Summary of Montana Cannabis Act 2017

Montana Cannabis Act 2017 Summary

A BILL FOR AN ACT ENTITLED: "AN ACT REQUIRING LICENSURE OF AND ESTABLISHING A REGULATORY STRUCTURE FOR PERSONS WHO ACQUIRE, POSSESS, CULTIVATE, SELL, DELIVER, TRANSFER, OR TRANSPORT CANNABIS FOR MEDICAL USE FOR A PERSON OTHER THAN THEMSELVES; ESTABLISHING LICENSING PROCEDURES AND FEES FOR GROWERS AND FOR PREMISES WHERE CANNABIS FOR MEDICAL USE IS CULTIVATED OR WHERE OTHER ACTIVITIES INVOLVING THE MEDICAL USE OF CANNABIS OCCUR; CREATING EXCEPTIONS FOR PARENTS OF MINOR CHILDREN WHO ARE REGISTERED FOR MEDICAL USE OF CANNABIS; REQUIRING PUBLIC NOTICE OF AND OPPORTUNITY TO PROTEST APPLICATIONS TO LICENSE PREMISES OR CHANGE THE LOCATION OF LICENSED PREMISES; ESTABLISHING INSPECTION AND REPORTING REQUIREMENTS; ESTABLISHING A FEE ON SALES OF CANNABIS FOR MEDICAL USE; CREATING A SPECIAL REVENUE ACCOUNT; PROVIDING RULEMAKING AUTHORITY; ESTABLISHING A TRANSITION PERIOD; AMENDING SECTIONS 50-46102, 50-46-103, 50-46-201, 50-46-205, 50-46-206, AND 50-46-210, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE."

Summary Section 1. Section 50-46-102, MCA, is amended to read: "50-46-102. Definitions. As used in this chapter, the following definitions apply: Defines the following: 1.

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Caregiver Debilitating Condition Department Grower Cannabis Medical Use Paraphernalia Person

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Physician Premises Qualifying Patient Registry ID Card Resident State Licensing Authority Usable Cannabis Written Certification

Section 2. Section 50-46-103, MCA, is amended to read: "50-46-103. Procedures -- minors -- confidentiality -- report to legislature.

What is required to be submitted by qualifying patient and minor patients to attain a registry identification card.

Consent for minors.

Only one grower per patient – have to declare Custodial parent may declare or be grower, but cannot buy from other source if they choose to grow.

Grower named by custodial parent/guardian can have no interaction with minor. Custodial parent/guardian attains cannabis from grower and administers dose.

Caregiver/Grower usage of cannabis restrictions.

Caregiver/Grower restriction – no felony violent offense Caregivers/Growers can be compensated

Registry ID card timeline, requirements, approval/denial timeline, dates of issuance and expiration, name and address of grower and patient, Confidentiality of patient registry list and acceptable access of list by various agencies.

Annual reporting by department to Legislature.

Section 3. Section 50-46-201, MCA, is amended to read: "50-46-201. Medical use of cannabis -- legal protections -limits on amount -- presumption of medical use”.

Legal protections Plant count by grower per caregiver (12) plants per patient – 2 ounces of usable cannabis per patient Grower limits of 1 pound per patient for each individual with a valid registry card. This limit is due to the agricultural nature of business and provides for growing time in between harvests, especially in cases of high volume patients who may be treating “high volume” diseases (i.e. cancer treatment requires high doses of cannabis oil to treat effectively.) There are seed to sale tracking programs available and prevalent today to monitor these activities according to state law.

Physician protections Interest and right to property protections Asserts reciprocity with other medical marijuana states Section 4. Section 50-46-205, MCA, is amended to read: "50-46-205. Limitations of Medical Cannabis Act”.

NO: operation, navigation, be in actual physical control of any motor vehicle, aircraft, or motorboat while under the influence of cannabis.

NO: use of cannabis by caregiver, grower NO: smoking of cannabis by qualifying patient: in a school bus or other form of public transportation, on any school grounds, in any correctional facility, or, at any public park, public beach, public recreation center, or youth center.

Cannot require government medical assistance program or private health insurer to reimburse for costs, or require an employer to accommodate the use of cannabis in any workplace.

Caregiver and/or Grower cannot use cannabis or paraphernalia unless a carded registry patient themselves.

Section 5. Section 50-46-206, MCA, is amended to read: "50-46-206. Affirmative defense”.

Lies out guidelines establishing affirmative defense of patients.

Section 6. Section 50-46-210, MCA, is amended to read: "50-46-210. Rulemaking – fees”.

Department is responsible for rulemaking for implementation and administration of registry identification cards, fees, providing information in timely manner to licensing authority. Rules must establish fees for application and renewal sufficient to offset departments expenses. May establish sliding fee scale.

Section 7. Growers -- allowable activities -- prohibitions.

May: Participate in activities they are licensed for under this Act Be compensated

Transfer a maximum of 30% of the grower's cannabis plants or usable cannabis to other licensed growers annually Submit samples to a lab for testing May Not: acquire, possess, deliver, transfer, or transport cannabis that is not cultivated in Montana by a licensed grower for medical use manufacture or sell a cannabis-related product unless the product is made from cannabis cultivated and manufactured in Montana by a licensed grower may not allow consumption of cannabis acquired, cultivated, manufactured, delivered, transferred, transported, or sold for medical use on premesis Is Required to: Keep detailed records of all transactions and transfers Submit quarterly reports Section 8. Grower license -- requirements -- -- exception -- fees.

