116 HR 1120 IH: Marijuana Revenue and Regulation Act U.S. House of Representatives 2019-02-08 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I116th CONGRESS1st SessionH. R. 1120IN THE HOUSE OF REPRESENTATIVESFebruary 8, 2019Mr. Blumenauer introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on the Judiciary, Energy and Commerce, Natural Resources, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedA BILLTo amend the Internal Revenue Code of 1986 to provide for the taxation and regulation of marijuana products, and for other purposes.
1.
Short title; table of contents
(a)
Short title
This Act may be cited as the Marijuana Revenue and Regulation Act. (b)
Table of contents
The table of contents of this Act is as follows:Sec. 1. Short title; table of contents. TITLE I—Taxation Sec. 101. Establishment of taxes relating to marijuana products. TITLE II—Regulation Subtitle A—Amendments To decriminalize marijuana at the Federal level Sec. 201. Decriminalization of marijuana. Sec. 202. Application of the Controlled Substances Act and Controlled Substances Import and Export Act to marijuana. Sec. 203. Conforming and ancillary amendments. Subtitle B—Federal Marijuana Licensing and Related Matters Sec. 211. Federal marijuana administration. Sec. 212. Addition of marijuana to certain legal authorities relating to intoxicating liquors. Subtitle C—Other Amendments Relating to Federal Authority Regarding Marijuana Sec. 221. Food and Drug Administration. Sec. 222. Transferring agency functions with regard to marijuana. Sec. 223. Unfair advertising practices. Sec. 224. Comptroller General review of laws and regulations. Sec. 225. Principal trade negotiating objective regarding marijuana, marijuana derivatives, and marijuana products. TITLE III—Funding Sec. 301. Increased funding for the Alcohol, Tobacco, and Marijuana Tax and Trade Bureau.
<enum>I</enum><header>Taxation</header> <section id="HB9601001835D4BBFB54E096FE5543A68"><enum>101.</enum><header>Establishment of taxes relating to marijuana products</header> <subsection id="H5061A54E64224B7F8FAA939728918350"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subtitle E of title I of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter:</text> <quoted-block display-inline="no-display-inline" id="H49ECBDC1DD3849B4A075E99E3A1F0408" style="OLC"> <chapter id="H2766BE71ED1B44A99C0B606C4A7BF9CD"><enum>56</enum><header>Marijuana Products</header><toc container-level="chapter-container" idref="H2766BE71ED1B44A99C0B606C4A7BF9CD" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"><toc-entry idref="HB78839CC2888439B86F33BEA15A5DACC" level="subchapter">Subchapter A. Tax on Marijuana Products</toc-entry><toc-entry level="subchapter">Subchapter B. Occupational Tax</toc-entry><toc-entry idref="H7FBC02847ED044D8BE3E8568CAE495EA" level="subchapter">Subchapter C. Bond and Permits</toc-entry><toc-entry bold="off" level="subchapter">Subchapter D. Operations</toc-entry><toc-entry bold="off" level="subchapter">Subchapter E. Penalties</toc-entry></toc> <subchapter id="HB78839CC2888439B86F33BEA15A5DACC"><enum>A</enum><header>Tax on Marijuana Products</header><toc><toc-entry idref="HF9F0DA5D5A394F5989D7DD6406C239B0" level="section">Sec. 5901. Imposition of tax.</toc-entry><toc-entry idref="H07AE60BA0D5D4160A12E4EA69C85B466" level="section">Sec. 5902. Definitions.</toc-entry><toc-entry idref="idB462DDA73C044A2288CB8DA85703A381" level="section">Sec. 5903. Liability and method of payment.</toc-entry><toc-entry idref="idD1A29A056E904D02BCAEFE3EA146FEC2" level="section">Sec. 5904. Exemption from tax.</toc-entry><toc-entry idref="id17880B0665FC4BEBBDD6B3F9B6711A05" level="section">Sec. 5905. Credit, refund, or drawback of tax.</toc-entry></toc> <section id="HF9F0DA5D5A394F5989D7DD6406C239B0"><enum>5901.</enum><header>Imposition of tax</header> <subsection id="idAA1F6ADACC08400DAB343F4151733009"><enum>(a)</enum><header>Imposition of tax</header><text>There is hereby imposed on any marijuana product produced in or imported into the United States a tax equal to—</text> <paragraph id="id28DE1CCE66124B68B2A5510EADBCB75E"><enum>(1)</enum><text>for any such product sold during the first 5 calendar years in which this chapter becomes effective, the applicable percentage of the price for which such product is sold, and</text> </paragraph><paragraph id="id1365856FC34240B38F2776F73217FB3C"><enum>(2)</enum><text>for any product sold during any calendar year after the period described in paragraph (1), the applicable equivalent rate.</text> </paragraph></subsection><subsection id="id834451CF969A4EDA8D5EC59F98EAF641"><enum>(b)</enum><header>Applicable percentage</header><text>For purposes of subsection (a)(1), the applicable percentage shall be determined as follows:</text> <paragraph id="id7420AE333C9A40D18938FD8A42CCD0A8"><enum>(1)</enum><text>For any marijuana product sold during the first 2 calendar years in which this chapter becomes effective, 10 percent.</text> </paragraph><paragraph id="id316C95AADBD346A1A947CDC146AB3375"><enum>(2)</enum><text>For any marijuana product sold during the calendar year after the period described in paragraph (1), 15 percent.</text> </paragraph><paragraph id="id0351C14966A542BA8687D0F108B3D5B6"><enum>(3)</enum><text>For any marijuana product sold during the calendar year after the period described in paragraph (2), 20 percent.</text> </paragraph><paragraph id="idC2AB5FE40C2C4388ABB0B0C383E46566"><enum>(4)</enum><text>For any marijuana product sold during the calendar year after the period described in paragraph (3), 25 percent.</text> </paragraph></subsection><subsection id="id4B54247134184F7EBB633BDE1DF67C44"><enum>(c)</enum><header>Applicable equivalent rate</header> <paragraph id="idAA205612D1284E50AB198611C6ED6C99"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a)(2), the applicable equivalent rate for each calendar year shall be equal to—</text> <subparagraph id="id9F9936133EFB4C1A81800BFEEBFF4906"><enum>(A)</enum><text>in the case of any marijuana product not described in subparagraph (B) which is sold during such year, the applicable rate per ounce of such product (and a proportionate tax at the like rate on all fractional parts of an ounce of such product), and</text> </subparagraph><subparagraph id="idFFD5AA33303C4FB192213A2A021FD59C"><enum>(B)</enum><text>in the case of any marijuana product containing a marijuana derivative which is sold during such year, the applicable rate per gram of tetrahydrocannabinol in such product (and a proportionate tax at the like rate on all fractional parts of a gram of tetrahydrocannabinol in such product).</text> </subparagraph></paragraph><paragraph id="id55711B4CA2C44B468707F86BC4BA1EAA"><enum>(2)</enum><header>Applicable rate</header> <subparagraph id="idF0E70BA994684DB48683A6BF06F59EC7"><enum>(A)</enum><header>In general</header><text>For purposes of paragraph (1)(A), the applicable rate per ounce for any calendar year shall be equal to 25 percent of the prevailing sales price of marijuana sold in the United States during the 12-month period ending one calendar quarter before such calendar year, expressed on a per ounce basis, as determined by the Secretary.</text> </subparagraph><subparagraph id="id56E89760BB584219AA9741A24909AAF2"><enum>(B)</enum><header>Marijuana derivatives</header><text>For purposes of paragraph (1)(B), the applicable rate per gram of tetrahydrocannabinol shall be equal to the quotient obtained by dividing—</text> <clause id="id5482ACBA3AC34FA5995A486A12CBA5F1"><enum>(i)</enum><text>the applicable rate per ounce (as determined under subparagraph (A)), by</text> </clause><clause id="id77D2D9D0829844C7BB94CC7645BCAA8D"><enum>(ii)</enum><text>2.83495.</text> </clause></subparagraph></paragraph></subsection><subsection id="idB913E0C458964C7EBBBC84B1F5CF60A1"><enum>(d)</enum><header>Time of attachment on marijuana products</header><text>The tax under this section shall attach to any marijuana product as soon as such product is in existence as such, whether it be subsequently separated or transferred into any other substance, either in the process of original production or by any subsequent process.</text> </subsection></section><section display-inline="no-display-inline" id="H07AE60BA0D5D4160A12E4EA69C85B466" section-type="subsequent-section"><enum>5902.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this chapter:</text> <paragraph display-inline="no-display-inline" id="idD3B6F4AE0EAC4A7FB1D66AF4CE576A01"><enum>(1)</enum><header>Export warehouse</header><text>The term <term>export warehouse</term> means a bonded internal revenue warehouse for the storage of marijuana products, upon which the internal revenue tax has not been paid—</text> <subparagraph display-inline="no-display-inline" id="id0B6F5F8A907E447E9491579DC2C92DA6"><enum>(A)</enum><text>for subsequent shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or</text> </subparagraph><subparagraph display-inline="no-display-inline" id="id33BCB6E5F3924741AD8FE70122E0C40D"><enum>(B)</enum><text>for consumption beyond the jurisdiction of the internal revenue laws of the United States.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id96EDEA7377784904AFF005ED12A3B969"><enum>(2)</enum><header>Export warehouse proprietor</header><text>The term <term>export warehouse proprietor</term> means any person who operates an export warehouse.</text> </paragraph><paragraph display-inline="no-display-inline" id="idD3BB7CAB55DB4EBA97A2A6C0CC181100"><enum>(3)</enum><header>Importer</header><text>The term <term>importer</term> means any person who—</text> <subparagraph id="id1306F1276BED4131BAE5B03D9732BC0C"><enum>(A)</enum><text>is in the United States and to whom nontaxpaid marijuana products, produced in a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, are shipped or consigned,</text> </subparagraph><subparagraph id="id3B5D7224CA45488EAA1EF2581E82295F"><enum>(B)</enum><text>removes marijuana products for sale or consumption in the United States from a customs bonded warehouse, or</text> </subparagraph><subparagraph id="id2398A63931944B6299ADD0DC59FC88A2"><enum>(C)</enum><text>smuggles or otherwise unlawfully brings marijuana or marijuana products into the United States.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="idDBBD5972603B42F78E3ABA99B50E3987"><enum>(4)</enum><header>Marijuana</header><text>The term <term>marijuana</term> has the meaning given the term <term>marihuana</term> under section 102(16) of the Controlled Substances Act (<external-xref legal-doc="usc" parsable-cite="usc/21/802">21 U.S.C. 802(16)</external-xref>).</text> </paragraph><paragraph display-inline="no-display-inline" id="id894D5A4CAF144230B33E592E0CDB8D5A"><enum>(5)</enum><header>Marijuana derivative</header><text>The term <term>marijuana derivative</term> means any article containing marijuana, or any derivative thereof, which is not a naturally grown and unadulterated marijuana flower.</text> </paragraph><paragraph display-inline="no-display-inline" id="id8E129BC0D6EE4DEEB81F406793BE4F67"><enum>(6)</enum><header>Marijuana enterprise</header><text>The term <term>marijuana enterprise</term> means a producer, export warehouse proprietor, or importer.</text> </paragraph><paragraph display-inline="no-display-inline" id="id49983779963B4A1DAADA6E899ADCECA8"><enum>(7)</enum><header>Marijuana product</header> <subparagraph display-inline="no-display-inline" id="id7365DDB366894D9A8E0A622FD9E28724"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>marijuana product</term> means any article which contains marijuana or any marijuana derivative.</text> </subparagraph><subparagraph display-inline="no-display-inline" id="id24BCDF46F46B40F89F7327FAFA045CA3"><enum>(B)</enum><header>Exceptions</header> <clause display-inline="no-display-inline" id="idD41A62FF3EB94C1FA099D1E4E17ECE94"><enum>(i)</enum><header>In general</header><text>The term <term>marijuana product</term> shall not include—</text> <subclause display-inline="no-display-inline" id="id5EAFA55BD4134955A7591DBA16D328E2"><enum>(I)</enum><text>any article containing marijuana which has been approved by the Food and Drug Administration for sale for therapeutic purposes and is marketed and sold solely for such purpose, or</text> </subclause><subclause display-inline="no-display-inline" id="id14F12C33909D4EB284707BA25C689858"><enum>(II)</enum><text>industrial hemp.</text> </subclause></clause><clause display-inline="no-display-inline" id="id662C7C5C0ECB4C27856AF3EA0531FFD7"><enum>(ii)</enum><header>Industrial hemp</header><text>For purposes of clause (i)(II), the term <term>industrial hemp</term> means the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 te­tra­hy­dro­can­nab­i­nol concentration of not more than 0.3 percent on a dry weight basis.