SENATE BILL No. 1349

 

 

October 17, 2012, Introduced by Senators KAHN, RICHARDVILLE and JONES and referred to the Committee on Government Operations.

 

 

 

      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 2012 PA 183 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

 


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

 

 2  specific chemical designation:

 

 

3

Acetylmethadol

Difenoxin

Noracymethadol

4

Allylprodine

Dimenoxadol

Norlevorphanol

5

Alpha-acetylmethadol

Dimepheptanol

Normethadone

6

Alphameprodine

Dimethylthiambutene

Norpipanone

7

Alphamethadol

Dioxaphetyl butyrate

Phenadoxone

8

Benzethidine

Dipipanone

Phenampromide

9

Betacetylmethadol

Ethylmethylthiambutene

Phenomorphan

10

Betameprodine

Etonitazene

Phenoperidine

11

Betamethadol

Etoxeridine

Piritramide

12

Betaprodine

Furethidine

Proheptazine

13

Clonitazene

Hydroxypethidine

Properidine

14

Dextromoramide

Ketobemidone

Propiram

15

Diampromide

Levomoramide

Racemoramide

16

Diethylthiambutene

Levophenacylmorphan

Trimeperidine

17

 

Morpheridine

 

 

 

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

 

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

 

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

 

21  possible within the specific chemical designation:

 

 

22

Acetorphine

Drotebanol

Morphine-N-Oxide

23

Acetyldihydrocodeine

Etorphine

Myrophine

24

Benzylmorphine

Heroin

Nicocodeine

25

Codeine methylbromide

Hydromorphinol

Nicomorphine

26

Codeine-N-Oxide

Methyldesorphine

Normorphine

27

Cyprenorphine

Methyldihydromorphine

Pholcodine

28

Desomorphine

Morphine methylbromide

Thebacon


1

Dihydromorphine

Morphine methylsulfonate

 

 

 

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

 

 3  contains any quantity of the following hallucinogenic substances,

 

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

 

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

 

 6  of isomers is possible within the specific chemical designation:

 

 

7

2-Methylamino-1-phenylpropan-1-one

8

      Some trade and other names:

9

      Methcathinone

10

      Cat

11

      Ephedrone

12

3, 4-methylenedioxy amphetamine

13

      5-methoxy-3, 4-methylenedioxy

14

      amphetamine

15

3, 4, 5-trimethoxy amphetamine

16

      Bufotenine

17

      Some trade and other names:

18

      3-(B-dimethylaminoethyl)-5 hydrozyindole

19

      3-(2-dimethylaminoethyl)-5 indolol

20

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

21

      Mappine

22

2, 5-Dimethoxyamphetamine

23

      Some trade or other names:

24

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

25

4-Bromo-2, 5-Dimethoxyamphetamine

26

      Some trade or other names:

27

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

28

      2,5-DMA


1

Diethyltryptamine

2

      Some trade and other names:

3

      N,N-Diethyltryptamine; DET

4

Dimethyltryptamine

5

      Some trade or other names:

6

      DMT

7

4-methyl-2, 5-dimethoxyamphetamine

8

      Some trade and other names:

9

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

10

      DOM, STP

11

4-methoxyamphetamine

12

      Some trade or other names:

13

      4-methoxy-a-methylphenethylamine; paramethoxy  amphetamine;

14

      PMA

15

Ibogaine

16

      Some trade and other names:

17

      7-Ethyl-6,6a,7,8,9,10,12,13

18

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

19

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

20

      tabernanthe iboga

21

Lysergic acid diethylamide

22

Marihuana Except as provided in subsection (2), marihuana

23

Mecloqualone

24

Mescaline

25

Peyote

26

N-ethyl-3 piperidyl benzilate

27

N-methyl-3 piperidyl benzilate

28

Psilocybin

29

Psilocyn

30

Thiophene analog of phencyclidine

31

      Some trade or other names:


1

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

2

      2-thienyl analog of phencyclidine; TPCP

 

 

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

 

 4  synthetic equivalents of the substances contained in the plant,

 

 5  or in the resinous extractives of cannabis and synthetic

 

 6  substances, derivatives, and their isomers with similar chemical

 

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

 

 8  following, are included in schedule 1:

 

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

 

10  isomers.

 

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

 

12  isomers.

 

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

 

14  optical isomers.

 

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

 

16  compounds of structures of substances referred to in subdivision

 

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

 

18  included.

 

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

 

20  isomer of gamma-hydroxybutyrate.

 

 

21

      Some trade and other names:

22

      Sodium oxybate

23

      4-hydroxybutanoic acid monosodium salt

 

 

24        (g) 3,4-methylenedioxymethamphetamine.

