use, such as those regulated under title III of 
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 210 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 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 
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(A), the Secretary shall issue labeling require-
ments in accord with section 7 of this Act. 
‘‘(6) NO DRUG PRECLUSION.—Notwithstanding 
any other law, section 301(ll) of the Federal Food, 
Drug, and Cosmetic Act, the ‘drug preclusion’ rule, 
shall not apply to ‘marihuana’, as defined in section 
102(16) of the Controlled Substances Act. Notwith-
standing any other Federal law or provision of the 
Federal Food, Drug, and Cosmetic Act, the Food 
and Drug Administration shall treat cannabis with-
out respect to the doctrine of drug preclusion. Noth-
ing in this provision is meant to diminish or other-
wise affect the ability of the Food and Drug Admin-
istration to regulate drug products (as defined in 
section 201(g) of the Federal Food, Drug, and Cos-
metic Act), including those containing ‘marihuana’, 
(as defined in section 102(16) of the Controlled Sub-
stances Act) that are intended and marketed for use 
as a ‘drug’ rather than a ‘designated State medical 
cannabis product’. 
‘‘(7) 
RULEMAKING
AUTHORITY
AND 
TIMELINE.—The Commissioner of the Food and 
Drug Administration, or their designee, shall imple-
ment the Act and enter formal rulemaking, con-
sistent with the Administrative Procedure Act (5 
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U.S.C. 500 et seq.), according to the following 
schedule: 
‘‘(A) Not later than 30 days after the date 
of enactment of this Act, publish in the Federal 
Register a Notice of Inquiry and Notice of Pro-
posed Rulemaking for implementation of the 
Act, requesting public comment. 
‘‘(B) Not later than 60 days after the date 
of enactment of this Act— 
‘‘(i) issue an interim final rule for im-
plementation and labeling regulations for 
certification of designated State products, 
and dietary supplements, food additives, 
cosmetics, and topicals containing can-
nabis; and 
‘‘(ii) publish a draft form of the Re-
quest for Certification form for designated 
State medical products. 
‘‘(C) Not later than 150 days after the 
date of enactment of this Act, issue a final rule 
for implementation and labeling regulations for 
certification of designated State products, and 
dietary supplements, food additives, cosmetics, 
and topicals containing cannabis. The Commis-
sioner or their designee may begin receiving re-
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quests for Certification of designated State 
medical cannabis products, and applications, 
notifications, and the like, for dietary supple-
ments, food additives, cosmetics, and topicals 
containing cannabis. 
‘‘(D) Not later than 180 days after the 
date of enactment of this Act, the Commis-
sioner or their designee shall begin receiving 
Requests for Certification of designated State 
medical cannabis products, and applications, 
notifications, and the like, for dietary supple-
ments, food additives, cosmetics, and topicals 
containing cannabis. 
‘‘(E) The major rule effective delay period 
of 60 days shall apply to the Final Rule de-
scribed in subparagraph (C), such that the 
Final Rule described in subparagraph (C) is ef-
fective 210 days after the date of enactment of 
this Act. 
‘‘SEC. 360ggg–2. CANNABIS-INFUSED FOODS, BEVERAGES, 
AND SUPPLEMENTS. 
‘‘(a) NO
SUPPLEMENT/ADDITIVE
PRECLUSION.— 
Notwithstanding any other law, section 201(s)(6) of the 
Federal Food, Drug, and Cosmetic Act shall not apply to 
‘marihuana’, as defined in section 102(16) of the Con-
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trolled Substances Act, nor to ‘industrial hemp’, as de-
fined in section 297A of the Agricultural Marketing Act 
of 1946 (7 U.S.C. 1639o). 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 
section 102(16) of the Controlled Substances Act, and ‘in-
dustrial hemp’, as defined in section 297A of the Agricul-
tural Marketing Act of 1946 (7 U.S.C. 1639o), shall be 
deemed to have been marketed in the United States as 
a dietary ingredient before October 15, 1994 for the pur-
poses of subsections (a) and (d) of section 413 of the Fed-
eral Food, Drug, and Cosmetic Act. 
