Revocation.--Any election under
clause (i) may be revoked on filing of notice
thereof with the Secretary.
``(C) Additional requirement.--No claim under this
section shall be allowed unless filed with the
Secretary within the 6 months next succeeding the
quarter in which the cannabis covered by the claim was
used as provided in this section.
``(3) Allowance of drawback even where certain requirements
not met.--
``(A) In general.--No claim for drawback under this
subsection shall be denied in the case of a failure to
comply with any requirement imposed under this section
or any rule or regulation issued thereunder upon the
claimant's establishing to the satisfaction of the
Secretary that cannabis on which the tax has been paid
or determined was in fact used in a manner described in
subsection (a).
``(B) Penalty.--
``(i) In general.--In the case of a failure
to comply with any requirement imposed under
this section or any rule or regulation issued
thereunder, the claimant shall be liable for a
penalty of $1,000 for each failure to comply
unless it is shown that the failure to comply
was due to reasonable cause.
``(ii) Penalty may not exceed amount of
claim.--The aggregate amount of the penalties
imposed under clause (i) for failures described
in subparagraph (A) in respect of any claim
shall not exceed the amount of such claim
(determined without regard to clause (i)).
``(C) Penalty treated as tax.--The penalty imposed
by subparagraph (B) shall be assessed, collected, and
paid in the same manner as taxes, as provided in
section 6665(a).
``Subchapter B--Authorization and Bond Requirements
``Sec. 5911. Establishment and bond.
``Sec. 5912. Application.
``Sec. 5913. Cannabis production facility.
``SEC. 5911. ESTABLISHMENT AND BOND.
``(a) Prohibition on Production Outside of Bonded Cannabis
Production Facility.--
``(1) In general.--Except as authorized by the Secretary or
on the bonded premises of a cannabis production facility duly
authorized to produce cannabis products according to law, no
cannabis product may be planted, cultivated, harvested, grown,
manufactured, produced, compounded, converted, processed,
prepared, or packaged in any building or on any premises.
``(2) Authorized producers only.--Any person establishing a
cannabis production facility shall, prior to commencing
operations--
``(A) make application to the Secretary pursuant to
section 5912,
``(B) file the bond required under subsection (b),
and
``(C) receive authorization from the Secretary to
operate.
``(3) Personal use exception.--This subsection shall not
apply with respect the activities of an individual who is not
treated as a producer by reason of section 5902(b)(2)(B).
``(b) Bond.--
``(1) When required.--Every person, before commencing
business as a producer or an export warehouse proprietor, shall
file such bond, conditioned upon compliance with this chapter
and regulations issued thereunder, in such form, amount, and
manner as the Secretary shall by regulation prescribe. A new or
additional bond may be required whenever the Secretary
considers such action necessary for the protection of the
revenue.
``(2) Approval or disapproval.--No person shall engage in
such business until he receives notice of approval of such
bond. A bond may be disapproved, upon notice to the principal
on the bond, if the Secretary determines that the bond is not
adequate to protect the revenue.
``(3) Cancellation.--Any bond filed hereunder may be
canceled, upon notice to the principal on the bond, whenever
the Secretary determines that the bond no longer adequately
protects the revenue.
``(4) Removal of bond requirements.--
``(A) In general.--During any period to which
subparagraph (A) of section 5903(b)(3) applies to a
taxpayer (determined after application of subparagraph
(B) thereof), such taxpayer shall not be required to
furnish any bond with respect to engaging in any
business as a producer or an export warehouse
proprietor.
``(B) Satisfaction of bond requirements.--Any
taxpayer for any period described in subparagraph (A)
shall be treated as if sufficient bond has been
furnished for purposes of engaging in such business for
purposes of any requirements relating to bonds under
this chapter.
``SEC. 5912. APPLICATION.
``The application required pursuant to this section shall disclose,
as regulations issued by the Secretary shall provide, such information
as may be necessary to enable the Secretary to determine the location
and extent of the premises, the type of operations to be conducted on
such premises, and whether the operations will be in conformity with
law and regulations, consistent with the requirements under section 302
of the Federal Alcohol Administration Act.
``SEC. 5913. CANNABIS PRODUCTION FACILITY.
``A cannabis production facility, including noncontiguous portions
thereof, shall be so located, constructed, and equipped, as to afford
adequate protection to the revenue, as regulations prescribed by the
Secretary may provide.
``Subchapter C--Operations
``Sec. 5921. Inventories, reports, and records.
``Sec. 5922. Packaging and labeling.
``Sec. 5923. Purchase, receipt, possession, or sale of cannabis
products after removal.
``Sec. 5924. Restrictions relating to marks, labels, notices, and
packages.
``Sec. 5925. Restriction on importation of previously exported cannabis
products.
``SEC. 5921. INVENTORIES, REPORTS, AND RECORDS.
``Every cannabis enterprise shall--
``(1) make a true and accurate inventory at the time of
commencing business, at the time of concluding business, and at
such other times, in such manner and form, and to include such
items, as the Secretary shall by regulation prescribe, with
such inventories to be subject to verification by any internal
revenue officer,
``(2) make reports containing such information, in such
form, at such times, and for such periods as the Secretary
shall by regulation prescribe, and
``(3) keep such records in such manner as the Secretary
shall by regulation prescribe, with such records to be
available for inspection by any internal revenue officer during
business hours.
``SEC. 5922. 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.
``(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 cannabis products.
``(d) Indecent or Immoral Material Prohibited.--No indecent or
immoral picture, print, or representation shall be contained in,
attached to, or stamped, marked, written, or printed on any package of
cannabis products.
``(e) 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 bonded premises of another
producer or export warehouse proprietor or released in bond
from customs custody for delivery to a producer.
``SEC. 5923. 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) which, 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 which are not put up
in packages as required under section 5922 or which 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
which are not put up in packages as required under section 5922
or which 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. 5924. 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. 5925. 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 5931, 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 D--Penalties
``Sec. 5931. Civil penalties.
``Sec. 5932. Criminal penalties.
``SEC. 5931. 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.--
``(1) Every person who sells, relands, or receives within
the jurisdiction of the United States any cannabis products
which have been labeled or shipped for exportation under this
chapter,
``(2) every person who sells or receives such relanded
cannabis products, and
``(3) every person who 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.
``SEC. 5932. CRIMINAL PENALTIES.
``(a) Fraudulent Offenses.--Whoever, with intent to defraud the
United States--
``(1) engages in business as a cannabis enterprise without
filing the application and obtaining the authorization 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) which, 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.
``(b) Liability To Tax.--Any person who possesses cannabis products
in violation of subsection (a) shall be liable for a tax equal to the
tax on such articles.''.
(b) Establishment of Trust Fund.--Subchapter A of chapter 98 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 9512. OPPORTUNITY TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Opportunity Trust
Fund' (referred to in this section as the `Trust Fund'), consisting of
such amounts as may be appropriated or credited to such fund as
provided in this section or section 9602(b).
``(b) Transfers to Trust Fund.--There are hereby appropriated to
the Trust Fund amounts equivalent to the net revenues received in the
Treasury from the taxes imposed under subchapter A of chapter 56.
``(c) Transfers to General Fund.--The Secretary shall pay from time
to time from the Trust Fund into the general fund of the Treasury
amounts equivalent to the amounts appropriated under the Cannabis
Administration and Opportunity Act.''.
(c) 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--
(A) the number of persons operating cannabis
enterprises at each level of such industry,
(B) the volume of sales,
(C) the amount of tax collected each year,
(D) the areas of evasion, and
(E) the impact of disparate State taxes on
diversion and smuggling of cannabis products, and
(2) submit to Congress recommendations to improve the
regulation of the industry and the administration of the
related tax.
(d) 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 which the Secretary anticipates using to
determine the applicable rate per ounce and the applicable rate per
gram which will apply for such calendar year under section 5901(c)(2)
of such Code.
(e) Drawback on Tax for Distilled Spirits Used in Production of
Cannabis or Hemp.--Section 5111 of the Internal Revenue Code of 1986 is
amended by striking ``or perfume'' and inserting ``perfume, cannabis
products, or hemp-derived products''.
(f) Interest of Internal Revenue Officer or Employee in Production
of Cannabis Products.--Section 7214(b) of the Internal Revenue Code of
1986 is amended--
(1) in the heading, by striking ``Tobacco or Liquor
Production'' and inserting ``Production of Tobacco, Liquor, or
Cannabis Products'', and
(2) by striking ``or cigarettes'' and inserting
``cigarettes, or cannabis products (as defined in section
5902(a)(1))''.
(g) Papers, Tubes, and Wrappers.--Section 5702 of the Internal
Revenue Code of 1986 is amended--
(1) in subsection (e)--
(A) by inserting ``or a cannabis product'' after
``tobacco'', and
(B) by inserting ``(including for use as a cannabis
cigarette wrapper)'' after ``cigarette wrapper'',
(2) in subsection (f), by inserting ``(including for use in
making cannabis cigarettes)'' after ``making cigarettes'', and
(3) in subsection (o), by inserting ``(including for use in
making cannabis cigarettes)'' after ``wrapper thereof''.
(h) 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 heading of subsection (a) of section 7608 of such
Code is amended by inserting ``Cannabis Products,'' after
``Tobacco,''.
(3) The table of chapters for subtitle E of such Code is
amended by adding at the end the following new item:
``Chapter 56. Cannabis Products''.
(4) The table of sections for subchapter A of chapter 98 of
such Code is amended by adding at the end the following new
item:
``Sec. 9512. Opportunity Trust Fund.''.
(i) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
removals, and applications 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) Other amendments.--The amendments made by subsections
(b), (c), (d), (f), (g), and (h) shall take effect on the date
of the enactment of this Act.
TITLE V--PUBLIC HEALTH, CANNABIS ADMINISTRATION, AND TRADE PRACTICES
Subtitle A--Public Health
SEC. 501. FDA REGULATION OF CANNABIS.
(a) In General.--The Federal Food, Drug, and Cosmetic Act (21
U.S.C. 301 et seq.) is amended by adding at the end the following:
``CHAPTER XI--CANNABIS PRODUCTS
``SEC. 1101. CENTER FOR CANNABIS PRODUCTS.
``Not later than 90 days after the date of enactment of the
`Cannabis Administration and Opportunity Act', the Secretary shall
establish within the Food and Drug Administration the Center for
Cannabis Products, which shall report to the Commissioner of Food and
Drugs in the same manner as the other agency centers within the Food
and Drug Administration. The Center shall be responsible for the
implementation of this chapter and related matters assigned by the
Commissioner.
``SEC. 1102. ADULTERATED CANNABIS PRODUCTS.
``(a) In General.--A cannabis product shall be deemed to be
adulterated if--
``(1) it consists in whole or in part of any filthy,
putrid, or decomposed substance, or is otherwise contaminated
by any added poisonous or added deleterious substance that may
render the product injurious to health;
``(2) it has been manufactured, prepared, processed,
packed, or held in insanitary conditions whereby it may have
been contaminated with filth, or whereby it may have been
rendered injurious to health;
``(3) it bears or contains any poisonous or deleterious
substance that may render it injurious to health;
``(4) its container is composed, in whole or in part, of
any poisonous or deleterious substance that may render the
contents injurious to health;
``(5) it bears or contains an unsafe color additive that is
unsafe within the meaning of section 721(a); or
``(6) the methods used in, or the facilities or controls
used for, its manufacture, preparing, processing, packing, or
storage are not in conformity with applicable requirements
under section 1105(c).
``(b) Exceptions to Certain Food Requirements for Foods Containing
Cannabis.--Provided that an article that is a food (as defined in
section 201(f)) and that is also a cannabis product (as defined in
section 201(tt)(2)) otherwise complies with all applicable requirements
for food under chapter IV and all applicable requirements for cannabis
products under this chapter, such article shall not be deemed--
``(1) adulterated under section 402(a)(2)(C)(i) solely on
account of constituents made or derived from cannabis; or
``(2) a food to which has been added a drug for which
substantial clinical investigations have been instituted and
for which the existence of such investigations has been made
public for purposes of section 301(ll) solely on account of
constituents made or derived from cannabis.
