#aafth ,,congress #b;d ,session ,h4 ,r4 #chhd ,,an ,,act ,to decriminalize and deschedule cannabis1 to provide for reinvestment in certain persons adversely impacted by the ,war on ,drugs1 to provide for expungement of certain cannabis offenses1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,marijuana ,opportunity ,reinvestment and ,expungement ,act of #bjbj or the ,,more ,act of #bjbj4 #b4 ,findings ,the ,congress finds as follows3 7#a7 ,the communities that have been most harmed by cannabis prohibition are benefiting the least from the legal marijuana marketplace4 7#b7 ,a legacy of racial and ethnic injustices1 compounded by the disproportionate collateral consequences of #hj years of cannabis prohibition enforcement1 now limits participation in the industry4 7#c7 #cf ,states1 the ,district of ,columbia1 ,puerto ,rico1 and ,guam have adopted laws allowing legal access to cannabis1 and #ae ,states1 the ,district of ,columbia1 and the ,commonwealth of the ,northern ,mariana ,islands have adopted laws legalizing cannabis for adult recreational use4 7#d7 ,a total of #dg ,states have reformed their laws pertaining to cannabis despite the ,schedule ,i status of marijuana and its ,federal criminalization4 7#e7 ,legal cannabis sales totaled #i4e billion in #bjag and are projected to reach #bc billion by #bjbb4 7#f7 ,according to the ,american ,civil ,liberties ,union 7,,aclu71 enforcing cannabis prohibition laws costs taxpayers approximately #c4f billion a year4 7#g7 ,the continued enforcement of cannabis prohibition laws results in over #fjj1jjj arrests annually1 disproportionately impacting people of color who are almost #d times more likely to be arrested for cannabis possession than their ,white counterparts1 despite equal rates of use across populations4 7#h7 ,people of color have been historically targeted by discriminatory sentencing practices resulting in ,black men receiving drug sentences that are #ac4a percent longer than sentences imposed for ,white men and ,latinos being nearly #f4e times more likely to receive a ,federal sentence for cannabis possession than non-,hispanic ,whites4 7#i7 ,in #bjac1 simple cannabis possession was the fourth most common cause of deportation for any offense and the most common cause of deportation for drug law violations4 7#aj7 ,fewer than one-fifth of cannabis business owners identify as minorities and only approximately #d percent are black4 7#aa7 ,applicants for cannabis licenses are limited by numerous laws1 regulations1 and exorbitant permit applications1 licensing fees1 and costs in these ,states1 which can require more than #gjj1jjj4 7#ab7 ,historically disproportionate arrest and conviction rates make it particularly difficult for people of color to enter the legal cannabis marketplace1 as most ,states bar these individuals from participating4 7#ac7 ,federal law severely limits access to loans and capital for cannabis businesses1 disproportionately impacting minority small business owners4 7#ad7 ,some ,states and municipalities have taken proactive steps to mitigate inequalities in the legal cannabis marketplace and ensure equal participation in the industry4 #c4 ,decriminalization of cannabis 7a7 ,cannabis removed from schedule of controlled substances 7#a7 ,removal in statute ,subsection 7c7 of schedule ,i of section #bjb7;c7 of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hab7 is amended-- 7,a7 by striking 7#aj7 ,marihuana42 and 7,b7 by striking 7#ag7 ,tetrahydrocannabinols1 except for tetrahydrocannabinols in hemp 7as defined in section #big;,a of the ,agricultural ,marketing ,act of #aidf744 7#b7 ,removal from schedule ,not later than #ahj days after the date of the enactment of this ,act1 the ,attorney ,general shall finalize a rulemaking under section #bja7;a77#b7 removing marihuana and tetrahydrocannabinols from the schedules of controlled substances4 ,for the purposes of the ,controlled ,substances ,act1 marihuana and tetrahydrocannabinols shall each be deemed to be a drug or other substance that does not meet the requirements for inclusion in any schedule4 ,a rulemaking under this paragraph shall be considered to have taken effect as of the date of enactment of this ,act for purposes of any offense committed1 case pending1 conviction entered1 and1 in the case of a juvenile1 any offense committed1 case pending1 and adjudication of juvenile delinquency entered before1 on1 or after the date of enactment of this ,act4 7b7 ,conforming amendments to controlled substances act ,the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hja et seq47 is amended-- 7#a7 in section #ajb7dd7 7#ba ,u4,s4,c4 #hjb7dd771 by striking marihuana12 7#b7 in section #dja7;b7 7#ba ,u4,s4,c4 #hda7;b77-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,a7-- 7,i7 in clause 7vi71 by inserting or after the semicolon2 7,,ii7 by striking clause 7vii72 and 7,,iii7 by redesignating clause 7viii7 as clause 7vii72 7ii7 in subparagraph 7,b7-- 7,i7 in clause 7vi71 by inserting or after the semicolon2 7,,ii7 by striking clause 7vii72 and 7,,iii7 by redesignating clause 7viii7 as clause 7vii72 7iii7 in subparagraph 7,c71 in the first sentence1 by striking subparagraphs 7,a71 7,b71 and 7,d7 and inserting subparagraphs 7,a7 and 7,b72 7iv7 by striking subparagraph 7,d72 7v7 by redesignating subparagraph 7,e7 as subparagraph 7,d72 and 7vi7 in subparagraph 7,d77i71 as so redesignated1 by striking subparagraphs 7,c7 and 7,d7 and inserting subparagraph 7,c72 7,b7 by striking paragraph 7#d72 and 7,c7 by redesignating paragraphs 7#e71 7#f71 and 7#g7 as paragraphs 7#d71 7#e71 and 7#f71 respectively2 7#c7 in section #djb7;c77#b77;,b7 7#ba ,u4,s4,c4 #hdb7;c77#b77;,b771 by striking 1 marihuana12 7#d7 in section #djc7;d77#a7 7#ba ,u4,s4,c4 #hdc7;d77#a771 by striking 1 marihuana12 7#e7 in section #dah7;a7 7#ba ,u4,s4,c4 #hei7;a771 by striking the last sentence2 7#f7 in section #dai7;a7 7#ba ,u4,s4,c4 #hfj7;a771 by striking the last sentence2 7#g7 in section #dbb7;d7 7#ba ,u4,s4,c4 #hfc7;d77-- 7,a7 in the matter preceding paragraph 7#a71 by striking marijuana12 and 7,b7 in paragraph 7#e71 by striking 1 such as a marihuana cigarette12 and 7#h7 in section #eaf7;d7 7#ba ,u4,s4,c4 #hhf7;d771 by striking section #dja7;b77#f7 each place the term appears and inserting section #dja7;b77#e74 7c7 ,other conforming amendments 7#a7 ,national forest system drug control act of #aihf ,the ,national ,forest ,system ,drug ,control ,act of #aihf 7#af ,u4,s4,c4 #eei;b et seq47 is amended-- 7,a7 in section #aejjb7;a7 7#af ,u4,s4,c4 #eei;b7a77 by striking marijuana and other2 7,b7 in section #aejjc7b7 7#af ,u4,s4,c4 #eei;c7#b77 by striking marijuana and other2 and 7,c7 in section #aejjd7b7 7#af ,u4,s4,c4 #eei;d7#b77 by striking marijuana and other4 7#b7 ,interception of communications ,section #beaf of title #ah1 ,united ,states ,code1 is amended-- 7,a7 in subsection 7#a77;e71 by striking marihuana12 and 7,b7 in subsection 7#b7 by striking marihuana4 7#c7 ,,fmcsa provisions 7,a7 ,conforming amendment ,section #cacja7e7 of title #di1 ,united ,states ,code1 is amended by striking section #cacjf1 and inserting sections #cacjf1 #cacjf;a1 and subsections 7b7 and 7c7 of section #cacaj14 7,b7 ,definition ,section #cacjf7;a7 of title #di1 ,united ,states ,code1 is amended-- 7i7 by striking means any substance and inserting the following3 means-- 7,a7 any substance 2 and 7ii7 by striking the period at the end and inserting 2 and 7,b7 any substance not covered under subparagraph 7,a7 that was a substance under such section as of ,december #a1 #bjah1 and specified by the ,secretary of ,transportation4 4 7,c7 ,disqualifications ,section #cacaj7;b7 of title #di1 ,united ,states ,code1 is amended by adding at the end the following3 7#c7 ,in this subsection and subsection 7c71 the term controlled substance has the meaning given such term in section #cacjf7;a74 4 7#d7 ,,faa provisions ,section #deaja of title #di1 ,united ,states ,code1 is amended-- 7,a7 by striking means any substance and inserting the following3 means-- 7,a7 any substance 2 and 7,b7 by striking the period at the end and inserting 2 and 7,b7 any substance not covered under subparagraph 7,a7 that was a substance under such section as of ,december #a1 #bjah1 and specified by the ,secretary of ,transportation4 4 7#e7 ,,fra provisions ,section #bjadj7;a7 of title #di1 ,united ,states ,code1 is amended-- 7,a7 by striking means any substance and inserting the following3 means-- 7,a7 any substance 2 and 7,b7 by striking the period at the end and inserting 2 and 7,b7 any substance not covered under subparagraph 7,a7 that was a substance under such section as of ,december #a1 #bjah1 and specified by the ,secretary of ,transportation4 4 7#f7 ,,fta provisions ,section #ecca7;a77#a7 of title #di1 ,united ,states ,code1 is amended-- 7,a7 by striking means any substance and inserting the following3 means-- 7,a7 any substance 2 and 7,b7 by striking the period at the end and inserting 2 and 7,b7 any substance not covered under subparagraph 7,a7 that was a substance under such section as of ,december #a1 #bjah1 and whose use the ,secretary of ,transportation decides has a risk to transportation safety4 4 7d7 ,retroactivity ,the amendments made by this section to the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hja et seq47 are retroactive and shall apply to any offense committed1 case pending1 conviction entered1 and1 in the case of a juvenile1 any offense committed1 case pending1 or adjudication of juvenile delinquency entered before1 on1 or after the date of enactment of this ,act4 7e7 ,effect on other law ,nothing in this subtitle shall affect or modify-- 7#a7 the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cja et seq472 7#b7 section #cea of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bfb72 or 7#c7 the authority of the ,commissioner of ,food and ,drugs and the ,secretary of ,health and ,human ,services-- 7,a7 under-- 7i7 the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4 #cja et seq472 or 7ii7 section #cea of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bfb72 or 7,b7 to promulgate ,federal regulations and guidelines that relate to products containing cannabis or cannabis-derived compounds under the ,act described in subparagraph 7,a77i7 or the section described in subparagraph 7,a77ii74 7f7 ,public meetings ,not later than one year after the date of enactment of this ,act1 the ,secretary of ,health and ,human ,services1 acting through the ,commissioner of ,food and ,drugs1 shall hold not less than one public meeting to address the regulation1 safety1 manufacturing1 product quality1 marketing1 labeling1 and sale of products containing cannabis or cannabis-derived compounds4 7g7 ,special rule for federal employee testing ,section #ejc of the ,supplemental ,appropriations ,act1 #aihg 7#e ,u4,s4,c4 #gcja note7 is amended by adding at the end the following3 7h7 ,marijuana 7#a7 ,continued testing ,notwithstanding the ,marijuana ,opportunity ,reinvestment and ,expungement ,act of #bjbj and the amendments made thereby1 the ,secretary of ,health and ,human ,services may continue to include marijuana for purposes of drug testing of ,federal employees subject to this section1 ,executive ,order #abefd1 or