subsection shall not apply to any employee of a registered person, or to a nurse under the supervision of a physician, dentist, or veterinary surgeon registered under this subpart or section 4702 (a), having such possession or control by virtue of his employment or occupation and not on his own account; or to the possession of narcotic drugs which has or have been prescribed in good faith by a physician, dentist, or veterinary surgeon registered under this subpart or section 4702 (a); or to any United States, State, county, municipal, District, Territorial, or insular officer or official who has possession of any of said drugs, by reason of his official duties; or to a warehouseman holding possession for a person registered and who has paid the taxes under this subpart and sections 4701 to 4707, inclusive; or to common carriers engaged in transporting such drugs: Provided further, That it shall not be necessary to negative any of the aforesaid exemptions in any complaint, information, indictment, or other writ or proceeding laid or brought under this subpart or sections 4701 to 4707, inclusive; and the burden of proof of any such exemption shall be upon the defendant.

SEC. 4725. OTHER LAWS APPLICABLE.

All provisions of law relating to special taxes, as far as necessary, shall be extended and made applicable to the special tax imposed by this subpart.

SEC. 4726. CROSS REFERENCES.

For penalties and other general and administrative provisions applicable to this subpart, see sections 4731 to 4736, inclusive; sections 4771 to 4776, inclusive; chapter 40; and subtitle F.

Subpart D-General Provisions Relating to Narcotic Drugs

Sec. 4731. Definitions.

Sec. 4732. Records, statements, and returns.

Sec. 4733. Confiscation and disposal of seized drugs.

Sec. 4734. Laws unaffected.

Sec. 4735. Administration in Puerto Rico, the Trust Territory of the Pacific Islands, Guam, the Canal Zone, and the Virgin Islands.

Sec. 4736. Other laws applicable.

SEC. 4731. DEFINITIONS.

(a) NARCOTIC DRUGS.-The words "narcotic drugs" as used in this part shall mean any of the following, whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis:

(1) Opium, isonipecaine, coca leaves, and opiate;

(2) Any compound, manufacture, salt, derivative, or preparation of opium, isonipecaine, coca leaves, or opiate;

(3) Any substance (and any compound, manufacture, salt, derivative, or preparation thereof) which is chemically identical with any of the substances referred to in clauses (1) and (2);

except that the words "narcotic drugs" as used in this part shall not include decocainized coca leaves or extracts of coca leaves, which extracts do not contain cocaine or ecgonine;

(b) PERSON.-The word "person", as used in sections 4701 to 4707, inclusive, and sections 4721 to 4726, inclusive, shall be construed to mean and include a partnership, association, company, or corporation, as well as a natural person.

(c) IMPORTER, MANUFACTURER, OR PRODUCER.-Every person who imports, manufactures, compounds, or otherwise produces for sale or distribution narcotic drugs shall be deemed to be an importer, manufacturer, or producer.

(d) WHOLESALE DEALER.-Every person who sells, or offers for sale, any of said drugs in the original stamped packages as provided in section 4704 (a) shall be deemed a wholesale dealer.

(e) RETAIL DEALER.-Every person who sells or dispenses from original stamped packages as provided in section 4704 (a) shall be deemed a retail dealer: Provided, That the office, or if none, the residence, of any person shall be considered, for the purpose of this part, except sections 4711 to 4715, inclusive, his place of business.

(f) ISONIPECAINE.-The word "isonipecaine", as used in this part shall mean any substance identified chemically as 1-methyl-4-phenylpiperidine-4-carboxylic acid ethyl ester, or any salt thereof, by whatever trade name designated.

(g) OPIATE.

(1) IN GENERAL.-The word "opiate" as used in this part shall mean any drug (as defined in the Federal Food, Drug, and Cosmetic Act (52 Stat. 1041, sec. 201 (g); 21 U. S. C. 321)) or other substance found by the Secretary or his delegate and proclaimed by the Secretary or his delegate (after considering the technical advice of the Secretary of Health, Education, and Welfare, or his delegate, on the subject) to have been so found in the Federal Register, after due notice and opportunity for public hearing, to have an addiction-forming or addiction-sustaining liability similar to morphine or cocaine or to be capable of conversion into a drug having such addiction-forming or addiction-sustaining liability, where, in the judgment of the Secretary or his delegate, the relative technical simplicity and degree of yield of such conversion create a risk of improper use of the drug or other substance.

(2) TERMINATION. The Secretary or his delegate is authorized to withdraw any previous finding that a drug or other substance is an "opiate" whenever (after considering the technical advice of the Secretary of Health, Education, and Welfare, or his delegate, on the subject) he determines that such previous finding was erroneous, and upon publication of such determination in the Federal Register, the particular drug or other substance shall cease to be an opiate. For purposes of the foregoing provision the Secretary or his delegate may consider any action taken pursuant to article 3 of the 1948 protocol (as defined in section 3 (b) of the Narcotics Manufacturing Act of 1960).

(3) REGULATIONS, ETC.-The Secretary or his delegate is authorized to issue necessary rules and regulations for carrying out the provisions of this subsection, and to confer or impose upon any officer or employee of the Treasury Department whom he shall designate or appoint, the duty of conducting any hearing authorized hereunder.

(4) CROSS REFERENCE.

For treatment of certain drugs as being, or ceasing to be, opiates for purposes of this part, see section 5 of the Narcotics Manufacturing Act of 1960.

(h) TERRITORY.-As used in this part

(1) the word "territory" shall include the Trust Territory of the Pacific Islands, and

(2) the word "territorial" shall reflect such inclusion.

SEC. 4732. RECORDS, STATEMENTS, AND RETURNS.

