Sec. 1. This act shall be known and may be cited as the
Michigan Regulation and Taxation of Marihuana Act.
Sec. 2. The purpose of this act is to make marihuana legal
under state and local law for adults 21 years of age or older, to make
industrial hemp legal under state and local law, and to control the commercial
production and distribution of marihuana under a system that licenses,
regulates, and taxes the businesses involved. The intent is to prevent arrest
and penalty for personal possession and cultivation of marihuana by adults 21
years of age or older; remove the commercial production and distribution of
marihuana from the illicit market; prevent revenue generated from commerce in
marihuana from going to criminal enterprises or gangs; prevent the distribution
of marihuana to persons under 21 years of age; prevent the diversion of
marihuana to illicit markets; ensure the safety of marihuana and
marihuana-infused products; and ensure security of marihuana establishments. To
the fullest extent possible, this act shall be interpreted in accordance with
the purpose and intent set forth in this section.
Sec. 3. As used in this act:
(a) "Cultivate" means to propagate, breed, grow,
harvest, dry, cure, or separate parts of the marihuana plant by manual or mechanical
means.
(b) "Department" means the department of licensing
and regulatory affairs.
(c) "Industrial hemp" means a plant of the genus
cannabis and any part of that plant, whether growing or not, with a delta-9
tetrahydrocannabinol concentration that does not exceed 0.3% on a dry-weight
basis, or per volume or weight of marihuana-infused product, or the combined
percent of delta-9-tetrahydrocannabinol and tetrahydrocannabinolic acid in any
part of the plant of the genus cannabis regardless of moisture content.
(d) "Licensee" means a person holding a state
license.
(e) "Marihuana" means all parts of the plant of
the genus cannabis, growing or not; the seeds of the plant; the resin extracted
from any part of the plant; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant or its seeds or resin, including marihuana
concentrate and marihuana-infused products. For purposes of this act, marihuana
does not include:
(1) the mature stalks of the plant, fiber produced from the
stalks, oil or cake made from the seeds of the plant, any other compound,
manufacture, salt, derivative, mixture, or preparation of the mature stalks,
except the resin extracted from those stalks, fiber, oil, or cake, or any
sterilized seed of the plant that is incapable of germination;
(2) industrial hemp; or
(3) any other ingredient combined with marihuana to prepare
topical or oral administrations, food, drink, or other products. (f)
"Marihuana accessories" means any equipment, product, material, or
combination of equipment, products, or materials, which is specifically
designed for use in planting, propagating, cultivating, growing, harvesting,
manufacturing, compounding, converting, producing, processing, preparing,
testing, analyzing, packaging, repackaging, storing, containing, ingesting,
inhaling, or otherwise introducing marihuana into the human body.
(g) "Marihuana concentrate" means the resin
extracted from any part of the plant of the genus cannabis.
(h) "Marihuana establishment" means a marihuana
grower, marihuana safety compliance facility, marihuana processor, marihuana
microbusiness, marihuana retailer, marihuana secure transporter, or any other
type of marihuana-related business licensed by the department.
(i) "Marihuana grower" means a person licensed to
cultivate marihuana and sell or otherwise transfer marihuana to marihuana
establishments.
(j) "Marihuana-infused product" means a topical
formulation, tincture, beverage, edible substance, or similar product
containing marihuana and other ingredients and that is intended for human
consumption.
(k) "Marihuana microbusiness" means a person
licensed to cultivate not more than 150 marihuana plants; process and package
marihuana; and sell or otherwise transfer marihuana to individuals who are 21
years of age or older or to a marihuana safety compliance facility, but not to
other marihuana establishments.
(l) "Marihuana processor" means a person licensed
to obtain marihuana from marihuana establishments; process and package
marihuana; and sell or otherwise transfer marihuana to marihuana
establishments.
(m) "Marihuana retailer" means a person licensed
to obtain marihuana from marihuana establishments and to sell or otherwise
transfer marihuana to marihuana establishments and to individuals who are 21
years of age or older.
(n) "Marihuana secure transporter" means a person
licensed to obtain marihuana from marihuana establishments in order to
transport marihuana to marihuana establishments.
