Bill Text: MI HB5548 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Marihuana; other; number of marihuana plants authorized to be grown; increase based on license type. Amends secs. 3, 9 & 10 of 2018 IL 1 (MCL 333.27953 et seq.).
Spectrum: Moderate Partisan Bill (Democrat 12-3)
Status: (Introduced - Dead) 2020-02-26 - Bill Electronically Reproduced 02/26/2020 [HB5548 Detail]
Download: Michigan-2019-HB5548-Introduced.html
HOUSE BILL NO. 5548
February 25, 2020, Introduced by Reps. Rabhi,
Filler, Brixie, LaGrand, Steven Johnson, Marino, Wittenberg, Cambensy,
Chirkun, Hertel, Peterson, Warren, Lasinski, Tate and Cherry and referred
to the Committee on Government Operations.
A bill to amend 2018 IL 1, entitled
"Michigan Regulation and Taxation of Marihuana Act,"
by amending sections 3, 9, and 10 (MCL 333.27953, 333.27959, and 333.27960).
the people of the state of michigan enact:
(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) "Flowering marihuana plant" means a male or female marihuana plant that has visible calices, stigma, or pre-flowers located at the node of a stem or branch.
(d) (c) "Industrial hemp" means a plant of the genus cannabis Cannabis and any part of that plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration that does not exceed 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, of the genus cannabis regardless of moisture content, is 0.3% or less.
(e) (d) "Licensee" means a person holding a state license.
(f) (e) "Marihuana" means all parts of the marihuana 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. For purposes of this act, marihuana Marihuana does not include any of the following:
(i) (1) the 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. , except the resin extracted from those stalks, fiber, oil, or cake, or any sterilized seed of the plant that is incapable of germination;
(ii) (2) industrial Industrial hemp. ; or
(iii) (3) any Any other ingredient combined with marihuana to prepare topical or oral administrations, food, drink, or other products.
(g) (f) "Marihuana accessories" means any equipment, product, material, or combination of equipment, products, or materials, which 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.
(h) (g) "Marihuana concentrate" means the resin extracted from any part of the plant of the genus cannabis.Cannabis.
(i) (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 department.marijuana regulatory agency.
(j) (i) "Marihuana grower" means a person licensed to cultivate marihuana and sell or otherwise transfer marihuana to marihuana establishments.
(k) (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.
(l) (k) "Marihuana microbusiness" means a person licensed to cultivate not more than 150 450 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.
(m) "Marihuana plant" means a plant of the genus cannabis. Marihuana plant does not include industrial hemp.
(n) (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.
(o) (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.
(p) (n) "Marihuana secure transporter" means a person licensed to obtain marihuana from marihuana establishments in order to transport marihuana to marihuana establishments.
(q) (o) "Marihuana safety compliance facility" means a person licensed to test marihuana, including certification for potency and the presence of contaminants.
(r) "Marijuana regulatory agency" means the marijuana regulatory agency created under Executive Reorganization Order No. 2019-2, MCL 333.27001.
(s) (p) "Municipal license" means a license issued by a municipality pursuant to section 16 of this act that allows a person to operate a marihuana establishment in that municipality.
(t) (q) "Municipality" means a city, village, or township.
(u) (r) "Person" means an individual, corporation, limited liability company, partnership of any type, trust, or other legal entity.
(v) (s) "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.
(w) (t) "State license" means a license issued by the department marijuana regulatory agency that allows a person to operate a marihuana establishment.
(x) (u) "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. 9. (1) 1. Each An application for a state license must be submitted to the department. Upon receipt of marijuana regulatory agency. Within 90 days after receiving a complete application and application fee, the department marijuana regulatory agency shall forward do all of the following:
(a) Forward a copy of the application to the municipality in which the marihuana establishment is to will be located. , determine
(b) Determine whether the applicant and the premises qualify for the state license and comply with this act. , and issue
(c) Issue the appropriate state license or send the applicant a notice of rejection setting forth that states the specific reasons why the department did not approve the state license application. within 90 days.
