Cannabis Administration and Opportunity Act
This bill decriminalizes cannabis and removes it from scheduling under the Controlled Substances Act. It also provides for (1) a federal regulatory framework with respect to the commercial sale of cannabis and other areas, and (2) the expungement of certain federal cannabis offenses.
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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Cannabis 
Administration and Opportunity Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
  TITLE I--DECRIMINALIZATION OF CANNABIS, PUBLIC SAFETY, AND STATES' 
                                 RIGHTS

               Subtitle A--Decriminalization of Cannabis

Sec. 101. Decriminalization of cannabis.
Sec. 102. Transferring agency functions with regard to cannabis.
              Subtitle B--Public Safety and States' Rights

Sec. 111. States' rights.
Sec. 112. Diversion of cannabis.
              TITLE II--RESEARCH, TRAINING, AND PREVENTION

           Subtitle A--Public Health and Biomedical Research

Sec. 201. Societal impact of cannabis legalization study.
Sec. 202. Biomedical research on cannabis.
Sec. 203. Public health surveillance and data collection.
Sec. 204. Awards to prevent underage cannabis use.
Sec. 205. National media campaigns on cannabis use.
Sec. 206. Increasing availability of cannabis products for research 
                            purposes.
Sec. 207. Trans-NIH cannabis consortium.
Sec. 208. Cannabis research interagency advisory committee.
Sec. 209. Awards for cannabis research.
Sec. 210. Department of Veterans Affairs clinical trials on the effects 
                            of cannabis on certain health outcomes of 
                            veterans with chronic pain and post-
                            traumatic stress disorder.
Sec. 211. Cannabis research infrastructure grants.
            Subtitle B--Cannabis-Impaired Driving Prevention

Sec. 221. Definitions.
Sec. 222. Cannabis-impaired driving research.
Sec. 223. DOT cannabis-impaired driving prevention programs.
Sec. 224. State cannabis-impaired driving prevention grant program.
Sec. 225. National cannabis impairment standard.
Sec. 226. Funding.
             TITLE III--RESTORATIVE JUSTICE AND OPPORTUNITY

              Subtitle A--Opportunity Trust Fund Programs

Sec. 301. Opportunity trust fund programs.
Sec. 302. Comprehensive opioid, stimulant, and substance use disorder 
                            program.
Sec. 303. Availability of small business administration programs and 
                            services to cannabis-related legitimate 
                            businesses and service providers.
Sec. 304. Demographic data of cannabis business owners and employees.
Sec. 305. Pilot program.
Sec. 306. Eliminating disparities among cannabis-related legitimate 
                            businesses and service providers.
                    Subtitle B--Restorative Justice

Sec. 311. Resentencing and expungement.
Sec. 312. No discrimination in the provision of a Federal public 
                            benefit on the basis of cannabis.
Sec. 313. No adverse effect for purposes of the immigration laws.
Sec. 314. Provision by health care providers of the Department of 
                            Veterans Affairs of recommendations and 
                            opinions regarding veteran participation in 
                            cannabis programs.
Sec. 315. Provision by health care providers of Indian health programs 
                            of recommendations and opinions regarding 
                            participation in cannabis programs.
           TITLE IV--TAXATION AND ESTABLISHMENT OF TRUST FUND

Sec. 401. Creation of Opportunity Trust Fund and imposition of taxes 
                            with respect to cannabis products.
  TITLE V--PUBLIC HEALTH, CANNABIS ADMINISTRATION, AND TRADE PRACTICES

                       Subtitle A--Public Health

Sec. 501. FDA regulation of cannabis.
Sec. 502. Amendments to the Federal Food, Drug, and Cosmetic Act.
Sec. 503. Expedited review.
Sec. 504. Regulation of cannabidiol.
Sec. 505. Transition periods.
Sec. 506. Amendment to the Poison Prevention Packaging Act.
Sec. 507. Funding for FDA.
              Subtitle B--Federal Cannabis Administration

Sec. 511. Federal cannabis administration.
Sec. 512. Increased funding for the Alcohol, Tobacco, and Cannabis Tax 
                            and Trade Bureau.
            TITLE VI--WORKPLACE HEALTH AND SAFETY PROVISIONS

Sec. 601. Definitions.
Sec. 602. Finding regarding employers in the cannabis industry.
Sec. 603. Cannabis as a targeted topic for Susan Harwood training grant 
                            program.
Sec. 604. Guidance on recommended practices.
Sec. 605. Workplace impact of cannabis legalization.
Sec. 606. Grants for community-based education, outreach, and 
                            enforcement with respect to the rights of 
                            workers in the cannabis industry.
         TITLE VII--BANKING, HOUSING, AND COMMUNITY DEVELOPMENT

Sec. 701. Purposes; sense of Congress.
Sec. 702. Requirements for filing suspicious activity reports.
Sec. 703. Guidance and examination procedures.
Sec. 704. Investment in communities.
Sec. 705. Fair hiring in banking.
Sec. 706. Fair access to financial services.
Sec. 707. Consumer protections for individuals with nonviolent criminal 
                            record.
                       TITLE VIII--MISCELLANEOUS

Sec. 801. Comptroller General review of laws and regulations.
Sec. 802. Cannabis Products Advisory Committee.
Sec. 803. Definition of hemp under USDA domestic hemp production 
                            program.
Sec. 804. Grants for hiring and training relating to cannabis 
                            enforcement.
Sec. 805. Severability.

SEC. 2. FINDINGS.

    The Congress finds as follows:
            (1) The communities that have been most harmed by cannabis 
        prohibition are benefitting the least from the legal marijuana 
        marketplace.
            (2) A legacy of racial and ethnic injustices, compounded by 
        the disproportionate collateral consequences of 80 years of 
        cannabis prohibition enforcement, now limits participation in 
        the industry.
            (3) 38 States, the District of Columbia, Puerto Rico, Guam, 
        the U.S. Virgin Islands, and Indian Tribes have adopted laws 
        allowing legal access to cannabis, and 19 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 49 States have reformed their laws 
        pertaining to cannabis despite the Schedule I status of 
        marijuana and its Federal criminalization.
            (5) Legal cannabis businesses support more than 428,000 
        jobs throughout the United States.
            (6) Legal cannabis sales totaled $25,000,000,000 in 2021 
        and are projected to reach $45,000,000,000 by 2025.
            (7) According to the American Civil Liberties Union (ACLU), 
        enforcing cannabis prohibition laws costs taxpayers 
        approximately $3,600,000,000 a year.
            (8) The continued enforcement of cannabis prohibition laws 
        resulted in over 350,000 arrests in 2020, 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.
            (9) People of color and Native Americans have been 
        historically targeted by discriminatory sentencing 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.
            (10) 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. Since 
        2003, the United States has deported more than 45,000 people 
        whose most serious conviction was cannabis possession.
            (11) Fewer than one-fifth of cannabis business owners 
        identify as minorities and only approximately 2 percent are 
        Black.
            (12) Applicants for cannabis licenses are limited by 
        numerous laws, regulations, and exorbitant permit applications, 
        licensing fees, and costs in these States, which can require 
        more than $700,000.
            (13) Historically disproportionate arrest and conviction 
        rates make it particularly difficult for people of color to 
        enter the legal cannabis marketplace, as most States bar these 
        individuals from participating.
            (14) Federal law severely limits access to loans and 
        capital for cannabis businesses, disproportionately impacting 
        minority and Tribal small business owners.
            (15) Some States, Indian Tribes, and municipalities have 
        taken proactive steps to mitigate inequalities in the legal 
        cannabis marketplace and ensure equal participation in the 
        industry.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Cannabis; cannabis product.--The terms ``cannabis'' and 
        ``cannabis product'' have the same meanings given such terms in 
        subsection (ss) of section 201 of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 321) (as added by section 502 of this 
        Act).
            (2) Cannabis offense.--The term ``cannabis offense'' means 
        a criminal offense related to cannabis--
                    (A) that, under Federal law, is no longer 
                punishable pursuant to this Act or the amendments made 
                under this Act; or
                    (B) 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 to or 
                following the adoption of a State law authorizing the 
                sale or use of cannabis.
            (3) Indian tribe.--The term ``Indian Tribe'' means the 
        governing body of any individually identified and federally 
        recognized Indian or Alaska Native tribe, band, nation, pueblo, 
        village, community, affiliated Tribal group, or component 
        reservation included on the list published most recently as of 
        the date of enactment of this Act pursuant to section 104(a) of 
        the Federally Recognized Indian Tribe List Act of 1994 (25 
        U.S.C. 5131(a)).

  TITLE I--DECRIMINALIZATION OF CANNABIS, PUBLIC SAFETY, AND STATES' 
                                 RIGHTS

               Subtitle A--Decriminalization of Cannabis

SEC. 101. DECRIMINALIZATION OF CANNABIS.

    (a) Cannabis Removed From Schedule of Controlled Substances.--
            (1) Removal in statute.--Schedule I of section 202 of the 
        Controlled Substances Act (21 U.S.C. 812) is amended--
                    (A) in subsection (c)--
                            (i) by striking ``(10) Marihuana.''; and
                            (ii) in paragraph (17), by inserting ``in 
                        cannabis (as defined in section 201(ss)(1) of 
                        the Federal Food, Drug, and Cosmetic Act (21 
                        U.S.C. 321(ss)(1))) or tetrahydrocannabinols'' 
                        before ``in hemp''; and
                    (B) in subsection (d)(2), by adding at the end the 
                following new subparagraph:
                    ``(C) Such term does not include any substance made 
                of or derived from cannabis (as defined in section 
                201(ss)(1) of the Federal Food, Drug, and Cosmetic Act 
                (21 U.S.C. 321(ss)(1)) or hemp (as defined in section 
                297A of the Agricultural Marketing Act of 1946 (7 
                U.S.C. 1639o))''.
            (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) of the 
        Controlled Substances Act (21 U.S.C. 811(a)(2)) removing 
        marihuana and tetrahydrocannabinols in cannabis (as defined in 
        section 201(ss)(1) of the Federal Food, Drug, and Cosmetic Act 
        (21 U.S.C. 321(ss)(1))) from the schedules of controlled 
        substances. For the purposes of the Controlled Substances Act, 
        marihuana and tetrahydrocannabinols in cannabis (as so defined) 
        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 offense committed, 
        case pending, and adjudication of juvenile delinquency entered 
        before, on, or after the date of enactment of this Act.
            (3) Rescheduling review of non-cannabis derived 
        tetrahydrocannibinols and cannabimimetic agents.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Attorney General 
                shall initiate a review of the schedules applicable to 
                the substances described in subsections (c)(17) and (d) 
                of Schedule I of section 202 of the Controlled 
                Substances Act (21 U.S.C. 812).
                    (B) Motion to transfer.--Pursuant to the findings 
                of the review conducted under subparagraph (A), the 
                Secretary of Health and Human Services shall, as 
                appropriate, initiate a motion to transfer such 
                substances between schedules pursuant to section 201 of 
                the Controlled Substances Act (21 U.S.C. 811).
    (b) Conforming Amendments to Controlled Substances Act.--The 
Controlled Substances Act (21 U.S.C. 801 et seq.) is amended--
            (1) in section 102 (21 U.S.C. 802)--
                    (A) by striking paragraph (16); and
                    (B) in paragraph (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 ``subparagraphs (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 ``subparagraphs (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, cocaine, hashish, hashish oil,'' 
                and inserting ``cocaine,''; and
                    (B) in paragraph (5), by striking ``, such as a 
                marihuana cigarette,'';
            (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)''; and
            (9) in section 1010(b) (21 U.S.C. 960(b))--
                    (A) in paragraph (1)--
                            (i) in subparagraph (F), by inserting 
                        ``or'' after the semicolon;
                            (ii) by striking subparagraph (G);
                            (iii) by redesignating subparagraph (H) as 
                        subparagraph (G); and
                            (iv) in subparagraph (G), as so 
                        redesignated, by striking the period at the end 
                        and inserting a semicolon;
                    (B) in paragraph (2)--
                            (i) in subparagraph (F), by inserting 
                        ``or'' after the semicolon;
                            (ii) by striking subparagraph (G);
                            (iii) by redesignating subparagraph (H) as 
                        subparagraph (G); and
                            (iv) in subparagraph (G), as so 
                        redesignated, by striking the period at the end 
                        and inserting a semicolon;
                    (C) by striking paragraph (4); and
                    (D) by redesignating paragraphs (5), (6), and (7) 
                as paragraphs (4), (5), and (6), respectively.
    (c) Other Conforming Amendments.--
            (1) National forest system drug control act of 1986.--The 
        National Forest 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--
            ``(1) any substance''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and
            ``(2) any substance not covered under paragraph (1) that 
        was a substance under such section as of December 1, 2018, and 
        specified by the Secretary 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 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 substance under such section as of 
                December 1, 2018, and specified by the Secretary 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--
            ``(1) any substance''; and
                    (B) by striking the period at the end and inserting 
                ``; and
            ``(2) any substance not covered under paragraph (1) that 
        was a substance under such section as of December 1, 2018, and 
        specified by the Secretary 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 substance under such section as of 
                December 1, 2018, and whose use the Secretary of 
                Transportation decides has a risk to transportation 
                safety.''.
            (7) Prison contraband.--Section 1791(d)(1) of title 18, 
        United States Code, is amended--
                    (A) in subparagraph (A), by striking ``marijuana 
                or'';
                    (B) in subparagraph (B), by striking ``marijuana 
                or''; and
                    (C) in subparagraph (D), by inserting ``, cannabis, 
                as defined in section 3 of the Cannabis Administration 
                and Opportunity Act,'' after ``subsection)''.
            (8) Other contraband.--Section 80302(a)(1) of title 49, 
        United States Code, is amended by striking ``, including 
        marihuana (as defined in section 102 of that Act (21 U.S.C. 
        802)),''.
            (9) Tariff act provisions.--Section 584(a)(2) of the Tariff 
        Act of 1930 (19 U.S.C. 1584(a)(2)) is amended--
                    (A) by striking the second sentence and inserting 
                ``If any of such merchandise so found consists of 
                smoking opium or opium prepared for smoking, the master 
                of such vessel or person in charge of such vehicle or 
                the owner of such vessel or vehicle or any person 
                directly or indirectly responsible for smoking opium or 
                opium prepared for smoking being in such merchandise 
                shall be liable to a penalty of $500 for each ounce 
                thereof so found.''; and
                    (B) by striking the last sentence and inserting 
                ``As used in this paragraph, the term `opiate' shall 
                have the same meaning given that term by sections 
                102(18) of the Controlled Substances Act (21 U.S.C. 
                802(18)).''.
    (d) Retroactivity.--
            (1) In general.--The amendments made by this section to the 
        Controlled Substances 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 offense committed, case pending, or adjudication of 
        juvenile delinquency entered before, on, or after the date of 
        enactment of this Act.
            (2) Application to pending actions.--With respect to any 
        pending criminal charges or case and conviction awaiting 
        sentencing that is impacted by the amendments to the Controlled 
        Substances Act (21 U.S.C. 801 et seq.) made by this section, 
        the Government shall drop the relevant charges or seek 
        dismissal of all pending charges not later than 30 days after 
        the date of enactment of this Act. Any person held in pretrial 
        detention and entitled to dismissal of relevant charges under 
        this provision, and not detained for any other reason, shall be 
        entitled to issuance of a writ under section 1361 or 2241 of 
        title 28, United States Code, to effectuate immediate release.
            (3) Application to defendants previously sentenced.--Not 
        later than 60 days after the date of enactment of this Act, the 
        Director of the Bureau of Prisons, United States Marshals 
        Service, or United States Parole Commission, as applicable, 
        shall release from its control, and the sentencing court shall 
        enter an order vacating the conviction and sentence for, any 
        individual convicted or sentenced before the date of enactment 
        of this Act for any Federal offense involving marijuana, 
        marihuana (as defined in section 202(16) of the Controlled 
        Substances Act (21 U.S.C. 812(16))), or tetrahydrocannabinols 
        and is not serving a sentence for any conduct not covered by 
        this Act or serving multiple sentences as provided in section 
        3584 of title 18, United States Code. Any person not so timely 
        released and entitled to such release under this provision 
        shall be entitled to issuance of a writ under section 1361 or 
        2241 of title 28, United States Code, to effectuate immediate 
        release.
            (4) Cumulative sentencing reconsideration.--In the case of 
        a defendant who, before the date of enactment of this Act, was 
        convicted or sentenced for any Federal offense involving 
        marijuana, marihuana, or tetrahydrocannabinols, and, after 
        vacatur of that sentence, is also serving a sentence for any 
        other crime not covered by this Act, or in the case of a 
        defendant who was convicted or sentenced for any Federal 
        offense the sentencing range for which was elevated based on a 
        prior conviction for an offense involving marijuana, marihuana, 
        or tetrahydrocannabinols, the sentencing court may, on motion 
        of the defendant, the Director of the Bureau of Prisons, the 
        Attorney General, or, on its own motion, impose a reduced 
        sentence after considering the factors set forth in section 
        3553(a) of title 18, United States Code.
    (e) Special Rule for Federal Employee Testing.--Section 503 of the 
Supplemental Appropriations Act, 1987 (5 U.S.C. 7301 note) is amended 
by adding at the end the following:
    ``(h) Cannabis.--
            ``(1) Testing for cannabis.--
                    ``(A) In general.--For purposes of Executive Order 
                12564, cannabis shall not be treated as an illegal 
                drug.
                    ``(B) Exception for drug testing.--Notwithstanding 
                subparagraph (A) or the Cannabis Administration and 
                Opportunity Act and the amendments made thereby, the 
                Secretary of Health and Human Services or the head of 
                an agency may deem cannabis to be a schedule I 
                controlled substance within the meaning of section 
                102(6) of the Controlled Substances Act (21 U.S.C. 
                802(6)), and unlawful to possess under title II or III 
                of such Act, exclusively for the purpose of drug 
                testing of any law enforcement officer (as defined in 
                section 8331 of title 5, United States Code) or any 
                Federal employee in a position that the head of an 
                agency determines, in writing, to have significant 
                involvement in national security or the protection of 
                life, property, public health, or public safety, 
                provided that either such employee is subject to this 
                section, Executive Order 12564, or other applicable 
                Federal laws and orders.
            ``(2) Definition.--The term `cannabis' has the meaning 
        given the term in section 3 of the Cannabis Administration and 
        Opportunity Act.''.
    (f) 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 ``controlled 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
                    (B) any substance not covered under subparagraph 
                (A) that was a substance covered under section 102 of 
                the Controlled Substances Act (21 U.S.C. 802) on 
                December 1, 2018, and specified by the Secretary of 
                Transportation.

SEC. 102. TRANSFERRING AGENCY FUNCTIONS WITH REGARD TO CANNABIS.

    (a) Transfer of Jurisdiction From the Drug Enforcement 
Administration to the Department of Health and Human Services and the 
Department of the Treasury.--The functions of the Attorney General, 
acting through the Administrator of the Drug Enforcement Administration 
relating to cannabis enforcement, shall hereafter be administered by--
            (1) the Secretary of Health and Human Services, and
            (2) the Secretary of the Treasury.
    (b) Redesignation of Alcohol and Tobacco Tax and Trade Bureau as 
Alcohol, Tobacco, and Cannabis Tax and Trade Bureau.--
            (1) Redesignation.--Section 1111(d) of the Homeland 
        Security Act of 2002 (6 U.S.C. 531(d)) is amended by striking 
        ``Tax and Trade Bureau'' each place it appears and inserting 
        ``Alcohol, Tobacco, and Cannabis Tax and Trade Bureau''.
            (2) References.--Any reference to the Tax and Trade Bureau 
        or the Alcohol and Tobacco Tax and Trade Bureau in any law, 
        regulation, map, document, record, or other paper of the United 
        States shall be deemed to be a reference to the Alcohol, 
        Tobacco, and Cannabis Tax and Trade Bureau.
    (c) Memorandum of Understanding.--
            (1) In general.--For purposes of carrying out the purposes 
        of this Act, not later than 180 days after the date of 
        enactment of this Act, the Secretary of the Treasury (acting 
        through the Alcohol, Tobacco, and Cannabis Tax and Trade 
        Bureau, as so redesignated under subsection (b)) and the 
        Secretary of Health and Human Services (acting through the 
        Commissioner of Food and Drugs) shall enter into memorandum of 
        understanding regarding coordination of their respective 
        responsibilities with regard to regulation of cannabis and 
        cannabis products.
            (2) Compliance burdens.--For purposes of establishing the 
        memorandum of understanding described in paragraph (1), the 
        Secretary of the Treasury and the Secretary of Health and Human 
        Services shall include consideration of--
                    (A) any compliance burdens imposed on persons 
                involved in the cannabis industry who are subject to 
                regulation under this Act and the amendments made by 
                this Act, and
                    (B) to the greatest extent practicable, reduction 
                of any unnecessary administrative duplication with 
                respect to such regulation.

              Subtitle B--Public Safety and States' Rights

SEC. 111. STATES' RIGHTS.

    (a) State Statutes as Operative on Termination of Transportation; 
Original Packages.--All cannabis transported into any State or 
territory of the United States or remaining therein for use, 
consumption, sale, or storage therein, shall, upon arrival in that 
State or territory, be subject to the operation and effect of the laws 
of that State or territory enacted in the exercise of its police 
powers, to the same extent and in the same manner as though the 
cannabis had been produced in that State or territory, and shall not be 
exempt therefrom by reason of being introduced therein in original 
packages or otherwise.
    (b) Shipment Into States for Possession or Sale in Violation of 
State Law.--The shipment or transportation, in any manner or by any 
means whatsoever, of cannabis from a State, territory, or district of 
the United States, or place noncontiguous to but subject to the 
jurisdiction thereof, into any other State, territory, or district of 
the United States, or place noncontiguous to but subject to the 
jurisdiction thereof, or from any foreign country into any State, 
territory, or district of the United States, or place noncontiguous to 
but subject to the jurisdiction thereof, which said cannabis is 
intended, by any person interested therein, to be received, possessed, 
sold, or in any manner used, either in the original package or 
otherwise, in violation of any law of that State, territory, or 
district of the United States, or place noncontiguous to but subject to 
the jurisdiction thereof, is prohibited.
    (c) Transportation of Cannabis and Cannabis Products.--No State or 
Indian Tribe may prohibit the transportation or shipment of cannabis or 
cannabis products through the State or the territory of the Indian 
Tribe, as applicable.
    (d) Injunctive Relief.--Section 2 of the Victims of Trafficking and 
Violence Protection Act of 2000 (27 U.S.C. 122a) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively; and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) the term `cannabis' has the meaning given the term in 
        section 3 of the Cannabis Administration and Opportunity Act 
        ;''; and
            (2) in subsections (b) and (c), by inserting ``or 
        cannabis'' after ``intoxicating liquor'' each place it appears.

SEC. 112. DIVERSION OF CANNABIS.

    (a) In General.--
            (1) Violations of cannabis laws or regulations; penalties 
        and injunctions.--
                    (A) Definition.--In this paragraph, the term 
                ``common or contract carrier'' means a carrier holding 
                a certificate of convenience and necessity, a permit 
                for contract carrier by motor vehicle, or other valid 
                operating authority under subtitle IV of title 49, 
                United States Code, or under equivalent operating 
                authority from a regulatory agency of the United States 
                or of any State.
                    (B) Cannabis diversion.--
                            (i) In general.--Except as provided in 
                        clause (ii), it shall be unlawful to--
                                    (I) knowingly grow, manufacture, 
                                ship, transport, receive, possess, 
                                sell, or distribute or purchase 10 
                                pounds or more of cannabis without 
                                authorization under a State law or 
                                pursuant to a permit issued under 
                                section 301 of the Federal Alcohol 
                                Administration Act, as added by section 
                                511 of this Act; or
                                    (II) knowingly possess 10 pounds or 
                                more of cannabis that bears no evidence 
                                of the payment of applicable State or 
                                local cannabis taxes in the State or 
                                locality where the cannabis is found, 
                                if--
                                            (aa) the State or local 
                                        government requires a stamp, 
                                        impression, or other indication 
                                        to be placed on packages or 
                                        other containers of cannabis to 
                                        evidence payment of cannabis 
                                        taxes; and
                                            (bb) the cannabis is in the 
                                        possession of any person other 
                                        than a person holding a permit 
                                        under section 301 of the 
                                        Federal Alcohol Administration 
                                        Act, as added by section 511 of 
                                        this Act;
                                    (III) knowingly grow, manufacture, 
                                ship, transport, receive, possess, 
                                sell, or distribute or purchase 20 
                                pounds or more of cannabis without 
                                authorization under a State law or 
                                pursuant to a permit issued under 
                                section 301 of the Federal Alcohol 
                                Administration Act, as added by section 
                                511 of this Act; or
                                    (IV) knowingly possess 20 pounds or 
                                more of cannabis that bears no evidence 
                                of the payment of applicable State or 
                                local cannabis taxes in the State or 
                                locality where the cannabis is found, 
                                if--
                                            (aa) the State or local 
                                        government requires a stamp, 
                                        impression, or other indication 
                                        to be placed on packages or 
                                        other containers of cannabis to 
                                        evidence payment of cannabis 
                                        taxes; and
                                            (bb) the cannabis is in the 
                                        possession of any person other 
                                        than a person holding a permit 
                                        under section 301 of the 
                                        Federal Alcohol Administration 
                                        Act, as added by section 511 of 
                                        this Act.
                            (ii) Exceptions.--Clause (i) shall not 
                        apply to--
                                    (I) a common or contract carrier 
                                transporting the cannabis involved 
                                under a proper bill of lading or 
                                freight bill which states the quantity, 
                                source, and destination of the 
                                cannabis;
                                    (II) a person--
                                            (aa) who is licensed or 
                                        otherwise authorized by the 
                                        State where the cannabis is 
                                        found to account for and pay 
                                        cannabis taxes imposed by such 
                                        State; and
                                            (bb) who has complied with 
                                        the accounting and payment 
                                        requirements relating to such 
                                        license or authorization with 
                                        respect to the cannabis 
                                        involved;
                                    (III) an officer, employee, or 
                                other agent of the United States, an 
                                Indian Tribe, or a State, or any 
                                department, agency, or instrumentality 
                                of the United States, an Indian Tribe, 
                                or a State (including any political 
                                subdivision of an Indian Tribe or a 
                                State) having possession of the 
                                cannabis in connection with the 
                                performance of official duties; or
                                    (IV) a person--
                                            (aa) involved in the 
                                        manufacture, marketing, or 
                                        distribution of a drug 
                                        containing cannabis that is 
                                        otherwise in compliance with 
                                        State and Federal law; and
                                            (bb) who possesses cannabis 
                                        in connection with the lawful 
                                        activities described in item 
                                        (aa).
                            (iii) Penalty.--Any person who violates--
                                    (I) subclause (I) or (II) of clause 
                                (i) shall be imprisoned not more than 1 
                                year, fined not more than $50,000, or 
                                both; or
                                    (II) subclause (III) or (IV) of 
                                clause (i) shall be imprisoned not more 
                                than 5 years, fined not more than 
                                $100,000, or both.
            (2) Fines.--The penalty provided for in this subsection may 
        be recovered by the Secretary of the Treasury or by an action 
        brought by the Attorney General in any court of competent 
        jurisdiction.
            (3) Enforcement.--It shall be the duty of the Attorney 
        General upon the request of the Secretary of the Treasury to 
        bring an action for an injunction against any person who 
        violates, disobeys or disregards any term or provision of this 
        subtitle or of any lawful notice, order or regulation pursuant 
        thereto; provided, however, that the Secretary of the Treasury 
        shall furnish the Attorney General with such material, 
        evidentiary matter or proof as may be requested by the Attorney 
        General for the prosecution of such an action.
    (b) Tracking and Tracing Regulations.--
            (1) Issuance of tracking and tracing regulations.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Secretary of the 
                Treasury (referred to in this section as the 
                ``Secretary''), acting through the Administrator of the 
                Alcohol, Tobacco, and Cannabis Tax and Trade Bureau and 
                in coordination with the Secretary of Health and Human 
                Services, shall issue regulations relating to the 
                tracking and tracing of cannabis products pursuant to 
                paragraph (2).
                    (B) Good faith consultation with indian tribes.--In 
                issuing regulations under subparagraph (A), the 
                Secretary, acting through the Administrator of the 
                Alcohol, Tobacco, and Cannabis Tax and Trade Bureau and 
                in coordination with the Secretary of Health and Human 
                Services, shall conduct good faith, meaningful, and 
                timely consultations with Indian Tribes.
            (2) Regulations concerning recordkeeping for tracking and 
        tracing.--
                    (A) In general.--The Secretary shall promulgate 
                regulations regarding the establishment and maintenance 
                of records by any person who manufactures, processes, 
                transports, distributes, receives, packages, holds, 
                exports, or imports cannabis products.
                    (B) Inspection.--In promulgating the regulations 
                described in subparagraph (A), the Secretary shall 
                consider which records are needed for inspection to 
                monitor the movement of cannabis products from the 
                point of production through distribution to retail 
                outlets to assist in investigating potential illicit 
                trade, smuggling, or counterfeiting of cannabis 
                products.
                    (C) Codes.--The Secretary may require codes on the 
                labels of cannabis products or other designs or devices 
                for the purpose of tracking or tracing the cannabis 
                product through the distribution system.
                    (D) Size of business.--The Secretary shall take 
                into account the size of a business in promulgating 
                regulations under this section.
                    (E) Recordkeeping by retailers.--The Secretary 
                shall not require any retailer to maintain records 
                relating to individual purchasers of cannabis products 
                for personal consumption.
            (3) Records inspection.--
                    (A) In general.--If the Secretary has a reasonable 
                belief that a cannabis product is part of an illicit 
                trade or smuggling or is a counterfeit product, each 
                person who manufactures, processes, transports, 
                distributes, receives, holds, packages, exports, or 
                imports cannabis products shall, at the request of an 
                officer or employee duly designated by the Secretary, 
                permit such officer or employee, at reasonable times 
                and within reasonable limits and in a reasonable 
                manner, upon the presentation of appropriate 
                credentials and a written notice to such person, to 
                have access to and copy all records (including 
                financial records) relating to such article that are 
                needed to assist the Secretary in investigating 
                potential illicit trade, smuggling, or counterfeiting 
                of cannabis products. The Secretary shall not authorize 
                an officer or employee of the government of any of the 
                several States to exercise authority under the 
                preceding sentence on Indian country without the 
                express written consent of the Indian Tribe involved.
                    (B) Failure to comply.--
                            (i) Compel inspections.--The district 
                        courts of the United States shall have the 
                        authority, pursuant to a civil action brought 
                        by the Secretary, to compel access by any 
                        officer or employee duly designated by the 
                        Secretary to any relevant records described in 
                        subparagraph (A).
                            (ii) Penalty.--Any person who--
                                    (I) denies access to any relevant 
                                records described in subparagraph (A) 
                                to any officer or employee duly 
                                designated by the Secretary; or
                                    (II) fails to comply with an order 
                                issued by a district court pursuant to 
                                clause (i),
                        shall be fined not more than $10,000.
            (4) Knowledge of illegal transaction.--
                    (A) Notification.--If the manufacturer or 
                distributor of a cannabis product has knowledge which 
                reasonably supports the conclusion that a cannabis 
                product manufactured or distributed by such 
                manufacturer or distributor that has left the control 
                of such person may be or has been--
                            (i) imported, exported, distributed, or 
                        offered for sale in interstate commerce by a 
                        person without paying duties or taxes required 
                        by Federal, Tribal, or State law; or
                            (ii) imported, exported, distributed, or 
                        diverted for possible illicit marketing,
                the manufacturer or distributor shall promptly notify 
                the Attorney General and the Secretary of such 
                knowledge.
                    (B) Knowledge defined.--For purposes of this 
                paragraph, the term ``knowledge'' as applied to a 
                manufacturer or distributor means--
                            (i) the actual knowledge that the 
                        manufacturer or distributor had; or
                            (ii) the knowledge which a reasonable 
                        person would have had under like circumstances 
                        or which would have been obtained upon the 
                        exercise of due care.
            (5) Consultation.--In carrying out this subsection, the 
        Secretary shall consult with the Attorney General and the 
        Commissioner of Food and Drugs, as appropriate.
            (6) Consideration of state and other precedent.--In 
        promulgating the regulations described in this subsection, the 
        Secretary shall consider--
                    (A) recommendations and findings by the Cannabis 
                Products Advisory Committee established under section 
                1111 of the Federal Food, Drug, and Cosmetic Act;
                    (B) current practices of States regarding cannabis 
                and the practices of other regulated industries; and
                    (C) whether, during the 3-year period described in 
                section 505(b)(1), unique standards for cannabis 
                specified for medical use under State law are necessary 
                or appropriate.

