HOUSE BILL No. 5681

 

May 29, 2012, Introduced by Reps. LeBlanc, Liss, Callton and Walsh and referred to the Committee on Judiciary.

 

      A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

by amending sections 7212 and 7214 (MCL 333.7212 and 333.7214),

 

section 7212 as amended by 2011 PA 88 and section 7214 as amended

 

by 1982 PA 352, and by adding article 8; and to repeal acts and

 

parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 7212. (1) The following controlled substances are

 

 2  included in schedule 1:

 

 3        (a) Any of the following opiates, including their isomers,

 

 4  esters, the ethers, salts, and salts of isomers, esters, and

 

 5  ethers, unless specifically excepted, when the existence of these

 

 6  isomers, esters, ethers, and salts is possible within the

 

 7  specific chemical designation:

 

 


Acetylmethadol            Difenoxin                Noracymethadol

Allylprodine              Dimenoxadol              Norlevorphanol

Alpha-acetylmethadol      Dimepheptanol            Normethadone

Alphameprodine            Dimethylthiambutene      Norpipanone

Alphamethadol             Dioxaphetyl butyrate     Phenadoxone

Benzethidine              Dipipanone               Phenampromide

Betacetylmethadol         Ethylmethylthiambutene   Phenomorphan

Betameprodine             Etonitazene              Phenoperidine

Betamethadol              Etoxeridine              Piritramide

10 Betaprodine               Furethidine              Proheptazine

11 Clonitazene               Hydroxypethidine         Properidine

12 Dextromoramide            Ketobemidone             Propiram

13 Diampromide               Levomoramide             Racemoramide

14 Diethylthiambutene        Levophenacylmorphan      Trimeperidine

15                           Morpheridine            

 

 

16        (b) Any of the following opium derivatives, their salts,

 

17  isomers, and salts of isomers, unless specifically excepted, when

 

18  the existence of these salts, isomers, and salts of isomers is

 

19  possible within the specific chemical designation:

 

 

20 Acetorphine               Drotebanol               Morphine-N-Oxide

21 Acetyldihydrocodeine      Etorphine                Myrophine

22 Benzylmorphine            Heroin                   Nicocodeine

23 Codeine methylbromide     Hydromorphinol           Nicomorphine

24 Codeine-N-Oxide           Methyldesorphine         Normorphine

25 Cyprenorphine             Methyldihydromorphine    Pholcodine

26 Desomorphine              Morphine methylbromide   Thebacon

27 Dihydromorphine           Morphine methylsulfonate

 

 

28        (c) Any material, compound, mixture, or preparation which


 

 1  contains any quantity of the following hallucinogenic substances,

 

 2  their salts, isomers, and salts of isomers, unless specifically

 

 3  excepted, when the existence of these salts, isomers, and salts

 

 4  of isomers is possible within the specific chemical designation:

 

 

2-Methylamino-1-phenylpropan-1-one

      Some trade and other names:

      Methcathinone

      Cat

      Ephedrone

10 3, 4-methylenedioxy amphetamine

11       5-methoxy-3, 4-methylenedioxy

12       amphetamine

13 3, 4, 5-trimethoxy amphetamine

14       Bufotenine

15       Some trade and other names:

16       3-(B-dimethylaminoethyl)-5 hydrozyindole

17       3-(2-dimethylaminoethyl)-5 indolol

18       N,N-dimethylserotonin;  5-hydroxy-N-dimethyltryptamine

19       Mappine

20 2, 5-Dimethoxyamphetamine

21       Some trade or other names:

22 2, 5-Dimethoxy-a-methylphenethylamine; 2,5-DMA

23 4-Bromo-2, 5-Dimethoxyamphetamine

24       Some trade or other names:

25       4-bromo-2, 5 dimethoxy-a-methylphenethylamine;  4-bromo

26       2,5-DMA

27 Diethyltryptamine

28       Some trade and other names:

29       N,N-Diethyltryptamine; DET


Dimethyltryptamine

      Some trade or other names:

      DMT

4-methyl-2, 5-dimethoxyamphetamine

      Some trade and other names:

      4-methyl-2, 5-dimethoxy-a-methyl-phenethylamine

      DOM, STP

4-methoxyamphetamine

      Some trade or other names:

10       4-methoxy-a-methylphenethylamine; paramethoxy  amphetamine;

11       PMA

12 Ibogaine

13       Some trade and other names:

14       7-Ethyl-6,6a,7,8,9,10,12,13

15       Octahydro-2-methoxy-6,9-methano-5H-

16       pyrido (1, 2:1, 2 azepino 4, 5-b) indole

17       tabernanthe iboga

18 Lysergic acid diethylamide

19 Marihuana Except as provided in subsection (2), marihuana

20 Mecloqualone

21 Mescaline

22 Peyote

23 N-ethyl-3 piperidyl benzilate

24 N-methyl-3 piperidyl benzilate

25 Psilocybin

26 Psilocyn

27 Thiophene analog of phencyclidine

28       Some trade or other names:

29       1-(1-(2-thienyl)cyclohexyl) piperidine)

30       2-thienyl analog of phencyclidine; TPCP

 

 


 1        (d) Synthetic Except as provided in subsection (2),

 

 2  synthetic equivalents of the substances contained in the plant,

 

 3  or in the resinous extractives of cannabis and synthetic

 

 4  substances, derivatives, and their isomers with similar chemical

 

 5  structure or pharmacological activity, or both, such as the

 

 6  following, are included in schedule 1:

 

 7        (i) /\1 cis or trans tetrahydrocannabinol, and their optical

 

 8  isomers.

 

 9        (ii) /\6 cis or trans tetrahydrocannabinol, and their optical

 

10  isomers.

 

11        (iii) /\3,4, cis or trans tetrahydrocannabinol, and their

 

12  optical isomers.

 

13        (e) Compounds Except as provided in subsection (2),

 

14  compounds of structures of substances referred to in subdivision

 

15  (d), regardless of numerical designation of atomic positions, are

 

16  included.

 

17        (f) Gamma-hydroxybutyrate and any isomer, salt, or salt of

 

18  isomer of gamma-hydroxybutyrate.

 

 

19       Some trade and other names:

20       Sodium oxybate

21       4-hydroxybutanoic acid monosodium salt

 

 

22        (g) 3,4-methylenedioxymethamphetamine.

 

 

23       Some trade and other names:

24       Ecstasy

25       MDMA

 


 

 1        (h) N-Benzylpiperazine

 

 

      Some trade and other names:

      BZP

      Benzylpiperazine

      1-(phenylmethyl)-piperazine

 

 

 6        (i) 3-Chlorophenylpiperazine

 

 

      Some trade and other names:

      MCPP

 

 

 9        (j) 1-(3-Trifluoromethylphenyl)piperazine

 

 

10       Some trade and other names:

11       TFMPP

 

 

12        (k) 4-Bromo-2,5-dimethoxybenzylpiperazine

 

 

13       Some trade and other names:

14       2C-B-BZP

 

 

15        (l) All of the following:

 

16        (i) (6aR,10aR)-9-(Hydroxymethyl)-6,6-dimethyl-3-(2-

 

17  methyloctan-2-yl)-6a,7,10,10a-tetrahydrobenzo[c]chromen-1-ol.

