II 

118TH CONGRESS 

2D SESSION S. 4226 

To decriminalize and deschedule cannabis, to provide for reinvestment in 

certain persons adversely impacted by the War on Drugs, to provide 

for expungement of certain cannabis offenses, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 1, 2024 

Mr. BOOKER (for himself, Mr. SCHUMER, Mr. WYDEN, Mr. FETTERMAN, Mrs. 

MURRAY, Mr. PETERS, Mr. MERKLEY, Mr. WARNOCK, Ms. BUTLER, Mr. 

WELCH, Ms. SMITH, Mrs. GILLIBRAND, Mr. MARKEY, Mr. LUJA ́N, Ms. 

WARREN, Mr. HICKENLOOPER, Mr. BENNET, and Mr. PADILLA) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To decriminalize and deschedule cannabis, to provide for 

reinvestment in certain persons adversely impacted by 

the War on Drugs, to provide for expungement of certain 

cannabis offenses, and for other purposes. 

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’’. 


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

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Definitions. 

TITLE I—DECRIMINALIZATION OF CANNABIS, PUBLIC SAFETY, 

AND STATES’ RIGHTS 

Subtitle A—Decriminalization of Cannabis 

Sec. 101. Decriminalization of cannabis. 

Sec. 102. Transferring agency functions with regard to cannabis. 

Subtitle B—Public Safety and States’ Rights 

Sec. 111. States’ rights. 

Sec. 112. Diversion of cannabis. 

TITLE II—RESEARCH, TRAINING, AND PREVENTION 

Subtitle A—Public Health and Biomedical Research 

Sec. 201. Societal impact of cannabis legalization study. 

Sec. 202. Biomedical research on cannabis. 

Sec. 203. Public health surveillance and data collection. 

Sec. 204. Awards to prevent underage cannabis use. 

Sec. 205. National media campaigns on cannabis use. 

Sec. 206. Increasing availability of cannabis products for research purposes. 

Sec. 207. Trans-NIH cannabis consortium. 

Sec. 208. Cannabis research interagency advisory committee. 

Sec. 209. Awards for cannabis research. 

Sec. 210. Department of Veterans Affairs clinical trials on the effects of cannabis on certain health outcomes of veterans with chronic pain 

and post-traumatic stress disorder. 

Sec. 211. Cannabis research infrastructure grants. 

Subtitle B—Cannabis-Impaired Driving Prevention 

Sec. 221. Definitions. 

Sec. 222. Cannabis-impaired driving research. 

Sec. 223. DOT cannabis-impaired driving prevention programs. 

Sec. 224. State cannabis-impaired driving prevention grant program. 

Sec. 225. National cannabis impairment standard. 

Sec. 226. Funding. 

TITLE III—RESTORATIVE JUSTICE AND OPPORTUNITY 

Subtitle A—Opportunity Trust Fund Programs 

Sec. 301. Opportunity trust fund programs. 

Sec. 302. Comprehensive opioid, stimulant, and substance use disorder program. 

Sec. 303. Availability of small business administration programs and services to 

cannabis-related legitimate businesses and service providers. 

Sec. 304. Demographic data of cannabis business owners and employees. 


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Sec. 305. Pilot program. 

Sec. 306. Eliminating disparities among cannabis-related legitimate businesses 

and service providers. 

Subtitle B—Restorative Justice 

Sec. 311. Resentencing and expungement. 

Sec. 312. No discrimination in the provision of a Federal public benefit on the 

basis of cannabis. 

Sec. 313. No adverse effect for purposes of the immigration laws. 

Sec. 314. Provision by health care providers of the Department of Veterans Affairs of recommendations and opinions regarding veteran participation in cannabis programs. 

Sec. 315. Provision by health care providers of Indian health programs of recommendations and opinions regarding participation in cannabis 

programs. 

TITLE IV—TAXATION AND ESTABLISHMENT OF TRUST FUND 

Sec. 401. Creation of Opportunity Trust Fund and imposition of taxes with respect to cannabis products. 

TITLE V—PUBLIC HEALTH, CANNABIS ADMINISTRATION, AND 

TRADE PRACTICES 

Subtitle A—Public Health 

Sec. 501. FDA regulation of cannabis. 

Sec. 502. Amendments to the Federal Food, Drug, and Cosmetic Act. 

Sec. 503. Expedited review. 

Sec. 504. Regulation of cannabidiol. 

Sec. 505. Transition periods. 

Sec. 506. Amendment to the Poison Prevention Packaging Act. 

Sec. 507. Funding for FDA. 

Subtitle B—Federal Cannabis Administration 

Sec. 511. Federal cannabis administration. 

Sec. 512. Increased funding for the Alcohol, Tobacco, and Cannabis Tax and 

Trade Bureau. 

TITLE VI—WORKPLACE HEALTH AND SAFETY PROVISIONS 

Sec. 601. Definitions. 

Sec. 602. Finding regarding employers in the cannabis industry. 

Sec. 603. Cannabis as a targeted topic for Susan Harwood training grant program. 

Sec. 604. Guidance on recommended practices. 

Sec. 605. Workplace impact of cannabis legalization. 

Sec. 606. Grants for community-based education, outreach, and enforcement 

with respect to the rights of workers in the cannabis industry. 

TITLE VII—BANKING, HOUSING, AND COMMUNITY DEVELOPMENT 

Sec. 701. Purposes; sense of Congress. 

Sec. 702. Requirements for filing suspicious activity reports. 

Sec. 703. Guidance and examination procedures. 

Sec. 704. Investment in communities. 


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Sec. 705. Fair access to financial services. 

Sec. 706. Consumer protections for individuals with nonviolent criminal record. 

TITLE VIII—MISCELLANEOUS 

Sec. 801. Comptroller General review of laws and regulations. 

Sec. 802. Cannabis Products Advisory Committee. 

Sec. 803. Definition of hemp under USDA domestic hemp production program. 

Sec. 804. Grants for hiring and training relating to cannabis enforcement. 

Sec. 805. Severability. 

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 24 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) The Food and Drug Administration rec21 ommended that cannabis be rescheduled under the 


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1 Controlled Substances Act, from Schedule I to 

2 Schedule III, having identified ‘‘credible scientific 

3 support for the medical use of marijuana’’. 

4 (6) Legal cannabis businesses support more 

5 than 417,000 jobs throughout the United States. 

6 (7) Legal cannabis sales totaled 

7 $33,600,000,000 in 2023 and are projected to reach 

8 $56,900,000,000 by 2028. 

9 (8) According to the American Civil Liberties 

10 Union (ACLU), enforcing cannabis prohibition laws 

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

12 year. 

13 (9) The continued enforcement of cannabis pro14 hibition laws resulted in over 227,000 arrests in 

15 2022, disproportionately impacting people of color 

16 who are almost 4 times more likely to be arrested 

17 for cannabis possession than their White counter18 parts, despite equal rates of use across populations. 

19 (10) People of color and Native Americans have 

20 been historically targeted by discriminatory sen21 tencing practices resulting in Black men receiving 

22 drug sentences that are 13.1 percent longer than 

23 sentences imposed for White men and Latinos being 

24 nearly 6.5 times more likely to receive a Federal 


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1 sentence for cannabis possession than non-Hispanic 

2 Whites. 

3 (11) In 2013, simple cannabis possession was 

4 the fourth most common cause of deportation for 

5 any offense and the most common cause of deporta6 tion for drug law violations. Since 2003, the United 

7 States has deported more than 45,000 people whose 

8 most serious conviction was cannabis possession. 

9 (12) Fewer than one-fifth of cannabis business 

10 owners identify as non-white. 

11 (13) Applicants for cannabis licenses are lim12 ited by numerous laws, regulations, and exorbitant 

13 permit applications, licensing fees, and costs in these 

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

15 (14) Historically disproportionate arrest and 

16 conviction rates make it particularly difficult for 

17 people of color to enter the legal cannabis market18 place, as many States bar these individuals from 

19 participating. 

20 (15) Federal law severely limits access to loans 

21 and capital for cannabis businesses, disproportion22 ately impacting minority and Tribal small business 

23 owners. 

24 (16) Some States, Indian Tribes, and munici25 palities have taken proactive steps to mitigate inVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 equalities in the legal cannabis marketplace and en2 sure equal participation in the industry. 

3 SEC. 3. DEFINITIONS. 

4 In this Act: 

5 (1) CANNABIS; CANNABIS PRODUCT.—The 

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

7 same meanings given such terms in subsection (tt) 

8 of section 201 of the Federal Food, Drug, and Cos9 metic Act (21 U.S.C. 321) (as added by section 502 

10 of this Act). 

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

12 offense’’ means a criminal offense related to can13 nabis— 

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

15 punishable pursuant to this Act or the amend16 ments made under this Act; or 

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

18 offense or that was designated a lesser offense 

19 or for which the penalty was reduced under 

20 State law pursuant to or following the adoption 

21 of a State law authorizing the sale or use of 

22 cannabis. 

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

24 means the governing body of any individually identi25 fied and federally recognized Indian or Alaska NaVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 tive tribe, band, nation, pueblo, village, community, 

2 affiliated Tribal group, or component reservation in3 cluded on the list published most recently as of the 

4 date of enactment of this Act pursuant to section 

5 104(a) of the Federally Recognized Indian Tribe 

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

7 TITLE I—DECRIMINALIZATION 

8 OF CANNABIS, PUBLIC SAFE9 TY, AND STATES’ RIGHTS 

10 Subtitle A—Decriminalization of 

11 Cannabis 

12 SEC. 101. DECRIMINALIZATION OF CANNABIS. 

13 (a) CANNABIS REMOVED FROM SCHEDULE OF CON14 TROLLED SUBSTANCES.— 

15 (1) REMOVAL IN STATUTE.—Schedule I of sec16 tion 202 of the Controlled Substances Act (21 

17 U.S.C. 812) is amended— 

18 (A) in subsection (c)— 

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

20 and 

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

22 ‘‘in cannabis (as defined in section 

23 201(tt)(1) of the Federal Food, Drug, and 

24 Cosmetic Act (21 U.S.C. 321(tt)(1))) or 


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1 tetrahydrocannabinols’’ before ‘‘in hemp’’; 

2 and 

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

4 end the following new subparagraph: 

5 ‘‘(C) Such term does not include any sub6 stance made of or derived from cannabis (as de7 fined in section 201(tt)(1) of the Federal Food, 

8 Drug, and Cosmetic Act (21 U.S.C. 321(tt)(1)) 

9 or hemp (as defined in section 297A of the Ag10 ricultural Marketing Act of 1946 (7 U.S.C. 

11 1639o)))’’. 

12 (2) REMOVAL FROM SCHEDULE.—Not later 

13 than 180 days after the date of the enactment of 

14 this Act, the Attorney General shall finalize a rule15 making under section 201(a)(2) of the Controlled 

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

17 marihuana and tetrahydrocannabinols in cannabis 

18 (as defined in section 201(tt)(1) of the Federal 

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

20 321(tt)(1))) from the schedules of controlled sub21 stances. For the purposes of the Controlled Sub22 stances Act, marihuana and tetrahydrocannabinols 

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

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

25 requirements for inclusion in any schedule. A ruleVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 making under this paragraph shall be considered to 

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

3 Act for purposes of any offense committed, case 

4 pending, conviction entered, and, in the case of a ju5 venile, any offense committed, case pending, and ad6 judication of juvenile delinquency entered before, on, 

7 or after the date of enactment of this Act. 

8 (3) RESCHEDULING REVIEW OF NON-CANNABIS

9 DERIVED TETRAHYDROCANNIBINOLS AND

10 CANNABIMIMETIC AGENTS.— 

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

12 after the date of enactment of this Act, the At13 torney General shall initiate a review of the 

14 schedules applicable to the substances described 

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

16 section 202 of the Controlled Substances Act 

17 (21 U.S.C. 812). 

18 (B) MOTION TO TRANSFER.—Pursuant to 

19 the findings of the review conducted under sub20 paragraph (A), the Secretary of Health and 

21 Human Services shall, as appropriate, initiate a 

22 motion to transfer such substances between 

23 schedules pursuant to section 201 of the Con24 trolled Substances Act (21 U.S.C. 811). 


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1 (b) CONFORMING AMENDMENTS TO CONTROLLED

2 SUBSTANCES ACT.—The Controlled Substances Act (21 

3 U.S.C. 801 et seq.) is amended— 

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

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

6 (B) in paragraph (44), by striking ‘‘mari7 huana,’’; 

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

9 (A) in paragraph (1)— 

10 (i) in subparagraph (A)— 

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

12 ‘‘or’’ after the semicolon; 

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

14 (III) by redesignating clause 

15 (viii) as clause (vii); 

16 (ii) in subparagraph (B)— 

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

18 ‘‘or’’ after the semicolon; 

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

20 (III) by redesignating clause 

21 (viii) as clause (vii); 

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

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

24 (B), and (D)’’ and inserting ‘‘subpara25 graphs (A) and (B)’’; 


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1 (iv) by striking subparagraph (D); 

2 (v) by redesignating subparagraph (E) 

3 as subparagraph (D); and 

4 (vi) in subparagraph (D)(i), as so re5 designated, by striking ‘‘subparagraphs (C) 

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

7 (C)’’; 

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

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

10 and (7) as paragraphs (4), (5), and (6), respec11 tively; 

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

13 842(c)(2)(B)), by striking ‘‘, marihuana,’’; 

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

15 by striking ‘‘, marihuana,’’; 

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

17 striking the last sentence; 

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

19 striking the last sentence; 

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

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

22 by striking ‘‘marijuana, cocaine, hashish, hash23 ish oil,’’ and inserting ‘‘cocaine,’’; and 

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

25 as a marihuana cigarette,’’; 


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

2 striking ‘‘section 401(b)(6)’’ each place the term ap3 pears and inserting ‘‘section 401(b)(5)’’; and 

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

5 (A) in paragraph (1)— 

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

7 ‘‘or’’ after the semicolon; 

8 (ii) by striking subparagraph (G); 

9 (iii) by redesignating subparagraph 

10 (H) as subparagraph (G); and 

11 (iv) in subparagraph (G), as so redes12 ignated, by striking the period at the end 

13 and inserting a semicolon; 

14 (B) in paragraph (2)— 

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

16 ‘‘or’’ after the semicolon; 

17 (ii) by striking subparagraph (G); 

18 (iii) by redesignating subparagraph 

19 (H) as subparagraph (G); and 

20 (iv) in subparagraph (G), as so redes21 ignated, by striking the period at the end 

22 and inserting a semicolon; 

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


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

2 and (7) as paragraphs (4), (5), and (6), respec3 tively. 

4 (c) OTHER CONFORMING AMENDMENTS.— 

5 (1) NATIONAL FOREST SYSTEM DRUG CONTROL

6 ACT OF 1986.—The National Forest System Drug 

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

8 amended— 

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

10 559b(a)) by striking ‘‘marijuana and other’’; 

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

12 559c(2)) by striking ‘‘marijuana and other’’; 

13 and 

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

15 559d(2)) by striking ‘‘marijuana and other’’. 

16 (2) INTERCEPTION OF COMMUNICATIONS.—Sec17 tion 2516 of title 18, United States Code, is amend18 ed— 

19 (A) in subsection (1)(e), by striking ‘‘mari20 huana,’’; and 

21 (B) in subsection (2) by striking ‘‘mari22 huana’’. 

23 (3) FMCSA PROVISIONS.— 

24 (A) CONFORMING AMENDMENT.—Section 

25 31301(5) of title 49, United States Code, is 


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1 amended by striking ‘‘section 31306,’’ and in2 serting ‘‘sections 31306, 31306a, and sub3 sections (b) and (c) of section 31310,’’. 

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

5 title 49, United States Code, is amended— 

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

7 and inserting the following: ‘‘means— 

8 ‘‘(1) any substance’’; and 

9 (ii) by striking the period at the end 

10 and inserting ‘‘; and 

11 ‘‘(2) any substance not covered under para12 graph (1) that was a substance under such section 

13 as of December 1, 2018, and specified by the Sec14 retary of Transportation.’’. 

15 (C) DISQUALIFICATIONS.—Section 

16 31310(b) of title 49, United States Code, is 

17 amended by adding at the end the following: 

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

19 term ‘controlled substance’ has the meaning given 

20 such term in section 31306(a).’’. 

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

22 49, United States Code, is amended— 

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

24 and inserting the following: ‘‘means— 

25 ‘‘(1) any substance’’; and 


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

2 inserting ‘‘; and 

3 ‘‘(1) any substance not covered under para4 graph (1) that was a substance under such section 

5 as of December 1, 2018, and specified by the Sec6 retary of Transportation.’’. 

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

8 title 49, United States Code, is amended— 

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

10 and inserting the following: ‘‘means— 

11 ‘‘(1) any substance’’; and 

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

13 inserting ‘‘; and 

14 ‘‘(2) any substance not covered under para15 graph (1) that was a substance under such section 

16 as of December 1, 2018, and specified by the Sec17 retary of Transportation.’’. 

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

19 title 49, United States Code, is amended— 

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

21 and inserting the following: ‘‘means— 

22 ‘‘(A) any substance’’; and 

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

24 inserting ‘‘; and 


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1 ‘‘(B) any substance not covered under sub2 paragraph (A) that was a substance under such 

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

4 the Secretary of Transportation decides has a 

5 risk to transportation safety.’’. 

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

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

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

9 ‘‘marijuana or’’; 

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

11 ‘‘marijuana or’’; and 

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

13 cannabis, as defined in section 3 of the Can14 nabis Administration and Opportunity Act,’’ 

15 after ‘‘subsection)’’. 

16 (8) OTHER CONTRABAND.—Section 

17 80302(a)(1) of title 49, United States Code, is 

18 amended by striking ‘‘, including marihuana (as de19 fined in section 102 of that Act (21 U.S.C. 802)),’’. 

20 (9) TARIFF ACT PROVISIONS.—Section 

21 584(a)(2) of the Tariff Act of 1930 (19 U.S.C. 

22 1584(a)(2)) is amended— 

23 (A) by striking the second sentence and in24 serting ‘‘If any of such merchandise so found 

25 consists of smoking opium or opium prepared 


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1 for smoking, the master of such vessel or per2 son in charge of such vehicle or the owner of 

3 such vessel or vehicle or any person directly or 

4 indirectly responsible for smoking opium or 

5 opium prepared for smoking being in such mer6 chandise shall be liable to a penalty of $500 for 

7 each ounce thereof so found.’’; and 

8 (B) by striking the last sentence and in9 serting ‘‘As used in this paragraph, the term 

10 ‘opiate’ shall have the same meaning given that 

11 term by sections 102(18) of the Controlled Sub12 stances Act (21 U.S.C. 802(18)).’’. 

13 (d) RETROACTIVITY.— 

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

15 this section to the Controlled Substances Act (21 

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

17 to any offense committed, case pending, conviction 

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

19 committed, case pending, or adjudication of juvenile 

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

21 enactment of this Act. 

22 (2) APPLICATION TO PENDING ACTIONS.—With 

23 respect to any pending criminal charges or case and 

24 conviction awaiting sentencing that is impacted by 

25 the amendments to the Controlled Substances Act 


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1 (21 U.S.C. 801 et seq.) made by this section, the 

2 Government shall drop the relevant charges or seek 

3 dismissal of all pending charges not later than 30 

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

5 person held in pretrial detention and entitled to dis6 missal of relevant charges under this provision, and 

7 not detained for any other reason, shall be entitled 

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

9 title 28, United States Code, to effectuate immediate 

10 release. 

11 (3) APPLICATION TO DEFENDANTS PREVIOUSLY

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

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

14 of Prisons, United States Marshals Service, or 

15 United States Parole Commission, as applicable, 

16 shall release from its control, and the sentencing 

17 court shall enter an order vacating the conviction 

18 and sentence for, any individual convicted or sen19 tenced before the date of enactment of this Act for 

20 any Federal offense involving marijuana, marihuana 

21 (as defined in section 202(16) of the Controlled Sub22 stances Act (21 U.S.C. 812(16))), or 

23 tetrahydrocannabinols and is not serving a sentence 

24 for any conduct not covered by this Act or serving 

25 multiple sentences as provided in section 3584 of 


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

2 timely released and entitled to such release under 

3 this provision shall be entitled to issuance of a writ 

4 under section 1361 or 2241 of title 28, United 

5 States Code, to effectuate immediate release. 

6 (4) CUMULATIVE SENTENCING RECONSIDER7 ATION.—In the case of a defendant who, before the 

8 date of enactment of this Act, was convicted or sen9 tenced for any Federal offense involving marijuana, 

10 marihuana, or tetrahydrocannabinols, and, after 

11 vacatur of that sentence, is also serving a sentence 

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

13 the case of a defendant who was convicted or sen14 tenced for any Federal offense the sentencing range 

15 for which was elevated based on a prior conviction 

16 for an offense involving marijuana, marihuana, or 

17 tetrahydrocannabinols, the sentencing court may, on 

18 motion of the defendant, the Director of the Bureau 

19 of Prisons, the Attorney General, or, on its own mo20 tion, impose a reduced sentence after considering the 

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

22 United States Code. 

23 (e) SPECIAL RULE FOR FEDERAL EMPLOYEE TEST24 ING.—Section 503 of the Supplemental Appropriations 


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

2 the end the following: 

3 ‘‘(h) CANNABIS.— 

4 ‘‘(1) TESTING FOR CANNABIS.— 

5 ‘‘(A) IN GENERAL.—For purposes of Exec6 utive Order 12564, cannabis shall not be treat7 ed as an illegal drug. 

8 ‘‘(B) EXCEPTION FOR DRUG TESTING.— 

9 Notwithstanding subparagraph (A) or the Can10 nabis Administration and Opportunity Act and 

11 the amendments made thereby, the Secretary of 

12 Health and Human Services or the head of an 

13 agency may deem cannabis to be a schedule I 

14 controlled substance within the meaning of sec15 tion 102(6) of the Controlled Substances Act 

16 (21 U.S.C. 802(6)), and unlawful to possess 

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

18 the purpose of drug testing of any law enforce19 ment officer (as defined in section 8331 of title 

20 5, United States Code) or any Federal employee 

21 in a position that the head of an agency deter22 mines, in writing, to have significant involve23 ment in national security or the protection of 

24 life, property, public health, or public safety, 

25 provided that either such employee is subject to 


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1 this section, Executive Order 12564, or other 

2 applicable Federal laws and orders. 

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

4 the meaning given the term in section 3 of the Can5 nabis Administration and Opportunity Act.’’. 

6 (f) SPECIAL RULE FOR CERTAIN REGULATIONS.— 

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

8 this section may not be construed to abridge the au9 thority of the Secretary of Transportation, or the 

10 Secretary of the department in which the Coast 

11 Guard is operating, to regulate and screen for the 

12 use of a controlled substance. 

13 (2) CONTROLLED SUBSTANCE DEFINED.—In 

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

15 means— 

16 (A) any substance covered under section 

17 102 of the Controlled Substances Act (21 

18 U.S.C. 802) on the day before the date of en19 actment of this Act; and 

20 (B) any substance not covered under sub21 paragraph (A) that was a substance covered 

22 under section 102 of the Controlled Substances 

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

24 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 Act enti13 tled ‘‘An Act divesting intoxicating liquors of their inter14 state character in certain cases’’, approved March 1, 1913 

15 (commonly known as the ‘‘Webb-Kenyon Act’’) (27 U.S.C. 

16 122a), is amended— 

17 (1) in subsection (a)— 

18 (A) by redesignating paragraphs (2), (3), 

19 and (4) as paragraphs (3), (4), and (5), respec20 tively; and 

21 (B) by inserting after paragraph (1) the 

22 following: 

23 ‘‘(2) the term ‘cannabis’ has the meaning given 

24 the term in section 3 of the Cannabis Administra25 tion and Opportunity Act ;’’; and 


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

2 cannabis’’ after ‘‘intoxicating liquor’’ each place that 

3 term appears. 

4 SEC. 112. DIVERSION OF CANNABIS. 

5 (a) IN GENERAL.— 

6 (1) VIOLATIONS OF CANNABIS LAWS OR REGU7 LATIONS; PENALTIES AND INJUNCTIONS.— 

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

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

10 carrier holding a certificate of convenience and 

11 necessity, a permit for contract carrier by 

12 motor vehicle, or other valid operating authority 

13 under subtitle IV of title 49, United States 

14 Code, or under equivalent operating authority 

15 from a regulatory agency of the United States 

16 or of any State. 

17 (B) CANNABIS DIVERSION.— 

18 (i) IN GENERAL.—Except as provided 

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

20 (I) knowingly grow, manufacture, 

21 ship, transport, receive, possess, sell, 

22 or distribute or purchase 10 pounds 

23 or more of cannabis without author24 ization under a State law or pursuant 

25 to a permit issued under section 301 


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1 of the Federal Alcohol Administration 

2 Act, as added by section 511 of this 

3 Act; or 

4 (II) knowingly possess 10 pounds 

5 or more of cannabis that bears no evi6 dence of the payment of applicable 

7 State or local cannabis taxes in the 

8 State or locality where the cannabis is 

9 found, if— 

10 (aa) the State or local gov11 ernment requires a stamp, im12 pression, or other indication to be 

13 placed on packages or other con14 tainers of cannabis to evidence 

15 payment of cannabis taxes; and 

16 (bb) the cannabis is in the 

17 possession of any person other 

18 than a person holding a permit 

19 under section 301 of the Federal 

20 Alcohol Administration Act, as 

21 added by section 511 of this Act; 

22 (III) knowingly grow, manufac23 ture, ship, transport, receive, possess, 

24 sell, or distribute or purchase 20 

25 pounds or more of cannabis without 


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1 authorization under a State law or 

2 pursuant to a permit issued under 

3 section 301 of the Federal Alcohol 

4 Administration Act, as added by sec5 tion 511 of this Act; or 

6 (IV) knowingly possess 20 

7 pounds or more of cannabis that bears 

8 no evidence of the payment of applica9 ble State or local cannabis taxes in 

10 the State or locality where the can11 nabis is found, if— 

12 (aa) the State or local gov13 ernment requires a stamp, im14 pression, or other indication to be 

15 placed on packages or other con16 tainers of cannabis to evidence 

17 payment of cannabis taxes; and 

18 (bb) the cannabis is in the 

19 possession of any person other 

20 than a person holding a permit 

21 under section 301 of the Federal 

22 Alcohol Administration Act, as 

23 added by section 511 of this Act. 

24 (ii) EXCEPTIONS.—Clause (i) shall 

25 not apply to— 


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1 (I) a common or contract carrier 

2 transporting the cannabis involved 

3 under a proper bill of lading or freight 

4 bill which states the quantity, source, 

5 and destination of the cannabis; 

6 (II) a person— 

7 (aa) who is licensed or oth8 erwise authorized by the State 

9 where the cannabis is found to 

10 account for and pay cannabis 

11 taxes imposed by such State; and 

12 (bb) who has complied with 

13 the accounting and payment re14 quirements relating to such li15 cense or authorization with re16 spect to the cannabis involved; 

17 (III) an officer, employee, or 

18 other agent of the United States, an 

19 Indian Tribe, or a State, or any de20 partment, agency, or instrumentality 

21 of the United States, an Indian Tribe, 

22 or a State (including any political sub23 division of an Indian Tribe or a State) 

24 having possession of the cannabis in 


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1 connection with the performance of of2 ficial duties; or 

3 (IV) a person— 

4 (aa) involved in the manu5 facture, marketing, or distribu6 tion of a drug containing can7 nabis that is otherwise in compli8 ance with State and Federal law; 

9 and 

10 (bb) who possesses cannabis 

11 in connection with the lawful ac12 tivities described in item (aa). 

13 (iii) PENALTY.—Any person who vio14 lates— 

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

16 (i) shall be imprisoned not more than 

17 1 year, fined not more than $50,000, 

18 or both; or 

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

20 clause (i) shall be imprisoned not 

21 more than 5 years, fined not more 

22 than $100,000, or both. 

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

24 subsection may be recovered by the Secretary of the 


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1 Treasury or by an action brought by the Attorney 

2 General in any court of competent jurisdiction. 

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

4 Attorney General upon the request of the Secretary 

5 of the Treasury to bring an action for an injunction 

6 against any person who violates, disobeys or dis7 regards any term or provision of this subtitle or of 

8 any lawful notice, order or regulation pursuant 

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

10 Treasury shall furnish the Attorney General with 

11 such material, evidentiary matter or proof as may be 

12 requested by the Attorney General for the prosecu13 tion of such an action. 

14 (b) TRACKING AND TRACING REGULATIONS.— 

15 (1) ISSUANCE OF TRACKING AND TRACING REG16 ULATIONS.— 

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

18 after the date of enactment of this Act, the Sec19 retary of the Treasury (referred to in this sec20 tion as the ‘‘Secretary’’), acting through the 

21 Administrator of the Alcohol, Tobacco, and 

22 Cannabis Tax and Trade Bureau and in coordi23 nation with the Secretary of Health and 

24 Human Services, shall issue regulations relating 


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1 to the tracking and tracing of cannabis prod2 ucts pursuant to paragraph (2). 

3 (B) GOOD FAITH CONSULTATION WITH IN4 DIAN TRIBES.—In issuing regulations under 

5 subparagraph (A), the Secretary, acting 

6 through the Administrator of the Alcohol, To7 bacco, and Cannabis Tax and Trade Bureau 

8 and in coordination with the Secretary of 

9 Health and Human Services, shall conduct good 

10 faith, meaningful, and timely consultations with 

11 Indian Tribes. 

12 (2) REGULATIONS CONCERNING RECORD13 KEEPING FOR TRACKING AND TRACING.— 

14 (A) IN GENERAL.—The Secretary shall 

15 promulgate regulations regarding the establish16 ment and maintenance of records by any person 

17 who manufactures, processes, transports, dis18 tributes, receives, packages, holds, exports, or 

19 imports cannabis products. 

20 (B) INSPECTION.—In promulgating the 

21 regulations described in subparagraph (A), the 

22 Secretary shall consider which records are need23 ed for inspection to monitor the movement of 

24 cannabis products from the point of production 

25 through distribution to retail outlets to assist in 


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1 investigating potential illicit trade, smuggling, 

2 or counterfeiting of cannabis products. 

3 (C) CODES.—The Secretary may require 

4 codes on the labels of cannabis products or 

5 other designs or devices for the purpose of 

6 tracking or tracing the cannabis product 

7 through the distribution system. 

8 (D) SIZE OF BUSINESS.—The Secretary 

9 shall take into account the size of a business in 

10 promulgating regulations under this section. 

11 (E) RECORDKEEPING BY RETAILERS.— 

12 The Secretary shall not require any retailer to 

13 maintain records relating to individual pur14 chasers of cannabis products for personal con15 sumption. 

16 (3) RECORDS INSPECTION.— 

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

18 reasonable belief that a cannabis product is 

19 part of an illicit trade or smuggling or is a 

20 counterfeit product, each person who manufac21 tures, processes, transports, distributes, re22 ceives, holds, packages, exports, or imports can23 nabis products shall, at the request of an officer 

24 or employee duly designated by the Secretary, 

25 permit such officer or employee, at reasonable 


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1 times and within reasonable limits and in a rea2 sonable manner, upon the presentation of ap3 propriate credentials and a written notice to 

4 such person, to have access to and copy all 

5 records (including financial records) relating to 

6 such article that are needed to assist the Sec7 retary in investigating potential illicit trade, 

8 smuggling, or counterfeiting of cannabis prod9 ucts. The Secretary shall not authorize an offi10 cer or employee of the government of any of the 

11 several States to exercise authority under the 

12 preceding sentence on Indian country without 

13 the express written consent of the Indian Tribe 

14 involved. 

15 (B) FAILURE TO COMPLY.— 

16 (i) COMPEL INSPECTIONS.—The dis17 trict courts of the United States shall have 

18 the authority, pursuant to a civil action 

19 brought by the Secretary, to compel access 

20 by any officer or employee duly designated 

21 by the Secretary to any relevant records 

22 described in subparagraph (A). 

23 (ii) PENALTY.—Any person who— 

24 (I) denies access to any relevant 

25 records described in subparagraph (A) 


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1 to any officer or employee duly des2 ignated by the Secretary; or 

3 (II) fails to comply with an order 

4 issued by a district court pursuant to 

5 clause (i), 

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

7 (4) KNOWLEDGE OF ILLEGAL TRANSACTION.— 

8 (A) NOTIFICATION.—If the manufacturer 

9 or distributor of a cannabis product has knowl10 edge which reasonably supports the conclusion 

11 that a cannabis product manufactured or dis12 tributed by such manufacturer or distributor 

13 that has left the control of such person may be 

14 or has been— 

15 (i) imported, exported, distributed, or 

16 offered for sale in interstate commerce by 

17 a person without paying duties or taxes re18 quired by Federal, Tribal, or State law; or 

19 (ii) imported, exported, distributed, or 

20 diverted for possible illicit marketing, 

21 the manufacturer or distributor shall promptly 

22 notify the Attorney General and the Secretary 

23 of such knowledge. 


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1 (B) KNOWLEDGE DEFINED.—For purposes 

2 of this paragraph, the term ‘‘knowledge’’ as ap3 plied to a manufacturer or distributor means— 

4 (i) the actual knowledge that the man5 ufacturer or distributor had; or 

6 (ii) the knowledge which a reasonable 

7 person would have had under like cir8 cumstances or which would have been ob9 tained upon the exercise of due care. 

10 (5) CONSULTATION.—In carrying out this sub11 section, the Secretary shall consult with the Attor12 ney General and the Commissioner of Food and 

13 Drugs, as appropriate. 

14 (6) CONSIDERATION OF STATE AND OTHER

15 PRECEDENT.—In promulgating the regulations de16 scribed in this subsection, the Secretary shall con17 sider— 

18 (A) recommendations and findings by the 

19 Cannabis Products Advisory Committee estab20 lished under section 1111 of the Federal Food, 

21 Drug, and Cosmetic Act; 

22 (B) current practices of States regarding 

23 cannabis and the practices of other regulated 

24 industries; and 


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1 (C) whether, during the 3-year period de2 scribed in section 505(b)(1), unique standards 

3 for cannabis specified for medical use under 

4 State law are necessary or appropriate. 

5 TITLE II—RESEARCH, TRAINING, 

6 AND PREVENTION 

7 Subtitle A—Public Health and 

8 Biomedical Research 

9 SEC. 201. SOCIETAL IMPACT OF CANNABIS LEGALIZATION 

10 STUDY. 

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

12 United States shall conduct an evaluation of the societal 

13 impact of the legalization by States of adult-use of can14 nabis. Such evaluation shall address, where information 

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

16 (1) Federal and State law enforcement activi17 ties, including— 

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

19 production, manufacture, and distribution of 

20 cannabis; and 

21 (B) diversion and seizures of cannabis. 

22 (2) Employment and the receipt of Federal wel23 fare assistance. 

24 (3) Changes in the utilization of health care, in25 cluding hospitalization related to methamphetamine 


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1 and narcotic use and the use of cannabis for medical 

2 purposes. 

3 (4) Analysis of tax revenue remitted to States 

4 resulting from legal cannabis sales. 

5 (5) Any additional areas identified by the 

6 Comptroller General of the United States. 

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

8 United States— 

9 (1) not later than 2 years after the date of en10 actment of this Act, shall brief the Committee on Fi11 nance, the Committee on Health, Education, Labor, 

12 and Pensions, and the Committee on the Judiciary 

13 of the Senate and the Committee on Ways and 

14 Means, the Committee on Energy and Commerce, 

15 and the Committee on the Judiciary of the House of 

16 Representatives on the preliminary findings of the 

17 evaluation under subsection (a); and 

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

19 preliminary briefing described in paragraph (1), sub20 mit a final report to such committees. 

21 SEC. 202. BIOMEDICAL RESEARCH ON CANNABIS. 

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

23 Human Services (referred to in this section as the ‘‘Sec24 retary’’), in consultation with the Director of the National 


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1 Institutes of Health, shall conduct or support research on 

2 the impacts of cannabis. 

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

4 under subsection (a) may include research on— 

5 (1) the effects of tetrahydrocannabinol on the 

6 human brain; 

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

8 specific diseases and conditions, including any im9 pact on chronic pain and post-traumatic stress dis10 order; 

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

12 (A) pulmonary function; 

13 (B) cardiovascular events; 

14 (C) cancer, including testicular, ovarian, 

15 transitional cell, and head, neck, and oral can16 cers, and chronic illnesses; 

17 (D) mania; 

18 (E) psychosis; 

19 (F) cognitive effects; and 

20 (G) cannabinoid hyperemesis syndrome; 

21 and 

22 (4) the identification of additional medical ben23 efits, harms, and uses of cannabis. 


