(A) in paragraph (1)— 
(i) in subparagraph (A)— 
(I) in clause (vi), by inserting 
‘‘or’’ after the semicolon; 
(II) by striking clause (vii); and 
(III) 
by 
redesignating 
clause 
(viii) as clause (vii); 
(ii) in subparagraph (B)— 
(I) in clause (vi), by inserting 
‘‘or’’ after the semicolon; 
(II) by striking clause (vii); and 
(III) 
by 
redesignating 
clause 
(viii) as clause (vii); 
(iii) in subparagraph (C), in the first 
sentence, by striking ‘‘subparagraphs (A), 
(B), and (D)’’ and inserting ‘‘subpara-
graphs (A) and (B)’’; 
(iv) by striking subparagraph (D); 
(v) by redesignating subparagraph (E) 
as subparagraph (D); and 
(vi) in subparagraph (D)(i), as so re-
designated, by striking ‘‘subparagraphs (C) 
and (D)’’ and inserting ‘‘subparagraph 
(C)’’; 
(B) by striking paragraph (4); and 
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(C) by redesignating paragraphs (5), (6), 
and (7) as paragraphs (4), (5), and (6), respec-
tively; 
(3) 
in 
section 
402(c)(2)(B) 
(21 
U.S.C. 
842(c)(2)(B)), by striking ‘‘, marihuana,’’; 
(4) in section 403(d)(1) (21 U.S.C. 843(d)(1)), 
by striking ‘‘, marihuana,’’; 
(5) in section 418(a) (21 U.S.C. 859(a)), by 
striking the last sentence; 
(6) in section 419(a) (21 U.S.C. 860(a)), by 
striking the last sentence; 
(7) in section 422(d) (21 U.S.C. 863(d))— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘marijuana,’’; and 
(B) in paragraph (5), by striking ‘‘, such 
as a marihuana cigarette,’’; and 
(8) in section 516(d) (21 U.S.C. 886(d)), by 
striking ‘‘section 401(b)(6)’’ each place the term ap-
pears and inserting ‘‘section 401(b)(5)’’. 
(c) OTHER CONFORMING AMENDMENTS.— 
(1) NATIONAL FOREST SYSTEM DRUG CONTROL 
ACT OF 1986.—The National Forest System Drug 
Control Act of 1986 (16 U.S.C. 559b et seq.) is 
amended— 
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(A) in section 15002(a) (16 U.S.C. 
559b(a)) by striking ‘‘marijuana and other’’; 
(B) in section 15003(2) (16 U.S.C. 
559c(2)) by striking ‘‘marijuana and other’’; 
and 
(C) in section 15004(2) (16 U.S.C. 
559d(2)) by striking ‘‘marijuana and other’’. 
(2) INTERCEPTION OF COMMUNICATIONS.—Sec-
tion 2516 of title 18, United States Code, is amend-
ed— 
(A) in subsection (1)(e), by striking ‘‘mari-
huana,’’; and 
(B) in subsection (2) by striking ‘‘mari-
huana’’. 
(3) FMCSA PROVISIONS.— 
(A) CONFORMING
AMENDMENT.—Section 
31301(5) of title 49, United States Code, is 
amended by striking ‘‘section 31306,’’ and in-
serting ‘‘sections 31306, 31306a, and sub-
sections (b) and (c) of section 31310,’’. 
(B) DEFINITION.—Section 31306(a) of 
title 49, United States Code, is amended— 
(i) by striking ‘‘means any substance’’ 
and inserting the following: ‘‘means— 
‘‘(A) any substance’’; and 
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(ii) by striking the period at the end 
and inserting ‘‘; and 
‘‘(B) any substance not covered under sub-
paragraph (A) that was a substance under such 
section as of December 1, 2018, and specified 
by the Secretary of Transportation.’’. 
(C) 
DISQUALIFICATIONS.—Section 
31310(b) of title 49, United States Code, is 
amended by adding at the end the following: 
‘‘(3) In this subsection and subsection (c), the 
term ‘controlled substance’ has the meaning given 
such term in section 31306(a).’’. 
(4) FAA PROVISIONS.—Section 45101 of title 
49, United States Code, is amended— 
(A) by striking ‘‘means any substance’’ 
and inserting the following: ‘‘means— 
‘‘(A) any substance’’; and 
(B) by striking the period at the end and 
inserting ‘‘; and 
‘‘(B) any substance not covered under sub-
paragraph (A) that was a substance under such 
section as of December 1, 2018, and specified 
by the Secretary of Transportation.’’. 
(5) FRA PROVISIONS.—Section 20140(a) of 
title 49, United States Code, is amended— 
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(A) by striking ‘‘means any substance’’ 
and inserting the following: ‘‘means— 
‘‘(A) any substance’’; and 
(B) by striking the period at the end and 
inserting ‘‘; and 
‘‘(B) any substance not covered under sub-
paragraph (A) that was a substance under such 
section as of December 1, 2018, and specified 
by the Secretary of Transportation.’’. 
(6) FTA PROVISIONS.—Section 5331(a)(1) of 
title 49, United States Code, is amended— 
(A) by striking ‘‘means any substance’’ 
and inserting the following: ‘‘means— 
‘‘(A) any substance’’; and 
(B) by striking the period at the end and 
inserting ‘‘; and 
‘‘(B) any substance not covered under sub-
paragraph (A) that was a substance under such 
section as of December 1, 2018, and whose use 
the Secretary of Transportation decides has a 
risk to transportation safety.’’. 
(d) RETROACTIVITY.—The amendments made by this 
section to the Controlled Substances Act (21 U.S.C. 801 
et seq.) are retroactive and shall apply to any offense com-
mitted, case pending, conviction entered, and, in the case 
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of a juvenile, any offense committed, case pending, or ad-
judication of juvenile delinquency entered before, on, or 
after the date of enactment of this Act. 
(e) EFFECT ON OTHER LAW.—Nothing in this sub-
title shall affect or modify— 
(1) the Federal Food, Drug, and Cosmetic Act 
(21 U.S.C. 301 et seq.); 
(2) section 351 of the Public Health Service 
Act (42 U.S.C. 262); or 
(3) the authority of the Commissioner of Food 
and Drugs and the Secretary of Health and Human 
Services— 
(A) under— 
(i) the Federal Food, Drug, and Cos-
metic Act (21 U.S. 301 et seq.); or 
(ii) section 351 of the Public Health 
Service Act (42 U.S.C. 262); or 
(B) to promulgate Federal regulations and 
guidelines that relate to products containing 
cannabis or cannabis-derived compounds under 
the Act described in subparagraph (A)(i) or the 
section described in subparagraph (A)(ii). 
(f) PUBLIC MEETINGS.—Not later than one year 
after the date of enactment of this Act, the Secretary of 
Health and Human Services, acting through the Commis-
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sioner of Food and Drugs, shall hold not less than one 
public meeting to address the regulation, safety, manufac-
turing, product quality, marketing, labeling, and sale of 
products containing cannabis or cannabis-derived com-
pounds. 
