II 

117TH CONGRESS 

2D SESSION S. 4591 

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 

JULY 21, 2022 

Mr. BOOKER (for himself, Mr. WYDEN, Mr. SCHUMER, Mrs. MURRAY, and 

Mr. PETERS) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Cannabis Administration and Opportunity Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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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 


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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 hiring in banking. 

Sec. 706. Fair access to financial services. 

Sec. 707. Consumer protections for individuals with nonviolent criminal record. 

TITLE VIII—MISCELLANEOUS 


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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. 

1 SEC. 2. FINDINGS. 

2 The Congress finds as follows: 

3 (1) The communities that have been most 

4 harmed by cannabis prohibition are benefitting the 

5 least from the legal marijuana marketplace. 

6 (2) A legacy of racial and ethnic injustices, 

7 compounded by the disproportionate collateral con8 sequences of 80 years of cannabis prohibition en9 forcement, now limits participation in the industry. 

10 (3) 38 States, the District of Columbia, Puerto 

11 Rico, Guam, the U.S. Virgin Islands, and Indian 

12 Tribes have adopted laws allowing legal access to 

13 cannabis, and 19 States, the District of Columbia, 

14 the Commonwealth of the Northern Mariana Is15 lands, and Guam have adopted laws legalizing can16 nabis for adult recreational use. 

17 (4) A total of 49 States have reformed their 

18 laws pertaining to cannabis despite the Schedule I 

19 status of marijuana and its Federal criminalization. 

20 (5) Legal cannabis businesses support more 

21 than 428,000 jobs throughout the United States. 


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1 (6) Legal cannabis sales totaled 

2 $25,000,000,000 in 2021 and are projected to reach 

3 $45,000,000,000 by 2025. 

4 (7) According to the American Civil Liberties 

5 Union (ACLU), enforcing cannabis prohibition laws 

6 costs taxpayers approximately $3,600,000,000 a 

7 year. 

8 (8) The continued enforcement of cannabis pro9 hibition laws resulted in over 350,000 arrests in 

10 2020, disproportionately impacting people of color 

11 who are almost 4 times more likely to be arrested 

12 for cannabis possession than their White counter13 parts, despite equal rates of use across populations. 

14 (9) People of color and Native Americans have 

15 been historically targeted by discriminatory sen16 tencing practices resulting in Black men receiving 

17 drug sentences that are 13.1 percent longer than 

18 sentences imposed for White men and Latinos being 

19 nearly 6.5 times more likely to receive a Federal 

20 sentence for cannabis possession than non-Hispanic 

21 Whites. 

22 (10) In 2013, simple cannabis possession was 

23 the fourth most common cause of deportation for 

24 any offense and the most common cause of deporta25 tion for drug law violations. Since 2003, the United 


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1 States has deported more than 45,000 people whose 

2 most serious conviction was cannabis possession. 

3 (11) Fewer than one-fifth of cannabis business 

4 owners identify as minorities and only approximately 

5 2 percent are Black. 

6 (12) Applicants for cannabis licenses are lim7 ited by numerous laws, regulations, and exorbitant 

8 permit applications, licensing fees, and costs in these 

9 States, which can require more than $700,000. 

10 (13) Historically disproportionate arrest and 

11 conviction rates make it particularly difficult for 

12 people of color to enter the legal cannabis market13 place, as most States bar these individuals from par14 ticipating. 

15 (14) Federal law severely limits access to loans 

16 and capital for cannabis businesses, disproportion17 ately impacting minority and Tribal small business 

18 owners. 

19 (15) Some States, Indian Tribes, and munici20 palities have taken proactive steps to mitigate in21 equalities in the legal cannabis marketplace and en22 sure equal participation in the industry. 

23 SEC. 3. DEFINITIONS. 

24 In this Act: 


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1 (1) CANNABIS; CANNABIS PRODUCT.—The 

2 terms ‘‘cannabis’’ and ‘‘cannabis product’’ have the 

3 same meanings given such terms in subsection (ss) 

4 of section 201 of the Federal Food, Drug, and Cos5 metic Act (21 U.S.C. 321) (as added by section 502 

6 of this Act). 

7 (2) CANNABIS OFFENSE.—The term ‘‘cannabis 

8 offense’’ means a criminal offense related to can9 nabis— 

10 (A) that, under Federal law, is no longer 

11 punishable pursuant to this Act or the amend12 ments made under this Act; or 

13 (B) that, under State law, is no longer an 

14 offense or that was designated a lesser offense 

15 or for which the penalty was reduced under 

16 State law pursuant to or following the adoption 

17 of a State law authorizing the sale or use of 

18 cannabis. 

19 (3) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

20 means the governing body of any individually identi21 fied and federally recognized Indian or Alaska Na22 tive tribe, band, nation, pueblo, village, community, 

23 affiliated Tribal group, or component reservation in24 cluded on the list published most recently as of the 

25 date of enactment of this Act pursuant to section 


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1 104(a) of the Federally Recognized Indian Tribe 

2 List Act of 1994 (25 U.S.C. 5131(a)). 

3 TITLE I—DECRIMINALIZATION 

4 OF CANNABIS, PUBLIC SAFE5 TY, AND STATES’ RIGHTS 

6 Subtitle A—Decriminalization of 

7 Cannabis 

8 SEC. 101. DECRIMINALIZATION OF CANNABIS. 

9 (a) CANNABIS REMOVED FROM SCHEDULE OF CON10 TROLLED SUBSTANCES.— 

11 (1) REMOVAL IN STATUTE.—Schedule I of sec12 tion 202 of the Controlled Substances Act (21 

13 U.S.C. 812) is amended— 

14 (A) in subsection (c)— 

15 (i) by striking ‘‘(10) Marihuana.’’; 

16 and 

17 (ii) in paragraph (17), by inserting 

18 ‘‘in cannabis (as defined in section 

19 201(ss)(1) of the Federal Food, Drug, and 

20 Cosmetic Act (21 U.S.C. 321(ss)(1))) or 

21 tetrahydrocannabinols’’ before ‘‘in hemp’’; 

22 and 

23 (B) in subsection (d)(2), by adding at the 

24 end the following new subparagraph: 


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1 ‘‘(C) Such term does not include any sub2 stance made of or derived from cannabis (as de3 fined in section 201(ss)(1) of the Federal Food, 

4 Drug, and Cosmetic Act (21 U.S.C. 321(ss)(1)) 

5 or hemp (as defined in section 297A of the Ag6 ricultural Marketing Act of 1946 (7 U.S.C. 

7 1639o))’’. 

8 (2) REMOVAL FROM SCHEDULE.—Not later 

9 than 180 days after the date of the enactment of 

10 this Act, the Attorney General shall finalize a rule11 making under section 201(a)(2) of the Controlled 

12 Substances Act (21 U.S.C. 811(a)(2)) removing 

13 marihuana and tetrahydrocannabinols in cannabis 

14 (as defined in section 201(ss)(1) of the Federal 

15 Food, Drug, and Cosmetic Act (21 U.S.C. 

16 321(ss)(1))) from the schedules of controlled sub17 stances. For the purposes of the Controlled Sub18 stances Act, marihuana and tetrahydrocannabinols 

19 in cannabis (as so defined) shall each be deemed to 

20 be a drug or other substance that does not meet the 

21 requirements for inclusion in any schedule. A rule22 making under this paragraph shall be considered to 

23 have taken effect as of the date of enactment of this 

24 Act for purposes of any offense committed, case 

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1 venile, any offense committed, case pending, and ad2 judication of juvenile delinquency entered before, on, 

3 or after the date of enactment of this Act. 

4 (3) RESCHEDULING REVIEW OF NON-CANNABIS

5 DERIVED TETRAHYDROCANNIBINOLS AND

6 CANNABIMIMETIC AGENTS.— 

7 (A) IN GENERAL.—Not later than 1 year 

8 after the date of enactment of this Act, the At9 torney General shall initiate a review of the 

10 schedules applicable to the substances described 

11 in subsections (c)(17) and (d) of Schedule I of 

12 section 202 of the Controlled Substances Act 

13 (21 U.S.C. 812). 

14 (B) MOTION TO TRANSFER.—Pursuant to 

15 the findings of the review conducted under sub16 paragraph (A), the Secretary of Health and 

17 Human Services shall, as appropriate, initiate a 

18 motion to transfer such substances between 

19 schedules pursuant to section 201 of the Con20 trolled Substances Act (21 U.S.C. 811). 

21 (b) CONFORMING AMENDMENTS TO CONTROLLED

22 SUBSTANCES ACT.—The Controlled Substances Act (21 

23 U.S.C. 801 et seq.) is amended— 

24 (1) in section 102 (21 U.S.C. 802)— 

25 (A) by striking paragraph (16); and 


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1 (B) in paragraph (44), by striking ‘‘mari2 huana,’’; 

3 (2) in section 401(b) (21 U.S.C. 841(b))— 

4 (A) in paragraph (1)— 

5 (i) in subparagraph (A)— 

6 (I) in clause (vi), by inserting 

7 ‘‘or’’ after the semicolon; 

8 (II) by striking clause (vii); and 

9 (III) by redesignating clause 

10 (viii) as clause (vii); 

11 (ii) in subparagraph (B)— 

12 (I) in clause (vi), by inserting 

13 ‘‘or’’ after the semicolon; 

14 (II) by striking clause (vii); and 

15 (III) by redesignating clause 

16 (viii) as clause (vii); 

17 (iii) in subparagraph (C), in the first 

18 sentence, by striking ‘‘subparagraphs (A), 

19 (B), and (D)’’ and inserting ‘‘subpara20 graphs (A) and (B)’’; 

21 (iv) by striking subparagraph (D); 

22 (v) by redesignating subparagraph (E) 

23 as subparagraph (D); and 

24 (vi) in subparagraph (D)(i), as so re25 designated, by striking ‘‘subparagraphs (C) 


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1 and (D)’’ and inserting ‘‘subparagraph 

2 (C)’’; 

3 (B) by striking paragraph (4); and 

4 (C) by redesignating paragraphs (5), (6), 

5 and (7) as paragraphs (4), (5), and (6), respec6 tively; 

7 (3) in section 402(c)(2)(B) (21 U.S.C. 

8 842(c)(2)(B)), by striking ‘‘, marihuana,’’; 

9 (4) in section 403(d)(1) (21 U.S.C. 843(d)(1)), 

10 by striking ‘‘, marihuana,’’; 

11 (5) in section 418(a) (21 U.S.C. 859(a)), by 

12 striking the last sentence; 

13 (6) in section 419(a) (21 U.S.C. 860(a)), by 

14 striking the last sentence; 

15 (7) in section 422(d) (21 U.S.C. 863(d))— 

16 (A) in the matter preceding paragraph (1), 

17 by striking ‘‘marijuana, cocaine, hashish, hash18 ish oil,’’ and inserting ‘‘cocaine,’’; and 

19 (B) in paragraph (5), by striking ‘‘, such 

20 as a marihuana cigarette,’’; 

21 (8) in section 516(d) (21 U.S.C. 886(d)), by 

22 striking ‘‘section 401(b)(6)’’ each place the term ap23 pears and inserting ‘‘section 401(b)(5)’’; and 

24 (9) in section 1010(b) (21 U.S.C. 960(b))— 

25 (A) in paragraph (1)— 


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1 (i) in subparagraph (F), by inserting 

2 ‘‘or’’ after the semicolon; 

3 (ii) by striking subparagraph (G); 

4 (iii) by redesignating subparagraph 

5 (H) as subparagraph (G); and 

6 (iv) in subparagraph (G), as so redes7 ignated, by striking the period at the end 

8 and inserting a semicolon; 

9 (B) in paragraph (2)— 

10 (i) in subparagraph (F), by inserting 

11 ‘‘or’’ after the semicolon; 

12 (ii) by striking subparagraph (G); 

13 (iii) by redesignating subparagraph 

14 (H) as subparagraph (G); and 

15 (iv) in subparagraph (G), as so redes16 ignated, by striking the period at the end 

17 and inserting a semicolon; 

18 (C) by striking paragraph (4); and 

19 (D) by redesignating paragraphs (5), (6), 

20 and (7) as paragraphs (4), (5), and (6), respec21 tively. 

22 (c) OTHER CONFORMING AMENDMENTS.— 

23 (1) NATIONAL FOREST SYSTEM DRUG CONTROL

24 ACT OF 1986.—The National Forest System Drug 


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1 Control Act of 1986 (16 U.S.C. 559b et seq.) is 

2 amended— 

3 (A) in section 15002(a) (16 U.S.C. 

4 559b(a)) by striking ‘‘marijuana and other’’; 

5 (B) in section 15003(2) (16 U.S.C. 

6 559c(2)) by striking ‘‘marijuana and other’’; 

7 and 

8 (C) in section 15004(2) (16 U.S.C. 

9 559d(2)) by striking ‘‘marijuana and other’’. 

10 (2) INTERCEPTION OF COMMUNICATIONS.—Sec11 tion 2516 of title 18, United States Code, is amend12 ed— 

13 (A) in subsection (1)(e), by striking ‘‘mari14 huana,’’; and 

15 (B) in subsection (2) by striking ‘‘mari16 huana’’. 

17 (3) FMCSA PROVISIONS.— 

18 (A) CONFORMING AMENDMENT.—Section 

19 31301(5) of title 49, United States Code, is 

20 amended by striking ‘‘section 31306,’’ and in21 serting ‘‘sections 31306, 31306a, and sub22 sections (b) and (c) of section 31310,’’. 

23 (B) DEFINITION.—Section 31306(a) of 

24 title 49, United States Code, is amended— 


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1 (i) by striking ‘‘means any substance’’ 

2 and inserting the following: ‘‘means— 

3 ‘‘(1) any substance’’; and 

4 (ii) by striking the period at the end 

5 and inserting ‘‘; and 

6 ‘‘(2) any substance not covered under para7 graph (1) that was a substance under such section 

8 as of December 1, 2018, and specified by the Sec9 retary of Transportation.’’. 

10 (C) DISQUALIFICATIONS.—Section 

11 31310(b) of title 49, United States Code, is 

12 amended by adding at the end the following: 

13 ‘‘(3) In this subsection and subsection (c), the 

14 term ‘controlled substance’ has the meaning given 

15 such term in section 31306(a).’’. 

16 (4) FAA PROVISIONS.—Section 45101 of title 

17 49, United States Code, is amended— 

18 (A) by striking ‘‘means any substance’’ 

19 and inserting the following: ‘‘means— 

20 ‘‘(A) any substance’’; and 

21 (B) by striking the period at the end and 

22 inserting ‘‘; and 

23 ‘‘(B) any substance not covered under sub24 paragraph (A) that was a substance under such 


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1 section as of December 1, 2018, and specified 

2 by the Secretary of Transportation.’’. 

3 (5) FRA PROVISIONS.—Section 20140(a) of 

4 title 49, United States Code, is amended— 

5 (A) by striking ‘‘means any substance’’ 

6 and inserting the following: ‘‘means— 

7 ‘‘(1) any substance’’; and 

8 (B) by striking the period at the end and 

9 inserting ‘‘; and 

10 ‘‘(2) any substance not covered under para11 graph (1) that was a substance under such section 

12 as of December 1, 2018, and specified by the Sec13 retary of Transportation.’’. 

14 (6) FTA PROVISIONS.—Section 5331(a)(1) of 

15 title 49, United States Code, is amended— 

16 (A) by striking ‘‘means any substance’’ 

17 and inserting the following: ‘‘means— 

18 ‘‘(A) any substance’’; and 

19 (B) by striking the period at the end and 

20 inserting ‘‘; and 

21 ‘‘(B) any substance not covered under sub22 paragraph (A) that was a substance under such 

23 section as of December 1, 2018, and whose use 

24 the Secretary of Transportation decides has a 

25 risk to transportation safety.’’. 


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1 (7) PRISON CONTRABAND.—Section 1791(d)(1) 

2 of title 18, United States Code, is amended— 

3 (A) in subparagraph (A), by striking 

4 ‘‘marijuana or’’; 

5 (B) in subparagraph (B), by striking 

6 ‘‘marijuana or’’; and 

7 (C) in subparagraph (D), by inserting ‘‘, 

8 cannabis, as defined in section 3 of the Can9 nabis Administration and Opportunity Act,’’ 

10 after ‘‘subsection)’’. 

11 (8) OTHER CONTRABAND.—Section 

12 80302(a)(1) of title 49, United States Code, is 

13 amended by striking ‘‘, including marihuana (as de14 fined in section 102 of that Act (21 U.S.C. 802)),’’. 

15 (9) TARIFF ACT PROVISIONS.—Section 

16 584(a)(2) of the Tariff Act of 1930 (19 U.S.C. 

17 1584(a)(2)) is amended— 

18 (A) by striking the second sentence and in19 serting ‘‘If any of such merchandise so found 

20 consists of smoking opium or opium prepared 

21 for smoking, the master of such vessel or per22 son in charge of such vehicle or the owner of 

23 such vessel or vehicle or any person directly or 

24 indirectly responsible for smoking opium or 

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1 chandise shall be liable to a penalty of $500 for 

2 each ounce thereof so found.’’; and 

3 (B) by striking the last sentence and in4 serting ‘‘As used in this paragraph, the term 

5 ‘opiate’ shall have the same meaning given that 

6 term by sections 102(18) of the Controlled Sub7 stances Act (21 U.S.C. 802(18)).’’. 

8 (d) RETROACTIVITY.— 

9 (1) IN GENERAL.—The amendments made by 

10 this section to the Controlled Substances Act (21 

11 U.S.C. 801 et seq.) are retroactive and shall apply 

12 to any offense committed, case pending, conviction 

13 entered, and, in the case of a juvenile, any offense 

14 committed, case pending, or adjudication of juvenile 

15 delinquency entered before, on, or after the date of 

16 enactment of this Act. 

17 (2) APPLICATION TO PENDING ACTIONS.—With 

18 respect to any pending criminal charges or case and 

19 conviction awaiting sentencing that is impacted by 

20 the amendments to the Controlled Substances Act 

21 (21 U.S.C. 801 et seq.) made by this section, the 

22 Government shall drop the relevant charges or seek 

23 dismissal of all pending charges not later than 30 

24 days after the date of enactment of this Act. Any 

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1 missal of relevant charges under this provision, and 

2 not detained for any other reason, shall be entitled 

3 to issuance of a writ under section 1361 or 2241 of 

4 title 28, United States Code, to effectuate immediate 

5 release. 

6 (3) APPLICATION TO DEFENDANTS PREVIOUSLY

7 SENTENCED.—Not later than 60 days after the date 

8 of enactment of this Act, the Director of the Bureau 

9 of Prisons, United States Marshals Service, or 

10 United States Parole Commission, as applicable, 

11 shall release from its control, and the sentencing 

12 court shall enter an order vacating the conviction 

13 and sentence for, any individual convicted or sen14 tenced before the date of enactment of this Act for 

15 any Federal offense involving marijuana, marihuana 

16 (as defined in section 202(16) of the Controlled Sub17 stances Act (21 U.S.C. 812(16))), or 

18 tetrahydrocannabinols and is not serving a sentence 

19 for any conduct not covered by this Act or serving 

20 multiple sentences as provided in section 3584 of 

21 title 18, United States Code. Any person not so 

22 timely released and entitled to such release under 

23 this provision shall be entitled to issuance of a writ 

24 under section 1361 or 2241 of title 28, United 

25 States Code, to effectuate immediate release. 


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1 (4) CUMULATIVE SENTENCING RECONSIDER2 ATION.—In the case of a defendant who, before the 

3 date of enactment of this Act, was convicted or sen4 tenced for any Federal offense involving marijuana, 

5 marihuana, or tetrahydrocannabinols, and, after 

6 vacatur of that sentence, is also serving a sentence 

7 for any other crime not covered by this Act, or in 

8 the case of a defendant who was convicted or sen9 tenced for any Federal offense the sentencing range 

10 for which was elevated based on a prior conviction 

11 for an offense involving marijuana, marihuana, or 

12 tetrahydrocannabinols, the sentencing court may, on 

13 motion of the defendant, the Director of the Bureau 

14 of Prisons, the Attorney General, or, on its own mo15 tion, impose a reduced sentence after considering the 

16 factors set forth in section 3553(a) of title 18, 

17 United States Code. 

18 (e) SPECIAL RULE FOR FEDERAL EMPLOYEE TEST19 ING.—Section 503 of the Supplemental Appropriations 

20 Act, 1987 (5 U.S.C. 7301 note) is amended by adding at 

21 the end the following: 

22 ‘‘(h) CANNABIS.— 

23 ‘‘(1) TESTING FOR CANNABIS.— 


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1 ‘‘(A) IN GENERAL.—For purposes of Exec2 utive Order 12564, cannabis shall not be treat3 ed as an illegal drug. 

4 ‘‘(B) EXCEPTION FOR DRUG TESTING.— 

5 Notwithstanding subparagraph (A) or the Can6 nabis Administration and Opportunity Act and 

7 the amendments made thereby, the Secretary of 

8 Health and Human Services or the head of an 

9 agency may deem cannabis to be a schedule I 

10 controlled substance within the meaning of sec11 tion 102(6) of the Controlled Substances Act 

12 (21 U.S.C. 802(6)), and unlawful to possess 

13 under title II or III of such Act, exclusively for 

14 the purpose of drug testing of any law enforce15 ment officer (as defined in section 8331 of title 

16 5, United States Code) or any Federal employee 

17 in a position that the head of an agency deter18 mines, in writing, to have significant involve19 ment in national security or the protection of 

20 life, property, public health, or public safety, 

21 provided that either such employee is subject to 

22 this section, Executive Order 12564, or other 

23 applicable Federal laws and orders. 


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1 ‘‘(2) DEFINITION.—The term ‘cannabis’ has 

2 the meaning given the term in section 3 of the Can3 nabis Administration and Opportunity Act.’’. 

4 (f) SPECIAL RULE FOR CERTAIN REGULATIONS.— 

5 (1) IN GENERAL.—The amendments made by 

6 this section may not be construed to abridge the au7 thority of the Secretary of Transportation, or the 

8 Secretary of the department in which the Coast 

9 Guard is operating, to regulate and screen for the 

10 use of a controlled substance. 

11 (2) CONTROLLED SUBSTANCE DEFINED.—In 

12 this subsection, the term ‘‘controlled substance’’ 

13 means— 

14 (A) any substance covered under section 

15 102 of the Controlled Substances Act (21 

16 U.S.C. 802) on the day before the date of en17 actment of this Act; and 

18 (B) any substance not covered under sub19 paragraph (A) that was a substance covered 

20 under section 102 of the Controlled Substances 

21 Act (21 U.S.C. 802) on December 1, 2018, and 

22 specified by the Secretary of Transportation. 


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1 SEC. 102. TRANSFERRING AGENCY FUNCTIONS WITH RE2 GARD TO CANNABIS. 

3 (a) TRANSFER OF JURISDICTION FROM THE DRUG

4 ENFORCEMENT ADMINISTRATION TO THE DEPARTMENT

5 OF HEALTH AND HUMAN SERVICES AND THE DEPART6 MENT OF THE TREASURY.—The functions of the Attorney 

7 General, acting through the Administrator of the Drug 

8 Enforcement Administration relating to cannabis enforce9 ment, shall hereafter be administered by— 

10 (1) the Secretary of Health and Human Serv11 ices, and 

12 (2) the Secretary of the Treasury. 

13 (b) REDESIGNATION OF ALCOHOL AND TOBACCO

14 TAX AND TRADE BUREAU AS ALCOHOL, TOBACCO, AND

15 CANNABIS TAX AND TRADE BUREAU.— 

16 (1) REDESIGNATION.—Section 1111(d) of the 

17 Homeland Security Act of 2002 (6 U.S.C. 531(d)) 

18 is amended by striking ‘‘Tax and Trade Bureau’’ 

19 each place it appears and inserting ‘‘Alcohol, To20 bacco, and Cannabis Tax and Trade Bureau’’. 

21 (2) REFERENCES.—Any reference to the Tax 

22 and Trade Bureau or the Alcohol and Tobacco Tax 

23 and Trade Bureau in any law, regulation, map, doc24 ument, record, or other paper of the United States 

25 shall be deemed to be a reference to the Alcohol, To26 bacco, and Cannabis Tax and Trade Bureau. 


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1 (c) MEMORANDUM OF UNDERSTANDING.— 

2 (1) IN GENERAL.—For purposes of carrying out 

3 the purposes of this Act, not later than 180 days 

4 after the date of enactment of this Act, the Sec5 retary of the Treasury (acting through the Alcohol, 

6 Tobacco, and Cannabis Tax and Trade Bureau, as 

7 so redesignated under subsection (b)) and the Sec8 retary of Health and Human Services (acting 

9 through the Commissioner of Food and Drugs) shall 

10 enter into memorandum of understanding regarding 

11 coordination of their respective responsibilities with 

12 regard to regulation of cannabis and cannabis prod13 ucts. 

14 (2) COMPLIANCE BURDENS.—For purposes of 

15 establishing the memorandum of understanding de16 scribed in paragraph (1), the Secretary of the Treas17 ury and the Secretary of Health and Human Serv18 ices shall include consideration of— 

19 (A) any compliance burdens imposed on 

20 persons involved in the cannabis industry who 

21 are subject to regulation under this Act and the 

22 amendments made by this Act, and 

23 (B) to the greatest extent practicable, re24 duction of any unnecessary administrative du25 plication with respect to such regulation. 


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1 Subtitle B—Public Safety and 

2 States’ Rights 

3 SEC. 111. STATES’ RIGHTS. 

4 (a) STATE STATUTES AS OPERATIVE ON TERMI5 NATION OF TRANSPORTATION; ORIGINAL PACKAGES.—All 

6 cannabis transported into any State or territory of the 

7 United States or remaining therein for use, consumption, 

8 sale, or storage therein, shall, upon arrival in that State 

9 or territory, be subject to the operation and effect of the 

10 laws of that State or territory enacted in the exercise of 

11 its police powers, to the same extent and in the same man12 ner as though the cannabis had been produced in that 

13 State or territory, and shall not be exempt therefrom by 

14 reason of being introduced therein in original packages or 

15 otherwise. 

16 (b) SHIPMENT INTO STATES FOR POSSESSION OR

17 SALE IN VIOLATION OF STATE LAW.—The shipment or 

18 transportation, in any manner or by any means whatso19 ever, of cannabis from a State, territory, or district of the 

20 United States, or place noncontiguous to but subject to 

21 the jurisdiction thereof, into any other State, territory, or 

22 district of the United States, or place noncontiguous to 

23 but subject to the jurisdiction thereof, or from any foreign 

24 country into any State, territory, or district of the United 

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1 diction thereof, which said cannabis is intended, by any 

2 person interested therein, to be received, possessed, sold, 

3 or in any manner used, either in the original package or 

4 otherwise, in violation of any law of that State, territory, 

5 or district of the United States, or place noncontiguous 

6 to but subject to the jurisdiction thereof, is prohibited. 

7 (c) TRANSPORTATION OF CANNABIS AND CANNABIS

8 PRODUCTS.—No State or Indian Tribe may prohibit the 

9 transportation or shipment of cannabis or cannabis prod10 ucts through the State or the territory of the Indian Tribe, 

11 as applicable. 

12 (d) INJUNCTIVE RELIEF.—Section 2 of the Victims 

13 of Trafficking and Violence Protection Act of 2000 (27 

14 U.S.C. 122a) is amended— 

15 (1) in subsection (a)— 

16 (A) by redesignating paragraphs (3) and 

17 (4) as paragraphs (4) and (5), respectively; and 

18 (B) by inserting after paragraph (2) the 

19 following new paragraph: 

20 ‘‘(3) the term ‘cannabis’ has the meaning given 

21 the term in section 3 of the Cannabis Administra22 tion and Opportunity Act ;’’; and 

23 (2) in subsections (b) and (c), by inserting ‘‘or 

24 cannabis’’ after ‘‘intoxicating liquor’’ each place it 

25 appears. 


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1 SEC. 112. DIVERSION OF CANNABIS. 

2 (a) IN GENERAL.— 

3 (1) VIOLATIONS OF CANNABIS LAWS OR REGU4 LATIONS; PENALTIES AND INJUNCTIONS.— 

5 (A) DEFINITION.—In this paragraph, the 

6 term ‘‘common or contract carrier’’ means a 

7 carrier holding a certificate of convenience and 

8 necessity, a permit for contract carrier by 

9 motor vehicle, or other valid operating authority 

10 under subtitle IV of title 49, United States 

11 Code, or under equivalent operating authority 

12 from a regulatory agency of the United States 

13 or of any State. 

14 (B) CANNABIS DIVERSION.— 

15 (i) IN GENERAL.—Except as provided 

16 in clause (ii), it shall be unlawful to— 

17 (I) knowingly grow, manufacture, 

18 ship, transport, receive, possess, sell, 

19 or distribute or purchase 10 pounds 

20 or more of cannabis without author21 ization under a State law or pursuant 

22 to a permit issued under section 301 

23 of the Federal Alcohol Administration 

24 Act, as added by section 511 of this 

25 Act; or 


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1 (II) knowingly possess 10 pounds 

2 or more of cannabis that bears no evi3 dence of the payment of applicable 

4 State or local cannabis taxes in the 

5 State or locality where the cannabis is 

6 found, if— 

7 (aa) the State or local gov8 ernment requires a stamp, im9 pression, or other indication to be 

10 placed on packages or other con11 tainers of cannabis to evidence 

12 payment of cannabis taxes; and 

13 (bb) the cannabis is in the 

14 possession of any person other 

15 than a person holding a permit 

16 under section 301 of the Federal 

17 Alcohol Administration Act, as 

18 added by section 511 of this Act; 

19 (III) knowingly grow, manufac20 ture, ship, transport, receive, possess, 

21 sell, or distribute or purchase 20 

22 pounds or more of cannabis without 

23 authorization under a State law or 

24 pursuant to a permit issued under 

25 section 301 of the Federal Alcohol 


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1 Administration Act, as added by sec2 tion 511 of this Act; or 

3 (IV) knowingly possess 20 

4 pounds or more of cannabis that bears 

5 no evidence of the payment of applica6 ble State or local cannabis taxes in 

7 the State or locality where the can8 nabis is found, if— 

9 (aa) the State or local gov10 ernment requires a stamp, im11 pression, or other indication to be 

12 placed on packages or other con13 tainers of cannabis to evidence 

14 payment of cannabis taxes; and 

15 (bb) the cannabis is in the 

16 possession of any person other 

17 than a person holding a permit 

18 under section 301 of the Federal 

19 Alcohol Administration Act, as 

20 added by section 511 of this Act. 

21 (ii) EXCEPTIONS.—Clause (i) shall 

22 not apply to— 

23 (I) a common or contract carrier 

24 transporting the cannabis involved 

25 under a proper bill of lading or freight 


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1 bill which states the quantity, source, 

2 and destination of the cannabis; 

3 (II) a person— 

4 (aa) who is licensed or oth5 erwise authorized by the State 

6 where the cannabis is found to 

7 account for and pay cannabis 

8 taxes imposed by such State; and 

9 (bb) who has complied with 

10 the accounting and payment re11 quirements relating to such li12 cense or authorization with re13 spect to the cannabis involved; 

14 (III) an officer, employee, or 

15 other agent of the United States, an 

16 Indian Tribe, or a State, or any de17 partment, agency, or instrumentality 

18 of the United States, an Indian Tribe, 

19 or a State (including any political sub20 division of an Indian Tribe or a State) 

21 having possession of the cannabis in 

22 connection with the performance of of23 ficial duties; or 

24 (IV) a person— 


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1 (aa) involved in the manu2 facture, marketing, or distribu3 tion of a drug containing can4 nabis that is otherwise in compli5 ance with State and Federal law; 

6 and 

7 (bb) who possesses cannabis 

8 in connection with the lawful ac9 tivities described in item (aa). 

10 (iii) PENALTY.—Any person who vio11 lates— 

12 (I) subclause (I) or (II) of clause 

13 (i) shall be imprisoned not more than 

14 1 year, fined not more than $50,000, 

15 or both; or 

16 (II) subclause (III) or (IV) of 

17 clause (i) shall be imprisoned not 

18 more than 5 years, fined not more 

19 than $100,000, or both. 

20 (2) FINES.—The penalty provided for in this 

21 subsection may be recovered by the Secretary of the 

22 Treasury or by an action brought by the Attorney 

23 General in any court of competent jurisdiction. 

24 (3) ENFORCEMENT.—It shall be the duty of the 

25 Attorney General upon the request of the Secretary 


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1 of the Treasury to bring an action for an injunction 

2 against any person who violates, disobeys or dis3 regards any term or provision of this subtitle or of 

4 any lawful notice, order or regulation pursuant 

5 thereto; provided, however, that the Secretary of the 

6 Treasury shall furnish the Attorney General with 

7 such material, evidentiary matter or proof as may be 

8 requested by the Attorney General for the prosecu9 tion of such an action. 

10 (b) TRACKING AND TRACING REGULATIONS.— 

11 (1) ISSUANCE OF TRACKING AND TRACING REG12 ULATIONS.— 

13 (A) IN GENERAL.—Not later than 1 year 

14 after the date of enactment of this Act, the Sec15 retary of the Treasury (referred to in this sec16 tion as the ‘‘Secretary’’), acting through the 

17 Administrator of the Alcohol, Tobacco, and 

18 Cannabis Tax and Trade Bureau and in coordi19 nation with the Secretary of Health and 

20 Human Services, shall issue regulations relating 

21 to the tracking and tracing of cannabis prod22 ucts pursuant to paragraph (2). 

23 (B) GOOD FAITH CONSULTATION WITH IN24 DIAN TRIBES.—In issuing regulations under 

25 subparagraph (A), the Secretary, acting 


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1 through the Administrator of the Alcohol, To2 bacco, and Cannabis Tax and Trade Bureau 

3 and in coordination with the Secretary of 

4 Health and Human Services, shall conduct good 

5 faith, meaningful, and timely consultations with 

6 Indian Tribes. 

7 (2) REGULATIONS CONCERNING RECORD8 KEEPING FOR TRACKING AND TRACING.— 

9 (A) IN GENERAL.—The Secretary shall 

10 promulgate regulations regarding the establish11 ment and maintenance of records by any person 

12 who manufactures, processes, transports, dis13 tributes, receives, packages, holds, exports, or 

14 imports cannabis products. 

15 (B) INSPECTION.—In promulgating the 

16 regulations described in subparagraph (A), the 

17 Secretary shall consider which records are need18 ed for inspection to monitor the movement of 

19 cannabis products from the point of production 

20 through distribution to retail outlets to assist in 

21 investigating potential illicit trade, smuggling, 

22 or counterfeiting of cannabis products. 

23 (C) CODES.—The Secretary may require 

24 codes on the labels of cannabis products or 

25 other designs or devices for the purpose of 


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1 tracking or tracing the cannabis product 

2 through the distribution system. 

3 (D) SIZE OF BUSINESS.—The Secretary 

4 shall take into account the size of a business in 

5 promulgating regulations under this section. 

6 (E) RECORDKEEPING BY RETAILERS.— 

7 The Secretary shall not require any retailer to 

8 maintain records relating to individual pur9 chasers of cannabis products for personal con10 sumption. 

11 (3) RECORDS INSPECTION.— 

12 (A) IN GENERAL.—If the Secretary has a 

13 reasonable belief that a cannabis product is 

14 part of an illicit trade or smuggling or is a 

15 counterfeit product, each person who manufac16 tures, processes, transports, distributes, re17 ceives, holds, packages, exports, or imports can18 nabis products shall, at the request of an officer 

19 or employee duly designated by the Secretary, 

20 permit such officer or employee, at reasonable 

21 times and within reasonable limits and in a rea22 sonable manner, upon the presentation of ap23 propriate credentials and a written notice to 

24 such person, to have access to and copy all 

25 records (including financial records) relating to 


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1 such article that are needed to assist the Sec2 retary in investigating potential illicit trade, 

3 smuggling, or counterfeiting of cannabis prod4 ucts. The Secretary shall not authorize an offi5 cer or employee of the government of any of the 

6 several States to exercise authority under the 

7 preceding sentence on Indian country without 

8 the express written consent of the Indian Tribe 

9 involved. 

10 (B) FAILURE TO COMPLY.— 

11 (i) COMPEL INSPECTIONS.—The dis12 trict courts of the United States shall have 

13 the authority, pursuant to a civil action 

14 brought by the Secretary, to compel access 

15 by any officer or employee duly designated 

16 by the Secretary to any relevant records 

17 described in subparagraph (A). 

18 (ii) PENALTY.—Any person who— 

19 (I) denies access to any relevant 

20 records described in subparagraph (A) 

21 to any officer or employee duly des22 ignated by the Secretary; or 

23 (II) fails to comply with an order 

24 issued by a district court pursuant to 

25 clause (i), 


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1 shall be fined not more than $10,000. 

2 (4) KNOWLEDGE OF ILLEGAL TRANSACTION.— 

3 (A) NOTIFICATION.—If the manufacturer 

4 or distributor of a cannabis product has knowl5 edge which reasonably supports the conclusion 

6 that a cannabis product manufactured or dis7 tributed by such manufacturer or distributor 

8 that has left the control of such person may be 

9 or has been— 

10 (i) imported, exported, distributed, or 

11 offered for sale in interstate commerce by 

12 a person without paying duties or taxes re13 quired by Federal, Tribal, or State law; or 

14 (ii) imported, exported, distributed, or 

15 diverted for possible illicit marketing, 

16 the manufacturer or distributor shall promptly 

17 notify the Attorney General and the Secretary 

18 of such knowledge. 

19 (B) KNOWLEDGE DEFINED.—For purposes 

20 of this paragraph, the term ‘‘knowledge’’ as ap21 plied to a manufacturer or distributor means— 

22 (i) the actual knowledge that the man23 ufacturer or distributor had; or 

24 (ii) the knowledge which a reasonable 

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1 cumstances or which would have been ob2 tained upon the exercise of due care. 

3 (5) CONSULTATION.—In carrying out this sub4 section, the Secretary shall consult with the Attor5 ney General and the Commissioner of Food and 

6 Drugs, as appropriate. 

7 (6) CONSIDERATION OF STATE AND OTHER

8 PRECEDENT.—In promulgating the regulations de9 scribed in this subsection, the Secretary shall con10 sider— 

11 (A) recommendations and findings by the 

12 Cannabis Products Advisory Committee estab13 lished under section 1111 of the Federal Food, 

14 Drug, and Cosmetic Act; 

15 (B) current practices of States regarding 

16 cannabis and the practices of other regulated 

17 industries; and 

18 (C) whether, during the 3-year period de19 scribed in section 505(b)(1), unique standards 

20 for cannabis specified for medical use under 

21 State law are necessary or appropriate. 


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1 TITLE II—RESEARCH, TRAINING, 

2 AND PREVENTION 

3 Subtitle A—Public Health and 

4 Biomedical Research 

5 SEC. 201. SOCIETAL IMPACT OF CANNABIS LEGALIZATION 

6 STUDY. 

7 (a) IN GENERAL.—The Comptroller General of the 

8 United States shall conduct an evaluation of the societal 

9 impact of the legalization by States of adult-use of can10 nabis. Such evaluation shall address, where information 

11 and data are available, a review of the following: 

12 (1) Federal and State law enforcement activi13 ties, including— 

14 (A) arrests related to illicit use, possession, 

15 production, manufacture, and distribution of 

16 cannabis; and 

17 (B) diversion and seizures of cannabis. 

18 (2) Employment and the receipt of Federal wel19 fare assistance. 

20 (3) Changes in the utilization of health care, in21 cluding hospitalization related to methamphetamine 

22 and narcotic use and the use of cannabis for medical 

23 purposes. 

24 (4) Analysis of tax revenue remitted to States 

25 resulting from legal cannabis sales. 


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1 (5) Any additional areas identified by the 

2 Comptroller General of the United States. 

3 (b) REPORT.—The Comptroller General of the 

4 United States— 

5 (1) not later than 2 years after the date of en6 actment of this Act, shall brief the Committee on Fi7 nance, the Committee on Health, Education, Labor, 

8 and Pensions, and the Committee on the Judiciary 

9 of the Senate and the Committee on Ways and 

10 Means, the Committee on Energy and Commerce, 

11 and the Committee on the Judiciary of the House of 

12 Representatives on the preliminary findings of the 

13 evaluation under subsection (a); and 

14 (2) at a date agreed upon at the time of the 

15 preliminary briefing described in paragraph (1), sub16 mit a final report to such committees. 

17 SEC. 202. BIOMEDICAL RESEARCH ON CANNABIS. 

18 (a) IN GENERAL.—The Secretary of Health and 

19 Human Services (referred to in this section as the ‘‘Sec20 retary’’), in consultation with the Director of the National 

21 Institutes of Health, shall conduct or support research on 

22 the impacts of cannabis. 

23 (b) TOPICS.—The research conducted or supported 

24 under subsection (a) may include research on— 


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1 (1) the effects of tetrahydrocannabinol on the 

2 human brain; 

3 (2) the efficacy of cannabis as a treatment for 

4 specific diseases and conditions, including any im5 pact on chronic pain and post-traumatic stress dis6 order; 

7 (3) the impact of the use of cannabis on— 

8 (A) pulmonary function; 

9 (B) cardiovascular events; 

10 (C) cancer, including testicular, ovarian, 

11 transitional cell, and head, neck, and oral can12 cers, and chronic illnesses; 

13 (D) mania; 

14 (E) psychosis; 

15 (F) cognitive effects; and 

16 (G) cannabinoid hyperemesis syndrome; 

17 and 

18 (4) the identification of additional medical ben19 efits, harms, and uses of cannabis. 

20 (c) CONSIDERATIONS.—In conducting or supporting 

21 the research under subsection (a), the Secretary may con22 sider— 

23 (1) varying forms of cannabis, including— 

24 (A) full plants and extracts; and 


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1 (B) different types of cannabis with signifi2 cant variation in phenotypic traits and various 

3 ratios of tetrahydrocannabinol and cannabidiol 

4 in chemical composition; and 

5 (2) varying methods of cannabis delivery, in6 cluding combustible and non-combustible inhalation 

7 and ingestion. 

