1. MEDICAL MARIHUANA OVERVIEW
DOUG MAINS and ROBIN SCHNEIDER

2. How did we get here?
November 4, 2008 – 63% of Michigan voters approve Ballot Initiative 1
August 23, 2011 – CoA issues opinion in State v McQueen
May 1, 2012 – Rep. Callton introduces HB 5580
February 8, 2013 – MSC issues opinion in State v McQueen
February 19, 2013 – Rep. Callton introduces HB 4271
July 11, 2013 – CoA issues opinion in People v Carruthers
October 29, 2013 – Rep. Kowall introduces HB 5104
December 12, 2013 – HB 4271 passes the House 95-14; HB 5104 passes the House 100-9
February 17, 2015 – Rep. Callton introduces HB 4209 and Rep. Lyons introduces HB 4210
August 18, 2015 – Rep. Kesto introduces HB 4827
October 7, 2015 – HB 4209 passes the House 95-11; HB 4210 passes the House 96-10; HB 4827 passes the House 99-7
September 8, 2016 – HB 4209 passes the Senate 25-12; HB 4210 passes the Senate 28-9; HB 4827 passes the Senate 27-10
September 22, 2016 – Governor Snyder signs HB 4209, HB 4210, and HB 4827
December 20, 2016 – Public Acts become effective

3. PA BOARD OVERVIEW
Creates the Medical Marihuana Licensing Board within LARA
Five members
Appointed by the Governor
One member appointed from list of three submitted by Speaker
One member appointed from list of three submitted by SML
No more than three members can be from one political party
Cannot have direct or indirect financial interest in facility or applicant
No felony convictions or convictions for misdemeanors involving drugs, dishonesty, theft or fraud
Four year terms, but one initial member will serve for two years and two initial members will serve for three years
May hire staff, including full-time executive director
Must hold at least two public meetings per year

4. Pa 281 - BOARD DUTIES Implement and administer the MMFLA
Make licensing determinations
Oversee the activities of licensed medical marihuana facilities
Work with LARA to promulgate administrative rules relating to the operation, health, and safety of marihuana facilities

5. Pa 281 - ADVISORY PANEL Medical Marihuana Facilities Advisory Panel
17 members appointed by Governor
Representatives from state departments, local units of government, law enforcement, and licensees
Must be appointed within three months of effective date
Must meet at least once within a month of appointment
Business conducted in accordance with OMA
Panel “may make recommendations to the board concerning promulgation of rules and, as requested by the board or the department, the administration, implementation, and enforcement of this act and the marihuana tracking act.”

6. Pa 281 - TIMELINE December 20, 2016 – Effective date of MMFLA
March 20, 2017 – Deadline for Advisory Panel to be appointed
April 19, 2017 – Advisory Panel must have met at least once
December 15, 2017 – Individuals can begin to apply for licensure

7. Pa PROTECTIONS
Licensees, as well as their agents, acting within scope of license and rules are not subject to marihuana-related criminal penalties, criminal or civil prosecutions, searches or inspections except as authorized under MMFLA, seizure of marihuana or property, or sanctions by a business or professional licensing board
Property owners are protected from owning, leasing, or permitting operation of facility on their property unless they are aware that licensee is violating the MMFLA
Patients and caregivers are not subject to prosecution or penalty for purchasing marihuana from a provisioning center
Certain acts regulating commercial entities do not apply to facilities

8. Pa 281 - LICENSES GENERALLY
Can begin applying for licenses December 15, 2017
Applicants must provide Board with general identifying information, including information on every person who has an ownership interest in the applicant, as well as criminal, licensing, and financial background information
Certain individuals are ineligible
Convicted of felony or released from incarceration for felony within 10 years
Convicted of drug-related felony within 10 years
Convicted of misdemeanor involving drugs, theft, dishonesty, or fraud within 5 years
Must notify the municipality where the applicant will operate that it is seeking a license within 10 days
Municipalities may limit number and type of facilities within jurisdiction
May charge annual licensing fee of up to $5,000

