SB-0660, As Passed House, December 12, 2013

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 660

 

 

 

 

 

 

 

 

 

 

 

 

      A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

by amending sections 1104, 7212, 7214, 7301a, 7303, 16169,

 

16170a, 16174, 16192, 16216, 16221, 16222, 16226, 16231, 16231a,

 

16232, 16233, 16237, 16241, 16245, 16315, 17754, 17768, 17775,

 

and 20176a (MCL 333.1104, 333.7212, 333.7214, 333.7301a,

 

333.7303, 333.16169, 333.16170a, 333.16174, 333.16192, 333.16216,

 

333.16221, 333.16222, 333.16226, 333.16231, 333.16231a,

 

333.16232, 333.16233, 333.16237, 333.16241, 333.16245, 333.16315,

 

333.17754, 333.17768, 333.17775, and 333.20176a), section 1104 as

 

amended by 1996 PA 307, section 7212 as amended by 2012 PA 183,

 

section 7214 as amended by 1982 PA 352, section 7301a as amended

 

by 2006 PA 392, section 7303 as amended by 1988 PA 60, sections

 

16169 and 16170a as added and section 16192 as amended by 1993 PA

 


80, section 16174 as amended by 2012 PA 49, sections 16216 and

 

16237 as added and section 16241 as amended by 1993 PA 87,

 

section 16221 as amended by 2012 PA 501, sections 16222 and

 

16231a as added and sections 16232 and 17768 as amended by 1993

 

PA 79, section 16226 as amended by 2012 PA 499, sections 16231

 

and 16233 as amended by 2010 PA 382, section 16245 as amended by

 

2011 PA 223, section 16315 as amended by 2009 PA 216, section

 

17754 as amended by 2012 PA 209, section 17775 as added by 2012

 

PA 383, and section 20176a as amended by 1994 PA 52, and by

 

adding article 8; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 1104. (1) "Acknowledgment of parentage" means an

 

 2  acknowledgment executed as provided in the acknowledgment of

 

 3  parentage act, 1996 PA 305, MCL 722.1001 to 722.1013.

 

 4        (2) "Administrative procedures act of 1969" means Act No.

 

 5  306 of the Public Acts of 1969, being sections 24.201 to 24.328

 

 6  of the Michigan Compiled Laws, the administrative procedures act

 

 7  of 1969, 1969 PA 306, MCL 24.201 to 24.328, or a successor act.

 

 8        (3) "Adult" means an individual 18 years of age or older.

 

 9        (4) "Code" means the public health code.this act.

 

10        (5) "Department", except as provided in article articles 8

 

11  and 15, means the state department of community health.

 

12        (6) "Director", except as provided in article articles 8 and

 

13  15, means the state director of community health.

 

14        (7) "Governmental entity" means a government, governmental

 

15  subdivision or agency, or public corporation.

 

16        Sec. 7212. (1) The following controlled substances are

 


 1  included in schedule 1:

 

 2        (a) Any of the following opiates, including their isomers,

 

 3  esters, the ethers, salts, and salts of isomers, esters, and

 

 4  ethers, unless specifically excepted, when the existence of these

 

 5  isomers, esters, ethers, and salts is possible within the

 

 6  specific chemical designation:

 

 

Acetylmethadol            Difenoxin                Noracymethadol

Allylprodine              Dimenoxadol              Norlevorphanol

Alpha-acetylmethadol      Dimepheptanol            Normethadone

10 Alphameprodine            Dimethylthiambutene      Norpipanone

11 Alphamethadol             Dioxaphetyl butyrate     Phenadoxone

12 Benzethidine              Dipipanone               Phenampromide

13 Betacetylmethadol         Ethylmethylthiambutene   Phenomorphan

14 Betameprodine             Etonitazene              Phenoperidine

15 Betamethadol              Etoxeridine              Piritramide

16 Betaprodine               Furethidine              Proheptazine

17 Clonitazene               Hydroxypethidine         Properidine

18 Dextromoramide            Ketobemidone             Propiram

19 Diampromide               Levomoramide             Racemoramide

20 Diethylthiambutene        Levophenacylmorphan      Trimeperidine

21                           Morpheridine            

 

 

22        (b) Any of the following opium derivatives, their salts,

 

23  isomers, and salts of isomers, unless specifically excepted, when

 

24  the existence of these salts, isomers, and salts of isomers is

 

25  possible within the specific chemical designation:

 

 

26 Acetorphine               Drotebanol               Morphine-N-Oxide

27 Acetyldihydrocodeine      Etorphine                Myrophine


Benzylmorphine            Heroin                   Nicocodeine

Codeine methylbromide     Hydromorphinol           Nicomorphine

Codeine-N-Oxide           Methyldesorphine         Normorphine

Cyprenorphine             Methyldihydromorphine    Pholcodine

Desomorphine              Morphine methylbromide   Thebacon

Dihydromorphine           Morphine methylsulfonate

 

 

 7        (c) Any material, compound, mixture, or preparation which

 

 8  contains any quantity of the following hallucinogenic substances,

 

 9  their salts, isomers, and salts of isomers, unless specifically

 

10  excepted, when the existence of these salts, isomers, and salts

 

11  of isomers is possible within the specific chemical designation:

 

 

12 2-Methylamino-1-phenylpropan-1-one

13       Some trade and other names:

14       Methcathinone

15       Cat

16       Ephedrone

17 3, 4-methylenedioxy amphetamine

18       5-methoxy-3, 4-methylenedioxy

19       amphetamine

20 3, 4, 5-trimethoxy amphetamine

21       Bufotenine

22       Some trade and other names:

23       3-(B-dimethylaminoethyl)-5 hydrozyindole

24       3-(2-dimethylaminoethyl)-5 indolol

25       N,N-dimethylserotonin;  5-hydroxy-N-dimethyltryptamine

26       Mappine

27 2, 5-Dimethoxyamphetamine

28       Some trade or other names:

29 2, 5-Dimethoxy-a-methylphenethylamine; 2,5-DMA


4-Bromo-2, 5-Dimethoxyamphetamine

      Some trade or other names:

      4-bromo-2, 5 dimethoxy-a-methylphenethylamine;  4-bromo

      2,5-DMA

Diethyltryptamine

      Some trade and other names:

      N,N-Diethyltryptamine; DET

Dimethyltryptamine

      Some trade or other names:

10       DMT

11 4-methyl-2, 5-dimethoxyamphetamine

12       Some trade and other names:

13       4-methyl-2, 5-dimethoxy-a-methyl-phenethylamine

14       DOM, STP

15 4-methoxyamphetamine

16       Some trade or other names:

17       4-methoxy-a-methylphenethylamine; paramethoxy  amphetamine;

18       PMA

19 Ibogaine

20       Some trade and other names:

21       7-Ethyl-6,6a,7,8,9,10,12,13

22       Octahydro-2-methoxy-6,9-methano-5H-

23       pyrido (1, 2:1, 2 azepino 4, 5-b) indole

24       tabernanthe iboga

25 Lysergic acid diethylamide

26 Except as provided in subsection (2), Marihuana, including

27 pharmaceutical-grade cannabis

28 Mecloqualone

29 Mescaline

30 Peyote

31 N-ethyl-3 piperidyl benzilate


N-methyl-3 piperidyl benzilate

Psilocybin

Psilocyn

Thiophene analog of phencyclidine

      Some trade or other names:

      1-(1-(2-thienyl)cyclohexyl) piperidine)

      2-thienyl analog of phencyclidine; TPCP

 

 

 8        (d) Synthetic equivalents of the substances contained in the

 

 9  plant, or in the resinous extractives of cannabis and synthetic

 

10  substances, derivatives, and their isomers with similar chemical

 

11  structure or pharmacological activity, or both, such as the

 

12  following, are included in schedule 1:

 

13        (i) /\1 cis or trans tetrahydrocannabinol, and their optical

 

14  isomers.

 

15        (ii) /\6 cis or trans tetrahydrocannabinol, and their optical

 

16  isomers.

 

17        (iii) /\3,4, cis or trans tetrahydrocannabinol, and their

 

18  optical isomers.

 

19        (e) Compounds of structures of substances referred to in

 

20  subdivision (d), regardless of numerical designation of atomic

 

21  positions, are included.

 

22        (f) Gamma-hydroxybutyrate and any isomer, salt, or salt of

 

23  isomer of gamma-hydroxybutyrate.

 

 

24       Some trade and other names:

25       Sodium oxybate

26       4-hydroxybutanoic acid monosodium salt

 

 


 1        (g) 3,4-methylenedioxymethamphetamine.

 

 

      Some trade and other names:

      Ecstasy

      MDMA

 

 

 5        (h) N-Benzylpiperazine

 

 

      Some trade and other names:

      BZP

      Benzylpiperazine

      1-(phenylmethyl)-piperazine

 

 

10        (i) 3-Chlorophenylpiperazine

 

 

11       Some trade and other names:

12       MCPP

 

 

13        (j) 1-(3-Trifluoromethylphenyl)piperazine

 

 

14       Some trade and other names:

15       TFMPP

 

 

16        (k) 4-Bromo-2,5-dimethoxybenzylpiperazine

 

 

17       Some trade and other names:

18       2C-B-BZP

 

 

19        (l) All of the following:

 

20        (i) (6aR,10aR)-9-(Hydroxymethyl)-6,6-dimethyl-3-(2-

 

21  methyloctan-2-yl)-6a,7,10,10a-tetrahydrobenzo[c]chromen-1-ol.

 


 

      Some trade and other names:

      HU-210

 

 

 3        (ii) 2-[(1R,3S)-3-hydroxycyclohexyl]-5-(2-methyloctan-2-

 

 4  yl)phenol and its side chain homologues.

 

 

      Some trade and other names:

      CP47,497

 

 

 7        (iii) 1-pentyl-3-(1-naphthoyl)indole.

 

 

      Some trade and other names:

      JWH-018

 

 

10        (iv) 1-butyl-3-(1-naphthoyl)indole.

 

 

11       Some trade and other names:

12       JWH-073

 

 

13        (v) (2-methyl-1-propyl-1H-indol-3-yl)-1-naphthalenyl-

 

14  methanone.

 

 

15       Some trade and other names:

16       JWH-015

 

 

17        (vi) [1-[2-(4-morpholinyl)ethyl]-1H-indol-3-yl]-1-

 

18  naphthalenyl-methanone.

 

 

19       Some trade and other names:

20       JWH-200

 


 

 1        (vii) 1-(1-pentyl-1H-indol-3-yl)-2-(2-methoxyphenyl)-

 

 2  ethanone.

 

 

      Some trade and other names:

      JWH-250

 

 

 5        (m) Mephedrone (4-methylmethcathinone).

 

 

      Some trade and other names:

      4-MMC, M-Cat, meow meow, miaow miaow, bounce, bubbles, bubble

love, mad cow, plant food, drone, and neo doves

 

 

 9        (n) 4-Methyl-alpha-pyrrolidinobutyrophenone.

 

 

10       Some trade and other names:

11       MPBP

 

 

12        (o) Methylenedioxypyrovalerone

 

 

13       Some trade and other names:

14       MDPV, Bath salts, charge plus, cloud nine, hurricane Charlie,

15 ivory wave, ocean, red dove, scarface, sonic, white dove, white

16 lightning

 

 

17        (p) 5,6-Methylenedioxy-2-aminoindane

 

 

18       Some trade and other names:

19       MDAI

20       Woof-woof

 

 

21        (q) Naphyrone (Naphthylpyrovalerone)


 

 

      Some trade and other names:

      NRG-1

      Rave

 

 

 4        (r) Pyrovalerone (1-(4-Methylphenyl)-2-(1-pyrrolidinyl)-1-

 

 5  pentanone)

 

 6        (s) Catha edulis; except as provided in subdivision (t) and

 

 7  section 7218, all parts of the plant presently classified

 

 8  botanically as catha edulis, whether growing or not; the leaves

 

 9  and seeds of that plant; any extract from any part of that plant;

 

10  and every compound, salt, derivative, mixture, or preparation of

 

11  that plant or its leaves, seeds, or extracts.

 

 

12       Some trade and other names:

13       Khat

14       Qat

 

 

15        (t) Cathinone.

 

16        (u) Salvia divinorum; except as provided in subdivision (v),

 

17  all parts of the plant presently classified botanically as salvia

 

18  divinorum, whether growing or not; the leaves and seeds of that

 

19  plant; any extract from any part of that plant; and every

 

20  compound, salt, derivative, mixture, or preparation of that plant

 

21  or its leaves, seeds, or extracts.

 

22        (v) Salvinorin A.

 

23        (2) Marihuana, including pharmaceutical-grade cannabis, is a

 

24  schedule 2 controlled substance if it is manufactured, obtained,

 


 1  stored, dispensed, possessed, grown, or disposed of in compliance

 

 2  with this act and as authorized by federal authority.

 

 3        (3) (2) For purposes of subsection (1), "isomer" includes

 

 4  the optical, position, and geometric isomers.

 

 5        Sec. 7214. The following controlled substances are included

 

 6  in schedule 2:

 

 7        (a) Any of the following substances, except those narcotic

 

 8  drugs listed in other schedules, whether produced directly or

 

 9  indirectly by extraction from substances of vegetable origin, or

 

10  independently by means of chemical synthesis, or by combination

 

11  of extraction and chemical synthesis:

 

12        (i) Opium and opiate, and any salt, compound, derivative, or

 

13  preparation of opium or opiate excluding nalaxone and its salts,

 

14  and excluding naltrexone and its salts, but including the

 

15  following:

 

 

16           Raw opium                    Etorphine hydrochloride

17           Opium extracts               Hydrocodone

18           Opium Fluid-extracts         Hydromorphone

19           Powdered opium               Metopon

20           Granulated opium             Morphine

21           Tincture of opium            Oxycodone

22           Codeine                      Oxymorphone

23           Ethylmorphine                Thebaine

 

 

24        (ii) A salt, compound, derivative, or preparation thereof

 

25  which is chemically equivalent to or identical with a substance

 

26  referred to in this subdivision, (a), except that these

 

27  substances do not include the isoquinoline alkaloids of opium.


 

 1        (iii) Opium poppy, poppy straw, and concentrate of poppy

 

 2  straw, the crude extract of poppy straw in either liquid, solid,

 

 3  or powder form, which contains the phenanthrene alkaloids of the

 

 4  opium poppy.

 

 5        (iv) Coca leaves and any salt, compound, derivative, or

 

 6  preparation thereof which is chemically equivalent to or

 

 7  identical with any of these substances, except that the

 

 8  substances do not include decocainized coca leaves or extraction

 

 9  of coca leaves which extractions do not contain cocaine or

 

10  ecgonine. The substances include cocaine, its salts,

 

11  stereoisomers, and salts of stereoisomers when the existence of

 

12  the salts, stereoisomers, and salts of stereoisomers is possible

 

13  within the specific chemical designation.

