SENATE BILL No. 142

February 18, 2015, Introduced by Senators KNEZEK, SHIRKEY, HUNE, HERTEL, GREGORY, ANANICH and KOWALL and referred to the Committee on Judiciary.

A bill to license and regulate medical marihuana provisioning

centers and safety compliance facilities; to provide for the powers

and duties of certain state and local governmental officers and

entities; to provide immunity for persons engaging in medical

marihuana-related activities in compliance with this act; to

prescribe penalties and sanctions and provide remedies; to create

an advisory panel; and to require 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

"medical marihuana provisioning center regulation act".

Sec. 2. As used in this act:

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

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

333.26423.

(b) "Department" means the department of licensing and

regulatory affairs.

drugs. Excluded felony offense does not include a conviction for

activity allowed under the Michigan medical marihuana act or this

act, even if the activity occurred before the enactment of this act

or the Michigan medical marihuana act.

(d) "Marihuana" means that term as defined in section 3 of the

Michigan medical marihuana act, MCL 333.26423.

(e) "Marihuana-infused product" means a topical formulation,

tincture, beverage, edible substance, or similar product containing

any usable marihuana that is intended for human consumption in a

manner other than smoke inhalation. Marihuana-infused product is

not considered a food for purposes of the food law, 2000 PA 92, MCL

289.1101 to 289.8111.

(f) "Medical marihuana" means marihuana for medical use as

that term is defined in section 3 of the Michigan medical marihuana

act, MCL 333.26423.

(g) "Medical marihuana provisioning center" or "provisioning

center" means a commercial entity located in this state that

acquires, possesses, manufactures, delivers, transfers, or

transports medical marihuana and sells, supplies, or provides

medical marihuana to registered qualifying patients, directly or

through the patients' registered primary caregivers. Provisioning

center includes any commercial property where medical marihuana is

sold to registered qualifying patients or registered primary

caregivers. A noncommercial location used by a primary caregiver to

assist a qualifying patient connected to the caregiver through the

department's medical marihuana registration process in accordance

with the Michigan medical marihuana act is not a provisioning

center for purposes of this act.

(h) "Michigan medical marihuana act" means the Michigan

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

(i) "Municipality" means a city, township, or village.

(j) "Paraphernalia" means drug paraphernalia as defined in

section 7451 of the public health code, 1978 PA 368, MCL 333.7451,

that is or may be used in association with medical marihuana.

(k) "Provisioning center agent" means a principal officer,

board member, employee, or operator of a provisioning center, or

any other individual acting as an agent of a provisioning center.

(l) "Registered primary caregiver" means a person who has a

valid, unexpired registry identification card as a primary

caregiver or who satisfies the criteria listed in section 9(b) or

possesses the documentation that constitutes a valid registry

identification card under that section.

(m) "Registered qualifying patient" means a person who meets

any of the following requirements:

(i) Has a valid, unexpired registry identification card as a

qualifying patient.

(ii) Satisfies the criteria listed in section 9(b) or (c) of

the Michigan medical marihuana act, MCL 333.26429, and possesses

the documentation that constitutes a valid registry identification

card under that section.

(n) "Registry identification card" means that term as defined

in section 3 of the Michigan medical marihuana act, MCL 333.26423.

(o) "Safety compliance facility" means an entity that tests

for contaminants in marihuana produced for medical use.

(p) "Safety compliance facility agent" means a principal

officer, board member, employee, operator of a safety compliance

facility, or any other individual acting as an agent of a safety

compliance facility.

(q) "State operating license" means a license to operate as a

provisioning center or safety compliance facility that is issued by

the department after approving an application that includes an

affirmative recommendation by the municipality in which the

provisioning center or safety compliance facility is located.

(r) "Usable marihuana" means the dried leaves, flowers, plant

resin, or extract of the marihuana plant and any mixture or

preparation thereof, but does not include the seeds, stalks, or

roots of the plant or any inactive substance used as a delivery

medium for usable marihuana.

