HOUSE BILL NO. 6057
A bill to amend 2018 IL 1, entitled
"Michigan Regulation and Taxation of Marihuana Act,"
by amending sections 3, 8, and 10 (MCL 333.27953, 333.27958, and 333.27960), sections 3 and 8 as amended by 2021 PA 56.
the people of the state of michigan enact:
(a) "Cultivate" means to propagate, breed, grow, harvest, dry, cure, or separate parts of a marihuana plant by manual or mechanical means.
(b) "Department" means the department of licensing and regulatory affairs.
(c) "Hazardous waste" means hazardous waste as that term is defined in section 11103 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11103.
(d) (c) "Industrial hemp" means any of the following:
(i) A plant of the genus Cannabis, whether growing or not, with a THC concentration of 0.3% or less on a dry-weight basis.
(ii) A part of a plant of the genus Cannabis, whether growing or not, with a THC concentration of 0.3% or less on a dry-weight basis.
(iii) The seeds of a plant of the genus Cannabis with a THC concentration of 0.3% or less on a dry-weight basis.
(iv) If it has a THC concentration of 0.3% or less on a dry-weight basis, a compound, manufacture, derivative, mixture, preparation, extract, cannabinoid, acid, salt, isomer, or salt of an isomer of any of the following:
(A) A plant of the genus Cannabis.
(B) A part of a plant of the genus Cannabis.
(v) A product to which 1 of the following applies:
(A) If the product is intended for human or animal consumption, the product, in the form in which it is intended for sale to a consumer, meets both of the following requirements:
(I) Has a THC concentration of 0.3% or less on a dry-weight or per volume basis.
(II) Contains a total amount of THC that is less than or equal to the limit established by the marijuana regulatory agency under section 8(1)(n).
(B) If the product is not intended for human or animal consumption, the product meets both of the following requirements:
(I) Contains a substance listed in subparagraph (i), (ii), (iii), or (iv).
(II) Has a THC concentration of 0.3% or less on a dry-weight basis.
(e) (d) "Licensee" means a person holding a state license.
(f) (e) "Marihuana" means any of the following:
(i) A plant of the genus Cannabis, whether growing or not.
(ii) A part of a plant of the genus Cannabis, whether growing or not.
(iii) The seeds of a plant of the genus Cannabis.
(iv) Marihuana concentrate.
(v) A compound, manufacture, salt, derivative, mixture, extract, acid, isomer, salt of an isomer, or preparation of any of the following:
(A) A plant of the genus Cannabis.
(B) A part of a plant of the genus Cannabis.
(C) The seeds of a plant of the genus Cannabis.
(D) Marihuana concentrate.
(vi) A marihuana-infused product.
(vii) A product with a THC concentration of more than 0.3% on a dry-weight or per volume basis in the form in which it is intended for sale to a consumer.
(viii) A product that is intended for human or animal consumption and that contains, in the form in which it is intended for sale to a consumer, a total amount of THC that is greater than the limit established by the marijuana regulatory agency under section 8(1)(n).
(g) (f) Except for marihuana concentrate extracted from any of the following, "marihuana" does not include any of the following:
(i) The mature stalks of a plant of the genus Cannabis.
(ii) Fiber produced from the mature stalks of a plant of the genus Cannabis.
(iii) Oil or cake made from the seeds of a plant of the genus Cannabis.
(iv) A compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks of a plant of the genus Cannabis.
(v) Industrial hemp.
(vi) An ingredient combined with marihuana to prepare topical or oral administrations, food, drink, or other products.
(vii) A drug for which an application filed in accordance with 21 USC 355 is approved by the Food and Drug Administration.
(h) (g) "Marihuana accessories" means any equipment, product, material, or combination of equipment, products, or materials, that is specifically designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, containing, ingesting, inhaling, or otherwise introducing marihuana into the human body.
(i) (h) "Marihuana concentrate" means the resin extracted from any part of a plant of the genus Cannabis.
(j) "Marihuana disposer" means the owner or operator of any of the following:
(i) A site that qualifies as a registered composting facility under section 11521(4) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11521.
(ii) An incinerator for which an operating permit has been issued under part 55 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5501 to 324.5542.
(iii) A landfill for which an operating license has been issued under part 115 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11501 to 324.11554.