 

 

18       Some trade and other names:

19       HU-210

 

 

20        (ii) 2-[(1R,3S)-3-hydroxycyclohexyl]-5-(2-methyloctan-2-

 

21  yl)phenol and its side chain homologues.


 

 

      Some trade and other names:

      CP47,497

 

 

 3        (iii) 1-pentyl-3-(1-naphthoyl)indole.

 

 

      Some trade and other names:

      JWH-018

 

 

 6        (iv) 1-butyl-3-(1-naphthoyl)indole.

 

 

      Some trade and other names:

      JWH-073

 

 

 9        (v) (2-methyl-1-propyl-1H-indol-3-yl)-1-naphthalenyl-

 

10  methanone.

 

 

11       Some trade and other names:

12       JWH-015

 

 

13        (vi) [1-[2-(4-morpholinyl)ethyl]-1H-indol-3-yl]-1-

 

14  naphthalenyl-methanone.

 

 

15       Some trade and other names:

16       JWH-200

 

 

17        (vii) 1-(1-pentyl-1H-indol-3-yl)-2-(2-methoxyphenyl)-

 

18  ethanone.

 

 

19       Some trade and other names:

20       JWH-250


 

 

 1        (m) Mephedrone (4-methylmethcathinone).

 

 

      Some trade and other names:

      4-MMC, M-Cat, meow meow, miaow miaow, bounce, bubbles, bubble

love, mad cow, plant food, drone, and neo doves

 

 

 5        (n) 4-Methyl-alpha-pyrrolidinobutyrophenone.

 

 

      Some trade and other names:

      MPBP

 

 

 8        (o) Methylenedioxypyrovalerone

 

 

      Some trade and other names:

10       MDPV, Bath salts, charge plus, cloud nine, hurricane Charlie,

11 ivory wave, ocean, red dove, scarface, sonic, white dove, white

12 lightning

 

 

13        (p) 5,6-Methylenedioxy-2-aminoindane

 

 

14       Some trade and other names:

15       MDAI

16       Woof-woof

 

 

17        (q) Naphyrone (Naphthylpyrovalerone)

 

 

18       Some trade and other names:

19       NRG-1

20       Rave

 

 


 1        (r) Pyrovalerone (1-(4-Methylphenyl)-2-(1-pyrrolidinyl)-1-

 

 2  pentanone)

 

 3        (s) Catha edulis; except as provided in subdivision (t) and

 

 4  section 7218, all parts of the plant presently classified

 

 5  botanically as catha edulis, whether growing or not; the leaves

 

 6  and seeds of that plant; any extract from any part of that plant;

 

 7  and every compound, salt, derivative, mixture, or preparation of

 

 8  that plant or its leaves, seeds, or extracts.

 

 

      Some trade and other names:

10       Khat

11       Qat

 

 

12        (t) Cathinone.

 

13        (u) Salvia divinorum; except as provided in subdivision (v),

 

14  all parts of the plant presently classified botanically as salvia

 

15  divinorum, whether growing or not; the leaves and seeds of that

 

16  plant; any extract from any part of that plant; and every

 

17  compound, salt, derivative, mixture, or preparation of that plant

 

18  or its leaves, seeds, or extracts.

 

19        (v) Salvinorin A.

 

20        (2) Marihuana and the substances described in subsection

 

21  (1)(d) and (e) are schedule 2 controlled substances if they are

 

22  manufactured, obtained, stored, dispensed, possessed, and used in

 

23  compliance with article 8 or are obtained, stored, possessed, and

 

24  used in compliance with the Michigan medical marihuana act, 2008

 

25  IL 1, MCL 333.26421 to 333.26430.

 

26        (3) (2) For purposes of subsection (1), "isomer" includes

 


 1  the optical, position, and geometric isomers.

 

 2        Sec. 7214. The following controlled substances are included

 

 3  in schedule 2:

 

 4        (a) Any of the following substances, except those narcotic

 

 5  drugs listed in other schedules, whether produced directly or

 

 6  indirectly by extraction from substances of vegetable origin, or

 

 7  independently by means of chemical synthesis, or by combination

 

 8  of extraction and chemical synthesis:

 

 9        (i) Opium and opiate, and any salt, compound, derivative, or

 

10  preparation of opium or opiate excluding nalaxone and its salts,

 

11  and excluding naltrexone and its salts, but including the

 

12  following:

 

 

13           Raw opium                    Etorphine hydrochloride

14           Opium extracts               Hydrocodone

15           Opium Fluid-extracts         Hydromorphone

16           Powdered opium               Metopon

17           Granulated opium             Morphine

18           Tincture of opium            Oxycodone

19           Codeine                      Oxymorphone

20           Ethylmorphine                Thebaine

 

 

21        (ii) A salt, compound, derivative, or preparation thereof

 

22  which is chemically equivalent to or identical with a substance

 

23  referred to in this subdivision, (a), except that these

 

24  substances do not include the isoquinoline alkaloids of opium.

 

25        (iii) Opium poppy, poppy straw, and concentrate of poppy

 

26  straw, the crude extract of poppy straw in either liquid, solid,

 

27  or powder form, which contains the phenanthrene alkaloids of the


 

 1  opium poppy.

 

 2        (iv) Coca leaves and any salt, compound, derivative, or

 

 3  preparation thereof which is chemically equivalent to or

 

 4  identical with any of these substances, except that the

 

 5  substances do not include decocainized coca leaves or extraction

 

 6  of coca leaves which extractions do not contain cocaine or

 

 7  ecgonine. The substances include cocaine, its salts,

 

 8  stereoisomers, and salts of stereoisomers when the existence of

 

 9  the salts, stereoisomers, and salts of stereoisomers is possible

 

10  within the specific chemical designation.

 

11        (b) Any of the following opiates, including their isomers,

 

12  esters, ethers, salts, and salts of isomers, when the existence

 

13  of these isomers, esters, ethers, and salts is possible within

 

14  the specific chemical designation:

 

 

15           Alphaprodine                 Fentanyl

16           Anileridine                  Isomethadone

17           Bezitramide                  Levomethorphan

18           Dihydrocodeine               Levorphanol

19           Diphenoxylate                Metazocine

20

21                            Methadone

22 Methadone-Intermediate, 4-cyano-2dimethylamino-4, 4-diphenyl butane

23 Moramide-Intermediate, 2-methyl-3-morpholino-1,

24 1-diphenylpropane-carboxylic acid

25

26                            Pethidine

27 Pethidine-Intermediate-A, 4-cyano-1-methyl-4-phenylpiperidine

28 Pethidine-Intermediate-B, ethyl-4-phenylpiperidine-4-carboxylate


Pethidine-Intermediate-C, 1-methyl-4-phenylpiperidine-4-

carboxylic acid

          Phenazocine                  Racemethorphan

          Piminodine                   Racemorphan

 

 

 6        (c) Unless listed in another schedule, any material,

 

 7  compound, mixture, or preparation which contains any quantity of

 

 8  the following substances having potential for abuse associated

 

 9  with a stimulant effect on the nervous system:

 

10        (i) Amphetamine, its salts, optical isomers, and salts of its

 

11  optical isomers.