(o) "Marihuana safety compliance facility" means a
person licensed to test marihuana, including certification for potency and the
presence of contaminants.
(p) "Municipal license" means a license issued by
a municipality pursuant to section 16 of this act that allows a person to
operate a marihuana establishment in that municipality.
(q) "Municipality" means a city, village, or
township.
(r) "Person" means an individual, corporation,
limited liability company, partnership of any type, trust, or other legal
entity.
(s) "Process" or "Processing" means to
separate or otherwise prepare parts of the marihuana plant and to compound,
blend, extract, infuse, or otherwise make or prepare marihuana concentrate or
marihuana-infused products.
(t) "State license" means a license issued by the
department that allows a person to operate a marihuana establishment.
(u) "Unreasonably impracticable" means that the
measures necessary to comply with the rules or ordinances adopted pursuant to
this act subject licensees to unreasonable risk or require such a high
investment of money, time, or any other resource or asset that a reasonably
prudent businessperson would not operate the marihuana establishment.
Sec. 4. 1. This act does not authorize:
(a) operating, navigating, or being in physical control of
any motor vehicle, aircraft, snowmobile, off-road recreational vehicle, or
motorboat while under the influence of marihuana;
(b) transfer of marihuana or marihuana accessories to a
person under the age of 21;
(c) any person under the age of 21 to possess, consume,
purchase or otherwise obtain, cultivate, process, transport, or sell marihuana;
(d) separation of plant resin by butane extraction or
another method that utilizes a substance with a flashpoint below 100 degrees
Fahrenheit in any public place, motor vehicle, or within the curtilage of any
residential structure;
(e) consuming marihuana in a public place or smoking
marihuana where prohibited by the person who owns, occupies, or manages the
property, except for purposes of this subdivision a public place does not
include an area designated for consumption within a municipality that has
authorized consumption in designated areas that are not accessible to persons
under 21 years of age;
(f) cultivating marihuana plants if the plants are visible
from a public place without the use of binoculars, aircraft, or other optical
aids or outside of an enclosed area equipped with locks or other functioning
security devices that restrict access to the area;
(g) consuming marihuana while operating, navigating, or
being in physical control of any motor vehicle, aircraft, snowmobile, off-road
recreational vehicle, or motorboat, or smoking marihuana within the passenger
area of a vehicle upon a public way;
(h) possessing marihuana accessories or possessing or
consuming marihuana on the grounds of a public or private school where children
attend classes in preschool programs, kindergarten programs, or grades 1
through 12, in a school bus, or on the grounds of any correctional facility; or
(i) Possessing more than 2.5 ounces of marihuana within a
person's place of residence unless the excess marihuana is stored in a
container or area equipped with locks or other functioning security devices
that restrict access to the contents of the container or area.
2. This act does not limit any privileges, rights,
immunities, or defenses of a person as provided in the Michigan medical
marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430, the medical marihuana
facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, or any other
law of this state allowing for or regulating marihuana for medical use.
3. This act does not require an employer to permit or
accommodate conduct otherwise allowed by this act in any workplace or on the
employer's property. This act does not prohibit an employer from disciplining
an employee for violation of a workplace drug policy or for working while under
the influence of marihuana. This act does not prevent an employer from refusing
to hire, discharging, disciplining, or otherwise taking an adverse employment
action against a person with respect to hire, tenure, terms, conditions, or
privileges of employment because of that person's violation of a workplace drug
policy or because that person was working while under the influence of
marihuana.
4. This act allows a person to prohibit or otherwise
regulate the consumption, cultivation, distribution, processing, sale, or
display of marihuana and marihuana accessories on property the person owns,
occupies, or manages, except that a lease agreement may not prohibit a tenant
from lawfully possessing and consuming marihuana by means other than smoking.
5. All other laws inconsistent with this act do not apply to
conduct that is permitted by this act.
