Bill Summary – FastDemocracy

68th Legislature                                                                                             HB 128.1
                                                HOUSE BILL NO. 128
                                           INTRODUCED BY J. KASSMIER
                         BY REQUEST OF THE ECONOMIC AFFAIRS INTERIM COMMITTEE
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   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING MARIJUANA LAWS; REVISING
   REPORTS TO THE LEGISLATURE; CLARIFYING PERMISSIVE ACTS AND EXCEPTIONS FOR
   REGISTERED CARDHOLDERS; CLARIFYING LIMITATIONS OF THE MONTANA MARIJUANA
   REGULATION AND TAXATION ACT; CLARIFYING PENALTIES; REVISING PENALTIES FOR SUSPENDED
   LICENSES; COMBINING SECTIONS ON LEGISLATIVE MONITORING; CLARIFYING LEGISLATIVE
   MONITORING DUTIES; REMOVING THE IDENTITY DISCLOSURE REQUIREMENT FOR LICENSEE
   COMPLAINTS; REMOVING OUTDATED DATES; REMOVING THE BACKGROUND CHECK REQUIREMENT
   FOR CERTAIN INDIVIDUALS; EXTENDING THE MORATORIUM FOR NEW MARIJUANA LICENSES;
   TRANSFERRING AUTHORITY OVER MARIJUANA TESTING LABORATORIES; CLARIFYING THE
   MINIMUM AGE TO ENTER A MARIJUANA BUSINESS; CLARIFYING LEGISLATIVE INTENT ON A
   CULTIVATOR'S ABILITY TO INCREASE TIERS; REVISING REQUIREMENTS FOR A COMBINED-USE
   LICENSE; REVISING REPORTING REQUIREMENTS FOR EMPLOYEE CONVICTIONS OR VIOLATIONS;
   COMBINING SECTIONS ON FRAUDULENT REPRESENTATION; CLARIFYING THE FORMULA FOR
   MUNICIPAL TAX REVENUE ALLOCATION; REMOVING CONFLICTING NOTICE REQUIREMENTS;
   EXTENDING RULEMAKING AUTHORITY; REVISING DEFINITIONS; PROVIDING AN APPROPRIATION;
   AMENDING SECTIONS 5-11-222, 15-64-101, 16-12-102, 16-12-104, 16-12-106, 16-12-108, 16-12-109, 16-12-
   110, 16-12-125, 16-12-129, 16-12-201, 16-12-202, 16-12-203, 16-12-206, 16-12-207, 16-12-208, 16-12-209,
   16-12-210, 16-12-222, 16-12-223, 16-12-225, 16-12-226, 16-12-301, 16-12-302, 16-12-310, 16-12-311, 16-12-
   508, AND 20-1-220, MCA; REPEALING SECTIONS 16-12-524 AND 16-12-532, MCA; AND PROVIDING
   EFFECTIVE DATES.”
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              WHEREAS, during the 2021-2022 interim, the Economic Affairs Interim Committee received testimony
   relating to the interpretation and implementation of the Montana Marijuana Regulation and Taxation Act; and
              WHEREAS, specifically, the committee received testimony that section 16-12-223, MCA, allowed only
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   qualifying marijuana cultivator licensees to increase production tiers at the licensee's renewals and not at the
   licensee's discretion; and
              WHEREAS, the committee disagreed with this interpretation and provided its analysis; and
              WHEREAS, the issue was resolved to the committee's satisfaction; and
              WHEREAS, this bill amends section 16-12-223, MCA, to remove all existing doubt whether the
   Legislature intended to allow a qualifying marijuana cultivator licensee to increase production tiers at their
   discretion.
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              Section 1. Section 5-11-222, MCA, is amended to read:
              "5-11-222.   Reports to legislature. (1) (a) Except as provided in subsection subsections (1)(b) and
   (6), a report to the legislature means a biennial report required by the legislature and filed in accordance with 5-
   11-210 on or before September 1 of each year preceding the convening of a regular session of the legislature.
              (b)    If otherwise specified in law, a report may be required more or less frequently than the biennial
   requirement in subsection (1)(a).
