SB-0660, As Passed Senate, November 13, 2013

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 660

 

 

 

 

 

 

 

 

 

 

 

 

      A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

by amending sections 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 333.7212, 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 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. 7212. (1) The following controlled substances are

 

 2  included in schedule 1:

 

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

 

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

 

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

 

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

 

 7  specific chemical designation:

 

 

8

Acetylmethadol

Difenoxin

Noracymethadol

9

Allylprodine

Dimenoxadol

Norlevorphanol

10

Alpha-acetylmethadol

Dimepheptanol

Normethadone

11

Alphameprodine

Dimethylthiambutene

Norpipanone

12

Alphamethadol

Dioxaphetyl butyrate

Phenadoxone

13

Benzethidine

Dipipanone

Phenampromide

14

Betacetylmethadol

Ethylmethylthiambutene

Phenomorphan

15

Betameprodine

Etonitazene

Phenoperidine

16

Betamethadol

Etoxeridine

Piritramide

17

Betaprodine

Furethidine

Proheptazine


1

Clonitazene

Hydroxypethidine

Properidine

2

Dextromoramide

Ketobemidone

Propiram

3

Diampromide

Levomoramide

Racemoramide

4

Diethylthiambutene

Levophenacylmorphan

Trimeperidine

5

 

Morpheridine

 

 

 

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

 

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

 

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

 

 9  possible within the specific chemical designation:

 

 

10

Acetorphine

Drotebanol

Morphine-N-Oxide

11

Acetyldihydrocodeine

Etorphine

Myrophine

12

Benzylmorphine

Heroin

Nicocodeine

13

Codeine methylbromide

Hydromorphinol

Nicomorphine

14

Codeine-N-Oxide

Methyldesorphine

Normorphine

15

Cyprenorphine

Methyldihydromorphine

Pholcodine

16

Desomorphine

Morphine methylbromide

Thebacon

17

Dihydromorphine

Morphine methylsulfonate

 

 

 

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

 

19  contains any quantity of the following hallucinogenic substances,

 

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

 

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

 

22  of isomers is possible within the specific chemical designation:

 

 

23

2-Methylamino-1-phenylpropan-1-one

24

      Some trade and other names:

25

      Methcathinone

26

      Cat


1

      Ephedrone

2

3, 4-methylenedioxy amphetamine

3

      5-methoxy-3, 4-methylenedioxy

4

      amphetamine

5

3, 4, 5-trimethoxy amphetamine

6

      Bufotenine

7

      Some trade and other names:

8

      3-(B-dimethylaminoethyl)-5 hydrozyindole

9

      3-(2-dimethylaminoethyl)-5 indolol

10

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

11

      Mappine

12

2, 5-Dimethoxyamphetamine

13

      Some trade or other names:

14

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

15

4-Bromo-2, 5-Dimethoxyamphetamine

16

      Some trade or other names:

17

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

18

      2,5-DMA

19

Diethyltryptamine

20

      Some trade and other names:

21

      N,N-Diethyltryptamine; DET

22

Dimethyltryptamine

23

      Some trade or other names:

24

      DMT

25

4-methyl-2, 5-dimethoxyamphetamine

26

      Some trade and other names:

27

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

28

      DOM, STP

29

4-methoxyamphetamine

30

      Some trade or other names:

31

      4-methoxy-a-methylphenethylamine; paramethoxy  amphetamine;


1

      PMA

2

Ibogaine

3

      Some trade and other names:

4

      7-Ethyl-6,6a,7,8,9,10,12,13

5

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

6

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

7

      tabernanthe iboga

8

Lysergic acid diethylamide

9

Marihuana, including pharmaceutical-grade cannabis

10

Mecloqualone

11

Mescaline

12

Peyote

13

N-ethyl-3 piperidyl benzilate

14

N-methyl-3 piperidyl benzilate

15

Psilocybin

16

Psilocyn

17

Thiophene analog of phencyclidine

18

      Some trade or other names:

19

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

20

      2-thienyl analog of phencyclidine; TPCP

 

 

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

 

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

 

23  substances, derivatives, and their isomers with similar chemical

 

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

 

25  following, are included in schedule 1:

 

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

 

27  isomers.

 

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

 

29  isomers.


 

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

 

 2  optical isomers.

 

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

 

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

 

 5  positions, are included.

 

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

 

 7  isomer of gamma-hydroxybutyrate.

 

 

8

      Some trade and other names:

9

      Sodium oxybate

10

      4-hydroxybutanoic acid monosodium salt

 

 

11        (g) 3,4-methylenedioxymethamphetamine.

 

 

12

      Some trade and other names:

13

      Ecstasy

14

      MDMA

 

 

15        (h) N-Benzylpiperazine

 

 

16

      Some trade and other names:

17

      BZP

18

      Benzylpiperazine

19

      1-(phenylmethyl)-piperazine

 

 

20        (i) 3-Chlorophenylpiperazine

 

 

21

      Some trade and other names:

22

      MCPP

 

 


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

 

 

2

      Some trade and other names:

3

      TFMPP

 

 

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

 

 

5

      Some trade and other names:

6

      2C-B-BZP

 

 

 7        (l) All of the following:

 

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

 

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

 

 

10

      Some trade and other names:

11

      HU-210

 

 

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

 

13  yl)phenol and its side chain homologues.

 

 

14

      Some trade and other names:

15

      CP47,497

 

 

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

 

 

17

      Some trade and other names:

18

      JWH-018

 

 

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

 

 

20

      Some trade and other names:


1

      JWH-073

 

 

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

 

 3  methanone.

 

 

4

      Some trade and other names:

5

      JWH-015

 

 

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

 

 7  naphthalenyl-methanone.

 

 

8

      Some trade and other names:

9

      JWH-200

 

 

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

 

11  ethanone.

 

 

12

      Some trade and other names:

13

      JWH-250

 

 

14        (m) Mephedrone (4-methylmethcathinone).

 

 

15

      Some trade and other names:

16

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

17

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

 

 

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

 

 

19

      Some trade and other names:

20

      MPBP

 

 


 1        (o) Methylenedioxypyrovalerone

 

 

2

      Some trade and other names:

3

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

4

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

5

lightning

 

 

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

 

 

7

      Some trade and other names:

8

      MDAI

9

      Woof-woof

 

 

10        (q) Naphyrone (Naphthylpyrovalerone)

 

 

11

      Some trade and other names:

12

      NRG-1

13

      Rave

 

 

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

 

15  pentanone)

 

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

 

17  section 7218, all parts of the plant presently classified

 

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

 

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

 

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

 

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

 

 

22

      Some trade and other names:

23

      Khat


1

      Qat

 

 

 2        (t) Cathinone.

 

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

 

 4  all parts of the plant presently classified botanically as salvia

 

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

 

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

 

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

 

 8  or its leaves, seeds, or extracts.

 

 9        (v) Salvinorin A.

 

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

 

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

 

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

 

13  with this act and as authorized by federal authority.

 

14        (3) (2) For purposes of subsection (1), "isomer" includes

 

15  the optical, position, and geometric isomers.

 

16        Sec. 7214. The following controlled substances are included

 

17  in schedule 2:

 

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

 

19  drugs listed in other schedules, whether produced directly or

 

20  indirectly by extraction from substances of vegetable origin, or

 

21  independently by means of chemical synthesis, or by combination

 

22  of extraction and chemical synthesis:

 

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

 

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

 

25  and excluding naltrexone and its salts, but including the

 

26  following:

 


 

1

          Raw opium                    Etorphine hydrochloride

2

          Opium extracts               Hydrocodone

3

          Opium Fluid-extracts         Hydromorphone

4

          Powdered opium               Metopon

5

          Granulated opium             Morphine

6

          Tincture of opium            Oxycodone

7

          Codeine                      Oxymorphone

8

          Ethylmorphine                Thebaine

 

 

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

 

10  which is chemically equivalent to or identical with a substance

 

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

 

12  substances do not include the isoquinoline alkaloids of opium.

 

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

 

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

 

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

 

16  opium poppy.

 

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

 

18  preparation thereof which is chemically equivalent to or

 

19  identical with any of these substances, except that the

 

20  substances do not include decocainized coca leaves or extraction

 

21  of coca leaves which extractions do not contain cocaine or

 

22  ecgonine. The substances include cocaine, its salts,

 

23  stereoisomers, and salts of stereoisomers when the existence of

 

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

 

25  within the specific chemical designation.

 

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

 

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


 

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

 

 2  the specific chemical designation:

 

 

3

          Alphaprodine                 Fentanyl

4

          Anileridine                  Isomethadone

5

          Bezitramide                  Levomethorphan

6

          Dihydrocodeine               Levorphanol

7

          Diphenoxylate                Metazocine

8

 

9

                           Methadone

10

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

11

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

12

1-diphenylpropane-carboxylic acid

13

 

14

                           Pethidine

15

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

16

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

17

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

18

carboxylic acid

19

 

20

          Phenazocine                  Racemethorphan

21

          Piminodine                   Racemorphan

 

 

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

 

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

 

24  the following substances having potential for abuse associated

 

25  with a stimulant effect on the nervous system:

 

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

 

27  optical isomers.

 

28        (ii) Any substance which contains any quantity of


 

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

 

 2  stereoisomers.

 

 3        (iii) Phenmetrazine and its salts.

 

 4        (iv) Methylphenidate and its salts.

 

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

 

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

 

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

 

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

 

 9  which contains any quantity of the following substances having a

 

10  potential for abuse associated with the depressant effect on the

 

11  central nervous system: methaqualone, amobarbital, pentobarbital,

 

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

 

13  containing amobarbital, secobarbital, pentobarbital, or any salt

 

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

 

15  more other controlled substances.

 

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

 

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

 

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

 

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

 

20  this act.

 

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

 

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

 

23  16309, and 16313 and article 8.

 

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

 

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

 

26  who proposes to engage in the manufacture, distribution,

 

27  prescribing, or dispensing of a controlled substance in this


 

 1  state shall obtain a license issued by the administrator in

 

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

 

 3  controlled substances license by the administrator under this

 

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

 

 5  substances license concurrently with the renewal of the license

 

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

 

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

 

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

 

 9  conduct research with controlled substances may possess,

 

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

 

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

 

12  in conformity with the other provisions of this article.

 

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

 

14  distribute, prescribe, or dispense pharmaceutical-grade cannabis

 

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

 

16  requirements of article 8.

 

17        (4) (3) The following persons need not be licensed and may

 

18  lawfully possess controlled substances or prescription forms

 

19  under this article:

 

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

 

21  distributor, prescriber, or dispenser of a controlled substance

 

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

 

23  business or employment.