 

12        (ii) Any substance which contains any quantity of

 

13  methamphetamine, including its salts, stereoisomers, and salts of

 

14  stereoisomers.

 

15        (iii) Phenmetrazine and its salts.

 

16        (iv) Methylphenidate and its salts.

 

17        (d) Any material, compound, mixture, or preparation,

 

18  including its salts, isomers, and salts of isomers when the

 

19  existence of the salts, isomers, and salts of isomers is possible

 

20  within the specific chemical designation as listed in schedule 2,

 

21  which contains any quantity of the following substances having a

 

22  potential for abuse associated with the depressant effect on the

 

23  central nervous system: methaqualone, amobarbital, pentobarbital,

 

24  or secobarbital; or, any compound, mixture, or preparation

 

25  containing amobarbital, secobarbital, pentobarbital, or any salt

 

26  thereof in combination with itself, with another, or with 1 or

 

27  more other controlled substances.


 

 1        (e) Marihuana, but only for use as provided in sections 7335

 

 2  and 7336.article 8 and the Michigan medical marihuana act, 2008

 

 3  IL 1, MCL 333.26421 to 333.26430.

 

 4                            ARTICLE 8

 

 5                  PHARMACEUTICAL-GRADE CANNABIS

 

 6                             PART 81

 

 7                        GENERAL PROVISIONS

 

 8        Sec. 8101. (1) For purposes of this article, the words and

 

 9  phrases defined in sections 8103 to 8107 have the meanings

 

10  ascribed to them in those sections.

 

11        (2) In addition, article 1 contains general definitions and

 

12  principles of construction applicable to all articles in this

 

13  act.

 

14        Sec. 8103. (1) "Applicant" means the person submitting an

 

15  application for a new license or license renewal under part 82

 

16  and includes each individual identified in the application as an

 

17  owner, operator, officer, director, partner, member, or manager

 

18  of the applicant.

 

19        (2) "CBD" and "CBD acid" mean cannabidiol and cannabidiol

 

20  acid.

 

21        (3) "Director" means the director of the department.

 

22        (4) "Eligible patient" means an individual who meets the

 

23  requirements of part 84 and has been issued an enhanced

 

24  pharmaceutical-grade cannabis registration card.

 

25        (5) "Enhanced pharmaceutical-grade cannabis registration

 

26  card" means the registration card issued to an eligible patient

 

27  under part 84.


 

 1        (6) "Good moral character" means that term as defined in

 

 2  section 1 of 1974 PA 381, MCL 338.41.

 

 3        Sec. 8105. (1) "Marihuana" means that term as defined in

 

 4  section 7106 and includes pharmaceutical-grade cannabis.

 

 5        (2) "Medical use" means the purchase, sale, possession, use,

 

 6  internal possession, delivery, transfer, or transportation of

 

 7  pharmaceutical-grade cannabis or paraphernalia relating to the

 

 8  administration of pharmaceutical-grade cannabis to treat or

 

 9  alleviate an eligible patient's debilitating medical condition.

 

10        (3) "Michigan medical marihuana act" means the Michigan

 

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

 

12        (4) "Pharmaceutical-grade cannabis" means a grade of

 

13  cannabis that is cultivated for the purposes of this article;

 

14  that is free of chemical residues such as fungicides and

 

15  insecticides and is tested by validated methods to determine its

 

16  cannabinoid levels, specifically, THC and THC acid levels and CBD

 

17  and CBD acid levels and complies with the tolerances denoted in

 

18  tables 1, 2, and 3 of the subsection, for its microbial,

 

19  mycotoxin, and metal contents, including heavy metals; and that

 

20  meets any other necessary requirements to be considered in

 

21  compliance with good manufacturing practices as prescribed in

 

22  rules promulgated by the department under this article.

 

 

23                                TABLE 1

24                            Microbiological

25 Microbiological Analysis             FPL Specifications

26 Total coliforms                      <3 MPN/g


1  Std. plate count aerobic             <100 CFU/g

2  Std. plate count anaerobic           <100 CFU/g

3  Escherichia coli                     Absent

4  Salmonella                           Absent

5  Staphylococcus aureus                <100 CFU/g

6  Yeast and molds                      <100 CFU/g

8                                 TABLE 2

9                                Mycotoxins

10 Test                                 Specification

11 Aflatoxin B1                         <20 µg/kg of substance

12 Aflatoxin B2                         <20 µg/kg of substance

13 Aflatoxin O1                         <20 µg/kg of substance

14 Aflatoxin O2                         <20 µg/kg of substance

15 Ochratoxin A                         <20 µg/kg of substance

16

17                                TABLE 3

18                              Heavy Metals

19 Metal                                NHP Acceptable Limits

20                                      µg/kg bw/day

21 Arsenic                              <0.14

22 Cadmium                              <0.09

23 Lead                                 <0.29

24 Mercury                              <0.29

 

 

25        (5) "Pharmaceutical-grade cannabis fund" or "fund" means the

 

26  pharmaceutical-grade cannabis fund created in section 8113.

 

27        (6) "Pharmaceutical-grade cannabis licensed facility" or

 

28  "licensed facility" means any secure entity, operation, or

 

29  facility at or through which pharmaceutical-grade cannabis is

 

30  cultivated, distributed, and sold in this state for lawful


 

 1  medical use as provided for in this article and the Michigan

 

 2  medical marihuana act. Pharmaceutical-grade cannabis licensed

 

 3  facility does not include a qualifying patient or primary

 

 4  caregiver who possesses or cultivates marihuana in the manner

 

 5  prescribed in the Michigan medical marihuana act or an eligible

 

 6  patient who possesses pharmaceutical-grade cannabis in the manner

 

 7  prescribed in this article.

 

 8        Sec. 8107. (1) "Primary caregiver" means an individual who

 

 9  has been issued a registry identification card as a primary

 

10  caregiver under the Michigan medical marihuana act.

 

11        (2) "Qualifying patient" means an individual who has been

 

12  issued a registry identification card as a qualifying patient

 

13  under the Michigan medical marihuana act.

 

14        (3) "THC" means delta-9-tetrahydrocannabinol and

 

15  tetrahydrocannabinol acid.