(s) "Visiting qualifying patient" means a patient who is not a

resident of this state or who has been a resident of this state for

less than 30 days and who possesses a registry identification card,

or its equivalent, that was issued under the laws of another state,

district, territory, commonwealth, or insular possession of the

United States and that allows the use of medical marihuana by the

patient.

Sec. 3. (1) Except as otherwise provided in this act, if a

provisioning center has been granted a state operating license and

is operating in compliance with this act, rules implementing this

act, and any municipal ordinance described in section 5(1), the

provisioning center and the provisioning center agents are not

subject to any of the following for engaging in activities

described in subsection (2):

(a) Criminal penalties under state law or other local

ordinances.

(b) State or local civil prosecution.

by state police, the municipality, or the department.

(d) Seizure.

(e) Any sanction, including disciplinary action or denial of a

right or privilege, by a business or occupational or professional

licensing board or bureau.

(2) Activities that are exempt under subsection (1) include

all of the following:

(a) Purchasing, receiving, selling, or transferring marihuana

from or to registered qualifying patients, registered primary

caregivers, or provisioning centers.

(b) Purchasing or receiving medical marihuana from 1 or more

other provisioning centers.

registered qualifying patient or a registered primary caregiver if

the amount purchased does not exceed the registered qualifying

patient's or registered primary caregiver's medical marihuana

possession limits under the Michigan medical marihuana act.

(d) Processing medical marihuana.

(e) Possessing or manufacturing paraphernalia.

(f) Possessing medical marihuana processed by the provisioning

center or obtained pursuant to subdivision (a) or (b) on the

provisioning center premises or while the medical marihuana is

being transported pursuant to this section.

(g) Manufacturing nonsmokable forms of medical marihuana.

(h) Transporting medical marihuana between the provisioning

center and another provisioning center or a safety compliance

facility.

(i) Transporting or delivering medical marihuana or

paraphernalia to the residence of a registered qualifying patient

or a registered primary caregiver.

(j) Supplying, selling, providing, transferring, or delivering

medical marihuana, paraphernalia, or related supplies and

educational materials in compliance with the procedures and

limitations detailed in section 7(11) to (13) and the testing and

labeling requirements in section 7(4).

Sec. 4. (1) Except as otherwise provided in this act, if a

safety compliance facility has been granted a state operating

license and is operating in compliance with this act, rules

promulgated under this act, and any municipal ordinance described

in section 5(1), the safety compliance facility and the safety

compliance facility agents are not subject to any of the following

for engaging in activities described in subsection (2):

(a) Criminal penalties under state law or other local

ordinances.

(b) State or local civil prosecution.

by state police, the municipality, or the department.

(d) Seizure.

(e) Any sanction, including disciplinary action or denial of a

right or privilege, by a business or occupational or professional

licensing board or bureau.

(2) Activities that are exempt from regulation and sanction

under subsection (1) include all of the following:

(a) Acquiring or possessing medical marihuana obtained from

registered qualifying patients, registered primary caregivers, or

provisioning centers.

(b) Transporting medical marihuana to or from a registered

qualifying patient, registered primary caregiver, or provisioning

center.

facility's premises for testing, if the medical marihuana was

obtained pursuant to subdivision (a).

(d) Receiving compensation for actions permitted pursuant to

this section and municipal law.

Sec. 5. A municipality may enact and enforce an ordinance to

impose additional local requirements on provisioning centers or

safety compliance facilities, including, but not limited to, zoning

restrictions and caps on the number of provisioning centers in the

municipality. The municipality may adopt an ordinance under this

subsection, designate a violation of the ordinance as a municipal

civil infraction, and provide a civil fine for the violation. A

municipality may charge a fee for a provisioning center or safety

compliance facility.

Sec. 6. This act does not limit the medical purpose defense

provided in section 8 of the Michigan medical marihuana act, 2008

IL 1, MCL 333.26428, to any prosecution involving marihuana.

Sec. 7. (1) A provisioning center or a safety compliance

facility shall not be located within 1,000 feet, measured from

property line to property line, of the property line of a

preexisting primary or secondary school.

