Marijuana Opportunity Reinvestment and Expungement Act
Summary
House Report 117–276, Part 1, is the report of the Committee on the Judiciary, submitted by Mr. Nadler and ordered to be printed March 24, 2022, with minority views, on H.R. 3617, the Marijuana Opportunity Reinvestment and Expungement Act, or MORE Act. The Committee reports favorably, with an amendment, the bill to decriminalize and deschedule cannabis, provide for reinvestment in persons adversely affected by the War on Drugs, and provide for expungement of certain cannabis offenses. The contents list a purpose and summary, background and need, hearings, committee votes, a section-by-section analysis, committee correspondence and minority views. The amendment's findings begin by stating that communities most harmed by cannabis enforcement are addressed.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Crpt Crpt 117Hrpt276 Crpt 117Hrpt276 Pt1
- Case
- Crpt Crpt 117Hrpt276 Crpt 117Hrpt276 Pt1
Cite this document
“Marijuana Opportunity Reinvestment and Expungement Act.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-crpt-117hrpt276-crpt-117hrpt276-pt1/
, SHA-256 ca29548767ad350945ea9409c93743d8551f98023f564bc6de210a63dde74d3f.Full text
117TH CONGRESS REPT. 117–276
" HOUSE OF REPRESENTATIVES !
2d Session Part 1
MARIJUANA OPPORTUNITY REINVESTMENT AND
EXPUNGEMENT ACT
MARCH 24, 2022.—Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. NADLER, from the Committee on the Judiciary,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 3617]
The Committee on the Judiciary, to whom was referred the bill
(H.R. 3617) to decriminalize and deschedule cannabis, to provide
for reinvestment in certain persons adversely impacted by the War
on Drugs, to provide for expungement of certain cannabis offenses,
and for other purposes, having considered the same, reports favor-
ably thereon with an amendment and recommends that the bill as
amended do pass.
CONTENTS
Page
Purpose and Summary ............................................................................................ 24
Background and Need for the Legislation ............................................................. 25
Hearings ................................................................................................................... 32
Committee Consideration ........................................................................................ 33
Committee Votes ...................................................................................................... 33
Committee Oversight Findings ............................................................................... 43
Committee Estimate of Budgetary Effects ............................................................ 43
New Budget Authority and Congressional Budget Office Cost Estimate ........... 43
Duplication of Federal Programs ............................................................................ 43
Performance Goals and Objectives ......................................................................... 43
Advisory on Earmarks ............................................................................................. 43
Section-by-Section Analysis .................................................................................... 43
Changes in Existing Law Made by the Bill, as Reported ..................................... 51
Committee Correspondence .................................................................................... 461
Minority Views ......................................................................................................... 480
The amendment is as follows:
ctelli on DSK11ZRN23PROD with REPORTS
29–006
VerDate Sep 11 2014 06:48 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
2
Strike all after the enacting clause and insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Marijuana Opportunity Reinvestment and
Expungement Act’’ or the ‘‘MORE Act’’.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) The communities that have been most harmed by cannabis prohibition are
benefiting the least from the legal marijuana marketplace.
(2) A legacy of racial and ethnic injustices, compounded by the dispropor-
tionate collateral consequences of 80 years of cannabis prohibition enforcement,
now limits participation in the industry.
(3) 37 States, the District of Columbia, Puerto Rico, Guam, and the U.S. Vir-
gin Islands have adopted laws allowing legal access to cannabis, and 15 States,
the District of Columbia, the Commonwealth of the Northern Mariana Islands,
and Guam have adopted laws legalizing cannabis for adult recreational use.
(4) A total of 47 States have reformed their laws pertaining to cannabis de-
spite the Schedule I status of marijuana and its Federal criminalization.
(5) Legal cannabis sales totaled $20,000,000,000 in 2020 and are projected to
reach $40,500,000,000 by 2025.
(6) According to the American Civil Liberties Union (ACLU), enforcing can-
nabis prohibition laws costs taxpayers approximately $3.6 billion a year.
(7) The continued enforcement of cannabis prohibition laws results in over
600,000 arrests annually, disproportionately impacting people of color who are
almost 4 times more likely to be arrested for cannabis possession than their
White counterparts, despite equal rates of use across populations.
(8) People of color have been historically targeted by discriminatory sen-
tencing practices resulting in Black men receiving drug sentences that are 13.1
percent longer than sentences imposed for White men and Latinos being nearly
6.5 times more likely to receive a Federal sentence for cannabis possession than
non-Hispanic Whites.
(9) In 2013, simple cannabis possession was the fourth most common cause
of deportation for any offense and the most common cause of deportation for
drug law violations.
(10) Fewer than one-fifth of cannabis business owners identify as minorities
and only approximately 4 percent are black.
(11) Applicants for cannabis licenses are limited by numerous laws, regula-
tions, and exorbitant permit applications, licensing fees, and costs in these
States, which can require more than $700,000.
(12) Historically disproportionate arrest and conviction rates make it particu-
larly difficult for people of color to enter the legal cannabis marketplace, as
most States bar these individuals from participating.
(13) Federal law severely limits access to loans and capital for cannabis busi-
nesses, disproportionately impacting minority small business owners.
(14) Some States and municipalities have taken proactive steps to mitigate
inequalities in the legal cannabis marketplace and ensure equal participation
in the industry.
SEC. 3. DECRIMINALIZATION OF CANNABIS.
(a) CANNABIS REMOVED FROM SCHEDULE OF CONTROLLED SUBSTANCES.—
(1) REMOVAL IN STATUTE.—Subsection (c) of schedule I of section 202(c) of the
Controlled Substances Act (21 U.S.C. 812) is amended—
(A) by striking ‘‘(10) Marihuana.’’; and
(B) by striking ‘‘(17) Tetrahydrocannabinols, except for
tetrahydrocannabinols in hemp (as defined under section 297A of the Agri-
cultural Marketing Act of 1946).’’.
(2) REMOVAL FROM SCHEDULE.—Not later than 180 days after the date of the
enactment of this Act, the Attorney General shall finalize a rulemaking under
section 201(a)(2) removing marihuana and tetrahydrocannabinols from the
schedules of controlled substances. For the purposes of the Controlled Sub-
stances Act, marihuana and tetrahydrocannabinols shall each be deemed to be
a drug or other substance that does not meet the requirements for inclusion in
any schedule. A rulemaking under this paragraph shall be considered to have
taken effect as of the date of enactment of this Act for purposes of any offense
committed, case pending, conviction entered, and, in the case of a juvenile, any
ctelli on DSK11ZRN23PROD with REPORTS
offense committed, case pending, and adjudication of juvenile delinquency en-
tered before, on, or after the date of enactment of this Act.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
3
(b) CONFORMING AMENDMENTS TO CONTROLLED SUBSTANCES ACT.—The Controlled
Substances Act (21 U.S.C. 801 et seq.) is amended—
(1) in section 102(44) (21 U.S.C. 802(44)), by striking ‘‘marihuana,’’;
(2) in section 401(b) (21 U.S.C. 841(b))—
(A) in paragraph (1)—
(i) in subparagraph (A)—
(I) in clause (vi), by inserting ‘‘or’’ after the semicolon;
(II) by striking clause (vii); and
(III) by redesignating clause (viii) as clause (vii);
(ii) in subparagraph (B)—
(I) in clause (vi), by inserting ‘‘or’’ after the semicolon;
(II) by striking clause (vii); and
(III) by redesignating clause (viii) as clause (vii);
(iii) in subparagraph (C), in the first sentence, by striking ‘‘subpara-
graphs (A), (B), and (D)’’ and inserting ‘‘subparagraphs (A) and (B)’’;
(iv) by striking subparagraph (D);
(v) by redesignating subparagraph (E) as subparagraph (D); and
(vi) in subparagraph (D)(i), as so redesignated, by striking ‘‘subpara-
graphs (C) and (D)’’ and inserting ‘‘subparagraph (C)’’;
(B) by striking paragraph (4); and
(C) by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5),
and (6), respectively;
(3) in section 402(c)(2)(B) (21 U.S.C. 842(c)(2)(B)), by striking ‘‘, marihuana,’’;
(4) in section 403(d)(1) (21 U.S.C. 843(d)(1)), by striking ‘‘, marihuana,’’;
(5) in section 418(a) (21 U.S.C. 859(a)), by striking the last sentence;
(6) in section 419(a) (21 U.S.C. 860(a)), by striking the last sentence;
(7) in section 422(d) (21 U.S.C. 863(d))—
(A) in the matter preceding paragraph (1), by striking ‘‘marijuana,’’; and
(B) in paragraph (5), by striking ‘‘, such as a marihuana cigarette,’’; and
(8) in section 516(d) (21 U.S.C. 886(d)), by striking ‘‘section 401(b)(6)’’ each
place the term appears and inserting ‘‘section 401(b)(5)’’.
(c) OTHER CONFORMING AMENDMENTS.—
(1) NATIONAL FOREST SYSTEM DRUG CONTROL ACT OF 1986.—The National For-
est System Drug Control Act of 1986 (16 U.S.C. 559b et seq.) is amended—
(A) in section 15002(a) (16 U.S.C. 559b(a)) by striking ‘‘marijuana and
other’’;
(B) in section 15003(2) (16 U.S.C. 559c(2)) by striking ‘‘marijuana and
other’’; and
(C) in section 15004(2) (16 U.S.C. 559d(2)) by striking ‘‘marijuana and
other’’.
(2) INTERCEPTION OF COMMUNICATIONS.—Section 2516 of title 18, United
States Code, is amended—
(A) in subsection (1)(e), by striking ‘‘marihuana,’’; and
(B) in subsection (2) by striking ‘‘marihuana’’.
(3) FMCSA PROVISIONS.—
(A) CONFORMING AMENDMENT.—Section 31301(5) of title 49, United States
Code, is amended by striking ‘‘section 31306,’’ and inserting ‘‘sections
31306, 31306a, and subsections (b) and (c) of section 31310,’’.
(B) DEFINITION.—Section 31306(a) of title 49, United States Code, is
amended—
(i) by striking ‘‘means any substance’’ and inserting the following:
‘‘means—
‘‘(A) any substance’’; and
(ii) by striking the period at the end and inserting ‘‘; and
‘‘(B) any substance not covered under subparagraph (A) that was a sub-
stance under such section as of December 1, 2018, and specified by the Sec-
retary of Transportation.’’.
(C) DISQUALIFICATIONS.—Section 31310(b) of title 49, United States Code,
is amended by adding at the end the following:
‘‘(3) In this subsection and subsection (c), the term ‘controlled substance’ has the
meaning given such term in section 31306(a).’’.
(4) FAA PROVISIONS.—Section 45101 of title 49, United States Code, is amend-
ed—
(A) by striking ‘‘means any substance’’ and inserting the following:
‘‘means—
ctelli on DSK11ZRN23PROD with REPORTS
‘‘(A) any substance’’; and
(B) by striking the period at the end and inserting ‘‘; and
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
4
‘‘(B) any substance not covered under subparagraph (A) that was a sub-
stance under such section as of December 1, 2018, and specified by the Sec-
retary of Transportation.’’.
(5) FRA PROVISIONS.—Section 20140(a) of title 49, United States Code, is
amended—
(A) by striking ‘‘means any substance’’ and inserting the following:
‘‘means—
‘‘(A) any substance’’; and
(B) by striking the period at the end and inserting ‘‘; and
‘‘(B) any substance not covered under subparagraph (A) that was a sub-
stance under such section as of December 1, 2018, and specified by the Sec-
retary of Transportation.’’.
(6) FTA PROVISIONS.—Section 5331(a)(1) of title 49, United States Code, is
amended—
(A) by striking ‘‘means any substance’’ and inserting the following:
‘‘means—
‘‘(A) any substance’’; and
(B) by striking the period at the end and inserting ‘‘; and
‘‘(B) any substance not covered under subparagraph (A) that was a sub-
stance under such section as of December 1, 2018, and whose use the Sec-
retary of Transportation decides has a risk to transportation safety.’’.
(d) RETROACTIVITY.—The amendments made by this section to the Controlled Sub-
stances Act (21 U.S.C. 801 et seq.) are retroactive and shall apply to any offense
committed, case pending, conviction entered, and, in the case of a juvenile, any of-
fense committed, case pending, or adjudication of juvenile delinquency entered be-
fore, on, or after the date of enactment of this Act.
(e) EFFECT ON OTHER LAW.—Nothing in this subtitle shall affect or modify—
(1) the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.);
(2) section 351 of the Public Health Service Act (42 U.S.C. 262); or
(3) the authority of the Commissioner of Food and Drugs and the Secretary
of Health and Human Services—
(A) under—
(i) the Federal Food, Drug, and Cosmetic Act (21 U.S. 301 et seq.);
or
(ii) section 351 of the Public Health Service Act (42 U.S.C. 262); or
(B) to promulgate Federal regulations and guidelines that relate to prod-
ucts containing cannabis or cannabis-derived compounds under the Act de-
scribed in subparagraph (A)(i) or the section described in subparagraph
(A)(ii).
(f) PUBLIC MEETINGS.—Not later than one year after the date of enactment of this
Act, the Secretary of Health and Human Services, acting through the Commissioner
of Food and Drugs, shall hold not less than one public meeting to address the regu-
lation, safety, manufacturing, product quality, marketing, labeling, and sale of prod-
ucts containing cannabis or cannabis-derived compounds.
(g) SPECIAL RULE FOR FEDERAL EMPLOYEE TESTING.—Section 503 of the Supple-
mental Appropriations Act, 1987 (5 U.S.C. 7301 note) is amended by adding at the
end the following:
‘‘(h) MARIJUANA.—
‘‘(1) CONTINUED TESTING.—Notwithstanding the Marijuana Opportunity Rein-
vestment and Expungement Act and the amendments made thereby, the Sec-
retary of Health and Human Services may continue to include marijuana for
purposes of drug testing of Federal employees subject to this section, Executive
Order 12564, or other applicable Federal laws and orders.
‘‘(2) DEFINITION.—The term ‘marijuana’ has the meaning given to the term
‘marihuana’ in section 102 of the Controlled Substances Act (21 6 U.S.C. 802)
on the day before the date of enactment of the Marijuana Opportunity Reinvest-
ment and Expungement Act.’’.
(h) SPECIAL RULE FOR CERTAIN REGULATIONS.—
(1) IN GENERAL.—The amendments made by this section may not be construed
to abridge the authority of the Secretary of Transportation, or the Secretary of
the department in which the Coast Guard is operating, to regulate and screen
for the use of a controlled substance.
(2) CONTROLLED SUBSTANCE DEFINED.—In this subsection, the term ‘‘con-
trolled substance’’ means—
(A) any substance covered under section 102 of the Controlled Substances
Act (21 U.S.C. 802) on the day before the date of enactment of this Act; and
ctelli on DSK11ZRN23PROD with REPORTS
(B) any substance not covered under subparagraph (A) that was a sub-
stance covered under section 102 of the Controlled Substances Act (21
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
5
U.S.C. 802) on December 1, 2018, and specified by the Secretary of Trans-
portation.
SEC. 4. DEMOGRAPHIC DATA OF CANNABIS BUSINESS OWNERS AND EMPLOYEES.
(a) IN GENERAL.—The Bureau of Labor Statistics shall regularly compile, main-
tain, and make public data on the demographics of—
(1) individuals who are business owners in the cannabis industry; and
(2) individuals who are employed in the cannabis industry.
(b) DEMOGRAPHIC DATA.—The data collected under subsection (a) shall include
data regarding—
(1) age;
(2) certifications and licenses;
(3) disability status;
(4) educational attainment;
(5) family and marital status;
(6) nativity;
(7) race and Hispanic ethnicity;
(8) school enrollment;
(9) veteran status; and
(10) sex.
(c) CONFIDENTIALITY.—The name, address, and other identifying information of in-
dividuals employed in the cannabis industry shall be kept confidential by the Bu-
reau and not be made available to the public.
(d) DEFINITIONS.—In this section:
(1) CANNABIS.—The term ‘‘cannabis’’ means either marijuana or cannabis as
defined under the State law authorizing the sale or use of cannabis in which
the individual or entity is located.
(2) CANNABIS INDUSTRY.—The term ‘‘cannabis industry’’ means an individual
or entity that is licensed or permitted under a State or local law to engage in
commercial cannabis-related activity.
(3) OWNER.—The term ‘‘owner’’ means an individual or entity that is defined
as an owner under the State or local law where the individual or business is
licensed or permitted.
SEC. 5. CREATION OF OPPORTUNITY TRUST FUND AND IMPOSITION OF TAXES WITH RESPECT
TO CANNABIS PRODUCTS.
(a) ESTABLISHMENT OF TRUST FUND.—Subchapter A of chapter 98 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new section:
‘‘SEC. 9512. ESTABLISHMENT OF OPPORTUNITY TRUST FUND.
‘‘(a) CREATION OF TRUST FUND.—There is established in the Treasury of the
United States a trust fund to be known as the ‘Opportunity Trust Fund’ (referred
to in this section as the ‘Trust Fund’), consisting of such amounts as may be appro-
priated or credited to such fund as provided in this section or section 9602(b).
‘‘(b) TRANSFERS TO TRUST FUND.—There are hereby appropriated to the Trust
Fund amounts equivalent to the net revenues received in the Treasury from the
taxes imposed under chapter 56.
‘‘(c) EXPENDITURES.—Amounts in the Trust Fund shall be available, without fur-
ther appropriation, only as follows:
‘‘(1) 50 percent to the Attorney General to carry out section 3052(a) of part
OO of the Omnibus Crime Control and Safe Streets Act of 1968.
‘‘(2) 10 percent to the Attorney General to carry out section 3052(b) of part
OO of the Omnibus Crime Control and Safe Streets Act of 1968.
‘‘(3) 20 percent to the Administrator of the Small Business Administration to
carry out section 6(b)(1) of the Marijuana Opportunity Reinvestment and
Expungement Act.
‘‘(4) 20 percent to the Administrator of the Small Business Administration to
carry out section 6(b)(2) of the Marijuana Opportunity Reinvestment and
Expungement Act.’’.
(b) CANNABIS REVENUE AND REGULATION ACT.—Subtitle E of the Internal Rev-
enue Code of 1986 is amended by adding at the end the following new chapter:
ctelli on DSK11ZRN23PROD with REPORTS
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
6
‘‘CHAPTER 56—CANNABIS PRODUCTS
‘‘SUBCHAPTER A. TAX ON CANNABIS PRODUCTS
‘‘SUBCHAPTER B. OCCUPATIONAL TAX
‘‘SUBCHAPTER C. BOND AND PERMITS
‘‘SUBCHAPTER D. OPERATIONS
‘‘SUBCHAPTER E. PENALTIES
‘‘Subchapter A—Tax on Cannabis Products
‘‘Sec. 5901. Imposition of tax.
‘‘Sec. 5902. Definitions.
‘‘Sec. 5903. Liability and method of payment.
‘‘Sec. 5904. Exemption from tax; transfers in bond.
‘‘Sec. 5905. Credit, refund, or drawback of tax.
‘‘SEC. 5901. IMPOSITION OF TAX.
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed on any cannabis product pro-
duced in or imported into the United States a tax equal to—
‘‘(1) for any such product removed during the first 5 calendar years ending
after the date on which this chapter becomes effective, the applicable percent-
age of such product’s removal price, and
‘‘(2) for any product removed during any calendar year after the calendar
years described in paragraph (1), the applicable equivalent amount.
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of subsection (a)(1), the applicable
percentage shall be determined as follows:
‘‘(1) For any cannabis product removed during the first 2 calendar years end-
ing after the date on which this chapter becomes effective, 5 percent.
‘‘(2) For any cannabis product removed during the calendar year after the last
calendar year to which paragraph (1) applies, 6 percent.
‘‘(3) For any cannabis product removed during the calendar year after the cal-
endar year to which paragraph (2) applies, 7 percent.
‘‘(4) For any cannabis product removed during the calendar year after the cal-
endar year to which paragraph (3) applies, 8 percent.
‘‘(c) APPLICABLE EQUIVALENT AMOUNT.—
‘‘(1) IN GENERAL.—For purposes of subsection (a)(2), the term ‘applicable
equivalent amount’ means, with respect to any cannabis product removed dur-
ing any calendar year, an amount equal to—
‘‘(A) in the case of any cannabis product not described in subparagraph
(B), the product of the applicable rate per ounce multiplied by the number
of ounces of such product (and a proportionate tax at the like rate on all
fractional parts of an ounce of such product), and
‘‘(B) in the case of any THC-measurable cannabis product, the product of
the applicable rate per gram multiplied by the number of grams of
tetrahydrocannabinol in such product (and a proportionate tax at the like
rate on all fractional parts of a gram of tetrahydrocannabinol in such prod-
uct).
‘‘(2) APPLICABLE RATES.—
‘‘(A) IN GENERAL.—For purposes of paragraph (1)(A), the term ‘applicable
rate per ounce’ means, with respect to any cannabis product removed dur-
ing any calendar year, 8 percent of the prevailing sales price of cannabis
flowers sold in the United States during the 12-month period ending one
calendar quarter before such calendar year, expressed on a per ounce basis,
as determined by the Secretary.
‘‘(B) THC-MEASURABLE CANNABIS PRODUCTS.—For purposes of paragraph
(1)(B), the term ‘applicable rate per gram’ means, with respect to any can-
nabis product removed during any calendar year, 8 percent of the pre-
vailing sales price of tetrahydrocannabinol sold in the United States during
the 12-month period ending one calendar quarter before such calendar year,
expressed on a per gram basis, as determined by the Secretary.
‘‘(d) TIME OF ATTACHMENT ON CANNABIS PRODUCTS.—The tax under this section
shall attach to any cannabis product as soon as such product is in existence as such,
whether it be subsequently separated or transferred into any other substance, either
in the process of original production or by any subsequent process.
‘‘SEC. 5902. DEFINITIONS.
‘‘(a) DEFINITIONS RELATED TO CANNABIS PRODUCTS.—For purposes of this chap-
ctelli on DSK11ZRN23PROD with REPORTS
ter—
‘‘(1) CANNABIS PRODUCT.—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
7
‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), the term ‘can-
nabis product’ means any article which contains (or consists of) cannabis.
‘‘(B) EXCEPTIONS.—The term ‘cannabis product’ shall not include an FDA-
approved article or industrial hemp.
‘‘(C) FDA-APPROVED ARTICLE.—The term ‘FDA-approved article’ means
any article if the producer or importer thereof demonstrates to the satisfac-
tion of the Secretary of Health and Human Services that such article is—
‘‘(i) a drug—
‘‘(I) that is approved under section 505 of the Federal Food,
Drug, and Cosmetic Act or licensed under section 351 of the Public
Health Service Act, or
‘‘(II) for which an investigational use exemption has been author-
ized under section 505(i) of the Federal Food, Drug, and Cosmetic
Act or under section 351(a) of the Public Health Service Act, or
‘‘(ii) a combination product (as described in section 503(g) of the Fed-
eral Food, Drug, and Cosmetic Act), the constituent parts of which were
approved or cleared under section 505, 510(k), or 515 of such Act.
‘‘(D) INDUSTRIAL HEMP.—The term ‘industrial hemp’ means the plant
Cannabis sativa L. and any part of such plant, whether growing or not,
with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 per-
cent on a dry weight basis.
‘‘(2) THC-MEASURABLE CANNABIS PRODUCT.—The term ‘THC-measurable can-
nabis product’ means any cannabis product—
‘‘(A) with respect to which the Secretary has made a determination that
the amount of tetrahydrocannabinol in such product can be measured with
a high degree of accuracy, or
‘‘(B) which is not cannabis flower and the concentration of
tetrahydrocannabinol in which is significantly higher than the average such
concentration in cannabis flower.
‘‘(3) CANNABIS.—The term ‘cannabis’ has the meaning given such term under
section 102(16) of the Controlled Substances Act (21 U.S.C. 802(16)).
‘‘(b) DEFINITIONS RELATED TO CANNABIS ENTERPRISES.—For purposes of this chap-
ter—
‘‘(1) CANNABIS ENTERPRISE.—The term ‘cannabis enterprise’ means a pro-
ducer, importer, or export warehouse proprietor.
‘‘(2) PRODUCER.—
‘‘(A) IN GENERAL.—The term ‘producer’ means any person who plants, cul-
tivates, harvests, grows, manufactures, produces, compounds, converts,
processes, prepares, or packages any cannabis product.
‘‘(B) PERSONAL USE EXCEPTION.—Subject to regulation prescribed by the
Secretary, the term ‘producer’ shall not include any individual otherwise de-
scribed in subparagraph (A) if the only cannabis product described in such
subparagraph with respect to such individual is for personal or family use
and not for sale.
‘‘(3) IMPORTER.—The term ‘importer’ means any person who—
‘‘(A) is in the United States and to whom non-tax-paid cannabis products,
produced in a foreign country or a possession of the United States, are
shipped or consigned,
‘‘(B) removes cannabis products for sale or consumption in the United
States from a customs bonded warehouse, or
‘‘(C) smuggles or otherwise unlawfully brings any cannabis product into
the United States.
‘‘(4) EXPORT WAREHOUSE PROPRIETOR.—
‘‘(A) IN GENERAL.—The term ‘export warehouse proprietor’ means any
person who operates an export warehouse.
‘‘(B) EXPORT WAREHOUSE.—The term ‘export warehouse’ means a bonded
internal revenue warehouse for the storage of cannabis products, upon
which the internal revenue tax has not been paid—
‘‘(i) for subsequent shipment to a foreign country or a possession of
the United States, or
‘‘(ii) for consumption beyond the jurisdiction of the internal revenue
laws of the United States.
‘‘(5) CANNABIS PRODUCTION FACILITY.—The term ‘cannabis production facility’
means an establishment which is qualified under subchapter C to perform any
operation for which such qualification is required under such subchapter.
‘‘(c) OTHER DEFINITIONS.—For purposes of this chapter—
‘‘(1) PRODUCE.—The term ‘produce’ includes any activity described in sub-
ctelli on DSK11ZRN23PROD with REPORTS
section (b)(2)(A).
‘‘(2) REMOVAL; REMOVE.—The terms ‘removal’ or ‘remove’ means—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
8
‘‘(A) the transfer of cannabis products from the premises of a producer (or
the transfer of such products from the bonded premises of a producer to a
non-bonded premises of such producer),
‘‘(B) release of such products from customs custody, or
‘‘(C) smuggling or other unlawful importation of such products into the
United States.
‘‘(3) REMOVAL PRICE.—The term ‘removal price’ means—
‘‘(A) except as otherwise provided in this paragraph, the price for which
the cannabis product is sold in the sale which occurs in connection with the
removal of such product,
‘‘(B) in the case of any such sale which is described in section 5903(c),
the price determined under such section, and
‘‘(C) if there is no sale which occurs in connection with such removal, the
price which would be determined under section 5903(c) if such product were
sold at a price which cannot be determined.
‘‘SEC. 5903. LIABILITY AND METHOD OF PAYMENT.
‘‘(a) LIABILITY FOR TAX.—
‘‘(1) ORIGINAL LIABILITY.—The producer or importer of any cannabis product
shall be liable for the taxes imposed thereon by section 5901.
‘‘(2) TRANSFER OF LIABILITY.—
‘‘(A) IN GENERAL.—When cannabis products are transferred, without pay-
ment of tax, pursuant to subsection (b) or (c) of section 5904—
‘‘(i) except as provided in clause (ii), the transferee shall become lia-
ble for the tax upon receipt by the transferee of such articles, and the
transferor shall thereupon be relieved of their liability for such tax, and
‘‘(ii) in the case of cannabis products which are released in bond from
customs custody for transfer to the bonded premises of a producer, the
transferee shall become liable for the tax on such articles upon release
from customs custody, and the importer shall thereupon be relieved of
their liability for such tax.
‘‘(B) RETURNED TO BOND.—All provisions of this chapter applicable to can-
nabis products in bond shall be applicable to such articles returned to bond
upon withdrawal from the market or returned to bond after previous re-
moval for a tax-exempt purpose.
‘‘(b) METHOD OF PAYMENT OF TAX.—
‘‘(1) IN GENERAL.—
‘‘(A) TAXES PAID ON BASIS OF RETURN.—The taxes imposed by section 5901
shall be paid on the basis of return. The Secretary shall, by regulations,
prescribe the period or the event to be covered by such return and the infor-
mation to be furnished on such return.
‘‘(B) APPLICATION TO TRANSFEREES.—In the case of any transfer to which
subsection (a)(2)(A) applies, the tax under section 5901 on the transferee
shall (if not otherwise relieved by reason of a subsequent transfer to which
such subsection applies) be imposed with respect to the removal of the can-
nabis product from the bonded premises of the transferee.
‘‘(C) 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 bonds, and upon compliance with such re-
quirements, as the Secretary may prescribe for the protection of the rev-
enue. The Secretary may, by regulations, require payment of tax on the
basis of a return prior to removal of the cannabis products where a person
defaults in the postponed payment of tax on the basis of a return under this
subsection or regulations prescribed thereunder.
‘‘(D) ADMINISTRATION AND PENALTIES.—All administrative and penalty
provisions of this title, insofar as applicable, shall apply to any tax imposed
by section 5901.
‘‘(2) TIME FOR PAYMENT OF TAXES.—
‘‘(A) IN GENERAL.—Except as otherwise provided in this paragraph, in the
case of taxes on cannabis products removed during any semimonthly period
under bond for deferred payment of tax, the last day for payment of such
taxes shall be the 14th day after the last day of such semimonthly period.
‘‘(B) IMPORTED ARTICLES.—In the case of cannabis products which are im-
ported into the United States, the following provisions shall apply:
‘‘(i) IN GENERAL.—The last day for payment of tax shall be the 14th
day after the last day of the semimonthly period during which the arti-
cle is entered into the customs territory of the United States.
ctelli on DSK11ZRN23PROD with REPORTS
‘‘(ii) SPECIAL RULE FOR ENTRY OF WAREHOUSING.—Except as provided
in clause (iv), in the case of an entry for warehousing, the last day for
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
9
payment of tax shall not be later than the 14th day after the last day
of the semimonthly period during which the article is removed from the
first such warehouse.
‘‘(iii) FOREIGN TRADE ZONES.—Except as provided in clause (iv) and
in regulations prescribed by the Secretary, articles brought into a for-
eign trade zone shall, notwithstanding any other provision of law, be
treated for purposes of this subsection as if such zone were a single cus-
toms warehouse.
‘‘(iv) EXCEPTION FOR ARTICLES DESTINED FOR EXPORT.—Clauses (ii)
and (iii) shall not apply to any article which is shown to the satisfaction
of the Secretary to be destined for export.
‘‘(C) CANNABIS PRODUCTS BROUGHT INTO THE UNITED STATES FROM PUERTO
RICO.—In the case of cannabis products which are brought into the United
States from Puerto Rico and subject to tax under section 7652, the last day
for payment of tax shall be the 14th day after the last day of the semi-
monthly period during which the article is brought into the United States.
‘‘(D) SPECIAL RULE WHERE DUE DATE FALLS ON SATURDAY, SUNDAY, OR
HOLIDAY.—Notwithstanding section 7503, if, but for this subparagraph, the
due date under this paragraph would fall on a Saturday, Sunday, or a legal
holiday (as defined in section 7503), such due date shall be the immediately
preceding day which is not a Saturday, Sunday, or such a holiday.
‘‘(E) SPECIAL RULE FOR UNLAWFULLY PRODUCED CANNABIS PRODUCTS.—In
the case of any cannabis products produced in the United States at any
place other than the premises of a producer that has filed the bond and ob-
tained the permit required under this chapter, tax shall be due and payable
immediately upon production.
‘‘(3) PAYMENT BY ELECTRONIC FUND TRANSFER.—Any person who in any 12-
month period, ending December 31, was liable for a gross amount equal to or
exceeding $5,000,000 in taxes imposed on cannabis products by section 5901 (or
section 7652) shall pay such taxes during the succeeding calendar year by elec-
tronic fund transfer (as defined in section 5061(e)(2)) to a Federal Reserve
Bank. Rules similar to the rules of section 5061(e)(3) shall apply to the
$5,000,000 amount specified in the preceding sentence.
‘‘(c) DETERMINATION OF PRICE.—
‘‘(1) CONSTRUCTIVE SALE PRICE.—
‘‘(A) IN GENERAL.—If an article is sold directly to consumers, sold on con-
signment, or sold (otherwise than through an arm’s length transaction) at
less than the fair market price, or if the price for which the article sold can-
not be determined, the tax under section 5901(a) shall be computed on the
price for which such articles are sold, in the ordinary course of trade, by
producers thereof, as determined by the Secretary.
‘‘(B) ARM’S LENGTH.—
‘‘(i) IN GENERAL.—For purposes of this section, a sale is considered to
be made under circumstances otherwise than at arm’s length if—
‘‘(I) the parties are members of the same controlled group,
whether or not such control is actually exercised to influence the
sale price,
‘‘(II) the parties are members of a family, as defined in section
267(c)(4), or
‘‘(III) the sale is made pursuant to special arrangements between
a producer and a purchaser.
‘‘(ii) CONTROLLED GROUPS.—
‘‘(I) IN GENERAL.—The term ‘controlled group’ has the meaning
given to such term by subsection (a) of section 1563, except that
‘more than 50 percent’ shall be substituted for ‘at least 80 percent’
each place it appears in such subsection.
‘‘(II) CONTROLLED GROUPS WHICH INCLUDE NONINCORPORATED
PERSONS.—Under regulations prescribed by the Secretary, prin-
ciples similar to the principles of subclause (I) shall apply to a
group of persons under common control where one or more of such
persons is not a corporation.
‘‘(2) CONTAINERS, PACKING AND TRANSPORTATION CHARGES.—In determining,
for the purposes of this chapter, the price for which an article is sold, there
shall be included any charge for coverings and containers of whatever nature,
and any charge incident to placing the article in condition packed ready for
shipment, but there shall be excluded the amount of tax imposed by this chap-
ctelli on DSK11ZRN23PROD with REPORTS
ter, whether or not stated as a separate charge. A transportation, delivery, in-
surance, installation, or other charge (not required by the preceding sentence
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00009 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
10
to be included) shall be excluded from the price only if the amount thereof is
established to the satisfaction of the Secretary in accordance with regulations.
‘‘(3) DETERMINATION OF APPLICABLE EQUIVALENT AMOUNTS.—Paragraphs (1)
and (2) shall apply for purposes of section 5901(c) only to the extent that the
Secretary determines appropriate.
‘‘(d) PARTIAL PAYMENTS AND INSTALLMENT ACCOUNTS.—
‘‘(1) PARTIAL PAYMENTS.—In the case of—
‘‘(A) a contract for the sale of an article wherein it is provided that the
price shall be paid by installments and title to the article sold does not pass
until a future date notwithstanding partial payment by installments,
‘‘(B) a conditional sale, or
‘‘(C) a chattel mortgage arrangement wherein it is provided that the sales
price shall be paid in installments,
there shall be paid upon each payment with respect to the article a percentage
of such payment equal to the rate of tax in effect on the date such payment
is due.
‘‘(2) SALES OF INSTALLMENT ACCOUNTS.—If installment accounts, with respect
to payments on which tax is being computed as provided in paragraph (1), are
sold or otherwise disposed of, then paragraph (1) shall not apply with respect
to any subsequent payments on such accounts (other than subsequent payments
on returned accounts with respect to which credit or refund is allowable by rea-
son of section 6416(b)(5)), but instead—
‘‘(A) there shall be paid an amount equal to the difference between—
‘‘(i) the tax previously paid on the payments on such installment ac-
counts, and
‘‘(ii) the total tax which would be payable if such installment ac-
counts had not been sold or otherwise disposed of (computed as pro-
vided in paragraph (1)), except that
‘‘(B) if any such sale is pursuant to the order of, or subject to the approval
of, a court of competent jurisdiction in a bankruptcy or insolvency pro-
ceeding, the amount computed under subparagraph (A) shall not exceed the
sum of the amounts computed by multiplying—
‘‘(i) the proportionate share of the amount for which such accounts
are sold which is allocable to each unpaid installment payment, by
‘‘(ii) the rate of tax under this chapter in effect on the date such un-
paid installment payment is or was due.
The sum of the amounts payable under this subsection in respect of the sale
of any article shall not exceed the total tax.
‘‘SEC. 5904. EXEMPTION FROM TAX; TRANSFERS IN BOND.
‘‘(a) EXEMPTION FROM TAX.—Cannabis products on which the internal revenue tax
has not been paid or determined may, subject to such regulations as the Secretary
shall prescribe, be withdrawn from the bonded premises of any producer in ap-
proved containers free of tax and not for resale for use—
‘‘(1) exclusively in scientific research by a laboratory,
‘‘(2) by a proprietor of a cannabis production facility in research, development,
or testing (other than consumer testing or other market analysis) of processes,
systems, materials, or equipment, relating to cannabis or cannabis operations,
under such limitations and conditions as to quantities, use, and accountability
as the Secretary may by regulations require for the protection of the revenue,
or
‘‘(3) by the United States or any governmental agency thereof, any State, any
political subdivision of a State, or the District of Columbia, for nonconsumption
purposes.
‘‘(b) CANNABIS PRODUCTS TRANSFERRED OR REMOVED IN BOND FROM DOMESTIC
FACTORIES AND EXPORT WAREHOUSES.—
‘‘(1) IN GENERAL.—Subject to such regulations and under such bonds as the
Secretary shall prescribe, a producer or export warehouse proprietor may trans-
fer cannabis products, without payment of tax, to the bonded premises of an-
other producer or export warehouse proprietor, or remove such articles, without
payment of tax, for shipment to a foreign country or a possession of the United
States, or for consumption beyond the jurisdiction of the internal revenue laws
of the United States.
‘‘(2) LABELING.—Cannabis products may not be transferred or removed under
this subsection unless such products bear such marks, labels, or notices as the
Secretary shall by regulations prescribe.
‘‘(c) CANNABIS PRODUCTS RELEASED IN BOND FROM CUSTOMS CUSTODY.—Cannabis
ctelli on DSK11ZRN23PROD with REPORTS
products imported or brought into the United States may be released from customs
custody, without payment of tax, for delivery to a producer or export warehouse pro-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
11
prietor if such articles are not put up in packages, in accordance with such regula-
tions and under such bond as the Secretary shall prescribe.
‘‘(d) CANNABIS PRODUCTS EXPORTED AND RETURNED.—Cannabis products classifi-
able under item 9801.00.10 of the Harmonized Tariff Schedule of the United States
(relating to duty on certain articles previously exported and returned), as in effect
on the date of the enactment of the Marijuana Opportunity Reinvestment and
Expungement Act, may be released from customs custody, without payment of that
part of the duty attributable to the internal revenue tax for delivery to the original
producer of such cannabis products or to the export warehouse proprietor authorized
by such producer to receive such products, in accordance with such regulations and
under such bond as the Secretary shall prescribe. Upon such release such products
shall be subject to this chapter as if they had not been exported or otherwise re-
moved from internal revenue bond.
‘‘SEC. 5905. CREDIT, REFUND, OR DRAWBACK OF TAX.
‘‘(a) CREDIT OR REFUND.—
‘‘(1) IN GENERAL.—Credit or refund of any tax imposed by this chapter or sec-
tion 7652 shall be allowed or made (without interest) to the cannabis enterprise
on proof satisfactory to the Secretary that the claimant cannabis enterprise has
paid the tax on—
‘‘(A) cannabis products withdrawn from the market by the claimant, or
‘‘(B) such products lost (otherwise than by theft) or destroyed, by fire, cas-
ualty, or act of God, while in the possession or ownership of the claimant.
‘‘(2) CANNABIS PRODUCTS LOST OR DESTROYED IN BOND.—
‘‘(A) EXTENT OF LOSS ALLOWANCE.—No tax shall be collected in respect of
cannabis products lost or destroyed while in bond, except that such tax
shall be collected—
‘‘(i) in the case of loss by theft, unless the Secretary finds that the
theft occurred without connivance, collusion, fraud, or negligence on the
part of the proprietor of the cannabis production facility, owner, con-
signor, consignee, bailee, or carrier, or their employees or agents,
‘‘(ii) in the case of voluntary destruction, unless such destruction is
carried out as provided in paragraph (3), and
‘‘(iii) in the case of an unexplained shortage of cannabis products.
‘‘(B) PROOF OF LOSS.—In any case in which cannabis products are lost or
destroyed, whether by theft or otherwise, the Secretary may require the
proprietor of a cannabis production facility or other person liable for the tax
to file a claim for relief from the tax and submit proof as to the cause of
such loss. In every case where it appears that the loss was by theft, the
burden shall be upon the proprietor of the cannabis production facility or
other person responsible for the tax under section 5901 to establish to the
satisfaction of the Secretary that such loss did not occur as the result of
connivance, collusion, fraud, or negligence on the part of the proprietor of
the cannabis production facility, owner, consignor, consignee, bailee, or car-
rier, or their employees or agents.
‘‘(C) REFUND OF TAX.—In any case where the tax would not be collectible
by virtue of subparagraph (A), but such tax has been paid, the Secretary
shall refund such tax.
‘‘(D) LIMITATIONS.—Except as provided in subparagraph (E), no tax shall
be abated, remitted, credited, or refunded under this paragraph where the
loss occurred after the tax was determined. The abatement, remission, cred-
it, or refund of taxes provided for by subparagraphs (A) and (C) in the case
of loss of cannabis products by theft shall only be allowed to the extent that
the claimant is not indemnified against or recompensed in respect of the
tax for such loss.
‘‘(E) APPLICABILITY.—The provisions of this paragraph shall extend to and
apply in respect of cannabis products lost after the tax was determined and
before completion of the physical removal of the cannabis products from the
bonded premises.
‘‘(3) VOLUNTARY DESTRUCTION.—The proprietor of a cannabis production facil-
ity or other persons liable for the tax imposed by this chapter or by section 7652
with respect to any cannabis product in bond may voluntarily destroy such
products, but only if such destruction is under such supervision and under such
regulations as the Secretary may prescribe.
‘‘(4) LIMITATION.—Any claim for credit or refund of tax under this subsection
shall be filed within 6 months after the date of the withdrawal from the market,
loss, or destruction of the products to which the claim relates, and shall be in
ctelli on DSK11ZRN23PROD with REPORTS
such form and contain such information as the Secretary shall by regulations
prescribe.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00011 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
12
‘‘(b) DRAWBACK OF TAX.—There shall be an allowance of drawback of tax paid on
cannabis products, when shipped from the United States, in accordance with such
regulations and upon the filing of such bond as the Secretary shall prescribe.
‘‘Subchapter B—Occupational Tax
‘‘Sec. 5911. Imposition and rate of tax.
‘‘Sec. 5912. Payment of tax.
‘‘Sec. 5913. Provisions relating to liability for occupational taxes.
‘‘Sec. 5914. Application to State laws.
‘‘SEC. 5911. IMPOSITION AND RATE OF TAX.
‘‘(a) IN GENERAL.—Any person engaged in business as a producer or an export
warehouse proprietor shall pay a tax of $1,000 per year (referred to in this sub-
chapter as an ‘occupational tax’) in respect of each premises at which such business
is carried on.
‘‘(b) 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 $5,000, or imprisoned not more than 2 years, or
both, for each such offense.
‘‘SEC. 5912. PAYMENT OF TAX.
