the Federal Alcohol Administration Act (27 
U.S.C. 201 et seq.). 
‘‘(2) The term ‘State’ includes the District of 
Columbia, Puerto Rico, and any commonwealth, ter-
ritory, enclave, Indian tribe, or possession of the 
United States. 
‘‘SEC. 
360ggg–1. 
REGULATION 
OF 
MEDICAL 
CANNABIS 
PRODUCTS. 
‘‘(a) MEDICAL CANNABIS REGULATION
AND AU-
THORITY.—The Food and Drug Administration shall have 
jurisdiction over the regulation of designated State med-
ical cannabis products described herein. 
‘‘(b) CERTIFICATION OF DESIGNATED STATE MED-
ICAL CANNABIS PRODUCTS.— 
‘‘(1) SUBMISSION.—Beginning 30 days after 
the effective date of this Act, any person who seeks 
to initially introduce or deliver for introduction a 
designated State medical cannabis product into 
interstate commerce may file with the Secretary a 
request for certification as a designated State med-
ical cannabis product. Any such request shall con-
tain the following information: 
‘‘(A) A description of the designated State 
medical cannabis product. 
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‘‘(B) The name and address of the spon-
sor. 
‘‘(C) The name and address of the facility 
or facilities where the designated State medical 
cannabis product is or will be cultivated and 
manufactured. 
‘‘(D) Any other information deemed appro-
priate by the Secretary to determine whether 
the designated State medical cannabis product 
is in fact a designated State medical cannabis 
product. 
‘‘(2) GRANT OF CERTIFICATION.—The certifi-
cation requested under paragraph (1) is deemed to 
be granted unless, within 30 days of the filing of 
such request, the Secretary finds that— 
‘‘(A) the designated State medical can-
nabis product subject to the certification is not 
in fact a designated State medical cannabis 
product; 
‘‘(B) the request does not contain the in-
formation required under paragraph (1) or oth-
erwise lacks sufficient information to permit the 
Secretary to determine that the designated 
State medical cannabis product is in fact a des-
ignated State medical cannabis product; or 
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‘‘(C) denying the request is necessary to 
protect the public health. 
‘‘(3) EFFECT OF CERTIFICATION.— 
‘‘(A) IN GENERAL.— 
‘‘(i) APPROVED USES.—A designated 
State medical cannabis product for which a 
certification is granted under paragraph 
(2) is deemed, alone or in combination, as 
medically appropriate, with another des-
ignated State medical cannabis product or 
products for which a certification or certifi-
cations have been granted, to be sold in 
interstate commerce as a non-drug des-
ignated State medical cannabis product, 
for the following indications for use: 
‘‘(I) The treatment of arthritis. 
‘‘(II) The treatment of chemo-
therapy-induced 
and 
non-chemo-
therapy-induced nausea and vomiting. 
‘‘(III) The stimulation of appe-
tite. 
‘‘(IV) The treatment of the 
symptoms of patients with HIV/AIDS 
or for anorexia associated with AIDS. 
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‘‘(V) The treatment of temporary 
or chronic pain and analgesia. 
‘‘(VI) The treatment of muscle 
spasms. 
‘‘(VII) The treatment of insom-
nia and restlessness. 
‘‘(VIII) The treatment of post- 
traumatic stress disorder. 
‘‘(IX) The treatment of chronic 
pain due to sickle cell disease. 
‘‘(X) Any other indication for use 
consistent with State medical can-
nabis law and medical cannabis label-
ing practice in the State in which the 
product is to be sold to the end con-
sumer. 
‘‘(XI) Any other indication for 
use for a designated State medical 
cannabis product or combination of 
designated State medical cannabis 
products deemed appropriate by the 
Secretary, unless any period of exclu-
sivity for a new drug under clause (iii) 
or (iv) of section 355(c)(3)(E) of this 
title, clause (iii) or (iv) of section 
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355(j)(5)(F) of this title, or section 
360cc of this title, or the extension of 
any such period under section 355a of 
this title, applicable to such indication 
for use for such medical cannabis 
product or combination of products 
has not expired. 
‘‘(ii) LABELING.—The requirements 
of sections 353(b)(4) and 352(f) of this 
title are deemed to have been met for a 
designated State medical cannabis product 
if the labeling on the final use container 
for such medical cannabis product bears— 
‘‘(I) the information required by 
section 353(b)(4) of this title; 
‘‘(II) a warning statement con-
cerning the use of the medical can-
nabis products as determined by the 
Secretary by regulation; and 
‘‘(III) appropriate directions and 
warnings concerning storage and han-
dling. 
‘‘(B) INAPPLICABILITY
OF
EXCLUSIVITY 
PROVISIONS.— 
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‘‘(i) No exclusivity for a certified med-
ical cannabis product. No designated State 
medical cannabis product deemed under 
subparagraph (A)(i) to have in effect an 
approved application is eligible for any pe-
riod of exclusivity for a new drug under 
section 355(c), 355(j), or 360cc of this 
title, or the extension of any such period 
under section 355a of this title, on the 
basis of such deemed approval. 
