Bill Text: MI SB0142 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Health; medical marihuana; state and local regulation of marihuana provisioning centers; provide for. Creates new act.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2015-02-18 - Referred To Committee On Judiciary [SB0142 Detail]
Download: Michigan-2015-SB0142-Introduced.html
SENATE BILL No. 142
February 18, 2015, Introduced by Senators KNEZEK, SHIRKEY, HUNE, HERTEL, GREGORY, ANANICH and KOWALL and referred to the Committee on Judiciary.
A bill to license and regulate medical marihuana provisioning
centers and safety compliance facilities; to provide for the powers
and duties of certain state and local governmental officers and
entities; to provide immunity for persons engaging in medical
marihuana-related activities in compliance with this act; to
prescribe penalties and sanctions and provide remedies; to create
an advisory panel; and to require the promulgation of rules.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"medical marihuana provisioning center regulation act".
Sec. 2. As used in this act:
(a) "Debilitating medical condition" means that term as
defined in section 3 of the Michigan medical marihuana act, MCL
333.26423.
(b) "Department" means the department of licensing and
regulatory affairs.
(c) "Excluded felony offense" means a felony involving illegal
drugs. Excluded felony offense does not include a conviction for
activity allowed under the Michigan medical marihuana act or this
act, even if the activity occurred before the enactment of this act
or the Michigan medical marihuana act.
(d) "Marihuana" means that term as defined in section 3 of the
Michigan medical marihuana act, MCL 333.26423.
(e) "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.
(f) "Medical marihuana" means marihuana for medical use as
that term is defined in section 3 of the Michigan medical marihuana
act, MCL 333.26423.
(g) "Medical marihuana provisioning center" or "provisioning
center" means a commercial entity located in this state that
acquires, possesses, manufactures, delivers, transfers, or
transports medical marihuana and sells, supplies, or provides
medical marihuana to registered qualifying patients, directly or
through the patients' registered primary caregivers. Provisioning
center includes any commercial property where medical marihuana is
sold 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 medical marihuana registration process in accordance
with the Michigan medical marihuana act is not a provisioning
center for purposes of this act.
(h) "Michigan medical marihuana act" means the Michigan
medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430.
(i) "Municipality" means a city, township, or village.
(j) "Paraphernalia" means drug paraphernalia as defined in
section 7451 of the public health code, 1978 PA 368, MCL 333.7451,
that is or may be used in association with medical marihuana.
(k) "Provisioning center agent" means a principal officer,
board member, employee, or operator of a provisioning center, or
any other individual acting as an agent of a provisioning center.
(l) "Registered primary caregiver" means a person who has a
valid, unexpired registry identification card as a primary
caregiver or who satisfies the criteria listed in section 9(b) or
(c) of the Michigan medical marihuana act, MCL 333.26429, and
possesses the documentation that constitutes a valid registry
identification card under that section.
(m) "Registered qualifying patient" means a person who meets
any of the following requirements:
(i) Has a valid, unexpired registry identification card as a
qualifying patient.
(ii) Satisfies the criteria listed in section 9(b) or (c) of
the Michigan medical marihuana act, MCL 333.26429, and possesses
the documentation that constitutes a valid registry identification
card under that section.
(n) "Registry identification card" means that term as defined
in section 3 of the Michigan medical marihuana act, MCL 333.26423.
(o) "Safety compliance facility" means an entity that tests
for contaminants in marihuana produced for medical use.
(p) "Safety compliance facility agent" means a principal
officer, board member, employee, operator of a safety compliance
facility, or any other individual acting as an agent of a safety
compliance facility.
(q) "State operating license" means a license to operate as a
provisioning center or safety compliance facility that is issued by
the department after approving an application that includes an
affirmative recommendation by the municipality in which the
provisioning center or safety compliance facility is located.
(r) "Usable marihuana" means the dried leaves, flowers, plant
resin, or extract of the marihuana plant and any mixture or
preparation thereof, but does not include the seeds, stalks, or
roots of the plant or any inactive substance used as a delivery
medium for usable marihuana.