              (2)    Reports to the legislature include:
              (a)    annual reports on the unified investment program for public funds and public retirement
   systems and state compensation insurance fund assets audits from the board of investments in accordance
   with Article VIII, section 13, of the Montana constitution;
              (b)    federal mandates requirements from the governor in accordance with 2-1-407;
              (c)    activities of the state records committee in accordance with 2-6-1108;
              (d)    revenue studies from the director of revenue, if requested, in accordance with 2-7-104;
              (e)    legislative audit reports from the legislative audit division in accordance with 2-8-112 and 23-7-
   410;
              (f)    progress on gender and racial balance from the governor in accordance with 2-15-108;
              (g)    a mental health report from the ombudsman in accordance with 2-15-210;
              (h)    policies related to children and families from the interagency coordinating council for state
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68th Legislature                                                                                                    HB 128.1
   prevention in accordance with 2-15-225;
              (i)   watercourse name changes, if any, from the secretary of state in accordance with 2-15-401;
              (j)   results of programs established in 2-15-3111 through 2-15-3113 from the livestock loss board
   in accordance with 2-15-3113;
              (k)   the allocation of space report from the department of administration required in accordance
   with 2-17-101;
              (l)   information technology activities in accordance with 2-17-512;
              (m)   state strategic information technology plan exceptions, if granted, from the department of
   administration in accordance with 2-17-515;
              (n)   the state strategic information technology plan and biennial report from the department of
   administration in accordance with 2-17-521 and 2-17-522;
              (o)   reports from standing, interim, and administrative committees, if prepared, in accordance with
   2-17-825 and 5-5-216;
              (p)   statistical and other data related to business transacted by the courts from the court
   administrator, if requested, in accordance with 3-1-702;
              (q)   the judicial standards commission report in accordance with 3-1-1126;
              (r)   an annual report on the actual cost of legislation that had a projected fiscal impact from the
   office of budget and program planning in accordance with 5-4-208;
              (s)   a link to annual state agency reports on grants awarded in the previous fiscal year established
   by the legislative finance committee in accordance with 5-12-208;
              (t)   reports prepared by the legislative fiscal analyst, and as determined by the analyst, in
   accordance with 5-12-302(4);
              (u)   a report, if necessary, on administrative policies or rules adopted under 5-11-105 that may
   impair the independence of the legislative audit division in accordance with 5-13-305;
              (v)   if a waste of state resources occurs, a report from the legislative state auditor, in accordance
   with 5-13-311;
              (w)   school funding commission reports each fifth interim in accordance with 5-20-301;
              (x)   a report of political committee operations conducted on state-owned property, if required, from
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   a political committee to the legislative services division in accordance with 13-37-404;
              (y)        a report concerning taxable value from the department of revenue in accordance with 15-1-
   205;
              (z)        a report on tax credits from the revenue interim committee in accordance with 15-30-2303;
              (aa)       semiannual reports on the Montana heritage preservation and development account from the
   Montana heritage preservation and development commission in accordance with 15-65-121;
              (bb)       general marijuana regulation reports and medical marijuana registry reports from the
   department of revenue in accordance with 16-12-110;
              (cc) medical marijuana registry reports from the department of revenue in accordance with 16-12-532
   (3);
              (dd)(cc)           annual reports on general fund and nongeneral fund encumbrances from the
   department of administration in accordance with 17-1-102;
              (ee)(dd)           loans or loan extensions authorized for two consecutive fiscal years from the
   department of administration and office of commissioner of higher education, including negative cash balances
   from the commissioner of higher education, in accordance with 17-2-107;
              (ff)(ee)           a report of local government entities that have balances contrary to limitations provided
   for in 17-2-302 or that failed to reduce the charge from the department of administration in accordance with 17-
   2-304;
              (gg)(ff)           an annual report from the board of investments in accordance with 17-5-1650(2);
              (hh)(gg)           a report on retirement system trust investments and benefits from the board of
   investments in accordance with 17-6-230;
              (ii)(hh)           recommendations for reductions in spending and related analysis, if required, from the
   office of budget and program planning in accordance with 17-7-140;
              (jj)(ii)           a statewide facility inventory and condition assessment from the department of
   administration in accordance with 17-7-202;
              (kk)(jj)           actuary reports and investigations for public retirement systems from the public
   employees' retirement board in accordance with 19-2-405;
              (ll)(kk)           a work report from the public employees' retirement board in accordance with 19-2-
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   407;
              (mm)(ll)     annual actuarial reports and evaluations from the teachers' retirement board in
   accordance with 19-20-201;
              (nn)(mm)     reports from the state director of K-12 career and vocational and technical education,
   as requested, in accordance with 20-7-308;
              (oo)(nn)     5-year state plan for career and technical education reports from the board of regents