 

14        (b) Any of the following opiates, including their isomers,

 

15  esters, ethers, salts, and salts of isomers, when the existence

 

16  of these isomers, esters, ethers, and salts is possible within

 

17  the specific chemical designation:

 

 

18           Alphaprodine                 Fentanyl

19           Anileridine                  Isomethadone

20           Bezitramide                  Levomethorphan

21           Dihydrocodeine               Levorphanol

22           Diphenoxylate                Metazocine

23

24                            Methadone

25 Methadone-Intermediate, 4-cyano-2dimethylamino-4, 4-diphenyl butane

26 Moramide-Intermediate, 2-methyl-3-morpholino-1,

27 1-diphenylpropane-carboxylic acid


                           Pethidine

Pethidine-Intermediate-A, 4-cyano-1-methyl-4-phenylpiperidine

Pethidine-Intermediate-B, ethyl-4-phenylpiperidine-4-carboxylate

Pethidine-Intermediate-C, 1-methyl-4-phenylpiperidine-4-

carboxylic acid

          Phenazocine                  Racemethorphan

          Piminodine                   Racemorphan

 

 

10        (c) Unless listed in another schedule, any material,

 

11  compound, mixture, or preparation which contains any quantity of

 

12  the following substances having potential for abuse associated

 

13  with a stimulant effect on the nervous system:

 

14        (i) Amphetamine, its salts, optical isomers, and salts of its

 

15  optical isomers.

 

16        (ii) Any substance which contains any quantity of

 

17  methamphetamine, including its salts, stereoisomers, and salts of

 

18  stereoisomers.

 

19        (iii) Phenmetrazine and its salts.

 

20        (iv) Methylphenidate and its salts.

 

21        (d) Any material, compound, mixture, or preparation,

 

22  including its salts, isomers, and salts of isomers when the

 

23  existence of the salts, isomers, and salts of isomers is possible

 

24  within the specific chemical designation as listed in schedule 2,

 

25  which contains any quantity of the following substances having a

 

26  potential for abuse associated with the depressant effect on the

 

27  central nervous system: methaqualone, amobarbital, pentobarbital,

 


 1  or secobarbital; or, any compound, mixture, or preparation

 

 2  containing amobarbital, secobarbital, pentobarbital, or any salt

 

 3  thereof in combination with itself, with another, or with 1 or

 

 4  more other controlled substances.

 

 5        (e) Marihuana, but only for use as provided in sections 7335

 

 6  and 7336.the purpose of treating a debilitating medical condition

 

 7  as that term is defined in section 3(b) of the Michigan medical

 

 8  marihuana act, 2008 IL 1, MCL 333.26423, and as authorized under

 

 9  this act.

 

10        Sec. 7301a. Licensing activities conducted under this part

 

11  are subject to sections 16201, 16203, 16299, 16303, 16305, 16307,

 

12  16309, and 16313 and article 8.

 

13        Sec. 7303. (1) A person who manufactures, distributes,

 

14  prescribes, or dispenses a controlled substance in this state or

 

15  who proposes to engage in the manufacture, distribution,

 

16  prescribing, or dispensing of a controlled substance in this

 

17  state shall obtain a license issued by the administrator in

 

18  accordance with the rules. A person who has been issued a

 

19  controlled substances license by the administrator under this

 

20  article and a license under article 15 shall renew the controlled

 

21  substances license concurrently with the renewal of the license

 

22  issued under article 15, and for an equal number of years.

 

23        (2) A person licensed by the administrator under this

 

24  article to manufacture, distribute, prescribe, dispense, or

 

25  conduct research with controlled substances may possess,

 

26  manufacture, distribute, prescribe, dispense, or conduct research

 

27  with those substances to the extent authorized by its license and

 


 1  in conformity with the other provisions of this article.

 

 2        (3) A license issued under this article to manufacture,

 

 3  distribute, prescribe, or dispense pharmaceutical-grade cannabis

 

 4  and the conduct of the licensee is subject to the additional

 

 5  requirements of article 8.

 

 6        (4) (3) The following persons need not be licensed and may

 

 7  lawfully possess controlled substances or prescription forms

 

 8  under this article:

 

 9        (a) An agent or employee of a licensed manufacturer,

 

10  distributor, prescriber, or dispenser of a controlled substance

 

11  if acting in the usual course of the agent's or employee's

 

12  business or employment.

 

13        (b) A common or contract carrier or warehouseman, or an

 

14  employee thereof, whose possession of a controlled substance or

 

15  prescription form is in the usual course of business or

 

16  employment.

 

17        (c) An ultimate user or agent in possession of a controlled

 

18  substance or prescription form pursuant to a lawful order of a

 

19  practitioner or in lawful possession of a schedule 5 substance.

 

20        (5) (4) The administrator may waive or include by rule the

 

21  requirement for licensure of certain manufacturers, distributors,

 

22  prescribers, or dispensers, if it finds the waiver or inclusion

 

23  is consistent with the public health and safety.

 

24        (6) (5) A separate license is required at each principal

 

25  place of business or professional practice where the applicant

 

26  manufactures, distributes, prescribes, or dispenses controlled

 

27  substances.

 


 1        (7) (6) As a requisite for licensure, the administrator may

 

 2  inspect the establishment of a licensee or applicant for

 

 3  licensure in accordance with the administrator's rule.

 

 4        (8) (7) A person licensed under this article to distribute

 

 5  controlled substances shall report to the administrator on a

 

 6  quarterly basis all schedule 2 controlled substances and those

 

 7  controlled substances designated by the administrator pursuant to

 

 8  this subsection which that are sold to licensed practitioners and

 

 9  retail pharmacies. The report shall be in writing and shall

 

10  include the name of each licensed practitioner and retail

 

11  pharmacy to whom the controlled substance was distributed. A

 

12  report under this subsection may be transmitted electronically,

 

13  if the transmission is ultimately reduced to writing. The

 

14  administrator shall designate by rule the controlled substances

 

15  in schedules 3 to 5 to be reported under this subsection.

 

16                            ARTICLE 8

 

17                  PHARMACEUTICAL-GRADE CANNABIS

 

18                             PART 81

 

19                        GENERAL PROVISIONS

 

20        Sec. 8101. (1) For purposes of this article, the words and

 

21  phrases defined in sections 8103 to 8107 have the meanings

 

22  ascribed to them in those sections.

 

23        (2) In addition, article 1 contains general definitions and

 

24  principles of construction applicable to all articles in this

 

25  act.

 

26        Sec. 8103. (1) "Applicant" means the person submitting an

 

27  application for a new license or license renewal under part 82

 


 1  and includes each individual identified in the application as an

 

 2  owner, operator, officer, director, partner, member, or manager

 

 3  of the applicant.

 

 4        (2) "CBD" and "CBD acid" mean cannabidiol and cannabidiol

 

 5  acid.

 

 6        (3) "Department" means the department of licensing and

 

 7  regulatory affairs.

 

 8        (4) "Director" means the director of the department.

 

 9        (5) "Eligible patient" means an individual who meets the

 

10  requirements of part 84 and has been issued an enhanced

 

11  pharmaceutical-grade cannabis registration card.

 

12        (6) "Enhanced pharmaceutical-grade cannabis registration

 

13  card" or "registration card" means the registration card issued

 

14  to an eligible patient under part 84.

 

15        (7) "Good moral character" means that term as defined in

 

16  section 1 of 1974 PA 381, MCL 338.41.

 

17        Sec. 8105. (1) "Marihuana" means that term as defined in

 

18  section 7106 and includes pharmaceutical-grade cannabis.

 

19        (2) "Medical use" means the purchase, sale, possession, use,

 

20  internal possession, delivery, transfer, or transportation of

 

21  pharmaceutical-grade cannabis or paraphernalia relating to the

 

22  administration of pharmaceutical-grade cannabis to treat or

 

23  alleviate an eligible patient's debilitating medical condition.

 

24        (3) "Michigan medical marihuana act" means the Michigan

 

25  medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430.

 

26        (4) "Pharmaceutical-grade cannabis" means a grade of

 

27  cannabis that is cultivated for the purposes of this article;

 


 1  that is free of chemical residues such as fungicides and

 

 2  insecticides and is tested by validated methods to determine its

 

 3  cannabinoid levels, specifically, THC and THC acid levels and CBD

 

 4  and CBD acid levels and complies with the standards set forth in

 

 5  section 8303(6) for its microbial, mycotoxin, and metal contents,

 

 6  including heavy metals; and that meets any other necessary

 

 7  requirements to be considered in compliance with good

 

 8  manufacturing practices as prescribed in rules promulgated by the

 

 9  department under this article.

 

10        (5) "Pharmaceutical-grade cannabis fund" or "fund" means the

 

11  pharmaceutical-grade cannabis fund created in section 8113.

 

12        (6) "Pharmaceutical-grade cannabis licensed facility" or

 

13  "licensed facility" means any secure entity, operation, or

 

14  facility at or through which pharmaceutical-grade cannabis is

 

15  manufactured, cultivated, and tested in this state for lawful

 

16  medical use as provided for in this article and the Michigan

 

17  medical marihuana act. Pharmaceutical-grade cannabis licensed

 

18  facility does not include a qualifying patient or primary

 

19  caregiver who possesses or cultivates marihuana in the manner

 

20  prescribed in the Michigan medical marihuana act or an eligible

 

21  patient who possesses pharmaceutical-grade cannabis in the manner

 

22  prescribed in this article.

 

23        Sec. 8107. (1) "Qualifying patient" means an individual who

 

24  has been issued a registry identification card as a qualifying

 

25  patient under the Michigan medical marihuana act.

 

26        (2) "THC" means delta-9-tetrahydrocannabinol and

 

27  tetrahydrocannabinol acid.

 


 1        Sec. 8109. (1) A person shall not manufacture, distribute,

 

 2  prescribe, or dispense pharmaceutical-grade cannabis without

 

 3  first obtaining a license to manufacture, distribute, prescribe,

 

 4  or dispense a controlled substance under article 7.

 

 5        (2) A license issued under article 7 to manufacture,

 

 6  distribute, prescribe, or dispense pharmaceutical-grade cannabis

 

 7  and the conduct of a person licensed to manufacture, distribute,

 

 8  prescribe, or dispense pharmaceutical-grade cannabis under that

 

 9  license is subject to the additional requirements of this

 

10  article.

 

11        (3) Article 7 and this article do not apply to conduct

 

12  permitted under the Michigan medical marihuana act.

 

13        Sec. 8111. (1) Beginning on the effective date of this

 

14  article, the director may charge a reasonable fee for licensing,

 

15  registration, inspection, testing, investigation, or other

 

16  activity or service provided by the department under this

 

17  article. The fee authorized under this subsection is in addition

 

18  to any fee authorized under article 7. All fees permitted under

 

19  this section shall be delivered to the state treasurer on a

 

20  monthly basis for deposit in the pharmaceutical-grade cannabis

 

21  fund.

 

22        (2) Before collecting a fee under this article, the

 

23  department shall develop and publish a comprehensive schedule of

 

24  fees. The schedule shall include a description of each activity

 

25  or service and the maximum fee charged for that activity or

 

26  service. The department shall include a statement of the rationale

 

27  used in determining the fees contained in the schedule. The

 


Senate Bill No. 660 (H-1) as amended December 12, 2013

 1  department shall revise the fee schedule from time to time so

 

 2  that the amount of fees collected under this article does not

 

 3  exceed the amount necessary to fund the duties of the department

 

 4  under this article.

 

 5        Sec. 8113. (1) The pharmaceutical-grade cannabis fund is

 

 6  created within the state treasury. In addition to the fees

 

 7  described in section 8111, the state treasurer may receive money

 

 8  or other assets from any source for deposit into the fund. The

 

 9  state treasurer shall direct the investment of the fund. The

 

10  state treasurer shall credit to the fund interest and earnings

 

11  from fund investments. Money in the fund at the close of the

 

12  fiscal year shall remain in the fund and shall not lapse to the

 

13  general fund.

 

14        (2) The department is the administrator of the fund for

 

15  auditing purposes and the department shall expend money from the

 

16  fund, upon appropriation, only for the direct and indirect costs

 

17  associated with implementing, administering, and enforcing this

 

18  article.

 

19        Sec. 8115. [(1) Subject to subsection (2), the] department shall

    promulgate rules necessary

 

20  to carry out this article. The rules shall address, but are not

 

21  required to be limited to addressing, all of the following

 

22  subjects:

 

23        (a) If not specifically provided for in this article,

 

24  activities necessary for the compliance with or enforcement of or

 

25  activities that constitute a violation of this article,

 

26  including, but not limited to, procedures and grounds for

 

27  denying, suspending, or revoking a license or registration card

 


 1  under this article.

 

 2        (b) Instructions for access by local health departments and

 

 3  law enforcement officers.

 

 4        (c) All forms necessary or convenient for the

 

 5  implementation, administration, and enforcement of this article.

 

 6        (d) Activities that constitute or result in

 

 7  misrepresentation or unfair, deceptive practices.

 

 8        (e) Procedures and forms for issuing enhanced

 

 9  pharmaceutical-grade cannabis registration cards.

 

10        (f) Regulating the manufacturing, inventory, storage,

 

11  disposal, and sale of pharmaceutical-grade cannabis and

 

12  specifying legitimate sources for obtaining seed to cultivate

 

13  pharmaceutical-grade cannabis.

 

14        (g) The quarterly reporting by licensed facilities of their

 

15  inventory, which shall include the number of plants under

 

16  cultivation, the amount of dried plant material, the amount of

 

17  destroyed plants, and all sales.

 

18        (h) Compliance with federal regulatory requirements.

 

19        (i) Health and sanitary requirements for licensed

 

20  facilities.

 

21        (j) Record keeping, record retention, record storage, and

 

22  record security requirements for pharmaceutical-grade cannabis

 

23  licensed facilities.

 

24        (k) Audit requirements for licensed facilities, which shall

 

25  include self reporting of inventory on a monthly basis, subject

 

26  to inspection by designated state and federal authorities.

 

27        (l) Physical security requirements for pharmaceutical-grade

 


Senate Bill No. 660 (H-1) as amended December 12, 2013

 1  cannabis that at a minimum include lighting and alarms.

 

 2        (m) The reporting and transmittal of monthly sales and

 

 3  income tax payments for licensed facilities.

 

 4        (n) Authorization for the department of treasury to have

 

 5  access to licensing information to ensure sales and income tax

 

 6  payments for licensed facilities.

 

 7        (o) Activities that constitute lawful and unlawful financial

 

 8  arrangements between licensed facilities.

 

 9        (p) The quantity of pharmaceutical-grade cannabis plants and

 

10  dried plant material that a licensed facility may possess in its

 

11  inventory at any time.

 

12        (q) Other matters necessary for the fair, impartial,

 

13  stringent, and comprehensive implementation, administration, and

 

14  enforcement of this article to protect the health, safety, and

 

15  welfare of the residents of this state.

[(2) The department of licensing and regulatory affairs may begin

    promulgation of the rules required under this article at the time

    marihuana, including pharmaceutical-grade cannabis, is rescheduled by

    federal authority. However, implementation and enforcement of this

    article shall not occur sooner than 180 days after that federal authority

    reschedules marihuana.]

16        Sec. 8117. The department shall establish a pharmaceutical-

 

17  grade cannabis licensed facility registry. The registry shall be

 

18  an online database that contains information regarding the

 

19  pharmaceutical-grade cannabis licensed facilities licensed under

 

20  part 82. Information in the database shall be made available to

 

21  the public.

 

22        Sec. 8119. By January 31 of each calendar year, the

 

23  department shall submit to the legislature an annual report for

 

24  the previous calendar year that contains all of the following

 

25  information:

 

26        (a) The total amount of fees collected under this article.

