Bill Text: MI SB0600 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Marihuana; facilities; applicant for medical marihuana facilities license; allow continued operation in certain circumstances. Amends secs. 302 & 402 of 2016 PA 281 (MCL 333.27302 & 333.27402). TIE BAR WITH: SB 0599'17
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-09-28 - Referred To Committee On Health Policy [SB0600 Detail]
Download: Michigan-2017-SB0600-Introduced.html
SENATE BILL No. 600
September 28, 2017, Introduced by Senators JONES and KNEZEK and referred to the Committee on Health Policy.
A bill to amend 2016 PA 281, entitled
"Medical marihuana facilities licensing act,"
by amending sections 302 and 402 (MCL 333.27302 and 333.27402),
section 402 as amended by 2017 PA 105.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 302. The board has general responsibility for
implementing this act. The board has the powers and duties
specified in this act and all other powers necessary and proper to
fully and effectively implement and administer this act for the
purpose of licensing, regulating, and enforcing the licensing and
regulation system established under this act for marihuana growth,
processing, testing, and transporting. The board is subject to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328. The board's duties include all of the following:
(a) Granting or denying each application for a state operating
license within a reasonable time.
(b)
Deciding all license applications for a state operating
license in reasonable order.
(c) Conducting its public meetings in compliance with the open
meetings
act, 1976 PA 267, MCL 15.231 15.261
to 15.246.15.275.
(d) Consulting with the department in promulgating rules and
emergency rules as necessary to implement, administer, and enforce
this act. The board shall not promulgate a rule establishing a
limit
on the number or type of marihuana facility state operating
licenses that may be granted.
(e) Implementing and collecting the application fee described
in section 401 and, in conjunction with the department of treasury,
the tax described in section 601 and regulatory assessment
described in section 603.
(f) Providing for the levy and collection of fines for a
violation of this act or rules.
(g) Providing oversight of a marihuana facility through the
board's inspectors, agents, and auditors and through the state
police or attorney general for the purpose of certifying the
revenue, receiving complaints from the public, or conducting
investigations into the operation of the marihuana facility as the
board considers necessary and proper to ensure compliance with this
act and rules and to protect and promote the overall safety,
security, and integrity of the operation of a marihuana facility.
(h) Providing oversight of marihuana facilities to ensure that
marihuana-infused products meet health and safety standards that
protect the public to a degree comparable to state and federal
standards applicable to similar food and drugs.
(i) Reviewing and ruling on any complaint by a licensee
regarding any investigative procedures of this state that are
believed to be unnecessarily disruptive of marihuana facility
operations. The need to inspect and investigate is presumed at all
times. The board may delegate authority to hear, review, or rule on
licensee complaints to a subcommittee of the board. To prevail on
the complaint, a licensee must establish by a preponderance of the
evidence that the procedures unreasonably disrupted its marihuana
facility operations.
(j) Holding at least 2 public meetings each year. Upon 72
hours' written notice to each member, the chairperson or any 2
board members may call a special meeting. Three members of the
board constitute a quorum, including when making determinations on
an application for a state operating license. Three votes are
required in support of final determinations of the board on
applications for state operating licenses and all other licensing
determinations, except that 4 votes are required in support of a
determination to suspend or revoke a state operating license. The
board shall keep a complete and accurate record of all of its
meetings and hearings. Upon order of the board, 1 of the board
members or a hearing officer designated by the board may conduct
any hearing provided for under this act or by rules and may
recommend findings and decisions to the board. The board member or
hearing officer conducting the hearing has all powers and rights
regarding the conduct of hearings granted to the board under this
act. The board or a majority of the board shall review the record
made
at the time of the hearing, shall be reviewed by the board or
a
majority of the board, and the
findings and decision of the
majority of the board are the order of the board in the case.
(k) Maintaining records that are separate and distinct from
the
records of any other state board. The records shall must be
made available for public inspection subject to the limitations of
this
act and shall must accurately reflect all board proceedings.
(l) Reviewing the patterns of marihuana transfers by the
licensees under this act as recorded in a statewide database
established for use in administering and enforcing this act and
making recommendations to the governor and the legislature in a
written annual report to the governor and the legislature and
additional reports that the governor requests. The annual report
shall
must be submitted by April 15 of each year and shall must
include the report required under section 702, a statement of
receipts and disbursements by the board, the actions taken by the
board, and any additional information and recommendations that the
board considers appropriate or that the governor requests.