(2) 2. The department marijuana regulatory agency shall issue the following state license types: marihuana
(a) Marihuana retailer. ; marihuana
(b) Marihuana safety compliance facility. ; marihuana
(c) Marihuana secure transporter. ; marihuana
(d) Marihuana processor. ; marihuana
(e) Marihuana microbusiness. ; class
(f) Class A marihuana grower authorizing cultivation of not more than 100 300 marihuana plants, not more than 100 of which may be flowering marihuana plants. ; class
(g) Class B marihuana grower authorizing cultivation of not more than 500 1,500 marihuana plants, not more than 500 of which may be flowering marihuana plants. ; and class
(h) Class C marihuana grower authorizing cultivation of not more than 2,000 6,000 marihuana plants, not more than 2,000 of which may be flowering marihuana plants.
(3) 3. Except as otherwise provided in this section, the department marijuana regulatory agency shall approve a state license application and issue a state license if all of the following conditions are met:
(a) the The applicant has submitted an application in compliance with pursuant to the rules promulgated by the department, under this act, is in compliance with this act and the rules promulgated under this act, and has paid the required application fee. ;
(b) the The municipality in which the proposed marihuana establishment will be located does not notify the department that the proposed marihuana establishment is would not in compliance comply with an ordinance consistent with adopted under section 6 of this act and that is in effect at the time of application;on the date the application is submitted.
(c) the The property where the proposed marihuana establishment is to will be located is not within an area zoned exclusively for residential use and is not within 1,000 feet, or a shorter distance prescribed by an applicable ordinance adopted under section 6, of a pre-existing public or private school providing education in kindergarten or any of grades 1 through to 12. , unless a municipality adopts an ordinance that reduces this distance requirement;
(d) no Approval of the application will not result in a person who holds an ownership interest in the marihuana establishment applicant holding any of the following:
(i) (1) will hold an An ownership interest in both a marihuana safety compliance facility or in a marihuana secure transporter and in a marihuana grower, a marihuana processor, a marihuana retailer, or a marihuana microbusiness. ;
(ii) (2) will hold an An ownership interest in both a marihuana microbusiness and in a marihuana grower, a marihuana processor, a marihuana retailer, a marihuana safety compliance facility, or a marihuana secure transporter. ; and
(iii) (3) will hold an An ownership interest in more than 5 marihuana growers or in more than 1 marihuana microbusiness, except that the department may approve a license application from a person who holds an ownership interest in more than 5 marihuana growers or more than 1 marihuana microbusiness if, unless the marijuana regulatory agency, after January 1, 2023, the department promulgates a rule authorizing an individual a person to hold an ownership interest in more than 5 marihuana growers or in more than 1 marihuana microbusiness.
(4) 4. If a municipality an ordinance adopted under section 6 limits the number of marihuana establishments that may be licensed in the a municipality pursuant to section 6 of this act and if that limit prevents the department marijuana regulatory agency from issuing a state license to all applicants every applicant who meet meets the requirements of subsection 3 of this section, (3) and whose marihuana establishment would be located in that municipality, the municipality shall decide among competing applications by a competitive process intended to select which applicants who are best suited to operate a marihuana establishment in compliance with this act. within the municipality.
(5) 5. All A state licenses are license is effective for 1 year, unless the department marijuana regulatory agency issues the state license for a longer term. A The marijuana regulatory agency shall renew a state license is renewed upon receipt of receiving a complete renewal application and a renewal fee from any a marihuana establishment in good standing.
