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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 780 Introduced in Senate (IS)]

<DOC>

115th CONGRESS
  1st Session
                                 S. 780

   To amend the Controlled Substances Act to reduce the gap between 
      Federal and State marijuana policy, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 30, 2017

   Mr. Wyden introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
   To amend the Controlled Substances Act to reduce the gap between 
      Federal and State marijuana policy, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Responsibly Addressing the Marijuana 
Policy Gap Act of 2017''.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the term ``depository institution'' means--
                    (A) a depository institution as defined in section 
                3(c) of the Federal Deposit Insurance Act (12 U.S.C. 
                1813(c));
                    (B) a Federal credit union as defined in section 
                101 of the Federal Credit Union Act (12 U.S.C. 1752); 
                or
                    (C) a State credit union as defined in section 101 
                of the Federal Credit Union Act (12 U.S.C. 1752);
            (2) the term ``Indian country'' has the meaning given the 
        term in section 1151 of title 18, United States Code;
            (3) the term ``Indian tribe'' has the meaning given the 
        term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 5304);
            (4) the term ``marijuana'' has the meaning given the term 
        in section 102 of the Controlled Substances Act (21 U.S.C. 
        802), as amended by subsection (d)(2);
            (5) the term ``marijuana derivative'' means any marijuana 
        product that is not a naturally grown and unadulterated 
        marijuana flower product;
            (6) the term ``marijuana product'' means any article that 
        contains marijuana or any marijuana derivative;
            (7) the term ``marijuana-related business'' means a 
        manufacturer, producer, or any person that--
                    (A) participates in any business or organized 
                activity that involves handling marijuana or marijuana 
                products, including selling, transporting, displaying, 
                dispensing, or distributing marijuana or marijuana 
                products; and
                    (B) engages in such activity pursuant to a law 
                established by a State, a unit of local government, or 
                an Indian tribe that has jurisdiction over the Indian 
                country in which the activity occurs; and
            (8) the term ``State'' means each of the several States, 
        the District of Columbia, Puerto Rico, and any territory or 
        possession of the United States.

                TITLE I--FEDERALISM IN MARIJUANA POLICY

SEC. 101. ELIMINATION OF CRIMINAL PENALTIES FOR CERTAIN PERSONS 
              COMPLYING WITH STATE LAW.

    Section 708 of the Controlled Substances Act (21 U.S.C. 903) is 
amended--
            (1) by striking ``No provision'' and inserting the 
        following:
    ``(a) In General.--Except as provided in subsection (b), no 
provision''; and
            (2) by adding at the end the following:
    ``(b) Compliance With State Law.--Notwithstanding any other 
provision of law, the provisions of this title relating to marihuana 
shall not apply to any person acting in compliance with State law or 
the law of the Indian tribe that has jurisdiction over the Indian 
country, as defined in section 1151 of title 18, United States Code, 
where the conduct occurs relating to--
            ``(1) the production, possession, distribution, 
        dispensation, administration, laboratory testing, or delivery 
        of marihuana; or
            ``(2) the provision of ancillary services related to the 
        activities described in paragraph (1), such as legal 
        representation, payment processing, advertising, security 
        services, scientific and safety testing, or property 
        leasing.''.

            TITLE II--REMOVING BUSINESS AND BANKING BARRIERS

SEC. 201. ALLOWANCE OF DEDUCTIONS AND CREDITS RELATING TO EXPENDITURES 
              IN CONNECTION WITH MARIJUANA SALES CONDUCTED IN 
              COMPLIANCE WITH STATE LAW.

    (a) Short Title.--This section may be cited as the ``Small Business 
Tax Equity Act of 2017''.
    (b) Allowance.--Section 280E of the Internal Revenue Code of 1986 
is amended by inserting before the period at the end the following: ``, 
unless such trade or business consists of marijuana sales conducted in 
compliance with State law or the law of the Indian tribe, as defined in 
section 4 of the Indian Self-Determination and Education Assistance Act 
(25 U.S.C. 5304), that has jurisdiction over the Indian country, as 
defined in section 1151 of title 18, where the trade or business is 
conducted''.
    (c) Effective Date.--The amendment made by this section shall apply 
with respect to taxable years ending after the date of the enactment of 
this Act.

SEC. 202. MARIJUANA PRINT ADVERTISING.

    (a) Short Title.--This section may be cited as the ``Marijuana 
Advertising In Legal States Act'' or the ``MAILS Act''.
    (b) Marijuana Print Advertising.--Section 403(c)(1) of the 
Controlled Substances Act (21 U.S.C. 843(c)(1)) is amended by adding at 
the end the following: ``This paragraph does not apply to an 
advertisement to the extent that the advertisement relates to an 
activity, involving marihuana, that is in compliance with the law of 
the State or the law of the law of the Indian tribe, as defined in 
section 4 of the Indian Self-Determination and Education Assistance Act 
(25 U.S.C. 5304), that has jurisdiction over the Indian country, as 
defined in section 1151 of title 18, United States Code, in which that 
activity takes place.''.

SEC. 203. SAFE HARBOR FOR MARIJUANA BROADCAST ADVERTISING.

