I 

118TH CONGRESS 

1ST SESSION H. R. 6028 

To amend the Controlled Substances Act regarding marihuana, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 24, 2023 

Ms. MACE (for herself, Mr. MCCLINTOCK, Mr. PHILLIPS, Mr. TRONE, and Mr. 

GAETZ) introduced the following bill 

OCTOBER 25, 2023 

Referred to the Committee on Energy and Commerce, and in addition to the 

Committees on the Judiciary, Natural Resources, Agriculture, Transportation and Infrastructure, Armed Services, Ways and Means, Small Business, Veterans’ Affairs, Oversight and Accountability, Education and the 

Workforce, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Controlled Substances Act regarding 

marihuana, and for other purposes. 

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 ‘‘States Reform Act of 2023’’. 


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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. 

TITLE I—DECRIMINALIZATION OF MARIJUANA AND DEFERENCE 

TO STATE POWERS OF PROHIBITION 

Sec. 101. Federal decriminalization of cannabis, and State control deference. 

Sec. 102. Second Chances for Nonviolent Cannabis Offenders. 

Sec. 103. GCA provisions. 

TITLE II—REGULATION OF MARIJUANA LIKE ALCOHOL 

Sec. 201. Food and Drug Administration. 

Sec. 202. Department of Agriculture regulation of raw cannabis. 

Sec. 203. Addition of raw cannabis to certain authorities relating to agricultural production. 

Sec. 204. Administration like alcohol under Tax and Trade Bureau. 

Sec. 205. Transferring agency functions with regard to marijuana. 

Sec. 206. Transition safe harbor and administrative remedies. 

Sec. 207. Unfair advertising practices and 21 age limit. 

Sec. 208. Federal cannabis administration under the Federal Alcohol Administration Act. 

TITLE III—DESIGNATED STATE MEDICAL CANNABIS PRODUCT 

SAFETY ACT 

Sec. 301. Grandfathering of State medical cannabis products into interstate 

commerce. 

TITLE IV—SMALL BUSINESS ADMINISTRATION PROVISIONS 

Sec. 401. Fair Small Business Administration access. 

Sec. 402. Disaster loan nondiscrimination. 

Sec. 403. Microloan nondiscrimination. 

Sec. 404. Small business investment company debenture nondiscrimination. 

Sec. 405. State or local development loan non-discrimination. 

Sec. 406. Rulemaking and disbursement. 

Sec. 407. Administrative Procedure Act and mandamus remedies. 

TITLE V—IMPOSITION OF CANNABIS EXCISE TAX 

Sec. 501. Law enforcement retraining and successful second chances fund. 

Sec. 502. Cannabis Revenue and Regulation Act. 

Sec. 503. Reports and conforming amendments. 

TITLE VI—VETERANS’ CARE AND ACCESS 

Sec. 601. Nondiscrimination in Federal hiring for veteran medical cannabis 

users. 

Sec. 602. Authorized provision of information on State-approved marijuana 

programs to veterans. 

TITLE VII—MISCELLANEOUS UPDATES AND TECHNICAL 

AMENDMENTS 


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Sec. 701. United States international cannabis commerce policy. 

Sec. 702. Continued Federal employee drug testing. 

Sec. 703. Demographic data on new industry of cannabis business owners and 

employees. 

Sec. 704. Conforming amendment to create uniformity of references in existing 

law to cannabis, marijuana, or marihuana. 

Sec. 705. Security clearances. 

Sec. 706. Effective upon enactment. 

1 TITLE I—DECRIMINALIZATION 

2 OF MARIJUANA AND DEF3 ERENCE TO STATE POWERS 

4 OF PROHIBITION 

5 SEC. 101. FEDERAL DECRIMINALIZATION OF CANNABIS, 

6 AND STATE CONTROL DEFERENCE. 

7 (a) PREEMPTION OF CANNABIS REMOVED FROM

8 SCHEDULE OF CONTROLLED SUBSTANCES.— 

9 (1) REMOVAL OF FEDERAL CONTROLLED SUB10 STANCES ACT PREEMPTION.—Subsection (c) of 

11 schedule I of section 202(c) of the Controlled Sub12 stances Act (21 U.S.C. 812) is amended— 

13 (A) by striking ‘‘(10) Marihuana.’’; and 

14 (B) by striking ‘‘(17) 

15 Tetrahydrocannabinols, except for 

16 tetrahydrocannabinols in hemp (as defined in 

17 section 297A of the Agricultural Marketing Act 

18 of 1946).’’. 

19 (2) TREATMENT LIKE ALCOHOL IN CON20 TROLLED SUBSTANCES ACT.—The Controlled SubVerDate Sep 11 2014 23:29 Nov 07, 2023 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6028.IH H6028

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1 stances Act (21 U.S.C. 802(6)) is amended—by in2 serting ‘‘Marihuana,’’ after ‘‘malt beverages,’’. 

3 (3) RESIDUAL RULEMAKING.—Not later than 

4 30 days after the date of the enactment of this Act, 

5 the Attorney General shall administratively revise 

6 the current regulations at 21 CFR 1308.11 and re7 lated provisions to clarify that for the purposes of 

8 the Controlled Substances Act and related statutes, 

9 in light of the States Reform Act, marihuana and 

10 tetrahydrocannabinols are each deemed by Congress 

11 to be a drug or other substance that does not meet 

12 the requirements for inclusion in any schedule. Such 

13 administrative rulemaking amendments shall not be 

14 subject to the requirements of the Administrative 

15 Procedure Act other than notice of changes in the 

16 Federal Register. Any regulations inconsistent with 

17 this Act shall be deemed invalid on the date of en18 actment of this Act for all purposes including but 

19 not limited to any offense committed, case pending, 

20 conviction entered, and, in the case of a juvenile, any 

21 offense committed, case pending, and adjudication of 

22 juvenile delinquency entered before, on, or after the 

23 date of enactment of this Act. 


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1 (b) CONFORMING AMENDMENTS TO CONTROLLED

2 SUBSTANCES ACT AND CONTROLLED SUBSTANCES IM3 PORT AND EXPORT ACT.— 

4 (1) The Controlled Substances Act (21 U.S.C. 

5 801 et seq.) is amended— 

6 (A) in section 102(44) (21 U.S.C. 

7 802(44)), by striking ‘‘marihuana,’’; 

8 (B) in section 401(b) (21 U.S.C. 

9 841(b))— 

10 (i) in paragraph (1)— 

11 (I) in subparagraph (A)— 

12 (aa) in clause (vi), by insert13 ing ‘‘or’’ after the semicolon; 

14 (bb) by striking clause (vii); 

15 and 

16 (cc) by redesignating clause 

17 (viii) as clause (vii); 

18 (II) in subparagraph (B)— 

19 (aa) in clause (vi), by insert20 ing ‘‘or’’ after the semicolon; 

21 (bb) by striking clause (vii); 

22 and 

23 (cc) by redesignating clause 

24 (viii) as clause (vii); 


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1 (III) in subparagraph (C), in the 

2 first sentence, by striking ‘‘subpara3 graphs (A), (B), and (D)’’ and insert4 ing ‘‘subparagraphs (A) and (B)’’; 

5 (IV) by striking subparagraph 

6 (D); 

7 (V) by redesignating subpara8 graph (E) as subparagraph (D); and 

9 (VI) in subparagraph (D)(i), as 

10 so redesignated, by striking ‘‘subpara11 graphs (C) and (D)’’ and inserting 

12 ‘‘subparagraph (C)’’; 

13 (ii) by striking paragraph (4); and 

14 (iii) by redesignating paragraphs (5), 

15 (6), and (7) as paragraphs (4), (5), and 

16 (6), respectively; 

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

18 842(c)(2)(B)), by striking ‘‘, marihuana,’’; 

19 (D) in section 403(d)(1) (21 U.S.C. 

20 843(d)(1)), by striking ‘‘, marihuana,’’; 

21 (E) in section 418(a) (21 U.S.C. 859(a)), 

22 by striking the last sentence; 

23 (F) in section 419(a) (21 U.S.C. 860(a)), 

24 by striking the last sentence; 


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1 (G) in section 422(d) (21 U.S.C. 

2 863(d))— 

3 (i) in the matter preceding paragraph 

4 (1), by striking ‘‘marijuana,’’; and 

5 (ii) in paragraph (5), by striking ‘‘, 

6 such as a marihuana cigarette,’’; 

7 (H) in section 503 (21 U.S.C. 24 

8 873(a)(5) and (6)), by striking ‘‘controlled sub9 stances’’ each place the term appears and in10 serting ‘‘controlled substances and mari11 huana,’’; and 

12 (I) in section 516(d) (21 U.S.C. 886(d)), 

13 by striking ‘‘section 401(b)(6)’’ each place the 

14 term appears and inserting ‘‘section 401(b)(5)’’. 

15 (2) Section 1010(b) of the Controlled Sub16 stances Import and Export Act (21 U.S.C. 960) is 

17 amended— 

18 (A) in paragraph (1)— 

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

20 ‘‘or’’ after the semicolon; 

21 (ii) by striking subparagraph (G); and 

22 (iii) by redesignating subparagraph 

23 (H) as subparagraph (G); 

24 (B) in paragraph (2)— 


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

2 ‘‘or’’ after the semicolon; 

3 (ii) by striking subparagraph (G); and 

4 (iii) by redesignating subparagraph 

5 (H) as subparagraph (G); 

6 (C) in paragraph (3), by striking ‘‘para7 graphs (1), (2), and (4)’’ and inserting ‘‘para8 graphs (1) and (2)’’; 

9 (D) by striking paragraph (4); and 

10 (E) by redesignating paragraphs (5), (6), 

11 and (7) as paragraphs (4), (5), and (6), respec12 tively. 

13 (c) OTHER CONFORMING AMENDMENTS.— 

14 (1) NATIONAL FOREST SYSTEM DRUG CONTROL

15 ACT OF 1986.—The National Forest System Drug 

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

17 amended— 

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

19 559b(a)) by striking ‘‘marijuana and other’’; 

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

21 559c(2)) by striking ‘‘marijuana and other’’; 

22 and 

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

24 559d(2)) by striking ‘‘marijuana and other’’. 


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1 (2) INTERCEPTION OF COMMUNICATIONS.—Sec2 tion 2516 of title 18, United States Code, is amend3 ed— 

4 (A) in subsection (1)(e), by striking ‘‘mari5 huana,’’; and 

6 (B) in subsection (2) by striking ‘‘mari7 huana’’. 

8 (3) FMCSA PROVISIONS.— 

9 (A) CONFORMING AMENDMENT.—Section 

10 31301(5) of title 49, United States Code, is 

11 amended by striking ‘‘section 31306,’’ and in12 serting ‘‘sections 31306, 31306a, and sub13 sections (b) and (c) of section 31310,’’. 

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

15 title 49, United States Code, is amended— 

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

17 and inserting the following: ‘‘means— 

18 ‘‘(A) any substance’’; and 

19 (ii) by striking the period at the end 

20 and inserting: 

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

23 section as of December 1, 2018, and specified 

24 by the Secretary of Transportation.’’. 


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1 (C) DISQUALIFICATIONS.—Section 

2 31310(b) of title 49, United States Code, is 

3 amended by adding at the end the following: 

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

5 term ‘controlled substance’ has the meaning given 

6 such term in section 31306(a).’’. 

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

8 49, United States Code, is amended— 

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

10 and inserting the following: ‘‘means— 

11 ‘‘(A) any substance’’; and 

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

13 inserting: 

14 ‘‘(B) any substance not covered under sub15 paragraph (A) that was a substance under such 

16 section as of December 1, 2018, and specified 

17 by the Secretary of Transportation.’’. 

18 (5) FRA PROVISIONS.—Section 20140(a) 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: 


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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 specified 

4 by the Secretary of Transportation.’’. 

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

6 title 49, United States Code, is amended— 

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

8 and inserting the following: ‘‘means— 

9 ‘‘(A) any substance’’; and 

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

11 inserting: 

12 ‘‘(B) any substance not covered under sub13 paragraph (A) that was a substance under such 

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

15 the Secretary of Transportation decides has a 

16 risk to transportation safety.’’. 

17 (7) ELECTRONIC CANNABIS DELIVERY SYS18 TEM.—Section 375(7)(C) of title 15, United States 

19 Code, is amended by adding at the end the fol20 lowing: 

21 ‘‘(16) ELECTRONIC CANNABIS DELIVERY SYS22 TEM.— 

23 ‘‘(A) IN GENERAL.—Electronic cannabis 

24 delivery systems are devices that are intended 

25 for the exclusive use with cannabis. 


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1 ‘‘(B) DEFINITION.—The term ‘electronic 

2 cannabis delivery system’ means an electronic 

3 device that delivers a designated State medical 

4 cannabis products within the meaning of the 

5 Federal Food Drug and Cosmetic Act or a can6 nabis product within the meaning of title III of 

7 the Federal Alcohol Administration Act, via an 

8 aerosolized or vaporized solution to the user in9 haling from the device, and any component, liq10 uid, part, or accessory of such a device, whether 

11 or not sold separately. 

12 ‘‘(C) LABELING.—Electronic cannabis de13 livery systems shall be labeled ‘NOT FOR USE 

14 WITH TOBACCO OR NICOTINE.’. 

15 ‘‘(D) SALE OF DELIVERY SYSTEMS.—The 

16 sale of electronic cannabis delivery systems, via 

17 in-person or e-commerce platforms, shall be 

18 subject to age-gate measures to ensure the sale 

19 of these devices are to appropriate age popu20 lations. 

21 ‘‘(E) NON-TOBACCO.—Electronic cannabis 

22 delivery systems are independent to that of elec23 tronic delivery systems used with tobacco and 

24 tobacco-related substances referred to as elec25 tronic nicotine delivery systems (ENDS). 


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1 ‘‘(F) LIKE ALCOHOL OR LIKE MEDICAL

2 DEVICES.—A cannabis product within the 

3 meaning of title III of the Federal Alcohol Ad4 ministration Act shall be treated like an alco5 holic beverage for the purposes of mailability 

6 and age-gate measures mentioned in section 

7 (D). A designated State medical cannabis prod8 uct within the meaning of the Federal Food 

9 Drug and Cosmetic Act, shall be treated like 

10 similar FDA-regulated therapeutics, therapeutic 

11 devices, or drugs for the purposes of mailability 

12 and age-gate measures mentioned in section 

13 (D). The Postmaster General may require a 

14 declaration from a shipper of such cannabis 

15 products, designated State medical cannabis 

16 products, or components, liquids, parts, or ac17 cessories that is sold separately from the device 

18 is not intended for use in a nicotine or tobacco 

19 product.’’. 

20 SEC. 102. SECOND CHANCES FOR NONVIOLENT CANNABIS 

21 OFFENDERS. 

22 (a) DEFINITION.—In this section: 

23 (1) RELATED NONVIOLENT MARIHUANA OF24 FENSES.—The term ‘‘related nonviolent marihuana 

25 offenses’’ shall mean any related nonviolent offenses 


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1 or convictions that would not have satisfied all ele2 ments of the charged offense or offenses but for the 

3 involvement of marijuana, marihuana as defined in 

4 section 102(16) of the Controlled Substances Act 

5 (21 U.S.C. 802(16)), or tetrahydrocannabinols ex6 cept for any offenses or convictions where it has 

7 been established in court that the individual was as8 sociated with a foreign drug cartel or operating a 

9 motor vehicle under the influence of a drug or alco10 hol within the meaning of section 13(b) of title 18, 

11 United States Code, an offense of operating or being 

12 in actual physical control of a motor vehicle within 

13 the meaning of title 36, section 4.23 of the Code of 

14 Federal Regulations, or drunken or reckless oper15 ation of vehicle, aircraft or vessel within the mean16 ing of article 111 of the Uniform Code of Military 

17 Justice, and section 911 of title 10, United States 

18 Code. 

19 (2) ASSOCIATED WITH A FOREIGN DRUG CAR20 TEL.—The term ‘‘associated with a foreign drug car21 tel’’ shall mean, in the case of an individual, that 

22 law enforcement has probable cause to believe to be 

23 connected to or an instrument of a foreign agent, 

24 drug cartel, or power. 


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1 (b) RETROACTIVE APPLICATION TO MARIHUANA OF2 FENSES.—The amendments made by this section to the 

3 Controlled Substances Act (21 U.S.C. 801 et seq.) are ret4 roactive and shall apply to any offense committed, case 

5 pending, conviction entered, and, in the case of a juvenile, 

6 any offense committed, case pending, or adjudication of 

7 juvenile delinquency entered before, on, or after the date 

8 of enactment of this Act— 

9 (1) LIMITATION OF RETROACTIVE APPLICATION

10 TO NONVIOLENT AND RELATED NONVIOLENT MARI11 HUANA OFFENSES.—Such application and retro12 activity described in this subsection (b) shall extend 

13 to any nonviolent offense involving marijuana, mari14 huana as defined in section 102(16) of the Con15 trolled Substances Act (21 U.S.C. 802(16)), or 

16 tetrahydrocannabinols and any related nonviolent 

17 marihuana offenses occurring before, on, or after the 

18 date of enactment of this Act. This provision is 

19 meant to be extended to nonviolent offenses charged, 

20 pending, or otherwise, previously found to be crimes 

21 of violence subsequently found to be unconstitution22 ally vague or restricted. 

23 (2) APPLICATION TO PENDING ACTIONS.—For 

24 all pending criminal charges or cases and convictions 

25 awaiting sentencing impacted by amendments made 


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1 by this subsection to the Controlled Substances Act 

2 (21 U.S.C. 801 et seq.), the attorney for the Govern3 ment shall drop the relevant charges or seek dis4 missal of all pending charges within 14 days after 

5 the date of enactment of this Act. Any person held 

6 in pretrial detention and entitled to dismissal of rel7 evant charges under this provision, and not detained 

8 for any other reason, shall be entitled to issuance of 

9 a writ under section 2241 of title 28, United States 

10 Code or section 1361 of title 28, United States 

11 Code, to effectuate immediate release. 

12 (3) APPLICATION TO DEFENDANTS PREVIOUSLY

13 SENTENCED.—In the case of a defendant who, be14 fore the date of enactment of this Act, was convicted 

15 or sentenced for any Federal offense involving mari16 juana, marihuana as defined in section 102(16) of 

17 the Controlled Substances Act (21 U.S.C. 802(16)), 

18 or tetrahydrocannabinols and not serving a sentence 

19 for any conduct not covered by this Act or serving 

20 multiple sentences as provided in section 3584 of 

21 title 18, United States Code, the Director of the Bu22 reau of Prisons, United States Marshals Service, or 

23 United States Parole Commission shall release such 

24 individual from its control within 14 days after the 

25 date of enactment of this Act. Any person not so 


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1 timely released and entitled to such under this provi2 sion shall be entitled to issuance of a writ under sec3 tion 2241 of title 28, United States Code or section 

4 1361 of title 28, United States Code, to effectuate 

5 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 but is also 

11 serving a sentence for any other crime not consid12 ered a related nonviolent marihuana offenses by this 

13 Act, the sentencing court may, on motion of the de14 fendant, the Director of the Bureau of Prisons, the 

15 attorney for the Government, or on its own motion, 

16 impose a reduced sentence after considering the fac17 tors set forth in section 3553(a) of title 18, United 

18 States Code. 

19 (5) LIMITATION TO ONLY CANNABIS.—This 

20 provision applies solely to persons who traded exclu21 sively in marijuana, marihuana as defined in section 

22 102(16) of the Controlled Substances Act (21 

23 U.S.C. 802(16)), or tetrahydrocannabinols rather 

24 than other substances controlled under the Con25 trolled Substances Act. 


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1 (6) SCOPE.—This provision applies to each and 

2 every organ of the Federal Government. 

3 (7) POST-PASSAGE LIMITATION.—This provision 

4 does not apply to acts or transactions occurring 

5 after the passage of this Act that are not in compli6 ance with this Act and other applicable laws. 

7 (8) JUDICIAL REVIEW.—Questions of non-vio8 lence are reviewable in any proceeding initiated 

9 under this subsection (d) or the following subsection 

10 (e). For an example of a person considered under 

11 this law to be a nonviolent cannabis offender based 

12 on the totality of facts in the case, please refer to 

13 the case of United States v. Angelos, 345 F. Supp. 

14 2d 1227 (D. Utah 2004). 

15 (9) CRIMES OF VIOLENCE EXCLUDED.—A per16 son found guilty of a crime of violence under section 

17 16(a) of title 18 of the United States Code (18 

18 U.S.C. 16(a)) is a violent offender for the purposes 

19 of this provision and ineligible for any relief under 

20 section 102 this Act. 

21 (c) CESSATION OF ALL MARIHUANA ADMINISTRA22 TIVE ACTIONS AND REPATRIATION OF PROPERTY.—Not23 withstanding any other provision of law, the Federal Gov24 ernment shall not pursue, and shall immediately desist any 

25 present administrative or enforcement action, or criminal 


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1 or civil asset forfeiture proceeding, against any United 

2 States citizen where the cause of controversy is rooted in 

3 the illicit marihuana, as defined in section 102(16) of the 

4 Controlled Substances Act (21 U.S.C. 802(16)), or 

5 tetrahydrocannabinols trade for nonviolent acts having oc6 curred between the passage of the Marijuana Tax Act of 

7 1937 (Public Law 75–238, 50 Stat. 551) and this Act, 

8 nor shall the proceeds of such trade or acts be considered 

9 the proceeds of illegal drug trade or any kind of criminal 

10 or illicit activity under sections 981, 1956 or 1957 of title 

11 18, United States Code, or any other provision of law, 

12 even if such activity occurred before the date of enactment 

13 of this Act. 