Sec. 5. 1. Notwithstanding any other law or provision of
this act, and except as otherwise provided in section 4 of this act, the
following acts by a person 21 years of age or older are not unlawful, are not
an offense, are not grounds for seizing or forfeiting property, are not grounds
for arrest, prosecution, or penalty in any manner, are not grounds for search
or inspection, and are not grounds to deny any other right or privilege:
(a) except as permitted by subdivision (b), possessing,
using or consuming, internally possessing, purchasing, transporting, or
processing 2.5 ounces or less of marihuana, except that not more than 15 grams
of marihuana may be in the form of marihuana concentrate;
(b) within the person's residence, possessing, storing, and
processing not more than 10 ounces of marihuana and any marihuana produced by
marihuana plants cultivated on the premises and cultivating not more than 12
marihuana plants for personal use, provided that no more than 12 marihuana
plants are possessed, cultivated, or processed on the premises at once;
(c) assisting another person who is 21 years of age or older
in any of the acts described in this section; and
(d) giving away or otherwise transferring without
remuneration up to 2.5 ounces of marihuana, except that not more than 15 grams
of marihuana may be in the form of marihuana concentrate, to a person 21 years
of age or older, as long as the transfer is not advertised or promoted to the
public.
2. Notwithstanding any other law or provision of this act,
except as otherwise provided in section 4 of this act, the use, manufacture,
possession, and purchase of marihuana accessories by a person 21 years of age
or older and the distribution or sale of marihuana accessories to a person 21
years of age or older is authorized, is not unlawful, is not an offense, is not
grounds for seizing or forfeiting property, is not grounds for arrest,
prosecution, or penalty in any manner, and is not grounds to deny any other
right or privilege.
3. A person shall not be denied custody of or visitation
with a minor for conduct that is permitted by this act, unless the person's
behavior is such that it creates an unreasonable danger to the minor that can
be clearly articulated and substantiated.
Sec. 6. 1. Except as provided in section 4, a municipality
may completely prohibit or limit the number of marihuana establishments within
its boundaries. Individuals may petition to initiate an ordinance to provide
for the number of marihuana establishments allowed within a municipality or to
completely prohibit marihuana establishments within a municipality, and such
ordinance shall be submitted to the electors of the municipality at the next
regular election when a petition is signed by qualified electors in the
municipality in a number greater than 5% of the votes cast for governor by
qualified electors in the municipality at the last gubernatorial election. A
petition under this subsection is subject to section 488 of the Michigan
election law, 1954 PA 116, MCL 168.488.
2. A municipality may adopt other ordinances that are not
unreasonably impracticable and do not conflict with this act or with any rule
promulgated pursuant to this act and that:
(a) establish reasonable restrictions on public signs
related to marihuana establishments;
(b) regulate the time, place, and manner of operation of
marihuana establishments and of the production, manufacture, sale, or display
of marihuana accessories;
(c) authorize the sale of marihuana for consumption in
designated areas that are not accessible to persons under 21 years of age, or
at special events in limited areas and for a limited time; and
(d) designate a violation of the ordinance and provide for a
penalty for that violation by a marihuana establishment, provided that such
violation is a civil infraction and such penalty is a civil fine of not more
than $500.
3. A municipality may adopt an ordinance requiring a
marihuana establishment with a physical location within the municipality to
obtain a municipal license, but may not impose qualifications for licensure
that conflict with this act or rules promulgated by the department.
4. A municipality may charge an annual fee of not more than
$5,000 to defray application, administrative, and enforcement costs associated
with the operation of the marihuana establishment in the municipality.
5. A municipality may not adopt an ordinance that restricts
the transportation of marihuana through the municipality or prohibits a marihuana