‘‘(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 intended con-
ditions of use of whole-plant cannabis extracts and 
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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 section 102(16) of the Con-
trolled Substances Act, or ‘industrial hemp’, as defined in 
section 297A of the Agricultural Marketing Act of 1946 
(7 U.S.C. 1639o), shall be deemed to be generally recog-
nized as safe through experience based on common use 
in food prior to January 1, 1958, for the purposes of sec-
tion 201(s) of the Federal Food, Drug, and Cosmetic Act 
and 21 CFR 170.30(a). Cannabis-infused foods and bev-
erages, unless a designated State medical cannabis prod-
uct, shall be considered 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-
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ard serving size and further clarifying conditions of 
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 section 201(s)(6) 
of the Federal Food, Drug, and Cosmetic Act, and ‘indus-
trial hemp’, as defined in section 297A of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1639o), alone in cos-
metic products shall not cause a cosmetic to be adulterated 
within the meaning of subsections (a) through (e) of sec-
tion 601 of the Federal Food, Drug, and Cosmetic Act 
provided that it is properly labeled and branded within the 
meaning of chapter 6 of title 21, United States Code, gen-
erally. 
‘‘(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. 
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‘‘(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 
‘marihuana’, as defined in section 102(16) of the Con-
trolled Substances Act, and ‘industrial hemp’, as defined 
in section 297A of the Agricultural Marketing Act of 1946 
(7 U.S.C. 1639o), including any extract thereof, where the 
cannabis component actually renders it a poisonous or del-
eterious substance, injurious 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 con-
sidered adulterated within the meaning of section 601 of 
the Federal Food, Drug, and Cosmetic Act and/or mis-
branded under section 106(4) of the Federal Food, Drug, 
and Cosmetic Act. 
‘‘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. 
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‘‘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-
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.’’. 
SEC. 302. CERTAIN DEPARTMENT OF HEALTH AND HUMAN 
SERVICES AND FOOD AND DRUG ADMINIS-
TRATION REPORTING REQUIREMENTS. 
(a) IN GENERAL.—Not later than one calendar year 
after the date of the enactment of this Act, and annually 
thereafter for the following five calendar years, the Sec-
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retary of Health and Human Services shall submit to the 
appropriate congressional committees, reports on the fol-
lowing: 
(1) SECTION 301 DESIGNATED STATE MEDICAL 
CANNABIS PRODUCTS REPORT.—A report detailing— 
(A) administrative actions taken pursuant 
to section 301 of this Act (and the amendments 
made by such section) to ensure certification of 
designated State medical cannabis products, in-
cluding timelines and reasons for any delays 
past statutory deadlines; 
(B) the number, nature, and kind of des-
ignated State medical cannabis products grant-
ed or denied certification in the previous year; 
(C) any variances or lingering potential 
conflicts with State laws regarding medical can-
nabis products and section 301 of this Act (and 
the amendments made by such section), and 
any plans for resolving these variances; and 
(D) the impact of section 301 of this Act 
(and the amendments made by such section) 
with respect to patient access to designated 
State medical cannabis products. 
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(2) CANNABIDIOL (CBD) AND OTHER HEMP-DE-
RIVED
CANNABINOIDS
MARKET
AND
SAFETY
RE-
PORT.—A report detailing— 
(A) 
what 
the 
current 
market 
for 
cannabidiol (hereainfter referred to as ‘‘CBD’’) 
and other hemp-derived cannabinoid products 
looks like, including the types and forms of 
products available, manufacturing practices 
within the industry, market supply chain, how 
products are marketed and sold, the types of 
cannabinoids used in products, the marketed ef-
fects 
of 
CBD 
and 
other 
hemp-derived 
cannabinoid products, and the range of CBD 
and other hemp derived cannabinoid doses cur-
rently found in the market; 
(B) what State-based regulations have 
been created to CBD and other hemp derived 
cannabinoids and what is their interaction with 
Agricultural Marketing Act of 1946 in general, 
including Public Law 115–334, the Agriculture 
Improvement Act of 2018 (‘‘the 2018 Farm 
Bill’’); 
(C) how the lack of national standards for 
CBD and other hemp derived cannabinoid prod-
ucts affects the market; and 
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(D) what is currently known about the 
safety and risk-benefit profile of CBD and 
other hemp derived cannabinoids, including 
what safety and toxicity data are available to 
support this knowledge and any relevant infor-
mation about safety with regard to specific pop-
ulations, such as children and pregnant individ-
uals 
(3) MEDICAL
MARIJUANA
AND
CANNABIDIOL 
RESEARCH EXPANSION ACT REPORT.—A report de-
tailing— 
(A) the number and type of appropriately 
registered individuals and entities under the 
Act, including the number of applications for 
registration received, the number of applications 
for registration approved, the number of appli-
cations for registration denied; 
(B) the impact of any rescheduling on can-
nabis or cannabis-derived substances to Sched-
ules III–V or full decontrol, on further drug re-
search, including new use and new safety re-
search; 
(C) the number and type of any new drugs 
developed and approved pursuant to section 201 
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of Public Law 117–215, the Medical Marijuana 
and Cannabidiol Research Expansion Act; and 
(D) the number and type of commercial 
drug manufacturer registrants approved and 
denied pursuant to section 202 of Public Law 
117–215, 
the 
Medical 
Marijuana 
and 
Cannabidiol Research Expansion Act. 
