SEC. 2559. REGULATIONS.

(a) MAKING AND PUBLISHING.-The Secretary shall make, prescribe, and publish all needful rules and regulations for carrying the provisions of this subchapter and part of subchapter Å of chapter 27 into effect.

(b) CROSS REFERENCE.

For authority of the Secretary to delegate such powers and duties, see subchapter D [section 2606].

SEC. 2560. PERSONNEL.

(a) APPOINTMENT.-The Secretary is authorized to appoint such agents, deputy collectors, inspectors, chemists, assistant chemists, clerks, and messengers in the field and in the Bureau of Internal Revenue in the District of Columbia as may be necessary to enforce the provisions of this subchapter and part V of subchapter A of chapter 27.

(b) CROSS REFERENCE.

For authority of the Secretary to delegate such powers and duties, see subchapter D [section 2606].

SEC. 2561. LAWS UNAFFECTED.

Nothing contained in this subchapter or part V of subchapter A of chapter 27 shall be construed to impair, alter, amend, or repeal any of the provisions of the act of Congress approved June 30, 1906, entitled "An Act for preventing the manufacture, sale, or transportation of adulterated or misbranded, or poisonous, or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes," c. 3915, 34 Stat. 768 (U. S. C., Title 21, §§ 1–15), and any amendment thereof, or of the act approved February 9, 1909, entitled "An Act to prohibit the importation and use of opium for other than medicinal purposes," c. 100, 35 Stat. 614 (U. S. C., Title 21, §§ 171-185), and any amendment thereof.

[The act of June 30, 1906, here referred to was repealed by the act of June 25, 1938 (52 Stat. 1059, § 902 (a)), effective June 25, 1939.]

SEC. 2562. OTHER LAWS APPLICABLE.

(a) GENERAL.-All administrative, special, or stamp provisions of law, including the law relating to the assessment of taxes, so far as applicable, shall be extended to and made a part of this subchapter and sections 3220, 3221, 3222, and subsection (a) of section 3224 of chapter 27.

(b) CROSS REFERENCE.

For provisions making applicable the internal revenue laws relating to the engraving, issuance, sale, accountability, cancellation, and destruction of tax-paid stamps, see subsection (b) of section 2552.

SEC. 2563. TERRITORIAL EXTENT OF LAW.

The provisions of this subchapter and part V of subchapter A of chapter 27 shall apply to the United States, the District of Columbia, the Territory of Alaska, the Territory of Hawaii, the insular possessions of the United States, and the Canal Zone.

[For exceptions to applicability of section 2563, see section 2554 (c).]

SEC. 2564. ADMINISTRATION IN INSULAR POSSESSIONS AND CANAL

ZONE.

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*.-In Puerto Rico (a) PUERTO RICO the administration of this subchapter and part V of subchapter A of chapter 27, the collection of the special tax imposed by section 3220 of chapter 27, and the issuance of the order forms specified in section 2554 shall be performed by the appropriate internal revenue officers of those governments, and all revenues collected thereunder in Puerto Rico * * * shall accrue intact to the general governments thereof, respectively.

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(b) CANAL ZONE. -The President is authorized and directed to issue such Executive orders as will carry into effect in the Canal Zone the intent and purpose of this subchapter and part V of subchapter A of chapter 27 by providing for the registration and the imposition of a special tax upon all persons in the Canal Zone who produce, import, compound, deal in, dispense, sell, distribute, or give away opium or coca leaves, their salts, derivatives, or preparations.

(c) VIRGIN ISLANDS.

For authority of the President to exempt persons in the Virgin Islands from the order form requirements, see subsection (b) of section 2554. [For exceptions to applicability of section 2564, see section 2554 (c).] SEC. 2565. DEFINITIONS.

For definitions of the following, see the subsections of section 3228 indicated below:

Person, subsection (a).

Importer, manufacturer, or producer, subsection (b).

Wholesale dealer, subsection (c).

Retail dealer, subsection (d).

Isonipecaine, subsection (e).

Opiate, subsection (f).

SUBCHAPTER B-OPIUM FOR SMOKING

SEC. 2567. TAX.