 

 


1

      Some trade and other names:

2

      Ecstasy

3

      MDMA

 

 

 4        (h) N-Benzylpiperazine

 

 

5

      Some trade and other names:

6

      BZP

7

      Benzylpiperazine

8

      1-(phenylmethyl)-piperazine

 

 

 9        (i) 3-Chlorophenylpiperazine

 

 

10

      Some trade and other names:

11

      MCPP

 

 

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

 

 

13

      Some trade and other names:

14

      TFMPP

 

 

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

 

 

16

      Some trade and other names:

17

      2C-B-BZP

 

 

18        (l) All of the following:

 

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

 

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

 

 

21

      Some trade and other names:


1

      HU-210

 

 

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

 

 3  yl)phenol and its side chain homologues.

 

 

4

      Some trade and other names:

5

      CP47,497

 

 

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

 

 

7

      Some trade and other names:

8

      JWH-018

 

 

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

 

 

10

      Some trade and other names:

11

      JWH-073

 

 

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

 

13  methanone.

 

 

14

      Some trade and other names:

15

      JWH-015

 

 

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

 

17  naphthalenyl-methanone.

 

 

18

      Some trade and other names:

19

      JWH-200

 

 

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

 


 1  ethanone.

 

 

2

      Some trade and other names:

3

      JWH-250

 

 

 4        (m) Mephedrone (4-methylmethcathinone).

 

 

5

      Some trade and other names:

6

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

7

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

 

 

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

 

 

9

      Some trade and other names:

10

      MPBP

 

 

11        (o) Methylenedioxypyrovalerone

 

 

12

      Some trade and other names:

13

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

14

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

15

lightning

 

 

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

 

 

17

      Some trade and other names:

18

      MDAI

19

      Woof-woof

 

 

20        (q) Naphyrone (Naphthylpyrovalerone)

 

 


1

      Some trade and other names:

2

      NRG-1

3

      Rave

 

 

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

 

 5  pentanone)

 

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

 

 7  section 7218, all parts of the plant presently classified

 

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

 

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

 

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

 

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

 

 

12

      Some trade and other names:

13

      Khat

14

      Qat

 

 

15        (t) Cathinone.

 

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

 

17  all parts of the plant presently classified botanically as salvia

 

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

 

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

 

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

 

21  or its leaves, seeds, or extracts.

 

22        (v) Salvinorin A.

 

23        (2) Marihuana and the substances described in subsection

 

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

 

25  manufactured, obtained, stored, dispensed, possessed, grown, or

 


 1  disposed of in compliance with article 8.

 

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

 

 3  the optical, position, and geometric isomers.

 

 4        Sec. 7214. The following controlled substances are included

 

 5  in schedule 2:

 

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

 

 7  drugs listed in other schedules, whether produced directly or

 

 8  indirectly by extraction from substances of vegetable origin, or

 

 9  independently by means of chemical synthesis, or by combination

 

10  of extraction and chemical synthesis:

 

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

 

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

 

13  and excluding naltrexone and its salts, but including the

 

14  following:

 

 

15

          Raw opium                    Etorphine hydrochloride

16

          Opium extracts               Hydrocodone

17

          Opium Fluid-extracts         Hydromorphone

18

          Powdered opium               Metopon

19

          Granulated opium             Morphine

20

          Tincture of opium            Oxycodone

21

          Codeine                      Oxymorphone

22

          Ethylmorphine                Thebaine

 

 

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

 

24  which is chemically equivalent to or identical with a substance

 

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

 

26  substances do not include the isoquinoline alkaloids of opium.

 

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


 

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

 

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

 

 3  opium poppy.

 

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

 

 5  preparation thereof which is chemically equivalent to or

 

 6  identical with any of these substances, except that the

 

 7  substances do not include decocainized coca leaves or extraction

 

 8  of coca leaves which extractions do not contain cocaine or

 

 9  ecgonine. The substances include cocaine, its salts,

 

10  stereoisomers, and salts of stereoisomers when the existence of

 

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

 

12  within the specific chemical designation.

 

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

 

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

 

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

 

16  the specific chemical designation:

 

 

17

          Alphaprodine                 Fentanyl

18

          Anileridine                  Isomethadone

19

          Bezitramide                  Levomethorphan

20

          Dihydrocodeine               Levorphanol

21

          Diphenoxylate                Metazocine

22

 

23

                           Methadone

24

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

25

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

26

1-diphenylpropane-carboxylic acid

27

 


1

                           Pethidine

2

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

3

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

4

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

5

carboxylic acid

6

 

7

          Phenazocine                  Racemethorphan

8

          Piminodine                   Racemorphan

 

 

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

 

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

 

11  the following substances having potential for abuse associated

 

12  with a stimulant effect on the nervous system:

 

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

 

14  optical isomers.