``SEC. 1103. MISBRANDED CANNABIS PRODUCTS.
``A cannabis product shall be deemed to be misbranded--
``(1) if its labeling or advertising is false or misleading
in any particular;
``(2) unless it bears a label containing--
``(A) a prominent statement that the product
contains cannabis;
``(B) the name and place of business of its
manufacturer, packer, or distributor;
``(C) an accurate statement of the quantity of its
contents in terms of weight, measure, or numerical
count;
``(D) a statement of its form as specified in
regulations promulgated pursuant to section 1105(a);
``(E) the amount of tetrahydrocannabinol in the
product, and if the product is packaged and labeled in
such a way as to suggest more than one serving, dose,
or the equivalent, the amount of tetrahydrocannabinol
in such serving, dose, or the equivalent;
``(F) adequate directions for use, if deemed
necessary for the protection of the public health in
regulations promulgated pursuant to section 1105(a);
``(G) adequate directions against use by children,
if deemed necessary for the protection of the public
health in regulations promulgated pursuant to section
1105(a); and
``(H) such other information as the Secretary
determines, in regulations promulgated pursuant to
section 1105(a), to be necessary for the protection of
the public health;
``(3) if its label or labeling bears a statement describing
the role of a cannabis constituent intended to affect the
structure or any function of the body of humans or other
animals, unless--
``(A) there is substantiation that such statement
is truthful and not misleading; and
``(B) the statement contains, prominently displayed
and in boldface type, the following: `This statement
has not been evaluated by the Food and Drug
Administration. This product is not intended to
diagnose, treat, cure, or prevent any disease.';
``(4) if any word, statement, or other information required
by or under authority of this Act to appear on the label or
labeling is not prominently placed thereon with such
conspicuousness (as compared with other words, statements,
designs, or devices, in the labeling) and in such terms as to
render it likely to be read and understood by the ordinary
individual under customary conditions of purchase and use;
``(5) if it purports to be, or is represented as, a
cannabis product which is subject to a cannabis product
standard established under section 1106 unless such cannabis
product is in all respects in conformity with such standard;
``(6) if its sale, distribution, or label or labeling is
not in conformity with applicable requirements under
subsections (a) and (b) of section 1105;
``(7) if it was manufactured, prepared, propagated,
compounded, or processed in an establishment not duly
registered under section 1104 or if it was not included in a
list required by section 1104; or
``(8) if it is intended for consumption or application by
an individual under 21 years of age.
``SEC. 1104. ANNUAL REGISTRATION.
``(a) Registration by Owners and Operators.--On or before December
31 of each year, every person who owns or operates any establishment in
any State engaged in the manufacture, preparation, compounding, or
processing of a cannabis product shall register with the Secretary the
name, places of business, and all such establishments of that person.
``(b) Registration by New Owners and Operators.--Every person upon
first engaging in the manufacture, preparation, compounding, or
processing of a cannabis product in any establishment owned or operated
in any State by that person shall immediately register with the
Secretary that person's name, place of business, and such
establishment.
``(c) Registration of Added Establishments.--Every person required
to register under subsection (a) or (b) shall immediately register with
the Secretary any additional establishment which that person owns or
operates in the United States and in which that person begins the
manufacture, preparation, compounding, or processing of a cannabis
product.
``(d) Uniform Product Identification System.--The Secretary may by
regulation prescribe a uniform system for the identification of
cannabis products and may require that persons who are required to list
such cannabis products under subsection (g) shall list such cannabis
products in accordance with such system.
``(e) Public Access to Registration Information.--The Secretary
shall make available for inspection any registration filed under this
section.
``(f) Registration by Foreign Establishments.--Any establishment
within a foreign country engaged in the manufacture, preparation,
compounding, or processing of a cannabis product that is imported or
offered for import into the United States, shall register under
subsection (a), (b), or (c), as applicable, and shall include with the
registration the name of the United States agent for the establishment.
``(g) Registration Information.--
``(1) Product list.--
``(A) In general.--Every person who registers with
the Secretary under subsection (a), (b), or (c) shall,
at the time of registration under such subsection, file
with the Secretary--
``(i) a list of all cannabis products which
are being manufactured, prepared, compounded,
or processed by that person for commercial
distribution and which have not been included
in any list of cannabis products filed by that
person with the Secretary under this paragraph
or paragraph (2) before such time of
registration; and
``(ii) such other information as the
Secretary, in consultation with the Secretary
of the Treasury and the Attorney General, may
require, by regulation, to carry out the
purposes of the Cannabis Administration and
Opportunity Act, including the amendments made
by such Act, including chapter 56 of subtitle E
of the Internal Revenue Code of 1986.
``(B) Form and manner of list.--The list under
subparagraph (A)(i) shall be prepared in such form and
manner as the Secretary may prescribe and shall be
accompanied by a copy of all consumer information and
other labeling for such cannabis product, a
representative sampling of advertisements for such
cannabis product, and, upon request by the Secretary, a
copy of all advertisements for a particular cannabis
product.
``(2) Report of any change in product list.--Each person
who registers with the Secretary under this section shall
report to the Secretary as follows:
``(A) Prior to the introduction into commercial
distribution of a cannabis product that has not been
included in any list previously filed by the
registrant, a list containing such cannabis product.
``(B) A notice of discontinuance of the
manufacture, preparation, compounding, or processing
for commercial distribution of a cannabis product
included in a list filed under subparagraph (A) or
paragraph (1), and the date of such discontinuance.
``(C) A notice of resumption of the manufacture,
preparation, compounding, or processing for commercial
distribution of the cannabis product with respect to
which a notice of discontinuance was reported under
subparagraph (B).
``(D) A list of each cannabis product included in a
notice filed under subparagraph (C) prior to the
resumption of the introduction into commercial
distribution of such cannabis product.
``(3) Publication.--The Secretary shall publish on the
website of the Food and Drug Administration every registration
and list filed pursuant to this section and the information
accompanying every list not later than 10 days after the
applicable date of filing.
``(4) Department of the treasury access.--The Secretary
shall establish a format and procedure for appropriate
Department of the Treasury officials to access the information
received by the Secretary under this subsection, in a prompt
and secure manner.
``SEC. 1105. GENERAL PROVISIONS FOR CONTROL OF CANNABIS PRODUCTS.
``(a) Restrictions on Sale and Distribution.--
``(1) Remote sales.--Not later than 2 years after the date
of enactment of the Cannabis Administration and Opportunity
Act, the Secretary shall propose, and not later than 3 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.
``(2) Preventing use of cannabis products in minors.--The
Secretary shall, by regulation, impose such restrictions on
advertising, promotion, and marketing of cannabis products as
the Secretary determines necessary and appropriate to prevent
the consumption or application of cannabis products by
individuals under 21 years of age. Such regulations shall
prohibit the advertising, promotion, and marketing of cannabis
products, whether directly or indirectly, to individuals under
21 years of age, and any other action that has the primary
purpose of initiating or increasing the use of cannabis
products in such individuals.
``(3) Other regulations.--In addition to the restrictions
under paragraphs (1) and (2), the Secretary may, by regulation,
impose other restrictions on the sale and distribution of
cannabis products, including restrictions on the access to, and
the advertising and promotion of, the cannabis product, if the
Secretary determines that such regulation would be appropriate
for the protection of the public health.
``(4) Good faith consultation with indian tribes.--In
issuing regulations under paragraphs (1), (2), and (3), the
Secretary shall conduct good faith, meaningful, and timely
consultations with Indian Tribes (as defined in section 3 of
the Cannabis Administration and Opportunity Act).
``(b) Labeling Statements.--The label and labeling of a cannabis
product shall bear such appropriate statements of the restrictions
required by a regulation under subsection (a) as the Secretary may in
such regulation prescribe.
``(c) Good Manufacturing Practice Requirements.--The Secretary
shall issue regulations requiring that the methods used in, and the
facilities and controls used for, the manufacture, preparing,
processing, packing, and holding of a cannabis product conform to
current good manufacturing practice, including testing for pesticide
chemical residues regardless of whether a tolerance for such chemical
residues has been established.
``SEC. 1106. CANNABIS PRODUCT STANDARDS.
``(a) In General.--The Secretary shall, by regulation, adopt
cannabis product standards that are appropriate for protection of the
public health.
``(b) Content of Standards.--A cannabis product standard
established under this section shall include provisions--
``(1) on the ingredients of the cannabis product,
including, where appropriate--
``(A) cannabinoid yields of the product, which may
consider or address, as appropriate, different types of
cannabinoids and the interaction between the
constituents of the product;
``(B) provisions respecting the construction,
components, ingredients, additives, constituents,
including smoke constituents, and properties of the
cannabis product, which may consider, as appropriate,
the interaction between constituents and components of
the cannabis product; and
``(C) provisions for the reduction or elimination
of harmful constituents or components of the product,
including smoke constituents;
``(2) for the testing of the cannabis product;
``(3) requiring that the results of testing the cannabis
product show that the cannabis product is in conformity with
applicable standards;
``(4) for the measurement of the characteristics of the
cannabis product, where appropriate;
``(5) requiring that the sale and distribution of the
cannabis product be restricted but only to the extent that the
sale and distribution of a cannabis product may be restricted
under a regulation under this Act;
``(6) where appropriate, requiring the use and prescribing
the form and content of labeling for the proper use of the
cannabis product and any potential adverse effects of the
product; and
``(7) requiring cannabis products containing foreign-grown
cannabis to meet the same standards applicable to cannabis
products containing domestically grown cannabis.
``(c) Periodic Reevaluation of Standards.--The Secretary shall
provide for periodic evaluation of cannabis product standards
established under this section to determine whether such standards
should be changed to reflect new medical, scientific, or other
technological data.
``SEC. 1107. RECALL AUTHORITY.
``(a) In General.--If the Secretary finds that there is a
reasonable probability that a cannabis product would cause serious,
adverse health consequences or death, the Secretary shall issue an
order requiring the appropriate person (including the manufacturers,
importers, distributors, or retailers of the cannabis product) to
immediately cease distribution of such cannabis product. The order
shall provide the person subject to the order with an opportunity to
appear and introduce testimony, to be held not later than 20 days after
the date of the issuance of the order, on the actions required by the
order and on whether the order should be amended to require a recall of
such cannabis product. If, after providing an opportunity to appear and
introduce testimony, the Secretary determines that inadequate grounds
exist to support the actions required by the order, the Secretary shall
vacate the order.
``(b) Amendment of Order To Require Recall.--
``(1) In general.--If, after providing an opportunity to
appear and introduce testimony under subsection (a), the
Secretary determines that the order should be amended to
include a recall of the cannabis product with respect to which
the order was issued, the Secretary shall, except as provided
in paragraph (2), amend the order to require a recall. The
Secretary shall specify a timetable in which the cannabis
product recall will occur and shall require periodic reports to
the Secretary describing the progress of the recall.
``(2) Notice.--An amended order under paragraph (1)--
``(A) shall not include recall of a cannabis
product from individuals; and
``(B) shall provide for notice to persons subject
to the risks associated with the use of such cannabis
product.
In providing the notice required by subparagraph (B), the
Secretary may use the assistance of retailers and other persons
who distributed such cannabis product. If a significant number
of such persons cannot be identified, the Secretary shall
notify such persons pursuant to section 705(b).
``SEC. 1108. RECORDS AND REPORTS ON CANNABIS PRODUCTS.
``(a) In General.--Every person who is a cannabis product
manufacturer or importer of a cannabis product shall establish and
maintain such records, make such reports, and provide such information,
as the Secretary may by regulation reasonably require to assure that
such cannabis product is not adulterated or misbranded and to otherwise
protect public health.