              TITLE II--RESEARCH, TRAINING, AND PREVENTION

           Subtitle A--Public Health and Biomedical Research

SEC. 201. SOCIETAL IMPACT OF CANNABIS LEGALIZATION STUDY.

    (a) In General.--The Comptroller General of the United States shall 
conduct an evaluation of the societal impact of the legalization by 
States of adult-use of cannabis. Such evaluation shall address, where 
information and data are available, a review of the following:
            (1) Federal and State law enforcement activities, 
        including--
                    (A) arrests related to illicit use, possession, 
                production, manufacture, and distribution of cannabis; 
                and
                    (B) diversion and seizures of cannabis.
            (2) Employment and the receipt of Federal welfare 
        assistance.
            (3) Changes in the utilization of health care, including 
        hospitalization related to methamphetamine and narcotic use and 
        the use of cannabis for medical purposes.
            (4) Analysis of tax revenue remitted to States resulting 
        from legal cannabis sales.
            (5) Any additional areas identified by the Comptroller 
        General of the United States.
    (b) Report.--The Comptroller General of the United States--
            (1) not later than 2 years after the date of enactment of 
        this Act, shall brief the Committee on Finance, the Committee 
        on Health, Education, Labor, and Pensions, and the Committee on 
        the Judiciary of the Senate and the Committee on Ways and 
        Means, the Committee on Energy and Commerce, and the Committee 
        on the Judiciary of the House of Representatives on the 
        preliminary findings of the evaluation under subsection (a); 
        and
            (2) at a date agreed upon at the time of the preliminary 
        briefing described in paragraph (1), submit a final report to 
        such committees.

SEC. 202. BIOMEDICAL RESEARCH ON CANNABIS.

    (a) In General.--The Secretary of Health and Human Services 
(referred to in this section as the ``Secretary''), in consultation 
with the Director of the National Institutes of Health, shall conduct 
or support research on the impacts of cannabis.
    (b) Topics.--The research conducted or supported under subsection 
(a) may include research on--
            (1) the effects of tetrahydrocannabinol on the human brain;
            (2) the efficacy of cannabis as a treatment for specific 
        diseases and conditions, including any impact on chronic pain 
        and post-traumatic stress disorder;
            (3) the impact of the use of cannabis on--
                    (A) pulmonary function;
                    (B) cardiovascular events;
                    (C) cancer, including testicular, ovarian, 
                transitional cell, and head, neck, and oral cancers, 
                and chronic illnesses;
                    (D) mania;
                    (E) psychosis;
                    (F) cognitive effects; and
                    (G) cannabinoid hyperemesis syndrome; and
            (4) the identification of additional medical benefits, 
        harms, and uses of cannabis.
    (c) Considerations.--In conducting or supporting the research under 
subsection (a), the Secretary may consider--
            (1) varying forms of cannabis, including--
                    (A) full plants and extracts; and
                    (B) different types of cannabis with significant 
                variation in phenotypic traits and various ratios of 
                tetrahydrocannabinol and cannabidiol in chemical 
                composition; and
            (2) varying methods of cannabis delivery, including 
        combustible and non-combustible inhalation and ingestion.
    (d) Annual Reports.--Not later than 18 months after the date of 
enactment of this Act, and annually thereafter for the next 4 years, 
the Secretary shall submit to the Committee on Health, Education, 
Labor, and Pensions and the Committee on Appropriations of the Senate 
and the Committee on Energy and Commerce and the Committee on 
Appropriations of the House of Representatives, a report that includes 
an overview of the research conducted and supported under this section.
    (e) Funding.--In addition to amounts otherwise available, there is 
appropriated, out of any funds in the Treasury not otherwise 
appropriated, $200,000,000 for each of fiscal years 2023 through 2027 
to carry out this section.

SEC. 203. PUBLIC HEALTH SURVEILLANCE AND DATA COLLECTION.

    (a) In General.--Section 392A of the Public Health Service Act (42 
U.S.C. 280b-1) is amended--
            (1) in the section heading, by inserting ``and adverse 
        health effects of cannabis use'' after ``substances'';
            (2) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (C) by inserting ``and 
                        adverse health effects of cannabis use'' before 
                        the period; and
                            (ii) in subparagraph (D) by inserting ``, 
                        cannabis, and polysubstance use'' before the 
                        period; and
                    (B) in paragraph (4), by inserting ``and collect 
                data to better understand the use and health effects of 
                cannabis, stimulants, and polysubstances, and'' after 
                ``conduct studies and evaluations'';
            (3) in subsection (d), by striking ``$496,000,000 for each 
        of fiscal years 2019 through 2023'' and inserting 
        ``$596,000,000 for each of fiscal years 2023 through 2027''; 
        and
            (4) by adding at the end the following:
    ``(e) Additional Funding.--In addition to amounts otherwise 
available, there is appropriated, out of any funds in the Treasury not 
otherwise appropriated, $100,000,000 for each of fiscal years 2023 
through 2027 to carry out this section.''.

SEC. 204. AWARDS TO PREVENT UNDERAGE CANNABIS USE.

    Part D of title V of the Public Health Service Act (42 U.S.C. 290dd 
et seq.) is amended by adding at the end the following:

``SEC. 553. AWARDS TO PREVENT UNDERAGE CANNABIS USE.

    ``(a) In General.--The Secretary, acting through the Assistant 
Secretary, shall award grants, contracts, and cooperative agreements to 
eligible entities to prevent and reduce underage cannabis use.
    ``(b) Eligible Entities.--To receive an award under this section, 
an entity shall be a State, political subdivision of a State, Indian 
Tribe or Tribal organization, an urban Indian organization, a nonprofit 
community-based organization, or any other nonprofit entity the 
Secretary determines appropriate.
    ``(c) Use of Funds.--An eligible entity receiving an award under 
this subsection shall use funds from such award to--
            ``(1) establish, enhance, and support culturally- and 
        linguistically-appropriate programs, including community-based, 
        school-based, and higher-education based programs, and programs 
        that target youth within the juvenile justice and child welfare 
        systems, that offer screening, prevention, early intervention, 
        diagnosis, treatment, referral, and recovery support services 
        related to underage cannabis use;
            ``(2) design, test, evaluate, and disseminate evidence-
        based and evidence-informed strategies to maximize the 
        effectiveness of community-wide approaches to preventing and 
        reducing underage cannabis use;
            ``(3) educate children, adolescents, youth, parents, health 
        care providers, and communities about the dangers of underage 
        cannabis use, including impaired driving due to cannabis use;
            ``(4) collect data on underage cannabis use to identify and 
        address needs, service gaps, and trends;
            ``(5) strengthen collaboration among communities, the 
        Federal Government, and State, local, and Tribal governments to 
        prevent underage cannabis use;
            ``(6) address community norms regarding underage cannabis 
        use, reduce opportunities for underage cannabis use, and reduce 
        the prevalence of negative consequences associated with 
        underage cannabis use; and
            ``(7) support other evidence-based and evidence-informed 
        practices to reduce underage cannabis use, as determined by the 
        Secretary.
    ``(d) Supplement Not Supplant.--Funds awarded under this section 
shall supplement, and not supplant, existing State, Federal, local, and 
Tribal funds to prevent and reduce underage cannabis use.
    ``(e) Priority Consideration.--In making awards under this section, 
the Secretary shall give priority to eligible entities that serve 
medically underserved communities, communities with high rates of 
underage cannabis use, and communities that have historically 
experienced disproportionate arrest and conviction rates related to the 
sale, possession, use, manufacture, or cultivation of cannabis (but not 
counting convictions involving distribution of cannabis to a minor).
    ``(f) Funding.--In addition to amounts otherwise available, there 
is appropriated, out of any funds in the Treasury not otherwise 
appropriated, $15,000,000 for each of fiscal years 2023 through 2027 to 
carry out this section.
    ``(g) Definitions.--For the purposes of this section--
            ``(1) the terms `Indian Tribe' and `Tribal organization' 
        have the meanings given such terms in section 4 of the Indian 
        Self-Determination and Education Assistance Act; and
            ``(2) the term `urban Indian organization' has the meaning 
        given such term in section 4 of the Indian Health Care 
        Improvement Act.''.

SEC. 205. NATIONAL MEDIA CAMPAIGNS ON CANNABIS USE.

    (a) In General.--The Secretary of Health and Human Services 
(referred to in this section as the ``Secretary''), in consultation 
with the Administrator of the National Highway Traffic Safety 
Administration, shall fund and oversee the production, broadcasting, 
and evaluation of a national public service media campaign to prevent 
and reduce underage cannabis use and cannabis impaired driving. Such 
campaign shall--
            (1) educate the public about--
                    (A) the negative consequences of underage cannabis 
                use and cannabis impaired driving; and
                    (B) the public health and safety benefits of 
                evidence-based and evidence-informed policies to reduce 
                underage cannabis use and cannabis impaired driving, 
                and build community and parental support for, and 
                cooperation with, enforcement of such policies; and
            (2) be conducted--
                    (A) through multiple media sources;
                    (B) in a manner that is culturally and 
                linguistically appropriate; and
                    (C) in a manner that reflects best practices in 
                public health communication, including in accessible 
                formats.
            (3) Consultation requirement.--In carrying out the campaign 
        under this subsection, the Secretary shall consult with 
        interested parties, including medical, public health, consumer, 
        parent, disability, law enforcement, community-based, and other 
        stakeholders, as determined by the Secretary.
    (b) Education and Awareness Campaign for Cannabis Use.--The 
Secretary, in coordination with the heads of other appropriate 
departments and agencies and working through existing programs and 
activities, as appropriate, shall advance the education and awareness 
of the public (including health care providers, consumers, workplaces, 
and other appropriate entities) regarding cannabis use. The education 
and awareness campaigns under this subsection shall address--
            (1) any dangers and negative consequences of cannabis use;
            (2) awareness and prevention of cannabis use disorder;
            (3) the effects of cannabis on the human body, including 
        with respect to the use of cannabis in different circumstances 
        such as the workplace and while operating motor vehicles;
            (4) the effects of cannabis when mixed with other 
        substances; and
            (5) other relevant public health or biomedical research, as 
        the Secretary determines appropriate.
    (c) Report to Congress.--The Secretary shall submit an annual 
report to the Committee on Health, Education, Labor, and Pensions of 
the Senate and the Committee on Energy and Commerce of the House of 
Representatives detailing the production, broadcasting, and evaluation 
of the campaigns under subsections (a) and (b). Such reports shall 
include--
            (1) details regarding the effectiveness of such campaigns 
        in reducing underage cannabis use;
            (2) the need for, and likely effectiveness of, an expanded 
        campaign under either such subsection; and
            (3) details regarding the consultation the Secretary 
        engaged in pursuant to subsection (a)(2).
    (d) Funding.--In addition to amounts otherwise available, there is 
appropriated, out of any funds in the Treasury not otherwise 
appropriated, $5,000,000 for each of fiscal years 2023 through 2027 to 
carry out this section.

SEC. 206. INCREASING AVAILABILITY OF CANNABIS PRODUCTS FOR RESEARCH 
              PURPOSES.

    (a) In General.--The Secretary of Health and Human Services 
(referred to in this section as the ``Secretary''), acting through the 
Director of the National Institutes of Health and in collaboration with 
the Commissioner of Food and Drugs and the Attorney General, shall take 
steps to increase the availability and diversity of research grade 
cannabis products for intramural and extramural research activities, 
including cannabis products with varied cannabinoid concentrations and 
cannabis products that reflect regional differences in products 
available to be sold directly to consumers.
    (b) Guidance.--In carrying out subsection (a), the Secretary may 
develop guidance clarifying how entities engaged in extramural research 
supported by the Federal Government may access cannabis products 
available to be sold directly to consumers.
    (c) Congressional Briefing.--Not later than 1 year after the date 
of enactment of this Act, the Secretary shall brief the Committee on 
Health, Education, Labor, and Pensions and the Committee on the 
Judiciary of the Senate and the Committee on Energy and Commerce and 
the Committee on the Judiciary of the House of Representatives on the 
activities under subsection (a).
    (d) Funding.--In addition to amounts otherwise available, there is 
appropriated, out of any funds in the Treasury not otherwise 
appropriated, $275,000,000 for each of fiscal years 2023 through 2027 
to carry out this section.

SEC. 207. TRANS-NIH CANNABIS CONSORTIUM.

    Part A of title IV of the Public Health Service Act (42 U.S.C. 281 
et seq.) is amended by inserting at the end the following:

``SEC. 404O. TRANS-NIH CANNABIS CONSORTIUM.

    ``(a) Establishment.--The Director of NIH shall establish and 
maintain a consortium to be known as the Trans-NIH Cannabis Research 
Consortium (referred to in this section as the `Consortium') to 
coordinate cannabis research programs across the National Institutes of 
Health.
    ``(b) Membership.--The members of the Consortium shall be appointed 
by the Director of NIH and consist of representatives of multiple 
national research institutes and national centers.
    ``(c) Chair.--The Chair of the Consortium shall be the Director of 
the National Institute on Drug Abuse (or the Director's designee).
    ``(d) Duties.--In coordinating cannabis research programs across 
the National Institutes of Health, the Consortium shall--
            ``(1) establish cannabis research priorities;
            ``(2) identify gaps and opportunities for research 
        collaborations involving multiple national research institutes 
        and national centers; and
            ``(3) identify opportunities to develop the next generation 
        of cannabis researchers.
    ``(e) Consultation.--The Consortium shall consult regularly with 
external experts in the field of cannabis research, as appropriate, 
including industry, patient organizations, and other stakeholders.
    ``(f) Reporting.--No later than 1 year after the date of enactment 
of the Cannabis Administration and Opportunity Act, and every 2 years 
thereafter, the Consortium shall submit to the Committee on Health, 
Education, Labor, and Pensions of the Senate and the Committee on 
Energy and Commerce of the House of Representatives, and make publicly 
available on the website of the National Institutes of Health, a report 
on--
            ``(1) any research project involving cannabis and involving 
        more than one national research institute or national center 
        that was supported during the review period;
            ``(2) any strategic initiatives that include a significant 
        component related to cannabis;
            ``(3) career development awards for early-career 
        researchers focused in cannabis research, including specific 
        numbers of awards and amount of funding, made during the review 
        period;
            ``(4) details on the composition of awards for early-career 
        researchers, including demographic details indicating the 
        proportion of recipients from populations that have been 
        underrepresented in cannabis research; and
            ``(5) such other information as the Director of NIH 
        determines appropriate.''.

SEC. 208. CANNABIS RESEARCH INTERAGENCY ADVISORY COMMITTEE.

    (a) In General.--There is established within the Department of 
Health and Human Services a Cannabis Research Interagency Advisory 
Committee (referred to in this subsection as the ``Advisory 
Committee'') for purposes of coordinating--
            (1) Federal research activities relating to cannabis; and
            (2) aspects of all Federal programs and activities relating 
        to cannabis research, in order to ensure the adequacy and 
        technical soundness of such programs and activities, to 
        minimize barriers to such programs and activities, to provide 
        for the full communication and exchange of information 
        necessary to maintain adequate coordination of such programs 
        and activities.
    (b) Members.--The Advisory Committee established under subsection 
(a) shall consist of the heads of the following agencies or their 
designees:
            (1) The National Institutes of Health.
            (2) The Centers for Disease Control and Prevention.
            (3) The Food and Drug Administration.
            (4) The Substance Abuse and Mental Health Services 
        Administration.
            (5) The Office of the Assistant Secretary of Health.
            (6) The Office of Minority Health.
            (7) The Drug Enforcement Administration.
            (8) The Alcohol, Tobacco, and Cannabis Tax and Trade Bureau 
        (as so redesignated by section 102 of this Act).
            (9) The Department of Transportation.
            (10) Any other agency with subject matter expertise that 
        the Secretary of Health and Human Services determines 
        appropriate to advance research on cannabis.
    (c) Responsibilities.--In carrying out its duties under this 
section, the Advisory Committee shall--
            (1) monitor cannabis research across all relevant Federal 
        departments and agencies, including coordination of Federal 
        activities with respect to cannabis;
            (2) develop a summary of advances in cannabis research;
            (3) identify barriers to conducting or supporting cannabis 
        research;
            (4) make recommendations to the Secretary of Health and 
        Human Services regarding any appropriate changes to such 
        activities;
            (5) make recommendations to the Secretary of Health and 
        Human Services regarding public participation in decisions 
        relating to cannabis research, and the process by which public 
        feedback can be better integrated into such decisions;
            (6) develop a strategic plan for the conduct of, and 
        support for, cannabis research, which shall include--
                    (A) proposed budgetary requirements; and
                    (B) recommendations to ensure that cannabis 
                research of the Department of Health and Human Services 
                and of other Federal departments and agencies are not 
                unnecessarily duplicative; and
            (7) submit to Congress and the President--
                    (A) an annual update on the summary of advances 
                described in paragraph (2); and
                    (B) an annual update to the strategic plan 
                described in paragraph (5), including any progress made 
                in achieving the goals outlined in such strategic plan.

SEC. 209. AWARDS FOR CANNABIS RESEARCH.

    (a) In General.--The Secretary of Health and Human Services 
(referred to in this section as the ``Secretary'') shall award grants, 
contracts, or cooperative agreements to public and nonprofit entities 
(including consortiums of such entities) to conduct or support research 
on short- and long-term health effects of cannabis, considering 
beneficial and harmful effects and public health impacts. Such research 
may--
            (1) consider the etiology, epidemiology, and health effects 
        of cannabis use in at-risk or under researched populations, 
        such as pediatric and older populations, individuals with 
        chronic illnesses, pregnant and lactating women and their 
        infants and children, and heavy cannabis users;
            (2) consider the pharmacokinetic and pharmacodynamic 
        properties of cannabis, modes of delivery, different 
        concentrations, in various populations, including the dose-
        response relationships of cannabis and tetrahydrocannabinol or 
        other cannabinoids;
            (3) consider the harms and benefits associated with 
        understudied cannabis products, such as edibles, concentrates, 
        and topical products;
            (4) consider the short- and long-term harms and benefits 
        associated with exposure to chemicals and other products 
        commonly involved in the growing, possessing, and selling of 
        cannabis;
            (5) utilize clinical trials on the potential beneficial and 
        harmful health effects of using different forms of cannabis, 
        such as inhaled whole cannabis plant and oral cannabis;
            (6) seek to characterize the health effects of cannabis on 
        unstudied and understudied health endpoints, such as epilepsy 
        in pediatric populations, symptoms of posttraumatic stress 
        disorder, childhood and adult cancers, cannabis-related 
        overdoses and poisonings, and other high-priority health 
        endpoints; and
            (7) provide support for the development of novel diagnostic 
        technologies that allow for rapid, accurate, and noninvasive 
        assessment of cannabis exposure and impairment.
    (b) Application.--To be eligible to receive an award under this 
section, an entity shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may require.
    (c) Priority.--In selecting award recipients under this section, 
the Secretary shall give priority to any entity that is a minority-
serving institution (defined, for purposes of this subsection, as an 
institution and program described in section 326(e)(1) of the Higher 
Education Act of 1965 (20 U.S.C. 1063b(e)(1)) and institution described 
in section 371(a) of such Act (20 U.S.C. 1067q(a))).
    (d) Considerations.--In making awards under this section, the 
Secretary, to the extent practicable, may ensure equitable distribution 
of awards among the geographical regions of the United States.
    (e) Reporting.--
            (1) Reports from entities.--Each entity, or consortium of 
        such entities, that receives an award under this section shall 
        submit an annual report to the Secretary on the activities 
        conducted under such award, and other information as the 
        Secretary may require.
            (2) Report to congress.--Not later than 5 years after the 
        date of enactment of this Act and every 5 years thereafter, the 
        Secretary shall submit to the Committee on Health, Education, 
        Labor, and Pensions of the Senate and the Committee on Energy 
        and Commerce of the House of Representatives a report that 
        provides a summary of the activities associated with awards 
        made under this section.
            (3) Public availability.--The Secretary shall make reports 
        submitted under paragraph (2) publicly available on the website 
        of the Department of Health and Human Services.
    (f) Funding.--In addition to amounts otherwise available, there is 
appropriated, out of any funds in the Treasury not otherwise 
appropriated, $200,000,000 for each of fiscal years 2023 through 2027 
to carry out this section.

SEC. 210. DEPARTMENT OF VETERANS AFFAIRS CLINICAL TRIALS ON THE EFFECTS 
              OF CANNABIS ON CERTAIN HEALTH OUTCOMES OF VETERANS WITH 
              CHRONIC PAIN AND POST-TRAUMATIC STRESS DISORDER.

    (a) Clinical Trials Required.--
            (1) In general.--The Secretary of Veterans Affairs shall 
        carry out a series of clinical trials on the effects of 
        medical-grade cannabis on the health outcomes of covered 
        veterans diagnosed with chronic pain and covered veterans 
        diagnosed with post-traumatic stress disorder.
            (2) Required elements.--The clinical trials required by 
        paragraph (1) shall include--
                    (A) with respect to covered veterans diagnosed with 
                chronic pain, an evaluation of the effects of the use 
                of cannabis on--
                            (i) osteopathic pain (including pain 
                        intensity and pain-related outcomes);
                            (ii) the reduction or increase in opioid 
                        use or dosage;
                            (iii) the reduction or increase in 
                        benzodiazepine use or dosage;
                            (iv) the reduction or increase in alcohol 
                        use;
                            (v) inflammation;
                            (vi) sleep quality;
                            (vii) agitation; and
                            (viii) quality of life; and
                    (B) with respect to covered veterans diagnosed with 
                post-traumatic stress disorder, an evaluation of the 
                effects of the use of cannabis on--
                            (i) the symptoms of post-traumatic stress 
                        disorder (PTSD) as established by or derived 
                        from the clinician administered PTSD scale, the 
                        PTSD checklist, the PTSD symptom scale, the 
                        post-traumatic diagnostic scale, and other 
                        applicable methods of evaluating symptoms of 
                        post- traumatic stress disorder;
                            (ii) the reduction or increase in 
                        benzodiazepine use or dosage;
                            (iii) the reduction or increase in alcohol 
                        use;
                            (iv) mood;
                            (v) anxiety;
                            (vi) social functioning;
                            (vii) agitation;
                            (viii) suicidal ideation; and
                            (ix) sleep quality, including frequency of 
                        nightmares and night terrors.
            (3) Optional elements.--The clinical trials required by 
        paragraph (1) may include an evaluation of the effects of the 
        use of cannabis to treat chronic pain and post-traumatic stress 
        disorder on--
                    (A) pulmonary function;
                    (B) cardiovascular events;
                    (C) head, neck, and oral cancer;
                    (D) testicular cancer;
                    (E) ovarian cancer;
                    (F) transitional cell cancer;
                    (G) intestinal inflammation;
                    (H) motor vehicle accidents;
                    (I) mania;
                    (J) psychosis;
                    (K) cognitive effects;
                    (L) cannabinoid hyperemesis syndrome;
                    (M) neuropathy;
                    (N) spasticity;
                    (O) substance use disorder; or
                    (P) mental health disorder.
    (b) Long-Term Observational Study.--The Secretary may carry out a 
long-term observational study of the participants in the clinical 
trials required by subsection (a).
    (c) Type of Cannabis.--
            (1) In general.--In carrying out the clinical trials 
        required by subsection (a), the Secretary shall study varying 
        forms of cannabis, including whole plant raw material and 
        extracts.
            (2) Plant cultivars.--Of the varying forms of cannabis 
        required under paragraph (1), the Secretary shall study not 
        fewer than seven unique plant cultivars with ratios of 
        tetrahydrocannabinol to cannabidiol in each of the following 
        categories:
                    (A) Less than 1:5.
                    (B) Between 1:2 and 1:5.
                    (C) Approximately 1:2.
                    (D) Approximately 1:1.
                    (E) Approximately 2:1.
                    (F) Between 2:1 and 5:1.
                    (G) More than 5:1.
    (d) Use of Control and Experimental Groups.--The clinical trials 
required by subsection (a) shall include both a control group and an 
experimental group that shall--
            (1) be of similar size and structure; and
            (2) represent the demographics of the veteran population, 
        as determined by the most recent data from the American 
        Community Survey of the Bureau of the Census that is available 
        prior to the commencement of the clinical trials.
    (e) Limitation on Enrollment of Certain Veterans.--In enrolling 
veterans in a clinical trial under subsection (a), the Secretary shall 
avoid enrolling veterans who--
            (1) have existing substance use disorder or are at high-
        risk for developing substance use disorder; or
            (2) have contraindications to medicinal cannabis, which may 
        include--
                    (A) veterans with acute psychosis or at-risk of 
                psychosis;
                    (B) veterans for whom cannabis is contraindicated 
                based on current medications taken, prescribed and 
                nonprescribed;
                    (C) veterans with severe cardiovascular, 
                immunological, liver, or kidney disease; and
                    (D) veterans who are pregnant or breastfeeding.
    (f) Data Preservation.--The clinical trials required by subsection 
(a) shall include a mechanism to ensure the preservation of all data, 
including all data sets, collected or used for purposes of such trials 
in a manner that will facilitate further research.
    (g) Implementation.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall--
            (1) develop a plan to implement this section and submit 
        such plan to the Committee on Veterans' Affairs of the Senate 
        and the Committee on Veterans' Affairs of the House of 
        Representatives; and
            (2) issue any requests for proposals the Secretary 
        determines appropriate for such implementation.
    (h) Effect on Other Benefits.--The eligibility or entitlement of a 
covered veteran to any other benefit under the laws administered by the 
Secretary or any other provision of law shall not be affected by the 
participation of the covered veteran in a clinical trial under 
subsection (a) or a study under subsection (b).
    (i) Periodic Reports.--During the five-year period beginning on the 
date of the enactment of this Act, the Secretary shall submit 
periodically, but not less frequently than annually, to the Committee 
on Veterans' Affairs of the Senate and the Committee on Veterans' 
Affairs of the House of Representatives reports on the implementation 
of this section.
    (j) Covered Veteran Defined.--In this section, the term ``covered 
veteran'' means a veteran who is enrolled in the patient enrollment 
system of the Department of Veterans Affairs established and operated 
under section 1705(a) of title 38, United States Code.

SEC. 211. CANNABIS RESEARCH INFRASTRUCTURE GRANTS.

    Title VIII of the Higher Education Act of 1965 (20 U.S.C. 1161a et 
seq.) is amended by adding at the end the following:

``SEC. 899. CANNABIS RESEARCH INFRASTRUCTURE GRANT PROGRAM.

    ``(a) In General.--The Secretary, in consultation with the 
Secretary of Health and Human Services and, as appropriate, with other 
relevant Federal agencies, shall award grants, on a competitive basis, 
to institutions of higher education to enable such institutions to 
develop or enhance the necessary infrastructure for exploratory 
cannabis research, including the cultivation of cannabis for research 
purposes.
    ``(b) Applications.--To be qualified to receive a grant under this 
section, an institution of higher education shall submit an application 
to the Secretary at such time, in such manner, and containing such 
information as the Secretary may require, including--
            ``(1) a description of the projects that the institution of 
        higher education plans to carry out with grant funds; and
            ``(2) how such projects will address the research 
        infrastructure needs of the institution of higher education.
    ``(c) Priority in Awards.--In awarding grants under this section, 
the Secretary shall give priority to--
            ``(1) institutions of higher education described in section 
        371(a);
            ``(2) under-resourced institutions of higher education, 
        including community colleges; and
            ``(3) institutions of higher education with experience in 
        conducting or supporting cannabis research or developing 
        academic courses or programs for students in the cannabis 
        industry.
    ``(d) Use of Funds.--An institution of higher education that 
receives a grant under this section shall use the grant funds to 
develop or enhance the necessary infrastructure for exploratory 
cannabis research, including--
            ``(1) cultivating cannabis for research purposes;
            ``(2) purchasing, renting, or leasing scientific or 
        laboratory equipment;
            ``(3) constructing or upgrading cultivation or laboratory 
        facilities;
            ``(4) purchasing or enhancing storage and security needs;
            ``(5) establishing school policies, procedures, or training 
        to conduct or support research, such as policies and training 
        to safely handle and store substances;
            ``(6) paying State fees to apply for and receive 
        certificates or registrations to handle certain substances; or
            ``(7) recruiting or retaining staff necessary for 
        developing or enhancing the cannabis research infrastructure of 
        the institution of higher education, including for training and 
        support purposes.
    ``(e) Awards.--Notwithstanding any other provision of law, 
activities supported by grants under this section shall not be 
considered violations of section 120 for the purposes of enforcing or 
assessing compliance with that section.
    ``(f) Definitions.--In this section:
            ``(1) Community college.--The term `community college' 
        means--
                    ``(A) a public institution of higher education, 
                including additional locations, at which the highest 
                awarded degree, or the predominantly awarded degree, is 
                an associate degree; or
                    ``(B) a Tribal College or University (as defined in 
                section 316).
            ``(2) Institution of higher education.--The term 
        `institution of higher education' has the meaning given that 
        term in section 101.
    ``(g) Funding.--In addition to amounts otherwise available, there 
is appropriated, out of any funds in the Treasury not otherwise 
appropriated, $200,000,000 for each of fiscal years 2023 through 2027 
to carry out this section.''.