(g) SPECIAL RULE FOR FEDERAL EMPLOYEE TEST-
ING.—Section 503 of the Supplemental Appropriations 
Act, 1987 (5 U.S.C. 7301 note) is amended by adding at 
the end the following: 
‘‘(h) MARIJUANA.— 
‘‘(1) CONTINUED
TESTING.—Notwithstanding 
the 
Marijuana 
Opportunity 
Reinvestment 
and 
Expungement Act of 2021 and the amendments 
made thereby, the Secretary of Health and Human 
Services may continue to include marijuana for pur-
poses of drug testing of Federal employees subject 
to this section, Executive Order 12564, or other ap-
plicable Federal laws and orders. 
‘‘(2) DEFINITION.—The term ‘marijuana’ has 
the meaning given to the term ‘marihuana’ in sec-
tion 102 of the Controlled Substances Act (21 6 
U.S.C. 802) on the day before the date of enactment 
of the Marijuana Opportunity Reinvestment and 
Expungement Act of 2021.’’. 
(h) SPECIAL RULE FOR CERTAIN REGULATIONS.— 
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(1) IN GENERAL.—The amendments made by 
this section may not be construed to abridge the au-
thority of the Secretary of Transportation, or the 
Secretary of the department in which the Coast 
Guard is operating, to regulate and screen for the 
use of a controlled substance. 
(2) CONTROLLED
SUBSTANCE
DEFINED.—In 
this subsection, the term ‘‘controlled substance’’ 
means— 
(A) any substance covered under section 
102 of the Controlled Substances Act (21 
U.S.C. 802) on the day before the date of en-
actment of this Act; and 
(B) any substance not covered under sub-
paragraph (A) that was a substance covered 
under section 102 of the Controlled Substances 
Act (21 U.S.C. 802) on December 1, 2018, and 
specified by the Secretary of Transportation. 
SEC. 4. DEMOGRAPHIC DATA OF CANNABIS BUSINESS OWN-
ERS AND EMPLOYEES. 
(a) IN GENERAL.—The Bureau of Labor Statistics 
shall regularly compile, maintain, and make public data 
on the demographics of— 
(1) individuals who are business owners in the 
cannabis industry; and 
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(2) individuals who are employed in the can-
nabis industry. 
(b) DEMOGRAPHIC DATA.—The data collected under 
subsection (a) shall include data regarding— 
(1) age; 
(2) certifications and licenses; 
(3) disability status; 
(4) educational attainment; 
(5) family and marital status; 
(6) nativity; 
(7) race and Hispanic ethnicity; 
(8) school enrollment; 
(9) veteran status; and 
(10) sex. 
(c) CONFIDENTIALITY.—The name, address, and 
other identifying information of individuals employed in 
the cannabis industry shall be kept confidential by the Bu-
reau and not be made available to the public. 
(d) DEFINITIONS.—In this section: 
(1) CANNABIS.—The term ‘‘cannabis’’ means 
either marijuana or cannabis as defined under the 
State law authorizing the sale or use of cannabis in 
which the individual or entity is located. 
(2) CANNABIS INDUSTRY.—The term ‘‘cannabis 
industry’’ means an individual or entity that is li-
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censed or permitted under a State or local law to en-
gage in commercial cannabis-related activity. 
(3) OWNER.—The term ‘‘owner’’ means an in-
dividual or entity that is defined as an owner under 
the State or local law where the individual or busi-
ness is licensed or permitted. 
SEC. 5. CREATION OF OPPORTUNITY TRUST FUND AND IM-
POSITION OF TAXES WITH RESPECT TO CAN-
NABIS PRODUCTS. 
(a) ESTABLISHMENT OF TRUST FUND.—Subchapter 
A of chapter 98 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new section: 
‘‘SEC. 9512. OPPORTUNITY TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Opportunity Trust Fund’ (referred 
to in this section as the ‘Trust Fund’), consisting of such 
amounts as may be appropriated or credited to such fund 
as provided in this section or section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Trust Fund amounts equivalent to 
the net revenues received in the Treasury from the taxes 
imposed under chapter 56. 
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‘‘(c) EXPENDITURES.—Amounts in the Trust Fund 
shall be available, without further appropriation, only as 
follows: 
‘‘(1) 50 percent to the Attorney General to 
carry out section 3052(a) of part OO of the Omni-
bus Crime Control and Safe Streets Act of 1968. 
‘‘(2) 10 percent to the Attorney General to 
carry out section 3052(b) of part OO of the Omni-
bus Crime Control and Safe Streets Act of 1968. 
‘‘(3) 20 percent to the Administrator of the 
Small Business Administration to carry out section 
6(b)(1) of the Marijuana Opportunity Reinvestment 
and Expungement Act of 2021. 
‘‘(4) 20 percent to the Administrator of the 
Small Business Administration to carry out section 
6(b)(2) of the Marijuana Opportunity Reinvestment 
and Expungement Act of 2021.’’. 
(b) CANNABIS REVENUE AND REGULATION ACT.— 
Subtitle E of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new chapter: 
‘‘CHAPTER 56—CANNABIS PRODUCTS 
‘‘SUBCHAPTER A. TAX ON CANNABIS PRODUCTS 
‘‘SUBCHAPTER B. OCCUPATIONAL TAX 
‘‘SUBCHAPTER C. BOND AND PERMITS 
‘‘SUBCHAPTER D. OPERATIONS 
‘‘SUBCHAPTER E. PENALTIES 
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‘‘Subchapter A—Tax on Cannabis Products 
‘‘Sec. 5901. Imposition of tax. 
‘‘Sec. 5902. Definitions. 
‘‘Sec. 5903. Liability and method of payment. 
‘‘Sec. 5904. Exemption from tax; transfers in bond. 
‘‘Sec. 5905. Credit, refund, or drawback of tax. 
‘‘SEC. 5901. IMPOSITION OF TAX. 
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 
on any cannabis product produced in or imported into the 
United States a tax equal to— 
‘‘(1) for any such product removed during the 
first 5 calendar years ending after the date on which 
this chapter becomes effective, the applicable per-
centage of such product’s removal price, and 
‘‘(2) for any product removed during any cal-
endar year after the calendar years described in 
paragraph (1), the applicable equivalent amount. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a)(1), the applicable percentage shall be deter-
mined as follows: 
‘‘(1) For any cannabis product removed during 
the first 2 calendar years ending after the date on 
which this chapter becomes effective, 5 percent. 
‘‘(2) For any cannabis product removed during 
the calendar year after the last calendar year to 
which paragraph (1) applies, 6 percent. 