</text> </clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="idF2DDBD52A7224096B6416B678DDE9937"><enum>(8)</enum><header>Marijuana production facility</header><text>The term <term>marijuana production facility</term> means an establishment which is qualified under subchapter C to perform any operation for which such qualification is required under such subchapter.</text> </paragraph><paragraph display-inline="no-display-inline" id="id0C1AE03A64734F3A8403B1F7CCE24AEC"><enum>(9)</enum><header>Producer</header><text>The term <term>producer</term> means any person who—</text> <subparagraph display-inline="no-display-inline" id="idACCA87C16B3C479FB5695CDAD67C225B"><enum>(A)</enum><text>plants, cultivates, harvests, or otherwise produces marijuana or marijuana products, or</text> </subparagraph><subparagraph display-inline="no-display-inline" id="idC1EFAB8885BA44D38213BE3D0576D7AF"><enum>(B)</enum><text>manufactures, compounds, converts, processes, prepares, or packages marijuana products.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id777530831E0140F1BFC0CA7D71CF86A3"><enum>(10)</enum><header>Removal; remove</header><text>The terms <term>removal</term> or <term>remove</term> mean—</text> <subparagraph display-inline="no-display-inline" id="id83427A3AE0F94C9B9BB622163211CFB8"><enum>(A)</enum><text>the removal of marijuana products from the premises of a producer, or from internal revenue bond under section 5904, as the Secretary shall by regulation prescribe,</text> </subparagraph><subparagraph display-inline="no-display-inline" id="idEA56BDE029F64C62A56D8EEDCA0219A6"><enum>(B)</enum><text>release of such products from customs custody, or</text> </subparagraph><subparagraph display-inline="no-display-inline" id="idF19BC4E5D7594544A5FC9C829A39CBE3"><enum>(C)</enum><text>smuggling or other unlawful importation of such products into the United States.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id3FF7583229814A119A8A3F27B961E7F9"><enum>(11)</enum><header>Retailer</header><text>The term <term>retailer</term> means a person who sells marijuana products to consumers.</text> </paragraph></section><section id="idB462DDA73C044A2288CB8DA85703A381"><enum>5903.</enum><header>Liability and method of payment</header> <subsection id="id67369799F8F641B9AF45C8274BE2CD20"><enum>(a)</enum><header>Liability for tax</header> <paragraph id="id501696B428B14E508064E4406C92E9DA"><enum>(1)</enum><header>Original liability</header><text>The producer or importer of any marijuana product shall be liable for the taxes imposed thereon by section 5901.</text> </paragraph><paragraph id="id099211EE74CE4F5BA0D9172CD09F6A9B"><enum>(2)</enum><header>Transfer of liability</header> <subparagraph id="id019F81201C694764B406A36CAAC38603"><enum>(A)</enum><header>In general</header><text>When marijuana products are transferred, without payment of tax, pursuant to section 5904, the liability for tax shall be transferred in accordance with the provisions of this paragraph.</text> </subparagraph><subparagraph id="id2289BA75AD1348FFAE857E5D4E862A29"><enum>(B)</enum><header>Transfer between producer and export warehouse proprietor</header><text>In the case of marijuana products which are transferred between the bonded premises of producers and export warehouse proprietors, the transferee shall become liable for the tax upon receipt by the transferee of such articles, and the transferor shall thereupon be relieved of their liability for such tax.</text> </subparagraph><subparagraph id="id04325E7F365342A287A1C6326303D340"><enum>(C)</enum><header>Transfer from customs custody to producer</header><text>In the case of marijuana products which are released in bond from customs custody for transfer to the bonded premises of a producer, the transferee shall become liable for the tax on such articles upon release from customs custody, and the importer shall thereupon be relieved of their liability for such tax.</text> </subparagraph><subparagraph id="idCC5EE95AFC7443C7B61062B763E14865"><enum>(D)</enum><header>Returned to bond</header><text>All provisions of this chapter applicable to marijuana products in bond shall be applicable to such articles returned to bond upon withdrawal from the market or returned to bond after previous removal for a tax-exempt purpose.</text> </subparagraph></paragraph></subsection><subsection id="idEC7CEDA81A974F689D3A276331888650"><enum>(b)</enum><header>Method of payment of tax</header> <paragraph id="id6B1B6C378BCF45CF91353B3E5C03ABCF"><enum>(1)</enum><header>In general</header> <subparagraph id="idD49D75D56F284D3E9FB8D93CF205BE25"><enum>(A)</enum><header>Determination and payment of tax</header><text>The taxes imposed by section 5901 shall be determined at the time of removal of the marijuana products. Such taxes shall be paid on the basis of return. The Secretary shall, by regulations, prescribe the period or the event for which such return shall be made and the information to be furnished on such return.</text> </subparagraph><subparagraph id="idBA11A511C7AE4B649FDEE790EF0CC9C7"><enum>(B)</enum><header>Postponement</header><text>Any postponement under this subsection of the payment of taxes determined at the time of removal shall be conditioned upon the filing of such additional bonds, and upon compliance with such requirements, as the Secretary may prescribe for the protection of the revenue. The Secretary may, by regulations, require payment of tax on the basis of a return prior to removal of the marijuana products where a person defaults in the postponed payment of tax on the basis of a return under this subsection or regulations prescribed thereunder.</text> </subparagraph><subparagraph id="id8613B71535A64325B189346B300E56A6"><enum>(C)</enum><header>Administration and penalties</header><text>All administrative and penalty provisions of this title, insofar as applicable, shall apply to any tax imposed by section 5901.</text> </subparagraph></paragraph><paragraph id="id9C3566C4FA354917AC095BE66820BC5A"><enum>(2)</enum><header>Time for payment of taxes</header> <subparagraph id="idDE4E4D669275411CB1FBCFCDFDFA9996"><enum>(A)</enum><header>In general</header><text>Except as otherwise provided in this paragraph, in the case of taxes on marijuana products removed during any semimonthly period under bond for deferred payment of tax, the last day for payment of such taxes shall be the 14th day after the last day of such semimonthly period.</text> </subparagraph><subparagraph id="idD420D66DF87641A3875CAC13220B8723"><enum>(B)</enum><header>Imported articles</header><text>In the case of marijuana products which are imported into the United States, the following provisions shall apply:</text> <clause id="idCF2FE572333D4E8497282956B4C516D6"><enum>(i)</enum><header>In general</header><text>The last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is entered into the customs territory of the United States.</text> </clause><clause id="idD4A75C8803634ED09BE1ED2F8BFFC36B"><enum>(ii)</enum><header>Special rule for entry of warehousing</header><text>Except as provided in clause (iv), in the case of an entry for warehousing, the last day for payment of tax shall not be later than the 14th day after the last day of the semimonthly period during which the article is removed from the first such warehouse.</text> </clause><clause id="idD0A0122F7FE24D559D811A945E9D83EA"><enum>(iii)</enum><header>Foreign trade zones</header><text>Except as provided in clause (iv) and in regulations prescribed by the Secretary, articles brought into a foreign trade zone shall, notwithstanding any other provision of law, be treated for purposes of this subsection as if such zone were a single customs warehouse.</text> </clause><clause id="id1056125F9E904B54B89031C1AB3BE530"><enum>(iv)</enum><header>Exception for articles destined for export</header><text>Clauses (ii) and (iii) shall not apply to any article which is shown to the satisfaction of the Secretary to be destined for export.</text> </clause></subparagraph><subparagraph id="idDDF7D2DE777D4A4CABFF4F8EF030A5CA"><enum>(C)</enum><header>Marijuana products brought into the United States from Puerto Rico</header><text>In the case of marijuana products which are brought into the United States from Puerto Rico, the last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is brought into the United States.</text> </subparagraph><subparagraph id="id42168985F58F472B88B28CBD00913D28"><enum>(D)</enum><header>Special rule where due date falls on Saturday, Sunday, or holiday</header><text>Notwithstanding section 7503, if, but for this subparagraph, the due date under this paragraph would fall on a Saturday, Sunday, or a legal holiday (as defined in section 7503), such due date shall be the immediately preceding day which is not a Saturday, Sunday, or such a holiday.</text> </subparagraph><subparagraph id="idCC3B4B47052D474BA44ACDD9386D66AC"><enum>(E)</enum><header>Special rule for unlawfully produced marijuana products</header><text>In the case of any marijuana products produced in the United States at any place other than the premises of a producer that has filed the bond and obtained the permit required under this chapter, tax shall be due and payable immediately upon production.</text> </subparagraph></paragraph><paragraph id="id16386BC08A0447DB86CAB002F9FB9D4E"><enum>(3)</enum><header>Payment by electronic fund transfer</header><text>Any person who in any 12-month period, ending December 31, was liable for a gross amount equal to or exceeding $5,000,000 in taxes imposed on marijuana products by section 5901 (or section 7652) shall pay such taxes during the succeeding calendar year by electronic fund transfer (as defined in section 5061(e)(2)) to a Federal Reserve Bank. Rules similar to the rules of section 5061(e)(3) shall apply to the $5,000,000 amount specified in the preceding sentence.</text> </paragraph></subsection><subsection id="id8FF922A833BC4E34884038DBDF2AABDA"><enum>(c)</enum><header>Definition of Price</header> <paragraph id="idF35557FF69F245B6B8CA2960F68747F8"><enum>(1)</enum><header>Containers, packing and transportation charges</header><text display-inline="yes-display-inline">In determining, for the purposes of this chapter, the price for which an article is sold, there shall be included any charge for coverings and containers of whatever nature, and any charge incident to placing the article in condition packed ready for shipment, but there shall be excluded the amount of tax imposed by this chapter, whether or not stated as a separate charge. A transportation, delivery, insurance, installation, or other charge (not required by the preceding sentence to be included) shall be excluded from the price only if the amount thereof is established to the satisfaction of the Secretary in accordance with regulations.</text> </paragraph><paragraph id="id3E803715D5E34E4C902EDAA697995EB3"><enum>(2)</enum><header>Constructive sale price</header> <subparagraph id="id56563EBD17874C76A2FA83FB148FBE27"><enum>(A)</enum><header>In general</header><text>If an article is sold directly to consumers, sold on consignment, or sold (otherwise than through an arm’s length transaction) at less than the fair market price, or if the price for which the article sold cannot be determined, the tax under section 5901(a) shall be computed on the price for which such articles are sold, in the ordinary course of trade, by producers thereof, as determined by the Secretary.</text> </subparagraph><subparagraph id="id11D1E859E7724A068257B226DA3153F6"><enum>(B)</enum><header>Arm’s length</header> <clause id="idDF7F61E7B4CE4A7DBDBD0ED59898A502"><enum>(i)</enum><header>In general</header><text>For purposes of this section, a sale is considered to be made under circumstances otherwise than at arm’s length if—</text> <subclause id="id1A4AD87ED8A949428F734E253EFAF4D9"><enum>(I)</enum><text display-inline="yes-display-inline">the parties are members of the same controlled group, whether or not such control is actually exercised to influence the sale price, or</text> </subclause><subclause id="id3933561166C94843B5917EF463D42C43"><enum>(II)</enum><text>the sale is made pursuant to special arrangements between a producer and a purchaser.</text> </subclause></clause><clause id="idF35F24EE18A74F4BA068DE5266955472"><enum>(ii)</enum><header>Controlled groups</header> <subclause id="idEC670E49673C4079B2B909E51AB5AFFD"><enum>(I)</enum><header>In general</header><text>The term <term>controlled group</term> has the meaning given to such term by subsection (a) of section 1563, except that <quote>more than 50 percent</quote> shall be substituted for <quote>at least 80 percent</quote> each place it appears in such subsection.