9. Pa municipalities
Municipalities must pass an ordinance opting in
Cities, villages, and townships may limit number and type of facilities within jurisdiction
Can adopt ordinances, including zoning, that do not interfere or conflict with statutory regulations for licensing facilities
No ordinances on purity or pricing
May charge annual licensing fee of up to $5,000
When a municipality receives notice that an individual applied for a license in that jurisdiction, must send a copy of the ordinance, a copy of zoning regulations, and a description of any ordinance or zoning violations within 90 days
License may not be transferred, sold, or purchased without municipal approval
Local police can inspect a facility at any time
Applicants must transmit annual financial statements to municipalities

10. Pa gROWERS
Cultivates, dries, trims, or cures and packages marihuana
Three classes:
Class A: Up to 500 plants
Class B: Up to 1,000 plants
Class C: Up to 1,500 plants
May only sell marihuana seeds or plants to other growers, and other forms of marihuana only to processors or provisioning centers
Until December 31, 2021, must employ an individual with at least two years’ experience as caregiver
May not employ or be a caregiver
May not have any interest in secure transporter or safety compliance facility
Must operate in agricultural, industrial, or unzoned area

11. Pa PROCESSORS
Extracts resin from marihuana or creates and packages marihuana-infused products
May purchase marihuana from a grower and sell processed marihuana or marihuana-infused products to provisioning centers
May not have any interest in secure transporter or safety compliance facility
Until December 31, 2021, must employ someone with at least two years’ experience as caregiver
No processor or employee may be caregiver

12. Pa 281 - PROVISIONING CENTERS
Sells or provides marihuana to patients and caregivers
May receive marihuana only from a grower or processor, and may only transfer marihuana to a patient, caregiver, or safety compliance facility
May not have an interest in a secure transporter or safety compliance facility
May only sell tested and labeled marihuana
Must enter all transactions and inventory into the seed-to-sale system
Cannot sell alcohol or tobacco, or allow consumption on the premises
Cannot allow a physician to conduct medical examinations on the premises for purposes of issuing certifications

13. Pa 281 - SAFETY COMPLIANCE FACILITIES
Tests marihuana for contaminants, as well as for THC and other cannabinoids
May receive marihuana from any facility or up to 2.5 ounces from a caregiver
May only return marihuana to a facility
Within one year of receiving a license, must be accredited by an entity approved by the Board, or have previously provided drug testing services to the State or the State’s court system and be a vendor in good standing
May not have an interest in any other facility
Must have at least one employee with an advanced medical or laboratory science degree
Must perform tests to ensure marihuana is reasonably free from chemical residues
Must use validated test methods to determine THC and other cannabinoid levels
Must perform tests to determine whether marihuana complies with microbial and mycotoxin content standards established by LARA
Must have a secondary lab space that is inaccessible to the public

14. Pa 281 - SECURE TRANSPORTERS
Stores and transports marihuana and money associated with the purchase and sale of marihuana between facilities
Cannot transport marihuana for a sale to a patient or caregiver
Cannot have interest in any other medical marihuana facility
May not be a registered patient or caregiver
All drivers must have Michigan chauffeur’s license
No employee can have been convicted of or released from incarceration for a felony within the past 5 years or have been convicted of a controlled substance- related misdemeanor within the same period
Each vehicle must be operated by a two-person crew and one person must remain with the vehicle at all times when transporting marihuana
For every trip involving the transport of marihuana, route plan and manifest must be entered into the statewide monitoring system, and copy must be kept in vehicle
All marihuana must be kept in sealed containers
Vehicles may not have marihuana-related markings

15. Pa tax
Tax – 3 percent on gross retail receipts of all provisioning centers
25 percent to municipalities where facilities are located, in proportion to the number of facilities
30 percent to counties where facilities are located, in proportion to the number of facilities
5 percent to county sheriffs in counties where facilities are located, in proportion to the number of facilities
30 percent to the State. Until 9/30/17 this money is deposited into the GF and, thereafter, into the First Responder Presumed Coverage Fund
5 percent to MCOLES
5 percent to MSP