 

16        Sec. 8111. (1) Beginning on the effective date of this

 

17  article, the director may charge a reasonable fee for licensing,

 

18  registration, inspection, testing, or other activity or service

 

19  provided by the department under this article. The department may

 

20  establish separate or additional administrative fees under this

 

21  section to process the application for and the issuance of new or

 

22  renewal enhanced pharmaceutical-grade cannabis registration cards

 

23  under part 84, or subject to subsection (2), the department may

 

24  utilize fees established in the rules promulgated under section 5

 

25  of the Michigan medical marihuana act, MCL 333.26425, for that

 

26  purpose. All fees permitted under this section shall be delivered

 

27  to the state treasurer on a monthly basis for deposit in the


 

 1  pharmaceutical-grade cannabis fund.

 

 2        (2) Before collecting a fee under this article, the

 

 3  department shall develop and publish a comprehensive schedule of

 

 4  fees. The schedule shall include a description of each activity

 

 5  or service and the maximum fee charged for that activity or

 

 6  service. The department shall include a statement of the

 

 7  rationale used in determining the fees contained in the schedule.

 

 8  The department shall revise the fee schedule from time to time so

 

 9  that the amount of fees collected under this article does not

 

10  exceed the amount necessary to fund the duties of the department

 

11  under this article.

 

12        Sec. 8113. (1) The pharmaceutical-grade cannabis fund is

 

13  created within the state treasury. In addition to the fees

 

14  described in section 8111, the state treasurer may receive money

 

15  or other assets from any source for deposit into the fund. The

 

16  state treasurer shall direct the investment of the fund. The

 

17  state treasurer shall credit to the fund interest and earnings

 

18  from fund investments. Money in the fund at the close of the

 

19  fiscal year shall remain in the fund and shall not lapse to the

 

20  general fund.

 

21        (2) The department is the administrator of the

 

22  pharmaceutical-grade cannabis fund for auditing purposes and the

 

23  department shall expend money from the fund, upon appropriation,

 

24  only for the direct and indirect costs associated with

 

25  implementing, administering, and enforcing this article.

 

26        Sec. 8115. The department shall promulgate rules necessary

 

27  to carry out this article and may appoint an advisory committee


 

 1  to assist in rule development. The rules shall address, but are

 

 2  not required to be limited to addressing, all of the following

 

 3  subjects:

 

 4        (a) If not specifically provided for in this article,

 

 5  activities necessary for the compliance with or enforcement of or

 

 6  activities that constitute a violation of this article,

 

 7  including, but not limited to, procedures and grounds for

 

 8  denying, suspending, or revoking a license or registration under

 

 9  this article.

 

10        (b) Specification of the duties of the employees, agents,

 

11  and contractors of the department.

 

12        (c) Instructions for local health departments and law

 

13  enforcement officers.

 

14        (d) All forms necessary or convenient for the

 

15  implementation, administration, and enforcement of this article.

 

16        (e) Activities that constitute or result in

 

17  misrepresentation or unfair, deceptive practices.

 

18        (f) Procedures to issue individual identification cards to

 

19  applicants and to employees of pharmaceutical-grade cannabis

 

20  licensed facilities based upon a fingerprint-based criminal

 

21  history check or a name-based criminal history check if the

 

22  applicant's or employee's fingerprints are unclassifiable before

 

23  issuing the card.

 

24        (g) Specification of the minimum requirements for the

 

25  cultivation, distribution, and sale of pharmaceutical-grade

 

26  cannabis, including specifications on legitimate sources of seeds

 

27  to cultivate pharmaceutical-grade cannabis.


 

 1        (h) Regulation of manufacturing, inventory control, storage,

 

 2  warehousing, distribution, and transportation of marihuana under

 

 3  this article.

 

 4        (i) Health and sanitary requirements for pharmaceutical-

 

 5  grade cannabis licensed facilities.

 

 6        (j) Record keeping, record retention, record storage, and

 

 7  record security requirements for pharmaceutical-grade cannabis

 

 8  licensed facilities.

 

 9        (k) Audit requirements for pharmaceutical-grade cannabis

 

10  licensed facilities, which shall include self reporting of

 

11  inventory on a monthly basis, subject to inspection by designated

 

12  state and federal authorities.

 

13        (l) Physical security requirements for pharmaceutical-grade

 

14  cannabis that at a minimum include lighting and alarms.

 

15        (m) State licensing procedures, including renewals, and the

 

16  form and content of licensing applications and licenses.

 

17        (n) The reporting and transmittal of monthly sales and

 

18  income tax payments for pharmaceutical-grade cannabis licensed

 

19  facilities.

 

20        (o) Authorization for the department of treasury to have

 

21  access to licensing information to ensure sales and income tax

 

22  payments for pharmaceutical-grade cannabis licensed facilities.

 

23        (p) Activities that constitute lawful and unlawful financial

 

24  arrangements between pharmaceutical-grade cannabis licensed

 

25  facilities.

 

26        (q) The size, dimensions, and acceptable colors for

 

27  pharmaceutical-grade cannabis licensed facility signage.


 

 1        (r) The quantity of pharmaceutical-grade cannabis plants and

 

 2  dried plant material that a pharmaceutical-grade cannabis

 

 3  licensed facility may possess in its inventory at any time.

 

 4        (s) Regulations regarding advertising, including

 

 5  prohibitions on the inclusion of pricing information, the use of

 

 6  logos or other forms of branding, or the depiction of any part of

 

 7  a Marihuana plant, the whole marihuana plant, marihuana leaves,

 

 8  or smoking or drug paraphernalia.

 

 9        (t) A process to revoke an enhanced pharmaceutical-grade

 

10  cannabis registration card issued under part 84 if a patient is

 

11  no longer an eligible patient under that part.

 

12        (u) Other matters necessary for the fair, impartial,

 

13  stringent, and comprehensive implementation, administration, and

 

14  enforcement of this article to protect the health, safety, and

 

15  welfare of the residents of this state.

 

16        Sec. 8117. The department shall establish a pharmaceutical-

 

17  grade cannabis licensed facility registry. The registry shall be

 

18  an online database that contains information regarding the

 

19  pharmaceutical-grade cannabis licensed facilities licensed under

 

20  part 82.

 

21        Sec. 8119. By January 31 of each calendar year, the

 

22  department shall submit to the legislature an annual report for

 

23  the previous calendar year that contains all of the following

 

24  information:

 

25        (a) The number of licenses issued under part 82.

 

26        (b) The number of applications filed for enhanced

 

27  pharmaceutical-grade cannabis registration cards under part 84.


 

 1        (c) The number of enhanced pharmaceutical-grade cannabis

 

 2  registration cards issued to eligible patients in each county.

 

 3  The department shall not include in the report any identifying

 

 4  information about eligible patients or physicians providing

 

 5  physician certifications under part 84.

 

 6        (d) The nature of the debilitating medical conditions of the

 

 7  eligible patients.

 

 8        (e) The number of enhanced pharmaceutical-grade cannabis

 

 9  registration cards revoked under part 84.

 

10        (f) The number of physicians providing physician

 

11  certifications for eligible patients under part 84.