</text> </subclause><subclause id="id1645788A31BD43D1B55BF5EC7BBAC156"><enum>(II)</enum><header>Controlled groups which include nonincorporated persons</header><text>Under regulations prescribed by the Secretary, principles similar to the principles of subclause (I) shall apply to a group of persons under common control where one or more of such persons is not a corporation.</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="id5C50DE8628224DC1AEB8BB0403DE194A"><enum>(d)</enum><header>Partial payments and installment accounts</header> <paragraph id="idC59EE911D7F740B2B18AAD7C1182FC59"><enum>(1)</enum><header>Partial payments</header><text>In the case of—</text> <subparagraph id="id5DF8892C86F54ADE872157D1D2536BB6"><enum>(A)</enum><text>a contract for the sale of an article wherein it is provided that the price shall be paid by installments and title to the article sold does not pass until a future date notwithstanding partial payment by installments,</text> </subparagraph><subparagraph id="idF017622D93D04213AA899368956D12BC"><enum>(B)</enum><text>a conditional sale, or</text> </subparagraph><subparagraph id="idAEB666695E5C42378A6793EF743DAF42"><enum>(C)</enum><text>a chattel mortgage arrangement wherein it is provided that the sales price shall be paid in installments,</text> </subparagraph><continuation-text continuation-text-level="paragraph">there shall be paid upon each payment with respect to the article a percentage of such payment equal to the rate of tax in effect on the date such payment is due.</continuation-text></paragraph><paragraph id="id4EDFD963FA7C4EA0968F4364B29D8378"><enum>(2)</enum><header>Sales of installment accounts</header><text>If installment accounts, with respect to payments on which tax is being computed as provided in paragraph (1), are sold or otherwise disposed of, then paragraph (1) shall not apply with respect to any subsequent payments on such accounts (other than subsequent payments on returned accounts with respect to which credit or refund is allowable by reason of section 6416(b)(5)), but instead—</text> <subparagraph id="id7B4639A2A9674BEBAC279D72829A4D64"><enum>(A)</enum><text>there shall be paid an amount equal to the difference between—</text> <clause id="idBA562482B254457C8FEB0B4436C40E9D"><enum>(i)</enum><text>the tax previously paid on the payments on such installment accounts, and</text> </clause><clause id="id446B46E282944B0D80EAB1546E9DE999"><enum>(ii)</enum><text>the total tax which would be payable if such installment accounts had not been sold or otherwise disposed of (computed as provided in paragraph (1)), except that</text> </clause></subparagraph><subparagraph id="id4D203F07C9514B728838A597A86EBE6E"><enum>(B)</enum><text>if any such sale is pursuant to the order of, or subject to the approval of, a court of competent jurisdiction in a bankruptcy or insolvency proceeding, the amount computed under subparagraph (A) shall not exceed the sum of the amounts computed by multiplying—</text> <clause id="idC55FDE010DCA4E01BEA97303904FB562"><enum>(i)</enum><text>the proportionate share of the amount for which such accounts are sold which is allocable to each unpaid installment payment, by</text> </clause><clause id="idAF20B55D03334429BD88863C3FA7A168"><enum>(ii)</enum><text>the rate of tax under this chapter in effect on the date such unpaid installment payment is or was due.</text> </clause><continuation-text continuation-text-level="subparagraph">The sum of the amounts payable under this subsection in respect of the sale of any article shall not exceed the total tax.</continuation-text></subparagraph></paragraph></subsection></section><section id="idD1A29A056E904D02BCAEFE3EA146FEC2"><enum>5904.</enum><header>Exemption from tax</header> <subsection id="idAADA75A923BC4F4996289F2DDFE25D90"><enum>(a)</enum><header>In general</header><text>Marijuana products on which the internal revenue tax has not been paid or determined may, subject to such regulations as the Secretary shall prescribe, be withdrawn from the bonded premises of any producer in approved containers free of tax and not for resale for use—</text> <paragraph id="idD05A604408B847B0BF28237A15F12529"><enum>(1)</enum><text>exclusively in scientific research by a laboratory,</text> </paragraph><paragraph id="id6582032BF3E049F59D415401B0963288"><enum>(2)</enum><text>by a proprietor of a marijuana production facility in research, development, or testing (other than consumer testing or other market analysis) of processes, systems, materials, or equipment, relating to marijuana or marijuana operations, under such limitations and conditions as to quantities, use, and accountability as the Secretary may by regulations require for the protection of the revenue, or</text> </paragraph><paragraph id="id086291DB9821419FB0D83725B445D341"><enum>(3)</enum><text>by the United States or any governmental agency thereof, any State, any political subdivision of a State, or the District of Columbia, for nonconsumption purposes.</text> </paragraph></subsection><subsection id="idFBDF08515A6B40FCA5D3F14972B72682"><enum>(b)</enum><header>Marijuana products transferred or removed in bond from domestic factories and export warehouses</header> <paragraph id="idFFCDA350240E4DB8B1142A27332BEFE4"><enum>(1)</enum><header>In general</header><text>Subject to such regulations and under such bonds as the Secretary shall prescribe, a producer or export warehouse proprietor may transfer marijuana products, without payment of tax, to the bonded premises of another producer or export warehouse proprietor, or remove such articles, without payment of tax, for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States.</text> </paragraph><paragraph id="id21B2BA6145444B98B360DEBA9C168436"><enum>(2)</enum><header>Labeling</header><text>Marijuana products may not be transferred or removed under this subsection unless such products bear such marks, labels, or notices as the Secretary shall by regulations prescribe.</text> </paragraph></subsection><subsection id="id040DFB3186164F6DB0366DE2BC07AA4B"><enum>(c)</enum><header>Marijuana products released in bond from customs custody</header><text>Marijuana products imported or brought into the United States may be released from customs custody, without payment of tax, for delivery to a producer or export warehouse proprietor if such articles are not put up in packages, in accordance with such regulations and under such bond as the Secretary shall prescribe.</text> </subsection><subsection id="idCE4ACB239A77458A95CD01F7E880F45C"><enum>(d)</enum><header>Marijuana products exported and returned</header><text>Marijuana products classifiable under item 9801.00.10 of the Harmonized Tariff Schedule of the United States (relating to duty on certain articles previously exported and returned), as in effect on the date of the enactment of the <short-title>Marijuana Revenue and Regulation Act</short-title>, may be released from customs custody, without payment of that part of the duty attributable to the internal revenue tax for delivery to the original producer of such marijuana products or to the export warehouse proprietor authorized by such producer to receive such products, in accordance with such regulations and under such bond as the Secretary shall prescribe. Upon such release such products shall be subject to this chapter as if they had not been exported or otherwise removed from internal revenue bond.</text> </subsection></section><section id="id17880B0665FC4BEBBDD6B3F9B6711A05"><enum>5905.</enum><header>Credit, refund, or drawback of tax</header> <subsection id="id0947420DA8004395916523B2FA15ECCC"><enum>(a)</enum><header>Credit or refund</header> <paragraph id="idE726013B1C884088AA6A6A6B82940509"><enum>(1)</enum><header>In general</header><text>Credit or refund of any tax imposed by this chapter or section 7652 shall be allowed or made (without interest) to the producer, importer, or export warehouse proprietor on proof satisfactory to the Secretary that the claimant producer, importer, or export warehouse proprietor has paid the tax on—</text> <subparagraph id="idF2845CEA2B4E4DF6A7B52365618A2C81"><enum>(A)</enum><text>marijuana products withdrawn from the market by the claimant, or</text> </subparagraph><subparagraph id="id3463CE52DED641B8A565F0F77C38023D"><enum>(B)</enum><text>such products lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, while in the possession or ownership of the claimant.</text> </subparagraph></paragraph><paragraph id="id56E21CA853BE4704899B495A51EDAD1B"><enum>(2)</enum><header>Marijuana products lost or destroyed in bond</header> <subparagraph id="id5133D0CFE670453E8224A6C2C9D46E87"><enum>(A)</enum><header>Extent of loss allowance</header><text>No tax shall be collected in respect of marijuana products lost or destroyed while in bond, except that such tax shall be collected—</text> <clause id="id341EADFEE12B4E6C91FA1B18EF2F65A9"><enum>(i)</enum><text>in the case of loss by theft, unless the Secretary finds that the theft occurred without connivance, collusion, fraud, or negligence on the part of the proprietor of marijuana production facility, owner, consignor, consignee, bailee, or carrier, or their employees or agents,</text> </clause><clause id="idAC9DD9AA447947CDBCB9A6D567B863A1"><enum>(ii)</enum><text>in the case of voluntary destruction, unless such destruction is carried out as provided in paragraph (3), and</text> </clause><clause id="id248F017D5E5C48D39EC7AE4CEDAA8F0C"><enum>(iii)</enum><text>in the case of an unexplained shortage of marijuana products.</text> </clause></subparagraph><subparagraph id="idF62A7DBCF00148BDB69780EE119B8BED"><enum>(B)</enum><header>Proof of loss</header><text>In any case in which marijuana products are lost or destroyed, whether by theft or otherwise, the Secretary may require the proprietor of a marijuana production facility or other person liable for the tax to file a claim for relief from the tax and submit proof as to the cause of such loss. In every case where it appears that the loss was by theft, the burden shall be upon the proprietor of the marijuana production facility or other person responsible for the tax under section 5901 to establish to the satisfaction of the Secretary that such loss did not occur as the result of connivance, collusion, fraud, or negligence on the part of the proprietor of the marijuana production facility, owner, consignor, consignee, bailee, or carrier, or their employees or agents.</text> </subparagraph><subparagraph id="id50C05B52B25E44D9BB33A6A13D892D88"><enum>(C)</enum><header>Refund of tax</header><text>In any case where the tax would not be collectible by virtue of subparagraph (A), but such tax has been paid, the Secretary shall refund such tax.</text> </subparagraph><subparagraph id="idD94B9B9C835C449E9091957859C7D176"><enum>(D)</enum><header>Limitations</header><text>Except as provided in subparagraph (E), no tax shall be abated, remitted, credited, or refunded under this paragraph where the loss occurred after the tax was determined. The abatement, remission, credit, or refund of taxes provided for by subparagraphs (A) and (C) in the case of loss of marijuana products by theft shall only be allowed to the extent that the claimant is not indemnified against or recompensed in respect of the tax for such loss.</text> </subparagraph><subparagraph id="id9EB63F255D07459E9551AD1B6AF5A7BF"><enum>(E)</enum><header>Applicability</header><text>The provisions of this paragraph shall extend to and apply in respect of marijuana products lost after the tax was determined and before completion of the physical removal of the marijuana products from the bonded premises.</text> </subparagraph></paragraph><paragraph id="id5EBC72EA0EA8435592C90510574BB948"><enum>(3)</enum><header>Voluntary destruction</header><text>The proprietor of a marijuana production facility or other persons liable for the tax imposed by this chapter or by section 7652 with respect to any marijuana product in bond may voluntarily destroy such products, but only if such destruction is under such supervision and under such regulations as the Secretary may prescribe.</text> </paragraph><paragraph id="idAE9538407F984992A2B10540DE8F6AFC"><enum>(4)</enum><header>Limitation</header><text>Any claim for credit or refund of tax under this subsection shall be filed within 6 months after the date of the withdrawal from the market, loss, or destruction of the products to which the claim relates, and shall be in such form and contain such information as the Secretary shall by regulations prescribe.</text> </paragraph></subsection><subsection id="id6DD2CF02C93545CA8F729FCE367AC9AF"><enum>(b)</enum><header>Drawback of tax</header><text>There shall be an allowance of drawback of tax paid on marijuana products, when shipped from the United States, in accordance with such regulations and upon the filing of such bond as the Secretary shall prescribe.