Bill Summary – FastDemocracy

67th Legislature                                                                                          HB 670.1
                                              HOUSE BILL NO. 670
                       INTRODUCED BY D. SKEES, A. REGIER, M. REGIER, B. TSCHIDA
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   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING LAWS RELATED TO THE REGULATION
   AND TAXATION OF MARIJUANA; TRANSFERRING AUTHORITY OVER THE LICENSING, CULTIVATION,
   AND SALE OF MEDICAL MARIJUANA TO THE DEPARTMENT OF REVENUE; CREATING A MARIJUANA
   REVENUE TRUST FUND; DIRECTING TWO-THIRDS OF ADULT-USE MARIJUANA REVENUE TO BE USED
   TO FUND THE PUBLIC RETIREMENT SYSTEMS; REQUIRING A LOCAL ELECTION TO PROHIBIT THE
   SALE OF ADULT-USE MARIJUANA TO BE HELD IN CONJUNCTION WITH A REGULAR LOCAL ELECTION;
   INCREASING THE MEDICAL MARIJUANA TAX RATE TO 5%; DECREASING THE ADULT-USE MARIJUANA
   TAX RATE TO 15%; ALLOWING MEDICAL MARIJUANA REVENUE TO BE USED FOR THE
   IMPLEMENTATION OF THE MONTANA MARIJUANA REGULATION AND TAXATION ACT; ALLOWING FOR
   ELECTRONIC ADVERTISING OF MARIJUANA; REPEALING REPORTING REQUIREMENTS FOR MEDICAL
   MARIJUANA REGISTRY CARDS; DECREASING THE AMOUNT OF MARIJUANA THAT A PROVIDER MAY
   PURCHASE AT WHOLESALE; REMOVING CERTAIN RESTRICTIONS AND REPORTING REQUIREMENTS
   FOR REGISTERED CARDHOLDERS CULTIVATING MARIJUANA FOR PERSONAL USE; REPEALING THE
   PAIN MANAGEMENT EDUCATION AND TREATMENT SPECIAL REVENUE ACCOUNT; PROVIDING A
   STATUTORY APPROPRIATION; PROVIDING RULEMAKING AUTHORITY; PROVIDING DEFINITIONS;
   AMENDING SECTIONS 5-5-227, 15-64-101, 15-64-102, 15-64-111, 16-12-101, 16-12-102, 16-12-103, 16-12-
   104, 16-12-105, 16-12-106, 16-12-107, 16-12-108, 16-12-109, 16-12-110, 16-12-112, 16-12-201, 16-12-202,
   16-12-203, 16-12-204, 16-12-205, 16-12-206, 16-12-207, 16-12-208, 16-12-209, 16-12-210, 16-12-211, 16-12-
   301, 16-12-302, 17-7-502, 18-7-101, 37-1-136, 37-1-316, 37-3-203, 39-2-210, 39-2-313, 39-71-407, 41-5-216,
   45-9-101, 45-9-102, 45-9-103, 45-9-110, 45-9-127, 45-9-203, 45-10-103, 45-10-107, 46-18-202, 50-46-303, 50-
   46-307, 50-46-319, 50-46-345, 53-21-1207, 61-11-101, AND 80-1-104, MCA; AMENDING SECTION 56,
   INITIATIVE NO. 190, APPROVED NOVEMBER 3, 2020; REPEALING SECTIONS 16-12-111, 16-12-401, 16-
   12-402, 16-12-403, 16-12-404, 16-12-405, 16-12-406, 16-12-407, 16-12-408, 50-46-301, 50-46-302, 50-46-
   303, 50-46-304, 50-46-305, 50-46-307, 50-46-308, 50-46-309, 50-46-310, 50-46-311, 50-46-312, 50-46-313,
   50-46-317, 50-46-318, 50-46-319, 50-46-320, 50-46-326, 50-46-327, 50-46-328, 50-46-329, 50-46-330, 50-46-
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   331, 50-46-332, 50-46-339, 50-46-340, 50-46-341, 50-46-342, 50-46-343, 50-46-344, 50-46-345, 50-46-346,
   AND 50-46-347, MCA; REPEALING SECTIONS 38, 39, 50, 52, AND 53, INITIATIVE MEASURE NO. 190,
   APPROVED NOVEMBER 3, 2020; AND PROVIDING EFFECTIVE DATES.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              NEW SECTION. Section 1.        Marijuana revenue trust fund -- interest retention. (1) There is a
   marijuana revenue trust fund within the permanent fund type. The trust fund is subject to legislative transfer and
   appropriation as provided in this section.