14 (1) LIMITATION TO ONLY CANNABIS.—This 

15 provision applies solely to persons who traded exclu16 sively in marijuana, marihuana as defined in section 

17 102(16) of the Controlled Substances Act (21 

18 U.S.C. 802(16)), or tetrahydrocannabinols rather 

19 than other substances controlled under the Con20 trolled Substances Act. 

21 (2) SCOPE.—This provision applies to each and 

22 every organ of the Federal Government. 

23 (3) POST-PASSAGE LIMITATION.—This provision 

24 does not apply to acts or transaction occurring after 


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1 the passage of this Act that are not in compliance 

2 with this Act and other applicable laws. 

3 (d) APPLICATION TO MILITARY LAW.—Notwith4 standing any other provision of law, the provisions of sub5 section (a) shall apply to proceedings involving military 

6 courts, tribunals, courts-martial, and offenses under the 

7 Uniform Code of Military Justice. Former servicemembers 

8 and veterans that received other than honorable, bad con9 duct, or dishonorable discharges premised solely on non10 violent cannabis offenses covered under this subsection (a) 

11 shall be entitled to petition and receive from a service 

12 branch discharge review board or the Board of Correction 

13 for Military Records, as jurisdictionally appropriate, an 

14 upgrade to a general discharge. 

15 (e) EXPUNGEMENT OF NONVIOLENT FEDERAL CAN16 NABIS OFFENSES.—Section 3607(c) of title 18, United 

17 States Code, is amended— 

18 (1) by striking ‘‘If the case’’ and inserting ‘‘(1) 

19 If the case’’; 

20 (2) by adding after ‘‘thereof.’’ the following: 

21 ‘‘(2) Not later than 1 year after the date of the enact22 ment of this Act, each Federal district shall conduct a 

23 comprehensive review and issue an order expunging, with24 out financial commitment from the offender, each convic25 tion or adjudication for any Federal offense involving 


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1 marijuana, marihuana as defined in section 102(16) of the 

2 Controlled Substances Act (21 U.S.C. 802(16)), or 

3 tetrahydrocannabinols, and any related nonviolent mari4 huana offenses, entered by each Federal court in the dis5 trict before the date of enactment of this Act. Each Fed6 eral court shall also issue an order expunging any arrests 

7 associated with each expunged conviction or adjudication 

8 unless the individual is associated with a foreign drug car9 tel. The expungement order shall direct that there be ex10 punged from all official records all references to their ar11 rest for the offense, the institution of criminal proceedings 

12 against them, and the results thereof. 

13 ‘‘(3) Any individual who otherwise qualifies for an 

14 expungement order under paragraph (2) except for the 

15 fact that they was found to be associated with a foreign 

16 drug cartel shall have the right to petition any Federal 

17 court under this clause for an individualized determination 

18 for whether an expungement order should be granted. In 

19 determining whether to enter an expungement order after 

20 such a petition the judge shall consider the interest of pub21 lic knowledge and safety, the conduct and demonstrated 

22 desire of the petitioner to be rehabilitated and positively 

23 contribute to the community, and the interest of the peti24 tioner in having the protected information expunged. 


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1 ‘‘(4) To the extent practicable, each Federal district 

2 shall notify each individual whose arrest, conviction, or ad3 judication of delinquency has been expunged pursuant to 

4 this subsection that their arrest, conviction, or adjudica5 tion of juvenile delinquency has been expunged, and the 

6 effect of such expungement.’’; and 

7 (3) by striking ‘‘The effect of’’ and inserting 

8 the following: 

9 ‘‘(5) The effect of’’. 

10 (f) TREATY COMITY AND CUSTOMS VIOLATIONS AP11 PLICABILITY.—This section 102 of this Act is not meant 

12 to alter, change, create rights, or otherwise influence or 

13 upset determinations as to admission, exclusion, removal, 

14 waiver, denial of entry, or deportation under the Immigra15 tion and Nationality Act of 1952 (8 U.S.C. 1101 et seq.), 

16 made based on a violation of the laws regarding marijuana 

17 of the United States or a signatory nation to 1961 Single 

18 Convention on Narcotic Drugs, the 1971 Convention on 

19 Psychotropic Substances, the 1972 Protocol Amending the 

20 Single Convention on Narcotic Drugs, or the 1988 United 

21 Nations Convention Against Illicit Traffic in Narcotic 

22 Drugs and Psychotropic Substances, before the enactment 

23 of this Act. 


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1 SEC. 103. GCA PROVISIONS. 

2 Section 921(a) of title 18, United States Code, is 

3 amended by adding at the end the following: 

4 ‘‘(36) The term ‘unlawful user of or addicted to 

5 any controlled substance’ shall not include a person 

6 by reason of unlawful use of or addiction to mari7 huana (as defined in section 102(16) of the Con8 trolled Substances Act, 21 U.S.C. 802(16)).’’. 

9 TITLE II—REGULATION OF 

10 MARIJUANA LIKE ALCOHOL 

11 SEC. 201. FOOD AND DRUG ADMINISTRATION. 

12 (a) FDA AUTHORITY LIMITS.—The Food and Drug 

13 Administration shall have the same authorities with re14 spect to cannabis products that it has with respect to alco15 hol and no more. 

16 (b) RULE OF CONSTRUCTION.—This clause shall not 

17 be construed to limit the Food and Drug Administration’s 

18 role in regulating designated State medical cannabis prod19 ucts, drugs or botanical drugs containing cannabis or its 

20 derivatives, cannabis cosmetics, or dietary supplements 

21 containing cannabis or its derivatives under part J of sub22 chapter V of chapter 9 of title 21 of the United States 

23 Code (the Federal Food, Drug, and Cosmetic Act). 


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1 SEC. 202. DEPARTMENT OF AGRICULTURE REGULATION OF 

2 RAW CANNABIS. 

3 (a) USDA TO REGULATE RAW CANNABIS FARM4 ING.—The United States Department of Agriculture shall 

5 have the sole authority and responsibility to regulate the 

6 farming and production of raw cannabis, including, but 

7 not limited to, the seeds, mature stalks, and cultivation 

8 of raw cannabis as a traditional agricultural commodity. 

9 (b) RULEMAKING AUTHORITY AND TIMELINE.—The 

10 Secretary of Agriculture, or their designee, in order to 

11 bring raw cannabis into line with the treatment of other 

12 traditional agricultural commodities, shall implement the 

13 Act and enter formal rulemaking according to the fol14 lowing schedule: 

15 (1) Not later than 30 days after the date of en16 actment of this Act, issue in the Federal Register a 

17 Notice of Inquiry and Notice of Proposed Rule18 making for implementation of the Act, requesting 

19 public comment. 

20 (2) Not later than 60 days after the date of en21 actment of this Act, issue an interim final rule. The 

22 Secretary or their designee may being acting on 

23 State agricultural plans submitted under section 

24 298B of the Agricultural Marketing Act of 1946 (7 

25 U.S.C. 1621 et seq.). 


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1 (3) Not later than 150 days after the date of 

2 enactment of this Act, issue a final rule and publish 

3 the report called for in subsection (d) of section 

4 7606 of the Agricultural Act of 2014 (7 U.S.C. 

5 5940). 

6 (4) Not later than 180 days after the date of 

7 enactment of this Act, begin receiving requests for 

8 licenses under this Act and acting on State agricul9 tural plans for cannabis under section 298B of the 

10 Agricultural Marketing Act of 1946 (7 U.S.C. 1621 

11 et seq.). 

12 (5) The major rule effective delay period of 60 

13 days shall apply to the Final Rule described in para14 graph (3), such that the Final Rule described in 

15 paragraph (3) is effective 210 days after the date of 

16 enactment of this Act. 

17 (c) RAW CANNABIS DEFINED; NOT FINISHED CAN18 NABIS PRODUCTS.—Raw cannabis refers to marihuana 

19 within the meaning of section 801(16) of the Controlled 

20 Substances Act (21 U.S.C. 801 et seq.) including, but not 

21 limited to, all parts of the plant cannabis sativa L., wheth22 er growing or not; the seeds thereof, and the mature stalks 

23 of the plant. Raw cannabis does not include finished prod24 ucts meant for commercial sale as cannabis products regu25 lated under title III of the Federal Alcohol Administration 


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1 Act or designated State medical cannabis products regu2 lated under part J of subchapter V of chapter 9 of title 

3 21, United States Code, (the Federal Food, Drug, and 

4 Cosmetic Act), such as the resin extracted from any part 

5 of such plant; and every compound, manufacture, salt, de6 rivative, mixture, or preparation of such plant or its resin 

7 (or industrial hemp). 

8 (d) REVISIONS TO EXISTING REGULATIONS.—Not 

9 later than 30 days after the date of enactment of this Act, 

10 without regard to the notice and comment provisions of 

11 section 553 of title 5, United States Code, the Secretary 

12 of Agriculture shall revise part 990 of title 7, Code of Fed13 eral Regulations, make any conforming changes that are 

14 necessary as a result of this section and the amendments 

15 made by this section. 

16 (e) RIGHT OF ACTION.—An adversely affected person 

17 or business shall have private right of action under the 

18 Administrative Procedure Act (5 U.S.C. 500 et seq.) and 

19 the Mandamus Act (28 U.S.C. 1361) to compel the Sec20 retary or their designated officer, employee or agent of 

21 the Department of Agriculture to issue the regulations or 

22 undertake and finalize rulemaking required under this Act 

23 that are not issued or published within the time frames 

24 set forth herein, or to act on applications for the permits 

25 or licenses herein required, within the time frames set 


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1 forth herein, or to enjoin agency action. The exclusive 

2 venue for bringing any such action shall be the District 

3 Court for the District of Columbia. Upon demonstration 

4 of undue delay or failure to adhere strictly to statutory 

5 deadlines, or other violations of law and equity, equitable 

6 relief in the form of a writ of mandamus compelling action 

7 shall issue, among such other relief as the court may see 

8 fit. 

9 SEC. 203. ADDITION OF RAW CANNABIS TO CERTAIN AU10 THORITIES RELATING TO AGRICULTURAL 

11 PRODUCTION. 

12 (a) AGRICULTURAL MARKETING ACT OF 1946.—The 

13 Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et 

14 seq.) is amended by adding at the end the following: 

15 ‘‘Subtitle H—Raw Cannabis 

16 Production 

17 ‘‘SEC. 298A. DEFINITIONS. 

18 ‘‘In this subtitle: 

19 ‘‘(1) RAW CANNABIS.—The term ‘raw cannabis’ 

20 has the same meaning as it is given in section 

21 202(3) of the States Reform Act. 

22 ‘‘(2) INDIAN TRIBE.—The term ‘Indian Tribe’ 

23 has the meaning given the term in section 4 of the 

24 Indian Self-Determination and Education Assistance 

25 Act (25 U.S.C. 5304). 


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

2 the Secretary of Agriculture. 

3 ‘‘(4) STATE.—The term ‘State’ means— 

4 ‘‘(A) a State; 

5 ‘‘(B) the District of Columbia; 

6 ‘‘(C) the Commonwealth of Puerto Rico; 

7 and 

8 ‘‘(D) any other territory or possession of 

9 the United States. 

10 ‘‘(5) STATE DEPARTMENT OF AGRICULTURE.— 

11 The term ‘State department of agriculture’ means 

12 the agency, commission, or department of a State 

13 Government responsible for agriculture in the State. 

14 ‘‘(6) TRIBAL GOVERNMENT.—The term ‘Tribal 

15 Government’ means the governing body of an Indian 

16 Tribe. 

17 ‘‘SEC. 298B. STATE AND TRIBAL PLANS. 

18 ‘‘(a) SUBMISSION.— 

19 ‘‘(1) IN GENERAL.—A State or Indian Tribe de20 siring to have primary regulatory authority over the 

21 production of the raw cannabis in the State or terri22 tory of the Indian Tribe shall submit to the Sec23 retary, through the State department of agriculture 

24 (in consultation with the Governor and chief law en25 forcement officer of the State) or the Tribal GovernVerDate Sep 11 2014 23:29 Nov 07, 2023 Jkt 049200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H6028.IH H6028

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1 ment, as applicable, a plan under which the State or 

2 Indian Tribe monitors and regulates that production 

3 as described in paragraph (2). 

4 ‘‘(2) CONTENTS.—A State or Tribal plan re5 ferred to in paragraph (1)— 

6 ‘‘(A) shall only be required to include— 

7 ‘‘(i) a practice to maintain relevant in8 formation regarding land on which raw 

9 cannabis is produced in the State or terri10 tory of the Indian Tribe, including a legal 

11 description of the land, for a period of not 

12 less than 3 calendar years; 

13 ‘‘(ii) a procedure for the effective dis14 posal of products that are produced in vio15 lation of this subtitle; and 

16 ‘‘(iii) a procedure to comply with the 

17 enforcement procedures under subsection 

18 (d); and 

19 ‘‘(B) may include any other practice or 

20 procedure established by a State or Indian 

21 Tribe, as applicable, to the extent that the prac22 tice or procedure is consistent with this subtitle. 

23 ‘‘(3) RELATION TO STATE AND TRIBAL LAW.— 

24 ‘‘(A) NO PREEMPTION.—Nothing in this 

25 subsection preempts or limits any law of a 


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1 State or Indian Tribe regulating the production 

2 of raw cannabis, to the extent that law is con3 sistent with this subtitle. 

4 ‘‘(B) REFERENCES IN PLANS.—A State or 

5 Tribal plan referred to in paragraph (1) may 

6 include a reference to a law of the State or In7 dian Tribe regulating the production of raw 

8 cannabis, to the extent that law is consistent 

9 with this subtitle. 

10 ‘‘(b) APPROVAL.— 

11 ‘‘(1) IN GENERAL.—Not later than 60 days 

12 after receipt of a State or Tribal plan under sub13 section (a), the Secretary shall— 

14 ‘‘(A) approve the State or Tribal plan if 

15 the State or Tribal plan complies with sub16 section (a); or 

17 ‘‘(B) disapprove the State or Tribal plan 

18 only if the State or Tribal plan does not comply 

19 with subsection (a). 

20 ‘‘(2) AMENDED PLANS.—If the Secretary dis21 approves a State or Tribal plan under paragraph 

22 (1)(B), the State, through the State department of 

23 agriculture (in consultation with the Governor and 

24 chief law enforcement officer of the State) or the 

25 Tribal Government, as applicable, may submit to the 


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1 Secretary an amended State or Tribal plan that 

2 complies with subsection (a). 

3 ‘‘(c) TECHNICAL ASSISTANCE.—The Secretary may 

4 provide technical assistance to a State or Indian Tribe in 

5 the development of a State or Tribal plan under subsection 

6 (a). 

7 ‘‘(d) VIOLATIONS.— 

8 ‘‘(1) IN GENERAL.—A violation of a State or 

9 Tribal plan approved under subsection (b) shall be 

10 subject to enforcement solely in accordance with this 

11 subsection. 

12 ‘‘(2) NEGLIGENT VIOLATIONS.— 

13 ‘‘(A) IN GENERAL.—A raw cannabis pro14 ducer in a State or the territory of an Indian 

15 Tribe for which a State or Tribal plan is ap16 proved under subsection (b) shall be subject to 

17 subparagraph (B) of this paragraph if the State 

18 department of agriculture or Tribal Govern19 ment, as applicable, determines that the raw 

20 cannabis producer has negligently violated the 

21 State or Tribal plan, including by negligently— 

22 ‘‘(i) failing to provide a legal descrip23 tion of land on which the producer pro24 duces raw cannabis; or 


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1 ‘‘(ii) failing to obtain a license or 

2 other required authorization from the 

3 State department of agriculture or Tribal 

4 Government, as applicable. 

5 ‘‘(B) CORRECTIVE ACTION PLAN.—A raw 

6 cannabis producer described in subparagraph 

7 (A) shall comply with a plan established by the 

8 State department of agriculture or Tribal Gov9 ernment, as applicable, to correct the negligent 

10 violation, including— 

11 ‘‘(i) a reasonable date by which the 

12 raw cannabis producer shall correct the 

13 negligent violation; and 

14 ‘‘(ii) a requirement that the raw can15 nabis producer shall periodically report to 

16 the State department of agriculture or 

17 Tribal Government, as applicable, on the 

18 compliance of the raw cannabis producer 

19 with the State or Tribal plan for a period 

20 of not less than the next 2 calendar years. 

21 ‘‘(C) RESULT OF NEGLIGENT VIOLA22 TION.—Except as provided in subparagraph 

23 (D), a raw cannabis producer that negligently 

24 violates a State or Tribal plan under subpara25 graph (A) shall not be subject to any criminal 


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1 or civil enforcement action by the Federal Gov2 ernment or any State Government, Tribal Gov3 ernment, or local government other than the en4 forcement action authorized under subpara5 graph (B). 

6 ‘‘(D) REPEAT VIOLATIONS.—A raw can7 nabis producer that negligently violates a State 

8 or Tribal plan under subparagraph (A) 3 times 

9 in a 5-year period shall be ineligible to produce 

10 raw cannabis for a period of 5 years beginning 

11 on the date of the third violation. 

12 ‘‘(3) OTHER VIOLATIONS.—If the State depart13 ment of agriculture or Tribal Government in a State 

14 or the territory of an Indian Tribe for which a State 

15 or Tribal plan is approved under subsection (b), as 

16 applicable, determines that a raw cannabis producer 

17 in the State or territory has violated the State or 

18 Tribal plan with a culpable mental state greater 

19 than negligence— 

20 ‘‘(A) the State department of agriculture 

21 or Tribal Government, as applicable, shall im22 mediately report the raw cannabis producer 

23 to— 

24 ‘‘(i) the Secretary of Agriculture; and 


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1 ‘‘(ii) in the case of a State department 

2 of agriculture, the chief agricultural official 

3 of the State; and 

4 ‘‘(B) paragraph (1) of this subsection shall 

5 not apply to the violation. 

6 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated such sums as are nec8 essary to carry out this section. 

9 ‘‘(f) EFFECT.—Nothing in this section prohibits the 

10 production of raw cannabis in a State or the territory of 

11 an Indian Tribe for which a State or Tribal plan is not 

12 approved under this section in accordance with other Fed13 eral laws (including regulations). 

14 ‘‘SEC. 298C. DEPARTMENT OF AGRICULTURE PLAN. 

15 ‘‘(a) DEPARTMENT OF AGRICULTURE PLAN.— 

16 ‘‘(1) IN GENERAL.—In the case of a State or 

17 Indian Tribe for which a State or Tribal plan is not 

18 approved under section 298B, the production of raw 

19 cannabis in that State or the territory of that Indian 

20 Tribe shall be subject to a plan established by the 

21 Secretary to monitor and regulate that production in 

22 accordance with paragraph (2). 

23 ‘‘(2) CONTENT.—A plan established by the Sec24 retary under paragraph (1) shall include— 


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1 ‘‘(A) a practice to maintain relevant infor2 mation regarding land on which raw cannabis is 

3 produced in the State or territory of the Indian 

4 Tribe, including a legal description of the land, 

5 for a period of not less than 3 calendar years; 

6 ‘‘(B) a procedure for the effective disposal 

7 of— 

8 ‘‘(i) plants, whether growing or not, 

9 that are produced in violation of this sub10 title; and 

11 ‘‘(ii) products derived from those 

12 plants; 

13 ‘‘(C) a procedure to comply with the en14 forcement procedures under subsection (c)(2); 

15 ‘‘(D) a procedure for conducting annual in16 spections of, at a minimum, a random sample 

17 of raw cannabis producers to verify that raw 

18 cannabis is not produced in violation of this 

19 subtitle; and 

20 ‘‘(E) such other practices or procedures as 

21 the Secretary considers to be appropriate, to 

22 the extent that the practice or procedure is con23 sistent with this subtitle. 


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1 ‘‘(b) LICENSING.—The Secretary shall establish a 

2 procedure to issue licenses to raw cannabis producers in 

3 accordance with a plan established under subsection (a). 

4 ‘‘(c) VIOLATIONS.— 

5 ‘‘(1) IN GENERAL.—In the case of a State or 

6 Indian Tribe for which a State or Tribal plan is not 

7 approved under section 298B, it shall be unlawful to 

8 produce raw cannabis in that State or the territory 

9 of that Indian Tribe without a license issued by the 

10 Secretary under subsection (b). 

11 ‘‘(2) NEGLIGENT AND OTHER VIOLATIONS.—A 

12 violation of a plan established under subsection (a) 

13 shall be subject to enforcement in accordance with 

14 paragraphs (2) and (3) of section 298B(d), except 

15 that the Secretary shall carry out that enforcement 

16 instead of a State department of agriculture or Trib17 al Government. 

18 ‘‘SEC. 298D. AUTHORITY TO ISSUE REGULATIONS AND 

19 GUIDELINES. 

20 ‘‘(a) SECRETARY OF AGRICULTURE SOLE AUTHOR21 ITY.—The Secretary shall have sole authority and respon22 sibility to issue Federal regulations and guidelines that re23 late to the production of raw cannabis, including Federal 

24 regulations and guidelines that relate to the implementa25 tion of section 298B. 


