SENATE BILL No. 813

 

 

February 24, 2016, Introduced by Senator YOUNG and referred to the Committee on Judiciary.

 

 

 

     A bill to regulate and tax marihuana; to require registration

 

of marihuana establishments and provide for registration,

 

application, and renewal fees; to regulate growth, manufacture, and

 

retail sale of marihuana; to regulate marihuana testing, labeling,

 

and packaging for retail sale; to restrict marihuana possession,

 

sale, and use by individuals under the age of 21; to limit landlord

 

restrictions on marihuana in rental property; to impose an excise

 

tax and provide for distribution of the proceeds of that tax; to

 

require the promulgation of rules; and to provide sanctions for

 

violations of this act.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. (1) This act shall be known and may be cited as the

 

"nonmedical marihuana code".

 

     (2) In the interest of allowing law enforcement to focus on


violent and property crimes, generating revenue for education and

 

other public purposes, and individual freedom, the legislature

 

finds and declares that the use of marihuana should be legal for

 

individuals 21 years of age or older and taxed in a manner similar

 

to alcohol.

 

     (3) This act is intended to be complete within itself to

 

regulate the entire field of growth, manufacture, distribution,

 

retail sale, possession, and use of marihuana, other than medical

 

marihuana, and supersedes any conflicting law except a law

 

regulating marihuana for medical use.

 

     Sec. 2. As used in this act unless the context otherwise

 

requires:

 

     (a) "Consumer" means an individual 21 years of age or older

 

who purchases marihuana or marihuana products for personal use by

 

an individual 21 years of age or older, but not for resale.

 

     (b) "Department" means the department of licensing and

 

regulatory affairs or its successor agency.

 

     (c) "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 of any part of the plant, or per volume or weight

 

of marihuana product, or the combined percentage of delta-9

 

tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of

 

the plant cannabis, regardless of moisture content.

 

     (d) "Immature marihuana plant" means a marihuana plant that

 

has not flowered and does not have visible buds.

 

     (e) "Local regulatory authority" means the office or entity


designated to process marihuana establishment applications by a

 

municipality or, in reference to a location outside the boundaries

 

of a municipality, by a county.

 

     (f) "Locality" means a municipality or, in reference to a

 

location outside the boundaries of a municipality, a county.

 

     (g) "Marihuana" means any part of the plant of the genus

 

Cannabis; the seeds thereof; the resin extracted from any part of

 

the plant; and a compound, manufacture, salt, derivative, mixture,

 

or preparation of the plant, its seeds, or its resin, including

 

marihuana concentrate. Marihuana does not include hemp; the fiber

 

produced from the stalks; oil or cake made from the seeds of the

 

plant; sterilized seed of the plant that is incapable of

 

germination; or the weight of any other ingredient combined with

 

marihuana to prepare topical or oral administrations, food, drink,

 

or other product.

 

     (h) "Marihuana accessories" means any equipment, products, or

 

materials that are used, intended for use, or designed for use in

 

planting, propagating, cultivating, growing, harvesting,

 

composting, manufacturing, compounding, converting, producing,

 

processing, preparing, testing, analyzing, packaging, repackaging,

 

storing, vaporizing, or containing marihuana, or for ingesting,

 

inhaling, or otherwise introducing marihuana into the human body.

 

     (i) "Marihuana cultivation facility" means an entity

 

registered to cultivate, prepare, and package marihuana and to sell

 

marihuana to retail marihuana stores, to marihuana product

 

manufacturing facilities, to marihuana lounges, and to other

 

marihuana cultivation facilities, but not to consumers. A marihuana


cultivation facility shall not produce marihuana concentrates,

 

tinctures, extracts, or other marihuana products.

 

     (j) "Marihuana establishment" means a marihuana cultivation

 

facility, a marihuana lounge, a marihuana testing facility, a

 

marihuana product manufacturing facility, or a retail marihuana

 

store.

 

     (k) "Marihuana lounge" means an entity registered to sell

 

marihuana or marihuana products for on-site consumption by means

 

other than smoking.

 

     (l) "Marihuana product manufacturing facility" means an entity

 

registered to purchase marihuana; manufacture, prepare, and package

 

marihuana products; and sell marihuana and marihuana products to

 

other marihuana product manufacturing facilities and to retail

 

marihuana stores, but not to consumers.

