Bill Text: MN HF662 | 2011-2012 | 87th Legislature | Introduced


Bill Title: Medical marijuana regulated production provided for export, and rulemaking authorized.

Sponsorship: Partisan Bill (Democrat 7)

Status: (Introduced - Dead) 2011-02-24 - Introduction and first reading, referred to Agriculture and Rural Development Policy and Finance [HF662 Detail]

Download: Minnesota-2011-HF662-Introduced.html

1.1A bill for an act
1.2relating to agriculture; providing for regulated production of medical marijuana
1.3for export; authorizing rulemaking;amending Minnesota Statutes 2010, sections
1.418J.01; 18J.02; 18J.03; 18J.04, subdivisions 1, 2, 3, 4; 18J.05, subdivisions 1, 2,
1.56; 18J.06; 18J.07, subdivisions 3, 4, 5; 18J.09; 18J.11, subdivision 1, by adding a
1.6subdivision; proposing coding for new law as Minnesota Statutes, chapter 18K.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8    Section 1. Minnesota Statutes 2010, section 18J.01, is amended to read:
1.918J.01 DEFINITIONS.
1.10(a) The definitions in sections 18G.02 and, 18H.02, and 18K.03 apply to this chapter.
1.11(b) For purposes of this chapter, "associated rules" means rules adopted under this
1.12chapter, chapter 18G or, 18H, or 18K, or sections 21.80 to 21.92.

1.13    Sec. 2. Minnesota Statutes 2010, section 18J.02, is amended to read:
1.1418J.02 DUTIES OF COMMISSIONER.
1.15The commissioner shall administer and enforce this chapter, chapters 18G and,
1.1618H, and 18K, sections 21.80 to 21.92, and associated rules.

1.17    Sec. 3. Minnesota Statutes 2010, section 18J.03, is amended to read:
1.1818J.03 CIVIL LIABILITY.
1.19A person regulated by this chapter, chapter 18G or, 18H, or 18K, or sections 21.80
1.20to 21.92, is civilly liable for any violation of one of those statutes or associated rules by
1.21the person's employee or agent.

2.1    Sec. 4. Minnesota Statutes 2010, section 18J.04, subdivision 1, is amended to read:
2.2    Subdivision 1. Access and entry. The commissioner, upon presentation of official
2.3department credentials, must be granted immediate access at reasonable times to sites
2.4where a person manufactures, distributes, uses, handles, disposes of, stores, or transports
2.5seeds, plants, or other living or nonliving products or other objects regulated under chapter
2.618G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules.

2.7    Sec. 5. Minnesota Statutes 2010, section 18J.04, subdivision 2, is amended to read:
2.8    Subd. 2. Purpose of entry. (a) The commissioner may enter sites for:
2.9(1) inspection of inventory and equipment for the manufacture, storage, handling,
2.10distribution, disposal, or any other process regulated under chapter 18G or, 18H, or 18K,
2.11sections 21.80 to 21.92, or associated rules;
2.12(2) sampling of sites, seeds, plants, products, or other living or nonliving objects that
2.13are manufactured, stored, distributed, handled, or disposed of at those sites and regulated
2.14under chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules;
2.15(3) inspection of records related to the manufacture, distribution, storage, handling,
2.16or disposal of seeds, plants, products, or other living or nonliving objects regulated under
2.17chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules;
2.18(4) investigating compliance with chapter 18G or, 18H, or 18K, sections 21.80
2.19to 21.92, or associated rules; or
2.20(5) other purposes necessary to implement chapter 18G or, 18H, or 18K, sections
2.2121.80 to 21.92, or associated rules.
2.22(b) The commissioner may enter any public or private premises during or after
2.23regular business hours without notice of inspection when a suspected violation of chapter
2.2418G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules may threaten public
2.25health or the environment.