‘‘(ii) EFFECT
ON
CERTIFICATION.— 
No period of exclusivity under section 
355(c), 355(j), or section 360cc of this 
title, or the extension of any such period 
under section 355a of this title, with re-
spect to an application for a drug product, 
shall prohibit, limit, or otherwise affect the 
submission, grant, or effect of a certifi-
cation under this section, except as pro-
vided in subsection (a)(3)(A)(i)(VIII) and 
section 360ddd(1)(H) of this title. 
‘‘(4) WITHDRAWAL, SUSPENSION, OR REVOCA-
TION OF APPROVAL.— 
‘‘(A) WITHDRAWAL, SUSPENSION
OF
AP-
PROVAL.—Nothing in this part limits the Sec-
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retary’s authority to withdraw or suspend ap-
proval of a drug product, including a designated 
State medical cannabis product deemed under 
this section to have in effect an approved appli-
cation under section 355 of this title or section 
360b of this title. 
‘‘(B) REVOCATION
OF
CERTIFICATION.— 
The Secretary may revoke the grant of a certifi-
cation under paragraph (2) if the Secretary de-
termines that the request for certification con-
tains any material omission or falsification. 
‘‘(5) PRESCRIPTION OR RECOMMENDATION RE-
QUIREMENT FOR DESIGNATED STATE MEDICAL CAN-
NABIS PRODUCTS.— 
‘‘(A) IN
GENERAL.—A designated State 
medical cannabis product is not approved for 
use without a prescription by a qualified med-
ical professional or a recommendation by a 
qualified medical professional as defined by the 
law of the State in which the qualified medical 
professional is providing said prescription or 
recommendation. 
‘‘(B) LABELING.—For medical cannabis 
products provided pursuant to subparagraph 
(A), the Secretary shall issue labeling require-
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ments within 90 days of the passage of this 
Act. 
‘‘(6) NO DRUG PRECLUSION.—Notwithstanding 
any other law, 21 U.S.C. 331(ll), the ‘drug pre-
clusion’ rule, shall not apply to ‘marihuana’, as de-
fined in 21 U.S.C. 802(16). Notwithstanding any 
other Federal law or provision of the Federal Food, 
Drug, and Cosmetic Act, the Food and Drug Admin-
istration shall treat cannabis without respect to the 
doctrine of drug preclusion. Nothing in this provi-
sion is meant to diminish or otherwise affect the 
ability of the Food and Drug Administration to reg-
ulate drug products (as defined in 21 U.S.C. 
321(g)), including those containing ‘marihuana’, (as 
defined in 21 U.S.C. 802(16)) that are intended and 
marketed for use as a ‘drug’ rather than a ‘des-
ignated State medical cannabis product’. 
‘‘(7) TIMELINE FOR RULEMAKING TO EFFEC-
TUATE PROVISION.—Within 30 days of the passage 
of this Act, the Food and Drug Administration shall 
promulgate an interim final rule and undertake rule-
making under the Administrative Procedure Act (5 
U.S.C. 500 et seq.) for the purposes of effectuating 
this provision, including any forms that may be re-
quired for application for certification. Such final 
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rule shall be promulgated within 90 days of the pub-
lication of the interim final rule. 
‘‘SEC. 360ggg–2. CANNABIS-INFUSED FOODS, BEVERAGES, 
AND SUPPLEMENTS. 
‘‘(a) NO
SUPPLEMENT/ADDITIVE
PRECLUSION.— 
Notwithstanding any other law, 21 U.S.C. 321(s)(6) shall 
not apply to ‘marihuana’, as defined in 21 U.S.C. 802(16), 
nor to ‘industrial hemp’, as defined in 7 U.S.C. 
5490(a)(2). Notwithstanding any other Federal law or 
provision of the Federal Food, Drug, and Cosmetic Act, 
the Food and Drug Administration shall treat cannabis 
without respect to the doctrine of dietary supplement and 
food additive preclusion. 
‘‘(b) CANNABIS-INFUSED DIETARY SUPPLEMENTS; 
CLASSIFICATION AS OLD DIETARY INGREDIENT.—Not-
withstanding any other law, ‘marihuana’, as defined in 21 
U.S.C. 802(16), and ‘industrial hemp’, as defined in 7 
U.S.C. 5490(a)(2), shall be deemed to have been marketed 
in the United States as a dietary ingredient before October 
15, 1994 for the purposes of 21 U.S.C. 350b(a), 350b(d). 
‘‘(1) Within 30 days of the passage of this Act, 
the Food and Drug Administration shall promulgate 
an interim final rule and undertake rulemaking 
under the Administrative Procedure Act (5 U.S.C. 
500 et seq.) for the purposes of establishing a stand-
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ard serving size and further clarifying intended con-
ditions of use of whole-plant cannabis extracts and 
individual cannabinoid extracts used as dietary sup-
plements. 