(4) FEDERAL FOOD, DRUG, AND COSMETIC ACT 
PART J IMPLEMENTATION REPORT.—A report detail-
ing— 
(A) administrative actions taken to imple-
ment part J of the Federal Food, Drug, and 
Cosmetic Act, as added by section 301 of this 
Act, including and with specific reference to ac-
tions taken to implement non-designated State 
medical cannabis product provisions, such as 
new drug, dietary supplement, cosmetic, and 
food use provisions; and 
(B) administrative actions taken to imple-
ment part J of the Federal Food, Drug, and 
Cosmetic Act, as added by section 301 of this 
Act, including and with specific reference to ac-
tions taken to implement designated State med-
ical cannabis product provisions. 
(b) DEFINITIONS.—In this section— 
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(1) the term ‘‘appropriate congressional com-
mittees’’ means the Committee on Energy and Com-
merce of the House of Representatives and the Com-
mittee on Committee on Health Education, Labor, 
and Pensions of the United States Senate; and 
(2) the term ‘‘hemp’’ has the meaning given the 
term in section 297A of the Agricultural Marketing 
Act of 1946. 
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 
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-
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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 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-
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, 
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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— 
‘‘(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-
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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.’’. 
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 
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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)).’’. 
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. 
‘‘The Administrator may not decline to purchase or 
guarantee a debenture made under this title to an other-
wise eligible small business investment company solely be-
cause such small business investment company provides 
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financing to an entity that is a cannabis-related legitimate 
business 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: 
‘‘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-
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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 
this Act within the 30 days described above, or fail to 
make an application decision within 30 days of submission 
of a completed application, an applicant shall have the 
right to compel action under the Administrative Procedure 
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 com-
pelling a decision under this section. Such mandamus rem-
edy shall issue upon demonstration of failure to meet 
deadlines described herein. 
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TITLE V—IMPOSITION OF 
CANNABIS EXCISE TAX 
SEC. 501. LAW ENFORCEMENT RETRAINING AND SUCCESS-
FUL 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 
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) of the Internal Revenue Code. 
(b) AUTHORIZATION OF APPROPRIATIONS.—To carry 
out this section, there are 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 for fiscal year 2024, to remain available 
until expended. 
(c) FUTURE FISCAL YEARS.—For the 10 fiscal years 
following fiscal year 2024, there is 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. 
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(d) AVAILABILITY OF LAW ENFORCEMENT AND SEC-
OND CHANCES FUND.—Amounts in the Law Enforcement 
and Second Chances Fund shall be available, until ex-
pended, as provided under this section. 
(e) SET-ASIDES.— 
(1) CRISIS STABILIZATION AND COMMUNITY RE-
ENTRY GRANT PROGRAM.—Of the amounts in the 
Law Enforcement and Second Chances Fund— 
(A) 10 percent 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 percent 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 
percent shall be set aside for grants made under 
part A of title 34, United States Code. 
