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of value contemporaneously with the sale or tendering for sale of any goods, services or other things of value, shall be deemed not gratuitous.

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(a) The Secretary of the Treasury shall enforce this chapter.

(b) The Secretary is authorized and directed to prescribe such rules and regulations as may be necessary to carry out the provisions of this chapter. (c) The Secretary is authorized to require in such manner and form as shall be prescribed, such reports as are necessary to carry out his powers or duties.

(d) Not later than March 1 of each year following the effective date of this chapter, the Secretary shall submit to the Speaker of the House of Representatives and the President of the Senate a comprehensive and detailed written report with respect to the cultivaiton, processing, storage, handling and distribution of cannabis subject to the provisions of this chapter, the inspection of establishments operated in connection therewith and recommendations for legislation to improve the regulation of cannabis. (e) The Secretary shall by regulation prescribe the type or kinds of containers which may be used to contain, store, transfer, convey, remove or withdraw cannabis prior to packing for sale at retail.

(f) In carrying out his duties precribed by this chapter, the Secretary shall consult with the Secretary of Health and Human Services in order to further the purposes of this chapter.

SUBCHAPTER C

LICENSES

5921.

Unlawful businesses.

(a) It shall be unlawful, except pursuant to a license issued under this chapter by the Secretary, and in compliance with the regulations promulgated under the author ity of this chapter;

1.

to cultivate cannabis for other personal use ;

2.

to process cannabis for other than for personal use

to distribute cannabis for consideration to any

3. person

4. to possess, cultivate or process cannabis with intent to distribute for consideration to any person ;

5. to otherwise be engaged in commerce in cannabis for consideration.

(b) As used in this section, and Section 5962, "personal use" means the use or consumption of cannabis by a person or members of his immediate household and donees. The possession of in excess of the greater of

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shall raise a rebuttable presumption that possession is not for personal use.

(c) Notwithstanding the foregoing, nothing herein shall be construed to authorize commerce in hash ish or resin extracted from the cannabis plant.

5922.

License requirements and qualifications.

(a) Applications for license. Every person, before commencing business as a cultivator, processor or trader of cannabis, and at such other time as the Secretary shall by regulation prescribe, shall make application for and obtain the appropriate license prescribed by this subsection. The application shall be in such form as the Secretary shall prescribe and shall set forth, truthfully and accurately, the information called for on the form. Applications shall not be denied unless the Secretary or his designee finds by a preponderance of the evidence following notice and a hearing, that such applicant has failed to disclose any material information required or made any material false statement in the application therefor; provided, however, that no license under this chapter shall be issued to any applicant who has not reached the age of 21 years. (b) Conviction of any cannabis-related offense under state or federal law, prior to the effective date of this Act, shall not disqualify any applicant. (c) Cannabis licenses issued pursuant to this chapter shall expire upon the 2nd anniversary of the issuance thereof, unless renewed.

(d) The surviving spouse or legal representative of a deceased noncorporate licensee may continue to exercise the license for 30 days following the death of the licensee, but thereafter only with the written consent of the Secretary,

which consent shall expire, if not sooner revoked, 15 months from the date of death. Consent shall be withheld unless the said surviving spouse or legal representative meets the qualifications prescribed by this chapter for the type of license ought to be retained.

(e) The Secretary, his agents and employees, may, during reasonable business hours and without notice thereof, conduct such inspections of the licensed premises, including the books, records and accounts of the licensee, as he shall deem appropriate for the enforcement of this chapter. (f) Appeals. Any person aggrieved by an action of the Secretary shall have such recourse as provided in the Act of September 6, 1966, P.L. 89-554, as amended (Title 5, United States Code, Section 551 et seq. and Section 701 et. seq.)

(g) Sale or distribution of cannabis by vending machine or similar automation is prohibited.

ch) No license issued under this chapter shall be transferrable to any other person, except in accordance with the subsection (d) of this section concerning death of the licensee.

5923. Exemptions. The prohibitions contained in sections 5921 (a) (4) and 5921 (a) (5) shall not apply to a common carrier or freight forwarder for hire.