(iv) An anaerobic digester for which an operating license has been issued under part 115 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11501 to 324.11554.
(k) (i) "Marihuana establishment" means a marihuana grower, marihuana safety compliance facility, marihuana processor, marihuana microbusiness, marihuana retailer, marihuana secure transporter, or any other type of marihuana-related business licensed by the marijuana regulatory agency.
(l) (j) "Marihuana grower" means a person licensed to cultivate marihuana and sell or otherwise transfer marihuana to marihuana establishments.
(m) (k) "Marihuana-infused product" means a topical formulation, tincture, beverage, edible substance, or similar product containing marihuana and other ingredients and that is intended for human consumption.
(n) (l) "Marihuana microbusiness" means a person licensed to cultivate not more than 150 marihuana plants; process and package marihuana; and sell or otherwise transfer marihuana to individuals who are 21 years of age or older or to a marihuana safety compliance facility, but not to other marihuana establishments.
(o) "Marihuana plant waste" means a root, stalk, leaf, stem, or root ball of a marihuana plant, including any associated soil or organic potting media, that is intended for destruction by means of incineration, landfilling, composting, or anaerobic digestion. Marihuana plant waste does not include hazardous waste.
(p) (m) "Marihuana processor" means a person licensed to obtain marihuana from marihuana establishments; process and package marihuana; and sell or otherwise transfer marihuana to marihuana establishments.
(q) (n) "Marihuana retailer" means a person licensed to obtain marihuana from marihuana establishments and to sell or otherwise transfer marihuana to marihuana establishments and to individuals who are 21 years of age or older.
(r) "Marihuana safety compliance facility" means a person licensed to test marihuana, including certification for potency and the presence of contaminants.
(s) (o) "Marihuana secure transporter" means a person licensed to obtain marihuana from marihuana establishments in order to transport marihuana to marihuana establishments.
(p) "Marihuana safety compliance facility" means a person licensed to test marihuana, including certification for potency and the presence of contaminants.
(t) (q) "Marijuana regulatory agency" means the marijuana regulatory agency created under Executive Reorganization Order No. 2019-2, MCL 333.27001.
(u) (r) "Municipal license" means a license issued by a municipality pursuant to section 16 that allows a person to operate a marihuana establishment in that municipality.
(v) (s) "Municipality" means a city, village, or township.
(w) (t) "Person" means an individual, corporation, limited liability company, partnership of any type, trust, or other legal entity.
(x) (u) "Process" or "processing" means to separate or otherwise prepare parts of a marihuana plant and to compound, blend, extract, infuse, or otherwise make or prepare marihuana concentrate or marihuana-infused products.
(y) (v) "State license" means a license issued by the marijuana regulatory agency that allows a person to operate a marihuana establishment.
(z) (w) "THC" means any of the following:
(i) Tetrahydrocannabinolic acid.
(ii) Unless excluded by the marijuana regulatory agency under section 8(2)(c), a tetrahydrocannabinol, regardless of whether it is artificially or naturally derived.
(iii) A tetrahydrocannabinol that is a structural, optical, or geometric isomer of a tetrahydrocannabinol described in subparagraph (ii).
(aa) (x) "Unreasonably impracticable" means that the measures necessary to comply with the rules or ordinances adopted pursuant to this act subject licensees to unreasonable risk or require such a high investment of money, time, or any other resource or asset that a reasonably prudent businessperson would not operate the marihuana establishment.
Sec. 8. (1) The marijuana regulatory agency shall promulgate rules to implement and administer this act that include all of the following:
(a) Procedures for issuing a state license pursuant to section 9 and for renewing, suspending, and revoking a state license.
(b) A schedule of fees in amounts not more than necessary to pay for implementation, administration, and enforcement costs of this act and that relate to the size of each licensee or the volume of business conducted by the licensee.
(c) Qualifications for licensure that are directly and demonstrably related to the operation of a marihuana establishment. However, a prior conviction solely for a marihuana-related offense must not disqualify an individual or otherwise affect eligibility for licensure, unless the offense involved distribution of a controlled substance to a minor.
(d) Requirements and standards for safe cultivation, processing, and distribution of marihuana by marihuana establishments, including health standards to ensure the safe preparation of marihuana-infused products and prohibitions on pesticides that are not safe for use on marihuana.
