MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Drug Policy

By: Representative Waldo

House Bill 1753

AN ACT TO BRING FORWARD SECTIONS 41-137-3, 41-137-5, 41-137-7, 41-137-9, 41-137-11, 41-137-13, 41-137-15, 41-137-17, 41-137-19, 41-137-21, 41-137-23, 41-137-25, 41-137-27, 41-137-29, 41-137-31, 41-137-33, 41-137-35, 41-137-37, 41-137-39, 41-137-41, 41-137-43, 41-137-45, 41-137-47, 41-137-49, 41-137-51, 41-137-53, 41-137-55, 41-137-57, 41-137-59, 41-137-61, 41-137-63, 41-137-65 AND 41-137-67, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE MISSISSIPPI MEDICAL CANNABIS ACT, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 41-137-3, Mississippi Code of 1972, is brought forward as follows:

     41-137-3.  For purposes of this chapter, unless the context requires otherwise, the following terms shall have the meanings ascribed herein:

          (a)  "Artificially derived cannabinoid" means a chemical substance that is created by a chemical reaction that changes the molecular structure of any chemical substance derived from the plant Cannabis family Cannabaceae.  Such term shall not include:

              (i)  A naturally occurring chemical substance that is separated from the plant Cannabis family Cannabaceae by a chemical or mechanical extraction process;

              (ii)  Cannabinoids that are produced by decarboxylation from a naturally occurring cannabinoid acid without the use of a chemical catalyst; or

              (iii)  Any other chemical substance identified by MDOH.

          (b)  "Allowable amount of medical cannabis" means an amount not to exceed the maximum amount of Mississippi Medical Cannabis Equivalency Units ("MMCEU").

          (c)  "Bona fide practitioner-patient relationship" means:

              (i)  A practitioner and patient have a treatment or consulting relationship, during the course of which the practitioner, within his or her scope of practice, has completed an in-person assessment of the patient's medical history and current mental health and medical condition and has documented their certification in the patient's medical file;

              (ii)  The practitioner has consulted in person with the patient with respect to the patient's debilitating medical condition; and

              (iii)  The practitioner is available to or offers to provide follow-up care and treatment to the patient.

          (d)  "Cannabis" means all parts of the plant of the genus cannabis, the flower, the seeds thereof, 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 whole plant extracts.  Such term shall not mean cannabis-derived drug products approved by the federal Food and Drug Administration under Section 505 of the Federal Food, Drug, and Cosmetic Act.

          (e)  "Cannabis cultivation facility" means a business entity licensed and registered by the Mississippi Department of Health that acquires, grows, cultivates and harvests medical cannabis in an indoor, enclosed, locked and secure area.

          (f)  "Cannabis disposal entity" means a business licensed and registered by the Mississippi Department of Health that is involved in the commercial disposal or destruction of medical cannabis.

          (g)  "Cannabis processing facility" means a business entity that is licensed and registered by the Mississippi Department of Health that:

              (i)  Acquires or intends to acquire cannabis from a cannabis cultivation facility;

              (ii)  Possesses cannabis with the intent to manufacture a cannabis product;

              (iii)  Manufactures or intends to manufacture a cannabis product from unprocessed cannabis or a cannabis extract; and

              (iv)  Sells or intends to sell a cannabis product to a medical cannabis dispensary, cannabis testing facility or cannabis research facility.

          (h)  "Cannabis products" means cannabis flower, concentrated cannabis, cannabis extracts and products that are infused with cannabis or an extract thereof and are intended for use or consumption by humans.  The term includes, without limitation, edible cannabis products, beverages, topical products, ointments, oils, tinctures and suppositories that contain tetrahydrocannabinol (THC) and/or cannabidiol (CBD) except those products excluded from control under Sections 41-29-113 and 41-29-136.

          (i)  "Cannabis research facility" or "research facility" means a research facility at any university or college in this state or an independent entity licensed and registered by the Mississippi Department of Health pursuant to this chapter that acquires cannabis from cannabis cultivation facilities and cannabis processing facilities in order to research cannabis, develop best practices for specific medical conditions, develop medicines and provide commercial access for medical use.

          (j)  "Cannabis testing facility" or "testing facility" means an independent entity licensed and registered by the Mississippi Department of Health that analyzes the safety and potency of cannabis.

          (k)  "Cannabis transportation entity" means an independent entity licensed and registered by the Mississippi Department of Health that is involved in the commercial transportation of medical cannabis.

          (l)  "Cannabis waste" means plant debris of the plant of the genus cannabis, including dead plants and all unused plant parts.  This term shall not include seeds, roots, stems and stalks.

          (m)  "Cannabinoid" means any of the chemical compounds that are the active constituents derived from THC.

          (n)  "Canopy" means the total surface area within a cultivation area that is dedicated to the cultivation of flowering cannabis plants.  The surface area of the plant canopy must be calculated in square feet and measured and must include all of the area within the boundaries where the cultivation of the flowering cannabis plants occurs.  If the surface area of the plant canopy consists of noncontiguous areas, each component area must be separated by identifiable boundaries.  If a tiered or shelving system is used in the cultivation area the surface area of each tier or shelf must be included in calculating the area of the plant canopy.  Calculation of the area of the plant canopy may not include the areas within the cultivation area that are used to cultivate immature cannabis plants and seedlings, prior to flowering, and that are not used at any time to cultivate mature cannabis plants.

          (o)  "Cardholder" means a registered qualifying patient or a registered designated caregiver who has been issued and possesses a valid registry identification card.

          (p)  "Chronic pain" means a pain state in which the cause of the pain cannot be removed or otherwise treated, and which in the generally accepted course of medical practice, no relief or cure of the cause of the pain is possible, or none has been found after reasonable efforts by a practitioner.

          (q)  "Concentrate" means a substance obtained by separating cannabinoids from cannabis by:

              (i)  A mechanical extraction process;

              (ii)  A chemical extraction process using a nonhydrocarbon-based or other solvent, such as water, vegetable glycerin, vegetable oils, animal fats, food-grade ethanol or steam distillation; or

              (iii)  A chemical extraction process using the hydrocarbon-based solvent carbon dioxide, provided that the process does not involve the use of high heat or pressure.

          (r)  "Debilitating medical condition" means:

              (i)  Cancer, Parkinson's disease, Huntington's disease, muscular dystrophy, glaucoma, spastic quadriplegia, positive status for human immunodeficiency virus (HIV), acquired immune deficiency syndrome (AIDS), hepatitis, amyotrophic lateral sclerosis (ALS), Crohn's disease, ulcerative colitis, sickle-cell anemia, Alzheimer's disease, agitation of dementia, post-traumatic stress disorder (PTSD), autism, pain refractory to appropriate opioid management, diabetic/peripheral neuropathy, spinal cord disease or severe injury, or the treatment of these conditions;

              (ii)  A chronic, terminal or debilitating disease or medical condition, or its treatment, that produces one or more of the following:  cachexia or wasting syndrome, chronic pain, severe or intractable nausea, seizures, or severe and persistent muscle spasms, including, but not limited to, those characteristic of multiple sclerosis; or

              (iii)  Any other serious medical condition or its treatment added by the Mississippi Department of Health, as provided for in Section 41-137-17.

          (s)  "Designated caregiver" means a person who:

              (i)  Has agreed to assist with a registered qualifying patient's medical use of medical cannabis;

              (ii)  Assists no more than five (5) registered qualifying patients with their medical use of medical cannabis, unless the designated caregiver's registered qualifying patients each reside in or are admitted to a health care facility or facility providing residential care services or day care services where the designated caregiver is employed;

              (iii)  Is at least twenty-one (21) years of age unless the person is the parent or legal guardian of each qualifying patient the person assists; and

              (iv)  Has not been convicted of a disqualifying felony offense.

          (t)  "Disqualifying felony offense" means:

              (i)  A conviction for a crime of violence, as defined in Section 97-3-2;

              (ii)  A conviction for a crime that was defined as a violent crime in the law of the jurisdiction in which the offense was committed, and that was classified as a felony in the jurisdiction where the person was convicted; or

              (iii)  A conviction for a violation of a state or federal controlled substances law that was classified as a felony in the jurisdiction where the person was convicted, including the service of any term of probation, incarceration or supervised release within the previous five (5) years and the offender has not committed another similar offense since the conviction.  Under this subparagraph (iii), a disqualifying felony offense shall not include a conviction that consisted of conduct for which this chapter would likely have prevented the conviction but for the fact that the conduct occurred before February 2, 2022.

          (u)  "Edible cannabis products" means products that:

              (i)  Contain or are infused with cannabis or an extract thereof;

              (ii)  Are intended for human consumption by oral ingestion; and

              (iii)  Are presented in the form of foodstuffs, beverages, extracts, oils, tinctures, lozenges and other similar products.

          (v)  "Entity" means a corporation, general partnership, limited partnership or limited liability company that has been registered with the Secretary of State as applicable.

          (w)  "MMCEU" means Mississippi Medical Cannabis Equivalency Unit.  One unit of MMCEU shall be considered equal to:

              (i)  Three and one-half (3.5) grams of medical cannabis flower;

              (ii)  One (1) gram of total THC in a medical cannabis concentrate; or

              (iii)  One (1) gram of total THC in an infused product.

          (x)  "MDOH" means the Mississippi Department of Health.

          (y)  "MDOR" means the Mississippi Department of Revenue.

          (z)  "Medical cannabis" means cannabis, cannabis products and edible cannabis that are intended to be used by registered qualifying patients as provided in this chapter.

          (aa)  "Medical cannabis dispensary" or "dispensary" means an entity licensed and registered with the MDOR that acquires, possesses, stores, transfers, sells, supplies or dispenses medical cannabis, equipment used for medical cannabis, or related supplies and educational materials to cardholders.

          (bb)  "Medical cannabis establishment" means a cannabis cultivation facility, cannabis processing facility, cannabis testing facility, cannabis dispensary, cannabis transportation entity, cannabis disposal entity or cannabis research facility licensed and registered by the appropriate agency.

          (cc)  "Medical cannabis establishment agent" means an owner, officer, board member, employee, volunteer or agent of a medical cannabis establishment.

          (dd)  "Medical use" includes the acquisition, administration, cultivation, processing, delivery, harvest, possession, preparation, transfer, transportation, or use of medical cannabis or equipment relating to the administration of medical cannabis to treat or alleviate a registered qualifying patient's debilitating medical condition or symptoms associated with the patient's debilitating medical condition.  The term "medical use" does not include:

              (i)  The cultivation of cannabis unless the cultivation is done by a cannabis cultivation facility; or

              (ii)  The extraction of resin from cannabis by mechanical or chemical extraction unless the extraction is done by a cannabis processing facility.

          (ee)  "Nonresident cardholder" means a person who:

              (i)  Has been diagnosed with a debilitating medical condition by a practitioner in his or her respective state or territory, or is the parent, guardian, conservator or other person with authority to consent to the medical use of medical cannabis by a person who has been diagnosed with a debilitating medical condition;

              (ii)  Is not a resident of Mississippi or who has been a resident of Mississippi for less than forty-five (45) days; and

              (iii)  Has submitted any documentation required by MDOH rules and regulations and has received confirmation of registration.

          (ff)  "Practitioner" means a physician, certified nurse practitioner, physician assistant or optometrist who is licensed to prescribe medicine under the licensing requirements of their respective occupational boards and the laws of this state.  In relation to a nonresident cardholder, the term means a physician, certified nurse practitioner, physician assistant or optometrist who is licensed to prescribe medicine under the licensing requirements of their respective occupational boards and under the laws of the state or territory in which the nonresident patient resides.  For registered qualifying patients who are minors, "practitioner" shall mean a physician or doctor of osteopathic medicine who is licensed to prescribe medicine under the licensing requirements of their respective occupational boards and the laws of this state.

          (gg)  "Public place" means a church or any area to which the general public is invited or in which the general public is permitted, regardless of the ownership of the area, and any area owned or controlled by a municipality, county, state or federal government, including, but not limited to, streets, sidewalks or other forms of public transportation.  Such term shall not mean a private residential dwelling.

          (hh)  "Qualifying patient" means a person who has been diagnosed by a practitioner as having a debilitating medical condition and has been issued a written certification.

          (ii)  "Registry identification card" means a document issued by the MDOH that identifies a person as a registered qualifying patient, nonresident registered qualifying patient or registered designated caregiver.

          (jj)  "School" means an institution for the teaching of children, consisting of a physical location, whether owned or leased, including instructional staff members and students, and which is in session each school year.  This definition shall include, but not be limited to, public, private, church and parochial programs for kindergarten, elementary, junior high and high schools.  Such term shall not mean a home instruction program.

          (kk)  "Scope of practice" means the defined parameters of various duties, services or activities that may be provided or performed by a certified nurse practitioner as authorized under Sections 73-15-5 and 73-15-20, by an optometrist as authorized under Section 73-19-1, by a physician as authorized under Section 73-25-33, or by a physician assistant under Section 73-26-5, and rules and regulations adopted by the respective licensing boards for those practitioners.

          (ll)  "THC" or "Tetrahydrocannabinol" means any and all forms of tetrahydrocannabinol that are contained naturally in the cannabis plant, as well as synthesized forms of THC and derived variations, derivatives, isomers and allotropes that have similar molecular and physiological characteristics of tetrahydrocannabinol, including, but not limited to, THCA, THC Delta 9, THC Delta 8, THC Delta 10 and THC Delta 6.

