Bill Summary – FastDemocracy

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                                      _____________ BILL NO. _____________
                                            (Primary Sponsor)
                             INTRODUCED BY _________________________________________________
                        BY REQUEST OF THE ECONOMIC AFFAIRS INTERIM COMMITTEE
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 A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING LAWS RELATED TO SYNTHETIC
 CANNABINOIDS; REVISING DEFINITIONS; PROVIDING RULEMAKING AUTHORITY; AMENDING
 SECTIONS 16-12-101, 16-12-102, 16-12-108, 16-12-112, 16-12-117, 16-12-208, 16-12-305, AND 45-5-623,
 MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.”
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 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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         Section 1. Section 16-12-101, MCA, is amended to read:
         "16-12-101.      Short title -- purpose. (1) This chapter may be cited as the "Montana Marijuana
 Regulation and Taxation Act".
         (2)        The purpose of this chapter is to:
         (a)        provide for legal possession and use of limited amounts of marijuana legal for adults 21 years
 of age or older;
         (b)        provide for the licensure and regulation of the cultivation, manufacture, production, distribution,
 transportation, and sale of marijuana and marijuana products;
         (c)        eliminate the illicit market for marijuana and marijuana products;
         (d)        prevent the manufacture and distribution of synthetic marijuana cannabinoid products;
         (e)        prevent the distribution of marijuana sold under this chapter to persons under 21 years of age;
         (f)        ensure the safety of marijuana and marijuana products;
         (g)        ensure the security of licensed premises;
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         (h)      establish reporting requirements for licensees;
         (i)      establish inspection requirements for licensees, including data collection on energy use,
 chemical use, water use, and packaging waste to ensure a clean and healthy environment;
         (j)      provide for the testing of marijuana and marijuana products by licensed testing laboratories;
         (k)      give local governments authority to allow for the operation of marijuana businesses in their
 community and establishing standards for the cultivation, manufacture, and sale of marijuana that protect the
 public health, safety, and welfare of residents within their jurisdictions;
         (l)      tax the sale of marijuana and marijuana products to provide compensation for the economic
 and social costs of marijuana;
         (m)      authorize courts to resentence persons who are currently serving sentences for acts that are
 permitted under this chapter or for which the penalty is reduced by this chapter and to redesignate or expunge
 those offenses from the criminal records of persons who have completed their sentences as set forth in this
 chapter; and
         (n)      preserve and protect Montana's well-established hemp industry by drawing a clear distinction
 between those participants and programs and the participants and programs associated with the marijuana
 industry.
         (3)      Marijuana and marijuana products are not agricultural products, and the cultivation, processing,
 manufacturing or selling of marijuana or marijuana products is not considered agriculture subject to regulation
 by the department of agriculture unless expressly provided."
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         Section 2. Section 16-12-102, MCA, is amended to read:
         "16-12-102.    Definitions. As used in this chapter, the following definitions apply:
         (1)      "Adult-use dispensary" means a licensed premises from which a person licensed by the
 department may:
         (a)      obtain marijuana or marijuana products from a licensed cultivator, manufacturer, dispensary, or
 other licensee approved under this chapter; and
         (b)      sell marijuana or marijuana products to registered cardholders, adults that are 21 years of age
 or older, or both.
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         (2)      "Affiliate" means a person that directly, or indirectly through one or more intermediaries,
 controls or is controlled by, or is under common control with, another person.
         (3)      "Beneficial owner of", "beneficial ownership of", or "beneficially owns an" is determined in
 accordance with section 13(d) of the federal Securities and Exchange Act of 1934, as amended.
         (4)      "Canopy" means the total amount of square footage dedicated to live plant production at a
 licensed premises consisting of the area of the floor, platform, or means of support or suspension of the plant.
         (5)      "Consumer" means a person 21 years of age or older who obtains or possesses marijuana or
 marijuana products for personal use from a licensed dispensary but not for resale.
         (6)      "Control", "controls", "controlled", "controlling", "controlled by", and "under common control
 with" mean the possession, direct or indirect, of the power to direct or cause the direction of the management or
 policies of a person, whether through the ownership of voting owner's interests, by contract, or otherwise.