‘‘(2) Such final rule shall be promulgated with-
in 90 days of the publication of the interim final 
rule. 
‘‘(c) CANNABIS-INFUSED FOODS AND BEVERAGES; 
CLASSIFICATION AS GENERALLY SAFE THROUGH COM-
MON
EXPERIENCE.—Notwithstanding any other law, 
‘marihuana’, as defined in 21 U.S.C. 802(16), or ‘indus-
trial hemp’, as defined in 7 U.S.C. 5490(a)(2), shall be 
deemed to be generally recognized as safe through experi-
ence based on common use in food prior to January 1, 
1958, for the purposes of 21 U.S.C. 321(s) and 21 CFR 
170.30(a). Cannabis-infused foods and beverages, unless 
a designated State medical cannabis product, shall be con-
sidered as regulated under title III of the Federal Alcohol 
Administration Act (27 U.S.C. 201 et seq.). 
‘‘(1) Within 30 days of the passage of this Act, 
the Food and Drug Administration shall promulgate 
an interim final rule and undertake rulemaking 
under the Administrative Procedure Act (5 U.S.C. 
500 et seq.) for the purposes of establishing a stand-
ard serving size and further clarifying conditions of 
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intended use of whole-plant cannabis extracts and 
individual cannabinoid extracts used as food addi-
tives. 
‘‘(2) Such final rule shall be promulgated with-
in 90 days of the publication of the interim final 
rule. 
‘‘SEC. 360ggg–3. CANNABIS COSMETICS. 
‘‘(a) CANNABIS ALLOWED IN COSMETICS, ‘SAFE’.— 
The use of ‘marihuana’, as defined in 21 U.S.C. 802(16), 
and ‘industrial hemp’, as defined in 7 U.S.C. 5490(a)(2), 
alone in cosmetic products shall not cause a cosmetic to 
be adulterated within the meaning of 21 U.S.C. 361(a)– 
(e) provided that it is properly labeled and branded within 
the meaning of title 21, chapter 6 of the United States 
Code generally. 
‘‘(1) Within 30 days of the passage of this Act, 
the Food and Drug Administration shall promulgate 
an interim final rule and undertake rulemaking 
under the Administrative Procedure Act (5 U.S.C. 
500 et seq.) to effectuate this provision. 
‘‘(2) Such final rule shall be promulgated with-
in 90 days of the publication of the interim final 
rule. 
‘‘(b) RULE
OF CONSTRUCTION.—Notwithstanding 
section 360ggg–3(a) of this title, any cosmetic containing 
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‘marihuana’, as defined in 21 U.S.C. 802(16), and ‘indus-
trial hemp’, as defined in 7 U.S.C. 5490(a)(2), including 
any extract thereof, where the cannabis component actu-
ally renders it a poisonous or deleterious substance, inju-
rious to users under the conditions of use prescribed in 
the labeling thereof, or under such conditions of use as 
are customary or usual, may be considered adulterated 
within the meaning of 21 U.S.C. 361 and/or misbranded 
under 21 U.S.C. 362. 
‘‘SEC. 360ggg–4. LIABILITY AND METHOD OF PAYMENT. 
‘‘A designated State medical cannabis product, alone 
or in combination with another designated State medical 
cannabis product or products (as medically appropriate) 
deemed under section 360ggg–1 of this title to have in 
effect an approved application shall not be assessed fees 
under section 379h(a) or 379j–12(a) of this title on the 
basis of such deemed approval. 
‘‘SEC. 360ggg–5. PRIVATE RIGHT OF ACTION AND ADMINIS-
TRATIVE REMEDY. 
‘‘(a) RIGHT OF ACTION.—An adversely affected per-
son or business shall have private right of action under 
the Administrative Procedure Act (5 U.S.C. 500 et seq.) 
and the Mandamus Act (28 U.S.C. 1361) to compel the 
Administrator or any other officer, employee or agent of 
the Food and Drug Administration to promulgate regula-
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tions or undertake and finalize rulemaking required under 
this Act that are not promulgated or published within the 
time frames set forth herein, or to provide the certification 
of designated State medical cannabis products within the 
time frames set forth herein, or to enjoin agency action. 
The exclusive venue for bringing any such action shall be 
the District Court for the District of Columbia. Upon 
demonstration of undue delay or failure to adhere strictly 
to statutory deadlines, or other violations of law and eq-
uity, equitable relief in the form of a writ of mandamus 
compelling action shall issue, among such other relief as 
the court may see fit.’’. 
TITLE IV—SMALL BUSINESS 
ADMINISTRATION PROVISIONS 
SEC. 401. FAIR SMALL BUSINESS ADMINISTRATION ACCESS. 
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
LEGITI-
MATE BUSINESSES AND SERVICE PROVIDERS.— 
‘‘(A) IN
GENERAL.—The Administrator 
may not decline to provide a guarantee for a 
loan under this subsection to an otherwise eligi-
ble small business concern solely because such 
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concern is a cannabis-related legitimate busi-
ness or service provider. 
