I 

116TH CONGRESS 

1ST SESSION H. R. 3884 

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. VELA ́ZQUEZ, 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 

A BILL 

To decriminalize and deschedule cannabis, to provide for 

reinvestment in certain persons adversely impacted by 

the War on Drugs, to provide for expungement of certain 

cannabis offenses, and for other purposes. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Marijuana Opportunity 

3 Reinvestment and Expungement Act of 2019’’ or the 

4 ‘‘MORE Act of 2019’’. 

5 SEC. 2. DECRIMINALIZATION OF CANNABIS. 

6 (a) CANNABIS REMOVED FROM SCHEDULE OF CON7 TROLLED SUBSTANCES.— 

8 (1) REMOVAL IN STATUTE.—Subsection (c) of 

9 schedule I of section 202(c) of the Controlled Sub10 stances Act (21 U.S.C. 812) is amended— 

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

12 (B) by striking ‘‘(17) 

13 Tetrahydrocannabinols, except for 

14 tetrahydrocannabinols in hemp (as defined in 

15 section 297A of the Agricultural Marketing Act 

16 of 1946).’’. 

17 (2) REMOVAL FROM SCHEDULE.—Not later 

18 than 180 days after the date of the enactment of 

19 this Act, the Attorney General shall finalize a rule20 making under section 201(a)(2) removing mari21 huana and tetrahydrocannabinols from the schedules 

22 of controlled substances. Marihuana and 

23 tetrahydrocannabinols shall each be deemed to be a 

24 drug or other substance that does not meet the re25 quirements for inclusion in any schedule. A rule26 making under this paragraph shall be considered to 


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

2 Act for purposes of any offense committed, case 

3 pending, conviction entered, and, in the case of a ju4 venile, any offense committed, case pending, and ad5 judication of juvenile delinquency entered before, on, 

6 or after the date of enactment of this Act. 

7 (b) CONFORMING AMENDMENTS TO CONTROLLED

8 SUBSTANCES ACT.—The Controlled Substances Act (21 

9 U.S.C. 801 et seq.) is amended— 

10 (1) in section 102(44) (21 U.S.C. 802(44)), by 

11 striking ‘‘marihuana,’’; 

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

13 (A) in paragraph (1)— 

14 (i) in subparagraph (A)— 

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

16 ‘‘or’’ after the semicolon; 

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

18 (III) by redesignating clause 

19 (viii) as clause (vii); 

20 (ii) in subparagraph (B)— 

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

22 ‘‘or’’ after the semicolon; 

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

24 (III) by redesignating clause 

25 (viii) as clause (vii); 


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

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

3 (B), and (D)’’ and inserting ‘‘subpara4 graphs (A) and (B)’’; 

5 (iv) by striking subparagraph (D); 

6 (v) by redesignating subparagraph (E) 

7 as subparagraph (D); and 

8 (vi) in subparagraph (D)(i), as so re9 designated, by striking ‘‘subparagraphs (C) 

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

11 (C)’’; 

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

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

14 and (7) as paragraphs (4), (5), and (6), respec15 tively; 

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

17 842(c)(2)(B)), by striking ‘‘, marihuana,’’; 

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

19 by striking ‘‘, marihuana,’’; 

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

21 striking the last sentence; 

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

23 striking the last sentence; 

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


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

2 by striking ‘‘marijuana,’’; and 

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

4 as a marihuana cigarette,’’; and 

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

6 striking ‘‘section 401(b)(6)’’ each place the term ap7 pears and inserting ‘‘section 401(b)(5)’’. 

8 (c) OTHER CONFORMING AMENDMENTS.— 

9 (1) NATIONAL FOREST SYSTEM DRUG CONTROL

10 ACT OF 1986.—The National Forest System Drug 

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

12 amended— 

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

14 559b(a)) by striking ‘‘marijuana and other’’; 

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

16 559c(2)) by striking ‘‘marijuana and other’’; 

17 and 

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

19 559d(2)) by striking ‘‘marijuana and other’’. 

20 (2) INTERCEPTION OF COMMUNICATIONS.—Sec21 tion 2516 of title 18, United States Code, is amend22 ed— 

23 (A) in subsection (1)(e), by striking ‘‘mari24 huana,’’; and 


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1 (B) in subsection (2) by striking ‘‘mari2 huana’’. 

3 (d) RETROACTIVITY.—The amendments made by this 

4 section to the Controlled Substances Act (21 U.S.C. 801 

5 et seq.) are retroactive and shall apply to any offense com6 mitted, case pending, conviction entered, and, in the case 

7 of a juvenile, any offense committed, case pending, or ad8 judication of juvenile delinquency entered before, on, or 

9 after the date of enactment of this Act. 

10 SEC. 3. DEMOGRAPHIC DATA OF CANNABIS BUSINESS OWN11 ERS AND EMPLOYEES. 

12 (a) IN GENERAL.—The Bureau of Labor Statistics 

13 shall regularly compile, maintain, and make public data 

14 on the demographics of— 

15 (1) individuals who are business owners in the 

16 cannabis industry; and 

17 (2) individuals who are employed in the can18 nabis industry. 

