HP0935, LD 1380, item 1, An Act To Legalize, Tax and Regulate Marijuana

An Act To Legalize, Tax and Regulate Marijuana

Be it enacted by the People of the State of Maine as follows:

PART A

Sec. A-1. 36 MRSA c. 723 is enacted to read:

CHAPTER 723

MARIJUANA TAX

§ 4921. Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1. Bureau. "Bureau" means the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations.

2. Commercial marijuana cultivation facility. "Commercial marijuana cultivation facility" means an entity licensed pursuant to Title 28-A, section 2602, subsection 1 and section 2603 to cultivate, prepare and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities and to other commercial marijuana cultivation facilities.

3. Marijuana. "Marijuana" means all parts of all species of the plant of the genus cannabis whether growing or not, including the leaves, stems, flowers and seeds, 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 marijuana concentrate. "Marijuana" does not include industrial hemp, fiber produced from the stalks, oil, cake made from the seeds of the plant, sterilized seeds of the plant that are incapable of germination or the weight of any ingredient combined with marijuana to prepare topical or oral administrations, food, drink or other product.

4. Marijuana concentrate. "Marijuana concentrate" means a concentrate of cannabinoids extracted from marijuana through the use of propylene glycol, glycerin, butter, olive oil or other typical cooking fats or other solvents.

5. Marijuana establishment. "Marijuana establishment" means a commercial marijuana cultivation facility, marijuana product manufacturing facility or retail marijuana store.

6. Marijuana product. "Marijuana product" means marijuana concentrate, a manufactured or produced product that contains marijuana or a marijuana-infused product that consists of marijuana and other ingredients that is intended for use or consumption, including, but not limited to, an edible product, ointment or tincture.

7. Marijuana product manufacturing facility. "Marijuana product manufacturing facility" means an entity licensed pursuant to Title 28-A, section 2602, subsection 1 and section 2603 to:

A. Purchase marijuana from a commercial marijuana cultivation facility;

B. Manufacture, prepare and package marijuana products; and

C. Sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores.

8. Retail marijuana store. "Retail marijuana store" means an entity licensed pursuant to Title 28-A, section 2602, subsection 1 and section 2603 to:

A. Purchase marijuana from a commercial marijuana cultivation facility;

B. Purchase marijuana and marijuana products from a marijuana product manufacturing facility; and

C. Sell marijuana and marijuana products to consumers.

9. Underage person. "Underage person" means a person under 21 years of age.

§ 4922. Excise tax on marijuana

1. Rate of excise tax. An excise tax is imposed on the sale or transfer of marijuana from a commercial marijuana cultivation facility to a retail marijuana store and from a commercial marijuana cultivation facility to a marijuana product manufacturing facility. Each commercial marijuana cultivation facility shall pay an excise tax at the rate of 15% on marijuana that is sold or transferred from the commercial marijuana cultivation facility as authorized by a license issued by the bureau pursuant to Title 28-A, section 2602, subsection 1 and section 2603.

2. Returns; payment of tax; penalty. A commercial marijuana cultivation facility shall file, on or before the last day of each month, a return on a form prescribed and furnished by the assessor together with payment of the tax due under this chapter. The return must report all marijuana held, purchased, manufactured, shipped or transported to a retail marijuana store or to a marijuana product manufacturing facility within the State during the preceding calendar month. A commercial marijuana cultivation facility shall keep a complete and accurate record at its principal place of business to substantiate all receipts and sales of marijuana.

The return must include further information as the assessor may prescribe and must show a credit for any marijuana exempted as provided in subsection 4. Records must be maintained to substantiate the exemption. Tax previously paid on marijuana that is returned to a marijuana establishment because the marijuana has become unfit for use, sale or consumption and for marijuana that is returned to a commercial marijuana cultivation facility that is subsequently destroyed by the commercial marijuana cultivation facility may be taken as a credit on a subsequent return. The assessor may either witness the destruction of the marijuana or may accept another form of proof that the marijuana has been destroyed by the commercial marijuana cultivation facility.

3. Failure to make payments. The assessor shall notify the bureau when a commercial marijuana cultivation facility fails to make a tax payment required by this section. The bureau may suspend or revoke the license of a commercial marijuana cultivation facility that fails to make a tax payment as required by this section and may impose other penalties as determined by the bureau.

4. Exemption. The tax on marijuana imposed pursuant to this section may not be levied on marijuana sold by registered dispensaries or registered primary caregivers to qualifying patients and primary caregivers pursuant to Title 22, chapter 558-C.

5. Rate review. The bureau shall review the tax levels established under this section annually and report its findings and make recommendations to the Legislature as appropriate regarding adjustment to the tax level.

§ 4923. Sales tax on marijuana and marijuana products

1. Rate of sales tax. A tax is imposed on the sale of marijuana and marijuana products sold at retail marijuana stores. The rate of tax is 10%.

2. Exemption. The tax on marijuana and marijuana products imposed pursuant to this section may not be levied on marijuana sold by registered dispensaries or registered primary caregivers to qualifying patients and primary caregivers pursuant to Title 22, chapter 558-C.

3. Rate review. The bureau shall review the tax levels established under this section annually and report its findings and make recommendations to the Legislature as appropriate regarding adjustment to the tax level.

§ 4924. Application of marijuana excise and sales tax revenues

1. Application of excise tax revenue. The following provisions govern the application of revenues received from imposition of the excise tax pursuant to section 4922. On or before the last day of each month, the State Controller shall transfer the funds to the General Fund except that:

A. Five percent of the revenues must be expended to fund drug recognition experts in state agencies as determined by law.

This paragraph is repealed January 1, 2018;

B. Ten percent of the revenues must be credited to the Marijuana Regulation and Licensing Fund established under Title 28-A, section 2607;

C. Five percent of the revenues must be credited to the Marijuana Research Fund established under Title 28-A, section 2608.

This paragraph is repealed January 1, 2022;

D. Ten percent of the revenues must be credited to the office of substance abuse and mental health services within the Department of Health and Human Services for the purpose of providing addiction treatment services;

E. Ten percent of the revenues must be credited to the Department of Health and Human Services, Maine Center for Disease Control and Prevention for the purpose of an ongoing public awareness campaign to reduce youth marijuana, alcohol and tobacco consumption;

F. Five percent of the revenues must be credited to a statewide sheriffs association for enforcement activities for deterring sales of marijuana and alcohol to underage persons; and

G. Five percent of the revenues must be credited to the Low-income Marijuana Patient Access Program Fund established under Title 28-A, section 2609.

2. Application of sales tax revenue. The following provisions govern the application of the revenues received from the imposition of sales tax pursuant to section 4923. The State Controller shall transfer the revenues to the General Fund except that:

A. Each year, the first $30,000,000 must be allocated to fund public school construction or renovation; and

B. After the allocation of revenue in paragraph A, 5% of the revenues must be allocated to the municipalities to be apportioned according to the ratio of tax revenue collected under this chapter within the boundaries of the municipality to the total sales tax receipts and to be apportioned to the county governments according to the ratio of tax revenue collected under this chapter within the boundaries of the unincorporated areas of the county to the total sales tax receipts.

§ 4925. Rulemaking

The bureau shall adopt rules to implement this chapter. Rules adopted pursuant to this section are routine technical rules as defined by Title 5, chapter 375, subchapter 2-A.

§ 4926. Annual report

The assessor shall report annually beginning January 30, 2018 on the amount of tax revenues collected pursuant to sections 4922 and 4923 and the amounts distributed pursuant to section 4924 to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over taxation matters.

Sec. A-2. Review and report recommendations. The Department of Administrative and Financial Services, Bureau of Revenue Services shall review methods for ensuring that all marijuana and marijuana products that are sold in the State are assessed except for marijuana that is exempt pursuant to the Maine Revised Statutes, Title 36, section 4922, subsection 4 and section 4923, subsection 2. The bureau shall report its findings and recommendations, including any necessary legislation, to the joint standing committee of the Legislature having jurisdiction over taxation matters by February 15, 2017. The joint standing committee is authorized to submit legislation to the First Regular Session of the 128th Legislature based on the subject matter of the report.

PART B

Sec. B-1. 22 MRSA §2383, sub-§1, as repealed and replaced by PL 2009, c. 652, Pt. B, §6, is repealed.

Sec. B-2. 22 MRSA §2383, sub-§3 is enacted to read:

3. Marijuana. The following provisions apply to the possession of marijuana.

A. Except as provided in chapter 558-C, a person under 21 years of age may not possess marijuana. A person under 21 years of age who possesses up to 2 1/2 ounces of marijuana commits a civil violation for which a fine of not more than $100 may be adjudged and a specified number of hours of community service for the benefit of the State, the municipality or other public entity or a charitable institution may be ordered. If no other violation of this paragraph is committed within one year, the court shall expunge the record of the civil violation.

B. Except as provided in this paragraph and chapters 558-C and 558-D, a person 21 years of age or older may not possess marijuana. Pursuant to section 2430-F, a person 21 years of age or older may possess up to one ounce of marijuana. A person 21 years of age or older who possesses over one ounce but less than 2 1/2 ounces of marijuana commits a civil violation for which a fine of not more than $100 may be adjudged and a specified number of hours of community service for the benefit of the State, the municipality or other public entity or a charitable institution may be ordered.

C. A marijuana establishment or marijuana transportation provider licensed pursuant to Title 28-A, chapter 111 may possess marijuana as authorized by that chapter.

PART C

Sec. C-1. 22 MRSA c. 558-D is enacted to read:

CHAPTER 558-D

PERSONAL USE OF MARIJUANA ACT

§ 2430-D. Short title

This chapter may be known and cited as "the Personal Use of Marijuana Act."

§ 2430-E. Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1. Commercial marijuana cultivation facility. "Commercial marijuana cultivation facility" means an entity licensed under Title 28-A, section 2602, subsection 1 and section 2603 to cultivate, prepare and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities and to other commercial marijuana cultivation facilities.

2. Consumer. "Consumer" means a person 21 years of age or older who purchases marijuana or marijuana products for personal use by a person or persons 21 years of age or older, but not for use by an underage person. "Consumer" does not include a patient or primary caregiver acting pursuant to chapter 558-C.

4. Marijuana accessories. "Marijuana accessories" means equipment, products or materials of any kind that are used, or intended 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 marijuana or for ingesting, inhaling or otherwise introducing marijuana into the human body.

5. Marijuana concentrate. "Marijuana concentrate" means a concentrate of cannabinoids extracted from marijuana through the use of propylene glycol, glycerin, butter, olive oil or other typical cooking fats or other solvents.

7. Marijuana product manufacturing facility. "Marijuana product manufacturing facility" means an entity licensed under Title 28-A, section 2602, subsection 1 and section 2603 to:

A. Purchase marijuana from a commercial marijuana cultivation facility;

B. Manufacture, prepare and package marijuana products; and

C. Sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores.

8. Retail marijuana store. "Retail marijuana store" means an entity licensed pursuant to Title 28-A, section 2602, subsection 1 and section 2603 to:

A. Purchase marijuana from a commercial marijuana cultivation facility;

B. Purchase marijuana and marijuana products from a marijuana product manufacturing facility; and

C. Sell marijuana and marijuana products to consumers.

9. Seedling. "Seedling" means a marijuana plant that is not a mature plant.

10. Underage person. "Underage person" means a person under 21 years of age.

§ 2430-F. Personal use of marijuana

1. Personal use of marijuana. A consumer may:

A. Use, purchase from a retail marijuana store or possess up to one ounce of marijuana or marijuana products and marijuana accessories;

B. Transfer or furnish, without remuneration, up to one ounce of marijuana and up to 6 marijuana seedlings to another consumer;

C. Possess, grow, cultivate or process up to 6 mature marijuana plants or seedlings and possess the marijuana and marijuana products produced from the marijuana plants on the premises where the plants were grown; and

D. Use marijuana in a nonpublic place, including a private residence.

2. Cultivation. A consumer may engage in cultivation in the consumer's home of marijuana for personal use pursuant to this subsection.