(3) COMMUNITY-ORIENTED POLICING SERVICES 
HIRING PROGRAM.—Of the amounts in the Law En-
forcement and Second Chances Fund, 10 percent 
shall be set aside for activities authorized by the 
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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 Depart-
ment of Justice Reauthorization Act of 2005 (Public 
Law 109–162) (‘‘the 2005 Act’’). No less than 5 
percent of this set-aside shall be directed towards 
grants made under section 1701 of title I of the 
1968 Act (42 U.S.C. 3796dd) for the hiring and re-
hiring of additional career law enforcement officers 
under part Q of such title notwithstanding sub-
section (i) of such section. 
(4) 
SUCCESSFUL
SECOND
CHANCES
PRO-
GRAM.—Of the amounts in the Law Enforcement 
and Second Chances Fund, 30 percent 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 percent shall be set aside for the 
Secretary of the Veterans Affairs to carry out the 
provisions of section 1720I(a) and 1720I(c) of title 
38, United States Code. 
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(6) STATE
RESPONSE
TO
OPIOID
ADDICTION 
FUNDING.—Of the amounts in the Law Enforcement 
and Second Chances Fund, 5 percent shall be set 
aside for the Secretary of Health and Human Serv-
ices to carry out the provisions of section 290ee–3 
of title 42, United States Code. 
(7) UNDERAGE YOUTH USE PREVENTION FUND-
ING.—Of the amounts in the Law Enforcement and 
Second Chances Fund, 5 percent shall be set aside 
for the Assistant Secretary for Mental Health and 
Substance 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, United States Code. 
(8) RAPID
RESPONSE
TO
NOVEL
CARTEL 
GROWTH.—Of the amounts in the Law Enforcement 
and Second Chances Fund, 5 percent shall be set 
aside for the Attorney General to carry out the pro-
visions of section 873(a)(5)–(6) of title 21, United 
States Code. 
(f) ALLOTMENT.—All funds for carrying out the pro-
visions 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 
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State agencies, as the Secretary of the Treasury may re-
quest to cooperate or assist in carrying out the provisions 
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. 
‘‘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 1 cal-
endar quarter before such calendar year. 
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100 
‘‘(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 10 calendar years following the passage of 
this Act, a moratorium on increasing the excise tax im-
posed on cannabis products by this section 5901. Such 
moratorium may be waived before the 10 year timeframe 
by a three-quarters vote to do so by both Houses of Con-
gress. 
‘‘(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, 
‘‘(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. 
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101 
‘‘(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 
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.— 
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102 
‘‘(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, or 
‘‘(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, 
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103 
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, 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)). 
‘‘(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, 
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104 
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. 
‘‘(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, 
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105 
‘‘(B) removes cannabis products for sale or 
consumption in the United States from a cus-
toms 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 an 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 
‘‘(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-
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106 
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— 
‘‘(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 
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107 
‘‘(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 
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 
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108 
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 
(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. 
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109 
‘‘(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 
on cannabis products removed during any semi-
monthly 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 semimonthly 
period. 
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110 
‘‘(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 
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. 
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‘‘(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 
due date shall be the immediately preceding day 
that is not a Saturday, Sunday, or such a holi-
day. 
‘‘(E) SPECIAL
RULE
FOR
UNLAWFULLY 
PRODUCED CANNABIS PRODUCTS.—In the case 
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of any cannabis products produced in the 
United States at any place other than the 
premises of a producer that has obtained the 
permit required under this chapter, tax shall be 
due and payable immediately 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 $1,000,000 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 $1,000,000 amount specified in the pre-
ceding sentence. 
‘‘(c) DEFINITION 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 
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113 
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 
‘‘(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 
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114 
for ‘at least 80 percent’ each place it 
appears in such subsection. 
‘‘(II) 
CONTROLLED
GROUPS 
THAT
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 not be included any charge for coverings 
and containers of whatever nature, and any charge 
incident to placing the article in condition packed 
ready for shipment. Further, there shall be excluded 
the amount of tax imposed by this chapter, whether 
or not stated as a separate charge. A transportation, 
delivery, insurance, installation, or other charge (not 
required by the preceding sentence to be included) 
shall likewise be excluded from the price. 
‘‘(d) PARTIAL PAYMENTS AND INSTALLMENT AC-
COUNTS.— 
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115 
‘‘(1) PARTIAL PAYMENTS.—There shall be paid 
upon each payment with respect to the article a per-
centage of such payment equal to the rate of tax in 
effect on the date such payment is due 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. 