 

15        (ii) Any substance which contains any quantity of

 

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

 

17  stereoisomers.

 

18        (iii) Phenmetrazine and its salts.

 

19        (iv) Methylphenidate and its salts.

 

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

 

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

 

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

 

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

 

24  which contains any quantity of the following substances having a

 

25  potential for abuse associated with the depressant effect on the

 

26  central nervous system: methaqualone, amobarbital, pentobarbital,

 

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

 


 1  containing amobarbital, secobarbital, pentobarbital, or any salt

 

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

 

 3  more other controlled substances.

 

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

 

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

 

 6  IL 1, MCL 333.26421 to 333.26430.

 

 7                            ARTICLE 8

 

 8                  PHARMACEUTICAL-GRADE CANNABIS

 

 9                             PART 81

 

10                        GENERAL PROVISIONS

 

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

 

12  phrases defined in sections 8103 to 8107 have the meanings

 

13  ascribed to them in those sections.

 

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

 

15  principles of construction applicable to all articles in this

 

16  act.

 

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

 

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

 

19  and includes each individual identified in the application as an

 

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

 

21  of the applicant.

 

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

 

23  acid.

 

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

 

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

 

26  requirements of part 84 and has been issued an enhanced

 

27  pharmaceutical-grade cannabis registration card.

 


 1        (5) "Enhanced pharmaceutical-grade cannabis registration

 

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

 

 3  under part 84.

 

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

 

 5  section 1 of 1974 PA 381, MCL 338.41.

 

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

 

 7  section 7106 and includes pharmaceutical-grade cannabis.

 

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

 

 9  internal possession, delivery, transfer, or transportation of

 

10  pharmaceutical-grade cannabis or paraphernalia relating to the

 

11  administration of pharmaceutical-grade cannabis to treat or

 

12  alleviate an eligible patient's debilitating medical condition.

 

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

 

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

 

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

 

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

 

17  that is free of chemical residues such as fungicides and

 

18  insecticides and is tested by validated methods to determine its

 

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

 

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

 

21  tables 1, 2, and 3 of this subsection, for its microbial,

 

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

 

23  meets any other necessary requirements to be considered in

 

24  compliance with good manufacturing practices as prescribed in

 

25  rules promulgated by the department under this article.

 

 

26

                               TABLE 1


1

                           Microbiological

2

Microbiological Analysis             FPL Specifications

3

Total coliforms                      <3 MPN/g

4

Std. plate count aerobic             <100 CFU/g

5

Std. plate count anaerobic           <100 CFU/g

6

Escherichia coli                     Absent

7

Salmonella                           Absent

8

Staphylococcus aureus                <100 CFU/g

9

Yeast and molds                      <100 CFU/g

10

 

11

                               TABLE 2

12

                              Mycotoxins

13

Test                                 Specification

14

Aflatoxin B1                         <20 µg/kg of substance

15

Aflatoxin B2                         <20 µg/kg of substance

16

Aflatoxin O1                         <20 µg/kg of substance

17

Aflatoxin O2                         <20 µg/kg of substance

18

Ochratoxin A                         <20 µg/kg of substance

19

 

20

                               TABLE 3

21

                             Heavy Metals

22

Metal                                NHP Acceptable Limits

23

                                     µg/kg bw/day

24

Arsenic                              <0.14

25

Cadmium                              <0.09

26

Lead                                 <0.29

27

Mercury                              <0.29

 

 

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

 

29  pharmaceutical-grade cannabis fund created in section 8113.

 

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


 

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

 

 2  facility at or through which pharmaceutical-grade cannabis is

 

 3  manufactured, cultivated, and tested in this state for lawful

 

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

 

 5  medical marihuana act. Pharmaceutical-grade cannabis licensed

 

 6  facility does not include a qualifying patient or primary

 

 7  caregiver who possesses or cultivates marihuana in the manner

 

 8  prescribed in the Michigan medical marihuana act or an eligible

 

 9  patient who possesses pharmaceutical-grade cannabis in the manner

 

10  prescribed in this article.

 

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

 

12  has been issued a registry identification card as a primary

 

13  caregiver under the Michigan medical marihuana act.

 

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

 

15  issued a registry identification card as a qualifying patient

 

16  under the Michigan medical marihuana act.

 

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

 

18  tetrahydrocannabinol acid.