2.26    Sec. 6. Minnesota Statutes 2010, section 18J.04, subdivision 3, is amended to read:
2.27    Subd. 3. Notice of inspection samples and analyses. (a) The commissioner shall
2.28provide the owner, operator, or agent in charge with a receipt describing any samples
2.29obtained. If requested, the commissioner shall split any samples obtained and provide
2.30them to the owner, operator, or agent in charge. If an analysis is made of the samples,
2.31a copy of the results of the analysis must be furnished to the owner, operator, or agent
2.32in charge within 30 days after an analysis has been performed. If an analysis is not
2.33performed, the commissioner must notify the owner, operator, or agent in charge within 30
2.34days of the decision not to perform the analysis.
3.1(b) The sampling and analysis must be done according to methods provided for
3.2under applicable provisions of chapter 18G or, 18H, or 18K, sections 21.80 to 21.92,
3.3or associated rules. In cases not covered by those sections and methods or in cases
3.4where methods are available in which improved applicability has been demonstrated the
3.5commissioner may adopt appropriate methods from other sources.

3.6    Sec. 7. Minnesota Statutes 2010, section 18J.04, subdivision 4, is amended to read:
3.7    Subd. 4. Inspection requests by others. (a) A person who believes that a violation
3.8of chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules has occurred
3.9may request an inspection by giving notice to the commissioner of the violation. The
3.10notice must be in writing, state with reasonable particularity the grounds for the notice,
3.11and be signed by the person making the request.
3.12(b) If after receiving a notice of violation the commissioner reasonably believes that
3.13a violation has occurred, the commissioner shall make a special inspection in accordance
3.14with the provisions of this section as soon as practicable, to determine if a violation has
3.15occurred.
3.16(c) An inspection conducted pursuant to a notice under this subdivision may cover
3.17an entire site and is not limited to the portion of the site specified in the notice. If the
3.18commissioner determines that reasonable grounds to believe that a violation occurred
3.19do not exist, the commissioner must notify the person making the request in writing of
3.20the determination.

3.21    Sec. 8. Minnesota Statutes 2010, section 18J.05, subdivision 1, is amended to read:
3.22    Subdivision 1. Enforcement required. (a) A violation of chapter 18G or, 18H, or
3.2318K, sections 21.80 to 21.92, or an associated rule is a violation of this chapter.
3.24(b) Upon the request of the commissioner, county attorneys, sheriffs, and other
3.25officers having authority in the enforcement of the general criminal laws must take action
3.26to the extent of their authority necessary or proper for the enforcement of chapter 18G
3.27or, 18H, or 18K, sections 21.80 to 21.92, or associated rules or valid orders, standards,
3.28stipulations, and agreements of the commissioner.

3.29    Sec. 9. Minnesota Statutes 2010, section 18J.05, subdivision 2, is amended to read:
3.30    Subd. 2. Commissioner's discretion. If minor violations of chapter 18G or, 18H,
3.31or 18K, sections 21.80 to 21.92, or associated rules occur or the commissioner believes
3.32the public interest will be best served by a suitable notice of warning in writing, this
3.33section does not require the commissioner to:
4.1(1) report the violation for prosecution;
4.2(2) institute seizure proceedings; or
4.3(3) issue a withdrawal from distribution, stop-sale, or other order.

4.4    Sec. 10. Minnesota Statutes 2010, section 18J.05, subdivision 6, is amended to read:
4.5    Subd. 6. Agent for service of process. All persons licensed, permitted, registered,
4.6or certified under chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules
4.7must appoint the commissioner as the agent upon whom all legal process may be served
4.8and service upon the commissioner is deemed to be service on the licensee, permittee,
4.9registrant, or certified person.

4.10    Sec. 11. Minnesota Statutes 2010, section 18J.06, is amended to read:
4.1118J.06 FALSE STATEMENT OR RECORD.
4.12A person must not knowingly make or offer a false statement, record, or other
4.13information as part of:
4.14(1) an application for registration, license, certification, or permit under chapter 18G
4.15or, 18H, or 18K, sections 21.80 to 21.92, or associated rules;
4.16(2) records or reports required under chapter 18G or, 18H, or 18K, sections 21.80
4.17to 21.92, or associated rules; or
4.18(3) an investigation of a violation of chapter 18G or, 18H, or 18K, sections 21.80 to
4.1921.92 , or associated rules.