(s) "Visiting qualifying patient" means a patient who is not a
resident of this state or who has been a resident of this state for
less than 30 days and who possesses a registry identification card,
or its equivalent, that was issued under the laws of another state,
district, territory, commonwealth, or insular possession of the
United States and that allows the use of medical marihuana by the
patient.
Sec. 3. (1) Except as otherwise provided in this act, if a
provisioning center has been granted a state operating license and
is operating in compliance with this act, rules implementing this
act, and any municipal ordinance described in section 5(1), the
provisioning center and the provisioning center agents are not
subject to any of the following for engaging in activities
described in subsection (2):
(a) Criminal penalties under state law or other local
ordinances.
(b) State or local civil prosecution.
(c) Search or inspection, except for an inspection authorized
by state police, the municipality, or the department.
(d) Seizure.
(e) Any sanction, including disciplinary action or denial of a
right or privilege, by a business or occupational or professional
licensing board or bureau.
(2) Activities that are exempt under subsection (1) include
all of the following:
(a) Purchasing, receiving, selling, or transferring marihuana
from or to registered qualifying patients, registered primary
caregivers, or provisioning centers.
(b) Purchasing or receiving medical marihuana from 1 or more
other provisioning centers.
(c) Purchasing or receiving medical marihuana from a
registered qualifying patient or a registered primary caregiver if
the amount purchased does not exceed the registered qualifying
patient's or registered primary caregiver's medical marihuana
possession limits under the Michigan medical marihuana act.
(d) Processing medical marihuana.
(e) Possessing or manufacturing paraphernalia.
(f) Possessing medical marihuana processed by the provisioning
center or obtained pursuant to subdivision (a) or (b) on the
provisioning center premises or while the medical marihuana is
being transported pursuant to this section.
(g) Manufacturing nonsmokable forms of medical marihuana.
(h) Transporting medical marihuana between the provisioning
center and another provisioning center or a safety compliance
facility.
(i) Transporting or delivering medical marihuana or
paraphernalia to the residence of a registered qualifying patient
or a registered primary caregiver.
(j) Supplying, selling, providing, transferring, or delivering
medical marihuana, paraphernalia, or related supplies and
educational materials in compliance with the procedures and
limitations detailed in section 7(11) to (13) and the testing and
labeling requirements in section 7(4).
Sec. 4. (1) Except as otherwise provided in this act, if a
safety compliance facility has been granted a state operating
license and is operating in compliance with this act, rules
promulgated under this act, and any municipal ordinance described
in section 5(1), the safety compliance facility and the safety
compliance facility agents are not subject to any of the following
for engaging in activities described in subsection (2):
(a) Criminal penalties under state law or other local
ordinances.
(b) State or local civil prosecution.
(c) Search or inspection, except for an inspection authorized
by state police, the municipality, or the department.
(d) Seizure.
(e) Any sanction, including disciplinary action or denial of a
right or privilege, by a business or occupational or professional
licensing board or bureau.
(2) Activities that are exempt from regulation and sanction
under subsection (1) include all of the following:
(a) Acquiring or possessing medical marihuana obtained from
registered qualifying patients, registered primary caregivers, or
provisioning centers.
(b) Transporting medical marihuana to or from a registered
qualifying patient, registered primary caregiver, or provisioning
center.
(c) Possessing medical marihuana on the safety compliance
facility's premises for testing, if the medical marihuana was
obtained pursuant to subdivision (a).
(d) Receiving compensation for actions permitted pursuant to
this section and municipal law.
Sec. 5. A municipality may enact and enforce an ordinance to
impose additional local requirements on provisioning centers or
safety compliance facilities, including, but not limited to, zoning
restrictions and caps on the number of provisioning centers in the
municipality. The municipality may adopt an ordinance under this
subsection, designate a violation of the ordinance as a municipal
civil infraction, and provide a civil fine for the violation. A
municipality may charge a fee for a provisioning center or safety
compliance facility.
Sec. 6. This act does not limit the medical purpose defense
provided in section 8 of the Michigan medical marihuana act, 2008
IL 1, MCL 333.26428, to any prosecution involving marihuana.
