DRAFT Cannabis Regulation Bill

8/13/2019 DRAFT Cannabis Regulation Bill

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An Act To Align Maine's Marijuana Laws with the Guidelines GoverningTaxation and Regulation Issued by the Federal Government

LR: 2329

Preamble. Whereas, the legislature determines that the safety of ourcommunities, and preventing minors from accessing marijuana is a top

priority; and

Whereas, the legislature recognizes the policy of prohibition has had adeleterious effect on society, while financially rewarding cartels andcriminals, and increasing violent crime; and

Whereas, the US Department of Justice has issued specific guidelinesunder which states may set up a taxation and regulation system forresponsible adult use; and

Whereas, decriminalizing responsible adult cannabis use would allow statelaw enforcement resources to be focused on violent and property crimes; and

Whereas, the regulation of cannabis will generate new state and local taxrevenue for education, health care, research, and substance abuse prevention;and

Whereas, the regulation of cannabis in Maine will take cannabis out of thehands of illegal drug organizations and bring it under a tightly regulated,state-licensed system similar to that for controlling alcohol; and

Whereas, the legislature does not intend to shield any individual or entityfrom prosecution under federal law;


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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

CANNABIS TAX

4921. Definitions

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

1. Cannabis. "Cannabis" 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 plantand every compound, manufacture, salt, derivative, mixture or preparation of the plant,its seeds or its resin including cannabis concentrate. "Cannabis" does not includeindustrial hemp, fiber produced from the stalks, oil, cake made from the seeds of theplant, sterilized seed of the plant that is incapable of germination or the weight of anyingredient combined with cannabis to prepare topical or oral administrations, food, drinkor any other product. Cannabis does not include industrial hemp, nor does it include fiberproduced from the stalks, oil or cake made from the seeds of the plant, sterilized seed ofthe plant which is incapable of germination, or the weight of any other ingredientcombined with cannabis to prepare topical or oral administrations, food, drink or otherproduct.

2. Commercial cannabis cultivation facility. "Commercial cannabiscultivation facility" means an entity licensed to cultivate, prepare and package cannabisand sell cannabis to retail cannabis stores, to cannabis product manufacturing facilitiesand to other cannabis cultivation facilities, but not to consumers. The cultivation facilitymay not be larger than 30,000 square feet.

3. Cannabis establishment. "Cannabis establishment" means a commercialcannabis cultivation facility, cannabis testing facility, cannabis product manufacturingfacility or retail cannabis store.

4. Cannabis product manufacturing facility. "Cannabis productmanufacturing facility" means an entity licensed to:

A. Purchase cannabis from a commercial cannabis cultivation facility licensed bythe State of Maine;

B. Manufacture, prepare and package cannabis products; or


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C. Sell cannabis and cannabis products to other cannabis product manufacturingfacilities and to retail cannabis stores, but not to consumers.

5. Cannabis products. "Cannabis products" means concentrated cannabisand products that consist of cannabis and other ingredients and are intended for use orconsumption, including, but not limited to, edible products, ointments and tinctures.

6. Cannabis testing facility. "Cannabis testing facility" means an entitylicensed to analyze and certify the safety and potency of cannabis.

7. Retail cannabis store. "Retail cannabis store" means an entity licensed topurchase cannabis from a commercial cannabis cultivation facility licensed by the Stateof Maine and cannabis and cannabis products from a cannabis product manufacturingfacility licensed by the State of Maine and to sell cannabis and cannabis products toconsumers.

8. Minor.Minor means any person under the age of 21.

9. Bureau. "Bureau" means the Alcoholic Beverages, Cannabis and LotteryOperations within the Department of Administrative and Financial Services pursuant tosection 2430-J.

4922. Excise tax on cannabis

1. Rate of excise tax. An excise tax is imposed on the sale or transfer ofcannabis from a commercial cannabis cultivation facility to a retail cannabis store orcannabis product manufacturing facility. Each commercial cannabis cultivation facilityshall pay an excise tax at the rate of 15 percent, with a minimum floor of $1.50 per gram,

on cannabis that is sold or transferred from a commercial cannabis cultivation facilitypursuant to Title 22, chapter 558-D.

3. Returns; payment of tax; penalty. A commercial cannabis cultivationfacility subject to the licensing requirement of Title 22, section 2430-K shall file, on orbefore the last day of each month, a return on a form prescribed and furnished by theassessor together with payment of the tax due under this chapter. The return must reportall cannabis products held, purchased, or manufactured or shipped or transported to aretail cannabis store or cannabis product manufacturing facility within the State duringthe preceding calendar month. A commercial cannabis cultivation facility shall keep acomplete and accurate record at its principal place of business to substantiate all receiptsand sales of cannabis products.