          (mm)  "Written certification" means a form approved by the MDOH, signed and dated by a practitioner, certifying that a person has a debilitating medical condition.  A written certification shall include the following:

                   (i)  The date of issue and the effective date of the recommendation;

                   (ii)  The patient's name, date of birth and address;

                   (iii)  The practitioner's name, address, and federal Drug Enforcement Agency number; and

                   (iv)  The practitioner's signature. 

     SECTION 2.  Section 41-137-5, Mississippi Code of 1972, is brought forward as follows:

     41-137-5.  (1)  No person shall be authorized to use medical cannabis in this state unless the person (a) has been diagnosed by a practitioner, with whom the person has a bona fide practitioner-patient relationship within his or her scope of practice, as having a debilitating medical condition for which the practitioner believes, in his or her professional opinion, that the person would likely receive medical or palliative benefit from the medical use of medical cannabis to treat or alleviate the person's debilitating medical condition or symptoms associated with the person's debilitating medical condition, (b) has received a written certification of that diagnosis from the practitioner, and (c) has been issued a registry identification card from the MDOH under Section 41-137-23.  A person who has been diagnosed by a practitioner as specified in paragraph (a) of this subsection shall be a qualifying patient, and the practitioner who has diagnosed the patient shall document that diagnosis with a written certification.  However, nothing herein shall require a practitioner to issue a written certification.

     (2)  A written certification shall:

          (a)  Affirm that it is made in the course of a bona fide practitioner-patient relationship; 

          (b)  Remain current for twelve (12) months, unless the practitioner specifies a shorter period of time;

          (c)  Be issued after an in-person assessment of the patient by a practitioner, or after a telemedicine evaluation for patients who are homebound or bedbound as certified by a practitioner with whom the patient has a bona fide practitioner-patient relationship within his or her scope of practice other than the practitioner making the written certification.  For purposes of this paragraph (c), an individual is homebound or bedbound if such individual is physically unable to leave his or her residence without another person's aid because the individual has lost the capacity of independent transportation due to a medical, physical, or mental health condition or infirmity as documented in writing by a practitioner who has a bona fide practitioner-patient relationship with the patient;

          (d)  Only be issued on behalf of a minor when the minor's parent or guardian is present and provides signed consent; and

          (e)  Be limited to the allowable amount of cannabis in a thirty-day period..

     (3)  No state agency, department, political subdivision or board shall require a practitioner to require a patient to submit to a drug test as a condition to receiving a certification for a registry identification card.  However, a practitioner may require a drug test from a patient that is within his or her scope of practice.

     (4)  After a practitioner has issued a written certification to a qualifying patient, a practitioner may assist the patient in registering for a registry identification card with the Department of Health, in a manner provided by regulations of the Department of Health.

     (5)  After a qualifying patient receives a written certification from a practitioner, the patient shall be required to make a follow-up visit with the practitioner not less than six (6) months after the date of issuance of the certification for the practitioner to evaluate and determine the effectiveness of the patient's medical use of medical cannabis to treat or alleviate the patient's debilitating medical condition or symptoms associated with the patient's debilitating medical condition.  Qualifying patients may make a follow-up visit with a different practitioner than the practitioner who originally issued their written certification, provided that such practitioner is otherwise registered and acting within their scope of practice and  the provisions of this chapter.

     (6)  Before dispensing medical cannabis to a cardholder, the dispensary from which the cardholder is obtaining medical cannabis shall verify the identity of the cardholder and the authority of the cardholder to use medical cannabis as provided in Section 41-137-39 and shall determine the maximum amount of medical cannabis that a cardholder is eligible to receive and the amount of medical cannabis that the cardholder has received from all dispensaries during a specified period of time using the statewide seed-to-sale tracking system under Section 41-137-11.

     (7)  (a)  A practitioner shall be registered to issue written certifications to qualifying patients by completing the required application process as set forth by the MDOH.  The MDOH shall require a practitioner to complete a minimum of eight (8) hours of continuing education in medical cannabis in order to issue written certifications.  After the first year of registration, these practitioners shall complete five (5) hours of continuing education in medical cannabis annually to maintain this registration.

          (b)  A practitioner shall not be required to have any additional qualifications to be authorized to certify a qualifying patient for a registry identification card, other than such requirements for practitioners as provided under the Mississippi Medical Cannabis Act.

          (c)  A practitioner shall not be required to be registered to certify patients with any state agency or board other than the MDOH.

     (8)  Only physicians and doctors of osteopathic medicine may issue written certifications to registered qualifying patients who are minors.

     (9)  The requirements of this section shall not apply to a person who is authorized to purchase topical cannabis provided under Section 41 137 39(22), and such persons may possess and use such products without being in violation of this chapter.

     SECTION 3.  Section 41-137-7, Mississippi Code of 1972, is brought forward as follows:

     41-137-7.  (1)  The MDOH shall have the ultimate authority for oversight of the administration of the medical cannabis program, and the MDOH shall coordinate the activities of the MDOH and MDOR under the provisions of this chapter in order to best effectuate the purpose and intent of this chapter.

     (2)  The MDOH may contract with other governmental agencies and public or private third parties to assist the MDOH with carrying out any of the responsibilities delegated to the MDOH under this section.  However, the MDOH shall be ultimately responsible for the performance of any responsibilities that are exercised by any agency or third party with which the MDOH has contracted under the authority of this section.

     (3)  The MDOH shall be responsible for:

          (a)  The licensing, oversight and inspection of cannabis testing facilities and cannabis research facilities;

          (b)  The licensing of cannabis cultivation facilities, cannabis processing facilities, cannabis transportation entities and cannabis disposal entities;

          (c)  The application and licensing of registry identification cards for qualifying patients and designated caregivers; 

          (d)  The registering of practitioners in accordance with this chapter; and

          (e)  The selection, certification and oversight of the statewide seed-to-sale tracking system as provided for in Section 41-137-11.

     (4)  Unless otherwise provided herein, the MDOR shall be responsible for the licensing, inspection and oversight of medical cannabis dispensaries.

     (5)  The MDOR and MDOH shall accept applications for and award licenses according to their respective duties as provided for in this chapter, subject to the following:

          (a)  After one hundred twenty (120) days from February 2, 2022, the MDOH shall begin accepting applications, registering and licensing registry identification cards and practitioners.

          (b)  After one hundred twenty (120) days from February 2, 2022, the MDOH shall begin licensing and registering cannabis cultivation facilities, cannabis processing facilities, cannabis testing facilities, cannabis research facilities, cannabis disposal entities and cannabis transportation entities.  After one hundred fifty (150) days from February 2, 2022, the MDOR shall issue licenses for medical cannabis dispensaries as provided for in this chapter within thirty (30) days of receipt of the application from an applicant or within thirty (30) days after the initial one-hundred-fifty-day period, whichever is the later date.

     (6)  The MDOR and MDOH shall issue a registration certificate and a random ten-digit alphanumeric identification number to each licensed medical cannabis establishment, as applicable.

     (7)  After one hundred twenty (120) days from February 2, 2022, the MDOH shall issue licenses according to their respective duties as provided for in this chapter within thirty (30) days of receipt of the application from an applicant or within thirty (30) days after the initial one-hundred-twenty-day period, whichever is the later date.  After one hundred fifty (150) days from February 2, 2022, the MDOR shall issue licenses according to their respective duties as provided for in this chapter within thirty (30) days of receipt of the application from an applicant or within thirty (30) days after the initial one-hundred-fifty-day period, whichever is the later date.

     (8)  It is the intent of the Legislature that the MDOH and MDOR and any other state agency, as needed, shall cooperate and collaborate together to accomplish the purposes of this chapter.

     (9)  (a)  Subject to paragraph (b) of this subsection, the Department of Public Safety shall not be involved in or have any role regarding the administration, regulation or oversight of the medical cannabis program established under this chapter; however, this provision does not prohibit the department from carrying out any law enforcement activities that a law enforcement agency may exercise under this chapter or that the department may exercise under the authority of any other law.

          (b)  The Department of Public Safety may assist the MDOH in conducting background checks of individuals as required under this chapter.

     SECTION 4.  Section 41-137-9, Mississippi Code of 1972, is brought forward as follows:

     41-137-9.  (1)  There is a presumption that a registered qualifying patient is engaged in the medical use of medical cannabis under this chapter if the person is in possession of a registry identification card and an amount of medical cannabis that does not exceed the allowable amount of medical cannabis.  There is a presumption that a registered designated caregiver is assisting in the medical use of medical cannabis under this chapter if the person is in possession of a registry identification card and an amount of medical cannabis that does not exceed the allowable amount of medical cannabis.  These presumptions may be rebutted by evidence that conduct related to medical cannabis was not for the purpose of treating or alleviating a registered qualifying patient's debilitating medical condition or symptoms associated with the registered qualifying patient's debilitating medical condition under this chapter.

     (2)  Subject to the conditions, limitations, requirements and exceptions set forth in this chapter, the following activities related to medical cannabis shall be considered lawful:

          (a)  The purchase, transportation or possession of up to the allowable amount or medical use of medical cannabis;

          (b)  Financial reimbursement by a registered qualifying patient to the patient's registered designated caregiver for direct costs incurred by the registered designated caregiver for assisting with the registered qualifying patient's medical use of medical cannabis;

          (c)  Compensating a dispensary for goods or services provided;

          (d)  The provision, by a professional or occupational licensee, of advice or services related to medical cannabis activities allowed under this chapter, to the extent such advice or services meet or exceed the applicable professional or occupational standard of care;

          (e)  Providing or selling equipment used to ingest medical cannabis to a cardholder, nonresident cardholder or to a medical cannabis establishment;

          (f)  Acting as a designated caregiver to assist a registered qualifying patient with the act of using or administering medical cannabis;

          (g)  Activities by a medical cannabis establishment or a medical cannabis establishment agent that are allowed by its license and registration;

          (h)  Activities by a dispensary or a dispensary agent to possess, store or sell medical cannabis products, educational materials and products used to ingest medical cannabis to cardholders, nonresident cardholders and other dispensaries, or to purchase or otherwise acquire medical cannabis products from cannabis cultivation facilities, cannabis processing facilities, cannabis research facilities or other dispensaries;

          (i)  Activities by a cannabis cultivation facility, cannabis processing facility or agents of these facilities to:

              (i)  Possess, plant, propagate, cultivate, grow, harvest, produce, process, manufacture, compound, convert, prepare, pack, repack or store medical cannabis;

              (ii)  Purchase or otherwise acquire medical cannabis and cannabis products from medical cannabis establishments; or

              (iii)  Sell, supply or transfer medical cannabis products, equipment used to ingest medical cannabis, and related supplies and educational materials to other cannabis cultivation facilities, cannabis processing facilities or dispensaries.

          (j)  Activities by a cannabis research facility, a cannabis testing facility or agents of these facilities to:

              (i)  Purchase or otherwise acquire medical cannabis from medical cannabis establishments;

              (ii)  Possess, produce, process, compound, convert, prepare, pack, test, repack and store medical cannabis and cannabis products obtained from medical cannabis establishments; or

              (iii)  Sell, supply or transfer medical cannabis, educational materials and equipment used to ingest medical cannabis to cannabis cultivation facilities, cannabis processing facilities, cannabis testing facilities and cannabis research facilities.

          (k)  Activities by a cannabis transportation entity or a cannabis disposal entity to transport, supply, deliver, dispose of or destroy cannabis, as applicable.

     (3)  Any medical cannabis, cannabis product, equipment used to ingest medical cannabis, or other interest in or right to property that is possessed, owned or used in connection with the medical use of medical cannabis as authorized by this chapter, or acts incidental to such use, shall not be seized or forfeited.  This chapter shall not prevent the seizure or forfeiture of medical cannabis exceeding the allowable amounts of medical cannabis, nor shall it prevent seizure or forfeiture if the basis for the action is unrelated to the medical cannabis that is possessed, processed, transferred or used pursuant to this chapter.

     (4)  Possession of, or application for, a registry identification card shall not:

          (a)  Constitute probable cause or reasonable suspicion;

          (b)  Be used to support a search of the person or property of the person possessing or applying for the registry identification card; or

          (c)  Subject the person or property of the person to inspection by any governmental agency.

     (5)  It is the public policy of the State of Mississippi that contracts related to medical cannabis that are entered into by cardholders, medical cannabis establishments, medical cannabis establishment agents and those who allow property to be used by those persons, should be enforceable to the extent that those activities comply with the other provisions of this chapter.  It is the public policy of the State of Mississippi that no contract entered into by a cardholder, a medical cannabis establishment, or a medical cannabis establishment agent, or by a person who allows property to be used for activities that are authorized under this chapter, shall be unenforceable on the basis that activities related to cannabis are prohibited by federal law.

     (6)  An applicant for a professional or occupational license shall not be denied a license based on previous employment related to medical cannabis activities that are allowed under this chapter.