Sec. 7. (1) A provisioning center or a safety compliance
facility shall not be located within 1,000 feet, measured from
property line to property line, of the property line of a
preexisting primary or secondary school.
(2) A provisioning center shall not share office space with a
physician and shall not conduct any other business at or in
association with the provisioning center.
(3) The premises of a provisioning center shall have a
security alarm system that is enabled when a provisioning center
agent is not present.
(4) A provisioning center shall not sell, transfer, or
provide a marihuana-infused product unless it has been tested by
a safety compliance facility and is enclosed in a container that
bears a securely affixed label displaying all of the following
information:
(a) The name of the registered qualifying patient or
visiting qualifying patient for whom the marihuana-infused
product is intended.
(b) Certification that the product has been tested by a
licensed safety compliance facility as required in section 10
and does not contain unsafe levels of mold, mildew, fungi, or
pesticides.
(c) The total weight of the marihuana-infused product and the
weight of the usable marihuana in the container. The weight of
usable marihuana in the container shall be calculated as the same
fraction of the total weight of the usable marihuana that was used
in preparing the product as the fraction that the marihuana-infused
product in the container is of the total amount of marihuana-
infused product made from the usable marihuana. If the provisioning
center does not prepare the marihuana-infused product, it shall
obtain documentation from the preparer with the information
necessary to determine the usable marihuana content.
(d) The words "WARNING: This product contains marihuana. For a
registered qualifying patient's medical use only." or substantially
similar text.
(5) A provisioning center shall not operate unless each
licensee and provisioning center agent is a resident of this state
and has been a resident for the preceding 2 years.
(6) A provisioning center or safety compliance facility shall
not knowingly employ an individual who has been convicted of an
excluded felony offense during the immediately preceding 10-year
period or who is under 21 years of age or who is not either a
citizen of the United States or authorized to work under the United
States immigration and naturalization law. A provisioning center or
safety compliance facility shall perform a background check on an
individual before he or she is offered employment to verify that he
or she has not been convicted of an excluded felony offense during
the immediately preceding 10-year period.
(7) A provisioning center shall maintain records listing each
individual employed by the provisioning center, including the
beginning employment date and the date a background check was
performed.
(8) A provisioning center shall not allow on-site consumption
of medical marihuana, except that a provisioning center agent or
employee who is a registered qualifying patient may be permitted to
use a medical marihuana-infused topical product.
(9) A provisioning center shall not provide usable marihuana
or marihuana–infused products in solid form, gaseous form, or
liquid form to an individual if the total amount provided to the
individual in any 10-day period by provisioning centers would
exceed the amount for which the individual is granted immunity for
possession under the Michigan medical marihuana act.
(10) A provisioning center shall ensure compliance with the
limit under subsection (9) by maintaining internal, confidential
records that shall be entered into a statewide database when that
database becomes operational and shall specify the amount of
medical marihuana provided to each registered qualifying patient
and registered primary caregiver and whether it was provided to the
registered primary caregiver or directly to the registered
qualifying patient. Each record shall include the date and time the
medical marihuana was provided. A provisioning center shall
maintain each record for 6 months. For any registered qualifying
patient or registered qualifying caregiver in possession of a
registry identification card, a record shall be kept using the
patient's or caregiver's registry identification card number
instead of the patient's or caregiver's name. Confidential records
entered into the statewide database under this act are subject to
reasonable inspection by a department employee authorized to
inspect provisioning centers to ensure compliance with this act,
but may be stored off-site. Confidential records entered into the
statewide database under this act are exempt from disclosure under
the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
Except as otherwise required by a court order, a provisioning
center and the department shall not disclose confidential records
to any person other than a department employee performing an
inspection in compliance with this subsection or to a provisioning
center agent. A provisioning center shall also maintain records of
the transfers of marihuana and marihuana-infused product that it
makes to or receives from another provisioning center, including
the dates and amounts, and identifying the provisioning centers.
The record of a provisioning center to provisioning center transfer
shall be maintained and entered into the statewide database in the
same manner as other records under this subsection. Except as
otherwise indicated in this subsection, all provisioning center
records shall be made available to the department upon request,
including both paper and electronically stored records.
