HB-4827, As Passed House, October 7, 2015

SUBSTITUTE FOR

HOUSE BILL NO. 4827

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.

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

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

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.

(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.

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

sale.

(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

database.

(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.