HOUSE BILL NO. 4250

February 16, 2021, Introduced by Reps. Hammoud, Tyrone Carter, Sowerby, Stone, O'Neal, Cynthia Johnson and Weiss and referred to the Committee on Regulatory Reform.

"Michigan Regulation and Taxation of Marihuana Act,"

by amending sections 3, 11, and 15 (MCL 333.27953, 333.27961, and 333.27965), section 3 as amended by 2020 PA 208.

the people of the state of michigan enact:

Sec. 3. As used in this act:

(a) "Cultivate" means to propagate, breed, grow, harvest, dry, cure, or separate parts of the marihuana plant by manual or mechanical means.

(b) "Department" means the department of licensing and regulatory affairs.

(c) "Industrial hemp" means a plant of the genus Cannabis and any part of that plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of 0.3% or less on a dry-weight basis or per volume or weight of marihuana-infused product, or for which the combined percent of delta-9-tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of the plant, regardless of moisture content, is 0.3% or less.that term as defined in section 7106 of the public health code, 1978 PA 368, MCL 333.7106.

(d) "Licensee" means a person holding a state license.

(e) "Marihuana" means all parts of the plant of the genus Cannabis, growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds or resin, including marihuana concentrate and marihuana-infused products. Marihuana does not include any of the following:

(i) The mature stalks of the plant, fiber produced from the mature stalks, oil or cake made from the seeds of the plant, or any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks.

(ii) Industrial hemp.

(iii) Any other ingredient combined with marihuana to prepare topical or oral administrations, food, drink, or other products.that term as defined in section 7106 of the public health code, 1978 PA 368, MCL 333.7106.

(f) "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.

(g) "Marihuana concentrate" means the resin extracted from any part of the plant of the genus Cannabis.

(h) "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.

(i) "Marihuana grower" means a person licensed to cultivate marihuana and sell or otherwise transfer marihuana to marihuana establishments.

(j) "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.

(k) "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.

(l) "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.

(m) "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.

(n) "Marihuana secure transporter" means a person licensed to obtain marihuana from marihuana establishments in order to transport marihuana to marihuana establishments.

(o) "Marihuana safety compliance facility" means a person licensed to test marihuana, including certification for potency and the presence of contaminants.

(p) "Marijuana regulatory agency" means the marijuana regulatory agency created under Executive Reorganization Order No. 2019-2, MCL 333.27001.

(q) "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.

(r) "Municipality" means a city, village, or township.

(s) "Person" means an individual, corporation, limited liability company, partnership of any type, trust, or other legal entity.

(t) "Process" or "processing" means to separate or otherwise prepare parts of the marihuana plant and to compound, blend, extract, infuse, or otherwise make or prepare marihuana concentrate or marihuana-infused products.

(u) "State license" means a license issued by the marijuana regulatory agency that allows a person to operate a marihuana establishment.

(v) "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. 11. (1) (a) A marihuana establishment may shall not allow cultivation, processing, sale, do any of the following:

(a) Cultivate, process, sell, or display of marihuana or sell or display marihuana accessories to be if the cultivating, processing, selling, or displaying is visible from a public place outside of the marihuana establishment without the use of binoculars, aircraft, or other optical aids.

(b) A marihuana establishment may not cultivate, Cultivate, process, test, or store marihuana at any location other than a physical address approved by the department. and within an enclosed area that is secured in a manner that prevents access by persons not permitted by the marihuana establishment to access the area.

(d) Sell or otherwise transfer marihuana that was not produced, distributed, and taxed in compliance with this act.

(e) Sell or otherwise transfer tobacco.

(2) A marihuana establishment shall secure comply with all or the following:

(a) Cultivate, process, test, and store marihuana within an enclosed area that is secured in a manner that prevents access by persons not allowed by the marihuana establishment to access the area.

(b) Secure every entrance to the marihuana establishment so that access to areas containing marihuana is restricted to employees only the following:

(i) Employees and other persons permitted allowed by the marihuana establishment to access the area. and to agents

(ii) Agents of the department marijuana regulatory agency. or state

(iii) State and local law enforcement officers and emergency personnel. and shall secure

(c) Secure its inventory and equipment during and after operating hours to deter and prevent theft of marihuana and marihuana accessories.

(d) No marihuana establishment may refuse representatives Allow agents of the department the right marijuana regulatory agency, during the marihuana establishment's hours of operation to inspect the licensed premises or to audit the books and records of the marihuana establishment.

(e) No marihuana establishment may allow a person under 21 years of age to volunteer or work for the marihuana establishment.

(f) No marihuana establishment may sell or otherwise transfer marihuana that was not produced, distributed, and taxed in compliance with this act.