</text> </subsection></section></subchapter><subchapter id="id136D29F2A22340DD986331D3F872A8C2" style="OLC"><enum>B</enum><header>Occupational Tax</header><toc><toc-entry idref="id34E4B697E4C84407B479669F19C95EC3" level="section">Sec. 5911. Imposition and rate of tax.</toc-entry><toc-entry idref="id2858C5A825334EF1A502B2E317405145" level="section">Sec. 5912. Payment of tax.</toc-entry><toc-entry idref="id851A0B02FCB742F4ADDC78CFF5C12F84" level="section">Sec. 5913. Provisions relating to liability for occupational taxes.</toc-entry><toc-entry idref="id96CF2F729C124E73B70923C01DDF2163" level="section">Sec. 5914. Application to State laws.</toc-entry></toc> <section id="id34E4B697E4C84407B479669F19C95EC3"><enum>5911.</enum><header>Imposition and rate of tax</header> <subsection id="id9A268A45CD3E45F4B1465892FC68BD22"><enum>(a)</enum><header>In general</header><text>Any person engaged in business as a producer or an export warehouse proprietor shall pay a tax of $1,000 per year (referred to in this subchapter as an <term>occupational tax</term>) in respect of each premises at which such business is carried on.</text> </subsection><subsection id="id3D7C99F9DCBA46DC88420ADB44056882"><enum>(b)</enum><header>Penalty for failure To register</header><text>Any person engaged in business as a producer or an export warehouse proprietor who willfully fails to pay the occupation tax shall be fined not more than $5,000, or imprisoned not more than 2 years, or both, for each such offense.</text> </subsection></section><section id="id2858C5A825334EF1A502B2E317405145"><enum>5912.</enum><header>Payment of tax</header> <subsection id="id0C187A19C3A84119ACFE3C0F04190090"><enum>(a)</enum><header>Condition precedent to carrying on business</header><text>No person shall be engaged in or carry on any trade or business subject to the occupational tax until such person has paid such tax.</text> </subsection><subsection id="id5207885D2E43404CB12265385C61353B"><enum>(b)</enum><header>Computation</header> <paragraph id="id4B7E3AB79E8544C7807ECC8F5CD80D66"><enum>(1)</enum><header>In general</header><text>The occupational tax shall be imposed—</text> <subparagraph id="idE18F8C95F8BC4D53B07D11BC7566B661"><enum>(A)</enum><text>as of on the first day of July in each year, or</text> </subparagraph><subparagraph id="idD18F1010F4554982B14A76662CF93621"><enum>(B)</enum><text>on commencing any trade or business on which such tax is imposed.</text> </subparagraph></paragraph><paragraph id="idCEC1B99D4B49481C85E104FE3DAC88EF"><enum>(2)</enum><header>Period</header><text>In the case of a tax imposed under subparagraph (A) of paragraph (1), the occupational tax shall be reckoned for 1 year, and in the case of subparagraph (B) of such paragraph, it shall be reckoned proportionately, from the first day of the month in which the liability to such tax commenced, to and including the 30th day of June following.</text> </paragraph></subsection><subsection id="id4870B55FA31A46128F7C89014A0A758A"><enum>(c)</enum><header>Method of payment</header> <paragraph id="id185D70075096485AA8151E32F0CA7D1D"><enum>(1)</enum><header>Payment by return</header><text>The occupational tax shall be paid on the basis of a return under such regulations as the Secretary shall prescribe.</text> </paragraph><paragraph id="id8B240F2ECAC34506A6E4671E8CFF391B"><enum>(2)</enum><header>Stamp denoting payment of tax</header><text>After receiving a properly executed return and remittance of any occupational tax, the Secretary shall issue to the taxpayer an appropriate stamp as a receipt denoting payment of the tax. This paragraph shall not apply in the case of a return covering liability for a past period.</text> </paragraph></subsection></section><section id="id851A0B02FCB742F4ADDC78CFF5C12F84"><enum>5913.</enum><header>Provisions relating to liability for occupational taxes</header> <subsection id="id2431F4C03E2A4F87952863BF0CBA19EB"><enum>(a)</enum><header>Partners</header><text>Any number of persons doing business in partnership at any one place shall be required to pay a single occupational tax.</text> </subsection><subsection id="id625109284F6A44FF9014BA035B14ECCB"><enum>(b)</enum><header>Different businesses of same ownership and location</header><text>Whenever more than one of the pursuits or occupations described in this subchapter are carried on in the same place by the same person at the same time, except as otherwise provided in this subchapter, the occupational tax shall be paid for each according to the rates severally prescribed.</text> </subsection><subsection id="id22EBEE0E56C5433C9450DF949E326156"><enum>(c)</enum><header>Businesses in more than one location</header> <paragraph id="id9B8494FC5988452EB8677BB54B90AE70"><enum>(1)</enum><header>Liability for tax</header><text>The payment of the occupational tax shall not exempt from an additional occupational tax the person carrying on a trade or business in any other place than that stated in the register kept in the office of the official in charge of the internal revenue district.</text> </paragraph><paragraph id="idA5C868E096BF4772925C3F313122415C"><enum>(2)</enum><header>Storage</header><text>Nothing contained in paragraph (1) shall require imposition of an occupational tax for the storage of marijuana products at a location other than the place where such products are sold or offered for sale.</text> </paragraph><paragraph id="id0F9B9B31817C47CCB5935CA06152150F"><enum>(3)</enum><header>Place</header> <subparagraph id="id4760D9CF9AA54D7BA9CD77078D1F1173"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>place</term> means the entire office, plant or area of the business in any one location under the same proprietorship.</text> </subparagraph><subparagraph id="idDA207E8887524585A77E3176B366457C"><enum>(B)</enum><header>Divisions</header><text>For purposes of this paragraph, any passageways, streets, highways, rail crossings, waterways, or partitions dividing the premises shall not be deemed sufficient separation to require an additional occupational tax, if the various divisions are otherwise contiguous.</text> </subparagraph></paragraph></subsection><subsection id="id858565BDA63A45DFBA2F2CA3C28F9A9A"><enum>(d)</enum><header>Death or change of location</header> <paragraph id="id4BDF38B322C64430A8EBEF5CDA565176"><enum>(1)</enum><header>In general</header><text>In addition to the person who has paid the occupational tax for the carrying on of any business at any place, any person described in paragraph (2) may secure the right to carry on, without incurring any additional occupational tax, the same business at the same place for the remainder of the taxable period for which the occupational tax was paid.</text> </paragraph><paragraph id="id64C935A8AF7F441BAF069FD060BE9CEC"><enum>(2)</enum><header>Eligible persons</header><text>The persons described in this paragraph are the following:</text> <subparagraph id="id9496EFDCE0AB4430B5F08CE78CE25AD0"><enum>(A)</enum><text>The surviving spouse or child, or executor or administrator or other legal representative, of a deceased taxpayer.</text> </subparagraph><subparagraph id="idB4614B0094794D6397706B53DA724247"><enum>(B)</enum><text>A husband or wife succeeding to the business of his or her living spouse.</text> </subparagraph><subparagraph id="idABEED762B9B0430D94427EAC13CA070A"><enum>(C)</enum><text>A receiver or trustee in bankruptcy, or an assignee for benefit of creditors.</text> </subparagraph><subparagraph id="id0CE2502D54CD45E1AF0F5CC894D529EA"><enum>(D)</enum><text>The partner or partners remaining after death or withdrawal of a member of a partnership.</text> </subparagraph></paragraph><paragraph id="idC27169C1445548F797098388084737D7"><enum>(3)</enum><header>Change of location</header><text>When any person moves to any place other than the place for which occupational tax was paid for the carrying on of any business, such person may secure the right to carry on, without incurring additional occupational tax, the same business at the new location for the remainder of the taxable period for which the occupational tax was paid. To secure the right to carry on the business without incurring additional occupational tax, the successor, or the person relocating their business, must register the succession or relocation with the Secretary in accordance with regulations prescribed by the Secretary.</text> </paragraph></subsection><subsection id="idBC48D856842E40AA8148A4116C1B2D9A"><enum>(e)</enum><header>Federal agencies or instrumentalities</header><text>Any tax imposed by this subchapter shall apply to any agency or instrumentality of the United States unless such agency or instrumentality is granted by statute a specific exemption from such tax.</text> </subsection></section><section id="id96CF2F729C124E73B70923C01DDF2163"><enum>5914.</enum><header>Application to State laws</header><text display-inline="no-display-inline">The payment of any tax imposed by this subchapter for carrying on any trade or business shall not be held to—</text> <paragraph id="id644540EE3865402F9021FA280B29CE2E"><enum>(1)</enum><text display-inline="yes-display-inline">exempt any person from any penalty or punishment provided by the laws of any State for carrying on such trade or business within such State, or in any manner to authorize the commencement or continuance of such trade or business contrary to the laws of such State or in places prohibited by municipal law, or</text> </paragraph><paragraph id="id55A90A2D14AE4DB5BA531397D39F4F6E"><enum>(2)</enum><text display-inline="yes-display-inline">prohibit any State from placing a duty or tax on the same trade or business, for State or other purposes.</text> </paragraph></section></subchapter><subchapter id="id9679B9F34ACD450BB102785E89944AF9" style="OLC"><enum>C</enum><header>Bond and Permits</header><toc><toc-entry idref="id15BF47EED5964808805127A5F500A738" level="section">Sec. 5921. Establishment and bond.</toc-entry><toc-entry idref="id566F4E89B91B4624A95035F030C3F390" level="section">Sec. 5922. Application for permit.</toc-entry><toc-entry idref="idBA4849270CF84860B5602A4BA37C3F32" level="section">Sec. 5923. Permit.</toc-entry></toc> <section id="id15BF47EED5964808805127A5F500A738"><enum>5921.</enum><header>Establishment and bond</header> <subsection id="id9D3624B0C0804C3DB20949C9FA61132F"><enum>(a)</enum><header>Prohibition on production outside of bonded marijuana production facility</header> <paragraph id="idFC2D3D58D53240B89D954AAF3938D516"><enum>(1)</enum><header>In general</header><text>Except as authorized by the Secretary or on the bonded premises of a marijuana production facility duly authorized to produce marijuana products according to law—</text> <subparagraph id="id648C1063E8AB4E42AEDD188882D7FAD0"><enum>(A)</enum><text>no marijuana may be planted, cultivated, harvested, or grown in any building or on any premises, and</text> </subparagraph><subparagraph id="id1245728C41D44EDE89C6AD1AEB4ECF6A"><enum>(B)</enum><text>no marijuana product may be manufactured, compounded, converted, processed, prepared, or packaged in any building or on any premises.</text> </subparagraph></paragraph><paragraph id="id1A8FA2224DA7416CB08FF0F1EE065D4B"><enum>(2)</enum><header>Authorized producers only</header><text>No person other than a producer which has filed the bond required under subsection (b) and received a permit described in section 5923 may produce any marijuana product.</text> </paragraph></subsection><subsection id="id9812B20ED481486ABCCE756AE9E0B4AA"><enum>(b)</enum><header>Bond</header> <paragraph id="id54F594644DA945E182997031EEF5F29E"><enum>(1)</enum><header>When required</header><text>Every person, before commencing business as a producer or an export warehouse proprietor, shall file such bond, conditioned upon compliance with this chapter and regulations issued thereunder, in such form, amount, and manner as the Secretary shall by regulation prescribe. A new or additional bond may be required whenever the Secretary considers such action necessary for the protection of the revenue.</text> </paragraph><paragraph id="id3CC2442CAE8D48D4960EB47C13234844"><enum>(2)</enum><header>Approval or disapproval</header><text>No person shall engage in such business until he receives notice of approval of such bond. A bond may be disapproved, upon notice to the principal on the bond, if the Secretary determines that the bond is not adequate to protect the revenue.</text> </paragraph><paragraph id="id93402002320D4AF2903EDA2C367F2669"><enum>(3)</enum><header>Cancellation</header><text>Any bond filed hereunder may be canceled, upon notice to the principal on the bond, whenever the Secretary determines that the bond no longer adequately protects the revenue.