other applicable ,federal laws and orders4 7#b7 ,definition ,the term marijuana has the meaning given to the term marihuana in section #ajb of the ,controlled ,substances ,act 7#ba #f ,u4,s4,c4 #hjb7 on the day before the date of enactment of the ,marijuana ,opportunity ,reinvestment and ,expungement ,act of #bjbj4 4 7h7 ,special rule for certain regulations 7#a7 ,in general ,the amendments made by this section may not be construed to abridge the authority of the ,secretary of ,transportation1 or the ,secretary of the department in which the ,coast ,guard is operating1 to regulate and screen for the use of a controlled substance4 7#b7 ,controlled substance defined ,in this subsection1 the term controlled substance means-- 7,a7 any substance covered under section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb7 on the day before the date of enactment of this ,act2 and 7,b7 any substance not covered under subparagraph 7,a7 that was a substance covered under section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb7 on ,december #a1 #bjah1 and specified by the ,secretary of ,transportation4 #d4 ,demographic data of cannabis business owners and employees 7a7 ,in general ,the ,bureau of ,labor ,statistics shall regularly compile1 maintain1 and make public data on the demographics of-- 7#a7 individuals who are business owners in the cannabis industry2 and 7#b7 individuals who are employed in the cannabis industry4 7b7 ,demographic data ,the data collected under subsection 7a7 shall include data regarding-- 7#a7 age2 7#b7 certifications and licenses2 7#c7 disability status2 7#d7 educational attainment2 7#e7 family and marital status2 7#f7 nativity2 7#g7 race and ,hispanic ethnicity2 7#h7 school enrollment2 7#i7 veteran status2 and 7#aj7 sex4 7c7 ,confidentiality ,the name1 address1 and other identifying information of individuals employed in the cannabis industry shall be kept confidential by the ,bureau and not be made available to the public4 7d7 ,definitions ,in this section3 7#a7 ,cannabis ,the term cannabis means either marijuana or cannabis as defined under the ,state law authorizing the sale or use of cannabis in which the individual or entity is located4 7#b7 ,cannabis industry ,the term cannabis industry means an individual or entity that is licensed or permitted under a ,state or local law to engage in commercial cannabis-related activity4 7#c7 ,owner ,the term owner means an individual or entity that is defined as an owner under the ,state or local law where the individual or business is licensed or permitted4 #e4 ,creation of ,opportunity ,trust ,fund and imposition of taxes with respect to cannabis products 7a7 ,establishment of trust fund ,subchapter ,a of chapter #ih of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ieab4 ,opportunity ,trust ,fund 7a7 ,creation of ,trust ,fund ,there is established in the ,treasury of the ,united ,states a trust fund to be known as the ,opportunity ,trust ,fund 7referred to in this section as the ,trust ,fund71 consisting of such amounts as may be appropriated or credited to such fund as provided in this section or section #ifjb7;b74 7b7 ,transfers to ,trust ,fund ,there are hereby appropriated to the ,trust ,fund amounts equivalent to the net revenues received in the ,treasury from the taxes imposed under chapter #ef4 7c7 ,expenditures ,amounts in the ,trust ,fund shall be available1 without further appropriation1 only as follows3 7#a7 #ej percent to the ,attorney ,general to carry out section #cjeb7;a7 of part ,,oo of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh4 7#b7 #aj percent to the ,attorney ,general to carry out section #cjeb7;b7 of part ,,oo of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh4 7#c7 #bj percent to the ,administrator of the ,small ,business ,administration to carry out section #f7;b77#a7 of the ,marijuana ,opportunity ,reinvestment and ,expungement ,act of #bjbj4 7#d7 #bj percent to the ,administrator of the ,small ,business ,administration to carry out section #f7;b77#b7 of the ,marijuana ,opportunity ,reinvestment and ,expungement ,act of #bjbj4 4 7b7 ,cannabis ,revenue and ,regulation ,act ,subtitle ,e of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new chapter3 #ef ,cannabis ,products ,subchapter ,a4 ,tax on ,cannabis ,products ,subchapter ,b4 ,occupational ,tax ,subchapter ,c4 ,bond and ,permits ,subchapter ,d4 ,operations ,subchapter ,e4 ,penalties ,a ,tax on ,cannabis ,products ,sec4 #eija4 ,imposition of tax4 ,sec4 #eijb4 ,definitions4 ,sec4 #eijc4 ,liability and method of payment4 ,sec4 #eijd4 ,exemption from tax2 transfers in bond4 ,sec4 #eije4 ,credit1 refund1 or drawback of tax4 #eija4 ,imposition of tax 7a7 ,imposition of tax ,there is hereby imposed on any cannabis product produced in or imported into the ,united ,states a tax equal to-- 7#a7 for any such product removed during the first #e calendar years ending after the date on which this chapter becomes effective1 the applicable percentage of such product's removal price1 and 7#b7 for any product removed during any calendar year after the calendar years described in paragraph 7#a71 the applicable equivalent amount4 7b7 ,applicable percentage ,for purposes of subsection 7a77#a71 the applicable percentage shall be determined as follows3 7#a7 ,for any cannabis product removed during the first #b calendar years ending after the date on which this chapter becomes effective1 #e percent4 7#b7 ,for any cannabis product removed during the calendar year after the last calendar year to which paragraph 7#a7 applies1 #f percent4 7#c7 ,for any cannabis product removed during the calendar year after the calendar year to which paragraph 7#b7 applies1 #g percent4 7#d7 ,for any cannabis product removed during the calendar year after the calendar year to which paragraph 7#c7 applies1 #h percent4 7c7 ,applicable equivalent amount 7#a7 ,in general ,for purposes of subsection 7a77#b71 the term applicable equivalent amount means1 with respect to any cannabis product removed during any calendar year1 an amount equal to-- 7,a7 in the case of any cannabis product not described in subparagraph 7,b71 the product of the applicable rate per ounce multiplied by the number of ounces of such product 7and a proportionate tax at the like rate on all fractional parts of an ounce of such product71 and 7,b7 in the case of any ,,thc-measurable cannabis product1 the product of the applicable rate per gram multiplied by the number of grams of tetrahydrocannabinol in such product 7and a proportionate tax at the like rate on all fractional parts of a gram of tetrahydrocannabinol in such product74 7#b7 ,applicable rates 7,a7 ,in general ,for purposes of paragraph 7#a77;,a71 the term applicable rate per ounce means1 with respect to any cannabis product removed during any calendar year1 #h percent of the prevailing sales price of cannabis flowers sold in the ,united ,states during the #ab-month period ending one calendar quarter before such calendar year1 expressed on a per ounce basis1 as determined by the ,secretary4 7,b7 ,,thc-measurable cannabis products ,for purposes of paragraph 7#a77;,b71 the term applicable rate per gram means1 with respect to any cannabis product removed during any calendar year1 #h percent of the prevailing sales price of tetrahydrocannabinol sold in the ,united ,states during the #ab-month period ending one calendar quarter before such calendar year1 expressed on a per gram basis1 as determined by the ,secretary4 7d7 ,time of attachment on cannabis products ,the tax under this section shall attach to any cannabis product as soon as such product is in existence as such1 whether it be subsequently separated or transferred into any other substance1 either in the process of original production or by any subsequent process4 #eijb4 ,definitions 7a7 ,definitions related to cannabis products ,for purposes of this chapter-- 7#a7 ,cannabis product 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term cannabis product means any article which contains 7or consists of7 cannabis4 7,b7 ,exceptions ,the term cannabis product shall not include an ,,fda-approved article or industrial hemp4 7,c7 ,,fda-approved article ,the term ,,fda-approved article means any article if the producer or importer thereof demonstrates to the satisfaction of the ,secretary of ,health and ,human ,services that such article is-- 7i7 a drug-- 7,i7 that is approved under section #eje of the ,federal ,food1 ,drug1 and ,cosmetic ,act or licensed under section #cea of the ,public ,health ,service ,act1 or 7,,ii7 for which an investigational use exemption has been authorized under section #eje7;i7 of the ,federal ,food1 ,drug1 and ,cosmetic ,act or under section #cea7;a7 of the ,public ,health ,service ,act1 or 7ii7 a combination product 7as described in section #ejc7;g7 of the ,federal ,food1 ,drug1 and ,cosmetic ,act71 the constituent parts of which were approved or cleared under section #eje1 #eaj7k71 or #eae of such ,act4 7,d7 ,industrial hemp ,the term industrial hemp means the plant ,cannabis sativa ,l4 and any part of such plant1 whether growing or not1 with a delta-#i tetrahydrocannabinol concentration of not more than #j4c percent on a dry weight basis4 7#b7 ,,thc-measurable cannabis product ,the term ,,thc-measurable cannabis product means any cannabis product-- 7,a7 with respect to which the ,secretary has made a determination that the amount of tetrahydrocannabinol in such product can be measured with a high degree of accuracy1 or 7,b7 which is not cannabis flower and the concentration of tetrahydrocannabinol in which is significantly higher than the average such concentration in cannabis flower4 7#c7 ,cannabis ,the term cannabis has the meaning given such term under section #ajb7af7 of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb7af774 7b7 ,definitions related to cannabis enterprises ,for purposes of this chapter-- 7#a7 ,cannabis enterprise ,the term cannabis enterprise means a producer1 importer1 or export warehouse proprietor4 7#b7 ,producer 7,a7 ,in general ,the term producer means any person who plants1 cultivates1 harvests1 grows1 manufactures1 produces1 compounds1 converts1 processes1 prepares1 or packages any cannabis product4 7,b7 ,personal use exception ,subject to regulation prescribed by the ,secretary1 the term producer shall not include any individual otherwise described in subparagraph 7,a7 if the only cannabis product described in such subparagraph with respect to such individual is for personal or family use and not for sale4 7#c7 ,importer ,the term importer means any person who-- 7,a7 is in the ,united ,states and to whom non-tax-paid cannabis products1 produced in a foreign country or a possession of the ,united ,states1 are shipped or consigned1 7,b7 removes cannabis products for sale or consumption in the ,united ,states from a customs bonded warehouse1 or 7,c7 smuggles or otherwise unlawfully brings any cannabis product into the ,united ,states4 7#d7 ,export warehouse proprietor 7,a7 ,in general ,the term export warehouse proprietor means any person who operates an export warehouse4 7,b7 ,export warehouse ,the term export warehouse means a bonded internal revenue warehouse for the storage of cannabis products1 upon