 

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

 

25  employee thereof, whose possession of a controlled substance or

 

26  prescription form is in the usual course of business or

 

27  employment.


 

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

 

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

 

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

 

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

 

 5  requirement for licensure of certain manufacturers, distributors,

 

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

 

 7  is consistent with the public health and safety.

 

 8        (6) (5) A separate license is required at each principal

 

 9  place of business or professional practice where the applicant

 

10  manufactures, distributes, prescribes, or dispenses controlled

 

11  substances.

 

12        (7) (6) As a requisite for licensure, the administrator may

 

13  inspect the establishment of a licensee or applicant for

 

14  licensure in accordance with the administrator's rule.

 

15        (8) (7) A person licensed under this article to distribute

 

16  controlled substances shall report to the administrator on a

 

17  quarterly basis all schedule 2 controlled substances and those

 

18  controlled substances designated by the administrator pursuant to

 

19  this subsection which that are sold to licensed practitioners and

 

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

 

21  include the name of each licensed practitioner and retail

 

22  pharmacy to whom the controlled substance was distributed. A

 

23  report under this subsection may be transmitted electronically,

 

24  if the transmission is ultimately reduced to writing. The

 

25  administrator shall designate by rule the controlled substances

 

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

 

27                            ARTICLE 8


 

 1                  PHARMACEUTICAL-GRADE CANNABIS

 

 2                             PART 81

 

 3                        GENERAL PROVISIONS

 

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

 

 5  phrases defined in sections 8103 to 8107 have the meanings

 

 6  ascribed to them in those sections.

 

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

 

 8  principles of construction applicable to all articles in this

 

 9  act.

 

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

 

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

 

12  and includes each individual identified in the application as an

 

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

 

14  of the applicant.

 

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

 

16  acid.

 

17        (3) "Director" means the director of the department.

 

18        (4) "Eligible patient" means an individual who meets the

 

19  requirements of part 84 and has been issued an enhanced

 

20  pharmaceutical-grade cannabis registration card.

 

21        (5) "Enhanced pharmaceutical-grade cannabis registration

 

22  card" or "registration card" means the registration card issued

 

23  to an eligible patient under part 84.

 

24        (6) "Good moral character" means that term as defined in

 

25  section 1 of 1974 PA 381, MCL 338.41.

 

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

 

27  section 7106 and includes pharmaceutical-grade cannabis.


 

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

 

 2  internal possession, delivery, transfer, or transportation of

 

 3  pharmaceutical-grade cannabis or paraphernalia relating to the

 

 4  administration of pharmaceutical-grade cannabis to treat or

 

 5  alleviate an eligible patient's debilitating medical condition.

 

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

 

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

 

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

 

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

 

10  that is free of chemical residues such as fungicides and

 

11  insecticides and is tested by validated methods to determine its

 

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

 

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

 

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

 

15  including heavy metals; and that meets any other necessary

 

16  requirements to be considered in compliance with good

 

17  manufacturing practices as prescribed in rules promulgated by the

 

18  department under this article.

 

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

 

20  pharmaceutical-grade cannabis fund created in section 8113.

 

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

 

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

 

23  facility at or through which pharmaceutical-grade cannabis is

 

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

 

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

 

26  medical marihuana act. Pharmaceutical-grade cannabis licensed

 

27  facility does not include a qualifying patient or primary


 

 1  caregiver who possesses or cultivates marihuana in the manner

 

 2  prescribed in the Michigan medical marihuana act or an eligible

 

 3  patient who possesses pharmaceutical-grade cannabis in the manner

 

 4  prescribed in this article.

 

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

 

 6  has been issued a registry identification card as a qualifying

 

 7  patient under the Michigan medical marihuana act.

 

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

 

 9  tetrahydrocannabinol acid.

 

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

 

11  prescribe, or dispense pharmaceutical-grade cannabis without

 

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

 

13  or dispense a controlled substance under article 7.

 

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

 

15  distribute, prescribe, or dispense pharmaceutical-grade cannabis

 

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

 

17  prescribe, or dispense pharmaceutical-grade cannabis under that

 

18  license is subject to the additional requirements of this

 

19  article.

 

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

 

21  permitted under the Michigan medical marihuana act.

 

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

 

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

 

24  registration, inspection, testing, or other activity or service

 

25  provided by the department under this article. The fee authorized

 

26  under this subsection is in addition to any fee authorized under

 

27  article 7. All fees permitted under this section shall be


 

 1  delivered to the state treasurer on a monthly basis for deposit

 

 2  in the pharmaceutical-grade cannabis fund.

 

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

 

 4  department shall develop and publish a comprehensive schedule of

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

12  under this article.

 

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

 

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

 

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

 

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

 

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

 

18  state treasurer shall credit to the fund interest and earnings

 

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

 

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

 

21  general fund.

 

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

 

23  auditing purposes and the department shall expend money from the

 

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

 

25  associated with implementing, administering, and enforcing this

 

26  article.

 

27        Sec. 8115. The department shall promulgate rules necessary


 

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

 

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

 

 3  subjects:

 

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

 

 5  activities necessary for the compliance with or enforcement of or

 

 6  activities that constitute a violation of this article,

 

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

 

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

 

 9  under this article.

 

10        (b) Instructions for local health departments and law

 

11  enforcement officers.

 

12        (c) All forms necessary or convenient for the

 

13  implementation, administration, and enforcement of this article.

 

14        (d) Activities that constitute or result in

 

15  misrepresentation or unfair, deceptive practices.

 

16        (e) Procedures and forms for issuing enhanced

 

17  pharmaceutical-grade cannabis registration cards.

 

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

 

19  disposal, and sale of pharmaceutical-grade cannabis and

 

20  specifying legitimate sources for obtaining seed to cultivate

 

21  pharmaceutical-grade cannabis.

 

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

 

23  inventory, which shall include the number of plants under

 

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

 

25  destroyed plants, and all sales.

 

26        (h) Compliance with federal regulatory requirements.

 

27        (i) Health and sanitary requirements for licensed


 

 1  facilities.

 

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

 

 3  record security requirements for pharmaceutical-grade cannabis

 

 4  licensed facilities.

 

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

 

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

 

 7  to inspection by designated state and federal authorities.

 

 8        (l) Physical security requirements for pharmaceutical-grade

 

 9  cannabis that at a minimum include lighting and alarms.

 

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

 

11  income tax payments for licensed facilities.

 

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

 

13  access to licensing information to ensure sales and income tax

 

14  payments for licensed facilities.

 

15        (o) Activities that constitute lawful and unlawful financial

 

16  arrangements between licensed facilities.

 

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

 

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

 

19  inventory at any time.

 

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

 

21  stringent, and comprehensive implementation, administration, and

 

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

 

23  welfare of the residents of this state.

 

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

 

25  grade cannabis licensed facility registry. The registry shall be

 

26  an online database that contains information regarding the

 

27  pharmaceutical-grade cannabis licensed facilities licensed under


 

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

 

 2  the public.

 

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

 

 4  department shall submit to the legislature an annual report for

 

 5  the previous calendar year that contains all of the following

 

 6  information:

 

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

 

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

 

 9  department under this article.

 

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

 

11  imposed by the department under this article.

 

12        (d) Any other information the department considers

 

13  appropriate under this article.

 

14                             PART 81A

 

15  PRESCRIBING AND DISPENSING PHARMACEUTICAL-GRADE CANNABIS

 

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

 

17  patient is likely to receive therapeutic or palliative benefit

 

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

 

19  alleviate the patient's debilitating medical condition or

 

20  symptoms of the patient's debilitating medical condition may

 

21  recommend the issuance of an enhanced pharmaceutical-grade

 

22  cannabis registration card to that patient as an eligible

 

23  patient.

 

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

 

25  pharmaceutical-grade cannabis registration card to an eligible

 

26  patient who is recommended by a physician to obtain a

 

27  registration card and who properly applies for that card. Before


 

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

 

 2  department shall determine whether the individual has previously

 

 3  been convicted of illegally manufacturing, creating,

 

 4  distributing, possessing, or using a controlled substance or

 

 5  conspiring or attempting to manufacture, create, distribute,

 

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

 

 7  elsewhere. If the individual has previously been convicted of

 

 8  illegally manufacturing, creating, distributing, possessing, or

 

 9  using a controlled substance or conspiring or attempting to

 

10  manufacture, create, distribute, possess, or use a controlled

 

11  substance in this state or elsewhere, the department shall not

 

12  issue a registration card to that individual.

 

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

 

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

 

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

 

16  to surrender that card before issuing the individual an enhanced

 

17  pharmaceutical-grade cannabis registration card under this

 

18  section.

 

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

 

20  following information for each pharmaceutical-grade cannabis

 

21  registration card is entered into the law enforcement information

 

22  network:

 

23        (a) The card registration number.

 

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

 

25  is issued.

 

26        (c) The date the card was issued.

 

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


 

 1  issuance of the card.

 

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

 

 3  enter any information into the law enforcement information

 

 4  network regarding the diagnosis supporting issuance of the card

 

 5  or any medical information regarding the individual to whom the

 

 6  card has been issued.

 

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

 

 8  cannabis shall contain all of the following information:

 

 9        (a) The date the prescription is written.

 

10        (b) The date the prescription is filled.

 

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

 

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

 

13  prescription for pharmaceutical-grade cannabis shall not allow

 

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

 

15  than 2 ounces of pharmaceutical-grade cannabis within a 30-day

 

16  period.

 

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

 

18  administration number of the dispensing pharmacy and the initials

 

19  of the pharmacist who fills the prescription.

 

20        (e) The name, address, and age of the eligible patient for

 

21  whom the pharmaceutical-grade cannabis is prescribed.

 

22  Pharmaceutical-grade cannabis shall not be prescribed to an

 

23  individual less than 18 years of age.

 

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

 

25  the prescriber.

 

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

 

27  system established under section 7333a for monitoring


 

 1  pharmaceutical-grade cannabis dispensed under this section as a

 

 2  schedule 2 controlled substance.

 

 3        (3) The director shall permit access to information

 

 4  submitted to the department under this article only to the

 

 5  following individuals and as provided in this article:

 

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

 

 7  director of the department.

 

 8        (b) Employees of the department of state police authorized

 

 9  by the administrator as defined in article 7 for the purpose of

 

10  cooperating and assisting a governmental agency that is

 

11  responsible for the enforcement of laws relating to controlled

 

12  substances or a prescribing physician concerning an individual

 

13  suspected of attempting to obtain a controlled substance by

 

14  fraud, deceit, or misrepresentation.