8 (d) ANNUAL REPORTS.—Not later than 18 months 

9 after the date of enactment of this Act, and annually 

10 thereafter for the next 4 years, the Secretary shall submit 

11 to the Committee on Health, Education, Labor, and Pen12 sions and the Committee on Appropriations of the Senate 

13 and the Committee on Energy and Commerce and the 

14 Committee on Appropriations of the House of Representa15 tives, a report that includes an overview of the research 

16 conducted and supported under this section. 

17 (e) FUNDING.—In addition to amounts otherwise 

18 available, there is appropriated, out of any funds in the 

19 Treasury not otherwise appropriated, $200,000,000 for 

20 each of fiscal years 2023 through 2027 to carry out this 

21 section. 

22 SEC. 203. PUBLIC HEALTH SURVEILLANCE AND DATA COL23 LECTION. 

24 (a) IN GENERAL.—Section 392A of the Public 

25 Health Service Act (42 U.S.C. 280b–1) is amended— 


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1 (1) in the section heading, by inserting ‘‘AND

2 ADVERSE HEALTH EFFECTS OF CANNABIS

3 USE’’ after ‘‘SUBSTANCES’’; 

4 (2) in subsection (a)— 

5 (A) in paragraph (2)— 

6 (i) in subparagraph (C) by inserting 

7 ‘‘and adverse health effects of cannabis 

8 use’’ before the period; and 

9 (ii) in subparagraph (D) by inserting 

10 ‘‘, cannabis, and polysubstance use’’ before 

11 the period; and 

12 (B) in paragraph (4), by inserting ‘‘and 

13 collect data to better understand the use and 

14 health effects of cannabis, stimulants, and 

15 polysubstances, and’’ after ‘‘conduct studies 

16 and evaluations’’; 

17 (3) in subsection (d), by striking 

18 ‘‘$496,000,000 for each of fiscal years 2019 through 

19 2023’’ and inserting ‘‘$596,000,000 for each of fis20 cal years 2023 through 2027’’; and 

21 (4) by adding at the end the following: 

22 ‘‘(e) ADDITIONAL FUNDING.—In addition to amounts 

23 otherwise available, there is appropriated, out of any funds 

24 in the Treasury not otherwise appropriated, $100,000,000 


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1 for each of fiscal years 2023 through 2027 to carry out 

2 this section.’’. 

3 SEC. 204. AWARDS TO PREVENT UNDERAGE CANNABIS USE. 

4 Part D of title V of the Public Health Service Act 

5 (42 U.S.C. 290dd et seq.) is amended by adding at the 

6 end the following: 

7 ‘‘SEC. 553. AWARDS TO PREVENT UNDERAGE CANNABIS 

8 USE. 

9 ‘‘(a) IN GENERAL.—The Secretary, acting through 

10 the Assistant Secretary, shall award grants, contracts, and 

11 cooperative agreements to eligible entities to prevent and 

12 reduce underage cannabis use. 

13 ‘‘(b) ELIGIBLE ENTITIES.—To receive an award 

14 under this section, an entity shall be a State, political sub15 division of a State, Indian Tribe or Tribal organization, 

16 an urban Indian organization, a nonprofit community17 based organization, or any other nonprofit entity the Sec18 retary determines appropriate. 

19 ‘‘(c) USE OF FUNDS.—An eligible entity receiving an 

20 award under this subsection shall use funds from such 

21 award to— 

22 ‘‘(1) establish, enhance, and support culturally23 and linguistically-appropriate programs, including 

24 community-based, school-based, and higher-edu25 cation based programs, and programs that target 


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1 youth within the juvenile justice and child welfare 

2 systems, that offer screening, prevention, early inter3 vention, diagnosis, treatment, referral, and recovery 

4 support services related to underage cannabis use; 

5 ‘‘(2) design, test, evaluate, and disseminate evi6 dence-based and evidence-informed strategies to 

7 maximize the effectiveness of community-wide ap8 proaches to preventing and reducing underage can9 nabis use; 

10 ‘‘(3) educate children, adolescents, youth, par11 ents, health care providers, and communities about 

12 the dangers of underage cannabis use, including im13 paired driving due to cannabis use; 

14 ‘‘(4) collect data on underage cannabis use to 

15 identify and address needs, service gaps, and trends; 

16 ‘‘(5) strengthen collaboration among commu17 nities, the Federal Government, and State, local, 

18 and Tribal governments to prevent underage can19 nabis use; 

20 ‘‘(6) address community norms regarding un21 derage cannabis use, reduce opportunities for under22 age cannabis use, and reduce the prevalence of nega23 tive consequences associated with underage cannabis 

24 use; and 


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1 ‘‘(7) support other evidence-based and evidence2 informed practices to reduce underage cannabis use, 

3 as determined by the Secretary. 

4 ‘‘(d) SUPPLEMENT NOT SUPPLANT.—Funds award5 ed under this section shall supplement, and not supplant, 

6 existing State, Federal, local, and Tribal funds to prevent 

7 and reduce underage cannabis use. 

8 ‘‘(e) PRIORITY CONSIDERATION.—In making awards 

9 under this section, the Secretary shall give priority to eligi10 ble entities that serve medically underserved communities, 

11 communities with high rates of underage cannabis use, 

12 and communities that have historically experienced dis13 proportionate arrest and conviction rates related to the 

14 sale, possession, use, manufacture, or cultivation of can15 nabis (but not counting convictions involving distribution 

16 of cannabis to a minor). 

17 ‘‘(f) FUNDING.—In addition to amounts otherwise 

18 available, there is appropriated, out of any funds in the 

19 Treasury not otherwise appropriated, $15,000,000 for 

20 each of fiscal years 2023 through 2027 to carry out this 

21 section. 

22 ‘‘(g) DEFINITIONS.—For the purposes of this sec23 tion— 

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1 tion 4 of the Indian Self-Determination and Edu2 cation Assistance Act; and 

3 ‘‘(2) the term ‘urban Indian organization’ has 

4 the meaning given such term in section 4 of the In5 dian Health Care Improvement Act.’’. 

6 SEC. 205. NATIONAL MEDIA CAMPAIGNS ON CANNABIS USE. 

7 (a) IN GENERAL.—The Secretary of Health and 

8 Human Services (referred to in this section as the ‘‘Sec9 retary’’), in consultation with the Administrator of the 

10 National Highway Traffic Safety Administration, shall 

11 fund and oversee the production, broadcasting, and eval12 uation of a national public service media campaign to pre13 vent and reduce underage cannabis use and cannabis im14 paired driving. Such campaign shall— 

15 (1) educate the public about— 

16 (A) the negative consequences of underage 

17 cannabis use and cannabis impaired driving; 

18 and 

19 (B) the public health and safety benefits of 

20 evidence-based and evidence-informed policies to 

21 reduce underage cannabis use and cannabis im22 paired driving, and build community and paren23 tal support for, and cooperation with, enforce24 ment of such policies; and 

25 (2) be conducted— 


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1 (A) through multiple media sources; 

2 (B) in a manner that is culturally and lin3 guistically appropriate; and 

4 (C) in a manner that reflects best practices 

5 in public health communication, including in ac6 cessible formats. 

7 (3) CONSULTATION REQUIREMENT.—In car8 rying out the campaign under this subsection, the 

9 Secretary shall consult with interested parties, in10 cluding medical, public health, consumer, parent, 

11 disability, law enforcement, community-based, and 

12 other stakeholders, as determined by the Secretary. 

13 (b) EDUCATION AND AWARENESS CAMPAIGN FOR

14 CANNABIS USE.—The Secretary, in coordination with the 

15 heads of other appropriate departments and agencies and 

16 working through existing programs and activities, as ap17 propriate, shall advance the education and awareness of 

18 the public (including health care providers, consumers, 

19 workplaces, and other appropriate entities) regarding can20 nabis use. The education and awareness campaigns under 

21 this subsection shall address— 

22 (1) any dangers and negative consequences of 

23 cannabis use; 

24 (2) awareness and prevention of cannabis use 

25 disorder; 


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1 (3) the effects of cannabis on the human body, 

2 including with respect to the use of cannabis in dif3 ferent circumstances such as the workplace and 

4 while operating motor vehicles; 

5 (4) the effects of cannabis when mixed with 

6 other substances; and 

7 (5) other relevant public health or biomedical 

8 research, as the Secretary determines appropriate. 

9 (c) REPORT TO CONGRESS.—The Secretary shall 

10 submit an annual report to the Committee on Health, 

11 Education, Labor, and Pensions of the Senate and the 

12 Committee on Energy and Commerce of the House of 

13 Representatives detailing the production, broadcasting, 

14 and evaluation of the campaigns under subsections (a) and 

15 (b). Such reports shall include— 

16 (1) details regarding the effectiveness of such 

17 campaigns in reducing underage cannabis use; 

18 (2) the need for, and likely effectiveness of, an 

19 expanded campaign under either such subsection; 

20 and 

21 (3) details regarding the consultation the Sec22 retary engaged in pursuant to subsection (a)(2). 

23 (d) FUNDING.—In addition to amounts otherwise 

24 available, there is appropriated, out of any funds in the 

25 Treasury not otherwise appropriated, $5,000,000 for each 


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1 of fiscal years 2023 through 2027 to carry out this sec2 tion. 

3 SEC. 206. INCREASING AVAILABILITY OF CANNABIS PROD4 UCTS FOR RESEARCH PURPOSES. 

5 (a) IN GENERAL.—The Secretary of Health and 

6 Human Services (referred to in this section as the ‘‘Sec7 retary’’), acting through the Director of the National In8 stitutes of Health and in collaboration with the Commis9 sioner of Food and Drugs and the Attorney General, shall 

10 take steps to increase the availability and diversity of re11 search grade cannabis products for intramural and extra12 mural research activities, including cannabis products with 

13 varied cannabinoid concentrations and cannabis products 

14 that reflect regional differences in products available to 

15 be sold directly to consumers. 

16 (b) GUIDANCE.—In carrying out subsection (a), the 

17 Secretary may develop guidance clarifying how entities en18 gaged in extramural research supported by the Federal 

19 Government may access cannabis products available to be 

20 sold directly to consumers. 

21 (c) CONGRESSIONAL BRIEFING.—Not later than 1 

22 year after the date of enactment of this Act, the Secretary 

23 shall brief the Committee on Health, Education, Labor, 

24 and Pensions and the Committee on the Judiciary of the 

25 Senate and the Committee on Energy and Commerce and 


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1 the Committee on the Judiciary of the House of Rep2 resentatives on the activities under subsection (a). 

3 (d) FUNDING.—In addition to amounts otherwise 

4 available, there is appropriated, out of any funds in the 

5 Treasury not otherwise appropriated, $275,000,000 for 

6 each of fiscal years 2023 through 2027 to carry out this 

7 section. 

8 SEC. 207. TRANS-NIH CANNABIS CONSORTIUM. 

9 Part A of title IV of the Public Health Service Act 

10 (42 U.S.C. 281 et seq.) is amended by inserting at the 

11 end the following: 

12 ‘‘SEC. 404O. TRANS-NIH CANNABIS CONSORTIUM. 

13 ‘‘(a) ESTABLISHMENT.—The Director of NIH shall 

14 establish and maintain a consortium to be known as the 

15 Trans-NIH Cannabis Research Consortium (referred to in 

16 this section as the ‘Consortium’) to coordinate cannabis 

17 research programs across the National Institutes of 

18 Health. 

19 ‘‘(b) MEMBERSHIP.—The members of the Consor20 tium shall be appointed by the Director of NIH and con21 sist of representatives of multiple national research insti22 tutes and national centers. 

23 ‘‘(c) CHAIR.—The Chair of the Consortium shall be 

24 the Director of the National Institute on Drug Abuse (or 

25 the Director’s designee). 


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1 ‘‘(d) DUTIES.—In coordinating cannabis research 

2 programs across the National Institutes of Health, the 

3 Consortium shall— 

4 ‘‘(1) establish cannabis research priorities; 

5 ‘‘(2) identify gaps and opportunities for re6 search collaborations involving multiple national re7 search institutes and national centers; and 

8 ‘‘(3) identify opportunities to develop the next 

9 generation of cannabis researchers. 

10 ‘‘(e) CONSULTATION.—The Consortium shall consult 

11 regularly with external experts in the field of cannabis re12 search, as appropriate, including industry, patient organi13 zations, and other stakeholders. 

14 ‘‘(f) REPORTING.—No later than 1 year after the 

15 date of enactment of the Cannabis Administration and 

16 Opportunity Act, and every 2 years thereafter, the Consor17 tium shall submit to the Committee on Health, Education, 

18 Labor, and Pensions of the Senate and the Committee on 

19 Energy and Commerce of the House of Representatives, 

20 and make publicly available on the website of the National 

21 Institutes of Health, a report on— 

22 ‘‘(1) any research project involving cannabis 

23 and involving more than one national research insti24 tute or national center that was supported during 

25 the review period; 


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1 ‘‘(2) any strategic initiatives that include a sig2 nificant component related to cannabis; 

3 ‘‘(3) career development awards for early-career 

4 researchers focused in cannabis research, including 

5 specific numbers of awards and amount of funding, 

6 made during the review period; 

7 ‘‘(4) details on the composition of awards for 

8 early-career researchers, including demographic de9 tails indicating the proportion of recipients from 

10 populations that have been underrepresented in can11 nabis research; and 

12 ‘‘(5) such other information as the Director of 

13 NIH determines appropriate.’’. 

14 SEC. 208. CANNABIS RESEARCH INTERAGENCY ADVISORY 

15 COMMITTEE. 

16 (a) IN GENERAL.—There is established within the 

17 Department of Health and Human Services a Cannabis 

18 Research Interagency Advisory Committee (referred to in 

19 this subsection as the ‘‘Advisory Committee’’) for purposes 

20 of coordinating— 

21 (1) Federal research activities relating to can22 nabis; and 

23 (2) aspects of all Federal programs and activi24 ties relating to cannabis research, in order to ensure 

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1 grams and activities, to minimize barriers to such 

2 programs and activities, to provide for the full com3 munication and exchange of information necessary 

4 to maintain adequate coordination of such programs 

5 and activities. 

6 (b) MEMBERS.—The Advisory Committee established 

7 under subsection (a) shall consist of the heads of the fol8 lowing agencies or their designees: 

9 (1) The National Institutes of Health. 

10 (2) The Centers for Disease Control and Pre11 vention. 

12 (3) The Food and Drug Administration. 

13 (4) The Substance Abuse and Mental Health 

14 Services Administration. 

15 (5) The Office of the Assistant Secretary of 

16 Health. 

17 (6) The Office of Minority Health. 

18 (7) The Drug Enforcement Administration. 

19 (8) The Alcohol, Tobacco, and Cannabis Tax 

20 and Trade Bureau (as so redesignated by section 

21 102 of this Act). 

22 (9) The Department of Transportation. 

23 (10) Any other agency with subject matter ex24 pertise that the Secretary of Health and Human 


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1 Services determines appropriate to advance research 

2 on cannabis. 

3 (c) RESPONSIBILITIES.—In carrying out its duties 

4 under this section, the Advisory Committee shall— 

5 (1) monitor cannabis research across all rel6 evant Federal departments and agencies, including 

7 coordination of Federal activities with respect to 

8 cannabis; 

9 (2) develop a summary of advances in cannabis 

10 research; 

11 (3) identify barriers to conducting or sup12 porting cannabis research; 

13 (4) make recommendations to the Secretary of 

14 Health and Human Services regarding any appro15 priate changes to such activities; 

16 (5) make recommendations to the Secretary of 

17 Health and Human Services regarding public par18 ticipation in decisions relating to cannabis research, 

19 and the process by which public feedback can be bet20 ter integrated into such decisions; 

21 (6) develop a strategic plan for the conduct of, 

22 and support for, cannabis research, which shall in23 clude— 

24 (A) proposed budgetary requirements; and 


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1 (B) recommendations to ensure that can2 nabis research of the Department of Health and 

3 Human Services and of other Federal depart4 ments and agencies are not unnecessarily dupli5 cative; and 

6 (7) submit to Congress and the President— 

7 (A) an annual update on the summary of 

8 advances described in paragraph (2); and 

9 (B) an annual update to the strategic plan 

10 described in paragraph (5), including any 

11 progress made in achieving the goals outlined in 

12 such strategic plan. 

13 SEC. 209. AWARDS FOR CANNABIS RESEARCH. 

14 (a) IN GENERAL.—The Secretary of Health and 

15 Human Services (referred to in this section as the ‘‘Sec16 retary’’) shall award grants, contracts, or cooperative 

17 agreements to public and nonprofit entities (including con18 sortiums of such entities) to conduct or support research 

19 on short- and long-term health effects of cannabis, consid20 ering beneficial and harmful effects and public health im21 pacts. Such research may— 

22 (1) consider the etiology, epidemiology, and 

23 health effects of cannabis use in at-risk or under re24 searched populations, such as pediatric and older 

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1 nant and lactating women and their infants and chil2 dren, and heavy cannabis users; 

3 (2) consider the pharmacokinetic and 

4 pharmacodynamic properties of cannabis, modes of 

5 delivery, different concentrations, in various popu6 lations, including the dose-response relationships of 

7 cannabis and tetrahydrocannabinol or other 

8 cannabinoids; 

9 (3) consider the harms and benefits associated 

10 with understudied cannabis products, such as 

11 edibles, concentrates, and topical products; 

12 (4) consider the short- and long-term harms 

13 and benefits associated with exposure to chemicals 

14 and other products commonly involved in the grow15 ing, possessing, and selling of cannabis; 

16 (5) utilize clinical trials on the potential bene17 ficial and harmful health effects of using different 

18 forms of cannabis, such as inhaled whole cannabis 

19 plant and oral cannabis; 

20 (6) seek to characterize the health effects of 

21 cannabis on unstudied and understudied health 

22 endpoints, such as epilepsy in pediatric populations, 

23 symptoms of posttraumatic stress disorder, child24 hood and adult cancers, cannabis-related overdoses 


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1 and poisonings, and other high-priority health 

2 endpoints; and 

3 (7) provide support for the development of 

4 novel diagnostic technologies that allow for rapid, 

5 accurate, and noninvasive assessment of cannabis 

6 exposure and impairment. 

7 (b) APPLICATION.—To be eligible to receive an award 

8 under this section, an entity shall submit an application 

9 to the Secretary at such time, in such manner, and con10 taining such information as the Secretary may require. 

11 (c) PRIORITY.—In selecting award recipients under 

12 this section, the Secretary shall give priority to any entity 

13 that is a minority-serving institution (defined, for pur14 poses of this subsection, as an institution and program 

15 described in section 326(e)(1) of the Higher Education 

16 Act of 1965 (20 U.S.C. 1063b(e)(1)) and institution de17 scribed in section 371(a) of such Act (20 U.S.C. 

18 1067q(a))). 

19 (d) CONSIDERATIONS.—In making awards under this 

20 section, the Secretary, to the extent practicable, may en21 sure equitable distribution of awards among the geo22 graphical regions of the United States. 

23 (e) REPORTING.— 

24 (1) REPORTS FROM ENTITIES.—Each entity, or 

25 consortium of such entities, that receives an award 


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1 under this section shall submit an annual report to 

2 the Secretary on the activities conducted under such 

3 award, and other information as the Secretary may 

4 require. 

5 (2) REPORT TO CONGRESS.—Not later than 5 

6 years after the date of enactment of this Act and 

7 every 5 years thereafter, the Secretary shall submit 

8 to the Committee on Health, Education, Labor, and 

9 Pensions of the Senate and the Committee on En10 ergy and Commerce of the House of Representatives 

11 a report that provides a summary of the activities 

12 associated with awards made under this section. 

13 (3) PUBLIC AVAILABILITY.—The Secretary 

14 shall make reports submitted under paragraph (2) 

15 publicly available on the website of the Department 

16 of Health and Human Services. 

17 (f) FUNDING.—In addition to amounts otherwise 

18 available, there is appropriated, out of any funds in the 

19 Treasury not otherwise appropriated, $200,000,000 for 

20 each of fiscal years 2023 through 2027 to carry out this 

21 section. 


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1 SEC. 210. DEPARTMENT OF VETERANS AFFAIRS CLINICAL 

2 TRIALS ON THE EFFECTS OF CANNABIS ON 

3 CERTAIN HEALTH OUTCOMES OF VETERANS 

4 WITH CHRONIC PAIN AND POST-TRAUMATIC 

5 STRESS DISORDER. 

6 (a) CLINICAL TRIALS REQUIRED.— 

7 (1) IN GENERAL.—The Secretary of Veterans 

8 Affairs shall carry out a series of clinical trials on 

9 the effects of medical-grade cannabis on the health 

10 outcomes of covered veterans diagnosed with chronic 

11 pain and covered veterans diagnosed with post-trau12 matic stress disorder. 

13 (2) REQUIRED ELEMENTS.—The clinical trials 

14 required by paragraph (1) shall include— 

15 (A) with respect to covered veterans diag16 nosed with chronic pain, an evaluation of the 

17 effects of the use of cannabis on— 

18 (i) osteopathic pain (including pain in19 tensity and pain-related outcomes); 

20 (ii) the reduction or increase in opioid 

21 use or dosage; 

22 (iii) the reduction or increase in 

23 benzodiazepine use or dosage; 

24 (iv) the reduction or increase in alco25 hol use; 

26 (v) inflammation; 


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1 (vi) sleep quality; 

2 (vii) agitation; and 

3 (viii) quality of life; and 

4 (B) with respect to covered veterans diag5 nosed with post-traumatic stress disorder, an 

6 evaluation of the effects of the use of cannabis 

7 on— 

8 (i) the symptoms of post-traumatic 

9 stress disorder (PTSD) as established by 

10 or derived from the clinician administered 

11 PTSD scale, the PTSD checklist, the 

12 PTSD symptom scale, the post-traumatic 

13 diagnostic scale, and other applicable 

14 methods of evaluating symptoms of post15 traumatic stress disorder; 

16 (ii) the reduction or increase in 

17 benzodiazepine use or dosage; 

18 (iii) the reduction or increase in alco19 hol use; 

20 (iv) mood; 

21 (v) anxiety; 

22 (vi) social functioning; 

23 (vii) agitation; 

24 (viii) suicidal ideation; and 


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1 (ix) sleep quality, including frequency 

2 of nightmares and night terrors. 

3 (3) OPTIONAL ELEMENTS.—The clinical trials 

4 required by paragraph (1) may include an evaluation 

5 of the effects of the use of cannabis to treat chronic 

6 pain and post-traumatic stress disorder on— 

7 (A) pulmonary function; 

8 (B) cardiovascular events; 

9 (C) head, neck, and oral cancer; 

10 (D) testicular cancer; 

11 (E) ovarian cancer; 

12 (F) transitional cell cancer; 

13 (G) intestinal inflammation; 

14 (H) motor vehicle accidents; 

15 (I) mania; 

16 (J) psychosis; 

17 (K) cognitive effects; 

18 (L) cannabinoid hyperemesis syndrome; 

19 (M) neuropathy; 

20 (N) spasticity; 

21 (O) substance use disorder; or 

22 (P) mental health disorder. 

23 (b) LONG-TERM OBSERVATIONAL STUDY.—The Sec24 retary may carry out a long-term observational study of 


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1 the participants in the clinical trials required by sub2 section (a). 

3 (c) TYPE OF CANNABIS.— 

4 (1) IN GENERAL.—In carrying out the clinical 

5 trials required by subsection (a), the Secretary shall 

6 study varying forms of cannabis, including whole 

7 plant raw material and extracts. 

8 (2) PLANT CULTIVARS.—Of the varying forms 

9 of cannabis required under paragraph (1), the Sec10 retary shall study not fewer than seven unique plant 

11 cultivars with ratios of tetrahydrocannabinol to 

12 cannabidiol in each of the following categories: 

13 (A) Less than 1:5. 

14 (B) Between 1:2 and 1:5. 

15 (C) Approximately 1:2. 

16 (D) Approximately 1:1. 

17 (E) Approximately 2:1. 

18 (F) Between 2:1 and 5:1. 

19 (G) More than 5:1. 

20 (d) USE OF CONTROL AND EXPERIMENTAL

21 GROUPS.—The clinical trials required by subsection (a) 

22 shall include both a control group and an experimental 

23 group that shall— 

24 (1) be of similar size and structure; and 


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1 (2) represent the demographics of the veteran 

2 population, as determined by the most recent data 

3 from the American Community Survey of the Bu4 reau of the Census that is available prior to the 

5 commencement of the clinical trials. 

6 (e) LIMITATION ON ENROLLMENT OF CERTAIN VET7 ERANS.—In enrolling veterans in a clinical trial under sub8 section (a), the Secretary shall avoid enrolling veterans 

9 who— 

10 (1) have existing substance use disorder or are 

11 at high-risk for developing substance use disorder; or 

12 (2) have contraindications to medicinal can13 nabis, which may include— 

14 (A) veterans with acute psychosis or at15 risk of psychosis; 

16 (B) veterans for whom cannabis is contra17 indicated based on current medications taken, 

18 prescribed and nonprescribed; 

19 (C) veterans with severe cardiovascular, 

20 immunological, liver, or kidney disease; and 

21 (D) veterans who are pregnant or 

22 breastfeeding. 

23 (f) DATA PRESERVATION.—The clinical trials re24 quired by subsection (a) shall include a mechanism to en25 sure the preservation of all data, including all data sets, 


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1 collected or used for purposes of such trials in a manner 

2 that will facilitate further research. 

3 (g) IMPLEMENTATION.—Not later than 180 days 

4 after the date of the enactment of this Act, the Secretary 

5 shall— 

6 (1) develop a plan to implement this section 

7 and submit such plan to the Committee on Veterans’ 

8 Affairs of the Senate and the Committee on Vet9 erans’ Affairs of the House of Representatives; and 

10 (2) issue any requests for proposals the Sec11 retary determines appropriate for such implementa12 tion. 

13 (h) EFFECT ON OTHER BENEFITS.—The eligibility 

14 or entitlement of a covered veteran to any other benefit 

15 under the laws administered by the Secretary or any other 

16 provision of law shall not be affected by the participation 

17 of the covered veteran in a clinical trial under subsection 

18 (a) or a study under subsection (b). 

19 (i) PERIODIC REPORTS.—During the five-year period 

20 beginning on the date of the enactment of this Act, the 

21 Secretary shall submit periodically, but not less frequently 

22 than annually, to the Committee on Veterans’ Affairs of 

23 the Senate and the Committee on Veterans’ Affairs of the 

24 House of Representatives reports on the implementation 

25 of this section. 


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1 (j) COVERED VETERAN DEFINED.—In this section, 

2 the term ‘‘covered veteran’’ means a veteran who is en3 rolled in the patient enrollment system of the Department 

4 of Veterans Affairs established and operated under section 

5 1705(a) of title 38, United States Code. 

6 SEC. 211. CANNABIS RESEARCH INFRASTRUCTURE 

7 GRANTS. 

8 Title VIII of the Higher Education Act of 1965 (20 

9 U.S.C. 1161a et seq.) is amended by adding at the end 

10 the following: 

11 ‘‘SEC. 899. CANNABIS RESEARCH INFRASTRUCTURE GRANT 

12 PROGRAM. 

13 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

14 with the Secretary of Health and Human Services and, 

15 as appropriate, with other relevant Federal agencies, shall 

16 award grants, on a competitive basis, to institutions of 

17 higher education to enable such institutions to develop or 

18 enhance the necessary infrastructure for exploratory can19 nabis research, including the cultivation of cannabis for 

20 research purposes. 

21 ‘‘(b) APPLICATIONS.—To be qualified to receive a 

22 grant under this section, an institution of higher education 

23 shall submit an application to the Secretary at such time, 

24 in such manner, and containing such information as the 

25 Secretary may require, including— 


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1 ‘‘(1) a description of the projects that the insti2 tution of higher education plans to carry out with 

3 grant funds; and 

4 ‘‘(2) how such projects will address the research 

5 infrastructure needs of the institution of higher edu6 cation. 

7 ‘‘(c) PRIORITY IN AWARDS.—In awarding grants 

8 under this section, the Secretary shall give priority to— 

9 ‘‘(1) institutions of higher education described 

10 in section 371(a); 

11 ‘‘(2) under-resourced institutions of higher edu12 cation, including community colleges; and 

13 ‘‘(3) institutions of higher education with expe14 rience in conducting or supporting cannabis research 

15 or developing academic courses or programs for stu16 dents in the cannabis industry. 

17 ‘‘(d) USE OF FUNDS.—An institution of higher edu18 cation that receives a grant under this section shall use 

19 the grant funds to develop or enhance the necessary infra20 structure for exploratory cannabis research, including— 

21 ‘‘(1) cultivating cannabis for research purposes; 

22 ‘‘(2) purchasing, renting, or leasing scientific or 

23 laboratory equipment; 

24 ‘‘(3) constructing or upgrading cultivation or 

25 laboratory facilities; 


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1 ‘‘(4) purchasing or enhancing storage and secu2 rity needs; 

3 ‘‘(5) establishing school policies, procedures, or 

4 training to conduct or support research, such as 

5 policies and training to safely handle and store sub6 stances; 

7 ‘‘(6) paying State fees to apply for and receive 

8 certificates or registrations to handle certain sub9 stances; or 

10 ‘‘(7) recruiting or retaining staff necessary for 

11 developing or enhancing the cannabis research infra12 structure of the institution of higher education, in13 cluding for training and support purposes. 

14 ‘‘(e) AWARDS.—Notwithstanding any other provision 

15 of law, activities supported by grants under this section 

16 shall not be considered violations of section 120 for the 

17 purposes of enforcing or assessing compliance with that 

18 section. 

19 ‘‘(f) DEFINITIONS.—In this section: 

20 ‘‘(1) COMMUNITY COLLEGE.—The term ‘com21 munity college’ means— 

22 ‘‘(A) a public institution of higher edu23 cation, including additional locations, at which 

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1 nantly awarded degree, is an associate degree; 

2 or 

3 ‘‘(B) a Tribal College or University (as de4 fined in section 316). 

5 ‘‘(2) INSTITUTION OF HIGHER EDUCATION.— 

6 The term ‘institution of higher education’ has the 

7 meaning given that term in section 101. 

8 ‘‘(g) FUNDING.—In addition to amounts otherwise 

9 available, there is appropriated, out of any funds in the 

10 Treasury not otherwise appropriated, $200,000,000 for 

11 each of fiscal years 2023 through 2027 to carry out this 

12 section.’’. 

13 Subtitle B—Cannabis-Impaired 

14 Driving Prevention 

15 SEC. 221. DEFINITIONS. 

16 In this subtitle: 

17 (1) ADMINISTRATOR.—The term ‘‘Adminis18 trator’’ means the Administrator of the National 

19 Highway Traffic Safety Administration. 

20 (2) SECRETARY.—The term ‘‘Secretary’’ means 

21 the Secretary of Transportation. 

22 (3) THC.—The term ‘‘THC’’ means 

23 tetrahydrocannabinol. 

24 SEC. 222. CANNABIS-IMPAIRED DRIVING RESEARCH. 

25 (a) CANNABIS-IMPAIRED DRIVING DATA.— 


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1 (1) IN GENERAL.—The Secretary shall collect 

2 and, as appropriate, share with the Secretary of 

3 Health and Human Services, data relating to can4 nabis-impaired driving, or a combination of cannabis 

5 and another substance, including through the collec6 tion of crash data specific to crashes involving driv7 ers with— 

8 (A) THC in their system; or 

9 (B) a combination of THC and another 

10 substance in their system. 

11 (2) NATIONAL ROADSIDE SURVEY.— 

12 (A) IN GENERAL.—Not later than 1 year 

13 after the date of enactment of this Act, the Ad14 ministrator shall initiate a National Roadside 

15 Survey to collect data on drivers with THC in 

16 their system. 

17 (B) REPORT.—Not later than 3 years after 

18 the date of enactment of this Act, the Secretary 

19 shall submit to the Committees on Commerce, 

20 Science, and Transportation, Environment and 

21 Public Works, and Health, Education, Labor, 

22 and Pensions of the Senate and the Committee 

23 on Transportation and Infrastructure of the 

24 House of Representatives a report summarizing 

25 the data acquired, and conclusions drawn, from 


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1 the National Roadside Survey required under 

2 subparagraph (A). 

3 (b) RESEARCH ON RISKS OF CANNABIS-IMPAIRED

4 DRIVING.— 

5 (1) STUDY REQUIRED.— 

6 (A) IN GENERAL.—Not later than 3 years 

7 after the date of enactment of this Act, the Sec8 retary shall carry out a study to evaluate and 

9 quantify the risks of cannabis-impaired driving. 

10 (B) REQUIREMENTS.—The study required 

11 under subparagraph (A) shall analyze— 

12 (i) whether there is an increased like13 lihood of crashing a motor vehicle after re14 cent cannabis use; 

15 (ii) the effect of cannabis on driving 

16 behavior; 

17 (iii) whether there is a correlation be18 tween THC level (as tested in oral fluids) 

19 and level of impairment; 

20 (iv) whether the current Standard 

21 Field Sobriety Test developed by the Na22 tional Highway Traffic Safety Administra23 tion accurately identifies cannabis impair24 ment; 


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1 (v) whether driving behavior changes 

2 depending on frequency of cannabis use; 

3 (vi) whether there are any potential 

4 increased risks associated with using can5 nabis together with another substance; and 

6 (vii) any other data necessary to im7 prove safe driving outcomes, as determined 

8 by the Secretary. 

9 (2) REPORT.—Not later than 3 years after the 

10 date of enactment of this Act, and annually there11 after until the date on which the study required 

12 under paragraph (1) is complete, the Secretary shall 

13 submit to the Committees on Commerce, Science, 

14 and Transportation, Environment and Public Works, 

15 and Health, Education, Labor, and Pensions of the 

16 Senate and the Committee on Transportation and 

17 Infrastructure of the House of Representatives a re18 port summarizing the data acquired, and conclusions 

19 drawn, from the study required under paragraph 

20 (1). 

21 SEC. 223. DOT CANNABIS-IMPAIRED DRIVING PREVENTION 

22 PROGRAMS. 

23 (a) IN GENERAL.—The Secretary shall research and 

24 implement data-driven strategies to educate the public 


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1 about the dangers of cannabis-impaired driving, which 

2 shall include the following: 

3 (1) CANNABIS-IMPAIRED DRIVING USE PREVEN4 TION BEST PRACTICES.— 

5 (A) IN GENERAL.—Not later than 1 year 

6 after the date of enactment of this Act, the Sec7 retary shall develop and issue best practices for 

8 States and communities to prevent cannabis-im9 paired driving, including impaired driving in10 volving the use of cannabis and another sub11 stance and practices targeting drivers under the 

12 age of 21, in consultation with the Director of 

13 the Centers for Disease Control and Prevention, 

14 the Secretary of Health and Human Services, 

15 and the heads of other Federal agencies as ap16 propriate. 

17 (B) UPDATES.—Not less frequently than 

18 biannually, the Secretary shall update and re19 issue the best practices required under subpara20 graph (A) as new research and data becomes 

21 available. 

22 (2) CANNABIS-IMPAIRED DRIVING USE PREVEN23 TION CAMPAIGNS.—Not later than 2 years after the 

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1 tablish and carry out national campaigns to prevent 

2 cannabis-impaired driving, including— 

3 (A) cannabis-impaired driving involving the 

4 use of cannabis and another substance; and 

5 (B) cannabis-impaired driving among driv6 ers under the age of 21. 

7 (b) CAMPAIGN EVALUATION.—Not less frequently 

8 than once every 3 years, the Secretary shall evaluate the 

9 effectiveness of the campaigns required under subsection 

10 (a)(2) and the activities carried out by States using a 

11 grant awarded under section 409 of title 23, United States 

12 Code, by using a variety of factors, including— 

13 (1) collecting data, including behavioral data, 

14 and comparing that data from before and after the 

15 campaigns; 

16 (2)(A) engaging with stakeholders that were in17 volved in the campaigns; and 

18 (B) analyzing feedback from those stakeholders 

19 on what the stakeholders saw as strengths and 

20 weaknesses of the campaigns; 

21 (3) determining whether the campaigns accom22 plished the objectives the Secretary set out to ac23 complish through analysis of data relating to the 

24 campaigns; and 


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1 (4) any other factors the Secretary determines 

2 appropriate included in the document of the Na3 tional Highway Traffic Safety Administration enti4 tled ‘‘The Art of Appropriate Evaluation: A Guide 

5 for Highway Safety Program Managers’’ and dated 

6 December 2008 (or a successor document). 

7 (c) REPORT.—Not later than 6 months after the date 

8 on which the Secretary completes an evaluation conducted 

9 under subsection (b), the Secretary shall submit to the 

10 Committees on Commerce, Science, and Transportation, 

11 Environment and Public Works, and Health, Education, 

12 Labor, and Pensions of the Senate and the Committee on 

13 Transportation and Infrastructure of the House of Rep14 resentatives a report that— 

15 (1) summarizes the data collected and provides 

16 the analysis of the data from an evaluation con17 ducted under subsection (b); 

18 (2) includes recommendations for future im19 paired driving campaigns; and 

20 (3) includes any determinations that a national 

21 campaign or an activity carried out by a State using 

22 a grant awarded under section 409 of title 23, 

23 United States Code, is ineffective at preventing can24 nabis-impaired driving. 


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1 SEC. 224. STATE CANNABIS-IMPAIRED DRIVING PREVEN2 TION GRANT PROGRAM. 

3 (a) IN GENERAL.—Chapter 4 of title 23, United 

4 States Code, is amended by inserting after section 408 the 

5 following: 

6 ‘‘§ 409. State cannabis-impaired driving prevention 

7 grant program 

8 ‘‘(a) DEFINITIONS.—In this section: 

9 ‘‘(1) CANNABIS.—The term ‘cannabis’ has the 

10 meaning given the term in subsection (ss) of section 

11 201 of the Federal Food, Drug, and Cosmetic Act 

12 (21 U.S.C. 321). 

13 ‘‘(2) GRANT PROGRAM.—The term ‘grant pro14 gram’ means the grant program established under 

15 subsection (b). 

16 ‘‘(3) THC.—The term ‘THC’ has the meaning 

17 given the term in section 221 of the Cannabis Ad18 ministration and Opportunity Act. 

19 ‘‘(b) ESTABLISHMENT.—Not later than 1 year after 

20 the date of enactment of the Cannabis Administration and 

21 Opportunity Act, the Secretary, acting through the Ad22 ministrator of the National Highway Traffic Safety Ad23 ministration, shall establish a program to provide grants 

24 to States, in accordance with subsection (c), to implement 

25 programs to prevent impaired driving due to cannabis use. 


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1 ‘‘(c) ELIGIBILITY.—The Secretary may provide a 

2 grant under this section to any State that— 

3 ‘‘(1) describes how the State will use the grant 

4 funds in accordance with a highway safety program 

5 under section 402, including how the State will im6 plement the best practices developed by the Sec7 retary under section 223(a)(1) of the Cannabis Ad8 ministration and Opportunity Act; and 

9 ‘‘(2) agrees to provide data and information, as 

10 determined by the Secretary, to assist with the eval11 uation of the effectiveness of the eligible activities 

12 described in subsection (d). 

13 ‘‘(d) USE OF FUNDS.—A State may use a grant 

14 awarded under this section for the following activities: 

15 ‘‘(1) Enforcement activities, including— 

16 ‘‘(A) to train public safety personnel to de17 tect impaired driving due to the use of cannabis 

18 or a combination of cannabis and another sub19 stance; 

20 ‘‘(B) to increase the capacity of impaired 

21 driving toxicology testing laboratories in the 

22 State to support impaired driving investiga23 tions, including to purchase equipment, hire 

24 staff, provide training, and improve procedures, 

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1 ards to be consistent with the standards con2 tained in the document of the National Safety 

3 Council entitled ‘Recommendations for Toxi4 cological Investigation of Drug-Impaired Driv5 ing and Motor Vehicle Fatalities–2021 Update’ 

6 (or a successor document); 

7 ‘‘(C) to train for and implement impaired 

8 driving assessment programs or other tools de9 signed to increase the probability of identifying 

10 the recidivism risk of an individual convicted of 

11 driving under the influence of cannabis, or a 

12 combination of cannabis and another substance, 

13 and to determine the most effective mental 

14 health or substance abuse treatment or sanction 

15 that will reduce that risk; 

16 ‘‘(D) to develop and implement high-visi17 bility enforcement efforts relating to cannabis18 impaired driving; and 

19 ‘‘(E) for court support of high-visibility en20 forcement efforts, to train and educate criminal 

21 justice professionals (including law enforcement 

22 personnel, prosecutors, judges, and probation 

23 officers) to assist those professionals in— 

24 ‘‘(i) handling cannabis-impaired driv25 ing cases; 


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1 ‘‘(ii) hiring traffic safety resource 

2 prosecutors; 

3 ‘‘(iii) hiring judicial outreach liaisons; 

4 and 

5 ‘‘(iv) establishing driving while intoxi6 cated courts. 

7 ‘‘(2) Data collection activities, including— 

8 ‘‘(A) to collect data relating to the use of 

9 cannabis, drugs, or multiple substances by driv10 ers, including the prevalence of the use of those 

11 substances among drivers arrested for impaired 

12 driving; and 

13 ‘‘(B) to increase drug testing and report14 ing for all fatal crashes and serious injuries to 

15 better understand the scope of cannabis-im16 paired driving, or a combination of cannabis 

17 and another substance. 

