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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 420 Introduced in House (IH)]

<DOC>

116th CONGRESS
  1st Session
                                H. R. 420

  To provide for the regulation of marijuana products, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 9, 2019

Mr. Blumenauer introduced the following bill; which was referred to the 
Committee on the Judiciary, and in addition to the Committees on Energy 
and Commerce, Ways and Means, Natural Resources, and Agriculture, 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 provide for the regulation of marijuana products, 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 ``Regulate Marijuana Like Alcohol 
Act''.

                          TITLE II--REGULATION

 Subtitle A--Amendments To Decriminalize Marijuana at the Federal Level

SEC. 201. DECRIMINALIZATION OF MARIJUANA.

    (a) Removal From Schedule of Controlled Substances.--
Notwithstanding any other provision of the Controlled Substances Act 
(21 U.S.C. 801 et seq.), the Attorney General shall, not later than 60 
days after the date of the enactment of this Act, issue a final order 
that removes marijuana in any form from all schedules under section 
202(c) of that Act (21 U.S.C. 812(c)).
    (b) Conforming Amendment To Remove Legislative Deadwood.--
Subsection (c) of section 202 of the Controlled Substances Act (21 
U.S.C. 812) is amended to read as follows:
    ``(c) Cross Reference to Schedules of Controlled Substances.--
Schedules I, II, III, IV, and V shall consist of the drugs and other 
substances (by whatever official name, common or usual name, chemical 
name, or brand name designated) that are set forth in the respective 
schedules in part 1308 of title 21, Code of Federal Regulations, as 
they may be amended from time to time, or in any successor 
regulation.''.

SEC. 202. APPLICATION OF THE CONTROLLED SUBSTANCES ACT AND CONTROLLED 
              SUBSTANCES IMPORT AND EXPORT ACT TO MARIJUANA.

    Part A of the Controlled Substances Act (21 U.S.C. 801 et seq.) is 
amended by adding at the end the following:

``SEC. 103. APPLICATION TO MARIHUANA.

    ``(a) General Nonapplication.--Except as provided in this section, 
this title and title III do not apply to marihuana.
    ``(b) Exception: Prohibition on Certain Transportations and 
Shipments.--It shall be unlawful to ship or transport marihuana from 
any place outside a State, territory, or district of the United States, 
or other place noncontiguous to but subject to the jurisdiction of the 
United States, into that State, territory, or district of the United 
States, or place, when such marihuana is intended by any person 
interested therein to be received, possessed, sold, or in any manner 
used, in violation of any law of such State, territory, district, or 
place.
    ``(c) Penalty.--Whoever knowingly violates subsection (b) shall be 
fined under title 18, United States Code, or imprisoned not more than 
one year, or both.''.

SEC. 203. CONFORMING AND ANCILLARY AMENDMENTS.