            Subtitle B--Cannabis-Impaired Driving Prevention

SEC. 221. DEFINITIONS.

    In this subtitle:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the National Highway Traffic Safety 
        Administration.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (3) THC.--The term ``THC'' means tetrahydrocannabinol.

SEC. 222. CANNABIS-IMPAIRED DRIVING RESEARCH.

    (a) Cannabis-Impaired Driving Data.--
            (1) In general.--The Secretary shall collect and, as 
        appropriate, share with the Secretary of Health and Human 
        Services, data relating to cannabis-impaired driving, or a 
        combination of cannabis and another substance, including 
        through the collection of crash data specific to crashes 
        involving drivers with--
                    (A) THC in their system; or
                    (B) a combination of THC and another substance in 
                their system.
            (2) National roadside survey.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Administrator shall 
                initiate a National Roadside Survey to collect data on 
                drivers with THC in their system.
                    (B) Report.--Not later than 3 years after the date 
                of enactment of this Act, the Secretary shall submit to 
                the Committees on Commerce, Science, and 
                Transportation, Environment and Public Works, and 
                Health, Education, Labor, and Pensions of the Senate 
                and the Committee on Transportation and Infrastructure 
                of the House of Representatives a report summarizing 
                the data acquired, and conclusions drawn, from the 
                National Roadside Survey required under subparagraph 
                (A).
    (b) Research on Risks of Cannabis-Impaired Driving.--
            (1) Study required.--
                    (A) In general.--Not later than 3 years after the 
                date of enactment of this Act, the Secretary shall 
                carry out a study to evaluate and quantify the risks of 
                cannabis-impaired driving.
                    (B) Requirements.--The study required under 
                subparagraph (A) shall analyze--
                            (i) whether there is an increased 
                        likelihood of crashing a motor vehicle after 
                        recent cannabis use;
                            (ii) the effect of cannabis on driving 
                        behavior;
                            (iii) whether there is a correlation 
                        between THC level (as tested in oral fluids) 
                        and level of impairment;
                            (iv) whether the current Standard Field 
                        Sobriety Test developed by the National Highway 
                        Traffic Safety Administration accurately 
                        identifies cannabis impairment;
                            (v) whether driving behavior changes 
                        depending on frequency of cannabis use;
                            (vi) whether there are any potential 
                        increased risks associated with using cannabis 
                        together with another substance; and
                            (vii) any other data necessary to improve 
                        safe driving outcomes, as determined by the 
                        Secretary.
            (2) Report.--Not later than 3 years after the date of 
        enactment of this Act, and annually thereafter until the date 
        on which the study required under paragraph (1) is complete, 
        the Secretary shall submit to the Committees on Commerce, 
        Science, and Transportation, Environment and Public Works, and 
        Health, Education, Labor, and Pensions of the Senate and the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives a report summarizing the data acquired, and 
        conclusions drawn, from the study required under paragraph (1).

SEC. 223. DOT CANNABIS-IMPAIRED DRIVING PREVENTION PROGRAMS.

    (a) In General.--The Secretary shall research and implement data-
driven strategies to educate the public about the dangers of cannabis-
impaired driving, which shall include the following:
            (1) Cannabis-impaired driving use prevention best 
        practices.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Secretary shall 
                develop and issue best practices for States and 
                communities to prevent cannabis-impaired driving, 
                including impaired driving involving the use of 
                cannabis and another substance and practices targeting 
                drivers under the age of 21, in consultation with the 
                Director of the Centers for Disease Control and 
                Prevention, the Secretary of Health and Human Services, 
                and the heads of other Federal agencies as appropriate.
                    (B) Updates.--Not less frequently than biannually, 
                the Secretary shall update and reissue the best 
                practices required under subparagraph (A) as new 
                research and data becomes available.
            (2) Cannabis-impaired driving use prevention campaigns.--
        Not later than 2 years after the date of enactment of this Act, 
        the Secretary shall establish and carry out national campaigns 
        to prevent cannabis-impaired driving, including--
                    (A) cannabis-impaired driving involving the use of 
                cannabis and another substance; and
                    (B) cannabis-impaired driving among drivers under 
                the age of 21.
    (b) Campaign Evaluation.--Not less frequently than once every 3 
years, the Secretary shall evaluate the effectiveness of the campaigns 
required under subsection (a)(2) and the activities carried out by 
States using a grant awarded under section 409 of title 23, United 
States Code, by using a variety of factors, including--
            (1) collecting data, including behavioral data, and 
        comparing that data from before and after the campaigns;
            (2)(A) engaging with stakeholders that were involved in the 
        campaigns; and
            (B) analyzing feedback from those stakeholders on what the 
        stakeholders saw as strengths and weaknesses of the campaigns;
            (3) determining whether the campaigns accomplished the 
        objectives the Secretary set out to accomplish through analysis 
        of data relating to the campaigns; and
            (4) any other factors the Secretary determines appropriate 
        included in the document of the National Highway Traffic Safety 
        Administration entitled ``The Art of Appropriate Evaluation: A 
        Guide for Highway Safety Program Managers'' and dated December 
        2008 (or a successor document).
    (c) Report.--Not later than 6 months after the date on which the 
Secretary completes an evaluation conducted under subsection (b), the 
Secretary shall submit to the Committees on Commerce, Science, and 
Transportation, Environment and Public Works, and Health, Education, 
Labor, and Pensions of the Senate and the Committee on Transportation 
and Infrastructure of the House of Representatives a report that--
            (1) summarizes the data collected and provides the analysis 
        of the data from an evaluation conducted under subsection (b);
            (2) includes recommendations for future impaired driving 
        campaigns; and
            (3) includes any determinations that a national campaign or 
        an activity carried out by a State using a grant awarded under 
        section 409 of title 23, United States Code, is ineffective at 
        preventing cannabis-impaired driving.

SEC. 224. STATE CANNABIS-IMPAIRED DRIVING PREVENTION GRANT PROGRAM.

    (a) In General.--Chapter 4 of title 23, United States Code, is 
amended by inserting after section 408 the following:
``Sec. 409. State cannabis-impaired driving prevention grant program
    ``(a) Definitions.--In this section:
            ``(1) Cannabis.--The term `cannabis' has the meaning given 
        the term in subsection (ss) of section 201 of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 321).
            ``(2) Grant program.--The term `grant program' means the 
        grant program established under subsection (b).
            ``(3) THC.--The term `THC' has the meaning given the term 
        in section 221 of the Cannabis Administration and Opportunity 
        Act.
    ``(b) Establishment.--Not later than 1 year after the date of 
enactment of the Cannabis Administration and Opportunity Act, the 
Secretary, acting through the Administrator of the National Highway 
Traffic Safety Administration, shall establish a program to provide 
grants to States, in accordance with subsection (c), to implement 
programs to prevent impaired driving due to cannabis use.
    ``(c) Eligibility.--The Secretary may provide a grant under this 
section to any State that--
            ``(1) describes how the State will use the grant funds in 
        accordance with a highway safety program under section 402, 
        including how the State will implement the best practices 
        developed by the Secretary under section 223(a)(1) of the 
        Cannabis Administration and Opportunity Act; and
            ``(2) agrees to provide data and information, as determined 
        by the Secretary, to assist with the evaluation of the 
        effectiveness of the eligible activities described in 
        subsection (d).
    ``(d) Use of Funds.--A State may use a grant awarded under this 
section for the following activities:
            ``(1) Enforcement activities, including--
                    ``(A) to train public safety personnel to detect 
                impaired driving due to the use of cannabis or a 
                combination of cannabis and another substance;
                    ``(B) to increase the capacity of impaired driving 
                toxicology testing laboratories in the State to support 
                impaired driving investigations, including to purchase 
                equipment, hire staff, provide training, and improve 
                procedures, including to improve toxicology testing 
                standards to be consistent with the standards contained 
                in the document of the National Safety Council entitled 
                `Recommendations for Toxicological Investigation of 
                Drug-Impaired Driving and Motor Vehicle Fatalities-2021 
                Update' (or a successor document);
                    ``(C) to train for and implement impaired driving 
                assessment programs or other tools designed to increase 
                the probability of identifying the recidivism risk of 
                an individual convicted of driving under the influence 
                of cannabis, or a combination of cannabis and another 
                substance, and to determine the most effective mental 
                health or substance abuse treatment or sanction that 
                will reduce that risk;
                    ``(D) to develop and implement high-visibility 
                enforcement efforts relating to cannabis-impaired 
                driving; and
                    ``(E) for court support of high-visibility 
                enforcement efforts, to train and educate criminal 
                justice professionals (including law enforcement 
                personnel, prosecutors, judges, and probation officers) 
                to assist those professionals in--
                            ``(i) handling cannabis-impaired driving 
                        cases;
                            ``(ii) hiring traffic safety resource 
                        prosecutors;
                            ``(iii) hiring judicial outreach liaisons; 
                        and
                            ``(iv) establishing driving while 
                        intoxicated courts.
            ``(2) Data collection activities, including--
                    ``(A) to collect data relating to the use of 
                cannabis, drugs, or multiple substances by drivers, 
                including the prevalence of the use of those substances 
                among drivers arrested for impaired driving; and
                    ``(B) to increase drug testing and reporting for 
                all fatal crashes and serious injuries to better 
                understand the scope of cannabis-impaired driving, or a 
                combination of cannabis and another substance.
            ``(3) Education activities, including--
                    ``(A) to develop and carry out educational 
                campaigns to better educate the public about the harms 
                associated with cannabis-impaired driving, including 
                impaired driving associated with the use of cannabis 
                and another substance; and
                    ``(B) to participate in national campaigns 
                organized by the Secretary under section 223(a)(2) of 
                the Cannabis Administration and Opportunity Act.
    ``(e) Prohibition.--The Secretary may prohibit the use of grant 
funds for an activity described in subsection (d) if the Secretary 
determines that the activity is ineffective at preventing cannabis-
impaired driving after conducting an evaluation required under section 
223(b) of the Cannabis Administration and Opportunity Act.
    ``(f) Grant Amounts.--
            ``(1) In general.--The allocation of grant funds to a State 
        under this section for a fiscal year shall be in proportion to 
        the apportionment of funds a State receives under section 
        402(c)(2).
            ``(2) Requirement.--Not less than 10 percent of the funds 
        allocated to a State under this section shall be used to carry 
        out activities described in subsection (d)(1)(B).
    ``(g) Federal Share.--
            ``(1) In general.--For the first 3 fiscal years after the 
        date on which the grant program is established under subsection 
        (b), and each fiscal year thereafter for a State that meets the 
        condition described in paragraph (2)(B) during that fiscal 
        year, the Federal share of the costs of activities carried out 
        with a grant awarded under the grant program shall be 80 
        percent in any fiscal year in which the State is awarded a 
        grant.
            ``(2) Decreased federal share.--
                    ``(A) In general.--For any State that does not meet 
                the condition described in subparagraph (B), the 
                Federal share of the costs of activities carried out 
                with a grant awarded under the grant program shall be--
                            ``(i) 70 percent in the fourth fiscal year 
                        after the date on which the grant program is 
                        established under subsection (b);
                            ``(ii) 60 percent in the fifth fiscal year 
                        after that date; and
                            ``(iii) 50 percent in the sixth fiscal year 
                        after that date and each fiscal year 
                        thereafter.
                    ``(B) Condition.--The condition referred to in 
                paragraph (1) and subparagraph (A) is that the State 
                shall implement an open container law relating to 
                cannabis products.
    ``(h) Funding.--In addition to amounts otherwise available, there 
is appropriated, out of any money in the Treasury not otherwise 
appropriated, $45,000,000 for each of fiscal years 2023 through 2027 to 
carry out this section.''.
    (b) Clerical Amendment.--The analysis for chapter 4 of title 23, 
United States Code, is amended by inserting after the item relating to 
section 408 the following:

``409. State cannabis-impaired driving prevention grant program.''.

SEC. 225. NATIONAL CANNABIS IMPAIRMENT STANDARD.

    (a) In General.--Not later than 3 years after the date of enactment 
of this Act, and once every 2 years thereafter, the Secretary shall 
make a determination as to whether or not it is feasible to establish a 
national standard for determining impairment for cannabis-impaired 
driving.
    (b) Rulemaking Required.--If the Secretary determines that 
establishing a national standard relating to cannabis-impaired driving 
under subsection (a) is feasible, the Secretary shall, not later than 1 
year after that determination, promulgate regulations establishing a 
model marijuana impairment standard for States.

SEC. 226. FUNDING.

    In addition to amounts otherwise available, there is appropriated, 
out of any money in the Treasury not otherwise appropriated, 
$30,000,000 for each of fiscal years 2023 through 2027 to carry out 
sections 222 and 223.

             TITLE III--RESTORATIVE JUSTICE AND OPPORTUNITY

              Subtitle A--Opportunity Trust Fund Programs

SEC. 301. 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 Programs. 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 Director, nor may the Director hold any office in, or act in any 
capacity for, any organization, agency, or institution with which the 
Office makes any contract or other arrangement.
    ``(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 Cannabis 
        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;
                    ``(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; and
                    ``(C) hire at least 1 employee to serve as a Tribal 
                Relations Coordinator.
            ``(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.
    ``(d) Duties and Functions.--The Cannabis Justice Office is 
authorized to--
            ``(1) administer the Community Reinvestment Grant Program; 
        and
            ``(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. 
        10101 et seq.) is amended by adding at the end the following:

            ``PART PP--COMMUNITY REINVESTMENT GRANT PROGRAM

``SEC. 3061. AUTHORIZATION.

    ``The Director of the Cannabis Justice Office shall establish and 
carry out a grant program, known as the `Community Reinvestment Grant 
Program', 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.

``SEC. 3062. DEFINITIONS.

    ``In this part:
            ``(1) The term `cannabis conviction' means a conviction, or 
        adjudication of juvenile delinquency, for a cannabis offense 
        (as such term is defined in section 3 of the Cannabis 
        Administration and Opportunity Act).
            ``(2) The term `eligible entity' means a nonprofit 
        organization, as described in section 501(c)(3) of the Internal 
        Revenue Code and exempt from taxation under section 501(a) of 
        such Code, an Indian Tribe, a Tribal organization (as defined 
        in section 4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 5304)), or a Native Hawaiian-serving 
        entity that is representative of a community or a significant 
        segment of a community with experience in providing relevant 
        services to individuals adversely impacted by the War on Drugs 
        in that community.
            ``(3) The term `individual adversely impacted by the War on 
        Drugs' has the meaning given that term in section 301(b)(1) of 
        the Cannabis Administration and Opportunity Act.
            ``(4) The term `Native Hawaiian-serving entity' means--
                    ``(A) a Native Hawaiian organization (as defined in 
                section 6207 of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 7517));
                    ``(B) the Department of Hawaiian Home Lands; and
                    ``(C) the Office of Hawaiian Affairs.''.
    (b) Cannabis Opportunity Program; Equitable Licensing Grant 
Program.--
            (1) Definitions.--In this subsection:
                    (A) Administration; administrator.--The terms 
                ``Administration'' and ``Administrator'' mean the Small 
                Business Administration and the Administrator thereof, 
                respectively.
                    (B) Eligible indian tribe.--The term ``eligible 
                Indian Tribe'' means an Indian Tribe that has taken 
                steps--
                            (i) to create an automatic process, at no 
                        cost to an individual, to expunge, destroy, or 
                        seal criminal records for cannabis offenses; 
                        and
                            (ii) to eliminate violations or other 
                        penalties for individuals under parole, 
                        probation, pre-trial, or other Tribal criminal 
                        supervision for a cannabis offense.
                    (C) Eligible state or locality.--The term 
                ``eligible State or locality'' means a State or 
                locality that has taken steps--
                            (i) to create an automatic process, at no 
                        cost to an individual, to expunge, destroy, or 
                        seal criminal records for cannabis offenses; 
                        and
                            (ii) to eliminate violations or other 
                        penalties for individuals under parole, 
                        probation, pre-trial, or other State or local 
                        criminal supervision for a cannabis offense.
                    (D) Federal poverty level.--The term ``Federal 
                Poverty Level'' has the meaning given the term 
                ``poverty line'' in section 2110(c) of the Social 
                Security Act (42 U.S.C. 1397jj(c)).
                    (E) Individual adversely impacted by the war on 
                drugs.--The term ``individual adversely impacted by the 
                War on Drugs'' means an individual--
                            (i) who has had an income below 250 percent 
                        of the Federal Poverty Level for not fewer than 
                        5 of the past 10 years, as of the date on which 
                        the individual seeks to participate in a 
                        program established under this section or an 
                        amendment made by this section; and
                            (ii)(I) who has been arrested for, or 
                        convicted of, the sale, possession, use, 
                        manufacture, or cultivation of cannabis (except 
                        for a conviction involving distribution to a 
                        minor); or
                            (II) the parent, sibling, spouse, or child 
                        of whom has been arrested for, or convicted of, 
                        an offense described in subclause (I).
                    (F) 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 the term in section 
                8(d)(3)(C) of the Small Business Act (15 U.S.C. 
                637(d)(3)(C)).
                    (G) State.--The term ``State'' means--
                            (i) each of the several States;
                            (ii) the District of Columbia;
                            (iii) the Commonwealth of Puerto Rico; and
                            (iv) any territory or possession of the 
                        United States.
            (2) Cannabis restorative opportunity program.--
                    (A) In general.--The Administrator 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 socially and 
                economically disadvantaged individuals that operate--
                            (i) in eligible States or localities; or
                            (ii) in the jurisdiction of eligible Indian 
                        Tribes.
                    (B) Tribal set aside.--Of the amounts made 
                available to carry out subparagraph (A), 5 percent 
                shall be used 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 socially and economically disadvantaged 
                individuals that operate in the jurisdiction of an 
                eligible Indian Tribe.
            (3) Equitable licensing grant program.--The Administrator 
        shall establish and carry out a grant program, to be known as 
        the ``Equitable Licensing Grant Program'', to provide any 
        eligible State or locality or eligible Indian Tribe funds to 
        develop and implement equitable cannabis licensing programs 
        that minimize barriers to cannabis licensing and employment for 
        individuals adversely impacted by the War on Drugs, provided 
        that each grantee includes in the cannabis licensing program of 
        the grantee not less than 4 of the following elements:
                    (A) A waiver of cannabis license application fees 
                for an individual who--
                            (i) has had an income below 250 percent of 
                        the Federal Poverty Level for not fewer than 5 
                        of the 10 years preceding the date on which the 
                        individual submits an application; and
                            (ii) is a first-time applicant.
                    (B) A prohibition on the denial of a cannabis 
                license based on a conviction for a cannabis offense 
                that took place before the eligible State or locality 
                (or, in the case of a locality, the State in which the 
                locality is located) or eligible Indian Tribe legalized 
                the production, distribution, or possession of cannabis 
                or the date of enactment of this Act, as applicable.
                    (C) A prohibition on restrictions for licensing 
                relating to criminal convictions except with respect to 
                a criminal conviction related to owning and operating 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 
                under part 40 of title 49, Code of Federal Regulations, 
                or any successor regulations.
                    (E) The establishment of a cannabis licensing board 
                that--
                            (i) is reflective of the racial, ethnic, 
                        economic, and gender composition of the 
                        eligible State or locality or eligible Indian 
                        Tribe;
                            (ii) includes at least 1 representative 
                        from an eligible Indian Tribe that has 
                        jurisdiction within that eligible State or 
                        locality or that has Tribal jurisdiction, as 
                        applicable; and
                            (iii) shall serve as an oversight body of 
                        the equitable licensing program.
            (4) Study on programs.--
                    (A) GAO study.--Not later than 1 year after the 
                date of enactment of this Act, and annually thereafter, 
                the Comptroller General of the United States, in 
                consultation with the Administrator, shall conduct a 
                study on the individuals and entities receiving 
                assistance under the Cannabis Restorative Opportunity 
                and Equitable Licensing Programs established under 
                paragraphs (2) and (3), respectively, which shall 
                include--
                            (i) the types of assistance by State; and
                            (ii) a description of--
                                    (I) the efforts by the 
                                Administration to increase access to 
                                capital for cannabis-related small 
                                business concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals and small 
                                business concerns owned and controlled 
                                by individuals adversely impacted by 
                                the War on Drugs; and
                                    (II) the racial, ethnic, economic 
                                and gender composition of the eligible 
                                State or locality.
                    (B) Report.--The Comptroller General of the United 
                States shall submit a report on the results of each 
                study conducted under subparagraph (A) to--
                            (i) the Committee on Small Business and 
                        Entrepreneurship of the Senate;
                            (ii) the Committee on Small Business of the 
                        House of Representatives;
                            (iii) the Committee on the Judiciary of the 
                        Senate; and
                            (iv) the Committee on the Judiciary of the 
                        House of Representatives.
    (c) Appropriations.--
            (1) Community reinvestment grant program.--In addition to 
        amounts otherwise available, there is appropriated, out of any 
        funds in the Treasury not otherwise appropriated, 
        $1,650,000,000 for fiscal year 2023, to remain available until 
        September 30, 2027, to carry out the program under part PP of 
        title I of the Omnibus Crime Control and Safe Streets Act of 
        1968 (34 U.S.C. 10101 et seq.), as added by subsection (a)(2).
            (2) Cannabis restorative opportunity program.--In addition 
        to amounts otherwise available, there is appropriated, out of 
        any funds in the Treasury not otherwise appropriated, 
        $17,000,000 for fiscal year 2023, to remain available until 
        September 30, 2027, to carry out the program under subsection 
        (b)(2).
            (3) Equitable licensing grant program.--In addition to 
        amounts otherwise available, there is appropriated, out of any 
        funds in the Treasury not otherwise appropriated, $550,000,000 
        for fiscal year 2023, to remain available until September 30, 
        2027, to carry out the program under subsection (b)(3).

SEC. 302. COMPREHENSIVE OPIOID, STIMULANT, AND SUBSTANCE USE DISORDER 
              PROGRAM.

    (a) In General.--Part LL of title I of the Omnibus Crime Control 
and Safe Streets Act of 1968 (34 U.S.C. 10701 et seq.) is amended--
            (1) in the part heading, by striking ``opioid abuse grant'' 
        and inserting ``opioid, stimulant, and substance use 
        disorder'';
            (2) in section 3021(a) (34 U.S.C. 10701(a))--
                    (A) in paragraph (2), by striking ``opioid abuse'' 
                and inserting ``substance use disorder'';
                    (B) in paragraph (7), by striking ``opioid abuse'' 
                and inserting ``substance use disorder''; and
                    (C) in paragraph (10), by striking ``opioid'' and 
                inserting ``substance misuse and''; and
            (3) in section 3022(4) (34 U.S.C. 10702(4)), by striking 
        ``opioid abuse'' and inserting ``substance misuse and abuse''.
    (b) Appropriation.--In addition to amounts otherwise available, 
there is appropriated, out of any funds in the Treasury not otherwise 
appropriated, $200,000,000 for each of fiscal years 2023 through 2027 
to carry out the program under part LL of title I of the Omnibus Crime 
Control and Safe Streets Act of 1968, as amended by subsection (a) of 
this section.

SEC. 303. 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 amended by adding at the end the following:
    ``(gg) Cannabis-Related Legitimate Businesses and Service 
Providers.--In this Act:
            ``(1) Cannabis; cannabis product.--The terms `cannabis' and 
        `cannabis product' have the meanings given those terms in 
        section 201 of the Federal Food, Drug, and Cosmetic Act (21 
        U.S.C. 321).
            ``(2) Cannabis-related legitimate business.--The term 
        `cannabis-related legitimate 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 an 
                Indian tribe (as defined in section 8(a)(13)), a State, 
                or a political subdivision of a State, as determined by 
                that Indian tribe (as so defined), State, or political 
                subdivision; and
                    ``(B) participates in any business or organized 
                activity that involves handling cannabis or cannabis 
                products, including cultivating, producing, 
                manufacturing, selling, transporting, displaying, 
                dispensing, distributing, or purchasing cannabis or 
                cannabis products.
            ``(3) Cannabis-related service provider.--The term 
        `cannabis-related 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 ancillary service, 
                        relating to cannabis; and
                    ``(B) does not include a business, organization, or 
                other person that participates in any business or 
                organized activity that involves handling cannabis or 
                cannabis products, including cultivating, producing, 
                manufacturing, selling, transporting, displaying, 
                dispensing, distributing, or purchasing 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:
    ``(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 the concern is a cannabis-related 
legitimate business or cannabis-related service provider.''.
    (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:
    ``(p) Services for Cannabis-Related Legitimate Businesses and 
Service Providers.--A women's business center may not decline to 
provide services to an otherwise eligible small business concern under 
this section solely because the concern is a cannabis-related 
legitimate business or cannabis-related 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: ``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 the concern is a cannabis-related legitimate 
business or cannabis-related 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:
    ``(h) Services for Cannabis-Related Legitimate Businesses and 
Service Providers.--A Veteran Business Outreach Center may not decline 
to provide services to an otherwise eligible small business concern 
under this section solely because the concern is a cannabis-related 
legitimate business or cannabis-related service provider.''.
    (f) Community Navigators Pilot Program.--Section 5004 of the 
American Rescue Plan Act (Public Law 117-2; 135 Stat. 90) is amended by 
adding at the end the following:
    ``(e) Assistance to Cannabis-Related Legitimate Businesses and 
Service Providers.--The Administrator may not decline to make a grant 
to or enter into a contract or cooperative agreement with an entity 
under this section solely because the entity is a cannabis-related 
business or cannabis-related service provider (as defined in section 3 
of the Small Business Act (15 U.S.C. 632)).''.
    (g) 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:
            ``(38) Loans to cannabis-related legitimate businesses and 
        service providers.--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 subsection, to 
        an otherwise eligible small business concern solely because the 
        concern is a cannabis-related legitimate business or cannabis-
        related service provider.''.
    (h) 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:
            ``(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 the concern is a 
        cannabis-related legitimate business or cannabis-related 
        service provider.''.
    (i) Microloans.--Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended by adding at the end the following:
            ``(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 
        intermediary, or eligible nonprofit entity (as applicable) 
        solely because such borrower, intermediary, or nonprofit entity 
        is a cannabis-related legitimate business or cannabis-related 
        service provider.''.
    (j) 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:

``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 investment company solely because such small business 
investment company provides financing to an entity that is a cannabis-
related legitimate business or cannabis-related service provider (as 
defined in section 3 of the Small Business Act (15 U.S.C. 632)).
    ``(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 the small business 
concern is a cannabis-related legitimate business or cannabis-related 
service provider (as defined in section 3 of the Small Business Act (15 
U.S.C. 632)).''.
    (k) State or Local Development Company Loans.--Title V of the Small 
Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by 
adding at the end the following:

``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, Tribal, or local development 
company solely because such qualified State, Tribal, or local 
development company provides financing to an entity that is a cannabis-
related legitimate business or cannabis-related service provider (as 
defined in section 3 of the Small Business Act (15 U.S.C. 632)).
    ``(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 cannabis-
related service provider (as defined in section 3 of the Small Business 
Act (15 U.S.C. 632)).''.

SEC. 304. DEMOGRAPHIC DATA OF CANNABIS BUSINESS OWNERS AND EMPLOYEES.

    (a) In General.--The Bureau of Labor Statistics shall regularly 
compile, maintain, 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.--Notwithstanding any other provision in this 
section, the name, address, and other identifying information of an 
individual described in subsection (a) shall be kept confidential by 
the Bureau of Labor Statistics and not be made available to the public.
    (d) Definitions.--In this section:
            (1) Cannabis.--The term ``cannabis'' has the meaning given 
        such term in section 3.
            (2) Cannabis industry.--The term ``cannabis industry'' 
        means the industry, in any State, jurisdiction of an Indian 
        Tribe, or locality in the United States, in which an individual 
        or entity--
                    (A) conducts businesses pursuant to a permit issued 
                under section 302 of the Federal Alcohol Administration 
                Act, as added by section 511; or
                    (B) is otherwise licensed or permitted under the 
                law in such State, jurisdiction of such Indian Tribe, 
                or law in such locality to engage in a commercial 
                cannabis-related activity.
            (3) Owner.--The term ``owner'', with respect to a business, 
        means an individual or entity that is defined as an owner under 
        the State, Tribal, or local law where the individual or entity 
        is licensed or permitted to operate such business.
            (4) State.--The term ``State'' means--
                    (A) each of the several States;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any territory or possession of the United 
                States.

SEC. 305. PILOT PROGRAM.