‘‘(B) DEFINITIONS.—In this paragraph: 
‘‘(i) CANNABIS.—The term ‘cannabis’ 
has the meaning given the term ‘mari-
huana’ in section 102 of the Controlled 
Substances Act. 
‘‘(ii) CANNABIS PRODUCT.—The term 
‘cannabis product’ means any article that 
contains cannabis, including an article that 
is a designated State medical cannabis 
product within the meaning of part J of 
subchapter V of chapter 9 of title 21 of the 
United States Code (the Federal Food, 
Drug, and Cosmetic Act). 
‘‘(iii) 
CANNABIS-RELATED
LEGITI-
MATE BUSINESS.—The term ‘cannabis-re-
lated legitimate business’ means a can-
nabis farmer, cannabis producer, or any 
person or company that is a small business 
concern and that— 
‘‘(I) engages in any activity de-
scribed in subclause (II) pursuant to 
a law established by a State or a po-
litical subdivision of a State, as deter-
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mined by such State or political sub-
division; and 
‘‘(II) participates in any business 
or organized activity that involves 
handling cannabis or cannabis prod-
ucts, including cultivating, producing, 
manufacturing, selling, transporting, 
displaying, 
dispensing, 
retailing, 
wholesaling, 
distributing, 
or 
pur-
chasing cannabis or cannabis prod-
ucts. 
‘‘(iv) 
CANNABIS
PRODUCER.—The 
term ‘cannabis producer’ means a person 
who manufactures, compounds, converts, 
processes, prepares, or packages cannabis 
or cannabis products. 
‘‘(v) CANNABIS
FARMER.—The term 
‘cannabis farmer’ means a person who 
plants, cultivates, harvests, or in any way 
facilitates the natural growth of cannabis. 
‘‘(vi) SERVICE PROVIDER.—The term 
‘service provider’— 
‘‘(I) means a business, organiza-
tion, or other person that— 
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‘‘(aa) sells goods or services 
to a cannabis-related legitimate 
business; or 
‘‘(bb) provides any business 
services, including the sale or 
lease of real or any other prop-
erty, legal or other licensed serv-
ices, or any other ancillary serv-
ice, relating to cannabis; and 
‘‘(II) does not include a business, 
organization, or other person that 
participates in any business or orga-
nized activity that involves handling 
cannabis or cannabis products, includ-
ing cultivating, producing, manufac-
turing, 
selling, 
transporting, 
dis-
playing, dispensing, retailing, whole-
saling, distributing, or purchasing 
cannabis or cannabis products. 
‘‘(vii) 
STATE.—The 
term 
‘State’ 
means each of the several States, the Dis-
trict of Columbia, Puerto Rico, and any 
territory or possession of the United 
States.’’. 
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SEC. 402. DISASTER LOAN NONDISCRIMINATION. 
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 LE-
GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 
The Administrator may not decline to provide assist-
ance under this subsection to an otherwise eligible 
borrower solely because such borrower is a cannabis- 
related legitimate business or service provider (as 
defined in subsection (a)(36)).’’. 
SEC. 403. MICROLOAN NONDISCRIMINATION. 
Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)(13)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(14) ASSISTANCE TO CANNABIS-RELATED LE-
GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 
An eligible intermediary may not decline to provide 
assistance under this subsection to an otherwise eli-
gible borrower solely because such borrower is a can-
nabis-related legitimate business or service provider 
(as defined in subsection (a)(36)).’’. 
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SEC. 404. SMALL BUSINESS INVESTMENT COMPANY DEBEN-
TURE NONDISCRIMINATION. 
Part A of title III 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. 321. DEBENTURES TO FINANCE CANNABIS-RELATED 
BUSINESSES AND SERVICE PROVIDERS. 
‘‘(a) GUARANTEES.—The Administrator may not de-
cline to purchase or guarantee a debenture made under 
this title to an otherwise eligible small business investment 
company solely because such small business investment 
company provides financing to an entity that is a can-
nabis-related legitimate business or service provider (as 
defined in section 7(a)(38) of the Small Business Act). 
‘‘(b) OTHER ASSISTANCE.—A small business invest-
ment company may not decline to provide assistance under 
this title to an otherwise eligible small business solely be-
cause such business is a cannabis-related legitimate busi-
ness or service provider (as defined in section 7(a)(38) of 
the Small Business Act).’’. 
SEC. 405. STATE OR LOCAL DEVELOPMENT LOAN NON-DIS-
CRIMINATION. 
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: 
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‘‘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 eligi-
ble State or local development company solely because 
such State or local development company provides financ-
ing to an entity that is a cannabis-related legitimate busi-
ness or service provider (as defined in section 7(a)(36) of 
the Small Business Act).’’. 
SEC. 406. RULEMAKING AND DISBURSEMENT. 
