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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3884 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 497
116th CONGRESS
  2d Session
                                H. R. 3884

                      [Report No. 116-604, Part I]

 To decriminalize and deschedule cannabis, to provide for reinvestment 
 in certain persons adversely impacted by the War on Drugs, to provide 
 for expungement of certain cannabis offenses, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 2019

  Mr. Nadler (for himself, Ms. Lee of California, Mr. Blumenauer, Mr. 
   Jeffries, Ms. Velazquez, Mr. Gaetz, Mr. Cicilline, Mr. Cohen, Mr. 
    Correa, Ms. Dean, Mr. Deutch, Ms. Escobar, Ms. Jackson Lee, Ms. 
   Jayapal, Mr. Johnson of Georgia, Mr. Ted Lieu of California, Ms. 
    Lofgren, Mr. Raskin, Mr. Swalwell of California, Mr. Evans, Ms. 
   Gabbard, Ms. Haaland, Mr. Huffman, Mr. Khanna, Mr. McGovern, Ms. 
   Norton, Mr. Perlmutter, Ms. Pressley, Ms. Waters, and Mrs. Watson 
   Coleman) introduced the following bill; which was referred to the 
Committee on the Judiciary, and in addition to the Committees on Energy 
 and Commerce, Agriculture, Education and Labor, Ways and Means, Small 
Business, Natural Resources, and Oversight and Reform, 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

                           November 27, 2020

  Additional sponsors: Ms. Scanlon, Mr. Horsford, Ms. Schakowsky, Mr. 
   DeFazio, Mrs. Luria, Mr. Neguse, Mr. Espaillat, Mr. Gallego, Mr. 
 Grijalva, Mr. Pocan, Mr. Lujan, Ms. Pingree, Ms. Titus, Mr. Morelle, 
 Mr. Meeks, Mr. Carbajal, Ms. Tlaib, Mr. Rush, Mr. Clay, Mr. Heck, Mr. 
 Garcia of Illinois, Mr. Cardenas, Mr. Danny K. Davis of Illinois, Ms. 
 DelBene, Mr. Sherman, Mr. Soto, Mr. Levin of Michigan, Mr. Hastings, 
Ms. Kelly of Illinois, Ms. Wilson of Florida, Mr. Doggett, Mr. Thompson 
     of Mississippi, Mr. Beyer, Ms. Fudge, Mr. Brendan F. Boyle of 
  Pennsylvania, Mr. Lowenthal, Mr. Foster, Mr. Kennedy, Ms. Meng, Ms. 
DeGette, Mr. Panetta, Mrs. Lawrence, Mr. Engel, Mr. Trone, Mr. Michael 
F. Doyle of Pennsylvania, Ms. Craig, Miss Rice of New York, Ms. Clarke 
 of New York, Ms. Blunt Rochester, Mr. Phillips, Ms. Porter, Ms. Clark 
   of Massachusetts, Ms. Omar, Mr. Welch, Mr. Cox of California, Ms. 
 Speier, Mrs. Kirkpatrick, Mr. Payne, Mr. Larson of Connecticut, Mrs. 
Hayes, Mr. Brown of Maryland, Mr. Courtney, Mrs. Carolyn B. Maloney of 
 New York, Mrs. Trahan, Mr. Moulton, Mr. Crist, Mr. Gonzalez of Texas, 
     Mr. Yarmuth, Mr. Kildee, Mr. Scott of Virginia, Mr. Levin of 
 California, Mr. Connolly, Mr. Price of North Carolina, Mr. Gomez, Ms. 
  Davids of Kansas, Ms. Ocasio-Cortez, Mrs. Torres of California, Mr. 
 David Scott of Georgia, Ms. Brownley of California, Mr. San Nicolas, 
Ms. Castor of Florida, Mr. Crow, Ms. Bonamici, Mr. Castro of Texas, Ms. 
DeLauro, Mr. Takano, Mr. Aguilar, Ms. Adams, Ms. McCollum, Mr. Veasey, 
                          and Mr. Butterfield

                           November 27, 2020

     Reported from the Committee on the Judiciary with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                           November 27, 2020

  Committees on Energy and Commerce, Agriculture, Education and Labor, 
 Ways and Means, Small Business, Natural Resources, and Oversight and 
Reform discharged; committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
 [For text of introduced bill, see copy of bill as introduced on July 
                               23, 2019]

_______________________________________________________________________

                                 A BILL

 
 To decriminalize and deschedule cannabis, to provide for reinvestment 
 in certain persons adversely impacted by the War on Drugs, to provide 
 for expungement of certain cannabis offenses, and for other purposes.

 

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Marijuana Opportunity Reinvestment 
and Expungement Act of 2019'' or the ``MORE Act of 2019''.

SEC. 2. FINDINGS.

