Bill Summary – FastDemocracy

67th Legislature                                                                                                  SB 341.1
                                                   SENATE BILL NO. 341
                                              INTRODUCED BY D. HOWARD
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   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING BUSINESS LAWS RELATED TO THE
   SALE OF MARIJUANA; PROVIDING REQUIREMENTS AND LIMITATIONS ON THE NUMBER AND
   LOCATION OF DISPENSARIES; PROVIDING LIMITS ON WEEKLY MARIJUANA PURCHASES BY
   CONSUMERS; PROHIBITING PEOPLE WITH FELONIES FROM OWNING OR WORKING IN
   DISPENSARIES FOR 10 YEARS AFTER CONVICTION; PROVIDING EMPLOYER PROTECTIONS UNDER
   THE WRONGFUL DISCHARGE ACT; LIMITING THC LEVELS; PROVIDING RULEMAKING AUTHORITY;
   AND AMENDING SECTIONS 16-12-104, 16-12-105, 16-12-106, 16-12-108, 16-12-112, 16-12-203, 16-12-207,
   16-12-208, AND 39-2-313, MCA.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              Section 1. Section 16-12-104, MCA, is amended to read:
              "16-12-104. (Effective October 1, 2021) Department responsibilities -- licensure. (1) The
   department shall establish and maintain a registry of persons who receive licenses under this chapter. The
   department shall issue:
              (a)   licenses:
              (i)   to persons who apply to operate as adult-use providers or adult-use marijuana-infused products
   providers and who submit applications meeting the requirements of this chapter; and
              (ii) for adult-use dispensaries established by adult-use providers or adult-use marijuana-infused
   products providers; and
              (b)   endorsements for manufacturing to an adult-use provider or an adult-use marijuana-infused
   products provider that applies for a manufacturing endorsement and meets requirements established by the
   department by rule.
              (2)   A person who obtains an adult-use provider license, adult-use marijuana-infused products
   provider license, or adult-use dispensary license or an employee of a licensed adult-use provider or adult-use
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   marijuana-infused products provider is authorized to cultivate, manufacture, possess, sell, and transport
   marijuana as allowed by this chapter.
              (3)   A person who obtains a testing laboratory license or an employee of a licensed testing laboratory
   is authorized to possess, test, and transport marijuana as allowed by this chapter.
              (4)   The department shall conduct criminal history background checks as required by 50-46-307 and
   50-46-308 before issuing a license to a person named as a provider or marijuana-infused products provider.
              (5)   Licenses issued pursuant to this chapter must:
              (a)   be laminated and produced on a material capable of lasting for the duration of the time period for
   which the license is valid;
              (b)   indicate whether an adult-use provider or an adult-use marijuana-infused products provider has an
   endorsement for manufacturing;
              (c)   state the date of issuance and the expiration date of the license; and
              (d)   contain other information that the department may specify by rule.
              (6)   (a) The department shall make application forms available and begin accepting applications for
   licensure and endorsement under this chapter on or before January 1, 2022.
              (b)   The department shall review the information contained in an application or renewal submitted
   pursuant to this chapter and shall approve or deny an application:
              (i)   within 30 days of receiving the application or renewal and all related application materials from an
   existing licensed provider or marijuana-infused products provider; and
              (ii) within 90 days of receiving the application and all related application materials from a new
   applicant.
              (c)   If the department fails to act on a completed application within the time allowed under subsection
   (6)(b), the department shall:
              (i)   reduce the cost of the licensing fee for a new applicant for licensure or endorsement or for a
   licensee seeking renewal of a license by 5% each week that the application is pending; and
              (ii) allow a licensee to continue operation until the department takes final action.
              (d)   Applications that are not processed within the time allowed under subsection (6)(b) remain active
   until the department takes final action.
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              (e)   (i) The department may not take final action on an application for a license or renewal of a license
   until the department has completed a satisfactory inspection as required by this chapter and related
   administrative rules.
              (ii) Failure by the department to complete the required inspection within the time allowed under
   subsection (6)(b) does not prevent an application from being considered complete for the purpose of subsection
   (6)(c).
              (f)   The department shall issue a license or endorsement within 5 days of approving an application or
   renewal.
              (7)   Review of a rejection of an application or renewal may be conducted as a contested case hearing
   pursuant to the provisions of the Montana Administrative Procedure Act.