grower, a marihuana processor, and a marihuana retailer from operating within a
single facility or from operating at a location shared with a marihuana
facility operating pursuant to the medical marihuana facilities licensing act,
2016 PA 281, MCL 333.27101 to 333.27801.
Sec. 7. 1. The department is responsible for implementing
this act and has the powers and duties necessary to control the commercial
production and distribution of marihuana. The department shall employ personnel
and may contract with advisors and consultants as necessary to adequately
perform its duties. No person who is pecuniarily interested, directly or
indirectly, in any marihuana establishment may be an employee, advisor, or
consultant involved in the implementation, administration, or enforcement of
this act. An employee, advisor, or consultant of the department may not be
personally liable for any action at law for damages sustained by a person
because of an action performed or done in the performance of their duties in
the implementation, administration, or enforcement of this act. The department
of state police shall cooperate and assist the department in conducting
background investigations of applicants. Responsibilities of the department
include:
(a) promulgating rules pursuant to section 8 of this act
that are necessary to implement, administer, and enforce this act;
(b) granting or denying each application for licensure and
investigating each applicant to determine eligibility for licensure, including
conducting a background investigation on each person holding an ownership
interest in the applicant;
(c) ensuring compliance with this act and the rules
promulgated thereunder by marihuana establishments by performing investigations
of compliance and regular inspections of marihuana establishments and by taking
appropriate disciplinary action against a licensee, including prescribing civil
fines for violations of this act or rules and suspending, restricting, or
revoking a state license;
(d) holding at least 4 public meetings each calendar year
for the purpose of hearing complaints and receiving the views of the public
with respect to administration of this act;
(e) collecting fees for licensure and fines for violations
of this act or rules promulgated thereunder, depositing all fees collected in
the marihuana regulation fund established by section 14 of this act, and
remitting all fines collected to be deposited in the general fund; and
(f) submitting an annual report to the governor covering the
previous year, which report shall include the number of state licenses of each
class issued, demographic information on licensees, a description of
enforcement and disciplinary actions taken against licensees, and a statement
of revenues and expenses of the department related to the implementation,
administration, and enforcement of this act.
Sec. 8. 1. The department shall promulgate rules to
implement and administer this act pursuant to the administrative procedures act
of 1969, 1969 PA 306, MCL 24.201 to MCL 24.328, including:
(a) procedures for issuing a state license pursuant to
section 9 of this act and for renewing, suspending, and revoking a state
license;
(b) a schedule of fees in amounts not more than necessary to
pay for implementation, administration, and enforcement costs of this act and
that relate to the size of each licensee or the volume of business conducted by
the licensee;
(c) qualifications for licensure that are directly and
demonstrably related to the operation of a marihuana establishment, provided
that a prior conviction solely for a marihuana-related offense does not
disqualify an individual or otherwise affect eligibility for licensure, unless
the offense involved distribution of a controlled substance to a minor;
(d) requirements and standards for safe cultivation,
processing, and distribution of marihuana by marihuana establishments,
including health standards to ensure the safe preparation of marihuana-infused
products and prohibitions on pesticides that are not safe for use on marihuana;
(e) testing, packaging, and labeling standards, procedures,
and requirements for marihuana, including a maximum tetrahydrocannabinol level
for marihuana-infused products, a requirement that a representative sample of
marihuana be tested by a marihuana safety compliance facility, and a
requirement that the amount of marihuana or marihuana concentrate contained
within a marihuana-infused product be specified on the product label;
(f) security requirements, including lighting, physical
security, and alarm requirements, and requirements for securely transporting
marihuana between marihuana establishments, provided that such requirements do
not prohibit cultivation of marihuana outdoors or in greenhouses;
(g) record keeping requirements for marihuana establishments
and monitoring requirements to track the transfer of marihuana by licensees;
(h) requirements for the operation of marihuana secure
transporters to ensure that all marihuana establishments are properly serviced;
(i) reasonable restrictions on advertising, marketing, and
display of marihuana and marihuana establishments;
(j) a plan to promote and encourage participation in the
marihuana industry by people from communities that have been disproportionately
impacted by marihuana prohibition and enforcement and to positively impact
those communities; and
(k) penalties for failure to comply with any rule
promulgated pursuant to this section or for any violation of this act by a
licensee, including civil fines and suspension, revocation, or restriction of a
state license.
2. In furtherance of the intent of this act, the department
may promulgate rules to:
(a) provide for the issuance of additional types or classes
of state licenses to operate marihuana-related businesses, including licenses
that authorize only limited cultivation, processing, transportation, delivery,
storage, sale, or purchase of marihuana, licenses that authorize the
consumption of marihuana within designated areas, licenses that authorize the consumption
of marihuana at special events in limited areas and for a limited time,
licenses that authorize cultivation for purposes of propagation, and licenses
intended to facilitate scientific research or education; or
(b) regulate the cultivation, processing, distribution, and
sale of industrial hemp.
