I 
117TH CONGRESS 
1ST SESSION H. R. 5977 
To amend the Controlled Substances Act regarding marihuana, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 15, 2021 
Ms. MACE (for herself, Mr. MCCLINTOCK, Mr. YOUNG, Mr. MAST, and Mr. 
MEIJER) introduced the following bill; which was referred to the Com-
mittee on the Judiciary, and in addition to the Committees on Energy 
and Commerce, Natural Resources, Agriculture, Transportation and In-
frastructure, Armed Services, Ways and Means, Small Business, Vet-
erans’ Affairs, Oversight and Reform, Education and Labor, and Foreign 
Affairs, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Controlled Substances Act regarding 
marihuana, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘States Reform Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
Sec. 1. Short title; table of contents. 
TITLE I—DECRIMINALIZATION OF MARIJUANA AND DEFERENCE 
TO STATE POWERS OF PROHIBITION 
Sec. 101. Federal decriminalization of cannabis, and State control deference. 
TITLE II—REGULATION OF MARIJUANA LIKE ALCOHOL 
Sec. 201. Food and Drug Administration. 
Sec. 202. Department of Agriculture regulation of raw cannabis like barley, 
hops, and grain. 
Sec. 203. Addition of raw cannabis to certain authorities relating to agricul-
tural production. 
‘‘Subtitle H—Raw Cannabis Production 
‘‘Sec. 298A. Definitions. 
‘‘Sec. 298B. State and Tribal plans. 
‘‘Sec. 298C. Department of Agriculture plan. 
‘‘Sec. 298D. Authority to issue regulations and guidelines. 
Sec. 204. Administration like alcohol under Tax and Trade Bureau. 
Sec. 205. Transferring agency functions with regard to marijuana. 
Sec. 206. Transition safe harbor and administrative remedies. 
Sec. 207. Unfair advertising practices and 21 age limit. 
Sec. 208. Federal cannabis administration under the Federal Alcohol Adminis-
tration Act. 
‘‘TITLE III—CANNABIS 
‘‘Sec. 301. Unlawful business without cannabis permit. 
‘‘Sec. 302. Procedure for issuance of cannabis permit. 
‘‘Sec. 304. Definitions. 
TITLE III—DESIGNATED STATE MEDICAL CANNABIS PRODUCT 
SAFETY ACT 
Sec. 301. Grandfathering of State medical cannabis products into interstate 
commerce. 
‘‘PART J—DESIGNATED STATE MEDICAL CANNABIS PRODUCTS 
‘‘Sec. 360ggg. Definitions. 
‘‘Sec. 360ggg–1. Regulation of medical cannabis products. 
‘‘Sec. 360ggg–2. Cannabis-infused foods, beverages, and supplements. 
‘‘Sec. 360ggg–3. Cannabis cosmetics. 
‘‘Sec. 360ggg–4. Liability and method of payment. 
‘‘Sec. 360ggg–5. Private right of action and administrative remedy. 
TITLE IV—SMALL BUSINESS ADMINISTRATION PROVISIONS 
Sec. 401. Fair Small Business Administration access. 
Sec. 402. Disaster loan nondiscrimination. 
Sec. 403. Microloan nondiscrimination. 
Sec. 404. Small business investment company debenture nondiscrimination. 
‘‘Sec. 321. Debentures to finance cannabis-related businesses and service 
providers. 
Sec. 405. State or local development loan non-discrimination. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6211
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘Sec. 511. Loans to cannabis-related legitimate businesses and service pro-
viders. 
Sec. 406. Rulemaking and disbursement. 
Sec. 407. Administrative Procedure Act and mandamus remedies. 
TITLE V—IMPOSITION OF CANNABIS EXCISE TAX 
Sec. 501. Law Enforcement Retraining and Successful Second Chances Fund. 
‘‘Sec. 9512. Law Enforcement Retraining and Second Chances Fund. 
Sec. 502. Cannabis Revenue and Regulation Act. 
‘‘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 removal. 
‘‘Sec. 5914. Restrictions relating to marks, labels, notices, and packages. 
‘‘Sec. 5915. Restriction on importation of previously exported cannabis 
products. 
‘‘SUBCHAPTER C—PENALTIES 
‘‘Sec. 5921. Civil penalties. 
Sec. 503. Reports and conforming amendments. 
TITLE VI—VETERANS’ CARE AND ACCESS 
Sec. 601. Nondiscrimination in Federal hiring for veteran medical cannabis 
users. 
Sec. 602. Authorized provision of information on State-approved marijuana 
programs to veterans. 
TITLE VII—MISCELLANEOUS UPDATES AND TECHNICAL 
AMENDMENTS 
Sec. 701. United States international cannabis commerce policy. 
Sec. 702. Continued Federal employee drug testing. 
Sec. 703. Demographic data on new industry of cannabis business owners and 
employees. 
Sec. 704. Conforming amendment to create uniformity of references in existing 
law to cannabis, marijuana, or marihuana. 
Sec. 705. Effective upon enactment. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6211
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
TITLE 
I—DECRIMINALIZATION 
OF 
MARIJUANA 
AND 
DEF-
ERENCE TO STATE POWERS 
OF PROHIBITION 
SEC. 101. FEDERAL DECRIMINALIZATION OF CANNABIS, 
AND STATE CONTROL DEFERENCE. 
(a) PREEMPTION
OF CANNABIS REMOVED FROM 
SCHEDULE OF CONTROLLED SUBSTANCES.— 
(1) REMOVAL OF FEDERAL CONTROLLED SUB-
STANCES
ACT
PREEMPTION.—Subsection (c) of 
schedule I of section 202(c) of the Controlled Sub-
stances Act (21 U.S.C. 812) is amended— 
(A) by striking ‘‘(10) Marihuana.’’; and 
(B) 
by 
striking 
‘‘(17) 
Tetrahydrocannabinols, 
except 
for 
tetrahydrocannabinols in hemp (as defined in 
section 297A of the Agricultural Marketing Act 
of 1946).’’. 
(2) TREATMENT
LIKE
ALCOHOL
IN
CON-
TROLLED SUBSTANCES ACT.—The Controlled Sub-
stances Act (21 U.S.C. 802(6)) is amended—by in-
serting ‘‘Marihuana,’’ after ‘‘malt beverages,’’. 
(3) RESIDUAL RULEMAKING.—Not later than 
30 days after the date of the enactment of this Act, 
the Attorney General shall administratively revise 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
the current regulations at 21 CFR 1308.11 and re-
lated provisions to clarify that for the purposes of 
the Controlled Substances Act and related statutes, 
in light of the States Reform Act, marihuana and 
tetrahydrocannabinols are each deemed by Congress 
to be a drug or other substance that does not meet 
the requirements for inclusion in any schedule. Such 
administrative rulemaking amendments shall not be 
subject to the requirements of the Administrative 
Procedure Act other than notice of changes in the 
Federal Register. Any regulations inconsistent with 
this Act shall be deemed invalid on the date of en-
actment of this Act for all purposes including but 
not limited to any offense committed, case pending, 
conviction entered, and, in the case of a juvenile, any 
offense committed, case pending, and adjudication of 
juvenile delinquency entered before, on, or after the 
date of enactment of this Act. 
(b) CONFORMING AMENDMENTS
TO CONTROLLED 
SUBSTANCES ACT AND CONTROLLED SUBSTANCES IM-
PORT AND EXPORT ACT.— 
(1) The Controlled Substances Act (21 U.S.C. 
801 et seq.) is amended— 
(A) 
in 
section 
102(44) 
(21 
U.S.C. 
802(44)), by striking ‘‘marihuana,’’; 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
(B) 
in 
section 
401(b) 
(21 
U.S.C. 
841(b))— 
(i) in paragraph (1)— 
(I) in subparagraph (A)— 
(aa) in clause (vi), by insert-
ing ‘‘or’’ after the semicolon; 
(bb) by striking clause (vii); 
and 
(cc) by redesignating clause 
(viii) as clause (vii); 
(II) in subparagraph (B)— 
(aa) in clause (vi), by insert-
ing ‘‘or’’ after the semicolon; 
(bb) by striking clause (vii); 
and 
(cc) by redesignating clause 
(viii) as clause (vii); 
(III) in subparagraph (C), in the 
first sentence, by striking ‘‘subpara-
graphs (A), (B), and (D)’’ and insert-
ing ‘‘subparagraphs (A) and (B)’’; 
(IV) by striking subparagraph 
(D); 
(V) by redesignating subpara-
graph (E) as subparagraph (D); and 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
(VI) in subparagraph (D)(i), as 
so redesignated, by striking ‘‘subpara-
graphs (C) and (D)’’ and inserting 
‘‘subparagraph (C)’’; 
(ii) by striking paragraph (4); and 
(iii) by redesignating paragraphs (5), 
(6), and (7) as paragraphs (4), (5), and 
(6), respectively; 
(C) in section 402(c)(2)(B) (21 U.S.C. 