‘‘(a) CONDITION PRECEDENT TO CARRYING ON BUSINESS.—No person shall be en-
gaged in or carry on any trade or business subject to the occupational tax until such
person has paid such tax.
‘‘(b) COMPUTATION.—
‘‘(1) IN GENERAL.—The occupational tax shall be imposed—
‘‘(A) as of on the first day of July in each year, or
‘‘(B) on commencing any trade or business on which such tax is imposed.
‘‘(2) PERIOD.—In the case of a tax imposed under subparagraph (A) of para-
graph (1), the occupational tax shall be reckoned for 1 year, and in the case of
subparagraph (B) of such paragraph, it shall be reckoned proportionately, from
the first day of the month in which the liability to such tax commenced, to and
including the 30th day of June following.
‘‘(c) METHOD OF PAYMENT.—
‘‘(1) PAYMENT BY RETURN.—The occupational tax shall be paid on the basis
of a return under such regulations as the Secretary shall prescribe.
‘‘(2) STAMP DENOTING PAYMENT OF TAX.—After receiving a properly executed
return and remittance of any occupational tax, the Secretary shall issue to the
taxpayer an appropriate stamp as a receipt denoting payment of the tax. This
paragraph shall not apply in the case of a return covering liability for a past
period.
‘‘SEC. 5913. PROVISIONS RELATING TO LIABILITY FOR OCCUPATIONAL TAXES.
‘‘(a) PARTNERS.—Any number of persons doing business in partnership at any one
place shall be required to pay a single occupational tax.
‘‘(b) 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 time, except as otherwise pro-
vided in this subchapter, the occupational tax shall be paid for each according to
the rates severally prescribed.
‘‘(c) BUSINESSES IN MORE THAN ONE LOCATION.—
‘‘(1) LIABILITY FOR TAX.—The payment of the occupational tax shall not ex-
empt from an additional occupational tax the person carrying on a trade or
business in any other place than that stated in the records of the Internal Rev-
enue Service.
‘‘(2) STORAGE.—Nothing contained in paragraph (1) shall require imposition
of an occupational tax for the storage of cannabis products at a location other
than the place where such products are sold or offered for sale.
‘‘(3) PLACE.—
‘‘(A) IN GENERAL.—For purposes of this section, the term ‘place’ means
the entire office, plant or area of the business in any one location under
the same proprietorship.
‘‘(B) DIVISIONS.—For purposes of this paragraph, any passageways,
streets, highways, rail crossings, waterways, or partitions dividing the
premises shall not be deemed sufficient separation to require an additional
occupational tax, if the various divisions are otherwise contiguous.
‘‘(d) DEATH OR CHANGE OF LOCATION.—
‘‘(1) IN GENERAL.—In addition to the person who has paid the occupational tax
ctelli on DSK11ZRN23PROD with REPORTS
for the carrying on of any business at any place, any person described in para-
graph (2) may secure the right to carry on, without incurring any additional oc-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00012 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
13
cupational tax, the same business at the same place for the remainder of the
taxable period for which the occupational tax was paid.
‘‘(2) ELIGIBLE PERSONS.—The persons described in this paragraph are the fol-
lowing:
‘‘(A) The surviving spouse or child, or executor or administrator or other
legal representative, of a deceased taxpayer.
‘‘(B) A husband or wife succeeding to the business of his or her living
spouse.
‘‘(C) A receiver or trustee in bankruptcy, or an assignee for benefit of
creditors.
‘‘(D) The partner or partners remaining after death or withdrawal of a
member of a partnership.
‘‘(3) 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 busi-
ness, such person may secure the right to carry on, without incurring additional
occupational tax, the same business at the new location for the remainder of
the taxable period for which the occupational tax was paid. To secure the right
to carry on the business without incurring additional occupational tax, the suc-
cessor, or the person relocating their business, must register the succession or
relocation with the Secretary in accordance with regulations prescribed by the
Secretary.
‘‘(e) FEDERAL AGENCIES OR INSTRUMENTALITIES.—Any tax imposed by this sub-
chapter shall apply to any agency or instrumentality of the United States unless
such agency or instrumentality is granted by statute a specific exemption from such
tax.
‘‘SEC. 5914. 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—
‘‘(1) exempt any person from any penalty or punishment provided by the laws
of any State for carrying on such trade or business within such State, or in any
manner to authorize the commencement or continuance of such trade or busi-
ness contrary to the laws of such State or in places prohibited by municipal law,
or
‘‘(2) prohibit any State from placing a duty or tax on the same trade or busi-
ness, for State or other purposes.
‘‘Subchapter C—Bond and Permits
‘‘Sec. 5921. Establishment and bond.
‘‘Sec. 5922. Application for permit.
‘‘Sec. 5923. Permit.
‘‘SEC. 5921. ESTABLISHMENT AND BOND.
‘‘(a) PROHIBITION ON PRODUCTION OUTSIDE OF BONDED CANNABIS PRODUCTION FA-
CILITY.—
‘‘(1) IN GENERAL.—Except as authorized by the Secretary or on the bonded
premises of a cannabis production facility duly authorized to produce cannabis
products according to law, no cannabis product may planted, cultivated, har-
vested, grown, manufactured, produced, compounded, converted, processed, pre-
pared, or packaged in any building or on any premises.
‘‘(2) AUTHORIZED PRODUCERS ONLY.—No person other than a producer which
has filed the bond required under subsection (b) and received a permit described
in section 5923 may produce any cannabis product.
‘‘(3) PERSONAL USE EXCEPTION.—This subsection shall not apply with respect
the activities of an individual who is not treated as a producer by reason of sec-
tion 5902(b)(2)(B).
‘‘(b) BOND.—
‘‘(1) WHEN REQUIRED.—Every person, before commencing business as a pro-
ducer or an export warehouse proprietor, shall file such bond, conditioned upon
compliance with this chapter and regulations issued thereunder, in such form,
amount, and manner as the Secretary shall by regulation prescribe. A new or
additional bond may be required whenever the Secretary considers such action
necessary for the protection of the revenue.
‘‘(2) APPROVAL OR DISAPPROVAL.—No person shall engage in such business
until he receives notice of approval of such bond. A bond may be disapproved,
upon notice to the principal on the bond, if the Secretary determines that the
bond is not adequate to protect the revenue.
‘‘(3) CANCELLATION.—Any bond filed hereunder may be canceled, upon notice
ctelli on DSK11ZRN23PROD with REPORTS
to the principal on the bond, whenever the Secretary determines that the bond
no longer adequately protects the revenue.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
14
‘‘SEC. 5922. APPLICATION FOR PERMIT.
‘‘(a) IN GENERAL.—Every person, before commencing business as a cannabis enter-
prise, and at such other time as the Secretary shall by regulation prescribe, shall
make application for the permit provided for in section 5923. The application shall
be in such form as the Secretary shall prescribe and shall set forth, truthfully and
accurately, the information called for on the form. Such application may be rejected
and the permit denied if the Secretary, after notice and opportunity for hearing,
finds that—
‘‘(1) the premises on which it is proposed to conduct the cannabis enterprise
are not adequate to protect the revenue, or
‘‘(2) such person (including, in the case of a corporation, any officer, director,
or principal stockholder and, in the case of a partnership, a partner) has failed
to disclose any material information required or made any material false state-
ment in the application therefor.
‘‘SEC. 5923. PERMIT.
‘‘(a) ISSUANCE.—A person shall not engage in business as a cannabis enterprise
without a permit to engage in such business. Such permit, conditioned upon compli-
ance with this chapter and regulations issued thereunder, shall be issued in such
form and in such manner as the Secretary shall by regulation prescribe. A new per-
mit may be required at such other time as the Secretary shall by regulation pre-
scribe.
‘‘(b) SUSPENSION OR REVOCATION.—
‘‘(1) SHOW CAUSE HEARING.—If the Secretary has reason to believe that any
person holding a permit—
‘‘(A) has not in good faith complied with this chapter, or with any other
provision of this title involving intent to defraud,
‘‘(B) has violated the conditions of such permit,
‘‘(C) has failed to disclose any material information required or made any
material false statement in the application for such permit, or
‘‘(D) has failed to maintain their premises in such manner as to protect
the revenue,
the Secretary shall issue an order, stating the facts charged, citing such person
to show cause why their permit should not be suspended or revoked.
‘‘(2) ACTION FOLLOWING HEARING.—If, after hearing, the Secretary finds that
such person has not shown cause why their permit should not be suspended or
revoked, such permit shall be suspended for such period as the Secretary deems
proper or shall be revoked.
‘‘(c) INFORMATION REPORTING.—The Secretary may require—
‘‘(1) information reporting by any person issued a permit under this section,
and
‘‘(2) information reporting by such other persons as the Secretary deems nec-
essary to carry out this chapter.
‘‘(d) INSPECTION OR DISCLOSURE OF INFORMATION.—For rules relating to inspec-
tion and disclosure of returns and return information, see section 6103(o).
‘‘Subchapter D—Operations
‘‘Sec. 5931. Inventories, reports, and records.
‘‘Sec. 5932. Packaging and labeling.
‘‘Sec. 5933. Purchase, receipt, possession, or sale of cannabis products after removal.
‘‘Sec. 5934. Restrictions relating to marks, labels, notices, and packages.
‘‘Sec. 5935. Restriction on importation of previously exported cannabis products.
‘‘SEC. 5931. INVENTORIES, REPORTS, AND RECORDS.
‘‘Every cannabis enterprise shall—
‘‘(1) make a true and accurate inventory at the time of commencing business,
at the time of concluding business, and at such other times, in such manner
and form, and to include such items, as the Secretary shall by regulation pre-
scribe, with such inventories to be subject to verification by any internal rev-
enue officer,
‘‘(2) make reports containing such information, in such form, at such times,
and for such periods as the Secretary shall by regulation prescribe, and
‘‘(3) keep such records in such manner as the Secretary shall by regulation
prescribe, with such records to be available for inspection by any internal rev-
enue officer during business hours.
‘‘SEC. 5932. PACKAGING AND LABELING.
ctelli on DSK11ZRN23PROD with REPORTS
‘‘(a) PACKAGES.—All cannabis products shall, before removal, be put up in such
packages as the Secretary shall by regulation prescribe.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00014 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
15
‘‘(b) MARKS, LABELS, AND NOTICES.—Every package of cannabis products shall, be-
fore removal, bear the marks, labels, and notices if any, that the Secretary by regu-
lation prescribes.
‘‘(c) LOTTERY FEATURES.—No certificate, coupon, or other device purporting to be
or to represent a ticket, chance, share, or an interest in, or dependent on, the event
of a lottery shall be contained in, attached to, or stamped, marked, written, or print-
ed on any package of cannabis products.
‘‘(d) INDECENT OR IMMORAL MATERIAL PROHIBITED.—No indecent or immoral pic-
ture, print, or representation shall be contained in, attached to, or stamped, marked,
written, or printed on any package of cannabis products.
‘‘(e) EXCEPTIONS.—Subject to regulations prescribed by the Secretary, cannabis
products may be exempted from subsections (a) and (b) if such products are—
‘‘(1) for experimental purposes, or
‘‘(2) transferred to the bonded premises of another producer or export ware-
house proprietor or released in bond from customs custody for delivery to a pro-
ducer.
‘‘SEC. 5933. PURCHASE, RECEIPT, POSSESSION, OR SALE OF CANNABIS PRODUCTS AFTER RE-
MOVAL.
‘‘(a) RESTRICTION.—No person shall—
‘‘(1) with intent to defraud the United States, purchase, receive, possess, offer
for sale, or sell or otherwise dispose of, after removal, any cannabis products—
‘‘(A) upon which the tax has not been paid or determined in the manner
and at the time prescribed by this chapter or regulations thereunder, or
‘‘(B) which, after removal without payment of tax pursuant to section
5904(a), have been diverted from the applicable purpose or use specified in
that section,
‘‘(2) with intent to defraud the United States, purchase, receive, possess, offer
for sale, or sell or otherwise dispose of, after removal, any cannabis products
which are not put up in packages as required under section 5932 or which are
put up in packages not bearing the marks, labels, and notices, as required
under such section, or
‘‘(3) otherwise than with intent to defraud the United States, purchase, re-
ceive, possess, offer for sale, or sell or otherwise dispose of, after removal, any
cannabis products which are not put up in packages as required under section
5932 or which are put up in packages not bearing the marks, labels, and no-
tices, as required under such section.
‘‘(b) EXCEPTION.—Paragraph (3) of subsection (a) shall not prevent the sale or de-
livery of cannabis products directly to consumers from proper packages, nor apply
to such articles when so sold or delivered.
‘‘(c) LIABILITY TO TAX.—Any person who possesses cannabis products in violation
of paragraph (1) or (2) of subsection (a) shall be liable for a tax equal to the tax
on such articles.
‘‘SEC. 5934. RESTRICTIONS RELATING TO MARKS, LABELS, NOTICES, AND PACKAGES.
‘‘No person shall, with intent to defraud the United States, destroy, obliterate, or
detach any mark, label, or notice prescribed or authorized, by this chapter or regula-
tions thereunder, to appear on, or be affixed to, any package of cannabis products
before such package is emptied.
‘‘SEC. 5935. RESTRICTION ON IMPORTATION OF PREVIOUSLY EXPORTED CANNABIS PROD-
UCTS.
‘‘(a) EXPORT LABELED CANNABIS PRODUCTS.—
‘‘(1) IN GENERAL.—Cannabis products produced in the United States and la-
beled for exportation under this chapter—
‘‘(A) may be transferred to or removed from the premises of a producer
or an export warehouse proprietor only if such articles are being trans-
ferred or removed without tax in accordance with section 5904,
‘‘(B) may be imported or brought into the United States, after their expor-
tation, only if such articles either are eligible to be released from customs
custody with the partial duty exemption provided in section 5904(d) or are
returned to the original producer of such article as provided in section
5904(c), and
‘‘(C) may not be sold or held for sale for domestic consumption in the
United States unless such articles are removed from their export packaging
and repackaged by the original producer into new packaging that does not
contain an export label.
‘‘(2) ALTERATIONS BY PERSONS OTHER THAN ORIGINAL PRODUCER.—This section
ctelli on DSK11ZRN23PROD with REPORTS
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
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00015 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
16
by a person other than the original producer so as to remove or conceal or at-
tempt to remove or conceal (including by the placement of a sticker over) any
export label.
‘‘(3) EXPORTS INCLUDE SHIPMENTS TO PUERTO RICO.—For purposes of this sec-
tion, section 5904(d), section 5941, and such other provisions as the Secretary
may specify by regulations, references to exportation shall be treated as includ-
ing a reference to shipment to the Commonwealth of Puerto Rico.
‘‘(b) EXPORT LABEL.—For purposes of this section, an article is labeled for export
or contains an export label if it bears the mark, label, or notice required under sec-
tion 5904(b).
‘‘Subchapter E—Penalties
‘‘Sec. 5941. Civil penalties.
‘‘Sec. 5942. Criminal penalties.
‘‘SEC. 5941. CIVIL PENALTIES.
‘‘(a) OMITTING THINGS REQUIRED OR DOING THINGS FORBIDDEN.—Whoever will-
fully omits, neglects, or refuses to comply with any duty imposed upon them by this
chapter, or to do, or cause to be done, any of the things required by this chapter,
or does anything prohibited by this chapter, shall in addition to any other penalty
provided in this title, be liable to a penalty of $10,000, to be recovered, with costs
of suit, in a civil action, except where a penalty under subsection (b) or (c) or under
section 6651 or 6653 or part II of subchapter A of chapter 68 may be collected from
such person by assessment.
‘‘(b) FAILURE TO PAY TAX.—Whoever fails to pay any tax imposed by this chapter
at the time prescribed by law or regulations, shall, in addition to any other penalty
provided in this title, be liable to a penalty of 10 percent of the tax due but unpaid.
‘‘(c) SALE OF CANNABIS OR CANNABIS PRODUCTS FOR EXPORT.—
‘‘(1) Every person who sells, relands, or receives within the jurisdiction of the
United States any cannabis products which have been labeled or shipped for ex-
portation under this chapter,
‘‘(2) every person who sells or receives such relanded cannabis products, and
‘‘(3) every person who aids or abets in such selling, relanding, or receiving,
shall, in addition to the tax and any other penalty provided in this title, be liable
for a penalty equal to the greater of $10,000 or 10 times the amount of the tax im-
posed by this chapter. All cannabis products relanded within the jurisdiction of the
United States shall be forfeited to the United States and destroyed. All vessels, ve-
hicles, and aircraft used in such relanding or in removing such cannabis products
from the place where relanded, shall be forfeited to the United States.
‘‘(d) APPLICABILITY OF SECTION 6665.—The penalties imposed by subsections (b)
and (c) shall be assessed, collected, and paid in the same manner as taxes, as pro-
vided in section 6665(a).
‘‘(e) CROSS REFERENCES.—For penalty for failure to make deposits or for over-
statement of deposits, see section 6656.
‘‘SEC. 5942. CRIMINAL PENALTIES.
‘‘(a) FRAUDULENT OFFENSES.—Whoever, with intent to defraud the United
States—
‘‘(1) engages in business as a cannabis enterprise without filing the applica-
tion and obtaining the permit where required by this chapter or regulations
thereunder,
‘‘(2) fails to keep or make any record, return, report, or inventory, or keeps
or makes any false or fraudulent record, return, report, or inventory, required
by this chapter or regulations thereunder,
‘‘(3) refuses to pay any tax imposed by this chapter, or attempts in any man-
ner to evade or defeat the tax or the payment thereof,
‘‘(4) sells or otherwise transfers, contrary to this chapter or regulations there-
under, any cannabis products subject to tax under this chapter, or
‘‘(5) purchases, receives, or possesses, with intent to redistribute or resell, any
cannabis product—
‘‘(A) upon which the tax has not been paid or determined in the manner
and at the time prescribed by this chapter or regulations thereunder, or
‘‘(B) which, without payment of tax pursuant to section 5904, have been
diverted from the applicable purpose or use specified in that section,
shall, for each such offense, be fined not more than $10,000, or imprisoned not more
than 5 years, or both.
ctelli on DSK11ZRN23PROD with REPORTS
‘‘(b) LIABILITY TO TAX.—Any person who possesses cannabis products in violation
of subsection (a) shall be liable for a tax equal to the tax on such articles.’’.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00016 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
17
(c) STUDY.—Not later than 2 years after the date of the enactment of this Act,
and every 5 years thereafter, the Secretary of the Treasury, or the Secretary’s dele-
gate, shall—
(1) conduct a study concerning the characteristics of the cannabis industry,
including the number of persons operating cannabis enterprises at each level of
such industry, the volume of sales, the amount of tax collected each year, and
the areas of evasion, and
(2) submit to Congress recommendations to improve the regulation of the in-
dustry and the administration of the related tax.
(d) ANNUAL REPORTS REGARDING DETERMINATION OF APPLICABLE RATES.—Not
later than 6 months before the beginning of each calendar year to which section
5901(a)(2) of the Internal Revenue Code of 1986 (as added by this section) applies,
the Secretary of the Treasury, or the Secretary’s delegate, shall make publicly avail-
able a detailed description of the methodology which the Secretary anticipates using
to determine the applicable rate per ounce and the applicable rate per gram which
will apply for such calendar year under section 5901(c)(2) of such Code.
(e) CONFORMING AMENDMENTS.—
(1) Section 6103(o)(1)(A) of the Internal Revenue Code of 1986 is amended by
striking ‘‘and firearms’’ and inserting ‘‘firearms, and cannabis products’’.
(2) The table of chapters for subtitle E of such Code is amended by adding
at the end the following new item:
‘‘CHAPTER 56. CANNABIS PRODUCTS’’.
(3) The table of sections for subchapter A of chapter 98 of such Code is
amended by adding at the end the following new item:
‘‘Sec. 9512. Establishment of Opportunity Trust Fund.’’.
(f) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as otherwise provided in this subsection, the amend-
ments made by this section shall apply to removals, and applications for per-
mits under section 5922 of the Internal Revenue Code of 1986 (as added by sub-
section (b)), after 180 days after the date of the enactment of this Act.
(2) ESTABLISHMENT OF TRUST FUND.—The amendment made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 6. OPPORTUNITY TRUST FUND PROGRAMS.
(a) CANNABIS JUSTICE OFFICE; COMMUNITY REINVESTMENT GRANT PROGRAM.—
(1) CANNABIS JUSTICE OFFICE.—Part A of title I of the Omnibus Crime Control
and Safe Streets Act of 1968 (34 U.S.C. 10101 et seq.) is amended by inserting
after section 109 the following:
‘‘SEC. 110. CANNABIS JUSTICE OFFICE.
‘‘(a) ESTABLISHMENT.—There is established within the Office of Justice Programs
a Cannabis Justice Office.
‘‘(b) DIRECTOR.—The Cannabis Justice Office shall be headed by a Director who
shall be appointed by the Assistant Attorney General for the Office of Justice Pro-
grams. The Director shall report to the Assistant Attorney General for the Office
of Justice Programs. The Director shall award grants and may enter into compacts,
cooperative agreements, and contracts on behalf of the Cannabis Justice Office. The
Director may not engage in any employment other than that of serving as the Direc-
tor, nor may the Director hold any office in, or act in any capacity for, any organiza-
tion, agency, or institution with which the Office makes any contract or other ar-
rangement.
‘‘(c) EMPLOYEES.—
‘‘(1) IN GENERAL.—The Director shall employ as many full-time employees as
are needed to carry out the duties and functions of the Cannabis Justice Office
under subsection (d). Such employees shall be exclusively assigned to the Can-
nabis Justice Office.
‘‘(2) INITIAL HIRES.—Not later than 6 months after the date of enactment of
this section, the Director shall—
‘‘(A) hire no less than one-third of the total number of employees of the
Cannabis Justice Office; and
‘‘(B) no more than one-half of the employees assigned to the Cannabis
Justice Office by term appointment that may after 2 years be converted to
career appointment.
‘‘(3) LEGAL COUNSEL.—At least one employee hired for the Cannabis Justice
Office shall serve as legal counsel to the Director and shall provide counsel to
the Cannabis Justice Office.
ctelli on DSK11ZRN23PROD with REPORTS
‘‘(d) DUTIES AND FUNCTIONS.—The Cannabis Justice Office is authorized to—
‘‘(1) administer the Community Reinvestment Grant Program; and
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00017 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
18
‘‘(2) perform such other functions as the Assistant Attorney General for the
Office of Justice Programs may delegate, that are consistent with the statutory
obligations of this section.’’.
(2) COMMUNITY REINVESTMENT GRANT PROGRAM.—Title I of the Omnibus
Crime Control and Safe Streets Act of 1968 (34 U.S.C. et seq.) is amended by
adding at the end the following:
‘‘PART PP—COMMUNITY REINVESTMENT GRANT
PROGRAM
‘‘SEC. 3056. AUTHORIZATION.
‘‘(a) IN GENERAL.—The Director of the Cannabis Justice Office shall establish and
carry out a grant program, known as the ‘Community Reinvestment Grant Pro-
gram’, to provide eligible entities with funds to administer services for individuals
adversely impacted by the War on Drugs, including—
‘‘(1) job training;
‘‘(2) reentry services;
‘‘(3) legal aid for civil and criminal cases, including expungement of cannabis
convictions;
‘‘(4) literacy programs;
‘‘(5) youth recreation or mentoring programs; and
‘‘(6) health education programs.
‘‘(b) SUBSTANCE USE DISORDER SERVICES.—The Director, in consultation with the
Secretary of Health and Human Services, shall provide eligible entities with funds
to administer substance use disorder services for individuals adversely impacted by
the War on Drugs or connect patients with substance use disorder services. Also eli-
gible for such services are individuals who have been arrested for or convicted of
the sale, possession, use, manufacture, or cultivation of a controlled substance other
than cannabis (except for a conviction involving distribution to a minor).
‘‘SEC. 3057. FUNDING FROM OPPORTUNITY TRUST FUND.
‘‘The Director shall carry out the program under this part using funds made avail-
able under section 9512(c)(1) and (2) of the Internal Revenue Code.
‘‘SEC. 3058. DEFINITIONS.
‘‘In this part:
‘‘(1) The term ‘cannabis conviction’ means a conviction, or adjudication of juve-
nile delinquency, for a cannabis offense (as such term is defined in section 13
of the Marijuana Opportunity Reinvestment and Expungement Act).
‘‘(2) The term ‘eligible entity’ means a nonprofit organization, as defined in
section 501(c)(3) of the Internal Revenue Code, that is representative of a com-
munity or a significant segment of a community with experience in providing
relevant services to individuals adversely impacted by the War on Drugs in that
community.
‘‘(3) The term ‘individuals adversely impacted by the War on Drugs’ has the
meaning given that term in section 6 of the Marijuana Opportunity Reinvest-
ment and Expungement Act.’’.
(b) CANNABIS RESTORATIVE OPPORTUNITY PROGRAM; EQUITABLE LICENSING GRANT
PROGRAM.—
(1) CANNABIS RESTORATIVE OPPORTUNITY PROGRAM.—The Administrator of the
Small Business Administration shall establish and carry out a program, to be
known as the ‘‘Cannabis Restorative Opportunity Program’’, to provide loans
and technical assistance under section 7(m) of the Small Business Act (15
U.S.C. 636(m)) to assist small business concerns owned and controlled by so-
cially and economically disadvantaged individuals that operate in eligible States
or localities.
(2) EQUITABLE LICENSING GRANT PROGRAM.—The Administrator of the Small
Business Administration shall establish and carry out a grant program, to be
known as the ‘‘Equitable Licensing Grant Program’’, to provide any eligible
State or locality funds to develop and implement equitable cannabis licensing
programs that minimize barriers to cannabis licensing and employment for indi-
viduals adversely impacted by the War on Drugs, provided that each grantee
includes in its cannabis licensing program at least four of the following ele-
ments:
(A) A waiver of cannabis license application fees for individuals who re-
port an income below 250 percent of the Federal Poverty Level for at least
ctelli on DSK11ZRN23PROD with REPORTS
5 of the past 10 years and who are first-time applicants for a cannabis li-
cense.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00018 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
19
(B) A prohibition on the denial of a cannabis license based on a conviction
for a cannabis offense that took place prior to State legalization of cannabis
or the date of enactment of this Act, as appropriate.
(C) A prohibition on restrictions for licensing relating to criminal convic-
tions except with respect to a criminal conviction related to owning and op-
erating a business.
(D) A prohibition on cannabis license holders engaging in suspicionless
cannabis drug testing of their prospective or current employees, except with
respect to drug testing for safety-sensitive positions required under part 40
of title 49, Code of Federal Regulations.
(E) The establishment of a cannabis licensing board that is reflective of
the racial, ethnic, economic, and gender composition of the eligible State or
locality, to serve as an oversight body of the equitable licensing program.
(3) DEFINITIONS.—In this subsection:
(A) ELIGIBLE STATE OR LOCALITY.—The term ‘‘eligible State or locality’’
means a State or locality that has taken steps to—
(i) create an automatic process, at no cost to the individual, for the
expungement, destruction, or sealing of criminal records for cannabis
offenses; and
(ii) eliminate violations or other penalties for persons under parole,
probation, pre-trial, or other State or local criminal supervision for a
cannabis offense.
(B) INDIVIDUAL ADVERSELY IMPACTED BY THE WAR ON DRUGS.—The term
‘‘individual adversely impacted by the War on Drugs’’ means an indi-
vidual—
(i) who reports an income below 250 percent of the Federal Poverty
Level for at least 5 of the past 10 years; and
(ii) who has been arrested for or convicted of the sale, possession,
use, manufacture, or cultivation of cannabis (except for a conviction in-
volving distribution to a minor), or whose parent, sibling, spouse, or
child has been arrested for or convicted of such an offense.
(C) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY SOCIALLY AND
ECONOMICALLY DISADVANTAGED INDIVIDUALS.—The term ‘‘small business
concern owned and controlled by socially and economically disadvantaged
individuals’’ has the meaning given in section 8(d)(3)(C) of the Small Busi-
ness Act (15 U.S.C. 637(d)(3)(C)).
(D) STATE.—The term ‘‘State’’ means each of the several States, the Dis-
trict of Columbia, Puerto Rico, any territory or possession of the United
States, and any Indian Tribe (as defined in section 201 of Public Law 90–
294 (25 U.S.C. 1301) (commonly known as the ‘‘Indian Civil Rights Act of
1968’’)).
(c) STUDY ON PROGRAMS.—
(1) GAO STUDY.—The Comptroller General of the United States, in consulta-
tion with the Administrator of the Small Business Administration, shall conduct
an annual study on the individuals and entities receiving assistance under the
Cannabis Restorative Opportunity and Equitable Licensing Programs. This
study shall include the types of assistance by state, and a description of the ef-
forts by the Small Business Administration to increase access to capital for can-
nabis-related small business concerns owned and controlled by socially and eco-
nomically disadvantaged individuals, individuals adversely impacted by the War
on Drugs, as well as the racial, ethnic, economic and gender composition of the
eligible State or locality.
(2) REPORT.—Not later than 1 year after the date of enactment of this Act,
the Comptroller General of the United States shall submit a report on the re-
sults of the study conducted under paragraph (1) to—
(A) the Committee on Small Business of the House of Representatives;
(B) the Committee on Small Business and Entrepreneurship of the Sen-
ate;
(C) the Committee on the Judiciary of the House of Representatives; and
(D) the Committee on the Judiciary of the Senate.
SEC. 7. AVAILABILITY OF SMALL BUSINESS ADMINISTRATION PROGRAMS AND SERVICES TO
CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE PROVIDERS.
(a) DEFINITIONS RELATING TO CANNABIS-RELATED LEGITIMATE BUSINESSES AND
SERVICE PROVIDERS.—Section 3 of the Small Business Act (15 U.S.C. 632) is amend-
ed by adding at the end the following new subsection:
‘‘(gg) CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE PROVIDERS.—In
this Act:
ctelli on DSK11ZRN23PROD with REPORTS
‘‘(1) CANNABIS.—The term ‘cannabis’—
‘‘(A) means—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00019 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
20
‘‘(i) all parts of the plant Cannabis sativa L., whether growing or not;
‘‘(ii) the seeds thereof;
‘‘(iii) the resin extracted from any part of such plant; and
‘‘(iv) every compound, manufacture, salt, derivative, mixture, or prep-
aration of such plant, its seeds or resin; and
‘‘(B) does not include—
‘‘(i) hemp, as defined in section 297A of the Agricultural Marketing
Act of 1946;
‘‘(ii) the mature stalks of such plant, fiber produced from such stalks,
oil or cake made from the seeds of such plant, any other compound,
manufacture, salt, derivative, mixture, or preparation of such mature
stalks (except the resin extracted therefrom), fiber, oil, or cake, or the
sterilized seed of such plant which is incapable of germination; or
‘‘(iii) any drug product approved under section 505 of the Federal
Food, Drug, and Cosmetic Act, or biological product licensed under sec-
tion 351 of the Public Health Service Act.
‘‘(2) CANNABIS-RELATED LEGITIMATE BUSINESS.—The term ‘cannabis-related le-
gitimate business’ means a manufacturer, producer, or any person or company
that is a small business concern and that—
‘‘(A) engages in any activity described in subparagraph (B) pursuant to
a law established by a State or a political subdivision of a State, as deter-
mined by such State or political subdivision; and
‘‘(B) participates in any business or organized activity that involves han-
dling cannabis or cannabis products, including cultivating, producing, man-
ufacturing, selling, transporting, displaying, dispensing, distributing, or
purchasing cannabis or cannabis products.
‘‘(3) SERVICE PROVIDER.—The term ‘service provider’—
‘‘(A) means a business, organization, or other person that—
‘‘(i) sells goods or services to a cannabis-related legitimate business;
or
‘‘(ii) provides any business services, including the sale or lease of real
or any other property, legal or other licensed services, or any other an-
cillary service, relating to cannabis; and
‘‘(B) does not include a business, organization, or other person that par-
ticipates in any business or organized activity that involves handling can-
nabis or cannabis products, including cultivating, producing, manufac-
turing, selling, transporting, displaying, dispensing, distributing, or pur-
chasing cannabis or cannabis products.’’.
(b) SMALL BUSINESS DEVELOPMENT CENTERS.—Section 21(c) of the Small Business
Act (15 U.S.C. 648(c)) is amended by adding at the end the following new para-
graph:
‘‘(9) SERVICES FOR CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE
PROVIDERS.—A small business development center may not decline to provide
services to an otherwise eligible small business concern under this section solely
because such concern is a cannabis-related legitimate business or service pro-
vider.’’.
(c) WOMEN’S BUSINESS CENTERS.—Section 29 of the Small Business Act (15 U.S.C.
656) is amended by adding at the end the following new subsection:
‘‘(p) SERVICES FOR CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE PRO-
VIDERS.—A women’s business center may not decline to provide services to an other-
wise eligible small business concern under this section solely because such concern
is a cannabis-related legitimate business or service provider.’’.
(d) SCORE.—Section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B))
is amended by adding at the end the following new sentence: ‘‘The head of the
SCORE program established under this subparagraph may not decline to provide
services to an otherwise eligible small business concern solely because such concern
is a cannabis-related legitimate business or service provider.’’.
(e) VETERAN BUSINESS OUTREACH CENTERS.—Section 32 of the Small Business Act
(15 U.S.C. 657b) is amended by adding at the end the following new subsection:
‘‘(h) SERVICES FOR CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE PRO-
VIDERS.—A Veteran Business Outreach Center may not decline to provide services
to an otherwise eligible small business concern under this section solely because
such concern is a cannabis-related legitimate business or service provider.’’.
(f) SECTION 7(a) LOANS.—Section 7(a) of the Small Business Act (15 U.S.C. 636(a))
is amended by adding at the end the following new paragraph:
‘‘(38) LOANS TO CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE PRO-
ctelli on DSK11ZRN23PROD with REPORTS
VIDERS.—The Administrator may not decline to provide a guarantee for a loan
under this subsection, and a lender may not decline to make a loan under this
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00020 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
21
subsection, to an otherwise eligible small business concern solely because such
concern is a cannabis-related legitimate business or service provider.’’.
(g) DISASTER LOANS.—Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting after paragraph (15) the following new paragraph:
‘‘(16) ASSISTANCE TO CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE
PROVIDERS.—The Administrator may not decline to provide assistance under
this subsection to an otherwise eligible small business concern solely because
such concern is a cannabis-related legitimate business or service provider.’’.
(h) MICROLOANS.—Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is
amended by adding at the end the following new paragraph:
‘‘(14) ASSISTANCE TO CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE
PROVIDERS.—The Administrator may not decline to make a loan or a grant
under this subsection, and an eligible intermediary may not decline to provide
assistance under this subsection to an otherwise eligible borrower, eligible inter-
mediary, or eligible nonprofit entity (as applicable) solely because such bor-
rower, intermediary, or nonprofit entity is a cannabis-related legitimate busi-
ness or service provider.’’.
(i) SMALL BUSINESS INVESTMENT COMPANY DEBENTURES TO FINANCE CANNABIS-
RELATED LEGITIMATE BUSINESSES AND SERVICE PROVIDERS.—Part A of title III of
the Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended by
adding at the end the following new section:
‘‘SEC. 321. DEBENTURES TO FINANCE CANNABIS-RELATED LEGITIMATE BUSINESSES AND
SERVICE PROVIDERS.
‘‘(a) GUARANTEES.—The Administrator may not decline to purchase or guarantee
a debenture made under this title to an otherwise eligible small business invest-
ment company solely because such small business investment company provides fi-
nancing to an entity that is a cannabis-related legitimate business or service pro-
vider (as defined in section 7(a)(38) of the Small Business Act).
‘‘(b) OTHER ASSISTANCE.—A small business investment company may not decline
to provide assistance under this title to an otherwise eligible small business concern
solely because such small business concern is a cannabis-related legitimate business
or service provider (as defined in section 7(a)(38) of the Small Business Act).’’.
(j) STATE OR LOCAL DEVELOPMENT COMPANY LOANS.—Title V of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by adding at the
end the following new section:
‘‘SEC. 511. LOANS TO FINANCE CANNABIS-RELATED LEGITIMATE BUSINESSES AND SERVICE
PROVIDERS.
‘‘(a) LOANS AND LOAN GUARANTEES.—The Administrator may not decline to make
or provide a guarantee for a loan under this title to an otherwise eligible qualified
State or local development company solely because such qualified State or local de-
velopment company provides financing to an entity that is a cannabis-related legiti-
mate business or service provider (as defined in section 7(a)(38) of the Small Busi-
ness Act).
‘‘(b) OTHER ASSISTANCE.—A qualified State or local development company may not
decline to provide assistance under this title to an otherwise eligible small business
concern solely because such small business concern is a cannabis-related legitimate
business or service provider (as defined in section 7(a)(38) of the Small Business
Act).’’.
SEC. 8. NO DISCRIMINATION IN THE PROVISION OF A FEDERAL PUBLIC BENEFIT ON THE
BASIS OF CANNABIS.
(a) IN GENERAL.—No person may be denied any Federal public benefit (as such
term is defined in section 401(c) of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996 (8 U.S.C. 1611(c))) on the basis of any use or pos-
session of cannabis, or on the basis of a conviction or adjudication of juvenile delin-
quency for a cannabis offense, by that person.
(b) SECURITY CLEARANCES.—Federal agencies may not use past or present can-
nabis or marijuana use as criteria for granting, denying, or rescinding a security
clearance.
SEC. 9. NO ADVERSE EFFECT FOR PURPOSES OF THE IMMIGRATION LAWS.
(a) IN GENERAL.—For purposes of the immigration laws (as such term is defined
in section 101 of the Immigration and Nationality Act), cannabis may not be consid-
ered a controlled substance, and an alien may not be denied any benefit or protec-
tion under the immigration laws based on any event, including conduct, a finding,
an admission, addiction or abuse, an arrest, a juvenile adjudication, or a conviction,
relating to cannabis, regardless of whether the event occurred before, on, or after
ctelli on DSK11ZRN23PROD with REPORTS
the effective date of this Act.
(b) CANNABIS DEFINED.—The term ‘‘cannabis’’—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00021 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
22
(1) means all parts of the plant Cannabis sativa L., whether growing or not;
the seeds thereof; the resin extracted from any part of such plant; and every
compound, manufacture, salt, derivative, mixture, or preparation of such plant,
its seeds or resin; and
(2) does not include—
(A) hemp, as defined in section 297A of the Agricultural Marketing Act
of 1946;
(B) the mature stalks of such plant, fiber produced from such stalks, oil
or cake made from the seeds of such plant, any other compound, manufac-
ture, salt, derivative, mixture, or preparation of such mature stalks (except
the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of
such plant which is incapable of germination; or
(C) any drug product approved under section 505 of the Federal Food,
Drug, and Cosmetic Act, or biological product licensed under section 351 of
the Public Health Service Act.
(c) CONFORMING AMENDMENTS TO IMMIGRATION AND NATIONALITY ACT.—The Im-
migration and Nationality Act (8 U.S.C. 1101 et seq.) is amended—
(1) in section 212(h), by striking ‘‘and subparagraph (A)(i)(II) of such sub-
section insofar as it relates to a single offense of simple possession of 30 grams
or less of marijuana’’;
(2) in section 237(a)(2)(B)(i), by striking ‘‘other than a single offense involving
possession for one’s own use of 30 grams or less of marijuana’’;
(3) in section 101(f)(3), by striking ‘‘(except as such paragraph relates to a sin-
gle offense of simple possession of 30 grams or less of marihuana)’’;
(4) in section 244(c)(2)(A)(iii)(II) by striking ‘‘except for so much of such para-
graph as relates to a single offense of simple possession of 30 grams or less of
marijuana’’;
(5) in section 245(h)(2)(B) by striking ‘‘(except for so much of such paragraph
as related to a single offense of simple possession of 30 grams or less of mari-
juana)’’;
(6) in section 210(c)(2)(B)(ii)(III) by striking ‘‘, except for so much of such
paragraph as relates to a single offense of simple possession of 30 grams or less
of marihuana’’; and
(7) in section 245A(d)(2)(B)(ii)(II) by striking ‘‘, except for so much of such
paragraph as relates to a single offense of simple possession of 30 grams or less
of marihuana’’.
SEC. 10. RESENTENCING AND EXPUNGEMENT.
(a) EXPUNGEMENT OF NON-VIOLENT FEDERAL CANNABIS OFFENSE CONVICTIONS
FOR INDIVIDUALS NOT UNDER A CRIMINAL JUSTICE SENTENCE.—
(1) IN GENERAL.—Not later than 1 year after the date of the enactment of this
Act, each Federal district shall conduct a comprehensive review and issue an
order expunging each conviction or adjudication of juvenile delinquency for a
non-violent Federal cannabis offense entered by each Federal court in the dis-
trict before the date of enactment of this Act and on or after May 1, 1971. Each
Federal court shall also issue an order expunging any arrests associated with
each expunged conviction or adjudication of juvenile delinquency.
(2) NOTIFICATION.—To the extent practicable, each Federal district shall no-
tify each individual whose arrest, conviction, or adjudication of delinquency has
been expunged pursuant to this subsection that their arrest, conviction, or adju-
dication of juvenile delinquency has been expunged, and the effect of such
expungement.
(3) RIGHT TO PETITION COURT FOR EXPUNGEMENT.—At any point after the date
of enactment of this Act, any individual with a prior conviction or adjudication
of juvenile delinquency for a non-violent Federal cannabis offense, who is not
under a criminal justice sentence, may file a motion for expungement. If the
expungement of such a conviction or adjudication of juvenile delinquency is re-
quired pursuant to this Act, the court shall expunge the conviction or adjudica-
tion, and any associated arrests. If the individual is indigent, counsel shall be
appointed to represent the individual in any proceedings under this subsection.
(4) SEALED RECORD.—The court shall seal all records related to a conviction
or adjudication of juvenile delinquency that has been expunged under this sub-
section. Such records may only be made available by further order of the court.
(b) SENTENCING REVIEW FOR INDIVIDUALS UNDER A CRIMINAL JUSTICE SEN-
TENCE.—
(1) IN GENERAL.—For any individual who is under a criminal justice sentence
for a non-violent Federal cannabis offense, the court that imposed the sentence
ctelli on DSK11ZRN23PROD with REPORTS
shall, on motion of the individual, the Director of the Bureau of Prisons, the
attorney for the Government, or the court, conduct a sentencing review hearing.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00022 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
23
If the individual is indigent, counsel shall be appointed to represent the indi-
vidual in any sentencing review proceedings under this subsection.
(2) POTENTIAL REDUCED RESENTENCING.—After a sentencing hearing under
paragraph (1), a court shall—
(A) expunge each conviction or adjudication of juvenile delinquency for a
non-violent Federal cannabis offense entered by the court before the date
of enactment of this Act, and any associated arrest;
(B) vacate the existing sentence or disposition of juvenile delinquency
and, if applicable, impose any remaining sentence or disposition of juvenile
delinquency on the individual as if this Act, and the amendments made by
this Act, were in effect at the time the offense was committed; and
(C) order that all records related to a conviction or adjudication of juve-
nile delinquency that has been expunged or a sentence or disposition of ju-
venile delinquency that has been vacated under this Act be sealed and only
be made available by further order of the court.