3. The department may not promulgate a rule that:
(a) establishes a limit on the number of any type of state
licenses that may be granted;
(b) requires a customer to provide a marihuana retailer with
identifying information other than identification to determine the customer's
age or requires the marihuana retailer to acquire or record personal
information about customers other than information typically required in a
retail transaction;
(c) prohibits a marihuana establishment from operating at a
shared location of a marihuana facility operating pursuant to the medical
marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, or
prohibits a marihuana grower, marihuana processor, or marihuana retailer from
operating within a single facility; or
(d) is unreasonably impracticable.
Sec. 9. 1. Each application for a state license must be
submitted to the department. Upon receipt of a complete application and
application fee, the department shall forward a copy of the application to the
municipality in which the marihuana establishment is to be located, determine
whether the applicant and the premises qualify for the state license and comply
with this act, and issue the appropriate state license or send the applicant a
notice of rejection setting forth specific reasons why the department did not
approve the state license application within 90 days.
2. The department shall issue the following state license
types: marihuana retailer; marihuana safety compliance facility; marihuana
secure transporter; marihuana processor; marihuana microbusiness; class A
marihuana grower authorizing cultivation of not more than 100 marihuana plants;
class B marihuana grower authorizing cultivation of not more than 500 marihuana
plants; and class C marihuana grower authorizing cultivation of not more than
2,000 marihuana plants.
3. Except as otherwise provided in this section, the
department shall approve a state license application and issue a state license
if:
(a) the applicant has submitted an application in compliance
with the rules promulgated by the department, is in compliance with this act
and the rules, and has paid the required fee;
(b) the municipality in which the proposed marihuana
establishment will be located does not notify the department that the proposed
marihuana establishment is not in compliance with an ordinance consistent with
section 6 of this act and in effect at the time of application;
(c) the property where the proposed marihuana establishment
is to be located is not within an area zoned exclusively for residential use
and is not within 1,000 feet of a pre-existing public or private school
providing education in kindergarten or any of grades 1 through 12, unless a
municipality adopts an ordinance that reduces this distance requirement;
(d) no person who holds an ownership interest in the
marihuana establishment applicant: (1) will hold an ownership interest in both
a marihuana safety compliance facility or in a marihuana secure transporter and
in a marihuana grower, a marihuana processor, a marihuana retailer, or a
marihuana microbusiness;
(2) will hold an ownership interest in both a marihuana
microbusiness and in a marihuana grower, a marihuana processor, a marihuana
retailer, a marihuana safety compliance facility, or a marihuana secure
transporter; and
(3) will hold an ownership interest in more than 5 marihuana
growers or in more than 1 marihuana microbusiness, except that the department
may approve a license application from a person who holds an ownership interest
in more than 5 marihuana growers or more than 1 marihuana microbusiness if,
after January 1, 2023, the department promulgates a rule authorizing an
individual to hold an ownership interest in more than 5 marihuana growers or in
more than 1 marihuana microbusiness.
4. If a municipality limits the number of marihuana
establishments that may be licensed in the municipality pursuant to section 6
of this act and that limit prevents the department from issuing a state license
to all applicants who meet the requirements of subsection 3 of this section,
the municipality shall decide among competing applications by a competitive
process intended to select applicants who are best suited to operate in
compliance with this act within the municipality.
5. All state licenses are effective for 1 year, unless the
department issues the state license for a longer term. A state license is
renewed upon receipt of a complete renewal application and a renewal fee from
any marihuana establishment in good standing.
6. The department shall begin accepting applications for
marihuana establishments within 12 months after the effective date of this act.
Except as otherwise provided in this section, for 24 months after the
department begins to receive applications for marihuana establishments, the
department may only accept applications for licensure: for a class A marihuana
grower or for a marihuana microbusiness, from persons who are residents of
Michigan; for a marihuana retailer, marihuana processor, class B marihuana
grower, class C marihuana grower, or a marihuana secure transporter, from
persons holding a state operating license pursuant to the medical marihuana facilities
licensing act, 2016 PA 281, MCL 333.27101 to 333.27801; and for a marihuana
safety compliance facility, from any applicant. One year after the department
begins to accept applications pursuant to this section, the department shall
begin accepting applications from any applicant if the department determines
that additional state licenses are necessary to minimize the illegal market for
marihuana in this state, to efficiently meet the demand for marihuana, or to
provide for reasonable access to marihuana in rural areas.
