H.R. 2934 — STATES 2.0 Act

This section states congressional findings on varying state approaches to legal cannabis regulation, the need for federal oversight of interstate cannabis commerce to curb illicit trade, the dominance of the illicit marijuana market (75% of the known market), the effects of excessive taxation (making legal products two to three times more expensive than illegal ones), the harms of the current federal punitive tax structure, requirements for a federal regulatory program (including administration, consumer safety, and enforcement funded by a low federal excise tax on users to avoid compounding state taxes), and public safety benefits of state legalization.

This section states the sense of Congress that the Food and Drug Administration should support self-determination and self-government by Indian tribes (as defined in section 102 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5130)), as well as such tribes' treaty rights, with respect to the regulation of marijuana.

This section establishes exemptions from the Controlled Substances Act (CSA) for marijuana manufactured, produced, possessed, distributed, dispensed, administered, or delivered in compliance with state law (subsection (a)) or the law of a federally recognized Indian tribe within its jurisdiction in Indian country, as defined in 18 U.S.C. 1151 (i.e., all land within any Indian reservation under U.S. jurisdiction, all dependent Indian communities within U.S. borders, and all Indian allotments with unextinguished titles), if located in a state permitting such activities (subsection (b)). It further exempts interstate transportation or shipment of marijuana between permitting states or tribal territories (subsection (c)(2)) and prohibits states or tribes from blocking such transportation through their territory, subject to reasonable time, place, manner, public health, and safety restrictions (subsection (c)(1)). The exemptions do not apply to CSA provisions on manufacturing or distribution creating substantial risk of death or serious bodily injury (sections 401(a)(1) as to 409 or 418, 409, 417, and 418) (subsection (d)) or to persons violating the CSA with respect to non-marijuana controlled substances, state or tribal marijuana laws, or employing persons under 18 years of age (subsection (e)). (Thus, federal prohibitions remain on particularly hazardous marijuana activities and child labor in marijuana operations.) This section deems compliant marijuana a substance not meeting CSA scheduling requirements (subsection (f)(1)) and directs the Attorney General to finalize a rulemaking under CSA section 201(a)(2) executing this change not later than 180 days after enactment (subsection (f)(2)).

This section establishes an exception to the enhanced penalties under 21 U.S.C. 849 for distributing or possessing with intent to distribute controlled substances within 1,000 feet of a truck stop or safety rest area (i.e., doubles maximum punishment and supervised release for a first offense; triples them for subsequent offenses). The exception applies to any person possessing or possessing with intent to distribute marijuana in compliance with section 710. (Thus, such persons are subject only to standard penalties under 21 U.S.C. 841(b).)

This section establishes an exception to the enhanced penalties under 21 U.S.C. 859(a) and (b)—which double maximum punishments and supervised release terms for a first offense and triple them for a second or subsequent offense of distributing a controlled substance to a person under 21 (with a one-year minimum imprisonment term, except for 5 grams or less of marihuana)—for any person at least 18 years of age who distributes medicinal marijuana to a person under 21 in compliance with section 710. (Thus, such compliant distributions are not subject to the doubled or tripled penalties otherwise applicable to adults distributing drugs to minors.)

This section defines a "marijuana product" as any product made or derived from marijuana (as defined in the Controlled Substances Act) intended for human or animal consumption, including marijuana components (except non-marijuana raw materials used in manufacturing), and establishes Food and Drug Administration (FDA) regulatory authority over such products under the Federal Food, Drug, and Cosmetic Act (FD&C Act). It (1) treats marijuana products meeting the definition of a drug or cosmetic as drugs or cosmetics, respectively, under the FD&C Act; (2) grants the Secretary of Health and Human Services, through the FDA Commissioner, the same authorities to regulate marijuana products that are food or dietary supplements as FDA has for food containing alcohol; (3) authorizes marketing of other marijuana products pursuant to FDA regulations to be issued within 180 days of enactment, which require contaminant testing, manufacturing practices, and marketing practices and postmarket reporting (with special attention to preventing youth consumption) but prohibit premarket approval; and (4) deems marijuana products marketed in combination with a drug, biological product, device, tobacco product, or alcohol product to be adulterated under the FD&C Act.

This section directs the Comptroller General of the United States to conduct a study on the effects of marijuana legalization on traffic safety, including assessments of (1) traffic crashes, fatalities, and injuries in states that have legalized marijuana and their ability to evaluate marijuana impairment; (2) state actions and challenges in addressing marijuana-impaired driving; (3) state testing standards and scientific methods for determining impairment; and (4) federal initiatives to assist such states, with recommendations for National Highway Traffic Safety Administration policies and programs. The Comptroller General must submit a report on the study to the appropriate congressional committees not later than one year after the date of enactment of this Act.

This section establishes a rule of construction providing that conduct in compliance with this Act and its amendments (1) is not unlawful; (2) does not constitute trafficking in a controlled substance under section 401 of the Controlled Substances Act (CSA, 21 U.S.C. 841) or any other provision of law; (3) does not serve as a basis for forfeiture under CSA section 511 (21 U.S.C. 881) or 18 U.S.C. 981; and (4) is not subject to IRC section 280E (26 U.S.C. 280E) (i.e., denial of deductions for businesses trafficking in controlled substances). The section further specifies that proceeds from such compliant transactions are not proceeds of an unlawful activity under 18 U.S.C. 1956 or 1957 or any other provision of law. (Thus, compliant entities are shielded from civil forfeiture of assets under 18 U.S.C. 981(a)(1)—which targets property involved in money laundering or traceable to specified offenses including foreign controlled substance violations—and from money laundering charges.)