Bill Text: MI SB0203 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: Medical marihuana: licenses; definition of applicant; modify. Amends sec. 102 of 2016 PA 281 (MCL 333.27102).
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2019-04-17 - Assigned Pa 0003'19 With Immediate Effect [SB0203 Detail]
Download: Michigan-2019-SB0203-Engrossed.html
SB-0203, As Passed Senate, March 21, 2019
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.