18 ‘‘(3) Education activities, including— 

19 ‘‘(A) to develop and carry out educational 

20 campaigns to better educate the public about 

21 the harms associated with cannabis-impaired 

22 driving, including impaired driving associated 

23 with the use of cannabis and another substance; 

24 and 


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1 ‘‘(B) to participate in national campaigns 

2 organized by the Secretary under section 

3 223(a)(2) of the Cannabis Administration and 

4 Opportunity Act. 

5 ‘‘(e) PROHIBITION.—The Secretary may prohibit the 

6 use of grant funds for an activity described in subsection 

7 (d) if the Secretary determines that the activity is ineffec8 tive at preventing cannabis-impaired driving after con9 ducting an evaluation required under section 223(b) of the 

10 Cannabis Administration and Opportunity Act. 

11 ‘‘(f) GRANT AMOUNTS.— 

12 ‘‘(1) IN GENERAL.—The allocation of grant 

13 funds to a State under this section for a fiscal year 

14 shall be in proportion to the apportionment of funds 

15 a State receives under section 402(c)(2). 

16 ‘‘(2) REQUIREMENT.—Not less than 10 percent 

17 of the funds allocated to a State under this section 

18 shall be used to carry out activities described in sub19 section (d)(1)(B). 

20 ‘‘(g) FEDERAL SHARE.— 

21 ‘‘(1) IN GENERAL.—For the first 3 fiscal years 

22 after the date on which the grant program is estab23 lished under subsection (b), and each fiscal year 

24 thereafter for a State that meets the condition de25 scribed in paragraph (2)(B) during that fiscal year, 


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1 the Federal share of the costs of activities carried 

2 out with a grant awarded under the grant program 

3 shall be 80 percent in any fiscal year in which the 

4 State is awarded a grant. 

5 ‘‘(2) DECREASED FEDERAL SHARE.— 

6 ‘‘(A) IN GENERAL.—For any State that 

7 does not meet the condition described in sub8 paragraph (B), the Federal share of the costs 

9 of activities carried out with a grant awarded 

10 under the grant program shall be— 

11 ‘‘(i) 70 percent in the fourth fiscal 

12 year after the date on which the grant pro13 gram is established under subsection (b); 

14 ‘‘(ii) 60 percent in the fifth fiscal year 

15 after that date; and 

16 ‘‘(iii) 50 percent in the sixth fiscal 

17 year after that date and each fiscal year 

18 thereafter. 

19 ‘‘(B) CONDITION.—The condition referred 

20 to in paragraph (1) and subparagraph (A) is 

21 that the State shall implement an open con22 tainer law relating to cannabis products. 

23 ‘‘(h) FUNDING.—In addition to amounts otherwise 

24 available, there is appropriated, out of any money in the 

25 Treasury not otherwise appropriated, $45,000,000 for 


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1 each of fiscal years 2023 through 2027 to carry out this 

2 section.’’. 

3 (b) CLERICAL AMENDMENT.—The analysis for chap4 ter 4 of title 23, United States Code, is amended by insert5 ing after the item relating to section 408 the following: 

‘‘409. State cannabis-impaired driving prevention grant program.’’. 

6 SEC. 225. NATIONAL CANNABIS IMPAIRMENT STANDARD. 

7 (a) IN GENERAL.—Not later than 3 years after the 

8 date of enactment of this Act, and once every 2 years 

9 thereafter, the Secretary shall make a determination as 

10 to whether or not it is feasible to establish a national 

11 standard for determining impairment for cannabis-im12 paired driving. 

13 (b) RULEMAKING REQUIRED.—If the Secretary de14 termines that establishing a national standard relating to 

15 cannabis-impaired driving under subsection (a) is feasible, 

16 the Secretary shall, not later than 1 year after that deter17 mination, promulgate regulations establishing a model 

18 marijuana impairment standard for States. 

19 SEC. 226. FUNDING. 

20 In addition to amounts otherwise available, there is 

21 appropriated, out of any money in the Treasury not other22 wise appropriated, $30,000,000 for each of fiscal years 

23 2023 through 2027 to carry out sections 222 and 223. 


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1 TITLE III—RESTORATIVE 

2 JUSTICE AND OPPORTUNITY 

3 Subtitle A—Opportunity Trust 

4 Fund Programs 

5 SEC. 301. OPPORTUNITY TRUST FUND PROGRAMS. 

6 (a) CANNABIS JUSTICE OFFICE; COMMUNITY REIN7 VESTMENT GRANT PROGRAM.— 

8 (1) CANNABIS JUSTICE OFFICE.—Part A of 

9 title I of the Omnibus Crime Control and Safe 

10 Streets Act of 1968 (34 U.S.C. 10101 et seq.) is 

11 amended by inserting after section 109 the fol12 lowing: 

13 ‘‘SEC. 110. CANNABIS JUSTICE OFFICE. 

14 ‘‘(a) ESTABLISHMENT.—There is established within 

15 the Office of Justice Programs a Cannabis Justice Office. 

16 ‘‘(b) DIRECTOR.—The Cannabis Justice Office shall 

17 be headed by a Director who shall be appointed by the 

18 Assistant Attorney General for the Office of Justice Pro19 grams. The Director shall report to the Assistant Attorney 

20 General for the Office of Justice Programs. The Director 

21 shall award grants and may enter into compacts, coopera22 tive agreements, and contracts on behalf of the Cannabis 

23 Justice Office. The Director may not engage in any em24 ployment other than that of serving as the Director, nor 

25 may the Director hold any office in, or act in any capacity 


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1 for, any organization, agency, or institution with which the 

2 Office makes any contract or other arrangement. 

3 ‘‘(c) EMPLOYEES.— 

4 ‘‘(1) IN GENERAL.—The Director shall employ 

5 as many full-time employees as are needed to carry 

6 out the duties and functions of the Cannabis Justice 

7 Office under subsection (d). Such employees shall be 

8 exclusively assigned to the Cannabis Justice Office. 

9 ‘‘(2) INITIAL HIRES.—Not later than 6 months 

10 after the date of enactment of this section, the Di11 rector shall— 

12 ‘‘(A) hire no less than one-third of the 

13 total number of employees of the Cannabis Jus14 tice Office; 

15 ‘‘(B) no more than one-half of the employ16 ees assigned to the Cannabis Justice Office by 

17 term appointment that may after 2 years be 

18 converted to career appointment; and 

19 ‘‘(C) hire at least 1 employee to serve as 

20 a Tribal Relations Coordinator. 

21 ‘‘(3) LEGAL COUNSEL.—At least one employee 

22 hired for the Cannabis Justice Office shall serve as 

23 legal counsel to the Director and shall provide coun24 sel to the Cannabis Justice Office. 


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1 ‘‘(d) DUTIES AND FUNCTIONS.—The Cannabis Jus2 tice Office is authorized to— 

3 ‘‘(1) administer the Community Reinvestment 

4 Grant Program; and 

5 ‘‘(2) perform such other functions as the Assist6 ant Attorney General for the Office of Justice Pro7 grams may delegate, that are consistent with the 

8 statutory obligations of this section.’’. 

9 (2) COMMUNITY REINVESTMENT GRANT PRO10 GRAM.—Title I of the Omnibus Crime Control and 

11 Safe Streets Act of 1968 (34 U.S.C. 10101 et seq.) 

12 is amended by adding at the end the following: 

13 ‘‘PART PP—COMMUNITY REINVESTMENT GRANT 

14 PROGRAM 

15 ‘‘SEC. 3061. AUTHORIZATION. 

16 ‘‘The Director of the Cannabis Justice Office shall 

17 establish and carry out a grant program, known as the 

18 ‘Community Reinvestment Grant Program’, to provide eli19 gible entities with funds to administer services for individ20 uals adversely impacted by the War on Drugs, including— 

21 ‘‘(1) job training; 

22 ‘‘(2) reentry services; 

23 ‘‘(3) legal aid for civil and criminal cases, in24 cluding expungement of cannabis convictions; 

25 ‘‘(4) literacy programs; 


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1 ‘‘(5) youth recreation or mentoring programs; 

2 and 

3 ‘‘(6) health education programs. 

4 ‘‘SEC. 3062. DEFINITIONS. 

5 ‘‘In this part: 

6 ‘‘(1) The term ‘cannabis conviction’ means a 

7 conviction, or adjudication of juvenile delinquency, 

8 for a cannabis offense (as such term is defined in 

9 section 3 of the Cannabis Administration and Op10 portunity Act). 

11 ‘‘(2) The term ‘eligible entity’ means a non12 profit organization, as described in section 501(c)(3) 

13 of the Internal Revenue Code and exempt from tax14 ation under section 501(a) of such Code, an Indian 

15 Tribe, a Tribal organization (as defined in section 4 

16 of the Indian Self-Determination and Education As17 sistance Act (25 U.S.C. 5304)), or a Native Hawai18 ian-serving entity that is representative of a commu19 nity or a significant segment of a community with 

20 experience in providing relevant services to individ21 uals adversely impacted by the War on Drugs in 

22 that community. 

23 ‘‘(3) The term ‘individual adversely impacted by 

24 the War on Drugs’ has the meaning given that term 


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1 in section 301(b)(1) of the Cannabis Administration 

2 and Opportunity Act. 

3 ‘‘(4) The term ‘Native Hawaiian-serving entity’ 

4 means— 

5 ‘‘(A) a Native Hawaiian organization (as 

6 defined in section 6207 of the Elementary and 

7 Secondary Education Act of 1965 (20 U.S.C. 

8 7517)); 

9 ‘‘(B) the Department of Hawaiian Home 

10 Lands; and 

11 ‘‘(C) the Office of Hawaiian Affairs.’’. 

12 (b) CANNABIS OPPORTUNITY PROGRAM; EQUITABLE

13 LICENSING GRANT PROGRAM.— 

14 (1) DEFINITIONS.—In this subsection: 

15 (A) ADMINISTRATION; ADMINISTRATOR.— 

16 The terms ‘‘Administration’’ and ‘‘Adminis17 trator’’ mean the Small Business Administra18 tion and the Administrator thereof, respectively. 

19 (B) ELIGIBLE INDIAN TRIBE.—The term 

20 ‘‘eligible Indian Tribe’’ means an Indian Tribe 

21 that has taken steps— 

22 (i) to create an automatic process, at 

23 no cost to an individual, to expunge, de24 stroy, or seal criminal records for cannabis 

25 offenses; and 


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1 (ii) to eliminate violations or other 

2 penalties for individuals under parole, pro3 bation, pre-trial, or other Tribal criminal 

4 supervision for a cannabis offense. 

5 (C) ELIGIBLE STATE OR LOCALITY.—The 

6 term ‘‘eligible State or locality’’ means a State 

7 or locality that has taken steps— 

8 (i) to create an automatic process, at 

9 no cost to an individual, to expunge, de10 stroy, or seal criminal records for cannabis 

11 offenses; and 

12 (ii) to eliminate violations or other 

13 penalties for individuals under parole, pro14 bation, pre-trial, or other State or local 

15 criminal supervision for a cannabis offense. 

16 (D) FEDERAL POVERTY LEVEL.—The term 

17 ‘‘Federal Poverty Level’’ has the meaning given 

18 the term ‘‘poverty line’’ in section 2110(c) of 

19 the Social Security Act (42 U.S.C. 1397jj(c)). 

20 (E) INDIVIDUAL ADVERSELY IMPACTED BY

21 THE WAR ON DRUGS.—The term ‘‘individual 

22 adversely impacted by the War on Drugs’’ 

23 means an individual— 

24 (i) who has had an income below 250 

25 percent of the Federal Poverty Level for 


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1 not fewer than 5 of the past 10 years, as 

2 of the date on which the individual seeks 

3 to participate in a program established 

4 under this section or an amendment made 

5 by this section; and 

6 (ii)(I) who has been arrested for, or 

7 convicted of, the sale, possession, use, 

8 manufacture, or cultivation of cannabis 

9 (except for a conviction involving distribu10 tion to a minor); or 

11 (II) the parent, sibling, spouse, or 

12 child of whom has been arrested for, or 

13 convicted of, an offense described in sub14 clause (I). 

15 (F) SMALL BUSINESS CONCERN OWNED

16 AND CONTROLLED BY SOCIALLY AND ECONOMI17 CALLY DISADVANTAGED INDIVIDUALS.—The 

18 term ‘‘small business concern owned and con19 trolled by socially and economically disadvan20 taged individuals’’ has the meaning given the 

21 term in section 8(d)(3)(C) of the Small Busi22 ness Act (15 U.S.C. 637(d)(3)(C)). 

23 (G) STATE.—The term ‘‘State’’ means— 

24 (i) each of the several States; 

25 (ii) the District of Columbia; 


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1 (iii) the Commonwealth of Puerto 

2 Rico; and 

3 (iv) any territory or possession of the 

4 United States. 

5 (2) CANNABIS RESTORATIVE OPPORTUNITY

6 PROGRAM.— 

7 (A) IN GENERAL.—The Administrator 

8 shall establish and carry out a program, to be 

9 known as the ‘‘Cannabis Restorative Oppor10 tunity Program’’, to provide loans and technical 

11 assistance under section 7(m) of the Small 

12 Business Act (15 U.S.C. 636(m)) to assist 

13 small business concerns owned and controlled 

14 by socially and economically disadvantaged indi15 viduals that operate— 

16 (i) in eligible States or localities; or 

17 (ii) in the jurisdiction of eligible In18 dian Tribes. 

19 (B) TRIBAL SET ASIDE.—Of the amounts 

20 made available to carry out subparagraph (A), 

21 5 percent shall be used to provide loans and 

22 technical assistance under section 7(m) of the 

23 Small Business Act (15 U.S.C. 636(m)) to as24 sist small business concerns owned and con25 trolled by socially and economically disadvanVerDate Sep 11 2014 04:54 Jul 26, 2022 Jkt 029200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\S4591.IS S4591

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1 taged individuals that operate in the jurisdic2 tion of an eligible Indian Tribe. 

3 (3) EQUITABLE LICENSING GRANT PROGRAM.— 

4 The Administrator shall establish and carry out a 

5 grant program, to be known as the ‘‘Equitable Li6 censing Grant Program’’, to provide any eligible 

7 State or locality or eligible Indian Tribe funds to de8 velop and implement equitable cannabis licensing 

9 programs that minimize barriers to cannabis licens10 ing and employment for individuals adversely im11 pacted by the War on Drugs, provided that each 

12 grantee includes in the cannabis licensing program 

13 of the grantee not less than 4 of the following ele14 ments: 

15 (A) A waiver of cannabis license applica16 tion fees for an individual who— 

17 (i) has had an income below 250 per18 cent of the Federal Poverty Level for not 

19 fewer than 5 of the 10 years preceding the 

20 date on which the individual submits an 

21 application; and 

22 (ii) is a first-time applicant. 

23 (B) A prohibition on the denial of a can24 nabis license based on a conviction for a can25 nabis offense that took place before the eligible 


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1 State or locality (or, in the case of a locality, 

2 the State in which the locality is located) or eli3 gible Indian Tribe legalized the production, dis4 tribution, or possession of cannabis or the date 

5 of enactment of this Act, as applicable. 

6 (C) A prohibition on restrictions for licens7 ing relating to criminal convictions except with 

8 respect to a criminal conviction related to own9 ing and operating a business. 

10 (D) A prohibition on cannabis license hold11 ers engaging in suspicionless cannabis drug 

12 testing of their prospective or current employ13 ees, except with respect to drug testing for safe14 ty-sensitive positions under part 40 of title 49, 

15 Code of Federal Regulations, or any successor 

16 regulations. 

17 (E) The establishment of a cannabis li18 censing board that— 

19 (i) is reflective of the racial, ethnic, 

20 economic, and gender composition of the 

21 eligible State or locality or eligible Indian 

22 Tribe; 

23 (ii) includes at least 1 representative 

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1 cality or that has Tribal jurisdiction, as 

2 applicable; and 

3 (iii) shall serve as an oversight body 

4 of the equitable licensing program. 

5 (4) STUDY ON PROGRAMS.— 

6 (A) GAO STUDY.—Not later than 1 year 

7 after the date of enactment of this Act, and an8 nually thereafter, the Comptroller General of 

9 the United States, in consultation with the Ad10 ministrator, shall conduct a study on the indi11 viduals and entities receiving assistance under 

12 the Cannabis Restorative Opportunity and Eq13 uitable Licensing Programs established under 

14 paragraphs (2) and (3), respectively, which 

15 shall include— 

16 (i) the types of assistance by State; 

17 and 

18 (ii) a description of— 

19 (I) the efforts by the Administra20 tion to increase access to capital for 

21 cannabis-related small business con22 cerns owned and controlled by socially 

23 and economically disadvantaged indi24 viduals and small business concerns 

25 owned and controlled by individuals 


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1 adversely impacted by the War on 

2 Drugs; and 

3 (II) the racial, ethnic, economic 

4 and gender composition of the eligible 

5 State or locality. 

6 (B) REPORT.—The Comptroller General of 

7 the United States shall submit a report on the 

8 results of each study conducted under subpara9 graph (A) to— 

10 (i) the Committee on Small Business 

11 and Entrepreneurship of the Senate; 

12 (ii) the Committee on Small Business 

13 of the House of Representatives; 

14 (iii) the Committee on the Judiciary 

15 of the Senate; and 

16 (iv) the Committee on the Judiciary of 

17 the House of Representatives. 

18 (c) APPROPRIATIONS.— 

19 (1) COMMUNITY REINVESTMENT GRANT PRO20 GRAM.—In addition to amounts otherwise available, 

21 there is appropriated, out of any funds in the Treas22 ury not otherwise appropriated, $1,650,000,000 for 

23 fiscal year 2023, to remain available until September 

24 30, 2027, to carry out the program under part PP 

25 of title I of the Omnibus Crime Control and Safe 


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1 Streets Act of 1968 (34 U.S.C. 10101 et seq.), as 

2 added by subsection (a)(2). 

3 (2) CANNABIS RESTORATIVE OPPORTUNITY

4 PROGRAM.—In addition to amounts otherwise avail5 able, there is appropriated, out of any funds in the 

6 Treasury not otherwise appropriated, $17,000,000 

7 for fiscal year 2023, to remain available until Sep8 tember 30, 2027, to carry out the program under 

9 subsection (b)(2). 

10 (3) EQUITABLE LICENSING GRANT PROGRAM.— 

11 In addition to amounts otherwise available, there is 

12 appropriated, out of any funds in the Treasury not 

13 otherwise appropriated, $550,000,000 for fiscal year 

14 2023, to remain available until September 30, 2027, 

15 to carry out the program under subsection (b)(3). 

16 SEC. 302. COMPREHENSIVE OPIOID, STIMULANT, AND SUB17 STANCE USE DISORDER PROGRAM. 

18 (a) IN GENERAL.—Part LL of title I of the Omnibus 

19 Crime Control and Safe Streets Act of 1968 (34 U.S.C. 

20 10701 et seq.) is amended— 

21 (1) in the part heading, by striking ‘‘OPIOID

22 ABUSE GRANT’’ and inserting ‘‘OPIOID, STIMU23 LANT, AND SUBSTANCE USE DISORDER’’; 

24 (2) in section 3021(a) (34 U.S.C. 10701(a))— 


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1 (A) in paragraph (2), by striking ‘‘opioid 

2 abuse’’ and inserting ‘‘substance use disorder’’; 

3 (B) in paragraph (7), by striking ‘‘opioid 

4 abuse’’ and inserting ‘‘substance use disorder’’; 

5 and 

6 (C) in paragraph (10), by striking ‘‘opioid’’ 

7 and inserting ‘‘substance misuse and’’; and 

8 (3) in section 3022(4) (34 U.S.C. 10702(4)), by 

9 striking ‘‘opioid abuse’’ and inserting ‘‘substance 

10 misuse and abuse’’. 

11 (b) APPROPRIATION.—In addition to amounts other12 wise available, there is appropriated, out of any funds in 

13 the Treasury not otherwise appropriated, $200,000,000 

14 for each of fiscal years 2023 through 2027 to carry out 

15 the program under part LL of title I of the Omnibus 

16 Crime Control and Safe Streets Act of 1968, as amended 

17 by subsection (a) of this section. 

18 SEC. 303. AVAILABILITY OF SMALL BUSINESS ADMINISTRA19 TION PROGRAMS AND SERVICES TO CAN20 NABIS-RELATED LEGITIMATE BUSINESSES 

21 AND SERVICE PROVIDERS. 

22 (a) DEFINITIONS RELATING TO CANNABIS-RELATED

23 LEGITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

24 Section 3 of the Small Business Act (15 U.S.C. 632) is 

25 amended by adding at the end the following: 


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1 ‘‘(gg) CANNABIS-RELATED LEGITIMATE BUSINESSES

2 AND SERVICE PROVIDERS.—In this Act: 

3 ‘‘(1) CANNABIS; CANNABIS PRODUCT.—The 

4 terms ‘cannabis’ and ‘cannabis product’ have the 

5 meanings given those terms in section 201 of the 

6 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

7 321). 

8 ‘‘(2) CANNABIS-RELATED LEGITIMATE BUSI9 NESS.—The term ‘cannabis-related legitimate busi10 ness’ means a manufacturer, producer, or any per11 son or company that is a small business concern and 

12 that— 

13 ‘‘(A) engages in any activity described in 

14 subparagraph (B) pursuant to a law established 

15 by an Indian tribe (as defined in section 

16 8(a)(13)), a State, or a political subdivision of 

17 a State, as determined by that Indian tribe (as 

18 so defined), State, or political subdivision; and 

19 ‘‘(B) participates in any business or orga20 nized activity that involves handling cannabis or 

21 cannabis products, including cultivating, pro22 ducing, manufacturing, selling, transporting, 

23 displaying, dispensing, distributing, or pur24 chasing cannabis or cannabis products. 


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1 ‘‘(3) CANNABIS-RELATED SERVICE PROVIDER.— 

2 The term ‘cannabis-related service provider’— 

3 ‘‘(A) means a business, organization, or 

4 other person that— 

5 ‘‘(i) sells goods or services to a can6 nabis-related legitimate business; or 

7 ‘‘(ii) provides any business services, 

8 including the sale or lease of real or any 

9 other property, legal or other licensed serv10 ices, or any other ancillary service, relating 

11 to cannabis; and 

12 ‘‘(B) does not include a business, organiza13 tion, or other person that participates in any 

14 business or organized activity that involves han15 dling cannabis or cannabis products, including 

16 cultivating, producing, manufacturing, selling, 

17 transporting, displaying, dispensing, distrib18 uting, or purchasing cannabis or cannabis prod19 ucts.’’. 

20 (b) SMALL BUSINESS DEVELOPMENT CENTERS.— 

21 Section 21(c) of the Small Business Act (15 U.S.C. 

22 648(c)) is amended by adding at the end the following: 

23 ‘‘(9) SERVICES FOR CANNABIS-RELATED LEGITI24 MATE BUSINESSES AND SERVICE PROVIDERS.—A small 

25 business development center may not decline to provide 


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1 services to an otherwise eligible small business concern 

2 under this section solely because the concern is a cannabis3 related legitimate business or cannabis-related service pro4 vider.’’. 

5 (c) WOMEN’S BUSINESS CENTERS.—Section 29 of 

6 the Small Business Act (15 U.S.C. 656) is amended by 

7 adding at the end the following: 

8 ‘‘(p) SERVICES FOR CANNABIS-RELATED LEGITI9 MATE BUSINESSES AND SERVICE PROVIDERS.—A wom10 en’s business center may not decline to provide services 

11 to an otherwise eligible small business concern under this 

12 section solely because the concern is a cannabis-related le13 gitimate business or cannabis-related service provider.’’. 

14 (d) SCORE.—Section 8(b)(1)(B) of the Small Busi15 ness Act (15 U.S.C. 637(b)(1)(B)) is amended by adding 

16 at the end the following: ‘‘The head of the SCORE pro17 gram established under this subparagraph may not decline 

18 to provide services to an otherwise eligible small business 

19 concern solely because the concern is a cannabis-related 

20 legitimate business or cannabis-related service provider.’’. 

21 (e) VETERAN BUSINESS OUTREACH CENTERS.—Sec22 tion 32 of the Small Business Act (15 U.S.C. 657b) is 

23 amended by adding at the end the following: 

24 ‘‘(h) SERVICES FOR CANNABIS-RELATED LEGITI25 MATE BUSINESSES AND SERVICE PROVIDERS.—A VetVerDate Sep 11 2014 04:54 Jul 26, 2022 Jkt 029200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6201 E:\BILLS\S4591.IS S4591

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1 eran Business Outreach Center may not decline to provide 

2 services to an otherwise eligible small business concern 

3 under this section solely because the concern is a cannabis4 related legitimate business or cannabis-related service pro5 vider.’’. 

6 (f) COMMUNITY NAVIGATORS PILOT PROGRAM.— 

7 Section 5004 of the American Rescue Plan Act (Public 

8 Law 117–2; 135 Stat. 90) is amended by adding at the 

9 end the following: 

10 ‘‘(e) ASSISTANCE TO CANNABIS-RELATED LEGITI11 MATE BUSINESSES AND SERVICE PROVIDERS.—The Ad12 ministrator may not decline to make a grant to or enter 

13 into a contract or cooperative agreement with an entity 

14 under this section solely because the entity is a cannabis15 related business or cannabis-related service provider (as 

16 defined in section 3 of the Small Business Act (15 U.S.C. 

17 632)).’’. 

18 (g) 7(a) LOANS.—Section 7(a) of the Small Business 

19 Act (15 U.S.C. 636(a)) is amended by adding at the end 

20 the following: 

21 ‘‘(38) LOANS TO CANNABIS-RELATED LEGITI22 MATE BUSINESSES AND SERVICE PROVIDERS.—The 

23 Administrator may not decline to provide a guar24 antee for a loan under this subsection, and a lender 

25 may not decline to make a loan under this subVerDate Sep 11 2014 04:54 Jul 26, 2022 Jkt 029200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 E:\BILLS\S4591.IS S4591

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1 section, to an otherwise eligible small business con2 cern solely because the concern is a cannabis-related 

3 legitimate business or cannabis-related service pro4 vider.’’. 

5 (h) DISASTER LOANS.—Section 7(b) of the Small 

6 Business Act (15 U.S.C. 636(b)) is amended by inserting 

7 after paragraph (15) the following: 

8 ‘‘(16) ASSISTANCE TO CANNABIS-RELATED LE9 GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

10 The Administrator may not decline to provide assist11 ance under this subsection to an otherwise eligible 

12 small business concern solely because the concern is 

13 a cannabis-related legitimate business or cannabis14 related service provider.’’. 

15 (i) MICROLOANS.—Section 7(m) of the Small Busi16 ness Act (15 U.S.C. 636(m)) is amended by adding at the 

17 end the following: 

18 ‘‘(14) ASSISTANCE TO CANNABIS-RELATED LE19 GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

20 The Administrator may not decline to make a loan 

21 or a grant under this subsection, and an eligible 

22 intermediary may not decline to provide assistance 

23 under this subsection to an otherwise eligible bor24 rower, eligible intermediary, or eligible nonprofit en25 tity (as applicable) solely because such borrower, 


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1 intermediary, or nonprofit entity is a cannabis-re2 lated legitimate business or cannabis-related service 

3 provider.’’. 

4 (j) SMALL BUSINESS INVESTMENT COMPANY DE5 BENTURES TO FINANCE CANNABIS-RELATED LEGITI6 MATE BUSINESSES AND SERVICE PROVIDERS.—Part A of 

7 title III of the Small Business Investment Act of 1958 

8 (15 U.S.C. 681 et seq.) is amended by adding at the end 

9 the following: 

10 ‘‘SEC. 321. DEBENTURES TO FINANCE CANNABIS-RELATED 

11 LEGITIMATE BUSINESSES AND SERVICE PRO12 VIDERS. 

13 ‘‘(a) GUARANTEES.—The Administrator may not de14 cline to purchase or guarantee a debenture made under 

15 this title to an otherwise eligible small business investment 

16 company solely because such small business investment 

17 company provides financing to an entity that is a can18 nabis-related legitimate business or cannabis-related serv19 ice provider (as defined in section 3 of the Small Business 

20 Act (15 U.S.C. 632)). 

21 ‘‘(b) OTHER ASSISTANCE.—A small business invest22 ment company may not decline to provide assistance under 

23 this title to an otherwise eligible small business concern 

24 solely because the small business concern is a cannabis25 related legitimate business or cannabis-related service proVerDate Sep 11 2014 04:54 Jul 26, 2022 Jkt 029200 PO 00000 Frm 00101 Fmt 6652 Sfmt 6201 E:\BILLS\S4591.IS S4591

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1 vider (as defined in section 3 of the Small Business Act 

2 (15 U.S.C. 632)).’’. 

3 (k) STATE OR LOCAL DEVELOPMENT COMPANY

4 LOANS.—Title V of the Small Business Investment Act 

5 of 1958 (15 U.S.C. 695 et seq.) is amended by adding 

6 at the end the following: 

7 ‘‘SEC. 511. LOANS TO FINANCE CANNABIS-RELATED LEGITI8 MATE BUSINESSES AND SERVICE PROVIDERS. 

9 ‘‘(a) LOANS AND LOAN GUARANTEES.—The Admin10 istrator may not decline to make or provide a guarantee 

11 for a loan under this title to an otherwise eligible qualified 

12 State, Tribal, or local development company solely because 

13 such qualified State, Tribal, or local development company 

14 provides financing to an entity that is a cannabis-related 

15 legitimate business or cannabis-related service provider (as 

16 defined in section 3 of the Small Business Act (15 U.S.C. 

17 632)). 

18 ‘‘(b) OTHER ASSISTANCE.—A qualified State or local 

19 development company may not decline to provide assist20 ance under this title to an otherwise eligible small business 

21 concern solely because such small business concern is a 

22 cannabis-related legitimate business or cannabis-related 

23 service provider (as defined in section 3 of the Small Busi24 ness Act (15 U.S.C. 632)).’’. 


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1 SEC. 304. DEMOGRAPHIC DATA OF CANNABIS BUSINESS 

2 OWNERS AND EMPLOYEES. 

3 (a) IN GENERAL.—The Bureau of Labor Statistics 

4 shall regularly compile, maintain, and make public data 

5 on the demographics of— 

6 (1) individuals who are business owners in the 

7 cannabis industry; and 

8 (2) individuals who are employed in the can9 nabis industry. 

10 (b) DEMOGRAPHIC DATA.—The data collected under 

11 subsection (a) shall include data regarding— 

12 (1) age; 

13 (2) certifications and licenses; 

14 (3) disability status; 

15 (4) educational attainment; 

16 (5) family and marital status; 

17 (6) nativity; 

18 (7) race and Hispanic ethnicity; 

19 (8) school enrollment; 

20 (9) veteran status; and 

21 (10) sex. 

22 (c) CONFIDENTIALITY.—Notwithstanding any other 

23 provision in this section, the name, address, and other 

24 identifying information of an individual described in sub25 section (a) shall be kept confidential by the Bureau of 

26 Labor Statistics and not be made available to the public. 


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1 (d) DEFINITIONS.—In this section: 

2 (1) CANNABIS.—The term ‘‘cannabis’’ has the 

3 meaning given such term in section 3. 

4 (2) CANNABIS INDUSTRY.—The term ‘‘cannabis 

5 industry’’ means the industry, in any State, jurisdic6 tion of an Indian Tribe, or locality in the United 

7 States, in which an individual or entity— 

8 (A) conducts businesses pursuant to a per9 mit issued under section 302 of the Federal Al10 cohol Administration Act, as added by section 

11 511; or 

12 (B) is otherwise licensed or permitted 

13 under the law in such State, jurisdiction of such 

14 Indian Tribe, or law in such locality to engage 

15 in a commercial cannabis-related activity. 

16 (3) OWNER.—The term ‘‘owner’’, with respect 

17 to a business, means an individual or entity that is 

18 defined as an owner under the State, Tribal, or local 

19 law where the individual or entity is licensed or per20 mitted to operate such business. 

21 (4) STATE.—The term ‘‘State’’ means— 

22 (A) each of the several States; 

23 (B) the District of Columbia; 

24 (C) the Commonwealth of Puerto Rico; 

25 and 


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1 (D) any territory or possession of the 

2 United States. 

3 SEC. 305. PILOT PROGRAM. 

4 Section 7 of the Small Business Act (15 U.S.C. 636) 

5 is amended by adding at the end the following: 

6 ‘‘(o) PILOT PROGRAM.— 

7 ‘‘(1) DEFINITIONS.—In this subsection: 

8 ‘‘(A) ELIGIBLE INTERMEDIARY.—The term 

9 ‘eligible intermediary’ means— 

10 ‘‘(i) a private, nonprofit entity, includ11 ing a private, nonprofit community devel12 opment corporation, a consortium of pri13 vate, nonprofit organizations or nonprofit 

14 community development corporations, and 

15 an agency of or nonprofit entity estab16 lished by a Native American Tribal Gov17 ernment, that— 

18 ‘‘(I) seeks or has been awarded a 

19 loan from the Administrator to make 

20 loans to small business concerns 

21 under this subsection; and 

22 ‘‘(II) has not less than 1 year of 

23 experience making loans to startup or 

24 socially and economically disadvan25 taged small business concerns; 


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1 ‘‘(ii) a community development finan2 cial institution, as defined in section 103 of 

3 the Community Development Banking and 

4 Financial Institutions Act of 1994 (12 

5 U.S.C. 4702); and 

6 ‘‘(iii) a minority depository institution, 

7 as defined in section 308 of the Financial 

8 Institutions Reform, Recovery, and En9 forcement Act of 1989 (12 U.S.C. 1463 

10 note). 

11 ‘‘(B) INDIVIDUAL ADVERSELY IMPACTED

12 BY THE WAR ON DRUGS.—The term ‘individual 

13 adversely impacted by the War on Drugs’ has 

14 the meaning given the term in section 301(b) of 

15 the Cannabis Administration and Opportunity 

16 Act. 

17 ‘‘(C) PROGRAM.—The term ‘Program’ 

18 means the small business intermediary lending 

19 pilot program established under paragraph (2). 

20 ‘‘(D) SOCIALLY AND ECONOMICALLY DIS21 ADVANTAGED SMALL BUSINESS CONCERN.—The 

22 term ‘socially and economically disadvantaged 

23 small business concern’ has the meaning given 

24 the term in section 8(a)(4)(A). 


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1 ‘‘(2) ESTABLISHMENT.—There is established a 

2 10-year small business intermediary lending pilot 

3 program under which the Administrator may— 

4 ‘‘(A) make direct loans to eligible inter5 mediaries for the purpose of making loans to 

6 startup small business concerns, small business 

7 concerns owned and controlled by individuals 

8 adversely impacted by the War on Drugs, or so9 cially and economically disadvantaged small 

10 business concerns; and 

11 ‘‘(B) in conjunction with the direct loans 

12 described in subparagraph (A), make grants to 

13 eligible intermediaries for the purpose of pro14 viding intensive marketing, management, regu15 latory compliance, and technical assistance to 

16 the small business concerns described in sub17 paragraph (A) that receive a loan under this 

18 subsection. 

19 ‘‘(3) LOANS TO ELIGIBLE INTERMEDIARIES.— 

20 ‘‘(A) APPLICATION.—Each eligible inter21 mediary desiring a loan under this subsection 

22 shall submit an application to the Adminis23 trator that describes— 

24 ‘‘(i) the type of small business con25 cerns to be assisted; 


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1 ‘‘(ii) the size and range of loans to be 

2 made; 

3 ‘‘(iii) the interest rate and terms of 

4 loans to be made; 

5 ‘‘(iv) the geographic area to be served 

6 and the economic, poverty, and unemploy7 ment characteristics of the area; 

8 ‘‘(v) the status of small business con9 cerns in the area to be served and an anal10 ysis of the availability of credit; 

11 ‘‘(vi) the marketing, management, 

12 regulatory compliance, and other technical 

13 assistance to be provided in connection 

14 with a loan made under this subsection; 

15 and 

16 ‘‘(vii) the qualifications of the appli17 cant to carry out this subsection. 

18 ‘‘(B) LOAN LIMITS.—No loan may be 

19 made to an eligible intermediary under this sub20 section if the total amount outstanding and 

21 committed to the eligible intermediary by the 

22 Administrator would, as a result of such loan, 

23 exceed $10,000,000 during the participation of 

24 the eligible intermediary in the Program. 


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1 ‘‘(C) LOAN DURATION.—Loans made by 

2 the Administrator under this subsection shall be 

3 for a term of 20 years. 

4 ‘‘(D) APPLICABLE INTEREST RATE.— 

5 Loans made by the Administrator to an eligible 

6 intermediary under the Program shall bear an 

7 annual interest rate equal to the interest rate 

8 described in subsection (m)(3)(F)(ii). 

9 ‘‘(E) FEES; COLLATERAL.—The Adminis10 trator may not charge any fees or require col11 lateral with respect to any loan made to an eli12 gible intermediary under this subsection. 

13 ‘‘(F) DELAYED PAYMENTS.—The Adminis14 trator shall not require the repayment of prin15 cipal or interest on a loan made to an eligible 

16 intermediary under the Program during the 2- 

17 year period beginning on the date of the initial 

18 disbursement of funds under that loan. 

19 ‘‘(G) MAXIMUM PARTICIPANTS AND

20 AMOUNTS.—During each fiscal years, the Ad21 ministrator may make loans under the Pro22 gram— 

23 ‘‘(i) to not more than 30 eligible inter24 mediaries; and 


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1 ‘‘(ii) in a total amount of not more 

2 than $300,000,000. 

3 ‘‘(4) LOANS TO SMALL BUSINESS CONCERNS.— 

4 ‘‘(A) IN GENERAL.—The Administrator, 

5 through an eligible intermediary, shall make 

6 loans to the small business concerns described 

7 in paragraph (2) for eligible uses under sub8 section (a). 

9 ‘‘(B) MAXIMUM LOAN.—An eligible inter10 mediary may not make a loan under this sub11 section of more than $200,000 to any 1 small 

12 business concern. 

13 ‘‘(C) APPLICABLE INTEREST RATES.— 

14 ‘‘(i) IN GENERAL.—Subject to clause 

15 (ii), a loan made by an eligible inter16 mediary to a small business concern under 

17 this subsection— 

18 ‘‘(I) may have a fixed or a vari19 able interest rate; and 

20 ‘‘(II) shall bear an interest rate 

21 specified by the eligible intermediary 

22 in the application of the eligible inter23 mediary for a loan under this sub24 section. 


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1 ‘‘(ii) RESTRICTIONS.—The Adminis2 trator may limit the interest rate or pro3 vide forbearance or deferment on repay4 ment of a loan made by an eligible inter5 mediary to a small business concern under 

6 this section. 

7 ‘‘(D) REVIEW RESTRICTIONS.—The Ad8 ministrator may not review individual loans 

9 made by an eligible intermediary to a small 

10 business concern before approval of the loan by 

11 the eligible intermediary. 

12 ‘‘(5) FUNDING.—In addition to amounts other13 wise available, there is appropriated, out of any 

14 funds in the Treasury not otherwise appropriated, 

15 for fiscal year 2023, to remain available until Sep16 tember 30, 2027— 

17 ‘‘(A) $90,000,000 to carry out paragraph 

18 (2)(A); and 

19 ‘‘(B) $41,000,000 to carry out paragraph 

20 (2)(B). 

21 ‘‘(6) TERMINATION.—The authority of the Ad22 ministrator to make loans under the Program shall 

23 terminate on the date that is 10 years after the date 

24 of enactment of this subsection. 


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1 ‘‘(7) SENSE OF THE SENATE.—It is the sense 

2 of the Senate that the Administrator should issue 

3 regulations to ensure that the processing and dis4 bursement of loans under this subsection prioritizes 

5 individuals adversely impacted by the War on 

6 Drugs.’’. 

7 SEC. 306. ELIMINATING DISPARITIES AMONG CANNABIS-RE8 LATED LEGITIMATE BUSINESSES AND SERV9 ICE PROVIDERS. 

10 (a) DEFINITIONS.—In this section— 

11 (1) the terms ‘‘cannabis-related legitimate busi12 ness’’ and ‘‘cannabis-related service provider’’ have 

13 the meanings given those terms in section 3 of the 

14 Small Business Act (15 U.S.C. 632), as added by 

15 section 303; and 

16 (2) the term ‘‘individual adversely impacted by 

17 the War on Drugs’’ has the meaning given the term 

18 in section 301(b). 

19 (b) REVIEW.—The Administrator of the Small Busi20 ness Administration— 

21 (1) shall review regulations, policies, and guid22 ance of the Administration to eliminate disparities 

23 for cannabis-related legitimate businesses and can24 nabis-related service providers, including by reducing 

25 regulatory burdens and increasing loan eligibility for 


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1 minority businesses and individuals adversely im2 pacted by the War on Drugs; and 

3 (2) in carrying out paragraph (1), may consider 

4 effective, State-level systems designed to eliminate 

5 disparities for cannabis-related legitimate businesses 

6 and cannabis-related service providers. 

7 Subtitle B—Restorative Justice 

8 SEC. 311. RESENTENCING AND EXPUNGEMENT. 

9 (a) EXPUNGEMENT OF FEDERAL CANNABIS OF10 FENSE CONVICTIONS FOR INDIVIDUALS NOT UNDER A

11 CRIMINAL JUSTICE SENTENCE.— 

12 (1) IN GENERAL.—Not later than 1 year after 

13 the date of the enactment of this Act, each Federal 

14 district shall conduct a comprehensive review and 

15 issue an order expunging each conviction or adju16 dication of juvenile delinquency for a Federal can17 nabis offense entered by each Federal court in the 

18 district before the date of enactment of this Act and 

19 on or after May 1, 1971. Each Federal court shall 

20 also issue an order expunging any arrests associated 

21 with each expunged conviction or adjudication of ju22 venile delinquency. 

23 (2) NOTIFICATION.—To the extent practicable, 

24 each Federal district shall notify each individual 

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1 quency has been expunged pursuant to this sub2 section that their arrest, conviction, or adjudication 

3 of juvenile delinquency has been expunged, and the 

4 effect of such expungement. 

5 (3) RIGHT TO PETITION COURT FOR

6 EXPUNGEMENT.—At any point after the date of en7 actment of this Act, any individual with a prior con8 viction or adjudication of juvenile delinquency for a 

9 Federal cannabis offense, who is not under a crimi10 nal justice sentence, may file a motion for 

11 expungement. If the expungement of such a convic12 tion or adjudication of juvenile delinquency is re13 quired pursuant to this Act, the court shall expunge 

14 the conviction or adjudication, and any associated 

15 arrests. If the individual is indigent, counsel shall be 

16 appointed to represent the individual in any pro17 ceedings under this subsection. 