 

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

 

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

 

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

 

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

 

23  establish separate or additional administrative fees under this

 

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

 

25  renewal enhanced pharmaceutical-grade cannabis registration cards

 

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

 

27  utilize fees established in the rules promulgated under section 5


 

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

 

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

 

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

 

 4  pharmaceutical-grade cannabis fund.

 

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

 

 6  department shall develop and publish a comprehensive schedule of

 

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

 

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

 

 9  service. The department shall include a statement of the

 

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

 

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

 

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

 

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

 

14  under this article.

 

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

 

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

 

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

 

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

 

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

 

20  state treasurer shall credit to the fund interest and earnings

 

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

 

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

 

23  general fund.

 

24        (2) The department is the administrator of the

 

25  pharmaceutical-grade cannabis fund for auditing purposes and the

 

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

 

27  only for the direct and indirect costs associated with


 

 1  implementing, administering, and enforcing this article.

 

 2        Sec. 8115. The department shall promulgate rules necessary

 

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

 

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

 

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

 

 6  subjects:

 

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

 

 8  activities necessary for the compliance with or enforcement of or

 

 9  activities that constitute a violation of this article,

 

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

 

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

 

12  this article.

 

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

 

14  and contractors of the department.

 

15        (c) Instructions for local health departments and law

 

16  enforcement officers.

 

17        (d) All forms necessary or convenient for the

 

18  implementation, administration, and enforcement of this article.

 

19        (e) Activities that constitute or result in

 

20  misrepresentation or unfair, deceptive practices.

 

21        (f) Procedures to issue individual identification cards to

 

22  applicants and to employees of pharmaceutical-grade cannabis

 

23  licensed facilities based upon a fingerprint-based criminal

 

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

 

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

 

26  issuing the card.

 

27        (g) Specification of the minimum requirements for the


 

 1  cultivation, distribution, and sale of pharmaceutical-grade

 

 2  cannabis, including specifications on legitimate sources of seeds

 

 3  to cultivate pharmaceutical-grade cannabis.

 

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

 

 5  warehousing, distribution, and transportation of marihuana under

 

 6  this article.

 

 7        (i) Compliance with federal regulatory requirements.

 

 8        (j) Health and sanitary requirements for pharmaceutical-

 

 9  grade cannabis licensed facilities.

 

10        (k) Record keeping, record retention, record storage, and

 

11  record security requirements for pharmaceutical-grade cannabis

 

12  licensed facilities.

 

13        (l) Audit requirements for pharmaceutical-grade cannabis

 

14  licensed facilities, which shall include self reporting of

 

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

 

16  state and federal authorities.

 

17        (m) Physical security requirements for pharmaceutical-grade

 

18  cannabis that at a minimum include lighting and alarms.

 

19        (n) State licensing procedures, including renewals, and the

 

20  form and content of licensing applications and licenses.

 

21        (o) The reporting and transmittal of monthly sales and

 

22  income tax payments for pharmaceutical-grade cannabis licensed

 

23  facilities.

 

24        (p) Authorization for the department of treasury to have

 

25  access to licensing information to ensure sales and income tax

 

26  payments for pharmaceutical-grade cannabis licensed facilities.

 

27        (q) Activities that constitute lawful and unlawful financial


 

 1  arrangements between pharmaceutical-grade cannabis licensed

 

 2  facilities.

 

 3        (r) The size, dimensions, and acceptable colors for

 

 4  pharmaceutical-grade cannabis licensed facility signage.

 

 5        (s) The quantity of pharmaceutical-grade cannabis plants and

 

 6  dried plant material that a pharmaceutical-grade cannabis

 

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

 

 8        (t) Regulations regarding advertising, including

 

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

 

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

 

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

 

12  or smoking or drug paraphernalia.

 

13        (u) A process to revoke an enhanced pharmaceutical-grade

 

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

 

15  no longer an eligible patient under that part.

 

16        (v) Other matters necessary for the fair, impartial,

 

17  stringent, and comprehensive implementation, administration, and

 

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

 

19  welfare of the residents of this state.

 

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

 

21  grade cannabis licensed facility registry. The registry shall be

 

22  an online database that contains information regarding the

 

23  pharmaceutical-grade cannabis licensed facilities licensed under

 

24  part 82.

 

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

 

26  department shall submit to the legislature an annual report for

 

27  the previous calendar year that contains all of the following


 

 1  information:

 

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

 

 3        (b) The number of applications filed for enhanced

 

 4  pharmaceutical-grade cannabis registration cards under part 84.

 

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

 

 6  registration cards issued to eligible patients in each county.