    (a) Modification of Definition of ``Felony Drug Offense''.--Section 
102(44) of the Controlled Substances Act (21 U.S.C. 802(44)) is amended 
by striking ``marihuana,''.
    (b) Elimination of Marijuana Penalty Provisions.--Part D of the 
Controlled Substances Act (21 U.S.C. 841 et seq.) is amended--
            (1) in section 401--
                    (A) by striking subsection (b)(1)(A)(vii);
                    (B) by striking subsection (b)(1)(B)(vii);
                    (C) by striking subsection (b)(1)(D); and
                    (D) by striking subsection (b)(4);
            (2) in section 402(c)(2)(B), by striking ``marihuana,'';
            (3) in section 403(d)(1), by striking ``marihuana,'';
            (4) in section 418(a), by striking the last sentence;
            (5) in section 419(a), by striking the last sentence;
            (6) in section 422(d), in the matter preceding paragraph 
        (1), by striking ``marijuana,''; and
            (7) in section 422(d)(5), by striking ``, such as a 
        marihuana cigarette,''.
    (c) Removal of Prohibition on Import and Export.--Section 1010 of 
the Controlled Substances Import and Export Act (21 U.S.C. 960) is 
amended--
            (1) by striking subparagraph (G) of subsection (b)(1);
            (2) by striking subparagraph (G) of subsection (b)(2); and
            (3) by striking paragraph (4) of subsection (b).
    (d) Limiting the Application of the National Forest System Drug 
Control Act of 1986 to Controlled Substances Other Than Marijuana.--The 
National Forest System Drug Control Act of 1986 is amended--
            (1) in section 15002(a) (16 U.S.C. 559b(a)) by striking 
        ``marijuana and other'';
            (2) in section 15003(2) (16 U.S.C. 559c(2)) by striking 
        ``marijuana and other''; and
            (3) in section 15004(2) (16 U.S.C. 559d(2)) by striking 
        ``marijuana and other''.
    (e) Interception of Communications.--Section 2516 of title 18, 
United States Code, is amended--
            (1) in subsection (1)(e), by striking ``marihuana,''; and
            (2) in subsection (2) by striking ``marihuana,''.
    (f) National Youth Anti-Drug Media Campaign.--Section 709 of the 
Office of National Drug Control Policy Reauthorization Act of 1998 (21 
U.S.C. 1708) is amended by striking subsection (j) (relating to 
prevention of marijuana use).

      Subtitle B--Federal Marijuana Licensing and Related Matters

SEC. 211. FEDERAL MARIJUANA ADMINISTRATION.

    The Federal Alcohol Administration Act (27 U.S.C. 201 et seq.) is 
amended by adding at the end the following:

                         ``TITLE III--MARIJUANA

``SEC. 301. UNLAWFUL BUSINESSES WITHOUT MARIJUANA PERMIT.

    ``(a) Import.--It shall be unlawful, except pursuant to a permit 
issued under this title by the Secretary of the Treasury (hereinafter 
in this title referred to as the `Secretary')--
            ``(1) to engage in the business of importing marijuana into 
        the United States; or
            ``(2) for any person so engaged to sell, offer or deliver 
        for sale, contract to sell, or ship, in interstate or foreign 
        commerce, directly or indirectly or through an affiliate, 
        marijuana so imported.
    ``(b) Manufacture and Sale.--It shall be unlawful, except pursuant 
to a permit issued under this title by the Secretary--
            ``(1) to engage in the business of cultivating, producing, 
        manufacturing, packaging, or warehousing marijuana; or
            ``(2) for any person so engaged to sell, offer or deliver 
        for sale, contract to sell, or ship, in interstate or foreign 
        commerce, directly or indirectly or through an affiliate, 
        marijuana so cultivated, produced, manufactured, packaged, or 
        warehoused.
    ``(c) Resale.--It shall be unlawful, except pursuant to a permit 
issued under this title by the Secretary--
            ``(1) to engage in the business of purchasing marijuana for 
        resale at wholesale; or
            ``(2) for any person so engaged to receive or to sell, 
        offer or deliver for sale, contract to sell, or ship, in 
        interstate or foreign commerce, directly or indirectly or 
        through an affiliate, marijuana so purchased.
    ``(d) Remedies for Violations.--
            ``(1) Criminal fine.--
                    ``(A) Generally.--Whoever violates this section 
                shall be fined not more than $1,000.
                    ``(B) Settlement in compromise.--The Secretary may 
                decide not to refer a violation of this section to the 
                Attorney General for prosecution but instead to collect 
                a payment from the violator of no more than $500 for 
                that violation.
            ``(2) Civil action for relief.--The Attorney General may, 
        in a civil action, obtain appropriate relief to prevent and 
        restrain a violation of this title.

``SEC. 302. PROCEDURE FOR ISSUANCE OF MARIJUANA PERMITS.