18 (4) SEALED RECORD.—The court shall seal all 

19 records related to a conviction or adjudication of ju20 venile delinquency that has been expunged under 

21 this subsection. Such records may only be made 

22 available by further order of the court. 

23 (5) CERTIFICATION.—The court shall provide a 

24 certificate to the individual receiving expungement 

25 for a prior Federal cannabis offense. Any records of 


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1 this certification shall be sealed under paragraph 

2 (4). 

3 (b) EFFECT OF EXPUNGEMENT.—An individual who 

4 has had an arrest, a conviction, or juvenile delinquency 

5 adjudication expunged under this section— 

6 (1) may treat the arrest, conviction, or adju7 dication as if it never occurred; 

8 (2) shall be immune from any civil or criminal 

9 penalties related to perjury, false swearing, or false 

10 statements, for a failure to disclose such arrest, con11 viction, or adjudication; and 

12 (3) shall not be subject to any loss of Federal 

13 benefits related to the expunged cannabis offense. 

14 (c) EXCEPTION.—An individual who at sentencing re15 ceived an aggravating role adjustment pursuant to section 

16 3B1.1(a) of the United States Sentencing Guidelines in 

17 relation to a Federal cannabis offense conviction shall not 

18 be eligible for expungement of that Federal cannabis of19 fense conviction under this section, unless a Federal court 

20 conducting the sentencing review finds mitigating factors 

21 to warrant expungement, including the age of the indi22 vidual at the time of the arrest, conviction, or adjudica23 tion, the role of the individual in the offense, or whether 

24 it was the first Federal cannabis offense committed by the 

25 individual. 


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1 (d) DEFINITIONS.—In this section: 

2 (1) The term ‘‘Federal cannabis offense’’ means 

3 an offense that is no longer punishable pursuant to 

4 this Act or the amendments made under this Act. 

5 (2) The term ‘‘expunge’’ means, with respect to 

6 an arrest, a conviction, or a juvenile delinquency ad7 judication, the removal of the record of such arrest, 

8 conviction, or adjudication from each official index 

9 or public record. 

10 (3) The term ‘‘under a criminal justice sen11 tence’’ means, with respect to an individual, that the 

12 individual is serving a term of probation, parole, su13 pervised release, imprisonment, official detention, 

14 pre-release custody, or work release, pursuant to a 

15 sentence or disposition of juvenile delinquency im16 posed on or after May 1, 1971. 

17 (e) STUDY.—The Comptroller General of the United 

18 States, in consultation with the Secretary of Health and 

19 Human Services, shall conduct a demographic study of in20 dividuals convicted of a Federal cannabis offense. Such 

21 study shall include information about the age, race, eth22 nicity, sex, and gender identity of those individuals, the 

23 type of community such users dwell in, and such other 

24 demographic information as the Comptroller General de25 termines should be included. 


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1 (f) REPORT.—Not later than 2 years after the date 

2 of the enactment of this Act, the Comptroller General of 

3 the United States shall report to Congress the results of 

4 the study conducted under subsection (f). 

5 SEC. 312. NO DISCRIMINATION IN THE PROVISION OF A 

6 FEDERAL PUBLIC BENEFIT ON THE BASIS OF 

7 CANNABIS. 

8 (a) IN GENERAL.—No person may be denied any 

9 Federal public benefit (as such term is defined in section 

10 401(c) of the Personal Responsibility and Work Oppor11 tunity Reconciliation Act of 1996 (8 U.S.C. 1611(c))) on 

12 the basis of any use or possession of cannabis, or on the 

13 basis of a conviction or adjudication of juvenile delin14 quency for a cannabis offense, by that person. 

15 (b) SECURITY CLEARANCES.—A Federal agency may 

16 not grant, deny, or rescind a security clearance based sole17 ly on past or present cannabis use. 

18 SEC. 313. NO ADVERSE EFFECT FOR PURPOSES OF THE IM19 MIGRATION LAWS. 

20 (a) IN GENERAL.—For purposes of the immigration 

21 laws (as defined in section 101 of the Immigration and 

22 Nationality Act (8 U.S.C. 1101(a))), cannabis may not be 

23 considered a controlled substance, and an alien may not 

24 be denied any benefit or protection under the immigration 

25 laws based on any event, including conduct, a finding, an 


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1 admission, addiction or abuse, an arrest, a juvenile adju2 dication, or a conviction, relating to cannabis, regardless 

3 of whether the event occurred before, on, or after the ef4 fective date of this Act. 

5 (b) AMENDMENTS TO THE IMMIGRATION AND NA6 TIONALITY ACT.—The Immigration and Nationality Act 

7 (8 U.S.C. 1101 et seq.) is amended— 

8 (1) in section 101(f)(3) (8 U.S.C. 1101(f)(3)), 

9 by striking ‘‘(except as such paragraph relates to a 

10 single offense of simple possession of 30 grams or 

11 less of marihuana)’’; 

12 (2) in section 210(c)(2)(B)(ii)(III) (8 U.S.C. 

13 1160(c)(2)(B)(ii)(III)), by striking ‘‘, except for so 

14 much of such paragraph as relates to a single of15 fense of simple possession of 30 grams or less of 

16 marihuana’’; 

17 (3) in section 212(h) (8 U.S.C. 1182(h)), by 

18 striking ‘‘and subparagraph (A)(i)(II) of such sub19 section insofar as it relates to a single offense of 

20 simple possession of 30 grams or less of marijuana’’; 

21 (4) in section 237(a)(2)(B)(i) (8 U.S.C. 

22 (a)(2)(B)(i)), by striking ‘‘, other than a single of23 fense involving possession for one’s own use of 30 

24 grams or less of marijuana’’; 


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•S 4591 IS

1 (5) in section 240(c)(6) (8 U.S.C. 1229a(c)(6)), 

2 by amending subparagraphs (A) and (B) to read as 

3 follows: 

4 ‘‘(A) RIGHT TO FILE.— 

5 ‘‘(i) IN GENERAL.—Except as pro6 vided in clause (ii), a noncitizen may file 1 

7 motion to reconsider a decision that the 

8 alien is removable from the United States. 

9 ‘‘(ii) REMOVAL ORDERS IMPACTED BY

10 CANNABIS OFFENSES.—In addition to the 

11 motion authorized under clause (i), a re12 moval order shall be reconsidered upon a 

13 motion filed at any time by a noncitizen 

14 demonstrating that— 

15 ‘‘(I) such order was based, in 

16 whole or in part, on an offense relat17 ing to cannabis that rendered the non18 citizen deportable or inadmissible; or 

19 ‘‘(II) an offense relating to can20 nabis— 

21 ‘‘(aa) rendered the noncit22 izen ineligible for a benefit or re23 lief under this Act; or 


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•S 4591 IS

1 ‘‘(bb) formed all or part of 

2 the basis for the denial of a ben3 efit or relief under this Act. 

4 ‘‘(B) DEADLINE.—A motion to reconsider 

5 under subparagraph (A)(i) shall be filed not 

6 later than 30 days after the date of entry of the 

7 relevant final administrative order of removal.’’; 

8 (6) in section 244(c)(2)(A)(iii)(II) (8 U.S.C. 

9 1254a(c)(2)(A)(iii)(II)) by striking ‘‘, except for so 

10 much of such paragraph as relates to a single of11 fense of simple possession of 30 grams or less of 

12 marijuana’’; 

13 (7) in section 245(h)(2)(B) (8 U.S.C. 

14 1255(h)(2)(B)) by striking ‘‘(except for so much of 

15 such paragraph as related to a single offense of sim16 ple possession of 30 grams or less of marijuana)’’; 

17 and 

18 (8) in section 245A(d)(2)(B)(ii)(II) (8 U.S.C. 

19 1255a(d)(2)(B)(ii)(II)) by striking ‘‘, except for so 

20 much of such paragraph as relates to a single of21 fense of simple possession of 30 grams or less of 

22 marihuana’’. 


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•S 4591 IS

1 SEC. 314. PROVISION BY HEALTH CARE PROVIDERS OF THE 

2 DEPARTMENT OF VETERANS AFFAIRS OF 

3 RECOMMENDATIONS AND OPINIONS RE4 GARDING VETERAN PARTICIPATION IN CAN5 NABIS PROGRAMS. 

6 Not later than 180 days after the date of the enact7 ment of this Act, the Secretary of Veterans Affairs shall 

8 update all applicable regulations, guidance, memoranda, 

9 and policies of the Department of Veterans Affairs to au10 thorize physicians and other health care providers em11 ployed by the Department— 

12 (1) to provide recommendations and opinions to 

13 veterans regarding the participation of such veterans 

14 in cannabis programs authorized under State or 

15 Federal law; and 

16 (2) to complete forms reflecting such rec17 ommendations and opinions. 

18 SEC. 315. PROVISION BY HEALTH CARE PROVIDERS OF IN19 DIAN HEALTH PROGRAMS OF RECOMMENDA20 TIONS AND OPINIONS REGARDING PARTICI21 PATION IN CANNABIS PROGRAMS. 

22 Not later than 180 days after the date of enactment 

23 of this Act, the Director of the Indian Health Service shall 

24 update all applicable regulations, guidance, memoranda, 

25 and policies of the Indian Health Service to authorize 

26 health care providers (as defined in section 805(a) of the 


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•S 4591 IS

1 Indian Health Care Improvement Act (25 U.S.C. 

2 1675(a)))— 

3 (1) to provide recommendations and opinions to 

4 patients relating to the participation of those pa5 tients in State or Tribal cannabis programs author6 ized under Federal or State law; and 

7 (2) to complete forms reflecting those rec8 ommendations and opinions. 

9 TITLE IV—TAXATION AND ES10 TABLISHMENT OF TRUST 

11 FUND 

12 SEC. 401. CREATION OF OPPORTUNITY TRUST FUND AND 

13 IMPOSITION OF TAXES WITH RESPECT TO 

14 CANNABIS PRODUCTS. 

15 (a) CANNABIS REVENUE AND REGULATION ACT.— 

16 Subtitle E of the Internal Revenue Code of 1986 is 

17 amended by adding at the end the following new chapter: 

18 ‘‘CHAPTER 56—CANNABIS PRODUCTS 

‘‘SUBCHAPTER A. TAX ON CANNABIS PRODUCTS

‘‘SUBCHAPTER B. AUTHORIZATION AND BOND REQUIREMENTS

‘‘SUBCHAPTER C. OPERATIONS

‘‘SUBCHAPTER D. PENALTIES

19 ‘‘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. 


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1 ‘‘SEC. 5901. IMPOSITION OF TAX. 

2 ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 

3 on any cannabis product produced in or imported into the 

4 United States a tax equal to— 

5 ‘‘(1) for any such product removed during the 

6 first 5 calendar years ending after the date on which 

7 this chapter becomes effective, the applicable per8 centage of such product’s removal price, and 

9 ‘‘(2) for any product removed during any cal10 endar year after the calendar years described in 

11 paragraph (1), the applicable equivalent amount. 

12 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

13 subsection (a)(1), the applicable percentage shall be deter14 mined as follows: 

15 ‘‘(1) For any cannabis product sold during the 

16 first 2 calendar years in which this chapter becomes 

17 effective, 10 percent. 

18 ‘‘(2) For any cannabis product sold during the 

19 calendar year after the period described in para20 graph (1), 15 percent. 

21 ‘‘(3) For any cannabis product sold during the 

22 calendar year after the period described in para23 graph (2), 20 percent. 

24 ‘‘(4) For any cannabis product sold during the 

25 calendar year after the period described in para26 graph (3), 25 percent. 


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•S 4591 IS

1 ‘‘(c) APPLICABLE EQUIVALENT AMOUNT.— 

2 ‘‘(1) IN GENERAL.—For purposes of subsection 

3 (a)(2), the term ‘applicable equivalent amount’ 

4 means, with respect to any cannabis product re5 moved during any calendar year, an amount equal 

6 to— 

7 ‘‘(A) in the case of any cannabis product 

8 not described in subparagraph (B), the product 

9 of the applicable rate per ounce multiplied by 

10 the number of ounces of such product (and a 

11 proportionate tax at the like rate on all frac12 tional parts of an ounce of such product), and 

13 ‘‘(B) in the case of any THC product, the 

14 product of the applicable rate per gram multi15 plied by the number of grams of 

16 tetrahydrocannabinol in such product (and a 

17 proportionate tax at the like rate on all frac18 tional parts of a gram of tetrahydrocannabinol 

19 in such product). 

20 ‘‘(2) APPLICABLE RATES.— 

21 ‘‘(A) IN GENERAL.—For purposes of para22 graph (1)(A), the term ‘applicable rate per 

23 ounce’ means, with respect to any cannabis 

24 product removed during any calendar year, 25 

25 percent of the prevailing sales price of cannabis 


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•S 4591 IS

1 flowers sold in the United States during the 12- 

2 month period ending one calendar quarter be3 fore such calendar year, expressed on a per 

4 ounce basis, as determined by the Secretary. 

5 ‘‘(B) THC PRODUCTS.—For purposes of 

6 paragraph (1)(B), the term ‘applicable rate per 

7 gram’ means, with respect to any cannabis 

8 product removed during any calendar year, 25 

9 percent of the prevailing sales price of 

10 tetrahydrocannabinol sold in the United States 

11 during the 12-month period ending one cal12 endar quarter before such calendar year, ex13 pressed on a per gram basis, as determined by 

14 the Secretary. 

15 ‘‘(d) TIME OF ATTACHMENT ON CANNABIS PROD16 UCTS; LIEN FOR TAX.— 

17 ‘‘(1) TIME OF ATTACHMENT.—The tax under 

18 this section shall attach to any cannabis product as 

19 soon as such product is in existence as such, wheth20 er it be subsequently separated or transferred into 

21 any other substance, either in the process of original 

22 production or by any subsequent process. 

23 ‘‘(2) LIEN FOR TAX.— 

24 ‘‘(A) IN GENERAL.—The tax imposed by 

25 this section shall be a first lien on the cannabis 


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•S 4591 IS

1 product from the time the product is in exist2 ence as such until the tax is paid. 

3 ‘‘(B) EXCEPTIONS.—The lien imposed by 

4 this paragraph shall terminate in the case of 

5 products produced at a cannabis production fa6 cility when such products are— 

7 ‘‘(i) withdrawn from bonded premises 

8 on determination of tax, 

9 ‘‘(ii) withdrawn from bonded premises 

10 free of tax under provisions of section 

11 5904(a), or 

12 ‘‘(iii) exported, deposited in a foreign13 trade zone, or deposited in a customs 

14 bonded warehouse. 

15 ‘‘(e) CREDIT FOR QUALIFIED DOMESTIC MANUFAC16 TURERS.— 

17 ‘‘(1) IN GENERAL.—In the case of a qualified 

18 domestic manufacturer of cannabis products, there 

19 shall be allowed as a credit against any tax imposed 

20 by subsection (a) for the calendar year an amount 

21 equal to 50 percent of the applicable tax amount for 

22 such calendar year. 

23 ‘‘(2) APPLICABLE TAX AMOUNT.— 


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•S 4591 IS

1 ‘‘(A) IN GENERAL.—For purposes of this 

2 subsection, the applicable tax amount shall be 

3 an amount equal to the lesser of— 

4 ‘‘(i) the amount of any tax imposed by 

5 subsection (a) for the calendar year, or 

6 ‘‘(ii) the phase-in amount. 

7 ‘‘(B) PHASE-IN AMOUNT.—For purposes of 

8 subparagraph (A), the phase-in amount shall be 

9 an amount equal to— 

10 ‘‘(i) for the calendar year which in11 cludes the date on which this chapter first 

12 becomes effective, $2,000,000, 

13 ‘‘(ii) for the first calendar year subse14 quent to the calendar year described in 

15 clause (i), $2,000,000, 

16 ‘‘(iii) for the second calendar year 

17 subsequent to the calendar year described 

18 in clause (i), $3,000,000, 

19 ‘‘(iv) for the third calendar year sub20 sequent to the calendar year described in 

21 clause (i), $4,000,000, and 

22 ‘‘(v) for any calendar years subse23 quent to the calendar year described in 

24 clause (iv), $5,000,000. 


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1 ‘‘(3) CREDIT NOT ALLOWED FOR CANNABIS RE2 CEIVED IN BOND, IMPORTED, SMUGGLED, OR ILLE3 GALLY PRODUCED.— 

4 ‘‘(A) IN GENERAL.—The credit under this 

5 subsection shall not apply in the case of any 

6 cannabis which is— 

7 ‘‘(i) received in bond, 

8 ‘‘(ii) imported, 

9 ‘‘(iii) smuggled into the United 

10 States, or 

11 ‘‘(iv) produced other than as author12 ized by this chapter. 

13 ‘‘(B) SUBSTANTIAL PROCESSING EXCEP14 TION.—Subparagraph (A)(i) shall not apply 

15 with respect to any cannabis which is trans16 ferred in bond solely as unprocessed plant mat17 ter if such cannabis is processed by the tax18 payer to produce an extract which contains no 

19 plant matter. 

20 ‘‘(C) CONTRACT PACKAGING AND LABEL21 ING EXCEPTION.—In the case of cannabis 

22 transferred in bond from the person who pro23 duced such cannabis (hereinafter referred to as 

24 ‘transferor’) to another person for packaging or 

25 labeling of such cannabis, and returned to the 


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•S 4591 IS

1 transferor for removal, subparagraph (A)(i) 

2 shall not apply, but only if the transferor re3 tains title during the entire period between such 

4 production and removal. 

5 ‘‘(4) SINGLE TAXPAYER.—Pursuant to rules 

6 issued by the Secretary, 2 or more entities (whether 

7 or not under common control) that produce any can8 nabis product under a license, franchise, or other ar9 rangement shall be treated as a single taxpayer for 

10 purposes of the application of this subsection. 

11 ‘‘(5) TIME FOR DETERMINING AND ALLOWING

12 CREDIT.—The credit allowable by paragraph (1)— 

13 ‘‘(A) shall be determined at the same time 

14 the tax is determined under subsection (a) of 

15 this section, and 

16 ‘‘(B) shall be allowable at the time the tax 

17 described in such subsection is payable as if the 

18 credit allowable by this subsection constituted a 

19 reduction in the rate of such tax. 

20 ‘‘(6) CONTROLLED GROUPS.—Rules similar to 

21 rules of section 5051(a)(5) shall apply for purposes 

22 of this subsection. 

23 ‘‘SEC. 5902. DEFINITIONS. 

24 ‘‘(a) DEFINITIONS RELATED TO CANNABIS PROD25 UCTS.—For purposes of this subtitle— 


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•S 4591 IS

1 ‘‘(1) CANNABIS; CANNABIS PRODUCT.—The 

2 terms ‘cannabis’ and ‘cannabis product’ have the 

3 same meaning given such terms under subsection 

4 (ss) of section 201 of the Federal Food, Drug, and 

5 Cosmetic Act (21 U.S.C. 321). 

6 ‘‘(2) CANNABIS FLOWER.—The term ‘cannabis 

7 flower’ means any cannabis plant product consisting 

8 of the flower of the plant Cannabis sativa L., or any 

9 other part of such plant with significant concentra10 tions of tetrahydrocannabinol as designated by the 

11 Secretary. 

12 ‘‘(3) CANNABIS PLANT PRODUCT.—The term 

13 ‘cannabis plant product’ means any part of the plant 

14 Cannabis sativa L. which— 

15 ‘‘(A) is a cannabis product, and 

16 ‘‘(B) does not contain any cannabis that 

17 has been processed, extracted, or concentrated 

18 (other than harvesting, drying, curing, or trim19 ming). 

20 ‘‘(4) THC PRODUCT.—The term ‘THC product’ 

21 means any cannabis product other than a cannabis 

22 plant product. 

23 ‘‘(5) TETRAHYDROCANNABINOL.—The term 

24 ‘tetrahydrocannabinol’ means total 

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1 graph (1)(B) of section 297A of the Agricultural 

2 Marketing Act of 1946 (7 U.S.C. 1639o)). 

3 ‘‘(b) DEFINITIONS RELATED TO CANNABIS ENTER4 PRISES.—For purposes of this chapter— 

5 ‘‘(1) CANNABIS ENTERPRISE.—The term ‘can6 nabis enterprise’ means a producer, importer, or ex7 port warehouse proprietor. 

8 ‘‘(2) PRODUCER.— 

9 ‘‘(A) IN GENERAL.—The term ‘producer’ 

10 means any person who plants, cultivates, har11 vests, grows, manufactures, produces, com12 pounds, converts, processes, prepares, or pack13 ages any cannabis product. 

14 ‘‘(B) PERSONAL USE EXCEPTION.—Subject 

15 to such regulations as the Secretary shall pre16 scribe, the term ‘producer’ shall not include any 

17 individual otherwise described in subparagraph 

18 (A) if the only cannabis product described in 

19 such subparagraph with respect to such indi20 vidual is for personal or family use and not for 

21 sale, provided— 

22 ‘‘(i) such individual is solely involved 

23 in the planting, cultivation, and growing of 

24 such cannabis, 


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•S 4591 IS

1 ‘‘(ii) the planting, cultivation, and 

2 growing of such cannabis occurs only in 

3 such individual’s dwelling house, or in any 

4 shed, yard, or inclosure connected with 

5 such individual’s dwelling house, and 

6 ‘‘(iii) the quantity of cannabis prod7 ucts planted, cultivated, and grown by such 

8 individual does not exceed the personal use 

9 production limitations determined by the 

10 Secretary as are necessary to protect the 

11 public and protect the revenue. 

12 ‘‘(3) IMPORTER.—The term ‘importer’ means 

13 any person who— 

14 ‘‘(A) is in the United States and to whom 

15 non-tax-paid cannabis products, produced in a 

16 foreign country or a possession of the United 

17 States, are shipped or consigned, 

18 ‘‘(B) removes cannabis products for sale or 

19 consumption in the United States from a cus20 toms bonded warehouse, or 

21 ‘‘(C) smuggles or otherwise unlawfully 

22 brings any cannabis product into the United 

23 States. 

24 ‘‘(4) EXPORT WAREHOUSE PROPRIETOR.— 


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1 ‘‘(A) IN GENERAL.—The term ‘export 

2 warehouse proprietor’ means any person who 

3 operates an export warehouse. 

4 ‘‘(B) EXPORT WAREHOUSE.—The term 

5 ‘export warehouse’ means a bonded internal 

6 revenue warehouse for the storage of cannabis 

7 products, upon which the internal revenue tax 

8 has not been paid— 

9 ‘‘(i) for subsequent shipment to a for10 eign country or a possession of the United 

11 States, or 

12 ‘‘(ii) for consumption beyond the ju13 risdiction of the internal revenue laws of 

14 the United States. 

15 ‘‘(5) CANNABIS PRODUCTION FACILITY.—The 

16 term ‘cannabis production facility’ means an estab17 lishment which is qualified under subchapter B to 

18 perform any operation for which such qualification is 

19 required under such subchapter. 

20 ‘‘(c) OTHER DEFINITIONS.—For purposes of this 

21 chapter— 

22 ‘‘(1) PRODUCE.—The term ‘produce’ includes 

23 any activity described in subsection (b)(2)(A). 

24 ‘‘(2) REMOVAL; REMOVE.—The terms ‘removal’ 

25 or ‘remove’ means— 


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•S 4591 IS

1 ‘‘(A) the transfer of cannabis products 

2 from the premises of a producer (or the trans3 fer of such products from the bonded premises 

4 of a producer to a non-bonded premises of such 

5 producer), 

6 ‘‘(B) release of such products from cus7 toms custody, or 

8 ‘‘(C) smuggling or other unlawful importa9 tion of such products into the United States. 

10 ‘‘(3) REMOVAL PRICE.—The term ‘removal 

11 price’ means— 

12 ‘‘(A) except as otherwise provided in this 

13 paragraph, the price for which the cannabis 

14 product is sold in the sale which occurs in con15 nection with the removal of such product, 

16 ‘‘(B) in the case of any such sale which is 

17 described in section 5903(c), the price deter18 mined under such section, and 

19 ‘‘(C) if there is no sale which occurs in 

20 connection with such removal, the price which 

21 would be determined under section 5903(c) if 

22 such product were sold at a price which cannot 

23 be determined. 

24 ‘‘SEC. 5903. LIABILITY AND METHOD OF PAYMENT. 

25 ‘‘(a) LIABILITY FOR TAX.— 


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•S 4591 IS

1 ‘‘(1) ORIGINAL LIABILITY.—The producer or 

2 importer of any cannabis product shall be liable for 

3 the taxes imposed thereon by section 5901. 

4 ‘‘(2) TRANSFER OF LIABILITY.— 

5 ‘‘(A) IN GENERAL.—When cannabis prod6 ucts are transferred, without payment of tax, 

7 pursuant to subsection (b) or (c) of section 

8 5904— 

9 ‘‘(i) except as provided in clause (ii), 

10 the transferee shall become liable for the 

11 tax upon receipt by the transferee of such 

12 articles, and the transferor shall thereupon 

13 be relieved of their liability for such tax, 

14 and 

15 ‘‘(ii) in the case of cannabis products 

16 which are released in bond from customs 

17 custody for transfer to the bonded prem18 ises of a producer, the transferee shall be19 come liable for the tax on such articles 

20 upon release from customs custody, and 

21 the importer shall thereupon be relieved of 

22 their liability for such tax. 

23 ‘‘(B) RETURNED TO BOND.—All provisions 

24 of this chapter applicable to cannabis products 

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1 turned to bond upon withdrawal from the mar2 ket or returned to bond after previous removal 

3 for a tax-exempt purpose. 

4 ‘‘(b) METHOD OF PAYMENT OF TAX.— 

5 ‘‘(1) IN GENERAL.— 

6 ‘‘(A) TAXES PAID ON BASIS OF RETURN.— 

7 The taxes imposed by section 5901 shall be 

8 paid on the basis of return. The Secretary shall, 

9 by regulations, prescribe the period or the event 

10 to be covered by such return and the informa11 tion to be furnished on such return. 

12 ‘‘(B) APPLICATION TO TRANSFEREES.—In 

13 the case of any transfer to which subsection 

14 (a)(2)(A) applies, the tax under section 5901 on 

15 the transferee shall (if not otherwise relieved by 

16 reason of a subsequent transfer to which such 

17 subsection applies) be imposed with respect to 

18 the removal of the cannabis product from the 

19 bonded premises of the transferee. 

20 ‘‘(C) POSTPONEMENT.—Any postponement 

21 under this subsection of the payment of taxes 

22 determined at the time of removal shall be con23 ditioned upon the filing of such additional 

24 bonds, and upon compliance with such require25 ments, as the Secretary may prescribe for the 


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•S 4591 IS

1 protection of the revenue. The Secretary may, 

2 by regulations, require payment of tax on the 

3 basis of a return prior to removal of the can4 nabis products where a person defaults in the 

5 postponed payment of tax on the basis of a re6 turn under this subsection or regulations pre7 scribed thereunder. 

8 ‘‘(D) ADMINISTRATION AND PENALTIES.— 

9 All administrative and penalty provisions of this 

10 title, insofar as applicable, shall apply to any 

11 tax imposed by section 5901. 

12 ‘‘(2) TIME FOR PAYMENT OF TAXES.— 

13 ‘‘(A) IN GENERAL.—Except as otherwise 

14 provided in this paragraph, in the case of taxes 

15 on cannabis products removed during any semi16 monthly period under bond for deferred pay17 ment of tax, the last day for payment of such 

18 taxes shall be the 14th day after the last day 

19 of such semimonthly period. 

20 ‘‘(B) IMPORTED ARTICLES.—In the case of 

21 cannabis products which are imported into the 

22 United States, the following provisions shall 

23 apply: 

24 ‘‘(i) IN GENERAL.—The last day for 

25 payment of tax shall be the 14th day after 


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•S 4591 IS

1 the last day of the semimonthly period 

2 during which the article is entered into the 

3 customs territory of the United States. 

4 ‘‘(ii) SPECIAL RULE FOR ENTRY OF

5 WAREHOUSING.—Except as provided in 

6 clause (iv), in the case of an entry for 

7 warehousing, the last day for payment of 

8 tax shall not be later than the 14th day 

9 after the last day of the semimonthly pe10 riod during which the article is removed 

11 from the first such warehouse. 

12 ‘‘(iii) FOREIGN TRADE ZONES.—Ex13 cept as provided in clause (iv) and in regu14 lations prescribed by the Secretary, articles 

15 brought into a foreign trade zone shall, 

16 notwithstanding any other provision of law, 

17 be treated for purposes of this subsection 

18 as if such zone were a single customs 

19 warehouse. 

20 ‘‘(iv) EXCEPTION FOR ARTICLES DES21 TINED FOR EXPORT.—Clauses (ii) and (iii) 

22 shall not apply to any article which is 

23 shown to the satisfaction of the Secretary 

24 to be destined for export. 


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•S 4591 IS

1 ‘‘(C) CANNABIS PRODUCTS BROUGHT INTO

2 THE UNITED STATES FROM PUERTO RICO.—In 

3 the case of cannabis products which are 

4 brought into the United States from Puerto 

5 Rico and subject to tax under section 7652, the 

6 last day for payment of tax shall be the 14th 

7 day after the last day of the semimonthly pe8 riod during which the article is brought into the 

9 United States. 

10 ‘‘(D) SPECIAL RULE WHERE DUE DATE

11 FALLS ON SATURDAY, SUNDAY, OR HOLIDAY.— 

12 Notwithstanding section 7503, if, but for this 

13 subparagraph, the due date under this para14 graph would fall on a Saturday, Sunday, or a 

15 legal holiday (as defined in section 7503), such 

16 due date shall be the immediately preceding day 

17 which is not a Saturday, Sunday, or such a hol18 iday. 

19 ‘‘(E) SPECIAL RULE FOR UNLAWFULLY

20 PRODUCED CANNABIS PRODUCTS.—In the case 

21 of any cannabis products produced in the 

22 United States at any place other than the 

23 premises of a producer that has filed the bond 

24 and obtained the authorization required under 


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•S 4591 IS

1 this chapter, tax shall be due and payable im2 mediately upon production. 

3 ‘‘(3) TAXPAYERS LIABLE FOR TAXES OF NOT

4 MORE THAN $100,000.— 

5 ‘‘(A) IN GENERAL.— 

6 ‘‘(i) MORE THAN $10,000 AND NOT

7 MORE THAN $100,000 IN TAXES.—Except as 

8 provided in clause (ii), in the case of any 

9 taxpayer who reasonably expects to be lia10 ble for not more than $100,000 in taxes 

11 imposed with respect to cannabis products 

12 under sections 5901 and 7652 for the cal13 endar year and who was liable for not 

14 more than $100,000 in such taxes in the 

15 preceding calendar year, the last day for 

16 the payment of tax on withdrawals, remov17 als, and entries (and articles brought into 

18 the United States from Puerto Rico) shall 

19 be the 14th day after the last day of the 

20 calendar quarter during which the action 

21 giving rise to the imposition of such tax oc22 curs. 

23 ‘‘(ii) NOT MORE THAN $10,000 IN

24 TAXES.—In the case of any taxpayer who 

25 reasonably expects to be liable for not 


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•S 4591 IS

1 more than $10,000 in taxes imposed with 

2 respect to cannabis products under sec3 tions 5901 and 7652 for the calendar year 

4 and who was liable for not more than 

5 $10,000 in such taxes in the preceding cal6 endar year, the last day for the payment of 

7 tax on withdrawals, removals, and entries 

8 (and articles brought into the United 

9 States from Puerto Rico) shall be the 14th 

10 day after the last day of the calendar year. 

11 ‘‘(B) NO APPLICATION AFTER LIMIT EX12 CEEDED.— 

13 ‘‘(i) EXCEEDS $100,000 LIMIT.—Sub14 paragraph (A)(i) shall not apply to any 

15 taxpayer for any portion of the calendar 

16 year following the first date on which the 

17 aggregate amount of tax due under sec18 tions 5901 and 7652 from such taxpayer 

19 during such calendar year exceeds 

20 $100,000, and any tax under such sections 

21 which has not been paid on such date shall 

22 be due on the 14th day after the last day 

23 of the semimonthly period in which such 

24 date occurs. 


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•S 4591 IS

1 ‘‘(ii) EXCEEDS $10,000 LIMIT.—Sub2 paragraph (A)(ii) shall not apply to any 

3 taxpayer for any portion of the calendar 

4 year following the first date on which the 

5 aggregate amount of tax due under sec6 tions 5901 and 7652 from such taxpayer 

7 during such calendar year exceeds 

8 $10,000, and any tax under such sections 

9 which has not been paid on such date shall 

10 be due on the 14th day after the last day 

11 of the calendar quarter in which such date 

12 occurs. 

13 ‘‘(C) CALENDAR QUARTER.—For purposes 

14 of this paragraph, the term ‘calendar quarter’ 

15 has the same meaning given such term under 

16 section 5061(d)(4)(C). 

17 ‘‘(4) PAYMENT BY ELECTRONIC FUND TRANS18 FER.—Any person who in any 12-month period, end19 ing December 31, was liable for a gross amount 

20 equal to or exceeding $5,000,000 in taxes imposed 

21 on cannabis products by section 5901 (or section 

22 7652) shall pay such taxes during the succeeding 

23 calendar year by electronic fund transfer (as defined 

24 in section 5061(e)(2)) to a Federal Reserve Bank. 

25 Rules similar to the rules of section 5061(e)(3) shall 


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1 apply to the $5,000,000 amount specified in the pre2 ceding sentence. 

3 ‘‘(c) DETERMINATION OF PRICE.— 

4 ‘‘(1) CONSTRUCTIVE SALE PRICE.— 

5 ‘‘(A) IN GENERAL.—If an article is sold di6 rectly to consumers, sold on consignment, or 

7 sold (otherwise than through an arm’s length 

8 transaction) at less than the fair market price, 

9 or if the price for which the article sold cannot 

10 be determined, the tax under section 5901(a) 

11 shall be— 

12 ‘‘(i) computed on the price for which 

13 such articles are sold, in the ordinary 

14 course of trade, by producers thereof, as 

15 determined by the Secretary, and 

16 ‘‘(ii) imposed on either person in17 volved in such sale, as determined by the 

18 Secretary. 

19 ‘‘(B) ARM’S LENGTH.— 

20 ‘‘(i) IN GENERAL.—For purposes of 

21 this section, a sale is considered to be 

22 made under circumstances otherwise than 

23 at arm’s length if— 

24 ‘‘(I) the parties are members of 

25 the same controlled group, whether or 


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1 not such control is actually exercised 

2 to influence the sale price, 

3 ‘‘(II) the parties are members of 

4 a family, as defined in section 

5 267(c)(4), or 

6 ‘‘(III) the sale is made pursuant 

7 to special arrangements between a 

8 producer and a purchaser. 

9 ‘‘(ii) CONTROLLED GROUPS.— 

10 ‘‘(I) IN GENERAL.—The term 

11 ‘controlled group’ has the meaning 

12 given to such term by subsection (a) 

13 of section 1563, except that ‘more 

14 than 50 percent’ shall be substituted 

15 for ‘at least 80 percent’ each place it 

16 appears in such subsection. 

17 ‘‘(II) CONTROLLED GROUPS

18 WHICH INCLUDE NONINCORPORATED

19 PERSONS.—Under regulations pre20 scribed by the Secretary, principles 

21 similar to the principles of subclause 

22 (I) shall apply to a group of persons 

23 under common control where one or 

24 more of such persons is not a corpora25 tion. 


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1 ‘‘(2) CONTAINERS, PACKING, AND TRANSPOR2 TATION CHARGES.—In determining, for the purposes 

3 of this chapter, the price for which an article is sold, 

4 there shall be included any charge for coverings and 

5 containers of whatever nature, and any charge inci6 dent to placing the article in condition packed ready 

7 for shipment, but there shall be excluded the amount 

8 of tax imposed by this chapter, whether or not stat9 ed as a separate charge. A transportation, delivery, 

10 insurance, installation, or other charge (not required 

11 by the preceding sentence to be included) shall be 

12 excluded from the price only if the amount thereof 

13 is established to the satisfaction of the Secretary in 

14 accordance with regulations. 

15 ‘‘(3) DETERMINATION OF APPLICABLE EQUIVA16 LENT AMOUNTS.—Paragraphs (1) and (2) shall 

17 apply for purposes of section 5901(c) only to the ex18 tent that the Secretary determines appropriate. 

19 ‘‘(d) PARTIAL PAYMENTS AND INSTALLMENT AC20 COUNTS.— 

21 ‘‘(1) PARTIAL PAYMENTS.—In the case of— 

22 ‘‘(A) a contract for the sale of an article 

23 wherein it is provided that the price shall be 

24 paid by installments and title to the article sold 


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1 does not pass until a future date notwith2 standing partial payment by installments, 

3 ‘‘(B) a conditional sale, or 

4 ‘‘(C) a chattel mortgage arrangement 

5 wherein it is provided that the sales price shall 

6 be paid in installments, 

7 there shall be paid upon each payment with respect 

8 to the article a percentage of such payment equal to 

9 the rate of tax in effect on the date such payment 

10 is due. 

11 ‘‘(2) SALES OF INSTALLMENT ACCOUNTS.—If 

12 installment accounts, with respect to payments on 

13 which tax is being computed as provided in para14 graph (1), are sold or otherwise disposed of, then 

15 paragraph (1) shall not apply with respect to any 

16 subsequent payments on such accounts (other than 

17 subsequent payments on returned accounts with re18 spect to which credit or refund is allowable by rea19 son of section 6416(b)(5)), but instead— 

20 ‘‘(A) there shall be paid an amount equal 

21 to the difference between— 

22 ‘‘(i) the tax previously paid on the 

23 payments on such installment accounts, 

24 and 


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1 ‘‘(ii) the total tax which would be pay2 able if such installment accounts had not 

3 been sold or otherwise disposed of (com4 puted as provided in paragraph (1)), ex5 cept that 

6 ‘‘(B) if any such sale is pursuant to the 

7 order of, or subject to the approval of, a court 

8 of competent jurisdiction in a bankruptcy or in9 solvency proceeding, the amount computed 

10 under subparagraph (A) shall not exceed the 

11 sum of the amounts computed by multiplying— 

12 ‘‘(i) the proportionate share of the 

13 amount for which such accounts are sold 

14 which is allocable to each unpaid install15 ment payment, by 

16 ‘‘(ii) the rate of tax under this chap17 ter in effect on the date such unpaid in18 stallment payment is or was due. 

19 The sum of the amounts payable under this 

20 subsection in respect of the sale of any article 

21 shall not exceed the total tax. 

22 ‘‘SEC. 5904. EXEMPTION FROM TAX; TRANSFERS IN BOND. 

23 ‘‘(a) EXEMPTION FROM TAX.—Cannabis products on 

24 which the internal revenue tax has not been paid or deter25 mined may, subject to such regulations as the Secretary 


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1 shall prescribe, be withdrawn from the bonded premises 

2 of any producer in approved containers free of tax and 

3 not for resale for use— 

4 ‘‘(1) exclusively in scientific research by a lab5 oratory, 

6 ‘‘(2) by a proprietor of a cannabis production 

7 facility in research, development, or testing (other 

8 than consumer testing or other market analysis) of 

9 processes, systems, materials, or equipment, relating 

10 to cannabis or cannabis operations, under such limi11 tations and conditions as to quantities, use, and ac12 countability as the Secretary may by regulations re13 quire for the protection of the revenue, 

14 ‘‘(3) in any drug containing cannabis which is 

15 in compliance with Federal and State law, or 

16 ‘‘(4) by the United States or any governmental 

17 agency thereof, any State, any political subdivision 

18 of a State, or the District of Columbia, for non19 consumption purposes. 

20 ‘‘(b) CANNABIS PRODUCTS TRANSFERRED OR RE21 MOVED IN BOND FROM DOMESTIC FACTORIES AND EX22 PORT WAREHOUSES.— 

23 ‘‘(1) IN GENERAL.—Subject to such regulations 

24 and under such bonds as the Secretary shall pre25 scribe, a producer or export warehouse proprietor 


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1 may transfer cannabis products, without payment of 

2 tax, to the bonded premises of another producer or 

3 export warehouse proprietor, or remove such articles, 

4 without payment of tax, for shipment to a foreign 

5 country or a possession of the United States, or for 

6 consumption beyond the jurisdiction of the internal 

7 revenue laws of the United States. 

8 ‘‘(2) LABELING.—Cannabis products may not 

9 be transferred or removed under this subsection un10 less such products bear such marks, labels, or no11 tices as the Secretary shall by regulations prescribe. 

12 ‘‘(c) CANNABIS PRODUCTS RELEASED IN BOND

13 FROM CUSTOMS CUSTODY.—Cannabis products imported 

14 or brought into the United States may be released from 

15 customs custody, without payment of tax, for delivery to 

16 a producer or export warehouse proprietor if such articles 

17 are not put up in packages, in accordance with such regu18 lations and under such bond as the Secretary shall pre19 scribe. 

20 ‘‘(d) CANNABIS PRODUCTS EXPORTED AND RE21 TURNED.—Cannabis products classifiable under item 

22 9801.00.10 of the Harmonized Tariff Schedule of the 

23 United States (relating to duty on certain articles pre24 viously exported and returned), as in effect on the date 

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1 portunity Act, may be released from customs custody, 

2 without payment of that part of the duty attributable to 

3 the internal revenue tax for delivery to the original pro4 ducer of such cannabis products or to the export ware5 house proprietor authorized by such producer to receive 

6 such products, in accordance with such regulations and 

7 under such bond as the Secretary shall prescribe. Upon 

8 such release such products shall be subject to this chapter 

9 as if they had not been exported or otherwise removed 

10 from internal revenue bond. 

11 ‘‘SEC. 5905. CREDIT, REFUND, OR DRAWBACK OF TAX. 