Not later than 30 days after the date of the enact-
ment of this Act, the Administrator of the Small Business 
Administration shall issue or amend any rules or interim 
final rules, standard operating procedures, other legal or 
policy guidance necessary to carry out the requirements 
of this Act and the amendments made by this Act. The 
Administrator shall begin incurring obligations and dis-
bursing funds made available to the Administration for the 
purposes of carrying out this Act within 45 days of the 
enactment of this Act. 
SEC. 407. ADMINISTRATIVE PROCEDURE ACT AND MAN-
DAMUS REMEDIES. 
Should the Administrator fail to issue or amend any 
rules or interim final rules, standard operating procedures, 
other legal or policy guidance necessary to carry out the 
requirements of this Act and the amendments made by 
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this Act within the 30 days described above, or fail to 
make an application decision within thirty days of submis-
sion of a completed application, an applicant shall have 
the right to compel action under the Administrative Proce-
dure Act (5 U.S.C. 500 et seq.) and the Mandamus Act 
(28 U.S.C. 1361), in any United States district court 
where the applicant resides or does business or in the 
United States District Court for the District of Columbia. 
Should the applicant substantially prevail, such applicant 
shall be entitled to attorneys’ fees and costs associated 
with compelling a decision under this section. Such man-
damus remedy shall issue upon demonstration of failure 
to meet deadlines described herein. 
TITLE V—IMPOSITION OF 
CANNABIS EXCISE TAX 
SEC. 501. LAW ENFORCEMENT RETRAINING AND SUCCESS-
FUL SECOND CHANCES FUND. 
(a) ESTABLISHMENT OF FUND.—Subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following section: 
‘‘SEC. 9512. LAW ENFORCEMENT RETRAINING AND SUC-
CESSFUL SECOND CHANCES FUND. 
‘‘(a) CREATION OF LAW ENFORCEMENT RETRAINING 
AND SUCCESSFUL SECOND CHANCES FUND.—There is es-
tablished in the Treasury of the United States a fund to 
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be known as the ‘Law Enforcement Retraining and Suc-
cessful Second Chances Fund’ (referred to in this section 
as the ‘Law Enforcement and Second Chances Fund’), 
consisting of such amounts as may be appropriated or 
credited to such a fund as provided in this section or sec-
tion 9602(b). 
‘‘(b) AUTHORIZATION
OF
APPROPRIATIONS.—To 
carry out this section, there are authorized to be appro-
priated to the Law Enforcement and Second Chances 
Fund such sums as may be necessary to carry out the 
purposes of this subchapter for fiscal year 2022, to remain 
available until expended. 
‘‘(c) FUTURE FISCAL YEARS.—For the ten (10) fis-
cal years following fiscal year 2022, there is authorized 
to be appropriated to the Law Enforcement and Second 
Chances Fund such sums as may be necessary to carry 
out the purposes of this subchapter. 
‘‘(d) AVAILABILITY
OF LAW ENFORCEMENT
AND 
SECOND CHANCES FUND.—Amounts in the Law Enforce-
ment and Second Chances Fund shall be available, until 
expended, as provided under this section. 
‘‘(e) SET-ASIDES.— 
‘‘(1) CRISIS
STABILIZATION
AND
COMMUNITY 
REENTRY GRANT PROGRAM.—Of the amounts in the 
Law Enforcement and Second Chances Fund— 
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‘‘(A) 10% shall be set aside for grants 
made under section 3052(a) of part OO of the 
Omnibus Crime Control and Safe Streets Act of 
1968; and 
‘‘(B) 10% shall be set aside for grants 
made under section 3052(b) of part OO of the 
Omnibus Crime Control and Safe Streets Act of 
1968. 
‘‘(2) EDWARD BYRNE MEMORIAL JUSTICE AS-
SISTANCE GRANT PROGRAM.—Of the amounts in the 
Law Enforcement and Second Chances Fund, 10% 
shall be set aside for grants made under part A of 
title 34 of the United States Code. 
‘‘(3) COMMUNITY-ORIENTED
POLICING
SERV-
ICES HIRING PROGRAM.—Of the amounts in the Law 
Enforcement and Second Chances Fund, 10% shall 
be set aside for activities authorized by the Violent 
Crime Control and Law Enforcement Act of 1994 
(Public Law 103–322); the Omnibus Crime Control 
and Safe Streets Act of 1968 (‘the 1968 Act’); and 
the Violence Against Women and Department of 
Justice Reauthorization Act of 2005 (Public Law 
109–162) (‘the 2005 Act’). No less than 5% of this 
set-aside shall be directed towards grants made 
under section 1701 of title I of the 1968 Act (42 
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U.S.C. 3796dd) for the hiring and rehiring of addi-
tional career law enforcement officers under part Q 
of such title notwithstanding subsection (i) of such 
section. 
‘‘(4) SUCCESSFUL
SECOND
CHANCES
PRO-
GRAM.—Of the amounts in the Law Enforcement 
and Second Chances Fund, 30% shall be set aside 
for the Small Business Administrator to carry out 
the provisions of title IV of the States Reform Act. 