‘‘(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— 
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116 
‘‘(i) the tax previously paid on the 
payments on such installment accounts, 
and 
‘‘(ii) the total tax that 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 
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 
that is allocable to each unpaid installment 
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. 
‘‘(3) LIMITATION.—The sum of the amounts 
payable under this subsection in respect of the sale 
of any article shall not exceed the total tax. 
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‘‘SEC. 5904. EXEMPTION FROM TAX. 
‘‘(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 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 
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, 
‘‘(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, or 
‘‘(4) by a qualified State medical cannabis pa-
tient or patients, when the cannabis product is 100 
percent donated to the patient or patients, and such 
a donated article otherwise qualifies for use as a 
‘designated State medical cannabis product’ within 
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the meaning of section 360ggg of the Federal Food, 
Drug, and Cosmetic Act Federal Food, Drug, and 
Cosmetic Act. 
‘‘(b) CANNABIS PRODUCTS TRANSFERRED OR RE-
MOVED FROM DOMESTIC FACTORIES AND EXPORT WARE-
HOUSES.— 
‘‘(1) IN GENERAL.—Subject to such regulations 
as the Secretary shall prescribe, a producer or ex-
port warehouse proprietor may transfer cannabis 
products, without payment of tax, to the premises of 
another producer or export warehouse proprietor, or 
remove such articles, without payment of tax, for 
shipment to a foreign country, Puerto Rico, the Vir-
gin Islands, or a possession of the United States, or 
for consumption beyond the jurisdiction of the inter-
nal revenue laws of the United States. 
‘‘(2) LABELING.—Cannabis products may not 
be transferred or removed under this subsection un-
less such products bear such marks, labels, or no-
tices as the Secretary shall by regulations prescribe. 
‘‘(c) CANNABIS PRODUCTS RELEASED FROM CUS-
TOMS CUSTODY.—Cannabis products imported or brought 
into the United States may be released from customs cus-
tody, without payment of tax, for delivery to a producer 
or export warehouse proprietor if such articles are not put 
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up in packages, in accordance with such regulations as 
the Secretary shall prescribe. 
‘‘(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 States Reform Act, may be re-
leased from customs custody, without payment of that 
part of the duty attributable to the internal revenue tax 
for delivery to the original producer of such cannabis prod-
ucts or to the export warehouse proprietor authorized by 
such producer to receive such products, in accordance with 
such regulations as the Secretary shall prescribe. Upon 
such release such products shall be subject to this chapter 
as if they had not been exported or otherwise removed. 
‘‘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 producer, 
importer, or export warehouse proprietor on proof 
satisfactory to the Secretary that the claimant pro-
ducer, importer, or export warehouse proprietor has 
paid the tax on— 
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‘‘(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.— 
‘‘(A) EXTENT OF LOSS ALLOWANCE.—No 
tax shall be collected in respect of cannabis 
products lost or destroyed, 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 
negligence on the part of the proprietor of 
cannabis production facility, or owner, con-
signor, 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. 
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121 
‘‘(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-
duction facility, or 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 
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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 premises. 
‘‘(3) VOLUNTARY DESTRUCTION.—The propri-
etor of a cannabis production facility or other per-
sons liable for the tax imposed by this chapter or by 
section 7652 with respect to any cannabis product 
may voluntarily destroy such products, but only if 
such destruction is under such supervision and 
under such regulations as the Secretary may pre-
scribe. 
‘‘(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 
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123 
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 as the Secretary shall prescribe. 
‘‘Subchapter B—Operations 
‘‘SEC. 5911. INVENTORIES, REPORTS, AND RECORDS. 
‘‘(a) REQUIREMENTS.—Every cannabis business shall 
maintain inventories required by section 471 of title 26, 
Internal Revenue Code, as the Secretary shall by formal 
rulemaking prescribe, with such inventories to be subject 
to verification by any Internal Revenue official during 
business hours, in such form, at such times, and for such 
periods as the Secretary shall by formal rulemaking pre-
scribe. 
‘‘(1) The formal rulemaking shall take into con-
sideration existing State reporting and inventory 
tracking mechanisms and be compatible with exist-
ing State reporting and inventory tracking mecha-
nisms to the extent possible. 
