HOUSE BILL No. 5580

May 1, 2012, Introduced by Reps. Callton, Daley and Cavanagh and referred to the Committee on Judiciary.

A bill to regulate medical marihuana provisioning centers; to provide for powers and duties of local units of government concerning medical marihuana provisioning centers; to provide for certain immunities for persons engaging in activities in accordance with this act; and to provide for penalties and sanctions for violations of this act.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

“medical marihuana provisioning center regulation act”.

Sec. 2. As used in this act:

(a) “Excluded felony offense” means a felony involving illegal

drugs. It does not include a conviction for activity allowed under

the Michigan medical marihuana act, 2008 IL 1, MCL 333.26421 to

333.26430, or this act, even if the activity occurred prior to the

enactment of the Michigan medical marihuana act, 2008 IL 1, MCL

333.26421 to 333.26430, or this act.

(b) “Medical marihuana provisioning center” or “provisioning

center” means a commercial entity located in this state that

acquires, possesses, cultivates, manufactures, delivers, transfers,

or transports marihuana and sells, supplies, or dispenses marihuana

to registered qualifying patients, directly or through the

patients’ registered primary caregivers. Provisioning center

includes any commercial property where marihuana is sold to

qualifying patients and their registered primary caregivers.

(c) “Municipality” means a city, township, or village.

(d) “Paraphernalia” means drug paraphernalia as defined in

section 7451 of the public health code, 1978 PA 368, MCL 333.7451,

that is or may be used in association with medical marihuana.

(e) “Provisioning center agent” means a principal officer,

board member, employee, operator, or agent of a provisioning

center.

(f) “Registered primary caregiver” means a person who has been

issued a valid, unexpired registry identification card pursuant to

section 6(d) of the Michigan medical marihuana act, 2008 IL 1, MCL

333.26426, or who satisfies the criteria listed in section 9(b) or

(c) of the Michigan medical marihuana act, 2008 IL 1, MCL

333.26429, and possesses the documentation that constitutes a valid

registry identification card under that section.

(g) “Registered qualifying patient” means a person who meets

any of the following requirements:

(i) Has been issued a valid qualifying patient registry

identification card pursuant to section 6(a) or (b) of the Michigan

medical marihuana act, 2008 IL 1, MCL 333.26426.

(ii) Satisfies the criteria listed in section 9(b) or (c) of

the Michigan medical marihuana act, 2008 IL 1, MCL 333.26429, and

possesses the documentation that that section establishes as a

valid registry identification card.

(h) “Safety compliance facility” means an entity that tests

marihuana produced for medical use for contaminants or potency.

(i) “Safety compliance facility agent” means a principal

officer, board member, employee, operator, or agent of a safety

compliance facility.

(j) “Secure cultivation facility” means a nonresidential

building or location within a nonresidential building that is

equipped with locks or other security devices to prevent

unauthorized entry. A secure cultivation facility shall allow

access only to the following:

(i) A registered primary caregiver or provisioning center agent

of the provisioning center that controls the secure cultivation

facility.

(ii) A municipal employee performing inspections, if

inspections are authorized by municipal law.

(iii) Emergency personnel while responding to an emergency.

(iv) If accompanied by a provisioning center agent and by

permission or request of the provisioning center, a member of the

media or a government official.

(v) If accompanied by a provisioning center agent, a

registered qualifying patient or registered primary caregiver.

(vi) If accompanied by a provisioning center agent, a

contractor who is not engaged in the provisioning center’s

cultivation, distribution, or possession of marihuana.

(k) “Seedling” means a marihuana plant that has no flowers, is

less than 12 inches in height, and is less than 12 inches in

diameter.

(l) “Usable marihuana” means the completely dried leaves and

flowers of the marihuana plant but does not include the seeds,

stalks, nondried leaves, or roots of the plant. Any cooking mixture

or preparation used to prepare marihuana infused ingestible or

topical products is not usable marihuana, if the ingestible or

topical product has or will have the amount of actual marihuana

plant material used in its preparation clearly marked on its

packaging.

