Bill Text: MI HB5144 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Marihuana; facilities; requirements for the issuance of a state operating license; revise, and provide for other general amendments. Amends title & secs. 102, 201, 205, 206, 501, 502, 503, 504, 505, 602 & 801 of 2016 PA 281 (MCL 333.27102 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-01-30 - Assigned Pa 10'18 With Immediate Effect [HB5144 Detail]
Download: Michigan-2017-HB5144-Engrossed.html
HB-5144, As Passed Senate, January 16, 2018
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 5144
A bill to amend 2016 PA 281, entitled
"Medical marihuana facilities licensing act,"
by amending the title and sections 102, 201, 205, 206, 501, 502,
503, 504, 505, 602, and 801 (MCL 333.27102, 333.27201, 333.27205,
333.27206, 333.27501, 333.27502, 333.27503, 333.27504, 333.27505,
333.27602, and 333.27801).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to license and regulate medical marihuana growers,
processors, provisioning centers, secure transporters, and safety
compliance facilities; to provide for the powers and duties of
certain state and local governmental officers and entities; to
create a medical marihuana licensing board; to provide for
interaction with the statewide monitoring system for commercial
marihuana transactions; to create an advisory panel; to provide
immunity from prosecution for marihuana-related offenses for
persons
engaging in marihuana-related certain
activities in
compliance with this act; to prescribe civil fines and sanctions
and provide remedies; to provide for forfeiture of contraband; to
provide for taxes, fees, and assessments; and to require the
promulgation of rules.
Sec. 102. As used in this act:
(a) "Advisory panel" or "panel" means the marihuana advisory
panel created in section 801.
(b) "Affiliate" means any person that controls, is controlled
by, or is under common control with; is in a partnership or joint
venture relationship with; or is a co-shareholder of a corporation,
a co-member of a limited liability company, or a co-partner in a
limited liability partnership with a licensee or applicant.
(c) "Applicant" means a person who applies for a state
operating license. With respect to disclosures in an application,
or for purposes of ineligibility for a license under section 402,
the term applicant includes an officer, director, and managerial
employee of the applicant and a person who holds any direct or
indirect ownership interest in the applicant.
(d) "Board" means the medical marihuana licensing board
created in section 301.
(e) "Cutting" means a section of a lead stem or root stock
that is used for vegetative asexual propagation.
(f) (e)
"Department" means the
department of licensing and
regulatory affairs.
(g) (f)
"Grower" means a licensee
that is a commercial entity
located in this state that cultivates, dries, trims, or cures and
packages
marihuana for sale to a processor, or provisioning center,
or another grower.
(h) (g)
"Licensee" means a person
holding a state operating
license.
(i) (h)
"Marihuana" means that
term as defined in section 7106
of the public health code, 1978 PA 368, MCL 333.7106.
(j) (i)
"Marihuana facility"
means a location at which a
license
holder licensee is licensed to operate under this act.
(k) (j)
"Marihuana plant" means
any plant of the species
Cannabis sativa L.
(l) (k)
"Marihuana-infused
product" means a topical
formulation, tincture, beverage, edible substance, or similar
product containing any usable marihuana that is intended for human
consumption in a manner other than smoke inhalation. Marihuana-
infused
product shall not be is
not considered a food for purposes
of the food law, 2000 PA 92, MCL 289.1101 to 289.8111.
(m) "Marihuana tracking act" means the marihuana tracking act,
2016 PA 282, MCL 333.27901 to 333.27904.
(n) (l) "Michigan
medical marihuana act" means the Michigan
medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430.
(o) (m)
"Municipality" means a
city, township, or village.
(p) (n)
"Paraphernalia" means any
equipment, product, or
material of any kind that is designed for or used in growing,
cultivating, producing, manufacturing, compounding, converting,
storing, processing, preparing, transporting, injecting, smoking,
ingesting, inhaling, or otherwise introducing into the human body,
marihuana.
