,,iib  #aaf? ,,congress  #b;d ,session  
,h4 ,r4 #chhd  ,,9 ,,! ,,s5ate ,,( ,,!  
,,unit$ ,,/ates  ,decemb] #g1           
#bjbj,receiv$2 read twice & ref]r$ to ! 
,committee on ,f9ance  ,,an ,,act  ,to  
decrim9alize & des*$ule cannabis1 to    
provide = re9ve/m5t 9 c]ta9 p]sons      
adv]sely impact$ by ! ,w> on ,drugs1 to 
provide = expungem5t ( c]ta9 cannabis   
(f5ses1 & = o!r purposes4  #a4 ,%ort    
title ,?is ,act may be cit$ z !         
,m>ijuana ,opportunity ,re9ve/m5t &     
,expungem5t ,act ( #bjbj or ! ,,m ,act (
 #bjbj4  #b4 ,f9d+s ,! ,congress f9ds z 
foll[s3 7#a7 ,! communities t h be5 mo/ 
h>m$ by cannabis prohibition are b5efit+
 ! lea/ f ! legal m>ijuana m>ketplace4  
7#b7 ,a legacy ( racial & e?nic         
inju/ices1 comp\nd$ by !                
disproportionate collat]al consequ5ces (
 #hj ye>s ( cannabis prohibition        
en=cem5t1 n[ limits p>ticipation 9 !    
indu/ry4  7#c7 #cf ,/ates1 ! ,di/rict ( 
,columbia1 ,pu]to ,rico1 & ,guam h      
adopt$ laws all[+ legal access to       

cannabis1 & #ae ,/ates1 ! ,di/rict (    
,columbia1 & ! ,commonweal? ( ! ,nor!rn 
,m>iana ,isl&s h adopt$ laws legaliz+   
cannabis = adult recreational use4  7#d7
 ,a total ( #dg ,/ates h re=m$ _! laws  
p]ta9+ to cannabis despite ! ,s*$ule ,i 
/atus ( m>ijuana & its ,f$]al           
crim9alization4  7#e7 ,legal cannabis   
sales total$ #i4e billion 9 #bjag & are 
project$ to rea* #bc billion by #bjbb4  
7#f7 ,accord+ to ! ,am]ican ,civil      
,lib]ties ,union 7,,aclu71 en=c+        
cannabis prohibition laws co/s taxpay]s 
approximately #c4f billion a ye>4  7#g7 
,! cont9u$ en=cem5t ( cannabis          
prohibition laws results 9 ov] #fjj1jjj 
arre/s annually1 disproportionately     
impact+ p ( color :o are almo/ #d times 
m likely to be arre/$ = cannabis        
possession ?an _! ,:ite c\nt]p>ts1      
despite equal rates ( use across        
populations4  7#h7 ,p ( color h be5     
hi/orically t>get$ by discrim9atory     
s5t5c+ practices result+ 9 ,black m5    
receiv+ drug s5t5ces t are #ac4a p]c5t  

long] ?an s5t5ces impos$ = ,:ite m5 &   
,lat9os be+ ne>ly #f4e times m likely to
 receive a ,f$]al s5t5ce = cannabis     
possession ?an non-,hispanic ,:ites4    
7#i7 ,9 #bjac1 simple cannabis          
possession 0 ! f\r? mo/ common cause (  
deportation = any (f5se & ! mo/ common  
cause ( deportation = drug law          
violations4  7#aj7 ,few] ?an "o-fif? (  
cannabis bus9ess own]s id5tify z        
m9orities & only approximately #d p]c5t 
are black4  7#aa7 ,applicants = cannabis
 lic5ses are limit$ by num]\s laws1     
regulations1 & exorbitant p]mit         
applications1 lic5s+ fees1 & co/s 9 ^!  
,/ates1 :i* c require m ?an #gjj1jjj4   
7#ab7 ,hi/orically disproportionate     
arre/ & conviction rates make x         
p>ticul>ly difficult = p ( color to ent]
 ! legal cannabis m>ketplace1 z mo/     
,/ates b> ^! individuals f p>ticipat+4  
7#ac7 ,f$]al law sev]ely limits access  
to loans & capital = cannabis bus9esses1
 disproportionately impact+ m9ority     
small bus9ess own]s4  7#ad7 ,"s ,/ates &

 municipalities h tak5 proactive /eps to
 mitigate inequalities 9 ! legal        
cannabis m>ketplace & ensure equal      
p>ticipation 9 ! indu/ry4  #c4          
,decrim9alization ( cannabis  7a7       
,cannabis remov$ f s*$ule ( controll$   
sub/ances  7#a7 ,removal 9 /atute       
,subsection 7c7 ( s*$ule ,i ( section   
#bjb7;c7 ( ! ,controll$ ,sub/ances ,act 
7#ba ,u4,s4,c4 #hab7 is am5d$-- 7,a7 by 
/rik+ 7#aj7 ,m>ihuana42 &  7,b7 by /rik+
 7#ag7 ,tetrahydrocannab9ols1 except =  
tetrahydrocannab9ols 9 hemp 7z def9$ 9  
section #big;,a ( ! ,agricultural       
,m>ket+ ,act ( #aidf744  7#b7 ,removal f
 s*$ule ,n lat] ?an #ahj days aft] !    
date ( ! enactm5t ( ?is ,act1 !         
,attorney ,g5]al %all f9alize a rulemak+
 "u section #bja7;a77#b7 remov+ m>ihuana
 & tetrahydrocannab9ols f ! s*$ules (   
controll$ sub/ances4 ,= ! purposes ( !  
,controll$ ,sub/ances ,act1 m>ihuana &  
tetrahydrocannab9ols %all ea* be deem$  
to be a drug or o!r sub/ance t does n   
meet ! requirem5ts = inclusion 9 any    

s*$ule4 ,a rulemak+ "u ?is p>agraph %all
 be consid]$ to h tak5 effect z ( ! date
 ( enactm5t ( ?is ,act = purposes ( any 
(f5se committ$1 case p5d+1 conviction   
ent]$1 &1 9 ! case ( a juv5ile1 any     
(f5se committ$1 case p5d+1 &            
adjudication ( juv5ile del9qu5cy ent]$  
be=e1 on1 or aft] ! date ( enactm5t (   
?is ,act4  7b7 ,con=m+ am5dm5ts to      
controll$ sub/ances act ,! ,controll$   
,sub/ances ,act 7#ba ,u4,s4,c4 #hja et  
seq47 is am5d$-- 7#a7 9 section #ajb7dd7
 7#ba ,u4,s4,c4 #hjb7dd771 by /rik+     
m>ihuana12  7#b7 9 section #dja7;b7 7#ba
 ,u4,s4,c4 #hda7;b77-- 7,a7 9 p>agraph  
7#a7-- 7i7 9 subp>agraph 7,a7-- 7,i7 9  
clause 7vi71 by ins]t+ or aft] !        
semicolon2  7,,ii7 by /rik+ clause      
7vii72 &  7,,iii7 by r$esignat+ clause  
7viii7 z clause 7vii72  7ii7 9          
subp>agraph 7,b7-- 7,i7 9 clause 7vi71  
by ins]t+ or aft] ! semicolon2  7,,ii7  
by /rik+ clause 7vii72 &  7,,iii7 by    
r$esignat+ clause 7viii7 z clause 7vii72
  7iii7 9 subp>agraph 7,c71 9 ! fir/    

s5t5ce1 by /rik+ subp>agraphs 7,a71     
7,b71 & 7,d7 & ins]t+ subp>agraphs 7,a7 
& 7,b72  7iv7 by /rik+ subp>agraph 7,d72
  7v7 by r$esignat+ subp>agraph 7,e7 z  
subp>agraph 7,d72 &  7vi7 9 subp>agraph 
7,d77i71 z s r$esignat$1 by /rik+       
subp>agraphs 7,c7 & 7,d7 & ins]t+       
subp>agraph 7,c72  7,b7 by /rik+        
p>agraph 7#d72 &  7,c7 by r$esignat+    
p>agraphs 7#e71 7#f71 & 7#g7 z p>agraphs
 7#d71 7#e71 & 7#f71 respectively2  7#c7
 9 section #djb7;c77#b77;,b7 7#ba       
,u4,s4,c4 #hdb7;c77#b77;,b771 by /rik+ 1
 m>ihuana12  7#d7 9 section #djc7;d77#a7
 7#ba ,u4,s4,c4 #hdc7;d77#a771 by /rik+ 
1 m>ihuana12  7#e7 9 section #dah7;a7   
7#ba ,u4,s4,c4 #hei7;a771 by /rik+ ! la/
 s5t5ce2  7#f7 9 section #dai7;a7 7#ba  
,u4,s4,c4 #hfj7;a771 by /rik+ ! la/     
s5t5ce2  7#g7 9 section #dbb7;d7 7#ba   
,u4,s4,c4 #hfc7;d77-- 7,a7 9 ! matt]    
prec$+ p>agraph 7#a71 by /rik+          
m>ijuana12 &  7,b7 9 p>agraph 7#e71 by  
/rik+ 1 su* z a m>ihuana cig>ette12 &   
7#h7 9 section #eaf7;d7 7#ba ,u4,s4,c4  

#hhf7;d771 by /rik+ section #dja7;b77#f7
 ea* place ! t]m appe>s & ins]t+ section
 #dja7;b77#e74  7c7 ,o!r con=m+ am5dm5ts
  7#a7 ,national =e/ sy/em drug control 
act ( #aihf ,! ,national ,=e/ ,sy/em    
,drug ,control ,act ( #aihf 7#af        
,u4,s4,c4 #eei;b et seq47 is am5d$--    
7,a7 9 section #aejjb7;a7 7#af ,u4,s4,c4
 #eei;b7a77 by /rik+ m>ijuana & o!r2    
7,b7 9 section #aejjc7b7 7#af ,u4,s4,c4 
#eei;c7#b77 by /rik+ m>ijuana & o!r2 &  
7,c7 9 section #aejjd7b7 7#af ,u4,s4,c4 
#eei;d7#b77 by /rik+ m>ijuana & o!r4    
7#b7 ,int]ception ( communications      
,section #beaf ( title #ah1 ,unit$      
,/ates ,code1 is am5d$-- 7,a7 9         
subsection 7#a77;e71 by /rik+ m>ihuana12
 &  7,b7 9 subsection 7#b7 by /rik+     
m>ihuana4  7#c7 ,,fmcsa provisions  7,a7
 ,con=m+ am5dm5t ,section #cacja7e7 (   
title #di1 ,unit$ ,/ates ,code1 is am5d$
 by /rik+ section #cacjf1 & ins]t+      
sections #cacjf1 #cacjf;a1 & subsections
 7b7 & 7c7 ( section #cacaj14  7,b7     
,def9ition ,section #cacjf7;a7 ( title  

#di1 ,unit$ ,/ates ,code1 is am5d$-- 7i7
 by /rik+ means any sub/ance & ins]t+ ! 
foll[+3 means-- 7,a7 any sub/ance  2 &  
7ii7 by /rik+ ! p]iod at ! end & ins]t+ 
2 & 7,b7 any sub/ance n cov]$ "u        
subp>agraph 7,a7 t 0 a sub/ance "u su*  
section z ( ,decemb] #a1 #bjah1 &       
specifi$ by ! ,secret>y (               
,transportation4  4  7,c7               
,disqualifications ,section #cacaj7;b7 (
 title #di1 ,unit$ ,/ates ,code1 is     
am5d$ by add+ at ! end ! foll[+3  7#c7  
,9 ?is subsection & subsection 7c71 !   
t]m controll$ sub/ance has ! mean+ giv5 
su* t]m 9 section #cacjf7;a74  4  7#d7  
,,faa provisions ,section #deaja ( title
 #di1 ,unit$ ,/ates ,code1 is am5d$--   
7,a7 by /rik+ means any sub/ance &      
ins]t+ ! foll[+3 means-- 7,a7 any       
sub/ance  2 &  7,b7 by /rik+ ! p]iod at 
! end & ins]t+ 2 & 7,b7 any sub/ance n  
cov]$ "u subp>agraph 7,a7 t 0 a sub/ance
 "u su* section z ( ,decemb] #a1 #bjah1 
& specifi$ by ! ,secret>y (             
,transportation4  4  7#e7 ,,fra         

provisions ,section #bjadj7;a7 ( title  
#di1 ,unit$ ,/ates ,code1 is am5d$--    
7,a7 by /rik+ means any sub/ance &      
ins]t+ ! foll[+3 means-- 7,a7 any       
sub/ance  2 &  7,b7 by /rik+ ! p]iod at 
! end & ins]t+ 2 & 7,b7 any sub/ance n  
cov]$ "u subp>agraph 7,a7 t 0 a sub/ance
 "u su* section z ( ,decemb] #a1 #bjah1 
& specifi$ by ! ,secret>y (             
,transportation4  4  7#f7 ,,fta         
provisions ,section #ecca7;a77#a7 (     
title #di1 ,unit$ ,/ates ,code1 is      
am5d$-- 7,a7 by /rik+ means any sub/ance
 & ins]t+ ! foll[+3 means-- 7,a7 any    
sub/ance  2 &  7,b7 by /rik+ ! p]iod at 
! end & ins]t+ 2 & 7,b7 any sub/ance n  
cov]$ "u subp>agraph 7,a7 t 0 a sub/ance
 "u su* section z ( ,decemb] #a1 #bjah1 
& ^: use ! ,secret>y ( ,transportation  
decides has a risk to transportation    
safety4  4  7d7 ,retroactivity ,!       
am5dm5ts made by ?is section to !       
,controll$ ,sub/ances ,act 7#ba         
,u4,s4,c4 #hja et seq47 are retroactive 
& %all apply to any (f5se committ$1 case

 p5d+1 conviction ent]$1 &1 9 ! case ( a
 juv5ile1 any (f5se committ$1 case p5d+1
 or adjudication ( juv5ile del9qu5cy    
ent]$ be=e1 on1 or aft] ! date (        
enactm5t ( ?is ,act4  7e7 ,effect on o!r
 law ,no?+ 9 ?is subtitle %all affect or
 modify-- 7#a7 ! ,f$]al ,food1 ,drug1 & 
,cosmetic ,act 7#ba ,u4,s4,c4 #cja et   
seq472  7#b7 section #cea ( ! ,public   
,heal? ,s]vice ,act 7#db ,u4,s4,c4      
#bfb72 or  7#c7 ! au?ority ( !          
,commission] ( ,food & ,drugs & !       
,secret>y ( ,heal? & ,human ,s]vices--  
7,a7 "u-- 7i7 ! ,f$]al ,food1 ,drug1 &  
,cosmetic ,act 7#ba ,u4,s4 #cja et      
seq472 or  7ii7 section #cea ( ! ,public
 ,heal? ,s]vice ,act 7#db ,u4,s4,c4     
#bfb72 or  7,b7 to promulgate ,f$]al    
regulations & guidel9es t relate to     
products conta9+ cannabis or            
cannabis-d]iv$ comp\nds "u ! ,act       
describ$ 9 subp>agraph 7,a77i7 or !     
section describ$ 9 subp>agraph 7,a77ii74
  7f7 ,public meet+s ,n lat] ?an "o ye> 
aft] ! date ( enactm5t ( ?is ,act1 !    