 

12        (g) The total amount of fees collected under this article.

 

13        (h) All costs related to performing the duties of the

 

14  department under this article.

 

15        (i) Fines, suspensions, or license revocations that were

 

16  imposed by the department under this article.

 

17        (j) Any other information the department considers

 

18  appropriate under this article.

 

19                               PART 82

 

20                        FACILITY LICENSING

 

21        Sec. 8201. (1) To protect the health, safety, and welfare of

 

22  residents of this state, the department shall license facilities

 

23  under this article to cultivate, manufacture, distribute, and

 

24  sell pharmaceutical-grade cannabis in this state. The department

 

25  shall implement, administer, and enforce this article to ensure

 

26  that a safe, pure, dosage—consistent grade of pharmaceutical-

 

27  grade cannabis is available to eligible patients and qualifying


 

 1  patients who are residents of this state.

 

 2        (2) This article does not prevent a qualifying patient or a

 

 3  primary caregiver from engaging in any activity that is lawful

 

 4  under the Michigan medical marihuana act. This article does not

 

 5  affect and is not inconsistent with the Michigan medical

 

 6  marihuana act.

 

 7        Sec. 8203. (1) A person shall not operate a pharmaceutical-

 

 8  grade cannabis facility in this state until issued a license

 

 9  under this part. A license issued under this part is not

 

10  assignable or transferable to any other person.

 

11        (2) Before a pharmaceutical-grade cannabis licensed facility

 

12  is established, the owner or operator of that facility shall

 

13  submit an application, a detailed business plan, complete

 

14  drawings of its physical plant, and any other requested

 

15  information to the department for examination and approval. The

 

16  drawings shall be drawn to an indicated scale, give the relative

 

17  location of the pharmaceutical-grade cannabis licensed facility,

 

18  and illustrate all rooms, buildings, facilities, and equipment to

 

19  be used in the cultivation, distribution, or sale of

 

20  pharmaceutical-grade cannabis under this article. Specifications

 

21  and other information prescribed in rules promulgated under this

 

22  article shall accompany the drawings.

 

23        (3) When the construction and establishment of a proposed

 

24  pharmaceutical-grade cannabis licensed facility are completed,

 

25  the owner or operator of the proposed pharmaceutical-grade

 

26  cannabis licensed facility shall notify the department. The

 

27  department shall inspect the buildings and premises at which the


 

 1  pharmaceutical-grade cannabis licensed facility is contemplated.

 

 2        (4) Upon compliance by an applicant with the requirements of

 

 3  this article, the department shall issue a pharmaceutical-grade

 

 4  cannabis licensed facility license. The department shall issue a

 

 5  license under this part for a period of 1 year.

 

 6        Sec. 8205. (1) The department shall not issue a license

 

 7  under this part to an applicant to operate a pharmaceutical-grade

 

 8  cannabis licensed facility unless the department is satisfied

 

 9  that all of the following requirements are met:

 

10        (a) All fees required under this article have been paid.

 

11        (b) The applicant will operate the licensed facility in

 

12  compliance with this article.

 

13        (c) The applicant is an adult of good moral character.

 

14        (d) The applicant is not delinquent in filing any tax

 

15  returns with a taxing agency; paying any taxes, interest, or

 

16  penalties; paying any judgments due to a government agency;

 

17  repaying government-insured student loans; or paying child

 

18  support.

 

19        (e) The applicant will not hire or contract with any

 

20  individual in the course of operating a licensed facility without

 

21  first conducting a criminal history check in the manner

 

22  prescribed in rules promulgated under this article.

 

23        (f) The inspection of the premises and the operations of the

 

24  applicant did not reveal any reason to deny the license.

 

25        (g) The criminal history check conducted under subsection

 

26  (2) did not reveal any reason to deny the license.

 

27        (h) Any other criteria established in rules promulgated


 

 1  under this article.

 

 2        (2) At the time of filing an application for issuance or

 

 3  renewal of a pharmaceutical-grade cannabis licensed facility

 

 4  license, an applicant shall submit a set of his or her

 

 5  fingerprints and file personal history information concerning the

 

 6  person's qualifications for a license under this article. The

 

 7  department shall submit the fingerprints to the department of

 

 8  state police for the purpose of conducting fingerprint-based

 

 9  criminal history checks. The department of state police shall

 

10  forward the fingerprints to the federal bureau of investigation

 

11  for the purpose of conducting fingerprint-based criminal history

 

12  checks. The department may acquire a name-based criminal history

 

13  check for an applicant who has twice submitted to a fingerprint-

 

14  based criminal history check under this part and whose

 

15  fingerprints are unclassifiable. An applicant who has previously

 

16  submitted fingerprints under this part may request that the

 

17  fingerprints on file be used. The department shall use the

 

18  information resulting from the fingerprint-based criminal history

 

19  check to investigate and determine whether an applicant is

 

20  qualified to hold a license under this article. The department

 

21  may verify any of the information an applicant is required to

 

22  submit.

 

23        Sec. 8207. The department may conduct a public hearing under

 

24  the administrative procedures act of 1969 before issuing a

 

25  license under this part. The department shall not issue a license

 

26  under this part if it determines that the number of licenses

 

27  issued throughout the state is adequate for the reasonable needs


 

 1  of the eligible patients and qualifying patients in the community

 

 2  based on the department's own information or on testimony and

 

 3  evidence received at a public hearing held under this section.

 

 4        Sec. 8209. The department may delegate the duty of

 

 5  inspections for approval or renewal of pharmaceutical-grade

 

 6  cannabis licensed facility licenses to a local health department

 

 7  that has the technical and other capabilities to protect the

 

 8  public health, safety, and welfare in this field. The delegation

 

 9  shall not take place unless the department has first consulted

 

10  with an ad hoc committee that shall be appointed by the

 

11  department for the purpose of advising on that delegation.

 

12  Membership on the ad hoc committee shall include representatives

 

13  of the department, local public health agencies, and an

 

14  association that represents the pharmaceutical-grade cannabis

 

15  licensed facilities that would be subject to the inspections. If

 

16  delegated under this section, the state shall reimburse each

 

17  local health department the full amount of the fees collected, as

 

18  reimbursement for the cost of inspection, on vouchers certified

 

19  by the local health officer and approved by the department.

 

20        Sec. 8211. Not later than the thirtieth day before the

 

21  expiration of an annual license under this part, a person

 

22  operating a pharmaceutical-grade cannabis licensed facility

 

23  seeking relicensure shall apply for license renewal and shall pay

 

24  a fee as prescribed in this article. Upon compliance by an

 

25  applicant for license renewal with the requirements of this

 

26  article and payment of the license renewal fee, the department

 

27  shall issue a renewal license.


 

 1                             PART 83

 

 2    PHARMACEUTICAL-GRADE CANNABIS LICENSED FACILITY OPERATIONS

 

 3        Sec. 8301. (1) A pharmaceutical-grade cannabis licensed

 

 4  facility shall establish legal control of its physical location.