‘‘(2) The formal rulemaking may allow for the 
creation of Federal processes and systems to supple-
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ment, and that are compatible with, existing State 
tracking and reporting mechanisms. 
‘‘(3) Rulemaking with respect to this section 
5911 shall take place pursuant to the Administrative 
Procedure Act (5 U.S.C. 500 et seq.) and encompass 
Paperwork Reduction Act considerations. 
‘‘(b) REPORT.—The Secretary shall provide an an-
nual report on the inventories, sales, and origin of re-
ported cannabis products. 
‘‘SEC. 5912. 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, including, but not limited to, the 
total amount of THC or tetrahydrocannabinol. 
‘‘(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 a cannabis 
product or cannabis products. 
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‘‘(d) EXCEPTIONS.—Subject to regulations pre-
scribed by the Secretary, cannabis products may be ex-
empted from subsections (a) and (b) if such products 
are— 
‘‘(1) for experimental purposes, or 
‘‘(2) transferred to the premises of another pro-
ducer or export warehouse proprietor or released 
from customs custody for delivery to a producer. 
‘‘SEC. 5913. 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) that, 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 that are not put up in packages as required 
under section 5912 or that are put up in packages 
not bearing the marks, labels, and notices, as re-
quired 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 that are not put up in pack-
ages as required under section 5912 or that 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. 5914. 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. 5915. 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 5921, 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). 
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‘‘Subchapter C—Penalties 
‘‘SEC. 5921. 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.—Every person who— 
‘‘(1) sells, relands, or receives within the juris-
diction of the United States any cannabis products 
that have been labeled or shipped for exportation 
under this chapter, 
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‘‘(2) sells or receives such relanded cannabis 
products, or 
‘‘(3) 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. 
‘‘(f) FRAUDULENT OFFENSES.—Whoever, with in-
tent to defraud the United States— 
‘‘(1) engages in business as a cannabis business 
without filing the application and obtaining the per-
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mit where required by this chapter or regulations 
thereunder, 
‘‘(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) that, 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. 
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‘‘(g) LIABILITY TO TAX.—Any person who possesses 
cannabis products in violation of subsection (f) shall be 
liable for a tax equal to the tax on such articles.’’. 
SEC. 503. REPORTS AND CONFORMING AMENDMENTS. 
(a) MARKET 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 Sec-
retary’s delegate, shall— 
(1) conduct a study concerning the characteris-
tics of the cannabis industry, including the number 
of persons operating cannabis businesses 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. 
(b) CROSS-POLLINATION PREVENTION STUDY.—Not 
later than 1 year after the date of the enactment of this 
Act, the United States Department of Agriculture shall 
conduct a study on the risk and actual frequency of cross- 
pollination between hemp (as defined in section 297(A) of 
the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o)) 
and raw cannabis (as defined in section 202(c) of this 
Act), and shall publish its findings in a Report to the 
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House Agricultural Committee and the Senate Committee 
on Agriculture, Nutrition, and Forestry. 
(c) 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 that the 
Secretary anticipates using to determine the applicable ex-
cise tax rates that will apply for such calendar year under 
section 5901(c)(2) of such Code. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 6103(o)(1)(A) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘and fire-
arms’’ and inserting ‘‘firearms, and cannabis prod-
ucts’’. 
(2) The table of chapters for subtitle E of the 
Internal Revenue Code of 1986 is amended by add-
ing at the end the following new chapter: 
‘‘CHAPTER 56. CANNABIS PRODUCTS’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to sales, and applications for 
permits under section 5912 of the Internal Revenue 
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Code of 1986 (as added by subsection (a)), after 
180 days after the date of the enactment of this Act. 
(2) SPECIAL
RULES
FOR
EXISTING
BUSI-
NESSES.—In the case of any producer operating 
under a permit issued on or before the date of the 
enactment of this Act under State law, the require-
ments under section 5912 of such Code (as so 
added) shall apply beginning on the date that is 6 
months after the date of the enactment of this Act. 
(3) ESTABLISHMENT
OF
LAW
ENFORCEMENT 
RETRAINING
AND
SUCCESSFUL
SECOND
CHANCES 
FUND.—The amendments made by subsection (a) 
shall take effect on the date of enactment of this 
Act. 