</text> </paragraph></subsection></section><section id="id566F4E89B91B4624A95035F030C3F390"><enum>5922.</enum><header>Application for permit</header> <subsection id="idEC196093A88C4567A706443F6AD865AD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Every person, before commencing business as a marijuana enterprise, and at such other time as the Secretary shall by regulation prescribe, shall make application for the permit provided for in section 5923. The application shall be in such form as the Secretary shall prescribe and shall set forth, truthfully and accurately, the information called for on the form. Such application may be rejected and the permit denied if the Secretary, after notice and opportunity for hearing, finds that—</text> <paragraph id="idA99A2D63777C432D82D4432518604C68"><enum>(1)</enum><text>the premises on which it is proposed to conduct the marijuana enterprise are not adequate to protect the revenue,</text> </paragraph><paragraph id="id50706F22F3FE49D0A03DBADD5FBA4365"><enum>(2)</enum><text>the activity proposed to be carried out at such premises does not meet such minimum capacity or activity requirements as the Secretary may prescribe, or</text> </paragraph><paragraph id="idFBBED6C352904DF699F62E6BF67D1E1E"><enum>(3)</enum><text>such person (including, in the case of a corporation, any officer, director, or principal stockholder and, in the case of a partnership, a partner)—</text> <subparagraph id="id485796438A114664A429D4BBFCD9D585"><enum>(A)</enum><text>is, by reason of their business experience, financial standing, or trade connections or by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to marijuana or marijuana products, not likely to maintain operations in compliance with this chapter,</text> </subparagraph><subparagraph id="id32CCFB5B37894CE19EF1A0C416C934C5"><enum>(B)</enum><text>has been convicted of a felony violation of any provision of Federal or State criminal law relating to marijuana or marijuana products, or</text> </subparagraph><subparagraph id="id09C7A5F1D57B4553B40B59E9B68446A3"><enum>(C)</enum><text>has failed to disclose any material information required or made any material false statement in the application therefor.</text> </subparagraph></paragraph></subsection></section><section display-inline="no-display-inline" id="idBA4849270CF84860B5602A4BA37C3F32" section-type="subsequent-section"><enum>5923.</enum><header>Permit</header> <subsection id="id867791C73FD047928E8DF6EA569E17DE"><enum>(a)</enum><header>Issuance</header><text>A person shall not engage in business as a marijuana enterprise without a permit to engage in such business. Such permit, conditioned upon compliance with this chapter and regulations issued thereunder, shall be issued in such form and in such manner as the Secretary shall by regulation prescribe. A new permit may be required at such other time as the Secretary shall by regulation prescribe.</text> </subsection><subsection id="id6790F52578F74ED2A3012942C503EDF5"><enum>(b)</enum><header>Suspension or Revocation</header> <paragraph id="id28F25AEE3E9143C592C465C1BBCD8A94"><enum>(1)</enum><header>Show cause hearing</header><text>If the Secretary has reason to believe that any person holding a permit—</text> <subparagraph id="id6BA74339BCF34E3290A35D73453AFC21"><enum>(A)</enum><text>has not in good faith complied with this chapter, or with any other provision of this title involving intent to defraud,</text> </subparagraph><subparagraph id="id76F894F71C9A4BC49FBF5F512E6850A6"><enum>(B)</enum><text>has violated the conditions of such permit,</text> </subparagraph><subparagraph id="id8073F8C447A54614BD82FCFBECF28A3C"><enum>(C)</enum><text>has failed to disclose any material information required or made any material false statement in the application for such permit,</text> </subparagraph><subparagraph id="id39E1FF01F216460192F84ACB459AAA30"><enum>(D)</enum><text>has failed to maintain their premises in such manner as to protect the revenue,</text> </subparagraph><subparagraph id="id273A4D5584454FF9856C51978B4C2A00"><enum>(E)</enum><text>is, by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to marijuana, not likely to maintain operations in compliance with this chapter, or</text> </subparagraph><subparagraph id="id4C216798FE7B4C35AC4B4A478C270194"><enum>(F)</enum><text>has been convicted of a felony violation of any provision of Federal or State criminal law relating to marijuana or marijuana products,</text> </subparagraph><continuation-text continuation-text-level="paragraph">the Secretary shall issue an order, stating the facts charged, citing such person to show cause why their permit should not be suspended or revoked.</continuation-text></paragraph><paragraph id="id21473BCE06B04633AE202E21A935D2C9"><enum>(2)</enum><header>Action following hearing</header><text>If, after hearing, the Secretary finds that such person has not shown cause why their permit should not be suspended or revoked, such permit shall be suspended for such period as the Secretary deems proper or shall be revoked.</text> </paragraph></subsection><subsection id="idE929261BAB69447A875DF72FE6271703"><enum>(c)</enum><header>Information reporting</header><text>The Secretary may require—</text> <paragraph id="id9181BB4BFFD04830A02B6D0D9CE663FE"><enum>(1)</enum><text>information reporting by any person issued a permit under this section, and</text> </paragraph><paragraph id="idF44957D9EA2F4D4492DC2A3ADE88D2D8"><enum>(2)</enum><text>information reporting by such other persons as the Secretary deems necessary to carry out this chapter.</text> </paragraph></subsection><subsection id="id96FDB86B17FC44228E5D000FAACDF708"><enum>(d)</enum><header>Inspection or disclosure of information</header><text display-inline="yes-display-inline">For rules relating to inspection and disclosure of returns and return information, see section 6103(o).</text> </subsection></section></subchapter><subchapter id="id638C137F1BE14B48A948001A1E8E0DB5" style="OLC"><enum>D</enum><header>Operations</header><toc><toc-entry idref="idA677C14A57A4445688E45E52009ADEE7" level="section">Sec. 5931. Inventories, reports, and records.</toc-entry><toc-entry idref="id7EFB4DD7D7094D558E2B38D552E65AA6" level="section">Sec. 5932. Packaging and labeling.</toc-entry><toc-entry idref="idA68A64C5523744AFA41632DC0CD32F7D" level="section">Sec. 5933. Purchase, receipt, possession, or sale of marijuana products after removal.</toc-entry><toc-entry idref="id515DF3747B88486A95736CE18AB7F82E" level="section">Sec. 5934. Restrictions relating to marks, labels, notices, and packages.</toc-entry><toc-entry idref="idB8FC1FC29DDF4F45A149D388BBD02E83" level="section">Sec. 5935. Restriction on importation of previously exported marijuana products.</toc-entry></toc> <section id="idA677C14A57A4445688E45E52009ADEE7"><enum>5931.</enum><header>Inventories, reports, and records</header><text display-inline="no-display-inline">Every producer, importer, and export warehouse proprietor shall—</text> <paragraph id="id6BA261B47D2546B9A3132D5938AA88B6"><enum>(1)</enum><text display-inline="yes-display-inline">make a true and accurate inventory at the time of commencing business, at the time of concluding 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 inventories to be subject to verification by any internal revenue officer,</text> </paragraph><paragraph id="id1BB0514CBA2048279E4D7F94360BA24B"><enum>(2)</enum><text display-inline="yes-display-inline">make reports containing such information, in such form, at such times, and for such periods as the Secretary shall by regulation prescribe, and</text> </paragraph><paragraph id="idA1FD1A60AF7149579F1B3A6BB9BFE67D"><enum>(3)</enum><text>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.</text> </paragraph></section><section id="id7EFB4DD7D7094D558E2B38D552E65AA6"><enum>5932.</enum><header>Packaging and labeling</header> <subsection id="id95BCF4CC2C6D4722A78637D76EF5A0DD"><enum>(a)</enum><header>Packages</header><text>All marijuana products shall, before removal, be put up in such packages as the Secretary shall by regulation prescribe.</text> </subsection><subsection id="id6EE703CEDC444D34802E3FD174A8EA45"><enum>(b)</enum><header>Marks, labels, and notices</header><text>Every package of marijuana products shall, before removal, bear the marks, labels, and notices if any, that the Secretary by regulation prescribes.</text> </subsection><subsection id="idA8C54F8E15F041A2824580CFEB3FD1CF"><enum>(c)</enum><header>Lottery features</header><text>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.</text> </subsection><subsection id="idE6EB5643EE6F48FABB46BB13D84824C4"><enum>(d)</enum><header>Indecent or immoral material prohibited</header><text>No indecent or immoral picture, print, or representation shall be contained in, attached to, or stamped, marked, written, or printed on any package of marijuana products.</text> </subsection><subsection id="id2D5B2B721F4049B1999586E9E9A64A2A"><enum>(e)</enum><header>Exceptions</header><text>Subject to regulations prescribed by the Secretary, marijuana products may be exempted from subsections (a) and (b) if such products are—</text> <paragraph id="id7025F546355741EDA4EECADBEDF51B10"><enum>(1)</enum><text>for experimental purposes, or</text> </paragraph><paragraph id="id2AE3D9FD33104DC59E2D497BD7201608"><enum>(2)</enum><text>transferred to the bonded premises of another producer or export warehouse proprietor or released in bond from customs custody for delivery to a producer.</text> </paragraph></subsection></section><section id="idA68A64C5523744AFA41632DC0CD32F7D"><enum>5933.</enum><header>Purchase, receipt, possession, or sale of marijuana products after removal</header> <subsection id="idF1B3A830E32940A79FDDEB784476A657"><enum>(a)</enum><header>Restriction</header><text>No person shall—</text> <paragraph id="id5A4A034843414767A4FD21CA53DF7C10"><enum>(1)</enum><text>with intent to defraud the United States, purchase, receive, possess, offer for sale, or sell or otherwise dispose of, after removal, any marijuana products—</text> <subparagraph id="id723BB0FA1071459D91A6C18C516BC8B4"><enum>(A)</enum><text>upon which the tax has not been paid or determined in the manner and at the time prescribed by this chapter or regulations thereunder, or</text> </subparagraph><subparagraph id="id56E202E84CEC4F44B7BEEBCA0AC71B82"><enum>(B)</enum><text>which, after removal without payment of tax pursuant to section 5904, have been diverted from the applicable purpose or use specified in that section,</text> </subparagraph></paragraph><paragraph id="idD10A36B786B14B2EA18EC545735AAFCE"><enum>(2)</enum><text>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, labels, and notices, as required under such section, or</text> </paragraph><paragraph id="idDF98D4281D624AD884D08F91AAD9B539"><enum>(3)</enum><text>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, labels, and notices, as required under such section.</text> </paragraph></subsection><subsection id="id1554DBDB49084930B8CE4F1557406EA3"><enum>(b)</enum><header>Exception</header><text>Paragraph (3) of subsection (a) shall not prevent the sale or delivery of marijuana products directly to consumers from proper packages, nor apply to such articles when so sold or delivered.</text> </subsection><subsection id="idC7A9339213C043D4AAB93C7B2141A257"><enum>(c)</enum><header>Liability to tax</header><text>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.</text> </subsection></section><section id="id515DF3747B88486A95736CE18AB7F82E"><enum>5934.</enum><header>Restrictions relating to marks, labels, notices, and packages</header><text display-inline="no-display-inline">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 regulations thereunder, to appear on, or be affixed to, any package of marijuana products before such package is emptied.</text> </section><section id="idB8FC1FC29DDF4F45A149D388BBD02E83"><enum>5935.</enum><header>Restriction on importation of previously exported marijuana products</header> <subsection id="id630F33911AF74C90A43BA6FAC3133E50"><enum>(a)</enum><header>Export labeled marijuana products</header> <paragraph id="id3DF343DE66EA4F40997E9D8AD49592D1"><enum>(1)</enum><header>In general</header><text>Marijuana products produced in the United States and labeled for exportation under this chapter—</text> <subparagraph id="id7CB6D5695379497FBD713880295B8928"><enum>(A)</enum><text>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 accordance with section 5904,</text> </subparagraph><subparagraph id="id5AED240B9BF24C8D9F97CD476C41F4C2"><enum>(B)</enum><text>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 exemption provided in section 5904(d) or are returned to the original producer of such article as provided in section 5904(c), and</text> </subparagraph><subparagraph id="id7A26FDBEC52D4D1F86EBD523F5CA0A1F"><enum>(C)</enum><text>may not be sold or held for sale for domestic consumption in the United States unless such articles are removed from their export packaging and repackaged by the original producer into new packaging that does not contain an export label.