              (2)   One-third of all adult-use marijuana tax revenue received pursuant to 15-64-102(1)(b)(i) are
   deposited in the trust fund.
              (3)   The money must be used for purposes addressing the economic and social costs of marijuana
   cultivation, processing, and use as determined by the legislature.
              (4)   Interest and income earned on money in the trust fund must be retained within the trust fund
   except as provided in this section. Until the year 2023, if assets in the trust fund reach the following amounts,
   money may be appropriated by the legislature and used in the following amounts for the purposes specified in
   subsection (3):
              (a)   When the fund balance reaches $20 million, 50% of the interest earned may be appropriated.
              (b)   When the fund balance reaches $50 million, 60% of the interest earned may be appropriated.
              (c)   When the fund balance reaches $100 million, 80% of the interest earned may be appropriated.
              (d)   When the fund balance reaches $150 million, 90% of the interest earned may be appropriated.
              (5)   Appropriation of the principal balance of the fund may be authorized by a two-thirds vote of the
   members of each house of the legislature.
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              NEW SECTION. Section 2.        Marijuana revenue -- appropriation of revenue -- public pensions.
   Two-thirds of all adult-use marijuana tax revenue received pursuant to 15-64-102(1)(b)(i) is statutorily
   appropriated, as provided in 17-7-502, by July 1 each year to the public employee retirement systems as
   defined in 19-2-303 based on each system's share of total vested enrollees as determined by the most recent
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   actuarial valuation for the retirement systems completed pursuant to 19-2-405.
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              NEW SECTION. Section 3.          Medical marijuana state special revenue account. (1) There is a
   medical marijuana state special revenue account within the state special revenue fund established in 17-2-102.
              (2)   The account consists of:
              (a)   money deposited into the account pursuant to 16-12-112 and [section 17];
              (b)   the medical marijuana tax collected pursuant to Title 15, chapter 64, part 1; and
              (c)   civil penalties collected under [sections 5 through 17].
              (3)   Money in the account must be used by the department for the purpose of administering [sections 5
   through 17], the Montana Marijuana Regulation and Taxation Act, and the development and operation of the
   seed-to-sale tracking system provided for in 16-12-105.
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              NEW SECTION. Section 4.          Provider licensing fees -- sale of license. (1) Annual license fees for
   providers and marijuana-infused products providers are based on the volume of the provider's production of
   marijuana and are imposed based on the canopy licensure tiers in 16-12-105.
              (2)   A provider of both marijuana and marijuana-infused products is required to have only one canopy
   license.
              (3)   The fee required under this part may be imposed based only on the tier of licensure and may not
   be applied separately to each registered premises used for cultivation under the licensure level or each
   dispensary operated by a provider or marijuana-infused products provider.
              (4)   Money collected from license fees paid pursuant to this section must be deposited in the medical
   marijuana state special revenue account provided for in [section 3].
              (5)   The department shall grant a license transfer if the transferee meets the licensing requirements of
   this chapter. The department shall apply a fee of 1% of the fee for the license tier being transferred.
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              NEW SECTION. Section 5.          Purpose. The purpose of [sections 5 through 17] is to provide a
   regulatory system for providing marijuana for the use of individuals with debilitating medical conditions,
   including posttraumatic stress disorder, in order to alleviate the symptoms of the debilitating medical condition
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   that:
              (1)   allows individuals with debilitating medical conditions to purchase marijuana at the tax rate
   specified in 15-64-102(1)(b)(ii);
              (2)   provides for a registry of individuals with debilitating medical conditions entitled to purchase
   marijuana at the tax rate specified in 15-64-102(1)(b)(ii); and
              (3)   provides the process for obtaining a registry identification card.
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              NEW SECTION. Section 6.         Definitions. As used in [sections 5 through 17], the following definitions
   apply:
              (1)   "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.
              (2)   "Department" means the department of public health and human services provided for in 2-15-
   2201.
              (3)   "Marijuana" has the meaning provided in 16-12-102.
              (4)   "Marijuana concentrate" means any type of marijuana product consisting wholly or in part of the
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   resin extracted from any part of the marijuana plant.
              (5)   "Marijuana derivative" means any mixture or preparation of the dried leaves, flowers, resin, and
   byproducts of the marijuana plant, including but not limited to marijuana concentrates and marijuana-infused
   products.
              (6)   (a) "Marijuana-infused product" means a product that contains marijuana and is intended for use
   by a means other than smoking.