 

27        (b) All costs related to performing the duties of the

 


Senate Bill No. 660 (H-1) as amended December 12, 2013

 1  department under this article.

 

 2        (c) Fines, suspensions, or license revocations that were

 

 3  imposed by the department under this article.

 

 4        (d) Any other information the department considers

 

 5  appropriate under this article.

 

 6                             PART 81A

 

 7  PRESCRIBING AND DISPENSING PHARMACEUTICAL-GRADE CANNABIS

 

 8        Sec. 8151. A physician who determines that his or her

 

 9  patient is likely to receive therapeutic or palliative benefit

 

10  from the use of pharmaceutical-grade cannabis to treat or

 

11  alleviate the patient's debilitating medical condition or

 

12  symptoms of the patient's debilitating medical condition may

 

13  recommend the issuance of an enhanced pharmaceutical-grade

 

14  cannabis registration card to that patient as an eligible

 

15  patient.

 

16        Sec. 8152. (1) The department may issue an enhanced

 

17  pharmaceutical-grade cannabis registration card to an eligible

 

18  patient who is [18 years of age or older, who is] recommended by a

    physician to obtain a

 

19  registration card[,] and who properly applies for that card. [The

    department may issue an enhanced pharmaceutical-grade cannabis card to an

    eligible patient who is less than 18 years of age, who is recommended by

    2 physicians to obtain a registration card, and who properly applies for

    that card or if his or her parent or guardian properly applies for that

    card on his or her behalf.] Before

20  issuing a card to an eligible patient under this section, the

 

21  department shall determine whether the individual has previously

 

22  been convicted of a felony violation for illegally manufacturing,

 

23  creating, distributing, possessing, or using a controlled

 

24  substance or conspiring or attempting to manufacture, create,

 

25  distribute, possess, or use a controlled substance in this state

 

26  or elsewhere. If the individual has previously been convicted of

 

27  a felony violation for illegally manufacturing, creating,

 


 1  distributing, possessing, or using a controlled substance or

 

 2  conspiring or attempting to manufacture, create, distribute,

 

 3  possess, or use a controlled substance in this state or

 

 4  elsewhere, the department shall not issue a registration card to

 

 5  that individual.

 

 6        (2) If an individual has a registry identification card as

 

 7  defined in section 3 of the Michigan medical marihuana act, 2008

 

 8  IL 1, MCL 333.26423, the department shall require the individual

 

 9  to surrender that card before issuing the individual an enhanced

 

10  pharmaceutical-grade cannabis registration card under this

 

11  section.

 

12        Sec. 8153. (1) The department shall ensure that the

 

13  following information for each pharmaceutical-grade cannabis

 

14  registration card is entered into the law enforcement information

 

15  network:

 

16        (a) The card registration number.

 

17        (b) The name and address of the individual to whom the card

 

18  is issued.

 

19        (c) The date the card was issued and the expiration date.

 

20        (d) The name and address of the physician who authorized

 

21  issuance of the card.

 

22        (2) Subsection (1) does not authorize the department to

 

23  enter any information into the law enforcement information

 

24  network regarding the diagnosis supporting issuance of the card

 

25  or any medical information regarding the individual to whom the

 

26  card has been issued.

 

27        Sec. 8154. (1) Each prescription for pharmaceutical-grade

 


Senate Bill No. 660 (H-1) as amended December 12, 2013

 1  cannabis shall contain all of the following information:

 

 2        (a) The date the prescription is written.

 

 3        (b) The date the prescription is filled.

 

 4        (c) The dosage and instructions for use, which shall include

 

 5  the percentage of total THC and the percentage of total CBD. A

 

 6  prescription for pharmaceutical-grade cannabis shall not allow

 

 7  the individual to whom the prescription is issued to obtain more

 

 8  than 2.5 ounces of pharmaceutical-grade cannabis. Pharmaceutical-

 

 9  grade cannabis must be kept only in the original packaging or

 

10  container provided by the manufacturer or by the dispensing

 

11  pharmacy.

 

12        (d) The name, address, and federal drug enforcement

 

13  administration number of the dispensing pharmacy and the initials

 

14  of the pharmacist who fills the prescription.

 

15        (e) The name, address, and date of birth of the eligible

 

16  patient for whom the pharmaceutical-grade cannabis is prescribed.[

 

17 

 

18                                       ]

 

19        (f) The product brand name, if a brand name is specified by

 

20  the prescriber.

 

21        (2) The department shall require the use of the electronic

 

22  system established under section 7333a for monitoring

 

23  pharmaceutical-grade cannabis dispensed under this section as a

 

24  schedule 2 controlled substance.

 

25        (3) The director shall permit access to information

 

26  submitted to the department under this article only to the

 

27  following individuals and as provided in this article:

 


 1        (a) Employees and agents of the department authorized by the

 

 2  director of the department.

 

 3        (b) Employees of state, county, and other local law

 

 4  enforcement entities authorized by the administrator as defined

 

 5  in article 7 for the purpose of cooperating and assisting a

 

 6  governmental agency that is responsible for the enforcement of

 

 7  laws relating to controlled substances or a prescribing physician

 

 8  or pharmacy concerning an individual suspected of attempting to

 

 9  obtain a controlled substance by fraud, deceit, or

 

10  misrepresentation.

 

11        (c) A person with whom the department has contracted under

 

12  subsection (8).

 

13        (4) Information submitted to the department under this

 

14  section is confidential, but may be released to persons

 

15  authorized by the director to conduct research studies or to

 

16  other persons authorized by the director. However, subject to

 

17  subsection (5) and section 8153, information shall be released

 

18  for statistical purposes only.

 

19        (5) The system for retrieval of information submitted to the

 

20  department under this section shall be designed in all respects

 

21  so as to preclude improper access to information.

 

22        (6) Except as otherwise provided in this part, information

 

23  submitted to the department under this section shall be used only

 

24  for bona fide drug-related criminal investigatory or evidentiary

 

25  purposes or for investigatory or evidentiary purposes in

 

26  connection with the functions of 1 or more of the licensing

 

27  boards created in article 15.

 


 1        (7) The identity of an individual eligible patient that is

 

 2  submitted to the department under to this section shall be

 

 3  removed from the system for retrieval of the information

 

 4  described in this section and shall be destroyed and rendered

 

 5  irretrievable not later than the end of the calendar year

 

 6  following the year in which the information was submitted to the

 

 7  department. However, an individual eligible patient identity that

 

 8  is necessary for use in a specific ongoing investigation

 

 9  conducted in accordance with this act may be retained in the

 

10  system until the end of the year in which the necessity for

 

11  retention of the identity ends.

 

12        (8) The department may enter into contractual agreements for

 

13  the administration of this section.

 

14                             PART 82

 

15                        FACILITY LICENSING

 

16        Sec. 8201. To protect the health, safety, and welfare of

 

17  residents of this state, the department shall license facilities

 

18  under this article to cultivate, manufacture, and test

 

19  pharmaceutical-grade cannabis in this state. The department shall

 

20  implement, administer, and enforce this article to ensure that a

 

21  safe, pure, dosage—consistent grade of pharmaceutical-grade

 

22  cannabis is available to eligible patients who are residents of

 

23  this state.

 

24        Sec. 8205. (1) The department shall not issue a license to

 

25  an applicant to operate a pharmaceutical-grade cannabis licensed

 

26  facility unless the department is satisfied that all of the

 

27  following requirements are met:

 


 1        (a) All fees required under this article have been paid.

 

 2        (b) The applicant will operate the licensed facility in

 

 3  compliance with this article.

 

 4        (c) The applicant is an adult of good moral character.

 

 5        (d) The applicant is not delinquent in filing any tax

 

 6  returns with a taxing agency; paying any taxes, interest, or

 

 7  penalties; paying any judgments due to a government agency;

 

 8  repaying government-insured student loans; or paying child

 

 9  support.

 

10        (e) The applicant will not hire or contract with any

 

11  individual in the course of operating a licensed facility without

 

12  first conducting a criminal history check in the manner

 

13  prescribed in rules promulgated under this article.

 

14        (f) The premises were inspected and the inspection of the

 

15  premises and the operations of the applicant did not reveal any

 

16  reason to deny the license.

 

17        (g) The criminal history check conducted under subsection

 

18  (2) did not reveal any felony convictions or any convictions

 

19  involving a controlled substance.

 

20        (h) Any other criteria established in rules promulgated

 

21  under this article.

 

22        (2) At the time of filing an application for issuance or

 

23  renewal of a pharmaceutical-grade cannabis licensed facility

 

24  license, an applicant shall submit a set of his or her

 

25  fingerprints and file personal history information concerning his

 

26  or her qualifications for a license under this article. The

 

27  department shall submit the fingerprints to the department of

 


 1  state police for the purpose of conducting a fingerprint-based

 

 2  criminal history check. Fingerprints shall be submitted in a form

 

 3  and manner prescribed by the department of state police and shall

 

 4  be subject to normal fingerprinting fees. The department of state

 

 5  police shall forward the fingerprints to the federal bureau of

 

 6  investigation for the purpose of conducting a fingerprint-based

 

 7  criminal history check. The department may acquire a name-based

 

 8  criminal history check for an applicant who has twice submitted

 

 9  to a fingerprint-based criminal history check under this part and

 

10  whose fingerprints are unclassifiable. An applicant who has

 

11  previously submitted fingerprints under this part may request

 

12  that the fingerprints on file be used. The department shall use

 

13  the information resulting from the fingerprint-based criminal

 

14  history check to investigate and determine whether an applicant

 

15  is qualified to hold a license under this article. The department

 

16  may verify any of the information an applicant is required to

 

17  submit. The department of state police shall retain a copy of the

 

18  fingerprint images and shall notify the department in the event

 

19  that a licensee under this article is arrested or convicted. The

 

20  federal bureau of investigation may retain a copy of the

 

21  fingerprint images to provide notification if a licensee under

 

22  this article is arrested or convicted. When notified of an

 

23  updated arrest or conviction, the department shall determine

 

24  whether a licensee is still qualified to hold a license under

 

25  this article. The department shall notify the department of state

 

26  police to deactivate notification when an individual ceases to be

 

27  a licensee under this article.

 


 1        Sec. 8209. The department may delegate the duty of

 

 2  inspections for approval or renewal of pharmaceutical-grade

 

 3  cannabis licensed facility licenses to a local health department

 

 4  that has the technical and other capabilities to protect the

 

 5  public health, safety, and welfare in this field. The delegation

 

 6  shall not take place unless the department has first consulted

 

 7  with an ad hoc committee that shall be appointed by the

 

 8  department for the purpose of advising on that delegation.

 

 9  Membership on the ad hoc committee shall include representatives

 

10  of the department, local public health agencies, and an

 

11  association that represents the pharmaceutical-grade cannabis

 

12  licensed facilities that would be subject to the inspections. If

 

13  delegated under this section, the state shall reimburse each

 

14  local health department the full amount of the fees collected, as

 

15  reimbursement for the cost of inspection, on vouchers certified

 

16  by the local health officer and approved by the department.

 

17        Sec. 8211. Not later than the thirtieth day before the

 

18  expiration of an annual license under this part, a person

 

19  operating a pharmaceutical-grade cannabis licensed facility

 

20  seeking relicensure shall apply for license renewal and shall pay

 

21  a fee as prescribed in this article. Upon compliance by an

 

22  applicant for license renewal with the requirements of this

 

23  article and payment of the license renewal fee, the department

 

24  shall issue a renewal license.

 

25                             PART 83

 

26    PHARMACEUTICAL-GRADE CANNABIS LICENSED FACILITY OPERATIONS

 

27        Sec. 8301. A pharmaceutical-grade cannabis licensed facility

 


 1  shall establish legal control of its physical location. The

 

 2  physical location shall meet all applicable state and local

 

 3  zoning laws.

 

 4        Sec. 8303. (1) A pharmaceutical-grade cannabis licensed

 

 5  facility shall maintain on the premises a record of the name,

 

 6  address, and date of birth of each officer, director, partner,

 

 7  member, manager, or employee of that licensed facility. The

 

 8  licensed facility shall obtain the individual's identification

 

 9  and have a criminal history check conducted to determine if that

 

10  individual is qualified to work at or be associated with the

 

11  licensed facility under this article.

 

12        (2) A pharmaceutical-grade cannabis licensed facility shall

 

13  notify the department in writing within 10 days after an officer,

 

14  director, partner, member, manager, or employee ceases to work at

 

15  or otherwise be associated with the licensed facility.

 

16        (3) A pharmaceutical-grade cannabis licensed facility shall

 

17  not acquire, possess, cultivate, deliver, transfer, transport,

 

18  supply, sell, or dispense pharmaceutical-grade cannabis for any

 

19  purpose except as provided in this article.

 

20        (4) A pharmaceutical-grade cannabis licensed facility shall

 

21  not possess more than the amount of pharmaceutical-grade cannabis

 

22  plants or dried pharmaceutical-grade cannabis allowed in its

 

23  inventory as prescribed in rules promulgated under this article.

 

24        (5) A pharmaceutical-grade cannabis licensed facility shall

 

25  destroy all marihuana that it cultivates or that is otherwise in

 

26  its possession that is determined not to be pharmaceutical-grade

 

27  cannabis. A licensed facility shall keep records of its

 


 1  activities under this subsection in order to verify its

 

 2  compliance to the department.

 

 3        (6) Pharmaceutical-grade cannabis shall meet the following

 

 4  standards:

 

 

5                             Microbiological

Microbiological Analysis             FPL Specifications

7  Total coliforms                      <3 MPN/g

8  Std. plate count aerobic             <100 CFU/g

9  Std. plate count anaerobic           <100 CFU/g

10 Escherichia coli                     Absent

11 Salmonella                           Absent

12 Staphylococcus aureus                <100 CFU/g

13 Yeast and molds                      <100 CFU/g

14

15                               Mycotoxins

16 Test                                 Specification

17 Aflatoxin B1                         <20 µg/kg of substance

18 Aflatoxin B2                         <20 µg/kg of substance

19 Aflatoxin O1                         <20 µg/kg of substance

20 Aflatoxin O2                         <20 µg/kg of substance

21 Ochratoxin A                         <20 µg/kg of substance

22

23                              Heavy Metals

24 Metal                                NHP Acceptable Limits

25                                      µg/kg bw/day

26 Arsenic                              <0.14

27 Cadmium                              <0.09

28 Lead                                 <0.29

29 Mercury                              <0.29

 

 


 1        (7) A licensed facility shall irradiate all pharmaceutical-

 

 2  grade cannabis in the manner determined by the department before

 

 3  delivering that pharmaceutical-grade cannabis to another person.

 

 4        Sec. 8305. A pharmaceutical-grade cannabis licensed facility

 

 5  may be a profit or nonprofit entity.

 

 6        Sec. 8307. A pharmaceutical-grade cannabis licensed facility

 

 7  may operate on any calendar days of the week, but shall do all of

 

 8  the following:

 

 9        (a) Prohibit smoking or consumption of marihuana on its

 

10  premises.

 

11        (b) Maintain all records required under this article on its

 

12  premises.