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1 (c) CONSIDERATIONS.—In conducting or supporting 

2 the research under subsection (a), the Secretary may con3 sider— 

4 (1) varying forms of cannabis, including— 

5 (A) full plants and extracts; and 

6 (B) different types of cannabis with signifi7 cant variation in phenotypic traits and various 

8 ratios of tetrahydrocannabinol and cannabidiol 

9 in chemical composition; and 

10 (2) varying methods of cannabis delivery, in11 cluding combustible and non-combustible inhalation 

12 and ingestion. 

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

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

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

16 to the Committee on Health, Education, Labor, and Pen17 sions and the Committee on Appropriations of the Senate 

18 and the Committee on Energy and Commerce and the 

19 Committee on Appropriations of the House of Representa20 tives, a report that includes an overview of the research 

21 conducted and supported under this section. 

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

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

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


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1 each of fiscal years 2025 through 2029 to carry out this 

2 section. 

3 SEC. 203. PUBLIC HEALTH SURVEILLANCE AND DATA COL4 LECTION. 

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

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

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

8 ADVERSE HEALTH EFFECTS OF CANNABIS

9 USE’’ after ‘‘SUBSTANCES’’; 

10 (2) in subsection (a)— 

11 (A) in paragraph (2)— 

12 (i) in subparagraph (C) by inserting 

13 ‘‘and adverse health effects of cannabis 

14 use’’ before the period; and 

15 (ii) in subparagraph (D) by inserting 

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

17 the period; and 

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

19 collect data to better understand the use and 

20 health effects of cannabis, stimulants, and 

21 polysubstances, and’’ after ‘‘conduct studies 

22 and evaluations’’; 

23 (3) in subsection (e), by striking ‘‘$496,000,000 

24 for each of fiscal years 2019 through 2023’’ and inVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 serting ‘‘$596,000,000 for each of fiscal years 2025 

2 through 2029’’; and 

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

4 ‘‘(f) ADDITIONAL FUNDING.—In addition to amounts 

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

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

7 for each of fiscal years 2025 through 2029 to carry out 

8 this section.’’. 

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

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

11 (42 U.S.C. 290dd et seq.) is amended by adding at the 

12 end the following: 

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

14 USE. 

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

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

17 cooperative agreements to eligible entities to prevent and 

18 reduce underage cannabis use. 

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

20 under this section, an entity shall be a State, political sub21 division of a State, Indian Tribe or Tribal organization, 

22 an urban Indian organization, a nonprofit community23 based organization, or any other nonprofit entity the Sec24 retary determines appropriate. 


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

2 award under this subsection shall use funds from such 

3 award to— 

4 ‘‘(1) establish, enhance, and support culturally5 and linguistically-appropriate programs, including 

6 community-based, school-based, and higher-edu7 cation based programs, and programs that target 

8 youth within the juvenile justice and child welfare 

9 systems, that offer screening, prevention, early inter10 vention, diagnosis, treatment, referral, and recovery 

11 support services related to underage cannabis use; 

12 ‘‘(2) design, test, evaluate, and disseminate evi13 dence-based and evidence-informed strategies to 

14 maximize the effectiveness of community-wide ap15 proaches to preventing and reducing underage can16 nabis use; 

17 ‘‘(3) educate children, adolescents, youth, par18 ents, health care providers, and communities about 

19 the dangers of underage cannabis use, including im20 paired driving due to cannabis use; 

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

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

23 ‘‘(5) strengthen collaboration among commu24 nities, the Federal Government, and State, local, 


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1 and Tribal governments to prevent underage can2 nabis use; 

3 ‘‘(6) address community norms regarding un4 derage cannabis use, reduce opportunities for under5 age cannabis use, and reduce the prevalence of nega6 tive consequences associated with underage cannabis 

7 use; and 

8 ‘‘(7) support other evidence-based and evidence9 informed practices to reduce underage cannabis use, 

10 as determined by the Secretary. 

11 ‘‘(d) SUPPLEMENT NOT SUPPLANT.—Funds award12 ed under this section shall supplement, and not supplant, 

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

14 and reduce underage cannabis use. 

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

16 under this section, the Secretary shall give priority to eligi17 ble entities that serve medically underserved communities, 

18 communities with high rates of underage cannabis use, 

19 and communities that have historically experienced dis20 proportionate arrest and conviction rates related to the 

21 sale, possession, use, manufacture, or cultivation of can22 nabis (but not counting convictions involving distribution 

23 of cannabis to a minor). 

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

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


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

2 each of fiscal years 2025 through 2029 to carry out this 

3 section. 

4 ‘‘(g) DEFINITIONS.—For the purposes of this sec5 tion— 

6 ‘‘(1) the terms ‘Indian Tribe’ and ‘Tribal orga7 nization’ have the meanings given such terms in sec8 tion 4 of the Indian Self-Determination and Edu9 cation Assistance Act; and 

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

11 the meaning given such term in section 4 of the In12 dian Health Care Improvement Act.’’. 

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

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

15 Human Services (referred to in this section as the ‘‘Sec16 retary’’), in consultation with the Administrator of the 

17 National Highway Traffic Safety Administration, shall 

18 fund and oversee the production, broadcasting, and eval19 uation of a national public service media campaign to pre20 vent and reduce underage cannabis use and cannabis im21 paired driving. Such campaign shall— 

22 (1) educate the public about— 

23 (A) the negative consequences of underage 

24 cannabis use and cannabis impaired driving; 

25 and 


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1 (B) the public health and safety benefits of 

2 evidence-based and evidence-informed policies to 

3 reduce underage cannabis use and cannabis im4 paired driving, and build community and paren5 tal support for, and cooperation with, enforce6 ment of such policies; and 

7 (2) be conducted— 

8 (A) through multiple media sources; 

9 (B) in a manner that is culturally and lin10 guistically appropriate; and 

11 (C) in a manner that reflects best practices 

12 in public health communication, including in ac13 cessible formats. 

14 (3) CONSULTATION REQUIREMENT.—In car15 rying out the campaign under this subsection, the 

16 Secretary shall consult with interested parties, in17 cluding medical, public health, consumer, parent, 

18 disability, law enforcement, community-based, and 

19 other stakeholders, as determined by the Secretary. 

20 (b) EDUCATION AND AWARENESS CAMPAIGN FOR

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

22 heads of other appropriate departments and agencies and 

23 working through existing programs and activities, as ap24 propriate, shall advance the education and awareness of 

25 the public (including health care providers, consumers, 


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1 workplaces, and other appropriate entities) regarding can2 nabis use. The education and awareness campaigns under 

3 this subsection shall address— 

4 (1) any dangers and negative consequences of 

5 cannabis use; 

6 (2) awareness and prevention of cannabis use 

7 disorder; 

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

9 including with respect to the use of cannabis in dif10 ferent circumstances such as the workplace and 

11 while operating motor vehicles; 

12 (4) the effects of cannabis when mixed with 

13 other substances; and 

14 (5) other relevant public health or biomedical 

15 research, as the Secretary determines appropriate. 

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

17 submit an annual report to the Committee on Health, 

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

19 Committee on Energy and Commerce of the House of 

20 Representatives detailing the production, broadcasting, 

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

22 (b). Such reports shall include— 

23 (1) details regarding the effectiveness of such 

24 campaigns in reducing underage cannabis use; 


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

2 expanded campaign under either such subsection; 

3 and 

4 (3) details regarding the consultation the Sec5 retary engaged in pursuant to subsection (a)(2). 

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

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

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

9 of fiscal years 2025 through 2029 to carry out this sec10 tion. 

11 SEC. 206. INCREASING AVAILABILITY OF CANNABIS PROD12 UCTS FOR RESEARCH PURPOSES. 

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

14 Human Services (referred to in this section as the ‘‘Sec15 retary’’), acting through the Director of the National In16 stitutes of Health and in collaboration with the Commis17 sioner of Food and Drugs and the Attorney General, shall 

18 take steps to increase the availability and diversity of re19 search grade cannabis products for intramural and extra20 mural research activities, including cannabis products with 

21 varied cannabinoid concentrations and cannabis products 

22 that reflect regional differences in products available to 

23 be sold directly to consumers. 

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

25 Secretary may develop guidance clarifying how entities enVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 gaged in extramural research supported by the Federal 

2 Government may access cannabis products available to be 

3 sold directly to consumers. 

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

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

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

7 and Pensions and the Committee on the Judiciary of the 

8 Senate and the Committee on Energy and Commerce and 

9 the Committee on the Judiciary of the House of Rep10 resentatives on the activities under subsection (a). 

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

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

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

14 each of fiscal years 2025 through 2029 to carry out this 

15 section. 

16 SEC. 207. TRANS-NIH CANNABIS CONSORTIUM. 

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

18 (42 U.S.C. 281 et seq.) is amended by inserting at the 

19 end the following: 

20 ‘‘SEC. 404P. TRANS-NIH CANNABIS CONSORTIUM. 

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

22 establish and maintain a consortium to be known as the 

23 Trans-NIH Cannabis Research Consortium (referred to in 

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


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1 research programs across the National Institutes of 

2 Health. 

3 ‘‘(b) MEMBERSHIP.—The members of the Consor4 tium shall be appointed by the Director of NIH and con5 sist of representatives of multiple national research insti6 tutes and national centers. 

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

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

9 the Director’s designee). 

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

11 programs across the National Institutes of Health, the 

12 Consortium shall— 

13 ‘‘(1) establish cannabis research priorities; 

14 ‘‘(2) identify gaps and opportunities for re15 search collaborations involving multiple national re16 search institutes and national centers; and 

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

18 generation of cannabis researchers. 

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

20 regularly with external experts in the field of cannabis re21 search, as appropriate, including industry, patient organi22 zations, and other stakeholders. 

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

24 date of enactment of the Cannabis Administration and 

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1 tium shall submit to the Committee on Health, Education, 

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

3 Energy and Commerce of the House of Representatives, 

4 and make publicly available on the website of the National 

5 Institutes of Health, a report on— 

6 ‘‘(1) any research project involving cannabis 

7 and involving more than one national research insti8 tute or national center that was supported during 

9 the review period; 

10 ‘‘(2) any strategic initiatives that include a sig11 nificant component related to cannabis; 

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

13 researchers focused in cannabis research, including 

14 specific numbers of awards and amount of funding, 

15 made during the review period; 

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

17 early-career researchers, including demographic de18 tails indicating the proportion of recipients from 

19 populations that have been underrepresented in can20 nabis research; and 

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

22 NIH determines appropriate.’’. 


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1 SEC. 208. CANNABIS RESEARCH INTERAGENCY ADVISORY 

2 COMMITTEE. 

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

4 Department of Health and Human Services a Cannabis 

5 Research Interagency Advisory Committee (referred to in 

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

7 of coordinating— 

8 (1) Federal research activities relating to can9 nabis; and 

10 (2) aspects of all Federal programs and activi11 ties relating to cannabis research, in order to ensure 

12 the adequacy and technical soundness of such pro13 grams and activities, to minimize barriers to such 

14 programs and activities, to provide for the full com15 munication and exchange of information necessary 

16 to maintain adequate coordination of such programs 

17 and activities. 

18 (b) MEMBERS.—The Advisory Committee established 

19 under subsection (a) shall consist of the heads of the fol20 lowing agencies or their designees: 

21 (1) The National Institutes of Health. 

22 (2) The Centers for Disease Control and Pre23 vention. 

24 (3) The Food and Drug Administration. 

25 (4) The Substance Abuse and Mental Health 

26 Services Administration. 


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1 (5) The Office of the Assistant Secretary of 

2 Health. 

3 (6) The Office of Minority Health. 

4 (7) The Drug Enforcement Administration. 

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

6 and Trade Bureau (as so redesignated by section 

7 102 of this Act). 

8 (9) The Department of Transportation. 

9 (10) Any other agency with subject matter ex10 pertise that the Secretary of Health and Human 

11 Services determines appropriate to advance research 

12 on cannabis. 

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

14 under this section, the Advisory Committee shall— 

15 (1) monitor cannabis research across all rel16 evant Federal departments and agencies, including 

17 coordination of Federal activities with respect to 

18 cannabis; 

19 (2) develop a summary of advances in cannabis 

20 research; 

21 (3) identify barriers to conducting or sup22 porting cannabis research; 

23 (4) make recommendations to the Secretary of 

24 Health and Human Services regarding any appro25 priate changes to such activities; 


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1 (5) make recommendations to the Secretary of 

2 Health and Human Services regarding public par3 ticipation in decisions relating to cannabis research, 

4 and the process by which public feedback can be bet5 ter integrated into such decisions; 

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

7 and support for, cannabis research, which shall in8 clude— 

9 (A) proposed budgetary requirements; and 

10 (B) recommendations to ensure that can11 nabis research of the Department of Health and 

12 Human Services and of other Federal depart13 ments and agencies are not unnecessarily dupli14 cative; and 

15 (7) submit to Congress and the President— 

16 (A) an annual update on the summary of 

17 advances described in paragraph (2); and 

18 (B) an annual update to the strategic plan 

19 described in paragraph (5), including any 

20 progress made in achieving the goals outlined in 

21 such strategic plan. 

22 SEC. 209. AWARDS FOR CANNABIS RESEARCH. 

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

24 Human Services (referred to in this section as the ‘‘Sec25 retary’’) shall award grants, contracts, or cooperative 


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1 agreements to public and nonprofit entities (including con2 sortiums of such entities) to conduct or support research 

3 on short- and long-term health effects of cannabis, consid4 ering beneficial and harmful effects and public health im5 pacts. Such research may— 

6 (1) consider the etiology, epidemiology, and 

7 health effects of cannabis use in at-risk or under re8 searched populations, such as pediatric and older 

9 populations, individuals with chronic illnesses, preg10 nant and lactating women and their infants and chil11 dren, and heavy cannabis users; 

12 (2) consider the pharmacokinetic and 

13 pharmacodynamic properties of cannabis, modes of 

14 delivery, different concentrations, in various popu15 lations, including the dose-response relationships of 

16 cannabis and tetrahydrocannabinol or other 

17 cannabinoids; 

18 (3) consider the harms and benefits associated 

19 with understudied cannabis products, such as 

20 edibles, concentrates, and topical products; 

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

22 and benefits associated with exposure to chemicals 

23 and other products commonly involved in the grow24 ing, possessing, and selling of cannabis; 


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1 (5) utilize clinical trials on the potential bene2 ficial and harmful health effects of using different 

3 forms of cannabis, such as inhaled whole cannabis 

4 plant and oral cannabis; 

5 (6) seek to characterize the health effects of 

6 cannabis on unstudied and understudied health 

7 endpoints, such as epilepsy in pediatric populations, 

8 symptoms of posttraumatic stress disorder, child9 hood and adult cancers, cannabis-related overdoses 

10 and poisonings, and other high-priority health 

11 endpoints; and 

12 (7) provide support for the development of 

13 novel diagnostic technologies that allow for rapid, 

14 accurate, and noninvasive assessment of cannabis 

15 exposure and impairment. 

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

17 under this section, an entity shall submit an application 

18 to the Secretary at such time, in such manner, and con19 taining such information as the Secretary may require. 

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

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

22 that is a minority-serving institution (defined, for pur23 poses of this subsection, as an institution and program 

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

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1 scribed in section 371(a) of such Act (20 U.S.C. 

2 1067q(a))). 

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

4 section, the Secretary, to the extent practicable, may en5 sure equitable distribution of awards among the geo6 graphical regions of the United States. 

7 (e) REPORTING.— 

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

9 consortium of such entities, that receives an award 

10 under this section shall submit an annual report to 

11 the Secretary on the activities conducted under such 

12 award, and other information as the Secretary may 

13 require. 

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

15 years after the date of enactment of this Act and 

16 every 5 years thereafter, the Secretary shall submit 

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

18 Pensions of the Senate and the Committee on En19 ergy and Commerce of the House of Representatives 

20 a report that provides a summary of the activities 

21 associated with awards made under this section. 

22 (3) PUBLIC AVAILABILITY.—The Secretary 

23 shall make reports submitted under paragraph (2) 

24 publicly available on the website of the Department 

25 of Health and Human Services. 


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

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

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

4 each of fiscal years 2025 through 2029 to carry out this 

5 section. 

6 SEC. 210. DEPARTMENT OF VETERANS AFFAIRS CLINICAL 

7 TRIALS ON THE EFFECTS OF CANNABIS ON 

8 CERTAIN HEALTH OUTCOMES OF VETERANS 

9 WITH CHRONIC PAIN AND POST-TRAUMATIC 

10 STRESS DISORDER. 

11 (a) CLINICAL TRIALS REQUIRED.— 

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

13 Affairs shall carry out a series of clinical trials on 

14 the effects of medical-grade cannabis on the health 

15 outcomes of covered veterans diagnosed with chronic 

16 pain and covered veterans diagnosed with post-trau17 matic stress disorder. 

18 (2) REQUIRED ELEMENTS.—The clinical trials 

19 required by paragraph (1) shall include— 

20 (A) with respect to covered veterans diag21 nosed with chronic pain, an evaluation of the 

22 effects of the use of cannabis on— 

23 (i) osteopathic pain (including pain in24 tensity and pain-related outcomes); 


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1 (ii) the reduction or increase in opioid 

2 use or dosage; 

3 (iii) the reduction or increase in 

4 benzodiazepine use or dosage; 

5 (iv) the reduction or increase in alco6 hol use; 

7 (v) inflammation; 

8 (vi) sleep quality; 

9 (vii) agitation; and 

10 (viii) quality of life; and 

11 (B) with respect to covered veterans diag12 nosed with post-traumatic stress disorder, an 

13 evaluation of the effects of the use of cannabis 

14 on— 

15 (i) the symptoms of post-traumatic 

16 stress disorder (PTSD) as established by 

17 or derived from the clinician administered 

18 PTSD scale, the PTSD checklist, the 

19 PTSD symptom scale, the post-traumatic 

20 diagnostic scale, and other applicable 

21 methods of evaluating symptoms of post22 traumatic stress disorder; 

23 (ii) the reduction or increase in 

24 benzodiazepine use or dosage; 


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1 (iii) the reduction or increase in alco2 hol use; 

3 (iv) mood; 

4 (v) anxiety; 

5 (vi) social functioning; 

6 (vii) agitation; 

7 (viii) suicidal ideation; and 

8 (ix) sleep quality, including frequency 

9 of nightmares and night terrors. 

10 (3) OPTIONAL ELEMENTS.—The clinical trials 

11 required by paragraph (1) may include an evaluation 

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

13 pain and post-traumatic stress disorder on— 

14 (A) pulmonary function; 

15 (B) cardiovascular events; 

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

17 (D) testicular cancer; 

18 (E) ovarian cancer; 

19 (F) transitional cell cancer; 

20 (G) intestinal inflammation; 

21 (H) motor vehicle accidents; 

22 (I) mania; 

23 (J) psychosis; 

24 (K) cognitive effects; 

25 (L) cannabinoid hyperemesis syndrome; 


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1 (M) neuropathy; 

2 (N) spasticity; 

3 (O) substance use disorder; or 

4 (P) mental health disorder. 

5 (b) LONG-TERM OBSERVATIONAL STUDY.—The Sec6 retary may carry out a long-term observational study of 

7 the participants in the clinical trials required by sub8 section (a). 

9 (c) TYPE OF CANNABIS.— 

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

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

12 study varying forms of cannabis, including whole 

13 plant raw material and extracts. 

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

15 of cannabis required under paragraph (1), the Sec16 retary shall study not fewer than seven unique plant 

17 cultivars with ratios of tetrahydrocannabinol to 

18 cannabidiol in each of the following categories: 

19 (A) Less than 1:5. 

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

21 (C) Approximately 1:2. 

22 (D) Approximately 1:1. 

23 (E) Approximately 2:1. 

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

25 (G) More than 5:1. 


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1 (d) USE OF CONTROL AND EXPERIMENTAL

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

3 shall include both a control group and an experimental 

4 group that shall— 

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

6 (2) represent the demographics of the veteran 

7 population, as determined by the most recent data 

8 from the American Community Survey of the Bu9 reau of the Census that is available prior to the 

10 commencement of the clinical trials. 

11 (e) LIMITATION ON ENROLLMENT OF CERTAIN VET12 ERANS.—In enrolling veterans in a clinical trial under sub13 section (a), the Secretary shall avoid enrolling veterans 

14 who— 

15 (1) have existing substance use disorder or are 

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

17 (2) have contraindications to medicinal can18 nabis, which may include— 

19 (A) veterans with acute psychosis or at20 risk of psychosis; 

21 (B) veterans for whom cannabis is contra22 indicated based on current medications taken, 

23 prescribed and nonprescribed; 

24 (C) veterans with severe cardiovascular, 

25 immunological, liver, or kidney disease; and 


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1 (D) veterans who are pregnant or 

2 breastfeeding. 

3 (f) DATA PRESERVATION.—The clinical trials re4 quired by subsection (a) shall include a mechanism to en5 sure the preservation of all data, including all data sets, 

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

7 that will facilitate further research. 

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

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

10 shall— 

11 (1) develop a plan to implement this section 

12 and submit such plan to the Committee on Veterans’ 

13 Affairs of the Senate and the Committee on Vet14 erans’ Affairs of the House of Representatives; and 

15 (2) issue any requests for proposals the Sec16 retary determines appropriate for such implementa17 tion. 

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

19 or entitlement of a covered veteran to any other benefit 

20 under the laws administered by the Secretary or any other 

21 provision of law shall not be affected by the participation 

22 of the covered veteran in a clinical trial under subsection 

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

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

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


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1 Secretary shall submit periodically, but not less frequently 

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

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

4 House of Representatives reports on the implementation 

5 of this section. 

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

7 the term ‘‘covered veteran’’ means a veteran who is en8 rolled in the patient enrollment system of the Department 

9 of Veterans Affairs established and operated under section 

10 1705(a) of title 38, United States Code. 

11 SEC. 211. CANNABIS RESEARCH INFRASTRUCTURE 

12 GRANTS. 

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

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

15 the following: 

16 ‘‘PART BB—CANNABIS RESEARCH 

17 INFRASTRUCTURE GRANT PROGRAM 

18 ‘‘SEC. 899. CANNABIS RESEARCH INFRASTRUCTURE GRANT 

19 PROGRAM. 

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

21 with the Secretary of Health and Human Services and, 

22 as appropriate, with other relevant Federal agencies, shall 

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

24 higher education to enable such institutions to develop or 

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1 nabis research, including the cultivation of cannabis for 

2 research purposes. 

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

4 grant under this section, an institution of higher education 

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

6 in such manner, and containing such information as the 

7 Secretary may require, including— 

8 ‘‘(1) a description of the projects that the insti9 tution of higher education plans to carry out with 

10 grant funds; and 

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

12 infrastructure needs of the institution of higher edu13 cation. 

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

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

16 ‘‘(1) institutions of higher education described 

17 in section 371(a); 

18 ‘‘(2) under-resourced institutions of higher edu19 cation, including community colleges; and 

20 ‘‘(3) institutions of higher education with expe21 rience in conducting or supporting cannabis research 

22 or developing academic courses or programs for stu23 dents in the cannabis industry. 

24 ‘‘(d) USE OF FUNDS.—An institution of higher edu25 cation that receives a grant under this section shall use 


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1 the grant funds to develop or enhance the necessary infra2 structure for exploratory cannabis research, including— 

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

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

5 laboratory equipment; 

6 ‘‘(3) constructing or upgrading cultivation or 

7 laboratory facilities; 

8 ‘‘(4) purchasing or enhancing storage and secu9 rity needs; 

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

11 training to conduct or support research, such as 

12 policies and training to safely handle and store sub13 stances; 

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

15 certificates or registrations to handle certain sub16 stances; or 

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

18 developing or enhancing the cannabis research infra19 structure of the institution of higher education, in20 cluding for training and support purposes. 

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

22 of law, activities supported by grants under this section 

23 shall not be considered violations of section 120 for the 

24 purposes of enforcing or assessing compliance with that 

25 section. 


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

2 ‘‘(1) COMMUNITY COLLEGE.—The term ‘com3 munity college’ means— 

4 ‘‘(A) a public institution of higher edu5 cation, including additional locations, at which 

6 the highest awarded degree, or the predomi7 nantly awarded degree, is an associate degree; 

8 or 

9 ‘‘(B) a Tribal College or University (as de10 fined in section 316). 

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

12 The term ‘institution of higher education’ has the 

13 meaning given that term in section 101. 

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

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

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

17 each of fiscal years 2025 through 2029 to carry out this 

18 section.’’. 

19 Subtitle B—Cannabis-Impaired 

20 Driving Prevention 

21 SEC. 221. DEFINITIONS. 

22 In this subtitle: 

23 (1) ADMINISTRATOR.—The term ‘‘Adminis24 trator’’ means the Administrator of the National 

25 Highway Traffic Safety Administration. 


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

2 the Secretary of Transportation. 

3 (3) THC.—The term ‘‘THC’’ means 

4 tetrahydrocannabinol. 

5 SEC. 222. CANNABIS-IMPAIRED DRIVING RESEARCH. 

6 (a) CANNABIS-IMPAIRED DRIVING DATA.— 

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

8 and, as appropriate, share with the Secretary of 

9 Health and Human Services, data relating to can10 nabis-impaired driving, or a combination of cannabis 

11 and another substance, including through the collec12 tion of crash data specific to crashes involving driv13 ers with— 

14 (A) THC in their system; or 

15 (B) a combination of THC and another 

16 substance in their system. 

17 (2) NATIONAL ROADSIDE SURVEY.— 

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

19 after the date of enactment of this Act, the Ad20 ministrator shall initiate a National Roadside 

21 Survey to collect data on drivers with THC in 

22 their system. 

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

24 the date of enactment of this Act, the Secretary 

25 shall submit to the Committees on Commerce, 


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1 Science, and Transportation, Environment and 

2 Public Works, and Health, Education, Labor, 

3 and Pensions of the Senate and the Committee 

4 on Transportation and Infrastructure of the 

5 House of Representatives a report summarizing 

6 the data acquired, and conclusions drawn, from 

7 the National Roadside Survey required under 

8 subparagraph (A). 

9 (b) RESEARCH ON RISKS OF CANNABIS-IMPAIRED

10 DRIVING.— 

11 (1) STUDY REQUIRED.— 

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

13 after the date of enactment of this Act, the Sec14 retary shall carry out a study to evaluate and 

15 quantify the risks of cannabis-impaired driving. 

16 (B) REQUIREMENTS.—The study required 

17 under subparagraph (A) shall analyze— 

18 (i) whether there is an increased like19 lihood of crashing a motor vehicle after re20 cent cannabis use; 

21 (ii) the effect of cannabis on driving 

22 behavior; 

23 (iii) whether there is a correlation be24 tween THC level (as tested in oral fluids) 

25 and level of impairment; 


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1 (iv) whether the current Standard 

2 Field Sobriety Test developed by the Na3 tional Highway Traffic Safety Administra4 tion accurately identifies cannabis impair5 ment; 

6 (v) whether driving behavior changes 

7 depending on frequency of cannabis use; 

8 (vi) whether there are any potential 

9 increased risks associated with using can10 nabis together with another substance; and 

11 (vii) any other data necessary to im12 prove safe driving outcomes, as determined 

13 by the Secretary. 

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

15 date of enactment of this Act, and annually there16 after until the date on which the study required 

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

18 submit to the Committees on Commerce, Science, 

19 and Transportation, Environment and Public Works, 

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

21 Senate and the Committee on Transportation and 

22 Infrastructure of the House of Representatives a re23 port summarizing the data acquired, and conclusions 

24 drawn, from the study required under paragraph 

25 (1). 


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1 SEC. 223. DOT CANNABIS-IMPAIRED DRIVING PREVENTION 

2 PROGRAMS. 

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

4 implement data-driven strategies to educate the public 

5 about the dangers of cannabis-impaired driving, which 

6 shall include the following: 

7 (1) CANNABIS-IMPAIRED DRIVING USE PREVEN8 TION BEST PRACTICES.— 

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

10 after the date of enactment of this Act, the Sec11 retary shall develop and issue best practices for 

12 States and communities to prevent cannabis-im13 paired driving, including impaired driving in14 volving the use of cannabis and another sub15 stance and practices targeting drivers under the 

16 age of 21, in consultation with the Director of 

17 the Centers for Disease Control and Prevention, 

18 the Secretary of Health and Human Services, 

19 and the heads of other Federal agencies as ap20 propriate. 

21 (B) UPDATES.—Not less frequently than 

22 biannually, the Secretary shall update and re23 issue the best practices required under subpara24 graph (A) as new research and data becomes 

25 available. 


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1 (2) CANNABIS-IMPAIRED DRIVING USE PREVEN2 TION CAMPAIGNS.—Not later than 2 years after the 

3 date of enactment of this Act, the Secretary shall es4 tablish and carry out national campaigns to prevent 

5 cannabis-impaired driving, including— 

6 (A) cannabis-impaired driving involving the 

7 use of cannabis and another substance; and 

8 (B) cannabis-impaired driving among driv9 ers under the age of 21. 

10 (b) CAMPAIGN EVALUATION.—Not less frequently 

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

12 effectiveness of the campaigns required under subsection 

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

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

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

16 (1) collecting data, including behavioral data, 

17 and comparing that data from before and after the 

18 campaigns; 

19 (2)(A) engaging with stakeholders that were in20 volved in the campaigns; and 

21 (B) analyzing feedback from those stakeholders 

22 on what the stakeholders saw as strengths and 

23 weaknesses of the campaigns; 

24 (3) determining whether the campaigns accom25 plished the objectives the Secretary set out to acVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 complish through analysis of data relating to the 

2 campaigns; and 

3 (4) any other factors the Secretary determines 

4 appropriate included in the document of the Na5 tional Highway Traffic Safety Administration enti6 tled ‘‘The Art of Appropriate Evaluation: A Guide 

7 for Highway Safety Program Managers’’ and dated 

8 December 2008 (or a successor document). 

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

10 on which the Secretary completes an evaluation conducted 

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

12 Committees on Commerce, Science, and Transportation, 

13 Environment and Public Works, and Health, Education, 

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

15 Transportation and Infrastructure of the House of Rep16 resentatives a report that— 

17 (1) summarizes the data collected and provides 

18 the analysis of the data from an evaluation con19 ducted under subsection (b); 

20 (2) includes recommendations for future im21 paired driving campaigns; and 

22 (3) includes any determinations that a national 

23 campaign or an activity carried out by a State using 

24 a grant awarded under section 409 of title 23, 


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1 United States Code, is ineffective at preventing can2 nabis-impaired driving. 

3 SEC. 224. STATE CANNABIS-IMPAIRED DRIVING PREVEN4 TION GRANT PROGRAM. 

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

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

7 following: 

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

9 grant program 

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

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

12 meaning given the term in subsection (tt) of section 

13 201 of the Federal Food, Drug, and Cosmetic Act 

14 (21 U.S.C. 321). 

15 ‘‘(2) GRANT PROGRAM.—The term ‘grant pro16 gram’ means the grant program established under 

17 subsection (b). 

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

19 given the term in section 221 of the Cannabis Ad20 ministration and Opportunity Act. 

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

22 the date of enactment of the Cannabis Administration and 

23 Opportunity Act, the Secretary, acting through the Ad24 ministrator of the National Highway Traffic Safety Ad25 ministration, shall establish a program to provide grants 


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

2 programs to prevent impaired driving due to cannabis use. 

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

4 grant under this section to any State that— 

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

6 funds in accordance with a highway safety program 

7 under section 402, including how the State will im8 plement the best practices developed by the Sec9 retary under section 223(a)(1) of the Cannabis Ad10 ministration and Opportunity Act; and 

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

12 determined by the Secretary, to assist with the eval13 uation of the effectiveness of the eligible activities 

14 described in subsection (d). 

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

16 awarded under this section for the following activities: 

17 ‘‘(1) Enforcement activities, including— 

18 ‘‘(A) to train public safety personnel to de19 tect impaired driving due to the use of cannabis 

20 or a combination of cannabis and another sub21 stance; 

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

23 driving toxicology testing laboratories in the 

24 State to support impaired driving investiga25 tions, including to purchase equipment, hire 


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1 staff, provide training, and improve procedures, 

2 including to improve toxicology testing stand3 ards to be consistent with the standards con4 tained in the document of the National Safety 

5 Council entitled ‘Recommendations for Toxi6 cological Investigation of Drug-Impaired Driv7 ing and Motor Vehicle Fatalities–2021 Update’ 

8 (or a successor document); 

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

10 driving assessment programs or other tools de11 signed to increase the probability of identifying 

12 the recidivism risk of an individual convicted of 

13 driving under the influence of cannabis, or a 

14 combination of cannabis and another substance, 

15 and to determine the most effective mental 

16 health or substance abuse treatment or sanction 

17 that will reduce that risk; 

18 ‘‘(D) to develop and implement high-visi19 bility enforcement efforts relating to cannabis20 impaired driving; and 

21 ‘‘(E) for court support of high-visibility en22 forcement efforts, to train and educate criminal 

23 justice professionals (including law enforcement 

24 personnel, prosecutors, judges, and probation 

25 officers) to assist those professionals in— 


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1 ‘‘(i) handling cannabis-impaired driv2 ing cases; 

3 ‘‘(ii) hiring traffic safety resource 

4 prosecutors; 

5 ‘‘(iii) hiring judicial outreach liaisons; 

6 and 

7 ‘‘(iv) establishing driving while intoxi8 cated courts. 

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

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

11 cannabis, drugs, or multiple substances by driv12 ers, including the prevalence of the use of those 

13 substances among drivers arrested for impaired 

14 driving; and 

15 ‘‘(B) to increase drug testing and report16 ing for all fatal crashes and serious injuries to 

17 better understand the scope of cannabis-im18 paired driving, or a combination of cannabis 

19 and another substance. 

20 ‘‘(3) Education activities, including— 

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

22 campaigns to better educate the public about 

23 the harms associated with cannabis-impaired 

24 driving, including impaired driving associated 


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1 with the use of cannabis and another substance; 

2 and 

3 ‘‘(B) to participate in national campaigns 

4 organized by the Secretary under section 

5 223(a)(2) of the Cannabis Administration and 

6 Opportunity Act. 

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

8 use of grant funds for an activity described in subsection 

9 (d) if the Secretary determines that the activity is ineffec10 tive at preventing cannabis-impaired driving after con11 ducting an evaluation required under section 223(b) of the 

12 Cannabis Administration and Opportunity Act. 

13 ‘‘(f) GRANT AMOUNTS.— 

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

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

16 shall be in proportion to the apportionment of funds 

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

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

19 of the funds allocated to a State under this section 

20 shall be used to carry out activities described in sub21 section (d)(1)(B). 

22 ‘‘(g) FEDERAL SHARE.— 

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

24 after the date on which the grant program is estab25 lished under subsection (b), and each fiscal year 


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1 thereafter for a State that meets the condition de2 scribed in paragraph (2)(B) during that fiscal year, 

3 the Federal share of the costs of activities carried 

4 out with a grant awarded under the grant program 

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

6 State is awarded a grant. 

7 ‘‘(2) DECREASED FEDERAL SHARE.— 

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

9 does not meet the condition described in sub10 paragraph (B), the Federal share of the costs 

11 of activities carried out with a grant awarded 

12 under the grant program shall be— 

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

14 year after the date on which the grant pro15 gram is established under subsection (b); 

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

17 after that date; and 

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

19 year after that date and each fiscal year 

20 thereafter. 

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

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

23 that the State shall implement an open con24 tainer law relating to cannabis products. 


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

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

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

4 each of fiscal years 2025 through 2029 to carry out this 

5 section.’’. 

6 (b) CLERICAL AMENDMENT.—The analysis for chap7 ter 4 of title 23, United States Code, is amended by insert8 ing after the item relating to section 408 the following: 

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

9 SEC. 225. NATIONAL CANNABIS IMPAIRMENT STANDARD. 

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

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

12 thereafter, the Secretary shall make a determination as 

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

14 standard for determining impairment for cannabis-im15 paired driving. 

16 (b) RULEMAKING REQUIRED.—If the Secretary de17 termines that establishing a national standard relating to 

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

19 the Secretary shall, not later than 1 year after that deter20 mination, promulgate regulations establishing a model 

21 marijuana impairment standard for States. 

22 SEC. 226. FUNDING. 

23 In addition to amounts otherwise available, there is 

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1 wise appropriated, $30,000,000 for each of fiscal years 

2 2025 through 2029 to carry out sections 222 and 223. 

3 TITLE III—RESTORATIVE 

4 JUSTICE AND OPPORTUNITY 

5 Subtitle A—Opportunity Trust 

6 Fund Programs 

7 SEC. 301. OPPORTUNITY TRUST FUND PROGRAMS. 

8 (a) CANNABIS JUSTICE OFFICE; COMMUNITY REIN9 VESTMENT GRANT PROGRAM.— 

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

11 title I of the Omnibus Crime Control and Safe 

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

13 amended by inserting after section 109 the fol14 lowing: 

15 ‘‘SEC. 110. CANNABIS JUSTICE OFFICE. 

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

17 the Office of Justice Programs a Cannabis Justice Office. 