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‘‘(2) APPLICABLE RATES.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(A), the term ‘applicable rate per 
ounce’ means, with respect to any cannabis 
product removed during any calendar year, 8 
percent of the prevailing sales price of cannabis 
flowers sold in the United States during the 12- 
month period ending one calendar quarter be-
fore such calendar year, expressed on a per 
ounce basis, as determined by the Secretary. 
‘‘(B) THC-MEASURABLE CANNABIS PROD-
UCTS.—For purposes of paragraph (1)(B), the 
term ‘applicable rate per gram’ means, with re-
spect to any cannabis product removed during 
any calendar year, 8 percent of the prevailing 
sales price of tetrahydrocannabinol sold in the 
United States during the 12-month period end-
ing one calendar quarter before such calendar 
year, expressed on a per gram basis, as deter-
mined by the Secretary. 
‘‘(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 
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into any other substance, either in the process of original 
production or by any subsequent process. 
‘‘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 which contains (or consists 
of) cannabis. 
‘‘(B) EXCEPTIONS.—The term ‘cannabis 
product’ shall not include an FDA-approved ar-
ticle or industrial hemp. 
‘‘(C) FDA-APPROVED ARTICLE.—The term 
‘FDA-approved article’ means any article if the 
producer or importer thereof demonstrates to 
the satisfaction of the Secretary of Health and 
Human Services that such article is— 
‘‘(i) a drug— 
‘‘(I) that is approved under sec-
tion 505 of the Federal Food, Drug, 
and Cosmetic Act or licensed under 
section 351 of the Public Health Serv-
ice Act, or 
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‘‘(II) for which an investigational 
use exemption has been authorized 
under section 505(i) of the Federal 
Food, Drug, and Cosmetic Act or 
under section 351(a) of the Public 
Health Service Act, or 
‘‘(ii) a combination product (as de-
scribed in section 503(g) of the Federal 
Food, Drug, and Cosmetic Act), the con-
stituent parts of which were approved or 
cleared under section 505, 510(k), or 515 
of such Act. 
‘‘(D) INDUSTRIAL HEMP.—The term ‘in-
dustrial hemp’ means the plant Cannabis sativa 
L. and any part of such plant, whether growing 
or not, with a delta-9 tetrahydrocannabinol con-
centration of not more than 0.3 percent on a 
dry weight basis. 
‘‘(2) THC-MEASURABLE CANNABIS PRODUCT.— 
The term ‘THC-measurable cannabis product’ 
means any cannabis product— 
‘‘(A) with respect to which the Secretary 
has made a determination that the amount of 
tetrahydrocannabinol in such product can be 
measured with a high degree of accuracy, or 
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‘‘(B) which is not cannabis flower and the 
concentration of tetrahydrocannabinol in which 
is significantly higher than the average such 
concentration in cannabis flower. 
‘‘(3) CANNABIS.—The term ‘cannabis’ has the 
meaning given such term under section 102(16) of 
the Controlled Substances Act (21 U.S.C. 802(16)). 
‘‘(b) DEFINITIONS RELATED TO CANNABIS ENTER-
PRISES.—For purposes of this chapter— 
‘‘(1) CANNABIS ENTERPRISE.—The term ‘can-
nabis enterprise’ means a producer, importer, or ex-
port warehouse proprietor. 
‘‘(2) PRODUCER.— 
‘‘(A) IN GENERAL.—The term ‘producer’ 
means any person who plants, cultivates, har-
vests, grows, manufactures, produces, com-
pounds, converts, processes, prepares, or pack-
ages 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. 
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‘‘(3) IMPORTER.—The term ‘importer’ means 
any person who— 
‘‘(A) is in the United States and to whom 
non-tax-paid cannabis products, produced in a 
foreign country or a possession of the United 
States, are shipped or consigned, 
‘‘(B) removes cannabis products for sale or 
consumption in the United States from a cus-
toms bonded warehouse, or 
‘‘(C) smuggles or otherwise unlawfully 
brings any cannabis product into the United 
States. 
‘‘(4) EXPORT WAREHOUSE PROPRIETOR.— 
‘‘(A) IN
GENERAL.—The term ‘export 
warehouse proprietor’ means any person who 
operates an export warehouse. 
‘‘(B) EXPORT
WAREHOUSE.—The term 
‘export warehouse’ means a bonded internal 
revenue warehouse for the storage of cannabis 
products, upon which the internal revenue tax 
has not been paid— 
‘‘(i) for subsequent shipment to a for-
eign country or a possession of the United 
States, or 
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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 which is qualified under subchapter C to 
perform 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’ means— 
‘‘(A) the transfer of cannabis products 
from the premises of a producer (or the trans-
fer of such products from the bonded premises 
of a producer to a non-bonded 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 which occurs in con-
nection with the removal of such product, 
‘‘(B) in the case of any such sale which is 
described in section 5903(c), the price deter-
mined under such section, and 
‘‘(C) if there is no sale which occurs in 
connection with such removal, the price which 
would be determined under section 5903(c) if 
such product were sold at a price which cannot 
be determined. 
‘‘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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articles, and the transferor shall thereupon 
be relieved of their liability for such tax, 
and 
‘‘(ii) in the case of cannabis products 
which are released in bond from customs 
custody for transfer to the bonded prem-
ises of a producer, the transferee shall be-
come 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) RETURNED TO BOND.—All provisions 
of this chapter applicable to cannabis products 
in bond shall be applicable to such articles re-
turned to bond upon withdrawal from the mar-
ket or returned to bond after previous 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. 
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‘‘(B) APPLICATION TO TRANSFEREES.—In 
the case of any transfer to which subsection 
(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 
bonded 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 the filing of such additional 
bonds, and 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, insofar as applicable, shall apply to any 
tax imposed by section 5901. 
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‘‘(2) TIME FOR PAYMENT OF TAXES.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, in the case of taxes 
on cannabis products removed during any semi-
monthly period under bond for deferred pay-
ment of tax, the last day for payment of such 
taxes shall be the 14th day after the last day 
of such semimonthly period. 
‘‘(B) IMPORTED ARTICLES.—In the case of 
cannabis products which 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. 
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‘‘(iii) FOREIGN
TRADE
ZONES.—Ex-
cept as provided in clause (iv) and in regu-
lations prescribed by the Secretary, articles 
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 which 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 which 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 pe-
riod 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 
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subparagraph, the due date under this para-
graph would fall on a Saturday, Sunday, or a 
legal holiday (as defined in section 7503), such 
due date shall be the immediately preceding day 
which is not a Saturday, Sunday, or such a hol-
iday. 
‘‘(E) SPECIAL
RULE
FOR
UNLAWFULLY 
PRODUCED CANNABIS PRODUCTS.—In the case 
of any cannabis products produced in the 
United States at any place other than the 
premises of a producer that has filed the bond 
and obtained the permit required under this 
chapter, tax shall be due and payable imme-
diately upon production. 