 

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

 

16  subsection (8).

 

17        (4) Information submitted to the department under this

 

18  section is confidential, but may be released to persons

 

19  authorized by the director to conduct research studies or to

 

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

 

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

 

22  for statistical purposes only.

 

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

 

24  department under this section shall be designed in all respects

 

25  so as to preclude improper access to information.

 

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

 

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


 

 1  for bona fide drug-related criminal investigatory or evidentiary

 

 2  purposes or for investigatory or evidentiary purposes in

 

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

 

 4  boards created in article 15.

 

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

 

 6  submitted to the department under to this section shall be

 

 7  removed from the system for retrieval of the information

 

 8  described in this section and shall be destroyed and rendered

 

 9  irretrievable not later than the end of the calendar year

 

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

 

11  department. However, an individual eligible patient identity that

 

12  is necessary for use in a specific ongoing investigation

 

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

 

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

 

15  retention of the identity ends.

 

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

 

17  the administration of this section.

 

18                             PART 82

 

19                        FACILITY LICENSING

 

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

 

21  residents of this state, the department shall license facilities

 

22  under this article to cultivate, manufacture, and test

 

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

 

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

 

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

 

26  cannabis is available to eligible patients who are residents of

 

27  this state.


 

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

 

 2  an applicant to operate a pharmaceutical-grade cannabis licensed

 

 3  facility unless the department is satisfied that all of the

 

 4  following requirements are met:

 

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

 

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

 

 7  compliance with this article.

 

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

 

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

 

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

 

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

 

12  repaying government-insured student loans; or paying child

 

13  support.

 

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

 

15  individual in the course of operating a licensed facility without

 

16  first conducting a criminal history check in the manner

 

17  prescribed in rules promulgated under this article.

 

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

 

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

 

20  reason to deny the license.

 

21        (g) The criminal history check conducted under subsection

 

22  (2) did not reveal any felony convictions.

 

23        (h) Any other criteria established in rules promulgated

 

24  under this article.

 

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

 

26  renewal of a pharmaceutical-grade cannabis licensed facility

 

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


 

 1  fingerprints and file personal history information concerning his

 

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

 

 3  department shall submit the fingerprints to the department of

 

 4  state police for the purpose of conducting fingerprint-based

 

 5  criminal history checks. The department of state police shall

 

 6  forward the fingerprints to the federal bureau of investigation

 

 7  for the purpose of conducting fingerprint-based criminal history

 

 8  checks. The department may acquire a name-based criminal history

 

 9  check for an applicant who has twice submitted to a fingerprint-

 

10  based criminal history check under this part and whose

 

11  fingerprints are unclassifiable. An applicant who has previously

 

12  submitted fingerprints under this part may request that the

 

13  fingerprints on file be used. The department shall use the

 

14  information resulting from the fingerprint-based criminal history

 

15  check to investigate and determine whether an applicant is

 

16  qualified to hold a license under this article. The department

 

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

 

18  submit.

 

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

 

20  inspections for approval or renewal of pharmaceutical-grade

 

21  cannabis licensed facility licenses to a local health department

 

22  that has the technical and other capabilities to protect the

 

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

 

24  shall not take place unless the department has first consulted

 

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

 

26  department for the purpose of advising on that delegation.

 

27  Membership on the ad hoc committee shall include representatives


 

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

 

 2  association that represents the pharmaceutical-grade cannabis

 

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

 

 4  delegated under this section, the state shall reimburse each

 

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

 

 6  reimbursement for the cost of inspection, on vouchers certified

 

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

 

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

 

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

 

10  operating a pharmaceutical-grade cannabis licensed facility

 

11  seeking relicensure shall apply for license renewal and shall pay

 

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

 

13  applicant for license renewal with the requirements of this

 

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

 

15  shall issue a renewal license.

 

16                             PART 83

 

17    PHARMACEUTICAL-GRADE CANNABIS LICENSED FACILITY OPERATIONS

 

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

 

19  shall establish legal control of its physical location. The

 

20  physical location shall meet all applicable state and local

 

21  zoning laws.

 

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

 

23  facility shall notify the department in writing of the name,

 

24  address, and date of birth of an officer, director, partner,

 

25  member, manager, or employee before the individual is associated

 

26  with or begins working at the licensed facility. The licensed

 

27  facility shall obtain the individual's identification and have a


 

 1  criminal history check conducted to determine if that individual

 

 2  is qualified to work at or be associated with the licensed

 

 3  facility under this article.

 

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

 

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

 

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

 

 7  or otherwise be associated with the licensed facility.

 

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

 

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

 

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

 

11  purpose except as provided in this article.

 

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

 

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

 

14  plants or dried pharmaceutical-grade cannabis allowed in its

 

15  inventory as prescribed in rules promulgated under this article.

 

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

 

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

 

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

 

19  cannabis. A licensed facility shall keep records of its

 

20  activities under this subsection in order to verify its

 

21  compliance to the department.

 

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

 

23  standards:

 

 

24

                           Microbiological

25

Microbiological Analysis             FPL Specifications

26

Total coliforms                      <3 MPN/g


1

Std. plate count aerobic             <100 CFU/g

2

Std. plate count anaerobic           <100 CFU/g

3

Escherichia coli                     Absent

4

Salmonella                           Absent

5

Staphylococcus aureus                <100 CFU/g

6

Yeast and molds                      <100 CFU/g

7

 

8

                              Mycotoxins

9

Test                                 Specification

10

Aflatoxin B1                         <20 µg/kg of substance

11

Aflatoxin B2                         <20 µg/kg of substance

12

Aflatoxin O1                         <20 µg/kg of substance

13

Aflatoxin O2                         <20 µg/kg of substance

14

Ochratoxin A                         <20 µg/kg of substance

15

 

16

                             Heavy Metals

17

Metal                                NHP Acceptable Limits

18

                                     µg/kg bw/day

19

Arsenic                              <0.14

20

Cadmium                              <0.09

21

Lead                                 <0.29

22

Mercury                              <0.29

 

 

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

 

24  grade cannabis in the manner determined by the department before

 

25  delivering that pharmaceutical-grade cannabis to another person.

 

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

 

27  may be a profit or nonprofit entity.

 

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

 

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

 


 1  the following:

 

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

 

 3  premises.

 

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

 

 5  premises.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13  violation of this act or rules promulgated under this act

 

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

 

15  administrative or court proceeding.

 

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

 

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

 

18  a product liability action against a pharmaceutical-grade

 

19  cannabis licensed facility, pharmaceutical-grade cannabis is not

 

20  defective or unreasonably dangerous, and the pharmaceutical-grade

 

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

 

22  tested and determined to meet the standards for pharmaceutical-

 

23  grade cannabis under this article.

 

24                             PART 84

 

25      SALE AND DISTRIBUTION OF PHARMACEUTICAL-GRADE CANNABIS

 

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

 

27  facility shall not sell or otherwise distribute pharmaceutical-

 


 1  grade cannabis except as provided in this section.

 

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

 

 3  not sell or otherwise distribute pharmaceutical-grade cannabis

 

 4  directly to the public.

 

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

 

 6  sell pharmaceutical-grade cannabis only to a licensed pharmacist

 

 7  or retail pharmacy to be dispensed only to eligible patients and

 

 8  to other pharmaceutical-grade cannabis licensed facilities for

 

 9  purposes provided for under this article. Pharmaceutical-grade

 

10  cannabis dispensed by a licensed pharmacist or retail pharmacy

 

11  shall have affixed upon each package and container in which the

 

12  cannabis is contained a label showing in legible English the name

 

13  and address of the manufacturer, the date the prescription is

 

14  filled, the dosage, including the total percentage of THC and

 

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

 

16  and address of the dispensing pharmacist.

 

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

 

18  sell or otherwise distribute pharmaceutical-grade cannabis to

 

19  pharmacies for sale or distribution only to eligible patients as

 

20  provided in this article.

 

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

 

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

 

23  pharmaceutical-grade cannabis sold to licensed pharmacists,

 

24  retail pharmacies, and other pharmaceutical-grade cannabis

 

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

 

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

 

27  and pharmaceutical-grade cannabis licensed facility to which the

 


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

 

 2  section may be transmitted electronically, if the transmission is

 

 3  ultimately reduced to writing.

 

 4                             PART 85

 

 5                           ENFORCEMENT

 

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

 

 7  the applicable provisions of article 7 and shall conduct annual

 

 8  inspections of pharmaceutical-grade cannabis licensed facilities

 

 9  to ensure compliance with the requirements of this article and

 

10  article 7.

 

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

 

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

 

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

 

14  of a pharmaceutical-grade cannabis licensed facility without

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 


 1  administrative law judge at which the pharmaceutical-grade

 

 2  cannabis licensed facility licensee is afforded an opportunity to

 

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

 

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

 

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

 

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

 

 7  conditions, or provisions of the license issued by the

 

 8  department. The department may administer oaths and issue

 

 9  subpoenas to require the presence of persons and the production

 

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

 

11  any hearing that the department is authorized to conduct.

 

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

 

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

 

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

 

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

 

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

 

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

 

18  department may summarily suspend a license without notice pending

 

19  any prosecution, investigation, or public hearing. Nothing in

 

20  this section shall prevent the summary suspension of a license

 

21  for a temporary period of not more than 15 days.

 

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

 

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

 

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

 

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

 

26  produced in the hearing and any information directly or

 

27  indirectly derived from the testimony or other information shall

 


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

 

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

 

 3  committed while testifying. Continued refusal to testify or

 

 4  provide other information is grounds for the suspension or

 

 5  revocation of a license or registration card issued under this

 

 6  article.

 

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

 

 8  pharmaceutical-grade cannabis licensed facility who knowingly

 

 9  violates this article or who establishes or operates a

 

10  pharmaceutical-grade cannabis licensed facility in violation of

 

11  this article is guilty of a crime as follows:

 

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

 

13  person is guilty of a misdemeanor punishable by imprisonment for

 

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

 

15  both.

 

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

 

17  1 prior conviction for violating this article, the person is

 

18  guilty of a misdemeanor punishable by imprisonment for not more

 

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

 

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

 

21  violating this article, or intentionally violates this article,

 

22  the person is guilty of a misdemeanor punishable by imprisonment

 

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

 

24  or both.

 

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

 

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

 

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

 


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

 

 2  pharmaceutical-grade cannabis licensed facility that has been

 

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

 

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

 

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

 

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

 

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

 

 8  action by a business or occupational or professional licensing

 

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

 

10  pharmaceutical-grade cannabis under this article for use by

 

11  eligible patients in the manner prescribed in this article.