    The Congress finds as follows:
            (1) The communities that have been most harmed by cannabis 
        prohibition are benefiting the least from the legal marijuana 
        marketplace.
            (2) A legacy of racial and ethnic injustices, compounded by 
        the disproportionate collateral consequences of 80 years of 
        cannabis prohibition enforcement, now limits participation in 
        the industry.
            (3) 33 States, the District of Columbia, Puerto Rico, and 
        Guam have adopted laws allowing legal access to cannabis, and 
        11 States, the District of Columbia, and the Commonwealth of 
        the Northern Mariana Islands have adopted laws legalizing 
        cannabis for adult recreational use.
            (4) A total of 47 States have reformed their laws 
        pertaining to cannabis despite the Schedule I status of 
        marijuana and its Federal criminalization.
            (5) Legal cannabis sales totaled $9.5 billion in 2017 and 
        are projected to reach $23 billion by 2022.
            (6) According to the American Civil Liberties Union (ACLU), 
        enforcing cannabis prohibition laws costs taxpayers 
        approximately $3.6 billion a year.
            (7) The continued enforcement of cannabis prohibition laws 
        results in over 600,000 arrests annually, disproportionately 
        impacting people of color who are almost 4 times more likely to 
        be arrested for cannabis possession than their White 
        counterparts, despite equal rates of use across populations.
            (8) People of color have been historically targeted by 
        discriminatory sentencing practices resulting in Black men 
        receiving drug sentences that are 13.1 percent longer than 
        sentences imposed for White men and Latinos being nearly 6.5 
        times more likely to receive a Federal sentence for cannabis 
        possession than non-Hispanic Whites.
            (9) In 2013, simple cannabis possession was the fourth most 
        common cause of deportation for any offense and the most common 
        cause of deportation for drug law violations.
            (10) Fewer than one-fifth of cannabis business owners 
        identify as minorities and only approximately 4 percent are 
        black.
            (11) Applicants for cannabis licenses are limited by 
        numerous laws, regulations, and exorbitant permit applications, 
        licensing fees, and costs in these States, which can require 
        more than $700,000.
            (12) Historically disproportionate arrest and conviction 
        rates make it particularly difficult for people of color to 
        enter the legal cannabis marketplace, as most States bar these 
        individuals from participating.
            (13) Federal law severely limits access to loans and 
        capital for cannabis businesses, disproportionately impacting 
        minority small business owners.
            (14) Some States and municipalities have taken proactive 
        steps to mitigate inequalities in the legal cannabis 
        marketplace and ensure equal participation in the industry.

SEC. 3. DECRIMINALIZATION OF CANNABIS.

    (a) Cannabis Removed From Schedule of Controlled Substances.--
            (1) Removal in statute.--Subsection (c) of schedule I of 
        section 202(c) of the Controlled Substances Act (21 U.S.C. 812) 
        is amended--
                    (A) by striking ``(10) Marihuana.''; and
                    (B) by striking ``(17) Tetrahydrocannabinols, 
                except for tetrahydrocannabinols in hemp (as defined in 
                section 297A of the Agricultural Marketing Act of 
                1946).''.
            (2) Removal from schedule.--Not later than 180 days after 
        the date of the enactment of this Act, the Attorney General 
        shall finalize a rulemaking under section 201(a)(2) removing 
        marihuana and tetrahydrocannabinols from the schedules of 
        controlled substances. Marihuana and tetrahydrocannabinols 
        shall each be deemed to be a drug or other substance that does 
        not meet the requirements for inclusion in any schedule. A 
        rulemaking under this paragraph shall be considered to have 
        taken effect as of the date of enactment of this Act for 
        purposes of any offense committed, case pending, conviction 
        entered, and, in the case of a juvenile, any offense committed, 
        case pending, and adjudication of juvenile delinquency entered 
        before, on, or after the date of enactment of this Act.
    (b) Conforming Amendments to Controlled Substances Act.--The 
Controlled Substances Act (21 U.S.C. 801 et seq.) is amended--
            (1) in section 102(44) (21 U.S.C. 802(44)), by striking 
        ``marihuana,'';
            (2) in section 401(b) (21 U.S.C. 841(b))--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) in clause (vi), by inserting 
                                ``or'' after the semicolon;
                                    (II) by striking clause (vii); and
                                    (III) by redesignating clause 
                                (viii) as clause (vii);
                            (ii) in subparagraph (B)--
                                    (I) in clause (vi), by inserting 
                                ``or'' after the semicolon;
                                    (II) by striking clause (vii); and
                                    (III) by redesignating clause 
                                (viii) as clause (vii);
                            (iii) in subparagraph (C), in the first 
                        sentence, by striking ``subparagraphs (A), (B), 
                        and (D)'' and inserting ``subparagraphs (A) and 
                        (B)'';
                            (iv) by striking subparagraph (D);
                            (v) by redesignating subparagraph (E) as 
                        subparagraph (D); and
                            (vi) in subparagraph (D)(i), as so 
                        redesignated, by striking ``subparagraphs (C) 
                        and (D)'' and inserting ``subparagraph (C)'';
                    (B) by striking paragraph (4); and
                    (C) by redesignating paragraphs (5), (6), and (7) 
                as paragraphs (4), (5), and (6), respectively;
            (3) in section 402(c)(2)(B) (21 U.S.C. 842(c)(2)(B)), by 
        striking ``, marihuana,'';
            (4) in section 403(d)(1) (21 U.S.C. 843(d)(1)), by striking 
        ``, marihuana,'';
            (5) in section 418(a) (21 U.S.C. 859(a)), by striking the 
        last sentence;
            (6) in section 419(a) (21 U.S.C. 860(a)), by striking the 
        last sentence;
            (7) in section 422(d) (21 U.S.C. 863(d))--
                    (A) in the matter preceding paragraph (1), by 
                striking ``marijuana,''; and
                    (B) in paragraph (5), by striking ``, such as a 
                marihuana cigarette,''; and
            (8) in section 516(d) (21 U.S.C. 886(d)), by striking 
        ``section 401(b)(6)'' each place the term appears and inserting 
        ``section 401(b)(5)''.
    (c) Other Conforming Amendments.--
            (1) National forest system drug control act of 1986.--The 
        National Forest System Drug Control Act of 1986 (16 U.S.C. 559b 
        et seq.) is amended--
                    (A) in section 15002(a) (16 U.S.C. 559b(a)) by 
                striking ``marijuana and other'';
                    (B) in section 15003(2) (16 U.S.C. 559c(2)) by 
                striking ``marijuana and other''; and
                    (C) in section 15004(2) (16 U.S.C. 559d(2)) by 
                striking ``marijuana and other''.
            (2) Interception of communications.--Section 2516 of title 
        18, United States Code, is amended--
                    (A) in subsection (1)(e), by striking 
                ``marihuana,''; and
                    (B) in subsection (2) by striking ``marihuana''.
    (d) Retroactivity.--The amendments made by this section to the 
Controlled Substances Act (21 U.S.C. 801 et seq.) are retroactive and 
shall apply to any offense committed, case pending, conviction entered, 
and, in the case of a juvenile, any offense committed, case pending, or 
adjudication of juvenile delinquency entered before, on, or after the 
date of enactment of this Act.