which the internal revenue tax has not been paid-- 7i7 for subsequent shipment to a foreign country or a possession of the ,united ,states1 or 7ii7 for consumption beyond the jurisdiction of the internal revenue laws of the ,united ,states4 7#e7 ,cannabis production facility ,the term cannabis production facility means an establishment which is qualified under subchapter ,c to perform any operation for which such qualification is required under such subchapter4 7c7 ,other definitions ,for purposes of this chapter-- 7#a7 ,produce ,the term produce includes any activity described in subsection 7b77#b77;,a74 7#b7 ,removal2 remove ,the terms removal or remove means-- 7,a7 the transfer of cannabis products from the premises of a producer 7or the transfer of such products from the bonded premises of a producer to a non-bonded premises of such producer71 7,b7 release of such products from customs custody1 or 7,c7 smuggling or other unlawful importation of such products into the ,united ,states4 7#c7 ,removal price ,the term removal price means-- 7,a7 except as otherwise provided in this paragraph1 the price for which the cannabis product is sold in the sale which occurs in connection with the removal of such product1 7,b7 in the case of any such sale which is described in section #eijc7;c71 the price determined under such section1 and 7,c7 if there is no sale which occurs in connection with such removal1 the price which would be determined under section #eijc7;c7 if such product were sold at a price which cannot be determined4 #eijc4 ,liability and method of payment 7a7 ,liability for tax 7#a7 ,original liability ,the producer or importer of any cannabis product shall be liable for the taxes imposed thereon by section #eija4 7#b7 ,transfer of liability 7,a7 ,in general ,when cannabis products are transferred1 without payment of tax1 pursuant to subsection 7b7 or 7c7 of section #eijd-- 7i7 except as provided in clause 7ii71 the transferee shall become liable for the tax upon receipt by the transferee of such articles1 and the transferor shall thereupon be relieved of their liability for such tax1 and 7ii7 in the case of cannabis products which are released in bond from customs custody for transfer to the bonded premises of a producer1 the transferee shall become liable for the tax on such articles upon release from customs custody1 and the importer shall thereupon be relieved of their liability for such tax4 7,b7 ,returned to bond ,all provisions of this chapter applicable to cannabis 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 purpose4 7b7 ,method of payment of tax 7#a7 ,in general 7,a7 ,taxes paid on basis of return ,the taxes imposed by section #eija shall be paid on the basis of return4 ,the ,secretary shall1 by regulations1 prescribe the period or the event to be covered by such return and the information to be furnished on such return4 7,b7 ,application to transferees ,in the case of any transfer to which subsection 7a77#b77;,a7 applies1 the tax under section #eija on the transferee shall 7if not otherwise relieved by reason of a subsequent transfer to which such subsection applies7 be imposed with respect to the removal of the cannabis product from the bonded premises of the transferee4 7,c7 ,postponement ,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 bonds1 and upon compliance with such requirements1 as the ,secretary may prescribe for the protection of the revenue4 ,the ,secretary may1 by regulations1 require payment of tax on the basis of a return prior to removal of the cannabis products where a person defaults in the postponed payment of tax on the basis of a return under this subsection or regulations prescribed thereunder4 7,d7 ,administration and penalties ,all administrative and penalty provisions of this title1 insofar as applicable1 shall apply to any tax imposed by section #eija4 7#b7 ,time for payment of taxes 7,a7 ,in general ,except as otherwise provided in this paragraph1 in the case of taxes on cannabis products removed during any semimonthly period under bond for deferred payment of tax1 the last day for payment of such taxes shall be the #adth day after the last day of such semimonthly period4 7,b7 ,imported articles ,in the case of cannabis products which are imported into the ,united ,states1 the following provisions shall apply3 7i7 ,in general ,the last day for payment of tax shall be the #adth day after the last day of the semimonthly period during which the article is entered into the customs territory of the ,united ,states4 7ii7 ,special rule for entry of warehousing ,except as provided in clause 7iv71 in the case of an entry for warehousing1 the last day for payment of tax shall not be later than the #adth day after the last day of the semimonthly period during which the article is removed from the first such warehouse4 7iii7 ,foreign trade zones ,except as provided in clause 7iv7 and in regulations prescribed by the ,secretary1 articles brought into a foreign trade zone shall1 notwithstanding any other provision of law1 be treated for purposes of this subsection as if such zone were a single customs warehouse4 7iv7 ,exception for articles destined for export ,clauses 7ii7 and 7iii7 shall not apply to any article which is shown to the satisfaction of the ,secretary to be destined for export4 7,c7 ,cannabis products brought into the ,united ,states from ,puerto ,rico ,in the case of cannabis products which are brought into the ,united ,states from ,puerto ,rico and subject to tax under section #gfeb1 the last day for payment of tax shall be the #adth day after the last day of the semimonthly period during which the article is brought into the ,united ,states4 7,d7 ,special rule where due date falls on ,saturday1 ,sunday1 or holiday ,notwithstanding section #gejc1 if1 but for this subparagraph1 the due date under this paragraph would fall on a ,saturday1 ,sunday1 or a legal holiday 7as defined in section #gejc71 such due date shall be the immediately preceding day which is not a ,saturday1 ,sunday1 or such a holiday4 7,e7 ,special rule for unlawfully produced cannabis products ,in the case of any cannabis products produced in the ,united ,states at any place other than the premises of a producer that has filed the bond and obtained the permit required under this chapter1 tax shall be due and payable immediately upon production4 7#c7 ,payment by electronic fund transfer ,any person who in any #ab-month period1 ending ,december #ca1 was liable for a gross amount equal to or exceeding #e1jjj1jjj in taxes imposed on cannabis products by section #eija 7or section #gfeb7 shall pay such taxes during the succeeding calendar year by electronic fund transfer 7as defined in section #ejfa7;e77#b77 to a ,federal ,reserve ,bank4 ,rules similar to the rules of section #ejfa7;e77#c7 shall apply to the #e1jjj1jjj amount specified in the preceding sentence4 7c7 ,determination of ,price 7#a7 ,constructive sale price 7,a7 ,in general ,if an article is sold directly to consumers1 sold on consignment1 or sold 7otherwise than through an arm's length transaction7 at less than the fair market price1 or if the price for which the article sold cannot be determined1 the tax under section #eija7;a7 shall be computed on the price for which such articles are sold1 in the ordinary course of trade1 by producers thereof1 as determined by the ,secretary4 7,b7 ,arm's length 7i7 ,in general ,for purposes of this section1 a sale is considered to be made under circumstances otherwise than at arm's length if-- 7,i7 the parties are members of the same controlled group1 whether or not such control is actually exercised to influence the sale price1 or 7,,ii7 the parties are members of a family1 as defined in section #bfg7;c77#d71 or 7,,iii7 the sale is made pursuant to special arrangements between a producer and a purchaser4 7ii7 ,controlled groups 7,i7 ,in general ,the term controlled group has the meaning given to such term by subsection 7a7 of section #aefc1 except that more than #ej percent shall be substituted for at least #hj percent each place it appears in such subsection4 7,,ii7 ,controlled groups which include nonincorporated persons ,under regulations prescribed by the ,secretary1 principles similar to the principles of subclause 7,i7 shall apply to a group of persons under common control where one or more of such persons is not a corporation4 7#b7 ,containers1 packing and transportation charges ,in determining1 for the purposes of this chapter1 the price for which an article is sold1 there shall be included any charge for coverings and containers of whatever nature1 and any charge incident to placing the article in condition packed ready for shipment1 but there shall be excluded the amount of tax imposed by this chapter1 whether or not stated as a separate charge4 ,a transportation1 delivery1 insurance1 installation1 or other charge 7not required by the preceding sentence to be included7 shall be excluded from the price only if the amount thereof is established to the satisfaction of the ,secretary in accordance with regulations4 7#c7 ,determination of applicable equivalent amounts ,paragraphs 7#a7 and 7#b7 shall apply for purposes of section #eija7;c7 only to the extent that the ,secretary determines appropriate4 7d7 ,partial payments and installment accounts 7#a7 ,partial payments ,in the case of-- 7,a7 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 installments1 7,b7 a conditional sale1 or 7,c7 a chattel mortgage arrangement wherein it is provided that the sales price shall be paid in installments1 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 due4 7#b7 ,sales of installment accounts ,if installment accounts1 with respect to payments on which tax is being computed as provided in paragraph 7#a71 are sold or otherwise disposed of1 then paragraph 7#a7 shall not apply with respect to any subsequent payments on such accounts 7other than subsequent payments on returned accounts with respect to which credit or refund is allowable by reason of section #fdaf7;b77#e771 but instead-- 7,a7 there shall be paid an amount equal to the difference between-- 7i7 the tax previously paid on the payments on such installment accounts1 and 7ii7 the total tax which would be payable if such installment accounts had not been sold or otherwise disposed of 7computed as provided in paragraph 7#a771 except that 7,b7 if any such sale is pursuant to the order of1 or subject to the approval of1 a court of competent jurisdiction in a bankruptcy or insolvency proceeding1 the amount computed under subparagraph 7,a7 shall not exceed the sum of the amounts computed by multiplying-- 7i7 the proportionate share of the amount for which such accounts are sold which is allocable to each unpaid installment payment1 by 7ii7 the rate of tax under this chapter in effect on the date such unpaid installment payment is or was due4 ,the sum of the amounts payable under this subsection in respect of the sale of any article shall not exceed the total tax4 #eijd4 ,exemption from tax2 transfers in bond 7a7 ,exemption from tax ,cannabis products on which the internal revenue tax has not been paid or determined may1 subject to such regulations as the ,secretary shall prescribe1 be withdrawn