842(c)(2)(B)), by striking ‘‘, marihuana,’’; 
(D) in section 403(d)(1) (21 U.S.C. 
843(d)(1)), by striking ‘‘, marihuana,’’; 
(E) in section 418(a) (21 U.S.C. 859(a)), 
by striking the last sentence; 
(F) in section 419(a) (21 U.S.C. 860(a)), 
by striking the last sentence; 
(G) 
in 
section 
422(d) 
(21 
U.S.C. 
863(d))— 
(i) in the matter preceding paragraph 
(1), by striking ‘‘marijuana,’’; and 
(ii) in paragraph (5), by striking ‘‘, 
such as a marihuana cigarette,’’; and 
(H) in section 516(d) (21 U.S.C. 886(d)), 
by striking ‘‘section 401(b)(6)’’ each place the 
term appears and inserting ‘‘section 401(b)(5)’’. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
(2) Section 1010(b) of the Controlled Sub-
stances Import and Export Act (21 U.S.C. 960) is 
amended— 
(A) in paragraph (1)— 
(i) in subparagraph (F), by inserting 
‘‘or’’ after the semicolon; 
(ii) by striking subparagraph (G); and 
(iii) by redesignating subparagraph 
(H) as subparagraph (G); 
(B) in paragraph (2)— 
(i) in subparagraph (F), by inserting 
‘‘or’’ after the semicolon; 
(ii) by striking subparagraph (G); and 
(iii) by redesignating subparagraph 
(H) as subparagraph (G); 
(C) in paragraph (3), by striking ‘‘para-
graphs (1), (2), and (4)’’ and inserting ‘‘para-
graphs (1) and (2)’’; 
(D) by striking paragraph (4); and 
(E) by redesignating paragraphs (5), (6), 
and (7) as paragraphs (4), (5), and (6), respec-
tively. 
(c) OTHER CONFORMING AMENDMENTS.— 
(1) NATIONAL FOREST SYSTEM DRUG CONTROL 
ACT OF 1986.—The National Forest System Drug 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
Control Act of 1986 (16 U.S.C. 559b et seq.) is 
amended— 
(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— 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
(i) by striking ‘‘means any substance’’ 
and inserting the following: ‘‘means— 
‘‘(A) any substance’’; and 
(ii) by striking the period at the end 
and inserting: 
‘‘(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: 
‘‘(B) any substance not covered under sub-
paragraph (A) that was a substance under such 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
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— 
(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: 
‘‘(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: 
‘‘(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.’’. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
(7) GCA PROVISIONS.—Section 921(a) of title 
18, United States Code, is amended by adding at 
the end the following: 
‘‘(36) The term ‘unlawful user of or addicted to 
any controlled substance’ shall not include a person 
by reason of unlawful use of or addiction to mari-
huana (as defined in section 102(16) of the Con-
trolled Substances Act, 21 U.S.C. 802(16)).’’. 
(d) SECOND CHANCES FOR NONVIOLENT CANNABIS 
OFFENDERS.— 
(1) RETROACTIVE APPLICATION TO MARIHUANA 
OFFENSES.—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 
committed, case pending, conviction entered, and, in 
the case of a juvenile, any offense committed, case 
pending, or adjudication of juvenile delinquency en-
tered before, on, or after the date of enactment of 
this Act— 
(A) LIMITATION OF RETROACTIVE APPLI-
CATION TO NONVIOLENT AND RELATED NON-
VIOLENT MARIHUANA OFFENSES.—Such appli-
cation and retroactivity described in this sub-
section (d) shall extend to any nonviolent of-
fense or offenses covered under paragraph (1) 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
and any related nonviolent offenses that would 
not have satisfied all elements of the charged 
offense or offenses but for the involvement of 
marijuana, marihuana as defined in 21 U.S.C. 
802(16), or tetrahydrocannabinols, related non-
violent cases pending, related nonviolent convic-
tions entered, and, in the case of a juvenile, any 
related nonviolent offense committed, related 
nonviolent case pending, or related nonviolent 
adjudication of juvenile delinquency entered be-
fore, on, or after the date of enactment of this 
Act. This provision is meant to be extended to 
nonviolent offenses charged, pending, or other-
wise, previously found to be crimes of violence 
subsequently found to be unconstitutionally 
vague or restricted, e.g., United States v. Davis, 
139 S. Ct. 2319 (2019) (holding 18 U.S.C. 
924(c) 
residual 
clause 
unconstitutionally 
vague); Sessions v. Dimaya, 138 S. Ct. 1204 
(2018) (finding 18 U.S.C. 16(b) to be unconsti-
tutionally void for vagueness as incorporated 
into other statutes). 
(B) LIMITATION
TO
ONLY
CANNABIS.— 
This provision applies solely to persons who 
traded exclusively in marijuana, marihuana as 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
defined 
in 
U.S.C. 
802(16), 
or 
tetrahydrocannabinols rather than other sub-
stances controlled under the Controlled Sub-
stances Act. 
(C) SCOPE.—This provision applies to each 
and every organ of the Federal Government. 
(D) 
POST-PASSAGE
LIMITATION.—This 
provision does not apply to acts or transactions 
occurring after the passage of this Act that are 
not in compliance with this Act and other appli-
cable laws. 
(E) FOREIGN
DRUG
CARTEL
MEMBERS 
SPECIFICALLY EXCLUDED.—This provision does 
not apply to persons that are or were merely 
the instrumentality of a foreign agent, ‘‘drug 
cartel’’, or power. 
(F) DUI EXCLUSION.—This provision does 
not apply specifically to convictions or sentences 
of an offense of operating a motor vehicle under 
the influence of a drug or alcohol within the 
meaning of title 18 of the United States Code, 
section 13(b), an offense of operating or being 
in actual physical control of a motor vehicle 
within the meaning of title 36, section 4.23 of 
the Code of Federal Regulations, or drunken or 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
reckless operation of vehicle, aircraft or vessel 
within the meaning of article 111 of the Uni-
form Code of Military Justice, title 10 of the 
United States Code, section 911. 
(G) JUDICIAL REVIEW.—Questions of non- 
violence are reviewable in any proceeding initi-
ated under this subsection (d) or the following 
subsection (e). For an example of a person con-
sidered under this law to be a nonviolent can-
nabis offender based on the totality of facts in 
the case, please refer to the case of United 
States v. Angelos, 345 F. Supp. 2d 1227 (D. 
Utah 2004). 
(2) APPLICATION TO PENDING ACTIONS.—For 
all pending criminal charges or cases and convictions 
awaiting sentencing impacted by amendments made 
by this subsection to the Controlled Substances Act 
(21 U.S.C. 801 et seq.), the attorney for the Govern-
ment shall drop the relevant charges or seek dis-
missal of all pending charges within 14 days after 
the date of enactment of this Act. Any person held 
in pretrial detention and entitled to dismissal of rel-
evant charges under this provision, and not detained 
for any other reason, shall be entitled to issuance of 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
a writ under 28 U.S.C. 2241 or 28 U.S.C. 1361, to 
effectuate immediate release. 
(3) APPLICATION TO DEFENDANTS PREVIOUSLY 
SENTENCED.—In the case of a defendant who, be-
fore the date of enactment of this Act, was convicted 
or sentenced for any Federal offense involving mari-
juana, marihuana as defined in 21 U.S.C. 802(16), 
or tetrahydrocannabinols and not serving a sentence 
for any conduct not covered by this Act or serving 
multiple sentences as provided in 18 U.S.C. 3584, 
the Director of the Bureau of Prisons, United States 
Marshals Service, or U.S. Parole Commission shall 
release such individual from its control within 14 
days after the date of enactment of this Act. Any 
person not so timely released and entitled to such 
under this provision shall be entitled to issuance of 
a writ under 28 U.S.C. 2241 or 28 U.S.C. 1361, to 
effectuate immediate release. 
(4) CUMULATIVE
SENTENCING
RECONSIDER-
ATION.—In the case of a defendant who, before the 
date of enactment of this Act, was convicted or sen-
tenced for any Federal offense involving marijuana, 
marihuana, or tetrahydrocannabinols but is also 
serving a sentence for any other crime not covered 
by this Act, the sentencing court may, on motion of 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
the defendant, the Director of the Bureau of Pris-
ons, the attorney for the Government, or on its own 
motion, impose a reduced sentence after considering 
the factors set forth in section 3553(a) of title 18, 
United States Code. 
(5) CESSATION OF ALL MARIHUANA ADMINIS-
TRATIVE
ACTIONS
AND
REPATRIATION
OF
PROP-
ERTY.—Notwithstanding any other provision of law, 
the Federal Government shall not pursue, and shall 
immediately desist any present administrative or en-
forcement action, or criminal or civil asset forfeiture 
proceeding, against any U.S. person where the cause 
of controversy is rooted in the illicit marihuana, as 
defined 
in 
U.S.C. 