    (a) Communications Act of 1934.--Section 309 of the Communications 
Act of 1934 (47 U.S.C. 309) is amended by adding at the end the 
following:
    ``(m) Safe Harbor for Marijuana Broadcast Advertising.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `covered activity' means the 
                production, possession, sale, distribution, 
                dispensation, administration, processing, or laboratory 
                testing of marijuana;
                    ``(B) the term `Indian country' has the meaning 
                given the term in section 1151 of title 18, United 
                States Code;
                    ``(C) the term `Indian tribe' has the meaning given 
                the term in section 4 of the Indian Self-Determination 
                and Education Assistance Act (25 U.S.C. 5304);
                    ``(D) the term `marijuana' has the meaning given 
                the term in section 102 of the Controlled Substances 
                Act (21 U.S.C. 802); and
                    ``(E) the term `media of mass communications' has 
                the meaning given the term in subsection (i)(3)(C).
            ``(2) Safe harbor.--In determining whether to grant an 
        application for a license or permit (including for the renewal 
        of a license or permit) under this section, the Commission 
        shall not consider the broadcast by any medium of mass 
        communications of any advertising or other information 
        pertaining to any aspect of a covered activity to be contrary 
        to the public interest, convenience, and necessity, if the 
        covered activity, and the advertising thereof, does not violate 
        the law of--
                    ``(A) the State, or the Indian tribe that has 
                jurisdiction over the Indian country, in which the 
                transmission point of the subject medium of mass 
                communications is located; or
                    ``(B) with respect to a radio or television 
                station, the State, or the Indian tribe that has 
                jurisdiction over the Indian country, in which the 
                station's community of license is or is proposed to be 
                located.''.
    (b) Controlled Substances Act.--Section 708 of the Controlled 
Substances Act (21 U.S.C. 903), as amended by section 101, is amended--
            (1) in subsection (a), by striking ``subsection (b)'' and 
        inserting ``subsections (b) and (c)'';
            (2) in subsection (b), by striking ``Notwithstanding'' and 
        inserting ``Subject to subsection (c) and notwithstanding''; 
        and
            (3) by adding at the end the following:
    ``(c) Compliance With State or Tribal Law Relating to Marijuana 
Broadcast Advertising.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of law, the provisions of 
        this title relating to marijuana shall not apply to the 
        broadcast by any medium of mass communications of any 
        advertising or other information pertaining to any aspect of a 
        covered activity if the covered activity, and the advertising 
        thereof, does not violate the law of--
                    ``(A) the State, or the Indian tribe that has 
                jurisdiction over the Indian country, in which the 
                transmission point of the subject medium of mass 
                communications is located; or
                    ``(B) with respect to a radio or television 
                station, the State, or the Indian tribe that has 
                jurisdiction over the Indian country, in which the 
                station's community of license is located.
            ``(2) Broadcasts calculated to induce travel from non-legal 
        jurisdictions.--Paragraph (1) shall not apply to the broadcast 
        by any medium of mass communications of any advertising or 
        other information pertaining to any aspect of a covered 
        activity that is calculated to induce residents of a non-legal 
        jurisdiction to travel to another State or other area of Indian 
        country to purchase marijuana.
    ``(d) Definitions.--For purposes of this section--
            ``(1) the term `covered activity' means the production, 
        possession, sale, distribution, dispensation, administration, 
        processing, or laboratory testing of marijuana;
            ``(2) the term `Indian country' has the meaning given the 
        term in section 1151 of title 18, United States Code;
            ``(3) the term `Indian tribe' has the meaning given the 
        term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 5304);
            ``(4) the term `media of mass communications' has the 
        meaning given the term in section 309(i)(3)(C) of the 
        Communications Act of 1934 (47 U.S.C. 309(i)(3)(C)); and
            ``(5) the term `non-legal jurisdiction' means--
                    ``(A) a State in which the purchase of marijuana is 
                prohibited under State law; or
                    ``(B) Indian country in which the purchase of 
                marijuana is prohibited under the law of the Indian 
                tribe that has jurisdiction over the Indian country.''.

SEC. 204. ACCESS TO BANKING.

    (a) Definitions.--In this section--
            (1) the term ``Federal banking regulator'' means each of 
        the Board of Governors of the Federal Reserve System, the 
        Bureau of Consumer Financial Protection, the Federal Deposit 
        Insurance Corporation, the Office of the Comptroller of the 
        Currency, the National Credit Union Administration, or any 
        Federal agency or department that regulates banking or 
        financial services, as determined by the Secretary of the 
        Treasury;
            (2) the term ``financial service'' means a financial 
        product or service as defined in section 1002 of the Dodd-Frank 
        Wall Street Reform and Consumer Protection Act (12 U.S.C. 
        5481);
            (3) the term ``manufacturer'' means a person who 
        manufactures, compounds, converts, processes, prepares, or 
        packages marijuana or marijuana products;
            (4) the term ``producer'' means a person who plants, 
        cultivates, harvests, or in any way facilitates the natural 
        growth of marijuana.
    (b) Safe Harbor for Depository Institutions.--A Federal banking 
regulator may not--
            (1) terminate or limit the deposit insurance of a 
        depository institution under the Federal Deposit Insurance Act 
        (12 U.S.C. 1811 et seq.) or the Federal Credit Union Act (12 
        U.S.C. 1751 et seq.) solely because the depository institution 
        provides or has provided financial services to a marijuana-
        related business;
            (2) prohibit, penalize, or otherwise discourage a 
        depository institution from providing financial services to a 
        marijuana-related business;
            (3) recommend, incentivize, or encourage a depository 
        institution not to offer financial services to a person, or to 
        downgrade or cancel the financial services offered to a person 
        solely because--
                    (A) the person is a manufacturer or producer of 
                marijuana;
                    (B) the person is the owner, operator, or an 
                employee of a marijuana-related business;
                    (C) the person later becomes an owner, operator, or 
                employee of a marijuana-related business; or
                    (D) the depository institution was not aware that 
                the person is the owner, operator, or an employee of a 
                marijuana-related business; or
            (4) take any adverse or corrective supervisory action on a 
        loan to an owner, operator, or employee of--
                    (A) a marijuana-related business solely because the 
                owner, operator, or employee is an owner, operator, or 
                employee of a marijuana-related business; or
                    (B) real estate or equipment that is leased to a 
                marijuana-related business solely because the owner or 
                operator of the real estate or equipment leased the 
                real estate or equipment to a marijuana-related 
                business.
    (c) Prohibition on Denying Master Accounts to Depository 
Institutions Because of Marijuana-Related Funds.--Notwithstanding any 
other provision of law, the Board of Governors of the Federal Reserve 
System may not deny a master account to a depository institution solely 
on the basis that the depository institution accepts deposits of funds 
from marijuana-related businesses.
    (d) Protections Under Federal Law.--
            (1) Investigation and prosecution.--A depository 
        institution that provides financial services to a marijuana-
        related business, or the officers, directors, and employees of 
        that business, shall be immune from Federal criminal 
        prosecution or investigation for providing those services.
            (2) Federal criminal law.--A depository institution that 
        provides financial services to a marijuana-related business, or 
        the officers, directors, and employees of that business, shall 
        not be subject to a criminal penalty under any Federal law 
        solely for providing those services or for further investing 
        any income derived from such services.
            (3) Forfeiture.--A depository institution that has a legal 
        interest in the collateral for a loan made to an owner, 
        operator, or employee of a marijuana-related business, or to an 
        owner or operator of real estate or equipment that is leased to 
        a marijuana-related business, shall not be subject to criminal, 
        civil, or administrative forfeiture of that legal interest 
        pursuant to any Federal law for providing such loan.
    (e) Rule of Construction.--Nothing in this section requires a 
depository institution to provide financial services to a marijuana-
related business.

