MCL - Section 333.27958

Initiated Law 1 of 2018

333.27958 Rules; limitations.

Sec. 8.

    (1) The cannabis regulatory agency shall promulgate rules to implement and administer this act that include all of the following:
    (a) Procedures for issuing a state license pursuant to section 9 and for renewing, suspending, and revoking a state license.
    (b) A schedule of fees in amounts not more than necessary to pay for implementation, administration, and enforcement costs of this act and that relate to the size of each licensee or the volume of business conducted by the licensee.
    (c) Qualifications for licensure that are directly and demonstrably related to the operation of a marihuana establishment. However, a prior conviction solely for a marihuana-related offense must not disqualify an individual or otherwise affect eligibility for licensure, unless the offense involved distribution of a controlled substance to a minor.
    (d) Requirements and standards for safe cultivation, processing, and distribution of marihuana by marihuana establishments, including health standards to ensure the safe preparation of marihuana-infused products and prohibitions on pesticides that are not safe for use on marihuana.
    (e) Testing, packaging, and labeling standards, procedures, and requirements for marihuana, including, but not limited to, all of the following:
    (i) A maximum THC level for marihuana-infused products.
    (ii) A requirement that a representative sample of marihuana be tested by a marihuana safety compliance facility.
    (iii) A requirement that the amount of marihuana or marihuana concentrate contained within a marihuana-infused product be specified on the product label.
    (iv) A requirement that all marihuana sold through marihuana retailers and marihuana microbusinesses include on the exterior of the marihuana packaging the following warning printed in clearly legible type and surrounded by a continuous heavy line:
    (f) Security requirements, including lighting, physical security, and alarm requirements, and requirements for securely transporting marihuana between marihuana establishments. The requirements described in this subdivision must not prohibit cultivation of marihuana outdoors or in greenhouses.
    (g) Record keeping requirements for marihuana establishments and monitoring requirements to track the transfer of marihuana by licensees.
    (h) Requirements for the operation of marihuana secure transporters to ensure that all marihuana establishments are properly serviced.
    (i) Reasonable restrictions on advertising, marketing, and display of marihuana and marihuana establishments.
    (j) A plan to promote and encourage participation in the marihuana industry by people from communities that have been disproportionately impacted by marihuana prohibition and enforcement and to positively impact those communities.
    (k) Penalties for failure to comply with a rule promulgated pursuant to this section or for a violation of this act by a licensee, including civil fines and suspension, revocation, or restriction of a state license.
    (l) Informational pamphlet standards for marihuana retailers and marihuana microbusinesses, including, but not limited to, a requirement to make available to every customer at the time of sale a pamphlet measuring 3.5 inches by 5 inches that includes safety information related to marihuana use by minors and the poison control hotline number.
    (m) Procedures and standards for approving an appointee to operate a marihuana establishment under section 9a.
    (n) A limit on the total amount of THC that a product described in section 3(f)(v)(A) may contain.
    (2) The cannabis regulatory agency may promulgate rules to do any of the following:
    (a) Provide for the issuance of additional types or classes of state licenses to operate marihuana-related businesses, including licenses that authorize any of the following:
    (i) Limited cultivation, processing, transportation, delivery, storage, sale, or purchase of marihuana.
    (ii) Consumption of marihuana within designated areas.
    (iii) Consumption of marihuana at special events in limited areas and for a limited time.
    (iv) Cultivation for purposes of propagation.
    (v) Facilitation of scientific research or education.
    (b) Regulate the cultivation, processing, distribution, and sale of industrial hemp.
    (c) Exclude from the definition of THC in section 3 a tetrahydrocannabinol if, after the cannabis regulatory agency makes findings with respect to each of the following factors, the cannabis regulatory agency determines that the tetrahydrocannabinol does not have a potential for abuse:
    (i) The actual or relative potential for abuse of the tetrahydrocannabinol.
    (ii) The scientific evidence of the tetrahydrocannabinol's pharmacological effect, if known.
    (iii) The state of current scientific knowledge regarding the tetrahydrocannabinol.
    (iv) The history and current pattern of abuse of the tetrahydrocannabinol.
    (v) The scope, duration, and significance of abuse of the tetrahydrocannabinol.
    (vi) The tetrahydrocannabinol's risk to the public health.
    (vii) The potential of the tetrahydrocannabinol to produce psychic or physiological dependence liability.
    (3) The cannabis regulatory agency shall not promulgate a rule that is unreasonably impracticable or that does any of the following:
    (a) Establishes a limit on the number of any type of state license that may be granted.
    (b) Requires a customer to provide a marihuana retailer with identifying information other than identification to determine the customer's age or requires the marihuana retailer to acquire or record personal information about customers other than information typically required in a retail transaction.
    (c) Prohibits a marihuana establishment from operating at a shared location of a marihuana facility operating pursuant to the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, or prohibits a marihuana grower, marihuana processor, or marihuana retailer from operating within a single facility.
    (4) A rule promulgated under this act must be promulgated pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

History: 2018, Initiated Law 1, Eff. Dec. 6, 2018 ;-- Am. 2020, Act 31, Imd. Eff. Feb. 20, 2020 ;-- Am. 2020, Act 208, Imd. Eff. Oct. 15, 2020 ;-- Am. 2021, Act 56, Eff. Oct. 11, 2021 ;-- Am. 2023, Act 166, Imd. Eff. Oct. 19, 2023
Compiler's Notes: This new act was proposed by initiative petition pursuant to Const. 1963, art 2, section 9. The proposed language was certified to the legislature on April 26, 2018 with the 40-day consideration period lapsing on June 5, 2018. The initiative petition was submitted to the voters as proposal 18-1 at the November 6, 2018 general election where it was approved 2,356,422 for and 1,859,675 against.For the transfer of powers and duties of the department of licensing and regulatory affairs, including its bureau of marijuana regulation, to the marijuana regulatory agency, and abolishment of the bureau of marijuana regulation, see E.R.O. No. 2019-2, compiled at MCL 333.27001.For the transfer of powers and duties of the department of licensing and regulatory affairs to promulgate rules to regulate industrial hemp to the department of agriculture and rural development by type II transfer, see E.R.O. No. 2019-2, compiled at MCL 333.27001.For the renaming of the marijuana regulatory agency to the cannabis regulatory agency, see E.R.O. No. 2022-1, compiled at MCL 333.27002.For the renaming of the marijuana regulatory agency to cannabis regulatory agency; establishment of the authority of the cannabis regulatory agency to promulgate rules to regulate the cultivation, processing, distribution, and sale of industrial hemp, and transfer of the authority of the cannabis regulatory agency to promulgate rules to regulate the cultivation of industrial hemp to the department of agriculture and rural development, see E.R.O. No. 2022-1, compiled at MCL 333.27002.