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1 ‘‘(b) RIGHT OF ACTION.—An adversely affected per2 son or business shall have private right of action under 

3 the Administrative Procedure Act (5 U.S.C. 500 et seq.) 

4 and the Mandamus Act (28 U.S.C. 1361) to compel the 

5 Secretary or the designated officer, employee or agent of 

6 the Department of Agriculture to issue regulations or un7 dertake and finalize rulemaking required under this Act 

8 that are not issued or published within the time frames 

9 set forth herein, or to act on applications for the permits 

10 or licenses herein required, within the time frames set 

11 forth herein, or to enjoin agency action. The exclusive 

12 venue for bringing any such action shall be the District 

13 Court for the District of Columbia. Upon demonstration 

14 of undue delay or failure to adhere strictly to statutory 

15 deadlines, or other violations of law and equity, equitable 

16 relief in the form of a writ of mandamus compelling action 

17 shall issue, among such other relief as the court may see 

18 fit.’’. 

19 (b) FUNDING FOR RAW CANNABIS RESEARCH.— 

20 (1) SUPPLEMENTAL AND ALTERNATIVE

21 CROPS.—Section 1473D(c)(3)(E) of the National 

22 Agricultural Research, Extension, and Teaching Pol23 icy Act of 1977 (7 U.S.C. 3319d(c)(3)(E)) is 

24 amended by striking ‘‘(including hemp (as defined in 

25 section 297A of the Agricultural Marketing Act of 


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1 1946))’’ and by inserting ‘‘(including hemp and raw 

2 cannabis (as defined in sections 297A and 298A of 

3 the Agricultural Marketing Act of 1946, respec4 tively))’’ after ‘‘material’’. 

5 (2) CRITICAL AGRICULTURAL MATERIALS.— 

6 Section 5(b)(9) of the Critical Agricultural Materials 

7 Act (7 U.S.C. 178c(b)(9)) is amended by striking 

8 ‘‘(including hemp (as defined in section 297A of the 

9 Agricultural Marketing Act of 1946))’’ and by in10 serting ‘‘(including hemp and raw cannabis (as de11 fined in sections 297A and 298A of the Agricultural 

12 Marketing Act of 1946, respectively))’’ after ‘‘hydro13 carbon-containing plants’’. 

14 (c) LEGITIMACY OF RAW CANNABIS RESEARCH.— 

15 Section 7606 of the Agricultural Act of 2014 (7 U.S.C. 

16 5940) is amended— 

17 (1) in subsection (b), by inserting ‘‘or raw can18 nabis’’ after each appearance of ‘‘hemp’’ in sub19 section (b); and 

20 (2) by adding at the end the following: 

21 ‘‘(d) RAW CANNABIS STUDY AND REPORT.— 

22 ‘‘(1) IN GENERAL.—The Secretary shall con23 duct a study of agricultural pilot programs to deter24 mine the economic viability of the domestic produc25 tion and sale of raw cannabis. 


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1 ‘‘(2) REPORT.—Not later than 150 days after 

2 the date of enactment of this subsection, the Sec3 retary shall submit to Congress a report describing 

4 the results of the study conducted under paragraph 

5 (1).’’. 

6 SEC. 204. ADMINISTRATION LIKE ALCOHOL UNDER TAX 

7 AND TRADE BUREAU. 

8 (a) ADDITION OF CANNABIS TO CERTAIN LEGAL AU9 THORITIES RELATING TO INTOXICATING LIQUORS.— 

10 (1) WILSON ACT.—The Act of August 8, 1890 

11 (commonly known as the Wilson Act or the Original 

12 Packages Act; 27 U.S.C. 121), is amended— 

13 (A) by inserting ‘‘, or cannabis,’’ after ‘‘in14 toxicating liquors or liquids’’; and 

15 (B) by striking ‘‘such liquids or liquors’’ 

16 and inserting ‘‘such liquids, liquors, or can17 nabis’’. 

18 (2) WEBB-KENYON ACT.—The Act of March 1, 

19 1913 (commonly known as the Webb-Kenyon Act; 

20 27 U.S.C. 122), is amended— 

21 (A) by inserting ‘‘cannabis or any’’ after 

22 ‘‘whatsoever, of any’’; 

23 (B) by inserting ‘‘cannabis or’’ after 

24 ‘‘which said’’; and 


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1 (C) by adding at the end of section 122b 

2 the following new subsection: 

3 ‘‘(c) CANNABIS REGULATION.— 

4 ‘‘(1) The Secretary of the Treasury, acting 

5 through the Alcohol and Tobacco Tax and Trade 

6 Bureau of the Department of the Treasury shall 

7 have primary authority regarding Federal regulation 

8 of the interstate and international trade in, and pro9 motion, sale, and distribution of, cannabis products, 

10 under the terms of the Administrative Procedure Act 

11 (5 U.S.C. 500 et seq.). 

12 ‘‘(2) The Secretary shall not later than 30 days 

13 after the date of enactment of this Act— 

14 ‘‘(A) issue in the Federal Register a Notice 

15 of Inquiry and Notice of Proposed Rulemaking 

16 for implementation of the Act, requesting public 

17 comment on the promotion, sale, and distribu18 tion of, cannabis products; and 

19 ‘‘(B) issue emergency rules preventing ad20 vertising of Cannabis Products to underage 

21 youth. 

22 ‘‘(3) The Secretary shall, not later than 60 days 

23 after the date of enactment of this Act, issue an in24 terim final rule regarding the promotion, sale, and 

25 distribution of cannabis under this Act and a draft 


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1 application form for permits under title III of the 

2 Federal Alcohol Administration Act. 

3 ‘‘(4) The Secretary shall, not later than 150 

4 days after the date of enactment of this Act, issue 

5 a final rule regarding the promotion, sale, and dis6 tribution of cannabis under this Act. The Secretary 

7 may begin receiving permit applications at that time. 

8 ‘‘(5) The Secretary shall, not later than 180 

9 days after the date of enactment of this Act, begin 

10 receiving requests for licenses under this Act and 

11 acting on State agricultural plans for cannabis 

12 under section 298B of the Agricultural Marketing 

13 Act of 1946 (7 U.S.C. 1621 et seq.). 

14 ‘‘(6) The major rule effective delay period of 60 

15 days shall apply to the Final Rule described in para16 graph (3), such that the Final Rule described in 

17 paragraph (3) is effective 210 days after the date of 

18 enactment of this Act. 

19 ‘‘(7) The Secretary shall expeditiously develop 

20 and implement a track-and-trace system for can21 nabis in interstate commerce. 

22 ‘‘(8) Not later than 1 year after the date of en23 actment of this Act, the Secretary shall publish an 

24 interim final rule, and not later than 2 years after 

25 such date of enactment the Secretary shall finalize 


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1 regulations regarding the promotion, sale, and dis2 tribution of cannabis products that occur through 

3 means other than a direct, face-to-face exchange be4 tween a retailer and a consumer, in order to prevent 

5 the sale and distribution of cannabis products to in6 dividuals who have not attained the age of 21, in7 cluding requirements for age verification. 

8 ‘‘(d) RULE OF CONSTRUCTION.—It is the intention 

9 of Congress that this Act be read consistently with the 

10 jurisprudence interpreting the Acts amended above and 

11 not as superseding or changing prior construction of the 

12 Acts with respect to the laws of the United States gen13 erally or the article I Commerce Clause.’’. 

14 (3) VICTIMS OF TRAFFICKING AND VIOLENCE

15 PROTECTION ACT OF 2000.—Section 2 of the Victims 

16 of Trafficking and Violence Protection Act of 2000 

17 (27 U.S.C. 122a) is amended— 

18 (A) in subsection (a)— 

19 (i) by redesignating paragraphs (3) 

20 and (4) as paragraphs (4) and (5), respec21 tively; and 

22 (ii) by inserting after paragraph (2) 

23 the following new paragraph: 


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1 ‘‘(3) the term ‘marijuana’ has the meaning 

2 given the term ‘marihuana’ in section 102 of the 

3 Controlled Substances Act (21 U.S.C. 802);’’; and 

4 (B) in subsections (b) and (c), by inserting 

5 ‘‘or marijuana’’ after ‘‘intoxicating liquor’’ each 

6 place it appears. 

7 SEC. 205. TRANSFERRING AGENCY FUNCTIONS WITH RE8 GARD TO MARIJUANA. 

9 (a) TRANSFER OF JURISDICTION FROM DRUG EN10 FORCEMENT ADMINISTRATION TO BUREAU OF ALCOHOL, 

11 TOBACCO, FIREARMS AND EXPLOSIVES.—The functions 

12 of the Attorney General, acting through the Administrator 

13 of the Drug Enforcement Administration relating to can14 nabis enforcement, shall hereafter be administered by the 

15 Attorney General, acting through the Director of the Bu16 reau of Alcohol, Tobacco, Firearms and Explosives. 

17 (b) REDESIGNATION OF BUREAU OF ALCOHOL, TO18 BACCO, FIREARMS AND EXPLOSIVES AS BUREAU OF AL19 COHOL, TOBACCO, CANNABIS, FIREARMS AND EXPLO20 SIVES.— 

21 (1) REDESIGNATION.—The Bureau of Alcohol, 

22 Tobacco, Firearms and Explosives is hereby re23 named the ‘‘Bureau of Alcohol, Tobacco, Cannabis, 

24 Firearms and Explosives’’. 


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1 (2) REFERENCES.—Any reference to the Bu2 reau of Alcohol, Tobacco, Firearms and Explosives 

3 in any law, regulation, map, document, record, or 

4 other paper of the United States shall be deemed to 

5 be a reference to the Bureau of Alcohol, Tobacco, 

6 Cannabis, Firearms and Explosives. 

7 (c) REDESIGNATION OF ALCOHOL AND TOBACCO

8 TAX AND TRADE BUREAU AS ALCOHOL, TOBACCO, AND

9 CANNABIS TAX AND TRADE BUREAU.— 

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

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

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

13 each place it appears and inserting ‘‘Alcohol, To14 bacco, and Cannabis Tax and Trade Bureau’’. 

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

16 and Trade Bureau or the Alcohol and Tobacco Tax 

17 and Trade Bureau in any law, regulation, map, doc18 ument, record, or other paper of the United States 

19 shall be deemed to be a reference to the Alcohol, To20 bacco, and Cannabis Tax and Trade Bureau. 

21 SEC. 206. TRANSITION SAFE HARBOR AND ADMINISTRA22 TIVE REMEDIES. 

23 (a) SAFE HARBOR.—No person shall be deemed to 

24 be in violation of this Act for engaging in interstate com25 merce in cannabis products or designated State medical 


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1 cannabis products, possessing cannabis products or des2 ignated State medical cannabis products, producing or 

3 manufacturing cannabis products or designated State 

4 medical cannabis products, or farming raw cannabis, until 

5 after the Secretary of the Treasury promulgates final reg6 ulations in accordance with this Act. Nothing in this sec7 tion shall be construed to impact in any respect obligations 

8 of any person to comply with otherwise applicable can9 nabis laws of the State, Territory, or Possession of the 

10 United States in which they are doing business before the 

11 effective date of this Act. 

12 (b) PRIVATE RIGHT OF ACTION.—Any State-licensed 

13 cannabis business or adversely affected person shall have 

14 private right of action under the Administrative Procedure 

15 Act (5 U.S.C. 500 et seq.) and the Mandamus Act (28 

16 U.S.C. 1361) to compel any officer, employee or agency 

17 of the United States to promulgate regulations required 

18 under this Act that are not promulgated within the time 

19 frames set forth herein or to enjoin agency action. The 

20 exclusive venue for bringing any such action shall be the 

21 District Court for the District of Columbia. Upon dem22 onstration of undue delay or failure to adhere strictly to 

23 statutory deadlines, equitable relief in the form of a writ 

24 of mandamus compelling action shall issue, among such 

25 other relief as the court may see fit. 


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1 (c) The term ‘‘State’’ as used in this section 206 in2 cludes the District of Columbia, Puerto Rico, and any 

3 commonwealth, territory, enclave, or Indian Tribe of the 

4 United States. 

5 SEC. 207. UNFAIR ADVERTISING PRACTICES AND 21 AGE 

6 LIMIT. 

7 (a) IN GENERAL.—It shall be unlawful for any per8 son engaged in the business of importing marijuana into 

9 the United States, or cultivating, producing, manufac10 turing, packaging, or warehousing marijuana, or pur11 chasing marijuana for resale at wholesale, directly or indi12 rectly or through an affiliate, to publish or disseminate 

13 or cause to be published or disseminated by radio broad14 cast, or in any newspaper, periodical or other publication 

15 or by any sign or outdoor advertisement or any other 

16 printed or graphic matter, any advertisement of mari17 juana, if such advertisement is in, or is calculated to in18 duce sales in, interstate or foreign commerce, or is dis19 seminated by mail, unless such advertisement is in con20 formity with such regulations, to be prescribed by the Sec21 retary of the Treasury, or the Secretary’s delegate (re22 ferred to in this section as the ‘‘Secretary’’), as will— 

23 (1) prevent deception of the consumer with re24 spect to the products advertised and as will prohibit, 

25 irrespective of falsity, such statements relating to 


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1 manufacturing processes, analyses, guaranties, and 

2 scientific or irrelevant matters as the Secretary finds 

3 to be likely to mislead the consumer; 

4 (2) provide the consumer with adequate infor5 mation as to the identity and quality of the products 

6 advertised, the characteristics thereof, and the per7 son responsible for the advertisement; 

8 (3) prohibit statements that are disparaging of 

9 a competitor’s products or are false, misleading, ob10 scene, or indecent; and 

11 (4) prevent statements inconsistent with any 

12 statement on the labeling of the products advertised. 

13 (b) NONAPPLICATION TO PUBLISHERS AND BROAD14 CASTERS.—The prohibitions of this section and regula15 tions thereunder shall not apply to the publisher of any 

16 newspaper, periodical, or other publication, or radio broad17 caster, or provider of an interactive computer service with18 in the meaning of the Communications Decency Act (47 

19 U.S.C. 230 et seq.), unless such publisher or radio broad20 caster is engaged in the business of importing marijuana 

21 into the United States, or cultivating, producing, manufac22 turing, packaging, or warehousing marijuana, or pur23 chasing marijuana for resale at wholesale, directly or indi24 rectly or through an affiliate. 


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1 (c) PROTECT KIDS.—Not later than 30 days after the 

2 date of enactment of this Act, the Secretary of the Treas3 ury shall promulgate regulations that— 

4 (1) require restrictions on the advertising and 

5 promotion of products related to cannabis, if the 

6 Secretary determines that such regulation would be 

7 appropriate for the protection of the public health, 

8 taking into account— 

9 (A) the risks and benefits to the popu10 lation of individuals age 21 and under, includ11 ing users and nonusers of cannabis products; 

12 (B) the increased or decreased likelihood 

13 that existing users of cannabis products who 

14 are age 18 and under will stop using such prod15 ucts; and 

16 (C) the increased or decreased likelihood 

17 that individuals age 21 and under who do not 

18 use cannabis products will start using such 

19 products; and 

20 (2) impose restrictions on the advertising and 

21 promotion of products related to cannabis consistent 

22 with and to the full extent permitted by the First 

23 Amendment to the Constitution of the United 

24 States. 


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1 (d) ESTABLISHMENT OF FEDERAL MINIMUM CAN2 NABIS AGE.—Chapter 1 of title 23 of the United States 

3 Code, is amended by adding at the end the following (and 

4 conforming the table of sections accordingly): 

5 ‘‘SEC. 191. WITHHOLDING OF FUNDS FOR NONCOMPLIANCE. 

6 ‘‘(a) IN GENERAL.—The Secretary of Transportation 

7 shall withhold 8 per centum of the amount required to 

8 be apportioned to any State under each of sections 

9 104(b)(1), 104(b)(3), and 104(b)(4) of title 23 of the 

10 United States Code on the first day of each fiscal year 

11 after the second fiscal year beginning after September 30, 

12 2019, in which the purchase or public possession in such 

13 State of cannabis by a person who is less than twenty14 one years of age is lawful. 

15 ‘‘(b) EFFECT OF WITHHOLDING OF FUNDS.—No 

16 funds withheld under this section from apportionment to 

17 any State after September 30, 2019, shall be available for 

18 apportionment to that State. 

19 ‘‘(c) CANNABIS DEFINED.—As used in this section, 

20 the term ‘cannabis’ means the same as ‘marihuana’ as de21 fined in section 102(16) of the Controlled Substances Act 

22 (21 U.S.C. 802(16)). 

23 ‘‘(d) MEDICAL EXCEPTION.—The Secretary shall not 

24 apply any withholding under this section to States that 

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1 nabis products, within the meaning of part J of sub2 chapter V of chapter 9 of title 21, United States Code, 

3 (the Federal Food, Drug, and Cosmetic Act), by persons 

4 under the age of 21 on the recommendation or prescrip5 tion of a qualified medical professional consistent with 

6 State law.’’. 

7 SEC. 208. FEDERAL CANNABIS ADMINISTRATION UNDER 

8 THE FEDERAL ALCOHOL ADMINISTRATION 

9 ACT. 

10 The Federal Alcohol Administration Act (27 U.S.C. 

11 201 et seq.) is amended by adding at the end the fol12 lowing: 

13 ‘‘TITLE III—CANNABIS 

‘‘Sec. 301. Unlawful business without cannabis permit. 

‘‘Sec. 302. Procedure for issuance of cannabis permit. 

‘‘Sec. 303. Definitions. 

14 ‘‘SEC. 301. UNLAWFUL BUSINESS WITHOUT CANNABIS PER15 MIT. 

16 ‘‘In order to regulate effectively interstate and for17 eign commerce in cannabis and to protect the revenue and 

18 enforce the postal laws with respect to cannabis: 

19 ‘‘(a) IN GENERAL.—Notwithstanding section 205 of 

20 the States Reform Act, every person, before commencing 

21 commerce in cannabis, and at such other time as the Sec22 retary shall by regulation prescribe, shall make application 

23 for the permit provided for in section 302. The application 

24 shall be in such form as the Secretary shall prescribe and 


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1 shall set forth, truthfully and accurately, the information 

2 called for on the form. 

3 ‘‘(b) IMPORT.—It shall be unlawful, except pursuant 

4 to a permit issued under this title by the Secretary of the 

5 Treasury (hereinafter in this title referred to as the ‘Sec6 retary’)— 

7 ‘‘(1) to engage in the business of importing 

8 cannabis into the United States; or 

9 ‘‘(2) for any person so engaged to sell, offer or 

10 deliver for sale, contract to sell, or ship, in interstate 

11 or foreign commerce, directly or indirectly or 

12 through an affiliate, cannabis so imported. 

13 ‘‘(c) MANUFACTURE AND SALE.—It shall be unlaw14 ful, except pursuant to a permit issued under this title 

15 by the Secretary— 

16 ‘‘(1) to engage in the business of producing, 

17 manufacturing, packaging, or warehousing cannabis; 

18 or 

19 ‘‘(2) for any person so engaged to sell, offer or 

20 deliver for sale, contract to sell, or ship, in interstate 

21 or foreign commerce, directly or indirectly or 

22 through an affiliate, cannabis so produced, manufac23 tured, packaged, or warehoused. 

24 ‘‘(d) RESALE.—It shall be unlawful, except pursuant 

25 to a permit issued under this title by the Secretary— 


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1 ‘‘(1) to engage in the business of purchasing 

2 cannabis for resale at wholesale; or 

3 ‘‘(2) for any person so engaged to receive or to 

4 sell, offer or deliver for sale, contract to sell, or ship, 

5 in interstate or foreign commerce, directly or indi6 rectly or through an affiliate, cannabis so purchased. 

7 ‘‘(e) REMEDIES FOR VIOLATIONS.— 

8 ‘‘(1) CIVIL FINE.— 

9 ‘‘(A) GENERALLY.—Whoever violates this 

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

11 ‘‘(B) SETTLEMENT IN COMPROMISE.—The 

12 Secretary may decide not to refer a violation of 

13 this section to the Attorney General for pros14 ecution but instead to collect a payment from 

15 the violator of no more than $500 for that vio16 lation. 

17 ‘‘(2) CIVIL ACTION FOR RELIEF.—The Attorney 

18 General may, in a civil action, obtain appropriate re19 lief to prevent and restrain a violation of this title. 

20 ‘‘SEC. 302. PROCEDURE FOR ISSUANCE OF CANNABIS PER21 MIT. 

22 ‘‘(a) WHO ENTITLED TO PERMIT.— 

23 ‘‘(1) GENERALLY.—The Secretary shall issue a 

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1 tion 301, and the applicant shall be entitled to such, 

2 unless the Secretary finds that— 

3 ‘‘(A) the applicant (or if the applicant is a 

4 corporation, any of its officers, directors, or 

5 principal stockholders) has, prior to the date of 

6 application, been convicted of a disqualifying of7 fense; 

8 ‘‘(B) the applicant is, by reason of busi9 ness experience, financial standing, or trade 

10 connections, not likely to commence operations 

11 within a reasonable period or to maintain such 

12 operations in conformity with Federal law; 

13 ‘‘(C) that the operations proposed to be 

14 conducted by the applicant are in violation of 

15 the law of the State in which they are to be 

16 conducted; or 

17 ‘‘(D) the applicant has failed to disclose 

18 any material information required or made any 

19 material false statement in the application 

20 therefor. 