19 (b) DEMOGRAPHIC DATA.—The data collected under 

20 subsection (a) shall include data regarding— 

21 (1) age; 

22 (2) certifications and licenses; 

23 (3) disability status; 

24 (4) educational attainment; 

25 (5) family and marital status; 


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1 (6) nativity; 

2 (7) race and Hispanic ethnicity; 

3 (8) school enrollment; 

4 (9) veteran status; and 

5 (10) sex. 

6 (c) CONFIDENTIALITY.—The name, address, and 

7 other identifying information of individuals employed in 

8 the cannabis industry shall be kept confidential by the Bu9 reau and not be made available to the public. 

10 (d) DEFINITIONS.—In this section: 

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

12 either marijuana or cannabis as defined under the 

13 State law authorizing the sale or use of cannabis in 

14 which the individual or entity is located. 

15 (2) CANNABIS INDUSTRY.—The term ‘‘cannabis 

16 industry’’ means an individual or entity that is li17 censed or permitted under a State or local law to en18 gage in commercial cannabis-related activity. 

19 (3) OWNER.—The term ‘‘owner’’ means an in20 dividual or entity that is defined as an owner under 

21 the State or local law where the individual or busi22 ness is licensed or permitted. 

23 SEC. 4. CREATION OF OPPORTUNITY TRUST FUND AND IM24 POSITION OF TAX ON CANNABIS PRODUCTS. 

25 (a) TRUST FUND.— 


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1 (1) ESTABLISHMENT.—Subchapter A of chap2 ter 98 of the Internal Revenue Code of 1986 is 

3 amended by adding at the end the following new sec4 tion: 

5 ‘‘SEC. 9512. OPPORTUNITY TRUST FUND. 

6 ‘‘(a) CREATION OF TRUST FUND.—There is estab7 lished in the Treasury of the United States a trust fund 

8 to be known as the ‘Opportunity Trust Fund’ (referred 

9 to in this section as the ‘Trust Fund’), consisting of such 

10 amounts as may be appropriated or credited to such fund 

11 as provided in this section or section 9602(b). 

12 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here13 by appropriated to the Trust Fund amounts equivalent to 

14 the net revenues received in the Treasury from the tax 

15 imposed by section 5701(h). 

16 ‘‘(c) EXPENDITURES.—Amounts in the Trust Fund 

17 shall be available, without further appropriation, only as 

18 follows: 

19 ‘‘(1) 50 percent to the Attorney General to 

20 carry out section 3052(a) of part OO of the Omni21 bus Crime Control and Safe Streets Act of 1968. 

22 ‘‘(2) 10 percent to the Attorney General to 

23 carry out section 3052(b) of part OO of the Omni24 bus Crime Control and Safe Streets Act of 1968. 


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1 ‘‘(3) 20 percent to the Administrator of the 

2 Small Business Administration to carry out section 

3 5(b)(1) of the Marijuana Opportunity Reinvestment 

4 and Expungement Act of 2019. 

5 ‘‘(4) 20 percent to the Administrator of the 

6 Small Business Administration to carry out section 

7 5(b)(2) of the Marijuana Opportunity Reinvestment 

8 and Expungement Act of 2019.’’. 

9 (2) CLERICAL AMENDMENT.—The table of sec10 tions for subchapter A of chapter 98 of such Code 

11 is amended by adding at the end the following new 

12 item: 

‘‘Sec. 9512. Opportunity trust fund.’’. 

13 (b) IMPOSITION OF TAX.— 

14 (1) IN GENERAL.—Section 5701 of the Internal 

15 Revenue Code of 1986 is amended by redesignating 

16 subsection (h) as subsection (i) and by inserting 

17 after subsection (g) the following new subsection: 

18 ‘‘(h) CANNABIS PRODUCTS.—On cannabis products, 

19 manufactured in or imported into the United States, there 

20 shall be imposed a tax equal to 5 percent of the price for 

21 which sold.’’. 

22 (2) CANNABIS PRODUCT DEFINED.—Section 

23 5702 of such Code is amended by adding at the end 

24 the following new subsection: 

25 ‘‘(q) CANNABIS PRODUCT.— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), the term ‘cannabis product’ means any 

3 cannabis or any article which contains cannabis or 

4 any derivative thereof. 

5 ‘‘(2) EXCEPTION.—The term ‘cannabis product’ 

6 shall not include any medicine or drug that is a pre7 scribed drug (as such term is defined in section 

8 213(d)(3)). 

