‘‘(c) INFORMATION REPORTING.—The Secretary may 
require— 
‘‘(1) information reporting by any person issued 
a permit under this section, and 
‘‘(2) information reporting by such other per-
sons as the Secretary deems necessary to carry out 
this chapter. 
‘‘(d) INSPECTION
OR DISCLOSURE
OF INFORMA-
TION.—For rules relating to inspection and disclosure of 
returns and return information, see section 6103(o). 
‘‘Subchapter D—Operations 
‘‘Sec. 5931. Inventories, reports, and records. 
‘‘Sec. 5932. Packaging and labeling. 
‘‘Sec. 5933. Purchase, receipt, possession, or sale of marijuana products after 
removal. 
‘‘Sec. 5934. Restrictions relating to marks, labels, notices, and packages. 
‘‘Sec. 5935. Restriction on importation of previously exported marijuana prod-
ucts. 
‘‘SEC. 5931. INVENTORIES, REPORTS, AND RECORDS. 
‘‘Every producer, importer, and export warehouse 
proprietor shall— 
‘‘(1) make a true and accurate inventory at the 
time of commencing business, at the time of con-
cluding business, and at such other times, in such 
manner and form, and to include such items, as the 
Secretary shall by regulation prescribe, with such in-
ventories to be subject to verification by any internal 
revenue officer, 
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‘‘(2) make reports containing such information, 
in such form, at such times, and for such periods as 
the Secretary shall by regulation prescribe, and 
‘‘(3) keep such records in such manner as the 
Secretary shall by regulation prescribe, with such 
records to be available for inspection by any internal 
revenue officer during business hours. 
‘‘SEC. 5932. PACKAGING AND LABELING. 
‘‘(a) PACKAGES.—All marijuana products shall, be-
fore removal, be put up in such packages as the Secretary 
shall by regulation prescribe. 
‘‘(b) MARKS, LABELS, AND NOTICES.—Every pack-
age of marijuana products shall, before removal, bear the 
marks, labels, and notices if any, that the Secretary by 
regulation prescribes. 
‘‘(c) LOTTERY FEATURES.—No certificate, coupon, 
or other device purporting to be or to represent a ticket, 
chance, share, or an interest in, or dependent on, the event 
of a lottery shall be contained in, attached to, or stamped, 
marked, written, or printed on any package of marijuana 
products. 
‘‘(d) INDECENT OR IMMORAL MATERIAL PROHIB-
ITED.—No indecent or immoral picture, print, or rep-
resentation shall be contained in, attached to, or stamped, 
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marked, written, or printed on any package of marijuana 
products. 
‘‘(e) EXCEPTIONS.—Subject to regulations prescribed 
by the Secretary, marijuana products may be exempted 
from subsections (a) and (b) if such products are— 
‘‘(1) for experimental purposes, or 
‘‘(2) transferred to the bonded premises of an-
other producer or export warehouse proprietor or re-
leased in bond from customs custody for delivery to 
a producer. 
‘‘SEC. 5933. PURCHASE, RECEIPT, POSSESSION, OR SALE OF 
MARIJUANA 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 marijuana 
products— 
‘‘(A) upon which the tax has not been paid 
or determined in the manner and at the time 
prescribed by this chapter or regulations there-
under, or 
‘‘(B) which, after removal without payment 
of tax pursuant to section 5904, have been di-
verted from the applicable purpose or use speci-
fied in that section, 
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‘‘(2) with intent to defraud the United States, 
purchase, receive, possess, offer for sale, or sell or 
otherwise dispose of, after removal, any marijuana 
products which are not put up in packages as re-
quired under section 5932 or which are put up in 
packages not bearing the marks, labels, and notices, 
as required under such section, or 
‘‘(3) otherwise than with intent to defraud the 
United States, purchase, receive, possess, offer for 
sale, or sell or otherwise dispose of, after removal, 
any marijuana products which are not put up in 
packages as required under section 5932 or which 
are put up in packages not bearing the marks, la-
bels, and notices, as required under such section. 
‘‘(b) EXCEPTION.—Paragraph (3) of subsection (a) 
shall not prevent the sale or delivery of marijuana prod-
ucts directly to consumers from proper packages, nor 
apply to such articles when so sold or delivered. 
‘‘(c) LIABILITY TO TAX.—Any person who possesses 
marijuana products in violation of paragraph (1) or (2) 
of subsection (a) shall be liable for a tax equal to the tax 
on such articles. 
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‘‘SEC. 5934. RESTRICTIONS RELATING TO MARKS, LABELS, 
NOTICES, AND PACKAGES. 
‘‘No person shall, with intent to defraud the United 
States, destroy, obliterate, or detach any mark, label, or 
notice prescribed or authorized, by this chapter or regula-
tions thereunder, to appear on, or be affixed to, any pack-
age of marijuana products before such package is emptied. 
‘‘SEC. 5935. RESTRICTION ON IMPORTATION OF PRE-
VIOUSLY EXPORTED MARIJUANA PRODUCTS. 
‘‘(a) EXPORT LABELED MARIJUANA PRODUCTS.— 
‘‘(1) IN
GENERAL.—Marijuana 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 
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‘‘(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-
ducer into new packaging that does not contain 
an export label. 
‘‘(2) ALTERATIONS BY PERSONS OTHER THAN 
ORIGINAL PRODUCER.—This section shall apply to 
articles labeled for export even if the packaging or 
the appearance of such packaging to the consumer 
of such articles has been modified or altered by a 
person other than the original producer so as to re-
move or conceal or attempt to remove or conceal (in-
cluding by the placement of a sticker over) any ex-
port label. 
