,,ii #aafth ,,congress #ast ,session ,s4 #dbj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #g1 #bjai,mr4 ,wyden introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for the taxation and regulation of marijuana products1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,marijuana ,revenue and ,regulation ,act4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,,title ,i--,taxation ,sec4 #aja4 ,establishment of taxes relating to marijuana products4 ,,title ,,ii--,regulation ,subtitle ,a--,amendments ,to decriminalize marijuana at the ,federal level ,sec4 #bja4 ,decriminalization of marijuana4 ,sec4 #bjb4 ,application of the ,controlled ,substances ,act and ,controlled ,substances ,import and ,export ,act to marijuana4 ,sec4 #bjc4 ,conforming and ancillary amendments4 ,subtitle ,b--,federal ,marijuana ,licensing and ,related ,matters ,sec4 #baa4 ,federal marijuana administration4 ,sec4 #bab4 ,addition of marijuana to certain legal authorities relating to intoxicating liquors4 ,subtitle ,c--,other ,amendments ,relating to ,federal ,authority ,regarding ,marijuana ,sec4 #bba4 ,food and ,drug ,administration4 ,sec4 #bbb4 ,transferring agency functions with regard to marijuana4 ,sec4 #bbc4 ,unfair advertising practices4 ,sec4 #bbd4 ,comptroller ,general review of laws and regulations4 ,sec4 #bbe4 ,principal trade negotiating objective regarding marijuana1 marijuana derivatives1 and marijuana products4 ,,title ,,iii--,funding ,sec4 #cja4 ,increased funding for the ,alcohol1 ,tobacco1 and ,marijuana ,tax and ,trade ,bureau4 ,i ,taxation #aja4 ,establishment of taxes relating to marijuana products 7a7 ,in general ,subtitle ,e of title ,i of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new chapter3 #ef ,marijuana ,products ,subchapter ,a4 ,tax on ,marijuana ,products,subchapter ,b4 ,occupational ,tax,subchapter ,c4 ,bond and ,permits,subchapter ,d4 ,operations,subchapter ,e4 ,penalties ,a ,tax on ,marijuana ,products ,sec4 #eija4 ,imposition of tax4,sec4 #eijb4 ,definitions4,sec4 #eijc4 ,liability and method of payment4,sec4 #eijd4 ,exemption from tax4,sec4 #eije4 ,credit1 refund1 or drawback of tax4 #eija4 ,imposition of tax 7a7 ,imposition of tax ,there is hereby imposed on any marijuana product produced in or imported into the ,united ,states a tax equal to-- 7#a7 for any such product sold during the first #e calendar years in which this chapter becomes effective1 the applicable percentage of the price for which such product is sold1 and 7#b7 for any product sold during any calendar year after the period described in paragraph 7#a71 the applicable equivalent rate4 7b7 ,applicable percentage ,for purposes of subsection 7a77#a71 the applicable percentage shall be determined as follows3 7#a7 ,for any marijuana product sold during the first #b calendar years in which this chapter becomes effective1 #aj percent4 7#b7 ,for any marijuana product sold during the calendar year after the period described in paragraph 7#a71 #ae percent4 7#c7 ,for any marijuana product sold during the calendar year after the period described in paragraph 7#b71 #bj percent4 7#d7 ,for any marijuana product sold during the calendar year after the period described in paragraph 7#c71 #be percent4 7c7 ,applicable equivalent rate 7#a7 ,in general ,for purposes of subsection 7a77#b71 the applicable equivalent rate for each calendar year shall be equal to-- 7,a7 in the case of any marijuana product not described in subparagraph 7,b7 which is sold during such year1 the applicable rate per ounce 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 marijuana product containing a marijuana derivative which is sold during such year1 the applicable rate per gram 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 rate 7,a7 ,in general ,for purposes of paragraph 7#a77;,a71 the applicable rate per ounce for any calendar year shall be equal to #be percent of the prevailing sales price of marijuana 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 ,marijuana derivatives ,for purposes of paragraph 7#a77;,b71 the applicable rate per gram of tetrahydrocannabinol shall be equal to the quotient obtained by dividing-- 7i7 the applicable rate per ounce 7as determined under subparagraph 7,a771 by 7ii7 #b4hcdie4 7d7 ,time of attachment on marijuana products ,the tax under this section shall attach to any marijuana 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 ,for purposes of this chapter3 7#a7 ,export warehouse ,the term export warehouse means a bonded internal revenue warehouse for the storage of marijuana products1 upon which the internal revenue tax has not been paid-- 7,a7 for subsequent shipment to a foreign country1 ,puerto ,rico1 the ,virgin ,islands1 or a possession of the ,united ,states1 or 7,b7 for consumption beyond the jurisdiction of the internal revenue laws of the ,united ,states4 7#b7 ,export warehouse proprietor ,the term export warehouse proprietor means any person who operates an export warehouse4 7#c7 ,importer ,the term importer means any person who-- 7,a7 is in the ,united ,states and to whom nontaxpaid marijuana products1 produced in a foreign country1 ,puerto ,rico1 the ,virgin ,islands1 or a possession of the ,united ,states1 are shipped or consigned1 7,b7 removes marijuana products for sale or consumption in the ,united ,states from a customs bonded warehouse1 or 7,c7 smuggles or otherwise unlawfully brings marijuana or marijuana products into the ,united ,states4 7#d7 ,marijuana ,the term marijuana has the meaning given the term marihuana under section #ajb7af7 of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb7af774 7#e7 ,marijuana derivative ,the term marijuana derivative means any article containing marijuana1 or any derivative thereof1 which is not a naturally grown and unadulterated marijuana flower4 7#f7 ,marijuana enterprise ,the term marijuana enterprise means a producer1 export warehouse proprietor1 or importer4 7#g7 ,marijuana product 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term marijuana product means any article which contains marijuana or any marijuana derivative4 7,b7 ,exceptions 7i7 ,in general ,the term marijuana product shall not include-- 7,i7 any article containing marijuana which has been approved by the ,food and ,drug ,administration for sale for therapeutic purposes and is marketed and sold solely for such purpose1 or 7,,ii7 industrial hemp4 7ii7 ,industrial hemp ,for purposes of clause 7i77,,ii71 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#h7 ,marijuana production facility ,the term marijuana production facility means an establishment which is qualified under subchapter ,c to perform any operation for which such qualification is required under such subchapter4 7#i7 ,producer ,the term producer means any person who-- 7,a7 plants1 cultivates1 harvests1 or otherwise produces marijuana or marijuana products1 or 7,b7 manufactures1 compounds1 converts1 processes1 prepares1 or packages marijuana products4 7#aj7 ,removal2 remove ,the terms removal or remove mean-- 7,a7 the removal of marijuana products from the premises of a producer1 or from internal revenue bond under section #eijd1 as the ,secretary shall by regulation prescribe1 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#aa7 ,retailer ,the term retailer means a person who sells marijuana products to consumers4 #eijc4 ,liability and method of payment 7a7 ,liability for tax 7#a7 ,original liability ,the producer or importer of any marijuana product shall be liable for the taxes imposed thereon by section #eija4 7#b7 ,transfer of liability 7,a7 ,in general ,when marijuana products are transferred1 without payment of tax1 pursuant to section #eijd1 the liability for tax shall be transferred in accordance with the provisions of this paragraph4 7,b7 ,transfer between producer and export warehouse proprietor ,in the case of marijuana products which are transferred between the bonded premises of producers and export warehouse proprietors1 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 tax4 7,c7 ,transfer from customs custody to producer ,in the case of marijuana 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,d7 ,returned to bond ,all provisions of this chapter applicable to marijuana products in bond shall be applicable to such articles returned to bond upon withdrawal from the market or returned to bond after previous removal for a tax-exempt purpose4 7b7 ,method of payment of tax 7#a7 ,in general 7,a7 ,determination and payment of tax ,the taxes imposed by section #eija shall be determined at the time of removal of the marijuana products4 ,such taxes shall be paid on the basis of return4 ,the ,secretary shall1 by regulations1 prescribe the period or the event for which such return shall be made and the information to be furnished on such return4 7,b7 ,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 marijuana 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,c7 ,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 marijuana 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 marijuana 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 ,marijuana products brought into the ,united ,states from ,puerto ,rico ,in the case of marijuana products which are brought into the ,united ,states from ,puerto ,rico1 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 marijuana products ,in the case of any marijuana products produced in the ,united ,states at any place other than the premises of a producer that has filed the bond and obtained the permit required under this 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 marijuana 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 ,definition of ,price 7#a7 ,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#b7 ,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 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 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 tax 7a7 ,in general ,marijuana 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 marijuana production facility in research1 development1 or testing 7other than consumer testing or other market analysis7 of processes1 systems1 materials1 or equipment1 relating to marijuana or marijuana 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 ,marijuana 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 marijuana 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 country1 ,puerto ,rico1 the ,virgin ,islands1 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 ,marijuana 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 ,marijuana products released in bond from customs custody ,marijuana 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 ,marijuana products exported and returned ,marijuana 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 ,revenue and ,regulation ,act1 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 marijuana 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 producer1 importer1 or export warehouse proprietor on proof satisfactory to the ,secretary that the claimant producer1 importer1 or export warehouse proprietor has paid the tax on-- 7,a7 marijuana 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 ,marijuana products lost or destroyed in bond 7,a7 ,extent of loss allowance ,no tax shall be collected in respect of marijuana 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 marijuana 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 marijuana products4 7,b7 ,proof of loss ,in any case in which marijuana products are lost or destroyed1 whether by theft or otherwise1 the ,secretary may require the proprietor of a marijuana production facility or other person liable for the tax to file a claim for relief from the tax and submit proof as to the cause of such loss4 ,in every case where it appears that the loss was by theft1 the burden shall be upon the proprietor of the marijuana 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 marijuana 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 marijuana products by theft shall only be allowed to the extent that the claimant is not indemnified against or recompensed in respect of the tax for such loss4 7,e7 ,applicability ,the provisions of this paragraph shall extend to and apply in respect of marijuana products lost after the tax was determined and before completion of the physical removal of the marijuana products from the bonded premises4 7#c7 ,voluntary destruction ,the proprietor of a marijuana production facility or other persons liable for the tax imposed by this chapter or by section #gfeb with respect to any marijuana 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 marijuana 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 register kept in the office of the official in charge of the internal revenue district4 7#b7 ,storage ,nothing contained in paragraph 7#a7 shall require imposition of an occupational tax for the storage of marijuana products at a location other than the place where such products are sold or offered for 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 marijuana production facility 7#a7 ,in general ,except as authorized by the ,secretary or on the bonded premises of a marijuana production facility duly authorized to produce marijuana products according to law-- 7,a7 no marijuana may be planted1 cultivated1 harvested1 or grown in any building or on any premises1 and 7,b7 no marijuana product may be manufactured1 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 marijuana product4 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 marijuana 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 marijuana enterprise are not adequate to protect the revenue1 7#b7 the activity proposed to be carried out at such premises does not meet such minimum capacity or activity requirements as the ,secretary may prescribe1 or 7#c7 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 criminal law relating to marijuana or marijuana products1 not likely to maintain operations in compliance with this chapter1 7,b7 has been convicted of a felony violation of any provision of ,federal or ,state criminal law relating to marijuana or marijuana products1 or 7,c7 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 marijuana 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 7,e7 is1 by reason of previous or current legal proceedings involving a felony violation of any other provision of ,federal criminal law relating to marijuana1 not likely to maintain operations in compliance