SEC. 4. DEMOGRAPHIC DATA OF CANNABIS BUSINESS OWNERS AND EMPLOYEES.

    (a) In General.--The Bureau of Labor Statistics shall regularly 
compile, maintain, and make public data on the demographics of--
            (1) individuals who are business owners in the cannabis 
        industry; and
            (2) individuals who are employed in the cannabis industry.
    (b) Demographic Data.--The data collected under subsection (a) 
shall include data regarding--
            (1) age;
            (2) certifications and licenses;
            (3) disability status;
            (4) educational attainment;
            (5) family and marital status;
            (6) nativity;
            (7) race and Hispanic ethnicity;
            (8) school enrollment;
            (9) veteran status; and
            (10) sex.
    (c) Confidentiality.--The name, address, and other identifying 
information of individuals employed in the cannabis industry shall be 
kept confidential by the Bureau and not be made available to the 
public.
    (d) Definitions.--In this section:
            (1) Cannabis.--The term ``cannabis'' means either marijuana 
        or cannabis as defined under the State law authorizing the sale 
        or use of cannabis in which the individual or entity is 
        located.
            (2) Cannabis industry.--The term ``cannabis industry'' 
        means an individual or entity that is licensed or permitted 
        under a State or local law to engage in commercial cannabis-
        related activity.
            (3) Owner.--The term ``owner'' means an individual or 
        entity that is defined as an owner under the State or local law 
        where the individual or business is licensed or permitted.

SEC. 5. CREATION OF OPPORTUNITY TRUST FUND AND IMPOSITION OF TAX ON 
              CANNABIS PRODUCTS.

    (a) Trust Fund.--
            (1) Establishment.--Subchapter A of chapter 98 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new section:

``SEC. 9512. OPPORTUNITY TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Opportunity Trust 
Fund' (referred to in this section as the `Trust Fund'), consisting of 
such amounts as may be appropriated or credited to such fund as 
provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Trust Fund amounts equivalent to the net revenues received in the 
Treasury from the tax imposed by section 5701(h).
    ``(c) Expenditures.--Amounts in the Trust Fund shall be available, 
without further appropriation, only as follows:
            ``(1) 50 percent to the Attorney General to carry out 
        section 3052(a) of part OO of the Omnibus Crime Control and 
        Safe Streets Act of 1968.
            ``(2) 10 percent to the Attorney General to carry out 
        section 3052(b) of part OO of the Omnibus Crime Control and 
        Safe Streets Act of 1968.
            ``(3) 20 percent to the Administrator of the Small Business 
        Administration to carry out section 6(b)(1) of the Marijuana 
        Opportunity Reinvestment and Expungement Act of 2019.
            ``(4) 20 percent to the Administrator of the Small Business 
        Administration to carry out section 6(b)(2) of the Marijuana 
        Opportunity Reinvestment and Expungement Act of 2019.''.
            (2) Clerical amendment.--The table of sections for 
        subchapter A of chapter 98 of such Code is amended by adding at 
        the end the following new item:

``Sec. 9512. Opportunity trust fund.''.
    (b) Imposition of Tax.--
            (1) In general.--Section 5701 of the Internal Revenue Code 
        of 1986 is amended by redesignating subsection (h) as 
        subsection (i) and by inserting after subsection (g) the 
        following new subsection:
    ``(h) Cannabis Products.--On cannabis products, manufactured in or 
imported into the United States, there shall be imposed a tax equal to 
5 percent of the price for which sold.''.
            (2) Cannabis product defined.--Section 5702 of such Code is 
        amended by adding at the end the following new subsection:
    ``(q) Cannabis Product.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        term `cannabis product' means any cannabis or any article which 
        contains cannabis or any derivative thereof.
            ``(2) Exception.--The term `cannabis product' shall not 
        include any medicine or drug that is a prescribed drug (as such 
        term is defined in section 213(d)(3)).
            ``(3) Cannabis.--The term `cannabis'--
                    ``(A) means all parts of the plant Cannabis sativa 
                L., whether growing or not; the seeds thereof; the 
                resin extracted from any part of such plant; and every 
                compound, manufacture, salt, derivative, mixture, or 
                preparation of such plant, its seeds or resin; and
                    ``(B) does not include--
                            ``(i) hemp, as defined in section 297A of 
                        the Agricultural Marketing Act of 1946; or
                            ``(ii) the mature stalks of such plant, 
                        fiber produced from such stalks, oil or cake 
                        made from the seeds of such plant, any other 
                        compound, manufacture, salt, derivative, 
                        mixture, or preparation of such mature stalks 
                        (except the resin extracted therefrom), fiber, 
                        oil, or cake, or the sterilized seed of such 
                        plant which is incapable of germination.''.
            (3) Cannabis products treated as tobacco products.--Section 
        5702(c) of such Code is amended by striking ``and roll-your-own 
        tobacco'' and inserting ``roll-your-own tobacco, and cannabis 
        products''.
            (4) Manufacturer of cannabis products treated as 
        manufacturer of tobacco products.--Section 5702 of such Code is 
        amended by adding at the end the following new subsection:
    ``(r) Manufacturer of Cannabis Products.--
            ``(1) In general.--Any person who plants, cultivates, 
        harvests, produces, manufactures, compounds, converts, 
        processes, prepares, or packages any cannabis product shall be 
        treated as a manufacturer of cannabis products (and as 
        manufacturing such cannabis product).
            ``(2) Exception.--Paragraph (1) shall not apply with 
        respect to any cannabis product which is for such person's own 
        personal consumption or use.
            ``(3) Application of rules related to manufacturers of 
        tobacco products.--Any reference to a manufacturer of tobacco 
        products, or to manufacturing tobacco products, shall be 
        treated as including a reference to a manufacturer of cannabis 
        products, or to manufacturing cannabis products, 
        respectively.''.
            (5) Application of certain rules for determining price.--
        Section 5702(l) of such Code is amended--
                    (A) by striking ``section 5701(a)(2)'' and 
                inserting ``subsections (a)(2) and (h) of section 
                5701''; and
                    (B) by inserting ``and Cannabis Products'' after 
                ``Cigars'' in the heading thereof.
            (6) Conforming amendment.--Section 5702(j) of such Code is 
        amended by adding at the end the following new sentence: ``In 
        the case of a cannabis product, the previous sentence shall be 
        applied by substituting `from a facility of a manufacturer 
        required to file a bond under section 5711' for `from the 
        factory or from internal revenue bond under section 5704'.''.
    (c) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        articles manufactured or imported in calendar quarters 
        beginning more than one year after the date of the enactment of 
        this Act.
            (2) Trust fund.--The amendments made by subsection (a) 
        shall take effect on the date of the enactment of this Act.

SEC. 6. OPPORTUNITY TRUST FUND PROGRAMS.

    (a) Cannabis Justice Office; Community Reinvestment Grant 
Program.--
            (1) Cannabis justice office.--Part A of title I of the 
        Omnibus Crime Control and Safe Streets Act of 1968 (34 U.S.C. 
        10101 et seq.) is amended by inserting after section 109 the 
        following:

``SEC. 110. CANNABIS JUSTICE OFFICE.

    ``(a) Establishment.--There is established within the Office of 
Justice Programs a Cannabis Justice Office.
    ``(b) Director.--The Cannabis Justice Office shall be headed by a 
Director who shall be appointed by the Assistant Attorney General for 
the Office of Justice Programs. The Director shall report to the 
Assistant Attorney General for the Office of Justice Programs. The 
Director shall award grants and may enter into compacts, cooperative 
agreements, and contracts on behalf of the Cannabis Justice Office. The 
Director may not engage in any employment other than that of serving as 
the Director, nor may the Director hold any office in, or act in any 
capacity for, any organization, agency, or institution with which the 
Office makes any contract or other arrangement.
    ``(c) Employees.--
            ``(1) In general.--The Director shall employ as many full-
        time employees as are needed to carry out the duties and 
        functions of the Cannabis Justice Office under subsection (d). 
        Such employees shall be exclusively assigned to the Cannabis 
        Justice Office.
            ``(2) Initial hires.--Not later than 6 months after the 
        date of enactment of this section, the Director shall--
                    ``(A) hire no less than one-third of the total 
                number of employees of the Cannabis Justice Office; and
                    ``(B) no more than one-half of the employees 
                assigned to the Cannabis Justice Office by term 
                appointment that may after 2 years be converted to 
                career appointment.
            ``(3) Legal counsel.--At least one employee hired for the 
        Cannabis Justice Office shall serve as legal counsel to the 
        Director and shall provide counsel to the Cannabis Justice 
        Office.
    ``(d) Duties and Functions.--The Cannabis Justice Office is 
authorized to--
            ``(1) administer the Community Reinvestment Grant Program; 
        and
            ``(2) perform such other functions as the Assistant 
        Attorney General for the Office of Justice Programs may 
        delegate, that are consistent with the statutory obligations of 
        this section.''.
            (2) Community reinvestment grant program.--Title I of the 
        Omnibus Crime Control and Safe Streets Act of 1968 (34 U.S.C. 
        et seq.) is amended by adding at the end the following:

            ``PART OO--COMMUNITY REINVESTMENT GRANT PROGRAM

``SEC. 3052. AUTHORIZATION.

    ``(a) In General.--The Director of the Cannabis Justice Office 
shall establish and carry out a grant program, known as the `Community 
Reinvestment Grant Program', to provide eligible entities with funds to 
administer services for individuals most adversely impacted by the War 
on Drugs, including--
            ``(1) job training;
            ``(2) reentry services;
            ``(3) legal aid for civil and criminal cases, including 
        expungement of cannabis convictions;
            ``(4) literacy programs;
            ``(5) youth recreation or mentoring programs;
            ``(6) health education programs; and
            ``(7) services to address any collateral consequences that 
        individuals or communities face as a result of the War on 
        Drugs.
    ``(b) Substance Use Treatment Services.--The Community Reinvestment 
Grant Program established in subsection (a) shall provide eligible 
entities with funds to administer substance use treatment services for 
individuals most adversely impacted by the War on Drugs.

``SEC. 3053. FUNDING FROM OPPORTUNITY TRUST FUND.