(c) EFFECT OF EXPUNGEMENT.—An individual who has had an arrest, a conviction,
or juvenile delinquency adjudication expunged under this section—
(1) may treat the arrest, conviction, or adjudication as if it never occurred;
and
(2) shall be immune from any civil or criminal penalties related to perjury,
false swearing, or false statements, for a failure to disclose such arrest, convic-
tion, or adjudication.
(d) EXCEPTION.—An individual who at sentencing received an aggravating role ad-
justment pursuant to United States Sentencing Guideline 3B1.1(a) in relation to a
Federal cannabis offense conviction shall not be eligible for expungement of that
Federal cannabis offense conviction under this section.
(e) DEFINITIONS.—In this section:
(1) The term ‘‘Federal cannabis offense’’ means an offense that is no longer
punishable pursuant to this Act or the amendments made under this Act.
(2) The term ‘‘expunge’’ means, with respect to an arrest, a conviction, or a
juvenile delinquency adjudication, the removal of the record of such arrest, con-
viction, or adjudication from each official index or public record.
(3) The term ‘‘under a criminal justice sentence’’ means, with respect to an
individual, that the individual is serving a term of probation, parole, supervised
release, imprisonment, official detention, pre-release custody, or work release,
pursuant to a sentence or disposition of juvenile delinquency imposed on or
after the effective date of the Controlled Substances Act (May 1, 1971).
(f) STUDY.—The Comptroller General of the United States, in consultation with
the Secretary of Health and Human Services, shall conduct a demographic study of
individuals convicted of a Federal cannabis offense. Such study shall include infor-
mation about the age, race, ethnicity, sex, and gender identity of those individuals,
the type of community such users dwell in, and such other demographic information
as the Comptroller General determines should be included.
(g) REPORT.—Not later than 2 years after the date of the enactment of this Act,
the Comptroller General of the United States shall report to Congress the results
of the study conducted under subsection (f).
SEC. 11. REFERENCES IN EXISTING LAW TO MARIJUANA OR MARIHUANA.
Wherever, in the statutes of the United States or in the rulings, regulations, or
interpretations of various administrative bureaus and agencies of the United
States—
(1) there appears or may appear the term ‘‘marihuana’’ or ‘‘marijuana’’, that
term shall be struck and the term ‘‘cannabis’’ shall be inserted; and
(2) there appears or may appear the term ‘‘Marihuana’’ or ‘‘Marijuana’’, that
term shall be struck and the term ‘‘Cannabis’’ shall be inserted.
SEC. 12. SEVERABILITY.
If any provision of this Act or an amendment made by this Act, or any application
of such provision to any person or circumstance, is held to be unconstitutional, the
remainder of this Act, the amendments made by this Act, and the application of this
Act and the amendments made by this Act to any other person or circumstance
shall not be affected.
SEC. 13. CANNABIS OFFENSE DEFINED.
For purposes of this Act, the term ‘‘cannabis offense’’ means a criminal offense re-
lated to cannabis—
(1) that, under Federal law, is no longer punishable pursuant to this Act or
the amendments made under this Act; or
ctelli on DSK11ZRN23PROD with REPORTS
(2) that, under State law, is no longer an offense or that was designated a
lesser offense or for which the penalty was reduced under State law pursuant
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00023 Fmt 6659 Sfmt 6621 E:\HR\OC\HR276P1.XXX HR276P1
24
to or following the adoption of a State law authorizing the sale or use of can-
nabis.
SEC. 14. RULEMAKING.
Unless otherwise provided in this Act, not later than 1 year after the date of en-
actment of this Act, the Department of the Treasury, the Department of Justice, and
the Small Business Administration shall issue or amend any rules, standard oper-
ating procedures, and other legal or policy guidance necessary to carry out imple-
mentation of this Act. After the 1-year period, any publicly issued sub-regulatory
guidance, including any compliance guides, manuals, advisories and notices, may
not be issued without 60-day notice to appropriate congressional committees. Notice
shall include a description and justification for additional guidance.
SEC. 15. SOCIETAL IMPACT OF MARIJUANA LEGALIZATION STUDY.
The Comptroller General of the United States shall, not later than 2 years after
the date of enactment of this Act, provide to Congress a study that addresses the
societal impact of the legalization of recreational cannabis by States, including—
(1) sick days reported to employers;
(2) workers compensations claims;
(3) tax revenue remitted to States resulting from legal marijuana sales;
(4) changes in government spending related to enforcement actions and court
proceedings;
(5) Federal welfare assistance applications;
(6) rate of arrests related to methamphetamine possession;
(7) hospitalization rates related to methamphetamine and narcotics use;
(8) uses of marijuana and its byproducts for medical purposes;
(9) uses of marijuana and its byproducts for purposes relating to the health,
including the mental health, of veterans;
(10) arrest rates of individuals driving under the influence or driving while
intoxicated by marijuana;
(11) traffic-related deaths and injuries where the driver is impaired by mari-
juana;
(12) arrest of minors for marijuana-related charges;
(13) violent crime rates;
(14) school suspensions, expulsions, and law enforcement referrals that are
marijuana-related;
(15) high school dropout rates;
(16) changes in district-wide and State-wide standardized test scores;
(17) marijuana-related hospital admissions and poison control calls;
(18) marijuana-related juvenile admittances into substance rehabilitation fa-
cilities and mental health clinics;
(19) diversion of marijuana into neighboring States and drug seizures in
neighboring States;
(20) marijuana plants grown on public lands in contravention to Federal and
State laws; and
(21) court filings under a State’s organized crime statutes.
Purpose and Summary
H.R. 3617, the ‘‘Marijuana Opportunity Reinvestment and
Expungement Act,’’ or the ‘‘MORE Act’’ would (1) remove mari-
juana, or cannabis, from the list of substances controlled under the
Controlled Substances Act (CSA); (2) create an Opportunity Trust
Fund to be funded through an excise tax on the sale of cannabis
products; (3) establish a Cannabis Justice Office within the Depart-
ment of Justice to administer a Community Reinvestment Grant
Program to fund nonprofits that provide services to individuals
most adversely impacted by the War on Drugs; (4) create a Can-
nabis Opportunity Program within the Small Business Administra-
tion (SBA) to provide eligible states and localities with funds for
loans to business concerns owned and controlled by socially and
economically disadvantaged individuals and an Equitable Licensing
Program, also within SBA, to provide funds to eligible states and
localities for developing cannabis licensing programs that minimize
barriers to cannabis licensing and employment for individuals most
ctelli on DSK11ZRN23PROD with REPORTS
adversely impacted by the War on Drugs; (5) ensure that SBA pro-
VerDate Sep 11 2014 06:48 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00024 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
25
grams and services are made available to cannabis-related legiti-
mate businesses and service providers; (6) provide for the
expungement of Federal cannabis arrests and offenses, the
vacating and sealing of cannabis offenses and for resentencing
hearings, where appropriate; (7) protect individuals from discrimi-
nation in the provision of public benefits on the basis of use, pos-
session, or convictions, or juvenile adjudications for cannabis of-
fenses; and (8) prohibit consideration of cannabis as a controlled
substance for purposes of federal immigration laws.
On May 28, 2021, Chairman Jerrold Nadler (D–NY) introduced
H.R. 3617, with Crime Subcommittee Chair Sheila Jackson Lee (D–
TX), Representatives Barbara Lee (D–CA), Earl Blumenauer (D–
OR), Hakeem E. Jeffries (D–NY), and Nydia Velázquez (D–NY) as
original cosponsors.
Background and Need for Legislation
Marijuana (or cannabis), as defined in the Controlled Substances
Act (CSA),1 includes ‘‘all parts of the plant Cannabis sativa L.,
whether growing or not; the seeds thereof; the resin extracted from
any part of such plant; and every compound, manufacture, salt, de-
rivative, mixture, or preparation of such plant, its seeds or resin.’’ 2
The CSA definition of marijuana exempts cannabis plant material
that falls into four categories—mature stalks, fiber produced from
mature stalks, oil or cake made from seeds, and seeds incapable of
germination—as well as ‘‘any other compound, manufacture, salt,
derivative, mixture, or preparation’’ of the exempt plant material.3
In addition, the Agriculture Improvement Act of 2018 4 explicitly
exempted hemp from the definition of marijuana under the CSA.5
The current federal statutory scheme relative to marijuana
comes from the CSA. The CSA makes it unlawful to manufacture,
import, possess, use, and distribute the substances it regulates, in-
cluding marijuana. Historically, states also prohibited marijuana
use, although there has been an increasing trend towards state le-
galization in the last two decades. In 1996, California became the
first state to legalize medical cannabis with the approval of Propo-
sition 215.6 Since then, 36 states and the District of Columbia have
legalized medical cannabis.7 In 2012, Colorado and Washington be-
came the first two states to legalize the recreational use of can-
nabis.8 At this time, 19 states and the District of Columbia have
1 21 U.S.C. §§ 801 et seq. (2019).
2 21 U.S.C. § 802(16)(A) (2019). In different parts of the U.S. Code, including the CSA, mari-
juana is referred to as ‘‘marihuana.’’
3 21 U.S.C. § 802(16)(B)(ii) (2019).
4 Pub. L. No. 115–334, 132 Stat. 4490 (2018).
5 21 U.S.C. § 802(16)(B)(i) (2019).
6 John Balzar, Voters Approve Measure to Use Pot as Medicine, L.A. TIMES (Nov. 6, 1996),
available at https://www.latimes.com/archives/la-xpm-1996-11-06-mn-62740-story.html.
7 The 36 states are: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut,
Delaware, Florida, Hawaii, Illinois, Louisiana, Maine, Maryland, Massachusetts, Michigan, Min-
nesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico,
New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah,
Vermont, Virginia, Washington, and West Virginia.
8 Keith Coffman & Nicole Neroulias, Colorado, Washington first states to legalize recreational
ctelli on DSK11ZRN23PROD with REPORTS
pot, REUTERS (Nov. 6, 2012), https://www.reuters.com/article/us-usa-marijuana-legalization/colo-
rado-washington-first-states-to-legalize-recreational-pot-idUSBRE8A602D20121107.
VerDate Sep 11 2014 06:48 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00025 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
26
legalized cannabis for adult recreational use.9 In addition, the U.S.
territories of Guam,10 the Northern Mariana Islands,11 Puerto
Rico,12 and the U.S. Virgin Islands 13 have legalized marijuana for
medical or recreational purposes. The legalization of cannabis at
the state level, whether for medical or recreational use, has in
many instances put state laws in apparent conflict with federal
statutes that broadly proscribe the possession or use of marijuana.
The CSA is Title II of the Comprehensive Drug Abuse Prevention
and Control Act.14 At the time of its passage, in 1970, President
Nixon sent a message to Congress declaring drug abuse ‘‘public
enemy number one’’ and announcing a ‘‘new, all-out offensive.’’ 15
This policy initiative came to be known as the ‘‘War on Drugs.’’
The CSA directed the President to establish a Commission on
Marihuana and Drug Abuse and issue a study report.16 Among
other things, the Commission’s first report concluded that criminal-
ization was ‘‘too harsh a tool to apply to personal possession even
in the effort to discourage use,’’ and that ‘‘the actual and potential
harm of use of the drug is not great enough to justify intrusion by
the criminal law into private behavior, a step which our society
takes only with the greatest reluctance.’’17 Although the Nixon
Administration dismissed these recommendations at the federal
level, during the mid-1970s, virtually all states softened their pen-
alties for marijuana possession.18 Despite some relaxation at the
state level, President Nixon created the Drug Enforcement Agency
in 1973, within the Department of Justice, establishing a single
federal agency to enforce federal drug laws and to consolidate and
coordinate the government’s drug control activities.19
The CSA instituted a ‘‘scheduling’’ system, through which the
federal government regulates the lawful production, possession and
distribution of controlled substances. Placement on each of the five
schedules is based upon the substance’s medical use, potential for
abuse, and safety or dependence liability. Marijuana was initially
placed, and today remains, on Schedule I.20 THC is also on Sched-
ule I.21 By virtue of their placement on Schedule I, marijuana and
THC have been deemed by the federal government to have: (1) a
9 The 19 states are: Alaska, Arizona, California, Colorado, Connecticut, Illinois, Maine, Massa-
chusetts, Michigan, Montana, Nevada, New Jersey, New Mexico, New York, Oregon, South Da-
kota, Vermont, Virginia, and Washington.
10 See Christopher Ingraham, Medical Marijuana Advocates Notch an Early Victory in Guam,
WASH. POST (Nov. 4, 2014), https://www.washingtonpost.com/news/wonk/wp/2014/11/04/medical-
marijuana-advocates-notch-an-early-victory-in-guam/.
11 See Tom Angell, Governor Signs Marijuana Legalization Bill, Making History in U.S. Terri-
tory, FORBES (Sep. 21, 2018), https://www.forbes.com/sites/tomangell/2018/09/21/governor-signs-
marijuana-legalization-bill-making-history-in-us-territory/#1709d6dc27ea.
12 Alexandra Sifferlin, Puerto Rico Governor Signs Executive Order to Legalize Medical Mari-
juana, TIME (May 4, 2015), https://time.com/3845638/puerto-rico-medical-marijuana/.
13 Kyle Jaeger, Governor Signs Bill Legalizing Medical Marijuana in the U.S. Virgin Islands,
MARIJUANA MOMENT (Jan. 19, 2019), https://www.marijuanamoment.net/governor-signs-bill-le-
galizing-medical-marijuana-in-the-u-s-virgin-islands/.
14 See Pub. L. No. 91-513, 84 Stat. 1242 (1970).
15 DRUG POL’Y ALL., A Brief History of the Drug War, https://drugpolicy.org/issues/brief-history-
drug-war.
16 See Pub. L. No. 91-513, 84 Stat. 1280–81, § 601 (1970).
17 NATIONAL COMMISSION ON MARIHUANA AND DRUG ABUSE, MARIHUANA: A SIGNAL OF MIS-
UNDERSTANDING—THE OFFICIAL REPORT OF THE NATIONAL COMMISSION ON MARIHUANA AND
DRUG ABUSE 176 (1972).
18 Brent Staples, The Federal Marijuana Ban is Rooted in Myth and Xenophobia, N.Y. TIMES
(July 29, 2014), https://www.nytimes.com/2014/07/30/opinion/high-time-federal-marijuana-ban-is-
rooted-in-myth.html.
19 See https://www.dea.gov/history.
ctelli on DSK11ZRN23PROD with REPORTS
20 See 21 U.S.C. § 812(c)(c)(10) (2019).
21 21 U.S.C. § 812(c)(c)(17) (2019).
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00026 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
27
high potential for abuse; (2) no currently accepted medical use in
treatment in the United States; and (3) a lack of accepted safety
for use under medical supervision.22 Because of this, Schedule I
substances may not be dispensed under a prescription, and such
substances may only be used for bona fide, federal government-ap-
proved research studies.23
Individuals who want to conduct research on marijuana must do
so in accordance with the CSA and other federal laws. If avail-
ability of a controlled substance is sought for purposes of research,
the researcher must obtain a registration issued by the DEA.24
There are strict storage requirements with which all registrants
are expected to comply.25 Since 1968, the DEA has issued only one
license for the cultivation of marijuana for research to the Univer-
sity of Mississippi.26 The University of Mississippi’s application
was renewed in 2015,27 but no other applications have been ap-
proved by the DEA.28 However, in early 2020, the DEA proposed
a process to expand marijuana research in the United States. More
recently, in May 2021, the DEA announced that it may register ad-
ditional entities; however, formal agreements with those select en-
tities are still being finalized.
During the 1980s, Congress and President Ronald Reagan en-
acted many mandatory minimum penalties and increased the
length of existing penalties, particularly for drug and violent felo-
nies.29 The Reagan Administration also launched the ‘‘Just Say No’’
campaign against drug use and enforced a ‘‘zero tolerance’’ policy
in relation to drugs.30 Congress created the U.S. Sentencing Com-
mission during this time period, as part of the Sentencing Reform
Act provisions of the Comprehensive Crime Control Act of 1984,31
to establish sentencing policies and practices for the federal courts,
‘‘including guidelines to be consulted regarding the appropriate
form and severity of punishment for offenders convicted of federal
22 21 U.S.C. § 812(b)(1) (2019).
23 21 U.S.C. § 823(f) (2019). Under the CSA, only DEA-licensed doctors are allowed to prescribe
controlled substances listed in Schedules II-V to patients. See 21 C.F.R. § 1306.03 (persons enti-
tled to issue prescriptions). Federal regulations stipulate that a lawful prescription for a con-
trolled substance may only be ‘‘issued for a legitimate medical purpose by an individual practi-
tioner acting in the usual course of his professional practice.’’ 21 C.F.R. § 1306.04.
24 See 21 U.S.C. § 822; see also 21 C.F.R. § 1301.11(a) (‘‘Every person who manufactures, dis-
tributes, dispenses, imports, or exports any controlled substance or who proposes to engage in
the manufacture, distribution, dispensing, importation or exportation of any controlled sub-
stance shall obtain a registration unless exempted by law or pursuant to §§ 1301.22 through
1301.26.’’).
25 All applicants and registrants must ‘‘provide effective controls and procedures to guard
against theft and diversion of controlled substances.’’ 21 C.F.R. § 1301.71.
26 National Institute on Drug Abuse, NIDA’s Role in Providing Marijuana for Research, avail-
able at https://www.drugabuse.gov/drugs-abuse/marijuana/nidas-role-in-providing-marijuana-re-
search.
27 Id.
28 Andrew Joseph, DEA Solicited Applications to Grow Marijuana for Research. It Hasn’t Ap-
proved One, STAT (July 24, 2017), https://www.statnews.com/2017/07/24/dea-marijuana-licenses-
research/. In August of 2016, the DEA had announced the adoption of a new policy ‘‘designed
to increase the number of entities registered under the Controlled Substances Act (CSA) to grow
(manufacture) marijuana to supply legitimate researchers in the United States.’’ Applications
to Become Registered Under the Controlled Substances Act to Manufacture Marijuana to Supply
Researchers in the United Sates, 81 Fed. Reg. 53,846 (Aug. 12, 2016) (codified at 21 C.F.R. pt.
1301).
29 See U.S. SENTENCING COMM’N, 2011 REPORT TO THE CONGRESS: MANDATORY MINIMUM PEN-
ALTIES IN THE CRIMINAL JUSTICE SYSTEM 23 (2011).
30 See Michael McGrath, Nancy Reagan and the Negative Impact of the ‘Just Say No’ Anti-
Drug Campaign, THE GUARDIAN (Mar. 8, 2016), https://www.theguardian.com/society/2016/mar/
ctelli on DSK11ZRN23PROD with REPORTS
08/nancy-reagan-drugs-just-say-no-dare-program-opioid-epidemic.
31 Pub. L. No. 98–473, 98 Stat. 1837, 1987 (1984).
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00027 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
28
crimes.’’ 32 The Sentencing Commission began to develop guidelines
that operated by establishing a mandatory minimum term of im-
prisonment where none had existed before,33 but Congress also
began to reenact mandatory minimums, many of which were put
in place through the Anti-Drug Abuse Act of 1986.34
The Anti-Drug Abuse Act of 1986 set forth the basic framework
of mandatory minimum penalties for federal drug trafficking of-
fenses. The Act established quantities that triggered those manda-
tory minimum penalties, ranging from five years to life imprison-
ment, which differed for various drugs.35 The Anti-Drug Abuse Act
established mandatory minimums of ten years for possessing with
intent to distribute, importing, or exporting 1000 kilograms or
more of a mixture or substance containing a detectable amount of
marijuana, and five years for possessing with intent to distribute,
importing, or exporting 100 kilograms or more of a mixture or sub-
stance containing a detectable amount of marijuana.36 In addition,
the Act established that a person convicted of possessing with in-
tent to distribute, importing, or exporting a controlled substance in
Schedule I (including marijuana) could be sentenced to up to 20
years in prison.37
The current federal statutory scheme prohibits the cultivation or
distribution of marijuana, the possession of marijuana with the in-
tent to distribute, as well as the importation and exportation of
marijuana.38 Marijuana offenses involve some of the same manda-
tory minimums as were mandated by Congress in the Anti-Drug
Abuse Act (ten years 39 and five years,40 depending on the amount
at issue, and higher mandatory minimums ranging from 15 years
to life in prison, depending on recidivism and whether death or se-
rious bodily injury resulted).41
The mere possession of marijuana, without intent to distribute,
is generally a misdemeanor subject to up to one year of imprison-
ment.42 A violation of this federal ‘‘simple possession’’ statute after
a single prior conviction under any federal or state drug law trig-
gers a mandatory minimum imprisonment term of 15 days (up to
a maximum of two years) and this increases to a minimum of 90
32 U.S. Sentencing Comm’n, Mission, available at https://www.ussc.gov/about-page.
33 See 18 U.S.C. § 3553(b)(1) (provision severed and excised by United States v. Booker, 543
U.S. 220 (2005)).
34 Pub. L. No. 99–570, 100 Stat. 3207 (1986). The Act established mandatory minimums in
21 U.S.C. §§ 841 (possession with intent to distribute controlled substances); 844 (simple posses-
sion); 845 (distribution to a person under 21 years of age); 845a (distribution near a school);
845b (use of a child in a drug operation); 960 (controlled substance import or export offenses);
and in 18 U.S.C. § 924(e) (adding drug offenses to the Armed Career Criminal Act’s predicate
offense list).
35 Pub. L. No. 99–570, 100 Stat. 3207–2 (1984).
36 Pub. L. No. 99–570, 100 Stat. 3207–2 and 3207–15 (1986). The Act established additional
mandatory minimums of 10 years, 20 years and life imprisonment depending on whether death
or serious bodily injury resulted from use of the drug or whether the offense was committed
following a prior felony drug conviction. See id.
37 Pub. L. No. 99–570, 100 Stat. 3207–4 and 3207–17 (1986). With a drug prior, the maximum
sentence increased to 30 years. Id. If death or bodily injury resulted from use of the substance,
the Act mandated a mandatory minimum term of 20 years, and, with a drug prior, a sentence
of life in prison. Id.
38 See 21 U.S.C. §§ 841(b)(1)(A)–(D) and 960(b)(1)–(4) (2019).
39 This mandatory minimum now includes the possession of ‘‘1,000 or more marihuana plants,
regardless of weight.’’ See 21 U.S.C. § 841(b)(1)(A)(vii) (2019).
40 This mandatory minimum now includes the possession of ‘‘100 or more marihuana plants,
regardless of weight.’’ See 21 U.S.C. § 841(b)(1)(B)(vii) (2019).
41 See 21 U.S.C. §§ 841(b)(1)(A)–(B); 960(b)(1)–(2) (2019); see also 21 U.S.C. § 851 (2019) (pro-
vides a procedure for a government filing seeking an enhanced penalty for a drug offender pre-
ctelli on DSK11ZRN23PROD with REPORTS
viously convicted of a ‘‘felony drug offense’’).
42 21 U.S.C. § 844(a) (2019).
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00028 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
29
days (and a maximum of three years) with multiple prior drug con-
victions.43 In a case concerning less than 50 kilograms of mari-
juana, a person can be subject to up to five years of imprison-
ment.44
Pursuant to the CSA, the federal government prosecutes a large
number of drug trafficking offenses. In fiscal year 2020, there were
64,565 cases reported to the United States Sentencing Commis-
sion.45 Of these, 16,501 cases involved drug trafficking, and 6.9%
of the cases involving drug trafficking involved marijuana.46 Mari-
juana trafficking offenders have decreased by 67.3% since FY
2016.47 In fiscal year 2020, there were 1,118 marijuana trafficking
offenders, which reflects the continuing trend of a decreasing num-
ber of offenders since FY 2016.48 The vast majority of marijuana
trafficking offenders were men, at 88.8%, in fiscal year 2020.49
Over half (59.8%) were United States citizens.50 62% of marijuana
trafficking offenders prosecuted in federal court in fiscal year 2020
were Hispanic or Latino, 17.9% were Black, 14.9% were White, and
5.2% were offenders from other races.51 65.4% had little or no prior
criminal history and 37.1% received a decreased sentence due to
minimal participation in the offense. 88% were sentenced to prison
and the average sentence of all marijuana trafficking offenders was
29 months.52 33.1% of all marijuana trafficking offenders were con-
victed of an offense carrying a mandatory minimum, although
73.9% were not subject to a mandatory minimum for the following
reasons: (1) 51.4% were determined to be eligible for a ‘‘safety
valve’’ reduction; (2) 8.9% provided substantial assistance to the
government; and (3) 13.6% provided substantial assistance and
were eligible for the safety valve.53
The Federal Bureau of Investigation reported that police arrested
545,602 people for cannabis-related crimes in 2019. That arrest
rate is 9% higher than the 495,871 people arrested for violent
crimes the same year.54 Of the 1,067,764 arrests for all drug of-
fenses reported in the United States in Fiscal Year 2019,55 13.3%
were for the sale or manufacture of any drug and, of these, 3.3%—
or approximately 7,424 arrests—were for marijuana.56 In 2018, the
percentage of drug possession arrests relative to arrests for all drug
offenses was 86.7%; of these, 32.1% were for marijuana.57
The possession, cultivation, or distribution of marijuana remains
a federal crime within every state that has legalized it. As a result,
43 Id.
44 21 U.S.C. § 841(b)(1)(D) (2019).
45 U.S. Sentencing Comm’n, Quick Facts: Marijuana Trafficking Offenses, at 1, https://
www.ussc.gov/sites/default/files/pdf/research-and-publications/quick-facts/Marijuana—FY20.pdf.
46 Id.
47 Id.
48 Id.
49 Id.
50 Id.
51 Id.
52 Id.
53 Id.
54 See Federal Bureau of Investigation, Uniform Crime Report, 2019 Crime in the United
States, Estimated Number of Arrests, United States, 2018 (Table 29), https://ucr.fbi.gov/crime-
in-the-u.s/2019/crime-in-the-u.s.-2019/topic-pages/persons-arrested. See also https://
www.forbes.com/sites/emilyearlenbaugh/2020/10/06/more-people-were-arrested-for-cannabis-last-
year-than-for-all-violent-crimes-put-together-according-to-fbi-data/?sh=31c6fd71122f.
55 See Federal Bureau of Investigation, Uniform Crime Report, 2018 Crime in the United
States, Estimated Number of Arrests, United States, 2018 (Table 29), https://ucr.fbi.gov/crime-
in-the-u.s/2018/crime-in-the-u.s.-2018/tables/table-29.
ctelli on DSK11ZRN23PROD with REPORTS
56 See id.
57 See id.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00029 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
30
a person who grows, possesses, uses, sells, transports, or distrib-
utes marijuana, even if done in a way that is consistent with state
law or authorized by a state license, is nonetheless in violation of
the CSA and remains subject to federal prosecution. In addition,
because marijuana is still a federally-controlled substance, the ap-
plication of various money laundering and banking laws has ham-
pered the ability of commercial marijuana establishments to obtain
the necessary financing and financial services to establish and
grow their businesses.58 On April 19, 2021, the House of Rep-
resentatives passed H.R. 1996, the ‘‘Secure And Fair Enforcement
Banking Act of 2021’’ (the ‘‘SAFE Banking Act of 2021’’) by a vote
of 321–101. This bipartisan bill addresses the barriers affecting
cannabis companies’ access to financial services; however, the bill
does not address the status of cannabis as an illegal substance
under federal law.
1. IMPACT ON MINORITY COMMUNITIES
As noted above, cannabis policies with a disproportionate impact
on minority communities began in the early part of the 20th cen-
tury. Beginning in the 1960s, national policies emphasized a law
enforcement-focused approach that exacerbated problems in cities
throughout the country.59 The War on Drugs amplified these prob-
lems by distorting the statistics that tied drug addiction to in-
stances of crime.60 The national conversation thus shifted away
from eradicating the causes of crime and focused it on punishing
the criminal.61 ‘‘Drug users’’ became synonymous with people of
color. As noted in The Atlantic, ‘‘Shifting public perception in this
way ultimately served to reinforce the ‘necessity’ of Nixon’s drug
war. Once addicts were no longer seen as sick victims of a society
that systematically excluded them, no one would mind when they
were simply locked up. In fact, incarceration was for the nation’s
own good.’’ 62 This ‘‘lock them up’’ mentality continued through the
1980s and 1990s.63
Enforcement of marijuana laws has been a key driver of mass
criminalization in the United States. As noted above, in 2018, there
were over 533,400 marijuana-related arrests.64 Of these, almost
526,000 were arrests for marijuana possession.65 The drug war has
produced profoundly unequal outcomes across racial groups, mani-
fested through significant racial disparities throughout the criminal
justice system.
The higher arrest and incarceration rates for communities of
color do not reflect a greater prevalence of drug use, but rather the
focus on law enforcement on urban areas, lower income commu-
58 See generally Gustav Stickley, The SAFE Banking Act: A Reasonable and Narrowly Tailed
Approach to Addressing Public Safety Concerns and Lack of Financial Services in Today’s Can-
nabis Industry, JD Supra (July 8, 2021) https://www.jdsupra.com/legalnews/the-safe-banking-
act-a-reasonable-and-2393575/.
59 See Emily Dufton, The War on Drugs: How President Nixon Tied Addiction to Crime, THE
ATLANTIC (Mar. 26, 2012), https://www.theatlantic.com/health/archive/2012/03/the-war-on-drugs-
how-president-nixon-tied-addiction-to-crime/254319/.
60 Id.
61 See id.
62 Id. (emphasis in original).
63 Matthew Yglesias, The Real Reason Mass Incarceration Happened, VOX (Apr. 11, 2016),
https://www.vox.com/2016/4/11/11399870/mass-incarceration-cause.
ctelli on DSK11ZRN23PROD with REPORTS
64 See supra notes 62 and 63.
65 See supra note 63.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00030 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
31
nities, and communities of color.66 In fact, nearly 80% of people in
federal prison and almost 60% of people in state prison for drug of-
fenses are Black or Latino.67 In its seminal 2013 report, ‘‘The War
on Marijuana in Black and White,’’ the American Civil Liberties
Union found:
[O]n average, a Black person is 3.73 times more likely
to be arrested for marijuana possession than a white per-
son, even though Blacks and whites use marijuana at simi-
lar rates. Such racial disparities in marijuana possession
arrests exist in all regions of the country, in counties large
and small, urban and rural, wealthy and poor, and with
large and small Black populations. Indeed, in over 96% of
counties with more than 30,000 people in which at least
2% of the residents are Black, Blacks are arrested at high-
er rates than whites for marijuana possession.68
2. COLLATERAL CONSEQUENCES
The collateral consequences of even an arrest for marijuana pos-
session can be devastating, especially if a felony conviction results.
Those arrested can be saddled with a criminal conviction that can
make it difficult or impossible to vote, obtain educational loans, get
a job, maintain a professional license, secure housing, receive gov-
ernment assistance, or even adopt a child.69 These exclusions cre-
ate an often-permanent second-class status for millions of Ameri-
cans. Like drug war enforcement itself, these consequences fall dis-
proportionately on people of color. For non-citizens, a conviction can
trigger deportation, sometimes with almost no possibility of discre-
tionary relief.70 In fact, simple marijuana possession was the
fourth most common cause of deportation for any crime in 2013.71
More than 13,000 people were deported in 2012 and 2013 just for
personal marijuana possession.72
Today, overcriminalized communities continue to suffer the con-
sequences of failed drug policies, even in states that have legalized
marijuana, where arrests have dropped for marijuana crimes.73 Le-
galization has not generated a reduction of the rate at which Black
and Latino people are arrested in these states.74 In fact, many
states have seen an even steeper rise in the percentage of African-
Americans and Latinos having their lives impacted by a marijuana
arrest.75 Two years after decriminalization in Washington, DC, a
66 See Drug Policy Alliance, Race and the Drug War, http://www.drugpolicy.org/issues/race-
and-drug-war.
67 See id.
68 Amer. Civil Liberties Union, THE WAR ON MARIJUANA IN BLACK AND WHITE (June 2013),
at 4.
69 See Drug Policy Alliance, Just a Slap on the Wrist?: The Life-Changing Consequences of a
Marijuana Arrest (Feb. 2016), at http://www.drugpolicy.org/sites/default/files/
DPA_Fact%20sheet_Harms%20of%20Marijuana%20Criminalization_%28Feb.%202016%29.pdf.
70 See Jason Cade, The Plea Bargain Crisis for Noncitizens in Misdemeanor Court, 34
CARDOZO L. REV. 1754 (2013).
71 See Drug Policy Alliance, supra note 77, at 1.
72 See id.
73 See German Lopez, After Legalization, Black People Are Still Arrested at Higher Rates for
Marijuana than White People, VOX (Jan. 29, 2018), https://www.vox.com/policy-and-politics/2018/
1/29/16936908/marijuana-legalization-racial-disparities-arrests.
ctelli on DSK11ZRN23PROD with REPORTS
74 See id.
75 See id.
VerDate Sep 11 2014 06:48 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00031 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
32
Black person was 11 times more likely than a white person to be
arrested for public use of marijuana.76
Public support for making marijuana legal has increased over the
past two decades.77 The resulting trend in state-level legalization
of marijuana has placed states in apparent conflict with federal law
and, as a result, the Justice Department has struggled with how
to continue to uphold federal law in this context. Meanwhile, nu-
merous difficulties have arisen as states seek to develop a frame-
work for a legal cannabis industry without easy access to banking
and credit. Because marijuana is still a controlled substance under
the CSA, the specter of prosecution for participation in the can-
nabis industry looms large, even though medicinal or recreational
marijuana is legal in 33 states and the District of Columbia.
In addition, the collateral consequences suffered by those with
marijuana convictions are numerous and vast. Many criminal jus-
tice advocates argue that expunging marijuana convictions is a nec-
essary addition to any legalization measure.78 Moreover, they be-
lieve that people who have been harmed by marijuana enforcement
should have a place in the burgeoning marketplace created by le-
galization. They further argue that reform efforts should enable
people who have struggled to find employment due to drug convic-
tions to participate meaningfully in the marijuana industry.79 They
contend that excluding people directly impacted by criminalization
from the marijuana industry further entrenches the outsized im-
pact that the War on Drugs has had on communities of color.80
Hearings
For the purposes of clause 3(c)(6)(A) of House Rule XIII, the fol-
lowing hearings were used to develop H.R. 3617: On March 11,
2021, the Crime Subcommittee held a hearing entitled, ‘‘Controlled
Substances: Federal Policies and Enforcement,’’ which included tes-
timony on the harsh impact of current federal laws and policies re-
lated to marijuana and the pressing need for reform. The witnesses
at the hearing were: Nicole M. Austin-Hillery, Executive Director,
US Program, Human Rights Watch; Howard Henderson, Founding
Director, Center for Justice Research, Texas Southern University
and Nonresident Senior Fellow, Governance Studies, Brookings In-
stitution; Derek Maltz, Former Special Agent in Charge, Special
Operations Division, U.S. Department of Justice; and Katharine
Neill Harris, Alfred C. Glassell, III, Fellow in Drug Policy, Rice
University’s Baker Institute for Public Policy.
76 Drug Policy Alliance, FROM PROHIBITION TO PROGRESS: A STATUS REPORT ON MARIJUANA
LEGALIZATION (Jan. 2018), at 31, http://www.drugpolicy.org/sites/default/files/
dpa_marijuana_legalization_report_feb14_2018_0.pdf.
77 See Hannah Hartig & A.W. Geiger, About Six-in-Ten Americans Support Marijuana Legal-
ization, PEW RESEARCH CENTER (Oct. 8, 2018), https://www.pewresearch.org/fact-tank/2018/10/
08/americans-support-marijuana-legalization/.
78 See Sophie Quinton, In These States, Past Marijuana Crimes Can Go Away, PEW CHARI-
TABLE TRUSTS (Nov. 20, 2017), https://www.pewtrusts.org/en/research-and-analysis/blogs/
stateline/2017/11/20/in-these-states-past-marijuana-crimes-can-go-away; Charlotte Resing, Mari-
juana Legalization is a Racial Justice Issue, AMER. CIVIL LIBERTIES UNION (Apr. 20, 2019),
https://www.aclu.org/blog/criminal-law-reform/drug-law-reform/marijuana-legalization-racial-jus-
tice-issue; Margaret Stevenson, Expungement: A Gateway to Work, SARGENT SHRIVER NATIONAL
CENTER ON POVERTY LAW (Apr. 2015), https://www.povertylaw.org/clearinghouse/articles/
expungement.
ctelli on DSK11ZRN23PROD with REPORTS
79 See id.
80 See Resing, supra note 86.
VerDate Sep 11 2014 06:48 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00032 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
33
Last Congress, the Committee’s hearing on ‘‘Marijuana Laws in
America: Racial Justice and the Need for Reform,’’ held on July 10,
2019, discussed a variety of issues relative to the need for reform
of marijuana laws in America, including criminal justice equity
concerns and public health considerations. The witnesses at the
hearing were: G. Malik Burnett, Washington, DC; Marilyn Mosby,
State’s Attorney for Baltimore City; David L. Nathan, Doctors for
Cannabis Regulation; Neal Levine, Chief Executive Officer, Can-
nabis Trade Federation. Subsequently, the Committee reported out
a previous version of this bill, the ‘‘MORE Act of 2020,’’ which later
passed the House by a bipartisan vote of 228–164.
Committee Consideration
On September 30, 2021, the Committee met in open session and
ordered the bill, H.R. 3617, favorably reported as amended, by a
rollcall vote of 26–15, a quorum being present.
Committee Votes
In compliance with clause 3(b) of House Rule XIII, the following
rollcall votes occurred during the Committee’s consideration of H.R.
3617:
1. An amendment by Mr. Tiffany of Wisconsin to change the defi-
nition of ‘‘eligible entities’’ to include individuals ‘‘whose leadership
does not include an individual who has been convicted of an offense
under State or Federal law involving rioting, looting, or destruction
of property,’’ was defeated by a rollcall vote of 15 in favor and 19
against. The vote was as follows:
ctelli on DSK11ZRN23PROD with REPORTS
VerDate Sep 11 2014 06:48 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00033 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
34
Roll Call No. \ 0 Date: _Cl_l_,_0_1_1_1_
COMMITTEE ON THE JUDICIARY
H{.ms, of R,pr,untativ~.s
Amendment# I cANflto r\P- %17
1 I 7111 Co1tir,.u
offered by
•
Rep"rmm NOS PRBs7
Jenold Nadler (NY-10) ,/
Zoe Lofgren (CA-19) ✓
Shoila Jackson Lee (TX-18) ✓
Steve Cohen (TN-09) l ✓
Hank Johnson (GA-04) J
Ted Deutch (FL-22) ✓
Karen Bass (CA-37) I
Hakeem Jeffries (NY-08)
David Cicilline /RJ-01) ✓
PASSED Eric Swalwell (CA-15) J
Ted Lieu (CA-33) ✓
FAILED Jamie Raskin (MD-08)
Pramila Javaoal (WA-07)
Val Demings (FL-IO) ✓
Lou Conea (CA-46) ✓
Marv Gav Scanlon (PA-05) ✓
Svlvia Garcia (TX-29) ✓
Joseoh Neguse (C0-02) ✓
Lucy McBath (GA-06) ✓
Greg Stanton (AZ-09) ✓
~'v!adeleino Dean ( PA-04) ✓
--
Veronica Escobar (TX-16)
Mondaire Jones /NY-17)
Deborah Ross (NC-02) ✓
Cori Bush (M0-01)
.. AYES NOS PRES
Jim Jordan (OH-04) ✓
Steve Chabot (OH-01) ✓
Louie Gohrnert (TX-01) ✓
Danell Issa (CA-50) ✓
Ken Buck (C0-04)
Matt Gaetz !FL-0 l)
Mike Johnson (LA-04)
Andy Biggs (AZ-05) ✓
Tom McC!intock (CA-04)
Greg Steube (FL-17) ✓
Tom Tiffany (W!-07) ✓
Thomas Massie (KY-04) ✓
Sbip Roy (TX-21) ✓
Dan Bishop (NC-09) I ✓ I
Michelle Fischbach (i'vfN-07) ✓
Victoria Soartz (IN-05) ✓
Sc{1tt Fitzgerald (WI-05) ✓
Cliff Bentz (OR-02) ✓
✓-
Bufl<CSS Owens (UT-04)
AYES NOS PRllS.
i
TOTAL \c; 11
41
ctelli on DSK11ZRN23PROD with REPORTS
Insert offset folio 42 here HR276P1.001
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00034 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
35
2. An amendment by Mr. Fitzgerald of Wisconsin to change the
definition of individuals eligible to participate in substance use dis-
order services to exclude individuals convicted of an offense under
section 924(c) of title 18 of the United States Code was defeated by
a rollcall vote of 15 in favor and 20 against. The vote was as fol-
lows:
ctelli on DSK11ZRN23PROD with REPORTS
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00035 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
36
Roll Call No. f1 Date: Pi/ 3 ° I 2./
COMMITTEE ON THE JUDICIARY
Amendment # 2 ( ANJ) to Hit s>J 1 offered by Rep. f,-1 ·;,,n, Id
AYES NOS PRES.
Jerrold Nadler (NY-10) ✓
Zoe Lofaren (CA-19) ✓
Sheila Jackson Lee (TX-18) ,/
Steve Cohen (TN-09) I j
Hank Johnson (GA-04) ✓
Ted Deutch (FL-22) ✓
Karen Bass (CA-3 7) ✓
Hakeem Jeffries (NY-08)
David Cicilline (Rl-0 l) ✓
PASSED Eric Swalwell (CA-15) ✓
Ted Lieu (CA-331 ✓
FAILED Jamie Raskin (MD-08) ✓
Pramila Javapal (WA-07)
Val Dernings (FL-JO) v' '
Lou Con-ea (CA-46) ✓
Marv Gav Scanlon (PA-05) ✓
Svlvia Garcia (TX-29) ✓
Joseoh Ne1rnse (C0-02) J
Lucy McBath (GA-06) ✓
Greg Stanton (AZ-09) ✓
Madeleine Dean (PA-04) ✓
Veronica Escobar (TX-16)
Mondaire Jones (NY-17)
Deborah Ross (NC-02) ✓
Cori Bush (M0-01)
AYES NOS PRES
Jim Jordan (OH-04) ✓
Steve Chabot (OH-0 l) ✓ I
Louie Gohmert (TX-0 l) ' ✓
Dan-ell Issa (CA-50) ✓
Ken Buck (C0-04) I
Matt Gaetz (FL-0 l)
Mike Johnson (LA-04)
~ - Biggs (AZ-05) ✓
Tom McClintock (CA-04) ✓
Greg Steube (FL-I 7) ✓
Torn Tiffany (Wl-07) ✓
Thomas Massie (KY-04) ✓
Chip Rov (TX-21) ✓ I
Dan Bishop (NC-09) ,I
Michelle Fischbach (MN-07) ,/
Victoria Soartz (IN-05)
Scott Fitzgerald (WI-05) ✓
Cliff Bentz (OR-02) ✓
Burness Owens (UT-04) ✓
AYES NOS PRES.
