Bill Text: MI HB6453 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Marihuana; facilities; applicant for medical marihuana facilities license; allow continued operation in certain circumstances. Amends secs. 201 & 402 of 2016 PA 281 (MCL 333.27201 & 333.27402).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-11-07 - Bill Electronically Reproduced 10/17/2018 [HB6453 Detail]
Download: Michigan-2017-HB6453-Introduced.html
HOUSE BILL No. 6453
October 17, 2018, Introduced by Rep. Inman and referred to the Committee on Law and Justice.
A bill to amend 2016 PA 281, entitled
"Medical marihuana facilities licensing act,"
by amending sections 201 and 402 (MCL 333.27201 and 333.27402),
section 201 as amended by 2018 PA 10 and section 402 as amended by
2017 PA 105.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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) 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) An applicant who, on or before the effective date of the
2018 amendatory act that added this provision, submitted a complete
application and paid the nonrefundable application fee required
under section 401(5) is not subject to any of the actions listed in
subsection (1) for, on or before March 31, 2019, engaging in an
activity listed in subsection (2)(a) to (h).
(8)
(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. 402. (1) The board shall issue a license to an applicant
who submits a complete application and pays both the nonrefundable
application fee required under section 401(5) and the regulatory
assessment established by the board for the first year of
operation, if the board determines that the applicant is qualified
to receive a license under this act.
(2) An applicant is ineligible to receive a license if any of
the following circumstances exist:
(a) The applicant has 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 10 years or has been
convicted of a controlled substance-related felony within the past
10 years.
(b) Within the past 5 years the applicant has been convicted
of a misdemeanor involving a controlled substance, theft,
dishonesty, or fraud in any state or been found responsible for
violating a local ordinance in any state involving a controlled
substance, dishonesty, theft, or fraud that substantially
corresponds to a misdemeanor in that state.
(c) The applicant has knowingly submitted an application for a
license under this act that contains false information.
(d) The applicant is a member of the board.
(e) The applicant fails to demonstrate the applicant's ability
to maintain adequate premises liability and casualty insurance for
its proposed marihuana facility.
(f) The applicant holds an elective office of a governmental
unit of this state, another state, or the federal government; is a
member of or employed by a regulatory body of a governmental unit
in this state, another state, or the federal government; or is
employed by a governmental unit of this state. This subdivision
does not apply to an elected officer of or employee of a federally
recognized Indian tribe or to an elected precinct delegate.
(g) The applicant, if an individual, has been a resident of
this state for less than a continuous 2-year period immediately
preceding the date of filing the application. The requirements in
this subdivision do not apply after June 30, 2018.
(h) The board determines that the applicant is not in
compliance with section 205(1).
(i) The applicant fails to meet other criteria established by
rule.
(3) In determining whether to grant a license to an applicant,
the board shall not consider whether the applicant is an applicant
described
in section 201(7), but may also consider
all of the
following:
(a) The integrity, moral character, and reputation; personal
and business probity; financial ability and experience; and
responsibility or means to operate or maintain a marihuana facility
of the applicant and of any other person that meets either of the
following:
(i) Controls, directly or indirectly, the applicant.
(ii) Is controlled, directly or indirectly, by the applicant
or by a person who controls, directly or indirectly, the applicant.
(b) The financial ability of the applicant to purchase and
maintain adequate liability and casualty insurance.
(c) The sources and total amount of the applicant's
capitalization to operate and maintain the proposed marihuana
facility.
(d) Whether the applicant has been indicted for, charged with,
arrested for, or convicted of, pled guilty or nolo contendere to,
forfeited bail concerning, or had expunged any relevant criminal
offense under the laws of any jurisdiction, either felony or
misdemeanor, not including traffic violations, regardless of
whether the offense has been expunged, pardoned, or reversed on
appeal or otherwise.
(e) Whether the applicant has filed, or had filed against it,
a proceeding for bankruptcy within the past 7 years.
(f) Whether the applicant has been served with a complaint or
other notice filed with any public body regarding payment of any
tax required under federal, state, or local law that has been
delinquent for 1 or more years.
(g) Whether the applicant has a history of noncompliance with
any regulatory requirements in this state or any other
jurisdiction.
(h) Whether at the time of application the applicant is a
defendant in litigation involving its business practices.
(i) Whether the applicant meets other standards in rules
applicable to the license category.