(2) A provisioning center shall not share office space with a

physician and shall not conduct any other business at or in

association with the provisioning center.

(3) The premises of a provisioning center shall have a

security alarm system that is enabled when a provisioning center

agent is not present.

(4) A provisioning center shall not sell, transfer, or

provide a marihuana-infused product unless it has been tested by

a safety compliance facility and is enclosed in a container that

bears a securely affixed label displaying all of the following

information:

(a) The name of the registered qualifying patient or

visiting qualifying patient for whom the marihuana-infused

product is intended.

(b) Certification that the product has been tested by a

licensed safety compliance facility as required in section 10

and does not contain unsafe levels of mold, mildew, fungi, or

pesticides.

weight of the usable marihuana in the container. The weight of

usable marihuana in the container shall be calculated as the same

fraction of the total weight of the usable marihuana that was used

in preparing the product as the fraction that the marihuana-infused

product in the container is of the total amount of marihuana-

infused product made from the usable marihuana. If the provisioning

center does not prepare the marihuana-infused product, it shall

obtain documentation from the preparer with the information

necessary to determine the usable marihuana content.

(d) The words "WARNING: This product contains marihuana. For a

registered qualifying patient's medical use only." or substantially

similar text.

(5) A provisioning center shall not operate unless each

licensee and provisioning center agent is a resident of this state

and has been a resident for the preceding 2 years.

(6) A provisioning center or safety compliance facility shall

not knowingly employ an individual who has been convicted of an

excluded felony offense during the immediately preceding 10-year

period or who is under 21 years of age or who is not either a

citizen of the United States or authorized to work under the United

States immigration and naturalization law. A provisioning center or

safety compliance facility shall perform a background check on an

individual before he or she is offered employment to verify that he

or she has not been convicted of an excluded felony offense during

the immediately preceding 10-year period.

(7) A provisioning center shall maintain records listing each

individual employed by the provisioning center, including the

beginning employment date and the date a background check was

performed.

(8) A provisioning center shall not allow on-site consumption

of medical marihuana, except that a provisioning center agent or

employee who is a registered qualifying patient may be permitted to

use a medical marihuana-infused topical product.

(9) A provisioning center shall not provide usable marihuana

or marihuana�infused products in solid form, gaseous form, or

liquid form to an individual if the total amount provided to the

individual in any 10-day period by provisioning centers would

exceed the amount for which the individual is granted immunity for

possession under the Michigan medical marihuana act.

(10) A provisioning center shall ensure compliance with the

limit under subsection (9) by maintaining internal, confidential

records that shall be entered into a statewide database when that

database becomes operational and shall specify the amount of

medical marihuana provided to each registered qualifying patient

and registered primary caregiver and whether it was provided to the

registered primary caregiver or directly to the registered

qualifying patient. Each record shall include the date and time the

medical marihuana was provided. A provisioning center shall

maintain each record for 6 months. For any registered qualifying

patient or registered qualifying caregiver in possession of a

registry identification card, a record shall be kept using the

patient's or caregiver's registry identification card number

instead of the patient's or caregiver's name. Confidential records

entered into the statewide database under this act are subject to

reasonable inspection by a department employee authorized to

inspect provisioning centers to ensure compliance with this act,

but may be stored off-site. Confidential records entered into the

statewide database under this act are exempt from disclosure under

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

Except as otherwise required by a court order, a provisioning

center and the department shall not disclose confidential records

to any person other than a department employee performing an

inspection in compliance with this subsection or to a provisioning

center agent. A provisioning center shall also maintain records of

the transfers of marihuana and marihuana-infused product that it

makes to or receives from another provisioning center, including

the dates and amounts, and identifying the provisioning centers.

The record of a provisioning center to provisioning center transfer

shall be maintained and entered into the statewide database in the

same manner as other records under this subsection. Except as

otherwise indicated in this subsection, all provisioning center

records shall be made available to the department upon request,

including both paper and electronically stored records.