              (8)   Licenses and endorsements issued to adult-use providers and adult-use marijuana-infused
   products providers must be renewed annually.
              (9)   The department shall provide the names and phone numbers of adult-use providers and adult-use
   marijuana-infused products providers and the city, town, or county where registered premises and testing
   laboratories are located to the public on the department's website. The department may not disclose the
   physical location or address of an adult-use provider, adult-use marijuana-infused products provider, adult-use
   dispensary, or testing laboratory.
              (10) The department may not prohibit an adult-use provider, adult-use marijuana-infused products
   provider, or adult-use dispensary licensee from operating at a shared location with a provider, marijuana-
   infused products provider, or dispensary as defined in 50-46-302 if the provider, marijuana-infused products
   provider, or dispensary is owned by the same person.
              (11) The department may not adopt rules requiring a consumer to provide an adult-use provider, adult-
   use marijuana-infused products provider, or adult-use dispensary licensee with identifying information other
   than identification to determine the consumer's age or require the recording of personal information about
   consumers other than information typically required in a retail transaction except as necessary to implement the
   weekly purchase limitation described in 16-12-105 and 16-12-106."
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              Section 2. Section 16-12-105, MCA, is amended to read:
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              "16-12-105. (Effective October 1, 2021) Department responsibility to monitor and assess
   marijuana production, testing, sales, and license revocation. (1) (a) The department shall implement a
   system for tracking marijuana, marijuana concentrate, and marijuana-infused products from either the seed or
   the seedling stage until the marijuana, marijuana concentrate, or marijuana-infused product is sold to a
   consumer. The system must:
              (i)   ensure that the marijuana, marijuana concentrate, or marijuana-infused product cultivated,
   manufactured, possessed, and sold under this chapter is not sold or otherwise provided to an individual who is
   under 21 years of age and who is not a medical marijuana registered cardholder;
              (ii) be capable of notifying adult-use providers and adult-use marijuana-infused products providers,
   before a sale is made, of the amount of marijuana a consumer may purchase before reaching the weekly limit
   provided in 16-12-106; and
              (ii)(iii) be made available to adult-use providers, adult-use marijuana-infused products providers, adult-
   use dispensaries, and testing laboratories at no additional cost.
              (b)   The department may implement the same system that is used to track marijuana, marijuana
   concentrate, and marijuana-infused products pursuant to 50-46-304.
              (2)   The department shall assess applications for an adult-use provider or adult-use marijuana-infused
   products provider license to determine if a person with a financial interest in the applicant meets any of the
   criteria established in 16-12-203 for denial of a license.
              (3)   Before issuing or renewing a license, the department shall inspect the proposed registered
   premises of an adult-use provider or adult-use marijuana-infused products provider and shall inspect the
   property to be used to ensure an applicant for licensure or license renewal is in compliance with this chapter.
   The department may not issue or renew a license if the applicant does not meet the requirements of this
   chapter.
              (4)   (a) The department shall license providers and marijuana-infused products providers according to
   a tiered canopy system.
              (b)   (i) The system shall must include, at a minimum, the following license types:
              (A)    A micro tier canopy license allows for a canopy of up to 250 square feet at one registered
   premises.
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              (B)    A tier 1 canopy license allows for a canopy of up to 1,000 square feet at one registered premises.
   A minimum of 500 square feet must be equipped for cultivation.
              (C)    A tier 2 canopy license allows for a canopy of up to 2,500 square feet at up to two registered
   premises. A minimum of 1,100 square feet must be equipped for cultivation.
              (D)    A tier 3 canopy license allows for a canopy of up to 5,000 square feet at up to three registered
   premises. A minimum of 2,600 square feet must be equipped for cultivation.
              (E)    A tier 4 canopy license allows for a canopy of up to 7,500 square feet at up to four registered
   premises. A minimum of 5,100 square feet must be equipped for cultivation.
              (F)   A tier 5 canopy license allows for a canopy of up to 10,000 square feet at up to five registered
   premises. A minimum of 7,750 square feet must be equipped for cultivation.
              (G)    A tier 6 canopy license allows for a canopy of up to 13,000 square feet at up to five registered
   premises. A minimum of 10,250 square feet must be equipped for cultivation.
              (H)    A tier 7 canopy license allows for a canopy of up to 15,000 square feet at up to five registered
   premises. A minimum of 13,250 square feet must be equipped for cultivation.