9 ‘‘(3) CANNABIS.—The term ‘cannabis’— 

10 ‘‘(A) means all parts of the plant Cannabis 

11 sativa L., whether growing or not; the seeds 

12 thereof; the resin extracted from any part of 

13 such plant; and every compound, manufacture, 

14 salt, derivative, mixture, or preparation of such 

15 plant, its seeds or resin; and 

16 ‘‘(B) does not include— 

17 ‘‘(i) hemp, as defined in section 297A 

18 of the Agricultural Marketing Act of 1946; 

19 or 

20 ‘‘(ii) the mature stalks of such plant, 

21 fiber produced from such stalks, oil or cake 

22 made from the seeds of such plant, any 

23 other compound, manufacture, salt, deriva24 tive, mixture, or preparation of such ma25 ture stalks (except the resin extracted 


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1 therefrom), fiber, oil, or cake, or the steri2 lized seed of such plant which is incapable 

3 of germination.’’. 

4 (3) CANNABIS PRODUCTS TREATED AS TO5 BACCO PRODUCTS.—Section 5702(c) of such Code is 

6 amended by striking ‘‘and roll-your-own tobacco’’ 

7 and inserting ‘‘roll-your-own tobacco, and cannabis 

8 products’’. 

9 (4) MANUFACTURER OF CANNABIS PRODUCTS

10 TREATED AS MANUFACTURER OF TOBACCO PROD11 UCTS.—Section 5702 of such Code is amended by 

12 adding at the end the following new subsection: 

13 ‘‘(r) MANUFACTURER OF CANNABIS PRODUCTS.— 

14 ‘‘(1) IN GENERAL.—Any person who plants, 

15 cultivates, harvests, produces, manufactures, com16 pounds, converts, processes, prepares, or packages 

17 any cannabis product shall be treated as a manufac18 turer of cannabis products (and as manufacturing 

19 such cannabis product). 

20 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

21 apply with respect to any cannabis product which is 

22 for such person’s own personal consumption or use. 

23 ‘‘(3) APPLICATION OF RULES RELATED TO

24 MANUFACTURERS OF TOBACCO PRODUCTS.—Any 

25 reference to a manufacturer of tobacco products, or 


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1 to manufacturing tobacco products, shall be treated 

2 as including a reference to a manufacturer of can3 nabis products, or to manufacturing cannabis prod4 ucts, respectively.’’. 

5 (5) APPLICATION OF CERTAIN RULES FOR DE6 TERMINING PRICE.—Section 5702(l) of such Code is 

7 amended— 

8 (A) by striking ‘‘section 5701(a)(2)’’ and 

9 inserting ‘‘subsections (a)(2) and (h) of section 

10 5701’’; and 

11 (B) by inserting ‘‘AND CANNABIS PROD12 UCTS’’ after ‘‘CIGARS’’ in the heading thereof. 

13 (6) CONFORMING AMENDMENT.—Section 

14 5702(j) of such Code is amended by adding at the 

15 end the following new sentence: ‘‘In the case of a 

16 cannabis product, the previous sentence shall be ap17 plied by substituting ‘from a facility of a manufac18 turer required to file a bond under section 5711’ for 

19 ‘from the factory or from internal revenue bond 

20 under section 5704’.’’. 

21 (c) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—Except as otherwise pro23 vided in this subsection, the amendments made by 

24 this section shall apply to articles manufactured or 


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1 imported in calendar quarters beginning more than 

2 one year after the date of the enactment of this Act. 

3 (2) TRUST FUND.—The amendments made by 

4 subsection (a) shall take effect on the date of the en5 actment of this Act. 

6 SEC. 5. OPPORTUNITY TRUST FUND PROGRAMS. 

7 (a) CANNABIS JUSTICE OFFICE; COMMUNITY REIN8 VESTMENT GRANT PROGRAM.— 

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

10 title I of the Omnibus Crime Control and Safe 

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

12 amended by inserting after section 109 the fol13 lowing: 

14 ‘‘SEC. 110. CANNABIS JUSTICE OFFICE. 

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

16 the Office of Justice Programs a Cannabis Justice Office. 

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

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

19 Assistant Attorney General for the Office of Justice Pro20 grams. The Director shall report to the Assistant Attorney 

21 General for the Office of Justice Programs. The Director 

22 shall award grants and may enter into compacts, coopera23 tive agreements, and contracts on behalf of the Cannabis 

24 Justice Office. The Director may not engage in any em25 ployment other than that of serving as the Director, nor 


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

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

3 Office makes any contract or other arrangement. 

4 ‘‘(c) EMPLOYEES.— 

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

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

7 out the duties and functions of the Cannabis Justice 

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

9 exclusively assigned to the Cannabis Justice Office. 

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

11 after the date of enactment of this section, the Di12 rector shall— 

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

14 total number of employees of the Cannabis Jus15 tice Office; and 

16 ‘‘(B) no more than one-half of the employ17 ees assigned to the Cannabis Justice Office by 

18 term appointment that may after 2 years be 

19 converted to career appointment. 

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

21 hired for the Cannabis Justice Office shall serve as 

22 legal counsel to the Director and shall provide coun23 sel to the Cannabis Justice Office. 

24 ‘‘(d) DUTIES AND FUNCTIONS.—The Cannabis Jus25 tice Office is authorized to— 


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1 ‘‘(1) administer the Community Reinvestment 

2 Grant Program; and 

3 ‘‘(2) perform such other functions as the Assist4 ant Attorney General for the Office of Justice Pro5 grams may delegate, that are consistent with the 

6 statutory obligations of this section.’’. 