with this chapter1 or 7,f7 has been convicted of a felony violation of any provision of ,federal or ,state criminal law relating to marijuana or marijuana products1 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 marijuana products after removal4,sec4 #eicd4 ,restrictions relating to marks1 labels1 notices1 and packages4,sec4 #eice4 ,restriction on importation of previously exported marijuana products4 #eica4 ,inventories1 reports1 and records ,every producer1 importer1 and export warehouse proprietor 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 marijuana 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 marijuana 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 marijuana 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 marijuana products4 7e7 ,exceptions ,subject to regulations prescribed by the ,secretary1 marijuana 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 marijuana 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 marijuana 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 #eijd1 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 marijuana 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 marijuana 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 marijuana 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 marijuana 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 marijuana products before such package is emptied4 #eice4 ,restriction on importation of previously exported marijuana products 7a7 ,export labeled marijuana products 7#a7 ,in general ,marijuana 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 ,marijuana or ,marijuana ,products for ,export 7#a7 ,every person who sells1 relands1 or receives within the jurisdiction of the ,united ,states any marijuana products which have been labeled or shipped for exportation under this chapter1 7#b7 every person who sells or receives such relanded marijuana 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 marijuana 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 marijuana 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 marijuana 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 marijuana products subject to tax under this chapter1 or 7#e7 with intent to defraud the ,united ,states1 purchases1 receives1 possesses1 offers for sale1 or sells or otherwise disposes of1 any marijuana 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 ,offenses relating to retail transactions ,any retailer who sells1 in any single transaction1 more than #a ounce of any marijuana product 7or in the case of any marijuana product containing a marijuana derivative1 an equivalent amount1 as established by the ,secretary7 shall be1 upon conviction1 fined not more than #aj1jjj1 or imprisoned for not more than #e years1 or both4 7c7 ,other ,offenses ,whoever1 otherwise than as provided in subsections 7a7 and 7b7 and section #eiaa7;b71 violates any provision of this chapter1 or of regulations prescribed thereunder1 shall1 for each such offense1 be fined not more than #a1jjj1 or imprisoned not more than #a year1 or both4 7d7 ,liability to tax ,any person who possesses marijuana products in violation of subsection 7a7 shall be liable for a tax equal to the tax on such articles4 4 7b7 ,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 marijuana industry1 including the number of persons operating marijuana 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 7c7 ,conforming ,amendment ,section #fajc7o77#a77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking and firearms and inserting firearms1 and marijuana4 7d7 ,clerical amendment ,the table of chapters for subtitle ,e of title ,i of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new chapter3 ,chapter #ef4 ,marijuana ,products 4 7e7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to sales1 and applications for permits under section #eibb of the ,internal ,revenue ,code of #aihf 7as added by subsection 7a771 after #ahj days after the date of the enactment of this ,act4 7#b7 ,special rules for existing businesses ,in the case of any producer operating under a permit issued on or before the date of the enactment of this ,act under ,state law1 the requirements under section #eibb of such ,code 7as so added7 shall apply beginning on the date that is #f months after the date of the enactment of this ,act4 ,,ii ,regulation ,a ,amendments ,to decriminalize marijuana at the ,federal level #bja4 ,decriminalization of marijuana 7a7 ,removal from schedule of controlled substances ,notwithstanding any other provision of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hja et seq471 the ,attorney ,general shall1 not later than #fj days after the date of the enactment of this ,act1 issue a final order that removes marijuana in any form from all schedules under section #bjb7;c7 of that ,act 7#ba ,u4,s4,c4 #hab7;c774 7b7 ,conforming amendment ,to remove legislative deadwood ,subsection 7c7 of section #bjb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hab7 is amended to read as follows3 7c7 ,cross reference to schedules of ,controlled ,substances ,schedules ,i1 ,,ii1 ,,iii1 ,,iv1 and ,v shall consist of the drugs and other substances 7by whatever official name1 common or usual name1 chemical name1 or brand name designated7 that are set forth in the respective schedules in part #acjh of title #ba1 ,code of ,federal ,regulations1 as they may be amended from time to time1 or in any successor regulation4 4 #bjb4 ,application of the ,controlled ,substances ,act and ,controlled ,substances ,import and ,export ,act to marijuana ,part ,a of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hja et seq47 is amended by adding at the end the following3 #ajc4 ,application to marihuana 7a7 ,general nonapplication ,except as provided in this section1 this title and title ,,iii do not apply to marihuana4 7b7 ,exception3 prohibition on certain transportations and shipments ,it shall be unlawful to ship or transport marihuana from any place outside a ,state1 territory1 or district of the ,united ,states1 or other place noncontiguous to but subject to the jurisdiction of the ,united ,states1 into that ,state1 territory1 or district of the ,united ,states1 or place1 when such marihuana is intended by any person interested therein to be received1 possessed1 sold1 or in any manner used1 in violation of any law of such ,state1 territory1 district1 or place4 7c7 ,penalty ,whoever knowingly violates subsection 7b7 shall be fined under title #ah1 ,united ,states ,code1 or imprisoned not more than one year1 or both4 4 #bjc4 ,conforming and ancillary amendments 7a7 ,modification of definition of felony drug offense ,section #ajb7dd7 of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb7dd77 is amended by striking marihuana14 7b7 ,elimination of marijuana penalty provisions ,part ,d of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hda et seq47 is amended-- 7#a7 in section #dja-- 7,a7 by striking subsection 7b77#a77;,a77vii72 7,b7 by striking subsection 7b77#a77;,b77vii72 7,c7 by striking subsection 7b77#a77;,d72 and 7,d7 by striking subsection 7b77#d72 7#b7 in section #djb7;c77#b77;,b71 by striking marihuana12 7#c7 in section #djc7;d77#a71 by striking marihuana12 7#d7 in section #dah7;a71 by striking the last sentence2 7#e7 in section #dai7;a71 by striking the last sentence2 7#f7 in section #dbb7;d71 in the matter preceding paragraph 7#a71 by striking marijuana12 and 7#g7 in section #dbb7;d77#e71 by striking 1 such as a marihuana cigarette14 7c7 ,removal of prohibition on import and export ,section #ajaj of the ,controlled ,substances ,import and ,export ,act 7#ba ,u4,s4,c4 #ifj7 is amended-- 7#a7 by striking subparagraph 7,g7 of subsection 7b77#a72 7#b7 by striking subparagraph 7,g7 of subsection 7b77#b72 and 7#c7 by striking paragraph 7#d7 of subsection 7b74 7d7 ,limiting the application of the ,national ,forest ,system ,drug ,control ,act of #aihf to controlled substances other than marijuana ,the ,national ,forest ,system ,drug ,control ,act of #aihf 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 7e7 ,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 marihuana14 7f7 ,national youth anti-,drug media campaign ,section #gji of the ,office of ,national ,drug ,control ,policy ,reauthorization ,act of #aiih 7#ba ,u4,s4,c4 #agjh7 is amended by striking subsection 7j7 7relating to prevention of marijuana use74 ,b ,federal ,marijuana ,licensing and ,related ,matters #baa4 ,federal marijuana administration ,the ,federal ,alcohol ,administration ,act 7#bg ,u4,s4,c4 #bja et seq47 is amended by adding at the end the following3 ,,iii ,marijuana #cja4 ,unlawful businesses without marijuana permit 7a7 ,import ,it shall be unlawful1 except pursuant to a permit issued under this title by the ,secretary of the ,treasury 7hereinafter in this title referred to as the ,secretary7-- 7#a7 to engage in the business of importing marijuana into the ,united ,states2 or 7#b7 for any person so engaged to sell1 offer or deliver for sale1 contract to sell1 or ship1 in interstate or foreign commerce1 directly or indirectly or through an affiliate1 marijuana so imported4 7b7 ,manufacture and sale ,it shall be unlawful1 except pursuant to a permit issued under this title by the ,secretary-- 7#a7 to engage in the business of cultivating1 producing1 manufacturing1 packaging1 or warehousing marijuana2 or 7#b7 for any person so engaged to sell1 offer or deliver for sale1 contract to sell1 or ship1 in interstate or foreign commerce1 directly or indirectly or through an affiliate1 marijuana so cultivated1 produced1 manufactured1 packaged1 or warehoused4 7c7 ,resale ,it shall