</text> </subparagraph></paragraph><paragraph id="idC096D173D2C343B995B0CE7AF43DAA81"><enum>(2)</enum><header>Alterations by persons other than original producer</header><text>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 remove or conceal or attempt to remove or conceal (including by the placement of a sticker over) any export label.</text> </paragraph><paragraph id="idFE5406E75B264D98BCDFF2333612DB04"><enum>(3)</enum><header>Exports include shipments to Puerto Rico</header><text>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 reference to shipment to the Commonwealth of Puerto Rico.</text> </paragraph></subsection><subsection id="id5179C952CFC4442891373B60772F0112"><enum>(b)</enum><header>Export label</header><text>For purposes of this section, an article is labeled for export or contains an export label if it bears the mark, label, or notice required under section 5904(b).</text> </subsection></section></subchapter><subchapter id="H7FBC02847ED044D8BE3E8568CAE495EA"><enum>E</enum><header>Penalties</header><toc container-level="subchapter-container" idref="H7FBC02847ED044D8BE3E8568CAE495EA" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"><toc-entry idref="H6616E33D60784239BC547F264CD6F068" level="section">Sec. 5941. Civil penalties.</toc-entry><toc-entry idref="H8E403D8C1C4141C6A925D666C4763E3E" level="section">Sec. 5942. Criminal penalties.</toc-entry></toc> <section id="H6616E33D60784239BC547F264CD6F068"><enum>5941.</enum><header>Civil penalties</header> <subsection id="HF6BAC8A9BF7544FAB21F5159AC442D69"><enum>(a)</enum><header>Omitting Things Required or Doing Things Forbidden</header><text>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 prohibited 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 section 6651 or 6653 or part II of subchapter A of chapter 68 may be collected from such person by assessment.</text> </subsection><subsection id="H1578135C76A64F2EBFC9CA5A068CEB3F"><enum>(b)</enum><header>Failure To Pay Tax</header><text>Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or regulations, shall, in addition to any other penalty provided in this title, be liable to a penalty of 10 percent of the tax due but unpaid.</text> </subsection><subsection id="H06056A1524DF472798B01AC63F10B27C"><enum>(c)</enum><header>Sale of Marijuana or Marijuana Products for Export</header> <paragraph id="HD076D8BAF06F4613B55896D66037761D"><enum>(1)</enum><text>Every person who sells, relands, or receives within the jurisdiction of the United States any marijuana products which have been labeled or shipped for exportation under this chapter,</text> </paragraph><paragraph id="HE6FAA1C3CA464E54AE2F2AF1B4C809CB"><enum>(2)</enum><text>every person who sells or receives such relanded marijuana products, and</text> </paragraph><paragraph id="H3720B874734D4DD8BA035F3F3800C734"><enum>(3)</enum><text>every person who aids or abets in such selling, relanding, or receiving,</text> </paragraph><continuation-text continuation-text-level="subsection">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 marijuana products from the place where relanded, shall be forfeited to the United States.</continuation-text></subsection><subsection id="H39FC696704D3437AA328912D10F6493B"><enum>(d)</enum><header>Applicability of Section 6665</header><text>The penalties imposed by subsections (b) and (c) shall be assessed, collected, and paid in the same manner as taxes, as provided in section 6665(a).</text> </subsection><subsection id="H9B56DE24EF3F46D78949686F87A374D8"><enum>(e)</enum><header>Cross References</header><text>For penalty for failure to make deposits or for overstatement of deposits, see section 6656.</text> </subsection></section><section id="H8E403D8C1C4141C6A925D666C4763E3E"><enum>5942.</enum><header>Criminal penalties</header> <subsection id="H94BDB840C8C34FE99C5F85909FEB02B2"><enum>(a)</enum><header>Fraudulent Offenses</header><text>Whoever, with intent to defraud the United States—</text> <paragraph id="HD1EC82A56B0A469F9B276F36C785AB57"><enum>(1)</enum><text>engages in business as a marijuana enterprise without filing the application and obtaining the permit where required by this chapter or regulations thereunder,</text> </paragraph><paragraph id="H7A56C46FF7144DAE92ED191E2A51479C"><enum>(2)</enum><text>fails to keep or make any record, return, report, or inventory, or keeps or makes any false or fraudulent record, return, report, or inventory, required by this chapter or regulations thereunder,</text> </paragraph><paragraph id="HBE80A18DBE3D414DAE6C006A753DDBE2"><enum>(3)</enum><text>refuses to pay any tax imposed by this chapter, or attempts in any manner to evade or defeat the tax or the payment thereof,</text> </paragraph><paragraph id="HF12C7CA797EB47B08D582C0371510B92"><enum>(4)</enum><text>sells or otherwise transfers, contrary to this chapter or regulations thereunder, any marijuana products subject to tax under this chapter, or</text> </paragraph><paragraph id="H56D62EF39D744F4B902EC6A0F0F28B4E"><enum>(5)</enum><text display-inline="yes-display-inline">with intent to defraud the United States, purchases, receives, possesses, offers for sale, or sells or otherwise disposes of, any marijuana product—</text> <subparagraph id="H6FA0B86C413D4DA1BA50BDBE44A40114"><enum>(A)</enum><text>upon which the tax has not been paid or determined in the manner and at the time prescribed by this chapter or regulations thereunder, or</text> </subparagraph><subparagraph id="HBFC395FBF176443FA60C1F9D22689532"><enum>(B)</enum><text>which, without payment of tax pursuant to section 5904, have been diverted from the applicable purpose or use specified in that section,</text> </subparagraph></paragraph><continuation-text continuation-text-level="subsection">shall, for each such offense, be fined not more than $10,000, or imprisoned not more than 5 years, or both.</continuation-text></subsection><subsection id="HEF3D9355B22E4475BB1B6C19645CAE97"><enum>(b)</enum><header>Offenses relating to retail transactions</header><text>Any retailer who sells, in any single transaction, more than 1 ounce of any marijuana product (or in the case of any marijuana product containing a marijuana 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.</text> </subsection><subsection id="id879AB44471D3453C94F0DB45BFB64EE3"><enum>(c)</enum><header>Other Offenses</header><text>Whoever, otherwise than as provided in subsections (a) and (b) and section 5911(b), violates any provision of this chapter, or of regulations prescribed thereunder, shall, for each such offense, be fined not more than $1,000, or imprisoned not more than 1 year, or both.</text> </subsection><subsection id="H75DF775E176E436A8C97A2CC1A4668F1"><enum>(d)</enum><header>Liability to tax</header><text display-inline="yes-display-inline">Any person who possesses marijuana products in violation of subsection (a) shall be liable for a tax equal to the tax on such articles.</text></subsection></section></subchapter></chapter><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="HB766980B23954146B0CA3E7CD199FB37"><enum>(b)</enum><header>Study</header><text display-inline="yes-display-inline">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—</text> <paragraph commented="no" id="HDC6154C76DCC491E8E72EEE750B542DF"><enum>(1)</enum><text>conduct a study concerning the characteristics of the marijuana industry, including the number 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</text> </paragraph><paragraph commented="no" id="HA7685F244E2F4BA5B1E06412FEE77BE0"><enum>(2)</enum><text>submit to Congress recommendations to improve the regulation of the industry and the administration of the related tax.</text> </paragraph></subsection><subsection id="HCD663DDC69494B2C972E9AB7D7D1A207"><enum>(c)</enum><header>Conforming Amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6103">Section 6103(o)(1)(A)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>and firearms</quote> and inserting <quote>firearms, and marijuana</quote>.</text> </subsection><subsection id="H435A0DD6449A4B8B95480B00FE2DC9B4"><enum>(d)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="H6ED0ECFD685A46AEAB736BF83A07BBFD" style="OLC"><toc container-level="quoted-block-container" idref="H49ECBDC1DD3849B4A075E99E3A1F0408" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"><toc-entry idref="H2766BE71ED1B44A99C0B606C4A7BF9CD" level="chapter">Chapter 56. Marijuana Products</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HA318CA17B8F9481A94936FD620030F54"><enum>(e)</enum><header>Effective date</header> <paragraph id="HD7DAD977B9B345309A35B6D1225C6DF9"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to sales, and applications for permits under <external-xref legal-doc="usc" parsable-cite="usc/26/5922">section 5922</external-xref> of the Internal Revenue Code of 1986 (as added by subsection (a)), after 180 days after the date of the enactment of this Act.</text> </paragraph><paragraph id="H35BC1EEE89AB4DAFBB04DB71C82BECA3"><enum>(2)</enum><header>Special rules for existing businesses</header><text>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 requirements 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.</text> </paragraph></subsection></section><enum>II</enum><header>Regulation</header> <subtitle id="HDE60C646CADC485A8A7EF5AAB064C4B7"><enum>A</enum><header>Amendments To decriminalize marijuana at the Federal level</header> <section id="HBA214781C52E452EBDEBA74EFE29A6B9"><enum>201.</enum><header>Decriminalization of marijuana</header> <subsection id="H7044175D5CF94E03AD1D4544E8C06CC4"><enum>(a)</enum><header>Removal from schedule of controlled substances</header><text display-inline="yes-display-inline">Notwithstanding any other provision of the Controlled Substances Act (<external-xref legal-doc="usc" parsable-cite="usc/21/801">21 U.S.C. 801</external-xref> et seq.), the Attorney General shall, not later than 60 days after the date of the enactment of this Act, issue a final order that removes marijuana in any form from all schedules under section 202(c) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/21/812">21 U.S.C. 812(c)</external-xref>).</text> </subsection><subsection display-inline="no-display-inline" id="H9B7B775AAEEB4EBD9195F4D0BF96C9A0"><enum>(b)</enum><header>Conforming amendment To remove legislative deadwood</header><text display-inline="yes-display-inline">Subsection (c) of section 202 of the Controlled Substances Act (<external-xref legal-doc="usc" parsable-cite="usc/21/812">21 U.S.C. 812</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H03BA5DC3696E4609B9346AC586110FFC" style="OLC"> <subsection id="H5E0ED517D8CD40C8959D239F6C295C69"><enum>(c)</enum><header>Cross reference to schedules of Controlled Substances</header><text display-inline="yes-display-inline">Schedules I, II, III, IV, and V shall consist of the drugs and other substances (by whatever official name, common or usual name, chemical name, or brand name designated) that are set forth in the respective schedules in part 1308 of title 21, Code of Federal Regulations, as they may be amended from time to time, or in any successor regulation.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H8E24555B41B5444EADDF92473E622D5B"><enum>202.</enum><header>Application of the Controlled Substances Act and Controlled Substances Import and Export Act to marijuana</header><text display-inline="no-display-inline">Part A of the Controlled Substances Act (<external-xref legal-doc="usc" parsable-cite="usc/21/801">21 U.S.C. 801</external-xref> et seq.) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HB2D9D1D2B1A04239819C9B8BE22B492A" style="OLC"> <section id="H1F1726DEC7A44649BA43CD9D95CFE850"><enum>103.</enum><header>Application to marihuana</header> <subsection id="HF4DC82592A534AC896449AD4D74C753A"><enum>(a)</enum><header>General nonapplication</header><text display-inline="yes-display-inline">Except as provided in this section, this title and title III do not apply to marihuana.</text> </subsection><subsection id="HF15DE6C5C1C046C783F02352CE58DC04"><enum>(b)</enum><header>Exception: prohibition on certain transportations and shipments</header><text display-inline="yes-display-inline">It shall be unlawful to ship or transport marihuana from any place outside a State, territory, or district of the United States, or other place noncontiguous to but subject to the jurisdiction of the United States, into that State, territory, or district of the United States, or place, when such marihuana is intended by any person interested therein to be received, possessed, sold, or in any manner used, in violation of any law of such State, territory, district, or place.