(e) Testing, packaging, and labeling standards, procedures, and requirements for marihuana, including, but not limited to, all of the following:
(i) A maximum THC level for marihuana-infused products.
(ii) A requirement that a representative sample of marihuana be tested by a marihuana safety compliance facility.
(iii) A requirement that the amount of marihuana or marihuana concentrate contained within a marihuana-infused product be specified on the product label.
(iv) A requirement that all marihuana sold through marihuana retailers and marihuana microbusinesses include on the exterior of the marihuana packaging the following warning printed in clearly legible type and surrounded by a continuous heavy line:
WARNING: USE BY PREGNANT OR BREASTFEEDING WOMEN, OR BY
WOMEN PLANNING TO BECOME PREGNANT, MAY RESULT IN FETAL
INJURY, PRETERM BIRTH, LOW BIRTH WEIGHT, OR DEVELOPMENTAL
PROBLEMS FOR THE CHILD.
(f) Security requirements, including lighting, physical security, and alarm requirements, and requirements for securely transporting marihuana between marihuana establishments. The requirements described in this subdivision must not prohibit cultivation of marihuana outdoors or in greenhouses.
(g) Record keeping requirements for marihuana establishments and monitoring requirements to track the transfer of marihuana by licensees.
(h) Requirements for the operation of marihuana secure transporters to ensure that all marihuana establishments are properly serviced.
(i) Reasonable restrictions on advertising, marketing, and display of marihuana and marihuana establishments.
(j) A plan to promote and encourage participation in the marihuana industry by people from communities that have been disproportionately impacted by marihuana prohibition and enforcement and to positively impact those communities.
(k) Penalties for failure to comply with a rule promulgated pursuant to this section or for a violation of this act by a licensee, including civil fines and suspension, revocation, or restriction of a state license.
(l) Informational pamphlet standards for marihuana retailers and marihuana microbusinesses, including, but not limited to, a requirement to make available to every customer at the time of sale a pamphlet measuring 3.5 inches by 5 inches that includes safety information related to marihuana use by minors and the poison control hotline number.
(m) Procedures and standards for approving an appointee to operate a marihuana establishment under section 9a.
(n) A limit on the total amount of THC that a product described in section 3(c)(v)(A) 3(d)(v)(A) may contain.
(2) The marijuana regulatory agency may promulgate rules to do any of the following:
(a) Provide for the issuance of additional types or classes of state licenses to operate marihuana-related businesses, including licenses that authorize any of the following:
(i) Limited cultivation, processing, transportation, delivery, storage, sale, or purchase of marihuana.
(ii) Consumption of marihuana within designated areas.
(iii) Consumption of marihuana at special events in limited areas and for a limited time.
(iv) Cultivation for purposes of propagation.
(v) Facilitation of scientific research or education.
(b) Regulate the cultivation, processing, distribution, and sale of industrial hemp.
(c) Exclude from the definition of THC in section 3 a tetrahydrocannabinol if, after the marijuana regulatory agency makes findings with respect to each of the following factors, the marijuana regulatory agency determines that the tetrahydrocannabinol does not have a potential for abuse:
(i) The actual or relative potential for abuse of the tetrahydrocannabinol.
(ii) The scientific evidence of the tetrahydrocannabinol's pharmacological effect, if known.
(iii) The state of current scientific knowledge regarding the tetrahydrocannabinol.
(iv) The history and current pattern of abuse of the tetrahydrocannabinol.
(v) The scope, duration, and significance of abuse of the tetrahydrocannabinol.
(vi) The tetrahydrocannabinol's risk to the public health.
(vii) The potential of the tetrahydrocannabinol to produce psychic or physiological dependence liability.
(3) The marijuana regulatory agency shall not promulgate a rule that is unreasonably impracticable or that does any of the following:
(a) Establishes a limit on the number of any type of state license that may be granted.
(b) Requires a customer to provide a marihuana retailer with identifying information other than identification to determine the customer's age or requires the marihuana retailer to acquire or record personal information about customers other than information typically required in a retail transaction.
(c) Prohibits a marihuana establishment from operating at a shared location of a marihuana facility operating pursuant to the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, or prohibits a marihuana grower, marihuana processor, or marihuana retailer from operating within a single facility.