TOTAL 1<; 'to
43
ctelli on DSK11ZRN23PROD with REPORTS
Insert offset folio 44 here HR276P1.002
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00036 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
37
3. An amendment by Mr. Fitzgerald of Wisconsin to amend the
bill’s definition of an ‘‘individual adversely impacted by the War on
Drugs,’’ by striking the word ‘‘reports’’ and replacing it with ‘‘has’’
was defeated by a rollcall vote of 16 in favor and 20 against. The
vote was as follows:
ctelli on DSK11ZRN23PROD with REPORTS
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00037 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
38
Roll Call c'io. \ i Date: OJ I 3 O / Uc
COMMITTEE O:'i THE JUDICIARY
Houu of R1pr,s1n.tativt1s
117r• Co,igrns
Amendment# ! ~~} •_ 11 ... offered by R~
0
A
14-1-'),;Wlt lei
PRES:
Jerrold Nadler (NY-! 0) ✓
Zoe Lofgren (CA-19) ✓
Sheila Jackson Lee ffX-18) ✓
Steve Cohen (TN-09) ✓ i
Hank Johnson (GA-04)
Ted Deutch (FL-22) ~-----7
Karen Bass (CA-37) ✓
Hakeem Jeffries (l'IY-08)
David Cicil!ine (Rl-0 l) ✓
PASSED Eric Swalwell (CA-15) ✓
Ted Lieu (CA-33) ✓
FAILED Jamie Raskin (MD-08) ✓
Pramila Javaoal /WA-07)
l
Val Demings (FL-10) ✓
Lou Correa (CA-46) ✓
Marv Gav Scanlon /PA-05) ✓
Sylvia Garcia (TX-29) ✓
Joseph Neguse (CO-02) ✓
Lucv Mc Bath (GA-06) ✓
Greg Stanton (AZ-09) ✓
Madeleine Dean (PA-04) ✓
Veronica Escobar (TX-16)
Mondaire Jones (NY-17)
Deborah Ross (NC-02) ✓ I
Cori Bush (MO-01)
AYES NOS PRES
Jim Jordan (OH-04) J
Steve Chabot (OH-0 l) ✓
Louie Gohmert (TX-0 l) ✓
Danell Issa (CA-50) ✓
Ken Buck (CO-04) ✓
Matt Gaetz (FL-0 l) I
Mike Johnson (LA-04) I
Andy Biggs (AZ-05) ✓
Tom McClintock (CA-04) ✓
Greg Steube (FL-17) J
1'oo1 Tiffanv (Wl-07) ✓
Thomas Massie (KY-04) I ✓
Chip Roy(TX-21) ✓
Dan Bishop /NC-09) ✓
Michelle Fischbach (:VIN-07) j
Victoria Spartz (IN-05)
~ t t Fitzgerald (Wl-05)
Cliff Bentz (OR-02)
✓
✓
.
Burgess Owens (UT-04) -,/
AYES NOS PRES,
TOTAL
Ib 2-,0
I
45
ctelli on DSK11ZRN23PROD with REPORTS
Insert offset folio 46 here HR276P1.003
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00038 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
39
4. An amendment by Mr. Bishop of North Carolina was offered
to add a provision to the bill related to nondiscrimination ‘‘on the
basis of the COVID–19 vaccination status of an individual or the
advocacy by an individual or entity with respect to any COVID–19
vaccination mandate’’ was defeated by a rollcall vote of 18 in favor
and 21 against. The vote was as follows:
ctelli on DSK11ZRN23PROD with REPORTS
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00039 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
40
Roll Call No. \3 Date: "I I 3 o I >../
COMlvIITTEE ON THE JUDICIARY
Amendment#. "i /ANJ) to ~·II'. Jbl 7 offered by Rep.
M•,~
Jerrold Nadler /NY -1 ())
Zoe Lofgren (CA-19)
Sheila Jackson Lee fTX-18)
Steve Cohen (TN-09) ✓ I
Hank Johnson (GA-04) ✓
'
Ted Deutch (FL-22)
Karen Bass (CA-37) J I
Hakeem Jeffries (NY-08)
David Cicillinc (RI-0 I) ,J
PASSED Eric Swalwell (CA-151 ✓
Ted Lieu (CA-33) ✓
FAILED Jamie Raskin (MD-08) J
Pramila Jayanal /WA-07) ✓
Val Demings (FL- I0) ✓
Lou Correa (CA-46) ✓
Mary Gay Scanlon (PA-05) ✓
Sylvia Garcia (TX-29) ✓
Joseoh Neguse (C0-02) J
Lucv McBath (GA-06) ✓
Greg Stanton (AZ-09) ✓
Madeleine Dean (PA-04) ✓
Veronica Escobar (TX-16) -✓
Mondaire Jones (l';'Y-1 7)
Deborah Ross /NC-02) j I
Cori Bush (MO-01)
AYES NOS PRES
Jim Jordan (OH-04) ✓
Steve Chabot (OH-0 l) ✓
Louie Gohmert (TX-0 l) ✓
Darrell Issa (CA-50) ✓
Ken Buck (CO-04)
Matt Gaetz (FL-0 l) ✓
Mike Johnson (LA-04) ✓
I Andv Biggs (AZ-05) ✓
Tom McClintock (CA-04) ✓
Greg Steube (FL-17) J
Tom Tiffany (W[-07) ✓
Thomas Massie (KY-04) ✓
Chip Roy (TX-21) ✓
Dan Bishon iNC-09)
Michelle Fischbach (MN-07)
Victoria Spartz (IN-05)
"./
✓
Scott Fitzgerald (Wl-05) ✓
~
--
Cliff Bentz (OR-021
Burgess Owens (UT-04) ✓
AYES NOS PRES.
TOTAL
l'i '21
47
ctelli on DSK11ZRN23PROD with REPORTS
Insert offset folio 48 here HR276P1.004
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00040 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
41
5. A motion to report H.R. 3617, as amended, favorably was
agreed to by a rollcall vote of 26 in favor and 15 against. The vote
was as follows:
ctelli on DSK11ZRN23PROD with REPORTS
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00041 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
42
Roll Call No. \ 1-j Date: "I I 3 o I ;LJ
COMMITTEE ON THE JUDICIARY
11
Final Passage on:
"' H/1 AYHS NOS PRES
Jerrold Nadler (NY-10) ✓
~ . Lofgren (CA-19) ✓
Sheila Jackson Lee (TX-18) ✓
Steve Cohen (TN-09) ✓
Hank Johnson (GA-04) ✓
Ted Deutch (FL-22) ✓
Karen Bass /CA-37) ✓
Hakeem Jeffries <NY-08) ✓
David Cicilline (RJ-01) ✓
PASSED Eric Swalwell (CA-151 ✓
Ted Lieu /CA-33) ✓
FAILED Jamie Raskin (MD-08) j
Pramila .layapal (WA-07) ✓
Val Demings (FL-10) ✓
Lou Correa (CA-46) ,I
Marv Gav Scanlon ( P A-05) J I
Sylvia Garcia (TX-29) ✓ l
Joseph Neguse (CO-02) j
Lucv McBath {GA-06) ✓
Greg Stanton (AZ-09) ✓
Madeleine Dean {PA-04) ✓
Veronica Escobar (TX-16) ✓
Mondaire Jones (NY- l 7) ✓
Deborah Ross (NC-02)
Cori Bush (MO-01)
✓
'
AYES NOS PRES
Jim Jordan (OH-04) I ✓
Steve Chabot (OH-OJ) ./
Louie Gohmert (TX-01) ✓
Darrell Issa (CA-50) J
Ken Buck (CO-04)
Matt Gaetz (FL-0 J) ✓
Mike Johnson (LA-04) ✓
Andy B~(AZ-05) ✓
Tom McC!intock (CA-04) ✓
Greg Steube (FL-17)
Tom Tiffanv (Wl-07) ./
Thomas Massie (KY-04) ✓
Chip Roy (TX-21) J
Dan Bishon (NC-09) ✓
Michelle Fischbach fMN-07) ✓
Victoria Spartz (lN-05) ✓
Scott Fitzgerald (Wl-05) ✓
Cliff Bentz (OR-02) ✓
Burgess Owens (UT-04) ✓
AYES NOS PRES.
TOTAL
-i<- l"i !
49
ctelli on DSK11ZRN23PROD with REPORTS
Insert offset folio 50 here HR276P1.005
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00042 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
43
Committee Oversight Findings
In compliance with clause 3(c)(1) of House Rule XIII, the Com-
mittee advises that the findings and recommendations of the Com-
mittee, based on oversight activities under clause 2(b)(1) of House
Rule X, are incorporated in the descriptive portions of this report.
Committee Estimate of Budgetary Effects
Pursuant to clause 3(d)(1) of House Rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of the
Congressional Budget Office pursuant to section 402 of the Con-
gressional Budget Act of 1974.
New Budget Authority and Congressional Budget Office
Cost Estimate
Pursuant to clause 3(c)(2) of House Rule XIII and section 308(a)
of the Congressional Budget Act of 1974, and pursuant to clause
(3)(c)(3) of House Rule XIII and section 402 of the Congressional
Budget Act of 1974, the Committee has requested but not received
from the Director of Congressional Budget Office a budgetary anal-
ysis and a cost estimate of this bill.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of House Rule XIII, no provision of
H.R. 3617 establishes or reauthorizes a program of the federal gov-
ernment known to be duplicative of another federal program.
Performance Goals and Objectives
The Committee states that pursuant to clause 3(c)(4) of House
Rule XIII, H.R. 3617 would be consistent with its general goals and
objectives by removing marijuana from the schedule of controlled
substances, expunging federal marijuana-related convictions, and
creating programs within the Department of Justice and the Small
Business Administration to ensure the benefits of the excise tax on
sales of marijuana products imposed pursuant to H.R. 3617 are
made available for individuals and communities most adversely im-
pacted by the War on Drugs.
Advisory on Earmarks
In accordance with clause 9 of House Rule XXI, H.R. 3617 does
not contain any congressional earmarks, limited tax benefits, or
limited tariff benefits as defined in clause 9(d), 9(e), or 9(f) of
House Rule XXI.
Section-by-Section Analysis
The following discussion describes the bill as reported by the
Committee as an amendment in the nature of a substitute.
Sec. 1. Short Title. The title of this Act is the ‘‘Marijuana Oppor-
tunity Reinvestment and Expungement Act’’ or the ‘‘MORE Act.’’
Sec. 2. Findings. Based on Representative Barbara Lee’s Mari-
juana Justice Act, Section 2 sets forth findings pertaining to the
ctelli on DSK11ZRN23PROD with REPORTS
purpose of the legislation.
VerDate Sep 11 2014 06:48 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00043 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
44
Sec. 3. Decriminalization of Cannabis. Section 3 would decrimi-
nalize cannabis by removing two items—marihuana and
tetrahydrocannabinols—from Schedule I of the Controlled Sub-
stances Act (CSA) along with a series of conforming amendments.
This section would make the descheduling of cannabis retroactive,
including cases involving juvenile adjudications.
Section 3 would also direct the Attorney General to finalize a
rule, no later than 180 days after enactment of the MORE Act, re-
moving marihuana and tetrahydrocannabinols from the schedules
of controlled substances, for the purposes of the CSA. The con-
forming amendments in this section clarify that, in the interest of
safety, the Secretary of Transportation, and the Coast Guard shall
continue to prescribe regulations setting standards for testing or
medical certifications to detect illegal use of or the unauthorized
presence marijuana and other substances by safety-sensitive em-
ployees regulated by the Federal Aviation Administration, the Fed-
eral Motor Carrier Safety Administration, the Federal Railroad Ad-
ministration, the Federal Transit Administration and the Pipeline
and Hazardous Materials Safety Administration, or the United
States Coast Guard.
Section 3 would also mandate that the Secretary of Health and
Human Services hold not less than one public meeting, not later
than one year after the date of enactment of the MORE Act, to ad-
dress the regulation, safety, manufacturing, product quality, mar-
keting, labeling, and sale of products containing cannabis or can-
nabis-derived compounds.
The bill includes provisions to ensure that employees working in
safety-sensitive transportation positions regulated by the Federal
government would still be tested for the illegal or unauthorized use
of alcohol, marijuana, or other substances. The section contains a
provision ensuring that the Department of Transportation and the
Coast Guard may continue to issue regulations and test for the un-
authorized presence of or illegal use of marijuana by certain trans-
portation employees in sensitive-safety positions. Existing and on-
going drug testing of federal employees by federal agencies remains
unchanged.
In addition, the bill includes a provision stating that the FDA
can still issue regulations on cannabis products.
Sec. 4. Demographic Data of Cannabis Business Owners and Em-
ployees. Section 4 would direct the Bureau of Labor Statistics to
regularly compile, maintain, and make public data on the demo-
graphics (i.e., age, race and ethnicity, sex, etc.) of the individuals
who are business owners in the cannabis industry and individuals
who are employed in the cannabis industry. Section 4 would pre-
serve confidentiality by ensuring that no names, addresses, or
other identifying information collected under this section are made
available to the public.
Sec. 5. Creation of Opportunity Trust Fund and Imposition of
Taxes with Respect to Cannabis Products. The bill creates a com-
prehensive tax regime for cannabis, including excise and occupa-
tional taxes.
This section would establish an excise tax regime on cannabis
products produced in, or imported into, the United States by add-
ing a new chapter, chapter 56, relating to ‘‘Cannabis Products.’’
ctelli on DSK11ZRN23PROD with REPORTS
This section would also establish an occupational tax on producers
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00044 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
45
and exporters of cannabis products. Net revenues from these taxes
are designated for a newly-established Opportunity Trust Fund.
Subsection 5(a)—Establishment of Trust Fund. Subsection 5(a)
establishes the Opportunity Trust Fund, without a request for new
appropriations. This trust fund shall be funded by the net revenues
generated by the tax on cannabis products, and the tax on pro-
ducers and exporters, established in subsection 5(b) of this legisla-
tion. The funds of this trust fund shall be available, without fur-
ther appropriation, as follows:
• 50% to the Attorney General to carry out the Community
Reinvestment Grant Program, as established by this legisla-
tion.
• 10% to the Attorney General to provide substance use
treatment services to 501(c)(3) organizations with experience
providing relevant services to individuals adversely impacted
by the War on Drugs.
• 20% to the Small Business Administrator to carry out the
Cannabis Opportunity Program, as established by this legisla-
tion.
• 20% to the Small Business Administrator to carry out the
Equitable Licensing Grant Program, as established by this leg-
islation.
Subsection 5(b)—Cannabis Revenue and Regulation Act. This
subsection: (1) establishes a tax on cannabis products, (2) estab-
lishes bond and permitting rules for producers of cannabis prod-
ucts, (3) establishes an occupational tax, (4) provides certain rules
related to recordkeeping, packaging and labeling, as well as other
operations matters, and (5) provides penalties for failure to comply
with these rules.
Rates
First, this section imposes a tax on any cannabis product pro-
duced or imported into the United States for the first five calendar
years after this legislation becomes effective equal to:
• 5% of the sale price at removal for years one and two,
• 6% of the sale price at removal for year three,
• 7% of the sale price at removal for year four, and
• 8% of the sale price at removal for year five.
Beginning after the fifth year, the tax due on cannabis products
shall be the applicable equivalent amount. For any THC-measur-
able cannabis product, the applicable equivalent amount is 8% of
the prevailing sales price for tetrahydrocannabinol (THC) during
the prior year (as determined by the Secretary), multiplied by the
THC content in the cannabis product. For cannabis products that
are not THC-measurable, the applicable equivalent amount is 8%
of the sale price of cannabis flowers and buds during the prior year
(as determined by the Secretary of the Treasury), multiplied by the
weight of the product. The Secretary determines what products are
THC-measurable cannabis products.
A ‘‘cannabis product’’ generally includes any article containing
(or consisting of) cannabis. However, industrial hemp and FDA-ap-
proved articles containing cannabis are excepted. In addition, can-
nabis products used exclusively for scientific research, by a propri-
ctelli on DSK11ZRN23PROD with REPORTS
etor of a cannabis production facility for research, development, or
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00045 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
46
testing, or by any United States, state, or local government agency
for non-consumption purposes, are exempt from tax.
Cannabis produced solely for personal or family use (and not for
sale) are also exempt from tax and the requirements set forth by
this newly-created subchapter.
Permits, Bonding, and Payment of Tax
The excise tax on cannabis products is paid by the producer or
importer of the product. Producers and importers must obtain per-
mits from the federal government before commencing business. In
addition, they must secure a bond for their cannabis production fa-
cilities.
In general, the tax is due when the cannabis product is removed
from bond. In the case of cannabis products transferred amongst
bonded premises of producers and export warehouse proprietors, no
tax is owed at the time of transfer, but each bonded transferee
shall become liable for the tax on such product upon receipt of such
product. In the case of cannabis products which are released in
bond from customs custody to transfer to a bonded premises of a
producer, the transferee shall become liable for the tax on such
product upon receipt of such product.
Taxes on any cannabis products removed from bond by a tax-
payer shall be paid no later than 14 days after the semi-monthly
period during which such products are removed from bond. In the
case of cannabis products imported into the United States, taxes on
such products shall be paid no later than 14 days after the semi-
monthly period during which such products are entered into the
customs territory of the United States, or in the event of entry for
warehousing, 14 days after the semi-monthly period during which
such products are removed from the first such warehouse. Foreign
trade zones shall be treated as a single customs warehouse for pur-
poses of this subsection.
In the case of products sold at below the fair market price, sold
under circumstances otherwise than arm’s length, or removed with-
out sale or in a circumstance where the price for which products
sold cannot be determined, the tax under this chapter shall be de-
termined based on the price for which such articles are sold in the
course of ordinary trade as determined by the Secretary.
Occupational Taxes
In addition to the excise tax, an occupational tax is also estab-
lished. Any person engaged in business as a producer or an export
tax proprietor shall pay a tax of $1,000 per year for each premises
of which such businesses is carried on. Any person who willfully
fails to do so shall be fined not more than $5,000 or imprisoned for
no more than two years for each such offense.
Recordkeeping, Packaging, Labeling, etc.
Subsection 5(b) also provides rules related to recordkeeping,
packaging and labeling, as well as other operations matters. Rec-
ordkeeping rules require that every producer, importer, and export
warehouse shall keep a true and accurate inventory, subject to
verification by an internal revenue officer, and make reports and
keep records in such a manner as prescribed by the Secretary of
ctelli on DSK11ZRN23PROD with REPORTS
the Treasury.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00046 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
47
Certain labeling requirements are also provided. Cannabis prod-
ucts labeled for export may be removed from the premises of a pro-
ducer or export warehouse if such products are transferred or re-
moved under bond. Cannabis products labeled for export may not
be sold for domestic consumption in the United State unless such
products are removed from their export packaging and repackaged
by the original producers into new packaging that does not include
an export label.
Cannabis products removed from bond by producers and export
warehouse proprietors for shipment to a foreign country, Puerto
Rico, the US Virgin Islands, or other US territory, are not subject
to tax.
Penalties
Any person who illegally produces or imports cannabis products
is still liable for the tax. Any person who, with intent to defraud
the United States, purchases or sells cannabis product after re-
moval for which tax has not been paid shall be liable for a tax
equal to the tax on the products.
Any person who willfully omits, neglects or refused to comply
with a duty imposed on them by this chapter, or does anything pro-
hibited by this chapter, shall, in addition to any other penalty pro-
vided by this title, be liable to pay a penalty of $10,000.
Whoever fails to pay any tax imposed by this chapter at the time
prescribed shall, in addition to any other penalty provided in this
title, be liable to pay a penalty of 10% of taxes unpaid. Any person
who sells, receives, or relands cannabis labeled for export within
the United States, or otherwise aids or abets such activity, shall be
liable for a penalty equal to the greater of $10,000 or 10 times the
amount of tax imposed by this chapter. All such cannabis products
and related vessels, vehicles, and aircrafts used in such relanding
shall be forfeited to the United Stated and destroyed.
Any person who, with intent to defraud the United States, en-
gages in a business as a cannabis enterprise without obtaining the
permit required; fails to keep adequate records or keeps false
records; refuses to pay or attempts to evade tax; sells or transfers
cannabis products outside of the regulations prescribed under this
chapter; or purchases, receives, or possesses, with intent to redis-
tribute or resell, any cannabis products upon which tax has not
been paid, shall be fined not more than $10,000 or imprisoned not
more than five years, or both, for each such offense. Any person
found in possession of articles in violation shall be subject to tax
on such articles.
This provision also would require a study by the Secretary of the
Treasury on the characteristics of the cannabis industry, with rec-
ommendations to improve the regulation of the industry and re-
lated taxes. In addition, the Secretary would have ongoing report-
ing requirements related to the determination of the applicable tax
rate for cannabis and THC.
Sec. 6. Opportunity Trust Fund Grant Programs. Section 6 would
establish programs in the Department of Justice and the Small
Business Administration (SBA) to be funded from the Opportunity
Trust Fund established in Section 5 of the bill. The bill now targets
the benefits of the Opportunity Trust Fund to those individuals
ctelli on DSK11ZRN23PROD with REPORTS
with prior cannabis convictions and their families, while allowing
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00047 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
48
programs focused on substance use disorders treatment and related
services remain available to serve individuals with convictions for
controlled substances other than cannabis.
Subsection 6(a)—Cannabis Justice Office; Community Reinvest-
ment Grant Program. Subsection 6(a) would create a Cannabis Jus-
tice Office (CJO), with a Director (appointed by, and who would re-
port to, the Assistant Attorney General for the Office of Justice
Programs). The Director would be exclusively assigned to the CJO.
The CJO would administer the Community Reinvestment Grant
Program.
The Community Reinvestment Grant Program would fund eligi-
ble non-profit community organizations to provide a variety of serv-
ices for individuals adversely impacted by the War on Drugs (as de-
fined in subsection 6(b)), to include job training, reentry services,
legal aid for civil and criminal cases (including for expungement of
cannabis convictions), among others. The Community Reinvestment
Grant Program would separately fund eligible non-profit commu-
nity organizations to administer substance use disorder services for
individuals adversely impacted by the War on Drugs. These sub-
stance use disorder services would also be available to individuals
arrested for or convicted of the sale, possession, use, manufacture,
or cultivation of a controlled substance other than cannabis (except
for a conviction involving distribution to a minor).
Subsection 6(b)—Cannabis Restorative Opportunity Program; Eq-
uitable Licensing Grant Program. Subsection 6(b) would direct the
SBA to establish and carry out a Cannabis Restorative Opportunity
Program and an Equitable Licensing Grant Program. Eligible enti-
ties under these two SBA programs would be States and localities
that (1) have taken steps to create an automatic process for the
expungement, destruction, or sealing of criminal records for can-
nabis offenses and (2) have taken steps to eliminate violations or
other penalties for persons still under State or local criminal super-
vision for a cannabis-related offense or violation for conduct now
lawful under State or local law.
Under the Cannabis Restorative Opportunity Program, funds
would be made available for loans to assist small business concerns
that are owned and controlled by individuals adversely impacted by
the War on Drugs in eligible States and localities. Under the Equi-
table Licensing Grant Program, funds would be made available to
eligible States and localities to develop and implement equitable
cannabis licensing programs that minimize barriers to cannabis li-
censing and employment for individuals adversely impacted by the
War on Drugs. These individuals are defined in this section as
those: (1) who have had an income below 250 percent of the Fed-
eral Poverty level for at least 5 of the past 10 years, and (2) who
have been arrested for the sale, possession, use, manufacture, or
cultivation of cannabis (except for a conviction involving distribu-
tion to a minor), or whose parent, sibling, spouse, or child has been
arrested for or convicted of such an offense.
This section would also require the GAO, in consultation with
the SBA, to conduct a study on the individuals and entities receiv-
ing assistance under these newly-established SBA programs. The
study shall include the types of assistance by state as well as a de-
scription of the SBA’s efforts to increase access to capital for can-
ctelli on DSK11ZRN23PROD with REPORTS
nabis-related small business concerns owned and controlled by so-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00048 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
49
cially and economically disadvantaged individuals, individuals ad-
versely impacted by the War on Drugs as well as the racial, ethnic,
economic and gender composition of the eligible state or locality.
Sec. 7. Availability of Small Business Administration Programs
and Services to Cannabis-Related Legitimate Businesses and Serv-
ice Providers. Section 7 would ensure cannabis-related legitimate
businesses and service providers are not prohibited from having ac-
cess to: (1) services from Small Business Development Centers; (2)
services from Women’s Business Centers; (3) services from the
SCORE program; (4) services from Veteran Business Outreach
Centers; (5) loan guarantees under the Loan Guaranty Program in
section 7(a) of the Small Business Act; (6) assistance under SBA’s
Disaster Assistance Program; or (7) assistance under SBA’s
Microloan program from intermediaries participating in SBA’s
Microloan program. Section 7 would also prohibit the SBA from de-
clining to provide a loan guarantee under the 504/Certified Devel-
opment Company to an otherwise eligible State or local develop-
ment company solely because such State or local development com-
pany provides financing to an entity that is a cannabis-related le-
gitimate business or service provider. For purposes of this section
‘‘cannabis’’ means all parts of the plant Cannabis sativa L, whether
growing or not, seeds, resin, and compounds, but does not include
hemp, the mature stalks of Cannabis sativa L., products from such
stalks or sterilized seeds, or related approved drugs or licensed bio-
logical products.
Sec. 8. No Discrimination in the Provision of a Federal Public
Benefit on the Basis of Cannabis. Section 8 would make clear that
no person may be denied a Federal public benefit on the basis of
any use or possession of cannabis, or on the basis of a conviction
or adjudication of juvenile delinquency for a cannabis offense. In
addition, federal agencies would be precluded from using past or
present cannabis or marijuana use as criteria for granting, deny-
ing, or rescinding a security clearance.
Sec. 9. No Adverse Effect for Purposes of the Immigration Laws.
Section 9 would ensure that cannabis is not considered a controlled
substance for purposes of the immigration laws, and it would estab-
lish that no alien may be denied any benefit or protection under
the immigration laws, regardless of whether the conduct, finding,
admission, addiction or abuse, arrest, conviction, or juvenile adju-
dication relating to cannabis occurred before, on, or after the effec-
tive date of the MORE Act. Section 9 would define cannabis in the
same manner as under Section 7 and make a series of conforming
amendments striking marihuana from the Immigration and Na-
tionality Act.
Sec. 10. Resentencing and Expungement. Section 10 has different
expungement and sentencing review procedures for individuals (1)
who have completed their Federal sentences or adjudications of ju-
venile delinquency and are no longer under court supervision (i.e.,
‘‘not under a criminal justice sentence’’) and (2) who are still serv-
ing their Federal sentences or adjudications or are otherwise under
court supervision (i.e., ‘‘under a criminal justice sentence’’). Section
10 would ensure the appointment of counsel for indigent individ-
uals seeking expungement or sentencing review. Individuals who
ctelli on DSK11ZRN23PROD with REPORTS
received an aggravating role adjustment pursuant to United States
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00049 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
50
Sentencing Guideline 3B1.1(a) in relation to a federal cannabis con-
viction would be ineligible for expungement under the bill.
Subsection 10(a)—Expungement of Non-Violent Federal Cannabis
Offense Convictions for Individuals Not Under a Criminal Justice
Sentence. For individuals not under a criminal justice sentence,
subsection 10(a) would direct each Federal district, not later than
one year after enactment of the MORE Act, to order the
expungement of each conviction and juvenile adjudication for a can-
nabis offense entered by each court in the district, retroactive to
the effective date of the Controlled Substances Act (May 1, 1971).
However, any individual ‘‘not under a criminal justice sentence’’
would have a right to petition the court for expungement at any
point after the enactment of the MORE Act (e.g., if any such indi-
vidual would need or desire expungement earlier than one year
after enactment, or if a court fails to pursue expungement where
an individual believes they are eligible). Subsection 10(a) would
also direct the court to order the expungement of any associated ar-
rests. Records expunged under subsection 10(a) would be sealed
and could only be made available by further order of the court. Fi-
nally, subsection 10(a) would direct that each Federal district, to
the extent practicable, notify each individual whose conviction or
juvenile adjudication has been expunged about such expungement
and the effect of the expungement.
Subsection 10(b)—Sentencing Review for Individuals Under a
Criminal Justice Sentence. For individuals still under a criminal
justice sentence, subsection 10(b) would direct the district court
that imposed the sentence or disposition to hold a sentencing re-
view hearing. Sentencing review could be initiated by the indi-
vidual, the Director of the Bureau of Prisons, the attorney for the
Government, or the court. Subsection 10(b) would direct courts to
expunge each conviction or adjudication of juvenile delinquency and
any associated arrests; vacate any existing sentence or disposition
of juvenile delinquency and, if applicable, impose any remaining
sentence as if the MORE Act (and its amendments) were in effect
at the time the offense was committed; and order all records that
have been expunged or vacated under subsection 10(b) be sealed
and only be made available by further order of the court.
Subsection 10(c)—Effect of Expungement. In the case of an
expungement under subsection 10(a) or 10(b), the effect of the
expungement would be the same: an individual may treat an ex-
punged arrest, conviction, or juvenile delinquency adjudication as
if it never occurred and the individual would be immune from civil
or criminal penalties for perjury, false swearing, or false state-
ments, for failing to disclose the expunged arrest, conviction, or ju-
venile delinquency adjudication.
Subsection 10(d)—Exception. Under subsection 10(d), individuals
who received an aggravating role adjustment pursuant to United
States Sentencing Guideline 3B1.1(a) in relation to a federal can-
nabis conviction would be ineligible for expungement under the bill.
Subsection 10(e)—Definitions. This subsection sets forth the defi-
nitions to be used in the expungement provisions of the bill—spe-
cifically, ‘‘Federal cannabis offense,’’ ‘‘expunge,’’ and ‘‘under a crimi-
nal justice sentence.’’
Subsections 10(f) and 10(g)—Study and Report. Subsection (f)
ctelli on DSK11ZRN23PROD with REPORTS
would direct that the Comptroller General, in consultation with the
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00050 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
51
Secretary of Health and Human Services, conduct a demographic
study of the individuals convicted of a Federal cannabis offense, in-
cluding information about the age, race, ethnicity, sex, and gender
identity of those individuals. Subsection (g) would direct the Comp-
troller General to report to Congress the results of the study in
subsection (f), no later than 2 years after enactment of the MORE
Act.
Sec. 11. References in Existing Law to Marijuana or Marihuana.
Section 11 inserts the term ‘‘cannabis’’ wherever the term ‘‘mari-
juana’’ (or ‘‘marihuana’’) appears in existing law.
Sec. 12. Severability. Section 12 provides that if any provision of
the MORE Act is held to be unconstitutional, the remainder of the
Act and its application to any other person or circumstances will
not be affected.
Sec. 13. Cannabis Offense Defined. Section 13 defines a ‘‘cannabis
offense’’ as a criminal offense related to cannabis that (1) under
Federal law, is no longer punishable pursuant to the MORE Act (or
its amendments) and (2) under State law, is no longer an offense
or was designated a lesser offense, or whose penalty was reduced
under State law pursuant to or following the adoption of a State
law authorizing the sale or use of cannabis.
Sec. 14. Rulemaking. Section 14 would direct the Department of
the Treasury, the Department of Justice, and the Small Business
Administration, not later than one year after the enactment of the
MORE Act, to issue or amend any rules, standard operating proce-
dures, and other legal or policy guidance necessary to carry out im-
plementation of the MORE Act. After the one-year period, Section
14 would prohibit the issuance of sub-regulatory guidance without
60-day notice to the appropriate Congressional committee.
Sec. 15. Societal Impact of Marijuana Legalization Study. Section
15 would direct the Comptroller General to conduct a study and re-
port to Congress concerning the societal impacts of the legalization
of recreational cannabis by States.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italics,
and existing law in which no change is proposed is shown in
roman):
CONTROLLED SUBSTANCES ACT
TITLE II—CONTROL AND ENFORCEMENT
PART A—SHORT TITLE; FINDINGS AND DECLARATION; DEFINITIONS
* * * * * * *
DEFINITIONS
SEC. 102. As used in this title:
(1) The term ‘‘addict’’ means any individual who habitually uses
any narcotic drug so as to endanger the public morals, health, safe-
ctelli on DSK11ZRN23PROD with REPORTS
ty, or welfare, or who is so far addicted to the use of narcotic drugs
VerDate Sep 11 2014 06:48 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00051 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
52
as to have lost the power of self-control with reference to his addic-
tion.
(2) The term ‘‘administer’’ refers to the direct application of a
controlled substance to the body of a patient or research subject
by—
(A) a practitioner (or, in his presence, by his authorized
agent), or
(B) the patient or research subject at the direction and in the
presence of the practitioner,
whether such application be by injection, inhalation, ingestion, or
any other means.
(3) The term ‘‘agent’’ means an authorized person who acts on be-
half of or at the direction of a manufacturer, distributor, or dis-
penser; except that such term does not include a common or con-
tract carrier, public warehouseman, or employee of the carrier or
warehouseman, when acting in the usual and lawful course of the
carrier’s or warehouseman’s business.
(4) The term ‘‘Drug Enforcement Administration’’ means the
Drug Enforcement Administration in the Department of Justice.
(5) The term ‘‘control’’ means to add a drug or other substance,
or immediate precursor, to a schedule under part B of this title,
whether by transfer from another schedule or otherwise.
(6) The term ‘‘controlled substance’’ means a drug or other sub-
stance, or immediate precursor, included in schedule I, II, III, IV,
or V of part B of this title. The term does not include distilled spir-
its, wine, malt beverages, or tobacco, as those terms are defined or
used in subtitle E of the Internal Revenue Code of 1954.
(7) The term ‘‘counterfeit substance’’ means a controlled sub-
stance which, or the container or labeling of which, without author-
ization, bears the trademark, trade name, or other identifying
mark, imprint, number, or device, or any likeness thereof, of a
manufacturer, distributor, or dispenser other than the person or
persons who in fact manufactured, distributed, or dispensed such
substance and which thereby falsely purports or is represented to
be the product of, or to have been distributed by, such other manu-
facturer, distributor, or dispenser.
(8) The terms ‘‘deliver’’ or ‘‘delivery’’ mean the actual, construc-
tive, or attempted transfer of a controlled substance or a listed
chemical, whether or not there exists an agency relationship.
(9) The term ‘‘depressant or stimulant substance’’ means—
(A) a drug which contains any quantity of barbituric acid or
any of the salts of barbituric acid; or
(B) a drug which contains any quantity of (i) amphetamine
or any of its optical isomers; (ii) any salt of amphetamine or
any salt of an optical isomer of amphetamine; or (iii) any sub-
stance which the Attorney General, after investigation, has
found to be, and by regulation designated as, habit forming be-
cause of its stimulant effect on the central nervous system; or
(C) lysergic acid diethylamide; or
(D) any drug which contains any quantity of a substance
which the Attorney General, after investigation, has found to
have, and by regulation designated as having, a potential for
abuse because of its depressant or stimulant effect on the cen-
ctelli on DSK11ZRN23PROD with REPORTS
tral nervous system or its hallucinogenic effect.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00052 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
53
(10) The term ‘‘dispense’’ means to deliver a controlled substance
to an ultimate user or research subject by, or pursuant to the law-
ful order of, a practitioner, including the prescribing and admin-
istering of a controlled substance and the packaging, labeling, or
compounding necessary to prepare the substance for such delivery.
The term ‘‘dispenser’’ means a practitioner who so delivers a con-
trolled substance to an ultimate user or research subject.
(11) The term ‘‘distribute’’ means to deliver (other than by ad-
ministering or dispensing) a controlled substance or a listed chem-
ical. The term ‘‘distributor’’ means a person who so delivers a con-
trolled substance or a listed chemical.
(12) The term ‘‘drug’’ has the meaning given that term by section
201(g)(1) of the Federal Food, Drug, and Cosmetic Act.
(13) The term ‘‘felony’’ means any Federal or State offense classi-
fied by applicable Federal or State law as a felony.
(14) The term ‘‘isomer’’ means the optical isomer, except as used
in schedule I(c) and schedule II(a)(4). As used in schedule I(c), the
term ‘‘isomer’’ means any optical, positional, or geometric isomer.
As used in schedule II(a)(4), the term ‘‘isomer’’ means any optical
or geometric isomer.
(15) The term ‘‘manufacture’’ means the production, preparation,
propagation, compounding, or processing of a drug or other sub-
stance, either directly or indirectly or by extraction from sub-
stances of natural origin, or independently by means of chemical
synthesis or by a combination of extraction and chemical synthesis,
and includes any packaging or repackaging of such substance or la-
beling or relabeling of its container; except that such term does not
include the preparation, compounding, packaging, or labeling of a
drug or other substance in conformity with applicable State or local
law by a practitioner as an incident to his administration or dis-
pensing of such drug or substance in the course of his professional
practice. The term ‘‘manufacturer’’ means a person who manufac-
tures a drug or other substance.
(16)(A) Subject to subparagraph (B), the term ‘‘marihuana’’
means all parts of the plant Cannabis sativa L., whether growing
or not; the seeds thereof; the resin extracted from any part of such
plant; and every compound, manufacture, salt, derivative, mixture,
or preparation of such plant, its seeds or resin.
(B) The term ‘‘marihuana’’ does not include—
(i) hemp, as defined in section 297A of the Agricultural Mar-
keting Act of 1946; or
(ii) the mature stalks of such plant, fiber produced from such
stalks, oil or cake made from the seeds of such plant, any other
compound, manufacture, salt, derivative, mixture, or prepara-
tion of such mature stalks (except the resin extracted there-
from), fiber, oil, or cake, or the sterilized seed of such plant
which is incapable of germination.
(17) The term ‘‘narcotic drug’’ means any of the following wheth-
er produced directly or indirectly by extraction from substances of
vegetable origin, or independently by means of chemical synthesis,
or by a combination of extraction and chemical synthesis:
(A) Opium, opiates, derivatives of opium and opiates, includ-
ing their isomers, esters, whenever the existence of such iso-
ctelli on DSK11ZRN23PROD with REPORTS
mers, esters, ethers, and salts is possible within the specific
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00053 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
54
chemical designation. Such term does not include the
isoquinoline alkaloids of opium.
(B) Poppy straw and concentrate of poppy straw.
(C) Coca leaves, except coca leaves and extracts of coca
leaves from which cocaine, ecgonine, and derivatives of ecgo-
nine or their salts have been removed.
(D) Cocaine, its salts, optical and geometric isomers, and
salts of isomers.
(E) Ecgonine, its derivatives, their salts, isomers, and salts
of isomers.
(F) Any compound, mixture, or preparation which contains
any quantity of any of the substances referred to in subpara-
graphs (A) through (E).
(18) The term ‘‘opiate’’or ‘‘opioid’’ means any drug or other sub-
stance having an addiction-forming or addiction-sustaining liability
similar to morphine or being capable of conversion into a drug hav-
ing such addiction-forming or addiction-sustaining liability.
(19) The term ‘‘opium poppy’’ means the plant of the species
Papaver somniferum L., except the seed thereof.
(20) The term ‘‘poppy straw’’ means all parts, except the seeds,
of the opium poppy, after mowing.
(21) The term ‘‘practitioner’’ means a physician, dentist, veteri-
narian, scientific investigator, pharmacy, hospital, or other person
licensed, registered, or otherwise permitted, by the United States
or the jurisdiction in which he practices or does research, to dis-
tribute, dispense, conduct research with respect to, administer, or
use in teaching or chemical analysis, a controlled substance in the
course of professional practice or research.
(22) The term ‘‘production’’ includes the manufacture, planting,
cultivation, growing, or harvesting of a controlled substance.
(23) The term ‘‘immediate precursor’’ means a substance—
(A) which the Attorney General has found to be and by regu-
lation designated as being the principal compound used, or pro-
duced primarily for use, in the manufacture of a controlled
substance;
(B) which is an immediate chemical intermediary used or
likely to be used in the manufacture of such controlled sub-
stance; and
(C) the control of which is necessary to prevent, curtail, or
limit the manufacture of such controlled substance.
(24) The term ‘‘Secretary’’, unless the context otherwise indicates,
means the Secretary of Health and Human Services.
(25) The term ‘‘serious bodily injury’’ means bodily injury which
involves—
(A) a substantial risk of death;
(B) protracted and obvious disfigurement; or
(C) protracted loss or impairment of the function of a bodily
member, or organ, or mental faculty.
(26) The term ‘‘State’’ means a State of the United States,
the District of Columbia, and any commonwealth, territory, or
possession of the United States.
(27) The term ‘‘ultimate user’’ means a person who has lawfully
obtained, and who possesses, a controlled substance for his own use
or for the use of a member of his household or for an animal owned
ctelli on DSK11ZRN23PROD with REPORTS
by him or by a member of his household.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00054 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
55
(28) The term ‘‘United States’’, when used in a geographic sense,
means all places and waters, continental or insular, subject to the
jurisdiction of the United States.
(29) The term ‘‘maintenance treatment’’ means the dispensing,
for a period in excess of twenty-one days, of a narcotic drug in the
treatment of an individual for dependence upon heroin or other
morphine-like drugs.
(30) The term ‘‘detoxification treatment’’ means the dispensing,
for a period not in excess of one hundred and eighty days, of a nar-
cotic drug in decreasing doses to an individual in order to alleviate
adverse physiological or psychological effects incident to with-
drawal from the continuous or sustained use of a narcotic drug and
as a method of bringing the individual to a narcotic drug-free state
within such period.
(31) The term ‘‘Convention on Psychotropic Substances’’ means
the Convention on Psychotropic Substances signed at Vienna, Aus-
tria, on February 21, 1971; and the term ‘‘Single Convention on
Narcotic Drugs’’ means the Single Convention on Narcotic Drugs
signed at New York, New York, on March 30, 1961.
(32)(A) Except as provided in subparagraph (C), the term ‘‘con-
trolled substance analogue’’ means a substance—
(i) the chemical structure of which is substantially similar to
the chemical structure of a controlled substance in schedule I
or II;
(ii) which has a stimulant, depressant, or hallucinogenic ef-
fect on the central nervous system that is substantially similar
to or greater than the stimulant, depressant, or hallucinogenic
effect on the central nervous system of a controlled substance
in schedule I or II; or
(iii) with respect to a particular person, which such person
represents or intends to have a stimulant, depressant, or hallu-
cinogenic effect on the central nervous system that is substan-
tially similar to or greater than the stimulant, depressant, or
hallucinogenic effect on the central nervous system of a con-
trolled substance in schedule I or II.
(B) The designation of gamma butyrolactone or any other chem-
ical as a listed chemical pursuant to paragraph (34) or (35) does
not preclude a finding pursuant to subparagraph (A) of this para-
graph that the chemical is a controlled substance analogue.
(C) Such term does not include—
(i) a controlled substance;
(ii) any substance for which there is an approved new drug
application;
(iii) with respect to a particular person any substance, if an
exemption is in effect for investigational use, for that person,
under section 505 of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 355) to the extent conduct with respect to such sub-
stance is pursuant to such exemption; or
(iv) any substance to the extent not intended for human con-
sumption before such an exemption takes effect with respect to
that substance.
(33) The term ‘‘listed chemical’’ means any list I chemical or any
list II chemical.
(34) The term ‘‘list I chemical’’ means a chemical specified by reg-
ctelli on DSK11ZRN23PROD with REPORTS
ulation to the Attorney General as a chemical that is used in man-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00055 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
56
ufacturing a controlled substance in violation of this title and is im-
portant to the manufacture of the controlled substances, and such
term includes (until otherwise specified by regulation of the Attor-
ney General, as considered appropriate by the Attorney General or
upon petition to the Attorney General by any person) the following:
(A) Anthranilic acid, its esters, and its salts.