‘‘(3) EXPORTS INCLUDE SHIPMENTS TO PUER-
TO
RICO.—For purposes of this section, section 
5904(d), section 5941, and such other provisions as 
the Secretary may specify by regulations, references 
to exportation shall be treated as including a ref-
erence to shipment to the Commonwealth of Puerto 
Rico. 
‘‘(b) EXPORT LABEL.—For purposes of this section, 
an article is labeled for export or contains an export label 
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if it bears the mark, label, or notice required under section 
5904(b). 
‘‘Subchapter E—Penalties 
‘‘Sec. 5941. Civil penalties. 
‘‘Sec. 5942. Criminal penalties. 
‘‘SEC. 5941. CIVIL PENALTIES. 
‘‘(a) OMITTING
THINGS
REQUIRED
OR
DOING 
THINGS FORBIDDEN.—Whoever willfully omits, neglects, 
or refuses to comply with any duty imposed upon them 
by this chapter, or to do, or cause to be done, any of the 
things required by this chapter, or does anything prohib-
ited by this chapter, shall in addition to any other penalty 
provided in this title, be liable to a penalty of $10,000, 
to be recovered, with costs of suit, in a civil action, except 
where a penalty under subsection (b) or (c) or under sec-
tion 6651 or 6653 or part II of subchapter A of chapter 
68 may be collected from such person by assessment. 
‘‘(b) FAILURE TO PAY TAX.—Whoever fails to pay 
any tax imposed by this chapter at the time prescribed 
by law or regulations, shall, in addition to any other pen-
alty provided in this title, be liable to a penalty of 10 per-
cent of the tax due but unpaid. 
‘‘(c) SALE OF MARIJUANA OR MARIJUANA PRODUCTS 
FOR EXPORT.— 
‘‘(1) Every person who sells, relands, or receives 
within the jurisdiction of the United States any 
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marijuana products which have been labeled or 
shipped for exportation under this chapter, 
‘‘(2) every person who sells or receives such re-
landed marijuana products, and 
‘‘(3) every person who aids or abets in such 
selling, relanding, or receiving, 
shall, in addition to the tax and any other penalty provided 
in this title, be liable for a penalty equal to the greater 
of $10,000 or 10 times the amount of the tax imposed 
by this chapter. All marijuana products relanded within 
the jurisdiction of the United States shall be forfeited to 
the United States and destroyed. All vessels, vehicles, and 
aircraft used in such relanding or in removing such mari-
juana products from the place where relanded, shall be 
forfeited to the United States. 
‘‘(d) APPLICABILITY OF SECTION 6665.—The pen-
alties imposed by subsections (b) and (c) shall be assessed, 
collected, and paid in the same manner as taxes, as pro-
vided in section 6665(a). 
‘‘(e) CROSS REFERENCES.—For penalty for failure to 
make deposits or for overstatement of deposits, see section 
6656. 
‘‘SEC. 5942. CRIMINAL PENALTIES. 
‘‘(a) FRAUDULENT OFFENSES.—Whoever, with in-
tent to defraud the United States— 
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‘‘(1) engages in business as a marijuana enter-
prise without filing the application and obtaining the 
permit 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 mari-
juana products subject to tax under this chapter, or 
‘‘(5) with intent to defraud the United States, 
purchases, receives, possesses, offers for sale, or sells 
or otherwise disposes of, any marijuana product— 
‘‘(A) upon which the tax has not been paid 
or determined in the manner and at the time 
prescribed by this chapter or regulations there-
under, or 
‘‘(B) which, without payment of tax pursu-
ant to section 5904, have been diverted from 
the applicable purpose or use specified in that 
section, 
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shall, for each such offense, be fined not more than 
$10,000, or imprisoned not more than 5 years, or both. 
‘‘(b) OFFENSES
RELATING
TO
RETAIL
TRANS-
ACTIONS.—Any retailer who sells, in any single trans-
action, more than 1 ounce of any marijuana product (or 
in the case of any marijuana product containing a mari-
juana derivative, an equivalent amount, as established by 
the Secretary) shall be, upon conviction, fined not more 
than $10,000, or imprisoned for not more than 5 years, 
or both. 
‘‘(c) OTHER OFFENSES.—Whoever, otherwise than 
as provided in subsections (a) and (b) and section 
5911(b), violates any provision of this chapter, or of regu-
lations prescribed thereunder, shall, for each such offense, 
be fined not more than $1,000, or imprisoned not more 
than 1 year, or both. 
‘‘(d) LIABILITY TO TAX.—Any person who possesses 
marijuana products in violation of subsection (a) shall be 
liable for a tax equal to the tax on such articles.’’. 
(b) STUDY.—Not later than 2 years after the date 
of the enactment of this Act, and every 5 years thereafter, 
the Secretary of the Treasury, or the Secretary’s delegate, 
shall— 
(1) conduct a study concerning the characteris-
tics of the marijuana industry, including the number 
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of persons operating marijuana enterprises at each 
level of such industry, the volume of sales, the 
amount of tax collected each year, and the areas of 
evasion, and 
(2) submit to Congress recommendations to im-
prove the regulation of the industry and the admin-
istration of the related tax. 
(c) 
CONFORMING
AMENDMENT.—Section 
6103(o)(1)(A) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and firearms’’ and inserting ‘‘fire-
arms, and marijuana’’. 
(d) CLERICAL AMENDMENT.—The table of chapters 
for 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. MARIJUANA PRODUCTS’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to sales, and applications for 
permits under section 5922 of the Internal Revenue 
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-
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ments under section 5922 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. 
Æ 
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