7. Information obtained from an applicant related to
licensure under this act is exempt from disclosure under the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246.
Sec. 10. 1. Notwithstanding any other law or provision of
this act, and except as otherwise provided in section 4 of this act or the
rules promulgated thereunder, the following acts are not unlawful, are not an
offense, are not grounds for seizing or forfeiting property, are not grounds
for arrest, prosecution, or penalty in any manner, are not grounds for search
or inspection except as authorized by this act, and are not grounds to deny any
other right or privilege:
(a) a marihuana grower or an agent acting on behalf of a
marihuana grower who is 21 years of age or older, cultivating not more than the
number of marihuana plants authorized by the state license class; possessing,
packaging, storing, or testing marihuana; acquiring marihuana seeds or
seedlings from a person who is 21 years of age or older; selling or otherwise
transferring, purchasing or otherwise obtaining, or transporting marihuana to
or from a marihuana establishment; or receiving compensation for goods or
services;
(b) a marihuana processor or agent acting on behalf of a
marihuana processor who is 21 years of age or older, possessing, processing,
packaging, storing, or testing marihuana; selling or otherwise transferring,
purchasing or otherwise obtaining, or transporting marihuana to or from a
marihuana establishment; or receiving compensation for goods or services;
(c) a marihuana secure transporter or an agent acting on
behalf of a marihuana secure transporter who is 21 years of age or older,
possessing or storing marihuana; transporting marihuana to or from a marihuana
establishment; or receiving compensation for services;
(d) a marihuana safety compliance facility or an agent
acting on behalf of a marihuana safety compliance facility who is 21 years of
age or older, testing, possessing, repackaging, or storing marihuana;
transferring, obtaining, or transporting marihuana to or from a marihuana
establishment; or receiving compensation for services;
(e) a marihuana retailer or an agent acting on behalf of a
marihuana retailer who is 21 years of age or older, possessing, storing, or
testing marihuana; selling or otherwise transferring, purchasing or otherwise
obtaining, or transporting marihuana to or from a marihuana establishment;
selling or otherwise transferring marihuana to a person 21 years of age or
older; or receiving compensation for goods or services; or
(f) a marihuana microbusiness or an agent acting on behalf
of a marihuana microbusiness who is 21 years of age or older, cultivating not
more than 150 marihuana plants; possessing, processing, packaging, storing, or
testing marihuana from marihuana plants cultivated on the premises; selling or
otherwise transferring marihuana cultivated or processed on the premises to a
person 21 years of age or older; or receiving compensation for goods or
services.
(g) leasing or otherwise allowing the use of property owned,
occupied, or managed for activities allowed under this act;
(h) enrolling or employing a person who engages in
marihuana-related activities allowed under this act;
(i) possessing, cultivating, processing, obtaining,
transferring, or transporting industrial hemp; or
(j) providing professional services to prospective or
licensed marihuana establishments related to activity under this act.
2. A person acting as an agent of a marihuana retailer who
sells or otherwise transfers marihuana or marihuana accessories to a person
under 21 years of age is not subject to arrest, prosecution, forfeiture of
property, disciplinary action by a professional licensing board, denial of any
right or privilege, or penalty in any manner, if the person reasonably verified
that the recipient appeared to be 21 years of age or older by means of
governmentissued photographic identification containing a date of birth, and
the person complied with any rules promulgated pursuant to this act.
3. It is the public policy of this state that contracts
related to the operation of marihuana establishments be enforceable.
Sec. 11. (a) A marihuana establishment may not allow
cultivation, processing, sale, or display of marihuana or marihuana accessories
to be visible from a public place outside of the marihuana establishment
without the use of binoculars, aircraft, or other optical aids.
(b) A marihuana establishment may not cultivate, process,
test, or store marihuana at any location other than a physical address approved
by the department and within an enclosed area that is secured in a manner that
prevents access by persons not permitted by the marihuana establishment to
access the area.