4.20    Sec. 12. Minnesota Statutes 2010, section 18J.07, subdivision 3, is amended to read:
4.21    Subd. 3. Cancellation of registration, permit, license, certification. The
4.22commissioner may cancel or revoke a registration, permit, license, or certification
4.23provided for under chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated
4.24rules or refuse to register, permit, license, or certify under provisions of chapter 18G or,
4.2518H, or 18K, sections 21.80 to 21.92, or associated rules if the registrant, permittee,
4.26licensee, or certified person has used fraudulent or deceptive practices in the evasion or
4.27attempted evasion of a provision of chapter 18G or, 18H, or 18K, sections 21.80 to 21.92,
4.28or associated rules.

4.29    Sec. 13. Minnesota Statutes 2010, section 18J.07, subdivision 4, is amended to read:
4.30    Subd. 4. Service of order or notice. (a) If a person is not available for service
4.31of an order, the commissioner may attach the order to the facility, site, seed or seed
4.32container, plant or other living or nonliving object regulated under chapter 18G or, 18H, or
5.118K, sections 21.80 to 21.92, or associated rules and notify the owner, custodian, other
5.2responsible party, or registrant.
5.3(b) The seed, seed container, plant, or other living or nonliving object regulated
5.4under chapter 18G or, 18H, or 18K, sections 21.80 to 21.92, or associated rules may not
5.5be sold, used, tampered with, or removed until released under conditions specified by the
5.6commissioner, by an administrative law judge, or by a court.

5.7    Sec. 14. Minnesota Statutes 2010, section 18J.07, subdivision 5, is amended to read:
5.8    Subd. 5. Unsatisfied judgments. (a) An applicant for a license, permit, registration,
5.9or certification under provisions of this chapter, chapter 18G or, 18H, or 18K, sections
5.1021.80 to 21.92, or associated rules may not allow a final judgment against the applicant
5.11for damages arising from a violation of those statutes or rules to remain unsatisfied for
5.12a period of more than 30 days.
5.13(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation
5.14of this chapter results in automatic suspension of the license, permit, registration, or
5.15certification.

5.16    Sec. 15. Minnesota Statutes 2010, section 18J.09, is amended to read:
5.1718J.09 CREDITING OF PENALTIES, FEES, AND COSTS.
5.18Penalties, cost reimbursements, fees, and other money collected under this chapter
5.19must be deposited into the state treasury and credited to the appropriate nursery and
5.20phytosanitary, medical marijuana, or seed account.

5.21    Sec. 16. Minnesota Statutes 2010, section 18J.11, subdivision 1, is amended to read:
5.22    Subdivision 1. General violation. Except as provided in subdivisions 2 and, 3, and
5.234, a person is guilty of a misdemeanor if the person violates this chapter or an order,
5.24standard, stipulation, agreement, or schedule of compliance of the commissioner.

5.25    Sec. 17. Minnesota Statutes 2010, section 18J.11, is amended by adding a subdivision
5.26to read:
5.27    Subd. 4. Controlled substance offenses. Prosecution under this section does not
5.28preclude prosecution under chapter 152.

5.29    Sec. 18. [18K.01] SHORT TITLE.
5.30This chapter may be referred to as the "Medical Marijuana Production and Export
5.31Act."

6.1    Sec. 19. [18K.02] PURPOSE.
6.2The legislature finds that the production and export of medical marijuana can
6.3contribute to the state's economy and agricultural vitality and can be regulated so as not to
6.4interfere with the strict regulation of controlled substances in this state. The purpose of
6.5the Medical Marijuana Production and Export Act is to strengthen the state economy and
6.6its agricultural sectors by authorizing the development of a regulated medical marijuana
6.7production and export industry while maintaining strict control of marijuana.

6.8    Sec. 20. [18K.03] DEFINITIONS.
6.9    Subdivision 1. Scope. The definitions in this section apply to this chapter.
6.10    Subd. 2. Commissioner. "Commissioner" means the commissioner of agriculture.
6.11    Subd. 3. Medical marijuana. "Medical marijuana" means marijuana, as defined in
6.12section 152.01, subdivision 9, that is produced, processed, and transported exclusively
6.13for export and legal consumption by a person domiciled in a state or country where it is
6.14lawful to use marijuana to treat a medical condition.