(q) (o)
"Person" means an
individual, corporation, limited
liability company, partnership, limited partnership, limited
liability partnership, limited liability limited partnership,
trust, or other legal entity.
(r) (p)
"Plant" means any living
organism that produces its
own food through photosynthesis and has observable root formation
or is in growth material.
(s) (q)
"Processor" means a
licensee that is a commercial
entity located in this state that purchases marihuana from a grower
and that extracts resin from the marihuana or creates a marihuana-
infused product for sale and transfer in packaged form to a
provisioning center or another processor.
(t) (r)
"Provisioning center"
means a licensee that is a
commercial entity located in this state that purchases marihuana
from a grower or processor and sells, supplies, or provides
marihuana to registered qualifying patients, directly or through
the patients' registered primary caregivers. Provisioning center
includes any commercial property where marihuana is sold at retail
to registered qualifying patients or registered primary caregivers.
A noncommercial location used by a primary caregiver to assist a
qualifying patient connected to the caregiver through the
department's marihuana registration process in accordance with the
Michigan medical marihuana act is not a provisioning center for
purposes of this act.
(u) (s)
"Registered primary
caregiver" means a primary
caregiver who has been issued a current registry identification
card under the Michigan medical marihuana act.
(v) (t)
"Registered qualifying
patient" means a qualifying
patient who has been issued a current registry identification card
under the Michigan medical marihuana act or a visiting qualifying
patient as that term is defined in section 3 of the Michigan
medical marihuana act, MCL 333.26423.
(w) (u)
"Registry identification
card" means that term as
defined in section 3 of the Michigan medical marihuana act, MCL
333.26423.
(x) (v)
"Rules" means rules
promulgated under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, by the department in consultation with the board to
implement this act.
(y) (w)
"Safety compliance
facility" means a licensee that is
a
commercial entity that receives takes
marihuana from a marihuana
facility or receives marihuana from a registered primary caregiver,
tests
it the marihuana for contaminants and for
tetrahydrocannabinol and other cannabinoids, returns the test
results, and may return the marihuana to the marihuana facility.
(z) (x)
"Secure transporter"
means a licensee that is a
commercial entity located in this state that stores marihuana and
transports marihuana between marihuana facilities for a fee.
(aa) "Seed" means the fertilized, ungerminated, matured ovule,
containing an embryo or rudimentary plant, of a marihuana plant
that is flowering.
(bb) "Seedling" means a marihuana plant that has germinated
and has not flowered and is not harvestable.
(cc) (y)
"State operating license"
or, unless the context
requires a different meaning, "license" means a license that is
issued under this act that allows the licensee to operate as 1 of
the following, specified in the license:
(i) A grower.
(ii) A processor.
(iii) A secure transporter.
(iv) A provisioning center.
(v) A safety compliance facility.
(dd) (z)
"Statewide monitoring
system" or, unless the context
requires a different meaning, "system" means an internet-based,
statewide database established, implemented, and maintained by the
department under the marihuana tracking act, that is available to
licensees, law enforcement agencies, and authorized state
departments and agencies on a 24-hour basis for all of the
following:
(i) Verifying registry identification cards.
(ii) Tracking marihuana transfer and transportation by
licensees, including transferee, date, quantity, and price.
(iii) Verifying in commercially reasonable time that a
transfer will not exceed the limit that the patient or caregiver is
authorized to receive under section 4 of the Michigan medical
marihuana act, MCL 333.26424.
(ee) "Tissue culture" means a marihuana plant cell, cutting,
tissue, or organ, that is kept under a sterile condition on a
nutrient culture medium of known composition and that does not have
visible root formation. A tissue culture is not a marihuana plant
for purposes of a grower.
(ff) (aa)
"Usable marihuana" means
the dried leaves, flowers,
plant resin, or extract of the marihuana plant, but does not
include the seeds, stalks, and roots of the plant.
Sec. 201. (1) Except as otherwise provided in this act, if a
person has been granted a state operating license and is operating
within the scope of the license, the licensee and its agents are
not subject to any of the following for engaging in activities
described in subsection (2):
(a) Criminal penalties under state law or local ordinances
regulating marihuana.