 

 5  The physical location shall meet all applicable state and local

 

 6  zoning laws.

 

 7        (2) Except as otherwise provided in this subsection, a

 

 8  pharmaceutical-grade cannabis licensed facility shall not be

 

 9  located within 1,000 feet of the perimeter of a public or private

 

10  elementary or secondary school, preschool, or day care center in

 

11  existence at the time the license is issued. The department or

 

12  applicable unit of government may authorize a variance from the

 

13  distance limitation of this subsection after a public hearing.

 

14        Sec. 8303. (1) A pharmaceutical-grade cannabis licensed

 

15  facility shall notify the department in writing within 10 days

 

16  after an officer, director, partner, member, manager, or employee

 

17  ceases to work at or otherwise be associated with the licensed

 

18  facility. That officer, director, partner, member, manager, or

 

19  employee shall immediately surrender his or her identification

 

20  card to the department.

 

21        (2) A pharmaceutical-grade cannabis licensed facility shall

 

22  notify the department in writing of the name, address, and date

 

23  of birth of an officer, director, partner, member, manager, or

 

24  employee before the individual is associated with or begins

 

25  working at the licensed facility. The licensed facility shall

 

26  obtain the individual's identification and have a criminal

 

27  history check conducted to determine if that individual is


 

 1  qualified to work at or be associated with the licensed facility

 

 2  under this article.

 

 3        (3) A pharmaceutical-grade cannabis licensed facility shall

 

 4  not acquire, possess, cultivate, deliver, transfer, transport,

 

 5  supply, sell, or dispense pharmaceutical-grade cannabis for any

 

 6  purpose except for the medical use by eligible patients and

 

 7  qualifying patients as provided in this article.

 

 8        (4) A pharmaceutical-grade cannabis licensed facility shall

 

 9  not possess more than the amount of pharmaceutical-grade cannabis

 

10  plants or dried pharmaceutical-grade cannabis allowed in its

 

11  inventory as prescribed in rules promulgated under this article.

 

12        (5) A pharmaceutical-grade cannabis licensed facility shall

 

13  destroy all marihuana that it cultivates or that is otherwise in

 

14  its possession that is determined not to be pharmaceutical-grade

 

15  cannabis. A licensed facility shall keep records of its

 

16  activities under this subsection in order to verify its

 

17  compliance to the department.

 

18        Sec. 8305. A pharmaceutical-grade cannabis licensed facility

 

19  may be a profit or nonprofit entity.

 

20        Sec. 8307. A pharmaceutical-grade cannabis licensed facility

 

21  may operate on any days of the week, but shall do all of the

 

22  following:

 

23        (a) Only operate between the hours of 8 a.m. and 7 p.m.

 

24        (b) Prohibit smoking or consumption of marihuana on its

 

25  premises.

 

26        (c) Maintain all records required under this article on its

 

27  premises.


 

 1        (d) Allow unannounced inspection of its premises during

 

 2  reasonable business hours by any state, federal, or local

 

 3  governmental agency authorized to inspect the licensed facility

 

 4  under this article.

 

 5        Sec. 8309. In addition to the provisions of section 2946 of

 

 6  the revised judicature act of 1961, 1961 PA 236, MCL 600.2946, in

 

 7  a product liability action against a pharmaceutical-grade

 

 8  cannabis licensed facility, pharmaceutical-grade cannabis is not

 

 9  defective or unreasonably dangerous, and the pharmaceutical-grade

 

10  cannabis licensed facility is not liable, if the product sold was

 

11  tested and determined to meet the standards for pharmaceutical-

 

12  grade cannabis under this article.

 

13                             PART 84

 

14       ENHANCED PHARMACEUTICAL-GRADE CANNABIS REGISTRATION

 

15        Sec. 8401. As used in this part:

 

16        (a) "Debilitating medical condition" means that term as

 

17  defined in section 3 of the Michigan medical marihuana act, MCL

 

18  333.26423, and includes debilitating medical conditions

 

19  established in rules promulgated under the Michigan medical

 

20  marihuana act or, if applicable, under this part.

 

21        (b) "Physician" means that term as defined in part 170 or

 

22  part 175.

 

23        (c) "Physician certification" means a document signed by a

 

24  physician regarding a patient that includes all of the following

 

25  information:

 

26        (i) The patient's debilitating medical condition as diagnosed

 

27  by the physician.


 

 1        (ii) A statement that the patient is under the regular and

 

 2  continuing care of the physician for that debilitating medical

 

 3  condition.

 

 4        (iii) If the patient has not been using medical marihuana

 

 5  under that physician's care, a statement that, in the physician's

 

 6  professional opinion, the patient is likely to receive

 

 7  therapeutic or palliative benefit from the use of pharmaceutical-

 

 8  grade cannabis to treat or alleviate the patient's debilitating

 

 9  medical condition or symptoms associated with the debilitating

 

10  medical condition. If the patient has been using pharmaceutical-

 

11  grade cannabis under that physician's care, a statement that, in

 

12  the physician's professional opinion, the patient has received

 

13  therapeutic or palliative benefit from the use of pharmaceutical-

 

14  grade cannabis to treat or alleviate the patient's debilitating

 

15  medical condition or symptoms associated with the debilitating

 

16  medical condition.

 

17        (iv) If applicable, a statement authorizing or limiting that

 

18  patient's activities as described in section 8411.

 

19        Sec. 8403. Notwithstanding the Michigan medical marihuana

 

20  act, the department shall establish, implement, and administer a

 

21  process under this part to issue an enhanced pharmaceutical-grade

 

22  cannabis registration card to an eligible patient for the use of

 

23  pharmaceutical-grade cannabis. An individual who is issued an

 

24  enhanced pharmaceutical-grade cannabis registration card under

 

25  this part is entitled to purchase pharmaceutical-grade cannabis

 

26  under this article and shall be afforded all of the protections

 

27  and rights given a qualifying patient for the medical use of


 

 1  marihuana under sections 4 and 6(g) and (h)(1) of the Michigan

 

 2  medical marihuana act, MCL 333.26424 and 333.26426.

 

 3        Sec. 8405. (1) The department may utilize rules promulgated

 

 4  under section 5 of the Michigan medical marihuana act, MCL

 

 5  333.26425, and the list of debilitating medical conditions

 

 6  established under the Michigan medical marihuana act and those

 

 7  rules, to administer the issuance of enhanced pharmaceutical-

 

 8  grade cannabis registration cards under this part.

 

 9        (2) The department may utilize rules promulgated under

 

10  section 5 of the Michigan medical marihuana act, MCL 333.26425,

 

11  regarding the manner in which it will consider applications for

 

12  and renewals of enhanced pharmaceutical-grade cannabis

 

13  registration cards and to administer the issuance of enhanced

 

14  pharmaceutical-grade cannabis registration cards under this part.

