Responsibly Addressing the Marijuana Policy Gap Act of 2019

II 116TH CONGRESS 1ST SESSION S. 421 To amend the Controlled Substances Act to reduce the gap between Federal and State marijuana policy, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 7, 2019 Mr. WYDEN introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Controlled Substances Act to reduce the gap between Federal and State marijuana policy, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Responsibly Addressing the Marijuana Policy Gap Act of 5 2019’’. 6 (b) TABLE OF CONTENTS.—The table of contents for 7 this Act is as follows: 8 Sec. 1. Short title; table of contents. Sec. 2. Definitions. VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 421 IS TITLE I—FEDERALISM IN MARIJUANA POLICY Sec. 101. Elimination of criminal penalties for certain persons complying with State law. TITLE II—REMOVING BUSINESS AND BANKING BARRIERS Sec. 201. Allowance of deductions and credits relating to expenditures in con- nection with marijuana sales conducted in compliance with State law. Sec. 202. Marijuana print advertising. Sec. 203. Safe harbor for marijuana broadcast advertising. Sec. 204. Access to banking. Sec. 205. Requirements for filing suspicious activity reports. Sec. 206. Bankruptcy protection. Sec. 207. Tribal marijuana sovereignty. TITLE III—INDIVIDUAL PROTECTIONS Sec. 301. Expungement of criminal records for certain marijuana-related of- fenses. Sec. 302. Limit on drug testing for applicants for Federal employment. Sec. 303. Fair access to education. Sec. 304. Civil forfeiture exemption for marijuana facilities authorized by State law. Sec. 305. Prohibition on inadmissibility or deportation of aliens who comply with State law. Sec. 306. Drug-related criminal activity in federally assisted housing. TITLE IV—MEDICAL MARIJUANA RESEARCH AND ACCESS Sec. 401. Medical Marijuana Research Act. Sec. 402. Provision by health care providers of the Department of Veterans Af- fairs of recommendations and opinions regarding veteran par- ticipation in State marijuana programs. Sec. 403. Provision by medical professionals of the Indian Health Service of recommendations and opinions regarding participation in State marijuana programs. SEC. 2. DEFINITIONS. 1 In this Act— 2 (1) the term ‘‘depository institution’’ means— 3 (A) a depository institution as defined in 4 section 3(c) of the Federal Deposit Insurance 5 Act (12 U.S.C. 1813(c)); 6 VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 3 •S 421 IS (B) a Federal credit union as defined in 1 section 101 of the Federal Credit Union Act 2 (12 U.S.C. 1752); or 3 (C) a State credit union as defined in sec- 4 tion 101 of the Federal Credit Union Act (12 5 U.S.C. 1752); 6 (2) the term ‘‘Indian country’’ has the meaning 7 given the term in section 1151 of title 18, United 8 States Code; 9 (3) the term ‘‘Indian tribe’’ has the meaning 10 given the term in section 4 of the Indian Self-Deter- 11 mination and Education Assistance Act (25 U.S.C. 12 5304); 13 (4) the term ‘‘marijuana’’ has the meaning 14 given the term in section 102 of the Controlled Sub- 15 stances Act (21 U.S.C. 802), as amended by section 16 401(d) of this Act; 17 (5) the term ‘‘marijuana derivative’’ means any 18 marijuana product that is not a naturally grown and 19 unadulterated marijuana flower product; 20 (6) the term ‘‘marijuana product’’ means any 21 article that contains marijuana or any marijuana de- 22 rivative; 23 VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 4 •S 421 IS (7) the term ‘‘marijuana-related business’’ 1 means a manufacturer, producer, or any person 2 that— 3 (A) participates in any business or orga- 4 nized activity that involves handling marijuana 5 or marijuana products, including selling, trans- 6 porting, displaying, dispensing, or distributing 7 marijuana or marijuana products; and 8 (B) engages in such activity pursuant to a 9 law established by a State, a unit of local gov- 10 ernment, or an Indian tribe that has jurisdic- 11 tion over the Indian country in which the activ- 12 ity occurs; and 13 (8) the term ‘‘State’’ means each of the several 14 States, the District of Columbia, Puerto Rico, and 15 any territory or possession of the United States. 16 TITLE I—FEDERALISM IN 17 MARIJUANA POLICY 18 SEC. 101. ELIMINATION OF CRIMINAL PENALTIES FOR CER- 19 TAIN PERSONS COMPLYING WITH STATE 20 LAW. 21 Section 708 of the Controlled Substances Act (21 22 U.S.C. 903) is amended— 23 (1) by striking ‘‘No provision’’ and inserting 24 the following: 25 VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 5 •S 421 IS ‘‘(a) IN GENERAL.