12 ‘‘(a) CREDIT OR REFUND.— 

13 ‘‘(1) IN GENERAL.—Credit or refund of any tax 

14 imposed by this chapter or section 7652 shall be al15 lowed or made (without interest) to the cannabis en16 terprise on proof satisfactory to the Secretary that 

17 the claimant cannabis enterprise has paid the tax 

18 on— 

19 ‘‘(A) cannabis products withdrawn from 

20 the market by the claimant, or 

21 ‘‘(B) such products lost (otherwise than by 

22 theft) or destroyed, by fire, casualty, or act of 

23 God, while in the possession or ownership of the 

24 claimant. 


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1 ‘‘(2) CANNABIS PRODUCTS LOST OR DE2 STROYED IN BOND.— 

3 ‘‘(A) EXTENT OF LOSS ALLOWANCE.—No 

4 tax shall be collected in respect of cannabis 

5 products lost or destroyed while in bond, except 

6 that such tax shall be collected— 

7 ‘‘(i) in the case of loss by theft, unless 

8 the Secretary finds that the theft occurred 

9 without connivance, collusion, fraud, or 

10 negligence on the part of the proprietor of 

11 the cannabis production facility, owner, 

12 consignor, consignee, bailee, or carrier, or 

13 their employees or agents, 

14 ‘‘(ii) in the case of voluntary destruc15 tion, unless such destruction is carried out 

16 as provided in paragraph (3), and 

17 ‘‘(iii) in the case of an unexplained 

18 shortage of cannabis products. 

19 ‘‘(B) PROOF OF LOSS.—In any case in 

20 which cannabis products are lost or destroyed, 

21 whether by theft or otherwise, the Secretary 

22 may require the proprietor of a cannabis pro23 duction facility or other person liable for the 

24 tax to file a claim for relief from the tax and 

25 submit proof as to the cause of such loss. In 


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1 every case where it appears that the loss was by 

2 theft, the burden shall be upon the proprietor 

3 of the cannabis production facility or other per4 son responsible for the tax under section 5901 

5 to establish to the satisfaction of the Secretary 

6 that such loss did not occur as the result of 

7 connivance, collusion, fraud, or negligence on 

8 the part of the proprietor of the cannabis pro9 duction facility, owner, consignor, consignee, 

10 bailee, or carrier, or their employees or agents. 

11 ‘‘(C) REFUND OF TAX.—In any case where 

12 the tax would not be collectible by virtue of sub13 paragraph (A), but such tax has been paid, the 

14 Secretary shall refund such tax. 

15 ‘‘(D) LIMITATIONS.—Except as provided in 

16 subparagraph (E), no tax shall be abated, re17 mitted, credited, or refunded under this para18 graph where the loss occurred after the tax was 

19 determined. The abatement, remission, credit, 

20 or refund of taxes provided for by subpara21 graphs (A) and (C) in the case of loss of can22 nabis products by theft shall only be allowed to 

23 the extent that the claimant is not indemnified 

24 against or recompensed in respect of the tax for 

25 such loss. 


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1 ‘‘(E) APPLICABILITY.—The provisions of 

2 this paragraph shall extend to and apply in re3 spect of cannabis products lost after the tax 

4 was determined and before completion of the 

5 physical removal of the cannabis products from 

6 the bonded premises. 

7 ‘‘(3) VOLUNTARY DESTRUCTION.—The propri8 etor of a cannabis production facility or other per9 sons liable for the tax imposed by this chapter or by 

10 section 7652 with respect to any cannabis product in 

11 bond may voluntarily destroy such products, but 

12 only if such destruction is under such supervision 

13 and under such regulations as the Secretary may 

14 prescribe. 

15 ‘‘(4) LIMITATION.—Any claim for credit or re16 fund of tax under this subsection shall be filed with17 in 6 months after the date of the withdrawal from 

18 the market, loss, or destruction of the products to 

19 which the claim relates, and shall be in such form 

20 and contain such information as the Secretary shall 

21 by regulations prescribe. 

22 ‘‘(b) DRAWBACK OF TAX.—There shall be an allow23 ance of drawback of tax paid on cannabis products, when 

24 shipped from the United States, in accordance with such 


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1 regulations and upon the filing of such bond as the Sec2 retary shall prescribe. 

3 ‘‘SEC. 5906. DRAWBACK ON TAX FOR CERTAIN USES. 

4 ‘‘(a) ELIGIBILITY.—Any person using cannabis on 

5 which the tax under this subchapter has been determined, 

6 in the manufacture or production of— 

7 ‘‘(1) a drug containing cannabis which is in 

8 compliance with Federal and State law, or 

9 ‘‘(2) extracts with a tetrahydrocannabinol con10 centration of not more than the allowable 

11 tetrahydrocannabinol equivalent amount as described 

12 in paragraph (1)(C) of section 297A of the Agricul13 tural Marketing Act of 1946 (7 U.S.C. 1639o), 

14 shall be eligible for drawback at the time when such can15 nabis is used in the manufacture of such products as pro16 vided for in this section. 

17 ‘‘(b) REGISTRATION AND REGULATION.—Every per18 son claiming drawback under this section shall— 

19 ‘‘(1) register annually with the Secretary, 

20 ‘‘(2) keep such books and records as may be 

21 necessary to establish the fact that cannabis received 

22 by such person and on which the tax has been deter23 mined were used in a manner described in sub24 section (a), and 


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1 ‘‘(3) be subject to such rules and regulations in 

2 relation thereto as the Secretary shall prescribe to 

3 secure the Treasury against frauds. 

4 ‘‘(c) INVESTIGATION OF CLAIMS.—For the purpose 

5 of ascertaining the correctness of any claim filed under 

6 this section, the Secretary is authorized to— 

7 ‘‘(1) examine any books, papers, records, or 

8 memoranda bearing upon the matters required to be 

9 alleged in the claim, 

10 ‘‘(2) require the attendance of the person filing 

11 the claim or of any officer or employee of such per12 son or the attendance of any other person having 

13 knowledge in the premises, and 

14 ‘‘(3) take testimony with reference to any mat15 ter covered by the claim and to administer oaths to 

16 any person giving such testimony. 

17 ‘‘(d) DRAWBACK.— 

18 ‘‘(1) RATE OF DRAWBACK.—In the case of can19 nabis on which the tax under this subchapter has 

20 been paid or determined, and which has been used 

21 as provided in this section, a drawback shall be al22 lowed at a rate equal to 90 percent of the amount 

23 of such tax which has been paid or determined. 

24 ‘‘(2) CLAIMS.— 


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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), such drawback shall be due and pay3 able quarterly upon filing of a proper claim 

4 with the Secretary. 

5 ‘‘(B) EXCEPTION.— 

6 ‘‘(i) MONTHLY BASIS.—In the case of 

7 any person entitled to such drawback who 

8 elects in writing to file monthly claims 

9 therefor, such drawback shall be due and 

10 payable monthly upon filing of a proper 

11 claim with the Secretary. 

12 ‘‘(ii) BOND REQUIREMENT.—The Sec13 retary may require persons electing to file 

14 monthly drawback claims under this sub15 paragraph to file with the Secretary a bond 

16 or other security in such amount and with 

17 such conditions as the Secretary shall by 

18 regulations prescribe. 

19 ‘‘(iii) REVOCATION.—Any election 

20 under clause (i) may be revoked on filing 

21 of notice thereof with the Secretary. 

22 ‘‘(C) ADDITIONAL REQUIREMENT.—No 

23 claim under this section shall be allowed unless 

24 filed with the Secretary within the 6 months 

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1 nabis covered by the claim was used as provided 

2 in this section. 

3 ‘‘(3) ALLOWANCE OF DRAWBACK EVEN WHERE

4 CERTAIN REQUIREMENTS NOT MET.— 

5 ‘‘(A) IN GENERAL.—No claim for draw6 back under this subsection shall be denied in 

7 the case of a failure to comply with any require8 ment imposed under this section or any rule or 

9 regulation issued thereunder upon the claim10 ant’s establishing to the satisfaction of the Sec11 retary that cannabis on which the tax has been 

12 paid or determined was in fact used in a man13 ner described in subsection (a). 

14 ‘‘(B) PENALTY.— 

15 ‘‘(i) IN GENERAL.—In the case of a 

16 failure to comply with any requirement im17 posed under this section or any rule or reg18 ulation issued thereunder, the claimant 

19 shall be liable for a penalty of $1,000 for 

20 each failure to comply unless it is shown 

21 that the failure to comply was due to rea22 sonable cause. 

23 ‘‘(ii) PENALTY MAY NOT EXCEED

24 AMOUNT OF CLAIM.—The aggregate 

25 amount of the penalties imposed under 


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1 clause (i) for failures described in subpara2 graph (A) in respect of any claim shall not 

3 exceed the amount of such claim (deter4 mined without regard to clause (i)). 

5 ‘‘(C) PENALTY TREATED AS TAX.—The 

6 penalty imposed by subparagraph (B) shall be 

7 assessed, collected, and paid in the same man8 ner as taxes, as provided in section 6665(a). 

9 ‘‘Subchapter B—Authorization and Bond 

10 Requirements 

‘‘Sec. 5911. Establishment and bond. 

‘‘Sec. 5912. Application. 

‘‘Sec. 5913. Cannabis production facility. 

11 ‘‘SEC. 5911. ESTABLISHMENT AND BOND. 

12 ‘‘(a) PROHIBITION ON PRODUCTION OUTSIDE OF

13 BONDED CANNABIS PRODUCTION FACILITY.— 

14 ‘‘(1) IN GENERAL.—Except as authorized by 

15 the Secretary or on the bonded premises of a can16 nabis production facility duly authorized to produce 

17 cannabis products according to law, no cannabis 

18 product may be planted, cultivated, harvested, 

19 grown, manufactured, produced, compounded, con20 verted, processed, prepared, or packaged in any 

21 building or on any premises. 

22 ‘‘(2) AUTHORIZED PRODUCERS ONLY.—Any 

23 person establishing a cannabis production facility 

24 shall, prior to commencing operations— 


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1 ‘‘(A) make application to the Secretary 

2 pursuant to section 5912, 

3 ‘‘(B) file the bond required under sub4 section (b), and 

5 ‘‘(C) receive authorization from the Sec6 retary to operate. 

7 ‘‘(3) PERSONAL USE EXCEPTION.—This sub8 section shall not apply with respect the activities of 

9 an individual who is not treated as a producer by 

10 reason of section 5902(b)(2)(B). 

11 ‘‘(b) BOND.— 

12 ‘‘(1) WHEN REQUIRED.—Every person, before 

13 commencing business as a producer or an export 

14 warehouse proprietor, shall file such bond, condi15 tioned upon compliance with this chapter and regu16 lations issued thereunder, in such form, amount, and 

17 manner as the Secretary shall by regulation pre18 scribe. A new or additional bond may be required 

19 whenever the Secretary considers such action nec20 essary for the protection of the revenue. 

21 ‘‘(2) APPROVAL OR DISAPPROVAL.—No person 

22 shall engage in such business until he receives notice 

23 of approval of such bond. A bond may be dis24 approved, upon notice to the principal on the bond, 


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1 if the Secretary determines that the bond is not ade2 quate to protect the revenue. 

3 ‘‘(3) CANCELLATION.—Any bond filed here4 under may be canceled, upon notice to the principal 

5 on the bond, whenever the Secretary determines that 

6 the bond no longer adequately protects the revenue. 

7 ‘‘(4) REMOVAL OF BOND REQUIREMENTS.— 

8 ‘‘(A) IN GENERAL.—During any period to 

9 which subparagraph (A) of section 5903(b)(3) 

10 applies to a taxpayer (determined after applica11 tion of subparagraph (B) thereof), such tax12 payer shall not be required to furnish any bond 

13 with respect to engaging in any business as a 

14 producer or an export warehouse proprietor. 

15 ‘‘(B) SATISFACTION OF BOND REQUIRE16 MENTS.—Any taxpayer for any period described 

17 in subparagraph (A) shall be treated as if suffi18 cient bond has been furnished for purposes of 

19 engaging in such business for purposes of any 

20 requirements relating to bonds under this chap21 ter. 

22 ‘‘SEC. 5912. APPLICATION. 

23 ‘‘The application required pursuant to this section 

24 shall disclose, as regulations issued by the Secretary shall 

25 provide, such information as may be necessary to enable 


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1 the Secretary to determine the location and extent of the 

2 premises, the type of operations to be conducted on such 

3 premises, and whether the operations will be in conformity 

4 with law and regulations, consistent with the requirements 

5 under section 302 of the Federal Alcohol Administration 

6 Act. 

7 ‘‘SEC. 5913. CANNABIS PRODUCTION FACILITY. 

8 ‘‘A cannabis production facility, including noncontig9 uous portions thereof, shall be so located, constructed, and 

10 equipped, as to afford adequate protection to the revenue, 

11 as regulations prescribed by the Secretary may provide. 

12 ‘‘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. 

13 ‘‘SEC. 5921. INVENTORIES, REPORTS, AND RECORDS. 

14 ‘‘Every cannabis enterprise shall— 

15 ‘‘(1) make a true and accurate inventory at the 

16 time of commencing business, at the time of con17 cluding business, and at such other times, in such 

18 manner and form, and to include such items, as the 

19 Secretary shall by regulation prescribe, with such in20 ventories to be subject to verification by any internal 

21 revenue officer, 


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1 ‘‘(2) make reports containing such information, 

2 in such form, at such times, and for such periods as 

3 the Secretary shall by regulation prescribe, and 

4 ‘‘(3) keep such records in such manner as the 

5 Secretary shall by regulation prescribe, with such 

6 records to be available for inspection by any internal 

7 revenue officer during business hours. 

8 ‘‘SEC. 5922. PACKAGING AND LABELING. 

9 ‘‘(a) PACKAGES.—All cannabis products shall, before 

10 removal, be put up in such packages as the Secretary shall 

11 by regulation prescribe. 

12 ‘‘(b) MARKS, LABELS, AND NOTICES.—Every pack13 age of cannabis products shall, before removal, bear the 

14 marks, labels, and notices if any, that the Secretary by 

15 regulation prescribes. 

16 ‘‘(c) LOTTERY FEATURES.—No certificate, coupon, 

17 or other device purporting to be or to represent a ticket, 

18 chance, share, or an interest in, or dependent on, the event 

19 of a lottery shall be contained in, attached to, or stamped, 

20 marked, written, or printed on any package of cannabis 

21 products. 

22 ‘‘(d) INDECENT OR IMMORAL MATERIAL PROHIB23 ITED.—No indecent or immoral picture, print, or rep24 resentation shall be contained in, attached to, or stamped, 


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1 marked, written, or printed on any package of cannabis 

2 products. 

3 ‘‘(e) EXCEPTIONS.—Subject to regulations prescribed 

4 by the Secretary, cannabis products may be exempted 

5 from subsections (a) and (b) if such products are— 

6 ‘‘(1) for experimental purposes, or 

7 ‘‘(2) transferred to the bonded premises of an8 other producer or export warehouse proprietor or re9 leased in bond from customs custody for delivery to 

10 a producer. 

11 ‘‘SEC. 5923. PURCHASE, RECEIPT, POSSESSION, OR SALE OF 

12 CANNABIS PRODUCTS AFTER REMOVAL. 

13 ‘‘(a) RESTRICTION.—No person shall— 

14 ‘‘(1) with intent to defraud the United States, 

15 purchase, receive, possess, offer for sale, or sell or 

16 otherwise dispose of, after removal, any cannabis 

17 products— 

18 ‘‘(A) upon which the tax has not been paid 

19 or determined in the manner and at the time 

20 prescribed by this chapter or regulations there21 under, or 

22 ‘‘(B) which, after removal without payment 

23 of tax pursuant to section 5904(a), have been 

24 diverted from the applicable purpose or use 

25 specified in that section, 


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1 ‘‘(2) with intent to defraud the United States, 

2 purchase, receive, possess, offer for sale, or sell or 

3 otherwise dispose of, after removal, any cannabis 

4 products which are not put up in packages as re5 quired under section 5922 or which are put up in 

6 packages not bearing the marks, labels, and notices, 

7 as required under such section, or 

8 ‘‘(3) otherwise than with intent to defraud the 

9 United States, purchase, receive, possess, offer for 

10 sale, or sell or otherwise dispose of, after removal, 

11 any cannabis products which are not put up in pack12 ages as required under section 5922 or which are 

13 put up in packages not bearing the marks, labels, 

14 and notices, as required under such section. 

15 ‘‘(b) EXCEPTION.—Paragraph (3) of subsection (a) 

16 shall not prevent the sale or delivery of cannabis products 

17 directly to consumers from proper packages, nor apply to 

18 such articles when so sold or delivered. 

19 ‘‘(c) LIABILITY TO TAX.—Any person who possesses 

20 cannabis products in violation of paragraph (1) or (2) of 

21 subsection (a) shall be liable for a tax equal to the tax 

22 on such articles. 


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1 ‘‘SEC. 5924. RESTRICTIONS RELATING TO MARKS, LABELS, 

2 NOTICES, AND PACKAGES. 

3 ‘‘No person shall, with intent to defraud the United 

4 States, destroy, obliterate, or detach any mark, label, or 

5 notice prescribed or authorized, by this chapter or regula6 tions thereunder, to appear on, or be affixed to, any pack7 age of cannabis products before such package is emptied. 

8 ‘‘SEC. 5925. RESTRICTION ON IMPORTATION OF PRE9 VIOUSLY EXPORTED CANNABIS PRODUCTS. 

10 ‘‘(a) EXPORT LABELED CANNABIS PRODUCTS.— 

11 ‘‘(1) IN GENERAL.—Cannabis products pro12 duced in the United States and labeled for expor13 tation under this chapter— 

14 ‘‘(A) may be transferred to or removed 

15 from the premises of a producer or an export 

16 warehouse proprietor only if such articles are 

17 being transferred or removed without tax in ac18 cordance with section 5904, 

19 ‘‘(B) may be imported or brought into the 

20 United States, after their exportation, only if 

21 such articles either are eligible to be released 

22 from customs custody with the partial duty ex23 emption provided in section 5904(d) or are re24 turned to the original producer of such article 

25 as provided in section 5904(c), and 


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1 ‘‘(C) may not be sold or held for sale for 

2 domestic consumption in the United States un3 less such articles are removed from their export 

4 packaging and repackaged by the original pro5 ducer into new packaging that does not contain 

6 an export label. 

7 ‘‘(2) ALTERATIONS BY PERSONS OTHER THAN

8 ORIGINAL PRODUCER.—This section shall apply to 

9 articles labeled for export even if the packaging or 

10 the appearance of such packaging to the consumer 

11 of such articles has been modified or altered by a 

12 person other than the original producer so as to re13 move or conceal or attempt to remove or conceal (in14 cluding by the placement of a sticker over) any ex15 port label. 

16 ‘‘(3) EXPORTS INCLUDE SHIPMENTS TO PUER17 TO RICO.—For purposes of this section, section 

18 5904(d), section 5931, and such other provisions as 

19 the Secretary may specify by regulations, references 

20 to exportation shall be treated as including a ref21 erence to shipment to the Commonwealth of Puerto 

22 Rico. 

23 ‘‘(b) EXPORT LABEL.—For purposes of this section, 

24 an article is labeled for export or contains an export label 


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1 if it bears the mark, label, or notice required under section 

2 5904(b). 

3 ‘‘Subchapter D—Penalties 

‘‘Sec. 5931. Civil penalties. 

‘‘Sec. 5932. Criminal penalties. 

4 ‘‘SEC. 5931. CIVIL PENALTIES. 

5 ‘‘(a) OMITTING THINGS REQUIRED OR DOING

6 THINGS FORBIDDEN.—Whoever willfully omits, neglects, 

7 or refuses to comply with any duty imposed upon them 

8 by this chapter, or to do, or cause to be done, any of the 

9 things required by this chapter, or does anything prohib10 ited by this chapter, shall in addition to any other penalty 

11 provided in this title, be liable to a penalty of $10,000, 

12 to be recovered, with costs of suit, in a civil action, except 

13 where a penalty under subsection (b) or (c) or under sec14 tion 6651 or 6653 or part II of subchapter A of chapter 

15 68 may be collected from such person by assessment. 

16 ‘‘(b) FAILURE TO PAY TAX.—Whoever fails to pay 

17 any tax imposed by this chapter at the time prescribed 

18 by law or regulations, shall, in addition to any other pen19 alty provided in this title, be liable to a penalty of 10 per20 cent of the tax due but unpaid. 

21 ‘‘(c) SALE OF CANNABIS OR CANNABIS PRODUCTS

22 FOR EXPORT.— 

23 ‘‘(1) Every person who sells, relands, or receives 

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1 nabis products which have been labeled or shipped 

2 for exportation under this chapter, 

3 ‘‘(2) every person who sells or receives such re4 landed cannabis products, and 

5 ‘‘(3) every person who aids or abets in such 

6 selling, relanding, or receiving, 

7 shall, in addition to the tax and any other penalty provided 

8 in this title, be liable for a penalty equal to the greater 

9 of $10,000 or 10 times the amount of the tax imposed 

10 by this chapter. All cannabis products relanded within the 

11 jurisdiction of the United States shall be forfeited to the 

12 United States and destroyed. All vessels, vehicles, and air13 craft used in such relanding or in removing such cannabis 

14 products from the place where relanded, shall be forfeited 

15 to the United States. 

16 ‘‘(d) APPLICABILITY OF SECTION 6665.—The pen17 alties imposed by subsections (b) and (c) shall be assessed, 

18 collected, and paid in the same manner as taxes, as pro19 vided in section 6665(a). 

20 ‘‘(e) CROSS REFERENCES.—For penalty for failure to 

21 make deposits or for overstatement of deposits, see section 

22 6656. 

23 ‘‘SEC. 5932. CRIMINAL PENALTIES. 

24 ‘‘(a) FRAUDULENT OFFENSES.—Whoever, with in25 tent to defraud the United States— 


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1 ‘‘(1) engages in business as a cannabis enter2 prise without filing the application and obtaining the 

3 authorization where required by this chapter or reg4 ulations thereunder, 

5 ‘‘(2) fails to keep or make any record, return, 

6 report, or inventory, or keeps or makes any false or 

7 fraudulent record, return, report, or inventory, re8 quired by this chapter or regulations thereunder, 

9 ‘‘(3) refuses to pay any tax imposed by this 

10 chapter, or attempts in any manner to evade or de11 feat the tax or the payment thereof, 

12 ‘‘(4) sells or otherwise transfers, contrary to 

13 this chapter or regulations thereunder, any cannabis 

14 products subject to tax under this chapter, or 

15 ‘‘(5) purchases, receives, or possesses, with in16 tent to redistribute or resell, any cannabis product— 

17 ‘‘(A) upon which the tax has not been paid 

18 or determined in the manner and at the time 

19 prescribed by this chapter or regulations there20 under, or 

21 ‘‘(B) which, without payment of tax pursu22 ant to section 5904, have been diverted from 

23 the applicable purpose or use specified in that 

24 section, 


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1 shall, for each such offense, be fined not more than 

2 $10,000, or imprisoned not more than 5 years, or both. 

3 ‘‘(b) LIABILITY TO TAX.—Any person who possesses 

4 cannabis products in violation of subsection (a) shall be 

5 liable for a tax equal to the tax on such articles.’’. 

6 (b) ESTABLISHMENT OF TRUST FUND.—Subchapter 

7 A of chapter 98 of the Internal Revenue Code of 1986 

8 is amended by adding at the end the following new section: 

9 ‘‘SEC. 9512. OPPORTUNITY TRUST FUND. 

10 ‘‘(a) CREATION OF TRUST FUND.—There is estab11 lished in the Treasury of the United States a trust fund 

12 to be known as the ‘Opportunity Trust Fund’ (referred 

13 to in this section as the ‘Trust Fund’), consisting of such 

14 amounts as may be appropriated or credited to such fund 

15 as provided in this section or section 9602(b). 

16 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here17 by appropriated to the Trust Fund amounts equivalent to 

18 the net revenues received in the Treasury from the taxes 

19 imposed under subchapter A of chapter 56. 

20 ‘‘(c) TRANSFERS TO GENERAL FUND.—The Sec21 retary shall pay from time to time from the Trust Fund 

22 into the general fund of the Treasury amounts equivalent 

23 to the amounts appropriated under the Cannabis Adminis24 tration and Opportunity Act.’’. 


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1 (c) STUDY.—Not later than 2 years after the date 

2 of the enactment of this Act, and every 5 years thereafter, 

3 the Secretary of the Treasury, or the Secretary’s delegate, 

4 shall— 

5 (1) conduct a study concerning the characteris6 tics of the cannabis industry, including— 

7 (A) the number of persons operating can8 nabis enterprises at each level of such industry, 

9 (B) the volume of sales, 

10 (C) the amount of tax collected each year, 

11 (D) the areas of evasion, and 

12 (E) the impact of disparate State taxes on 

13 diversion and smuggling of cannabis products, 

14 and 

15 (2) submit to Congress recommendations to im16 prove the regulation of the industry and the admin17 istration of the related tax. 

18 (d) ANNUAL REPORTS REGARDING DETERMINATION

19 OF APPLICABLE RATES.—Not later than 6 months before 

20 the beginning of each calendar year to which section 

21 5901(a)(2) of the Internal Revenue Code of 1986 (as 

22 added by this section) applies, the Secretary of the Treas23 ury, or the Secretary’s delegate, shall make publicly avail24 able a detailed description of the methodology which the 

25 Secretary anticipates using to determine the applicable 


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1 rate per ounce and the applicable rate per gram which 

2 will apply for such calendar year under section 5901(c)(2) 

3 of such Code. 

4 (e) DRAWBACK ON TAX FOR DISTILLED SPIRITS

5 USED IN PRODUCTION OF CANNABIS OR HEMP.—Section 

6 5111 of the Internal Revenue Code of 1986 is amended 

7 by striking ‘‘or perfume’’ and inserting ‘‘perfume, can8 nabis products, or hemp-derived products’’. 

9 (f) INTEREST OF INTERNAL REVENUE OFFICER OR

10 EMPLOYEE IN PRODUCTION OF CANNABIS PRODUCTS.— 

11 Section 7214(b) of the Internal Revenue Code of 1986 is 

12 amended— 

13 (1) in the heading, by striking ‘‘TOBACCO OR

14 LIQUOR PRODUCTION’’ and inserting ‘‘PRODUCTION

15 OF TOBACCO, LIQUOR, OR CANNABIS PRODUCTS’’, 

16 and 

17 (2) by striking ‘‘or cigarettes’’ and inserting 

18 ‘‘cigarettes, or cannabis products (as defined in sec19 tion 5902(a)(1))’’. 

20 (g) PAPERS, TUBES, AND WRAPPERS.—Section 5702 

21 of the Internal Revenue Code of 1986 is amended— 

22 (1) in subsection (e)— 

23 (A) by inserting ‘‘or a cannabis product’’ 

24 after ‘‘tobacco’’, and 


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1 (B) by inserting ‘‘(including for use as a 

2 cannabis cigarette wrapper)’’ after ‘‘cigarette 

3 wrapper’’, 

4 (2) in subsection (f), by inserting ‘‘(including 

5 for use in making cannabis cigarettes)’’ after ‘‘mak6 ing cigarettes’’, and 

7 (3) in subsection (o), by inserting ‘‘(including 

8 for use in making cannabis cigarettes)’’ after ‘‘wrap9 per thereof’’. 

10 (h) CONFORMING AMENDMENTS.— 

11 (1) Section 6103(o)(1)(A) of the Internal Rev12 enue Code of 1986 is amended by striking ‘‘and fire13 arms’’ and inserting ‘‘firearms, and cannabis prod14 ucts’’. 

15 (2) The heading of subsection (a) of section 

16 7608 of such Code is amended by inserting ‘‘CAN17 NABIS PRODUCTS,’’ after ‘‘TOBACCO,’’. 

18 (3) The table of chapters for subtitle E of such 

19 Code is amended by adding at the end the following 

20 new item: 

‘‘CHAPTER 56. CANNABIS PRODUCTS’’. 

21 (4) The table of sections for subchapter A of 

22 chapter 98 of such Code is amended by adding at 

23 the end the following new item: 

‘‘Sec. 9512. Opportunity Trust Fund.’’. 

24 (i) EFFECTIVE DATE.— 


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1 (1) IN GENERAL.—Except as otherwise pro2 vided in this subsection, the amendments made by 

3 this section shall apply to removals, and applications 

4 under section 5912 of the Internal Revenue Code of 

5 1986 (as added by subsection (a)), after 180 days 

6 after the date of the enactment of this Act. 

7 (2) OTHER AMENDMENTS.—The amendments 

8 made by subsections (b), (c), (d), (f), (g), and (h) 

9 shall take effect on the date of the enactment of this 

10 Act. 

11 TITLE V—PUBLIC HEALTH, CAN12 NABIS ADMINISTRATION, AND 

13 TRADE PRACTICES 

14 Subtitle A—Public Health 

15 SEC. 501. FDA REGULATION OF CANNABIS. 

16 (a) IN GENERAL.—The Federal Food, Drug, and 

17 Cosmetic Act (21 U.S.C. 301 et seq.) is amended by add18 ing at the end the following: 

19 ‘‘CHAPTER XI—CANNABIS PRODUCTS 

20 ‘‘SEC. 1101. CENTER FOR CANNABIS PRODUCTS. 

21 ‘‘Not later than 90 days after the date of enactment 

22 of the ‘Cannabis Administration and Opportunity Act’, the 

23 Secretary shall establish within the Food and Drug Ad24 ministration the Center for Cannabis Products, which 

25 shall report to the Commissioner of Food and Drugs in 


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1 the same manner as the other agency centers within the 

2 Food and Drug Administration. The Center shall be re3 sponsible for the implementation of this chapter and re4 lated matters assigned by the Commissioner. 

5 ‘‘SEC. 1102. ADULTERATED CANNABIS PRODUCTS. 

6 ‘‘(a) IN GENERAL.—A cannabis product shall be 

7 deemed to be adulterated if— 

8 ‘‘(1) it consists in whole or in part of any filthy, 

9 putrid, or decomposed substance, or is otherwise 

10 contaminated by any added poisonous or added dele11 terious substance that may render the product inju12 rious to health; 

13 ‘‘(2) it has been manufactured, prepared, proc14 essed, packed, or held in insanitary conditions 

15 whereby it may have been contaminated with filth, 

16 or whereby it may have been rendered injurious to 

17 health; 

18 ‘‘(3) it bears or contains any poisonous or dele19 terious substance that may render it injurious to 

20 health; 

21 ‘‘(4) its container is composed, in whole or in 

22 part, of any poisonous or deleterious substance that 

23 may render the contents injurious to health; 


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1 ‘‘(5) it bears or contains an unsafe color addi2 tive that is unsafe within the meaning of section 

3 721(a); or 

4 ‘‘(6) the methods used in, or the facilities or 

5 controls used for, its manufacture, preparing, proc6 essing, packing, or storage are not in conformity 

7 with applicable requirements under section 1105(c). 

8 ‘‘(b) EXCEPTIONS TO CERTAIN FOOD REQUIRE9 MENTS FOR FOODS CONTAINING CANNABIS.—Provided 

10 that an article that is a food (as defined in section 201(f)) 

11 and that is also a cannabis product (as defined in section 

12 201(ss)(2)) otherwise complies with all applicable require13 ments for food under chapter IV and all applicable re14 quirements for cannabis products under this chapter, such 

15 article shall not be deemed— 

16 ‘‘(1) adulterated under section 402(a)(2)(C)(i) 

17 solely on account of constituents made or derived 

18 from cannabis; or 

19 ‘‘(2) a food to which has been added a drug for 

20 which substantial clinical investigations have been 

21 instituted and for which the existence of such inves22 tigations has been made public for purposes of sec23 tion 301(ll) solely on account of constituents made 

24 or derived from cannabis. 


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1 ‘‘SEC. 1103. MISBRANDED CANNABIS PRODUCTS. 

2 ‘‘A cannabis product shall be deemed to be mis3 branded— 

4 ‘‘(1) if its labeling or advertising is false or mis5 leading in any particular; 

6 ‘‘(2) unless it bears a label containing— 

7 ‘‘(A) a prominent statement that the prod8 uct contains cannabis; 

9 ‘‘(B) the name and place of business of its 

10 manufacturer, packer, or distributor; 

11 ‘‘(C) an accurate statement of the quantity 

12 of its contents in terms of weight, measure, or 

13 numerical count; 

14 ‘‘(D) a statement of its form as specified 

15 in regulations promulgated pursuant to section 

16 1105(a); 

17 ‘‘(E) the amount of tetrahydrocannabinol 

18 in the product, and if the product is packaged 

19 and labeled in such a way as to suggest more 

20 than one serving, dose, or the equivalent, the 

21 amount of tetrahydrocannabinol in such serv22 ing, dose, or the equivalent; 

23 ‘‘(F) adequate directions for use, if deemed 

24 necessary for the protection of the public health 

25 in regulations promulgated pursuant to section 

26 1105(a); 


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1 ‘‘(G) adequate directions against use by 

2 children, if deemed necessary for the protection 

3 of the public health in regulations promulgated 

4 pursuant to section 1105(a); and 

5 ‘‘(H) such other information as the Sec6 retary determines, in regulations promulgated 

7 pursuant to section 1105(a), to be necessary for 

8 the protection of the public health; 

9 ‘‘(3) if its label or labeling bears a statement 

10 describing the role of a cannabis constituent in11 tended to affect the structure or any function of the 

12 body of humans or other animals, unless— 

13 ‘‘(A) there is substantiation that such 

14 statement is truthful and not misleading; and 

15 ‘‘(B) the statement contains, prominently 

16 displayed and in boldface type, the following: 

17 ‘This statement has not been evaluated by the 

18 Food and Drug Administration. This product is 

19 not intended to diagnose, treat, cure, or prevent 

20 any disease.’; 

21 ‘‘(4) if any word, statement, or other informa22 tion required by or under authority of this Act to 

23 appear on the label or labeling is not prominently 

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1 vices, in the labeling) and in such terms as to render 

2 it likely to be read and understood by the ordinary 

3 individual under customary conditions of purchase 

4 and use; 

5 ‘‘(5) if it purports to be, or is represented as, 

6 a cannabis product which is subject to a cannabis 

7 product standard established under section 1106 un8 less such cannabis product is in all respects in con9 formity with such standard; 

10 ‘‘(6) if its sale, distribution, or label or labeling 

11 is not in conformity with applicable requirements 

12 under subsections (a) and (b) of section 1105; 

13 ‘‘(7) if it was manufactured, prepared, propa14 gated, compounded, or processed in an establishment 

15 not duly registered under section 1104 or if it was 

16 not included in a list required by section 1104; or 

17 ‘‘(8) if it is intended for consumption or appli18 cation by an individual under 21 years of age. 

19 ‘‘SEC. 1104. ANNUAL REGISTRATION. 

20 ‘‘(a) REGISTRATION BY OWNERS AND OPERATORS.— 

21 On or before December 31 of each year, every person who 

22 owns or operates any establishment in any State engaged 

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1 retary the name, places of business, and all such establish2 ments of that person. 

3 ‘‘(b) REGISTRATION BY NEW OWNERS AND OPERA4 TORS.—Every person upon first engaging in the manufac5 ture, preparation, compounding, or processing of a can6 nabis product in any establishment owned or operated in 

7 any State by that person shall immediately register with 

8 the Secretary that person’s name, place of business, and 

9 such establishment. 

10 ‘‘(c) REGISTRATION OF ADDED ESTABLISHMENTS.— 

11 Every person required to register under subsection (a) or 

12 (b) shall immediately register with the Secretary any addi13 tional establishment which that person owns or operates 

14 in the United States and in which that person begins the 

15 manufacture, preparation, compounding, or processing of 

16 a cannabis product. 

17 ‘‘(d) UNIFORM PRODUCT IDENTIFICATION SYS18 TEM.—The Secretary may by regulation prescribe a uni19 form system for the identification of cannabis products 

20 and may require that persons who are required to list such 

21 cannabis products under subsection (g) shall list such can22 nabis products in accordance with such system. 

23 ‘‘(e) PUBLIC ACCESS TO REGISTRATION INFORMA24 TION.—The Secretary shall make available for inspection 

25 any registration filed under this section. 


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1 ‘‘(f) REGISTRATION BY FOREIGN ESTABLISH2 MENTS.—Any establishment within a foreign country en3 gaged in the manufacture, preparation, compounding, or 

4 processing of a cannabis product that is imported or of5 fered for import into the United States, shall register 

6 under this section and shall include with the registration 

7 the name of the United States agent for the establishment. 

8 ‘‘(g) REGISTRATION INFORMATION.— 

9 ‘‘(1) PRODUCT LIST.— 

10 ‘‘(A) IN GENERAL.—Every person who reg11 isters with the Secretary under subsection (a), 

12 (b), or (c) shall, at the time of registration 

13 under such subsection, file with the Secretary— 

14 ‘‘(i) a list of all cannabis products 

15 which are being manufactured, prepared, 

16 compounded, or processed by that person 

17 for commercial distribution and which have 

18 not been included in any list of cannabis 

19 products filed by that person with the Sec20 retary under this paragraph or paragraph 

21 (2) before such time of registration; and 

22 ‘‘(ii) such other information as the 

23 Secretary, in consultation with the Sec24 retary of the Treasury and the Attorney 

25 General, may require, by regulation, to 


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1 carry out the purposes of the Cannabis Ad2 ministration and Opportunity Act, includ3 ing the amendments made by such Act, in4 cluding chapter 56 of subtitle E of the In5 ternal Revenue Code of 1986. 

6 ‘‘(B) FORM AND MANNER OF LIST.—The 

7 list under subparagraph (A)(i) shall be pre8 pared in such form and manner as the Sec9 retary may prescribe and shall be accompanied 

10 by a copy of all consumer information and other 

11 labeling for such cannabis product, a represent12 ative sampling of advertisements for such can13 nabis product, and, upon request by the Sec14 retary, a copy of all advertisements for a par15 ticular cannabis product. 

16 ‘‘(2) REPORT OF ANY CHANGE IN PRODUCT

17 LIST.—Each person who registers with the Secretary 

18 under this section shall report to the Secretary as 

19 follows: 

20 ‘‘(A) Prior to the introduction into com21 mercial distribution of a cannabis product that 

22 has not been included in any list previously filed 

23 by the registrant, a list containing such can24 nabis product. 


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1 ‘‘(B) A notice of discontinuance of the 

2 manufacture, preparation, compounding, or 

3 processing for commercial distribution of a can4 nabis product included in a list filed under sub5 paragraph (A) or paragraph (1), and the date 

6 of such discontinuance. 

7 ‘‘(C) A notice of resumption of the manu8 facture, preparation, compounding, or proc9 essing for commercial distribution of the can10 nabis product with respect to which a notice of 

11 discontinuance was reported under subpara12 graph (B). 

13 ‘‘(D) A list of each cannabis product in14 cluded in a notice filed under subparagraph (C) 

15 prior to the resumption of the introduction into 

16 commercial distribution of such cannabis prod17 uct. 

18 ‘‘(3) PUBLICATION.—The Secretary shall pub19 lish on the website of the Food and Drug Adminis20 tration every registration and list filed pursuant to 

21 this section and the information accompanying every 

22 list not later than 10 days after the applicable date 

23 of filing. 

24 ‘‘(4) DEPARTMENT OF THE TREASURY AC25 CESS.—The Secretary shall establish a format and 


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1 procedure for appropriate Department of the Treas2 ury officials to access the information received by 

3 the Secretary under this subsection, in a prompt and 

4 secure manner. 

5 ‘‘SEC. 1105. GENERAL PROVISIONS FOR CONTROL OF CAN6 NABIS PRODUCTS. 

7 ‘‘(a) RESTRICTIONS ON SALE AND DISTRIBUTION.— 

8 ‘‘(1) REMOTE SALES.—Not later than 2 years 

9 after the date of enactment of the ‘Cannabis Admin10 istration and Opportunity Act’ the Secretary shall 

11 propose, and not later than 3 years after such date 

12 of enactment the Secretary shall finalize, regulations 

13 regarding the promotion, sale, and distribution of 

14 cannabis products that occur through means other 

15 than a direct, face-to-face exchange between a re16 tailer and a consumer, in order to prevent the sale 

17 and distribution of cannabis products to individuals 

18 who have not attained the age of 21, including re19 quirements for age verification. 

20 ‘‘(2) PREVENTING USE OF CANNABIS PRODUCTS

21 IN MINORS.—The Secretary shall, by regulation, im22 pose such restrictions on advertising, promotion, and 

23 marketing of cannabis products as the Secretary de24 termines necessary and appropriate to prevent the 

25 consumption or application of cannabis products by 


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1 individuals under 21 years of age. Such regulations 

2 shall prohibit the advertising, promotion, and mar3 keting of cannabis products, whether directly or in4 directly, to individuals under 21 years of age, and 

5 any other action that has the primary purpose of ini6 tiating or increasing the use of cannabis products in 

7 such individuals. 

8 ‘‘(3) OTHER REGULATIONS.—In addition to the 

9 restrictions under paragraphs (1) and (2), the Sec10 retary may, by regulation, impose other restrictions 

11 on the sale and distribution of cannabis products, in12 cluding restrictions on the access to, and the adver13 tising and promotion of, the cannabis product, if the 

14 Secretary determines that such regulation would be 

15 appropriate for the protection of the public health. 

16 ‘‘(4) GOOD FAITH CONSULTATION WITH INDIAN

17 TRIBES.—In issuing regulations under paragraphs 

18 (1), (2), and (3), the Secretary shall conduct good 

19 faith, meaningful, and timely consultations with In20 dian Tribes (as defined in section 3 of the Cannabis 

21 Administration and Opportunity Act). 

22 ‘‘(b) LABELING STATEMENTS.—The label and label23 ing of a cannabis product shall bear such appropriate 

24 statements of the restrictions required by a regulation 


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1 under subsection (a) as the Secretary may in such regula2 tion prescribe. 