 

15        Sec. 8407. (1) The department shall issue an enhanced

 

16  pharmaceutical-grade cannabis registration card to an individual

 

17  who is an eligible patient under this part if the individual does

 

18  all of the following:

 

19        (a) Submits all of the information and documentation

 

20  required under section 6 of the Michigan medical marihuana act,

 

21  MCL 333.26426, to the department.

 

22        (b) Submits a physician certification to the department. If

 

23  the eligible patient is under the age of 18, submits a physician

 

24  certification from 2 physicians.

 

25        (c) Signs a written statement certifying that the eligible

 

26  patient will remain under the regular and continuing care of a

 

27  physician and an acknowledgment that the enhanced pharmaceutical-


 

 1  grade cannabis registration card will be revoked if the eligible

 

 2  patient does not remain under the regular and continuing care of

 

 3  a physician.

 

 4        (d) Submits any other information to the department that the

 

 5  department determines is necessary to administer the issuance of

 

 6  enhanced pharmaceutical-grade cannabis registration cards under

 

 7  this part.

 

 8        (2) The department shall provide for the automatic

 

 9  revocation of an enhanced pharmaceutical-grade cannabis

 

10  registration card under this part unless the eligible patient

 

11  submits a physician certification on or before the expiration of

 

12  60 days after the date the first enhanced pharmaceutical-grade

 

13  cannabis registration card is issued to that eligible patient

 

14  under this part and on or before the expiration of every 8-month

 

15  period after that date.

 

16        (3) An enhanced pharmaceutical-grade cannabis registration

 

17  card issued under this part is revoked if the department receives

 

18  notification from a physician who signed a physician

 

19  certification with regard to an eligible patient that states that

 

20  the patient has ceased to suffer from a debilitating medical

 

21  condition and the department notifies the individual who holds

 

22  the enhanced pharmaceutical-grade cannabis registration card of

 

23  that revocation.

 

24        Sec. 8409. (1) The department shall maintain a confidential

 

25  list of the individuals to whom the department has issued

 

26  enhanced pharmaceutical-grade cannabis registration cards under

 

27  this part. Individual names and other identifying information on


 

 1  the list is confidential and is exempt from disclosure under the

 

 2  freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

 

 3        (2) The department shall verify to law enforcement personnel

 

 4  whether an enhanced pharmaceutical-grade cannabis registration

 

 5  card is valid, without disclosing more information than is

 

 6  reasonably necessary to verify the authenticity of that an

 

 7  enhanced pharmaceutical-grade cannabis registration card.

 

 8        (3) A person, including any employee or official of the

 

 9  department or another state agency or local unit of government,

 

10  who discloses confidential information in violation of this part

 

11  is guilty of a misdemeanor punishable by imprisonment for not

 

12  more than 180 days or a fine of not more than $1,000.00, or both.

 

13  Notwithstanding this provision, department employees may notify

 

14  law enforcement personnel about falsified or fraudulent

 

15  information submitted to the department under this part.

 

16        Sec. 8411. (1) The sale, purchase, and use of

 

17  pharmaceutical-grade cannabis is allowed in this state to the

 

18  extent that they are carried out in compliance with this article.

 

19  An eligible patient may acquire, possess, and use pharmaceutical-

 

20  grade cannabis as prescribed in this article under a valid

 

21  enhanced pharmaceutical-grade cannabis registration card.

 

22        (2) Subject to section 8413, if authorized in a physician

 

23  certificate, an eligible person may operate, navigate, or be in

 

24  the actual physical control of a motor vehicle, aircraft, or

 

25  motorboat while using pharmaceutical-grade cannabis, unless

 

26  otherwise prohibited by law. A physician may include in a

 

27  statement that is a part of his or her physician certification


 

 1  under this part any other appropriate authorization for or

 

 2  limitation on that patient's activities while using

 

 3  pharmaceutical-grade cannabis.

 

 4        (3) An employer shall not take any retaliatory or adverse

 

 5  personnel action against an employee who is an eligible patient

 

 6  or an applicant for employment who is an eligible patient on the

 

 7  basis of the eligible patient's exercise of or attempt to

 

 8  exercise his or her rights under this article with respect to the

 

 9  use of pharmaceutical-grade cannabis.

 

10        Sec. 8413. (1) This article does not authorize an individual

 

11  to do any of the following:

 

12        (a) Undertake any task while using pharmaceutical-grade

 

13  cannabis if doing so would constitute negligence or professional

 

14  malpractice.

 

15        (b) Possess or use pharmaceutical-grade cannabis as follows:

 

16        (i) In a school bus.

 

17        (ii) On the grounds of a public or private elementary school,

 

18  secondary school, preschool, or day care center.

 

19        (iii) In any correctional facility.

 

20        (c) Smoke pharmaceutical-grade cannabis on any form of

 

21  public transportation, in any public place where smoking is

 

22  prohibited under part 126, or at a food service establishment

 

23  where smoking is prohibited under part 129.

 

24        (d) Unless otherwise authorized in the manner provided for

 

25  in section 8411, operate, navigate, or be in actual physical

 

26  control of a motor vehicle, aircraft, or motorboat while using

 

27  pharmaceutical-grade cannabis.


 

 1        (e) Use marihuana if that individual does not have a

 

 2  debilitating medical condition.

 

 3        (2) This article does not require any of the following:

 

 4        (a) A government medical assistance program or a commercial

 

 5  insurer, health maintenance organization, nonprofit health care

 

 6  corporation, or other third party payer to reimburse an

 

 7  individual for costs associated with the use of pharmaceutical-

 

 8  grade cannabis.

 

 9        (b) Except as otherwise provided for in section 8411, an

 

10  employer to accommodate the consumption of pharmaceutical-grade

 

11  cannabis in any workplace.

 

12        (c) Unless otherwise authorized in the manner provided for

 

13  in section 8411, an employer to accommodate an employee working

 

14  while under the influence of pharmaceutical-grade cannabis.

 

15        Sec. 8415. A person who makes a fraudulent representation to

 

16  a law enforcement official regarding any fact or circumstance

 

17  relating to the use of pharmaceutical-grade cannabis to avoid

 

18  arrest or prosecution is responsible for a state civil infraction

 

19  and may be fined not more than $500.00, which shall be in

 

20  addition to any other penalties that may apply for making a false

 

21  statement to a law enforcement official or for the unlawful use

 

22  of marihuana.

 

23                             PART 85

 

24                           ENFORCEMENT

 

25        Sec. 8501. (1) The department shall enforce this article and

 

26  shall conduct annual inspections of pharmaceutical-grade cannabis

 

27  licensed facilities to ensure compliance with the requirements of


 

 1  this article.

 

 2        (2) Upon a finding that an emergency exists requiring

 

 3  immediate action to protect the public health, safety, and

 

 4  welfare, the department may issue an order, without notice or

 

 5  hearing, reciting the existence of the emergency and providing

 

 6  for the protection of public health, safety, and welfare.