              (b)   The term includes but is not limited to edible products, ointments, and tinctures.
              (7)   "Marijuana-infused products provider" has the meaning provided in 16-12-102.
              (8)   "Person" means an individual, partnership, association, company, corporation, limited liability
   company, or organization.
              (9)   "Provider" has the meaning provided in 16-12-102.
              (10) "Referral physician" means an individual who:
              (a)   is licensed under Title 37, chapter 3; and
              (b)   is the physician to whom a patient's treating physician has referred the patient for physical
   examination and medical assessment.
              (11) "Registered cardholder" or "cardholder" means a Montana resident with a debilitating medical
   condition who has received and maintains a valid registry identification card.
              (12) "Registry identification card" means a document issued by the department pursuant to [section 7]
   that identifies an individual as a registered cardholder.
              (13) (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 part 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 the state.
              (14) "Standard of care" means, at a minimum, the following activities when undertaken in person or
   through the use of telemedicine by a patient's treating physician or referral physician if the treating physician or
   referral physician is providing written certification for a patient with a debilitating medical condition:
              (a)   obtaining the patient's medical history;
              (b)   performing a relevant and necessary physical examination;
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              (c)   reviewing prior treatment and treatment response for the debilitating medical condition;
              (d)   obtaining and reviewing any relevant and necessary diagnostic test results related to the
   debilitating medical condition;
              (e)   discussing with the patient and ensuring that the patient understands the advantages,
   disadvantages, alternatives, potential adverse effects, and expected response to the recommended treatment;
              (f)   monitoring the response to treatment and possible adverse effects; and
              (g)   creating and maintaining patient records that remain with the physician.
              (15) "Telemedicine" has the meaning provided in 33-22-138.
              (16) "Treating physician" means an individual who:
              (a)   is licensed under Title 37, chapter 3; and
              (b)   has a bona fide professional relationship with the individual applying to be a registered cardholder.
              (17) "Written certification" means a statement signed by a treating physician or referral physician that
   meets the requirements of [section 9] and is provided in a manner that meets the standard of care.
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              NEW SECTION. Section 7.         Medical marijuana registry -- department responsibilities -- issuance
   of cards -- confidentiality. (1) The department shall establish and maintain a registry of persons who receive
   registry identification cards under [sections 5 through 17].
              (2)   The department shall issue registry identification cards to Montana residents who have debilitating
   medical conditions and who submit applications meeting the requirements of [sections 5 through 17].
              (3)   An individual who obtains a registry identification card is authorized to purchase marijuana at the
   tax rate specified in 15-64-102(1)(b)(ii) up to the limit set forth in [section 11].
              (4)   (a) Registry identification cards issued pursuant to [sections 5 through 17] must:
              (i)   be laminated and produced on a material capable of lasting for the duration of the time period for
   which the card or license is valid;
              (ii) state the name, address, and date of birth of the registered cardholder;
              (iii) state the date of issuance and the expiration date of the registry identification card;
              (iv) contain a unique identification number; and
              (v)   contain other information that the department may specify by rule.
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              (b)   Except as provided in subsection (4)(c), in addition to complying with subsection (4)(a), registry
   identification cards issued pursuant to this part must:
              (i)   include a picture of the registered cardholder; and
              (ii) be capable of being used to track registered cardholder purchases.
              (c)   (i) The department shall issue a temporary registry identification card on receipt of an application.
   The cards are valid for 60 days and are exempt from the requirements of subsection (4)(b). Printing of the
   temporary registry identification cards is exempt from the provisions of Title 18, chapter 7.
              (ii) A card may be issued before an applicant's payment of the fee has cleared. The department shall
   cancel the temporary registry identification card after 60 days and may not issue a permanent registry
   identification card until the fee is paid.
              (5)   (a) The department or state laboratory, as applicable, shall review the information contained in an
   application or renewal submitted pursuant to this part and shall approve or deny an application or renewal
   within 30 days of receiving the application or renewal and all related application materials.
              (b)   If the department fails to act on a completed application within 30 days of receipt, the department
   shall refund the fee paid by an applicant for a registry identification card.
              (c)   Applications that are not processed within 30 days of receipt remain active until the department
   takes final action.
              (d)   The department shall issue a registry identification card within 5 days of approving an application
   or renewal.
              (6)   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.
              (7)   Registry identification cards expire 1 year after the date of issuance unless a physician has
   provided a written certification stating that a card is valid for a shorter period of time.
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