5924. Commercial cultivation processing and trading of cannabis.

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1. The Secretary shall issue cultivation licenses to any person who shall meet the requirements prescribed in 5922 of this chapter.

2. The holding of a commercial cultivation license shall be conditional upon the compliance with this chapter and the regulations promulgated hereunder.

3. It shall be unlawful for the holder of a commercial cultivation license to distribute cannabis commercially to any person not holding a current license issued by authority of this chapter. A copy of the license bearing the seal of the Secretary shall constitute prima facie evidence of such license. Except in case of conspiracy or accomplice liability, holders of a commercial cultivation license shall not be liable for the acts of transferees in violation of this chapter. For purposes of this provision, transfer is accomplished when the cultivator makes physical delivery of

the cannabis, despite any reservation of a security interest or delivery of a document of title at a different time or place.

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1.

The Secretary shall issue processing licenses to any person who shall meet the requirements prescribed in section 5922 of this chapter.

2. The holding of a processing license shall be conditional upon compliance with this chapter and the regulations promulgated hereunder.

3.

No person licensed to process shall distribute packaged cannabis if the package fails to bear a permanent label containing the following information, in such style and form as the Secretary may prescribe:

a.

the identity of the contents by species and variety;

b.

the name and place of business of the processor;

the following statements:

(i) "Caution: Smoking any substance irritates the mouth, throat, breathing passages and lungs, and may be harmful to other organs. Inexperience or overdose may cause confusion or disorientation. Do not use around or when operating hazardous equipment. Do not use during pregnancy. The operation of a motor vehicle under the influence of cannabis, alcohol, or any other intoxicant is a serious crime, and may result in the loss of your license to drive."

d.

the net quantity of contents in terms of dry weight by grams;

e. potency as expressed as the percentage of THC by dry weight, without seeds;

f. such marking or branding as shall prevent deception of the consumer with respect to the contents of the quality thereof.

4. The Secretary shall promulgate regulations concerning the labelling of cannabis:

a.

to prohibit deception of the consumer with respect to such cannabis or the quantity thereof and to prohibit, irrespective of falsity, such statements relating to age , cultivation processes, analyses, guarantees and scientific or irrelevant matters as the Secretary finds to be likely to mislead the consumers;

b. to prohibit statements on the label that are disparaging of a competitor's products or are false, misleading, obscene or indecent;

c. to prevent deception of the consumer by use of a trade or brand name of any living individual of public prominence, or existing private or public organization, or is a name that is in imulation or is an abbreviation thereof, and to prevent the use of a graphic, pictorial or emblematic representation of any such individual or organization, if the use of such name or representative is likely to lead the consumer to believe that the product has been endorsed, made or used by, or produced for, or under the supervision of, or in accordance with the specifications of, such individual or organization. This clause shall not apply to the use of the name of any person engaged in business as a cultivator, processor, distributor, importer or retailer of cannabis, nor to the use by any person of a trade or brand name used by him or his predecessor in interest prior to the effective date of this chapter. This clause shall not apply to regulations requiring, at the time of release from customs custody, certificates issued by foreign governments covering origin, age, and identity of imported cannabis. Provided further, that nothing herein, nor any decision, ruling, or regulation of any department of the Government shall deny the right of any peron to sue any trade name or brand of foreign origin not presently effectively registered in the United States Patent and Trademark Office which has been used by such person or predecessor in the United States for a period of at least five years last past, if the use of such name or brand is qualified by the name of the locality in the United States in which the product is produced, and, in the case of the use of such name or brand on any label or in any advertisement, if such qualifications is as conspicuous as such name or brand.

5. It shall be the duty of processing licensees to analyze and test cannabis intended for distribution and to determine potency of such cannabis for the purpose of Tabeling.

6. It shall be unlawful for any processing licensee to distribute or commercially possess for more that 24 hours any package containing cannabis which fails to bear a tax stamp or such other documentation as the Secretary may prescribe as evidence that the revenue imposed by this chapter has been paid.

7. The provisions of subsections 3, 4, and 5, shall not apply in the case of transfer of unpackaged cannabis between licensed processors.

8. Before any license required by this section is granted to a processor, the Secretary may require a bond in

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