Clarifying Rules
[dropcap class=”kp-dropcap”]T[/dropcap]The Michigan Legislature recently passed a cleanup bill amending the Michigan Medical Marihuana Facilities Licensing Act in several ways. Effective after Jan. 30, the bill now has become Public Act 10 of 2018, amending Public Act 281 of 2016.
The bill provides for transfer from growers to other growers, and processors to other processors, and allows the testing labs—“safety compliance facilities” to receive cannabis from a caregiver for testing, as well as from the licensed growers and processors. It also provides that the labs may collect random testing samples from growers, processors and provisioning centers. Growers may sell plants to other growers transferring them only by means of a licensed secure transporter. Caregivers may sell seeds, seedlings or tissue cultures to a grower, with no requirement to use a secure transporter for those transfers. The new law adds definitions of the words like “cutting,” “seed,” “seedling” and “tissue culture.”
Transfer is allowed between co-located facilities (grower, processor or provisioning center) without using a secure transporter if the transfer uses only private property and provided that each transfer is entered into the statewide tracking system.
The act adds legal protection for any C.P.A. who engages in accounting work for an applicant or licensee who is in compliance with the facilities act or medical cannabis act. The protection covers criminal penalties under state or local law, civil prosecution, property seizure or professional sanction. Financial institutions receive the same protection from state and local penalties, prosecution, seizure or sanction. Violations of federal law currently still are not justified, excused or preempted by state law.
Cities have been relieved of the requirement to provide a copy of their applicable authorizing ordinances to the Michigan Department of Medical Marihuana Regulation. That provision has been replaced by a form to be signed by the clerk of the municipality attesting that the municipality has adopted an authorizing ordinance and describing any applicable zoning regulations. Annual renewal forms are authorized, which would include a description of any violations of the act, the administrative rules, or the Michigan Medical Marihuana Act and any changes to the ordinances.
The Board now is authorized to establish monthly purchasing limits for patients and caregivers, in addition to the daily limit of 2.5 ounces (or infused product equivalent) per patient.
Until the end of 2018, upon issuance of a license to a grower, they may transfer plants, seeds and seedlings from an individual formerly registered as a primary caregiver who is an active employee of the grower for a period of 30 days immediately following issuance of the license. Likewise, upon issuance of a license to a processor they may accept plants or usable cannabis under the same conditions.
The law made clear that secure transporter licensees may travel through any municipality, allying any fears of hostile local ordinances attempting to block such transport within their boundaries.
Finally, the new law modified the requirement that the members of the cannabis advisory panel already have licenses before being appointed. That requirement alone delayed some of the appointments pending licensing. Other members of the advisory panel were appointed months ago. Gov. Rick Snyder is set to appoint the remaining members by March 1 (after this story has been printed) with the Director of the Department to call the first meeting of the panel within one month of the panel being appointed, and with the panel meeting at least two times each year. The advisory panel is just that, and does not have the decision-making authority granted to the Medical Marihuana Licensing Board.
The Medical Marihuana Licensing Board meets again March 22 at 9 a.m. at the Michigan Library and Historical Center in Lansing, at which time the first facilities licenses may (or may not) be issued. Those engaging in operations under the temporary operations provisions have a certain deadline of June 15 when those temporary facilities licenses expire and full approval will have been decided. At that point, full compliance with all the laws and rules will be required, including precise and extensive testing, tracking and labeling requirements.
2018 is a watershed year in the growth of the licensed cannabis industry in Michigan. Things are getting interesting.