 

     (m) "Marihuana products" means concentrated marihuana products

 

and marihuana products that comprise marihuana and other

 

ingredients and are intended for use or consumption, such as, but

 

not limited to, edible products, ointments, and tinctures.

 

     (n) "Marihuana testing facility" means an entity registered to

 

test marihuana for potency and contaminants.

 

     (o) "Possession limit" means the maximum amount of marihuana

 

that may be possessed at any 1 time by an individual over 21 years

 

of age and which does not exceed the total of the following:

 

     (i) For a resident of this state:

 

     (A) One ounce of marihuana, not more than 5 grams of which are

 

hashish.

 

     (B) Five marihuana plants.


     (C) Any additional marihuana produced by the individual's

 

marihuana plants, but any amount of marihuana in excess of 1 ounce

 

must be possessed in the same secure facility where the plants are

 

cultivated.

 

     (ii) For an individual who is not a resident of this state,

 

not more than 1/2 ounce of marihuana, including not more than 1

 

gram of hashish.

 

     (p) "Public place" means a place to which the general public

 

has access.

 

     (q) "Retail marihuana store" means an entity registered with

 

the department to purchase marihuana from marihuana cultivation

 

facilities and marihuana and marihuana products from marihuana

 

product manufacturing facilities and to sell marihuana and

 

marihuana products to consumers.

 

     (r) "Rule" means a rule promulgated under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (s) "Unreasonably impracticable" means that the measures

 

necessary to comply with the regulations require such a high

 

investment of risk, money, time, or any other resource or assets

 

that the operation of a marihuana establishment is not worth being

 

carried out in practice by a reasonably prudent businessperson.

 

     Sec. 3. Notwithstanding any other provision of law, except as

 

otherwise provided in this act, all of the following acts are not

 

unlawful and are not a criminal or civil offense under the law of

 

this state or the law of any political subdivision of this state

 

and are not a basis for seizure or forfeiture of assets under the

 

law of this state if performed by an individual 21 years of age or


older:

 

     (a) Possessing, consuming, growing, using, processing,

 

purchasing, or transporting an amount of marihuana that does not

 

exceed the possession limit.

 

     (b) Transferring 1 ounce or less of marihuana or not more than

 

6 immature marihuana plants to an individual who is 21 years of age

 

or older without remuneration.

 

     (c) Controlling property where actions that are described in

 

this section occur.

 

     (d) Assisting another individual who is 21 years of age or

 

older in any of the acts described in this section.

 

     Sec. 4. (1) A person who cultivates marihuana shall comply

 

with all of the following:

 

     (a) Cultivate marihuana plants in a location where the plants

 

are not subject to public view without the use of binoculars,

 

aircraft, or other optical aids, including view from another

 

private property.

 

     (b) Take reasonable precautions to ensure the plants are

 

secure from unauthorized access and access by an individual under

 

21 years of age. For purposes of illustration and not limitation,

 

cultivating marihuana in an enclosed, locked space for which an

 

individual under 21 years of age does not possess a key constitutes

 

reasonable precaution.

 

     (c) Cultivate only on property lawfully in possession of the

 

cultivator or with the consent of the person in lawful possession

 

of the property.

 

     (2) A person who violates this section is responsible for a


state civil infraction and may be ordered to pay a civil fine of

 

not more than $750.00.

 

     Sec. 5. An individual shall not smoke marihuana in a public

 

place. An individual who violates this section is responsible for a

 

state civil infraction and may be ordered to pay a civil fine of

 

not more than $100.00.

 

     Sec. 6. (1) An individual shall not consume marihuana while

 

operating or driving a motor vehicle, boat, vessel, aircraft, or

 

other motorized device used for transportation.

 

     (2) A violation of this section is punishable as follows:

 

     (a) For a first violation, a fine of not more than $200.00 or

 

driver license suspension for up to 6 months, or both.

 

     (b) For a second or subsequent violation, a fine of not more

 

than $500.00 or driver license suspension for not more than 1 year,

 

or both.

 

     Sec. 7. (1) An individual less than 21 years of age shall not

 

present or offer to a marihuana establishment or the marihuana

 

establishment's agent or employee any written or oral evidence of

 

age that is false, fraudulent, or not actually the individual's

 

own, for any of the following purposes:

 

     (a) Purchasing, attempting to purchase, or otherwise procuring

 

or attempting to procure marihuana.