(B) Benzyl cyanide.
(C) Ephedrine, its salts, optical isomers, and salts of optical
isomers.
(D) Ergonovine and its salts.
(E) Ergotamine and its salts.
(F) N-Acetylanthranilic acid, its esters, and its salts.
(G) Norpseudoephedrine, its salts, optical isomers, and salts
of
(H) Phenylacetic acid, its esters, and its salts.
(I) Phenylpropanolamine, its salts, optical isomers, and salts
of optical isomers.
(J) Piperidine and its salts.
(K) Pseudoephedrine, its salts, optical isomers, and salts of
optical isomers.
(L) 3,4-Methylenedioxyphenyl-2-propanone.
(M) Methylamine.
(N) Ethylamine.
(O) Propionic anhydride.
(P) Isosafrole.
(Q) Safrole.
(R) Piperonal.
(S) N-Methylephedrine.
(T) N-methylpseudoephedrine.
(U) Hydriodic acid.
(V) Benzaldehyde.
(W) Nitroethane.
(X) Gamma butyrolactone.
(Y) Any salt, optical isomer, or salt of an optical isomer of
the chemicals listed in subparagraphs (M) through (U) of this
paragraph.
(35) The term ‘‘list II chemical’’ means a chemical (other than a
list I chemical) specified by regulation of the Attorney General as
a chemical that is used in manufacturing a controlled substance in
violation of this title, and such term includes (until otherwise speci-
fied by regulation of the Attorney General, as considered appro-
priate by the Attorney General or upon petition to the Attorney
General by any person) the following chemicals:
(A) Acetic anhydride.
(B) Acetone.
(C) Benzyl chloride.
(D) Ethyl ether.
(F) Potassium permanaganate.
(G) 2-Butanone (or Methyl Ethyl Ketone).
(H) Toluene.
(I) Iodine.
(J) Hydrochloric gas.
(36) The term ‘‘regular customer’’ means, with respect to a regu-
ctelli on DSK11ZRN23PROD with REPORTS
lated person, a customer with whom the regulated person has an
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00056 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
57
established business relationship that is reported to the Attorney
General.
(37) The term ‘‘regular importer’’ means, with respect to a listed
chemical, a person that has an established record as an importer
of that listed chemical that is reported to the Attorney General.
(38) The term ‘‘regulated person’’ means a person who manufac-
tures, distributes, imports, or exports a listed chemical, a tableting
machine, or an encapsulating machine or who acts as a broker or
trader for an international transaction involving a listed chemical,
a tableting machine, or an encapsulating machine.
(39) The term ‘‘regulated transaction’’ means—
(A) a distribution, receipt, sale, importation, or exportation
of, or an international transaction involving shipment of, a list-
ed chemical, or if the Attorney General establishes a threshold
amount for a specific listed chemical, a threshold amount, in-
cluding a cumulative threshold amount for multiple trans-
actions (as determined by the Attorney General, in consulta-
tion with the chemical industry and taking into consideration
the quantities normally used for lawful purposes), of a listed
chemical, except that such term does not include—
(i) a domestic lawful distribution in the usual course of
business between agents or employees of a single regulated
person;
(ii) a delivery of a listed chemical to or by a common or
contract carrier for carriage in the lawful and usual course
of the business of the common or contract carrier, or to or
by a warehouseman for storage in the lawful and usual
course of the business of the warehouseman, except that if
the carriage or storage is in connection with the distribu-
tion, importation, or exportation of a listed chemical to a
third person, this clause does not relieve a distributor, im-
porter, or exporter from compliance with section 310;
(iii) any category of transaction or any category of trans-
action for a specific listed chemical or chemicals specified
by regulation of the Attorney General as excluded from
this definition as unnecessary for enforcement of this title
or title III;
(iv) any transaction in a listed chemical that is con-
tained in a drug that may be marketed or distributed law-
fully in the United States under the Federal Food, Drug,
and Cosmetic Act, subject to clause (v), unless—
(I) the Attorney General has determined under sec-
tion 204 that the drug or group of drugs is being di-
verted to obtain the listed chemical for use in the il-
licit production of a controlled substance; and
(II) the quantity of the listed chemical contained in
the drug included in the transaction or multiple trans-
actions equals or exceeds the threshold established for
that chemical by the Attorney General;
(v) any transaction in a scheduled listed chemical prod-
uct that is a sale at retail by a regulated seller or a dis-
tributor required to submit reports under section 310(b)(3);
or
(vi) any transaction in a chemical mixture which the At-
ctelli on DSK11ZRN23PROD with REPORTS
torney General has by regulation designated as exempt
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00057 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
58
from the application of this title and title III based on a
finding that the mixture is formulated in such a way that
it cannot be easily used in the illicit production of a con-
trolled substance and that the listed chemical or chemicals
contained in the mixture cannot be readily recovered; and
(B) a distribution, importation, or exportation of a tableting
machine or encapsulating machine.
(40) The term ‘‘chemical mixture’’ means a combination of two or
more chemical substances, at least one of which is not a list I
chemical or a list II chemical, except that such term does not in-
clude any combination of a list I chemical or a list II chemical with
another chemical that is present solely as an impurity.
(41)(A) The term ‘‘anabolic steroid’’ means any drug or hormonal
substance, chemically and pharmacologically related to testosterone
(other than estrogens, progestins, corticosteroids, and
dehydroepiandrosterone), and includes—
(i) androstanediol—
(I) 3β,17β-dihydroxy-5α-androstane; and
(II) 3α,17β-dihydroxy-5α-androstane;
(ii) androstanedione (5α-androstan-3,17-dione);
(iii) androstenediol—
(I) 1-androstenediol (3β,17β-dihydroxy-5α-androst-1-ene);
(II) 1-androstenediol (3α,17β-dihydroxy-5α-androst-1-
ene);
(III) 4-androstenediol (3β,17β-dihydroxy-androst-4-ene);
and
(IV) 5-androstenediol (3β,17β-dihydroxy-androst-5-ene);
(iv) androstenedione—
(I) 1-androstenedione ([5α]-androst-1-en-3,17-dione);
(II) 4-androstenedione (androst-4-en-3,17-dione); and
(III) 5-androstenedione (androst-5-en-3,17-dione);
(v) bolasterone (7α,17α-dimethyl-17β-hydroxyandrost-4-en-3-
one);
(vi) boldenone (17β-hydroxyandrost-1,4,-diene-3-one);
(vii) calusterone (7β,17α-dimethyl-17β-hydroxyandrost-4-en-
3-one);
(viii) clostebol (4-chloro-17β-hydroxyandrost-4-en-3-one);
(ix) dehydrochloromethyltestosterone (4-chloro-17β-hydroxy-
17α-methyl-androst-1,4-dien-3-one);
(x) >1-dihydrotestosterone (a.k.a. ‘‘1-testosterone’’) (17β-hy-
droxy-5α-androst-1-en-3-one);
(xi) 4-dihydrotestosterone (17β-hydroxy-androstan-3-one);
(xii) drostanolone (17β-hydroxy-2α-methyl-5α-androstan-3-
one);
(xiii) ethylestrenol (17α-ethyl-17β-hydroxyestr-4-ene);
(xiv) fluoxymesterone (9-fluoro-17α-methyl-11β,17β-
dihydroxyandrost-4-en-3-one);
(xv) formebolone (2-formyl-17α-methyl-11α,17β-
dihydroxyandrost-1,4-dien-3-one);
(xvi) furazabol (17α-methyl-17β-hydroxyandrostano[2,3-c]-
furazan);
(xvii) 13β-ethyl-17β-hydroxygon-4-en-3-one;
(xviii) 4-hydroxytestosterone (4,17β-dihydroxy-androst-4-en-
ctelli on DSK11ZRN23PROD with REPORTS
3-one);
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00058 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
59
(xix) 4-hydroxy-19-nortestosterone (4,17β-dihydroxy-estr-4-
en-3-one);
(xx) mestanolone (17α-methyl-17β-hydroxy-5α-androstan-3-
one);
(xxi) mesterolone (1α-methyl-17β-hydroxy-[5α]-androstan-3-
one);
(xxii) methandienone (17α-methyl-17β-hydroxyandrost-1,4-
dien-3-one);
(xxiii) methandriol (17α-methyl-3β,17β-dihydroxyandrost-5-
ene);
(xxiv) methenolone (1-methyl-17β-hydroxy-5α-androst-1-en-3-
one);
(xxv) 17α-methyl-3β, 17β-dihydroxy-5α-androstane;
(xxvi) 17α-methyl-3α,17β-dihydroxy-5α-androstane;
(xxvii) 17α-methyl-3β,17β-dihydroxyandrost-4-ene.
(xxviii) 17α-methyl-4-hydroxynandrolone (17α-methyl-4-hy-
droxy-17β-hydroxyestr-4-en-3-one);
(xxix) methyldienolone (17α-methyl-17β-hydroxyestra-
4,9(10)-dien-3-one);
(xxx) methyltrienolone (17α-methyl-17β-hydroxyestra-4,9-11-
trien-3-one);
(xxxi) methyltestosterone (17α-methyl-17β-hydroxyandrost-4-
en-3-one);
(xxxii) mibolerone (7α,17α-dimethyl-17β-hydroxyestr-4-en-3-
one);
(xxxiii) 17α-methyl-Δ1-dihydrotestosterone (17β-hydroxy-17α-
methyl-5α-androst-1-en-3-one) (a.k.a. ‘‘17-α-methyl-1-testos-
terone’’);
(xxxiv) nandrolone (17β-hydroxyestr-4-en-3-one);
(xxxv) norandrostenediol—
(I) 19-nor-4-androstenediol (3β, 17β-dihydroxyestr-4-ene);
(II) 19-nor-4-androstenediol (3α, 17β-dihydroxyestr-4-
ene);
(III) 19-nor-5-androstenediol (3β, 17β-dihydroxyestr-5-
ene); and
(IV) 19-nor-5-androstenediol (3α, 17β-dihydroxyestr-5-
ene);
(xxxvi) norandrostenedione—
(I) 19-nor-4-androstenedione (estr-4-en-3,17-dione); and
(II) 19-nor-5-androstenedione (estr-5-en-3,17-dione;
(xxxvii) norbolethone (13β,17α-diethyl-17β-hydroxygon-4-en-
3-one);
(xxxviii) norclostebol (4-chloro-17β-hydroxyestr-4-en-3-one);
(xxxix) norethandrolone (17α-ethyl-17β-hydroxyestr-4-en-3-
one);
(xl) normethandrolone (17α-methyl-17β-hydroxyestr-4-en-3-
one);
(xli) oxandrolone (17α-methyl-17β-hydroxy-2-oxa-[5α]-
androstan-3-one);
(xlii) oxymesterone (17α-methyl-4,17β-dihydroxyandrost-4-
en-3-one);
(xliii) oxymetholone (17α-methyl-2-hydroxymethylene-17β-hy-
droxy-[5α]-androstan-3-one);
(xliv) stanozolol (17α-methyl-17β-hydroxy-[5α]-androst-2-
ctelli on DSK11ZRN23PROD with REPORTS
eno[3,2-c]-pyrazole);
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00059 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
60
(xlv) stenbolone (17β-hydroxy-2-methyl-[5α]-androst-1-en-3-
one);
(xlvi) testolactone (13-hydroxy-3-oxo-13,17-secoandrosta-1,4-
dien-17-oic acid lactone);
(xlvii) testosterone (17β-hydroxyandrost-4-en-3-one);
(xlviii) tetrahydrogestrinone (13β,17α-diethyl-17β-
hydroxygon-4,9,11-trien-3-one);
(xlix) trenbolone (17β-hydroxyestr-4,9,11-trien-3-one);
(l) 5α-Androstan-3,6,17-trione;
(li) 6-bromo-androstan-3,17-dione;
(lii) 6-bromo-androsta-1,4-diene-3,17-dione;
(liii) 4-chloro-17α-methyl-androsta-1,4-diene-3,17β-diol;
(liv) 4-chloro-17α-methyl-androst-4-ene-3β,17β-diol;
(lv) 4-chloro-17α-methyl-17β-hydroxy-androst-4-en-3-one;
(lvi) 4-chloro-17α-methyl-17β-hydroxy-androst-4-ene-3,11-
dione;
(lvii) 4-chloro-17α-methyl-androsta-1,4-diene-3,17β-diol;
(lviii) 2α,17α-dimethyl-17β-hydroxy-5α-androstan-3-one;
(lix) 2α,17α-dimethyl-17β-hydroxy-5β-androstan-3-one;
(lx) 2α,3α-epithio-17α-methyl-5α-androstan-17β-ol;
(lxi) [3,2-c]-furazan-5α-androstan-17β-ol;
(lxii) 3β-hydroxy-estra-4,9,11-trien-17-one;
(lxiii) 17α-methyl-androst-2-ene-3,17β-diol;
(lxiv) 17α-methyl-androsta-1,4-diene-3,17β-diol;
(lxv) Estra-4,9,11-triene-3,17-dione;
(lxvi) 18a-Homo-3-hydroxy-estra-2,5(10)-dien-17-one;
(lxvii) 6α-Methyl-androst-4-ene-3,17-dione;
(lxviii) 17α-Methyl-androstan-3-hydroxyimine-17β-ol;
(lxix) 17α-Methyl-5α-androstan-17β-ol;
(lxx) 17β-Hydroxy-androstano[2,3-d]isoxazole;
(lxxi) 17β-Hydroxy-androstano[3,2-c]isoxazole;
(lxxii) 4-Hydroxy-androst-4-ene-3,17-dione[3,2-c]pyrazole-5α-
androstan-17β-ol;
(lxxiii) [3,2-c]pyrazole-androst-4-en-17β-ol;
(lxxiv) [3,2-c]pyrazole-5α-androstan-17β-ol; and
(lxxv) any salt, ester, or ether of a drug or substance de-
scribed in this paragraph.
The substances excluded under this subparagraph may at any time
be scheduled by the Attorney General in accordance with the au-
thority and requirements of subsections (a) through (c) of section
201.
(B)(i) Except as provided in clause (ii), such term does not in-
clude an anabolic steroid which is expressly intended for ad-
ministration through implants to cattle or other nonhuman
species and which has been approved by the Secretary of
Health and Human Services for such administration.
(ii) If any person prescribes, dispenses, or distributes such
steroid for human use, such person shall be considered to have
prescribed, dispensed, or distributed an anabolic steroid within
the meaning of subparagraph (A).
(C)(i) Subject to clause (ii), a drug or hormonal substance (other
than estrogens, progestins, corticosteroids, and
dehydroepiandrosterone) that is not listed in subparagraph (A) and
ctelli on DSK11ZRN23PROD with REPORTS
is derived from, or has a chemical structure substantially similar
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00060 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
61
to, 1 or more anabolic steroids listed in subparagraph (A) shall be
considered to be an anabolic steroid for purposes of this Act if—
(I) the drug or substance has been created or manufactured
with the intent of producing a drug or other substance that ei-
ther—
(aa) promotes muscle growth; or
(bb) otherwise causes a pharmacological effect similar to
that of testosterone; or
(II) the drug or substance has been, or is intended to be,
marketed or otherwise promoted in any manner suggesting
that consuming it will promote muscle growth or any other
pharmacological effect similar to that of testosterone.
(ii) A substance shall not be considered to be a drug or hormonal
substance for purposes of this subparagraph if it—
(I) is—
(aa) an herb or other botanical;
(bb) a concentrate, metabolite, or extract of, or a con-
stituent isolated directly from, an herb or other botanical;
or
(cc) a combination of 2 or more substances described in
item (aa) or (bb);
(II) is a dietary ingredient for purposes of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 301 et seq.); and
(III) is not anabolic or androgenic.
(iii) In accordance with section 515(a), any person claiming the
benefit of an exemption or exception under clause (ii) shall bear the
burden of going forward with the evidence with respect to such ex-
emption or exception.
(42) The term ‘‘international transaction’’ means a transaction in-
volving the shipment of a listed chemical across an international
border (other than a United States border) in which a broker or
trader located in the United States participates.
(43) The terms ‘‘broker’’ and ‘‘trader’’ mean a person that assists
in arranging an international transaction in a listed chemical by—
(A) negotiating contracts;
(B) serving as an agent or intermediary; or
(C) bringing together a buyer and seller, a buyer and trans-
porter, or a seller and transporter.
(44) The term ‘‘felony drug offense’’ means an offense that is pun-
ishable by imprisonment for more than one year under any law of
the United States or of a State or foreign country that prohibits or
restricts conduct relating to narcotic drugs, ømarihuana,¿ anabolic
steroids, or depressant or stimulant substances.
(45)(A) The term ‘‘scheduled listed chemical product’’ means, sub-
ject to subparagraph (B), a product that—
(i) contains ephedrine, pseudoephedrine, or phenylpropanola-
mine; and
(ii) may be marketed or distributed lawfully in the United
States under the Federal, Food, Drug, and Cosmetic Act as a
nonprescription drug.
Each reference in clause (i) to ephedrine, pseudoephedrine, or
phenylpropanolamine includes each of the salts, optical isomers,
and salts of optical isomers of such chemical.
(B) Such term does not include a product described in subpara-
ctelli on DSK11ZRN23PROD with REPORTS
graph (A) if the product contains a chemical specified in such sub-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00061 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
62
paragraph that the Attorney General has under section 201(a)
added to any of the schedules under section 202(c). In the absence
of such scheduling by the Attorney General, a chemical specified in
such subparagraph may not be considered to be a controlled sub-
stance.
(46) The term ‘‘regulated seller’’ means a retail distributor (in-
cluding a pharmacy or a mobile retail vendor), except that such
term does not include an employee or agent of such distributor.
(47) The term ‘‘mobile retail vendor’’ means a person or entity
that makes sales at retail from a stand that is intended to be tem-
porary, or is capable of being moved from one location to another,
whether the stand is located within or on the premises of a fixed
facility (such as a kiosk at a shopping center or an airport) or
whether the stand is located on unimproved real estate (such as a
lot or field leased for retail purposes).
(48) The term ‘‘at retail’’, with respect to the sale or purchase of
a scheduled listed chemical product, means a sale or purchase for
personal use, respectively.
(49)(A) The term ‘‘retail distributor’’ means a grocery store,
general merchandise store, drug store, or other entity or per-
son whose activities as a distributor relating to ephedrine,
pseudoephedrine, or phenylpropanolamine products are limited
almost exclusively to sales for personal use, both in number of
sales and volume of sales, either directly to walk-in customers
or in face-to-face transactions by direct sales.
(B) For purposes of this paragraph, entities are defined by
reference to the Standard Industrial Classification (SIC) code,
as follows:
(i) A grocery store is an entity within SIC code 5411.
(ii) A general merchandise store is an entity within SIC
codes 5300 through 5399 and 5499.
(iii) A drug store is an entity within SIC code 5912.
(50) The term ‘‘Internet’’ means collectively the myriad of com-
puter and telecommunications facilities, including equipment and
operating software, which comprise the interconnected worldwide
network of networks that employ the Transmission Control Pro-
tocol/Internet Protocol, or any predecessor or successor protocol to
such protocol, to communicate information of all kinds by wire or
radio.
(51) The term ‘‘deliver, distribute, or dispense by means of the
Internet’’ refers, respectively, to any delivery, distribution, or dis-
pensing of a controlled substance that is caused or facilitated by
means of the Internet.
(52) The term ‘‘online pharmacy’’—
(A) means a person, entity, or Internet site, whether in the
United States or abroad, that knowingly or intentionally deliv-
ers, distributes, or dispenses, or offers or attempts to deliver,
distribute, or dispense, a controlled substance by means of the
Internet; and
(B) does not include—
(i) manufacturers or distributors registered under sub-
section (a), (b), (d), or (e) of section 303 who do not dis-
pense controlled substances to an unregistered individual
ctelli on DSK11ZRN23PROD with REPORTS
or entity;
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00062 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
63
(ii) nonpharmacy practitioners who are registered under
section 303(f) and whose activities are authorized by that
registration;
(iii) any hospital or other medical facility that is oper-
ated by an agency of the United States (including the
Armed Forces), provided such hospital or other facility is
registered under section 303(f);
(iv) a health care facility owned or operated by an Indian
tribe or tribal organization, only to the extent such facility
is carrying out a contract or compact under the Indian
Self-Determination and Education Assistance Act;
(v) any agent or employee of any hospital or facility re-
ferred to in clause (iii) or (iv), provided such agent or em-
ployee is lawfully acting in the usual course of business or
employment, and within the scope of the official duties of
such agent or employee, with such hospital or facility, and,
with respect to agents or employees of health care facilities
specified in clause (iv), only to the extent such individuals
are furnishing services pursuant to the contracts or com-
pacts described in such clause;
(vi) mere advertisements that do not attempt to facili-
tate an actual transaction involving a controlled substance;
(vii) a person, entity, or Internet site that is not in the
United States and does not facilitate the delivery, distribu-
tion, or dispensing of a controlled substance by means of
the Internet to any person in the United States;
(viii) a pharmacy registered under section 303(f) whose
dispensing of controlled substances via the Internet con-
sists solely of—
(I) refilling prescriptions for controlled substances in
schedule III, IV, or V, as defined in paragraph (55); or
(II) filling new prescriptions for controlled sub-
stances in schedule III, IV, or V, as defined in para-
graph (56); or
(ix) any other persons for whom the Attorney General
and the Secretary have jointly, by regulation, found it to
be consistent with effective controls against diversion and
otherwise consistent with the public health and safety to
exempt from the definition of an ‘‘online pharmacy’’.
(53) The term ‘‘homepage’’ means the opening or main page or
screen of the website of an online pharmacy that is viewable on the
Internet.
(54) The term ‘‘practice of telemedicine’’ means, for purposes of
this title, the practice of medicine in accordance with applicable
Federal and State laws by a practitioner (other than a pharmacist)
who is at a location remote from the patient and is communicating
with the patient, or health care professional who is treating the pa-
tient, using a telecommunications system referred to in section
1834(m) of the Social Security Act, which practice—
(A) is being conducted—
(i) while the patient is being treated by, and physically
located in, a hospital or clinic registered under section
303(f); and
ctelli on DSK11ZRN23PROD with REPORTS
(ii) by a practitioner—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00063 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
64
(I) acting in the usual course of professional prac-
tice;
(II) acting in accordance with applicable State law;
and
(III) registered under section 303(f) in the State in
which the patient is located, unless the practitioner—
(aa) is exempted from such registration in all
States under section 302(d); or
(bb) is—
(AA) an employee or contractor of the De-
partment of Veterans Affairs who is acting in
the scope of such employment or contract; and
(BB) registered under section 303(f) in any
State or is utilizing the registration of a hos-
pital or clinic operated by the Department of
Veterans Affairs registered under section
303(f);
(B) is being conducted while the patient is being treated by,
and in the physical presence of, a practitioner—
(i) acting in the usual course of professional practice;
(ii) acting in accordance with applicable State law; and
(iii) registered under section 303(f) in the State in which
the patient is located, unless the practitioner—
(I) is exempted from such registration in all States
under section 302(d); or
(II) is—
(aa) an employee or contractor of the Depart-
ment of Veterans Affairs who is acting in the
scope of such employment or contract; and
(bb) registered under section 303(f) in any State
or is using the registration of a hospital or clinic
operated by the Department of Veterans Affairs
registered under section 303(f);
(C) is being conducted by a practitioner—
(i) who is an employee or contractor of the Indian Health
Service, or is working for an Indian tribe or tribal organi-
zation under its contract or compact with the Indian
Health Service under the Indian Self-Determination and
Education Assistance Act;
(ii) acting within the scope of the employment, contract,
or compact described in clause (i); and
(iii) who is designated as an Internet Eligible Controlled
Substances Provider by the Secretary under section
311(g)(2);
(D)(i) is being conducted during a public health emergency
declared by the Secretary under section 319 of the Public
Health Service Act; and
(ii) involves patients located in such areas, and such con-
trolled substances, as the Secretary, with the concurrence of
the Attorney General, designates, provided that such designa-
tion shall not be subject to the procedures prescribed by sub-
chapter II of chapter 5 of title 5, United States Code;
(E) is being conducted by a practitioner who has obtained
from the Attorney General a special registration under section
ctelli on DSK11ZRN23PROD with REPORTS
311(h);
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00064 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
65
(F) is being conducted—
(i) in a medical emergency situation—
(I) that prevents the patient from being in the phys-
ical presence of a practitioner registered under section
303(f) who is an employee or contractor of the Vet-
erans Health Administration acting in the usual
course of business and employment and within the
scope of the official duties or contract of that employee
or contractor;
(II) that prevents the patient from being physically
present at a hospital or clinic operated by the Depart-
ment of Veterans Affairs registered under section
303(f);
(III) during which the primary care practitioner of
the patient or a practitioner otherwise practicing tele-
medicine within the meaning of this paragraph is un-
able to provide care or consultation; and
(IV) that requires immediate intervention by a
health care practitioner using controlled substances to
prevent what the practitioner reasonably believes in
good faith will be imminent and serious clinical con-
sequences, such as further injury or death; and
(ii) by a practitioner that—
(I) is an employee or contractor of the Veterans
Health Administration acting within the scope of that
employment or contract;
(II) is registered under section 303(f) in any State or
is utilizing the registration of a hospital or clinic oper-
ated by the Department of Veterans Affairs registered
under section 303(f); and
(III) issues a controlled substance prescription in
this emergency context that is limited to a maximum
of a 5-day supply which may not be extended or re-
filled; or
(G) is being conducted under any other circumstances that
the Attorney General and the Secretary have jointly, by regula-
tion, determined to be consistent with effective controls against
diversion and otherwise consistent with the public health and
safety.
(55) The term ‘‘refilling prescriptions for controlled substances in
schedule III, IV, or V’’—
(A) means the dispensing of a controlled substance in sched-
ule III, IV, or V in accordance with refill instructions issued by
a practitioner as part of a valid prescription that meets the re-
quirements of subsections (b) and (c) of section 309, as appro-
priate; and
(B) does not include the issuance of a new prescription to an
individual for a controlled substance that individual was pre-
viously prescribed.
(56) The term ‘‘filling new prescriptions for controlled substances
in schedule III, IV, or V’’ means filling a prescription for an indi-
vidual for a controlled substance in schedule III, IV, or V, if—
(A) the pharmacy dispensing that prescription has previously
dispensed to the patient a controlled substance other than by
ctelli on DSK11ZRN23PROD with REPORTS
means of the Internet and pursuant to the valid prescription
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00065 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
66
of a practitioner that meets the applicable requirements of sub-
sections (b) and (c) of section 309 (in this paragraph referred
to as the ‘‘original prescription’’);
(B) the pharmacy contacts the practitioner who issued the
original prescription at the request of that individual to deter-
mine whether the practitioner will authorize the issuance of a
new prescription for that individual for the controlled sub-
stance described in subparagraph (A); and
(C) the practitioner, acting in the usual course of profes-
sional practice, determines there is a legitimate medical pur-
pose for the issuance of the new prescription.
(57) The term ‘‘suspicious order’’ may include, but is not lim-
ited to—
(A) an order of a controlled substance of unusual size;
(B) an order of a controlled substance deviating substan-
tially from a normal pattern; and
(C) orders of controlled substances of unusual frequency.
(57) The term ‘‘serious drug felony’’ means an offense de-
scribed in section 924(e)(2) of title 18, United States Code, for
which—
(A) the offender served a term of imprisonment of more
than 12 months; and
(B) the offender’s release from any term of imprisonment
was within 15 years of the commencement of the instant
offense.
(58) The term ‘‘serious violent felony’’ means—
(A) an offense described in section 3559(c)(2) of title 18,
United States Code, for which the offender served a term
of imprisonment of more than 12 months; and
(B) any offense that would be a felony violation of sec-
tion 113 of title 18, United States Code, if the offense were
committed in the special maritime and territorial jurisdic-
tion of the United States, for which the offender served a
term of imprisonment of more than 12 months.
PART B—AUTHORITY TO CONTROL; STANDARDS AND SCHEDULES
* * * * * * *
SCHEDULES OF CONTROLLED SUBSTANCES
SEC. 202. (a) There are established five schedules of controlled
substances, to be known as schedules I, II, III, IV, and V. Such
schedules shall initially consist of the substances listed in this sec-
tion. The schedules established by this section shall be updated
and republished on a semiannual basis during the two-year period
beginning one year after the date of enactment of this title and
shall be updated and republished on an annual basis thereafter.
(b) Except where control is required by United States obligations
under an international treaty, convention, or protocol, in effect on
the effective date of this part, and except in the case of an imme-
diate precursor, a drug or other substance may not be placed in
any schedule unless the findings required for such schedule are
made with respect to such drug or other substance. The findings
required for each of the schedules are as follows:
ctelli on DSK11ZRN23PROD with REPORTS
(1) SCHEDULE I.—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00066 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
67
(A) The drug or other substance has a high potential for
abuse.
(B) The drug or other substance has no currently accepted
medical use in treatment in the United States.
(C) There is a lack of accepted safety for use of the drug or
other substance under medical supervision.
(2) SCHEDULE II.—
(A) The drug or other substance has a high potential for
abuse.
(B) The drug or other substance has a currently accepted
medical use in treatment in the United States or a currently
accepted medical use with severe restrictions.
(C) Abuse of the drug or other substances may lead to severe
psychological or physical dependence.
(3) SCHEDULE III.—
(A) The drug or other substance has a potential for abuse
less than the drugs or other substances in schedules I and II.
(B) The drug or other substance has a currently accepted
medical use in treatment in the United States.
(C) Abuse of the drug or other substance may lead to mod-
erate or low physical dependence or high psychological depend-
ence.
(4) SCHEDULE IV.—
(A) The drug or other substance has a low potential for
abuse relative to the drugs or other substances in schedule III.
(B) The drug or other substance has a currently accepted
medical use in treatment in the United States.
(C) Abuse of the drug or other substance may lead to limited
physical dependence or psychological dependence relative to
the drugs or other substances in schedule III.
(5) SCHEDULE V.—
(A) The drug or other substance has a low potential for
abuse relative to the drugs or other substances in schedule IV.
(B) The drug or other substance has a currently accepted
medical use in treatment in the United States.
(C) Abuse of the drug or other substance may lead to limited
physical dependence or psychological dependence relative to
the drugs or other substances in schedule IV.
(c) Schedules I, II, III, IV, and V shall, unless and until amended
pursuant to section 201, consist of the following drugs or other sub-
stances, by whatever official name, common or usual name, chem-
ical name, or brand name designated:
SCHEDULE I
(a) Unless specifically excepted or unless listed in another sched-
ule, any of the following opiates, including their isomers, esters,
ethers, salts, and salts of isomers, esters, and ethers, whenever the
existence of such isomers, esters, ethers, and salts is possible with-
in the specific chemical designation:
(1) Acetylmethadol.
(2) Allylprodine.
(3) Alphacetylmathadol.
(4) Alphameprodine.
(5) Alphamethadol.
ctelli on DSK11ZRN23PROD with REPORTS
(6) Benzethidine.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00067 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
68
(7) Betacetylmethadol.
(8) Betameprodine.
(9) Betamethadol.
(10) Betaprodine.
(11) Clonitazene.
(12) Dextromoramide.
(13) Dextrorphan.
(14) Diampromide.
(15) Diethylthiambutene.
(16) Dimenoxadol.
(17) Dimepheptanol.
(18) Dimethylthiambutene.
(19) Dioxaphetyl butyrate.
(20) Dipipanone.
(21) Ethylmethylthiambutene.
(22) Etonitazene.
(23) Etoxeridine.
(24) Furethidine.
(25) Hydroxypethidine.
(26) Ketobemidone.
(27) Levomoramide.
(28) Levophenacylmorphan.
(29) Morpheridine.
(30) Noracymethadol.
(31) Norlevorphanol.
(32) Normethadone.
(33) Norpipanone.
(34) Phenadoxone.
(35) Phenampromide.
(36) Phenomorphan.
(37) Phenoperidine.
(38) Piritramide.
(39) Proheptazine.
(40) Properidine.
(41) Racemoramide.
(42) Trimeperidine.
(b) Unless specifically excepted or unless listed in another sched-
ule, any of the following opium derivatives, their salts, isomers,
and salts of isomers whenever the existence of such salts, isomers,
and salts of isomers is possible within the specific chemical des-
ignation:
(1) Acetorphine.
(2) Acetyldihydrocodeine.
(3) Benzylmorphine.
(4) Codeine methylbromide.
(5) Codeine-N-Oxide.
(6) Cyprenorphine.
(7) Desomorphine.
(8) Dihydromorphine.
(9) Etorphine.
(10) Heroin.
(11) Hydromorphinol.
(12) Methyldesorphine.
(13) Methylhydromorphine.
ctelli on DSK11ZRN23PROD with REPORTS
(14) Morphine methylbromide.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00068 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
69
(15) Morphine methylsulfonate.
(16) Morphine-N-Oxide.
(17) Myrophine.
(18) Nicocodeine.
(19) Nicomorphine.
(20) Normorphine.
(21) Pholcodine.
(22) Thebacon.
(c) Unless specifically excepted or unless listed in another sched-
ule, any material, compound, mixture, or preparation, which con-
tains any quantity of the following hallucinogenic substances, or
which contains any of their salts, isomers, and salts of isomers
whenever the existence of such salts, isomers, and salts of isomers
is possible within the specific chemical designation:
(1) 3,4-methylenedioxy amphetamine.
(2) 5-methoxy-3,4-methylenedioxy amphetamine.
(3) 3,4,5-trimethoxy amphetamine.
(4) Bufotenine.
(5) Diethyltryptamine.
(6) Dimethyltryptamine.
(7) 4-methyl-2,5-dimethoxy amphetamine.
(8) Ibogaine.
(9) Lysergic acid diethylamide.
ø(10) Marihuana.¿
(11) Mescaline.
(12) Peyote.
(13) N-ethyl-3-piperidyl benzilate.
(14) N-methyl-3-piperidyl benzilate.
(15) Psilocybin.
(16) Psilocyn.
ø(17) Tetrahydrocannabinols, except for
tetrahydrocannabinols in hemp (as defined under section 297A
of the Agricultural Marketing Act of 1946).¿
(18) 4-methylmethcathinone (Mephedrone).
(19) 3,4-methylenedioxypyrovalerone (MDPV).
(20) 2-(2,5-Dimethoxy-4-ethylphenyl)ethanamine (2C–E).
(21) 2-(2,5-Dimethoxy-4-methylphenyl)ethanamine (2C–D).
(22) 2-(4-Chloro-2,5-dimethoxyphenyl)ethanamine (2C–C).
(23) 2-(4-Iodo-2,5-dimethoxyphenyl)ethanamine (2C–I).
(24) 2-[4-(Ethylthio)-2,5-dimethoxyphenyl]ethanamine (2C–
T–2).
(25) 2-[4-(Isopropylthio)-2,5-dimethoxyphenyl]ethanamine
(2C–T–4).
(26) 2-(2,5-Dimethoxyphenyl)ethanamine (2C–H).
(27) 2-(2,5-Dimethoxy-4-nitro-phenyl)ethanamine (2C–N).
(28) 2-(2,5-Dimethoxy-4-(n)-propylphenyl)ethanamine (2C–P).
(d)(1) Unless specifically exempted or unless listed in another
schedule, any material, compound, mixture, or preparation which
contains any quantity of cannabimimetic agents, or which contains
their salts, isomers, and salts of isomers whenever the existence of
such salts, isomers, and salts of isomers is possible within the spe-
cific chemical designation.
(2) In paragraph (1):
(A) The term ‘‘cannabimimetic agents’’ means any substance
ctelli on DSK11ZRN23PROD with REPORTS
that is a cannabinoid receptor type 1 (CB1 receptor) agonist as
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00069 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
70
demonstrated by binding studies and functional assays within
any of the following structural classes:
(i) 2-(3-hydroxycyclohexyl)phenol with substitution at
the 5-position of the phenolic ring by alkyl or alkenyl,
whether or not substituted on the cyclohexyl ring to any
extent.
(ii) 3-(1-naphthoyl)indole or 3-(1-naphthylmethane)indole
by substitution at the nitrogen atom of the indole ring,
whether or not further substituted on the indole ring to
any extent, whether or not substituted on the naphthoyl or
naphthyl ring to any extent.
(iii) 3-(1-naphthoyl)pyrrole by substitution at the nitro-
gen atom of the pyrrole ring, whether or not further sub-
stituted in the pyrrole ring to any extent, whether or not
substituted on the naphthoyl ring to any extent.
(iv) 1-(1-naphthylmethylene)indene by substitution of
the 3-position of the indene ring, whether or not further
substituted in the indene ring to any extent, whether or
not substituted on the naphthyl ring to any extent.
(v) 3-phenylacetylindole or 3-benzoylindole by substi-
tution at the nitrogen atom of the indole ring, whether or
not further substituted in the indole ring to any extent,
whether or not substituted on the phenyl ring to any ex-
tent.
(B) Such term includes—
(i) 5-(1,1-dimethylheptyl)-2-[(1R,3S)-3-
hydroxycyclohexyl]-phenol (CP–47,497);
(ii) 5-(1,1-dimethyloctyl)-2-[(1R,3S)-3-hydroxycyclohexyl]-
phenol (cannabicyclohexanol or CP–47,497 C8-homolog);
(iii) 1-pentyl-3-(1-naphthoyl)indole (JWH–018 and
AM678);
(iv) 1-butyl-3-(1-naphthoyl)indole (JWH–073);
(v) 1-hexyl-3-(1-naphthoyl)indole (JWH–019);
(vi) 1-[2-(4-morpholinyl)ethyl]-3-(1-naphthoyl)indole
(JWH–200);
(vii) 1-pentyl-3-(2-methoxyphenylacetyl)indole (JWH–
250);
(viii) 1-pentyl-3-[1-(4-methoxynaphthoyl)]indole (JWH–
081);
(ix) 1-pentyl-3-(4-methyl-1-naphthoyl)indole (JWH–122);
(x) 1-pentyl-3-(4-chloro-1-naphthoyl)indole (JWH–398);
(xi) 1-(5-fluoropentyl)-3-(1-naphthoyl)indole (AM2201);
(xii) 1-(5-fluoropentyl)-3-(2-iodobenzoyl)indole (AM694);
(xiii) 1-pentyl-3-[(4-methoxy)-benzoyl]indole (SR–19 and
RCS–4);
(xiv) 1-cyclohexylethyl-3-(2-methoxyphenylacetyl)indole
(SR–18 and RCS–8); and
(xv) 1-pentyl-3-(2-chlorophenylacetyl)indole (JWH–203).
* * * * * * *
ctelli on DSK11ZRN23PROD with REPORTS
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00070 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
71
PART D—OFFENSES AND PENALTIES
PROHIBITED ACTS A—PENALTIES
SEC. 401. (a) Except as authorized by this title, it shall be unlaw-
ful for any person knowingly or intentionally—
(1) to manufacture, distribute, or dispense, or possess with
intent to manufacture, distribute, or dispense, a controlled sub-
stance; or
(2) to create, distribute, or dispense, or possess with intent
to distribute or dispense, a counterfeit substance.
(b) Except as otherwise provided in section 409, 418, 419, or 420
any person who violates subsection (a) of this section shall be sen-
tenced as follows:
(1)(A) In the case of a violation of subsection (a) of this section
involving—
(i) 1 kilogram or more of a mixture or substance containing
a detectable amount of heroin;
(ii) 5 kilograms or more of a mixture or substance containing
a detectable amount of—
(I) coca leaves, except coca leaves and extracts of coca
leaves from which cocaine, ecgonine, and derivatives of ec-
gonine or their salts have been removed;
(II) cocaine, its salts, optical and geometric isomers, and
salts of isomers;
(III) ecgonine, its derivatives, their salts, isomers, and
salts of isomers; or
(IV) any compound, mixture, or preparation which con-
tains any quantity of any of the substances referred to in
subclauses (I) through (III);
(iii) 280 grams or more of a mixture or substance described
in clause (ii) which contains cocaine base;
(iv) 100 grams or more of phencyclidine (PCP) or 1 kilogram
or more of a mixture or substance containing a detectable
amount of phencyclidine (PCP);
(v) 10 grams or more of a mixture or substance containing
a detectable amount of lysergic acid diethylamide (LSD);
(vi) 400 grams or more of a mixture or substance containing
a detectable amount of N-phenyl-N-[1-(2-phenylethyl)-4-
piperidinyl] propanamide or 100 grams or more of a mixture or
substance containing a detectable amount of any analogue of
N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide; or
ø(vii) 1000 kilograms or more of a mixture or substance con-
taining a detectable amount of marihuana, or 1,000 or more
marihuana plants regardless of weight; or¿
ø(viii)¿ (vii) 50 grams or more of methamphetamine, its
salts, isomers, and salts of its isomers or 500 grams or more
of a mixture or substance containing a detectable amount of
methamphetamine, its salts, isomers, or salts of its isomers;
such person shall be sentenced to a term of imprisonment which
may not be less than 10 years or more than life and if death or
serious bodily injury results from the use of such substance shall
be not less than 20 years or more than life, a fine not to exceed
the greater of that authorized in accordance with the provisions of
title 18, United States Code, or $10,000,000 if the defendant is an
ctelli on DSK11ZRN23PROD with REPORTS
individual or $50,000,000 if the defendant is other than an indi-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00071 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
72
vidual, or both. If any person commits such a violation after a prior
conviction for a serious drug felony or serious violent felony has be-
come final, such person shall be sentenced to a term of imprison-
ment of not less than 15 years and not more than life imprison-
ment and if death or serious bodily injury results from the use of
such substance shall be sentenced to life imprisonment, a fine not
to exceed the greater of twice that authorized in accordance with
the provisions of title 18, United States Code, or $20,000,000 if the
defendant is an individual or $75,000,000 if the defendant is other
than an individual, or both. If any person commits a violation of
this subparagraph or of section 409, 418, 419, or 420 after 2 or
more prior convictions for a serious drug felony or serious violent
felony have become final, such person shall be sentenced to a term
of imprisonment of not less than 25 years and fined in accordance
with the preceding sentence. Notwithstanding section 3583 of title
18, any sentence under this subparagraph shall, in the absence of
such a prior conviction, impose a term of supervised release of at
least 5 years in addition to such term of imprisonment and shall,
if there was such a prior conviction, impose a term of supervised
release of at least 10 years in addition to such term of imprison-
ment. Notwithstanding any other provision of law, the court shall
not place on probation or suspend the sentence of any person sen-
tenced under this subparagraph. No person sentenced under this
subparagraph shall be eligible for parole during the term of impris-
onment imposed therein.