 

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

 

13  local governmental unit shall not enact or enforce an ordinance

 

14  regarding pharmaceutical-grade cannabis licensed facilities. A

 

15  local governmental unit may limit the number of pharmaceutical-

 

16  grade cannabis licensed facilities that may operate in the local

 

17  governmental unit and may enact reasonable zoning regulations

 

18  applicable to pharmaceutical-grade cannabis licensed facilities

 

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

 

20  cultivation, distribution, and sale of pharmaceutical-grade

 

21  cannabis.

 

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

 

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

 

24  health professional may be impaired, the individual shall

 

25  transmit the information to the committee either orally or in

 

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

 

27  request the program consultant described in section 16168 to

 


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

 

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

 

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

 

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

 

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

 

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

 

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

 

 8  sections 16211 and 16231.

 

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

 

10  information to the committee or the department regarding the

 

11  suspected impairment of a health professional is confidential.

 

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

 

13  in the health professional recovery program is confidential and

 

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

 

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

 

16  1976, being sections 15.231 to 15.246 of the Michigan Compiled

 

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

 

18  professional fails to satisfactorily participate in and complete

 

19  a treatment plan prescribed under the health professional

 

20  recovery program or violates section 16170(3).

 

21        (3) If a health professional successfully participates in

 

22  and completes a treatment plan prescribed under the health

 

23  professional recovery program, as determined by the committee,

 

24  the department shall destroy all records pertaining to the

 

25  impairment of the health professional, including records

 

26  pertaining to the health professional's participation in the

 

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

 


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

 

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

 

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

 

 4  7, or article 8.

 

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

 

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

 

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

 

 8        (b) Be of good moral character.

 

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

 

10  profession or in a health profession subfield or health

 

11  profession specialty field of the health profession, or training

 

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

 

13  board necessary to promote safe and competent practice and

 

14  informed consumer choice.

 

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

 

16  determined in accordance with minimum standards established for

 

17  that purpose by the department.

 

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

 

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

 

20  applicant for licensure, registration, specialty certification,

 

21  or a health profession specialty subfield license under this

 

22  article shall meet all of the following requirements:

 

23        (a) Establish that disciplinary proceedings before a similar

 

24  licensure, registration, or specialty licensure or specialty

 

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

 

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

 

27  are not pending against the applicant.

 


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

 

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

 

 3  licensure or specialty certification board of this or any other

 

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

 

 5  or of another country based upon grounds that are substantially

 

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

 

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

 

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

 

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

 

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

 

11  application for licensure that the board may grant under section

 

12  17011(4) or 17511(2).

 

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

 

14  consent to the release of information regarding a disciplinary

 

15  investigation involving the applicant conducted by a similar

 

16  licensure, registration, or specialty licensure or specialty

 

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

 

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

 

19  country.

 

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

 

21  licensure or registration shall submit his or her fingerprints to

 

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

 

23  conducted and request that the department of state police forward

 

24  his or her fingerprints to the federal bureau of investigation

 

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

 

26  police shall conduct a criminal history check and request the

 

27  federal bureau of investigation to make a determination of the

 


 1  existence of any national criminal history pertaining to the

 

 2  applicant. The department of state police shall provide the

 

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

 

 4  the criminal history check contains any criminal history record

 

 5  information. The department of state police shall forward the

 

 6  results of the federal bureau of investigation determination to

 

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

 

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

 

 9  the type of crime disclosed on the federal bureau of

 

10  investigation determination without disclosing the details of the

 

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

 

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

 

13  criminal history record information obtained under this

 

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

 

15  applicant's qualifications for licensure or registration for

 

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

 

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

 

18  directly involved in evaluating the applicant's qualifications

 

19  for licensure or registration. Information obtained under this

 

20  subsection is confidential, is not subject to disclosure under

 

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

 

22  15.246, and shall not be disclosed to any person except for

 

23  purposes of this section or for law enforcement purposes.

 

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

 

25  certification, or a health profession specialty field license to

 

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

 

27  applies may do 1 of the following:

 


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

 

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

 

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

 

 4  licensure or registration board or task force determines under

 

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

 

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

 

 7  not grant a license or registration or specialty certification or

 

 8  health profession specialty field license to the applicant.

 

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

 

10  association or federation of state professional licensing boards

 

11  certification of compliance with the requirements described in

 

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

 

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

 

14  not required to secure the certification of compliance with

 

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

 

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

 

17  certification, or health profession specialty field license, a

 

18  board or task force or the department determines that sanctions

 

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

 

20  licensure or registration or specialty licensure or specialty

 

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

 

22  disciplinary subcommittee may impose appropriate sanctions upon

 

23  the licensee or registrant. The licensee or registrant may

 

24  request a show cause hearing before a hearing examiner to

 

25  demonstrate why the sanctions should not be imposed.

 

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

 

27  certification, or a health profession specialty field license who

 


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

 

 2  profession or specialty by another state or country shall

 

 3  disclose that fact on the application form.

 

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

 

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

 

 6  days after the change occurs.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

20  or registrant to accept service.

 

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

 

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

 

23  appoint 1 or more disciplinary subcommittees for that board or

 

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

 

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

 

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

 

27  not serve as a member of a disciplinary subcommittee.

 


 1        (2) A final decision of the disciplinary subcommittee

 

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

 

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

 

 4  on the disciplinary subcommittee.

 

 5        (3) A final decision of the disciplinary subcommittee

 

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

 

 7  8 or a final decision of the disciplinary subcommittee other than

 

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

 

 9  vote of the members appointed and serving on the disciplinary

 

10  subcommittee with an affirmative vote by at least 1 public

 

11  member.

 

12        (4) The chairperson of each disciplinary subcommittee shall

 

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

 

14  board or task force.

 

15        Sec. 16221. The department may investigate activities

 

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

 

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

 

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

 

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

 

20  appropriate disciplinary subcommittee. The disciplinary

 

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

 

22  or more of the following grounds exist:

 

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

 

24  failure to exercise due care, including negligent delegation to

 

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

 

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

 

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

 


 1  practice the health profession.

 

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

 

 3  the following:

 

 4        (i) Incompetence.

 

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

 

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

 

 7  1974 PA 258, MCL 330.1100d.

 

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

 

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

 

10  and competent manner.

 

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

 

12  competent jurisdiction.

 

13        (v) Conviction of a misdemeanor punishable by imprisonment

 

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

 

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

 

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

 

17  evidence of the conviction.

 

18        (vi) Lack of good moral character.

 

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

 

20  520g of the Michigan penal code, 1931 PA 328, MCL 750.520e and

 

21  750.520g. A certified copy of the court record is conclusive

 

22  evidence of the conviction.

 

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

 

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

 

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

 

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

 

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

 


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

 

 2  conclusive evidence of the conviction.

 

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

 

 4  registration, disciplinary, or certification board involving the

 

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

 

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

 

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

 

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

 

 9  conclusive evidence of the final action.

 

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

 

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

 

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

 

13  record is conclusive evidence of the conviction.

 

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

 

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

 

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

 

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

 

18  520c, 520d, or 520f of the Michigan penal code, 1931 PA 328, MCL

 

19  750.520b, 750.520c, 750.520d, and 750.520f. A certified copy of

 

20  the court record is conclusive evidence of the conviction.

 

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

 

22  following:

 

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

 

24  registration.

 

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

 

26  unauthorized person.

 

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

 


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

 

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

 

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

 

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

 

 5  other than lawful diagnostic or therapeutic purposes.

 

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

 

 7  the following:

 

 8        (i) False or misleading advertising.

 

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

 

10  kickbacks on medical or surgical services, appliances, or

 

11  medications purchased by or in behalf of patients.

 

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

 

13  third party reimbursement.

 

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

 

15  following:

 

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

 

17  obtaining or attempting to obtain third party reimbursement in

 

18  the course of professional practice.

 

19        (ii) Betrayal of a professional confidence.

 

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

 

21  device, treatment, procedure, or service.

 

22        (iv) Either of the following:

 

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

 

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

 

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

 

26  business in which the licensee has a financial interest.

 

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

 


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

 

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

 

 3  1395nn and the regulations promulgated under that section as they

 

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

 

 5  disciplinary subcommittee shall apply 42 USC 1395nn and the

 

 6  regulations promulgated under that section regardless of the

 

 7  source of payment for the designated health service referred and

 

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

 

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

 

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

 

11  taking notice of the revision, the department shall decide

 

12  whether or not the revision pertains to referral by physicians

 

13  for designated health services and continues to protect the

 

14  public from inappropriate referrals by physicians. If the

 

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

 

16  the department may promulgate rules to incorporate the revision

 

17  by reference. If the department does promulgate rules to

 

18  incorporate the revision by reference, the department shall not

 

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

 

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

 

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

 

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

 

23  sections 17001 and 17501.

 

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

 

25  1395nn or a regulation promulgated under that section, refusing

 

26  to accept a reasonable proportion of patients eligible for

 

27  Medicaid and refusing to accept payment from Medicaid or Medicare

 


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

 

 2  which the physician refers the individual and in which the

 

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

 

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

 

 5  is not subject to this subparagraph if a referred surgical

 

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

 

 7  a minimum of the appropriate Medicaid or Medicare outpatient fee

 

 8  schedule, including the combined technical and professional

 

 9  components.

 

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

 

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

 

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

 

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

 

14  referrals by licensees of uninsured and Medicaid patients to

 

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

 

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

 

17  which the licensee has a financial interest.

 

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

 

19  within 30 days after the change occurs.

 

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

 

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

 

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

 

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

 

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

 

25  compliance conference or an administrative hearing, or failure to

 

26  report under section 16222 or 16223.

 

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

 


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

 

 2  500.8302, within 60 days after notice by the appropriate board.

 

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

 

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

 

 5  licensure or registration under section 16174.

 

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

 

 7  17517.

 

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

 

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

 

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

 

11        (q) A violation of section 16274.

 

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

 

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

 

14  47, MCL 333.26261 to 333.26271.

 

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

 

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

 

17  knowledge that another licensee or registrant has committed a

 

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

 

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

 

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

 

21  department. Information obtained by the department under this

 

22  subsection is confidential and is subject to sections 16238 and

 

23  16244. Failure of a licensee or registrant to make a report under

 

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

 

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

 

26  registrant is subject to administrative action under sections

 

27  16221 and 16226. This subsection does not apply to a licensee or

 


 1  registrant who obtains the knowledge of a violation while

 

 2  providing professional services to the licensee or registrant to

 

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

 

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

 

 5  who is serving on a committee assigned a professional review

 

 6  function in a health facility or agency.

