Bill Text: MI HB6380 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Marihuana; facilities; industrial hemp; exclude from definition of marihuana plant and require the department to promulgate certain rules. Amends secs. 102 & 206 of 2016 PA 281 (MCL 333.27102 & 333.27206).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-12-31 - Assigned Pa 648'18 With Immediate Effect [HB6380 Detail]
Download: Michigan-2017-HB6380-Engrossed.html
HB-6380, As Passed Senate, December 21, 2018
SUBSTITUTE FOR
HOUSE BILL NO. 6380
A bill to amend 2016 PA 281, entitled
"Medical marihuana facilities licensing act,"
by amending the title and sections 102, 206, 502, and 505 (MCL
333.27102, 333.27206, 333.27502, and 333.27505), as amended by 2018
PA 10.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to license and regulate medical marihuana growers,
processors, provisioning centers, secure transporters, and safety
compliance facilities; to allow certain licensees to process, test,
or sell industrial hemp; to provide for the powers and duties of
certain state and local governmental officers and entities; to
create a medical marihuana licensing board; to provide for
interaction with the statewide monitoring system for commercial
marihuana transactions; to create an advisory panel; to provide
immunity from prosecution for marihuana-related offenses for
persons engaging in certain activities in compliance with this act;
to prescribe civil fines and sanctions and provide remedies; to
provide for forfeiture of contraband; to provide for taxes, fees,
and assessments; and to require the promulgation of rules.
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) "Industrial hemp" means that term as defined in section
7106 of the public health code, 1978 PA 368, MCL 333.7106.
(i) "Industrial hemp research and development act" means the
industrial hemp research and development act, 2014 PA 547.
(j) (h)
"Licensee" means a person
holding a state operating
license.
(k) (i)
"Marihuana" means that
term as defined in section 7106
of the public health code, 1978 PA 368, MCL 333.7106.
(l) (j)
"Marihuana facility"
means a location at which a
licensee is licensed to operate under this act.
(m) (k)
"Marihuana plant" means
any plant of the species
Cannabis sativa L. Marihuana plant does not include industrial
hemp.
(n) (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.
(o) (m)
"Marihuana tracking act"
means the marihuana tracking
act, 2016 PA 282, MCL 333.27901 to 333.27904.
(p) (n)
"Michigan medical marihuana
act" means the Michigan
medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430.
(q) (o)
"Municipality" means a
city, township, or village.
(r) (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.
(s) (q)
"Person" means an
individual, corporation, limited
liability company, partnership, limited partnership, limited
liability partnership, limited liability limited partnership,
trust, or other legal entity.
(t) (r)
"Plant" means any living
organism that produces its
own food through photosynthesis and has observable root formation
or is in growth material.
(u) (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.
(v) (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.
(w) (u)
"Registered primary
caregiver" means a primary
caregiver who has been issued a current registry identification
card under the Michigan medical marihuana act.
(x) (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.
(y) (w)
"Registry identification
card" means that term as
defined in section 3 of the Michigan medical marihuana act, MCL
333.26423.
(z) (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.
(aa) (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.
(bb) (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.
(cc) (aa)
"Seed" means the
fertilized, ungerminated, matured
ovule, containing an embryo or rudimentary plant, of a marihuana
plant that is flowering.
(dd) (bb) "Seedling" means a marihuana plant that
has
germinated and has not flowered and is not harvestable.
(ee) (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.
(ff) (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.
(gg) (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.
(hh) (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.
Sec. 502. (1) A processor license authorizes purchase of
marihuana only from a grower and sale of marihuana-infused products
or marihuana only to a provisioning center or another processor.
(2) Except as otherwise provided in section 505 and this
subsection, a processor license authorizes the processor to
transfer marihuana only by means of a secure transporter. A
processor license authorizes a processor to transfer marihuana
without using a secure transporter to a grower or provisioning
center if both of the following are met:
(a) The grower or provisioning center occupies the same
location as the processor and the marihuana is transferred using
only private real property without accessing public roadways.
(b) The processor enters each transfer into the statewide
monitoring system.
(3) To be eligible for a processor license, the applicant and
each investor in the processor must not have an interest in a
secure transporter or safety compliance facility.
(4) Until December 31, 2018, for a period of 30 days after the
issuance of a processor license and in accord with rules, a
processor may transfer any of the following that are lawfully
possessed by an individual formerly registered as a primary
caregiver who is an active employee of the processor:
(a) Marihuana plants.
(b) Usable marihuana.
(5) A processor shall comply with all of the following:
(a) Until December 31, 2021, have, or have as an active
employee an individual who has, a minimum of 2 years' experience as
a registered primary caregiver.
(b) While holding a license as a processor, not be a
registered primary caregiver and not employ an individual who is
simultaneously a registered primary caregiver.
(c) Enter all transactions, current inventory, and other
information into the statewide monitoring system as required in
this act, rules, and the marihuana tracking act.
(6) This act does not prohibit a processor from handling,
processing, marketing, or brokering, as those terms are defined in
section 2 of the industrial hemp research and development act, MCL
286.842, industrial hemp.
Sec. 505. (1) In addition to transfer and testing authorized
in section 203, a safety compliance facility license authorizes the
safety compliance facility to do all of the following without using
a secure transporter:
(a) Take marihuana from, test marihuana for, and return
marihuana to only a marihuana facility.
(b) Collect a random sample of marihuana at the marihuana
facility of a grower, processor, or provisioning center for
testing.
(2) A safety compliance facility must be accredited by an
entity approved by the board by 1 year after the date the license
is issued or have previously provided drug testing services to this
state or this state's court system and be a vendor in good standing
in regard to those services. The board may grant a variance from
this requirement upon a finding that the variance is necessary to
protect and preserve the public health, safety, or welfare.
(3) To be eligible for a safety compliance facility license,
the applicant and each investor with any interest in the safety
compliance facility must not have an interest in a grower, secure
transporter, processor, or provisioning center.
(4) A safety compliance facility shall comply with all of the
following:
(a) Perform tests to certify that marihuana is reasonably free
of chemical residues such as fungicides and insecticides.
(b) Use validated test methods to determine
tetrahydrocannabinol, tetrahydrocannabinol acid, cannabidiol, and
cannabidiol acid levels.
(c) Perform tests that determine whether marihuana complies
with the standards the board establishes for microbial and
mycotoxin contents.
(d) Perform other tests necessary to determine compliance with
any other good manufacturing practices as prescribed in rules.
(e) Enter all transactions, current inventory, and other
information into the statewide monitoring system as required in
this act, rules, and the marihuana tracking act.
(f) Have a secured laboratory space that cannot be accessed by
the general public.
(g) Retain and employ at least 1 staff member with a relevant
advanced degree in a medical or laboratory science.
(5) This act does not prohibit a safety compliance facility
from taking or receiving industrial hemp for testing purposes and
testing the industrial hemp pursuant to the industrial hemp
research and development act.
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.
