Bill Summary – FastDemocracy

HOUSE BILL NO. 5884
 June 27, 2024, Introduced by Reps. Wilson, Filler, Edwards, Aragona, Dievendorf, Steckloff,
    Rheingans, Rogers, Tsernoglou, McFall, Liberati, Herzberg, Hope, Hood, Morgan and
    McKinney and referred to the Committee on Regulatory Reform.
      A bill to amend 2018 IL 1, entitled
"Michigan Regulation and Taxation of Marihuana Act,"
by amending the title and sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 9a,
11a, 12, 13, 14, 15, and 17 (MCL 333.27951, 333.27952, 333.27953,
27954, 333.27955, 333.27956, 333.27957, 333.27958, 333.27959,
27959a, 333.27961a, 333.27962, 333.27963, 333.27964, 333.27965,
and 333.27967), sections 3, 7, 8, and 13 as amended by 2023 PA 166,
section 9a as added by 2020 PA 208, section 11a as added by 2021 PA
55, and section 14 as amended by 2023 PA 165, and by adding
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     sections 20, 21, 22, 23, 24, 24a, 25, 26, 27, and 28; and to repeal
     acts and parts of acts.
                  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
                                 TITLE
       An initiation of legislation to allow under state law for the
 personal possession, cultivation, transfer, and use of marihuana by
 persons individuals 21 years of age or older; to provide for allow
 for the lawful commercial cultivation, processing, testing,
 transportation, and sale of marihuana and industrial hemp by
 certain persons; 21 years of age or older; to allow for the
 commercial processing, distribution, and sale of industrial hemp by
 certain persons; to require the licensing of certain persons
 engaged in commercial marihuana activities; to permit the taxation
 of revenue derived from impose a tax on commercial marihuana
 facilities; sales; to provide for the powers and duties of certain
 state and local governmental officers and entities; to permit
 require the promulgation of administrative rules; and to prescribe
 certain penalties and civil sanctions for violations of this act.
 If not enacted by the Michigan State Legislature in accordance with
 the Michigan Constitution of 1963, the proposed legislation is to
 be voted on at the General Election, November 6, 2018.
       Sec. 1. This act shall be known and may be cited as the
 Michigan Regulation and Taxation of Marihuana Act."Michigan
 regulation and taxation of marihuana act".
       Sec. 2. (1) The purpose of this act is to make do both of the
 following:
       (a) Make marihuana legal under state and local law for adults
 individuals who are 21 years of age or older. , to make industrial
 hemp legal under state and local law, and to control
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       (b) Control the commercial production and distribution of
 marihuana under a system that licenses, regulates, and taxes the
 businesses involved.
       (2) The intent of this act is to prevent do all of the
 following:
       (a) Prevent arrest and penalty for personal possession and
 cultivation of marihuana by adults individuals who are 21 years of
 age or older. ; remove
       (b) Remove the commercial production and distribution of
 marihuana from the illicit market. ; prevent
       (c) Prevent revenue generated from commerce in marihuana from
 going to criminal enterprises or gangs. ; prevent
       (d) Prevent the unauthorized distribution of marihuana to
 persons under individuals younger than 21 years of age. ; prevent
       (e) Prevent the diversion of marihuana to illicit markets. ;
 ensure
       (f) Ensure the safety of marihuana and marihuana-infused
 products. ; and ensure
       (g) Ensure the security of marihuana establishments.licensed
 premises.
       (3) This act does not affect the cannabis regulatory agency's
 ability to enter into an agreement with an Indian tribe concerning
 the regulation of marihuana.
       (4) To the fullest extent possible, this act shall must be
 interpreted and construed in accordance with the purpose and intent
 set forth in this section.
       Sec. 3. As used in this act:
       (a) "Adulterated marihuana" or "adulterated marihuana-infused
 product" means a product sold as marihuana that contains any
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 unintended substance or chemical or biological matter other than
 marihuana and that causes an adverse reaction to an individual who
 ingests or consumes the product.
       (b) "Applicant" means a person that applies for a state
 license. Applicant includes, with respect to disclosures in an
 application for a state license or for purposes of ineligibility
 for a state license, a managerial employee of the applicant, a
 person holding a direct or indirect ownership interest of more than
 10% in the applicant, and the following for each type of applicant:
       (i) For an individual or sole proprietorship: the proprietor
 and the proprietor's spouse.
       (ii) For a partnership and limited liability partnership: all
 partners and their spouses. For a limited partnership and limited
 liability limited partnership: all general and limited partners,
 not including a limited partner holding a direct or indirect
 ownership interest of 10% or less and who does not exercise control
 over or participate in the management of the partnership, and their
 spouses. For a limited liability company: all members and managers,
 not including a member holding a direct or indirect ownership
 interest of 10% or less and who does not exercise control over or
 participate in the management of the company, and their spouses.