21 ‘‘(2) DISQUALIFYING OFFENSES.—For the pur22 poses of paragraph (1): 

23 ‘‘(A) GENERALLY.—Except as provided for 

24 in subparagraph (B), a disqualifying offense is 


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1 an offense related to the production, consump2 tion, or sale of marijuana that is— 

3 ‘‘(i) a felony under Federal or State 

4 law, if the conviction occurred not later 

5 than 3 years before the date of application; 

6 or 

7 ‘‘(ii) a misdemeanor under Federal or 

8 State law, if the conviction occurred not 

9 later than 1 year before the application. 

10 ‘‘(B) EXCLUDED OFFENSES.—A disquali11 fying offense does not include a Federal or 

12 State offense based on conduct that— 

13 ‘‘(i) was legal under State law in the 

14 State when and where the conduct took 

15 place; or 

16 ‘‘(ii) is as of the date of the applica17 tion, no longer an offense in that State. 

18 ‘‘(C) STATE SECOND CHANCES PRACTICES

19 SAFE HARBOR.—A State has examined the of20 fense or offenses in question, or is in the proc21 ess of examining, for the issuance of a State li22 cense to engage in cannabis commerce, and has 

23 awarded the applicant a State license to engage 

24 in cannabis commerce. 


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1 ‘‘(3) GRANDFATHERING AND PROSPECTIVE

2 COMITY FOR STATE LICENSURE.— 

3 ‘‘(A) GRANDFATHERING.—Any person li4 censed by a State cannabis regulatory authority 

5 before the passage of this Act to produce, ware6 house, distribute or otherwise transport can7 nabis products, and in good standing with that 

8 regulatory authority, shall be issued necessary 

9 Federal permits, licenses, or the like to engage 

10 in federally regulated commerce upon applica11 tion for the same to the Alcohol and Tobacco 

12 Tax and Trade Bureau of the Department of 

13 the Treasury. 

14 ‘‘(B) PROSPECTIVE FEDERAL-STATE PER15 MIT COMITY.—Any person licensed by a State 

16 cannabis regulatory authority after the passage 

17 of this Act to produce, warehouse, distribute or 

18 otherwise transport cannabis products, and in 

19 good standing with that regulatory authority 

20 shall be issued necessary Federal permits to en21 gage in federally regulated commerce upon ap22 plication for the same. 

23 ‘‘(C) RULE OF CONSTRUCTION.—Nothing 

24 in this Act, or the lawful exercise of rights or 

25 privileges granted herein, shall be construed to 


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1 infringe upon or prejudice the ability of a State2 licensed cannabis business to apply for a permit 

3 to engage in interstate or foreign commerce. 

4 ‘‘(b) REFUSAL OF PERMIT; HEARING.—If upon ex5 amination of any application for a permit the Secretary 

6 has reason to believe that the applicant is not entitled to 

7 such permit, the Secretary shall so notify the applicant 

8 and, upon request by the applicant, afford the applicant 

9 due notice and opportunity for hearing on the application 

10 within the meaning of the Administrative Procedure Act 

11 (5 U.S.C. 500 et seq.). If the Secretary, after affording 

12 such notice and opportunity for hearing, still finds that 

13 the applicant is not entitled to a permit hereunder, the 

14 Secretary shall by order deny the application stating the 

15 findings that are the basis for the order. The provisions 

16 of 27 CFR part 200—Rules of Practice in Permit Pro17 ceedings, as amended from time to time, shall be applica18 ble to the jurisdiction, powers, and duties of the Secretary 

19 of the Treasury under this section. 

20 ‘‘(c) FORM OF APPLICATION.— 

21 ‘‘(1) GENERALLY.—The Secretary shall— 

22 ‘‘(A) prescribe within 60 days of the effec23 tive date of this Act, and consistent with the 

24 Paperwork Reduction Act, the manner and 

25 form of all applications for permits under this 


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1 title (including the facts to be set forth there2 in); 

3 ‘‘(B) prescribe the form of all permits; and 

4 ‘‘(C) specify in any permit the authority 

5 conferred by the permit and the conditions of 

6 that permit in accordance with this title. 

7 ‘‘(2) SEPARATE TYPES OF APPLICATIONS AND

8 PERMITS.—To the extent deemed necessary by the 

9 Secretary for the efficient administration of this 

10 title, the Secretary may require separate applications 

11 and permits with respect to the various classes of 

12 cannabis, and with respect to the various classes of 

13 persons entitled to permits under this title. 

14 ‘‘(3) DISCLAIMER.—The issuance of a permit 

15 under this title does not deprive the United States 

16 of any remedy for a violation of law. 

17 ‘‘(d) CONDITIONS.—A permit under this title shall be 

18 conditioned upon the following: 

19 ‘‘(1) COMPLIANCE.—Compliance with all appli20 cable Federal laws relating to production, sale and 

21 consumption of cannabis, as well as compliance with 

22 all applicable State laws relating to said activities in 

23 the State in which the permit applicant resides and 

24 does business. 


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1 ‘‘(2) USER FEE.—Payment to the Secretary of 

2 a reasonable permit fee in an amount determined by 

3 the Secretary to be sufficient collectively over time 

4 to offset the cost of implementing and overseeing all 

5 aspects of cannabis regulation by the Federal Gov6 ernment. For the first 3 years following promulga7 tion of regulations by the Secretary under section 

8 204 of the States Reform Act, in order to ensure 

9 small business access, such fee may not exceed 

10 $10,000 per permit. 

11 ‘‘(3) SBA FEE WAIVER.—The Secretary shall 

12 waive the user fee for an applicant that is a small 

13 business or a socially and economically disadvan14 taged business that is a business within the meaning 

15 of the Small Business Act of 1953 (15 U.S.C. chap16 ter 14A), as interpreted by the Administrator of the 

17 Small Business Administration. 

18 ‘‘(e) REVOCATION, SUSPENSION, AND ANNUL19 MENT.— 

20 ‘‘(1) GENERALLY.—After due notice and oppor21 tunity for hearing consistent with the Administrative 

22 Procedure Act (5 U.S.C. 500 et seq.), the Secretary 

23 may order a permit under this title— 

24 ‘‘(A) revoked or suspended for such period 

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1 retary finds that the permittee has willfully vio2 lated any of the conditions of the permit, but 

3 for a first violation of the conditions the permit 

4 shall be subject to suspension only; 

5 ‘‘(B) be revoked if the Secretary finds that 

6 the permittee has not engaged in the operations 

7 authorized by the permit for a period of more 

8 than 2 years; or 

9 ‘‘(C) be annulled if the Secretary finds 

10 that the permit was procured through fraud, or 

11 misrepresentation, or concealment of material 

12 fact. 

13 ‘‘(2) ORDER TO STATE BASIS FOR ORDER.— 

14 The order shall state the findings that are the basis 

15 for the order. 

16 ‘‘(f) SERVICE OF ORDERS.—Each order of the Sec17 retary with respect to any denial of application, suspen18 sion, revocation, annulment, or other proceedings, shall be 

19 served— 

20 ‘‘(1) in person by any officer or employee of the 

21 Secretary designated by the Secretary or any inter22 nal revenue or customs officer authorized by the 

23 Secretary for the purpose; or 


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1 ‘‘(2) by mailing the order by registered mail, 

2 addressed to the applicant or respondent at their 

3 last known address in the records of the Secretary. 

4 ‘‘(g) PROCEEDINGS.—The provisions of 27 CFR part 

5 200—Rules of Practice in Permit Proceedings, as amend6 ed from time to time, shall be applicable to the jurisdic7 tion, powers, and duties of the Secretary of the Treasury 

8 under this section. 

9 ‘‘(h) DURATION.— 

10 ‘‘(1) GENERAL RULE.—Except as otherwise 

11 provided in this subsection, a permit issued under 

12 this title shall continue in effect until suspended, re13 voked, or annulled as provided in this title, or volun14 tarily surrendered. 

15 ‘‘(2) EFFECT OF TRANSFER.—If operations 

16 under a permit issued under this title are trans17 ferred, the permit automatically terminates 30 days 

18 after the date of that transfer, unless an application 

19 is made by the transferee before the end of that pe20 riod for a permit under this title for those oper21 ations. If such an application is made, the out22 standing permit shall continue in effect until such 

23 application is finally acted on by the Secretary. 

24 ‘‘(3) DEFINITION OF TRANSFER.—For the pur25 poses of this section, the term ‘transfer’ means any 


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1 change of ownership or control, whether voluntary or 

2 by operation of law. 

3 ‘‘(i) APPEAL AND JUDICIAL REVIEW.— 

4 ‘‘(1) IN GENERAL.—An appeal may be taken by 

5 the permittee or applicant for a permit from any 

6 order of the Secretary of the Treasury denying an 

7 application for, or suspending, revoking, or annul8 ling, a basic permit. Such appeal shall be taken by 

9 filing, in the court of appeals of the United States 

10 within any circuit wherein such person resides or 

11 has their principal place of business, or in the 

12 United States Court of Appeals for the District of 

13 Columbia, within 60 days after the entry of such 

14 order, a written petition praying that the order of 

15 the Secretary be modified or set aside in whole or 

16 in part. A copy of such petition shall be forthwith 

17 transmitted by the clerk of the court to the Sec18 retary, or any officer designated by the Secretary for 

19 that purpose, and thereupon the Secretary shall file 

20 in the court the record upon which the order com21 plained of was entered, as provided in section 2112 

22 of title 28. Upon the filing of such petition such 

23 court shall have exclusive jurisdiction to affirm, 

24 modify, or set aside such order, in whole or in part. 

25 No objection to the order of the Secretary shall be 


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1 considered by the court unless such objection shall 

2 have been urged before the Secretary or unless there 

3 were reasonable grounds for failure so to do. The 

4 finding of the Secretary as to the facts, if supported 

5 by substantial evidence, shall be conclusive. If any 

6 party shall apply to the court for leave to adduce ad7 ditional evidence, and shall show to the satisfaction 

8 of the court that such additional evidence is material 

9 and that there were reasonable grounds for failure 

10 to adduce such evidence in the proceeding before the 

11 Secretary, the court may order such additional evi12 dence to be taken before the Secretary and to be ad13 duced upon the hearing in such manner and upon 

14 such terms and conditions as to the court may seem 

15 proper. The Secretary may modify their findings as 

16 to the facts by reason of the additional evidence so 

17 taken, and they shall file with the court such modi18 fied or new findings, which, if supported by substan19 tial evidence, shall be conclusive, and their rec20 ommendation, if any, for the modification or setting 

21 aside of the original order. The judgment and decree 

22 of the court affirming, modifying, or setting aside, in 

23 whole or in part, any such order of the Secretary 

24 shall be final, subject to review by the Supreme 

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1 cation as provided in section 1254 of title 28. The 

2 commencement of proceedings under this subsection 

3 shall, unless specifically ordered by the court to the 

4 contrary, operate as a stay of the Secretary’s order. 

5 These proceedings shall be subject to the require6 ments of the Administrative Procedure Act (5 

7 U.S.C. 500 et seq.). Should the permitee substan8 tially prevail, such permitee shall be entitled to at9 torneys’ fees and costs associated with compelling a 

10 decision under this section. 

11 ‘‘(2) ADDITIONAL APPLICANT MANDAMUS REM12 EDY.—Should the Secretary fail to make a permit 

13 application decision within ninety days of submission 

14 of a completed application, an applicant shall have 

15 the right to compel a decision and issuance of a per16 mit pursuant to section 1361 of title 28, United 

17 States Code, in any United States district court 

18 where the applicant resides or does business or in 

19 the United States District Court for the District of 

20 Columbia. Should the applicant substantially prevail, 

21 such applicant shall be entitled to attorneys’ fees 

22 and costs associated with compelling a decision 

23 under this section. Such mandamus remedy shall be 

24 in addition to any other remedies available to appli25 cants under the Administrative Procedure Act. 


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1 ‘‘(j) STATUTE OF LIMITATIONS.— 

2 ‘‘(1) IN GENERAL.—No proceeding for the sus3 pension or revocation of a permit for violation of any 

4 condition thereof relating to compliance with Federal 

5 law shall be instituted by the Secretary more than 

6 18 months after conviction of the violation of Fed7 eral law, or, if no conviction has been had, more 

8 than 3 years after the violation occurred. 

9 ‘‘(2) COMPROMISE.—No permit shall be sus10 pended or revoked for a violation of any such condi11 tion thereof if the alleged violation of Federal law 

12 has been compromised by any officer of the Govern13 ment authorized to compromise such violation. 

14 ‘‘(k) PERMIT APPLICATION.— 

15 ‘‘(1) IN GENERAL.—Applications for permits to 

16 engage in any of the operations set forth in this sec17 tion must be made on the required form. The appli18 cation will include all data, written statements, affi19 davits, documents, or other evidence submitted in 

20 support of the application, or upon a hearing. 

21 ‘‘(2) CONFIDENTIALITY.—All financial informa22 tion submitted by a permit applicant in connection 

23 with an application shall be deemed confidential 

24 business information and exempt from disclosure 

25 under the Freedom of Information Act. 


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1 ‘‘(3) INCOMPLETE OR INCORRECTLY EXECUTED

2 APPLICATIONS.—Incomplete or incorrectly executed 

3 applications will not be acted upon, but the applicant 

4 shall be entitled to file a new application without 

5 prejudice, or to complete the application already 

6 filed. The Secretary shall notify the applicant of 

7 such defects in the application within 90 days of ap8 plication or within 10 days of the discovery of the 

9 defect after the first 30 days following the filing of 

10 the application. 

11 ‘‘(4) CHANGE IN OWNERSHIP, MANAGEMENT, 

12 OR CONTROL OF THE APPLICANT.—In the event of 

13 any change in the ownership, management, or con14 trol of the applicant (in case of a corporation, any 

15 change in the officers, directors, or persons holding 

16 more than 10 percent of the corporate stock), after 

17 the date of filing of any application for a permit and 

18 prior to final action on such application, the appli19 cant shall notify the appropriate officer immediately 

20 of such change. 

21 ‘‘(5) INDIVIDUAL PLANT OR PREMISES.—An ap22 plication for a basic permit must be filed, and per23 mit issued, to cover each individual plant or prem24 ises where any of the businesses specified in this sec25 tion is engaged in. 


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1 ‘‘(6) DEADLINE.—Within 90 days of receipt of 

2 an application, the Secretary or their designee must 

3 notify the applicant whether the application has been 

4 approved or denied. This 90-day period may be ex5 tended once, by an additional 90 days, if the Sec6 retary or their designee finds that unusual cir7 cumstances require additional time to consider the 

8 issues presented by an application. If the Secretary 

9 or the appropriate designee extends the period, he or 

10 she must notify the applicant by letter, along with 

11 a brief explanation of the unusual circumstances 

12 causing the time period for consideration of the ap13 plication to be extended. If the applicant receives no 

14 decision from the Secretary or their designee within 

15 the time periods set forth in this paragraph, the ap16 plicant may file a mandamus action as provided for 

17 in this section. 

18 ‘‘SEC. 303. DEFINITIONS. 

19 ‘‘In this title— 

20 ‘‘(1) the term ‘marijuana’ or ‘cannabis’ has the 

21 same meaning given the term ‘marihuana’ in section 

22 102 of the Controlled Substances Act (21 U.S.C. 

23 121); and 

24 ‘‘(2) the term ‘State’ includes the District of 

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1 ritory, enclave, Indian Tribe, or possession of the 

2 United States.’’. 

3 TITLE III—DESIGNATED STATE 

4 MEDICAL CANNABIS PROD5 UCT SAFETY ACT 

6 SEC. 301. GRANDFATHERING OF STATE MEDICAL CANNABIS 

7 PRODUCTS INTO INTERSTATE COMMERCE. 

8 Subchapter V of chapter 9 of title 21 of the United 

9 States Code (the Federal Food, Drug, and Cosmetic Act) 

10 is amended by adding at the end the following new part: 

11 ‘‘PART J—DESIGNATED STATE MEDICAL 

12 CANNABIS PRODUCTS 

‘‘Sec. 360ggg. Definitions. 

‘‘Sec. 360ggg–1. Regulation of medical cannabis products. 

‘‘Sec. 360ggg–2. Cannabis-infused foods, beverages, and supplements. 

‘‘Sec. 360ggg–3. Cannabis cosmetics. 

‘‘Sec. 360ggg–4. Liability and method of payment. 

‘‘Sec. 360ggg–5. Private right of action and administrative remedy. 

13 ‘‘SEC. 360ggg. DEFINITIONS. 

14 ‘‘In this part: 

15 ‘‘(1) The term ‘designated State medical can16 nabis product’— 

17 ‘‘(A) means an article that is produced by 

18 a State and federally licensed or permitted med19 ical cannabis business, pursuant to a State 

20 medical cannabis program and contains ‘mari21 huana’, as defined in section 102(16) of the 

22 Controlled Substances Act; 


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1 ‘‘(B) means any other article that contains 

2 either ‘marihuana’, as defined in section 102 of 

3 the Controlled Substances Act, deemed appro4 priate by the Secretary, after taking into ac5 count any investigational new drug application 

6 or investigational new animal drug application 

7 for the same medical cannabis product sub8 mitted in accordance with regulations applicable 

9 to such applications in title 21 of the Code of 

10 Federal Regulations, unless any period of exclu11 sivity for a new drug under section 

12 355(c)(3)(E)(ii) of this title or section 

13 355(j)(5)(F)(ii) of this title, or the extension of 

14 any such period under section 355a of this title, 

15 or any period of exclusivity for a new animal 

16 drug under section 360b(c)(2)(F) of this title, 

17 applicable to such medical cannabis product has 

18 not expired; 

19 ‘‘(C) means any article that contains either 

20 ‘marihuana’, as defined in section 102(16) of 

21 the Controlled Substances Act, that also meets 

22 the standards set forth in an official compen23 dium; and 

24 ‘‘(D) does not mean articles or cannabis 

25 products produced and intended for nonmedical 


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1 use, such as those regulated under title III of 

2 the Federal Alcohol Administration Act (27 

3 U.S.C. 201 et seq.). 

4 ‘‘(2) The term ‘State’ includes the District of 

5 Columbia, Puerto Rico, and any commonwealth, ter6 ritory, enclave, Indian Tribe, or possession of the 

7 United States. 

8 ‘‘SEC. 360ggg–1. REGULATION OF MEDICAL CANNABIS 

9 PRODUCTS. 

10 ‘‘(a) MEDICAL CANNABIS REGULATION AND AU11 THORITY.—The Food and Drug Administration shall have 

12 jurisdiction over the regulation of designated State med13 ical cannabis products described herein. 

14 ‘‘(b) CERTIFICATION OF DESIGNATED STATE MED15 ICAL CANNABIS PRODUCTS.— 

16 ‘‘(1) SUBMISSION.—Beginning 210 days after 

17 the effective date of this Act, any person who seeks 

18 to initially introduce or deliver for introduction a 

19 designated State medical cannabis product into 

20 interstate commerce may file with the Secretary a 

21 request for certification as a designated State med22 ical cannabis product. Any such request shall con23 tain the following information: 

24 ‘‘(A) A description of the designated State 

25 medical cannabis product. 


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1 ‘‘(B) The name and address of the spon2 sor. 

3 ‘‘(C) The name and address of the facility 

4 or facilities where the designated State medical 

5 cannabis product is or will be cultivated and 

6 manufactured. 

7 ‘‘(D) Any other information deemed appro8 priate by the Secretary to determine whether 

9 the designated State medical cannabis product 

10 is in fact a designated State medical cannabis 

11 product. 

12 ‘‘(2) GRANT OF CERTIFICATION.—The certifi13 cation requested under paragraph (1) is deemed to 

14 be granted unless, within 30 days of the filing of 

15 such request, the Secretary finds that— 

16 ‘‘(A) the designated State medical can17 nabis product subject to the certification is not 

18 in fact a designated State medical cannabis 

19 product; 

20 ‘‘(B) the request does not contain the in21 formation required under paragraph (1) or oth22 erwise lacks sufficient information to permit the 

23 Secretary to determine that the designated 

24 State medical cannabis product is in fact a des25 ignated State medical cannabis product; or 


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1 ‘‘(C) denying the request is necessary to 

2 protect the public health. 

3 ‘‘(3) EFFECT OF CERTIFICATION.— 

4 ‘‘(A) IN GENERAL.— 

5 ‘‘(i) APPROVED USES.—A designated 

6 State medical cannabis product for which a 

7 certification is granted under paragraph 

8 (2) is deemed, alone or in combination, as 

9 medically appropriate, with another des10 ignated State medical cannabis product or 

11 products for which a certification or certifi12 cations have been granted, to be sold in 

13 interstate commerce as a non-drug des14 ignated State medical cannabis product, 

15 for the following indications for use: 

16 ‘‘(I) The treatment of arthritis. 

17 ‘‘(II) The treatment of chemo18 therapy-induced and non-chemo19 therapy-induced nausea and vomiting. 

20 ‘‘(III) The stimulation of appe21 tite. 

22 ‘‘(IV) The treatment of the 

23 symptoms of patients with HIV/AIDS 

24 or for anorexia associated with AIDS. 


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1 ‘‘(V) The treatment of temporary 

2 or chronic pain and analgesia. 