     SECTION 5.  Section 41-137-11, Mississippi Code of 1972, is brought forward as follows:

     41-137-11.  (1)  Each medical cannabis establishment shall use a statewide seed-to-sale tracking system certified by the MDOH to track medical cannabis from seed or immature plant stage until the medical cannabis is purchased by a registered qualifying patient or registered designated caregiver or destroyed.  Records entered into the seed-to-sale tracking system shall include each day's beginning inventory, harvests, acquisitions, sales, disbursements, remediations, disposals, transfers, ending inventory, and any other data necessary for inventory control records in the statewide seed-to-sale tracking system.  Each medical cannabis dispensary shall be responsible for ensuring that all medical cannabis sold or disbursed to a registered qualifying patient or registered designated caregiver is recorded in the seed-to-sale tracking system as a purchase by or on behalf of the applicable registered qualifying patients. 

     (2)  Amounts of medical cannabis shall be recorded in the following manner:

          (a)  For dried, unprocessed cannabis, in ounces or grams;

          (b)  For concentrates, in grams; or

          (c)  For infused products, by milligrams of THC.

     (3)  The seed-to-sale tracking system used by cannabis cultivation facilities, dispensaries, cannabis processing facilities, cannabis testing facilities, cannabis research facilities, cannabis transportation entities and cannabis disposal entities shall be capable of:

          (a)  Allowing those facilities and entities to interface with the statewide system such that a facility may enter and access information in the statewide system;

          (b)  Providing the MDOR and MDOH with access to all information stored in the system's database;

          (c)  Maintaining the confidentiality of all patient and caregiver data and records accessed or stored by the system such that all persons or entities other than the MDOR and MDOH may only access the information in the system that they are authorized by law to access;

          (d)  Producing analytical reports to the MDOR and MDOH regarding the total quantity of daily, monthly, and yearly sales at the facility per product type; the average prices of daily, monthly, and yearly sales at the facility per product type; and total inventory or sales record adjustments at the facility; and

          (e)  The ability to determine the amount of medical cannabis that a registered qualifying patient or registered designated caregiver has purchased that day in real time by searching a patient registration number.

     (4)  Banks and other financial institutions may be allowed access to specific limited information from the seed-to-sale tracking system.  The information that may be available to these institutions shall be limited to financial data of individuals and business entities that have a business relationship with these institutions.  This information shall be limited to the information needed for banks to comply with applicable federal regulations and shall not disclose any medical or personal information about registered cardholders or designated caregivers.

     SECTION 6.  Section 41-137-13, Mississippi Code of 1972, is brought forward as follows:

     41-137-13.  (1)  This chapter shall not be construed to do any of the following:

          (a)  Require an organization for managed care, health benefit plan, private health insurer, government medical assistance program, employer, property and casualty, or workers' compensation insurer or self-insured group providing coverage for a medical, pharmacy or health care service to pay for or reimburse any other individual or entity for costs associated with the medical use of cannabis;

          (b)  Require any employer to permit, accommodate, or allow the medical use of medical cannabis, or to modify any job or working conditions of any employee who engages in the medical use of medical cannabis or who for any reason seeks to engage in the medical use of medical cannabis;

          (c)  Prohibit any employer from refusing to hire, discharging, disciplining, or otherwise taking an adverse employment action against an individual with respect to hiring, discharging, tenure, terms, conditions, or privileges of employment as a result, in whole or in part, of that individual's medical use of medical cannabis, regardless of the individual's impairment or lack of impairment resulting from the medical use of medical cannabis;

          (d)  Prohibit or limit the ability of any employer from establishing or enforcing a drug-testing policy;

          (e)  Interfere with, impair or impede any federal restrictions or requirements on employment or contracting, including, but not limited to, regulations adopted by the United States Department of Transportation in Title 49, Code of Federal Regulations;

          (f)  Permit, authorize, or establish any individual's right to commence or undertake any legal action against an employer for refusing to hire, discharging, disciplining or otherwise taking an adverse employment action against an individual with respect to hiring, discharging, tenure, terms, conditions or privileges of employment due to the individual's medical use of medical cannabis;

          (g)  Affect, alter or otherwise impact the workers' compensation premium discount available to employers who establish a drug-free workplace program in accordance with Section 71-3-201 et seq.;

          (h)  Affect, alter or otherwise impact an employer's right to deny or establish legal defenses to the payment of workers' compensation benefits to an employee on the basis of a positive drug test or refusal to submit to or cooperate with a drug test, as provided under Section 71-3-7 and Section 71-3-121; or

          (i)  Affect, alter or supersede any obligation or condition imposed on a parolee, probationer or an individual participating in a pretrial diversion program or other court-ordered substance abuse rehabilitation program.

     (2)  This chapter does not authorize any individual to engage in, and does not prevent the imposition of any civil, criminal or other penalties for engaging in, the following conduct:

          (a)  Acting with negligence, gross negligence, recklessness, in breach of any applicable professional or occupational standard of care, or to effect an intentional wrong, as a result, in whole or in part, of that individual's medical use of medical cannabis;

          (b)  Possessing medical cannabis or otherwise engaging in the medical use of medical cannabis in any correctional facility, unless the correctional facility has elected to allow the cardholder to engage in the use of medical cannabis;

          (c)  Smoking medical cannabis in a public place or in a motor vehicle; for purposes of this paragraph (c), the term "smoking" includes vaping and any other method of inhalation of medical cannabis;

          (d)  Operating, navigating, or being in actual physical control of any motor vehicle, aircraft, train, motorboat or other conveyance in a manner that would violate Section 59-23-7, Section 63-11-30 or federal law as a result, in whole or in part, of that individual's medical use of medical cannabis;

          (e)  Possessing medical cannabis in excess of the allowable amount of medical cannabis; or

          (f)  Consumption, by a registered designated caregiver, of cannabis provided for use to a registered qualifying patient.

     SECTION 7.  Section 41-137-15, Mississippi Code of 1972, is brought forward as follows:

     41-137-15.  (1)  A person shall not be denied custody of or visitation rights or parenting time with a minor solely for the person's status as a cardholder.

     (2)  No school, landlord or employer may be penalized or denied any benefit under state law for enrolling, leasing to or employing a cardholder.

     (3)  A registered qualifying patient or registered designated caregiver shall not be denied the right to own, purchase or possess a firearm, firearm accessory or ammunition based solely on his or her status as a registered qualifying patient or registered designated caregiver.  No state or local agency, municipal or county governing authority shall restrict, revoke, suspend or otherwise infringe upon the right of a person to own, purchase or possess a firearm, firearm accessory or ammunition or any related firearms license or certification based solely on his or her status as a registered qualifying patient or registered designated caregiver.

     (4)  Facilities such as schools, child care facilities and temporary care providers shall be allowed to administer medical cannabis in the same manner as with medical prescriptions.

     (5)  Nothing in this chapter shall be construed as to create a private right of action by an employee against an employer. 

     (6)  Nothing in this chapter shall be construed to affect the existing legal relationship between an employer and employee or any existing law or regulation relating to such relationship.

     SECTION 8.  Section 41-137-17, Mississippi Code of 1972, is brought forward as follows:

     41-137-17.  (1) Any resident of Mississippi may petition the MDOH to add serious medical conditions or their treatments to the list of debilitating medical conditions listed in Section 41-137-3.  The MDOH shall consider petitions in accordance with its rules and regulations, including public notices and hearings.  The MDOH shall approve or deny a petition within sixty (60) days of its submission. 

     (2)  The approval or denial of any petition is a final decision of the MDOH.  Any person aggrieved by a final decision may obtain judicial review thereof in accordance with Section 41-137-59.

     SECTION 9.  Section 41-137-19, Mississippi Code of 1972, is brought forward as follows:

     41-137-19.  (1)  Nothing in this chapter requires a government medical assistance program or private insurer to reimburse a person for costs associated with the medical use of medical cannabis.

     (2)  Nothing in this chapter prohibits an employer from disciplining an employee for ingesting medical cannabis in the workplace or for working while under the influence of medical cannabis.

     (3)  Any person or establishment that is in lawful possession of property may allow a guest, client, customer or other visitor to use medical cannabis on or in that property as authorized under this chapter.

     (4)  A landlord may, but shall not be required to, allow the lawful cultivation, processing, testing, research, sale or use of medical cannabis on rental property as authorized under this chapter.

     SECTION 10.  Section 41-137-21, Mississippi Code of 1972, is brought forward as follows:

     41-137-21.  (1)  Any nursing facility, hospital, hospice, assisted living facility, personal care home, adult day care facility, or adult foster care facility may adopt reasonable restrictions on the use of medical cannabis by registered qualifying patients who are receiving health care services, residential care services, or day care services from the facility, including:

          (a)  That the facility will not store or maintain the patient's supply of medical cannabis;

          (b)  That the facility, caregivers, or hospice agencies serving the facility's residents are not responsible for providing the medical cannabis for registered qualifying patients; and

          (c)  That medical cannabis be consumed only in a place specified by the facility.

     (2)  Nothing in this section requires a facility listed in subsection (1) of this section to adopt restrictions on the medical use of medical cannabis.

     (3)  A facility listed in subsection (1) of this section may not unreasonably limit a registered qualifying patient's access to or medical use of medical cannabis authorized under this chapter, unless failing to do so would cause the facility to lose a monetary or licensing-related benefit under federal law or regulations.

     SECTION 11.  Section 41-137-23, Mississippi Code of 1972, is brought forward as follows:

     41-137-23.  (1)  No later than one hundred twenty (120) days after February 2, 2022, the MDOH shall begin issuing registry identification cards to qualifying patients who submit the following:

          (a)  A written certification issued by a practitioner within six (6) months immediately preceding the date of the application;

          (b)  The application or renewal fee;

          (c)  The name, address, social security number, and date of birth of the qualifying patient;

          (d)  The name, address, and telephone number of the qualifying patient's practitioner issuing the written certification;

          (e)  The name, address, social security number, and date of birth of the designated caregiver, or designated caregivers, chosen by the qualifying patient; and

          (f)  If more than one (1) designated caregiver is designated at any given time, documentation demonstrating that a greater number of designated caregivers is needed due to the patient's age or medical condition.

     (2)  If the qualifying patient is unable to submit the information required by subsection (1) of this section due to the person's age or medical condition, the person responsible for making medical decisions for the qualifying patient may do so on behalf of the qualifying patient.

     (3)  Except as provided in subsection (5) of this section, the MDOH shall:

          (a)  Verify the information contained in an application or renewal submitted under this section and approve or deny an application or renewal within ten (10) days of receiving a completed application or renewal application; and

          (b)  Issue registry identification cards to a qualifying patient and his or her designated caregiver(s), if any, within five (5) days of approving the application or renewal.  A designated caregiver must have a registry identification card for each of his or her qualifying patients.

     (4)  (a)  The MDOH shall require criminal background checks in order to carry out this section.

          (b)  The MDOH shall require that the prospective designated caregiver or caregiver's applicant apply for or authorize the division to obtain state and national criminal background checks to be conducted by the Mississippi Justice Information Center of the Department of Public Safety and the Federal Bureau of Investigation.

          (c)  Such criminal background checks shall conform to the applicable federal standards, and shall include the taking of fingerprints.

          (d)  The applicant shall authorize the release of such criminal background checks to the MDOH, and shall be responsible for the payment of any fee associated with the criminal background checks.

          (e)  Upon completion of such criminal background checks, the Mississippi Justice Information Center of the Department of Public Safety shall forward to the MDOH all information obtained concerning the applicant.

     (5)  The MDOH shall not issue a registry identification card to a qualifying patient who is younger than eighteen (18) years of age, unless:

          (a)  The qualifying patient's practitioner has explained the potential risks and benefits of the medical use of medical cannabis to the custodial parent or legal guardian with responsibility for health care decisions for the qualifying patient; and

          (b)  The custodial parent or legal guardian with responsibility for health care decisions for the qualifying patient consents in writing to:

              (i)  Acknowledge the potential harms related to the use of medical cannabis;

              (ii)  Allow the qualifying patient's medical use of medical cannabis;

              (iii)  Serve as the qualifying patient's designated caregiver; and

              (iv)  Control the acquisition of the medical cannabis, the dosage and the frequency of the use of medical cannabis by the qualifying patient.

     (6)  If a designated caregiver is an entity licensed to provide health care services, residential care services or day care services, then:

          (a)  The MDOH may provide a single registry identification card to the entity, regardless of the number of registered qualifying patients the entity serves; and

          (b)  The MDOH may issue individual registry identification cards for employees of the entity that may transport medical cannabis.

     (7)  The MDOH shall provide an electronic or physical list of registered qualifying patients who have designated the entity as their caregiver.  This list shall be updated with each additional designation.

     (8)  The MDOH may deny an application or renewal of a qualifying patient's registry identification card only if the applicant:

          (a)  Did not provide the required information or materials;

          (b)  Previously had a registry identification card revoked;

          (c)  Provided false information; or

          (d)  Failed to meet the other requirements of this chapter.

     (9)  The MDOH may deny an application or renewal for a designated caregiver chosen by a qualifying patient whose registry identification card was granted only if the applicant:

          (a)  Does not meet the definition of "designated caregiver" under Section 41-137-3;

          (b)  Did not provide the information required;

          (c)  Previously had a registry identification card revoked;

          (d)  Provided false information;

          (e)  Is younger than twenty-one (21) years of age and is not the parent or legal guardian of the qualifying patient who the designated caregiver would assist; or

          (f)  Failed to meet the other requirements of this chapter.