7 (2) COMMUNITY REINVESTMENT GRANT PRO8 GRAM.—Title I of the Omnibus Crime Control and 

9 Safe Streets Act of 1968 (34 U.S.C. et seq.) is 

10 amended by adding at the end the following: 

11 ‘‘PART OO—COMMUNITY REINVESTMENT GRANT 

12 PROGRAM 

13 ‘‘SEC. 3052. AUTHORIZATION. 

14 ‘‘(a) IN GENERAL.—The Director of the Cannabis 

15 Justice Office shall establish and carry out a grant pro16 gram, known as the ‘Community Reinvestment Grant Pro17 gram’, to provide eligible entities with funds to administer 

18 services for individuals most adversely impacted by the 

19 War on Drugs, including— 

20 ‘‘(1) job training; 

21 ‘‘(2) reentry services; 

22 ‘‘(3) legal aid for civil and criminal cases, in23 cluding expungement of cannabis convictions; 

24 ‘‘(4) literacy programs; 


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

2 and 

3 ‘‘(6) health education programs. 

4 ‘‘(b) SUBSTANCE USE TREATMENT SERVICES.—The 

5 Community Reinvestment Grant Program established in 

6 subsection (a) shall provide eligible entities with funds to 

7 administer substance use treatment services for individ8 uals most adversely impacted by the War on Drugs. 

9 ‘‘SEC. 3053. FUNDING FROM OPPORTUNITY TRUST FUND. 

10 ‘‘The Director shall carry out the program under this 

11 part using funds made available under section 9512(c)(1) 

12 and (2) of the Internal Revenue Code. 

13 ‘‘SEC. 3054. DEFINITIONS. 

14 ‘‘In this part: 

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

16 conviction, or adjudication of juvenile delinquency, 

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

18 section 12(2) of the Marijuana Opportunity Rein19 vestment and Expungement Act of 2019). 

20 ‘‘(2) The term ‘substance use treatment’ means 

21 an evidence-based, professionally directed, deliberate, 

22 and planned regimen including evaluation, observa23 tion, medical monitoring, harm reduction, and reha24 bilitative services and interventions such as 

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1 vidual and group counseling, on an inpatient or out2 patient basis, to help patients with substance use 

3 disorder reach remission and maintain recovery. 

4 ‘‘(3) The term ‘eligible entity’ means a non5 profit organization, as defined in section 501(c)(3) 

6 of the Internal Revenue Code, that is representative 

7 of a community or a significant segment of a com8 munity with experience in providing relevant services 

9 to individuals most adversely impacted by the War 

10 on Drugs in that community. 

11 ‘‘(4) The term ‘individuals most adversely im12 pacted by the War on Drugs’ has the meaning given 

13 that term in section 5 of the Marijuana Opportunity 

14 Reinvestment and Expungement Act of 2019.’’. 

15 (b) CANNABIS OPPORTUNITY PROGRAM; EQUITABLE

16 LICENSING GRANT PROGRAM.— 

17 (1) CANNABIS OPPORTUNITY PROGRAM.—The 

18 Administrator of the Small Business Administration 

19 shall establish and carry out a program, to be known 

20 as the ‘‘Cannabis Opportunity Program’’ to provide 

21 any eligible State or locality funds to make loans 

22 under section 7(m) of the Small Business Act (15 

23 U.S.C. 363(m)) to assist small business concerns 

24 owned and controlled by socially and economically 

25 disadvantaged individuals, as defined in section 


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1 8(d)(3)(C) of the Small Business Act (15 U.S.C. 

2 637(d)(3)(C)) that operate in the cannabis industry. 

3 (2) EQUITABLE LICENSING GRANT PROGRAM.— 

4 The Administrator of the Small Business Adminis5 tration shall establish and carry out a grant pro6 gram, to be known as the ‘‘Equitable Licensing 

7 Grant Program’’, to provide any eligible State of lo8 cality funds to develop and implement equitable can9 nabis licensing programs that minimize barriers to 

10 cannabis licensing and employment for individuals 

11 most adversely impacted by the War on Drugs, pro12 vided that each grantee includes in its cannabis li13 censing program at least four of the following: 

14 (A) A waiver of cannabis license applica15 tion fees for individuals who have had an in16 come below 250 percent of the Federal Poverty 

17 Level for at least 5 of the past 10 years who 

18 are first-time applicants. 

19 (B) A prohibition on the denial of a can20 nabis license based on a conviction for a can21 nabis offense that took place prior to State le22 galization of cannabis or the date of enactment 

23 of this Act, as appropriate. 

24 (C) A prohibition on criminal conviction re25 strictions for licensing except with respect to a 


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1 conviction related to owning and operating a 

2 business. 