(a) RATE. An internal revenue tax of $300 per pound shall be levied and collected upon all opium manufactured in the United States for smoking purposes.

(b) How PAID.

(1) STAMPS.-All opium prepared for smoking manufactured in the United States shall be duly stamped in such a permanent manner as to denote the payment of the internal revenue tax thereon.

(2) ASSESSMENT.

For assessment in case of omitted taxes payable by stamp, see section 3311 of chapter 28 and section 3640 of chapter 35.

SEC. 2568. STAMPS.

The provisions of law covering the engraving, issue, sale, accountability, effacement, cancellation, and the destruction of stamps relating to tobacco and snuff, as far as applicable, shall apply to stamps provided for by paragraph (1) of subsection (b) of the preceding section.

SEC. 2569. MANUFACTURERS.

(a) DEFINITION.-Every person who prepares opium suitable for smoking purposes from crude gum opium, or from any preparation

thereof, or from the residue of smoked or partially smoked opium, commonly known as yen shee, or from any mixture of the above, or any of them, shall be regarded as a manufacturer of smoking opium within the meaning of this subchapter.

(b) BOND.-Every manufacturer of opium suitable for smoking purposes shall file with the collector of the district in which his manufactory is located such bonds as the Secretary may by regulation require. But the bond required of such manufacturer shall be with sureties satisfactory to the collector, and in a penal sum of not less than $100,000; and the sum of said bond may be increased from time to time and additional sureties required, at the discretion of the collector or under instructions of the Secretary. No person shall engage in such manufacture who has not given the bond required by the Secretary.

(c) CITIZENSHIP.-No person shall engage in the manufacture of opium suitable for smoking purposes who is not a citizen of the United States.

(d) OTHER REQUIREMENTS.-Every manufacturer of opium suitable for smoking purposes shall

(1) NOTICES AND INVENTORIES.-File with the collector of the district in which his manufactory is located such notices and inventories,

(2) BOOKS AND RETURNS.-Keep such books and render such returns of material and products,

(3) SIGNS AND FACTORY NUMBER.-Put up such signs and affix such number to his factory, and

(4) CONDUCT OF BUSINESS.-Conduct his business under such surveillance of officers and agents

as the Secretary may by regulation require.

(5) CROSS REFERENCE.

For authority of the Secretary to delegate such powers and duties, see subchapter D [section 2606].

SEC. 2570. PENALTY.

A penalty of not less than $10,000 or imprisonment for not less than five years, or both, in the discretion of the court, shall be imposed for each and every violation of this subchapter relating to opium by any

person or persons.

SEC. 2571. FORFEITURE.

All opium prepared for smoking, wherever found within the United States without the stamps required by this subchapter, shall be forfeited and destroyed.

SEC. 2590. TAX.

SUBCHAPTER C-MARIHUANA

(a) RATE.-There shall be levied, collected, and paid upon all transfers of marihuana which are required by section 2591 to be carried out in pursuance of written order forms taxes at the following rates:

(1) TRANSFERS TO SPECIAL TAXPAYERS.-Upon each transfer to any person who has paid the special tax and registered under

sections 3230 and 3231, $1 per ounce of marihuana or fraction thereof.

(2) TRANSFERS TO OTHERS.-Upon each transfer to any person who has not paid the special tax and registered under sections 3230 and 3231, $100 per ounce of marihuana or fraction thereof. (b) BY WHOM PAID.-Such tax shall be paid by the transferee at the time of securing each order form and shall be in addition to the price of such form. Such transferee shall be liable for the tax imposed by this section but in the event that the transfer is made in violation of section 2591 without an order form and without payment of the transfer tax imposed by this section, the transferor shall also be liable for such tax.

(c) How PAID.—

(1) STAMPS.-Payment of the tax herein provided shall be represented by appropriate stamps to be provided by the Secretary. (2) ASSESSMENT.

For assessment in case of omitted taxes payable by stamp, see section 3311 and section 3640.

(d) REGISTRATION AND SPECIAL TAX.

For requirements as to registration and special tax, see part VI of subchapter A of chapter 27 [sections 3230 and following].

