Responsibly Addressing the Marijuana Policy Gap Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 1119 To amend the Controlled Substances Act to reduce the gap between Federal and State marijuana policy, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 8, 2019 Mr. BLUMENAUER introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committees on En- ergy and Commerce, Ways and Means, Financial Services, Natural Re- sources, Education and Labor, Veterans’ Affairs, and Oversight and Re- form, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 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 VerDate Sep 11 2014 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 1119 IH (b) TABLE OF CONTENTS.—The table of contents for 1 this Act is as follows: 2 Sec. 1. Short title; table of contents. Sec. 2. Definitions. 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. Sec. 208. Principal trade negotiating objective regarding marijuana, marijuana derivatives, and marijuana products. 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. 3 In this Act— 4 (1) the term ‘‘depository institution’’ means— 5 VerDate Sep 11 2014 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 1119 IH (A) a depository institution as defined in 1 section 3(c) of the Federal Deposit Insurance 2 Act (12 U.S.C. 1813(c)); 3 (B) a Federal credit union as defined in 4 section 101 of the Federal Credit Union Act 5 (12 U.S.C. 1752); or 6 (C) a State credit union as defined in sec- 7 tion 101 of the Federal Credit Union Act (12 8 U.S.C. 1752); 9 (2) the term ‘‘Indian country’’ has the meaning 10 given the term in section 1151 of title 18, United 11 States Code; 12 (3) the term ‘‘Indian tribe’’ has the meaning 13 given the term in section 4 of the Indian Self-Deter- 14 mination and Education Assistance Act (25 U.S.C. 15 5304); 16 (4) the term ‘‘marijuana’’ has the meaning 17 given the term in section 102 of the Controlled Sub- 18 stances Act (21 U.S.C. 802), as amended by section 19 401(d) of this Act; 20 (5) the term ‘‘marijuana derivative’’ means any 21 marijuana product that is not a naturally grown and 22 unadulterated marijuana flower product; 23 VerDate Sep 11 2014 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 1119 IH (6) the term ‘‘marijuana product’’ means any 1 article that contains marijuana or any marijuana de- 2 rivative; 3 (7) the term ‘‘marijuana-related business’’ 4 means a manufacturer, producer, or any person 5 that— 6 (A) participates in any business or orga- 7 nized activity that involves handling marijuana 8 or marijuana products, including selling, trans- 9 porting, displaying, dispensing, or distributing 10 marijuana or marijuana products; and 11 (B) engages in such activity pursuant to a 12 law established by a State, a unit of local gov- 13 ernment, or an Indian tribe that has jurisdic- 14 tion over the Indian country in which the activ- 15 ity occurs; and 16 (8) the term ‘‘State’’ means each of the several 17 States, the District of Columbia, Puerto Rico, and 18 any territory or possession of the United States. 19 VerDate Sep 11 2014 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 1119 IH TITLE I—FEDERALISM IN 1 MARIJUANA POLICY 2 SEC. 101. ELIMINATION OF CRIMINAL PENALTIES FOR CER- 3 TAIN PERSONS COMPLYING WITH STATE 4 LAW. 5 Section 708 of the Controlled Substances Act (21 6 U.S.C. 903) is amended— 7 (1) by striking ‘‘No provision’’ and inserting 8 the following: 9 ‘‘(a) IN GENERAL.—Except as provided in subsection 10 (b), no provision’’; and 11 (2) by adding at the end the following: 12 ‘‘(b) COMPLIANCE WITH STATE LAW.—Notwith- 13 standing any other provision of law, the provisions of this 14 title relating to marihuana shall not apply to any person 15 acting in compliance with State law or the law of the In- 16 dian tribe that has jurisdiction over the Indian country, 17 as defined in section 1151 of title 18, United States Code, 18 where the conduct occurs relating to— 19 ‘‘(1) the production, possession, distribution, 20 dispensation, administration, laboratory testing, or 21 delivery of marihuana; or 22 ‘‘(2) the provision of ancillary services related 23 to the activities described in paragraph (1), such as 24 legal representation, payment processing, adver- 25 VerDate Sep 11 2014 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 1119 IH tising, security services, scientific and safety testing, 1 or property leasing.’’. 2 TITLE II—REMOVING BUSINESS 3 AND BANKING BARRIERS 4 SEC. 201. ALLOWANCE OF DEDUCTIONS AND CREDITS RE- 5 LATING TO EXPENDITURES IN CONNECTION 6 WITH MARIJUANA SALES CONDUCTED IN 7 COMPLIANCE WITH STATE LAW. 8 (a) SHORT TITLE.—This section may be cited as the 9 ‘‘Small Business Tax Equity Act of 2019’’. 10 (b) ALLOWANCE.—Section 280E of the Internal Rev- 11 enue Code of 1986 is amended by inserting before the pe- 12 riod at the end the following: ‘‘, unless such trade or busi- 13 ness consists of marijuana sales conducted in compliance 14 with State law or the law of the Indian tribe, as defined 15 in section 4 of the Indian Self-Determination and Edu- 16 cation Assistance Act (25 U.S.C. 5304), that has jurisdic- 17 tion over the Indian country, as defined in section 1151 18 of title 18, where the trade or business is conducted’’. 19 (c) EFFECTIVE DATE.—The amendment made by 20 this section shall apply with respect to taxable years end- 21 ing after the date of the enactment of this Act. 22 VerDate Sep 11 2014 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 1119 IH SEC. 202. MARIJUANA PRINT ADVERTISING. 