—Except as provided in subsection 1 (b), no provision’’; and 2 (2) by adding at the end the following: 3 ‘‘(b) COMPLIANCE WITH STATE LAW.—Notwith- 4 standing any other provision of law, the provisions of this 5 title relating to marihuana shall not apply to any person 6 acting in compliance with State law or the law of the In- 7 dian tribe that has jurisdiction over the Indian country, 8 as defined in section 1151 of title 18, United States Code, 9 where the conduct occurs relating to— 10 ‘‘(1) the production, possession, distribution, 11 dispensation, administration, laboratory testing, or 12 delivery of marihuana; or 13 ‘‘(2) the provision of ancillary services related 14 to the activities described in paragraph (1), such as 15 legal representation, payment processing, adver- 16 tising, security services, scientific and safety testing, 17 or property leasing.’’. 18 VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 6 •S 421 IS TITLE II—REMOVING BUSINESS 1 AND BANKING BARRIERS 2 SEC. 201. ALLOWANCE OF DEDUCTIONS AND CREDITS RE- 3 LATING TO EXPENDITURES IN CONNECTION 4 WITH MARIJUANA SALES CONDUCTED IN 5 COMPLIANCE WITH STATE LAW. 6 (a) SHORT TITLE.—This section may be cited as the 7 ‘‘Small Business Tax Equity Act of 2019’’. 8 (b) ALLOWANCE.—Section 280E of the Internal Rev- 9 enue Code of 1986 is amended by inserting before the pe- 10 riod at the end the following: ‘‘, unless such trade or busi- 11 ness consists of marijuana sales conducted in compliance 12 with State law or the law of the Indian tribe, as defined 13 in section 4 of the Indian Self-Determination and Edu- 14 cation Assistance Act (25 U.S.C. 5304), that has jurisdic- 15 tion over the Indian country, as defined in section 1151 16 of title 18, where the trade or business is conducted’’. 17 (c) EFFECTIVE DATE.—The amendment made by 18 this section shall apply with respect to taxable years end- 19 ing after the date of the enactment of this Act. 20 SEC. 202. MARIJUANA PRINT ADVERTISING. 21 (a) SHORT TITLE.—This section may be cited as the 22 ‘‘Marijuana Advertising In Legal States Act’’ or the 23 ‘‘MAILS Act’’. 24 VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 7 •S 421 IS (b) MARIJUANA PRINT ADVERTISING.—Section 1 403(c)(1) of the Controlled Substances Act (21 U.S.C. 2 843(c)(1)) is amended by adding at the end the following: 3 ‘‘This paragraph does not apply to an advertisement to 4 the extent that the advertisement relates to an activity, 5 involving marihuana, that is in compliance with the law 6 of the State or the law of the Indian tribe, as defined in 7 section 4 of the Indian Self-Determination and Education 8 Assistance Act (25 U.S.C. 5304), that has jurisdiction 9 over the Indian country, as defined in section 1151 of title 10 18, United States Code, in which that activity takes 11 place.’’. 12 SEC. 203. SAFE HARBOR FOR MARIJUANA BROADCAST AD- 13 VERTISING. 14 (a) COMMUNICATIONS ACT OF 1934.—Section 309 of 15 the Communications Act of 1934 (47 U.S.C. 309) is 16 amended by adding at the end the following: 17 ‘‘(m) SAFE HARBOR FOR MARIJUANA BROADCAST 18 ADVERTISING.— 19 ‘‘(1) DEFINITIONS.—In this subsection— 20 ‘‘(A) the term ‘covered activity’ means the 21 production, possession, sale, distribution, dis- 22 pensation, administration, processing, or labora- 23 tory testing of marijuana; 24 VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 8 •S 421 IS ‘‘(B) the term ‘Indian country’ has the 1 meaning given the term in section 1151 of title 2 18, United States Code; 3 ‘‘(C) the term ‘Indian tribe’ has the mean- 4 ing given the term in section 4 of the Indian 5 Self-Determination and Education Assistance 6 Act (25 U.S.C. 5304); 7 ‘‘(D) the term ‘marijuana’ has the mean- 8 ing given the term in section 102 of the Con- 9 trolled Substances Act (21 U.S.C. 802); and 10 ‘‘(E) the term ‘media of mass communica- 11 tions’ has the meaning given the term in sub- 12 section (i)(3)(C). 13 ‘‘(2) SAFE HARBOR.—In determining whether 14 to grant an application for a license or permit (in- 15 cluding for the renewal of a license or permit) under 16 this section, the Commission shall not consider the 17 broadcast by any medium of mass communications 18 of any advertising or other information pertaining to 19 any aspect of a covered activity to be contrary to the 20 public interest, convenience, and necessity, if the 21 covered activity, and the advertising thereof, does 22 not violate the law of— 23 ‘‘(A) the State, or the Indian tribe that 24 has jurisdiction over the Indian country, in 25 VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 9 •S 421 IS which the transmission point of the subject me- 1 dium of mass communications is located; or 2 ‘‘(B) with respect to a radio or television 3 station, the State, or the Indian tribe that has 4 jurisdiction over the Indian country, in which 5 the station’s community of license is or is pro- 6 posed to be located.’’