‘‘(3) PAYMENT BY ELECTRONIC FUND TRANS-
FER.—Any person who in any 12-month period, end-
ing December 31, was liable for a gross amount 
equal to or exceeding $5,000,000 in taxes imposed 
on cannabis products by section 5901 (or section 
7652) shall pay such taxes during the succeeding 
calendar year by electronic fund transfer (as defined 
in section 5061(e)(2)) to a Federal Reserve Bank. 
Rules similar to the rules of section 5061(e)(3) shall 
apply to the $5,000,000 amount specified in the pre-
ceding sentence. 
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‘‘(c) DETERMINATION OF PRICE.— 
‘‘(1) CONSTRUCTIVE SALE PRICE.— 
‘‘(A) IN GENERAL.—If an article is sold di-
rectly to consumers, sold on consignment, or 
sold (otherwise than through an arm’s length 
transaction) at less than the fair market price, 
or if the price for which the article sold cannot 
be determined, the tax under section 5901(a) 
shall be computed on the price for which such 
articles are sold, in the ordinary course of 
trade, by producers thereof, as determined by 
the Secretary. 
‘‘(B) ARM’S LENGTH.— 
‘‘(i) IN
GENERAL.—For purposes of 
this section, a sale is considered to be 
made under circumstances otherwise than 
at arm’s length if— 
‘‘(I) the parties are members of 
the same controlled group, whether or 
not such control is actually exercised 
to influence the sale price, 
‘‘(II) the parties are members of 
a family, as defined in section 
267(c)(4), or 
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‘‘(III) the sale is made pursuant 
to special arrangements between a 
producer and a purchaser. 
‘‘(ii) CONTROLLED GROUPS.— 
‘‘(I) IN
GENERAL.—The term 
‘controlled group’ has the meaning 
given to such term by subsection (a) 
of section 1563, except that ‘more 
than 50 percent’ shall be substituted 
for ‘at least 80 percent’ each place it 
appears in such subsection. 
‘‘(II) 
CONTROLLED
GROUPS 
WHICH
INCLUDE
NONINCORPORATED 
PERSONS.—Under 
regulations 
pre-
scribed by the Secretary, principles 
similar to the principles of subclause 
(I) shall apply to a group of persons 
under common control where one or 
more of such persons is not a corpora-
tion. 
‘‘(2) CONTAINERS, PACKING
AND
TRANSPOR-
TATION CHARGES.—In determining, for the purposes 
of this chapter, the price for which an article is sold, 
there shall be included any charge for coverings and 
containers of whatever nature, and any charge inci-
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dent to placing the article in condition packed ready 
for shipment, but there shall be excluded the amount 
of tax imposed by this chapter, whether or not stat-
ed as a separate charge. A transportation, delivery, 
insurance, installation, or other charge (not required 
by the preceding sentence to be included) shall be 
excluded from the price only if the amount thereof 
is established to the satisfaction of the Secretary in 
accordance with regulations. 
‘‘(3) DETERMINATION OF APPLICABLE EQUIVA-
LENT
AMOUNTS.—Paragraphs (1) and (2) shall 
apply for purposes of section 5901(c) only to the ex-
tent that the Secretary determines appropriate. 
‘‘(d) PARTIAL PAYMENTS AND INSTALLMENT AC-
COUNTS.— 
‘‘(1) PARTIAL PAYMENTS.—In the case of— 
‘‘(A) a contract for the sale of an article 
wherein it is provided that the price shall be 
paid by installments and title to the article sold 
does not pass until a future date notwith-
standing partial payment by installments, 
‘‘(B) a conditional sale, or 
‘‘(C) a chattel mortgage arrangement 
wherein it is provided that the sales price shall 
be paid in installments, 
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there shall be paid upon each payment with respect 
to the article a percentage of such payment equal to 
the rate of tax in effect on the date such payment 
is due. 
‘‘(2) SALES OF INSTALLMENT ACCOUNTS.—If 
installment accounts, with respect to payments on 
which tax is being computed as provided in para-
graph (1), are sold or otherwise disposed of, then 
paragraph (1) shall not apply with respect to any 
subsequent payments on such accounts (other than 
subsequent payments on returned accounts with re-
spect to which credit or refund is allowable by rea-
son of section 6416(b)(5)), but instead— 
‘‘(A) there shall be paid an amount equal 
to the difference between— 
‘‘(i) the tax previously paid on the 
payments on such installment accounts, 
and 
‘‘(ii) the total tax which would be pay-
able if such installment accounts had not 
been sold or otherwise disposed of (com-
puted as provided in paragraph (1)), ex-
cept that 
‘‘(B) if any such sale is pursuant to the 
order of, or subject to the approval of, a court 
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of competent jurisdiction in a bankruptcy or in-
solvency proceeding, the amount computed 
under subparagraph (A) shall not exceed the 
sum of the amounts computed by multiplying— 
‘‘(i) the proportionate share of the 
amount for which such accounts are sold 
which is allocable to each unpaid install-
ment payment, by 
‘‘(ii) the rate of tax under this chap-
ter in effect on the date such unpaid in-
stallment payment is or was due. 
The sum of the amounts payable under this 
subsection in respect of the sale of any article 
shall not exceed the total tax. 
‘‘SEC. 5904. EXEMPTION FROM TAX; TRANSFERS IN BOND. 
‘‘(a) EXEMPTION FROM TAX.—Cannabis products on 
which the internal revenue tax has not been paid or deter-
mined may, subject to such regulations as the Secretary 
shall prescribe, be withdrawn from the bonded premises 
of any producer in approved containers free of tax and 
not for resale for use— 
‘‘(1) exclusively in scientific research by a lab-
oratory, 
‘‘(2) by a proprietor of a cannabis production 
facility in research, development, or testing (other 
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than consumer testing or other market analysis) of 
processes, systems, materials, or equipment, relating 
to cannabis or cannabis operations, under such limi-
tations and conditions as to quantities, use, and ac-
countability as the Secretary may by regulations re-
quire for the protection of the revenue, or 
‘‘(3) by the United States or any governmental 
agency thereof, any State, any political subdivision 
of a State, or the District of Columbia, for non-
consumption purposes. 
‘‘(b) CANNABIS PRODUCTS TRANSFERRED OR RE-
MOVED IN BOND FROM DOMESTIC FACTORIES AND EX-
PORT WAREHOUSES.— 
‘‘(1) IN GENERAL.—Subject to such regulations 
and under such bonds as the Secretary shall pre-
scribe, a producer or export warehouse proprietor 
may transfer cannabis products, without payment of 
tax, to the bonded premises of another producer or 
export warehouse proprietor, or remove such articles, 
without payment of tax, for shipment to a foreign 
country or a possession of the United States, or for 
consumption beyond the jurisdiction of the internal 
revenue laws of the United States. 
‘‘(2) LABELING.—Cannabis products may not 
be transferred or removed under this subsection un-
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less such products bear such marks, labels, or no-
tices as the Secretary shall by regulations prescribe. 