Proof of residency, submit address, sign statement agreeing to only provide cannabis to licensed card holders, acknowledge that license does not allow consumption unless applicant also has a valid registry identification card, submit fingerprints and background check at own expense, If submitted previously may request fingerprints on file be used, pay $500 licensing fee with allowance to adopt a sliding fee scale/waiver schedule by department For custodial parent growers a state name based criminal history record check is required May employ individual to work at licensed premises that has growers license certification. Names of all employees supplied to state licensing authority. Provisions for termination.

Licenses expire yearly with direction for shorter periods based on patient registry card count.

Department shall update licensing authority monthly on current, expired, registry identification updates for patients, names of growers identified by each person License issued must state: Name to whom issued, street address of premises, other information as required by licensing authority.

Section 9. Licensing of premises.

A grower may not cultivate cannabis for medical use or undertake other allowable activities related to medical use of cannabis at a premises that is not licensed by the state licensing authority.

A grower applying to license a premises shall submit: street address and physical description, etc, as required by state licensing authority, fee sufficient to cover costs of publishing notice of application, licensing fee.

If the person applying to license a premises is a partnership or if more than one person has a financial interest of in the business operated under the license, the names of all persons in the partnership or with a financial interest must appear on the license. Each person named on the license application shall submit fingerprints for a background check to be conducted pursuant to [section 8] and must meet the requirements of [section 11] and this section before a license may be issued and does not apply to financial institutions.

State licensing authority determines qualifications, inspects premises, ensures requirements of this chapter are met. Except for an individual meeting the provisions of [section 8(4)(a)] (i.e. Caregiver), a license for a premises may not be issued before the date set in the notice provided for in [section 12] for hearing protests Section 10. Change of location of licensed premises.

State licensing authority approves or denies based on guidelines in this section and rulemaking.

Section 11. License as privilege -- criteria for denials.

A grower license or premises license under this chapter is a privilege that the state may grant to an applicant and is not a right to which an applicant is entitled. In making a licensing decision, the state licensing authority shall consider: qualifications, suitability of premises, residency (1 year requirement), corrections supervision status, violations of provisions of this chapter, convicted of felony offense unless: successfully completed terms of sentence and no longer under supervision of the state, and the conviction was not for a felony violent offense in Montana or another state, violations of any Montana state statute as established by state licensing authority in rule or a violation of an equivalent law in another state. License can be revoked for making false statements in any part of original application, renewal application, or any hearing pursuant to application.

Denials by state licensing authority based on zoning, ordinance, or resolution in individual cities/counties, not approved by local health/fire/building officials, off regular police beats and cannot be properly policed by local authorities, within 1250 feet of church, synagogue, or other place of worship, school, or postsecondary school.

Section 12. Notice of application -- investigation -- publication -- protest.

Upon approval of application by state licensing authority notice must be published once a week for 4 weeks.

Verbiage provided in Section. Standard public notice. Protest process and remedy.

Section 13. Determination of public convenience and necessity.

Protests and Protest resolution Section 14. License renewal -- revocation -- suspension.

Grower shall apply for renewal 30 days before expiration date, meet licensing criteria, pay application fees.

Suspensions and revocations covered in this section.

Section 15. Inspections.

State licensing authority conducts inspections annually and ensure license is operating in compliance.

Section 16. Required reports -- business fee.

10% fee on growers gross sales, fees submitted quarterly, summary of inventory on hand and production for quarter, amount and types of items sold, registry number of purchaser, prices, payment submitted at time of report.

Section 17. Rulemaking.

Authorizes state licensing authority to adopt rules necessary to license, establish fees, issuing and renewing licenses, approving changes of location, and registering laboratories, manner in which inspections are conducted, to include contracting with another state agency to conduct inspections, recordkeeping rules for growers and premises, registration and operational requirements for laboratories, penalties for violations, formula used in distributing grants to local governments from special revenue account.

Section 18. Special revenue account.

State licensing authority manages account. Distribution of fees as follows: 50% to state licensing authority for grants to governing city, town, or county. 50% to state licensing and department to cover costs of carrying out duties, and the remainder to the department. Funds distributed to department must be used for: providers of home and community-based medicaid waiver services for people who are 65 years of age or older or who are served pursuant to Title 53, chapter 19, nursing homes, direct-care worker wage increases for employees of: providers of home and community-based medicaid waiver services for people who are 65 years of age or older or who are served pursuant to Title 53, chapter 19, nursing homes, medicaid personal assistance services, nonmedicaid services provided by entities designated as area agencies pursuant to 52-3-103 Section 19. Transition.

Person registered as a Caregiver before 1/1/18 protected by provisions as long as they applied for license at the time state licensing authority starts accepting licenses, Applies no later than 1/3/18, receives license within 6 months of application Section 20. Codification instruction.

Section 21. Severability.

If a part of this act is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of this act is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

Section 22. Effective date.

Effective January 1, 2018.