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

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

20 Assistant Attorney General for the Office of Justice Pro21 grams. The Director shall report to the Assistant Attorney 

22 General for the Office of Justice Programs. The Director 

23 shall award grants and may enter into compacts, coopera24 tive agreements, and contracts on behalf of the Cannabis 

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1 ployment other than that of serving as the Director, nor 

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

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

4 Office makes any contract or other arrangement. 

5 ‘‘(c) EMPLOYEES.— 

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

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

8 out the duties and functions of the Cannabis Justice 

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

10 exclusively assigned to the Cannabis Justice Office. 

11 ‘‘(2) INITIAL HIRES.—Not later than 180 days 

12 after the date of enactment of this section, the Di13 rector shall— 

‘‘(A) hire not less than 1 14 ⁄3 of the total 

15 number of employees of the Cannabis Justice 

16 Office; 

‘‘(B) not greater than 1 17 ⁄2 of the employees 

18 assigned to the Cannabis Justice Office by term 

19 appointment that may after 2 years be con20 verted to career appointment; and 

21 ‘‘(C) hire not fewer than 1 employee to 

22 serve as a Tribal Relations Coordinator. 

23 ‘‘(3) LEGAL COUNSEL.—At least 1 employee 

24 hired for the Cannabis Justice Office shall serve as 


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1 legal counsel to the Director and shall provide coun2 sel to the Cannabis Justice Office. 

3 ‘‘(d) DUTIES AND FUNCTIONS.—The Cannabis Jus4 tice Office is authorized to— 

5 ‘‘(1) administer the Community Reinvestment 

6 Grant Program; and 

7 ‘‘(2) perform such other functions as the Assist8 ant Attorney General for the Office of Justice Pro9 grams may delegate, that are consistent with the 

10 statutory obligations of this section.’’. 

11 (2) COMMUNITY REINVESTMENT GRANT PRO12 GRAM.—Title I of the Omnibus Crime Control and 

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

14 is amended by adding at the end the following: 

15 ‘‘PART PP—COMMUNITY REINVESTMENT GRANT 

16 PROGRAM 

17 ‘‘SEC. 3061. AUTHORIZATION. 

18 ‘‘The Director of the Cannabis Justice Office shall 

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

20 ‘Community Reinvestment Grant Program’, to provide eli21 gible entities with funds to administer services for individ22 uals adversely impacted by the War on Drugs, including— 

23 ‘‘(1) job training; 

24 ‘‘(2) reentry services; 


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1 ‘‘(3) legal aid for civil and criminal cases, in2 cluding expungement of cannabis convictions; 

3 ‘‘(4) literacy programs; 

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

5 and 

6 ‘‘(6) health education programs. 

7 ‘‘SEC. 3062. DEFINITIONS. 

8 ‘‘In this part: 

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

10 conviction, or adjudication of juvenile delinquency, 

11 for a cannabis offense, (as defined in section 3 of 

12 the Cannabis Administration and Opportunity Act). 

13 ‘‘(2) The term ‘eligible entity’ means a non14 profit organization, as described in section 501(c)(3) 

15 of the Internal Revenue Code and exempt from tax16 ation under section 501(a) of such Code, an Indian 

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

18 of the Indian Self-Determination and Education As19 sistance Act (25 U.S.C. 5304)), or a Native Hawai20 ian-serving entity that is representative of a commu21 nity or a significant segment of a community with 

22 experience in providing relevant services to individ23 uals adversely impacted by the War on Drugs in 

24 that community. 


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

2 the War on Drugs’ has the meaning given the term 

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

4 and Opportunity Act. 

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

6 means— 

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

8 defined in section 6207 of the Elementary and 

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

10 7517)); 

11 ‘‘(B) the Department of Hawaiian Home 

12 Lands; and 

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

14 (b) CANNABIS OPPORTUNITY PROGRAM; EQUITABLE

15 LICENSING GRANT PROGRAM.— 

16 (1) DEFINITIONS.—In this subsection: 

17 (A) ADMINISTRATION; ADMINISTRATOR.— 

18 The terms ‘‘Administration’’ and ‘‘Adminis19 trator’’ mean the Small Business Administra20 tion and the Administrator thereof, respectively. 

21 (B) ELIGIBLE INDIAN TRIBE.—The term 

22 ‘‘eligible Indian Tribe’’ means an Indian Tribe 

23 that has taken steps— 

24 (i) to create an automatic process, at 

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1 stroy, or seal criminal records for cannabis 

2 offenses; and 

3 (ii) to eliminate violations or other 

4 penalties for individuals under parole, pro5 bation, pre-trial, or other Tribal criminal 

6 supervision for a cannabis offense. 

7 (C) ELIGIBLE STATE OR LOCALITY.—The 

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

9 or locality that has taken steps— 

10 (i) to create an automatic process, at 

11 no cost to an individual, to expunge, de12 stroy, or seal criminal records for cannabis 

13 offenses; and 

14 (ii) to eliminate violations or other 

15 penalties for individuals under parole, pro16 bation, pre-trial, or other State or local 

17 criminal supervision for a cannabis offense. 

18 (D) FEDERAL POVERTY LEVEL.—The term 

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

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

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

22 (E) INDIVIDUAL ADVERSELY IMPACTED BY

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

24 adversely impacted by the War on Drugs’’ 

25 means an individual— 


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1 (i) who has had an income below 250 

2 percent of the Federal Poverty Level for 

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

4 of the date on which the individual seeks 

5 to participate in a program established 

6 under this section or an amendment made 

7 by this section; and 

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

9 convicted of, the sale, possession, use, 

10 manufacture, or cultivation of cannabis 

11 (except for a conviction involving distribu12 tion to a minor); or 

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

14 child of whom has been arrested for, or 

15 convicted of, an offense described in sub16 clause (I). 

17 (F) SMALL BUSINESS CONCERN OWNED

18 AND CONTROLLED BY SOCIALLY AND ECONOMI19 CALLY DISADVANTAGED INDIVIDUALS.—The 

20 term ‘‘small business concern owned and con21 trolled by socially and economically disadvan22 taged individuals’’ has the meaning given the 

23 term in section 8(d)(3)(C) of the Small Busi24 ness Act (15 U.S.C. 637(d)(3)(C)). 

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


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1 (i) each of the several States; 

2 (ii) the District of Columbia; 

3 (iii) the Commonwealth of Puerto 

4 Rico; and 

5 (iv) any territory or possession of the 

6 United States. 

7 (2) CANNABIS RESTORATIVE OPPORTUNITY

8 PROGRAM.— 

9 (A) IN GENERAL.—The Administrator 

10 shall establish and carry out a program, to be 

11 known as the ‘‘Cannabis Restorative Oppor12 tunity Program’’, to provide loans and technical 

13 assistance under section 7(m) of the Small 

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

15 small business concerns owned and controlled 

16 by socially and economically disadvantaged indi17 viduals that operate— 

18 (i) in eligible States or localities; or 

19 (ii) in the jurisdiction of eligible In20 dian Tribes. 

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

22 made available to carry out subparagraph (A), 

23 5 percent shall be used to provide loans and 

24 technical assistance under section 7(m) of the 

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1 sist small business concerns owned and con2 trolled by socially and economically disadvan3 taged individuals that operate in the jurisdic4 tion of an eligible Indian Tribe. 

5 (3) EQUITABLE LICENSING GRANT PROGRAM.— 

6 The Administrator shall establish and carry out a 

7 grant program, to be known as the ‘‘Equitable Li8 censing Grant Program’’, to provide any eligible 

9 State or locality or eligible Indian Tribe funds to de10 velop and implement equitable cannabis licensing 

11 programs that minimize barriers to cannabis licens12 ing and employment for individuals adversely im13 pacted by the War on Drugs, provided that each 

14 grantee includes in the cannabis licensing program 

15 of the grantee not less than 4 of the following ele16 ments: 

17 (A) A waiver of cannabis license applica18 tion fees for an individual who— 

19 (i) has had an income below 250 per20 cent of the Federal Poverty Level for not 

21 fewer than 5 of the 10 years preceding the 

22 date on which the individual submits an 

23 application; and 

24 (ii) is a first-time applicant. 


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1 (B) A prohibition on the denial of a can2 nabis license based on a conviction for a can3 nabis offense that took place before the eligible 

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

5 the State in which the locality is located) or eli6 gible Indian Tribe legalized the production, dis7 tribution, or possession of cannabis or the date 

8 of enactment of this Act, as applicable. 

9 (C) A prohibition on restrictions for licens10 ing relating to criminal convictions except with 

11 respect to a criminal conviction related to own12 ing and operating a business. 

13 (D) A prohibition on cannabis license hold14 ers engaging in suspicionless cannabis drug 

15 testing of their prospective or current employ16 ees, except with respect to drug testing for safe17 ty-sensitive positions under part 40 of title 49, 

18 Code of Federal Regulations, or any successor 

19 regulations. 

20 (E) The establishment of a cannabis li21 censing board that— 

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

23 economic, and gender composition of the 

24 eligible State or locality or eligible Indian 

25 Tribe; 


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1 (ii) includes at least 1 representative 

2 from an eligible Indian Tribe that has ju3 risdiction within that eligible State or lo4 cality or that has Tribal jurisdiction, as 

5 applicable; and 

6 (iii) shall serve as an oversight body 

7 of the equitable licensing program. 

8 (4) STUDY ON PROGRAMS.— 

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

10 after the date of enactment of this Act, and an11 nually thereafter, the Comptroller General of 

12 the United States, in consultation with the Ad13 ministrator, shall conduct a study on the indi14 viduals and entities receiving assistance under 

15 the Cannabis Restorative Opportunity and Eq16 uitable Licensing Programs established under 

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

18 shall include— 

19 (i) the types of assistance by State; 

20 and 

21 (ii) a description of— 

22 (I) the efforts by the Administra23 tion to increase access to capital for 

24 cannabis-related small business con25 cerns owned and controlled by socially 


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1 and economically disadvantaged indi2 viduals and small business concerns 

3 owned and controlled by individuals 

4 adversely impacted by the War on 

5 Drugs; and 

6 (II) the racial, ethnic, economic 

7 and gender composition of the eligible 

8 State or locality. 

9 (B) REPORT.—The Comptroller General of 

10 the United States shall submit a report on the 

11 results of each study conducted under subpara12 graph (A) to— 

13 (i) the Committee on Small Business 

14 and Entrepreneurship of the Senate; 

15 (ii) the Committee on Small Business 

16 of the House of Representatives; 

17 (iii) the Committee on the Judiciary 

18 of the Senate; and 

19 (iv) the Committee on the Judiciary of 

20 the House of Representatives. 

21 (c) APPROPRIATIONS.— 

22 (1) COMMUNITY REINVESTMENT GRANT PRO23 GRAM.—In addition to amounts otherwise available, 

24 there is appropriated, out of any funds in the Treas25 ury not otherwise appropriated, $1,650,000,000 for 


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1 fiscal year 2025, to remain available until September 

2 30, 2029, to carry out the program under part PP 

3 of title I of the Omnibus Crime Control and Safe 

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

5 added by subsection (a)(2). 

6 (2) CANNABIS RESTORATIVE OPPORTUNITY

7 PROGRAM.—In addition to amounts otherwise avail8 able, there is appropriated, out of any funds in the 

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

10 for fiscal year 2025, to remain available until Sep11 tember 30, 2029, to carry out the program under 

12 subsection (b)(2). 

13 (3) EQUITABLE LICENSING GRANT PROGRAM.— 

14 In addition to amounts otherwise available, there is 

15 appropriated, out of any funds in the Treasury not 

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

17 2025, to remain available until September 30, 2029, 

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

19 SEC. 302. COMPREHENSIVE OPIOID, STIMULANT, AND SUB20 STANCE USE DISORDER PROGRAM. 

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

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

23 10701 et seq.) is amended— 


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

2 ABUSE GRANT’’ and inserting ‘‘OPIOID, STIMU3 LANT, AND SUBSTANCE USE DISORDER’’; 

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

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

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

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

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

9 and 

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

11 and inserting ‘‘substance misuse and’’; and 

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

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

14 misuse and abuse’’. 

15 (b) APPROPRIATION.—In addition to amounts other16 wise available, there is appropriated, out of any funds in 

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

18 for each of fiscal years 2025 through 2029 to carry out 

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

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

21 by subsection (a) of this section. 


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1 SEC. 303. AVAILABILITY OF SMALL BUSINESS ADMINISTRA2 TION PROGRAMS AND SERVICES TO CAN3 NABIS-RELATED LEGITIMATE BUSINESSES 

4 AND SERVICE PROVIDERS. 

5 (a) DEFINITIONS RELATING TO CANNABIS-RELATED

6 LEGITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

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

8 amended by adding at the end the following: 

9 ‘‘(gg) CANNABIS-RELATED LEGITIMATE BUSINESSES

10 AND SERVICE PROVIDERS.—In this Act: 

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

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

13 meanings given those terms in section 201 of the 

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

15 321). 

16 ‘‘(2) CANNABIS-RELATED LEGITIMATE BUSI17 NESS.—The term ‘cannabis-related legitimate busi18 ness’ means a manufacturer, producer, or any per19 son or company that is a small business concern and 

20 that— 

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

22 subparagraph (B) pursuant to a law established 

23 by an Indian tribe (as defined in section 

24 8(a)(13)), a State, or a political subdivision of 

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

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


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1 ‘‘(B) participates in any business or orga2 nized activity that involves handling cannabis or 

3 cannabis products, including cultivating, pro4 ducing, manufacturing, selling, transporting, 

5 displaying, dispensing, distributing, or pur6 chasing cannabis or cannabis products. 

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

8 The term ‘cannabis-related service provider’— 

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

10 other person that— 

11 ‘‘(i) sells goods or services to a can12 nabis-related legitimate business; or 

13 ‘‘(ii) provides any business services, 

14 including the sale or lease of real or any 

15 other property, legal or other licensed serv16 ices, or any other ancillary service, relating 

17 to cannabis; and 

18 ‘‘(B) does not include a business, organiza19 tion, or other person that participates in any 

20 business or organized activity that involves han21 dling cannabis or cannabis products, including 

22 cultivating, producing, manufacturing, selling, 

23 transporting, displaying, dispensing, distrib24 uting, or purchasing cannabis or cannabis prod25 ucts.’’. 


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1 (b) SMALL BUSINESS DEVELOPMENT CENTERS.— 

2 Section 21(c) of the Small Business Act (15 U.S.C. 

3 648(c)) is amended by adding at the end the following: 

4 ‘‘(9) SERVICES FOR CANNABIS-RELATED LEGITI5 MATE BUSINESSES AND SERVICE PROVIDERS.—A small 

6 business development center may not decline to provide 

7 services to an otherwise eligible small business concern 

8 under this section solely because the concern is a cannabis9 related legitimate business or cannabis-related service pro10 vider.’’. 

11 (c) WOMEN’S BUSINESS CENTERS.—Section 29 of 

12 the Small Business Act (15 U.S.C. 656) is amended by 

13 adding at the end the following: 

14 ‘‘(p) SERVICES FOR CANNABIS-RELATED LEGITI15 MATE BUSINESSES AND SERVICE PROVIDERS.—A wom16 en’s business center may not decline to provide services 

17 to an otherwise eligible small business concern under this 

18 section solely because the concern is a cannabis-related le19 gitimate business or cannabis-related service provider.’’. 

20 (d) SCORE.—Section 8(b)(1)(B) of the Small Busi21 ness Act (15 U.S.C. 637(b)(1)(B)) is amended by adding 

22 at the end the following: ‘‘The head of the SCORE pro23 gram established under this subparagraph may not decline 

24 to provide services to an otherwise eligible small business 


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1 concern solely because the concern is a cannabis-related 

2 legitimate business or cannabis-related service provider.’’. 

3 (e) VETERAN BUSINESS OUTREACH CENTERS.—Sec4 tion 32 of the Small Business Act (15 U.S.C. 657b) is 

5 amended by adding at the end the following: 

6 ‘‘(h) SERVICES FOR CANNABIS-RELATED LEGITI7 MATE BUSINESSES AND SERVICE PROVIDERS.—A Vet8 eran Business Outreach Center may not decline to provide 

9 services to an otherwise eligible small business concern 

10 under this section solely because the concern is a cannabis11 related legitimate business or cannabis-related service pro12 vider.’’. 

13 (f) COMMUNITY NAVIGATORS PILOT PROGRAM.— 

14 Section 5004 of the American Rescue Plan Act of 2021 

15 (15 U.S.C. 9013) is amended— 

16 (1) by redesignating subsection (d) as sub17 section (e); and 

18 (2) by inserting after subsection (c) the fol19 lowing: 

20 ‘‘(d) ASSISTANCE TO CANNABIS-RELATED LEGITI21 MATE BUSINESSES AND SERVICE PROVIDERS.—The Ad22 ministrator may not decline to make a grant to or enter 

23 into a contract or cooperative agreement with an entity 

24 under this section solely because the entity is a cannabis25 related business or cannabis-related service provider (as 


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1 defined in section 3 of the Small Business Act (15 U.S.C. 

2 632)).’’. 

3 (g) 7(a) LOANS.—Section 7(a) of the Small Business 

4 Act (15 U.S.C. 636(a)) is amended by adding at the end 

5 the following: 

6 ‘‘(38) LOANS TO CANNABIS-RELATED LEGITI7 MATE BUSINESSES AND SERVICE PROVIDERS.—The 

8 Administrator may not decline to provide a guar9 antee for a loan under this subsection, and a lender 

10 may not decline to make a loan under this sub11 section, to an otherwise eligible small business con12 cern solely because the concern is a cannabis-related 

13 legitimate business or cannabis-related service pro14 vider.’’. 

15 (h) DISASTER LOANS.—Section 7(b) of the Small 

16 Business Act (15 U.S.C. 636(b)) is amended— 

17 (1) by redesignating the second paragraph (16) 

18 (relating to statute of limitations) as paragraph 

19 (17); and 

20 (2) by inserting after paragraph (17), as so re21 designated, the following: 

22 ‘‘(18) ASSISTANCE TO CANNABIS-RELATED LE23 GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

24 The Administrator may not decline to provide assist25 ance under this subsection to an otherwise eligible 


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1 small business concern solely because the concern is 

2 a cannabis-related legitimate business or cannabis3 related service provider.’’. 

4 (i) MICROLOANS.—Section 7(m) of the Small Busi5 ness Act (15 U.S.C. 636(m)) is amended by adding at the 

6 end the following: 

7 ‘‘(14) ASSISTANCE TO CANNABIS-RELATED LE8 GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

9 The Administrator may not decline to make a loan 

10 or a grant under this subsection, and an eligible 

11 intermediary may not decline to provide assistance 

12 under this subsection to an otherwise eligible bor13 rower, eligible intermediary, or eligible nonprofit en14 tity (as applicable), solely because such borrower, 

15 intermediary, or nonprofit entity is a cannabis-re16 lated legitimate business or cannabis-related service 

17 provider.’’. 

18 (j) SMALL BUSINESS INVESTMENT COMPANY DE19 BENTURES TO FINANCE CANNABIS-RELATED LEGITI20 MATE BUSINESSES AND SERVICE PROVIDERS.—Part A of 

21 title III of the Small Business Investment Act of 1958 

22 (15 U.S.C. 681 et seq.) is amended by adding at the end 

23 the following: 


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1 ‘‘SEC. 321. DEBENTURES TO FINANCE CANNABIS-RELATED 

2 LEGITIMATE BUSINESSES AND SERVICE PRO3 VIDERS. 

4 ‘‘(a) GUARANTEES.—The Administrator may not de5 cline to purchase or guarantee a debenture made under 

6 this title to an otherwise eligible small business investment 

7 company solely because such small business investment 

8 company provides financing to an entity that is a can9 nabis-related legitimate business or cannabis-related serv10 ice provider (as defined in section 3 of the Small Business 

11 Act (15 U.S.C. 632)). 

12 ‘‘(b) OTHER ASSISTANCE.—A small business invest13 ment company may not decline to provide assistance under 

14 this title to an otherwise eligible small business concern 

15 solely because the small business concern is a cannabis16 related legitimate business or cannabis-related service pro17 vider (as defined in section 3 of the Small Business Act 

18 (15 U.S.C. 632)).’’. 

19 (k) STATE OR LOCAL DEVELOPMENT COMPANY

20 LOANS.—Title V of the Small Business Investment Act 

21 of 1958 (15 U.S.C. 695 et seq.) is amended by adding 

22 at the end the following: 

23 ‘‘SEC. 511. LOANS TO FINANCE CANNABIS-RELATED LEGITI24 MATE BUSINESSES AND SERVICE PROVIDERS. 

25 ‘‘(a) LOANS AND LOAN GUARANTEES.—The Admin26 istrator may not decline to make or provide a guarantee 


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1 for a loan under this title to an otherwise eligible qualified 

2 State, Tribal, or local development company solely because 

3 such qualified State, Tribal, or local development company 

4 provides financing to an entity that is a cannabis-related 

5 legitimate business or cannabis-related service provider (as 

6 defined in section 3 of the Small Business Act (15 U.S.C. 

7 632)). 

8 ‘‘(b) OTHER ASSISTANCE.—A qualified State or local 

9 development company may not decline to provide assist10 ance under this title to an otherwise eligible small business 

11 concern solely because such small business concern is a 

12 cannabis-related legitimate business or cannabis-related 

13 service provider (as defined in section 3 of the Small Busi14 ness Act (15 U.S.C. 632)).’’. 

15 SEC. 304. DEMOGRAPHIC DATA OF CANNABIS BUSINESS 

16 OWNERS AND EMPLOYEES. 

17 (a) IN GENERAL.—The Bureau of Labor Statistics 

18 shall regularly compile, maintain, and make public data 

19 on the demographics of— 

20 (1) individuals who are business owners in the 

21 cannabis industry; and 

22 (2) individuals who are employed in the can23 nabis industry. 

24 (b) DEMOGRAPHIC DATA.—The data collected under 

25 subsection (a) shall include data regarding— 


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1 (1) age; 

2 (2) certifications and licenses; 

3 (3) disability status; 

4 (4) educational attainment; 

5 (5) family and marital status; 

6 (6) nativity; 

7 (7) race and Hispanic ethnicity; 

8 (8) school enrollment; 

9 (9) veteran status; and 

10 (10) sex. 

11 (c) CONFIDENTIALITY.—Notwithstanding any other 

12 provision in this section, the name, address, and other 

13 identifying information of an individual described in sub14 section (a) shall be kept confidential by the Bureau of 

15 Labor Statistics and not be made available to the public. 

16 (d) DEFINITIONS.—In this section: 

17 (1) CANNABIS INDUSTRY.—The term ‘‘cannabis 

18 industry’’ means the industry, in any State, jurisdic19 tion of an Indian Tribe, or locality in the United 

20 States, in which an individual or entity— 

21 (A) conducts businesses pursuant to a per22 mit issued under section 302 of the Federal Al23 cohol Administration Act, as added by section 

24 511; or 


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1 (B) is otherwise licensed or permitted 

2 under the law in such State, jurisdiction of such 

3 Indian Tribe, or law in such locality to engage 

4 in a commercial cannabis-related activity. 

5 (2) OWNER.—The term ‘‘owner’’, with respect 

6 to a business, means an individual or entity that is 

7 defined as an owner under the State, Tribal, or local 

8 law where the individual or entity is licensed or per9 mitted to operate such business. 

10 (3) STATE.—The term ‘‘State’’ means— 

11 (A) each of the several States; 

12 (B) the District of Columbia; 

13 (C) the Commonwealth of Puerto Rico; 

14 and 

15 (D) any territory or possession of the 

16 United States. 

17 SEC. 305. PILOT PROGRAM. 

18 Section 7 of the Small Business Act (15 U.S.C. 636) 

19 is amended by adding at the end the following: 

20 ‘‘(o) PILOT PROGRAM.— 

21 ‘‘(1) DEFINITIONS.—In this subsection: 

22 ‘‘(A) ELIGIBLE INTERMEDIARY.—The term 

23 ‘eligible intermediary’ means— 

24 ‘‘(i) a private, nonprofit entity, includ25 ing a private, nonprofit community develVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 opment corporation, a consortium of pri2 vate, nonprofit organizations or nonprofit 

3 community development corporations, and 

4 an agency of or nonprofit entity estab5 lished by a Native American Tribal Gov6 ernment, that— 

7 ‘‘(I) seeks or has been awarded a 

8 loan from the Administrator to make 

9 loans to small business concerns 

10 under this subsection; and 

11 ‘‘(II) has not less than 1 year of 

12 experience making loans to startup or 

13 socially and economically disadvan14 taged small business concerns; 

15 ‘‘(ii) a community development finan16 cial institution, as defined in section 103 of 

17 the Community Development Banking and 

18 Financial Institutions Act of 1994 (12 

19 U.S.C. 4702); and 

20 ‘‘(iii) a minority depository institution, 

21 as defined in section 308 of the Financial 

22 Institutions Reform, Recovery, and En23 forcement Act of 1989 (12 U.S.C. 1463 

24 note). 


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1 ‘‘(B) INDIVIDUAL ADVERSELY IMPACTED

2 BY THE WAR ON DRUGS.—The term ‘individual 

3 adversely impacted by the War on Drugs’ has 

4 the meaning given the term in section 301(b) of 

5 the Cannabis Administration and Opportunity 

6 Act. 

7 ‘‘(C) PROGRAM.—The term ‘Program’ 

8 means the small business intermediary lending 

9 pilot program established under paragraph (2). 

10 ‘‘(D) SOCIALLY AND ECONOMICALLY DIS11 ADVANTAGED SMALL BUSINESS CONCERN.—The 

12 term ‘socially and economically disadvantaged 

13 small business concern’ has the meaning given 

14 the term in section 8(a)(4)(A). 

15 ‘‘(2) ESTABLISHMENT.—There is established a 

16 10-year small business intermediary lending pilot 

17 program under which the Administrator may— 

18 ‘‘(A) make direct loans to eligible inter19 mediaries for the purpose of making loans to 

20 startup small business concerns, small business 

21 concerns owned and controlled by individuals 

22 adversely impacted by the War on Drugs, or so23 cially and economically disadvantaged small 

24 business concerns; and 


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1 ‘‘(B) in conjunction with the direct loans 

2 described in subparagraph (A), make grants to 

3 eligible intermediaries for the purpose of pro4 viding intensive marketing, management, regu5 latory compliance, and technical assistance to 

6 the small business concerns described in sub7 paragraph (A) that receive a loan under this 

8 subsection. 

9 ‘‘(3) LOANS TO ELIGIBLE INTERMEDIARIES.— 

10 ‘‘(A) APPLICATION.—Each eligible inter11 mediary desiring a loan under this subsection 

12 shall submit an application to the Adminis13 trator that describes— 

14 ‘‘(i) the type of small business con15 cerns to be assisted; 

16 ‘‘(ii) the size and range of loans to be 

17 made; 

18 ‘‘(iii) the interest rate and terms of 

19 loans to be made; 

20 ‘‘(iv) the geographic area to be served 

21 and the economic, poverty, and unemploy22 ment characteristics of the area; 

23 ‘‘(v) the status of small business con24 cerns in the area to be served and an anal25 ysis of the availability of credit; 


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1 ‘‘(vi) the marketing, management, 

2 regulatory compliance, and other technical 

3 assistance to be provided in connection 

4 with a loan made under this subsection; 

5 and 

6 ‘‘(vii) the qualifications of the appli7 cant to carry out this subsection. 

8 ‘‘(B) LOAN LIMITS.—No loan may be 

9 made to an eligible intermediary under this sub10 section if the total amount outstanding and 

11 committed to the eligible intermediary by the 

12 Administrator would, as a result of such loan, 

13 exceed $10,000,000 during the participation of 

14 the eligible intermediary in the Program. 

15 ‘‘(C) LOAN DURATION.—Loans made by 

16 the Administrator under this subsection shall be 

17 for a term of 20 years. 

18 ‘‘(D) APPLICABLE INTEREST RATE.— 

19 Loans made by the Administrator to an eligible 

20 intermediary under the Program shall bear an 

21 annual interest rate equal to the interest rate 

22 described in subsection (m)(3)(F)(ii). 

23 ‘‘(E) FEES; COLLATERAL.—The Adminis24 trator may not charge any fees or require colVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00109 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 lateral with respect to any loan made to an eli2 gible intermediary under this subsection. 

3 ‘‘(F) DELAYED PAYMENTS.—The Adminis4 trator shall not require the repayment of prin5 cipal or interest on a loan made to an eligible 

6 intermediary under the Program during the 2- 

7 year period beginning on the date of the initial 

8 disbursement of funds under that loan. 

9 ‘‘(G) MAXIMUM PARTICIPANTS AND

10 AMOUNTS.—During each fiscal year, the Ad11 ministrator may make loans under the Pro12 gram— 

13 ‘‘(i) to not more than 30 eligible inter14 mediaries; and 

15 ‘‘(ii) in a total amount of not more 

16 than $300,000,000. 

17 ‘‘(4) LOANS TO SMALL BUSINESS CONCERNS.— 

18 ‘‘(A) IN GENERAL.—The Administrator, 

19 through an eligible intermediary, shall make 

20 loans to the small business concerns described 

21 in paragraph (2) for eligible uses under sub22 section (a). 

23 ‘‘(B) MAXIMUM LOAN.—An eligible inter24 mediary may not make a loan under this subVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 section of more than $200,000 to any 1 small 

2 business concern. 

3 ‘‘(C) APPLICABLE INTEREST RATES.— 

4 ‘‘(i) IN GENERAL.—Subject to clause 

5 (ii), a loan made by an eligible inter6 mediary to a small business concern under 

7 this subsection— 

8 ‘‘(I) may have a fixed or a vari9 able interest rate; and 

10 ‘‘(II) shall bear an interest rate 

11 specified by the eligible intermediary 

12 in the application of the eligible inter13 mediary for a loan under this sub14 section. 

15 ‘‘(ii) RESTRICTIONS.—The Adminis16 trator may limit the interest rate or pro17 vide forbearance or deferment on repay18 ment of a loan made by an eligible inter19 mediary to a small business concern under 

20 this section. 

21 ‘‘(D) REVIEW RESTRICTIONS.—The Ad22 ministrator may not review individual loans 

23 made by an eligible intermediary to a small 

24 business concern before approval of the loan by 

25 the eligible intermediary. 


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1 ‘‘(5) FUNDING.—In addition to amounts other2 wise available, there is appropriated, out of any 

3 funds in the Treasury not otherwise appropriated, 

4 for fiscal year 2025, to remain available until Sep5 tember 30, 2029— 

6 ‘‘(A) $90,000,000 to carry out paragraph 

7 (2)(A); and 

8 ‘‘(B) $41,000,000 to carry out paragraph 

9 (2)(B). 

10 ‘‘(6) TERMINATION.—The authority of the Ad11 ministrator to make loans under the Program shall 

12 terminate on the date that is 10 years after the date 

13 of enactment of this subsection. 

14 ‘‘(7) SENSE OF THE SENATE.—It is the sense 

15 of the Senate that the Administrator should issue 

16 regulations to ensure that the processing and dis17 bursement of loans under this subsection prioritizes 

18 individuals adversely impacted by the War on 

19 Drugs.’’. 

20 SEC. 306. ELIMINATING DISPARITIES AMONG CANNABIS-RE21 LATED LEGITIMATE BUSINESSES AND SERV22 ICE PROVIDERS. 

23 (a) DEFINITIONS.—In this section— 

24 (1) the terms ‘‘cannabis-related legitimate busi25 ness’’ and ‘‘cannabis-related service provider’’ have 


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1 the meanings given those terms in section 3 of the 

2 Small Business Act (15 U.S.C. 632), as added by 

3 section 303; and 

4 (2) the term ‘‘individual adversely impacted by 

5 the War on Drugs’’ has the meaning given the term 

6 in section 301(b). 

7 (b) REVIEW.—The Administrator of the Small Busi8 ness Administration— 

9 (1) shall review regulations, policies, and guid10 ance of the Administration to eliminate disparities 

11 for cannabis-related legitimate businesses and can12 nabis-related service providers, including by reducing 

13 regulatory burdens and increasing loan eligibility for 

14 minority businesses and individuals adversely im15 pacted by the War on Drugs; and 

16 (2) in carrying out paragraph (1), may consider 

17 effective, State-level systems designed to eliminate 

18 disparities for cannabis-related legitimate businesses 

19 and cannabis-related service providers. 

20 Subtitle B—Restorative Justice 

21 SEC. 311. RESENTENCING AND EXPUNGEMENT. 

22 (a) EXPUNGEMENT OF FEDERAL CANNABIS OF23 FENSE CONVICTIONS FOR INDIVIDUALS NOT UNDER A

24 CRIMINAL JUSTICE SENTENCE.— 


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1 (1) IN GENERAL.—Not later than 1 year after 

2 the date of enactment of this Act, each judicial dis3 trict shall conduct a comprehensive review and issue 

4 an order expunging each conviction or adjudication 

5 of juvenile delinquency for a Federal cannabis of6 fense entered by each district court of the United 

7 States in the judicial district during the period be8 ginning on May 1, 1971, and ending on the day be9 fore the date of enactment of this Act. Each district 

10 court of the United States shall also issue an order 

11 expunging any arrests associated with each ex12 punged conviction or adjudication of juvenile delin13 quency. 

14 (2) NOTIFICATION.—To the greatest extent 

15 practicable, each district court of the United States 

16 shall notify each individual whose arrest, conviction, 

17 or adjudication of delinquency has been expunged 

18 pursuant to this subsection that their arrest, convic19 tion, or adjudication of juvenile delinquency has been 

20 expunged, and the effect of such expungement. 

21 (3) RIGHT TO PETITION COURT FOR

22 EXPUNGEMENT.—At any point after the date of en23 actment of this Act, any individual with a prior con24 viction or adjudication of juvenile delinquency for a 

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1 nal sentence, may file a motion for expungement. If 

2 the expungement of such a conviction or adjudica3 tion of juvenile delinquency is required pursuant to 

4 this Act, the court shall expunge the conviction or 

5 adjudication, and any associated arrests. If the indi6 vidual is indigent, counsel shall be appointed to rep7 resent the individual in any proceedings under this 

8 subsection. 

9 (4) SEALED RECORD.—The court shall seal all 

10 records related to a conviction or adjudication of ju11 venile delinquency that has been expunged under 

12 this subsection. Such records may only be made 

13 available by further order of the court. 

14 (5) CERTIFICATION.—The court shall provide a 

15 certificate to the individual receiving expungement 

16 for a prior Federal cannabis offense. Any records of 

17 this certification shall be sealed under paragraph 

18 (4). 

19 (b) EFFECT OF EXPUNGEMENT.—An individual who 

20 has had an arrest, a conviction, or juvenile delinquency 

21 adjudication expunged under this section— 

22 (1) may treat the arrest, conviction, or adju23 dication as if it never occurred; 

24 (2) shall be immune from any civil or criminal 

25 penalties related to perjury, false swearing, or false 


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1 statements, for a failure to disclose such arrest, con2 viction, or adjudication; and 

3 (3) shall not be subject to any loss of Federal 

4 benefits related to the expunged cannabis offense. 

5 (c) EXCEPTION.—An individual who at sentencing re6 ceived an aggravating role adjustment pursuant to section 

7 3B1.1(a) of the United States Sentencing Guidelines in 

8 relation to a Federal cannabis offense conviction shall not 

9 be eligible for expungement of that Federal cannabis of10 fense conviction under this section, unless a district court 

11 of the United States conducting the sentencing review 

12 finds mitigating factors to warrant expungement, includ13 ing the age of the individual at the time of the arrest, 

14 conviction, or adjudication, the role of the individual in 

15 the offense, or whether it was the first Federal cannabis 

16 offense committed by the individual. 

17 (d) 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 (e) REPORT.—Not later than 2 years after the date 

2 of enactment of this Act, the Comptroller General of the 

3 United States shall submit to Congress a report on the 

4 results of the study conducted under subsection (d). 

5 (f) DEFINITIONS.—In this section: 

6 (1) The term ‘‘Federal cannabis offense’’ means 

7 an offense that is no longer punishable pursuant to 

8 this Act or the amendments made under this Act. 

9 (2) The term ‘‘expunge’’ means, with respect to 

10 an arrest, a conviction, or a juvenile delinquency ad11 judication, the removal of the record of such arrest, 

12 conviction, or adjudication from each official index 

13 or public record. 

14 (3) The term ‘‘serving a criminal sentence’’ 

15 means, with respect to an individual, that the indi16 vidual is serving a term of probation, parole, super17 vised release, imprisonment, official detention, pre18 release custody, or work release, pursuant to a sen19 tence or disposition of juvenile delinquency imposed 

20 on or after May 1, 1971. 