``(b) Reports of Removals and Corrections.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall by regulation require a cannabis product
manufacturer or importer of a cannabis product to report
promptly to the Secretary any corrective action taken or
removal from the market of a cannabis product undertaken by
such manufacturer or importer if the removal or correction was
undertaken--
``(A) to reduce a risk to health posed by the
cannabis product; or
``(B) to remedy a violation of this chapter caused
by the cannabis product which may present a risk to
health.
A cannabis product manufacturer or importer of a cannabis
product who undertakes a corrective action or removal from the
market of a cannabis product that is not required to be
reported under this subsection shall keep a record of such
correction or removal.
``(2) Exception.--No report of the corrective action or
removal of a cannabis product may be required under paragraph
(1) if a report of the corrective action or removal is required
and has been submitted under subsection (a).
``SEC. 1109. PROHIBITION ON FLAVORED ELECTRONIC CANNABIS PRODUCT
DELIVERY SYSTEM.
``(a) In General.--Any electronic cannabis product delivery system
shall not contain an artificial or natural flavor (other than cannabis)
that is a characterizing flavor, including menthol, mint, mango,
strawberry, grape, orange, clove, cinnamon, pineapple, vanilla,
coconut, licorice, cocoa, chocolate, cherry, or coffee.
``(b) Definition.--For purposes of this section, the term
`electronic cannabis product delivery system' means an electronic
device that delivers a cannabis product via an aerosolized solution to
the user inhaling from the device, and any component, liquid, part, or
accessory of such a device, whether or not sold separately.
``SEC. 1110. PRESERVATION OF STATE, TRIBAL, AND LOCAL AUTHORITY.
``(a) In General.--Nothing in this chapter, or rules promulgated
under this chapter, shall be construed to limit the authority of a
Federal agency (including the Armed Forces), a State or political
subdivision of a State, or the government of an Indian Tribe (as
defined in section 3 of the Cannabis Administration and Opportunity
Act) to enact, adopt, promulgate, and enforce any law, rule,
regulation, or other measure with respect to cannabis products that is
in addition to, or more stringent than, requirements established under
this chapter, including a law, rule, regulation, or other measure
relating to or prohibiting the manufacture, sale, distribution,
possession, exposure to, access to, advertising and promotion of, or
use of cannabis products by individuals of any age, information
reporting to the State or Indian Tribe (as so defined), or measures
relating to fire safety or environmental standards for cannabis
products. No provision of this chapter shall limit or otherwise affect
any State, Tribal, or local taxation of cannabis products.
``(b) Rule of Construction Regarding Product Liability.--No
provision of this chapter relating to a cannabis product shall be
construed to modify or otherwise affect any action or the liability of
any person under the product liability law of any State or Indian Tribe
(as so defined).''.
SEC. 502. AMENDMENTS TO THE FEDERAL FOOD, DRUG, AND COSMETIC ACT.
(a) Definitions.--Section 201 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321) is amended--
(1) in paragraph (g)(1)(C), by striking ``(other than
food)'' and inserting ``(other than food or cannabis
products)'';
(2) in paragraph (ff)(1), by striking ``(other than
tobacco)'' and inserting ``(other than a tobacco product or
cannabis product)'';
(3) in paragraph (rr)(4), by inserting ``cannabis
product,'' after ``medical device''; and
(4) by adding at the end the following:
``(tt)(1)(A) The term `cannabis' means--
``(i) all parts of the plant Cannabis sativa L., whether
growing or not;
``(ii) the seeds thereof;
``(iii) the resin extracted from any part of such plant;
and
``(iv) every compound, manufacture, salt, derivative,
mixture, or preparation of such plant, its seeds or resin.
``(B) The term `cannabis' does not include--
``(i) hemp, as defined in section 297A of the Agricultural
Marketing Act of 1946; or
``(ii) the mature stalks of such plant, fiber produced from
such stalks, oil or cake made from the seeds of such plant, any
other compound, manufacture, salt, derivative, mixture, or
preparation of such mature stalks (except the resin extracted
therefrom), fiber, oil, or cake, or the sterilized seed of such
plant which is incapable of germination.
``(2)(A) The term `cannabis product' means any product made or
derived from cannabis that is intended for consumption or applied to
the body of man or other animals, including any component of such
product.
``(B) A `cannabis product' does not mean an article that is a drug
within the meaning of paragraph (g)(1).
``(3) With respect to cannabis or a cannabis product, the term
`manufacture' includes the planting, cultivation, growing, and
harvesting of cannabis.''.
(b) Prohibited Acts.--Section 301 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 331) is amended--
(1) by inserting ``cannabis product,'' after ``tobacco
product,'' each place it appears in paragraphs (g) and (h);
(2) in paragraph (j), by striking ``or 920(b)'' and
inserting ``920(b), or 1104'';
(3) in paragraph (p)--
(A) by striking ``510 or 905'' and inserting ``510,
905, or 1104'';
(B) by striking ``or 905(j)'' and inserting
``905(j), or 1104(g)''; and
(C) by striking ``or 905(i)(3)'' and inserting ``,
905(i)(3), or 1104(g)(2)'';
(4) in paragraph (q)(2) by inserting ``, cannabis
product,'' after ``device'';
(5) in paragraph (r), by inserting ``cannabis product,''
after ``device,'' each place it appears; and
(6) by adding at the end the following:
``(jjj)(1) The sale or distribution of a cannabis product to any
person younger than 21 years of age.
``(2) The sale or distribution, in any retail single transaction,
of more than 10 ounces of any cannabis product.
``(3) The sale or distribution of an article that is a cannabis
product and that contains alcohol, caffeine, or nicotine.
``(4) The failure of a manufacturer or distributor to notify the
Attorney General and the Secretary of the Treasury of its knowledge of
cannabis products used in illicit trade.
``(kkk)(1) The introduction or delivery for introduction into
commerce of any cannabis product that is adulterated or misbranded.
``(2) The adulteration or misbranding of any cannabis product in
commerce.
``(3) The receipt in commerce of any cannabis product that is
adulterated or misbranded, and the delivery or proffered delivery
thereof for pay or otherwise.
``(4) The alteration, mutilation, destruction, obliteration, or
removal of the whole or any part of the labeling of, or the doing of
any other act with respect to a cannabis product, if such act is done
while such article is held for sale (whether or not the first sale)
after shipment in commerce and results in such article being
adulterated or misbranded.
``(lll) The failure to comply with the requirements of section
524D.''.
(c) Seizure Authorities.--Section 304 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 334) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``cannabis
product,'' after ``drug,''; and
(B) in paragraph (2), by inserting ``or cannabis
product'' after ``tobacco product'';
(2) in subsection (d)(1), by inserting ``cannabis
product,'' after ``tobacco product,''; and
(3) in subsection (g), by striking ``or tobacco product''
each place it appears in paragraphs (1) and (2)(A) and
inserting ``, tobacco product, or cannabis product''.
(d) Factory Inspection.--Section 704 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 374) is amended--
(1) in subsection (a)--
(A) by inserting ``cannabis products,'' after
``tobacco products,'' each place it appears;
(B) by striking ``or tobacco products'' each place
it appears and inserting ``tobacco products, or
cannabis products''; and
(C) by striking ``and tobacco products'' and
inserting ``tobacco products, and cannabis products'';
and
(2) in subsection (b)(1), by inserting ``cannabis
product,'' after ``tobacco product,''.
(e) Publicity.--Section 705(b) of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 375(b)) is amended by inserting ``cannabis
products,'' after ``tobacco products,''.
(f) Presumption.--Section 709 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 379a) is amended by inserting ``cannabis
product,'' after ``tobacco product,''.
(g) Imports and Exports.--Section 801 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 381) is amended--
(1) in subsection (a)--
(A) by inserting ``cannabis products,'' after
``tobacco products,'';
(B) by striking ``or tobacco products'' each place
it appears and inserting ``, tobacco products, or
cannabis products''; and
(C) by striking ``or section 905(h)'' and inserting
``, 905(h), or 1104''; and
(2) in subsection (e), by striking ``tobacco product or''
and inserting ``tobacco product, cannabis product, or''.
SEC. 503. EXPEDITED REVIEW.
Subchapter A of chapter V of the Federal Food, Drug, and Cosmetic
Act (21 U.S.C. 351 et seq.) is amended by adding at the end the
following:
``SEC. 524C. EXPEDITED REVIEW OF CERTAIN DRUGS CONTAINING CANNABIS.
``(a) Establishment of Program.--The Secretary shall establish a
program to expedite the development and review of applications for
drugs containing cannabis that are manufactured by a small business
concerned owned and controlled by socially and economically
disadvantaged individuals or Native entities that operate in the
cannabis industry.
``(b) Request for Designation.--A sponsor of a drug containing
cannabis that is manufactured by a small business concern owned and
controlled by socially and economically disadvantaged individuals or
Native entities that operate in the cannabis industry may request that
the Secretary designate such drug for expedited review under this
section. A request for designation may be made concurrently with, or at
any time after, the submission of an application for the investigation
of the drug under section 505(i) or section 351(a)(3) of the Public
Health Service Act.
``(c) Actions.--The actions to expedite the development and review
of an application designated for expedited review under this section
may include, as appropriate--
``(1) holding meetings with the sponsor and the review team
throughout the development of the drug;
``(2) providing timely advice to, and interactive
communication with, the sponsor regarding the development of
the drug to ensure that the development program to gather the
nonclinical and clinical data necessary for approval is as
efficient as practicable; and
``(3) priority review, as described in the Manual of
Policies and Procedures of the Food and Drug Administration and
goals identified in the letters described in section 101(b) of
the Prescription Drug User Fee Amendments of 2017.
``(d) Expedited Review Guidance.--Not later than 1 year after the
date of enactment of the Cannabis Administration and Opportunity Act,
and after good faith, meaningful, and timely consultation with Native
entities, the Secretary shall issue guidance on the implementation of
this section. Such guidance shall--
``(1) set forth the process by which a person may seek a
designation under subsection (b); and
``(2) identify the criteria the Secretary will use in
evaluating a request for designation under this section.
``(e) Definitions.--In this section:
``(1) Drug containing cannabis.--The term `drug containing
cannabis' means any drug that contains any article made or
derived from cannabis.
``(2) Native entity.--The term `Native entity' means--
``(A) an Indian Tribe (as defined in section 3 of
the Cannabis Administration and Opportunity Act);
``(B) a Native Corporation (as defined in section 3
of the Alaska Native Claims Settlement Act (43 U.S.C.
1602)); and
``(C) a Native Hawaiian-serving entity.
``(3) Native hawaiian-serving entity.--The term `Native
Hawaiian-serving entity' means--
``(A) a Native Hawaiian organization (as defined in
section 6207 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7517));
``(B) the Department of Hawaiian Home Lands; and
``(C) the Office of Hawaiian Affairs.
``(4) Small business concern owned and controlled by
socially and economically disadvantaged individuals.--The term
`small business concern owned and controlled by socially and
economically disadvantaged individuals' has the meaning given
the term in section 8(d)(3)(C) of the Small Business Act.
``SEC. 524D. SECURITY REQUIREMENTS FOR DRUGS CONTAINING CANNABIS.
``(a) In General.--The sponsor of any application under section 505
for a drug containing cannabis shall provide effective controls and
procedures to guard against theft and diversion of such drug, which may
include, if the Secretary determines necessary, a risk evaluation and
mitigation strategy under section 505-1.
``(b) Standards.--The Secretary shall prescribe, by regulation,
standards for controls and procedures for drugs described in subsection
(a).
``(c) Definition.--For purposes of this section, the term `drug
containing cannabis' means any drug that contains any article made or
derived from cannabis.''.
SEC. 504. REGULATION OF CANNABIDIOL.
