September 17, 2015, Introduced by Reps. Irwin, Singh, Robinson, Hovey-Wright, Chang, Hoadley and Sarah Roberts and referred to the Committee on Judiciary.
A bill to decriminalize and regulate marihuana cultivation,
production, testing, sale, possession, and use for nonmedical
purposes; to provide for licensing of certain marihuana facilities
and stores; to authorize collection of fees; to impose an excise
tax on marihuana transfers by a marihuana cultivation facility; to
provide for the powers and duties of certain state and local
governmental officers and agencies; to authorize local units of
government to adopt limited regulation of marihuana facilities and
stores; and to require the promulgation of rules.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) This act shall be known and may be cited as the
"marihuana legalization and regulation act".
(2) The cultivation, processing, testing, possession, and use
of marihuana for nonmedical purposes are decriminalized and
regulated under the this act for use by individuals 21 years of age
or older in the manner provided in this act.
Sec. 2. As used in this act, and unless the context otherwise
requires:
(a) "Consumer" means an individual 21 years of age or older
who purchases marihuana or marihuana products for personal use by
himself or herself or another individual 21 years of age or older,
but not for resale.
(b) "Department" means the department of licensing and
regulatory affairs.
(c) "Industrial hemp" means a plant of the genus Cannabis and
any part of that plant, whether growing or not, with a delta-9
tetrahydrocannabinol concentration that does not exceed 0.3% on a
dry weight basis.
(d) "License" means an exemption from arrest, prosecution,
forfeiture, or penalty in any manner by this state or local
authority for conduct identified in this act.
(e) "Locality" means a county, city, village, or township.
(f) "Marihuana" means any part of the plant of the genus
Cannabis whether growing or not, its seeds, the resin extracted
from any part of the plant, and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or its
resin, including marihuana concentrate. Marihuana does not include
industrial hemp, the fiber produced from the stalks of the plant,
oil or cake made from the seeds of the plant, sterilized seed of
the plant that is incapable of germination. The weight of any other
ingredient combined with marihuana to prepare topical or oral
administrations, food, drink, or other products is not included
when determining the weight of marihuana.
(g) "Marihuana cultivation facility" means an entity licensed
to cultivate, prepare, or package and sell marihuana to marihuana
distributors, retail marihuana stores, marihuana product
manufacturing facilities, or other marihuana cultivation
facilities, but not to consumers.
(h) "Marihuana distributor" means an entity licensed to
purchase marihuana from a marihuana cultivation facility, to
purchase marihuana and marihuana products from a marihuana product
manufacturing facility, and to sell marihuana and marihuana
products to a retail marihuana store.
(i) "Marihuana establishment" means a marihuana cultivation
facility, a marihuana testing facility, a marihuana product
manufacturing facility, a marihuana distributor, or a retail
marihuana store.
(j) "Marihuana product manufacturing facility" means an entity
licensed to purchase marihuana; manufacture, prepare, and package
marihuana products; and sell marihuana and marihuana products to
other marihuana product manufacturing facilities, to marihuana
distributors, and to retail marihuana stores, but not to consumers.
(k) "Marihuana products" means products containing
concentrated marihuana and products that are composed of marihuana
and other ingredients and are intended for use or consumption, such
as, but not limited to, edible products, ointments, and tinctures.
(l) "Marihuana testing facility" means an entity licensed to
analyze and certify the safety and potency of marihuana.
(m) "Medical marihuana act" means the Michigan medical
marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430, and any other
law of this state regulating marihuana for medical use.
(n) "Medical marihuana center" means an entity licensed by a
state agency to sell marihuana and marihuana products for use as
provided in the medical marihuana act.
(o) "Retail marihuana store" means an entity licensed to
purchase marihuana from marihuana cultivation facilities and
marihuana and marihuana products from marihuana distributors or
marihuana product manufacturing facilities and to sell marihuana
and marihuana products to consumers.
(p) "Unreasonably impracticable" means that the measures
necessary to comply with the regulations require such a high risk
or investment of money, time, or any other resource or asset that a
reasonably prudent businessperson would not engage in the operation
of a marihuana establishment.
Sec. 3. Notwithstanding any other law, the following acts
performed by an individual 21 years of age or older without
remuneration are not unlawful, are not an offense under the law of
this state or any locality within this state, are not grounds for
seizing or forfeiting property, and are not grounds for arrest,
prosecution, or penalty in any manner:
(a) Possessing, using, displaying, purchasing, or transporting
marihuana accessories or 1 ounce or less of marihuana.
(b) Possessing, growing, processing, or transporting 12 or
fewer marihuana plants that exceed 12 inches in either height or
diameter and possessing the marihuana derived from those plants on
the premises where the plants are grown. This subdivision applies
only if the plants are grown in an enclosed, locked space and not
openly or publicly displayed.
(c) Transferring 1 ounce or less of marihuana to an individual
who is 21 years of age or older.