21 SEC. 312. NO DISCRIMINATION IN THE PROVISION OF A 

22 FEDERAL PUBLIC BENEFIT ON THE BASIS OF 

23 CANNABIS. 

24 (a) IN GENERAL.—No person may be denied any 

25 Federal public benefit (as such term is defined in section 


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1 401(c) of the Personal Responsibility and Work Oppor2 tunity Reconciliation Act of 1996 (8 U.S.C. 1611(c))) on 

3 the basis of any use or possession of cannabis, or on the 

4 basis of a conviction or adjudication of juvenile delin5 quency for a cannabis offense, by that person. 

6 (b) SECURITY CLEARANCES.—A Federal agency may 

7 not grant, deny, or rescind a security clearance based sole8 ly on past or present cannabis use. 

9 SEC. 313. NO ADVERSE EFFECT FOR PURPOSES OF THE IM10 MIGRATION LAWS. 

11 (a) IN GENERAL.—For purposes of the immigration 

12 laws (as defined in section 101 of the Immigration and 

13 Nationality Act (8 U.S.C. 1101(a))), cannabis may not be 

14 considered a controlled substance, and an alien may not 

15 be denied any benefit or protection under the immigration 

16 laws based on any event, including conduct, a finding, an 

17 admission, addiction or abuse, an arrest, a juvenile adju18 dication, or a conviction, relating to cannabis, regardless 

19 of whether the event occurred before, on, or after the ef20 fective date of this Act. 

21 (b) AMENDMENTS TO THE IMMIGRATION AND NA22 TIONALITY ACT.—The Immigration and Nationality Act 

23 (8 U.S.C. 1101 et seq.) is amended— 

24 (1) in section 101(f)(3) (8 U.S.C. 1101(f)(3)), 

25 by striking ‘‘(except as such paragraph relates to a 


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1 single offense of simple possession of 30 grams or 

2 less of marihuana)’’; 

3 (2) in section 210(c)(2)(B)(ii)(III) (8 U.S.C. 

4 1160(c)(2)(B)(ii)(III)), by striking ‘‘, except for so 

5 much of such paragraph as relates to a single of6 fense of simple possession of 30 grams or less of 

7 marihuana’’; 

8 (3) in section 212(h) (8 U.S.C. 1182(h)), by 

9 striking ‘‘and subparagraph (A)(i)(II) of such sub10 section insofar as it relates to a single offense of 

11 simple possession of 30 grams or less of marijuana’’; 

12 (4) in section 237(a)(2)(B)(i) (8 U.S.C. 

13 (a)(2)(B)(i)), by striking ‘‘, other than a single of14 fense involving possession for one’s own use of 30 

15 grams or less of marijuana’’; 

16 (5) in section 240(c)(6) (8 U.S.C. 1229a(c)(6)), 

17 by amending subparagraphs (A) and (B) to read as 

18 follows: 

19 ‘‘(A) RIGHT TO FILE.— 

20 ‘‘(i) IN GENERAL.—Except as pro21 vided in clause (ii), a noncitizen may file 1 

22 motion to reconsider a decision that the 

23 alien is removable from the United States. 

24 ‘‘(ii) REMOVAL ORDERS IMPACTED BY

25 CANNABIS OFFENSES.—In addition to the 


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1 motion authorized under clause (i), a re2 moval order shall be reconsidered upon a 

3 motion filed at any time by a noncitizen 

4 demonstrating that— 

5 ‘‘(I) such order was based, in 

6 whole or in part, on an offense relat7 ing to cannabis that rendered the non8 citizen deportable or inadmissible; or 

9 ‘‘(II) an offense relating to can10 nabis— 

11 ‘‘(aa) rendered the noncit12 izen ineligible for a benefit or re13 lief under this Act; or 

14 ‘‘(bb) formed all or part of 

15 the basis for the denial of a ben16 efit or relief under this Act. 

17 ‘‘(B) DEADLINE.—A motion to reconsider 

18 under subparagraph (A)(i) shall be filed not 

19 later than 30 days after the date of entry of the 

20 relevant final administrative order of removal.’’; 

21 (6) in section 244(c)(2)(A)(iii)(II) (8 U.S.C. 

22 1254a(c)(2)(A)(iii)(II)) by striking ‘‘, except for so 

23 much of such paragraph as relates to a single of24 fense of simple possession of 30 grams or less of 

25 marijuana’’; 


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1 (7) in section 245(h)(2)(B) (8 U.S.C. 

2 1255(h)(2)(B)) by striking ‘‘(except for so much of 

3 such paragraph as related to a single offense of sim4 ple possession of 30 grams or less of marijuana)’’; 

5 and 

6 (8) in section 245A(d)(2)(B)(ii)(II) (8 U.S.C. 

7 1255a(d)(2)(B)(ii)(II)) by striking ‘‘, except for so 

8 much of such paragraph as relates to a single of9 fense of simple possession of 30 grams or less of 

10 marihuana’’. 

11 SEC. 314. PROVISION BY HEALTH CARE PROVIDERS OF THE 

12 DEPARTMENT OF VETERANS AFFAIRS OF 

13 RECOMMENDATIONS AND OPINIONS RE14 GARDING VETERAN PARTICIPATION IN CAN15 NABIS PROGRAMS. 

16 Not later than 180 days after the date of the enact17 ment of this Act, the Secretary of Veterans Affairs shall 

18 update all applicable regulations, guidance, memoranda, 

19 and policies of the Department of Veterans Affairs to au20 thorize physicians and other health care providers em21 ployed by the Department— 

22 (1) to provide recommendations and opinions to 

23 veterans regarding the participation of such veterans 

24 in cannabis programs authorized under State or 

25 Federal law; and 


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1 (2) to complete forms reflecting such rec2 ommendations and opinions. 

3 SEC. 315. PROVISION BY HEALTH CARE PROVIDERS OF IN4 DIAN HEALTH PROGRAMS OF RECOMMENDA5 TIONS AND OPINIONS REGARDING PARTICI6 PATION IN CANNABIS PROGRAMS. 

7 Not later than 180 days after the date of enactment 

8 of this Act, the Director of the Indian Health Service shall 

9 update all applicable regulations, guidance, memoranda, 

10 and policies of the Indian Health Service to authorize 

11 health care providers (as defined in section 805(a) of the 

12 Indian Health Care Improvement Act (25 U.S.C. 

13 1675(a)))— 

14 (1) to provide recommendations and opinions to 

15 patients relating to the participation of those pa16 tients in State or Tribal cannabis programs author17 ized under Federal or State law; and 

18 (2) to complete forms reflecting those rec19 ommendations and opinions. 


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1 TITLE IV—TAXATION AND ES2 TABLISHMENT OF TRUST 

3 FUND 

4 SEC. 401. CREATION OF OPPORTUNITY TRUST FUND AND 

5 IMPOSITION OF TAXES WITH RESPECT TO 

6 CANNABIS PRODUCTS. 

7 (a) CANNABIS REVENUE AND REGULATION ACT.— 

8 Subtitle E of the Internal Revenue Code of 1986 is 

9 amended by adding at the end the following new chapter: 

10 ‘‘CHAPTER 56—CANNABIS PRODUCTS 

‘‘SUBCHAPTER A. TAX ON CANNABIS PRODUCTS

‘‘SUBCHAPTER B. AUTHORIZATION AND BOND REQUIREMENTS

‘‘SUBCHAPTER C. OPERATIONS

‘‘SUBCHAPTER D. PENALTIES

11 ‘‘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. 

12 ‘‘SEC. 5901. IMPOSITION OF TAX. 

13 ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 

14 on any cannabis product produced in or imported into the 

15 United States a tax equal to— 

16 ‘‘(1) for any such product removed during the 

17 first 5 calendar years ending after the date on which 

18 this chapter becomes effective, the applicable per19 centage of such product’s removal price, and 


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1 ‘‘(2) for any product removed during any cal2 endar year after the calendar years described in 

3 paragraph (1), the applicable equivalent amount. 

4 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

5 subsection (a)(1), the applicable percentage shall be deter6 mined as follows: 

7 ‘‘(1) For any cannabis product sold during the 

8 first 2 calendar years in which this chapter becomes 

9 effective, 10 percent. 

10 ‘‘(2) For any cannabis product sold during the 

11 calendar year after the period described in para12 graph (1), 15 percent. 

13 ‘‘(3) For any cannabis product sold during the 

14 calendar year after the period described in para15 graph (2), 20 percent. 

16 ‘‘(4) For any cannabis product sold during the 

17 calendar year after the period described in para18 graph (3), 25 percent. 

19 ‘‘(c) APPLICABLE EQUIVALENT AMOUNT.— 

20 ‘‘(1) IN GENERAL.—For purposes of subsection 

21 (a)(2), the term ‘applicable equivalent amount’ 

22 means, with respect to any cannabis product re23 moved during any calendar year, an amount equal 

24 to— 


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1 ‘‘(A) in the case of any cannabis product 

2 not described in subparagraph (B), the product 

3 of the applicable rate per ounce multiplied by 

4 the number of ounces of such product (and a 

5 proportionate tax at the like rate on all frac6 tional parts of an ounce of such product), and 

7 ‘‘(B) in the case of any THC product, the 

8 product of the applicable rate per gram multi9 plied by the number of grams of 

10 tetrahydrocannabinol in such product (and a 

11 proportionate tax at the like rate on all frac12 tional parts of a gram of tetrahydrocannabinol 

13 in such product). 

14 ‘‘(2) APPLICABLE RATES.— 

15 ‘‘(A) IN GENERAL.—For purposes of para16 graph (1)(A), the term ‘applicable rate per 

17 ounce’ means, with respect to any cannabis 

18 product removed during any calendar year, 25 

19 percent of the prevailing sales price of cannabis 

20 flowers sold in the United States during the 12- 

21 month period ending one calendar quarter be22 fore such calendar year, expressed on a per 

23 ounce basis, as determined by the Secretary. 

24 ‘‘(B) THC PRODUCTS.—For purposes of 

25 paragraph (1)(B), the term ‘applicable rate per 


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1 gram’ means, with respect to any cannabis 

2 product removed during any calendar year, 25 

3 percent of the prevailing sales price of 

4 tetrahydrocannabinol sold in the United States 

5 during the 12-month period ending one cal6 endar quarter before such calendar year, ex7 pressed on a per gram basis, as determined by 

8 the Secretary. 

9 ‘‘(d) TIME OF ATTACHMENT ON CANNABIS PROD10 UCTS; LIEN FOR TAX.— 

11 ‘‘(1) TIME OF ATTACHMENT.—The tax under 

12 this section shall attach to any cannabis product as 

13 soon as such product is in existence as such, wheth14 er it be subsequently separated or transferred into 

15 any other substance, either in the process of original 

16 production or by any subsequent process. 

17 ‘‘(2) LIEN FOR TAX.— 

18 ‘‘(A) IN GENERAL.—The tax imposed by 

19 this section shall be a first lien on the cannabis 

20 product from the time the product is in exist21 ence as such until the tax is paid. 

22 ‘‘(B) EXCEPTIONS.—The lien imposed by 

23 this paragraph shall terminate in the case of 

24 products produced at a cannabis production fa25 cility when such products are— 


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1 ‘‘(i) withdrawn from bonded premises 

2 on determination of tax, 

3 ‘‘(ii) withdrawn from bonded premises 

4 free of tax under provisions of section 

5 5904(a), or 

6 ‘‘(iii) exported, deposited in a foreign7 trade zone, or deposited in a customs 

8 bonded warehouse. 

9 ‘‘(e) CREDIT FOR QUALIFIED DOMESTIC MANUFAC10 TURERS.— 

11 ‘‘(1) IN GENERAL.—In the case of a qualified 

12 domestic manufacturer of cannabis products, there 

13 shall be allowed as a credit against any tax imposed 

14 by subsection (a) for the calendar year an amount 

15 equal to 50 percent of the applicable tax amount for 

16 such calendar year. 

17 ‘‘(2) APPLICABLE TAX AMOUNT.— 

18 ‘‘(A) IN GENERAL.—For purposes of this 

19 subsection, the applicable tax amount shall be 

20 an amount equal to the lesser of— 

21 ‘‘(i) the amount of any tax imposed by 

22 subsection (a) for the calendar year, or 

23 ‘‘(ii) the phase-in amount. 


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1 ‘‘(B) PHASE-IN AMOUNT.—For purposes of 

2 subparagraph (A), the phase-in amount shall be 

3 an amount equal to— 

4 ‘‘(i) for the calendar year which in5 cludes the date on which this chapter first 

6 becomes effective, $2,000,000, 

7 ‘‘(ii) for the first calendar year subse8 quent to the calendar year described in 

9 clause (i), $2,000,000, 

10 ‘‘(iii) for the second calendar year 

11 subsequent to the calendar year described 

12 in clause (i), $3,000,000, 

13 ‘‘(iv) for the third calendar year sub14 sequent to the calendar year described in 

15 clause (i), $4,000,000, and 

16 ‘‘(v) for any calendar years subse17 quent to the calendar year described in 

18 clause (iv), $5,000,000. 

19 ‘‘(3) CREDIT NOT ALLOWED FOR CANNABIS RE20 CEIVED IN BOND, IMPORTED, SMUGGLED, OR ILLE21 GALLY PRODUCED.— 

22 ‘‘(A) IN GENERAL.—The credit under this 

23 subsection shall not apply in the case of any 

24 cannabis which is— 

25 ‘‘(i) received in bond, 


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1 ‘‘(ii) imported, 

2 ‘‘(iii) smuggled into the United 

3 States, or 

4 ‘‘(iv) produced other than as author5 ized by this chapter. 

6 ‘‘(B) SUBSTANTIAL PROCESSING EXCEP7 TION.—Subparagraph (A)(i) shall not apply 

8 with respect to any cannabis which is trans9 ferred in bond solely as unprocessed plant mat10 ter if such cannabis is processed by the tax11 payer to produce an extract which contains no 

12 plant matter. 

13 ‘‘(C) CONTRACT PACKAGING AND LABEL14 ING EXCEPTION.—In the case of cannabis 

15 transferred in bond from the person who pro16 duced such cannabis (hereinafter referred to as 

17 ‘transferor’) to another person for packaging or 

18 labeling of such cannabis, and returned to the 

19 transferor for removal, subparagraph (A)(i) 

20 shall not apply, but only if the transferor re21 tains title during the entire period between such 

22 production and removal. 

23 ‘‘(4) SINGLE TAXPAYER.—Pursuant to rules 

24 issued by the Secretary, 2 or more entities (whether 

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1 nabis product under a license, franchise, or other ar2 rangement shall be treated as a single taxpayer for 

3 purposes of the application of this subsection. 

4 ‘‘(5) TIME FOR DETERMINING AND ALLOWING

5 CREDIT.—The credit allowable by paragraph (1)— 

6 ‘‘(A) shall be determined at the same time 

7 the tax is determined under subsection (a) of 

8 this section, and 

9 ‘‘(B) shall be allowable at the time the tax 

10 described in such subsection is payable as if the 

11 credit allowable by this subsection constituted a 

12 reduction in the rate of such tax. 

13 ‘‘(6) CONTROLLED GROUPS.—Rules similar to 

14 rules of section 5051(a)(5) shall apply for purposes 

15 of this subsection. 

16 ‘‘SEC. 5902. DEFINITIONS. 

17 ‘‘(a) DEFINITIONS RELATED TO CANNABIS PROD18 UCTS.—For purposes of this subtitle— 

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

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

21 same meaning given such terms under subsection 

22 (tt) of section 201 of the Federal Food, Drug, and 

23 Cosmetic Act (21 U.S.C. 321). 

24 ‘‘(2) CANNABIS FLOWER.—The term ‘cannabis 

25 flower’ means any cannabis plant product consisting 


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1 of the flower of the plant Cannabis sativa L., or any 

2 other part of such plant with significant concentra3 tions of tetrahydrocannabinol as designated by the 

4 Secretary. 

5 ‘‘(3) CANNABIS PLANT PRODUCT.—The term 

6 ‘cannabis plant product’ means any part of the plant 

7 Cannabis sativa L. which— 

8 ‘‘(A) is a cannabis product, and 

9 ‘‘(B) does not contain any cannabis that 

10 has been processed, extracted, or concentrated 

11 (other than harvesting, drying, curing, or trim12 ming). 

13 ‘‘(4) THC PRODUCT.—The term ‘THC product’ 

14 means any cannabis product other than a cannabis 

15 plant product. 

16 ‘‘(5) TETRAHYDROCANNABINOL.—The term 

17 ‘tetrahydrocannabinol’ means total 

18 tetrahydrocannabinol equivalent (as defined in para19 graph (1)(B) of section 297A of the Agricultural 

20 Marketing Act of 1946 (7 U.S.C. 1639o)). 

21 ‘‘(b) DEFINITIONS RELATED TO CANNABIS ENTER22 PRISES.—For purposes of this chapter— 

23 ‘‘(1) CANNABIS ENTERPRISE.—The term ‘can24 nabis enterprise’ means a producer, importer, or ex25 port warehouse proprietor. 


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1 ‘‘(2) PRODUCER.— 

2 ‘‘(A) IN GENERAL.—The term ‘producer’ 

3 means any person who plants, cultivates, har4 vests, grows, manufactures, produces, com5 pounds, converts, processes, prepares, or pack6 ages any cannabis product. 

7 ‘‘(B) PERSONAL USE EXCEPTION.—Subject 

8 to such regulations as the Secretary shall pre9 scribe, the term ‘producer’ shall not include any 

10 individual otherwise described in subparagraph 

11 (A) if the only cannabis product described in 

12 such subparagraph with respect to such indi13 vidual is for personal or family use and not for 

14 sale, provided— 

15 ‘‘(i) such individual is solely involved 

16 in the planting, cultivation, and growing of 

17 such cannabis, 

18 ‘‘(ii) the planting, cultivation, and 

19 growing of such cannabis occurs only in 

20 such individual’s dwelling house, or in any 

21 shed, yard, or inclosure connected with 

22 such individual’s dwelling house, and 

23 ‘‘(iii) the quantity of cannabis prod24 ucts planted, cultivated, and grown by such 

25 individual does not exceed the personal use 


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1 production limitations determined by the 

2 Secretary as are necessary to protect the 

3 public and protect the revenue. 

4 ‘‘(3) IMPORTER.—The term ‘importer’ means 

5 any person who— 

6 ‘‘(A) is in the United States and to whom 

7 non-tax-paid cannabis products, produced in a 

8 foreign country or a possession of the United 

9 States, are shipped or consigned, 

10 ‘‘(B) removes cannabis products for sale or 

11 consumption in the United States from a cus12 toms bonded warehouse, or 

13 ‘‘(C) smuggles or otherwise unlawfully 

14 brings any cannabis product into the United 

15 States. 

16 ‘‘(4) EXPORT WAREHOUSE PROPRIETOR.— 

17 ‘‘(A) IN GENERAL.—The term ‘export 

18 warehouse proprietor’ means any person who 

19 operates an export warehouse. 

20 ‘‘(B) EXPORT WAREHOUSE.—The term 

21 ‘export warehouse’ means a bonded internal 

22 revenue warehouse for the storage of cannabis 

23 products, upon which the internal revenue tax 

24 has not been paid— 


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1 ‘‘(i) for subsequent shipment to a for2 eign country or a possession of the United 

3 States, or 

4 ‘‘(ii) for consumption beyond the ju5 risdiction of the internal revenue laws of 

6 the United States. 

7 ‘‘(5) CANNABIS PRODUCTION FACILITY.—The 

8 term ‘cannabis production facility’ means an estab9 lishment which is qualified under subchapter B to 

10 perform any operation for which such qualification is 

11 required under such subchapter. 

12 ‘‘(c) OTHER DEFINITIONS.—For purposes of this 

13 chapter— 

14 ‘‘(1) PRODUCE.—The term ‘produce’ includes 

15 any activity described in subsection (b)(2)(A). 

16 ‘‘(2) REMOVAL; REMOVE.—The terms ‘removal’ 

17 or ‘remove’ means— 

18 ‘‘(A) the transfer of cannabis products 

19 from the premises of a producer (or the trans20 fer of such products from the bonded premises 

21 of a producer to a non-bonded premises of such 

22 producer), 

23 ‘‘(B) release of such products from cus24 toms custody, or 


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1 ‘‘(C) smuggling or other unlawful importa2 tion of such products into the United States. 

3 ‘‘(3) REMOVAL PRICE.—The term ‘removal 

4 price’ means— 

5 ‘‘(A) except as otherwise provided in this 

6 paragraph, the price for which the cannabis 

7 product is sold in the sale which occurs in con8 nection with the removal of such product, 

9 ‘‘(B) in the case of any such sale which is 

10 described in section 5903(c), the price deter11 mined under such section, and 

12 ‘‘(C) if there is no sale which occurs in 

13 connection with such removal, the price which 

14 would be determined under section 5903(c) if 

15 such product were sold at a price which cannot 

16 be determined. 

17 ‘‘SEC. 5903. LIABILITY AND METHOD OF PAYMENT. 

18 ‘‘(a) LIABILITY FOR TAX.— 

19 ‘‘(1) ORIGINAL LIABILITY.—The producer or 

20 importer of any cannabis product shall be liable for 

21 the taxes imposed thereon by section 5901. 

22 ‘‘(2) TRANSFER OF LIABILITY.— 

23 ‘‘(A) IN GENERAL.—When cannabis prod24 ucts are transferred, without payment of tax, 


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1 pursuant to subsection (b) or (c) of section 

2 5904— 

3 ‘‘(i) except as provided in clause (ii), 

4 the transferee shall become liable for the 

5 tax upon receipt by the transferee of such 

6 articles, and the transferor shall thereupon 

7 be relieved of their liability for such tax, 

8 and 

9 ‘‘(ii) in the case of cannabis products 

10 which are released in bond from customs 

11 custody for transfer to the bonded prem12 ises of a producer, the transferee shall be13 come liable for the tax on such articles 

14 upon release from customs custody, and 

15 the importer shall thereupon be relieved of 

16 their liability for such tax. 

17 ‘‘(B) RETURNED TO BOND.—All provisions 

18 of this chapter applicable to cannabis products 

19 in bond shall be applicable to such articles re20 turned to bond upon withdrawal from the mar21 ket or returned to bond after previous removal 

22 for a tax-exempt purpose. 

23 ‘‘(b) METHOD OF PAYMENT OF TAX.— 

24 ‘‘(1) IN GENERAL.— 


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1 ‘‘(A) TAXES PAID ON BASIS OF RETURN.— 

2 The taxes imposed by section 5901 shall be 

3 paid on the basis of return. The Secretary shall, 

4 by regulations, prescribe the period or the event 

5 to be covered by such return and the informa6 tion to be furnished on such return. 

7 ‘‘(B) APPLICATION TO TRANSFEREES.—In 

8 the case of any transfer to which subsection 

9 (a)(2)(A) applies, the tax under section 5901 on 

10 the transferee shall (if not otherwise relieved by 

11 reason of a subsequent transfer to which such 

12 subsection applies) be imposed with respect to 

13 the removal of the cannabis product from the 

14 bonded premises of the transferee. 

15 ‘‘(C) POSTPONEMENT.—Any postponement 

16 under this subsection of the payment of taxes 

17 determined at the time of removal shall be con18 ditioned upon the filing of such additional 

19 bonds, and upon compliance with such require20 ments, as the Secretary may prescribe for the 

21 protection of the revenue. The Secretary may, 

22 by regulations, require payment of tax on the 

23 basis of a return prior to removal of the can24 nabis products where a person defaults in the 

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1 turn under this subsection or regulations pre2 scribed thereunder. 

3 ‘‘(D) ADMINISTRATION AND PENALTIES.— 

4 All administrative and penalty provisions of this 

5 title, insofar as applicable, shall apply to any 

6 tax imposed by section 5901. 

7 ‘‘(2) TIME FOR PAYMENT OF TAXES.— 

8 ‘‘(A) IN GENERAL.—Except as otherwise 

9 provided in this paragraph, in the case of taxes 

10 on cannabis products removed during any semi11 monthly period under bond for deferred pay12 ment of tax, the last day for payment of such 

13 taxes shall be the 14th day after the last day 

14 of such semimonthly period. 

15 ‘‘(B) IMPORTED ARTICLES.—In the case of 

16 cannabis products which are imported into the 

17 United States, the following provisions shall 

18 apply: 

19 ‘‘(i) IN GENERAL.—The last day for 

20 payment of tax shall be the 14th day after 

21 the last day of the semimonthly period 

22 during which the article is entered into the 

23 customs territory of the United States. 

24 ‘‘(ii) SPECIAL RULE FOR ENTRY OF

25 WAREHOUSING.—Except as provided in 


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1 clause (iv), in the case of an entry for 

2 warehousing, the last day for payment of 

3 tax shall not be later than the 14th day 

4 after the last day of the semimonthly pe5 riod during which the article is removed 

6 from the first such warehouse. 

7 ‘‘(iii) FOREIGN TRADE ZONES.—Ex8 cept as provided in clause (iv) and in regu9 lations prescribed by the Secretary, articles 

10 brought into a foreign trade zone shall, 

11 notwithstanding any other provision of law, 

12 be treated for purposes of this subsection 

13 as if such zone were a single customs 

14 warehouse. 

15 ‘‘(iv) EXCEPTION FOR ARTICLES DES16 TINED FOR EXPORT.—Clauses (ii) and (iii) 

17 shall not apply to any article which is 

18 shown to the satisfaction of the Secretary 

19 to be destined for export. 

20 ‘‘(C) CANNABIS PRODUCTS BROUGHT INTO

21 THE UNITED STATES FROM PUERTO RICO.—In 

22 the case of cannabis products which are 

23 brought into the United States from Puerto 

24 Rico and subject to tax under section 7652, the 

25 last day for payment of tax shall be the 14th 


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1 day after the last day of the semimonthly pe2 riod during which the article is brought into the 

3 United States. 

4 ‘‘(D) SPECIAL RULE WHERE DUE DATE

5 FALLS ON SATURDAY, SUNDAY, OR HOLIDAY.— 

6 Notwithstanding section 7503, if, but for this 

7 subparagraph, the due date under this para8 graph would fall on a Saturday, Sunday, or a 

9 legal holiday (as defined in section 7503), such 

10 due date shall be the immediately preceding day 

11 which is not a Saturday, Sunday, or such a hol12 iday. 

13 ‘‘(E) SPECIAL RULE FOR UNLAWFULLY

14 PRODUCED CANNABIS PRODUCTS.—In the case 

15 of any cannabis products produced in the 

16 United States at any place other than the 

17 premises of a producer that has filed the bond 

18 and obtained the authorization required under 

19 this chapter, tax shall be due and payable im20 mediately upon production. 

21 ‘‘(3) TAXPAYERS LIABLE FOR TAXES OF NOT

22 MORE THAN $100,000.— 

23 ‘‘(A) IN GENERAL.— 

24 ‘‘(i) MORE THAN $10,000 AND NOT

25 MORE THAN $100,000 IN TAXES.—Except as 


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1 provided in clause (ii), in the case of any 

2 taxpayer who reasonably expects to be lia3 ble for not more than $100,000 in taxes 

4 imposed with respect to cannabis products 

5 under sections 5901 and 7652 for the cal6 endar year and who was liable for not 

7 more than $100,000 in such taxes in the 

8 preceding calendar year, the last day for 

9 the payment of tax on withdrawals, remov10 als, and entries (and articles brought into 

11 the United States from Puerto Rico) shall 

12 be the 14th day after the last day of the 

13 calendar quarter during which the action 

14 giving rise to the imposition of such tax oc15 curs. 

16 ‘‘(ii) NOT MORE THAN $10,000 IN

17 TAXES.—In the case of any taxpayer who 

18 reasonably expects to be liable for not 

19 more than $10,000 in taxes imposed with 

20 respect to cannabis products under sec21 tions 5901 and 7652 for the calendar year 

22 and who was liable for not more than 

23 $10,000 in such taxes in the preceding cal24 endar year, the last day for the payment of 

25 tax on withdrawals, removals, and entries 


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1 (and articles brought into the United 

2 States from Puerto Rico) shall be the 14th 

3 day after the last day of the calendar year. 

4 ‘‘(B) NO APPLICATION AFTER LIMIT EX5 CEEDED.— 

6 ‘‘(i) EXCEEDS $100,000 LIMIT.—Sub7 paragraph (A)(i) shall not apply to any 

8 taxpayer for any portion of the calendar 

9 year following the first date on which the 

10 aggregate amount of tax due under sec11 tions 5901 and 7652 from such taxpayer 

12 during such calendar year exceeds 

13 $100,000, and any tax under such sections 

14 which has not been paid on such date shall 

15 be due on the 14th day after the last day 

16 of the semimonthly period in which such 

17 date occurs. 

18 ‘‘(ii) EXCEEDS $10,000 LIMIT.—Sub19 paragraph (A)(ii) shall not apply to any 

20 taxpayer for any portion of the calendar 

21 year following the first date on which the 

22 aggregate amount of tax due under sec23 tions 5901 and 7652 from such taxpayer 

24 during such calendar year exceeds 

25 $10,000, and any tax under such sections 


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1 which has not been paid on such date shall 

2 be due on the 14th day after the last day 

3 of the calendar quarter in which such date 

4 occurs. 

5 ‘‘(C) CALENDAR QUARTER.—For purposes 

6 of this paragraph, the term ‘calendar quarter’ 

7 has the same meaning given such term under 

8 section 5061(d)(4)(C). 

9 ‘‘(4) PAYMENT BY ELECTRONIC FUND TRANS10 FER.—Any person who in any 12-month period, end11 ing December 31, was liable for a gross amount 

12 equal to or exceeding $5,000,000 in taxes imposed 

13 on cannabis products by section 5901 (or section 

14 7652) shall pay such taxes during the succeeding 

15 calendar year by electronic fund transfer (as defined 

16 in section 5061(e)(2)) to a Federal Reserve Bank. 

17 Rules similar to the rules of section 5061(e)(3) shall 

18 apply to the $5,000,000 amount specified in the pre19 ceding sentence. 

20 ‘‘(c) DETERMINATION OF PRICE.— 

21 ‘‘(1) CONSTRUCTIVE SALE PRICE.— 

22 ‘‘(A) IN GENERAL.—If an article is sold di23 rectly to consumers, sold on consignment, or 

24 sold (otherwise than through an arm’s length 

25 transaction) at less than the fair market price, 


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1 or if the price for which the article sold cannot 

2 be determined, the tax under section 5901(a) 

3 shall be— 

4 ‘‘(i) computed on the price for which 

5 such articles are sold, in the ordinary 

6 course of trade, by producers thereof, as 

7 determined by the Secretary, and 

8 ‘‘(ii) imposed on either person in9 volved in such sale, as determined by the 

10 Secretary. 

11 ‘‘(B) ARM’S LENGTH.— 

12 ‘‘(i) IN GENERAL.—For purposes of 

13 this section, a sale is considered to be 

14 made under circumstances otherwise than 

15 at arm’s length if— 

16 ‘‘(I) the parties are members of 

17 the same controlled group, whether or 

18 not such control is actually exercised 

19 to influence the sale price, 

20 ‘‘(II) the parties are members of 

21 a family, as defined in section 

22 267(c)(4), or 

23 ‘‘(III) the sale is made pursuant 

24 to special arrangements between a 

25 producer and a purchaser. 


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1 ‘‘(ii) CONTROLLED GROUPS.— 

2 ‘‘(I) IN GENERAL.—The term 

3 ‘controlled group’ has the meaning 

4 given to such term by subsection (a) 

5 of section 1563, except that ‘more 

6 than 50 percent’ shall be substituted 

7 for ‘at least 80 percent’ each place it 

8 appears in such subsection. 

9 ‘‘(II) CONTROLLED GROUPS

10 WHICH INCLUDE NONINCORPORATED

11 PERSONS.—Under regulations pre12 scribed by the Secretary, principles 

13 similar to the principles of subclause 

14 (I) shall apply to a group of persons 

15 under common control where one or 

16 more of such persons is not a corpora17 tion. 

18 ‘‘(2) CONTAINERS, PACKING, AND TRANSPOR19 TATION CHARGES.—In determining, for the purposes 

20 of this chapter, the price for which an article is sold, 

21 there shall be included any charge for coverings and 

22 containers of whatever nature, and any charge inci23 dent to placing the article in condition packed ready 

24 for shipment, but there shall be excluded the amount 

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1 ed as a separate charge. A transportation, delivery, 

2 insurance, installation, or other charge (not required 

3 by the preceding sentence to be included) shall be 

4 excluded from the price only if the amount thereof 

5 is established to the satisfaction of the Secretary in 

6 accordance with regulations. 

7 ‘‘(3) DETERMINATION OF APPLICABLE EQUIVA8 LENT AMOUNTS.—Paragraphs (1) and (2) shall 

9 apply for purposes of section 5901(c) only to the ex10 tent that the Secretary determines appropriate. 

11 ‘‘(d) PARTIAL PAYMENTS AND INSTALLMENT AC12 COUNTS.— 

13 ‘‘(1) PARTIAL PAYMENTS.—In the case of— 

14 ‘‘(A) a contract for the sale of an article 

15 wherein it is provided that the price shall be 

16 paid by installments and title to the article sold 

17 does not pass until a future date notwith18 standing partial payment by installments, 

19 ‘‘(B) a conditional sale, or 

20 ‘‘(C) a chattel mortgage arrangement 

21 wherein it is provided that the sales price shall 

22 be paid in installments, 

23 there shall be paid upon each payment with respect 

24 to the article a percentage of such payment equal to 


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1 the rate of tax in effect on the date such payment 

2 is due. 

3 ‘‘(2) SALES OF INSTALLMENT ACCOUNTS.—If 

4 installment accounts, with respect to payments on 

5 which tax is being computed as provided in para6 graph (1), are sold or otherwise disposed of, then 

7 paragraph (1) shall not apply with respect to any 

8 subsequent payments on such accounts (other than 

9 subsequent payments on returned accounts with re10 spect to which credit or refund is allowable by rea11 son of section 6416(b)(5)), but instead— 

12 ‘‘(A) there shall be paid an amount equal 

13 to the difference between— 

14 ‘‘(i) the tax previously paid on the 

15 payments on such installment accounts, 

16 and 

17 ‘‘(ii) the total tax which would be pay18 able if such installment accounts had not 

19 been sold or otherwise disposed of (com20 puted as provided in paragraph (1)), ex21 cept that 

22 ‘‘(B) if any such sale is pursuant to the 

23 order of, or subject to the approval of, a court 

24 of competent jurisdiction in a bankruptcy or in25 solvency proceeding, the amount computed 


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1 under subparagraph (A) shall not exceed the 

2 sum of the amounts computed by multiplying— 

3 ‘‘(i) the proportionate share of the 

4 amount for which such accounts are sold 

5 which is allocable to each unpaid install6 ment payment, by 

7 ‘‘(ii) the rate of tax under this chap8 ter in effect on the date such unpaid in9 stallment payment is or was due. 

10 The sum of the amounts payable under this 

11 subsection in respect of the sale of any article 

12 shall not exceed the total tax. 

13 ‘‘SEC. 5904. EXEMPTION FROM TAX; TRANSFERS IN BOND. 

14 ‘‘(a) EXEMPTION FROM TAX.—Cannabis products on 

15 which the internal revenue tax has not been paid or deter16 mined may, subject to such regulations as the Secretary 

17 shall prescribe, be withdrawn from the bonded premises 

18 of any producer in approved containers free of tax and 

19 not for resale for use— 

20 ‘‘(1) exclusively in scientific research by a lab21 oratory, 

22 ‘‘(2) by a proprietor of a cannabis production 

23 facility in research, development, or testing (other 

24 than consumer testing or other market analysis) of 

25 processes, systems, materials, or equipment, relating 


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1 to cannabis or cannabis operations, under such limi2 tations and conditions as to quantities, use, and ac3 countability as the Secretary may by regulations re4 quire for the protection of the revenue, 

5 ‘‘(3) in any drug containing cannabis which is 

6 in compliance with Federal and State law, or 

7 ‘‘(4) by the United States or any governmental 

8 agency thereof, any State, any political subdivision 

9 of a State, or the District of Columbia, for non10 consumption purposes. 

11 ‘‘(b) CANNABIS PRODUCTS TRANSFERRED OR RE12 MOVED IN BOND FROM DOMESTIC FACTORIES AND EX13 PORT WAREHOUSES.— 

14 ‘‘(1) IN GENERAL.—Subject to such regulations 

15 and under such bonds as the Secretary shall pre16 scribe, a producer or export warehouse proprietor 

17 may transfer cannabis products, without payment of 

18 tax, to the bonded premises of another producer or 

19 export warehouse proprietor, or remove such articles, 

20 without payment of tax, for shipment to a foreign 

21 country or a possession of the United States, or for 

22 consumption beyond the jurisdiction of the internal 

23 revenue laws of the United States. 

24 ‘‘(2) LABELING.—Cannabis products may not 

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1 less such products bear such marks, labels, or no2 tices as the Secretary shall by regulations prescribe. 