(11) A provisioning center agent shall not provide, transfer,
or sell medical marihuana to an individual knowing that the
individual is not a registered qualifying patient, registered
primary caregiver, or provisioning center agent working on behalf
of a provisioning center that is not prohibited from operating or
obtaining medical marihuana from other provisioning centers under a
municipal ordinance.
(12) Before a provisioning center provides or sells an
individual medical marihuana, in addition to complying with
subsection (13), a provisioning center agent shall do 1 of the
following:
(a) Verify that the individual requesting medical marihuana
holds what the provisioning center agent reasonably believes to be
a valid, unexpired registry identification card.
(b) If the individual requesting medical marihuana indicates
that he or she is a provisioning center agent, make a diligent,
good-faith effort to verify that the individual is a provisioning
center agent for a provisioning center that holds a state operating
license.
(13) Before medical marihuana is provided or sold from a
provisioning center, a provisioning center agent shall make a
diligent, good-faith effort to determine that the individual named
in the registry identification card or other documentation
submitted under subsection (12) is the individual seeking to obtain
medical marihuana, by examining what the provisioning center agent
reasonably believes to be a valid government-issued photo
identification.
(14) An individual who is under 21 years of age or who has
been convicted of an excluded felony offense during the immediately
preceding 10-year period shall not serve as a provisioning center
agent or safety compliance facility agent.
(15) A provisioning center agent shall not, for compensation,
refer an individual to a physician.
(16) A provisioning center or safety compliance facility shall
not permit a physician to advertise in a provisioning center or
safety compliance facility or to hold any financial interest in or
receive any compensation from the provisioning center or safety
compliance facility.
(17) A provisioning center agent or safety compliance facility
agent shall not transport or possess medical marihuana on behalf of
the provisioning center or safety compliance facility in or upon a
motor vehicle or any self-propelled vehicle designed for land
travel unless all of the following conditions are met:
(a) The agent possesses a document signed and dated by a
manager or operator of the provisioning center or safety compliance
facility that employs the agent, stating the agent's name, the date
the medical marihuana is transported, the approximate amount of
medical marihuana transported, and the name of the provisioning
center or safety compliance facility from which the medical
marihuana is transported.
(b) The medical marihuana is located in 1 or more of the
following:
(i) An enclosed locked container, such as a safe or briefcase.
(ii) The trunk of the vehicle.
(iii) A space that is inaccessible from the passenger
compartment of the vehicle.
Sec. 8. (1) Except as otherwise provided in this act, a
registered qualifying patient, or registered primary caregiver who
supplies, sells, transfers, or delivers marihuana to a provisioning
center that has a state operating license and operates in
compliance with this act is not subject to any of the following for
engaging in that activity:
(a) Criminal penalties under state law or local ordinances.
(b) State or local civil prosecution.
(c) Search or inspection, except for an inspection authorized
by state police or the municipality.
(d) Seizure.
(e) Any sanction, including disciplinary action or denial of a
right or privilege, by a business or occupational or professional
licensing board or bureau.
(2) Except as otherwise provided in this act, a registered
qualifying patient is not subject to any of the inspections or
sanctions listed in subsection (1)(a) to (e) for any of the
following:
(a) Purchasing or acquiring usable marihuana or marihuana-
infused products in solid form, gaseous form, or liquid form from 1
or more provisioning centers if the amount purchased or acquired in
any 10-day period is not more than the amount for which the
individual is granted immunity for possession under the Michigan
medical marihuana act.
(b) Supplying, selling, transferring, or delivering medical
marihuana to a provisioning center that has a state operating
license if all of the following requirements are met:
(i) The medical marihuana was produced by the registered
qualifying patient or registered primary caregiver.
(ii) The amount of medical marihuana transferred does not
exceed the amount of medical marihuana the registered qualifying
patient is allowed to possess under the Michigan medical marihuana
act.
(3) Except as otherwise provided in this act, a registered
primary caregiver is not subject to any of the inspections or
sanctions listed in subsection (1)(a) to (e) for any of the
following:
(a) Purchasing or acquiring usable marihuana or marihuana-
infused products in solid form, gaseous form, or liquid form from 1
or more provisioning centers if the amount purchased or acquired in
any 10-day period is not more than the amount for which the
individual is granted immunity for possession under the Michigan
medical marihuana act.