802(16), 
or 
tetrahydrocannabinols trade for nonviolent acts hav-
ing occurred between the passage of the Marijuana 
Tax Act of 1937 (Public Law 75–238, 50 Stat. 551) 
and this Act, nor shall the proceeds of such trade or 
acts be considered the proceeds of illegal drug trade 
or any kind of criminal or illicit activity under sec-
tions 981, 1956 or 1957 of title 18, United States 
Code, or any other provision of law, even if such ac-
tivity occurred before the date of enactment of this 
Act. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
(A) LIMITATION
TO
ONLY
CANNABIS.— 
This provision applies solely to persons who 
traded exclusively in marijuana, marihuana as 
defined 
in 
U.S.C. 
802(16), 
or 
tetrahydrocannabinols rather than other sub-
stances controlled under the Controlled Sub-
stances Act. 
(B) SCOPE.—This provision applies to 
each and every organ of the Federal Govern-
ment. 
(C) 
POST-PASSAGE
LIMITATION.—This 
provision does not apply to acts or transaction 
occurring after the passage of this Act that are 
not in compliance with this Act and other appli-
cable laws. 
(D) FOREIGN
DRUG
CARTEL
MEMBERS 
SPECIFICALLY EXCLUDED.—This provision does 
not apply to persons that are or were merely 
the instrumentality of a foreign agent, ‘‘drug 
cartel’’, or power. 
(E) DUI EXCLUSION.—This provision does 
not apply specifically to convictions or sentences 
of an offense of operating a motor vehicle under 
the influence of a drug or alcohol within the 
meaning of title 18 of the United States Code, 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
section 13(b), an offense of operating or being 
in actual physical control of a motor vehicle 
within the meaning of title 36, section 4.23 of 
the Code of Federal Regulations, or drunken or 
reckless operation of a vehicle, aircraft or vessel 
within the meaning of article 111 of the Uni-
form Code of Military Justice, title 10 of the 
United States Code, section 911. 
(6) APPLICATION TO MILITARY LAW.—Notwith-
standing any other provision of law, the provisions 
of this subsection (d) shall apply to proceedings in-
volving military courts, tribunals, courts-martial, 
and offenses under the Uniform Code of Military 
Justice. 
(A) Former servicemembers and veterans 
that received other than honorable, bad con-
duct, or dishonorable discharges premised solely 
on nonviolent cannabis offenses covered under 
this subsection (d) shall be entitled to petition 
and receive from a service branch discharge re-
view board or the Board of Correction for Mili-
tary Records, as jurisdictionally appropriate, an 
upgrade to a general discharge. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
(e) EXPUNGEMENT OF NONVIOLENT FEDERAL CAN-
NABIS OFFENSES.—Subsection (c) of 18 U.S.C. 3607 is 
amended— 
(1) by adding (1) before ‘‘If’’; 
(2) by adding the following after ‘‘thereof’’: 
‘‘(2) Not later than 1 year after the date of the 
enactment of this Act, each Federal district shall 
conduct a comprehensive review and issue an order 
expunging, without financial commitment from the 
offender, each conviction or adjudication for any 
Federal offense involving marijuana, marihuana as 
defined 
in 
U.S.C. 
802(16), 
or 
tetrahydrocannabinols, including related nonviolent 
marihuana offenses, entered by each Federal court 
in the district before the date of enactment of this 
Act. Each Federal court shall also issue an order 
expunging any arrests associated with each ex-
punged conviction or adjudication. The expungement 
order shall direct that there be expunged from all of-
ficial records all references to his or her arrest for 
the offense, the institution of criminal proceedings 
against him, and the results thereof.’’; and 
(3) by adding (3) before ‘‘The.’’. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
TITLE II—REGULATION OF 
MARIJUANA LIKE ALCOHOL 
SEC. 201. FOOD AND DRUG ADMINISTRATION. 
(a) The Food and Drug Administration shall have the 
same authorities with respect to cannabis products that 
it has with respect to alcohol and no more. 
(b) This clause shall not be construed to limit the 
Food and Drug Administration’s role in regulating des-
ignated State medical cannabis products, drugs or botan-
ical drugs containing cannabis or its derivatives, cannabis 
cosmetics, or dietary supplements containing cannabis or 
its derivatives under part J of subchapter V of chapter 
9 of title 21 of the United States Code (the Federal Food, 
Drug, and Cosmetic Act). 
SEC. 202. DEPARTMENT OF AGRICULTURE REGULATION OF 
RAW CANNABIS LIKE BARLEY, HOPS, AND 
GRAIN. 
(a) USDA TO REGULATE RAW CANNABIS FARM-
ING.—The United States Department of Agriculture shall 
regulate the farming and production of raw cannabis, in-
cluding, but not limited to, the seeds, mature stalks, and 
cultivation of raw cannabis as a traditional agricultural 
commodity, such as grain, hops, and barley, and as a spe-
cialty crop. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
(b) RULEMAKING AUTHORITY.—Not later than 90 
days after the date of enactment of this Act, the Secretary 
of Agriculture or his or her designee shall— 
(1) issue guidance and enter formal rulemaking 
as necessary to carry out this Act and to bring raw 
cannabis into line with the treatment of other tradi-
tional agricultural commodities, such as grain, hops, 
and barley; 
(2) issue guidance dually designating raw can-
nabis as a specialty crop in addition to an agricul-
tural commodity; and 
(3) without regard to the notice and comment 
provisions of section 553 of title 5, United States 
Code, the Secretary of Agriculture shall revise part 
990 of title 7, Code of Federal Regulations, make 
any conforming changes that are necessary as a re-
sult of this section and the amendments made by 
this section. 
(c) RAW CANNABIS DEFINED; NOT FINISHED CAN-
NABIS PRODUCTS.—Raw cannabis refers to marihuana 
within the meaning of section 801(16) of the Controlled 
Substances Act (21 U.S.C. 801 et seq.) including, but not 
limited to, all parts of the plant Cannabis sativa L., 
whether growing or not; the seeds thereof, and the mature 
stalks of the plant. Raw cannabis does not include finished 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
products meant for commercial sale as cannabis products 
regulated under title III of the Federal Alcohol Adminis-
tration Act or designated State medical cannabis products 
regulated under part J of subchapter V of chapter 9 of 
title 21 of the United States Code (the Federal Food, 
Drug, and Cosmetic Act), such as the resin extracted from 
any part of such plant; and every compound, manufacture, 
salt, derivative, mixture, or preparation of such plant or 
its resin (or industrial hemp). 
(d) RIGHT OF ACTION.—An adversely affected person 
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 Sec-
retary or the designated officer, employee or agent of the 
Department of Agriculture to promulgate regulations or 
undertake and finalize rulemaking required under this Act 
that are not promulgated or published within the time 
frames set forth herein, or to act on applications for the 
permits or licenses herein required, 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 equity, equitable 
relief in the form of a writ of mandamus compelling action 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
shall issue, among such other relief as the court may see 
fit. 
SEC. 203. ADDITION OF RAW CANNABIS TO CERTAIN AU-
THORITIES RELATING TO AGRICULTURAL 
PRODUCTION. 
(a) AGRICULTURAL MARKETING ACT OF 1946.—The 
Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et 
seq.) is amended by adding at the end the following: 
‘‘Subtitle H—Raw Cannabis 
Production 
‘‘SEC. 298A. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) RAW CANNABIS.—The term ‘raw cannabis’ 
has the same meaning as it is given in section 
202(3) of the States Reform Act. 
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 5304). 
‘‘(3) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Agriculture. 
‘‘(4) STATE.—The term ‘State’ means— 
‘‘(A) a State; 
‘‘(B) the District of Columbia; 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(C) the Commonwealth of Puerto Rico; 
and 
‘‘(D) any other territory or possession of 
the United States. 
‘‘(5) STATE DEPARTMENT OF AGRICULTURE.— 
The term ‘State department of agriculture’ means 
the agency, commission, or department of a State 
government responsible for agriculture in the State. 
‘‘(6) TRIBAL GOVERNMENT.—The term ‘Tribal 
government’ means the governing body of an Indian 
tribe. 
‘‘SEC. 298B. STATE AND TRIBAL PLANS. 
‘‘(a) SUBMISSION.— 
‘‘(1) IN GENERAL.—A State or Indian tribe de-
siring to have primary regulatory authority over the 
production of the raw cannabis in the State or terri-
tory of the Indian tribe shall submit to the Sec-
retary, through the State department of agriculture 
(in consultation with the Governor and chief law en-
forcement officer of the State) or the Tribal govern-
ment, as applicable, a plan under which the State or 
Indian tribe monitors and regulates that production 
as described in paragraph (2). 
