SB 602

SENATE BILL NO. 602
A bill to amend 2018 IL 1, entitled
"Michigan Regulation and Taxation of Marihuana
Act,"
by amending sections 3 and 8 (MCL 333.27953 and
333.27958), as amended by 2023 PA 166.
the people of the state of michigan enact:
Sec. 3. As used in this act:
(a) "Cannabis
regulatory agency" means the marijuana regulatory agency created under
Executive Reorganization Order No. 2019-2, MCL 333.27001, renamed the cannabis
regulatory agency under Executive Reorganization Order No. 2022-1, MCL
333.27002.
(b)
"Cultivate" means to propagate, breed, grow, harvest, dry, cure, or
separate parts of a marihuana plant by manual or mechanical means.
(c)
"Department" means the cannabis regulatory agency.
(d) "Indian
lands" means any of the following:
(i) All lands within the limits of an Indian
reservation.
(ii) Any lands title to which is either held
in trust by the United States for the benefit of any Indian tribe or individual
or held by any Indian tribe or individual subject to restriction by the United
States against alienation and over which an Indian tribe exercises governmental
power.
(e) "Indian
tribe" means any Indian tribe, band, nation, or other organized group or
community of Indians which is recognized as eligible by the United States
Secretary of the Interior for the special programs and services provided by the
United States to Indians because of their status as Indians, and is recognized
as possessing powers of self-government.
(f)
"Industrial hemp" means any of the following:
(i) A plant of the genus Cannabis,
whether growing or not, with a THC concentration of 0.3% or less on a
dry-weight basis.
(ii) A part of a plant of the genus Cannabis,
whether growing or not, with a THC concentration of 0.3% or less on a
dry-weight basis.
(iii) The seeds of a plant of the genus Cannabis
with a THC concentration of 0.3% or less on a dry-weight basis.
(iv) If it has a THC concentration of 0.3% or
less on a dry-weight basis, a compound, manufacture, derivative, mixture,
preparation, extract, cannabinoid, acid, salt, isomer, or salt of an isomer of
any of the following:
(A) A plant of the
genus Cannabis.
(B) A part of a
plant of the genus Cannabis.
(v) A product to which 1 of the following
applies:
(A) If the product
is intended for human or animal consumption, the product, in the form in which
it is intended for sale to a consumer, meets both of the following
requirements:
(I) Has a THC
concentration of 0.3% or less on a dry-weight or per volume basis.
(II) Contains a
total amount of THC that is less than or equal to the limit established by the
cannabis regulatory agency under section 8(1)(n).
(B) If the product
is not intended for human or animal consumption, the product meets both of the
following requirements:
(I) Contains a
substance listed in subparagraph (i), (ii), (iii), or (iv).
(II) Has a THC
concentration of 0.3% or less on a dry-weight basis.
(g)
"Licensee" means a person holding a state license.
(h)
"Marihuana" means any of the following:
(i) A plant of the genus Cannabis,
whether growing or not.
(ii) A part of a plant of the genus Cannabis,
whether growing or not.
(iii) The seeds of a plant of the genus Cannabis.
(iv) Marihuana concentrate.
(v) A compound, manufacture, salt,
derivative, mixture, extract, acid, isomer, salt of an isomer, or preparation
of any of the following:
(A) A plant of the
genus Cannabis.
(B) A part of a
plant of the genus Cannabis.
(C) The seeds of a
plant of the genus Cannabis.
(D) Marihuana
concentrate.
(vi) A marihuana-infused product.
(vii) A product with a THC concentration of
more than 0.3% on a dry-weight or per volume basis in the form in which it is
intended for sale to a consumer.
(viii) A product that is intended for human or
animal consumption and that contains, in the form in which it is intended for
sale to a consumer, a total amount of THC that is greater than the limit
established by the cannabis regulatory agency under section 8(1)(n).
(i) Except for
marihuana concentrate extracted from any of the following,
"marihuana" does not include any of the following:
(i) The mature stalks of a plant of the
genus Cannabis.