    ``(a) Who Entitled to Permit.--
            ``(1) Generally.--The Secretary shall issue a permit for 
        operations requiring a permit under section 301 unless the 
        Secretary finds that--
                    ``(A) the applicant (or if the applicant is a 
                corporation, any of its officers, directors, or 
                principal stockholders) has been convicted of a 
                disqualifying offense;
                    ``(B) the applicant is, by reason of business 
                experience, financial standing, or trade connections, 
                not likely to commence operations within a reasonable 
                period or to maintain such operations in conformity 
                with Federal law; or
                    ``(C) the operations proposed to be conducted by 
                the applicant are in violation of the law of the State 
                in which they are to be conducted.
            ``(2) Disqualifying offenses.--For the purposes of 
        paragraph (1)--
                    ``(A) Generally.--Except as provided in 
                subparagraph (B) a disqualifying offense is an offense 
                related to the production, consumption, or sale of 
                marijuana that is--
                            ``(i) a felony under Federal or State law, 
                        if the conviction occurred not later than 5 
                        years before the date of the application; or
                            ``(ii) a misdemeanor under Federal law, if 
                        the conviction occurred not later than 3 years 
                        before the date of the application.
                    ``(B) Excluded offenses.--A disqualifying offense 
                does not include a Federal or State offense based on 
                conduct that--
                            ``(i) was legal under State law in the 
                        State when and where the conduct took place; or
                            ``(ii) is, as of the date of the 
                        application, no longer an offense in that 
                        State.
    ``(b) Refusal of Permit; Hearing.--If upon examination of any 
application for a permit the Secretary has reason to believe that the 
applicant is not entitled to such permit, the Secretary shall so notify 
the applicant and, upon request by the applicant, afford the applicant 
due notice and opportunity for hearing on the application. If the 
Secretary, after affording such notice and opportunity for hearing, 
still finds that the applicant is not entitled to a permit hereunder, 
the Secretary shall by order deny the application stating the findings 
which are the basis for the order.
    ``(c) Form of Application.--
            ``(1) Generally.--The Secretary shall--
                    ``(A) prescribe the manner and form of applications 
                for permits under this title (including the facts to be 
                set forth in the application);
                    ``(B) prescribe the form of such permits; and
                    ``(C) specify in any permit the authority conferred 
                by the permit and the conditions of that permit in 
                accordance with this title.
            ``(2) Separate types of applications and permits.--To the 
        extent deemed necessary by the Secretary for the efficient 
        administration of this title, the Secretary may require 
        separate applications and permits with respect to the various 
        classes of marijuana, and with respect to the various classes 
        of persons entitled to permits under this title.
            ``(3) Disclaimer.--The issuance of a permit under this 
        title does not deprive the United States of any remedy for a 
        violation of law.
    ``(d) Conditions.--A permit under this title shall be conditioned 
upon--
            ``(1) compliance with all other Federal laws relating to 
        production, sale and consumption of marijuana, as well as 
        compliance with all State laws relating to said activities in 
        the State in which the permit applicant resides and does 
        business; and
            ``(2) payment to the Secretary of a reasonable permit fee 
        in an amount determined by the Secretary to be sufficient over 
        time to offset the cost of implementing and overseeing all 
        aspects of marijuana regulation by the Federal Government.
    ``(e) Revocation, Suspension, and Annulment.--
            ``(1) Generally.--After due notice and opportunity for 
        hearing, the Secretary may order a permit under this title--
                    ``(A) revoked or suspended for such period as the 
                Secretary deems appropriate, if the Secretary finds 
                that the permittee has willfully violated any of the 
                conditions of the permit, but for a first violation of 
                the conditions the permit shall be subject to 
                suspension only;
                    ``(B) revoked if the Secretary finds that the 
                permittee has not engaged in the operations authorized 
                by the permit for a period of more than 2 years; or
                    ``(C) annulled if the Secretary finds that the 
                permit was procured through fraud, or 
                misrepresentation, or concealment of material fact.
            ``(2) Order to state basis for order.--The order shall 
        state the findings which are the basis for the order.
    ``(f) Service of Orders.--Each order of the Secretary with respect 
to any denial of application, suspension, revocation, annulment, or 
other proceedings, shall be served--
            ``(1) in person by any officer or employee of the Secretary 
        designated by him or any internal revenue or customs officer 
        authorized by the Secretary for the purpose; or
            ``(2) by mailing the order by registered mail, addressed to 
        the applicant or respondent at his last known address in the 
        records of the Secretary.
    ``(g) Duration.--
            ``(1) General rule.--Except as otherwise provided in this 
        subsection, a permit issued under this title shall continue in 
        effect until suspended, revoked, or annulled as provided in 
        this title, or voluntarily surrendered.
            ``(2) Effect of transfer.--If operations under a permit 
        issued under this title are transferred, the permit 
        automatically terminates 30 days after the date of that 
        transfer, unless an application is made by the transferee 
        before the end of that period for a permit under this title for 
        those operations. If such an application is made, the 
        outstanding permit shall continue in effect until such 
        application is finally acted on by the Secretary.
            ``(3) Definition of transfer.--For the purposes of this 
        section, the term `transfer' means any change of ownership or 
        control, whether voluntary or by operation of law.
    ``(h) Judicial Review.--A permittee or applicant for a permit under 
this title may obtain judicial review under chapter 7 of title 5, 
United States Code, of the denial of the application of that applicant 
or, in the case of a permittee, the denial of an application by the 
transferee of that permittee.
    ``(i) Statute of Limitations.--
            ``(1) In general.--No proceeding for the suspension or 
        revocation of a permit for violation of any condition thereof 
        relating to compliance with Federal law shall be instituted by 
        the Secretary more than 18 months after conviction of the 
        violation of Federal law, or, if no conviction has been had, 
        more than 3 years after the violation occurred.
            ``(2) Compromise.--No permit shall be suspended or revoked 
        for a violation of any such condition thereof if the alleged 
        violation of Federal law has been compromised by any officer of 
        the Government authorized to compromise such violation.