‘‘(2) CONTENTS.—A State or Tribal plan re-
ferred to in paragraph (1)— 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(A) shall only be required to include— 
‘‘(i) a practice to maintain relevant in-
formation regarding land on which raw 
cannabis is produced in the State or terri-
tory of the Indian tribe, including a legal 
description of the land, for a period of not 
less than 3 calendar years; 
‘‘(ii) a procedure for the effective dis-
posal of products that are produced in vio-
lation of this subtitle; and 
‘‘(iii) a procedure to comply with the 
enforcement procedures under subsection 
(d); and 
‘‘(B) may include any other practice or 
procedure established by a State or Indian 
tribe, as applicable, to the extent that the prac-
tice or procedure is consistent with this subtitle. 
‘‘(3) RELATION TO STATE AND TRIBAL LAW.— 
‘‘(A) NO
PREEMPTION.—Nothing in this 
subsection preempts or limits any law of a 
State or Indian tribe regulating the production 
of raw cannabis, to the extent that law is con-
sistent with this subtitle. 
‘‘(B) REFERENCES IN PLANS.—A State or 
Tribal plan referred to in paragraph (1) may 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(B) CORRECTIVE ACTION PLAN.—A raw 
cannabis producer described in subparagraph 
(A) shall comply with a plan established by the 
State department of agriculture or Tribal gov-
ernment, as applicable, to correct the negligent 
violation, including— 
‘‘(i) a reasonable date by which the 
raw cannabis producer shall correct the 
negligent violation; and 
‘‘(ii) a requirement that the raw can-
nabis producer shall periodically report to 
the State department of agriculture or 
Tribal government, as applicable, on the 
compliance of the raw cannabis producer 
with the State or Tribal plan for a period 
of not less than the next 2 calendar years. 
‘‘(C) RESULT
OF
NEGLIGENT
VIOLA-
TION.—Except as provided in subparagraph 
(D), a raw cannabis producer that negligently 
violates a State or Tribal plan under subpara-
graph (A) shall not be subject to any criminal 
or civil enforcement action by the Federal Gov-
ernment or any State government, Tribal gov-
ernment, or local government other than the en-
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
forcement action authorized under subpara-
graph (B). 
‘‘(D) REPEAT
VIOLATIONS.—A raw can-
nabis producer that negligently violates a State 
or Tribal plan under subparagraph (A) 3 times 
in a 5-year period shall be ineligible to produce 
raw cannabis for a period of 5 years beginning 
on the date of the third violation. 
‘‘(3) OTHER VIOLATIONS.—If the State depart-
ment of agriculture or Tribal government in a State 
or the territory of an Indian tribe for which a State 
or Tribal plan is approved under subsection (b), as 
applicable, determines that a raw cannabis producer 
in the State or territory has violated the State or 
Tribal plan with a culpable mental state greater 
than negligence— 
‘‘(A) the State department of agriculture 
or Tribal government, as applicable, shall im-
mediately report the raw cannabis producer 
to— 
‘‘(i) the Secretary of Agriculture; and 
‘‘(ii) in the case of a State department 
of agriculture, the chief agricultural official 
of the State; and 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(B) paragraph (1) of this subsection shall 
not apply to the violation. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
‘‘(f) EFFECT.—Nothing in this section prohibits the 
production of raw cannabis in a State or the territory of 
an Indian tribe for which a State or Tribal plan is not 
approved under this section in accordance with other Fed-
eral laws (including regulations). 
‘‘SEC. 298C. DEPARTMENT OF AGRICULTURE PLAN. 
‘‘(a) DEPARTMENT OF AGRICULTURE PLAN.— 
‘‘(1) IN GENERAL.—In the case of a State or 
Indian tribe for which a State or Tribal plan is not 
approved under section 298B, the production of raw 
cannabis in that State or the territory of that Indian 
tribe shall be subject to a plan established by the 
Secretary to monitor and regulate that production in 
accordance with paragraph (2). 
‘‘(2) CONTENT.—A plan established by the Sec-
retary under paragraph (1) shall include— 
‘‘(A) a practice to maintain relevant infor-
mation regarding land on which raw cannabis is 
produced in the State or territory of the Indian 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
tribe, including a legal description of the land, 
for a period of not less than 3 calendar years; 
‘‘(B) a procedure for the effective disposal 
of— 
‘‘(i) plants, whether growing or not, 
that are produced in violation of this sub-
title; and 
‘‘(ii) products derived from those 
plants; 
‘‘(C) a procedure to comply with the en-
forcement procedures under subsection (c)(2); 
‘‘(D) a procedure for conducting annual in-
spections of, at a minimum, a random sample 
of raw cannabis producers to verify that raw 
cannabis is not produced in violation of this 
subtitle; and 
‘‘(E) such other practices or procedures as 
the Secretary considers to be appropriate, to 
the extent that the practice or procedure is con-
sistent with this subtitle. 
‘‘(b) LICENSING.—The Secretary shall establish a 
procedure to issue licenses to raw cannabis producers in 
accordance with a plan established under subsection (a). 
‘‘(c) VIOLATIONS.— 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(1) IN GENERAL.—In the case of a State or 
Indian tribe for which a State or Tribal plan is not 
approved under section 298B, it shall be unlawful to 
produce raw cannabis in that State or the territory 
of that Indian tribe without a license issued by the 
Secretary under subsection (b). 
‘‘(2) NEGLIGENT AND OTHER VIOLATIONS.—A 
violation of a plan established under subsection (a) 
shall be subject to enforcement in accordance with 
paragraphs (2) and (3) of section 298B(d), except 
that the Secretary shall carry out that enforcement 
instead of a State department of agriculture or Trib-
al government. 
‘‘SEC. 298D. AUTHORITY TO ISSUE REGULATIONS AND 
GUIDELINES. 
‘‘(a) The Secretary shall have sole authority to issue 
Federal regulations and guidelines that relate to the pro-
duction of raw cannabis, including Federal regulations 
and guidelines that relate to the implementation of section 
298B. 
‘‘(b) No later than 90 days after enactment, the Sec-
retary of Agriculture shall propose regulations imple-
menting this Act. 
‘‘(c) RIGHT OF ACTION.—An adversely affected per-
son or business shall have private right of action under 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
the Administrative Procedure Act (5 U.S.C. 500 et seq.) 
and the Mandamus Act (28 U.S.C. 1361) to compel the 
Secretary or the designated officer, employee or agent of 
the Department of Agriculture to promulgate regulations 
or undertake and finalize rulemaking required under this 
Act that are not promulgated or published within the time 
frames set forth herein, or to act on applications for the 
permits or licenses herein required, 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 equity, equitable 
relief in the form of a writ of mandamus compelling action 
shall issue, among such other relief as the court may see 
fit.’’. 
(b) FUNDING FOR RAW CANNABIS RESEARCH.— 
(1) 
SUPPLEMENTAL
AND
ALTERNATIVE 
CROPS.—Section 1473D(c)(3)(E) of the National 
Agricultural Research, Extension, and Teaching Pol-
icy Act of 1977 (7 U.S.C. 3319d(c)(3)(E)) is 
amended by striking ‘‘(including hemp (as defined in 
section 297A of the Agricultural Marketing Act of 
1946))’’ and by inserting ‘‘(including hemp and raw 
cannabis (as defined in sections 297A and 298A of 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
the Agricultural Marketing Act of 1946, respec-
tively))’’ after ‘‘material’’. 
(2) CRITICAL
AGRICULTURAL
MATERIALS.— 
Section 5(b)(9) of the Critical Agricultural Materials 
Act (7 U.S.C. 178c(b)(9)) is amended by striking 
‘‘(including hemp (as defined in section 297A of the 
Agricultural Marketing Act of 1946))’’ and by in-
serting ‘‘(including hemp and raw cannabis (as de-
fined in sections 297A and 298A of the Agricultural 
Marketing Act of 1946, respectively))’’ after ‘‘hydro-
carbon-containing plants’’. 
(c) LEGITIMACY OF RAW CANNABIS RESEARCH.— 
(1) IN GENERAL.—Section 7606 of the Agricul-
tural Act of 2014 (7 U.S.C. 5940) is amended— 
(A) in subsection (b), by inserting ‘‘or raw 
cannabis’’ after each appearance of ‘‘hemp’’ in 
subsection (b); and 
(B) by adding at the end the following: 
‘‘(d) RAW CANNABIS STUDY AND REPORT.— 
‘‘(1) IN GENERAL.—The Secretary shall con-
duct a study of agricultural pilot programs to deter-
mine the economic viability of the domestic produc-
tion and sale of raw cannabis. 
‘‘(2) REPORT.—Not later than 120 days after 
the date of enactment of this subsection, the Sec-
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
retary shall submit to Congress a report describing 
the results of the study conducted under paragraph 
(1).’’. 
(d) FEDERAL CROP INSURANCE.— 
(1) DEFINITION OF RAW CANNABIS.—Section 
502(b) of the Federal Crop Insurance Act (7 U.S.C. 