       (iii) For a privately held corporation: all corporate officers
 or persons with equivalent titles and their spouses, all directors
 and their spouses, and all stockholders, not including those
 holding a direct or indirect ownership interest of 10% or less, and
 their spouses.
       (iv) For a publicly held corporation: all corporate officers or
 persons with equivalent titles and their spouses, all directors and
 their spouses, and all stockholders, not including those holding a
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 direct or indirect ownership interest of 10% or less, and their
 spouses.
       (v) For a nonprofit corporation: all individuals and entities
 with membership or shareholder rights in accordance with the
 articles of incorporation or the bylaws, and the spouses of the
 individuals.
       (c) (a) "Cannabis regulatory agency" means the marijuana
 regulatory agency created under Executive Reorganization Order No.
 2019-2, MCL 333.27001, renamed the cannabis regulatory agency under
 Executive Reorganization Order No. 2022-1, MCL 333.27002.
       (d) "Class A marihuana grower" means a person that holds a
 state license described in section 20(1)(a)(i) or (1)(b)(i).
       (e) "Class B marihuana grower" means a person that holds a
 state license described in section 20(1)(a)(ii) or (1)(b)(ii).
       (f) "Class C marihuana grower" means a person that holds a
 state license described in section 20(1)(a)(iii) or (1)(b)(iii).
       (g) (b) "Cultivate" means to propagate, breed, grow, harvest,
 dry, cure, or separate parts of a marihuana plant by manual or
 mechanical means.
       (c) "Department" means the cannabis regulatory agency.
       (h) "Financial institution" means any of the following:
       (i) A state or national bank.
       (ii) A state or federally chartered savings and loan
 association.
       (iii) A state or federally chartered savings bank.
       (iv) A state or federally chartered credit union.
       (v) An insurance company.
       (vi) An entity that offers any of the following to a resident
 of this state:
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       (A) A mutual fund account.
       (B) A securities brokerage account.
       (C) A money market account.
       (D) A retail investment account.
       (vii) A legal entity regulated by the Securities and Exchange
 Commission that collects funds from the public.
       (viii) A legal entity that is a member of the National
 Association of Securities Dealers and that collects funds from the
 public.
       (ix) Any other legal entity that collects funds from the
 public.
       (i) "Financial service" means a deposit; withdrawal; transfer
 between accounts; exchange of currency; loan; extension of credit;
 purchase or sale of any stock, bond, certificate of deposit, or
 other monetary instrument; or any other payment, transfer, or
 delivery by, through, or to a financial institution, by whatever
 means effected.
       (j) (d) "Indian lands" means any of the following:
       (i) All lands within the limits of an Indian reservation.
       (ii) Any lands title to which is either held in trust by the
 United States for the benefit of any Indian tribe or individual or
 held by any Indian tribe or individual subject to restriction by
 the United States against alienation and over which an Indian tribe
 exercises governmental power.
       (k) (e) "Indian tribe" means any Indian tribe, band, nation,
 or other organized group or community of Indians which is
 recognized as eligible by the United States Secretary of the
 Interior for the special programs and services provided by the
 United States to Indians because of their status as Indians, and is
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 recognized as possessing powers of self-government.
       (l) (f) "Industrial hemp" means any of the following:
       (i) A plant of the genus Cannabis, whether growing or not, with
 a THC concentration of 0.3% or less on a dry-weight basis.
       (ii) A part of a plant of the genus Cannabis, whether growing
 or not, with a THC concentration of 0.3% or less on a dry-weight
 basis.
       (iii) The seeds of a plant of the genus Cannabis with a THC
 concentration of 0.3% or less on a dry-weight basis.
       (iv) If it has a THC concentration of 0.3% or less on a dry-
 weight basis, a compound, manufacture, derivative, mixture,
 preparation, extract, cannabinoid, acid, salt, isomer, or salt of
 an isomer of any of the following:
       (A) A plant of the genus Cannabis.
       (B) A part of a plant of the genus Cannabis.
       (v) A product to which 1 of the following applies:
       (A) If the product is intended for human or animal
 consumption, the product, in the form in which it is intended for
 sale to a consumer, meets both of the following requirements:
       (I) Has a THC concentration of 0.3% or less on a dry-weight or
 per volume per-volume basis.
       (II) Contains a total amount of THC that is less than or equal
 to the limit established by the cannabis regulatory agency under
 section 8(1)(n).
       (B) If the product is not intended for human or animal
 consumption, the product meets both of the following requirements:
       (I) Contains a substance listed in subparagraph (i), (ii), (iii),
 or (iv).
       (II) Has a THC concentration of 0.3% or less on a dry-weight
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 basis.