A. A consumer may cultivate up to 6 marijuana plants at that person's place of residence, on property owned by that person or on another person's property with the written permission of the owner of the other property.

B. A consumer who elects to cultivate marijuana plants shall take reasonable precautions to ensure that the plants and any marijuana products are secure from unauthorized access or access by an underage person. Reasonable precautions include, but are not limited to, cultivating marijuana in a fully enclosed, locked indoor or outdoor area to which an underage person does not reasonably have access.

C. Cultivation of marijuana for medical use pursuant to chapter 558-C is not cultivation of marijuana for personal use under this chapter.

3. Actions and conduct protected and not protected. This subsection applies to the cultivation, possession, processing, use or furnishing without remuneration and purchase of marijuana and marijuana products by a consumer for personal use.

A. Notwithstanding Title 17-A, chapter 45 or any other provision of law, the conduct and actions allowed under this chapter are legal under the laws of this State, do not constitute a civil or criminal offense under state law or the law of any political subdivision of the State and may not serve as the basis for seizure or forfeiture of property or assets under the laws of this State.

B. The prohibitions and limitations on smoking tobacco products specified in chapters 262 and 263 apply to marijuana.

C. The provisions of this chapter do not authorize a consumer or any other entity to cultivate, possess, process or use, transfer or furnish without remuneration or transport or purchase marijuana on federal property or shield a consumer or other entity from prosecution under federal law.

D. The provisions of this chapter do not exempt a person from the laws governing the operation of motor vehicles under Title 29-A, chapter 23 or the laws governing hunting or operating watercraft, snowmobiles or all-terrain vehicles under Title 12, chapter 911 and do not prevent the imposition of any penalty for the consumption of marijuana within a vehicle on a public way.

4. Parental rights. A person who consumes or uses marijuana or marijuana products in accordance with this section may not be denied parental rights and responsibilities for a minor child because of the person's status as a consumer who uses marijuana or marijuana products in compliance with this section unless the person's behavior creates an unreasonable danger to the health or welfare of the minor child. A person who consumes or uses marijuana or marijuana products in accordance with this section may not be considered to be jeopardizing the health or welfare of a minor child under the provisions of chapter 1071 because of the person's status as a consumer who uses marijuana or marijuana products in compliance with this section unless the person's behavior creates an unreasonable danger to the health or welfare of the minor child.

PART D

Sec. D-1. 28-A MRSA Pt. 9 is enacted to read:

PART 9

REGULATION OF MARIJUANA OPERATIONS

CHAPTER 111

MARIJUANA OPERATIONS

§ 2601. Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1. Commercial marijuana cultivation facility. "Commercial marijuana cultivation facility" means an entity licensed under section 2602, subsection 1 and section 2603 to cultivate, prepare and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities and to other commercial marijuana cultivation facilities.

2. Consumer. "Consumer" means a person 21 years of age or older who purchases marijuana or marijuana products for personal use by a person or persons 21 years of age or older. "Consumer" does not include a patient or primary caregiver pursuant to Title 22, chapter 558-C.

3. Edible marijuana product. "Edible marijuana product" means any product that is infused with marijuana that is intended to be consumed orally, including, but not limited to, any type of food, drink or pill.

4. Marijuana. "Marijuana" means all parts of all species of the plant of the genus cannabis whether growing or not, including the leaves, stems, flowers and seeds, 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 marijuana concentrate. "Marijuana" does not include industrial hemp, fiber produced from the stalks, oil, cake made from the seeds of the plant, sterilized seeds of the plant that are incapable of germination or the weight of any ingredient combined with marijuana to prepare topical or oral administrations, food, drink or other product.

5. Marijuana accessories. "Marijuana accessories" means equipment, products or materials of any kind that are used, or intended 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 marijuana or for ingesting, inhaling or otherwise introducing marijuana into the human body.

6. Marijuana concentrate. "Marijuana concentrate" means a concentrate of cannabinoids extracted from marijuana through the use of propylene glycol, glycerin, butter, olive oil or other typical cooking fats or other solvents.

7. Marijuana establishment. "Marijuana establishment" means a commercial marijuana cultivation facility, marijuana testing facility, marijuana product manufacturing facility or retail marijuana store.

8. Marijuana product. "Marijuana product" means marijuana concentrate, a manufactured or produced product that contains marijuana or a marijuana-infused product that consists of marijuana and other ingredients that is intended for use or consumption, including, but not limited to, an edible marijuana product, ointment or tincture.

9. Marijuana product manufacturing facility. "Marijuana product manufacturing facility" means an entity licensed pursuant to section 2602, subsection 1 and section 2603 to:

A. Purchase marijuana from a commercial marijuana cultivation facility;

B. Manufacture, prepare and package marijuana products; and

C. Sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores.

10. Retail marijuana store. "Retail marijuana store" means an entity licensed pursuant to section 2602, subsection 1 and section 2603 to:

A. Purchase marijuana from a commercial marijuana cultivation facility;

B. Purchase marijuana and marijuana products from a marijuana product manufacturing facility; and

C. Sell marijuana and marijuana products to consumers.

11. Marijuana testing facility. "Marijuana testing facility" means a public or private laboratory licensed under section 2602, subsection 1 and section 2603 to conduct research and analyze marijuana, marijuana products and marijuana concentrate sold at retail marijuana stores for contaminants, potency and safety and to do research and advise the bureau regarding marijuana and marijuana product quality standards.

12. Marijuana transportation provider. "Marijuana transportation provider" means a person licensed pursuant to section 2602, subsection 1 and section 2603 to transport marijuana and marijuana products from one marijuana establishment to another marijuana establishment.

13. Underage person. "Underage person" means a person under 21 years of age.

§ 2602. Marijuana operations; bureau

The bureau shall enforce the laws and rules relating to the manufacturing, processing, labeling, storing, transporting, testing and selling of marijuana and marijuana products by marijuana establishments and marijuana transportation providers and administer the laws relating to licensure, regulation and the collection of taxes from marijuana establishments.

1. Duties; powers. The bureau shall license and inspect marijuana establishments and marijuana transportation providers established and regulated under this chapter. The bureau shall administer an application, licensing and regulatory process to ensure that applicants and holders of licenses are qualified for licensure and for continuing licensure. The bureau shall monitor marijuana establishments to ensure that marijuana and marijuana products are not sold by marijuana establishments to underage persons. The bureau shall monitor marijuana establishments for compliance with this chapter and rules adopted pursuant to this chapter. The bureau may perform inspections of marijuana establishments and marijuana transportation providers and may cooperate with law enforcement agencies to perform inspections of marijuana establishments and marijuana transportation providers.

2. Records. A marijuana establishment shall maintain the information required by this subsection and by rule adopted to implement this subsection in a format that is readily understood by a reasonably prudent businessperson. Licensees are required to exercise due diligence in preserving and maintaining all required records. Loss of electronically maintained records may not be considered a mitigating factor for violations of this rule.

A. A marijuana establishment shall retain all books and records necessary to fully account for the business transactions conducted under its license for the current year and 3 preceding calendar years.

B. A marijuana establishment shall maintain on its licensed premises the originals or complete copies of its books and records for the preceding 6 months. Books and records from time periods prior to the preceding 6 months may be archived on or off the premises.

C. A marijuana establishment shall maintain books and records that fully account for the business transactions of the marijuana establishment including, but not limited to, all records normally maintained and retained for taxation purposes and the following:

(1) A list of all current employees and nonemployee owners who work at the marijuana establishment, including each person's full name and occupational license category and number if applicable to the person;

(2) With regard to the licensed premises of the marijuana establishment and any associated off-premises storage facilities, the business contact information for vendors that maintain video surveillance systems and security alarm systems;

(3) With regard to limited-access areas of licensed premises and off-premises storage facilities, diagrams of all limited-access areas; and

(4) Visitor logs of all visitors entering and departing from limited-access areas or areas to which access is restricted.

D. A marijuana establishment shall maintain adequate records regarding the transport of all marijuana and marijuana products in accordance with section 2603, subsection 18.

E. A marijuana establishment shall provide immediate access to on-premises records during normal business hours following a request from the bureau and must provide access to off-premises records within 3 business days following a request from the department.

3. Publish laws and rules. The bureau shall ensure that marijuana establishments and marijuana transportation providers have access to the provisions of law and the rules governing marijuana establishments and marijuana transportation providers by publishing on a publicly accessible website the text of this chapter as adopted and as it may be amended and all rules adopted under this chapter. The bureau shall publish all changes to the law or rules on the website within 90 days of adjournment of each session of the Legislature and upon adoption of new or amended rules.

4. Certification. The bureau shall certify monthly to the Treasurer of State a complete statement of revenues and expenses for applications for licenses, licenses issued, revenues collected by the bureau and the amount of funds transferred to municipalities pursuant to section 2603, subsection 4 and shall submit an annual report that includes a complete statement of the revenues and expenses of the bureau related to the duties of the bureau imposed by this chapter to the Governor and the Legislature.

5. Advertising; sales. A marijuana establishment may not advertise within this State marijuana or marijuana products except in the form specifically authorized by the bureau by rule. A marijuana establishment may not advertise with or produce sales materials that include a picture or representation of the State House. Marijuana may not be sold through an automatic vending machine. The bureau shall regulate the naming of individual species of marijuana and marijuana products for the purposes of advertising, educational materials, promotion and sales. The bureau shall adopt rules to regulate advertising by marijuana establishments.

6. Investigators. The bureau shall employ investigators to perform law enforcement functions on behalf of the bureau. Bureau investigators shall:

A. Investigate suspected violations of this chapter and Title 22, chapter 558-D and any rules adopted under this chapter and Title 22, chapter 558-D;

B. Serve warrants, summonses, subpoenas, administrative citations, notices and other processes relating to the enforcement of laws regulating marijuana establishments and marijuana transportation providers;

C. Assist or aid a law enforcement officer in the performance of the duties of the officer upon the request of the officer or local officials or law enforcement having jurisdiction over a marijuana establishment or marijuana transportation provider;

D. Inspect, examine or investigate the premises of a marijuana establishment or the premises or property of a marijuana transportation provider during the business hours of the establishment or provider and inspect employee records to ensure compliance with the licensure requirements and all books and records required to be maintained by any marijuana establishment or marijuana transportation provider;

E. Require a marijuana establishment, upon request, to permit the testing or examination of marijuana, a marijuana product or an edible marijuana product; and

F. Exercise any other power or duty authorized by law not under paragraphs A to E.

7. Disciplinary procedures; suspension. The following provisions apply to disciplinary proceedings and actions by the bureau with regard to a marijuana establishment or marijuana transportation provider.

A. An action may be initiated by the bureau on its own initiative or in response to a complaint received by the bureau on the basis of reasonable cause to believe that a marijuana establishment or marijuana transportation provider has violated state law or rules or a lawful order of the bureau or the Department of Health and Human Services. The bureau shall commence an action by serving upon the marijuana establishment or marijuana transportation provider an order to show cause at a hearing why the license of the marijuana establishment or marijuana transportation provider should not be suspended or revoked. The order to show cause must identify the law, rule or order alleged to have been violated and the factual basis for the order to show cause and notify the marijuana establishment or marijuana transportation provider that its license could be suspended or revoked should the charges contained in the notice be sustained upon final hearing. The hearing must be conducted in accordance with paragraph C.

B. A summary action may be initiated by the bureau on its own initiative or in response to a complaint received by the bureau on the basis of reasonable cause to believe that a marijuana establishment or marijuana transportation provider has violated state law or rules or a lawful order of the bureau or the Department of Health and Human Services and that the violation is a willful or deliberate violation or that the public health, safety or welfare requires emergency action. The bureau shall commence a summary action by serving upon the marijuana establishment or marijuana transportation provider a summary suspension order that temporarily suspends the license of the marijuana establishment or marijuana transportation provider and an order to show cause at a hearing why the license of the marijuana establishment or marijuana transportation provider should not be permanently suspended or revoked. The summary suspension order must identify the law, rule or order alleged to have been violated and the factual basis for the order and notify the marijuana establishment or marijuana transportation provider that its license has been suspended pending a hearing. The hearing on suspension must be scheduled and held on an expedited basis and must be conducted in accordance with paragraph C.