(b) Supplying, selling, transferring, or delivering medical
marihuana to a provisioning center that is registered, licensed, or
otherwise allowed by the municipality in which it operates if all
of the following requirements are met:
(i) The medical marihuana was produced by the registered
primary caregiver and is excess medical marihuana above the amount
necessary to satisfy the needs of the registered qualifying
patients the primary caregiver is designated to serve.
(ii) The amount of medical marihuana transferred does not
exceed the amount of medical marihuana the registered primary
caregiver is allowed to possess under the Michigan medical
marihuana act.
Sec. 9. (1) The department shall not issue a state operating
license to an entity as a safety compliance facility and a safety
compliance facility shall not operate unless it is able to
accurately determine whether any of the following are present in
marihuana-infused products that are sold or may be sold at medical
marihuana provisioning centers in this state:
(a) Mold, mildew, or fungi.
(b) Pesticides.
(2) A safety compliance center is not exempt under section 4
for activities associated with handing, testing, or analyzing
marihuana unless it meets all of the following conditions:
(a) After October 1, 2015, the entity is licensed as a safety
compliance facility by this state.
(b) A person with a direct or indirect interest in the entity
does not have a direct or indirect financial interest in a
provisioning center, marihuana producer, certifying physician, or
any other entity that may financially benefit from the production,
manufacture, dispensing, sale, purchase, or use of marihuana.
(c) The entity employs at least 1 individual who has earned a
bachelor's degree or higher in the chemical or biological sciences
and has a minimum of 1 year of postgraduate laboratory experience
to oversee and be responsible for laboratory testing.
(d) The entity is accredited by a private laboratory
accreditation service.
Sec. 10. (1) Beginning October 1, 2015, a provisioning center
shall not distribute or sell any marihuana-infused product unless
the product has been tested for mold, mildew, fungi, and pesticides
by a licensed safety compliance facility and does not contain
unsafe levels of mold, mildew, fungi, or pesticides. A provisioning
center shall make the safety compliance facility test results
available upon request to a qualifying patient, a primary
caregiver, the municipality in which the provisioning center is
located, or a physician who has certified a qualifying patient.
(2) If a medical marihuana provisioning center elects to
manufacture and distribute a marihuana-infused product, the medical
marihuana provisioning center must comply with all of the
following:
(a) Keep the grounds of the provisioning center under the
control of the operator free from improperly stored equipment,
litter, waste, refuse, and uncut weeds or grass and ensure that
floors, walls, ceilings, and equipment are kept clean and in good
repair.
(b) Keep food preparation areas separated from poisons,
undesirable microorganisms, chemicals, filth, or other extraneous
material by partition, location, or other effective means.
Marihuana is not prohibited in food preparation areas under this
subdivision.
(c) Provide adequate lighting in all areas where food or food
ingredients are examined, processed, or stored, and in hand washing
areas, toilet rooms, and places where equipment or utensils are
cleaned.
(d) Provide adequate ventilation or control equipment to
minimize odors and noxious fumes, dust, or vapors, including steam,
in areas where they may contaminate food.
(e) Ensure that all provisioning center equipment and utensils
are suitable for their intended use and are designed and
constructed with material and workmanship that allows them to be
cleanable and properly maintained.
(f) Ensure that the provisioning center is properly equipped
with adequate sanitary facilities and accommodations.
(g) Ensure that the provisioning center has a water supply
that is sufficient for the operations intended and is derived from
an approved source.
(h) Ensure that all sewage and liquid waste is disposed of in
a public or municipal sewerage system, or, if an adequate public
disposal system is not available, in an approved septic tank system
or by another acceptable method that does not create a nuisance,
insanitary condition, or public health hazard.
(i) Provide employees with adequate, completely enclosed
toilet rooms and conveniently located associated hand washing
facilities that are maintained in a sanitary condition and kept in
good repair at all times.
(j) Provide adequate and convenient facilities for hand
washing that are furnished with hot and cold or tempered running
water, effective hand cleaning and sanitizing preparations,
disposable sanitary towel service or suitable drying devices, and
easily cleanable waste receptacles.