(ii) Fiber produced from the mature stalks of
a plant of the genus Cannabis.
(iii) Oil or cake made from the seeds of a
plant of the genus Cannabis.
(iv) A compound, manufacture, salt,
derivative, mixture, or preparation of the mature stalks of a plant of the
genus Cannabis.
(v) Industrial hemp.
(vi) An ingredient combined with marihuana to
prepare topical or oral administrations, food, drink, or other products.
(vii) A drug for which an application filed in
accordance with 21 USC 355 is approved by the Food and Drug Administration.
(j) "Marihuana
accessories" means any equipment, product, material, or combination of
equipment, products, or materials, that 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.
(k) "Marihuana
concentrate" means the resin extracted from any part of a plant of the
genus Cannabis.
(l) "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
cannabis regulatory agency.
(m) "Marihuana
grower" means a person licensed to cultivate marihuana and sell or
otherwise transfer marihuana to marihuana establishments.
(n)
"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.
(o) "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.
(p) "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.
(q) "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.
(r) "Marihuana
safety compliance facility" means a person licensed to test marihuana,
including certification for potency and the presence of contaminants.
(s) "Marihuana
secure transporter" means a person licensed to obtain marihuana from
marihuana establishments in order to transport marihuana to marihuana
establishments.
(t) "Marijuana
regulatory agency", unless the context dictates otherwise, means the
cannabis regulatory agency.
(u) "Municipal
license" means a license issued by a municipality pursuant to section 16
that allows a person to operate a marihuana establishment in that municipality.
(v)
"Municipality" means a city, village, or township.
(w)
"Person" means an individual, corporation, limited liability company,
partnership of any type, trust, or other legal entity.
(x)
"Process" or "processing" means to separate or otherwise
prepare parts of a marihuana plant and to compound, blend, extract, infuse, or
otherwise make or prepare marihuana concentrate or marihuana-infused products.
(y)
"Qualifying Indian tribe" means an Indian tribe that meets all of the
following conditions:
(i) The Indian tribe has entered into an
agreement with the cannabis regulatory agency under section 7(2)(b) that is in
effect.
(ii) The Indian tribe has entered into an
agreement with the department of treasury that is in effect and that does all
of the following:
(A) States that the
revenue collected from the tax or fee described in subparagraph (iii) is not state money, and requires that
this revenue be retained by and used as determined by only the Indian tribe, if
the marihuana subject to the tax or fee was grown and processed on only the
Indian tribe's Indian lands.
(B) States whether
the revenue collected from the tax or fee described in subparagraph (iii) from marihuana not described in
sub-subparagraph (A) is subject to revenue sharing between the Indian tribe and
this state and, if so, the details of the revenue sharing arrangement.
(iii) The Indian tribe imposes a tax or fee on
each sale or transfer of marihuana from a tribal marihuana business located in
the Indian tribe's Indian lands to a person other than a tribal marihuana
business or marihuana establishment. This subparagraph does not prohibit a
qualifying Indian tribe from imposing the tax or fee on sales or transfers of
marihuana that are not described in this subparagraph. The tax or fee must be
based on the sales price of the marihuana and the rate of the tax or fee must
be equal to or greater than the rate established under section 13.
(z) "State
license" means a license issued by the cannabis regulatory agency that
allows a person to operate a marihuana establishment.
(aa)
"THC" means any of the following:
(i) Tetrahydrocannabinolic acid.
(ii) Unless excluded by the cannabis
regulatory agency under section 8(2)(c), 8(2), a tetrahydrocannabinol, regardless of whether
it is artificially or naturally derived.
(iii) A tetrahydrocannabinol that is a
structural, optical, or geometric isomer of a tetrahydrocannabinol described in
subparagraph (ii).
(bb) "Tribal
marihuana business" means a business that meets all of the following
conditions:
(i) The business engages in the type of
activities licensed under this act.
(ii) The business is not a marihuana
establishment.
(iii) The business is wholly owned by a
qualifying Indian tribe, the enrolled members of a qualifying Indian tribe, or
a combination of a qualifying Indian tribe and the members of that qualifying
Indian tribe.