3 ‘‘(c) GOOD MANUFACTURING PRACTICE REQUIRE4 MENTS.—The Secretary shall issue regulations requiring 

5 that the methods used in, and the facilities and controls 

6 used for, the manufacture, preparing, processing, packing, 

7 and holding of a cannabis product conform to current good 

8 manufacturing practice, including testing for pesticide 

9 chemical residues regardless of whether a tolerance for 

10 such chemical residues has been established. 

11 ‘‘SEC. 1106. CANNABIS PRODUCT STANDARDS. 

12 ‘‘(a) IN GENERAL.—The Secretary shall, by regula13 tion, adopt cannabis product standards that are appro14 priate for protection of the public health. 

15 ‘‘(b) CONTENT OF STANDARDS.—A cannabis product 

16 standard established under this section shall include provi17 sions— 

18 ‘‘(1) on the ingredients of the cannabis product, 

19 including, where appropriate— 

20 ‘‘(A) cannabinoid yields of the product, 

21 which may consider or address, as appropriate, 

22 different types of cannabinoids and the inter23 action between the constituents of the product; 

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1 stituents, including smoke constituents, and 

2 properties of the cannabis product, which may 

3 consider, as appropriate, the interaction be4 tween constituents and components of the can5 nabis product; and 

6 ‘‘(C) provisions for the reduction or elimi7 nation of harmful constituents or components 

8 of the product, including smoke constituents; 

9 ‘‘(2) for the testing of the cannabis product; 

10 ‘‘(3) requiring that the results of testing the 

11 cannabis product show that the cannabis product is 

12 in conformity with applicable standards; 

13 ‘‘(4) for the measurement of the characteristics 

14 of the cannabis product, where appropriate; 

15 ‘‘(5) requiring that the sale and distribution of 

16 the cannabis product be restricted but only to the 

17 extent that the sale and distribution of a cannabis 

18 product may be restricted under a regulation under 

19 this Act; 

20 ‘‘(6) where appropriate, requiring the use and 

21 prescribing the form and content of labeling for the 

22 proper use of the cannabis product and any potential 

23 adverse effects of the product; and 

24 ‘‘(7) requiring cannabis products containing 

25 foreign-grown cannabis to meet the same standards 


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1 applicable to cannabis products containing domesti2 cally grown cannabis. 

3 ‘‘(c) PERIODIC REEVALUATION OF STANDARDS.— 

4 The Secretary shall provide for periodic evaluation of can5 nabis product standards established under this section to 

6 determine whether such standards should be changed to 

7 reflect new medical, scientific, or other technological data. 

8 ‘‘SEC. 1107. RECALL AUTHORITY. 

9 ‘‘(a) IN GENERAL.—If the Secretary finds that there 

10 is a reasonable probability that a cannabis product would 

11 cause serious, adverse health consequences or death, the 

12 Secretary shall issue an order requiring the appropriate 

13 person (including the manufacturers, importers, distribu14 tors, or retailers of the cannabis product) to immediately 

15 cease distribution of such cannabis product. The order 

16 shall provide the person subject to the order with an op17 portunity to appear and introduce testimony, to be held 

18 not later than 20 days after the date of the issuance of 

19 the order, on the actions required by the order and on 

20 whether the order should be amended to require a recall 

21 of such cannabis product. If, after providing an oppor22 tunity to appear and introduce testimony, the Secretary 

23 determines that inadequate grounds exist to support the 

24 actions required by the order, the Secretary shall vacate 

25 the order. 


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1 ‘‘(b) AMENDMENT OF ORDER TO REQUIRE RE2 CALL.— 

3 ‘‘(1) IN GENERAL.—If, after providing an op4 portunity to appear and introduce testimony under 

5 subsection (a), the Secretary determines that the 

6 order should be amended to include a recall of the 

7 cannabis product with respect to which the order 

8 was issued, the Secretary shall, except as provided in 

9 paragraph (2), amend the order to require a recall. 

10 The Secretary shall specify a timetable in which the 

11 cannabis product recall will occur and shall require 

12 periodic reports to the Secretary describing the 

13 progress of the recall. 

14 ‘‘(2) NOTICE.—An amended order under para15 graph (1)— 

16 ‘‘(A) shall not include recall of a cannabis 

17 product from individuals; and 

18 ‘‘(B) shall provide for notice to persons 

19 subject to the risks associated with the use of 

20 such cannabis product. 

21 In providing the notice required by subparagraph 

22 (B), the Secretary may use the assistance of retail23 ers and other persons who distributed such cannabis 

24 product. If a significant number of such persons 


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1 cannot be identified, the Secretary shall notify such 

2 persons pursuant to section 705(b). 

3 ‘‘SEC. 1108. RECORDS AND REPORTS ON CANNABIS PROD4 UCTS. 

5 ‘‘(a) IN GENERAL.—Every person who is a cannabis 

6 product manufacturer or importer of a cannabis product 

7 shall establish and maintain such records, make such re8 ports, and provide such information, as the Secretary may 

9 by regulation reasonably require to assure that such can10 nabis product is not adulterated or misbranded and to oth11 erwise protect public health. 

12 ‘‘(b) REPORTS OF REMOVALS AND CORRECTIONS.— 

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), the Secretary shall by regulation require 

15 a cannabis product manufacturer or importer of a 

16 cannabis product to report promptly to the Secretary 

17 any corrective action taken or removal from the 

18 market of a cannabis product undertaken by such 

19 manufacturer or importer if the removal or correc20 tion was undertaken— 

21 ‘‘(A) to reduce a risk to health posed by 

22 the cannabis product; or 

23 ‘‘(B) to remedy a violation of this chapter 

24 caused by the cannabis product which may 

25 present a risk to health. 


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1 A cannabis product manufacturer or importer of a 

2 cannabis product who undertakes a corrective action 

3 or removal from the market of a cannabis product 

4 that is not required to be reported under this sub5 section shall keep a record of such correction or re6 moval. 

7 ‘‘(2) EXCEPTION.—No report of the corrective 

8 action or removal of a cannabis product may be re9 quired under paragraph (1) if a report of the correc10 tive action or removal is required and has been sub11 mitted under subsection (a). 

12 ‘‘SEC. 1109. PROHIBITION ON FLAVORED ELECTRONIC CAN13 NABIS PRODUCT DELIVERY SYSTEM. 

14 ‘‘(a) IN GENERAL.—Any electronic cannabis product 

15 delivery system shall not contain an artificial or natural 

16 flavor (other than cannabis) that is a characterizing fla17 vor, including menthol, mint, mango, strawberry, grape, 

18 orange, clove, cinnamon, pineapple, vanilla, coconut, lico19 rice, cocoa, chocolate, cherry, or coffee. 

20 ‘‘(b) DEFINITION.—For purposes of this section, the 

21 term ‘electronic cannabis product delivery system’ means 

22 an electronic device that delivers a cannabis product via 

23 an aerosolized solution to the user inhaling from the de24 vice, and any component, liquid, part, or accessory of such 

25 a device, whether or not sold separately. 


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1 ‘‘SEC. 1110. PRESERVATION OF STATE, TRIBAL, AND LOCAL 

2 AUTHORITY. 

3 ‘‘(a) IN GENERAL.—Nothing in this chapter, or rules 

4 promulgated under this chapter, shall be construed to 

5 limit the authority of a Federal agency (including the 

6 Armed Forces), a State or political subdivision of a State, 

7 or the government of an Indian Tribe (as defined in sec8 tion 3 of the Cannabis Administration and Opportunity 

9 Act) to enact, adopt, promulgate, and enforce any law, 

10 rule, regulation, or other measure with respect to cannabis 

11 products that is in addition to, or more stringent than, 

12 requirements established under this chapter, including a 

13 law, rule, regulation, or other measure relating to or pro14 hibiting the manufacture, sale, distribution, possession, 

15 exposure to, access to, advertising and promotion of, or 

16 use of cannabis products by individuals of any age, infor17 mation reporting to the State or Indian Tribe (as so de18 fined), or measures relating to fire safety or environmental 

19 standards for cannabis products. No provision of this 

20 chapter shall limit or otherwise affect any State, Tribal, 

21 or local taxation of cannabis products. 

22 ‘‘(b) RULE OF CONSTRUCTION REGARDING PRODUCT

23 LIABILITY.—No provision of this chapter relating to a 

24 cannabis product shall be construed to modify or otherwise 

25 affect any action or the liability of any person under the 


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1 product liability law of any State or Indian Tribe (as so 

2 defined).’’. 

3 SEC. 502. AMENDMENTS TO THE FEDERAL FOOD, DRUG, 

4 AND COSMETIC ACT. 

5 (a) DEFINITIONS.—Section 201 of the Federal Food, 

6 Drug, and Cosmetic Act (21 U.S.C. 321) is amended— 

7 (1) in paragraph (g)(1)(C), by striking ‘‘(other 

8 than food)’’ and inserting ‘‘(other than food or can9 nabis products)’’; 

10 (2) in paragraph (ff)(1), by striking ‘‘(other 

11 than tobacco)’’ and inserting ‘‘(other than a tobacco 

12 product or cannabis product)’’; 

13 (3) in paragraph (rr)(4), by inserting ‘‘cannabis 

14 product,’’ after ‘‘medical device’’; and 

15 (4) by adding at the end the following: 

16 ‘‘(ss)(1)(A) The term ‘cannabis’ means— 

17 ‘‘(i) all parts of the plant Cannabis sativa L., 

18 whether growing or not; 

19 ‘‘(ii) the seeds thereof; 

20 ‘‘(iii) the resin extracted from any part of such 

21 plant; and 

22 ‘‘(iv) every compound, manufacture, salt, deriv23 ative, mixture, or preparation of such plant, its 

24 seeds or resin. 

25 ‘‘(B) The term ‘cannabis’ does not include— 


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1 ‘‘(i) hemp, as defined in section 297A of the 

2 Agricultural Marketing Act of 1946; or 

3 ‘‘(ii) the mature stalks of such plant, fiber pro4 duced from such stalks, oil or cake made from the 

5 seeds of such plant, any other compound, manufac6 ture, salt, derivative, mixture, or preparation of such 

7 mature stalks (except the resin extracted therefrom), 

8 fiber, oil, or cake, or the sterilized seed of such plant 

9 which is incapable of germination. 

10 ‘‘(2)(A) The term ‘cannabis product’ means any 

11 product made or derived from cannabis that is intended 

12 for consumption or applied to the body of man or other 

13 animals, including any component of such product. 

14 ‘‘(B) A ‘cannabis product’ does not mean an article 

15 that is a drug within the meaning of paragraph (g)(1). 

16 ‘‘(3) With respect to cannabis or a cannabis product, 

17 the term ‘manufacture’ includes the planting, cultivation, 

18 growing, and harvesting of cannabis.’’. 

19 (b) PROHIBITED ACTS.—Section 301 of the Federal 

20 Food, Drug, and Cosmetic Act (21 U.S.C. 331) is amend21 ed— 

22 (1) by inserting ‘‘cannabis product,’’ after ‘‘to23 bacco product,’’ each place it appears in paragraphs 

24 (g) and (h); 


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1 (2) in paragraph (j), by striking ‘‘or 920(b)’’ 

2 and inserting ‘‘920(b), or 1104’’; 

3 (3) in paragraph (p)— 

4 (A) by striking ‘‘510 or 905’’ and inserting 

5 ‘‘510, 905, or 1104’’; 

6 (B) by striking ‘‘or 905(j)’’ and inserting 

7 ‘‘905(j), or 1104(g)’’; and 

8 (C) by striking ‘‘or 905(i)(3)’’ and insert9 ing ‘‘, 905(i)(3), or 1104(g)(2)’’; 

10 (4) in paragraph (q)(2) by inserting ‘‘, cannabis 

11 product,’’ after ‘‘device’’; 

12 (5) in paragraph (r), by inserting ‘‘cannabis 

13 product,’’ after ‘‘device,’’ each place it appears; and 

14 (6) by adding at the end the following: 

15 ‘‘(fff)(1) The sale or distribution of a cannabis prod16 uct to any person younger than 21 years of age. 

17 ‘‘(2) The sale or distribution, in any retail single 

18 transaction, of more than 10 ounces of any cannabis prod19 uct. 

20 ‘‘(3) The sale or distribution of an article that is a 

21 cannabis product and that contains alcohol, caffeine, or 

22 nicotine. 

23 ‘‘(4) The failure of a manufacturer or distributor to 

24 notify the Attorney General and the Secretary of the 


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1 Treasury of its knowledge of cannabis products used in 

2 illicit trade. 

3 ‘‘(ggg)(1) The introduction or delivery for introduc4 tion into commerce of any cannabis product that is adul5 terated or misbranded. 

6 ‘‘(2) The adulteration or misbranding of any can7 nabis product in commerce. 

8 ‘‘(3) The receipt in commerce of any cannabis prod9 uct that is adulterated or misbranded, and the delivery 

10 or proffered delivery thereof for pay or otherwise. 

11 ‘‘(4) The alteration, mutilation, destruction, oblitera12 tion, or removal of the whole or any part of the labeling 

13 of, or the doing of any other act with respect to a cannabis 

14 product, if such act is done while such article is held for 

15 sale (whether or not the first sale) after shipment in com16 merce and results in such article being adulterated or mis17 branded. 

18 ‘‘(hhh) The failure to comply with the requirements 

19 of section 524C.’’. 

20 (c) SEIZURE AUTHORITIES.—Section 304 of the Fed21 eral Food, Drug, and Cosmetic Act (21 U.S.C. 334) is 

22 amended— 

23 (1) in subsection (a)— 

24 (A) in paragraph (1), by inserting ‘‘can25 nabis product,’’ after ‘‘drug,’’; and 


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1 (B) in paragraph (2), by inserting ‘‘or can2 nabis product’’ after ‘‘tobacco product’’; 

3 (2) in subsection (d)(1), by inserting ‘‘cannabis 

4 product,’’ after ‘‘tobacco product,’’; and 

5 (3) in subsection (g), by striking ‘‘or tobacco 

6 product’’ each place it appears in paragraphs (1) 

7 and (2)(A) and inserting ‘‘, tobacco product, or can8 nabis product’’. 

9 (d) FACTORY INSPECTION.—Section 704 of the Fed10 eral Food, Drug, and Cosmetic Act (21 U.S.C. 374) is 

11 amended— 

12 (1) in subsection (a)— 

13 (A) by inserting ‘‘cannabis products,’’ after 

14 ‘‘tobacco products,’’ each place it appears; 

15 (B) by striking ‘‘or tobacco products’’ each 

16 place it appears and inserting ‘‘tobacco prod17 ucts, or cannabis products’’; and 

18 (C) by striking ‘‘and tobacco products’’ 

19 and inserting ‘‘tobacco products, and cannabis 

20 products’’; and 

21 (2) in subsection (b)(1), by inserting ‘‘cannabis 

22 product,’’ after ‘‘tobacco product,’’. 

23 (e) PUBLICITY.—Section 705(b) of the Federal Food, 

24 Drug, and Cosmetic Act (21 U.S.C. 375(b)) is amended 


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1 by inserting ‘‘cannabis products,’’ after ‘‘tobacco prod2 ucts,’’. 

3 (f) PRESUMPTION.—Section 709 of the Federal 

4 Food, Drug, and Cosmetic Act (21 U.S.C. 379a) is 

5 amended by inserting ‘‘cannabis product,’’ after ‘‘tobacco 

6 product,’’. 

7 (g) IMPORTS AND EXPORTS.—Section 801 of the 

8 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 381) 

9 is amended— 

10 (1) in subsection (a)— 

11 (A) by inserting ‘‘cannabis products,’’ after 

12 ‘‘tobacco products,’’; 

13 (B) by striking ‘‘or tobacco products’’ each 

14 place it appears and inserting ‘‘, tobacco prod15 ucts, or cannabis products’’; and 

16 (C) by striking ‘‘or section 905(h)’’ and in17 serting ‘‘, 905(h), or 1104’’; and 

18 (2) in subsection (e), by striking ‘‘tobacco prod19 uct or’’ and inserting ‘‘tobacco product, cannabis 

20 product, or’’. 

21 SEC. 503. EXPEDITED REVIEW. 

22 Subchapter A of chapter V of the Federal Food, 

23 Drug, and Cosmetic Act (21 U.S.C. 351 et seq.) is amend24 ed by adding at the end the following: 


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1 ‘‘SEC. 524B. EXPEDITED REVIEW OF CERTAIN DRUGS CON2 TAINING CANNABIS. 

3 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 

4 shall establish a program to expedite the development and 

5 review of applications for drugs containing cannabis that 

6 are manufactured by a small business concerned owned 

7 and controlled by socially and economically disadvantaged 

8 individuals or Native entities that operate in the cannabis 

9 industry. 

10 ‘‘(b) REQUEST FOR DESIGNATION.—A sponsor of a 

11 drug containing cannabis that is manufactured by a small 

12 business concern owned and controlled by socially and eco13 nomically disadvantaged individuals or Native entities that 

14 operate in the cannabis industry may request that the Sec15 retary designate such drug for expedited review under this 

16 section. A request for designation may be made concur17 rently with, or at any time after, the submission of an 

18 application for the investigation of the drug under section 

19 505(i) or section 351(a)(3) of the Public Health Service 

20 Act. 

21 ‘‘(c) ACTIONS.—The actions to expedite the develop22 ment and review of an application designated for expedited 

23 review under this section may include, as appropriate— 

24 ‘‘(1) holding meetings with the sponsor and the 

25 review team throughout the development of the 

26 drug; 


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1 ‘‘(2) providing timely advice to, and interactive 

2 communication with, the sponsor regarding the de3 velopment of the drug to ensure that the develop4 ment program to gather the nonclinical and clinical 

5 data necessary for approval is as efficient as prac6 ticable; and 

7 ‘‘(3) priority review, as described in the Manual 

8 of Policies and Procedures of the Food and Drug 

9 Administration and goals identified in the letters de10 scribed in section 101(b) of the Prescription Drug 

11 User Fee Amendments of 2017. 

12 ‘‘(d) EXPEDITED REVIEW GUIDANCE.—Not later 

13 than 1 year after the date of enactment of the Cannabis 

14 Administration and Opportunity Act, and after good faith, 

15 meaningful, and timely consultation with Native entities, 

16 the Secretary shall issue guidance on the implementation 

17 of this section. Such guidance shall— 

18 ‘‘(1) set forth the process by which a person 

19 may seek a designation under subsection (b); and 

20 ‘‘(2) identify the criteria the Secretary will use 

21 in evaluating a request for designation under this 

22 section. 

23 ‘‘(e) DEFINITIONS.—In this section: 


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1 ‘‘(1) DRUG CONTAINING CANNABIS.—The term 

2 ‘drug containing cannabis’ means any drug that con3 tains any article made or derived from cannabis. 

4 ‘‘(2) NATIVE ENTITY.—The term ‘Native entity’ 

5 means— 

6 ‘‘(A) an Indian Tribe (as defined in section 

7 3 of the Cannabis Administration and Oppor8 tunity Act); 

9 ‘‘(B) a Native Corporation (as defined in 

10 section 3 of the Alaska Native Claims Settle11 ment Act (43 U.S.C. 1602)); and 

12 ‘‘(C) a Native Hawaiian-serving entity. 

13 ‘‘(3) NATIVE HAWAIIAN-SERVING ENTITY.—The 

14 term ‘Native Hawaiian-serving entity’ means— 

15 ‘‘(A) a Native Hawaiian organization (as 

16 defined in section 6207 of the Elementary and 

17 Secondary Education Act of 1965 (20 U.S.C. 

18 7517)); 

19 ‘‘(B) the Department of Hawaiian Home 

20 Lands; and 

21 ‘‘(C) the Office of Hawaiian Affairs. 

22 ‘‘(4) SMALL BUSINESS CONCERN OWNED AND

23 CONTROLLED BY SOCIALLY AND ECONOMICALLY DIS24 ADVANTAGED INDIVIDUALS.—The term ‘small busi25 ness concern owned and controlled by socially and 


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1 economically disadvantaged individuals’ has the 

2 meaning given the term in section 8(d)(3)(C) of the 

3 Small Business Act. 

4 ‘‘SEC. 524C. SECURITY REQUIREMENTS FOR DRUGS CON5 TAINING CANNABIS. 

6 ‘‘(a) IN GENERAL.—The sponsor of any application 

7 under section 505 for a drug containing cannabis shall 

8 provide effective controls and procedures to guard against 

9 theft and diversion of such drug, which may include, if 

10 the Secretary determines necessary, a risk evaluation and 

11 mitigation strategy under section 505–1. 

12 ‘‘(b) STANDARDS.—The Secretary shall prescribe, by 

13 regulation, standards for controls and procedures for 

14 drugs described in subsection (a). 

15 ‘‘(c) DEFINITION.—For purposes of this section, the 

16 term ‘drug containing cannabis’ means any drug that con17 tains any article made or derived from cannabis.’’. 

18 SEC. 504. REGULATION OF CANNABIDIOL. 

19 (a) CBD AS A DIETARY SUPPLEMENT.—Section 

20 201(ff)(3)(B) of the Federal Food, Drug, and Cosmetic 

21 Act (21 U.S.C. 321(ff)(3)(B)) is amended, in the matter 

22 preceding subclause (i), by inserting ‘‘, except in the case 

23 of cannabidiol derived from hemp (as defined in section 

24 297A of the Agricultural Marketing Act of 1946)’’ after 

25 ‘‘include’’. 


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1 (b) ADULTERATION.—Section 402 of the Federal 

2 Food, Drug, and Cosmetic Act (21 U.S.C. 342) is amend3 ed by adding at the end the following new subsection: 

4 ‘‘(j)(1) If it is a dietary supplement that contains 

5 cannabidiol, unless— 

6 ‘‘(A) such dietary supplement contains no more 

7 than an amount of cannabidiol per recommended 

8 daily serving that the Secretary may establish (and 

9 revise or repeal as appropriate), subject to para10 graph (2), through an interim final rule, notwith11 standing any requirement for notice and comment 

12 that may otherwise apply under section 553 of title 

13 5, United States Code; 

14 ‘‘(B) such dietary supplement is the subject of 

15 a notification submitted to the Secretary in accord16 ance with section 413(a)(2); and 

17 ‘‘(C) the labeling and packaging of such dietary 

18 supplement conforms with any requirements that the 

19 Secretary establishes regarding labeling or pack20 aging of dietary supplements containing cannabidiol 

21 (which may be promulgated (and revised or repealed 

22 as appropriate) by the Secretary through an interim 

23 final rule, notwithstanding any requirement for no24 tice and comment that may otherwise apply under 

25 section 553 of title 5, United States Code). 


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1 ‘‘(2)(A) The amount of cannabidiol established in ac2 cordance with paragraph (1)(A)— 

3 ‘‘(i) shall be a threshold above which the Sec4 retary may not accept new dietary ingredient notifi5 cations; and 

6 ‘‘(ii) shall not be interpreted as a determination 

7 that lower amounts of cannabidiol are safe. 

8 ‘‘(B) The Secretary shall establish such a threshold 

9 based on such factors as the Secretary determines to be 

10 appropriate, which may include a consideration of whether 

11 the review of new dietary ingredient notifications for prod12 ucts containing higher levels of cannabidiol may be unduly 

13 burdensome.’’. 

14 (c) NEW DIETARY INGREDIENT.—Section 413(a)(1) 

15 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

16 350b(a)(1)) is amended by inserting ‘‘contains no 

17 cannabidiol and’’ before ‘‘contains only dietary ingredi18 ents’’. 

19 (d) NEW PROHIBITED ACT.—Section 301 of the Fed20 eral Food, Drug, and Cosmetic Act (21 U.S.C. 331), as 

21 amended by section 502(b)(6), is further amended by add22 ing at the end the following: 

23 ‘‘(iii) The introduction or delivery for introduction 

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1 tary supplement that fails to meet the definition of a die2 tary supplement under section 201(ff).’’. 

3 (e) NEW IMPORT EXCLUSION.—Section 801(a) of the 

4 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 381(a)) 

5 is amended in paragraph (3) of the third sentence by strik6 ing ‘‘section 301(ll)’’ and inserting ‘‘paragraph (ll) or (iii) 

7 of section 301’’. 

8 (f) NEW SEIZURE AUTHORITIES.—Section 304 of the 

9 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 334) 

10 is amended— 

11 (1) in subsection (a)(1), in the first sentence, 

12 by inserting ‘‘or any article which may not be intro13 duced or delivered for introduction into interstate 

14 commerce under section 301(iii),’’ before ‘‘shall be 

15 liable’’; and 

16 (2) in subsection (d)(1), in the first sentence, 

17 by inserting ‘‘, or any product otherwise introduced 

18 or delivered for introduction into interstate com19 merce in violation of section 301(iii) and condemned 

20 under this section,’’ after ‘‘under this section’’. 

21 (g) CBD AS A FOOD ADDITIVE.— 

22 (1) IN GENERAL.—Not later than 1 year after 

23 the date of enactment of this Act, the Secretary of 

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1 ance describing criteria by which the Secretary in2 tends to evaluate the safety of cannabidiol as a food 

3 additive in any food additive petition under section 

4 409 of the Federal Food, Drug, and Cosmetic Act 

5 (21 U.S.C. 348). The Secretary shall publish final 

6 guidance within 180 days of the close of the public 

7 comment period on such draft guidance. 

8 (2) ADVISORY COMMITTEE.—Before issuing 

9 draft guidance under paragraph (1), the Secretary 

10 shall convene and consult an advisory committee, 

11 which shall include experts qualified in the subject 

12 matter. 

13 SEC. 505. TRANSITION PERIODS. 

14 (a) TRANSITION PERIOD FOR CANNABIS PROD15 UCTS.—With respect to a cannabis product that was mar16 keted in the United States within 30 days of the date of 

17 enactment of this Act pursuant to a State law permitting 

18 the marketing of such product, such product shall not be 

19 considered to be in violation of chapter XI of the Federal 

20 Food, Drug, and Cosmetic Act (as added by section 501) 

21 or section 301 of the Federal Food, Drug, and Cosmetic 

22 Act (21 U.S.C. 331), as amended by this title, as applica23 ble, during the 18-month period following the date of en24 actment of this Act. 


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1 (b) SUBMISSION OF APPLICATIONS FOR PREVIOUSLY

2 MARKETED DRUGS CONTAINING CANNABIS.— 

3 (1) TRANSITION PERIOD FOR DRUGS CON4 TAINING CANNABIS.—With respect to a drug con5 taining cannabis that was being marketed in the 

6 United States within 30 days after the date of en7 actment of this Act pursuant to a State law permit8 ting cannabis for medical use, such drug shall not be 

9 considered to be in violation of chapter V or section 

10 301 of the Federal Food, Drug, and Cosmetic Act 

11 (21 U.S.C. 331; 351 et seq.) during the 3-year pe12 riod following the date of enactment of this Act. 

13 (2) SUBMISSION OF APPLICATIONS.— 

14 (A) IN GENERAL.—As a condition for con15 tinuing to market a drug described in para16 graph (1) during the 3-year period specified in 

17 such paragraph, during the 18-month period 

18 beginning on the effective date of this Act, the 

19 manufacturer shall submit a new drug applica20 tion under section 505(b) of the Federal Food, 

21 Drug, and Cosmetic Act (21 U.S. C. 355(b)) 

22 for such drug. 

23 (B) TRANSITION PERIOD.—Except as pro24 vided in subparagraph (C), with respect to a 

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1 tion is submitted as described in subparagraph 

2 (A), the manufacturer of such product may con3 tinue to market such drug in the State de4 scribed in paragraph (1) during the 3-year pe5 riod beginning on the effective date of this Act. 

6 (C) EXCEPTION.—If the Secretary of 

7 Health and Human Services issues an order re8 fusing to approve an application under section 

9 505(d) of the Federal Food, Drug, and Cos10 metic Act (21 U.S.C. 355(d)) for a drug that 

11 contains cannabis, such drug shall not be eligi12 ble for continued marketing under subpara13 graph (B). 

14 (3) END OF TRANSITION PERIOD.—Beginning 

15 on the date that is 3 years after the date of enact16 ment of this Act the Secretary may take enforce17 ment action, as appropriate, for a drug described in 

18 paragraph (1) (including such a drug that is the 

19 subject of a pending application under section 505 

20 of the Federal Food, Drug, and Cosmetic Act (21 

21 U.S.C. 355)) found to be in violation of chapter V 

22 or section 301 of the Federal Food, Drug, and Cos23 metic Act. 

24 (4) RULE OF CONSTRUCTION.—Nothing in this 

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1 keting of a cannabis product otherwise in compliance 

2 with relevant provisions of the Federal Food, Drug, 

3 and Cosmetic Act (21 U.S.C. 301 et seq.). 

4 (c) DEFINITION.—For purposes of this section, the 

5 term ‘‘drug containing cannabis’’ means any drug that 

6 contains any article made or derived from cannabis. 

7 SEC. 506. AMENDMENT TO THE POISON PREVENTION PACK8 AGING ACT. 

9 Section 2(2)(B) of the Poison Prevention Packaging 

10 Act of 1970 (15 U.S.C. 1471(2)(B)) is amended by strik11 ing ‘‘or cosmetic’’ and inserting ‘‘cosmetic, or cannabis 

12 product,’’. 

13 SEC. 507. FUNDING FOR FDA. 

14 In addition to amounts otherwise available, there is 

15 appropriated, out of any funds in the Treasury not other16 wise appropriated, $425,000,000 for each of fiscal years 

17 2023 through 2027 to carry out this title and the amend18 ments made by this title. 

19 Subtitle B—Federal Cannabis 

20 Administration 

21 SEC. 511. FEDERAL CANNABIS ADMINISTRATION. 

22 (a) IN GENERAL.—The Federal Alcohol Administra23 tion Act (27 U.S.C. 201 et seq.) is amended by adding 

24 at the end the following: 


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1 ‘‘TITLE III—CANNABIS 

2 ‘‘SEC. 301. UNLAWFUL BUSINESSES WITHOUT CANNABIS 

3 PERMIT. 

4 ‘‘(a) IMPORT.—It shall be unlawful, except pursuant 

5 to a permit issued under this title by the Secretary— 

6 ‘‘(1) to engage in the business of importing 

7 cannabis into the United States; or 

8 ‘‘(2) for any person so engaged to sell, offer or 

9 deliver for sale, contract to sell, or ship, in interstate 

10 or foreign commerce, directly or indirectly or 

11 through an affiliate, cannabis so imported. 

12 ‘‘(b) MANUFACTURE AND SALE.—It shall be unlaw13 ful, except pursuant to a permit issued under this title 

14 by the Secretary— 

15 ‘‘(1) to engage in the business of cultivating, 

16 producing, manufacturing, packaging, or 

17 warehousing cannabis; or 

18 ‘‘(2) for any person so engaged to sell, offer or 

19 deliver for sale, contract to sell, or ship, in interstate 

20 or foreign commerce, directly or indirectly or 

21 through an affiliate, cannabis so cultivated, pro22 duced, manufactured, packaged, or warehoused. 

23 ‘‘(c) RESALE.—It shall be unlawful, except pursuant 

24 to a permit issued under this title by the Secretary— 


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1 ‘‘(1) to engage in the business of purchasing 

2 cannabis for resale at wholesale; or 

3 ‘‘(2) for any person so engaged to receive or to 

4 sell, offer or deliver for sale, contract to sell, or ship, 

5 in interstate or foreign commerce, directly or indi6 rectly or through an affiliate, cannabis so purchased. 

7 ‘‘(d) TRANSITION RULE.—Subject to section 302(e), 

8 in the case of a person who has filed a complete and accu9 rate application for a permit under this section within 90 

10 days of the date on which the Secretary has issued any 

11 necessary guidance and forms with respect to such appli12 cations, this section shall not apply to such person during 

13 the period prior to any determination under section 302 

14 as to the entitlement of such person to such permit, pro15 vided that such person is in compliance with— 

16 ‘‘(1) any applicable regulations under this title; 

17 and 

18 ‘‘(2) payment of any taxes imposed under chap19 ter 56 of the Internal Revenue Code of 1986. 

20 ‘‘SEC. 302. PROCEDURE FOR ISSUANCE OF CANNABIS PER21 MITS. 

22 ‘‘(a) ENTITLEMENT TO PERMIT.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall issue a 

24 permit for operations requiring a permit under sec25 tion 301 unless the Secretary finds that— 


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1 ‘‘(A) the applicant (or if the applicant is a 

2 corporation, any of its officers, directors, or 

3 principal stockholders) has been convicted of a 

4 disqualifying offense; 

5 ‘‘(B) the operations proposed to be con6 ducted by the applicant are in violation of the 

7 law of the State in which they are to be con8 ducted; or 

9 ‘‘(C) the applicant is not likely to maintain 

10 such operations in conformity with Federal law. 

11 ‘‘(2) DISQUALIFYING OFFENSES.— 

12 ‘‘(A) IN GENERAL.—For the purposes of 

13 paragraph (1), a disqualifying offense is any 

14 felony violation of any provision of Federal or 

15 State criminal law relating to cannabis or can16 nabis products (including the taxation thereof), 

17 if the conviction occurred after the date of en18 actment of the Cannabis Administration and 

19 Opportunity Act and not later than 3 years be20 fore the date of the application. 

21 ‘‘(B) WAIVER PURSUANT TO FINDING OF

22 MITIGATION OR REHABILITATION AND FITNESS

23 FOR OCCUPATION.—Notwithstanding subpara24 graph (A), an offense shall not be considered a 

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1 sion of waiver request by the applicant to the 

2 Secretary, the Secretary finds (following a re3 view and recommendation with respect to such 

4 waiver request by the Cannabis Products Advi5 sory Committee established under section 602 

6 of the Cannabis Administration and Oppor7 tunity Act) that the applicant has established 

8 sufficient mitigation or rehabilitation and fit9 ness to maintain cannabis operations in compli10 ance with State and Federal law by providing— 

11 ‘‘(i) evidence showing that— 

12 ‘‘(I) the applicant has not been 

13 convicted of a crime that occurred 

14 after the date on which the offense 

15 with respect to which the waiver was 

16 requested occurred; and 

17 ‘‘(II) the applicant has complied 

18 with all terms and conditions of pro19 bation or parole; or 

20 ‘‘(ii) any other evidence of mitigation 

21 and present fitness, including— 

22 ‘‘(I) the circumstances relating to 

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1 rounding the commission of the of2 fense; 

3 ‘‘(II) the age of the applicant 

4 when the applicant committed the of5 fense; 

6 ‘‘(III) the period of time that has 

7 elapsed since the applicant committed 

8 the offense; 

9 ‘‘(IV) additional evidence of edu10 cational, training, or work activities 

11 that the applicant has participated in, 

12 including during any period of incar13 ceration; 

14 ‘‘(V) letters of reference by per15 sons who have been in contact with 

16 the applicant since the applicant was 

17 released from any correctional institu18 tion; and 

19 ‘‘(VI) completion of, or active 

20 participation in, rehabilitative drug or 

21 alcohol treatment. 

22 ‘‘(b) REFUSAL OF PERMIT; HEARING.—If upon ex23 amination of any application for a permit the Secretary 

24 has reason to believe that the applicant is not entitled to 

25 such permit, the Secretary shall so notify the applicant 


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1 and, upon request by the applicant, afford the applicant 

2 due notice and opportunity for hearing on the application. 

3 If the Secretary, after affording such notice and oppor4 tunity for hearing, still finds that the applicant is not enti5 tled to a permit hereunder, the Secretary shall by order 

6 deny the application stating the findings which are the 

7 basis for the order. 

8 ‘‘(c) FORM OF APPLICATION.— 

9 ‘‘(1) GENERALLY.—The Secretary shall— 

10 ‘‘(A) prescribe the manner and form of ap11 plications for permits under this title (including 

12 the facts to be set forth in the application); 

13 ‘‘(B) prescribe the form of such permits; 

14 and 

15 ‘‘(C) specify in any permit the authority 

16 conferred by the permit and the conditions of 

17 that permit in accordance with this title. 

18 ‘‘(2) SEPARATE TYPES OF APPLICATIONS AND

19 PERMITS.—To the extent deemed necessary by the 

20 Secretary for the efficient administration of this 

21 title, the Secretary may require separate applications 

22 and permits with respect to the various classes of 

23 cannabis, and with respect to the various classes of 

24 persons entitled to permits under this title. 


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1 ‘‘(3) DISCLAIMER.—The issuance of a permit 

2 under this title does not deprive the United States 

3 of any remedy for a violation of law. 

4 ‘‘(d) CONDITIONS.— 

5 ‘‘(1) IN GENERAL.—A permit under this title 

6 shall be conditioned upon— 

7 ‘‘(A) compliance with all other Federal 

8 laws relating to production and sale of can9 nabis, as well as compliance with all State laws 

10 relating to said activities in the State in which 

11 the permit applicant resides and does business; 

12 ‘‘(B) payment to the Secretary of a reason13 able permit fee in an amount determined by the 

14 Secretary to be sufficient over time to offset the 

15 cost of implementing and overseeing all aspects 

16 of cannabis regulation by the Federal Govern17 ment; and 

18 ‘‘(C) compliance with— 

19 ‘‘(i) the labor laws described in para20 graph (1) of subsection (j), as determined 

21 in accordance with paragraph (2) of such 

22 subsection; and 

23 ‘‘(ii) the reporting requirements of 

24 subsection (j)(3). 


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1 ‘‘(2) WAIVER OF PERMIT FEE.—Pursuant to 

2 regulations prescribed by the Secretary, the permit 

3 fee described in paragraph (1)(B) shall be waived in 

4 the case of an individual who— 

5 ‘‘(A) has had an income below 250 percent 

6 of the Federal Poverty Level for not fewer than 

7 5 of the 10 years preceding the date on which 

8 the individual submits an application for a per9 mit under this title; and 

10 ‘‘(B) is a first-time applicant. 

11 ‘‘(e) REVOCATION, SUSPENSION, AND ANNUL12 MENT.— 

13 ‘‘(1) GENERALLY.—After due notice and oppor14 tunity for hearing, the Secretary may order a permit 

15 under this title— 

16 ‘‘(A) revoked or suspended for such period 

17 as the Secretary deems appropriate, if the Sec18 retary finds that the permittee has willfully vio19 lated any of the conditions of the permit, but 

20 for a first violation of the conditions the permit 

21 shall be subject to suspension only; 

22 ‘‘(B) revoked if the Secretary finds that 

23 the permittee has not engaged in the operations 

24 authorized by the permit for a period of more 

25 than 2 years; or 


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1 ‘‘(C) annulled if the Secretary finds that 

2 the permit was procured through fraud, or mis3 representation, or concealment of material fact. 

4 ‘‘(2) ORDER TO STATE BASIS FOR ORDER.— 

5 The order shall state the findings which are the 

6 basis for the order. 

7 ‘‘(3) JOINT DEVELOPMENT OF ENFORCEMENT

8 REGULATIONS.—The Secretary, in coordination with 

9 the Secretary of Labor and the National Labor Re10 lations Board, shall, through regulations, establish 

11 criteria for making determinations under paragraph 

12 (1). 

13 ‘‘(4) JOINT ENFORCEMENT.—The Secretary of 

14 Labor and the National Labor Relations Board shall 

15 provide to the Secretary any assistance in carrying 

16 out this subsection as determined necessary by the 

17 Secretary. 

18 ‘‘(5) CERTAIN VIOLATIONS UNDER THE NA19 TIONAL LABOR RELATIONS ACT DEEMED WILL20 FUL.—A violation of the condition under subsection 

21 (d)(1)(C) with respect to compliance with section 8 

22 of the National Labor Relations Act (29 U.S.C. 

23 158) as described in subsection (j)(1)(C) shall be 

24 deemed willful for purposes of paragraph (1)(A) if 


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•S 4591 IS

1 the National Labor Relations Board finds that the 

2 permittee has engaged in— 

3 ‘‘(A) a discharge in violation of subsection 

4 (a) of such section 8; 

5 ‘‘(B) a violation of such section 8 during 

6 the period in which a representation election 

7 under such Act is pending with respect to the 

8 employees of the permittee; or 

9 ‘‘(C) a withdrawal of recognition of the 

10 recognized or certified collective-bargaining rep11 resentative under such Act with respect to the 

12 employees of the permittee that is in violation 

13 of such section 8. 

14 ‘‘(f) SERVICE OF ORDERS.—Each order of the Sec15 retary with respect to any denial of application, suspen16 sion, revocation, annulment, or other proceedings, shall be 

17 served— 

18 ‘‘(1) in person by any officer or employee of the 

19 Secretary designated by him or any internal revenue 

20 or customs officer authorized by the Secretary for 

21 the purpose; or 

22 ‘‘(2) by mailing the order by registered mail, 

23 addressed to the applicant or respondent at his last 

24 known address in the records of the Secretary. 

25 ‘‘(g) DURATION.— 


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1 ‘‘(1) GENERAL RULE.—Except as otherwise 

2 provided in this subsection, a permit issued under 

3 this title shall continue in effect until suspended, re4 voked, or annulled as provided in this title, or volun5 tarily surrendered. 

6 ‘‘(2) EFFECT OF TRANSFER.—If operations 

7 under a permit issued under this title are trans8 ferred, the permit automatically terminates 30 days 

9 after the date of that transfer, unless an application 

10 is made by the transferee before the end of that pe11 riod for a permit under this title for those oper12 ations. If such an application is made, the out13 standing permit shall continue in effect until such 

14 application is finally acted on by the Secretary. 

15 ‘‘(3) DEFINITION OF TRANSFER.—For the pur16 poses of this section, the term ‘transfer’ means any 

17 change of ownership or control, whether voluntary or 

18 by operation of law. 

19 ‘‘(h) JUDICIAL REVIEW.— 

20 ‘‘(1) IN GENERAL.—A permittee or applicant 

21 for a permit under this title may obtain judicial re22 view under chapter 7 of title 5, United States Code, 

23 of the denial of the application of that applicant or, 

24 in the case of a permittee, the denial of an applica25 tion by the transferee of that permittee or the susVerDate Sep 11 2014 04:54 Jul 26, 2022 Jkt 029200 PO 00000 Frm 00220 Fmt 6652 Sfmt 6201 E:\BILLS\S4591.IS S4591

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1 pension, revocation, or annulment of a permit with 

2 respect to that permittee. 