3 ‘‘(c) CANNABIS PRODUCTS RELEASED IN BOND

4 FROM CUSTOMS CUSTODY.—Cannabis products imported 

5 or brought into the United States may be released from 

6 customs custody, without payment of tax, for delivery to 

7 a producer or export warehouse proprietor if such articles 

8 are not put up in packages, in accordance with such regu9 lations and under such bond as the Secretary shall pre10 scribe. 

11 ‘‘(d) CANNABIS PRODUCTS EXPORTED AND RE12 TURNED.—Cannabis products classifiable under item 

13 9801.00.10 of the Harmonized Tariff Schedule of the 

14 United States (relating to duty on certain articles pre15 viously exported and returned), as in effect on the date 

16 of the enactment of the Cannabis Administration and Op17 portunity Act, may be released from customs custody, 

18 without payment of that part of the duty attributable to 

19 the internal revenue tax for delivery to the original pro20 ducer of such cannabis products or to the export ware21 house proprietor authorized by such producer to receive 

22 such products, in accordance with such regulations and 

23 under such bond as the Secretary shall prescribe. Upon 

24 such release such products shall be subject to this chapter 


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1 as if they had not been exported or otherwise removed 

2 from internal revenue bond. 

3 ‘‘SEC. 5905. CREDIT, REFUND, OR DRAWBACK OF TAX. 

4 ‘‘(a) CREDIT OR REFUND.— 

5 ‘‘(1) IN GENERAL.—Credit or refund of any tax 

6 imposed by this chapter or section 7652 shall be al7 lowed or made (without interest) to the cannabis en8 terprise on proof satisfactory to the Secretary that 

9 the claimant cannabis enterprise has paid the tax 

10 on— 

11 ‘‘(A) cannabis products withdrawn from 

12 the market by the claimant, or 

13 ‘‘(B) such products lost (otherwise than by 

14 theft) or destroyed, by fire, casualty, or act of 

15 God, while in the possession or ownership of the 

16 claimant. 

17 ‘‘(2) CANNABIS PRODUCTS LOST OR DE18 STROYED IN BOND.— 

19 ‘‘(A) EXTENT OF LOSS ALLOWANCE.—No 

20 tax shall be collected in respect of cannabis 

21 products lost or destroyed while in bond, except 

22 that such tax shall be collected— 

23 ‘‘(i) in the case of loss by theft, unless 

24 the Secretary finds that the theft occurred 

25 without connivance, collusion, fraud, or 


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1 negligence on the part of the proprietor of 

2 the cannabis production facility, owner, 

3 consignor, consignee, bailee, or carrier, or 

4 their employees or agents, 

5 ‘‘(ii) in the case of voluntary destruc6 tion, unless such destruction is carried out 

7 as provided in paragraph (3), and 

8 ‘‘(iii) in the case of an unexplained 

9 shortage of cannabis products. 

10 ‘‘(B) PROOF OF LOSS.—In any case in 

11 which cannabis products are lost or destroyed, 

12 whether by theft or otherwise, the Secretary 

13 may require the proprietor of a cannabis pro14 duction facility or other person liable for the 

15 tax to file a claim for relief from the tax and 

16 submit proof as to the cause of such loss. In 

17 every case where it appears that the loss was by 

18 theft, the burden shall be upon the proprietor 

19 of the cannabis production facility or other per20 son responsible for the tax under section 5901 

21 to establish to the satisfaction of the Secretary 

22 that such loss did not occur as the result of 

23 connivance, collusion, fraud, or negligence on 

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1 duction facility, owner, consignor, consignee, 

2 bailee, or carrier, or their employees or agents. 

3 ‘‘(C) REFUND OF TAX.—In any case where 

4 the tax would not be collectible by virtue of sub5 paragraph (A), but such tax has been paid, the 

6 Secretary shall refund such tax. 

7 ‘‘(D) LIMITATIONS.—Except as provided in 

8 subparagraph (E), no tax shall be abated, re9 mitted, credited, or refunded under this para10 graph where the loss occurred after the tax was 

11 determined. The abatement, remission, credit, 

12 or refund of taxes provided for by subpara13 graphs (A) and (C) in the case of loss of can14 nabis products by theft shall only be allowed to 

15 the extent that the claimant is not indemnified 

16 against or recompensed in respect of the tax for 

17 such loss. 

18 ‘‘(E) APPLICABILITY.—The provisions of 

19 this paragraph shall extend to and apply in re20 spect of cannabis products lost after the tax 

21 was determined and before completion of the 

22 physical removal of the cannabis products from 

23 the bonded premises. 

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1 sons liable for the tax imposed by this chapter or by 

2 section 7652 with respect to any cannabis product in 

3 bond may voluntarily destroy such products, but 

4 only if such destruction is under such supervision 

5 and under such regulations as the Secretary may 

6 prescribe. 

7 ‘‘(4) LIMITATION.—Any claim for credit or re8 fund of tax under this subsection shall be filed with9 in 6 months after the date of the withdrawal from 

10 the market, loss, or destruction of the products to 

11 which the claim relates, and shall be in such form 

12 and contain such information as the Secretary shall 

13 by regulations prescribe. 

14 ‘‘(b) DRAWBACK OF TAX.—There shall be an allow15 ance of drawback of tax paid on cannabis products, when 

16 shipped from the United States, in accordance with such 

17 regulations and upon the filing of such bond as the Sec18 retary shall prescribe. 

19 ‘‘SEC. 5906. DRAWBACK ON TAX FOR CERTAIN USES. 

20 ‘‘(a) ELIGIBILITY.—Any person using cannabis on 

21 which the tax under this subchapter has been determined, 

22 in the manufacture or production of— 

23 ‘‘(1) a drug containing cannabis which is in 

24 compliance with Federal and State law, or 


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1 ‘‘(2) extracts with a tetrahydrocannabinol con2 centration of not more than the allowable 

3 tetrahydrocannabinol equivalent amount as described 

4 in paragraph (1)(C) of section 297A of the Agricul5 tural Marketing Act of 1946 (7 U.S.C. 1639o), 

6 shall be eligible for drawback at the time when such can7 nabis is used in the manufacture of such products as pro8 vided for in this section. 

9 ‘‘(b) REGISTRATION AND REGULATION.—Every per10 son claiming drawback under this section shall— 

11 ‘‘(1) register annually with the Secretary, 

12 ‘‘(2) keep such books and records as may be 

13 necessary to establish the fact that cannabis received 

14 by such person and on which the tax has been deter15 mined were used in a manner described in sub16 section (a), and 

17 ‘‘(3) be subject to such rules and regulations in 

18 relation thereto as the Secretary shall prescribe to 

19 secure the Treasury against frauds. 

20 ‘‘(c) INVESTIGATION OF CLAIMS.—For the purpose 

21 of ascertaining the correctness of any claim filed under 

22 this section, the Secretary is authorized to— 

23 ‘‘(1) examine any books, papers, records, or 

24 memoranda bearing upon the matters required to be 

25 alleged in the claim, 


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1 ‘‘(2) require the attendance of the person filing 

2 the claim or of any officer or employee of such per3 son or the attendance of any other person having 

4 knowledge in the premises, and 

5 ‘‘(3) take testimony with reference to any mat6 ter covered by the claim and to administer oaths to 

7 any person giving such testimony. 

8 ‘‘(d) DRAWBACK.— 

9 ‘‘(1) RATE OF DRAWBACK.—In the case of can10 nabis on which the tax under this subchapter has 

11 been paid or determined, and which has been used 

12 as provided in this section, a drawback shall be al13 lowed at a rate equal to 90 percent of the amount 

14 of such tax which has been paid or determined. 

15 ‘‘(2) CLAIMS.— 

16 ‘‘(A) IN GENERAL.—Subject to subpara17 graph (B), such drawback shall be due and pay18 able quarterly upon filing of a proper claim 

19 with the Secretary. 

20 ‘‘(B) EXCEPTION.— 

21 ‘‘(i) MONTHLY BASIS.—In the case of 

22 any person entitled to such drawback who 

23 elects in writing to file monthly claims 

24 therefor, such drawback shall be due and 


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1 payable monthly upon filing of a proper 

2 claim with the Secretary. 

3 ‘‘(ii) BOND REQUIREMENT.—The Sec4 retary may require persons electing to file 

5 monthly drawback claims under this sub6 paragraph to file with the Secretary a bond 

7 or other security in such amount and with 

8 such conditions as the Secretary shall by 

9 regulations prescribe. 

10 ‘‘(iii) REVOCATION.—Any election 

11 under clause (i) may be revoked on filing 

12 of notice thereof with the Secretary. 

13 ‘‘(C) ADDITIONAL REQUIREMENT.—No 

14 claim under this section shall be allowed unless 

15 filed with the Secretary within the 6 months 

16 next succeeding the quarter in which the can17 nabis covered by the claim was used as provided 

18 in this section. 

19 ‘‘(3) ALLOWANCE OF DRAWBACK EVEN WHERE

20 CERTAIN REQUIREMENTS NOT MET.— 

21 ‘‘(A) IN GENERAL.—No claim for draw22 back under this subsection shall be denied in 

23 the case of a failure to comply with any require24 ment imposed under this section or any rule or 

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1 ant’s establishing to the satisfaction of the Sec2 retary that cannabis on which the tax has been 

3 paid or determined was in fact used in a man4 ner described in subsection (a). 

5 ‘‘(B) PENALTY.— 

6 ‘‘(i) IN GENERAL.—In the case of a 

7 failure to comply with any requirement im8 posed under this section or any rule or reg9 ulation issued thereunder, the claimant 

10 shall be liable for a penalty of $1,000 for 

11 each failure to comply unless it is shown 

12 that the failure to comply was due to rea13 sonable cause. 

14 ‘‘(ii) PENALTY MAY NOT EXCEED

15 AMOUNT OF CLAIM.—The aggregate 

16 amount of the penalties imposed under 

17 clause (i) for failures described in subpara18 graph (A) in respect of any claim shall not 

19 exceed the amount of such claim (deter20 mined without regard to clause (i)). 

21 ‘‘(C) PENALTY TREATED AS TAX.—The 

22 penalty imposed by subparagraph (B) shall be 

23 assessed, collected, and paid in the same man24 ner as taxes, as provided in section 6665(a). 


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1 ‘‘Subchapter B—Authorization and Bond 

2 Requirements 

‘‘Sec. 5911. Establishment and bond. 

‘‘Sec. 5912. Application. 

‘‘Sec. 5913. Cannabis production facility. 

3 ‘‘SEC. 5911. ESTABLISHMENT AND BOND. 

4 ‘‘(a) PROHIBITION ON PRODUCTION OUTSIDE OF

5 BONDED CANNABIS PRODUCTION FACILITY.— 

6 ‘‘(1) IN GENERAL.—Except as authorized by 

7 the Secretary or on the bonded premises of a can8 nabis production facility duly authorized to produce 

9 cannabis products according to law, no cannabis 

10 product may be planted, cultivated, harvested, 

11 grown, manufactured, produced, compounded, con12 verted, processed, prepared, or packaged in any 

13 building or on any premises. 

14 ‘‘(2) AUTHORIZED PRODUCERS ONLY.—Any 

15 person establishing a cannabis production facility 

16 shall, prior to commencing operations— 

17 ‘‘(A) make application to the Secretary 

18 pursuant to section 5912, 

19 ‘‘(B) file the bond required under sub20 section (b), and 

21 ‘‘(C) receive authorization from the Sec22 retary to operate. 

23 ‘‘(3) PERSONAL USE EXCEPTION.—This sub24 section shall not apply with respect the activities of 


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1 an individual who is not treated as a producer by 

2 reason of section 5902(b)(2)(B). 

3 ‘‘(b) BOND.— 

4 ‘‘(1) WHEN REQUIRED.—Every person, before 

5 commencing business as a producer or an export 

6 warehouse proprietor, shall file such bond, condi7 tioned upon compliance with this chapter and regu8 lations issued thereunder, in such form, amount, and 

9 manner as the Secretary shall by regulation pre10 scribe. A new or additional bond may be required 

11 whenever the Secretary considers such action nec12 essary for the protection of the revenue. 

13 ‘‘(2) APPROVAL OR DISAPPROVAL.—No person 

14 shall engage in such business until he receives notice 

15 of approval of such bond. A bond may be dis16 approved, upon notice to the principal on the bond, 

17 if the Secretary determines that the bond is not ade18 quate to protect the revenue. 

19 ‘‘(3) CANCELLATION.—Any bond filed here20 under may be canceled, upon notice to the principal 

21 on the bond, whenever the Secretary determines that 

22 the bond no longer adequately protects the revenue. 

23 ‘‘(4) REMOVAL OF BOND REQUIREMENTS.— 

24 ‘‘(A) IN GENERAL.—During any period to 

25 which subparagraph (A) of section 5903(b)(3) 


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1 applies to a taxpayer (determined after applica2 tion of subparagraph (B) thereof), such tax3 payer shall not be required to furnish any bond 

4 with respect to engaging in any business as a 

5 producer or an export warehouse proprietor. 

6 ‘‘(B) SATISFACTION OF BOND REQUIRE7 MENTS.—Any taxpayer for any period described 

8 in subparagraph (A) shall be treated as if suffi9 cient bond has been furnished for purposes of 

10 engaging in such business for purposes of any 

11 requirements relating to bonds under this chap12 ter. 

13 ‘‘SEC. 5912. APPLICATION. 

14 ‘‘The application required pursuant to this section 

15 shall disclose, as regulations issued by the Secretary shall 

16 provide, such information as may be necessary to enable 

17 the Secretary to determine the location and extent of the 

18 premises, the type of operations to be conducted on such 

19 premises, and whether the operations will be in conformity 

20 with law and regulations, consistent with the requirements 

21 under section 302 of the Federal Alcohol Administration 

22 Act. 

23 ‘‘SEC. 5913. CANNABIS PRODUCTION FACILITY. 

24 ‘‘A cannabis production facility, including noncontig25 uous portions thereof, shall be so located, constructed, and 


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1 equipped, as to afford adequate protection to the revenue, 

2 as regulations prescribed by the Secretary may provide. 

3 ‘‘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. 

4 ‘‘SEC. 5921. INVENTORIES, REPORTS, AND RECORDS. 

5 ‘‘Every cannabis enterprise shall— 

6 ‘‘(1) make a true and accurate inventory at the 

7 time of commencing business, at the time of con8 cluding business, and at such other times, in such 

9 manner and form, and to include such items, as the 

10 Secretary shall by regulation prescribe, with such in11 ventories to be subject to verification by any internal 

12 revenue officer, 

13 ‘‘(2) make reports containing such information, 

14 in such form, at such times, and for such periods as 

15 the Secretary shall by regulation prescribe, and 

16 ‘‘(3) keep such records in such manner as the 

17 Secretary shall by regulation prescribe, with such 

18 records to be available for inspection by any internal 

19 revenue officer during business hours. 


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1 ‘‘SEC. 5922. PACKAGING AND LABELING. 

2 ‘‘(a) PACKAGES.—All cannabis products shall, before 

3 removal, be put up in such packages as the Secretary shall 

4 by regulation prescribe. 

5 ‘‘(b) MARKS, LABELS, AND NOTICES.—Every pack6 age of cannabis products shall, before removal, bear the 

7 marks, labels, and notices if any, that the Secretary by 

8 regulation prescribes. 

9 ‘‘(c) LOTTERY FEATURES.—No certificate, coupon, 

10 or other device purporting to be or to represent a ticket, 

11 chance, share, or an interest in, or dependent on, the event 

12 of a lottery shall be contained in, attached to, or stamped, 

13 marked, written, or printed on any package of cannabis 

14 products. 

15 ‘‘(d) INDECENT OR IMMORAL MATERIAL PROHIB16 ITED.—No indecent or immoral picture, print, or rep17 resentation shall be contained in, attached to, or stamped, 

18 marked, written, or printed on any package of cannabis 

19 products. 

20 ‘‘(e) EXCEPTIONS.—Subject to regulations prescribed 

21 by the Secretary, cannabis products may be exempted 

22 from subsections (a) and (b) if such products are— 

23 ‘‘(1) for experimental purposes, or 

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1 leased in bond from customs custody for delivery to 

2 a producer. 

3 ‘‘SEC. 5923. PURCHASE, RECEIPT, POSSESSION, OR SALE OF 

4 CANNABIS PRODUCTS AFTER REMOVAL. 

5 ‘‘(a) RESTRICTION.—No person shall— 

6 ‘‘(1) with intent to defraud the United States, 

7 purchase, receive, possess, offer for sale, or sell or 

8 otherwise dispose of, after removal, any cannabis 

9 products— 

10 ‘‘(A) upon which the tax has not been paid 

11 or determined in the manner and at the time 

12 prescribed by this chapter or regulations there13 under, or 

14 ‘‘(B) which, after removal without payment 

15 of tax pursuant to section 5904(a), have been 

16 diverted from the applicable purpose or use 

17 specified in that section, 

18 ‘‘(2) with intent to defraud the United States, 

19 purchase, receive, possess, offer for sale, or sell or 

20 otherwise dispose of, after removal, any cannabis 

21 products which are not put up in packages as re22 quired under section 5922 or which are put up in 

23 packages not bearing the marks, labels, and notices, 

24 as required under such section, or 


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1 ‘‘(3) otherwise than with intent to defraud the 

2 United States, purchase, receive, possess, offer for 

3 sale, or sell or otherwise dispose of, after removal, 

4 any cannabis products which are not put up in pack5 ages as required under section 5922 or which are 

6 put up in packages not bearing the marks, labels, 

7 and notices, as required under such section. 

8 ‘‘(b) EXCEPTION.—Paragraph (3) of subsection (a) 

9 shall not prevent the sale or delivery of cannabis products 

10 directly to consumers from proper packages, nor apply to 

11 such articles when so sold or delivered. 

12 ‘‘(c) LIABILITY TO TAX.—Any person who possesses 

13 cannabis products in violation of paragraph (1) or (2) of 

14 subsection (a) shall be liable for a tax equal to the tax 

15 on such articles. 

16 ‘‘SEC. 5924. RESTRICTIONS RELATING TO MARKS, LABELS, 

17 NOTICES, AND PACKAGES. 

18 ‘‘No person shall, with intent to defraud the United 

19 States, destroy, obliterate, or detach any mark, label, or 

20 notice prescribed or authorized, by this chapter or regula21 tions thereunder, to appear on, or be affixed to, any pack22 age of cannabis products before such package is emptied. 

23 ‘‘SEC. 5925. RESTRICTION ON IMPORTATION OF PRE24 VIOUSLY EXPORTED CANNABIS PRODUCTS. 

25 ‘‘(a) EXPORT LABELED CANNABIS PRODUCTS.— 


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1 ‘‘(1) IN GENERAL.—Cannabis products pro2 duced in the United States and labeled for expor3 tation under this chapter— 

4 ‘‘(A) may be transferred to or removed 

5 from the premises of a producer or an export 

6 warehouse proprietor only if such articles are 

7 being transferred or removed without tax in ac8 cordance with section 5904, 

9 ‘‘(B) may be imported or brought into the 

10 United States, after their exportation, only if 

11 such articles either are eligible to be released 

12 from customs custody with the partial duty ex13 emption provided in section 5904(d) or are re14 turned to the original producer of such article 

15 as provided in section 5904(c), and 

16 ‘‘(C) may not be sold or held for sale for 

17 domestic consumption in the United States un18 less such articles are removed from their export 

19 packaging and repackaged by the original pro20 ducer into new packaging that does not contain 

21 an export label. 

22 ‘‘(2) ALTERATIONS BY PERSONS OTHER THAN

23 ORIGINAL PRODUCER.—This section shall apply to 

24 articles labeled for export even if the packaging or 

25 the appearance of such packaging to the consumer 


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1 of such articles has been modified or altered by a 

2 person other than the original producer so as to re3 move or conceal or attempt to remove or conceal (in4 cluding by the placement of a sticker over) any ex5 port label. 

6 ‘‘(3) EXPORTS INCLUDE SHIPMENTS TO PUER7 TO RICO.—For purposes of this section, section 

8 5904(d), section 5931, and such other provisions as 

9 the Secretary may specify by regulations, references 

10 to exportation shall be treated as including a ref11 erence to shipment to the Commonwealth of Puerto 

12 Rico. 

13 ‘‘(b) EXPORT LABEL.—For purposes of this section, 

14 an article is labeled for export or contains an export label 

15 if it bears the mark, label, or notice required under section 

16 5904(b). 

17 ‘‘Subchapter D—Penalties 

‘‘Sec. 5931. Civil penalties. 

‘‘Sec. 5932. Criminal penalties. 

18 ‘‘SEC. 5931. CIVIL PENALTIES. 

19 ‘‘(a) OMITTING THINGS REQUIRED OR DOING

20 THINGS FORBIDDEN.—Whoever willfully omits, neglects, 

21 or refuses to comply with any duty imposed upon them 

22 by this chapter, or to do, or cause to be done, any of the 

23 things required by this chapter, or does anything prohib24 ited by this chapter, shall in addition to any other penalty 


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1 provided in this title, be liable to a penalty of $10,000, 

2 to be recovered, with costs of suit, in a civil action, except 

3 where a penalty under subsection (b) or (c) or under sec4 tion 6651 or 6653 or part II of subchapter A of chapter 

5 68 may be collected from such person by assessment. 

6 ‘‘(b) FAILURE TO PAY TAX.—Whoever fails to pay 

7 any tax imposed by this chapter at the time prescribed 

8 by law or regulations, shall, in addition to any other pen9 alty provided in this title, be liable to a penalty of 10 per10 cent of the tax due but unpaid. 

11 ‘‘(c) SALE OF CANNABIS OR CANNABIS PRODUCTS

12 FOR EXPORT.— 

13 ‘‘(1) Every person who sells, relands, or receives 

14 within the jurisdiction of the United States any can15 nabis products which have been labeled or shipped 

16 for exportation under this chapter, 

17 ‘‘(2) every person who sells or receives such re18 landed cannabis products, and 

19 ‘‘(3) every person who aids or abets in such 

20 selling, relanding, or receiving, 

21 shall, in addition to the tax and any other penalty provided 

22 in this title, be liable for a penalty equal to the greater 

23 of $10,000 or 10 times the amount of the tax imposed 

24 by this chapter. All cannabis products relanded within the 

25 jurisdiction of the United States shall be forfeited to the 


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1 United States and destroyed. All vessels, vehicles, and air2 craft used in such relanding or in removing such cannabis 

3 products from the place where relanded, shall be forfeited 

4 to the United States. 

5 ‘‘(d) APPLICABILITY OF SECTION 6665.—The pen6 alties imposed by subsections (b) and (c) shall be assessed, 

7 collected, and paid in the same manner as taxes, as pro8 vided in section 6665(a). 

9 ‘‘(e) CROSS-REFERENCES.—For penalty for failure to 

10 make deposits or for overstatement of deposits, see section 

11 6656. 

12 ‘‘SEC. 5932. CRIMINAL PENALTIES. 

13 ‘‘(a) FRAUDULENT OFFENSES.—Whoever, with in14 tent to defraud the United States— 

15 ‘‘(1) engages in business as a cannabis enter16 prise without filing the application and obtaining the 

17 authorization where required by this chapter or reg18 ulations thereunder, 

19 ‘‘(2) fails to keep or make any record, return, 

20 report, or inventory, or keeps or makes any false or 

21 fraudulent record, return, report, or inventory, re22 quired by this chapter or regulations thereunder, 

23 ‘‘(3) refuses to pay any tax imposed by this 

24 chapter, or attempts in any manner to evade or de25 feat the tax or the payment thereof, 


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1 ‘‘(4) sells or otherwise transfers, contrary to 

2 this chapter or regulations thereunder, any cannabis 

3 products subject to tax under this chapter, or 

4 ‘‘(5) purchases, receives, or possesses, with in5 tent to redistribute or resell, any cannabis product— 

6 ‘‘(A) upon which the tax has not been paid 

7 or determined in the manner and at the time 

8 prescribed by this chapter or regulations there9 under, or 

10 ‘‘(B) which, without payment of tax pursu11 ant to section 5904, have been diverted from 

12 the applicable purpose or use specified in that 

13 section, 

14 shall, for each such offense, be fined not more than 

15 $10,000, or imprisoned not more than 5 years, or both. 

16 ‘‘(b) LIABILITY TO TAX.—Any person who possesses 

17 cannabis products in violation of subsection (a) shall be 

18 liable for a tax equal to the tax on such articles.’’. 

19 (b) ESTABLISHMENT OF TRUST FUND.—Subchapter 

20 A of chapter 98 of the Internal Revenue Code of 1986 

21 is amended by adding at the end the following new section: 

22 ‘‘SEC. 9512. OPPORTUNITY TRUST FUND. 

23 ‘‘(a) CREATION OF TRUST FUND.—There is estab24 lished in the Treasury of the United States a trust fund 

25 to be known as the ‘Opportunity Trust Fund’ (referred 


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1 to in this section as the ‘Trust Fund’), consisting of such 

2 amounts as may be appropriated or credited to such fund 

3 as provided in this section or section 9602(b). 

4 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here5 by appropriated to the Trust Fund amounts equivalent to 

6 the net revenues received in the Treasury from the taxes 

7 imposed under subchapter A of chapter 56. 

8 ‘‘(c) TRANSFERS TO GENERAL FUND.—The Sec9 retary shall pay from time to time from the Trust Fund 

10 into the general fund of the Treasury amounts equivalent 

11 to the amounts appropriated under the Cannabis Adminis12 tration and Opportunity Act.’’. 

13 (c) STUDY.—Not later than 2 years after the date 

14 of the enactment of this Act, and every 5 years thereafter, 

15 the Secretary of the Treasury, or the Secretary’s delegate, 

16 shall— 

17 (1) conduct a study concerning the characteris18 tics of the cannabis industry, including— 

19 (A) the number of persons operating can20 nabis enterprises at each level of such industry, 

21 (B) the volume of sales, 

22 (C) the amount of tax collected each year, 

23 (D) the areas of evasion, and 


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1 (E) the impact of disparate State taxes on 

2 diversion and smuggling of cannabis products, 

3 and 

4 (2) submit to Congress recommendations to im5 prove the regulation of the industry and the admin6 istration of the related tax. 

7 (d) ANNUAL REPORTS REGARDING DETERMINATION

8 OF APPLICABLE RATES.—Not later than 6 months before 

9 the beginning of each calendar year to which section 

10 5901(a)(2) of the Internal Revenue Code of 1986 (as 

11 added by this section) applies, the Secretary of the Treas12 ury, or the Secretary’s delegate, shall make publicly avail13 able a detailed description of the methodology which the 

14 Secretary anticipates using to determine the applicable 

15 rate per ounce and the applicable rate per gram which 

16 will apply for such calendar year under section 5901(c)(2) 

17 of such Code. 

18 (e) DRAWBACK ON TAX FOR DISTILLED SPIRITS

19 USED IN PRODUCTION OF CANNABIS OR HEMP.—Section 

20 5111 of the Internal Revenue Code of 1986 is amended 

21 by striking ‘‘or perfume’’ and inserting ‘‘perfume, can22 nabis products, or hemp-derived products’’. 

23 (f) INTEREST OF INTERNAL REVENUE OFFICER OR

24 EMPLOYEE IN PRODUCTION OF CANNABIS PRODUCTS.— 


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1 Section 7214(b) of the Internal Revenue Code of 1986 is 

2 amended— 

3 (1) in the heading, by striking ‘‘TOBACCO OR

4 LIQUOR PRODUCTION’’ and inserting ‘‘PRODUCTION

5 OF TOBACCO, LIQUOR, OR CANNABIS PRODUCTS’’, 

6 and 

7 (2) by striking ‘‘or cigarettes’’ and inserting 

8 ‘‘cigarettes, or cannabis products (as defined in sec9 tion 5902(a)(1))’’. 

10 (g) PAPERS, TUBES, AND WRAPPERS.—Section 5702 

11 of the Internal Revenue Code of 1986 is amended— 

12 (1) in subsection (e)— 

13 (A) by inserting ‘‘or a cannabis product’’ 

14 after ‘‘tobacco’’, and 

15 (B) by inserting ‘‘(including for use as a 

16 cannabis cigarette wrapper)’’ after ‘‘cigarette 

17 wrapper’’, 

18 (2) in subsection (f), by inserting ‘‘(including 

19 for use in making cannabis cigarettes)’’ after ‘‘mak20 ing cigarettes’’, and 

21 (3) in subsection (o), by inserting ‘‘(including 

22 for use in making cannabis cigarettes)’’ after ‘‘wrap23 per thereof’’. 

24 (h) CONFORMING AMENDMENTS.— 


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1 (1) Section 6103(o)(1)(A) of the Internal Rev2 enue Code of 1986 is amended by striking ‘‘and fire3 arms’’ and inserting ‘‘firearms, and cannabis prod4 ucts’’. 

5 (2) The heading of subsection (a) of section 

6 7608 of such Code is amended by inserting ‘‘CAN7 NABIS PRODUCTS,’’ after ‘‘TOBACCO,’’. 

8 (3) The table of chapters for subtitle E of such 

9 Code is amended by adding at the end the following 

10 new item: 

‘‘CHAPTER 56. CANNABIS PRODUCTS’’. 

11 (4) The table of sections for subchapter A of 

12 chapter 98 of such Code is amended by adding at 

13 the end the following new item: 

‘‘Sec. 9512. Opportunity Trust Fund.’’. 

14 (i) EFFECTIVE DATE.— 

15 (1) IN GENERAL.—Except as otherwise pro16 vided in this subsection, the amendments made by 

17 this section shall apply to removals, and applications 

18 under section 5912 of the Internal Revenue Code of 

19 1986 (as added by subsection (a)), after 180 days 

20 after the date of the enactment of this Act. 

21 (2) OTHER AMENDMENTS.—The amendments 

22 made by subsections (b), (c), (d), (f), (g), and (h) 

23 shall take effect on the date of the enactment of this 

24 Act. 


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1 TITLE V—PUBLIC HEALTH, CAN2 NABIS ADMINISTRATION, AND 

3 TRADE PRACTICES 

4 Subtitle A—Public Health 

5 SEC. 501. FDA REGULATION OF CANNABIS. 

6 (a) IN GENERAL.—The Federal Food, Drug, and 

7 Cosmetic Act (21 U.S.C. 301 et seq.) is amended by add8 ing at the end the following: 

9 ‘‘CHAPTER XI—CANNABIS PRODUCTS 

10 ‘‘SEC. 1101. CENTER FOR CANNABIS PRODUCTS. 

11 ‘‘Not later than 90 days after the date of enactment 

12 of the ‘Cannabis Administration and Opportunity Act’, the 

13 Secretary shall establish within the Food and Drug Ad14 ministration the Center for Cannabis Products, which 

15 shall report to the Commissioner of Food and Drugs in 

16 the same manner as the other agency centers within the 

17 Food and Drug Administration. The Center shall be re18 sponsible for the implementation of this chapter and re19 lated matters assigned by the Commissioner. 

20 ‘‘SEC. 1102. ADULTERATED CANNABIS PRODUCTS. 

21 ‘‘(a) IN GENERAL.—A cannabis product shall be 

22 deemed to be adulterated if— 

23 ‘‘(1) it consists in whole or in part of any filthy, 

24 putrid, or decomposed substance, or is otherwise 

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1 terious substance that may render the product inju2 rious to health; 

3 ‘‘(2) it has been manufactured, prepared, proc4 essed, packed, or held in insanitary conditions 

5 whereby it may have been contaminated with filth, 

6 or whereby it may have been rendered injurious to 

7 health; 

8 ‘‘(3) it bears or contains any poisonous or dele9 terious substance that may render it injurious to 

10 health; 

11 ‘‘(4) its container is composed, in whole or in 

12 part, of any poisonous or deleterious substance that 

13 may render the contents injurious to health; 

14 ‘‘(5) it bears or contains an unsafe color addi15 tive that is unsafe within the meaning of section 

16 721(a); or 

17 ‘‘(6) the methods used in, or the facilities or 

18 controls used for, its manufacture, preparing, proc19 essing, packing, or storage are not in conformity 

20 with applicable requirements under section 1105(c). 

21 ‘‘(b) EXCEPTIONS TO CERTAIN FOOD REQUIRE22 MENTS FOR FOODS CONTAINING CANNABIS.—Provided 

23 that an article that is a food (as defined in section 201(f)) 

24 and that is also a cannabis product (as defined in section 

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1 ments for food under chapter IV and all applicable re2 quirements for cannabis products under this chapter, such 

3 article shall not be deemed— 

4 ‘‘(1) adulterated under section 402(a)(2)(C)(i) 

5 solely on account of constituents made or derived 

6 from cannabis; or 

7 ‘‘(2) a food to which has been added a drug for 

8 which substantial clinical investigations have been 

9 instituted and for which the existence of such inves10 tigations has been made public for purposes of sec11 tion 301(ll) solely on account of constituents made 

12 or derived from cannabis. 

13 ‘‘SEC. 1103. MISBRANDED CANNABIS PRODUCTS. 

14 ‘‘A cannabis product shall be deemed to be mis15 branded— 

16 ‘‘(1) if its labeling or advertising is false or mis17 leading in any particular; 

18 ‘‘(2) unless it bears a label containing— 

19 ‘‘(A) a prominent statement that the prod20 uct contains cannabis; 

21 ‘‘(B) the name and place of business of its 

22 manufacturer, packer, or distributor; 

23 ‘‘(C) an accurate statement of the quantity 

24 of its contents in terms of weight, measure, or 

25 numerical count; 


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1 ‘‘(D) a statement of its form as specified 

2 in regulations promulgated pursuant to section 

3 1105(a); 

4 ‘‘(E) the amount of tetrahydrocannabinol 

5 in the product, and if the product is packaged 

6 and labeled in such a way as to suggest more 

7 than one serving, dose, or the equivalent, the 

8 amount of tetrahydrocannabinol in such serv9 ing, dose, or the equivalent; 

10 ‘‘(F) adequate directions for use, if deemed 

11 necessary for the protection of the public health 

12 in regulations promulgated pursuant to section 

13 1105(a); 

14 ‘‘(G) adequate directions against use by 

15 children, if deemed necessary for the protection 

16 of the public health in regulations promulgated 

17 pursuant to section 1105(a); and 

18 ‘‘(H) such other information as the Sec19 retary determines, in regulations promulgated 

20 pursuant to section 1105(a), to be necessary for 

21 the protection of the public health; 

22 ‘‘(3) if its label or labeling bears a statement 

23 describing the role of a cannabis constituent in24 tended to affect the structure or any function of the 

25 body of humans or other animals, unless— 


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1 ‘‘(A) there is substantiation that such 

2 statement is truthful and not misleading; and 

3 ‘‘(B) the statement contains, prominently 

4 displayed and in boldface type, the following: 

5 ‘This statement has not been evaluated by the 

6 Food and Drug Administration. This product is 

7 not intended to diagnose, treat, cure, or prevent 

8 any disease.’; 

9 ‘‘(4) if any word, statement, or other informa10 tion required by or under authority of this Act to 

11 appear on the label or labeling is not prominently 

12 placed thereon with such conspicuousness (as com13 pared with other words, statements, designs, or de14 vices, in the labeling) and in such terms as to render 

15 it likely to be read and understood by the ordinary 

16 individual under customary conditions of purchase 

17 and use; 

18 ‘‘(5) if it purports to be, or is represented as, 

19 a cannabis product which is subject to a cannabis 

20 product standard established under section 1106 un21 less such cannabis product is in all respects in con22 formity with such standard; 

23 ‘‘(6) if its sale, distribution, or label or labeling 

24 is not in conformity with applicable requirements 

25 under subsections (a) and (b) of section 1105; 


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1 ‘‘(7) if it was manufactured, prepared, propa2 gated, compounded, or processed in an establishment 

3 not duly registered under section 1104 or if it was 

4 not included in a list required by section 1104; or 

5 ‘‘(8) if it is intended for consumption or appli6 cation by an individual under 21 years of age. 

7 ‘‘SEC. 1104. ANNUAL REGISTRATION. 

8 ‘‘(a) REGISTRATION BY OWNERS AND OPERATORS.— 

9 On or before December 31 of each year, every person who 

10 owns or operates any establishment in any State engaged 

11 in the manufacture, preparation, compounding, or proc12 essing of a cannabis product shall register with the Sec13 retary the name, places of business, and all such establish14 ments of that person. 

15 ‘‘(b) REGISTRATION BY NEW OWNERS AND OPERA16 TORS.—Every person upon first engaging in the manufac17 ture, preparation, compounding, or processing of a can18 nabis product in any establishment owned or operated in 

19 any State by that person shall immediately register with 

20 the Secretary that person’s name, place of business, and 

21 such establishment. 

22 ‘‘(c) REGISTRATION OF ADDED ESTABLISHMENTS.— 

23 Every person required to register under subsection (a) or 

24 (b) shall immediately register with the Secretary any addi25 tional establishment which that person owns or operates 


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1 in the United States and in which that person begins the 

2 manufacture, preparation, compounding, or processing of 

3 a cannabis product. 