‘‘(c) CANNABIS PRODUCTS RELEASED
IN BOND 
FROM CUSTOMS CUSTODY.—Cannabis products imported 
or brought into the United States may be released from 
customs custody, without payment of tax, for delivery to 
a producer or export warehouse proprietor if such articles 
are not put up in packages, in accordance with such regu-
lations and under such bond as the Secretary shall pre-
scribe. 
‘‘(d) CANNABIS PRODUCTS EXPORTED
AND RE-
TURNED.—Cannabis products classifiable under item 
9801.00.10 of the Harmonized Tariff Schedule of the 
United States (relating to duty on certain articles pre-
viously exported and returned), as in effect on the date 
of the enactment of the Marijuana Opportunity Reinvest-
ment and Expungement Act of 2021, may be released 
from customs custody, without payment of that part of 
the duty attributable to the internal revenue tax for deliv-
ery to the original producer of such cannabis products or 
to the export warehouse proprietor authorized by such pro-
ducer to receive such products, in accordance with such 
regulations and under such bond as the Secretary shall 
prescribe. Upon such release such products shall be sub-
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ject to this chapter as if they had not been exported or 
otherwise removed from internal revenue bond. 
‘‘SEC. 5905. CREDIT, REFUND, OR DRAWBACK OF TAX. 
‘‘(a) CREDIT OR REFUND.— 
‘‘(1) IN GENERAL.—Credit or refund of any tax 
imposed by this chapter or section 7652 shall be al-
lowed or made (without interest) to the cannabis en-
terprise on proof satisfactory to the Secretary that 
the claimant cannabis enterprise has paid the tax 
on— 
‘‘(A) cannabis products withdrawn from 
the market by the claimant, or 
‘‘(B) such products lost (otherwise than by 
theft) or destroyed, by fire, casualty, or act of 
God, while in the possession or ownership of the 
claimant. 
‘‘(2) CANNABIS
PRODUCTS
LOST
OR
DE-
STROYED IN BOND.— 
‘‘(A) EXTENT OF LOSS ALLOWANCE.—No 
tax shall be collected in respect of cannabis 
products lost or destroyed while in bond, except 
that such tax shall be collected— 
‘‘(i) in the case of loss by theft, unless 
the Secretary finds that the theft occurred 
without connivance, collusion, fraud, or 
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negligence on the part of the proprietor of 
the cannabis production facility, owner, 
consignor, consignee, bailee, or carrier, or 
their employees or agents, 
‘‘(ii) in the case of voluntary destruc-
tion, unless such destruction is carried out 
as provided in paragraph (3), and 
‘‘(iii) in the case of an unexplained 
shortage of cannabis products. 
‘‘(B) PROOF
OF
LOSS.—In any case in 
which cannabis products are lost or destroyed, 
whether by theft or otherwise, the Secretary 
may require the proprietor of a cannabis pro-
duction facility or other person liable for the 
tax to file a claim for relief from the tax and 
submit proof as to the cause of such loss. In 
every case where it appears that the loss was by 
theft, the burden shall be upon the proprietor 
of the cannabis production facility or other per-
son responsible for the tax under section 5901 
to establish to the satisfaction of the Secretary 
that such loss did not occur as the result of 
connivance, collusion, fraud, or negligence on 
the part of the proprietor of the cannabis pro-
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duction facility, owner, consignor, consignee, 
bailee, or carrier, or their employees or agents. 
‘‘(C) REFUND OF TAX.—In any case where 
the tax would not be collectible by virtue of sub-
paragraph (A), but such tax has been paid, the 
Secretary shall refund such tax. 
‘‘(D) LIMITATIONS.—Except as provided in 
subparagraph (E), no tax shall be abated, re-
mitted, credited, or refunded under this para-
graph where the loss occurred after the tax was 
determined. The abatement, remission, credit, 
or refund of taxes provided for by subpara-
graphs (A) and (C) in the case of loss of can-
nabis products by theft shall only be allowed to 
the extent that the claimant is not indemnified 
against or recompensed in respect of the tax for 
such loss. 
‘‘(E) APPLICABILITY.—The provisions of 
this paragraph shall extend to and apply in re-
spect of cannabis products lost after the tax 
was determined and before completion of the 
physical removal of the cannabis products from 
the bonded premises. 
‘‘(3) VOLUNTARY DESTRUCTION.—The propri-
etor of a cannabis production facility or other per-
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sons liable for the tax imposed by this chapter or by 
section 7652 with respect to any cannabis product in 
bond may voluntarily destroy such products, but 
only if such destruction is under such supervision 
and under such regulations as the Secretary may 
prescribe. 
‘‘(4) LIMITATION.—Any claim for credit or re-
fund of tax under this subsection shall be filed with-
in 6 months after the date of the withdrawal from 
the market, loss, or destruction of the products to 
which the claim relates, and shall be in such form 
and contain such information as the Secretary shall 
by regulations prescribe. 
‘‘(b) DRAWBACK OF TAX.—There shall be an allow-
ance of drawback of tax paid on cannabis products, when 
shipped from the United States, in accordance with such 
regulations and upon the filing of such bond as the Sec-
retary shall prescribe. 
‘‘Subchapter B—Occupational Tax 
‘‘Sec. 5911. Imposition and rate of tax. 
‘‘Sec. 5912. Payment of tax. 
‘‘Sec. 5913. Provisions relating to liability for occupational taxes. 
‘‘Sec. 5914. Application to State laws. 
‘‘SEC. 5911. IMPOSITION AND RATE OF TAX. 
‘‘(a) IN GENERAL.—Any person engaged in business 
as a producer or an export warehouse proprietor shall pay 
a tax of $1,000 per year (referred to in this subchapter 
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as an ‘occupational tax’) in respect of each premises at 
which such business is carried on. 
‘‘(b) PENALTY FOR FAILURE TO REGISTER.—Any 
person engaged in business as a producer or an export 
warehouse proprietor who willfully fails to pay the occupa-
tion tax shall be fined not more than $5,000, or impris-
oned not more than 2 years, or both, for each such offense. 
‘‘SEC. 5912. PAYMENT OF TAX. 
‘‘(a) CONDITION
PRECEDENT
TO
CARRYING
ON 
BUSINESS.—No person shall be engaged in or carry on 
any trade or business subject to the occupational tax until 
such person has paid such tax. 
‘‘(b) COMPUTATION.— 
‘‘(1) IN GENERAL.—The occupational tax shall 
be imposed— 
‘‘(A) as of on the first day of July in each 
year, or 
‘‘(B) on commencing any trade or business 
on which such tax is imposed. 
‘‘(2) PERIOD.—In the case of a tax imposed 
under subparagraph (A) of paragraph (1), the occu-
pational tax shall be reckoned for 1 year, and in the 
case of subparagraph (B) of such paragraph, it shall 
be reckoned proportionately, from the first day of 
the month in which the liability to such tax com-
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menced, to and including the 30th day of June fol-
lowing. 