(b) State or local criminal prosecution for a marihuana-
related offense.
(c) State or local civil prosecution for a marihuana-related
offense.
(d) Search or inspection, except for an inspection authorized
under this act by law enforcement officers, the municipality, or
the department.
(e) Seizure of marihuana, real property, personal property, or
anything of value based on a marihuana-related offense.
(f) Any sanction, including disciplinary action or denial of a
right or privilege, by a business or occupational or professional
licensing board or bureau based on a marihuana-related offense.
(2) The following activities are protected under subsection
(1) if performed under a state operating license within the scope
of that license and in accord with this act, rules, and any
ordinance adopted under section 205:
(a) Growing marihuana.
(b) Purchasing, receiving, selling, transporting, or
transferring marihuana from or to a licensee, a licensee's agent, a
registered qualifying patient, or a registered primary caregiver.
(c) Possessing marihuana.
(d) Possessing or manufacturing marihuana paraphernalia for
medical use.
(e) Processing marihuana.
(f) Transporting marihuana.
(g) Testing, transferring, infusing, extracting, altering, or
studying marihuana.
(h) Receiving or providing compensation for products or
services.
(3) Except as otherwise provided in this act, a person who
owns or leases real property upon which a marihuana facility is
located and who has no knowledge that the licensee violated this
act is not subject to any of the following for owning, leasing, or
permitting the operation of a marihuana facility on the real
property:
(a) Criminal penalties under state law or local ordinances
regulating marihuana.
(b) State or local civil prosecution based on a marihuana-
related offense.
(c) State or local criminal prosecution based on a marihuana-
related offense.
(d) Search or inspection, except for an inspection authorized
under this act by law enforcement officers, the municipality, or
the department.
(e) Seizure of any real or personal property or anything of
value based on a marihuana-related offense.
(f) Any sanction, including disciplinary action or denial of a
right or privilege, by a business or occupational or professional
licensing board or bureau.
(4) Except as otherwise provided in this act, a certified
public accountant who is licensed under article 7 of the
occupational code, 1980 PA 299, MCL 339.720 to 339.736, is not
subject to any of the following for engaging in the practice of
public accounting as that term is defined in section 720 of the
occupational code, 1980 PA 299, MCL 339.720, for an applicant or
licensee who is in compliance with this act, rules, and the
Michigan medical marihuana act:
(a) Criminal penalties under state law or local ordinances
regulating marihuana.
(b) State or local civil prosecution based on a marihuana-
related offense.
(c) State or local criminal prosecution based on a marihuana-
related offense.
(d) Seizure of any real or personal property or anything of
value based on a marihuana-related offense.
(e) Any sanction, including disciplinary action or denial of a
right or privilege, by a business or occupational or professional
licensing board or bureau based on a marihuana-related offense.
(5) Except as otherwise provided in this act, a financial
institution is not subject to any of the following for providing a
financial service to a licensee under this act:
(a) Criminal penalties under state law or local ordinances
regulating marihuana.
(b) State or local civil prosecution based on a marihuana-
related offense.
(c) State or local criminal prosecution based on a marihuana-
related offense.
(d) Seizure of any real or personal property or anything of
value based on a marihuana-related offense.
(e) Any sanction, including disciplinary action or denial of a
right or privilege, by a business or occupational or professional
licensing board or bureau based on a marihuana-related offense.
(6) (4)
For the purposes of regulating the
commercial entities
established under this act, any provisions of the following acts
that are inconsistent with this act do not apply to a grower,
processor, secure transporter, provisioning center, or safety
compliance facility operating in compliance with this act:
(a) The business corporation act, 1972 PA 284, MCL 450.1101 to
450.2098.
(b) The nonprofit corporation act, 1982 PA 162, MCL 450.2101
to 450.3192.
(c) 1931 PA 327, MCL 450.98 to 450.192.