. 7 (b) CONTROLLED SUBSTANCES ACT.—Section 708 of 8 the Controlled Substances Act (21 U.S.C. 903), as amend- 9 ed by section 101, is amended— 10 (1) in subsection (a), by striking ‘‘subsection 11 (b)’’ and inserting ‘‘subsections (b) and (c)’’; 12 (2) in subsection (b), by striking ‘‘Notwith- 13 standing’’ and inserting ‘‘Subject to subsection (c) 14 and notwithstanding’’; and 15 (3) by adding at the end the following: 16 ‘‘(c) COMPLIANCE WITH STATE OR TRIBAL LAW RE- 17 LATING TO MARIJUANA BROADCAST ADVERTISING.— 18 ‘‘(1) IN GENERAL.—Except as provided in para- 19 graph (2) and notwithstanding any other provision 20 of law, the provisions of this title relating to mari- 21 juana shall not apply to the broadcast by any me- 22 dium of mass communications of any advertising or 23 other information pertaining to any aspect of a cov- 24 VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 10 •S 421 IS ered activity if the covered activity, and the adver- 1 tising thereof, does not violate the law of— 2 ‘‘(A) the State, or the Indian tribe that 3 has jurisdiction over the Indian country, in 4 which the transmission point of the subject me- 5 dium of mass communications is located; or 6 ‘‘(B) with respect to a radio or television 7 station, the State, or the Indian tribe that has 8 jurisdiction over the Indian country, in which 9 the station’s community of license is located. 10 ‘‘(2) BROADCASTS CALCULATED TO INDUCE 11 TRAVEL FROM NON-LEGAL JURISDICTIONS.—Para- 12 graph (1) shall not apply to the broadcast by any 13 medium of mass communications of any advertising 14 or other information pertaining to any aspect of a 15 covered activity that is calculated to induce residents 16 of a non-legal jurisdiction to travel to another State 17 or other area of Indian country to purchase mari- 18 juana. 19 ‘‘(d) DEFINITIONS.—For purposes of this section— 20 ‘‘(1) the term ‘covered activity’ means the pro- 21 duction, possession, sale, distribution, dispensation, 22 administration, processing, or laboratory testing of 23 marijuana; 24 VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 11 •S 421 IS ‘‘(2) the term ‘Indian country’ has the meaning 1 given the term in section 1151 of title 18, United 2 States Code; 3 ‘‘(3) the term ‘Indian tribe’ has the meaning 4 given the term in section 4 of the Indian Self-Deter- 5 mination and Education Assistance Act (25 U.S.C. 6 5304); 7 ‘‘(4) the term ‘media of mass communications’ 8 has the meaning given the term in section 9 309(i)(3)(C) of the Communications Act of 1934 (47 10 U.S.C. 309(i)(3)(C)); and 11 ‘‘(5) the term ‘non-legal jurisdiction’ means— 12 ‘‘(A) a State in which the purchase of 13 marijuana is prohibited under State law; or 14 ‘‘(B) Indian country in which the purchase 15 of marijuana is prohibited under the law of the 16 Indian tribe that has jurisdiction over the In- 17 dian country.’’. 18 SEC. 204. ACCESS TO BANKING. 19 (a) DEFINITIONS.—In this section— 20 (1) the term ‘‘Federal banking regulator’’ 21 means each of the Board of Governors of the Fed- 22 eral Reserve System, the Bureau of Consumer Fi- 23 nancial Protection, the Federal Deposit Insurance 24 Corporation, the Office of the Comptroller of the 25 VerDate Sep 11 2014 21:34 Feb 26, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S421.IS S421 pamtmann on DSKBFK8HB2PROD with BILLS 12 •S 421 IS Currency, the National Credit Union Administra- 1 tion, or any Federal agency or department that reg- 2 ulates banking or financial services, as determined 3 by the Secretary of the Treasury; 4 (2) the term ‘‘financial service’’ means a finan- 5 cial product or service as defined in section 1002 of 6 the Dodd-Frank Wall Street Reform and Consumer 7 Protection Act (12 U.S.C. 5481); 8 (3) the term ‘‘manufacturer’’ means a person 9 who manufactures, compounds, converts, processes, 10 prepares, or packages marijuana or marijuana prod- 11 ucts; and 12 (4) the term ‘‘producer’’ means a person who 13 plants, cultivates, harvests, or in any way facilitates 14 the natural growth of marijuana. 15 (b) SAFE H [Text truncated for display. 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