(11) A provisioning center agent shall not provide, transfer,

or sell medical marihuana to an individual knowing that the

individual is not a registered qualifying patient, registered

primary caregiver, or provisioning center agent working on behalf

of a provisioning center that is not prohibited from operating or

obtaining medical marihuana from other provisioning centers under a

municipal ordinance.

(12) Before a provisioning center provides or sells an

individual medical marihuana, in addition to complying with

subsection (13), a provisioning center agent shall do 1 of the

following:

(a) Verify that the individual requesting medical marihuana

holds what the provisioning center agent reasonably believes to be

a valid, unexpired registry identification card.

(b) If the individual requesting medical marihuana indicates

that he or she is a provisioning center agent, make a diligent,

good-faith effort to verify that the individual is a provisioning

center agent for a provisioning center that holds a state operating

license.

(13) Before medical marihuana is provided or sold from a

provisioning center, a provisioning center agent shall make a

diligent, good-faith effort to determine that the individual named

in the registry identification card or other documentation

submitted under subsection (12) is the individual seeking to obtain

medical marihuana, by examining what the provisioning center agent

reasonably believes to be a valid government-issued photo

identification.

(14) An individual who is under 21 years of age or who has

been convicted of an excluded felony offense during the immediately

preceding 10-year period shall not serve as a provisioning center

agent or safety compliance facility agent.

(15) A provisioning center agent shall not, for compensation,

refer an individual to a physician.

(16) A provisioning center or safety compliance facility shall

not permit a physician to advertise in a provisioning center or

safety compliance facility or to hold any financial interest in or

receive any compensation from the provisioning center or safety

compliance facility.

(17) A provisioning center agent or safety compliance facility

agent shall not transport or possess medical marihuana on behalf of

the provisioning center or safety compliance facility in or upon a

motor vehicle or any self-propelled vehicle designed for land

travel unless all of the following conditions are met:

(a) The agent possesses a document signed and dated by a

manager or operator of the provisioning center or safety compliance

facility that employs the agent, stating the agent's name, the date

the medical marihuana is transported, the approximate amount of

medical marihuana transported, and the name of the provisioning

center or safety compliance facility from which the medical

marihuana is transported.

(b) The medical marihuana is located in 1 or more of the

following:

(i) An enclosed locked container, such as a safe or briefcase.

(ii) The trunk of the vehicle.

(iii) A space that is inaccessible from the passenger

compartment of the vehicle.

Sec. 8. (1) Except as otherwise provided in this act, a

registered qualifying patient, or registered primary caregiver who

supplies, sells, transfers, or delivers marihuana to a provisioning

center that has a state operating license and operates in

compliance with this act is not subject to any of the following for

engaging in that activity:

(a) Criminal penalties under state law or local ordinances.

(b) State or local civil prosecution.

by state police or the municipality.

(d) Seizure.

(e) Any sanction, including disciplinary action or denial of a

right or privilege, by a business or occupational or professional

licensing board or bureau.

(2) Except as otherwise provided in this act, a registered

qualifying patient is not subject to any of the inspections or

sanctions listed in subsection (1)(a) to (e) for any of the

following:

(a) Purchasing or acquiring usable marihuana or marihuana-

infused products in solid form, gaseous form, or liquid form from 1

or more provisioning centers if the amount purchased or acquired in

any 10-day period is not more than the amount for which the

individual is granted immunity for possession under the Michigan

medical marihuana act.

(b) Supplying, selling, transferring, or delivering medical

marihuana to a provisioning center that has a state operating

license if all of the following requirements are met:

(i) The medical marihuana was produced by the registered

qualifying patient or registered primary caregiver.

(ii) The amount of medical marihuana transferred does not

exceed the amount of medical marihuana the registered qualifying

patient is allowed to possess under the Michigan medical marihuana

act.

(3) Except as otherwise provided in this act, a registered

primary caregiver is not subject to any of the inspections or

sanctions listed in subsection (1)(a) to (e) for any of the

following:

(a) Purchasing or acquiring usable marihuana or marihuana-

infused products in solid form, gaseous form, or liquid form from 1

or more provisioning centers if the amount purchased or acquired in

any 10-day period is not more than the amount for which the

individual is granted immunity for possession under the Michigan

medical marihuana act.