C. The bureau shall conduct hearings on suspensions under this subsection in accordance with the Maine Administrative Procedure Act. The marijuana establishment or marijuana transportation provider may be represented by counsel at the expense of the marijuana establishment or marijuana transportation provider.

8. Signs required during suspension. Every marijuana establishment or marijuana transportation provider whose license has been suspended shall post 2 notices in conspicuous places, one on the exterior and one on the interior of its premises, for the duration of the suspension. The notices must be at least 17 inches in length and 14 inches in width and contain lettering not less than 1/2 inch in height. An advertisement or posted sign that indicates that the premises have been closed or business suspended for any reason other than as provided in this subsection is prohibited and constitutes a violation of this subsection.

A. For suspension following a hearing, the sign must be in the following form:

NOTICE OF SUSPENSION

MARIJUANA LICENSES ISSUED FOR THESE PREMISES HAVE BEEN SUSPENDED BY ORDER OF THE BUREAU OF ALCOHOLIC BEVERAGES AND LOTTERY OPERATIONS FOR VIOLATION OF MAINE LAW GOVERNING MARIJUANA OPERATIONS

B. For a summary suspension pending a hearing, the sign must be in the following form:

NOTICE OF SUSPENSION

MARIJUANA LICENSES ISSUED FOR THESE PREMISES HAVE BEEN SUSPENDED BY ORDER OF THE BUREAU OF ALCOHOLIC BEVERAGES AND LOTTERY OPERATIONS FOR ALLEGED VIOLATION OF MAINE LAW GOVERNING MARIJUANA OPERATIONS

9. Administrative hold. To prevent the destruction of evidence, diversion of marijuana or marijuana products or threats to public safety while permitting a marijuana establishment to retain its inventory pending further investigation or a final decision of the bureau, a bureau investigator may order an administrative hold of marijuana or marijuana products pursuant to the following procedure:

A. If during an investigation or inspection of a marijuana establishment a bureau investigator develops reasonable grounds to believe that certain marijuana or marijuana products constitute evidence of acts in violation of this chapter or Title 22, chapter 558-D or rules adopted under these chapters or otherwise constitute a threat to the public safety, the bureau investigator may issue a notice of administrative hold of any such marijuana or marijuana products. The notice of administrative hold must describe the marijuana or marijuana product that is subject to the administrative hold sufficiently to enable the identification of the marijuana or marijuana product.

B. The marijuana establishment shall completely segregate the marijuana or marijuana products subject to an administrative hold in a limited-access area of the premises under investigation, where the marijuana establishment shall safeguard the marijuana or marijuana products that are subject to the administrative hold. Pending the outcome of the investigation, a final decision by the bureau and any related disciplinary proceedings, the marijuana establishment may not sell, give away, transfer, transport or destroy the marijuana or marijuana products that are subject to the administrative hold. A marijuana establishment that is subject to an administrative hold under this subsection may continue to cultivate and harvest marijuana. Marijuana or marijuana products that are subject to an administrative hold must, when harvested, be put into separate harvest batches.

10. Voluntary surrender of marijuana or marijuana products. A marijuana establishment, prior to a final agency order and upon mutual agreement with the bureau, may elect to waive a right to a hearing and any associated rights and voluntarily surrender in writing any marijuana or marijuana product to the bureau. The bureau may require destruction of the marijuana or marijuana products in the presence of a bureau investigator. An employee or officer of a marijuana establishment who signs an affidavit of voluntary surrender on behalf of a marijuana establishment shall certify that the employee or officer has authority to represent and bind the marijuana establishment.

11. Activity during period of suspension or after revocation. A marijuana establishment or a marijuana transportation provider may not sell, serve, give away, distribute, transfer or transport marijuana or a marijuana product during the time period that the marijuana establishment's or marijuana transportation provider's license is suspended or after the license is revoked following a hearing pursuant to subsection 7. Consumers may not enter the premises of a marijuana establishment or the premises or property of a marijuana transportation provider during the time period that the marijuana establishment's or marijuana transportation provider's license is suspended or after the license is revoked following a hearing pursuant to subsection 7. Marijuana must be removed from the premises of a marijuana establishment or the premises or property of a marijuana transportation provider and destroyed except that, at the bureau's discretion, a marijuana establishment that cultivates marijuana may maintain and care for the marijuana on the premises during the suspension of the license and a marijuana product manufacturing facility may manufacture marijuana products or marijuana concentrate during the suspension of a license. The bureau shall adopt rules to implement this subsection.

12. Annual report. Beginning January 30, 2019 and annually thereafter, the bureau shall report to the joint standing committees of the Legislature having jurisdiction over health and human services matters, taxation matters and alcoholic beverages matters. The report must include, but is not limited to, all rules adopted by the bureau and statistics regarding the number of marijuana establishment applications received and licensed, the licensing fees collected within the prior year and any inspections violations. The report must also include statistical data, gathered by the bureau or other state agencies and law enforcement agencies, regarding youth consumption in the State of and perceptions of safety of marijuana, tobacco, alcohol and controlled substances. The committees to which the report is provided may each submit legislation to address any issues related to the report.

§ 2603. Licensing of marijuana establishments and marijuana transportation providers

1. Applications. An applicant for a marijuana establishment license or marijuana transportation provider license shall file an application in the form required by the bureau for the type of marijuana establishment license sought or the marijuana transportation provider license, along with the application fee as set by rule. An applicant may apply for and be granted more than one type of marijuana establishment license, except that a person or entity licensed to operate as a marijuana testing facility may not hold any other marijuana establishment license.

2. License required. The bureau shall issue or renew a license to operate a marijuana establishment or marijuana transportation provider to an applicant who meets the requirements of Title 22, chapter 558-D, this chapter and rules adopted pursuant to law. The bureau shall obtain, prior to approving an application, criminal history record information on the applicant and any employees or officers of the applicant, including, at a minimum, criminal history record information from the Department of Public Safety, State Bureau of Identification. The applicant shall pay for the criminal history record check required by this subsection pursuant to subsection 3. Prior to approving an application, the bureau shall perform a site inspection, review the financial capacity of the applicant, review the current consumer satisfaction if any consumers are being served while the application is pending and conduct product quality testing. The bureau shall complete the process of approving the application and issuing a decision on the application within 90 days of the date of receipt of the application unless:

A. The bureau finds the applicant is not in compliance with this section or rules adopted by the bureau;

B. The bureau is notified by the municipality that the applicant has listed in the application as containing the premises of the applicant that the applicant is not in compliance with an ordinance, rule or regulation applicable to the marijuana establishment or marijuana transportation provider that is in effect at the time of application; or

C. The number of marijuana establishments allowed in the municipality that the applicant has listed in the application has been limited pursuant to section 2604 or is limited by subsection 8 and the bureau has already licensed the maximum number of marijuana establishments allowed in the municipality for the category of license that is sought.

3. License fees. The bureau shall determine the revenue needed to establish and maintain the licensing, investigating, regulating and enforcement operations of the bureau and shall adopt rules to set license fees in proportion to the anticipated type and number of applicants.

4. Municipal consultation. In order to cover the costs of a municipality for consultation with the bureau, upon receiving an application for a marijuana establishment license or marijuana transportation provider license, the bureau shall immediately forward a copy of the application and 25% of the license application fee to the municipality that the applicant identifies as containing the primary premises of the marijuana establishment or marijuana transportation provider.

5. Competing applications. The following provisions control the consideration of applications through the use of a competitive rating procedure when more than one application is received by the bureau for the same type of marijuana establishment in the same municipality or more than one application is received by the bureau for a marijuana transportation provider in the same region of the State.

A. If a greater number of applications is received from qualified applicants to operate a marijuana establishment in a municipality than is allowed under the limits enacted by the municipality pursuant to section 2604 or pursuant to subsection 8, the bureau shall solicit and consider input from the municipality as to the municipality's preference or preferences for licensure. Within 90 days after the date the first application is received, the bureau shall issue the maximum number of applicable licenses for each type of marijuana establishment license application received.

B. The application process adopted by the bureau by rule must include scoring preferences as provided in this paragraph.

(1) An applicant for a license for a marijuana establishment or a marijuana transportation provider license has preference in the licensure process over other applicants if the applicant does not hold a license under this chapter.

(2) An applicant for a license for a marijuana establishment or a marijuana transportation provider license has preference in the licensure process over other applicants if the applicant:

(a) Is at the time of application registered as a primary caregiver for patients for the medical use of marijuana under Title 22, section 2425 or is exempt from registration under the provisions of Title 22, section 2425, subsection 9-A; or

(b) Is at the time of application a registered dispensary for the medical use of marijuana under Title 22, section 2428.

6. Reason for denial. If the bureau denies an application for a marijuana establishment license or marijuana transportation provider license, the bureau shall notify the applicant in writing of the decision on the application and the specific reason for denial.

7. License term. A license for a marijuana establishment or marijuana transportation provider issued under this chapter is effective for one year from the date of issuance.

8. Limitation on number of retail marijuana stores. Unless a municipality has prohibited retail marijuana stores pursuant to section 2604, if at least one qualifying application is received, the bureau shall license:

A. A minimum of one and a maximum of 4 retail marijuana stores in a municipality with a population of at least 20,000;

B. A minimum of one and a maximum of 2 retail marijuana stores in a municipality with a population of at least 5,000 but less than 20,000; and

C. One retail marijuana store in a municipality with a population of at least 2,000 but less than 5,000.

The bureau may license one retail marijuana store in a municipality or unorganized territory where the population is less than 2,000 if the municipality or county commissioners for the unorganized territory have not prohibited a retail marijuana store pursuant to section 2604.

9. Tiered system of commercial marijuana cultivation facilities. The bureau shall administer a tiered system of cultivation that affords an opportunity for small, medium and large commercial marijuana cultivation facilities in accordance with the need to ensure an adequate supply of marijuana and marijuana products, to keep supply and demand in balance and to avoid diversion of marijuana and marijuana products because supply far exceeds demand. The bureau shall ensure that at least 60% of all licenses for commercial marijuana cultivation facilities are held by small commercial marijuana cultivation facilities. The bureau may impose limits on the cultivation and processing of marijuana by licensed commercial marijuana cultivation facilities and licensed marijuana product manufacturing facilities on a temporary basis if the bureau determines that the supply of marijuana and marijuana products exceeds demand and that limits are necessary to protect the public health and welfare. An applicant for a commercial marijuana cultivation facility license shall indicate on the application the tier for which the applicant is applying and the amount of actual square footage in the premises that will be designated as plant canopy. A person may hold licenses for more than one tier. In the licensure process for a tier the bureau shall grant preference to a marijuana establishment that does not hold a license for that tier.

10. Licensure requirements for marijuana establishments and marijuana transportation providers. The following requirements apply as qualifications for licensure for an applicant for a license under this section.

A. The bureau shall conduct an inspection of the premises identified in the application and shall ensure that the premises, property and physical layout of the marijuana establishment or marijuana transportation provider meet the requirements of this chapter and Title 22, chapter 558-D.

B. An applicant for a license must have lived in the State for a minimum of 2 years prior to applying. If a corporation is applying, a majority of the members of the board must have been residents of the State for a minimum of 2 years prior to the date of the application.

C. An applicant who has held a license for a marijuana establishment or marijuana transportation provider and whose license has been revoked is ineligible for a license.