(m) “Visiting qualifying patient” means a patient who is not a

resident of this state or who has been a resident of this state for

less than 30 days and who possesses a registry identification card,

or its equivalent, that was issued under the laws of another state,

district, territory, commonwealth, or insular possession of the

United States that allows the medical use of marihuana by the

patient.

Sec. 3. (1) Except as provided in this act, if a provisioning

center has been granted any applicable required municipal

registration or license and is operating in accordance with this

act and any applicable municipal ordinance, the provisioning center

and the provisioning center agents acting on its behalf are not

subject to any of the following for engaging in activities

described in subsection (2):

(a) Criminal penalties under state law or local ordinances.

(b) State or local civil prosecution.

(c) Search or inspection, except for an inspection authorized

by the municipality.

(d) Seizure.

(e) Any sanction, including disciplinary action or denial of a

right or privilege, by a business or occupational or professional

licensing board or bureau.

(2) Activities that are exempt from the regulation and

sanctions under subsection (1) include all of the following:

(a) Purchasing or receiving marihuana seeds from visiting

qualifying patients, registered qualifying patients, registered

primary caregivers, or provisioning centers.

(b) Purchasing or receiving marihuana, including seedlings,

from 1 or more other provisioning centers if purchasing or

receiving marihuana from the provisioning center is not prohibited

by the municipality where the provisioning center is located.

(c) Purchasing or receiving marihuana from a registered

qualifying patient or a registered primary caregiver if purchasing

or receiving marihuana from a registered qualifying patient or

registered primary caregiver is not prohibited by the municipality

where the provisioning center is located and if the amount

purchased does not exceed the registered qualifying patient’s or

registered primary caregiver’s possession limits under the Michigan

medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430.

(d) Cultivating or manufacturing marihuana in a secure

cultivation facility, except that seedlings need not be in a secure

cultivation facility when they are transported.

(e) Possessing or manufacturing marihuana paraphernalia.

(f) Possessing or processing marihuana produced by the

provisioning center or obtained pursuant to subdivision (a) or (b)

on the provisioning center premises, at a secure cultivation

facility, or while the marihuana is being transported pursuant to

this section.

(g) If not prohibited by municipal law, transporting

marihuana, including seedlings, between the provisioning center and

another provisioning center, the provisioning center and a secured

cultivation facility, or the provisioning center and a safety

compliance facility.

(h) Transporting or delivering marihuana or paraphernalia to

the residence of a registered qualifying patient or a registered

primary caregiver if delivery is not prohibited by the municipality

or municipalities where the delivery and transportation occur.

(i) Supplying, selling, dispensing, transferring, or

delivering marihuana, paraphernalia, or related supplies and

educational materials in accordance with the procedures and

limitations detailed in section 7(12) to (14).

Sec. 4. (1) Except as provided in this act, a safety

compliance facility that has been granted any applicable required

municipal registration or license and is operating in accordance

with any applicable municipal ordinance and this act is not subject

to any of the following for engaging in activities described in

subsection (2):

(a) Criminal penalties under state law or local ordinances.

(b) State or local civil prosecution.

(c) Search or inspection, except for an inspection authorized

by the municipality.

(d) Seizure.

(e) Any sanction, including disciplinary action or denial of a

right or privilege, by a business or occupational or professional

licensing board or bureau.

(2) Activities that are exempt from regulation and sanction

under subsection (1) include all of the following:

(a) Acquiring or possessing marihuana obtained from registered

qualifying patients, registered primary caregivers, or provisioning

centers.

(b) Returning the marihuana to the registered qualifying

patient, registered primary caregiver, or provisioning center that

delivered the marihuana to the safety compliance facility.

(c) Transporting marihuana to or from a registered qualifying

patient, registered primary caregiver, or provisioning center.