(b) Supplying, selling, transferring, or delivering medical

marihuana to a provisioning center that is registered, licensed, or

otherwise allowed by the municipality in which it operates if all

of the following requirements are met:

(i) The medical marihuana was produced by the registered

primary caregiver and is excess medical marihuana above the amount

necessary to satisfy the needs of the registered qualifying

patients the primary caregiver is designated to serve.

(ii) The amount of medical marihuana transferred does not

exceed the amount of medical marihuana the registered primary

caregiver is allowed to possess under the Michigan medical

marihuana act.

Sec. 9. (1) The department shall not issue a state operating

license to an entity as a safety compliance facility and a safety

compliance facility shall not operate unless it is able to

accurately determine whether any of the following are present in

marihuana-infused products that are sold or may be sold at medical

marihuana provisioning centers in this state:

(a) Mold, mildew, or fungi.

(b) Pesticides.

(2) A safety compliance center is not exempt under section 4

for activities associated with handing, testing, or analyzing

marihuana unless it meets all of the following conditions:

(a) After October 1, 2015, the entity is licensed as a safety

compliance facility by this state.

(b) A person with a direct or indirect interest in the entity

does not have a direct or indirect financial interest in a

provisioning center, marihuana producer, certifying physician, or

any other entity that may financially benefit from the production,

manufacture, dispensing, sale, purchase, or use of marihuana.

bachelor's degree or higher in the chemical or biological sciences

and has a minimum of 1 year of postgraduate laboratory experience

to oversee and be responsible for laboratory testing.

(d) The entity is accredited by a private laboratory

accreditation service.

Sec. 10. (1) Beginning October 1, 2015, a provisioning center

shall not distribute or sell any marihuana-infused product unless

the product has been tested for mold, mildew, fungi, and pesticides

by a licensed safety compliance facility and does not contain

unsafe levels of mold, mildew, fungi, or pesticides. A provisioning

center shall make the safety compliance facility test results

available upon request to a qualifying patient, a primary

caregiver, the municipality in which the provisioning center is

located, or a physician who has certified a qualifying patient.

(2) If a medical marihuana provisioning center elects to

manufacture and distribute a marihuana-infused product, the medical

marihuana provisioning center must comply with all of the

following:

(a) Keep the grounds of the provisioning center under the

control of the operator free from improperly stored equipment,

litter, waste, refuse, and uncut weeds or grass and ensure that

floors, walls, ceilings, and equipment are kept clean and in good

repair.

(b) Keep food preparation areas separated from poisons,

undesirable microorganisms, chemicals, filth, or other extraneous

material by partition, location, or other effective means.

Marihuana is not prohibited in food preparation areas under this

subdivision.

ingredients are examined, processed, or stored, and in hand washing

areas, toilet rooms, and places where equipment or utensils are

cleaned.

(d) Provide adequate ventilation or control equipment to

minimize odors and noxious fumes, dust, or vapors, including steam,

in areas where they may contaminate food.

(e) Ensure that all provisioning center equipment and utensils

are suitable for their intended use and are designed and

constructed with material and workmanship that allows them to be

cleanable and properly maintained.

(f) Ensure that the provisioning center is properly equipped

with adequate sanitary facilities and accommodations.

(g) Ensure that the provisioning center has a water supply

that is sufficient for the operations intended and is derived from

an approved source.

(h) Ensure that all sewage and liquid waste is disposed of in

a public or municipal sewerage system, or, if an adequate public

disposal system is not available, in an approved septic tank system

or by another acceptable method that does not create a nuisance,

insanitary condition, or public health hazard.

(i) Provide employees with adequate, completely enclosed

toilet rooms and conveniently located associated hand washing

facilities that are maintained in a sanitary condition and kept in

good repair at all times.