SEC. 2591. ORDER FORMS.

(a) GENERAL REQUIREMENT.-It shall be unlawful for any person, whether or not required to pay a special tax and register under sections 3230 and 3231, to transfer marihuana, except in pursuance of a written order of the person to whom such marihuana is transferred, on a form to be issued in blank for that purpose by the Secretary. (b) EXCEPTIONS.-Subject to such regulations as the Secretary may prescribe, nothing contained in this section shall apply—

(1) PROFESSIONAL PRACTICE.-To a transfer of marihuana to a patient by a physician, dentist, veterinary surgeon, or other practitioner registered under section 3231, in the course of his professional practice only: Provided, That such physician, dentist, veterinary surgeon, or other practitioner shall keep a record of all such marihuana transferred, showing the amount transferred and the name and address of the patient to whom such marihuana is transferred, and such record shall be kept for a period of two years from the date of the transfer of such marihuana, and subject to inspection as provided in section 2595.

(2) PRESCRIPTIONS.-To a transfer of marihuana, made in good faith by a dealer to a consumer under and in pursuance of a written prescription issued by a physician, dentist, veterinary surgeon, or other practitioner registered under section 3231: Provided, That such prescription shall be dated as of the day on which signed and shall be signed by the physician, dentist, veterinary surgeon, or other practitioner who issues the same: Provided further, That such dealer shall preserve such prescription for a period of two years from the day on which such prescription is filled, so as to be readily accessible for inspection by the officers, agents, employees, and officials mentioned in section 2595.

(3) EXPORTATION. To the sale, exportation, shipment, or delivery of marihuana by any person within the United States, any Territory, the District of Columbia, or any of the insular possessions of the United States, to any person in any foreign country regulating the entry of marihuana, if such sale, shipment, or delivery of marihuana is made in accordance with such regulations for importation into such foreign country as are prescribed by such foreign country, such regulations to be promulgated from time to time by the Secretary of State of the United States. (4) GOVERNMENT AND STATE OFFICIALS.-To a transfer of marihuana to any officer or employee of the United States Government or of any State, Territorial, District, county, or municipal or insular government lawfully engaged in making purchases thereof for the various departments of the Army and Navy, the Public Health Service, and for Government, State, Territorial, District, county, or municipal or insular hospitals or prisons.

(5) CERTAIN SEEDS. To a transfer of any seeds of the plant Cannabis sativa L. to any person registered under section 3231. (c) SUPPLY.-The Secretary shall cause suitable forms to be prepared for the purposes before mentioned and shall cause them to be distributed to collectors for sale. The price at which such forms shall be sold by said collectors shall be fixed by the Secretary, but shall not exceed 2 cents each. Whenever any collector shall sell any of such forms, he shall cause the date of sale, the name and address of the proposed vendor, the name and address of the purchaser, and the amount of marihuana ordered to be plainly written or stamped thereon before delivering the same.

(d) PRESERVATION.-Each such order form sold by a collector shall be prepared by him and shall include an original and two copies, any one of which shall be admissible in evidence as an original. The original and one copy shall be given by the collector to the purchaser thereof. The original shall in turn be given by the purchaser thereof to any person who shall, in pursuance thereof, transfer marihuana to him and shall be preserved by such person for a period of two years so as to be readily accessible for inspection by any officer, agent, or employee mentioned in section 2595. The copy given to the purchaser by the collector shall be retained by the purchaser and preserved for a period of two years so as to be readily accessible to inspection by any officer, agent, or employee mentioned in section 2595. The second copy shall be preserved in the records of the collector.

(e) EXEMPTION FOR CERTAIN TRANSFERS TO MILLERS.-Nothing in this section shall apply to a transfer of the plant Cannabis sativa L. or any parts thereof from any person registered under section 3231 to a person who is also registered under section 3231 as a taxpayer required to pay the tax imposed by section 3230 (a) (6).

SEC. 2592. STAMPS.

(a) AFFIXING. The stamps provided in section 2590 (c) (1) shall be affixed by the collector or his representative to the original order form.