4 ‘‘(d) UNIFORM PRODUCT IDENTIFICATION SYS5 TEM.—The Secretary may by regulation prescribe a uni6 form system for the identification of cannabis products 

7 and may require that persons who are required to list such 

8 cannabis products under subsection (g) shall list such can9 nabis products in accordance with such system. 

10 ‘‘(e) PUBLIC ACCESS TO REGISTRATION INFORMA11 TION.—The Secretary shall make available for inspection 

12 any registration filed under this section. 

13 ‘‘(f) REGISTRATION BY FOREIGN ESTABLISH14 MENTS.—Any establishment within a foreign country en15 gaged in the manufacture, preparation, compounding, or 

16 processing of a cannabis product that is imported or of17 fered for import into the United States, shall register 

18 under subsection (a), (b), or (c), as applicable, and shall 

19 include with the registration the name of the United 

20 States agent for the establishment. 

21 ‘‘(g) REGISTRATION INFORMATION.— 

22 ‘‘(1) PRODUCT LIST.— 

23 ‘‘(A) IN GENERAL.—Every person who reg24 isters with the Secretary under subsection (a), 


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1 (b), or (c) shall, at the time of registration 

2 under such subsection, file with the Secretary— 

3 ‘‘(i) a list of all cannabis products 

4 which are being manufactured, prepared, 

5 compounded, or processed by that person 

6 for commercial distribution and which have 

7 not been included in any list of cannabis 

8 products filed by that person with the Sec9 retary under this paragraph or paragraph 

10 (2) before such time of registration; and 

11 ‘‘(ii) such other information as the 

12 Secretary, in consultation with the Sec13 retary of the Treasury and the Attorney 

14 General, may require, by regulation, to 

15 carry out the purposes of the Cannabis Ad16 ministration and Opportunity Act, includ17 ing the amendments made by such Act, in18 cluding chapter 56 of subtitle E of the In19 ternal Revenue Code of 1986. 

20 ‘‘(B) FORM AND MANNER OF LIST.—The 

21 list under subparagraph (A)(i) shall be pre22 pared in such form and manner as the Sec23 retary may prescribe and shall be accompanied 

24 by a copy of all consumer information and other 

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1 ative sampling of advertisements for such can2 nabis product, and, upon request by the Sec3 retary, a copy of all advertisements for a par4 ticular cannabis product. 

5 ‘‘(2) REPORT OF ANY CHANGE IN PRODUCT

6 LIST.—Each person who registers with the Secretary 

7 under this section shall report to the Secretary as 

8 follows: 

9 ‘‘(A) Prior to the introduction into com10 mercial distribution of a cannabis product that 

11 has not been included in any list previously filed 

12 by the registrant, a list containing such can13 nabis product. 

14 ‘‘(B) A notice of discontinuance of the 

15 manufacture, preparation, compounding, or 

16 processing for commercial distribution of a can17 nabis product included in a list filed under sub18 paragraph (A) or paragraph (1), and the date 

19 of such discontinuance. 

20 ‘‘(C) A notice of resumption of the manu21 facture, preparation, compounding, or proc22 essing for commercial distribution of the can23 nabis product with respect to which a notice of 

24 discontinuance was reported under subpara25 graph (B). 


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1 ‘‘(D) A list of each cannabis product in2 cluded in a notice filed under subparagraph (C) 

3 prior to the resumption of the introduction into 

4 commercial distribution of such cannabis prod5 uct. 

6 ‘‘(3) PUBLICATION.—The Secretary shall pub7 lish on the website of the Food and Drug Adminis8 tration every registration and list filed pursuant to 

9 this section and the information accompanying every 

10 list not later than 10 days after the applicable date 

11 of filing. 

12 ‘‘(4) DEPARTMENT OF THE TREASURY AC13 CESS.—The Secretary shall establish a format and 

14 procedure for appropriate Department of the Treas15 ury officials to access the information received by 

16 the Secretary under this subsection, in a prompt and 

17 secure manner. 

18 ‘‘SEC. 1105. GENERAL PROVISIONS FOR CONTROL OF CAN19 NABIS PRODUCTS. 

20 ‘‘(a) RESTRICTIONS ON SALE AND DISTRIBUTION.— 

21 ‘‘(1) REMOTE SALES.—Not later than 2 years 

22 after the date of enactment of the Cannabis Admin23 istration and Opportunity Act, the Secretary shall 

24 propose, and not later than 3 years after such date 

25 of enactment the Secretary shall finalize, regulations 


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1 regarding the promotion, sale, and distribution of 

2 cannabis products that occur through means other 

3 than a direct, face-to-face exchange between a re4 tailer and a consumer, in order to prevent the sale 

5 and distribution of cannabis products to individuals 

6 who have not attained the age of 21, including re7 quirements for age verification. 

8 ‘‘(2) PREVENTING USE OF CANNABIS PRODUCTS

9 IN MINORS.—The Secretary shall, by regulation, im10 pose such restrictions on advertising, promotion, and 

11 marketing of cannabis products as the Secretary de12 termines necessary and appropriate to prevent the 

13 consumption or application of cannabis products by 

14 individuals under 21 years of age. Such regulations 

15 shall prohibit the advertising, promotion, and mar16 keting of cannabis products, whether directly or in17 directly, to individuals under 21 years of age, and 

18 any other action that has the primary purpose of ini19 tiating or increasing the use of cannabis products in 

20 such individuals. 

21 ‘‘(3) OTHER REGULATIONS.—In addition to the 

22 restrictions under paragraphs (1) and (2), the Sec23 retary may, by regulation, impose other restrictions 

24 on the sale and distribution of cannabis products, in25 cluding restrictions on the access to, and the adverVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00185 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 tising and promotion of, the cannabis product, if the 

2 Secretary determines that such regulation would be 

3 appropriate for the protection of the public health. 

4 ‘‘(4) GOOD FAITH CONSULTATION WITH INDIAN

5 TRIBES.—In issuing regulations under paragraphs 

6 (1), (2), and (3), the Secretary shall conduct good 

7 faith, meaningful, and timely consultations with In8 dian Tribes (as defined in section 3 of the Cannabis 

9 Administration and Opportunity Act). 

10 ‘‘(b) LABELING STATEMENTS.—The label and label11 ing of a cannabis product shall bear such appropriate 

12 statements of the restrictions required by a regulation 

13 under subsection (a) as the Secretary may in such regula14 tion prescribe. 

15 ‘‘(c) GOOD MANUFACTURING PRACTICE REQUIRE16 MENTS.—The Secretary shall issue regulations requiring 

17 that the methods used in, and the facilities and controls 

18 used for, the manufacture, preparing, processing, packing, 

19 and holding of a cannabis product conform to current good 

20 manufacturing practice, including testing for pesticide 

21 chemical residues regardless of whether a tolerance for 

22 such chemical residues has been established. 


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1 ‘‘SEC. 1106. CANNABIS PRODUCT STANDARDS. 

2 ‘‘(a) IN GENERAL.—The Secretary shall, by regula3 tion, adopt cannabis product standards that are appro4 priate for protection of the public health. 

5 ‘‘(b) CONTENT OF STANDARDS.—A cannabis product 

6 standard established under this section shall include provi7 sions— 

8 ‘‘(1) on the ingredients of the cannabis product, 

9 including, where appropriate— 

10 ‘‘(A) cannabinoid yields of the product, 

11 which may consider or address, as appropriate, 

12 different types of cannabinoids and the inter13 action between the constituents of the product; 

14 ‘‘(B) provisions respecting the construc15 tion, components, ingredients, additives, con16 stituents, including smoke constituents, and 

17 properties of the cannabis product, which may 

18 consider, as appropriate, the interaction be19 tween constituents and components of the can20 nabis product; and 

21 ‘‘(C) provisions for the reduction or elimi22 nation of harmful constituents or components 

23 of the product, including smoke constituents; 

24 ‘‘(2) for the testing of the cannabis product; 


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1 ‘‘(3) requiring that the results of testing the 

2 cannabis product show that the cannabis product is 

3 in conformity with applicable standards; 

4 ‘‘(4) for the measurement of the characteristics 

5 of the cannabis product, where appropriate; 

6 ‘‘(5) requiring that the sale and distribution of 

7 the cannabis product be restricted but only to the 

8 extent that the sale and distribution of a cannabis 

9 product may be restricted under a regulation under 

10 this Act; 

11 ‘‘(6) where appropriate, requiring the use and 

12 prescribing the form and content of labeling for the 

13 proper use of the cannabis product and any potential 

14 adverse effects of the product; and 

15 ‘‘(7) requiring cannabis products containing 

16 foreign-grown cannabis to meet the same standards 

17 applicable to cannabis products containing domesti18 cally grown cannabis. 

19 ‘‘(c) PERIODIC REEVALUATION OF STANDARDS.— 

20 The Secretary shall provide for periodic evaluation of can21 nabis product standards established under this section to 

22 determine whether such standards should be changed to 

23 reflect new medical, scientific, or other technological data. 


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1 ‘‘SEC. 1107. RECALL AUTHORITY. 

2 ‘‘(a) IN GENERAL.—If the Secretary finds that there 

3 is a reasonable probability that a cannabis product would 

4 cause serious, adverse health consequences or death, the 

5 Secretary shall issue an order requiring the appropriate 

6 person (including the manufacturers, importers, distribu7 tors, or retailers of the cannabis product) to immediately 

8 cease distribution of such cannabis product. The order 

9 shall provide the person subject to the order with an op10 portunity to appear and introduce testimony, to be held 

11 not later than 20 days after the date of the issuance of 

12 the order, on the actions required by the order and on 

13 whether the order should be amended to require a recall 

14 of such cannabis product. If, after providing an oppor15 tunity to appear and introduce testimony, the Secretary 

16 determines that inadequate grounds exist to support the 

17 actions required by the order, the Secretary shall vacate 

18 the order. 

19 ‘‘(b) AMENDMENT OF ORDER TO REQUIRE RE20 CALL.— 

21 ‘‘(1) IN GENERAL.—If, after providing an op22 portunity to appear and introduce testimony under 

23 subsection (a), the Secretary determines that the 

24 order should be amended to include a recall of the 

25 cannabis product with respect to which the order 

26 was issued, the Secretary shall, except as provided in 


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1 paragraph (2), amend the order to require a recall. 

2 The Secretary shall specify a timetable in which the 

3 cannabis product recall will occur and shall require 

4 periodic reports to the Secretary describing the 

5 progress of the recall. 

6 ‘‘(2) NOTICE.—An amended order under para7 graph (1)— 

8 ‘‘(A) shall not include recall of a cannabis 

9 product from individuals; and 

10 ‘‘(B) shall provide for notice to persons 

11 subject to the risks associated with the use of 

12 such cannabis product. 

13 In providing the notice required by subparagraph 

14 (B), the Secretary may use the assistance of retail15 ers and other persons who distributed such cannabis 

16 product. If a significant number of such persons 

17 cannot be identified, the Secretary shall notify such 

18 persons pursuant to section 705(b). 

19 ‘‘SEC. 1108. RECORDS AND REPORTS ON CANNABIS PROD20 UCTS. 

21 ‘‘(a) IN GENERAL.—Every person who is a cannabis 

22 product manufacturer or importer of a cannabis product 

23 shall establish and maintain such records, make such re24 ports, and provide such information, as the Secretary may 

25 by regulation reasonably require to assure that such canVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00190 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 nabis product is not adulterated or misbranded and to oth2 erwise protect public health. 

3 ‘‘(b) REPORTS OF REMOVALS AND CORRECTIONS.— 

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), the Secretary shall by regulation require 

6 a cannabis product manufacturer or importer of a 

7 cannabis product to report promptly to the Secretary 

8 any corrective action taken or removal from the 

9 market of a cannabis product undertaken by such 

10 manufacturer or importer if the removal or correc11 tion was undertaken— 

12 ‘‘(A) to reduce a risk to health posed by 

13 the cannabis product; or 

14 ‘‘(B) to remedy a violation of this chapter 

15 caused by the cannabis product which may 

16 present a risk to health. 

17 A cannabis product manufacturer or importer of a 

18 cannabis product who undertakes a corrective action 

19 or removal from the market of a cannabis product 

20 that is not required to be reported under this sub21 section shall keep a record of such correction or re22 moval. 

23 ‘‘(2) EXCEPTION.—No report of the corrective 

24 action or removal of a cannabis product may be re25 quired under paragraph (1) if a report of the correcVerDate Sep 11 2014 00:41 Jun 01, 2024 Jkt 049200 PO 00000 Frm 00191 Fmt 6652 Sfmt 6201 E:\BILLS\S4226.IS S4226

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1 tive action or removal is required and has been sub2 mitted under subsection (a). 

3 ‘‘SEC. 1109. PROHIBITION ON FLAVORED ELECTRONIC CAN4 NABIS PRODUCT DELIVERY SYSTEM. 

5 ‘‘(a) IN GENERAL.—Any electronic cannabis product 

6 delivery system shall not contain an artificial or natural 

7 flavor (other than cannabis) that is a characterizing fla8 vor, including menthol, mint, mango, strawberry, grape, 

9 orange, clove, cinnamon, pineapple, vanilla, coconut, lico10 rice, cocoa, chocolate, cherry, or coffee. 

11 ‘‘(b) DEFINITION.—For purposes of this section, the 

12 term ‘electronic cannabis product delivery system’ means 

13 an electronic device that delivers a cannabis product via 

14 an aerosolized solution to the user inhaling from the de15 vice, and any component, liquid, part, or accessory of such 

16 a device, whether or not sold separately. 

17 ‘‘SEC. 1110. PRESERVATION OF STATE, TRIBAL, AND LOCAL 

18 AUTHORITY. 

19 ‘‘(a) IN GENERAL.—Nothing in this chapter, or rules 

20 promulgated under this chapter, shall be construed to 

21 limit the authority of a Federal agency (including the 

22 Armed Forces), a State or political subdivision of a State, 

23 or the government of an Indian Tribe (as defined in sec24 tion 3 of the Cannabis Administration and Opportunity 

25 Act) to enact, adopt, promulgate, and enforce any law, 


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1 rule, regulation, or other measure with respect to cannabis 

2 products that is in addition to, or more stringent than, 

3 requirements established under this chapter, including a 

4 law, rule, regulation, or other measure relating to or pro5 hibiting the manufacture, sale, distribution, possession, 

6 exposure to, access to, advertising and promotion of, or 

7 use of cannabis products by individuals of any age, infor8 mation reporting to the State or Indian Tribe (as so de9 fined), or measures relating to fire safety or environmental 

10 standards for cannabis products. No provision of this 

11 chapter shall limit or otherwise affect any State, Tribal, 

12 or local taxation of cannabis products. 

13 ‘‘(b) RULE OF CONSTRUCTION REGARDING PRODUCT

14 LIABILITY.—No provision of this chapter relating to a 

15 cannabis product shall be construed to modify or otherwise 

16 affect any action or the liability of any person under the 

17 product liability law of any State or Indian Tribe (as so 

18 defined).’’. 

19 SEC. 502. AMENDMENTS TO THE FEDERAL FOOD, DRUG, 

20 AND COSMETIC ACT. 

21 (a) DEFINITIONS.—Section 201 of the Federal Food, 

22 Drug, and Cosmetic Act (21 U.S.C. 321) is amended— 

23 (1) in paragraph (g)(1)(C), by striking ‘‘(other 

24 than food)’’ and inserting ‘‘(other than food or can25 nabis products)’’; 


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1 (2) in paragraph (ff)(1), by striking ‘‘(other 

2 than tobacco)’’ and inserting ‘‘(other than a tobacco 

3 product or cannabis product)’’; 

4 (3) in paragraph (rr)(4), by inserting ‘‘cannabis 

5 product,’’ after ‘‘medical device’’; and 

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

7 ‘‘(tt)(1)(A) The term ‘cannabis’ means— 

8 ‘‘(i) all parts of the plant Cannabis sativa L., 

9 whether growing or not; 

10 ‘‘(ii) the seeds thereof; 

11 ‘‘(iii) the resin extracted from any part of such 

12 plant; and 

13 ‘‘(iv) every compound, manufacture, salt, deriv14 ative, mixture, or preparation of such plant, its 

15 seeds or resin. 

16 ‘‘(B) The term ‘cannabis’ does not include— 

17 ‘‘(i) hemp, as defined in section 297A of the 

18 Agricultural Marketing Act of 1946; or 

19 ‘‘(ii) the mature stalks of such plant, fiber pro20 duced from such stalks, oil or cake made from the 

21 seeds of such plant, any other compound, manufac22 ture, salt, derivative, mixture, or preparation of such 

23 mature stalks (except the resin extracted therefrom), 

24 fiber, oil, or cake, or the sterilized seed of such plant 

25 which is incapable of germination. 


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1 ‘‘(2)(A) The term ‘cannabis product’ means any 

2 product made or derived from cannabis that is intended 

3 for consumption or applied to the body of man or other 

4 animals, including any component of such product. 

5 ‘‘(B) A ‘cannabis product’ does not mean an article 

6 that is a drug within the meaning of paragraph (g)(1). 

7 ‘‘(3) With respect to cannabis or a cannabis product, 

8 the term ‘manufacture’ includes the planting, cultivation, 

9 growing, and harvesting of cannabis.’’. 

10 (b) PROHIBITED ACTS.—Section 301 of the Federal 

11 Food, Drug, and Cosmetic Act (21 U.S.C. 331) is amend12 ed— 

13 (1) by inserting ‘‘cannabis product,’’ after ‘‘to14 bacco product,’’ each place it appears in paragraphs 

15 (g) and (h); 

16 (2) in paragraph (j), by striking ‘‘or 920(b)’’ 

17 and inserting ‘‘920(b), or 1104’’; 

18 (3) in paragraph (p)— 

19 (A) by striking ‘‘510 or 905’’ and inserting 

20 ‘‘510, 905, or 1104’’; 

21 (B) by striking ‘‘or 905(j)’’ and inserting 

22 ‘‘905(j), or 1104(g)’’; and 

23 (C) by striking ‘‘or 905(i)(3)’’ and insert24 ing ‘‘, 905(i)(3), or 1104(g)(2)’’; 


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1 (4) in paragraph (q)(2) by inserting ‘‘, cannabis 

2 product,’’ after ‘‘device’’; 

3 (5) in paragraph (r), by inserting ‘‘cannabis 

4 product,’’ after ‘‘device,’’ each place it appears; and 

5 (6) by adding at the end the following: 

6 ‘‘(jjj)(1) The sale or distribution of a cannabis prod7 uct to any person younger than 21 years of age. 

8 ‘‘(2) The sale or distribution, in any retail single 

9 transaction, of more than 10 ounces of any cannabis prod10 uct. 

11 ‘‘(3) The sale or distribution of an article that is a 

12 cannabis product and that contains alcohol, caffeine, or 

13 nicotine. 

14 ‘‘(4) The failure of a manufacturer or distributor to 

15 notify the Attorney General and the Secretary of the 

16 Treasury of its knowledge of cannabis products used in 

17 illicit trade. 

18 ‘‘(kkk)(1) The introduction or delivery for introduc19 tion into commerce of any cannabis product that is adul20 terated or misbranded. 

21 ‘‘(2) The adulteration or misbranding of any can22 nabis product in commerce. 

23 ‘‘(3) The receipt in commerce of any cannabis prod24 uct that is adulterated or misbranded, and the delivery 

25 or proffered delivery thereof for pay or otherwise. 


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1 ‘‘(4) The alteration, mutilation, destruction, oblitera2 tion, or removal of the whole or any part of the labeling 

3 of, or the doing of any other act with respect to a cannabis 

4 product, if such act is done while such article is held for 

5 sale (whether or not the first sale) after shipment in com6 merce and results in such article being adulterated or mis7 branded. 

8 ‘‘(lll) The failure to comply with the requirements of 

9 section 524D.’’. 

10 (c) SEIZURE AUTHORITIES.—Section 304 of the Fed11 eral Food, Drug, and Cosmetic Act (21 U.S.C. 334) is 

12 amended— 

13 (1) in subsection (a)— 

14 (A) in paragraph (1), by inserting ‘‘can15 nabis product,’’ after ‘‘drug,’’; and 

16 (B) in paragraph (2), by inserting ‘‘or can17 nabis product’’ after ‘‘tobacco product’’; 

18 (2) in subsection (d)(1), by inserting ‘‘cannabis 

19 product,’’ after ‘‘tobacco product,’’; and 

20 (3) in subsection (g), by striking ‘‘or tobacco 

21 product’’ each place it appears in paragraphs (1) 

22 and (2)(A) and inserting ‘‘, tobacco product, or can23 nabis product’’. 


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1 (d) FACTORY INSPECTION.—Section 704 of the Fed2 eral Food, Drug, and Cosmetic Act (21 U.S.C. 374) is 

3 amended— 

4 (1) in subsection (a)— 

5 (A) by inserting ‘‘cannabis products,’’ after 

6 ‘‘tobacco products,’’ each place it appears; 

7 (B) by striking ‘‘or tobacco products’’ each 

8 place it appears and inserting ‘‘tobacco prod9 ucts, or cannabis products’’; and 

10 (C) by striking ‘‘and tobacco products’’ 

11 and inserting ‘‘tobacco products, and cannabis 

12 products’’; and 

13 (2) in subsection (b)(1), by inserting ‘‘cannabis 

14 product,’’ after ‘‘tobacco product,’’. 

15 (e) PUBLICITY.—Section 705(b) of the Federal Food, 

16 Drug, and Cosmetic Act (21 U.S.C. 375(b)) is amended 

17 by inserting ‘‘cannabis products,’’ after ‘‘tobacco prod18 ucts,’’. 

19 (f) PRESUMPTION.—Section 709 of the Federal 

20 Food, Drug, and Cosmetic Act (21 U.S.C. 379a) is 

21 amended by inserting ‘‘cannabis product,’’ after ‘‘tobacco 

22 product,’’. 

23 (g) IMPORTS AND EXPORTS.—Section 801 of the 

24 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 381) 

25 is amended— 


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1 (1) in subsection (a)— 

2 (A) by inserting ‘‘cannabis products,’’ after 

3 ‘‘tobacco products,’’; 

4 (B) by striking ‘‘or tobacco products’’ each 

5 place it appears and inserting ‘‘, tobacco prod6 ucts, or cannabis products’’; and 

7 (C) by striking ‘‘or section 905(h)’’ and in8 serting ‘‘, 905(h), or 1104’’; and 

9 (2) in subsection (e), by striking ‘‘tobacco prod10 uct or’’ and inserting ‘‘tobacco product, cannabis 

11 product, or’’. 

12 SEC. 503. EXPEDITED REVIEW. 

13 Subchapter A of chapter V of the Federal Food, 

14 Drug, and Cosmetic Act (21 U.S.C. 351 et seq.) is amend15 ed by adding at the end the following: 

16 ‘‘SEC. 524C. EXPEDITED REVIEW OF CERTAIN DRUGS CON17 TAINING CANNABIS. 

18 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 

19 shall establish a program to expedite the development and 

20 review of applications for drugs containing cannabis that 

21 are manufactured by a small business concerned owned 

22 and controlled by socially and economically disadvantaged 

23 individuals or Native entities that operate in the cannabis 

24 industry. 


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1 ‘‘(b) REQUEST FOR DESIGNATION.—A sponsor of a 

2 drug containing cannabis that is manufactured by a small 

3 business concern owned and controlled by socially and eco4 nomically disadvantaged individuals or Native entities that 

5 operate in the cannabis industry may request that the Sec6 retary designate such drug for expedited review under this 

7 section. A request for designation may be made concur8 rently with, or at any time after, the submission of an 

9 application for the investigation of the drug under section 

10 505(i) or section 351(a)(3) of the Public Health Service 

11 Act. 

12 ‘‘(c) ACTIONS.—The actions to expedite the develop13 ment and review of an application designated for expedited 

14 review under this section may include, as appropriate— 

15 ‘‘(1) holding meetings with the sponsor and the 

16 review team throughout the development of the 

17 drug; 

18 ‘‘(2) providing timely advice to, and interactive 

19 communication with, the sponsor regarding the de20 velopment of the drug to ensure that the develop21 ment program to gather the nonclinical and clinical 

22 data necessary for approval is as efficient as prac23 ticable; and 

24 ‘‘(3) priority review, as described in the Manual 

25 of Policies and Procedures of the Food and Drug 


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1 Administration and goals identified in the letters de2 scribed in section 101(b) of the Prescription Drug 

3 User Fee Amendments of 2017. 

4 ‘‘(d) EXPEDITED REVIEW GUIDANCE.—Not later 

5 than 1 year after the date of enactment of the Cannabis 

6 Administration and Opportunity Act, and after good faith, 

7 meaningful, and timely consultation with Native entities, 

8 the Secretary shall issue guidance on the implementation 

9 of this section. Such guidance shall— 

10 ‘‘(1) set forth the process by which a person 

11 may seek a designation under subsection (b); and 

12 ‘‘(2) identify the criteria the Secretary will use 

13 in evaluating a request for designation under this 

14 section. 

15 ‘‘(e) DEFINITIONS.—In this section: 

16 ‘‘(1) DRUG CONTAINING CANNABIS.—The term 

17 ‘drug containing cannabis’ means any drug that con18 tains any article made or derived from cannabis. 

19 ‘‘(2) NATIVE ENTITY.—The term ‘Native entity’ 

20 means— 

21 ‘‘(A) an Indian Tribe (as defined in section 

22 3 of the Cannabis Administration and Oppor23 tunity Act); 


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1 ‘‘(B) a Native Corporation (as defined in 

2 section 3 of the Alaska Native Claims Settle3 ment Act (43 U.S.C. 1602)); and 

4 ‘‘(C) a Native Hawaiian-serving entity. 

5 ‘‘(3) NATIVE HAWAIIAN-SERVING ENTITY.—The 

6 term ‘Native Hawaiian-serving entity’ means— 

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

8 defined in section 6207 of the Elementary and 

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

10 7517)); 

11 ‘‘(B) the Department of Hawaiian Home 

12 Lands; and 

13 ‘‘(C) the Office of Hawaiian Affairs. 

14 ‘‘(4) SMALL BUSINESS CONCERN OWNED AND

15 CONTROLLED BY SOCIALLY AND ECONOMICALLY DIS16 ADVANTAGED INDIVIDUALS.—The term ‘small busi17 ness concern owned and controlled by socially and 

18 economically disadvantaged individuals’ has the 

19 meaning given the term in section 8(d)(3)(C) of the 

20 Small Business Act. 

21 ‘‘SEC. 524D. SECURITY REQUIREMENTS FOR DRUGS CON22 TAINING CANNABIS. 

23 ‘‘(a) IN GENERAL.—The sponsor of any application 

24 under section 505 for a drug containing cannabis shall 

25 provide effective controls and procedures to guard against 


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1 theft and diversion of such drug, which may include, if 

2 the Secretary determines necessary, a risk evaluation and 

3 mitigation strategy under section 505–1. 

4 ‘‘(b) STANDARDS.—The Secretary shall prescribe, by 

5 regulation, standards for controls and procedures for 

6 drugs described in subsection (a). 

7 ‘‘(c) DEFINITION.—For purposes of this section, the 

8 term ‘drug containing cannabis’ means any drug that con9 tains any article made or derived from cannabis.’’. 

10 SEC. 504. REGULATION OF CANNABIDIOL. 

11 (a) CBD AS A DIETARY SUPPLEMENT.—Section 

12 201(ff)(3)(B) of the Federal Food, Drug, and Cosmetic 

13 Act (21 U.S.C. 321(ff)(3)(B)) is amended, in the matter 

14 preceding subclause (i), by inserting ‘‘, except in the case 

15 of cannabidiol derived from hemp (as defined in section 

16 297A of the Agricultural Marketing Act of 1946)’’ after 

17 ‘‘include’’. 

18 (b) ADULTERATION.—Section 402 of the Federal 

19 Food, Drug, and Cosmetic Act (21 U.S.C. 342) is amend20 ed by adding at the end the following new subsection: 

21 ‘‘(j)(1) If it is a dietary supplement that contains 

22 cannabidiol, unless— 

23 ‘‘(A) such dietary supplement contains no more 

24 than an amount of cannabidiol per recommended 

25 daily serving that the Secretary may establish (and 


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1 revise or repeal as appropriate), subject to para2 graph (2), through an interim final rule, notwith3 standing any requirement for notice and comment 

4 that may otherwise apply under section 553 of title 

5 5, United States Code; 

6 ‘‘(B) such dietary supplement is the subject of 

7 a notification submitted to the Secretary in accord8 ance with section 413(a)(2); and 

9 ‘‘(C) the labeling and packaging of such dietary 

10 supplement conforms with any requirements that the 

11 Secretary establishes regarding labeling or pack12 aging of dietary supplements containing cannabidiol 

13 (which may be promulgated (and revised or repealed 

14 as appropriate) by the Secretary through an interim 

15 final rule, notwithstanding any requirement for no16 tice and comment that may otherwise apply under 

17 section 553 of title 5, United States Code). 

18 ‘‘(2)(A) The amount of cannabidiol established in ac19 cordance with paragraph (1)(A)— 

20 ‘‘(i) shall be a threshold above which the Sec21 retary may not accept new dietary ingredient notifi22 cations; and 

23 ‘‘(ii) shall not be interpreted as a determination 

24 that lower amounts of cannabidiol are safe. 


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1 ‘‘(B) The Secretary shall establish such a threshold 

2 based on such factors as the Secretary determines to be 

3 appropriate, which may include a consideration of whether 

4 the review of new dietary ingredient notifications for prod5 ucts containing higher levels of cannabidiol may be unduly 

6 burdensome.’’. 

7 (c) NEW DIETARY INGREDIENT.—Section 413(a)(1) 

8 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

9 350b(a)(1)) is amended by inserting ‘‘contains no 

10 cannabidiol and’’ before ‘‘contains only dietary ingredi11 ents’’. 

12 (d) NEW PROHIBITED ACT.—Section 301 of the Fed13 eral Food, Drug, and Cosmetic Act (21 U.S.C. 331), as 

14 amended by section 502(b)(6), is further amended by add15 ing at the end the following: 

16 ‘‘(mmm) The introduction or delivery for introduction 

17 into interstate commerce of any product labeled as a die18 tary supplement that fails to meet the definition of a die19 tary supplement under section 201(ff).’’. 

20 (e) NEW IMPORT EXCLUSION.—Section 801(a) of the 

21 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 381(a)) 

22 is amended in paragraph (3) of the third sentence by strik23 ing ‘‘section 301(ll)’’ and inserting ‘‘paragraph (ll) or (iii) 

24 of section 301’’. 


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1 (f) NEW SEIZURE AUTHORITIES.—Section 304 of the 

2 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 334) 

3 is amended— 

4 (1) in subsection (a)(1), in the first sentence, 

5 by inserting ‘‘or any article which may not be intro6 duced or delivered for introduction into interstate 

7 commerce under section 301(iii),’’ before ‘‘shall be 

8 liable’’; and 

9 (2) in subsection (d)(1), in the first sentence, 

10 by inserting ‘‘, or any product otherwise introduced 

11 or delivered for introduction into interstate com12 merce in violation of section 301(iii) and condemned 

13 under this section,’’ after ‘‘under this section’’. 

14 (g) CBD AS A FOOD ADDITIVE.— 

15 (1) IN GENERAL.—Not later than 1 year after 

16 the date of enactment of this Act, the Secretary of 

17 Health and Human Services (referred to in this sub18 section as the ‘‘Secretary’’) shall issue draft guid19 ance describing criteria by which the Secretary in20 tends to evaluate the safety of cannabidiol as a food 

21 additive in any food additive petition under section 

22 409 of the Federal Food, Drug, and Cosmetic Act 

23 (21 U.S.C. 348). The Secretary shall publish final 

24 guidance within 180 days of the close of the public 

25 comment period on such draft guidance. 


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1 (2) ADVISORY COMMITTEE.—Before issuing 

2 draft guidance under paragraph (1), the Secretary 

3 shall convene and consult an advisory committee, 

4 which shall include experts qualified in the subject 

5 matter. 

6 SEC. 505. TRANSITION PERIODS. 

7 (a) TRANSITION PERIOD FOR CANNABIS PROD8 UCTS.—With respect to a cannabis product that was mar9 keted in the United States within 30 days of the date of 

10 enactment of this Act pursuant to a State law permitting 

11 the marketing of such product, such product shall not be 

12 considered to be in violation of chapter XI of the Federal 

13 Food, Drug, and Cosmetic Act (as added by section 501) 

14 or section 301 of the Federal Food, Drug, and Cosmetic 

15 Act (21 U.S.C. 331), as amended by this title, as applica16 ble, during the 18-month period following the date of en17 actment of this Act. 

18 (b) SUBMISSION OF APPLICATIONS FOR PREVIOUSLY

19 MARKETED DRUGS CONTAINING CANNABIS.— 

20 (1) TRANSITION PERIOD FOR DRUGS CON21 TAINING CANNABIS.—With respect to a drug con22 taining cannabis that was being marketed in the 

23 United States within 30 days after the date of en24 actment of this Act pursuant to a State law permit25 ting cannabis for medical use, such drug shall not be 


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1 considered to be in violation of chapter V or section 

2 301 of the Federal Food, Drug, and Cosmetic Act 

3 (21 U.S.C. 331; 351 et seq.) during the 3-year pe4 riod following the date of enactment of this Act. 

5 (2) SUBMISSION OF APPLICATIONS.— 

6 (A) IN GENERAL.—As a condition for con7 tinuing to market a drug described in para8 graph (1) during the 3-year period specified in 

9 such paragraph, during the 18-month period 

10 beginning on the effective date of this Act, the 

11 manufacturer shall submit a new drug applica12 tion under section 505(b) of the Federal Food, 

13 Drug, and Cosmetic Act (21 U.S.C. 355(b)) for 

14 such drug. 

15 (B) TRANSITION PERIOD.—Except as pro16 vided in subparagraph (C), with respect to a 

17 drug containing cannabis for which an applica18 tion is submitted as described in subparagraph 

19 (A), the manufacturer of such product may con20 tinue to market such drug in the State de21 scribed in paragraph (1) during the 3-year pe22 riod beginning on the effective date of this Act. 

23 (C) EXCEPTION.—If the Secretary of 

24 Health and Human Services issues an order re25 fusing to approve an application under section 


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1 505(d) of the Federal Food, Drug, and Cos2 metic Act (21 U.S.C. 355(d)) for a drug that 

3 contains cannabis, such drug shall not be eligi4 ble for continued marketing under subpara5 graph (B). 

6 (3) END OF TRANSITION PERIOD.—Beginning 

7 on the date that is 3 years after the date of enact8 ment of this Act the Secretary may take enforce9 ment action, as appropriate, for a drug described in 

10 paragraph (1) (including such a drug that is the 

11 subject of a pending application under section 505 

12 of the Federal Food, Drug, and Cosmetic Act (21 

13 U.S.C. 355)) found to be in violation of chapter V 

14 or section 301 of the Federal Food, Drug, and Cos15 metic Act. 

16 (4) RULE OF CONSTRUCTION.—Nothing in this 

17 subsection shall be construed to prohibit the mar18 keting of a cannabis product otherwise in compliance 

19 with relevant provisions of the Federal Food, Drug, 

20 and Cosmetic Act (21 U.S.C. 301 et seq.). 

21 (c) DEFINITION.—For purposes of this section, the 

22 term ‘‘drug containing cannabis’’ means any drug that 

23 contains any article made or derived from cannabis. 


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1 SEC. 506. AMENDMENT TO THE POISON PREVENTION PACK2 AGING ACT. 

3 Section 2(2)(B) of the Poison Prevention Packaging 

4 Act of 1970 (15 U.S.C. 1471(2)(B)) is amended by strik5 ing ‘‘or cosmetic’’ and inserting ‘‘cosmetic, or cannabis 

6 product,’’. 

7 SEC. 507. FUNDING FOR FDA. 

8 In addition to amounts otherwise available, there is 

9 appropriated, out of any funds in the Treasury not other10 wise appropriated, $425,000,000 for each of fiscal years 

11 2025 through 2029 to carry out this title and the amend12 ments made by this title. 

13 Subtitle B—Federal Cannabis 

14 Administration 

15 SEC. 511. FEDERAL CANNABIS ADMINISTRATION. 

16 (a) IN GENERAL.—The Federal Alcohol Administra17 tion Act (27 U.S.C. 201 et seq.) is amended by adding 

18 at the end the following: 

19 ‘‘TITLE III—CANNABIS 

20 ‘‘SEC. 301. UNLAWFUL BUSINESSES WITHOUT CANNABIS 

21 PERMIT. 

22 ‘‘(a) IMPORT.—It shall be unlawful, except pursuant 

23 to a permit issued under this title by the Secretary— 

24 ‘‘(1) to engage in the business of importing 

25 cannabis into the United States; or 


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1 ‘‘(2) for any person so engaged to sell, offer or 

2 deliver for sale, contract to sell, or ship, in interstate 

3 or foreign commerce, directly or indirectly or 

4 through an affiliate, cannabis so imported. 