be unlawful1 except pursuant to a permit issued under this title by the ,secretary-- 7#a7 to engage in the business of purchasing marijuana for resale at wholesale2 or 7#b7 for any person so engaged to receive or to sell1 offer or deliver for sale1 contract to sell1 or ship1 in interstate or foreign commerce1 directly or indirectly or through an affiliate1 marijuana so purchased4 7d7 ,remedies for violations 7#a7 ,criminal fine 7,a7 ,generally ,whoever violates this section shall be fined not more than #a1jjj4 7,b7 ,settlement in compromise ,the ,secretary may decide not to refer a violation of this section to the ,attorney ,general for prosecution but instead to collect a payment from the violator of no more than #ejj for that violation4 7#b7 ,civil ,action for relief ,the ,attorney ,general may1 in a civil action1 obtain appropriate relief to prevent and restrain a violation of this title4 #cjb4 ,procedure for issuance of marijuana permits 7a7 ,who entitled to permit 7#a7 ,generally ,the ,secretary shall issue a permit for operations requiring a permit under section #cja unless the ,secretary finds that-- 7,a7 the applicant 7or if the applicant is a corporation1 any of its officers1 directors1 or principal stockholders7 has been convicted of a disqualifying offense2 7,b7 the applicant is1 by reason of business experience1 financial standing1 or trade connections1 not likely to commence operations within a reasonable period or to maintain such operations in conformity with ,federal law2 or 7,c7 the operations proposed to be conducted by the applicant are in violation of the law of the ,state in which they are to be conducted4 7#b7 ,disqualifying offenses ,for the purposes of paragraph 7#a7-- 7,a7 ,generally ,except as provided in subparagraph 7,b7 a disqualifying offense is an offense related to the production1 consumption1 or sale of marijuana that is-- 7i7 a felony under ,federal or ,state law1 if the conviction occurred not later than #e years before the date of the application2 or 7ii7 a misdemeanor under ,federal law1 if the conviction occurred not later than #c years before the date of the application4 7,b7 ,excluded offenses ,a disqualifying offense does not include a ,federal or ,state offense based on conduct that-- 7i7 was legal under ,state law in the ,state when and where the conduct took place2 or 7ii7 is1 as of the date of the application1 no longer an offense in that ,state4 7b7 ,refusal of permit2 hearing ,if upon examination of any application for a permit the ,secretary has reason to believe that the applicant is not entitled to such permit1 the ,secretary shall so notify the applicant and1 upon request by the applicant1 afford the applicant due notice and opportunity for hearing on the application4 ,if the ,secretary1 after affording such notice and opportunity for hearing1 still finds that the applicant is not entitled to a permit hereunder1 the ,secretary shall by order deny the application stating the findings which are the basis for the order4 7c7 ,form of application 7#a7 ,generally ,the ,secretary shall-- 7,a7 prescribe the manner and form of applications for permits under this title 7including the facts to be set forth in the application72 7,b7 prescribe the form of such permits2 7,c7 specify in any permit the authority conferred by the permit and the conditions of that permit in accordance with this title4 7#b7 ,separate types of applications and permits ,to the extent deemed necessary by the ,secretary for the efficient administration of this title1 the ,secretary may require separate applications and permits with respect to the various classes of marijuana1 and with respect to the various classes of persons entitled to permits under this title4 7#c7 ,disclaimer ,the issuance of a permit under this title does not deprive the ,united ,states of any remedy for a violation of law4 7d7 ,conditions ,a permit under this title shall be conditioned upon-- 7#a7 compliance with all other ,federal laws relating to production1 sale and consumption of marijuana1 as well as compliance with all ,state laws relating to said activities in the ,state in which the permit applicant resides and does business2 and 7#b7 payment to the ,secretary of a reasonable permit fee in an amount determined by the ,secretary to be sufficient over time to offset the cost of implementing and overseeing all aspects of marijuana regulation by the ,federal ,government4 7e7 ,revocation1 suspension1 and annulment 7#a7 ,generally ,after due notice and opportunity for hearing1 the ,secretary may order a permit under this title-- 7,a7 revoked or suspended for such period as the ,secretary deems appropriate1 if the ,secretary finds that the permittee has willfully violated any of the conditions of the permit1 but for a first violation of the conditions the permit shall be