(c) A marihuana establishment shall secure every entrance to
the establishment so that access to areas containing marihuana is restricted to
employees and other persons permitted by the marihuana establishment to access
the area and to agents of the department or state and local law enforcement
officers and emergency personnel and shall secure its inventory and equipment
during and after operating hours to deter and prevent theft of marihuana and
marihuana accessories.
(d) No marihuana establishment may refuse representatives of
the department the right during the hours of operation to inspect the licensed
premises or to audit the books and records of the marihuana establishment.
(e) No marihuana establishment may allow a person under 21
years of age to volunteer or work for the marihuana establishment.
(f) No marihuana establishment may sell or otherwise
transfer marihuana that was not produced, distributed, and taxed in compliance
with this act.
(g) A marihuana grower, marihuana retailer, marihuana
processor, marihuana microbusiness, or marihuana testing facility or agents
acting on their behalf may not transport more than 15 ounces of marihuana or
more than 60 grams of marihuana concentrate at one time.
(h) A marihuana secure transporter may not hold title to
marihuana.
(i) No marihuana processor may process and no marihuana
retailer may sell edible marihuana-infused candy in shapes or packages that are
attractive to children or that are easily confused with commercially sold candy
that does not contain marihuana.
(j) No marihuana retailer may sell or otherwise transfer
marihuana that is not contained in an opaque, resealable, child-resistant
package designed to be significantly difficult for children under 5 years of
age to open and not difficult for normal adults to use properly as defined by 16
C.F.R. 1700.20 (1995), unless the marihuana is transferred for consumption on
the premises where sold.
(k) No marihuana establishment may sell or otherwise
transfer tobacco.
Sec. 12. In computing net income for marihuana
establishments, deductions from state taxes are allowed for all the ordinary
and necessary expenses paid or incurred during the taxable year in carrying out
a trade or business.
Sec. 13. 1. In addition to all other taxes, an excise tax is
imposed on each marihuana retailer and on each marihuana microbusiness at the
rate of 10% of the sales price for marihuana sold or otherwise transferred to
anyone other than a marihuana establishment.
2. Except as otherwise provided by a rule promulgated by the
department of treasury, a product subject to the tax imposed by this section
may not be bundled in a single transaction with a product or service that is
not subject to the tax imposed by this section.
3. The department of treasury shall administer the taxes
imposed under this act and may promulgate rules pursuant to the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to MCL 24.328 that prescribe a
method and manner for payment of the tax to ensure proper tax collection under
this act.
Sec. 14. 1. The marihuana regulation fund is created in the
state treasury. The department of treasury shall deposit all money collected
under section 13 of this act and the department shall deposit all fees
collected in the fund. The state treasurer shall direct the investment of the
fund and shall credit the fund interest and earnings from fund investments. The
department shall administer the fund for auditing purposes. Money in the fund
shall not lapse to the general fund.
2. Funds for the initial activities of the department to
implement this act shall be appropriated from the general fund. The department
shall repay any amount appropriated under this subsection from proceeds in the
fund.
3. The department shall expend money in the fund first for
the implementation, administration, and enforcement of this act, and second,
until 2022 or for at least two years, to provide $20 million annually to one or
more clinical trials that are approved by the United States food and drug
administration and sponsored by a non-profit organization or researcher within
an academic institution researching the efficacy of marihuana in treating the
medical conditions of United States armed services veterans and preventing
veteran suicide. Upon appropriation, unexpended balances must be allocated as
follows:
(a) 15% to municipalities in which a marihuana retail store
or a marihuana microbusiness is located, allocated in proportion to the number
of marihuana retail stores and marihuana microbusinesses within the
municipality;
(b) 15% to counties in which a marihuana retail store or a
marihuana microbusiness is located, allocated in proportion to the number of
marihuana retail stores and marihuana microbusinesses within the county;
(c) 35% to the school aid fund to be used for K-12
education; and
(d) 35% to the Michigan transportation fund to be used for
the repair and maintenance of roads and bridges.