‘‘(c) METHOD OF PAYMENT.— 
‘‘(1) PAYMENT BY RETURN.—The occupational 
tax shall be paid on the basis of a return under such 
regulations as the Secretary shall prescribe. 
‘‘(2) STAMP
DENOTING
PAYMENT
OF
TAX.— 
After receiving a properly executed return and re-
mittance of any occupational tax, the Secretary shall 
issue to the taxpayer an appropriate stamp as a re-
ceipt denoting payment of the tax. This paragraph 
shall not apply in the case of a return covering li-
ability for a past period. 
‘‘SEC. 5913. PROVISIONS RELATING TO LIABILITY FOR OC-
CUPATIONAL TAXES. 
‘‘(a) PARTNERS.—Any number of persons doing busi-
ness in partnership at any one place shall be required to 
pay a single occupational tax. 
‘‘(b) DIFFERENT BUSINESSES OF SAME OWNERSHIP 
AND LOCATION.—Whenever more than one of the pursuits 
or occupations described in this subchapter are carried on 
in the same place by the same person at the same time, 
except as otherwise provided in this subchapter, the occu-
pational tax shall be paid for each according to the rates 
severally prescribed. 
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‘‘(c) BUSINESSES IN MORE THAN ONE LOCATION.— 
‘‘(1) LIABILITY FOR TAX.—The payment of the 
occupational tax shall not exempt from an additional 
occupational tax the person carrying on a trade or 
business in any other place than that stated in the 
records of the Internal Revenue Service. 
‘‘(2) STORAGE.—Nothing contained in para-
graph (1) shall require imposition of an occupational 
tax for the storage of cannabis products at a loca-
tion other than the place where such products are 
sold or offered for sale. 
‘‘(3) PLACE.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘place’ means the entire office, 
plant or area of the business in any one loca-
tion under the same proprietorship. 
‘‘(B) DIVISIONS.—For purposes of this 
paragraph, any passageways, streets, highways, 
rail crossings, waterways, or partitions dividing 
the premises shall not be deemed sufficient sep-
aration to require an additional occupational 
tax, if the various divisions are otherwise con-
tiguous. 
‘‘(d) DEATH OR CHANGE OF LOCATION.— 
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‘‘(1) IN GENERAL.—In addition to the person 
who has paid the occupational tax for the carrying 
on of any business at any place, any person de-
scribed in paragraph (2) may secure the right to 
carry on, without incurring any additional occupa-
tional tax, the same business at the same place for 
the remainder of the taxable period for which the oc-
cupational tax was paid. 
‘‘(2) ELIGIBLE
PERSONS.—The persons de-
scribed in this paragraph are the following: 
‘‘(A) The surviving spouse or child, or ex-
ecutor or administrator or other legal represent-
ative, of a deceased taxpayer. 
‘‘(B) A husband or wife succeeding to the 
business of his or her living spouse. 
‘‘(C) A receiver or trustee in bankruptcy, 
or an assignee for benefit of creditors. 
‘‘(D) The partner or partners remaining 
after death or withdrawal of a member of a 
partnership. 
‘‘(3) CHANGE OF LOCATION.—When any person 
moves to any place other than the place for which 
occupational tax was paid for the carrying on of any 
business, such person may secure the right to carry 
on, without incurring additional occupational tax, 
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the same business at the new location for the re-
mainder of the taxable period for which the occupa-
tional tax was paid. To secure the right to carry on 
the business without incurring additional occupa-
tional tax, the successor, or the person relocating 
their business, must register the succession or relo-
cation with the Secretary in accordance with regula-
tions prescribed by the Secretary. 
‘‘(e) FEDERAL
AGENCIES
OR
INSTRUMENTAL-
ITIES.—Any tax imposed by this subchapter shall apply 
to any agency or instrumentality of the United States un-
less such agency or instrumentality is granted by statute 
a specific exemption from such tax. 
‘‘SEC. 5914. APPLICATION TO STATE LAWS. 
‘‘The payment of any tax imposed by this subchapter 
for carrying on any trade or business shall not be held 
to— 
‘‘(1) exempt any person from any penalty or 
punishment provided by the laws of any State for 
carrying on such trade or business within such 
State, or in any manner to authorize the commence-
ment or continuance of such trade or business con-
trary to the laws of such State or in places prohib-
ited by municipal law, or 
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‘‘(2) prohibit any State from placing a duty or 
tax on the same trade or business, for State or other 
purposes. 
‘‘Subchapter C—Bond and Permits 
‘‘Sec. 5921. Establishment and bond. 
‘‘Sec. 5922. Application for permit. 
‘‘Sec. 5923. Permit. 
‘‘SEC. 5921. ESTABLISHMENT AND BOND. 
‘‘(a) PROHIBITION
ON PRODUCTION OUTSIDE
OF 
BONDED CANNABIS PRODUCTION FACILITY.— 
‘‘(1) IN
GENERAL.—Except as authorized by 
the Secretary or on the bonded premises of a can-
nabis production facility duly authorized to produce 
cannabis products according to law, no cannabis 
product may planted, cultivated, harvested, grown, 
manufactured, produced, compounded, converted, 
processed, prepared, or packaged in any building or 
on any premises. 
‘‘(2) AUTHORIZED PRODUCERS ONLY.—No per-
son other than a producer which has filed the bond 
required under subsection (b) and received a permit 
described in section 5923 may produce any cannabis 
product. 
‘‘(3) PERSONAL
USE
EXCEPTION.—This sub-
section shall not apply with respect the activities of 
an individual who is not treated as a producer by 
reason of section 5902(b)(2)(B). 
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‘‘(b) BOND.— 
‘‘(1) WHEN REQUIRED.—Every person, before 
commencing business as a producer or an export 
warehouse proprietor, shall file such bond, condi-
tioned upon compliance with this chapter and regu-
lations issued thereunder, in such form, amount, and 
manner as the Secretary shall by regulation pre-
scribe. A new or additional bond may be required 
whenever the Secretary considers such action nec-
essary for the protection of the revenue. 
‘‘(2) APPROVAL OR DISAPPROVAL.—No person 
shall engage in such business until he receives notice 
of approval of such bond. A bond may be dis-
approved, upon notice to the principal on the bond, 
if the Secretary determines that the bond is not ade-
quate to protect the revenue. 
‘‘(3) CANCELLATION.—Any bond filed here-
under may be canceled, upon notice to the principal 
on the bond, whenever the Secretary determines that 
the bond no longer adequately protects the revenue. 
‘‘SEC. 5922. APPLICATION FOR PERMIT. 