(d) Consuming marihuana, if the consumption is not conducted
openly and publicly or in a manner that endangers others.
(e) Possessing, growing, receiving, or transferring marihuana
seed stock or any number of immature plants less than 12 inches in
height and diameter that do not have buds or flowers.
(f) Assisting another individual who is 21 years of age or
older in any of the acts described in subdivisions (a) to (e).
Sec. 4. (1) Notwithstanding any other provision of law, the
following acts performed by persons 21 years of age or older in
accordance with this act are not unlawful, are not an offense under
the law of this state or any locality within this state, are not
grounds for seizing or forfeiting property, and are not grounds for
arrest, prosecution, or penalty in any manner:
(a) Manufacturing, possessing, or purchasing marihuana
accessories or selling marihuana accessories to an individual who
is 21 years of age or older.
(b) Possessing, displaying, or transporting marihuana or
marihuana products; purchasing marihuana from a marihuana
cultivation facility; purchasing marihuana or marihuana products
from a marihuana product manufacturing facility; or selling
marihuana or marihuana products to consumers, if the person
conducting the activity under this subdivision has obtained a
current, valid license to operate a retail marihuana store or as a
marihuana distributor or is acting in his or her capacity as an
owner, employee, or agent of a licensed retail marihuana store or
marihuana distributor.
(c) Cultivating, harvesting, processing, packaging,
transporting, displaying, or possessing marihuana; delivering or
transferring marihuana to a marihuana testing facility; selling
marihuana to another marihuana cultivation facility, a marihuana
product manufacturing facility, a marihuana distributor, or a
retail marihuana store; or purchasing marihuana from another
marihuana cultivation facility, if the person conducting any
activity under this subdivision has obtained a current, valid
license to operate a marihuana cultivation facility or is acting in
his or her capacity as an owner, employee, or agent of a licensed
marihuana cultivation facility.
(d) Packaging, processing, transporting, manufacturing,
displaying, or possessing marihuana or marihuana products;
delivering or transferring marihuana or marihuana products to a
marihuana testing facility; selling marihuana or marihuana products
to a marihuana distributor, a retail marihuana store, or another
marihuana product manufacturing facility or a marihuana
distributor; purchasing marihuana from a marihuana cultivation
facility; or purchasing marihuana or marihuana products from
another marihuana product manufacturing facility, if the person
conducting any activity under this subdivision has obtained a
current, valid license to operate a marihuana product manufacturing
facility or is acting in his or her capacity as an owner, employee,
or agent of a licensed marihuana product manufacturing facility.
(e) Possessing, cultivating, processing, repackaging, storing,
transporting, displaying, transferring or delivering marihuana or
marihuana products if the person has obtained a current, valid
license to operate a marihuana testing facility or is acting in his
or her capacity as an owner, employee, or agent of a licensed
marihuana testing facility.
(f) Leasing or otherwise allowing the use of property owned,
occupied, or controlled by any person, corporation, or other entity
for any of the activities conducted lawfully in accordance with
subdivisions (a) to (e).
(2) To ensure the most secure, reliable, and accountable
system for producing and distributing marihuana and marihuana
products in accordance with this act, the department shall use the
following criteria as primary considerations in any competitive
application by applicants for a license under this act:
(a) Prior experience producing or distributing marihuana or
marihuana products under this act in the locality in which the
applicant seeks to operate a marihuana establishment.
(b) Consistent compliance with this act and relevant state law
and administrative rules during the experience described in
subdivision (a).
(3) The department shall not require a consumer to provide a
retail marihuana store with personal information other than
government-issued identification to determine the consumer's age
and shall not require a retail marihuana store to acquire or record
personal information about consumers other than information
typically acquired in a financial transaction conducted at a retail
liquor store.
Sec. 5. Marihuana sold or otherwise transferred by a marihuana
cultivation facility to a marihuana product manufacturing facility,
a marihuana distributor, or a retail marihuana store is subject to
an excise tax. The excise tax rate is 5% in 2017 and increases by
1% each successive January 1 until it reaches 10%. The department
of treasury shall establish procedures for collecting the excise
tax. After depositing into the general fund an amount equal to the
department's necessary administrative costs that exceed the amount
collected in license application fees, 40% of the balance of the
proceeds of the excise tax shall be deposited in the school aid
fund to be used exclusively for early childhood education, 40%
shall be deposited in the Michigan transportation fund, and 20%
shall be allocated to the department of health and human services
to be used exclusively for substance abuse treatment programs.
Marihuana intended for sale at medical marihuana centers is exempt
from the excise tax under this section.