SEC. 205. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY REPORTS.

    (a) Definition.--In this section, the term ``deposit account 
records''--
            (1) means account ledgers, signature cards, certificates of 
        deposit, passbooks, corporate resolutions authorizing accounts 
        in the possession of the depository institution, and other 
        books and records of the depository institution, including 
        records maintained by computer, which relate to the depository 
        institution's deposit taking function; and
            (2) does not include account statements, deposit slips, 
        items deposited, or cancelled checks.
    (b) Suspicious Activity Reports.--
            (1) In general.--A depository institution or any director, 
        officer, employee, or agent of a depository institution shall 
        not be required to report a suspicious transaction as 
        prescribed by the guidance issued by the Financial Crimes 
        Enforcement Network titled ``BSA Expectations Regarding 
        Marijuana-Related Businesses'' (FIN-2014-G001; published on 
        February 14, 2014) or section 21.11(c)(4)(1) of title 12, Code 
        of Federal Regulations, if--
                    (A) the depository institution reasonably believes, 
                based on customer due diligence, that the marijuana-
                related businesses to which it is providing financial 
                services does not implicate one of the priorities 
                outlined in the document entitled ``Memorandum for All 
                United States Attorneys: Guidance Regarding Marijuana 
                Enforcement'' issued by James M. Cole on August 29, 
                2013, nor violate the laws of the State in which 
                marijuana-related business operates; and
                    (B) the deposit account records of the depository 
                institution--
                            (i) include--
                                    (I) identifying information of the 
                                account holder and related parties; and
                                    (II) addresses of the account 
                                holder and related parties; and
                            (ii) state that--
                                    (I) the account holder is engaged 
                                in a marijuana-related business; and
                                    (II) no additional suspicious 
                                activity has been identified.
            (2) Safe harbor.--A depository institution or any director, 
        officer, employee, or agent of a depository institution that 
        reports a suspicious transaction relating to a marijuana-
        related business shall be considered to have met the 
        requirements of the guidance described in paragraph (1).

SEC. 206. BANKRUPTCY PROTECTION.

    Notwithstanding any other provision of law, a marijuana-related 
business shall be entitled to--
            (1) relief under chapter 7, 11, or 13 of title 11, United 
        States Code; and
            (2) convert a case in accordance with section 706, 1112, or 
        1307 of title 11, United States Code, as applicable.

SEC. 207. TRIBAL MARIJUANA SOVEREIGNTY.

    (a) In General.--The fact that an Indian tribe, a member of an 
Indian tribe, or a tribal entity is producing, purchasing, or 
possession marijuana in compliance with the law of the Indian tribe 
that has jurisdiction over the Indian country, as defined in section 
1151 of title 18, United States Code, where the conduct occurs shall 
not be considered when--
            (1) allocating or distributing Federal funds or other 
        Federal benefits to the Indian tribe, a member of an Indian 
        tribe, or the tribal entity;
            (2) determining the eligibility of the Indian tribe or the 
        tribal entity for any contract, grant, or other agreement with 
        the United States, or the renewal or modification thereof, 
        where the legal production, purchase, or possession of 
        marijuana by the Indian tribe or a member of an Indian tribe 
        would otherwise disqualify the Indian tribe from eligibility;
            (3) evaluating the ongoing compliance of the Indian tribe 
        or the tribal entity with any contract, grant, or other 
        agreement with the United States where the legal production, 
        purchase, or possession of marijuana by the Indian tribe or a 
        member of an Indian tribe would otherwise result in the Indian 
        tribe or tribal entity being out of compliance; and
            (4) determining if the Indian tribe or a member of an 
        Indian tribe is eligible for Federal benefits for which the 
        Indian tribe or a member of an Indian tribe would otherwise be 
        eligible.
    (b) Clarification.--This subsection shall not prohibit 
consideration of income from the legal production, purchase, or 
possession of marijuana to the same extent that the other legal income 
would be considered when allocating or distributing Federal funds or 
determining eligibility for Federal benefits.
    (c) Definitions.--For purposes of this subsection:
            (1) Tribal entity.--The term ``tribal entity'' means--
                    (A) tribal organizations as defined in section 4(l) 
                of the Indian Self-Determination and Education 
                Assistance Act of 1975 (25 U.S.C. 5304(l));
                    (B) tribally designated housing entities as defined 
                in section 4(22) of the Native American Housing 
                Assistance and Self-Determination Act of 1996 (25 
                U.S.C. 4103(22)); or
                    (C) Indian-owned businesses and tribal enterprises 
                as defined in paragraphs (5) and (8) of section 3 of 
                the Native American Business Development, Trade 
                Promotion, and Tourism Act of 2000 (25 U.S.C. 4302).
            (2) Legally authorized.--The term ``legally authorized'' 
        means permitted under the laws of--
                    (A) the United States;
                    (B) the State where the lands held in fee by an 
                Indian tribe or held in trust by the United States for 
                the benefit on behalf of that Indian tribe are located; 
                or
                    (C) an Indian tribe.