(a) CBD as a Dietary Supplement.--Section 201(ff)(3)(B) of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(ff)(3)(B)) is
amended, in the matter preceding subclause (i), by inserting ``, except
in the case of cannabidiol derived from hemp (as defined in section
297A of the Agricultural Marketing Act of 1946)'' after ``include''.
(b) Adulteration.--Section 402 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 342) is amended by adding at the end the
following new subsection:
``(j)(1) If it is a dietary supplement that contains cannabidiol,
unless--
``(A) such dietary supplement contains no more than an
amount of cannabidiol per recommended daily serving that the
Secretary may establish (and revise or repeal as appropriate),
subject to paragraph (2), through an interim final rule,
notwithstanding any requirement for notice and comment that may
otherwise apply under section 553 of title 5, United States
Code;
``(B) such dietary supplement is the subject of a
notification submitted to the Secretary in accordance with
section 413(a)(2); and
``(C) the labeling and packaging of such dietary supplement
conforms with any requirements that the Secretary establishes
regarding labeling or packaging of dietary supplements
containing cannabidiol (which may be promulgated (and revised
or repealed as appropriate) by the Secretary through an interim
final rule, notwithstanding any requirement for notice and
comment that may otherwise apply under section 553 of title 5,
United States Code).
``(2)(A) The amount of cannabidiol established in accordance with
paragraph (1)(A)--
``(i) shall be a threshold above which the Secretary may
not accept new dietary ingredient notifications; and
``(ii) shall not be interpreted as a determination that
lower amounts of cannabidiol are safe.
``(B) The Secretary shall establish such a threshold based on such
factors as the Secretary determines to be appropriate, which may
include a consideration of whether the review of new dietary ingredient
notifications for products containing higher levels of cannabidiol may
be unduly burdensome.''.
(c) New Dietary Ingredient.--Section 413(a)(1) of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 350b(a)(1)) is amended by inserting
``contains no cannabidiol and'' before ``contains only dietary
ingredients''.
(d) New Prohibited Act.--Section 301 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 331), as amended by section 502(b)(6), is
further amended by adding at the end the following:
``(mmm) The introduction or delivery for introduction into
interstate commerce of any product labeled as a dietary supplement that
fails to meet the definition of a dietary supplement under section
201(ff).''.
(e) New Import Exclusion.--Section 801(a) of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 381(a)) is amended in paragraph (3)
of the third sentence by striking ``section 301(ll)'' and inserting
``paragraph (ll) or (iii) of section 301''.
(f) New Seizure Authorities.--Section 304 of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 334) is amended--
(1) in subsection (a)(1), in the first sentence, by
inserting ``or any article which may not be introduced or
delivered for introduction into interstate commerce under
section 301(iii),'' before ``shall be liable''; and
(2) in subsection (d)(1), in the first sentence, by
inserting ``, or any product otherwise introduced or delivered
for introduction into interstate commerce in violation of
section 301(iii) and condemned under this section,'' after
``under this section''.
(g) CBD as a Food Additive.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Health and Human
Services (referred to in this subsection as the ``Secretary'')
shall issue draft guidance describing criteria by which the
Secretary intends to evaluate the safety of cannabidiol as a
food additive in any food additive petition under section 409
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 348).
The Secretary shall publish final guidance within 180 days of
the close of the public comment period on such draft guidance.
(2) Advisory committee.--Before issuing draft guidance
under paragraph (1), the Secretary shall convene and consult an
advisory committee, which shall include experts qualified in
the subject matter.
SEC. 505. TRANSITION PERIODS.
(a) Transition Period for Cannabis Products.--With respect to a
cannabis product that was marketed in the United States within 30 days
of the date of enactment of this Act pursuant to a State law permitting
the marketing of such product, such product shall not be considered to
be in violation of chapter XI of the Federal Food, Drug, and Cosmetic
Act (as added by section 501) or section 301 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 331), as amended by this title, as
applicable, during the 18-month period following the date of enactment
of this Act.
(b) Submission of Applications for Previously Marketed Drugs
Containing Cannabis.--
(1) Transition period for drugs containing cannabis.--With
respect to a drug containing cannabis that was being marketed
in the United States within 30 days after the date of enactment
of this Act pursuant to a State law permitting cannabis for
medical use, such drug shall not be considered to be in
violation of chapter V or section 301 of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 331; 351 et seq.) during the
3-year period following the date of enactment of this Act.
(2) Submission of applications.--
(A) In general.--As a condition for continuing to
market a drug described in paragraph (1) during the 3-
year period specified in such paragraph, during the 18-
month period beginning on the effective date of this
Act, the manufacturer shall submit a new drug
application under section 505(b) of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 355(b)) for such
drug.
(B) Transition period.--Except as provided in
subparagraph (C), with respect to a drug containing
cannabis for which an application is submitted as
described in subparagraph (A), the manufacturer of such
product may continue to market such drug in the State
described in paragraph (1) during the 3-year period
beginning on the effective date of this Act.
(C) Exception.--If the Secretary of Health and
Human Services issues an order refusing to approve an
application under section 505(d) of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 355(d)) for a drug
that contains cannabis, such drug shall not be eligible
for continued marketing under subparagraph (B).
(3) End of transition period.--Beginning on the date that
is 3 years after the date of enactment of this Act the
Secretary may take enforcement action, as appropriate, for a
drug described in paragraph (1) (including such a drug that is
the subject of a pending application under section 505 of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355)) found to
be in violation of chapter V or section 301 of the Federal
Food, Drug, and Cosmetic Act.
(4) Rule of construction.--Nothing in this subsection shall
be construed to prohibit the marketing of a cannabis product
otherwise in compliance with relevant provisions of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.).
(c) Definition.--For purposes of this section, the term ``drug
containing cannabis'' means any drug that contains any article made or
derived from cannabis.
SEC. 506. AMENDMENT TO THE POISON PREVENTION PACKAGING ACT.
Section 2(2)(B) of the Poison Prevention Packaging Act of 1970 (15
U.S.C. 1471(2)(B)) is amended by striking ``or cosmetic'' and inserting
``cosmetic, or cannabis product,''.
SEC. 507. FUNDING FOR FDA.
In addition to amounts otherwise available, there is appropriated,
out of any funds in the Treasury not otherwise appropriated,
$425,000,000 for each of fiscal years 2025 through 2029 to carry out
this title and the amendments made by this title.
Subtitle B--Federal Cannabis Administration
SEC. 511. FEDERAL CANNABIS ADMINISTRATION.
(a) In General.--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 BUSINESSES WITHOUT CANNABIS PERMIT.
``(a) Import.--It shall be unlawful, except pursuant to a permit
issued under this title by 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.
``(b) 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 cultivating, 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 cultivated, produced, manufactured, packaged, or
warehoused.
``(c) 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.
``(d) Transition Rule.--Subject to section 302(e), in the case of a
person who has filed a complete and accurate application for a permit
under this section within 90 days of the date on which the Secretary
has issued any necessary guidance and forms with respect to such
applications, this section shall not apply to such person during the
period prior to any determination under section 302 as to the
entitlement of such person to such permit, provided that such person is
in compliance with--
``(1) any applicable regulations under this title; and
``(2) payment of any taxes imposed under chapter 56 of the
Internal Revenue Code of 1986.
``SEC. 302. PROCEDURE FOR ISSUANCE OF CANNABIS PERMITS.
``(a) Entitlement to Permit.--
``(1) In general.--The Secretary shall issue a permit for
operations requiring a permit under section 301 unless the
Secretary finds that--
``(A) the applicant (or if the applicant is a
corporation, any of its officers, directors, or
principal stockholders) has been convicted of a
disqualifying offense;
``(B) 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
``(C) the applicant is not likely to maintain such
operations in conformity with Federal law.
``(2) Disqualifying offenses.--
``(A) In general.--For the purposes of paragraph
(1), a disqualifying offense is any felony violation of
any provision of Federal or State criminal law relating
to cannabis or cannabis products (including the
taxation thereof), if the conviction occurred after the
date of enactment of the Cannabis Administration and
Opportunity Act and not later than 3 years before the
date of the application.
``(B) Waiver pursuant to finding of mitigation or
rehabilitation and fitness for occupation.--
Notwithstanding subparagraph (A), an offense shall not
be considered a disqualifying offense if, pursuant to a
submission of waiver request by the applicant to the
Secretary, the Secretary finds (following a review and
recommendation with respect to such waiver request by
the Cannabis Products Advisory Committee established
under section 602 of the Cannabis Administration and
Opportunity Act) that the applicant has established
sufficient mitigation or rehabilitation and fitness to
maintain cannabis operations in compliance with State
and Federal law by providing--
``(i) evidence showing that--
``(I) the applicant has not been
convicted of a crime that occurred
after the date on which the offense
with respect to which the waiver was
requested occurred; and
``(II) the applicant has complied
with all terms and conditions of
probation or parole; or
``(ii) any other evidence of mitigation and
present fitness, including--
``(I) the circumstances relating to
the offense, including mitigating
circumstances or social conditions
surrounding the commission of the
offense;
``(II) the age of the applicant
when the applicant committed the
offense;
``(III) the period of time that has
elapsed since the applicant committed
the offense;
``(IV) additional evidence of
educational, training, or work
activities that the applicant has
participated in, including during any
period of incarceration;
``(V) letters of reference by
persons who have been in contact with
the applicant since the applicant was
released from any correctional
institution; and
``(VI) completion of, or active
participation in, rehabilitative drug
or alcohol treatment.
``(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. 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
which are the basis for the order.
``(c) Form of Application.--
``(1) Generally.--The Secretary shall--
``(A) prescribe the manner and form of applications
for permits under this title (including the facts to be
set forth in the application);
``(B) prescribe the form of such 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.--
``(1) In general.--A permit under this title shall be
conditioned upon--
``(A) compliance with all other Federal laws
relating to production and sale of cannabis, as well as
compliance with all State laws relating to said
activities in the State in which the permit applicant
resides and does business;
``(B) payment to the Secretary of a reasonable
permit fee in an amount determined by the Secretary to
be sufficient over time to offset the cost of
implementing and overseeing all aspects of cannabis
regulation by the Federal Government; and
``(C) compliance with--
``(i) the labor laws described in paragraph
(1) of subsection (j), as determined in
accordance with paragraph (2) of such
subsection; and
``(ii) the reporting requirements of
subsection (j)(3).
``(2) Waiver of permit fee.--Pursuant to regulations
prescribed by the Secretary, the permit fee described in
paragraph (1)(B) shall be waived in the case of an individual
who--
``(A) has had an income below 250 percent of the
Federal Poverty Level for not fewer than 5 of the 10
years preceding the date on which the individual
submits an application for a permit under this title;
and
``(B) is a first-time applicant.
``(e) Revocation, Suspension, and Annulment.--
``(1) Generally.--After due notice and opportunity for
hearing, 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) 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) 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 which are the basis for the order.
``(3) Joint development of enforcement regulations.--The
Secretary, in coordination with the Secretary of Labor and the
National Labor Relations Board, shall, through regulations,
establish criteria for making determinations under paragraph
(1).
``(4) Joint enforcement.--The Secretary of Labor and the
National Labor Relations Board shall provide to the Secretary
any assistance in carrying out this subsection as determined
necessary by the Secretary.
``(5) Certain violations under the national labor relations
act deemed willful.--A violation of the condition under
subsection (d)(1)(C) with respect to compliance with section 8
of the National Labor Relations Act (29 U.S.C. 158) as
described in subsection (j)(1)(C) shall be deemed willful for
purposes of paragraph (1)(A) if the National Labor Relations
Board finds that the permittee has engaged in--
``(A) a discharge in violation of subsection (a) of
such section 8;
``(B) a violation of such section 8 during the
period in which a representation election under such
Act is pending with respect to the employees of the
permittee; or
``(C) a withdrawal of recognition of the recognized
or certified collective-bargaining representative under
such Act with respect to the employees of the permittee
that is in violation of such section 8.
