August 18, 2015, Introduced by Rep. Kesto and referred to the Committee on Judiciary.


     A bill to establish a 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 trade to submit


certain information for entry into the system; to provide the


powers and duties of certain state departments and agencies; and to


provide for sanctions.




     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) "Marihuana" includes all of the following that are grown,


processed, or sold for medical use as described in the Michigan


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


the medical marihuana facilities licensing act:


     (i) All parts of the plant Cannabis sativa L.


     (ii) The seeds or seedlings of Cannabis sativa L.


     (iii) The resin extracted from any part of Cannabis sativa L.


     (iv) Every compound, manufacture, salt, derivative, mixture,


or preparation of Cannabis sativa L. or its seeds or resin.


     (c) "System" means the system for tracking marihuana


established under section 3.


     Sec. 3. (1) The department shall establish, maintain, and


utilize, directly or by contract, a system to track marihuana that


is grown, processed, transferred, stored, or disposed of under the


medical marihuana facilities licensing act.


     (2) The system shall have the functions and capabilities


described in section 4 and shall be operated in compliance with the


health insurance portability and accountability act of 1996, Public


Law 104-191.


     Sec. 4. (1) The system shall be hosted on a platform that


allows all of the following:


     (a) Dynamic allocation of resources.


     (b) Data redundancy.


     (c) Recovery from natural disaster within hours.


     (2) The system shall have all of the following capabilities:


     (a) Tracking all plants, products, packages, patient and


primary caregiver purchase totals, waste, transfers, conversions,


sales, and returns that, if practicable, are linked to unique


identification numbers.


     (b) Tracking lot and batch information throughout the entire


chain of custody.


     (c) Tracking all products, conversions, and derivatives


throughout the entire chain of custody.


     (d) Tracking plant, batch, and product destruction.


     (e) Tracking transportation of product.


     (f) Performing complete batch recall tracking that clearly


identifies all of the following details relating to the specific


batch subject to the recall:


     (i) Sold product.


     (ii) Product inventory that is finished and available for




     (iii) Product that is in the process of transfer.


     (iv) Product being processed into another form.


     (v) Postharvest raw product, such as product that is in the


drying, trimming, or curing process.


     (g) Reporting and tracking loss, theft, or diversion of


product containing marihuana.


     (h) Reporting and tracking all inventory discrepancies.


     (i) Reporting and tracking adverse patient responses or dose-


related efficacy issues.


     (j) Reporting and tracking all sales and refunds.


     (k) Tracking patient purchase limits and flagging purchases in


excess of authorized limits.


     (l) Receiving electronically submitted information required to


be reported under this act.


     (m) Receiving testing results electronically from a safety


compliance facility via a secured application program interface


into the system and directly linking the testing results to each


applicable source batch and sample.


     (n) Flagging test results that have characteristics indicating


that they may have been altered.


     (o) Providing information to cross-check that product sales


are made to a qualified patient or designated primary caregiver and


that the product received the required testing.


     (p) Providing the department, local law enforcement agencies,


and state agencies with real-time access to information in the




     (q) Providing real-time analytics to the department regarding


key performance indicators such as the following:


     (i) Total daily sales.


     (ii) Total plants in production.


     (iii) Total plants destroyed.


     (iv) Total inventory adjustments.


     Sec. 5. (1) A person who is a licensee under the medical


marihuana facilities licensing act shall supply the relevant


tracking or testing information in the form the department requires


regarding each plant, product, package, batch, test, transfer,


conversion, sale, recall, or disposition of marihuana in or from


the person's possession or control. A provisioning center shall


include information identifying the patient to or for whom the sale


is made and, if applicable, the primary caregiver to whom the sale


was made. The department may require that the information be


submitted electronically.


     (2) A person who willfully violates subsection (1) is


responsible for a state civil infraction and may be ordered to pay


a civil fine of not more than $1,000.00.


     (3) A person who commits a second or subsequent willful


violation of subsection (1) is guilty of a misdemeanor punishable


by imprisonment for not more than 93 days or a fine of not more


than $2,500.00, or both.


     Sec. 6. 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 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.