3 (D) A prohibition on cannabis license hold4 ers engaging in suspicionless cannabis drug 

5 testing of their prospective or current employ6 ees, except with respect to drug testing for safe7 ty-sensitive positions, as defined under the Om8 nibus Transportation Testing Act of 1991. 

9 (E) The establishment of a cannabis li10 censing board that is reflective of the racial, 

11 ethnic, economic, and gender composition of the 

12 State or locality, to serve as an oversight body 

13 of the equitable licensing program. 

14 (3) DEFINITIONS.—In this subsection: 

15 (A) The term ‘‘individual most adversely 

16 impacted by the War on Drugs’’ means an indi17 vidual— 

18 (i) who has had an income below 250 

19 percent of the Federal Poverty Level for at 

20 least 5 of the past 10 years; and 

21 (ii) has been arrested for or convicted 

22 of the sale, possession, use, manufacture, 

23 or cultivation of cannabis or a controlled 

24 substance (except for a conviction involving 

25 distribution to a minor), or whose parent, 


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1 sibling, spouse, or child has been arrested 

2 for or convicted of such an offense. 

3 (B) The term ‘‘eligible State or locality’’ 

4 means a State or locality that has taken steps 

5 to— 

6 (i) create an automatic process, at no 

7 cost to the individual, for the 

8 expungement, destruction, or sealing of 

9 criminal records for cannabis offenses; and 

10 (ii) eliminate violations or other pen11 alties for persons under parole, probation, 

12 pre-trial, or other State or local criminal 

13 supervision for a cannabis offense. 

14 (C) The term ‘‘State’’ means each of the 

15 several States, the District of Columbia, Puerto 

16 Rico, any territory or possession of the United 

17 States, and any Indian Tribe (as defined in sec18 tion 201 of Public Law 90–294 (25 U.S.C. 

19 1301) (commonly known as the ‘‘Indian Civil 

20 Rights Act of 1968’’)). 


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1 SEC. 6. AVAILABILITY OF SMALL BUSINESS ADMINISTRA2 TION PROGRAMS AND SERVICES TO CAN3 NABIS-RELATED LEGITIMATE BUSINESSES 

4 AND SERVICE PROVIDERS. 

5 (a) DEFINITIONS RELATING TO CANNABIS-RELATED

6 LEGITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

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

8 amended by adding at the end the following new sub9 section: 

10 ‘‘(ff) CANNABIS-RELATED LEGITIMATE BUSINESSES

11 AND SERVICE PROVIDERS.—In this Act: 

12 ‘‘(1) CANNABIS.—The term ‘cannabis’— 

13 ‘‘(A) means all parts of the plant Cannabis 

14 sativa L., whether growing or not; the seeds 

15 thereof; the resin extracted from any part of 

16 such plant; and every compound, manufacture, 

17 salt, derivative, mixture, or preparation of such 

18 plant, its seeds or resin; and 

19 ‘‘(B) does not include— 

20 ‘‘(i) hemp, as defined in section 297A 

21 of the Agricultural Marketing Act of 1946; 

22 or 

23 ‘‘(ii) the mature stalks of such plant, 

24 fiber produced from such stalks, oil or cake 

25 made from the seeds of such plant, any 

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1 tive, mixture, or preparation of such ma2 ture stalks (except the resin extracted 

3 therefrom), fiber, oil, or cake, or the steri4 lized seed of such plant which is incapable 

5 of germination. 

6 ‘‘(2) CANNABIS-RELATED LEGITIMATE BUSI7 NESS.—The term ‘cannabis-related legitimate busi8 ness’ means a manufacturer, producer, or any per9 son or company that is a small business concern and 

10 that— 

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

12 subparagraph (B) pursuant to a law established 

13 by a State or a political subdivision of a State, 

14 as determined by such State or political sub-di15 vision; and 

16 ‘‘(B) participates in any business or orga17 nized activity that involves handling cannabis or 

18 cannabis products, including cultivating, pro19 ducing, manufacturing, selling, transporting, 

20 displaying, dispensing, distributing, or pur21 chasing cannabis or cannabis products. 

22 ‘‘(3) SERVICE PROVIDER.—The term ‘service 

23 provider’— 

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

25 other person that— 


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1 ‘‘(i) sells goods or services to a can2 nabis-related legitimate business; or 

3 ‘‘(ii) provides any business services, 

4 including the sale or lease of real or any 

5 other property, legal or other licensed serv6 ices, or any other ancillary service, relating 

7 to cannabis; and 

8 ‘‘(B) does not include a business, organiza9 tion, or other person that participates in any 

10 business or organized activity that involves han11 dling cannabis or cannabis products, including 

12 cultivating, producing, manufacturing, selling, 

13 transporting, displaying, dispensing, distrib14 uting, or purchasing cannabis or cannabis prod15 ucts.’’. 

16 (b) SMALL BUSINESS DEVELOPMENT CENTERS.— 

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

18 648(c)) is amended by adding at the end the following new 

19 paragraph: 

20 ‘‘(9) SERVICES FOR CANNABIS-RELATED LE21 GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

22 A small business development center may not decline 

23 to provide services to an otherwise eligible small 

24 business concern under this section solely because 


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1 such concern is a cannabis-related legitimate busi2 ness or service provider.’’. 