``SEC. 303. DEFINITIONS.

    ``In this title--
            ``(1) the term `marijuana' has the meaning given the term 
        `marihuana' in section 102 of the Controlled Substances Act (21 
        U.S.C. 802); and
            ``(2) the term `State' includes the District of Columbia, 
        Puerto Rico, and any territory or possession of the United 
        States.''.

SEC. 212. ADDITION OF MARIJUANA TO CERTAIN LEGAL AUTHORITIES RELATING 
              TO INTOXICATING LIQUORS.

    (a) Wilson Act.--The Act of August 8, 1890 (commonly known as the 
Wilson Act or the Original Packages Act; 27 U.S.C. 121), is amended--
            (1) by inserting ``, or marijuana,'' after ``intoxicating 
        liquors or liquids''; and
            (2) by striking ``such liquids or liquors'' and inserting 
        ``such liquids, liquors, or marijuana''.
    (b) Webb-Kenyon Act.--The Act of March 1, 1913 (commonly known as 
the Webb-Kenyon Act; 27 U.S.C. 122), is amended--
            (1) by inserting ``marijuana or any'' after ``whatsoever, 
        of any''; and
            (2) by inserting ``marijuana or'' after ``which said''.
    (c) Victims of Trafficking and Violence Protection Act of 2000.--
Section 2 of the Victims of Trafficking and Violence Protection Act of 
2000 (27 U.S.C. 122a) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively; and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) the term `marijuana' has the meaning given the term 
        `marihuana' in section 102 of the Controlled Substances Act (21 
        U.S.C. 802);''; and
            (2) in subsections (b) and (c), by inserting ``or 
        marijuana'' after ``intoxicating liquor'' each place it 
        appears.

 Subtitle C--Other Amendments Relating to Federal Authority Regarding 
                               Marijuana

SEC. 221. FOOD AND DRUG ADMINISTRATION.

    The Food and Drug Administration shall have the same authorities 
with respect to marijuana as the Administration has with respect to 
alcohol.

SEC. 222. TRANSFERRING AGENCY FUNCTIONS WITH REGARD TO MARIJUANA.

