Bill Text: MI SB0600 | 2017-2018 | 99th Legislature | Introduced

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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

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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.