SB-0433, As Passed Senate, June 14, 2017

SUBSTITUTE FOR

SENATE BILL NO. 433

A bill to amend 2016 PA 281, entitled

"Medical marihuana facilities licensing act,"

by amending section 402 (MCL 333.27402).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 402. (1) The board shall issue a license to an applicant

who submits a complete application and pays both the nonrefundable

application fee required under section 401(5) and the regulatory

assessment established by the board for the first year of

operation, if the board determines that the applicant is qualified

to receive a license under this act.

(2) An applicant is ineligible to receive a license if any of

the following circumstances exist:

(a) The applicant has been convicted of or released from

incarceration for a felony under the laws of this state, any other

state, or the United States within the past 10 years or has been

convicted of a controlled substance-related felony within the past

10 years.

(b) Within the past 5 years the applicant has been convicted

of a misdemeanor involving a controlled substance, theft,

dishonesty, or fraud in any state or been found responsible for

violating a local ordinance in any state involving a controlled

substance, dishonesty, theft, or fraud that substantially

corresponds to a misdemeanor in that state.

license under this act that contains false information.

(d) The applicant is a member of the board.

(e) The applicant fails to demonstrate the applicant's ability

to maintain adequate premises liability and casualty insurance for

its proposed marihuana facility.

(f) The applicant holds an elective office of a governmental

unit of this state, another state, or the federal government; is a

member of or employed by a regulatory body of a governmental unit

in this state, another state, or the federal government; or is

employed by a governmental unit of this state. This subdivision

does not apply to an elected officer of or employee of a federally

recognized Indian tribe or to an elected precinct delegate.

(g) The applicant, if an individual, has been a resident of

this state for less than a continuous 2-year period immediately

preceding the date of filing the application. The requirements in

this subdivision do not apply after June 30, 2018.

(h) The board determines that the applicant is not in

compliance with section 205(1).

(i) The applicant fails to meet other criteria established by

rule.

(3) In determining whether to grant a license to an applicant,

the board may also consider all of the following:

(a) The integrity, moral character, and reputation; personal

and business probity; financial ability and experience; and

responsibility or means to operate or maintain a marihuana facility

of the applicant and of any other person that meets either of the

following:

(i) Controls, directly or indirectly, the applicant.

(ii) Is controlled, directly or indirectly, by the applicant

or by a person who controls, directly or indirectly, the applicant.

(b) The financial ability of the applicant to purchase and

maintain adequate liability and casualty insurance.

capitalization to operate and maintain the proposed marihuana

facility.

(d) Whether the applicant has been indicted for, charged with,

arrested for, or convicted of, pled guilty or nolo contendere to,

forfeited bail concerning, or had expunged any relevant criminal

offense under the laws of any jurisdiction, either felony or

misdemeanor, not including traffic violations, regardless of

whether the offense has been expunged, pardoned, or reversed on

appeal or otherwise.

(e) Whether the applicant has filed, or had filed against it,

a proceeding for bankruptcy within the past 7 years.

(f) Whether the applicant has been served with a complaint or

other notice filed with any public body regarding payment of any

tax required under federal, state, or local law that has been

delinquent for 1 or more years.

(g) Whether the applicant has a history of noncompliance with

any regulatory requirements in this state or any other

jurisdiction.

(h) Whether at the time of application the applicant is a

defendant in litigation involving its business practices.

(i) Whether the applicant meets other standards in rules

applicable to the license category.

(4) Each applicant shall submit with its application, on forms

provided by the board, a passport quality photograph and shall

ensure that 1 set of fingerprints is submitted to the department of

state police for each person having any ownership interest in the

marihuana facility and each person who is an officer, director, or

managerial employee of the applicant, in order for the department

of state police to conduct a criminal history check on each person

and to forward each person's fingerprints to the Federal Bureau of

Investigation for a national criminal history check. ~~The department~~

~~may designate an entity or agent to collect the fingerprints, and~~

~~the applicant is responsible for the cost associated with the~~

~~fingerprint collection.~~The applicant shall submit with its

application each person's written consent to the criminal history

check described in this section and the submission of each person's

fingerprints to, and the inclusion of each person's fingerprints

in, the state and federal database systems described in subsection

(7).