    Section 7 of the Small Business Act (15 U.S.C. 636) is amended by 
adding at the end the following:
    ``(o) Pilot Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible intermediary.--The term `eligible 
                intermediary' means--
                            ``(i) a private, nonprofit entity, 
                        including a private, nonprofit community 
                        development corporation, a consortium of 
                        private, nonprofit organizations or nonprofit 
                        community development corporations, and an 
                        agency of or nonprofit entity established by a 
                        Native American Tribal Government, that--
                                    ``(I) seeks or has been awarded a 
                                loan from the Administrator to make 
                                loans to small business concerns under 
                                this subsection; and
                                    ``(II) has not less than 1 year of 
                                experience making loans to startup or 
                                socially and economically disadvantaged 
                                small business concerns;
                            ``(ii) a community development financial 
                        institution, as defined in section 103 of the 
                        Community Development Banking and Financial 
                        Institutions Act of 1994 (12 U.S.C. 4702); and
                            ``(iii) a minority depository institution, 
                        as defined in section 308 of the Financial 
                        Institutions Reform, Recovery, and Enforcement 
                        Act of 1989 (12 U.S.C. 1463 note).
                    ``(B) Individual adversely impacted by the war on 
                drugs.--The term `individual adversely impacted by the 
                War on Drugs' has the meaning given the term in section 
                301(b) of the Cannabis Administration and Opportunity 
                Act.
                    ``(C) Program.--The term `Program' means the small 
                business intermediary lending pilot program established 
                under paragraph (2).
                    ``(D) Socially and economically disadvantaged small 
                business concern.--The term `socially and economically 
                disadvantaged small business concern' has the meaning 
                given the term in section 8(a)(4)(A).
            ``(2) Establishment.--There is established a 10-year small 
        business intermediary lending pilot program under which the 
        Administrator may--
                    ``(A) make direct loans to eligible intermediaries 
                for the purpose of making loans to startup small 
                business concerns, small business concerns owned and 
                controlled by individuals adversely impacted by the War 
                on Drugs, or socially and economically disadvantaged 
                small business concerns; and
                    ``(B) in conjunction with the direct loans 
                described in subparagraph (A), make grants to eligible 
                intermediaries for the purpose of providing intensive 
                marketing, management, regulatory compliance, and 
                technical assistance to the small business concerns 
                described in subparagraph (A) that receive a loan under 
                this subsection.
            ``(3) Loans to eligible intermediaries.--
                    ``(A) Application.--Each eligible intermediary 
                desiring a loan under this subsection shall submit an 
                application to the Administrator that describes--
                            ``(i) the type of small business concerns 
                        to be assisted;
                            ``(ii) the size and range of loans to be 
                        made;
                            ``(iii) the interest rate and terms of 
                        loans to be made;
                            ``(iv) the geographic area to be served and 
                        the economic, poverty, and unemployment 
                        characteristics of the area;
                            ``(v) the status of small business concerns 
                        in the area to be served and an analysis of the 
                        availability of credit;
                            ``(vi) the marketing, management, 
                        regulatory compliance, and other technical 
                        assistance to be provided in connection with a 
                        loan made under this subsection; and
                            ``(vii) the qualifications of the applicant 
                        to carry out this subsection.
                    ``(B) Loan limits.--No loan may be made to an 
                eligible intermediary under this subsection if the 
                total amount outstanding and committed to the eligible 
                intermediary by the Administrator would, as a result of 
                such loan, exceed $10,000,000 during the participation 
                of the eligible intermediary in the Program.
                    ``(C) Loan duration.--Loans made by the 
                Administrator under this subsection shall be for a term 
                of 20 years.
                    ``(D) Applicable interest rate.--Loans made by the 
                Administrator to an eligible intermediary under the 
                Program shall bear an annual interest rate equal to the 
                interest rate described in subsection (m)(3)(F)(ii).
                    ``(E) Fees; collateral.--The Administrator may not 
                charge any fees or require collateral with respect to 
                any loan made to an eligible intermediary under this 
                subsection.
                    ``(F) Delayed payments.--The Administrator shall 
                not require the repayment of principal or interest on a 
                loan made to an eligible intermediary under the Program 
                during the 2-year period beginning on the date of the 
                initial disbursement of funds under that loan.
                    ``(G) Maximum participants and amounts.--During 
                each fiscal years, the Administrator may make loans 
                under the Program--
                            ``(i) to not more than 30 eligible 
                        intermediaries; and
                            ``(ii) in a total amount of not more than 
                        $300,000,000.
            ``(4) Loans to small business concerns.--
                    ``(A) In general.--The Administrator, through an 
                eligible intermediary, shall make loans to the small 
                business concerns described in paragraph (2) for 
                eligible uses under subsection (a).
                    ``(B) Maximum loan.--An eligible intermediary may 
                not make a loan under this subsection of more than 
                $200,000 to any 1 small business concern.
                    ``(C) Applicable interest rates.--
                            ``(i) In general.--Subject to clause (ii), 
                        a loan made by an eligible intermediary to a 
                        small business concern under this subsection--
                                    ``(I) may have a fixed or a 
                                variable interest rate; and
                                    ``(II) shall bear an interest rate 
                                specified by the eligible intermediary 
                                in the application of the eligible 
                                intermediary for a loan under this 
                                subsection.
                            ``(ii) Restrictions.--The Administrator may 
                        limit the interest rate or provide forbearance 
                        or deferment on repayment of a loan made by an 
                        eligible intermediary to a small business 
                        concern under this section.
                    ``(D) Review restrictions.--The Administrator may 
                not review individual loans made by an eligible 
                intermediary to a small business concern before 
                approval of the loan by the eligible intermediary.
            ``(5) Funding.--In addition to amounts otherwise available, 
        there is appropriated, out of any funds in the Treasury not 
        otherwise appropriated, for fiscal year 2023, to remain 
        available until September 30, 2027--
                    ``(A) $90,000,000 to carry out paragraph (2)(A); 
                and
                    ``(B) $41,000,000 to carry out paragraph (2)(B).
            ``(6) Termination.--The authority of the Administrator to 
        make loans under the Program shall terminate on the date that 
        is 10 years after the date of enactment of this subsection.
            ``(7) Sense of the senate.--It is the sense of the Senate 
        that the Administrator should issue regulations to ensure that 
        the processing and disbursement of loans under this subsection 
        prioritizes individuals adversely impacted by the War on 
        Drugs.''.

SEC. 306. ELIMINATING DISPARITIES AMONG CANNABIS-RELATED LEGITIMATE 
              BUSINESSES AND SERVICE PROVIDERS.

    (a) Definitions.--In this section--
            (1) the terms ``cannabis-related legitimate business'' and 
        ``cannabis-related service provider'' have the meanings given 
        those terms in section 3 of the Small Business Act (15 U.S.C. 
        632), as added by section 303; and
            (2) the term ``individual adversely impacted by the War on 
        Drugs'' has the meaning given the term in section 301(b).
    (b) Review.--The Administrator of the Small Business 
Administration--
            (1) shall review regulations, policies, and guidance of the 
        Administration to eliminate disparities for cannabis-related 
        legitimate businesses and cannabis-related service providers, 
        including by reducing regulatory burdens and increasing loan 
        eligibility for minority businesses and individuals adversely 
        impacted by the War on Drugs; and
            (2) in carrying out paragraph (1), may consider effective, 
        State-level systems designed to eliminate disparities for 
        cannabis-related legitimate businesses and cannabis-related 
        service providers.

                    Subtitle B--Restorative Justice

SEC. 311. RESENTENCING AND EXPUNGEMENT.

    (a) Expungement of 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 
        Federal cannabis offense entered by each Federal court in the 
        district 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 notify each individual whose arrest, conviction, 
        or adjudication of delinquency has been expunged pursuant to 
        this subsection that their arrest, conviction, or adjudication 
        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 
        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 
        required pursuant to this Act, the court shall expunge the 
        conviction or adjudication, 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 subsection. Such records may 
        only be made available by further order of the court.
            (5) Certification.--The court shall provide a certificate 
        to the individual receiving expungement for a prior Federal 
        cannabis offense. Any records of this certification shall be 
        sealed under paragraph (4).
    (b) 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;
            (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, conviction, or adjudication; 
        and
            (3) shall not be subject to any loss of Federal benefits 
        related to the expunged cannabis offense.
    (c) Exception.--An individual who at sentencing received an 
aggravating role adjustment pursuant to section 3B1.1(a) of the United 
States Sentencing Guidelines in relation to a Federal cannabis offense 
conviction shall not be eligible for expungement of that Federal 
cannabis offense conviction under this section, unless a Federal court 
conducting the sentencing review finds mitigating factors to warrant 
expungement, including the age of the individual at the time of the 
arrest, conviction, or adjudication, the role of the individual in the 
offense, or whether it was the first Federal cannabis offense committed 
by the individual.
    (d) 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, conviction, 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 May 1, 1971.
    (e) 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 information 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.
    (f) 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. 312. 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 Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1611(c))) 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, by that person.
    (b) Security Clearances.--A Federal agency may not grant, deny, or 
rescind a security clearance based solely on past or present cannabis 
use.

SEC. 313. NO ADVERSE EFFECT FOR PURPOSES OF THE IMMIGRATION LAWS.

    (a) In General.--For purposes of the immigration laws (as defined 
in section 101 of the Immigration and Nationality Act (8 U.S.C. 
1101(a))), cannabis may not be considered a controlled substance, and 
an alien may not be denied any benefit or protection 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 the effective date of this Act.
    (b) Amendments to the Immigration and Nationality Act.--The 
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended--
            (1) in section 101(f)(3) (8 U.S.C. 1101(f)(3)), by striking 
        ``(except as such paragraph relates to a single offense of 
        simple possession of 30 grams or less of marihuana)'';
            (2) in section 210(c)(2)(B)(ii)(III) (8 U.S.C. 
        1160(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'';
            (3) in section 212(h) (8 U.S.C. 1182(h)), by striking ``and 
        subparagraph (A)(i)(II) of such subsection insofar as it 
        relates to a single offense of simple possession of 30 grams or 
        less of marijuana'';
            (4) in section 237(a)(2)(B)(i) (8 U.S.C. (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'';
            (5) in section 240(c)(6) (8 U.S.C. 1229a(c)(6)), by 
        amending subparagraphs (A) and (B) to read as follows:
                    ``(A) Right to file.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a noncitizen may file 1 motion to 
                        reconsider a decision that the alien is 
                        removable from the United States.
                            ``(ii) Removal orders impacted by cannabis 
                        offenses.--In addition to the motion authorized 
                        under clause (i), a removal order shall be 
                        reconsidered upon a motion filed at any time by 
                        a noncitizen demonstrating that--
                                    ``(I) such order was based, in 
                                whole or in part, on an offense 
                                relating to cannabis that rendered the 
                                noncitizen deportable or inadmissible; 
                                or
                                    ``(II) an offense relating to 
                                cannabis--
                                            ``(aa) rendered the 
                                        noncitizen ineligible for a 
                                        benefit or relief under this 
                                        Act; or
                                            ``(bb) formed all or part 
                                        of the basis for the denial of 
                                        a benefit or relief under this 
                                        Act.
                    ``(B) Deadline.--A motion to reconsider under 
                subparagraph (A)(i) shall be filed not later than 30 
                days after the date of entry of the relevant final 
                administrative order of removal.'';
            (6) in section 244(c)(2)(A)(iii)(II) (8 U.S.C. 
        1254a(c)(2)(A)(iii)(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 marijuana'';
            (7) in section 245(h)(2)(B) (8 U.S.C. 1255(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 
        marijuana)''; and
            (8) in section 245A(d)(2)(B)(ii)(II) (8 U.S.C. 
        1255a(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. 314. PROVISION BY HEALTH CARE PROVIDERS OF THE DEPARTMENT OF 
              VETERANS AFFAIRS OF RECOMMENDATIONS AND OPINIONS 
              REGARDING VETERAN PARTICIPATION IN CANNABIS PROGRAMS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Veterans Affairs shall update all applicable 
regulations, guidance, memoranda, and policies of the Department of 
Veterans Affairs to authorize physicians and other health care 
providers employed by the Department--
            (1) to provide recommendations and opinions to veterans 
        regarding the participation of such veterans in cannabis 
        programs authorized under State or Federal law; and
            (2) to complete forms reflecting such recommendations and 
        opinions.

SEC. 315. PROVISION BY HEALTH CARE PROVIDERS OF INDIAN HEALTH PROGRAMS 
              OF RECOMMENDATIONS AND OPINIONS REGARDING PARTICIPATION 
              IN CANNABIS PROGRAMS.

    Not later than 180 days after the date of enactment of this Act, 
the Director of the Indian Health Service shall update all applicable 
regulations, guidance, memoranda, and policies of the Indian Health 
Service to authorize health care providers (as defined in section 
805(a) of the Indian Health Care Improvement Act (25 U.S.C. 1675(a)))--
            (1) to provide recommendations and opinions to patients 
        relating to the participation of those patients in State or 
        Tribal cannabis programs authorized under Federal or State law; 
        and
            (2) to complete forms reflecting those recommendations and 
        opinions.

           TITLE IV--TAXATION AND ESTABLISHMENT OF TRUST FUND

SEC. 401. CREATION OF OPPORTUNITY TRUST FUND AND IMPOSITION OF TAXES 
              WITH RESPECT TO CANNABIS PRODUCTS.

    (a) Cannabis Revenue and Regulation Act.--Subtitle E of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new chapter:

                    ``CHAPTER 56--CANNABIS PRODUCTS

                ``subchapter a. tax on cannabis products

          ``subchapter b. authorization and bond requirements

                       ``subchapter c. operations

                       ``subchapter d. 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 produced 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 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 sold during the first 2 
        calendar years in which this chapter becomes effective, 10 
        percent.
            ``(2) For any cannabis product sold during the calendar 
        year after the period described in paragraph (1), 15 percent.
            ``(3) For any cannabis product sold during the calendar 
        year after the period described in paragraph (2), 20 percent.
            ``(4) For any cannabis product sold during the calendar 
        year after the period described in paragraph (3), 25 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 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 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 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, 25 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 products.--For purposes of paragraph 
                (1)(B), the term `applicable rate per gram' means, with 
                respect to any cannabis product removed during any 
                calendar year, 25 percent of the prevailing 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; Lien for Tax.--
            ``(1) Time of attachment.--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.
            ``(2) Lien for tax.--
                    ``(A) In general.--The tax imposed by this section 
                shall be a first lien on the cannabis product from the 
                time the product is in existence as such until the tax 
                is paid.
                    ``(B) Exceptions.--The lien imposed by this 
                paragraph shall terminate in the case of products 
                produced at a cannabis production facility when such 
                products are--
                            ``(i) withdrawn from bonded premises on 
                        determination of tax,
                            ``(ii) withdrawn from bonded premises free 
                        of tax under provisions of section 5904(a), or
                            ``(iii) exported, deposited in a foreign-
                        trade zone, or deposited in a customs bonded 
                        warehouse.
    ``(e) Credit for Qualified Domestic Manufacturers.--
            ``(1) In general.--In the case of a qualified domestic 
        manufacturer of cannabis products, there shall be allowed as a 
        credit against any tax imposed by subsection (a) for the 
        calendar year an amount equal to 50 percent of the applicable 
        tax amount for such calendar year.
            ``(2) Applicable tax amount.--
                    ``(A) In general.--For purposes of this subsection, 
                the applicable tax amount shall be an amount equal to 
                the lesser of--
                            ``(i) the amount of any tax imposed by 
                        subsection (a) for the calendar year, or
                            ``(ii) the phase-in amount.
                    ``(B) Phase-in amount.--For purposes of 
                subparagraph (A), the phase-in amount shall be an 
                amount equal to--
                            ``(i) for the calendar year which includes 
                        the date on which this chapter first becomes 
                        effective, $2,000,000,
                            ``(ii) for the first calendar year 
                        subsequent to the calendar year described in 
                        clause (i), $2,000,000,
                            ``(iii) for the second calendar year 
                        subsequent to the calendar year described in 
                        clause (i), $3,000,000,
                            ``(iv) for the third calendar year 
                        subsequent to the calendar year described in 
                        clause (i), $4,000,000, and
                            ``(v) for any calendar years subsequent to 
                        the calendar year described in clause (iv), 
                        $5,000,000.
            ``(3) Credit not allowed for cannabis received in bond, 
        imported, smuggled, or illegally produced.--
                    ``(A) In general.--The credit under this subsection 
                shall not apply in the case of any cannabis which is--
                            ``(i) received in bond,
                            ``(ii) imported,
                            ``(iii) smuggled into the United States, or
                            ``(iv) produced other than as authorized by 
                        this chapter.
                    ``(B) Substantial processing exception.--
                Subparagraph (A)(i) shall not apply with respect to any 
                cannabis which is transferred in bond solely as 
                unprocessed plant matter if such cannabis is processed 
                by the taxpayer to produce an extract which contains no 
                plant matter.
                    ``(C) Contract packaging and labeling exception.--
                In the case of cannabis transferred in bond from the 
                person who produced such cannabis (hereinafter referred 
                to as `transferor') to another person for packaging or 
                labeling of such cannabis, and returned to the 
                transferor for removal, subparagraph (A)(i) shall not 
                apply, but only if the transferor retains title during 
                the entire period between such production and removal.
            ``(4) Single taxpayer.--Pursuant to rules issued by the 
        Secretary, 2 or more entities (whether or not under common 
        control) that produce any cannabis product under a license, 
        franchise, or other arrangement shall be treated as a single 
        taxpayer for purposes of the application of this subsection.
            ``(5) Time for determining and allowing credit.--The credit 
        allowable by paragraph (1)--
                    ``(A) shall be determined at the same time the tax 
                is determined under subsection (a) of this section, and
                    ``(B) shall be allowable at the time the tax 
                described in such subsection is payable as if the 
                credit allowable by this subsection constituted a 
                reduction in the rate of such tax.
            ``(6) Controlled groups.--Rules similar to rules of section 
        5051(a)(5) shall apply for purposes of this subsection.

``SEC. 5902. DEFINITIONS.

    ``(a) Definitions Related to Cannabis Products.--For purposes of 
this subtitle--
            ``(1) Cannabis; cannabis product.--The terms `cannabis' and 
        `cannabis product' have the same meaning given such terms under 
        subsection (ss) of section 201 of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 321).
            ``(2) Cannabis flower.--The term `cannabis flower' means 
        any cannabis plant product consisting of the flower of the 
        plant Cannabis sativa L., or any other part of such plant with 
        significant concentrations of tetrahydrocannabinol as 
        designated by the Secretary.
            ``(3) Cannabis plant product.--The term `cannabis plant 
        product' means any part of the plant Cannabis sativa L. which--
                    ``(A) is a cannabis product, and
                    ``(B) does not contain any cannabis that has been 
                processed, extracted, or concentrated (other than 
                harvesting, drying, curing, or trimming).
            ``(4) THC product.--The term `THC product' means any 
        cannabis product other than a cannabis plant product.
            ``(5) Tetrahydrocannabinol.--The term 
        `tetrahydrocannabinol' means total tetrahydrocannabinol 
        equivalent (as defined in paragraph (1)(B) of section 297A of 
        the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o)).
    ``(b) Definitions Related to Cannabis Enterprises.--For purposes 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, produces, compounds, converts, processes, 
                prepares, or packages any cannabis product.
                    ``(B) Personal use exception.--Subject to such 
                regulations as the Secretary shall prescribe, the term 
                `producer' shall not include any individual otherwise 
                described 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, provided--
                            ``(i) such individual is solely involved in 
                        the planting, cultivation, and growing of such 
                        cannabis,
                            ``(ii) the planting, cultivation, and 
                        growing of such cannabis occurs only in such 
                        individual's dwelling house, or in any shed, 
                        yard, or inclosure connected with such 
                        individual's dwelling house, and
                            ``(iii) the quantity of cannabis products 
                        planted, cultivated, and grown by such 
                        individual does not exceed the personal use 
                        production limitations determined by the 
                        Secretary as are necessary to protect the 
                        public and protect the revenue.
            ``(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 B 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 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 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 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 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 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 relieved 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 
                subsection of the payment of taxes determined at the 
                time of removal shall be conditioned upon the filing of 
                such additional bonds, and upon compliance with such 
                requirements, as the Secretary may prescribe for the 
                protection of the revenue. The Secretary may, by 
                regulations, require payment of tax on the basis of a 
                return prior to removal of the 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 imported 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 
                        article is entered into the customs territory 
                        of the United States.
                            ``(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 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 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 
                        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 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 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 
                obtained the authorization required under this chapter, 
                tax shall be due and payable immediately upon 
                production.
            ``(3) Taxpayers liable for taxes of not more than 
        $100,000.--
                    ``(A) In general.--
                            ``(i) More than $10,000 and not more than 
                        $100,000 in taxes.--Except as provided in 
                        clause (ii), in the case of any taxpayer who 
                        reasonably expects to be liable for not more 
                        than $100,000 in taxes imposed with respect to 
                        cannabis products under sections 5901 and 7652 
                        for the calendar year and who was liable for 
                        not more than $100,000 in such taxes in the 
                        preceding calendar year, the last day for the 
                        payment of tax on withdrawals, removals, and 
                        entries (and articles brought into the United 
                        States from Puerto Rico) shall be the 14th day 
                        after the last day of the calendar quarter 
                        during which the action giving rise to the 
                        imposition of such tax occurs.
                            ``(ii) Not more than $10,000 in taxes.--In 
                        the case of any taxpayer who reasonably expects 
                        to be liable for not more than $10,000 in taxes 
                        imposed with respect to cannabis products under 
                        sections 5901 and 7652 for the calendar year 
                        and who was liable for not more than $10,000 in 
                        such taxes in the preceding calendar year, the 
                        last day for the payment of tax on withdrawals, 
                        removals, and entries (and articles brought 
                        into the United States from Puerto Rico) shall 
                        be the 14th day after the last day of the 
                        calendar year.
                    ``(B) No application after limit exceeded.--
                            ``(i) Exceeds $100,000 limit.--Subparagraph 
                        (A)(i) shall not apply to any taxpayer for any 
                        portion of the calendar year following the 
                        first date on which the aggregate amount of tax 
                        due under sections 5901 and 7652 from such 
                        taxpayer during such calendar year exceeds 
                        $100,000, and any tax under such sections which 
                        has not been paid on such date shall be due on 
                        the 14th day after the last day of the 
                        semimonthly period in which such date occurs.
                            ``(ii) Exceeds $10,000 limit.--Subparagraph 
                        (A)(ii) shall not apply to any taxpayer for any 
                        portion of the calendar year following the 
                        first date on which the aggregate amount of tax 
                        due under sections 5901 and 7652 from such 
                        taxpayer during such calendar year exceeds 
                        $10,000, and any tax under such sections which 
                        has not been paid on such date shall be due on 
                        the 14th day after the last day of the calendar 
                        quarter in which such date occurs.
                    ``(C) Calendar quarter.--For purposes of this 
                paragraph, the term `calendar quarter' has the same 
                meaning given such term under section 5061(d)(4)(C).
            ``(4) 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.
    ``(c) Determination of Price.--
            ``(1) Constructive sale price.--
                    ``(A) In general.--If an article is sold directly 
                to consumers, sold on consignment, or sold (otherwise 
                than through an arm's length transaction) at less than 
                the fair market price, or if the price for which the 
                article sold cannot be determined, the tax under 
                section 5901(a) shall be--
                            ``(i) computed on the price for which such 
                        articles are sold, in the ordinary course of 
                        trade, by producers thereof, as determined by 
                        the Secretary, and
                            ``(ii) imposed on either person involved in 
                        such sale, 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, 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 imposed 
        by this chapter, whether or not stated as a separate charge. A 
        transportation, delivery, insurance, installation, or other 
        charge (not required by the preceding sentence to be included) 
        shall be excluded from the price only if the amount thereof is 
        established to the satisfaction of the Secretary in accordance 
        with regulations.
            ``(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 reason 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 accounts, and
                            ``(ii) the total tax which would be payable 
                        if such installment accounts had not been sold 
                        or otherwise disposed of (computed as provided 
                        in paragraph (1)), except that
                    ``(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 unpaid 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 internal 
revenue tax has not been paid or determined may, subject to such 
regulations as the Secretary shall prescribe, be withdrawn from the 
bonded premises of any producer in approved containers free of tax and 
not for resale for use--
            ``(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,
            ``(3) in any drug containing cannabis which is in 
        compliance with Federal and State law, or
            ``(4) 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 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 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 products imported or brought into the United States may be 
released from customs custody, without payment of tax, for delivery to 
a producer or export warehouse proprietor if such articles are not put 
up in packages, in accordance with such regulations and under such bond 
as the Secretary shall prescribe.
    ``(d) Cannabis Products Exported and Returned.--Cannabis products 
classifiable under item 9801.00.10 of the Harmonized Tariff Schedule of 
the United States (relating to duty on certain articles previously 
exported and returned), as in effect on the date of the enactment of 
the Cannabis Administration and Opportunity 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 
        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, casualty, 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, 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), 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 carrier, 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, credit, 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 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 
        regulations 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.

``SEC. 5906. DRAWBACK ON TAX FOR CERTAIN USES.

    ``(a) Eligibility.--Any person using cannabis on which the tax 
under this subchapter has been determined, in the manufacture or 
production of--
            ``(1) a drug containing cannabis which is in compliance 
        with Federal and State law, or
            ``(2) extracts with a tetrahydrocannabinol concentration of 
        not more than the allowable tetrahydrocannabinol equivalent 
        amount as described in paragraph (1)(C) of section 297A of the 
        Agricultural Marketing Act of 1946 (7 U.S.C. 1639o),
shall be eligible for drawback at the time when such cannabis is used 
in the manufacture of such products as provided for in this section.
    ``(b) Registration and Regulation.--Every person claiming drawback 
under this section shall--
            ``(1) register annually with the Secretary,
            ``(2) keep such books and records as may be necessary to 
        establish the fact that cannabis received by such person and on 
        which the tax has been determined were used in a manner 
        described in subsection (a), and
            ``(3) be subject to such rules and regulations in relation 
        thereto as the Secretary shall prescribe to secure the Treasury 
        against frauds.
    ``(c) Investigation of Claims.--For the purpose of ascertaining the 
correctness of any claim filed under this section, the Secretary is 
authorized to--
            ``(1) examine any books, papers, records, or memoranda 
        bearing upon the matters required to be alleged in the claim,
            ``(2) require the attendance of the person filing the claim 
        or of any officer or employee of such person or the attendance 
        of any other person having knowledge in the premises, and
            ``(3) take testimony with reference to any matter covered 
        by the claim and to administer oaths to any person giving such 
        testimony.
    ``(d) Drawback.--
            ``(1) Rate of drawback.--In the case of cannabis on which 
        the tax under this subchapter has been paid or determined, and 
        which has been used as provided in this section, a drawback 
        shall be allowed at a rate equal to 90 percent of the amount of 
        such tax which has been paid or determined.
            ``(2) Claims.--
                    ``(A) In general.--Subject to subparagraph (B), 
                such drawback shall be due and payable quarterly upon 
                filing of a proper claim with the Secretary.
                    ``(B) Exception.--
                            ``(i) Monthly basis.--In the case of any 
                        person entitled to such drawback who elects in 
                        writing to file monthly claims therefor, such 
                        drawback shall be due and payable monthly upon 
                        filing of a proper claim with the Secretary.
                            ``(ii) Bond requirement.--The Secretary may 
                        require persons electing to file monthly 
                        drawback claims under this subparagraph to file 
                        with the Secretary a bond or other security in 
                        such amount and with such conditions as the 
                        Secretary shall by regulations prescribe.
                            ``(iii) Revocation.--Any election under 
                        clause (i) may be revoked on filing of notice 
                        thereof with the Secretary.
                    ``(C) Additional requirement.--No claim under this 
                section shall be allowed unless filed with the 
                Secretary within the 6 months next succeeding the 
                quarter in which the cannabis covered by the claim was 
                used as provided in this section.
            ``(3) Allowance of drawback even where certain requirements 
        not met.--
                    ``(A) In general.--No claim for drawback under this 
                subsection shall be denied in the case of a failure to 
                comply with any requirement imposed under this section 
                or any rule or regulation issued thereunder upon the 
                claimant's establishing to the satisfaction of the 
                Secretary that cannabis on which the tax has been paid 
                or determined was in fact used in a manner described in 
                subsection (a).
                    ``(B) Penalty.--
                            ``(i) In general.--In the case of a failure 
                        to comply with any requirement imposed under 
                        this section or any rule or regulation issued 
                        thereunder, the claimant shall be liable for a 
                        penalty of $1,000 for each failure to comply 
                        unless it is shown that the failure to comply 
                        was due to reasonable cause.
                            ``(ii) Penalty may not exceed amount of 
                        claim.--The aggregate amount of the penalties 
                        imposed under clause (i) for failures described 
                        in subparagraph (A) in respect of any claim 
                        shall not exceed the amount of such claim 
                        (determined without regard to clause (i)).
                    ``(C) Penalty treated as tax.--The penalty imposed 
                by subparagraph (B) shall be assessed, collected, and 
                paid in the same manner as taxes, as provided in 
                section 6665(a).

          ``Subchapter B--Authorization and Bond Requirements

``Sec. 5911. Establishment and bond.
``Sec. 5912. Application.
``Sec. 5913. Cannabis production facility.

``SEC. 5911. ESTABLISHMENT AND BOND.

    ``(a) Prohibition on Production Outside of Bonded Cannabis 
Production Facility.--
            ``(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 be planted, cultivated, harvested, grown, 
        manufactured, produced, compounded, converted, processed, 
        prepared, or packaged in any building or on any premises.
            ``(2) Authorized producers only.--Any person establishing a 
        cannabis production facility shall, prior to commencing 
        operations--
                    ``(A) make application to the Secretary pursuant to 
                section 5912,
                    ``(B) file the bond required under subsection (b), 
                and
                    ``(C) receive authorization from the Secretary to 
                operate.
            ``(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 section 5902(b)(2)(B).
    ``(b) Bond.--
            ``(1) When required.--Every person, before commencing 
        business as a producer or an export warehouse proprietor, shall 
        file such bond, conditioned upon compliance with this chapter 
        and regulations issued thereunder, in such form, amount, and 
        manner as the Secretary shall by regulation prescribe. A new or 
        additional bond may be required whenever the Secretary 
        considers such action necessary for the protection of the 
        revenue.
            ``(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 to the principal on the bond, whenever 
        the Secretary determines that the bond no longer adequately 
        protects the revenue.
            ``(4) Removal of bond requirements.--
                    ``(A) In general.--During any period to which 
                subparagraph (A) of section 5903(b)(3) applies to a 
                taxpayer (determined after application of subparagraph 
                (B) thereof), such taxpayer shall not be required to 
                furnish any bond with respect to engaging in any 
                business as a producer or an export warehouse 
                proprietor.
                    ``(B) Satisfaction of bond requirements.--Any 
                taxpayer for any period described in subparagraph (A) 
                shall be treated as if sufficient bond has been 
                furnished for purposes of engaging in such business for 
                purposes of any requirements relating to bonds under 
                this chapter.

``SEC. 5912. APPLICATION.

    ``The application required pursuant to this section shall disclose, 
as regulations issued by the Secretary shall provide, such information 
as may be necessary to enable the Secretary to determine the location 
and extent of the premises, the type of operations to be conducted on 
such premises, and whether the operations will be in conformity with 
law and regulations, consistent with the requirements under section 302 
of the Federal Alcohol Administration Act.

``SEC. 5913. CANNABIS PRODUCTION FACILITY.

    ``A cannabis production facility, including noncontiguous portions 
thereof, shall be so located, constructed, and equipped, as to afford 
adequate protection to the revenue, as regulations prescribed by the 
Secretary may provide.

                       ``Subchapter C--Operations

``Sec. 5921. Inventories, reports, and records.
``Sec. 5922. Packaging and labeling.
``Sec. 5923. Purchase, receipt, possession, or sale of cannabis 
                            products after removal.
``Sec. 5924. Restrictions relating to marks, labels, notices, and 
                            packages.
``Sec. 5925. Restriction on importation of previously exported cannabis 
                            products.