D. An applicant who has been convicted of a disqualifying drug offense is ineligible for a license. For purposes of this section, "disqualifying drug offense" means a conviction for a violation of a state or federal controlled substance law that is a crime punishable by imprisonment for one year or more. "Disqualifying drug offense" does not include an offense for which the sentence, including any term of probation, incarceration or supervised release, was completed 10 or more years prior to application for licensure or an offense that consisted of conduct that is permitted under this chapter.

E. Corporations applying for a license must be incorporated in the State. A corporation is ineligible for a license if any of the principal officers of the corporation is ineligible under paragraph B, C or D.

11. Authorized activities of a marijuana establishment. A marijuana establishment is limited in its business activities to activities specifically allowed by this chapter for the type of license issued to the marijuana establishment. A marijuana establishment, as authorized by the terms of the license, may engage in the manufacture, possession, purchase or sale of marijuana, marijuana products and marijuana accessories to a consumer for the personal use of marijuana under Title 22, chapter 558-D.

A person may lease to a marijuana establishment or marijuana transportation provider or otherwise allow the use by a marijuana establishment or marijuana transportation provider of property owned, occupied or controlled by the person for any of the activities conducted lawfully under this section in accordance with paragraphs A to E. A marijuana establishment may use a marijuana transportation provider to transport marijuana and marijuana products to or from another marijuana establishment.

A. A retail marijuana store may:

(1) Possess, display and transport marijuana, marijuana products and marijuana accessories;

(2) Purchase marijuana from a commercial marijuana cultivation facility;

(3) Purchase marijuana and marijuana products from a marijuana product manufacturing facility; and

(4) Sell marijuana, marijuana products and marijuana accessories to consumers.

B. A commercial marijuana cultivation facility may:

(1) Cultivate, harvest, process, package, transport, display and possess marijuana;

(2) Deliver or transfer marijuana to a marijuana testing facility;

(3) Sell marijuana to another commercial marijuana cultivation facility, a marijuana product manufacturing facility and a retail marijuana store; and

(4) Purchase marijuana from another commercial marijuana cultivation facility.

C. A marijuana product manufacturing facility may:

(1) Package, process, transport, manufacture, display and possess marijuana and marijuana products;

(2) Deliver or transfer marijuana and marijuana products to a marijuana testing facility;

(3) Sell marijuana and marijuana products to a retail marijuana store and a marijuana product manufacturing facility;

(4) Purchase marijuana from a commercial marijuana cultivation facility; and

(5) Purchase marijuana and marijuana products from another marijuana product manufacturing facility.

D. A marijuana testing facility may possess, process, repackage, store, transport, display, transfer and deliver marijuana and marijuana products in order to perform the functions of the marijuana testing facility, including conducting research and analyzing marijuana, marijuana products and marijuana concentrate sold at retail marijuana stores for contaminants, potency and safety and to advise the bureau regarding marijuana and marijuana product quality standards.

E. A marijuana transportation provider may transport marijuana and marijuana products from one marijuana establishment to another marijuana establishment.

12. General licensing requirements for marijuana establishments and marijuana transportation providers. The following requirements apply to marijuana establishments and marijuana transportation providers licensed under this chapter and to applicants for licensure and to their employees and officers.

A. Applicants and marijuana establishments and marijuana transportation providers and their officers and employees shall cooperate with the bureau in the performance of duties under this chapter.

B. Applicants and marijuana establishments and marijuana transportation providers and their officers and employees may not interfere with, obstruct or impede an employee or investigator of the bureau in exercising the employee's or investigator's duties under the provisions of this chapter, Title 22, chapter 558-D and rules adopted to implement the chapters.

13. General operational requirements for marijuana establishments. Marijuana establishments must meet the requirements of this subsection.

A. A marijuana establishment may not be located within 1,000 feet of a preexisting public or private school. The distance must be measured from the main entrance of the marijuana establishment to the main entrance of the school by the ordinary course of travel.

B. A marijuana establishment shall implement appropriate security measures to prevent:

(1) Unauthorized entrance into areas containing marijuana or marijuana products;

(2) The theft of marijuana or marijuana products located on the premises or in transit to or from the premises;

(3) Tampering with or adulteration of marijuana or marijuana products;

(4) Unauthorized access to marijuana, marijuana products or marijuana accessories; and

(5) Access to marijuana or marijuana products by underage persons or sales of marijuana or marijuana products to underage persons, except that a marijuana establishment that is also a primary caregiver or a dispensary may continue to serve its qualifying patients as permitted under Title 22, chapter 558-C.

C. A marijuana establishment shall prepare and maintain documents that include procedures for the oversight of all aspects of operations and procedures to ensure accurate record keeping.

D. A marijuana establishment shall make its license available for inspection at the premises to which that license applies.

E. A marijuana establishment may not refuse an employee or investigator of the bureau the right at any time to inspect the entire licensed premises or to audit the books and records of the marijuana establishment.

F. A marijuana establishment may not employ as a manager or place in a position of management on a temporary or limited basis a person who is ineligible for a license under subsection 10, paragraph B, C or D.

14. Requirements for the operation of a retail marijuana store. The following requirements apply to the operation of a retail marijuana store.

A. Prior to making a sale of marijuana or a marijuana product, a retail marijuana store shall verify the age of every person making the purchase by checking a government-issued photographic identification card.

B. A retail marijuana store may not:

(1) Sell marijuana to an intoxicated individual as defined in section 2503, subsection 1;

(2) Sell marijuana to a person who does not qualify as a consumer except that a marijuana establishment that is also a primary caregiver or a dispensary may serve an underage person who is a qualifying patient under Title 22, chapter 558-C;

(3) Allow an underage person to enter or remain on the premises of the retail marijuana store unless the underage person is an employee of the bureau, a law enforcement officer, a firefighter, an emergency medical technician or other emergency services worker in the performance of that person's official duties or a contractor performing work on the premises that is not directly related to marijuana, such as installing or maintaining security devices or electrical wiring;

(4) Sell marijuana or marijuana products between the hours of 1 a.m. and 6 a.m.;

(5) Offer any free merchandise, rebates or gifts to a consumer;

(6) Sell marijuana or marijuana products at retail except on the premises that are licensed by the bureau; or

(7) Either directly or indirectly, by any agent or employee, travel from municipality or unorganized territory to municipality or unorganized territory, or from place to place within the same municipality or unorganized territory, selling, bartering or carrying for sale or exposing for sale marijuana or a marijuana product.

15. Licensure for the sale of liquor. The following provisions govern concurrent licensure as a retail marijuana store and for the sale of liquor. A retail marijuana store may also be a licensed liquor store if the retail marijuana store is located in separate space and meets all the requirements for a retail marijuana store. A retail marijuana store may not also be licensed as a supermarket, pharmacy, convenience store or general store.

16. Requirements for the operation of a marijuana product manufacturing facility. A marijuana product manufacturing facility shall operate in compliance with this chapter and any rules adopted by the bureau, the Department of Agriculture, Conservation and Forestry and the Department of Health and Human Services, as applicable to the form of marijuana used in the production process and the type of marijuana product that is produced at the marijuana product manufacturing facility. The bureau shall regulate marijuana product manufacturing facilities, including permitting the production of solvent-based marijuana concentrate as set forth in subsection 19 and prohibiting the use of butane or isomers of butane in the extraction process used in commercial marijuana product manufacturing. A marijuana product manufacturing facility may not sell marijuana or marijuana products to consumers acting pursuant to Title 22, chapter 558-D, to patients acting pursuant to Title 22, chapter 558-C or to primary caregivers or registered dispensaries acting pursuant to Title 22, chapter 558-C.

17. Requirements for the operation of commercial marijuana cultivation facilities. A commercial marijuana cultivation facility must comply with the following operational requirements. The bureau shall inspect commercial marijuana cultivation facilities to ensure compliance with state law and rules. The bureau shall regulate commercial marijuana cultivation facilities, including inspecting commercial marijuana cultivation facilities, regulating the use of pesticides, protecting marijuana from diversion pursuant to paragraph B and ensuring best practices for cultivation and segregation of crops pursuant to paragraph A.

A. If a commercial marijuana cultivation facility cultivates marijuana for personal use under Title 22, chapter 558-D and marijuana for medical use as allowed in Title 22, chapter 558-C, there must be a clear segregation of all cultivation, tracking and accounting delineating clear boundaries between marijuana cultivated under each provision of law.

B. A commercial marijuana cultivation facility shall adopt practices and take all necessary precautions to:

(1) Prevent marijuana from being diverted from legal cultivation, manufacture, processing, transport and use in this State to another state; and

(2) Prevent marijuana from being diverted to a use or distribution that is not allowed by this chapter or Title 22, chapter 558-D.

C. A commercial marijuana cultivation facility may not cultivate or sell marijuana derived from genetically modified seeds or from a female plant kept in a vegetative state and used only to produce cuttings or clones of the female plant.

D. A commercial marijuana cultivation facility must be accessible at any time for inspection by the bureau.

E. A commercial marijuana cultivation facility may not sell marijuana or marijuana products to consumers acting pursuant to Title 22, chapter 558-D, to patients acting pursuant to Title 22, chapter 558-D or to primary caregivers or registered dispensaries pursuant to Title 22, chapter 558-D.

F. The commercial marijuana cultivation facility shall assign a batch number or numbers for cultivated marijuana that identifies the plant or plants from which the marijuana was harvested.

18. Requirements for licensure as a marijuana transportation provider. The bureau shall issue licenses to marijuana transportation providers to allow the transportation of marijuana and marijuana products as provided in this subsection. A person may not transport marijuana or marijuana products unless the person has been issued a license for transporting marijuana and marijuana products. The bureau shall adopt rules regarding licensure for transporting marijuana and marijuana products and the requirements applicable to transportation.

A. A marijuana transportation provider shall ensure the security of shipments;

B. A marijuana transportation provider shall ensure the use of a motor vehicle licensed in the State and in compliance with motor vehicle inspection laws, which must be driven by a driver licensed under this subsection and employed by the marijuana transportation provider; and

C. A marijuana transportation provider shall keep documentation of details of a shipment in a transport manifest including the name of the marijuana transportation provider, the name and license number of the shipping marijuana establishment, the name of the marijuana product, the type of sealed packaging, the number of packages and weight and volume of each package, the departure address of the shipment, the date and time of departure, the name and license number of the destination marijuana establishment and the destination address and time of arrival.

A marijuana transportation provider shall prepare marijuana and marijuana products for shipment in a limited-access area. The marijuana and marijuana products must be packed, labeled and placed in shipping containers. The destination marijuana establishment shall document receipt of the shipment, justify the details of the transport manifest and immediately notify the shipping marijuana establishment and the marijuana transportation provider of any discrepancies between the delivered marijuana and marijuana products and the transport manifest.

19. Requirements regarding solvent-based marijuana concentrate. A marijuana product manufacturing facility shall operate in strict compliance with rules adopted by the bureau regarding the production of solvent-based marijuana concentrate. A marijuana product manufacturing facility shall:

A. Obtain certification by a licensed industrial hygienist or professional engineer that the equipment, premises and operating procedures of the marijuana product manufacturing facility are in compliance with all applicable laws, rules, fire and safety codes and electrical codes and with all codes and standards applicable to the industry;

B. Obtain a determination by a licensed industrial hygienist or professional engineer, as applied to the particular premises and manufacturing process to be used, of the maximum amount of flammable solvents that may be stored on the premises, the type of electrical equipment, gas monitoring equipment and fire suppression system that are required and whether a carbon dioxide monitoring system and a fume vent hood or exhaust system is required;

C. Retain on the premises all reports and information provided to the marijuana product manufacturing facility by the industrial hygienist or professional engineer under paragraphs A and B;

D. Use for the production of solvent-based marijuana concentrate food-grade equipment, counters and surfaces that are constructed in a manner that reduces the potential development of microbes, molds and fungi and that can be easily cleaned;

E. Provide appropriate safety and sanitary equipment and personal protective equipment to employees and, in the production room, an emergency eye-wash station;

F. Provide a professional-grade, closed-loop extraction system capable of recovering the solvent used in production;

G. Use in the extraction system food-grade or at least 99%-pure solvents;

H. Store all flammable solvents, which may not exceed the maximum amounts determined in paragraph B, and other flammable materials, chemicals and waste in accordance with all applicable laws, rules and regulations; and

I. Ensure the presence of trained personnel at all times during the production of solvent-based marijuana concentrate when pressurized equipment is required.