‘‘(5) VETERANS MENTAL HEALTH FUNDING.— 
Of the amounts in the Law Enforcement and Second 
Chances Fund, 10% shall be set aside for the Sec-
retary of the Veterans Affairs to carry out the provi-
sions of title 38 of the United States Code, section 
1720I(a) and 1720I(c). 
‘‘(6) STATE RESPONSE TO OPIOID ADDICTION 
FUNDING.—Of the amounts in the Law Enforcement 
and Second Chances Fund, 5% shall be set aside for 
the Secretary of Health and Human Services to 
carry out the provisions of title 42 of the United 
States Code, section 290ee–3. 
‘‘(7) UNDERAGE
YOUTH
USE
PREVENTION 
FUNDING.—Of the amounts in the Law Enforcement 
and Second Chances Fund, 5% shall be set aside for 
the Assistant Secretary for Mental Health and Sub-
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stance Use of the Substance Abuse and Mental 
Health Services Administration to help prevent un-
derage cannabis use in carrying out the provisions of 
title 42 of the United States Code. 
‘‘(f) ALLOTMENT.—All funds for carrying out the 
provisions of this chapter shall be available for allotment 
to bureaus and offices of the Department of Justice and 
the Small Business Administration, and for transfer to 
such other agencies of the Federal Government, and to 
such State agencies, as the Secretary of the Treasury may 
request to cooperate or assist in carrying out the provi-
sions of this chapter.’’. 
SEC. 502. CANNABIS REVENUE AND REGULATION ACT. 
Subtitle E of title I of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
chapter: 
‘‘CHAPTER 56—CANNABIS PRODUCTS 
‘‘SUBCHAPTER A—IMPOSITION OF TAX 
‘‘Sec. 5901. Imposition of tax. 
‘‘Sec. 5902. Definitions. 
‘‘Sec. 5903. Liability and method of payment. 
‘‘Sec. 5904. Exemption from tax. 
‘‘Sec. 5905. Credit, refund, or drawback of tax. 
‘‘SUBCHAPTER B—OPERATIONS 
‘‘Sec. 5911. Inventories, reports, and records. 
‘‘Sec. 5912. Packaging and labeling. 
‘‘Sec. 5913. Purchase, receipt, possession, or sale of cannabis products after re-
moval. 
‘‘Sec. 5914. Restrictions relating to marks, labels, notices, and packages. 
‘‘Sec. 5915. Restriction on importation of previously exported cannabis prod-
ucts. 
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‘‘SUBCHAPTER C—PENALTIES 
‘‘Sec. 5921. Civil penalties. 
‘‘Subchapter A—Imposition of Tax 
‘‘SEC. 5901. IMPOSITION OF TAX. 
‘‘(a) IMPOSITION OF EXCISE TAX.—There is hereby 
imposed on any cannabis product produced in or imported 
into the United States a tax equal to 3% percent of the 
removal price of such a cannabis product sold in the 
United States during the 12-month period ending one cal-
endar quarter before such calendar year. 
‘‘(b) MORATORIUM ON CANNABIS PRODUCT EXCISE 
TAX INCREASES.—There is hereby imposed, notwith-
standing any other law, including, but not limited to the 
Congressional Budget and Impoundment Control Act of 
1974 (Public Law 93–344, 88 Stat. 297, 2 U.S.C. 601– 
688), for the ten calendar years following the passage of 
this Act, a moratorium on increasing the excise tax im-
posed on cannabis products by this section 5901. 
‘‘(1) Such moratorium may be waived before 
the ten-year timeframe by a three-quarters vote to 
do so by both Houses of Congress. 
‘‘(c) REMOVAL PRICE CATEGORIES.— 
‘‘(1) IN GENERAL.—For the purposes of sub-
section (a), the Secretary shall impose the tax on the 
removal price— 
‘‘(A) per 454 grams of cannabis flower, 
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‘‘(B) per 100 grams of cannabis pre-rolls, 
‘‘(C) per 20 grams of cannabis extracts, 
‘‘(D) per 10 grams of cannabis vaporizer 
cartridges, 
‘‘(E) of 20 units of edible cannabis prod-
uct, and 
‘‘(F) of 20 units of cannabis topical or cos-
metic product. 
‘‘(2) NEW REMOVAL PRICE CATEGORIES AND 
BASIS.—For the purposes of subsection (c), the Sec-
retary may, under the processes of the Administra-
tive Procedure Act (5 U.S.C. 500 et seq.), undertake 
formal rulemaking to establish new removal price 
categories and bases for cannabis products that are 
not covered under subsection (c)(1). 
‘‘(3) CLARIFYING
RULEMAKING.—The Sec-
retary may, consistent with the Administrative Pro-
cedure Act (5 U.S.C. 500 et seq.), further clarify the 
application of subsection (c)(1). 