 

 7  The department shall not include in the report any identifying

 

 8  information about eligible patients or physicians providing

 

 9  physician certifications under part 84.

 

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

 

11  eligible patients.

 

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

 

13  registration cards revoked under part 84.

 

14        (f) The number of physicians providing physician

 

15  certifications for eligible patients under part 84.

 

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

 

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

 

18  department under this article.

 

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

 

20  imposed by the department under this article.

 

21        (j) Any other information the department considers

 

22  appropriate under this article.

 

23                               PART 82

 

24                        FACILITY LICENSING

 

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

 

26  residents of this state, the department shall license facilities

 

27  under this article to cultivate, manufacture, and test


 

 1  pharmaceutical-grade cannabis in this state. The department shall

 

 2  implement, administer, and enforce this article to ensure that a

 

 3  safe, pure, dosage—consistent grade of pharmaceutical-grade

 

 4  cannabis is available to eligible patients and qualifying

 

 5  patients who are residents of this state.

 

 6        (2) This article does not apply to conduct while it is being

 

 7  engaged in under the Michigan medical marihuana act.

 

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

 

 9  grade cannabis facility in this state until issued a license

 

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

 

11  assignable or transferable to any other person.

 

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

 

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

 

14  submit an application, a detailed business plan, complete

 

15  drawings of its physical plant, and any other requested

 

16  information to the department for examination and approval. The

 

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

 

18  location of the pharmaceutical-grade cannabis licensed facility,

 

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

 

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

 

21  pharmaceutical-grade cannabis under this article. Specifications

 

22  and other information prescribed in rules promulgated under this

 

23  article shall accompany the drawings.

 

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

 

25  pharmaceutical-grade cannabis licensed facility are completed,

 

26  the owner or operator of the proposed pharmaceutical-grade

 

27  cannabis licensed facility shall notify the department. The


 

 1  department shall inspect the buildings and premises at which the

 

 2  pharmaceutical-grade cannabis licensed facility is contemplated.

 

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

 

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

 

 5  cannabis licensed facility license. The department shall issue a

 

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

 

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

 

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

 

 9  cannabis licensed facility unless the department is satisfied

 

10  that all of the following requirements are met:

 

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

 

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

 

13  compliance with this article.

 

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

 

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

 

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

 

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

 

18  repaying government-insured student loans; or paying child

 

19  support.

 

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

 

21  individual in the course of operating a licensed facility without

 

22  first conducting a criminal history check in the manner

 

23  prescribed in rules promulgated under this article.

 

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

 

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

 

26        (g) The criminal history check conducted under subsection

 

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


 

 1        (h) Any other criteria established in rules promulgated

 

 2  under this article.

 

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

 

 4  renewal of a pharmaceutical-grade cannabis licensed facility

 

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

 

 6  fingerprints and file personal history information concerning the

 

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

 

 8  department shall submit the fingerprints to the department of

 

 9  state police for the purpose of conducting fingerprint-based

 

10  criminal history checks. The department of state police shall

 

11  forward the fingerprints to the federal bureau of investigation

 

12  for the purpose of conducting fingerprint-based criminal history

 

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

 

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

 

15  based criminal history check under this part and whose

 

16  fingerprints are unclassifiable. An applicant who has previously

 

17  submitted fingerprints under this part may request that the

 

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

 

19  information resulting from the fingerprint-based criminal history

 

20  check to investigate and determine whether an applicant is

 

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

 

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

 

23  submit.

 

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

 

25  the administrative procedures act of 1969 before issuing a

 

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

 

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


 

 1  issued throughout the state is adequate for the reasonable needs

 

 2  of the eligible patients and qualifying patients in the community

 

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

 

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

 

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

 

 6  inspections for approval or renewal of pharmaceutical-grade

 

 7  cannabis licensed facility licenses to a local health department

 

 8  that has the technical and other capabilities to protect the

 

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

 

10  shall not take place unless the department has first consulted

 

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

 

12  department for the purpose of advising on that delegation.

 

13  Membership on the ad hoc committee shall include representatives

 

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

 

15  association that represents the pharmaceutical-grade cannabis

 

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

 

17  delegated under this section, the state shall reimburse each

 

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

 

19  reimbursement for the cost of inspection, on vouchers certified

 

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

 

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

 

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

 

23  operating a pharmaceutical-grade cannabis licensed facility

 

24  seeking relicensure shall apply for license renewal and shall pay

 

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

 

26  applicant for license renewal with the requirements of this

 

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


 

 1  shall issue a renewal license.