(4) Each applicant shall submit with its application, on forms
provided by the board, a passport quality photograph and shall
ensure that 1 set of fingerprints is submitted to the department of
state police for each person having any ownership interest in the
marihuana facility and each person who is an officer, director, or
managerial employee of the applicant, in order for the department
of state police to conduct a criminal history check on each person
and to forward each person's fingerprints to the Federal Bureau of
Investigation for a national criminal history check. The applicant
shall submit with its application each person's written consent to
the criminal history check described in this section and the
submission of each person's fingerprints to, and the inclusion of
each person's fingerprints in, the state and federal database
systems described in subsection (7).
(5) The fingerprints required under subsection (4) may be
taken by a law enforcement agency or any other person determined by
the department of state police to be qualified to take
fingerprints. The applicant shall submit a fingerprint processing
fee to the department in an amount required under section 3 of 1935
PA 120, MCL 28.273, and any costs imposed by the Federal Bureau of
Investigation.
(6) The department of state police shall conduct a criminal
history check on each person described in subsection (4) and shall
request the Federal Bureau of Investigation to make a determination
of the existence of any national criminal history pertaining to
each person. The department of state police shall provide the board
with a written report containing the criminal history record
information of each person who was the subject of the criminal
history check conducted under this section.
(7) All of the following apply concerning fingerprints
submitted to the department of state police under this section:
(a) The department of state police shall store and retain all
fingerprints submitted under this section in an automated
fingerprint identification system database that searches against
latent fingerprints, and provides for an automatic notification if
and when a subsequent fingerprint is submitted into the system that
matches a set of fingerprints previously submitted under this
section or if and when the criminal history of an individual whose
fingerprints are retained in the system is updated. Upon receiving
a notification, the department of state police shall immediately
notify the board. Information in the database maintained under this
subsection is confidential, is not subject to disclosure under the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, and
shall
must not be disclosed to any person except for purposes
of
this act or for law enforcement purposes.
(b) The department of state police shall forward all
fingerprints submitted to it under this section to the Federal
Bureau of Investigation for submission of those fingerprints into
the FBI automatic notification system. This subdivision does not
apply until the department of state police is a participant in the
FBI automatic notification system. As used in this subdivision:
(i) "Automatic notification system" means a system that stores
and retains fingerprints, and that provides for an automatic
notification to a participant if and when a fingerprint is
submitted into the system that matches an individual whose
fingerprints are retained in the system or if and when the criminal
history of an individual whose fingerprints are retained in the
system is updated.
(ii) "FBI automatic notification system" means the automatic
notification system that is maintained by the Federal Bureau of
Investigation.
(8) The board shall review all applications for licenses and
shall inform each applicant of the board's decision.
(9) A license shall be issued for a 1-year period and is
renewable annually. Except as otherwise provided in this act, the
board shall renew a license if all of the following requirements
are met:
(a) The licensee applies to the board on a renewal form
provided by the board that requires information prescribed in
rules.
(b) The application is received by the board on or before the
expiration date of the current license.
(c) The licensee pays the regulatory assessment under section
603.
(d) The licensee meets the requirements of this act and any
other renewal requirements set forth in rules.
(10) The department shall notify the licensee by mail or
electronic mail at the last known address on file with the board
advising of the time, procedure, and regulatory assessment under
section 603. The failure of the licensee to receive notice under
this subsection does not relieve the licensee of the responsibility
for renewing the license.
(11) If a license renewal application is not submitted by the
license expiration date, the license may be renewed within 60 days
after its expiration date upon application, payment of the
regulatory assessment under section 603, and satisfaction of any
renewal requirement and late fee set forth in rules. The licensee
may continue to operate during the 60 days after the license
expiration date if the license is renewed by the end of the 60-day
period.
(12) License expiration does not terminate the board's
authority to impose sanctions on a licensee whose license has
expired.
(13) In its decision on an application for renewal, the board
shall consider any specific written input it receives from an
individual or entity within the local unit of government in which
the applicant for renewal is located.
(14) A licensee must consent in writing to inspections,
examinations, searches, and seizures that are permitted under this
act and must provide a handwriting exemplar, fingerprints,
photographs, and information as authorized in this act or by rules.
(15) An applicant or licensee has a continuing duty to provide
information requested by the board and to cooperate in any
investigation, inquiry, or hearing conducted by the board.