       (m) "Licensed premises" means the location at which the
 cannabis regulatory agency has authorized a licensee to operate.
       (n) (g) "Licensee" means a person holding a state license.
       (o) (h) "Marihuana" means any of the following:
       (i) A plant of the genus Cannabis, whether growing or not.
       (ii) A part of a plant of the genus Cannabis, whether growing
 or not.
       (iii) The seeds of a plant of the genus Cannabis.
       (iv) Marihuana concentrate.
       (v) A compound, manufacture, salt, derivative, mixture,
 extract, acid, isomer, salt of an isomer, or preparation of any of
 the following:
       (A) A plant of the genus Cannabis.
       (B) A part of a plant of the genus Cannabis.
       (C) The seeds of a plant of the genus Cannabis.
       (D) Marihuana concentrate.
       (vi) A marihuana-infused product.
       (vii) A product with a THC concentration of more than 0.3% on a
 dry-weight or per volume per-volume basis in the form in which it
 is intended for sale to a consumer.
       (viii) A product that is intended for human or animal
 consumption and that contains, in the form in which it is intended
 for sale to a consumer, a total amount of THC that is greater than
 the limit established by the cannabis regulatory agency under
 section 8(1)(n).
       (p) (i) Except for marihuana concentrate extracted from any of
 the following, "marihuana" does not include any of the following:
       (i) The mature stalks of a plant of the genus Cannabis.
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       (ii) Fiber produced from the mature stalks of a plant of the
 genus Cannabis.
       (iii) Oil or cake made from the seeds of a plant of the genus
 Cannabis.
       (iv) A compound, manufacture, salt, derivative, mixture, or
 preparation of the mature stalks of a plant of the genus Cannabis.
       (v) Industrial hemp.
       (vi) An ingredient combined with marihuana to prepare topical
 or oral administrations, food, drink, or other products.
       (vii) A drug for which an application filed in accordance with
 21 USC 355 is approved by the Food and Drug Administration.
       (q) (j) "Marihuana accessories" means any equipment, product,
 material, or combination of equipment, products, or materials, that
 is specifically designed for use in planting, any of the following:
       (i) Planting, propagating, cultivating, growing, harvesting,
 manufacturing, compounding, converting, producing, processing,
 preparing, testing, analyzing, packaging, repackaging, storing, or
 containing , ingesting, marihuana.
       (ii) Ingesting, inhaling, or otherwise introducing marihuana
 into the human body of a human or animal.
       (r) (k) "Marihuana concentrate" means the resin extracted from
 any part of a marihuana plant. of the genus Cannabis.
       (l) "Marihuana establishment" means a marihuana grower,
 marihuana safety compliance facility, marihuana processor,
 marihuana microbusiness, marihuana retailer, marihuana secure
 transporter, or any other type of marihuana-related business
 licensed by the cannabis regulatory agency.
       (s) (m) "Marihuana grower" means a person licensed to
 cultivate marihuana and sell or otherwise transfer marihuana to
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 marihuana establishments.that holds a state license described in
 section 20.
       (t) (n) "Marihuana-infused product" means a topical
 formulation, tincture, beverage, edible substance, or similar
 product containing marihuana and other ingredients and that is
 intended for human or animal consumption.
       (u) (o) "Marihuana microbusiness" means a person licensed to
 cultivate not more than 150 marihuana plants; process and package
 marihuana; and sell or otherwise transfer marihuana to individuals
 who are 21 years of age or older or to a marihuana safety
 compliance facility, but not to other marihuana establishments.that
 holds a state license described in section 25.
       (v) "Marihuana plant" means any plant of the genus Cannabis
 sativa L. Marihuana plant does not include industrial hemp.
       (w) (p) "Marihuana processor" means a person licensed to
 obtain marihuana from marihuana establishments; process and package
 marihuana; and sell or otherwise transfer marihuana to marihuana
 establishments.that holds a state license described in section 21.
       (x) "Marihuana provisioning center" means a person that holds
 a state license described in section 24a.
       (y) "Marihuana regulation fund" means the marihuana regulation
 fund created under section 14.
       (z) (q) "Marihuana retailer" means a person licensed to obtain
 marihuana from marihuana establishments and to sell or otherwise
 transfer marihuana to marihuana establishments and to individuals
 who are 21 years of age or older.that holds a state license
 described in section 24.
       (aa) (r) "Marihuana safety compliance facility" means a person
 licensed to test marihuana, including certification for potency and
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 the presence of contaminants.that holds a state license described
 in section 23.
        (bb) (s) "Marihuana secure transporter" means a person
 licensed to obtain marihuana from marihuana establishments in order
 to transport marihuana to marihuana establishments.that holds a
 state license described in section 22.
        (t) "Marijuana regulatory agency", u