Bill Summary – FastDemocracy

Unofficial Draft Copy
****                                             As of: 11/25/2024, 09:35:34
69th Legislature 2025                            Drafter: Megan Moore, ****                                    LC 0307
                                                  **** BILL NO. ****
                                                INTRODUCED BY ****
  3
  A BILL FOR AN ACT ENTITLED: “AN ACT ***; AMENDING SECTIONS 16-12-102, 16-12-104, 16-12-105, 16-
  12-106, 16-12-108, 16-12-109, 16-12-110, 16-12-111, 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, 16-12-224, 16-12-301, 16-12-302, 16-12-310, 16-12-311,
  AND 16-12-312, MCA.”
  8
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
 10
          NEW SECTION. Section 1.        Law enforcement grants account. (1) There is a law enforcement
  grants account in the state special revenue fund established in 17-2-102. The account consists of money
  transferred to the account pursuant to 16-12-111(4)(a).
          (2)      Revenue in the account must be used for local grants to law enforcement as follows:
          (a)      $24,000 for each county to be distributed equally between each law enforcement agency within      Commented [MM1]: Possible definition: 7-32-401
  the county;
          (b)      the remainder distributed to each county based on the county's share of the state population.
 18
          (X)      Who distributes the money?
 20
          Section 2. Section 16-12-102, MCA, is amended to read:                                                     Commented [MM2]: Come back to this section at the
                                                                                                                          end
          "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.
                                                              -1-                                                LC 307
                                                   Unofficial Draft Copy
****                                               As of: 11/25/2024, 09:35:34
69th Legislature 2025                              Drafter: Megan Moore, ****                                       LC 0307
          (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.
                                                                -2-                                                     LC 307
                                                     Unofficial Draft Copy
****                                                As of: 11/25/2024, 09:35:34
69th Legislature 2025                               Drafter: Megan Moore, ****                                       LC 0307
          (10)     "Debilitating medical condition" means:                                                                 Commented [MM3]: Renumber
          (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.
                                                                  -3-                                                  LC 307
                                                   Unofficial Draft Copy
****                                              As of: 11/25/2024, 09:35:34
69th Legislature 2025                             Drafter: Megan Moore, ****                                      LC 0307
          (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.
                                                               -4-                                                  LC 307
                                                   Unofficial Draft Copy
****                                               As of: 11/25/2024, 09:35:34
69th Legislature 2025                              Drafter: Megan Moore, ****                                      LC 0307
          (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;
                                                               -5-                                                   LC 307
                                                   Unofficial Draft Copy
****                                               As of: 11/25/2024, 09:35:34
69th Legislature 2025                              Drafter: Megan Moore, ****                                      LC 0307
          (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 cannabinoids" has the meaning provided in 50-32-222 and includes any
  cannabinoids produced artificially, whether from chemical synthesis or biosynthesis using recombinant
  biological agents, including but not limited to yeast and algae.
          (40)     "Synthetic marijuana product" means marijuana or marijuana products that contain synthetic
  cannabinoids.
          (41)     "Testing laboratory" means a qualified person, licensed under this chapter that:
                                                               -6-                                                  LC 307
                                                      Unofficial Draft Copy
****                                                  As of: 11/25/2024, 09:35:34
69th Legislature 2025                                 Drafter: Megan Moore, ****                                    LC 0307
          (a)      provides testing of representative samples of marijuana and marijuana products; and
          (b)      provides information regarding the chemical composition and potency of a sample, as well as
  the presence of molds, pesticides, or other contaminants in a sample.
          (42)     (a) "Usable marijuana" means the dried leaves and flowers of the marijuana plant that are
  appropriate for the use of marijuana by an individual.
          (b)      The term does not include the seeds, stalks, and roots of the plant."