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 MARIJUANA LAWS; REVISING THE
 DEFINITION OF THE "RETAIL PRICE" OF MARIJUANA FOR TAX PURPOSES; REVISING THE
 DEFINITIONS OF "CONTROLLING BENEFICIAL OWNER," "EMPLOYEE," AND "FINANCIAL INTEREST";
 REVISING LAWS RELATED TO A THIRD-PARTY CONTRACT; REMOVING PROBATIONARY LICENSING
 OPTIONS FOR MARIJUANA TESTING LABORATORIES; REVISING MARIJUANA HOTLINE REPORTING
 REQUIREMENTS; REVISING PROVISIONS FOR PROPERTY OWNER PERMISSIONS ON LICENSE
 RENEWALS; REVISING MARIJUANA MANUFACTURER LICENSING FEES; ALLOWING FOR A VARIANCE
 IN THE MEASUREMENT OF A MARIJUANA PRODUCT SOLD AS A CAPSULE, TINCTURE, TOPICAL
 PRODUCT, SUPPOSITORY, TRANSDERMAL PATCH, AND OTHER MARIJUANA PRODUCTS; AMENDING
 SECTIONS 15-64-101, 16-12-102, 16-12-104, 16-12-125, 16-12-203, 16-12-221, AND 16-12-224, MCA; AND
 PROVIDING EFFECTIVE DATES AND AN APPLICABILITY DATE.”
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 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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         Section 1. Section 15-64-101, MCA, is amended to read:
         "15-64-101.    Definitions. As used in this part, the following definitions apply:
         (1)      "Adult-use dispensary" has the meaning provided in 16-12-102.
         (2)      "Customer" means a person to whom a sale of marijuana or a marijuana product is made.
         (3)      "Department" means the department of revenue provided for in 2-15-1301.
         (4)      "Dispensary" means an adult-use dispensary or a medical marijuana dispensary.
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         (5)      "Licensee" means a licensee operating an adult-use dispensary or a medical marijuana
 dispensary.
         (6)      "Marijuana" has the meaning provided in 16-12-102.
         (7)      "Marijuana product" has the meaning provided in 16-12-102.
         (8)      "Medical marijuana dispensary" has the meaning provided in 16-12-102.
         (9)      "Person" means an individual, firm, partnership, corporation, association, company, committee,
 other group of persons, or other business entity, however formed.
         (10)     "Retail price" means the established price for which an adult-use dispensary or medical
 marijuana dispensary sells marijuana or a marijuana product to a purchaser before after any discount or
 reduction.
         (11)     "Sale" or "sell" means any transfer of marijuana or marijuana products for consideration,
 exchange, barter, gift, offer for sale, or distribution in any manner or by any means."
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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.
         (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
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 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)      (a) "Controlling beneficial owner" means, except as provided in subsection (7)(b), a person that
 satisfies one or more of the following:
         (i)      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:
         (A)      acting alone or acting in concert, owns or acquires beneficial ownership of 5% or more of the
 owner's interest of a marijuana business;
         (B)      is an affiliate that controls a marijuana business and includes, without limitation, any manager;
 or
         (C)      is otherwise in a position to control the marijuana business; or
         (ii)     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.
         (b)      The term does not include a person that has a third-party relationship to perform work for any
 aspect 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.
         (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;
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         (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 includes holders of private loans or convertible securities.
         (c)      The term does not include:
         (i)      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 ; or
         (ii)     a person that has a third-party relationship to perform work for any aspect of a marijuana
 business.
         (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 products.
         (d)      The term does not include a 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 paying property tax on property in Montana.
         (38)     "Seedling" means a marijuana plant that has no flowers and is less than 12 inches in height
 and 12 inches in diameter.
         (39)     "Synthetic cannabinoi