(6) 6. The department marijuana regulatory agency shall begin accepting applications for marihuana establishments within 12 months after the effective date of this act. by December 6, 2019. Except as otherwise provided in this section, for 24 months after the department marijuana regulatory agency begins to receive accepting applications for marihuana establishments, the department may marijuana regulatory agency shall only accept applications for licensure: for from the following:
(a) For a class A marihuana grower or for a marihuana microbusiness, from persons an applicant who are residents is a resident of Michigan. ; for
(b) For a marihuana retailer, marihuana processor, class B marihuana grower, class C marihuana grower, or a marihuana secure transporter, from persons an applicant holding a state operating license pursuant to under the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801. ; and for
(c) For a marihuana safety compliance facility, from any applicant. One
(7) Beginning 1 year after the department marijuana regulatory agency begins to accept accepting applications pursuant to under this section, the department marijuana regulatory agency shall begin accepting applications from any applicant if the department marijuana regulatory agency determines that additional state licenses are necessary to minimize do any of the following:
(a) Minimize the illegal market for marihuana in this state. , to efficiently
(b) Efficiently meet the demand for marihuana. , or to provide
(c) Provide for reasonable access to marihuana in rural areas.
(8) 7. Information obtained from an applicant related to licensure under this act is exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
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 any of the following:
(i) Cultivating not more than the number of flowering marihuana plants authorized by the marihuana grower's state license. class; possessing,
(ii) Possessing, packaging, storing, or testing marihuana. ; acquiring
(iii) Acquiring marihuana seeds or seedlings from a person who is 21 years of age or older. ; selling
(iv) Selling or otherwise transferring, purchasing or otherwise obtaining, or transporting marihuana to or from a marihuana establishment. ; or receiving
(v) Receiving compensation for goods or services. ;
(b) For a marihuana processor, or an agent acting on behalf of a marihuana processor who is 21 years of age or older, possessing, any of the following:
(i) Possessing, processing, packaging, storing, or testing marihuana. ; selling
(ii) Selling or otherwise transferring, purchasing or otherwise obtaining, or transporting marihuana to or from a marihuana establishment. ; or receiving
(iii) Receiving compensation for goods or services. ;
(c) a 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 any of the following:
(i) Possessing or storing marihuana. ; transporting
(ii) Transporting marihuana to or from a marihuana establishment. ; or receiving
(iii) 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, any of the following:
(i) Testing, possessing, repackaging, or storing marihuana. ; transferring,
(ii) Transferring, obtaining, or transporting marihuana to or from a marihuana establishment. ; or receiving
(iii) 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, any of the following:
(i) Possessing, storing, or testing marihuana. ; selling
(ii) Selling or otherwise transferring, purchasing or otherwise obtaining, or transporting marihuana to or from a marihuana establishment. ; selling
(iii) Selling or otherwise transferring marihuana to a person an individual 21 years of age or older. ; or receiving
(iv) 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 any of the following:
(i) Cultivating not more than 150 450 marihuana plants, not more than 150 of which may be flowering marihuana plants. ; possessing,
(ii) Possessing, processing, packaging, storing, or testing marihuana from flowering marihuana plants cultivated on the marihuana microbusiness's premises. ; selling
(iii) Selling or otherwise transferring marihuana cultivated or processed on the marihuana microbusiness's premises to a person an individual 21 years of age or older. ; or receiving
(iv) Receiving compensation for goods or services.
(g) leasing Leasing or otherwise allowing the use of property owned, occupied, or managed for activities allowed under this act. ;
(h) enrolling Enrolling or employing a person an individual who engages in marihuana-related activities allowed under this act. ;
(i) possessing, Possessing, cultivating, processing, obtaining, transferring, or transporting industrial hemp. ; or
(j) providing Providing professional services to prospective or licensed marihuana establishments related to activity under this act.
(2) 2. A person acting as an An agent of a marihuana retailer acting on behalf of the marihuana retailer who sells or otherwise transfers marihuana or marihuana accessories to a person under an individual younger than 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 agent did both of the following:
(a) Reasonably verified that the recipient of the marihuana or marihuana accessories appeared to be 21 years of age or older by means of reviewing a government-issued photographic identification containing a date of birth. , and the person complied
(b) Complied with any applicable rules promulgated pursuant to under this act.
(3) 3. It is the public policy of this state that contracts related to the operation of marihuana establishments be enforceable.