(m) Except as otherwise provided in this act, all information,
records, interviews, reports, statements, memoranda, or other data
supplied to or used by the board are subject to the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246, except for the
following:
(i) Unless presented during a public hearing or requested by
the licensee or applicant who is the sole subject of the data, all
of the information, records, interviews, reports, statements,
memoranda, or other data supplied to, created by, or used by the
board related to background investigation of applicants or
licensees and to trade secrets, internal controls, and security
measures of the licensees or applicants.
(ii) All information, records, interviews, reports,
statements, memoranda, or other data supplied to or used by the
board that have been received from another jurisdiction or local,
state, or federal agency under a promise of confidentiality or if
the release of the information is otherwise barred by the statutes,
rules, or regulations of that jurisdiction or agency or by an
intergovernmental agreement.
(iii) All information in the statewide monitoring system.
Sec. 402. (1) The board shall issue a license to an applicant
who submits a complete application and pays both the nonrefundable
application fee required under section 401(5) and the regulatory
assessment established by the board for the first year of
operation, if the board determines that the applicant is qualified
to receive a license under this act. For an applicant who, on or
before February 15, 2018, submits a complete application and pays
both the nonrefundable application fee required under section
401(5) and the regulatory assessment established by the board for
the first year of operation, the board shall determine whether the
applicant is qualified to receive a license under this act on or
before August 15, 2018.
(2) An applicant is ineligible to receive a license if any of
the following circumstances exist:
(a) The applicant has been convicted of or released from
incarceration for a felony under the laws of this state, any other
state, or the United States within the past 10 years or has been
convicted of a controlled substance-related felony within the past
10 years.
(b) Within the past 5 years the applicant has been convicted
of a misdemeanor involving a controlled substance, theft,
dishonesty, or fraud in any state or been found responsible for
violating a local ordinance in any state involving a controlled
substance, dishonesty, theft, or fraud that substantially
corresponds to a misdemeanor in that state.
(c) The applicant has knowingly submitted an application for a
license under this act that contains false information.
(d) The applicant is a member of the board.
(e) The applicant fails to demonstrate the applicant's ability
to maintain adequate premises liability and casualty insurance for
its proposed marihuana facility.
(f) The applicant holds an elective office of a governmental
unit of this state, another state, or the federal government; is a
member of or employed by a regulatory body of a governmental unit
in this state, another state, or the federal government; or is
employed by a governmental unit of this state. This subdivision
does not apply to an elected officer of or employee of a federally
recognized Indian tribe or to an elected precinct delegate.
(g) The applicant, if an individual, has been a resident of
this state for less than a continuous 2-year period immediately
preceding the date of filing the application. The requirements in
this subdivision do not apply after June 30, 2018.
(h) The board determines that the applicant is not in
compliance with section 205(1). This subdivision does not apply to
an applicant who meets the requirements of section 201(5).
(i) The applicant fails to meet other criteria established by
rule.
(3) In determining whether to grant a license to an applicant,
the board may also consider all of the following:
(a) The integrity, moral character, and reputation; personal
and business probity; financial ability and experience; and
responsibility or means to operate or maintain a marihuana facility
of the applicant and of any other person that meets either of the
following:
(i) Controls, directly or indirectly, the applicant.
(ii) Is controlled, directly or indirectly, by the applicant
or by a person who controls, directly or indirectly, the applicant.
(b) The financial ability of the applicant to purchase and
maintain adequate liability and casualty insurance.
(c) The sources and total amount of the applicant's
capitalization to operate and maintain the proposed marihuana
facility.
(d) Whether the applicant has been indicted for, charged with,
arrested for, or convicted of, pled guilty or nolo contendere to,
forfeited bail concerning, or had expunged any relevant criminal
offense under the laws of any jurisdiction, either felony or
misdemeanor, not including traffic violations, regardless of
whether the offense has been expunged, pardoned, or reversed on
appeal or otherwise.
(e) Whether the applicant has filed, or had filed against it,
a proceeding for bankruptcy within the past 7 years.
(f) Whether the applicant has been served with a complaint or
other notice filed with any public body regarding payment of any
tax required under federal, state, or local law that has been
delinquent for 1 or more years.
(g) Whether the applicant has a history of noncompliance with
any regulatory requirements in this state or any other
jurisdiction.
(h) Whether at the time of application the applicant is a
defendant in litigation involving its business practices.
(i) Whether the applicant meets other standards in rules
applicable to the license category.