``SEC. 5921. 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 prescribe, with 
        such inventories to be subject to verification by any internal 
        revenue 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 revenue officer during 
        business hours.

``SEC. 5922. PACKAGING AND LABELING.

    ``(a) Packages.--All cannabis products shall, before removal, be 
put up in such packages as the Secretary shall by regulation prescribe.
    ``(b) Marks, Labels, and Notices.--Every package of cannabis 
products shall, before removal, bear the marks, labels, and notices if 
any, that the Secretary by regulation 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 printed on any package 
of cannabis products.
    ``(d) Indecent or Immoral Material Prohibited.--No indecent or 
immoral picture, 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 warehouse proprietor or released in bond 
        from customs custody for delivery to a producer.

``SEC. 5923. PURCHASE, RECEIPT, POSSESSION, OR SALE OF CANNABIS 
              PRODUCTS AFTER REMOVAL.

    ``(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 5922 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, 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 5922 
        or which are put up in packages not bearing the marks, labels, 
        and notices, as required under such section.
    ``(b) Exception.--Paragraph (3) of subsection (a) shall not prevent 
the sale or delivery 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. 5924. 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 regulations thereunder, to appear on, or 
be affixed to, any package of cannabis products before such package is 
emptied.

``SEC. 5925. RESTRICTION ON IMPORTATION OF PREVIOUSLY EXPORTED CANNABIS 
              PRODUCTS.

    ``(a) Export Labeled Cannabis Products.--
            ``(1) In general.--Cannabis products produced in the United 
        States and labeled 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 transferred 
                or removed without tax in accordance with section 5904,
                    ``(B) may be imported or brought into the United 
                States, after their exportation, only if such articles 
                either are eligible to be released from customs custody 
                with the partial duty exemption provided in section 
                5904(d) or are returned to the original producer of 
                such article as provided in section 5904(c), and
                    ``(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 shall apply to articles labeled for 
        export even if the packaging or the appearance of such 
        packaging to the consumer of such articles has been modified or 
        altered by a person other than the original producer so as to 
        remove or conceal or attempt to remove or conceal (including by 
        the placement of a sticker over) any export label.
            ``(3) Exports include shipments to puerto rico.--For 
        purposes of this section, section 5904(d), section 5931, and 
        such other provisions as the Secretary may specify by 
        regulations, references to exportation shall be treated as 
        including a reference to shipment to the Commonwealth of Puerto 
        Rico.
    ``(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 section 5904(b).

                       ``Subchapter D--Penalties

``Sec. 5931. Civil penalties.
``Sec. 5932. Criminal penalties.

``SEC. 5931. CIVIL PENALTIES.

    ``(a) Omitting Things Required or Doing Things Forbidden.--Whoever 
willfully omits, neglects, or refuses to comply with any duty imposed 
upon them by this chapter, or to do, or cause to be done, any of the 
things required by this chapter, or does anything prohibited by this 
chapter, shall in addition to any other penalty provided in this title, 
be liable to a penalty of $10,000, to be recovered, with costs of suit, 
in a civil action, except where a penalty under subsection (b) or (c) 
or under section 6651 or 6653 or part II of subchapter A of chapter 68 
may be collected from such person by assessment.
    ``(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 exportation 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 imposed 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, vehicles, 
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 provided in section 6665(a).
    ``(e) Cross References.--For penalty for failure to make deposits 
or for overstatement of deposits, see section 6656.

``SEC. 5932. CRIMINAL PENALTIES.

    ``(a) Fraudulent Offenses.--Whoever, with intent to defraud the 
United States--
            ``(1) engages in business as a cannabis enterprise without 
        filing the application and obtaining the authorization 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 manner to evade or defeat the tax or the 
        payment thereof,
            ``(4) sells or otherwise transfers, contrary to this 
        chapter or regulations thereunder, 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.
    ``(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.''.
    (b) 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. 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 appropriated 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 subchapter A of chapter 56.
    ``(c) Transfers to General Fund.--The Secretary shall pay from time 
to time from the Trust Fund into the general fund of the Treasury 
amounts equivalent to the amounts appropriated under the Cannabis 
Administration and Opportunity Act.''.
    (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 delegate, shall--
            (1) conduct a study concerning the characteristics of the 
        cannabis industry, including--
                    (A) the number of persons operating cannabis 
                enterprises at each level of such industry,
                    (B) the volume of sales,
                    (C) the amount of tax collected each year,
                    (D) the areas of evasion, and
                    (E) the impact of disparate State taxes on 
                diversion and smuggling of cannabis products, and
            (2) submit to Congress recommendations to improve the 
        regulation of the industry 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 available a detailed 
description of the methodology which the Secretary anticipates using to 
determine the applicable rate per ounce and the applicable rate per 
gram which will apply for such calendar year under section 5901(c)(2) 
of such Code.
    (e) Drawback on Tax for Distilled Spirits Used in Production of 
Cannabis or Hemp.--Section 5111 of the Internal Revenue Code of 1986 is 
amended by striking ``or perfume'' and inserting ``perfume, cannabis 
products, or hemp-derived products''.
    (f) Interest of Internal Revenue Officer or Employee in Production 
of Cannabis Products.--Section 7214(b) of the Internal Revenue Code of 
1986 is amended--
            (1) in the heading, by striking ``Tobacco or Liquor 
        Production'' and inserting ``Production of Tobacco, Liquor, or 
        Cannabis Products'', and
            (2) by striking ``or cigarettes'' and inserting 
        ``cigarettes, or cannabis products (as defined in section 
        5902(a)(1))''.
    (g) Papers, Tubes, and Wrappers.--Section 5702 of the Internal 
Revenue Code of 1986 is amended--
            (1) in subsection (e)--
                    (A) by inserting ``or a cannabis product'' after 
                ``tobacco'', and
                    (B) by inserting ``(including for use as a cannabis 
                cigarette wrapper)'' after ``cigarette wrapper'',
            (2) in subsection (f), by inserting ``(including for use in 
        making cannabis cigarettes)'' after ``making cigarettes'', and
            (3) in subsection (o), by inserting ``(including for use in 
        making cannabis cigarettes)'' after ``wrapper thereof''.
    (h) 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 heading of subsection (a) of section 7608 of such 
        Code is amended by inserting ``Cannabis Products,'' after 
        ``Tobacco,''.
            (3) 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''.

            (4) 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. Opportunity Trust Fund.''.
    (i) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        removals, and applications under section 5912 of the Internal 
        Revenue Code of 1986 (as added by subsection (a)), after 180 
        days after the date of the enactment of this Act.
            (2) Other amendments.--The amendments made by subsections 
        (b), (c), (d), (f), (g), and (h) shall take effect on the date 
        of the enactment of this Act.

  TITLE V--PUBLIC HEALTH, CANNABIS ADMINISTRATION, AND TRADE PRACTICES

                       Subtitle A--Public Health

SEC. 501. FDA REGULATION OF CANNABIS.

    (a) In General.--The Federal Food, Drug, and Cosmetic Act (21 
U.S.C. 301 et seq.) is amended by adding at the end the following:

                    ``CHAPTER XI--CANNABIS PRODUCTS

``SEC. 1101. CENTER FOR CANNABIS PRODUCTS.

    ``Not later than 90 days after the date of enactment of the 
`Cannabis Administration and Opportunity Act', the Secretary shall 
establish within the Food and Drug Administration the Center for 
Cannabis Products, which shall report to the Commissioner of Food and 
Drugs in the same manner as the other agency centers within the Food 
and Drug Administration. The Center shall be responsible for the 
implementation of this chapter and related matters assigned by the 
Commissioner.

``SEC. 1102. ADULTERATED CANNABIS PRODUCTS.

    ``(a) In General.--A cannabis product shall be deemed to be 
adulterated if--
            ``(1) it consists in whole or in part of any filthy, 
        putrid, or decomposed substance, or is otherwise contaminated 
        by any added poisonous or added deleterious substance that may 
        render the product injurious to health;
            ``(2) it has been manufactured, prepared, processed, 
        packed, or held in insanitary conditions whereby it may have 
        been contaminated with filth, or whereby it may have been 
        rendered injurious to health;
            ``(3) it bears or contains any poisonous or deleterious 
        substance that may render it injurious to health;
            ``(4) its container is composed, in whole or in part, of 
        any poisonous or deleterious substance that may render the 
        contents injurious to health;
            ``(5) it bears or contains an unsafe color additive that is 
        unsafe within the meaning of section 721(a); or
            ``(6) the methods used in, or the facilities or controls 
        used for, its manufacture, preparing, processing, packing, or 
        storage are not in conformity with applicable requirements 
        under section 1105(c).
    ``(b) Exceptions to Certain Food Requirements for Foods Containing 
Cannabis.--Provided that an article that is a food (as defined in 
section 201(f)) and that is also a cannabis product (as defined in 
section 201(ss)(2)) otherwise complies with all applicable requirements 
for food under chapter IV and all applicable requirements for cannabis 
products under this chapter, such article shall not be deemed--
            ``(1) adulterated under section 402(a)(2)(C)(i) solely on 
        account of constituents made or derived from cannabis; or
            ``(2) a food to which has been added a drug for which 
        substantial clinical investigations have been instituted and 
        for which the existence of such investigations has been made 
        public for purposes of section 301(ll) solely on account of 
        constituents made or derived from cannabis.

``SEC. 1103. MISBRANDED CANNABIS PRODUCTS.

    ``A cannabis product shall be deemed to be misbranded--
            ``(1) if its labeling or advertising is false or misleading 
        in any particular;
            ``(2) unless it bears a label containing--
                    ``(A) a prominent statement that the product 
                contains cannabis;
                    ``(B) the name and place of business of its 
                manufacturer, packer, or distributor;
                    ``(C) an accurate statement of the quantity of its 
                contents in terms of weight, measure, or numerical 
                count;
                    ``(D) a statement of its form as specified in 
                regulations promulgated pursuant to section 1105(a);
                    ``(E) the amount of tetrahydrocannabinol in the 
                product, and if the product is packaged and labeled in 
                such a way as to suggest more than one serving, dose, 
                or the equivalent, the amount of tetrahydrocannabinol 
                in such serving, dose, or the equivalent;
                    ``(F) adequate directions for use, if deemed 
                necessary for the protection of the public health in 
                regulations promulgated pursuant to section 1105(a);
                    ``(G) adequate directions against use by children, 
                if deemed necessary for the protection of the public 
                health in regulations promulgated pursuant to section 
                1105(a); and
                    ``(H) such other information as the Secretary 
                determines, in regulations promulgated pursuant to 
                section 1105(a), to be necessary for the protection of 
                the public health;
            ``(3) if its label or labeling bears a statement describing 
        the role of a cannabis constituent intended to affect the 
        structure or any function of the body of humans or other 
        animals, unless--
                    ``(A) there is substantiation that such statement 
                is truthful and not misleading; and
                    ``(B) the statement contains, prominently displayed 
                and in boldface type, the following: `This statement 
                has not been evaluated by the Food and Drug 
                Administration. This product is not intended to 
                diagnose, treat, cure, or prevent any disease.';
            ``(4) if any word, statement, or other information required 
        by or under authority of this Act to appear on the label or 
        labeling is not prominently placed thereon with such 
        conspicuousness (as compared with other words, statements, 
        designs, or devices, in the labeling) and in such terms as to 
        render it likely to be read and understood by the ordinary 
        individual under customary conditions of purchase and use;
            ``(5) if it purports to be, or is represented as, a 
        cannabis product which is subject to a cannabis product 
        standard established under section 1106 unless such cannabis 
        product is in all respects in conformity with such standard;
            ``(6) if its sale, distribution, or label or labeling is 
        not in conformity with applicable requirements under 
        subsections (a) and (b) of section 1105;
            ``(7) if it was manufactured, prepared, propagated, 
        compounded, or processed in an establishment not duly 
        registered under section 1104 or if it was not included in a 
        list required by section 1104; or
            ``(8) if it is intended for consumption or application by 
        an individual under 21 years of age.

``SEC. 1104. ANNUAL REGISTRATION.

    ``(a) Registration by Owners and Operators.--On or before December 
31 of each year, every person who owns or operates any establishment in 
any State engaged in the manufacture, preparation, compounding, or 
processing of a cannabis product shall register with the Secretary the 
name, places of business, and all such establishments of that person.
    ``(b) Registration by New Owners and Operators.--Every person upon 
first engaging in the manufacture, preparation, compounding, or 
processing of a cannabis product in any establishment owned or operated 
in any State by that person shall immediately register with the 
Secretary that person's name, place of business, and such 
establishment.
    ``(c) Registration of Added Establishments.--Every person required 
to register under subsection (a) or (b) shall immediately register with 
the Secretary any additional establishment which that person owns or 
operates in the United States and in which that person begins the 
manufacture, preparation, compounding, or processing of a cannabis 
product.
    ``(d) Uniform Product Identification System.--The Secretary may by 
regulation prescribe a uniform system for the identification of 
cannabis products and may require that persons who are required to list 
such cannabis products under subsection (g) shall list such cannabis 
products in accordance with such system.
    ``(e) Public Access to Registration Information.--The Secretary 
shall make available for inspection any registration filed under this 
section.
    ``(f) Registration by Foreign Establishments.--Any establishment 
within a foreign country engaged in the manufacture, preparation, 
compounding, or processing of a cannabis product that is imported or 
offered for import into the United States, shall register under this 
section and shall include with the registration the name of the United 
States agent for the establishment.
    ``(g) Registration Information.--
            ``(1) Product list.--
                    ``(A) In general.--Every person who registers with 
                the Secretary under subsection (a), (b), or (c) shall, 
                at the time of registration under such subsection, file 
                with the Secretary--
                            ``(i) a list of all cannabis products which 
                        are being manufactured, prepared, compounded, 
                        or processed by that person for commercial 
                        distribution and which have not been included 
                        in any list of cannabis products filed by that 
                        person with the Secretary under this paragraph 
                        or paragraph (2) before such time of 
                        registration; and
                            ``(ii) such other information as the 
                        Secretary, in consultation with the Secretary 
                        of the Treasury and the Attorney General, may 
                        require, by regulation, to carry out the 
                        purposes of the Cannabis Administration and 
                        Opportunity Act, including the amendments made 
                        by such Act, including chapter 56 of subtitle E 
                        of the Internal Revenue Code of 1986.
                    ``(B) Form and manner of list.--The list under 
                subparagraph (A)(i) shall be prepared in such form and 
                manner as the Secretary may prescribe and shall be 
                accompanied by a copy of all consumer information and 
                other labeling for such cannabis product, a 
                representative sampling of advertisements for such 
                cannabis product, and, upon request by the Secretary, a 
                copy of all advertisements for a particular cannabis 
                product.
            ``(2) Report of any change in product list.--Each person 
        who registers with the Secretary under this section shall 
        report to the Secretary as follows:
                    ``(A) Prior to the introduction into commercial 
                distribution of a cannabis product that has not been 
                included in any list previously filed by the 
                registrant, a list containing such cannabis product.
                    ``(B) A notice of discontinuance of the 
                manufacture, preparation, compounding, or processing 
                for commercial distribution of a cannabis product 
                included in a list filed under subparagraph (A) or 
                paragraph (1), and the date of such discontinuance.
                    ``(C) A notice of resumption of the manufacture, 
                preparation, compounding, or processing for commercial 
                distribution of the cannabis product with respect to 
                which a notice of discontinuance was reported under 
                subparagraph (B).
                    ``(D) A list of each cannabis product included in a 
                notice filed under subparagraph (C) prior to the 
                resumption of the introduction into commercial 
                distribution of such cannabis product.
            ``(3) Publication.--The Secretary shall publish on the 
        website of the Food and Drug Administration every registration 
        and list filed pursuant to this section and the information 
        accompanying every list not later than 10 days after the 
        applicable date of filing.
            ``(4) Department of the treasury access.--The Secretary 
        shall establish a format and procedure for appropriate 
        Department of the Treasury officials to access the information 
        received by the Secretary under this subsection, in a prompt 
        and secure manner.

``SEC. 1105. GENERAL PROVISIONS FOR CONTROL OF CANNABIS PRODUCTS.

    ``(a) Restrictions on Sale and Distribution.--
            ``(1) Remote sales.--Not later than 2 years after the date 
        of enactment of the `Cannabis Administration and Opportunity 
        Act' the Secretary shall propose, and not later than 3 years 
        after such date of enactment the Secretary shall finalize, 
        regulations regarding the promotion, sale, and distribution of 
        cannabis products that occur through means other than a direct, 
        face-to-face exchange between a retailer and a consumer, in 
        order to prevent the sale and distribution of cannabis products 
        to individuals who have not attained the age of 21, including 
        requirements for age verification.
            ``(2) Preventing use of cannabis products in minors.--The 
        Secretary shall, by regulation, impose such restrictions on 
        advertising, promotion, and marketing of cannabis products as 
        the Secretary determines necessary and appropriate to prevent 
        the consumption or application of cannabis products by 
        individuals under 21 years of age. Such regulations shall 
        prohibit the advertising, promotion, and marketing of cannabis 
        products, whether directly or indirectly, to individuals under 
        21 years of age, and any other action that has the primary 
        purpose of initiating or increasing the use of cannabis 
        products in such individuals.
            ``(3) Other regulations.--In addition to the restrictions 
        under paragraphs (1) and (2), the Secretary may, by regulation, 
        impose other restrictions on the sale and distribution of 
        cannabis products, including restrictions on the access to, and 
        the advertising and promotion of, the cannabis product, if the 
        Secretary determines that such regulation would be appropriate 
        for the protection of the public health.
            ``(4) Good faith consultation with indian tribes.--In 
        issuing regulations under paragraphs (1), (2), and (3), the 
        Secretary shall conduct good faith, meaningful, and timely 
        consultations with Indian Tribes (as defined in section 3 of 
        the Cannabis Administration and Opportunity Act).
    ``(b) Labeling Statements.--The label and labeling of a cannabis 
product shall bear such appropriate statements of the restrictions 
required by a regulation under subsection (a) as the Secretary may in 
such regulation prescribe.
    ``(c) Good Manufacturing Practice Requirements.--The Secretary 
shall issue regulations requiring that the methods used in, and the 
facilities and controls used for, the manufacture, preparing, 
processing, packing, and holding of a cannabis product conform to 
current good manufacturing practice, including testing for pesticide 
chemical residues regardless of whether a tolerance for such chemical 
residues has been established.

``SEC. 1106. CANNABIS PRODUCT STANDARDS.

    ``(a) In General.--The Secretary shall, by regulation, adopt 
cannabis product standards that are appropriate for protection of the 
public health.
    ``(b) Content of Standards.--A cannabis product standard 
established under this section shall include provisions--
            ``(1) on the ingredients of the cannabis product, 
        including, where appropriate--
                    ``(A) cannabinoid yields of the product, which may 
                consider or address, as appropriate, different types of 
                cannabinoids and the interaction between the 
                constituents of the product;
                    ``(B) provisions respecting the construction, 
                components, ingredients, additives, constituents, 
                including smoke constituents, and properties of the 
                cannabis product, which may consider, as appropriate, 
                the interaction between constituents and components of 
                the cannabis product; and
                    ``(C) provisions for the reduction or elimination 
                of harmful constituents or components of the product, 
                including smoke constituents;
            ``(2) for the testing of the cannabis product;
            ``(3) requiring that the results of testing the cannabis 
        product show that the cannabis product is in conformity with 
        applicable standards;
            ``(4) for the measurement of the characteristics of the 
        cannabis product, where appropriate;
            ``(5) requiring that the sale and distribution of the 
        cannabis product be restricted but only to the extent that the 
        sale and distribution of a cannabis product may be restricted 
        under a regulation under this Act;
            ``(6) where appropriate, requiring the use and prescribing 
        the form and content of labeling for the proper use of the 
        cannabis product and any potential adverse effects of the 
        product; and
            ``(7) requiring cannabis products containing foreign-grown 
        cannabis to meet the same standards applicable to cannabis 
        products containing domestically grown cannabis.
    ``(c) Periodic Reevaluation of Standards.--The Secretary shall 
provide for periodic evaluation of cannabis product standards 
established under this section to determine whether such standards 
should be changed to reflect new medical, scientific, or other 
technological data.

``SEC. 1107. RECALL AUTHORITY.

    ``(a) In General.--If the Secretary finds that there is a 
reasonable probability that a cannabis product would cause serious, 
adverse health consequences or death, the Secretary shall issue an 
order requiring the appropriate person (including the manufacturers, 
importers, distributors, or retailers of the cannabis product) to 
immediately cease distribution of such cannabis product. The order 
shall provide the person subject to the order with an opportunity to 
appear and introduce testimony, to be held not later than 20 days after 
the date of the issuance of the order, on the actions required by the 
order and on whether the order should be amended to require a recall of 
such cannabis product. If, after providing an opportunity to appear and 
introduce testimony, the Secretary determines that inadequate grounds 
exist to support the actions required by the order, the Secretary shall 
vacate the order.
    ``(b) Amendment of Order To Require Recall.--
            ``(1) In general.--If, after providing an opportunity to 
        appear and introduce testimony under subsection (a), the 
        Secretary determines that the order should be amended to 
        include a recall of the cannabis product with respect to which 
        the order was issued, the Secretary shall, except as provided 
        in paragraph (2), amend the order to require a recall. The 
        Secretary shall specify a timetable in which the cannabis 
        product recall will occur and shall require periodic reports to 
        the Secretary describing the progress of the recall.
            ``(2) Notice.--An amended order under paragraph (1)--
                    ``(A) shall not include recall of a cannabis 
                product from individuals; and
                    ``(B) shall provide for notice to persons subject 
                to the risks associated with the use of such cannabis 
                product.
        In providing the notice required by subparagraph (B), the 
        Secretary may use the assistance of retailers and other persons 
        who distributed such cannabis product. If a significant number 
        of such persons cannot be identified, the Secretary shall 
        notify such persons pursuant to section 705(b).

``SEC. 1108. RECORDS AND REPORTS ON CANNABIS PRODUCTS.

    ``(a) In General.--Every person who is a cannabis product 
manufacturer or importer of a cannabis product shall establish and 
maintain such records, make such reports, and provide such information, 
as the Secretary may by regulation reasonably require to assure that 
such cannabis product is not adulterated or misbranded and to otherwise 
protect public health.
    ``(b) Reports of Removals and Corrections.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall by regulation require a cannabis product 
        manufacturer or importer of a cannabis product to report 
        promptly to the Secretary any corrective action taken or 
        removal from the market of a cannabis product undertaken by 
        such manufacturer or importer if the removal or correction was 
        undertaken--
                    ``(A) to reduce a risk to health posed by the 
                cannabis product; or
                    ``(B) to remedy a violation of this chapter caused 
                by the cannabis product which may present a risk to 
                health.
        A cannabis product manufacturer or importer of a cannabis 
        product who undertakes a corrective action or removal from the 
        market of a cannabis product that is not required to be 
        reported under this subsection shall keep a record of such 
        correction or removal.
            ``(2) Exception.--No report of the corrective action or 
        removal of a cannabis product may be required under paragraph 
        (1) if a report of the corrective action or removal is required 
        and has been submitted under subsection (a).

``SEC. 1109. PROHIBITION ON FLAVORED ELECTRONIC CANNABIS PRODUCT 
              DELIVERY SYSTEM.

    ``(a) In General.--Any electronic cannabis product delivery system 
shall not contain an artificial or natural flavor (other than cannabis) 
that is a characterizing flavor, including menthol, mint, mango, 
strawberry, grape, orange, clove, cinnamon, pineapple, vanilla, 
coconut, licorice, cocoa, chocolate, cherry, or coffee.
    ``(b) Definition.--For purposes of this section, the term 
`electronic cannabis product delivery system' means an electronic 
device that delivers a cannabis product via an aerosolized solution to 
the user inhaling from the device, and any component, liquid, part, or 
accessory of such a device, whether or not sold separately.

``SEC. 1110. PRESERVATION OF STATE, TRIBAL, AND LOCAL AUTHORITY.

    ``(a) In General.--Nothing in this chapter, or rules promulgated 
under this chapter, shall be construed to limit the authority of a 
Federal agency (including the Armed Forces), a State or political 
subdivision of a State, or the government of an Indian Tribe (as 
defined in section 3 of the Cannabis Administration and Opportunity 
Act) to enact, adopt, promulgate, and enforce any law, rule, 
regulation, or other measure with respect to cannabis products that is 
in addition to, or more stringent than, requirements established under 
this chapter, including a law, rule, regulation, or other measure 
relating to or prohibiting the manufacture, sale, distribution, 
possession, exposure to, access to, advertising and promotion of, or 
use of cannabis products by individuals of any age, information 
reporting to the State or Indian Tribe (as so defined), or measures 
relating to fire safety or environmental standards for cannabis 
products. No provision of this chapter shall limit or otherwise affect 
any State, Tribal, or local taxation of cannabis products.
    ``(b) Rule of Construction Regarding Product Liability.--No 
provision of this chapter relating to a cannabis product shall be 
construed to modify or otherwise affect any action or the liability of 
any person under the product liability law of any State or Indian Tribe 
(as so defined).''.

SEC. 502. AMENDMENTS TO THE FEDERAL FOOD, DRUG, AND COSMETIC ACT.

    (a) Definitions.--Section 201 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 321) is amended--
            (1) in paragraph (g)(1)(C), by striking ``(other than 
        food)'' and inserting ``(other than food or cannabis 
        products)'';
            (2) in paragraph (ff)(1), by striking ``(other than 
        tobacco)'' and inserting ``(other than a tobacco product or 
        cannabis product)'';
            (3) in paragraph (rr)(4), by inserting ``cannabis 
        product,'' after ``medical device''; and
            (4) by adding at the end the following:
    ``(ss)(1)(A) The term `cannabis' means--
            ``(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 preparation of such plant, its seeds or resin.
    ``(B) The term `cannabis' does not include--
            ``(i) hemp, as defined in section 297A of the Agricultural 
        Marketing 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 
        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.
    ``(2)(A) The term `cannabis product' means any product made or 
derived from cannabis that is intended for consumption or applied to 
the body of man or other animals, including any component of such 
product.
    ``(B) A `cannabis product' does not mean an article that is a drug 
within the meaning of paragraph (g)(1).
    ``(3) With respect to cannabis or a cannabis product, the term 
`manufacture' includes the planting, cultivation, growing, and 
harvesting of cannabis.''.
    (b) Prohibited Acts.--Section 301 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 331) is amended--
            (1) by inserting ``cannabis product,'' after ``tobacco 
        product,'' each place it appears in paragraphs (g) and (h);
            (2) in paragraph (j), by striking ``or 920(b)'' and 
        inserting ``920(b), or 1104'';
            (3) in paragraph (p)--
                    (A) by striking ``510 or 905'' and inserting ``510, 
                905, or 1104'';
                    (B) by striking ``or 905(j)'' and inserting 
                ``905(j), or 1104(g)''; and
                    (C) by striking ``or 905(i)(3)'' and inserting ``, 
                905(i)(3), or 1104(g)(2)'';
            (4) in paragraph (q)(2) by inserting ``, cannabis 
        product,'' after ``device'';
            (5) in paragraph (r), by inserting ``cannabis product,'' 
        after ``device,'' each place it appears; and
            (6) by adding at the end the following:
    ``(fff)(1) The sale or distribution of a cannabis product to any 
person younger than 21 years of age.
    ``(2) The sale or distribution, in any retail single transaction, 
of more than 10 ounces of any cannabis product.
    ``(3) The sale or distribution of an article that is a cannabis 
product and that contains alcohol, caffeine, or nicotine.
    ``(4) The failure of a manufacturer or distributor to notify the 
Attorney General and the Secretary of the Treasury of its knowledge of 
cannabis products used in illicit trade.
    ``(ggg)(1) The introduction or delivery for introduction into 
commerce of any cannabis product that is adulterated or misbranded.
    ``(2) The adulteration or misbranding of any cannabis product in 
commerce.
    ``(3) The receipt in commerce of any cannabis product that is 
adulterated or misbranded, and the delivery or proffered delivery 
thereof for pay or otherwise.
    ``(4) The alteration, mutilation, destruction, obliteration, or 
removal of the whole or any part of the labeling of, or the doing of 
any other act with respect to a cannabis product, if such act is done 
while such article is held for sale (whether or not the first sale) 
after shipment in commerce and results in such article being 
adulterated or misbranded.
    ``(hhh) The failure to comply with the requirements of section 
524C.''.
    (c) Seizure Authorities.--Section 304 of the Federal Food, Drug, 
and Cosmetic Act (21 U.S.C. 334) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``cannabis 
                product,'' after ``drug,''; and
                    (B) in paragraph (2), by inserting ``or cannabis 
                product'' after ``tobacco product'';
            (2) in subsection (d)(1), by inserting ``cannabis 
        product,'' after ``tobacco product,''; and
            (3) in subsection (g), by striking ``or tobacco product'' 
        each place it appears in paragraphs (1) and (2)(A) and 
        inserting ``, tobacco product, or cannabis product''.
    (d) Factory Inspection.--Section 704 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 374) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``cannabis products,'' after 
                ``tobacco products,'' each place it appears;
                    (B) by striking ``or tobacco products'' each place 
                it appears and inserting ``tobacco products, or 
                cannabis products''; and
                    (C) by striking ``and tobacco products'' and 
                inserting ``tobacco products, and cannabis products''; 
                and
            (2) in subsection (b)(1), by inserting ``cannabis 
        product,'' after ``tobacco product,''.
    (e) Publicity.--Section 705(b) of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 375(b)) is amended by inserting ``cannabis 
products,'' after ``tobacco products,''.
    (f) Presumption.--Section 709 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 379a) is amended by inserting ``cannabis 
product,'' after ``tobacco product,''.
    (g) Imports and Exports.--Section 801 of the Federal Food, Drug, 
and Cosmetic Act (21 U.S.C. 381) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``cannabis products,'' after 
                ``tobacco products,'';
                    (B) by striking ``or tobacco products'' each place 
                it appears and inserting ``, tobacco products, or 
                cannabis products''; and
                    (C) by striking ``or section 905(h)'' and inserting 
                ``, 905(h), or 1104''; and
            (2) in subsection (e), by striking ``tobacco product or'' 
        and inserting ``tobacco product, cannabis product, or''.

SEC. 503. EXPEDITED REVIEW.

    Subchapter A of chapter V of the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 351 et seq.) is amended by adding at the end the 
following:

``SEC. 524B. EXPEDITED REVIEW OF CERTAIN DRUGS CONTAINING CANNABIS.

