SENATE BILL No. 203

 

 

March 13, 2019, Introduced by Senators MACDONALD and LUCIDO and referred to the Committee   on Judiciary and Public Safety.

 

 

 

     A bill to amend 2016 PA 281, entitled

 

"Medical marihuana facilities licensing act,"

 

by amending section 102 (MCL 333.27102), as amended by 2018 PA 648.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 Applicant includes, 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.or for purposes of prior board approval of a transfer of

 

interest under section 406, and only for applications submitted on

 

or after January 1, 2019, a managerial employee of the applicant, a

 

person holding a direct or indirect ownership interest of more than

 

10% in the applicant, and the following for each type of applicant:

 

     (i) For an individual or sole proprietorship: the proprietor

 

and spouse.

 

     (ii) For a partnership and limited liability partnership: all

 

partners and their spouses. For a limited partnership and limited

 

liability limited partnership: all general and limited partners,

 

not including a limited partner holding a direct or indirect

 

ownership interest of 10% or less and who does not exercise control

 

over or participate in the management of the partnership, and their

 

spouses. For a limited liability company: all members and managers,

 

not including a member holding a direct or indirect ownership

 

interest of 10% or less and who does not exercise control over or

 

participate in the management of the company, and their spouses.

 

     (iii) For a privately held corporation: all corporate officers

 

or persons with equivalent titles and their spouses, all directors

 

and their spouses, and all stockholders, not including those

 

holding a direct or indirect ownership interest of 10% or less, and

 

their spouses.


     (iv) For a publicly held corporation: all corporate officers

 

or persons with equivalent titles and their spouses, all directors

 

and their spouses, and all stockholders, not including those

 

holding a direct or indirect ownership interest of 10% or less, and

 

their spouses.

 

     (v) For a multilevel ownership enterprise: any entity or

 

person that receives or has the right to receive more than 10% of

 

the gross or net profit from the enterprise during any full or

 

partial calendar or fiscal year.

 

     (vi) For a nonprofit corporation: all individuals and entities

 

with membership or shareholder rights in accordance with the

 

articles of incorporation or the bylaws and their spouses.

 

     (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) "Licensee" means a person holding a state operating


license.

 

     (k) "Marihuana" means that term as defined in section 7106 of

 

the public health code, 1978 PA 368, MCL 333.7106.

 

     (l) "Marihuana facility" means a location at which a licensee

 

is licensed to operate under this act.

 

     (m) "Marihuana plant" means any plant of the species Cannabis

 

sativa L. Marihuana plant does not include industrial hemp.

 

     (n) "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) "Marihuana tracking act" means the marihuana tracking act,

 

2016 PA 282, MCL 333.27901 to 333.27904.

 

     (p) "Michigan medical marihuana act" means the Michigan

 

medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430.

 

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

 

     (r) "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) "Person" means an individual, corporation, limited

 

liability company, partnership, limited partnership, limited

 

liability partnership, limited liability limited partnership,

 

trust, or other legal entity.


     (t) "Plant" means any living organism that produces its own

 

food through photosynthesis and has observable root formation or is

 

in growth material.

 

     (u) "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) "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 registered 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) "Registered primary caregiver" means a primary caregiver

 

who has been issued a current registry identification card under

 

the Michigan medical marihuana act.

 

     (x) "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) "Registry identification card" means that term as defined

 

in section 3 of the Michigan medical marihuana act, MCL 333.26423.

 

     (z) "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) "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) "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) "Seed" means the fertilized, ungerminated, matured ovule,

 

containing an embryo or rudimentary plant, of a marihuana plant

 

that is flowering.

 

     (dd) "Seedling" means a marihuana plant that has germinated

 

and has not flowered and is not harvestable.

 

     (ee) "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) "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) "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) "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.