3 ‘‘(2) LABOR LAW VIOLATIONS.—Notwith4 standing paragraph (1), with respect to a violation 

5 of the condition described in subsection (d)(1)(C), 

6 the findings of fact and conclusions of law by the 

7 Secretary, or, pursuant to subsection (e)(4), the Sec8 retary of Labor or the National Labor Relations 

9 Board, concerning the appropriateness of sus10 pending, revoking, or annulling a permit as provided 

11 in this title, if supported by substantial evidence on 

12 the whole, shall be conclusive. 

13 ‘‘(i) STATUTE OF LIMITATIONS.— 

14 ‘‘(1) IN GENERAL.—No proceeding for the sus15 pension or revocation of a permit for violation of any 

16 condition thereof relating to compliance with Federal 

17 law shall be instituted by the Secretary more than 

18 18 months after conviction of the violation of Fed19 eral law, or, if no conviction has been had, more 

20 than 3 years after the violation occurred. 

21 ‘‘(2) COMPROMISE.—No permit shall be sus22 pended or revoked for a violation of any such condi23 tion thereof if the alleged violation of Federal law 

24 has been compromised by any officer of the Govern25 ment authorized to compromise such violation. 


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1 ‘‘(j) LABOR LAWS.— 

2 ‘‘(1) IN GENERAL.—A labor law described in 

3 this paragraph is any of the following: 

4 ‘‘(A) Any provision under the Fair Labor 

5 Standards Act of 1938 (29 U.S.C. 201 et seq.), 

6 including any regulations promulgated under 

7 such Act. 

8 ‘‘(B) Any provision under the Occupational 

9 Safety and Health Act of 1970 (29 U.S.C. 651 

10 et seq.), including any standard promulgated 

11 under section 6 of such Act (29 U.S.C. 655) or 

12 any other regulation promulgated under such 

13 Act, or any standard or regulation promulgated 

14 under an applicable State plan approved by the 

15 Secretary of Labor under section 18 of such 

16 Act (29 U.S.C. 667) that is identical or equiva17 lent to a standard promulgated under such sec18 tion 6. 

19 ‘‘(C) Section 8 of the National Labor Rela20 tions Act (29 U.S.C. 158), including any regu21 lations promulgated under such section. 

22 ‘‘(2) FINDINGS OF LABOR LAW VIOLATIONS.— 

23 ‘‘(A) IN GENERAL.—For purposes of sub24 section (d)(1)(C)(i), a permittee shall be consid25 ered in violation of a labor law described in 


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•S 4591 IS

1 paragraph (1) if any of the following findings 

2 are made with respect to the permittee: 

3 ‘‘(i) FAIR LABOR STANDARDS ACT OF

4 1938.—With respect to a labor law de5 scribed in paragraph (1)(A)— 

6 ‘‘(I) a finding through an order 

7 or judgment of a Federal or State 

8 court that the permittee has violated 

9 any provision of the Fair Labor 

10 Standards Act of 1938, including any 

11 regulation promulgated under such 

12 Act; or 

13 ‘‘(II) a finding through a final 

14 order of the Secretary of Labor that 

15 the permittee has violated any provi16 sion of such Act, including such a reg17 ulation. 

18 ‘‘(ii) OCCUPATIONAL SAFETY AND

19 HEALTH ACT OF 1970.—With respect to a 

20 labor law described in paragraph (1)(B)— 

21 ‘‘(I) a finding through an order 

22 or judgment of a Federal or State 

23 court that the permittee has violated 

24 any provision of the Occupational 

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1 cluding any standard promulgated 

2 under section 6 of such Act or any 

3 other regulation promulgated under 

4 such Act, or any standard or regula5 tion promulgated under an applicable 

6 State plan approved by the Secretary 

7 of Labor under section 18 of such Act 

8 (29 U.S.C. 667) that is identical or 

9 equivalent to a standard promulgated 

10 under such section 6; or 

11 ‘‘(II) a finding through a final 

12 order issued by the Occupational 

13 Safety and Health Review Commis14 sion, or an equivalent final decision of 

15 any State agency or administrative 

16 body, that the permittee has com17 mitted a violation described in sub18 clause (I). 

19 ‘‘(iii) NATIONAL LABOR RELATIONS

20 ACT.—With respect to a labor law de21 scribed in paragraph (1)(C), a finding by 

22 the National Labor Relations Board that 

23 the permittee has violated section 8 of the 

24 National Labor Relations Act (29 U.S.C. 

25 158), including a regulation promulgated 


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1 under such section, by committing an un2 fair labor practice under such section. 

3 ‘‘(B) EXCEPTION.—Notwithstanding sub4 paragraph (A), a permittee shall not be consid5 ered in violation of a labor law described in 

6 paragraph (1) if a finding described in subpara7 graph (A) with respect to the permittee is 

8 through an order or judgment that has been re9 versed, vacated, or rescinded. 

10 ‘‘(3) REPORTING REQUIREMENTS.—Not later 

11 than 30 days after a finding described in paragraph 

12 (2) has been made with respect to a permittee, the 

13 permittee shall notify the Secretary of such finding 

14 in such form and manner as the Secretary, in co15 ordination with the Secretary of Labor and the Na16 tional Labor Relations Board, shall prescribe. 

17 ‘‘SEC. 303. DELIVERY OF HEMP INADVERTENTLY EXCEED18 ING PERMISSIBLE CONCENTRATION OF 

19 DELTA-9 TETRAHYRDROCANNABINOL. 

20 ‘‘(a) IN GENERAL.—The Secretary, in coordination 

21 with the Secretary of Agriculture and the Secretary of 

22 Health and Human Services, shall issue regulations to es23 tablish a process for the lawful delivery of hemp described 

24 in subsection (b) to a cannabis enterprise holding a permit 


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•S 4591 IS

1 issued under this title and authorized pursuant to section 

2 5911 of the Internal Revenue Code of 1986. 

3 ‘‘(b) HEMP DESCRIBED.—Hemp referred to in sub4 section (a) is Cannabis sativa L. inadvertently produced 

5 with a total tetrahydrocannabinol equivalent concentration 

6 of more than the allowable tetrahydrocannabinol equiva7 lent amount as described in paragraph (1)(C) of section 

8 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 

9 1639o)— 

10 ‘‘(1) before September 30, 2021, by an institu11 tion of higher education or State department of agri12 culture that grows or cultivates industrial hemp 

13 under section 7606 of the Agricultural Act of 2014 

14 (7 U.S.C. 5940); or 

15 ‘‘(2) by a producer of hemp under subtitle G of 

16 the Agricultural Marketing Act of 1946 (7 U.S.C. 

17 1639o et seq.). 

18 ‘‘SEC. 304. UNFAIR COMPETITION AND UNLAWFUL PRAC19 TICES. 

20 ‘‘(a) IN GENERAL.—It shall be unlawful for any per21 son engaged in the business of importing cannabis into 

22 the United States, or cultivating, producing, manufac23 turing, packaging, or warehousing cannabis, or purchasing 

24 cannabis for resale at wholesale, directly or indirectly or 

25 through an affiliate, to do any of the following: 


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1 ‘‘(1) EXCLUSIVE OUTLET.—To require, by 

2 agreement or otherwise, that any retailer engaged in 

3 the sale of cannabis products, purchase any such 

4 products from such person to the exclusion in whole 

5 or in part of cannabis sold or offered for sale by 

6 other persons in interstate or foreign commerce, if 

7 such requirement is made in the course of interstate 

8 or foreign commerce, or if such person engages in 

9 such practice to such an extent as substantially to 

10 restrain or prevent transactions in interstate or for11 eign commerce in any such products, or if the direct 

12 effect of such requirement is to prevent, deter, 

13 hinder, or restrict other persons from selling or of14 fering for sale any such products to such retailer in 

15 interstate or foreign commerce. 

16 ‘‘(2) TIED HOUSE.—To induce through any of 

17 the following means, any retailer, engaged in the 

18 sale of cannabis products to purchase any such prod19 ucts from such person to the exclusion in whole or 

20 in part of cannabis sold or offered for sale by other 

21 persons in interstate or foreign commerce, if such 

22 inducement is made in the course of interstate or 

23 foreign commerce, or if such person engages in the 

24 practice of using such means, or any of them, to 

25 such an extent as substantially to restrain or prevent 


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1 transactions in interstate or foreign commerce in 

2 any such products, or if the direct effect of such in3 ducement is to prevent, deter, hinder, or restrict 

4 other persons from selling or offering for sale any 

5 such products to such retailer in interstate or for6 eign commerce: 

7 ‘‘(A) Acquiring or holding (after the expi8 ration of any existing license) any interest in 

9 any license with respect to the premises of the 

10 retailer. 

11 ‘‘(B) Acquiring any interest in real or per12 sonal property owned, occupied, or used by the 

13 retailer in the conduct of his business. 

14 ‘‘(C) Furnishing, giving, renting, lending, 

15 or selling to the retailer, any equipment, fix16 tures, signs, supplies, money, services, or other 

17 thing of value, subject to such exceptions as the 

18 Secretary shall by regulation prescribe, having 

19 due regard for public health, the quantity and 

20 value of articles involved, established trade cus21 toms not contrary to the public interest and the 

22 purposes of this subsection. 

23 ‘‘(D) Paying or crediting the retailer for 

24 any advertising, display, or distribution service. 


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1 ‘‘(E) Guaranteeing any loan or the repay2 ment of any financial obligation of the retailer. 

3 ‘‘(F) Extending to the retailer credit for a 

4 period in excess of the credit period usual and 

5 customary to the industry for the particular 

6 class of transactions, as ascertained by the Sec7 retary of the Treasury and prescribed by regu8 lations by him. 

9 ‘‘(G) Requiring the retailer to take and 

10 dispose of a certain quota of any of such prod11 ucts. 

12 ‘‘(3) COMMERCIAL BRIBERY.—To induce 

13 through any of the following means, any trade buyer 

14 engaged in the sale of cannabis products, to pur15 chase any such products from such person to the ex16 clusion in whole or in part of cannabis products sold 

17 or offered for sale by other persons in interstate or 

18 foreign commerce, if such inducement is made in the 

19 course of interstate or foreign commerce, or if such 

20 person engages in the practice of using such means, 

21 or any of them, to such an extent as substantially 

22 to restrain or prevent transactions in interstate or 

23 foreign commerce in any such products, or if the di24 rect effect of such inducement is to prevent, deter, 

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1 fering for sale any such products to such trade 

2 buyer in interstate or foreign commerce: 

3 ‘‘(A) Commercial bribery. 

4 ‘‘(B) Offering or giving any bonus, pre5 mium, or compensation to any officer, or em6 ployee, or representative of the trade buyer. 

7 ‘‘(4) CONSIGNMENT SALES.—To sell, offer for 

8 sale, or contract to sell to any trade buyer engaged 

9 in the sale of cannabis products, or for any such 

10 trade buyer to purchase, offer to purchase, or con11 tract to purchase, any such products on consignment 

12 or under conditional sale or with the privilege of re13 turn or on any basis otherwise than a bona fide sale, 

14 or where any part of such transaction involves, di15 rectly or indirectly, the acquisition by such person 

16 from the trade buyer or his agreement to acquire 

17 from the trade buyer other cannabis products, if 

18 such sale, purchase, offer, or contract is made in the 

19 course of interstate or foreign commerce, or if such 

20 person or trade buyer engages in such practice to 

21 such an extent as substantially to restrain or prevent 

22 transactions in interstate or foreign commerce in 

23 any such products or if the direct effect of such sale, 

24 purchase, offer, or contract is to prevent, deter, 

25 hinder, or restrict other persons from selling or ofVerDate Sep 11 2014 04:54 Jul 26, 2022 Jkt 029200 PO 00000 Frm 00230 Fmt 6652 Sfmt 6201 E:\BILLS\S4591.IS S4591

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1 fering for sale any such products to such trade 

2 buyer in interstate or foreign commerce. 

3 ‘‘(5) LABELING.—To sell or ship or deliver for 

4 sale or shipment, or otherwise introduce in interstate 

5 or foreign commerce, or to receive therein, or to re6 move from customs custody for consumption, any 

7 cannabis product in packages, unless such products 

8 are packaged, and labeled in conformity with such 

9 regulations, to be prescribed by the Secretary, with 

10 respect to packaging, marking, branding, and label11 ing and size of container— 

12 ‘‘(A) as will prohibit deception of the con13 sumer with respect to such products or the 

14 quantity thereof and as will prohibit, irrespec15 tive of falsity, such statements relating to man16 ufacturing processes, analyses, guarantees, and 

17 scientific or irrelevant matters as the Secretary 

18 finds to be likely to mislead the consumer; 

19 ‘‘(B) as will provide the consumer with in20 formation described in section 1103 of the Fed21 eral Food, Drug, and Cosmetic Act; 

22 ‘‘(C) as will require compliance with sec23 tion 112(b) of the Cannabis Administration and 

24 Opportunity Act; 


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1 ‘‘(D) as will prohibit statements on the 

2 label that are disparaging of a competitor’s 

3 products or are false, misleading, obscene, or 

4 indecent; and 

5 ‘‘(E) as will prevent deception of the con6 sumer by use of a trade or brand name that is 

7 the name of any living individual of public 

8 prominence, or existing private or public organi9 zation, or is a name that is in simulation or is 

10 an abbreviation thereof, and as will prevent the 

11 use of a graphic, pictorial, or emblematic rep12 resentation of any such individual or organiza13 tion, if the use of such name or representation 

14 is likely falsely to lead the consumer to believe 

15 that the product has been indorsed, made, or 

16 used by, or produced for, or under the super17 vision of, or in accordance with the specifica18 tions of, such individual or organization. 

19 ‘‘(6) ADVERTISING.—To publish or disseminate 

20 or cause to be published or disseminated by radio 

21 broadcast, or in any newspaper, periodical or other 

22 publication or by any sign or outdoor advertisement 

23 or any other printed or graphic matter, any adver24 tisement of cannabis, if such advertisement is in, or 

25 is calculated to induce sales in, interstate or foreign 


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1 commerce, or is disseminated by mail, unless such 

2 advertisement is in conformity with such regulations, 

3 to be prescribed by the Secretary, as will— 

4 ‘‘(A) prevent deception of the consumer 

5 with respect to the products advertised and as 

6 will prohibit, irrespective of falsity, such state7 ments relating to manufacturing processes, 

8 analyses, guaranties, and scientific or irrelevant 

9 matters as the Secretary finds to be likely to 

10 mislead the consumer; 

11 ‘‘(B) provide the consumer with adequate 

12 information as to the identity and quality of the 

13 products advertised, the characteristics thereof, 

14 and the person responsible for the advertise15 ment; 

16 ‘‘(C) prohibit statements that are dispar17 aging of a competitor’s products or are false, 

18 misleading, obscene, or indecent; and 

19 ‘‘(D) prevent statements inconsistent with 

20 any statement on the labeling of the products 

21 advertised. 

22 ‘‘(b) REMOVAL OR DESTRUCTION OF LABEL.—It 

23 shall be unlawful for any person to alter, mutilate, destroy, 

24 obliterate, or remove any mark, brand, or label upon can25 nabis products held for sale in interstate or foreign comVerDate Sep 11 2014 04:54 Jul 26, 2022 Jkt 029200 PO 00000 Frm 00233 Fmt 6652 Sfmt 6201 E:\BILLS\S4591.IS S4591

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1 merce or after shipment therein, except as authorized by 

2 Federal law or except pursuant to regulations of the Sec3 retary authorizing relabeling for purposes of compliance 

4 with the requirements of this subsection or of State law. 

5 ‘‘(c) EXCEPTIONS.— 

6 ‘‘(1) CONSIGNMENT SALES.—Paragraph (4) of 

7 subsection (a) shall not apply to transactions involv8 ing solely the bona fide return of merchandise for 

9 ordinary and usual commercial reasons arising after 

10 the merchandise has been sold. 

11 ‘‘(2) LABELING.—Paragraph (5) of such sub12 section shall not apply to the use of the name of any 

13 person engaged in business as a manufacturer of 

14 cannabis products, nor to the use by any person of 

15 a trade or brand name used by him or his prede16 cessor in interest prior to the date of enactment of 

17 the Cannabis Administration and Opportunity Act. 

18 ‘‘(3) ADVERTISING.—Paragraph (6) of such 

19 subsection shall not apply to the publisher of any 

20 newspaper, periodical, or other publication, or radio 

21 broadcaster, unless such publisher or radio broad22 caster is engaged in the business of importing can23 nabis into the United States, or cultivating, pro24 ducing, manufacturing, packaging, or warehousing 


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1 cannabis, or purchasing cannabis for resale at whole2 sale, directly or indirectly or through an affiliate. 

3 ‘‘(4) STATE LAW.—With respect to subsection 

4 (a)(2), subparagraphs (A), (B), (C), (E), and (F) of 

5 such subsection shall apply to transactions between 

6 a retailer or trade buyer in any State and a pro7 ducer, importer, or wholesaler of cannabis products 

8 outside such State only to the extent that the law 

9 of such State imposes similar requirements with re10 spect to similar transactions between a retailer or 

11 trade buyer in such State and a producer, importer, 

12 or wholesaler of cannabis products in such State, as 

13 the case may be. 

14 ‘‘(5) PROPRIETARY INTEREST.—Pursuant to 

15 regulations or other guidance promulgated by the 

16 Secretary, with respect to subparagraphs (A) and 

17 (B) of subsection (a)(2), rules similar to the rules of 

18 sections 6.27 and 6.33 of title 27, Code of Federal 

19 Regulations (as in effect on the date of enactment 

20 of this title), shall apply. 

21 ‘‘SEC. 305. REMEDIES FOR VIOLATIONS. 

22 ‘‘(a) CRIMINAL FINE.— 

23 ‘‘(1) GENERALLY.—Whoever violates section 

24 301 shall be fined not more than $1,000. 


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1 ‘‘(2) SETTLEMENT IN COMPROMISE.—The Sec2 retary may decide not to refer a violation of such 

3 section to the Attorney General for prosecution but 

4 instead to collect a payment from the violator of no 

5 more than $500 for that violation. 

6 ‘‘(b) CIVIL ACTION FOR RELIEF.—The Attorney 

7 General may, in a civil action, obtain appropriate relief 

8 to prevent and restrain a violation of this title. 

9 ‘‘SEC. 306. DEFINITIONS. 

10 ‘‘In this title— 

11 ‘‘(1) the term ‘cannabis’ has the meaning given 

12 such term in section 3 of the Cannabis Administra13 tion and Opportunity Act; 

14 ‘‘(2) the term ‘Secretary’ means the Secretary 

15 of the Treasury or the Secretary’s delegate; and 

16 ‘‘(3) the term ‘State’ includes the District of 

17 Columbia, Puerto Rico, and any territory or posses18 sion of the United States.’’. 

19 (b) APPROPRIATIONS.—In addition to amounts other20 wise available, there is appropriated, out of any funds in 

21 the Treasury not otherwise appropriated, for fiscal year 

22 2023— 

23 (1) $15,000,000 to the Secretary of Labor for 

24 carrying out the activities of the Secretary of Labor 

25 under section 302 of the Federal Alcohol AdminisVerDate Sep 11 2014 04:54 Jul 26, 2022 Jkt 029200 PO 00000 Frm 00236 Fmt 6652 Sfmt 6201 E:\BILLS\S4591.IS S4591

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1 tration Act, to remain available until September 30, 

2 2027; and 

3 (2) $10,000,000 to the National Labor Rela4 tions Board for carrying out the activities of the Na5 tional Labor Relations Board under such section, to 

6 remain available until September 30, 2027. 

7 SEC. 512. INCREASED FUNDING FOR THE ALCOHOL, TO8 BACCO, AND CANNABIS TAX AND TRADE BU9 REAU. 

10 In addition to any other amounts otherwise available 

11 to the Alcohol, Tobacco, and Cannabis Tax and Trade Bu12 reau, there is appropriated, out of any funds in the Treas13 ury not otherwise appropriated, $100,000,000 for each of 

14 the fiscal years 2023 through 2027 to carry out— 

15 (1) sections 102 and 112 of this Act, 

16 (2) chapter 56 of the Internal Revenue Code of 

17 1986 (as added by section 401 of this Act), 

18 (3) title III of the Federal Alcohol Administra19 tion Act (as added by section 511 of this Act), and 

20 (4) section 1111 of the Homeland Security Act 

21 of 2002 (6 U.S.C. 531). 

22 TITLE VI—WORKPLACE HEALTH 

23 AND SAFETY PROVISIONS 

24 SEC. 601. DEFINITIONS. 

25 In this title: 


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1 (1) CANNABIS INDUSTRY.—The term ‘‘cannabis 

2 industry’’ means any operation described in section 

3 301 of the Federal Alcohol Administration Act, as 

4 added by section 511. 

5 (2) EMPLOYEE; EMPLOYER.—The terms ‘‘em6 ployee’’ and ‘‘employer’’ have the meanings given 

7 such terms in section 3 of the Occupational Safety 

8 and Health Act of 1970 (29 U.S.C. 652). 

9 (3) EMPLOYER IN THE CANNABIS INDUSTRY.— 

10 The term ‘‘employer in the cannabis industry’’ 

11 means an employer engaged in any operation requir12 ing a permit under section 301 of the Federal Alco13 hol Administration Act, as added by section 511. 

14 (4) PERSON.—The term ‘‘person’’ has the 

15 meaning given such term in section 3 of the Occupa16 tional Safety and Health Act of 1970 (29 U.S.C. 

17 652). 

18 (5) SECRETARY.—The term ‘‘Secretary’’ means 

19 the Secretary of Labor. 

20 (6) WORKER IN THE CANNABIS INDUSTRY.— 

21 The term ‘‘worker in the cannabis industry’’ means 

22 any individual performing work for remuneration in 

23 the cannabis industry. 


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1 SEC. 602. FINDING REGARDING EMPLOYERS IN THE CAN2 NABIS INDUSTRY. 

3 Congress finds that employers in the cannabis indus4 try are required to comply with occupational safety and 

5 health standards issued under section 6 of the Occupa6 tional Safety and Health Act of 1970 (29 U.S.C. 655) 

7 and other regulations issued under such Act. 

8 SEC. 603. CANNABIS AS A TARGETED TOPIC FOR SUSAN 

9 HARWOOD TRAINING GRANT PROGRAM. 

10 The Secretary shall, in awarding Susan Harwood 

11 training grants under the Occupational Safety and Health 

12 Act of 1970 (29 U.S.C. 651 et seq.) for the 2 fiscal years 

13 following the date of enactment of this Act, designate can14 nabis as a targeted topic for such grants. 

15 SEC. 604. GUIDANCE ON RECOMMENDED PRACTICES. 

16 (a) IN GENERAL.—Not later than 60 days after the 

17 date of enactment of this Act, the Assistant Secretary of 

18 Labor for Occupational Safety and Health and the Direc19 tor of the National Institute for Occupational Safety and 

20 Health of the Department of Health and Human Services 

21 shall jointly issue guidance on recommended practices to 

22 protect workers in the cannabis industry. 

23 (b) CONTENTS.—The guidance required under this 

24 section shall— 


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1 (1) address the hazards workers in the cannabis 

2 industry face throughout the life cycle of cannabis, 

3 including from cultivation to sale and resale; 

4 (2) provide methods to protect cannabis work5 ers; and 

6 (3) indicate specific occupational safety and 

7 health standards promulgated under section 6 of the 

8 Occupational Safety and Health Act of 1970 (29 

9 U.S.C. 655), and any other requirements through 

10 regulations issued under such Act, that apply to the 

11 cannabis industry, including an indication of any 

12 training requirement that employers in the cannabis 

13 industry are subject to under any occupational safe14 ty and health standard promulgated under such sec15 tion 6 or under any other regulations issued under 

16 such Act. 

17 SEC. 605. WORKPLACE IMPACT OF CANNABIS LEGALIZA18 TION. 

19 (a) STUDY.— 

20 (1) IN GENERAL.—Not later than 1 year after 

21 the date of enactment of this Act, the Director of 

22 the National Institute for Occupational Safety and 

23 Health shall conduct research on the impact of the 

24 legalization of recreational cannabis by States on the 

25 workplace, which may include— 


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1 (A) barriers for the Director and extra2 mural partners in conducting occupational safe3 ty and health research with respect to cannabis, 

4 including to further identify potential hazards, 

5 characterize exposures, and evaluate associa6 tions between exposures and adverse health ef7 fects; 

8 (B) occupational health and safety training 

9 for workers in the cannabis industry; 

10 (C) the controls and actions taken by em11 ployers in the cannabis industry to protect 

12 workers and the effectiveness of such controls 

13 and actions; 

14 (D) efficacy of cannabis for treating occu15 pational related injuries or illnesses; and 

16 (E) other topics as determined relevant by 

17 the Director. 

18 (2) COLLABORATION.—In conducting the re19 search under paragraph (1), the Director of the Na20 tional Institute for Occupational Safety and Health 

21 may collaborate with the Occupational Safety and 

22 Health Administration, other relevant Federal de23 partments and agencies, and relevant public and pri24 vate stakeholders. 


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1 (3) APPROPRIATIONS.—In addition to amounts 

2 otherwise available, there is appropriated, out of any 

3 funds in the Treasury not otherwise appropriated, 

4 $2,000,000 for each of fiscal years 2023 through 

5 2025 to carry out paragraph (1). 

6 (b) BEST PRACTICES.—Not later than 2 years after 

7 the date of enactment of this Act, the Director of the Na8 tional Institute for Occupational Safety and Health shall 

9 develop a set of recommendations outlining policies, best 

10 practices, and training recommendations for use by em11 ployers that are planning to transition or update work12 place policies related to the use of recreational cannabis. 

13 SEC. 606. GRANTS FOR COMMUNITY-BASED EDUCATION, 

14 OUTREACH, AND ENFORCEMENT WITH RE15 SPECT TO THE RIGHTS OF WORKERS IN THE 

16 CANNABIS INDUSTRY. 

17 (a) DEFINITION OF ELIGIBLE ENTITY.—In this sec18 tion, the term ‘‘eligible entity’’ means— 

19 (1) a public or private nonprofit organization 

20 with experience educating workers of their rights; or 

21 (2) a partnership of organizations described in 

22 paragraph (1). 

23 (b) PROGRAM AUTHORIZED.—The Secretary shall 

24 award grants to eligible entities, on a competitive basis, 

25 to enable the eligible entities to carry out— 


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1 (1) one or more activities to— 

2 (A) educate workers in the cannabis indus3 try of their rights under Federal, State, and 

4 local civil rights, labor, and employment laws, 

5 with a focus on providing such education to 

6 such workers who are low-wage workers; 

7 (B) educate persons hiring workers in the 

8 cannabis industry regarding their obligations 

9 under such laws; or 

10 (C) connect and refer workers in the can11 nabis industry to additional services, as appro12 priate and available, to assist them in pursuing 

13 their rights under such laws; or 

14 (2) any other activity the Secretary may reason15 ably prescribe for the purposes of supporting work16 ers in the cannabis industry. 

17 (c) APPLICATIONS.— 

18 (1) IN GENERAL.—An eligible entity desiring a 

19 grant under this section shall submit an application 

20 to the Secretary at such time, in such manner, and 

21 containing such information as the Secretary may 

22 require. 

23 (2) PARTNERSHIP APPLICATIONS.—In the case 

24 of an eligible entity that is a partnership, the eligible 

25 entity may designate, in the application, a single orVerDate Sep 11 2014 04:54 Jul 26, 2022 Jkt 029200 PO 00000 Frm 00243 Fmt 6652 Sfmt 6201 E:\BILLS\S4591.IS S4591

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1 ganization in the partnership as the lead entity for 

2 purposes of receiving and disbursing funds. 

3 (3) CONTENTS.—An application described in 

4 paragraph (1) shall include— 

5 (A) information on the training and edu6 cation that will be provided through the grant 

7 to workers in the cannabis industry and persons 

8 hiring workers in the cannabis industry; 

9 (B) information on any geographic area 

10 targeted by the activities supported through the 

11 grant; and 

12 (C) the method by which the eligible entity 

13 will measure the results of the activities sup14 ported through the grant and a method by 

15 which the eligible entity will assess the demo16 graphics of the workers served by such activi17 ties. 

18 (d) DURATION OF GRANTS.—Each grant awarded 

19 under this section shall be for a period of not more than 

20 3 years. 

21 (e) AMOUNT OF GRANTS.—Each grant awarded 

22 under this section shall be in an amount not to exceed 

23 $300,000. 

24 (f) REPORTING REQUIREMENTS.—Each eligible enti25 ty receiving a grant under this section shall, as determined 


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1 by the Secretary, report to the Secretary the demographics 

2 of the workers served by the grant and the results of the 

3 activities supported by the grant as such demographics 

4 and results are measured by the methods described in the 

5 application submitted by the entity under subsection 

6 (c)(3)(C). 

7 (g) APPROPRIATIONS.—In addition to amounts other8 wise available, there is appropriated, out of any funds in 

9 the Treasury not otherwise appropriated, $15,000,000 for 

10 each of fiscal years 2023 through 2027 to carry out this 

11 section. 

12 TITLE VII—BANKING, HOUSING, 

13 AND COMMUNITY DEVELOP14 MENT 

15 SEC. 701. PURPOSES; SENSE OF CONGRESS. 

16 (a) PURPOSES.—The purposes of this title are— 

17 (1) to reinvest in low- or moderate-income areas 

18 and communities most affected by the war on drugs; 

19 and 

20 (2) encourage financial institutions to provide 

21 financial services to small or minority-owned busi22 nesses in the communities described in paragraph 

23 (1). 

24 (b) SENSE OF CONGRESS.—It is the sense of Con25 gress that each appropriate Federal financial supervisory 


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1 agency should use its authority pursuant to section 804 

2 of the Community Reinvestment Act of 1977 (12 U.S.C. 

3 2901) when examining financial institutions to encourage 

4 the institutions to help meet the credit needs of the local 

5 communities in which they are chartered, consistent with 

6 the safe and sound operation of such institutions, includ7 ing those communities that are most affected by the war 

8 on drugs. 

9 SEC. 702. REQUIREMENTS FOR FILING SUSPICIOUS ACTIV10 ITY REPORTS. 

11 Section 5318(g) of title 31, United States Code, is 

12 amended— 

13 (1) by redesignating paragraph (11) as para14 graph (12); and 

15 (2) by inserting after paragraph (10) the fol16 lowing: 

17 ‘‘(11) REQUIREMENTS FOR CANNABIS-RELATED

18 LEGITIMATE BUSINESSES.— 

19 ‘‘(A) DEFINITIONS.—In this paragraph: 

20 ‘‘(i) CANNABIS.—The term ‘cannabis’ 

21 has the meaning given the term in section 

22 3 of the Cannabis Administration and Op23 portunity Act. 

24 ‘‘(ii) CANNABIS-RELATED LEGITIMATE

25 BUSINESS; CANNABIS-RELATED SERVICE


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1 PROVIDER.—The terms ‘cannabis-related 

2 legitimate business’ and ‘cannabis-related 

3 service provider’ have the meanings given 

4 the terms in section 3 of the Small Busi5 ness Act (15 U.S.C. 632). 

6 ‘‘(iii) FINANCIAL SERVICE.—The term 

7 ‘financial service’— 

8 ‘‘(I) means— 

9 ‘‘(aa) a financial product or 

10 service, as defined in section 

11 1002 of the Consumer Financial 

12 Protection Act of 2010 (12 

13 U.S.C. 5481), regardless if the 

14 customer receiving the product or 

15 service is a consumer or commer16 cial entity; and 

17 ‘‘(bb) a financial product or 

18 service, or any combination of 

19 products and services, permitted 

20 to be provided by— 

21 ‘‘(AA) a national bank 

22 or a financial subsidiary 

23 pursuant to the authority 

24 provided under the para25 graph designated as the 


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1 ‘Seventh’ of section 5136 of 

2 the Revised Statutes (12 

3 U.S.C. 24) or section 5136A 

4 of the Revised Statutes (12 

5 U.S.C. 24a); or 

6 ‘‘(BB) a Federal credit 

7 union, pursuant to the au8 thority provided under the 

9 Federal Credit Union Act 

10 (12 U.S.C. 1751 et seq.); 

11 and 

12 ‘‘(II) includes— 

13 ‘‘(aa) the business of insur14 ance; 

15 ‘‘(bb) whether performed di16 rectly or indirectly, the author17 izing, processing, clearing, set18 tling, billing, transferring for de19 posit, transmitting, delivering, in20 structing to be delivered, recon21 ciling, collecting, or otherwise ef22 fectuating or facilitating of pay23 ments or funds, if such payments 

24 or funds are made or transferred 

25 by any means, including by the 


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1 use of credit cards, debit cards, 

2 other payment cards, or other ac3 cess devices, accounts, original or 

4 substitute checks, or electronic 

5 funds transfers; 

6 ‘‘(cc) acting as a money 

7 transmitting business that di8 rectly or indirectly makes use of 

9 a depository institution in con10 nection with effectuating or fa11 cilitating a payment for a can12 nabis-related legitimate business 

13 or cannabis-related service pro14 vider in compliance with section 

15 5330 of title 31, United States 

16 Code, and any applicable State 

17 law; and 

18 ‘‘(dd) acting as an armored 

19 car service for processing and de20 positing with a depository institu21 tion or a Federal reserve bank 

22 with respect to any monetary in23 struments, as defined in section 

24 1956(c) of title 18, United States 

25 Code. 


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1 ‘‘(B) REPORT.—With respect to a financial 

2 institution or any director, officer, employee, or 

3 agent of a financial institution that reports a 

4 suspicious transaction pursuant to this sub5 section, if the reason for the report relates to 

6 a cannabis-related legitimate business or can7 nabis-related service provider, the report shall 

8 comply with appropriate guidance issued by the 

9 Financial Crimes Enforcement Network. Not 

10 later than the end of the 180-day period begin11 ning on the date of enactment of this para12 graph, the Secretary shall update the February 

13 14, 2014, guidance titled ‘BSA Expectations 

14 Regarding Marijuana-Related Businesses’ 

15 (FIN–2014–G001) or issue new regulations to 

16 ensure that the guidance— 

17 ‘‘(i) is consistent with the purpose and 

18 intent of the Cannabis Administration and 

19 Opportunity Act; 

20 ‘‘(ii) addresses the deposit and move21 ment of cash held by cannabis-legitimate 

22 business or cannabis-related service pro23 vider as of the date of enactment of this 

24 paragraph; and 


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1 ‘‘(iii) does not significantly inhibit the 

2 provision of financial services to a can3 nabis-related legitimate business or can4 nabis-related service provider in the United 

5 States. 

6 ‘‘(C) PURPOSE.—Any guidance or regula7 tion required under this section shall ensure 

8 that a financial institution and any director, 

9 employee, officer, or agent of a financial institu10 tion continues to report suspicious activities re11 lated to cannabis-related legitimate businesses 

12 and preserve the ability of the Financial Crimes 

13 Enforcement Network and law enforcement to 

14 prevent and combat illicit activity. The Finan15 cial Crimes Enforcement Network shall promul16 gate regulations or issue guidance as necessary 

17 on financial institutions that provide financial 

18 services to cannabis-related legitimate busi19 nesses, cannabis-related service providers, or 

20 employees, owners, or operators, regarding obli21 gations related to anti-money laundering and 

22 under this subchapter, including addressing the 

23 filing of suspicious activity reports consistent 

24 with this section, customer due diligence re25 quirements, indirect relationships with canVerDate Sep 11 2014 04:54 Jul 26, 2022 Jkt 029200 PO 00000 Frm 00251 Fmt 6652 Sfmt 6201 E:\BILLS\S4591.IS S4591

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1 nabis-related legitimate businesses, and 

2 verification and documentation requirements for 

3 financial institutions intending to handle funds 

4 from cannabis-related legitimate businesses to 

5 ensure such funds are clearly linked with law, 

6 other lawful activity, and regulations. The Sec7 retary shall ensure that such regulations are 

8 consistent with the purpose and intent of the 

9 Cannabis Administration and Opportunity Act 

10 while ensuring the Financial Crimes Enforce11 ment Network has sufficient resources to pre12 vent and combat illicit activity.’’. 

13 SEC. 703. GUIDANCE AND EXAMINATION PROCEDURES. 

14 Not later than 180 days after the date of enactment 

15 of this Act and consistent with the updated Financial 

16 Crimes Enforcement Network guidance described in para17 graph (11)(B) of section 5318(g) of title 31, United States 

18 Code, as added by section 702 of this title, the Financial 

19 Institutions Examination Council, in consultation with the 

20 Financial Crimes Enforcement Network, shall develop uni21 form guidance and examination procedures for depository 

22 institutions that provide financial services to cannabis-re23 lated legitimate businesses and cannabis-related service 

24 providers. 


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1 SEC. 704. INVESTMENT IN COMMUNITIES. 

2 (a) CDFI SUPPORT.—In addition to funds otherwise 

3 available, there is appropriated out of any money in the 

4 Treasury not otherwise appropriated, $200,000,000 for 

5 each of fiscal years 2023 through 2027 to the Community 

6 Development Financial Institutions Fund established 

7 under section 104 of the Community Development Bank8 ing and Financial Institutions Act of 1994 (12 U.S.C. 

9 4703) to provide grants to expand lending and investment 

10 in low- or moderate-income areas, including those most af11 fected by the war on drugs. 

12 (b) MDI SUPPORT.—In addition to funds otherwise 

13 available, there is appropriated out of any money in the 

14 Treasury not otherwise appropriated, $200,000,000 for 

15 each of fiscal years 2023 through 2027 to the Emergency 

16 Capital Investment Fund established under section 

17 104A(b) of the Community Development Banking and Fi18 nancial Institutions Act of 1994 (12 U.S.C. 4703a) to 

19 support the efforts of low- and moderate-income commu20 nity financial institutions to, among other things, provide 

21 loans, grants, and forbearance for small businesses, mi22 nority-owned businesses, and consumers, especially in low23 income and underserved communities, including those 

24 most affected by the war on drugs. 

25 (c) GRANTS TO ADDRESS HOUSING AND COMMUNITY

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1 NITIES ADVERSELY IMPACTED BY THE WAR ON

2 DRUGS.— 

3 (1) DEFINITIONS.—In this subsection: 

4 (A) ELIGIBLE ACTIVITY.—The term ‘‘eligi5 ble activity’’— 

6 (i) means any eligible activity— 

7 (I) described in title I of the 

8 Housing and Community Development 

9 Act of 1974 (42 U.S.C. 5301 et seq.), 

10 the HOME Investment Partnerships 

11 Act (42 U.S.C. 12721 et seq.), or sec12 tion 415 of the McKinney-Vento 

13 Homeless Assistance Act (42 U.S.C. 

14 11374); and 

15 (II) that addresses the needs of 

16 individuals and census tracts in the 

17 provisions described in subclause (I); 

18 and 

19 (ii) does not include administrative ex20 penses that exceed 15 percent of the 

21 amount of a grant made under this sub22 section. 

23 (B) ELIGIBLE GRANTEE.—The term ‘‘eligi24 ble grantee’’ includes any State, unit of local 

25 government, or Indian tribe eligible to receive a 


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1 grant under title I of the Housing and Commu2 nity Development Act of 1974 (42 U.S.C. 5301 

3 et seq.). 

4 (C) INDIVIDUAL ADVERSELY IMPACTED BY

5 THE WAR ON DRUGS.—The term ‘‘individual 

6 adversely impacted by the War on Drugs’’ has 

7 the meaning given the term in section 3062 as 

8 defined in section 3062 of the Omnibus Crime 

9 Control and Safe Streets Act of 1968, as added 

10 by section 301(a)(2) of this Act. 

11 (D) STATE; UNIT OF LOCAL GOVERNMENT; 

12 INDIAN TRIBE.—The terms ‘‘State’’, ‘‘unit of 

13 local government’’, and ‘‘Indian Tribe’’ have the 

14 meanings given the terms in section 102 of the 

15 Housing and Community Development Act of 

16 1974 (42 U.S.C. 5302). 

17 (2) GRANTS.—In addition to funds otherwise 

18 available, there is appropriated out of any money in 

19 the Treasury not otherwise appropriated, 

20 $300,000,000 for each of fiscal years 2023 through 

21 2027 to the Secretary of Housing and Urban Devel22 opment for grants to eligible grantees for eligible ac23 tivities to address the housing and community devel24 opment needs of— 


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1 (A) individuals adversely impacted by the 

2 War on Drugs; and 

3 (B) housing and community development 

4 needs of census tracts where a disproportionate 

5 share of residents are individuals described in 

6 subparagraph (A), as determined by the Sec7 retary. 

8 (3) AWARD CRITERIA.—In awarding grants 

9 under this subsection, the Secretary of Housing and 

10 Urban Development shall establish criteria for 

11 awards as may be necessary to demonstrate that the 

12 eligible grantee has the need, capacity, and commit13 ment to carry out a grant under this subsection to 

14 address the needs described in paragraph (2). 

15 (4) ADMINISTRATION AND TECHNICAL ASSIST16 ANCE.—Of the amount appropriated under this sec17 tion, not more than 10 percent shall be available to 

18 the Secretary of Housing and Urban Development 

19 for administration, evaluation, and technical assist20 ance activities to carry out the grant program under 

21 this subsection. 

22 SEC. 705. FAIR HIRING IN BANKING. 

23 (a) FEDERAL DEPOSIT INSURANCE ACT.—Section 

24 19 of the Federal Deposit Insurance Act (12 U.S.C. 1829) 

25 is amended— 


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1 (1) by inserting after subsection (b) the fol2 lowing: 

3 ‘‘(c) EXCEPTIONS.— 

4 ‘‘(1) CERTAIN OLDER OFFENSES.— 

5 ‘‘(A) IN GENERAL.—With respect to an in6 dividual, subsection (a) shall not apply to an of7 fense if— 

8 ‘‘(i) it has been 7 years or more since 

9 the offense occurred; or 

10 ‘‘(ii) the individual was incarcerated 

11 with respect to the offense and it has been 

12 5 years or more since the individual was 

13 released from incarceration. 