     (10)  The MDOH shall give written notice to the qualifying patient of the reason for denying a registry identification card to the qualifying patient or to the qualifying patient's designated caregiver.

     (11)  Denial of an application or renewal is considered a final MDOH action, subject to judicial review in accordance with Section 41-137-59.

     SECTION 12.  Section 41-137-25, Mississippi Code of 1972, is brought forward as follows:

     41-137-25.  (1)  Registry identification cards must contain all of the following:

          (a)  The name of the cardholder;

          (b)  A designation of whether the cardholder is a qualifying patient, a designated caregiver or a nonresident;

          (c)  The date of issuance and expiration date of the registry identification card;

          (d)  A random ten-digit alphanumeric identification number, containing at least four (4) numbers and at least four (4) letters, that is unique to the cardholder;

          (e)  If the cardholder is a designated caregiver, the random identification number of the qualifying patient the designated caregiver will assist;

          (f)  A photograph of the cardholder;

          (g)  The toll-free phone number or internet address where the card can be verified;

          (h)  A notice of the potential harm caused by medical cannabis; and

          (i)  A notice of the MMCEU daily, monthly and possession limit.

     (2)  The expiration date shall be visible on the registry identification card.  Except as provided in subsection (3) or subsection (4) of this section, the expiration date for registry identification cards for residents shall be one (1) year after the date of issuance.  The expiration date for registry identification cards for nonresidents shall be fifteen (15) days after the date of issuance, except as provided in subsection (4) of this section. 

     (3)  If the practitioner stated in the written certification that the qualifying patient would benefit from the medical use of medical cannabis until a specified earlier date, then the registry identification card shall expire on that date, except as provided in subsection (4) of this section.

     (4)  (a)  The expiration date for registry identification cards for residents that are issued not later than one hundred fifty (150) days after February 2, 2022, shall be one (1) year after the initial one-hundred-fifty-day period.

          (b)  If the practitioner specified an earlier date for the expiration of the registry identification card as provided under subsection (3) of this section, then the registry identification card shall be valid for the period specified by the practitioner, which shall begin after the initial one-hundred-fifty-day period.

          (c)  The expiration date for registry identification cards for nonresidents that are issued not later than one hundred fifty (150) days after February 2, 2020, shall be fifteen (15) days after the initial one-hundred-fifty-day period.

     SECTION 13.  Section 41-137-27, Mississippi Code of 1972, is brought forward as follows:

     41-137-27.  (1)  No later than December 31, 2022, and every December 31 thereafter, the MDOH and MDOR shall provide an annual report to the Governor, Lieutenant Governor, Speaker of the House of Representatives, Chairman of the Senate Public Health and Welfare Committee, Chairman of the House of Representatives Public Health and Human Services Committee and the Chairmen of the Drug Policy Committees and Appropriation Committees of the Senate and House of Representatives.

     (2)  The MDOH and MDOR shall report every year to the Governor, Lieutenant Governor, Speaker of the House of Representatives, Chairman of the Senate Public Health and Welfare Committee, Chairman of the House of Representatives Public Health and Human Services Committee and the Chairmen of the Drug Policy Committees and Appropriation Committees of the Senate and House of Representatives on the number of applications for registry identification cards received, the amount of fees, fines and taxes collected, any changes to the fees allowed to be charged under this chapter, any addition to the list of debilitating medical conditions, the number of qualifying patients and designated caregivers approved, the number of registry identification cards revoked and expenses incurred by the MDOH and MDOR.  The MDOH shall not include identifying information on qualifying patients, designated caregivers or practitioners in the report.

     (3)  The MDOR shall provide quarterly reports for all sales of medical cannabis sold by dispensaries to registered qualified patients to the Governor, Lieutenant Governor, Speaker of the House of Representatives, Chairman of the Senate Public Health and Welfare Committee, Chairman of the House of Representatives Public Health and Human Services Committee, and the Chairmen of the Drug Policy Committees and Appropriation Committees of the Senate and House of Representatives.  The MDOR shall report every year on the number of each type of medical cannabis establishments that are licensed and registered and the expenses incurred and revenues generated from the medical cannabis program to the Governor, Lieutenant Governor, Speaker of the House of Representatives, Chairman of the Senate Public Health and Welfare Committee, Chairman of the House of Representatives Public Health and Human Services Committee, and the Chairmen of the Drug Policy Committees and Appropriation Committees of the Senate and House of Representatives.

     SECTION 14.  Section 41-137-29, Mississippi Code of 1972, is brought forward as follows:

     41-137-29.  (1)  The MDOH shall maintain a confidential list of the persons to whom the MDOH has issued registry identification cards and their addresses, phone numbers, and registry identification numbers.  This confidential list shall not be combined or linked in any manner with any other lists or databases, nor shall it be used for any purpose not provided for in this chapter.

     (2)  All records containing the identity of registered qualifying patients, registered designated caregivers or practitioners shall be confidential and exempt from disclosure under the Mississippi Public Records Act or any related statute, rule or regulation pertaining to public disclosure of records.  Within one hundred twenty (120) days after February 2, 2022, the MDOH shall establish a secure phone and internet-based verification system.  The verification system must allow law enforcement personnel and medical cannabis establishments to enter a registry identification number to determine whether the number corresponds with a current, valid registry identification card.  The system may disclose only:

          (a)  Whether the identification card is valid;

          (b)  The name of the cardholder;

          (c)  Whether the cardholder is a registered qualifying patient, a registered designated caregiver, or a nonresident; and

          (d)  If a cardholder is a registered designated caregiver, the registry identification number of any affiliated registered qualifying patient.

     SECTION 15.  Section 41-137-31, Mississippi Code of 1972, is brought forward as follows:

     41-137-31.  (1)  The following notifications and MDOH responses are required:

          (a)  A registered qualifying patient shall notify the MDOH of any change in his or her name or address, or if the registered qualifying patient ceases to have his or her diagnosed debilitating medical condition, within twenty (20) days of the change.

          (b)  A registered designated caregiver shall notify the MDOH of any change in his or her name or address, or if the designated caregiver becomes aware that the registered qualifying patient passed away, within twenty (20) days of the change.

          (c)  Before a registered qualifying patient changes his or her registered designated caregiver, the registered qualifying patient must notify the MDOH.

          (d)  If a cardholder loses his or her registry identification card, he or she shall notify the MDOH within ten (10) days of becoming aware that the card has been lost.

     (2)  Each notification that a registered qualifying patient is required to make shall instead be made by the patient's registered designated caregiver if the qualifying patient is unable to make the notification due to his or her age or medical condition.

     (3)  When a cardholder notifies the MDOH of any of the circumstances listed in subsection (1) of this section but remains eligible under this chapter, the MDOH shall issue the cardholder a new registry identification card within ten (10) days of receiving the updated information and a Twenty-five Dollar ($25.00) fee.  If the person notifying the MDOH is a registered qualifying patient, the MDOH shall also issue his or her registered designated caregiver, if any, a new registry identification card within ten (10) days of receiving the updated information.

     (4)  If the registered qualifying patient's certifying practitioner notifies the patient and the MDOH in writing that either the registered qualifying patient has ceased to have a debilitating medical condition or that the practitioner no longer believes, in his or her professional opinion and within his or her scope of practice, that the patient would likely receive medical or palliative benefit from the medical use of medical cannabis to treat or alleviate the patient's debilitating medical condition or symptoms associated with the patient's debilitating medical condition, the card shall become null and void.

     (5)  A medical cannabis establishment shall notify the MDOH within one (1) business day of any theft or loss of medical cannabis.

     (6)  A medical cannabis establishment shall notify its licensing agency within one (1) business day if there is a change of ownership or closure of the entity.

     SECTION 16.  Section 41-137-33, Mississippi Code of 1972, is brought forward as follows:

     41-137-33.  Medical cannabis dispensaries shall report medical cannabis dispensing information every twenty-four (24) hours to the Prescription Monitoring Program provided for in Section 73-21-127.  Dispensaries shall submit information as required by the Prescription Monitoring Program, including, but not limited to, the qualified patient's registry identification card number and the amount of medical cannabis dispensed to the patient.

     SECTION 17.  Section 41-137-35, Mississippi Code of 1972, is brought forward as follows:

     41-137-35.  (1)  The MDOH shall issue licenses for cannabis cultivation facilities, cannabis processing facilities, cannabis transportation entities, cannabis disposal entities, cannabis research facilities and cannabis testing facilities.  The MDOR shall issue licenses for medical cannabis dispensaries.

     (2)  The cannabis cultivation facility license application fee shall be subject to the following tiers:

          (a)  Micro-cultivators.

              (i)  Tier 1.  A cannabis cultivation facility with a canopy of one thousand (1,000) square feet or less shall be subject to a one-time nonrefundable license application fee of One Thousand Five Hundred Dollars ($1,500.00).  The annual license fee shall be a nonrefundable fee of Two Thousand Dollars ($2,000.00).

              (ii)  Tier 2.  A cannabis cultivation facility with a canopy of more than one thousand (1,000) square feet but not more than two thousand (2,000) square feet shall be subject to a one-time nonrefundable license application fee of Two Thousand Five Hundred Dollars ($2,500.00).  The annual license fee shall be a nonrefundable fee of Three Thousand Five Hundred Dollars ($3,500.00).

          (b)  Cultivators.

              (i)  Tier 1.  A cannabis cultivation facility with a canopy of not less than two thousand (2,000) square feet but not more than five thousand (5,000) square feet shall be subject to a one-time nonrefundable license application fee of Five Thousand Dollars ($5,000.00).  The annual license fee shall be a nonrefundable fee of Fifteen Thousand Dollars ($15,000.00).

              (ii)  Tier 2.  A cannabis cultivation facility with a canopy of not less than five thousand (5,000) square feet but not more than fifteen thousand (15,000) square feet shall be subject to a one-time nonrefundable license application fee of Ten Thousand Dollars ($10,000.00).  The annual license fee shall be a nonrefundable fee of Twenty-five Thousand Dollars ($25,000.00).

              (iii)  Tier 3.  A cannabis cultivation facility with a canopy of not less than fifteen thousand (15,000) square feet but not more than thirty thousand (30,000) square feet shall be subject to a one-time nonrefundable license application fee of Twenty Thousand Dollars ($20,000.00).  The annual license fee shall be a nonrefundable fee of Fifty Thousand Dollars ($50,000.00). 

              (iv)  Tier 4.  A cannabis cultivation facility with a canopy of not less than thirty thousand (30,000) square feet but not more than sixty thousand (60,000) square feet shall be subject to a one-time nonrefundable license application fee of Thirty Thousand Dollars ($30,000.00).  The annual license fee shall be a nonrefundable fee of Seventy-five Thousand Dollars ($75,000.00). 

              (v)  Tier 5.  A cannabis cultivation facility with a canopy of not less than sixty thousand (60,000) square feet but not more than one hundred thousand (100,000) square feet shall be subject to a one-time nonrefundable license application fee of Forty Thousand Dollars ($40,000.00).  The annual license fee shall be a nonrefundable fee of One Hundred Thousand Dollars ($100,000.00). 

              (vi)  Tier 6.  A cannabis cultivation facility with a canopy of not less than one hundred thousand (100,000) square feet but not more than one hundred fifty thousand (150,000) square feet shall be subject to a one-time nonrefundable license application fee of Sixty Thousand Dollars ($60,000.00).  The annual license fee shall be a nonrefundable fee of One Hundred Fifty Thousand Dollars ($150,000.00).  Tier 6 cannabis cultivation facilities shall have not more than two (2) locations; however, the total canopy space of both locations combined may not exceed one hundred fifty thousand (150,000) square feet.

     (3)  The cannabis processing facility license application fee shall be subject to the following tiers:

          (a)  Micro-processors. 

              (i)  Tier 1.  A cannabis processing facility which processes less than two thousand (2,000) pounds of dried biomass cannabis material annually shall be subject to a one-time nonrefundable license application fee of Two Thousand Dollars ($2,000.00).  The annual license fee shall be a nonrefundable fee of Three Thousand Five Hundred Dollars ($3,500.00).

              (ii)  Tier 2.  A cannabis processing facility which processes not less than two thousand (2,000) pounds but less than three thousand (3,000) pounds of dried biomass cannabis material annually shall be subject to a one-time nonrefundable license application fee of Two Thousand Five Hundred Dollars ($2,500.00).  The annual license fee shall be a nonrefundable fee of Five Thousand Dollars ($5,000.00).

          (b)  Processors.  A cannabis processing facility which processes not less than three thousand (3,000) pounds of biomass cannabis material annually shall be subject to a one-time nonrefundable license application fee of Fifteen Thousand Dollars ($15,000.00).  The annual license fee shall be a nonrefundable fee of Twenty Thousand Dollars ($20,000.00).

     (4)  A medical cannabis dispensary shall be subject to a one-time nonrefundable license application fee of Fifteen Thousand Dollars ($15,000.00).  The annual license fee shall be a nonrefundable fee of Twenty-five Thousand Dollars ($25,000.00).

     (5)  Cannabis transportation entities shall be subject to a one-time nonrefundable application fee of Five Thousand Dollars ($5,000.00).  The annual license fee shall be a nonrefundable fee of Seven Thousand Five Hundred Dollars ($7,500.00).