3 ‘‘(VI) The treatment of muscle 

4 spasms. 

5 ‘‘(VII) The treatment of insom6 nia and restlessness. 

7 ‘‘(VIII) The treatment of post8 traumatic stress disorder. 

9 ‘‘(IX) The treatment of chronic 

10 pain due to sickle cell disease. 

11 ‘‘(X) Any other indication for use 

12 consistent with State medical can13 nabis law and medical cannabis label14 ing practice in the State in which the 

15 product is to be sold to the end con16 sumer. 

17 ‘‘(XI) Any other indication for 

18 use for a designated State medical 

19 cannabis product or combination of 

20 designated State medical cannabis 

21 products deemed appropriate by the 

22 Secretary, unless any period of exclu23 sivity for a new drug under clause (iii) 

24 or (iv) of section 355(c)(3)(E) of this 

25 title, clause (iii) or (iv) of section 


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1 355(j)(5)(F) of this title, or section 

2 360cc of this title, or the extension of 

3 any such period under section 355a of 

4 this title, applicable to such indication 

5 for use for such medical cannabis 

6 product or combination of products 

7 has not expired. 

8 ‘‘(ii) LABELING.—The requirements 

9 of sections 353(b)(4) and 352(f) of this 

10 title are deemed to have been met for a 

11 designated State medical cannabis product 

12 if the labeling on the final use container 

13 for such medical cannabis product bears— 

14 ‘‘(I) the information required by 

15 section 353(b)(4) of this title; 

16 ‘‘(II) a warning statement con17 cerning the use of the medical can18 nabis products as determined by the 

19 Secretary by regulation; and 

20 ‘‘(III) appropriate directions and 

21 warnings concerning storage and han22 dling. 

23 ‘‘(B) INAPPLICABILITY OF EXCLUSIVITY

24 PROVISIONS.— 


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1 ‘‘(i) No exclusivity for a certified med2 ical cannabis product. No designated State 

3 medical cannabis product deemed under 

4 subparagraph (A)(i) to have in effect an 

5 approved application is eligible for any pe6 riod of exclusivity for a new drug under 

7 section 355(c), 355(j), or 360cc of this 

8 title, or the extension of any such period 

9 under section 355a of this title, on the 

10 basis of such deemed approval. 

11 ‘‘(ii) EFFECT ON CERTIFICATION.— 

12 No period of exclusivity under section 

13 355(c), 355(j), or section 360cc of this 

14 title, or the extension of any such period 

15 under section 355a of this title, with re16 spect to an application for a drug product, 

17 shall prohibit, limit, or otherwise affect the 

18 submission, grant, or effect of a certifi19 cation under this section, except as pro20 vided in subsection (a)(3)(A)(i)(VIII) and 

21 section 360ddd(1)(H) of this title. 

22 ‘‘(4) WITHDRAWAL, SUSPENSION, OR REVOCA23 TION OF APPROVAL.— 

24 ‘‘(A) WITHDRAWAL, SUSPENSION OF AP25 PROVAL.—Nothing in this part limits the SecVerDate Sep 11 2014 23:29 Nov 07, 2023 Jkt 049200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\H6028.IH H6028

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1 retary’s authority to withdraw or suspend ap2 proval of a drug product, including a designated 

3 State medical cannabis product deemed under 

4 this section to have in effect an approved appli5 cation under section 355 or section 360b of this 

6 title. 

7 ‘‘(B) REVOCATION OF CERTIFICATION.— 

8 The Secretary may revoke the grant of a certifi9 cation under paragraph (2) if the Secretary de10 termines that the request for certification con11 tains any material omission or falsification. 

12 ‘‘(5) PRESCRIPTION OR RECOMMENDATION RE13 QUIREMENT FOR DESIGNATED STATE MEDICAL CAN14 NABIS PRODUCTS.— 

15 ‘‘(A) IN GENERAL.—A designated State 

16 medical cannabis product is not approved for 

17 use without a prescription by a qualified med18 ical professional or a recommendation by a 

19 qualified medical professional as defined by the 

20 law of the State in which the qualified medical 

21 professional is providing said prescription or 

22 recommendation. 

23 ‘‘(B) LABELING.—For medical cannabis 

24 products provided pursuant to subparagraph 


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1 (A), the Secretary shall issue labeling require2 ments in accord with section 7 of this Act. 

3 ‘‘(6) NO DRUG PRECLUSION.—Notwithstanding 

4 any other law, section 301(ll) of the Federal Food, 

5 Drug, and Cosmetic Act, the ‘drug preclusion’ rule, 

6 shall not apply to ‘marihuana’, as defined in section 

7 102(16) of the Controlled Substances Act. Notwith8 standing any other Federal law or provision of the 

9 Federal Food, Drug, and Cosmetic Act, the Food 

10 and Drug Administration shall treat cannabis with11 out respect to the doctrine of drug preclusion. Noth12 ing in this provision is meant to diminish or other13 wise affect the ability of the Food and Drug Admin14 istration to regulate drug products (as defined in 

15 section 201(g) of the Federal Food, Drug, and Cos16 metic Act), including those containing ‘marihuana’, 

17 (as defined in section 102(16) of the Controlled Sub18 stances Act) that are intended and marketed for use 

19 as a ‘drug’ rather than a ‘designated State medical 

20 cannabis product’. 

21 ‘‘(7) RULEMAKING AUTHORITY AND

22 TIMELINE.—The Commissioner of the Food and 

23 Drug Administration, or their designee, shall imple24 ment the Act and enter formal rulemaking, con25 sistent with the Administrative Procedure Act (5 


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1 U.S.C. 500 et seq.), according to the following 

2 schedule: 

3 ‘‘(A) Not later than 30 days after the date 

4 of enactment of this Act, publish in the Federal 

5 Register a Notice of Inquiry and Notice of Pro6 posed Rulemaking for implementation of the 

7 Act, requesting public comment. 

8 ‘‘(B) Not later than 60 days after the date 

9 of enactment of this Act— 

10 ‘‘(i) issue an interim final rule for im11 plementation and labeling regulations for 

12 certification of designated State products, 

13 and dietary supplements, food additives, 

14 cosmetics, and topicals containing can15 nabis; and 

16 ‘‘(ii) publish a draft form of the Re17 quest for Certification form for designated 

18 State medical products. 

19 ‘‘(C) Not later than 150 days after the 

20 date of enactment of this Act, issue a final rule 

21 for implementation and labeling regulations for 

22 certification of designated State products, and 

23 dietary supplements, food additives, cosmetics, 

24 and topicals containing cannabis. The Commis25 sioner or their designee may begin receiving reVerDate Sep 11 2014 23:29 Nov 07, 2023 Jkt 049200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\H6028.IH H6028

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1 quests for Certification of designated State 

2 medical cannabis products, and applications, 

3 notifications, and the like, for dietary supple4 ments, food additives, cosmetics, and topicals 

5 containing cannabis. 

6 ‘‘(D) Not later than 180 days after the 

7 date of enactment of this Act, the Commis8 sioner or their designee shall begin receiving 

9 Requests for Certification of designated State 

10 medical cannabis products, and applications, 

11 notifications, and the like, for dietary supple12 ments, food additives, cosmetics, and topicals 

13 containing cannabis. 

14 ‘‘(E) The major rule effective delay period 

15 of 60 days shall apply to the Final Rule de16 scribed in subparagraph (C), such that the 

17 Final Rule described in subparagraph (C) is ef18 fective 210 days after the date of enactment of 

19 this Act. 

20 ‘‘SEC. 360ggg–2. CANNABIS-INFUSED FOODS, BEVERAGES, 

21 AND SUPPLEMENTS. 

22 ‘‘(a) NO SUPPLEMENT/ADDITIVE PRECLUSION.— 

23 Notwithstanding any other law, section 201(s)(6) of the 

24 Federal Food, Drug, and Cosmetic Act shall not apply to 

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1 trolled Substances Act, nor to ‘industrial hemp’, as de2 fined in section 297A of the Agricultural Marketing Act 

3 of 1946 (7 U.S.C. 1639o). Notwithstanding any other 

4 Federal law or provision of the Federal Food, Drug, and 

5 Cosmetic Act, the Food and Drug Administration shall 

6 treat cannabis without respect to the doctrine of dietary 

7 supplement and food additive preclusion. 

8 ‘‘(b) CANNABIS-INFUSED DIETARY SUPPLEMENTS; 

9 CLASSIFICATION AS OLD DIETARY INGREDIENT.—Not10 withstanding any other law, ‘marihuana’, as defined in 

11 section 102(16) of the Controlled Substances Act, and ‘in12 dustrial hemp’, as defined in section 297A of the Agricul13 tural Marketing Act of 1946 (7 U.S.C. 1639o), shall be 

14 deemed to have been marketed in the United States as 

15 a dietary ingredient before October 15, 1994 for the pur16 poses of subsections (a) and (d) of section 413 of the Fed17 eral Food, Drug, and Cosmetic Act. 

18 ‘‘(1) Within 30 days of the passage of this Act, 

19 the Food and Drug Administration shall promulgate 

20 an interim final rule and undertake rulemaking 

21 under the Administrative Procedure Act (5 U.S.C. 

22 500 et seq.) for the purposes of establishing a stand23 ard serving size and further clarifying intended con24 ditions of use of whole-plant cannabis extracts and 


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1 individual cannabinoid extracts used as dietary sup2 plements. 

3 ‘‘(2) Such final rule shall be promulgated with4 in 90 days of the publication of the interim final 

5 rule. 

6 ‘‘(c) CANNABIS-INFUSED FOODS AND BEVERAGES; 

7 CLASSIFICATION AS GENERALLY SAFE THROUGH COM8 MON EXPERIENCE.—Notwithstanding any other law, 

9 ‘marihuana’, as defined in section 102(16) of the Con10 trolled Substances Act, or ‘industrial hemp’, as defined in 

11 section 297A of the Agricultural Marketing Act of 1946 

12 (7 U.S.C. 1639o), shall be deemed to be generally recog13 nized as safe through experience based on common use 

14 in food prior to January 1, 1958, for the purposes of sec15 tion 201(s) of the Federal Food, Drug, and Cosmetic Act 

16 and 21 CFR 170.30(a). Cannabis-infused foods and bev17 erages, unless a designated State medical cannabis prod18 uct, shall be considered as regulated under title III of the 

19 Federal Alcohol Administration Act (27 U.S.C. 201 et 

20 seq.). 

21 ‘‘(1) Within 30 days of the passage of this Act, 

22 the Food and Drug Administration shall promulgate 

23 an interim final rule and undertake rulemaking 

24 under the Administrative Procedure Act (5 U.S.C. 

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1 ard serving size and further clarifying conditions of 

2 intended use of whole-plant cannabis extracts and 

3 individual cannabinoid extracts used as food addi4 tives. 

5 ‘‘(2) Such final rule shall be promulgated with6 in 90 days of the publication of the interim final 

7 rule. 

8 ‘‘SEC. 360ggg–3. CANNABIS COSMETICS. 

9 ‘‘(a) CANNABIS ALLOWED IN COSMETICS, ‘SAFE’.— 

10 The use of ‘marihuana’, as defined in section 201(s)(6) 

11 of the Federal Food, Drug, and Cosmetic Act, and ‘indus12 trial hemp’, as defined in section 297A of the Agricultural 

13 Marketing Act of 1946 (7 U.S.C. 1639o), alone in cos14 metic products shall not cause a cosmetic to be adulterated 

15 within the meaning of subsections (a) through (e) of sec16 tion 601 of the Federal Food, Drug, and Cosmetic Act 

17 provided that it is properly labeled and branded within the 

18 meaning of chapter 6 of title 21, United States Code, gen19 erally. 

20 ‘‘(1) Within 30 days of the passage of this Act, 

21 the Food and Drug Administration shall promulgate 

22 an interim final rule and undertake rulemaking 

23 under the Administrative Procedure Act (5 U.S.C. 

24 500 et seq.) to effectuate this provision. 


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1 ‘‘(2) Such final rule shall be promulgated with2 in 90 days of the publication of the interim final 

3 rule. 

4 ‘‘(b) RULE OF CONSTRUCTION.—Notwithstanding 

5 section 360ggg–3(a) of this title, any cosmetic containing 

6 ‘marihuana’, as defined in section 102(16) of the Con7 trolled Substances Act, and ‘industrial hemp’, as defined 

8 in section 297A of the Agricultural Marketing Act of 1946 

9 (7 U.S.C. 1639o), including any extract thereof, where the 

10 cannabis component actually renders it a poisonous or del11 eterious substance, injurious to users under the conditions 

12 of use prescribed in the labeling thereof, or under such 

13 conditions of use as are customary or usual, may be con14 sidered adulterated within the meaning of section 601 of 

15 the Federal Food, Drug, and Cosmetic Act and/or mis16 branded under section 106(4) of the Federal Food, Drug, 

17 and Cosmetic Act. 

18 ‘‘SEC. 360ggg–4. LIABILITY AND METHOD OF PAYMENT. 

19 ‘‘A designated State medical cannabis product, alone 

20 or in combination with another designated State medical 

21 cannabis product or products (as medically appropriate) 

22 deemed under section 360ggg–1 of this title to have in 

23 effect an approved application shall not be assessed fees 

24 under section 379h(a) or 379j–12(a) of this title on the 

25 basis of such deemed approval. 


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1 ‘‘SEC. 360ggg–5. PRIVATE RIGHT OF ACTION AND ADMINIS2 TRATIVE REMEDY. 

3 ‘‘(a) RIGHT OF ACTION.—An adversely affected per4 son or business shall have private right of action under 

5 the Administrative Procedure Act (5 U.S.C. 500 et seq.) 

6 and the Mandamus Act (28 U.S.C. 1361) to compel the 

7 Administrator or any other officer, employee or agent of 

8 the Food and Drug Administration to promulgate regula9 tions or undertake and finalize rulemaking required under 

10 this Act that are not promulgated or published within the 

11 time frames set forth herein, or to provide the certification 

12 of designated State medical cannabis products within the 

13 time frames set forth herein, or to enjoin agency action. 

14 The exclusive venue for bringing any such action shall be 

15 the District Court for the District of Columbia. Upon 

16 demonstration of undue delay or failure to adhere strictly 

17 to statutory deadlines, or other violations of law and eq18 uity, equitable relief in the form of a writ of mandamus 

19 compelling action shall issue, among such other relief as 

20 the court may see fit.’’. 

21 SEC. 302. CERTAIN DEPARTMENT OF HEALTH AND HUMAN 

22 SERVICES AND FOOD AND DRUG ADMINIS23 TRATION REPORTING REQUIREMENTS. 

24 (a) IN GENERAL.—Not later than one calendar year 

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

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1 retary of Health and Human Services shall submit to the 

2 appropriate congressional committees, reports on the fol3 lowing: 

4 (1) SECTION 301 DESIGNATED STATE MEDICAL

5 CANNABIS PRODUCTS REPORT.—A report detailing— 

6 (A) administrative actions taken pursuant 

7 to section 301 of this Act (and the amendments 

8 made by such section) to ensure certification of 

9 designated State medical cannabis products, in10 cluding timelines and reasons for any delays 

11 past statutory deadlines; 

12 (B) the number, nature, and kind of des13 ignated State medical cannabis products grant14 ed or denied certification in the previous year; 

15 (C) any variances or lingering potential 

16 conflicts with State laws regarding medical can17 nabis products and section 301 of this Act (and 

18 the amendments made by such section), and 

19 any plans for resolving these variances; and 

20 (D) the impact of section 301 of this Act 

21 (and the amendments made by such section) 

22 with respect to patient access to designated 

23 State medical cannabis products. 


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1 (2) CANNABIDIOL (CBD) AND OTHER HEMP-DE2 RIVED CANNABINOIDS MARKET AND SAFETY RE3 PORT.—A report detailing— 

4 (A) what the current market for 

5 cannabidiol (hereainfter referred to as ‘‘CBD’’) 

6 and other hemp-derived cannabinoid products 

7 looks like, including the types and forms of 

8 products available, manufacturing practices 

9 within the industry, market supply chain, how 

10 products are marketed and sold, the types of 

11 cannabinoids used in products, the marketed ef12 fects of CBD and other hemp-derived 

13 cannabinoid products, and the range of CBD 

14 and other hemp derived cannabinoid doses cur15 rently found in the market; 

16 (B) what State-based regulations have 

17 been created to CBD and other hemp derived 

18 cannabinoids and what is their interaction with 

19 Agricultural Marketing Act of 1946 in general, 

20 including Public Law 115–334, the Agriculture 

21 Improvement Act of 2018 (‘‘the 2018 Farm 

22 Bill’’); 

23 (C) how the lack of national standards for 

24 CBD and other hemp derived cannabinoid prod25 ucts affects the market; and 


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1 (D) what is currently known about the 

2 safety and risk-benefit profile of CBD and 

3 other hemp derived cannabinoids, including 

4 what safety and toxicity data are available to 

5 support this knowledge and any relevant infor6 mation about safety with regard to specific pop7 ulations, such as children and pregnant individ8 uals 

9 (3) MEDICAL MARIJUANA AND CANNABIDIOL

10 RESEARCH EXPANSION ACT REPORT.—A report de11 tailing— 

12 (A) the number and type of appropriately 

13 registered individuals and entities under the 

14 Act, including the number of applications for 

15 registration received, the number of applications 

16 for registration approved, the number of appli17 cations for registration denied; 

18 (B) the impact of any rescheduling on can19 nabis or cannabis-derived substances to Sched20 ules III–V or full decontrol, on further drug re21 search, including new use and new safety re22 search; 

23 (C) the number and type of any new drugs 

24 developed and approved pursuant to section 201 


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1 of Public Law 117–215, the Medical Marijuana 

2 and Cannabidiol Research Expansion Act; and 

3 (D) the number and type of commercial 

4 drug manufacturer registrants approved and 

5 denied pursuant to section 202 of Public Law 

6 117–215, the Medical Marijuana and 

7 Cannabidiol Research Expansion Act. 

8 (4) FEDERAL FOOD, DRUG, AND COSMETIC ACT

9 PART J IMPLEMENTATION REPORT.—A report detail10 ing— 

11 (A) administrative actions taken to imple12 ment part J of the Federal Food, Drug, and 

13 Cosmetic Act, as added by section 301 of this 

14 Act, including and with specific reference to ac15 tions taken to implement non-designated State 

16 medical cannabis product provisions, such as 

17 new drug, dietary supplement, cosmetic, and 

18 food use provisions; and 

19 (B) administrative actions taken to imple20 ment part J of the Federal Food, Drug, and 

21 Cosmetic Act, as added by section 301 of this 

22 Act, including and with specific reference to ac23 tions taken to implement designated State med24 ical cannabis product provisions. 

25 (b) DEFINITIONS.—In this section— 


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1 (1) the term ‘‘appropriate congressional com2 mittees’’ means the Committee on Energy and Com3 merce of the House of Representatives and the Com4 mittee on Committee on Health Education, Labor, 

5 and Pensions of the United States Senate; and 

6 (2) the term ‘‘hemp’’ has the meaning given the 

7 term in section 297A of the Agricultural Marketing 

8 Act of 1946. 

9 TITLE IV—SMALL BUSINESS 

10 ADMINISTRATION PROVISIONS 

11 SEC. 401. FAIR SMALL BUSINESS ADMINISTRATION ACCESS. 

12 Section 7(a) of the Small Business Act (15 U.S.C. 

13 636(a)) is amended by adding at the end the following 

14 new paragraph: 

15 ‘‘(36) LOANS TO CANNABIS-RELATED LEGITI16 MATE BUSINESSES AND SERVICE PROVIDERS.— 

17 ‘‘(A) IN GENERAL.—The Administrator 

18 may not decline to provide a guarantee for a 

19 loan under this subsection to an otherwise eligi20 ble small business concern solely because such 

21 concern is a cannabis-related legitimate busi22 ness or service provider. 

23 ‘‘(B) DEFINITIONS.—In this paragraph: 

24 ‘‘(i) CANNABIS.—The term ‘cannabis’ 

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1 huana’ in section 102 of the Controlled 

2 Substances Act. 

3 ‘‘(ii) CANNABIS PRODUCT.—The term 

4 ‘cannabis product’ means any article that 

5 contains cannabis, including an article that 

6 is a designated State medical cannabis 

7 product within the meaning of part J of 

8 subchapter V of chapter 9 of the Federal 

9 Food, Drug, and Cosmetic Act. 

10 ‘‘(iii) CANNABIS-RELATED LEGITI11 MATE BUSINESS.—The term ‘cannabis-re12 lated legitimate business’ means a can13 nabis farmer, cannabis producer, or any 

14 person or company that is a small business 

15 concern and that— 

16 ‘‘(I) engages in any activity de17 scribed in subclause (II) pursuant to 

18 a law established by a State or a po19 litical subdivision of a State, as deter20 mined by such State or political sub21 division; and 

22 ‘‘(II) participates in any business 

23 or organized activity that involves 

24 handling cannabis or cannabis prod25 ucts, including cultivating, producing, 


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1 manufacturing, selling, transporting, 

2 displaying, dispensing, retailing, 

3 wholesaling, distributing, or pur4 chasing cannabis or cannabis prod5 ucts. 

