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.

(h) 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.

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.

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.

b.

the identity of the contents by species and variety;

the name and place of business of the processor;

(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 labeling.

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.

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

8.

such form and amount as he may prescribe to insure compliance with the terms of the license and the provisions of this chapter.

9. It shall be unlawful for the holder of a processing license to distribute cannabis to any person not holding a current license issued by authority of this Act.

10. No holder of a processing license shall affix the tax stamps or such other documentation that the Secretary may require pursuant to subsection (4) to any package containing cannabis which contains a dilutant, retardant or

accellerator, preservative or any additive of any kind, the effect whereof is to reduce the purity of cannabis to less that 100%.

11. A processing licensee who takes possession of processed cannabis imported into the United States shall comply with all requirements set forth in this subsection.

12. It shall be unlawful for any person to alter, mutilate, destroy, obliterate or remove any mark, brand or label upon cannabis held for distribution in interstate or foreign commerce or after shipment therein, except as authorized by federal law or except pursuant to regulations of the Secretary authorizing relabeling for purposes of compliance with the requirements of this chapter.

(c) Commercia¡ trading.

1. The Secretary shall issue trade licenses to any person meeting the qualifications of 5922 for the sale of cannabis at retail.

2. It shall be unlawful for the holder of a trade license to sell, offer for sale or otherwise transfer with consideration to any person who has not reached the age of 18 years or who is intoxicated.

3.

Before any license required by this section is granted to a trader, the Secretary may require a bond on such form and amount as he may prescribe to insure compliance with the terms of the license and the provisions of this chapter. (d) Research license. The Secretary shall issue research licenses for the conduct of bona fide medical, social, behavioral or other research upon such terms and conditions as he shall prescribe consistent with the purposes of this Act as set forth in 5902.

SUBCHAPTER D REVENUE

5931. Imposition of Tax. The licensed processor shall remit

to the Secretary on a quarterly basis 90% of gross receipts from the sale of cannabis. For the purposes of this provision, gross receipts shall include all consideration therefor, whether received by the processor or not.

5932.

Liability. determination and method of payments. (a) Liability for tax. The holder of a processing license shall be liable for the taxes imposed thereon by section 5931.

(b) Determination and method of payment. The taxes imposed by 5931 shall be determined at the time of removal of the cannabis from the processor's premises. Such taxes shall be paid on the basis of a return. The secretary shall, by regulation, prescribe the period or event for which such return shall be made, the information to be furnished, the time for making the return, and the time for payment of such taxes. Any postponement under this subsection of the payment of taxes determined at the time of removal may be conditioned upon the filing of such additional bonds, and upon compliance with such requirements, as the secretary may require. All administrative and penal provisions of this title, insofar as applicable, shall apply to any tax imposed by 5931.

(c) Use of government depositaries.

The secretary may

authorize Federal Reserve banks, and incorporated banks or trust companies which are depositaries or financial agents of the United States, to receive any tax imposed by this chapter, in such manner, at such times, and under such conditions as he may prescribe; and he shall prescribe the manner, time and condition under which the receipt of such tax by such banks and trust companies is to be treated as payment for tax purposes.

(d) Assessment. Whenever any tax required to be paid by this chapter is not paid in full at the time required for such payment, it shall be the duty of the secretary, subject to the limitations prescribed in this chapter, on proof satisfactory to him, to determine the amount of tax to be paid which has been omitted, and to make an assessment there for against the person liable for the tax. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required. Except in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathmatical error, no such assessment shall be made until and after the person liable for the tax has afforded reasonable notice and opportunity to show cause, in writing, against such assessment.