     (6)  Cannabis disposal entities shall be subject to a one-time nonrefundable application fee of Five Thousand Dollars ($5,000.00).  The annual license fee shall be a nonrefundable fee of Seven Thousand Five Hundred Dollars ($7,500.00). 

     (7)  Cannabis testing facilities shall be subject to a one-time nonrefundable application fee of Ten Thousand Dollars ($10,000.00) and an annual license fee of Fifteen Thousand Dollars ($15,000.00).  An individual or business entity that has a direct or indirect ownership or economic interest in a licensed cannabis testing facility may also have a direct or indirect ownership or economic interest in a licensed medical cannabis transportation entity.  A cannabis testing facility may enter into an agreement for the transportation of medical cannabis by a licensed medical cannabis transportation entity.  MDOH may contract with a private laboratory for the purpose of conducting compliance testing oversight of medical cannabis testing facilities licensed in the state.  Any such laboratory under contract for compliance testing oversight shall be prohibited from conducting any other commercial medical cannabis testing in this state.

     (8)  Cannabis research facilities shall be subject to a one-time nonrefundable application fee of Ten Thousand Dollars ($10,000.00) and an annual license fee of Fifteen Thousand Dollars ($15,000.00).  A research facility at any university or college in this state shall be exempt from all fees imposed under this section.

     (9)  No individual or business entity shall have a direct or indirect ownership or economic interest of greater than ten percent (10%) in:

          (a)  More than one (1) cannabis cultivation facility license;

          (b)  More than one (1) cannabis processing facility license; and

          (c)  More than five (5) medical cannabis dispensary licenses.

     (10)  Minimum qualifications for applicants for a cannabis cultivation facility, a cannabis processing facility, a medical cannabis dispensary, a medical cannabis transportation entity or a medical cannabis disposal entity license(s) are as follows:

          (a)  An individual applicant for a cannabis cultivation facility, cannabis processing facility, medical cannabis dispensary, medical cannabis transportation entity or medical cannabis disposal license shall be a natural person who:

              (i)  Is at least twenty-one (21) years of age;

              (ii)  Has not previously held a license for a  cannabis cultivation facility, cannabis processing facility,  medical cannabis dispensary, medical cannabis transportation entity or medical cannabis disposal entity that has been revoked;

              (iii)  Has not been convicted of a disqualifying felony offense;

              (iv)  If possessing a professional or occupational license, that the license is in good standing;

              (v)  Has submitted a sworn statement indicating that he or she is a true and actual owner of the entity for which the license is desired, and that he or she intends to carry on the business authorized for himself or herself and the entity and not as the agent for any other entity.

              (vi)  Has no outstanding tax delinquencies owed to the State of Mississippi;

              (vii)  Is not serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022;

              (viii)  Is not the spouse of a person serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022; and

          (b)  If the applicant is applying on behalf of an entity, in addition to paragraph (a) of this subsection, the individual applicant shall:

              (i)  Be legally authorized to submit an application on behalf of the entity;

              (ii)  Serve as the primary point of contact with the MDOR and MDOH;

              (iii)  Submit sufficient proof that the entity has no owner, board member, officer, or anyone with an economic interest in the entity who:

                   1.  Is under the age of twenty-one (21);

                   2.  Has previously been an owner of a medical cannabis dispensary, cannabis cultivation facility, a cannabis processing facility, medical cannabis transportation entity or medical cannabis disposal entity that has had its license revoked;

                   3.  Has been convicted of a disqualifying felony offense;

                   4.  Owes delinquent taxes to the State of Mississippi;

                   5.  Is serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022; and

                   6.  Is the spouse of a person serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022; and

              (iv)  Submit sufficient proof that if an owner, board member, officer or anyone with an economic interest in the entity has or had a professional or occupational license, that the license is in good standing.

     (11)  [Repealed]

     (12)  A micro-cultivator or a micro-processor shall both meet the minimum qualifications in subsection (10) of this section and shall also submit sufficient proof of the following:

          (a)  If a natural person, proof that the person has been a resident of the State of Mississippi and a citizen of the United States of America for at least three (3) years prior to the application date; or

          (b)  If a business entity, provide proof that:

              (i)  It was registered as an entity with the Secretary of State in Mississippi; and

              (ii)  One-hundred percent (100%) of the equity ownership interests in the entity are held by individuals who have been residents of the State of Mississippi and citizens of the United States of America for at least three (3) consecutive years prior to the application date.

     (13)  For purposes of this section, it shall be sufficient to prove Mississippi residency for the individual(s) to submit two (2) of the following source documents:

          (a)  Mississippi Tax Return Form 80-105 or Form 80-205 for each of the three (3) years preceding the application without schedules, worksheets, or attachments, and redacted to remove all financial information and all but the last four (4) digits of the individual's social security number for the three (3) years preceding the application;

          (b)  Ownership, lease, or rental documents for place of primary domicile for the three (3) years preceding the application;

          (c)  Billing statements, including utility bills for the three (3) years preceding the application; or

          (d)  Vehicle registration for the three (3) years preceding the application.

     (14)  Ownership in a cannabis cultivation facility license, cannabis processing facility license or a medical cannabis dispensary license or investment in a business that supports or benefits from such a license shall not disqualify or otherwise negatively impact the license or finding of suitability of such owner who is otherwise engaged in any other form of business operation in the state, if such business requires the owner to hold a license or be found suitable under state law.

     (15)  Any business or state entity applying for registration as a medical cannabis establishment must meet all the requirements specified in this chapter.

     (16)  A prospective medical cannabis establishment shall submit all of the following:

          (a)  An application, including:

              (i)  The legal name of the prospective medical cannabis establishment;

              (ii)  The physical address of the prospective medical cannabis establishment, which shall not be within one thousand (1,000) feet of the nearest property boundary line of a school, church or child care facility which exists or has acquired necessary real property for the operation of such facility before the date of the medical cannabis establishment application unless the entity has received approval from the school, church or child care facility and received the applicable waiver from their licensing agency, provided that the main point of entry of the cannabis establishment is not located within five hundred (500) feet of the nearest property boundary line of any school, church or child care facility;

              (iii)  The name of each principal officer and board member of the proposed medical cannabis establishment; and

              (iv)  Any additional information requested by the MDOR and MDOH.

          (b)  Operating procedures consistent with rules and regulations for oversight of the proposed medical cannabis establishment, including procedures to ensure accurate record keeping and adequate security measures.

          (c)  If the municipality or county where the proposed medical cannabis establishment would be located has enacted zoning restrictions, a sworn statement certifying that the proposed medical cannabis establishment is in compliance with the restrictions.

          (d)  If the municipality or county where the proposed medical cannabis establishment would be located requires a local registration, license or permit, then proof of receiving such registration, license or permit.

          (e)  If the application is on behalf of an entity, verification that none of the principal officers or board members have served as a principal officer or board member for a medical cannabis establishment that has had its license revoked.

          (f)  If the application is on behalf of an entity, verification that none of the principal officers or board members is under twenty-one (21) years of age.

     (17)  If a dispensary license is issued to an applicant that is still constructing the licensed premises, the applicant must complete construction and fulfill all obligations required by the Department of Revenue to open for business within eighteen (18) months, or the license shall be revoked.

     (18)  The MDOR and MDOH shall issue a renewal registration certificate within ten (10) days of receipt of the prescribed renewal application and renewal fee from a medical cannabis establishment if its license is not under suspension and has not been revoked.

     (19)  A licensing agency shall require disclosure only of persons, entities or affiliated entities who directly or indirectly own ten percent (10%) or more of a medical cannabis establishment issued a license by the licensing agency.

     (20)  Otherwise eligible applicants for licenses to operate as medical cannabis establishments under this chapter shall not be disqualified from receipt of a license based on:

          (a)  Their location on Mississippi Choctaw Indian Reservation Lands; or

          (b)  The involvement of the Mississippi Band of Choctaw Indians or any entity owned or operated by the Mississippi Band of Choctaw Indians as an owner or co-owner of such license, provided that such license shall be subject to revocation for material noncompliance with this chapter on the same basis as any other license.

     (21)  A cannabis processing facility that produces edible cannabis products shall hold a permit to operate as a food establishment and shall comply with all applicable requirements for food establishments as set by the MDOH.

     (22)  Any cannabis that contains less than three tenths percent (.3%) THC that was addressed by the 2018 Farm Bill, Public Law No. 115-334, shall be exempt from regulations applicable to medical cannabis establishments licensed under this chapter.

     SECTION 18.  Section 41-137-37, Mississippi Code of 1972, is brought forward as follows:

     41-137-37.  (1)  A municipality or county may enact ordinances or regulations not in conflict with this chapter, or with regulations enacted under this chapter, governing the time, place, and manner of medical cannabis establishment operations in the locality.  A municipality or county may establish penalties for violation of an ordinance or regulation governing the time, place and manner of a medical cannabis establishment that may operate in the municipality or county.  An applicant for a medical cannabis establishment license shall not apply to a county or municipality for any action regarding zoning or permitting of a medical cannabis establishment until after the applicant has received a medical cannabis establishment license from the MDOH or MDOR as applicable.

     (2)  No municipality or county may prohibit dispensaries either expressly or through the enactment of ordinances or regulations that make their operation impracticable in the jurisdiction.  The main point of entry of a medical cannabis establishment shall not be located within one thousand (1,000) feet of the nearest property boundary line of any school, church or child care facility.  A medical cannabis establishment may receive a waiver to this distance restriction by receiving approval from the school, church or child care facility and by applying for a waiver with its respective licensing agency, provided that the main point of entry of the cannabis establishment is not located within five hundred (500) feet of the nearest property boundary line of any school, church or child care facility.

     (3)  A dispensary, cannabis research facility or cannabis testing facility may be located in any area in a municipality or county that is zoned as commercial or for which commercial use is otherwise authorized or not prohibited, provided that it being located there does not violate any other provisions of this chapter.  A cannabis cultivation facility and/or cannabis processing facility may be located in any area in a municipality or county that is zoned as agricultural or industrial or for which agricultural or industrial use is otherwise authorized or not prohibited, provided that it being there does not violate any other provision of this chapter.  A cannabis cultivation facility and/or cannabis processing facility may be located in any area in a municipality or county that is zoned as commercial or for which commercial use is otherwise authorized or not prohibited, provided that the municipality or county has authorized the entity to be located in such area and that it being there does not violate any other provision of this chapter.  The municipality or county may authorize this by granting a variance to an existing zoning ordinance or by adopting a change in the zoning ordinance that allows for those entities to be located in specific commercial areas.

     (4)  A municipality or county may require a medical cannabis establishment to obtain a local license, permit or registration to operate, and may charge a reasonable fee for the local license, permit or registration, provided that this fee is consistent with fees charged to businesses that are not involved in the cannabis industry.

     (5)  No medical cannabis dispensary may be located within a one-thousand-five-hundred-feet radius from the main point of entry of the dispensary to the main point of entry of another medical cannabis dispensary.  If the sole basis of denial by the licensing agency in refusing to issue the medical cannabis dispensary a license to operate is that the dispensary fails the distance requirement of this subsection (5), then the licensing agency may refund all or part of the license application fee in Section 41-137-35(5) to the applicant.

     SECTION 19.  Section 41-137-39, Mississippi Code of 1972, is brought forward as follows:

     41-137-39.  (1)  (a)  The MDOH shall obtain criminal records background checks on all persons applying to become a licensee, an agent, or representative as defined herein, of a medical cannabis establishment.  This shall include performing criminal records background checks on all potential employees, current employees, or representatives/agents of the MDOH Medical Cannabis Program.  The required criminal history background check includes information provided by the Federal Bureau of Investigation.

          (b)  For the purposes of this section, an applicant is any person who registers with or applies for an initial medical cannabis work permit, or a renewal of a medical cannabis work permit.  Such a person or applicant may also be defined as an agent, an employee, a representative, etc., as further defined and sometimes used interchangeably as referenced in this section.

          (c)  For purposes of this section, an agent is a person who acts for or on behalf of, or who represents a medical cannabis establishment while in the course of business or employment with the Mississippi Medical Cannabis Program and may also be referred to as an agent, a representative, or vice versa.

          (d)  Representative means a principal officer, owner of ten percent (10%) or greater economic interest in a medical cannabis establishment with direct or indirect interest, officer, director, manager, employee, agent, volunteer, or other type of representative of a registered medical cannabis licensee establishment.

          (e)  Principal officer means a person(s) who has ultimate responsibility for implementing the decisions of a cannabis testing facility or other such medical cannabis establishment and includes, but is not necessarily limited to, the Chief Executive Officer (CEO), Chief Administrative Office (CAO), Chief Financial Officer, (CFO), as applicable.  Elected or appointed, the board as a whole creates agency policies and oversees the agency's managerial positions.

          (f)  Board member means an individual on a medical cannabis establishment's company or agency board which serves as an organization's governing body.

          (g)  Principal owner means the primary owner of a medical cannabis establishment, but often may be the sole owner.