(B) In the case of a violation of subsection (a) of this section in-
volving—
(i) 100 grams or more of a mixture or substance containing
a detectable amount of heroin;
(ii) 500 grams or more of a mixture or substance containing
a detectable amount of—
(I) coca leaves, except coca leaves and extracts of coca
leaves from which cocaine, ecgonine, and derivatives of ec-
gonine or their salts have been removed;
(II) cocaine, its salts, optical and geometric isomers, and
salts of isomers;
(III) ecgonine, its derivatives, their salts, isomers, and
salts of isomers; or
(IV) any compound, mixture, or preparation which con-
tains any quantity of any of the substances referred to in
subclauses (I) through (III);
(iii) 28 grams or more of a mixture or substance described
in clause (ii) which contains cocaine base;
(iv) 10 grams or more of phencyclidine (PCP) or 100 grams
or more of a mixture or substance containing a detectable
amount of phencyclidine (PCP);
(v) 1 gram or more of a mixture or substance containing a
detectable amount of lysergic acid diethylamide (LSD);
(vi) 40 grams or more of a mixture or substance containing
a detectable amount of N-phenyl-N-[1-(2-phenylethyl)-4-
piperidinyl] propanamide or 10 grams or more of a mixture or
substance containing a detectable amount of any analogue of
ctelli on DSK11ZRN23PROD with REPORTS
N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide; or
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00072 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
73
ø(vii) 100 kilograms or more of a mixture or substance con-
taining a detectable amount of marihuana, or 100 or more
marihuana plants regardless of weight; or¿
ø(viii)¿ (vii) 5 grams or more of methamphetamine, its salts,
isomers, and salts of its isomers or 50 grams or more of a mix-
ture or substance containing a detectable amount of meth-
amphetamine, its salts, isomers, or salts of its isomers;
such person shall be sentenced to a term of imprisonment which
may not be less than 5 years and not more than 40 years and if
death or serious bodily injury results from the use of such sub-
stance shall be not less than 20 years or more than life, a fine not
to exceed the greater of that authorized in accordance with the pro-
visions of title 18, United States Code, or $5,000,000 if the defend-
ant is an individual or $25,000,000 if the defendant is other than
an individual, or both. If any person commits such a violation after
a prior conviction for a serious drug felony or serious violent felony
has become final, such person shall be sentenced to a term of im-
prisonment which may not be less than 10 years and not more
than life imprisonment and if death or serious bodily injury results
from the use of such substance shall be sentenced to life imprison-
ment, a fine not to exceed the greater of twice that authorized in
accordance with the provisions of title 18, United States Code, or
$8,000,000 if the defendant is an individual or $50,000,000 if the
defendant is other than an individual, or both. Notwithstanding
section 3583 of title 18, any sentence under this subparagraph
shall, in the absence of such a prior conviction, include a term of
supervised release of at least 4 years in addition to such term of
imprisonment and shall, if there was such a prior conviction, in-
clude a term of supervised release of at least 8 years in addition
to such term of imprisonment. Notwithstanding any other provision
of law, the court shall not place on probation or suspend the sen-
tence of any person sentenced under this subparagraph. No person
sentenced under this subparagraph shall be eligible for parole dur-
ing the term of imprisonment imposed therein.
(C) In the case of a controlled substance in schedule I or II,
gamma hydroxybutyric acid (including when scheduled as an ap-
proved drug product for purposes of section 3(a)(1)(B) of the Hillory
J. Farias and Samantha Reid Date-Rape Drug Prohibition Act of
2000), or 1 gram of flunitrazepam, except as provided in øsubpara-
graphs (A), (B), and (D)¿ subparagraphs (A) and (B), such person
shall be sentenced to a term of imprisonment of not more than 20
years and if death or serious bodily injury results from the use of
such substance shall be sentenced to a term of imprisonment of not
less than twenty years or more than life, a fine not to exceed the
greater of that authorized in accordance with the provisions of title
18, United States Code, or $1,000,000 if the defendant is an indi-
vidual or $5,000,000 if the defendant is other than an individual,
or both. If any person commits such a violation after a prior convic-
tion for a felony drug offense has become final, such person shall
be sentenced to a term of imprisonment of not more than 30 years
and if death or serious bodily injury results from the use of such
substance shall be sentenced to life imprisonment, a fine not to ex-
ceed the greater of twice that authorized in accordance with the
provisions of title 18, United States Code, or $2,000,000 if the de-
ctelli on DSK11ZRN23PROD with REPORTS
fendant is an individual or $10,000,000 if the defendant is other
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00073 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
74
than an individual, or both. Notwithstanding section 3583 of title
18, any sentence imposing a term of imprisonment under this para-
graph shall, in the absence of such a prior conviction, impose a
term of supervised release of at least 3 years in addition to such
term of imprisonment and shall, if there was such a prior convic-
tion, impose a term of supervised release of at least 6 years in ad-
dition to such term of imprisonment. Notwithstanding any other
provision of law, the court shall not place on probation or suspend
the sentence of any person sentenced under the provisions of this
subparagraph which provide for a mandatory term of imprisonment
if death or serious bodily injury results, nor shall a person so sen-
tenced be eligible for parole during the term of such a sentence.
ø(D) In the case of less than 50 kilograms of marihuana, except
in the case of 50 or more marihuana plants regardless of weight,
10 kilograms of hashish, or one kilogram of hashish oil, such per-
son shall, except as provided in paragraphs (4) and (5) of this sub-
section, be sentenced to a term of imprisonment of not more than
5 years, a fine not to exceed the greater of that authorized in ac-
cordance with the provisions of title 18, United States Code, or
$250,000 if the defendant is an individual or $1,000,000 if the de-
fendant is other than an individual, or both. If any person commits
such a violation after a prior conviction for a felony drug offense
has become final, such person shall be sentenced to a term of im-
prisonment of not more than 10 years, a fine not to exceed the
greater of twice that authorized in accordance with the provisions
of title 18, United State Code, or $500,000 if the defendant is an
individual or $2,000,000 if the defendant is other than an indi-
vidual, or both. Notwithstanding section 3583 of title 18, any sen-
tence imposing a term of imprisonment under this paragraph shall,
in the absence of such a prior conviction, impose a special parole
term of at least 2 years in addition to such term of imprisonment
and shall, if there was such a prior conviction, impose a term of
supervised release of at least 4 years in addition to such term of
imprisonment.¿
ø(E)¿ (D)(i) Except as provided in øsubparagraphs (C) and (D)¿
subparagraph (C), in the case of any controlled substance in sched-
ule III, such person shall be sentenced to a term of imprisonment
of not more than 10 years and if death or serious bodily injury re-
sults from the use of such substance shall be sentenced to a term
of imprisonment of not more than 15 years, a fine not to exceed the
greater of that authorized in accordance with the provisions of title
18, United States Code, or $500,000 if the defendant is an indi-
vidual or $2,500,000 if the defendant is other than an individual,
or both.
(ii) If any person commits such a violation after a prior conviction
for a felony drug offense has become final, such person shall be
sentenced to a term of imprisonment of not more than 20 years and
if death or serious bodily injury results from the use of such sub-
stance shall be sentenced to a term of imprisonment of not more
than 30 years, a fine not to exceed the greater of twice that author-
ized in accordance with the provisions of title 18, United States
Code, or $1,000,000 if the defendant is an individual or $5,000,000
if the defendant is other than an individual, or both.
(iii) Any sentence imposing a term of imprisonment under this
ctelli on DSK11ZRN23PROD with REPORTS
subparagraph shall, in the absence of such a prior conviction, im-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00074 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
75
pose a term of supervised release of at least 2 years in addition to
such term of imprisonment and shall, if there was such a prior con-
viction, impose a term of supervised release of at least 4 years in
addition to such term of imprisonment.
(2) In the case of a controlled substance in schedule IV, such per-
son shall be sentenced to a term of imprisonment of not more than
5 years, a fine not to exceed the greater of that authorized in ac-
cordance with the provisions of title 18, United States Code, or
$250,000 if the defendant is an individual or $1,000,000 if the de-
fendant is other than an individual, or both. If any person commits
such a violation after a prior conviction for a felony drug offense
has become final, such person shall be sentenced to a term of im-
prisonment of not more than 10 years, a fine not to exceed the
greater of twice the authorized in accordance with the provisions
of title 18, United States Code, or $500,000 if the defendant is an
individual or $2,000,000 if the defendant is other than an indi-
vidual, or both. Any sentence imposing a term of imprisonment
under this paragraph shall, in the absence of such a prior convic-
tion, impose a term of supervised release of at least one year in ad-
dition to such term of imprisonment and shall, if there was such
a prior conviction, impose a term of supervised release of at least
2 years in addition to such term of imprisonment.
(3) In the case of a controlled substance in schedule V, such per-
son shall be sentenced to a term of imprisonment of not more than
1 year, a fine not to exceed the greater of that authorized in accord-
ance with the provisions of title 18, United States Code, or
$100,000 if the defendant is an individual or $250,000 if the de-
fendant is other than an individual, or both. If any person commits
such a violation after a prior conviction for a felony drug offense
has become final, such person shall be sentenced to a term of im-
prisonment of not more than 4 years, a fine not to exceed the provi-
sions of title 18, United States Code, or $200,000 if the defendant
is an individual or $500,000 if the defendant is other than an indi-
vidual, or both. Any sentence imposing a term of imprisonment
under this paragraph may, if there was a prior conviction, impose
a term of supervised release of not more than 1 year, in addition
to such term of imprisonment.
ø(4) Notwithstanding paragraph (1)(D) of this subsection, any
person who violates subsection (a) of this section by distributing a
small amount of marihuana for no remuneration shall be treated
as provided in section 404 and section 3607 of title 18, United
States Code.¿
ø(5)¿ (4) Any person who violates subsection (a) of this section
by cultivating or manufacturing a controlled substance on Federal
property shall be imprisoned as provided in this subsection and
shall be fined any amount not to exceed—
(A) the amount authorized in accordance with this section;
(B) the amount authorized in accordance with the provisions
of title 18, United States Code;
(C) $500,000 if the defendant is an individual; or
(D) $1,000,000 if the defendant is other than an individual;
or both.
ø(6)¿ (5) Any person who violates subsection (a), or attempts to
do so, and knowingly or intentionally uses a poison, chemical, or
ctelli on DSK11ZRN23PROD with REPORTS
other hazardous substance on Federal land, and, by such use—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00075 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
76
(A) creates a serious hazard to humans, wildlife, or domestic
animals,
(B) degrades or harms the environment or natural resources,
or
(C) pollutes an aquifer, spring, stream, river, or body of
water,
shall be fined in accordance with title 18, United States Code, or
imprisoned not more than five years, or both.
ø(7)¿ (6) PENALTIES FOR DISTRIBUTION.—
(A) IN GENERAL.—Whoever, with intent to commit a crime of
violence, as defined in section 16 of title 18, United States
Code (including rape), against an individual, violates sub-
section (a) by distributing a controlled substance or controlled
substance analogue to that individual without that individual’s
knowledge, shall be imprisoned not more than 20 years and
fined in accordance with title 18, United States Code.
(B) DEFINITION.—For purposes of this paragraph, the term
‘‘without that individual’s knowledge’’ means that the indi-
vidual is unaware that a substance with the ability to alter
that individual’s ability to appraise conduct or to decline par-
ticipation in or communicate unwillingness to participate in
conduct is administered to the individual.
(c) Any person who knowingly or intentionally—
(1) possesses a listed chemical with intent to manufacture a
controlled substance except as authorized by this title;
(2) possesses or distributes, a listed chemical knowing, or
having reasonable cause to believe, that the listed chemical
will be used to manufacture a controlled substance except as
authorized by this title; or
(3) with the intent of causing the evasion of the record-
keeping or reporting requirements of section 310, or the regu-
lations issued under that section, receives or distributes a re-
portable amount of any listed chemical in units small enough
so that the making of records or filing of reports under that
section is not required;
shall be fined in accordance with title 18, United States Code, or
imprisoned not more than 20 years in the case of a violation of
paragraph (1) or (2) involving a list I chemical or not more than
10 years in the case of a violation of this subsection other than a
violation of paragraph (1) or (2) involving a list I chemical, or both.
(d)(1) Any person who assembles, maintains, places, or causes to
be placed a boobytrap on Federal property where a controlled sub-
stance is being manufactured, distributed, or dispensed shall be
sentenced to a term of imprisonment for not more than 10 years
or fined under title 18, United States Code, or both.
(2) If any person commits such a violation after 1 or more prior
convictions for an offense punishable under this subsection, such
person shall be sentenced to a term of imprisonment of not more
than 20 years or fined under title 18, United States Code, or both.
(3) For the purposes of this subsection, the term ‘‘boobytrap’’
means any concealed or camouflaged device designed to cause bod-
ily injury when triggered by any action of any unsuspecting person
making contact with the device. Such term includes guns, ammuni-
ctelli on DSK11ZRN23PROD with REPORTS
tion, or explosive devices attached to trip wires or other triggering
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00076 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
77
mechanisms, sharpened stakes, and lines or wires with hooks at-
tached.
(e) In addition to any other applicable penalty, any person con-
victed of a felony violation of this section relating to the receipt,
distribution, manufacture, exportation, or importation of a listed
chemical may be enjoined from engaging in any transaction involv-
ing a listed chemical for not more than ten years.
(f)(1) Whoever knowingly distributes a listed chemical in viola-
tion of this title (other than in violation of a recordkeeping or re-
porting requirement of section 310) shall, except to the extent that
paragraph (12), (13), or (14) of section 402(a) applies, be fined
under title 18, United States Code, or imprisoned not more than
5 years, or both.
(2) Whoever possesses any listed chemical, with knowledge that
the recordkeeping or reporting requirements of section 310 have
not been adhered to, if, after such knowledge is acquired, such per-
son does not take immediate steps to remedy the violation shall be
fined under title 18, United States Code, or imprisoned not more
than one year, or both.
(g) INTERNET SALES OF DATE RAPE DRUGS.—
(1) Whoever knowingly uses the Internet to distribute a date
rape drug to any person, knowing or with reasonable cause to
believe that—
(A) the drug would be used in the commission of crimi-
nal sexual conduct; or
(B) the person is not an authorized purchaser;
shall be fined under this title or imprisoned not more than 20
years, or both.
(2) As used in this subsection:
(A) The term ‘‘date rape drug’’ means—
(i) gamma hydroxybutyric acid (GHB) or any con-
trolled substance analogue of GHB, including gamma
butyrolactone (GBL) or 1,4–butanediol;
(ii) ketamine;
(iii) flunitrazepam; or
(iv) any substance which the Attorney General des-
ignates, pursuant to the rulemaking procedures pre-
scribed by section 553 of title 5, United States Code,
to be used in committing rape or sexual assault.
The Attorney General is authorized to remove any sub-
stance from the list of date rape drugs pursuant to the
same rulemaking authority.
(B) The term ‘‘authorized purchaser’’ means any of the
following persons, provided such person has acquired the
controlled substance in accordance with this Act:
(i) A person with a valid prescription that is issued
for a legitimate medical purpose in the usual course of
professional practice that is based upon a qualifying
medical relationship by a practitioner registered by
the Attorney General. A ‘‘qualifying medical relation-
ship’’ means a medical relationship that exists when
the practitioner has conducted at least 1 medical eval-
uation with the authorized purchaser in the physical
presence of the practitioner, without regard to wheth-
ctelli on DSK11ZRN23PROD with REPORTS
er portions of the evaluation are conducted by other
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00077 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
78
heath professionals. The preceding sentence shall not
be construed to imply that 1 medical evaluation dem-
onstrates that a prescription has been issued for a le-
gitimate medical purpose within the usual course of
professional practice.
(ii) Any practitioner or other registrant who is other-
wise authorized by their registration to dispense, pro-
cure, purchase, manufacture, transfer, distribute, im-
port, or export the substance under this Act.
(iii) A person or entity providing documentation that
establishes the name, address, and business of the
person or entity and which provides a legitimate pur-
pose for using any ‘‘date rape drug’’ for which a pre-
scription is not required.
(3) The Attorney General is authorized to promulgate regula-
tions for record-keeping and reporting by persons handling
1,4–butanediol in order to implement and enforce the provi-
sions of this section. Any record or report required by such reg-
ulations shall be considered a record or report required under
this Act.
(h) OFFENSES INVOLVING DISPENSING OF CONTROLLED SUB-
STANCES BY MEANS OF THE INTERNET.—
(1) IN GENERAL.—It shall be unlawful for any person to
knowingly or intentionally—
(A) deliver, distribute, or dispense a controlled substance
by means of the Internet, except as authorized by this
title; or
(B) aid or abet (as such terms are used in section 2 of
title 18, United States Code) any activity described in sub-
paragraph (A) that is not authorized by this title.
(2) EXAMPLES.—Examples of activities that violate paragraph
(1) include, but are not limited to, knowingly or intentionally—
(A) delivering, distributing, or dispensing a controlled
substance by means of the Internet by an online pharmacy
that is not validly registered with a modification author-
izing such activity as required by section 303(f) (unless ex-
empt from such registration);
(B) writing a prescription for a controlled substance for
the purpose of delivery, distribution, or dispensation by
means of the Internet in violation of section 309(e);
(C) serving as an agent, intermediary, or other entity
that causes the Internet to be used to bring together a
buyer and seller to engage in the dispensing of a controlled
substance in a manner not authorized by sections 303(f) or
309(e);
(D) offering to fill a prescription for a controlled sub-
stance based solely on a consumer’s completion of an on-
line medical questionnaire; and
(E) making a material false, fictitious, or fraudulent
statement or representation in a notification or declaration
under subsection (d) or (e), respectively, of section 311.
(3) INAPPLICABILITY.—
ctelli on DSK11ZRN23PROD with REPORTS
(A) This subsection does not apply to—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00078 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
79
(i) the delivery, distribution, or dispensation of con-
trolled substances by nonpractitioners to the extent
authorized by their registration under this title;
(ii) the placement on the Internet of material that
merely advocates the use of a controlled substance or
includes pricing information without attempting to
propose or facilitate an actual transaction involving a
controlled substance; or
(iii) except as provided in subparagraph (B), any ac-
tivity that is limited to—
(I) the provision of a telecommunications serv-
ice, or of an Internet access service or Internet in-
formation location tool (as those terms are defined
in section 231 of the Communications Act of
1934); or
(II) the transmission, storage, retrieval, hosting,
formatting, or translation (or any combination
thereof) of a communication, without selection or
alteration of the content of the communication, ex-
cept that deletion of a particular communication
or material made by another person in a manner
consistent with section 230(c) of the Communica-
tions Act of 1934 shall not constitute such selec-
tion or alteration of the content of the communica-
tion.
(B) The exceptions under subclauses (I) and (II) of sub-
paragraph (A)(iii) shall not apply to a person acting in con-
cert with a person who violates paragraph (1).
(4) KNOWING OR INTENTIONAL VIOLATION.—Any person who
knowingly or intentionally violates this subsection shall be sen-
tenced in accordance with subsection (b).
PROHIBITED ACTS B—PENALTIES
SEC. 402. (a) It shall be unlawful for any person—
(1) who is subject to the requirements of part C to distribute
or dispense a controlled substance in violation of section 309;
(2) who is a registrant to distribute or dispense a controlled
substance not authorized by his registration to another reg-
istrant or other authorized person or to manufacture a con-
trolled substance not authorized by his registration;
(3) who is a registrant to distribute a controlled substance in
violation of section 305 of this title;
(4) to remove, alter, or obliterate a symbol or label required
by section 305 of this title;
(5) to refuse or negligently fail to make, keep, or furnish any
record, report, notification, declaration, order or order form,
statement, invoice, or information required under this title or
title III;
(6) to refuse any entry into any premises or inspection au-
thorized by this title or title III;
(7) to remove, break, injure, or deface a seal placed upon con-
trolled substances pursuant to section 304(f) or 511 or to re-
move or dispose of substances so placed under seal;
(8) to use, to his own advantage, or to reveal, other than to
ctelli on DSK11ZRN23PROD with REPORTS
duly authorized officers or employees of the United States, or
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00079 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
80
to the courts when relevant in any judicial proceeding under
this title or title III, any information acquired in the course of
an inspection authorized by this title concerning any method or
process which as a trade secret is entitled to protection, or to
use to his own advantage or reveal (other than as authorized
by section 310) any information that is confidential under such
section;
(9) who is a regulated person to engage in a regulated trans-
action without obtaining the identification required by
310(a)(3);
(10) negligently to fail to keep a record or make a report
under section 310 or negligently to fail to self-certify as re-
quired under section 310;
(11) to distribute a laboratory supply to a person who uses,
or attempts to use, that laboratory supply to manufacture a
controlled substance or a listed chemical, in violation of this
title or title III, with reckless disregard for the illegal uses to
which such a laboratory supply will be put;
(12) who is a regulated seller, or a distributor required to
submit reports under subsection (b)(3) of section 310—
(A) to sell at retail a scheduled listed chemical product
in violation of paragraph (1) of subsection (d) of such sec-
tion, knowing at the time of the transaction involved (inde-
pendent of consulting the logbook under subsection
(e)(1)(A)(iii) of such section) that the transaction is a viola-
tion; or
(B) to knowingly or recklessly sell at retail such a prod-
uct in violation of paragraph (2) of such subsection (d);
(13) who is a regulated seller to knowingly or recklessly sell
at retail a scheduled listed chemical product in violation of
subsection (e) of such section;
(14) who is a regulated seller or an employee or agent of
such seller to disclose, in violation of regulations under sub-
paragraph (C) of section 310(e)(1), information in logbooks
under subparagraph (A)(iii) of such section, or to refuse to pro-
vide such a logbook to Federal, State, or local law enforcement
authorities;
(15) to distribute a scheduled listed chemical product to a
regulated seller, or to a regulated person referred to in section
310(b)(3)(B), unless such regulated seller or regulated person
is, at the time of such distribution, currently registered with
the Drug Enforcement Administration, or on the list of persons
referred to under section 310(e)(1)(B)(v);
(16) to violate subsection (e) of section 825 of this title; or
(17) in the case of a registered manufacturer or distributor
of opioids, to fail to review the most recent information, di-
rectly related to the customers of the manufacturer or dis-
tributor, made available by the Attorney General in accordance
with section 307(f).
As used in paragraph (11), the term ‘‘laboratory supply’’ means a
listed chemical or any chemical, substance, or item on a special
surveillance list published by the Attorney General, which contains
chemicals, products, materials, or equipment used in the manufac-
ture of controlled substances and listed chemicals. For purposes of
ctelli on DSK11ZRN23PROD with REPORTS
paragraph (11), there is a rebuttable presumption of reckless dis-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00080 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
81
regard at trial if the Attorney General notifies a firm in writing
that a laboratory supply sold by the firm, or any other person or
firm, has been used by a customer of the notified firm, or distrib-
uted further by that customer, for the unlawful production of con-
trolled substances or listed chemicals a firm distributes and 2
weeks or more after the notification the notified firm distributes a
laboratory supply to the customer. For purposes of paragraph (15),
if the distributor is temporarily unable to access the list of persons
referred to under section 310(e)(1)(B)(v), the distributor may rely
on a written, faxed, or electronic copy of a certificate of self-certifi-
cation submitted by the regulated seller or regulated person, pro-
vided the distributor confirms within 7 business days of the dis-
tribution that such regulated seller or regulated person is on the
list referred to under section 310(e)(1)(B)(v).
(b) It shall be unlawful for any person who is a registrant to
manufacture a controlled substance in schedule I or II, or ephed-
rine, pseudoephedrine, or phenylpropanolamine or any of the salts,
optical isomers, or salts of optical isomers of such chemical, which
is—
(1) not expressly authorized by his registration and by a
quota assigned to him pursuant to section 306; or
(2) in excess of a quota assigned to him pursuant to section
306.
(c)(1)(A) Except as provided in subparagraph (B), (C), or (D) of
this paragraph and paragraph (2), any person who violates this sec-
tion shall, with respect to any such violation, be subject to a civil
penalty of not more than $25,000. The district courts of the United
States (or, where there is no such court in the case of any territory
or possession of the United States, then the court in such territory
or possession having the jurisdiction of a district court of the
United States in cases arising under the Constitution and laws of
the United States) shall have jurisdiction in accordance with sec-
tion 1355 of title 28 of the United States Code to enforce this para-
graph.
(B)(i) Except as provided in clause (ii), in the case of a violation
of paragraph (5), (10), or (17) of subsection (a), the civil penalty
shall not exceed $10,000.
(ii) In the case of a violation described in clause (i) committed by
a registered manufacturer or distributor of opioids and related to
the reporting of suspicious orders for opioids, failing to maintain ef-
fective controls against diversion of opioids, or failing to review the
most recent information made available by the Attorney General in
accordance with section 307(f), the penalty shall not exceed
$100,000.
(C) In the case of a violation of paragraph (16) of subsection (a)
of this section by an importer, exporter, manufacturer, or dis-
tributor (other than as provided in subparagraph (D)), up to
$500,000 per violation. For purposes of this subparagraph, a viola-
tion is defined as each instance of importation, exportation, manu-
facturing, distribution, or possession with intent to manufacture or
distribute, in violation of paragraph (16) of subsection (a).
(D) In the case of a distribution, dispensing, or possession with
intent to distribute or dispense in violation of paragraph (16) of
subsection (a) of this section at the retail level, up to $1000 per vio-
ctelli on DSK11ZRN23PROD with REPORTS
lation. For purposes of this paragraph, the term ‘‘at the retail level’’
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00081 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
82
refers to products sold, or held for sale, directly to the consumer
for personal use. Each package, container or other separate unit
containing an anabolic steroid that is distributed, dispensed, or
possessed with intent to distribute or dispense at the retail level
in violation of such paragraph (16) of subsection (a) shall be consid-
ered a separate violation.
(2)(A) If a violation of this section is prosecuted by an informa-
tion or indictment which alleges that the violation was committed
knowingly and the trier of fact specifically finds that the violation
was so committed, such person shall, except as otherwise provided
in subparagraph (B) or (D) of this paragraph, be sentenced to im-
prisonment of not more than one year or a fine under title 18,
United States Code, or both.
(B) If a violation referred to in subparagraph (A) was committed
after one or more prior convictions of the offender for an offense
punishable under this paragraph (2), or for a crime under any
other provision of this title or title III or other law of the United
States relating to narcotic drugsø, marihuana,¿ or depressant or
stimulant substances, have become final, such person shall be sen-
tenced to a term of imprisonment of not more than 2 years, a fine
under title 18, United States Code, or both.
(C) In addition to the penalties set forth elsewhere in this title
or title III, any business that violates paragraph (11) of subsection
(a) shall, with respect to the first such violation, be subject to a
civil penalty of not more than $250,000, but shall not be subject to
criminal penalties under this section, and shall, for any succeeding
violation, be subject to a civil fine of not more than $250,000 or
double the last previously imposed penalty, whichever is greater.
(D) In the case of a violation described in subparagraph (A) that
was a violation of paragraph (5), (10), or (17) of subsection (a) com-
mitted by a registered manufacturer or distributor of opioids that
relates to the reporting of suspicious orders for opioids, failing to
maintain effective controls against diversion of opioids, or failing to
review the most recent information made available by the Attorney
General in accordance with section 307(f), the criminal fine under
title 18, United States Code, shall not exceed $500,000.
(3) Except under the conditions specified in paragraph (2) of this
subsection, a violation of this section does not constitute a crime,
and a judgment for the United States and imposition of a civil pen-
alty pursuant to paragraph (1) shall not give rise to any disability
or legal disadvantage based on conviction for a criminal offense.
(4)(A) If a regulated seller, or a distributor required to submit re-
ports under section 310(b)(3), violates paragraph (12) of subsection
(a) of this section, or if a regulated seller violates paragraph (13)
of such subsection, the Attorney General may by order prohibit
such seller or distributor (as the case may be) from selling any
scheduled listed chemical product. Any sale of such a product in
violation of such an order is subject to the same penalties as apply
under paragraph (2).
(B) An order under subparagraph (A) may be imposed only
through the same procedures as apply under section 304(c) for an
ctelli on DSK11ZRN23PROD with REPORTS
order to show cause.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00082 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
83
PROHIBITED ACTS C—PENALTIES
SEC. 403. (a) It shall be unlawful for any person knowingly or in-
tentionally—
(1) who is a registrant to distribute a controlled substance
classified in schedule I or II, in the course of his legitimate
business, except pursuant to an order or an order form as re-
quired by section 308 of this title;
(2) to use in the course of the manufacture, distribution, or
dispensing of a controlled substance, or to use for the purpose
of acquiring or obtaining a controlled substance, a registration
number which is fictitious, revoked, suspended, expired, or
issued to another person;
(3) to acquire or obtain possession of a controlled substance
by misrepresentation, fraud, forgery, deception, or subterfuge;
(4)(A) to furnish false or fraudulent material information in,
or omit any material information from, any application, report,
record, or other document required to be made, kept, or filed
under this title or title III, or (B) to present false or fraudulent
identification where the person is receiving or purchasing a
listed chemical and the person is required to present identifica-
tion under section 310(a);
(5) to make, distribute, or possess any punch, die, plate,
stone, or other thing designed to print, imprint, or reproduce
the trademark, trade name, or other identifying mark, imprint,
or device of another or any likeness of any of the foregoing
upon any drug or container or labeling thereof so as to render
such drug a counterfeit substance;
(6) to possess any three-neck round-bottom flask, tableting
machine, encapsulating machine, or gelatin capsule, or any
equipment, chemical, product, or material which may be used
to manufacture a controlled substance or listed chemical,
knowing, intending, or having reasonable cause to believe, that
it will be used to manufacture a controlled substance or listed
chemical in violation of this title or title III;
(7) to manufacture, distribute, export, or import any three-
neck round-bottom flask, tableting machine, encapsulating ma-
chine, or gelatin capsule, or any equipment, chemical, product,
or material which may be used to manufacture a controlled
substance or listed chemical, knowing, intending, or having
reasonable cause to believe, that it will be used to manufacture
a controlled substance or listed chemical in violation of this
title or title III or, in the case of an exportation, in violation
of this title or title III or of the laws of the country to which
it is exported;
(8) to create a chemical mixture for the purpose of evading
a requirement of section 310 or to receive a chemical mixture
created for that purpose; or
(9) to distribute, import, or export a list I chemical without
the registration required by this title or title III.
(b) It shall be unlawful for any person knowingly or intentionally
to use any communication facility in committing or in causing or
facilitating the commission of any act or acts constituting a felony
under any provision of this title or title III. Each separate use of
ctelli on DSK11ZRN23PROD with REPORTS
a communication facility shall be a separate offense under this sub-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00083 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
84
section. For purposes of this subsection, the term ‘‘communication
facility’’ means any and all public and private instrumentalities
used or useful in the transmission of writing, signs, signals, pic-
tures, or sounds of all kinds and includes mail, telephone, wire,
radio, and all other means of communication.
(c)(1) It shall be unlawful for any person to place in any news-
paper, magazine, handbill, or other publications, any written ad-
vertisement knowing that it has the purpose of seeking or offering
illegally to receive, buy, or distribute a Schedule I controlled sub-
stance. As used in this section the term ‘‘advertisement’’ includes,
in addition to its ordinary meaning, such advertisements as those
for a catalog of Schedule I controlled substances and any similar
written advertisement that has the purpose of seeking or offering
illegally to receive, buy, or distribute a Schedule I controlled sub-
stance. The term ‘‘advertisement’’ does not include material which
merely advocates the use of a similar material, which advocates a
position or practice, and does not attempt to propose or facilitate
an actual transaction in a Schedule I controlled substance.
(2)(A) It shall be unlawful for any person to knowingly or inten-
tionally use the Internet, or cause the Internet to be used, to adver-
tise the sale of, or to offer to sell, distribute, or dispense, a con-
trolled substance where such sale, distribution, or dispensing is not
authorized by this title or by the Controlled Substances Import and
Export Act.
(B) Examples of activities that violate subparagraph (A) include,
but are not limited to, knowingly or intentionally causing the place-
ment on the Internet of an advertisement that refers to or directs
prospective buyers to Internet sellers of controlled substances who
are not registered with a modification under section 303(f).
(C) Subparagraph (A) does not apply to material that either—
(i) merely advertises the distribution of controlled substances
by nonpractitioners to the extent authorized by their registra-
tion under this title; or
(ii) merely advocates the use of a controlled substance or in-
cludes pricing information without attempting to facilitate an
actual transaction involving a controlled substance.
(d)(1) Except as provided in paragraph (2), any person who vio-
lates this section shall be sentenced to a term of imprisonment of
not more than 4 years, a fine under title 18, United States Code,
or both; except that if any person commits such a violation after
one or more prior convictions of him for violation of this section, or
for a felony under any other provision of this title or title III or
other law of the United States relating to narcotic drugsø, mari-
huana,¿ or depressant or stimulant substances, have become final,
such person shall be sentenced to a term of imprisonment of not
more than 8 years, a fine under title 18, United States Code, or
both.
(2) Any person who, with the intent to manufacture or to facili-
tate the manufacture of methamphetamine, violates paragraph (6)
or (7) of subsection (a), shall be sentenced to a term of imprison-
ment of not more than 10 years, a fine under title 18, United
States Code, or both; except that if any person commits such a vio-
lation after one or more prior convictions of that person—
ctelli on DSK11ZRN23PROD with REPORTS
(A) for a violation of paragraph (6) or (7) of subsection (a);
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00084 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
85
(B) for a felony under any other provision of this subchapter
or subchapter II of this chapter; or
(C) under any other law of the United States or any State
relating to controlled substances or listed chemicals,
has become final, such person shall be sentenced to a term of im-
prisonment of not more than 20 years, a fine under title 18, United
States Code, or both.
(e) In addition to any other applicable penalty, any person con-
victed of a felony violation of this section relating to the receipt,
distribution, manufacture, exportation, or importation of a listed
chemical may be enjoined from engaging in any transaction involv-
ing a listed chemical for not more than ten years.
(f) INJUNCTIONS.—(1) In addition to any penalty provided in this
section, the Attorney General is authorized to commence a civil ac-
tion for appropriate declaratory or injunctive relief relating to vio-
lations of this section, section 402, or 416.
(2) Any action under this subsection may be brought in the dis-
trict court of the United States for the district in which the defend-
ant is located or resides or is doing business.
(3) Any order or judgment issued by the court pursuant to this
subsection shall be tailored to restrain violations of this section or
section 402.
(4) The court shall proceed as soon as practicable to the hearing
and determination of such an action. An action under this sub-
section is governed by the Federal Rules of Civil Procedure except
that, if an indictment has been returned against the respondent,
discovery is governed by the Federal Rules of Criminal Procedure.
* * * * * * *
DISTRIBUTION TO PERSONS UNDER AGE TWENTY-ONE
SEC. 418. (a) Except as provided in section 419, any person at
least eighteen years of age who violates section 401(a)(1) by distrib-
uting a controlled substance to a person under twenty-one years of
age is (except as provided in subsection (b)) subject to (1) twice the
maximum punishment authorized by section 401(b), and (2) at
least twice any term of supervised release authorized by section
401(b), for a first offense involving the same controlled substance
and schedule. Except to the extent a greater minimum sentence is
otherwise provided by section 401(b), a term of imprisonment
under this subsection shall be not less than one year. øThe manda-
tory minimum sentencing provisions of this subsection shall not
apply to offenses involving 5 grams or less of marihuana.¿
(b) Except as provided in section 419, any person at least eight-
een years of age who violates section 401(a)(1) by distributing a
controlled substance to a person under twenty-one years of age
after a prior conviction under subsection (a) of this section (or
under section 303(b)(2) of the Federal Food, Drug, and Cosmetic
Act as in effect prior to the effective date of section 701(b) of this
Act) has become final, is subject to (1) three times the maximum
punishment authorized by section 401(b), and (2) at least three
times any term of supervised release authorized by section 401(b),
for a second offense or subsequent offense involving the same con-
trolled substance and schedule. Except to the extent a greater min-
ctelli on DSK11ZRN23PROD with REPORTS
imum sentence is otherwise provided by section 401(b), a term of
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00085 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
86
imprisonment under this subsection shall be not less than one
year. Penalties for third and subsequent convictions shall be gov-
erned by section 401(b)(1)(A).
SEC. 419. DISTRIBUTION IN OR NEAR SCHOOLS(a) Any person who
violates section 401(a)(1) or section 416 by distributing, possessing
with intent to distribute, or manufacturing a controlled substance
in or on, or within one thousand feet of, the real property com-
prising a public or private elementary, vocational, or secondary
school or a public or private college, junior college, or university,
or a playground, or housing facility owned by a public housing au-
thority, or within 100 feet of a public or private youth center, pub-
lic swimming pool, or video arcade facility, is (except as provided
in subsection (b)) subject to (1) twice the maximum punishment au-
thorized by section 401(b) of this title; and (2) at least twice any
term of supervised release authorized by section 401(b) for a first
offense. A fine up to twice that authorized by section 401(b) may
be imposed in addition to any term of imprisonment authorized by
this subsection. Except to the extent a greater minimum sentence
is otherwise provided by section 401(b), a person shall be sentenced
under this subsection to a term of imprisonment of not less than
one year. øThe mandatory minimum sentencing provisions of this
paragraph shall not apply to offenses involving 5 grams or less of
marihuana.¿
(b) Any person who violates section 401(a)(1) or section 416 by
distributing, possessing with intent to distribute, or manufacturing
a controlled substance in or on, or within one thousand feet of, the
real property comprising a public or private elementary, vocational,
or secondary school or a public or private college, junior college, or
university, or a playground, or housing facility owned by a public
housing authority, or within 100 feet of a public or private youth
center, public swimming pool, or video arcade facility, after a prior
conviction under subsection (a) has become final is punishable (1)
by the greater of (A) a term of imprisonment of not less than three
years and not more than life imprisonment or (B) three times the
maximum punishment authorized by section 401(b) for a first of-
fense, and (2) at least three times any term of supervised release
authorized by section 401(b) of this title for a first offense. A fine
up to three times that authorized by section 401(b) may be imposed
in addition to any term of imprisonment authorized by this sub-
section. Except to the extent a greater minimum sentence is other-
wise provided by section 401(b), a person shall be sentenced under
this subsection to a term of imprisonment of not less than three
years. Penalties for third and subsequent convictions shall be gov-
erned by section 401(b)(1)(A).
(c) Notwithstanding any other law, any person at least 21 years
of age who knowingly and intentionally—
(1) employs, hires, uses, persuades, induces, entices, or co-
erces a person under 18 years of age to violate this section; or
(2) employs, hires, uses, persuades, induces, entices, or co-
erces a person under 18 years of age to assist in avoiding de-
tection or apprehension for any offense under this section by
any Federal, State, or local law enforcement official,
is punishable by a term of imprisonment, a fine, or both, up to tri-
ctelli on DSK11ZRN23PROD with REPORTS
ple those authorized by section 401.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00086 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
87
(d) In the case of any mandatory minimum sentence imposed
under subsection (b), imposition or execution of such sentence shall
not be suspended and probation shall not be granted. An individual
convicted under this section shall not be eligible for parole until the
individual has served the mandatory minimum term of imprison-
ment as provided by this section.
(e) For the purposes of this section—
(1) The term ‘‘playground’’ means any outdoor facility (in-
cluding any parking lot appurtenant thereto) intended for
recreation, open to the public, and with any portion thereof
containing three or more separate apparatus intended for the
recreation of children including, but not limited to, sliding
boards, swingsets, and teeterboards.
(2) The term ‘‘youth center’’ means any recreational facility
and/or gymnasium (including any parking lot appurtenant
thereto), intended primarily for use by persons under 18 years
of age, which regularly provides athletic, civic, or cultural ac-
tivities.
(3) The term ‘‘video arcade facility’’ means any facility, le-
gally accessible to persons under 18 years of age, intended pri-
marily for the use of pinball and video machines for amuse-
ment containing a minimum of ten pinball and/or video ma-
chines.
(4) The term ‘‘swimming pool’’ includes any parking lot ap-
purtenant thereto.
* * * * * * *
DRUG PARAPHERNALIA
SEC. 422. (a) It is unlawful for any person—
(1) to sell or offer for sale drug paraphernalia;
(2) to use the mails or any other facility of interstate com-
merce to transport drug paraphernalia; or
(3) to import or export drug paraphernalia.
(b) Anyone convicted of an offense under subsection (a) of this
section shall be imprisoned for not more than three years and fined
under title 18, United States Code.
(c) Any drug paraphernalia involved in any violation of sub-
section (a) of this section shall be subject to seizure and forfeiture
upon the conviction of a person for such violation. Any such para-
phernalia shall be delivered to the Administrator of General Serv-
ices, General Services Administration, who may order such para-
phernalia destroyed or may authorize its use for law enforcement
or educational purposes by Federal, State, or local authorities.
(d) The term ‘‘drug paraphernalia’’ means any equipment, prod-
uct, or material of any kind which is primarily intended or de-
signed for use in manufacturing, compounding, converting, con-
cealing, producing, processing, preparing, injecting, ingesting, in-
haling, or otherwise introducing into the human body a controlled
substance, possession of which is unlawful under the Controlled
Substances Act (title II of Public Law 91–513). It includes items
primarily intended or designed for use in ingesting, inhaling, or
otherwise introducing ømarijuana,¿ cocaine, hashish, hashish oil,
PCP, methamphetamine, or amphetamines into the human body,
ctelli on DSK11ZRN23PROD with REPORTS
such as—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00087 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
88
(1) metal, wooden, acrylic, glass, stone, plastic, or ceramic
pipes with or without screens, permanent screens, hashish
heads, or punctured metal bowls;
(2) water pipes;
(3) carburetion tubes and devices;
(4) smoking and carburetion masks;
(5) roach clips: meaning objects used to hold burning
materialø, such as a marihuana cigarette,¿ that has become
too small or too short to be held in the hand;
(6) miniature spoons with level capacities of one-tenth cubic
centimeter or less;
(7) chamber pipes;
(8) carburetor pipes;
(9) electric pipes;
(10) air-driven pipes;
(11) chillums;
(12) bongs;
(13) ice pipes or chillers;
(14) wired cigarette papers; or
(15) cocaine freebase kits.
(e) In determining whether an item constitutes drug para-
phernalia, in addition to all other logically relevant factors, the fol-
lowing may be considered:
(1) instructions, oral or written, provided with the item con-
cerning its use;
(2) descriptive materials accompanying the item which ex-
plain or depict its use;
(3) national and local advertising concerning its use;
(4) the manner in which the item is displayed for sale;
(5) whether the owner, or anyone in control of the item, is
a legitimate supplier of like or related items to the community,
such as a licensed distributor or dealer of tobacco products;
(6) direct or circumstantial evidence of the radio of sales of
the item(s) to the total sales of the business enterprise;
(7) the existence and scope of legitimate uses of the item in
the community; and
(8) expert testimony concerning its use.
(f) This section shall not apply to—
(1) any person authorized by local, State, or Federal law to
manufacture, possess, or distribute such items; or
(2) any item that, in the normal lawful course of business,
is imported, exported, transported, or sold through the mail or
by any other means, and traditionally intended for use with to-
bacco products, including any pipe, paper, or accessory.
* * * * * * *
PART E—ADMINISTRATIVE AND ENFORCEMENT PROVISIONS
* * * * * * *
PAYMENTS AND ADVANCES
SEC. 516. (a) The Attorney General is authorized to pay any per-
son, from funds appropriated for the Drug Enforcement Adminis-
tration, for information concerning a violation of this title, such
ctelli on DSK11ZRN23PROD with REPORTS
sum or sums of money as he may deem appropriate, without ref-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00088 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
89
erence to any moieties or rewards to which such person may other-
wise be entitled by law.
(b) Moneys expended from appropriations of the Drug Enforce-
ment Administration for purchase of controlled substances and sub-
sequently recovered shall be reimbursed to the current appropria-
tion for the Bureau.