Sec. 6. A locality may adopt an ordinance that does not
conflict with this act or administrative rules implementing this
act. The ordinance may govern the time, place, manner, and number
of marihuana establishments. The ordinance shall designate a
violation of the ordinance as a municipal civil infraction and
provide a civil fine for that violation. A locality may prohibit
the operation of marihuana cultivation facilities, marihuana
product manufacturing facilities, marihuana testing facilities, or
retail marihuana stores by ordinance or an initiated or referred
measure. An initiated or referred measure to prohibit the operation
of marihuana cultivation facilities, marihuana product
manufacturing facilities, marihuana testing facilities, or retail
marihuana stores must be submitted to the voters at a general
election.
Sec. 7. Each application for a new annual license to operate a
marihuana establishment or annual license renewal shall be
submitted to the department. The department shall do all of the
following:
(a) Begin accepting and processing applications on January 1,
2017.
(b) Immediately upon receipt, forward a copy of the
application to the locality in which the applicant desires to
operate the marihuana establishment. The application fee shall be
deposited into the state treasury, and upon appropriation, 1/2 of
the fee shall be paid to the locality in which the establishment
will be located.
(c) Issue an annual license to the applicant between 45 and 90
days after receipt of an application unless the department finds
the applicant is not in compliance with rules adopted under section
10 or the department is notified by the relevant locality that the
applicant is not in compliance with an ordinance or initiated
measure adopted under section 6 and in effect at the time of
application. If a locality has enacted a numerical limit on the
number of marihuana establishments and a greater number of
applicants seek licenses, the department shall solicit and consider
input from the locality as to the locality's preference or
preferences for licensure.
(d) If the department makes a finding of noncompliance or
otherwise does not issue a license under subdivision (c), promptly
notify the applicant in writing of the specific reason for failure
to issue the license.
Sec. 8. (1) This act does not require an employer to permit or
accommodate the use, consumption, possession, transfer, display,
transportation, sale, or growing of marihuana in the workplace or
prohibit an employer from adopting a policy restricting employee
use of marihuana.
(2) This act does not authorize driving or operating under the
influence of marihuana or driving while impaired by marihuana or
supersede or restrict state law related to driving under the
influence of marihuana or driving while impaired by marihuana.
(3) This act does not authorize the transfer of marihuana or
marihuana accessories, with or without remuneration, to an
individual under the age of 21 or allow an individual under the age
of 21 to purchase, possess, use, transport, grow, or consume
marihuana.
(4) This act does not prohibit a person, employer, school,
hospital, detention facility, corporation, or any other entity that
occupies, owns, or controls private property from prohibiting or
otherwise regulating the possession, consumption, use, display,
transfer, distribution, sale, transportation, or growing of
marihuana on or in that private property.
Sec. 9. This act does not do any of the following:
(a) Limit any privileges or rights of a medical marihuana
patient, primary caregiver, or licensed entity as provided in the
medical marihuana act.
(b) Authorize a medical marihuana center to distribute
marihuana to a person who is not permitted to receive that
distribution under the medical marihuana act.
(c) Authorize a medical marihuana center to purchase marihuana
or marihuana products in a manner or from a source not authorized
under the medical marihuana act.
(d) Authorize any medical marihuana center operating under the
medical marihuana act to operate on the same premises as a retail
marihuana store.
(e) Discharge a state department, agency, board, or commission
from any statutory and constitutional duty to regulate medical
marihuana under the medical marihuana act.
Sec. 10. Not later than January 1, 2017, the department shall
adopt rules necessary to implement this act under the
administrative procedure act of 1969, 1969 PA 306, MCL 24.201 to
301.328. The rules shall not prohibit the operation of marihuana
establishments, either expressly or through regulations that are
unreasonably impracticable. The rules shall include:
(a) Procedures for issuing, renewing, suspending, and revoking
a license to operate a marihuana establishment.
(b) A schedule of application, licensing, and renewal fees. An
original application fee shall not exceed $5,000.00, and a renewal
application fee shall not exceed $500.00, adjusted annually by the
department for inflation, unless the department determines that a
greater fee is necessary to carry out its responsibilities under
this act.
(c) Qualifications for licensure that are directly and
demonstrably related to the operation of a marihuana establishment,
such as the applicant's business experience and tax payment status.
(d) Security requirements for marihuana establishments.
(e) Requirements to prevent the sale or diversion of marihuana
and marihuana products to individuals under the age of 21.
(f) Labeling requirements for marihuana and marihuana products
sold or distributed by a marihuana establishment to ensure that
consumers are informed and protected.
(g) Health and safety regulations and standards for the
manufacture of marihuana products and the cultivation of marihuana.
(h) Reasonable restrictions on advertising and displaying
marihuana and marihuana products.
(i) A schedule of civil fines for violations of this act or
rules implementing this act, based on the severity of the
violation. Any civil fine shall not exceed $1,000.00.
Sec. 11. A person who violates this act is responsible for a
civil fine in an amount provided in the schedule adopted under
section 10(i).
Sec. 12. Except as otherwise indicated in this act, this act
supersedes a conflicting state statute or administrative rule and a
local charter, ordinance, or resolution.