                   TITLE III--INDIVIDUAL PROTECTIONS

SEC. 301. EXPUNGEMENT OF CRIMINAL RECORDS FOR CERTAIN MARIJUANA-RELATED 
              OFFENSES.

    (a) Short Title.--This section may be cited as the ``Clean Slate 
for Marijuana Offenses Act of 2017''.
    (b) Expungement.--Chapter 229 of title 18, United States Code, is 
amended by inserting after subchapter C the following:

                      ``SUBCHAPTER D--EXPUNGEMENT

``Sec.
``3631. Expungement of certain criminal records in limited 
                            circumstances.
``3632. Requirements for expungement.
``3633. Procedure for expungement.
``3634. Effect of expungement.
``3635. Disclosure of expunged records.
``Sec. 3631. Expungement of certain criminal records in limited 
              circumstances
    ``(a) In General.--Any individual convicted of a qualifying 
marijuana-related offense who fulfills the requirements of section 3632 
may, upon petition for expungement made in accordance with this 
subchapter, obtain an order granting expungement under this subchapter.
    ``(b) Definition of Qualifying Marijuana-Related Offense.--In this 
subchapter, the term `qualifying marijuana-related offense' means an 
offense against the United States in which the conduct constituting the 
offense--
            ``(1) was legal under the State law or the law of the 
        Indian tribe at the time of the offense; or
            ``(2) was the possession of marijuana in a quantity is not 
        greater than 1 ounce.
    ``(c) Definitions.--In this subchapter--
            ``(1) the term `Indian country' has the meaning given the 
        term in section 1151;
            ``(2) the term `Indian tribe' has the meaning given the 
        term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 5304); and
            ``(3) the term `State' includes the District of Columbia, 
        Puerto Rico, and any other territory or possession of the 
        United States.
``Sec. 3632. Requirements for expungement
    ``No individual shall be eligible for an order of expungement under 
this subchapter unless, before filing a petition under this subchapter, 
such individual fulfills all requirements of the sentence for the 
conviction for which expungement is sought, including completion of any 
term of imprisonment or period of probation, meeting all conditions of 
a supervised release, and paying all fines.
``Sec. 3633. Procedure for expungement
    ``(a) Petition.--An individual may file a petition for expungement 
of a conviction in the court in which the conviction was obtained. A 
copy of the petition shall be served by the court upon the United 
States Attorney for the judicial district of that court.
    ``(b) Opportunity for Government To Contest Petition.--Not later 
than 60 days after the date a copy of a petition is served on the 
Government under subsection (a), the Government may, if the Government 
determines the facts do not support the petition, inform the court and 
the petitioner that the Government opposes granting expungement. If the 
Government does so inform the court and the petitioner, the court shall 
allow the Government and the petitioner an opportunity to present 
evidence and argument relating to the petition.
    ``(c) Court-Ordered Expungement.--If, after the passage of the 60-
day period described in subsection (a) or earlier, if the Government 
informs the court it will not oppose granting expungement or if 
proceedings related to that opposition have been completed, the court 
determines the preponderance of the evidence before the court supports 
the granting of expungement under this subchapter, the court shall 
issue an order granting that expungement. If the court determines the 
petition is not supported by the preponderance of the evidence before 
the court, the court shall deny the petition.
``Sec. 3634. Effect of expungement
    ``(a) In General.--An order granting expungement under this 
subchapter restores the individual concerned, in the contemplation of 
the law, to the status that individual occupied before the arrest or 
the institution of criminal proceedings for the offense for which 
expungement is granted.
    ``(b) No Disqualification; Statements.--After an order under this 
subchapter granting expungement of an individual's criminal records, 
that individual is not required to divulge information pertaining to 
the expunged conviction. The fact that such individual has been 
convicted of the criminal offense concerned shall not operate as a 
disqualification of that individual to pursue or engage in any lawful 
activity, occupation, or profession. Such individual is not guilty of 
any perjury, false answering, or making a false statement by reason of 
that individual's failure to recite or acknowledge such arrest or 
institution of criminal proceedings, or results thereof, in response to 
an inquiry made of that individual for any purpose.
    ``(c) Records To Be Destroyed.--Except as provided in section 3635, 
upon order of expungement, all official law enforcement and court 
records, including all references to such person's arrest for the 
offense, the institution of criminal proceedings against the 
individual, and the results thereof, except publicly available court 
opinions or briefs on appeal, shall be permanently destroyed.
``Sec. 3635. Disclosure of expunged records
    ``(a) Index To Assist Authorized Disclosure.--The Department of 
Justice shall maintain a nonpublic manual or computerized record of 
expungement under this subchapter containing only the name of, and 
alphanumeric identifiers selected by the Department of Justice that 
relate to, the persons who obtained expungement under this subchapter, 
and the order of expungement.
    ``(b) Authorized Disclosure to Individual.--Information in the 
index shall be made available only to the individual to whose 
expungement it pertains or to such individual's designated agent.
    ``(c) Punishment for Improper Disclosure.--Whoever knowingly 
discloses information relating to an expunged conviction other than as 
authorized in this subchapter shall be fined under this title or 
imprisoned not more than one year, or both.''.
    (c) Clerical Amendment.--The table of subchapters at the beginning 
of chapter 229 of title 18, United States Code, is amended by adding at 
the end the following item:

``D.     Expungement........................................    3631''.
    (d) Effective Date.--The amendments made by this section apply to 
individuals convicted of an offense before, on, or after the date of 
enactment of this Act.

SEC. 302. LIMIT ON DRUG TESTING FOR APPLICANTS FOR FEDERAL EMPLOYMENT.

