September 25, 2018, Introduced by Rep. Lauwers and referred to the Committee on Agriculture.
A bill to amend 2016 PA 281, entitled
"Medical marihuana facilities licensing act,"
by amending sections 102 and 206 (MCL 333.27102 and 333.27206),
sections 102 and 206 as amended by 2018 PA 10.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 102. As used in this act:
(a) "Advisory panel" or "panel" means the marihuana advisory
panel created in section 801.
(b) "Affiliate" means any person that controls, is controlled
by, or is under common control with; is in a partnership or joint
venture relationship with; or is a co-shareholder of a corporation,
a co-member of a limited liability company, or a co-partner in a
limited liability partnership with a licensee or applicant.
(c) "Applicant" means a person who applies for a state
operating license. With respect to disclosures in an application,
or for purposes of ineligibility for a license under section 402,
the term applicant includes an officer, director, and managerial
employee of the applicant and a person who holds any direct or
indirect ownership interest in the applicant.
(d) "Board" means the medical marihuana licensing board
created in section 301.
(e) "Cutting" means a section of a lead stem or root stock
that is used for vegetative asexual propagation.
(f) "Department" means the department of licensing and
regulatory affairs.
(g) "Grower" means a licensee that is a commercial entity
located in this state that cultivates, dries, trims, or cures and
packages marihuana for sale to a processor, provisioning center, or
another grower.
(h) "Licensee" means a person holding a state operating
license.
(i) "Marihuana" means that term as defined in section 7106 of
the public health code, 1978 PA 368, MCL 333.7106.
(j) "Marihuana facility" means a location at which a licensee
is licensed to operate under this act.
(k) "Marihuana plant" means any plant of the species Cannabis
sativa L. Marihuana plant does not include industrial hemp as that
term is defined in section 7106 of the public health code, 1978 PA
368, MCL 333.7106.
(l) "Marihuana-infused product" means a topical formulation,
tincture, beverage, edible substance, or similar product containing
any usable marihuana that is intended for human consumption in a
manner other than smoke inhalation. Marihuana-infused product is
not considered a food for purposes of the food law, 2000 PA 92, MCL
289.1101 to 289.8111.
(m) "Marihuana tracking act" means the marihuana tracking act,
2016 PA 282, MCL 333.27901 to 333.27904.
(n) "Michigan medical marihuana act" means the Michigan
medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430.
(o) "Municipality" means a city, township, or village.
(p) "Paraphernalia" means any equipment, product, or material
of any kind that is designed for or used in growing, cultivating,
producing, manufacturing, compounding, converting, storing,
processing, preparing, transporting, injecting, smoking, ingesting,
inhaling, or otherwise introducing into the human body, marihuana.
(q) "Person" means an individual, corporation, limited
liability company, partnership, limited partnership, limited
liability partnership, limited liability limited partnership,
trust, or other legal entity.
(r) "Plant" means any living organism that produces its own
food through photosynthesis and has observable root formation or is
in growth material.
(s) "Processor" means a licensee that is a commercial entity
located in this state that purchases marihuana from a grower and
that extracts resin from the marihuana or creates a marihuana-
infused product for sale and transfer in packaged form to a
provisioning center or another processor.
(t) "Provisioning center" means a licensee that is a
commercial entity located in this state that purchases marihuana
from a grower or processor and sells, supplies, or provides
marihuana to registered qualifying patients, directly or through
the patients' registered primary caregivers. Provisioning center
includes any commercial property where marihuana is sold at retail
to registered qualifying patients or registered primary caregivers.
A noncommercial location used by a primary caregiver to assist a
qualifying patient connected to the caregiver through the
department's marihuana registration process in accordance with the
Michigan medical marihuana act is not a provisioning center for
purposes of this act.
(u) "Registered primary caregiver" means a primary caregiver
who has been issued a current registry identification card under
the Michigan medical marihuana act.
(v) "Registered qualifying patient" means a qualifying patient
who has been issued a current registry identification card under
the Michigan medical marihuana act or a visiting qualifying patient
as that term is defined in section 3 of the Michigan medical
marihuana act, MCL 333.26423.
(w) "Registry identification card" means that term as defined
in section 3 of the Michigan medical marihuana act, MCL 333.26423.
(x) "Rules" means rules promulgated under the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, by the
department in consultation with the board to implement this act.