 

 2                             PART 83

 

 3    PHARMACEUTICAL-GRADE CANNABIS LICENSED FACILITY OPERATIONS

 

 4        Sec. 8301. A pharmaceutical-grade cannabis licensed facility

 

 5  shall establish legal control of its physical location. The

 

 6  physical location shall meet all applicable state and local

 

 7  zoning laws.

 

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

 

 9  facility shall notify the department in writing within 10 days

 

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

 

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

 

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

 

13  employee shall immediately surrender his or her identification

 

14  card to the department.

 

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

 

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

 

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

 

18  employee before the individual is associated with or begins

 

19  working at the licensed facility. The licensed facility shall

 

20  obtain the individual's identification and have a criminal

 

21  history check conducted to determine if that individual is

 

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

 

23  under this article.

 

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

 

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

 

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

 

27  purpose except for the medical use by eligible patients and


 

 1  qualifying patients as provided in this article.

 

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

 

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

 

 4  plants or dried pharmaceutical-grade cannabis allowed in its

 

 5  inventory as prescribed in rules promulgated under this article.

 

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

 

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

 

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

 

 9  cannabis. A licensed facility shall keep records of its

 

10  activities under this subsection in order to verify its

 

11  compliance to the department.

 

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

 

13  may be a profit or nonprofit entity.

 

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

 

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

 

16  following:

 

17        (a) Prohibit smoking or consumption of marihuana on its

 

18  premises.

 

19        (b) Maintain all records required under this article on its

 

20  premises.

 

21        (c) Allow unannounced inspection of its premises during

 

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

 

23  governmental agency authorized to inspect the licensed facility

 

24  under this article.

 

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

 

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

 

27  a product liability action against a pharmaceutical-grade


 

 1  cannabis licensed facility, pharmaceutical-grade cannabis is not

 

 2  defective or unreasonably dangerous, and the pharmaceutical-grade

 

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

 

 4  tested and determined to meet the standards for pharmaceutical-

 

 5  grade cannabis under this article.

 

 6                             PART 84

 

 7       ENHANCED PHARMACEUTICAL-GRADE CANNABIS REGISTRATION

 

 8        Sec. 8401. As used in this part:

 

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

 

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

 

11  333.26423, and includes debilitating medical conditions

 

12  established in rules promulgated under the Michigan medical

 

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

 

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

 

15  part 175.

 

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

 

17  physician regarding a patient that includes all of the following

 

18  information:

 

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

 

20  by the physician.

 

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

 

22  continuing care of the physician for that debilitating medical

 

23  condition.

 

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

 

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

 

26  professional opinion, the patient is likely to receive

 

27  therapeutic or palliative benefit from the use of pharmaceutical-


 

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

 

 2  medical condition or symptoms associated with the debilitating

 

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

 

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

 

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

 

 6  therapeutic or palliative benefit from the use of pharmaceutical-

 

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

 

 8  medical condition or symptoms associated with the debilitating

 

 9  medical condition.

 

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

 

11  patient's activities as described in section 8411.

 

12        Sec. 8403. Notwithstanding the Michigan medical marihuana

 

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

 

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

 

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

 

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

 

17  enhanced pharmaceutical-grade cannabis registration card under

 

18  this part is entitled to purchase pharmaceutical-grade cannabis

 

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

 

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

 

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

 

22  medical marihuana act, MCL 333.26424 and 333.26426.

 

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

 

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

 

25  333.26425, and the list of debilitating medical conditions

 

26  established under the Michigan medical marihuana act and those

 

27  rules, to administer the issuance of enhanced pharmaceutical-


 

 1  grade cannabis registration cards under this part.

 

 2        (2) The department may utilize rules promulgated under

 

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

 

 4  regarding the manner in which it will consider applications for

 

 5  and renewals of enhanced pharmaceutical-grade cannabis

 

 6  registration cards and to administer the issuance of enhanced

 

 7  pharmaceutical-grade cannabis registration cards under this part.

 

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

 

 9  pharmaceutical-grade cannabis registration card to an individual

 

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

 

11  all of the following:

 

12        (a) Submits all of the information and documentation

 

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

 

14  MCL 333.26426, to the department.

 

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

 

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

 

17  certification from 2 physicians.

 

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

 

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

 

20  physician and an acknowledgment that the enhanced pharmaceutical-

 

21  grade cannabis registration card will be revoked if the eligible

 

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

 

23  a physician.

 

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

 

25  department determines is necessary to administer the issuance of

 

26  enhanced pharmaceutical-grade cannabis registration cards under

 

27  this part.


