AMEND DEFINITION OF ‘APPLICANT’

FOR MEDICAL MARIHUANA LICENSE

Senate Bill 203 as passed by the Senate

Sponsor:  Sen. Michael MacDonald

House Committee:  Judiciary

Senate Committee:  Judiciary and Public Safety

Complete to 4-8-19

SUMMARY:

Senate Bill 203 would amend the Medical Marihuana Facilities Licensing Act (MMFLA) to revise the definition of applicant for an operating license under the act.

Currently, the MMFLA defines applicant as a person who applies for a license to operate as a grower, processor, secure transporter, provisioning center, or safety compliance facility. With respect to disclosure in an application, or for purposes of ineligibility for a license, 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.

Under the bill, applicant would include, with respect to disclosure in an application, for purposes of ineligibility for a license, or for purposes of prior board approval of a transfer of interest, and only for applications submitted on or after January 1, 2019, a managerial employee of the applicant, a person holding a direct or indirect ownership interest of more than 10% in the applicant, and the following for each type of applicant:

·         For an individual or sole proprietorship: the proprietor and spouse.

·         For a partnership or limited liability partnership: all partners and their spouses.

·         For a limited partnership or limited liability partnership: all general and limited partners, not including a limited partner who holds a direct or indirect ownership interest of 10% or less and who does not exercise control over or participate in the management of the partnership, and their spouses.

·         For a limited liability company: all members and managers, not including a member who holds a direct or indirect ownership interest of 10% or less and who does not exercise control over or participate in the management of the company, and their spouses.

·         For a privately or publicly held corporation: all corporate officers or persons with equivalent titles and their spouses; all directors and their spouses; and all stockholders, not including those holding a direct or indirect ownership interest of 10% or less, and their spouses.

·         For a multilevel ownership enterprise: any entity or person that receives or has the right to receive more than 10% of the gross or net profit from the enterprise during any full or partial calendar or fiscal year.

·         For a nonprofit corporation: all individuals and entities with membership or shareholder rights in accordance with the articles of incorporation or bylaws and their spouses.

MCL 333.27102

FISCAL IMPACT:

Senate Bill 203 would not have a fiscal impact on the Department of Licensing and Regulatory Affairs (LARA) or on any other unit of state or local government.

                                                                                         Legislative Analyst:   Emily S. Smith

                                                                                                 Fiscal Analyst:   Marcus Coffin

This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.