(j) Provide adequate and convenient facilities for hand

washing that are furnished with hot and cold or tempered running

water, effective hand cleaning and sanitizing preparations,

disposable sanitary towel service or suitable drying devices, and

easily cleanable waste receptacles.

(k) Provide for conveying, storing, and disposal of rubbish

and offal in a manner that minimizes odor, prevents waste from

becoming an attractant or a harbor or breeding place for vermin,

and prevents contamination of food, food contact surfaces, ground

surfaces, and water supplies.

(l) Maintain the building, fixtures, and other physical

facilities of the provisioning center in good repair and in

sanitary condition.

(m) Prohibit live birds or other animals in the provisioning

center, except that a guide dog accompanying a blind person is

permitted in selling areas.

(n) Clean all utensils and product contact surfaces of

equipment as frequently as necessary to prevent contamination of

food and food products and all nonproduct contact surfaces of

equipment used in food preparation areas as frequently as necessary

to minimize accumulation of dust, dirt, food particles, and other

debris.

(o) Conduct all operations in receiving, inspecting,

transporting, packaging, segregating, preparing, processing, and

food storing areas in accordance with good sanitation principles

and take all reasonable precautions to ensure that production

procedures do not contribute contamination, such as filth, harmful

chemicals, undesirable microorganisms, or any other objectionable

material, to the processed product.

(p) Conduct all food processing, packaging, storage, and

transporting of food under conditions and controls that minimize

the potential for undesirable bacterial or other microbiological

growth, toxin formation, or deterioration or contamination of the

processed product, product ingredients, or product containers.

(q) Ensure that all food and drink is clean and wholesome, and

manufactured, handled, stored, prepared, transported, offered for

sale, and sold in a manner that keeps it safe for human

consumption.

(r) Not allow an individual who is affected by a disease in a

communicable form, a carrier of such a disease, or afflicted with

boils, sores, infected wounds, or other abnormal sources of

microbiological contamination to work in the provisioning center in

any capacity in which there is a reasonable possibility that food

or food ingredients will become contaminated or that the disease

will be transmitted to other individuals.

(s) Require all individuals working in direct contact with

food preparation, food ingredients, or surfaces coming into contact

with food ingredients to do all of the following:

(i) Wear clean outer garments, maintain a high degree of

personal cleanliness, and conform to hygienic practices while on

duty to the extent necessary to prevent contamination of food

products.

(ii) Before starting work, after each absence from the work

station, and at any other time when hands may have become soiled or

contaminated, wash their hands thoroughly in an adequate hand

washing facility and sanitize their hands if necessary to prevent

contamination.

(iii) Remove any jewelry that cannot be adequately sanitized and

all insecure jewelry from hands when food is manipulated by hand.

(iv) Maintain any gloves used in food handling in an intact,

clean, and sanitary condition and use only gloves made of an

impermeable material, except when that usage would be inappropriate

or incompatible with the work involved.

(v) Wear effective hairnets, headbands, or caps to constrain

the hair properly.

(vi) Refrain from storing clothing or other personal belongings

and from eating, drinking, or using tobacco in any form in areas

where food or food ingredients are exposed, or in areas used for

washing equipment or utensils.

(vii) Take any other necessary precautions to prevent

contamination of foods with microorganisms or other foreign

substances, including, but not limited to, perspiration, hair,

cosmetics, tobacco, chemicals, and medicants.

(3) Subsection (2) does not prohibit a municipality from

imposing additional regulations on medical marihuana provisioning

centers that manufacture and distribute a marihuana-infused

product.

(4) The local county health department shall inspect a

provisioning center at least annually for compliance with

subsections (2) and (3). The provisioning center shall pay for all

costs associated with the inspection under this subsection.

Sec. 11. (1) Beginning July 1, 2015, a person may submit an

application to the department for a license to operate as a

provisioning center or safety compliance facility. The department

may issue a state operating license as provided in this act upon

receipt and examination of an application that includes an

affirmative recommendation by the municipality in which the

provisioning center or safety compliance facility will be located.

The department may require that the application be on a form

designated by the department and accompanied by a registration fee

established by rule and that the applicant submit his or her own

criminal background check.