 

13        (c) Make the licensed premises available for inspection and

 

14  search by the department, by law enforcement officers, and by any

 

15  other state, federal, or local governmental agency authorized by

 

16  law or department rule to inspect the premises of the licensed

 

17  facility under this act, during regular business hours and when

 

18  the licensed premises are occupied by the licensee or a clerk,

 

19  servant, agent, or employee of the licensee. Evidence of a

 

20  violation of this act or rules promulgated under this act

 

21  discovered under this subsection may be seized and used in an

 

22  administrative or court proceeding.

 

23        Sec. 8309. In addition to the provisions of section 2946 of

 

24  the revised judicature act of 1961, 1961 PA 236, MCL 600.2946, in

 

25  a product liability action against a pharmaceutical-grade

 

26  cannabis licensed facility, pharmaceutical-grade cannabis is not

 

27  defective or unreasonably dangerous, and the pharmaceutical-grade

 


 1  cannabis licensed facility is not liable, if the product sold was

 

 2  tested and determined to meet the standards for pharmaceutical-

 

 3  grade cannabis under this article.

 

 4                             PART 84

 

 5      SALE AND DISTRIBUTION OF PHARMACEUTICAL-GRADE CANNABIS

 

 6        Sec. 8401. (1) A pharmaceutical-grade cannabis licensed

 

 7  facility shall not sell or otherwise distribute pharmaceutical-

 

 8  grade cannabis except as provided in this section.

 

 9        (2) A pharmaceutical-grade cannabis licensed facility shall

 

10  not sell or otherwise distribute pharmaceutical-grade cannabis

 

11  directly to the public.

 

12        (3) A pharmaceutical-grade cannabis licensed facility shall

 

13  sell pharmaceutical-grade cannabis only to pharmacies licensed in

 

14  this state to be dispensed only to eligible patients and to other

 

15  pharmaceutical-grade cannabis licensed facilities for purposes

 

16  provided for under this article. Pharmaceutical-grade cannabis

 

17  dispensed by a pharmacist or retail pharmacy licensed in this

 

18  state shall have affixed upon each package and container in which

 

19  the cannabis is contained a label showing in legible English the

 

20  name and address of the manufacturer, the date the prescription

 

21  is filled, the dosage, including the total percentage of THC and

 

22  total percentage of CBD, the name of the patient, and the name

 

23  and address of the dispensing pharmacy.

 

24        (4) A pharmaceutical-grade cannabis licensed facility may

 

25  sell or otherwise distribute pharmaceutical-grade cannabis to

 

26  pharmacies for sale or distribution only to eligible patients as

 

27  provided in this article.

 


 1        (5) A pharmaceutical-grade cannabis licensed facility shall

 

 2  report to the department on a quarterly basis all quantities of

 

 3  pharmaceutical-grade cannabis sold to licensed pharmacists,

 

 4  retail pharmacies, and other pharmaceutical-grade cannabis

 

 5  licensed facilities. The report shall be in writing and shall

 

 6  include the name and address of each pharmacist, retail pharmacy,

 

 7  and pharmaceutical-grade cannabis licensed facility to which the

 

 8  pharmaceutical-grade cannabis is sold. A report under this sub-

 

 9  section may be transmitted electronically, if the transmission is

 

10  ultimately reduced to writing.

 

11                             PART 85

 

12                           ENFORCEMENT

 

13        Sec. 8501. (1) The department shall enforce this article and

 

14  the applicable provisions of article 7 and shall conduct at least

 

15  1 inspection of each pharmaceutical-grade cannabis licensed

 

16  facility during the term of its license to ensure compliance with

 

17  the requirements of this article and article 7.

 

18        (2) Upon a finding that an emergency exists requiring

 

19  immediate action to protect the public health, safety, and

 

20  welfare, the department may issue an order to suspend the license

 

21  of a pharmaceutical-grade cannabis licensed facility without

 

22  notice or hearing. The order shall recite the existence of the

 

23  emergency and the facts supporting a determination of the need to

 

24  protect public health, safety, and welfare. Notwithstanding this

 

25  act or the administrative procedures act of 1969, the order shall

 

26  be effective immediately. A person to whom the order is directed

 

27  shall comply immediately but, on application to the department,

 


 1  shall be afforded a hearing within 15 days. On the basis of the

 

 2  hearing, the order of summary suspension shall be continued,

 

 3  modified, or dissolved not later than 30 days after the hearing.

 

 4        Sec. 8503. (1) In addition to any other penalties prescribed

 

 5  or remedies provided in this article, article 7, and article 15,

 

 6  the department may, on its own motion or on receipt of a

 

 7  complaint, and after an investigation and a hearing before an

 

 8  administrative law judge at which the pharmaceutical-grade

 

 9  cannabis licensed facility licensee is afforded an opportunity to

 

10  be heard, suspend or revoke a facility license issued under this

 

11  article. The department may suspend or revoke a license for any

 

12  violation by the licensee, a board member, an agent, or an

 

13  employee of the licensed facility or of any of the terms,

 

14  conditions, or provisions of the license issued by the

 

15  department. The department may administer oaths and issue

 

16  subpoenas to require the presence of persons and the production

 

17  of papers, books, and records necessary to the determination of

 

18  any hearing that the department is authorized to conduct.

 

19        (2) The department shall provide notice of suspension or

 

20  revocation, as well as any required notice of a hearing, by

 

21  mailing the same in writing to the licensed facility at the

 

22  address contained in the license. If a license is suspended or

 

23  revoked, no part of the fees paid for the license under this

 

24  article or under article 7 shall be returned to the licensee. The

 

25  department may summarily suspend a license without notice pending

 

26  any prosecution, investigation, or public hearing.

 

27        Sec. 8505. In any licensing hearing held by the department

 


 1  under this article, a person shall not refuse, upon request of

 

 2  the department, to testify or provide other information on the

 

 3  grounds of self-incrimination. Any testimony or other information

 

 4  produced in the hearing and any information directly or

 

 5  indirectly derived from the testimony or other information shall

 

 6  not be used against the person in any criminal prosecution based

 

 7  on a violation of this article except a prosecution for perjury

 

 8  committed while testifying. Continued refusal to testify or

 

 9  provide other information is grounds for the suspension or

 

10  revocation of a license or registration card issued under this

 

11  article.

 

12        Sec. 8507. (1) The owner, operator, or agent of a

 

13  pharmaceutical-grade cannabis licensed facility who knowingly

 

14  violates this article or who establishes or operates a

 

15  pharmaceutical-grade cannabis licensed facility in violation of

 

16  this article is guilty of a crime as follows:

 

17        (a) Except as provided in subdivisions (b) and (c), the

 

18  person is guilty of a misdemeanor punishable by imprisonment for

 

19  not more than 90 days or a fine of not more than $10,000.00, or

 

20  both.

 

21        (b) Except as provided in subdivision (c), if the person has

 

22  1 prior conviction for violating this article, the person is

 

23  guilty of a misdemeanor punishable by imprisonment for not more

 

24  than 180 days or a fine of not more than $50,000.00, or both.

 

25        (c) If the person has 2 or more prior convictions for

 

26  violating this article, or intentionally violates this article,

 

27  the person is guilty of a misdemeanor punishable by imprisonment

 


 1  for not more than 2 years or a fine of not more than $100,000.00,

 

 2  or both.

 

 3        (2) Subsection (1) does not prohibit the person from being

 

 4  charged with, convicted of, or sentenced for any other violation

 

 5  of law committed by the person while violating this section.

 

 6        Sec. 8509. Except as otherwise provided in this article, a

 

 7  pharmaceutical-grade cannabis licensed facility that has been

 

 8  issued a license under this article, or any owner, operator,

 

 9  officer, director, partner, member, manager, or employee of the

 

10  licensed facility, is not subject to arrest, prosecution, or

 

11  penalty in any manner, or denied any right or privilege,

 

12  including, but not limited to, civil penalty or disciplinary

 

13  action by a business or occupational or professional licensing

 

14  board or bureau, for the cultivation, distribution, and sale of

 

15  pharmaceutical-grade cannabis under this article for use by

 

16  eligible patients in the manner prescribed in this article.

 

17        Sec. 8511. Except as otherwise provided in this section, a

 

18  local governmental unit shall not enact or enforce an ordinance

 

19  regarding pharmaceutical-grade cannabis licensed facilities. A

 

20  local governmental unit may limit the number of pharmaceutical-

 

21  grade cannabis licensed facilities that may operate in the local

 

22  governmental unit and may enact reasonable zoning regulations

 

23  applicable to pharmaceutical-grade cannabis licensed facilities

 

24  based on local government zoning, health, and safety laws for the

 

25  cultivation, distribution, and sale of pharmaceutical-grade

 

26  cannabis.

 

27        Sec. 16169. (1) If an individual employed by or under

 


 1  contract to the department has reasonable cause to believe that a

 

 2  health professional may be impaired, the individual shall

 

 3  transmit the information to the committee either orally or in

 

 4  writing. Upon receipt of the information, the committee shall

 

 5  request the program consultant described in section 16168 to

 

 6  determine whether or not the health professional may be impaired.

 

 7        (2) If, based on the information received by the department

 

 8  under section 16168(2), the department determines that the health

 

 9  professional involved may be a threat to the public health,

 

10  safety, or welfare and has violated this article, or article 7,

 

11  or article 8 or the rules promulgated under this article, or

 

12  article 7, or article 8, the department may proceed under

 

13  sections 16211 and 16231.

 

14        Sec. 16170a. (1) The identity of an individual submitting

 

15  information to the committee or the department regarding the

 

16  suspected impairment of a health professional is confidential.

 

17        (2) The identity of a health professional who participates

 

18  in the health professional recovery program is confidential and

 

19  is not subject to disclosure under discovery or subpoena or the

 

20  freedom of information act, Act No. 442 of the Public Acts of

 

21  1976, being sections 15.231 to 15.246 of the Michigan Compiled

 

22  Laws, 1976 PA 442, MCL 15.231 to 15.246, unless the health

 

23  professional fails to satisfactorily participate in and complete

 

24  a treatment plan prescribed under the health professional

 

25  recovery program or violates section 16170(3).

 

26        (3) If a health professional successfully participates in

 

27  and completes a treatment plan prescribed under the health

 


 1  professional recovery program, as determined by the committee,

 

 2  the department shall destroy all records pertaining to the

 

 3  impairment of the health professional, including records

 

 4  pertaining to the health professional's participation in the

 

 5  treatment plan, upon the expiration of 5 years after the date of

 

 6  the committee's determination. This subsection does not apply to

 

 7  records pertaining to a violation of this article, or article 7,

 

 8  or article 8 or a rule promulgated under this article, or article

 

 9  7, or article 8.

 

10        Sec. 16174. (1) An individual who is licensed or registered

 

11  under this article shall meet all of the following requirements:

 

12        (a) Be 18 or more years of age.

 

13        (b) Be of good moral character.

 

14        (c) Have a specific education or experience in the health

 

15  profession or in a health profession subfield or health

 

16  profession specialty field of the health profession, or training

 

17  equivalent, or both, as prescribed by this article or rules of a

 

18  board necessary to promote safe and competent practice and

 

19  informed consumer choice.

 

20        (d) Have a working knowledge of the English language as

 

21  determined in accordance with minimum standards established for

 

22  that purpose by the department.

 

23        (e) Pay the appropriate fees as prescribed in this article.

 

24        (2) In addition to the requirements of subsection (1), an

 

25  applicant for licensure, registration, specialty certification,

 

26  or a health profession specialty subfield license under this

 

27  article shall meet all of the following requirements:

 


 1        (a) Establish that disciplinary proceedings before a similar

 

 2  licensure, registration, or specialty licensure or specialty

 

 3  certification board of this or any other state, of the United

 

 4  States military, of the federal government, or of another country

 

 5  are not pending against the applicant.

 

 6        (b) Establish that if sanctions have been imposed against

 

 7  the applicant by a similar licensure, registration, or specialty

 

 8  licensure or specialty certification board of this or any other

 

 9  state, of the United States military, of the federal government,

 

10  or of another country based upon grounds that are substantially

 

11  similar to those set forth in this article, or article 7, or

 

12  article 8 or the rules promulgated under this article, or article

 

13  7, or article 8, as determined by the board or task force to

 

14  which the applicant applies, the sanctions are not in force at

 

15  the time of application. This subdivision does not apply to an

 

16  application for licensure that the board may grant under section

 

17  17011(4) or 17511(2).

 

18        (c) File with the board or task force a written, signed

 

19  consent to the release of information regarding a disciplinary

 

20  investigation involving the applicant conducted by a similar

 

21  licensure, registration, or specialty licensure or specialty

 

22  certification board of this or any other state, of the United

 

23  States military, of the federal government, or of another

 

24  country.

 

25        (3) Beginning October 1, 2008, an applicant for initial

 

26  licensure or registration shall submit his or her fingerprints to

 

27  the department of state police to have a criminal history check

 


 1  conducted and request that the department of state police forward

 

 2  his or her fingerprints to the federal bureau of investigation

 

 3  for a national criminal history check. The department of state

 

 4  police shall conduct a criminal history check and request the

 

 5  federal bureau of investigation to make a determination of the

 

 6  existence of any national criminal history pertaining to the

 

 7  applicant. The department of state police shall provide the

 

 8  department with a written report of the criminal history check if

 

 9  the criminal history check contains any criminal history record

 

10  information. The department of state police shall forward the

 

11  results of the federal bureau of investigation determination to

 

12  the department within 30 days after the request is made. The

 

13  department shall notify the board and the applicant in writing of

 

14  the type of crime disclosed on the federal bureau of

 

15  investigation determination without disclosing the details of the

 

16  crime. The department of state police may charge a reasonable fee

 

17  to cover the cost of conducting the criminal history check. The

 

18  criminal history record information obtained under this

 

19  subsection shall be used only for the purpose of evaluating an

 

20  applicant's qualifications for licensure or registration for

 

21  which he or she has applied. A member of the board shall not

 

22  disclose the report or its contents to any person who is not

 

23  directly involved in evaluating the applicant's qualifications

 

24  for licensure or registration. Information obtained under this

 

25  subsection is confidential, is not subject to disclosure under

 

26  the freedom of information act, 1976 PA 442, MCL 15.231 to

 

27  15.246, and shall not be disclosed to any person except for

 


 1  purposes of this section or for law enforcement purposes.

 

 2        (4) Before granting a license, registration, specialty

 

 3  certification, or a health profession specialty field license to

 

 4  an applicant, the board or task force to which the applicant

 

 5  applies may do 1 of the following:

 

 6        (a) Make an independent inquiry into the applicant's

 

 7  compliance with the requirements described in subsection (2). If

 

 8  subsection (2)(b) applies to an application for licensure and a

 

 9  licensure or registration board or task force determines under

 

10  subsection (2)(b) that sanctions have been imposed and are in

 

11  force at the time of application, the board or task force shall

 

12  not grant a license or registration or specialty certification or

 

13  health profession specialty field license to the applicant.

 

14        (b) Require the applicant to secure from a national

 

15  association or federation of state professional licensing boards

 

16  certification of compliance with the requirements described in

 

17  subsection (2). If an application is for licensure that the board

 

18  may grant under section 17011(4) or 17511(2), the applicant is

 

19  not required to secure the certification of compliance with

 

20  respect to the requirements described in subsection (2)(b).