subject to suspension only2 7,b7 revoked if the ,secretary finds that the permittee has not engaged in the operations authorized by the permit for a period of more than #b years2 or 7,c7 annulled if the ,secretary finds that the permit was procured through fraud1 or misrepresentation1 or concealment of material fact4 7#b7 ,order to state basis for order ,the order shall state the findings which are the basis for the order4 7f7 ,service of orders ,each order of the ,secretary with respect to any denial of application1 suspension1 revocation1 annulment1 or other proceedings1 shall be served-- 7#a7 in person by any officer or employee of the ,secretary designated by him or any internal revenue or customs officer authorized by the ,secretary for the purpose2 or 7#b7 by mailing the order by registered mail1 addressed to the applicant or respondent at his last known address in the records of the ,secretary4 7g7 ,duration 7#a7 ,general rule ,except as otherwise provided in this subsection1 a permit issued under this title shall continue in effect until suspended1 revoked1 or annulled as provided in this title1 or voluntarily surrendered4 7#b7 ,effect of transfer ,if operations under a permit issued under this title are transferred1 the permit automatically terminates #cj days after the date of that transfer1 unless an application is made by the transferee before the end of that period for a permit under this title for those operations4 ,if such an application is made1 the outstanding permit shall continue in effect until such application is finally acted on by the ,secretary4 7#c7 ,definition of transfer ,for the purposes of this section1 the term transfer means any change of ownership or control1 whether voluntary or by operation of law4 7h7 ,judicial review ,a permittee or applicant for a permit under this title may obtain judicial review under chapter #g of title #e1 ,united ,states ,code1 of the denial of the application of that applicant or1 in the case of a permittee1 the denial of an application by the transferee of that permittee4 7i7 ,statute of limitations 7#a7 ,in general ,no proceeding for the suspension or revocation of a permit for violation of any condition thereof relating to compliance with ,federal law shall be instituted by the ,secretary more than #ah months after conviction of the violation of ,federal law1 or1 if no conviction has been had1 more than #c years after the violation occurred4 7#b7 ,compromise ,no permit shall be suspended or revoked for a violation of any such condition thereof if the alleged violation of ,federal law has been compromised by any officer of the ,government authorized to compromise such violation4 #cjc4 ,definitions ,in this title-- 7#a7 the term marijuana has the meaning given the term marihuana in section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb72 and 7#b7 the term ,state includes the ,district of ,columbia1 ,puerto ,rico1 and any territory or possession of the ,united ,states4 4 #bab4 ,addition of marijuana to certain legal authorities relating to intoxicating liquors 7a7 ,wilson ,act ,the ,act of ,august #h1 #ahij 7commonly known as the ,wilson ,act or the ,original ,packages ,act2 #bg ,u4,s4,c4 #aba71 is amended-- 7#a7 by inserting 1 or marijuana1 after intoxicating liquors or liquids2 and 7#b7 by striking such liquids or liquors and inserting such liquids1 liquors1 or marijuana4 7b7 ,webb-,kenyon ,act ,the ,act of ,march #a1 #aiac 7commonly known as the ,webb-,kenyon ,act2 #bg ,u4,s4,c4 #abb71 is amended-- 7#a7 by inserting marijuana or any after whatsoever1 of any2 and 7#b7 by inserting marijuana or after which said4 7c7 ,victims of ,trafficking and ,violence ,protection ,act of #bjjj ,section #b of the ,victims of ,trafficking and ,violence ,protection ,act of #bjjj 7#bg ,u4,s4,c4 #abb;a7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#d7 and 7#e71 respectively2 and 7,b7 by inserting after paragraph 7#b7 the following new paragraph3 7#c7 the term marijuana has the meaning given the term marihuana in section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb72 2 and 7#b7 in subsections 7b7 and 7c71 by inserting or marijuana after intoxicating liquor each place it appears4 ,c ,other ,amendments ,relating to ,federal ,authority ,regarding ,marijuana #bba4 ,food and ,drug ,administration ,the ,food and ,drug ,administration shall have the same authorities with respect to marijuana as the ,administration has with respect to alcohol4 #bbb4 ,transferring agency functions with regard to marijuana 7a7 ,transfer of jurisdiction from ,drug ,enforcement ,administration to ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives ,the functions of the ,attorney ,general1 acting through the ,administrator of the ,drug ,enforcement ,administration relating to marijuana enforcement1 shall hereafter