HB4827, As Passed House, September 14, 2016

HB4827, As Passed Senate, September 8, 2016

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 4827

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to establish a statewide monitoring system to track

 

marihuana and marihuana products in commercial trade; to monitor

 

compliance with laws authorizing commercial traffic in medical

 

marihuana; to identify threats to health from particular batches of

 

marihuana or medical marihuana; to require persons engaged in

 

commercial marihuana trade to submit certain information for entry

 

into the system; to provide the powers and duties of certain state

 

departments and agencies; to provide for remedies; and to provide

 

for the promulgation of rules.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

"marihuana tracking act".

 

     Sec. 2. As used in this act:

 

     (a) "Department" means the department of licensing and


regulatory affairs.

 

     (b) "Licensee" means that term as defined in section 102 of

 

the medical marihuana facilities licensing act.

 

     (c) "Marihuana" means that term as defined in section 7106 of

 

the public health code, 1978 PA 368, MCL 333.7106.

 

     (d) "Registered primary caregiver" means that term as defined

 

in section 102 of the medical marihuana facilities licensing act.

 

     (e) "Registered qualifying patient" means that term as defined

 

in section 102 of the medical marihuana facilities licensing act.

 

     (f) "Registry identification card" means that term as defined

 

in section 3 of the Michigan medical marihuana act, 2008 IL 1, MCL

 

333.26423.

 

     (g) "Statewide monitoring system" or "system" means an

 

Internet-based, statewide database established, implemented, and

 

maintained directly or indirectly by the department that is

 

available to licensees, law enforcement agencies, and authorized

 

state departments and agencies on a 24-hour basis for all of the

 

following:

 

     (i) Verifying registry identification cards.

 

     (ii) Tracking marihuana transfer and transportation by

 

licensees, including transferee, date, quantity, and price.

 

     (iii) Verifying in a commercially reasonable time that a

 

transfer will not exceed the limit that the registered qualifying

 

patient or registered primary caregiver is authorized to receive

 

under section 4 of the Michigan medical marihuana act, 2008 IL 1,

 

MCL 333.26424.

 

     Sec. 3. (1) The department shall establish a statewide

 


monitoring system for use as an integrated marihuana tracking,

 

inventory, and verification system. The system must allow for

 

interface with third-party inventory and tracking systems as

 

described in section 207 of the medical marihuana facilities

 

licensing act to provide for access by this state, licensees, and

 

law enforcement personnel, to the extent that they need and are

 

authorized to receive or submit the information, to comply with,

 

enforce, or administer this act; the Michigan medical marihuana

 

act, 2008 IL 1, MCL 333.26421 to 333.26430; or the medical

 

marihuana facilities licensing act.

 

     (2) At a minimum, the system must be capable of storing and

 

providing access to information that, in conjunction with 1 or more

 

third-party inventory control and tracking systems under section

 

207 of the medical marihuana facilities licensing act, allows all

 

of the following:

 

     (a) Verification that a registry identification card is

 

current and valid and has not been suspended, revoked, or denied.

 

     (b) Retention of a record of the date, time, quantity, and

 

price of each sale or transfer of marihuana to a registered

 

qualifying patient or registered primary caregiver.

 

     (c) Determination of whether a particular sale or transfer

 

transaction will exceed the permissible limit established under the

 

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

 

333.26430.

 

     (d) Effective monitoring of marihuana seed-to-sale transfers.

 

     (e) Receipt and integration of information from third-party

 

inventory control and tracking systems under section 207 of the

 


medical marihuana facilities licensing act.

 

     (3) The department shall promulgate rules to govern the

 

process for incorporating information concerning registry

 

identification card renewal, revocation, suspension, and changes

 

and other information applicable to licensees, registered primary

 

caregivers, and registered qualifying patients that must be

 

included and maintained in the statewide monitoring system.

 

     (4) The department shall seek bids to establish, operate, and

 

maintain the statewide monitoring system under this section. The

 

department shall do all of the following:

 

     (a) Evaluate bidders based on the cost of the service and the

 

ability to meet all of the requirements of this act; the Michigan

 

medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430; and

 

the medical marihuana facilities licensing act.

 

     (b) Give strong consideration to the bidder's ability to

 

prevent fraud, abuse, and other unlawful or prohibited activities

 

associated with the commercial trade in marihuana in this state,

 

and the ability to provide additional tools for the administration

 

and enforcement of this act; the Michigan medical marihuana act,

 

2008 IL 1, MCL 333.26421 to 333.26430; and the medical marihuana

 

facilities licensing act.

 

     (c) Institute procedures to ensure that the contract awardee

 

does not disclose or use the information in the system for any use

 

or purpose except for the enforcement, oversight, and

 

implementation of the Michigan medical marihuana act, 2008 IL 1,

 

MCL 333.26421 to 333.26430, or the medical marihuana facilities

 

licensing act.

 


     (d) Require the contract awardee to deliver the functioning

 

system by 180 days after award of the contract.

 

     (5) The department may terminate a contract with a contract

 

awardee under this act for a violation of this act. A contract

 

awardee may be debarred from award of other state contracts under

 

this act for a violation of this act.

 

     Sec. 4. The information in the system is confidential and is

 

exempt from disclosure under the freedom of information act, 1976

 

PA 442, MCL 15.231 to 15.246. Information in the system may be

 

disclosed for purposes of enforcing this act; the Michigan medical

 

marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430; and the

 

medical marihuana facilities licensing act.

 

     Enacting section 1. This act takes effect 90 days after the

 

date it is enacted into law.

 

     Enacting section 2. This act does not take effect unless House

 

Bill No. 4209 of the 98th Legislature is enacted into law.