(k) Provide for conveying, storing, and disposal of rubbish
and offal in a manner that minimizes odor, prevents waste from
becoming an attractant or a harbor or breeding place for vermin,
and prevents contamination of food, food contact surfaces, ground
surfaces, and water supplies.
(l) Maintain the building, fixtures, and other physical
facilities of the provisioning center in good repair and in
sanitary condition.
(m) Prohibit live birds or other animals in the provisioning
center, except that a guide dog accompanying a blind person is
permitted in selling areas.
(n) Clean all utensils and product contact surfaces of
equipment as frequently as necessary to prevent contamination of
food and food products and all nonproduct contact surfaces of
equipment used in food preparation areas as frequently as necessary
to minimize accumulation of dust, dirt, food particles, and other
debris.
(o) Conduct all operations in receiving, inspecting,
transporting, packaging, segregating, preparing, processing, and
food storing areas in accordance with good sanitation principles
and take all reasonable precautions to ensure that production
procedures do not contribute contamination, such as filth, harmful
chemicals, undesirable microorganisms, or any other objectionable
material, to the processed product.
(p) Conduct all food processing, packaging, storage, and
transporting of food under conditions and controls that minimize
the potential for undesirable bacterial or other microbiological
growth, toxin formation, or deterioration or contamination of the
processed product, product ingredients, or product containers.
(q) Ensure that all food and drink is clean and wholesome, and
manufactured, handled, stored, prepared, transported, offered for
sale, and sold in a manner that keeps it safe for human
consumption.
(r) Not allow an individual who is affected by a disease in a
communicable form, a carrier of such a disease, or afflicted with
boils, sores, infected wounds, or other abnormal sources of
microbiological contamination to work in the provisioning center in
any capacity in which there is a reasonable possibility that food
or food ingredients will become contaminated or that the disease
will be transmitted to other individuals.
(s) Require all individuals working in direct contact with
food preparation, food ingredients, or surfaces coming into contact
with food ingredients to do all of the following:
(i) Wear clean outer garments, maintain a high degree of
personal cleanliness, and conform to hygienic practices while on
duty to the extent necessary to prevent contamination of food
products.
(ii) Before starting work, after each absence from the work
station, and at any other time when hands may have become soiled or
contaminated, wash their hands thoroughly in an adequate hand
washing facility and sanitize their hands if necessary to prevent
contamination.
(iii) Remove any jewelry that cannot be adequately sanitized and
all insecure jewelry from hands when food is manipulated by hand.
(iv) Maintain any gloves used in food handling in an intact,
clean, and sanitary condition and use only gloves made of an
impermeable material, except when that usage would be inappropriate
or incompatible with the work involved.
(v) Wear effective hairnets, headbands, or caps to constrain
the hair properly.
(vi) Refrain from storing clothing or other personal belongings
and from eating, drinking, or using tobacco in any form in areas
where food or food ingredients are exposed, or in areas used for
washing equipment or utensils.
(vii) Take any other necessary precautions to prevent
contamination of foods with microorganisms or other foreign
substances, including, but not limited to, perspiration, hair,
cosmetics, tobacco, chemicals, and medicants.
(3) Subsection (2) does not prohibit a municipality from
imposing additional regulations on medical marihuana provisioning
centers that manufacture and distribute a marihuana-infused
product.
(4) The local county health department shall inspect a
provisioning center at least annually for compliance with
subsections (2) and (3). The provisioning center shall pay for all
costs associated with the inspection under this subsection.
Sec. 11. (1) Beginning July 1, 2015, a person may submit an
application to the department for a license to operate as a
provisioning center or safety compliance facility. The department
may issue a state operating license as provided in this act upon
receipt and examination of an application that includes an
affirmative recommendation by the municipality in which the
provisioning center or safety compliance facility will be located.
The department may require that the application be on a form
designated by the department and accompanied by a registration fee
established by rule and that the applicant submit his or her own
criminal background check.