    ``The Director shall carry out the program under this part using 
funds made available under section 9512(c)(1) and (2) of the Internal 
Revenue Code.

``SEC. 3054. DEFINITIONS.

    ``In this part:
            ``(1) The term `cannabis conviction' means a conviction, or 
        adjudication of juvenile delinquency, for a cannabis offense 
        (as such term is defined in section 13 of the Marijuana 
        Opportunity Reinvestment and Expungement Act of 2019).
            ``(2) The term `substance use treatment' means an evidence-
        based, professionally directed, deliberate, and planned regimen 
        including evaluation, observation, medical monitoring, harm 
        reduction, and rehabilitative services and interventions such 
        as pharmacotherapy, mental health services, and individual and 
        group counseling, on an inpatient or outpatient basis, to help 
        patients with substance use disorder reach remission and 
        maintain recovery.
            ``(3) The term `eligible entity' means a nonprofit 
        organization, as defined in section 501(c)(3) of the Internal 
        Revenue Code, that is representative of a community or a 
        significant segment of a community with experience in providing 
        relevant services to individuals most adversely impacted by the 
        War on Drugs in that community.
            ``(4) The term `individuals most adversely impacted by the 
        War on Drugs' has the meaning given that term in section 6 of 
        the Marijuana Opportunity Reinvestment and Expungement Act of 
        2019.''.
    (b) Cannabis Opportunity Program; Equitable Licensing Grant 
Program.--
            (1) Cannabis opportunity program.--The Administrator of the 
        Small Business Administration shall establish and carry out a 
        program, to be known as the ``Cannabis Opportunity Program'' to 
        provide any eligible State or locality funds to make loans 
        under section 7(m) of the Small Business Act (15 U.S.C. 363(m)) 
        to assist small business concerns owned and controlled by 
        socially and economically disadvantaged individuals, as defined 
        in section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 
        637(d)(3)(C)) that operate in the cannabis industry.
            (2) Equitable licensing grant program.--The Administrator 
        of the Small Business Administration shall establish and carry 
        out a grant program, to be known as the ``Equitable Licensing 
        Grant Program'', to provide any eligible State of locality 
        funds to develop and implement equitable cannabis licensing 
        programs that minimize barriers to cannabis licensing and 
        employment for individuals most adversely impacted by the War 
        on Drugs, provided that each grantee includes in its cannabis 
        licensing program at least four of the following:
                    (A) A waiver of cannabis license application fees 
                for individuals who have had an income below 250 
                percent of the Federal Poverty Level for at least 5 of 
                the past 10 years who are first-time applicants.
                    (B) A prohibition on the denial of a cannabis 
                license based on a conviction for a cannabis offense 
                that took place prior to State legalization of cannabis 
                or the date of enactment of this Act, as appropriate.
                    (C) A prohibition on criminal conviction 
                restrictions for licensing except with respect to a 
                conviction related to owning and operating a business.
                    (D) A prohibition on cannabis license holders 
                engaging in suspicionless cannabis drug testing of 
                their prospective or current employees, except with 
                respect to drug testing for safety-sensitive positions, 
                as defined under the Omnibus Transportation Testing Act 
                of 1991.
                    (E) The establishment of a cannabis licensing board 
                that is reflective of the racial, ethnic, economic, and 
                gender composition of the State or locality, to serve 
                as an oversight body of the equitable licensing 
                program.
            (3) Definitions.--In this subsection:
                    (A) The term ``individual most adversely impacted 
                by the War on Drugs'' means an individual--
                            (i) who has had an income below 250 percent 
                        of the Federal Poverty Level for at least 5 of 
                        the past 10 years; and
                            (ii) has been arrested for or convicted of 
                        the sale, possession, use, manufacture, or 
                        cultivation of cannabis or a controlled 
                        substance (except for a conviction involving 
                        distribution to a minor), or whose parent, 
                        sibling, spouse, or child has been arrested for 
                        or convicted of such an offense.
                    (B) The term ``eligible State or locality'' means a 
                State or locality that has taken steps to--
                            (i) create an automatic process, at no cost 
                        to the individual, for the expungement, 
                        destruction, or sealing of criminal records for 
                        cannabis offenses; and
                            (ii) eliminate violations or other 
                        penalties for persons under parole, probation, 
                        pre-trial, or other State or local criminal 
                        supervision for a cannabis offense.
                    (C) The term ``State'' means each of the several 
                States, the District of Columbia, Puerto Rico, any 
                territory or possession of the United States, and any 
                Indian Tribe (as defined in section 201 of Public Law 
                90-294 (25 U.S.C. 1301) (commonly known as the ``Indian 
                Civil Rights Act of 1968'')).

SEC. 7. AVAILABILITY OF SMALL BUSINESS ADMINISTRATION PROGRAMS AND 
              SERVICES TO CANNABIS-RELATED LEGITIMATE BUSINESSES AND 
              SERVICE PROVIDERS.