 

     (b) Gaining access to a marihuana establishment.

 

     (2) An individual who violates this section is guilty of a

 

state civil infraction and may be ordered to pay a civil fine of

 

not more than $400.00.

 

     Sec. 8. (1) A person, other than a marihuana product


manufacturer complying with this act and department regulations,

 

shall not perform solvent-based extractions on marihuana using

 

solvents other than water or vegetable glycerin.

 

     (2) A person who violates this section is guilty of a felony

 

punishable by imprisonment for not more than 3 years or a fine of

 

not more than $5,000.00, or both.

 

     Sec. 9. (1) Notwithstanding any other provision of law, it is

 

not unlawful and not a criminal or civil offense under the law of

 

this state or the law of any political subdivision of this state

 

and not a basis for seizing or forfeiting assets under the law of

 

this state for an individual 21 years of age or older to

 

manufacture, possess, or purchase marihuana accessories, or to

 

distribute or sell marihuana accessories to an individual who is 21

 

years of age or older.

 

     (2) An individual who is 21 years of age or older may

 

manufacture, possess, and purchase marihuana accessories, and

 

distribute or sell marihuana accessories to an individual who is 21

 

years of age or older.

 

     Sec. 10. (1) Notwithstanding any other provision of law, the

 

following acts, if performed by a retail marihuana store with a

 

current, valid registration, or an individual 21 years of age or

 

older who is acting in his or her capacity as an owner, employee,

 

or agent of a retail marihuana store, are not a criminal or civil

 

offense under the law of this state or a basis for seizing or

 

forfeiting assets under the law of this state:

 

     (a) Possessing, displaying, storing, or transporting marihuana

 

or marihuana products.


     (b) Purchasing marihuana from a marihuana cultivation

 

facility.

 

     (c) Purchasing marihuana or marihuana products from a

 

marihuana product manufacturing facility.

 

     (d) Delivering or transferring marihuana or marihuana products

 

to a marihuana testing facility.

 

     (e) Delivering, distributing, or selling marihuana or

 

marihuana products to a consumer.

 

     (2) Notwithstanding any other provision of law, the following

 

acts, when performed by a marihuana lounge with a current, valid

 

registration, or an individual 21 years of age or older who is

 

acting in his or her capacity as an owner, employee, or agent of a

 

marihuana lounge, are not unlawful and are not a criminal or civil

 

offense under the law of this state or a basis for seizure or

 

forfeiture of assets under the law of this state:

 

     (a) Possessing, displaying, storing, or transporting marihuana

 

or marihuana products.

 

     (b) Purchasing marihuana from a marihuana cultivation

 

facility.

 

     (c) Purchasing marihuana or marihuana products from a

 

marihuana product manufacturing facility.

 

     (d) Delivering or transferring marihuana or marihuana products

 

to a marihuana testing facility.

 

     (e) Delivering, distributing, or selling marihuana or

 

marihuana products to consumers.

 

     (3) Notwithstanding any other provision of law, the following

 

acts, if performed by a marihuana cultivation facility with a


current, valid registration, or an individual 21 years of age or

 

older who is acting in his or her capacity as an owner, employee,

 

or agent of a marihuana cultivation facility are not unlawful, a

 

criminal or civil offense under the law of this state, or a basis

 

for seizing or forfeiting assets under the law of this state:

 

     (a) Cultivating, harvesting, processing, packaging,

 

transporting, displaying, storing, or possessing marihuana.

 

     (b) Delivering or transferring marihuana to a marihuana

 

testing facility.

 

     (c) Delivering, distributing, or selling marihuana to a

 

marihuana cultivation facility, a marihuana product manufacturing

 

facility, a marihuana lounge, or a retail marihuana store.

 

     (d) Receiving or purchasing marihuana from a marihuana

 

cultivation facility.

 

     (e) Receiving marihuana seeds or immature marihuana plants

 

from an individual 21 years of age or older.

 

     (4) Notwithstanding any other provision of law, the following

 

acts, if performed by a marihuana product manufacturing facility

 

with a current, valid registration, or an individual 21 years of

 

age or older who is acting in his or her capacity as an owner,

 

employee, or agent of a marihuana product manufacturing facility

 

are not unlawful, an offense under the law of this state, or a

 

basis for seizing or forfeiting assets under the law of this state:

 

     (a) Packaging, processing, transporting, manufacturing,

 

displaying, or possessing marihuana or marihuana products.

