; or (ii) is as of the date of the application, no longer an offense in that State. (C) State second chances practices safe harbor A State has examined the offense or offenses in question, or is in the process of examining, for the issuance of a State license to engage in cannabis commerce, and has awarded the applicant a State license to engage in cannabis commerce. (3) Grandfathering and prospective comity for state licensure (A) Grandfathering Any person licensed by a State cannabis regulatory authority before the passage of this Act to produce, warehouse, distribute or otherwise transport cannabis products, and in good standing with that regulatory authority, shall be issued necessary Federal permits, licenses, or the like to engage in federally regulated commerce upon application for the same to the Alcohol and Tobacco Tax and Trade Bureau of the Department of the Treasury. (B) Prospective federal-state permit comity Any person licensed by a State cannabis regulatory authority after the passage of this Act to produce, warehouse, distribute or otherwise transport cannabis products, and in good standing with that regulatory authority shall be issued necessary Federal permits to engage in federally regulated commerce upon application for the same. (C) Rule of construction Nothing in this Act, or the lawful exercise of rights or privileges granted herein, shall be construed to infringe upon or prejudice the ability of a State-licensed cannabis business to apply for a permit to engage in interstate or foreign commerce. (b) Refusal of permit