1502(b)) is amended— 
(A) by redesignating paragraphs (10) 
through (14) as paragraphs (11) through (15), 
respectively; and 
(B) by inserting after paragraph (9) the 
following: 
‘‘(9) RAW CANNABIS.—The term ‘raw cannabis’ 
has the meaning given the term in section 298A of 
the Agricultural Marketing Act of 1946.’’. 
(2) INSURANCE PERIOD.—Section 508(a)(2) of 
the 
Federal 
Crop 
Insurance 
Act 
(7 
U.S.C. 
1508(a)(2)) is amended by striking ‘‘sweet potatoes, 
and hemp’’ and inserting ‘‘sweet potatoes, hemp, 
and raw cannabis’’. 
(3) SUBMISSION OF POLICIES AND MATERIALS 
TO BOARD.—Section 508(h) of the Federal Crop In-
surance Act (7 U.S.C. 1508(h)) is amended— 
(A) in paragraph (1)(B)— 
(i) by adding at the end the following: 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(iii) WAIVER FOR RAW CANNABIS.— 
The Corporation may waive the viability 
and 
marketability 
requirement 
under 
clause (i)(I) in the case of a policy or pilot 
program relating to the production of raw 
cannabis.’’; and 
(B) in paragraph (3)(C)— 
(i) by adding at the end the following: 
‘‘(v) in the case of reviewing policies and other mate-
rials relating to the production of raw cannabis, may waive 
the viability and marketability requirement under sub-
paragraph (A)(ii)(I).’’. 
(4) AGRICULTURAL COMMODITY.—Section 518 
of the Federal Crop Insurance Act (7 U.S.C. 1518) 
is amended by inserting ‘‘raw cannabis,’’ before 
‘‘aquacultural species’’. 
(5) RESEARCH
AND
DEVELOPMENT
AUTHOR-
ITY.—Section 522(b) of the Federal Crop Insurance 
Act (7 U.S.C. 1522(b)) is amended— 
(A) in paragraph (2), by adding at the end 
the following: 
‘‘(L) WAIVER FOR RAW CANNABIS.—The 
Board may waive the viability and marketability 
requirements under this paragraph in the case 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
of research and development relating to a policy 
to insure the production of raw cannabis.’’; and 
(B) in paragraph (3)— 
(i) by adding at the end the following: 
‘‘(C) WAIVER FOR RAW CANNABIS.—The 
Corporation may waive the marketability re-
quirement under subparagraph (A) in the case 
of research and development relating to a policy 
to insure the production of raw cannabis.’’. 
(e) SPECIALTY CROP BLOCK GRANTS.—Section 3 of 
the Specialty Crops Competitiveness Act of 2004 (7 
U.S.C. 1621 note; Public Law 108–465) is amended in 
paragraph (1), by inserting ‘‘hemp and raw cannabis (as 
defined in sections 297A and 298A of the Agricultural 
Marketing Act of 1946, respectively)’’ after ‘‘horticulture’’ 
and before ‘‘and’’. 
SEC. 204. ADMINISTRATION LIKE ALCOHOL UNDER TAX 
AND TRADE BUREAU. 
(a) ADDITION OF CANNABIS TO CERTAIN LEGAL AU-
THORITIES RELATING TO INTOXICATING LIQUORS.— 
(1) WILSON ACT.—The Act of August 8, 1890 
(commonly known as the Wilson Act or the Original 
Packages Act; 27 U.S.C. 121), is amended— 
(A) by inserting ‘‘, or cannabis,’’ after ‘‘in-
toxicating liquors or liquids’’; and 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
(B) by striking ‘‘such liquids or liquors’’ 
and inserting ‘‘such liquids, liquors, or can-
nabis’’. 
(2) WEBB-KENYON ACT.—The Act of March 1, 
1913 (commonly known as the Webb-Kenyon Act; 
27 U.S.C. 122), is amended— 
(A) by inserting ‘‘cannabis or any’’ after 
‘‘whatsoever, of any’’; 
(B) by inserting ‘‘cannabis or’’ after 
‘‘which said’’; and 
(C) by adding at the end of section 122b 
the following new subsection: 
‘‘(c) CANNABIS REGULATION.—The Secretary of the 
Treasury, acting through the Alcohol and Tobacco Tax 
and Trade Bureau of the Department of the Treasury 
shall have primary authority regarding Federal regulation 
of the interstate and international trade in, and pro-
motion, sale, and distribution of, cannabis products. 
‘‘(1) The Secretary shall, not later than 6 
months after the enactment of this Act, publish an 
interim final rule in accordance with the Administra-
tive Procedure Act (5 U.S.C. 500 et seq.) regarding 
the promotion, sale, and distribution of cannabis 
products. No later than 9 months after the enact-
ment of this Act, the Secretary shall finalize and 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
publish, as a final rule, regulations regarding the 
promotion, sale, and distribution of cannabis prod-
ucts. 
‘‘(2) The Secretary shall expeditiously develop 
and implement a track-and-trace system for can-
nabis in interstate commerce. 
‘‘(3) Not later than 1 year after the date of en-
actment of this Act the Secretary shall publish an 
interim final rule, and not later than 2 years after 
such date of enactment the Secretary shall finalize 
regulations regarding the promotion, sale, and dis-
tribution of cannabis products that occur through 
means other than a direct, face-to-face exchange be-
tween a retailer and a consumer, in order to prevent 
the sale and distribution of cannabis products to in-
dividuals who have not attained the age of 21, in-
cluding requirements for age verification. 
‘‘(d) RULE OF CONSTRUCTION.—It is the intention 
of Congress that this Act be read consistently with the 
jurisprudence interpreting the Acts amended above and 
not as superseding or changing prior construction of the 
Acts with respect to the laws of the United States gen-
erally or the article I Commerce Clause.’’. 
(3) VICTIMS OF TRAFFICKING AND VIOLENCE 
PROTECTION ACT OF 2000.—Section 2 of the Victims 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
of Trafficking and Violence Protection Act of 2000 
(27 U.S.C. 122a) is amended— 
(A) in subsection (a)— 
(i) by redesignating paragraphs (3) 
and (4) as paragraphs (4) and (5), respec-
tively; and 
(ii) by inserting after paragraph (2) 
the following new paragraph: 
‘‘(3) the term ‘marijuana’ has the meaning 
given the term ‘marihuana’ in section 102 of the 
Controlled Substances Act (21 U.S.C. 802);’’; and 
(B) in subsections (b) and (c), by inserting 
‘‘or marijuana’’ after ‘‘intoxicating liquor’’ each 
place it appears. 
SEC. 205. TRANSFERRING AGENCY FUNCTIONS WITH RE-
GARD TO MARIJUANA. 
(a) TRANSFER OF JURISDICTION FROM DRUG EN-
FORCEMENT ADMINISTRATION TO BUREAU OF ALCOHOL, 
TOBACCO, FIREARMS AND EXPLOSIVES.—The functions 
of the Attorney General, acting through the Administrator 
of the Drug Enforcement Administration relating to can-
nabis enforcement, shall hereafter be administered by the 
Attorney General, acting through the Director of the Bu-
reau of Alcohol, Tobacco, Firearms and Explosives. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
(b) REDESIGNATION OF BUREAU OF ALCOHOL, TO-
BACCO, FIREARMS AND EXPLOSIVES AS BUREAU OF AL-
COHOL, TOBACCO, CANNABIS, FIREARMS
AND EXPLO-
SIVES.— 
(1) REDESIGNATION.—The Bureau of Alcohol, 
Tobacco, Firearms and Explosives is hereby re-
named the ‘‘Bureau of Alcohol, Tobacco, Cannabis, 
Firearms and Explosives’’. 
(2) REFERENCES.—Any reference to the Bu-
reau of Alcohol, Tobacco, Firearms and Explosives 
in any law, regulation, map, document, record, or 
other paper of the United States shall be deemed to 
be a reference to the Bureau of Alcohol, Tobacco, 
Cannabis, Firearms and Explosives. 
(c) REDESIGNATION
OF ALCOHOL
AND TOBACCO 
TAX AND TRADE BUREAU AS ALCOHOL, TOBACCO, AND 
CANNABIS TAX AND TRADE BUREAU.— 
(1) REDESIGNATION.—Section 1111(d) of the 
Homeland Security Act of 2002 (6 U.S.C. 531(d)) 
is amended by striking ‘‘Tax and Trade Bureau’’ 
each place it appears and inserting ‘‘Alcohol, To-
bacco, and Cannabis Tax and Trade Bureau’’. 
(2) REFERENCES.—Any reference to the Tax 
and Trade Bureau or the Alcohol and Tobacco Tax 
and Trade Bureau in any law, regulation, map, doc-
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
ument, record, or other paper of the United States 
shall be deemed to be a reference to the Alcohol, To-
bacco, and Cannabis Tax and Trade Bureau. 
SEC. 206. TRANSITION SAFE HARBOR AND ADMINISTRA-
TIVE REMEDIES. 