    (a) Definitions Relating to Cannabis-Related Legitimate Businesses 
and Service Providers.--Section 3 of the Small Business Act (15 U.S.C. 
632) is amended by adding at the end the following new subsection:
    ``(ff) Cannabis-Related Legitimate Businesses and Service 
Providers.--In this Act:
            ``(1) Cannabis.--The term `cannabis'--
                    ``(A) means all parts of the plant Cannabis sativa 
                L., whether growing or not; the seeds thereof; the 
                resin extracted from any part of such plant; and every 
                compound, manufacture, salt, derivative, mixture, or 
                preparation of such plant, its seeds or resin; and
                    ``(B) does not include--
                            ``(i) hemp, as defined in section 297A of 
                        the Agricultural Marketing Act of 1946; or
                            ``(ii) the mature stalks of such plant, 
                        fiber produced from such stalks, oil or cake 
                        made from the seeds of such plant, any other 
                        compound, manufacture, salt, derivative, 
                        mixture, or preparation of such mature stalks 
                        (except the resin extracted therefrom), fiber, 
                        oil, or cake, or the sterilized seed of such 
                        plant which is incapable of germination.
            ``(2) Cannabis-related legitimate business.--The term 
        `cannabis-related legitimate business' means a manufacturer, 
        producer, or any person or company that is a small business 
        concern and that--
                    ``(A) engages in any activity described in 
                subparagraph (B) pursuant to a law established by a 
                State or a political subdivision of a State, as 
                determined by such State or political sub-division; and
                    ``(B) participates in any business or organized 
                activity that involves handling cannabis or cannabis 
                products, including cultivating, producing, 
                manufacturing, selling, transporting, displaying, 
                dispensing, distributing, or purchasing cannabis or 
                cannabis products.
            ``(3) Service provider.--The term `service provider'--
                    ``(A) means a business, organization, or other 
                person that--
                            ``(i) sells goods or services to a 
                        cannabis-related legitimate business; or
                            ``(ii) provides any business services, 
                        including the sale or lease of real or any 
                        other property, legal or other licensed 
                        services, or any other ancillary service, 
                        relating to cannabis; and
                    ``(B) does not include a business, organization, or 
                other person that participates in any business or 
                organized activity that involves handling cannabis or 
                cannabis products, including cultivating, producing, 
                manufacturing, selling, transporting, displaying, 
                dispensing, distributing, or purchasing cannabis or 
                cannabis products.''.
    (b) Small Business Development Centers.--Section 21(c) of the Small 
Business Act (15 U.S.C. 648(c)) is amended by adding at the end the 
following new paragraph:
            ``(9) Services for cannabis-related legitimate businesses 
        and service providers.--A small business development center may 
        not decline to provide services to an otherwise eligible small 
        business concern under this section solely because such concern 
        is a cannabis-related legitimate business or service 
        provider.''.
    (c) Women's Business Centers.--Section 29 of the Small Business Act 
(15 U.S.C. 656) is amended by adding at the end the following new 
subsection:
    ``(p) Services for Cannabis-Related Legitimate Businesses and 
Service Providers.--A women's business center may not decline to 
provide services to an otherwise eligible small business concern under 
this section solely because such concern is a cannabis-related 
legitimate business or service provider.''.
    (d) SCORE.--Section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 
637(b)(1)(B)) is amended by adding at the end the following new 
sentence: ``The head of the SCORE program established under this 
subparagraph may not decline to provide services to an otherwise 
eligible small business concern solely because such concern is a 
cannabis-related legitimate business or service provider.''.
    (e) Veteran Business Outreach Centers.--Section 32 of the Small 
Business Act (15 U.S.C. 657b) is amended by adding at the end the 
following new subsection:
    ``(h) Services for Cannabis-Related Legitimate Businesses and 
Service Providers.--A Veteran Business Outreach Center may not decline 
to provide services to an otherwise eligible small business concern 
under this section solely because such concern is a cannabis-related 
legitimate business or service provider.''.
    (f) 7(a) Loans.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following new paragraph:
            ``(36) Loans to cannabis-related legitimate businesses and 
        service providers.--The Administrator may not decline to 
        provide a guarantee for a loan under this subsection to an 
        otherwise eligible small business concern solely because such 
        concern is a cannabis-related legitimate business or service 
        provider.''.
    (g) Disaster Loans.--Section 7(b) of the Small Business Act (15 
U.S.C. 636(b)) is amended by inserting after paragraph (15) the 
following new paragraph:
            ``(16) Assistance to cannabis-related legitimate businesses 
        and service providers.--The Administrator may not decline to 
        provide assistance under this subsection to an otherwise 
        eligible borrower solely because such borrower is a cannabis-
        related legitimate business or service provider.''.
    (h) Microloans.--Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended by adding at the end the following new paragraph:
            ``(14) Assistance to cannabis-related legitimate businesses 
        and service providers.--An eligible intermediary may not 
        decline to provide assistance under this subsection to an 
        otherwise eligible borrower solely because such borrower is a 
        cannabis-related legitimate business or service provider.''.
    (i) State or Local Development Company Loans.--Title V of the Small 
Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by 
adding at the end the following new section:

``SEC. 511. LOANS TO CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE 
              PROVIDERS.

    ``The Administrator may not decline to provide a guarantee for a 
loan under this title to an otherwise eligible State or local 
development company solely because such State or local development 
company provides financing to an entity that is a cannabis-related 
legitimate business or service provider (as defined in section 3(ff) of 
the Small Business Act).''.

SEC. 8. NO DISCRIMINATION IN THE PROVISION OF A FEDERAL PUBLIC BENEFIT 
              ON THE BASIS OF CANNABIS.

    (a) In General.--No person may be denied any Federal public benefit 
(as such term is defined in section 401(c) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1611(c))) on the basis of any use or possession of cannabis, or 
on the basis of a conviction or adjudication of juvenile delinquency 
for a cannabis offense, by that person.
    (b) Security Clearances.--Federal agencies may not use past or 
present cannabis or marijuana use as criteria for granting, denying, or 
rescinding a security clearance.

SEC. 9. NO ADVERSE EFFECT FOR PURPOSES OF THE IMMIGRATION LAWS.