‘‘(a) IN
GENERAL.—Every person, before com-
mencing business as a cannabis enterprise, and at such 
other time as the Secretary shall by regulation prescribe, 
shall make application for the permit provided for in sec-
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tion 5923. The application shall be in such form as the 
Secretary shall prescribe and shall set forth, truthfully and 
accurately, the information called for on the form. Such 
application may be rejected and the permit denied if the 
Secretary, after notice and opportunity for hearing, finds 
that— 
‘‘(1) the premises on which it is proposed to 
conduct the cannabis enterprise are not adequate to 
protect the revenue, or 
‘‘(2) such person (including, in the case of a 
corporation, any officer, director, or principal stock-
holder and, in the case of a partnership, a partner) 
has failed to disclose any material information re-
quired or made any material false statement in the 
application therefor. 
‘‘SEC. 5923. PERMIT. 
‘‘(a) ISSUANCE.—A person shall not engage in busi-
ness as a cannabis enterprise without a permit to engage 
in such business. Such permit, conditioned upon compli-
ance with this chapter and regulations issued thereunder, 
shall be issued in such form and in such manner as the 
Secretary shall by regulation prescribe. A new permit may 
be required at such other time as the Secretary shall by 
regulation prescribe. 
‘‘(b) SUSPENSION OR REVOCATION.— 
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‘‘(1) SHOW CAUSE HEARING.—If the Secretary 
has reason to believe that any person holding a per-
mit— 
‘‘(A) has not in good faith complied with 
this chapter, or with any other provision of this 
title involving intent to defraud, 
‘‘(B) has violated the conditions of such 
permit, 
‘‘(C) has failed to disclose any material in-
formation required or made any material false 
statement in the application for such permit, or 
‘‘(D) has failed to maintain their premises 
in such manner as to protect the revenue, 
the Secretary shall issue an order, stating the facts 
charged, citing such person to show cause why their 
permit should not be suspended or revoked. 
‘‘(2) ACTION FOLLOWING HEARING.—If, after 
hearing, the Secretary finds that such person has 
not shown cause why their permit should not be sus-
pended or revoked, such permit shall be suspended 
for such period as the Secretary deems proper or 
shall be revoked. 
‘‘(c) INFORMATION REPORTING.—The Secretary may 
require— 
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‘‘(1) information reporting by any person issued 
a permit under this section, and 
‘‘(2) information reporting by such other per-
sons as the Secretary deems necessary to carry out 
this chapter. 
‘‘(d) INSPECTION
OR DISCLOSURE
OF INFORMA-
TION.—For rules relating to inspection and disclosure of 
returns and return information, see section 6103(o). 
‘‘Subchapter D—Operations 
‘‘Sec. 5931. Inventories, reports, and records. 
‘‘Sec. 5932. Packaging and labeling. 
‘‘Sec. 5933. Purchase, receipt, possession, or sale of cannabis products after re-
moval. 
‘‘Sec. 5934. Restrictions relating to marks, labels, notices, and packages. 
‘‘Sec. 5935. Restriction on importation of previously exported cannabis prod-
ucts. 
‘‘SEC. 5931. INVENTORIES, REPORTS, AND RECORDS. 
‘‘Every cannabis enterprise shall— 
‘‘(1) make a true and accurate inventory at the 
time of commencing business, at the time of con-
cluding business, and at such other times, in such 
manner and form, and to include such items, as the 
Secretary shall by regulation prescribe, with such in-
ventories to be subject to verification by any internal 
revenue officer, 
‘‘(2) make reports containing such information, 
in such form, at such times, and for such periods as 
the Secretary shall by regulation prescribe, and 
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‘‘(3) keep such records in such manner as the 
Secretary shall by regulation prescribe, with such 
records to be available for inspection by any internal 
revenue officer during business hours. 
‘‘SEC. 5932. PACKAGING AND LABELING. 
‘‘(a) PACKAGES.—All cannabis products shall, before 
removal, be put up in such packages as the Secretary shall 
by regulation prescribe. 
‘‘(b) MARKS, LABELS, AND NOTICES.—Every pack-
age of cannabis products shall, before removal, bear the 
marks, labels, and notices if any, that the Secretary by 
regulation prescribes. 
‘‘(c) LOTTERY FEATURES.—No certificate, coupon, 
or other device purporting to be or to represent a ticket, 
chance, share, or an interest in, or dependent on, the event 
of a lottery shall be contained in, attached to, or stamped, 
marked, written, or printed on any package of cannabis 
products. 
‘‘(d) INDECENT OR IMMORAL MATERIAL PROHIB-
ITED.—No indecent or immoral picture, print, or rep-
resentation shall be contained in, attached to, or stamped, 
marked, written, or printed on any package of cannabis 
products. 
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‘‘(e) EXCEPTIONS.—Subject to regulations prescribed 
by the Secretary, cannabis products may be exempted 
from subsections (a) and (b) if such products are— 
‘‘(1) for experimental purposes, or 
‘‘(2) transferred to the bonded premises of an-
other producer or export warehouse proprietor or re-
leased in bond from customs custody for delivery to 
a producer. 
‘‘SEC. 5933. PURCHASE, RECEIPT, POSSESSION, OR SALE OF 
CANNABIS PRODUCTS AFTER REMOVAL. 
‘‘(a) RESTRICTION.—No person shall— 
‘‘(1) with intent to defraud the United States, 
purchase, receive, possess, offer for sale, or sell or 
otherwise dispose of, after removal, any cannabis 
products— 
‘‘(A) upon which the tax has not been paid 
or determined in the manner and at the time 
prescribed by this chapter or regulations there-
under, or 
‘‘(B) which, after removal without payment 
of tax pursuant to section 5904(a), have been 
diverted from the applicable purpose or use 
specified in that section, 
‘‘(2) with intent to defraud the United States, 
purchase, receive, possess, offer for sale, or sell or 
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otherwise dispose of, after removal, any cannabis 
products which are not put up in packages as re-
quired under section 5932 or which are put up in 
packages not bearing the marks, labels, and notices, 
as required under such section, or 
‘‘(3) otherwise than with intent to defraud the 
United States, purchase, receive, possess, offer for 
sale, or sell or otherwise dispose of, after removal, 
any cannabis products which are not put up in pack-
ages as required under section 5932 or which are 
put up in packages not bearing the marks, labels, 
and notices, as required under such section. 
‘‘(b) EXCEPTION.—Paragraph (3) of subsection (a) 
shall not prevent the sale or delivery of cannabis products 
directly to consumers from proper packages, nor apply to 
such articles when so sold or delivered. 
‘‘(c) LIABILITY TO TAX.—Any person who possesses 
cannabis products in violation of paragraph (1) or (2) of 
subsection (a) shall be liable for a tax equal to the tax 
on such articles. 
‘‘SEC. 5934. RESTRICTIONS RELATING TO MARKS, LABELS, 
NOTICES, AND PACKAGES. 
‘‘No person shall, with intent to defraud the United 
States, destroy, obliterate, or detach any mark, label, or 
notice prescribed or authorized, by this chapter or regula-
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tions thereunder, to appear on, or be affixed to, any pack-
age of cannabis products before such package is emptied. 