5 ‘‘(b) MANUFACTURE AND SALE.—It shall be unlaw6 ful, except pursuant to a permit issued under this title 

7 by the Secretary— 

8 ‘‘(1) to engage in the business of cultivating, 

9 producing, manufacturing, packaging, or 

10 warehousing cannabis; or 

11 ‘‘(2) for any person so engaged to sell, offer or 

12 deliver for sale, contract to sell, or ship, in interstate 

13 or foreign commerce, directly or indirectly or 

14 through an affiliate, cannabis so cultivated, pro15 duced, manufactured, packaged, or warehoused. 

16 ‘‘(c) RESALE.—It shall be unlawful, except pursuant 

17 to a permit issued under this title by the Secretary— 

18 ‘‘(1) to engage in the business of purchasing 

19 cannabis for resale at wholesale; or 

20 ‘‘(2) for any person so engaged to receive or to 

21 sell, offer or deliver for sale, contract to sell, or ship, 

22 in interstate or foreign commerce, directly or indi23 rectly or through an affiliate, cannabis so purchased. 

24 ‘‘(d) TRANSITION RULE.—Subject to section 302(e), 

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1 rate application for a permit under this section within 90 

2 days of the date on which the Secretary has issued any 

3 necessary guidance and forms with respect to such appli4 cations, this section shall not apply to such person during 

5 the period prior to any determination under section 302 

6 as to the entitlement of such person to such permit, pro7 vided that such person is in compliance with— 

8 ‘‘(1) any applicable regulations under this title; 

9 and 

10 ‘‘(2) payment of any taxes imposed under chap11 ter 56 of the Internal Revenue Code of 1986. 

12 ‘‘SEC. 302. PROCEDURE FOR ISSUANCE OF CANNABIS PER13 MITS. 

14 ‘‘(a) ENTITLEMENT TO PERMIT.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall issue a 

16 permit for operations requiring a permit under sec17 tion 301 unless the Secretary finds that— 

18 ‘‘(A) the applicant (or if the applicant is a 

19 corporation, any of its officers, directors, or 

20 principal stockholders) has been convicted of a 

21 disqualifying offense; 

22 ‘‘(B) the operations proposed to be con23 ducted by the applicant are in violation of the 

24 law of the State in which they are to be con25 ducted; or 


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1 ‘‘(C) the applicant is not likely to maintain 

2 such operations in conformity with Federal law. 

3 ‘‘(2) DISQUALIFYING OFFENSES.— 

4 ‘‘(A) IN GENERAL.—For the purposes of 

5 paragraph (1), a disqualifying offense is any 

6 felony violation of any provision of Federal or 

7 State criminal law relating to cannabis or can8 nabis products (including the taxation thereof), 

9 if the conviction occurred after the date of en10 actment of the Cannabis Administration and 

11 Opportunity Act and not later than 3 years be12 fore the date of the application. 

13 ‘‘(B) WAIVER PURSUANT TO FINDING OF

14 MITIGATION OR REHABILITATION AND FITNESS

15 FOR OCCUPATION.—Notwithstanding subpara16 graph (A), an offense shall not be considered a 

17 disqualifying offense if, pursuant to a submis18 sion of waiver request by the applicant to the 

19 Secretary, the Secretary finds (following a re20 view and recommendation with respect to such 

21 waiver request by the Cannabis Products Advi22 sory Committee established under section 602 

23 of the Cannabis Administration and Oppor24 tunity Act) that the applicant has established 

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1 ness to maintain cannabis operations in compli2 ance with State and Federal law by providing— 

3 ‘‘(i) evidence showing that— 

4 ‘‘(I) the applicant has not been 

5 convicted of a crime that occurred 

6 after the date on which the offense 

7 with respect to which the waiver was 

8 requested occurred; and 

9 ‘‘(II) the applicant has complied 

10 with all terms and conditions of pro11 bation or parole; or 

12 ‘‘(ii) any other evidence of mitigation 

13 and present fitness, including— 

14 ‘‘(I) the circumstances relating to 

15 the offense, including mitigating cir16 cumstances or social conditions sur17 rounding the commission of the of18 fense; 

19 ‘‘(II) the age of the applicant 

20 when the applicant committed the of21 fense; 

22 ‘‘(III) the period of time that has 

23 elapsed since the applicant committed 

24 the offense; 


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1 ‘‘(IV) additional evidence of edu2 cational, training, or work activities 

3 that the applicant has participated in, 

4 including during any period of incar5 ceration; 

6 ‘‘(V) letters of reference by per7 sons who have been in contact with 

8 the applicant since the applicant was 

9 released from any correctional institu10 tion; and 

11 ‘‘(VI) completion of, or active 

12 participation in, rehabilitative drug or 

13 alcohol treatment. 

14 ‘‘(b) REFUSAL OF PERMIT; HEARING.—If upon ex15 amination of any application for a permit the Secretary 

16 has reason to believe that the applicant is not entitled to 

17 such permit, the Secretary shall so notify the applicant 

18 and, upon request by the applicant, afford the applicant 

19 due notice and opportunity for hearing on the application. 

20 If the Secretary, after affording such notice and oppor21 tunity for hearing, still finds that the applicant is not enti22 tled to a permit hereunder, the Secretary shall by order 

23 deny the application stating the findings which are the 

24 basis for the order. 

25 ‘‘(c) FORM OF APPLICATION.— 


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1 ‘‘(1) GENERALLY.—The Secretary shall— 

2 ‘‘(A) prescribe the manner and form of ap3 plications for permits under this title (including 

4 the facts to be set forth in the application); 

5 ‘‘(B) prescribe the form of such permits; 

6 and 

7 ‘‘(C) specify in any permit the authority 

8 conferred by the permit and the conditions of 

9 that permit in accordance with this title. 

10 ‘‘(2) SEPARATE TYPES OF APPLICATIONS AND

11 PERMITS.—To the extent deemed necessary by the 

12 Secretary for the efficient administration of this 

13 title, the Secretary may require separate applications 

14 and permits with respect to the various classes of 

15 cannabis, and with respect to the various classes of 

16 persons entitled to permits under this title. 

17 ‘‘(3) DISCLAIMER.—The issuance of a permit 

18 under this title does not deprive the United States 

19 of any remedy for a violation of law. 

20 ‘‘(d) CONDITIONS.— 

21 ‘‘(1) IN GENERAL.—A permit under this title 

22 shall be conditioned upon— 

23 ‘‘(A) compliance with all other Federal 

24 laws relating to production and sale of can25 nabis, as well as compliance with all State laws 


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1 relating to said activities in the State in which 

2 the permit applicant resides and does business; 

3 ‘‘(B) payment to the Secretary of a reason4 able permit fee in an amount determined by the 

5 Secretary to be sufficient over time to offset the 

6 cost of implementing and overseeing all aspects 

7 of cannabis regulation by the Federal Govern8 ment; and 

9 ‘‘(C) compliance with— 

10 ‘‘(i) the labor laws described in para11 graph (1) of subsection (j), as determined 

12 in accordance with paragraph (2) of such 

13 subsection; and 

14 ‘‘(ii) the reporting requirements of 

15 subsection (j)(3). 

16 ‘‘(2) WAIVER OF PERMIT FEE.—Pursuant to 

17 regulations prescribed by the Secretary, the permit 

18 fee described in paragraph (1)(B) shall be waived in 

19 the case of an individual who— 

20 ‘‘(A) has had an income below 250 percent 

21 of the Federal Poverty Level for not fewer than 

22 5 of the 10 years preceding the date on which 

23 the individual submits an application for a per24 mit under this title; and 

25 ‘‘(B) is a first-time applicant. 


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1 ‘‘(e) REVOCATION, SUSPENSION, AND ANNUL2 MENT.— 

3 ‘‘(1) GENERALLY.—After due notice and oppor4 tunity for hearing, the Secretary may order a permit 

5 under this title— 

6 ‘‘(A) revoked or suspended for such period 

7 as the Secretary deems appropriate, if the Sec8 retary finds that the permittee has willfully vio9 lated any of the conditions of the permit, but 

10 for a first violation of the conditions the permit 

11 shall be subject to suspension only; 

12 ‘‘(B) revoked if the Secretary finds that 

13 the permittee has not engaged in the operations 

14 authorized by the permit for a period of more 

15 than 2 years; or 

16 ‘‘(C) annulled if the Secretary finds that 

17 the permit was procured through fraud, or mis18 representation, or concealment of material fact. 

19 ‘‘(2) ORDER TO STATE BASIS FOR ORDER.— 

20 The order shall state the findings which are the 

21 basis for the order. 

22 ‘‘(3) JOINT DEVELOPMENT OF ENFORCEMENT

23 REGULATIONS.—The Secretary, in coordination with 

24 the Secretary of Labor and the National Labor Re25 lations Board, shall, through regulations, establish 


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1 criteria for making determinations under paragraph 

2 (1). 

3 ‘‘(4) JOINT ENFORCEMENT.—The Secretary of 

4 Labor and the National Labor Relations Board shall 

5 provide to the Secretary any assistance in carrying 

6 out this subsection as determined necessary by the 

7 Secretary. 

8 ‘‘(5) CERTAIN VIOLATIONS UNDER THE NA9 TIONAL LABOR RELATIONS ACT DEEMED WILL10 FUL.—A violation of the condition under subsection 

11 (d)(1)(C) with respect to compliance with section 8 

12 of the National Labor Relations Act (29 U.S.C. 

13 158) as described in subsection (j)(1)(C) shall be 

14 deemed willful for purposes of paragraph (1)(A) if 

15 the National Labor Relations Board finds that the 

16 permittee has engaged in— 

17 ‘‘(A) a discharge in violation of subsection 

18 (a) of such section 8; 

19 ‘‘(B) a violation of such section 8 during 

20 the period in which a representation election 

21 under such Act is pending with respect to the 

22 employees of the permittee; or 

23 ‘‘(C) a withdrawal of recognition of the 

24 recognized or certified collective-bargaining rep25 resentative under such Act with respect to the 


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1 employees of the permittee that is in violation 

2 of such section 8. 

3 ‘‘(f) SERVICE OF ORDERS.—Each order of the Sec4 retary with respect to any denial of application, suspen5 sion, revocation, annulment, or other proceedings, shall be 

6 served— 

7 ‘‘(1) in person by any officer or employee of the 

8 Secretary designated by him or any internal revenue 

9 or customs officer authorized by the Secretary for 

10 the purpose; or 

11 ‘‘(2) by mailing the order by registered mail, 

12 addressed to the applicant or respondent at his last 

13 known address in the records of the Secretary. 

14 ‘‘(g) DURATION.— 

15 ‘‘(1) GENERAL RULE.—Except as otherwise 

16 provided in this subsection, a permit issued under 

17 this title shall continue in effect until suspended, re18 voked, or annulled as provided in this title, or volun19 tarily surrendered. 

20 ‘‘(2) EFFECT OF TRANSFER.—If operations 

21 under a permit issued under this title are trans22 ferred, the permit automatically terminates 30 days 

23 after the date of that transfer, unless an application 

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1 ations. If such an application is made, the out2 standing permit shall continue in effect until such 

3 application is finally acted on by the Secretary. 

4 ‘‘(3) DEFINITION OF TRANSFER.—For the pur5 poses of this section, the term ‘transfer’ means any 

6 change of ownership or control, whether voluntary or 

7 by operation of law. 

8 ‘‘(h) JUDICIAL REVIEW.— 

9 ‘‘(1) IN GENERAL.—A permittee or applicant 

10 for a permit under this title may obtain judicial re11 view under chapter 7 of title 5, United States Code, 

12 of the denial of the application of that applicant or, 

13 in the case of a permittee, the denial of an applica14 tion by the transferee of that permittee or the sus15 pension, revocation, or annulment of a permit with 

16 respect to that permittee. 

17 ‘‘(2) LABOR LAW VIOLATIONS.—Notwith18 standing paragraph (1), with respect to a violation 

19 of the condition described in subsection (d)(1)(C), 

20 the findings of fact and conclusions of law by the 

21 Secretary, or, pursuant to subsection (e)(4), the Sec22 retary of Labor or the National Labor Relations 

23 Board, concerning the appropriateness of sus24 pending, revoking, or annulling a permit as provided 


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1 in this title, if supported by substantial evidence on 

2 the whole, shall be conclusive. 

3 ‘‘(i) STATUTE OF LIMITATIONS.— 

4 ‘‘(1) IN GENERAL.—No proceeding for the sus5 pension or revocation of a permit for violation of any 

6 condition thereof relating to compliance with Federal 

7 law shall be instituted by the Secretary more than 

8 18 months after conviction of the violation of Fed9 eral law, or, if no conviction has been had, more 

10 than 3 years after the violation occurred. 

11 ‘‘(2) COMPROMISE.—No permit shall be sus12 pended or revoked for a violation of any such condi13 tion thereof if the alleged violation of Federal law 

14 has been compromised by any officer of the Govern15 ment authorized to compromise such violation. 

16 ‘‘(j) LABOR LAWS.— 

17 ‘‘(1) IN GENERAL.—A labor law described in 

18 this paragraph is any of the following: 

19 ‘‘(A) Any provision under the Fair Labor 

20 Standards Act of 1938 (29 U.S.C. 201 et seq.), 

21 including any regulations promulgated under 

22 such Act. 

23 ‘‘(B) Any provision under the Occupational 

24 Safety and Health Act of 1970 (29 U.S.C. 651 

25 et seq.), including any standard promulgated 


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1 under section 6 of such Act (29 U.S.C. 655) or 

2 any other regulation promulgated under such 

3 Act, or any standard or regulation promulgated 

4 under an applicable State plan approved by the 

5 Secretary of Labor under section 18 of such 

6 Act (29 U.S.C. 667) that is identical or equiva7 lent to a standard promulgated under such sec8 tion 6. 

9 ‘‘(C) Section 8 of the National Labor Rela10 tions Act (29 U.S.C. 158), including any regu11 lations promulgated under such section. 

12 ‘‘(2) FINDINGS OF LABOR LAW VIOLATIONS.— 

13 ‘‘(A) IN GENERAL.—For purposes of sub14 section (d)(1)(C)(i), a permittee shall be consid15 ered in violation of a labor law described in 

16 paragraph (1) if any of the following findings 

17 are made with respect to the permittee: 

18 ‘‘(i) FAIR LABOR STANDARDS ACT OF

19 1938.—With respect to a labor law de20 scribed in paragraph (1)(A)— 

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 Fair Labor 

25 Standards Act of 1938, including any 


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1 regulation promulgated under such 

2 Act; or 

3 ‘‘(II) a finding through a final 

4 order of the Secretary of Labor that 

5 the permittee has violated any provi6 sion of such Act, including such a reg7 ulation. 

8 ‘‘(ii) OCCUPATIONAL SAFETY AND

9 HEALTH ACT OF 1970.—With respect to a 

10 labor law described in paragraph (1)(B)— 

11 ‘‘(I) a finding through an order 

12 or judgment of a Federal or State 

13 court that the permittee has violated 

14 any provision of the Occupational 

15 Safety and Health Act of 1970, in16 cluding any standard promulgated 

17 under section 6 of such Act or any 

18 other regulation promulgated under 

19 such Act, or any standard or regula20 tion promulgated under an applicable 

21 State plan approved by the Secretary 

22 of Labor under section 18 of such Act 

23 (29 U.S.C. 667) that is identical or 

24 equivalent to a standard promulgated 

25 under such section 6; or 


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1 ‘‘(II) a finding through a final 

2 order issued by the Occupational 

3 Safety and Health Review Commis4 sion, or an equivalent final decision of 

5 any State agency or administrative 

6 body, that the permittee has com7 mitted a violation described in sub8 clause (I). 

9 ‘‘(iii) NATIONAL LABOR RELATIONS

10 ACT.—With respect to a labor law de11 scribed in paragraph (1)(C), a finding by 

12 the National Labor Relations Board that 

13 the permittee has violated section 8 of the 

14 National Labor Relations Act (29 U.S.C. 

15 158), including a regulation promulgated 

16 under such section, by committing an un17 fair labor practice under such section. 

18 ‘‘(B) EXCEPTION.—Notwithstanding sub19 paragraph (A), a permittee shall not be consid20 ered in violation of a labor law described in 

21 paragraph (1) if a finding described in subpara22 graph (A) with respect to the permittee is 

23 through an order or judgment that has been re24 versed, vacated, or rescinded. 


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1 ‘‘(3) REPORTING REQUIREMENTS.—Not later 

2 than 30 days after a finding described in paragraph 

3 (2) has been made with respect to a permittee, the 

4 permittee shall notify the Secretary of such finding 

5 in such form and manner as the Secretary, in co6 ordination with the Secretary of Labor and the Na7 tional Labor Relations Board, shall prescribe. 

8 ‘‘SEC. 303. DELIVERY OF HEMP INADVERTENTLY EXCEED9 ING PERMISSIBLE CONCENTRATION OF 

10 DELTA-9 TETRAHYRDROCANNABINOL. 

11 ‘‘(a) IN GENERAL.—The Secretary, in coordination 

12 with the Secretary of Agriculture and the Secretary of 

13 Health and Human Services, shall issue regulations to es14 tablish a process for the lawful delivery of hemp described 

15 in subsection (b) to a cannabis enterprise holding a permit 

16 issued under this title and authorized pursuant to section 

17 5911 of the Internal Revenue Code of 1986. 

18 ‘‘(b) HEMP DESCRIBED.—Hemp referred to in sub19 section (a) is Cannabis sativa L. inadvertently produced 

20 with a total tetrahydrocannabinol equivalent concentration 

21 of more than the allowable tetrahydrocannabinol equiva22 lent amount as described in paragraph (1)(C) of section 

23 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 

24 1639o)— 


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1 ‘‘(1) before September 30, 2021, by an institu2 tion of higher education or State department of agri3 culture that grows or cultivates industrial hemp 

4 under section 7606 of the Agricultural Act of 2014 

5 (7 U.S.C. 5940); or 

6 ‘‘(2) by a producer of hemp under subtitle G of 

7 the Agricultural Marketing Act of 1946 (7 U.S.C. 

8 1639o et seq.). 

9 ‘‘SEC. 304. UNFAIR COMPETITION AND UNLAWFUL PRAC10 TICES. 

11 ‘‘(a) IN GENERAL.—It shall be unlawful for any per12 son engaged in the business of importing cannabis into 

13 the United States, or cultivating, producing, manufac14 turing, packaging, or warehousing cannabis, or purchasing 

15 cannabis for resale at wholesale, directly or indirectly or 

16 through an affiliate, to do any of the following: 

17 ‘‘(1) EXCLUSIVE OUTLET.—To require, by 

18 agreement or otherwise, that any retailer engaged in 

19 the sale of cannabis products, purchase any such 

20 products from such person to the exclusion in whole 

21 or in part of cannabis sold or offered for sale by 

22 other persons in interstate or foreign commerce, if 

23 such requirement is made in the course of interstate 

24 or foreign commerce, or if such person engages in 

25 such practice to such an extent as substantially to 


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1 restrain or prevent transactions in interstate or for2 eign commerce in any such products, or if the direct 

3 effect of such requirement is to prevent, deter, 

4 hinder, or restrict other persons from selling or of5 fering for sale any such products to such retailer in 

6 interstate or foreign commerce. 

7 ‘‘(2) TIED HOUSE.—To induce through any of 

8 the following means, any retailer, engaged in the 

9 sale of cannabis products to purchase any such prod10 ucts from such person to the exclusion in whole or 

11 in part of cannabis sold or offered for sale by other 

12 persons in interstate or foreign commerce, if such 

13 inducement is made in the course of interstate or 

14 foreign commerce, or if such person engages in the 

15 practice of using such means, or any of them, to 

16 such an extent as substantially to restrain or prevent 

17 transactions in interstate or foreign commerce in 

18 any such products, or if the direct effect of such in19 ducement is to prevent, deter, hinder, or restrict 

20 other persons from selling or offering for sale any 

21 such products to such retailer in interstate or for22 eign commerce: 

23 ‘‘(A) Acquiring or holding (after the expi24 ration of any existing license) any interest in 


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1 any license with respect to the premises of the 

2 retailer. 

3 ‘‘(B) Acquiring any interest in real or per4 sonal property owned, occupied, or used by the 

5 retailer in the conduct of his business. 

6 ‘‘(C) Furnishing, giving, renting, lending, 

7 or selling to the retailer, any equipment, fix8 tures, signs, supplies, money, services, or other 

9 thing of value, subject to such exceptions as the 

10 Secretary shall by regulation prescribe, having 

11 due regard for public health, the quantity and 

12 value of articles involved, established trade cus13 toms not contrary to the public interest and the 

14 purposes of this subsection. 

15 ‘‘(D) Paying or crediting the retailer for 

16 any advertising, display, or distribution service. 

17 ‘‘(E) Guaranteeing any loan or the repay18 ment of any financial obligation of the retailer. 

19 ‘‘(F) Extending to the retailer credit for a 

20 period in excess of the credit period usual and 

21 customary to the industry for the particular 

22 class of transactions, as ascertained by the Sec23 retary of the Treasury and prescribed by regu24 lations by him. 


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1 ‘‘(G) Requiring the retailer to take and 

2 dispose of a certain quota of any of such prod3 ucts. 

4 ‘‘(3) COMMERCIAL BRIBERY.—To induce 

5 through any of the following means, any trade buyer 

6 engaged in the sale of cannabis products, to pur7 chase any such products from such person to the ex8 clusion in whole or in part of cannabis products sold 

9 or offered for sale by other persons in interstate or 

10 foreign commerce, if such inducement is made in the 

11 course of interstate or foreign commerce, or if such 

12 person engages in the practice of using such means, 

13 or any of them, to such an extent as substantially 

14 to restrain or prevent transactions in interstate or 

15 foreign commerce in any such products, or if the di16 rect effect of such inducement is to prevent, deter, 

17 hinder, or restrict other persons from selling or of18 fering for sale any such products to such trade 

19 buyer in interstate or foreign commerce: 

20 ‘‘(A) Commercial bribery. 

21 ‘‘(B) Offering or giving any bonus, pre22 mium, or compensation to any officer, or em23 ployee, or representative of the trade buyer. 

24 ‘‘(4) CONSIGNMENT SALES.—To sell, offer for 

25 sale, or contract to sell to any trade buyer engaged 


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1 in the sale of cannabis products, or for any such 

2 trade buyer to purchase, offer to purchase, or con3 tract to purchase, any such products on consignment 

4 or under conditional sale or with the privilege of re5 turn or on any basis otherwise than a bona fide sale, 

6 or where any part of such transaction involves, di7 rectly or indirectly, the acquisition by such person 

8 from the trade buyer or his agreement to acquire 

9 from the trade buyer other cannabis products, if 

10 such sale, purchase, offer, or contract is made in the 

11 course of interstate or foreign commerce, or if such 

12 person or trade buyer engages in such practice to 

13 such an extent as substantially to restrain or prevent 

14 transactions in interstate or foreign commerce in 

15 any such products or if the direct effect of such sale, 

16 purchase, offer, or contract is to prevent, deter, 

17 hinder, or restrict other persons from selling or of18 fering for sale any such products to such trade 

19 buyer in interstate or foreign commerce. 

20 ‘‘(5) LABELING.—To sell or ship or deliver for 

21 sale or shipment, or otherwise introduce in interstate 

22 or foreign commerce, or to receive therein, or to re23 move from customs custody for consumption, any 

24 cannabis product in packages, unless such products 

25 are packaged, and labeled in conformity with such 


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•S 4226 IS

1 regulations, to be prescribed by the Secretary, with 

2 respect to packaging, marking, branding, and label3 ing and size of container— 

4 ‘‘(A) as will prohibit deception of the con5 sumer with respect to such products or the 

6 quantity thereof and as will prohibit, irrespec7 tive of falsity, such statements relating to man8 ufacturing processes, analyses, guarantees, and 

9 scientific or irrelevant matters as the Secretary 

10 finds to be likely to mislead the consumer; 

11 ‘‘(B) as will provide the consumer with in12 formation described in section 1103 of the Fed13 eral Food, Drug, and Cosmetic Act; 

14 ‘‘(C) as will require compliance with sec15 tion 112(b) of the Cannabis Administration and 

16 Opportunity Act; 

17 ‘‘(D) as will prohibit statements on the 

18 label that are disparaging of a competitor’s 

19 products or are false, misleading, obscene, or 

20 indecent; and 

21 ‘‘(E) as will prevent deception of the con22 sumer by use of a trade or brand name that is 

23 the name of any living individual of public 

24 prominence, or existing private or public organi25 zation, or is a name that is in simulation or is 


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1 an abbreviation thereof, and as will prevent the 

2 use of a graphic, pictorial, or emblematic rep3 resentation of any such individual or organiza4 tion, if the use of such name or representation 

5 is likely falsely to lead the consumer to believe 

6 that the product has been indorsed, made, or 

7 used by, or produced for, or under the super8 vision of, or in accordance with the specifica9 tions of, such individual or organization. 

10 ‘‘(6) ADVERTISING.—To publish or disseminate 

11 or cause to be published or disseminated by radio 

12 broadcast, or in any newspaper, periodical or other 

13 publication or by any sign or outdoor advertisement 

14 or any other printed or graphic matter, any adver15 tisement of cannabis, if such advertisement is in, or 

16 is calculated to induce sales in, interstate or foreign 

17 commerce, or is disseminated by mail, unless such 

18 advertisement is in conformity with such regulations, 

19 to be prescribed by the Secretary, as will— 

20 ‘‘(A) prevent deception of the consumer 

21 with respect to the products advertised and as 

22 will prohibit, irrespective of falsity, such state23 ments relating to manufacturing processes, 

24 analyses, guaranties, and scientific or irrelevant 


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1 matters as the Secretary finds to be likely to 

2 mislead the consumer; 

3 ‘‘(B) provide the consumer with adequate 

4 information as to the identity and quality of the 

5 products advertised, the characteristics thereof, 

6 and the person responsible for the advertise7 ment; 

8 ‘‘(C) prohibit statements that are dispar9 aging of a competitor’s products or are false, 

10 misleading, obscene, or indecent; and 

11 ‘‘(D) prevent statements inconsistent with 

12 any statement on the labeling of the products 

13 advertised. 

14 ‘‘(b) REMOVAL OR DESTRUCTION OF LABEL.—It 

15 shall be unlawful for any person to alter, mutilate, destroy, 

16 obliterate, or remove any mark, brand, or label upon can17 nabis products held for sale in interstate or foreign com18 merce or after shipment therein, except as authorized by 

19 Federal law or except pursuant to regulations of the Sec20 retary authorizing relabeling for purposes of compliance 

21 with the requirements of this subsection or of State law. 

22 ‘‘(c) EXCEPTIONS.— 

23 ‘‘(1) CONSIGNMENT SALES.—Paragraph (4) of 

24 subsection (a) shall not apply to transactions involv25 ing solely the bona fide return of merchandise for 


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1 ordinary and usual commercial reasons arising after 

2 the merchandise has been sold. 

3 ‘‘(2) LABELING.—Paragraph (5) of such sub4 section shall not apply to the use of the name of any 

5 person engaged in business as a manufacturer of 

6 cannabis products, nor to the use by any person of 

7 a trade or brand name used by him or his prede8 cessor in interest prior to the date of enactment of 

9 the Cannabis Administration and Opportunity Act. 

10 ‘‘(3) ADVERTISING.—Paragraph (6) of such 

11 subsection shall not apply to the publisher of any 

12 newspaper, periodical, or other publication, or radio 

13 broadcaster, unless such publisher or radio broad14 caster is engaged in the business of importing can15 nabis into the United States, or cultivating, pro16 ducing, manufacturing, packaging, or warehousing 

17 cannabis, or purchasing cannabis for resale at whole18 sale, directly or indirectly or through an affiliate. 

19 ‘‘(4) STATE LAW.—With respect to subsection 

20 (a)(2), subparagraphs (A), (B), (C), (E), and (F) of 

21 such subsection shall apply to transactions between 

22 a retailer or trade buyer in any State and a pro23 ducer, importer, or wholesaler of cannabis products 

24 outside such State only to the extent that the law 

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1 spect to similar transactions between a retailer or 

2 trade buyer in such State and a producer, importer, 

3 or wholesaler of cannabis products in such State, as 

4 the case may be. 

5 ‘‘(5) PROPRIETARY INTEREST.—Pursuant to 

6 regulations or other guidance promulgated by the 

7 Secretary, with respect to subparagraphs (A) and 

8 (B) of subsection (a)(2), rules similar to the rules of 

9 sections 6.27 and 6.33 of title 27, Code of Federal 

10 Regulations (as in effect on the date of enactment 

11 of this title), shall apply. 

12 ‘‘SEC. 305. REMEDIES FOR VIOLATIONS. 

13 ‘‘(a) CRIMINAL FINE.— 

14 ‘‘(1) GENERALLY.—Whoever violates section 

15 301 shall be fined not more than $1,000. 

16 ‘‘(2) SETTLEMENT IN COMPROMISE.—The Sec17 retary may decide not to refer a violation of such 

18 section to the Attorney General for prosecution but 

19 instead to collect a payment from the violator of no 

20 more than $500 for that violation. 

21 ‘‘(b) CIVIL ACTION FOR RELIEF.—The Attorney 

22 General may, in a civil action, obtain appropriate relief 

23 to prevent and restrain a violation of this title. 

24 ‘‘SEC. 306. DEFINITIONS. 

25 ‘‘In this title— 


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1 ‘‘(1) the term ‘cannabis’ has the meaning given 

2 such term in section 3 of the Cannabis Administra3 tion and Opportunity Act; 

4 ‘‘(2) the term ‘Secretary’ means the Secretary 

5 of the Treasury or the Secretary’s delegate; and 

6 ‘‘(3) the term ‘State’ includes the District of 

7 Columbia, Puerto Rico, and any territory or posses8 sion of the United States.’’. 

9 (b) APPROPRIATIONS.—In addition to amounts other10 wise available, there is appropriated, out of any funds in 

11 the Treasury not otherwise appropriated, for fiscal year 

12 2025— 

13 (1) $15,000,000 to the Secretary of Labor for 

14 carrying out the activities of the Secretary of Labor 

15 under section 302 of the Federal Alcohol Adminis16 tration Act, to remain available until September 30, 

17 2029; and 

18 (2) $10,000,000 to the National Labor Rela19 tions Board for carrying out the activities of the Na20 tional Labor Relations Board under such section, to 

21 remain available until September 30, 2029. 


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1 SEC. 512. INCREASED FUNDING FOR THE ALCOHOL, TO2 BACCO, AND CANNABIS TAX AND TRADE BU3 REAU. 

4 In addition to any other amounts otherwise available 

5 to the Alcohol, Tobacco, and Cannabis Tax and Trade Bu6 reau, there is appropriated, out of any funds in the Treas7 ury not otherwise appropriated, $100,000,000 for each of 

8 the fiscal years 2025 through 2029 to carry out— 

9 (1) sections 102 and 112 of this Act, 

10 (2) chapter 56 of the Internal Revenue Code of 

11 1986 (as added by section 401 of this Act), 

12 (3) title III of the Federal Alcohol Administra13 tion Act (as added by section 511 of this Act), and 

14 (4) section 1111 of the Homeland Security Act 

15 of 2002 (6 U.S.C. 531). 

16 TITLE VI—WORKPLACE HEALTH 

17 AND SAFETY PROVISIONS 

18 SEC. 601. DEFINITIONS. 

19 In this title: 

20 (1) CANNABIS INDUSTRY.—The term ‘‘cannabis 

21 industry’’ means any operation described in section 

22 301 of the Federal Alcohol Administration Act, as 

23 added by section 511. 

24 (2) EMPLOYEE; EMPLOYER.—The terms ‘‘em25 ployee’’ and ‘‘employer’’ have the meanings given 


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1 such terms in section 3 of the Occupational Safety 

2 and Health Act of 1970 (29 U.S.C. 652). 

3 (3) EMPLOYER IN THE CANNABIS INDUSTRY.— 

4 The term ‘‘employer in the cannabis industry’’ 

5 means an employer engaged in any operation requir6 ing a permit under section 301 of the Federal Alco7 hol Administration Act, as added by section 511. 

8 (4) PERSON.—The term ‘‘person’’ has the 

9 meaning given such term in section 3 of the Occupa10 tional Safety and Health Act of 1970 (29 U.S.C. 

11 652). 

12 (5) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Labor. 

14 (6) WORKER IN THE CANNABIS INDUSTRY.— 

15 The term ‘‘worker in the cannabis industry’’ means 

16 any individual performing work for remuneration in 

17 the cannabis industry. 

18 SEC. 602. FINDING REGARDING EMPLOYERS IN THE CAN19 NABIS INDUSTRY. 

20 Congress finds that employers in the cannabis indus21 try are required to comply with occupational safety and 

22 health standards issued under section 6 of the Occupa23 tional Safety and Health Act of 1970 (29 U.S.C. 655) 

24 and other regulations issued under such Act. 


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1 SEC. 603. CANNABIS AS A TARGETED TOPIC FOR SUSAN 

2 HARWOOD TRAINING GRANT PROGRAM. 

3 The Secretary shall, in awarding Susan Harwood 

4 training grants under the Occupational Safety and Health 

5 Act of 1970 (29 U.S.C. 651 et seq.) for the 2 fiscal years 

6 following the date of enactment of this Act, designate can7 nabis as a targeted topic for such grants. 

8 SEC. 604. GUIDANCE ON RECOMMENDED PRACTICES. 

9 (a) IN GENERAL.—Not later than 60 days after the 

10 date of enactment of this Act, the Assistant Secretary of 

11 Labor for Occupational Safety and Health and the Direc12 tor of the National Institute for Occupational Safety and 

13 Health of the Department of Health and Human Services 

14 shall jointly issue guidance on recommended practices to 

15 protect workers in the cannabis industry. 

16 (b) CONTENTS.—The guidance required under this 

17 section shall— 

18 (1) address the hazards workers in the cannabis 

19 industry face throughout the life cycle of cannabis, 

20 including from cultivation to sale and resale; 

21 (2) provide methods to protect cannabis work22 ers; and 

23 (3) indicate specific occupational safety and 

24 health standards promulgated under section 6 of the 

25 Occupational Safety and Health Act of 1970 (29 

26 U.S.C. 655), and any other requirements through 


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1 regulations issued under such Act, that apply to the 

2 cannabis industry, including an indication of any 

3 training requirement that employers in the cannabis 

4 industry are subject to under any occupational safe5 ty and health standard promulgated under such sec6 tion 6 or under any other regulations issued under 

7 such Act. 

8 SEC. 605. WORKPLACE IMPACT OF CANNABIS LEGALIZA9 TION. 

10 (a) STUDY.— 

11 (1) IN GENERAL.—Not later than 1 year after 

12 the date of enactment of this Act, the Director of 

13 the National Institute for Occupational Safety and 

14 Health shall conduct research on the impact of the 

15 legalization of recreational cannabis by States on the 

16 workplace, which may include— 

17 (A) barriers for the Director and extra18 mural partners in conducting occupational safe19 ty and health research with respect to cannabis, 

20 including to further identify potential hazards, 

21 characterize exposures, and evaluate associa22 tions between exposures and adverse health ef23 fects; 

24 (B) occupational health and safety training 

25 for workers in the cannabis industry; 


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1 (C) the controls and actions taken by em2 ployers in the cannabis industry to protect 

3 workers and the effectiveness of such controls 

4 and actions; 

5 (D) efficacy of cannabis for treating occu6 pational related injuries or illnesses; and 

7 (E) other topics as determined relevant by 

8 the Director. 

9 (2) COLLABORATION.—In conducting the re10 search under paragraph (1), the Director of the Na11 tional Institute for Occupational Safety and Health 

12 may collaborate with the Occupational Safety and 

13 Health Administration, other relevant Federal de14 partments and agencies, and relevant public and pri15 vate stakeholders. 

16 (3) APPROPRIATIONS.—In addition to amounts 

17 otherwise available, there is appropriated, out of any 

18 funds in the Treasury not otherwise appropriated, 

19 $2,000,000 for each of fiscal years 2025 through 

20 2027 to carry out paragraph (1). 

21 (b) BEST PRACTICES.—Not later than 2 years after 

22 the date of enactment of this Act, the Director of the Na23 tional Institute for Occupational Safety and Health shall 

24 develop a set of recommendations outlining policies, best 

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1 ployers that are planning to transition or update work2 place policies related to the use of recreational cannabis. 

3 SEC. 606. GRANTS FOR COMMUNITY-BASED EDUCATION, 

4 OUTREACH, AND ENFORCEMENT WITH RE5 SPECT TO THE RIGHTS OF WORKERS IN THE 

6 CANNABIS INDUSTRY. 

7 (a) DEFINITION OF ELIGIBLE ENTITY.—In this sec8 tion, the term ‘‘eligible entity’’ means— 

9 (1) a public or private nonprofit organization 

10 with experience educating workers of their rights; or 

11 (2) a partnership of organizations described in 

12 paragraph (1). 