TITLE VI—VETERANS’ CARE AND 
ACCESS 
SEC. 601. NONDISCRIMINATION IN FEDERAL HIRING FOR 
VETERAN MEDICAL CANNABIS USERS. 
(a) IN GENERAL.—It shall be unlawful for a ‘‘vet-
eran’’, as defined in section 101(2) of title 38, United 
States Code, to be excluded from employment in the Fed-
eral Government solely because the veteran consumes or 
has consumed cannabis, as defined in section 102(16) of 
the Controlled Substances Act (21 U.S.C. 802(16)). For 
the purposes determining if a person is a veteran under 
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this provision, an other than honorable, bad conduct, or 
dishonorable release premised solely on nonviolent can-
nabis charges covered under section 101 of the States Re-
form Act shall be construed as a general discharge. 
SEC. 602. AUTHORIZED PROVISION OF INFORMATION ON 
STATE-APPROVED 
MARIJUANA 
PROGRAMS 
TO VETERANS. 
(a) AUTHORIZED PROVISION
OF INFORMATION.— 
Notwithstanding the provisions of the Controlled Sub-
stances Act (21 U.S.C. 801 et seq.) or any other Federal, 
State, or local law regulating or prohibiting the provision 
of information on marijuana, the Secretary of Veterans 
Affairs shall authorize physicians and other health care 
providers of the Veterans Health Administration of the 
Department of Veterans Affairs to provide to veterans who 
are residents of States with State-approved marijuana 
programs information regarding the participation of such 
veterans in such programs, recommend their participation 
in such programs or use of FDA-approved or designated 
State medical cannabis products (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 Cos-
metic Act)) as part of a course of Veterans Affairs treat-
ment, or prescribe the use of FDA-approved or designated 
State medical cannabis products (within the meaning of 
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136 
part J of subchapter V of chapter 9 of title 21 of the 
United States Code (the Federal Food, Drug, and Cos-
metic Act)). 
(b) DEFINITIONS.—In this section: 
(1) INFORMATION.—The term ‘‘information’’ 
includes details such as informational materials, 
internet websites, and relevant contact information 
for State-approved marijuana programs. 
(2) MARIJUANA.—The term ‘‘marijuana’’ has 
the meaning given the term ‘‘marihuana’’ in section 
102 of the Controlled Substances Act (21 U.S.C. 
802). 
(3) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, any territory, Fed-
eral enclave, or possession of the United States, and 
each federally recognized Indian Tribe. 
TITLE VII—MISCELLANEOUS UP-
DATES 
AND 
TECHNICAL 
AMENDMENTS 
SEC. 701. UNITED STATES INTERNATIONAL CANNABIS COM-
MERCE POLICY. 
(a) UNITED STATES FOREIGN POLICY OBJECTIVES 
WITH RESPECT TO CANNABIS.— 
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(1) The President of the United States and the 
United States Trade Representative shall send trade 
missions and engage in treaty-making with foreign 
jurisdictions that have legalized the import and ex-
port of cannabis to provide for the legal trade be-
tween the United States and foreign jurisdictions. 
(2) The principal negotiating objectives of the 
United States with respect to trade shall include the 
removal of unjustified foreign barriers to trade in 
cannabis, cannabis derivatives, and cannabis prod-
ucts. 
(3) The United Nations Ambassador is tasked 
with similarly ensuring updates to international ac-
cords to reflect current practices. 
(b) RULE OF CONSTRUCTION FOR INTERNATIONAL 
TREATIES RESPECTING DRUG POLICY; FEDERAL PRI-
MACY ON SCHEDULING DECISIONS.—It is the policy of the 
United States that the power of the Federal Government 
to control, alter, heighten, lower, abolish, decontrol, or 
likewise modify drug control scheduling for any particular 
substance, including cannabis, is a vested power of the ar-
ticle I constitutional lawmaking power that no treaty, in-
cluding the 1961 Single Convention on Narcotic Drugs, 
the 1971 Convention on Psychotropic Substances, 1972 
Protocol Amending the Single Convention on Narcotic 
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Drugs, and the 1988 United Nations Convention Against 
Illicit Traffic in Narcotic Drugs and Psychotropic Sub-
stances, may infringe upon, oblige or impose a duty on 
the United States not to undertake at its pleasure, or oth-
erwise modify. This provision shall constitute a rule of 
construction for all Federal courts to apply in all cases. 