 

 7  Notwithstanding this act or the administrative procedures act of

 

 8  1969, the order shall be effective immediately. A person to whom

 

 9  the order is directed shall comply immediately but, on

 

10  application to the department, shall be afforded a hearing within

 

11  15 days. On the basis of the hearing, the emergency order shall

 

12  be continued, modified, or revoked not later than 30 days after

 

13  the hearing.

 

14        Sec. 8503. (1) In addition to any other penalties prescribed

 

15  or remedies provided in this article, the department may, on its

 

16  own motion or on receipt of a complaint, and after an

 

17  investigation and public hearing at which the pharmaceutical-

 

18  grade cannabis licensed facility licensee is afforded an

 

19  opportunity to be heard, suspend or revoke a facility license

 

20  issued under this article. The department may suspend or revoke a

 

21  license for any violation by the licensee, a board member, an

 

22  agent, or an employee of the licensed facility or of any of the

 

23  terms, conditions, or provisions of the license issued by the

 

24  department. The department may administer oaths and issue

 

25  subpoenas to require the presence of persons and the production

 

26  of papers, books, and records necessary to the determination of

 

27  any hearing that the department is authorized to conduct.


 

 1        (2) The department shall provide notice of suspension or

 

 2  revocation, as well as any required notice of a hearing, by

 

 3  mailing the same in writing to the licensed facility at the

 

 4  address contained in the license. A suspension shall not be for a

 

 5  longer period than 6 months. If a license is suspended or

 

 6  revoked, no part of the fees paid for the license under this

 

 7  article shall be returned to the licensee. The department may

 

 8  summarily suspend a license without notice pending any

 

 9  prosecution, investigation, or public hearing. Nothing in this

 

10  section shall prevent the summary suspension of a license for a

 

11  temporary period of not more than 15 days.

 

12        (3) If a decision of the department suspending a facility

 

13  license for 14 days or less becomes final, whether by failure of

 

14  the licensee to appeal the decision or by exhaustion of all

 

15  appeals and judicial review, the licensee may, before the

 

16  operative date of the suspension, petition for permission to pay

 

17  an administrative fine in lieu of having the license suspended

 

18  for all or part of the suspension period. Upon the receipt of the

 

19  petition, the department may, in its sole discretion, stay the

 

20  proposed suspension and cause any investigation to be made that

 

21  it considers appropriate and may, in its sole discretion, grant

 

22  the petition if the department determines that all of the

 

23  following requirements are met:

 

24        (a) The public health, safety, and welfare would not be

 

25  impaired by permitting the licensed facility to operate during

 

26  the period set for suspension and the payment of the

 

27  administrative fine will achieve the desired disciplinary


 

 1  purposes.

 

 2        (b) The books and records of the licensed facility are kept

 

 3  in such a manner that the loss of sales that the licensee would

 

 4  have suffered had the suspension gone into effect can be

 

 5  determined with reasonable accuracy.

 

 6        (c) The licensed facility has not had its license suspended

 

 7  or revoked or received a suspension stayed by payment of an

 

 8  administrative fine, during the 2 years immediately preceding the

 

 9  date of the motion or complaint that has resulted in a final

 

10  decision to suspend the license.

 

11        (4) The department shall establish the administrative fine

 

12  in lieu of suspension under subsection (3) at an amount of not

 

13  less than $500.00 or more than $1,000.00. The licensed facility

 

14  shall pay the administrative fine in lieu of suspension under

 

15  subsection (3) in the form of cash or in the form of a certified

 

16  check or cashier's check made payable to the state of Michigan.

 

17  Upon payment of the administrative fine in lieu of suspension

 

18  under subsection (3), the department shall enter its further

 

19  order permanently staying the imposition of the suspension. Fines

 

20  collected under this subsection shall be deposited in the

 

21  pharmaceutical-grade cannabis fund.

 

22        (5) In connection with any petition under subsection (3),

 

23  the department is limited to the granting of a stay as necessary

 

24  for it to complete its investigation and make its findings and,

 

25  if it makes any findings, to the granting of an order permanently

 

26  staying the imposition of the entire suspension or that portion

 

27  of the suspension not otherwise conditionally stayed. If the


 

 1  department does not make the findings required in subsection (3)

 

 2  and does not order the suspension permanently stayed, the

 

 3  suspension shall go into effect on the operative date finally set

 

 4  by the department.

 

 5        Sec. 8505. In any hearing held by the department under this

 

 6  article, a person shall not refuse, upon request of the

 

 7  department, to testify or provide other information on the

 

 8  grounds of self-incrimination. Any testimony or other information

 

 9  produced in the hearing and any information directly or

 

10  indirectly derived from the testimony or other information shall

 

11  not be used against the person in any criminal prosecution based

 

12  on a violation of this article except a prosecution for perjury

 

13  committed while testifying. Continued refusal to testify or

 

14  provide other information is grounds for the suspension or

 

15  revocation of a license or registration card issued under this

 

16  article.

 

17        Sec. 8507. The owner, operator, or agent of a

 

18  pharmaceutical-grade cannabis licensed facility who fails to

 

19  comply with this article within the time specified by the

 

20  department or who establishes or operates a pharmaceutical-grade

 

21  cannabis licensed facility in violation of this article, is

 

22  guilty of a misdemeanor punishable by imprisonment for not more

 

23  than 90 days or a fine of not more than $1,000.00, or both, for

 

24  each violation or noncompliance.

 

25        Sec. 8509. Except as otherwise provided in this article, a

 

26  pharmaceutical-grade cannabis licensed facility that has been

 

27  issued a license under this article, or any owner, operator,


 

 1  officer, director, partner, member, manager, or employee of the

 

 2  licensed facility, is not subject to arrest, prosecution, or

 

 3  penalty in any manner, or denied any right or privilege,

 

 4  including, but not limited to, civil penalty or disciplinary

 

 5  action by a business or occupational or professional licensing

 

 6  board or bureau, for the cultivation, distribution, and sale of

 

 7  pharmaceutical-grade cannabis under this article for use by

 

 8  qualifying patients in the manner prescribed in the Michigan

 

 9  medical marihuana act and by eligible patients in the manner

 

10  prescribed in this article.

 

11        Sec. 8511. Except as otherwise provided in this section, a

 

12  local governmental unit shall not enact or enforce an ordinance

 

13  regarding pharmaceutical-grade cannabis licensed facilities. A

 

14  local governmental unit may limit the number of pharmaceutical-

 

15  grade cannabis licensed facilities that may operate in the local

 

16  governmental unit and may enact reasonable zoning regulations

 

17  applicable to pharmaceutical-grade cannabis licensed facilities

 

18  based on local government zoning, health, and safety laws for the

 

19  cultivation, distribution, and sale of pharmaceutical-grade

 

20  cannabis.

 

21        Enacting section 1. Sections 7335 and 7336 of the public

 

22  health code, 1978 PA 368, MCL 333.7335 and 333.7336, are

 

23  repealed.