Official Language

OFFICIAL LANGUAGE FOR THE BALLOT PROPOSAL

INITIATION OF LEGISLATION
An initiation of legislation to allow under state law the personal possession and use
of marihuana by persons 21 years of age or older; to provide for the lawful
cultivation and sale of marihuana and marihuana-infused products by persons 21
years of age or older; to permit the taxation of revenue derived from commercial
marihuana facilities and to require that any such taxes be used for the purposes of
education, public safety and public health; to permit the legislature to require
licensing of commercial marihuana facilities by establishing a Michigan Cannabis
Control Board, which board would be responsible for enforcement and
administration of this act, including the promulgation of administrative rules.
The People of the State of Michigan enact:
Short Title
Sec.1. This act shall be known and may be cited as the Michigan Cannabis Control
and Revenue Act.
Definitions
Sec.2. As used in this act:
(a) “Administrative procedures act” means the administrative procedures act
of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to
24.328 of the Michigan Compiled Laws.
(b) “Board” means the Michigan Cannabis Control Board to be created if the
legislature requires licenses for marihuana facilities.
(c) “Enclosed structure” means a building, room or other comparable
stationary and fully enclosed area equipped with secured locks that permit
access to a marihuana facility only by persons who may lawfully be on the
premises of such facility in accord with this act. Nothing in this definition
requires a marihuana facility to be locked during its business hours when an
agent of the marihuana facility is on the premises.
(d) “Marihuana” means all parts of the plant of the genus cannabis whether
growing or not, the seeds thereof, the resin extracted from any part of the
plant and every compound, manufacture, salt, derivative, mixture or
preparation of the plant, its seeds or its resin, including marihuana
concentrate. Marihuana does not include industrial hemp, nor does it include
fiber produced from the stalks, oil, or cake made from seeds of the plant or
the sterilized seed of the plant which is incapable of germination.
(e) “Marihuana accessories” means any equipment, products or materials of
any kind which are used, intended for use, or designed for use for ingesting,
inhaling, vaporizing or otherwise introducing marihuana or marihuanainfused
products into the human body.
(f) “Marihuana cultivation facility” means a facility exclusively for the
cultivation, preparation and packaging of marihuana or marihuana-infused
products, which marihuana or marihuana-infused products may be sold to
marihuana retail facilities and to other marihuana cultivation facilities, but
not to consumers.
(g) “Marihuana facility” means both marihuana cultivation facilities and
marihuana retail facilities.
(h) “Marihuana-infused products” means products containing marihuana and
any other lawful ingredients and that are intended for human consumption
or topical use, including, but not limited to, edible products such as cookies,
candies and butter, marihuana concentrates, sprays, oils, ointments and
tinctures. Marihuana-infused products shall not be considered a food for
purposes of the food law, Act No. 92 of the Public Acts of 2000, being sections
289.1101 to 289.8111 of the Michigan Compiled Laws.
(i) “Medical marihuana act” means Michigan Initiated Law 1 of 2008, being
sections 333.26421 to 333.26430 of the Michigan Compiled Laws.
(j) “Marihuana retail facility” means a retail establishment that only sells
marihuana or marihuana-infused products and marihuana accessories for
use by persons 21 years of age and older.
(k) “Unreasonably impracticable” means that the measures necessary to
comply with the administrative rules require such a high investment of risk,
money, time or other resource or asset that the operation of a marihuana
facility is not worthy of being carried out in practice by a reasonably prudent
businessperson.
Personal Use of Marihuana and Non-Commercial Production of Marihuana
Sec.3. (a) Marihuana and marihuana-infused products are hereby declared lawful
for persons 21 years of age or older to purchase, possess, transport, use and
share with any other person 21 years or older.