``(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 him 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 his last known address in the
records of the Secretary.
``(g) 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.
``(h) Judicial Review.--
``(1) In general.--A permittee or applicant for a permit
under this title may obtain judicial review under chapter 7 of
title 5, United States Code, of the denial of the application
of that applicant or, in the case of a permittee, the denial of
an application by the transferee of that permittee or the
suspension, revocation, or annulment of a permit with respect
to that permittee.
``(2) Labor law violations.--Notwithstanding paragraph (1),
with respect to a violation of the condition described in
subsection (d)(1)(C), the findings of fact and conclusions of
law by the Secretary, or, pursuant to subsection (e)(4), the
Secretary of Labor or the National Labor Relations Board,
concerning the appropriateness of suspending, revoking, or
annulling a permit as provided in this title, if supported by
substantial evidence on the whole, shall be conclusive.
``(i) 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.
``(j) Labor Laws.--
``(1) In general.--A labor law described in this paragraph
is any of the following:
``(A) Any provision under the Fair Labor Standards
Act of 1938 (29 U.S.C. 201 et seq.), including any
regulations promulgated under such Act.
``(B) Any provision under the Occupational Safety
and Health Act of 1970 (29 U.S.C. 651 et seq.),
including any standard promulgated under section 6 of
such Act (29 U.S.C. 655) or any other regulation
promulgated under such Act, or any standard or
regulation promulgated under an applicable State plan
approved by the Secretary of Labor under section 18 of
such Act (29 U.S.C. 667) that is identical or
equivalent to a standard promulgated under such section
6.
``(C) Section 8 of the National Labor Relations Act
(29 U.S.C. 158), including any regulations promulgated
under such section.
``(2) Findings of labor law violations.--
``(A) In general.--For purposes of subsection
(d)(1)(C)(i), a permittee shall be considered in
violation of a labor law described in paragraph (1) if
any of the following findings are made with respect to
the permittee:
``(i) Fair labor standards act of 1938.--
With respect to a labor law described in
paragraph (1)(A)--
``(I) a finding through an order or
judgment of a Federal or State court
that the permittee has violated any
provision of the Fair Labor Standards
Act of 1938, including any regulation
promulgated under such Act; or
``(II) a finding through a final
order of the Secretary of Labor that
the permittee has violated any
provision of such Act, including such a
regulation.
``(ii) Occupational safety and health act
of 1970.--With respect to a labor law described
in paragraph (1)(B)--
``(I) a finding through an order or
judgment of a Federal or State court
that the permittee has violated any
provision of the Occupational Safety
and Health Act of 1970, including any
standard promulgated under section 6 of
such Act or any other regulation
promulgated under such Act, or any
standard or regulation promulgated
under an applicable State plan approved
by the Secretary of Labor under section
18 of such Act (29 U.S.C. 667) that is
identical or equivalent to a standard
promulgated under such section 6; or
``(II) a finding through a final
order issued by the Occupational Safety
and Health Review Commission, or an
equivalent final decision of any State
agency or administrative body, that the
permittee has committed a violation
described in subclause (I).
``(iii) National labor relations act.--With
respect to a labor law described in paragraph
(1)(C), a finding by the National Labor
Relations Board that the permittee has violated
section 8 of the National Labor Relations Act
(29 U.S.C. 158), including a regulation
promulgated under such section, by committing
an unfair labor practice under such section.
``(B) Exception.--Notwithstanding subparagraph (A),
a permittee shall not be considered in violation of a
labor law described in paragraph (1) if a finding
described in subparagraph (A) with respect to the
permittee is through an order or judgment that has been
reversed, vacated, or rescinded.
``(3) Reporting requirements.--Not later than 30 days after
a finding described in paragraph (2) has been made with respect
to a permittee, the permittee shall notify the Secretary of
such finding in such form and manner as the Secretary, in
coordination with the Secretary of Labor and the National Labor
Relations Board, shall prescribe.
``SEC. 303. DELIVERY OF HEMP INADVERTENTLY EXCEEDING PERMISSIBLE
CONCENTRATION OF DELTA-9 TETRAHYRDROCANNABINOL.
``(a) In General.--The Secretary, in coordination with the
Secretary of Agriculture and the Secretary of Health and Human
Services, shall issue regulations to establish a process for the lawful
delivery of hemp described in subsection (b) to a cannabis enterprise
holding a permit issued under this title and authorized pursuant to
section 5911 of the Internal Revenue Code of 1986.
``(b) Hemp Described.--Hemp referred to in subsection (a) is
Cannabis sativa L. inadvertently produced with a total
tetrahydrocannabinol equivalent concentration of more than the
allowable tetrahydrocannabinol equivalent amount as described in
paragraph (1)(C) of section 297A of the Agricultural Marketing Act of
1946 (7 U.S.C. 1639o)--
``(1) before September 30, 2021, by an institution of
higher education or State department of agriculture that grows
or cultivates industrial hemp under section 7606 of the
Agricultural Act of 2014 (7 U.S.C. 5940); or
``(2) by a producer of hemp under subtitle G of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1639o et seq.).
``SEC. 304. UNFAIR COMPETITION AND UNLAWFUL PRACTICES.
``(a) In General.--It shall be unlawful for any person engaged in
the business of importing cannabis into the United States, or
cultivating, producing, manufacturing, packaging, or warehousing
cannabis, or purchasing cannabis for resale at wholesale, directly or
indirectly or through an affiliate, to do any of the following:
``(1) Exclusive outlet.--To require, by agreement or
otherwise, that any retailer engaged in the sale of cannabis
products, purchase any such products from such person to the
exclusion in whole or in part of cannabis sold or offered for
sale by other persons in interstate or foreign commerce, if
such requirement is made in the course of interstate or foreign
commerce, or if such person engages in such practice to such an
extent as substantially to restrain or prevent transactions in
interstate or foreign commerce in any such products, or if the
direct effect of such requirement is to prevent, deter, hinder,
or restrict other persons from selling or offering for sale any
such products to such retailer in interstate or foreign
commerce.
``(2) Tied house.--To induce through any of the following
means, any retailer, engaged in the sale of cannabis products
to purchase any such products from such person to the exclusion
in whole or in part of cannabis sold or offered for sale by
other persons in interstate or foreign commerce, if such
inducement is made in the course of interstate or foreign
commerce, or if such person engages in the practice of using
such means, or any of them, to such an extent as substantially
to restrain or prevent transactions in interstate or foreign
commerce in any such products, or if the direct effect of such
inducement is to prevent, deter, hinder, or restrict other
persons from selling or offering for sale any such products to
such retailer in interstate or foreign commerce:
``(A) Acquiring or holding (after the expiration of
any existing license) any interest in any license with
respect to the premises of the retailer.
``(B) Acquiring any interest in real or personal
property owned, occupied, or used by the retailer in
the conduct of his business.
``(C) Furnishing, giving, renting, lending, or
selling to the retailer, any equipment, fixtures,
signs, supplies, money, services, or other thing of
value, subject to such exceptions as the Secretary
shall by regulation prescribe, having due regard for
public health, the quantity and value of articles
involved, established trade customs not contrary to the
public interest and the purposes of this subsection.
``(D) Paying or crediting the retailer for any
advertising, display, or distribution service.
``(E) Guaranteeing any loan or the repayment of any
financial obligation of the retailer.
``(F) Extending to the retailer credit for a period
in excess of the credit period usual and customary to
the industry for the particular class of transactions,
as ascertained by the Secretary of the Treasury and
prescribed by regulations by him.
``(G) Requiring the retailer to take and dispose of
a certain quota of any of such products.
``(3) Commercial bribery.--To induce through any of the
following means, any trade buyer engaged in the sale of
cannabis products, to purchase any such products from such
person to the exclusion in whole or in part of cannabis
products sold or offered for sale by other persons in
interstate or foreign commerce, if such inducement is made in
the course of interstate or foreign commerce, or if such person
engages in the practice of using such means, or any of them, to
such an extent as substantially to restrain or prevent
transactions in interstate or foreign commerce in any such
products, or if the direct effect of such inducement is to
prevent, deter, hinder, or restrict other persons from selling
or offering for sale any such products to such trade buyer in
interstate or foreign commerce:
``(A) Commercial bribery.
``(B) Offering or giving any bonus, premium, or
compensation to any officer, or employee, or
representative of the trade buyer.
``(4) Consignment sales.--To sell, offer for sale, or
contract to sell to any trade buyer engaged in the sale of
cannabis products, or for any such trade buyer to purchase,
offer to purchase, or contract to purchase, any such products
on consignment or under conditional sale or with the privilege
of return or on any basis otherwise than a bona fide sale, or
where any part of such transaction involves, directly or
indirectly, the acquisition by such person from the trade buyer
or his agreement to acquire from the trade buyer other cannabis
products, if such sale, purchase, offer, or contract is made in
the course of interstate or foreign commerce, or if such person
or trade buyer engages in such practice to such an extent as
substantially to restrain or prevent transactions in interstate
or foreign commerce in any such products or if the direct
effect of such sale, purchase, offer, or contract is to
prevent, deter, hinder, or restrict other persons from selling
or offering for sale any such products to such trade buyer in
interstate or foreign commerce.
``(5) Labeling.--To sell or ship or deliver for sale or
shipment, or otherwise introduce in interstate or foreign
commerce, or to receive therein, or to remove from customs
custody for consumption, any cannabis product in packages,
unless such products are packaged, and labeled in conformity
with such regulations, to be prescribed by the Secretary, with
respect to packaging, marking, branding, and labeling and size
of container--
``(A) as will prohibit deception of the consumer
with respect to such products or the quantity thereof
and as will prohibit, irrespective of falsity, such
statements relating to manufacturing processes,
analyses, guarantees, and scientific or irrelevant
matters as the Secretary finds to be likely to mislead
the consumer;
``(B) as will provide the consumer with information
described in section 1103 of the Federal Food, Drug,
and Cosmetic Act;
``(C) as will require compliance with section
112(b) of the Cannabis Administration and Opportunity
Act;
``(D) as will prohibit statements on the label that
are disparaging of a competitor's products or are
false, misleading, obscene, or indecent; and
``(E) as will prevent deception of the consumer by
use of a trade or brand name that is the name of any
living individual of public prominence, or existing
private or public organization, or is a name that is in
simulation or is an abbreviation thereof, and as will
prevent the use of a graphic, pictorial, or emblematic
representation of any such individual or organization,
if the use of such name or representation is likely
falsely to lead the consumer to believe that the
product has been indorsed, made, or used by, or
produced for, or under the supervision of, or in
accordance with the specifications of, such individual
or organization.
``(6) Advertising.--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 cannabis, 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, as will--
``(A) 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;
``(B) 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;
``(C) prohibit statements that are disparaging of a
competitor's products or are false, misleading,
obscene, or indecent; and
``(D) prevent statements inconsistent with any
statement on the labeling of the products advertised.
``(b) Removal or Destruction of Label.--It shall be unlawful for
any person to alter, mutilate, destroy, obliterate, or remove any mark,
brand, or label upon cannabis products held for sale in interstate or
foreign commerce or after shipment therein, except as authorized by
Federal law or except pursuant to regulations of the Secretary
authorizing relabeling for purposes of compliance with the requirements
of this subsection or of State law.
``(c) Exceptions.--
``(1) Consignment sales.--Paragraph (4) of subsection (a)
shall not apply to transactions involving solely the bona fide
return of merchandise for ordinary and usual commercial reasons
arising after the merchandise has been sold.
``(2) Labeling.--Paragraph (5) of such subsection shall not
apply to the use of the name of any person engaged in business
as a manufacturer of cannabis products, nor to the use by any
person of a trade or brand name used by him or his predecessor
in interest prior to the date of enactment of the Cannabis
Administration and Opportunity Act.