    (a) Definition.--In this section, the term ``covered position'' 
means a position in the civil service (as defined in section 2101 of 
title 5, United States Code).
    (b) Prohibition.--If an applicant for a covered position used 
marijuana in accordance with the law of a State or the law of an Indian 
tribe that has jurisdiction over the Indian country in which the use 
occurred, before, on, or after the date on which the application is 
submitted, the no agency, establishment, or other appointing authority 
in the executive, legislative, or judicial branch of the Federal 
Government may--
            (1) require the applicant to submit to a test that screens 
        for the use of marijuana; or
            (2) in determining whether to appoint the applicant to the 
        covered position--
                    (A) use the results of a test indicating that an 
                applicant for a covered position used marijuana, in 
                whole or in part; or
                    (B) use any evidence that the applicant used 
                marijuana.

SEC. 303. FAIR ACCESS TO EDUCATION.

    (a) Short Title.--This section may be cited as the ``Fair Access to 
Education Act of 2017''.
    (b)  Exclusion of Misdemeanor Marijuana Possession Offenses From 
Drug-Related Offenses Resulting in Suspension of Eligibility for 
Financial Assistance for Higher Education.--Section 484(r)(1) of the 
Higher Education Act of 1965 (20 U.S.C. 1091(r)(1)) is amended by 
inserting after ``controlled substance'' the following: ``, but not 
including any misdemeanor offense for possession of marihuana (as such 
term is defined in section 102 of the Controlled Substances Act (21 
U.S.C. 802)),''.
    (c) Applicability; Resumption of Eligibility.--
            (1) Applicability.--The amendment made by subsection (a) 
        shall apply to convictions for offenses described in the matter 
        inserted by such amendment occurring before, on, and after the 
        date of enactment of this Act.
            (2) Resumption of eligibility.--Any student whose 
        eligibility for grants, loans, and work assistance under title 
        IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) 
        was suspended under section 484(1) of such Act by reason of a 
        conviction, before the date of enactment of this Act, for an 
        offense described in the matter inserted by the amendment made 
        by subsection (a) shall, unless otherwise ineligible for such 
        assistance, resume eligibility upon such date of enactment.

SEC. 304. CIVIL FORFEITURE EXEMPTION FOR MARIJUANA FACILITIES 
              AUTHORIZED BY STATE LAW.

    Section 511(a)(7) of the Controlled Substances Act (21 U.S.C. 
881(a)(7)) is amended--
            (1) by striking ``(7) All'' and inserting ``(7)(A) Except 
        as provided in subparagraph (B), all''; and
            (2) by adding at the end the following:
            ``(B) No real property, including any right, title, and 
        interest in the whole of any lot or tract of land and any 
        appurtenances or improvements, shall be subject to forfeiture 
        under subparagraph (A) due to marijuana-related conduct that is 
        authorized by State law or the law of the Indian tribe, as 
        defined in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 5304), that has 
        jurisdiction over the Indian country, as defined in section 
        1151 of title 18, United States Code, in which the conduct 
        occurs.''.

SEC. 305. PROHIBITION ON INADMISSIBILITY OR DEPORTATION OF ALIENS WHO 
              COMPLY WITH STATE LAW.

    (a) Prohibition on Inadmissibility.--Section 212(a)(2)(A)(i)(II) of 
the Immigration and Nationality Act (8 U.S.C. 1182(a)(2)(A)(i)(II)) is 
amended by inserting ``other than an act involving marijuana that is 
permitted under the laws of a State or the law of an Indian tribe, as 
defined in section 4 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 5304), that has jurisdiction over the Indian 
country, as defined in section 1151 of title 18, United States Code, in 
which the act occurs'' after ``802)),''.
    (b) Prohibition on Deportation.--Section 237(a)(2)(B)(i) of the 
Immigration and Nationality Act (8 U.S.C. 1227(a)(2)(B)(i)) is amended 
by striking ``marijuana,'' and inserting ``marijuana or an offense 
involving marijuana that is permitted under the laws of a State or the 
law of an Indian tribe, as defined in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304), that has 
jurisdiction over the Indian country, as defined in section 1151 of 
title 18, United States Code, in which the offense occurs''.

SEC. 306. DRUG-RELATED CRIMINAL ACTIVITY IN FEDERALLY ASSISTED HOUSING.

    (a) In General.--Section 3(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(b)) is amended--
            (1) by striking paragraph (9) and inserting the following:
            ``(9) Drug-related criminal activity.--The term `drug-
        related criminal activity'--
                    ``(A) means the illegal manufacture, sale, 
                distribution, use, or possession with intent to 
                manufacture, sell, distribute, or use, of a controlled 
                substance (as defined in section 102 of the Controlled 
                Substances Act (21 U.S.C. 802)); and
                    ``(B) does not include the manufacture, sale, 
                distribution, use, or possession with intent to 
                manufacture, sell, distribute, or use, of marijuana if 
                such activity is conducted in compliance with State law 
                or the law of the Indian tribe that has jurisdiction 
                over the Indian country where the activity occurs.''; 
                and
            (2) by adding at the end the following:
            ``(14) Indian country.--The term `Indian country' has the 
        meaning given the term in section 1151 of title 18, United 
        States Code.
            ``(15) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
            ``(16) Marijuana.--The term `marijuana' has the meaning 
        given the term in section 102 of the Controlled Substances Act 
        (21 U.S.C. 802).''.
    (b) Technical and Conforming Amendments.--
            (1) Quality housing and work responsibility act of 1998.--
        Section 576 of the Quality Housing and Work Responsibility Act 
        of 1998 (42 U.S.C. 13661) is amended by striking ``(as such 
        term is defined in section 3(b) of the United States Housing 
        Act of 1937 (42 U.S.C. 1437a(b))''.
            (2) United states housing act of 1937.--The United States 
        Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
                    (A) in section 6(l) (42 U.S.C. 1437d(l))--
                            (i) by redesignating the second paragraph 
                        designated as paragraph (7) (relating to 
                        violations as cause for termination of tenancy) 
                        as paragraph (8);
                            (ii) in paragraph (9), by redesignating 
                        paragraph (2) as subparagraph (B), and 
                        adjusting the margins accordingly; and
                            (iii) by striking the flush text following 
                        paragraph (9)(B), as so redesignated; and
                    (B) in section 8(f) (42 U.S.C. 1437f(f))--
                            (i) by striking paragraph (5); and
                            (ii) by redesignating paragraphs (6) and 
                        (7) as paragraphs (5) and (6), respectively.

