Sec. 4. Creation of Opportunity Trust Fund and imposition of tax on cannabis products
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Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 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). 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).
Amounts in the Trust Fund shall be available, without further appropriation, only as follows: 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. 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. 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 . 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 . .
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. . Section 5701 of the Internal Revenue Code of 1986 is amended by redesignating subsection
(h)as subsection
(i)and by inserting after subsection
(g)the following new subsection: 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. . Section 5702 of such Code is amended by adding at the end the following new subsection: Except as provided in paragraph (2), the term cannabis product means any cannabis or any article which contains cannabis or any derivative thereof. 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)). The term cannabis — 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 does not include— hemp, as defined in section 297A of the Agricultural Marketing Act of 1946; or 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. . Section 5702(c) of such Code is amended by striking and roll-your-own tobacco and inserting roll-your-own tobacco, and cannabis products . Section 5702 of such Code is amended by adding at the end the following new subsection: 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). Paragraph
(1)shall not apply with respect to any cannabis product which is for such person’s own personal consumption or use. 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. . Section 5702(l) of such Code is amended— by striking section 5701(a)(2) and inserting subsections (a)(2) and
(h)of section 5701 ; and by inserting after and cannabis products in the heading thereof. cigars Section 5702(j) of such Code is amended by adding at the end the following new sentence: In the case of a cannabis product, the previous sentence shall be applied by substituting . from a facility of a manufacturer required to file a bond under section 5711 for from the factory or from internal revenue bond under section 5704 . Except as otherwise provided in this subsection, the amendments made by this section shall apply to articles manufactured or imported in calendar quarters beginning more than one year after the date of the enactment of this Act. The amendments made by subsection
(a)shall take effect on the date of the enactment of this Act.