6 ‘‘(iv) CANNABIS PRODUCER.—The 

7 term ‘cannabis producer’ means a person 

8 who manufactures, compounds, converts, 

9 processes, prepares, or packages cannabis 

10 or cannabis products. 

11 ‘‘(v) CANNABIS FARMER.—The term 

12 ‘cannabis farmer’ means a person who 

13 plants, cultivates, harvests, or in any way 

14 facilitates the natural growth of cannabis. 

15 ‘‘(vi) SERVICE PROVIDER.—The term 

16 ‘service provider’— 

17 ‘‘(I) means a business, organiza18 tion, or other person that— 

19 ‘‘(aa) sells goods or services 

20 to a cannabis-related legitimate 

21 business; or 

22 ‘‘(bb) provides any business 

23 services, including the sale or 

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1 ices, or any other ancillary serv2 ice, relating to cannabis; and 

3 ‘‘(II) does not include a business, 

4 organization, or other person that 

5 participates in any business or orga6 nized activity that involves handling 

7 cannabis or cannabis products, includ8 ing cultivating, producing, manufac9 turing, selling, transporting, dis10 playing, dispensing, retailing, whole11 saling, distributing, or purchasing 

12 cannabis or cannabis products. 

13 ‘‘(vii) STATE.—The term ‘State’ 

14 means each of the several States, the Dis15 trict of Columbia, Puerto Rico, and any 

16 territory or possession of the United 

17 States.’’. 

18 SEC. 402. DISASTER LOAN NONDISCRIMINATION. 

19 Section 7(b) of the Small Business Act (15 U.S.C. 

20 636(b)) is amended by inserting after paragraph (15) the 

21 following new paragraph: 

22 ‘‘(16) 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 borrower solely because such borrower is a cannabis2 related legitimate business or service provider (as 

3 defined in subsection (a)(36)).’’. 

4 SEC. 403. MICROLOAN NONDISCRIMINATION. 

5 Section 7(m) of the Small Business Act (15 U.S.C. 

6 636(m)(13)) is amended by adding at the end the fol7 lowing new paragraph: 

8 ‘‘(14) ASSISTANCE TO CANNABIS-RELATED LE9 GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

10 An eligible intermediary may not decline to provide 

11 assistance under this subsection to an otherwise eli12 gible borrower solely because such borrower is a can13 nabis-related legitimate business or service provider 

14 (as defined in subsection (a)(36)).’’. 

15 SEC. 404. SMALL BUSINESS INVESTMENT COMPANY DEBEN16 TURE NONDISCRIMINATION. 

17 Part A of title III of the Small Business Investment 

18 Act of 1958 (15 U.S.C. 695 et seq.) is amended by adding 

19 at the end the following new section: 

20 ‘‘SEC. 321. DEBENTURES TO FINANCE CANNABIS-RELATED 

21 BUSINESSES AND SERVICE PROVIDERS. 

22 ‘‘The Administrator may not decline to purchase or 

23 guarantee a debenture made under this title to an other24 wise eligible small business investment company solely be25 cause such small business investment company provides 


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1 financing to an entity that is a cannabis-related legitimate 

2 business or service provider (as defined in section 7(a)(38) 

3 of the Small Business Act).’’. 

4 SEC. 405. STATE OR LOCAL DEVELOPMENT LOAN NON-DIS5 CRIMINATION. 

6 Title V of the Small Business Investment Act of 1958 

7 (15 U.S.C. 695 et seq.) is amended by adding at the end 

8 the following new section: 

9 ‘‘SEC. 511. LOANS TO CANNABIS-RELATED LEGITIMATE 

10 BUSINESSES AND SERVICE PROVIDERS. 

11 ‘‘The Administrator may not decline to provide a 

12 guarantee for a loan under this title to an otherwise eligi13 ble State or local development company solely because 

14 such State or local development company provides financ15 ing to an entity that is a cannabis-related legitimate busi16 ness or service provider (as defined in section 7(a)(36) of 

17 the Small Business Act).’’. 

18 SEC. 406. RULEMAKING AND DISBURSEMENT. 

19 Not later than 30 days after the date of the enact20 ment of this Act, the Administrator of the Small Business 

21 Administration shall issue or amend any rules or interim 

22 final rules, standard operating procedures, other legal or 

23 policy guidance necessary to carry out the requirements 

24 of this Act and the amendments made by this Act. The 

25 Administrator shall begin incurring obligations and disVerDate Sep 11 2014 23:29 Nov 07, 2023 Jkt 049200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 E:\BILLS\H6028.IH H6028

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1 bursing funds made available to the Administration for the 

2 purposes of carrying out this Act within 45 days of the 

3 enactment of this Act. 

4 SEC. 407. ADMINISTRATIVE PROCEDURE ACT AND MAN5 DAMUS REMEDIES. 

6 Should the Administrator fail to issue or amend any 

7 rules or interim final rules, standard operating procedures, 

8 other legal or policy guidance necessary to carry out the 

9 requirements of this Act and the amendments made by 

10 this Act within the 30 days described above, or fail to 

11 make an application decision within 30 days of submission 

12 of a completed application, an applicant shall have the 

13 right to compel action under the Administrative Procedure 

14 Act (5 U.S.C. 500 et seq.) and the Mandamus Act (28 

15 U.S.C. 1361), in any United States district court where 

16 the applicant resides or does business or in the United 

17 States District Court for the District of Columbia. Should 

18 the applicant substantially prevail, such applicant shall be 

19 entitled to attorneys’ fees and costs associated with com20 pelling a decision under this section. Such mandamus rem21 edy shall issue upon demonstration of failure to meet 

22 deadlines described herein. 


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1 TITLE V—IMPOSITION OF 

2 CANNABIS EXCISE TAX 

3 SEC. 501. LAW ENFORCEMENT RETRAINING AND SUCCESS4 FUL SECOND CHANCES FUND. 

5 (a) CREATION OF LAW ENFORCEMENT RETRAINING

6 AND SUCCESSFUL SECOND CHANCES FUND.—There is es7 tablished in the Treasury of the United States a fund to 

8 be known as the ‘‘Law Enforcement Retraining and Suc9 cessful Second Chances Fund’’ (referred to in this section 

10 as the ‘‘Law Enforcement and Second Chances Fund’’), 

11 consisting of such amounts as may be appropriated or 

12 credited to such a fund as provided in this section or sec13 tion 9602(b) of the Internal Revenue Code. 

14 (b) AUTHORIZATION OF APPROPRIATIONS.—To carry 

15 out this section, there are authorized to be appropriated 

16 to the Law Enforcement and Second Chances Fund such 

17 sums as may be necessary to carry out the purposes of 

18 this subchapter for fiscal year 2024, to remain available 

19 until expended. 

20 (c) FUTURE FISCAL YEARS.—For the 10 fiscal years 

21 following fiscal year 2024, there is authorized to be appro22 priated to the Law Enforcement and Second Chances 

23 Fund such sums as may be necessary to carry out the 

24 purposes of this subchapter. 


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1 (d) AVAILABILITY OF LAW ENFORCEMENT AND SEC2 OND CHANCES FUND.—Amounts in the Law Enforcement 

3 and Second Chances Fund shall be available, until ex4 pended, as provided under this section. 

5 (e) SET-ASIDES.— 

6 (1) CRISIS STABILIZATION AND COMMUNITY RE7 ENTRY GRANT PROGRAM.—Of the amounts in the 

8 Law Enforcement and Second Chances Fund— 

9 (A) 10 percent shall be set aside for grants 

10 made under section 3052(a) of part OO of the 

11 Omnibus Crime Control and Safe Streets Act of 

12 1968; and 

13 (B) 10 percent shall be set aside for grants 

14 made under section 3052(b) of part OO of the 

15 Omnibus Crime Control and Safe Streets Act of 

16 1968. 

17 (2) EDWARD BYRNE MEMORIAL JUSTICE AS18 SISTANCE GRANT PROGRAM.—Of the amounts in the 

19 Law Enforcement and Second Chances Fund, 10 

20 percent shall be set aside for grants made under 

21 part A of title 34, United States Code. 

22 (3) COMMUNITY-ORIENTED POLICING SERVICES

23 HIRING PROGRAM.—Of the amounts in the Law En24 forcement and Second Chances Fund, 10 percent 

25 shall be set aside for activities authorized by the 


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1 Violent Crime Control and Law Enforcement Act of 

2 1994 (Public Law 103–322); the Omnibus Crime 

3 Control and Safe Streets Act of 1968 (‘‘the 1968 

4 Act’’); and the Violence Against Women and Depart5 ment of Justice Reauthorization Act of 2005 (Public 

6 Law 109–162) (‘‘the 2005 Act’’). No less than 5 

7 percent of this set-aside shall be directed towards 

8 grants made under section 1701 of title I of the 

9 1968 Act (42 U.S.C. 3796dd) for the hiring and re10 hiring of additional career law enforcement officers 

11 under part Q of such title notwithstanding sub12 section (i) of such section. 

13 (4) SUCCESSFUL SECOND CHANCES PRO14 GRAM.—Of the amounts in the Law Enforcement 

15 and Second Chances Fund, 30 percent shall be set 

16 aside for the Small Business Administrator to carry 

17 out the provisions of title IV of the States Reform 

18 Act. 

19 (5) VETERANS MENTAL HEALTH FUNDING.—Of 

20 the amounts in the Law Enforcement and Second 

21 Chances Fund, 10 percent shall be set aside for the 

22 Secretary of the Veterans Affairs to carry out the 

23 provisions of section 1720I(a) and 1720I(c) of title 

24 38, United States Code. 


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1 (6) STATE RESPONSE TO OPIOID ADDICTION

2 FUNDING.—Of the amounts in the Law Enforcement 

3 and Second Chances Fund, 5 percent shall be set 

4 aside for the Secretary of Health and Human Serv5 ices to carry out the provisions of section 290ee–3 

6 of title 42, United States Code. 

7 (7) UNDERAGE YOUTH USE PREVENTION FUND8 ING.—Of the amounts in the Law Enforcement and 

9 Second Chances Fund, 5 percent shall be set aside 

10 for the Assistant Secretary for Mental Health and 

11 Substance Use of the Substance Abuse and Mental 

12 Health Services Administration to help prevent un13 derage cannabis use in carrying out the provisions of 

14 title 42, United States Code. 

15 (8) RAPID RESPONSE TO NOVEL CARTEL

16 GROWTH.—Of the amounts in the Law Enforcement 

17 and Second Chances Fund, 5 percent shall be set 

18 aside for the Attorney General to carry out the pro19 visions of section 873(a)(5)–(6) of title 21, United 

20 States Code. 

21 (f) ALLOTMENT.—All funds for carrying out the pro22 visions of this chapter shall be available for allotment to 

23 bureaus and offices of the Department of Justice and the 

24 Small Business Administration, and for transfer to such 

25 other agencies of the Federal Government, and to such 


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1 State agencies, as the Secretary of the Treasury may re2 quest to cooperate or assist in carrying out the provisions 

3 of this chapter. 

4 SEC. 502. CANNABIS REVENUE AND REGULATION ACT. 

5 Subtitle E of title I of the Internal Revenue Code of 

6 1986 is amended by adding at the end the following new 

7 chapter: 

8 ‘‘CHAPTER 56—CANNABIS PRODUCTS 

‘‘SUBCHAPTER A—IMPOSITION OF TAX

‘‘Sec. 5901. Imposition of tax. 

‘‘Sec. 5902. Definitions. 

‘‘Sec. 5903. Liability and method of payment. 

‘‘Sec. 5904. Exemption from tax. 

‘‘Sec. 5905. Credit, refund, or drawback of tax. 

‘‘SUBCHAPTER B—OPERATIONS

‘‘Sec. 5911. Inventories, reports, and records. 

‘‘Sec. 5912. Packaging and labeling. 

‘‘Sec. 5913. Purchase, receipt, possession, or sale of cannabis products after removal. 

‘‘Sec. 5914. Restrictions relating to marks, labels, notices, and packages. 

‘‘Sec. 5915. Restriction on importation of previously exported cannabis products. 

‘‘SUBCHAPTER C—PENALTIES

‘‘Sec. 5921. Civil penalties. 

9 ‘‘Subchapter A—Imposition of Tax 

10 ‘‘SEC. 5901. IMPOSITION OF TAX. 

11 ‘‘(a) IMPOSITION OF EXCISE TAX.—There is hereby 

12 imposed on any cannabis product produced in or imported 

13 into the United States a tax equal to 3 percent of the 

14 removal price of such a cannabis product sold in the 

15 United States during the 12-month period ending 1 cal16 endar quarter before such calendar year. 


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1 ‘‘(b) MORATORIUM ON CANNABIS PRODUCT EXCISE

2 TAX INCREASES.—There is hereby imposed, notwith3 standing any other law, including, but not limited to the 

4 Congressional Budget and Impoundment Control Act of 

5 1974 (Public Law 93–344, 88 Stat. 297, 2 U.S.C. 601– 

6 688), for the 10 calendar years following the passage of 

7 this Act, a moratorium on increasing the excise tax im8 posed on cannabis products by this section 5901. Such 

9 moratorium may be waived before the 10 year timeframe 

10 by a three-quarters vote to do so by both Houses of Con11 gress. 

12 ‘‘(c) REMOVAL PRICE CATEGORIES.— 

13 ‘‘(1) IN GENERAL.—For the purposes of sub14 section (a), the Secretary shall impose the tax on the 

15 removal price— 

16 ‘‘(A) per 454 grams of cannabis flower, 

17 ‘‘(B) per 100 grams of cannabis pre-rolls, 

18 ‘‘(C) per 20 grams of cannabis extracts, 

19 ‘‘(D) per 10 grams of cannabis vaporizer 

20 cartridges, 

21 ‘‘(E) of 20 units of edible cannabis prod22 uct, and 

23 ‘‘(F) of 20 units of cannabis topical or cos24 metic product. 


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1 ‘‘(2) NEW REMOVAL PRICE CATEGORIES AND

2 BASIS.—For the purposes of subsection (c), the Sec3 retary may, under the processes of the Administra4 tive Procedure Act (5 U.S.C. 500 et seq.), undertake 

5 formal rulemaking to establish new removal price 

6 categories and bases for cannabis products that are 

7 not covered under subsection (c)(1). 

8 ‘‘(3) CLARIFYING RULEMAKING.—The Sec9 retary may, consistent with the Administrative Pro10 cedure Act (5 U.S.C. 500 et seq.), further clarify the 

11 application of subsection (c)(1). 

12 ‘‘(d) TIME OF ATTACHMENT ON CANNABIS PROD13 UCTS.—The tax under this section shall attach to any can14 nabis product as soon as such product is in existence as 

15 such, whether it be subsequently separated or transferred 

16 into any other substance, either in the process of original 

17 production or by any subsequent process. Raw cannabis 

18 not yet delivered to a producer for processing, manufac19 turing, or production shall not be considered a product 

20 in existence for the purposes of this subsection (d). 

21 ‘‘SEC. 5902. DEFINITIONS. 

22 ‘‘(a) DEFINITIONS RELATED TO CANNABIS PROD23 UCTS.—For purposes of this chapter: 

24 ‘‘(1) CANNABIS PRODUCT.— 


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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the term ‘cannabis product’ 

3 means any article that contains or consists of 

4 cannabis. 

5 ‘‘(B) EXCEPTIONS.—The term ‘cannabis 

6 product’ does not include an FDA-approved ar7 ticle, industrial hemp, or the unproduced, raw 

8 agricultural commodity of cannabis. 

9 ‘‘(2) FDA-APPROVED ARTICLE.—The term 

10 ‘FDA-approved article’ means any article if the pro11 ducer or importer thereof demonstrates to the satis12 faction of the Secretary of Health and Human Serv13 ices that such article is— 

14 ‘‘(A) a drug— 

15 ‘‘(i) that is approved under section 

16 505 of the Federal Food, Drug, and Cos17 metic Act or licensed under section 351 of 

18 the Public Health Service Act, or 

19 ‘‘(ii) for which an investigational use 

20 exemption has been authorized under sec21 tion 505(i) of the Federal Food, Drug, and 

22 Cosmetic Act or under section 351(a) of 

23 the Public Health Service Act, 

24 ‘‘(B) a combination product (as described 

25 in section 503(g) of the Federal Food, Drug, 


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1 and Cosmetic Act), the constituent parts of 

2 which were approved or cleared under section 

3 505, 510(k), or 515 of such Act, or 

4 ‘‘(C) a ‘designated State medical cannabis 

5 product’ within the meaning of part J of sub6 chapter V of chapter 9 of title 21, United 

7 States Code (the Federal Food, Drug, and Cos8 metic Act). 

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

10 same meaning given to the term ‘marihuana’ under 

11 section 102(16) of the Controlled Substances Act 

12 (21 U.S.C. 802(16)). 

13 ‘‘(4) INDUSTRIAL HEMP.—The term ‘industrial 

14 hemp’ has the same meaning given to the term ‘in15 dustrial hemp’ in section 297A of the Agricultural 

16 Marketing Act of 1946 (7 U.S.C. 1621 et seq.) 

17 (codified at 7 U.S.C. 5940(b)(2)). 

18 ‘‘(b) DEFINITIONS RELATED TO CANNABIS BUSI19 NESSES AND PRODUCERS.—For purposes of this chapter: 

20 ‘‘(1) CANNABIS BUSINESS.—The term ‘cannabis 

21 business’ means a producer, importer, or export 

22 warehouse proprietor. 

23 ‘‘(2) PRODUCER.— 

24 ‘‘(A) IN GENERAL.—The term ‘producer’ 

25 means any person who manufactures, produces, 


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1 compounds, converts, processes, prepares, or 

2 packages any cannabis product. 

3 ‘‘(B) PERSONAL USE EXCEPTION.—Subject 

4 to regulation prescribed by the Secretary, the 

5 term ‘producer’ shall not include any individual 

6 otherwise described in subparagraph (A) if the 

7 only cannabis product described in such sub8 paragraph with respect to such individual is for 

9 personal or family use and not for sale. 

10 ‘‘(C) CANNABIS FARMERS NOT PRO11 DUCERS.—A producer does not mean a person 

12 who plants, cultivates, harvests, grows the raw 

13 agricultural commodity of cannabis not yet fin14 ished into a produced article for consumption. 

15 This provision shall not be constructed as pre16 cluding a cannabis farmer from also being a 

17 cannabis producer within the same enterprise. 

18 ‘‘(3) IMPORTER.—The term ‘importer’ means 

19 any person who— 

20 ‘‘(A) is in the United States and to whom 

21 non-tax-paid cannabis products, produced in a 

22 foreign country or a possession of the United 

23 States, are shipped or consigned, 


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1 ‘‘(B) removes cannabis products for sale or 

2 consumption in the United States from a cus3 toms warehouse, or 

4 ‘‘(C) smuggles or otherwise unlawfully 

5 brings any cannabis product into the United 

6 States. 

7 ‘‘(4) EXPORT WAREHOUSE PROPRIETOR.— 

8 ‘‘(A) IN GENERAL.—The term ‘export 

9 warehouse proprietor’ means any person who 

10 operates an export warehouse. 

11 ‘‘(B) EXPORT WAREHOUSE.—The term 

12 ‘export warehouse’ means an internal revenue 

13 warehouse for the storage of cannabis products, 

14 upon which the internal revenue tax has not 

15 been paid— 

16 ‘‘(i) for subsequent shipment to a for17 eign country or a possession of the United 

18 States, or 

19 ‘‘(ii) for consumption beyond the ju20 risdiction of the internal revenue laws of 

21 the United States. 

22 ‘‘(5) CANNABIS PRODUCTION FACILITY.—The 

23 term ‘cannabis production facility’ means an estab24 lishment that is qualified under subchapter C to perVerDate Sep 11 2014 23:29 Nov 07, 2023 Jkt 049200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\H6028.IH H6028

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1 form any operation for which such qualification is 

2 required under such subchapter. 

3 ‘‘(c) OTHER DEFINITIONS.—For purposes of this 

4 chapter— 

5 ‘‘(1) PRODUCE.—The term ‘produce’ includes 

6 any activity described in subsection (b)(2)(A). 

7 ‘‘(2) REMOVAL; REMOVE.—The terms ‘removal’ 

8 or ‘remove’ mean— 

9 ‘‘(A) the transfer of cannabis products 

10 from the premises of a producer (or the trans11 fer of such products from the premises of a pro12 ducer to the premises of such producer), 

13 ‘‘(B) release of such products from cus14 toms custody, or 

15 ‘‘(C) smuggling or other unlawful importa16 tion of such products into the United States. 

17 ‘‘(3) REMOVAL PRICE.—The term ‘removal 

18 price’ means— 

19 ‘‘(A) except as otherwise provided in this 

20 paragraph, the price for which the cannabis 

21 product is sold in the sale that occurs in con22 nection with the removal of such product, 

23 ‘‘(B) in the case of any such sale that is 

24 described in section 5903(c), the price deter25 mined under such section, and 


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1 ‘‘(C) if there is no sale that occurs in con2 nection with such removal, the price that would 

3 be determined under section 5903(c) if such 

4 product were sold at a price that cannot be de5 termined. 

6 ‘‘SEC. 5903. LIABILITY AND METHOD OF PAYMENT. 

7 ‘‘(a) LIABILITY FOR TAX.— 

8 ‘‘(1) ORIGINAL LIABILITY.—The producer or 

9 importer of any cannabis product shall be liable for 

10 the taxes imposed thereon by section 5901. 