    ``(a) Establishment of Program.--The Secretary shall establish a 
program to expedite the development and review of applications for 
drugs containing cannabis that are manufactured by a small business 
concerned owned and controlled by socially and economically 
disadvantaged individuals or Native entities that operate in the 
cannabis industry.
    ``(b) Request for Designation.--A sponsor of a drug containing 
cannabis that is manufactured by a small business concern owned and 
controlled by socially and economically disadvantaged individuals or 
Native entities that operate in the cannabis industry may request that 
the Secretary designate such drug for expedited review under this 
section. A request for designation may be made concurrently with, or at 
any time after, the submission of an application for the investigation 
of the drug under section 505(i) or section 351(a)(3) of the Public 
Health Service Act.
    ``(c) Actions.--The actions to expedite the development and review 
of an application designated for expedited review under this section 
may include, as appropriate--
            ``(1) holding meetings with the sponsor and the review team 
        throughout the development of the drug;
            ``(2) providing timely advice to, and interactive 
        communication with, the sponsor regarding the development of 
        the drug to ensure that the development program to gather the 
        nonclinical and clinical data necessary for approval is as 
        efficient as practicable; and
            ``(3) priority review, as described in the Manual of 
        Policies and Procedures of the Food and Drug Administration and 
        goals identified in the letters described in section 101(b) of 
        the Prescription Drug User Fee Amendments of 2017.
    ``(d) Expedited Review Guidance.--Not later than 1 year after the 
date of enactment of the Cannabis Administration and Opportunity Act, 
and after good faith, meaningful, and timely consultation with Native 
entities, the Secretary shall issue guidance on the implementation of 
this section. Such guidance shall--
            ``(1) set forth the process by which a person may seek a 
        designation under subsection (b); and
            ``(2) identify the criteria the Secretary will use in 
        evaluating a request for designation under this section.
    ``(e) Definitions.--In this section:
            ``(1) Drug containing cannabis.--The term `drug containing 
        cannabis' means any drug that contains any article made or 
        derived from cannabis.
            ``(2) Native entity.--The term `Native entity' means--
                    ``(A) an Indian Tribe (as defined in section 3 of 
                the Cannabis Administration and Opportunity Act);
                    ``(B) a Native Corporation (as defined in section 3 
                of the Alaska Native Claims Settlement Act (43 U.S.C. 
                1602)); and
                    ``(C) a Native Hawaiian-serving entity.
            ``(3) Native hawaiian-serving entity.--The term `Native 
        Hawaiian-serving entity' means--
                    ``(A) a Native Hawaiian organization (as defined in 
                section 6207 of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 7517));
                    ``(B) the Department of Hawaiian Home Lands; and
                    ``(C) the Office of Hawaiian Affairs.
            ``(4) 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 
        the term in section 8(d)(3)(C) of the Small Business Act.

``SEC. 524C. SECURITY REQUIREMENTS FOR DRUGS CONTAINING CANNABIS.

    ``(a) In General.--The sponsor of any application under section 505 
for a drug containing cannabis shall provide effective controls and 
procedures to guard against theft and diversion of such drug, which may 
include, if the Secretary determines necessary, a risk evaluation and 
mitigation strategy under section 505-1.
    ``(b) Standards.--The Secretary shall prescribe, by regulation, 
standards for controls and procedures for drugs described in subsection 
(a).
    ``(c) Definition.--For purposes of this section, the term `drug 
containing cannabis' means any drug that contains any article made or 
derived from cannabis.''.

SEC. 504. REGULATION OF CANNABIDIOL.

    (a) CBD as a Dietary Supplement.--Section 201(ff)(3)(B) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(ff)(3)(B)) is 
amended, in the matter preceding subclause (i), by inserting ``, except 
in the case of cannabidiol derived from hemp (as defined in section 
297A of the Agricultural Marketing Act of 1946)'' after ``include''.
    (b) Adulteration.--Section 402 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 342) is amended by adding at the end the 
following new subsection:
    ``(j)(1) If it is a dietary supplement that contains cannabidiol, 
unless--
            ``(A) such dietary supplement contains no more than an 
        amount of cannabidiol per recommended daily serving that the 
        Secretary may establish (and revise or repeal as appropriate), 
        subject to paragraph (2), through an interim final rule, 
        notwithstanding any requirement for notice and comment that may 
        otherwise apply under section 553 of title 5, United States 
        Code;
            ``(B) such dietary supplement is the subject of a 
        notification submitted to the Secretary in accordance with 
        section 413(a)(2); and
            ``(C) the labeling and packaging of such dietary supplement 
        conforms with any requirements that the Secretary establishes 
        regarding labeling or packaging of dietary supplements 
        containing cannabidiol (which may be promulgated (and revised 
        or repealed as appropriate) by the Secretary through an interim 
        final rule, notwithstanding any requirement for notice and 
        comment that may otherwise apply under section 553 of title 5, 
        United States Code).
    ``(2)(A) The amount of cannabidiol established in accordance with 
paragraph (1)(A)--
            ``(i) shall be a threshold above which the Secretary may 
        not accept new dietary ingredient notifications; and
            ``(ii) shall not be interpreted as a determination that 
        lower amounts of cannabidiol are safe.
    ``(B) The Secretary shall establish such a threshold based on such 
factors as the Secretary determines to be appropriate, which may 
include a consideration of whether the review of new dietary ingredient 
notifications for products containing higher levels of cannabidiol may 
be unduly burdensome.''.
    (c) New Dietary Ingredient.--Section 413(a)(1) of the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 350b(a)(1)) is amended by inserting 
``contains no cannabidiol and'' before ``contains only dietary 
ingredients''.
    (d) New Prohibited Act.--Section 301 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 331), as amended by section 502(b)(6), is 
further amended by adding at the end the following:
    ``(iii) The introduction or delivery for introduction into 
interstate commerce of any product labeled as a dietary supplement that 
fails to meet the definition of a dietary supplement under section 
201(ff).''.
    (e) New Import Exclusion.--Section 801(a) of the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 381(a)) is amended in paragraph (3) 
of the third sentence by striking ``section 301(ll)'' and inserting 
``paragraph (ll) or (iii) of section 301''.
    (f) New Seizure Authorities.--Section 304 of the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 334) is amended--
            (1) in subsection (a)(1), in the first sentence, by 
        inserting ``or any article which may not be introduced or 
        delivered for introduction into interstate commerce under 
        section 301(iii),'' before ``shall be liable''; and
            (2) in subsection (d)(1), in the first sentence, by 
        inserting ``, or any product otherwise introduced or delivered 
        for introduction into interstate commerce in violation of 
        section 301(iii) and condemned under this section,'' after 
        ``under this section''.
    (g) CBD as a Food Additive.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Health and Human 
        Services (referred to in this subsection as the ``Secretary'') 
        shall issue draft guidance describing criteria by which the 
        Secretary intends to evaluate the safety of cannabidiol as a 
        food additive in any food additive petition under section 409 
        of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 348). 
        The Secretary shall publish final guidance within 180 days of 
        the close of the public comment period on such draft guidance.
            (2) Advisory committee.--Before issuing draft guidance 
        under paragraph (1), the Secretary shall convene and consult an 
        advisory committee, which shall include experts qualified in 
        the subject matter.

SEC. 505. TRANSITION PERIODS.

    (a) Transition Period for Cannabis Products.--With respect to a 
cannabis product that was marketed in the United States within 30 days 
of the date of enactment of this Act pursuant to a State law permitting 
the marketing of such product, such product shall not be considered to 
be in violation of chapter XI of the Federal Food, Drug, and Cosmetic 
Act (as added by section 501) or section 301 of the Federal Food, Drug, 
and Cosmetic Act (21 U.S.C. 331), as amended by this title, as 
applicable, during the 18-month period following the date of enactment 
of this Act.
    (b) Submission of Applications for Previously Marketed Drugs 
Containing Cannabis.--
            (1) Transition period for drugs containing cannabis.--With 
        respect to a drug containing cannabis that was being marketed 
        in the United States within 30 days after the date of enactment 
        of this Act pursuant to a State law permitting cannabis for 
        medical use, such drug shall not be considered to be in 
        violation of chapter V or section 301 of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 331; 351 et seq.) during the 
        3-year period following the date of enactment of this Act.
            (2) Submission of applications.--
                    (A) In general.--As a condition for continuing to 
                market a drug described in paragraph (1) during the 3-
                year period specified in such paragraph, during the 18-
                month period beginning on the effective date of this 
                Act, the manufacturer shall submit a new drug 
                application under section 505(b) of the Federal Food, 
                Drug, and Cosmetic Act (21 U.S. C. 355(b)) for such 
                drug.
                    (B) Transition period.--Except as provided in 
                subparagraph (C), with respect to a drug containing 
                cannabis for which an application is submitted as 
                described in subparagraph (A), the manufacturer of such 
                product may continue to market such drug in the State 
                described in paragraph (1) during the 3-year period 
                beginning on the effective date of this Act.
                    (C) Exception.--If the Secretary of Health and 
                Human Services issues an order refusing to approve an 
                application under section 505(d) of the Federal Food, 
                Drug, and Cosmetic Act (21 U.S.C. 355(d)) for a drug 
                that contains cannabis, such drug shall not be eligible 
                for continued marketing under subparagraph (B).
            (3) End of transition period.--Beginning on the date that 
        is 3 years after the date of enactment of this Act the 
        Secretary may take enforcement action, as appropriate, for a 
        drug described in paragraph (1) (including such a drug that is 
        the subject of a pending application under section 505 of the 
        Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355)) found to 
        be in violation of chapter V or section 301 of the Federal 
        Food, Drug, and Cosmetic Act.
            (4) Rule of construction.--Nothing in this subsection shall 
        be construed to prohibit the marketing of a cannabis product 
        otherwise in compliance with relevant provisions of the Federal 
        Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.).
    (c) Definition.--For purposes of this section, the term ``drug 
containing cannabis'' means any drug that contains any article made or 
derived from cannabis.

SEC. 506. AMENDMENT TO THE POISON PREVENTION PACKAGING ACT.

    Section 2(2)(B) of the Poison Prevention Packaging Act of 1970 (15 
U.S.C. 1471(2)(B)) is amended by striking ``or cosmetic'' and inserting 
``cosmetic, or cannabis product,''.

SEC. 507. FUNDING FOR FDA.

    In addition to amounts otherwise available, there is appropriated, 
out of any funds in the Treasury not otherwise appropriated, 
$425,000,000 for each of fiscal years 2023 through 2027 to carry out 
this title and the amendments made by this title.

              Subtitle B--Federal Cannabis Administration

SEC. 511. FEDERAL CANNABIS ADMINISTRATION.

    (a) In General.--The Federal Alcohol Administration Act (27 U.S.C. 
201 et seq.) is amended by adding at the end the following:

                         ``TITLE III--CANNABIS

``SEC. 301. UNLAWFUL BUSINESSES WITHOUT CANNABIS PERMIT.

    ``(a) Import.--It shall be unlawful, except pursuant to a permit 
issued under this title by the Secretary--
            ``(1) to engage in the business of importing cannabis into 
        the United States; or
            ``(2) for any person so engaged to sell, offer or deliver 
        for sale, contract to sell, or ship, in interstate or foreign 
        commerce, directly or indirectly or through an affiliate, 
        cannabis so imported.
    ``(b) Manufacture and Sale.--It shall be unlawful, except pursuant 
to a permit issued under this title by the Secretary--
            ``(1) to engage in the business of cultivating, producing, 
        manufacturing, packaging, or warehousing cannabis; or
            ``(2) for any person so engaged to sell, offer or deliver 
        for sale, contract to sell, or ship, in interstate or foreign 
        commerce, directly or indirectly or through an affiliate, 
        cannabis so cultivated, produced, manufactured, packaged, or 
        warehoused.
    ``(c) Resale.--It shall be unlawful, except pursuant to a permit 
issued under this title by the Secretary--
            ``(1) to engage in the business of purchasing cannabis for 
        resale at wholesale; or
            ``(2) for any person so engaged to receive or to sell, 
        offer or deliver for sale, contract to sell, or ship, in 
        interstate or foreign commerce, directly or indirectly or 
        through an affiliate, cannabis so purchased.
    ``(d) Transition Rule.--Subject to section 302(e), in the case of a 
person who has filed a complete and accurate application for a permit 
under this section within 90 days of the date on which the Secretary 
has issued any necessary guidance and forms with respect to such 
applications, this section shall not apply to such person during the 
period prior to any determination under section 302 as to the 
entitlement of such person to such permit, provided that such person is 
in compliance with--
            ``(1) any applicable regulations under this title; and
            ``(2) payment of any taxes imposed under chapter 56 of the 
        Internal Revenue Code of 1986.

``SEC. 302. PROCEDURE FOR ISSUANCE OF CANNABIS PERMITS.

    ``(a) Entitlement to Permit.--
            ``(1) In general.--The Secretary shall issue a permit for 
        operations requiring a permit under section 301 unless the 
        Secretary finds that--
                    ``(A) the applicant (or if the applicant is a 
                corporation, any of its officers, directors, or 
                principal stockholders) has been convicted of a 
                disqualifying offense;
                    ``(B) the operations proposed to be conducted by 
                the applicant are in violation of the law of the State 
                in which they are to be conducted; or
                    ``(C) the applicant is not likely to maintain such 
                operations in conformity with Federal law.
            ``(2) Disqualifying offenses.--
                    ``(A) In general.--For the purposes of paragraph 
                (1), a disqualifying offense is any felony violation of 
                any provision of Federal or State criminal law relating 
                to cannabis or cannabis products (including the 
                taxation thereof), if the conviction occurred after the 
                date of enactment of the Cannabis Administration and 
                Opportunity Act and not later than 3 years before the 
                date of the application.
                    ``(B) Waiver pursuant to finding of mitigation or 
                rehabilitation and fitness for occupation.--
                Notwithstanding subparagraph (A), an offense shall not 
                be considered a disqualifying offense if, pursuant to a 
                submission of waiver request by the applicant to the 
                Secretary, the Secretary finds (following a review and 
                recommendation with respect to such waiver request by 
                the Cannabis Products Advisory Committee established 
                under section 602 of the Cannabis Administration and 
                Opportunity Act) that the applicant has established 
                sufficient mitigation or rehabilitation and fitness to 
                maintain cannabis operations in compliance with State 
                and Federal law by providing--
                            ``(i) evidence showing that--
                                    ``(I) the applicant has not been 
                                convicted of a crime that occurred 
                                after the date on which the offense 
                                with respect to which the waiver was 
                                requested occurred; and
                                    ``(II) the applicant has complied 
                                with all terms and conditions of 
                                probation or parole; or
                            ``(ii) any other evidence of mitigation and 
                        present fitness, including--
                                    ``(I) the circumstances relating to 
                                the offense, including mitigating 
                                circumstances or social conditions 
                                surrounding the commission of the 
                                offense;
                                    ``(II) the age of the applicant 
                                when the applicant committed the 
                                offense;
                                    ``(III) the period of time that has 
                                elapsed since the applicant committed 
                                the offense;
                                    ``(IV) additional evidence of 
                                educational, training, or work 
                                activities that the applicant has 
                                participated in, including during any 
                                period of incarceration;
                                    ``(V) letters of reference by 
                                persons who have been in contact with 
                                the applicant since the applicant was 
                                released from any correctional 
                                institution; and
                                    ``(VI) completion of, or active 
                                participation in, rehabilitative drug 
                                or alcohol treatment.
    ``(b) Refusal of Permit; Hearing.--If upon examination of any 
application for a permit the Secretary has reason to believe that the 
applicant is not entitled to such permit, the Secretary shall so notify 
the applicant and, upon request by the applicant, afford the applicant 
due notice and opportunity for hearing on the application. If the 
Secretary, after affording such notice and opportunity for hearing, 
still finds that the applicant is not entitled to a permit hereunder, 
the Secretary shall by order deny the application stating the findings 
which are the basis for the order.
    ``(c) Form of Application.--
            ``(1) Generally.--The Secretary shall--
                    ``(A) prescribe the manner and form of applications 
                for permits under this title (including the facts to be 
                set forth in the application);
                    ``(B) prescribe the form of such permits; and
                    ``(C) specify in any permit the authority conferred 
                by the permit and the conditions of that permit in 
                accordance with this title.
            ``(2) Separate types of applications and permits.--To the 
        extent deemed necessary by the Secretary for the efficient 
        administration of this title, the Secretary may require 
        separate applications and permits with respect to the various 
        classes of cannabis, and with respect to the various classes of 
        persons entitled to permits under this title.
            ``(3) Disclaimer.--The issuance of a permit under this 
        title does not deprive the United States of any remedy for a 
        violation of law.
    ``(d) Conditions.--
            ``(1) In general.--A permit under this title shall be 
        conditioned upon--
                    ``(A) compliance with all other Federal laws 
                relating to production and sale of cannabis, as well as 
                compliance with all State laws relating to said 
                activities in the State in which the permit applicant 
                resides and does business;
                    ``(B) payment to the Secretary of a reasonable 
                permit fee in an amount determined by the Secretary to 
                be sufficient over time to offset the cost of 
                implementing and overseeing all aspects of cannabis 
                regulation by the Federal Government; and
                    ``(C) compliance with--
                            ``(i) the labor laws described in paragraph 
                        (1) of subsection (j), as determined in 
                        accordance with paragraph (2) of such 
                        subsection; and
                            ``(ii) the reporting requirements of 
                        subsection (j)(3).
            ``(2) Waiver of permit fee.--Pursuant to regulations 
        prescribed by the Secretary, the permit fee described in 
        paragraph (1)(B) shall be waived in the case of an individual 
        who--
                    ``(A) has had an income below 250 percent of the 
                Federal Poverty Level for not fewer than 5 of the 10 
                years preceding the date on which the individual 
                submits an application for a permit under this title; 
                and
                    ``(B) is a first-time applicant.
    ``(e) Revocation, Suspension, and Annulment.--
            ``(1) Generally.--After due notice and opportunity for 
        hearing, the Secretary may order a permit under this title--
                    ``(A) revoked or suspended for such period as the 
                Secretary deems appropriate, if the Secretary finds 
                that the permittee has willfully violated any of the 
                conditions of the permit, but for a first violation of 
                the conditions the permit shall be subject to 
                suspension only;
                    ``(B) revoked if the Secretary finds that the 
                permittee has not engaged in the operations authorized 
                by the permit for a period of more than 2 years; or
                    ``(C) annulled if the Secretary finds that the 
                permit was procured through fraud, or 
                misrepresentation, or concealment of material fact.
            ``(2) Order to state basis for order.--The order shall 
        state the findings which are the basis for the order.
            ``(3) Joint development of enforcement regulations.--The 
        Secretary, in coordination with the Secretary of Labor and the 
        National Labor Relations Board, shall, through regulations, 
        establish criteria for making determinations under paragraph 
        (1).
            ``(4) Joint enforcement.--The Secretary of Labor and the 
        National Labor Relations Board shall provide to the Secretary 
        any assistance in carrying out this subsection as determined 
        necessary by the Secretary.
            ``(5) Certain violations under the national labor relations 
        act deemed willful.--A violation of the condition under 
        subsection (d)(1)(C) with respect to compliance with section 8 
        of the National Labor Relations Act (29 U.S.C. 158) as 
        described in subsection (j)(1)(C) shall be deemed willful for 
        purposes of paragraph (1)(A) if the National Labor Relations 
        Board finds that the permittee has engaged in--
                    ``(A) a discharge in violation of subsection (a) of 
                such section 8;
                    ``(B) a violation of such section 8 during the 
                period in which a representation election under such 
                Act is pending with respect to the employees of the 
                permittee; or
                    ``(C) a withdrawal of recognition of the recognized 
                or certified collective-bargaining representative under 
                such Act with respect to the employees of the permittee 
                that is in violation of such section 8.
    ``(f) Service of Orders.--Each order of the Secretary with respect 
to any denial of application, suspension, revocation, annulment, or 
other proceedings, shall be served--
            ``(1) in person by any officer or employee of the Secretary 
        designated by him or any internal revenue or customs officer 
        authorized by the Secretary for the purpose; or
            ``(2) by mailing the order by registered mail, addressed to 
        the applicant or respondent at his last known address in the 
        records of the Secretary.
    ``(g) Duration.--
            ``(1) General rule.--Except as otherwise provided in this 
        subsection, a permit issued under this title shall continue in 
        effect until suspended, revoked, or annulled as provided in 
        this title, or voluntarily surrendered.
            ``(2) Effect of transfer.--If operations under a permit 
        issued under this title are transferred, the permit 
        automatically terminates 30 days after the date of that 
        transfer, unless an application is made by the transferee 
        before the end of that period for a permit under this title for 
        those operations. If such an application is made, the 
        outstanding permit shall continue in effect until such 
        application is finally acted on by the Secretary.
            ``(3) Definition of transfer.--For the purposes of this 
        section, the term `transfer' means any change of ownership or 
        control, whether voluntary or by operation of law.
    ``(h) Judicial Review.--
            ``(1) In general.--A permittee or applicant for a permit 
        under this title may obtain judicial review under chapter 7 of 
        title 5, United States Code, of the denial of the application 
        of that applicant or, in the case of a permittee, the denial of 
        an application by the transferee of that permittee or the 
        suspension, revocation, or annulment of a permit with respect 
        to that permittee.
            ``(2) Labor law violations.--Notwithstanding paragraph (1), 
        with respect to a violation of the condition described in 
        subsection (d)(1)(C), the findings of fact and conclusions of 
        law by the Secretary, or, pursuant to subsection (e)(4), the 
        Secretary of Labor or the National Labor Relations Board, 
        concerning the appropriateness of suspending, revoking, or 
        annulling a permit as provided in this title, if supported by 
        substantial evidence on the whole, shall be conclusive.
    ``(i) Statute of Limitations.--
            ``(1) In general.--No proceeding for the suspension or 
        revocation of a permit for violation of any condition thereof 
        relating to compliance with Federal law shall be instituted by 
        the Secretary more than 18 months after conviction of the 
        violation of Federal law, or, if no conviction has been had, 
        more than 3 years after the violation occurred.
            ``(2) Compromise.--No permit shall be suspended or revoked 
        for a violation of any such condition thereof if the alleged 
        violation of Federal law has been compromised by any officer of 
        the Government authorized to compromise such violation.
    ``(j) Labor Laws.--
            ``(1) In general.--A labor law described in this paragraph 
        is any of the following:
                    ``(A) Any provision under the Fair Labor Standards 
                Act of 1938 (29 U.S.C. 201 et seq.), including any 
                regulations promulgated under such Act.
                    ``(B) Any provision under the Occupational Safety 
                and Health Act of 1970 (29 U.S.C. 651 et seq.), 
                including any standard promulgated under section 6 of 
                such Act (29 U.S.C. 655) or any other regulation 
                promulgated under such Act, or any standard or 
                regulation promulgated under an applicable State plan 
                approved by the Secretary of Labor under section 18 of 
                such Act (29 U.S.C. 667) that is identical or 
                equivalent to a standard promulgated under such section 
                6.
                    ``(C) Section 8 of the National Labor Relations Act 
                (29 U.S.C. 158), including any regulations promulgated 
                under such section.
            ``(2) Findings of labor law violations.--
                    ``(A) In general.--For purposes of subsection 
                (d)(1)(C)(i), a permittee shall be considered in 
                violation of a labor law described in paragraph (1) if 
                any of the following findings are made with respect to 
                the permittee:
                            ``(i) Fair labor standards act of 1938.--
                        With respect to a labor law described in 
                        paragraph (1)(A)--
                                    ``(I) a finding through an order or 
                                judgment of a Federal or State court 
                                that the permittee has violated any 
                                provision of the Fair Labor Standards 
                                Act of 1938, including any regulation 
                                promulgated under such Act; or
                                    ``(II) a finding through a final 
                                order of the Secretary of Labor that 
                                the permittee has violated any 
                                provision of such Act, including such a 
                                regulation.
                            ``(ii) Occupational safety and health act 
                        of 1970.--With respect to a labor law described 
                        in paragraph (1)(B)--
                                    ``(I) a finding through an order or 
                                judgment of a Federal or State court 
                                that the permittee has violated any 
                                provision of the Occupational Safety 
                                and Health Act of 1970, including any 
                                standard promulgated under section 6 of 
                                such Act or any other regulation 
                                promulgated under such Act, or any 
                                standard or regulation promulgated 
                                under an applicable State plan approved 
                                by the Secretary of Labor under section 
                                18 of such Act (29 U.S.C. 667) that is 
                                identical or equivalent to a standard 
                                promulgated under such section 6; or
                                    ``(II) a finding through a final 
                                order issued by the Occupational Safety 
                                and Health Review Commission, or an 
                                equivalent final decision of any State 
                                agency or administrative body, that the 
                                permittee has committed a violation 
                                described in subclause (I).
                            ``(iii) National labor relations act.--With 
                        respect to a labor law described in paragraph 
                        (1)(C), a finding by the National Labor 
                        Relations Board that the permittee has violated 
                        section 8 of the National Labor Relations Act 
                        (29 U.S.C. 158), including a regulation 
                        promulgated under such section, by committing 
                        an unfair labor practice under such section.
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                a permittee shall not be considered in violation of a 
                labor law described in paragraph (1) if a finding 
                described in subparagraph (A) with respect to the 
                permittee is through an order or judgment that has been 
                reversed, vacated, or rescinded.
            ``(3) Reporting requirements.--Not later than 30 days after 
        a finding described in paragraph (2) has been made with respect 
        to a permittee, the permittee shall notify the Secretary of 
        such finding in such form and manner as the Secretary, in 
        coordination with the Secretary of Labor and the National Labor 
        Relations Board, shall prescribe.

``SEC. 303. DELIVERY OF HEMP INADVERTENTLY EXCEEDING PERMISSIBLE 
              CONCENTRATION OF DELTA-9 TETRAHYRDROCANNABINOL.

    ``(a) In General.--The Secretary, in coordination with the 
Secretary of Agriculture and the Secretary of Health and Human 
Services, shall issue regulations to establish a process for the lawful 
delivery of hemp described in subsection (b) to a cannabis enterprise 
holding a permit issued under this title and authorized pursuant to 
section 5911 of the Internal Revenue Code of 1986.
    ``(b) Hemp Described.--Hemp referred to in subsection (a) is 
Cannabis sativa L. inadvertently produced with a total 
tetrahydrocannabinol equivalent concentration of more than the 
allowable tetrahydrocannabinol equivalent amount as described in 
paragraph (1)(C) of section 297A of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1639o)--
            ``(1) before September 30, 2021, by an institution of 
        higher education or State department of agriculture that grows 
        or cultivates industrial hemp under section 7606 of the 
        Agricultural Act of 2014 (7 U.S.C. 5940); or
            ``(2) by a producer of hemp under subtitle G of the 
        Agricultural Marketing Act of 1946 (7 U.S.C. 1639o et seq.).

``SEC. 304. UNFAIR COMPETITION AND UNLAWFUL PRACTICES.