The bureau shall adopt rules to govern the production of solvent-based marijuana concentrate by a marijuana product manufacturing facility. The board shall modify its rules, as appropriate for safety, for a manufacturing facility that uses ethanol or isopropanol that is food grade and at least 99% pure in the production of solvent-based marijuana concentrate.

20. Requirements for licensure as a marijuana testing facility. The following requirements apply to the licensure of a marijuana testing facility.

A. A marijuana testing facility shall meet the standards adopted by rule by the bureau. The standards must be consistent with standards established by the International Organization for Standardization or a successor organization; and

B. A marijuana testing facility shall comply with requirements established by the bureau by rule regarding accepting, testing and disposing of marijuana from marijuana establishments and record-keeping management, employment practices, environmental impact and safety.

21. Notification of license expiration. At least 30 days prior to the expiration of a license issued pursuant to this chapter, the bureau shall notify the holder of the license of the expiration date and that, unless the license is renewed prior to expiration, all sales of marijuana must be terminated. Failure by the bureau to notify a licensee pursuant to this subsection does not excuse the holder of a license from being charged with operating without a license or with any other violation of this chapter.

§ 2604. Local control

Local options regarding the personal use of marijuana include the following:

1. Municipal options. A municipality may prohibit the operation of marijuana establishments, impose, levy and collect a tax on sales by a retail marijuana store and allow on-site consumption or use of marijuana and marijuana products in a retail marijuana store as provided in this subsection.

A. A municipality may prohibit the operation of one or more of the types of marijuana establishments or limit the number of marijuana establishments in the municipality through a vote of the residents of the municipality in compliance with the requirements of Title 30-A, chapter 121. A municipality that has voted to prohibit or limit the operation of any of the types of marijuana establishments shall promptly notify the bureau in writing of the prohibition or limitation and shall provide the effective date of the prohibition or limitation and a copy of the wording of the prohibition or limitation.

B. A municipality may impose, levy and collect a tax of up to 2% on the sale by a retail marijuana store of marijuana or marijuana products.

C. A municipality may allow on-site consumption or use of marijuana and marijuana products in a retail marijuana store notwithstanding Title 22, chapters 262 and 263.

2. County options. The county commissioners may prohibit the operation of one or more of the types of marijuana establishments in an unorganized territory through a vote of the county commissioners. Boards of county commissioners that have voted to prohibit the operation of any of the types of marijuana establishments shall promptly notify the bureau in writing of the prohibition and shall provide the effective date of the prohibition and a copy of the wording of the prohibition.

§ 2605. Default licensure of marijuana establishment

Under the following circumstances the municipality in which a marijuana establishment has applied to establish premises may act in the place of the bureau, consider an application and issue or renew a license or deny an application. If an application is submitted to a municipality under this section and the applicant has paid an application fee to the bureau, the bureau shall forward to the municipality the application fee.

1. Failure to issue licenses. If the bureau has not begun issuing licenses pursuant to section 2603 by January 30, 2018, an applicant may submit an application directly to the municipality in which it has applied to establish premises. If a municipality receives a complete application that complies with all of the requirements of this chapter, Title 22, chapter 558-D and rules adopted pursuant to law, the municipality shall issue a license to the applicant within 90 days of receipt of the application and notify the bureau of the issuance of the license.

2. Delay in issuing licenses. If the bureau does not issue a license to an applicant within 90 days of receipt of a complete application filed in accordance with section 2603, subsection 1 or does not notify the applicant in writing of the specific reason under law or rule for the denial within 90 days of receipt of the application, the applicant may resubmit the application directly to the municipality and the municipality may issue a license to the applicant. If a municipality receives a complete application that complies with all of the requirements of this chapter, Title 22, chapter 558-D and rules adopted pursuant to law, the municipality shall issue a license to an applicant within 90 days of receipt of the application and notify the bureau of the issuance of the license.

3. Effect. A license issued by a municipality under this section has the same effect as a license issued by the bureau in accordance with section 2602, subsection 1 and section 2603, and the licensee is not subject to regulation or enforcement by the bureau during the term of the license.

§ 2606. Research authorized

Notwithstanding the provisions of this chapter regulating marijuana, a scientific or medical researcher who has previously published peer-reviewed research may purchase, possess and securely store marijuana and marijuana products for the purposes of conducting research. A scientific or medical researcher may administer and distribute marijuana and marijuana products to a participant in research who is at least 21 years of age and who has signed and provided to the researcher a written form indicating that the participant has been fully informed of the possible results of participating in the research project and freely consents to participate.

§ 2607. Marijuana Regulation and Licensing Fund established

1. Fund established. The Marijuana Regulation and Licensing Fund, referred to in this section as "the fund," is established as an Other Special Revenue Funds account in the bureau for the purposes specified in this section.

2. Sources of fund. The State Controller shall credit to the fund:

A. All money received as a result of applications for and renewals of licensure under section 2603, subsection 1 and rules adopted by the bureau to implement this chapter;

B. Any penalties and fines established pursuant to rule and assessed for violations of this chapter;

C. All money from any other source, whether public or private, designated for deposit into or credited to the fund;

D. Revenue transferred pursuant to Title 36, section 4924, subsection 1, paragraph B; and

E. Interest earned or other investment income on balances in the fund.

3. Uses of the fund. The fund must be used for expenses of the bureau to regulate, license and inspect marijuana establishments and marijuana transportation providers and for enforcement of this chapter and the remainder must be deposited to the General Fund.

§ 2608. Marijuana Research Fund established

The Marijuana Research Fund, referred to in this section as "the fund," is established in and administered by the Department of Administrative and Financial Services as an Other Special Revenue Funds account. Balances in the fund may not lapse and must be carried forward to the next fiscal year.

1. Sources of fund. The State Controller shall credit to the fund:

A. Revenue transferred pursuant to Title 36, section 4924, subsection 1, paragraph C until January 1, 2022;

B. Any other money contributed voluntarily to the fund; and

C. Interest earned or other investment income on balances in the fund.

2. Uses of the fund. All money deposited in the fund and the earnings on that money remain in the fund to be used to provide grants for the purpose of producing peer-reviewed research on marijuana's beneficial uses and safety. Money in the fund may also be used for the necessary administrative and personnel costs associated with the management of the fund but may not be deposited in the General Fund or any other fund except as specifically provided by law.

§ 2609. Low-income Marijuana Patient Access Program Fund

The Low-income Marijuana Patient Access Program Fund, referred to in this section as "the fund," is established in and administered by the Department of Administrative and Financial Services as an Other Special Revenue Funds account. Balances in the fund may not lapse and must be carried forward to the next fiscal year.

1. Sources of fund. The State Controller shall credit to the fund:

A. Revenue transferred pursuant to Title 36, section 4924, subsection 1, paragraph G;

B. Any other money contributed voluntarily to the fund; and

C. Interest earned or other investment income on balances in the fund.

2. Uses of the fund. All money deposited in the fund and the earnings on that money remain in the fund to be used to provide grants for the purpose of reimbursing primary caregivers and dispensaries that apply for reimbursement for the costs of providing marijuana for medical purposes to low-income persons who were registered as patients pursuant to Title 22, chapter 558-C when the marijuana was provided to them. Money in the fund may also be used for the necessary administrative and personnel costs associated with the management of the fund but may not be deposited in the General Fund or any other fund except as specifically provided by law.

§ 2610. Contracts; professional services

A contract entered into, related to or arising out of the operation of a marijuana establishment or marijuana transportation provider licensed pursuant to this chapter for a purpose that is lawful under this chapter or under Title 22, chapter 558-D is fully enforceable in the courts of this State.

A person who is licensed in a professional occupation by this State is not subject to disciplinary action by a licensing board or authority for providing professional assistance to a marijuana establishment or marijuana transportation provider or to a person acting as an agent of a holder of a license under this chapter for an activity or conduct that is authorized by this chapter or by rules adopted to implement this chapter.

§ 2611. Penalties

The bureau shall adopt rules providing penalties for violations of this chapter. In adopting rules pursuant to this section the bureau shall distinguish license violations affecting public safety, license violations and license infractions and shall establish fines that vary according to the size of the marijuana establishment.

1. License violations affecting public safety. The rules must provide penalties for license violations affecting public safety that include, as appropriate to the violation, license suspension, a fine per individual violation, a fine in lieu of suspension of up to $100,000, license revocation or license restrictions.

2. License violations. The rules must provide penalties for license violations that include, as appropriate to the violation, a written warning, license suspension, a fine per individual violation, a fine in lieu of suspension of up to $50,000, license revocation or license restrictions.

3. License infractions. The rules must provide penalties for license infractions that include, as appropriate to the infraction, a verbal or written warning, license suspension, a fine per individual violation, a fine in lieu of suspension of up to $10,000 or license restrictions.

4. Aggravating or mitigating factors. The rules must take into consideration any aggravating or mitigating factors surrounding the violation.

5. Petition. The rules must provide, for all administrative offenses involving a proposed suspension, a process for the marijuana establishment to petition the bureau for permission to pay a monetary fine in lieu of or in partial satisfaction of license suspension and the criteria for the bureau to apply when evaluating the petition and determining the appropriate penalty.

§ 2612. Rulemaking

The bureau shall adopt rules to implement the provisions of this chapter. Rules adopted pursuant to this section are major substantive rules as defined by Title 5, chapter 375, subchapter 2-A. The rules must address regulation of marijuana establishments pursuant to this chapter as determined to be appropriate by the bureau through the rule-making process. The rules must address at a minimum:

1. Oversight. Oversight of licensed marijuana establishments, civil penalties for violations, procedures for suspending or terminating a license for violation of this chapter or a rule adopted pursuant to this chapter and procedures for appeals of penalties or licensing actions;

2. Application and renewal. The form and content of applications and renewal forms and associated licensing and licensing and renewal fees;

3. Preferences in licensing. The preferences in the licensure process required by section 2603, subsection 5;

4. Correction. Procedures allowing an applicant who has been denied a license to correct the reason for the denial;

5. Background checks. Procedures and timelines for background checks and appeals;

6. Transfers. Procedures for the transfer of a license, which must be substantially similar to the rules governing the transfer of a license for the sale of liquor under section 605;

7. Standards for employment. Minimum standards for employment, including requirements for background checks, restrictions against hiring underage persons and safeguards to protect against unauthorized employee access to marijuana and marijuana products;

8. Record keeping. Minimum record-keeping requirements, including the following:

A. Recording of the disposal of marijuana that is not sold;

B. For a marijuana establishment that is also a registered dispensary or a primary caregiver under Title 22, chapter 558-C, a requirement that the accounting system used by the marijuana establishment separate all funds received from the sale of marijuana for medical use pursuant to Title 22, chapter 558-C from all funds received from the sale of marijuana pursuant to Title 22, chapter 558-D; and

C. Verification of the age of a consumer. Rules developed pursuant to this paragraph may not require a consumer to provide a retail marijuana store with personal information other than government-issued photographic identification to determine the consumer's age or require the retail marijuana store to acquire and record personal information about its consumers;

9. Health and safety. Health and safety rules and standards for the manufacture of marijuana products and the cultivation of marijuana;

10. Labeling requirements. Labeling requirements for marijuana and marijuana products sold or distributed by a marijuana establishment;

11. Advertising. Restrictions on signs and the advertising and display of marijuana and marijuana products, including a prohibition on advertising reasonably considered to be aimed at underage persons; and

12. Security. Minimum security requirements, including standards to reasonably protect against unauthorized access to marijuana and marijuana products at all stages of the licensee's possession, transportation, storage and cultivation of marijuana. The security requirements may not prohibit outdoor cultivation of marijuana in an enclosed, secured space.