    (a) Transfer of Jurisdiction From Drug Enforcement Administration 
to Bureau of Alcohol, Tobacco, Firearms and Explosives.--The functions 
of the Attorney General, acting through the Administrator of the Drug 
Enforcement Administration relating to marijuana enforcement, shall 
hereafter be administered by the Attorney General, acting through the 
Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
    (b) Redesignation of Bureau of Alcohol, Tobacco, Firearms and 
Explosives as Bureau of Alcohol, Tobacco, Marijuana, Firearms and 
Explosives.--
            (1) Redesignation.--The Bureau of Alcohol, Tobacco, 
        Firearms and Explosives is hereby renamed the ``Bureau of 
        Alcohol, Tobacco, Marijuana, Firearms and Explosives''.
            (2) References.--Any reference to the Bureau of Alcohol, 
        Tobacco, Firearms and Explosives in any law, regulation, map, 
        document, record, or other paper of the United States shall be 
        deemed to be a reference to the Bureau of Alcohol, Tobacco, 
        Marijuana, Firearms and Explosives.
    (c) Redesignation of Alcohol and Tobacco Tax and Trade Bureau as 
Alcohol, Tobacco, and Marijuana Tax and Trade Bureau.--
            (1) Redesignation.--The Alcohol and Tobacco Tax and Trade 
        Bureau is hereby renamed the ``Alcohol, Tobacco, and Marijuana 
        Tax and Trade Bureau''.
            (2) References.--Any reference to the Alcohol and Tobacco 
        Tax and Trade Bureau in any law, regulation, map, document, 
        record, or other paper of the United States shall be deemed to 
        be a reference to the Alcohol, Tobacco, and Marijuana Tax and 
        Trade Bureau.

SEC. 223. UNFAIR ADVERTISING PRACTICES.

    (a) In General.--It shall be unlawful for any person engaged in the 
business of importing marijuana into the United States, or cultivating, 
producing, manufacturing, packaging, or warehousing marijuana, or 
purchasing marijuana for resale at wholesale, directly or indirectly or 
through an affiliate, to publish or disseminate or cause to be 
published or disseminated by radio broadcast, or in any newspaper, 
periodical or other publication or by any sign or outdoor advertisement 
or any other printed or graphic matter, any advertisement of marijuana, 
if such advertisement is in, or is calculated to induce sales in, 
interstate or foreign commerce, or is disseminated by mail, unless such 
advertisement is in conformity with such regulations, to be prescribed 
by the Secretary of the Treasury, or the Secretary's delegate (referred 
to in this section as the ``Secretary''), as will--
            (1) prevent deception of the consumer with respect to the 
        products advertised and as will prohibit, irrespective of 
        falsity, such statements relating to manufacturing processes, 
        analyses, guaranties, and scientific or irrelevant matters as 
        the Secretary finds to be likely to mislead the consumer;
            (2) provide the consumer with adequate information as to 
        the identity and quality of the products advertised, the 
        characteristics thereof, and the person responsible for the 
        advertisement;
            (3) prohibit statements that are disparaging of a 
        competitor's products or are false, misleading, obscene, or 
        indecent; and
            (4) prevent statements inconsistent with any statement on 
        the labeling of the products advertised.
    (b) Nonapplication to Publishers and Broadcasters.--The 
prohibitions of this section and regulations thereunder shall not apply 
to the publisher of any newspaper, periodical, or other publication, or 
radio broadcaster, unless such publisher or radio broadcaster is 
engaged in the business of importing marijuana into the United States, 
or cultivating, producing, manufacturing, packaging, or warehousing 
marijuana, or purchasing marijuana for resale at wholesale, directly or 
indirectly or through an affiliate.

SEC. 224. COMPTROLLER GENERAL REVIEW OF LAWS AND REGULATIONS.

    The Comptroller General shall conduct a review of Federal laws, 
regulations, and policies to determine if any changes in them are 
desirable in the light of the purposes and provisions of this Act. Not 
later than 2 years after the date of the enactment of this Act, the 
Comptroller General shall make to Congress and the relevant agencies 
such recommendations relating to the results of that review as the 
Comptroller General deems appropriate.
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