13 (b) PROGRAM AUTHORIZED.—The Secretary shall 

14 award grants to eligible entities, on a competitive basis, 

15 to enable the eligible entities to carry out— 

16 (1) one or more activities to— 

17 (A) educate workers in the cannabis indus18 try of their rights under Federal, State, and 

19 local civil rights, labor, and employment laws, 

20 with a focus on providing such education to 

21 such workers who are low-wage workers; 

22 (B) educate persons hiring workers in the 

23 cannabis industry regarding their obligations 

24 under such laws; or 


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1 (C) connect and refer workers in the can2 nabis industry to additional services, as appro3 priate and available, to assist them in pursuing 

4 their rights under such laws; or 

5 (2) any other activity the Secretary may reason6 ably prescribe for the purposes of supporting work7 ers in the cannabis industry. 

8 (c) APPLICATIONS.— 

9 (1) IN GENERAL.—An eligible entity desiring a 

10 grant under this section shall submit an application 

11 to the Secretary at such time, in such manner, and 

12 containing such information as the Secretary may 

13 require. 

14 (2) PARTNERSHIP APPLICATIONS.—In the case 

15 of an eligible entity that is a partnership, the eligible 

16 entity may designate, in the application, a single or17 ganization in the partnership as the lead entity for 

18 purposes of receiving and disbursing funds. 

19 (3) CONTENTS.—An application described in 

20 paragraph (1) shall include— 

21 (A) information on the training and edu22 cation that will be provided through the grant 

23 to workers in the cannabis industry and persons 

24 hiring workers in the cannabis industry; 


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1 (B) information on any geographic area 

2 targeted by the activities supported through the 

3 grant; and 

4 (C) the method by which the eligible entity 

5 will measure the results of the activities sup6 ported through the grant and a method by 

7 which the eligible entity will assess the demo8 graphics of the workers served by such activi9 ties. 

10 (d) DURATION OF GRANTS.—Each grant awarded 

11 under this section shall be for a period of not more than 

12 3 years. 

13 (e) AMOUNT OF GRANTS.—Each grant awarded 

14 under this section shall be in an amount not to exceed 

15 $300,000. 

16 (f) REPORTING REQUIREMENTS.—Each eligible enti17 ty receiving a grant under this section shall, as determined 

18 by the Secretary, report to the Secretary the demographics 

19 of the workers served by the grant and the results of the 

20 activities supported by the grant as such demographics 

21 and results are measured by the methods described in the 

22 application submitted by the entity under subsection 

23 (c)(3)(C). 

24 (g) APPROPRIATIONS.—In addition to amounts other25 wise available, there is appropriated, out of any funds in 


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1 the Treasury not otherwise appropriated, $15,000,000 for 

2 each of fiscal years 2025 through 2029 to carry out this 

3 section. 

4 TITLE VII—BANKING, HOUSING, 

5 AND COMMUNITY DEVELOP6 MENT 

7 SEC. 701. PURPOSES; SENSE OF CONGRESS. 

8 (a) PURPOSES.—The purposes of this title are— 

9 (1) to reinvest in low- or moderate-income areas 

10 and communities most affected by the war on drugs; 

11 and 

12 (2) encourage financial institutions to provide 

13 financial services to small or minority-owned busi14 nesses in the communities described in paragraph 

15 (1). 

16 (b) SENSE OF CONGRESS.—It is the sense of Con17 gress that each appropriate Federal financial supervisory 

18 agency should use its authority pursuant to section 804 

19 of the Community Reinvestment Act of 1977 (12 U.S.C. 

20 2901) when examining financial institutions to encourage 

21 the institutions to help meet the credit needs of the local 

22 communities in which they are chartered, consistent with 

23 the safe and sound operation of such institutions, includ24 ing those communities that are most affected by the war 

25 on drugs. 


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1 SEC. 702. REQUIREMENTS FOR FILING SUSPICIOUS ACTIV2 ITY REPORTS. 

3 Section 5318(g) of title 31, United States Code, is 

4 amended— 

5 (1) by redesignating paragraph (11) as para6 graph (12); and 

7 (2) by inserting after paragraph (10) the fol8 lowing: 

9 ‘‘(11) REQUIREMENTS FOR CANNABIS-RELATED

10 LEGITIMATE BUSINESSES.— 

11 ‘‘(A) DEFINITIONS.—In this paragraph: 

12 ‘‘(i) CANNABIS.—The term ‘cannabis’ 

13 has the meaning given the term in section 

14 3 of the Cannabis Administration and Op15 portunity Act. 

16 ‘‘(ii) CANNABIS-RELATED LEGITIMATE

17 BUSINESS; CANNABIS-RELATED SERVICE

18 PROVIDER.—The terms ‘cannabis-related 

19 legitimate business’ and ‘cannabis-related 

20 service provider’ have the meanings given 

21 the terms in section 3 of the Small Busi22 ness Act (15 U.S.C. 632). 

23 ‘‘(iii) FINANCIAL SERVICE.—The term 

24 ‘financial service’— 

25 ‘‘(I) means— 


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1 ‘‘(aa) a financial product or 

2 service, as defined in section 

3 1002 of the Consumer Financial 

4 Protection Act of 2010 (12 

5 U.S.C. 5481), regardless of 

6 whether the customer receiving 

7 the product or service is a con8 sumer or commercial entity; and 

9 ‘‘(bb) a financial product or 

10 service, or any combination of 

11 products and services, permitted 

12 to be provided by— 

13 ‘‘(AA) a national bank 

14 or a financial subsidiary 

15 pursuant to the authority 

16 provided under the para17 graph designated as the 

18 ‘Seventh’ of section 5136 of 

19 the Revised Statutes (12 

20 U.S.C. 24) or section 5136A 

21 of the Revised Statutes (12 

22 U.S.C. 24a); or 

23 ‘‘(BB) a Federal credit 

24 union, pursuant to the au25 thority provided under the 


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1 Federal Credit Union Act 

2 (12 U.S.C. 1751 et seq.); 

3 and 

4 ‘‘(II) includes— 

5 ‘‘(aa) the business of insur6 ance; 

7 ‘‘(bb) whether performed di8 rectly or indirectly, the author9 izing, processing, clearing, set10 tling, billing, transferring for de11 posit, transmitting, delivering, in12 structing to be delivered, recon13 ciling, collecting, or otherwise ef14 fectuating or facilitating of pay15 ments or funds, if such payments 

16 or funds are made or transferred 

17 by any means, including by the 

18 use of credit cards, debit cards, 

19 other payment cards, or other ac20 cess devices, accounts, original or 

21 substitute checks, or electronic 

22 funds transfers; 

23 ‘‘(cc) acting as a money 

24 transmitting business that di25 rectly or indirectly makes use of 


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1 a depository institution in con2 nection with effectuating or fa3 cilitating a payment for a can4 nabis-related legitimate business 

5 or cannabis-related service pro6 vider in compliance with section 

7 5330 of title 31, United States 

8 Code, and any applicable State 

9 law; and 

10 ‘‘(dd) acting as an armored 

11 car service for processing and de12 positing with a depository institu13 tion or a Federal reserve bank 

14 with respect to any monetary in15 struments, as defined in section 

16 1956(c) of title 18, United States 

17 Code. 

18 ‘‘(B) REPORT.—With respect to a financial 

19 institution or any director, officer, employee, or 

20 agent of a financial institution that reports a 

21 suspicious transaction pursuant to this sub22 section, if the reason for the report relates to 

23 a cannabis-related legitimate business or can24 nabis-related service provider, the report shall 

25 comply with appropriate guidance issued by the 


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1 Financial Crimes Enforcement Network. Not 

2 later than the end of the 180-day period begin3 ning on the date of enactment of this para4 graph, the Secretary shall update the February 

5 14, 2014, guidance titled ‘BSA Expectations 

6 Regarding Marijuana-Related Businesses’ 

7 (FIN–2014–G001) or issue new regulations to 

8 ensure that the guidance— 

9 ‘‘(i) is consistent with the purpose and 

10 intent of the Cannabis Administration and 

11 Opportunity Act; 

12 ‘‘(ii) addresses the deposit and move13 ment of cash held by cannabis-legitimate 

14 business or cannabis-related service pro15 vider as of the date of enactment of this 

16 paragraph; and 

17 ‘‘(iii) does not significantly inhibit the 

18 provision of financial services to a can19 nabis-related legitimate business or can20 nabis-related service provider in the United 

21 States. 

22 ‘‘(C) PURPOSE.—Any guidance or regula23 tion required under this section shall ensure 

24 that a financial institution and any director, 

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1 tion continues to report suspicious activities re2 lated to cannabis-related legitimate businesses 

3 and preserve the ability of the Financial Crimes 

4 Enforcement Network and law enforcement to 

5 prevent and combat illicit activity. The Finan6 cial Crimes Enforcement Network shall promul7 gate regulations or issue guidance as necessary 

8 on financial institutions that provide financial 

9 services to cannabis-related legitimate busi10 nesses, cannabis-related service providers, or 

11 employees, owners, or operators, regarding obli12 gations related to anti-money laundering and 

13 under this subchapter, including addressing the 

14 filing of suspicious activity reports consistent 

15 with this section, customer due diligence re16 quirements, indirect relationships with can17 nabis-related legitimate businesses, and 

18 verification and documentation requirements for 

19 financial institutions intending to handle funds 

20 from cannabis-related legitimate businesses to 

21 ensure such funds are clearly linked with law, 

22 other lawful activity, and regulations. The Sec23 retary shall ensure that such regulations are 

24 consistent with the purpose and intent of the 

25 Cannabis Administration and Opportunity Act 


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1 while ensuring the Financial Crimes Enforce2 ment Network has sufficient resources to pre3 vent and combat illicit activity.’’. 

4 SEC. 703. GUIDANCE AND EXAMINATION PROCEDURES. 

5 Not later than 180 days after the date of enactment 

6 of this Act and consistent with the updated Financial 

7 Crimes Enforcement Network guidance described in para8 graph (11)(B) of section 5318(g) of title 31, United States 

9 Code, as added by section 702 of this title, the Federal 

10 Financial Institutions Examination Council, in consulta11 tion with the Financial Crimes Enforcement Network, 

12 shall develop uniform guidance and examination proce13 dures for depository institutions that provide financial 

14 services to cannabis-related legitimate businesses and can15 nabis-related service providers. 

16 SEC. 704. INVESTMENT IN COMMUNITIES. 

17 (a) CDFI SUPPORT.—In addition to funds otherwise 

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

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

20 each of fiscal years 2025 through 2029 to the Community 

21 Development Financial Institutions Fund established 

22 under section 104 of the Community Development Bank23 ing and Financial Institutions Act of 1994 (12 U.S.C. 

24 4703) to provide grants to expand lending and investment 


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1 in low- or moderate-income areas, including those most af2 fected by the war on drugs. 

3 (b) MDI SUPPORT.—In addition to funds otherwise 

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

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

6 each of fiscal years 2025 through 2029 to the Emergency 

7 Capital Investment Fund established under section 

8 104A(b) of the Community Development Banking and Fi9 nancial Institutions Act of 1994 (12 U.S.C. 4703a(b)) to 

10 support the efforts of low- and moderate-income commu11 nity financial institutions to, among other things, provide 

12 loans, grants, and forbearance for small businesses, mi13 nority-owned businesses, and consumers, especially in low14 income and underserved communities, including those 

15 most affected by the war on drugs. 

16 (c) GRANTS TO ADDRESS HOUSING AND COMMUNITY

17 DEVELOPMENT NEEDS OF INDIVIDUALS AND COMMU18 NITIES ADVERSELY IMPACTED BY THE WAR ON

19 DRUGS.— 

20 (1) DEFINITIONS.—In this subsection: 

21 (A) ELIGIBLE ACTIVITY.—The term ‘‘eligi22 ble activity’’— 

23 (i) means any eligible activity— 

24 (I) described in title I of the 

25 Housing and Community Development 


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1 Act of 1974 (42 U.S.C. 5301 et seq.), 

2 the HOME Investment Partnerships 

3 Act (42 U.S.C. 12721 et seq.), or sec4 tion 415 of the McKinney-Vento 

5 Homeless Assistance Act (42 U.S.C. 

6 11374); and 

7 (II) that addresses the needs of 

8 individuals and census tracts in the 

9 provisions described in subclause (I); 

10 and 

11 (ii) does not include administrative ex12 penses that exceed 15 percent of the 

13 amount of a grant made under this sub14 section. 

15 (B) ELIGIBLE GRANTEE.—The term ‘‘eligi16 ble grantee’’ includes any State, unit of general 

17 local government, or Indian tribe eligible to re18 ceive a grant under title I of the Housing and 

19 Community Development Act of 1974 (42 

20 U.S.C. 5301 et seq.). 

21 (C) INDIVIDUAL ADVERSELY IMPACTED BY

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

23 adversely impacted by the War on Drugs’’ has 

24 the meaning given the term in section 3062 as 

25 defined in section 3062 of the Omnibus Crime 


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1 Control and Safe Streets Act of 1968, as added 

2 by section 301(a)(2) of this Act. 

3 (D) STATE; UNIT OF GENERAL LOCAL

4 GOVERNMENT; INDIAN TRIBE.—The terms 

5 ‘‘State’’, ‘‘unit of general local government’’, 

6 and ‘‘Indian tribe’’ have the meanings given the 

7 terms in section 102 of the Housing and Com8 munity Development Act of 1974 (42 U.S.C. 

9 5302). 

10 (2) GRANTS.—In addition to funds otherwise 

11 available, there is appropriated out of any money in 

12 the Treasury not otherwise appropriated, 

13 $300,000,000 for each of fiscal years 2025 through 

14 2029 to the Secretary of Housing and Urban Devel15 opment for grants to eligible grantees for eligible ac16 tivities to address the housing and community devel17 opment needs of— 

18 (A) individuals adversely impacted by the 

19 War on Drugs; and 

20 (B) housing and community development 

21 needs of census tracts where a disproportionate 

22 share of residents are individuals described in 

23 subparagraph (A), as determined by the Sec24 retary. 


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1 (3) AWARD CRITERIA.—In awarding grants 

2 under this subsection, the Secretary of Housing and 

3 Urban Development shall establish criteria for 

4 awards as may be necessary to demonstrate that the 

5 eligible grantee has the need, capacity, and commit6 ment to carry out a grant under this subsection to 

7 address the needs described in paragraph (2). 

8 (4) ADMINISTRATION AND TECHNICAL ASSIST9 ANCE.—Of the amount appropriated under this sec10 tion, not greater than 10 percent shall be available 

11 to the Secretary of Housing and Urban Development 

12 for administration, evaluation, and technical assist13 ance activities to carry out the grant program under 

14 this subsection. 

15 SEC. 705. FAIR ACCESS TO FINANCIAL SERVICES. 

16 (a) IN GENERAL.—All persons shall be entitled to the 

17 full and equal enjoyment of the goods, services, facilities, 

18 privileges, and accommodations of any financial institu19 tion, as defined in section 803 of the Payment, Clearing, 

20 and Settlement Supervision Act of 2010 (12 U.S.C. 5462), 

21 without discrimination on the ground of race, color, reli22 gion, national origin, and sex (including sexual orientation 

23 and gender identity). 

24 (b) PRIVATE RIGHT OF ACTION.— 


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1 (1) IN GENERAL.—Whenever any person has 

2 engaged or there are reasonable grounds to believe 

3 that any person is about to engage in any act or 

4 practice prohibited by subsection (a), a civil action 

5 for preventive relief, including an application for a 

6 permanent or temporary injunction, restraining 

7 order, or other order, may be instituted by the per8 son aggrieved. 

9 (2) COSTS.—In any action commenced pursu10 ant to this section, the court, in its discretion, may 

11 allow the prevailing party, other than the United 

12 States, a reasonable attorney’s fee as part of the 

13 costs, and the United States shall be liable for costs 

14 the same as a private person. 

15 (3) JURISDICTION.—The district courts of the 

16 United States shall have jurisdiction of proceedings 

17 instituted pursuant to this section and shall exercise 

18 the same without regard to whether the aggrieved 

19 party shall have exhausted any administrative or 

20 other remedies that may be provided by law. 

21 (4) EXCLUSIVE MEANS.—The remedies pro22 vided in this subsection shall be the exclusive means 

23 of enforcing the rights based on this section, but 

24 nothing in this section shall preclude any individual 

25 or any State or local agency from asserting any 


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1 right based on any other Federal or State law not 

2 inconsistent with this section, including any statute 

3 or ordinance requiring nondiscrimination in goods, 

4 services, facilities, privileges, and accommodations of 

5 any financial institution, or from pursuing any rem6 edy, civil or criminal, which may be available for the 

7 vindication or enforcement of such right. 

8 SEC. 706. CONSUMER PROTECTIONS FOR INDIVIDUALS 

9 WITH NONVIOLENT CRIMINAL RECORD. 

10 No institution may deny financial services to an ap11 plicant solely based on a prior conviction for a nonviolent 

12 cannabis offense. 

13 TITLE VIII—MISCELLANEOUS 

14 SEC. 801. COMPTROLLER GENERAL REVIEW OF LAWS AND 

15 REGULATIONS. 

16 (a) IN GENERAL.—The Comptroller General shall 

17 conduct a review of Federal laws, regulations, and policies 

18 to— 

19 (1) determine if any changes in them are desir20 able in the light of the purposes and provisions of 

21 this Act; 

22 (2) identify any use of the terms ‘‘marijuana’’ 

23 or ‘‘marihuana’’ in the rulings, regulations, or inter24 pretations of various administrative bureaus and 

25 agencies of the United States and recommend that 


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1 such terms be replaced with the term ‘‘cannabis’’; 

2 and 

3 (3) identify any use of the terms ‘‘marijuana’’ 

4 or ‘‘marihuana’’ in the statutes of the United States 

5 and propose any amendments necessary to such 

6 statutes to replace such terms with the term ‘‘can7 nabis’’. 

8 (b) REPORT.—Not later than 2 years after the date 

9 of the enactment of this Act, the Comptroller General shall 

10 make to Congress and the relevant agencies such rec11 ommendations relating to the results of the review de12 scribed in subsection (a) as the Comptroller General 

13 deems appropriate. 

14 SEC. 802. CANNABIS PRODUCTS ADVISORY COMMITTEE. 

15 (a) ESTABLISHMENT.— 

16 (1) IN GENERAL.—There is established the 

17 Cannabis Products Advisory Committee (in this sec18 tion referred to as the ‘‘Committee’’). 

19 (2) PURPOSE.—The Committee shall advise any 

20 relevant Federal regulatory body, agency, or bureau 

21 regarding the administration of this Act (including 

22 any amendments made by this Act). 

23 (b) MEMBERSHIP.— 

24 (1) APPOINTMENTS.— 


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1 (A) IN GENERAL.—The Committee shall be 

2 composed of 22 members who are appointed by 

3 the Secretary of Health and Human Services 

4 (in this section referred to as the ‘‘Secretary’’). 

5 (B) DATE.—The Secretary shall make the 

6 appointments described in subparagraph (A) 

7 not later than 60 days after the date of enact8 ment of this section. 

9 (2) TERM OF SERVICE.— 

10 (A) IN GENERAL.—Each member of the 

11 Committee shall serve a term of 5 years from 

12 the date of appointment by the Secretary. No 

13 member may be removed prior to the expiration 

14 of his or her term without a showing of good 

15 cause. 

16 (B) REAPPOINTMENT.—A member may be 

17 reappointed but may not serve more than 2 

18 terms. 

19 (C) VACANCIES.— 

20 (i) IN GENERAL.—Any vacancy in the 

21 Committee shall be filled by the Secretary 

22 not later than 90 days after the vacancy. 

23 (ii) TERM.—A member appointed to 

24 fill a vacancy in the Committee shall serve 

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1 mainder of the original term of appoint2 ment. 

3 (3) MEMBERSHIP COMPOSITION.—The Com4 mittee shall be composed of the following members: 

5 (A) INDUSTRY STAKEHOLDERS.—Three 

6 representatives from the cannabis industry, not 

7 less than 1 of which is an individual rep8 resenting a historically underrepresented com9 munity or an individual adversely impacted by 

10 the War on Drugs (as defined in section 301 of 

11 this Act), including— 

12 (i) 2 individuals who represent the 

13 viewpoint of cannabis cultivators and proc14 essors; and 

15 (ii) 1 individual who represents the 

16 viewpoint of cannabis wholesalers and re17 tailers. 

18 (B) EQUITY AND SOCIAL JUSTICE ADVO19 CATE.—One individual with experience in equity 

20 and social justice advocacy with respect to the 

21 cannabis industry and criminal justice. 

22 (C) STATE CANNABIS REGULATOR.—One 

23 individual who represents the viewpoint of State 

24 cannabis regulators. 


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1 (D) CONSUMERS AND PATIENTS.—One in2 dividual who represents the viewpoint of can3 nabis consumers and patients. 

4 (E) PUBLIC HEALTH, MEDICINE, OR

5 SCIENCE.—Four individuals who are technically 

6 qualified by training and experience in public 

7 health, medicine, or other sciences, including— 

8 (i) 2 individuals with domestic or 

9 international cannabinoid research experi10 ence, 1 of whom shall also have experience 

11 treating patients using medical cannabis; 

12 and 

13 (ii) 2 individuals with experience in 

14 substance use and misuse prevention, 

15 intervention, and treatment, 1 of whom 

16 shall have such experience pertaining to in17 dividuals under 21 years of age. 

18 (F) PUBLIC SAFETY.—One individual with 

19 experience in public safety with respect to can20 nabis and the cannabis industry. 

21 (G) OFFICE OF NATIONAL DRUG CONTROL

22 POLICY.—One representative from the Office of 

23 National Drug Control Policy. 


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1 (H) DEPARTMENT OF VETERANS AF2 FAIRS.—One representative from the Depart3 ment of Veterans Affairs. 

4 (I) ALCOHOL, TOBACCO, AND CANNABIS

5 TAX AND TRADE BUREAU.—One representative 

6 from the Alcohol, Tobacco, and Cannabis Tax 

7 and Trade Bureau. 

8 (J) NATIONAL GOVERNORS ASSOCIA9 TION.—One representative from the National 

10 Governors Association. 

11 (K) DEPARTMENT OF TRANSPORTATION.— 

12 One representative from the Department of 

13 Transportation. 

14 (L) DEPARTMENT OF HEALTH AND

15 HUMAN SERVICES.—Four representatives from 

16 the Department of Health and Human Services, 

17 including from the Food and Drug Administra18 tion, the Centers for Disease Control and Pre19 vention, the National Institutes of Health, and 

20 the Substance Abuse and Mental Health Serv21 ices Administration. 

22 (M) LABOR UNIONS.—One labor union 

23 representative. 

24 (N) INDIAN TRIBE.—One representative 

25 from an Indian Tribe. 


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1 (4) ADMINISTRATIVE SUPPORT.—The Secretary 

2 shall furnish the Committee clerical and other assist3 ance to enable the Committee to perform its duties. 

4 (5) COMPENSATION.— 

5 (A) COMPENSATION OF MEMBERS.—A 

6 member of the Committee who is not an officer 

7 or employee of the Federal Government shall be 

8 compensated at a rate fixed by the Secretary, 

9 which may not exceed the daily equivalent of 

10 the rate in effect under the Senior Executive 

11 Schedule under section 5382 of title 5, United 

12 States Code, for each day (including travel 

13 time) during which the member is engaged in 

14 the performance of the duties of the Committee. 

15 (B) TRAVEL EXPENSES.—While away from 

16 their home or regular place of business in the 

17 performance of services for the Committee, a 

18 member of the Committee shall be allowed trav19 el expenses, including per diem in lieu of sub20 sistence, at rates authorized by section 5703 of 

21 title 5, United States Code, for persons in Gov22 ernment service employed intermittently. 

23 (6) CHAIR.—The Committee shall select a 

24 Chair from among the members of the Committee. 


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1 (7) SUBCOMMITTEES.—The Committee may es2 tablish subcommittees to facilitate the ability of the 

3 Committee to discharge its duties (as described in 

4 subsection (c)). 

5 (c) DUTIES.—The Committee shall— 

6 (1) consider all matters submitted to it by the 

7 Secretary; 

8 (2) on its own initiative, recommend to the Sec9 retary guidelines, rules, and regulations and any 

10 changes to guidelines, rules, and regulations that the 

11 Committee considers important or necessary for the 

12 Secretary’s review and consideration, with a focus on 

13 ensuring equity and social justice in such guidelines, 

14 rules, and regulations; 

15 (3) consider the safety of introducing new can16 nabis products into the market; 

17 (4) review and recommend public health surveil18 lance activities to monitor population-level health ef19 fects with respect to cannabis; 

20 (5) identify and prioritize gaps in the science 

21 important to public health and medicine with respect 

22 to cannabis; 

23 (6) make recommendations to the Secretary of 

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1 tions under section 302(a)(2)(B) of the Federal Al2 cohol Administration Act (27 U.S.C. 201 et seq.) (as 

3 added by section 511); and 

4 (7) not later than 1 year after the date of en5 actment of this section, and annually thereafter, 

6 publish a publicly available report describing the ac7 tivities of the Committee, including any rec8 ommendations the Committee made to the Secretary 

9 during the reporting period and whether such rec10 ommendations were implemented. 

11 (d) MEETINGS.— 

12 (1) FREQUENCY.— 

13 (A) IN GENERAL.—The Committee shall 

14 meet on a quarterly basis but may meet more 

15 frequently if necessary. 

16 (B) CANCELLATION.— 

17 (i) IN GENERAL.—Subject to clause 

18 (ii), the Chair may cancel a Committee 

19 meeting not less than 3 business days prior 

20 to such meeting if, in consultation with the 

21 members of the Committee, the Chair de22 termines— 

23 (I) the meeting is not needed; or 

24 (II) there will not be a quorum 

25 present at such meeting. 


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1 (ii) EXCEPTIONS.—Any meeting may 

2 be canceled by the Chair at any time due 

3 to inclement weather or an emergency situ4 ation. 

5 (2) VOTING.— 

6 (A) QUORUM.— 

7 (i) IN GENERAL.—A majority of the 

8 members of the Committee shall constitute 

9 a quorum. 

10 (ii) REQUIREMENT.—A quorum of 

11 members shall be required for any decision 

12 of the Committee. 

13 (iii) EFFECT OF NO QUORUM.—In the 

14 absence of such a quorum, any business 

15 transacted by the Committee shall be null 

16 and void, except any measure taken to ob17 tain a quorum or to reschedule another 

18 meeting. 

19 (B) MAJORITY VOTE.—Any decision by or 

20 recommendation to the Secretary of the Treas21 ury or the Secretary of Health and Human 

22 Services from the Committee shall be adopted 

23 by a majority vote of the Committee. 

24 (C) CONSENSUS; VOTE RECORDING.— 


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1 (i) IN GENERAL.—Decision-making by 

2 the Committee shall be by consensus when 

3 possible. 

4 (ii) NO CONSENSUS.— 

5 (I) VOTE.—If consensus cannot 

6 be reached by the Committee, a vote 

7 of the members of the Committee will 

8 be taken. 

9 (II) QUORUM REQUIRED.—To 

10 take a vote under subclause (I), a 

11 quorum of the members shall be 

12 present. 

13 (III) RECORDING.—The results 

14 of any vote taken under subclause (I) 

15 shall be recorded, as well as any state16 ment of concurrence or disagreement, 

17 if applicable. 

18 (3) TELECONFERENCE.—A member may fully 

19 participate in a meeting via teleconference. 

20 (4) CONFIDENTIALITY.— 

21 (A) IN GENERAL.—Any discussion of the 

22 Committee relative to the work of the Com23 mittee is regarded as confidential information 

24 and may not be discussed in any form outside 

25 the context of the Committee meetings. 


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1 (B) WAIVER REQUESTS.—Any materials 

2 submitted to the Committee under section 

3 302(a)(2)(B) of the Federal Alcohol Adminis4 tration Act (27 U.S.C. 201 et seq.) (as added 

5 by section 511), and any transcript made with 

6 respect to such submission regarding any par7 ticular person, shall be redacted. 

8 (5) NON-APPLICATION OF FACA.—Section 10 of 

9 the Federal Advisory Committee Act (5 U.S.C. 

10 App.) shall not apply to any part of a meeting held 

11 by the Committee with respect to a waiver request 

12 submitted to the Committee under section 

13 302(a)(2)(B) of the Federal Alcohol Administration 

14 Act (27 U.S.C. 201 et seq.) (as added by section 

15 511). 

16 (e) STATEMENTS OF POLICY.—A member of the 

17 Committee may not make a statement of policy that pur18 ports to be that of the Committee unless the Committee 

19 has adopted such a policy, except that any such member 

20 shall not be prohibited from stating his or her personal 

21 opinion, provided the opinion is clearly identified as such. 

22 (f) TERMINATION.—Section 14 of the Federal Advi23 sory Committee Act (5 U.S.C. App.) shall not apply to 

24 the Committee. 


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1 SEC. 803. DEFINITION OF HEMP UNDER USDA DOMESTIC 

2 HEMP PRODUCTION PROGRAM. 

3 Section 297A(1) of the Agricultural Marketing Act 

4 of 1946 (7 U.S.C. 1639o(1)) is amended— 

5 (1) by striking ‘‘The term’’ and inserting the 

6 following: 

7 ‘‘(A) IN GENERAL.—The term’’; and 

8 (2) in subparagraph (A) (as so designated), by 

9 striking ‘‘with a delta-9 tetrahydrocannabinol con10 centration of not more than 0.3 percent on a dry 

11 weight basis.’’ and inserting the following: ‘‘and any 

12 products made or derived from such plant or parts, 

13 with a total tetrahydrocannabinol equivalent con14 centration of not more than the allowable 

15 tetrahydrocannabinol equivalent amount described in 

16 subparagraph (C). 

17 ‘‘(B) TOTAL TETRAHYDROCANNABINOL

18 EQUIVALENT.— 

19 ‘‘(i) IN GENERAL.—Subject to clause 

20 (ii), in subparagraph (A), the term ‘total 

21 tetrahydrocannabinol equivalent’ means— 

22 ‘‘(I) any tetrahydrocannabinol, 

23 including— 

24 ‘‘(aa) delta-8 

25 tetrahydrocannabinol; 


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1 ‘‘(bb) delta-9 

2 tetrahydrocannabinol; 

3 ‘‘(cc) delta-10 

4 tetrahydrocannabinol; and 

5 ‘‘(dd) tetrahydrocannabinolic 

6 acid; and 

7 ‘‘(II) any other substance de8 scribed in paragraph (tt)(1)(A) of sec9 tion 201 of the Federal Food, Drug, 

10 and Cosmetic Act (21 U.S.C. 321) 

11 that has similar effects on the body as 

12 a substance described in item (aa), 

13 (bb), or (cc) of subclause (I), includ14 ing through interaction with other 

15 substances in the applicable product. 

16 ‘‘(ii) EXCLUSION OF ISOMERS.—The 

17 Secretary of Health and Human Services, 

18 in consultation with the Secretary of the 

19 Treasury and the Attorney General, may 

20 exclude 1 or more isomers of 

21 tetrahydrocannabinol from the definition 

22 under clause (i). 

23 ‘‘(C) ALLOWABLE

24 TETRAHYDROCANNABINOL EQUIVALENT

25 AMOUNT.— 


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1 ‘‘(i) IN GENERAL.—Subject to clause 

2 (ii), the allowable tetrahydrocannabinol 

3 equivalent amount referred to in subpara4 graph (A) is— 

5 ‘‘(I) except as provided in sub6 clause (II), 1 milligram of total 

7 tetrahydrocannabinol per 100 grams 

8 on a dry weight basis (or a propor9 tionate amount of any fraction there10 of); and 

11 ‘‘(II) in the case of any specified 

12 plant product described in clause (iii), 

13 0.7 percent total tetrahydrocannabinol 

14 equivalent on a dry weight basis. 

15 ‘‘(ii) MODIFICATION; DETERMINATION

16 WITH RESPECT TO

17 TETRAHYDROCANNABINOLIC ACID.—For 

18 purposes of clause (i), under regulations 

19 promulgated by the Secretary of Health 

20 and Human Services, in consultation with 

21 the Secretary of the Treasury and the At22 torney General— 

23 ‘‘(I) the Secretary may modify 

24 the allowable tetrahydrocannabinol 

25 equivalent amounts described in 


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1 clause (i) if the Secretary determines 

2 that the effects on the body of such 

3 substance or interaction of substances 

4 differ significantly from the effects on 

5 the body of delta-9 

6 tetrahydrocannabinol; and 

7 ‘‘(II) rules similar to the rules re8 lating to the determination of ‘Total 

9 THC’ in section 990.1 of title 7, Code 

10 of Federal Regulations (as in effect on 

11 the date of enactment of the Cannabis 

12 Administration and Opportunity Act), 

13 shall apply in calculating the ratio of 

14 tetrahydrocannabinolic acid described 

15 in subparagraph (B)(i)(I)(dd) taken 

16 into account for purposes of deter17 mining the allowable 

18 tetrahydrocannabinol equivalent 

19 amount. 

20 ‘‘(iii) SPECIFIED PLANT PRODUCT.—A 

21 specified plant product referred to in 

22 clause (i)(II) is any item described in para23 graph (tt)(1)(A) of section 201 of the Fed24 eral Food, Drug, and Cosmetic Act (21 

25 U.S.C. 321) that does not contain any 


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1 item described in that paragraph that has 

2 been processed, extracted, or concentrated 

3 (other than harvesting, drying, curing, or 

4 trimming).’’. 

5 SEC. 804. GRANTS FOR HIRING AND TRAINING RELATING 

6 TO CANNABIS ENFORCEMENT. 

7 (a) AMENDMENT.—Section 1701 of title I of the Om8 nibus Crime Control and Safe Streets Act of 1968 (34 

9 U.S.C. 10381) is amended— 

10 (1) by redesignating subsection (m) as sub11 section (p); 

12 (2) by redesignating subsection (n) as sub13 section (o); and 

14 (3) by inserting after subsection (l) the fol15 lowing: 

16 ‘‘(m) COPS GRANTS FOR SMALL DEPARTMENTS TO

17 COMBAT ILLICIT CANNABIS PRODUCTION AND DISTRIBU18 TION.— 

19 ‘‘(1) ELIGIBLE ENTITY DEFINED.—In this sub20 section, the term ‘eligible entity’ means a law en21 forcement agency that— 

22 ‘‘(A) has not more than 50 sworn law en23 forcement officers; 

24 ‘‘(B) serves not more than 50,000 resi25 dents; and 


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1 ‘‘(C) demonstrates a need for additional 

2 personnel to combat illicit cannabis production 

3 and distribution. 

4 ‘‘(2) GRANTS.—The Attorney General shall 

5 award competitive grants to eligible entities for hir6 ing— 

7 ‘‘(A) sworn law enforcement officers; 

8 ‘‘(B) non-sworn law enforcement officers; 

9 ‘‘(C) investigators; and 

10 ‘‘(D) community outreach specialists. 

11 ‘‘(n) CANNABIS LAW EDUCATION PROGRAMS AND

12 TECHNICAL ASSISTANCE.— 

13 ‘‘(1) PROGRAM DEVELOPMENT.—The Attorney 

14 General shall develop Federal education programs 

15 and technical assistance for State and local law en16 forcement agencies to develop the knowledge and ex17 pertise necessary to ensure— 

18 ‘‘(A) the enforcement of State and Federal 

19 cannabis laws; and 

20 ‘‘(B) that the enforcement described in 

21 subparagraph (A) is consistent with the Con22 stitution of the United States. 

23 ‘‘(2) STATE-SPECIFIC TRAINING AND GUID24 ANCE.—The Director of the Bureau of Justice As25 sistance shall develop State-specific training and 


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1 guidance for law enforcement agencies within a ju2 risdiction for use in the Federal education programs 

3 described in paragraph (1). 

4 ‘‘(3) GRANTS.—The Attorney General shall 

5 award grants to law enforcement agencies for the 

6 costs associated with training under this sub7 section.’’. 

8 (b) APPROPRIATIONS.—In addition to amounts other9 wise available, there is appropriated, out of any funds in 

10 the Treasury not otherwise appropriated, $15,000,000 for 

11 each of fiscal years 2025 through 2029 to carry out this 

12 section. 

13 SEC. 805. SEVERABILITY. 

14 If any provision of this Act or an amendment made 

15 by this Act, or any application of such provision to any 

16 person or circumstance, is held to be unconstitutional, the 

17 remainder of this Act, the amendments made by this Act, 

18 and the application of this Act and the amendments made 

19 by this Act to any other person or circumstance shall not 

20 be affected. 

Æ 


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