(d) The Michigan revised uniform limited partnership act, 1982
PA 213, MCL 449.1101 to 449.2108.
(e) The Michigan limited liability company act, 1993 PA 23,
MCL 450.4101 to 450.5200.
(f) 1907 PA 101, MCL 445.1 to 445.5.
(g) 1913 PA 164, MCL 449.101 to 449.106.
(h) The uniform partnership act, 1917 PA 72, MCL 449.1 to
449.48.
(7) As used in this section:
(a) "Financial institution" means any of the following:
(i) A state or national bank.
(ii) A state or federally chartered savings and loan
association.
(iii) A state or federally chartered savings bank.
(iv) A state or federally chartered credit union.
(v) An insurance company.
(vi) An entity that offers any of the following to a resident
of this state:
(A) A mutual fund account.
(B) A securities brokerage account.
(C) A money market account.
(D) A retail investment account.
(vii) An entity regulated by the Securities and Exchange
Commission that collects funds from the public.
(viii) An entity that is a member of the National Association
of Securities Dealers and that collects funds from the public.
(ix) Another entity that collects funds from the public.
(b) "Financial service" means a deposit; withdrawal; transfer
between accounts; exchange of currency; loan; extension of credit;
purchase or sale of any stock, bond, certificate of deposit, or
other monetary instrument; or any other payment, transfer, or
delivery by, through, or to a financial institution, by whatever
means effected.
Sec.
205. (1) A marihuana facility The
board shall not operate
in
a municipality issue a state
operating license to an applicant
unless the municipality in which the applicant's proposed marihuana
facility will operate has adopted an ordinance that authorizes that
type of facility. A municipality may adopt an ordinance to
authorize 1 or more types of marihuana facilities within its
boundaries and to limit the number of each type of marihuana
facility. A municipality may adopt other ordinances relating to
marihuana facilities within its jurisdiction, including zoning
regulations, but shall not impose regulations regarding the purity
or pricing of marihuana or interfering or conflicting with
statutory
regulations this act or rules
for licensing marihuana
facilities. A municipality that adopts an ordinance under this
subsection
that authorizes a marihuana facility shall
provide the
following
information to the board within 90 days after the
municipality
receives notification from the applicant that he or
she
has applied for a license under this act:the department with
all of the following on a form prescribed and provided by the
department:
(a)
A copy of the local An
attestation that the municipality
has adopted an ordinance under this subsection that authorizes the
marihuana facility.
(b)
A copy description of any zoning regulations that apply to
the proposed marihuana facility within the municipality.
(c)
A description of any violation of the local ordinance or
zoning
regulations included under subdivision (a) or (b) committed
by
the applicant, but only if those violations relate to activities
licensed
under this act or the Michigan medical marihuana act.
(2)
The board may consider the information provided under
subsection
(1) in the application process. However, the
municipality's
failure to provide information to the board shall
not
be used against the applicant.
(c) The signature of the clerk of the municipality or his or
her designee.
(d) Any other information required by the department.
(2) (3)
A municipal ordinance may establish
an annual,
nonrefundable
fee of not more than $5,000.00 on a licensee to help
defray administrative and enforcement costs associated with the
operation of a marihuana facility in the municipality.
(3) The department may require a municipality to provide the
following information to the department on a form prescribed and
provided by the department regarding a licensee who submits an
application for license renewal:
(a) Information that the board declares necessary to determine
whether the licensee's license should be renewed.
(b) A description of a violation of an ordinance or a zoning
regulation adopted under subsection (1) committed by the licensee,
but only if the violation relates to activities licensed under this
act and rules or the Michigan medical marihuana act.
(c) Whether there has been a change to an ordinance or a
zoning regulation adopted under subsection (1) since the license
was issued to the licensee and a description of the change.
(4) Information a municipality obtains from an applicant
related
to licensure under this section is
exempt from disclosure
under the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246. Except as otherwise provided in this subsection,
information a municipality provides to the department under this
section is subject to disclosure under the freedom of information
act, 1976 PA 442, MCL 15.231 to 15.246.