         (7)      "Controlling beneficial owner" means a person that satisfies one or more of the following:
         (a)      is a natural person, an entity that is organized under the laws of and for which its principal
 place of business is located in one of the states or territories of the United States or District of Columbia, or a
 publicly traded corporation, and:
         (i)      acting alone or acting in concert, owns or acquires beneficial ownership of 5% or more of the
 owner's interest of a marijuana business;
         (ii)     is an affiliate that controls a marijuana business and includes, without limitation, any manager;
 or
         (iii)    is otherwise in a position to control the marijuana business; or
         (b)      is a qualified institutional investor acting alone or acting in concert that owns or acquires
 beneficial ownership of more than 15% of the owner's interest of a marijuana business.
         (8)      "Correctional facility or program" means a facility or program that is described in 53-1-202(2) or
 (3) and to which an individual may be ordered by any court of competent jurisdiction.
         (9)      "Cultivator" means a person licensed by the department to:
         (a)      plant, cultivate, grow, harvest, and dry marijuana; and
         (b)      package and relabel marijuana produced at the location in a natural or naturally dried form that
 has not been converted, concentrated, or compounded for sale through a licensed dispensary.
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         (10)     "Debilitating medical condition" means:
         (a)      cancer, glaucoma, positive status for human immunodeficiency virus, or acquired immune
 deficiency syndrome when the condition or disease results in symptoms that seriously and adversely affect the
 patient's health status;
         (b)      cachexia or wasting syndrome;
         (c)      severe chronic pain that is a persistent pain of severe intensity that significantly interferes with
 daily activities as documented by the patient's treating physician;
         (d)      intractable nausea or vomiting;
         (e)      epilepsy or an intractable seizure disorder;
         (f)      multiple sclerosis;
         (g)      Crohn's disease;
         (h)      painful peripheral neuropathy;
         (i)      a central nervous system disorder resulting in chronic, painful spasticity or muscle spasms;
         (j)      admittance into hospice care in accordance with rules adopted by the department; or
         (k)      posttraumatic stress disorder.
         (11)     "Department" means the department of revenue provided for in 2-15-1301.
         (12)     (a) "Employee" means an individual employed to do something for the benefit of an employer.
         (b)      The term includes a manager, agent, or director of a partnership, association, company,
 corporation, limited liability company, or organization.
         (c)      The term does not include a third party with whom a licensee has a contractual relationship.
         (13)     (a) "Financial interest" means a legal or beneficial interest that entitles the holder, directly or
 indirectly through a business, an investment, or a spouse, parent, or child relationship, to 5% or more of the net
 profits or net worth of the entity in which the interest is held.
         (b)      The term does not include interest held by a bank or licensed lending institution or a security
 interest, lien, or encumbrance but does include holders of private loans or convertible securities.
         (14)     "Former medical marijuana licensee" means a person that was licensed by or had an
 application for licensure pending with the department of public health and human services to provide marijuana
 to individuals with debilitating medical conditions on April 27, 2021.
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         (15)     (a) "Indoor cultivation facility" means an enclosed area used to grow live plants that is within a
 permanent structure using artificial light exclusively or to supplement natural sunlight.
         (b)      The term may include:
         (i)      a greenhouse; or
         (ii)     a similar structure that protects the plants from variable temperature, precipitation, and wind.
         (16)     "Licensed premises" means all locations related to, or associated with, a specific license that is
 authorized under this chapter and includes all enclosed public and private areas at the location that are used in
 the business operated pursuant to a license, including offices, kitchens, restrooms, and storerooms.
         (17)     "Licensee" means a person holding a state license issued pursuant to this chapter.
         (18)     "Local government" means a county, a consolidated government, or an incorporated city or
 town.
         (19)     "Manufacturer" means a person licensed by the department to convert or compound marijuana
 into marijuana products, marijuana concentrates, or marijuana extracts and package, repackage, label, or
 relabel marijuana products as allowed under this chapter.
         (20)     (a) "Marijuana" means all plant material from the genus Cannabis containing
 tetrahydrocannabinol (THC) or seeds of the genus capable of germination.
         (b)      The term does not include hemp as provided in 80-18-101.
