Sec. 211. Federal marijuana administration
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The Federal Alcohol Administration Act ( 27 U.S.C. 201 et seq.) is amended by adding at the end the following: It shall be unlawful, except pursuant to a permit issued under this title by the Secretary of the Treasury (hereinafter in this title referred to as the Secretary )— to engage in the business of importing marijuana into the United States; or 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, marijuana so imported.
It shall be unlawful, except pursuant to a permit issued under this title by the Secretary— to engage in the business of cultivating, producing, manufacturing, packaging, or warehousing marijuana; or 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, marijuana so cultivated, produced, manufactured, packaged, or warehoused. It shall be unlawful, except pursuant to a permit issued under this title by the Secretary— to engage in the business of purchasing marijuana for resale at wholesale; or 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, marijuana so purchased.
Whoever violates this section shall be fined not more than $1,000. The Secretary may decide not to refer a violation of this section to the Attorney General for prosecution but instead to collect a payment from the violator of no more than $500 for that violation. The Attorney General may, in a civil action, obtain appropriate relief to prevent and restrain a violation of this title. The Secretary shall issue a permit for operations requiring a permit under section 301 unless the Secretary finds that— the applicant (or if the applicant is a corporation, any of its officers, directors, or principal stockholders) has been convicted of a disqualifying offense; the applicant is, by reason of business experience, financial standing, or trade connections, not likely to commence operations within a reasonable period or to maintain such operations in conformity with Federal law; or 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.
For the purposes of paragraph (1)— Except as provided in subparagraph
(B)a disqualifying offense is an offense related to the production, consumption, or sale of marijuana that is— a felony under Federal or State law, if the conviction occurred not later than 5 years before the date of the application; or a misdemeanor under Federal law, if the conviction occurred not later than 3 years before the date of the application. A disqualifying offense does not include a Federal or State offense based on conduct that— was legal under State law in the State when and where the conduct took place; or is, as of the date of the application, no longer an offense in that State. 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. The Secretary shall— prescribe the manner and form of applications for permits under this title (including the facts to be set forth in the application); prescribe the form of such permits; specify in any permit the authority conferred by the permit and the conditions of that permit in accordance with this title. 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 marijuana, and with respect to the various classes of persons entitled to permits under this title. The issuance of a permit under this title does not deprive the United States of any remedy for a violation of law. A permit under this title shall be conditioned upon— compliance with all other Federal laws relating to production, sale and consumption of marijuana, as well as compliance with all State laws relating to said activities in the State in which the permit applicant resides and does business; and 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 marijuana regulation by the Federal Government. After due notice and opportunity for hearing, the Secretary may order a permit under this title— 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; 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 annulled if the Secretary finds that the permit was procured through fraud, or misrepresentation, or concealment of material fact. The order shall state the findings which are the basis for the order. Each order of the Secretary with respect to any denial of application, suspension, revocation, annulment, or other proceedings, shall be served— 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 by mailing the order by registered mail, addressed to the applicant or respondent at his last known address in the records of the Secretary. 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. 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. For the purposes of this section, the term transfer means any change of ownership or control, whether voluntary or by operation of law. 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. 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. 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. In this title— the term marijuana has the meaning given the term marihuana in section 102 of the Controlled Substances Act ( 21 U.S.C. 802 ); and the term State includes the District of Columbia, Puerto Rico, and any territory or possession of the United States. .
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