 

21        (5) If, after issuing a license, registration, specialty

 

22  certification, or health profession specialty field license, a

 

23  board or task force or the department determines that sanctions

 

24  have been imposed against the licensee or registrant by a similar

 

25  licensure or registration or specialty licensure or specialty

 

26  certification board as described in subsection (2)(b), the

 

27  disciplinary subcommittee may impose appropriate sanctions upon

 


 1  the licensee or registrant. The licensee or registrant may

 

 2  request a show cause hearing before a hearing examiner to

 

 3  demonstrate why the sanctions should not be imposed.

 

 4        (6) An applicant for licensure, registration, specialty

 

 5  certification, or a health profession specialty field license who

 

 6  is or has been licensed, registered, or certified in a health

 

 7  profession or specialty by another state or country shall

 

 8  disclose that fact on the application form.

 

 9        Sec. 16192. (1) A licensee or registrant shall report to the

 

10  department a change in name or mailing address not later than 30

 

11  days after the change occurs.

 

12        (2) The department may serve a notice of hearing or a

 

13  complaint on an applicant, licensee, or registrant in an action

 

14  or proceeding for a violation of this article, or article 7, or

 

15  article 8 or a rule promulgated under this article, or article 7,

 

16  or article 8 by regular mail and by certified mail, return

 

17  receipt requested, to the applicant's, licensee's, or

 

18  registrant's last known address, by serving the notice on the

 

19  applicant, licensee, or registrant, or by making a reasonable

 

20  attempt to serve the notice on the applicant, licensee, or

 

21  registrant. For purposes of this subsection, if service is by

 

22  mail, service is effective 3 days after the date of mailing, and

 

23  nondelivery does not affect the validity of the service if the

 

24  nondelivery was caused by the refusal of the applicant, licensee,

 

25  or registrant to accept service.

 

26        (3) A license or registration is not transferable.

 

27        Sec. 16216. (1) The chair of each board or task force shall

 


 1  appoint 1 or more disciplinary subcommittees for that board or

 

 2  task force. A disciplinary subcommittee for a board or task force

 

 3  shall consist of 2 public members and 3 professional members from

 

 4  the board or task force. The chair of a board or task force shall

 

 5  not serve as a member of a disciplinary subcommittee.

 

 6        (2) A final decision of the disciplinary subcommittee

 

 7  finding a violation of this article, or article 7, or article 8

 

 8  shall be by a majority vote of the members appointed and serving

 

 9  on the disciplinary subcommittee.

 

10        (3) A final decision of the disciplinary subcommittee

 

11  imposing a sanction under this article, or article 7, or article

 

12  8 or a final decision of the disciplinary subcommittee other than

 

13  a final decision described in subsection (2) requires a majority

 

14  vote of the members appointed and serving on the disciplinary

 

15  subcommittee with an affirmative vote by at least 1 public

 

16  member.

 

17        (4) The chairperson of each disciplinary subcommittee shall

 

18  be a public member and shall be appointed by the chair of the

 

19  board or task force.

 

20        Sec. 16221. The department may investigate activities

 

21  related to the practice of a health profession by a licensee, a

 

22  registrant, or an applicant for licensure or registration. The

 

23  department may hold hearings, administer oaths, and order the

 

24  taking of relevant testimony and shall report its findings to the

 

25  appropriate disciplinary subcommittee. The disciplinary

 

26  subcommittee shall proceed under section 16226 if it finds that 1

 

27  or more of the following grounds exist:

 


 1        (a) A violation of general duty, consisting of negligence or

 

 2  failure to exercise due care, including negligent delegation to

 

 3  or supervision of employees or other individuals, whether or not

 

 4  injury results, or any conduct, practice, or condition that

 

 5  impairs, or may impair, the ability to safely and skillfully

 

 6  practice the health profession.

 

 7        (b) Personal disqualifications, consisting of 1 or more of

 

 8  the following:

 

 9        (i) Incompetence.

 

10        (ii) Subject to sections 16165 to 16170a, substance use

 

11  disorder as defined in section 100d of the mental health code,

 

12  1974 PA 258, MCL 330.1100d.

 

13        (iii) Mental or physical inability reasonably related to and

 

14  adversely affecting the licensee's ability to practice in a safe

 

15  and competent manner.

 

16        (iv) Declaration of mental incompetence by a court of

 

17  competent jurisdiction.

 

18        (v) Conviction of a misdemeanor punishable by imprisonment

 

19  for a maximum term of 2 years; a misdemeanor involving the

 

20  illegal delivery, possession, or use of a controlled substance;

 

21  or a felony. A certified copy of the court record is conclusive

 

22  evidence of the conviction.

 

23        (vi) Lack of good moral character.

 

24        (vii) Conviction of a criminal offense under section 520e or

 

25  520g of the Michigan penal code, 1931 PA 328, MCL 750.520e and

 

26  750.520g. A certified copy of the court record is conclusive

 

27  evidence of the conviction.

 


 1        (viii) Conviction of a violation of section 492a of the

 

 2  Michigan penal code, 1931 PA 328, MCL 750.492a. A certified copy

 

 3  of the court record is conclusive evidence of the conviction.

 

 4        (ix) Conviction of a misdemeanor or felony involving fraud in

 

 5  obtaining or attempting to obtain fees related to the practice of

 

 6  a health profession. A certified copy of the court record is

 

 7  conclusive evidence of the conviction.

 

 8        (x) Final adverse administrative action by a licensure,

 

 9  registration, disciplinary, or certification board involving the

 

10  holder of, or an applicant for, a license or registration

 

11  regulated by another state or a territory of the United States,

 

12  by the United States military, by the federal government, or by

 

13  another country. A certified copy of the record of the board is

 

14  conclusive evidence of the final action.

 

15        (xi) Conviction of a misdemeanor that is reasonably related

 

16  to or that adversely affects the licensee's ability to practice

 

17  in a safe and competent manner. A certified copy of the court

 

18  record is conclusive evidence of the conviction.

 

19        (xii) Conviction of a violation of section 430 of the

 

20  Michigan penal code, 1931 PA 328, MCL 750.430. A certified copy

 

21  of the court record is conclusive evidence of the conviction.

 

22        (xiii) Conviction of a criminal offense under section 520b,

 

23  520c, 520d, or 520f of the Michigan penal code, 1931 PA 328, MCL

 

24  750.520b, 750.520c, 750.520d, and 750.520f. A certified copy of

 

25  the court record is conclusive evidence of the conviction.

 

26        (c) Prohibited acts, consisting of 1 or more of the

 

27  following:

 


 1        (i) Fraud or deceit in obtaining or renewing a license or

 

 2  registration.

 

 3        (ii) Permitting a license or registration to be used by an

 

 4  unauthorized person.

 

 5        (iii) Practice outside the scope of a license.

 

 6        (iv) Obtaining, possessing, or attempting to obtain or

 

 7  possess a controlled substance as defined in section 7104 or a

 

 8  drug as defined in section 7105 without lawful authority; or

 

 9  selling, prescribing, giving away, or administering drugs for

 

10  other than lawful diagnostic or therapeutic purposes.

 

11        (d) Unethical business practices, consisting of 1 or more of

 

12  the following:

 

13        (i) False or misleading advertising.

 

14        (ii) Dividing fees for referral of patients or accepting

 

15  kickbacks on medical or surgical services, appliances, or

 

16  medications purchased by or in behalf of patients.

 

17        (iii) Fraud or deceit in obtaining or attempting to obtain

 

18  third party reimbursement.

 

19        (e) Unprofessional conduct, consisting of 1 or more of the

 

20  following:

 

21        (i) Misrepresentation to a consumer or patient or in

 

22  obtaining or attempting to obtain third party reimbursement in

 

23  the course of professional practice.

 

24        (ii) Betrayal of a professional confidence.

 

25        (iii) Promotion for personal gain of an unnecessary drug,

 

26  device, treatment, procedure, or service.

 

27        (iv) Either of the following:

 


 1        (A) A requirement by a licensee other than a physician that

 

 2  an individual purchase or secure a drug, device, treatment,

 

 3  procedure, or service from another person, place, facility, or

 

 4  business in which the licensee has a financial interest.

 

 5        (B) A referral by a physician for a designated health

 

 6  service that violates 42 USC 1395nn or a regulation promulgated

 

 7  under that section. For purposes of this subdivision, 42 USC

 

 8  1395nn and the regulations promulgated under that section as they

 

 9  exist on June 3, 2002 are incorporated by reference. A

 

10  disciplinary subcommittee shall apply 42 USC 1395nn and the

 

11  regulations promulgated under that section regardless of the

 

12  source of payment for the designated health service referred and

 

13  rendered. If 42 USC 1395nn or a regulation promulgated under that

 

14  section is revised after June 3, 2002, the department shall

 

15  officially take notice of the revision. Within 30 days after

 

16  taking notice of the revision, the department shall decide

 

17  whether or not the revision pertains to referral by physicians

 

18  for designated health services and continues to protect the

 

19  public from inappropriate referrals by physicians. If the

 

20  department decides that the revision does both of those things,

 

21  the department may promulgate rules to incorporate the revision

 

22  by reference. If the department does promulgate rules to

 

23  incorporate the revision by reference, the department shall not

 

24  make any changes to the revision. As used in this sub-

 

25  subparagraph, "designated health service" means that term as

 

26  defined in 42 USC 1395nn and the regulations promulgated under

 

27  that section and "physician" means that term as defined in

 


 1  sections 17001 and 17501.

 

 2        (v) For a physician who makes referrals pursuant to 42 USC

 

 3  1395nn or a regulation promulgated under that section, refusing

 

 4  to accept a reasonable proportion of patients eligible for

 

 5  Medicaid and refusing to accept payment from Medicaid or Medicare

 

 6  as payment in full for a treatment, procedure, or service for

 

 7  which the physician refers the individual and in which the

 

 8  physician has a financial interest. A physician who owns all or

 

 9  part of a facility in which he or she provides surgical services

 

10  is not subject to this subparagraph if a referred surgical

 

11  procedure he or she performs in the facility is not reimbursed at

 

12  a minimum of the appropriate Medicaid or Medicare outpatient fee

 

13  schedule, including the combined technical and professional

 

14  components.

 

15        (f) Beginning June 3, 2003, the department of consumer and

 

16  industry services shall prepare the first of 3 annual reports on

 

17  the effect of 2002 PA 402 on access to care for the uninsured and

 

18  Medicaid patients. The department shall report on the number of

 

19  referrals by licensees of uninsured and Medicaid patients to

 

20  purchase or secure a drug, device, treatment, procedure, or

 

21  service from another person, place, facility, or business in

 

22  which the licensee has a financial interest.

 

23        (g) Failure to report a change of name or mailing address

 

24  within 30 days after the change occurs.

 

25        (h) A violation, or aiding or abetting in a violation, of

 

26  this article or of a rule promulgated under this article.

 

27        (i) Failure to comply with a subpoena issued pursuant to

 


 1  this part, failure to respond to a complaint issued under this

 

 2  article, or article 7, or article 8, failure to appear at a

 

 3  compliance conference or an administrative hearing, or failure to

 

 4  report under section 16222 or 16223.

 

 5        (j) Failure to pay an installment of an assessment levied

 

 6  under the insurance code of 1956, 1956 PA 218, MCL 500.100 to

 

 7  500.8302, within 60 days after notice by the appropriate board.

 

 8        (k) A violation of section 17013 or 17513.

 

 9        (l) Failure to meet 1 or more of the requirements for

 

10  licensure or registration under section 16174.

 

11        (m) A violation of section 17015, 17015a, 17017, 17515, or

 

12  17517.

 

13        (n) A violation of section 17016 or 17516.

 

14        (o) Failure to comply with section 9206(3).

 

15        (p) A violation of section 5654 or 5655.

 

16        (q) A violation of section 16274.

 

17        (r) A violation of section 17020 or 17520.

 

18        (s) A violation of the medical records access act, 2004 PA

 

19  47, MCL 333.26261 to 333.26271.

 

20        (t) A violation of section 17764(2).

 

21        Sec. 16222. (1) A licensee or registrant having who has

 

22  knowledge that another licensee or registrant has committed a

 

23  violation under section 16221, or article 7, or article 8 or a

 

24  rule promulgated under article 7 or article 8 shall report the

 

25  conduct and the name of the subject of the report to the

 

26  department. Information obtained by the department under this

 

27  subsection is confidential and is subject to sections 16238 and

 


 1  16244. Failure of a licensee or registrant to make a report under

 

 2  this subsection does not give rise to a civil cause of action for

 

 3  damages against the licensee or registrant, but the licensee or

 

 4  registrant is subject to administrative action under sections

 

 5  16221 and 16226. This subsection does not apply to a licensee or

 

 6  registrant who obtains the knowledge of a violation while

 

 7  providing professional services to the licensee or registrant to

 

 8  whom the knowledge applies, who is serving on a duly constituted

 

 9  ethics or peer review committee of a professional association, or

 

10  who is serving on a committee assigned a professional review

 

11  function in a health facility or agency.

 

12        (2) Unless the licensee or registrant making the a report

 

13  under subsection (1) otherwise agrees in writing, the identity of

 

14  the licensee or registrant making the report shall remain

 

15  confidential unless disciplinary proceedings under this part are

 

16  initiated against the subject of the report and the licensee or

 

17  registrant making the report is required to testify in the

 

18  proceedings.

 

19        (3) A licensee or registrant shall notify the department of

 

20  a criminal conviction or a disciplinary licensing or registration

 

21  action taken by another state against the licensee or registrant

 

22  within 30 days after the date of the conviction or action. This

 

23  subsection includes, but is not limited to, a disciplinary action

 

24  that is stayed pending appeal.

 

25        Sec. 16226. (1) After finding the existence of 1 or more of

 

26  the grounds for disciplinary subcommittee action listed in

 

27  section 16221, a disciplinary subcommittee shall impose 1 or more

 


 1  of the following sanctions for each violation:

 

 

 Violations of Section 16221                   Sanctions

Subdivision (a), (b)(ii),           Probation, limitation, denial,

(b)(iv), (b)(vi), or                suspension, revocation,

(b)(vii)                            restitution, community service,

                                   or fine.

                                  

Subdivision (b)(viii)               Revocation or denial.

                                  

10 Subdivision (b)(i),                Limitation, suspension,

11 (b)(iii), (b)(v),                   revocation, denial,

12 (b)(ix), (b)(x),                   probation, restitution,

13 (b)(xi), or (b)(xii)                 community service, or fine.

14                                   

15 Subdivision (b)(xiii)               Probation, limitation, denial,

16                                    suspension, revocation,

17                                    restitution, community service,

18                                    fine, or, subject to subsection

19                                    (5), permanent revocation.

20                                   

21                                   

22 Subdivision (c)(i)                 Denial, revocation, suspension,

23                                    probation, limitation, community

24                                    service, or fine.

25                                   

26 Subdivision (c)(ii)                 Denial, suspension, revocation,

27                                    restitution, community service,

28                                    or fine.

29                                   

30 Subdivision (c)(iii)                Probation, denial, suspension,


                                   revocation, restitution,

                                   community service, or fine.

                                  

Subdivision (c)(iv)                Fine, probation, denial,

or (d)(iii)                         suspension, revocation, community

                                   service, or restitution.

                                  

Subdivision (d)(i)                 Reprimand, fine, probation,

or (d)(ii)                          community service, denial,

10                                    or restitution.