(a) SAFE HARBOR.—No person shall be deemed to 
be in violation of this Act for engaging in interstate com-
merce in cannabis products or designated State medical 
cannabis products, possessing cannabis products or des-
ignated State medical cannabis products, producing or 
manufacturing cannabis products or designated State 
medical cannabis products, or farming raw cannabis, until 
after the Secretary of the Treasury promulgates final reg-
ulations in accordance with this Act. Nothing in this sec-
tion shall be construed to impact in any respect obligations 
of any person to comply with otherwise applicable can-
nabis laws of the State, Territory, or Possession of the 
United States in which they are doing business before the 
effective date of this Act. 
(b) PRIVATE RIGHT OF ACTION.—Any State-licensed 
cannabis business or adversely affected person 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 any officer, employee or agency 
of the United States to promulgate regulations required 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
under this Act that are not promulgated 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 dem-
onstration of undue delay or failure to adhere strictly to 
statutory deadlines, equitable relief in the form of a writ 
of mandamus compelling action shall issue, among such 
other relief as the court may see fit. 
(c) The term ‘‘State’’ as used in this section 206 in-
cludes the District of Columbia, Puerto Rico, and any 
commonwealth, territory, enclave, or Indian tribe of the 
United States. 
SEC. 207. UNFAIR ADVERTISING PRACTICES AND 21 AGE 
LIMIT. 
(a) IN GENERAL.—It shall be unlawful for any per-
son engaged in the business of importing marijuana into 
the United States, or cultivating, producing, manufac-
turing, packaging, or warehousing marijuana, or pur-
chasing marijuana for resale at wholesale, directly or indi-
rectly or through an affiliate, to publish or disseminate 
or cause to be published or disseminated by radio broad-
cast, or in any newspaper, periodical or other publication 
or by any sign or outdoor advertisement or any other 
printed or graphic matter, any advertisement of mari-
juana, if such advertisement is in, or is calculated to in-
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
duce sales in, interstate or foreign commerce, or is dis-
seminated by mail, unless such advertisement is in con-
formity with such regulations, to be prescribed by the Sec-
retary of the Treasury, or the Secretary’s delegate (re-
ferred to in this section as the ‘‘Secretary’’), as will— 
(1) prevent deception of the consumer with re-
spect to the products advertised and as will prohibit, 
irrespective of falsity, such statements relating to 
manufacturing processes, analyses, guaranties, and 
scientific or irrelevant matters as the Secretary finds 
to be likely to mislead the consumer; 
(2) provide the consumer with adequate infor-
mation as to the identity and quality of the products 
advertised, the characteristics thereof, and the per-
son responsible for the advertisement; 
(3) prohibit statements that are disparaging of 
a competitor’s products or are false, misleading, ob-
scene, or indecent; and 
(4) prevent statements inconsistent with any 
statement on the labeling of the products advertised. 
(b) NONAPPLICATION TO PUBLISHERS AND BROAD-
CASTERS.—The prohibitions of this section and regula-
tions thereunder shall not apply to the publisher of any 
newspaper, periodical, or other publication, or radio broad-
caster, or provider of an interactive computer service with-
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
in the meaning of the Communications Decency Act (47 
U.S.C. 230 et seq.), unless such publisher or radio broad-
caster is engaged in the business of importing marijuana 
into the United States, or cultivating, producing, manufac-
turing, packaging, or warehousing marijuana, or pur-
chasing marijuana for resale at wholesale, directly or indi-
rectly or through an affiliate. 
(c) PROTECT KIDS.—Not later than 60 days after the 
date of enactment of this Act, the Secretary of the Treas-
ury shall promulgate regulations that— 
(1) require restrictions on the advertising and 
promotion of products related to cannabis, if the 
Secretary determines that such regulation would be 
appropriate for the protection of the public health, 
taking into account— 
(A) the risks and benefits to the popu-
lation of individuals age 21 and under, includ-
ing users and nonusers of cannabis products; 
(B) the increased or decreased likelihood 
that existing users of cannabis products who 
are age 18 and under will stop using such prod-
ucts; and 
(C) the increased or decreased likelihood 
that individuals age 21 and under who do not 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
use cannabis products will start using such 
products; and 
(2) impose restrictions on the advertising and 
promotion of products related to cannabis consistent 
with and to the full extent permitted by the First 
Amendment to the Constitution of the United 
States. 
(d) NATIONAL MINIMUM CANNABIS USE AGE OF 
21.— 
(1) ESTABLISHMENT
OF
FEDERAL
MINIMUM 
CANNABIS AGE.—Chapter 1 of title 23 of the United 
States Code, is amended by adding at the end the 
following— 
‘‘(a) WITHHOLDING
OF FUNDS
FOR NONCOMPLI-
ANCE.— 
‘‘(1) IN GENERAL.— 
‘‘(A) The Secretary of Transportation shall 
withhold 8 per centum of the amount required 
to be apportioned to any State under each of 
sections 104(b)(1), 104(b)(3), and 104(b)(4) of 
title 23 of the United States Code on the first 
day of each fiscal year after the second fiscal 
year beginning after September 30, 2019, in 
which the purchase or public possession in such 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
State of cannabis by a person who is less than 
twenty-one years of age is lawful. 
‘‘(B) 
EFFECT
OF
WITHHOLDING
OF 
FUNDS.—No funds withheld under this section 
from apportionment to any State after Sep-
tember 30, 2019, shall be available for appor-
tionment to that State. 
‘‘(C) CANNABIS DEFINED.—As used in this 
section, the term ‘cannabis’ means the same as 
‘marihuana’ as defined in 21 U.S.C. 802(16). 
‘‘(D) MEDICAL
EXCEPTION.—The Sec-
retary shall not apply any withholding under 
this section to States that lawfully permit the 
use of designated State medical cannabis prod-
ucts, within the meaning of part J of sub-
chapter V of chapter 9 of title 21 of the United 
States Code (the Federal Food, Drug, and Cos-
metic Act), by persons under the age of 21 on 
the recommendation or prescription of a quali-
fied medical professional consistent with State 
law.’’. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
SEC. 208. FEDERAL CANNABIS ADMINISTRATION UNDER 
THE FEDERAL ALCOHOL ADMINISTRATION 
ACT. 
The Federal Alcohol Administration Act (27 U.S.C. 
201 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘TITLE III—CANNABIS 
‘‘Sec. 301. Unlawful business without cannabis permit. 
‘‘Sec. 302. Procedure for issuance of cannabis permit. 
‘‘Sec. 304. Definitions. 
‘‘SEC. 301. UNLAWFUL BUSINESS WITHOUT CANNABIS PER-
MIT. 
‘‘In order to regulate effectively interstate and for-
eign commerce in cannabis and to protect the revenue and 
enforce the postal laws with respect to cannabis: 
‘‘(a) IN GENERAL.—Notwithstanding section 205 of 
the States Reform Act, every person, before commencing 
commerce in cannabis, and at such other time as the Sec-
retary shall by regulation prescribe, shall make application 
for the permit provided for in section 302. 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. 
‘‘(b) IMPORT.—It shall be unlawful, except pursuant 
to a permit issued under this title by the Secretary of the 
Treasury (hereinafter in this title referred to as the ‘Sec-
retary’)— 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(1) to engage in the business of importing 
cannabis into the United States; or 
‘‘(2) for any person so engaged to sell, offer or 
deliver for sale, contract to sell, or ship, in interstate 
or foreign commerce, directly or indirectly or 
through an affiliate, cannabis so imported. 
‘‘(c) MANUFACTURE AND SALE.—It shall be unlaw-
ful, except pursuant to a permit issued under this title 
by the Secretary— 
‘‘(1) to engage in the business of producing, 
manufacturing, packaging, or warehousing cannabis; 
or 
‘‘(2) for any person so engaged to sell, offer or 
deliver for sale, contract to sell, or ship, in interstate 
or foreign commerce, directly or indirectly or 
through an affiliate, cannabis so produced, manufac-
tured, packaged, or warehoused. 
‘‘(d) RESALE.—It shall be unlawful, except pursuant 
to a permit issued under this title by the Secretary— 
‘‘(1) to engage in the business of purchasing 
cannabis for resale at wholesale; or 
‘‘(2) for any person so engaged to receive or to 
sell, offer or deliver for sale, contract to sell, or ship, 
in interstate or foreign commerce, directly or indi-
rectly or through an affiliate, cannabis so purchased. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(e) REMEDIES FOR VIOLATIONS.— 
‘‘(1) CIVIL FINE.— 
‘‘(A) GENERALLY.—Whoever violates this 
section shall be fined not more than $1,000. 
‘‘(B) SETTLEMENT IN COMPROMISE.—The 
Secretary may decide not to refer a violation of 
this section to the Attorney General for pros-
ecution but instead to collect a payment from 
the violator of no more than $500 for that vio-
lation. 
‘‘(2) CIVIL ACTION FOR RELIEF.—The Attorney 
General may, in a civil action, obtain appropriate re-
lief to prevent and restrain a violation of this title. 