 

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

 

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

 

 9  the licensee or registrant making the report shall remain

 

10  confidential unless disciplinary proceedings under this part are

 

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

 

12  registrant making the report is required to testify in the

 

13  proceedings.

 

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

 

15  a criminal conviction or a disciplinary licensing or registration

 

16  action taken by another state against the licensee or registrant

 

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

 

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

 

19  that is stayed pending appeal.

 

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

 

21  the grounds for disciplinary subcommittee action listed in

 

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

 

23  of the following sanctions for each violation:

 

 

24

 Violations of Section 16221

            Sanctions

25

 Subdivision (a), (b)(ii),

Probation, limitation, denial,

26

 (b)(iv), (b)(vi), or

suspension, revocation,

27

 (b)(vii)

restitution, community service,


1

 

or fine.

2

 

 

3

 Subdivision (b)(viii)

Revocation or denial.

4

 

 

5

 Subdivision (b)(i),

Limitation, suspension,

6

 (b)(iii), (b)(v),

revocation, denial,

7

 (b)(ix), (b)(x),

probation, restitution,

8

 (b)(xi), or (b)(xii)

community service, or fine.

9

 

 

10

 Subdivision (b)(xiii)

Probation, limitation, denial,

11

 

suspension, revocation,

12

 

restitution, community service,

13

 

fine, or, subject to subsection

14

 

(5), permanent revocation.

15

 

 

16

 

 

17

 Subdivision (c)(i)

Denial, revocation, suspension,

18

 

probation, limitation, community

19

 

service, or fine.

20

 

 

21

 Subdivision (c)(ii)

Denial, suspension, revocation,

22

 

restitution, community service,

23

 

or fine.

24

 

 

25

 Subdivision (c)(iii)

Probation, denial, suspension,

26

 

revocation, restitution,

27

 

community service, or fine.

28

 

 

29

 Subdivision (c)(iv)

Fine, probation, denial,

30

 or (d)(iii)

suspension, revocation, community

31

 

service, or restitution.


1

 

 

2

 Subdivision (d)(i)

Reprimand, fine, probation,

3

 or (d)(ii)

community service, denial,

4

 

or restitution.

5

 

 

6

 Subdivision (e)(i)

Reprimand, fine, probation,

7

 

limitation, suspension, community

8

 

service, denial, or restitution.

9

 

 

10

 Subdivision (e)(ii)

Reprimand, probation,

11

 or (i)

suspension, restitution,

12

 

community service, denial, or

13

 

fine.

14

 

 

15

 Subdivision (e)(iii),

Reprimand, fine, probation,

16

 (e)(iv), or (e)(v)

suspension, revocation,

17

 

limitation, community service,

18

 

denial, or restitution.

19

 

 

20

 Subdivision (g)

Reprimand or fine.

21

 

 

22

 Subdivision (h) or (s)

Reprimand, probation, denial,

23

 

suspension, revocation,

24

 

limitation, restitution,

25

 

community service, or fine.

26

 

 

27

 Subdivision (j)

Suspension or fine.

28

 

 

29

 Subdivision (k), (p),

Reprimand or fine.

30

 or (r)

 

31

 

 


1

 Subdivision (l)

Reprimand, denial, or

2

 

limitation.

3

 

 

4

 Subdivision (m) or (o)

Denial, revocation, restitution,

5

 

probation, suspension,

6

 

limitation, reprimand, or fine.

7

 

 

8

 Subdivision (n)

Revocation or denial.

9

 

 

10

 Subdivision (q)

Revocation.

11

 

 

12

 Subdivision (t)

Revocation, fine, and

13

 

restitution.

 

 

14        (2) Determination of sanctions for violations under this

 

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

 

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

 

17  decision or order of a disciplinary subcommittee prejudices

 

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

 

19  listed in section 106 of the administrative procedures act of

 

20  1969, 1969 PA 306, MCL 24.306, and holds that the final decision

 

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

 

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

 

23  the case to the disciplinary subcommittee for further

 

24  consideration.

 

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

 

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

 

27  16221(a) or (b).

 

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


 

 1  registrant or an applicant for licensure or registration who has

 

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

 

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

 

 4  satisfactorily complete an educational program, a training

 

 5  program, or a treatment program, a mental, physical, or

 

 6  professional competence examination, or a combination of those

 

 7  programs and examinations.

 

 8        (5) A disciplinary subcommittee shall not impose the

 

 9  sanction of permanent revocation for a violation of section

 

10  16221(b)(xiii) unless the violation occurred while the licensee or

 

11  registrant was acting within the health profession for which he

 

12  or she was licensed or registered.

 

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

 

14  believes that 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 exists may make an allegation of that fact to the

 

17  department in writing.

 

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

 

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

 

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

 

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

 

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

 

23  department, with the authorization of the chair of the

 

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

 

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

 

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

 

27  for authorization, the department shall investigate.


 

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

 

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

 

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

 

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

 

 5  awards, or judgments against a licensee totaling more than

 

 6  $200,000.00 in a period of 5 consecutive years, whether or not a

 

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

 

 8  investigate.

 

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

 

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

 

11  conference pursuant to under section 92 of the administrative

 

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

 

13  the applicant, licensee, registrant, or individual, the

 

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

 

15  1 member of the department's staff, and any other individuals

 

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

 

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

 

18  subcommittee with jurisdiction over the matter may attend the

 

19  conference and provide such assistance as needed. At the

 

20  compliance conference, the department shall attempt to reach

 

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

 

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

 

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

 

24  dismissal to the appropriate disciplinary subcommittee for

 

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

 

26  request for dismissal is rejected by the disciplinary

 

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


 

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

 

 2  transcript of the compliance conference. All records and

 

 3  documents of a compliance conference held before a complaint is

 

 4  issued are subject to section 16238.

 

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

 

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

 

 7  following:

 

 8        (a) Issue a formal complaint.

 

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

 

10        (c) Issue a summary suspension.

 

11        (d) Issue a cease and desist order.

 

12        (e) Dismiss the complaint.

 

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

 

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

 

15  subsection.

 

16        (6) Unless the person submitting the allegation under

 

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

 

18  keep the identity of a person submitting the allegation

 

19  confidential until disciplinary proceedings under this part are

 

20  initiated against the subject of the allegation and the person

 

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

 

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

 

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

 

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

 

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

 

26  receipt to respond in writing to the complaint.

 

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


 

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

 

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

 

 3  admission of the allegations contained in the complaint. The

 

 4  department shall notify the appropriate disciplinary subcommittee

 

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

 

 6  of the complaint to that disciplinary subcommittee. The

 

 7  disciplinary subcommittee may then impose an appropriate sanction

 

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

 

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

 

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

 

11  agreement is reached but is rejected by a disciplinary

 

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

 

13  department shall hold a hearing before a hearings examiner

 

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

 

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

 

16  department shall not hold another compliance conference, but may

 

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

 

18  shall conduct the hearing within 60 days after the compliance

 

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

 

20  agreement is rejected by the disciplinary subcommittee, unless a

 

21  new agreement is reached and approved by the disciplinary

 

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

 

23  who is not a member of the disciplinary subcommittee with

 

24  jurisdiction over the matter may attend the hearing and provide

 

25  such assistance as needed.

 

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

 

27  grounds for disciplinary action under section 16221 or if the


 

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

 

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

 

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

 

 4  prepare recommended findings of fact and conclusions of law for

 

 5  transmittal to the appropriate disciplinary subcommittee. The

 

 6  hearings examiner shall not recommend or impose penalties.

 

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

 

 8  subject of the complaint or the department of attorney general

 

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

 

10  hearings examiner for good cause shown.

 

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

 

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

 

13  be represented at the hearing by an assistant attorney general

 

14  from the department of attorney general. The assistant attorney

 

15  general shall not be the same individual assigned by the

 

16  department of attorney general to provide legal counsel to the

 

17  board or the special assistant attorney general described in

 

18  section 16237.

 

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

 

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

 

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

 

22  hearings examiner as a default and an admission of the

 

23  allegations contained in the complaint. The hearings examiner

 

24  shall notify the appropriate disciplinary subcommittee of the

 

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

 

26  complaint and any other relevant records to the disciplinary

 

27  subcommittee. The disciplinary subcommittee may then impose an


 

 1  appropriate sanction under any combination of this article, or

 

 2  article 7, or both.article 8.

 

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

 

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

 

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

 

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

 

 7  restitution, or place a licensee on probation.

 

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

 

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

 

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

 

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

 

12  a registrant on probation.

 

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

 

14  after receipt of the recommended findings of fact and conclusions

 

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

 

16        (4) Only the department shall promulgate rules governing

 

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

 

18  preliminary proceedings.

 

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

 

20  necessary to administer and enforce this article. Investigations

 

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

 

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

 

23  paralegal unit to assist the department.

 

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

 

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

 

26  8 or a rule promulgated under this article, or article 7, or

 

27  article 8.


 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 8  16231 and 16231a, or the recommended findings of fact and

 

 9  conclusions of law to the appropriate disciplinary subcommittee

 

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

 

11  dissolved.

 

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

 

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

 

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

 

15  permanently, an individual from further violating the cease and

 

16  desist order.

 

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

 

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

 

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

 

20  safety, or welfare requires emergency action in accordance with

 

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

 

22  24.292. If a licensee or registrant is convicted of a felony; a

 

23  misdemeanor punishable by imprisonment for a maximum term of 2

 

24  years; or a misdemeanor involving the illegal delivery,

 

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

 

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

 

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


 

 1  administrative procedures act of 1969, MCL 24.292, shall

 

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

 

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

 

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

 

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

 

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

 

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

 

 8  in accordance with section 92 of the administrative procedures

 

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

 

10  license or the registrant's registration.

 

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

 

12  16232(3), a disciplinary subcommittee shall review the

 

13  recommended findings of fact and conclusions of law of the

 

14  hearings examiner.

 

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

 

16  independent special assistant attorney general who is under

 

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

 

18  member of the state classified civil service to advise the

 

19  disciplinary subcommittees on matters of law and provide other

 

20  legal assistance as necessary. A special assistant attorney

 

21  general assigned to the disciplinary subcommittees under this

 

22  subsection shall not be the same individual who represented the

 

23  department before a hearings examiner under section 16231a(4).

 

24        (3) In reviewing the recommended findings of fact and

 

25  conclusions of law of the hearings examiner and the record of the

 

26  hearing, a disciplinary subcommittee may request the hearings

 

27  examiner to take additional testimony or evidence on a specific


 

 1  issue or may revise the recommended findings of fact and

 

 2  conclusions of law as determined necessary by the disciplinary

 

 3  subcommittee, or both. A disciplinary subcommittee shall not

 

 4  conduct its own investigation or take its own additional

 

 5  testimony or evidence under this subsection.