(iv) The business is located in this state
and in the Indian lands of the qualifying Indian tribe described in
subparagraph (iii).
(v) The business is subject to a tax or fee
described in subdivision (y)(iii).
(cc)
"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. 8. (1) The cannabis regulatory agency
shall promulgate rules to implement and administer this act that include all of
the following:
(a) Procedures for
issuing a state license pursuant to section 9 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. However, a prior conviction solely for a
marihuana-related offense must 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, but not limited to, all of the following:
(i) A maximum THC level for
marihuana-infused products.
(ii) A requirement that a representative
sample of marihuana be tested by a marihuana safety compliance facility.
(iii) A requirement that the amount of
marihuana or marihuana concentrate contained within a marihuana-infused product
be specified on the product label.
(iv) A requirement that all marihuana sold
through marihuana retailers and marihuana microbusinesses include on the
exterior of the marihuana packaging the following warning printed in clearly
legible type and surrounded by a continuous heavy line:
WARNING: USE BY
PREGNANT OR BREASTFEEDING WOMEN, OR BY
WOMEN PLANNING TO
BECOME PREGNANT, MAY RESULT IN FETAL
INJURY, PRETERM
BIRTH, LOW BIRTH WEIGHT, OR DEVELOPMENTAL
PROBLEMS FOR THE
CHILD.
(f) Security
requirements, including lighting, physical security, and alarm requirements,
and requirements for securely transporting marihuana between marihuana
establishments. The requirements described in this subdivision must 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.
(k) Penalties for
failure to comply with a rule promulgated pursuant to this section or for a
violation of this act by a licensee, including civil fines and suspension,
revocation, or restriction of a state license.
(l) Informational pamphlet standards for
marihuana retailers and marihuana microbusinesses, including, but not limited
to, a requirement to make available to every customer at the time of sale a
pamphlet measuring 3.5 inches by 5 inches that includes safety information
related to marihuana use by minors and the poison control hotline number.
(m) Procedures and
standards for approving an appointee to operate a marihuana establishment under
section 9a.
(n) A limit on the
total amount of THC that a product described in section 3(f)(v)(A) may contain.
(2) The cannabis
regulatory agency may promulgate rules to do any of the following:
(a) Provide for the
issuance of additional types or classes of state licenses to operate
marihuana-related businesses, including licenses that authorize any of the
following:
(i) Limited cultivation, processing,
transportation, delivery, storage, sale, or purchase of marihuana.
(ii) Consumption of marihuana within
designated areas.
(iii) Consumption of marihuana at special
events in limited areas and for a limited time.
(iv) Cultivation for purposes of propagation.
(v) Facilitation of scientific research or
education.
(b) Regulate the cultivation, processing, distribution, and
sale of industrial hemp.
(b) (c) Exclude
from the definition of THC in section 3 a tetrahydrocannabinol if, after the
cannabis regulatory agency makes findings with respect to each of the following
factors, the cannabis regulatory agency determines that the
tetrahydrocannabinol does not have a potential for abuse:
(i) The actual or relative potential for
abuse of the tetrahydrocannabinol.
(ii) The scientific evidence of the
tetrahydrocannabinol's pharmacological effect, if known.
(iii) The state of current scientific
knowledge regarding the tetrahydrocannabinol.
(iv) The history and current pattern of abuse
of the tetrahydrocannabinol.
(v) The scope, duration, and significance of
abuse of the tetrahydrocannabinol.
(vi) The tetrahydrocannabinol's risk to the
public health.
(vii) The potential of the
tetrahydrocannabinol to produce psychic or physiological dependence liability.
(3) The cannabis
regulatory agency shall not promulgate a rule that is unreasonably
impracticable or that does any of the following:
(a) Establishes a
limit on the number of any type of state license 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.
(4) A rule
promulgated under this act must be promulgated pursuant to the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Enacting section 1. This amendatory act does not take
effect unless Senate Bill No. 599 of the 103rd Legislature is enacted into law.