(d) Possessing marihuana on the safety compliance facility’s

premises for testing, if the marihuana was obtained pursuant to

subdivision (a) or (b).

(e) Receiving compensation for actions permitted pursuant to

this section and municipal law.

Sec. 5. (1) A municipality may prohibit the operation of

provisioning centers or safety compliance facilities within the

municipality. A provisioning center is not exempt under section 3

from state criminal and civil penalties if it operates in a

municipality that prohibits provisioning centers. A safety

compliance facility is not exempt under section 4 from state

criminal and civil penalties if it operates in a municipality that

prohibits safety compliance facilities.

(2) A municipality may enact an ordinance to impose and

enforce additional local requirements on provisioning centers or

safety compliance facilities. A municipality may require and issue

a registration or license to a provisioning center or safety

compliance facility and may regulate operations and impose civil or

criminal penalties for the violations of the local ordinance. A

municipality may charge a registration or licensing fee for a

provisioning center or safety compliance facility that does not

exceed the costs to the municipality of regulation, licensing,

testing, and inspection.

(3) A provisioning center or safety compliance facility

located in a municipality that requires a registration or license

is exempt under section 3 or 4 from criminal penalties only if the

provisioning center or safety compliance facility holds that

license or registration.

(4) A municipality may require, as a condition of registration

or licensure, that a provisioning center or a safety compliance

facility provide results of testing of its marihuana and marihuana

products for quality control, purity, contaminants, or any other

analysis to protect the health and safety of medical marihuana

patients and to assure compliance with this act and a municipal

ordinance adopted under this act.

Sec. 6. (1) The exemptions for a provisioning center or safety

compliance facility under section 3 or 4 apply only if the

indicated activities are carried out in accordance with this act.

(2) All other acts and parts of acts inconsistent with this

act do not apply to the medical use of marihuana as provided for by

this act.

Sec. 7. (1) Except as explicitly allowed by a municipal

ordinance predating the effective date of this act, a provisioning

center, a secure cultivation facility, or a safety compliance

facility shall not be located within 1,000 feet of the property

line of a pre-existing primary or secondary school.

(2) A secure cultivation facility shall not be located on

residential property.

(3) A provisioning center shall not share office space with a

physician.

(4) Each provisioning center location and secure cultivation

facility shall have a security alarm system that is enabled

whenever provisioning center agents are not present.

(5) A provisioning center shall not sell, transfer, or

dispense a marihuana infused product unless it is labeled with both

of the following:

(a) The weight of marihuana contained.

(b) The words – “WARNING: This product contains marihuana. For

a qualifying patient’s medical use only.” or substantially similar

text.

(6) A provisioning center shall not advertise marihuana for

sale on a billboard, television, or radio. The department of

licensing and regulation may promulgate additional rules

restricting advertising of marihuana. The rules shall not prohibit

appropriate signs on the property of the provisioning center,

websites for the provisioning center or registered primary

caregiver, listings in business directories or telephone books,

listings in trade or medical print or online publications, or

advertising the sponsorship of health or not-for-profit charity or

advocacy events.

(7) A provisioning center or safety compliance facility shall

not knowingly employ an agent with an excluded felony offense or

who is under 21 years of age. A provisioning center or safety

compliance facility shall perform a background check on an

individual before he or she is offered employment to verify that he

or she does not have a conviction for an excluded felony offense.

(8) Each provisioning center shall maintain records listing

each agent for the provisioning center, including the beginning

employment date and the date a background check was performed.

(9) A provisioning center shall not allow on-site consumption

of marihuana, except that a provisioning center employee who is a

medical marihuana patient may be permitted to use a marihuana

infused topical product.

(10) A provisioning center shall not dispense more than 2.5

ounces of useable marihuana in any 10-day day period to a

registered qualifying patient, directly or through his or her

primary caregiver.