(c) The Attorney General is authorized to direct the advance of
funds by the Treasury Department in connection with the enforce-
ment of this title. Section 16 of Public Law 96–132 (93 Stat. 1049)
amended this title in several other places by striking references to
the Bureau of Narcotics and Dangerous Drugs and inserting ref-
erences to the Drug Enforcement Administration.
(d)(1) There is established in the Treasury a trust fund to be
known as the ‘‘Drug Pollution Fund’’ (hereinafter referred to in this
subsection as the ‘‘Fund’’), consisting of amounts appropriated or
credited to such Fund under øsection 401(b)(6)¿ section 401(b)(5).
(2) There are hereby appropriated to the Fund amounts equiva-
lent to the fines imposed under øsection 401(b)(6)¿ section
401(b)(5).
(3) Amounts in the Fund shall be available, as provided in appro-
priations Acts, for the purpose of making payments in accordance
with paragraph (4) for the clean up of certain pollution resulting
from the actions referred to in øsection 401(b)(6)¿ section 401(b)(5).
(4)(A) The Secretary of the Treasury, after consultation with the
Attorney General, shall make payments under paragraph (3), in
such amounts as the Secretary determines appropriate, to the
heads of executive agencies or departments that meet the require-
ments of subparagraph (B).
(B) In order to receive a payment under paragraph (3), the head
of an executive agency or department shall submit an application
in such form and containing such information as the Secretary of
the Treasury shall by regulation require. Such application shall
contain a description of the fine imposed under øsection 401(b)(6)¿
section 401(b)(5), the circumstances surrounding the imposition of
such fine, and the type and severity of pollution that resulted from
the actions to which such fine applies.
(5) For purposes of subchapter B of chapter 98 of the Internal
Revenue Code of 1986, the Fund established under this paragraph
shall be treated in the same manner as a trust fund established
under subchapter A of such chapter.
* * * * * * *
NATIONAL FOREST SYSTEM DRUG CONTROL ACT OF
1986
* * * * * * *
TITLE XV—NATIONAL FOREST SYSTEM DRUG CONTROL
* * * * * * *
SEC. 15002. PURPOSE.
(a) The purpose of this title is to authorize the Secretary of Agri-
culture (hereinafter in this title referred to as the ‘‘Secretary’’) to
ctelli on DSK11ZRN23PROD with REPORTS
take actions necessary, in connection with the administration and
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00089 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
90
use of the National Forest System, to prevent the manufacture, dis-
tribution, or dispensing of ømarijuana and other¿ controlled sub-
stances.
(b) Nothing in this title shall diminish in any way the law en-
forcement authority of the Forest Service.
(c) As used in this title, the terms ‘‘manufacture’’, ‘‘dispense’’, and
‘‘distribute’’ shall have the same meaning given such terms in sec-
tion 102 of the Controlled Substances Act (21 U.S.C. 802).
SEC. 15003. POWERS.
For the purposes of this title, if specifically designated by the
Secretary and specially trained, not to exceed 1,000 special agents
and law enforcement officers of the Forest Service when in the per-
formance of their duties shall have authority to—
(1) carry firearms;
(2) conduct, within the exterior boundaries of the National
Forest System, investigations of violations of and enforce sec-
tion 401 of Controlled Substances Act (21 U.S.C. 841) and
other criminal violations relating to ømarijuana and other¿
controlled substances that are manufactured, distributed, or
dispensed on National Forest System lands and to conduct
such investigations and enforcement of such laws outside the
exterior boundaries of the National Forest System for offenses
committed within the National Forest System or which affect
the administration of the National Forest System (including
the pursuit of persons suspected of such offenses who flee the
National Forest System to avoid arrest);
(3) make arrests with a warrant or process for misdemeanor
violations, or without a warrant or process for violations of
such misdemeanors that any such officer or employee has prob-
able cause to believe are being committed in his presence or
view, or for a felony with a warrant or without a warrant if
he has probable cause to believe that the person to be arrested
has committed or is committing such felony, for offenses com-
mitted within the National Forest System or which affect the
administration of the National Forest System;;
(4) serve warrants and other process issued by a court or of-
ficer of competent jurisdiction;
(5) search with or without warrant or process any person,
place, or conveyance according to Federal law or rule of law;
and
(6) seize with or without warrant or process any evidentiary
item according to Federal law or rule of law.
SEC. 15004. COOPERATION.
For the purposes of this title, in exercising the authority provided
by section 15003—
(1) the Forest Service shall cooperate with any other Federal
law enforcement agency having primary investigative jurisdic-
tion over the offense committed;
(2) the Secretary may authorize the Forest Service to cooper-
ate with the law enforcement officials of any Federal agency,
State, or political subdivision in the investigation of violations
of and enforcement of section 401 of the Controlled Substances
Act (21 U.S.C. 8411), other laws and regulations relating to
ctelli on DSK11ZRN23PROD with REPORTS
ømarijuana and other¿ controlled substances, and State drug
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00090 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
91
control laws or ordinances for offenses committed within the
National Forest System or which affect the administration of
the National Forest System.
(3) the Forest Service shall cooperate with the Attorney Gen-
eral in carrying out the seizure and forfeiture provisions of sec-
tion 511 of the Controlled Substances Act (21 U.S.C. 881) for
violations of the Controlled Substances Act relating to offenses
committed within the National Forest System, or which affect
the administration of the National Forest System;
(4) the Secretary is authorized to designate law enforcement
officers of any other Federal agency, when the Secretary deter-
mines such designation to be economical and in the public in-
terest, and with the concurrence of that agency, to exercise the
powers and authorities of the Forest Service while assisting
the Forest Service in the National Forest System, or for activi-
ties administered by the Forest Service; and
(5) the Forest Service is authorized to accept law enforce-
ment designation from any other Federal agency or agency of
a State or political subdivision thereof for the purpose of co-
operating in a multi-agency law enforcement task force inves-
tigation of violations of the Controlled Substances Act and
other offenses committed in the course of or in connection with
such violations.
* * * * * * *
TITLE 18, UNITED STATES CODE
* * * * * * *
PART I—CRIMES
* * * * * * *
CHAPTER 119—WIRE AND ELECTRONIC COMMUNICA-
TIONS INTERCEPTION AND INTERCEPTION OF ORAL
COMMUNICATIONS
* * * * * * *
§ 2516. Authorization for interception of wire, oral, or elec-
tronic communications
(1) The Attorney General, Deputy Attorney General, Asso-
ciate Attorney General, or any Assistant Attorney General, any
acting Assistant Attorney General, or any Deputy Assistant At-
torney General or acting Deputy Assistant Attorney General in
the Criminal Division or National Security Division specially
designated by the Attorney General, may authorize an applica-
tion to a Federal judge of competent jurisdiction for, and such
judge may grant in conformity with section 2518 of this chap-
ter an order authorizing or approving the interception of wire
or oral communications by the Federal Bureau of Investigation,
or a Federal agency having responsibility for the investigation
of the offense as to which the application is made, when such
ctelli on DSK11ZRN23PROD with REPORTS
interception may provide or has provided evidence of—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00091 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
92
(a) any offense punishable by death or by imprisonment
for more than one year under sections 2122 and 2274
through 2277 of title 42 of the United States Code (relat-
ing to the enforcement of the Atomic Energy Act of 1954),
section 2284 of title 42 of the United States Code (relating
to sabotage of nuclear facilities or fuel), or under the fol-
lowing chapters of this title: chapter 10 (relating to biologi-
cal weapons), chapter 37 (relating to espionage), chapter
55 (relating to kidnapping), chapter 90 (relating to protec-
tion of trade secrets), chapter 105 (relating to sabotage),
chapter 115 (relating to treason), chapter 102 (relating to
riots), chapter 65 (relating to malicious mischief), chapter
111 (relating to destruction of vessels), or chapter 81 (re-
lating to piracy);
(b) a violation of section 186 or section 501(c) of title 29,
United States Code (dealing with restrictions on payments
and loans to labor organizations), or any offense which in-
volves murder, kidnapping, robbery, or extortion, and
which is punishable under this title;
(c) any offense which is punishable under the following
sections of this title: section 37 (relating to violence at
international airports), section 43 (relating to animal en-
terprise terrorism), section 81 (arson within special mari-
time and territorial jurisdiction), section 201 (bribery of
public officials and witnesses), section 215 (relating to
bribery of bank officials), section 224 (bribery in sporting
contests), subsection (d), (e), (f), (g), (h), or (i) of section 844
(unlawful use of explosives), section 1032 (relating to con-
cealment of assets), section 1084 (transmission of wagering
information), section 751 (relating to escape), section 832
(relating to nuclear and weapons of mass destruction
threats), section 842 (relating to explosive materials), sec-
tion 930 (relating to possession of weapons in Federal fa-
cilities), section 1014 (relating to loans and credit applica-
tions generally; renewals and discounts), section 1114 (re-
lating to officers and employees of the United States), sec-
tion 1116 (relating to protection of foreign officials), sec-
tions 1503, 1512, and 1513 (influencing or injuring an offi-
cer, juror, or witness generally), section 1510 (obstruction
of criminal investigations), section 1511 (obstruction of
State or local law enforcement), section 1581 (peonage),
section 1582 (vessels for slave trade), section 1583 (entice-
ment into slavery), section 1584 (involuntary servitude),
section 1585 (seizure, detention, transportation or sale of
slaves), section 1586 (service on vessels in slave trade),
section 1587 (possession of slaves aboard vessel), section
1588 (transportation of slaves from United States), section
1589 (forced labor), section 1590 (trafficking with respect
to peonage, slavery, involuntary servitude, or forced labor),
section 1591 (sex trafficking of children by force, fraud, or
coercion), section 1592 (unlawful conduct with respect to
documents in furtherance of trafficking, peonage, slavery,
involuntary servitude, or forced labor), section 1751 (Presi-
dential and Presidential staff assassination, kidnapping,
ctelli on DSK11ZRN23PROD with REPORTS
and assault), section 1951 (interference with commerce by
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00092 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
93
threats or violence), section 1952 (interstate and foreign
travel or transportation in aid of racketeering enterprises),
section 1958 (relating to use of interstate commerce facili-
ties in the commission of murder for hire), section 1959
(relating to violent crimes in aid of racketeering activity),
section 1954 (offer, acceptance, or solicitation to influence
operations of employee benefit plan), section 1955 (prohibi-
tion of business enterprises of gambling), section 1956
(laundering of monetary instruments), section 1957 (relat-
ing to engaging in monetary transactions in property de-
rived from specified unlawful activity), section 659 (theft
from interstate shipment), section 664 (embezzlement from
pension and welfare funds), section 1343 (fraud by wire,
radio, or television), section 1344 (relating to bank fraud),
section 1992 (relating to terrorist attacks against mass
transportation), sections 2251 and 2252 (sexual exploi-
tation of children), section 2251A (selling or buying of chil-
dren), section 2252A (relating to material constituting or
containing child pornography), section 1466A (relating to
child obscenity), section 2260 (production of sexually ex-
plicit depictions of a minor for importation into the United
States), sections 2421, 2422, 2423, and 2425 (relating to
transportation for illegal sexual activity and related
crimes), sections 2312, 2313, 2314, and 2315 (interstate
transportation of stolen property), section 2321 (relating to
trafficking in certain motor vehicles or motor vehicle
parts), section 2340A (relating to torture), section 1203 (re-
lating to hostage taking), section 1029 (relating to fraud
and related activity in connection with access devices), sec-
tion 3146 (relating to penalty for failure to appear), section
3521(b)(3) (relating to witness relocation and assistance),
section 32 (relating to destruction of aircraft or aircraft fa-
cilities), section 38 (relating to aircraft parts fraud), section
1963 (violations with respect to racketeer influenced and
corrupt organizations), section 115 (relating to threatening
or retaliating against a Federal official), section 1341 (re-
lating to mail fraud), a felony violation of section 1030 (re-
lating to computer fraud and abuse), section 351 (viola-
tions with respect to congressional, Cabinet, or Supreme
Court assassinations, kidnapping, and assault), section 831
(relating to prohibited transactions involving nuclear ma-
terials), section 33 (relating to destruction of motor vehi-
cles or motor vehicle facilities), section 175 (relating to bio-
logical weapons), section 175c (relating to variola virus),
section 956 (conspiracy to harm persons or property over-
seas), a felony violation of section 1028 (relating to produc-
tion of false identification documentation), section 1425
(relating to the procurement of citizenship or nationaliza-
tion unlawfully), section 1426 (relating to the reproduction
of naturalization or citizenship papers), section 1427 (relat-
ing to the sale of naturalization or citizenship papers), sec-
tion 1541 (relating to passport issuance without authority),
section 1542 (relating to false statements in passport ap-
plications), section 1543 (relating to forgery or false use of
ctelli on DSK11ZRN23PROD with REPORTS
passports), section 1544 (relating to misuse of passports),
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00093 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
94
section 1546 (relating to fraud and misuse of visas, per-
mits, and other documents), or section 555 (relating to con-
struction or use of international border tunnels);
(d) any offense involving counterfeiting punishable under
section 471, 472, or 473 of this title;
(e) any offense involving fraud connected with a case
under title 11 or the manufacture, importation, receiving,
concealment, buying, selling, or otherwise dealing in nar-
cotic drugs, ømarihuana,¿ or other dangerous drugs, pun-
ishable under any law of the United States;
(f) any offense including extortionate credit transactions
under sections 892, 893, or 894 of this title;
(g) a violation of section 5322 of title 31, United States
Code (dealing with the reporting of currency transactions),
or section 5324 of title 31, United States Code (relating to
structuring transactions to evade reporting requirement
prohibited);
(h) any felony violation of sections 2511 and 2512 (relat-
ing to interception and disclosure of certain communica-
tions and to certain intercepting devices) of this title;
(i) any felony violation of chapter 71 (relating to obscen-
ity) of this title;
(j) any violation of section 60123(b) (relating to destruc-
tion of a natural gas pipeline), section 46502 (relating to
aircraft piracy), the second sentence of section 46504 (re-
lating to assault on a flight crew with dangerous weapon),
or section 46505(b)(3) or (c) (relating to explosive or incen-
diary devices, or endangerment of human life, by means of
weapons on aircraft) of title 49;
(k) any criminal violation of section 2778 of title 22 (re-
lating to the Arms Export Control Act);
(l) the location of any fugitive from justice from an of-
fense described in this section;
(m) a violation of section 274, 277, or 278 of the Immi-
gration and Nationality Act (8 U.S.C. 1324, 1327, or 1328)
(relating to the smuggling of aliens);
(n) any felony violation of sections 922 and 924 of title
18, United States Code (relating to firearms);
(o) any violation of section 5861 of the Internal Revenue
Code of 1986 (relating to firearms);
(p) a felony violation of section 1028 (relating to produc-
tion of false identification documents), section 1542 (relat-
ing to false statements in passport applications), section
1546 (relating to fraud and misuse of visas, permits, and
other documents), section 1028A (relating to aggravated
identity theft) of this title or a violation of section 274,
277, or 278 of the Immigration and Nationality Act (relat-
ing to the smuggling of aliens); or
(q) any criminal violation of section 229 (relating to
chemical weapons) or section 2332, 2332a, 2332b, 2332d,
2332f, 2332g, 2332h 2339, 2339A, 2339B, 2339C, or 2339D
of this title (relating to terrorism);
(r) any criminal violation of section 1 (relating to illegal
restraints of trade or commerce), 2 (relating to illegal mo-
ctelli on DSK11ZRN23PROD with REPORTS
nopolizing of trade or commerce), or 3 (relating to illegal
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00094 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
95
restraints of trade or commerce in territories or the Dis-
trict of Columbia) of the Sherman Act (15 U.S.C. 1, 2, 3);
(s) any violation of section 670 (relating to theft of med-
ical products);
(t) any violation of the Export Control Reform Act of
2018; or
(u) any conspiracy to commit any offense described in
any subparagraph of this paragraph.
(2) The principal prosecuting attorney of any State, or the prin-
cipal prosecuting attorney of any political subdivision thereof, if
such attorney is authorized by a statute of that State to make ap-
plication to a State court judge of competent jurisdiction for an
order authorizing or approving the interception of wire, oral, or
electronic communications, may apply to such judge for, and such
judge may grant in conformity with section 2518 of this chapter
and with the applicable State statute an order authorizing, or ap-
proving the interception of wire, oral, or electronic communications
by investigative or law enforcement officers having responsibility
for the investigation of the offense as to which the application is
made, when such interception may provide or has provided evi-
dence of the commission of the offense of murder, kidnapping,
human trafficking, child sexual exploitation, child pornography pro-
duction, prostitution, gambling, robbery, bribery, extortion, or deal-
ing in narcotic drugs, ømarihuana¿ or other dangerous drugs, or
other crime dangerous to life, limb, or property, and punishable by
imprisonment for more than one year, designated in any applicable
State statute authorizing such interception, or any conspiracy to
commit any of the foregoing offenses.
(3) Any attorney for the Government (as such term is defined for
the purposes of the Federal Rules of Criminal Procedure) may au-
thorize an application to a Federal judge of competent jurisdiction
for, and such judge may grant, in conformity with section 2518 of
this title, an order authorizing or approving the interception of
electronic communications by an investigative or law enforcement
officer having responsibility for the investigation of the offense as
to which the application is made, when such interception may pro-
vide or has provided evidence of any Federal felony.
* * * * * * *
TITLE 49, UNITED STATES CODE
* * * * * * *
SUBTITLE V—RAIL PROGRAMS
* * * * * * *
PART A—SAFETY
* * * * * * *
CHAPTER 201—GENERAL
ctelli on DSK11ZRN23PROD with REPORTS
* * * * * * *
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00095 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
96
SUBCHAPTER II—PARTICULAR ASPECTS OF SAFETY
* * * * * * *
§ 20140. Alcohol and controlled substances testing
(a) DEFINITION.—In this section, ‘‘controlled substance’’ ømeans
any substance¿ means—
(A) any substance under section 102 of the Comprehen-
sive Drug Abuse Prevention and Control Act of 1970 (21
U.S.C. 802) specified by the Secretary of Transportationø.¿
; and
(B) any substance not covered under subparagraph (A)
that was a substance under such section as of December 1,
2018, and specified by the Secretary of Transportation.
(b) GENERAL.—(1) In the interest of safety, the Secretary of
Transportation shall prescribe regulations and issue orders, not
later than October 28, 1992, related to alcohol and controlled sub-
stances use in railroad operations. The regulations shall establish
a program requiring—
(A) a railroad carrier to conduct preemployment, reasonable
suspicion, random, and post-accident testing of all railroad em-
ployees responsible for safety-sensitive functions (as decided by
the Secretary) for the use of a controlled substance in violation
of law or a United States Government regulation, and to con-
duct reasonable suspicion, random, and post-accident testing of
such employees for the use of alcohol in violation of law or a
United States Government regulation; the regulations shall
permit such railroad carriers to conduct preemployment testing
of such employees for the use of alcohol; and
(B) when the Secretary considers it appropriate, disqualifica-
tion for an established period of time or dismissal of any em-
ployee found—
(i) to have used or been impaired by alcohol when on
duty; or
(ii) to have used a controlled substance, whether or not
on duty, except as allowed for medical purposes by law or
a regulation or order under this chapter.
(2) When the Secretary of Transportation considers it appro-
priate in the interest of safety, the Secretary may prescribe regula-
tions and issue orders requiring railroad carriers to conduct peri-
odic recurring testing of railroad employees responsible for safety-
sensitive functions (as decided by the Secretary) for the use of alco-
hol or a controlled substance in violation of law or a Government
regulation.
(c) TESTING AND LABORATORY REQUIREMENTS.—In carrying out
this section, the Secretary of Transportation shall develop require-
ments that shall—
(1) promote, to the maximum extent practicable, individual
privacy in the collection of specimens;
(2) for laboratories and testing procedures for controlled sub-
stances, incorporate the Department of Health and Human
Services scientific and technical guidelines dated April 11,
1988, and any amendments to those guidelines, including man-
datory guidelines establishing—
ctelli on DSK11ZRN23PROD with REPORTS
(A) comprehensive standards for every aspect of labora-
tory controlled substances testing and laboratory proce-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00096 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
97
dures to be applied in carrying out this section, including
standards requiring the use of the best available tech-
nology to ensure the complete reliability and accuracy of
controlled substances tests and strict procedures governing
the chain of custody of specimens collected for controlled
substances testing;
(B) the minimum list of controlled substances for which
individuals may be tested; and
(C) appropriate standards and procedures for periodic re-
view of laboratories and criteria for certification and rev-
ocation of certification of laboratories to perform controlled
substances testing in carrying out this section;
(3) require that a laboratory involved in controlled sub-
stances testing under this section have the capability and facil-
ity, at the laboratory, of performing screening and confirmation
tests;
(4) provide that all tests indicating the use of alcohol or a
controlled substance in violation of law or a Government regu-
lation be confirmed by a scientifically recognized method of
testing capable of providing quantitative information about al-
cohol or a controlled substance;
(5) provide that each specimen be subdivided, secured, and
labeled in the presence of the tested individual and that a part
of the specimen be retained in a secure manner to prevent the
possibility of tampering, so that if the individual’s confirmation
test results are positive the individual has an opportunity to
have the retained part tested by a 2d confirmation test done
independently at another certified laboratory if the individual
requests the 2d confirmation test not later than 3 days after
being advised of the results of the first confirmation test;
(6) ensure appropriate safeguards for testing to detect and
quantify alcohol in breath and body fluid samples, including
urine and blood, through the development of regulations that
may be necessary and in consultation with the Secretary of
Health and Human Services;
(7) provide for the confidentiality of test results and medical
information (other than information about alcohol or a con-
trolled substance) of employees, except that this clause does
not prevent the use of test results for the orderly imposition of
appropriate sanctions under this section; and
(8) ensure that employees are selected for tests by non-
discriminatory and impartial methods, so that no employee is
harassed by being treated differently from other employees in
similar circumstances.
(d) REHABILITATION.—The Secretary of Transportation shall pre-
scribe regulations or issue orders establishing requirements for re-
habilitation programs that at least provide for the identification
and opportunity for treatment of railroad employees responsible for
safety-sensitive functions (as decided by the Secretary) in need of
assistance in resolving problems with the use of alcohol or a con-
trolled substance in violation of law or a Government regulation.
The Secretary shall decide on the circumstances under which em-
ployees shall be required to participate in a program. Each railroad
carrier is encouraged to make such a program available to all of
ctelli on DSK11ZRN23PROD with REPORTS
its employees in addition to employees responsible for safety-sen-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00097 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
98
sitive functions. This subsection does not prevent a railroad carrier
from establishing a program under this subsection in cooperation
with another railroad carrier.
(e) INTERNATIONAL OBLIGATIONS AND FOREIGN LAWS AND REGU-
LATIONS.—In carrying out this section, the Secretary of Transpor-
tation—
(1) shall establish only requirements that are consistent with
international obligations of the United States; and
(2) shall consider applicable laws and regulations of foreign
countries.
(f) OTHER REGULATIONS ALLOWED.—This section does not pre-
vent the Secretary of Transportation from continuing in effect,
amending, or further supplementing a regulation prescribed or
order issued before October 28, 1991, governing the use of alcohol
or a controlled substance in railroad operations.
* * * * * * *
SUBTITLE VI—MOTOR VEHICLE AND DRIVER
PROGRAMS
* * * * * * *
PART B—COMMERCIAL
* * * * * * *
CHAPTER 313—COMMERCIAL MOTOR VEHICLE
OPERATORS
* * * * * * *
§ 31301. Definitions
In this chapter—
(1) ‘‘alcohol’’ has the same meaning given the term ‘‘alcoholic
beverage’’ in section 158(c) of title 23.
(2) ‘‘commerce’’ means trade, traffic, and transportation—
(A) in the jurisdiction of the United States between a
place in a State and a place outside that State (including
a place outside the United States); or
(B) in the United States that affects trade, traffic, and
transportation described in subclause (A) of this clause.
(3) ‘‘commercial driver’s license’’ means a license issued by a
State to an individual authorizing the individual to operate a
class of commercial motor vehicles.
(4) ‘‘commercial motor vehicle’’ means a motor vehicle used
in commerce to transport passengers or property that—
(A) has a gross vehicle weight rating or gross vehicle
weight of at least 26,001 pounds, whichever is greater, or
a lesser gross vehicle weight rating or gross vehicle weight
the Secretary of Transportation prescribes by regulation,
but not less than a gross vehicle weight rating of 10,001
pounds;
(B) is designed to transport at least 16 passengers in-
ctelli on DSK11ZRN23PROD with REPORTS
cluding the driver; or
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00098 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
99
(C) is used to transport material found by the Secretary
to be hazardous under section 5103 of this title, except
that a vehicle shall not be included as a commercial motor
vehicle under this subclause if—
(i) the vehicle does not satisfy the weight require-
ments of subclause (A) of this clause;
(ii) the vehicle is transporting material listed as haz-
ardous under section 306(a) of the Comprehensive En-
vironmental Response, Compensation, and Liability
Act of 1980 (42 U.S.C. 9656(a)) and is not otherwise
regulated by the Secretary or is transporting a con-
sumer commodity or limited quantity of hazardous
material as defined in section 171.8 of title 49, Code
of Federal Regulations; and
(iii) the Secretary does not deny the application of
this exception to the vehicle (individually or as part of
a class of motor vehicles) in the interest of safety.
(5) except in øsection 31306,¿ sections 31306, 31306a, and
subsections (b) and (c) of section 31310, ‘‘controlled substance’’
has the same meaning given that term in section 102 of the
Comprehensive Drug Abuse Prevention and Control Act of
1970 (21 U.S.C. 802).
(6) ‘‘driver’s license’’ means a license issued by a State to an
individual authorizing the individual to operate a motor vehi-
cle on highways.
(7) ‘‘employee’’ means an operator of a commercial motor ve-
hicle (including an independent contractor when operating a
commercial motor vehicle) who is employed by an employer.
(8) ‘‘employer’’ means a person (including the United States
Government, a State, or a political subdivision of a State) that
owns or leases a commercial motor vehicle or assigns employ-
ees to operate a commercial motor vehicle.
(9) ‘‘felony’’ means an offense under a law of the United
States or a State that is punishable by death or imprisonment
for more than one year.
(10) ‘‘foreign commercial driver’’ means an individual li-
censed to operate a commercial motor vehicle by an authority
outside the United States, or a citizen of a foreign country who
operates a commercial motor vehicle in the United States.
(11) ‘‘hazardous material’’ has the same meaning given that
term in section 5102 of this title.
(12) ‘‘motor vehicle’’ means a vehicle, machine, tractor, trail-
er, or semitrailer propelled or drawn by mechanical power and
used on public streets, roads, or highways, but does not include
a vehicle, machine, tractor, trailer, or semitrailer operated only
on a rail line or custom harvesting farm machinery.
(13) ‘‘serious traffic violation’’ means—
(A) excessive speeding, as defined by the Secretary by
regulation;
(B) reckless driving, as defined under State or local law;
(C) a violation of a State or local law on motor vehicle
traffic control (except a parking violation) and involving a
fatality, other than a violation to which section
ctelli on DSK11ZRN23PROD with REPORTS
31310(b)(1)(E) or 31310(c)(1)(E) applies;
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00099 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
100
(D) driving a commercial motor vehicle when the indi-
vidual has not obtained a commercial driver’s license;
(E) driving a commercial motor vehicle when the indi-
vidual does not have in his or her possession a commercial
driver’s license unless the individual provides, by the date
that the individual must appear in court or pay any fine
with respect to the citation, to the enforcement authority
that issued the citation proof that the individual held a
valid commercial driver’s license on the date of the cita-
tion;
(F) driving a commercial motor vehicle when the indi-
vidual has not met the minimum testing standards—
(i) under section 31305(a)(3) for the specific class of
vehicle the individual is operating; or
(ii) under section 31305(a)(5) for the type of cargo
the vehicle is carrying; and
(G) any other similar violation of a State or local law on
motor vehicle traffic control (except a parking violation)
that the Secretary designates by regulation as serious.
(14) ‘‘State’’ means a State of the United States and the Dis-
trict of Columbia.
(15) ‘‘United States’’ means the States of the United States
and the District of Columbia.
* * * * * * *
§ 31306. Alcohol and controlled substances testing
(a) DEFINITION.—In this section and section 31306a, ‘‘controlled
substance’’ ømeans any substance¿ means—
(A) any substance under section 102 of the Comprehen-
sive Drug Abuse Prevention and Control Act of 1970 (21
U.S.C. 802) specified by the Secretary of Transportationø.¿
; and
(B) any substance not covered under subparagraph (A)
that was a substance under such section as of December 1,
2018, and specified by the Secretary of Transportation.
(b) TESTING PROGRAM FOR OPERATORS OF COMMERCIAL MOTOR
VEHICLES.—(1)(A) In the interest of commercial motor vehicle safe-
ty, the Secretary of Transportation shall prescribe regulations that
establish a program requiring motor carriers to conduct preemploy-
ment, reasonable suspicion, random, and post-accident testing of
operators of commercial motor vehicles for the use of a controlled
substance in violation of law or a United States Government regu-
lation and to conduct reasonable suspicion, random, and post-acci-
dent testing of such operators for the use of alcohol in violation of
law or a United States Government regulation.
(B) The regulations prescribed under subparagraph (A) shall per-
mit motor carriers—
(i) to conduct preemployment testing of commercial motor ve-
hicle operators for the use of alcohol; and
(ii) to use hair testing as an acceptable alternative to urine
testing—
(I) in conducting preemployment testing for the use of a
ctelli on DSK11ZRN23PROD with REPORTS
controlled substance; and
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00100 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
101
(II) in conducting random testing for the use of a con-
trolled substance if the operator was subject to hair testing
for preemployment testing.
(C) When the Secretary of Transportation considers it appro-
priate in the interest of safety, the Secretary may prescribe regula-
tions for conducting periodic recurring testing of operators of com-
mercial motor vehicles for the use of alcohol or a controlled sub-
stance in violation of law or a Government regulation.
(2) In prescribing regulations under this subsection, the Sec-
retary of Transportation—
(A) shall require that post-accident testing of an operator of
a commercial motor vehicle be conducted when loss of human
life occurs in an accident involving a commercial motor vehicle;
(B) may require that post-accident testing of such an oper-
ator be conducted when bodily injury or significant property
damage occurs in any other serious accident involving a com-
mercial motor vehicle; and
(C) shall provide an exemption from hair testing for commer-
cial motor vehicle operators with established religious beliefs
that prohibit the cutting or removal of hair.
(c) TESTING AND LABORATORY REQUIREMENTS.—In carrying out
subsection (b) of this section, the Secretary of Transportation shall
develop requirements that shall—
(1) promote, to the maximum extent practicable, individual
privacy in the collection of specimens;
(2) for laboratories and testing procedures for controlled sub-
stances, incorporate the Department of Health and Human
Services scientific and technical guidelines dated April 11,
1988, and any amendments to those guidelines, for urine test-
ing, and technical guidelines for hair testing, including manda-
tory guidelines establishing—
(A) comprehensive standards for every aspect of labora-
tory controlled substances testing and laboratory proce-
dures to be applied in carrying out this section, including
standards requiring the use of the best available tech-
nology to ensure the complete reliability and accuracy of
controlled substances tests and strict procedures governing
the chain of custody of specimens collected for controlled
substances testing;
(B) the minimum list of controlled substances for which
individuals may be tested;
(C) appropriate standards and procedures for periodic re-
view of laboratories and criteria for certification and rev-
ocation of certification of laboratories to perform controlled
substances testing in carrying out this section; and
(D) laboratory protocols and cut-off levels for hair testing
to detect the use of a controlled substance;
(3) require that a laboratory involved in testing under this
section have the capability and facility, at the laboratory, of
performing screening and confirmation tests;
(4) provide that any test indicating the use of alcohol or a
controlled substance in violation of law or a Government regu-
lation be confirmed by a scientifically recognized method of
testing capable of providing quantitative information about al-
ctelli on DSK11ZRN23PROD with REPORTS
cohol or a controlled substance;
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00101 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
102
(5) provide that each specimen be subdivided, secured, and
labeled in the presence of the tested individual and that a part
of the specimen be retained in a secure manner to prevent the
possibility of tampering, so that if the individual’s confirmation
test results are positive the individual has an opportunity to
have the retained part tested by a 2d confirmation test done
independently at another certified laboratory if the individual
requests the 2d confirmation test not later than 3 days after
being advised of the results of the first confirmation test;
(6) ensure appropriate safeguards for testing to detect and
quantify alcohol in breath and body fluid samples, including
urine and blood, through the development of regulations that
may be necessary and in consultation with the Secretary of
Health and Human Services;
(7) provide for the confidentiality of test results and medical
information (except information about alcohol or a controlled
substance) of employees, except that this clause does not pre-
vent the use of test results for the orderly imposition of appro-
priate sanctions under this section; and
(8) ensure that employees are selected for tests by non-
discriminatory and impartial methods, so that no employee is
harassed by being treated differently from other employees in
similar circumstances.
(d) TESTING AS PART OF MEDICAL EXAMINATION.—The Secretary
of Transportation may provide that testing under subsection (a) of
this section for operators subject to subpart E of part 391 of title
49, Code of Federal Regulations, be conducted as part of the med-
ical examination required under that subpart.
(e) REHABILITATION.—The Secretary of Transportation shall pre-
scribe regulations establishing requirements for rehabilitation pro-
grams that provide for the identification and opportunity for treat-
ment of operators of commercial motor vehicles who are found to
have used alcohol or a controlled substance in violation of law or
a Government regulation. The Secretary shall decide on the cir-
cumstances under which those operators shall be required to par-
ticipate in a program. This section does not prevent a motor carrier
from establishing a program under this section in cooperation with
another motor carrier.
(f) SANCTIONS.—The Secretary of Transportation shall decide on
appropriate sanctions for a commercial motor vehicle operator who
is found, based on tests conducted and confirmed under this sec-
tion, to have used alcohol or a controlled substance in violation of
law or a Government regulation but who is not under the influence
of alcohol or a controlled substance as provided in this chapter.
(g) EFFECT ON STATE AND LOCAL GOVERNMENT REGULATIONS.—
A State or local government may not prescribe or continue in effect
a law, regulation, standard, or order that is inconsistent with regu-
lations prescribed under this section. However, a regulation pre-
scribed under this section may not be construed to preempt a State
criminal law that imposes sanctions for reckless conduct leading to
loss of life, injury, or damage to property.
(h) INTERNATIONAL OBLIGATIONS AND FOREIGN LAWS.—In pre-
scribing regulations under this section, the Secretary of Transpor-
ctelli on DSK11ZRN23PROD with REPORTS
tation—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00102 Fmt 6659 Sfmt 6602 E:\HR\OC\HR276P1.XXX HR276P1
103
(1) shall establish only requirements that are consistent with
international obligations of the United States; and
(2) shall consider applicable laws and regulations of foreign
countries.
(i) OTHER REGULATIONS ALLOWED.—This section does not prevent
the Secretary of Transportation from continuing in effect, amend-
ing, or further supplementing a regulation prescribed before Octo-
ber 28, 1991, governing the use of alcohol or a controlled substance
by commercial motor vehicle employees.
(j) APPLICATION OF PENALTIES.—This section does not supersede
a penalty applicable to an operator of a commercial motor vehicle
under this chapter or another law.
* * * * * * *
§ 31310. Disqualifications
(a) BLOOD ALCOHOL CONCENTRATION LEVEL.—In this section, the
blood alcohol concentration level at or above which an individual
when operating a commercial motor vehicle is deemed to be driving
under the influence of alcohol is .04 percent.
(b) FIRST VIOLATION OR COMMITTING FELONY.—(1) Except as pro-
vided in paragraph (2) of this subsection and subsection (c) of this
section, the Secretary of Transportation shall disqualify from oper-
ating a commercial motor vehicle for at least one year an indi-
vidual—
(A) committing a first violation of driving a commercial
motor vehicle under the influence of alcohol or a controlled
substance;
(B) committing a first violation of leaving the scene of an ac-
cident involving a commercial motor vehicle operated by the in-
dividual;
(C) using a commercial motor vehicle in committing a felony
(except a felony described in subsection (d) of this section);
(D) committing a first violation of driving a commercial
motor vehicle when the individual’s commercial driver’s license
is revoked, suspended, or canceled based on the individual’s op-
eration of a commercial motor vehicle or when the individual
is disqualified from operating a commercial motor vehicle
based on the individual’s operation of a commercial motor vehi-
cle; or
(E) convicted of causing a fatality through negligent or crimi-
nal operation of a commercial motor vehicle.
(2) If the vehicle involved in a violation referred to in paragraph
(1) of this subsection is transporting hazardous material required
to be placarded under section 5103 of this title, the Secretary shall
disqualify the individual for at least 3 years.
(3) In this subsection and subsection (c), the term ‘‘controlled sub-
stance’’ has the meaning given such term in section 31306(a).
(c) SECOND AND MULTIPLE VIOLATIONS.—(1) Subject to paragraph
(2) of this subsection, the Secretary shall disqualify from operating
a commercial motor vehicle for life an individual—
(A) committing more than one violation of driving a commer-
cial motor vehicle under the influence of alcohol or a controlled
ctelli on DSK11ZRN23PROD with REPORTS
substance;
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00103 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276P1.XXX HR276P1
104
(B) committing more than one violation of leaving the scene
of an accident involving a commercial motor vehicle operated
by the individual;
(C) using a commercial motor vehicle in committing more
than one felony arising out of different criminal episodes;
(D) committing more than one violation of driving a commer-
cial motor vehicle when the individual’s commercial driver’s li-
cense is revoked, suspended, or canceled based on the individ-
ual’s operation of a commercial motor vehicle or when the indi-
vidual is disqualified from operating a commercial motor vehi-
cle based on the individual’s operation of a commercial motor
vehicle;
(E) convicted of more than one offense of causing a fatality
through negligent or criminal operation of a commercial motor
vehicle; or
(F) committing any combination of single violations or use
described in subparagraphs (A) through (E).
(2) The Secretary may prescribe regulations establishing guide-
lines (including conditions) under which a disqualification for life
under paragraph (1) of this subsection may be reduced to a period
of not less than 10 years.
(d) LIFETIME DISQUALIFICATION WITHOUT REINSTATEMENT.—
(1) CONTROLLED SUBSTANCE VIOLATIONS.—The Secretary
shall disqualify from operating a commercial motor vehicle for
life an individual who uses a commercial motor vehicle in com-
mitting a felony involving manufacturing, distributing, or dis-
pensing a controlled substance, or possession with intent to
manufacture, distribute, or dispense a controlled substance.
(2) HUMAN TRAFFICKING VIOLATIONS.—The Secretary shall
disqualify from operating a commercial motor vehicle for life
an individual who uses a commercial motor vehicle in commit-
ting a felony involving an act or practice described in para-
graph (9) of section 103 of the Trafficking Victims Protection
Act of 2000 (22 U.S.C. 7102(9)).
(e) SERIOUS TRAFFIC VIOLATIONS.—(1) The Secretary shall dis-
qualify from operating a commercial motor vehicle for at least 60
days an individual who, in a 3-year period, commits 2 serious traf-
fic violations involving a commercial motor vehicle operated by the
individual.
(2) The Secretary shall disqualify from operating a commercial
motor vehicle for at least 120 days an individual who, in a 3-year
period, commits 3 serious traffic violations involving a commercial
motor vehicle operated by the individual.
(f) EMERGENCY DISQUALIFICATION.—
(1) LIMITED DURATION.—The Secretary shall disqualify an in-
dividual from operating a commercial motor vehicle for not to
exceed 30 days if the Secretary determines that allowing the
individual to continue to operate a commercial motor vehicle
would create an imminent hazard (as such term is defined in
section 521 or section 5102).
(2) AFTER NOTICE AND HEARING.—The Secretary shall dis-
qualify an individual from operating a commercial motor vehi-
cle for more than 30 days if the Secretary determines, after no-
tice and an opportunity for a hearing, that allowing the indi-
ctelli on DSK11ZRN23PROD with REPORTS
vidual to continue to operate a commercial motor vehicle would
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00104 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276P1.XXX HR276P1
105
create an imminent hazard (as such term is defined in section
521 or section 5102).
(g) NONCOMMERCIAL MOTOR VEHICLE CONVICTIONS.—
(1) ISSUANCE OF REGULATIONS.—The Secretary shall issue
regulations providing for the disqualification by the Secretary
from operating a commercial motor vehicle of an individual
who holds a commercial driver’s license and who has been con-
victed of—
(A) a serious offense involving a motor vehicle (other
than a commercial motor vehicle) that has resulted in the
revocation, cancellation, or suspension of the individual’s
license; or
(B) a drug or alcohol related offense involving a motor
vehicle (other than a commercial motor vehicle).
(2) REQUIREMENTS FOR REGULATIONS.—Regulations issued
under paragraph (1) shall establish the minimum periods for
which the disqualifications shall be in effect, but in no case
shall the time periods for disqualification for noncommercial
motor vehicle violations be more stringent than those for of-
fenses or violations involving a commercial motor vehicle. The
Secretary shall determine such periods based on the serious-
ness of the offenses on which the convictions are based.
(h) STATE DISQUALIFICATION.—Notwithstanding subsections (b)
through (g) of this section, the Secretary does not have to disqualify
an individual from operating a commercial motor vehicle if the
State that issued the individual a license authorizing the operation
has disqualified the individual from operating a commercial motor
vehicle under subsections (b) through (g). Revocation, suspension,
or cancellation of the license is deemed to be disqualification under
this subsection.
(i) OUT-OF-SERVICE ORDERS.—(1)(A) To enforce section 392.5 of
title 49, Code of Federal Regulations, the Secretary shall prescribe
regulations establishing and enforcing an out-of-service period of 24
hours for an individual who violates section 392.5. An individual
may not violate an out-of-service order issued under those regula-
tions.
(B) The Secretary shall prescribe regulations establishing and
enforcing requirements for reporting out-of-service orders issued
under regulations prescribed under subparagraph (A) of this para-
graph. Regulations prescribed under this subparagraph shall re-
quire at least that an operator of a commercial motor vehicle who
is issued an out-of-service order to report the issuance to the indi-
vidual’s employer and to the State that issued the operator a driv-
er’s license.
(2) The Secretary shall prescribe regulations establishing sanc-
tions and penalties related to violations of out-of-service orders by
individuals operating commercial motor vehicles. The regulations
shall require at least that—
(A) an operator of a commercial motor vehicle found to have
committed a first violation of an out-of-service order shall be
disqualified from operating such a vehicle for at least 180 days
and liable for a civil penalty of at least $2,500;
(B) an operator of a commercial motor vehicle found to have
committed a 2d violation of an out-of-service order shall be dis-
ctelli on DSK11ZRN23PROD with REPORTS
qualified from operating such a vehicle for at least 2 years and
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00105 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276P1.XXX HR276P1
106
not more than 5 years and liable for a civil penalty of at least
$5,000;
(C) an employer that knowingly allows or requires an em-
ployee to operate a commercial motor vehicle in violation of an
out-of-service order shall be liable for a civil penalty of not
more than $25,000; and
(D) an employer that knowingly and willfully allows or re-
quires an employee to operate a commercial motor vehicle in
violation of an out-of-service order shall, upon conviction, be
subject for each offense to imprisonment for a term not to ex-
ceed one year or a fine under title 18, or both.