‘‘(d) TIME OF ATTACHMENT ON CANNABIS PROD-
UCTS.—The tax under this section shall attach to any can-
nabis product as soon as such product is in existence as 
such, whether it be subsequently separated or transferred 
into any other substance, either in the process of original 
production or by any subsequent process. Raw cannabis 
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not yet delivered to a producer for processing, manufac-
turing, or production shall not be considered a product 
in existence for the purposes of this subsection (d). 
‘‘SEC. 5902. DEFINITIONS. 
‘‘(a) DEFINITIONS RELATED TO CANNABIS PROD-
UCTS.—For purposes of this chapter: 
‘‘(1) CANNABIS PRODUCT.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘cannabis product’ 
means any article that contains or consists of 
cannabis. 
‘‘(B) EXCEPTIONS.—The term ‘cannabis 
product’ does not include an FDA-approved ar-
ticle, industrial hemp, or the unproduced, raw 
agricultural commodity of cannabis. 
‘‘(2) 
FDA-APPROVED
ARTICLE.—The 
term 
‘FDA-approved article’ means any article if the pro-
ducer or importer thereof demonstrates to the satis-
faction of the Secretary of Health and Human Serv-
ices that such article is— 
‘‘(A) a drug— 
‘‘(i) that is approved under section 
505 of the Federal Food, Drug, and Cos-
metic Act or licensed under section 351 of 
the Public Health Service Act, 
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‘‘(ii) for which an investigational use 
exemption has been authorized under sec-
tion 505(i) of the Federal Food, Drug, and 
Cosmetic Act or under section 351(a) of 
the Public Health Service Act, 
‘‘(B) a combination product (as described 
in section 503(g) of the Federal Food, Drug, 
and Cosmetic Act), the constituent parts of 
which were approved or cleared under section 
505, 510(k), or 515 of such Act, or 
‘‘(C) a ‘designated State medical cannabis 
product’ within the meaning of part J of sub-
chapter V of chapter 9 of title 21 of the United 
States Code (the Federal Food, Drug, and Cos-
metic Act). 
‘‘(3) CANNABIS.—The term ‘cannabis’ has the 
same meaning given to the term ‘marihuana’ under 
section 102(16) of the Controlled Substances Act, 
21 U.S.C. 802(16). 
‘‘(4) INDUSTRIAL HEMP.—The term ‘industrial 
hemp’ has the same meaning given to the term ‘in-
dustrial hemp’ in section 297A of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1621 et seq.) 
(codified at 7 U.S.C. 5940(b)(2)). 
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‘‘(b) DEFINITIONS RELATED TO CANNABIS BUSI-
NESSES AND PRODUCERS.—For purposes of this chapter: 
‘‘(1) CANNABIS BUSINESS.—The term ‘cannabis 
business’ means a producer, importer, or export 
warehouse proprietor. 
‘‘(2) PRODUCER.— 
‘‘(A) IN GENERAL.—The term ‘producer’ 
means any person who manufactures, produces, 
compounds, converts, processes, prepares, or 
packages any cannabis product. 
‘‘(B) PERSONAL USE EXCEPTION.—Subject 
to regulation prescribed by the Secretary, the 
term ‘producer’ shall not include any individual 
otherwise described in subparagraph (A) if the 
only cannabis product described in such sub-
paragraph with respect to such individual is for 
personal or family use and not for sale. 
‘‘(C) 
CANNABIS
FARMERS
NOT
PRO-
DUCERS.—A producer does not mean a person 
who plants, cultivates, harvests, grows the raw 
agricultural commodity of cannabis not yet fin-
ished into a produced article for consumption. 
This provision shall not be constructed as pre-
cluding a cannabis farmer from also being a 
cannabis producer within the same enterprise. 
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‘‘(ii) for consumption beyond the ju-
risdiction of the internal revenue laws of 
the United States. 
‘‘(5) CANNABIS
PRODUCTION
FACILITY.—The 
term ‘cannabis production facility’ means an estab-
lishment that is qualified under subchapter C to per-
form any operation for which such qualification is 
required under such subchapter. 
‘‘(c) OTHER DEFINITIONS.—For purposes of this 
chapter— 
‘‘(1) PRODUCE.—The term ‘produce’ includes 
any activity described in subsection (b)(2)(A). 
‘‘(2) REMOVAL; REMOVE.—The terms ‘removal’ 
or ‘remove’ mean— 
‘‘(A) the transfer of cannabis products 
from the premises of a producer (or the trans-
fer of such products from the premises of a pro-
ducer to the premises of such producer), 
‘‘(B) release of such products from cus-
toms custody, or 
‘‘(C) smuggling or other unlawful importa-
tion of such products into the United States. 
‘‘(3) REMOVAL
PRICE.—The term ‘removal 
price’ means— 
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‘‘(A) except as otherwise provided in this 
paragraph, the price for which the cannabis 
product is sold in the sale that occurs in con-
nection with the removal of such product, 
‘‘(B) in the case of any such sale that is 
described in section 5903(c), the price deter-
mined under such section, and 
‘‘(C) if there is no sale that occurs in con-
nection with such removal, the price that would 
be determined under section 5903(c) if such 
product were sold at a price that cannot be de-
termined. 
