HOUSE BILL NO. 5302

September 14, 2021, Introduced by Reps. Steenland and Lilly and referred to the Committee on Regulatory Reform.

A bill to amend 2016 PA 282, entitled

"Marihuana tracking act,"

by amending sections 2 and 3 (MCL 333.27902 and 333.27903), section 2 as amended by 2021 PA 59.

the people of the state of michigan enact:

Sec. 2. As used in this act:

(a) "Department" means the department of licensing and regulatory affairs.

(b) "Financial institution" means that term as defined in section 201 of the medical marihuana facilities licensing act, MCL 333.27201.

(c) "Licensee" means that term as defined in section 102 of the medical marihuana facilities licensing act, MCL 333.27102.

(d) "Licensed specialty medical grower" means that term as defined in section 3 of the Michigan Medical Marihuana Act, MCL 333.26423.

(e) (d) "Marihuana" means that term as defined in section 3 of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27953.

(f) "Marijuana regulatory agency" means the marijuana regulatory agency created under Executive Reorganization Order No. 2019-2, MCL 333.27001.

(g) (e) "Medical marihuana facilities licensing act" means the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801.

(h) "Michigan Medical Marihuana Act" means the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430.

(i) (f) "Registered primary caregiver" means that term as defined in section 102 of the medical marihuana facilities licensing act, MCL 333.27102.3 of the Michigan Medical Marihuana Act, MCL 333.26423.

(j) (g) "Registered qualifying patient" means that term as defined in section 102 of the medical marihuana facilities licensing act, MCL 333.27102.3 of the Michigan Medical Marihuana Act, MCL 333.26423.

(k) (h) "Registry identification card" means that term as defined in section 3 of the Michigan medical marihuana act, 2008 IL 1, Medical Marihuana Act, MCL 333.26423.

(l) (i) "Statewide monitoring system" or "system" means an internet-based, statewide database established, implemented, and maintained directly or indirectly by the department marijuana regulatory agency 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, Medical Marihuana Act, MCL 333.26424.

Sec. 3. (1) The department marijuana regulatory agency 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, MCL 333.27207, 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; Medical Marihuana Act; 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, MCL 333.27207, allows all of the following:

(a) Verification that a registry identification card or specialty medical grower license 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, or licensed specialty medical grower.

(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.Medical Marihuana Act.

(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, MCL 333.27207.

(3) The department marijuana regulatory agency shall promulgate rules to govern the process for incorporating information concerning registry identification card and specialty medical grower license renewal, revocation, suspension, and changes and other information applicable to licensees, registered primary caregivers, and registered qualifying patients, and licensed specialty medical growers that must be included and maintained in the statewide monitoring system.

(4) The department marijuana regulatory agency shall seek bids to establish, operate, and maintain the statewide monitoring system under this section. The department marijuana regulatory agency 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; Medical Marihuana Act; 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; Medical Marihuana Act, 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, Medical Marihuana Act 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 marijuana regulatory agency 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.

Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 101st Legislature are enacted into law:

(a) Senate Bill No.____ or House Bill No.5301.

(b) Senate Bill No.____ or House Bill No.5300.

(c) Senate Bill No.____ or House Bill No. 5321 (request no. 04326'21).

(d) Senate Bill No.____ or House Bill No. 5319 (request no. 04327'21).