Sec. 206. The department, in consultation with the board,
shall promulgate rules and emergency rules as necessary to
implement,
administer, and enforce this act. The rules shall must
ensure the safety, security, and integrity of the operation of
marihuana
facilities, and shall must
include rules to do the
following:
(a) Set appropriate standards for marihuana facilities and
associated equipment.
(b) Subject to section 408, establish minimum levels of
insurance that licensees must maintain.
(c) Establish operating regulations for each category of
license to ensure the health, safety, and security of the public
and the integrity of marihuana facility operations.
(d) Establish qualifications and restrictions for persons
participating in or involved with operating marihuana facilities.
(e) Establish testing standards, procedures, and requirements
for marihuana sold through provisioning centers.
(f) Provide for the levy and collection of fines for a
violation of this act or rules.
(g) Prescribe use of the statewide monitoring system to track
all marihuana transfers, as provided in the marihuana tracking act
and this act and provide for a funding mechanism to support the
system.
(h) Establish quality control standards, procedures, and
requirements for marihuana facilities.
(i) Establish chain of custody standards, procedures, and
requirements for marihuana facilities.
(j) Establish standards, procedures, and requirements for
waste product disposal and storage by marihuana facilities.
(k) Establish chemical storage standards, procedures, and
requirements for marihuana facilities.
(l) Establish standards, procedures, and requirements for
securely and safely transporting marihuana between marihuana
facilities.
(m) Establish standards, procedures, and requirements for the
storage of marihuana by marihuana facilities.
(n) Establish labeling and packaging standards, procedures,
and requirements for marihuana sold or transferred through
provisioning centers, including a prohibition on labeling or
packaging that is intended to appeal to or has the effect of
appealing to minors.
(o) Establish daily and monthly purchasing limits at
provisioning centers for registered qualifying patients and
registered primary caregivers to ensure compliance with the
Michigan medical marihuana act.
(p) Establish marketing and advertising restrictions for
marihuana products and marihuana facilities.
(q) Establish maximum tetrahydrocannabinol levels for
marihuana-infused products sold or transferred through provisioning
centers.
(r) Establish health standards to ensure the safe preparation
of products containing marihuana that are intended for human
consumption in a manner other than smoke inhalation.
(s) Establish restrictions on edible marihuana-infused
products to prohibit shapes that would appeal to minors.
Sec. 501. (1) A grower license authorizes the grower to grow
not more than the following number of marihuana plants under the
indicated license class for each license the grower holds in that
class:
(a) Class A – 500 marihuana plants.
(b) Class B – 1,000 marihuana plants.
(c) Class C – 1,500 marihuana plants.
(2)
A Except as otherwise
provided in this subsection, a
grower
license authorizes sale of marihuana seeds or marihuana
plants
only to a grower only by means of a secure transporter. A
grower license authorizes the sale or transfer of seeds, seedlings,
or tissue cultures to a grower from a registered primary caregiver
or another grower without using a secure transporter.
(3) A grower license authorizes a grower to transfer marihuana
without using a secure transporter to a processor or provisioning
center if both of the following are met:
(a) The processor or provisioning center occupies the same
location as the grower and the marihuana is transferred using only
private real property without accessing public roadways.
(b) The grower enters each transfer into the statewide
monitoring system.
(4) (3)
A grower license authorizes sale of
marihuana, other
than
seeds, only seedlings,
tissue cultures, and cuttings, to a
processor or provisioning center.
(5) (4)
A Except as otherwise
provided in subsections (2) and
(3) and section 505, a grower license authorizes the grower to
transfer marihuana only by means of a secure transporter.
(6) (5)
To be eligible for a grower
license, the applicant and
each investor in the grower must not have an interest in a secure
transporter or safety compliance facility.
(7) Until December 31, 2018, for a period of 30 days after the
issuance of a grower license and in accord with rules, a grower may
transfer any of the following that are lawfully possessed by an
individual formerly registered as a primary caregiver who is an
active employee of the grower:
(a) Marihuana plants.