6.15    Sec. 21. [18K.04] MEDICAL MARIJUANA AUTHORIZED AS
6.16AGRICULTURAL CROP.
6.17Medical marijuana is considered an agricultural crop in this state if produced,
6.18processed, and transported in compliance with this chapter.

6.19    Sec. 22. [18K.05] LICENSING.
6.20(a) A person involved with the production or processing of medical marijuana
6.21must be licensed and must apply to the commissioner annually on a form prescribed by
6.22the commissioner.
6.23(b) The application for a license must include the name and address of the applicant
6.24and the legal description of the land area the applicant will use to produce or process
6.25medical marijuana.
6.26(c) The person must submit an affidavit on a form provided by the commissioner
6.27certifying that:
6.28(1) the person will produce, process, and possess marijuana only for export and
6.29in full compliance with this chapter and any corresponding rules promulgated by the
6.30commissioner; and
6.31(2) any consumption or unauthorized possession of marijuana will be prosecuted to
6.32the fullest extent provided by law.
7.1(d) The commissioner must require each first-time applicant for a license to submit
7.2to a background investigation conducted by the Bureau of Criminal Apprehension as a
7.3condition of licensure. As part of the background investigation, the Bureau of Criminal
7.4Apprehension must conduct criminal history checks of Minnesota records and is authorized
7.5to exchange fingerprints with the Federal Bureau of Investigation for the purpose of a
7.6criminal background check of the national files. The cost of the investigation must be paid
7.7by the applicant. Criminal history records provided to the department under this section
7.8must be treated as private data on individuals, as defined in section 13.02, subdivision 12.
7.9(e) If the applicant has completed the application process to the satisfaction of the
7.10commissioner, the commissioner must issue a license which is valid until December 31
7.11of the year of application. An individual licensed under this section is presumed to be
7.12producing or processing medical marijuana for export.

7.13    Sec. 23. [18K.06] MEDICAL MARIJUANA PRODUCTION; NOTIFICATION.
7.14(a) Annually, a licensee must file with the commissioner a complete accounting of
7.15the origin and final disposition of any medical marijuana produced, processed, or otherwise
7.16possessed by the licensee during the reporting year, including but not limited to inventory
7.17records and shipping records that demonstrate to the satisfaction of the commissioner that
7.18any sale or distribution of medical marijuana was made to a person domiciled in a state or
7.19country where it is lawful to use marijuana to treat a medical condition.
7.20(b) A licensee must notify the commissioner in advance of any pending sale or
7.21distribution of medical marijuana. The notice must include, but need not be limited to,
7.22the name and address of the person or entity that will transport or receive the medical
7.23marijuana and the amount of medical marijuana sold.

7.24    Sec. 24. [18K.07] RULEMAKING.
7.25The commissioner may make rules governing, but not limited to:
7.26(1) supervising and inspecting medical marijuana during its growth, harvest,
7.27processing, and transport;
7.28(2) assessing a fee commensurate with the costs incurred by the commissioner to
7.29fulfill obligations under this chapter and any associated rules;
7.30(3) using the results of the background checks authorized in section 18K.05 as
7.31criteria for approving or denying an application for medical marijuana licensure; and
7.32(4) any other rule or procedure necessary to carry out the purposes of this chapter.

7.33    Sec. 25. [18K.08] FEES.
8.1Fees collected under this chapter must be credited to the medical marijuana account,
8.2which is hereby established in the agricultural fund in the state treasury. Interest earned
8.3in the account accrues to the account. Funds in the medical marijuana account are
8.4continuously appropriated to the commissioner to implement and enforce this chapter.

8.5    Sec. 26. [18K.09] DEFENSE FOR POSSESSION OF MARIJUANA.
8.6It is an affirmative defense to a prosecution for the possession of marijuana under
8.7chapter 152 if:
8.8(1) the defendant was growing, possessing, or transporting medical marijuana in full
8.9compliance with the provisions of this chapter and any associated rules; and
8.10(2) the substance in possession is medical marijuana, as defined in section 18K.03.
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