‘‘SEC. 5935. RESTRICTION ON IMPORTATION OF PRE-
VIOUSLY EXPORTED CANNABIS PRODUCTS. 
‘‘(a) EXPORT LABELED CANNABIS PRODUCTS.— 
‘‘(1) IN
GENERAL.—Cannabis products pro-
duced in the United States and labeled for expor-
tation under this chapter— 
‘‘(A) may be transferred to or removed 
from the premises of a producer or an export 
warehouse proprietor only if such articles are 
being transferred or removed without tax in ac-
cordance with section 5904, 
‘‘(B) may be imported or brought into the 
United States, after their exportation, only if 
such articles either are eligible to be released 
from customs custody with the partial duty ex-
emption provided in section 5904(d) or are re-
turned to the original producer of such article 
as provided in section 5904(c), and 
‘‘(C) may not be sold or held for sale for 
domestic consumption in the United States un-
less such articles are removed from their export 
packaging and repackaged by the original pro-
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ducer into new packaging that does not contain 
an export label. 
‘‘(2) ALTERATIONS BY PERSONS OTHER THAN 
ORIGINAL PRODUCER.—This section shall apply to 
articles labeled for export even if the packaging or 
the appearance of such packaging to the consumer 
of such articles has been modified or altered by a 
person other than the original producer so as to re-
move or conceal or attempt to remove or conceal (in-
cluding by the placement of a sticker over) any ex-
port label. 
‘‘(3) EXPORTS INCLUDE SHIPMENTS TO PUER-
TO
RICO.—For purposes of this section, section 
5904(d), section 5941, and such other provisions as 
the Secretary may specify by regulations, references 
to exportation shall be treated as including a ref-
erence to shipment to the Commonwealth of Puerto 
Rico. 
‘‘(b) EXPORT LABEL.—For purposes of this section, 
an article is labeled for export or contains an export label 
if it bears the mark, label, or notice required under section 
5904(b). 
‘‘Subchapter E—Penalties 
‘‘Sec. 5941. Civil penalties. 
‘‘Sec. 5942. Criminal penalties. 
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‘‘SEC. 5941. CIVIL PENALTIES. 
‘‘(a) OMITTING
THINGS
REQUIRED
OR
DOING 
THINGS FORBIDDEN.—Whoever willfully omits, neglects, 
or refuses to comply with any duty imposed upon them 
by this chapter, or to do, or cause to be done, any of the 
things required by this chapter, or does anything prohib-
ited by this chapter, shall in addition to any other penalty 
provided in this title, be liable to a penalty of $10,000, 
to be recovered, with costs of suit, in a civil action, except 
where a penalty under subsection (b) or (c) or under sec-
tion 6651 or 6653 or part II of subchapter A of chapter 
68 may be collected from such person by assessment. 
‘‘(b) FAILURE TO PAY TAX.—Whoever fails to pay 
any tax imposed by this chapter at the time prescribed 
by law or regulations, shall, in addition to any other pen-
alty provided in this title, be liable to a penalty of 10 per-
cent of the tax due but unpaid. 
‘‘(c) SALE OF CANNABIS OR CANNABIS PRODUCTS 
FOR EXPORT.— 
‘‘(1) Every person who sells, relands, or receives 
within the jurisdiction of the United States any can-
nabis products which have been labeled or shipped 
for exportation under this chapter, 
‘‘(2) every person who sells or receives such re-
landed cannabis products, and 
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‘‘(3) every person who aids or abets in such 
selling, relanding, or receiving, 
shall, in addition to the tax and any other penalty provided 
in this title, be liable for a penalty equal to the greater 
of $10,000 or 10 times the amount of the tax imposed 
by this chapter. All cannabis products relanded within the 
jurisdiction of the United States shall be forfeited to the 
United States and destroyed. All vessels, vehicles, and air-
craft used in such relanding or in removing such cannabis 
products from the place where relanded, shall be forfeited 
to the United States. 
‘‘(d) APPLICABILITY OF SECTION 6665.—The pen-
alties imposed by subsections (b) and (c) shall be assessed, 
collected, and paid in the same manner as taxes, as pro-
vided in section 6665(a). 
‘‘(e) CROSS REFERENCES.—For penalty for failure to 
make deposits or for overstatement of deposits, see section 
6656. 
‘‘SEC. 5942. CRIMINAL PENALTIES. 
‘‘(a) FRAUDULENT OFFENSES.—Whoever, with in-
tent to defraud the United States— 
‘‘(1) engages in business as a cannabis enter-
prise without filing the application and obtaining the 
permit where required by this chapter or regulations 
thereunder, 
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‘‘(2) fails to keep or make any record, return, 
report, or inventory, or keeps or makes any false or 
fraudulent record, return, report, or inventory, re-
quired by this chapter or regulations thereunder, 
‘‘(3) refuses to pay any tax imposed by this 
chapter, or attempts in any manner to evade or de-
feat the tax or the payment thereof, 
‘‘(4) sells or otherwise transfers, contrary to 
this chapter or regulations thereunder, any cannabis 
products subject to tax under this chapter, or 
‘‘(5) purchases, receives, or possesses, with in-
tent to redistribute or resell, any cannabis product— 
‘‘(A) upon which the tax has not been paid 
or determined in the manner and at the time 
prescribed by this chapter or regulations there-
under, or 
‘‘(B) which, without payment of tax pursu-
ant to section 5904, have been diverted from 
the applicable purpose or use specified in that 
section, 
shall, for each such offense, be fined not more than 
$10,000, or imprisoned not more than 5 years, or both. 
‘‘(b) LIABILITY TO TAX.—Any person who possesses 
cannabis products in violation of subsection (a) shall be 
liable for a tax equal to the tax on such articles.’’. 
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(c) STUDY.—Not later than 2 years after the date 
of the enactment of this Act, and every 5 years thereafter, 
the Secretary of the Treasury, or the Secretary’s delegate, 
shall— 
(1) conduct a study concerning the characteris-
tics of the cannabis industry, including the number 
of persons operating cannabis enterprises at each 
level of such industry, the volume of sales, the 
amount of tax collected each year, and the areas of 
evasion, and 
(2) submit to Congress recommendations to im-
prove the regulation of the industry and the admin-
istration of the related tax. 
(d) ANNUAL REPORTS REGARDING DETERMINATION 
OF APPLICABLE RATES.—Not later than 6 months before 
the beginning of each calendar year to which section 
5901(a)(2) of the Internal Revenue Code of 1986 (as 
added by this section) applies, the Secretary of the Treas-
ury, or the Secretary’s delegate, shall make publicly avail-
able a detailed description of the methodology which the 
Secretary anticipates using to determine the applicable 
rate per ounce and the applicable rate per gram which 
will apply for such calendar year under section 5901(c)(2) 
of such Code. 
(e) CONFORMING AMENDMENTS.— 
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