 

 6        (4) If a disciplinary subcommittee finds that a

 

 7  preponderance of the evidence supports the recommended findings

 

 8  of fact and conclusions of law of the hearings examiner

 

 9  indicating that grounds exist for disciplinary action, the

 

10  disciplinary subcommittee shall impose an appropriate sanction

 

11  under any combination of this article, or article 7, or both.

 

12  article 8. If the disciplinary subcommittee finds that a

 

13  preponderance of the evidence does not support the findings of

 

14  fact and conclusions of law of the hearings examiner indicating

 

15  that grounds exist for disciplinary action, the disciplinary

 

16  subcommittee shall dismiss the complaint. A disciplinary

 

17  subcommittee shall report final action taken by it in writing to

 

18  the appropriate board or task force.

 

19        (5) The compliance conference, the hearing before the

 

20  hearings examiner, and final disciplinary subcommittee action

 

21  shall be completed within 1 year after the department initiates

 

22  an investigation under section 16231(2) or (3). The department

 

23  shall note in its annual report any exceptions to the 1-year

 

24  requirement.

 

25        (6) A final decision of a disciplinary subcommittee rendered

 

26  after the effective date of the amendatory act that added this

 

27  section but before January 1, 1995 may be appealed only in the


 

 1  manner provided in sections 103 to 106 of the administrative

 

 2  procedures act of 1969, being sections 24.303 to 24.306 of the

 

 3  Michigan Compiled Laws. 1969 PA 306, MCL 24.301 to 24.306. A

 

 4  final decision of a disciplinary subcommittee rendered on or

 

 5  after January 1, 1995 may be appealed only to the court of

 

 6  appeals. An appeal filed under this subsection is by right.

 

 7        Sec. 16241. (1) After administrative disciplinary action is

 

 8  final, the department of commerce shall publish a list of the

 

 9  names and addresses of disciplined individuals. The department of

 

10  commerce shall indicate on the list that a final administrative

 

11  disciplinary action is subject to judicial review. The department

 

12  of commerce shall report disciplinary action to the department of

 

13  public health, the commissioner director of the department of

 

14  insurance and financial services, the state and federal agencies

 

15  responsible for fiscal administration of federal health care

 

16  programs, and the appropriate professional association.

 

17        (2) Once each calendar year, the department of commerce

 

18  shall transmit to the library of Michigan sufficient copies of a

 

19  compilation of the lists required under subsection (1) for the

 

20  immediately preceding 3 calendar years. The library of Michigan

 

21  shall distribute the compilation to each depository library in

 

22  the this state. The department of commerce also shall also

 

23  transmit the compilation to each county clerk in the this state

 

24  once each calendar year.

 

25        (3) The department of public community health shall report

 

26  the disciplinary actions to appropriate licensed health

 

27  facilities and agencies. The commissioner director of the


 

 1  department of insurance and financial services shall report the

 

 2  disciplinary actions received from the department of commerce to

 

 3  insurance carriers providing professional liability insurance.

 

 4        (4) In case of a summary suspension of a license under

 

 5  section 16233(5), the department of commerce shall report the

 

 6  name and address of the individual whose license has been

 

 7  suspended to the department of public community health, the

 

 8  commissioner director of the department of insurance and

 

 9  financial services, the state and federal agencies responsible

 

10  for fiscal administration of federal health care programs, and

 

11  the appropriate professional association.

 

12        (5) A licensee or registrant whose license or registration

 

13  is revoked or suspended under this article shall give notice of

 

14  the revocation or suspension to each patient who contacts the

 

15  licensee or registrant for professional services during the term

 

16  of the revocation or suspension. The notice required under this

 

17  subsection may be given orally and shall be given at the time of

 

18  contact.

 

19        (6) A licensee or registrant whose license or registration

 

20  is revoked or is suspended for more than 60 days under this

 

21  article shall notify in writing each patient or client to whom

 

22  the licensee or registrant rendered professional services in the

 

23  licensee's or registrant's private practice during the 120 days

 

24  immediately preceding the date of the final order imposing the

 

25  revocation or suspension and to each individual who is already

 

26  scheduled for professional services during the first 120 days

 

27  after the date of the final order imposing the revocation or


 

 1  suspension. The notice shall be on a form provided by the

 

 2  licensee's or registrant's board or task force and shall state,

 

 3  at a minimum, the name, address, and license or registration

 

 4  number of the licensee or registrant, the fact that his or her

 

 5  license or registration has been revoked or suspended, the

 

 6  effective date of the revocation or suspension, and the term of

 

 7  the revocation or suspension. Each board or task force shall

 

 8  develop a notice form that meets at least the minimum

 

 9  requirements of this subsection. The licensee or registrant shall

 

10  send the notice to each patient or client to whom the licensee or

 

11  registrant rendered professional services in the licensee's or

 

12  registrant's private practice during the 120 days immediately

 

13  preceding the date of the final order imposing the revocation or

 

14  suspension within 30 days after the date of the final order

 

15  imposing the revocation or suspension and shall simultaneously

 

16  transmit a copy of the notice to the department. The licensee or

 

17  registrant orally shall notify each individual who contacts the

 

18  licensee or registrant for professional services during the first

 

19  120 days after the date of the final order imposing the

 

20  revocation or suspension. The licensee or registrant shall also

 

21  provide a copy of the notice within 10 days after the date of the

 

22  final order imposing the revocation or suspension to his or her

 

23  employer, if any, and to each hospital, if any, in which the

 

24  licensee or registrant is admitted to practice.

 

25        (7) A licensee or registrant who is reprimanded, fined,

 

26  placed on probation, or ordered to pay restitution under this

 

27  article or an applicant whose application for licensure or


 

 1  registration is denied under this article shall notify his or her

 

 2  employer, if any, and each hospital, if any, in which he or she

 

 3  is admitted to practice, in the same manner as provided for

 

 4  notice of revocation or suspension to an employer or hospital

 

 5  under subsection (6), within 10 days after the date of the final

 

 6  order imposing the sanction.

 

 7        (8) The department of commerce shall annually shall report

 

 8  to the legislature and to each board and task force on

 

 9  disciplinary actions taken under this article, and article 7, and

 

10  article 8. The report shall contain, at a minimum, all of the

 

11  following information:

 

12        (a) Investigations conducted, complaints issued, and

 

13  settlements reached by the department, of commerce, separated out

 

14  by type of complaint and health profession.

 

15        (b) Investigations and complaints closed or dismissed.

 

16        (c) Actions taken by each disciplinary subcommittee,

 

17  separated out by type of complaint, health profession, and final

 

18  order issued.

 

19        (d) Recommendations by boards and task forces.

 

20        (e) The number of extensions and delays granted by the

 

21  department that were in excess of the time limits required under

 

22  this article for each phase of the disciplinary process, and the

 

23  types of cases for which the extensions and delays were granted.

 

24        (9) Within 2 years after the effective date of the

 

25  amendatory act that added this subsection, the department of

 

26  commerce shall submit a public report to the legislature on the

 

27  effectiveness of the amendatory act that added this subsection.


 

 1  The report shall include a review and evaluation of the

 

 2  disciplinary process and the reporting requirements of this

 

 3  article and article 17 and recommended administrative or

 

 4  statutory changes, if any.

 

 5        Sec. 16245. (1) Except as otherwise provided in this

 

 6  section, an individual whose license is limited, suspended, or

 

 7  revoked under this part may apply to his or her board or task

 

 8  force for a reinstatement of a revoked or suspended license or

 

 9  reclassification of a limited license pursuant to section 16247

 

10  or 16249.

 

11        (2) Except as otherwise provided in this section, an

 

12  individual whose registration is suspended or revoked under this

 

13  part may apply to his or her board for a reinstatement of a

 

14  suspended or revoked registration pursuant to section 16248.

 

15        (3) A board or task force shall reinstate a license or

 

16  registration suspended for grounds stated in section 16221(j)

 

17  upon payment of the installment.

 

18        (4) Except as otherwise provided in this subsection, in case

 

19  of a revoked license or registration, an applicant shall not

 

20  apply for reinstatement before the expiration of 3 years after

 

21  the effective date of the revocation. In the case of a license or

 

22  registration that was revoked for a violation of section

 

23  16221(b)(vii) or (xiii), a violation of section 16221(c)(iv)

 

24  consisting of a felony conviction, any other felony conviction

 

25  involving a controlled substance, or a violation of section

 

26  16221(q), an applicant shall not apply for reinstatement before

 

27  the expiration of 5 years after the effective date of the


 

 1  revocation. In the case of a license or registration that was

 

 2  permanently revoked for a violation of section 16221(b)(xiii), the

 

 3  former licensee or registrant is ineligible for reinstatement.

 

 4  The department shall return an application for reinstatement

 

 5  received before the expiration of the applicable time period

 

 6  under this subsection or if the applicant is ineligible for

 

 7  reinstatement under this subsection.

 

 8        (5) The department shall provide an opportunity for a

 

 9  hearing before final rejection of an application for

 

10  reinstatement unless the application is returned because the

 

11  applicant is ineligible for reinstatement under subsection (4).

 

12        (6) Based upon the recommendation of the disciplinary

 

13  subcommittee for each health profession, the department shall

 

14  adopt guidelines to establish specific criteria to be met by an

 

15  applicant for reinstatement under this article, or article 7, or

 

16  article 8. The criteria may include corrective measures or

 

17  remedial education as a condition of reinstatement. If a board or

 

18  task force, in reinstating a license or registration, deviates

 

19  from the guidelines adopted under this subsection, the board or

 

20  task force shall state the reason for the deviation on the

 

21  record.

 

22        (7) An individual who seeks reinstatement or

 

23  reclassification of a license or registration pursuant to this

 

24  section shall pay the application processing fee as a

 

25  reinstatement or reclassification fee. If approved for

 

26  reinstatement or reclassification, the individual shall pay the

 

27  per year license or registration fee for the applicable license


 

 1  or registration period.

 

 2        (8) An individual who seeks reinstatement of a revoked or

 

 3  suspended license or reclassification of a limited license

 

 4  pursuant to under this section shall have a criminal history

 

 5  check conducted in accordance with section 16174 and submit a

 

 6  copy of the results of the criminal history check to the board

 

 7  with his or her application for reinstatement or

 

 8  reclassification.

 

 9        Sec. 16315. (1) The health professions regulatory fund is

 

10  established in the state treasury. Except as otherwise provided

 

11  in this section, the state treasurer shall credit the fees

 

12  collected under sections 16319 to 16349 to the health professions

 

13  regulatory fund. The money in the health professions regulatory

 

14  fund shall be expended only as provided in subsection (5).