   in accordance with 20-7-330;
              (pp)(oo)     a gifted and talented students report from the office of public instruction in accordance
   with 20-7-904;
              (qq)(pp)     status changes for at-risk students from the office of public instruction in accordance
   with 20-9-328;
              (rr)(qq)     status changes for American Indian students from the office of public instruction in
   accordance with 20-9-330;
              (ss)(rr)     reports regarding the Montana Indian language preservation program from the office of
   public instruction in accordance with 20-9-537;
              (tt)(ss)     proposals for funding community colleges from the board of regents in accordance with
   20-15-309;
              (uu)(tt)     expenditures and activities of the Montana agricultural experiment station and
   extension service, as requested, in accordance with 20-25-236;
              (vv)(uu)     reports, if requested by the legislature, from the president of each of the units of the
   higher education system in accordance with 20-25-305;
              (ww)(vv)     reports, if prepared by a public postsecondary institution, regarding free expression
   activities on campus in accordance with 20-25-1506;
              (xx)(ww)     reports from the Montana historical society trustees in accordance with 22-3-107;
              (yy)(xx)     state lottery reports in accordance with 23-7-202;
              (zz)(yy)     a report from the division of banking and financial institutions, if required, from the
   department of administration in accordance with 32-11-306;
              (aaa)(zz)    state fund reports, if required, from the commissioner in accordance with 33-1-115;
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68th Legislature                                                                                                HB 128.1
              (bbb)(aaa)   reports from the department of labor and industry in accordance with 39-6-101;
              (ccc)(bbb)   victim unemployment benefits reports from the department of labor and industry in
   accordance with 39-51-2111;
              (ddd)(ccc)   state fund business reports in accordance with 39-71-2363;
              (eee)(ddd)   risk-based capital reports, if required, from the state fund in accordance with 39-71-
   2375;
              (fff)(eee)   child custody reports from the office of the court administrator in accordance with 41-3-
   1004;
              (ggg)(fff)   reports of remission of fine or forfeiture, respite, commutation, or pardon granted from
   the governor in accordance with 46-23-316;
              (hhh)(ggg)   annual statewide public defender reports from the office of state public defender in
   accordance with 47-1-125;
              (iii)(hhh)   a trauma care system report from the department of public health and human services
   in accordance with 50-6-402;
              (jjj)(iii)   an older Montanans trust fund report from the department of public health and human
   services in accordance with 52-3-115;
              (kkk)(jjj)   Montana criminal justice oversight council reports in accordance with 53-1-216;
              (lll)(kkk)   medicaid block grant reports from the department of public health and human services
   in accordance with 53-1-611;
              (mmm)(lll)   reports on the approval and implementation status of medicaid section 1115 waivers in
   accordance with 53-2-215;
              (nnn)(mmm)   provider rate, medicaid waiver, or medicaid state plan change reports from the
   department of public health and human services in accordance with 53-6-101;
              (ooo)(nnn)   medicaid funding reports from the department of public health and human services in
   accordance with 53-6-110;
              (ppp)(ooo)   proposals regarding managed care for medicaid recipients, if required, from the
   department of public health and human services in accordance with 53-6-116;
              (qqq)(ppp)   suicide reduction plans from the department of public health and human services in
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   accordance with 53-21-1102;
              (rrr)(qqq)     a compliance and inspection report from the department of corrections in accordance
   with 53-30-604;
              (sss)(rrr)     emergency medical services grants from the department of transportation in
   accordance with 61-2-109;
              (ttt)(sss)     annual financial reports on the environmental contingency account from the
   department of environmental quality in accordance with 75-1-1101;
              (uuu)(ttt)     the Flathead basin commission report in accordance with 75-7-304;
              (vvv)(uuu)     a report from the land board, if prepared, in accordance with 76-12-109;
              (www)(vvv)     an annual state trust land report from the land board in accordance with 77-1-223;
              (xxx)(www)     a noxious plant report, if prepared, from the department of agriculture in accordance
   with 80-7-713;
              (yyy)(xxx)     state water plans from the department of natural resources and conservation in
   accordance with 85-1-203;
              (zzz)(yyy)     reports on the allocation of renewable resources grants and loans for emergencies, if
   required, from the department of natural resources and conservation in accordance with 85-1-605;
              (aaaa)(zzz)    water storage projects from the governor's office in accordance with 85-1-704;
              (bbbb)(aaaa)   upper Clark Fork River basin steering committee reports, if prepared, in accordance
   with 85-2-338;
              (cccc)(bbbb)   upland game bird enhancement program reports in accordance with 87-1-250;
              (dddd)(cccc)   private land/public wildlife advisory committee reports in accordance with 87-1-269;
              (eeee)(dddd)   a future fisheries improvement program report from the department of fish, wildlife, and
   parks in accordance with 87-1-272;
              (ffff)(eeee)   license revenue recommendations from the department of fish, wildlife, and parks in
   accordance with 87-1-629;
              (gggg)(ffff)   land information data reports from the state library in accordance with 90-1-404;
              (hhhh)(gggg)   hydrocarbon and geology investigation reports from the bureau of mines and geology
   in accordance with 90-2-201;
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              (iiii)(hhhh)      coal ash markets investigation reports from the dep