be administered by the ,attorney ,general1 acting through the ,director of the ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives4 7b7 ,redesignation of ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives as ,bureau of ,alcohol1 ,tobacco1 ,marijuana1 ,firearms and ,explosives 7#a7 ,redesignation ,the ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives is hereby renamed the ,bureau of ,alcohol1 ,tobacco1 ,marijuana1 ,firearms and ,explosives4 7#b7 ,references ,any reference to the ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives in any law1 regulation1 map1 document1 record1 or other paper of the ,united ,states shall be deemed to be a reference to the ,bureau of ,alcohol1 ,tobacco1 ,marijuana1 ,firearms and ,explosives4 7c7 ,redesignation of ,alcohol and ,tobacco ,tax and ,trade ,bureau as ,alcohol1 ,tobacco1 and ,marijuana ,tax and ,trade ,bureau 7#a7 ,redesignation ,section #aaaa7;d7 of the ,homeland ,security ,act of #bjjb 7#f ,u4,s4,c4 #eca7;d77 is amended by striking ,tax and ,trade ,bureau each place it appears and inserting ,alcohol1 ,tobacco1 and ,marijuana ,tax and ,trade ,bureau4 7#b7 ,references ,any reference to the ,tax and ,trade ,bureau or the ,alcohol and ,tobacco ,tax and ,trade ,bureau in any law1 regulation1 map1 document1 record1 or other paper of the ,united ,states shall be deemed to be a reference to the ,alcohol1 ,tobacco1 and ,marijuana ,tax and ,trade ,bureau4 #bbc4 ,unfair advertising practices 7a7 ,in general ,it shall be unlawful for any person engaged in the business of importing marijuana into the ,united ,states1 or cultivating1 producing1 manufacturing1 packaging1 or warehousing marijuana1 or purchasing marijuana for resale at wholesale1 directly or indirectly or through an affiliate1 to publish or disseminate or cause to be published or disseminated by radio broadcast1 or in any newspaper1 periodical or other publication or by any sign or outdoor advertisement or any other printed or graphic matter1 any advertisement of marijuana1 if such advertisement is in1 or is calculated to induce sales in1 interstate or foreign commerce1 or is disseminated by mail1 unless such advertisement is in conformity with such regulations1 to be prescribed by the ,secretary of the ,treasury1 or the ,secretary's delegate 7referred to in this section as the ,secretary71 as will-- 7#a7 prevent deception of the consumer with respect to the products advertised and as will prohibit1 irrespective of falsity1 such statements relating to manufacturing processes1 analyses1 guaranties1 and scientific or irrelevant matters as the ,secretary finds to be likely to mislead the consumer2 7#b7 provide the consumer with adequate information as to the identity and quality of the products advertised1 the characteristics thereof1 and the person responsible for the advertisement2 7#c7 prohibit statements that are disparaging of a competitor's products or are false1 misleading1 obscene1 or indecent2 and 7#d7 prevent statements inconsistent with any statement on the labeling of the products advertised4 7b7 ,nonapplication to publishers and broadcasters ,the prohibitions of this section and regulations thereunder shall not apply to the publisher of any newspaper1 periodical1 or other publication1 or radio broadcaster1 unless such publisher or radio broadcaster is engaged in the business of importing marijuana into the ,united ,states1 or cultivating1 producing1 manufacturing1 packaging1 or warehousing marijuana1 or purchasing marijuana for resale at wholesale1 directly or indirectly or through an affiliate4 #bbd4 ,comptroller ,general review of laws and regulations ,the ,comptroller ,general shall conduct a review of ,federal laws1 regulations1 and policies to determine if any changes in them are desirable in the light of the purposes and provisions of this ,act4 ,not later than #b years after the date of the enactment of this ,act1 the ,comptroller ,general shall make to ,congress and the relevant agencies such recommendations relating to the results of that review as the ,comptroller ,general deems appropriate4 #bbe4 ,principal trade negotiating objective regarding marijuana1 marijuana derivatives1 and marijuana products ,the principal negotiating objectives of the ,united ,states with respect to trade shall include the removal of unjustified foreign barriers to trade in marijuana1 marijuana derivatives1 and marijuana products4 ,,iii ,funding #cja4 ,increased funding for the ,alcohol1 ,tobacco1 and ,marijuana ,tax and ,trade ,bureau ,in addition to any other amounts authorized to be appropriated to the ,alcohol1 ,tobacco1 and ,marijuana ,tax and ,trade ,bureau1 there is authorized to be appropriated1 for each of the fiscal years #bjai and #bjbj1 #aj1jjj1jjj1 which shall be used to carry out this ,act and the amendments made by this ,act4