 

15        (2) The state treasurer shall direct the investment of the

 

16  health professions regulatory fund. Interest and earnings from

 

17  health professions regulatory fund investment shall be credited

 

18  to the health professions regulatory fund.

 

19        (3) The unencumbered balance in the health professions

 

20  regulatory fund at the close of the fiscal year shall remain in

 

21  the health professions regulatory fund and shall not revert to

 

22  the general fund.

 

23        (4) The health professions regulatory fund may receive gifts

 

24  and devises and other money as provided by law.

 

25        (5) The department of community health shall use the health

 

26  professions regulatory fund to carry out its powers and duties

 

27  under this article, and article 7, and article 8, including, but


 

 1  not limited to, reimbursing the department of attorney general

 

 2  for the reasonable cost of services provided to the department of

 

 3  community health under this article, and article 7, and article

 

 4  8. For the fiscal year ending September 30, 2007 only, subject to

 

 5  appropriations by the legislature and approval by the governor,

 

 6  the department of community health may also use the health

 

 7  professions regulatory fund to support health information

 

 8  technology initiatives.

 

 9        (6) The nurse professional fund is established in the state

 

10  treasury. Of the money that is attributable to per-year license

 

11  fees collected under section 16327, the state treasurer shall

 

12  credit $8.00 of each individual annual license fee collected to

 

13  the nurse professional fund. The money in the nurse professional

 

14  fund shall be expended only as provided in subsection (9).

 

15        (7) The state treasurer shall direct the investment of the

 

16  nurse professional fund, and shall credit interest and earnings

 

17  from the investment to the nurse professional fund. The nurse

 

18  professional fund may receive gifts and devises and other money

 

19  as provided by law.

 

20        (8) The unencumbered balance in the nurse professional fund

 

21  at the close of the fiscal year shall remain in the nurse

 

22  professional fund and shall not revert to the general fund.

 

23        (9) The department of community health shall use the nurse

 

24  professional fund each fiscal year only as follows:

 

25        (a) To promote safe patient care in all nursing practice

 

26  environments.

 

27        (b) To advance the safe practice of the nursing profession.


 

 1        (c) To assure a continuous supply of high-quality direct

 

 2  care nurses, nursing faculty, and nursing education programs.

 

 3        (d) To operate a nursing scholarship program.

 

 4        (10) The pain management education and controlled substances

 

 5  electronic monitoring and antidiversion fund is established in

 

 6  the state treasury.

 

 7        (11) The state treasurer shall direct the investment of the

 

 8  pain management education and controlled substances electronic

 

 9  monitoring and antidiversion fund. Interest and earnings from

 

10  investment of the pain management education and controlled

 

11  substances electronic monitoring and antidiversion fund shall be

 

12  credited to the pain management education and controlled

 

13  substances electronic monitoring and antidiversion fund.

 

14        (12) The unencumbered balance in the pain management

 

15  education and controlled substances electronic monitoring and

 

16  antidiversion fund at the close of the fiscal year shall remain

 

17  in the pain management education and controlled substances

 

18  electronic monitoring and antidiversion fund and shall not revert

 

19  to the general fund. The pain management education and controlled

 

20  substances electronic monitoring and antidiversion fund may

 

21  receive gifts and devises and other money as provided by law.

 

22  Twenty dollars of the license fee received by the department of

 

23  community health under section 16319 shall be deposited with the

 

24  state treasurer to the credit of the pain management education

 

25  and controlled substances electronic monitoring and antidiversion

 

26  fund. The department shall use the pain management education and

 

27  controlled substances electronic monitoring and antidiversion


 

 1  fund only in connection with programs relating to pain management

 

 2  education for health professionals, preventing the diversion of

 

 3  controlled substances, and development and maintenance of the

 

 4  electronic monitoring system for controlled substances data

 

 5  required by section 7333a.

 

 6        Sec. 17754. (1) Except as otherwise provided under article

 

 7  7, article 8, and the federal act, a prescription may be

 

 8  transmitted electronically as long as if the prescription is

 

 9  transmitted in compliance with the health insurance portability

 

10  and accountability act of 1996, Public Law 104-191, or

 

11  regulations promulgated under that act, 45 CFR parts 160 and 164,

 

12  by a prescriber or his or her agent and the data are not altered

 

13  or modified in the transmission process. The electronically

 

14  transmitted prescription shall include all of the following

 

15  information:

 

16        (a) The name, address, and telephone number of the

 

17  prescriber.

 

18        (b) The full name of the patient for whom the prescription

 

19  is issued.

 

20        (c) An electronic signature or other identifier that

 

21  specifically identifies and authenticates the prescriber or his

 

22  or her agent.

 

23        (d) The time and date of the transmission.

 

24        (e) The identity of the pharmacy intended to receive the

 

25  transmission.

 

26        (f) Any other information required by the federal act or

 

27  state law.


 

 1        (2) The electronic equipment or system utilized in the

 

 2  transmission and communication of prescriptions shall provide

 

 3  adequate confidentiality safeguards and be maintained to protect

 

 4  patient confidentiality as required under any applicable federal

 

 5  and state law and to ensure against unauthorized access. The

 

 6  electronic transmission of a prescription shall be communicated

 

 7  in a retrievable, recognizable form acceptable to the intended

 

 8  recipient. The electronic form utilized in the transmission of a

 

 9  prescription shall not include "dispense as written" or "d.a.w."

 

10  as the default setting.

 

11        (3) Prior to Before dispensing a prescription that is

 

12  electronically transmitted, the pharmacist shall exercise

 

13  professional judgment regarding the accuracy, validity, and

 

14  authenticity of the transmitted prescription.

 

15        (4) An electronically transmitted prescription that meets

 

16  the requirements of this section is the original prescription.

 

17        Sec. 17768. (1) In a manner consistent with part 161, the

 

18  disciplinary subcommittee may fine, reprimand, or place on

 

19  probation, a person licensed under this part, or deny, limit,

 

20  suspend, or revoke a person's license or order restitution or

 

21  community service for a violation of this part or rules

 

22  promulgated under this part.

 

23        (2) In addition to the grounds set forth in subsection (1),

 

24  and in a manner consistent with part 161, the board may fine,

 

25  reprimand, or place on probation a person licensed under this

 

26  part, or deny, limit, suspend, or revoke a license issued under

 

27  this part or order restitution or community service if the board


 

 1  finds that any of the following categories apply to an applicant

 

 2  or a partner, officer, or member of the board of directors of a

 

 3  pharmacy, manufacturer, or wholesale distributor licensed under

 

 4  this part or a stockholder of a pharmacy, manufacturer, or

 

 5  wholesale distributor which is a privately held corporation

 

 6  licensed under this part:

 

 7        (a) The applicant or other person described in this

 

 8  subsection lacks good moral character.

 

 9        (b) Subject to subsection (3), the applicant or other person

 

10  described in this subsection has been convicted of a misdemeanor

 

11  or a felony under a state or federal law relating to a controlled

 

12  substance or the practice of pharmacy.

 

13        (c) The applicant or other person described in this

 

14  subsection has furnished false or fraudulent material information

 

15  or has knowingly omitted material information in an application

 

16  filed under this part.

 

17        (d) The applicant or other person described in this

 

18  subsection has previously maintained a financial interest in a

 

19  pharmacy, manufacturer, or wholesale distributor which has been

 

20  denied a license or federal registration, has had its license or

 

21  federal registration limited, suspended, or revoked, or been

 

22  subject to any other criminal, civil, or administrative penalty.

 

23        (e) The applicant or other person described in this

 

24  subsection is not in compliance with article 7 or article 8 or

 

25  the rules promulgated under article 7 or article 8.

 

26        (3) Except for a conviction for a misdemeanor under section

 

27  7404 (2)(d) 7404(2)(d) or a local ordinance that is substantially


 

 1  similar to section 7404 (2)(d), 7404(2)(d), the reference to a

 

 2  misdemeanor in subsection (2)(b) applies only to a conviction for

 

 3  a misdemeanor that is directly related to the manufacture,

 

 4  delivery, possession, possession with intent to manufacture or

 

 5  deliver, use, distribution, prescription, or dispensing of a

 

 6  controlled substance. Subsection (2)(b) does not apply to a

 

 7  conviction for a misdemeanor based upon an unintentional error or

 

 8  omission involving a clerical or record-keeping function.

 

 9        Sec. 17775. (1) This section and section 17776 shall be

 

10  known and may be referred to as the "program for utilization of

 

11  unused prescription drugs".

 

12        (2) As used in this section and section 17776:

 

13        (a) "Board" means the Michigan board of pharmacy created

 

14  under section 17721.

 

15        (b) "Cancer drug" means that term as defined in section

 

16  17780.

 

17        (c) "Charitable clinic" means a charitable nonprofit

 

18  corporation or facility that meets all of the following

 

19  requirements:

 

20        (i) Is organized as a not-for-profit corporation pursuant to

 

21  the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to

 

22  450.3192.

 

23        (ii) Holds a valid exemption from federal income taxation

 

24  issued pursuant to under section 501(a) of the internal revenue

 

25  code of 1986, 26 USC 501.

 

26        (iii) Is listed as an exempt organization under section 501(c)

 

27  of the internal revenue code of 1986, 26 USC 501.


 

 1        (iv) Is organized under or operated as a part of a health

 

 2  facility or agency licensed under article 17.

 

 3        (v) Provides on an outpatient basis for a period of less

 

 4  than 24 consecutive hours to persons not residing or confined at

 

 5  the facility advice, counseling, diagnosis, treatment, surgery,

 

 6  care, or services relating to the preservation or maintenance of

 

 7  health.

 

 8        (vi) Has a licensed pharmacy.

 

 9        (d) "Eligible facility" means a medical institution as that

 

10  term is defined in R 338.486 of the Michigan administrative code.

 

11        (e) "Eligible participant" means an individual who meets all

 

12  of the following requirements:

 

13        (i) Is a resident of this state.

 

14        (ii) Is eligible to receive medicaid or medicare or has no

 

15  health insurance and otherwise lacks reasonable means to purchase

 

16  prescription drugs, as prescribed in rules promulgated under this

 

17  section.

 

18        (f) "Health professional" means any of the following

 

19  individuals licensed and authorized to prescribe and dispense

 

20  drugs or to provide medical, dental, or other health-related

 

21  diagnoses, care, or treatment within the scope of his or her

 

22  professional license:

 

23        (i) A physician licensed to practice medicine or osteopathic

 

24  medicine and surgery under part 170 or 175.