14 ‘‘(B) OFFENSES COMMITTED BY INDIVID15 UALS 21 OR YOUNGER.—For individuals who 

16 committed an offense when they were 21 years 

17 of age or younger, subsection (a) shall not 

18 apply to the offense if it has been more than 30 

19 months since the sentencing occurred. 

20 ‘‘(C) LIMITATION.—This paragraph shall 

21 not apply to an offense described under sub22 section (a)(2). 

23 ‘‘(2) EXPUNGEMENT AND SEALING.—With re24 spect to an individual, subsection (a) shall not apply 

25 to an offense if— 


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1 ‘‘(A) there is an order of expungement, 

2 sealing, or dismissal that has been issued in re3 gard to the conviction in connection with such 

4 offense; and 

5 ‘‘(B) it is intended by the language in the 

6 order itself, or in the legislative provisions 

7 under which the order was issued, that the con8 viction shall be destroyed or sealed from the in9 dividual’s State or Federal record, even if ex10 ceptions allow the record to be considered for 

11 certain character and fitness evaluation pur12 poses. 

13 ‘‘(3) DE MINIMIS EXEMPTION.— 

14 ‘‘(A) IN GENERAL.—Subsection (a) shall 

15 not apply to such de minimis offenses as the 

16 Corporation determines, by rule. 

17 ‘‘(B) CONFINEMENT CRITERIA.—In issuing 

18 rules under subparagraph (A), the Corporation 

19 shall include a requirement that the offense was 

20 punishable by a term of three years or less con21 fined in a correctional facility, where such con22 finement— 

23 ‘‘(i) is calculated based on the time an 

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1 ment or a sanction, not as pretrial deten2 tion; and 

3 ‘‘(ii) does not include probation or pa4 role where an individual was restricted to 

5 a particular jurisdiction or was required to 

6 report occasionally to an individual or a 

7 specific location. 

8 ‘‘(C) BAD CHECK CRITERIA.—In setting 

9 the criteria for de minimis offenses under sub10 paragraph (A), if the Corporation establishes 

11 criteria with respect to insufficient funds 

12 checks, the Corporation shall require that the 

13 aggregate total face value of all insufficient 

14 funds checks across all convictions or program 

15 entries related to insufficient funds checks is 

16 $2,000 or less. 

17 ‘‘(D) DESIGNATED LESSER OFFENSES.— 

18 Subsection (a) shall not apply to certain lesser 

19 offenses (including the use of a fake ID, shop20 lifting, trespass, fare evasion, driving with an 

21 expired license or tag, and such other low-risk 

22 offenses as the Corporation may designate) if 1 

23 year or more has passed since the applicable 

24 conviction or program entry.’’; and 

25 (2) by adding at the end the following: 


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1 ‘‘(f) CONSENT APPLICATIONS.— 

2 ‘‘(1) IN GENERAL.—The Corporation shall ac3 cept consent applications from an individual and 

4 from an insured depository institution or depository 

5 institution holding company on behalf of an indi6 vidual that are filed separately or contemporaneously 

7 with a regional office of the Corporation. 

8 ‘‘(2) SPONSORED APPLICATIONS FILED WITH

9 REGIONAL OFFICES.—Consent applications filed at a 

10 regional office of the Corporation by an insured de11 pository institution or depository institution holding 

12 company on behalf of an individual— 

13 ‘‘(A) shall be reviewed by such office; 

14 ‘‘(B) may be approved or denied by such 

15 office, if such authority has been delegated to 

16 such office by the Corporation; and 

17 ‘‘(C) may only be denied by such office if 

18 the general counsel of the Corporation (or a 

19 designee) certifies that the denial is consistent 

20 with this section. 

21 ‘‘(3) INDIVIDUAL APPLICATIONS FILED WITH

22 REGIONAL OFFICES.—Consent applications filed at a 

23 regional office by an individual— 

24 ‘‘(A) shall be reviewed by such office; and 


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1 ‘‘(B) may be approved or denied by such 

2 office, if such authority has been delegated to 

3 such office by the Corporation, except with re4 spect to— 

5 ‘‘(i) cases involving an offense de6 scribed under subsection (a)(2); and 

7 ‘‘(ii) such other high-level security 

8 cases as may be designated by the Cor9 poration. 

10 ‘‘(4) NATIONAL OFFICE REVIEW.—The national 

11 office of the Corporation shall— 

12 ‘‘(A) review any consent application with 

13 respect to which a regional office is not author14 ized to approve or deny the application; and 

15 ‘‘(B) review any consent application that is 

16 denied by a regional office, if the individual re17 quests a review by the national office. 

18 ‘‘(5) FORMS AND INSTRUCTIONS.— 

19 ‘‘(A) AVAILABILITY.—The Corporation 

20 shall make all forms and instructions related to 

21 consent applications available to the public, in22 cluding on the website of the Corporation. 

23 ‘‘(B) CONTENTS.—The forms and instruc24 tions described under subparagraph (A) shall 

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1 sive list of items that may accompany the appli2 cation, including clear guidance on evidence 

3 that may support a finding of rehabilitation. 

4 ‘‘(6) CONSIDERATION OF CRIMINAL HISTORY.— 

5 ‘‘(A) REGIONAL OFFICE CONSIDER6 ATION.—In reviewing a consent application, a 

7 regional office shall— 

8 ‘‘(i) primarily rely on the criminal his9 tory record of the Federal Bureau of In10 vestigation; and 

11 ‘‘(ii) provide such record to the appli12 cant to review for accuracy. 

13 ‘‘(B) CERTIFIED COPIES.—The Corpora14 tion may not require an applicant to provide 

15 certified copies of criminal history records un16 less the Corporation determines that there is a 

17 clear and compelling justification to require ad18 ditional information to verify the accuracy of 

19 the criminal history record of the Federal Bu20 reau of Investigation. 

21 ‘‘(7) CONSIDERATION OF REHABILITATION.— 

22 Consistent with title VII of the Civil Rights Act of 

23 1964 (42 U.S.C. 2000e et seq.), the Corporation 

24 shall— 


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1 ‘‘(A) conduct an individualized assessment 

2 when evaluating consent applications that takes 

3 into account evidence of rehabilitation, the ap4 plicant’s age at the time of the conviction or 

5 program entry, the time that has elapsed since 

6 conviction or program entry, and the relation7 ship of individual’s offense to the responsibil8 ities of the applicable position; 

9 ‘‘(B) consider the individual’s employment 

10 history, letters of recommendation, certificates 

11 documenting participation in substance abuse 

12 programs, successful participating in job prepa13 ration and educational programs, and other rel14 evant mitigating evidence; and 

15 ‘‘(C) consider any additional information 

16 the Corporation determines necessary for safety 

17 and soundness. 

18 ‘‘(8) SCOPE OF EMPLOYMENT.—With respect to 

19 an approved consent application filed by an insured 

20 depository institution or depository institution hold21 ing company on behalf of an individual, if the Cor22 poration determines it appropriate, such approved 

23 consent application shall allow the individual to work 

24 for the same employer (without restrictions on the 

25 location) and across positions, except that the prior 


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1 consent of the Corporation (which may require a 

2 new application) shall be required for any proposed 

3 significant changes in the individual’s security-re4 lated duties or responsibilities, such as promotion to 

5 an officer or other positions that the employer deter6 mines will require higher security screening creden7 tials. 

8 ‘‘(9) COORDINATION WITH THE NCUA.—In car9 rying out this section, the Corporation shall consult 

10 and coordinate with the National Credit Union Ad11 ministration as needed to promote consistent imple12 mentation where appropriate. 

13 ‘‘(g) DEFINITIONS.—In this section: 

14 ‘‘(1) CONSENT APPLICATION.—The term ‘con15 sent application’ means an application filed with 

16 Corporation by an individual (or by an insured de17 pository institution or depository institution holding 

18 company on behalf of an individual) seeking the 

19 written consent of the Corporation under subsection 

20 (a)(1). 

21 ‘‘(2) CRIMINAL OFFENSE INVOLVING DISHON22 ESTY.—The term ‘criminal offense involving dishon23 esty’— 

24 ‘‘(A) means an offense under which an in25 dividual, directly or indirectly— 


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1 ‘‘(i) cheats or defrauds; or 

2 ‘‘(ii) wrongfully takes property belong3 ing to another in violation of a criminal 

4 statute; 

5 ‘‘(B) includes an offense that Federal, 

6 State, or local law defines as dishonest, or for 

7 which dishonesty is an element of the offense; 

8 and 

9 ‘‘(C) does not include— 

10 ‘‘(i) a misdemeanor criminal offense 

11 committed more than one year before the 

12 date on which an individual files a consent 

13 application, excluding any period of incar14 ceration; or 

15 ‘‘(ii) an offense involving the posses16 sion of controlled substances. 

17 ‘‘(3) PRETRIAL DIVERSION OR SIMILAR PRO18 GRAM.—The term ‘pretrial diversion or similar pro19 gram’ means a program characterized by a suspen20 sion or eventual dismissal or reversal of charges or 

21 criminal prosecution upon agreement by the accused 

22 to restitution, drug or alcohol rehabilitation, anger 

23 management, or community service.’’. 


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1 (b) FEDERAL CREDIT UNION ACT.—Section 205(d) 

2 of the Federal Credit Union Act (12 U.S.C. 1785(d)) is 

3 amended by adding at the end the following: 

4 ‘‘(4) EXCEPTIONS.— 

5 ‘‘(A) CERTAIN OLDER OFFENSES.— 

6 ‘‘(i) IN GENERAL.—With respect to an 

7 individual, paragraph (1) shall not apply to 

8 an offense if— 

9 ‘‘(I) it has been 7 years or more 

10 since the offense occurred; or 

11 ‘‘(II) the individual was incarcer12 ated with respect to the offense and it 

13 has been 5 years or more since the in14 dividual was released from incarcer15 ation. 

16 ‘‘(ii) OFFENSES COMMITTED BY INDI17 VIDUALS 21 OR YOUNGER.—For individuals 

18 who committed an offense when they were 

19 21 years of age or younger, paragraph (1) 

20 shall not apply to the offense if it has been 

21 more than 30 months since the sentencing 

22 occurred. 

23 ‘‘(iii) LIMITATION.—This subpara24 graph shall not apply to an offense de25 scribed under paragraph (1)(B). 


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1 ‘‘(B) EXPUNGEMENT AND SEALING.—With 

2 respect to an individual, paragraph (1) shall not 

3 apply to an offense if— 

4 ‘‘(i) there is an order of expungement, 

5 sealing, or dismissal that has been issued 

6 in regard to the conviction in connection 

7 with such offense; and 

8 ‘‘(ii) it is intended by the language in 

9 the order itself, or in the legislative provi10 sions under which the order was issued, 

11 that the conviction shall be destroyed or 

12 sealed from the individual’s State or Fed13 eral record, even if exceptions allow the 

14 record to be considered for certain char15 acter and fitness evaluation purposes. 

16 ‘‘(C) DE MINIMIS EXEMPTION.— 

17 ‘‘(i) IN GENERAL.—Paragraph (1) 

18 shall not apply to such de minimis offenses 

19 as the Board determines, by rule. 

20 ‘‘(ii) CONFINEMENT CRITERIA.—In 

21 issuing rules under clause (i), the Board 

22 shall include a requirement that the of23 fense was punishable by a term of three 

24 years or less confined in a correctional fa25 cility, where such confinement— 


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1 ‘‘(I) is calculated based on the 

2 time an individual spent incarcerated 

3 as a punishment or a sanction, not as 

4 pretrial detention; and 

5 ‘‘(II) does not include probation 

6 or parole where an individual was re7 stricted to a particular jurisdiction or 

8 was required to report occasionally to 

9 an individual or a specific location. 

10 ‘‘(iii) BAD CHECK CRITERIA.—In set11 ting the criteria for de minimis offenses 

12 under clause (i), if the Board establishes 

13 criteria with respect to insufficient funds 

14 checks, the Board shall require that the 

15 aggregate total face value of all insufficient 

16 funds checks across all convictions or pro17 gram entries related to insufficient funds 

18 checks is $2,000 or less. 

19 ‘‘(iv) DESIGNATED LESSER OF20 FENSES.—Paragraph (1) shall not apply to 

21 certain lesser offenses (including the use of 

22 a fake ID, shoplifting, trespass, fare eva23 sion, driving with an expired license or tag, 

24 and such other low-risk offenses as the 

25 Board may designate) if 1 year or more 


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1 has passed since the applicable conviction 

2 or program entry. 

3 ‘‘(5) CONSENT APPLICATIONS.— 

4 ‘‘(A) IN GENERAL.—The Board shall ac5 cept consent applications from an individual 

6 and from an insured credit union on behalf of 

7 an individual that are filed separately or con8 temporaneously with a regional office of the 

9 Board. 

10 ‘‘(B) SPONSORED APPLICATIONS FILED

11 WITH REGIONAL OFFICES.—Consent applica12 tions filed at a regional office of the Board by 

13 an insured credit union on behalf of an indi14 vidual— 

15 ‘‘(i) shall be reviewed by such office; 

16 ‘‘(ii) may be approved or denied by 

17 such office, if such authority has been dele18 gated to such office by the Board; and 

19 ‘‘(iii) may only be denied by such of20 fice if the general counsel of the Board (or 

21 a designee) certifies that the denial is con22 sistent with this section. 

23 ‘‘(C) INDIVIDUAL APPLICATIONS FILED

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1 tions filed at a regional office by an indi2 vidual— 

3 ‘‘(i) shall be reviewed by such office; 

4 and 

5 ‘‘(ii) may be approved or denied by 

6 such office, if such authority has been dele7 gated to such office by the Board, except 

8 with respect to— 

9 ‘‘(I) cases involving an offense 

10 described under paragraph (1)(B); 

11 and 

12 ‘‘(II) such other high-level secu13 rity cases as may be designated by the 

14 Board. 

15 ‘‘(D) NATIONAL OFFICE REVIEW.—The 

16 national office of the Board shall— 

17 ‘‘(i) review any consent application 

18 with respect to which a regional office is 

19 not authorized to approve or deny the ap20 plication; and 

21 ‘‘(ii) review any consent application 

22 that is denied by a regional office, if the 

23 individual requests a review by the national 

24 office. 

25 ‘‘(E) FORMS AND INSTRUCTIONS.— 


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1 ‘‘(i) AVAILABILITY.—The Board shall 

2 make all forms and instructions related to 

3 consent applications available to the public, 

4 including on the website of the Board. 

5 ‘‘(ii) CONTENTS.—The forms and in6 structions described under clause (i) shall 

7 provide a sample cover letter and a com8 prehensive list of items that may accom9 pany the application, including clear guid10 ance on evidence that may support a find11 ing of rehabilitation. 

12 ‘‘(F) CONSIDERATION OF CRIMINAL HIS13 TORY.— 

14 ‘‘(i) REGIONAL OFFICE CONSIDER15 ATION.—In reviewing a consent applica16 tion, a regional office shall— 

17 ‘‘(I) primarily rely on the crimi18 nal history record of the Federal Bu19 reau of Investigation; and 

20 ‘‘(II) provide such record to the 

21 applicant to review for accuracy. 

22 ‘‘(ii) CERTIFIED COPIES.—The Board 

23 may not require an applicant to provide 

24 certified copies of criminal history records 

25 unless the Board determines that there is 


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•S 4591 IS

1 a clear and compelling justification to re2 quire additional information to verify the 

3 accuracy of the criminal history record of 

4 the Federal Bureau of Investigation. 

5 ‘‘(G) CONSIDERATION OF REHABILITA6 TION.—Consistent with title VII of the Civil 

7 Rights Act of 1964 (42 U.S.C. 2000e et seq.), 

8 the Board shall— 

9 ‘‘(i) conduct an individualized assess10 ment when evaluating consent applications 

11 that takes into account evidence of reha12 bilitation, the applicant’s age at the time 

13 of the conviction or program entry, the 

14 time that has elapsed since conviction or 

15 program entry, and the relationship of in16 dividual’s offense to the responsibilities of 

17 the applicable position; 

18 ‘‘(ii) consider the individual’s employ19 ment history, letters of recommendation, 

20 certificates documenting participation in 

21 substance abuse programs, successful par22 ticipating in job preparation and edu23 cational programs, and other relevant miti24 gating evidence; and 


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1 ‘‘(iii) consider any additional informa2 tion the Board determines necessary for 

3 safety and soundness. 

4 ‘‘(H) SCOPE OF EMPLOYMENT.—With re5 spect to an approved consent application filed 

6 by an insured credit union on behalf of an indi7 vidual, if the Board determines it appropriate, 

8 such approved consent application shall allow 

9 the individual to work for the same employer 

10 (without restrictions on the location) and across 

11 positions, except that the prior consent of the 

12 Board (which may require a new application) 

13 shall be required for any proposed significant 

14 changes in the individual’s security-related du15 ties or responsibilities, such as promotion to an 

16 officer or other positions that the employer de17 termines will require higher security screening 

18 credentials. 

19 ‘‘(I) COORDINATION WITH FDIC.—In car20 rying out this subsection, the Board shall con21 sult and coordinate with the Federal Deposit 

22 Insurance Corporation as needed to promote 

23 consistent implementation where appropriate. 

24 ‘‘(6) DEFINITIONS.—In this subsection: 


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•S 4591 IS

1 ‘‘(A) CONSENT APPLICATION.—The term 

2 ‘consent application’ means an application filed 

3 with Board by an individual (or by an insured 

4 credit union on behalf of an individual) seeking 

5 the written consent of the Board under para6 graph (1)(A). 

7 ‘‘(B) CRIMINAL OFFENSE INVOLVING DIS8 HONESTY.—The term ‘criminal offense involv9 ing dishonesty’— 

10 ‘‘(i) means an offense under which an 

11 individual, directly or indirectly— 

12 ‘‘(I) cheats or defrauds; or 

13 ‘‘(II) wrongfully takes property 

14 belonging to another in violation of a 

15 criminal statute; 

16 ‘‘(ii) includes an offense that Federal, 

17 State, or local law defines as dishonest, or 

18 for which dishonesty is an element of the 

19 offense; and 

20 ‘‘(iii) does not include— 

21 ‘‘(I) a misdemeanor criminal of22 fense committed more than one year 

23 before the date on which an individual 

24 files a consent application, excluding 

25 any period of incarceration; or 


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•S 4591 IS

1 ‘‘(II) an offense involving the 

2 possession of controlled substances. 

3 ‘‘(C) PRETRIAL DIVERSION OR SIMILAR

4 PROGRAM.—The term ‘pretrial diversion or 

5 similar program’ means a program character6 ized by a suspension or eventual dismissal or 

7 reversal of charges or criminal prosecution upon 

8 agreement by the accused to restitution, drug 

9 or alcohol rehabilitation, anger management, or 

10 community service.’’. 

11 (c) REVIEW AND REPORT TO CONGRESS.—Not later 

12 than the end of the 2-year period beginning on the date 

13 of enactment of this Act, the Federal Deposit Insurance 

14 Corporation and the National Credit Union Administra15 tion shall— 

16 (1) review the rules issued to carry out this sec17 tion and the amendments made by this section on— 

18 (A) the application of section 19 of the 

19 Federal Deposit Insurance Act (12 U.S.C. 

20 1829) and section 205(d) of the Federal Credit 

21 Union Act (12 U.S.C. 1785(d)); 

22 (B) the number of applications for consent 

23 applications under such sections; and 

24 (C) the rates of approval and denial for 

25 consent applications under such sections; 


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•S 4591 IS

1 (2) make the results of the review required 

2 under paragraph (1) available to the public; and 

3 (3) issue a report to Congress containing any 

4 legislative or regulatory recommendations for ex5 panding employment opportunities for those with a 

6 previous minor criminal offense. 

7 SEC. 706. FAIR ACCESS TO FINANCIAL SERVICES. 

8 (a) IN GENERAL.—All persons shall be entitled to the 

9 full and equal enjoyment of the goods, services, facilities, 

10 privileges, and accommodations of any financial institu11 tion, as defined in section 803 of the Payment, Clearing, 

12 and Settlement Supervision Act of 2010 (12 U.S.C. 5462), 

13 without discrimination on the ground of race, color, reli14 gion, national origin, and sex (including sexual orientation 

15 and gender identity). 

16 (b) PRIVATE RIGHT OF ACTION.— 

17 (1) IN GENERAL.—Whenever any person has 

18 engaged or there are reasonable grounds to believe 

19 that any person is about to engage in any act or 

20 practice prohibited by subsection (a), a civil action 

21 for preventive relief, including an application for a 

22 permanent or temporary injunction, restraining 

23 order, or other order, may be instituted by the per24 son aggrieved. 


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•S 4591 IS

1 (2) COSTS.—In any action commenced pursu2 ant to this section, the court, in its discretion, may 

3 allow the prevailing party, other than the United 

4 States, a reasonable attorney’s fee as part of the 

5 costs, and the United States shall be liable for costs 

6 the same as a private person. 

7 (3) JURISDICTION.—The district courts of the 

8 United States shall have jurisdiction of proceedings 

9 instituted pursuant to this section and shall exercise 

10 the same without regard to whether the aggrieved 

11 party shall have exhausted any administrative or 

12 other remedies that may be provided by law. 

13 (4) EXCLUSIVE MEANS.—The remedies pro14 vided in this subsection shall be the exclusive means 

15 of enforcing the rights based on this section, but 

16 nothing in this section shall preclude any individual 

17 or any State or local agency from asserting any 

18 right based on any other Federal or State law not 

19 inconsistent with this section, including any statute 

20 or ordinance requiring nondiscrimination in goods, 

21 services, facilities, privileges, and accommodations of 

22 any financial institution, or from pursuing any rem23 edy, civil or criminal, which may be available for the 

24 vindication or enforcement of such right. 


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•S 4591 IS

1 SEC. 707. CONSUMER PROTECTIONS FOR INDIVIDUALS 

2 WITH NONVIOLENT CRIMINAL RECORD. 

3 No institution may deny financial services to an ap4 plicant solely based on a prior conviction for a nonviolent 

5 cannabis offense. 

6 TITLE VIII—MISCELLANEOUS 

7 SEC. 801. COMPTROLLER GENERAL REVIEW OF LAWS AND 

8 REGULATIONS. 

9 (a) IN GENERAL.—The Comptroller General shall 

10 conduct a review of Federal laws, regulations, and policies 

11 to— 

12 (1) determine if any changes in them are desir13 able in the light of the purposes and provisions of 

14 this Act; 

15 (2) identify any use of the terms ‘‘marijuana’’ 

16 or ‘‘marihuana’’ in the rulings, regulations, or inter17 pretations of various administrative bureaus and 

18 agencies of the United States and recommend that 

19 such terms be replaced with the term ‘‘cannabis’’; 

20 and 

21 (3) identify any use of the terms ‘‘marijuana’’ 

22 or ‘‘marihuana’’ in the statutes of the United States 

23 and propose any amendments necessary to such 

24 statutes to replace such terms with the term ‘‘can25 nabis’’. 


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•S 4591 IS

1 (b) REPORT.—Not later than 2 years after the date 

2 of the enactment of this Act, the Comptroller General shall 

3 make to Congress and the relevant agencies such rec4 ommendations relating to the results of the review de5 scribed in subsection (a) as the Comptroller General 

6 deems appropriate. 

7 SEC. 802. CANNABIS PRODUCTS ADVISORY COMMITTEE. 

8 (a) ESTABLISHMENT.— 

9 (1) IN GENERAL.—There is established the 

10 Cannabis Products Advisory Committee (in this sec11 tion referred to as the ‘‘Committee’’). 

12 (2) PURPOSE.—The Committee shall advise any 

13 relevant Federal regulatory body, agency, or bureau 

14 regarding the administration of this Act (including 

15 any amendments made by this Act). 

16 (b) MEMBERSHIP.— 

17 (1) APPOINTMENTS.— 

18 (A) IN GENERAL.—The Committee shall be 

19 composed of 22 members who are appointed by 

20 the Secretary of Health and Human Services 

21 (in this section referred to as the ‘‘Secretary’’). 

22 (B) DATE.—The Secretary shall make the 

23 appointments described in subparagraph (A) 

24 not later than 60 days after the date of enact25 ment of this section. 


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•S 4591 IS

1 (2) TERM OF SERVICE.— 

2 (A) IN GENERAL.—Each member of the 

3 Committee shall serve a term of 5 years from 

4 the date of appointment by the Secretary. No 

5 member may be removed prior to the expiration 

6 of his or her term without a showing of good 

7 cause. 

8 (B) REAPPOINTMENT.—A member may be 

9 reappointed but may not serve more than 2 

10 terms. 

11 (C) VACANCIES.— 

12 (i) IN GENERAL.—Any vacancy in the 

13 Committee shall be filled by the Secretary 

14 not later than 90 days after the vacancy. 

15 (ii) TERM.—A member appointed to 

16 fill a vacancy in the Committee shall serve 

17 as a member of the Committee for the re18 mainder of the original term of appoint19 ment. 

20 (3) MEMBERSHIP COMPOSITION.—The Com21 mittee shall be composed of the following members: 

22 (A) INDUSTRY STAKEHOLDERS.—Three 

23 representatives from the cannabis industry, not 

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•S 4591 IS

1 munity or an individual adversely impacted by 

2 the War on Drugs (as defined in section 301 of 

3 this Act), including— 

4 (i) 2 individuals who represent the 

5 viewpoint of cannabis cultivators and proc6 essors; and 

7 (ii) 1 individual who represents the 

8 viewpoint of cannabis wholesalers and re9 tailers. 

10 (B) EQUITY AND SOCIAL JUSTICE ADVO11 CATE.—One individual with experience in equity 

12 and social justice advocacy with respect to the 

13 cannabis industry and criminal justice. 

14 (C) STATE CANNABIS REGULATOR.—One 

15 individual who represents the viewpoint of State 

16 cannabis regulators. 

17 (D) CONSUMERS AND PATIENTS.—One in18 dividual who represents the viewpoint of can19 nabis consumers and patients. 

20 (E) PUBLIC HEALTH, MEDICINE, OR

21 SCIENCE.—Four individuals who are technically 

22 qualified by training and experience in public 

23 health, medicine, or other sciences, including— 

24 (i) 2 individuals with domestic or 

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1 ence, 1 of whom shall also have experience 

2 treating patients using medical cannabis; 

3 and 

4 (ii) 2 individuals with experience in 

5 substance use and misuse prevention, 

6 intervention, and treatment, 1 of whom 

7 shall have such experience pertaining to in8 dividuals under 21 years of age. 

9 (F) PUBLIC SAFETY.—One individual with 

10 experience in public safety with respect to can11 nabis and the cannabis industry. 

12 (G) OFFICE OF NATIONAL DRUG CONTROL

13 POLICY.—One representative from the Office of 

14 National Drug Control Policy. 

15 (H) DEPARTMENT OF VETERANS AF16 FAIRS.—One representative from the Depart17 ment of Veterans Affairs. 

18 (I) ALCOHOL, TOBACCO, AND CANNABIS

19 TAX AND TRADE BUREAU.—One representative 

20 from the Alcohol, Tobacco, and Cannabis Tax 

21 and Trade Bureau. 

22 (J) NATIONAL GOVERNORS ASSOCIA23 TION.—One representative from the National 

24 Governors Association. 


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1 (K) DEPARTMENT OF TRANSPORTATION.— 

2 One representative from the Department of 

3 Transportation. 

4 (L) DEPARTMENT OF HEALTH AND

5 HUMAN SERVICES.—Four representatives from 

6 the Department of Health and Human Services, 

7 including from the Food and Drug Administra8 tion, the Centers for Disease Control and Pre9 vention, the National Institutes of Health, and 

10 the Substance Abuse and Mental Health Serv11 ices Administration. 

12 (M) LABOR UNIONS.—One labor union 

13 representative. 

14 (N) INDIAN TRIBE.—One representative 

15 from an Indian Tribe. 

16 (4) ADMINISTRATIVE SUPPORT.—The Secretary 

17 shall furnish the Committee clerical and other assist18 ance to enable the Committee to perform its duties. 

19 (5) COMPENSATION.— 

20 (A) COMPENSATION OF MEMBERS.—A 

21 member of the Committee who is not an officer 

22 or employee of the Federal Government shall be 

23 compensated at a rate fixed by the Secretary, 

24 which may not exceed the daily equivalent of 

25 the rate in effect under the Senior Executive 


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1 Schedule under section 5382 of title 5, United 

2 States Code, for each day (including travel 

3 time) during which the member is engaged in 

4 the performance of the duties of the Committee. 

5 (B) TRAVEL EXPENSES.—While away from 

6 their home or regular place of business in the 

7 performance of services for the Committee, a 

8 member of the Committee shall be allowed trav9 el expenses, including per diem in lieu of sub10 sistence, at rates authorized by section 5703 of 

11 title 5, United States Code, for persons in Gov12 ernment service employed intermittently. 

13 (6) CHAIR.—The Committee shall select a 

14 Chair from among the members of the Committee. 

15 (7) SUBCOMMITTEES.—The Committee may es16 tablish subcommittees to facilitate the ability of the 

17 Committee to discharge its duties (as described in 

18 subsection (c)). 

19 (c) DUTIES.—The Committee shall— 

20 (1) consider all matters submitted to it by the 

21 Secretary; 

22 (2) on its own initiative, recommend to the Sec23 retary guidelines, rules, and regulations and any 

24 changes to guidelines, rules, and regulations that the 

25 Committee considers important or necessary for the 


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1 Secretary’s review and consideration, with a focus on 

2 ensuring equity and social justice in such guidelines, 

3 rules, and regulations; 

4 (3) consider the safety of introducing new can5 nabis products into the market; 

6 (4) review and recommend public health surveil7 lance activities to monitor population-level health ef8 fects with respect to cannabis; 

9 (5) identify and prioritize gaps in the science 

10 important to public health and medicine with respect 

11 to cannabis; 

12 (6) make recommendations to the Secretary of 

13 the Treasury regarding approval of waivers of dis14 qualifying offenses with respect to permit applica15 tions under section 302(a)(2)(B) of the Federal Al16 cohol Administration Act (27 U.S.C. 201 et seq.) (as 

17 added by section 511); and 

18 (7) not later than 1 year after the date of en19 actment of this section, and annually thereafter, 

20 publish a publicly available report describing the ac21 tivities of the Committee, including any rec22 ommendations the Committee made to the Secretary 

23 during the reporting period and whether such rec24 ommendations were implemented. 

25 (d) MEETINGS.— 


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1 (1) FREQUENCY.— 

2 (A) IN GENERAL.—The Committee shall 

3 meet on a quarterly basis but may meet more 

4 frequently if necessary. 

5 (B) CANCELLATION.— 

6 (i) IN GENERAL.—Subject to clause 

7 (ii), the Chair may cancel a Committee 

8 meeting not less than 3 business days prior 

9 to such meeting if, in consultation with the 

10 members of the Committee, the Chair de11 termines— 

12 (I) the meeting is not needed; or 

13 (II) there will not be a quorum 

14 present at such meeting. 

15 (ii) EXCEPTIONS.—Any meeting may 

16 be canceled by the Chair at any time due 

17 to inclement weather or an emergency situ18 ation. 

19 (2) VOTING.— 

20 (A) QUORUM.— 

21 (i) IN GENERAL.—A majority of the 

22 members of the Committee shall constitute 

23 a quorum. 


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1 (ii) REQUIREMENT.—A quorum of 

2 members shall be required for any decision 

3 of the Committee. 

4 (iii) EFFECT OF NO QUORUM.—In the 

5 absence of such a quorum, any business 

6 transacted by the Committee shall be null 

7 and void, except any measure taken to ob8 tain a quorum or to reschedule another 

9 meeting. 

10 (B) MAJORITY VOTE.—Any decision by or 

11 recommendation to the Secretary of the Treas12 ury or the Secretary of Health and Human 

13 Services from the Committee shall be adopted 

14 by a majority vote of the Committee. 

15 (C) CONSENSUS; VOTE RECORDING.— 

16 (i) IN GENERAL.—Decision-making by 

17 the Committee shall be by consensus when 

18 possible. 

19 (ii) NO CONSENSUS.— 

20 (I) VOTE.—If consensus cannot 

21 be reached by the Committee, a vote 

22 of the members of the Committee will 

23 be taken. 

24 (II) QUORUM REQUIRED.—To 

25 take a vote under subclause (I), a 


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1 quorum of the members shall be 

2 present. 

3 (III) RECORDING.—The results 

4 of any vote taken under subclause (I) 

5 shall be recorded, as well as any state6 ment of concurrence or disagreement, 

7 if applicable. 

8 (3) TELECONFERENCE.—A member may fully 

9 participate in a meeting via teleconference. 

10 (4) CONFIDENTIALITY.— 

11 (A) IN GENERAL.—Any discussion of the 

12 Committee relative to the work of the Com13 mittee is regarded as confidential information 

14 and may not be discussed in any form outside 

15 the context of the Committee meetings. 

16 (B) WAIVER REQUESTS.—Any materials 

17 submitted to the Committee under section 

18 302(a)(2)(B) of the Federal Alcohol Adminis19 tration Act (27 U.S.C. 201 et seq.) (as added 

20 by section 511), and any transcript made with 

21 respect to such submission regarding any par22 ticular person, shall be redacted. 

23 (5) NON-APPLICATION OF FACA.—Section 10 of 

24 the Federal Advisory Committee Act (5 U.S.C. 

25 App.) shall not apply to any part of a meeting held 


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1 by the Committee with respect to a waiver request 

2 submitted to the Committee under section 

3 302(a)(2)(B) of the Federal Alcohol Administration 

4 Act (27 U.S.C. 201 et seq.) (as added by section 

5 511). 

6 (e) STATEMENTS OF POLICY.—A member of the 

7 Committee may not make a statement of policy that pur8 ports to be that of the Committee unless the Committee 

9 has adopted such a policy, except that any such member 

10 shall not be prohibited from stating his or her personal 

11 opinion, provided the opinion is clearly identified as such. 

12 (f) TERMINATION.—Section 14 of the Federal Advi13 sory Committee Act (5 U.S.C. App.) shall not apply to 

14 the Committee. 

15 SEC. 803. DEFINITION OF HEMP UNDER USDA DOMESTIC 

16 HEMP PRODUCTION PROGRAM. 

17 Section 297A(1) of the Agricultural Marketing Act 

18 of 1946 (7 U.S.C. 1639o(1)) is amended— 

19 (1) by striking ‘‘The term’’ and inserting the 

20 following: 

21 ‘‘(A) IN GENERAL.—The term’’; and 

22 (2) in subparagraph (A) (as so designated), by 

23 striking ‘‘with a delta-9 tetrahydrocannabinol con24 centration of not more than 0.3 percent on a dry 

25 weight basis.’’ and inserting the following: ‘‘and any 


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1 products made or derived from such plant or parts, 

2 with a total tetrahydrocannabinol equivalent con3 centration of not more than the allowable 

4 tetrahydrocannabinol equivalent amount described in 

5 subparagraph (C). 

6 ‘‘(B) TOTAL TETRAHYDROCANNABINOL

7 EQUIVALENT.— 

8 ‘‘(i) IN GENERAL.—Subject to clause 

9 (ii), in subparagraph (A), the term ‘total 

10 tetrahydrocannabinol equivalent’ means— 

11 ‘‘(I) any tetrahydrocannabinol, 

12 including— 

13 ‘‘(aa) delta-8 

14 tetrahydrocannabinol; 

15 ‘‘(bb) delta-9 

16 tetrahydrocannabinol; 

17 ‘‘(cc) delta-10 

18 tetrahydrocannabinol; and 

19 ‘‘(dd) tetrahydrocannabinolic 

20 acid; and 

21 ‘‘(II) any other substance de22 scribed in paragraph (ss)(1)(A) of sec23 tion 201 of the Federal Food, Drug, 

24 and Cosmetic Act (21 U.S.C. 321) 

25 that has similar effects on the body as 


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1 a substance described in item (aa), 

2 (bb), or (cc) of subclause (I), includ3 ing through interaction with other 

4 substances in the applicable product. 

5 ‘‘(ii) EXCLUSION OF ISOMERS.—The 

6 Secretary of Health and Human Services, 

7 in consultation with the Secretary of the 

8 Treasury and the Attorney General, may 

9 exclude 1 or more isomers of 

10 tetrahydrocannabinol from the definition 

11 under clause (i). 

12 ‘‘(C) ALLOWABLE

13 TETRAHYDROCANNABINOL EQUIVALENT

14 AMOUNT.— 

15 ‘‘(i) IN GENERAL.—Subject to clause 

16 (ii), the allowable tetrahydrocannabinol 

17 equivalent amount referred to in subpara18 graph (A) is— 

19 ‘‘(I) except as provided in sub20 clause (II), 1 milligram of total 

21 tetrahydrocannabinol per 100 grams 

22 on a dry weight basis (or a propor23 tionate amount of any fraction there24 of); and 


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1 ‘‘(II) in the case of any specified 

2 plant product described in clause (iii), 

3 0.7 percent total tetrahydrocannabinol 

4 equivalent on a dry weight basis. 

5 ‘‘(ii) MODIFICATION; DETERMINATION

6 WITH RESPECT TO

7 TETRAHYDROCANNABINOLIC ACID.—For 

8 purposes of clause (i), under regulations 

9 promulgated by the Secretary of Health 

10 and Human Services, in consultation with 

11 the Secretary of the Treasury and the At12 torney General— 

13 ‘‘(I) the Secretary may modify 

14 the allowable tetrahydrocannabinol 

15 equivalent amounts described in 

16 clause (i) if the Secretary determines 

17 that the effects on the body of such 

18 substance or interaction of substances 

19 differ significantly from the effects on 

20 the body of delta-9 

21 tetrahydrocannabinol; and 

22 ‘‘(II) rules similar to the rules re23 lating to the determination of ‘Total 

24 THC’ in section 990.1 of title 7, Code 

25 of Federal Regulations (as in effect on 


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1 the date of enactment of the Cannabis 

2 Administration and Opportunity Act), 

3 shall apply in calculating the ratio of 

4 tetrahydrocannabinolic acid described 

5 in subparagraph (B)(i)(I)(dd) taken 

6 into account for purposes of deter7 mining the allowable 

8 tetrahydrocannabinol equivalent 

9 amount. 

10 ‘‘(iii) SPECIFIED PLANT PRODUCT.—A 

11 specified plant product referred to in 

12 clause (i)(II) is any item described in para13 graph (ss)(1)(A) of section 201 of the Fed14 eral Food, Drug, and Cosmetic Act (21 

15 U.S.C. 321) that does not contain any 

16 item described in that paragraph that has 

17 been processed, extracted, or concentrated 

18 (other than harvesting, drying, curing, or 

19 trimming).’’. 

20 SEC. 804. GRANTS FOR HIRING AND TRAINING RELATING 

21 TO CANNABIS ENFORCEMENT. 

22 (a) AMENDMENT.—Section 1701 of title I of the Om23 nibus Crime Control and Safe Streets Act of 1968 (34 

24 U.S.C. 10381) is amended— 


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1 (1) by redesignating subsection (m) as sub2 section (o); and 

3 (2) by inserting after subsection (l) the fol4 lowing: 

5 ‘‘(m) COPS GRANTS FOR SMALL DEPARTMENTS TO

6 COMBAT ILLICIT CANNABIS PRODUCTION AND DISTRIBU7 TION.— 

8 ‘‘(1) ELIGIBLE ENTITY DEFINED.—In this sub9 section, the term ‘eligible entity’ means a law en10 forcement agency that— 

11 ‘‘(A) has not more than 50 sworn law en12 forcement officers; 

13 ‘‘(B) serves not more than 50,000 resi14 dents; and 

15 ‘‘(C) demonstrates a need for additional 

16 personnel to combat illicit cannabis production 

17 and distribution. 

18 ‘‘(2) GRANTS.—The Attorney General shall 

19 award competitive grants to eligible entities for hir20 ing— 

21 ‘‘(A) sworn law enforcement officers; 

22 ‘‘(B) non-sworn law enforcement officers; 

23 ‘‘(C) investigators; and 

24 ‘‘(D) community outreach specialists. 


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1 ‘‘(n) CANNABIS LAW EDUCATION PROGRAMS AND

2 TECHNICAL ASSISTANCE.— 

3 ‘‘(1) PROGRAM DEVELOPMENT.—The Attorney 

4 General shall develop Federal education programs 

5 and technical assistance for State and local law en6 forcement agencies to develop the knowledge and ex7 pertise necessary to ensure— 

8 ‘‘(A) the enforcement of State and Federal 

9 cannabis laws; and 

10 ‘‘(B) that the enforcement described in 

11 subparagraph (A) is consistent with the Con12 stitution of the United States. 

13 ‘‘(2) STATE-SPECIFIC TRAINING AND GUID14 ANCE.—The Director of the Bureau of Justice As15 sistance shall develop State-specific training and 

16 guidance for law enforcement agencies within a ju17 risdiction for use in the Federal education programs 

18 described in paragraph (1). 

19 ‘‘(3) GRANTS.—The Attorney General shall 

20 award grants to law enforcement agencies for the 

21 costs associated with training under this sub22 section.’’. 

23 (b) APPROPRIATIONS.—In addition to amounts other24 wise available, there is appropriated, out of any funds in 

25 the Treasury not otherwise appropriated, $15,000,000 for 


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1 each of fiscal years 2023 through 2027 to carry out this 

2 section. 

3 SEC. 805. SEVERABILITY. 

4 If any provision of this Act or an amendment made 

5 by this Act, or any application of such provision to any 

6 person or circumstance, is held to be unconstitutional, the 

7 remainder of this Act, the amendments made by this Act, 

8 and the application of this Act and the amendments made 

9 by this Act to any other person or circumstance shall not 

10 be affected. 

Æ 


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