11                                   

12 Subdivision (e)(i)                 Reprimand, fine, probation,

13                                    limitation, suspension, community

14                                    service, denial, or restitution.

15                                   

16 Subdivision (e)(ii)                 Reprimand, probation,

17 or (i)                            suspension, restitution,

18                                    community service, denial, or

19                                    fine.

20                                   

21 Subdivision (e)(iii),               Reprimand, fine, probation,

22 (e)(iv), or (e)(v)                 suspension, revocation,

23                                    limitation, community service,

24                                    denial, or restitution.

25                                   

26 Subdivision (g)                   Reprimand or fine.

27                                   

28 Subdivision (h) or (s)            Reprimand, probation, denial,

29                                    suspension, revocation,

30                                    limitation, restitution,

31                                    community service, or fine.


                                  

Subdivision (j)                   Suspension or fine.

                                  

Subdivision (k), (p),             Reprimand or fine.

or (r)                           

                                  

Subdivision (l)                    Reprimand, denial, or

                                   limitation.

                                  

10 Subdivision (m) or (o)            Denial, revocation, restitution,

11                                    probation, suspension,

12                                    limitation, reprimand, or fine.

13                                   

14 Subdivision (n)                   Revocation or denial.

15                                   

16 Subdivision (q)                   Revocation.

17                                   

18 Subdivision (t)                   Revocation, fine, and

19                                    restitution.

 

 

20        (2) Determination of sanctions for violations under this

 

21  section shall be made by a disciplinary subcommittee. If, during

 

22  judicial review, the court of appeals determines that a final

 

23  decision or order of a disciplinary subcommittee prejudices

 

24  substantial rights of the petitioner for 1 or more of the grounds

 

25  listed in section 106 of the administrative procedures act of

 

26  1969, 1969 PA 306, MCL 24.306, and holds that the final decision

 

27  or order is unlawful and is to be set aside, the court shall

 

28  state on the record the reasons for the holding and may remand

 

29  the case to the disciplinary subcommittee for further


 

 1  consideration.

 

 2        (3) A disciplinary subcommittee may impose a fine of up to,

 

 3  but not exceeding, $250,000.00 for a violation of section

 

 4  16221(a) or (b).

 

 5        (4) A disciplinary subcommittee may require a licensee or

 

 6  registrant or an applicant for licensure or registration who has

 

 7  violated this article, or article 7, or article 8 or a rule

 

 8  promulgated under this article, or article 7, or article 8 to

 

 9  satisfactorily complete an educational program, a training

 

10  program, or a treatment program, a mental, physical, or

 

11  professional competence examination, or a combination of those

 

12  programs and examinations.

 

13        (5) A disciplinary subcommittee shall not impose the

 

14  sanction of permanent revocation for a violation of section

 

15  16221(b)(xiii) unless the violation occurred while the licensee or

 

16  registrant was acting within the health profession for which he

 

17  or she was licensed or registered.

 

18        Sec. 16231. (1) A person or governmental entity who that

 

19  believes that a violation of this article, or article 7, or

 

20  article 8 or a rule promulgated under this article, or article 7,

 

21  or article 8 exists may make an allegation of that fact to the

 

22  department in writing.

 

23        (2) If, upon reviewing an application or an allegation or a

 

24  licensee's file under section 16211(4), the department determines

 

25  there is a reasonable basis to believe the existence of a

 

26  violation of this article, or article 7, or article 8 or a rule

 

27  promulgated under this article, or article 7, or article 8, the


 

 1  department, with the authorization of the chair of the

 

 2  appropriate board or task force or his or her designee, shall

 

 3  investigate. If the chair or his or her designee fails to grant

 

 4  or deny authorization within 7 days after receipt of a request

 

 5  for authorization, the department shall investigate.

 

 6        (3) Upon the receipt of information reported pursuant to

 

 7  section 16243(2) that indicates 3 or more malpractice

 

 8  settlements, awards, or judgments against a licensee in a period

 

 9  of 5 consecutive years or 1 or more malpractice settlements,

 

10  awards, or judgments against a licensee totaling more than

 

11  $200,000.00 in a period of 5 consecutive years, whether or not a

 

12  judgment or award is stayed pending appeal, the department shall

 

13  investigate.

 

14        (4) At any time during an investigation or following the

 

15  issuance of a complaint, the department may schedule a compliance

 

16  conference pursuant to under section 92 of the administrative

 

17  procedures act of 1969, MCL 24.292. The conference may include

 

18  the applicant, licensee, registrant, or individual, the

 

19  applicant's, licensee's, registrant's, or individual's attorney,

 

20  1 member of the department's staff, and any other individuals

 

21  approved by the department. One member of the appropriate board

 

22  or task force who is not a member of the disciplinary

 

23  subcommittee with jurisdiction over the matter may attend the

 

24  conference and provide such assistance as needed. At the

 

25  compliance conference, the department shall attempt to reach

 

26  agreement. If an agreement is reached, the department shall

 

27  submit a written statement outlining the terms of the agreement,


 

 1  or a stipulation and final order, if applicable, or a request for

 

 2  dismissal to the appropriate disciplinary subcommittee for

 

 3  approval. If the agreement or stipulation and final order or

 

 4  request for dismissal is rejected by the disciplinary

 

 5  subcommittee, or if no agreement is reached, a hearing before a

 

 6  hearings examiner shall be scheduled. A party shall not make a

 

 7  transcript of the compliance conference. All records and

 

 8  documents of a compliance conference held before a complaint is

 

 9  issued are subject to section 16238.

 

10        (5) Within 90 days after an investigation is initiated under

 

11  subsection (2) or (3), the department shall do 1 or more of the

 

12  following:

 

13        (a) Issue a formal complaint.

 

14        (b) Conduct a compliance conference under subsection (4).

 

15        (c) Issue a summary suspension.

 

16        (d) Issue a cease and desist order.

 

17        (e) Dismiss the complaint.

 

18        (f) Place in the complaint file not more than 1 written

 

19  extension of not more than 30 days to take action under this

 

20  subsection.

 

21        (6) Unless the person submitting the allegation under

 

22  subsection (1) otherwise agrees in writing, the department shall

 

23  keep the identity of a person submitting the allegation

 

24  confidential until disciplinary proceedings under this part are

 

25  initiated against the subject of the allegation and the person

 

26  making the allegation is required to testify in the proceedings.

 

27        (7) The department shall serve a complaint pursuant to under


 

 1  section 16192. The department shall include in the complaint a

 

 2  notice that the applicant, licensee, registrant, or individual

 

 3  who is the subject of the complaint has 30 days from the date of

 

 4  receipt to respond in writing to the complaint.

 

 5        (8) The department shall treat the failure of the applicant,

 

 6  licensee, registrant, or individual to respond to the complaint

 

 7  within the 30-day period set forth in subsection (7) as an

 

 8  admission of the allegations contained in the complaint. The

 

 9  department shall notify the appropriate disciplinary subcommittee

 

10  of the individual's failure to respond and shall forward a copy

 

11  of the complaint to that disciplinary subcommittee. The

 

12  disciplinary subcommittee may then impose an appropriate sanction

 

13  under this article, or article 7, or article 8.

 

14        Sec. 16231a. (1) If an agreement is not reached at a

 

15  compliance conference held under section 16231(4), or if an

 

16  agreement is reached but is rejected by a disciplinary

 

17  subcommittee and the parties do not reach a new agreement, the

 

18  department shall hold a hearing before a hearings examiner

 

19  employed by or under contract to the department. If an agreement

 

20  is reached but is rejected by the disciplinary subcommittee, the

 

21  department shall not hold another compliance conference, but may

 

22  continue to try and reach a new agreement. The hearings examiner

 

23  shall conduct the hearing within 60 days after the compliance

 

24  conference at which an agreement is not reached or after the

 

25  agreement is rejected by the disciplinary subcommittee, unless a

 

26  new agreement is reached and approved by the disciplinary

 

27  subcommittee. One member of the appropriate board or task force


 

 1  who is not a member of the disciplinary subcommittee with

 

 2  jurisdiction over the matter may attend the hearing and provide

 

 3  such assistance as needed.

 

 4        (2) The hearings examiner shall determine if there are

 

 5  grounds for disciplinary action under section 16221 or if the

 

 6  applicant, licensee, or registrant has violated this article, or

 

 7  article 7, or article 8 or the rules promulgated under this

 

 8  article, or article 7, or article 8. The hearings examiner shall

 

 9  prepare recommended findings of fact and conclusions of law for

 

10  transmittal to the appropriate disciplinary subcommittee. The

 

11  hearings examiner shall not recommend or impose penalties.

 

12        (3) The applicant, licensee, or registrant who is the

 

13  subject of the complaint or the department of attorney general

 

14  may request and be granted not more than 1 continuance by the

 

15  hearings examiner for good cause shown.

 

16        (4) The applicant, licensee, or registrant may be

 

17  represented at the hearing by legal counsel. The department shall

 

18  be represented at the hearing by an assistant attorney general

 

19  from the department of attorney general. The assistant attorney

 

20  general shall not be the same individual assigned by the

 

21  department of attorney general to provide legal counsel to the

 

22  board or the special assistant attorney general described in

 

23  section 16237.

 

24        (5) Unless a continuance has been granted under subsection

 

25  (3), failure of an applicant, licensee, or registrant to appear

 

26  or be represented at a scheduled hearing shall be treated by the

 

27  hearings examiner as a default and an admission of the


 

 1  allegations contained in the complaint. The hearings examiner

 

 2  shall notify the appropriate disciplinary subcommittee of the

 

 3  individual's failure to appear and forward a copy of the

 

 4  complaint and any other relevant records to the disciplinary

 

 5  subcommittee. The disciplinary subcommittee may then impose an

 

 6  appropriate sanction under any combination of this article, or

 

 7  article 7, or both.article 8.

 

 8        Sec. 16232. (1) The department shall provide an opportunity

 

 9  for a hearing in connection with the denial, reclassification,

 

10  limitation, reinstatement, suspension, or revocation of a license

 

11  or a proceeding to reprimand, fine, order community service or

 

12  restitution, or place a licensee on probation.

 

13        (2) The department shall provide an opportunity for a

 

14  hearing in connection with the denial, limitation, suspension,

 

15  revocation, or reinstatement of a registration or a proceeding to

 

16  reprimand, fine, order community service or restitution, or place

 

17  a registrant on probation.

 

18        (3) A disciplinary subcommittee shall meet within 60 days

 

19  after receipt of the recommended findings of fact and conclusions

 

20  of law from a hearings examiner to impose a penalty.

 

21        (4) Only the department shall promulgate rules governing

 

22  hearings under this article, or article 7, article 8 and related

 

23  preliminary proceedings.

 

24        Sec. 16233. (1) The department may conduct an investigation

 

25  necessary to administer and enforce this article. Investigations

 

26  may include written, oral, or practical tests of a licensee's or

 

27  registrant's competency. The department may establish a special


 

 1  paralegal unit to assist the department.

 

 2        (2) The department may order an individual to cease and

 

 3  desist from a violation of this article, or article 7, or article

 

 4  8 or a rule promulgated under this article, or article 7, or

 

 5  article 8.

 

 6        (3) An individual ordered to cease and desist under

 

 7  subsection (2) is entitled to a hearing before a hearings

 

 8  examiner if the individual files a written request for a hearing

 

 9  within 30 days after the effective date of the cease and desist

 

10  order. The department shall subsequently present the notice, if

 

11  any, of the individual's failure to respond to a complaint, or

 

12  attend or be represented at a hearing as described in sections

 

13  16231 and 16231a, or the recommended findings of fact and

 

14  conclusions of law to the appropriate disciplinary subcommittee

 

15  to determine whether the order is to remain in effect or be

 

16  dissolved.

 

17        (4) Upon a violation of a cease and desist order issued

 

18  under subsection (2), the department of attorney general may

 

19  apply in the circuit court to restrain and enjoin, temporarily or

 

20  permanently, an individual from further violating the cease and

 

21  desist order.

 

22        (5) After consultation with the chair of the appropriate

 

23  board or task force or his or her designee, the department may

 

24  summarily suspend a license or registration if the public health,

 

25  safety, or welfare requires emergency action in accordance with

 

26  section 92 of the administrative procedures act of 1969, MCL

 

27  24.292. If a licensee or registrant is convicted of a felony; a


 

 1  misdemeanor punishable by imprisonment for a maximum term of 2

 

 2  years; or a misdemeanor involving the illegal delivery,

 

 3  possession, or use of a controlled substance, the department

 

 4  shall find that the public health, safety, or welfare requires

 

 5  emergency action and, in accordance with section 92 of the

 

 6  administrative procedures act of 1969, MCL 24.292, shall

 

 7  summarily suspend the licensee's license or the registrant's

 

 8  registration. If a licensee or registrant is convicted of a

 

 9  misdemeanor involving the illegal delivery, possession, or use of

 

10  alcohol that adversely affects the licensee's ability to practice

 

11  in a safe and competent manner, the department may find that the

 

12  public health, safety, or welfare requires emergency action and,

 

13  in accordance with section 92 of the administrative procedures

 

14  act of 1969, MCL 24.292, may summarily suspend the licensee's

 

15  license or the registrant's registration.

 

16        Sec. 16237. (1) In imposing a penalty under section

 

17  16232(3), a disciplinary subcommittee shall review the

 

18  recommended findings of fact and conclusions of law of the

 

19  hearings examiner.

 

20        (2) The department of attorney general may assign an

 

21  independent special assistant attorney general who is under

 

22  contract to the department of attorney general and is not a

 

23  member of the state classified civil service to advise the

 

24  disciplinary subcommittees on matters of law and provide other

 

25  legal assistance as necessary. A special assistant attorney

 

26  general assigned to the disciplinary subcommittees under this

 

27  subsection shall not be the same individual who represented the


 

 1  department before a hearings examiner under section 16231a(4).

 

 2        (3) In reviewing the recommended findings of fact and

 

 3  conclusions of law of the hearings examiner and the record of the

 

 4  hearing, a disciplinary subcommittee may request the hearings

 

 5  examiner to take additional testimony or evidence on a specific

 

 6  issue or may revise the recommended findings of fact and

 

 7  conclusions of law as determined necessary by the disciplinary

 

 8  subcommittee, or both. A disciplinary subcommittee shall not

 

 9  conduct its own investigation or take its own additional

 

10  testimony or evidence under this subsection.

 

11        (4) If a disciplinary subcommittee finds that a

 

12  preponderance of the evidence supports the recommended findings

 

13  of fact and conclusions of law of the hearings examiner

 

14  indicating that grounds exist for disciplinary action, the

 

15  disciplinary subcommittee shall impose an appropriate sanction

 

16  under any combination of this article, or article 7, or both.

 

17  article 8. If the disciplinary subcommittee finds that a

 

18  preponderance of the evidence does not support the findings of

 

19  fact and conclusions of law of the hearings examiner indicating

 

20  that grounds exist for disciplinary action, the disciplinary

 

21  subcommittee shall dismiss the complaint. A disciplinary

 

22  subcommittee shall report final action taken by it in writing to

 

23  the appropriate board or task force.

 

24        (5) The compliance conference, the hearing before the

 

25  hearings examiner, and final disciplinary subcommittee action

 

26  shall be completed within 1 year after the department initiates

 

27  an investigation under section 16231(2) or (3). The department


 

 1  shall note in its annual report any exceptions to the 1-year

 

 2  requirement.