(b) Seeds.
(c) Seedlings.
(8) (6)
A grower shall comply with all of
the following:
(a) Until December 31, 2021, have, or have as an active
employee an individual who has, a minimum of 2 years' experience as
a registered primary caregiver.
(b) While holding a license as a grower, not be a registered
primary caregiver and not employ an individual who is
simultaneously a registered primary caregiver.
(c) Enter all transactions, current inventory, and other
information into the statewide monitoring system as required in
this act, rules, and the marihuana tracking act.
(9) (7)
A grower license does not authorize
the grower to
operate in an area unless the area is zoned for industrial or
agricultural uses or is unzoned and otherwise meets the
requirements established in section 205(1).
Sec. 502. (1) A processor license authorizes purchase of
marihuana only from a grower and sale of marihuana-infused products
or marihuana only to a provisioning center or another processor.
(2)
A Except as otherwise
provided in section 505 and this
subsection, a processor license authorizes the processor to
transfer marihuana only by means of a secure transporter. A
processor license authorizes a processor to transfer marihuana
without using a secure transporter to a grower or provisioning
center if both of the following are met:
(a) The grower or provisioning center occupies the same
location as the processor and the marihuana is transferred using
only private real property without accessing public roadways.
(b) The processor enters each transfer into the statewide
monitoring system.
(3) To be eligible for a processor license, the applicant and
each investor in the processor must not have an interest in a
secure transporter or safety compliance facility.
(4) Until December 31, 2018, for a period of 30 days after the
issuance of a processor license and in accord with rules, a
processor may transfer any of the following that are lawfully
possessed by an individual formerly registered as a primary
caregiver who is an active employee of the processor:
(a) Marihuana plants.
(b) Usable marihuana.
(5) (4)
A processor shall comply with all
of the following:
(a) Until December 31, 2021, have, or have as an active
employee an individual who has, a minimum of 2 years' experience as
a registered primary caregiver.
(b) While holding a license as a processor, not be a
registered primary caregiver and not employ an individual who is
simultaneously a registered primary caregiver.
(c) Enter all transactions, current inventory, and other
information into the statewide monitoring system as required in
this act, rules, and the marihuana tracking act.
Sec. 503. (1) A secure transporter license authorizes the
licensee to store and transport marihuana and money associated with
the purchase or sale of marihuana between marihuana facilities for
a fee upon request of a person with legal custody of that marihuana
or money. It does not authorize transport to a registered
qualifying patient or registered primary caregiver. If a secure
transporter has its primary place of business in a municipality
that has adopted an ordinance under section 205 authorizing that
marihuana facility, the secure transporter may travel through any
municipality.
(2) To be eligible for a secure transporter license, the
applicant and each investor with an interest in the secure
transporter must not have an interest in a grower, processor,
provisioning center, or safety compliance facility and must not be
a registered qualifying patient or a registered primary caregiver.
(3) A secure transporter shall enter all transactions, current
inventory, and other information into the statewide monitoring
system as required in this act, rules, and the marihuana tracking
act.
(4) A secure transporter shall comply with all of the
following:
(a) Each driver transporting marihuana must have a chauffeur's
license issued by this state.
(b) Each employee who has custody of marihuana or money that
is related to a marihuana transaction shall not have been convicted
of or released from incarceration for a felony under the laws of
this state, any other state, or the United States within the past 5
years or have been convicted of a misdemeanor involving a
controlled substance within the past 5 years.
(c)
Each vehicle shall must be operated with a 2-person crew
with at least 1 individual remaining with the vehicle at all times
during the transportation of marihuana.
(d)
A route plan and manifest shall must
be entered into the
statewide
monitoring system, and a copy shall must be carried in
the transporting vehicle and presented to a law enforcement officer
upon request.
(e)
The marihuana shall must be transported in 1 or more
sealed containers and not be accessible while in transit.
(f)
A secure transporting vehicle shall must not bear markings
or other indication that it is carrying marihuana or a marihuana-
infused product.