§ 2613. Construction

This chapter may not be construed to limit any privileges or rights of a qualifying patient, primary caregiver or registered dispensary under chapter 558-C; to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale or growing of marijuana in the workplace; to exempt a person from the laws prohibiting operating under the influence of intoxicants under Title 29-A, chapter 23; to permit the transfer of marijuana or marijuana products, with or without remuneration, to a person under 21 years of age or to allow a person under 21 years of age to purchase, possess, use, transport, grow or consume marijuana or marijuana products; or to shield a person from federal prosecution.

Sec. D-2. Rulemaking. By January 31, 2018, the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations shall adopt major substantive rules, as defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A, for the administration and the enforcement of laws regulating and licensing marijuana establishments and marijuana transportation providers pursuant to Title 28-A, chapter 111. The rules must be developed by the bureau and may not be contracted out to an entity outside the bureau. The rules may not prohibit the operation of marijuana establishments and marijuana transportation providers, either expressly or through restrictions that make the operation of marijuana establishments and marijuana transportation providers unreasonably impracticable. As used in this section, "unreasonably impracticable" means that the measures necessary to comply with the rules require such a high investment of risk, money, time or other resource or asset that the operation of a marijuana establishment or a marijuana transportation provider is not worthy of being carried out in practice by a reasonably prudent businessperson. Notwithstanding the limits on retail marijuana stores specified in Title 28-A, section 2603, subsection 8, until the initial rules of the bureau have been reviewed by the Legislature, the bureau may issue one license per municipality, but must issue one per municipality if a qualified application is received. Rules adopted pursuant to this section may not prohibit a municipality from limiting the number of each type of licensee that may operate in the municipality or from enacting reasonable regulations applicable to licensees.

Sec. D-3. Marijuana Research Fund rulemaking. By January 1, 2018, the Department of Administrative and Financial Services shall adopt major substantive rules, as defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A, to implement the provisions of Title 28-A, section 2608 regarding administration and uses of the Marijuana Research Fund. Rules adopted pursuant to this section must include:

1. Application procedures, forms, deadlines and eligibility criteria for grants;

2. Selection criteria and composition of a grant review committee, which must include researchers with expertise in medical or scientific research;

3. Criteria for awarding grants, dates for decisions of grant awards and methods for disbursement of funds;

4. Minimum record-keeping, reporting and publication requirements for persons awarded grants; and

5. Any other oversight requirements that the department determines necessary to administer the grants.

Sec. D-4. Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations processing of applications. The Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations shall begin accepting and processing applications for licenses for marijuana establishments and marijuana transportation providers under authority granted by the Maine Revised Statutes, Title 28-A, chapter 111 by January 1, 2018.

PART E

Sec. E-1. 15 MRSA §5821-A, as amended by IB 2009, c. 1, §1, is further amended to read:

§ 5821-A. Property not subject to forfeiture based on use of marijuana

Property is not subject to forfeiture under this chapter if the activity that subjects the person's property to forfeiture is medical use of marijuana and the person meets the requirements for medical use of marijuana under Title 22, chapter 558-C or is related to personal use of marijuana under Title 22, chapter 558-D. Property is not subject to forfeiture under this chapter if the activity that subjects the person's property to forfeiture is related to personal use of marijuana and the person, marijuana establishment or marijuana transportation provider is licensed by the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations under Title 28-A, chapter 111.

Sec. E-2. 17-A MRSA §1111-A, sub-§1, as amended by IB 2009, c. 1, §2, is further amended to read:

1. As used in this section the term "drug paraphernalia" means all equipment, products and materials of any kind that are used or intended for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, containing, concealing, injecting, ingesting, inhaling or otherwise introducing into the human body a scheduled drug in violation of this chapter or Title 22, section 2383, except that this section does not apply to a person who is authorized to possess marijuana for medical use pursuant to Title 22, chapter 558-C or marijuana for personal use pursuant to Title 22, chapter 558-D or activities by a marijuana establishment or marijuana transportation provider licensed under Title 28-A, chapter 111 and authorized by that chapter, to the extent the drug paraphernalia is used for that person's medical use of marijuana or personal use of marijuana or as allowed under Title 22, chapter 558-D or activities by a marijuana establishment or marijuana transportation provider licensed under Title 28-A, chapter 111 and authorized by that chapter. It includes, but is not limited to:

A. Kits used or intended for use in planting, propagating, cultivating, growing or harvesting of any species of plant which is a scheduled drug or from which a scheduled drug can be derived;

B. Kits used or intended for use in manufacturing, compounding, converting, producing, processing or preparing scheduled drugs;

C. Isomerization devices used or intended for use in increasing the potency of any species of plant that is a scheduled drug;

D. Testing equipment used or intended for use in identifying or in analyzing the strength, effectiveness or purity of scheduled drugs;

E. Scales and balances used or intended for use in weighing or measuring scheduled drugs;

F. Dilutents Dilutants and adulterants, such as quinine hydrochloride, mannitol, mannite, dextrose and lactose, used or intended for use in cutting scheduled drugs;

G. Separation gins and sifters, used or intended for use in removing twigs and seeds from, or in otherwise cleaning or refining, marijuana;

H. Blenders, bowls, containers, spoons and mixing devices used or intended for use in compounding scheduled drugs;

I. Capsules, balloons, envelopes and other containers used or intended for use in packaging small quantities of scheduled drugs;

J. Containers and other objects used or intended for use in storing or concealing scheduled drugs; and

K. Objects used or intended for use in ingesting, inhaling or otherwise introducing marijuana, cocaine, hashish or hashish oil into the human body, such as:

(1) Metal, wooden, acrylic, glass, stone, plastic or ceramic pipes with or without screens, permanent screens, hashish heads or punctured metal bowls;

(2) Water pipes;

(3) Carburetion tubes and devices;

(4) Smoking and carburetion masks;

(5) Roach clips, meaning objects used to hold burning material, such as a marijuana cigarette that has become too small or too short to be held in the hand;

(6) Miniature cocaine spoons and cocaine vials;

(7) Chamber pipes;

(8) Carburetor pipes;

(9) Electric pipes;

(10) Air-driven pipes;

(11) Chillums;

(12) Bongs; or

(13) Ice pipes or chillers.

Sec. E-3. 17-A MRSA §1111-A, sub-§§4-A and 4-B, as enacted by PL 2011, c. 464, §20, are amended to read:

4-A. Except as provided in Title 22, chapter chapters 558-C and 558-D and Title 28-A, chapter 111, a person is guilty of use of drug paraphernalia if:

A. The person trafficks in or furnishes drug paraphernalia knowing, or under circumstances when that person reasonably should know, that it will be used to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale or otherwise introduce into the human body a scheduled drug in violation of this chapter or Title 22, section 2383, and the person to whom that person is trafficking or furnishing drug paraphernalia is:

(1) At least 16 years of age. Violation of this subparagraph is a Class E crime; or

(2) Less than 16 years of age. Violation of this subparagraph is a Class D crime; or

B. The person places in a newspaper, magazine, handbill or other publication an advertisement knowing, or under circumstances when that person reasonably should know, that the purpose of the advertisement, in whole or in part, is to promote the sale of objects intended for use as drug paraphernalia. Violation of this paragraph is a Class E crime.

4-B. Except as provided in Title 22, chapter chapters 558-C and 558-D and Title 28-A, chapter 111, a person commits a civil violation if:

A. The person in fact uses drug paraphernalia to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale or otherwise introduce into the human body a scheduled drug in violation of this chapter or Title 22, section 2383. Violation of this paragraph is a civil violation for which a fine of $300 must be adjudged, none of which may be suspended; or

B. The person possesses with intent to use drug paraphernalia to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale or otherwise introduce into the human body a scheduled drug in violation of this chapter or Title 22, section 2383. Violation of this paragraph is a civil violation for which a fine of $300 must be adjudged, none of which may be suspended.

Sec. E-4. 17-A MRSA §1117, sub-§4, as enacted by PL 2009, c. 631, §3 and affected by §51, is amended to read:

4. A person is not guilty of cultivating marijuana if the conduct is expressly authorized by Title 22, chapter 558-C or 558-D or Title 28-A, chapter 111.

Sec. E-5. 17-A MRSA §1124 is enacted to read:

§ 1124. Marijuana odor

The odor of marijuana in and of itself is not a specific and articulable fact for the purpose of establishing probable cause of criminal activity and justifying a search of a person or the property of a person.

PART F

Sec. F-1. 7 MRSA §483, first ¶, as amended by PL 2011, c. 407, Pt. A, §1, is further amended to read:

For the purpose of this chapter and chapter 103, unless the term is more specifically defined, "adulterated" means made impure or inferior by adding extraneous ingredients. Goods that are prepared in a food establishments establishment that are is a licensed facilities facility under Title 22, section 2167 and that contain marijuana for medical use by a qualifying patient, pursuant to Title 22, chapter 558-C, or that are prepared in a marijuana establishment that prepares or sells edible marijuana or edible marijuana products that is licensed under Title 28-A, chapter 111 are not considered to be adulterated under this subchapter.

Sec. F-2. 22 MRSA §2152, sub-§4-A, as amended by PL 2011, c. 407, Pt. A, §2, is further amended to read:

4-A. Food establishment. "Food establishment" means a factory, plant, warehouse or store in which food and food products are manufactured, processed, packed, held for introduction into commerce or sold. "Food establishment" includes a primary caregiver, as defined in section 2422, subsection 8-A, and a registered dispensary, as defined in section 2422, subsection 6, that prepare food containing marijuana for medical use by a qualifying patient pursuant to chapter 558-C and a marijuana establishment that prepares or sells edible marijuana or edible marijuana products that is licensed under Title 28-A, chapter 111. The following establishments are not considered food establishments required to be licensed under section 2167:

A. Eating establishments, as defined in section 2491, subsection 7;

B. Fish and shellfish processing establishments inspected under Title 12, section 6101, 6102 or 6856;

C. Storage facilities for native produce;

D. Establishments such as farm stands and farmers' markets primarily selling fresh produce not including dairy and meat products;

E. Establishments engaged in the washing, cleaning or sorting of whole produce, provided the produce remains in essentially the same condition as when harvested. The whole produce may be packaged for sale, provided that packaging is not by a vacuum packaging process or a modified atmosphere packaging process;

F. Establishments that are engaged in the drying of single herbs that are generally recognized as safe under 21 Code of Federal Regulations, Sections 182 to 189. The single herbs may be packaged for sale, provided that packaging is not by a vacuum packaging process or a modified atmosphere packaging process; and

G. A primary caregiver, as defined in section 2422, subsection 8-A, conducting an activity allowed in section 2423-A for a qualifying patient who is a member of the family, as defined in section 2422, subsection 5-A, or member of the household, as defined in section 2422, subsection 5-B, of the primary caregiver.

Sec. F-3. 22 MRSA §2158, as amended by PL 2011, c. 407, Pt. A, §3 and c. 657, Pt. W, §6, is further amended to read:

§ 2158. Addition of certain substances limited

Any poisonous or deleterious substance added to any food, except where such substance is required in the production thereof or cannot be avoided by good manufacturing practice, must be deemed to be unsafe for purposes of the application of section 2156, subsection 1, paragraph B; but when such substance is so required or cannot be avoided, the Commissioner of Agriculture, Conservation and Forestry shall adopt rules limiting the quantity therein or thereon to such extent as the commissioner finds necessary for the protection of public health, and any quantity exceeding the limits so fixed must be deemed to be unsafe for purposes of the application of section 2156, subsection 1, paragraph B. While such a rule is in effect limiting the quantity of any such substance in the case of any food, such food may not, by reason of bearing or containing any added amount of such substance, be considered to be adulterated within the meaning of section 2156, subsection 1, paragraph A. In determining the quantity of such added substance to be tolerated in or on different articles of food, the commissioner shall take into account the extent to which the use of such substance is required or cannot be avoided in the production of each such article and the other ways in which the consumer may be affected by the same or other poisonous or deleterious substances. Goods that are prepared by a primary caregiver under section 2152, subsection 4-A, paragraph G or in a food establishment that is a licensed facility under section 2167 and that contain marijuana for medical use by a qualifying patient, pursuant to chapter 558-C, or that contain edible marijuana or edible marijuana products that are prepared or sold by a marijuana establishment licensed under Title 28-A, chapter 111 are not considered to be adulterated under this subchapter.