(2) The department may issue a state operating license if, in
the department's discretion, issuing the license is in the best
interests of the state. In making the determination, the department
shall consider all of the following:
(a) The applicant's character, including any history of
criminal or civil violations of law.
(b) Information concerning business skills and experience
related to the potential for success in operating the provisioning
center or safety compliance facility.
(c) The feasibility of the business plan and financial
stability of and resources available to the applicant to conduct
business authorized by the state operating license in compliance
with this act.
(3) The department shall not grant a state operating license
unless the applicant is over 21 years of age, has been a resident
of this state for the preceding 2 years, and is a United States
citizen or is authorized to work in the United States in conformity
with United States immigration law.
(4) Unless the department notifies the applicant within 30
days after receipt that the application is incomplete, describing
the deficiency and requesting the additional information, the
department shall approve or deny an application within 90 days
after receiving a completed application. The 90-day period is
tolled for the following periods under the following circumstances:
(a) If the commission sends notice of a deficiency in the
application, until the date all of the requested information is
received.
(b) For the time required to complete actions required by a
person other than the applicant or the commission, including, but
not limited to, completion of construction or renovation of the
licensed premises, criminal history check, financial or court
record checks, or other actions required by this act or rule.
(5) If the department denies an application, it shall give the
reasons for the denial. The applicant has no right to appeal the
denial and may not submit another application for 1 year after the
date of the denial.
(6) A state operating license expires on January 1 of the year
following the year it is issued. If the licensee submits an
application for renewal of a state operating license between 30 to
45 days before the license expires, the license is renewed, unless
the department denies the application for renewal because of a
change in circumstances that indicates that the licensee no longer
meets the requirements for licensure. The department may require
that the application for renewal be on a form designated by the
department.
(7) A transfer of a state operating license is not valid
unless the licensee requests and receives approval by the
department and the municipality in which the provisioning center or
safety compliance facility is located. The department shall treat
an application for a transfer as if it were a new application for
license by the transferee.
(8) The department may promulgate rules to implement the
licensing, renewal, and transfer approval process.
Sec. 12. (1) The department, upon due notice and proper
hearing, may suspend or revoke any state operating license for a
violation of this act or the rules promulgated under this act or
for violation of an applicable local ordinance. The department
may assess an administrative fine against a provisioning center
of not more than $2,000.00 for each sale in violation of this act
or a rule promulgated under this act and not more than $1,000.00
for any other violation of this act or a rule promulgated under
this act. The department may assess an administrative fine
against a safety compliance center of not more than $10,000.00
for knowingly providing false or fraudulent test results for
mold, mildew, fungi, or pesticides. An administrative fine shall
be in lieu of or in addition to revocation of the license. A
provisioning center or safety compliance center shall pay an
administrative fine to the department, which shall deposit that
fine with the state treasurer in the state general fund.
(2) The department may promulgate rules to implement the
process of revocation or suspension of a state operating
license, assessing administrative fines, and conducting appeals
as necessary to provide for due process.
Sec. 13. (1) A provisioning center that violates section 7(1)
or (2) is responsible for a state civil infraction and may be
ordered to pay a civil fine of not more than $5,000.00. A
municipality in which the provisioning center or safety compliance
facility operates in violation of section 7(1) or (2) may petition
the court for an injunction to close the provisioning center or
safety compliance facility.
(2) A person who violates section 7(3) to (10), (15), or (16)
is responsible for a state civil infraction and may be ordered to
pay a civil fine of not more than $1,000.00.
(3) A person who transfers medical marihuana in violation of
section 7(11) to (13) or who works in violation of section 7(14) is
not exempt under section 3 or 4 from arrest, prosecution, or
criminal or other penalties.
(4) A person who violates section 7(17) is guilty of a
misdemeanor punishable by imprisonment for not more than 93 days or
a fine of not more than $500.00, or both.
(5) The sanctions in this section apply beginning July 1,
2015.
Sec. 14. The department shall create and maintain a statewide
confidential database in compliance with section 7(10)
confidentiality requirements to ensure compliance with the time and
quantity limitations on transfers set forth in section 7(9). Each
provisioning center shall submit the records required under section
7(10) to the department for entry into the statewide database
established under this section. The department shall ensure that
each provisioning center has access to the database to allow
provisioning center agents to maintain proper statewide record
keeping to assure that transfers of marihuana and marihuana-infused
products are within the maximums permitted under this act.