(5) A secure transporter is subject to administrative
inspection by a law enforcement officer at any point during the
transportation of marihuana to determine compliance with this act.
Sec. 504. (1) A provisioning center license authorizes the
purchase or transfer of marihuana only from a grower or processor
and sale or transfer to only a registered qualifying patient or
registered
primary caregiver. All Except
as otherwise provided in
section 505 and this subsection, all transfers of marihuana to a
provisioning
center from a separate marihuana facility shall must
be by means of a secure transporter. A transfer of marihuana to a
provisioning center from a marihuana facility that occupies the
same location as the provisioning center does not require a secure
transporter if the marihuana is transferred to the provisioning
center using only private real property without accessing public
roadways.
(2) A provisioning center license authorizes the provisioning
center to transfer marihuana to or from a safety compliance
facility for testing by means of a secure transporter or as
provided in section 505.
(3) To be eligible for a provisioning center license, the
applicant and each investor in the provisioning center must not
have an interest in a secure transporter or safety compliance
facility.
(4) A provisioning center shall comply with all of the
following:
(a) Sell or transfer marihuana to a registered qualifying
patient or registered primary caregiver only after it has been
tested and bears the label required for retail sale.
(b) Enter all transactions, current inventory, and other
information into the statewide monitoring system as required in
this act, rules, and the marihuana tracking act.
(c) Before selling or transferring marihuana to a registered
qualifying patient or to a registered primary caregiver on behalf
of a registered qualifying patient, inquire of the statewide
monitoring system to determine whether the patient and, if
applicable, the caregiver hold a valid, current, unexpired, and
unrevoked registry identification card and that the sale or
transfer will not exceed the daily and monthly purchasing limit
established by the medical marihuana licensing board under this
act.
(d) Not allow the sale, consumption, or use of alcohol or
tobacco products on the premises.
(e) Not allow a physician to conduct a medical examination or
issue a medical certification document on the premises for the
purpose of obtaining a registry identification card.
Sec. 505. (1) In addition to transfer and testing authorized
in section 203, a safety compliance facility license authorizes the
safety
compliance facility to receive do all of the following
without using a secure transporter:
(a) Take marihuana from, test marihuana for, and return
marihuana to only a marihuana facility.
(b) Collect a random sample of marihuana at the marihuana
facility of a grower, processor, or provisioning center for
testing.
(2) A safety compliance facility must be accredited by an
entity approved by the board by 1 year after the date the license
is issued or have previously provided drug testing services to this
state or this state's court system and be a vendor in good standing
in regard to those services. The board may grant a variance from
this requirement upon a finding that the variance is necessary to
protect and preserve the public health, safety, or welfare.
(3) To be eligible for a safety compliance facility license,
the applicant and each investor with any interest in the safety
compliance facility must not have an interest in a grower, secure
transporter, processor, or provisioning center.
(4) A safety compliance facility shall comply with all of the
following:
(a) Perform tests to certify that marihuana is reasonably free
of chemical residues such as fungicides and insecticides.
(b) Use validated test methods to determine
tetrahydrocannabinol, tetrahydrocannabinol acid, cannabidiol, and
cannabidiol acid levels.
(c) Perform tests that determine whether marihuana complies
with the standards the board establishes for microbial and
mycotoxin contents.
(d) Perform other tests necessary to determine compliance with
any other good manufacturing practices as prescribed in rules.
(e) Enter all transactions, current inventory, and other
information into the statewide monitoring system as required in
this act, rules, and the marihuana tracking act.
(f) Have a secured laboratory space that cannot be accessed by
the general public.
(g) Retain and employ at least 1 staff member with a relevant
advanced degree in a medical or laboratory science.
Sec. 602. (1) The medical marihuana excise fund is created in
the state treasury.
(2) Except for the application fee under section 401, the
regulatory
assessment under section 603, and any local licensing
fees, all money collected under section 601 and all other fees,
fines,
and charges, imposed under this act shall must be deposited
in the medical marihuana excise fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(3) Money in the medical marihuana excise fund at the close of
the
fiscal year shall remain remains
in the fund and shall does not
lapse to the general fund.