 

     (b) Delivering or transferring marihuana or marihuana products

 

to a marihuana testing facility.


     (c) Delivering or selling marihuana or marihuana products to a

 

retail marihuana store, a marihuana lounge, or a marihuana product

 

manufacturing facility.

 

     (d) Purchasing marihuana from a marihuana cultivation

 

facility.

 

     (e) Purchasing marihuana or marihuana products from a

 

marihuana product manufacturing facility.

 

     (5) Notwithstanding any other provision of law, the following

 

acts, if performed by a marihuana testing facility with a current,

 

valid registration, or an individual 21 years of age or older who

 

is acting in his or her capacity as an owner, employee, or agent of

 

a marihuana testing facility, are not unlawful, an offense under

 

the law of this state, or a basis for seizing or forfeiting assets

 

under the law of this state:

 

     (a) Possessing, cultivating, processing, repackaging, storing,

 

transporting, or displaying marihuana or marihuana products.

 

     (b) Receiving marihuana or marihuana products from a marihuana

 

establishment or an individual 21 years of age or older.

 

     (c) Returning marihuana or marihuana products to a marihuana

 

establishment, or an individual 21 years of age or older.

 

     (6) This section does not prohibit penalties for violating

 

this act or rules adopted by the department or localities as

 

authorized under this act.

 

     Sec. 11. (1) A marihuana establishment or an agent or staffer

 

of a marihuana establishment shall not sell, deliver, give,

 

transfer, or otherwise furnish marihuana to an individual under 21

 

years of age.


     (2) Except as otherwise provided in this section, in a

 

prosecution for selling, transferring, delivering, giving, or

 

otherwise furnishing marihuana, marihuana products, or marihuana

 

paraphernalia to an individual who is under 21 years of age, it is

 

a complete defense if both of the following conditions apply:

 

     (a) The person who sold, gave, or otherwise furnished

 

marihuana, marihuana products, or marihuana paraphernalia was a

 

retailer or marihuana lounge or was acting in his or her capacity

 

as an owner, employee, or agent of a retailer or marihuana lounge

 

at the time the marihuana, marihuana products, or marihuana

 

paraphernalia was sold, given, or otherwise furnished to the

 

individual.

 

     (b) Before selling, giving, or otherwise furnishing marihuana,

 

marihuana products, or marihuana paraphernalia to an individual who

 

is under 21 years of age, the individual who furnished the

 

marihuana or marihuana paraphernalia or an employee or agent of the

 

furnishing retailer was shown a document that appeared to be issued

 

by an agency of a federal, state, tribal, or foreign sovereign

 

government indicating that the individual to whom the marihuana or

 

marihuana paraphernalia was furnished was 21 years of age or older

 

at the time of the transaction.

 

     (3) The complete defense set forth in this section does not

 

apply if both of the following conditions are met:

 

     (a) The document that was shown to the individual who sold,

 

gave, or otherwise furnished the marihuana, marihuana products, or

 

marihuana paraphernalia was counterfeit, forged, altered, or issued

 

to an individual other than the individual to whom the marihuana,


marihuana products, or marihuana paraphernalia was sold, given, or

 

otherwise furnished.

 

     (b) Under the circumstances, a reasonable person would have

 

known or suspected that the document was counterfeit, forged,

 

altered, or issued to an individual other than the individual to

 

whom the marihuana, marihuana products, or marihuana paraphernalia

 

was sold, given, or otherwise furnished.

 

     Sec. 12. (1) Not later than 180 days after the effective date

 

of this act, the department shall promulgate rules necessary for

 

implementing this act. The rules must not prohibit the operation of

 

marihuana establishments, either expressly or through rules that

 

make their operation unreasonably impracticable. The rules shall

 

include all of the following:

 

     (a) Procedures for issuing, renewing, suspending, and revoking

 

a registration to operate a marihuana establishment, which

 

procedures are subject to the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (b) A schedule of application, registration, and renewal fees.