    (a) In General.--For purposes of the immigration laws (as such term 
is defined in section 101 of the Immigration and Nationality Act), 
cannabis may not be considered a controlled substance, and an alien may 
not be denied any benefit or protection under the immigration laws 
based on any event, including conduct, a finding, an admission, 
addiction or abuse, an arrest, a juvenile adjudication, or a 
conviction, relating to cannabis, regardless of whether the event 
occurred before, on, or after the effective date of this Act.
    (b) Cannabis Defined.--The term ``cannabis''--
            (1) means all parts of the plant Cannabis sativa L., 
        whether growing or not; the seeds thereof; the resin extracted 
        from any part of such plant; and every compound, manufacture, 
        salt, derivative, mixture, or preparation of such plant, its 
        seeds or resin; and
            (2) does not include--
                    (A) hemp, as defined in section 297A of the 
                Agricultural Marketing Act of 1946; or
                    (B) the mature stalks of such plant, fiber produced 
                from such stalks, oil or cake made from the seeds of 
                such plant, any other compound, manufacture, salt, 
                derivative, mixture, or preparation of such mature 
                stalks (except the resin extracted therefrom), fiber, 
                oil, or cake, or the sterilized seed of such plant 
                which is incapable of germination.
    (c) Conforming Amendments to Immigration and Nationality Act.--The 
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended--
            (1) in section 212(h), by striking ``and subparagraph 
        (A)(i)(II) of such subsection insofar as it relates to a single 
        offense of simple possession of 30 grams or less of 
        marijuana'';
            (2) in section 237(a)(2)(B)(i), by striking ``other than a 
        single offense involving possession for one's own use of 30 
        grams or less of marijuana'';
            (3) in section 101(f)(3), by striking ``(except as such 
        paragraph relates to a single offense of simple possession of 
        30 grams or less of marihuana)'';
            (4) in section 244(c)(2)(A)(iii)(II) by striking ``except 
        for so much of such paragraph as relates to a single offense of 
        simple possession of 30 grams or less of marijuana'';
            (5) in section 245(h)(2)(B) by striking ``(except for so 
        much of such paragraph as related to a single offense of simple 
        possession of 30 grams or less of marijuana)'';
            (6) in section 210(c)(2)(B)(ii)(III) by striking ``, except 
        for so much of such paragraph as relates to a single offense of 
        simple possession of 30 grams or less of marihuana''; and
            (7) in section 245A(d)(2)(B)(ii)(II) by striking ``, except 
        for so much of such paragraph as relates to a single offense of 
        simple possession of 30 grams or less of marihuana''.

SEC. 10. RESENTENCING AND EXPUNGEMENT.

    (a) Expungement of Federal Cannabis Offense Convictions for 
Individuals Not Under a Criminal Justice Sentence.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, each Federal district shall conduct 
        a comprehensive review and issue an order expunging each 
        conviction or adjudication of juvenile delinquency for a 
        Federal cannabis offense entered by each Federal court in the 
        district before the date of enactment of this Act and on or 
        after May 1, 1971. Each Federal court shall also issue an order 
        expunging any arrests associated with each expunged conviction 
        or adjudication of juvenile delinquency.
            (2) Notification.--To the extent practicable, each Federal 
        district shall notify each individual whose arrest, conviction, 
        or adjudication of delinquency has been expunged pursuant to 
        this subsection that their arrest, conviction, or adjudication 
        of juvenile delinquency has been expunged, and the effect of 
        such expungement.
            (3) Right to petition court for expungement.--At any point 
        after the date of enactment of this Act, any individual with a 
        prior conviction or adjudication of juvenile delinquency for a 
        Federal cannabis offense, who is not under a criminal justice 
        sentence, may file a motion for expungement. If the expungement 
        of such a conviction or adjudication of juvenile delinquency is 
        required pursuant to this Act, the court shall expunge the 
        conviction or adjudication, and any associated arrests. If the 
        individual is indigent, counsel shall be appointed to represent 
        the individual in any proceedings under this subsection.
            (4) Sealed record.--The court shall seal all records 
        related to a conviction or adjudication of juvenile delinquency 
        that has been expunged under this subsection. Such records may 
        only be made available by further order of the court.
    (b) Sentencing Review for Individuals Under a Criminal Justice 
Sentence.--
            (1) In general.--For any individual who is under a criminal 
        justice sentence for a Federal cannabis offense, the court that 
        imposed the sentence shall, on motion of the individual, the 
        Director of the Bureau of Prisons, the attorney for the 
        Government, or the court, conduct a sentencing review hearing. 
        If the individual is indigent, counsel shall be appointed to 
        represent the individual in any sentencing review proceedings 
        under this subsection.
            (2) Potential reduced resentencing.--After a sentencing 
        hearing under paragraph (1), a court shall--
                    (A) expunge each conviction or adjudication of 
                juvenile delinquency for a Federal cannabis offense 
                entered by the court before the date of enactment of 
                this Act, and any associated arrest;
                    (B) vacate the existing sentence or disposition of 
                juvenile delinquency and, if applicable, impose any 
                remaining sentence or disposition of juvenile 
                delinquency on the individual as if this Act, and the 
                amendments made by this Act, were in effect at the time 
                the offense was committed; and
                    (C) order that all records related to a conviction 
                or adjudication of juvenile delinquency that has been 
                expunged or a sentence or disposition of juvenile 
                delinquency that has been vacated under this Act be 
                sealed and only be made available by further order of 
                the court.
    (c) Effect of Expungement.--An individual who has had an arrest, a 
conviction, or juvenile delinquency adjudication expunged under this 
section--
            (1) may treat the arrest, conviction, or adjudication as if 
        it never occurred; and
            (2) shall be immune from any civil or criminal penalties 
        related to perjury, false swearing, or false statements, for a 
        failure to disclose such arrest, conviction, or adjudication.
    (d) Definitions.--In this section:
            (1) The term ``Federal cannabis offense'' means an offense 
        that is no longer punishable pursuant to this Act or the 
        amendments made under this Act.
            (2) The term ``expunge'' means, with respect to an arrest, 
        a conviction, or a juvenile delinquency adjudication, the 
        removal of the record of such arrest, conviction, or 
        adjudication from each official index or public record.
            (3) The term ``under a criminal justice sentence'' means, 
        with respect to an individual, that the individual is serving a 
        term of probation, parole, supervised release, imprisonment, 
        official detention, pre-release custody, or work release, 
        pursuant to a sentence or disposition of juvenile delinquency 
        imposed on or after the effective date of the Controlled 
        Substances Act (May 1, 1971).
    (e) Study.--The Comptroller General of the United States, in 
consultation with the National Institute on Drug Abuse, shall conduct a 
demographic study of individuals convicted of a Federal cannabis 
offense. Such study shall include information about the age, race, 
ethnicity, sex, and gender identity of those individuals, the type of 
community such users dwell in, and such other demographic information 
as the Comptroller General determines should be included.
    (f) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Comptroller General of the United States shall report 
to Congress the results of the study conducted under subsection (e).