(4)
The state treasurer shall be is
the administrator of the
medical marihuana excise fund for auditing purposes.
(5)
The money in the medical marihuana excise fund shall must
be allocated, upon appropriation, as follows:
(a) 25% to municipalities in which a marihuana facility is
located, allocated in proportion to the number of marihuana
facilities within the municipality.
(b) 30% to counties in which a marihuana facility is located,
allocated in proportion to the number of marihuana facilities
within the county.
(c) 5% to counties in which a marihuana facility is located,
allocated in proportion to the number of marihuana facilities
within
the county. Money allocated under this subdivision shall
must
be used exclusively to support the
county sheriffs and shall
must be in addition to and not in replacement of any other funding
received by the county sheriffs.
(d) 30% to this state for the following:
(i) Until September 30, 2017, for deposit in the general fund
of the state treasury.
(ii) Beginning October 1, 2017, for deposit in the first
responder presumed coverage fund created in section 405 of the
worker's disability compensation act of 1969, 1969 PA 317, MCL
418.405.
(e) 5% to the Michigan commission on law enforcement standards
for training local law enforcement officers.
(f) 5% to the department of state police.
Sec. 801. (1) The marihuana advisory panel is created within
the department.
(2)
The marihuana advisory panel shall consist consists of
17
members, including the director of state police or his or her
designee, the director of this state's department of health and
human services or his or her designee, the director of the
department
of licensing and regulatory affairs or his or her
designee, the attorney general or his or her designee, the director
of the department of agriculture and rural development or his or
her designee, and the following members appointed by the governor:
(a) One registered medical marihuana patient or medical
marihuana primary caregiver.
(b) One representative of the industry from the growers
category.
(c) One representative of the industry from the processors
category.
(d) One representative of the industry from the provisioning
centers category.
(e) One representative of the industry from the safety
compliance facilities category.
(f) One representative of townships.
(g) One representative of cities and villages.
(h) One representative of counties.
(i) One representative of sheriffs.
(j) One representative of local police.
(k) One physician licensed under article 15 of the public
health code, 1978 PA 368, MCL 333.16101 to 333.18838.
(l) One representative of a the industry from the secure
transporter category.
(3)
The governor shall appoint the
first members first
appointed
to of the panel shall be appointed within 3 months
after
the
effective date of this act and by
March 1, 2018. The members
appointed to the panel shall serve at the pleasure of the governor
.
Appointed members of the panel and
shall serve for terms of 3
years or until a successor is appointed, whichever is later.
(4) If a vacancy occurs on the advisory panel, the governor
shall make an appointment for the unexpired term in the same manner
as the original appointment.
(5) The director of the department or his or her designee
shall
call the first meeting of the panel shall
be called by the
director
of the department or his or her designee within 1 month
after the advisory panel is appointed. At the first meeting, the
panel shall elect from among its members a chairperson and any
other officers it considers necessary or appropriate. After the
first meeting, the panel shall meet at least 2 times each year, or
more frequently at the call of the chairperson.
(6) A majority of the members of the panel constitute a quorum
for the transaction of business. A majority of the members present
and serving are required for official action of the panel.
(7)
The business that the panel performs shall must be
conducted at a public meeting held in compliance with the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(8) A writing prepared, owned, used, in the possession of, or
retained by the panel in the performance of an official function is
subject to the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246.
(9) Members of the panel shall serve without compensation.
However, members of the panel may be reimbursed for their actual
and necessary expenses incurred in the performance of their
official duties as members of the panel.
(10) The panel may make recommendations to the board
concerning promulgation of rules and, as requested by the board or
the department, the administration, implementation, and enforcement
of this act and the marihuana tracking act.
(11) State departments and agencies shall cooperate with the
panel and, upon request, provide it with meeting space and other
necessary resources to assist it in the performance of its duties.