,secret>y ( ,heal? & ,human ,s]vices1   
act+ ?r\gh ! ,commission] ( ,food &     
,drugs1 %all hold n less ?an "o public  
meet+ to address ! regulation1 safety1  
manufactur+1 product quality1 m>ket+1   
label+1 & sale ( products conta9+       
cannabis or cannabis-d]iv$ comp\nds4    
7g7 ,special rule = f$]al employee te/+ 
,section #ejc ( ! ,supplem5tal          
,appropriations ,act1 #aihg 7#e         
,u4,s4,c4 #gcja note7 is am5d$ by add+  
at ! end ! foll[+3  7h7 ,m>ijuana  7#a7 
,cont9u$ te/+ ,not)/&+ ! ,m>ijuana      
,opportunity ,re9ve/m5t & ,expungem5t   
,act ( #bjbj & ! am5dm5ts made !reby1 ! 
,secret>y ( ,heal? & ,human ,s]vices may
 cont9ue to include m>ijuana = purposes 
( drug te/+ ( ,f$]al employees subject  
to ?is section1 ,executive ,ord] #abefd1
 or o!r applicable ,f$]al laws & ord]s4 
7#b7 ,def9ition ,! t]m m>ijuana has !   
mean+ giv5 to ! t]m m>ihuana 9 section  
#ajb ( ! ,controll$ ,sub/ances ,act 7#ba
 #f ,u4,s4,c4 #hjb7 on ! day be=e ! date
 ( enactm5t ( ! ,m>ijuana ,opportunity  

,re9ve/m5t & ,expungem5t ,act ( #bjbj4  
4  7h7 ,special rule = c]ta9 regulations
  7#a7 ,9 g5]al ,! am5dm5ts made by ?is 
section may n be con/ru$ to abridge !   
au?ority ( ! ,secret>y (                
,transportation1 or ! ,secret>y ( !     
dep>tm5t 9 :i* ! ,coa/ ,gu>d is op]at+1 
to regulate & scre5 = ! use ( a         
controll$ sub/ance4  7#b7 ,controll$    
sub/ance def9$ ,9 ?is subsection1 ! t]m 
controll$ sub/ance means-- 7,a7 any     
sub/ance cov]$ "u section #ajb ( !      
,controll$ ,sub/ances ,act 7#ba         
,u4,s4,c4 #hjb7 on ! day be=e ! date (  
enactm5t ( ?is ,act2 &  7,b7 any        
sub/ance n cov]$ "u subp>agraph 7,a7 t 0
 a sub/ance cov]$ "u section #ajb ( !   
,controll$ ,sub/ances ,act 7#ba         
,u4,s4,c4 #hjb7 on ,decemb] #a1 #bjah1 &
 specifi$ by ! ,secret>y (              
,transportation4  #d4 ,demographic data 
( cannabis bus9ess own]s & employees    
7a7 ,9 g5]al ,! ,bureau ( ,labor        
,/ati/ics %all regul>ly compile1 ma9ta91
 & make public data on ! demographics   

(-- 7#a7 individuals :o are bus9ess     
own]s 9 ! cannabis indu/ry2 &  7#b7     
individuals :o are employ$ 9 ! cannabis 
indu/ry4  7b7 ,demographic data ,! data 
collect$ "u subsection 7a7 %all include 
data reg>d+-- 7#a7 age2  7#b7           
c]tifications & lic5ses2  7#c7          
disability /atus2  7#d7 educational     
atta9m5t2  7#e7 family & m>ital /atus2  
7#f7 nativity2  7#g7 race & ,hispanic   
e?nicity2  7#h7 s*ool enrollm5t2  7#i7  
vet]an /atus2 &  7#aj7 sex4  7c7        
,confid5tiality ,! "n1 address1 & o!r   
id5tify+ in=mation ( individuals employ$
 9 ! cannabis indu/ry %all be kept      
confid5tial by ! ,bureau & n be made    
available to ! public4  7d7 ,def9itions 
,9 ?is section3 7#a7 ,cannabis ,! t]m   
cannabis means ei!r m>ijuana or cannabis
 z def9$ "u ! ,/ate law au?oriz+ ! sale 
or use ( cannabis 9 :i* ! individual or 
entity is locat$4  7#b7 ,cannabis       
indu/ry ,! t]m cannabis indu/ry means an
 individual or entity t is lic5s$ or    
p]mitt$ "u a ,/ate or local law to      

engage 9 comm]cial cannabis-relat$      
activity4  7#c7 ,own] ,! t]m own] means 
an individual or entity t is def9$ z an 
own] "u ! ,/ate or local law :]e !      
individual or bus9ess is lic5s$ or      
p]mitt$4  #e4 ,creation ( ,opportunity  
,tru/ ,fund & imposition ( taxes )      
respect to cannabis products  7a7       
,e/abli%m5t ( tru/ fund ,sub*apt] ,a (  
*apt] #ih ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #ieab4 ,opportunity ,tru/
 ,fund  7a7 ,creation ( ,tru/ ,fund ,!re
 is e/abli%$ 9 ! ,treasury ( ! ,unit$   
,/ates a tru/ fund to be kn[n z !       
,opportunity ,tru/ ,fund 7ref]r$ to 9   
?is section z ! ,tru/ ,fund71 consi/+ ( 
su* am\nts z may be appropriat$ or      
cr$it$ to su* fund z provid$ 9 ?is      
section or section #ifjb7;b74  7b7      
,transf]s to ,tru/ ,fund ,!re are h]eby 
appropriat$ to ! ,tru/ ,fund am\nts     
equival5t to ! net rev5ues receiv$ 9 !  
,treasury f ! taxes impos$ "u *apt] #ef4
  7c7 ,exp5ditures ,am\nts 9 ! ,tru/    

,fund %all be available1 )\t fur!r      
appropriation1 only z foll[s3 7#a7 #ej  
p]c5t to ! ,attorney ,g5]al to c>ry out 
section #cjeb7;a7 ( "p ,,oo ( ! ,omnibus
 ,crime ,control & ,safe ,/reets ,act ( 
#aifh4  7#b7 #aj p]c5t to ! ,attorney   
,g5]al to c>ry out section #cjeb7;b7 (  
"p ,,oo ( ! ,omnibus ,crime ,control &  
,safe ,/reets ,act ( #aifh4  7#c7 #bj   
p]c5t to ! ,adm9i/rator ( ! ,small      
,bus9ess ,adm9i/ration to c>ry out      
section #f7;b77#a7 ( ! ,m>ijuana        
,opportunity ,re9ve/m5t & ,expungem5t   
,act ( #bjbj4  7#d7 #bj p]c5t to !      
,adm9i/rator ( ! ,small ,bus9ess        
,adm9i/ration to c>ry out section       
#f7;b77#b7 ( ! ,m>ijuana ,opportunity   
,re9ve/m5t & ,expungem5t ,act ( #bjbj4  
4  7b7 ,cannabis ,rev5ue & ,regulation  
,act ,subtitle ,e ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new *apt]3  #ef ,cannabis      
,products  ,sub*apt] ,a4 ,tax on        
,cannabis ,products ,sub*apt] ,b4       
,occupational ,tax ,sub*apt] ,c4 ,bond &

 ,p]mits ,sub*apt] ,d4 ,op]ations       
,sub*apt] ,e4 ,p5alties  ,a ,tax on     
,cannabis ,products  ,sec4 #eija4       
,imposition ( tax4 ,sec4 #eijb4         
,def9itions4 ,sec4 #eijc4 ,liability &  
me?od ( paym5t4 ,sec4 #eijd4 ,exemption 
f tax2 transf]s 9 bond4 ,sec4 #eije4    
,cr$it1 refund1 or drawback ( tax4      
#eija4 ,imposition ( tax  7a7           
,imposition ( tax ,!re is h]eby impos$  
on any cannabis product produc$ 9 or    
import$ into ! ,unit$ ,/ates a tax equal
 to-- 7#a7 = any su* product remov$ dur+
 ! fir/ #e cal5d> ye>s end+ aft] ! date 
on :i* ?is *apt] becomes effective1 !   
applicable p]c5tage ( su* product's     
removal price1 &  7#b7 = any product    
remov$ dur+ any cal5d> ye> aft] ! cal5d>
 ye>s describ$ 9 p>agraph 7#a71 !       
applicable equival5t am\nt4  7b7        
,applicable p]c5tage ,= purposes (      
subsection 7a77#a71 ! applicable        
p]c5tage %all be det]m9$ z foll[s3 7#a7 
,= any cannabis product remov$ dur+ !   
fir/ #b cal5d> ye>s end+ aft] ! date on 

:i* ?is *apt] becomes effective1 #e     
p]c5t4  7#b7 ,= any cannabis product    
remov$ dur+ ! cal5d> ye> aft] ! la/     
cal5d> ye> to :i* p>agraph 7#a7 applies1
 #f p]c5t4  7#c7 ,= any cannabis product
 remov$ dur+ ! cal5d> ye> aft] ! cal5d> 
ye> to :i* p>agraph 7#b7 applies1 #g    
p]c5t4  7#d7 ,= any cannabis product    
remov$ dur+ ! cal5d> ye> aft] ! cal5d>  
ye> to :i* p>agraph 7#c7 applies1 #h    
p]c5t4  7c7 ,applicable equival5t am\nt 
7#a7 ,9 g5]al ,= purposes ( subsection  
7a77#b71 ! t]m applicable equival5t     
am\nt means1 ) respect to any cannabis  
product remov$ dur+ any cal5d> ye>1 an  
am\nt equal to-- 7,a7 9 ! case ( any    
cannabis product n describ$ 9           
subp>agraph 7,b71 ! product ( !         
applicable rate p] ounce multipli$ by ! 
numb] ( ounces ( su* product 7& a       
proportionate tax at ! l rate on all    
fractional p>ts ( an ounce ( su*        
product71 &  7,b7 9 ! case ( any        
,,?c-measurable cannabis product1 !     
product ( ! applicable rate p] gram     

multipli$ by ! numb] ( grams (          
tetrahydrocannab9ol 9 su* product 7& a  
proportionate tax at ! l rate on all    
fractional p>ts ( a gram (              
tetrahydrocannab9ol 9 su* product74     
7#b7 ,applicable rates  7,a7 ,9 g5]al ,=
 purposes ( p>agraph 7#a77;,a71 ! t]m   
applicable rate p] ounce means1 )       
respect to any cannabis product remov$  
dur+ any cal5d> ye>1 #h p]c5t ( !       
prevail+ sales price ( cannabis fl[]s   
sold 9 ! ,unit$ ,/ates dur+ ! #ab-mon?  
p]iod end+ "o cal5d> qu>t] be=e su*     
cal5d> ye>1 express$ on a p] ounce      
basis1 z det]m9$ by ! ,secret>y4  7,b7  
,,?c-measurable cannabis products ,=    
purposes ( p>agraph 7#a77;,b71 ! t]m    
applicable rate p] gram means1 ) respect
 to any cannabis product remov$ dur+ any
 cal5d> ye>1 #h p]c5t ( ! prevail+ sales
 price ( tetrahydrocannab9ol sold 9 !   
,unit$ ,/ates dur+ ! #ab-mon? p]iod end+
 "o cal5d> qu>t] be=e su* cal5d> ye>1   
express$ on a p] gram basis1 z det]m9$  
by ! ,secret>y4  7d7 ,"t ( atta*m5t on  

cannabis products ,! tax "u ?is section 
%all atta* to any cannabis product z    
soon z su* product is 9 exi/5ce z su*1  
:e!r x be subsequ5tly sep>at$ or        
transf]r$ into any o!r sub/ance1 ei!r 9 
! process ( orig9al production or by any
 subsequ5t process4  #eijb4 ,def9itions 
7a7 ,def9itions relat$ to cannabis      
products ,= purposes ( ?is *apt]-- 7#a7 
,cannabis product  7,a7 ,9 g5]al ,except
 z provid$ 9 subp>agraph 7,b71 ! t]m    
cannabis product means any article :i*  
conta9s 7or consi/s (7 cannabis4  7,b7  
,exceptions ,! t]m cannabis product %all
 n include an ,,fda-approv$ article or  
indu/rial hemp4  7,c7 ,,fda-approv$     
article ,! t]m ,,fda-approv$ article    
means any article if ! produc] or       
import] !re( demon/rates to !           
satisfaction ( ! ,secret>y ( ,heal? &   
,human ,s]vices t su* article is-- 7i7 a
 drug-- 7,i7 t is approv$ "u section    
#eje ( ! ,f$]al ,food1 ,drug1 &         
,cosmetic ,act or lic5s$ "u section #cea
 ( ! ,public ,heal? ,s]vice ,act1 or    