(b) It shall be lawful for persons 21 years of age or older to cultivate
marihuana in their own homes; provided, however, that regardless of the
number of residents living in a dwelling who are at least 21 years of age or
older, no more than two flowering marihuana plants may be present at any
given time in any one dwelling. Homegrown marihuana grown under this
provision may not be sold, but may be shared without charge with other
persons 21 years of age or older. Local municipalities may by ordinance
prohibit or regulate the cultivation of homegrown marihuana in single
family, multiple residential unit, or attached housing dwellings. Local
municipalities may by ordinance also permit up to a maximum of an
additional two flowering marihuana plants to be present in any single
dwelling. A municipality that elects to permit more than two flowering
marihuana plants to be grown in any one dwelling may also require a special
use permit, and impose a fee for granting such special use permit, as a
condition of authorizing possession of more than two flowering marihuana
plants in a single dwelling.
(c) Except as authorized by this act and the medical marihuana act, it shall be
unlawful to possess, sell, distribute or purchase marihuana or marihuanainfused
products.
(d) This act shall not permit possession or consumption of marihuana or
marihuana-infused products:
(1) in a school bus;
(2) on the grounds of any preschool, primary or secondary school;
(3) on the grounds of any child care facility;
(4) in any correctional facility; or
(5) on any form of public transportation.
(e) This act shall not permit consumption of marihuana or marihuanainfused
products in any public place.
(f) This act shall not permit operation, navigation or actual physical control
of any motor vehicle, aircraft or motorboat while under the influence of
marihuana or marihuana-infused products.
Commercial Marihuana Operations
Sec.4. (a) The commercial growth and cultivation of marihuana and preparation of
marihuana-infused products for sale within this state shall be lawful at
marihuana cultivation facilities. Any such marihuana cultivation facility must
be within an enclosed structure. A marihuana cultivation facility may be
established in any location in this state that is not zoned exclusively for
residential or commercial use.
(b) The sale of marihuana, marihuana-infused products and marihuana
accessories to individuals 21 years of age or older shall be lawful at
marihuana retail facilities. A marihuana retail facility may be established in
any location in this state with zoning that permits the operation of retail
businesses that sell products to customers.
(c) A marihuana facility may also manufacture or otherwise prepare
marihuana-infused products. Marihuana cultivation facilities may only sell
marihuana-infused products to marihuana retail facilities. Marihuana retail
facilities may only sell at retail marihuana-infused products obtained from a
marihuana cultivation facility or which are prepared by such marihuana
retail facility, itself. A marihuana retail facility may not knowingly sell
marihuana-infused products to any other marihuana retail facility.
Conditions and Limitations on Marihuana Facilities
Sec. 5. (a) No marihuana facility shall be located within 1,250 feet, measured from
property line to property line, of a preexisting primary or secondary school,
but this prohibition does not restrict the location of such facilities near
colleges or universities.
(b) A marihuana facility shall have a detailed security plan, including, but not
limited to, a security alarm system that is enabled when an agent of such
facility is not on-site.
(c) A marihuana facility shall not permit the consumption of marihuana or
marihuana-infused products on its premises.
(d) A marihuana facility shall not permit persons under the age of 21 to be on
the premises of the facility.
(e) No one who is under the age of 21 or who has been convicted of a felony
shall have a direct or indirect ownership interest in a marihuana facility or be
an officer or director of a marihuana facility. No person shall continue to hold
an ownership interest in, or serve as an officer or director of, a marihuana
facility upon conviction of a felony and exhaustion of any appeals.
(f) A marihuana facility shall not knowingly employ an individual who has
been convicted of a felony or who is under 21 years of age. A marihuana
facility shall perform a background check on an individual before he or she is
offered employment to verify that he or she has not been convicted of a
felony. The marihuana facility shall maintain records identifying each
individual employed by the facility and the date the required background
check was performed. The records for any such employee shall be
maintained for a minimum of three years after such person ceases to be
employed by the marihuana facility.
Taxation of Commercial Marihuana Revenue
Sec.6. (a) The legislature may establish a tax on the revenue derived from the sale
of marihuana, marihuana-infused products or marihuana accessories sold by
a marihuana facility. No such tax may be imposed on marihuana or
marihuana-infused products that are for medical use and grown or
distributed under the medical marihuana act.
(b) Any taxes paid by a marihuana facility shall be used for the purposes of
administration of this act, education, public safety and public health.
Licensing of Marihuana Facilities and the Michigan Cannabis Control Board
Sec.7. (a) If the legislature requires licensing of marihuana facilities, it shall
establish the Michigan Cannabis Control Board, which shall be responsible
for the licensing of marihuana facilities and the enforcement and
administration of this act.