(2) The department may issue a state operating license if, in

the department's discretion, issuing the license is in the best

interests of the state. In making the determination, the department

shall consider all of the following:

(a) The applicant's character, including any history of

criminal or civil violations of law.

(b) Information concerning business skills and experience

related to the potential for success in operating the provisioning

center or safety compliance facility.

stability of and resources available to the applicant to conduct

business authorized by the state operating license in compliance

with this act.

(3) The department shall not grant a state operating license

unless the applicant is over 21 years of age, has been a resident

of this state for the preceding 2 years, and is a United States

citizen or is authorized to work in the United States in conformity

with United States immigration law.

(4) Unless the department notifies the applicant within 30

days after receipt that the application is incomplete, describing

the deficiency and requesting the additional information, the

department shall approve or deny an application within 90 days

after receiving a completed application. The 90-day period is

tolled for the following periods under the following circumstances:

(a) If the commission sends notice of a deficiency in the

application, until the date all of the requested information is

received.

(b) For the time required to complete actions required by a

person other than the applicant or the commission, including, but

not limited to, completion of construction or renovation of the

licensed premises, criminal history check, financial or court

record checks, or other actions required by this act or rule.

(5) If the department denies an application, it shall give the

reasons for the denial. The applicant has no right to appeal the

denial and may not submit another application for 1 year after the

date of the denial.

(6) A state operating license expires on January 1 of the year

following the year it is issued. If the licensee submits an

application for renewal of a state operating license between 30 to

45 days before the license expires, the license is renewed, unless

the department denies the application for renewal because of a

change in circumstances that indicates that the licensee no longer

meets the requirements for licensure. The department may require

that the application for renewal be on a form designated by the

department.

(7) A transfer of a state operating license is not valid

unless the licensee requests and receives approval by the

department and the municipality in which the provisioning center or

safety compliance facility is located. The department shall treat

an application for a transfer as if it were a new application for

license by the transferee.

(8) The department may promulgate rules to implement the

licensing, renewal, and transfer approval process.

Sec. 12. (1) The department, upon due notice and proper

hearing, may suspend or revoke any state operating license for a

violation of this act or the rules promulgated under this act or

for violation of an applicable local ordinance. The department

may assess an administrative fine against a provisioning center

of not more than $2,000.00 for each sale in violation of this act

or a rule promulgated under this act and not more than $1,000.00

for any other violation of this act or a rule promulgated under

this act. The department may assess an administrative fine

against a safety compliance center of not more than $10,000.00

for knowingly providing false or fraudulent test results for

mold, mildew, fungi, or pesticides. An administrative fine shall

be in lieu of or in addition to revocation of the license. A

provisioning center or safety compliance center shall pay an

administrative fine to the department, which shall deposit that

fine with the state treasurer in the state general fund.

(2) The department may promulgate rules to implement the

process of revocation or suspension of a state operating

license, assessing administrative fines, and conducting appeals

as necessary to provide for due process.

Sec. 13. (1) A provisioning center that violates section 7(1)

or (2) is responsible for a state civil infraction and may be

ordered to pay a civil fine of not more than $5,000.00. A

municipality in which the provisioning center or safety compliance

facility operates in violation of section 7(1) or (2) may petition

the court for an injunction to close the provisioning center or

safety compliance facility.

(2) A person who violates section 7(3) to (10), (15), or (16)

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 transfers medical marihuana in violation of

section 7(11) to (13) or who works in violation of section 7(14) is

not exempt under section 3 or 4 from arrest, prosecution, or

criminal or other penalties.

(4) A person who violates section 7(17) is guilty of a

misdemeanor punishable by imprisonment for not more than 93 days or

a fine of not more than $500.00, or both.

(5) The sanctions in this section apply beginning July 1,

2015.