7,,ii7 = :i* an inve/igational use      
exemption has be5 au?oriz$ "u section   
#eje7;i7 ( ! ,f$]al ,food1 ,drug1 &     
,cosmetic ,act or "u section #cea7;a7 ( 
! ,public ,heal? ,s]vice ,act1 or  7ii7 
a comb9ation product 7z describ$ 9      
section #ejc7;g7 ( ! ,f$]al ,food1      
,drug1 & ,cosmetic ,act71 ! con/itu5t   
p>ts ( :i* 7 approv$ or cle>$ "u section
 #eje1 #eaj7k71 or #eae ( su* ,act4     
7,d7 ,indu/rial hemp ,! t]m indu/rial   
hemp means ! plant ,cannabis sativa ,l4 
& any "p ( su* plant1 :e!r gr[+ or n1 ) 
a delta-#i tetrahydrocannab9ol          
conc5tration ( n m ?an #j4c p]c5t on a  
dry weight basis4  7#b7 ,,?c-measurable 
cannabis product ,! t]m ,,?c-measurable 
cannabis product means any cannabis     
product-- 7,a7 ) respect to :i* !       
,secret>y has made a det]m9ation t !    
am\nt ( tetrahydrocannab9ol 9 su*       
product c be measur$ ) a high degree (  
accuracy1 or  7,b7 :i* is n cannabis    
fl[] & ! conc5tration (                 
tetrahydrocannab9ol 9 :i* is            

significantly high] ?an ! av]age su*    
conc5tration 9 cannabis fl[]4  7#c7     
,cannabis ,! t]m cannabis has ! mean+   
giv5 su* t]m "u section #ajb7af7 ( !    
,controll$ ,sub/ances ,act 7#ba         
,u4,s4,c4 #hjb7af774  7b7 ,def9itions   
relat$ to cannabis ent]prises ,=        
purposes ( ?is *apt]-- 7#a7 ,cannabis   
ent]prise ,! t]m cannabis ent]prise     
means a produc]1 import]1 or export     
w>eh\se proprietor4  7#b7 ,produc]  7,a7
 ,9 g5]al ,! t]m produc] means any p]son
 :o plants1 cultivates1 h>ve/s1 gr[s1   
manufactures1 produces1 comp\nds1       
conv]ts1 processes1 prep>es1 or packages
 any cannabis product4  7,b7 ,p]sonal   
use exception ,subject to regulation    
prescrib$ by ! ,secret>y1 ! t]m produc] 
%all n include any individual o!rwise   
describ$ 9 subp>agraph 7,a7 if ! only   
cannabis product describ$ 9 su*         
subp>agraph ) respect to su* individual 
is = p]sonal or family use & n = sale4  
7#c7 ,import] ,! t]m import] means any  
p]son :o-- 7,a7 is 9 ! ,unit$ ,/ates &  

to :om non-tax-paid cannabis products1  
produc$ 9 a =eign c\ntry or a possession
 ( ! ,unit$ ,/ates1 are %ipp$ or        
consign$1  7,b7 removes cannabis        
products = sale or consumption 9 !      
,unit$ ,/ates f a cu/oms bond$ w>eh\se1 
or  7,c7 smuggles or o!rwise unlawfully 
br+s any cannabis product into ! ,unit$ 
,/ates4  7#d7 ,export w>eh\se proprietor
  7,a7 ,9 g5]al ,! t]m export w>eh\se   
proprietor means any p]son :o op]ates an
 export w>eh\se4  7,b7 ,export w>eh\se  
,! t]m export w>eh\se means a bond$     
int]nal rev5ue w>eh\se = ! /orage (     
cannabis products1 ^u :i* ! int]nal     
rev5ue tax has n be5 paid-- 7i7 =       
subsequ5t %ipm5t to a =eign c\ntry or a 
possession ( ! ,unit$ ,/ates1 or  7ii7 =
 consumption beyond ! jurisdiction ( !  
int]nal rev5ue laws ( ! ,unit$ ,/ates4  
7#e7 ,cannabis production facility ,!   
t]m cannabis production facility means  
an e/abli%m5t :i* is qualifi$ "u        
sub*apt] ,c to p]=m any op]ation = :i*  
su* qualification is requir$ "u su*     

sub*apt]4  7c7 ,o!r def9itions ,=       
purposes ( ?is *apt]-- 7#a7 ,produce ,! 
t]m produce includes any activity       
describ$ 9 subsection 7b77#b77;,a74     
7#b7 ,removal2 remove ,! t]ms removal or
 remove means-- 7,a7 ! transf] (        
cannabis products f ! premises ( a      
produc] 7or ! transf] ( su* products f !
 bond$ premises ( a produc] to a        
non-bond$ premises ( su* produc]71  7,b7
 release ( su* products f cu/oms cu/ody1
 or  7,c7 smuggl+ or o!r unlawful       
importation ( su* products into ! ,unit$
 ,/ates4  7#c7 ,removal price ,! t]m    
removal price means-- 7,a7 except z     
o!rwise provid$ 9 ?is p>agraph1 ! price 
= :i* ! cannabis product is sold 9 !    
sale :i* occurs 9 connection ) ! removal
 ( su* product1  7,b7 9 ! case ( any su*
 sale :i* is describ$ 9 section         
#eijc7;c71 ! price det]m9$ "u su*       
section1 &  7,c7 if !re is no sale :i*  
occurs 9 connection ) su* removal1 !    
price :i* w\ld be det]m9$ "u section    
#eijc7;c7 if su* product 7 sold at a    

price :i* _c be det]m9$4  #eijc4        
,liability & me?od ( paym5t  7a7        
,liability = tax  7#a7 ,orig9al         
liability ,! produc] or import] ( any   
cannabis product %all be liable = !     
taxes impos$ !reon by section #eija4    
7#b7 ,transf] ( liability  7,a7 ,9 g5]al
 ,:5 cannabis products are transf]r$1   
)\t paym5t ( tax1 pursuant to subsection
 7b7 or 7c7 ( section #eijd-- 7i7 except
 z provid$ 9 clause 7ii71 ! transf]ee   
%all become liable = ! tax ^u receipt by
 ! transf]ee ( su* articles1 & !        
transf]or %all !reupon be reliev$ ( _!  
liability = su* tax1 &  7ii7 9 ! case ( 
cannabis products :i* are releas$ 9 bond
 f cu/oms cu/ody = transf] to ! bond$   
premises ( a produc]1 ! transf]ee %all  
become liable = ! tax on su* articles ^u
 release f cu/oms cu/ody1 & ! import]   
%all !reupon be reliev$ ( _! liability =
 su* tax4  7,b7 ,return$ to bond ,all   
provisions ( ?is *apt] applicable to    
cannabis products 9 bond %all be        
applicable to su* articles return$ to   

bond ^u )drawal f ! m>ket or return$ to 
bond aft] previ\s removal = a tax-exempt
 purpose4  7b7 ,me?od ( paym5t ( tax    
7#a7 ,9 g5]al  7,a7 ,taxes paid on basis
 ( return ,! taxes impos$ by section    
#eija %all be paid on ! basis ( return4 
,! ,secret>y %all1 by regulations1      
prescribe ! p]iod or ! ev5t to be cov]$ 
by su* return & ! in=mation to be       
furni%$ on su* return4  7,b7            
,application to transf]ees ,9 ! case (  
any transf] to :i* subsection           
7a77#b77;,a7 applies1 ! tax "u section  
#eija on ! transf]ee %all 7if n o!rwise 
reliev$ by reason ( a subsequ5t transf] 
to :i* su* subsection applies7 be impos$
 ) respect to ! removal ( ! cannabis    
product f ! bond$ premises ( !          
transf]ee4  7,c7 ,po/ponem5t ,any       
po/ponem5t "u ?is subsection ( ! paym5t 
( taxes det]m9$ at ! "t ( removal %all  
be condition$ ^u ! fil+ ( su* additional
 bonds1 & ^u compliance ) su*           
requirem5ts1 z ! ,secret>y may prescribe
 = ! protection ( ! rev5ue4 ,! ,secret>y

 may1 by regulations1 require paym5t (  
tax on ! basis ( a return prior to      
removal ( ! cannabis products :]e a     
p]son defaults 9 ! po/pon$ paym5t ( tax 
on ! basis ( a return "u ?is subsection 
or regulations prescrib$ !reund]4  7,d7 
,adm9i/ration & p5alties ,all           
adm9i/rative & p5alty provisions ( ?is  
title1 ins(> z applicable1 %all apply to
 any tax impos$ by section #eija4  7#b7 
,"t = paym5t ( taxes  7,a7 ,9 g5]al     
,except z o!rwise provid$ 9 ?is         
p>agraph1 9 ! case ( taxes on cannabis  
products remov$ dur+ any semimon?ly     
p]iod "u bond = def]r$ paym5t ( tax1 !  
la/ day = paym5t ( su* taxes %all be !  
#ad? day aft] ! la/ day ( su* semimon?ly
 p]iod4  7,b7 ,import$ articles ,9 !    
case ( cannabis products :i* are import$
 into ! ,unit$ ,/ates1 ! foll[+         
provisions %all apply3 7i7 ,9 g5]al ,!  
la/ day = paym5t ( tax %all be ! #ad?   
day aft] ! la/ day ( ! semimon?ly p]iod 
dur+ :i* ! article is ent]$ into !      
cu/oms t]ritory ( ! ,unit$ ,/ates4  7ii7

 ,special rule = entry ( w>eh\s+ ,except
 z provid$ 9 clause 7iv71 9 ! case ( an 
entry = w>eh\s+1 ! la/ day = paym5t (   
tax %all n be lat] ?an ! #ad? day aft] !
 la/ day ( ! semimon?ly p]iod dur+ :i* !
 article is remov$ f ! fir/ su* w>eh\se4
  7iii7 ,=eign trade zones ,except z    
provid$ 9 clause 7iv7 & 9 regulations   
prescrib$ by ! ,secret>y1 articles      
br\ght into a =eign trade zone %all1    
not)/&+ any o!r provision ( law1 be     
treat$ = purposes ( ?is subsection z if 
su* zone 7 a s+le cu/oms w>eh\se4  7iv7 
,exception = articles de/9$ = export    
,clauses 7ii7 & 7iii7 %all n apply to   
any article :i* is %[n to ! satisfaction
 ( ! ,secret>y to be de/9$ = export4    
7,c7 ,cannabis products br\ght into !   
,unit$ ,/ates f ,pu]to ,rico ,9 ! case (
 cannabis products :i* are br\ght into !
 ,unit$ ,/ates f ,pu]to ,rico & subject 
to tax "u section #gfeb1 ! la/ day =    
paym5t ( tax %all be ! #ad? day aft] !  
la/ day ( ! semimon?ly p]iod dur+ :i* ! 
article is br\ght into ! ,unit$ ,/ates4 

7,d7 ,special rule :]e due date falls on
 ,saturday1 ,sunday1 or holiday ,not)/&+
 section #gejc1 if1 b = ?is subp>agraph1
 ! due date "u ?is p>agraph w\ld fall on
 a ,saturday1 ,sunday1 or a legal       
holiday 7z def9$ 9 section #gejc71 su*  
due date %all be ! imm$iately prec$+ day
 :i* is n a ,saturday1 ,sunday1 or su* a
 holiday4  7,e7 ,special rule =         
unlawfully produc$ cannabis products ,9 
! case ( any cannabis products produc$ 9
 ! ,unit$ ,/ates at any place o!r ?an ! 
premises ( a produc] t has fil$ ! bond &
 obta9$ ! p]mit requir$ "u ?is *apt]1   
tax %all be due & payable imm$iately ^u 
production4  7#c7 ,paym5t by electronic 
fund transf] ,any p]son :o 9 any        
#ab-mon? p]iod1 end+ ,decemb] #ca1 0    
liable = a gross am\nt equal to or      
exce$+ #e1jjj1jjj 9 taxes impos$ on     
cannabis products by section #eija 7or  
section #gfeb7 %all pay su* taxes dur+ !
 succe$+ cal5d> ye> by electronic fund  
transf] 7z def9$ 9 section              
#ejfa7;e77#b77 to a ,f$]al ,res]ve      

,bank4 ,rules simil> to ! rules (       
section #ejfa7;e77#c7 %all apply to !   
#e1jjj1jjj am\nt specifi$ 9 ! prec$+    
s5t5ce4  7c7 ,det]m9ation ( ,price  7#a7
 ,con/ructive sale price  7,a7 ,9 g5]al 
,if an article is sold directly to      
consum]s1 sold on consignm5t1 or sold   
7o!rwise ?an ?r\gh an arm's l5g?        
transaction7 at less ?an ! fair m>ket   
price1 or if ! price = :i* ! article    
sold _c be det]m9$1 ! tax "u section    
#eija7;a7 %all be comput$ on ! price =  
:i* su* articles are sold1 9 ! ord9>y   
c\rse ( trade1 by produc]s !re(1 z      
det]m9$ by ! ,secret>y4  7,b7 ,arm's    
l5g?  7i7 ,9 g5]al ,= purposes ( ?is    
section1 a sale is consid]$ to be made  
"u circum/ances o!rwise ?an at arm's    
l5g? if-- 7,i7 ! p>ties are memb]s ( !  
same controll$ gr\p1 :e!r or n su*      
control is actually ex]cis$ to influ5ce 
! sale price1 or  7,,ii7 ! p>ties are   
memb]s ( a family1 z def9$ 9 section    
#bfg7;c77#d71 or  7,,iii7 ! sale is made
 pursuant to special arrangem5ts betwe5 

a produc] & a pur*as]4  7ii7 ,controll$ 
gr\ps  7,i7 ,9 g5]al ,! t]m controll$   
gr\p has ! mean+ giv5 to su* t]m by     
subsection 7a7 ( section #aefc1 except t
 m ?an #ej p]c5t %all be sub/itut$ = at 
lea/ #hj p]c5t ea* place x appe>s 9 su* 
subsection4  7,,ii7 ,controll$ gr\ps :i*
 include non9corporat$ p]sons ,"u       
regulations prescrib$ by ! ,secret>y1   
pr9ciples simil> to ! pr9ciples (       
subclause 7,i7 %all apply to a gr\p (   
p]sons "u common control :]e "o or m (  
su* p]sons is n a corporation4  7#b7    
,conta9]s1 pack+ & transportation *>ges 
,9 det]m9+1 = ! purposes ( ?is *apt]1 ! 
price = :i* an article is sold1 !re %all
 be includ$ any *>ge = cov]+s & conta9]s
 ( :atev] nature1 & any *>ge incid5t to 
plac+ ! article 9 condition pack$ ready 
= %ipm5t1 b !re %all be exclud$ ! am\nt 
( tax impos$ by ?is *apt]1 :e!r or n    
/at$ z a sep>ate *>ge4 ,a               
transportation1 deliv]y1 insurance1     
in/allation1 or o!r *>ge 7n requir$ by !
 prec$+ s5t5ce to be includ$7 %all be   

exclud$ f ! price only if ! am\nt !re(  
is e/abli%$ to ! satisfaction ( !       
,secret>y 9 accordance ) regulations4   
7#c7 ,det]m9ation ( applicable equival5t
 am\nts ,p>agraphs 7#a7 & 7#b7 %all     
apply = purposes ( section #eija7;c7    
only to ! ext5t t ! ,secret>y det]m9es  
appropriate4  7d7 ,p>tial paym5ts &     
in/allm5t acc\nts  7#a7 ,p>tial paym5ts 
,9 ! case (-- 7,a7 a contract = ! sale (
 an article :]e9 x is provid$ t ! price 
%all be paid by in/allm5ts & title to ! 
article sold does n pass until a future 
date not)/&+ p>tial paym5t by           
in/allm5ts1  7,b7 a conditional sale1 or
  7,c7 a *attel mortgage arrangem5t :]e9
 x is provid$ t ! sales price %all be   
paid 9 in/allm5ts1  !re %all be paid ^u 
ea* paym5t ) respect to ! article a     
p]c5tage ( su* paym5t equal to ! rate ( 
tax 9 effect on ! date su* paym5t is    
due4  7#b7 ,sales ( in/allm5t acc\nts   
,if in/allm5t acc\nts1 ) respect to     
paym5ts on :i* tax is be+ comput$ z     
provid$ 9 p>agraph 7#a71 are sold or    