(a) BOOKS AND MONTHLY RETURNS OF IMPORTERS, MANUFACTURERS, AND WHOLESALE DEALERS.-Importers, manufacturers, and wholesale dealers shall keep such books and records and render such monthly returns in relation to the transactions in narcotic drugs as the Secretary or his delegate may by regulations require.

(b) RETURNS BY REGISTRANTS OF DRUGS RECEIVED.-Any person who shall be registered with the Secretary or his delegate under the provisions of section 4722 shall, whenever required so to do by the Secretary or his delegate, render to the official in charge of the internal revenue district a true and correct statement or return, verified by affidavit, setting forth the quantity of narcotic drugs received by him in said internal revenue district during such period immediately preceding the demand of the Secretary or his delegate, not exceeding 3 months, as the Secretary or his delegate may fix and determine; the names of the persons from whom the said drugs were received; the quantity in each instance received from each of such persons; and the date when received.

SEC. 4733. CONFISCATION AND DISPOSAL OF SEIZED drugs.

All narcotic drugs seized by the United States Government from any person or persons charged with any violation of this part, or the act of February 9, 1909 (c. 100, 35 Stat. 614), as amended by the act of January 17, 1914 (c. 9, 38 Stat. 275), the act of May 26, 1922 (c. 202, 42 Stat. 596), the act of June 7, 1924 (c. 352, 43 Stat. 657), the act of June 14, 1930 (c. 488, 46 Stat. 586), and the act of November 2, 1951 (c. 666, 65 Stat. 767; 21 U. S. C. 171-185), shall upon conviction of the person or persons from whom seized be confiscated by and forfeited to the United States; and the Secretary or his delegate is authorized to deliver for medical or scientific purposes to any department, bureau, or other agency of the United States Government, upon proper application therefor under such regulation as may be prescribed by the Secretary or his delegate, any of the drugs so seized, confiscated, and forfeited to the United States. The provisions of this section shall also apply to narcotic drugs seized or coming into the possession of the United States in the enforcement of this part or any of the above-mentioned acts, where the owner or owners thereof are unknown. No narcotic drugs coming into possession of the United States under the operation of said part or acts, or the provisions of this section, shall be destroyed without certification by a committee appointed by the Secretary or his delegate that they are of no value for medical or scientific purposes.

SEC. 4734. LAWS UNAFFECTED.

Nothing contained in sections 4701 to 4707, inclusive, or sections 4721 to 4726, inclusive, shall be construed to impair, alter, amend, or repeal any of the provisions 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; 21 U. S. C. 171185), or of the Federal Food, Drug, and Cosmetic Act (June 25, 1938, c. 675, 52 Stat. 1040; 21 U. S. C. 301 et seq.), and any amendment thereof.

SEC. 4735. ADMINISTRATION IN PUERTO RICO, THE TRUST TERRITORY OF THE PACIFIC ISLANDS, GUAM, THE CANAL ZONE, AND THE VIRGIN ISLANDS.

(a) PUERTO RICO AND THE TRUST TERRITORY OF THE PACIFIC ISLANDS.-In Puerto Rico and the Trust Territory of the Pacific Islands, the administration of sections 4701 to 4707, inclusive, and sections 4721 to 4726, inclusive, the collection of the special tax imposed by section 4721, and the issuance of the order forms specified in section 4705 shall be performed by the appropriate internal revenue officers of those governments, and all revenues collected thereunder in Puerto Rico and the Trust Territory of the Pacific Islands shall accrue intact to the general governments thereof, respectively. The highest court of original jurisdiction of the Trust Territory of the Pacific Islands shall possess and exercise jurisdiction in all cases arising in such Territory under sections 4701 to 4707, inclusive, and sections 4721 to 4726, inclusive.

(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 sections 4701 to 4707, inclusive, and sections 4721 to 4726, inclusive, 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 narcotic drugs.

(c) VIRGIN ISLANDS.

For authority of the President to exempt persons in the Virgin Islands from the order form requirements, see section 4705 (b).

(d) GUAM.-In Guam the administration of sections 4701 to 4707, inclusive; sections 4721 to 4726, inclusive; sections 4732 to 4734, inclusive; and insofar as they relate to narcotic drugs, sections 4771 to 4776, inclusive; the collections of the special tax imposed by section 4721 and the issuance of the order forms specified in section 4705, shall be performed by the appropriate internal revenue officers of Guam, and all revenues collected thereunder in Guam shall accrue intact to the general government thereof.

SEC. 4736. OTHER LAWS APPLICABLE.

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 sections 4701 to 4707, inclusive, sections 4721, 4722, and 4724 (a), and of section 4772 insofar as it relates to narcotic drugs.

PART II-MARIHUANA

Subpart A. Tax on transfers.

Subpart B. Occupational tax.

Subpart C. General provisions relating to marihuana.

Subpart A-Tax on Transfers

Sec. 4741. Imposition of tax.

Sec. 4742. Order forms.

Sec. 4743. Affixing of stamps.

Sec. 4744. Unlawful possession.
Sec. 4745. Forfeitures.

Sec. 4746. Cross references.

SEC. 4741. IMPOSITION OF TAX.

(a) RATE.-There shall be imposed upon all transfers of marihuana which are required by section 4742 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 4751 to 4753, inclusive, $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 4751 to 4753, inclusive, $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 4742 without an order form and without payment of the transfer tax imposed by this section, the transferor shall also be liable for such tax.

SEC. 4742. 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 4751 to 4753, inclusive, 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 or his delegate.

(b) EXCEPTIONS.-Subject to such regulations as the Secretary or his delegate 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 4753, 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 2 years from the date of the transfer of such marihuana, and subject to inspection as provided in section 4773.