          (h)  Any and every person/applicant seeking to become an owner or principal owner, principal officer, or officer, board member, director, manager, agent/representative, employee, care giver, or volunteer of a medical cannabis establishment shall apply for, or authorize the MDOH to obtain state and national criminal background checks to be conducted by the Mississippi Justice Information Center of the Department of Public Safety and the Federal Bureau of Investigation.

          (i)  Such criminal background checks shall conform to the applicable federal standards and shall include the taking of fingerprints.

          (j)  Once the Mississippi Justice Information Center of the Department of Public Safety completes a state level criminal history background check, they will forward the fingerprints to the Federal Bureau of Investigation for a national criminal history background check.

          (k)  The person seeking to become an agent/representative of a medical cannabis establishment shall authorize the release of such criminal background checks to the MDOH and shall be responsible for the payment of any fee that the Mississippi Justice Information Center of the Department of Public Safety or the MDOH charges to process fingerprint-based state and national criminal background checks.  The Department of Public Safety and the MDOH each may charge and retain a fee not to exceed Sixty Dollars ($60.00) for each applicant.

          (l)  The Mississippi Justice Information Center of the Department of Public Safety shall forward to the MDOH all information obtained concerning the applicant.  MDOH will not disseminate the information and will only use such information as required to fulfill the purposes of this act.

     (2)  A medical cannabis establishment may not employ any person who:

          (a)  Was convicted of a disqualifying felony offense; or

          (b)  Is under twenty-one (21) years of age.

     (3)  The operating documents of a medical cannabis establishment must include procedures for the oversight of the medical cannabis establishment and procedures to ensure accurate record keeping and adequate security measures.

     (4)  A medical cannabis establishment shall implement appropriate security measures designed to deter and prevent the theft of medical cannabis and unauthorized entrance into areas containing medical cannabis.

     (5)  All cultivation, harvesting, processing and packaging of medical cannabis must take place in an enclosed, locked and secure facility with a physical address provided to the MDOH during the licensing and registration process.  The facility shall be equipped with locks or other security devices that permit access only by agents of the medical cannabis establishment, emergency personnel or adults who are twenty-one (21) years of age and older and who are accompanied by medical cannabis establishment agents.

     (6)  No medical cannabis establishment other than a cannabis processing facility or cannabis research facility may produce cannabis concentrates, cannabis extractions, or other cannabis products.

     (7)  A medical cannabis establishment may not share office space with or refer patients to a practitioner.

     (8)  Medical cannabis establishments are subject to inspection by the MDOR and MDOH during business hours.

     (9)  Before medical cannabis may be dispensed to a cardholder, a dispensary agent must:

          (a)  Require that the individual present a registry identification card;

          (b)  Make a diligent effort to verify that the registry identification card presented to the dispensary is valid;

          (c)  Make a diligent effort to verify that the person presenting the registry identification card is the person identified on the registry identification card presented to the dispensary agent; and

          (d)  Not believe that the amount of medical cannabis dispensed would cause the person to possess more than the allowable amount of medical cannabis.

     (10)  A medical cannabis establishment shall not sell more than the allowable amount of medical cannabis to a cardholder.  A resident cardholder shall not obtain more than a total of twenty-four (24) MMCEUs of allowable medical cannabis in thirty (30) days from a dispensary or a combination of dispensaries.

     The possession limit for resident cardholders of the allowable amount of medical cannabis shall be a total of twenty-eight (28) MMCEUs.  There shall not be a possession limit on nonconsumable medical cannabis, including, but not limited to, suppositories, ointments, soaps, and lotions or other topical agents.

     (11)  For purposes of this chapter, total THC is defined as THCA multiplied by .877 plus THC Delta 9 and all other psychoactive forms or isomers of THC added together.  A medical cannabis establishment shall not sell cannabis flower or trim that has a potency of greater than thirty percent (30%) total THC.  A medical cannabis dispensary shall not sell cannabis tinctures, oils or concentrates that have a potency of greater than sixty percent (60%) total THC.  Cannabis products that have a potency of over thirty percent (30%) total THC shall be clearly labeled as "extremely potent."  Edible cannabis products, including food or drink products, that have been combined with usable cannabis or cannabis products shall be physically demarked and labeled with a clear determination of how much total THC is in a single-serving size and how much THC is in the entire package.

     A medical cannabis product shall contain a notice of harm regarding the use of cannabis products.  Edible cannabis products shall be homogenized to ensure uniform disbursement of cannabinoids throughout the product.  All molded edible cannabis products shall be presented in the form of geometric shapes and shall not be molded to contain any images or characters designed or likely to appeal to minors, such as cartoons, toys, animals or children.

     (12)  A dispensary may not dispense more than the allowable amount of cannabis to a registered qualifying patient or a nonresident cardholder, directly or via a registered designated caregiver.  Dispensaries shall ensure compliance with this limitation by maintaining internal, confidential records that include records specifying how much medical cannabis is being dispensed to the registered qualifying patient or nonresident cardholder and whether it was dispensed directly to a registered qualifying patient, nonresident cardholder or to the registered designated caregiver.

     (13)  A nonresident cardholder shall not obtain more than a total of six (6) MMCEUs of allowable medical cannabis in a week from a dispensary or a combination of dispensaries.  A nonresident cardholder shall not obtain more than a total of twelve (12) MMCEUs of allowable cannabis from a dispensary or a combination of dispensaries in a fifteen-day period.

     (14)  A nonresident may apply to receive a nonresident registry identification card up to thirty (30) days before arriving in Mississippi.  A nonresident registry identification card shall be valid for fifteen (15) days.  After the expiration of the card, a nonresident may apply for a renewal of the card and may be granted another card which shall be valid for another fifteen-day period.  A nonresident registry identification card shall only be valid, at a maximum, for two (2) separate periods of fifteen (15) days in a three-hundred-sixty-five-day period.  An applicant may indicate on his or her application the specific time period that he or she wishes for the card to be valid.  The possession limit of the allowable amount of medical cannabis for nonresident cardholders shall be fourteen (14) MMCEUs.

     (15)  A medical cannabis dispensary agent or employee shall not issue a written certification.  Employees and agents of a medical cannabis dispensary shall complete at least eight (8) hours of continuing education in medical cannabis as regulated by the MDOR in order to be certified to work at a medical cannabis dispensary.  After the first year of employment, these employees shall complete five (5) hours of continuing education in medical cannabis annually to maintain this certification.

     (16)  Notwithstanding any other provision to the contrary, a patient with a debilitating medical condition who is between eighteen (18) years to twenty-five (25) years of age is not eligible for a medical cannabis registry identification card unless two (2) practitioners from separate medical practices have diagnosed the patient as having a debilitating medical condition after an in-person consultation.  One (1) of these practitioners must be a physician or doctor of osteopathic medicine.

     If one (1) of the recommending practitioners is not the patient's primary care practitioner, the recommending practitioner shall review the records of a diagnosing practitioner.  The requirement that the two (2) practitioners be from separate medical practices does not apply if the patient is homebound or if the patient had a registry identification card before the age of eighteen (18).

     (17)  Except as otherwise provided in this section, a medical cannabis establishment shall not allow an individual who is younger than twenty-one (21) years old to enter the premises of the establishment unless the individual possesses a registry identification card and is accompanied by his or her legal guardian.

     (18)  A medical cannabis establishment shall only purchase, grow, cultivate, and use cannabis that is grown and cultivated in this state.  Any medical cannabis that is grown and cultivated in this state shall not be transported outside of this state.

     (19)  Employees of all medical cannabis establishments shall apply for a work permit with the MDOH and MDOR, as applicable, before beginning employment with any establishment.  The licensing agency for the respective medical cannabis establishment may issue work permits to these individuals.  These licensing agencies shall maintain a work registry of all applicants and work permits issued.  The fee for a work permit shall be Twenty-five Dollars ($25.00) and the permit shall be valid for five (5) years.  Work permits shall be the property of the employee and shall not be transferable to other employees.

     (20)  For purposes of this subsection, "plant growth regulator cannabis" shall mean a cannabis plant whose growth and structure has been modified using plant growth hormones.  A cannabis cultivation facility shall not cultivate and a cannabis dispensary shall not sell, transfer or provide for consumption plant growth regulator cannabis.

     (21)  A medical cannabis dispensary shall only make sales to cardholders inside the dispensary.  A medical cannabis dispensary shall not sell or otherwise convey medical cannabis to a cardholder through the means of a drive-through, curbside delivery or other delivery outside the premises of the dispensary.  Any topical cannabis product that is purchased by a dispensary from a licensed processor, and that is not ingested by the liver, may be sold to a cardholder or any person over the age of twenty-one (21) years old who is not a cardholder.  Such products shall be placed in an area of the dispensary that does not require access with a registry identification card.

     (22)  Any and all contracts or agreements entered into by the MDOH and MDOR for information technology software, hardware, and/or services for the purpose of implementing and/or operating under the Mississippi Medical Cannabis Act shall include language reasonably limiting the ability of the vendor to escalate the ongoing cost of such software, hardware, and/or services during the term of the contract, including any amendments and/or extensions.

     (23)  The MDOR and MDOH shall not share the name, address or personal data of a registry identification cardholder to any federal government entity.

     SECTION 20.  Section 41-137-41, Mississippi Code of 1972, is brought forward as follows:

     41-137-41.  (1)  From and after February 2, 2022, the MDOH and MDOR shall each, where relevant to the role of that particular agency, establish and promulgate the following rules and regulations:

          (a)  Governing the manner in which it shall consider petitions from the public to add debilitating medical conditions or treatments to the list of debilitating medical conditions set forth in Section 41-137-3, including public notice of and opportunities to comment in public hearings on the petitions;

          (b)  Establishing the form and content of license and renewal applications and written certifications submitted under this chapter;

          (c)  Governing the manner in which it shall consider applications for and renewals of registry identification cards, which may include creating a standardized written certification form;

          (d)  Governing medical cannabis establishments with the goals of ensuring the health and safety of registered qualifying patients and preventing diversion and theft of medical cannabis without imposing an undue burden or compromising the confidentiality of cardholders, including:

              (i)  Oversight requirements;

              (ii)  Recordkeeping requirements;

              (iii)  Qualifications that are directly and demonstrably related to the operation of medical cannabis establishments;

              (iv)  Security requirements, including lighting, physical security, and alarm requirements;

              (v)  Health and safety regulations, including restrictions on the use of pesticides, herbicides or other chemicals that are injurious to human health;

              (vi)  Standards for the processing of cannabis products and the indoor cultivation of cannabis by cannabis cultivation facilities;

              (vii)  Requirements for the transportation and storage of cannabis by medical cannabis establishments;

               (viii)  Employment and training requirements, including requiring that each medical cannabis establishment create an identification badge for each agent of the establishment;

              (ix)  Standards for the safe processing of medical cannabis products, including extracts and concentrates;

              (x)  Restrictions on the advertising, signage, and display of medical cannabis, provided that the restrictions may not prevent appropriate signs on the property of a dispensary, listings in business directories, including phone books, listings in cannabis-related or medical publications, display of cannabis in company logos and other branding activities, display on dispensary websites of pictures of products that the dispensary sells, or the sponsorship of health or not-for-profit charity or advocacy events;

              (xi)  Requirements and procedures for the safe and accurate packaging and labeling of medical cannabis, including prohibiting the use of any images designed or likely to appeal to minors, such as cartoons, packaging that resembles popular candy brands, toys, animals or children, or any other likeness or image containing characters or phrases to advertise to minors;

              (xii)  Standards for cannabis testing facilities, including requirements for equipment and qualifications for personnel;

              (xiii)  Protocol development for the safe delivery of medical cannabis from dispensaries to cardholders;

              (xiv)  Reasonable requirements to ensure the applicant has sufficient property or capital to operate the applicant's proposed medical cannabis establishment;

              (xv)  Procedures for suspending or terminating the licenses or registry identification cards of cardholders and medical cannabis establishments that commit multiple or serious violations of the provisions of this chapter or the rules and  regulations promulgated pursuant to this section;

              (xvi)  Procedures for the selection, certification and oversight of a seed-to-sale tracking system as provided for in Section 41-137-11;

              (xvii)  Requirements for labeling medical cannabis and cannabis products, including requiring medical cannabis product labels to include the following:

                   1.  The length of time it typically takes for the product to take effect;

                   2.  Disclosure of ingredients and possible allergens;

                   3.  A nutritional fact panel;

                   4.  The amount of THC and CBD in the product;

                   5.  A notice of the potential harm caused by consuming medical cannabis; and

                   6.  For edible cannabis products, when practicable, a standard symbol indicating that the product contains cannabis;

              (xviii)  Procedures for the registration of nonresident cardholders, which must require the submission of:

                   1.  A practitioner's statement confirming that the patient has a debilitating medical condition; and

                   2.  Documentation demonstrating that the nonresident cardholder is allowed to possess medical cannabis or cannabis preparations in the jurisdiction where he or she resides;

              (xix)  The amount of cannabis products, including the amount of concentrated cannabis, each cardholder and nonresident cardholder can possess;

              (xx)  Reasonable application and renewal fees for registry identification cards and registration certificates, according to the following:

                   1.  The fee schedule shall be set as follows:

                        a.  The qualifying patient registry identification card application fee shall be Twenty-five Dollars ($25.00);

                        b.  The designated caregiver registry identification card application fee shall be Twenty-five Dollars ($25.00);

                        c.  The designated caregiver criminal background fee shall be Thirty-seven Dollars ($37.00);

                        d.  The fee for a renewal or replacement of a card shall be Twenty-five Dollars ($25.00);

                        e.  The fee for a card for a nonresident patient shall be Seventy-five Dollars ($75.00);

                        f.  The qualifying patient registry identification card application fee for a Medicaid participant shall be Fifteen Dollars ($15.00) and the fee for a renewal of such card shall be Fifteen Dollars ($15.00); and

                        g.  The application fee for a qualifying patient registry identification card for disabled veterans or disabled first responders shall be waived.  A disabled veteran or first responder may prove their disability by providing written documentation from their practitioner attesting to their debilitating medical condition, documentation from the Social Security Disability Office, or documentation that attests the applicant is a one-hundred percent (100%) disabled veteran as determined by the U.S. Department of Veteran Affairs and codified at 38 CFR, Section 3.340(a)(2013); and

                   2.  The MDOH may accept donations from private sources to reduce the amount of the application and renewal fees;

               (xxi)  Any other rules and regulations necessary to implement and administer this chapter.