o!rwise dispos$ (1 !n p>agraph 7#a7 %all
 n apply ) respect to any subsequ5t     
paym5ts on su* acc\nts 7o!r ?an         
subsequ5t paym5ts on return$ acc\nts )  
respect to :i* cr$it or refund is       
all[able by reason ( section            
#fdaf7;b77#e771 b in/ead-- 7,a7 !re %all
 be paid an am\nt equal to ! diff]5ce   
betwe5-- 7i7 ! tax previ\sly paid on !  
paym5ts on su* in/allm5t acc\nts1 &     
7ii7 ! total tax :i* w\ld be payable if 
su* in/allm5t acc\nts _h n be5 sold or  
o!rwise dispos$ ( 7comput$ z provid$ 9  
p>agraph 7#a771 except t  7,b7 if any   
su* sale is pursuant to ! ord] (1 or    
subject to ! approval (1 a c\rt (       
compet5t jurisdiction 9 a bankruptcy or 
insolv5cy proce$+1 ! am\nt comput$ "u   
subp>agraph 7,a7 %all n exce$ ! sum ( ! 
am\nts comput$ by multiply+-- 7i7 !     
proportionate %>e ( ! am\nt = :i* su*   
acc\nts are sold :i* is allocable to ea*
 unpaid in/allm5t paym5t1 by  7ii7 !    
rate ( tax "u ?is *apt] 9 effect on !   
date su* unpaid in/allm5t paym5t is or 0

 due4  ,! sum ( ! am\nts payable "u ?is 
subsection 9 respect ( ! sale ( any     
article %all n exce$ ! total tax4       
#eijd4 ,exemption f tax2 transf]s 9 bond
  7a7 ,exemption f tax ,cannabis        
products on :i* ! int]nal rev5ue tax has
 n be5 paid or det]m9$ may1 subject to  
su* regulations z ! ,secret>y %all      
prescribe1 be )drawn f ! bond$ premises 
( any produc] 9 approv$ conta9]s free ( 
tax & n = resale = use-- 7#a7           
exclusively 9 sci5tific rese>* by a     
laboratory1  7#b7 by a proprietor ( a   
cannabis production facility 9 rese>*1  
developm5t1 or te/+ 7o!r ?an consum]    
te/+ or o!r m>ket analysis7 ( processes1
 sy/ems1 mat]ials1 or equipm5t1 relat+  
to cannabis or cannabis op]ations1 "u   
su* limitations & conditions z to       
quantities1 use1 & acc\ntability z !    
,secret>y may by regulations require = !
 protection ( ! rev5ue1 or  7#c7 by !   
,unit$ ,/ates or any gov]nm5tal ag5cy   
!re(1 any ,/ate1 any political          
subdivision ( a ,/ate1 or ! ,di/rict (  

,columbia1 = nonconsumption purposes4   
7b7 ,cannabis products transf]r$ or     
remov$ 9 bond f dome/ic factories &     
export w>eh\ses  7#a7 ,9 g5]al ,subject 
to su* regulations & "u su* bonds z !   
,secret>y %all prescribe1 a produc] or  
export w>eh\se proprietor may transf]   
cannabis products1 )\t paym5t ( tax1 to 
! bond$ premises ( ano!r produc] or     
export w>eh\se proprietor1 or remove su*
 articles1 )\t paym5t ( tax1 = %ipm5t to
 a =eign c\ntry or a possession ( !     
,unit$ ,/ates1 or = consumption beyond !
 jurisdiction ( ! int]nal rev5ue laws ( 
! ,unit$ ,/ates4  7#b7 ,label+ ,cannabis
 products may n be transf]r$ or remov$  
"u ?is subsection unless su* products   
be> su* m>ks1 labels1 or notices z !    
,secret>y %all by regulations prescribe4
  7c7 ,cannabis products releas$ 9 bond 
f cu/oms cu/ody ,cannabis products      
import$ or br\ght into ! ,unit$ ,/ates  
may be releas$ f cu/oms cu/ody1 )\t     
paym5t ( tax1 = deliv]y to a produc] or 
export w>eh\se proprietor if su*        

articles are n put up 9 packages1 9     
accordance ) su* regulations & "u su*   
bond z ! ,secret>y %all prescribe4  7d7 
,cannabis products export$ & return$    
,cannabis products classifiable "u item 
#ihja4jj4aj ( ! ,h>moniz$ ,t>iff ,s*$ule
 ( ! ,unit$ ,/ates 7relat+ to duty on   
c]ta9 articles previ\sly export$ &      
return$71 z 9 effect on ! date ( !      
enactm5t ( ! ,m>ijuana ,opportunity     
,re9ve/m5t & ,expungem5t ,act ( #bjbj1  
may be releas$ f cu/oms cu/ody1 )\t     
paym5t ( t "p ( ! duty attributable to !
 int]nal rev5ue tax = deliv]y to !      
orig9al produc] ( su* cannabis products 
or to ! export w>eh\se proprietor       
au?oriz$ by su* produc] to receive su*  
products1 9 accordance ) su* regulations
 & "u su* bond z ! ,secret>y %all       
prescribe4 ,^u su* release su* products 
%all be subject to ?is *apt] z if !y _h 
n be5 export$ or o!rwise remov$ f       
int]nal rev5ue bond4  #eije4 ,cr$it1    
refund1 or drawback ( tax  7a7 ,cr$it or
 refund  7#a7 ,9 g5]al ,cr$it or refund 

( any tax impos$ by ?is *apt] or section
 #gfeb %all be all[$ or made 7)\t       
int]e/7 to ! cannabis ent]prise on pro( 
satisfactory to ! ,secret>y t ! claimant
 cannabis ent]prise has paid ! tax on-- 
7,a7 cannabis products )drawn f ! m>ket 
by ! claimant1 or  7,b7 su* products lo/
 7o!rwise ?an by !ft7 or de/roy$1 by    
fire1 casualty1 or act ( ,god1 :ile 9 ! 
possession or own]%ip ( ! claimant4     
7#b7 ,cannabis products lo/ or de/roy$ 9
 bond  7,a7 ,ext5t ( loss all[ance ,no  
tax %all be collect$ 9 respect (        
cannabis products lo/ or de/roy$ :ile 9 
bond1 except t su* tax %all be          
collect$-- 7i7 9 ! case ( loss by !ft1  
unless ! ,secret>y f9ds t ! !ft occurr$ 
)\t connivance1 collusion1 fraud1 or    
neglig5ce on ! "p ( ! proprietor ( !    
cannabis production facility1 own]1     
consignor1 consignee1 bailee1 or c>ri]1 
or _! employees or ag5ts1  7ii7 9 ! case
 ( volunt>y de/ruction1 unless su*      
de/ruction is c>ri$ out z provid$ 9     
p>agraph 7#c71 &  7iii7 9 ! case ( an   

unexpla9$ %ortage ( cannabis products4  
7,b7 ,pro( ( loss ,9 any case 9 :i*     
cannabis products are lo/ or de/roy$1   
:e!r by !ft or o!rwise1 ! ,secret>y may 
require ! proprietor ( a cannabis       
production facility or o!r p]son liable 
= ! tax to file a claim = relief f ! tax
 & submit pro( z to ! cause ( su* loss4 
,9 e case :]e x appe>s t ! loss 0 by    
!ft1 ! burd5 %all be ^u ! proprietor ( !
 cannabis production facility or o!r    
p]son responsible = ! tax "u section    
#eija to e/abli% to ! satisfaction ( !  
,secret>y t su* loss did n occur z !    
result ( connivance1 collusion1 fraud1  
or neglig5ce on ! "p ( ! proprietor ( ! 
cannabis production facility1 own]1     
consignor1 consignee1 bailee1 or c>ri]1 
or _! employees or ag5ts4  7,c7 ,refund 
( tax ,9 any case :]e ! tax w\ld n be   
collectible by virtue ( subp>agraph     
7,a71 b su* tax has be5 paid1 !         
,secret>y %all refund su* tax4  7,d7    
,limitations ,except z provid$ 9        
subp>agraph 7,e71 no tax %all be abat$1 

remitt$1 cr$it$1 or refund$ "u ?is      
p>agraph :]e ! loss occurr$ aft] ! tax 0
 det]m9$4 ,! abatem5t1 remission1 cr$it1
 or refund ( taxes provid$ = by         
subp>agraphs 7,a7 & 7,c7 9 ! case ( loss
 ( cannabis products by !ft %all only be
 all[$ to ! ext5t t ! claimant is n     
indemnifi$ aga9/ or recomp5s$ 9 respect 
( ! tax = su* loss4  7,e7 ,applicability
 ,! provisions ( ?is p>agraph %all ext5d
 to & apply 9 respect ( cannabis        
products lo/ aft] ! tax 0 det]m9$ & be=e
 completion ( ! physical removal ( !    
cannabis products f ! bond$ premises4   
7#c7 ,volunt>y de/ruction ,! proprietor 
( a cannabis production facility or o!r 
p]sons liable = ! tax impos$ by ?is     
*apt] or by section #gfeb ) respect to  
any cannabis product 9 bond may         
volunt>ily de/roy su* products1 b only  
if su* de/ruction is "u su* sup]vision &
 "u su* regulations z ! ,secret>y may   
prescribe4  7#d7 ,limitation ,any claim 
= cr$it or refund ( tax "u ?is          
subsection %all be fil$ )9 #f mon?s aft]

 ! date ( ! )drawal f ! m>ket1 loss1 or 
de/ruction ( ! products to :i* ! claim  
relates1 & %all be 9 su* =m & conta9 su*
 in=mation z ! ,secret>y %all by        
regulations prescribe4  7b7 ,drawback ( 
tax ,!re %all be an all[ance ( drawback 
( tax paid on cannabis products1 :5     
%ipp$ f ! ,unit$ ,/ates1 9 accordance ) 
su* regulations & ^u ! fil+ ( su* bond z
 ! ,secret>y %all prescribe4  ,b        
,occupational ,tax  ,sec4 #eiaa4        
,imposition & rate ( tax4 ,sec4 #eiab4  
,paym5t ( tax4 ,sec4 #eiac4 ,provisions 
relat+ to liability = occupational      
taxes4 ,sec4 #eiad4 ,application to     
,/ate laws4  #eiaa4 ,imposition & rate (
 tax  7a7 ,9 g5]al ,any p]son engag$ 9  
bus9ess z a produc] or an export w>eh\se
 proprietor %all pay a tax ( #a1jjj p]  
ye> 7ref]r$ to 9 ?is sub*apt] z an      
occupational tax7 9 respect ( ea*       
premises at :i* su* bus9ess is c>ri$ on4
  7b7 ,p5alty = failure ,to regi/] ,any 
p]son engag$ 9 bus9ess z a produc] or an
 export w>eh\se proprietor :o willfully 

fails to pay ! occupation tax %all be   
f9$ n m ?an #e1jjj1 or imprison$ n m ?an
 #b ye>s1 or bo?1 = ea* su* (f5se4      
#eiab4 ,paym5t ( tax  7a7 ,condition    
prec$5t to c>ry+ on bus9ess ,no p]son   
%all be engag$ 9 or c>ry on any trade or
 bus9ess subject to ! occupational tax  
until su* p]son has paid su* tax4  7b7  
,computation  7#a7 ,9 g5]al ,!          
occupational tax %all be impos$-- 7,a7 z
 ( on ! fir/ day ( ,july 9 ea* ye>1 or  
7,b7 on comm5c+ any trade or bus9ess on 
:i* su* tax is impos$4  7#b7 ,p]iod ,9 !
 case ( a tax impos$ "u subp>agraph 7,a7
 ( p>agraph 7#a71 ! occupational tax    
%all be reckon$ = #a ye>1 & 9 ! case (  
subp>agraph 7,b7 ( su* p>agraph1 x %all 
be reckon$ proportionately1 f ! fir/ day
 ( ! mon? 9 :i* ! liability to su* tax  
comm5c$1 to & includ+ ! #cj? day ( ,june
 foll[+4  7c7 ,me?od ( paym5t  7#a7     
,paym5t by return ,! occupational tax   
%all be paid on ! basis ( a return "u   
su* regulations z ! ,secret>y %all      
prescribe4  7#b7 ,/amp d5ot+ paym5t (   

tax ,aft] receiv+ a prop]ly execut$     
return & remittance ( any occupational  
tax1 ! ,secret>y %all issue to ! taxpay]
 an appropriate /amp z a receipt d5ot+  
paym5t ( ! tax4 ,?is p>agraph %all n    
apply 9 ! case ( a return cov]+         
liability = a pa/ p]iod4  #eiac4        
,provisions relat+ to liability =       
occupational taxes  7a7 ,p>tn]s ,any    
numb] ( p]sons do+ bus9ess 9 p>tn]%ip at
 any "o place %all be requir$ to pay a  
s+le occupational tax4  7b7 ,diff]5t    
bus9esses ( same own]%ip & location     
,:5ev] m ?an "o ( ! pursuits or         
occupations describ$ 9 ?is sub*apt] are 
c>ri$ on 9 ! same place by ! same p]son 
at ! same "t1 except z o!rwise provid$ 9
 ?is sub*apt]1 ! occupational tax %all  
be paid = ea* accord+ to ! rates        
sev]ally prescrib$4  7c7 ,bus9esses 9 m 
?an "o location  7#a7 ,liability = tax  
,! paym5t ( ! occupational tax %all n   
exempt f an additional occupational tax 
! p]son c>ry+ on a trade or bus9ess 9   
any o!r place ?an t /at$ 9 ! records ( !

 ,int]nal ,rev5ue ,s]vice4  7#b7 ,/orage
 ,no?+ conta9$ 9 p>agraph 7#a7 %all     
require imposition ( an occupational tax
 = ! /orage ( cannabis products at a    
location o!r ?an ! place :]e su*        
products are sold or (f]$ = sale4  7#c7 
,place  7,a7 ,9 g5]al ,= purposes ( ?is 
section1 ! t]m place means ! entire     
(fice1 plant or area ( ! bus9ess 9 any  
"o location "u ! same proprietor%ip4    
7,b7 ,divisions ,= purposes ( ?is       
p>agraph1 any passageways1 /reets1      
highways1 rail cross+s1 wat]ways1 or    
p>titions divid+ ! premises %all n be   
deem$ suffici5t sep>ation to require an 
additional occupational tax1 if ! v>i\s 
divisions are o!rwise contigu\s4  7d7   
,dea? or *ange ( location  7#a7 ,9 g5]al
 ,9 addition to ! p]son :o has paid !   
occupational tax = ! c>ry+ on ( any     
bus9ess at any place1 any p]son describ$
 9 p>agraph 7#b7 may secure ! "r to c>ry
 on1 )\t incurr+ any additional         
occupational tax1 ! same bus9ess at !   
same place = ! rema9d] ( ! taxable p]iod

 = :i* ! occupational tax 0 paid4  7#b7 
,eligible p]sons ,! p]sons describ$ 9   
?is p>agraph are ! foll[+3 7,a7 ,!      
surviv+ sp\se or *ild1 or executor or   
adm9i/rator or o!r legal repres5tative1 
( a deceas$ taxpay]4  7,b7 ,a husb& or  
wife succe$+ to ! bus9ess ( 8 or h] liv+
 sp\se4  7,c7 ,a receiv] or tru/ee 9    
bankruptcy1 or an assignee = b5efit (   
cr$itors4  7,d7 ,! p>tn] or p>tn]s      
rema9+ aft] dea? or )drawal ( a memb] ( 
a p>tn]%ip4  7#c7 ,*ange ( location ,:5 
any p]son moves to any place o!r ?an !  
place = :i* occupational tax 0 paid = ! 
c>ry+ on ( any bus9ess1 su* p]son may   
secure ! "r to c>ry on1 )\t incurr+     
additional occupational tax1 ! same     
bus9ess at ! new location = ! rema9d] ( 
! taxable p]iod = :i* ! occupational tax
 0 paid4 ,to secure ! "r to c>ry on !   
bus9ess )\t incurr+ additional          
occupational tax1 ! successor1 or !     
p]son relocat+ _! bus9ess1 mu/ regi/] ! 
succession or relocation ) ! ,secret>y 9
 accordance ) regulations prescrib$ by !

