Michigan Marihuana Bill Analysis - Perpared by the Senate Fiscal Agency, 9-23-16

House Bill 4209 enacts the "Medical Marihuana Facilities Licensing Act" to do the following:

  • Provide for the licensure of marihuana growers, processors, secure transporters, provisioning centers, and safety compliance facilities.
  • Establish the licensure process within the Department of Licensing and Regulatory Affairs (LARA).
  • Create the Medical Marihuana Licensing Board within LARA to implement the Act, including the licensing process, and give the Board jurisdiction over the operation of all marihuana facilities.
  • Require applicants for a license to pay an application fee and require licensees to pay an annual regulatory assessment, which will be deposited in a new "Marihuana Regulatory Fund".
  • Require money in that Fund to be used for implementing, administering, and enforcing the Act.
  • Require provisioning centers to pay a tax on their retail gross income, and require the tax to be deposited in a new "Medical Marihuana Excise Fund".
  • Require money in the Excise Fund to be distributed to municipalities and counties where marihuana facilities are located, the Michigan Commission on Law Enforcement Standards, the State Police, and, until September 30, 2017, the State General Fund.
  • Require money in the Excise Fund to be distributed to the First Responder Presumed Coverage Fund, rather than the State General Fund, beginning October 1, 2017.
  • Authorize the Board to impose license sanctions and civil fines for violations of the Act or rules.
  • Impose various restrictions on Board members, employees, and agents related to conflicts of interests and relationships with licensees, and require members, employees, and agents to make certain disclosures.
  • Exempt licensees from marihuana-related criminal or civil prosecution and penalties, and other sanctions, for performing activities within the scope of their license.
  • Provide that a registered qualifying patient or registered primary caregiver will not be subject to criminal prosecution or sanctions for purchasing marihuana from a provisioning center.
  • Require LARA to promulgate rules and emergency rules in consultation with the Board. Page 2 of 29 hb4209/1516
  • Require licensees to adopt and use a third-party inventory control and tracking system.
  • Require licensees to file with LARA proof of financial responsibility for liability for bodily injury to a lawful user from adulterated marihuana.
  • Create the Marihuana Advisory Panel to make recommendations to the Board.

House Bill 4210 amends the Michigan Medical Marihuana Act (MMMA) to do the following concerning marihuana-infused products:

  • Prevent a person from being penalized for manufacturing a marihuana-infused product if the person is a qualified registered patient or a registered primary caregiver.
  • Prohibit a patient from transferring a marihuana-infused product or marihuana to another individual, and prohibit a caregiver from transferring a marihuana infused product to someone other than a qualifying patient of the caregiver.
  • Prohibit a qualifying patient or primary caregiver from transporting or possessing a marihuana-infused product in or upon a motor vehicle, unless certain conditions are satisfied, and prescribe a maximum civil fine of $250 for a violation.

Also, where the Act allows a qualifying patient or primary caregiver to possess 2.5 ounces of usable marihuana, the bill allows a combined total of 2.5 ounces of usable marihuana and usable marihuana equivalents (which refers to the amount of usable marihuana in a marihuana-infused product).

In addition, the bill extends criminal and civil immunity to a person for the transfer, purchase, or sale of marihuana pursuant to the Medical Marihuana Facilities Licensing Act. The bill also does the following:

  • Specifies that the MMMA does not permit a person to separate plant resin from a marihuana plant by butane extraction in any public place or motor vehicle or inside or within the curtilage of a residential structure, or in a manner that that fails to exercise reasonable care or a disregard for the safety of others.
  • Requires LARA to verify the authenticity of a registry ID card to the database created in the Marihuana Tracking Act. -- Appropriates $8.5 million to LARA for its initial costs of implementing the Marihuana Facilities Licensing Act and the Marihuana Tracking Act.
  • Includes statements of intent and retroactivity.

House Bill 4827 enacts the "Marihuana Tracking Act" to:

  • Require LARA to establish a statewide internet-based monitoring system for integrated tracking, inventory, and verification.
  • Require the system to have specified capabilities.
  • Require LARA to seek bids to establish, operate, and maintain the system.
  • Require the awardee to deliver the functioning system within 180 days after the contract is awarded.
  • Allow LARA to terminate the contract for a violation of the Act.
  • Provide for the confidentiality of information in the system.