‘‘SEC. 302. PROCEDURE FOR ISSUANCE OF CANNABIS PER-
MIT. 
‘‘(a) WHO ENTITLED TO PERMIT.— 
‘‘(1) GENERALLY.—The Secretary shall issue a 
permit for operations requiring a permit under Sec-
tion 301, and the applicant shall be entitled to such, 
unless the Secretary finds that— 
‘‘(A) the applicant (or if the applicant is a 
corporation, any of its officers, directors, or 
principal stockholders) has, prior to the date of 
application, been convicted of a disqualifying of-
fense; 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(B) the applicant is, by reason of busi-
ness experience, financial standing, or trade 
connections, not likely to commence operations 
within a reasonable period or to maintain such 
operations in conformity with Federal law; 
‘‘(C) that the operations proposed to be 
conducted by the applicant are in violation of 
the law of the State in which they are to be 
conducted; or 
‘‘(D) the applicant has failed to disclose 
any material information required or made any 
material false statement in the application 
therefor. 
‘‘(2) DISQUALIFYING OFFENSES.—For the pur-
poses of paragraph (1)— 
‘‘(A) GENERALLY.—Except as provided for 
in subparagraph (B), a disqualifying offense is 
an offense related to the production, consump-
tion, or sale of marijuana that is— 
‘‘(i) a felony under Federal or State 
law, if the conviction occurred not later 
than 3 years before the date of application; 
or 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(ii) a misdemeanor under Federal or 
State law, if the conviction occurred not 
later than 1 year before the application. 
‘‘(B) EXCLUDED OFFENSES.—A disquali-
fying offense does not include a Federal or 
State offense based on conduct that— 
‘‘(i) was legal under State law in the 
State when and where the conduct took 
place; 
‘‘(ii) is as of the date of the applica-
tion, no longer an offense in that State; or 
‘‘(iii) STATE SECOND CHANCES PRAC-
TICES SAFE HARBOR.—A State has exam-
ined the offense or offenses in question, or 
is in the process of examining, for the 
issuance of a State license to engage in 
cannabis commerce, and has awarded the 
applicant a State license to engage in can-
nabis commerce. 
‘‘(3) GRANDFATHERING
AND
PROSPECTIVE 
COMITY FOR STATE LICENSURE.— 
‘‘(A) GRANDFATHERING.—Any person li-
censed by a State cannabis regulatory authority 
before the passage of this Act to produce, ware-
house, distribute or otherwise transport can-
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
nabis products, and in good standing with that 
regulatory authority, shall be issued necessary 
Federal permits, licenses, or the like to engage 
in federally regulated commerce upon applica-
tion for the same to the Alcohol and Tobacco 
Tax and Trade Bureau of the Department of 
the Treasury. 
‘‘(B) PROSPECTIVE FEDERAL-STATE PER-
MIT COMITY.—Any person licensed by a State 
cannabis regulatory authority after the passage 
of this Act to produce, warehouse, distribute or 
otherwise transport cannabis products, and in 
good standing with that regulatory authority 
shall be issued necessary Federal permits to en-
gage in federally regulated commerce upon ap-
plication for the same. 
‘‘(C) RULE OF CONSTRUCTION.—Nothing 
in this Act, or the lawful exercise of rights or 
privileges granted herein, shall be construed to 
infringe upon or prejudice the ability of a State- 
licensed cannabis business to apply for a permit 
to engage in interstate or foreign commerce. 
‘‘(b) REFUSAL OF PERMIT; HEARING.—If upon ex-
amination of any application for a permit the Secretary 
has reason to believe that the applicant is not entitled to 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
such permit, the Secretary shall so notify the applicant 
and, upon request by the applicant, afford the applicant 
due notice and opportunity for hearing on the application 
within the meaning of the Administrative Procedure Act 
(5 U.S.C. 500 et seq.). If the Secretary, after affording 
such notice and opportunity for hearing, still finds that 
the applicant is not entitled to a permit hereunder, the 
Secretary shall by order deny the application stating the 
findings that are the basis for the order. The provisions 
of 27 CFR part 200—Rules of Practice in Permit Pro-
ceedings, as amended from time to time, shall be applica-
ble to the jurisdiction, powers, and duties of the Secretary 
of the Treasury under this section. 
‘‘(c) FORM OF APPLICATION.— 
‘‘(1) GENERALLY.—The Secretary shall— 
‘‘(A) prescribe within 60 days of the effec-
tive date of this Act, and consistent with the 
Paperwork Reduction Act, the manner and 
form of all applications for permits under this 
title (including the facts to be set forth there-
in); 
‘‘(B) prescribe the form of all permits; and 
‘‘(C) specify in any permit the authority 
conferred by the permit and the conditions of 
that permit in accordance with this title. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(2) SEPARATE TYPES OF APPLICATIONS AND 
PERMITS.—To the extent deemed necessary by the 
Secretary for the efficient administration of this 
title, the Secretary may require separate applications 
and permits with respect to the various classes of 
cannabis, and with respect to the various classes of 
persons entitled to permits under this title. 
‘‘(3) DISCLAIMER.—The issuance of a permit 
under this title does not deprive the United States 
of any remedy for a violation of law. 
‘‘(d) CONDITIONS.—A permit under this title shall be 
conditioned upon the following: 
‘‘(1) COMPLIANCE.—Compliance with all appli-
cable Federal laws relating to production, sale and 
consumption of cannabis, as well as compliance with 
all applicable State laws relating to said activities in 
the State in which the permit applicant resides and 
does business. 
‘‘(2) USER FEE.—Payment to the Secretary of 
a reasonable permit fee in an amount determined by 
the Secretary to be sufficient collectively over time 
to offset the cost of implementing and overseeing all 
aspects of cannabis regulation by the Federal Gov-
ernment. For the first 3 years following promulga-
tion of regulations by the Secretary under section 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
204 of the States Reform Act, in order to ensure 
small business access, such fee may not exceed 
$10,000 per permit. 
‘‘(A) SBA FEE
WAIVER.—The Secretary 
shall waive the user fee for an applicant that is 
a small business or a socially and economically 
disadvantaged business that is a business with-
in the meaning of the Small Business Act of 
1953 (15 U.S.C. chapter 14A), as interpreted 
by the Administrator of the Small Business Ad-
ministration. 
‘‘(e) REVOCATION, SUSPENSION, 
AND
ANNUL-
MENT.— 
‘‘(1) GENERALLY.—After due notice and oppor-
tunity for hearing consistent with the Administrative 
Procedure Act (5 U.S.C. 500 et seq.), the Secretary 
may order a permit under this title— 
‘‘(A) revoked or suspended for such period 
as the Secretary deems appropriate, if the Sec-
retary finds that the permittee has willfully vio-
lated any of the conditions of the permit, but 
for a first violation of the conditions the permit 
shall be subject to suspension only; 
‘‘(B) be revoked if the Secretary finds that 
the permittee has not engaged in the operations 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
authorized by the permit for a period of more 
than 2 years; or 
‘‘(C) be annulled if the Secretary finds 
that the permit was procured through fraud, or 
misrepresentation, or concealment of material 
fact. 
‘‘(2) ORDER TO STATE BASIS FOR ORDER.— 
The order shall state the findings that are the basis 
for the order. 
‘‘(f) SERVICE OF ORDERS.—Each order of the Sec-
retary with respect to any denial of application, suspen-
sion, revocation, annulment, or other proceedings, shall be 
served— 
‘‘(1) in person by any officer or employee of the 
Secretary designated by the Secretary or any inter-
nal revenue or customs officer authorized by the 
Secretary for the purpose; or 
‘‘(2) by mailing the order by registered mail, 
addressed to the applicant or respondent at his or 
her last known address in the records of the Sec-
retary. 
‘‘(g) PROCEEDINGS.—The provisions of 27 CFR part 
200—Rules of Practice in Permit Proceedings, as amend-
ed from time to time, shall be applicable to the jurisdic-
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
tion, powers, and duties of the Secretary of the Treasury 
under this section. 
‘‘(h) DURATION.— 
‘‘(1) GENERAL
RULE.—Except as otherwise 
provided in this subsection, a permit issued under 
this title shall continue in effect until suspended, re-
voked, or annulled as provided in this title, or volun-
tarily surrendered. 
‘‘(2) EFFECT
OF
TRANSFER.—If operations 
under a permit issued under this title are trans-
ferred, the permit automatically terminates 30 days 
after the date of that transfer, unless an application 
is made by the transferee before the end of that pe-
riod for a permit under this title for those oper-
ations. If such an application is made, the out-
standing permit shall continue in effect until such 
application is finally acted on by the Secretary. 
‘‘(3) DEFINITION OF TRANSFER.—For the pur-
poses of this section, the term ‘transfer’ means any 
change of ownership or control, whether voluntary or 
by operation of law. 