 ,secret>y4  7e7 ,f$]al ag5cies or      
in/rum5talities ,any tax impos$ by ?is  
sub*apt] %all apply to any ag5cy or     
in/rum5tality ( ! ,unit$ ,/ates unless  
su* ag5cy or in/rum5tality is grant$ by 
/atute a specific exemption f su* tax4  
#eiad4 ,application to ,/ate laws ,!    
paym5t ( any tax impos$ by ?is sub*apt] 
= c>ry+ on any trade or bus9ess %all n  
be held to-- 7#a7 exempt any p]son f any
 p5alty or puni%m5t provid$ by ! laws ( 
any ,/ate = c>ry+ on su* trade or       
bus9ess )9 su* ,/ate1 or 9 any mann] to 
au?orize ! comm5cem5t or cont9uance (   
su* trade or bus9ess contr>y to ! laws (
 su* ,/ate or 9 places prohibit$ by     
municipal law1 or  7#b7 prohibit any    
,/ate f plac+ a duty or tax on ! same   
trade or bus9ess1 = ,/ate or o!r        
purposes4  ,c ,bond & ,p]mits  ,sec4    
#eiba4 ,e/abli%m5t & bond4 ,sec4 #eibb4 
,application = p]mit4 ,sec4 #eibc4      
,p]mit4  #eiba4 ,e/abli%m5t & bond  7a7 
,prohibition on production outside (    
bond$ cannabis production facility  7#a7

 ,9 g5]al ,except z au?oriz$ by !       
,secret>y or on ! bond$ premises ( a    
cannabis production facility duly       
au?oriz$ to produce cannabis products   
accord+ to law1 no cannabis product may 
plant$1 cultivat$1 h>ve/$1 gr[n1        
manufactur$1 produc$1 comp\nd$1 conv]t$1
 process$1 prep>$1 or packag$ 9 any     
build+ or on any premises4  7#b7        
,au?oriz$ produc]s only ,no p]son o!r   
?an a produc] :i* has fil$ ! bond       
requir$ "u subsection 7b7 & receiv$ a   
p]mit describ$ 9 section #eibc may      
produce any cannabis product4  7#c7     
,p]sonal use exception ,?is subsection  
%all n apply ) respect ! activities ( an
 individual :o is n treat$ z a produc]  
by reason ( section #eijb7;b77#b77;,b74 
7b7 ,bond  7#a7 ,:5 requir$ ,e p]son1   
be=e comm5c+ bus9ess z a produc] or an  
export w>eh\se proprietor1 %all file su*
 bond1 condition$ ^u compliance ) ?is   
*apt] & regulations issu$ !reund]1 9 su*
 =m1 am\nt1 & mann] z ! ,secret>y %all  
by regulation prescribe4 ,a new or      

additional bond may be requir$ :5ev] !  
,secret>y consid]s su* action necess>y =
 ! protection ( ! rev5ue4  7#b7         
,approval or disapproval ,no p]son %all 
engage 9 su* bus9ess until he receives  
notice ( approval ( su* bond4 ,a bond   
may be disapprov$1 ^u notice to !       
pr9cipal on ! bond1 if ! ,secret>y      
det]m9es t ! bond is n adequate to      
protect ! rev5ue4  7#c7 ,cancellation   
,any bond fil$ h]eund] may be cancel$1  
^u notice to ! pr9cipal on ! bond1 :5ev]
 ! ,secret>y det]m9es t ! bond no long] 
adequately protects ! rev5ue4  #eibb4   
,application = p]mit  7a7 ,9 g5]al ,e   
p]son1 be=e comm5c+ bus9ess z a cannabis
 ent]prise1 & at su* o!r "t z !         
,secret>y %all by regulation prescribe1 
%all make application = ! p]mit provid$ 
= 9 section #eibc4 ,! application %all  
be 9 su* =m z ! ,secret>y %all prescribe
 & %all set =?1 tru?fully & accurately1 
! in=mation call$ = on ! =m4 ,su*       
application may be reject$ & ! p]mit    
d5i$ if ! ,secret>y1 aft] notice &      

opportunity = he>+1 f9ds t-- 7#a7 !     
premises on :i* x is propos$ to conduct 
! cannabis ent]prise are n adequate to  
protect ! rev5ue1 or  7#b7 su* p]son    
7includ+1 9 ! case ( a corporation1 any 
(fic]1 director1 or pr9cipal /ockhold]  
&1 9 ! case ( a p>tn]%ip1 a p>tn]7--    
7,a7 is1 by reason ( _! bus9ess         
exp]i5ce1 f9ancial /&+1 or trade        
connections or by reason ( previ\s or   
curr5t legal proce$+s involv+ a felony  
violation ( any o!r provision ( ,f$]al  
or ,/ate crim9al law relat+ to cannabis 
or cannabis products1 n likely to ma9ta9
 op]ations 9 compliance ) ?is *apt]1 or 
7,b7 has fail$ to disclose any mat]ial  
in=mation requir$ or made any mat]ial   
false /atem5t 9 ! application !re=4     
#eibc4 ,p]mit  7a7 ,issuance ,a p]son   
%all n engage 9 bus9ess z a cannabis    
ent]prise )\t a p]mit to engage 9 su*   
bus9ess4 ,su* p]mit1 condition$ ^u      
compliance ) ?is *apt] & regulations    
issu$ !reund]1 %all be issu$ 9 su* =m & 
9 su* mann] z ! ,secret>y %all by       

regulation prescribe4 ,a new p]mit may  
be requir$ at su* o!r "t z ! ,secret>y  
%all by regulation prescribe4  7b7      
,susp5sion or ,revocation  7#a7 ,%[     
cause he>+ ,if ! ,secret>y has reason to
 believe t any p]son hold+ a p]mit--    
7,a7 has n 9 good fai? compli$ ) ?is    
*apt]1 or ) any o!r provision ( ?is     
title involv+ int5t to defraud1  7,b7   
has violat$ ! conditions ( su* p]mit1   
7,c7 has fail$ to disclose any mat]ial  
in=mation requir$ or made any mat]ial   
false /atem5t 9 ! application = su*     
p]mit1  7,d7 has fail$ to ma9ta9 _!     
premises 9 su* mann] z to protect !     
rev5ue1 or  7,e7 is1 by reason ( previ\s
 or curr5t legal proce$+s involv+ a     
felony violation ( any o!r provision (  
,f$]al or ,/ate crim9al law relat+ to   
cannabis1 n likely to ma9ta9 op]ations 9
 compliance ) ?is *apt]1  ! ,secret>y   
%all issue an ord]1 /at+ ! facts *>g$1  
cit+ su* p]son to %[ cause :y _! p]mit  
%\ld n be susp5d$ or revok$4  7#b7      
,action foll[+ he>+ ,if1 aft] he>+1 !   

,secret>y f9ds t su* p]son has n %[n    
cause :y _! p]mit %\ld n be susp5d$ or  
revok$1 su* p]mit %all be susp5d$ = su* 
p]iod z ! ,secret>y deems prop] or %all 
be revok$4  7c7 ,in=mation report+ ,!   
,secret>y may require-- 7#a7 in=mation  
report+ by any p]son issu$ a p]mit "u   
?is section1 &  7#b7 in=mation report+  
by su* o!r p]sons z ! ,secret>y deems   
necess>y to c>ry out ?is *apt]4  7d7    
,inspection or disclosure ( in=mation ,=
 rules relat+ to inspection & disclosure
 ( returns & return in=mation1 see      
section #fajc7o74  ,d ,op]ations  ,sec4 
#eica4 ,inv5tories1 reports1 & records4 
,sec4 #eicb4 ,packag+ & label+4 ,sec4   
#eicc4 ,pur*ase1 receipt1 possession1 or
 sale ( cannabis products aft] removal4 
,sec4 #eicd4 ,re/rictions relat+ to     
m>ks1 labels1 notices1 & packages4 ,sec4
 #eice4 ,re/riction on importation (    
previ\sly export$ cannabis products4    
#eica4 ,inv5tories1 reports1 & records  
,e cannabis ent]prise %all-- 7#a7 make a
 true & accurate inv5tory at ! "t (     

comm5c+ bus9ess1 at ! "t ( conclud+     
bus9ess1 & at su* o!r times1 9 su* mann]
 & =m1 & to include su* items1 z !      
,secret>y %all by regulation prescribe1 
) su* inv5tories to be subject to       
v]ification by any int]nal rev5ue (fic]1
  7#b7 make reports conta9+ su*         
in=mation1 9 su* =m1 at su* times1 & =  
su* p]iods z ! ,secret>y %all by        
regulation prescribe1 &  7#c7 keep su*  
records 9 su* mann] z ! ,secret>y %all  
by regulation prescribe1 ) su* records  
to be available = inspection by any     
int]nal rev5ue (fic] dur+ bus9ess h\rs4 
#eicb4 ,packag+ & label+  7a7 ,packages 
,all cannabis products %all1 be=e       
removal1 be put up 9 su* packages z !   
,secret>y %all by regulation prescribe4 
7b7 ,m>ks1 labels1 & notices ,e package 
( cannabis products %all1 be=e removal1 
be> ! m>ks1 labels1 & notices if any1 t 
! ,secret>y by regulation prescribes4   
7c7 ,lott]y features ,no c]tificate1    
c\pon1 or o!r device purport+ to be or  
to repres5t a ticket1 *ance1 %>e1 or an 

int]e/ 91 or dep5d5t on1 ! ev5t ( a     
lott]y %all be conta9$ 91 atta*$ to1 or 
/amp$1 m>k$1 writt51 or pr9t$ on any    
package ( cannabis products4  7d7       
,indec5t or immoral mat]ial prohibit$   
,no indec5t or immoral picture1 pr9t1 or
 repres5tation %all be conta9$ 91 atta*$
 to1 or /amp$1 m>k$1 writt51 or pr9t$ on
 any package ( cannabis products4  7e7  
,exceptions ,subject to regulations     
prescrib$ by ! ,secret>y1 cannabis      
products may be exempt$ f subsections   
7a7 & 7b7 if su* products are-- 7#a7 =  
exp]im5tal purposes1 or  7#b7 transf]r$ 
to ! bond$ premises ( ano!r produc] or  
export w>eh\se proprietor or releas$ 9  
bond f cu/oms cu/ody = deliv]y to a     
produc]4  #eicc4 ,pur*ase1 receipt1     
possession1 or sale ( cannabis products 
aft] removal  7a7 ,re/riction ,no p]son 
%all-- 7#a7 ) int5t to defraud ! ,unit$ 
,/ates1 pur*ase1 receive1 possess1 (f] =
 sale1 or sell or o!rwise dispose (1    
aft] removal1 any cannabis products--   
7,a7 ^u :i* ! tax has n be5 paid or     

det]m9$ 9 ! mann] & at ! "t prescrib$ by
 ?is *apt] or regulations !reund]1 or   
7,b7 :i*1 aft] removal )\t paym5t ( tax 
pursuant to section #eijd7;a71 h be5    
div]t$ f ! applicable purpose or use    
specifi$ 9 t section1  7#b7 ) int5t to  
defraud ! ,unit$ ,/ates1 pur*ase1       
receive1 possess1 (f] = sale1 or sell or
 o!rwise dispose (1 aft] removal1 any   
cannabis products :i* are n put up 9    
packages z requir$ "u section #eicb or  
:i* are put up 9 packages n be>+ ! m>ks1
 labels1 & notices1 z requir$ "u su*    
section1 or  7#c7 o!rwise ?an ) int5t to
 defraud ! ,unit$ ,/ates1 pur*ase1      
receive1 possess1 (f] = sale1 or sell or
 o!rwise dispose (1 aft] removal1 any   
cannabis products :i* are n put up 9    
packages z requir$ "u section #eicb or  
:i* are put up 9 packages n be>+ ! m>ks1
 labels1 & notices1 z requir$ "u su*    
section4  7b7 ,exception ,p>agraph 7#c7 
( subsection 7a7 %all n prev5t ! sale or
 deliv]y ( cannabis products directly to
 consum]s f prop] packages1 nor apply to

 su* articles :5 s sold or deliv]$4  7c7
 ,liability to tax ,any p]son :o        
possesses cannabis products 9 violation 
( p>agraph 7#a7 or 7#b7 ( subsection 7a7
 %all be liable = a tax equal to ! tax  
on su* articles4  #eicd4 ,re/rictions   
relat+ to m>ks1 labels1 notices1 &      
packages ,no p]son %all1 ) int5t to     
defraud ! ,unit$ ,/ates1 de/roy1        
oblit]ate1 or deta* any m>k1 label1 or  
notice prescrib$ or au?oriz$1 by ?is    
*apt] or regulations !reund]1 to appe>  
on1 or be affix$ to1 any package (      
cannabis products be=e su* package is   
empti$4  #eice4 ,re/riction on          
importation ( previ\sly export$ cannabis
 products  7a7 ,export label$ cannabis  
products  7#a7 ,9 g5]al ,cannabis       
products produc$ 9 ! ,unit$ ,/ates &    
label$ = exportation "u ?is *apt]-- 7,a7
 may be transf]r$ to or remov$ f !      
premises ( a produc] or an export       
w>eh\se proprietor only if su* articles 
are be+ transf]r$ or remov$ )\t tax 9   
accordance ) section #eijd1  7,b7 may be

 import$ or br\ght into ! ,unit$ ,/ates1
 aft] _! exportation1 only if su*       
articles ei!r are eligible to be releas$
 f cu/oms cu/ody ) ! p>tial duty        
exemption provid$ 9 section #eijd7;d7 or
 are return$ to ! orig9al produc] ( su* 
article z provid$ 9 section #eijd7;c71 &
  7,c7 may n be sold or held = sale =   
dome/ic consumption 9 ! ,unit$ ,/ates   
unless su* articles are remov$ f _!     
export packag+ & repackag$ by ! orig9al 
produc] into new packag+ t does n conta9
 an export label4  7#b7 ,alt]ations by  
p]sons o!r ?an orig9al produc] ,?is     
section %all apply to articles label$ = 
export ev5 if ! packag+ or ! appe>ance (
 su* packag+ to ! consum] ( su* articles
 has be5 modifi$ or alt]$ by a p]son o!r
 ?an ! orig9al produc] s z to remove or 
conceal or attempt to remove or conceal 
7includ+ by ! placem5t ( a /ick] ov]7   
any export label4  7#c7 ,exports include
 %ipm5ts to ,pu]to ,rico ,= purposes (  
?is section1 section #eijd7;d71 section 
#eida1 & su* o!r provisions z !         