         (c)      The term does not include synthetic marijuana cannabinoid products.
         (d)      The term does not include a any drug approved by the United States food and drug
 administration pursuant to section 505 of the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. 301, et seq.
         (21)     "Marijuana business" means a cultivator, manufacturer, adult-use dispensary, medical
 marijuana dispensary, combined-use marijuana licensee, testing laboratory, marijuana transporter, or any other
 business or function that is licensed by the department under this chapter.
         (22)     "Marijuana concentrate" means any type of marijuana product consisting wholly or in part of the
 resin extracted from any part of the marijuana plant.
         (23)     "Marijuana derivative" means any mixture or preparation of the dried leaves, flowers, resin, or
 byproducts of the marijuana plant, including but not limited to marijuana concentrates and other marijuana
 products.
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         (24)     "Marijuana product" means a product that contains marijuana and is intended for use by a
 consumer. The term includes but is not limited to edible products, ointments, tinctures, marijuana derivatives,
 and marijuana concentrates, including concentrates intended for use by smoking or vaping.
         (25)     "Marijuana transporter" means a person that is licensed to transport marijuana and marijuana
 products from one marijuana business to another marijuana business, or to and from a testing laboratory, and
 to temporarily store the transported retail marijuana and retail marijuana products at its licensed premises, but
 is not authorized to sell marijuana or marijuana products to consumers under any circumstances.
         (26)     "Mature marijuana plant" means a harvestable marijuana plant.
         (27)     "Medical marijuana" means marijuana or marijuana products that are for sale solely to a
 cardholder who is registered under Title 16, chapter 12, part 5.
         (28)     "Medical marijuana dispensary" means the location from which a registered cardholder may
 obtain marijuana or marijuana products.
         (29)     "Outdoor cultivation" means live plants growing in an area exposed to natural sunlight and
 environmental conditions including variable temperature, precipitation, and wind.
         (30)     "Owner's interest" means the shares of stock in a corporation, a membership in a nonprofit
 corporation, a membership interest in a limited liability company, the interest of a member in a cooperative or in
 a limited cooperative association, a partnership interest in a limited partnership, a partnership interest in a
 partnership, and the interest of a member in a limited partnership association.
         (31)     "Paraphernalia" has the meaning provided for "drug paraphernalia" in 45-10-101.
         (32)     "Passive beneficial owner" means any person acquiring an owner's interest in a marijuana
 business that is not otherwise a controlling beneficial owner or in control.
         (33)     "Person" means an individual, partnership, association, company, corporation, limited liability
 company, or organization.
         (34)     "Qualified institutional investor" means:
         (a)      a bank or banking institution including any bank, trust company, member bank of the federal
 reserve system, bank and trust company, stock savings bank, or mutual savings bank that is organized and
 doing business under the laws of this state, any other state, or the laws of the United States;
         (b)      a bank holding company as defined in 32-1-109;
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         (c)      a company organized as an insurance company whose primary and predominant business
 activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies, and that is
 subject to regulation or oversight by the insurance department of the office of the state auditor or a similar
 agency of another state, or any receiver or similar official or any liquidating agent for such a company, in their
 capacity as such an insurance company;
         (d)      an investment company registered under section 8 of the federal Investment Company Act of
 1940, as amended;
         (e)      an employee benefit plan or pension fund subject to the federal Employee Retirement Income
 Security Act of 1974, excluding an employee benefit plan or pension fund sponsored by a licensee or an
 intermediary holding company licensee that directly or indirectly owns 10% or more of a licensee;
         (f)      a state or federal government pension plan; or
         (g)      any other entity identified by rule by the department.
         (35)     "Registered cardholder" or "cardholder" means a Montana resident with a debilitating medical
 condition who has received and maintains a valid registry identification card.
         (36)     "Registry identification card" means a document issued by the department pursuant to 16-12-
 503 that identifies an individual as a registered cardholder.
         (37)     (a) "Resident" means an individual who meets the requirements of 1-1-215.
         (b)      An individual is not considered a resident for the purposes of this chapter if the individual:
         (i)      claims residence in another state or country for any purpose; or
         (ii)     is an absentee property owner p