 

25        (ii) A physician's assistant licensed under part 170, 175, or

 

26  180.

 

27        (iii) A dentist licensed under part 166.


 

 1        (iv) An optometrist licensed under part 174.

 

 2        (v) A pharmacist licensed under this part.

 

 3        (vi) A podiatrist licensed under part 180.

 

 4        (g) "Program" means the statewide unused prescription drug

 

 5  repository and distribution program known as the program for

 

 6  utilization of unused prescription drugs that is established

 

 7  under this section.

 

 8        (3) The board shall establish, implement, and administer a

 

 9  statewide unused prescription drug repository and distribution

 

10  program consistent with public health and safety through which

 

11  unused or donated prescription drugs, other than controlled

 

12  substances, may be transferred from an eligible facility or

 

13  manufacturer to a pharmacy or a charitable clinic that elects to

 

14  participate in the program. The program is created to dispense

 

15  unused or donated prescription drugs, other than controlled

 

16  substances, to eligible participants and to provide for the

 

17  destruction and disposal of prescription drugs or other

 

18  medications that are ineligible for dispensing under the program.

 

19        (4) Participation in the program by an eligible facility,

 

20  manufacturer, pharmacy, or charitable clinic is voluntary.

 

21  Nothing in this section or section 17776 requires any eligible

 

22  facility, manufacturer, pharmacy, or charitable clinic to

 

23  participate in the program.

 

24        (5) Pharmacies, health professionals, and charitable clinics

 

25  that participate in the program shall use the following criteria

 

26  in accepting unused or donated prescription drugs from eligible

 

27  facilities or manufacturers for use in the program:


 

 1        (a) Only prescription drugs in their original sealed,

 

 2  tamper-evident, and unopened unit dose packaging may be accepted

 

 3  for dispensing. However, prescription drugs packaged in single-

 

 4  unit dose packaging may be accepted for dispensing even if the

 

 5  outside packaging is open as long as the single-unit dose

 

 6  packaging is unopened.

 

 7        (b) The following shall not be accepted for dispensing:

 

 8        (i) Expired prescription drugs.

 

 9        (ii) Controlled substances as defined in article 7 or article

 

10  8 or by federal law.

 

11        (iii) Drugs that have been held outside of a health

 

12  professional's control where sanitation and security cannot be

 

13  assured.

 

14        (iv) Drugs that can only be dispensed to a patient registered

 

15  with the drug's manufacturer under federal food and drug

 

16  administration requirements.

 

17        (c) A prescription drug shall not be accepted for dispensing

 

18  if the person accepting the drug has reason to believe that the

 

19  drug is adulterated.

 

20        (d) Subject to the limitations prescribed in this

 

21  subsection, unused or donated prescription drugs dispensed for

 

22  purposes of a medical assistance program or drug product donation

 

23  program may be accepted for dispensing under the program.

 

24        (e) Any additional criteria established in rules promulgated

 

25  under this section.

 

26        (6) A pharmacy or charitable clinic that meets the

 

27  eligibility requirements for participation in the program and any


 

 1  rules promulgated under this section may do any of the following:

 

 2        (a) Dispense prescription drugs accepted under the program

 

 3  to eligible participants.

 

 4        (b) If established by rule under this section, charge

 

 5  eligible participants who receive prescription drugs under the

 

 6  program a handling fee for the service.

 

 7        (7) A pharmacy or charitable clinic that participates in the

 

 8  program and accepts prescription drugs for the program shall do

 

 9  all of the following:

 

10        (a) Comply with all applicable federal laws and regulations

 

11  and state laws and rules related to the storage and distribution

 

12  of harmful drugs.

 

13        (b) Inspect all accepted prescription drugs before

 

14  dispensing the prescription drugs to determine that the drugs are

 

15  not adulterated.

 

16        (c) Dispense prescription drugs only pursuant to a

 

17  prescription issued by a health professional.

 

18        (8) A pharmacy, health professional, or charitable clinic

 

19  that accepts prescription drugs under the program shall not

 

20  resell the prescription drugs. Receipt of a fee from an eligible

 

21  participant, if established in rules promulgated under this

 

22  section, or reimbursement from a governmental agency to a

 

23  charitable clinic does not constitute resale of prescription

 

24  drugs under this subsection.

 

25        (9) For purposes of the lawful donation, acceptance, or

 

26  dispensing of prescription drugs under the program, the following

 

27  persons that are in compliance with the program, this section and


 

 1  section 17776, and any rules promulgated under this section and

 

 2  in the absence of bad faith or gross negligence are not subject

 

 3  to criminal or civil liability for injury other than death, or

 

 4  loss to person or property, or professional disciplinary action:

 

 5        (a) The board.

 

 6        (b) The department.

 

 7        (c) An eligible facility or manufacturer that donates

 

 8  prescription drugs to the program.

 

 9        (d) A manufacturer or its representative that directly

 

10  donates prescription drugs in professional samples to a

 

11  charitable clinic under the program.

 

12        (e) A pharmacy, charitable clinic, or health professional

 

13  that accepts or dispenses prescription drugs for the program.

 

14        (f) A pharmacy or charitable clinic that employs a health

 

15  professional who accepts prescription drugs for the program and

 

16  who may legally dispense prescription drugs under this part.

 

17        (10) A manufacturer is not, in the absence of bad faith,

 

18  subject to criminal prosecution or liability in tort or other

 

19  civil action for injury, death, or loss to person or property for

 

20  matters related to the donation, acceptance, or dispensing of a

 

21  prescription drug manufactured by the manufacturer that is

 

22  donated by any person under the program, including, but not

 

23  limited to, liability for failure to transfer or communicate

 

24  product or consumer information or the expiration date of the

 

25  donated prescription drug.

 

26        (11) Subject to subsection (12), the department, in

 

27  consultation with the board, shall promulgate rules under the


 

 1  administrative procedures act of 1969 and establish procedures

 

 2  necessary to establish, implement, and administer the program.

 

 3  The board shall provide technical assistance to eligible

 

 4  facilities, manufacturers, pharmacies, and charitable clinics

 

 5  that participate in the program.

 

 6        (12) The department, in consultation with the board, shall

 

 7  promulgate emergency rules under the administrative procedures

 

 8  act of 1969 on or before the expiration of 6 months after the

 

 9  effective date of this section September 28, 2013 to establish,

 

10  implement, and administer the program. The department, in

 

11  consultation with the board, shall promulgate permanent rules

 

12  pursuant to under the administrative procedures act of 1969 as

 

13  soon as practical after emergency rules have been promulgated

 

14  under this subsection. The department and the board shall include

 

15  all of the following in rules promulgated under this section:

 

16        (a) Eligibility criteria for pharmacies and charitable

 

17  clinics authorized to accept and dispense prescription drugs for

 

18  the program.

 

19        (b) Eligibility criteria for eligible participants.

 

20        (c) Establishment of a A list of prescription drugs that are

 

21  not eligible for acceptance and dispensing under the program.

 

22        (d) Standards and procedures for transfer, transportation,

 

23  acceptance, safe storage, security, and dispensing of

 

24  prescription drugs.

 

25        (e) A process for seeking input from the department of human

 

26  services and the department of community health in establishing

 

27  provisions that affect eligible facilities.


 

 1        (f) A process for seeking input from the department of human

 

 2  services and the department of community health in establishing

 

 3  provisions that affect mental health and substance abuse clients.

 

 4        (g) Standards and procedures for inspecting accepted

 

 5  prescription drugs to ensure that the prescription drugs meet the

 

 6  requirements of the program and to ensure that, in the

 

 7  professional judgment of the pharmacist, the prescription drugs

 

 8  meet all federal and state standards for product integrity.

 

 9        (h) Procedures for the destruction and environmentally sound

 

10  disposal of prescription drugs or other medications that are

 

11  accepted and that are ineligible for dispensing under the

 

12  program.

 

13        (i) Procedures for verifying whether the charitable clinic,

 

14  pharmacy, pharmacist, or other health professionals participating

 

15  in the program are licensed and in good standing with the

 

16  applicable licensing board.

 

17        (j) Establishment of standards Standards for acceptance of

 

18  unused or donated prescription drugs from eligible facilities.

 

19        (k) Establishment of standards Standards for the acceptance

 

20  by a pharmacy, health professional, or charitable clinic that

 

21  participates in the program from any person of a prescription

 

22  drug or any other medication that is ineligible for dispensing

 

23  under the program for destruction and disposal.

 

24        (l) Any other standards and procedures the department, in

 

25  consultation with the board, considers appropriate or necessary

 

26  to establish, implement, and administer the program.

 

27        (13) Pursuant to the rules promulgated and standards and


 

 1  procedures established for the program under this section, a

 

 2  resident of an eligible facility or the representative or

 

 3  guardian of a resident of an eligible facility may donate unused

 

 4  prescription drugs for dispensing to eligible participants under

 

 5  the program.

 

 6        (14) Pursuant to rules promulgated and standards and

 

 7  procedures established for the program under this section, a

 

 8  person may deliver to a pharmacy, health professional, or

 

 9  charitable clinic that participates in the program a prescription

 

10  drug or any other medication that is ineligible for dispensing

 

11  under the program for destruction and disposal.

 

12        (15) This section and section 17776 do not impair or

 

13  supersede the provisions regarding the cancer drug repository

 

14  program established in section 17780. If any provision of this

 

15  section or section 17776 conflicts with a provision of section

 

16  17780 with regard to a cancer drug, section 17780 controls.

 

17        Sec. 20176a. (1) A health facility or agency shall not

 

18  discharge or discipline, threaten to discharge or discipline, or

 

19  otherwise discriminate against an employee regarding the

 

20  employee's compensation, terms, conditions, location, or

 

21  privileges of employment because the employee or an individual

 

22  acting on behalf of the employee does either or both of the

 

23  following:

 

24        (a) In good faith reports or intends to report, verbally or

 

25  in writing, the malpractice of a health professional or a

 

26  violation of this article, article 7, article 8, or article 15 or

 

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


 

 1  article 15.

 

 2        (b) Acts as an expert witness in a civil action involving

 

 3  medical malpractice or in an administrative action.

 

 4        (2) In addition to the sanctions set forth in section 20165,

 

 5  a health facility or agency that violates subsection (1) is

 

 6  subject to an administrative fine of not more than $10,000.00 for

 

 7  each violation.

 

 8        Enacting section 1. Sections 7335 and 7336 of the public

 

 9  health code, 1978 PA 368, MCL 333.7335 and 333.7336, are

 

10  repealed.