Sec. F-4. 22 MRSA §2176 is enacted to read:

§ 2176. Packaging and labeling of marijuana

A marijuana establishment may not sell edible marijuana products that are not properly packaged and labeled in compliance with this section.

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A. "Child-resistant," with regard to a package or container, means:

(1) Specially designed or constructed to be significantly difficult for a child under 5 years of age to open or obtain a toxic or harmful amount of the marijuana or marijuana producet contained therein within a reasonable time and not difficult for normal adults to use properly, but does not mean packaging that a child under 5 years of age cannot open or from which a child under 5 years of age cannot obtain a toxic or harmful amount within a reasonable time;

(2) Opaque so that the packaging does not allow the marijuana or marijuana product to be seen without opening the packaging; and

(3) Resealable for any marijuana or marijuana product intended for more than a single use or containing multiple servings.

B. "Commercial marijuana cultivation facility" means an entity licensed pursuant to Title 28-A, section 2602, subsection 1 and section 2603 to cultivate, prepare and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities and to other commerical marijuana cultivation facilities.

C. "Consumer" means a person 21 years of age or older who purchases marijuana or marijuana products for personal use by persons 21 years of age or older. "Consumer" does not include a patient or primary caregiver acting pursuant to Title 22, chapter 558-C.

D. "Container" means a sealed package in which marijuana or a marijuana product is placed for sale to a consumer and that has been labeled according to the requirements of law.

E. "Edible marijuana product" means a product that is infused with marijuana that is intended to be consumed orally, including, but not limited to, any type of food, drink or pill.

F. "Exit package" means a sealed container or package provided at the retail point of sale in which marijuana or a marijuana product already in a container is placed.

G. "Marijuana" 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 marijuana concentrate. "Marijuana" does not include industrial hemp, fiber produced from the stalks, oil, cake made from the seeds of the plant, sterilized seeds of the plant that are incapable of germination or the weight of any ingredient combined with marijuana to prepare topical or oral administrations, food, drink or any other product.

H. "Marijuana concentrate" means a concentrate of cannabinoids extracted from marijuana through the use of propylene glycol, glycerin, butter, olive oil or other typical cooking fats or other solvents.

I. "Marijuana establishment" means a marijuana product manufacturing facility or retail marijuana store.

J. "Marijuana product" means marijuana concentrate, a manufactured or produced product that contains marijuana or a marijuana-infused product that consists of marijuana and other ingredients that is intended for use or consumption, including, but not limited to, an edible marijuana product, ointment or tincture.

K. "Marijuana product manufacturing facility" means an entity licensed pursuant to Title 28-A, section 2602, subsection 1 and section 2603 to:

(1) Purchase marijuana from a commercial marijuana cultivation facility;

(2) Manufacture, prepare and package marijuana products; and

(3) Sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores.

L. "Retail marijuana store" means an entity licensed pursuant to Title 28-A, section 2602, subsection 1 and section 2603 to:

(1) Purchase marijuana from a commercial marijuana cultivation facility;

(2) Purchase marijuana and marijuana products from a marijuana product manufacturing facility; and

(3) Sell marijuana and marijuana products to consumers.

M. "THC" means tetrahydrocannabinol.

2. General requirements. The general requirements in this subsection apply to all marijuana and marijuana products sold by marijuana establishments in this State.

A. A marijuana establishment may not sell edible marijuana products that are not properly packaged and labeled according to subsection 3.

B. Each individually packaged edible marijuana product, even if made up of multiple servings, may not include more than a total of 100 milligrams of active THC.

C. A marijuana product manufacturing facility shall provide adequate refrigeration for perishable retail marijuana products that will be consumed and shall use adequate storage facilities and transport methods.

D. A marijuana product manufacturing facility shall ensure that the cannabinoid content of any edible marijuana product is homogenous.

E. An edible marijuana product must be contained in a resealable exit package before it is removed from the retail marijuana store by a consumer. The exit package must meet the requirements established by the department for the purpose of restricting consumption by minors.

F. An edible marijuana product must be clearly labeled with required information required by the department for the purposes of educating consumers about potential effects and restricting access by minors.

G. A marijuana establishment shall ensure that all marijuana and marijuana products to be sold are placed within a container prior to sale to a consumer. If the container is not child-resistant, the retail marijuana store must place the container within a child-resistant exit package.

3. Labeling requirements. All marijuana and marijuana products sold, transferred or otherwise provided to a consumer must be in a container that is labeled with all required information.

A. Labeling text on a container may not make any false or misleading statements regarding health or physical benefits to the consumer, must be no smaller than 1/16 inch, must be unobstructed and conspicuous and must be clearly written or printed in the English language.

B. A marijuana establishment may affix multiple labels to a container if the information required by these rules is not obstructed.

C. The minimum print size is 1/16 inch. The size of the characters in the net weight statement is determined by the area of the principal display panel and may be greater than 1/16 inch.

D. The label must list the cannabidiol and THC content of the marijuana or marijuana product.

E. The label must contain a list of all ingredients, including all chemical additives, including but not limited to nonorganic pesticides, herbicides and fertilizers, that were used in the cultivation and production of the marijuana or marijuana product.

F. The label must list the batch number or numbers assigned by the commercial marijuana cultivation facility to the marijuana plant or plants from which the marijuana within the container was harvested and a complete list of solvents and chemicals used in the creation of any marijuana concentrate.

G. The label must list the license number of the commercial marijuana cultivation facility where the marijuana was grown, the license number of the marijuana product manufacturing facility, conspicuously the name and license number of the retail marijuana store where the marijuana was sold, the name of the person for whom the marijuana product was produced, if any, and the date of sale. If a marijuana product was produced for an individual pursuant to chapter 558-C, the label must list the name of that individual and that individual's registry identification card number pursuant to section 2425.

H. The label must include the following statement: "This product contains marijuana and was produced without regulatory oversight for health, safety or efficacy. There may be health risks associated with the consumption of the product."

I. For a marijuana product, the label must include a list of ingredients, the product identity and a net weight statement.

J. If nutritional claims are made on the label of any marijuana product, the label must contain a nutrition facts panel.

4. False and misleading statements prohibited. A marijuana establishment may not display upon or in proximity to the licensed premises, or in referring to the licensed premises, use, publish or exhibit, or permit to be displayed, used, published or exhibited, any sign, advertisement, display, notice, symbol or other device that is misleading or deceptive or is false advertising or inconsistent with ordinances of the municipality in which the licensee operates.

Sec. F-5. 26 MRSA §772, sub-§2, as amended by PL 2009, c. 631, §47 and affected by §51, is further amended to read:

2. Rules; list of occupations. The director shall adopt rules to develop and maintain a list of occupations not suitable for employment of a minor. The rules must conform as far as practicable to the child labor provisions of the federal Fair Labor Standards Act of 1938, 29 United States Code, Section 212 and any associated regulations. The rules must also contain provisions prohibiting the employment of minors in places having nude entertainment and in registered dispensaries of marijuana for medical use authorized under Title 22, chapter 558-C and in marijuana establishments licensed under Title 28-A, chapter 111.

Sec. F-6. Planning for workforce development in the marijuana industry. The Department of Labor, in consultation with the State Workforce Investment Board, shall review the workforce development needs of the marijuana industry established in response to the legalization of the personal use of marijuana for adults 21 years of age and older pursuant to the Maine Revised Statutes, Title 22, chapter 558-D. The department and State Workforce Investment Board shall review and make recommendations on workforce development needs within the marijuana industry as licensed under Title 28-A, chapter 111, including, but not limited to, training and certification of workers in self-employment, microenterprise, small business and large business that meet the definition of marijuana establishments as defined in Title 28-A, section 2601, subsection 7. The department shall report its findings and recommendations to the joint standing committee of the Legislature having jurisdiction over labor, commerce, research and economic development matters by April 1, 2017.

PART G

Sec. G-1. 25 MRSA §2003, sub-§4, as amended by PL 1995, c. 694, Pt. D, §51 and affected by Pt. E, §2, is further amended to read:

4. Good moral character. The issuing authority in judging good moral character shall make its determination in writing based solely upon information recorded by governmental entities within 5 years of receipt of the application, including, but not limited to, the following matters:

A. Information of record relative to incidents of abuse by the applicant of family or household members, provided pursuant to Title 19-A, section 4012, subsection 1;

B. Information of record relative to 3 or more convictions of the applicant for crimes punishable by less than one year imprisonment or one or more adjudications of the applicant for juvenile offenses involving conduct that, if committed by an adult, is punishable by less than one year imprisonment;

C. Information of record indicating that the applicant has engaged in reckless or negligent conduct; or

D. Information of record indicating that the applicant has been convicted of or adjudicated as having committed a violation of Title 17-A, chapter 45 or Title 22, section 2383, or adjudicated as having committed a juvenile crime that is a violation of Title 22, section 2383 or a juvenile crime that would be defined as a criminal violation under Title 17-A, chapter 45 if committed by an adult.

Conduct allowed by Title 22, chapter 558-C or 558-D may not be the basis for a finding of a lack of good moral character.

PART H

Sec. H-1. 5 MRSA §12004-I, sub-§36-F is enacted to read:

36-F.

Human Services

Youth Marijuana Prevention and Control Advisory Council

Expenses/Legislative Per Diem for Nonsalaried Employee Members

22 MRSA §282

Sec. H-2. 22 MRSA c. 102-A is enacted to read:

CHAPTER 102-A

YOUTH MARIJUANA PREVENTION AND CONTROL

§ 281. Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1. Advisory council. "Advisory council" means the Youth Marijuana Prevention and Control Advisory Council.

2. Marijuana. "Marijuana" means all parts of all species of the plant of the genus cannabis whether growing or not, including the leaves, stems, flowers and seeds, 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 marijuana concentrate. "Marijuana" does not include industrial hemp, fiber produced from the stalks, oil, cake made from the seeds of the plant, sterilized seeds of the plant that are incapable of germination or the weight of any ingredient combined with marijuana to prepare topical or oral administrations, food, drink or other product.

3. Marijuana product. "Marijuana product" means marijuana in any form and any material or device used in the smoking, chewing, eating, vaporizing or other method of marijuana consumption, including cigarette papers and pipes.

4. Program. "Program" means the Youth Marijuana Prevention and Control Program.

§ 282. Youth Marijuana Prevention and Control Program

1. Program established. The Youth Marijuana Prevention and Control Program is established in the department. The purpose of the program is to prevent persons under 21 years of age from using marijuana products except in accordance with chapter 558-C. The department shall administer the program with the review and advice provided by the council and may contract for professional services to carry out the program.

The program includes the following components:

A. An ongoing, major media campaign to:

(1) Discourage persons under 21 years of age from using marijuana products;

(2) Encourage public acceptance of smoke-free environments; and

(3) Reduce youth consumption of marijuana products;

B. Grants for funding community-based programs aimed at youth marijuana prevention and control, including funding marijuana prevention and control education for those school administrative units that choose to offer such programs to kindergarten to grade 12 students, and for community-based enforcement of state marijuana control laws, including the law prohibiting sales to persons under 21 years of age, and for cessation services;

C. Procedures for monitoring and evaluating the program, including:

(1) Monitoring and maintaining the program's effectiveness through an evaluation of each component;

(2) Assessing the prevalence of the use of marijuana products and knowledge about and attitudes towards such use on a statewide and community basis; and

(3) Recommending changes to eliminate programs that are not effective and focus on initiatives that are having a measurable effect on youth consumption of marijuana products; and

D. In conjunction with law enforcement and other state and federal agencies, increased law enforcement efforts to increase compliance with laws regarding the transportation, distribution and sale of marijuana products.