            TITLE IV--MEDICAL MARIJUANA RESEARCH AND ACCESS

SEC. 401. MEDICAL MARIJUANA RESEARCH ACT.

    (a) Short Title.--This section may be cited as the ``Medical 
Marijuana Research Act of 2017''.
    (b) Definitions.--In this section--
            (1) the term ``qualified medical marijuana researcher'' 
        means a researcher who is registered to conduct research with 
        marijuana under section 303(f)(3) of the Controlled Substances 
        Act (21 U.S.C. 823(f)(3)), as amended by subsection (d); and
            (2) the term ``Secretary'' means the Secretary of Health 
        and Human Services.
    (c) Production and Supply.--
            (1) In general.--The Secretary--
                    (A) until the date on which the Secretary 
                determines that manufacturers and distributors (other 
                than the Federal Government) can ensure a sufficient 
                supply of marijuana for qualified medical marijuana 
                researchers, shall--
                            (i) continue to produce marijuana through 
                        the National Institute on Drug Abuse Drug 
                        Supply Program; and
                            (ii) offer for sale immature marijuana 
                        plants and the seeds of marijuana--
                                    (I) to all qualified medical 
                                marijuana researchers who submit a 
                                request for such plants or seeds to 
                                engage in research pursuant to section 
                                303(f)(3) of the Controlled Substances 
                                Act (21 U.S.C. 823(f)(3)), as amended 
                                by subsection (d); and
                                    (II) in quantities sufficient to 
                                produce an adequate supply of marijuana 
                                for such research; and
                    (B) beyond the date specified in subparagraph (A), 
                may, at the Secretary's discretion, continue to so 
                produce and supply marijuana.
            (2) Requirement to verify registration.--Before supplying 
        marijuana to any person through the National Institute on Drug 
        Abuse Drug Supply Program, the Secretary shall--
                    (A) require the person to submit documentation 
                demonstrating that the person is a qualified medical 
                marijuana researcher seeking to conduct research 
                pursuant to the section 303(f)(3) of the Controlled 
                Substances Act (21 U.S.C. 823(f)(3)), as amended by 
                subsection (d); and
                    (B) not later than 30 days after receipt of such 
                documentation, review such documentation and verify 
                that the marijuana will be used for such research.
            (3) Guidelines on production.--The Commissioner of Food and 
        Drugs, in consultation with the Director of the National 
        Institute on Drug Abuse, shall--
                    (A) not later than 180 days after the date of 
                enactment of this Act, issue guidelines on the 
                production of marijuana by qualified medical marijuana 
                researchers pursuant to paragraph (1)(A)(ii); and
                    (B) encourage researchers and manufacturers that 
                are authorized to produce or manufacture marijuana 
                pursuant to section 303 of the Controlled Substances 
                Act (21 U.S.C. 823), as amended by this section, to 
                comply with such guidelines to the extent applicable.
            (4) Definition.--In this subsection, the term ``immature 
        marijuana plant'' means a marijuana plant with no observable 
        flowers or buds.
    (d) Facilitating Marijuana Research.--
            (1) In general.--Section 303(f) of the Controlled 
        Substances Act (21 U.S.C. 823(f)) is amended--
                    (A) by redesignating paragraphs (1) through (5) as 
                subparagraphs (A) through (E), respectively;
                    (B) by striking ``(f) The Attorney General'' and 
                inserting ``(f)(1) The Attorney General'';
                    (C) by striking ``Registration applications'' and 
                inserting the following:
    ``(2) Registration applications'';
                    (D) in paragraph (2), as so designated, by striking 
                ``schedule I'' each place that term appears and 
                inserting ``schedule I, except marijuana,'';
                    (E) by striking ``Article 7'' and inserting the 
                following:
    ``(4) Article 7''; and
                    (F) by inserting before paragraph (4), as so 
                designated, the following:
    ``(3)(A) The Attorney General shall register a practitioner to 
conduct research with marijuana if--
            ``(i) the applicant is authorized to dispense, or conduct 
        research with respect to, controlled substances in schedules 
        II, III, IV, and V under the laws of the State in which the 
        applicant practices;
            ``(ii) the applicant's research protocol--
                    ``(I) has been reviewed and allowed by--
                            ``(aa) the Secretary under section 505(i) 
                        of the Federal Food, Drug, and Cosmetic Act (21 
                        U.S.C. 355(i)); or
                            ``(bb) the National Institutes of Health or 
                        another Federal agency that funds scientific 
                        research; or
                    ``(II) in the case of nonhuman research that is not 
                federally funded, has been voluntarily submitted by the 
                applicant to, and approved by, the National Institutes 
                of Health; and
            ``(iii) the applicant has demonstrated that there are 
        effective procedures in place to adequately safeguard against 
        diversion of the marijuana from legitimate medical or 
        scientific use, in accordance with subparagraph (E).
    ``(B) The Attorney General shall grant an application for 
registration under this paragraph unless the Attorney General 
determines that the issuance of the registration would be inconsistent 
with the public interest. In determining the public interest, the 
following factors shall be considered:
            ``(i) The applicant's experience in dispensing, or 
        conducting research with respect to, controlled substances.
            ``(ii) The applicant's conviction record under Federal or 
        State laws relating to the manufacture, distribution, or 
        dispensing of controlled substances.
            ``(iii) Compliance with applicable State, Federal, or local 
        laws relating to controlled substances.
            ``(iv) Such other conduct by the applicant that may 
        threaten the public health and safety.
    ``(C) Not later than 90 days after the date of enactment of the 
Medical Marijuana Research Act of 2017, for purposes of subparagraph 
(A)(ii)(II), the National Institutes of Health shall establish a 
process that--
            ``(i) allows a researcher to voluntarily submit the 
        research protocol of the researcher for review and approval; 
        and
            ``(ii) provides a researcher described in clause (i) with a 
        decision not less than 30 days after the date on which the 
        research protocol is submitted.
    ``(D)(i) Not later than 60 days after the date on which the 
Attorney General receives a complete application for registration under 
this paragraph, the Attorney General shall approve or deny the 
application.
    ``(ii) For purposes of clause (i), an application shall be deemed 
complete when the applicant has submitted documentation showing that 
the requirements under subparagraph (A) are satisfied.
    ``(E)(i) A researcher registered under this paragraph shall store 
marijuana to be used in research in a securely locked, substantially 
constructed cabinet.
    ``(ii) Except as provided in clause (i), any security measures 
required by the Attorney General for practitioners conducting research 
with marijuana pursuant to a registration under this paragraph shall be 
consistent with the security measures for practitioners conducting 
research on other controlled substances in schedule II that have a 
similar risk of diversion and abuse.
    ``(F)(i) If the Attorney General grants an application for 
registration under this paragraph, the applicant may amend or 
supplement the research protocol without reapplying if the applicant 
does not--
            ``(I) change the type of drug, the source of the drug, or 
        the conditions under which the drug is stored, tracked, or 
        administered; or
            ``(II) otherwise increase the risk of diversion.
    ``(ii) If an applicant amends or supplements the research protocol 
or initiates research on a new research protocol under clause (i), the 
applicant shall, in order to renew the registration under this 
paragraph, provide notice to the Attorney General of the amended or 
supplemented research protocol or any new research protocol in the 
applicant's renewal materials.
    ``(iii)(I) If an applicant amends or supplements a research 
protocol and the amendment or supplement involves a change to the type 
of drug, the source of the drug, or conditions under which the drug is 
stored, tracked, or administered or otherwise increases the risk of 