16. Pa 281 - Regulatory assessment
Imposed upon all licensees except safety compliance facilities
Facilities pay a proportionate share of the total cost
Calculated annually to cover the following costs:
LARA’s costs to implement, administer, and enforce the Act
Costs of any medical marihuana-related legal costs incurred by the AG
Costs of any medical marihuana-related costs incurred by MSP
Costs of any medical marihuana-related costs incurred by the Department of Treasury
$500k to LARA to license substance use disorder programs
Amount equal to 5% of the amount paid to LARA, the AG, MSP, and the $500k to DHHS for substance abuse-related expenditures
Costs related to SFSTs
Administrative costs for MCOLES

17. Pa 283 - Marihuana-infused products
Defines “marihuana-infused product”
Amends definition of “usable marihuana” to include resin
Defines “plant” – “observable root formation” or “in growth material”
Extends Section 4 immunity to patients manufacturing infused products for their own use and to caregivers manufacturing for the use of their patients
Prohibits a patient to transfer infused products to anyone and caregivers from transferring to anyone other than their patients
Rebuttable presumption that weight listed on label or manifest is correct
Allows patients and caregivers to have a total of 2.5 ounces of usable marihuana and “usable marihuana equivalents”
One ounce of usable marihuana equals
16 ounces of marihuana-infused product in solid form
7 grams of marihuana-infused product in gaseous form
36 fluid ounces of marihuana-infused product in liquid form

18. Pa 283 - immunity Extends Section 4 immunity to:
Patients or caregivers purchasing marihuana from a licensed provisioning center
Patients or caregivers selling marihuana seeds or seedlings to a licensed grower
Caregivers transferring marihuana to a safety compliance facility

19. Pa 283 - Transporting infused products
Patient or caregiver shall not transport infused products in a motor vehicle
$250 civil infraction if violated
Exceptions:
If patient is transporting and infused product is in a sealed and labeled container that is carried in the trunk or, if the vehicle does not have a trunk, in an area that is not readily accessible from the interior of the vehicle
If caregiver is transporting and has a transportation manifest, and infused product is in a sealed and labeled container that is carried in the trunk or, if the vehicle does not have a trunk, in an area that is not readily accessible from the interior of the vehicle
If caregiver is transporting for patient who is his or her child, spouse, or parent and infused product is in a sealed and labeled container that is carried in the trunk or, if the vehicle does not have a trunk, in an area that is not readily accessible from the interior of the vehicle

20. Pa miscellaneous
Allows LARA to upload information on licensed patients and caregivers to seed-to-sale tracking system
Appropriates $8.5 million from Marihuana Registry Fund to LARA to set up licensing system
Prohibits the operation of snowmobiles and ORVs while under the influence of marihuana
Prohibits butane extraction in any public place, in a motor vehicle, in a residential structure, or in the curtilage of a residential structure
Prohibits butane extraction in a reckless manner
Parts of Act concerning Carruthers are retroactive

21. Pa 282 - Seed-to-sale tracking system
Establishes statewide seed-to-sale tracking system
Department must seek bids to operate and maintain system
PA 281 requires all licensees to adopt third party inventory control and tracking system that can interface with system
System will track all plants, products, packages, patient and caregiver purchase totals, waste, transfers, conversions, sales, and returns
Track all test results and allow for product recalls
Allow licensees to verify that patients or caregivers have valid cards and are within purchase limits
Provide LARA, Board, and law enforcement access to database necessary to enforce their roles under the MMFLA

22. Where do we go from here? LARA Rulemaking
Appointment of Board and Advisory Panel
Seed-to-Sale RFP
Local Ordinances
Pinconning
Clare
Webberville
Niles*
Buchanan*
Lapeer*