Sec. 15. (1) The provisioning center regulation panel is
created within the department.
(2) The panel shall consist of 17 members, consisting of the
director of state police, or his or her designee, the president of
the Michigan sheriffs association, or his or her designee, the
president of the Michigan association of chiefs of police, or his
or her designee, and the following appointed by the governor:
(a) 2 registered qualifying patients.
(b) 1 physician.
(c) 2 registered primary caregivers.
(d) 2 representatives of provisioning centers.
(e) 2 representatives of safety compliance facilities.
(f) 2 representatives of municipalities, 1 nominated by the
Michigan municipal league and 1 nominated by the Michigan township
association.
(g) 1 representative of the department.
(h) 1 representative of the prosecuting attorneys association
of Michigan.
(i) 1 representative of the general public.
(3) The members first appointed to the panel shall be
appointed within 3 months after the effective date of this act and
shall serve at the pleasure of the governor. Appointed members of
the panel shall serve for terms of 2 years or until a successor is
appointed, whichever is later.
(4) If a vacancy occurs on the panel, the governor shall make
an appointment for the unexpired term in the same manner as the
original appointment.
(5) The first meeting of the panel shall be called by a
representative of the department within 1 month after the panel is
appointed. At the first meeting, the panel shall elect from among
its members a chairperson and any other officers it considers
necessary or appropriate. After the first meeting, the panel shall
meet at least 2 times each year, or more frequently at the call of
the chairperson.
(6) A majority of the members of the panel constitute a quorum
for the transaction of business. A majority of the members present
and serving are required for official action of the panel.
(7) The business that the panel performs shall be conducted at
a public meeting held in compliance with the open meetings act,
1976 PA 267, MCL 15.261 to 15.275.
(8) A writing prepared, owned, used, in the possession of, or
retained by the panel in the performance of an official function is
subject to the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246.
(9) Members of the panel shall serve without compensation.
However, members of the panel may be reimbursed for their actual
and necessary expenses incurred in the performance of their
official duties as members of the panel.
(10) The panel shall make recommendations to the department
concerning promulgation of rules and, as requested by the
department, the administration of this act.
(11) State departments and agencies shall cooperate with the
panel and, upon request, provide it with meeting space and other
necessary resources to assist it in the performance of its duties.
Sec. 16. The department may require fees, as necessary, from
licensees and applicants for licenses to carry out its duties under
this act.
Sec. 17. Not later than October 1, 2015, the department shall
promulgate rules or emergency rules pursuant to the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. The
department shall consult with the advisory panel after it is
established under section 15, but has the ultimate discretion as to
the rules implementing this act that will be submitted for
processing. The rules shall address the manner in which
municipalities, provisioning centers, and safety compliance
facilities engage in the following:
(a) Labeling marihuana and marihuana-infused products.
(b) Packaging marihuana and marihuana-infused products.
(c) Testing marihuana-infused products.
(d) Submitting and maintaining database records.
(e) Advertising marihuana sales.
(f) Transactions with visiting qualifying patients.
Sec. 18. (1) This act does not require the violation of
federal law and does not give immunity from prosecution under
federal law.
(2) This act does not prevent federal enforcement of federal
law.
(3) Sections 3, 4, and 10 do not exempt a provisioning
center or its agents, safety compliance facility or its agents,
registered qualifying patient, or registered primary caregiver
from criminal penalties or civil prosecution under a law of
general application that would apply even if medical marihuana
or paraphernalia were not involved.
(4) A provisioning center or safety compliance facility is
not exempt from criminal or civil prosecution or sanctions for
cultivating marihuana.
Enacting section 1. This act takes effect April 1, 2015.
Enacting section 2. The legislature finds that the
necessity for access to safe sources of marihuana for medical
use and the immediate need to establish provisioning centers and
safety compliance facilities that operate under defined rules
establish the need to preserve the public health, safety, or
welfare sufficient to support the promulgation of emergency
rules.