diversion, the applicant shall provide notice to the Attorney General 
not later than 30 days before proceeding on such amended or 
supplemental research or new research protocol, as the case may be.
    ``(II) If the Attorney General does not object during the 30-day 
period following a notification under subclause (I), the applicant may 
proceed with the amended or supplemental research or new research 
protocol.
    ``(iv) The Attorney General may object to an amended or 
supplemental protocol or a new research protocol under clause (i) or 
(iii) only if additional security measures are needed to safeguard 
against diversion or abuse.
    ``(G) If marijuana or a compound of marijuana is listed on a 
schedule other than schedule I, the provisions of paragraphs (1), (2), 
and (4) that apply to research with a controlled substance in the 
applicable schedule shall apply to research with marijuana or that 
compound, as applicable, in lieu of the provisions of subparagraphs (A) 
through (F) of this paragraph.''.
            (2) Conforming amendment.--Section 102(16) of the 
        Controlled Substances Act (21 U.S.C. 802(16)) is amended by 
        inserting ``or `marijuana''' after ``The term `marihuana'''.
    (e) Manufacture and Distribution of Marijuana for Use in 
Legitimate, Medical Research.--Section 303 of the Controlled Substances 
Act (21 U.S.C. 823), as amended by subsection (d), is further amended 
by adding at the end the following:
    ``(k) Registration of Persons To Manufacture and Distribute 
Marijuana for Use in Legitimate, Medical Research.--
            ``(1) Registration of manufacturers.--Beginning not later 
        than the day that is 1 year after the date of enactment of the 
        Medical Marijuana Research Act of 2017, the Attorney General 
        shall register an applicant to manufacture marijuana to the 
        extent the marijuana will be used exclusively by qualified 
        medical marijuana researchers for research pursuant to 
        subsection (f)(3), unless the Attorney General determines that 
        the issuance of such registration is inconsistent with the 
        public interest. In determining the public interest, the 
        Attorney General shall--
                    ``(A) take into consideration--
                            ``(i) maintenance of effective controls 
                        against diversion of marijuana and any 
                        controlled substance compounded therefrom into 
                        other than legitimate medical, scientific, or 
                        research channels;
                            ``(ii) compliance with applicable State and 
                        local law; and
                            ``(iii) prior conviction record of the 
                        applicant under Federal or State laws relating 
                        to the manufacture, distribution, or dispensing 
                        of such substances; and
                    ``(B) not take into consideration any factors other 
                than the factors listed in subparagraph (A).
            ``(2) Registration of distributors.--Beginning not later 
        than the day that is 1 year after the date of enactment of the 
        Medical Marijuana Research Act of 2017, the Attorney General 
        shall register an applicant to distribute marijuana that is 
        intended to be used exclusively by qualified medical marijuana 
        researchers for research pursuant to subsection (f)(3), unless 
        the Attorney General determines that the issuance of such 
        registration is inconsistent with the public interest. In 
        determining the public interest, the Attorney General shall--
                    ``(A) take into consideration--
                            ``(i) maintenance of effective controls 
                        against diversion of marijuana and any 
                        controlled substance compounded therefrom into 
                        other than legitimate medical, scientific, or 
                        research channels;
                            ``(ii) compliance with applicable State and 
                        local law;
                            ``(iii) prior conviction record of the 
                        applicant under Federal or State laws relating 
                        to the manufacture, distribution, or dispensing 
                        of such substances; and
                            ``(iv) past experience in the distribution 
                        of controlled substances, and the existence in 
                        the establishment of effective controls against 
                        diversion; and
                    ``(B) not take into consideration any factors other 
                than the factors listed in subparagraph (A).
            ``(3) No limit on number of manufacturers and 
        distributors.--Notwithstanding any other provision of law, the 
        Attorney General shall not impose or implement any limit on the 
        number of persons eligible to be registered to manufacture or 
        distribute marijuana pursuant to paragraph (1) or (2).
            ``(4) Requirement to verify use for legitimate, medical 
        research.--As a condition on registration under this section to 
        manufacture or distribute marijuana, the Attorney General shall 
        require the registrant--
                    ``(A) to require any person to whom the marijuana 
                will be supplied to submit documentation demonstrating 
                that the marijuana will be used exclusively by 
                qualified medical marijuana researchers for research 
                pursuant to subsection (f)(3); and
                    ``(B) not later than 30 days after receipt of such 
                documentation, and before supplying the marijuana to 
                such person, to review such documentation and verify 
                that the marijuana will be so used.
            ``(5) Timing.--Not later than 30 days after receipt of a 
        request for registration under this subsection to manufacture 
        or distribute marijuana, the Attorney General shall--
                    ``(A) grant or deny the request; and
                    ``(B) in the case of a denial, provide a written 
                explanation of the basis for the denial.
            ``(6) Definition.--For purposes of this subsection, the 
        term `qualified medical marijuana researcher' means a 
        researcher who is registered to conduct research with marijuana 
        under subsection (f)(3).''.
    (f) Termination of Interdisciplinary Review Process for Non-NIH-
Funded Researchers.--The Secretary may not--
            (1) reinstate the Public Health Service interdisciplinary 
        review process described in the guidance entitled ``Guidance on 
        Procedures for the Provision of Marijuana for Medical 
        Research'' (issued on May 21, 1999); or
            (2) create an additional review of scientific protocols 
        that is only conducted for research on marijuana other than the 
        review of research protocols performed at the request of a 
        researcher conducting nonhuman research that is not federally 
        funded, in accordance with section 303(f)(3)(A)(ii)(II) of the 
        Controlled Substances Act (21 U.S.C. 823(f)(3)(A)(ii)(II)), as 
        amended by subsection (d).
    (g) Consideration of Results of Research.--Immediately upon the 
approval by the Food and Drug Administration of an application for a 
marijuana-based drug under section 505 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 355), and (irrespective of whether any such 
approval is granted) not later than the date that is 5 years after the 
date of enactment of this Act, the Secretary shall--
            (1) conduct a review of existing medical and other research 
        with respect to marijuana;
            (2) submit a report to the Congress on the results of such 
        review; and
            (3) include in such report whether, taking into 
        consideration the factors listed in section 201(c) of the 
        Controlled Substances Act (21 U.S.C. 811(c)), as well as any 
        potential for medical benefits, any gaps in research, and any 
        impacts of Federal restrictions and policy on research, 
        marijuana should be transferred to a schedule other than 
        schedule I (if marijuana has not been so transferred already).
    (h) No Production Quotas for Marijuana Grown for Legitimate, 
Medical Research.--Section 306 of the Controlled Substances Act (21 
U.S.C. 826) is amended by adding at the end the following:
    ``(i) The Attorney General may only establish a quota for 
production of marijuana that is manufactured and distributed in 
accordance with the Medical Marijuana Research Act of 2017 that meets 
the changing medical, scientific, and industrial needs for 
marijuana.''.
    (i) Article 28 of the Single Convention on Narcotic Drugs.--Article 
28 of the Single Convention on Narcotic Drugs shall not be construed to 
prohibit, or impose additional restrictions upon, research involving 
marijuana, or the manufacture, distribution, or dispensing of 
marijuana, that is conducted in accordance with the Controlled 
Substances Act (21 U.S.C. 801 et seq.), this section, and the 
amendments made by this section.
    (j) No Interference by Department of Justice.--The Attorney 
General, and any officer or employee of the Department of Justice, 
shall not interfere with the production, distribution, and sale of 
marijuana in accordance with this section and the amendments made by 
this section.