(3) (g) A marihuana grower, marihuana retailer, marihuana processor, marihuana microbusiness, or marihuana testing facility or agents acting on their behalf may its agent shall not transport more than 15 ounces of marihuana or more than 60 grams of marihuana concentrate at one time.

(4) (h) A marihuana secure transporter may shall not hold title to marihuana.

(5) (i) No A marihuana processor may shall not process and no a marihuana retailer may shall not sell edible any of the following:

(a) Edible marihuana-infused candy in shapes or packages that are attractive to children or that are easily confused with commercially sold candy that does not contain marihuana.

(b) Marihuana intended for inhalation or a marihuana-infused product intended for inhalation if the marihuana or marihuana-infused product contains or has been combined with vitamin E acetate.

(6) (j) No A marihuana retailer may shall not sell or otherwise transfer marihuana that unless it is not contained in an opaque, resealable, child-resistant package designed to be significantly difficult for children under younger than 5 years of age to open and not difficult for normal adults to use properly as defined by 16 C.F.R. 1700.20 (1995), provided for under 16 CFR 1700.20, unless the marihuana is transferred for consumption on the premises where sold.

(k) No marihuana establishment may sell or otherwise transfer tobacco.

Sec. 15. (1) A person who commits any of the following acts, and is not otherwise authorized by this act to conduct such activities, commit the acts, may be punished only as provided in this section and is not subject to any other form of punishment or disqualification, unless the person consents to another disposition authorized by law:

(a) 1. Except for a person who engaged in conduct described in sections section 4(1)(a), 4(1)(b), 4(1)(c), 4(1)(d), 4(1)(g), or 4(1)(h), (b), (c), (d), (g), or (h), a person who possesses not more than the amount of marihuana allowed by under section 5, cultivates not more than the amount of marihuana allowed by under section 5, delivers without receiving any remuneration to a person who is at least 21 years of age or older not more than the amount of marihuana allowed by under section 5, or possesses with intent to deliver not more than the amount of marihuana allowed by under section 5, is responsible for a civil infraction and may be punished by a fine of not more than $100 $100.00 and forfeiture of the marihuana.

(b) 2. Except for a person who engaged in conduct described in section 4, a person who possesses not more than twice the amount of marihuana allowed by under section 5, cultivates not more than twice the amount of marihuana allowed by under section 5, delivers without receiving any remuneration to a person who is at least 21 years of age or older not more than twice the amount of marihuana allowed by under section 5, or possesses with intent to deliver not more than twice the amount of marihuana allowed by under section 5, may be punished as follows:

(i) (a) for For a first violation, the person is responsible for a civil infraction and may be punished by a fine of not more than $500 $500.00 and forfeiture of the marihuana. ;

(ii) (b) for For a second violation, the person is responsible for a civil infraction and may be punished by a fine of not more than $1,000 $1,000.00 and forfeiture of the marihuana. ;

(iii) (c) for For a third or and any subsequent violation, the person is guilty of a misdemeanor and may be punished by a fine of not more than $2,000 $2,000.00 and forfeiture of the marihuana.

(c) 3. Except for a person who engaged in conduct described by in section 4(1)(a), 4(1)(d), or 4(1)(g), (d), or (g), a person under younger than 21 years of age who possesses not more than 2.5 ounces of marihuana or who cultivates not more than 12 marihuana plants may be punished as follows:

(i) (a) for For a first violation, the person is responsible for a civil infraction and may be punished as follows:

(A) (1) if If the person is less younger than 18 years of age, by a fine of not more than $100 $100.00 or community service, forfeiture of the marihuana, and completion of 4 hours of drug education or counseling. ; or

(B) (2) if If the person is at least 18 years of age or older, by a fine of not more than $100 $100.00 and forfeiture of the marihuana.

(ii) (b) for For a second violation, the person is responsible for a civil infraction and may be punished as follows:

(A) (1) if If the person is less younger than 18 years of age, by a fine of not more than $500 $500.00 or community service, forfeiture of the marihuana, and completion of 8 hours of drug education or counseling. ; or

(B) (2) if If the person is at least 18 years of age or older, by a fine of not more than $500 $500.00 and forfeiture of the marihuana.

(d) 4. Except for a person who engaged in conduct described in section 4, a person who possesses more than twice the amount of marihuana allowed by under section 5, cultivates more than twice the amount of marihuana allowed by under section 5, or delivers without receiving any remuneration to a person who is at least 21 years of age or older more than twice the amount of marihuana allowed by under section 5, shall be is responsible for a misdemeanor, but shall is not be subject to imprisonment unless the violation was habitual, willful, and for a commercial purpose or the violation involved violence.

(2) A marihuana processor or marihuana retailer that violates section 11(5)(b) is guilty of a misdemeanor punishable by a fine of not more than $10,000.00.