3 (c) WOMEN’S BUSINESS CENTERS.—Section 29 of 

4 the Small Business Act (15 U.S.C. 656) is amended by 

5 adding at the end the following new subsection: 

6 ‘‘(p) SERVICES FOR CANNABIS-RELATED LEGITI7 MATE BUSINESSES AND SERVICE PROVIDERS.—A wom8 en’s business center may not decline to provide services 

9 to an otherwise eligible small business concern under this 

10 section solely because such concern is a cannabis-related 

11 legitimate business or service provider.’’. 

12 (d) SCORE.—Section 8(b)(1)(B) of the Small Busi13 ness Act (15 U.S.C. 637(b)(1)(B)) is amended by adding 

14 at the end the following new sentence: ‘‘The head of the 

15 SCORE program established under this subparagraph 

16 may not decline to provide services to an otherwise eligible 

17 small business concern solely because such concern is a 

18 cannabis-related legitimate business or service provider.’’. 

19 (e) VETERAN BUSINESS OUTREACH CENTERS.—Sec20 tion 32 of the Small Business Act (15 U.S.C. 657b) is 

21 amended by adding at the end the following new sub22 section: 

23 ‘‘(h) SERVICES FOR CANNABIS-RELATED LEGITI24 MATE BUSINESSES AND SERVICE PROVIDERS.—A Vet25 eran Business Outreach Center may not decline to provide 


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1 services to an otherwise eligible small business concern 

2 under this section solely because such concern is a can3 nabis-related legitimate business or service provider.’’. 

4 (f) 7(a) LOANS.—Section 7(a) of the Small Business 

5 Act (15 U.S.C. 636(a)) is amended by adding at the end 

6 the following new paragraph: 

7 ‘‘(36) LOANS TO CANNABIS-RELATED LEGITI8 MATE BUSINESSES AND SERVICE PROVIDERS.—The 

9 Administrator may not decline to provide a guar10 antee for a loan under this subsection to an other11 wise eligible small business concern solely because 

12 such concern is a cannabis-related legitimate busi13 ness or service provider.’’. 

14 (g) DISASTER LOANS.—Section 7(b) of the Small 

15 Business Act (15 U.S.C. 636(b)) is amended by inserting 

16 after paragraph (15) the following new paragraph: 

17 ‘‘(16) ASSISTANCE TO CANNABIS-RELATED LE18 GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

19 The Administrator may not decline to provide assist20 ance under this subsection to an otherwise eligible 

21 borrower solely because such borrower is a cannabis22 related legitimate business or service provider.’’. 

23 (h) MICROLOANS.—Section 7(m) of the Small Busi24 ness Act (15 U.S.C. 636(m)) is amended by adding at the 

25 end the following new paragraph: 


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1 ‘‘(14) ASSISTANCE TO CANNABIS-RELATED LE2 GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 

3 An eligible intermediary may not decline to provide 

4 assistance under this subsection to an otherwise eli5 gible borrower solely because such borrower is a can6 nabis-related legitimate business or service pro7 vider.’’. 

8 (i) STATE OR LOCAL DEVELOPMENT COMPANY

9 LOANS.—Title V of the Small Business Investment Act 

10 of 1958 (15 U.S.C. 695 et seq.) is amended by adding 

11 at the end the following new section: 

12 ‘‘SEC. 511. LOANS TO CANNABIS-RELATED LEGITIMATE 

13 BUSINESSES AND SERVICE PROVIDERS. 

14 ‘‘The Administrator may not decline to provide a 

15 guarantee for a loan under this title to an otherwise eligi16 ble State or local development company solely because 

17 such State or local development company provides financ18 ing to an entity that is a cannabis-related legitimate busi19 ness or service provider (as defined in section 3(ff) of the 

20 Small Business Act).’’. 

21 SEC. 7. NO DISCRIMINATION IN THE PROVISION OF A FED22 ERAL PUBLIC BENEFIT ON THE BASIS OF 

23 CANNABIS. 

24 (a) IN GENERAL.—No person may be denied any 

25 Federal public benefit (as such term is defined in section 


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1 401(c) of the Personal Responsibility and Work Oppor2 tunity Reconciliation Act of 1996 (8 U.S.C. 1611(c))) on 

3 the basis of any use or possession of cannabis, or on the 

4 basis of a conviction or adjudication of juvenile delin5 quency for a cannabis offense, by that person. 

6 (b) SECURITY CLEARANCES.—Federal agencies may 

7 not use past or present cannabis or marijuana use as cri8 teria for granting, denying, or rescinding a security clear9 ance. 