Sec. 14. The department shall create and maintain a statewide

confidential database in compliance with section 7(10)

confidentiality requirements to ensure compliance with the time and

quantity limitations on transfers set forth in section 7(9). Each

provisioning center shall submit the records required under section

7(10) to the department for entry into the statewide database

established under this section. The department shall ensure that

each provisioning center has access to the database to allow

provisioning center agents to maintain proper statewide record

keeping to assure that transfers of marihuana and marihuana-infused

products are within the maximums permitted under this act.

Sec. 15. (1) The provisioning center regulation panel is

created within the department.

(2) The panel shall consist of 17 members, consisting of the

director of state police, or his or her designee, the president of

the Michigan sheriffs association, or his or her designee, the

president of the Michigan association of chiefs of police, or his

or her designee, and the following appointed by the governor:

(a) 2 registered qualifying patients.

(b) 1 physician.

(d) 2 representatives of provisioning centers.

(e) 2 representatives of safety compliance facilities.

(f) 2 representatives of municipalities, 1 nominated by the

Michigan municipal league and 1 nominated by the Michigan township

association.

(g) 1 representative of the department.

(h) 1 representative of the prosecuting attorneys association

of Michigan.

(i) 1 representative of the general public.

(3) The members first appointed to the panel shall be

appointed within 3 months after the effective date of this act and

shall serve at the pleasure of the governor. Appointed members of

the panel shall serve for terms of 2 years or until a successor is

appointed, whichever is later.

(4) If a vacancy occurs on the panel, the governor shall make

an appointment for the unexpired term in the same manner as the

original appointment.

(5) The first meeting of the panel shall be called by a

representative of the department within 1 month after the panel is

appointed. At the first meeting, the panel shall elect from among

its members a chairperson and any other officers it considers

necessary or appropriate. After the first meeting, the panel shall

meet at least 2 times each year, or more frequently at the call of

the chairperson.

(6) A majority of the members of the panel constitute a quorum

for the transaction of business. A majority of the members present

and serving are required for official action of the panel.

(7) The business that the panel performs shall be conducted at

a public meeting held in compliance with the open meetings act,

1976 PA 267, MCL 15.261 to 15.275.

(8) A writing prepared, owned, used, in the possession of, or

retained by the panel in the performance of an official function is

subject to the freedom of information act, 1976 PA 442, MCL 15.231

to 15.246.

(9) Members of the panel shall serve without compensation.

However, members of the panel may be reimbursed for their actual

and necessary expenses incurred in the performance of their

official duties as members of the panel.

(10) The panel shall make recommendations to the department

concerning promulgation of rules and, as requested by the

department, the administration of this act.

(11) State departments and agencies shall cooperate with the

panel and, upon request, provide it with meeting space and other

necessary resources to assist it in the performance of its duties.

Sec. 16. The department may require fees, as necessary, from

licensees and applicants for licenses to carry out its duties under

this act.

Sec. 17. Not later than October 1, 2015, the department shall

promulgate rules or emergency rules pursuant to the administrative

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. The

department shall consult with the advisory panel after it is

established under section 15, but has the ultimate discretion as to

the rules implementing this act that will be submitted for

processing. The rules shall address the manner in which

municipalities, provisioning centers, and safety compliance

facilities engage in the following:

(a) Labeling marihuana and marihuana-infused products.

(b) Packaging marihuana and marihuana-infused products.

(d) Submitting and maintaining database records.

(e) Advertising marihuana sales.

(f) Transactions with visiting qualifying patients.

Sec. 18. (1) This act does not require the violation of

federal law and does not give immunity from prosecution under

federal law.

(2) This act does not prevent federal enforcement of federal

law.

(3) Sections 3, 4, and 10 do not exempt a provisioning

center or its agents, safety compliance facility or its agents,

registered qualifying patient, or registered primary caregiver

from criminal penalties or civil prosecution under a law of

general application that would apply even if medical marihuana

or paraphernalia were not involved.

(4) A provisioning center or safety compliance facility is

not exempt from criminal or civil prosecution or sanctions for

cultivating marihuana.

Enacting section 1. This act takes effect April 1, 2015.

Enacting section 2. The legislature finds that the

necessity for access to safe sources of marihuana for medical