from the bonded premises of any producer in approved containers free of tax and not for resale for use-- 7#a7 exclusively in scientific research by a laboratory1 7#b7 by a proprietor of a cannabis production facility in research1 development1 or testing 7other than consumer testing or other market analysis7 of processes1 systems1 materials1 or equipment1 relating to cannabis or cannabis operations1 under such limitations and conditions as to quantities1 use1 and accountability as the ,secretary may by regulations require for the protection of the revenue1 or 7#c7 by the ,united ,states or any governmental agency thereof1 any ,state1 any political subdivision of a ,state1 or the ,district of ,columbia1 for nonconsumption purposes4 7b7 ,cannabis products transferred or removed in bond from domestic factories and export warehouses 7#a7 ,in general ,subject to such regulations and under such bonds as the ,secretary shall prescribe1 a producer or export warehouse proprietor may transfer cannabis products1 without payment of tax1 to the bonded premises of another producer or export warehouse proprietor1 or remove such articles1 without payment of tax1 for shipment to a foreign country or a possession of the ,united ,states1 or for consumption beyond the jurisdiction of the internal revenue laws of the ,united ,states4 7#b7 ,labeling ,cannabis products may not be transferred or removed under this subsection unless such products bear such marks1 labels1 or notices as the ,secretary shall by regulations prescribe4 7c7 ,cannabis products released in bond from customs custody ,cannabis products imported or brought into the ,united ,states may be released from customs custody1 without payment of tax1 for delivery to a producer or export warehouse proprietor if such articles are not put up in packages1 in accordance with such regulations and under such bond as the ,secretary shall prescribe4 7d7 ,cannabis products exported and returned ,cannabis products classifiable under item #ihja4jj4aj of the ,harmonized ,tariff ,schedule of the ,united ,states 7relating to duty on certain articles previously exported and returned71 as in effect on the date of the enactment of the ,marijuana ,opportunity ,reinvestment and ,expungement ,act of #bjbj1 may be released from customs custody1 without payment of that part of the duty attributable to the internal revenue tax for delivery to the original producer of such cannabis products or to the export warehouse proprietor authorized by such producer to receive such products1 in accordance with such regulations and under such bond as the ,secretary shall prescribe4 ,upon such release such products shall be subject to this chapter as if they had not been exported or otherwise removed from internal revenue bond4 #eije4 ,credit1 refund1 or drawback of tax 7a7 ,credit or refund 7#a7 ,in general ,credit or refund of any tax imposed by this chapter or section #gfeb shall be allowed or made 7without interest7 to the cannabis enterprise on proof satisfactory to the ,secretary that the claimant cannabis enterprise has paid the tax on-- 7,a7 cannabis products withdrawn from the market by the claimant1 or 7,b7 such products lost 7otherwise than by theft7 or destroyed1 by fire1 casualty1 or act of ,god1 while in the possession or ownership of the claimant4 7#b7 ,cannabis products lost or destroyed in bond 7,a7 ,extent of loss allowance ,no tax shall be collected in respect of cannabis products lost or destroyed while in bond1 except that such tax shall be collected-- 7i7 in the case of loss by theft1 unless the ,secretary finds that the theft occurred without connivance1 collusion1 fraud1 or negligence on the part of the proprietor of the cannabis production facility1 owner1 consignor1 consignee1 bailee1 or carrier1 or their employees or agents1 7ii7 in the case of voluntary destruction1 unless such destruction is carried out as provided in paragraph 7#c71 and 7iii7 in the case of an unexplained shortage of cannabis products4 7,b7 ,proof of loss ,in any case in which cannabis products are lost or destroyed1 whether by theft or otherwise1 the ,secretary may require the proprietor of a cannabis 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 loss4 ,in every case where it appears that the loss was by theft1 the burden shall be upon the proprietor of the cannabis production facility or other person responsible for the tax under section #eija to establish to the satisfaction of the ,secretary that such loss did not occur as the result of connivance1 collusion1 fraud1 or negligence on the part of the proprietor of the cannabis production facility1 owner1 consignor1 consignee1 bailee1 or carrier1 or their employees or agents4 7,c7 ,refund of tax ,in any case where the tax would not be collectible by virtue of subparagraph 7,a71 but such tax has been paid1 the ,secretary shall refund such tax4 7,d7 ,limitations ,except as provided in subparagraph 7,e71 no tax shall be abated1 remitted1 credited1 or refunded under this paragraph where the loss occurred after the tax was determined4 ,the abatement1 remission1 credit1 or refund of taxes provided for by subparagraphs 7,a7 and 7,c7 in the case of loss of cannabis 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 loss4 7,e7 ,applicability ,the provisions of this paragraph shall extend to and apply in respect of cannabis products lost after the tax was determined and before completion of the physical removal of the cannabis products from the bonded premises4 7#c7 ,voluntary destruction ,the proprietor of a cannabis production facility or other persons liable for the tax imposed by this chapter or by section #gfeb with respect to any cannabis product in bond may voluntarily destroy such products1 but only if such destruction is under such supervision and under such regulations as the ,secretary may prescribe4 7#d7 ,limitation ,any claim for credit or refund of tax under this subsection shall be filed within #f months after the date of the withdrawal from the market1 loss1 or destruction of the products to which the claim relates1 and shall be in such form and contain such information as the ,secretary shall by regulations prescribe4 7b7 ,drawback of tax ,there shall be an allowance of drawback of tax paid on cannabis products1 when shipped from the ,united ,states1 in accordance with such regulations and upon the filing of such bond as the ,secretary shall prescribe4 ,b ,occupational ,tax ,sec4 #eiaa4 ,imposition and rate of tax4 ,sec4 #eiab4 ,payment of tax4 ,sec4 #eiac4 ,provisions relating to liability for occupational taxes4 ,sec4 #eiad4 ,application to ,state laws4 #eiaa4 ,imposition and rate of tax 7a7 ,in general ,any person engaged in business as a producer or an export warehouse proprietor shall pay a tax of #a1jjj per year 7referred to in this subchapter as an occupational tax7 in respect of each premises at which such business is carried on4 7b7 ,penalty for failure ,to register ,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 #e1jjj1 or imprisoned not more than #b years1 or both1 for each such offense4 #eiab4 ,payment of tax 7a7 ,condition precedent to carrying on business ,no person shall be engaged in or carry on any trade or business subject to the occupational tax until such person has paid such tax4 7b7 ,computation 7#a7 ,in general ,the occupational tax shall be imposed-- 7,a7 as of on the first day of ,july in each year1 or 7,b7 on commencing any trade or business on which such tax is imposed4 7#b7 ,period ,in the case of a tax imposed under subparagraph 7,a7 of paragraph 7#a71 the occupational tax shall be reckoned for #a year1 and in the case of subparagraph 7,b7 of such paragraph1 it shall be reckoned proportionately1 from the first day of the month in which the liability to such tax commenced1 to and including the #cjth day of ,june following4 7c7 ,method of payment 7#a7 ,payment by return ,the occupational tax shall be paid on the basis of a return under such regulations as the ,secretary shall prescribe4 7#b7 ,stamp denoting payment of tax ,after receiving a properly executed return and remittance of any occupational tax1 the ,secretary shall issue to the taxpayer an appropriate stamp as a receipt denoting payment of the tax4 ,this paragraph shall not apply in the case of a return covering liability for a past period4 #eiac4 ,provisions relating to liability for occupational taxes 7a7 ,partners ,any number of persons doing business in partnership at any one place shall be required to pay a single occupational tax4 7b7 ,different businesses of same ownership and location ,whenever more than one of the pursuits or occupations described in this subchapter are carried on in the same place by the same person at the same time1 except as otherwise provided in this subchapter1 the occupational tax shall be paid for each according to the rates severally prescribed4 7c7 ,businesses in more than one location 7#a7 ,liability for tax ,the payment of the occupational tax shall not exempt from an additional occupational tax the person carrying on a trade or business in any other place than that stated in the records of the ,internal ,revenue ,service4 7#b7 ,storage ,nothing contained in paragraph 7#a7 shall require imposition of an occupational tax for the storage of cannabis products at a location other than the place where such products are sold or offered for sale4 7#c7 ,place 7,a7 ,in general ,for purposes of this section1 the term place means the entire office1 plant or area of the business in any one location under the same proprietorship4 7,b7 ,divisions ,for purposes of this paragraph1 any passageways1 streets1 highways1 rail crossings1 waterways1 or partitions dividing the premises shall not be deemed sufficient separation to require an additional occupational tax1 if the various divisions are otherwise contiguous4 7d7 ,death or change of location 7#a7 ,in general ,in addition to the person who has paid the occupational tax for the carrying on of any business at any place1 any person described in paragraph 7#b7 may secure the right to carry on1 without incurring any additional occupational tax1 the same business at the same place for the remainder of the taxable period for which the occupational tax was paid4 7#b7 ,eligible persons ,the persons described in this paragraph are the following3 7,a7 ,the surviving spouse or child1 or executor or administrator or other legal representative1 of a deceased taxpayer4 7,b7 ,a husband or wife succeeding to the business of his or her living spouse4 7,c7 ,a receiver or trustee in bankruptcy1 or an assignee for benefit of creditors4 7,d7 ,the partner or partners remaining after death or withdrawal of a member of a partnership4 7#c7 ,change of location ,when any person moves to any place other than the place for which occupational tax was paid for the carrying on of any business1 such person may secure the right to carry on1 without incurring additional occupational tax1 the same business at the new location for the remainder of the taxable period for which the occupational tax was paid4 ,to secure the right to carry on the business without incurring additional occupational tax1 the successor1 or the person relocating their business1 must register