SEC. 11. REFERENCES IN EXISTING LAW TO MARIJUANA OR MARIHUANA.

    Wherever, in the statutes of the United States or in the rulings, 
regulations, or interpretations of various administrative bureaus and 
agencies of the United States--
            (1) there appears or may appear the term ``marihuana'' or 
        ``marijuana'', that term shall be struck and the term 
        ``cannabis'' shall be inserted; and
            (2) there appears or may appear the term ``Marihuana'' or 
        ``Marijuana'', that term shall be struck and the term 
        ``Cannabis'' shall be inserted.

SEC. 12. SEVERABILITY.

    If any provision of this Act or an amendment made by this Act, or 
any application of such provision to any person or circumstance, is 
held to be unconstitutional, the remainder of this Act, the amendments 
made by this Act, and the application of this Act and the amendments 
made by this Act to any other person or circumstance shall not be 
affected.

SEC. 13. CANNABIS OFFENSE DEFINED.

    For purposes of this Act, the term ``cannabis offense'' means a 
criminal offense related to cannabis--
            (1) that, under Federal law, is no longer punishable 
        pursuant to this Act or the amendments made under this Act; or
            (2) that, under State law, is no longer an offense or that 
        was designated a lesser offense or for which the penalty was 
        reduced under State law pursuant to or following the adoption 
        of a State law authorizing the sale or use of cannabis.

SEC. 14. RULEMAKING.

    Unless otherwise provided in this Act, not later than 1 year after 
the date of enactment of this Act, the Department of the Treasury, the 
Department of Justice, and the Small Business Administration shall 
issue or amend any rules, standard operating procedures, and other 
legal or policy guidance necessary to carry out implementation of this 
Act. After the 1-year period, any publicly issued sub-regulatory 
guidance, including any compliance guides, manuals, advisories and 
notices, may not be issued without 60-day notice to appropriate 
congressional committees. Notice shall include a description and 
justification for additional guidance.

SEC. 15. SOCIETAL IMPACT OF MARIJUANA LEGALIZATION STUDY.

    The Comptroller General of the United States shall, not later than 
2 years after the date of enactment of this Act, provide to Congress a 
study that addresses the societal impact of the legalization of 
recreational cannabis by States, including--
            (1) sick days reported to employers;
            (2) workers compensations claims;
            (3) tax revenue remitted to States resulting from legal 
        marijuana sales;
            (4) changes in government spending related to enforcement 
        actions and court proceedings;
            (5) Federal welfare assistance applications;
            (6) rate of arrests related to methamphetamine possession;
            (7) hospitalization rates related to methamphetamine and 
        narcotics use;
            (8) uses of marijuana and its byproducts for medical 
        purposes;
            (9) arrest rates of individuals driving under the influence 
        or driving while intoxicated by marijuana;
            (10) traffic-related deaths and injuries where the driver 
        is impaired by marijuana;
            (11) arrest of minors for marijuana-related charges;
            (12) violent crime rates;
            (13) school suspensions, expulsions, and law enforcement 
        referrals that are marijuana-related;
            (14) high school dropout rates;
            (15) changes in district-wide and State-wide standardized 
        test scores;
            (16) marijuana-related hospital admissions and poison 
        control calls;
            (17) marijuana-related juvenile admittances into substance 
        rehabilitation facilities and mental health clinics;
            (18) diversion of marijuana into neighboring States and 
        drug seizures in neighboring States;
            (19) marijuana plants grown on public lands in 
        contravention to Federal and State laws; and
            (20) court filings under a State's organized crime 
        statutes.
                                                 Union Calendar No. 497

116th CONGRESS

  2d Session

                               H. R. 3884

                      [Report No. 116-604, Part I]

_______________________________________________________________________

                                 A BILL

 To decriminalize and deschedule cannabis, to provide for reinvestment 
 in certain persons adversely impacted by the War on Drugs, to provide 
 for expungement of certain cannabis offenses, and for other purposes.

_______________________________________________________________________

                           November 27, 2020

     Reported from the Committee on the Judiciary with an amendment

                           November 27, 2020

 Committees on Energy and Commerce, Agriculture, Education and Labor, 
 Ways and Means, Small Business, Natural Resources, and Oversight and 
Reform discharged; committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
```