    ``(a) In General.--It shall be unlawful for any person engaged in 
the business of importing cannabis into the United States, or 
cultivating, producing, manufacturing, packaging, or warehousing 
cannabis, or purchasing cannabis for resale at wholesale, directly or 
indirectly or through an affiliate, to do any of the following:
            ``(1) Exclusive outlet.--To require, by agreement or 
        otherwise, that any retailer engaged in the sale of cannabis 
        products, purchase any such products from such person to the 
        exclusion in whole or in part of cannabis sold or offered for 
        sale by other persons in interstate or foreign commerce, if 
        such requirement is made in the course of interstate or foreign 
        commerce, or if such person engages in such practice to such an 
        extent as substantially to restrain or prevent transactions in 
        interstate or foreign commerce in any such products, or if the 
        direct effect of such requirement is to prevent, deter, hinder, 
        or restrict other persons from selling or offering for sale any 
        such products to such retailer in interstate or foreign 
        commerce.
            ``(2) Tied house.--To induce through any of the following 
        means, any retailer, engaged in the sale of cannabis products 
        to purchase any such products from such person to the exclusion 
        in whole or in part of cannabis sold or offered for sale by 
        other persons in interstate or foreign commerce, if such 
        inducement is made in the course of interstate or foreign 
        commerce, or if such person engages in the practice of using 
        such means, or any of them, to such an extent as substantially 
        to restrain or prevent transactions in interstate or foreign 
        commerce in any such products, or if the direct effect of such 
        inducement is to prevent, deter, hinder, or restrict other 
        persons from selling or offering for sale any such products to 
        such retailer in interstate or foreign commerce:
                    ``(A) Acquiring or holding (after the expiration of 
                any existing license) any interest in any license with 
                respect to the premises of the retailer.
                    ``(B) Acquiring any interest in real or personal 
                property owned, occupied, or used by the retailer in 
                the conduct of his business.
                    ``(C) Furnishing, giving, renting, lending, or 
                selling to the retailer, any equipment, fixtures, 
                signs, supplies, money, services, or other thing of 
                value, subject to such exceptions as the Secretary 
                shall by regulation prescribe, having due regard for 
                public health, the quantity and value of articles 
                involved, established trade customs not contrary to the 
                public interest and the purposes of this subsection.
                    ``(D) Paying or crediting the retailer for any 
                advertising, display, or distribution service.
                    ``(E) Guaranteeing any loan or the repayment of any 
                financial obligation of the retailer.
                    ``(F) Extending to the retailer credit for a period 
                in excess of the credit period usual and customary to 
                the industry for the particular class of transactions, 
                as ascertained by the Secretary of the Treasury and 
                prescribed by regulations by him.
                    ``(G) Requiring the retailer to take and dispose of 
                a certain quota of any of such products.
            ``(3) Commercial bribery.--To induce through any of the 
        following means, any trade buyer engaged in the sale of 
        cannabis products, to purchase any such products from such 
        person to the exclusion in whole or in part of cannabis 
        products sold or offered for sale by other persons in 
        interstate or foreign commerce, if such inducement is made in 
        the course of interstate or foreign commerce, or if such person 
        engages in the practice of using such means, or any of them, to 
        such an extent as substantially to restrain or prevent 
        transactions in interstate or foreign commerce in any such 
        products, or if the direct effect of such inducement is to 
        prevent, deter, hinder, or restrict other persons from selling 
        or offering for sale any such products to such trade buyer in 
        interstate or foreign commerce:
                    ``(A) Commercial bribery.
                    ``(B) Offering or giving any bonus, premium, or 
                compensation to any officer, or employee, or 
                representative of the trade buyer.
            ``(4) Consignment sales.--To sell, offer for sale, or 
        contract to sell to any trade buyer engaged in the sale of 
        cannabis products, or for any such trade buyer to purchase, 
        offer to purchase, or contract to purchase, any such products 
        on consignment or under conditional sale or with the privilege 
        of return or on any basis otherwise than a bona fide sale, or 
        where any part of such transaction involves, directly or 
        indirectly, the acquisition by such person from the trade buyer 
        or his agreement to acquire from the trade buyer other cannabis 
        products, if such sale, purchase, offer, or contract is made in 
        the course of interstate or foreign commerce, or if such person 
        or trade buyer engages in such practice to such an extent as 
        substantially to restrain or prevent transactions in interstate 
        or foreign commerce in any such products or if the direct 
        effect of such sale, purchase, offer, or contract is to 
        prevent, deter, hinder, or restrict other persons from selling 
        or offering for sale any such products to such trade buyer in 
        interstate or foreign commerce.
            ``(5) Labeling.--To sell or ship or deliver for sale or 
        shipment, or otherwise introduce in interstate or foreign 
        commerce, or to receive therein, or to remove from customs 
        custody for consumption, any cannabis product in packages, 
        unless such products are packaged, and labeled in conformity 
        with such regulations, to be prescribed by the Secretary, with 
        respect to packaging, marking, branding, and labeling and size 
        of container--
                    ``(A) as will prohibit deception of the consumer 
                with respect to such products or the quantity thereof 
                and as will prohibit, irrespective of falsity, such 
                statements relating to manufacturing processes, 
                analyses, guarantees, and scientific or irrelevant 
                matters as the Secretary finds to be likely to mislead 
                the consumer;
                    ``(B) as will provide the consumer with information 
                described in section 1103 of the Federal Food, Drug, 
                and Cosmetic Act;
                    ``(C) as will require compliance with section 
                112(b) of the Cannabis Administration and Opportunity 
                Act;
                    ``(D) as will prohibit statements on the label that 
                are disparaging of a competitor's products or are 
                false, misleading, obscene, or indecent; and
                    ``(E) as will prevent deception of the consumer by 
                use of a trade or brand name that is the name of any 
                living individual of public prominence, or existing 
                private or public organization, or is a name that is in 
                simulation or is an abbreviation thereof, and as will 
                prevent the use of a graphic, pictorial, or emblematic 
                representation of any such individual or organization, 
                if the use of such name or representation is likely 
                falsely to lead the consumer to believe that the 
                product has been indorsed, made, or used by, or 
                produced for, or under the supervision of, or in 
                accordance with the specifications of, such individual 
                or organization.
            ``(6) Advertising.--To publish or disseminate or cause to 
        be published or disseminated by radio broadcast, or in any 
        newspaper, periodical or other publication or by any sign or 
        outdoor advertisement or any other printed or graphic matter, 
        any advertisement of cannabis, if such advertisement is in, or 
        is calculated to induce sales in, interstate or foreign 
        commerce, or is disseminated by mail, unless such advertisement 
        is in conformity with such regulations, to be prescribed by the 
        Secretary, as will--
                    ``(A) prevent deception of the consumer with 
                respect to the products advertised and as will 
                prohibit, irrespective of falsity, such statements 
                relating to manufacturing processes, analyses, 
                guaranties, and scientific or irrelevant matters as the 
                Secretary finds to be likely to mislead the consumer;
                    ``(B) provide the consumer with adequate 
                information as to the identity and quality of the 
                products advertised, the characteristics thereof, and 
                the person responsible for the advertisement;
                    ``(C) prohibit statements that are disparaging of a 
                competitor's products or are false, misleading, 
                obscene, or indecent; and
                    ``(D) prevent statements inconsistent with any 
                statement on the labeling of the products advertised.
    ``(b) Removal or Destruction of Label.--It shall be unlawful for 
any person to alter, mutilate, destroy, obliterate, or remove any mark, 
brand, or label upon cannabis products held for sale in interstate or 
foreign commerce or after shipment therein, except as authorized by 
Federal law or except pursuant to regulations of the Secretary 
authorizing relabeling for purposes of compliance with the requirements 
of this subsection or of State law.
    ``(c) Exceptions.--
            ``(1) Consignment sales.--Paragraph (4) of subsection (a) 
        shall not apply to transactions involving solely the bona fide 
        return of merchandise for ordinary and usual commercial reasons 
        arising after the merchandise has been sold.
            ``(2) Labeling.--Paragraph (5) of such subsection shall not 
        apply to the use of the name of any person engaged in business 
        as a manufacturer of cannabis products, nor to the use by any 
        person of a trade or brand name used by him or his predecessor 
        in interest prior to the date of enactment of the Cannabis 
        Administration and Opportunity Act.
            ``(3) Advertising.--Paragraph (6) of such subsection shall 
        not apply to the publisher of any newspaper, periodical, or 
        other publication, or radio broadcaster, unless such publisher 
        or radio broadcaster is engaged in the business of importing 
        cannabis into the United States, or cultivating, producing, 
        manufacturing, packaging, or warehousing cannabis, or 
        purchasing cannabis for resale at wholesale, directly or 
        indirectly or through an affiliate.
            ``(4) State law.--With respect to subsection (a)(2), 
        subparagraphs (A), (B), (C), (E), and (F) of such subsection 
        shall apply to transactions between a retailer or trade buyer 
        in any State and a producer, importer, or wholesaler of 
        cannabis products outside such State only to the extent that 
        the law of such State imposes similar requirements with respect 
        to similar transactions between a retailer or trade buyer in 
        such State and a producer, importer, or wholesaler of cannabis 
        products in such State, as the case may be.
            ``(5) Proprietary interest.--Pursuant to regulations or 
        other guidance promulgated by the Secretary, with respect to 
        subparagraphs (A) and (B) of subsection (a)(2), rules similar 
        to the rules of sections 6.27 and 6.33 of title 27, Code of 
        Federal Regulations (as in effect on the date of enactment of 
        this title), shall apply.

``SEC. 305. REMEDIES FOR VIOLATIONS.

    ``(a) Criminal Fine.--
            ``(1) Generally.--Whoever violates section 301 shall be 
        fined not more than $1,000.
            ``(2) Settlement in compromise.--The Secretary may decide 
        not to refer a violation of such section to the Attorney 
        General for prosecution but instead to collect a payment from 
        the violator of no more than $500 for that violation.
    ``(b) Civil Action for Relief.--The Attorney General may, in a 
civil action, obtain appropriate relief to prevent and restrain a 
violation of this title.

``SEC. 306. DEFINITIONS.

    ``In this title--
            ``(1) the term `cannabis' has the meaning given such term 
        in section 3 of the Cannabis Administration and Opportunity 
        Act;
            ``(2) the term `Secretary' means the Secretary of the 
        Treasury or the Secretary's delegate; and
            ``(3) the term `State' includes the District of Columbia, 
        Puerto Rico, and any territory or possession of the United 
        States.''.
    (b) Appropriations.--In addition to amounts otherwise available, 
there is appropriated, out of any funds in the Treasury not otherwise 
appropriated, for fiscal year 2023--
            (1) $15,000,000 to the Secretary of Labor for carrying out 
        the activities of the Secretary of Labor under section 302 of 
        the Federal Alcohol Administration Act, to remain available 
        until September 30, 2027; and
            (2) $10,000,000 to the National Labor Relations Board for 
        carrying out the activities of the National Labor Relations 
        Board under such section, to remain available until September 
        30, 2027.

SEC. 512. INCREASED FUNDING FOR THE ALCOHOL, TOBACCO, AND CANNABIS TAX 
              AND TRADE BUREAU.

    In addition to any other amounts otherwise available to the 
Alcohol, Tobacco, and Cannabis Tax and Trade Bureau, there is 
appropriated, out of any funds in the Treasury not otherwise 
appropriated, $100,000,000 for each of the fiscal years 2023 through 
2027 to carry out--
            (1) sections 102 and 112 of this Act,
            (2) chapter 56 of the Internal Revenue Code of 1986 (as 
        added by section 401 of this Act),
            (3) title III of the Federal Alcohol Administration Act (as 
        added by section 511 of this Act), and
            (4) section 1111 of the Homeland Security Act of 2002 (6 
        U.S.C. 531).

            TITLE VI--WORKPLACE HEALTH AND SAFETY PROVISIONS

SEC. 601. DEFINITIONS.

    In this title:
            (1) Cannabis industry.--The term ``cannabis industry'' 
        means any operation described in section 301 of the Federal 
        Alcohol Administration Act, as added by section 511.
            (2) Employee; employer.--The terms ``employee'' and 
        ``employer'' have the meanings given such terms in section 3 of 
        the Occupational Safety and Health Act of 1970 (29 U.S.C. 652).
            (3) Employer in the cannabis industry.--The term ``employer 
        in the cannabis industry'' means an employer engaged in any 
        operation requiring a permit under section 301 of the Federal 
        Alcohol Administration Act, as added by section 511.
            (4) Person.--The term ``person'' has the meaning given such 
        term in section 3 of the Occupational Safety and Health Act of 
        1970 (29 U.S.C. 652).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (6) Worker in the cannabis industry.--The term ``worker in 
        the cannabis industry'' means any individual performing work 
        for remuneration in the cannabis industry.

SEC. 602. FINDING REGARDING EMPLOYERS IN THE CANNABIS INDUSTRY.

    Congress finds that employers in the cannabis industry are required 
to comply with occupational safety and health standards issued under 
section 6 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 
655) and other regulations issued under such Act.

SEC. 603. CANNABIS AS A TARGETED TOPIC FOR SUSAN HARWOOD TRAINING GRANT 
              PROGRAM.

    The Secretary shall, in awarding Susan Harwood training grants 
under the Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
seq.) for the 2 fiscal years following the date of enactment of this 
Act, designate cannabis as a targeted topic for such grants.

SEC. 604. GUIDANCE ON RECOMMENDED PRACTICES.

    (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Assistant Secretary of Labor for Occupational Safety 
and Health and the Director of the National Institute for Occupational 
Safety and Health of the Department of Health and Human Services shall 
jointly issue guidance on recommended practices to protect workers in 
the cannabis industry.
    (b) Contents.--The guidance required under this section shall--
            (1) address the hazards workers in the cannabis industry 
        face throughout the life cycle of cannabis, including from 
        cultivation to sale and resale;
            (2) provide methods to protect cannabis workers; and
            (3) indicate specific occupational safety and health 
        standards promulgated under section 6 of the Occupational 
        Safety and Health Act of 1970 (29 U.S.C. 655), and any other 
        requirements through regulations issued under such Act, that 
        apply to the cannabis industry, including an indication of any 
        training requirement that employers in the cannabis industry 
        are subject to under any occupational safety and health 
        standard promulgated under such section 6 or under any other 
        regulations issued under such Act.

SEC. 605. WORKPLACE IMPACT OF CANNABIS LEGALIZATION.

    (a) Study.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Director of the National Institute 
        for Occupational Safety and Health shall conduct research on 
        the impact of the legalization of recreational cannabis by 
        States on the workplace, which may include--
                    (A) barriers for the Director and extramural 
                partners in conducting occupational safety and health 
                research with respect to cannabis, including to further 
                identify potential hazards, characterize exposures, and 
                evaluate associations between exposures and adverse 
                health effects;
                    (B) occupational health and safety training for 
                workers in the cannabis industry;
                    (C) the controls and actions taken by employers in 
                the cannabis industry to protect workers and the 
                effectiveness of such controls and actions;
                    (D) efficacy of cannabis for treating occupational 
                related injuries or illnesses; and
                    (E) other topics as determined relevant by the 
                Director.
            (2) Collaboration.--In conducting the research under 
        paragraph (1), the Director of the National Institute for 
        Occupational Safety and Health may collaborate with the 
        Occupational Safety and Health Administration, other relevant 
        Federal departments and agencies, and relevant public and 
        private stakeholders.
            (3) Appropriations.--In addition to amounts otherwise 
        available, there is appropriated, out of any funds in the 
        Treasury not otherwise appropriated, $2,000,000 for each of 
        fiscal years 2023 through 2025 to carry out paragraph (1).
    (b) Best Practices.--Not later than 2 years after the date of 
enactment of this Act, the Director of the National Institute for 
Occupational Safety and Health shall develop a set of recommendations 
outlining policies, best practices, and training recommendations for 
use by employers that are planning to transition or update workplace 
policies related to the use of recreational cannabis.

SEC. 606. GRANTS FOR COMMUNITY-BASED EDUCATION, OUTREACH, AND 
              ENFORCEMENT WITH RESPECT TO THE RIGHTS OF WORKERS IN THE 
              CANNABIS INDUSTRY.

    (a) Definition of Eligible Entity.--In this section, the term 
``eligible entity'' means--
            (1) a public or private nonprofit organization with 
        experience educating workers of their rights; or
            (2) a partnership of organizations described in paragraph 
        (1).
    (b) Program Authorized.--The Secretary shall award grants to 
eligible entities, on a competitive basis, to enable the eligible 
entities to carry out--
            (1) one or more activities to--
                    (A) educate workers in the cannabis industry of 
                their rights under Federal, State, and local civil 
                rights, labor, and employment laws, with a focus on 
                providing such education to such workers who are low-
                wage workers;
                    (B) educate persons hiring workers in the cannabis 
                industry regarding their obligations under such laws; 
                or
                    (C) connect and refer workers in the cannabis 
                industry to additional services, as appropriate and 
                available, to assist them in pursuing their rights 
                under such laws; or
            (2) any other activity the Secretary may reasonably 
        prescribe for the purposes of supporting workers in the 
        cannabis industry.
    (c) Applications.--
            (1) In general.--An eligible entity desiring a grant under 
        this section shall submit an application to the Secretary at 
        such time, in such manner, and containing such information as 
        the Secretary may require.
            (2) Partnership applications.--In the case of an eligible 
        entity that is a partnership, the eligible entity may 
        designate, in the application, a single organization in the 
        partnership as the lead entity for purposes of receiving and 
        disbursing funds.
            (3) Contents.--An application described in paragraph (1) 
        shall include--
                    (A) information on the training and education that 
                will be provided through the grant to workers in the 
                cannabis industry and persons hiring workers in the 
                cannabis industry;
                    (B) information on any geographic area targeted by 
                the activities supported through the grant; and
                    (C) the method by which the eligible entity will 
                measure the results of the activities supported through 
                the grant and a method by which the eligible entity 
                will assess the demographics of the workers served by 
                such activities.
    (d) Duration of Grants.--Each grant awarded under this section 
shall be for a period of not more than 3 years.
    (e) Amount of Grants.--Each grant awarded under this section shall 
be in an amount not to exceed $300,000.
    (f) Reporting Requirements.--Each eligible entity receiving a grant 
under this section shall, as determined by the Secretary, report to the 
Secretary the demographics of the workers served by the grant and the 
results of the activities supported by the grant as such demographics 
and results are measured by the methods described in the application 
submitted by the entity under subsection (c)(3)(C).
    (g) Appropriations.--In addition to amounts otherwise available, 
there is appropriated, out of any funds in the Treasury not otherwise 
appropriated, $15,000,000 for each of fiscal years 2023 through 2027 to 
carry out this section.

         TITLE VII--BANKING, HOUSING, AND COMMUNITY DEVELOPMENT

SEC. 701. PURPOSES; SENSE OF CONGRESS.

    (a) Purposes.--The purposes of this title are--
            (1) to reinvest in low- or moderate-income areas and 
        communities most affected by the war on drugs; and
            (2) encourage financial institutions to provide financial 
        services to small or minority-owned businesses in the 
        communities described in paragraph (1).
    (b) Sense of Congress.--It is the sense of Congress that each 
appropriate Federal financial supervisory agency should use its 
authority pursuant to section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2901) when examining financial institutions to 
encourage the institutions to help meet the credit needs of the local 
communities in which they are chartered, consistent with the safe and 
sound operation of such institutions, including those communities that 
are most affected by the war on drugs.

SEC. 702. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY REPORTS.

    Section 5318(g) of title 31, United States Code, is amended--
            (1) by redesignating paragraph (11) as paragraph (12); and
            (2) by inserting after paragraph (10) the following:
            ``(11) Requirements for cannabis-related legitimate 
        businesses.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Cannabis.--The term `cannabis' has 
                        the meaning given the term in section 3 of the 
                        Cannabis Administration and Opportunity Act.
                            ``(ii) Cannabis-related legitimate 
                        business; cannabis-related service provider.--
                        The terms `cannabis-related legitimate 
                        business' and `cannabis-related service 
                        provider' have the meanings given the terms in 
                        section 3 of the Small Business Act (15 U.S.C. 
                        632).
                            ``(iii) Financial service.--The term 
                        `financial service'--
                                    ``(I) means--
                                            ``(aa) a financial product 
                                        or service, as defined in 
                                        section 1002 of the Consumer 
                                        Financial Protection Act of 
                                        2010 (12 U.S.C. 5481), 
                                        regardless if the customer 
                                        receiving the product or 
                                        service is a consumer or 
                                        commercial entity; and
                                            ``(bb) a financial product 
                                        or service, or any combination 
                                        of products and services, 
                                        permitted to be provided by--

                                                    ``(AA) a national 
                                                bank or a financial 
                                                subsidiary pursuant to 
                                                the authority provided 
                                                under the paragraph 
                                                designated as the 
                                                `Seventh' of section 
                                                5136 of the Revised 
                                                Statutes (12 U.S.C. 24) 
                                                or section 5136A of the 
                                                Revised Statutes (12 
                                                U.S.C. 24a); or

                                                    ``(BB) a Federal 
                                                credit union, pursuant 
                                                to the authority 
                                                provided under the 
                                                Federal Credit Union 
                                                Act (12 U.S.C. 1751 et 
                                                seq.); and

                                    ``(II) includes--
                                            ``(aa) the business of 
                                        insurance;
                                            ``(bb) whether performed 
                                        directly or indirectly, the 
                                        authorizing, processing, 
                                        clearing, settling, billing, 
                                        transferring for deposit, 
                                        transmitting, delivering, 
                                        instructing to be delivered, 
                                        reconciling, collecting, or 
                                        otherwise effectuating or 
                                        facilitating of payments or 
                                        funds, if such payments or 
                                        funds are made or transferred 
                                        by any means, including by the 
                                        use of credit cards, debit 
                                        cards, other payment cards, or 
                                        other access devices, accounts, 
                                        original or substitute checks, 
                                        or electronic funds transfers;
                                            ``(cc) acting as a money 
                                        transmitting business that 
                                        directly or indirectly makes 
                                        use of a depository institution 
                                        in connection with effectuating 
                                        or facilitating a payment for a 
                                        cannabis-related legitimate 
                                        business or cannabis-related 
                                        service provider in compliance 
                                        with section 5330 of title 31, 
                                        United States Code, and any 
                                        applicable State law; and
                                            ``(dd) acting as an armored 
                                        car service for processing and 
                                        depositing with a depository 
                                        institution or a Federal 
                                        reserve bank with respect to 
                                        any monetary instruments, as 
                                        defined in section 1956(c) of 
                                        title 18, United States Code.
                    ``(B) Report.--With respect to a financial 
                institution or any director, officer, employee, or 
                agent of a financial institution that reports a 
                suspicious transaction pursuant to this subsection, if 
                the reason for the report relates to a cannabis-related 
                legitimate business or cannabis-related service 
                provider, the report shall comply with appropriate 
                guidance issued by the Financial Crimes Enforcement 
                Network. Not later than the end of the 180-day period 
                beginning on the date of enactment of this paragraph, 
                the Secretary shall update the February 14, 2014, 
                guidance titled `BSA Expectations Regarding Marijuana-
                Related Businesses' (FIN-2014-G001) or issue new 
                regulations to ensure that the guidance--
                            ``(i) is consistent with the purpose and 
                        intent of the Cannabis Administration and 
                        Opportunity Act;
                            ``(ii) addresses the deposit and movement 
                        of cash held by cannabis-legitimate business or 
                        cannabis-related service provider as of the 
                        date of enactment of this paragraph; and
                            ``(iii) does not significantly inhibit the 
                        provision of financial services to a cannabis-
                        related legitimate business or cannabis-related 
                        service provider in the United States.
                    ``(C) Purpose.--Any guidance or regulation required 
                under this section shall ensure that a financial 
                institution and any director, employee, officer, or 
                agent of a financial institution continues to report 
                suspicious activities related to cannabis-related 
                legitimate businesses and preserve the ability of the 
                Financial Crimes Enforcement Network and law 
                enforcement to prevent and combat illicit activity. The 
                Financial Crimes Enforcement Network shall promulgate 
                regulations or issue guidance as necessary on financial 
                institutions that provide financial services to 
                cannabis-related legitimate businesses, cannabis-
                related service providers, or employees, owners, or 
                operators, regarding obligations related to anti-money 
                laundering and under this subchapter, including 
                addressing the filing of suspicious activity reports 
                consistent with this section, customer due diligence 
                requirements, indirect relationships with cannabis-
                related legitimate businesses, and verification and 
                documentation requirements for financial institutions 
                intending to handle funds from cannabis-related 
                legitimate businesses to ensure such funds are clearly 
                linked with law, other lawful activity, and 
                regulations. The Secretary shall ensure that such 
                regulations are consistent with the purpose and intent 
                of the Cannabis Administration and Opportunity Act 
                while ensuring the Financial Crimes Enforcement Network 
                has sufficient resources to prevent and combat illicit 
                activity.''.

SEC. 703. GUIDANCE AND EXAMINATION PROCEDURES.

    Not later than 180 days after the date of enactment of this Act and 
consistent with the updated Financial Crimes Enforcement Network 
guidance described in paragraph (11)(B) of section 5318(g) of title 31, 
United States Code, as added by section 702 of this title, the 
Financial Institutions Examination Council, in consultation with the 
Financial Crimes Enforcement Network, shall develop uniform guidance 
and examination procedures for depository institutions that provide 
financial services to cannabis-related legitimate businesses and 
cannabis-related service providers.

SEC. 704. INVESTMENT IN COMMUNITIES.

    (a) CDFI Support.--In addition to funds otherwise available, there 
is appropriated out of any money in the Treasury not otherwise 
appropriated, $200,000,000 for each of fiscal years 2023 through 2027 
to the Community Development Financial Institutions Fund established 
under section 104 of the Community Development Banking and Financial 
Institutions Act of 1994 (12 U.S.C. 4703) to provide grants to expand 
lending and investment in low- or moderate-income areas, including 
those most affected by the war on drugs.
    (b) MDI Support.--In addition to funds otherwise available, there 
is appropriated out of any money in the Treasury not otherwise 
appropriated, $200,000,000 for each of fiscal years 2023 through 2027 
to the Emergency Capital Investment Fund established under section 
104A(b) of the Community Development Banking and Financial Institutions 
Act of 1994 (12 U.S.C. 4703a) to support the efforts of low- and 
moderate-income community financial institutions to, among other 
things, provide loans, grants, and forbearance for small businesses, 
minority-owned businesses, and consumers, especially in low-income and 
underserved communities, including those most affected by the war on 
drugs.
    (c) Grants To Address Housing and Community Development Needs of 
Individuals and Communities Adversely Impacted by the War on Drugs.--
            (1) Definitions.--In this subsection:
                    (A) Eligible activity.--The term ``eligible 
                activity''--
                            (i) means any eligible activity--
                                    (I) described in title I of the 
                                Housing and Community Development Act 
                                of 1974 (42 U.S.C. 5301 et seq.), the 
                                HOME Investment Partnerships Act (42 
                                U.S.C. 12721 et seq.), or section 415 
                                of the McKinney-Vento Homeless 
                                Assistance Act (42 U.S.C. 11374); and
                                    (II) that addresses the needs of 
                                individuals and census tracts in the 
                                provisions described in subclause (I); 
                                and
                            (ii) does not include administrative 
                        expenses that exceed 15 percent of the amount 
                        of a grant made under this subsection.
                    (B) Eligible grantee.--The term ``eligible 
                grantee'' includes any State, unit of local government, 
                or Indian tribe eligible to receive a grant under title 
                I of the Housing and Community Development Act of 1974 
                (42 U.S.C. 5301 et seq.).
                    (C) Individual adversely impacted by the war on 
                drugs.--The term ``individual adversely impacted by the 
                War on Drugs'' has the meaning given the term in 
                section 3062 as defined in section 3062 of the Omnibus 
                Crime Control and Safe Streets Act of 1968, as added by 
                section 301(a)(2) of this Act.
                    (D) State; unit of local government; indian 
                tribe.--The terms ``State'', ``unit of local 
                government'', and ``Indian Tribe'' have the meanings 
                given the terms in section 102 of the Housing and 
                Community Development Act of 1974 (42 U.S.C. 5302).
            (2) Grants.--In addition to funds otherwise available, 
        there is appropriated out of any money in the Treasury not 
        otherwise appropriated, $300,000,000 for each of fiscal years 
        2023 through 2027 to the Secretary of Housing and Urban 
        Development for grants to eligible grantees for eligible 
        activities to address the housing and community development 
        needs of--
                    (A) individuals adversely impacted by the War on 
                Drugs; and
                    (B) housing and community development needs of 
                census tracts where a disproportionate share of 
                residents are individuals described in subparagraph 
                (A), as determined by the Secretary.
            (3) Award criteria.--In awarding grants under this 
        subsection, the Secretary of Housing and Urban Development 
        shall establish criteria for awards as may be necessary to 
        demonstrate that the eligible grantee has the need, capacity, 
        and commitment to carry out a grant under this subsection to 
        address the needs described in paragraph (2).
            (4) Administration and technical assistance.--Of the amount 
        appropriated under this section, not more than 10 percent shall 
        be available to the Secretary of Housing and Urban Development 
        for administration, evaluation, and technical assistance 
        activities to carry out the grant program under this 
        subsection.

SEC. 705. FAIR HIRING IN BANKING.