10 SEC. 8. NO ADVERSE EFFECT FOR PURPOSES OF THE IMMI11 GRATION LAWS. 

12 (a) IN GENERAL.—For purposes of the immigration 

13 laws (as such term is defined in section 101 of the Immi14 gration and Nationality Act), cannabis may not be consid15 ered a controlled substance, and an alien may not be de16 nied any benefit or protection under the immigration laws 

17 based on any event, including conduct, a finding, an ad18 mission, addiction or abuse, an arrest, a juvenile adjudica19 tion, or a conviction, relating to cannabis, regardless of 

20 whether the event occurred before, on, or after the effec21 tive date of this Act. 

22 (b) CANNABIS DEFINED.—The term ‘‘cannabis’’— 

23 (1) means all parts of the plant Cannabis sativa 

24 L., whether growing or not; the seeds thereof; the 

25 resin extracted from any part of such plant; and 


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1 every compound, manufacture, salt, derivative, mix2 ture, or preparation of such plant, its seeds or resin; 

3 and 

4 (2) does not include— 

5 (A) hemp, as defined in section 297A of 

6 the Agricultural Marketing Act of 1946; or 

7 (B) the mature stalks of such plant, fiber 

8 produced from such stalks, oil or cake made 

9 from the seeds of such plant, any other com10 pound, manufacture, salt, derivative, mixture, 

11 or preparation of such mature stalks (except 

12 the resin extracted therefrom), fiber, oil, or 

13 cake, or the sterilized seed of such plant which 

14 is incapable of germination. 

15 (c) CONFORMING AMENDMENTS TO IMMIGRATION

16 AND NATIONALITY ACT.—The Immigration and Nation17 ality Act (8 U.S.C. 1101 et seq.) is amended— 

18 (1) in section 212(h), by striking ‘‘and subpara19 graph (A)(i)(II) of such subsection insofar as it re20 lates to a single offense of simple possession of 30 

21 grams or less of marijuana’’; 

22 (2) in section 237(a)(2)(B)(i), by striking 

23 ‘‘other than a single offense involving possession for 

24 one’s own use of 30 grams or less of marijuana’’; 


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1 (3) in section 101(f)(3), by striking ‘‘(except as 

2 such paragraph relates to a single offense of simple 

3 possession of 30 grams or less of marihuana)’’; 

4 (4) in section 244(c)(2)(A)(iii)(II) by striking 

5 ‘‘except for so much of such paragraph as relates to 

6 a single offense of simple possession of 30 grams or 

7 less of marijuana’’; 

8 (5) in section 245(h)(2)(B) by striking ‘‘(except 

9 for so much of such paragraph as related to a single 

10 offense of simple possession of 30 grams or less of 

11 marijuana)’’; 

12 (6) in section 210(c)(2)(B)(ii)(III) by striking 

13 ‘‘, except for so much of such paragraph as relates 

14 to a single offense of simple possession of 30 grams 

15 or less of marihuana’’; and 

16 (7) in section 245A(d)(2)(B)(ii)(II) by striking 

17 ‘‘, except for so much of such paragraph as relates 

18 to a single offense of simple possession of 30 grams 

19 or less of marihuana’’. 

20 SEC. 9. RESENTENCING AND EXPUNGEMENT. 

21 (a) EXPUNGEMENT OF FEDERAL CANNABIS OF22 FENSE CONVICTIONS FOR INDIVIDUALS NOT UNDER A

23 CRIMINAL JUSTICE SENTENCE.— 

24 (1) IN GENERAL.—Not later than 1 year after 

25 the date of the enactment of this Act, each Federal 


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1 district shall conduct a comprehensive review and 

2 issue an order expunging each conviction or adju3 dication of juvenile delinquency for a Federal can4 nabis offense entered by each Federal court in the 

5 district before the date of enactment of this Act and 

6 on or after May 1, 1971. Each Federal court shall 

7 also issue an order expunging any arrests associated 

8 with each expunged conviction or adjudication of ju9 venile delinquency. 

10 (2) NOTIFICATION.—To the extent practicable, 

11 each Federal district shall notify each individual 

12 whose arrest, conviction, or adjudication of delin13 quency has been expunged pursuant to this sub14 section that their arrest, conviction, or adjudication 

15 of juvenile delinquency has been expunged, and the 

16 effect of such expungement. 

17 (3) RIGHT TO PETITION COURT FOR

18 EXPUNGEMENT.—At any point after the date of en19 actment of this Act, any individual with a prior con20 viction or adjudication of juvenile delinquency for a 

21 Federal cannabis offense, who is not under a crimi22 nal justice sentence, may file a motion for 

23 expungement. If the expungement of such a convic24 tion or adjudication of juvenile delinquency is re25 quired pursuant to this Act, the court shall expunge 


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1 the conviction or adjudication, and any associated 

2 arrests. If the individual is indigent, counsel shall be 

3 appointed to represent the individual in any pro4 ceedings under this subsection. 

5 (4) SEALED RECORD.—The court shall seal all 

6 records related to a conviction or adjudication of ju7 venile delinquency that has been expunged under 

8 this subsection. Such records may only be made 

9 available by further order of the court. 