              (I)   A tier 8 canopy license allows for a canopy of up to 17,500 square feet at up to five registered
   premises. A minimum of 15,250 square feet must be equipped for cultivation.
              (J)   A tier 9 canopy license allows for a canopy of up to 20,000 square feet at up to six registered
   premises. A minimum of 17,775 square feet must be equipped for cultivation.
              (K)    A tier 10 canopy license allows for a canopy of up to 30,000 square feet at up to seven registered
   premises. A minimum of 24,000 square feet must be equipped for cultivation.
              (ii) As used in this subsection (4)(b), "equipped for cultivation" means that the space is either ready for
   cultivation or in use for cultivation.
              (c)   An adult-use provider or adult-use marijuana-infused products provide) provider who has reached
   capacity under the existing license may apply to advance to the next licensing tier. The department:
              (i)   may increase a licensure level by only one tier at a time; and
              (ii) shall conduct an inspection of the adult-use provider or adult-use marijuana-infused products
   provider's registered premises and proposed premises within 30 days of receiving the application and before
   approving the application.
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              (d)   The department may create additional licensing tiers by rule if a provider with a tier 10 canopy
   license petitions the department to create a new licensure level and:
              (i)   the producer or provider demonstrates that the licensee is using the full amount of canopy currently
   authorized; and
              (ii) the tracking system shows the licensee is selling at least 80% of the marijuana or marijuana-infused
   products produced by the square footage of the licensee's existing license over the 2 previous quarters or the
   licensee can otherwise demonstrate to the department that there is a market for the marijuana or marijuana-
   infused products it seeks to produce.
              (e)   The department is authorized to create additional tiers as necessary, including an adjusted tier
   system to account for outdoor cultivation.
              (f)   The registered premises limitations for each tier of licensing apply only to registered premises at
   which marijuana is cultivated. The limitations do not apply to the number of adult-use dispensaries an adult-use
   provider or adult-use marijuana-infused products provider may have.
              (g)   The department shall require evidence that the licensee is able to successfully cultivate the
   minimum amount of space allowed for the tier and sell the amount of marijuana produced by the minimum
   cultivation level before allowing a licensee to move up a tier. Annual licensing fees must be prorated based on
   the time licensed at a specific tier if less than 1 year.
              (h)   No person may be initially licensed greater than a tier 2 unless the person is purchasing a
   business licensed at a tier higher than tier 2 or the person is already licensed at higher than tier 2 under Title
   50, chapter 46, part 3, and is applying for the equivalent size tier under this chapter."
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              Section 3. Section 16-12-106, MCA, is amended to read:
              "16-12-106.    Personal use and cultivation of marijuana -- penalties. (1) Subject to the limitations in
   16-12-108, the following acts are lawful and may not be an offense under state law or the laws of any local
   government within the state, be a basis to impose a civil fine, penalty, or sanction, or be a basis to detain,
   search, or arrest, or otherwise deny any right or privilege, or to seize or forfeit assets under state law or the
   laws of any local government for a person who is 21 years of age or older:
              (a)   possessing, purchasing, obtaining, using, ingesting, inhaling, or transporting 1 ounce or less of
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   marijuana, except that not more than 8 grams may be in a concentrated form;
              (b)      purchasing a weekly maximum of 1 ounce of marijuana or 8 grams of marijuana in a concentrated
   form;
              (b)(c)     transferring, delivering, or distributing without consideration, to a person who is 21 years of age
   or older, 1 ounce or less of marijuana, except that not more than 8 grams may be in a concentrated form;
              (c)(d)     in or on the grounds of a private residence, possessing, planting, or cultivating up to four
   mature marijuana plants and four seedlings and possessing, harvesting, drying, processing, or manufacturing
   the marijuana, provided that:
              (i)   marijuana plants and any marijuana produced by the plants in excess of 1 ounce must be kept in a
   locked space in or on the grounds of one private residence and may not be visible by normal, unaided vision
   from a public place;
              (ii) not more than twice the number of marijuana plants permitted under this subsection (1)(c) (1)(d)
   may be cultivated in or on the grounds of a single private residence simultaneously;
              (iii) a person growing or storing marijuana plants under this subsection (1)(c) (1)(d) must own the
   private residence where the plants are cultivated and stored or obtain written permission to cultivate and store
   marijuana from the owner of the private residence; and
              (iv) no portion of a private residence used for cultivation of marijuana and manufacture of marijuana-
   infused products for personal