the succession or relocation with the ,secretary in accordance with regulations prescribed by the ,secretary4 7e7 ,federal agencies or instrumentalities ,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 tax4 #eiad4 ,application to ,state laws ,the payment of any tax imposed by this subchapter for carrying on any trade or business shall not be held to-- 7#a7 exempt any person from any penalty or punishment provided by the laws of any ,state for carrying on such trade or business within such ,state1 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 law1 or 7#b7 prohibit any ,state from placing a duty or tax on the same trade or business1 for ,state or other purposes4 ,c ,bond and ,permits ,sec4 #eiba4 ,establishment and bond4 ,sec4 #eibb4 ,application for permit4 ,sec4 #eibc4 ,permit4 #eiba4 ,establishment and bond 7a7 ,prohibition on production outside of bonded cannabis production facility 7#a7 ,in general ,except as authorized by the ,secretary or on the bonded premises of a cannabis production facility duly authorized to produce cannabis products according to law1 no cannabis product may planted1 cultivated1 harvested1 grown1 manufactured1 produced1 compounded1 converted1 processed1 prepared1 or packaged in any building or on any premises4 7#b7 ,authorized producers only ,no person other than a producer which has filed the bond required under subsection 7b7 and received a permit described in section #eibc may produce any cannabis product4 7#c7 ,personal use exception ,this subsection shall not apply with respect the activities of an individual who is not treated as a producer by reason of section #eijb7;b77#b77;,b74 7b7 ,bond 7#a7 ,when required ,every person1 before commencing business as a producer or an export warehouse proprietor1 shall file such bond1 conditioned upon compliance with this chapter and regulations issued thereunder1 in such form1 amount1 and manner as the ,secretary shall by regulation prescribe4 ,a new or additional bond may be required whenever the ,secretary considers such action necessary for the protection of the revenue4 7#b7 ,approval or disapproval ,no person shall engage in such business until he receives notice of approval of such bond4 ,a bond may be disapproved1 upon notice to the principal on the bond1 if the ,secretary determines that the bond is not adequate to protect the revenue4 7#c7 ,cancellation ,any bond filed hereunder may be canceled1 upon notice to the principal on the bond1 whenever the ,secretary determines that the bond no longer adequately protects the revenue4 #eibb4 ,application for permit 7a7 ,in general ,every person1 before commencing business as a cannabis enterprise1 and at such other time as the ,secretary shall by regulation prescribe1 shall make application for the permit provided for in section #eibc4 ,the application shall be in such form as the ,secretary shall prescribe and shall set forth1 truthfully and accurately1 the information called for on the form4 ,such application may be rejected and the permit denied if the ,secretary1 after notice and opportunity for hearing1 finds that-- 7#a7 the premises on which it is proposed to conduct the cannabis enterprise are not adequate to protect the revenue1 or 7#b7 such person 7including1 in the case of a corporation1 any officer1 director1 or principal stockholder and1 in the case of a partnership1 a partner7-- 7,a7 is1 by reason of their business experience1 financial standing1 or trade connections or by reason of previous or current legal proceedings involving a felony violation of any other provision of ,federal or ,state criminal law relating to cannabis or cannabis products1 not likely to maintain operations in compliance with this chapter1 or 7,b7 has failed to disclose any material information required or made any material false statement in the application therefor4 #eibc4 ,permit 7a7 ,issuance ,a person shall not engage in business as a cannabis enterprise without a permit to engage in such business4 ,such permit1 conditioned upon compliance with this chapter and regulations issued thereunder1 shall be issued in such form and in such manner as the ,secretary shall by regulation prescribe4 ,a new permit may be required at such other time as the ,secretary shall by regulation prescribe4 7b7 ,suspension or ,revocation 7#a7 ,show cause hearing ,if the ,secretary has reason to believe that any person holding a permit-- 7,a7 has not in good faith complied with this chapter1 or with any other provision of this title involving intent to defraud1 7,b7 has violated the conditions of such permit1 7,c7 has failed to disclose any material information required or made any material false statement in the application for such permit1 7,d7 has failed to maintain their premises in such manner as to protect the revenue1 or 7,e7 is1 by reason of previous or current legal proceedings involving a felony violation of any other provision of ,federal or ,state criminal law relating to cannabis1 not likely to maintain operations in compliance with this chapter1 the ,secretary shall issue an order1 stating the facts charged1 citing such person to show cause why their permit should not be suspended or revoked4 7#b7 ,action following hearing ,if1 after hearing1 the ,secretary finds that such person has not shown cause why their permit should not be suspended or revoked1 such permit shall be suspended for such period as the ,secretary deems proper or shall be revoked4 7c7 ,information reporting ,the ,secretary may require-- 7#a7 information reporting by any person issued a permit under this section1 and 7#b7 information reporting by such other persons as the ,secretary deems necessary to carry out this chapter4 7d7 ,inspection or disclosure of information ,for rules relating to inspection and disclosure of returns and return information1 see section #fajc7o74 ,d ,operations ,sec4 #eica4 ,inventories1 reports1 and records4 ,sec4 #eicb4 ,packaging and labeling4 ,sec4 #eicc4 ,purchase1 receipt1 possession1 or sale of cannabis products after removal4 ,sec4 #eicd4 ,restrictions relating to marks1 labels1 notices1 and packages4 ,sec4 #eice4 ,restriction on importation of previously exported cannabis products4 #eica4 ,inventories1 reports1 and records ,every cannabis enterprise shall-- 7#a7 make a true and accurate inventory at the time of commencing business1 at the time of concluding business1 and at such other times1 in such manner and form1 and to include such items1 as the ,secretary shall by regulation prescribe1 with such inventories to be subject to verification by any internal revenue officer1 7#b7 make reports containing such information1 in such form1 at such times1 and for such periods as the ,secretary shall by regulation prescribe1 and 7#c7 keep such records in such manner as the ,secretary shall by regulation prescribe1 with such records to be available for inspection by any internal revenue officer during business hours4 #eicb4 ,packaging and labeling 7a7 ,packages ,all cannabis products shall1 before removal1 be put up in such packages as the ,secretary shall by regulation prescribe4 7b7 ,marks1 labels1 and notices ,every package of cannabis products shall1 before removal1 bear the marks1 labels1 and notices if any1 that the ,secretary by regulation prescribes4 7c7 ,lottery features ,no certificate1 coupon1 or other device purporting to be or to represent a ticket1 chance1 share1 or an interest in1 or dependent on1 the event of a lottery shall be contained in1 attached to1 or stamped1 marked1 written1 or printed on any package of cannabis products4 7d7 ,indecent or immoral material prohibited ,no indecent or immoral picture1 print1 or representation shall be contained in1 attached to1 or stamped1 marked1 written1 or printed on any package of cannabis products4 7e7 ,exceptions ,subject to regulations prescribed by the ,secretary1 cannabis products may be exempted from subsections 7a7 and 7b7 if such products are-- 7#a7 for experimental purposes1 or 7#b7 transferred to the bonded premises of another producer or export warehouse proprietor or released in bond from customs custody for delivery to a producer4 #eicc4 ,purchase1 receipt1 possession1 or sale of cannabis products after removal 7a7 ,restriction ,no person shall-- 7#a7 with intent to defraud the ,united ,states1 purchase1 receive1 possess1 offer for sale1 or sell or otherwise dispose of1 after removal1 any cannabis products-- 7,a7 upon which the tax has not been paid or determined in the manner and at the time prescribed by this chapter or regulations thereunder1 or 7,b7 which1 after removal without payment of tax pursuant to section #eijd7;a71 have been diverted from the applicable purpose or use specified in that section1 7#b7 with intent to defraud the ,united ,states1 purchase1 receive1 possess1 offer for sale1 or sell or otherwise dispose of1 after removal1 any cannabis products which are not put up in packages as required under section #eicb or which are put up in packages not bearing the marks1 labels1 and notices1 as required under such section1 or 7#c7 otherwise than with intent to defraud the ,united ,states1 purchase1 receive1 possess1 offer for sale1 or sell or otherwise dispose of1 after removal1 any cannabis products which are not put up in packages as required under section #eicb or which are put up in packages not bearing the marks1 labels1 and notices1 as required under such section4 7b7 ,exception ,paragraph 7#c7 of subsection 7a7 shall not prevent the sale or delivery of cannabis products directly to consumers from proper packages1 nor apply to such articles when so sold or delivered4 7c7 ,liability to tax ,any person who possesses cannabis products in violation of paragraph 7#a7 or 7#b7 of subsection 7a7 shall be liable for a tax equal to the tax on such articles4 #eicd4 ,restrictions relating to marks1 labels1 notices1 and packages ,no person shall1 with intent to defraud the ,united ,states1 destroy1 obliterate1 or detach any mark1 label1 or notice prescribed or authorized1 by this chapter or regulations thereunder1 to appear on1 or be affixed to1 any package of cannabis products before such package is emptied4 #eice4 ,restriction on importation of previously exported cannabis products 7a7 ,export labeled cannabis products 7#a7 ,in general ,cannabis products produced in the ,united ,states and labeled for exportation under this chapter-- 7,a7 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 #eijd1 7,b7 may be imported or brought into the ,united ,states1 after their exportation1 only if such articles either are eligible to be released from customs custody with the partial duty exemption provided in section #eijd7;d7 or are returned to the original producer of such article as provided in section #eijd7;c71 and 7,c7 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 label4 7#b7 ,alterations by persons other than original producer ,this section shall apply to articles labeled for export even if the packaging or the appearance of such packaging to the consumer of such articles has been modified or altered by a person other than the original producer so as to remove or conceal or attempt to remove or conceal 7including by the placement of a sticker over7 any export label4 7#c7 ,exports include shipments to ,puerto ,rico ,for purposes of this section1 section #eijd7;d71 section #eida1 and such other provisions as the ,secretary may specify by regulations1 references to exportation shall be treated as including a reference to shipment to the ,commonwealth of ,puerto ,rico4 7b7 ,export label ,for purposes of this section1 an article is labeled for export or contains an export label if it bears the mark1 label1 or notice required under section #eijd7;b74 ,e ,penalties ,sec4 #eida4 ,civil penalties4 ,sec4 #eidb4 ,criminal penalties4 #eida4 ,civil penalties 7a7 ,omitting ,things ,required or ,doing ,things ,forbidden ,whoever willfully omits1 neglects1 or refuses to comply with any duty imposed upon them by this chapter1 or to do1 or cause to be done1 any of the things required by this chapter1 or does anything prohibited by this chapter1 shall in addition to any other penalty provided in this title1 be liable to a penalty of #aj1jjj1 to be recovered1 with costs of suit1 in a civil action1 except where a penalty under subsection 7b7 or 7c7 or under section #ffea or #ffec or part ,,ii of subchapter ,a of chapter #fh may be collected from such person by assessment4 7b7 ,failure ,to ,pay ,tax ,whoever fails to pay any tax imposed by this chapter at the time prescribed by law or regulations1 shall1 in addition to any other penalty provided in this title1 be liable to a penalty of #aj percent of the tax due but unpaid4 7c7 ,sale of cannabis or cannabis ,products for ,export 7#a7 ,every person who sells1 relands1 or receives within the jurisdiction of the ,united ,states any cannabis products which have been labeled or shipped for exportation under this chapter1 7#b7 every person who sells or receives such relanded cannabis products1 and 7#c7 every person who aids or abets in such selling1 relanding1 or receiving1 shall1 in addition to the tax and any other penalty provided in this title1 be liable for a penalty equal to the greater of #aj1jjj or #aj times the amount of the tax imposed by this chapter4 ,all cannabis products relanded within the jurisdiction of the ,united ,states shall be forfeited to the ,united ,states and destroyed4 ,all vessels1 vehicles1 and aircraft used in such relanding or in removing such cannabis products from the place where relanded1 shall be forfeited to the ,united ,states4 7d7 ,applicability of ,section #fffe ,the penalties imposed by subsections 7b7 and 7c7 shall be assessed1 collected1 and paid in the same manner as taxes1 as provided in section #fffe7;a74 7e7 ,cross ,references ,for penalty for failure to make deposits or for overstatement of deposits1 see section #ffef4 #eidb4 ,criminal penalties 7a7 ,fraudulent ,offenses ,whoever1 with intent to defraud the ,united ,states-- 7#a7 engages in business as a cannabis enterprise without filing the application and obtaining the permit where required by this chapter or regulations thereunder1 7#b7 fails to keep or make any record1 return1 report1 or inventory1 or keeps or makes any false or fraudulent record1 return1 report1 or inventory1 required by this chapter or regulations thereunder1 7#c7 refuses to pay any tax imposed by this chapter1 or attempts in any manner to evade or defeat the tax or the payment thereof1 7#d7 sells or otherwise transfers1 contrary to this chapter or regulations thereunder1 any cannabis products subject to tax under this chapter1 or 7#e7 purchases1 receives1 or possesses1 with intent to redistribute or resell1 any cannabis product-- 7,a7 upon which the tax has not been paid or determined in the manner and at the time prescribed by this chapter or regulations thereunder1 or 7,b7 which1 without payment of tax pursuant to section #eijd1 have been diverted from the applicable purpose or use specified in that section1 shall1 for each such offense1 be fined not more than #aj1jjj1 or imprisoned not more than #e years1 or both4 7b7 ,liability to tax ,any person who possesses cannabis products in violation of subsection 7a7 shall be liable for a tax equal to the tax on such articles4 4 7c7 ,study ,not later than #b years after the date of the enactment of this ,act1 and every #e years thereafter1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall-- 7#a7 conduct a study concerning the characteristics of the cannabis industry1 including the number of persons operating cannabis enterprises at each level of such industry1 the volume of sales1 the amount of tax collected each year1 and the areas of evasion1 and 7#b7 submit to ,congress recommendations to improve the regulation of the industry and the administration of the related tax4 7d7 ,annual reports regarding determination of applicable rates ,not later than #f months before the beginning of each calendar year to which section #eija7;a77#b7 of the ,internal ,revenue ,code of #aihf 7as added by this section7 applies1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall make publicly available a detailed description of the methodology which the ,secretary anticipates using to determine the applicable rate per ounce and the applicable rate per gram which will apply for such calendar year under section #eija7;c77#b7 of such ,code4 7e7 ,conforming amendments 7#a7 ,section #fajc7o77#a77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking and firearms and inserting firearms1 and cannabis products4 7#b7 ,the table of chapters for subtitle ,e of such ,code is amended by adding at the end the following new item3 ,chapter #ef4 ,cannabis ,products 4 7#c7 ,the table of sections for subchapter ,a of chapter #ih of such ,code is amended by adding at the end the following new item3 ,sec4 #ieab4 ,opportunity ,trust ,tund4 4 7f7 ,effective date 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to removals1 and applications for permits under section #eibb of the ,internal ,revenue ,code of #aihf 7as added by subsection 7b771 after #ahj days after the date of the enactment of this ,act4 7#b7 ,establishment of trust fund ,the amendment made by subsection 7a7 shall take effect on the date of the enactment of this ,act4 #f4 ,opportunity trust fund programs 7a7 ,cannabis justice office2 community reinvestment grant program 7#a7 ,cannabis justice office ,part ,a of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh 7#cd ,u4,s4,c4 #ajaja et seq47 is amended by inserting after section #aji the following3 #aaj4 ,cannabis justice office 7a7 ,establishment ,there is established within the ,office of ,justice ,programs a ,cannabis ,justice ,office4 7b7 ,director ,the ,cannabis ,justice ,office shall be headed by a ,director who shall be appointed by the ,assistant ,attorney ,general for the ,office of ,justice ,programs4 ,the ,director shall report to the ,assistant ,attorney ,general for the ,office of ,justice ,programs4 ,the ,director shall award grants and may enter into compacts1 cooperative agreements1 and contracts on behalf of the ,cannabis ,justice ,office4 ,the ,director may not engage in any employment other than that of serving as the ,director1 nor may the ,director hold any office in1 or act in any capacity for1 any organization1 agency1 or institution with which the ,office makes any contract or other arrangement4 7c7 ,employees 7#a7 ,in general ,the ,director shall employ as many full-time employees as are needed to carry out the duties and functions of the ,cannabis ,justice ,office under subsection 7d74 ,such employees shall be exclusively assigned to the ,cannabis ,justice ,office4 7#b7 ,initial hires ,not later than #f months after the date of enactment of this section1 the ,director shall-- 7,a7 hire no less than one-third of the total number of employees of the ,cannabis ,justice ,office2 and 7,b7 no more than one-half of the employees assigned to the ,cannabis ,justice ,office by term appointment that may after #b years be converted to career appointment4 7#c7 ,legal counsel ,at least one employee hired for the ,cannabis ,justice ,office shall serve as legal counsel to the ,director and shall provide counsel to the ,cannabis ,justice ,office4 7d7 ,duties and functions ,the ,cannabis ,justice ,office is authorized to-- 7#a7 administer the ,community ,reinvestment ,grant ,program2 and 7#b7 perform such other functions as the ,assistant ,attorney ,general for the ,office of ,justice ,programs may delegate1 that are consistent with the statutory obligations of this section4 4 7#b7 ,community reinvestment grant program ,title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh 7#cd ,u4,s4,c4 et seq47 is amended by adding at the end the following3 ,,oo ,,community ,,reinvestment ,,grant ,,program #cjeb4 ,authorization 7a7 ,in general ,the ,director of the ,cannabis ,justice ,office shall establish and carry out a grant program1 known as the ,community ,reinvestment ,grant ,program1 to provide eligible entities with funds to administer services for individuals adversely impacted by the ,war on ,drugs1 including-- 7#a7 job training2 7#b7 reentry services2 7#c7 legal aid for civil and criminal cases1 including expungement of cannabis convictions2 7#d7 literacy programs2 7#e7 youth recreation or mentoring programs2 and 7#f7 health education programs4 7b7 ,substance use disorder services ,the ,director1 in consultation with the ,secretary of ,health and ,human ,services1 shall provide eligible entities with funds to administer substance use disorder services for individuals adversely impacted by the ,war on ,drugs or connect patients with substance use disorder services4 ,also eligible for such services are individuals who have been arrested for or convicted of the sale1 possession1 use1 manufacture1 or cultivation of a controlled substance other than cannabis 7except for a conviction involving distribution to a minor74 #cjec4 ,funding from opportunity trust fund ,the ,director shall carry out the program under this part using funds made available under section #ieab7;c77#a7 and 7#b7 of the ,internal ,revenue ,code4 #cjed4 ,definitions ,in this part3 7#a7 ,the term cannabis conviction means a conviction1 or adjudication of juvenile delinquency1 for a cannabis offense 7as such term is defined in section #ac of the ,marijuana ,opportunity ,reinvestment and ,expungement ,act of #bjbj74 7#b7 ,the term eligible entity means a nonprofit organization1 as defined in section #eja7;c77#c7 of the ,internal ,revenue ,code1 that is representative of a community or a significant segment of a community with experience in providing relevant services to individuals adversely impacted by the ,war on ,drugs in that community4 7#c7 ,the term individuals adversely impacted by the ,war on ,drugs has the meaning given that term in section #f of the ,marijuana ,opportunity ,reinvestment and ,expungement ,act of #bjbj 404 7b7 ,cannabis opportunity program2 equitable licensing grant program 7#a7 ,cannabis opportunity program ,the ,administrator of the ,small ,business ,administration shall establish and carry out a program1 to be known as the ,cannabis ,opportunity ,program to provide any eligible ,state or locality funds to make loans under section #g7m7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #cfc7m77 to assist small business concerns owned and controlled by socially and economically disadvantaged individuals1 