 

Each of the 3 types of fees must not exceed $5,000.00 adjusted

 

annually for inflation in the manner provided in section 21(3),

 

unless the department determines a greater fee is necessary to

 

carry out its responsibilities under this act.

 

     (c) Qualifications for registration that are directly and

 

demonstrably related to the operation of a marihuana establishment.

 

     (d) Security requirements including lighting, physical

 

security, video, and alarm requirements.

 

     (e) Requirements for the transportation and storage of


marihuana and marihuana products by marihuana establishments.

 

     (f) Employment and training requirements, including requiring

 

that each marihuana establishment create an identification badge

 

for each employee or agent.

 

     (g) Requirements designed to prevent the sale or diversion of

 

marihuana and marihuana products to individuals under the age of

 

21.

 

     (h) Standards for marihuana product manufacturers to determine

 

marihuana equivalency amounts for marihuana products.

 

     (i) Requirements for marihuana and marihuana products sold or

 

distributed by a marihuana establishment, including requirements

 

for marihuana products' labels and packaging to include all of the

 

following:

 

     (i) The length of time it typically takes for a product to

 

take effect.

 

     (ii) The marihuana equivalency of the product.

 

     (iii) The ingredients and possible allergens.

 

     (iv) A nutritional fact panel.

 

     (v) Packaging that is opaque, child resistant, and designed or

 

constructed to be significantly difficult for children under 5

 

years of age to open, but not difficult for normal adults to use

 

properly as described in the testing procedures in 16 CFR 1700.20

 

(1995).

 

     (vi) For an edible marihuana product, clear indication that it

 

contains marihuana through use of a standard symbol, if

 

practicable.

 

     (j) Health and safety regulations and standards applicable to


marihuana establishments for marihuana product manufacture and both

 

indoor and outdoor marihuana cultivation.

 

     (k) Restrictions on advertising, marketing, and signage,

 

including, but not limited to, a prohibition on mass-market

 

campaigns that have a high likelihood of reaching individuals less

 

than 21 years of age.

 

     (l) Restrictions on marihuana and marihuana product display,

 

including restrictions to ensure that marihuana and marihuana

 

product displays are not visible to the general public from a

 

public right-of-way.

 

     (m) Restrictions or prohibitions on additives to marihuana and

 

marihuana-infused products, including, but not limited to, those

 

that are toxic, designed to make the product more addictive or more

 

appealing to children, or misleading to consumers. The restrictions

 

must not extend to common baking and cooking additives.

 

     (n) Restrictions on the use of pesticides that are injurious

 

to human health.

 

     (o) Regulations governing visits to cultivation facilities and

 

product manufacturers, including requirements for a marihuana

 

establishment to maintain a visitor log.

 

     (p) A definition of the amount of delta-9 tetrahydrocannabinol

 

that constitutes a single serving of or dose in a marihuana

 

product.

 

     (q) Safety standards for manufacturing marihuana extracts and

 

concentrates.

 

     (r) Requirements for educational materials to be disseminated

 

to consumers who purchase marihuana-infused products.


     (s) Requirements for random sample tests to ensure quality

 

control, including accurate potency labels for marihuana and

 

marihuana-infused products. The sampling must include tests for

 

residual solvents, poisons, or toxins; harmful chemicals; dangerous

 

molds or mildew; filth; harmful microbes such as E. coli or

 

salmonella; and pesticides.

 

     (t) Standards for operating testing laboratories, including

 

equipment requirements and personnel qualifications.

 

     (u) Civil fines for failure to comply with rules promulgated

 

under this act.

 

     (v) Procedures for assisting the department of treasury in

 

collecting taxes levied on marihuana cultivation facilities under

 

section 21.

 

     (2) To ensure that individual privacy is protected, the

 

department shall not require a consumer to provide a retail

 

marihuana store with personal information other than government-

 

issued identification to determine the consumer's age, and a retail

 

marihuana store shall not be required to acquire or record personal

 

information about consumers.

 

     Sec. 13. (1) A person shall not operate a marihuana

 

establishment unless the person is registered with the department

 

as provided in this act. To register, a person shall submit an

 

application to the department. The term of a registration is 1

 

year. An applicant shall not submit a renewal application more than

 

90 days before the applicant's registration expires.

 

     (2) The department shall begin accepting and processing

 

applications to operate a marihuana establishment 1 year after the


effective date of this act.