 

 3        (6) A final decision of a disciplinary subcommittee rendered

 

 4  after the effective date of the amendatory act that added this

 

 5  section but before January 1, 1995 may be appealed only in the

 

 6  manner provided in sections 103 to 106 of the administrative

 

 7  procedures act of 1969, being sections 24.303 to 24.306 of the

 

 8  Michigan Compiled Laws. 1969 PA 306, MCL 24.301 to 24.306. A

 

 9  final decision of a disciplinary subcommittee rendered on or

 

10  after January 1, 1995 may be appealed only to the court of

 

11  appeals. An appeal filed under this subsection is by right.

 

12        Sec. 16241. (1) After administrative disciplinary action is

 

13  final, the department of commerce shall publish a list of the

 

14  names and addresses of disciplined individuals. The department of

 

15  commerce shall indicate on the list that a final administrative

 

16  disciplinary action is subject to judicial review. The department

 

17  of commerce shall report disciplinary action to the department of

 

18  public health, the commissioner director of the department of

 

19  insurance and financial services, the state and federal agencies

 

20  responsible for fiscal administration of federal health care

 

21  programs, and the appropriate professional association.

 

22        (2) Once each calendar year, the department of commerce

 

23  shall transmit to the library of Michigan sufficient copies of a

 

24  compilation of the lists required under subsection (1) for the

 

25  immediately preceding 3 calendar years. The library of Michigan

 

26  shall distribute the compilation to each depository library in

 

27  the this state. The department of commerce also shall also


 

 1  transmit the compilation to each county clerk in the this state

 

 2  once each calendar year.

 

 3        (3) The department of public community health shall report

 

 4  the disciplinary actions to appropriate licensed health

 

 5  facilities and agencies. The commissioner director of the

 

 6  department of insurance and financial services shall report the

 

 7  disciplinary actions received from the department of commerce to

 

 8  insurance carriers providing professional liability insurance.

 

 9        (4) In case of a summary suspension of a license under

 

10  section 16233(5), the department of commerce shall report the

 

11  name and address of the individual whose license has been

 

12  suspended to the department of public community health, the

 

13  commissioner director of the department of insurance and

 

14  financial services, the state and federal agencies responsible

 

15  for fiscal administration of federal health care programs, and

 

16  the appropriate professional association.

 

17        (5) A licensee or registrant whose license or registration

 

18  is revoked or suspended under this article shall give notice of

 

19  the revocation or suspension to each patient who contacts the

 

20  licensee or registrant for professional services during the term

 

21  of the revocation or suspension. The notice required under this

 

22  subsection may be given orally and shall be given at the time of

 

23  contact.

 

24        (6) A licensee or registrant whose license or registration

 

25  is revoked or is suspended for more than 60 days under this

 

26  article shall notify in writing each patient or client to whom

 

27  the licensee or registrant rendered professional services in the


 

 1  licensee's or registrant's private practice during the 120 days

 

 2  immediately preceding the date of the final order imposing the

 

 3  revocation or suspension and to each individual who is already

 

 4  scheduled for professional services during the first 120 days

 

 5  after the date of the final order imposing the revocation or

 

 6  suspension. The notice shall be on a form provided by the

 

 7  licensee's or registrant's board or task force and shall state,

 

 8  at a minimum, the name, address, and license or registration

 

 9  number of the licensee or registrant, the fact that his or her

 

10  license or registration has been revoked or suspended, the

 

11  effective date of the revocation or suspension, and the term of

 

12  the revocation or suspension. Each board or task force shall

 

13  develop a notice form that meets at least the minimum

 

14  requirements of this subsection. The licensee or registrant shall

 

15  send the notice to each patient or client to whom the licensee or

 

16  registrant rendered professional services in the licensee's or

 

17  registrant's private practice during the 120 days immediately

 

18  preceding the date of the final order imposing the revocation or

 

19  suspension within 30 days after the date of the final order

 

20  imposing the revocation or suspension and shall simultaneously

 

21  transmit a copy of the notice to the department. The licensee or

 

22  registrant orally shall notify each individual who contacts the

 

23  licensee or registrant for professional services during the first

 

24  120 days after the date of the final order imposing the

 

25  revocation or suspension. The licensee or registrant shall also

 

26  provide a copy of the notice within 10 days after the date of the

 

27  final order imposing the revocation or suspension to his or her


 

 1  employer, if any, and to each hospital, if any, in which the

 

 2  licensee or registrant is admitted to practice.

 

 3        (7) A licensee or registrant who is reprimanded, fined,

 

 4  placed on probation, or ordered to pay restitution under this

 

 5  article or an applicant whose application for licensure or

 

 6  registration is denied under this article shall notify his or her

 

 7  employer, if any, and each hospital, if any, in which he or she

 

 8  is admitted to practice, in the same manner as provided for

 

 9  notice of revocation or suspension to an employer or hospital

 

10  under subsection (6), within 10 days after the date of the final

 

11  order imposing the sanction.

 

12        (8) The department of commerce shall annually shall report

 

13  to the legislature and to each board and task force on

 

14  disciplinary actions taken under this article, and article 7, and

 

15  article 8. The report shall contain, at a minimum, all of the

 

16  following information:

 

17        (a) Investigations conducted, complaints issued, and

 

18  settlements reached by the department, of commerce, separated out

 

19  by type of complaint and health profession.

 

20        (b) Investigations and complaints closed or dismissed.

 

21        (c) Actions taken by each disciplinary subcommittee,

 

22  separated out by type of complaint, health profession, and final

 

23  order issued.

 

24        (d) Recommendations by boards and task forces.

 

25        (e) The number of extensions and delays granted by the

 

26  department that were in excess of the time limits required under

 

27  this article for each phase of the disciplinary process, and the


 

 1  types of cases for which the extensions and delays were granted.

 

 2        (9) Within 2 years after the effective date of the

 

 3  amendatory act that added this subsection, the department of

 

 4  commerce shall submit a public report to the legislature on the

 

 5  effectiveness of the amendatory act that added this subsection.

 

 6  The report shall include a review and evaluation of the

 

 7  disciplinary process and the reporting requirements of this

 

 8  article and article 17 and recommended administrative or

 

 9  statutory changes, if any.

 

10        Sec. 16245. (1) Except as otherwise provided in this

 

11  section, an individual whose license is limited, suspended, or

 

12  revoked under this part may apply to his or her board or task

 

13  force for a reinstatement of a revoked or suspended license or

 

14  reclassification of a limited license pursuant to section 16247

 

15  or 16249.

 

16        (2) Except as otherwise provided in this section, an

 

17  individual whose registration is suspended or revoked under this

 

18  part may apply to his or her board for a reinstatement of a

 

19  suspended or revoked registration pursuant to section 16248.

 

20        (3) A board or task force shall reinstate a license or

 

21  registration suspended for grounds stated in section 16221(j)

 

22  upon payment of the installment.

 

23        (4) Except as otherwise provided in this subsection, in case

 

24  of a revoked license or registration, an applicant shall not

 

25  apply for reinstatement before the expiration of 3 years after

 

26  the effective date of the revocation. In the case of a license or

 

27  registration that was revoked for a violation of section


 

 1  16221(b)(vii) or (xiii), a violation of section 16221(c)(iv)

 

 2  consisting of a felony conviction, any other felony conviction

 

 3  involving a controlled substance, or a violation of section

 

 4  16221(q), an applicant shall not apply for reinstatement before

 

 5  the expiration of 5 years after the effective date of the

 

 6  revocation. In the case of a license or registration that was

 

 7  permanently revoked for a violation of section 16221(b)(xiii), the

 

 8  former licensee or registrant is ineligible for reinstatement.

 

 9  The department shall return an application for reinstatement

 

10  received before the expiration of the applicable time period

 

11  under this subsection or if the applicant is ineligible for

 

12  reinstatement under this subsection.

 

13        (5) The department shall provide an opportunity for a

 

14  hearing before final rejection of an application for

 

15  reinstatement unless the application is returned because the

 

16  applicant is ineligible for reinstatement under subsection (4).

 

17        (6) Based upon the recommendation of the disciplinary

 

18  subcommittee for each health profession, the department shall

 

19  adopt guidelines to establish specific criteria to be met by an

 

20  applicant for reinstatement under this article, or article 7, or

 

21  article 8. The criteria may include corrective measures or

 

22  remedial education as a condition of reinstatement. If a board or

 

23  task force, in reinstating a license or registration, deviates

 

24  from the guidelines adopted under this subsection, the board or

 

25  task force shall state the reason for the deviation on the

 

26  record.

 

27        (7) An individual who seeks reinstatement or


 

 1  reclassification of a license or registration pursuant to this

 

 2  section shall pay the application processing fee as a

 

 3  reinstatement or reclassification fee. If approved for

 

 4  reinstatement or reclassification, the individual shall pay the

 

 5  per year license or registration fee for the applicable license

 

 6  or registration period.

 

 7        (8) An individual who seeks reinstatement of a revoked or

 

 8  suspended license or reclassification of a limited license

 

 9  pursuant to under this section shall have a criminal history

 

10  check conducted in accordance with section 16174 and submit a

 

11  copy of the results of the criminal history check to the board

 

12  with his or her application for reinstatement or

 

13  reclassification.

 

14        Sec. 16315. (1) The health professions regulatory fund is

 

15  established in the state treasury. Except as otherwise provided

 

16  in this section, the state treasurer shall credit the fees

 

17  collected under sections 16319 to 16349 to the health professions

 

18  regulatory fund. The money in the health professions regulatory

 

19  fund shall be expended only as provided in subsection (5).

 

20        (2) The state treasurer shall direct the investment of the

 

21  health professions regulatory fund. Interest and earnings from

 

22  health professions regulatory fund investment shall be credited

 

23  to the health professions regulatory fund.

 

24        (3) The unencumbered balance in the health professions

 

25  regulatory fund at the close of the fiscal year shall remain in

 

26  the health professions regulatory fund and shall not revert to

 

27  the general fund.


 

 1        (4) The health professions regulatory fund may receive gifts

 

 2  and devises and other money as provided by law.

 

 3        (5) The department of community health shall use the health

 

 4  professions regulatory fund to carry out its powers and duties

 

 5  under this article, and article 7, and article 8, including, but

 

 6  not limited to, reimbursing the department of attorney general

 

 7  for the reasonable cost of services provided to the department of

 

 8  community health under this article, and article 7, and article

 

 9  8. For the fiscal year ending September 30, 2007 only, subject to

 

10  appropriations by the legislature and approval by the governor,

 

11  the department of community health may also use the health

 

12  professions regulatory fund to support health information

 

13  technology initiatives.

 

14        (6) The nurse professional fund is established in the state

 

15  treasury. Of the money that is attributable to per-year license

 

16  fees collected under section 16327, the state treasurer shall

 

17  credit $8.00 of each individual annual license fee collected to

 

18  the nurse professional fund. The money in the nurse professional

 

19  fund shall be expended only as provided in subsection (9).

 

20        (7) The state treasurer shall direct the investment of the

 

21  nurse professional fund, and shall credit interest and earnings

 

22  from the investment to the nurse professional fund. The nurse

 

23  professional fund may receive gifts and devises and other money

 

24  as provided by law.

 

25        (8) The unencumbered balance in the nurse professional fund

 

26  at the close of the fiscal year shall remain in the nurse

 

27  professional fund and shall not revert to the general fund.


 

 1        (9) The department of community health shall use the nurse

 

 2  professional fund each fiscal year only as follows:

 

 3        (a) To promote safe patient care in all nursing practice

 

 4  environments.

 

 5        (b) To advance the safe practice of the nursing profession.

 

 6        (c) To assure a continuous supply of high-quality direct

 

 7  care nurses, nursing faculty, and nursing education programs.

 

 8        (d) To operate a nursing scholarship program.

 

 9        (10) The pain management education and controlled substances

 

10  electronic monitoring and antidiversion fund is established in

 

11  the state treasury.

 

12        (11) The state treasurer shall direct the investment of the

 

13  pain management education and controlled substances electronic

 

14  monitoring and antidiversion fund. Interest and earnings from

 

15  investment of the pain management education and controlled

 

16  substances electronic monitoring and antidiversion fund shall be

 

17  credited to the pain management education and controlled

 

18  substances electronic monitoring and antidiversion fund.

 

19        (12) The unencumbered balance in the pain management

 

20  education and controlled substances electronic monitoring and

 

21  antidiversion fund at the close of the fiscal year shall remain

 

22  in the pain management education and controlled substances

 

23  electronic monitoring and antidiversion fund and shall not revert

 

24  to the general fund. The pain management education and controlled

 

25  substances electronic monitoring and antidiversion fund may

 

26  receive gifts and devises and other money as provided by law.

 

27  Twenty dollars of the license fee received by the department of


Senate Bill No. 660 (H-1) as amended December 12, 2013

 

 1  community health under section 16319 shall be deposited with the

 

 2  state treasurer to the credit of the pain management education

 

 3  and controlled substances electronic monitoring and antidiversion

 

 4  fund. The department shall use the pain management education and

 

 5  controlled substances electronic monitoring and antidiversion

 

 6  fund only in connection with programs relating to pain management

 

 7  education for health professionals, preventing the diversion of

 

 8  controlled substances, and development and maintenance of the

 

 9  electronic monitoring system for controlled substances data

 

10  required by section 7333a.

 

11        Sec. 17754. (1) Except as otherwise provided under article

 

12  7, article 8, and the federal act, a prescription may be

 

13  transmitted electronically as long as if the prescription is

 

14  transmitted in compliance with the health insurance portability

 

15  and accountability act of 1996, Public Law 104-191, or

 

16  regulations promulgated under that act, 45 CFR parts 160 and 164,

 

17  by a prescriber or his or her agent and the data are not altered

 

18  or modified in the transmission process. The electronically

 

19  transmitted prescription shall include all of the following

 

20  information:

 

21        (a) The name, address, and telephone number of the

 

22  prescriber.

 

23        (b) [The Except as otherwise authorized under section 17744a, the]

    full name of the patient for whom the prescription

 

24  is issued.

 

25        (c) An electronic signature or other identifier that

 

26  specifically identifies and authenticates the prescriber or his

 

27  or her agent.


 

 1        (d) The time and date of the transmission.

 

 2        (e) The identity of the pharmacy intended to receive the

 

 3  transmission.

 

 4        (f) Any other information required by the federal act or

 

 5  state law.

 

 6        (2) The electronic equipment or system utilized in the

 

 7  transmission and communication of prescriptions shall provide

 

 8  adequate confidentiality safeguards and be maintained to protect

 

 9  patient confidentiality as required under any applicable federal

 

10  and state law and to ensure against unauthorized access. The

 

11  electronic transmission of a prescription shall be communicated

 

12  in a retrievable, recognizable form acceptable to the intended

 

13  recipient. The electronic form utilized in the transmission of a

 

14  prescription shall not include "dispense as written" or "d.a.w."

 

15  as the default setting.

 

16        (3) Prior to Before dispensing a prescription that is

 

17  electronically transmitted, the pharmacist shall exercise

 

18  professional judgment regarding the accuracy, validity, and

 

19  authenticity of the transmitted prescription.

 

20        (4) An electronically transmitted prescription that meets

 

21  the requirements of this section is the original prescription.