``(3) Advertising.--Paragraph (6) of such subsection shall
not apply to the publisher of any newspaper, periodical, or
other publication, or radio broadcaster, unless such publisher
or radio broadcaster is engaged in the business of importing
cannabis into the United States, or cultivating, producing,
manufacturing, packaging, or warehousing cannabis, or
purchasing cannabis for resale at wholesale, directly or
indirectly or through an affiliate.
``(4) State law.--With respect to subsection (a)(2),
subparagraphs (A), (B), (C), (E), and (F) of such subsection
shall apply to transactions between a retailer or trade buyer
in any State and a producer, importer, or wholesaler of
cannabis products outside such State only to the extent that
the law of such State imposes similar requirements with respect
to similar transactions between a retailer or trade buyer in
such State and a producer, importer, or wholesaler of cannabis
products in such State, as the case may be.
``(5) Proprietary interest.--Pursuant to regulations or
other guidance promulgated by the Secretary, with respect to
subparagraphs (A) and (B) of subsection (a)(2), rules similar
to the rules of sections 6.27 and 6.33 of title 27, Code of
Federal Regulations (as in effect on the date of enactment of
this title), shall apply.
``SEC. 305. REMEDIES FOR VIOLATIONS.
``(a) Criminal Fine.--
``(1) Generally.--Whoever violates section 301 shall be
fined not more than $1,000.
``(2) Settlement in compromise.--The Secretary may decide
not to refer a violation of such section to the Attorney
General for prosecution but instead to collect a payment from
the violator of no more than $500 for that violation.
``(b) 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. 306. DEFINITIONS.
``In this title--
``(1) the term `cannabis' has the meaning given such term
in section 3 of the Cannabis Administration and Opportunity
Act;
``(2) the term `Secretary' means the Secretary of the
Treasury or the Secretary's delegate; and
``(3) the term `State' includes the District of Columbia,
Puerto Rico, and any territory or possession of the United
States.''.
(b) Appropriations.--In addition to amounts otherwise available,
there is appropriated, out of any funds in the Treasury not otherwise
appropriated, for fiscal year 2025--
(1) $15,000,000 to the Secretary of Labor for carrying out
the activities of the Secretary of Labor under section 302 of
the Federal Alcohol Administration Act, to remain available
until September 30, 2029; and
(2) $10,000,000 to the National Labor Relations Board for
carrying out the activities of the National Labor Relations
Board under such section, to remain available until September
30, 2029.
SEC. 512. INCREASED FUNDING FOR THE ALCOHOL, TOBACCO, AND CANNABIS TAX
AND TRADE BUREAU.
In addition to any other amounts otherwise available to the
Alcohol, Tobacco, and Cannabis Tax and Trade Bureau, there is
appropriated, out of any funds in the Treasury not otherwise
appropriated, $100,000,000 for each of the fiscal years 2025 through
2029 to carry out--
(1) sections 102 and 112 of this Act,
(2) chapter 56 of the Internal Revenue Code of 1986 (as
added by section 401 of this Act),
(3) title III of the Federal Alcohol Administration Act (as
added by section 511 of this Act), and
(4) section 1111 of the Homeland Security Act of 2002 (6
U.S.C. 531).
TITLE VI--WORKPLACE HEALTH AND SAFETY PROVISIONS
SEC. 601. DEFINITIONS.
In this title:
(1) Cannabis industry.--The term ``cannabis industry''
means any operation described in section 301 of the Federal
Alcohol Administration Act, as added by section 511.
(2) Employee; employer.--The terms ``employee'' and
``employer'' have the meanings given such terms in section 3 of
the Occupational Safety and Health Act of 1970 (29 U.S.C. 652).
(3) Employer in the cannabis industry.--The term ``employer
in the cannabis industry'' means an employer engaged in any
operation requiring a permit under section 301 of the Federal
Alcohol Administration Act, as added by section 511.
(4) Person.--The term ``person'' has the meaning given such
term in section 3 of the Occupational Safety and Health Act of
1970 (29 U.S.C. 652).
(5) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(6) Worker in the cannabis industry.--The term ``worker in
the cannabis industry'' means any individual performing work
for remuneration in the cannabis industry.
SEC. 602. FINDING REGARDING EMPLOYERS IN THE CANNABIS INDUSTRY.
Congress finds that employers in the cannabis industry are required
to comply with occupational safety and health standards issued under
section 6 of the Occupational Safety and Health Act of 1970 (29 U.S.C.
655) and other regulations issued under such Act.
SEC. 603. CANNABIS AS A TARGETED TOPIC FOR SUSAN HARWOOD TRAINING GRANT
PROGRAM.
The Secretary shall, in awarding Susan Harwood training grants
under the Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et
seq.) for the 2 fiscal years following the date of enactment of this
Act, designate cannabis as a targeted topic for such grants.
SEC. 604. GUIDANCE ON RECOMMENDED PRACTICES.
(a) In General.--Not later than 60 days after the date of enactment
of this Act, the Assistant Secretary of Labor for Occupational Safety
and Health and the Director of the National Institute for Occupational
Safety and Health of the Department of Health and Human Services shall
jointly issue guidance on recommended practices to protect workers in
the cannabis industry.
(b) Contents.--The guidance required under this section shall--
(1) address the hazards workers in the cannabis industry
face throughout the life cycle of cannabis, including from
cultivation to sale and resale;
(2) provide methods to protect cannabis workers; and
(3) indicate specific occupational safety and health
standards promulgated under section 6 of the Occupational
Safety and Health Act of 1970 (29 U.S.C. 655), and any other
requirements through regulations issued under such Act, that
apply to the cannabis industry, including an indication of any
training requirement that employers in the cannabis industry
are subject to under any occupational safety and health
standard promulgated under such section 6 or under any other
regulations issued under such Act.
SEC. 605. WORKPLACE IMPACT OF CANNABIS LEGALIZATION.
(a) Study.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Director of the National Institute
for Occupational Safety and Health shall conduct research on
the impact of the legalization of recreational cannabis by
States on the workplace, which may include--
(A) barriers for the Director and extramural
partners in conducting occupational safety and health
research with respect to cannabis, including to further
identify potential hazards, characterize exposures, and
evaluate associations between exposures and adverse
health effects;
(B) occupational health and safety training for
workers in the cannabis industry;
(C) the controls and actions taken by employers in
the cannabis industry to protect workers and the
effectiveness of such controls and actions;
(D) efficacy of cannabis for treating occupational
related injuries or illnesses; and
(E) other topics as determined relevant by the
Director.
(2) Collaboration.--In conducting the research under
paragraph (1), the Director of the National Institute for
Occupational Safety and Health may collaborate with the
Occupational Safety and Health Administration, other relevant
Federal departments and agencies, and relevant public and
private stakeholders.
(3) Appropriations.--In addition to amounts otherwise
available, there is appropriated, out of any funds in the
Treasury not otherwise appropriated, $2,000,000 for each of
fiscal years 2025 through 2027 to carry out paragraph (1).
(b) Best Practices.--Not later than 2 years after the date of
enactment of this Act, the Director of the National Institute for
Occupational Safety and Health shall develop a set of recommendations
outlining policies, best practices, and training recommendations for
use by employers that are planning to transition or update workplace
policies related to the use of recreational cannabis.
SEC. 606. GRANTS FOR COMMUNITY-BASED EDUCATION, OUTREACH, AND
ENFORCEMENT WITH RESPECT TO THE RIGHTS OF WORKERS IN THE
CANNABIS INDUSTRY.
(a) Definition of Eligible Entity.--In this section, the term
``eligible entity'' means--
(1) a public or private nonprofit organization with
experience educating workers of their rights; or
(2) a partnership of organizations described in paragraph
(1).
(b) Program Authorized.--The Secretary shall award grants to
eligible entities, on a competitive basis, to enable the eligible
entities to carry out--
(1) one or more activities to--
(A) educate workers in the cannabis industry of
their rights under Federal, State, and local civil
rights, labor, and employment laws, with a focus on
providing such education to such workers who are low-
wage workers;
(B) educate persons hiring workers in the cannabis
industry regarding their obligations under such laws;
or
(C) connect and refer workers in the cannabis
industry to additional services, as appropriate and
available, to assist them in pursuing their rights
under such laws; or
(2) any other activity the Secretary may reasonably
prescribe for the purposes of supporting workers in the
cannabis industry.
(c) Applications.--
(1) In general.--An eligible entity desiring a grant under
this section shall submit an application to the Secretary at
such time, in such manner, and containing such information as
the Secretary may require.
(2) Partnership applications.--In the case of an eligible
entity that is a partnership, the eligible entity may
designate, in the application, a single organization in the
partnership as the lead entity for purposes of receiving and
disbursing funds.
(3) Contents.--An application described in paragraph (1)
shall include--
(A) information on the training and education that
will be provided through the grant to workers in the
cannabis industry and persons hiring workers in the
cannabis industry;
(B) information on any geographic area targeted by
the activities supported through the grant; and
(C) the method by which the eligible entity will
measure the results of the activities supported through
the grant and a method by which the eligible entity
will assess the demographics of the workers served by
such activities.
(d) Duration of Grants.--Each grant awarded under this section
shall be for a period of not more than 3 years.
(e) Amount of Grants.--Each grant awarded under this section shall
be in an amount not to exceed $300,000.
(f) Reporting Requirements.--Each eligible entity receiving a grant
under this section shall, as determined by the Secretary, report to the
Secretary the demographics of the workers served by the grant and the
results of the activities supported by the grant as such demographics
and results are measured by the methods described in the application
submitted by the entity under subsection (c)(3)(C).
(g) Appropriations.--In addition to amounts otherwise available,
there is appropriated, out of any funds in the Treasury not otherwise
appropriated, $15,000,000 for each of fiscal years 2025 through 2029 to
carry out this section.
TITLE VII--BANKING, HOUSING, AND COMMUNITY DEVELOPMENT
SEC. 701. PURPOSES; SENSE OF CONGRESS.
(a) Purposes.--The purposes of this title are--
(1) to reinvest in low- or moderate-income areas and
communities most affected by the war on drugs; and
(2) encourage financial institutions to provide financial
services to small or minority-owned businesses in the
communities described in paragraph (1).
(b) Sense of Congress.--It is the sense of Congress that each
appropriate Federal financial supervisory agency should use its
authority pursuant to section 804 of the Community Reinvestment Act of
1977 (12 U.S.C. 2901) when examining financial institutions to
encourage the institutions to help meet the credit needs of the local
communities in which they are chartered, consistent with the safe and
sound operation of such institutions, including those communities that
are most affected by the war on drugs.
SEC. 702. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY REPORTS.
Section 5318(g) of title 31, United States Code, is amended--
(1) by redesignating paragraph (11) as paragraph (12); and
(2) by inserting after paragraph (10) the following:
``(11) Requirements for cannabis-related legitimate
businesses.--
``(A) Definitions.--In this paragraph:
``(i) Cannabis.--The term `cannabis' has
the meaning given the term in section 3 of the
Cannabis Administration and Opportunity Act.
``(ii) Cannabis-related legitimate
business; cannabis-related service provider.--
The terms `cannabis-related legitimate
business' and `cannabis-related service
provider' have the meanings given the terms in
section 3 of the Small Business Act (15 U.S.C.
632).