‘‘(i) APPEAL AND JUDICIAL REVIEW.— 
‘‘(1) IN GENERAL.—An appeal may be taken by 
the permittee or applicant for a permit from any 
order of the Secretary of the Treasury denying an 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
application for, or suspending, revoking, or annul-
ling, a basic permit. Such appeal shall be taken by 
filing, in the court of appeals of the United States 
within any circuit wherein such person resides or 
has his or her principal place of business, or in the 
United States Court of Appeals for the District of 
Columbia, within sixty days after the entry of such 
order, a written petition praying that the order of 
the Secretary be modified or set aside in whole or 
in part. A copy of such petition shall be forthwith 
transmitted by the clerk of the court to the Sec-
retary, or any officer designated by the Secretary for 
that purpose, and thereupon the Secretary shall file 
in the court the record upon which the order com-
plained of was entered, as provided in section 2112 
of title 28. Upon the filing of such petition such 
court shall have exclusive jurisdiction to affirm, 
modify, or set aside such order, in whole or in part. 
No objection to the order of the Secretary shall be 
considered by the court unless such objection shall 
have been urged before the Secretary or unless there 
were reasonable grounds for failure so to do. The 
finding of the Secretary as to the facts, if supported 
by substantial evidence, shall be conclusive. If any 
party shall apply to the court for leave to adduce ad-
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
ditional evidence, and shall show to the satisfaction 
of the court that such additional evidence is material 
and that there were reasonable grounds for failure 
to adduce such evidence in the proceeding before the 
Secretary, the court may order such additional evi-
dence to be taken before the Secretary and to be ad-
duced upon the hearing in such manner and upon 
such terms and conditions as to the court may seem 
proper. The Secretary may modify his or her find-
ings as to the facts by reason of the additional evi-
dence so taken, and he or she shall file with the 
court such modified or new findings, which, if sup-
ported by substantial evidence, shall be conclusive, 
and his or her recommendation, if any, for the modi-
fication or setting aside of the original order. The 
judgment and decree of the court affirming, modi-
fying, or setting aside, in whole or in part, any such 
order of the Secretary shall be final, subject to re-
view by the Supreme Court of the United States 
upon certiorari or certification as provided in section 
1254 of title 28. The commencement of proceedings 
under this subsection shall, unless specifically or-
dered by the court to the contrary, operate as a stay 
of the Secretary’s order. These proceedings shall be 
subject to the requirements of the Administrative 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
Procedure Act (5 U.S.C. 500 et seq.). Should the 
permitee substantially prevail, such permitee shall be 
entitled to attorneys’ fees and costs associated with 
compelling a decision under this section. 
‘‘(2) ADDITIONAL APPLICANT MANDAMUS REM-
EDY.—Should the Secretary fail to make a permit 
application decision within ninety days of submission 
of a completed application, an applicant shall have 
the right to compel a decision and issuance of a per-
mit pursuant to 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 compel-
ling a decision under this section. Such mandamus 
remedy shall be in addition to any other remedies 
available to applicants under the Administrative Pro-
cedure Act. 
‘‘(j) STATUTE OF LIMITATIONS.— 
‘‘(1) IN GENERAL.—No proceeding for the sus-
pension or revocation of a permit for violation of any 
condition thereof relating to compliance with Federal 
law shall be instituted by the Secretary more than 
18 months after conviction of the violation of Fed-
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
eral law, or, if no conviction has been had, more 
than 3 years after the violation occurred. 
‘‘(2) COMPROMISE.—No permit shall be sus-
pended or revoked for a violation of any such condi-
tion thereof if the alleged violation of Federal law 
has been compromised by any officer of the Govern-
ment authorized to compromise such violation. 
‘‘(k) PERMIT APPLICATION.— 
‘‘(1) IN GENERAL.—Applications for permits to 
engage in any of the operations set forth in this sec-
tion must be made on the required form. The appli-
cation will include all data, written statements, affi-
davits, documents, or other evidence submitted in 
support of the application, or upon a hearing. 
‘‘(2) CONFIDENTIALITY.—All financial informa-
tion submitted by a permit applicant in connection 
with an application shall be deemed confidential 
business information and exempt from disclosure 
under the Freedom of Information Act. 
‘‘(3) INCOMPLETE OR INCORRECTLY EXECUTED 
APPLICATIONS.—Incomplete or incorrectly executed 
applications will not be acted upon, but the applicant 
shall be entitled to file a new application without 
prejudice, or to complete the application already 
filed. The Secretary shall notify the applicant of 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
such defects in the application within 90 days of ap-
plication or within ten days of the discovery of the 
defect after the first 30 days following the filing of 
the application. 
‘‘(4) CHANGE
IN
OWNERSHIP, MANAGEMENT, 
OR CONTROL OF THE APPLICANT.—In the event of 
any change in the ownership, management, or con-
trol of the applicant (in case of a corporation, any 
change in the officers, directors, or persons holding 
more than 10 percent of the corporate stock), after 
the date of filing of any application for a permit and 
prior to final action on such application, the appli-
cant shall notify the appropriate officer immediately 
of such change. 
‘‘(5) INDIVIDUAL PLANT OR PREMISES.—An ap-
plication for a basic permit must be filed, and per-
mit issued, to cover each individual plant or prem-
ises where any of the businesses specified in this sec-
tion is engaged in. 
‘‘(6) DEADLINE.—Within 90 days of receipt of 
an application, the Secretary or his or her designee 
must notify the applicant whether the application 
has been approved or denied. This 90-day period 
may be extended once, by an additional 90 days, if 
the Secretary or his or her designee finds that un-
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
usual circumstances require additional time to con-
sider the issues presented by an application. If the 
Secretary or the appropriate designee extends the 
period, he or she must notify the applicant by letter, 
along with a brief explanation of the unusual cir-
cumstances causing the time period for consideration 
of the application to be extended. If the applicant re-
ceives no decision from the Secretary or his or her 
designee within the time periods set forth in this 
paragraph, the applicant may file a mandamus ac-
tion as provided for in this section. 
‘‘SEC. 304. DEFINITIONS. 
‘‘In this title— 
‘‘(1) the term ‘marijuana’ or ‘cannabis’ has the 
same meaning given the term ‘marihuana’ in section 
102 of the Controlled Substances Act (21 U.S.C. 
121); and 
‘‘(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.’’. 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
TITLE III—DESIGNATED STATE 
MEDICAL 
CANNABIS 
PROD-
UCT SAFETY ACT 
SEC. 301. GRANDFATHERING OF STATE MEDICAL CANNABIS 
PRODUCTS INTO INTERSTATE COMMERCE. 
Subchapter V of chapter 9 of title 21 of the United 
States Code (the Federal Food, Drug, and Cosmetic Act) 
is amended by adding at the end the following new part: 
‘‘PART J—DESIGNATED STATE MEDICAL 
CANNABIS PRODUCTS 
‘‘Sec. 360ggg. Definitions. 
‘‘Sec. 360ggg–1. Regulation of medical cannabis products. 
‘‘Sec. 360ggg–2. Cannabis-infused foods, beverages, and supplements. 
‘‘Sec. 360ggg–3. Cannabis cosmetics. 
‘‘Sec. 360ggg–4. Liability and method of payment. 
‘‘Sec. 360ggg–5. Private right of action and administrative remedy. 
‘‘SEC. 360ggg. DEFINITIONS. 
‘‘In this part: 
‘‘(1) The term ‘designated State medical can-
nabis product’— 
‘‘(A) means an article that is produced by 
a State and federally licensed or permitted med-
ical cannabis business, pursuant to a State 
medical cannabis program and contains ‘mari-
huana’, as defined in section 102(16) of the 
Controlled Substances Act; 
‘‘(B) means any other article that contains 
either ‘marihuana’, as defined in section 102 of 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
the Controlled Substances Act, 21 U.S.C. 802, 
deemed appropriate by the Secretary, after tak-
ing into account any investigational new drug 
application or investigational new animal drug 
application for the same medical cannabis prod-
uct submitted in accordance with regulations 
applicable to such applications in title 21 of the 
Code of Federal Regulations, unless any period 
of exclusivity for a new drug under section 
355(c)(3)(E)(ii) 
of 
this 
title 
or 
section 
355(j)(5)(F)(ii) of this title, or the extension of 
any such period under section 355a of this title, 
or any period of exclusivity for a new animal 
drug under section 360b(c)(2)(F) of this title, 
applicable to such medical cannabis product has 
not expired; 
‘‘(C) means any article that contains either 
‘marihuana’, as defined in section 102(16) of 
the Controlled Substances Act, 21 U.S.C. 
802(16) that also meets the standards set forth 
in an official compendium; and 
‘‘(D) does not mean articles or cannabis 
products produced and intended for nonmedical 
use, such as those regulated under title III of 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(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 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 
VerDate Sep 11 2014 
01:10 Dec 22, 2021
Jkt 029200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6201
E:\BILLS\H5977.IH
H5977
pbinns on DSKJLVW7X2PROD with BILLS