(b) The Michigan Cannabis Control Board shall consist of five members.
Three members shall be appointed by the governor, one by the speaker of the House
and one by the Senate majority leader. The members shall have the following
qualifications:
(1) the members appointed by the governor shall have an agricultural
background, with at least one having a background in crop management;
(2) The members appointed by the speaker of the House and the Senate
majority leader, respectively, shall represent the general public.
(c) The legislature shall provide for staggered terms for the board members,
for the selection of successor members in the event of a board vacancy, for
the length of board terms and for the maximum time for which a person may
be a board member.
(d) Board members shall receive compensation of $30,000 annually, payable
monthly, in arrears, except no payment will be made to a board member for
any month in which he or she misses a scheduled meeting of the board.
(e) A majority of board members at any meeting shall constitute a quorum. A
majority of board members present at a meeting which has a quorum is
needed to take action on any matter.
(f) The board shall have the power pursuant to the administrative
procedures act to promulgate rules that are not unreasonably impracticable
concerning the licensing, including license fees if not established by the
legislature, and operations of marihuana facilities that are not inconsistent
with this act. Rules promulgated by the board shall not be unreasonably
impracticable, and may address the following:
(1) criteria for applicants seeking a license for a marihuana facility,
which criteria shall include integrity, personal and business probity,
financial ability, and ability to operate a marihuana facility;
(2) procedures for issuance of licenses for marihuana facilities, which
rules shall require separate licenses for marihuana cultivation
facilities and marihuana retail facilities;
(3) health and safety regulations governing the cultivation,
production, processing, preparation, handling and transportation of
marihuana and marihuana-infused products;
(4) testing, packaging and labeling of marihuana and marihuanainfused
products;
(5) stamping or other appropriate mechanism to ensure proper tax
collection if taxes are imposed on the sale of marihuana or marihuanainfused
products;
(6) restrictions on the advertising and display of marihuana and
marihuana-infused products to persons under the age of 21;
(7) civil penalties, suspension, or revocation of a license issued for a
marihuana facility for failure to comply with the act or any regulations
that are promulgated for the administration of the act, which rules
shall include the right to a contested hearing pursuant to the
administrative procedures act;
(8) the books and records to be created and maintained by licensees
and for inspection of such books and records;
(9) security requirements for marihuana facilities; and
(10) such other rules as are deemed reasonably necessary or
advisable and which are not inconsistent with the spirit of this act.
(g) All license applications for a marihuana facility shall be approved or
denied within a reasonable period of time.
Relationship of this Act to the Medical Marihuana Act
Sec.8. Nothing in this act shall be deemed to amend, alter or supersede the use,
possession, acquisition, cultivation, manufacture, delivery, internal possession or
transfer of marihuana for medical use that is undertaken in accord with the medical
marihuana act.
Effective Date for Operation of Marihuana Facilities
Sec.9. Marihuana facilities may commence operations under this act on January 1,
2018 without a license if the legislature has not required licensure of such facilities
by that date or if the Michigan Cannabis Control Board is not established and
operating by that date or has not promulgated rules under which marihuana
facilities may obtain licenses by that date. Nothing in this section prohibits the
imposition of licensing requirements on marihuana facilities or the establishment of
the board after January 1, 2018, provided, however, that any marihuana facility
lawfully operating in accord with this act on or after January 1, 2018, shall be
entitled to receive a marihuana cultivation facility license or marihuana retail
facility license, as applicable, upon compliance with any applicable licensing
application requirements that become effective after January 1, 2018, and such
marihuana facility’s commitment to operate in accord with any rules promulgated
by the board with respect to such facility.
Self-Executing, Conflicting Provisions and Enactment of Other Laws
Sec.10. All provisions of this act are self-executing except as specified herein, and
except where otherwise indicated by this act, shall supersede all conflicting state
and local laws. The legislature may pass laws implementing this act that are not in
conflict with its provisions. Nothing in this act purports to supersede any applicable
federal law.
Severability of Act
Sec.11. Any section of this act being held 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.
Sound Good To You?