``(iii) Financial service.--The term
`financial service'--
``(I) means--
``(aa) a financial product
or service, as defined in
section 1002 of the Consumer
Financial Protection Act of
2010 (12 U.S.C. 5481),
regardless of whether the
customer receiving the product
or service is a consumer or
commercial entity; and
``(bb) a financial product
or service, or any combination
of products and services,
permitted to be provided by--
``(AA) a national
bank or a financial
subsidiary pursuant to
the authority provided
under the paragraph
designated as the
`Seventh' of section
5136 of the Revised
Statutes (12 U.S.C. 24)
or section 5136A of the
Revised Statutes (12
U.S.C. 24a); or
``(BB) a Federal
credit union, pursuant
to the authority
provided under the
Federal Credit Union
Act (12 U.S.C. 1751 et
seq.); and
``(II) includes--
``(aa) the business of
insurance;
``(bb) whether performed
directly or indirectly, the
authorizing, processing,
clearing, settling, billing,
transferring for deposit,
transmitting, delivering,
instructing to be delivered,
reconciling, collecting, or
otherwise effectuating or
facilitating of payments or
funds, if such payments or
funds are made or transferred
by any means, including by the
use of credit cards, debit
cards, other payment cards, or
other access devices, accounts,
original or substitute checks,
or electronic funds transfers;
``(cc) acting as a money
transmitting business that
directly or indirectly makes
use of a depository institution
in connection with effectuating
or facilitating a payment for a
cannabis-related legitimate
business or cannabis-related
service provider in compliance
with section 5330 of title 31,
United States Code, and any
applicable State law; and
``(dd) acting as an armored
car service for processing and
depositing with a depository
institution or a Federal
reserve bank with respect to
any monetary instruments, as
defined in section 1956(c) of
title 18, United States Code.
``(B) Report.--With respect to a financial
institution or any director, officer, employee, or
agent of a financial institution that reports a
suspicious transaction pursuant to this subsection, if
the reason for the report relates to a cannabis-related
legitimate business or cannabis-related service
provider, the report shall comply with appropriate
guidance issued by the Financial Crimes Enforcement
Network. Not later than the end of the 180-day period
beginning on the date of enactment of this paragraph,
the Secretary shall update the February 14, 2014,
guidance titled `BSA Expectations Regarding Marijuana-
Related Businesses' (FIN-2014-G001) or issue new
regulations to ensure that the guidance--
``(i) is consistent with the purpose and
intent of the Cannabis Administration and
Opportunity Act;
``(ii) addresses the deposit and movement
of cash held by cannabis-legitimate business or
cannabis-related service provider as of the
date of enactment of this paragraph; and
``(iii) does not significantly inhibit the
provision of financial services to a cannabis-
related legitimate business or cannabis-related
service provider in the United States.
``(C) Purpose.--Any guidance or regulation required
under this section shall ensure that a financial
institution and any director, employee, officer, or
agent of a financial institution continues to report
suspicious activities related to cannabis-related
legitimate businesses and preserve the ability of the
Financial Crimes Enforcement Network and law
enforcement to prevent and combat illicit activity. The
Financial Crimes Enforcement Network shall promulgate
regulations or issue guidance as necessary on financial
institutions that provide financial services to
cannabis-related legitimate businesses, cannabis-
related service providers, or employees, owners, or
operators, regarding obligations related to anti-money
laundering and under this subchapter, including
addressing the filing of suspicious activity reports
consistent with this section, customer due diligence
requirements, indirect relationships with cannabis-
related legitimate businesses, and verification and
documentation requirements for financial institutions
intending to handle funds from cannabis-related
legitimate businesses to ensure such funds are clearly
linked with law, other lawful activity, and
regulations. The Secretary shall ensure that such
regulations are consistent with the purpose and intent
of the Cannabis Administration and Opportunity Act
while ensuring the Financial Crimes Enforcement Network
has sufficient resources to prevent and combat illicit
activity.''.
SEC. 703. GUIDANCE AND EXAMINATION PROCEDURES.
Not later than 180 days after the date of enactment of this Act and
consistent with the updated Financial Crimes Enforcement Network
guidance described in paragraph (11)(B) of section 5318(g) of title 31,
United States Code, as added by section 702 of this title, the Federal
Financial Institutions Examination Council, in consultation with the
Financial Crimes Enforcement Network, shall develop uniform guidance
and examination procedures for depository institutions that provide
financial services to cannabis-related legitimate businesses and
cannabis-related service providers.
SEC. 704. INVESTMENT IN COMMUNITIES.
(a) CDFI Support.--In addition to funds otherwise available, there
is appropriated out of any money in the Treasury not otherwise
appropriated, $200,000,000 for each of fiscal years 2025 through 2029
to the Community Development Financial Institutions Fund established
under section 104 of the Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4703) to provide grants to expand
lending and investment in low- or moderate-income areas, including
those most affected by the war on drugs.
(b) MDI Support.--In addition to funds otherwise available, there
is appropriated out of any money in the Treasury not otherwise
appropriated, $200,000,000 for each of fiscal years 2025 through 2029
to the Emergency Capital Investment Fund established under section
104A(b) of the Community Development Banking and Financial Institutions
Act of 1994 (12 U.S.C. 4703a(b)) to support the efforts of low- and
moderate-income community financial institutions to, among other
things, provide loans, grants, and forbearance for small businesses,
minority-owned businesses, and consumers, especially in low-income and
underserved communities, including those most affected by the war on
drugs.
(c) Grants To Address Housing and Community Development Needs of
Individuals and Communities Adversely Impacted by the War on Drugs.--
(1) Definitions.--In this subsection:
(A) Eligible activity.--The term ``eligible
activity''--
(i) means any eligible activity--
(I) described in title I of the
Housing and Community Development Act
of 1974 (42 U.S.C. 5301 et seq.), the
HOME Investment Partnerships Act (42
U.S.C. 12721 et seq.), or section 415
of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11374); and
(II) that addresses the needs of
individuals and census tracts in the
provisions described in subclause (I);
and
(ii) does not include administrative
expenses that exceed 15 percent of the amount
of a grant made under this subsection.
(B) Eligible grantee.--The term ``eligible
grantee'' includes any State, unit of general local
government, or Indian tribe eligible to receive a grant
under title I of the Housing and Community Development
Act of 1974 (42 U.S.C. 5301 et seq.).
(C) Individual adversely impacted by the war on
drugs.--The term ``individual adversely impacted by the
War on Drugs'' has the meaning given the term in
section 3062 as defined in section 3062 of the Omnibus
Crime Control and Safe Streets Act of 1968, as added by
section 301(a)(2) of this Act.
(D) State; unit of general local government; indian
tribe.--The terms ``State'', ``unit of general local
government'', and ``Indian tribe'' have the meanings
given the terms in section 102 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302).
(2) Grants.--In addition to funds otherwise available,
there is appropriated out of any money in the Treasury not
otherwise appropriated, $300,000,000 for each of fiscal years
2025 through 2029 to the Secretary of Housing and Urban
Development for grants to eligible grantees for eligible
activities to address the housing and community development
needs of--
(A) individuals adversely impacted by the War on
Drugs; and
(B) housing and community development needs of
census tracts where a disproportionate share of
residents are individuals described in subparagraph
(A), as determined by the Secretary.
(3) Award criteria.--In awarding grants under this
subsection, the Secretary of Housing and Urban Development
shall establish criteria for awards as may be necessary to
demonstrate that the eligible grantee has the need, capacity,
and commitment to carry out a grant under this subsection to
address the needs described in paragraph (2).
(4) Administration and technical assistance.--Of the amount
appropriated under this section, not greater than 10 percent
shall be available to the Secretary of Housing and Urban
Development for administration, evaluation, and technical
assistance activities to carry out the grant program under this
subsection.
SEC. 705. FAIR ACCESS TO FINANCIAL SERVICES.
(a) In General.--All persons shall be entitled to the full and
equal enjoyment of the goods, services, facilities, privileges, and
accommodations of any financial institution, as defined in section 803
of the Payment, Clearing, and Settlement Supervision Act of 2010 (12
U.S.C. 5462), without discrimination on the ground of race, color,
religion, national origin, and sex (including sexual orientation and
gender identity).
(b) Private Right of Action.--
(1) In general.--Whenever any person has engaged or there
are reasonable grounds to believe that any person is about to
engage in any act or practice prohibited by subsection (a), a
civil action for preventive relief, including an application
for a permanent or temporary injunction, restraining order, or
other order, may be instituted by the person aggrieved.
(2) Costs.--In any action commenced pursuant to this
section, the court, in its discretion, may allow the prevailing
party, other than the United States, a reasonable attorney's
fee as part of the costs, and the United States shall be liable
for costs the same as a private person.
(3) Jurisdiction.--The district courts of the United States
shall have jurisdiction of proceedings instituted pursuant to
this section and shall exercise the same without regard to
whether the aggrieved party shall have exhausted any
administrative or other remedies that may be provided by law.
(4) Exclusive means.--The remedies provided in this
subsection shall be the exclusive means of enforcing the rights
based on this section, but nothing in this section shall
preclude any individual or any State or local agency from
asserting any right based on any other Federal or State law not
inconsistent with this section, including any statute or
ordinance requiring nondiscrimination in goods, services,
facilities, privileges, and accommodations of any financial
institution, or from pursuing any remedy, civil or criminal,
which may be available for the vindication or enforcement of
such right.
SEC. 706. CONSUMER PROTECTIONS FOR INDIVIDUALS WITH NONVIOLENT CRIMINAL
RECORD.
No institution may deny financial services to an applicant solely
based on a prior conviction for a nonviolent cannabis offense.
TITLE VIII--MISCELLANEOUS
SEC. 801. COMPTROLLER GENERAL REVIEW OF LAWS AND REGULATIONS.
(a) In General.--The Comptroller General shall conduct a review of
Federal laws, regulations, and policies to--
(1) determine if any changes in them are desirable in the
light of the purposes and provisions of this Act;
(2) identify any use of the terms ``marijuana'' or
``marihuana'' in the rulings, regulations, or interpretations
of various administrative bureaus and agencies of the United
States and recommend that such terms be replaced with the term
``cannabis''; and
(3) identify any use of the terms ``marijuana'' or
``marihuana'' in the statutes of the United States and propose
any amendments necessary to such statutes to replace such terms
with the term ``cannabis''.
(b) Report.--Not later than 2 years after the date of the enactment
of this Act, the Comptroller General shall make to Congress and the
relevant agencies such recommendations relating to the results of the
review described in subsection (a) as the Comptroller General deems
appropriate.
SEC. 802. CANNABIS PRODUCTS ADVISORY COMMITTEE.
(a) Establishment.--
(1) In general.--There is established the Cannabis Products
Advisory Committee (in this section referred to as the
``Committee'').
(2) Purpose.--The Committee shall advise any relevant
Federal regulatory body, agency, or bureau regarding the
administration of this Act (including any amendments made by
this Act).
(b) Membership.--
(1) Appointments.--
(A) In general.--The Committee shall be composed of
22 members who are appointed by the Secretary of Health
and Human Services (in this section referred to as the
``Secretary'').
(B) Date.--The Secretary shall make the
appointments described in subparagraph (A) not later
than 60 days after the date of enactment of this
section.
(2) Term of service.--
(A) In general.--Each member of the Committee shall
serve a term of 5 years from the date of appointment by
the Secretary. No member may be removed prior to the
expiration of his or her term without a showing of good
cause.
(B) Reappointment.--A member may be reappointed but
may not serve more than 2 terms.
(C) Vacancies.--
(i) In general.--Any vacancy in the
Committee shall be filled by the Secretary not
later than 90 days after the vacancy.
(ii) Term.--A member appointed to fill a
vacancy in the Committee shall serve as a
member of the Committee for the remainder of
the original term of appointment.
(3) Membership composition.--The Committee shall be
composed of the following members:
(A) Industry stakeholders.--Three representatives
from the cannabis industry, not less than 1 of which is
an individual representing a historically
underrepresented community or an individual adversely
impacted by the War on Drugs (as defined in section 301
of this Act), including--
(i) 2 individuals who represent the
viewpoint of cannabis cultivators and
processors; and
(ii) 1 individual who represents the
viewpoint of cannabis wholesalers and
retailers.
(B) Equity and social justice advocate.--One
individual with experience in equity and social justice
advocacy with respect to the cannabis industry and
criminal justice.
(C) State cannabis regulator.--One individual who
represents the viewpoint of State cannabis regulators.