 

 1        (2) The department shall provide for the automatic

 

 2  revocation of an enhanced pharmaceutical-grade cannabis

 

 3  registration card under this part unless the eligible patient

 

 4  submits a physician certification on or before the expiration of

 

 5  60 days after the date the first enhanced pharmaceutical-grade

 

 6  cannabis registration card is issued to that eligible patient

 

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

 

 8  period after that date.

 

 9        (3) An enhanced pharmaceutical-grade cannabis registration

 

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

 

11  notification from a physician who signed a physician

 

12  certification with regard to an eligible patient that states that

 

13  the patient has ceased to suffer from a debilitating medical

 

14  condition and the department notifies the individual who holds

 

15  the enhanced pharmaceutical-grade cannabis registration card of

 

16  that revocation.

 

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

 

18  list of the individuals to whom the department has issued

 

19  enhanced pharmaceutical-grade cannabis registration cards under

 

20  this part. Individual names and other identifying information on

 

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

 

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

 

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

 

24  whether an enhanced pharmaceutical-grade cannabis registration

 

25  card is valid, without disclosing more information than is

 

26  reasonably necessary to verify the authenticity of that an

 

27  enhanced pharmaceutical-grade cannabis registration card.


 

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

 

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

 

 3  who discloses confidential information in violation of this part

 

 4  is guilty of a misdemeanor punishable by imprisonment for not

 

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

 

 6  Notwithstanding this provision, department employees may notify

 

 7  law enforcement personnel about falsified or fraudulent

 

 8  information submitted to the department under this part.

 

 9        Sec. 8410. (1) A pharmaceutical-grade cannabis licensed

 

10  facility shall not sell or otherwise distribute pharmaceutical-

 

11  grade cannabis except as provided in this section.

 

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

 

13  not sell or otherwise distribute pharmaceutical-grade cannabis

 

14  directly to the public.

 

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

 

16  not sell or otherwise distribute pharmaceutical-grade cannabis to

 

17  the public through a person or any entity owned, operated, or

 

18  controlled by that pharmaceutical-grade cannabis licensed

 

19  facility, other than a person or entity described in subsection

 

20  (4) or (5).

 

21        (4) A pharmaceutical-grade cannabis licensed facility may

 

22  sell or otherwise distribute pharmaceutical-grade cannabis to a

 

23  practitioner or prescriber as those terms are defined in section

 

24  7109 for sale or distribution to the public only as provided in

 

25  this article.

 

26        (5) A pharmaceutical-grade cannabis licensed facility may

 

27  sell or otherwise distribute pharmaceutical-grade cannabis to


 

 1  other pharmaceutical-grade cannabis licensed facilities for

 

 2  purposes provided for under this article.

 

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

 

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

 

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

 

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

 

 7  grade cannabis as prescribed in this article under a valid

 

 8  enhanced pharmaceutical-grade cannabis registration card.

 

 9        (2) A physician may include in a statement that is a part of

 

10  his or her physician certification under this part any limitation

 

11  on that patient's activities while using pharmaceutical-grade

 

12  cannabis.

 

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

 

14  personnel action against an employee who is an eligible patient

 

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

 

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

 

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

 

18  use of pharmaceutical-grade cannabis.

 

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

 

20  to do any of the following:

 

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

 

22  cannabis if doing so would constitute negligence or professional

 

23  malpractice.

 

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

 

25        (i) In a school bus.

 

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

 

27  secondary school, preschool, or day care center.


 

 1        (iii) In any correctional facility.

 

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

 

 3  public transportation, in any public place where smoking is

 

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

 

 5  where smoking is prohibited under part 129.

 

 6        (d) Operate, navigate, or be in actual physical control of a

 

 7  motor vehicle, aircraft, or motorboat while using pharmaceutical-

 

 8  grade cannabis.

 

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

 

10  debilitating medical condition.

 

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

 

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

 

13  insurer, health maintenance organization, nonprofit health care

 

14  corporation, or other third party payer to reimburse an

 

15  individual for costs associated with the use of pharmaceutical-

 

16  grade cannabis.

 

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

 

18  employer to accommodate the consumption of pharmaceutical-grade

 

19  cannabis in any workplace.

 

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

 

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

 

22  while under the influence of pharmaceutical-grade cannabis.

 

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

 

24  a law enforcement official regarding any fact or circumstance

 

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

 

26  arrest or prosecution is responsible for a state civil infraction

 

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


 

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

 

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

 

 3  of marihuana.

 

 4                             PART 85

 

 5                           ENFORCEMENT

 

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

 

 7  shall conduct annual inspections of pharmaceutical-grade cannabis

 

 8  licensed facilities to ensure compliance with the requirements of

 

 9  this article.