11 ‘‘(2) TRANSFER OF LIABILITY.— 

12 ‘‘(A) IN GENERAL.—When cannabis prod13 ucts are transferred, without payment of tax, 

14 pursuant to subsection (b) or (c) of section 

15 5904— 

16 ‘‘(i) except as provided in clause (ii), 

17 the transferee shall become liable for the 

18 tax upon receipt by the transferee of such 

19 articles, and the transferor shall there20 upon be relieved of their liability for such 

21 tax, and 

22 ‘‘(ii) in the case of cannabis products 

23 that are released from customs custody for 

24 transfer to the premises of a producer, the 

25 transferee shall become liable for the tax 


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1 on such articles upon release from customs 

2 custody, and the importer shall thereupon 

3 be relieved of their liability for such tax. 

4 ‘‘(B) RETURN.—All provisions of this 

5 chapter applicable to cannabis products shall be 

6 applicable to such articles returned upon with7 drawal from the market or returned after pre8 vious removal for a tax-exempt purpose. 

9 ‘‘(b) METHOD OF PAYMENT OF TAX.— 

10 ‘‘(1) IN GENERAL.— 

11 ‘‘(A) TAXES PAID ON BASIS OF RETURN.— 

12 The taxes imposed by section 5901 shall be 

13 paid on the basis of return. The Secretary shall, 

14 by regulations, prescribe the period or the event 

15 to be covered by such return and the informa16 tion to be furnished on such return. 

17 ‘‘(B) APPLICATION TO TRANSFEREES.—In 

18 the case of any transfer to which subsection 

19 (a)(2)(A) applies, the tax under section 5901 on 

20 the transferee shall (if not otherwise relieved by 

21 reason of a subsequent transfer to which such 

22 subsection applies) be imposed with respect to 

23 the removal of the cannabis product from the 

24 premises of the transferee. 


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1 ‘‘(C) POSTPONEMENT.—Any postponement 

2 under this subsection of the payment of taxes 

3 determined at the time of removal shall be con4 ditioned upon compliance with such require5 ments, as the Secretary may prescribe for the 

6 protection of the revenue. The Secretary may, 

7 by regulations, require payment of tax on the 

8 basis of a return prior to removal of the can9 nabis products where a person defaults in the 

10 postponed payment of tax on the basis of a re11 turn under this subsection or regulations pre12 scribed thereunder. 

13 ‘‘(D) ADMINISTRATION AND PENALTIES.— 

14 All administrative and penalty provisions of this 

15 title, as applicable, shall apply to any tax im16 posed by section 5901. 

17 ‘‘(2) TIME FOR PAYMENT OF TAXES.— 

18 ‘‘(A) IN GENERAL.—Except as otherwise 

19 provided in this paragraph, in the case of taxes 

20 on cannabis products removed during any semi21 monthly period for deferred payment of tax, the 

22 last day for payment of such taxes shall be the 

23 14th day after the last day of such semimonthly 

24 period. 


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1 ‘‘(B) IMPORTED ARTICLES.—In the case of 

2 cannabis products that are imported into the 

3 United States, the following provisions shall 

4 apply: 

5 ‘‘(i) IN GENERAL.—The last day for 

6 payment of tax shall be the 14th day after 

7 the last day of the semimonthly period 

8 during which the article is entered into the 

9 customs territory of the United States. 

10 ‘‘(ii) SPECIAL RULE FOR ENTRY OF

11 WAREHOUSING.—Except as provided in 

12 clause (iv), in the case of an entry for 

13 warehousing, the last day for payment of 

14 tax shall not be later than the 14th day 

15 after the last day of the semimonthly pe16 riod during which the article is removed 

17 from the first such warehouse. 

18 ‘‘(iii) FOREIGN TRADE ZONES.—Ex19 cept as provided in clause (iv) and in regu20 lations prescribed by the Secretary, articles 

21 brought into a foreign trade zone shall, 

22 notwithstanding any other provision of law, 

23 be treated for purposes of this subsection 

24 as if such zone were a single customs 

25 warehouse. 


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1 ‘‘(iv) EXCEPTION FOR ARTICLES DES2 TINED FOR EXPORT.—Clauses (ii) and (iii) 

3 shall not apply to any article that is shown 

4 to the satisfaction of the Secretary to be 

5 destined for export. 

6 ‘‘(C) CANNABIS PRODUCTS BROUGHT INTO

7 THE UNITED STATES FROM PUERTO RICO.—In 

8 the case of cannabis products that are brought 

9 into the United States from Puerto Rico and 

10 subject to tax under section 7652, the last day 

11 for payment of tax shall be the 14th day after 

12 the last day of the semimonthly period during 

13 which the article is brought into the United 

14 States. 

15 ‘‘(D) SPECIAL RULE WHERE DUE DATE

16 FALLS ON SATURDAY, SUNDAY, OR HOLIDAY.— 

17 Notwithstanding section 7503, if, but for this 

18 subparagraph, the due date under this para19 graph would fall on a Saturday, Sunday, or a 

20 legal holiday (as defined in section 7503), such 

21 due date shall be the immediately preceding day 

22 that is not a Saturday, Sunday, or such a holi23 day. 

24 ‘‘(E) SPECIAL RULE FOR UNLAWFULLY

25 PRODUCED CANNABIS PRODUCTS.—In the case 


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1 of any cannabis products produced in the 

2 United States at any place other than the 

3 premises of a producer that has obtained the 

4 permit required under this chapter, tax shall be 

5 due and payable immediately upon production. 

6 ‘‘(3) PAYMENT BY ELECTRONIC FUND TRANS7 FER.—Any person who in any 12-month period, end8 ing December 31, was liable for a gross amount 

9 equal to or exceeding $1,000,000 in taxes imposed 

10 on cannabis products by section 5901 (or section 

11 7652) shall pay such taxes during the succeeding 

12 calendar year by electronic fund transfer (as defined 

13 in section 5061(e)(2)) to a Federal Reserve Bank. 

14 Rules similar to the rules of section 5061(e)(3) shall 

15 apply to the $1,000,000 amount specified in the pre16 ceding sentence. 

17 ‘‘(c) DEFINITION OF PRICE.— 

18 ‘‘(1) CONSTRUCTIVE SALE PRICE.— 

19 ‘‘(A) IN GENERAL.—If an article is sold di20 rectly to consumers, sold on consignment, or 

21 sold (otherwise than through an arm’s length 

22 transaction) at less than the fair market price, 

23 or if the price for which the article sold cannot 

24 be determined, the tax under section 5901(a) 

25 shall be computed on the price for which such 


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1 articles are sold, in the ordinary course of 

2 trade, by producers thereof, as determined by 

3 the Secretary. 

4 ‘‘(B) ARM’S LENGTH.— 

5 ‘‘(i) IN GENERAL.—For purposes of 

6 this section, a sale is considered to be 

7 made under circumstances otherwise than 

8 at arm’s length if— 

9 ‘‘(I) the parties are members of 

10 the same controlled group, whether or 

11 not such control is actually exercised 

12 to influence the sale price, 

13 ‘‘(II) the parties are members of 

14 a family, as defined in section 

15 267(c)(4), or 

16 ‘‘(III) the sale is made pursuant 

17 to special arrangements between a 

18 producer and a purchaser. 

19 ‘‘(ii) CONTROLLED GROUPS.— 

20 ‘‘(I) IN GENERAL.—The term 

21 ‘controlled group’ has the meaning 

22 given to such term by subsection (a) 

23 of section 1563, except that ‘more 

24 than 50 percent’ shall be substituted 


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1 for ‘at least 80 percent’ each place it 

2 appears in such subsection. 

3 ‘‘(II) CONTROLLED GROUPS

4 THAT INCLUDE NONINCORPORATED

5 PERSONS.—Under regulations pre6 scribed by the Secretary, principles 

7 similar to the principles of subclause 

8 (I) shall apply to a group of persons 

9 under common control where one or 

10 more of such persons is not a corpora11 tion. 

12 ‘‘(2) CONTAINERS, PACKING AND TRANSPOR13 TATION CHARGES.—In determining, for the purposes 

14 of this chapter, the price for which an article is sold, 

15 there shall not be included any charge for coverings 

16 and containers of whatever nature, and any charge 

17 incident to placing the article in condition packed 

18 ready for shipment. Further, there shall be excluded 

19 the amount of tax imposed by this chapter, whether 

20 or not stated as a separate charge. A transportation, 

21 delivery, insurance, installation, or other charge (not 

22 required by the preceding sentence to be included) 

23 shall likewise be excluded from the price. 

24 ‘‘(d) PARTIAL PAYMENTS AND INSTALLMENT AC25 COUNTS.— 


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1 ‘‘(1) PARTIAL PAYMENTS.—There shall be paid 

2 upon each payment with respect to the article a per3 centage of such payment equal to the rate of tax in 

4 effect on the date such payment is due in the case 

5 of— 

6 ‘‘(A) a contract for the sale of an article 

7 wherein it is provided that the price shall be 

8 paid by installments and title to the article sold 

9 does not pass until a future date notwith10 standing partial payment by installments, 

11 ‘‘(B) a conditional sale, or 

12 ‘‘(C) a chattel mortgage arrangement 

13 wherein it is provided that the sales price shall 

14 be paid in installments. 

15 ‘‘(2) SALES OF INSTALLMENT ACCOUNTS.—If 

16 installment accounts, with respect to payments on 

17 which tax is being computed as provided in para18 graph (1), are sold or otherwise disposed of, then 

19 paragraph (1) shall not apply with respect to any 

20 subsequent payments on such accounts (other than 

21 subsequent payments on returned accounts with re22 spect to which credit or refund is allowable by rea23 son of section 6416(b)(5)), but instead— 

24 ‘‘(A) there shall be paid an amount equal 

25 to the difference between— 


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1 ‘‘(i) the tax previously paid on the 

2 payments on such installment accounts, 

3 and 

4 ‘‘(ii) the total tax that would be pay5 able if such installment accounts had not 

6 been sold or otherwise disposed of (com7 puted as provided in paragraph (1)), ex8 cept that 

9 ‘‘(B) if any such sale is pursuant to the 

10 order of, or subject to the approval of, a court 

11 of competent jurisdiction in a bankruptcy or in12 solvency proceeding, the amount computed 

13 under subparagraph (A) shall not exceed the 

14 sum of the amounts computed by multiplying— 

15 ‘‘(i) the proportionate share of the 

16 amount for which such accounts are sold 

17 that is allocable to each unpaid installment 

18 payment, by 

19 ‘‘(ii) the rate of tax under this chap20 ter in effect on the date such unpaid in21 stallment payment is or was due. 

22 ‘‘(3) LIMITATION.—The sum of the amounts 

23 payable under this subsection in respect of the sale 

24 of any article shall not exceed the total tax. 


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1 ‘‘SEC. 5904. EXEMPTION FROM TAX. 

2 ‘‘(a) EXEMPTION FROM TAX.—Cannabis products on 

3 which the internal revenue tax has not been paid or deter4 mined may, subject to such regulations as the Secretary 

5 shall prescribe, be withdrawn from the premises of any 

6 producer in approved containers free of tax and not for 

7 resale for use— 

8 ‘‘(1) exclusively in scientific research by a lab9 oratory, 

10 ‘‘(2) by a proprietor of a cannabis production 

11 facility in research, development, or testing (other 

12 than consumer testing or other market analysis) of 

13 processes, systems, materials, or equipment, relating 

14 to cannabis or cannabis operations, under such limi15 tations and conditions as to quantities, use, and ac16 countability as the Secretary may by regulations re17 quire for the protection of the revenue, 

18 ‘‘(3) by the United States or any governmental 

19 agency thereof, any State, any political subdivision 

20 of a State, or the District of Columbia, for non21 consumption purposes, or 

22 ‘‘(4) by a qualified State medical cannabis pa23 tient or patients, when the cannabis product is 100 

24 percent donated to the patient or patients, and such 

25 a donated article otherwise qualifies for use as a 

26 ‘designated State medical cannabis product’ within 


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1 the meaning of section 360ggg of the Federal Food, 

2 Drug, and Cosmetic Act Federal Food, Drug, and 

3 Cosmetic Act. 

4 ‘‘(b) CANNABIS PRODUCTS TRANSFERRED OR RE5 MOVED FROM DOMESTIC FACTORIES AND EXPORT WARE6 HOUSES.— 

7 ‘‘(1) IN GENERAL.—Subject to such regulations 

8 as the Secretary shall prescribe, a producer or ex9 port warehouse proprietor may transfer cannabis 

10 products, without payment of tax, to the premises of 

11 another producer or export warehouse proprietor, or 

12 remove such articles, without payment of tax, for 

13 shipment to a foreign country, Puerto Rico, the Vir14 gin Islands, or a possession of the United States, or 

15 for consumption beyond the jurisdiction of the inter16 nal revenue laws of the United States. 

17 ‘‘(2) LABELING.—Cannabis products may not 

18 be transferred or removed under this subsection un19 less such products bear such marks, labels, or no20 tices as the Secretary shall by regulations prescribe. 

21 ‘‘(c) CANNABIS PRODUCTS RELEASED FROM CUS22 TOMS CUSTODY.—Cannabis products imported or brought 

23 into the United States may be released from customs cus24 tody, without payment of tax, for delivery to a producer 

25 or export warehouse proprietor if such articles are not put 


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1 up in packages, in accordance with such regulations as 

2 the Secretary shall prescribe. 

3 ‘‘(d) CANNABIS PRODUCTS EXPORTED AND RE4 TURNED.—Cannabis products classifiable under item 

5 9801.00.10 of the Harmonized Tariff Schedule of the 

6 United States (relating to duty on certain articles pre7 viously exported and returned), as in effect on the date 

8 of the enactment of the States Reform Act, may be re9 leased from customs custody, without payment of that 

10 part of the duty attributable to the internal revenue tax 

11 for delivery to the original producer of such cannabis prod12 ucts or to the export warehouse proprietor authorized by 

13 such producer to receive such products, in accordance with 

14 such regulations as the Secretary shall prescribe. Upon 

15 such release such products shall be subject to this chapter 

16 as if they had not been exported or otherwise removed. 

17 ‘‘SEC. 5905. CREDIT, REFUND, OR DRAWBACK OF TAX. 

18 ‘‘(a) CREDIT OR REFUND.— 

19 ‘‘(1) IN GENERAL.—Credit or refund of any tax 

20 imposed by this chapter or section 7652 shall be al21 lowed or made (without interest) to the producer, 

22 importer, or export warehouse proprietor on proof 

23 satisfactory to the Secretary that the claimant pro24 ducer, importer, or export warehouse proprietor has 

25 paid the tax on— 


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1 ‘‘(A) cannabis products withdrawn from 

2 the market by the claimant, or 

3 ‘‘(B) such products lost (otherwise than by 

4 theft) or destroyed, by fire, casualty, or act of 

5 God, while in the possession or ownership of the 

6 claimant. 

7 ‘‘(2) CANNABIS PRODUCTS LOST OR DE8 STROYED.— 

9 ‘‘(A) EXTENT OF LOSS ALLOWANCE.—No 

10 tax shall be collected in respect of cannabis 

11 products lost or destroyed, except that such tax 

12 shall be collected— 

13 ‘‘(i) in the case of loss by theft, unless 

14 the Secretary finds that the theft occurred 

15 without connivance, collusion, fraud, or 

16 negligence on the part of the proprietor of 

17 cannabis production facility, or owner, con18 signor, consignee, bailee, or carrier, or 

19 their employees or agents, 

20 ‘‘(ii) in the case of voluntary destruc21 tion, unless such destruction is carried out 

22 as provided in paragraph (3), and 

23 ‘‘(iii) in the case of an unexplained 

24 shortage of cannabis products. 


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1 ‘‘(B) PROOF OF LOSS.—In any case in 

2 which cannabis products are lost or destroyed, 

3 whether by theft or otherwise, the Secretary 

4 may require the proprietor of a cannabis pro5 duction facility or other person liable for the 

6 tax to file a claim for relief from the tax and 

7 submit proof as to the cause of such loss. In 

8 every case where it appears that the loss was by 

9 theft, the burden shall be upon the proprietor 

10 of the cannabis production facility or other per11 son responsible for the tax under section 5901 

12 to establish to the satisfaction of the Secretary 

13 that such loss did not occur as the result of 

14 connivance, collusion, fraud, or negligence on 

15 the part of the proprietor of the cannabis pro16 duction facility, or owner, consignor, consignee, 

17 bailee, or carrier, or their employees or agents. 

18 ‘‘(C) REFUND OF TAX.—In any case where 

19 the tax would not be collectible by virtue of sub20 paragraph (A), but such tax has been paid, the 

21 Secretary shall refund such tax. 

22 ‘‘(D) LIMITATIONS.—Except as provided in 

23 subparagraph (E), no tax shall be abated, re24 mitted, credited, or refunded under this para25 graph where the loss occurred after the tax was 


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1 determined. The abatement, remission, credit, 

2 or refund of taxes provided for by subpara3 graphs (A) and (C) in the case of loss of can4 nabis products by theft shall only be allowed to 

5 the extent that the claimant is not indemnified 

6 against or recompensed in respect of the tax for 

7 such loss. 

8 ‘‘(E) APPLICABILITY.—The provisions of 

9 this paragraph shall extend to and apply in re10 spect of cannabis products lost after the tax 

11 was determined and before completion of the 

12 physical removal of the cannabis products from 

13 the premises. 

14 ‘‘(3) VOLUNTARY DESTRUCTION.—The propri15 etor of a cannabis production facility or other per16 sons liable for the tax imposed by this chapter or by 

17 section 7652 with respect to any cannabis product 

18 may voluntarily destroy such products, but only if 

19 such destruction is under such supervision and 

20 under such regulations as the Secretary may pre21 scribe. 

22 ‘‘(4) LIMITATION.—Any claim for credit or re23 fund of tax under this subsection shall be filed with24 in 6 months after the date of the withdrawal from 

25 the market, loss, or destruction of the products to 


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1 which the claim relates, and shall be in such form 

2 and contain such information as the Secretary shall 

3 by regulations prescribe. 

4 ‘‘(b) DRAWBACK OF TAX.—There shall be an allow5 ance of drawback of tax paid on cannabis products, when 

6 shipped from the United States, in accordance with such 

7 regulations as the Secretary shall prescribe. 

8 ‘‘Subchapter B—Operations 

9 ‘‘SEC. 5911. INVENTORIES, REPORTS, AND RECORDS. 

10 ‘‘(a) REQUIREMENTS.—Every cannabis business shall 

11 maintain inventories required by section 471 of title 26, 

12 Internal Revenue Code, as the Secretary shall by formal 

13 rulemaking prescribe, with such inventories to be subject 

14 to verification by any Internal Revenue official during 

15 business hours, in such form, at such times, and for such 

16 periods as the Secretary shall by formal rulemaking pre17 scribe. 

18 ‘‘(1) The formal rulemaking shall take into con19 sideration existing State reporting and inventory 

20 tracking mechanisms and be compatible with exist21 ing State reporting and inventory tracking mecha22 nisms to the extent possible. 

23 ‘‘(2) The formal rulemaking may allow for the 

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1 ment, and that are compatible with, existing State 

2 tracking and reporting mechanisms. 

3 ‘‘(3) Rulemaking with respect to this section 

4 5911 shall take place pursuant to the Administrative 

5 Procedure Act (5 U.S.C. 500 et seq.) and encompass 

6 Paperwork Reduction Act considerations. 

7 ‘‘(b) REPORT.—The Secretary shall provide an an8 nual report on the inventories, sales, and origin of re9 ported cannabis products. 

10 ‘‘SEC. 5912. PACKAGING AND LABELING. 

11 ‘‘(a) PACKAGES.—All cannabis products shall, before 

12 removal, be put up in such packages as the Secretary shall 

13 by regulation prescribe. 

14 ‘‘(b) MARKS, LABELS, AND NOTICES.—Every pack15 age of cannabis products shall, before removal, bear the 

16 marks, labels, and notices, if any, that the Secretary by 

17 regulation prescribes, including, but not limited to, the 

18 total amount of THC or tetrahydrocannabinol. 

19 ‘‘(c) LOTTERY FEATURES.—No certificate, coupon, 

20 or other device purporting to be or to represent a ticket, 

21 chance, share, or an interest in, or dependent on, the event 

22 of a lottery shall be contained in, attached to, or stamped, 

23 marked, written, or printed on any package of a cannabis 

24 product or cannabis products. 


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1 ‘‘(d) EXCEPTIONS.—Subject to regulations pre2 scribed by the Secretary, cannabis products may be ex3 empted from subsections (a) and (b) if such products 

4 are— 

5 ‘‘(1) for experimental purposes, or 

6 ‘‘(2) transferred to the premises of another pro7 ducer or export warehouse proprietor or released 

8 from customs custody for delivery to a producer. 

