Marijuana Opportunity Reinvestment and Expungement Act of 2019
A BILL
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.
2. Decriminalization of cannabis
3. Demographic data of cannabis business owners and employees
4. Creation of Opportunity Trust Fund and imposition of tax on cannabis products
“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 tax imposed by section 5701(h).
“(c) Expenditures—Amounts in the Trust Fund shall be available, without further appropriation, only as follows:
“(1) 50 percent to the Attorney General to carry out section 3052(a) of part OO of the Omnibus Crime Control and Safe Streets Act of 1968.
“(2) 10 percent to the Attorney General to carry out section 3052(b) of part OO of the Omnibus Crime Control and Safe Streets Act of 1968.
“(3) 20 percent to the Administrator of the Small Business Administration to carry out section 5(b)(1) of the Marijuana Opportunity Reinvestment and Expungement Act of 2019.
“(4) 20 percent to the Administrator of the Small Business Administration to carry out section 5(b)(2) of the Marijuana Opportunity Reinvestment and Expungement Act of 2019.”
“(h) Cannabis products—On cannabis products, manufactured in or imported into the United States, there shall be imposed a tax equal to 5 percent of the price for which sold.”
“(q) Cannabis product
“(1) In general—Except as provided in paragraph (2), the term cannabis product means any cannabis or any article which contains cannabis or any derivative thereof.
“(2) Exception—The term cannabis product shall not include any medicine or drug that is a prescribed drug (as such term is defined in section 213(d)(3)).
“(3) Cannabis—The term cannabis—
“(A) means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin; and
“(B) 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.”
“(r) Manufacturer of cannabis products
“(1) In general—Any person who plants, cultivates, harvests, produces, manufactures, compounds, converts, processes, prepares, or packages any cannabis product shall be treated as a manufacturer of cannabis products (and as manufacturing such cannabis product).
“(2) Exception—Paragraph (1) shall not apply with respect to any cannabis product which is for such person’s own personal consumption or use.
“(3) Application of rules related to manufacturers of tobacco products—Any reference to a manufacturer of tobacco products, or to manufacturing tobacco products, shall be treated as including a reference to a manufacturer of cannabis products, or to manufacturing cannabis products, respectively.”
5. Opportunity trust fund programs
“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; and
“(B) no more than one-half of the employees assigned to the Cannabis Justice Office by term appointment that may after 2 years be converted to career appointment.
“(3) Legal counsel—At least one employee hired for the Cannabis Justice Office shall serve as legal counsel to the Director and shall provide counsel to the Cannabis Justice Office.
“(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.”
“OO Community Reinvestment Grant Program
“3052. Authorization
“(a) In general—The Director of the Cannabis Justice Office shall establish and carry out a grant program, known as the “Community Reinvestment Grant Program”, to provide eligible entities with funds to administer services for individuals most adversely impacted by the War on Drugs, including—
“(1) job training;
“(2) reentry services;
“(3) legal aid for civil and criminal cases, including expungement of cannabis convictions;
“(4) literacy programs;
“(5) youth recreation or mentoring programs; and
“(6) health education programs.
“(b) Substance use treatment services—The Community Reinvestment Grant Program established in subsection (a) shall provide eligible entities with funds to administer substance use treatment services for individuals most adversely impacted by the War on Drugs.
“3053. Funding from opportunity trust fund
“The Director shall carry out the program under this part using funds made available under section 9512(c)(1) and (2) of the Internal Revenue Code.
“3054. 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 12(2) of the Marijuana Opportunity Reinvestment and Expungement Act of 2019).
“(2) The term substance use treatment means an evidence-based, professionally directed, deliberate, and planned regimen including evaluation, observation, medical monitoring, harm reduction, and rehabilitative services and interventions such as pharmacotherapy, mental health services, and individual and group counseling, on an inpatient or outpatient basis, to help patients with substance use disorder reach remission and maintain recovery.
“(3) The term eligible entity means a nonprofit organization, as defined in section 501(c)(3) of the Internal Revenue Code, that is representative of a community or a significant segment of a community with experience in providing relevant services to individuals most adversely impacted by the War on Drugs in that community.
“(4) The term individuals most adversely impacted by the War on Drugs has the meaning given that term in section 5 of the Marijuana Opportunity Reinvestment and Expungement Act of 2019.”
6. Availability of Small Business Administration programs and services to cannabis-related legitimate businesses and service providers
“(ff) Cannabis-Related legitimate businesses and service providers—In this Act:
“(1) Cannabis—The term cannabis—
“(A) means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin; and
“(B) 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) 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 a State or a political subdivision of a State, as determined by such State or political sub-division; 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) Service provider—The term service provider—
“(A) means a business, organization, or other person that—
“(i) sells goods or services to a cannabis-related legitimate business; or
“(ii) provides any business services, including the sale or lease of real or any other property, legal or other licensed services, or any other 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.”
“(9) Services for cannabis-related legitimate businesses and service providers—A small business development center may not decline to provide services to an otherwise eligible small business concern under this section solely because such concern is a cannabis-related legitimate business or service provider.”
“(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 such concern is a cannabis-related legitimate business or service provider.”
“(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 such concern is a cannabis-related legitimate business or service provider.”
“(36) Loans to cannabis-related legitimate businesses and service providers—The Administrator may not decline to provide a guarantee for a loan under this subsection to an otherwise eligible small business concern solely because such concern is a cannabis-related legitimate business or service provider.”
“(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 borrower solely because such borrower is a cannabis-related legitimate business or service provider.”
“(14) Assistance to cannabis-related legitimate businesses and service providers—An eligible intermediary may not decline to provide assistance under this subsection to an otherwise eligible borrower solely because such borrower is a cannabis-related legitimate business or service provider.”
“511. Loans to cannabis-related legitimate businesses and service providers
“The Administrator may not decline to provide a guarantee for a loan under this title to an otherwise eligible State or local development company solely because such State or local development company provides financing to an entity that is a cannabis-related legitimate business or service provider (as defined in section 3(ff) of the Small Business Act).”