‘‘SEC. 5903. LIABILITY AND METHOD OF PAYMENT. 
‘‘(a) LIABILITY FOR TAX.— 
‘‘(1) ORIGINAL
LIABILITY.—The producer or 
importer of any cannabis product shall be liable for 
the taxes imposed thereon by section 5901. 
‘‘(2) TRANSFER OF LIABILITY.— 
‘‘(A) IN GENERAL.—When cannabis prod-
ucts are transferred, without payment of tax, 
pursuant to subsection (b) or (c) of section 
5904— 
‘‘(i) except as provided in clause (ii), 
the transferee shall become liable for the 
tax upon receipt by the transferee of such 
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100 
articles, and the transferor shall there- 
upon be relieved of their liability for such 
tax, and 
‘‘(ii) in the case of cannabis products 
that are released from customs custody for 
transfer to the premises of a producer, the 
transferee shall become liable for the tax 
on such articles upon release from customs 
custody, and the importer shall thereupon 
be relieved of their liability for such tax. 
‘‘(B) RETURN.—All provisions of this 
chapter applicable to cannabis products shall be 
applicable to such articles returned upon with-
drawal from the market or returned after pre-
vious removal for a tax-exempt purpose. 
‘‘(b) METHOD OF PAYMENT OF TAX.— 
‘‘(1) IN GENERAL.— 
‘‘(A) TAXES PAID ON BASIS OF RETURN.— 
The taxes imposed by section 5901 shall be 
paid on the basis of return. The Secretary shall, 
by regulations, prescribe the period or the event 
to be covered by such return and the informa-
tion to be furnished on such return. 
‘‘(B) APPLICATION TO TRANSFEREES.—In 
the case of any transfer to which subsection 
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101 
(a)(2)(A) applies, the tax under section 5901 on 
the transferee shall (if not otherwise relieved by 
reason of a subsequent transfer to which such 
subsection applies) be imposed with respect to 
the removal of the cannabis product from the 
premises of the transferee. 
‘‘(C) POSTPONEMENT.—Any postponement 
under this subsection of the payment of taxes 
determined at the time of removal shall be con-
ditioned upon compliance with such require-
ments, as the Secretary may prescribe for the 
protection of the revenue. The Secretary may, 
by regulations, require payment of tax on the 
basis of a return prior to removal of the can-
nabis products where a person defaults in the 
postponed payment of tax on the basis of a re-
turn under this subsection or regulations pre-
scribed thereunder. 
‘‘(D) ADMINISTRATION AND PENALTIES.— 
All administrative and penalty provisions of this 
title, as applicable, shall apply to any tax im-
posed by section 5901. 
‘‘(2) TIME FOR PAYMENT OF TAXES.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, in the case of taxes 
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102 
on cannabis products removed during any sem- 
imonthly period for deferred payment of tax, 
the last day for payment of such taxes shall be 
the 14th day after the last day of such semi- 
monthly period. 
‘‘(B) IMPORTED ARTICLES.—In the case of 
cannabis products that are imported into the 
United States, the following provisions shall 
apply: 
‘‘(i) IN GENERAL.—The last day for 
payment of tax shall be the 14th day after 
the last day of the semimonthly period 
during which the article is entered into the 
customs territory of the United States. 
‘‘(ii) SPECIAL RULE FOR ENTRY OF 
WAREHOUSING.—Except as provided in 
clause (iv), in the case of an entry for 
warehousing, the last day for payment of 
tax shall not be later than the 14th day 
after the last day of the semimonthly pe-
riod during which the article is removed 
from the first such warehouse. 
‘‘(iii) FOREIGN
TRADE
ZONES.—Ex-
cept as provided in clause (iv) and in regu-
lations prescribed by the Secretary, articles 
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103 
brought into a foreign trade zone shall, 
notwithstanding any other provision of law, 
be treated for purposes of this subsection 
as if such zone were a single customs 
warehouse. 
‘‘(iv) EXCEPTION FOR ARTICLES DES-
TINED FOR EXPORT.—Clauses (ii) and (iii) 
shall not apply to any article that is shown 
to the satisfaction of the Secretary to be 
destined for export. 
‘‘(C) CANNABIS PRODUCTS BROUGHT INTO 
THE UNITED STATES FROM PUERTO RICO.—In 
the case of cannabis products that are brought 
into the United States from Puerto Rico and 
subject to tax under section 7652, the last day 
for payment of tax shall be the 14th day after 
the last day of the semimonthly period during 
which the article is brought into the United 
States. 
‘‘(D) SPECIAL
RULE
WHERE
DUE
DATE 
FALLS ON SATURDAY, SUNDAY, OR HOLIDAY.— 
Notwithstanding section 7503, if, but for this 
subparagraph, the due date under this para-
graph would fall on a Saturday, Sunday, or a 
legal holiday (as defined in section 7503), such 
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