 

     (3) If the locality in which the applicant proposes to operate

 

the marihuana establishment has designated a local regulatory

 

authority, immediately upon receiving the application or renewal

 

application for a marihuana establishment registration, the

 

department shall forward a copy of the application and 1/2 of the

 

application fee to that local regulatory authority. That forwarded

 

application serves as the application for registration with the

 

locality.

 

     (4) Unless the department finds the applicant is not in

 

compliance with rules promulgated under section 12 or the

 

department is notified by the relevant locality that the applicant

 

is not in compliance with ordinances and rules adopted under

 

section 14 and in effect at the time of application, the department

 

shall issue an annual registration or renewal to the applicant

 

within 90 days after receiving the application.

 

     (5) If a locality has adopted a numerical limit on the number

 

of marihuana establishments under section 14 and a greater number

 

of applicants seek registrations, the department shall solicit and

 

consider input from the local regulatory authority as to the

 

locality's preference or preferences for registration.

 

     (6) The department shall notify the applicant in writing of

 

the specific reason for its denial of an application.

 

     (7) A marihuana establishment registration shall specify the

 

location where the marihuana establishment will operate. A separate

 

registration is required for each location at which a marihuana

 

establishment operates.


     (8) A marihuana establishment and the books and records

 

maintained and created by marihuana establishments are subject to

 

inspection by the department or an agent of the department.

 

     Sec. 14. (1) A marihuana lounge may operate only if the local

 

regulatory authority in the locality where it operates issues a

 

permit, license, or registration that expressly allows the

 

operation of the marihuana lounge.

 

     (2) A locality may prohibit any type of marihuana

 

establishment by ordinance or an initiated or referred measure;

 

however, an initiated or referred measure under this subsection

 

must be adopted at a general election.

 

     (3) A locality may enact an ordinance or regulation not in

 

conflict with this act or with rules promulgated under this act

 

that governs the time, place, manner, and number of marihuana

 

establishment operations, which may include civil fines for

 

violation of the ordinance or regulation.

 

     (4) A locality may designate a local regulatory authority that

 

is responsible for processing applications submitted for

 

registration to operate a marihuana establishment in the locality.

 

     (5) A locality may establish procedures for issuing,

 

suspending, or revoking a registration issued by the locality under

 

this section, consistent with the applicant's right to due process

 

of law.

 

     (6) A locality may establish a schedule of annual operating,

 

registration, and application fees for marihuana establishments.

 

     Sec. 15. This act does not require an employer to permit or

 

accommodate the use, consumption, possession, transfer, display,


transportation, sale, or growing of marihuana in the workplace and

 

does not limit an employer's policy restricting employee marihuana

 

use or prescribing employee discipline for being under the

 

influence of marihuana in the workplace.

 

     Sec. 16. This act does not authorize operating a motor vehicle

 

under the influence of marihuana or operating a motor vehicle while

 

impaired by marihuana or supersede laws related to operating a

 

motor vehicle under the influence of marihuana or operating a motor

 

vehicle while impaired by marihuana.

 

     Sec. 17. This act does not permit the transfer of marihuana,

 

with or without remuneration, to an individual under the age of 21

 

or allow an individual under the age of 21 to purchase, possess,

 

use, transport, grow, or consume marihuana.

 

     Sec. 18. (1) Except as provided in this section, this act does

 

not require an individual, corporation, or any other entity that

 

occupies, owns, or controls a property to allow the consumption,

 

cultivation, display, sale, or transfer of marihuana on or in that

 

property.

 

     (2) A landlord shall not prohibit the possession or

 

consumption of marihuana by nonsmoked means on residential property

 

unless 1 of the following circumstances applies:

 

     (a) The tenant is a roomer who is not leasing the entire

 

residential dwelling.

 

     (b) The residence is incidental to detention or the provision

 

of medical, geriatric, educational, counseling, religious, or

 

similar service.

 

     (c) The residence is a transitional housing facility.


     (d) Failing to prohibit marihuana possession or consumption

 

would violate federal law or regulations or cause the landlord to

 

lose a monetary or licensing-related benefit under federal law or

 

regulations.