(d) Is unreasonably impracticable.Requires a licensee to do either of the following:
(i) Combine marihuana plant waste with any other product.
(ii) Render marihuana plant waste unusable or unrecognizable.
(4) A rule promulgated under this act must be promulgated pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 10. (1) 1. Notwithstanding any other law or provision of this act, and except as otherwise provided in section 4 of this act or the rules promulgated thereunder, under this act, the following acts are not unlawful, are not an offense, are not grounds for seizing or forfeiting property, are not grounds for arrest, prosecution, or penalty in any manner, are not grounds for search or inspection except as authorized by this act, and are not grounds to deny any other right or privilege:
(a) For a marihuana grower or an agent acting on behalf of a marihuana grower who is 21 years of age or older, cultivating not more than the number of marihuana plants authorized by the state license class; possessing, packaging, storing, or testing marihuana; acquiring marihuana seeds or seedlings from a person who is 21 years of age or older; selling or otherwise transferring, purchasing or otherwise obtaining, or transporting marihuana to or from a marihuana establishment; transferring marihuana plant waste to a marihuana disposer; or receiving compensation for goods or services. ;
(b) For a marihuana processor or agent acting on behalf of a marihuana processor who is 21 years of age or older, possessing, processing, packaging, storing, or testing marihuana; selling or otherwise transferring, purchasing or otherwise obtaining, or transporting marihuana to or from a marihuana establishment; transferring marihuana plant waste to a marihuana disposer; or receiving compensation for goods or services. ;
(c) For a marihuana secure transporter or an agent acting on behalf of a marihuana secure transporter who is 21 years of age or older, possessing or storing marihuana; transporting marihuana to or from a marihuana establishment; transferring marihuana plant waste to a marihuana disposer; transporting marihuana plant waste from a marihuana establishment to a marihuana disposer's site or facility; or receiving compensation for services. ;
(d) For a marihuana safety compliance facility or an agent acting on behalf of a marihuana safety compliance facility who is 21 years of age or older, testing, possessing, repackaging, or storing marihuana; transferring, obtaining, or transporting marihuana to or from a marihuana establishment; transferring marihuana plant waste to a marihuana disposer; or receiving compensation for services. ;
(e) For a marihuana retailer or an agent acting on behalf of a marihuana retailer who is 21 years of age or older, possessing, storing, or testing marihuana; selling or otherwise transferring, purchasing or otherwise obtaining, or transporting marihuana to or from a marihuana establishment; selling or otherwise transferring marihuana to a person 21 years of age or older; transferring marihuana plant waste to a marihuana disposer; or receiving compensation for goods or services. ; or
(f) For a marihuana microbusiness or an agent acting on behalf of a marihuana microbusiness who is 21 years of age or older, cultivating not more than 150 marihuana plants; possessing, processing, packaging, storing, or testing marihuana from marihuana plants cultivated on the premises; selling or otherwise transferring marihuana cultivated or processed on the premises to a person 21 years of age or older; transferring marihuana plant waste to a marihuana disposer; or receiving compensation for goods or services.
(g) For a marihuana disposer or an agent acting on behalf of a marihuana disposer who is 21 years of age or older, disposing of marihuana plant waste at the marihuana disposer's site or facility; transporting marihuana plant waste from a licensee to the marihuana disposer's site or facility; or receiving compensation for services.
(h) (g) leasing Leasing or otherwise allowing the use of property owned, occupied, or managed for activities allowed under this act. ;
(i) (h) enrolling Enrolling or employing a person who engages in marihuana-related activities allowed under this act. ;
(j) (i) possessing, Possessing, cultivating, processing, obtaining, transferring, or transporting industrial hemp. ; or
(k) (j) providing Providing professional services to prospective or licensed marihuana establishments related to activity under this act.
(2) 2. A person acting as an agent of a marihuana retailer who sells or otherwise transfers marihuana or marihuana accessories to a person under 21 years of age is not subject to arrest, prosecution, forfeiture of property, disciplinary action by a professional licensing board, denial of any right or privilege, or penalty in any manner, if the person reasonably verified that the recipient appeared to be 21 years of age or older by means of government-issued photographic identification containing a date of birth, and the person complied with any rules promulgated pursuant to this act.
(3) 3. It is the public policy of this state that contracts related to the operation of marihuana establishments be enforceable.