1 (a) SHORT TITLE.—This section may be cited as the 2 ‘‘Marijuana Advertising In Legal States Act’’ or the 3 ‘‘MAILS Act’’. 4 (b) MARIJUANA PRINT ADVERTISING.—Section 5 403(c)(1) of the Controlled Substances Act (21 U.S.C. 6 843(c)(1)) is amended by adding at the end the following: 7 ‘‘This paragraph does not apply to an advertisement to 8 the extent that the advertisement relates to an activity, 9 involving marihuana, that is in compliance with the law 10 of the State or the law of the Indian tribe, as defined in 11 section 4 of the Indian Self-Determination and Education 12 Assistance Act (25 U.S.C. 5304), that has jurisdiction 13 over the Indian country, as defined in section 1151 of title 14 18, United States Code, in which that activity takes 15 place.’’. 16 SEC. 203. SAFE HARBOR FOR MARIJUANA BROADCAST AD- 17 VERTISING. 18 (a) COMMUNICATIONS ACT OF 1934.—Section 309 of 19 the Communications Act of 1934 (47 U.S.C. 309) is 20 amended by adding at the end the following: 21 ‘‘(m) SAFE HARBOR FOR MARIJUANA BROADCAST 22 ADVERTISING.— 23 ‘‘(1) DEFINITIONS.—In this subsection— 24 ‘‘(A) the term ‘covered activity’ means the 25 production, possession, sale, distribution, dis- 26 VerDate Sep 11 2014 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 1119 IH pensation, administration, processing, or labora- 1 tory testing of marijuana; 2 ‘‘(B) the term ‘Indian country’ has the 3 meaning given the term in section 1151 of title 4 18, United States Code; 5 ‘‘(C) the term ‘Indian tribe’ has the mean- 6 ing given the term in section 4 of the Indian 7 Self-Determination and Education Assistance 8 Act (25 U.S.C. 5304); 9 ‘‘(D) the term ‘marijuana’ has the mean- 10 ing given the term in section 102 of the Con- 11 trolled Substances Act (21 U.S.C. 802); and 12 ‘‘(E) the term ‘media of mass communica- 13 tions’ has the meaning given the term in sub- 14 section (i)(3)(C). 15 ‘‘(2) SAFE HARBOR.—In determining whether 16 to grant an application for a license or permit (in- 17 cluding for the renewal of a license or permit) under 18 this section, the Commission shall not consider the 19 broadcast by any medium of mass communications 20 of any advertising or other information pertaining to 21 any aspect of a covered activity to be contrary to the 22 public interest, convenience, and necessity, if the 23 covered activity, and the advertising thereof, does 24 not violate the law of— 25 VerDate Sep 11 2014 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 9 •HR 1119 IH ‘‘(A) the State, or the Indian tribe that 1 has jurisdiction over the Indian country, in 2 which the transmission point of the subject me- 3 dium of mass communications is located; or 4 ‘‘(B) with respect to a radio or television 5 station, the State, or the Indian tribe that has 6 jurisdiction over the Indian country, in which 7 the station’s community of license is or is pro- 8 posed to be located.’’. 9 (b) CONTROLLED SUBSTANCES ACT.—Section 708 of 10 the Controlled Substances Act (21 U.S.C. 903), as amend- 11 ed by section 101, is amended— 12 (1) in subsection (a), by striking ‘‘subsection 13 (b)’’ and inserting ‘‘subsections (b) and (c)’’; 14 (2) in subsection (b), by striking ‘‘Notwith- 15 standing’’ and inserting ‘‘Subject to subsection (c) 16 and notwithstanding’’; and 17 (3) by adding at the end the following: 18 ‘‘(c) COMPLIANCE WITH STATE OR TRIBAL LAW RE- 19 LATING TO MARIJUANA BROADCAST ADVERTISING.— 20 ‘‘(1) IN GENERAL.—Except as provided in para- 21 graph (2) and notwithstanding any other provision 22 of law, the provisions of this title relating to mari- 23 juana shall not apply to the broadcast by any me- 24 dium of mass communications of any advertising or 25 VerDate Sep 11 2014 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 10 •HR 1119 IH other information pertaining to any aspect of a cov- 1 ered activity if the covered activity, and the adver- 2 tising thereof, does not violate the law of— 3 ‘‘(A) the State, or the Indian tribe that 4 has jurisdiction over the Indian country, in 5 which the transmission point of the subject me- 6 dium of mass communications is located; or 7 ‘‘(B) with respect to a radio or television 8 station, the State, or the Indian tribe that has 9 jurisdiction over the Indian country, in which 10 the station’s community of license is located. 11 ‘‘(2) BROADCASTS CALCULATED TO INDUCE 12 TRAVEL FROM NON-LEGAL JURISDICTIONS.—Para- 13 graph (1) shall not apply to the broadcast by any 14 medium of mass communications of any advertising 15 or other information pertaining to any aspect of a 16 covered activity that is calculated to induce residents 17 of a non-legal jurisdiction to travel to another State 18 or other area of Indian country to purchase mari- 19 juana. 20 ‘‘(d) DEFINITIONS.—For purposes of this section— 21 ‘‘(1) the term ‘covered activity’ means the pro- 22 duction, possession, sale, distribution, dispensation, 23 administration, processing, or laboratory testing of 24 marijuana; 25 VerDate Sep 11 2014 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 11 •HR 1119 IH ‘‘(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 18:25 Mar 05, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1119.IH H1119 pamtmann on DSKBFK8HB2PROD with BILLS 12 •HR 1119 IH 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) t [Text truncated for display. Full text available on Congress.gov.]