10 (b) SENTENCING REVIEW FOR INDIVIDUALS UNDER

11 A CRIMINAL JUSTICE SENTENCE.— 

12 (1) IN GENERAL.—For any individual who is 

13 under a criminal justice sentence for a Federal can14 nabis offense, the court that imposed the sentence 

15 shall, on motion of the individual, the Director of 

16 the Bureau of Prisons, the attorney for the Govern17 ment, or the court, conduct a sentencing review 

18 hearing. If the individual is indigent, counsel shall 

19 be appointed to represent the individual in any sen20 tencing review proceedings under this subsection. 

21 (2) POTENTIAL REDUCED RESENTENCING.— 

22 After a sentencing hearing under paragraph (1), a 

23 court shall— 

24 (A) expunge each conviction or adjudica25 tion of juvenile delinquency for a Federal canVerDate Sep 11 2014 19:17 Jul 31, 2019 Jkt 089200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H3884.IH H3884

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1 nabis offense entered by the court before the 

2 date of enactment of this Act, and any associ3 ated arrest; 

4 (B) vacate the existing sentence or disposi5 tion of juvenile delinquency and, if applicable, 

6 impose any remaining sentence or disposition of 

7 juvenile delinquency on the individual as if this 

8 Act, and the amendments made by this Act, 

9 were in effect at the time the offense was com10 mitted; and 

11 (C) order that all records related to a con12 viction or adjudication of juvenile delinquency 

13 that has been expunged or a sentence or dis14 position of juvenile delinquency that has been 

15 vacated under this Act be sealed and only be 

16 made available by further order of the court. 

17 (c) EFFECT OF EXPUNGEMENT.—An individual who 

18 has had an arrest, a conviction, or juvenile delinquency 

19 adjudication expunged under this section— 

20 (1) may treat the arrest, conviction, or adju21 dication as if it never occurred; and 

22 (2) shall be immune from any civil or criminal 

23 penalties related to perjury, false swearing, or false 

24 statements, for a failure to disclose such arrest, con25 viction, or adjudication. 


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1 (d) DEFINITIONS.—In this section: 

2 (1) The term ‘‘Federal cannabis offense’’ means 

3 an offense that is no longer punishable pursuant to 

4 this Act or the amendments made under this Act. 

5 (2) The term ‘‘expunge’’ means, with respect to 

6 an arrest, a conviction, or a juvenile delinquency ad7 judication, the removal of the record of such arrest, 

8 conviction, or adjudication from each official index 

9 or public record. 

10 (3) The term ‘‘under a criminal justice sen11 tence’’ means, with respect to an individual, that the 

12 individual is serving a term of probation, parole, su13 pervised release, imprisonment, official detention, 

14 pre-release custody, or work release, pursuant to a 

15 sentence or disposition of juvenile delinquency im16 posed on or after the effective date of the Controlled 

17 Substances Act (May 1, 1971). 

18 SEC. 10. REFERENCES IN EXISTING LAW TO MARIJUANA OR 

19 MARIHUANA. 

20 Wherever, in the statutes of the United States or in 

21 the rulings, regulations, or interpretations of various ad22 ministrative bureaus and agencies of the United States— 

23 (1) there appears or may appear the term 

24 ‘‘marihuana’’ or ‘‘marijuana’’, that term shall be 


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1 struck and the term ‘‘cannabis’’ shall be inserted; 

2 and 

3 (2) there appears or may appear the term 

4 ‘‘Marihuana’’ or ‘‘Marijuana’’, that term shall be 

5 struck and the term ‘‘Cannabis’’ shall be inserted. 

6 SEC. 11. SEVERABILITY. 

7 If any provision of this Act or an amendment made 

8 by this Act, or any application of such provision to any 

9 person or circumstance, is held to be unconstitutional, the 

10 remainder of this Act, the amendments made by this Act, 

11 and the application of this Act and the amendments made 

12 by this Act to any other person or circumstance shall not 

13 be affected. 

14 SEC. 12. CANNABIS OFFENSE DEFINED. 

15 For purposes of this Act, the term ‘‘cannabis offense’’ 

16 means a criminal offense related to cannabis— 

17 (1) that, under Federal law, is no longer pun18 ishable pursuant to this Act or the amendments 

19 made under this Act; or 

20 (2) that, under State law, is no longer an of21 fense or that was designated a lesser offense or for 

22 which the penalty was reduced under State law pur23 suant to or following the adoption of a State law au24 thorizing the sale or use of cannabis. 


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1 SEC. 13. RULEMAKING. 

2 Unless otherwise provided in this Act, not later than 

3 1 year after the date of enactment of this Act, the Depart4 ment of the Treasury, the Department of Justice, and the 

5 Small Business Administration shall issue or amend any 

6 rules, standard operating procedures, and other legal or 

7 policy guidance necessary to carry out implementation of 

8 this Act. After the 1-year period, any publicly issued sub9 regulatory guidance, including any compliance guides, 

10 manuals, advisories and notices, may not be issued with11 out 60-day notice to appropriate congressional commit12 tees. Notice shall include a description and justification 

13 for additional guidance. 

Æ 


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