(4) Each applicant shall submit with its application, on forms
provided by the board, a passport quality photograph and shall
ensure that 1 set of fingerprints is submitted to the department of
state police for each person having any ownership interest in the
marihuana facility and each person who is an officer, director, or
managerial employee of the applicant, in order for the department
of state police to conduct a criminal history check on each person
and to forward each person's fingerprints to the Federal Bureau of
Investigation for a national criminal history check. The applicant
shall submit with its application each person's written consent to
the criminal history check described in this section and the
submission of each person's fingerprints to, and the inclusion of
each person's fingerprints in, the state and federal database
systems described in subsection (7).
(5) The fingerprints required under subsection (4) may be
taken by a law enforcement agency or any other person determined by
the department of state police to be qualified to take
fingerprints. The applicant shall submit a fingerprint processing
fee to the department in an amount required under section 3 of 1935
PA 120, MCL 28.273, and any costs imposed by the Federal Bureau of
Investigation.
(6) The department of state police shall conduct a criminal
history check on each person described in subsection (4) and shall
request the Federal Bureau of Investigation to make a determination
of the existence of any national criminal history pertaining to
each person. The department of state police shall provide the board
with a written report containing the criminal history record
information of each person who was the subject of the criminal
history check conducted under this section.
(7) All of the following apply concerning fingerprints
submitted to the department of state police under this section:
(a) The department of state police shall store and retain all
fingerprints submitted under this section in an automated
fingerprint identification system database that searches against
latent fingerprints, and provides for an automatic notification if
and when a subsequent fingerprint is submitted into the system that
matches a set of fingerprints previously submitted under this
section or if and when the criminal history of an individual whose
fingerprints are retained in the system is updated. Upon receiving
a notification, the department of state police shall immediately
notify the board. Information in the database maintained under this
subsection is confidential, is not subject to disclosure under the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, and
shall
must not be disclosed to any person except for purposes
of
this act or for law enforcement purposes.
(b) The department of state police shall forward all
fingerprints submitted to it under this section to the Federal
Bureau of Investigation for submission of those fingerprints into
the FBI automatic notification system. This subdivision does not
apply until the department of state police is a participant in the
FBI automatic notification system. As used in this subdivision:
(i) "Automatic notification system" means a system that stores
and retains fingerprints, and that provides for an automatic
notification to a participant if and when a fingerprint is
submitted into the system that matches an individual whose
fingerprints are retained in the system or if and when the criminal
history of an individual whose fingerprints are retained in the
system is updated.
(ii) "FBI automatic notification system" means the automatic
notification system that is maintained by the Federal Bureau of
Investigation.
(8) The board shall review all applications for licenses and
shall inform each applicant of the board's decision.
(9) A license shall be issued for a 1-year period and is
renewable annually. Except as otherwise provided in this act, the
board shall renew a license if all of the following requirements
are met:
(a) The licensee applies to the board on a renewal form
provided by the board that requires information prescribed in
rules.
(b) The application is received by the board on or before the
expiration date of the current license.
(c) The licensee pays the regulatory assessment under section
603.
(d) The licensee meets the requirements of this act and any
other renewal requirements set forth in rules.
(10) The department shall notify the licensee by mail or
electronic mail at the last known address on file with the board
advising of the time, procedure, and regulatory assessment under
section 603. The failure of the licensee to receive notice under
this subsection does not relieve the licensee of the responsibility
for renewing the license.
(11) If a license renewal application is not submitted by the
license expiration date, the license may be renewed within 60 days
after its expiration date upon application, payment of the
regulatory assessment under section 603, and satisfaction of any
renewal requirement and late fee set forth in rules. The licensee
may continue to operate during the 60 days after the license
expiration date if the license is renewed by the end of the 60-day
period.
(12) License expiration does not terminate the board's
authority to impose sanctions on a licensee whose license has
expired.
(13) In its decision on an application for renewal, the board
shall consider any specific written input it receives from an
individual or entity within the local unit of government in which
the applicant for renewal is located.
(14) A licensee must consent in writing to inspections,
examinations, searches, and seizures that are permitted under this
act and must provide a handwriting exemplar, fingerprints,
photographs, and information as authorized in this act or by rules.
(15) An applicant or licensee has a continuing duty to provide
information requested by the board and to cooperate in any
investigation, inquiry, or hearing conducted by the board.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 599
of the 99th Legislature is enacted into law.