as defined in section #h7;d77#c77;,c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;d77#c77;,c77 that operate in the cannabis industry4 7#b7 ,equitable licensing grant program ,the ,administrator of the ,small ,business ,administration shall establish and carry out a grant program1 to be known as the ,equitable ,licensing ,grant ,program1 to provide any eligible ,state or locality funds to develop and implement equitable cannabis licensing programs that minimize barriers to cannabis licensing and employment for individuals adversely impacted by the ,war on ,drugs1 provided that each grantee includes in its cannabis licensing program at least four of the following3 7,a7 ,a waiver of cannabis license application fees for individuals who have had an income below #bej percent of the ,federal ,poverty ,level for at least #e of the past #aj years who are first-time applicants4 7,b7 ,a prohibition on the denial of a cannabis license based on a conviction for a cannabis offense that took place prior to ,state legalization of cannabis or the date of enactment of this ,act1 as appropriate4 7,c7 ,a prohibition on criminal conviction restrictions for licensing except with respect to a conviction related to owning and operating a business4 7,d7 ,a prohibition on cannabis license holders engaging in suspicionless cannabis drug testing of their prospective or current employees1 except with respect to drug testing for safety-sensitive positions under part #dj of title #di1 ,code of ,federal ,regulations4 7,e7 ,the establishment of a cannabis licensing board that is reflective of the racial1 ethnic1 economic1 and gender composition of the ,state or locality1 to serve as an oversight body of the equitable licensing program4 7#c7 ,definitions ,in this subsection3 7,a7 ,the term individual adversely impacted by the ,war on ,drugs means an individual-- 7i7 who has had an income below #bej percent of the ,federal ,poverty ,level for at least #e of the past #aj years2 and 7ii7 has been arrested for or convicted of the sale1 possession1 use1 manufacture1 or cultivation of cannabis 7except for a conviction involving distribution to a minor71 or whose parent1 sibling1 spouse1 or child has been arrested for or convicted of such an offense4 7,b7 ,the term eligible ,state or locality means a ,state or locality that has taken steps to-- 7i7 create an automatic process1 at no cost to the individual1 for the expungement1 destruction1 or sealing of criminal records for cannabis offenses2 and 7ii7 eliminate violations or other penalties for persons under parole1 probation1 pre-trial1 or other ,state or local criminal supervision for a cannabis offense4 7,c7 ,the term ,state means each of the several ,states1 the ,district of ,columbia1 ,puerto ,rico1 any territory or possession of the ,united ,states1 and any ,indian ,tribe 7as defined in section #bja of ,public ,law #ij-bid 7#be ,u4,s4,c4 #acja7 7commonly known as the ,indian ,civil ,rights ,act of #aifh774 #g4 ,availability of small business administration programs and services to cannabis-related legitimate businesses and service providers 7a7 ,definitions relating to cannabis-related legitimate businesses and service providers ,section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7 is amended by adding at the end the following new subsection3 7ff7 ,cannabis-related legitimate businesses and service providers ,in this ,act3 7#a7 ,cannabis ,the term cannabis-- 7,a7 means all parts of the plant ,cannabis sativa ,l41 whether growing or not2 the seeds thereof2 the resin extracted from any part of such plant2 and every compound1 manufacture1 salt1 derivative1 mixture1 or preparation of such plant1 its seeds or resin2 and 7,b7 does not include-- 7i7 hemp1 as defined in section #big;,a of the ,agricultural ,marketing ,act of #aidf2 7ii7 the mature stalks of such plant1 fiber produced from such stalks1 oil or cake made from the seeds of such plant1 any other compound1 manufacture1 salt1 derivative1 mixture1 or preparation of such mature stalks 7except the resin extracted therefrom71 fiber1 oil1 or cake1 or the sterilized seed of such plant which is incapable of germination2 or 7iii7 any drug product approved under section #eje of the ,federal ,food1 ,drug1 and ,cosmetic ,act1 or biological product licensed under section #cea of the ,public ,health ,service ,act4 7#b7 ,cannabis-related legitimate business ,the term cannabis-related legitimate business means a manufacturer1 producer1 or any person or company that is a small business concern and that-- 7,a7 engages in any activity described in subparagraph 7,b7 pursuant to a law established by a ,state or a political subdivision of a ,state1 as determined by such ,state or political sub-division2 and 7,b7 participates in any business or organized activity that involves handling cannabis or cannabis products1 including cultivating1 producing1 manufacturing1 selling1 transporting1 displaying1 dispensing1 distributing1 or purchasing cannabis or cannabis products4 7#c7 ,service provider ,the term service provider-- 7,a7 means a business1 organization1 or other person that-- 7i7 sells goods or services to a cannabis-related legitimate business2 or 7ii7 provides any business services1 including the sale or lease of real or any other property1 legal or other licensed services1 or any other ancillary service1 relating to cannabis2 and 7,b7 does not include a business1 organization1 or other person that participates in any business or organized activity that involves handling cannabis or cannabis products1 including cultivating1 producing1 manufacturing1 selling1 transporting1 displaying1 dispensing1 distributing1 or purchasing cannabis or cannabis products4 4 7b7 ,small business development centers ,section #ba7;c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdh7;c77 is amended by adding at the end the following new paragraph3 7#i7 ,services for cannabis-related legitimate businesses and service providers ,a small business development center may not decline to provide services to an otherwise eligible small business concern under this section solely because such concern is a cannabis-related legitimate business or service provider4 4 7c7 ,women's business centers ,section #bi of the ,small ,business ,act 7#ae ,u4,s4,c4 #fef7 is amended by adding at the end the following new subsection3 7p7 ,services for cannabis-related legitimate businesses and service providers ,a women's business center may not decline to provide services to an otherwise eligible small business concern under this section solely because such concern is a cannabis-related legitimate business or service provider4 4 7d7 ,score ,section #h7;b77#a77;,b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;b77#a77;,b77 is amended by adding at the end the following new sentence3 ,the head of the ,,score program established under this subparagraph may not decline to provide services to an otherwise eligible small business concern solely because such concern is a cannabis-related legitimate business or service provider44 7e7 ,veteran business outreach centers ,section #cb of the ,small ,business ,act 7#ae ,u4,s4,c4 #feg;b7 is amended by adding at the end the following new subsection3 7h7 ,services for cannabis-related legitimate businesses and service providers ,a ,veteran ,business ,outreach ,center may not decline to provide services to an otherwise eligible small business concern under this section solely because such concern is a cannabis-related legitimate business or service provider4 4 7f7 #g7;a7 loans ,section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 is amended by adding at the end the following new paragraph3 7#cg7 ,loans to cannabis-related legitimate businesses and service providers ,the ,administrator may not decline to provide a guarantee for a loan under this subsection to an otherwise eligible small business concern solely because such concern is a cannabis-related legitimate business or service provider4 4 7g7 ,disaster loans ,section #g7;b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;b77 is amended by inserting after paragraph 7#ae7 the following new paragraph3 7#af7 ,assistance to cannabis-related legitimate businesses and service providers ,the ,administrator may not decline to provide assistance under this subsection to an otherwise eligible borrower solely because such borrower is a cannabis-related legitimate business or service provider4 4 7h7 ,microloans ,section #g7m7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m77 is amended by adding at the end the following new paragraph3 7#ad7 ,assistance to cannabis-related legitimate businesses and service providers ,an eligible intermediary may not decline to provide assistance under this subsection to an otherwise eligible borrower solely because such borrower is a cannabis-related legitimate business or service provider4 4 7i7 ,state or local development company loans ,title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq47 is amended by adding at the end the following new section3 #eaa4 ,loans to cannabis-related legitimate businesses and service providers ,the ,administrator may not decline to provide a guarantee for a loan under this title to an otherwise eligible ,state or local development company solely because such ,state or local development company provides financing to an entity that is a cannabis-related legitimate business or service provider 7as defined in section #c7;ff7 of the ,small ,business ,act74 4 #h4 ,no discrimination in the provision of a federal public benefit on the basis of cannabis 7a7 ,in general ,no person may be denied any ,federal public benefit 7as such term is defined in section #dja7;c7 of the ,personal ,responsibility and ,work ,opportunity ,reconciliation ,act of #aiif 7#h ,u4,s4,c4 #afaa7;c777 on the basis of any use or possession of cannabis1 or on the basis of a conviction or adjudication of juvenile delinquency for a cannabis offense1 by that person4 7b7 ,security clearances ,federal agencies may not use past or present cannabis or marijuana use as criteria for granting1 denying1 or rescinding a security clearance4 #i4 ,no adverse effect for purposes of the immigration laws 7a7 ,in general ,for purposes of the immigration laws 7as such term is defined in section #aja of the ,immigration and ,nationality ,act71 cannabis may not be considered a controlled substance1 and an alien may not be denied any benefit or protection under the immigration laws based on any event1 including conduct1 a finding1 an admission1 addiction or abuse1 an arrest1 a juvenile adjudication1 or a conviction1 relating to cannabis1 regardless of whether the event occurred before1 on1 or after the effective date of this ,act4 7b7 ,cannabis defined ,the term cannabis-- 7#a7 means all parts of the plant ,cannabis sativa ,l41 whether growing or not2 the seeds thereof2 the resin extracted from any part of such plant2 and every compound1 manufacture1 salt1 derivative1 mixture1 or preparation of such plant1 its seeds or resin2 and 7#b7 does not include-- 7,a7 hemp1 as defined in section #big;,a of the ,agricultural ,marketing ,act of #aidf2 7,b7 the mature stalks of such plant1 fiber produced from such stalks1 oil or cake made