 

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

 

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

 

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

 

13  hearing, reciting the existence of the emergency and providing

 

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

 

15  Notwithstanding this act or the administrative procedures act of

 

16  1969, the order shall be effective immediately. A person to whom

 

17  the order is directed shall comply immediately but, on

 

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

 

19  15 days. On the basis of the hearing, the emergency order shall

 

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

 

21  the hearing.

 

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

 

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

 

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

 

25  investigation and public hearing at which the pharmaceutical-

 

26  grade cannabis licensed facility licensee is afforded an

 

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


 

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

 

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

 

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

 

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

 

 5  department. The department may administer oaths and issue

 

 6  subpoenas to require the presence of persons and the production

 

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

 

 8  any hearing that the department is authorized to conduct.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

16  summarily suspend a license without notice pending any

 

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

 

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

 

19  temporary period of not more than 15 days.

 

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

 

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

 

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

 

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

 

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

 

25  an administrative fine in lieu of having the license suspended

 

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

 

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


 

 1  proposed suspension and cause any investigation to be made that

 

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

 

 3  the petition if the department determines that all of the

 

 4  following requirements are met:

 

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

 

 6  impaired by permitting the licensed facility to operate during

 

 7  the period set for suspension and the payment of the

 

 8  administrative fine will achieve the desired disciplinary

 

 9  purposes.

 

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

 

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

 

12  have suffered had the suspension gone into effect can be

 

13  determined with reasonable accuracy.

 

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

 

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

 

16  administrative fine, during the 2 years immediately preceding the

 

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

 

18  decision to suspend the license.

 

19        (4) The department shall establish the administrative fine

 

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

 

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

 

22  shall pay the administrative fine in lieu of suspension under

 

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

 

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

 

25  Upon payment of the administrative fine in lieu of suspension

 

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

 

27  order permanently staying the imposition of the suspension. Fines


 

 1  collected under this subsection shall be deposited in the

 

 2  pharmaceutical-grade cannabis fund.

 

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

 

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

 

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

 

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

 

 7  staying the imposition of the entire suspension or that portion

 

 8  of the suspension not otherwise conditionally stayed. If the

 

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

 

10  and does not order the suspension permanently stayed, the

 

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

 

12  by the department.

 

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

 

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

 

15  department, to testify or provide other information on the

 

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

 

17  produced in the hearing and any information directly or

 

18  indirectly derived from the testimony or other information shall

 

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

 

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

 

21  committed while testifying. Continued refusal to testify or

 

22  provide other information is grounds for the suspension or

 

23  revocation of a license or registration card issued under this

 

24  article.

 

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

 

26  pharmaceutical-grade cannabis licensed facility who knowingly

 

27  violates this article or who establishes or operates a


 

 1  pharmaceutical-grade cannabis licensed facility in violation of

 

 2  this article is guilty of a crime as follows:

 

 3        (a) Except as provided in subdivisions (b) and (c), the

 

 4  person is guilty of a misdemeanor punishable by imprisonment for

 

 5  not more than 90 days or a fine of not more than $10,000.00, or

 

 6  both.

 

 7        (b) Except as provided in subdivision (c), if the person has

 

 8  1 prior conviction for violating this article, the person is

 

 9  guilty of a misdemeanor punishable by imprisonment for not more

 

10  than 180 days or a fine of not more than $50,000.00, or both.

 

11        (c) If the person has 2 or more prior convictions for

 

12  violating this article, or intentionally violates this article,

 

13  the person is guilty of a misdemeanor punishable by imprisonment

 

14  for not more than 1 year or a fine of not more than $100,000.00,

 

15  or both.

 

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

 

17  pharmaceutical-grade cannabis licensed facility that has been

 

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

 

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

 

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

 

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

 

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

 

23  action by a business or occupational or professional licensing

 

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

 

25  pharmaceutical-grade cannabis under this article for use by

 

26  qualifying patients in the manner prescribed in the Michigan

 

27  medical marihuana act and by eligible patients in the manner


 

 1  prescribed in this article.

 

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

 

 3  local governmental unit shall not enact or enforce an ordinance

 

 4  regarding pharmaceutical-grade cannabis licensed facilities. A

 

 5  local governmental unit may limit the number of pharmaceutical-

 

 6  grade cannabis licensed facilities that may operate in the local

 

 7  governmental unit and may enact reasonable zoning regulations

 

 8  applicable to pharmaceutical-grade cannabis licensed facilities

 

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

 

10  cultivation, distribution, and sale of pharmaceutical-grade

 

11  cannabis.

 

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

 

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

 

14  repealed.