(11) A provisioning center shall ensure compliance with the

dispensing limit under subsection (10) by maintaining internal,

confidential records that specify the amount of marihuana dispensed

to each registered qualifying patient and registered primary

caregiver and whether it was dispensed directly to the registered

qualifying patient or the registered primary caregiver. Each entry

shall include the date and time the marihuana was dispensed.

Entries shall be maintained for at least 90 days. For any

registered qualifying patient or registered qualifying caregiver in

possession of a registry identification card, a record shall be

kept using the patient’s or caregiver’s registry identification

number instead of the patient’s or caregiver’s name. Confidential

dispensing records are subject to reasonable inspection by a

municipal employee authorized to inspect provisioning centers under

municipal law to ensure compliance with this act, but may be stored

off-site. Confidential dispensing records are exempt from

disclosure under the freedom of information act, 1976 PA 442, MCL

15.231 to 15.246. Except as required by a court order, a

provisioning center may not disclose confidential dispensing

records to any person other than a municipal employee performing an

inspection in accordance with this subsection or a provisioning

center agent.

(12) A provisioning center agent shall not dispense, transfer,

or sell marihuana to a person knowing that the person is not a

registered qualifying patient, registered primary caregiver, or

dispensary agent working on behalf of a provisioning center that is

not prohibited from operating or obtaining marihuana from other

provisioning centers under municipal law.

(13) Before marihuana is dispensed or sold from a provisioning

center, in addition to complying with subsection (14), a

provisioning center agent shall do 1 of the following:

(a) Verify that the person requesting marihuana holds what the

provisioning center agent reasonably believes to be an unexpired

primary caregiver or a qualifying patient registry identification

card.

(b) Require the person requesting marihuana to do all of the

following:

(i) Certify that he or she is a qualifying patient who

submitted a valid, complete application for a registry

identification card at least 20 days earlier.

(ii) Certify that to the best of his or her knowledge, the

state has not denied the application or issued a registry

identification card.

(iii) Present a copy of the completed registry identification

card application and proof of receipt by the state department that

processes medical marihuana applications at least 20 days before

the date of the requested sale or transaction.

(c) If the person requesting marihuana purports to be a

provisioning center agent, make a diligent, good-faith effort to

verify that the person is a provisioning center agent for a

provisioning center that is allowed to operate by a municipality.

(14) Before marihuana is dispensed or sold from a provisioning

center, a provisioning center agent shall make a diligent, good-

faith effort to determine that the person named in the registry

identification card or other documentation submitted under

subsection (13) is the person seeking to obtain marihuana, by

examining what the provisioning center agent reasonably believes to

be valid government-issued photo identification.

(15) A person who is under 21 years of age or who has been

convicted of an excluded felony offense shall not serve as a

provisioning center agent or safety compliance facility agent. A

person who has not maintained a residence in this state for 2 years

or more shall not serve as a principal officer, board member, or

operator of a provisioning center or of a safety compliance

facility.

(16) A provisioning center agent shall not, for monetary

compensation, refer an individual to a physician.

(17) A provisioning center or safety compliance facility shall

not permit a physician to advertise in a dispensary or safety

compliance facility or to hold any financial interest in or receive

any compensation from the provisioning center or secure cultivation

facility.

(18) A provisioning center agent or safety compliance facility

agent shall not transport or possess marihuana on behalf of the

provisioning center or safety compliance facility in or upon a

motor vehicle or any self-propelled vehicle designed for land

travel unless all of the following conditions are met:

(a) The agent possesses a document signed and dated by a

manager or operator of the provisioning center or safety compliance

facility that employs the agent, stating the agent’s name, the date

the marihuana will be transported, the approximate amount of

marihuana transported, and the name of the provisioning center or

safety compliance facility from which the marihuana is being

transported.

(b) The marihuana is located in 1 or more of the following:

(i) An enclosed locked container, such as a safe, briefcase, or

other case.

(ii) The trunk of the vehicle.

(iii) A space that is inaccessible from the passenger

compartment of the vehicle.