from the seeds of such plant1 any other compound1 manufacture1 salt1 derivative1 mixture1 or preparation of such mature stalks 7except the resin extracted therefrom71 fiber1 oil1 or cake1 or the sterilized seed of such plant which is incapable of germination2 or 7,c7 any drug product approved under section #eje of the ,federal ,food1 ,drug1 and ,cosmetic ,act1 or biological product licensed under section #cea of the ,public ,health ,service ,act4 7c7 ,conforming amendments to immigration and nationality act ,the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja et seq47 is amended-- 7#a7 in section #bab7;h71 by striking and subparagraph 7,a77i77,,ii7 of such subsection insofar as it relates to a single offense of simple possession of #cj grams or less of marijuana2 7#b7 in section #bcg7;a77#b77;,b77i71 by striking other than a single offense involving possession for one's own use of #cj grams or less of marijuana2 7#c7 in section #aja7;f77#c71 by striking 7except as such paragraph relates to a single offense of simple possession of #cj grams or less of marihuana72 7#d7 in section #bdd7;c77#b77;,a77iii77,,ii7 by striking except for so much of such paragraph as relates to a single offense of simple possession of #cj grams or less of marijuana2 7#e7 in section #bde7;h77#b77;,b7 by striking 7except for so much of such paragraph as related to a single offense of simple possession of #cj grams or less of marijuana72 7#f7 in section #baj7;c77#b77;,b77ii77,,iii7 by striking 1 except for so much of such paragraph as relates to a single offense of simple possession of #cj grams or less of marihuana2 and 7#g7 in section #bde;,a7d77#b77;,b77ii77,,ii7 by striking 1 except for so much of such paragraph as relates to a single offense of simple possession of #cj grams or less of marihuana4 #aj4 ,resentencing and expungement 7a7 ,expungement of ,non-,violent federal cannabis offense convictions for individuals not under a criminal justice sentence 7#a7 ,in general ,not later than #a year after the date of the enactment of this ,act1 each ,federal district shall conduct a comprehensive review and issue an order expunging each conviction or adjudication of juvenile delinquency for a non-violent ,federal cannabis offense entered by each ,federal court in the district before the date of enactment of this ,act and on or after ,may #a1 #aiga4 ,each ,federal court shall also issue an order expunging any arrests associated with each expunged conviction or adjudication of juvenile delinquency4 7#b7 ,notification ,to the extent practicable1 each ,federal district shall notify each individual whose arrest1 conviction1 or adjudication of delinquency has been expunged pursuant to this subsection that their arrest1 conviction1 or adjudication of juvenile delinquency has been expunged1 and the effect of such expungement4 7#c7 ,right to petition court for expungement ,at any point after the date of enactment of this ,act1 any individual with a prior conviction or adjudication of juvenile delinquency for a non-violent ,federal cannabis offense1 who is not under a criminal justice sentence1 may file a motion for expungement4 ,if the expungement of such a conviction or adjudication of juvenile delinquency is required pursuant to this ,act1 the court shall expunge the conviction or adjudication1 and any associated arrests4 ,if the individual is indigent1 counsel shall be appointed to represent the individual in any proceedings under this subsection4 7#d7 ,sealed record ,the court shall seal all records related to a conviction or adjudication of juvenile delinquency that has been expunged under this subsection4 ,such records may only be made available by further order of the court4 7b7 ,sentencing review for individuals under a criminal justice sentence 7#a7 ,in general ,for any individual who is under a criminal justice sentence for a non-violent ,federal cannabis offense1 the court that imposed the sentence shall1 on motion of the individual1 the ,director of the ,bureau of ,prisons1 the attorney for the ,government1 or the court1 conduct a sentencing review hearing4 ,if the individual is indigent1 counsel shall be appointed to represent the individual in any sentencing review proceedings under this subsection4 7#b7 ,potential reduced resentencing ,after a sentencing hearing under paragraph 7#a71 a court shall-- 7,a7 expunge each conviction or adjudication of juvenile delinquency for a non-violent ,federal cannabis offense entered by the court before the date of enactment of this ,act1 and any associated arrest2 7,b7 vacate the existing sentence or disposition of juvenile delinquency and1 if applicable1 impose any remaining sentence or disposition of juvenile delinquency on the individual as if this ,act1 and the amendments made by this ,act1 were in effect at the time the offense was committed2 and 7,c7 order that all records related to a conviction or adjudication of juvenile delinquency that has been expunged or a sentence or disposition of juvenile delinquency that has been vacated under this ,act be sealed and only be made available by further order of the court4 7c7 ,effect of expungement ,an individual who has had an arrest1 a conviction1 or juvenile delinquency adjudication expunged under this section-- 7#a7 may treat the arrest1 conviction1 or adjudication as if it never occurred2 and 7#b7 shall be immune from any civil or criminal penalties related to perjury1 false swearing1 or false statements1 for a failure to disclose such arrest1 conviction1 or adjudication4 7d7 ,exception ,an individual who at sentencing received an aggravating role adjustment pursuant to ,united ,states ,sentencing ,guideline #c;,b#a4a7;a7 in relation to a ,federal cannabis offense conviction shall not be eligible for expungement of that ,federal cannabis offense conviction under this section4 7e7 ,definitions ,in this section3 7#a7 ,the term ,federal cannabis offense means an offense that is no longer punishable pursuant to this ,act or the amendments made under this ,act4 7#b7 ,the term expunge means1 with respect to an arrest1 a conviction1 or a juvenile delinquency adjudication1 the removal of the record of such arrest1 conviction1 or adjudication from each official index or public record4 7#c7 ,the term under a criminal justice sentence means1 with respect to an individual1 that the individual is serving a term of probation1 parole1 supervised release1 imprisonment1 official detention1 pre-release custody1 or work release1 pursuant to a sentence or disposition of juvenile delinquency imposed on or after the effective date of the ,controlled ,substances ,act 7,may #a1 #aiga74 7f7 ,study ,the ,comptroller ,general of the ,united ,states1 in consultation with the ,secretary of ,health and ,human ,services1 shall conduct a demographic study of individuals convicted of a ,federal cannabis offense4 ,such study shall include information about the age1 race1 ethnicity1 sex1 and gender identity of those individuals1 the type of community such users dwell in1 and such other demographic information as the ,comptroller ,general determines should be included4 7g7 ,report ,not later than #b years after the date of the enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall report to ,congress the results of the study conducted under subsection 7f74 #aa4 ,references in existing law to marijuana or marihuana ,wherever1 in the statutes of the ,united ,states or in the rulings1 regulations1 or interpretations of various administrative bureaus and agencies of the ,united ,states-- 7#a7 there appears or may appear the term marihuana or marijuana1 that term shall be struck and the term cannabis shall be inserted2 and 7#b7 there appears or may appear the term ,marihuana or ,marijuana1 that term shall be struck and the term ,cannabis shall be inserted4 #ab4 ,severability ,if any provision of this ,act or an amendment made by this ,act1 or any application of such provision to any person or circumstance1 is held to be unconstitutional1 the remainder of this ,act1 the amendments made by this ,act1 and the application of this ,act and the amendments made by this ,act to any other person or circumstance shall not be affected4 #ac4 ,cannabis offense defined ,for purposes of this ,act1 the term cannabis offense means a criminal offense related to cannabis-- 7#a7 that1 under ,federal law1 is no longer punishable pursuant to this ,act or the amendments made under this ,act2 or 7#b7 that1 under ,state law1 is no longer an offense or that was designated a lesser offense or for which the penalty was reduced under ,state law pursuant to or following the adoption of a ,state law authorizing the sale or use of cannabis4 #ad4 ,rulemaking ,unless otherwise provided in this ,act1 not later than #a year after the date of enactment of this ,act1 the ,department of the ,treasury1 the ,department of ,justice1 and the ,small ,business ,administration shall issue or amend any rules1 standard operating procedures1 and other legal or policy guidance necessary to carry out implementation of this ,act4 ,after the #a-year period1 any publicly issued sub-regulatory guidance1 including any compliance guides1 manuals1 advisories and notices1 may not be issued without #fj-;day notice to appropriate congressional committees4 ,notice shall include a description and justification for additional guidance4 #ae4 ,societal impact of marijuana legalization study ,the ,comptroller ,general of the ,united ,states shall1 not later than #b years after the date of enactment of this ,act1 provide to ,congress a study that addresses the societal impact of the legalization of recreational cannabis by ,states1 including-- 7#a7 sick days reported to employers2 7#b7 workers compensations claims2 7#c7 tax revenue remitted to ,states resulting from legal marijuana sales2 7#d7 changes in government spending related to enforcement actions and court proceedings2 7#e7 ,federal welfare assistance applications2 7#f7 rate of arrests related to methamphetamine possession2 7#g7 hospitalization rates related to methamphetamine and narcotics use2 7#h7 uses of marijuana and its byproducts for medical purposes2 7#i7 uses of marijuana and its byproducts for purposes relating to the health1 including the mental health1 of veterans2 7#aj7 arrest rates of individuals driving under the influence or driving while intoxicated by marijuana2 7#aa7 traffic-related deaths and injuries where the driver is impaired by marijuana2 7#ab7 arrest of minors for marijuana-related charges2 7#ac7 violent crime rates2 7#ad7 school suspensions1 expulsions1 and law enforcement referrals that are marijuana-related2 7#ae7 high school dropout rates2 7#af7 changes in district-wide and ,state-wide standardized test scores2 7#ag7 marijuana-related hospital admissions and poison control calls2 7#ah7 marijuana-related juvenile admittances into substance rehabilitation facilities and mental health clinics2 7#ai7 diversion of marijuana into neighboring ,states and drug seizures in neighboring ,states2 7#bj7 marijuana plants grown on public lands in contravention to ,federal and ,state laws2 and 7#ba7 court filings under a ,state's organized crime statutes4 ,passed the ,house of ,representatives ,december #d1 #bjbj4;,clerk4