SEC. 702. CONTINUED FEDERAL EMPLOYEE DRUG TESTING. 
(a) 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) CANNABIS.— 
‘‘(1) CONTINUED
TESTING.—Notwithstanding 
the States Reform Act and the amendments made 
thereby, the Secretary of Health and Human Serv-
ices may continue to include cannabis for purposes 
of drug testing of Federal employees subject to Ex-
ecutive Order 12564, or other applicable Federal 
laws and orders. 
‘‘(2) DEFINITION.—The term ‘cannabis’ has 
the meaning given to the term ‘marihuana’ in sec-
tion 102 of the Controlled Substances Act (21 
U.S.C. 802).’’. 
(b) SPECIAL RULE FOR CERTAIN REGULATIONS.— 
The amendments made by this section may not be con-
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strued to abridge the authority of the Secretary of Trans-
portation, or the Secretary of the department in which the 
Coast Guard is operating, to regulate and screen for the 
use of cannabis or a controlled substance within the mean-
ing of section 102 of the Controlled Substances Act (21 
U.S.C. 802). 
SEC. 703. DEMOGRAPHIC DATA ON NEW INDUSTRY OF CAN-
NABIS BUSINESS OWNERS AND EMPLOYEES. 
(a) IN GENERAL.—The Bureau of Labor Statistics 
shall regularly compile, maintain, and make public data 
on the demographics of— 
(1) individuals who are business owners in the 
cannabis industry; and 
(2) individuals who are employed in the 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; 
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140 
(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 ‘‘marihuana’’, as defined in section 102 of the 
Controlled Substances Act (21 U.S.C. 802), or ‘‘can-
nabis’’, 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-
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. 
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SEC. 704. CONFORMING AMENDMENT TO CREATE UNI-
FORMITY OF REFERENCES IN EXISTING LAW 
TO CANNABIS, MARIJUANA, OR MARIHUANA. 
Wherever, in the statutes of the United States or in 
the rulings, regulations, or interpretations of various ad-
ministrative bureaus and agencies of the United States— 
(1) there appears or may appear the term 
‘‘marihuana’’ or ‘‘marijuana’’, that term shall be 
struck and the term ‘‘cannabis’’ shall be inserted; 
and 
(2) there appears or may appear the term 
‘‘Marihuana’’ or ‘‘Marijuana’’, that term shall be 
struck and the term ‘‘Cannabis’’ shall be inserted. 
SEC. 705. SECURITY CLEARANCES. 
(a) SECURITY CLEARANCES.—Federal agencies must 
treat past or present cannabis use like alcohol, and not 
a schedule I substance, in rendering decisions for grant-
ing, denying, or rescinding a security clearance. 
(b) REASSESSMENT.— 
(1) IN GENERAL.—An individual shall be enti-
tled to reassessment of their security clearance 
credentialing by mailing a certified letter requesting 
notice of entitlement of reassessment of denial of 
such under this section 705 to the General Counsel 
or chief legal officer of the denying Federal agency. 
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(2) NOTICE.—An individual requesting reas-
sessment notice under paragraph (1) shall be noti-
fied either of their entitlement to such reassessment 
under paragraph (1), or denial of entitlement to re-
assessment, within 90 days of requesting such re-
view from the denying agency. Any such denial shall 
state that there are grounds under than solely past 
or present cannabis or marijuana use consistent with 
like use of alcohol under which the agency made the 
decision. 
(3) INDIVIDUAL
DESCRIBED.—In this sub-
section, the term ‘‘individual described’’ means any 
individual who has had a security clearance denied 
or rescinded for past or present cannabis or mari-
juana use. 
(4) JUDICIAL REVIEW.—Failure to provide no-
tice of entitlement or non-entitlement is judicially re-
viewable after 180 days from the making of such re-
quest of an agency in the United States District 
Court for the Eastern District of Virginia. Upon 
finding of undue delay, the court shall enjoin the 
agency to make a decision and provide notice within 
30 days, and such other equitable relief as the court 
may see fit. 
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