(D) Consumers and patients.--One individual who
represents the viewpoint of cannabis consumers and
patients.
(E) Public health, medicine, or science.--Four
individuals who are technically qualified by training
and experience in public health, medicine, or other
sciences, including--
(i) 2 individuals with domestic or
international cannabinoid research experience,
1 of whom shall also have experience treating
patients using medical cannabis; and
(ii) 2 individuals with experience in
substance use and misuse prevention,
intervention, and treatment, 1 of whom shall
have such experience pertaining to individuals
under 21 years of age.
(F) Public safety.--One individual with experience
in public safety with respect to cannabis and the
cannabis industry.
(G) Office of national drug control policy.--One
representative from the Office of National Drug Control
Policy.
(H) Department of veterans affairs.--One
representative from the Department of Veterans Affairs.
(I) Alcohol, tobacco, and cannabis tax and trade
bureau.--One representative from the Alcohol, Tobacco,
and Cannabis Tax and Trade Bureau.
(J) National governors association.--One
representative from the National Governors Association.
(K) Department of transportation.--One
representative from the Department of Transportation.
(L) Department of health and human services.--Four
representatives from the Department of Health and Human
Services, including from the Food and Drug
Administration, the Centers for Disease Control and
Prevention, the National Institutes of Health, and the
Substance Abuse and Mental Health Services
Administration.
(M) Labor unions.--One labor union representative.
(N) Indian tribe.--One representative from an
Indian Tribe.
(4) Administrative support.--The Secretary shall furnish
the Committee clerical and other assistance to enable the
Committee to perform its duties.
(5) Compensation.--
(A) Compensation of members.--A member of the
Committee who is not an officer or employee of the
Federal Government shall be compensated at a rate fixed
by the Secretary, which may not exceed the daily
equivalent of the rate in effect under the Senior
Executive Schedule under section 5382 of title 5,
United States Code, for each day (including travel
time) during which the member is engaged in the
performance of the duties of the Committee.
(B) Travel expenses.--While away from their home or
regular place of business in the performance of
services for the Committee, a member of the Committee
shall be allowed travel expenses, including per diem in
lieu of subsistence, at rates authorized by section
5703 of title 5, United States Code, for persons in
Government service employed intermittently.
(6) Chair.--The Committee shall select a Chair from among
the members of the Committee.
(7) Subcommittees.--The Committee may establish
subcommittees to facilitate the ability of the Committee to
discharge its duties (as described in subsection (c)).
(c) Duties.--The Committee shall--
(1) consider all matters submitted to it by the Secretary;
(2) on its own initiative, recommend to the Secretary
guidelines, rules, and regulations and any changes to
guidelines, rules, and regulations that the Committee considers
important or necessary for the Secretary's review and
consideration, with a focus on ensuring equity and social
justice in such guidelines, rules, and regulations;
(3) consider the safety of introducing new cannabis
products into the market;
(4) review and recommend public health surveillance
activities to monitor population-level health effects with
respect to cannabis;
(5) identify and prioritize gaps in the science important
to public health and medicine with respect to cannabis;
(6) make recommendations to the Secretary of the Treasury
regarding approval of waivers of disqualifying offenses with
respect to permit applications under section 302(a)(2)(B) of
the Federal Alcohol Administration Act (27 U.S.C. 201 et seq.)
(as added by section 511); and
(7) not later than 1 year after the date of enactment of
this section, and annually thereafter, publish a publicly
available report describing the activities of the Committee,
including any recommendations the Committee made to the
Secretary during the reporting period and whether such
recommendations were implemented.
(d) Meetings.--
(1) Frequency.--
(A) In general.--The Committee shall meet on a
quarterly basis but may meet more frequently if
necessary.
(B) Cancellation.--
(i) In general.--Subject to clause (ii),
the Chair may cancel a Committee meeting not
less than 3 business days prior to such meeting
if, in consultation with the members of the
Committee, the Chair determines--
(I) the meeting is not needed; or
(II) there will not be a quorum
present at such meeting.
(ii) Exceptions.--Any meeting may be
canceled by the Chair at any time due to
inclement weather or an emergency situation.
(2) Voting.--
(A) Quorum.--
(i) In general.--A majority of the members
of the Committee shall constitute a quorum.
(ii) Requirement.--A quorum of members
shall be required for any decision of the
Committee.
(iii) Effect of no quorum.--In the absence
of such a quorum, any business transacted by
the Committee shall be null and void, except
any measure taken to obtain a quorum or to
reschedule another meeting.
(B) Majority vote.--Any decision by or
recommendation to the Secretary of the Treasury or the
Secretary of Health and Human Services from the
Committee shall be adopted by a majority vote of the
Committee.
(C) Consensus; vote recording.--
(i) In general.--Decision-making by the
Committee shall be by consensus when possible.
(ii) No consensus.--
(I) Vote.--If consensus cannot be
reached by the Committee, a vote of the
members of the Committee will be taken.
(II) Quorum required.--To take a
vote under subclause (I), a quorum of
the members shall be present.
(III) Recording.--The results of
any vote taken under subclause (I)
shall be recorded, as well as any
statement of concurrence or
disagreement, if applicable.
(3) Teleconference.--A member may fully participate in a
meeting via teleconference.
(4) Confidentiality.--
(A) In general.--Any discussion of the Committee
relative to the work of the Committee is regarded as
confidential information and may not be discussed in
any form outside the context of the Committee meetings.
(B) Waiver requests.--Any materials submitted to
the Committee under section 302(a)(2)(B) of the Federal
Alcohol Administration Act (27 U.S.C. 201 et seq.) (as
added by section 511), and any transcript made with
respect to such submission regarding any particular
person, shall be redacted.
(5) Non-application of faca.--Section 10 of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to any
part of a meeting held by the Committee with respect to a
waiver request submitted to the Committee under section
302(a)(2)(B) of the Federal Alcohol Administration Act (27
U.S.C. 201 et seq.) (as added by section 511).
(e) Statements of Policy.--A member of the Committee may not make a
statement of policy that purports to be that of the Committee unless
the Committee has adopted such a policy, except that any such member
shall not be prohibited from stating his or her personal opinion,
provided the opinion is clearly identified as such.
(f) Termination.--Section 14 of the Federal Advisory Committee Act
(5 U.S.C. App.) shall not apply to the Committee.
SEC. 803. DEFINITION OF HEMP UNDER USDA DOMESTIC HEMP PRODUCTION
PROGRAM.
Section 297A(1) of the Agricultural Marketing Act of 1946 (7 U.S.C.
1639o(1)) is amended--
(1) by striking ``The term'' and inserting the following:
``(A) In general.--The term''; and
(2) in subparagraph (A) (as so designated), by striking
``with a delta-9 tetrahydrocannabinol concentration of not more
than 0.3 percent on a dry weight basis.'' and inserting the
following: ``and any products made or derived from such plant
or parts, with a total tetrahydrocannabinol equivalent
concentration of not more than the allowable
tetrahydrocannabinol equivalent amount described in
subparagraph (C).
``(B) Total tetrahydrocannabinol equivalent.--
``(i) In general.--Subject to clause (ii),
in subparagraph (A), the term `total
tetrahydrocannabinol equivalent' means--
``(I) any tetrahydrocannabinol,
including--
``(aa) delta-8
tetrahydrocannabinol;
``(bb) delta-9
tetrahydrocannabinol;
``(cc) delta-10
tetrahydrocannabinol; and
``(dd)
tetrahydrocannabinolic acid;
and
``(II) any other substance
described in paragraph (tt)(1)(A) of
section 201 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 321) that
has similar effects on the body as a
substance described in item (aa), (bb),
or (cc) of subclause (I), including
through interaction with other
substances in the applicable product.
``(ii) Exclusion of isomers.--The Secretary
of Health and Human Services, in consultation
with the Secretary of the Treasury and the
Attorney General, may exclude 1 or more isomers
of tetrahydrocannabinol from the definition
under clause (i).
``(C) Allowable tetrahydrocannabinol equivalent
amount.--
``(i) In general.--Subject to clause (ii),
the allowable tetrahydrocannabinol equivalent
amount referred to in subparagraph (A) is--
``(I) except as provided in
subclause (II), 1 milligram of total
tetrahydrocannabinol per 100 grams on a
dry weight basis (or a proportionate
amount of any fraction thereof); and
``(II) in the case of any specified
plant product described in clause
(iii), 0.7 percent total
tetrahydrocannabinol equivalent on a
dry weight basis.
``(ii) Modification; determination with
respect to tetrahydrocannabinolic acid.--For
purposes of clause (i), under regulations
promulgated by the Secretary of Health and
Human Services, in consultation with the
Secretary of the Treasury and the Attorney
General--
``(I) the Secretary may modify the
allowable tetrahydrocannabinol
equivalent amounts described in clause
(i) if the Secretary determines that
the effects on the body of such
substance or interaction of substances
differ significantly from the effects
on the body of delta-9
tetrahydrocannabinol; and
``(II) rules similar to the rules
relating to the determination of `Total
THC' in section 990.1 of title 7, Code
of Federal Regulations (as in effect on
the date of enactment of the Cannabis
Administration and Opportunity Act),
shall apply in calculating the ratio of
tetrahydrocannabinolic acid described
in subparagraph (B)(i)(I)(dd) taken
into account for purposes of
determining the allowable
tetrahydrocannabinol equivalent amount.
``(iii) Specified plant product.--A
specified plant product referred to in clause
(i)(II) is any item described in paragraph
(tt)(1)(A) of section 201 of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 321) that
does not contain any item described in that
paragraph that has been processed, extracted,
or concentrated (other than harvesting, drying,
curing, or trimming).''.
SEC. 804. GRANTS FOR HIRING AND TRAINING RELATING TO CANNABIS
ENFORCEMENT.
(a) Amendment.--Section 1701 of title I of the Omnibus Crime
Control and Safe Streets Act of 1968 (34 U.S.C. 10381) is amended--
(1) by redesignating subsection (m) as subsection (p);
(2) by redesignating subsection (n) as subsection (o); and
(3) by inserting after subsection (l) the following:
``(m) COPS Grants for Small Departments To Combat Illicit Cannabis
Production and Distribution.--
``(1) Eligible entity defined.--In this subsection, the
term `eligible entity' means a law enforcement agency that--
``(A) has not more than 50 sworn law enforcement
officers;
``(B) serves not more than 50,000 residents; and
``(C) demonstrates a need for additional personnel
to combat illicit cannabis production and distribution.
``(2) Grants.--The Attorney General shall award competitive
grants to eligible entities for hiring--
``(A) sworn law enforcement officers;
``(B) non-sworn law enforcement officers;
``(C) investigators; and
``(D) community outreach specialists.
``(n) Cannabis Law Education Programs and Technical Assistance.--
``(1) Program development.--The Attorney General shall
develop Federal education programs and technical assistance for
State and local law enforcement agencies to develop the
knowledge and expertise necessary to ensure--
``(A) the enforcement of State and Federal cannabis
laws; and
``(B) that the enforcement described in
subparagraph (A) is consistent with the Constitution of
the United States.
``(2) State-specific training and guidance.--The Director
of the Bureau of Justice Assistance shall develop State-
specific training and guidance for law enforcement agencies
within a jurisdiction for use in the Federal education programs
described in paragraph (1).
``(3) Grants.--The Attorney General shall award grants to
law enforcement agencies for the costs associated with training
under this subsection.''.
(b) Appropriations.--In addition to amounts otherwise available,
there is appropriated, out of any funds in the Treasury not otherwise
appropriated, $15,000,000 for each of fiscal years 2025 through 2029 to
carry out this section.
SEC. 805. SEVERABILITY.
If any provision of this Act or an amendment made by this Act, or
any application of such provision to any person or circumstance, is
held to be unconstitutional, the remainder of this Act, the amendments
made by this Act, and the application of this Act and the amendments
made by this Act to any other person or circumstance shall not be
affected.
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