(j) GRADE-CROSSING VIOLATIONS.—
(1) SANCTIONS.—The Secretary shall issue regulations estab-
lishing sanctions and penalties relating to violations, by per-
sons operating commercial motor vehicles, of laws and regula-
tions pertaining to railroad-highway grade crossings.
(2) MINIMUM REQUIREMENTS.—The regulations issued under
paragraph (1) shall, at a minimum, require that—
(A) the penalty for a single violation is not less than a
60-day disqualification of the driver’s commercial driver’s
license; and
(B) any employer that knowingly allows, permits, au-
thorizes, or requires an employee to operate a commercial
motor vehicle in violation of such a law or regulation shall
be subject to a civil penalty of not more than $10,000.
(k) FOREIGN COMMERCIAL DRIVERS.—A foreign commercial driver
shall be subject to disqualification under this section.
* * * * * * *
SUBTITLE VII—AVIATION PROGRAMS
* * * * * * *
PART A—AIR COMMERCE AND SAFETY
* * * * * * *
SUBPART iii—SAFETY
* * * * * * *
CHAPTER 451—ALCOHOL AND CONTROLLED
SUBSTANCES TESTING
* * * * * * *
§ 45101. Definition
In this chapter, ‘‘controlled substance’’ ømeans any substance¿
means—
(A) any substance under section 102 of the Comprehen-
sive Drug Abuse Prevention and Control Act of 1970 (21
U.S.C. 802) specified by the Administrator of the Federal
ctelli on DSK11ZRN23PROD with REPORTS
Aviation Administrationø.¿ ; and
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00106 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276P1.XXX HR276P1
107
(B) any substance not covered under subparagraph (A)
that was a substance under such section as of December 1,
2018, and specified by the Secretary of Transportation.
* * * * * * *
SUBTITLE III—GENERAL AND INTERMODAL
PROGRAMS
* * * * * * *
CHAPTER 53—PUBLIC TRANSPORTATION
* * * * * * *
§ 5331. Alcohol and controlled substances testing
(a) DEFINITIONS.—In this section—
(1) ‘‘controlled substance’’ ømeans any substance¿ means—
(A) any substance under section 102 of the Comprehen-
sive Drug Abuse Prevention and Control Act of 1970 (21
U.S.C. 802) whose use the Secretary decides has a risk to
transportation safetyø.¿ ; and
(B) any substance not covered under subparagraph (A)
that was a substance under such section as of December 1,
2018, and whose use the Secretary of Transportation de-
cides has a risk to transportation safety.
(2) ‘‘person’’ includes any entity organized or existing under
the laws of the United States, a State, territory, or possession
of the United States, or a foreign country.
(3) ‘‘public transportation’’ means any form of public trans-
portation, except a form the Secretary decides is covered ade-
quately, for employee alcohol and controlled substances testing
purposes, under section 20140 or 31306 of this title or section
2303a, 7101(i), or 7302(e) of title 46. The Secretary may also
decide that a form of public transportation is covered ade-
quately, for employee alcohol and controlled substances testing
purposes, under the alcohol and controlled substance statutes
or regulations of an agency within the Department of Trans-
portation or the Coast Guard.
(b) TESTING PROGRAM FOR PUBLIC TRANSPORTATION EMPLOY-
EES.—(1)(A) In the interest of public transportation safety, the Sec-
retary shall prescribe regulations that establish a program requir-
ing public transportation operations that receive financial assist-
ance under section 5307, 5309, or 5311 of this title to conduct pre-
employment, reasonable suspicion, random, and post-accident test-
ing of public transportation employees responsible for safety-sen-
sitive functions (as decided by the Secretary) for the use of a con-
trolled substance in violation of law or a United States Government
regulation, and to conduct reasonable suspicion, random, and post-
accident testing of such employees for the use of alcohol in violation
of law or a United States Government regulation. The regulations
shall permit such operations to conduct preemployment testing of
such employees for the use of alcohol.
(B) When the Secretary considers it appropriate in the interest
of safety, the Secretary may prescribe regulations for conducting
ctelli on DSK11ZRN23PROD with REPORTS
periodic recurring testing of public transportation employees re-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00107 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276P1.XXX HR276P1
108
sponsible for safety-sensitive functions (as decided by the Sec-
retary) for the use of alcohol or a controlled substance in violation
of law or a Government regulation.
(2) In prescribing regulations under this subsection, the Sec-
retary—
(A) shall require that post-accident testing of such a public
transportation employee be conducted when loss of human life
occurs in an accident involving public transportation; and
(B) may require that post-accident testing of such a public
transportation employee be conducted when bodily injury or
significant property damage occurs in any other serious acci-
dent involving public transportation.
(c) DISQUALIFICATIONS FOR USE.—(1) When the Secretary con-
siders it appropriate, the Secretary shall require disqualification
for an established period of time or dismissal of any employee re-
ferred to in subsection (b)(1) of this section who is found—
(A) to have used or been impaired by alcohol when on duty;
or
(B) to have used a controlled substance, whether or not on
duty, except as allowed for medical purposes by law or regula-
tion.
(2) This section does not supersede any penalty applicable to a
public transportation employee under another law.
(d) TESTING AND LABORATORY REQUIREMENTS.—In carrying out
subsection (b) of this section, the Secretary shall develop require-
ments that shall—
(1) promote, to the maximum extent practicable, individual
privacy in the collection of specimens;
(2) for laboratories and testing procedures for controlled sub-
stances, incorporate the Department of Health and Human
Services scientific and technical guidelines dated April 11,
1988, and any amendments to those guidelines, including man-
datory guidelines establishing—
(A) comprehensive standards for every aspect of labora-
tory controlled substances testing and laboratory proce-
dures to be applied in carrying out this section, including
standards requiring the use of the best available tech-
nology to ensure the complete reliability and accuracy of
controlled substances tests and strict procedures governing
the chain of custody of specimens collected for controlled
substances testing;
(B) the minimum list of controlled substances for which
individuals may be tested; and
(C) appropriate standards and procedures for periodic re-
view of laboratories and criteria for certification and rev-
ocation of certification of laboratories to perform controlled
substances testing in carrying out this section;
(3) require that a laboratory involved in controlled sub-
stances testing under this section have the capability and facil-
ity, at the laboratory, of performing screening and confirmation
tests;
(4) provide that all tests indicating the use of alcohol or a
controlled substance in violation of law or a Government regu-
ctelli on DSK11ZRN23PROD with REPORTS
lation be confirmed by a scientifically recognized method of
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00108 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276P1.XXX HR276P1
109
testing capable of providing quantitative information about al-
cohol or a controlled substance;
(5) provide that each specimen be subdivided, secured, and
labeled in the presence of the tested individual and that a part
of the specimen be retained in a secure manner to prevent the
possibility of tampering, so that if the individual’s confirmation
test results are positive the individual has an opportunity to
have the retained part tested by a 2d confirmation test done
independently at another certified laboratory if the individual
requests the 2d confirmation test not later than 3 days after
being advised of the results of the first confirmation test;
(6) ensure appropriate safeguards for testing to detect and
quantify alcohol in breath and body fluid samples, including
urine and blood, through the development of regulations that
may be necessary and in consultation with the Secretary of
Health and Human Services;
(7) provide for the confidentiality of test results and medical
information (except information about alcohol or a controlled
substance) of employees, except that this clause does not pre-
vent the use of test results for the orderly imposition of appro-
priate sanctions under this section; and
(8) ensure that employees are selected for tests by non-
discriminatory and impartial methods, so that no employee is
harassed by being treated differently from other employees in
similar circumstances.
(e) REHABILITATION.—The Secretary shall prescribe regulations
establishing requirements for rehabilitation programs that provide
for the identification and opportunity for treatment of any public
transportation employee referred to in subsection (b)(1) of this sec-
tion who is found to have used alcohol or a controlled substance in
violation of law or a Government regulation. The Secretary shall
decide on the circumstances under which employees shall be re-
quired to participate in a program. This subsection does not pre-
vent a public transportation operation from establishing a program
under this section in cooperation with another public transpor-
tation operation.
(f) RELATIONSHIP TO OTHER LAWS, REGULATIONS, STANDARDS,
AND ORDERS.—(1) A State or local government may not prescribe,
issue, or continue in effect a law, regulation, standard, or order
that is inconsistent with regulations prescribed under this section.
However, a regulation prescribed under this section does not pre-
empt a State criminal law that imposes sanctions for reckless con-
duct leading to loss of life, injury, or damage to property.
(2) In prescribing regulations under this section, the Secretary—
(A) shall establish only requirements that are consistent
with international obligations of the United States; and
(B) shall consider applicable laws and regulations of foreign
countries.
(g) CONDITIONS ON FEDERAL ASSISTANCE.—
(1) INELIGIBILITY FOR ASSISTANCE.—A person that receives
funds under this chapter is not eligible for financial assistance
under section 5307, 5309, or 5311 of this title if the person is
required, under regulations the Secretary prescribes under this
ctelli on DSK11ZRN23PROD with REPORTS
section, to establish a program of alcohol and controlled sub-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00109 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276P1.XXX HR276P1
110
stances testing and does not establish the program in accord-
ance with this section.
(2) ADDITIONAL REMEDIES.—If the Secretary determines that
a person that receives funds under this chapter is not in com-
pliance with regulations prescribed under this section, the Sec-
retary may bar the person from receiving Federal transit as-
sistance in an amount the Secretary considers appropriate.
* * * * * * *
SECTION 503 OF THE SUPPLEMENTAL APPROPRIATIONS
ACT, 1987
SEC. 503. (a)(1) Except as provided in subsection (b) or (c), none of the
funds appropriated or made available by this Act, or any other
Act, with respect to any fiscal year, shall be available to ad-
minister or implement any drug testing pursuant to Executive
Order Numbered 12564 (dated September 15, 1986), or any sub-
sequent order, unless and until—
(A) the Secretary of Health and Human Services certifies in
writing to the Committees on Appropriations of the House of
Representatives and the Senate, and other appropriate com-
mittees of the Congress, that—
(i) each agency has developed a plan for achieving a
drug-free workplace in accordance with Executive Order
Numbered 12564 and applicable provisions of law (includ-
ing applicable provisions of this section);
(ii) the Department of Health and Human Services, in
addition to the scientific and technical guidelines dated
February 13, 1987, and any subsequent amendments
thereto, has, in accordance with paragraph (3), published
mandatory guidelines which—
(I) establish comprehensive standards for all aspects
of laboratory drug testing and laboratory procedures to
be applied in carrying out Executive Order Numbered
12564, including standards which require the use of
the best available technology for ensuring the full reli-
ability and accuracy of drug tests and strict proce-
dures governing the chain of custody of specimens col-
lected for drug testing;
(II) specify the drugs for which Federal employees
may be tested; and
(III) establish appropriate standards and procedures
for periodic review of laboratories and criteria for cer-
tification and revocation of certification of laboratories
to perform drug testing in carrying out Executive
Order Numbered 12564; and
(iii) all agency drug-testing programs and plans estab-
lished pursuant to Executive Order Numbered 12564 com-
ply with applicable provisions of law, including applicable
provisions of the Rehabilitation Act of 1973 (29 U.S.C. 701
et seq.), title 5 of the United States Code, and the manda-
tory guidelines under clause (ii);
(B) the Secretary of Health and Human Services has sub-
mitted to the Congress, in writing, a detailed, agency-by-agen-
ctelli on DSK11ZRN23PROD with REPORTS
cy analysis relating to—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00110 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276P1.XXX HR276P1
111
(i) the criteria and procedures to be applied in desig-
nating employees or positions for drug testing, including
the justification for such criteria and procedures;
(ii) the position titles designated for random drug test-
ing; and
(iii) the nature, frequency, and type of drug testing pro-
posed to be instituted; and
(C) the Director of the Office of Management and Budget has
submitted in writing to the Committees on Appropriations of
the House of Representatives and the Senate a detailed, agen-
cy-by-agency analysis (as of the time of certification under sub-
paragraph (A)) of the anticipated annual costs associated with
carrying out Executive Order Numbered 12564 and all other
requirements under this section during the 5-year period be-
ginning on the date of the enactment of this Act.
(2) Notwithstanding subsection (g), for purposes of this sub-
section, the term ‘‘agency’’ means—
(A) the Executive Office of the President;
(B) an Executive department under section 101 of title 5,
United States Code;
(C) the Environmental Protection Agency;
(D) the General Services Administration;
(E) the National Aeronautics and Space Administration;
(F) the Office of Personnel Management;
(G) the Small Business Administration;
(H) the United States Information Agency; and
(I) the Department of Veterans Affairs;
except that such term does not include the Department of Trans-
portation or any other entity (or component thereof) covered by
subsection (b).
(3) Notwithstanding any provision of chapter 5 of title 5, United
States Code, the mandatory guidelines to be published pursuant to
subsection (a)(1)(A)(ii) shall be published and made effective exclu-
sively according to the provisions of this paragraph. Notice of the
mandatory guidelines proposed by the Secretary of Health and
Human Services shall be published in the Federal Register, and in-
terested persons shall be given not less than 60 days to submit
written comments on the proposed mandatory guidelines. Following
review and consideration of written comments, final mandatory
guidelines shall be published in the Federal Register and shall be-
come effective upon publication.
(b)(1) Nothing in subsection (a) shall limit or otherwise affect the
availability of funds for drug testing by—
(A) the Department of Transportation;
(B) Department of Energy, for employees specifically in-
volved in the handling of nuclear weapons or nuclear mate-
rials;
(C) any agency with an agency-wide drug-testing program in
existence as of September 15, 1986; or
(D) any component of an agency if such component had a
drug-testing program in existence as of September 15, 1986.
(2) The Departments of Transportation and Energy and any
agency or component thereof with a drug-testing program in exist-
ctelli on DSK11ZRN23PROD with REPORTS
ence as of September 15, 1986—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00111 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276P1.XXX HR276P1
112
(A) shall be brought into full compliance with Executive
Order Numbered 12564 no later than the end of the 6-month
period beginning on the date of the enactment of this Act; and
(B) shall take such actions as may be necessary to ensure
that their respective drug-testing programs or plans are
brought into full compliance with the mandatory guidelines
published under subsection (a)(1)(A)(ii) no later than 90 days
after such mandatory guidelines take effect, except that any ju-
dicial challenge that affects such guidelines should not affect
drug-testing programs or plans subject to this paragraph.
(c) In the case of an agency (or component thereof) other than an
agency as defined by subsection (a)(2) or an agency (or component
thereof) covered by subsection (b), none of the funds appropriated
or made available by this Act, or any other Act, with respect to any
fiscal year, shall be available to administer or implement any drug
testing pursuant to Executive Order Numbered 12564, or any sub-
sequent order, unless and until—
(1) the Secretary of Health and Human Services provides written
certification with respect to that agency (or component) in accord-
ance with clauses (i) and (iii) of subsection (a)(1)(A);
(2) the Secretary of Health and Human Services has submitted
a written, detailed analysis with respect to that agency (or compo-
nent) in accordance with subsection (a)(1)(B); and
(3) the Director of the Office of Management and Budget has sub-
mitted a written, detailed analysis with respect to that agency (or
component) in accordance with subsection (a)(1)(C).
(d) Any Federal employee who is the subject of a drug test under
any program or plan shall, upon written request, have access to—
(1) any records relating to such employee’s drug test; and
(2) any records relating to the results of any relevant certifi-
cation, review, or revocation-of-certification proceedings, as referred
to in subsection (a)(1)(A)(ii)(III).
(e) The results of a drug test of a Federal employee may not be
disclosed without the prior written consent of such employee, un-
less the disclosure would be—
(1) to the employee’s medical review official (as defined in the sci-
entific and technical guidelines referred to in subsection
(a)(1)(A)(ii));
(2) to the administrator of any Employee Assistance Program in
which the employee is receiving counseling or treatment or is oth-
erwise participating;
(3) to any supervisory or management official within the employ-
ee’s agency having authority to take the adverse personnel action
against such employee; or
(4) pursuant to the order of a court of competent jurisdiction
where required by the United States Government to defend against
any challenge against any adverse personnel action.
(f) Each agency covered by Executive Order Numbered 12564
shall submit to the Committees on Appropriations of the House of
Representatives and the Senate, and other appropriate committees
of the Congress, an annual report relating to drug-testing activities
conducted by such agency pursuant to such executive order. Each
such annual report shall be submitted at the time of the Presi-
dent’s budget submission to the Congress under section 1105(a) of
ctelli on DSK11ZRN23PROD with REPORTS
title 31, United States Code
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00112 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276P1.XXX HR276P1
113
(g) For purposes of this section, the terms ‘‘agency’’ and ‘‘Em-
ployee Assistance Program’’ each has the meaning given such term
under section 7(b) of Executive Order Numbered 12564, as in effect
on September 15, 1986.
(h) MARIJUANA.—
(1) CONTINUED TESTING.—Notwithstanding the Marijuana
Opportunity Reinvestment and Expungement Act and the
amendments made thereby, the Secretary of Health and Human
Services may continue to include marijuana for purposes of
drug testing of Federal employees subject to this section, Execu-
tive Order 12564, or other applicable Federal laws and orders.
(2) DEFINITION.—The term ‘‘marijuana’’ has the meaning
given to the term ‘‘marihuana’’ in section 102 of the Controlled
Substances Act (21 6 U.S.C. 802) on the day before the date of
enactment of the Marijuana Opportunity Reinvestment and
Expungement Act.
INTERNAL REVENUE CODE OF 1986
* * * * * * *
Subtitle E—Alcohol, Tobacco, and Certain
Other Excise Taxes
Chapter 51. Distilled Spirits, Wines, and Beer
* * * * * * *
Chapter 56. Cannabis Products
* * * * * * *
CHAPTER 56—CANNABIS PRODUCTS
SUBCHAPTER A. TAX ON CANNABIS PRODUCTS.
SUBCHAPTER B. OCCUPATIONAL TAX.
SUBCHAPTER C. BOND AND PERMITS.
SUBCHAPTER D. OPERATIONS.
SUBCHAPTER E. PENALTIES.
Subchapter A—Tax on Cannabis Products
Sec. 5901. Imposition of tax.
Sec. 5902. Definitions.
Sec. 5903. Liability and method of payment.
Sec. 5904. Exemption from tax; transfers in bond.
Sec. 5905. Credit, refund, or drawback of tax.
SEC. 5901. IMPOSITION OF TAX.
(a) IMPOSITION OF TAX.—There is hereby imposed on any can-
nabis product produced in or imported into the United States a tax
equal to—
(1) for any such product removed during the first 5 calendar
ctelli on DSK11ZRN23PROD with REPORTS
years ending after the date on which this chapter becomes effec-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00113 Fmt 6659 Sfmt 6603 E:\HR\OC\HR276P1.XXX HR276P1
114
tive, the applicable percentage of such product’s removal price,
and
(2) for any product removed during any calendar year after
the calendar years described in paragraph (1), the applicable
equivalent amount.
(b) APPLICABLE PERCENTAGE.—For purposes of subsection (a)(1),
the applicable percentage shall be determined as follows:
(1) For any cannabis product removed during the first 2 cal-
endar years ending after the date on which this chapter be-
comes effective, 5 percent.
(2) For any cannabis product removed during the calendar
year after the last calendar year to which paragraph (1) ap-
plies, 6 percent.
(3) For any cannabis product removed during the calendar
year after the calendar year to which paragraph (2) applies, 7
percent.
(4) For any cannabis product removed during the calendar
year after the calendar year to which paragraph (3) applies, 8
percent.
(c) APPLICABLE EQUIVALENT AMOUNT.—
(1) IN GENERAL.—For purposes of subsection (a)(2), the term
‘‘applicable equivalent amount’’ means, with respect to any can-
nabis product removed during any calendar year, an amount
equal to—
(A) in the case of any cannabis product not described in
subparagraph (B), the product of the applicable rate per
ounce multiplied by the number of ounces of such product
(and a proportionate tax at the like rate on all fractional
parts of an ounce of such product), and
(B) in the case of any THC-measurable cannabis product,
the product of the applicable rate per gram multiplied by
the number of grams of tetrahydrocannabinol in such prod-
uct (and a proportionate tax at the like rate on all frac-
tional parts of a gram of tetrahydrocannabinol in such
product).
(2) APPLICABLE RATES.—
(A) IN GENERAL.—For purposes of paragraph (1)(A), the
term ‘‘applicable rate per ounce’’ means, with respect to any
cannabis product removed during any calendar year, 8 per-
cent of the prevailing sales price of cannabis flowers sold
in the United States during the 12-month period ending
one calendar quarter before such calendar year, expressed
on a per ounce basis, as determined by the Secretary.
(B) THC-MEASURABLE CANNABIS PRODUCTS.—For pur-
poses of paragraph (1)(B), the term ‘‘applicable rate per
gram’’ means, with respect to any cannabis product re-
moved during any calendar year, 8 percent of the pre-
vailing sales price of tetrahydrocannabinol sold in the
United States during the 12-month period ending one cal-
endar quarter before such calendar year, expressed on a per
gram basis, as determined by the Secretary.
(d) TIME OF ATTACHMENT ON CANNABIS PRODUCTS.—The tax
under this section shall attach to any cannabis product as soon as
ctelli on DSK11ZRN23PROD with REPORTS
such product is in existence as such, whether it be subsequently sep-
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00114 Fmt 6659 Sfmt 6603 E:\HR\OC\HR276P1.XXX HR276P1
115
arated or transferred into any other substance, either in the process
of original production or by any subsequent process.
SEC. 5902. DEFINITIONS.
(a) DEFINITIONS RELATED TO CANNABIS PRODUCTS.—For purposes
of this chapter—
(1) CANNABIS PRODUCT.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), the term ‘‘cannabis product’’ means any article which
contains (or consists of) cannabis.
(B) EXCEPTIONS.—The term ‘‘cannabis product’’ shall not
include an FDA-approved article or industrial hemp.
(C) FDA-APPROVED ARTICLE.—The term ‘‘FDA-approved
article’’ means any article if the producer or importer there-
of demonstrates to the satisfaction of the Secretary of
Health and Human Services that such article is—
(i) a drug—
(I) that is approved under section 505 of the Fed-
eral Food, Drug, and Cosmetic Act or licensed
under section 351 of the Public Health Service Act,
or
(II) for which an investigational use exemption
has been authorized under section 505(i) of the
Federal Food, Drug, and Cosmetic Act or under
section 351(a) of the Public Health Service Act, or
(ii) a combination product (as described in section
503(g) of the Federal Food, Drug, and Cosmetic Act),
the constituent parts of which were approved or cleared
under section 505, 510(k), or 515 of such Act.
(D) INDUSTRIAL HEMP.—The term ‘‘industrial hemp’’
means the plant Cannabis sativa L. and any part of such
plant, whether growing or not, with a delta-9
tetrahydrocannabinol concentration of not more than 0.3
percent on a dry weight basis.
(2) THC-MEASURABLE CANNABIS PRODUCT.—The term ‘‘THC-
measurable cannabis product’’ means any cannabis product—
(A) with respect to which the Secretary has made a deter-
mination that the amount of tetrahydrocannabinol in such
product can be measured with a high degree of accuracy,
or
(B) which is not cannabis flower and the concentration of
tetrahydrocannabinol in which is significantly higher than
the average such concentration in cannabis flower.
(3) CANNABIS.—The term ‘‘cannabis’’ has the meaning given
such term under section 102(16) of the Controlled Substances
Act (21 U.S.C. 802(16)).
(b) DEFINITIONS RELATED TO CANNABIS ENTERPRISES.—For pur-
poses of this chapter—
(1) CANNABIS ENTERPRISE.—The term ‘‘cannabis enterprise’’
means a producer, importer, or export warehouse proprietor.
(2) PRODUCER.—
(A) IN GENERAL.—The term ‘‘producer’’ means any person
who plants, cultivates, harvests, grows, manufactures, pro-
duces, compounds, converts, processes, prepares, or pack-
ctelli on DSK11ZRN23PROD with REPORTS
ages any cannabis product.
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00115 Fmt 6659 Sfmt 6603 E:\HR\OC\HR276P1.XXX HR276P1
116
(B) PERSONAL USE EXCEPTION.—Subject to regulation
prescribed by the Secretary, the term ‘‘producer’’ shall not
include any individual otherwise described in subpara-
graph (A) if the only cannabis product described in such
subparagraph with respect to such individual is for per-
sonal or family use and not for sale.
(3) IMPORTER.—The term ‘‘importer’’ means any person who—
(A) is in the United States and to whom non-tax-paid
cannabis products, produced in a foreign country or a pos-
session of the United States, are shipped or consigned,
(B) removes cannabis products for sale or consumption in
the United States from a customs bonded warehouse, or
(C) smuggles or otherwise unlawfully brings any can-
nabis product into the United States.
(4) EXPORT WAREHOUSE PROPRIETOR.—
(A) IN GENERAL.—The term ‘‘export warehouse proprietor’’
means any person who operates an export warehouse.
(B) EXPORT WAREHOUSE.—The term ‘‘export warehouse’’
means a bonded internal revenue warehouse for the storage
of cannabis products, upon which the internal revenue tax
has not been paid—
(i) for subsequent shipment to a foreign country or a
possession of the United States, or
(ii) for consumption beyond the jurisdiction of the in-
ternal revenue laws of the United States.
(5) CANNABIS PRODUCTION FACILITY.—The term ‘‘cannabis
production facility’’ means an establishment which is qualified
under subchapter C to perform any operation for which such
qualification is required under such subchapter.
(c) OTHER DEFINITIONS.—For purposes of this chapter—
(1) PRODUCE.—The term ‘‘produce’’ includes any activity de-
scribed in subsection (b)(2)(A).
(2) REMOVAL; REMOVE.—The terms ‘‘removal’’ or ‘‘remove’’
means—
(A) the transfer of cannabis products from the premises
of a producer (or the transfer of such products from the
bonded premises of a producer to a non-bonded premises of
such producer),
(B) release of such products from customs custody, or
(C) smuggling or other unlawful importation of such
products into the United States.
(3) REMOVAL PRICE.—The term ‘‘removal price’’ means—
(A) except as otherwise provided in this paragraph, the
price for which the cannabis product is sold in the sale
which occurs in connection with the removal of such prod-
uct,
(B) in the case of any such sale which is described in sec-
tion 5903(c), the price determined under such section, and
(C) if there is no sale which occurs in connection with
such removal, the price which would be determined under
section 5903(c) if such product were sold at a price which
cannot be determined.
ctelli on DSK11ZRN23PROD with REPORTS
SEC. 5903. LIABILITY AND METHOD OF PAYMENT.
(a) LIABILITY FOR TAX.—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00116 Fmt 6659 Sfmt 6603 E:\HR\OC\HR276P1.XXX HR276P1
117
(1) ORIGINAL LIABILITY.—The producer or importer of any
cannabis product shall be liable for the taxes imposed thereon
by section 5901.
(2) TRANSFER OF LIABILITY.—
(A) IN GENERAL.—When cannabis products are trans-
ferred, without payment of tax, pursuant to subsection (b)
or (c) of section 5904—
(i) except as provided in clause (ii), the transferee
shall become liable for the tax upon receipt by the
transferee of such articles, and the transferor shall
thereupon be relieved of their liability for such tax, and
(ii) in the case of cannabis products which are re-
leased in bond from customs custody for transfer to the
bonded premises of a producer, the transferee shall be-
come liable for the tax on such articles upon release
from customs custody, and the importer shall there-
upon be relieved of their liability for such tax.
(B) RETURNED TO BOND.—All provisions of this chapter
applicable to cannabis products in bond shall be applicable
to such articles returned to bond upon withdrawal from the
market or returned to bond after previous removal for a
tax-exempt purpose.
(b) METHOD OF PAYMENT OF TAX.—
(1) IN GENERAL.—
(A) TAXES PAID ON BASIS OF RETURN.—The taxes imposed
by section 5901 shall be paid on the basis of return. The
Secretary shall, by regulations, prescribe the period or the
event to be covered by such return and the information to
be furnished on such return.
(B) APPLICATION TO TRANSFEREES.—In the case of any
transfer to which subsection (a)(2)(A) applies, the tax under
section 5901 on the transferee shall (if not otherwise re-
lieved by reason of a subsequent transfer to which such
subsection applies) be imposed with respect to the removal
of the cannabis product from the bonded premises of the
transferee.
(C) POSTPONEMENT.—Any postponement under this sub-
section of the payment of taxes determined at the time of re-
moval shall be conditioned upon the filing of such addi-
tional bonds, and upon compliance with such requirements,
as the Secretary may prescribe for the protection of the rev-
enue. The Secretary may, by regulations, require payment
of tax on the basis of a return prior to removal of the can-
nabis products where a person defaults in the postponed
payment of tax on the basis of a return under this sub-
section or regulations prescribed thereunder.
(D) ADMINISTRATION AND PENALTIES.—All administrative
and penalty provisions of this title, insofar as applicable,
shall apply to any tax imposed by section 5901.
(2) TIME FOR PAYMENT OF TAXES.—
(A) IN GENERAL.—Except as otherwise provided in this
paragraph, in the case of taxes on cannabis products re-
moved during any semimonthly period under bond for de-
ctelli on DSK11ZRN23PROD with REPORTS
ferred payment of tax, the last day for payment of such
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00117 Fmt 6659 Sfmt 6603 E:\HR\OC\HR276P1.XXX HR276P1
118
taxes shall be the 14th day after the last day of such semi-
monthly period.
(B) IMPORTED ARTICLES.—In the case of cannabis prod-
ucts which are imported into the United States, the fol-
lowing provisions shall apply:
(i) IN GENERAL.—The last day for payment of tax
shall be the 14th day after the last day of the semi-
monthly period during which the article is entered into
the customs territory of the United States.
(ii) SPECIAL RULE FOR ENTRY OF WAREHOUSING.—Ex-
cept as provided in clause (iv), in the case of an entry
for warehousing, the last day for payment of tax shall
not be later than the 14th day after the last day of the
semimonthly period during which the article is re-
moved from the first such warehouse.
(iii) FOREIGN TRADE ZONES.—Except as provided in
clause (iv) and in regulations prescribed by the Sec-
retary, articles brought into a foreign trade zone shall,
notwithstanding any other provision of law, be treated
for purposes of this subsection as if such zone were a
single customs warehouse.
(iv) EXCEPTION FOR ARTICLES DESTINED FOR EX-
PORT.—Clauses (ii) and (iii) shall not apply to any arti-
cle which is shown to the satisfaction of the Secretary
to be destined for export.
(C) CANNABIS PRODUCTS BROUGHT INTO THE UNITED
STATES FROM PUERTO RICO.—In the case of cannabis prod-
ucts which are brought into the United States from Puerto
Rico and subject to tax under section 7652, the last day for
payment of tax shall be the 14th day after the last day of
the semimonthly period during which the article is brought
into the United States.
(D) SPECIAL RULE WHERE DUE DATE FALLS ON SATURDAY,
SUNDAY, OR HOLIDAY.—Notwithstanding section 7503, if,
but for this subparagraph, the due date under this para-
graph would fall on a Saturday, Sunday, or a legal holiday
(as defined in section 7503), such due date shall be the im-
mediately preceding day which is not a Saturday, Sunday,
or such a holiday.
(E) SPECIAL RULE FOR UNLAWFULLY PRODUCED CANNABIS
PRODUCTS.—In the case of any cannabis products produced
in the United States at any place other than the premises
of a producer that has filed the bond and obtained the per-
mit required under this chapter, tax shall be due and pay-
able immediately upon production.
(3) PAYMENT BY ELECTRONIC FUND TRANSFER.—Any person
who in any 12-month period, ending December 31, was liable
for a gross amount equal to or exceeding $5,000,000 in taxes
imposed on cannabis products by section 5901 (or section 7652)
shall pay such taxes during the succeeding calendar year by
electronic fund transfer (as defined in section 5061(e)(2)) to a
Federal Reserve Bank. Rules similar to the rules of section
5061(e)(3) shall apply to the $5,000,000 amount specified in the
preceding sentence.
ctelli on DSK11ZRN23PROD with REPORTS
(c) DETERMINATION OF PRICE.—
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00118 Fmt 6659 Sfmt 6603 E:\HR\OC\HR276P1.XXX HR276P1
119
(1) CONSTRUCTIVE SALE PRICE.—
(A) IN GENERAL.—If an article is sold directly to con-
sumers, sold on consignment, or sold (otherwise than
through an arm’s length transaction) at less than the fair
market price, or if the price for which the article sold can-
not be determined, the tax under section 5901(a) shall be
computed on the price for which such articles are sold, in
the ordinary course of trade, by producers thereof, as deter-
mined by the Secretary.
(B) ARM’S LENGTH.—
(i) IN GENERAL.—For purposes of this section, a sale
is considered to be made under circumstances other-
wise than at arm’s length if—
(I) the parties are members of the same con-
trolled group, whether or not such control is actu-
ally exercised to influence the sale price,
(II) the parties are members of a family, as de-
fined in section 267(c)(4), or
(III) the sale is made pursuant to special ar-
rangements between a producer and a purchaser.
(ii) CONTROLLED GROUPS.—
(I) IN GENERAL.—The term ‘‘controlled group’’
has the meaning given to such term by subsection
(a) of section 1563, except that ‘‘more than 50 per-
cent’’ shall be substituted for ‘‘at least 80 percent’’
each place it appears in such subsection.
(II) CONTROLLED GROUPS WHICH INCLUDE NON-
INCORPORATED PERSONS.—Under regulations pre-
scribed by the Secretary, principles similar to the
principles of subclause (I) shall apply to a group of
persons under common control where one or more
of such persons is not a corporation.
(2) CONTAINERS, PACKING AND TRANSPORTATION CHARGES.—
In determining, for the purposes of this chapter, the price for
which an article is sold, there shall be included any charge for
coverings and containers of whatever nature, and any charge
incident to placing the article in condition packed ready for
shipment, but there shall be excluded the amount of tax im-
posed by this chapter, whether or not stated as a separate
charge. A transportation, delivery, insurance, installation, or
other charge (not required by the preceding sentence to be in-
cluded) shall be excluded from the price only if the amount
thereof is established to the satisfaction of the Secretary in ac-
cordance with regulations.
(3) DETERMINATION OF APPLICABLE EQUIVALENT AMOUNTS.—
Paragraphs (1) and (2) shall apply for purposes of section
5901(c) only to the extent that the Secretary determines appro-
priate.
(d) PARTIAL PAYMENTS AND INSTALLMENT ACCOUNTS.—
(1) PARTIAL PAYMENTS.—In the case of—
(A) a contract for the sale of an article wherein it is pro-
vided that the price shall be paid by installments and title
to the article sold does not pass until a future date notwith-
standing partial payment by installments,
ctelli on DSK11ZRN23PROD with REPORTS
(B) a conditional sale, or
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00119 Fmt 6659 Sfmt 6603 E:\HR\OC\HR276P1.XXX HR276P1
120
(C) a chattel mortgage arrangement wherein it is pro-
vided that the sales price shall be paid in installments,
there shall be paid upon each payment with respect to the arti-
cle a percentage of such payment equal to the rate of tax in ef-
fect on the date such payment is due.
(2) SALES OF INSTALLMENT ACCOUNTS.—If installment ac-
counts, with respect to payments on which tax is being com-
puted as provided in paragraph (1), are sold or otherwise dis-
posed of, then paragraph (1) shall not apply with respect to any
subsequent payments on such accounts (other than subsequent
payments on returned accounts with respect to which credit or
refund is allowable by reason of section 6416(b)(5)), but in-
stead—
(A) there shall be paid an amount equal to the difference
between—
(i) the tax previously paid on the payments on such
installment accounts, and
(ii) the total tax which would be payable if such in-
stallment accounts had not been sold or otherwise dis-
posed of (computed as provided in paragraph (1)), ex-
cept that
(B) if any such sale is pursuant to the order of, or subject
to the approval of, a court of competent jurisdiction in a
bankruptcy or insolvency proceeding, the amount computed
under subparagraph (A) shall not exceed the sum of the
amounts computed by multiplying—
(i) the proportionate share of the amount for which
such accounts are sold which is allocable to each un-
paid installment payment, by
(ii) the rate of tax under this chapter in effect on the
date such unpaid installment payment is or was due.
The sum of the amounts payable under this subsection in
respect of the sale of any article shall not exceed the total
tax.
SEC. 5904. EXEMPTION FROM TAX; TRANSFERS IN BOND.
(a) EXEMPTION FROM TAX.—Cannabis products on which the in-
ternal revenue tax has not been paid or determined may, subject to
such regulations as the Secretary shall prescribe, be withdrawn
from the bonded premises of any producer in approved containers
free of tax and not for resale for use—
(1) exclusively in scientific research by a laboratory,
(2) by a proprietor of a cannabis production facility in re-
search, development, or testing (other than consumer testing or
other market analysis) of processes, systems, materials, or
equipment, relating to cannabis or cannabis operations, under
such limitations and conditions as to quantities, use, and ac-
countability as the Secretary may by regulations require for the
protection of the revenue, or
(3) by the United States or any governmental agency thereof,
any State, any political subdivision of a State, or the District
of Columbia, for nonconsumption purposes.
(b) CANNABIS PRODUCTS TRANSFERRED OR REMOVED IN BOND
FROM DOMESTIC FACTORIES AND EXPORT WAREHOUSES.—
(1) IN GENERAL.—Subject to such regulations and under such
ctelli on DSK11ZRN23PROD with REPORTS
bonds as the Secretary shall prescribe, a producer or export
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00120 Fmt 6659 Sfmt 6603 E:\HR\OC\HR276P1.XXX HR276P1
121
warehouse proprietor may transfer cannabis products, without
payment of tax, to the bonded premises of another producer or
export warehouse proprietor, or remove such articles, without
payment of tax, for shipment to a foreign country or a posses-
sion of the United States, or for consumption beyond the juris-
diction of the internal revenue laws of the United States.
(2) LABELING.—Cannabis products may not be transferred or
removed under this subsection unless such products bear such
marks, labels, or notices as the Secretary shall by regulations
prescribe.
(c) CANNABIS PRODUCTS RELEASED IN BOND FROM CUSTOMS CUS-
TODY.—Cannabis products imported or brought into the United
States may be released from customs custody, without payment of
tax, for delivery to a producer or export warehouse proprietor if such
articles are not put up in packages, in accordance with such regula-
tions and under such bond as the Secretary shall prescribe.
(d) CANNABIS PRODUCTS EXPORTED AND RETURNED.—Cannabis
products classifiable under item 9801.00.10 of the Harmonized Tar-
iff Schedule of the United States (relating to duty on certain articles
previously exported and returned), as in effect on the date of the en-
actment of the Marijuana Opportunity Reinvestment and
Expungement Act, may be released from customs custody, without
payment of that part of the duty attributable to the internal revenue
tax for delivery to the original producer of such cannabis products
or to the export warehouse proprietor authorized by such producer
to receive such products, in accordance with such regulations and
under such bond as the Secretary shall prescribe. Upon such release
such products shall be subject to this chapter as if they had not been
exported or otherwise removed from internal revenue bond.
SEC. 5905. CREDIT, REFUND, OR DRAWBACK OF TAX.
(a) CREDIT OR REFUND.—
(1) IN GENERAL.—Credit or refund of any tax imposed by this
chapter or section 7652 shall be allowed or made (without inter-
est) to the cannabis enterprise on proof satisfactory to the Sec-
retary that the claimant cannabis enterprise has paid the tax
on—
(A) cannabis products withdrawn from the market by the
claimant, or
(B) such products lost (otherwise than by theft) or de-
stroyed, by fire, casualty, or act of God, while in the posses-
sion or ownership of the claimant.
(2) CANNABIS PRODUCTS LOST OR DESTROYED IN BOND.—
(A) EXTENT OF LOSS ALLOWANCE.—No tax shall be col-
lected in respect of cannabis products lost or destroyed
while in bond, except that such tax shall be collected—
(i) in the case of loss by theft, unless the Secretary
finds that the theft occurred without connivance, collu-
sion, fraud, or negligence on the part of the proprietor
of the cannabis production facility, owner, consignor,
consignee, bailee, or carrier, or their employees or
agents,
(ii) in the case of voluntary destruction, unless such
destruction is carried out as provided in paragraph (3),
ctelli on DSK11ZRN23PROD with REPORTS
and
VerDate Sep 11 2014 03:39 Mar 25, 2022 Jkt 029006 PO 00000 Frm 00121 Fmt 6659 Sfmt 6603 E:\HR\OC\HR276P1.XXX HR276P1
122
(iii) in the case of an unexplained shortage of can-
nabis products.
(B) PROOF OF LOSS.—In any case in which cannabis
products are lost or destroyed, whether by theft or other-
wise, the Secretary may require the proprietor of a cannabis
production facility or other person liable for the tax to file
a claim for relief from the tax and submit proof as to the
cause of such loss. In every case where it appears that the
loss was by theft, the burden shall be upon the proprietor
of the cannabis production facility or other person respon-
sible for the tax under section 5901 to establish to the satis-
faction of the Secretary that such loss did not occur as the
result of connivance, collusion, fraud, or negligence on the
part of the proprietor of the cannabis production facility,
owner, consignor, consignee, bailee, or carrier, or their em-
ployees or agents.
(C) REFUND OF TAX.—In any case where the tax would
not be collectible by virtue of subparagraph (A), but such
tax has been paid, the Secretary shall refund such tax.
(D) LIMITATIONS.—Except as provided in subparagraph
(E), no tax shall be abated, remitted, credited, or refunded
under this paragraph where the loss occurred after the tax
was determined. The abatement, remission, credit, or re-
fund of taxes provided for by subparagraphs (A) and (C) in
the case of loss of cannabis products by theft shall only be
allowed to the extent that the claimant is not indemnified
against or recompensed in respect of the tax for such loss.
(E) APPLICABILITY.—The provisions of this paragraph
shall extend to and apply in respect of cannabis products
lost after the tax was determined and before completion of
the physical removal of the cannabis products from the
bonded premises.
(3) VOLUNTARY DESTRUCTION.—The proprietor of a cannabis
production facility or other persons liable for the tax imposed
by this chapter or by section 7652 with respect to any cannabis
product in bond may voluntarily destroy such products, but
only if such destruction is under such supervision and under
such regulations as the Secretary may prescribe.
(4) LIMITATION.—Any claim for credit or refund of tax under
this subsection shall be filed within 6 months after the date of
the withdrawal from the market, loss, or destruction of the
products to which the claim relates, and shall be in such form
and contain such information as the Secretary shall by regula-
tions prescribe.
(b) DRAWBACK OF TAX.—There shall be an allowance of drawback
of tax paid on cannabis products, when shipped from the United
States, in accordance with such regulations and upon the filing of
such bond as the Secretary shall prescribe.
Subchapter B—Occupational Tax
Sec. 5911. Imposition and rate of tax.
Sec. 5912. Payment of tax.
ctelli on DSK11ZRN23PROD with REPORTS
Sec. 5913. Provisions relating to liability for occupational taxes.
Sec. 5914. Application to State laws.
Full text truncated for size; the complete document is in the PDF above.File and source
- File
- CRPT_crpt-117hrpt276_crpt-117hrpt276-pt1.pdf
- Size
- 4,492,071 bytes
- SHA-256
- ca29548767ad350945ea9409c93743d8551f98023f564bc6de210a63dde74d3f
- Original
- www.govinfo.gov