 

     Sec. 19. A contract entered into by a registered marihuana

 

establishment or its employee or agent, or by another person, for

 

property to be used by a registered marihuana establishment, its

 

employees, or its agents under a valid registration, is enforceable

 

under the law of this state, even if cultivating, obtaining,

 

manufacturing, distributing, dispensing, transporting, selling,

 

possessing, or using marihuana or hemp is prohibited by federal

 

law.

 

     Sec. 20. The marihuana regulation revolving fund is

 

established in the state treasury and revenue from fees and civil

 

fines collected by or on behalf of the department under this act

 

shall be credited to the fund. The department is the administrator

 

of the fund for auditing purposes. Money in the fund is

 

continuously appropriated only for the costs of registering and

 

monitoring marihuana establishments and performing other activities

 

authorized under this act.

 

     Sec. 21. (1) An excise tax is imposed on the sale or transfer

 

of marihuana from a marihuana cultivation facility to a retail

 

marihuana store, marihuana lounge, or marihuana product

 

manufacturing facility at the following rates:

 

     (a) $50.00 per ounce of marihuana flowers.

 

     (b) $25.00 per immature marihuana plant.

 

     (c) $15.00 per ounce on marihuana other than marihuana flowers


or immature marihuana plants.

 

     (2) The tax rates in this section apply proportionately to

 

fractions of an ounce.

 

     (3) The state treasurer shall adjust the tax rate under this

 

section by an amount determined by the state treasurer at the end

 

of each calendar year to reflect the cumulative annual percentage

 

change in the consumer price index. As used in this subsection,

 

"consumer price index" means the most comprehensive index of

 

consumer prices available for this state from the Bureau of Labor

 

Statistics of the United States Department of Labor.

 

     (4) On the fifteenth day of each month, a marihuana

 

cultivation facility shall remit to the department of treasury the

 

excise taxes due on the marihuana that the marihuana cultivation

 

facility transferred or sold in the prior calendar month.

 

     Sec. 22. (1) The marihuana excise tax fund is created within

 

the state treasury.

 

     (2) The state treasurer may receive money generated by the

 

marihuana excise tax for deposit into the marihuana excise tax

 

fund. The state treasurer shall direct the investment of the fund.

 

The state treasurer shall credit to the fund interest and earnings

 

from fund investments.

 

     (3) Money in the fund at the close of the fiscal year shall

 

remain in the fund and shall not lapse to the general fund.

 

     (4) Money from the fund shall be distributed by the treasurer

 

and expended, upon appropriation, only as follows:

 

     (a) Not more than 10% of the total collected to the department

 

for the necessary expenses of implementing and enforcing this act.


     (b) The balance in the fund after the distribution under

 

subdivision (a) shall be distributed every 3 months as follows:

 

     (i) Thirty percent to the department of education.

 

     (ii) Ten percent to the department of health and human

 

services for use in evidence-based, voluntary programs for

 

treatment of alcohol, tobacco, and marihuana abuse.

 

     (iii) Ten percent to the department of community health for a

 

scientifically and medically accurate public education campaign to

 

educate youth and adults about the health and safety risks of

 

alcohol, tobacco, and marihuana.

 

     (d) Fifty percent to the general fund.

 

     Sec. 23. (1) This act does not limit any privilege or right of

 

a medical marihuana patient, primary caregiver, or medical

 

marihuana establishment under the Michigan medical marihuana act,

 

2008 IL 1, MCL 333.26421 to 333.26430.

 

     (2) This act does not prohibit the operation of a facility

 

licensed to distribute marihuana under any other law of this state.

 

     (3) Possession of 1 ounce or less of marihuana by an

 

individual under the age of 21 is a civil offense punishable by

 

forfeiture of the marihuana and completion of up to 4 hours of

 

instruction in a drug awareness program. The law enforcement agency

 

issuing the citation shall notify the parents or legal guardian of

 

any offender under the age of 18 of the offense and of available

 

drug awareness programs. An offender who fails to complete a drug

 

awareness program within 1 year after notice of the offense and

 

available programs is sent is subject to a civil fine of not more

 

than $300.00 or up to 40 hours of community service, or both.


     Enacting section 1. This act takes effect 90 days after the

 

date it is enacted into law.

 

     Enacting section 2. This act does not take effect unless

 

Senate Joint Resolution O                                  

 

                       of the 98th Legislature becomes a part of

 

the state constitution of 1963 as provided in section 1 of article

 

XII of the state constitution of 1963.