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The return must include further information as the assessor may prescribe and must showa credit for any cannabis products exempted as provided in subsection 5. Records must bemaintained to substantiate the exemption. Tax previously paid on cannabis products thatare returned to a cannabis establishment because the product has become unfit for use,sale or consumption and for cannabis products that are returned to a commercial cannabis

cultivation facility that are subsequently destroyed by the commercial cannabiscultivation facility may be taken as a credit on a subsequent return. The assessor mayeither witness the destruction of the product or may accept another form of proof that theproduct has been destroyed by the commercial cannabis cultivation facility.

4. Failure to make payments. The Bureau shall promulgate rules toaddress the scenario of a commercial cannabis cultivation facility failing to make taxpayments as required by this section, with penalties up to permanently revoking thecommercial cannabis cultivation facility's license.

5. Exemption. The tax on cannabis imposed pursuant to this section may not

be levied on cannabis sold by nonprofit dispensaries or registered caregivers to qualifyingpatients and primary caregivers pursuant to Title 22, chapter 558-C.

6.Rate Review.The bureau shall review the tax levels established under thischapter annually and make recommendations to the legislature as appropriateregarding adjustments that would further the goal of discouraging use whileundercutting illegal market prices.

4923. Sales Tax on Cannabis Products

1. Rate of Sales Tax. In addition to the tax imposed pursuant to section 4922, a

10 percent sales tax will also be applied to the sale of cannabis and cannabis productssold at licensed retail cannabis stores.

2. Limitations on Sales Tax The maximum tax rate that may be imposedpursuant to this section is 10 percent. On or after January 30th, 2016 the MaineLegislature may, by a bill enacted by the Maine Legislature and signed into law by thegovernor, establish a tax rate to be imposed pursuant to this section that is lower than 10percent of the sale of cannabis or cannabis products from a retail cannabis store. TheMaine Legislature may also raise the sales tax rate to be imposed after establishing a taxrate lower than 10 percent except that in no event shall the General Assembly increasethe tax rate above 10 percent of the sale.

3.Exemption. The tax on cannabis imposed pursuant to this section may not belevied on cannabis sold by nonprofit dispensaries or registered caregivers to qualifyingpatients and primary caregivers pursuant to Title 22, chapter 558-C.


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4.Rate Review.The bureau shall review the tax levels established under thischapter annually and make recommendations to the legislature as appropriateregarding adjustments that would further the goal of discouraging use whileundercutting illegal market prices.

4924. Application of Tax Revenues

1.Application of Excise Tax Revenue.A.Drug Recognition Experts.$1 million of revenue from the tax imposed

by section 4922 shall be used to increase the number of DrugRecognition Experts throughout the state. This section is repealedJanuary 1, 2018.

B.General Fund. Thereafter, revenues derived from the tax imposed bysection 4922 must be credited to a General Fund suspense account.

C.Bureau: On or before the last day of each month, the State Controllershall transfer 10 percent of the revenues received by the assessor duringthe preceding month pursuant to the tax imposed by section 4922 to theCannabis Regulation and Licensing Fund established under Title 22,section 2430-M.

D.Research.Until January 1, 2022, on or before the last day of each month,the State Controller shall transfer 5 percent of the revenues received bythe assessor during the preceding month pursuant to the tax imposed bysection 4922 to the Cannabis Research Fund established under Title 22,section 2430-Q.

E.Addiction Treatment.On or before the last day of each month, the StateController shall transfer 10 percent of the revenues received by theassessor during the preceding month pursuant to the tax imposed bysection 4922 to the Department of Substance Abuse for the purpose ofproviding addiction treatment services.

F.Marijuana Youth Prevention and Control Program.On or before thelast day of each month, the State Controller shall transfer 5 percent of therevenues received by the assessor during the preceding month pursuant tothe tax imposed by section 4922 to the Bureau of Health for the purposeof an ongoing public awareness campaign to reduce youth marijuana,alcohol and tobacco consumption as outlined in Part H.

G.Underage Sales Prevention.On or before the last day of each month, theState Controller shall transfer 5 percent of the revenues received by theassessor during the preceding month pursuant to the tax imposed bysection 4922 to the Maine Sheriffs Association for the purpose ofenforcement checks to deter underage sales.


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H.Low Income Medical Marijuana Patient Access Program.On or beforethe last day of each month, the State Controller shall transfer 5 percent ofthe revenues received by the assessor during the preceding monthpursuant to the tax imposed by section 4922 to the Low Income MedicalMarijuana Patient Access Program. On or before the last day of each

month, the State Controller shall transfer the remainder of the revenues tothe General Fund as established in 2430-R.

2.Application of Sales Tax Revenue. Revenues derived from the sales taximposed by section 4923 must be credited to a General Fund suspenseaccount.