SEC. 402. PROVISION BY HEALTH CARE PROVIDERS OF THE DEPARTMENT OF 
              VETERANS AFFAIRS OF RECOMMENDATIONS AND OPINIONS 
              REGARDING VETERAN PARTICIPATION IN STATE MARIJUANA 
              PROGRAMS.

    (a) Short Title.--This section may be cited as the ``Veterans Equal 
Access Act of 2017''.
    (b) Authorization.--Notwithstanding any other provision of law, the 
Secretary of Veterans Affairs shall authorize physicians and other 
health care providers employed by the Department of Veterans Affairs--
            (1) to provide recommendations and opinions to veterans who 
        are residents of States with State marijuana programs regarding 
        the participation of veterans in such State marijuana programs; 
        and
            (2) to complete forms reflecting such recommendations and 
        opinions.

SEC. 403. PROVISION BY MEDICAL PROFESSIONALS OF THE INDIAN HEALTH 
              SERVICE OF RECOMMENDATIONS AND OPINIONS REGARDING 
              PARTICIPATION IN STATE MARIJUANA PROGRAMS.

            (1) In general.--Notwithstanding any other provision of 
        law, IHS medical professionals are authorized to make medical 
        recommendations to their patients with regard to marijuana and 
        to complete forms reflecting such recommendations.
            (2) Definitions.--In this subsection:
                    (A) IHS medical professional.--The term ``IHS 
                medical professional'' means a physician or other 
                health professional furnishing services through an 
                Indian health program (as defined in section 108(a)(2) 
                of the Indian Health Care Improvement Act (25 U.S.C. 
                1616a(a)(2))).
                    (B) Recommendations.--The term ``recommendations'' 
                does not include dispensing (as defined in section 102 
                of the Controlled Substances Act (21 U.S.C. 802)).
                                 <all>
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