9 ‘‘SEC. 5913. PURCHASE, RECEIPT, POSSESSION, OR SALE OF 

10 CANNABIS PRODUCTS AFTER REMOVAL. 

11 ‘‘(a) RESTRICTION.—No person shall— 

12 ‘‘(1) with intent to defraud the United States, 

13 purchase, receive, possess, offer for sale, or sell or 

14 otherwise dispose of, after removal, any cannabis 

15 products— 

16 ‘‘(A) upon which the tax has not been paid 

17 or determined in the manner and at the time 

18 prescribed by this chapter or regulations there19 under, or 

20 ‘‘(B) that, after removal without payment 

21 of tax pursuant to section 5904(a), have been 

22 diverted from the applicable purpose or use 

23 specified in that section, 

24 ‘‘(2) with intent to defraud the United States, 

25 purchase, receive, possess, offer for sale, or sell or 


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1 otherwise dispose of, after removal, any cannabis 

2 products that are not put up in packages as required 

3 under section 5912 or that are put up in packages 

4 not bearing the marks, labels, and notices, as re5 quired under such section, or 

6 ‘‘(3) otherwise than with intent to defraud the 

7 United States, purchase, receive, possess, offer for 

8 sale, or sell or otherwise dispose of, after removal, 

9 any cannabis products that are not put up in pack10 ages as required under section 5912 or that are put 

11 up in packages not bearing the marks, labels, and 

12 notices, as required under such section. 

13 ‘‘(b) EXCEPTION.—Paragraph (3) of subsection (a) 

14 shall not prevent the sale or delivery of cannabis products 

15 directly to consumers from proper packages, nor apply to 

16 such articles when so sold or delivered. 

17 ‘‘(c) LIABILITY TO TAX.—Any person who possesses 

18 cannabis products in violation of paragraph (1) or (2) of 

19 subsection (a) shall be liable for a tax equal to the tax 

20 on such articles. 

21 ‘‘SEC. 5914. RESTRICTIONS RELATING TO MARKS, LABELS, 

22 NOTICES, AND PACKAGES. 

23 ‘‘No person shall, with intent to defraud the United 

24 States, destroy, obliterate, or detach any mark, label, or 

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1 tions thereunder, to appear on, or be affixed to, any pack2 age of cannabis products before such package is emptied. 

3 ‘‘SEC. 5915. RESTRICTION ON IMPORTATION OF PRE4 VIOUSLY EXPORTED CANNABIS PRODUCTS. 

5 ‘‘(a) EXPORT LABELED CANNABIS PRODUCTS.— 

6 ‘‘(1) IN GENERAL.—Cannabis products pro7 duced in the United States and labeled for expor8 tation under this chapter— 

9 ‘‘(A) may be transferred to or removed 

10 from the premises of a producer or an export 

11 warehouse proprietor only if such articles are 

12 being transferred or removed without tax in ac13 cordance with section 5904, 

14 ‘‘(B) may be imported or brought into the 

15 United States, after their exportation, only if 

16 such articles either are eligible to be released 

17 from customs custody with the partial duty ex18 emption provided in section 5904(d) or are re19 turned to the original producer of such article 

20 as provided in section 5904(c), and 

21 ‘‘(C) may not be sold or held for sale for 

22 domestic consumption in the United States un23 less such articles are removed from their export 

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1 ducer into new packaging that does not contain 

2 an export label. 

3 ‘‘(2) ALTERATIONS BY PERSONS OTHER THAN

4 ORIGINAL PRODUCER.—This section shall apply to 

5 articles labeled for export even if the packaging or 

6 the appearance of such packaging to the consumer 

7 of such articles has been modified or altered by a 

8 person other than the original producer so as to re9 move or conceal or attempt to remove or conceal (in10 cluding by the placement of a sticker over) any ex11 port label. 

12 ‘‘(3) EXPORTS INCLUDE SHIPMENTS TO PUER13 TO RICO.—For purposes of this section, section 

14 5904(d), section 5921, and such other provisions as 

15 the Secretary may specify by regulations, references 

16 to exportation shall be treated as including a ref17 erence to shipment to the Commonwealth of Puerto 

18 Rico. 

19 ‘‘(b) EXPORT LABEL.—For purposes of this section, 

20 an article is labeled for export or contains an export label 

21 if it bears the mark, label, or notice required under section 

22 5904(b). 


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1 ‘‘Subchapter C—Penalties 

2 ‘‘SEC. 5921. CIVIL PENALTIES. 

3 ‘‘(a) OMITTING THINGS REQUIRED OR DOING

4 THINGS FORBIDDEN.—Whoever willfully omits, neglects, 

5 or refuses to comply with any duty imposed upon them 

6 by this chapter, or to do, or cause to be done, any of the 

7 things required by this chapter, or does anything prohib8 ited by this chapter, shall in addition to any other penalty 

9 provided in this title, be liable to a penalty of $10,000, 

10 to be recovered, with costs of suit, in a civil action, except 

11 where a penalty under subsection (b) or (c) or under sec12 tion 6651 or 6653 or part II of subchapter A of chapter 

13 68 may be collected from such person by assessment. 

14 ‘‘(b) FAILURE TO PAY TAX.—Whoever fails to pay 

15 any tax imposed by this chapter at the time prescribed 

16 by law or regulations, shall, in addition to any other pen17 alty provided in this title, be liable to a penalty of 10 per18 cent of the tax due but unpaid. 

19 ‘‘(c) SALE OF CANNABIS OR CANNABIS PRODUCTS

20 FOR EXPORT.—Every person who— 

21 ‘‘(1) sells, relands, or receives within the juris22 diction of the United States any cannabis products 

23 that have been labeled or shipped for exportation 

24 under this chapter, 


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1 ‘‘(2) sells or receives such relanded cannabis 

2 products, or 

3 ‘‘(3) aids or abets in such selling, relanding, or 

4 receiving, 

5 shall, in addition to the tax and any other penalty provided 

6 in this title, be liable for a penalty equal to the greater 

7 of $10,000 or 10 times the amount of the tax imposed 

8 by this chapter. All cannabis products relanded within the 

9 jurisdiction of the United States shall be forfeited to the 

10 United States and destroyed. All vessels, vehicles, and air11 craft used in such relanding or in removing such cannabis 

12 products from the place where relanded, shall be forfeited 

13 to the United States. 

14 ‘‘(d) APPLICABILITY OF SECTION 6665.—The pen15 alties imposed by subsections (b) and (c) shall be assessed, 

16 collected, and paid in the same manner as taxes, as pro17 vided in section 6665(a). 

18 ‘‘(e) CROSS REFERENCES.—For penalty for failure to 

19 make deposits or for overstatement of deposits, see section 

20 6656. 

21 ‘‘(f) FRAUDULENT OFFENSES.—Whoever, with in22 tent to defraud the United States— 

23 ‘‘(1) engages in business as a cannabis business 

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1 mit where required by this chapter or regulations 

2 thereunder, 

3 ‘‘(2) fails to keep or make any record, return, 

4 report, or inventory, or keeps or makes any false or 

5 fraudulent record, return, report, or inventory, re6 quired by this chapter or regulations thereunder, 

7 ‘‘(3) refuses to pay any tax imposed by this 

8 chapter, or attempts in any manner to evade or de9 feat the tax or the payment thereof, 

10 ‘‘(4) sells or otherwise transfers, contrary to 

11 this chapter or regulations thereunder, any cannabis 

12 products subject to tax under this chapter, or 

13 ‘‘(5) purchases, receives, or possesses, with in14 tent to redistribute or resell, any cannabis product— 

15 ‘‘(A) upon which the tax has not been paid 

16 or determined in the manner and at the time 

17 prescribed by this chapter or regulations there18 under, or 

19 ‘‘(B) that, without payment of tax pursu20 ant to section 5904, have been diverted from 

21 the applicable purpose or use specified in that 

22 section, shall, for each such offense, be fined 

23 not more than $10,000, or imprisoned not more 

24 than 5 years, or both. 


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1 ‘‘(g) LIABILITY TO TAX.—Any person who possesses 

2 cannabis products in violation of subsection (f) shall be 

3 liable for a tax equal to the tax on such articles.’’. 

4 SEC. 503. REPORTS AND CONFORMING AMENDMENTS. 

5 (a) MARKET STUDY.—Not later than 2 years after 

6 the date of the enactment of this Act, and every 5 years 

7 thereafter, the Secretary of the Treasury, or the Sec8 retary’s delegate, shall— 

9 (1) conduct a study concerning the characteris10 tics of the cannabis industry, including the number 

11 of persons operating cannabis businesses at each 

12 level of such industry, the volume of sales, the 

13 amount of tax collected each year, and the areas of 

14 evasion; and 

15 (2) submit to Congress recommendations to im16 prove the regulation of the industry and the admin17 istration of the related tax. 

18 (b) CROSS-POLLINATION PREVENTION STUDY.—Not 

19 later than 1 year after the date of the enactment of this 

20 Act, the United States Department of Agriculture shall 

21 conduct a study on the risk and actual frequency of cross22 pollination between hemp (as defined in section 297(A) of 

23 the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o)) 

24 and raw cannabis (as defined in section 202(c) of this 

25 Act), and shall publish its findings in a Report to the 


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1 House Agricultural Committee and the Senate Committee 

2 on Agriculture, Nutrition, and Forestry. 

3 (c) ANNUAL REPORTS REGARDING DETERMINATION

4 OF APPLICABLE RATES.—Not later than 6 months before 

5 the beginning of each calendar year to which section 

6 5901(a)(2) of the Internal Revenue Code of 1986 (as 

7 added by this section) applies, the Secretary of the Treas8 ury, or the Secretary’s delegate, shall make publicly avail9 able a detailed description of the methodology that the 

10 Secretary anticipates using to determine the applicable ex11 cise tax rates that will apply for such calendar year under 

12 section 5901(c)(2) of such Code. 

13 (d) CONFORMING AMENDMENTS.— 

14 (1) Section 6103(o)(1)(A) of the Internal Rev15 enue Code of 1986 is amended by striking ‘‘and fire16 arms’’ and inserting ‘‘firearms, and cannabis prod17 ucts’’. 

18 (2) The table of chapters for subtitle E of the 

19 Internal Revenue Code of 1986 is amended by add20 ing at the end the following new chapter: 

‘‘CHAPTER 56. CANNABIS PRODUCTS’’. 

21 (e) EFFECTIVE DATE.— 

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

23 this section shall apply to sales, and applications for 

24 permits under section 5912 of the Internal Revenue 


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1 Code of 1986 (as added by subsection (a)), after 

2 180 days after the date of the enactment of this Act. 

3 (2) SPECIAL RULES FOR EXISTING BUSI4 NESSES.—In the case of any producer operating 

5 under a permit issued on or before the date of the 

6 enactment of this Act under State law, the require7 ments under section 5912 of such Code (as so 

8 added) shall apply beginning on the date that is 6 

9 months after the date of the enactment of this Act. 

10 (3) ESTABLISHMENT OF LAW ENFORCEMENT

11 RETRAINING AND SUCCESSFUL SECOND CHANCES

12 FUND.—The amendments made by subsection (a) 

13 shall take effect on the date of enactment of this 

14 Act. 

15 TITLE VI—VETERANS’ CARE AND 

16 ACCESS 

17 SEC. 601. NONDISCRIMINATION IN FEDERAL HIRING FOR 

18 VETERAN MEDICAL CANNABIS USERS. 

19 (a) IN GENERAL.—It shall be unlawful for a ‘‘vet20 eran’’, as defined in section 101(2) of title 38, United 

21 States Code, to be excluded from employment in the Fed22 eral Government solely because the veteran consumes or 

23 has consumed cannabis, as defined in section 102(16) of 

24 the Controlled Substances Act (21 U.S.C. 802(16)). For 

25 the purposes determining if a person is a veteran under 


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1 this provision, an other than honorable, bad conduct, or 

2 dishonorable release premised solely on nonviolent can3 nabis charges covered under section 101 of the States Re4 form Act shall be construed as a general discharge. 

5 SEC. 602. AUTHORIZED PROVISION OF INFORMATION ON 

6 STATE-APPROVED MARIJUANA PROGRAMS 

7 TO VETERANS. 

8 (a) AUTHORIZED PROVISION OF INFORMATION.— 

9 Notwithstanding the provisions of the Controlled Sub10 stances Act (21 U.S.C. 801 et seq.) or any other Federal, 

11 State, or local law regulating or prohibiting the provision 

12 of information on marijuana, the Secretary of Veterans 

13 Affairs shall authorize physicians and other health care 

14 providers of the Veterans Health Administration of the 

15 Department of Veterans Affairs to provide to veterans who 

16 are residents of States with State-approved marijuana 

17 programs information regarding the participation of such 

18 veterans in such programs, recommend their participation 

19 in such programs or use of FDA-approved or designated 

20 State medical cannabis products (within the meaning of 

21 part J of subchapter V of chapter 9 of title 21 of the 

22 United States Code (the Federal Food, Drug, and Cos23 metic Act)) as part of a course of Veterans Affairs treat24 ment, or prescribe the use of FDA-approved or designated 

25 State medical cannabis products (within the meaning of 


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1 part J of subchapter V of chapter 9 of title 21 of the 

2 United States Code (the Federal Food, Drug, and Cos3 metic Act)). 

4 (b) DEFINITIONS.—In this section: 

5 (1) INFORMATION.—The term ‘‘information’’ 

6 includes details such as informational materials, 

7 internet websites, and relevant contact information 

8 for State-approved marijuana programs. 

9 (2) MARIJUANA.—The term ‘‘marijuana’’ has 

10 the meaning given the term ‘‘marihuana’’ in section 

11 102 of the Controlled Substances Act (21 U.S.C. 

12 802). 

13 (3) STATE.—The term ‘‘State’’ means each of 

14 the several States, the District of Columbia, the 

15 Commonwealth of Puerto Rico, any territory, Fed16 eral enclave, or possession of the United States, and 

17 each federally recognized Indian Tribe. 

18 TITLE VII—MISCELLANEOUS UP19 DATES AND TECHNICAL 

20 AMENDMENTS 

21 SEC. 701. UNITED STATES INTERNATIONAL CANNABIS COM22 MERCE POLICY. 

23 (a) UNITED STATES FOREIGN POLICY OBJECTIVES

24 WITH RESPECT TO CANNABIS.— 


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1 (1) The President of the United States and the 

2 United States Trade Representative shall send trade 

3 missions and engage in treaty-making with foreign 

4 jurisdictions that have legalized the import and ex5 port of cannabis to provide for the legal trade be6 tween the United States and foreign jurisdictions. 

7 (2) The principal negotiating objectives of the 

8 United States with respect to trade shall include the 

9 removal of unjustified foreign barriers to trade in 

10 cannabis, cannabis derivatives, and cannabis prod11 ucts. 

12 (3) The United Nations Ambassador is tasked 

13 with similarly ensuring updates to international ac14 cords to reflect current practices. 

15 (b) RULE OF CONSTRUCTION FOR INTERNATIONAL

16 TREATIES RESPECTING DRUG POLICY; FEDERAL PRI17 MACY ON SCHEDULING DECISIONS.—It is the policy of the 

18 United States that the power of the Federal Government 

19 to control, alter, heighten, lower, abolish, decontrol, or 

20 likewise modify drug control scheduling for any particular 

21 substance, including cannabis, is a vested power of the ar22 ticle I constitutional lawmaking power that no treaty, in23 cluding the 1961 Single Convention on Narcotic Drugs, 

24 the 1971 Convention on Psychotropic Substances, 1972 

25 Protocol Amending the Single Convention on Narcotic 


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1 Drugs, and the 1988 United Nations Convention Against 

2 Illicit Traffic in Narcotic Drugs and Psychotropic Sub3 stances, may infringe upon, oblige or impose a duty on 

4 the United States not to undertake at its pleasure, or oth5 erwise modify. This provision shall constitute a rule of 

6 construction for all Federal courts to apply in all cases. 

7 SEC. 702. CONTINUED FEDERAL EMPLOYEE DRUG TESTING. 

8 (a) SPECIAL RULE FOR FEDERAL EMPLOYEE TEST9 ING.—Section 503 of the Supplemental Appropriations 

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

11 the end the following: 

12 ‘‘(h) CANNABIS.— 

13 ‘‘(1) CONTINUED TESTING.—Notwithstanding 

14 the States Reform Act and the amendments made 

15 thereby, the Secretary of Health and Human Serv16 ices may continue to include cannabis for purposes 

17 of drug testing of Federal employees subject to Ex18 ecutive Order 12564, or other applicable Federal 

19 laws and orders. 

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

21 the meaning given to the term ‘marihuana’ in sec22 tion 102 of the Controlled Substances Act (21 

23 U.S.C. 802).’’. 

24 (b) SPECIAL RULE FOR CERTAIN REGULATIONS.— 

25 The amendments made by this section may not be conVerDate Sep 11 2014 23:29 Nov 07, 2023 Jkt 049200 PO 00000 Frm 00138 Fmt 6652 Sfmt 6201 E:\BILLS\H6028.IH H6028

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1 strued to abridge the authority of the Secretary of Trans2 portation, or the Secretary of the department in which the 

3 Coast Guard is operating, to regulate and screen for the 

4 use of cannabis or a controlled substance within the mean5 ing of section 102 of the Controlled Substances Act (21 

6 U.S.C. 802). 

7 SEC. 703. DEMOGRAPHIC DATA ON NEW INDUSTRY OF CAN8 NABIS BUSINESS OWNERS AND EMPLOYEES. 

9 (a) IN GENERAL.—The Bureau of Labor Statistics 

10 shall regularly compile, maintain, and make public data 

11 on the demographics of— 

12 (1) individuals who are business owners in the 

13 cannabis industry; and 

14 (2) individuals who are employed in the can15 nabis industry. 

16 (b) DEMOGRAPHIC DATA.—The data collected under 

17 subsection (a) shall include data regarding— 

18 (1) age; 

19 (2) certifications and licenses; 

20 (3) disability status; 

21 (4) educational attainment; 

22 (5) family and marital status; 

23 (6) nativity; 

24 (7) race and Hispanic ethnicity; 

25 (8) school enrollment; 


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1 (9) veteran status; and 

2 (10) sex. 

3 (c) CONFIDENTIALITY.—The name, address, and 

4 other identifying information of individuals employed in 

5 the cannabis industry shall be kept confidential by the Bu6 reau and not be made available to the public. 

7 (d) DEFINITIONS.—In this section: 

8 (1) CANNABIS.—The term ‘‘cannabis’’ means 

9 either ‘‘marihuana’’, as defined in section 102 of the 

10 Controlled Substances Act (21 U.S.C. 802), or ‘‘can11 nabis’’, as defined under the State law authorizing 

12 the sale or use of cannabis in which the individual 

13 or entity is located. 

14 (2) CANNABIS INDUSTRY.—The term ‘‘cannabis 

15 industry’’ means an individual or entity that is li16 censed or permitted under a State or local law to en17 gage in commercial cannabis-related activity. 

18 (3) OWNER.—The term ‘‘owner’’ means an in19 dividual or entity that is defined as an owner under 

20 the State or local law where the individual or busi21 ness is licensed or permitted. 


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1 SEC. 704. CONFORMING AMENDMENT TO CREATE UNI2 FORMITY OF REFERENCES IN EXISTING LAW 

3 TO CANNABIS, MARIJUANA, OR MARIHUANA. 

4 Wherever, in the statutes of the United States or in 

5 the rulings, regulations, or interpretations of various ad6 ministrative bureaus and agencies of the United States— 

7 (1) there appears or may appear the term 

8 ‘‘marihuana’’ or ‘‘marijuana’’, that term shall be 

9 struck and the term ‘‘cannabis’’ shall be inserted; 

10 and 

11 (2) there appears or may appear the term 

12 ‘‘Marihuana’’ or ‘‘Marijuana’’, that term shall be 

13 struck and the term ‘‘Cannabis’’ shall be inserted. 

14 SEC. 705. SECURITY CLEARANCES. 

15 (a) SECURITY CLEARANCES.—Federal agencies must 

16 treat past or present cannabis use like alcohol, and not 

17 a schedule I substance, in rendering decisions for grant18 ing, denying, or rescinding a security clearance. 

19 (b) REASSESSMENT.— 

20 (1) IN GENERAL.—An individual shall be enti21 tled to reassessment of their security clearance 

22 credentialing by mailing a certified letter requesting 

23 notice of entitlement of reassessment of denial of 

24 such under this section 705 to the General Counsel 

25 or chief legal officer of the denying Federal agency. 


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1 (2) NOTICE.—An individual requesting reas2 sessment notice under paragraph (1) shall be noti3 fied either of their entitlement to such reassessment 

4 under paragraph (1), or denial of entitlement to re5 assessment, within 90 days of requesting such re6 view from the denying agency. Any such denial shall 

7 state that there are grounds under than solely past 

8 or present cannabis or marijuana use consistent with 

9 like use of alcohol under which the agency made the 

10 decision. 

11 (3) INDIVIDUAL DESCRIBED.—In this sub12 section, the term ‘‘individual described’’ means any 

13 individual who has had a security clearance denied 

14 or rescinded for past or present cannabis or mari15 juana use. 

16 (4) JUDICIAL REVIEW.—Failure to provide no17 tice of entitlement or non-entitlement is judicially re18 viewable after 180 days from the making of such re19 quest of an agency in the United States District 

20 Court for the Eastern District of Virginia. Upon 

21 finding of undue delay, the court shall enjoin the 

22 agency to make a decision and provide notice within 

23 30 days, and such other equitable relief as the court 

24 may see fit. 


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1 SEC. 706. EFFECTIVE UPON ENACTMENT. 

2 Except for the provisions made in section 101(d) of 

3 title I of this Act and throughout title V, this Act shall 

4 be considered effective as of its date of enactment. 

Æ 


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