,secret>y may specify by regulations1   
ref]5ces to exportation %all be treat$ z
 includ+ a ref]5ce to %ipm5t to !       
,commonweal? ( ,pu]to ,rico4  7b7       
,export label ,= purposes ( ?is section1
 an article is label$ = export or       
conta9s an export label if x be>s ! m>k1
 label1 or notice requir$ "u section    
#eijd7;b74  ,e ,p5alties  ,sec4 #eida4  
,civil p5alties4 ,sec4 #eidb4 ,crim9al  
p5alties4  #eida4 ,civil p5alties  7a7  
,omitt+ ,?+s ,requir$ or ,do+ ,?+s      
,=bidd5 ,:oev] willfully omits1         
neglects1 or refuses to comply ) any    
duty impos$ ^u !m by ?is *apt]1 or to d1
 or cause to be done1 any ( ! ?+s       
requir$ by ?is *apt]1 or does any?+     
prohibit$ by ?is *apt]1 %all 9 addition 
to any o!r p5alty provid$ 9 ?is title1  
be liable to a p5alty ( #aj1jjj1 to be  
recov]$1 ) co/s ( suit1 9 a civil       
action1 except :]e a p5alty "u          
subsection 7b7 or 7c7 or "u section     
#ffea or #ffec or "p ,,ii ( sub*apt] ,a 
( *apt] #fh may be collect$ f su* p]son 

by assessm5t4  7b7 ,failure ,to ,pay    
,tax ,:oev] fails to pay any tax impos$ 
by ?is *apt] at ! "t prescrib$ by law or
 regulations1 %all1 9 addition to any   
o!r p5alty provid$ 9 ?is title1 be      
liable to a p5alty ( #aj p]c5t ( ! tax  
due b unpaid4  7c7 ,sale ( cannabis or  
cannabis ,products = ,export  7#a7 ,e   
p]son :o sells1 rel&s1 or receives )9 ! 
jurisdiction ( ! ,unit$ ,/ates any      
cannabis products :i* h be5 label$ or   
%ipp$ = exportation "u ?is *apt]1  7#b7 
e p]son :o sells or receives su* rel&$  
cannabis products1 &  7#c7 e p]son :o   
aids or abets 9 su* sell+1 rel&+1 or    
receiv+1  %all1 9 addition to ! tax &   
any o!r p5alty provid$ 9 ?is title1 be  
liable = a p5alty equal to ! great] (   
#aj1jjj or #aj times ! am\nt ( ! tax    
impos$ by ?is *apt]4 ,all cannabis      
products rel&$ )9 ! jurisdiction ( !    
,unit$ ,/ates %all be =feit$ to ! ,unit$
 ,/ates & de/roy$4 ,all vessels1        
vehicles1 & aircraft us$ 9 su* rel&+ or 
9 remov+ su* cannabis products f ! place

 :]e rel&$1 %all be =feit$ to ! ,unit$  
,/ates4  7d7 ,applicability ( ,section  
#fffe ,! p5alties impos$ by subsections 
7b7 & 7c7 %all be assess$1 collect$1 &  
paid 9 ! same mann] z taxes1 z provid$ 9
 section #fffe7;a74  7e7 ,cross         
,ref]5ces ,= p5alty = failure to make   
deposits or = ov]/atem5t ( deposits1 see
 section #ffef4  #eidb4 ,crim9al        
p5alties  7a7 ,fraudul5t ,(f5ses ,:oev]1
 ) int5t to defraud ! ,unit$ ,/ates--   
7#a7 engages 9 bus9ess z a cannabis     
ent]prise )\t fil+ ! application &      
obta9+ ! p]mit :]e requir$ by ?is *apt] 
or regulations !reund]1  7#b7 fails to  
keep or make any record1 return1 report1
 or inv5tory1 or keeps or makes any     
false or fraudul5t record1 return1      
report1 or inv5tory1 requir$ by ?is     
*apt] or regulations !reund]1  7#c7     
refuses to pay any tax impos$ by ?is    
*apt]1 or attempts 9 any mann] to evade 
or defeat ! tax or ! paym5t !re(1  7#d7 
sells or o!rwise transf]s1 contr>y to   
?is *apt] or regulations !reund]1 any   

cannabis products subject to tax "u ?is 
*apt]1 or  7#e7 pur*ases1 receives1 or  
possesses1 ) int5t to r$i/ribute or     
resell1 any cannabis product-- 7,a7 ^u  
:i* ! tax has n be5 paid or det]m9$ 9 ! 
mann] & at ! "t prescrib$ by ?is *apt]  
or regulations !reund]1 or  7,b7 :i*1   
)\t paym5t ( tax pursuant to section    
#eijd1 h be5 div]t$ f ! applicable      
purpose or use specifi$ 9 t section1    
%all1 = ea* su* (f5se1 be f9$ n m ?an   
#aj1jjj1 or imprison$ n m ?an #e ye>s1  
or bo?4  7b7 ,liability to tax ,any     
p]son :o possesses cannabis products 9  
violation ( subsection 7a7 %all be      
liable = a tax equal to ! tax on su*    
articles4  4  7c7 ,/udy ,n lat] ?an #b  
ye>s aft] ! date ( ! enactm5t ( ?is     
,act1 & e #e ye>s !reaft]1 ! ,secret>y (
 ! ,treasury1 or ! ,secret>y's delegate1
 %all-- 7#a7 conduct a /udy conc]n+ !   
*>act]i/ics ( ! cannabis indu/ry1       
includ+ ! numb] ( p]sons op]at+ cannabis
 ent]prises at ea* level ( su* indu/ry1 
! volume ( sales1 ! am\nt ( tax collect$

 ea* ye>1 & ! areas ( evasion1 &  7#b7  
submit to ,congress recomm5dations to   
improve ! regulation ( ! indu/ry & !    
adm9i/ration ( ! relat$ tax4  7d7       
,annual reports reg>d+ det]m9ation (    
applicable rates ,n lat] ?an #f mon?s   
be=e ! beg9n+ ( ea* cal5d> ye> to :i*   
section #eija7;a77#b7 ( ! ,int]nal      
,rev5ue ,code ( #aihf 7z add$ by ?is    
section7 applies1 ! ,secret>y ( !       
,treasury1 or ! ,secret>y's delegate1   
%all make publicly available a detail$  
description ( ! me?odology :i* !        
,secret>y anticipates us+ to det]m9e !  
applicable rate p] ounce & ! applicable 
rate p] gram :i* w apply = su* cal5d>   
ye> "u section #eija7;c77#b7 ( su*      
,code4  7e7 ,con=m+ am5dm5ts  7#a7      
,section #fajc7o77#a77;,a7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
& fire>ms & ins]t+ fire>ms1 & cannabis  
products4  7#b7 ,! table ( *apt]s =     
subtitle ,e ( su* ,code is am5d$ by add+
 at ! end ! foll[+ new item3  ,*apt]    
#ef4 ,cannabis ,products  4  7#c7 ,!    

table ( sections = sub*apt] ,a ( *apt]  
#ih ( su* ,code is am5d$ by add+ at !   
end ! foll[+ new item3  ,sec4 #ieab4    
,opportunity ,tru/ ,tund4  4  7f7       
,effective date  7#a7 ,9 g5]al ,except z
 o!rwise provid$ 9 ?is subsection1 !    
am5dm5ts made by ?is section %all apply 
to removals1 & applications = p]mits "u 
section #eibb ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7z add$ by subsection 7b771    
aft] #ahj days aft] ! date ( ! enactm5t 
( ?is ,act4  7#b7 ,e/abli%m5t ( tru/    
fund ,! am5dm5t made by subsection 7a7  
%all take effect on ! date ( ! enactm5t 
( ?is ,act4  #f4 ,opportunity tru/ fund 
programs  7a7 ,cannabis ju/ice (fice2   
community re9ve/m5t grant program  7#a7 
,cannabis ju/ice (fice ,"p ,a ( title ,i
 ( ! ,omnibus ,crime ,control & ,safe   
,/reets ,act ( #aifh 7#cd ,u4,s4,c4     
#ajaja et seq47 is am5d$ by ins]t+ aft] 
section #aji ! foll[+3  #aaj4 ,cannabis 
ju/ice (fice  7a7 ,e/abli%m5t ,!re is   
e/abli%$ )9 ! ,(fice ( ,ju/ice ,programs
 a ,cannabis ,ju/ice ,(fice4  7b7       

,director ,! ,cannabis ,ju/ice ,(fice   
%all be head$ by a ,director :o %all be 
appo9t$ by ! ,assi/ant ,attorney ,g5]al 
= ! ,(fice ( ,ju/ice ,programs4 ,!      
,director %all report to ! ,assi/ant    
,attorney ,g5]al = ! ,(fice ( ,ju/ice   
,programs4 ,! ,director %all aw>d grants
 & may ent] into compacts1 coop]ative   
agreem5ts1 & contracts on behalf ( !    
,cannabis ,ju/ice ,(fice4 ,! ,director  
may n engage 9 any employm5t o!r ?an t (
 s]v+ z ! ,director1 nor may ! ,director
 hold any (fice 91 or act 9 any capacity
 =1 any organization1 ag5cy1 or         
in/itution ) :i* ! ,(fice makes any     
contract or o!r arrangem5t4  7c7        
,employees  7#a7 ,9 g5]al ,! ,director  
%all employ z _m full-"t employees z are
 ne$$ to c>ry out ! duties & functions (
 ! ,cannabis ,ju/ice ,(fice "u          
subsection 7d74 ,su* employees %all be  
exclusively assign$ to ! ,cannabis      
,ju/ice ,(fice4  7#b7 ,initial hires ,n 
lat] ?an #f mon?s aft] ! date ( enactm5t
 ( ?is section1 ! ,director %all-- 7,a7 

hire no less ?an "o-?ird ( ! total numb]
 ( employees ( ! ,cannabis ,ju/ice      
,(fice2 &  7,b7 no m ?an "o-half ( !    
employees assign$ to ! ,cannabis ,ju/ice
 ,(fice by t]m appo9tm5t t may aft] #b  
ye>s be conv]t$ to c>e] appo9tm5t4  7#c7
 ,legal c\nsel ,at lea/ "o employee hir$
 = ! ,cannabis ,ju/ice ,(fice %all s]ve 
z legal c\nsel to ! ,director & %all    
provide c\nsel to ! ,cannabis ,ju/ice   
,(fice4  7d7 ,duties & functions ,!     
,cannabis ,ju/ice ,(fice is au?oriz$    
to-- 7#a7 adm9i/] ! ,community          
,re9ve/m5t ,grant ,program2 &  7#b7 p]=m
 su* o!r functions z ! ,assi/ant        
,attorney ,g5]al = ! ,(fice ( ,ju/ice   
,programs may delegate1 t are consi/5t )
 ! /atutory obligations ( ?is section4  
4  7#b7 ,community re9ve/m5t grant      
program ,title ,i ( ! ,omnibus ,crime   
,control & ,safe ,/reets ,act ( #aifh   
7#cd ,u4,s4,c4 et seq47 is am5d$ by add+
 at ! end ! foll[+3  ,,oo ,,community   
,,re9ve/m5t ,,grant ,,program  #cjeb4   
,au?orization  7a7 ,9 g5]al ,! ,director

 ( ! ,cannabis ,ju/ice ,(fice %all      
e/abli% & c>ry out a grant program1 kn[n
 z ! ,community ,re9ve/m5t ,grant       
,program1 to provide eligible entities )
 funds to adm9i/] s]vices = individuals 
adv]sely impact$ by ! ,w> on ,drugs1    
includ+-- 7#a7 job tra9+2  7#b7 re5try  
s]vices2  7#c7 legal aid = civil &      
crim9al cases1 includ+ expungem5t (     
cannabis convictions2  7#d7 lit]acy     
programs2  7#e7 y\? recreation or m5tor+
 programs2 &  7#f7 heal? education      
programs4  7b7 ,sub/ance use disord]    
s]vices ,! ,director1 9 consultation ) !
 ,secret>y ( ,heal? & ,human ,s]vices1  
%all provide eligible entities ) funds  
to adm9i/] sub/ance use disord] s]vices 
= individuals adv]sely impact$ by ! ,w> 
on ,drugs or connect pati5ts ) sub/ance 
use disord] s]vices4 ,also eligible =   
su* s]vices are individuals :o h be5    
arre/$ = or convict$ ( ! sale1          
possession1 use1 manufacture1 or        
cultivation ( a controll$ sub/ance o!r  
?an cannabis 7except = a conviction     

involv+ di/ribution to a m9or74  #cjec4 
,fund+ f opportunity tru/ fund ,!       
,director %all c>ry out ! program "u ?is
 "p us+ funds made available "u section 
#ieab7;c77#a7 & 7#b7 ( ! ,int]nal       
,rev5ue ,code4  #cjed4 ,def9itions ,9   
?is "p3 7#a7 ,! t]m cannabis conviction 
means a conviction1 or adjudication (   
juv5ile del9qu5cy1 = a cannabis (f5se 7z
 su* t]m is def9$ 9 section #ac ( !     
,m>ijuana ,opportunity ,re9ve/m5t &     
,expungem5t ,act ( #bjbj74  7#b7 ,! t]m 
eligible entity means a nonpr(it        
organization1 z def9$ 9 section         
#eja7;c77#c7 ( ! ,int]nal ,rev5ue ,code1
 t is repres5tative ( a community or a  
significant segm5t ( a community )      
exp]i5ce 9 provid+ relevant s]vices to  
individuals adv]sely impact$ by ! ,w> on
 ,drugs 9 t community4  7#c7 ,! t]m     
individuals adv]sely impact$ by ! ,w> on
 ,drugs has ! mean+ giv5 t t]m 9 section
 #f ( ! ,m>ijuana ,opportunity          
,re9ve/m5t & ,expungem5t ,act ( #bjbj   
404  7b7 ,cannabis opportunity program2 

equitable lic5s+ grant program  7#a7    
,cannabis opportunity program ,!        
,adm9i/rator ( ! ,small ,bus9ess        
,adm9i/ration %all e/abli% & c>ry out a 
program1 to be kn[n z ! ,cannabis       
,opportunity ,program to provide any    
eligible ,/ate or locality funds to make
 loans "u section #g7m7 ( ! ,small      
,bus9ess ,act 7#ae ,u4,s4,c4 #cfc7m77 to
 assi/ small bus9ess conc]ns own$ &     
controll$ by socially & economically    
disadvantag$ individuals1 z def9$ 9     
section #h7;d77#c77;,c7 ( ! ,small      
,bus9ess ,act 7#ae ,u4,s4,c4            
#fcg7;d77#c77;,c77 t op]ate 9 ! cannabis
 indu/ry4  7#b7 ,equitable lic5s+ grant 
program ,! ,adm9i/rator ( ! ,small      
,bus9ess ,adm9i/ration %all e/abli% &   
c>ry out a grant program1 to be kn[n z !
 ,equitable ,lic5s+ ,grant ,program1 to 
provide any eligible ,/ate or locality  
funds to develop & implem5t equitable   
cannabis lic5s+ programs t m9imize      
b>ri]s to cannabis lic5s+ & employm5t = 
individuals adv]sely impact$ by ! ,w> on