</text> </subsection><subsection commented="no" id="H0F9A5BD8D4424076A1F78E3C7BB0F22F"><enum>(c)</enum><header>Penalty</header><text display-inline="yes-display-inline">Whoever knowingly violates subsection (b) shall be fined under title 18, United States Code, or imprisoned not more than one year, or both.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HE6D20FCBD38645BC88AC18116F866D59"><enum>203.</enum><header>Conforming and ancillary amendments</header> <subsection id="H5B5CA4372EBF4C9CA216B8FB050983ED"><enum>(a)</enum><header>Modification of definition of <quote>felony drug offense</quote></header><text display-inline="yes-display-inline">Section 102(44) of the Controlled Substances Act (<external-xref legal-doc="usc" parsable-cite="usc/21/802">21 U.S.C. 802(44)</external-xref>) is amended by striking <quote>marihuana,</quote>.</text> </subsection><subsection id="HF95B7F1BCB0A489A83203F49C9FA3A1F"><enum>(b)</enum><header>Elimination of marijuana penalty provisions</header><text display-inline="yes-display-inline">Part D of the Controlled Substances Act (<external-xref legal-doc="usc" parsable-cite="usc/21/841">21 U.S.C. 841</external-xref> et seq.) is amended—</text> <paragraph id="H06535478D3854E92ACAB5C9EEC19577A"><enum>(1)</enum><text>in section 401—</text> <subparagraph id="HCB71A15F9CAB486A815B0EBBB35448DA"><enum>(A)</enum><text>by striking subsection (b)(1)(A)(vii);</text> </subparagraph><subparagraph id="H5155B5F5F1304F979E505F4FC23FE681"><enum>(B)</enum><text>by striking subsection (b)(1)(B)(vii);</text> </subparagraph><subparagraph id="H7A1D0AAC001D46A5937AD3222DF65143"><enum>(C)</enum><text>by striking subsection (b)(1)(D); and</text> </subparagraph><subparagraph id="H833961CAC403482B8243493E704DF9F2"><enum>(D)</enum><text>by striking subsection (b)(4);</text> </subparagraph></paragraph><paragraph id="H9B04A0BCCE7246BDBC03A35FCFB8D5CC"><enum>(2)</enum><text>in section 402(c)(2)(B), by striking <quote>marihuana,</quote>;</text> </paragraph><paragraph id="H34711CFE55BC4C9098D68490DA4BF3CC"><enum>(3)</enum><text>in section 403(d)(1), by striking <quote>marihuana,</quote>;</text> </paragraph><paragraph id="H1B14F08FBDD942C0B75ACF5B92BAB265"><enum>(4)</enum><text>in section 418(a), by striking the last sentence;</text> </paragraph><paragraph id="HD7B7A61DB86E466EA28DD46FE41D0FBC"><enum>(5)</enum><text>in section 419(a), by striking the last sentence;</text> </paragraph><paragraph id="H61FD98488901494CB7D72AD1BC5ABC5B"><enum>(6)</enum><text>in section 422(d), in the matter preceding paragraph (1), by striking <quote>marijuana,</quote>; and</text> </paragraph><paragraph id="H193E044A17694501B846DBF1A884576D"><enum>(7)</enum><text>in section 422(d)(5), by striking <quote>, such as a marihuana cigarette,</quote>.</text> </paragraph></subsection><subsection id="H535F9111A2654CD1B904F8E943A633FE"><enum>(c)</enum><header>Removal of prohibition on import and export</header><text display-inline="yes-display-inline">Section 1010 of the Controlled Substances Import and Export Act (<external-xref legal-doc="usc" parsable-cite="usc/21/960">21 U.S.C. 960</external-xref>) is amended—</text> <paragraph id="H8CDFAB83B384487AAD836DB86BEF45D4"><enum>(1)</enum><text>by striking subparagraph (G) of subsection (b)(1);</text> </paragraph><paragraph id="HA79D27C314FA4C18B3B310D46919CCD1"><enum>(2)</enum><text>by striking subparagraph (G) of subsection (b)(2); and</text> </paragraph><paragraph id="HCA25EBFC87514F778824F7970E1FA1C1"><enum>(3)</enum><text>by striking paragraph (4) of subsection (b).</text> </paragraph></subsection><subsection id="H83F52333368B4B40AD471BBF5E802200"><enum>(d)</enum><header>Limiting the application of the National Forest System Drug Control Act of 1986 to controlled substances other than marijuana</header><text>The National Forest System Drug Control Act of 1986 is amended—</text> <paragraph id="H902B8742A78E4184AB19A788F650CB2C"><enum>(1)</enum><text>in section 15002(a) (<external-xref legal-doc="usc" parsable-cite="usc/16/559b">16 U.S.C. 559b(a)</external-xref>) by striking <quote>marijuana and other</quote>;</text> </paragraph><paragraph id="HFD086C20DA4B4B228D36240D663D70F5"><enum>(2)</enum><text>in section 15003(2) (<external-xref legal-doc="usc" parsable-cite="usc/16/559c">16 U.S.C. 559c(2)</external-xref>) by striking <quote>marijuana and other</quote>; and</text> </paragraph><paragraph id="H195A54D5E4834DFC931B547EDE8D0AF7"><enum>(3)</enum><text>in section 15004(2) (<external-xref legal-doc="usc" parsable-cite="usc/16/559d">16 U.S.C. 559d(2)</external-xref>) by striking <quote>marijuana and other</quote>.</text> </paragraph></subsection><subsection commented="no" id="H93E214725BEC40338F8308E5E6D9724A"><enum>(e)</enum><header>Interception of communications</header><text>Section 2516 of title 18, United States Code, is amended—</text> <paragraph id="H2647B18FC83144CAAAF25C6D055290F1"><enum>(1)</enum><text>in subsection (1)(e), by striking <quote>marihuana,</quote>; and</text> </paragraph><paragraph id="H4D2F336D28334D6590871ED64554FD38"><enum>(2)</enum><text>in subsection (2) by striking <quote>marihuana,</quote>.</text> </paragraph></subsection><subsection id="H60FB505C17AE4D92B0D9C796437585C0"><enum>(f)</enum><header>National youth anti-Drug media campaign</header><text display-inline="yes-display-inline">Section 709 of the Office of National Drug Control Policy Reauthorization Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/21/1708">21 U.S.C. 1708</external-xref>) is amended by striking subsection (j) (relating to prevention of marijuana use).</text> </subsection></section></subtitle><subtitle id="H69C7E01C75E643379B8C8FB830D7CBD9"><enum>B</enum><header>Federal Marijuana Licensing and Related Matters</header> <section id="HB1F1DAFED4EA4B1BA613392652CDA391"><enum>211.</enum><header>Federal marijuana administration</header><text display-inline="no-display-inline">The Federal Alcohol Administration Act (<external-xref legal-doc="usc" parsable-cite="usc/27/201">27 U.S.C. 201</external-xref> et seq.) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H9E3BD12F98F54B5DBCC18F664BB11A6D" style="OLC"> <title id="H6AE8CFA3352D4453A7B97EE55A3BAFF5"><enum>III</enum><header>Marijuana</header> <section id="HCBB0F5FFF0FF4E9A8476A8D9633D4DC7"><enum>301.</enum><header>Unlawful businesses without marijuana permit</header> <subsection commented="no" id="HD8503ED2C1A64B11B30FC59B777347D4"><enum>(a)</enum><header>Import</header><text display-inline="yes-display-inline">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 <quote>Secretary</quote>)—</text> <paragraph commented="no" id="H3FC0CB1311864568B5541891E4C1775A"><enum>(1)</enum><text>to engage in the business of importing marijuana into the United States; or</text> </paragraph><paragraph commented="no" id="HCF196363B9AA420187528EA0C16CCF6A"><enum>(2)</enum><text>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, marijuana so imported.</text> </paragraph></subsection><subsection id="HF177C3B8F3094EF1B0E91402E3501447"><enum>(b)</enum><header>Manufacture and sale</header><text>It shall be unlawful, except pursuant to a permit issued under this title by the Secretary—</text> <paragraph id="HE873CCB93C714C16B63E74B603BF1093"><enum>(1)</enum><text>to engage in the business of cultivating, producing, manufacturing, packaging, or ware­hous­ing marijuana; or</text> </paragraph><paragraph id="HE7DAD91481674CB8998F68A786FB9606"><enum>(2)</enum><text>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, marijuana so cultivated, produced, manufactured, packaged, or warehoused.</text> </paragraph></subsection><subsection id="HF83430FF62594D8088EF6A6AEFF96E62"><enum>(c)</enum><header>Resale</header><text>It shall be unlawful, except pursuant to a permit issued under this title by the Secretary—</text> <paragraph id="H6B410301E6494BC5BC891E4C82003553"><enum>(1)</enum><text>to engage in the business of purchasing marijuana for resale at wholesale; or</text> </paragraph><paragraph id="HD5792BB7B2D642129D2C0DF15D5DEC42"><enum>(2)</enum><text>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 indirectly or through an affiliate, marijuana so purchased.</text> </paragraph></subsection><subsection id="HE9BE0C59EBD94C239B4B695724188B6D"><enum>(d)</enum><header>Remedies for violations</header> <paragraph id="HB008CE4ACC2146988456AF7E000A8691"><enum>(1)</enum><header>Criminal fine</header> <subparagraph id="H37AEF51593F342728F02C8A9D81BFB1F"><enum>(A)</enum><header>Generally</header><text>Whoever violates this section shall be fined not more than $1,000.</text> </subparagraph><subparagraph id="H871667DB9E224593899300AAF402C162"><enum>(B)</enum><header>Settlement in compromise</header><text>The Secretary may decide not to refer a violation of this section to the Attorney General for prosecution but instead to collect a payment from the violator of no more than $500 for that violation.</text> </subparagraph></paragraph><paragraph id="H70132444FC3640D3A76098AEAE7B3A50"><enum>(2)</enum><header>Civil Action for relief</header><text display-inline="yes-display-inline">The Attorney General may, in a civil action, obtain appropriate relief to prevent and restrain a violation of this title.</text> </paragraph></subsection></section><section id="HE1BF0BB5C7C34D0782AEA94B39F17A85"><enum>302.</enum><header>Procedure for issuance of marijuana permits</header> <subsection id="H8BBAA05E98964D23848643F6892F2095"><enum>(a)</enum><header>Who entitled to permit</header> <paragraph id="H886C9B3068184305A3BA3BD3B42AC50C"><enum>(1)</enum><header>Generally</header><text display-inline="yes-display-inline">The Secretary shall issue a permit for operations requiring a permit under section 301 unless the Secretary finds that—</text> <subparagraph id="HD2EBEFA9A06B4AE08EBF3C971832748D"><enum>(A)</enum><text display-inline="yes-display-inline">the applicant (or if the applicant is a corporation, any of its officers, directors, or principal stockholders) has been convicted of a disqualifying offense;</text> </subparagraph><subparagraph id="H6091C7F37C1D4F3F99C46FED043D9210"><enum>(B)</enum><text>the applicant is, by reason of business 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; or</text> </subparagraph><subparagraph id="HF549B3B87D994403800627AB38401A96"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H02B20CE4CB6A45448EBFF960F5C49619"><enum>(2)</enum><header>Disqualifying offenses</header><text>For the purposes of paragraph (1)—</text> <subparagraph id="H9E84C0238C6948B9AE2EA9BF9B5A8C77"><enum>(A)</enum><header>Generally</header><text>Except as provided in subparagraph (B) a disqualifying offense is an offense related to the production, consumption, or sale of marijuana that is—</text> <clause id="H187C1604DD1948369EF6887A0CA55F42"><enum>(i)</enum><text>a felony under Federal or State law, if the conviction occurred not later than 5 years before the date of the application; or</text> </clause><clause id="HD182490CC85F454192092B019D3AC2C6"><enum>(ii)</enum><text display-inline="yes-display-inline">a misdemeanor under Federal law, if the conviction occurred not later than 3 years before the date of the application.</text> </clause></subparagraph><subparagraph id="HF285E6453DAF49FAA52B3151C9B101D9"><enum>(B)</enum><header>Excluded offenses</header><text>A disqualifying offense does not include a Federal or State offense based on conduct that—</text> <clause id="H1989D806920F42638D86F067A732DEF1"><enum>(i)</enum><text>was legal under State law in the State when and where the conduct took place; or</text> </clause><clause id="HC5FD1A213FD84F778CD11312C560AA3A"><enum>(ii)</enum><text>is, as of the date of the application, no longer an offense in that State.</text> </clause></subparagraph></paragraph></subsection><subsection id="H7D684993610A4291A05ADE211E99B9D1"><enum>(b)</enum><header>Refusal of permit; hearing</header><text display-inline="yes-display-inline">If upon examination of any application for a permit the Secretary has reason to believe that the applicant is not entitled to 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. 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 which are the basis for the order.