(y) "Safety compliance facility" means a licensee that is a
commercial entity that takes marihuana from a marihuana facility or
receives marihuana from a registered primary caregiver, tests the
marihuana for contaminants and for tetrahydrocannabinol and other
cannabinoids, returns the test results, and may return the
marihuana to the marihuana facility.
(z) "Secure transporter" means a licensee that is a commercial
entity located in this state that stores marihuana and transports
marihuana between marihuana facilities for a fee.
(aa) "Seed" means the fertilized, ungerminated, matured ovule,
containing an embryo or rudimentary plant, of a marihuana plant
that is flowering.
(bb) "Seedling" means a marihuana plant that has germinated
and has not flowered and is not harvestable.
(cc) "State operating license" or, unless the context requires
a different meaning, "license" means a license that is issued under
this act that allows the licensee to operate as 1 of the following,
specified in the license:
(i) A grower.
(ii) A processor.
(iii) A secure transporter.
(iv) A provisioning center.
(v) A safety compliance facility.
(dd) "Statewide monitoring system" or, unless the context
requires a different meaning, "system" means an internet-based,
statewide database established, implemented, and maintained by the
department under the marihuana tracking act, that is available to
licensees, law enforcement agencies, and authorized state
departments and agencies on a 24-hour basis for all of the
following:
(i) Verifying registry identification cards.
(ii) Tracking marihuana transfer and transportation by
licensees, including transferee, date, quantity, and price.
(iii) Verifying in commercially reasonable time that a
transfer will not exceed the limit that the patient or caregiver is
authorized to receive under section 4 of the Michigan medical
marihuana act, MCL 333.26424.
(ee) "Tissue culture" means a marihuana plant cell, cutting,
tissue, or organ, that is kept under a sterile condition on a
nutrient culture medium of known composition and that does not have
visible root formation. A tissue culture is not a marihuana plant
for purposes of a grower.
(ff) "Usable marihuana" means the dried leaves, flowers, plant
resin, or extract of the marihuana plant, but does not include the
seeds, stalks, and roots of the plant.
Sec. 206. The department, in consultation with the board,
shall promulgate rules and emergency rules as necessary to
implement, administer, and enforce this act. The rules must ensure
the safety, security, and integrity of the operation of marihuana
facilities, and must include rules to do the following:
(a) Set appropriate standards for marihuana facilities and
associated equipment.
(b) Subject to section 408, establish minimum levels of
insurance that licensees must maintain.
(c) Establish operating regulations for each category of
license to ensure the health, safety, and security of the public
and the integrity of marihuana facility operations.
(d) Establish qualifications and restrictions for persons
participating in or involved with operating marihuana facilities.
(e) Establish testing standards, procedures, and requirements
for marihuana sold through provisioning centers.
(f) Provide for the levy and collection of fines for a
violation of this act or rules.
(g) Prescribe use of the statewide monitoring system to track
all marihuana transfers, as provided in the marihuana tracking act
and this act, and provide for a funding mechanism to support the
system.
(h) Establish quality control standards, procedures, and
requirements for marihuana facilities.
(i) Establish chain of custody standards, procedures, and
requirements for marihuana facilities.
(j) Establish standards, procedures, and requirements for
waste product disposal and storage by marihuana facilities.
(k) Establish chemical storage standards, procedures, and
requirements for marihuana facilities.
(l) Establish standards, procedures, and requirements for
securely and safely transporting marihuana between marihuana
facilities.
(m) Establish standards, procedures, and requirements for the
storage of marihuana by marihuana facilities.
(n) Establish labeling and packaging standards, procedures,
and requirements for marihuana sold or transferred through
provisioning centers, including a prohibition on labeling or
packaging that is intended to appeal to or has the effect of
appealing to minors.
(o) Establish daily and monthly purchasing limits at
provisioning centers for registered qualifying patients and
registered primary caregivers to ensure compliance with the
Michigan medical marihuana act.
(p) Establish marketing and advertising restrictions for
marihuana products and marihuana facilities.
(q) Establish maximum tetrahydrocannabinol levels for
marihuana-infused products sold or transferred through provisioning
centers.
(r) Establish health standards to ensure the safe preparation
of products containing marihuana that are intended for human
consumption in a manner other than smoke inhalation.
(s) Establish restrictions on edible marihuana-infused
products to prohibit shapes that would appeal to minors.
(t) Establish standards, procedures, and requirements for the
sale of industrial hemp from a provisioning center to a registered
qualified patient. The rules promulgated under this subdivision
must be promulgated before March 1, 2019.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless House Bill No. 6330 of the 99th Legislature is enacted into
law.