 

22        Sec. 17768. (1) In a manner consistent with part 161, the

 

23  disciplinary subcommittee may fine, reprimand, or place on

 

24  probation, a person licensed under this part, or deny, limit,

 

25  suspend, or revoke a person's license or order restitution or

 

26  community service for a violation of this part or rules

 

27  promulgated under this part.


 

 1        (2) In addition to the grounds set forth in subsection (1),

 

 2  and in a manner consistent with part 161, the board may fine,

 

 3  reprimand, or place on probation a person licensed under this

 

 4  part, or deny, limit, suspend, or revoke a license issued under

 

 5  this part or order restitution or community service if the board

 

 6  finds that any of the following categories apply to an applicant

 

 7  or a partner, officer, or member of the board of directors of a

 

 8  pharmacy, manufacturer, or wholesale distributor licensed under

 

 9  this part or a stockholder of a pharmacy, manufacturer, or

 

10  wholesale distributor which is a privately held corporation

 

11  licensed under this part:

 

12        (a) The applicant or other person described in this

 

13  subsection lacks good moral character.

 

14        (b) Subject to subsection (3), the applicant or other person

 

15  described in this subsection has been convicted of a misdemeanor

 

16  or a felony under a state or federal law relating to a controlled

 

17  substance or the practice of pharmacy.

 

18        (c) The applicant or other person described in this

 

19  subsection has furnished false or fraudulent material information

 

20  or has knowingly omitted material information in an application

 

21  filed under this part.

 

22        (d) The applicant or other person described in this

 

23  subsection has previously maintained a financial interest in a

 

24  pharmacy, manufacturer, or wholesale distributor which has been

 

25  denied a license or federal registration, has had its license or

 

26  federal registration limited, suspended, or revoked, or been

 

27  subject to any other criminal, civil, or administrative penalty.


 

 1        (e) The applicant or other person described in this

 

 2  subsection is not in compliance with article 7 or article 8 or

 

 3  the rules promulgated under article 7 or article 8.

 

 4        (3) Except for a conviction for a misdemeanor under section

 

 5  7404 (2)(d) 7404(2)(d) or a local ordinance that is substantially

 

 6  similar to section 7404 (2)(d), 7404(2)(d), the reference to a

 

 7  misdemeanor in subsection (2)(b) applies only to a conviction for

 

 8  a misdemeanor that is directly related to the manufacture,

 

 9  delivery, possession, possession with intent to manufacture or

 

10  deliver, use, distribution, prescription, or dispensing of a

 

11  controlled substance. Subsection (2)(b) does not apply to a

 

12  conviction for a misdemeanor based upon an unintentional error or

 

13  omission involving a clerical or record-keeping function.

 

14        Sec. 17775. (1) This section and section 17776 shall be

 

15  known and may be referred to as the "program for utilization of

 

16  unused prescription drugs".

 

17        (2) As used in this section and section 17776:

 

18        (a) "Board" means the Michigan board of pharmacy created

 

19  under section 17721.

 

20        (b) "Cancer drug" means that term as defined in section

 

21  17780.

 

22        (c) "Charitable clinic" means a charitable nonprofit

 

23  corporation or facility that meets all of the following

 

24  requirements:

 

25        (i) Is organized as a not-for-profit corporation pursuant to

 

26  the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to

 

27  450.3192.


 

 1        (ii) Holds a valid exemption from federal income taxation

 

 2  issued pursuant to under section 501(a) of the internal revenue

 

 3  code of 1986, 26 USC 501.

 

 4        (iii) Is listed as an exempt organization under section 501(c)

 

 5  of the internal revenue code of 1986, 26 USC 501.

 

 6        (iv) Is organized under or operated as a part of a health

 

 7  facility or agency licensed under article 17.

 

 8        (v) Provides on an outpatient basis for a period of less

 

 9  than 24 consecutive hours to persons not residing or confined at

 

10  the facility advice, counseling, diagnosis, treatment, surgery,

 

11  care, or services relating to the preservation or maintenance of

 

12  health.

 

13        (vi) Has a licensed pharmacy.

 

14        (d) "Eligible facility" means a medical institution as that

 

15  term is defined in R 338.486 of the Michigan administrative code.

 

16        (e) "Eligible participant" means an individual who meets all

 

17  of the following requirements:

 

18        (i) Is a resident of this state.

 

19        (ii) Is eligible to receive medicaid or medicare or has no

 

20  health insurance and otherwise lacks reasonable means to purchase

 

21  prescription drugs, as prescribed in rules promulgated under this

 

22  section.

 

23        (f) "Health professional" means any of the following

 

24  individuals licensed and authorized to prescribe and dispense

 

25  drugs or to provide medical, dental, or other health-related

 

26  diagnoses, care, or treatment within the scope of his or her

 

27  professional license:


 

 1        (i) A physician licensed to practice medicine or osteopathic

 

 2  medicine and surgery under part 170 or 175.

 

 3        (ii) A physician's assistant licensed under part 170, 175, or

 

 4  180.

 

 5        (iii) A dentist licensed under part 166.

 

 6        (iv) An optometrist licensed under part 174.

 

 7        (v) A pharmacist licensed under this part.

 

 8        (vi) A podiatrist licensed under part 180.

 

 9        (g) "Program" means the statewide unused prescription drug

 

10  repository and distribution program known as the program for

 

11  utilization of unused prescription drugs that is established

 

12  under this section.

 

13        (3) The board shall establish, implement, and administer a

 

14  statewide unused prescription drug repository and distribution

 

15  program consistent with public health and safety through which

 

16  unused or donated prescription drugs, other than controlled

 

17  substances, may be transferred from an eligible facility or

 

18  manufacturer to a pharmacy or a charitable clinic that elects to

 

19  participate in the program. The program is created to dispense

 

20  unused or donated prescription drugs, other than controlled

 

21  substances, to eligible participants and to provide for the

 

22  destruction and disposal of prescription drugs or other

 

23  medications that are ineligible for dispensing under the program.

 

24        (4) Participation in the program by an eligible facility,

 

25  manufacturer, pharmacy, or charitable clinic is voluntary.

 

26  Nothing in this section or section 17776 requires any eligible

 

27  facility, manufacturer, pharmacy, or charitable clinic to


 

 1  participate in the program.

 

 2        (5) Pharmacies, health professionals, and charitable clinics

 

 3  that participate in the program shall use the following criteria

 

 4  in accepting unused or donated prescription drugs from eligible

 

 5  facilities or manufacturers for use in the program:

 

 6        (a) Only prescription drugs in their original sealed,

 

 7  tamper-evident, and unopened unit dose packaging may be accepted

 

 8  for dispensing. However, prescription drugs packaged in single-

 

 9  unit dose packaging may be accepted for dispensing even if the

 

10  outside packaging is open as long as the single-unit dose

 

11  packaging is unopened.

 

12        (b) The following shall not be accepted for dispensing:

 

13        (i) Expired prescription drugs.

 

14        (ii) Controlled substances as defined in article 7 or article

 

15  8 or by federal law.

 

16        (iii) Drugs that have been held outside of a health

 

17  professional's control where sanitation and security cannot be

 

18  assured.

 

19        (iv) Drugs that can only be dispensed to a patient registered

 

20  with the drug's manufacturer under federal food and drug

 

21  administration requirements.

 

22        (c) A prescription drug shall not be accepted for dispensing

 

23  if the person accepting the drug has reason to believe that the

 

24  drug is adulterated.

 

25        (d) Subject to the limitations prescribed in this

 

26  subsection, unused or donated prescription drugs dispensed for

 

27  purposes of a medical assistance program or drug product donation


 

 1  program may be accepted for dispensing under the program.

 

 2        (e) Any additional criteria established in rules promulgated

 

 3  under this section.

 

 4        (6) A pharmacy or charitable clinic that meets the

 

 5  eligibility requirements for participation in the program and any

 

 6  rules promulgated under this section may do any of the following:

 

 7        (a) Dispense prescription drugs accepted under the program

 

 8  to eligible participants.

 

 9        (b) If established by rule under this section, charge

 

10  eligible participants who receive prescription drugs under the

 

11  program a handling fee for the service.

 

12        (7) A pharmacy or charitable clinic that participates in the

 

13  program and accepts prescription drugs for the program shall do

 

14  all of the following:

 

15        (a) Comply with all applicable federal laws and regulations

 

16  and state laws and rules related to the storage and distribution

 

17  of harmful drugs.

 

18        (b) Inspect all accepted prescription drugs before

 

19  dispensing the prescription drugs to determine that the drugs are

 

20  not adulterated.

 

21        (c) Dispense prescription drugs only pursuant to a

 

22  prescription issued by a health professional.

 

23        (8) A pharmacy, health professional, or charitable clinic

 

24  that accepts prescription drugs under the program shall not

 

25  resell the prescription drugs. Receipt of a fee from an eligible

 

26  participant, if established in rules promulgated under this

 

27  section, or reimbursement from a governmental agency to a


 

 1  charitable clinic does not constitute resale of prescription

 

 2  drugs under this subsection.

 

 3        (9) For purposes of the lawful donation, acceptance, or

 

 4  dispensing of prescription drugs under the program, the following

 

 5  persons that are in compliance with the program, this section and

 

 6  section 17776, and any rules promulgated under this section and

 

 7  in the absence of bad faith or gross negligence are not subject

 

 8  to criminal or civil liability for injury other than death, or

 

 9  loss to person or property, or professional disciplinary action:

 

10        (a) The board.

 

11        (b) The department.

 

12        (c) An eligible facility or manufacturer that donates

 

13  prescription drugs to the program.

 

14        (d) A manufacturer or its representative that directly

 

15  donates prescription drugs in professional samples to a

 

16  charitable clinic under the program.

 

17        (e) A pharmacy, charitable clinic, or health professional

 

18  that accepts or dispenses prescription drugs for the program.

 

19        (f) A pharmacy or charitable clinic that employs a health

 

20  professional who accepts prescription drugs for the program and

 

21  who may legally dispense prescription drugs under this part.

 

22        (10) A manufacturer is not, in the absence of bad faith,

 

23  subject to criminal prosecution or liability in tort or other

 

24  civil action for injury, death, or loss to person or property for

 

25  matters related to the donation, acceptance, or dispensing of a

 

26  prescription drug manufactured by the manufacturer that is

 

27  donated by any person under the program, including, but not


 

 1  limited to, liability for failure to transfer or communicate

 

 2  product or consumer information or the expiration date of the

 

 3  donated prescription drug.

 

 4        (11) Subject to subsection (12), the department, in

 

 5  consultation with the board, shall promulgate rules under the

 

 6  administrative procedures act of 1969 and establish procedures

 

 7  necessary to establish, implement, and administer the program.

 

 8  The board shall provide technical assistance to eligible

 

 9  facilities, manufacturers, pharmacies, and charitable clinics

 

10  that participate in the program.

 

11        (12) The department, in consultation with the board, shall

 

12  promulgate emergency rules under the administrative procedures

 

13  act of 1969 on or before the expiration of 6 months after the

 

14  effective date of this section September 28, 2013 to establish,

 

15  implement, and administer the program. The department, in

 

16  consultation with the board, shall promulgate permanent rules

 

17  pursuant to under the administrative procedures act of 1969 as

 

18  soon as practical after emergency rules have been promulgated

 

19  under this subsection. The department and the board shall include

 

20  all of the following in rules promulgated under this section:

 

21        (a) Eligibility criteria for pharmacies and charitable

 

22  clinics authorized to accept and dispense prescription drugs for

 

23  the program.

 

24        (b) Eligibility criteria for eligible participants.

 

25        (c) Establishment of a A list of prescription drugs that are

 

26  not eligible for acceptance and dispensing under the program.

 

27        (d) Standards and procedures for transfer, transportation,


 

 1  acceptance, safe storage, security, and dispensing of

 

 2  prescription drugs.

 

 3        (e) A process for seeking input from the department of human

 

 4  services and the department of community health in establishing

 

 5  provisions that affect eligible facilities.

 

 6        (f) A process for seeking input from the department of human

 

 7  services and the department of community health in establishing

 

 8  provisions that affect mental health and substance abuse clients.

 

 9        (g) Standards and procedures for inspecting accepted

 

10  prescription drugs to ensure that the prescription drugs meet the

 

11  requirements of the program and to ensure that, in the

 

12  professional judgment of the pharmacist, the prescription drugs

 

13  meet all federal and state standards for product integrity.

 

14        (h) Procedures for the destruction and environmentally sound

 

15  disposal of prescription drugs or other medications that are

 

16  accepted and that are ineligible for dispensing under the

 

17  program.

 

18        (i) Procedures for verifying whether the charitable clinic,

 

19  pharmacy, pharmacist, or other health professionals participating

 

20  in the program are licensed and in good standing with the

 

21  applicable licensing board.

 

22        (j) Establishment of standards Standards for acceptance of

 

23  unused or donated prescription drugs from eligible facilities.

 

24        (k) Establishment of standards Standards for the acceptance

 

25  by a pharmacy, health professional, or charitable clinic that

 

26  participates in the program from any person of a prescription

 

27  drug or any other medication that is ineligible for dispensing


 

 1  under the program for destruction and disposal.

 

 2        (l) Any other standards and procedures the department, in

 

 3  consultation with the board, considers appropriate or necessary

 

 4  to establish, implement, and administer the program.

 

 5        (13) Pursuant to the rules promulgated and standards and

 

 6  procedures established for the program under this section, a

 

 7  resident of an eligible facility or the representative or

 

 8  guardian of a resident of an eligible facility may donate unused

 

 9  prescription drugs for dispensing to eligible participants under

 

10  the program.

 

11        (14) Pursuant to rules promulgated and standards and

 

12  procedures established for the program under this section, a

 

13  person may deliver to a pharmacy, health professional, or

 

14  charitable clinic that participates in the program a prescription

 

15  drug or any other medication that is ineligible for dispensing

 

16  under the program for destruction and disposal.

 

17        (15) This section and section 17776 do not impair or

 

18  supersede the provisions regarding the cancer drug repository

 

19  program established in section 17780. If any provision of this

 

20  section or section 17776 conflicts with a provision of section

 

21  17780 with regard to a cancer drug, section 17780 controls.

 

22        Sec. 20176a. (1) A health facility or agency shall not

 

23  discharge or discipline, threaten to discharge or discipline, or

 

24  otherwise discriminate against an employee regarding the

 

25  employee's compensation, terms, conditions, location, or

 

26  privileges of employment because the employee or an individual

 

27  acting on behalf of the employee does either or both of the


 

 1  following:

 

 2        (a) In good faith reports or intends to report, verbally or

 

 3  in writing, the malpractice of a health professional or a

 

 4  violation of this article, article 7, article 8, or article 15 or

 

 5  a rule promulgated under this article, article 7, article 8, or

 

 6  article 15.

 

 7        (b) Acts as an expert witness in a civil action involving

 

 8  medical malpractice or in an administrative action.

 

 9        (2) In addition to the sanctions set forth in section 20165,

 

10  a health facility or agency that violates subsection (1) is

 

11  subject to an administrative fine of not more than $10,000.00 for

 

12  each violation.

 

13        Enacting section 1. Sections 7335 and 7336 of the public

 

14  health code, 1978 PA 368, MCL 333.7335 and 333.7336, are

 

15  repealed.