(5) The fingerprints required under subsection (4) may be

taken by a law enforcement agency or any other person determined by

the department of state police to be qualified to take

fingerprints. The applicant shall submit a fingerprint processing

fee to the department in an amount required under section 3 of 1935

PA 120, MCL 28.273, and any costs imposed by the Federal Bureau of

Investigation.

(6) The department of state police shall conduct a criminal

history check on each person described in subsection (4) and shall

request the Federal Bureau of Investigation to make a determination

of the existence of any national criminal history pertaining to

each person. The department of state police shall provide the board

with a written report containing the criminal history record

information of each person who was the subject of the criminal

history check conducted under this section.

(7) All of the following apply concerning fingerprints

submitted to the department of state police under this section:

(a) The department of state police shall store and retain all

fingerprints submitted under this section in an automated

fingerprint identification system database that searches against

latent fingerprints, and provides for an automatic notification if

and when a subsequent fingerprint is submitted into the system that

matches a set of fingerprints previously submitted under this

section or if and when the criminal history of an individual whose

fingerprints are retained in the system is updated. Upon receiving

a notification, the department of state police shall immediately

notify the board. Information in the database maintained under this

subsection is confidential, is not subject to disclosure under the

freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, and

shall not be disclosed to any person except for purposes of this

act or for law enforcement purposes.

(b) The department of state police shall forward all

fingerprints submitted to it under this section to the Federal

Bureau of Investigation for submission of those fingerprints into

the FBI automatic notification system. This subdivision does not

apply until the department of state police is a participant in the

FBI automatic notification system. As used in this subdivision:

(i) "Automatic notification system" means a system that stores

and retains fingerprints, and that provides for an automatic

notification to a participant if and when a fingerprint is

submitted into the system that matches an individual whose

fingerprints are retained in the system or if and when the criminal

history of an individual whose fingerprints are retained in the

system is updated.

(ii) "FBI automatic notification system" means the automatic

notification system that is maintained by the Federal Bureau of

Investigation.

(8) ~~(5)~~ The board shall review all applications for licenses

and shall inform each applicant of the board's decision.

(9) ~~(6)~~ A license shall be issued for a 1-year period and is

renewable annually. Except as otherwise provided in this act, the

board shall renew a license if all of the following requirements

are met:

(a) The licensee applies to the board on a renewal form

provided by the board that requires information prescribed in

rules.

(b) The application is received by the board on or before the

expiration date of the current license.

603.

(d) The licensee meets the requirements of this act and any

other renewal requirements set forth in rules.

(10) ~~(7)~~ The department shall notify the licensee by mail or

electronic mail at the last known address on file with the board

advising of the time, procedure, and regulatory assessment under

section 603. The failure of the licensee to receive notice under

this subsection does not relieve the licensee of the responsibility

for renewing the license.

(11) ~~(8)~~ If a license renewal application is not submitted by

the license expiration date, the license may be renewed within 60

days after its expiration date upon application, payment of the

regulatory assessment under section 603, and satisfaction of any

renewal requirement and late fee set forth in rules. The licensee

may continue to operate during the 60 days after the license

expiration date if the license is renewed by the end of the 60-day

period.

(12) ~~(9)~~ License expiration does not terminate the board's

authority to impose sanctions on a licensee whose license has

expired.

(13) ~~(10)~~ In its decision on an application for renewal, the

board shall consider any specific written input it receives from an

individual or entity within the local unit of government in which

the applicant for renewal is located.

(14) ~~(11)~~ A licensee must consent in writing to inspections,

examinations, searches, and seizures that are permitted under this

act and must provide a handwriting exemplar, fingerprints,

photographs, and information as authorized in this act or by rules.

(15) ~~(12)~~ An applicant or licensee has a continuing duty to

provide information requested by the board and to cooperate in any

investigation, inquiry, or hearing conducted by the board.