2. Youth Marijuana Prevention and Control Advisory Council. The Youth Marijuana Prevention and Control Advisory Council is established under Title 5, section 12004-I, subsection 36-F to review the program.

A. The advisory council shall provide advice to the department and shall work to ensure coordination of the program with relevant nonprofit and community agencies, the department, the Department of Education and other state agencies. The advisory council consists of 9 members, appointed as follows:

(1) Two members who are public health officials, appointed by the Governor;

(2) Two representatives of nonprofit organizations involved in seeking to reduce youth consumption of marijuana products in the State. One member must be appointed by the President of the Senate, and one member must be appointed by the Speaker of the House of Representatives;

(3) One member who has experience designing and implementing issue-oriented public health media campaigns, appointed by the Governor;

(4) Two members who have experience designing and implementing community-based education or cessation programs for the prevention of youth consumption of marijuana products. One member must be appointed by the President of the Senate, and one member must be appointed by the Speaker of the House of Representatives; and

(5) Two members of the public, who must be appointed jointly by the President of the Senate and the Speaker of the House of Representatives.

B. Members shall serve for 3-year terms, except that 5 of the initial members must be appointed for 2-year terms. Members whose terms have expired or are about to expire may be reappointed. If a vacancy occurs, the appointing authority for the vacant seat shall appoint a new member.

C. The advisory council shall choose a chair from among its members and establish its procedures for meetings, consideration of issues and reaching decisions.

D. The department shall provide staff assistance to the advisory council.

E. The advisory council shall report annually on the program to the Governor and the Legislature by December 1st. The report of the advisory council may include recommendations or proposed legislation to further the purposes of the program.

F. Each member of the advisory council who is not a salaried employee is entitled to compensation as provided in Title 5, section 12004-I, subsection 36-F, following approval of expenses by the Director of the Bureau of Health.

Sec. H-3. Convening the Youth Marijuana Prevention and Control Advisory Council. Appointments to the Youth Marijuana Prevention and Control Advisory Council under the Maine Revised Statutes, Title 22, section 282, subsection 2 must be made by March 15, 2017. When the appointment of all members is complete, the Governor or the Governor's designee shall convene the first meeting of the advisory council no later than April 15, 2017.

PART I

Sec. I-1. Statutory referendum procedure; submission at election; form of question; effective date. This Act must be submitted to the legal voters of the State at a statewide election held in November 2016 following passage of this Act. The municipal officers of this State shall notify the inhabitants of their respective cities, towns and plantations to meet, in the manner prescribed by law for holding a statewide election, to vote on the acceptance or rejection of this Act by voting on the following question:

"Do you favor allowing adults 21 years of age and older to engage in the personal use of marijuana, regulating commercial marijuana-related activities and imposing a tax on the commercial cultivation and sale of marijuana?"

The legal voters of each city, town and plantation shall vote by ballot on this question and designate their choice by a cross or check mark placed within a corresponding square below the word "Yes" or "No." The ballots must be received, sorted, counted and declared in open ward, town and plantation meetings and returns made to the Secretary of State in the same manner as votes for members of the Legislature. The Governor shall review the returns. If a majority of the legal votes are cast in favor of this Act, the Governor shall proclaim the result without delay and this Act becomes effective 30 days after the date of the proclamation.

The Secretary of State shall prepare and furnish to each city, town and plantation all ballots, returns and copies of this Act necessary to carry out the purposes of this referendum.

SUMMARY

This bill addresses the use, possession, cultivation, manufacturing, testing, transportation and sale of marijuana and marijuana products.

The bill legalizes the possession of up to an ounce of marijuana for a person 21 years of age and older, taxes sales of marijuana and regulates the marijuana industry, which in the language of the bill is conducted by marijuana establishments.

In Part A the bill imposes the marijuana excise tax of 15% on the sale or transfer of marijuana from a licensed commercial marijuana cultivation facility to a licensed retail marijuana store and to a licensed marijuana product manufacturing facility. The bill imposes a sales tax of 10% on marijuana and marijuana products sold at retail marijuana stores. The bill provides for the distribution of marijuana excise and sales tax revenues. The bill requires an annual report to the joint standing committees of the Legislature having jurisdiction over appropriations and financial affairs and taxation matters on excise and sales tax receipts and the distribution of the revenues. The bill directs the Department of Administrative and Financial Affairs, Bureau of Revenue Services to review methods for ensuring that all nonexempt marijuana sold in the State is assessed and to report its findings and recommendations to the joint standing committee of the Legislature having jurisdiction over taxation matters and authorizes the committee to submit legislation to the First Regular Session of the 128th Legislature.

In Part B the bill updates the law relating to marijuana that generally prohibits possession of marijuana to exempt possession by certain people and of certain amounts from prosecution as a crime. The bill makes possession of up to 2 1/2 ounces of marijuana a civil violation for persons less than 21 years of age, punishable by a fine of up to $100, with an option of court-ordered community service and possible expungement after one year. The bill legalizes possession of up to one ounce of marijuana by a person 21 years of age or older. The bill makes possession of over one ounce but under 2 1/2 ounces of marijuana by a person 21 years of age or older a civil violation, punishable by a fine of up to $100, with an option of court-ordered community service and possible expungement after one year.

In Part C the bill enacts the Personal Use of Marijuana Act, allowing a person 21 years of age or older to use, purchase from a retail marijuana store or possess up to one ounce of marijuana or marijuana products and marijuana accessories. The bill allows a person 21 years of age or older to transfer or furnish, without remuneration, up to one ounce of marijuana and up to 6 marijuana seedlings to another person 21 years of age or older. The bill allows a person 21 years of age or older to possess, grow, cultivate or process up to 6 marijuana plants and to possess the marijuana products produced from the marijuana plants on the premises where the plants were grown. The bill allows a person 21 years of age or older to use marijuana in a nonpublic place, including a private residence. The bill allows a person 21 years of age or older to cultivate marijuana at home. The bill addresses the relationship of the provisions in the bill to state laws regarding marijuana, smoking tobacco products, operation of motor vehicles, watercraft, snowmobiles and all-terrain vehicles and hunting. The bill addresses marijuana under federal law and on federal property. The bill directs that a person who consumes or uses marijuana or marijuana products in accordance with the law may not be denied parental rights and responsibilities for a minor child because of that use unless the person's behavior creates an unreasonable danger to the health or welfare of the minor child. The bill provides similar protections with regard to the Child and Family Services and Child Protection Act.

In Part D the bill requires the Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services to enforce the laws and rules relating to the manufacturing, processing, labeling, storing, transporting, testing and selling of marijuana and marijuana products by marijuana establishments and marijuana transportation providers and to administer the laws relating to licensure, regulation and collection of taxes from marijuana establishments. The bill specifies authorized activities for marijuana establishments, requirements for record keeping, restrictions on access for persons under 21 years of age, procedures for investigations, disciplinary procedures and procedures for license suspension. The bill establishes procedures for licensing marijuana establishments, which include commercial marijuana cultivation facilities, marijuana testing facilities, marijuana product manufacturing facilities and retail marijuana stores, and marijuana transportation providers. The bill specifies general licensing requirements for marijuana establishments and marijuana transportation providers and general operational requirements. The bill includes specific requirements for the manufacturing of solvent-based marijuana concentrate by marijuana product manufacturing facilities. The bill requires the bureau to adopt rules required for implementation and designates the rules as major substantive rules. The bill requires the bureau to issue an annual report that contains information on rulemaking, licensing and inspections and statistical data on youth consumption and perceptions of safety of marijuana, tobacco, alcohol and controlled substances. The bill authorizes the joint standing committees of the Legislature having jurisdiction over health and human services matters, taxation matters and alcoholic beverages matters to submit legislation to address issues related to the report. The bill contains provisions allowing for local control with regard to marijuana establishments, including allowing a sales tax of up to 2% on sales by retail marijuana stores of marijuana and marijuana products. The bill provides for licensure by default by a municipality if the bureau delays issuing licenses beyond January 30, 2018. The bill establishes the Marijuana Regulation and Licensing Fund to pay the bureau's expenses, allows researchers access to marijuana and provides for access to marijuana for participants in research. The bill provides rules of construction for the provisions regarding marijuana establishments and marijuana transportation providers, provides for the validity and enforceability of contracts and addresses professional licensure for professional occupations. The bill establishes the Marijuana Research Fund to provide research grants and the Low-income Marijuana Patient Access Program Fund to reimburse caregivers and dispensaries for the costs of providing medical marijuana to low-income persons. The bill requires the bureau to adopt major substantive rules by January 31, 2018. The bill requires the bureau to begin accepting and processing applications for marijuana establishments and marijuana transportation providers by January 1, 2018.

In Part E the bill protects property from forfeiture based on the personal use of marijuana law. The bill provides that the odor of marijuana alone does not create probable cause of criminal activity.

In Part F the bill amends the laws on the preparation of foods to allow for food containing marijuana and marijuana products to be prepared by marijuana establishments. The bill amends the Maine Food Law to include in the definition of "food establishment" a marijuana establishment that prepares edible marijuana or an edible marijuana product and provides that food containing marijuana produced by a marijuana establishment is not considered adulterated. The bill amends the law on adulterated food to specify that goods that contain marijuana and are prepared for sale in a retail marijuana establishment pursuant to Title 28-A, chapter 111 are not to be considered adulterated food. The bill enacts a new section in the Maine Food Law that imposes requirements on marijuana establishments that sell edible marijuana products with regard to the packaging and labeling of marijuana and marijuana products and prohibits misleading, false or deceptive advertising or advertising that is inconsistent with local laws and regulations in the municipality in which the marijuana establishment operates. The bill amends the law on employment of minors to require the director of the Bureau of Labor Standards in the Department of Labor to adopt rules prohibiting the employment of minors in marijuana establishments licensed pursuant to Title 28-A, chapter 111. The bill directs the Department of Labor, in consultation with the State Workforce Investment Board, to review and make recommendations on workforce development needs, including training and certification, and to report to the joint standing committee of the Legislature having jurisdiction over labor, commerce, research and economic development matters by April 1, 2017.

In Part G the bill amends the law on the criteria for issuing a permit to carry concealed handguns to provide that conduct allowed under the law on medical use of marijuana under Title 22, chapter 558-C and conduct allowed under the law on personal use of marijuana under Title 22, chapter 558-D may not be the basis for a finding of a lack of good moral character.

In Part H the bill establishes in Title 5, chapter 379 the Youth Marijuana Prevention and Control Advisory Council. The bill establishes the Youth Marijuana Prevention and Control Program to prevent youth from using marijuana and marijuana products except for the medical use of marijuana in accordance with Title 22, chapter 558-C. The program consists of a major media campaign, grants for community-based programs, procedures for monitoring and evaluating the program and, in conjunction with law enforcement and other state and federal agencies, increased law enforcement efforts to increase compliance with laws regarding the transportation, distribution and sale of marijuana and marijuana products. The bill provides for the duties of the Youth Marijuana Prevention and Control Advisory Council, which include advising the Department of Health and Human Services and working to ensure coordination of the program with nonprofit and community agencies, the department, the Department of Education and other state agencies. The bill specifies that the members of the advisory council are appointed by the Governor, the President of the Senate and the Speaker of the House of Representatives. The bill requires that the initial appointments to the advisory council must be made by March 15, 2017 and that the first meeting of the advisory council must be held by April 15, 2017.

In Part I the bill provides for a referendum to approve the legislation. This procedure requires that the bill, if passed into law and enacted, must be submitted to the voters of the State in a statewide election in November 2016.

HP0935 LD 1380	Session - 127th Maine Legislature		LR 10 Item 1
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