</text> </subsection><subsection id="H69CC6B704FA74049BFB3F1F2BD59339F"><enum>(c)</enum><header>Form of application</header> <paragraph id="H4A2B7E6511A749F697EB64563C323494"><enum>(1)</enum><header>Generally</header><text>The Secretary shall—</text> <subparagraph id="H802F96A418554D8090A461F4EADEA34E"><enum>(A)</enum><text>prescribe the manner and form of applications for permits under this title (including the facts to be set forth in the application);</text> </subparagraph><subparagraph id="H3D908A8518B34458A24E4D3970C279BA"><enum>(B)</enum><text>prescribe the form of such permits;</text> </subparagraph><subparagraph id="HAC99489888C7420ABC5047D6B484E932"><enum>(C)</enum><text>specify in any permit the authority conferred by the permit and the conditions of that permit in accordance with this title.</text> </subparagraph></paragraph><paragraph id="HFA23E28225B44B8C864E4275E37D3D49"><enum>(2)</enum><header>Separate types of applications and permits</header><text>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 marijuana, and with respect to the various classes of persons entitled to permits under this title.</text> </paragraph><paragraph id="HE3CFE6E7BF664F1888550047F0EAFE5D"><enum>(3)</enum><header>Disclaimer</header><text>The issuance of a permit under this title does not deprive the United States of any remedy for a violation of law.</text> </paragraph></subsection><subsection id="H25E31A851A5A4EF189FA4262E65AF063"><enum>(d)</enum><header>Conditions</header><text display-inline="yes-display-inline">A permit under this title shall be conditioned upon—</text> <paragraph id="H867F699176EE4ADC9E586EB5DC4C619A"><enum>(1)</enum><text>compliance with all other Federal laws relating to production, sale and consumption of marijuana, as well as compliance with all State laws relating to said activities in the State in which the permit applicant resides and does business; and</text> </paragraph><paragraph id="HC9DADDA024524B9FB920FF8ADEBB531F"><enum>(2)</enum><text>payment to the Secretary of a reasonable permit fee in an amount determined by the Secretary to be sufficient over time to offset the cost of implementing and overseeing all aspects of marijuana regulation by the Federal Government.</text> </paragraph></subsection><subsection id="H01DA0DD561714372AB56C087AB6350FE"><enum>(e)</enum><header>Revocation, suspension, and annulment</header> <paragraph id="H472354F3A4944AC099E3A5F2B2120955"><enum>(1)</enum><header>Generally</header><text display-inline="yes-display-inline">After due notice and opportunity for hearing, the Secretary may order a permit under this title—</text> <subparagraph id="HCC65C10E0483428AA46F2740187B05F0"><enum>(A)</enum><text>revoked or suspended for such period as the Secretary deems appropriate, if the Secretary finds that the permittee has willfully violated any of the conditions of the permit, but for a first violation of the conditions the permit shall be subject to suspension only;</text> </subparagraph><subparagraph id="H5D3077893ECD498292A205D0F596C3A3"><enum>(B)</enum><text>revoked if the Secretary finds that the permittee has not engaged in the operations authorized by the permit for a period of more than 2 years; or</text> </subparagraph><subparagraph id="H0E3A7CBE81D84204A6E7165D79BBFAD4"><enum>(C)</enum><text>annulled if the Secretary finds that the permit was procured through fraud, or misrepresentation, or concealment of material fact.</text> </subparagraph></paragraph><paragraph id="H874F08322787498B92EA9CBC540FC1B6"><enum>(2)</enum><header>Order to state basis for order</header><text>The order shall state the findings which are the basis for the order.</text> </paragraph></subsection><subsection id="HF6B7C3FC62244DDC9AEC97970DBF502B"><enum>(f)</enum><header>Service of orders</header><text display-inline="yes-display-inline">Each order of the Secretary with respect to any denial of application, suspension, revocation, annulment, or other proceedings, shall be served—</text> <paragraph id="H94E37B45BB174F14A77C1704A4CCD877"><enum>(1)</enum><text>in person by any officer or employee of the Secretary designated by him or any internal revenue or customs officer authorized by the Secretary for the purpose; or</text> </paragraph><paragraph id="H41675BCF771643CDA7C24D19FD8436EE"><enum>(2)</enum><text>by mailing the order by registered mail, addressed to the applicant or respondent at his last known address in the records of the Secretary.</text> </paragraph></subsection><subsection id="HDBDED9BE68574B18BD31AA54C83AA93B"><enum>(g)</enum><header>Duration</header> <paragraph id="HF7D1B54BE46E43F0B40C29862313C3D2"><enum>(1)</enum><header>General rule</header><text display-inline="yes-display-inline">Except as otherwise provided in this subsection, a permit issued under this title shall continue in effect until suspended, revoked, or annulled as provided in this title, or voluntarily surrendered.</text> </paragraph><paragraph id="H4E62BD0532FE4842AF7A8B7C551C9AB9"><enum>(2)</enum><header>Effect of transfer</header><text display-inline="yes-display-inline">If operations under a permit issued under this title are transferred, 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 period for a permit under this title for those operations. If such an application is made, the outstanding permit shall continue in effect until such application is finally acted on by the Secretary.</text> </paragraph><paragraph id="H1C2D564306F649D8A7CECBF04A71F62D"><enum>(3)</enum><header>Definition of transfer</header><text display-inline="yes-display-inline">For the purposes of this section, the term <term>transfer</term> means any change of ownership or control, whether voluntary or by operation of law.</text> </paragraph></subsection><subsection id="H80A7FEB19CCF4F8C88D6EA474D27D8DB"><enum>(h)</enum><header>Judicial review</header><text display-inline="yes-display-inline">A permittee or applicant for a permit under this title may obtain judicial review under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code, of the denial of the application of that applicant or, in the case of a permittee, the denial of an application by the transferee of that permittee.</text> </subsection><subsection id="H927E1A2E31EC4FE6874F3712291DBF6C"><enum>(i)</enum><header>Statute of limitations</header> <paragraph id="id4794C0789E9145D5AF00D1F63830F2EF"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">No proceeding for the suspension 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 Federal law, or, if no conviction has been had, more than 3 years after the violation occurred.</text> </paragraph><paragraph id="idDE08B759827C4FC0A01C3861D530EE65"><enum>(2)</enum><header>Compromise</header><text display-inline="yes-display-inline">No permit shall be suspended or revoked for a violation of any such condition thereof if the alleged violation of Federal law has been compromised by any officer of the Government authorized to compromise such violation.</text> </paragraph></subsection></section><section id="H608DBAC149DC4A41BBBA53FD27B9D0DC"><enum>303.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title—</text> <paragraph id="H3F126915EB6D46A181C322BFBB59DA45"><enum>(1)</enum><text>the term <term>marijuana</term> has the meaning given the term <term>marihuana</term> in section 102 of the Controlled Substances Act (<external-xref legal-doc="usc" parsable-cite="usc/21/802">21 U.S.C. 802</external-xref>); and</text> </paragraph><paragraph id="H902B11D6FE58445782B55BD1971C59BC"><enum>(2)</enum><text>the term <term>State</term> includes the District of Columbia, Puerto Rico, and any territory or possession of the United States.</text></paragraph></section>.
212.
Addition of marijuana to certain legal authorities relating to intoxicating liquors
(a)
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— (1)by inserting , or marijuana, after intoxicating liquors or liquids; and (2)by striking such liquids or liquors and inserting such liquids, liquors, or marijuana. (b)
Webb-Kenyon Act
The Act of March 1, 1913 (commonly known as the Webb-Kenyon Act; 27 U.S.C. 122), is amended— (1)by inserting marijuana or any after whatsoever, of any; and (2)by inserting marijuana or after which said. (c)
Victims of Trafficking and Violence Protection Act of 2000
Section 2 of the Victims of Trafficking and Violence Protection Act of 2000 (27 U.S.C. 122a) is amended— (1)in subsection (a)— (A)by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and (B)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 (2)in subsections (b) and (c), by inserting or marijuana after intoxicating liquor each place it appears.
C
Other Amendments Relating to Federal Authority Regarding Marijuana
221.
Food and Drug Administration
The Food and Drug Administration shall have the same authorities with respect to marijuana as the Administration has with respect to alcohol.
222.
Transferring agency functions with regard to marijuana
(a)
Transfer of jurisdiction from Drug Enforcement 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 marijuana enforcement, shall hereafter be administered by the Attorney General, acting through the Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives. (b)
Redesignation of Bureau of Alcohol, Tobacco, Firearms and Explosives as Bureau of Alcohol, Tobacco, Marijuana, Firearms and Explosives
(1)
Redesignation
The Bureau of Alcohol, Tobacco, Firearms and Explosives is hereby renamed the Bureau of Alcohol, Tobacco, Marijuana, Firearms and Explosives. (2)
References
Any reference to the Bureau 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, Marijuana, Firearms and Explosives. (c)
Redesignation of Alcohol and Tobacco Tax and Trade Bureau as Alcohol, Tobacco, and Marijuana 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, Tobacco, and Marijuana 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, document, record, or other paper of the United States shall be deemed to be a reference to the Alcohol, Tobacco, and Marijuana Tax and Trade Bureau.
223.
Unfair advertising practices
(a)
In general
It shall be unlawful for any person engaged in the business of importing marijuana into the United States, or cultivating, producing, manufacturing, packaging, or warehousing marijuana, or purchasing marijuana for resale at wholesale, directly or indirectly or through an affiliate, to publish or disseminate or cause to be published or disseminated by radio broadcast, 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 marijuana, if such advertisement is in, or is calculated to induce sales in, interstate or foreign commerce, or is disseminated by mail, unless such advertisement is in conformity with such regulations, to be prescribed by the Secretary of the Treasury, or the Secretary's delegate (referred to in this section as the Secretary), as will— (1)prevent deception of the consumer with respect 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 information as to the identity and quality of the products advertised, the characteristics thereof, and the person responsible for the advertisement; (3)prohibit statements that are disparaging of a competitor's products or are false, misleading, obscene, or indecent; and (4)prevent statements inconsistent with any statement on the labeling of the products advertised. (b)
Nonapplication to publishers and broadcasters
The prohibitions of this section and regulations thereunder shall not apply to the publisher of any newspaper, periodical, or other publication, or radio broadcaster, unless such publisher or radio broadcaster is engaged in the business of importing marijuana into the United States, or cultivating, producing, manufacturing, packaging, or warehousing marijuana, or purchasing marijuana for resale at wholesale, directly or indirectly or through an affiliate.
224.
Comptroller General review of laws and regulations
The Comptroller General shall conduct a review of Federal laws, regulations, and policies to determine if any changes in them are desirable in the light of the purposes and provisions of this Act. Not later than 2 years after the date of the enactment of this Act, the Comptroller General shall make to Congress and the relevant agencies such recommendations relating to the results of that review as the Comptroller General deems appropriate.
225.
Principal trade negotiating objective regarding marijuana, marijuana derivatives, and marijuana products
The principal negotiating objectives of the United States with respect to trade shall include the removal of unjustified foreign barriers to trade in marijuana, marijuana derivatives, and marijuana products.
<enum>III</enum><header>Funding</header> <section id="id245DA86E32534767A4E29D021A40B80F"><enum>301.</enum><header>Increased funding for the Alcohol, Tobacco, and Marijuana Tax and Trade Bureau</header><text display-inline="no-display-inline">In addition to any other amounts authorized to be appropriated to the Alcohol, Tobacco, and Marijuana Tax and Trade Bureau, there is authorized to be appropriated, for each of the fiscal years 2019 and 2020, $10,000,000, which shall be used to carry out this Act and the amendments made by this Act.</text></section>