     (2)  The initial rules filed by the MDOH to implement the medical cannabis program in accordance with this chapter shall be effective immediately upon their filing.

     (3)  No state agency, political subdivision or board shall implement any rule, regulation, policy, or requirement that is contrary to the provisions of the Mississippi Medical Cannabis Act.

     SECTION 21.  Section 41-137-43, Mississippi Code of 1972, is brought forward as follows:

     41-137-43.  (1)  The MDOH and MDOR shall jointly create and maintain a public registry of medical cannabis establishments, which shall include, but shall not be limited to, the following information: 

          (a)  The name of the establishment;

          (b)  The owner and, if applicable, the beneficial owner of the establishment;

          (c)  The physical address, including municipality and zip code, of the establishment;

          (d)  The mailing address, including municipality and zip code, of the establishment;

          (e)  The county in which the establishment is domiciled;

          (f)  The phone number of the establishment;

          (g)  The electronic mail address of the establishment;

          (h)  The license number of the establishment;

          (i)  The issuance date of the establishment's license;

          (j)  The expiration date of the establishment's license;

          (k)  The NAICS code of the establishment;

          (l)  Any changes to the license holder's status; and

          (m)  Any other information determined necessary by the MDOH and MDOR.

     (2)  The public registry shall not include personal information of an owner of a medical cannabis establishment.

     (3)  The public registry shall be maintained electronically and shall be easily accessible to the public.

     SECTION 22.  Section 41-137-45, Mississippi Code of 1972, is brought forward as follows:

     41-137-45.  (1)  It shall be unlawful for any person or entity to cultivate, process, transport, use, possess, purchase, sell or transfer cannabis except as authorized by this chapter.

     (2)  A cardholder or medical cannabis establishment that purposely or knowingly fails to provide a notice required by Section 41-137-31 is guilty of a civil offense, punishable by a fine of no more than One Thousand Five Hundred Dollars ($1,500.00), which may be assessed and collected by the licensing agency.

     (3)  A medical cannabis establishment or an agent of a medical cannabis establishment that purposely, knowingly, or recklessly sells or otherwise transfers medical cannabis other than to a cardholder, a nonresident cardholder, or to a medical cannabis establishment or its agent as authorized under this chapter is guilty of a felony punishable by a fine of not more than Ten Thousand Dollars ($10,000.00), or by commitment to the custody of the Department of Corrections for not more than two (2) years, or both.  A person convicted under this subsection may not continue to be affiliated with the medical cannabis establishment and is disqualified from further participation in the medical cannabis program under this chapter.

     (4)  A cardholder or nonresident cardholder who purposely, knowingly, or recklessly sells or otherwise transfers medical cannabis to a person or other entity is guilty of a felony punishable by a fine of not more than Three Thousand Dollars ($3,000.00), or by commitment to the custody of the Department of Corrections for not more than two (2) years, or both.  A person convicted under this subsection is disqualified from further participation in the medical cannabis program under this chapter.     (5)  A person who purposely, knowingly, or recklessly makes a false statement to a law enforcement official about any fact or circumstance relating to the medical use of cannabis to avoid arrest or prosecution is guilty of a misdemeanor punishable by a fine of not more than One Thousand Dollars ($1,000.00), by imprisonment in the county jail for not more than ninety (90) days, or both.  If a person convicted of violating this subsection is a cardholder, the person is disqualified from further participation in the medical cannabis program under this chapter.

     (6)  A person who purposely submits false records or documentation for an application for a license for a medical cannabis establishment under this chapter is guilty of a felony punishable by a fine of not more than Five Thousand Dollars ($5,000.00), or by commitment to the custody of the Department of Corrections for not more than two (2) years, or both.  A person convicted under this subsection may not continue to be affiliated with the medical cannabis establishment and is disqualified from further participation in the medical cannabis program under this chapter.

     (7)  A practitioner who purposely refers patients to a specific medical cannabis establishment or to a registered designated caregiver, who advertises in a medical cannabis establishment, or who issues written certifications while holding a financial interest in a medical cannabis establishment, is guilty of a civil offense for every false certification and shall be fined up to Five Thousand Dollars ($5,000.00) by the MDOH.

     (8)  Any person, including an employee or official of an agency or local government, who purposely, knowingly, or recklessly breaches the confidentiality of information obtained under this chapter is guilty of a misdemeanor punishable by a fine of not more than One Thousand Dollars ($1,000.00), or by imprisonment for not more than one hundred eighty (180) days in the county jail, or both.

     (9)  No person, other than a cannabis processing facility or its agents, complying with this chapter and the rules and regulations promulgated under it, may extract compounds from cannabis that involves a chemical extraction process using a nonhydrocarbon-based or other solvent, such as water, vegetable glycerin, vegetable oils, animal fats, steam distillation, food-grade ethanol, or hydrocarbon-based solvent carbon dioxide.  No person may extract compounds from cannabis using ethanol in the presence or vicinity of an open flame.  It shall be a felony punishable by commitment to the custody of the Mississippi Department of Corrections for up to three (3) years and a Ten Thousand Dollar ($10,000.00) fine for any person to purposely, knowingly, or recklessly violate this subsection.

     (10)  A medical cannabis establishment is guilty of a civil offense for any purposeful, knowing or reckless violation of this chapter or the rules and regulations issued under this chapter where no penalty has been specified, and shall be fined not more than Five Thousand Dollars ($5,000.00) for each such violation by its licensing agency.

     (11)  The penalties provided for under this section are in addition to any other criminal, civil or administrative penalties provided for under law, rule or regulation.

     (12)  In addition to peace officers within their jurisdiction, all law enforcement officers of MDOH and MDOR may enforce the provisions made unlawful by this chapter.

     SECTION 23.  Section 41-137-47, Mississippi Code of 1972, is brought forward as follows:

     41-137-47.  (1)  The licensing agency is authorized to investigate, either on the basis of complaints filed with it or on its own initiative through compliance visits, reviews or audits, instances of suspected violations of any nature, including, but not limited to:

          (a)  Performing the duties and requirements set forth for licensees within the relevant statute and regulations;

          (b)  The providing of false information on an application or renewal for a license, incident to a hearing, or otherwise;

          (c)  The conviction of a licensee of a felony;

          (d)  The misappropriation of funds; and

          (e)  The inversion or diversion of medical cannabis or medical cannabis products, or of any other matter reflecting unfavorably upon the holder of a license under the act.

     (2)  On the basis of information developed during such an investigation, the licensing agency may exercise any number of compliance actions including:

          (a)  To revoke, suspend or refuse to renew any license issued by the licensing agency;

          (b)  Deny an application for a license; or

          (c)  Reprimand, fine and/or take any other actions in relation to a license, as the licensing agency may deem proper under the circumstances.

     (3)  The licensing agency may deny the application of any applicant who fails to meet the qualifications for obtaining such license under this chapter or any rules and regulations under this chapter.

     (4)  Whenever the results of such an investigation are filed, the licensee may request an administrative hearing on the matter.  If a licensee or applicant wishes to appeal the licensing agency's decision, the licensee or applicant shall file its administrative appeal within twenty (20) days of receipt of the initial notice.

     If such a hearing is requested, the licensing agency shall set a day for a hearing and shall notify the licensee that on the day fixed for hearing he or she may appear so that an administrative hearing may take place.  The licensing agency shall then conduct a hearing on the record pursuant to the licensing agency's rules and regulations governing such hearings, at which time the burden shall be on the licensee or applicant to prove that the agency's decision was:

          (a)  Unsupported by substantial evidence;

          (b)  Arbitrary or capricious;

          (c)  Beyond the power of the administrative agency to make; or

          (d)  Violated some statutory or constitutional right of the aggrieved party.

     If the licensee or applicant fails to appeal the initial notice within the prescribed time, the decision becomes final and cannot be further appealed.

     (5)  In cases where violations of this chapter have been substantiated, the licensing agency may assess a monetary penalty or recoupment of costs for those reasonable costs that are expended by the licensing agency in the investigation and conduct of a proceeding for the compliance issue that is the subject matter of the hearing, including, but not limited to, the costs of process service, court reporters, expert witnesses and investigations.  The licensing agency shall determine the amount of investigative fees and costs owed by a licensee based on an itemized accounting after the investigation has been officially completed and a final determination or action has been determined.  Upon final determination or action, the licensing agency shall give to the licensee an itemized accounting of the investigative fees and costs incurred.  The licensing agency may recommend denial of, or refusal to take final action to approve the renewal of a licensee unless all investigative fees and costs have been paid in full by the licensee.

     (6)  The licensing agency shall provide its initial notice of suspension, revocation, fine or other sanction by personal delivery or mailing by certified mail, signature required, to the medical cannabis establishment at the address on the registration certificate.  A suspension shall not be for a longer period than six (6) months.  The licensing agency shall provide its initial notice of denial by personal delivery, mailing by certified mail, signature required, or by electronic mail to the applicant at the physical or electronic address listed in its application.

     (7)  A medical cannabis establishment may continue to possess and cultivate cannabis as otherwise authorized to do so under its license during a suspension, but it may not dispense, transfer or sell cannabis.

     (8)  The MDOH shall immediately revoke the registry identification card of any cardholder who sells or otherwise transfers medical cannabis to a person or other entity, and the cardholder shall be disqualified from further participation in the medical cannabis program under this chapter.

     (9)  Except as otherwise provided in subsection (8) of this section, the MDOH may revoke the registry identification card of any cardholder who knowingly commits a violation of this chapter.

     (10)  The hearing decision of the agency on a denial, revocation, suspension or fine is a final decision of the applicable agency subject to judicial review in accordance with Section 41-137-59.

     (11)  No license issued by the MDOH or MDOR shall be transferred by the license holder to any other person or entity except with the written consent of the applicable licensing agency.

     (12)  Any ongoing investigation by a licensing agency under this section shall be considered confidential and exempt from disclosure under the Mississippi Public Records Act of 1983, Sections 25-61-1 through 25-61-17.

     SECTION 24.  Section 41-137-49, Mississippi Code of 1972, is brought forward as follows:

     41-137-49.  (1)  Data in license and registration applications and supporting data submitted by registered qualifying patients, registered designated caregivers, medical cannabis establishments and nonresident cardholders, including data on registered designated caregivers and practitioners, shall be considered private data on individuals that is confidential and exempt from disclosure under the Mississippi Public Records Act of 1983, Sections 25-61-1 through 25-61-17.

     (2)  Data kept or maintained by an agency shall not be used for any purpose not provided for in this chapter and shall not be combined or linked in any manner with any other list or database.

     (3)  Data kept or maintained by an agency may be disclosed as necessary for:

          (a)  The verification of registration certificates and registry identification cards under this chapter;

          (b)  Submission of the annual report required by this chapter;

          (c)  Notification of state or local law enforcement of apparent criminal violations of this chapter;

          (d)  Notification of state and local law enforcement about falsified or fraudulent information submitted for purposes of obtaining or renewing a registry identification card; or

          (e)  Notification of the State Board of Medical Licensure or other occupational or professional licensing board or entity if there is reason to believe that a practitioner provided a written certification in violation of this chapter, or if the MDOH has reason to believe the practitioner otherwise violated the standard of care for evaluating medical conditions.

     (4)  Any information kept or maintained by medical cannabis establishments must identify cardholders by their registry identification numbers and must not contain names or other personally identifying information.

     (5)  At a cardholder's request, the MDOH may confirm the cardholder's status as a registered qualifying patient or a registered designated caregiver to a third party, such as a landlord, school, medical professional, or court.

     (6)  Any agency hard drives or other data-recording media that are no longer in use and that contain cardholder information shall be destroyed.

     (7)  The addresses of prospective and licensed medical cannabis establishments, except for medical cannabis dispensaries,  shall be considered confidential and exempt from disclosure under the Mississippi Public Records Act of 1983, Sections 25-61-1 through 25-61-17.

     SECTION 25.  Section 41-137-51, Mississippi Code of 1972, is brought forward as follows:

     41-137-51.  Notwithstanding any federal tax law to the contrary, in computing net income for medical cannabis establishments, there shall be allowed as a deduction from income taxes imposed under Section 27-7-5, Mississippi Code of 1972, all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or business as a medical cannabis establishment, including reasonable allowance for salaries or other compensation for personal services actually rendered.