Sec. 15. A person who commits any of the following acts, and
is not otherwise authorized by this act to conduct such activities, may be
punished only as provided in this section and is not subject to any other form
of punishment or disqualification, unless the person consents to another
disposition authorized by law:
1. Except for a person who engaged in conduct described in
sections 4(1)(a), 4(1)(b), 4(1)(c), 4(1)(d), 4(1)(g), or 4(1)(h), a person who
possesses not more than the amount of marihuana allowed by section 5,
cultivates not more than the amount of marihuana allowed by section 5, delivers
without receiving any remuneration to a person who is at least 21 years of age
not more than the amount of marihuana allowed by section 5, or possesses with
intent to deliver not more than the amount of marihuana allowed by section 5,
is responsible for a civil infraction and may be punished by a fine of not more
than $100 and forfeiture of the marihuana.
2. Except for a person who engaged in conduct described in
section 4, a person who possesses not more than twice the amount of marihuana
allowed by section 5, cultivates not more than twice the amount of marihuana
allowed by section 5, delivers without receiving any remuneration to a person
who is at least 21 years of age not more than twice the amount of marihuana
allowed by section 5, or possesses with intent to deliver not more than twice
the amount of marihuana allowed by section 5:
(a) for a first violation, is responsible for a civil
infraction and may be punished by a fine of not more than $500 and forfeiture
of the marihuana;
(b) for a second violation, is responsible for a civil
infraction and may be punished by a fine of not more than $1,000 and forfeiture
of the marihuana;
(c) for a third or subsequent violation, is guilty of a
misdemeanor and may be punished by a fine of not more than $2,000 and
forfeiture of the marihuana.
3. Except for a person who engaged in conduct described by
section 4(1)(a), 4(1)(d), or 4(1)(g), a person under 21 years of age who
possesses not more than 2.5 ounces of marihuana or who cultivates not more than
12 marihuana plants:
(a) for a first violation, is responsible for a civil
infraction and may be punished as follows:
(1) if the person is less than 18 years of age, by a fine of
not more than $100 or community service, forfeiture of the marihuana, and
completion of 4 hours of drug education or counseling; or
(2) if the person is at least 18 years of age, by a fine of
not more than $100 and forfeiture of the marihuana.
(b) for a second violation, is responsible for a civil
infraction and may be punished as follows:
(1) if the person is less than 18 years of age, by a fine of
not more than $500 or community service, forfeiture of the marihuana, and
completion of 8 hours of drug education or counseling; or
(2) if the person is at least 18 years of age, by a fine of
not more than $500 and forfeiture of the marihuana.
4. Except for a person who engaged in conduct described in
section 4, a person who possesses more than twice the amount of marihuana
allowed by section 5, cultivates more than twice the amount of marihuana
allowed by section 5, or delivers without receiving any remuneration to a
person who is at least 21 years of age more than twice the amount of marihuana
allowed by section 5, shall be responsible for a misdemeanor, but shall not be
subject to imprisonment unless the violation was habitual, willful, and for a
commercial purpose or the violation involved violence.
Sec. 16. 1. If the department does not timely promulgate
rules as required by section 8 of this act or accept or process applications in
accordance with section 9 of this act, beginning one year after the effective
date of this act, an applicant may submit an application for a marihuana
establishment directly to the municipality where the marihuana establishment
will be located. 2. If a marihuana establishment submits an application to a
municipality under this section, the municipality shall issue a municipal
license to the applicant within 90 days after receipt of the application unless
the municipality finds and notifies the applicant that the applicant is not in
compliance with an ordinance or rule adopted pursuant to this act.
3. If a municipality issues a municipal license pursuant to
this section:
(a) the municipality shall notify the department that the
municipal license has been issued;
(b) the municipal license has the same force and effect as a
state license; and
(c) the holder of the municipal license is not subject to
regulation or enforcement by the department during the municipal license term.
Sec. 17. This act shall be broadly construed to accomplish
its intent as stated in section 2 of this act. Nothing in this act purports to
supersede any applicable federal law, except where allowed by federal law. All
provisions of this act are self-executing. Any section of this act that is
found invalid as to any person or circumstances shall not affect the
application of any other section of this act that can be given full effect
without the invalid section or application