Sec. 8. (1) A provisioning center that violates section 7(1)

to (3) is responsible for a state civil infraction and may be

ordered to pay a civil fine of not more than $5,000.00. A city or

county in which the dispensary, secure cultivation facility, or

safety compliance facility operates in violation of section 7(1) to

(3) may petition the court for an injunction to close the

provisioning center or facility.

(2) A violation of section 7(4) to (11) is a state civil

infraction for which a violator may be ordered to pay a civil fine

of not more than $1,000.00.

(3) A person who transfers marihuana in violation of section

7(12) to (14) or who works in violation of section 7(15) is not

exempt from arrest, prosecution, or criminal or other penalties

under section 3 or 4.

(4) A person who violates section 7(16) or (17) is responsible

for a civil infraction and may be ordered to pay a civil fine of

not more than $1,000.00.

(5) A person who violates section 7(18) is guilty of a

misdemeanor punishable by imprisonment for not more than 30 days or

a fine of not more than $500.00, or both.

Sec. 9. (1) Municipalities are encouraged to establish

procedures to suspend or revoke a registration, license, or other

permission to operate if a provisioning center knowingly or

negligently allows marihuana to be dispensed to a person who is not

a registered qualifying patient or registered primary caregiver or

if a provisioning center or safety compliance facility commits

multiple or serious violations of this act or municipal

regulations.

(2) Nothing in this act requires the violation of federal law

or purports to give immunity from prosecution under federal law.

(3) Nothing in this act poses an obstacle to federal

enforcement of federal law.

Sec. 10. (1) Except as provided in this act, a visiting

qualifying patient, registered qualifying patient, or registered

primary caregiver who supplies, sells, transfers, or delivers

marihuana seeds to a provisioning center that is registered,

licensed, or otherwise allowed by the municipality in which it

operates in accordance with this act is not subject to any of the

following for engaging in that activity:

(a) Criminal penalties under state law or local ordinance.

(b) State or local civil prosecution.

(c) Search or inspection, except for an inspection authorized

by the municipality.

(d) Seizure.

(e) Any sanction, including disciplinary action or denial of a

right or privilege, by a business or occupational or professional

licensing board or bureau.

(2) Except as provided in this act, a registered qualifying

patient is not subject to any of the inspections or sanctions

listed in subsection (1)(a) to (e) for any of the following:

(a) Purchasing or acquiring not more than 2.5 ounces of usable

marihuana from 1 or more provisioning centers within a 10-day

period.

(b) Supplying, selling, transferring, or delivering marihuana

to a provisioning center that is registered, licensed, or otherwise

allowed by the municipality in which it operates if all of the

following conditions are met:

(i) The marihuana was produced by the registered qualifying

patient or registered primary caregiver.

(ii) The municipality in which the provisioning center operates

allows the transfer of marihuana from a registered qualifying

patient to a dispensary.

(iii) The amount of marihuana transferred does not exceed the

amount of marihuana the registered qualifying patient is allowed to

possess.

(3) Except as provided in this act, a registered primary

caregiver is not subject to any of the inspections or sanctions

listed in subsection (1)(a) to (e) for any of the following:

(a) Purchasing or acquiring from 1 or more provisioning

centers not more than 2.5 ounces of usable marihuana in a 10-day

period for a registered qualifying patient who has designated the

registered primary caregiver on his or her application to the state

department administering the medical marihuana program.

(b) Supplying, selling, transferring, or delivering marihuana

to a provisioning center that is registered, licensed, or otherwise

allowed by the municipality in which it operates in compliance with

all of the following:

(i) The marihuana is produced by the registered primary

caregiver and is excess marihuana above the amount necessary to

satisfy the registered qualifying patients the primary caregiver is

designated to serve.

(ii) The municipality in which the provisioning center is

located allows the transfer of marihuana from a registered primary

caregiver to a provisioning center.

(iii) The amount of marihuana transferred does not exceed the

amount of marihuana the registered primary caregiver is allowed to

possess.