     SECTION 26.  Section 41-137-53, Mississippi Code of 1972, is brought forward as follows:

     41-137-53.  (1)  A bank may provide any services to any person or entity licensed in this state to engage in the business of medical cannabis, or with any person or entity engaging in business dealings with such licensee, if the bank provides those services to any other business.

     (2)  A bank and its officers, directors, agents and employees shall not be held liable pursuant to any state law or regulation solely for:

          (a)  Providing financial services to a licensed medical cannabis establishment; or

          (b)  Investing any income derived from providing financial services to a licensed medical cannabis establishment.

     (3)  Nothing in this section shall require a bank to provide financial services to a licensed medical cannabis establishment.

     SECTION 27.  Section 41-137-55, Mississippi Code of 1972, is brought forward as follows:

     41-137-55.  This chapter does not apply to or supersede any of the provisions of Section 41-29-136.

     SECTION 28.  Section 41-137-57, Mississippi Code of 1972, is brought forward as follows:

     41-137-57.  (1)  The cultivation, processing, sale and distribution of medical cannabis and cannabis products, as performed in accordance to the provisions of this chapter, shall be legal in every county and municipality of this state unless a county or municipality opts out through a vote by the board of supervisors of the county or governing authorities of the municipality, as applicable, within ninety (90) days after February 2, 2022.  The governing authorities of the municipality or the board of supervisors of the county, as applicable, shall provide a notice in accordance with the Open Meetings Act (Section 25-41-1 et seq.) of its intent of holding a vote regarding opting out of allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable.  The governing authorities of the municipality or the board of supervisors of the county, as applicable, may opt out of allowing one or more of the following:  cultivation, processing, sale or distribution of medical cannabis and cannabis products.  The governing authorities of a municipality, by a vote entered upon their minutes, may opt out of allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, in the municipality.  The board of supervisors of a county, by a vote entered upon its minutes, may opt out of allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, in the unincorporated areas of the county.

     (2)  If the board of supervisors of a county or the governing authorities of a municipality do not opt out of allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, within ninety (90) days after February 2, 2022, then no vote by the board of supervisors or governing authorities, as applicable, may be held to so opt out, and the provisions of this chapter shall remain applicable and operative in the county or municipality, as applicable.  If the board of supervisors of a county or governing authorities of a municipality have opted out of allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, then the board of supervisors or governing authorities of a municipality may later opt in regarding the same through a vote by the board of supervisors or governing authorities, as applicable, entered upon its or their minutes, or an election duly held according to subsection (3) or (4) of this section, as applicable.

     (3)  (a)  Upon presentation and filing of a proper petition requesting that the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, be legal in the unincorporated areas of the county signed by at least twenty percent (20%) or fifteen hundred (1500), whichever number is the lesser, of the qualified electors of the county, it shall be the duty of the board of supervisors to call an election at which there shall be submitted to the qualified electors of the county the question of whether or not the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, shall be legal in the unincorporated areas of such county as provided in this chapter.  Such election shall be held and conducted by the county election commissioners on a date fixed by the order of the board of supervisors, which date shall not be more than sixty (60) days from the date of the filing of the petition.  Notice thereof shall be given by publishing such notice once each week for at least three (3) consecutive weeks in some newspaper published in the county or if no newspaper be published therein, by such publication in a newspaper in an adjoining county and having a general circulation in the county involved.  The election shall be held not earlier than fifteen (15) days from the first publication of such notice.

          (b)  The election shall be held and conducted as far as may be possible in the same manner as is provided by law for the holding of general elections.  The ballots used at the election shall contain a brief statement of the proposition submitted and, on separate lines, the words "I vote FOR allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, in the unincorporated areas of ________ [Name of County] ( )" or "I vote AGAINST allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, in the unincorporated areas of ________ [Name of County] ( )" with appropriate boxes in which the voters may express their choice.  All qualified electors may vote by marking the ballot with a cross (x) or check (√) mark opposite the words of their choice.

          (c)  The election commissioners shall canvass and determine the results of the election and shall certify the same to the board of supervisors which shall adopt and spread upon its minutes an order declaring such results.  If, in such election, a majority of the qualified electors participating therein vote in favor of allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, in the unincorporated areas of the county, this chapter shall be applicable and operative in the unincorporated areas of such county, and the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, in the unincorporated areas of the county shall be lawful to the extent and in the manner permitted in this chapter.  If, on the other hand, a majority of the qualified electors participating in the election vote against allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, then it shall be illegal to cultivate, process, sell and/or distribute medical cannabis and cannabis products, as applicable, in the unincorporated areas of the county.  In either case, no further election shall be held in the county under the provisions of this section for a period of two (2) years from the date of the prior election and then only upon the filing of a petition requesting same signed by at least twenty percent (20%) or fifteen hundred (1500), whichever number is the lesser, of the qualified electors of the county as provided in this section.

     (4)  (a)  Upon presentation and filing of a proper petition requesting that the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, be legal in the municipality signed by at least twenty percent (20%) or fifteen hundred (1500), whichever number is the lesser, of the qualified electors of the municipality, it shall be the duty of the governing authorities of the municipality to call an election at which there shall be submitted to the qualified electors of the municipality the question of whether or not the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, shall be legal in the municipality as provided in this chapter.  Such election shall be held and conducted on a date fixed by the order of the governing authorities of the municipality, which date shall not be more than sixty (60) days from the date of the filing of the petition.  Notice thereof shall be given by publishing such notice once each week for at least three (3) consecutive weeks in some newspaper published in the municipality or if no newspaper be published therein, by such publication in a newspaper having a general circulation in the municipality involved.  The election shall be held not earlier than fifteen (15) days from the first publication of such notice.

          (b)  The election shall be held and conducted as far as may be possible in the same manner as is provided by law for the holding of municipal elections.  The ballots used at the election shall contain a brief statement of the proposition submitted and, on separate lines, the words "I vote FOR allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, in ________ [Name of Municipality] ( )" or "I vote AGAINST allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, in ________ [Name of Municipality] ( )" with appropriate boxes in which the voters may express their choice.  All qualified electors may vote by marking the ballot with a cross (x) or check (√) mark opposite the words of their choice.

          (c)  The election commissioners shall canvass and determine the results of the election and shall certify the same to the governing authorities which shall adopt and spread upon their minutes an order declaring such results.  If, in such election, a majority of the qualified electors participating therein vote in favor of allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, this chapter shall be applicable and operative in such municipality and the cultivation, processing, sale, and/or distribution of medical cannabis and cannabis products, as applicable, therein shall be lawful to the extent and in the manner permitted in this chapter.  If, on the other hand, a majority of the qualified electors participating in the election  vote against allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, as applicable, then it shall be illegal to cultivate, process, sell and/or distribute medical cannabis and cannabis products, as applicable, in the municipality.  In either case, no further election shall be held in the municipality under the provisions of this section for a period of two (2) years from the date of the prior election and then only upon the filing of a petition requesting same signed by at least twenty percent (20%) or fifteen hundred (1500), whichever number is the lesser, of the qualified electors of the municipality as provided in this section.

     (5)  Regardless of whether a county or municipality opts out of allowing the cultivation, processing, sale and/or distribution of medical cannabis and cannabis products, cardholders, cannabis testing facilities, cannabis research facilities, cannabis transportation entities and cannabis disposal entities may possess medical cannabis in the municipality or county if done in accordance with this chapter.

     (6)  (a)  If a municipality that has opted out under this section annexes a geographic area which contains a licensed entity operating under the provisions of this chapter, then the licensed entity may continue its operation in that municipality's newly annexed geographic area.

          (b)  If a licensed entity operating under the provisions of this chapter is located in a municipality that contracts its corporate boundaries thereby causing the geographic area in which the licensed entity is located to no longer be in the municipality and instead in an unincorporated area of a county that has opted out under this section, then the licensed entity may continue its operation in that area of the county.

     (7)  In any county or municipality in which real property is owned, leased or otherwise controlled by a waterway district or water management district created in Title 51, Mississippi Code of 1972, the decision of the county or municipality to opt out or opt in as provided in this section shall be binding on all real property in such district.  The ordinances of a county or municipality related to the provisions of this chapter shall be applicable to all real property within the respective boundaries of the county or municipality in such district.

     SECTION 29.  Section 41-137-59, Mississippi Code of 1972, is brought forward as follows:

     41-137-59.  (1)  Any person or entity aggrieved by a final decision or order of an agency under the provisions of this chapter may petition for judicial review of the final decision or order.

     (2)  (a)  The petition shall be filed within twenty (20) days after the issuance of the agency's final decision or order.  The petition shall be filed in the circuit court of the county in which the appellant resides.  If the appellant is a nonresident of this state, the appeal shall be made to the Circuit Court of the First Judicial District of Hinds County, Mississippi.

          (b)  The review by the circuit court shall be based on the record made before the agency.  Before filing a petition under subsection (1) of this section, a petitioner shall obtain from the agency an estimate of the cost to prepare the entire record of the agency and shall pay to the agency the amount of the estimate.  The circuit court shall dismiss with prejudice any petition filed where it is shown that the petitioner failed to pay prior to filing the petition the estimate cost for preparation of the record.

          (c)  Any person or entity aggrieved by the decision of the circuit court may appeal to the Mississippi Supreme Court.

     SECTION 30.  Section 41-137-61, Mississippi Code of 1972, is brought forward as follows:

     41-137-61.  All fees and fines collected by the MDOR and MDOH according to the provisions of this chapter shall be deposited into the State General Fund.

     SECTION 31.  Section 41-137-63, Mississippi Code of 1972, is brought forward as follows:

     41-137-63.  (1)  (a)  There is established a Medical Cannabis Advisory Committee, which shall be the committee that is required to advise the Legislature about medical cannabis and cannabis product, patient care, services and industry.

          (b)  The advisory committee shall consist of nine (9) members, as follows:

              (i)  The Governor shall appoint three (3) members to the committee, as follows:

                   1.  One (1) representative from the MDOH;

                   2.  One (1) registered qualifying patient; and

                   3.  One (1) physician with experience in medical cannabis issues;

              (ii)  The Lieutenant Governor shall appoint three (3) members, as follows:

                   1.  One (1) owner or agent of a medical cannabis cultivation facility;

                   2.  One (1) representative from the MDOH; and

                   3.  One (1) qualified certified nurse practitioner, physician assistant or optometrist;

              (iii)  The Speaker of the House shall appoint three (3) members, as follows:

                    1.  One (1) owner or agent of a medical cannabis processing facility;

                   2.  One (1) owner or agent of a medical cannabis dispensary; and

                   3.  One (1) representative from the MDOR.

          (c)  The advisory committee shall meet at least two (2) times per year for the purpose of evaluating and making recommendations to the Legislature and the MDOH and MDOR regarding:

              (i)  The ability of qualifying patients in all areas of the state to obtain timely access to high-quality medical cannabis;

              (ii)  The effectiveness of the medical cannabis establishments in serving the needs of registered qualifying patients, including the provision of educational and support services by dispensaries, the reasonableness of their prices, security issues, and the sufficiency of the number operating to serve the state's registered qualifying patients;

              (iii)  The effectiveness of the cannabis testing facilities, including whether a sufficient number are operating;

              (iv)  The sufficiency of the regulatory and security safeguards contained in this chapter and adopted by the MDOH to ensure that access to and use of cannabis cultivated is provided only to cardholders;

              (v)  Any recommended additions or revisions to the MDOH and MDOR rules and regulations or this chapter, including relating to security, safe handling, labeling, nomenclature, and whether additional types of licenses should be made available; and

              (vi)  Any research studies regarding health effects of medical cannabis for patients.

          (d)  The advisory committee shall accept public comment in writing and in person at least once per year.  The advisory committee shall meet at least two (2) times per year and advisory committee members shall be furnished written notice of the meetings at least ten (10) days before the date of the meeting.

          (e)  The chairman of the advisory committee shall be elected by the voting members of the committee annually and shall not serve more than two (2) consecutive years as chairman.

          (f)  The members of the advisory committee specified in paragraph (b) of this subsection shall serve for terms that are concurrent with the terms of members of the Legislature, and any member appointed under paragraph (b) may be reappointed to the advisory committee.  The members of the advisory committee specified in paragraph (b) shall serve without compensation, but shall receive reimbursement to defray actual expenses incurred in the performance of committee business as authorized by law. 

     (2)  This section shall stand repealed on December 31, 2026.

     SECTION 32.  Section 41-137-65, Mississippi Code of 1972, is brought forward as follows:

     41-137-65.  In the negotiation and execution of all information technology contracts as necessary under the Mississippi Medical Cannabis Act, the executive director of the State Department of Health and the executive director of the Department of Revenue may negotiate a limitation on the liability of prospective contractors to the state, provided that such limitation affords the state reasonable protection.

     SECTION 33.  Section 41-137-67, Mississippi Code of 1972, is brought forward as follows:

     41-137-67.  A public utility as defined in Section 77-3-3(d)(iv) shall not deny or refuse services to any business entity solely on the basis that the entity is a licensee under the Mississippi Medical Cannabis Act.

     SECTION 34.  This act shall take effect and be in force from and after July 1, 2026.