 ,drugs1 provid$ t ea* grantee includes 
9 its cannabis lic5s+ program at lea/   
f\r ( ! foll[+3 7,a7 ,a waiv] ( cannabis
 lic5se application fees = individuals  
:o h _h an income bel[ #bej p]c5t ( !   
,f$]al ,pov]ty ,level = at lea/ #e ( !  
pa/ #aj ye>s :o are fir/-"t applicants4 
7,b7 ,a prohibition on ! d5ial ( a      
cannabis lic5se bas$ on a conviction = a
 cannabis (f5se t took place prior to   
,/ate legalization ( cannabis or ! date 
( enactm5t ( ?is ,act1 z appropriate4   
7,c7 ,a prohibition on crim9al          
conviction re/rictions = lic5s+ except )
 respect to a conviction relat$ to own+ 
& op]at+ a bus9ess4  7,d7 ,a prohibition
 on cannabis lic5se hold]s engag+ 9     
suspicionless cannabis drug te/+ ( _!   
prospective or curr5t employees1 except 
) respect to drug te/+ = safety-s5sitive
 positions "u "p #dj ( title #di1 ,code 
( ,f$]al ,regulations4  7,e7 ,!         
e/abli%m5t ( a cannabis lic5s+ bo>d t is
 reflective ( ! racial1 e?nic1 economic1
 & g5d] composition ( ! ,/ate or        

locality1 to s]ve z an ov]sight body ( !
 equitable lic5s+ program4  7#c7        
,def9itions ,9 ?is subsection3 7,a7 ,!  
t]m individual adv]sely impact$ by ! ,w>
 on ,drugs means an individual-- 7i7 :o 
has _h an income bel[ #bej p]c5t ( !    
,f$]al ,pov]ty ,level = at lea/ #e ( !  
pa/ #aj ye>s2 &  7ii7 has be5 arre/$ =  
or convict$ ( ! sale1 possession1 use1  
manufacture1 or cultivation ( cannabis  
7except = a conviction involv+          
di/ribution to a m9or71 or ^: p>5t1     
sibl+1 sp\se1 or *ild has be5 arre/$ =  
or convict$ ( su* an (f5se4  7,b7 ,! t]m
 eligible ,/ate or locality means a     
,/ate or locality t has tak5 /eps to--  
7i7 create an automatic process1 at no  
co/ to ! individual1 = ! expungem5t1    
de/ruction1 or seal+ ( crim9al records =
 cannabis (f5ses2 &  7ii7 elim9ate      
violations or o!r p5alties = p]sons "u  
p>ole1 probation1 pre-trial1 or o!r     
,/ate or local crim9al sup]vision = a   
cannabis (f5se4  7,c7 ,! t]m ,/ate means
 ea* ( ! sev]al ,/ates1 ! ,di/rict (    

,columbia1 ,pu]to ,rico1 any t]ritory or
 possession ( ! ,unit$ ,/ates1 & any    
,indian ,tribe 7z def9$ 9 section #bja (
 ,public ,law #ij-bid 7#be ,u4,s4,c4    
#acja7 7commonly kn[n z ! ,indian ,civil
 ,rights ,act ( #aifh774  #g4           
,availability ( small bus9ess           
adm9i/ration programs & s]vices to      
cannabis-relat$ legitimate bus9esses &  
s]vice provid]s  7a7 ,def9itions relat+ 
to cannabis-relat$ legitimate bus9esses 
& s]vice provid]s ,section #c ( ! ,small
 ,bus9ess ,act 7#ae ,u4,s4,c4 #fcb7 is  
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7ff7 ,cannabis-relat$      
legitimate bus9esses & s]vice provid]s  
,9 ?is ,act3 7#a7 ,cannabis ,! t]m      
cannabis-- 7,a7 means all p>ts ( ! plant
 ,cannabis sativa ,l41 :e!r gr[+ or n2 !
 se$s !re(2 ! res9 extract$ f any "p (  
su* plant2 & e comp\nd1 manufacture1    
salt1 d]ivative1 mixture1 or prep>ation 
( su* plant1 its se$s or res92 &  7,b7  
does n include-- 7i7 hemp1 z def9$ 9    
section #big;,a ( ! ,agricultural       

,m>ket+ ,act ( #aidf2  7ii7 ! mature    
/alks ( su* plant1 fib] produc$ f su*   
/alks1 oil or cake made f ! se$s ( su*  
plant1 any o!r comp\nd1 manufacture1    
salt1 d]ivative1 mixture1 or prep>ation 
( su* mature /alks 7except ! res9       
extract$ !refrom71 fib]1 oil1 or cake1  
or ! /]iliz$ se$ ( su* plant :i* is     
incapable ( g]m9ation2 or  7iii7 any    
drug product approv$ "u section #eje ( !
 ,f$]al ,food1 ,drug1 & ,cosmetic ,act1 
or biological product lic5s$ "u section 
#cea ( ! ,public ,heal? ,s]vice ,act4   
7#b7 ,cannabis-relat$ legitimate bus9ess
 ,! t]m cannabis-relat$ legitimate      
bus9ess means a manufactur]1 produc]1 or
 any p]son or company t is a small      
bus9ess conc]n & t-- 7,a7 engages 9 any 
activity describ$ 9 subp>agraph 7,b7    
pursuant to a law e/abli%$ by a ,/ate or
 a political subdivision ( a ,/ate1 z   
det]m9$ by su* ,/ate or political       
sub-division2 &  7,b7 p>ticipates 9 any 
bus9ess or organiz$ activity t involves 
h&l+ cannabis or cannabis products1     

includ+ cultivat+1 produc+1 manufactur+1
 sell+1 transport+1 display+1 disp5s+1  
di/ribut+1 or pur*as+ cannabis or       
cannabis products4  7#c7 ,s]vice provid]
 ,! t]m s]vice provid]-- 7,a7 means a   
bus9ess1 organization1 or o!r p]son t-- 
7i7 sells goods or s]vices to a         
cannabis-relat$ legitimate bus9ess2 or  
7ii7 provides any bus9ess s]vices1      
includ+ ! sale or lease ( real or any   
o!r prop]ty1 legal or o!r lic5s$        
s]vices1 or any o!r ancill>y s]vice1    
relat+ to cannabis2 &  7,b7 does n      
include a bus9ess1 organization1 or o!r 
p]son t p>ticipates 9 any bus9ess or    
organiz$ activity t involves h&l+       
cannabis or cannabis products1 includ+  
cultivat+1 produc+1 manufactur+1 sell+1 
transport+1 display+1 disp5s+1          
di/ribut+1 or pur*as+ cannabis or       
cannabis products4  4  7b7 ,small       
bus9ess developm5t c5t]s ,section       
#ba7;c7 ( ! ,small ,bus9ess ,act 7#ae   
,u4,s4,c4 #fdh7;c77 is am5d$ by add+ at 
! end ! foll[+ new p>agraph3  7#i7      

,s]vices = cannabis-relat$ legitimate   
bus9esses & s]vice provid]s ,a small    
bus9ess developm5t c5t] may n decl9e to 
provide s]vices to an o!rwise eligible  
small bus9ess conc]n "u ?is section     
solely because su* conc]n is a          
cannabis-relat$ legitimate bus9ess or   
s]vice provid]4  4  7c7 ,wom5's bus9ess 
c5t]s ,section #bi ( ! ,small ,bus9ess  
,act 7#ae ,u4,s4,c4 #fef7 is am5d$ by   
add+ at ! end ! foll[+ new subsection3  
7p7 ,s]vices = cannabis-relat$          
legitimate bus9esses & s]vice provid]s  
,a wom5's bus9ess c5t] may n decl9e to  
provide s]vices to an o!rwise eligible  
small bus9ess conc]n "u ?is section     
solely because su* conc]n is a          
cannabis-relat$ legitimate bus9ess or   
s]vice provid]4  4  7d7 ,score ,section 
#h7;b77#a77;,b7 ( ! ,small ,bus9ess ,act
 7#ae ,u4,s4,c4 #fcg7;b77#a77;,b77 is   
am5d$ by add+ at ! end ! foll[+ new     
s5t5ce3 ,! head ( ! ,,score program     
e/abli%$ "u ?is subp>agraph may n decl9e
 to provide s]vices to an o!rwise       

eligible small bus9ess conc]n solely    
because su* conc]n is a cannabis-relat$ 
legitimate bus9ess or s]vice provid]44  
7e7 ,vet]an bus9ess outrea* c5t]s       
,section #cb ( ! ,small ,bus9ess ,act   
7#ae ,u4,s4,c4 #feg;b7 is am5d$ by add+ 
at ! end ! foll[+ new subsection3  7h7  
,s]vices = cannabis-relat$ legitimate   
bus9esses & s]vice provid]s ,a ,vet]an  
,bus9ess ,outrea* ,c5t] may n decl9e to 
provide s]vices to an o!rwise eligible  
small bus9ess conc]n "u ?is section     
solely because su* conc]n is a          
cannabis-relat$ legitimate bus9ess or   
s]vice provid]4  4  7f7 #g7;a7 loans    
,section #g7;a7 ( ! ,small ,bus9ess ,act
 7#ae ,u4,s4,c4 #fcf7;a77 is am5d$ by   
add+ at ! end ! foll[+ new p>agraph3    
7#cg7 ,loans to cannabis-relat$         
legitimate bus9esses & s]vice provid]s  
,! ,adm9i/rator may n decl9e to provide 
a gu>antee = a loan "u ?is subsection to
 an o!rwise eligible small bus9ess      
conc]n solely because su* conc]n is a   
cannabis-relat$ legitimate bus9ess or   

s]vice provid]4  4  7g7 ,disa/] loans   
,section #g7;b7 ( ! ,small ,bus9ess ,act
 7#ae ,u4,s4,c4 #fcf7;b77 is am5d$ by   
ins]t+ aft] p>agraph 7#ae7 ! foll[+ new 
p>agraph3  7#af7 ,assi/ance to          
cannabis-relat$ legitimate bus9esses &  
s]vice provid]s ,! ,adm9i/rator may n   
decl9e to provide assi/ance "u ?is      
subsection to an o!rwise eligible borr[]
 solely because su* borr[] is a         
cannabis-relat$ legitimate bus9ess or   
s]vice provid]4  4  7h7 ,microloans     
,section #g7m7 ( ! ,small ,bus9ess ,act 
7#ae ,u4,s4,c4 #fcf7m77 is am5d$ by add+
 at ! end ! foll[+ new p>agraph3  7#ad7 
,assi/ance to cannabis-relat$ legitimate
 bus9esses & s]vice provid]s ,an        
eligible int]m$i>y may n decl9e to      
provide assi/ance "u ?is subsection to  
an o!rwise eligible borr[] solely       
because su* borr[] is a cannabis-relat$ 
legitimate bus9ess or s]vice provid]4  4
  7i7 ,/ate or local developm5t company 
loans ,title ,v ( ! ,small ,bus9ess     
,inve/m5t ,act ( #aieh 7#ae ,u4,s4,c4   

#fie et seq47 is am5d$ by add+ at ! end 
! foll[+ new section3  #eaa4 ,loans to  
cannabis-relat$ legitimate bus9esses &  
s]vice provid]s ,! ,adm9i/rator may n   
decl9e to provide a gu>antee = a loan "u
 ?is title to an o!rwise eligible ,/ate 
or local developm5t company solely      
because su* ,/ate or local developm5t   
company provides f9anc+ to an entity t  
is a cannabis-relat$ legitimate bus9ess 
or s]vice provid] 7z def9$ 9 section    
#c7;ff7 ( ! ,small ,bus9ess ,act74  4   
#h4 ,no discrim9ation 9 ! provision ( a 
f$]al public b5efit on ! basis (        
cannabis  7a7 ,9 g5]al ,no p]son may be 
d5i$ any ,f$]al public b5efit 7z su* t]m
 is def9$ 9 section #dja7;c7 ( !        
,p]sonal ,responsibility & ,"w          
,opportunity ,reconciliation ,act (     
#aiif 7#h ,u4,s4,c4 #afaa7;c777 on !    
basis ( any use or possession (         
cannabis1 or on ! basis ( a conviction  
or adjudication ( juv5ile del9qu5cy = a 
cannabis (f5se1 by t p]son4  7b7        
,security cle>ances ,f$]al ag5cies may n

 use pa/ or pres5t cannabis or m>ijuana 
use z crit]ia = grant+1 d5y+1 or resc9d+
 a security cle>ance4  #i4 ,no adv]se   
effect = purposes ( ! immigration laws  
7a7 ,9 g5]al ,= purposes ( ! immigration
 laws 7z su* t]m is def9$ 9 section #aja
 ( ! ,immigration & ,nationality ,act71 
cannabis may n be consid]$ a controll$  
sub/ance1 & an ali5 may n be d5i$ any   
b5efit or protection "u ! immigration   
laws bas$ on any ev5t1 includ+ conduct1 
a f9d+1 an admission1 addiction or      
abuse1 an arre/1 a juv5ile adjudication1
 or a conviction1 relat+ to cannabis1   
reg>dless ( :e!r ! ev5t occurr$ be=e1   
on1 or aft] ! effective date ( ?is ,act4
  7b7 ,cannabis def9$ ,! t]m cannabis-- 
7#a7 means all p>ts ( ! plant ,cannabis 
sativa ,l41 :e!r gr[+ or n2 ! se$s !re(2
 ! res9 extract$ f any "p ( su* plant2 &
 e comp\nd1 manufacture1 salt1          
d]ivative1 mixture1 or prep>ation ( su* 
plant1 its se$s or res92 &  7#b7 does n 
include-- 7,a7 hemp1 z def9$ 9 section  
#big;,a ( ! ,agricultural ,m>ket+ ,act (

