HB-4827, 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.