    (a) Federal Deposit Insurance Act.--Section 19 of the Federal 
Deposit Insurance Act (12 U.S.C. 1829) is amended--
            (1) by inserting after subsection (b) the following:
    ``(c) Exceptions.--
            ``(1) Certain older offenses.--
                    ``(A) In general.--With respect to an individual, 
                subsection (a) shall not apply to an offense if--
                            ``(i) it has been 7 years or more since the 
                        offense occurred; or
                            ``(ii) the individual was incarcerated with 
                        respect to the offense and it has been 5 years 
                        or more since the individual was released from 
                        incarceration.
                    ``(B) Offenses committed by individuals 21 or 
                younger.--For individuals who committed an offense when 
                they were 21 years of age or younger, subsection (a) 
                shall not apply to the offense if it has been more than 
                30 months since the sentencing occurred.
                    ``(C) Limitation.--This paragraph shall not apply 
                to an offense described under subsection (a)(2).
            ``(2) Expungement and sealing.--With respect to an 
        individual, subsection (a) shall not apply to an offense if--
                    ``(A) there is an order of expungement, sealing, or 
                dismissal that has been issued in regard to the 
                conviction in connection with such offense; and
                    ``(B) it is intended by the language in the order 
                itself, or in the legislative provisions under which 
                the order was issued, that the conviction shall be 
                destroyed or sealed from the individual's State or 
                Federal record, even if exceptions allow the record to 
                be considered for certain character and fitness 
                evaluation purposes.
            ``(3) De minimis exemption.--
                    ``(A) In general.--Subsection (a) shall not apply 
                to such de minimis offenses as the Corporation 
                determines, by rule.
                    ``(B) Confinement criteria.--In issuing rules under 
                subparagraph (A), the Corporation shall include a 
                requirement that the offense was punishable by a term 
                of three years or less confined in a correctional 
                facility, where such confinement--
                            ``(i) is calculated based on the time an 
                        individual spent incarcerated as a punishment 
                        or a sanction, not as pretrial detention; and
                            ``(ii) does not include probation or parole 
                        where an individual was restricted to a 
                        particular jurisdiction or was required to 
                        report occasionally to an individual or a 
                        specific location.
                    ``(C) Bad check criteria.--In setting the criteria 
                for de minimis offenses under subparagraph (A), if the 
                Corporation establishes criteria with respect to 
                insufficient funds checks, the Corporation shall 
                require that the aggregate total face value of all 
                insufficient funds checks across all convictions or 
                program entries related to insufficient funds checks is 
                $2,000 or less.
                    ``(D) Designated lesser offenses.--Subsection (a) 
                shall not apply to certain lesser offenses (including 
                the use of a fake ID, shoplifting, trespass, fare 
                evasion, driving with an expired license or tag, and 
                such other low-risk offenses as the Corporation may 
                designate) if 1 year or more has passed since the 
                applicable conviction or program entry.''; and
            (2) by adding at the end the following:
    ``(f) Consent Applications.--
            ``(1) In general.--The Corporation shall accept consent 
        applications from an individual and from an insured depository 
        institution or depository institution holding company on behalf 
        of an individual that are filed separately or contemporaneously 
        with a regional office of the Corporation.
            ``(2) Sponsored applications filed with regional offices.--
        Consent applications filed at a regional office of the 
        Corporation by an insured depository institution or depository 
        institution holding company on behalf of an individual--
                    ``(A) shall be reviewed by such office;
                    ``(B) may be approved or denied by such office, if 
                such authority has been delegated to such office by the 
                Corporation; and
                    ``(C) may only be denied by such office if the 
                general counsel of the Corporation (or a designee) 
                certifies that the denial is consistent with this 
                section.
            ``(3) Individual applications filed with regional 
        offices.--Consent applications filed at a regional office by an 
        individual--
                    ``(A) shall be reviewed by such office; and
                    ``(B) may be approved or denied by such office, if 
                such authority has been delegated to such office by the 
                Corporation, except with respect to--
                            ``(i) cases involving an offense described 
                        under subsection (a)(2); and
                            ``(ii) such other high-level security cases 
                        as may be designated by the Corporation.
            ``(4) National office review.--The national office of the 
        Corporation shall--
                    ``(A) review any consent application with respect 
                to which a regional office is not authorized to approve 
                or deny the application; and
                    ``(B) review any consent application that is denied 
                by a regional office, if the individual requests a 
                review by the national office.
            ``(5) Forms and instructions.--
                    ``(A) Availability.--The Corporation shall make all 
                forms and instructions related to consent applications 
                available to the public, including on the website of 
                the Corporation.
                    ``(B) Contents.--The forms and instructions 
                described under subparagraph (A) shall provide a sample 
                cover letter and a comprehensive list of items that may 
                accompany the application, including clear guidance on 
                evidence that may support a finding of rehabilitation.
            ``(6) Consideration of criminal history.--
                    ``(A) Regional office consideration.--In reviewing 
                a consent application, a regional office shall--
                            ``(i) primarily rely on the criminal 
                        history record of the Federal Bureau of 
                        Investigation; and
                            ``(ii) provide such record to the applicant 
                        to review for accuracy.
                    ``(B) Certified copies.--The Corporation may not 
                require an applicant to provide certified copies of 
                criminal history records unless the Corporation 
                determines that there is a clear and compelling 
                justification to require additional information to 
                verify the accuracy of the criminal history record of 
                the Federal Bureau of Investigation.
            ``(7) Consideration of rehabilitation.--Consistent with 
        title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et 
        seq.), the Corporation shall--
                    ``(A) conduct an individualized assessment when 
                evaluating consent applications that takes into account 
                evidence of rehabilitation, the applicant's age at the 
                time of the conviction or program entry, the time that 
                has elapsed since conviction or program entry, and the 
                relationship of individual's offense to the 
                responsibilities of the applicable position;
                    ``(B) consider the individual's employment history, 
                letters of recommendation, certificates documenting 
                participation in substance abuse programs, successful 
                participating in job preparation and educational 
                programs, and other relevant mitigating evidence; and
                    ``(C) consider any additional information the 
                Corporation determines necessary for safety and 
                soundness.
            ``(8) Scope of employment.--With respect to an approved 
        consent application filed by an insured depository institution 
        or depository institution holding company on behalf of an 
        individual, if the Corporation determines it appropriate, such 
        approved consent application shall allow the individual to work 
        for the same employer (without restrictions on the location) 
        and across positions, except that the prior consent of the 
        Corporation (which may require a new application) shall be 
        required for any proposed significant changes in the 
        individual's security-related duties or responsibilities, such 
        as promotion to an officer or other positions that the employer 
        determines will require higher security screening credentials.
            ``(9) Coordination with the ncua.--In carrying out this 
        section, the Corporation shall consult and coordinate with the 
        National Credit Union Administration as needed to promote 
        consistent implementation where appropriate.
    ``(g) Definitions.--In this section:
            ``(1) Consent application.--The term `consent application' 
        means an application filed with Corporation by an individual 
        (or by an insured depository institution or depository 
        institution holding company on behalf of an individual) seeking 
        the written consent of the Corporation under subsection (a)(1).
            ``(2) Criminal offense involving dishonesty.--The term 
        `criminal offense involving dishonesty'--
                    ``(A) means an offense under which an individual, 
                directly or indirectly--
                            ``(i) cheats or defrauds; or
                            ``(ii) wrongfully takes property belonging 
                        to another in violation of a criminal statute;
                    ``(B) includes an offense that Federal, State, or 
                local law defines as dishonest, or for which dishonesty 
                is an element of the offense; and
                    ``(C) does not include--
                            ``(i) a misdemeanor criminal offense 
                        committed more than one year before the date on 
                        which an individual files a consent 
                        application, excluding any period of 
                        incarceration; or
                            ``(ii) an offense involving the possession 
                        of controlled substances.
            ``(3) Pretrial diversion or similar program.--The term 
        `pretrial diversion or similar program' means a program 
        characterized by a suspension or eventual dismissal or reversal 
        of charges or criminal prosecution upon agreement by the 
        accused to restitution, drug or alcohol rehabilitation, anger 
        management, or community service.''.
    (b) Federal Credit Union Act.--Section 205(d) of the Federal Credit 
Union Act (12 U.S.C. 1785(d)) is amended by adding at the end the 
following:
            ``(4) Exceptions.--
                    ``(A) Certain older offenses.--
                            ``(i) In general.--With respect to an 
                        individual, paragraph (1) shall not apply to an 
                        offense if--
                                    ``(I) it has been 7 years or more 
                                since the offense occurred; or
                                    ``(II) the individual was 
                                incarcerated with respect to the 
                                offense and it has been 5 years or more 
                                since the individual was released from 
                                incarceration.
                            ``(ii) Offenses committed by individuals 21 
                        or younger.--For individuals who committed an 
                        offense when they were 21 years of age or 
                        younger, paragraph (1) shall not apply to the 
                        offense if it has been more than 30 months 
                        since the sentencing occurred.
                            ``(iii) Limitation.--This subparagraph 
                        shall not apply to an offense described under 
                        paragraph (1)(B).
                    ``(B) Expungement and sealing.--With respect to an 
                individual, paragraph (1) shall not apply to an offense 
                if--
                            ``(i) there is an order of expungement, 
                        sealing, or dismissal that has been issued in 
                        regard to the conviction in connection with 
                        such offense; and
                            ``(ii) it is intended by the language in 
                        the order itself, or in the legislative 
                        provisions under which the order was issued, 
                        that the conviction shall be destroyed or 
                        sealed from the individual's State or Federal 
                        record, even if exceptions allow the record to 
                        be considered for certain character and fitness 
                        evaluation purposes.
                    ``(C) De minimis exemption.--
                            ``(i) In general.--Paragraph (1) shall not 
                        apply to such de minimis offenses as the Board 
                        determines, by rule.
                            ``(ii) Confinement criteria.--In issuing 
                        rules under clause (i), the Board shall include 
                        a requirement that the offense was punishable 
                        by a term of three years or less confined in a 
                        correctional facility, where such confinement--
                                    ``(I) is calculated based on the 
                                time an individual spent incarcerated 
                                as a punishment or a sanction, not as 
                                pretrial detention; and
                                    ``(II) does not include probation 
                                or parole where an individual was 
                                restricted to a particular jurisdiction 
                                or was required to report occasionally 
                                to an individual or a specific 
                                location.
                            ``(iii) Bad check criteria.--In setting the 
                        criteria for de minimis offenses under clause 
                        (i), if the Board establishes criteria with 
                        respect to insufficient funds checks, the Board 
                        shall require that the aggregate total face 
                        value of all insufficient funds checks across 
                        all convictions or program entries related to 
                        insufficient funds checks is $2,000 or less.
                            ``(iv) Designated lesser offenses.--
                        Paragraph (1) shall not apply to certain lesser 
                        offenses (including the use of a fake ID, 
                        shoplifting, trespass, fare evasion, driving 
                        with an expired license or tag, and such other 
                        low-risk offenses as the Board may designate) 
                        if 1 year or more has passed since the 
                        applicable conviction or program entry.
            ``(5) Consent applications.--
                    ``(A) In general.--The Board shall accept consent 
                applications from an individual and from an insured 
                credit union on behalf of an individual that are filed 
                separately or contemporaneously with a regional office 
                of the Board.
                    ``(B) Sponsored applications filed with regional 
                offices.--Consent applications filed at a regional 
                office of the Board by an insured credit union on 
                behalf of an individual--
                            ``(i) shall be reviewed by such office;
                            ``(ii) may be approved or denied by such 
                        office, if such authority has been delegated to 
                        such office by the Board; and
                            ``(iii) may only be denied by such office 
                        if the general counsel of the Board (or a 
                        designee) certifies that the denial is 
                        consistent with this section.
                    ``(C) Individual applications filed with regional 
                offices.--Consent applications filed at a regional 
                office by an individual--
                            ``(i) shall be reviewed by such office; and
                            ``(ii) may be approved or denied by such 
                        office, if such authority has been delegated to 
                        such office by the Board, except with respect 
                        to--
                                    ``(I) cases involving an offense 
                                described under paragraph (1)(B); and
                                    ``(II) such other high-level 
                                security cases as may be designated by 
                                the Board.
                    ``(D) National office review.--The national office 
                of the Board shall--
                            ``(i) review any consent application with 
                        respect to which a regional office is not 
                        authorized to approve or deny the application; 
                        and
                            ``(ii) review any consent application that 
                        is denied by a regional office, if the 
                        individual requests a review by the national 
                        office.
                    ``(E) Forms and instructions.--
                            ``(i) Availability.--The Board shall make 
                        all forms and instructions related to consent 
                        applications available to the public, including 
                        on the website of the Board.
                            ``(ii) Contents.--The forms and 
                        instructions described under clause (i) shall 
                        provide a sample cover letter and a 
                        comprehensive list of items that may accompany 
                        the application, including clear guidance on 
                        evidence that may support a finding of 
                        rehabilitation.
                    ``(F) Consideration of criminal history.--
                            ``(i) Regional office consideration.--In 
                        reviewing a consent application, a regional 
                        office shall--
                                    ``(I) primarily rely on the 
                                criminal history record of the Federal 
                                Bureau of Investigation; and
                                    ``(II) provide such record to the 
                                applicant to review for accuracy.
                            ``(ii) Certified copies.--The Board may not 
                        require an applicant to provide certified 
                        copies of criminal history records unless the 
                        Board determines that there is a clear and 
                        compelling justification to require additional 
                        information to verify the accuracy of the 
                        criminal history record of the Federal Bureau 
                        of Investigation.
                    ``(G) Consideration of rehabilitation.--Consistent 
                with title VII of the Civil Rights Act of 1964 (42 
                U.S.C. 2000e et seq.), the Board shall--
                            ``(i) conduct an individualized assessment 
                        when evaluating consent applications that takes 
                        into account evidence of rehabilitation, the 
                        applicant's age at the time of the conviction 
                        or program entry, the time that has elapsed 
                        since conviction or program entry, and the 
                        relationship of individual's offense to the 
                        responsibilities of the applicable position;
                            ``(ii) consider the individual's employment 
                        history, letters of recommendation, 
                        certificates documenting participation in 
                        substance abuse programs, successful 
                        participating in job preparation and 
                        educational programs, and other relevant 
                        mitigating evidence; and
                            ``(iii) consider any additional information 
                        the Board determines necessary for safety and 
                        soundness.
                    ``(H) Scope of employment.--With respect to an 
                approved consent application filed by an insured credit 
                union on behalf of an individual, if the Board 
                determines it appropriate, such approved consent 
                application shall allow the individual to work for the 
                same employer (without restrictions on the location) 
                and across positions, except that the prior consent of 
                the Board (which may require a new application) shall 
                be required for any proposed significant changes in the 
                individual's security-related duties or 
                responsibilities, such as promotion to an officer or 
                other positions that the employer determines will 
                require higher security screening credentials.
                    ``(I) Coordination with fdic.--In carrying out this 
                subsection, the Board shall consult and coordinate with 
                the Federal Deposit Insurance Corporation as needed to 
                promote consistent implementation where appropriate.
            ``(6) Definitions.--In this subsection:
                    ``(A) Consent application.--The term `consent 
                application' means an application filed with Board by 
                an individual (or by an insured credit union on behalf 
                of an individual) seeking the written consent of the 
                Board under paragraph (1)(A).
                    ``(B) Criminal offense involving dishonesty.--The 
                term `criminal offense involving dishonesty'--
                            ``(i) means an offense under which an 
                        individual, directly or indirectly--
                                    ``(I) cheats or defrauds; or
                                    ``(II) wrongfully takes property 
                                belonging to another in violation of a 
                                criminal statute;
                            ``(ii) includes an offense that Federal, 
                        State, or local law defines as dishonest, or 
                        for which dishonesty is an element of the 
                        offense; and
                            ``(iii) does not include--
                                    ``(I) a misdemeanor criminal 
                                offense committed more than one year 
                                before the date on which an individual 
                                files a consent application, excluding 
                                any period of incarceration; or
                                    ``(II) an offense involving the 
                                possession of controlled substances.
                    ``(C) Pretrial diversion or similar program.--The 
                term `pretrial diversion or similar program' means a 
                program characterized by a suspension or eventual 
                dismissal or reversal of charges or criminal 
                prosecution upon agreement by the accused to 
                restitution, drug or alcohol rehabilitation, anger 
                management, or community service.''.
    (c) Review and Report to Congress.--Not later than the end of the 
2-year period beginning on the date of enactment of this Act, the 
Federal Deposit Insurance Corporation and the National Credit Union 
Administration shall--
            (1) review the rules issued to carry out this section and 
        the amendments made by this section on--
                    (A) the application of section 19 of the Federal 
                Deposit Insurance Act (12 U.S.C. 1829) and section 
                205(d) of the Federal Credit Union Act (12 U.S.C. 
                1785(d));
                    (B) the number of applications for consent 
                applications under such sections; and
                    (C) the rates of approval and denial for consent 
                applications under such sections;
            (2) make the results of the review required under paragraph 
        (1) available to the public; and
            (3) issue a report to Congress containing any legislative 
        or regulatory recommendations for expanding employment 
        opportunities for those with a previous minor criminal offense.

SEC. 706. FAIR ACCESS TO FINANCIAL SERVICES.

    (a) In General.--All persons shall be entitled to the full and 
equal enjoyment of the goods, services, facilities, privileges, and 
accommodations of any financial institution, as defined in section 803 
of the Payment, Clearing, and Settlement Supervision Act of 2010 (12 
U.S.C. 5462), without discrimination on the ground of race, color, 
religion, national origin, and sex (including sexual orientation and 
gender identity).
    (b) Private Right of Action.--
            (1) In general.--Whenever any person has engaged or there 
        are reasonable grounds to believe that any person is about to 
        engage in any act or practice prohibited by subsection (a), a 
        civil action for preventive relief, including an application 
        for a permanent or temporary injunction, restraining order, or 
        other order, may be instituted by the person aggrieved.
            (2) Costs.--In any action commenced pursuant to this 
        section, the court, in its discretion, may allow the prevailing 
        party, other than the United States, a reasonable attorney's 
        fee as part of the costs, and the United States shall be liable 
        for costs the same as a private person.
            (3) Jurisdiction.--The district courts of the United States 
        shall have jurisdiction of proceedings instituted pursuant to 
        this section and shall exercise the same without regard to 
        whether the aggrieved party shall have exhausted any 
        administrative or other remedies that may be provided by law.
            (4) Exclusive means.--The remedies provided in this 
        subsection shall be the exclusive means of enforcing the rights 
        based on this section, but nothing in this section shall 
        preclude any individual or any State or local agency from 
        asserting any right based on any other Federal or State law not 
        inconsistent with this section, including any statute or 
        ordinance requiring nondiscrimination in goods, services, 
        facilities, privileges, and accommodations of any financial 
        institution, or from pursuing any remedy, civil or criminal, 
        which may be available for the vindication or enforcement of 
        such right.

SEC. 707. CONSUMER PROTECTIONS FOR INDIVIDUALS WITH NONVIOLENT CRIMINAL 
              RECORD.

    No institution may deny financial services to an applicant solely 
based on a prior conviction for a nonviolent cannabis offense.

                       TITLE VIII--MISCELLANEOUS

SEC. 801. COMPTROLLER GENERAL REVIEW OF LAWS AND REGULATIONS.

    (a) In General.--The Comptroller General shall conduct a review of 
Federal laws, regulations, and policies to--
            (1) determine if any changes in them are desirable in the 
        light of the purposes and provisions of this Act;
            (2) identify any use of the terms ``marijuana'' or 
        ``marihuana'' in the rulings, regulations, or interpretations 
        of various administrative bureaus and agencies of the United 
        States and recommend that such terms be replaced with the term 
        ``cannabis''; and
            (3) identify any use of the terms ``marijuana'' or 
        ``marihuana'' in the statutes of the United States and propose 
        any amendments necessary to such statutes to replace such terms 
        with the term ``cannabis''.
    (b) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Comptroller General shall make to Congress and the 
relevant agencies such recommendations relating to the results of the 
review described in subsection (a) as the Comptroller General deems 
appropriate.

SEC. 802. CANNABIS PRODUCTS ADVISORY COMMITTEE.

    (a) Establishment.--
            (1) In general.--There is established the Cannabis Products 
        Advisory Committee (in this section referred to as the 
        ``Committee'').
            (2) Purpose.--The Committee shall advise any relevant 
        Federal regulatory body, agency, or bureau regarding the 
        administration of this Act (including any amendments made by 
        this Act).
    (b) Membership.--
            (1) Appointments.--
                    (A) In general.--The Committee shall be composed of 
                22 members who are appointed by the Secretary of Health 
                and Human Services (in this section referred to as the 
                ``Secretary'').
                    (B) Date.--The Secretary shall make the 
                appointments described in subparagraph (A) not later 
                than 60 days after the date of enactment of this 
                section.
            (2) Term of service.--
                    (A) In general.--Each member of the Committee shall 
                serve a term of 5 years from the date of appointment by 
                the Secretary. No member may be removed prior to the 
                expiration of his or her term without a showing of good 
                cause.
                    (B) Reappointment.--A member may be reappointed but 
                may not serve more than 2 terms.
                    (C) Vacancies.--
                            (i) In general.--Any vacancy in the 
                        Committee shall be filled by the Secretary not 
                        later than 90 days after the vacancy.
                            (ii) Term.--A member appointed to fill a 
                        vacancy in the Committee shall serve as a 
                        member of the Committee for the remainder of 
                        the original term of appointment.
            (3) Membership composition.--The Committee shall be 
        composed of the following members:
                    (A) Industry stakeholders.--Three representatives 
                from the cannabis industry, not less than 1 of which is 
                an individual representing a historically 
                underrepresented community or an individual adversely 
                impacted by the War on Drugs (as defined in section 301 
                of this Act), including--
                            (i) 2 individuals who represent the 
                        viewpoint of cannabis cultivators and 
                        processors; and
                            (ii) 1 individual who represents the 
                        viewpoint of cannabis wholesalers and 
                        retailers.
                    (B) Equity and social justice advocate.--One 
                individual with experience in equity and social justice 
                advocacy with respect to the cannabis industry and 
                criminal justice.
                    (C) State cannabis regulator.--One individual who 
                represents the viewpoint of State cannabis regulators.
                    (D) Consumers and patients.--One individual who 
                represents the viewpoint of cannabis consumers and 
                patients.
                    (E) Public health, medicine, or science.--Four 
                individuals who are technically qualified by training 
                and experience in public health, medicine, or other 
                sciences, including--
                            (i) 2 individuals with domestic or 
                        international cannabinoid research experience, 
                        1 of whom shall also have experience treating 
                        patients using medical cannabis; and
                            (ii) 2 individuals with experience in 
                        substance use and misuse prevention, 
                        intervention, and treatment, 1 of whom shall 
                        have such experience pertaining to individuals 
                        under 21 years of age.
                    (F) Public safety.--One individual with experience 
                in public safety with respect to cannabis and the 
                cannabis industry.
                    (G) Office of national drug control policy.--One 
                representative from the Office of National Drug Control 
                Policy.
                    (H) Department of veterans affairs.--One 
                representative from the Department of Veterans Affairs.
                    (I) Alcohol, tobacco, and cannabis tax and trade 
                bureau.--One representative from the Alcohol, Tobacco, 
                and Cannabis Tax and Trade Bureau.
                    (J) National governors association.--One 
                representative from the National Governors Association.
                    (K) Department of transportation.--One 
                representative from the Department of Transportation.
                    (L) Department of health and human services.--Four 
                representatives from the Department of Health and Human 
                Services, including from the Food and Drug 
                Administration, the Centers for Disease Control and 
                Prevention, the National Institutes of Health, and the 
                Substance Abuse and Mental Health Services 
                Administration.
                    (M) Labor unions.--One labor union representative.
                    (N) Indian tribe.--One representative from an 
                Indian Tribe.
            (4) Administrative support.--The Secretary shall furnish 
        the Committee clerical and other assistance to enable the 
        Committee to perform its duties.
            (5) Compensation.--
                    (A) Compensation of members.--A member of the 
                Committee who is not an officer or employee of the 
                Federal Government shall be compensated at a rate fixed 
                by the Secretary, which may not exceed the daily 
                equivalent of the rate in effect under the Senior 
                Executive Schedule under section 5382 of title 5, 
                United States Code, for each day (including travel 
                time) during which the member is engaged in the 
                performance of the duties of the Committee.
                    (B) Travel expenses.--While away from their home or 
                regular place of business in the performance of 
                services for the Committee, a member of the Committee 
                shall be allowed travel expenses, including per diem in 
                lieu of subsistence, at rates authorized by section 
                5703 of title 5, United States Code, for persons in 
                Government service employed intermittently.
            (6) Chair.--The Committee shall select a Chair from among 
        the members of the Committee.
            (7) Subcommittees.--The Committee may establish 
        subcommittees to facilitate the ability of the Committee to 
        discharge its duties (as described in subsection (c)).
    (c) Duties.--The Committee shall--
            (1) consider all matters submitted to it by the Secretary;
            (2) on its own initiative, recommend to the Secretary 
        guidelines, rules, and regulations and any changes to 
        guidelines, rules, and regulations that the Committee considers 
        important or necessary for the Secretary's review and 
        consideration, with a focus on ensuring equity and social 
        justice in such guidelines, rules, and regulations;
            (3) consider the safety of introducing new cannabis 
        products into the market;
            (4) review and recommend public health surveillance 
        activities to monitor population-level health effects with 
        respect to cannabis;
            (5) identify and prioritize gaps in the science important 
        to public health and medicine with respect to cannabis;
            (6) make recommendations to the Secretary of the Treasury 
        regarding approval of waivers of disqualifying offenses with 
        respect to permit applications under section 302(a)(2)(B) of 
        the Federal Alcohol Administration Act (27 U.S.C. 201 et seq.) 
        (as added by section 511); and
            (7) not later than 1 year after the date of enactment of 
        this section, and annually thereafter, publish a publicly 
        available report describing the activities of the Committee, 
        including any recommendations the Committee made to the 
        Secretary during the reporting period and whether such 
        recommendations were implemented.
    (d) Meetings.--
            (1) Frequency.--
                    (A) In general.--The Committee shall meet on a 
                quarterly basis but may meet more frequently if 
                necessary.
                    (B) Cancellation.--
                            (i) In general.--Subject to clause (ii), 
                        the Chair may cancel a Committee meeting not 
                        less than 3 business days prior to such meeting 
                        if, in consultation with the members of the 
                        Committee, the Chair determines--
                                    (I) the meeting is not needed; or
                                    (II) there will not be a quorum 
                                present at such meeting.
                            (ii) Exceptions.--Any meeting may be 
                        canceled by the Chair at any time due to 
                        inclement weather or an emergency situation.
            (2) Voting.--
                    (A) Quorum.--
                            (i) In general.--A majority of the members 
                        of the Committee shall constitute a quorum.
                            (ii) Requirement.--A quorum of members 
                        shall be required for any decision of the 
                        Committee.
                            (iii) Effect of no quorum.--In the absence 
                        of such a quorum, any business transacted by 
                        the Committee shall be null and void, except 
                        any measure taken to obtain a quorum or to 
                        reschedule another meeting.
                    (B) Majority vote.--Any decision by or 
                recommendation to the Secretary of the Treasury or the 
                Secretary of Health and Human Services from the 
                Committee shall be adopted by a majority vote of the 
                Committee.
                    (C) Consensus; vote recording.--
                            (i) In general.--Decision-making by the 
                        Committee shall be by consensus when possible.
                            (ii) No consensus.--
                                    (I) Vote.--If consensus cannot be 
                                reached by the Committee, a vote of the 
                                members of the Committee will be taken.
                                    (II) Quorum required.--To take a 
                                vote under subclause (I), a quorum of 
                                the members shall be present.
                                    (III) Recording.--The results of 
                                any vote taken under subclause (I) 
                                shall be recorded, as well as any 
                                statement of concurrence or 
                                disagreement, if applicable.
            (3) Teleconference.--A member may fully participate in a 
        meeting via teleconference.
            (4) Confidentiality.--
                    (A) In general.--Any discussion of the Committee 
                relative to the work of the Committee is regarded as 
                confidential information and may not be discussed in 
                any form outside the context of the Committee meetings.
                    (B) Waiver requests.--Any materials submitted to 
                the Committee under section 302(a)(2)(B) of the Federal 
                Alcohol Administration Act (27 U.S.C. 201 et seq.) (as 
                added by section 511), and any transcript made with 
                respect to such submission regarding any particular 
                person, shall be redacted.
            (5) Non-application of faca.--Section 10 of the Federal 
        Advisory Committee Act (5 U.S.C. App.) shall not apply to any 
        part of a meeting held by the Committee with respect to a 
        waiver request submitted to the Committee under section 
        302(a)(2)(B) of the Federal Alcohol Administration Act (27 
        U.S.C. 201 et seq.) (as added by section 511).
    (e) Statements of Policy.--A member of the Committee may not make a 
statement of policy that purports to be that of the Committee unless 
the Committee has adopted such a policy, except that any such member 
shall not be prohibited from stating his or her personal opinion, 
provided the opinion is clearly identified as such.
    (f) Termination.--Section 14 of the Federal Advisory Committee Act 
(5 U.S.C. App.) shall not apply to the Committee.

SEC. 803. DEFINITION OF HEMP UNDER USDA DOMESTIC HEMP PRODUCTION 
              PROGRAM.

    Section 297A(1) of the Agricultural Marketing Act of 1946 (7 U.S.C. 
1639o(1)) is amended--
            (1) by striking ``The term'' and inserting the following:
                    ``(A) In general.--The term''; and
            (2) in subparagraph (A) (as so designated), by striking 
        ``with a delta-9 tetrahydrocannabinol concentration of not more 
        than 0.3 percent on a dry weight basis.'' and inserting the 
        following: ``and any products made or derived from such plant 
        or parts, with a total tetrahydrocannabinol equivalent 
        concentration of not more than the allowable 
        tetrahydrocannabinol equivalent amount described in 
        subparagraph (C).
                    ``(B) Total tetrahydrocannabinol equivalent.--
                            ``(i) In general.--Subject to clause (ii), 
                        in subparagraph (A), the term `total 
                        tetrahydrocannabinol equivalent' means--
                                    ``(I) any tetrahydrocannabinol, 
                                including--
                                            ``(aa) delta-8 
                                        tetrahydrocannabinol;
                                            ``(bb) delta-9 
                                        tetrahydrocannabinol;
                                            ``(cc) delta-10 
                                        tetrahydrocannabinol; and
                                            ``(dd) 
                                        tetrahydrocannabinolic acid; 
                                        and
                                    ``(II) any other substance 
                                described in paragraph (ss)(1)(A) of 
                                section 201 of the Federal Food, Drug, 
                                and Cosmetic Act (21 U.S.C. 321) that 
                                has similar effects on the body as a 
                                substance described in item (aa), (bb), 
                                or (cc) of subclause (I), including 
                                through interaction with other 
                                substances in the applicable product.
                            ``(ii) Exclusion of isomers.--The Secretary 
                        of Health and Human Services, in consultation 
                        with the Secretary of the Treasury and the 
                        Attorney General, may exclude 1 or more isomers 
                        of tetrahydrocannabinol from the definition 
                        under clause (i).
                    ``(C) Allowable tetrahydrocannabinol equivalent 
                amount.--
                            ``(i) In general.--Subject to clause (ii), 
                        the allowable tetrahydrocannabinol equivalent 
                        amount referred to in subparagraph (A) is--
                                    ``(I) except as provided in 
                                subclause (II), 1 milligram of total 
                                tetrahydrocannabinol per 100 grams on a 
                                dry weight basis (or a proportionate 
                                amount of any fraction thereof); and
                                    ``(II) in the case of any specified 
                                plant product described in clause 
                                (iii), 0.7 percent total 
                                tetrahydrocannabinol equivalent on a 
                                dry weight basis.
                            ``(ii) Modification; determination with 
                        respect to tetrahydrocannabinolic acid.--For 
                        purposes of clause (i), under regulations 
                        promulgated by the Secretary of Health and 
                        Human Services, in consultation with the 
                        Secretary of the Treasury and the Attorney 
                        General--
                                    ``(I) the Secretary may modify the 
                                allowable tetrahydrocannabinol 
                                equivalent amounts described in clause 
                                (i) if the Secretary determines that 
                                the effects on the body of such 
                                substance or interaction of substances 
                                differ significantly from the effects 
                                on the body of delta-9 
                                tetrahydrocannabinol; and
                                    ``(II) rules similar to the rules 
                                relating to the determination of `Total 
                                THC' in section 990.1 of title 7, Code 
                                of Federal Regulations (as in effect on 
                                the date of enactment of the Cannabis 
                                Administration and Opportunity Act), 
                                shall apply in calculating the ratio of 
                                tetrahydrocannabinolic acid described 
                                in subparagraph (B)(i)(I)(dd) taken 
                                into account for purposes of 
                                determining the allowable 
                                tetrahydrocannabinol equivalent amount.
                            ``(iii) Specified plant product.--A 
                        specified plant product referred to in clause 
                        (i)(II) is any item described in paragraph 
                        (ss)(1)(A) of section 201 of the Federal Food, 
                        Drug, and Cosmetic Act (21 U.S.C. 321) that 
                        does not contain any item described in that 
                        paragraph that has been processed, extracted, 
                        or concentrated (other than harvesting, drying, 
                        curing, or trimming).''.

SEC. 804. GRANTS FOR HIRING AND TRAINING RELATING TO CANNABIS 
              ENFORCEMENT.

    (a) Amendment.--Section 1701 of title I of the Omnibus Crime 
Control and Safe Streets Act of 1968 (34 U.S.C. 10381) is amended--
            (1) by redesignating subsection (m) as subsection (o); and
            (2) by inserting after subsection (l) the following:
    ``(m) COPS Grants for Small Departments To Combat Illicit Cannabis 
Production and Distribution.--
            ``(1) Eligible entity defined.--In this subsection, the 
        term `eligible entity' means a law enforcement agency that--
                    ``(A) has not more than 50 sworn law enforcement 
                officers;
                    ``(B) serves not more than 50,000 residents; and
                    ``(C) demonstrates a need for additional personnel 
                to combat illicit cannabis production and distribution.
            ``(2) Grants.--The Attorney General shall award competitive 
        grants to eligible entities for hiring--
                    ``(A) sworn law enforcement officers;
                    ``(B) non-sworn law enforcement officers;
                    ``(C) investigators; and
                    ``(D) community outreach specialists.
    ``(n) Cannabis Law Education Programs and Technical Assistance.--
            ``(1) Program development.--The Attorney General shall 
        develop Federal education programs and technical assistance for 
        State and local law enforcement agencies to develop the 
        knowledge and expertise necessary to ensure--
                    ``(A) the enforcement of State and Federal cannabis 
                laws; and
                    ``(B) that the enforcement described in 
                subparagraph (A) is consistent with the Constitution of 
                the United States.
            ``(2) State-specific training and guidance.--The Director 
        of the Bureau of Justice Assistance shall develop State-
        specific training and guidance for law enforcement agencies 
        within a jurisdiction for use in the Federal education programs 
        described in paragraph (1).
            ``(3) Grants.--The Attorney General shall award grants to 
        law enforcement agencies for the costs associated with training 
        under this subsection.''.
    (b) Appropriations.--In addition to amounts otherwise available, 
there is appropriated, out of any funds in the Treasury not otherwise 
appropriated, $15,000,000 for each of fiscal years 2023 through 2027 to 
carry out this section.

SEC. 805. 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.
                                 <all>
Cannabis Administration and Opportunity Act
A bill to decriminalize and deschedule cannabis, to provide for reinvestment in certain persons adversely impacted by the War on Drugs, to provide expungement of certain cannabis offenses, and for other purposes.
Cannabis Administration and Opportunity Act
Sen. Booker, Cory A.