 #aidf2  7,b7 ! mature /alks ( su*      
plant1 fib] produc$ f su* /alks1 oil or 
cake made f ! se$s ( su* plant1 any o!r 
comp\nd1 manufacture1 salt1 d]ivative1  
mixture1 or prep>ation ( su* mature     
/alks 7except ! res9 extract$ !refrom71 
fib]1 oil1 or cake1 or ! /]iliz$ se$ (  
su* plant :i* is incapable ( g]m9ation2 
or  7,c7 any drug product approv$ "u    
section #eje ( ! ,f$]al ,food1 ,drug1 & 
,cosmetic ,act1 or biological product   
lic5s$ "u section #cea ( ! ,public      
,heal? ,s]vice ,act4  7c7 ,con=m+       
am5dm5ts to immigration & nationality   
act ,! ,immigration & ,nationality ,act 
7#h ,u4,s4,c4 #aaja et seq47 is am5d$-- 
7#a7 9 section #bab7;h71 by /rik+ &     
subp>agraph 7,a77i77,,ii7 ( su*         
subsection ins(> z x relates to a s+le  
(f5se ( simple possession ( #cj grams or
 less ( m>ijuana2  7#b7 9 section       
#bcg7;a77#b77;,b77i71 by /rik+ o!r ?an a
 s+le (f5se involv+ possession = "o's   
own use ( #cj grams or less ( m>ijuana2 
7#c7 9 section #aja7;f77#c71 by /rik+   

7except z su* p>agraph relates to a s+le
 (f5se ( simple possession ( #cj grams  
or less ( m>ihuana72  7#d7 9 section    
#bdd7;c77#b77;,a77iii77,,ii7 by /rik+   
except = s mu* ( su* p>agraph z relates 
to a s+le (f5se ( simple possession (   
#cj grams or less ( m>ijuana2  7#e7 9   
section #bde7;h77#b77;,b7 by /rik+      
7except = s mu* ( su* p>agraph z relat$ 
to a s+le (f5se ( simple possession (   
#cj grams or less ( m>ijuana72  7#f7 9  
section #baj7;c77#b77;,b77ii77,,iii7 by 
/rik+ 1 except = s mu* ( su* p>agraph z 
relates to a s+le (f5se ( simple        
possession ( #cj grams or less (        
m>ihuana2 &  7#g7 9 section             
#bde;,a7d77#b77;,b77ii77,,ii7 by /rik+ 1
 except = s mu* ( su* p>agraph z relates
 to a s+le (f5se ( simple possession (  
#cj grams or less ( m>ihuana4  #aj4     
,res5t5c+ & expungem5t  7a7 ,expungem5t 
( ,non-,viol5t f$]al cannabis (f5se     
convictions = individuals n "u a crim9al
 ju/ice s5t5ce  7#a7 ,9 g5]al ,n lat]   
?an #a ye> aft] ! date ( ! enactm5t (   

?is ,act1 ea* ,f$]al di/rict %all       
conduct a compreh5sive review & issue an
 ord] expung+ ea* conviction or         
adjudication ( juv5ile del9qu5cy = a    
non-viol5t ,f$]al cannabis (f5se ent]$  
by ea* ,f$]al c\rt 9 ! di/rict be=e !   
date ( enactm5t ( ?is ,act & on or aft] 
,may #a1 #aiga4 ,ea* ,f$]al c\rt %all   
also issue an ord] expung+ any arre/s   
associat$ ) ea* expung$ conviction or   
adjudication ( juv5ile del9qu5cy4  7#b7 
,notification ,to ! ext5t practicable1  
ea* ,f$]al di/rict %all notify ea*      
individual ^: arre/1 conviction1 or     
adjudication ( del9qu5cy has be5 expung$
 pursuant to ?is subsection t _! arre/1 
conviction1 or adjudication ( juv5ile   
del9qu5cy has be5 expung$1 & ! effect ( 
su* expungem5t4  7#c7 ,"r to petition   
c\rt = expungem5t ,at any po9t aft] !   
date ( enactm5t ( ?is ,act1 any         
individual ) a prior conviction or      
adjudication ( juv5ile del9qu5cy = a    
non-viol5t ,f$]al cannabis (f5se1 :o is 
n "u a crim9al ju/ice s5t5ce1 may file a

 motion = expungem5t4 ,if ! expungem5t (
 su* a conviction or adjudication (     
juv5ile del9qu5cy is requir$ pursuant to
 ?is ,act1 ! c\rt %all expunge !        
conviction or adjudication1 & any       
associat$ arre/s4 ,if ! individual is   
indig5t1 c\nsel %all be appo9t$ to      
repres5t ! individual 9 any proce$+s "u 
?is subsection4  7#d7 ,seal$ record ,!  
c\rt %all seal all records relat$ to a  
conviction or adjudication ( juv5ile    
del9qu5cy t has be5 expung$ "u ?is      
subsection4 ,su* records may only be    
made available by fur!r ord] ( ! c\rt4  
7b7 ,s5t5c+ review = individuals "u a   
crim9al ju/ice s5t5ce  7#a7 ,9 g5]al ,= 
any individual :o is "u a crim9al ju/ice
 s5t5ce = a non-viol5t ,f$]al cannabis  
(f5se1 ! c\rt t impos$ ! s5t5ce %all1 on
 motion ( ! individual1 ! ,director ( ! 
,bureau ( ,prisons1 ! attorney = !      
,gov]nm5t1 or ! c\rt1 conduct a s5t5c+  
review he>+4 ,if ! individual is        
indig5t1 c\nsel %all be appo9t$ to      
repres5t ! individual 9 any s5t5c+      

review proce$+s "u ?is subsection4  7#b7
 ,pot5tial r$uc$ res5t5c+ ,aft] a s5t5c+
 he>+ "u p>agraph 7#a71 a c\rt %all--   
7,a7 expunge ea* conviction or          
adjudication ( juv5ile del9qu5cy = a    
non-viol5t ,f$]al cannabis (f5se ent]$  
by ! c\rt be=e ! date ( enactm5t ( ?is  
,act1 & any associat$ arre/2  7,b7      
vacate ! exi/+ s5t5ce or disposition (  
juv5ile del9qu5cy &1 if applicable1     
impose any rema9+ s5t5ce or disposition 
( juv5ile del9qu5cy on ! individual z if
 ?is ,act1 & ! am5dm5ts made by ?is     
,act1 7 9 effect at ! "t ! (f5se 0      
committ$2 &  7,c7 ord] t all records    
relat$ to a conviction or adjudication (
 juv5ile del9qu5cy t has be5 expung$ or 
a s5t5ce or disposition ( juv5ile       
del9qu5cy t has be5 vacat$ "u ?is ,act  
be seal$ & only be made available by    
fur!r ord] ( ! c\rt4  7c7 ,effect (     
expungem5t ,an individual :o has _h an  
arre/1 a conviction1 or juv5ile         
del9qu5cy adjudication expung$ "u ?is   
section-- 7#a7 may treat ! arre/1       

conviction1 or adjudication z if x nev] 
occurr$2 &  7#b7 %all be immune f any   
civil or crim9al p5alties relat$ to     
p]jury1 false swe>+1 or false /atem5ts1 
= a failure to disclose su* arre/1      
conviction1 or adjudication4  7d7       
,exception ,an individual :o at s5t5c+  
receiv$ an aggravat+ role adju/m5t      
pursuant to ,unit$ ,/ates ,s5t5c+       
,guidel9e #c;,b#a4a7;a7 9 relation to a 
,f$]al cannabis (f5se conviction %all n 
be eligible = expungem5t ( t ,f$]al     
cannabis (f5se conviction "u ?is        
section4  7e7 ,def9itions ,9 ?is        
section3 7#a7 ,! t]m ,f$]al cannabis    
(f5se means an (f5se t is no long]      
puni%able pursuant to ?is ,act or !     
am5dm5ts made "u ?is ,act4  7#b7 ,! t]m 
expunge means1 ) respect to an arre/1 a 
conviction1 or a juv5ile del9qu5cy      
adjudication1 ! removal ( ! record ( su*
 arre/1 conviction1 or adjudication f   
ea* (ficial index or public record4     
7#c7 ,! t]m "u a crim9al ju/ice s5t5ce  
means1 ) respect to an individual1 t !  

individual is s]v+ a t]m ( probation1   
p>ole1 sup]vis$ release1 imprisonm5t1   
(ficial det5tion1 pre-release cu/ody1 or
 "w release1 pursuant to a s5t5ce or    
disposition ( juv5ile del9qu5cy impos$  
on or aft] ! effective date ( !         
,controll$ ,sub/ances ,act 7,may #a1    
#aiga74  7f7 ,/udy ,! ,comptroll] ,g5]al
 ( ! ,unit$ ,/ates1 9 consultation ) !  
,secret>y ( ,heal? & ,human ,s]vices1   
%all conduct a demographic /udy (       
individuals convict$ ( a ,f$]al cannabis
 (f5se4 ,su* /udy %all include in=mation
 ab\t ! age1 race1 e?nicity1 sex1 & g5d]
 id5tity ( ^? individuals1 ! type (     
community su* us]s dwell 91 & su* o!r   
demographic in=mation z ! ,comptroll]   
,g5]al det]m9es %\ld be includ$4  7g7   
,report ,n lat] ?an #b ye>s aft] ! date 
( ! enactm5t ( ?is ,act1 ! ,comptroll]  
,g5]al ( ! ,unit$ ,/ates %all report to 
,congress ! results ( ! /udy conduct$ "u
 subsection 7f74  #aa4 ,ref]5ces 9 exi/+
 law to m>ijuana or m>ihuana ,:]ev]1 9 !
 /atutes ( ! ,unit$ ,/ates or 9 ! rul+s1

 regulations1 or int]pretations ( v>i\s 
adm9i/rative bureaus & ag5cies ( !      
,unit$ ,/ates-- 7#a7 !re appe>s or may  
appe> ! t]m m>ihuana or m>ijuana1 t t]m 
%all be /ruck & ! t]m cannabis %all be  
ins]t$2 &  7#b7 !re appe>s or may appe> 
! t]m ,m>ihuana or ,m>ijuana1 t t]m %all
 be /ruck & ! t]m ,cannabis %all be     
ins]t$4  #ab4 ,sev]ability ,if any      
provision ( ?is ,act or an am5dm5t made 
by ?is ,act1 or any application ( su*   
provision to any p]son or circum/ance1  
is held to be uncon/itutional1 ! rema9d]
 ( ?is ,act1 ! am5dm5ts made by ?is     
,act1 & ! application ( ?is ,act & !    
am5dm5ts made by ?is ,act to any o!r    
p]son or circum/ance %all n be affect$4 
#ac4 ,cannabis (f5se def9$ ,= purposes (
 ?is ,act1 ! t]m cannabis (f5se means a 
crim9al (f5se relat$ to cannabis-- 7#a7 
t1 "u ,f$]al law1 is no long] puni%able 
pursuant to ?is ,act or ! am5dm5ts made 
"u ?is ,act2 or  7#b7 t1 "u ,/ate law1  
is no long] an (f5se or t 0 designat$ a 
less] (f5se or = :i* ! p5alty 0 r$uc$ "u

 ,/ate law pursuant to or foll[+ !      
adoption ( a ,/ate law au?oriz+ ! sale  
or use ( cannabis4  #ad4 ,rulemak+      
,unless o!rwise provid$ 9 ?is ,act1 n   
lat] ?an #a ye> aft] ! date ( enactm5t (
 ?is ,act1 ! ,dep>tm5t ( ! ,treasury1 ! 
,dep>tm5t ( ,ju/ice1 & ! ,small ,bus9ess
 ,adm9i/ration %all issue or am5d any   
rules1 /&>d op]at+ proc$ures1 & o!r     
legal or policy guidance necess>y to    
c>ry out implem5tation ( ?is ,act4 ,aft]
 ! #a-ye> p]iod1 any publicly issu$     
sub-regulatory guidance1 includ+ any    
compliance guides1 manuals1 advisories &
 notices1 may n be issu$ )\t #fj-;day   
notice to appropriate congressional     
committees4 ,notice %all include a      
description & ju/ification = additional 
guidance4  #ae4 ,societal impact (      
m>ijuana legalization /udy ,!           
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all1 n lat] ?an #b ye>s aft] ! date (  
enactm5t ( ?is ,act1 provide to         
,congress a /udy t addresses ! societal 
impact ( ! legalization ( recreational  

cannabis by ,/ates1 includ+-- 7#a7 sick 
days report$ to employ]s2  7#b7 work]s  
comp5sations claims2  7#c7 tax rev5ue   
remitt$ to ,/ates result+ f legal       
m>ijuana sales2  7#d7 *anges 9 gov]nm5t 
sp5d+ relat$ to en=cem5t actions & c\rt 
proce$+s2  7#e7 ,f$]al welf>e assi/ance 
applications2  7#f7 rate ( arre/s relat$
 to me?amphetam9e possession2  7#g7     
hospitalization rates relat$ to         
me?amphetam9e & n>cotics use2  7#h7 uses
 ( m>ijuana & its byproducts = m$ical   
purposes2  7#i7 uses ( m>ijuana & its   
byproducts = purposes relat+ to ! heal?1
 includ+ ! m5tal heal?1 ( vet]ans2      
7#aj7 arre/ rates ( individuals driv+ "u
 ! influ5ce or driv+ :ile intoxicat$ by 
m>ijuana2  7#aa7 traffic-relat$ dea?s & 
injuries :]e ! driv] is impair$ by      
m>ijuana2  7#ab7 arre/ ( m9ors =        
m>ijuana-relat$ *>ges2  7#ac7 viol5t    
crime rates2  7#ad7 s*ool susp5sions1   
expulsions1 & law en=cem5t ref]rals t   
are m>ijuana-relat$2  7#ae7 high s*ool  
drop\t rates2  7#af7 *anges 9           

di/rict-wide & ,/ate-wide /&>diz$ te/   
scores2  7#ag7 m>ijuana-relat$ hospital 
admissions & poison control calls2      
7#ah7 m>ijuana-relat$ juv5ile           
admittances into sub/ance rehabilitation
 facilities & m5tal heal? cl9ics2  7#ai7
 div]sion ( m>ijuana into neighbor+     
,/ates & drug seizures 9 neighbor+      
,/ates2  7#bj7 m>ijuana plants gr[n on  
public l&s 9 contrav5tion to ,f$]al &   
,/ate laws2 &  7#ba7 c\rt fil+s "u a    
,/ate's organiz$ crime /atutes4  ,pass$ 
! ,h\se ( ,repres5tatives ,decemb] #d1  
#bjbj4;,*]yl ,l4 ,johnson1,cl]k4