A.Bureau. On or before the last day of each month, the State Controllershall transfer 10 percent of the revenues received by the assessor duringthe preceding month pursuant to the tax imposed by section 4923 to theCannabis Regulation and Licensing Fund established under Title 22,section 2430-M.

B.Municipal Governments.On or before the last day of each month, theState Controller must also transfer an amount equal to 5 percent of thegross retail cannabis sales tax imposed by section 4923 to localgovernments. The city or town share will be apportioned according to thepercentage that retail cannabis and cannabis product sales revenuecollected within the boundaries of the city or town bears to the total retailcannabis and cannabis product sales tax. The county share shall beapportioned according to the percentage that retail cannabis and cannabisproduct sales tax revenue collected in the unincorporated area of thecounty bears to total retail cannabis and cannabis product sales.

C.Fund for a Healthy Maine.On or before the last day of each month, theState Controller shall transfer 25 percent of the revenues received by theassessor during the preceding month pursuant to the tax imposed bysection 4922 to the Fund for a Healthy Maine Drugs for the ElderlyProgram.

D.Public School Construction.On or before the last day of each month, theState Controller shall transfer 10 percent of the revenues received by theassessor during the preceding month pursuant to the tax imposed bysection 4922 to fund public school construction.

3. Medical Marijuana.Nothing in this section should be construed to applyto medical marijuana patients, registered dispensaries or registeredcaregivers as established in the Medical Marijuana Act

4926. Annual report

The bureau shall report annually beginning January 30, 2016 the amount of taxrevenue collected pursuant to section 4922 and the amount distributed to each fund


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pursuant to section 4923 to the joint standing committee of the Legislature havingjurisdiction over appropriations and financial affairs and the joint standing committee ofthe Legislature having jurisdiction over taxation matters.

Sec. A-2. Review and report recommendations. The Department ofAdministrative and Financial Services, Bureau of Revenue Services shall review methods

for ensuring that all cannabis that is sold in the State is assessed, except cannabis that isexempt pursuant to the Maine Revised Statutes, Title 36, section 4922, subsection 5. Thebureau shall report its findings and recommendations, including any necessarylegislation, to the Joint Standing Committee on Taxation by February 15, 2015. The JointStanding Committee on Taxation is authorized to submit a bill to the First RegularSession of the 127th Legislature based on the subject matter of the report.

PART B

Sec. B-1. 22 MRSA 2383, sub-1, is repealed.

Sec. A 40 MRSA 1

Chapter 1 General Provisions

1. Cannabis and Minors. Except as provided in chapter 22 MRSA 2423558-C, a person under 21 years of age may not possess cannabis.

A.A person under 21 years of age who possesses a usable amount of cannabiscommits a civil violation for which a fine of up to $100 may be adjudged. If no

other violation of cannabis possession is committed within one year, the recordshall be expunged with no remaining record.

B.A judge, as an alternative to or in addition to the civil fines specified in paragraphA, may assign the minor to perform specified work for the benefit of the State,the municipality or other public entity or a charitable institution.

2. Medical Marijuana Act. Nothing in this chapter should be construed toapply to medical marijuana patients, registered dispensaries or registered caregivers asestablished in 22 MRSA 2423.


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PART C

Sec. C-1. 40 MRSA is enacted to read:

CHAPTER 2

CANNABIS REGULATION ACT

1-A. Short title

This chapter may be known and cited as the Cannabis Regulation Act.

1-B. Definitions


1. Bureau. "Bureau" means the Alcoholic Beverages, Cannabis and Lottery

Operations within the Department of Administrative and Financial Services pursuant tosection 2430-J.

2. Consumer. "Consumer" means a person 21 years of age or older whopurchases cannabis or cannabis products for personal use by persons 21 years of age orolder, but not for resale to others.

3. Department. "Department" means the Department of Administrative andFinancial Services.

4. Licensee. "Licensee" means any individual, partnership, corporation, firm,association or other legal entity holding a cannabis establishment license within the State.

5. Locality. "Locality" means a municipality or, in reference to a location in theunorganized territory, the county in which that locality is located.

6. Local Government. "Local Government" means a county, municipality, orcity and county.

7. Cannabis. "Cannabis" means all parts of the plant of the genus cannabiswhether growing or not, the seeds thereof, the resin extracted from any part of the plantand every compound, manufacture, salt, derivative, mixture or preparation of the plant,its seeds or its resin including cannabis concentrate. "Cannabis" does not include

industrial hemp, fiber produced from the stalks, oil, cake made from the seeds of theplant, sterilized seed of the plant that is incapable of germination or the weight of anyingredient combined with cannabis to prepare topical or oral administrations, food, drinkor any other product.


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8. Cannabis accessories. "Cannabis accessories" means equipment, productsor 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 cannabis or for ingesting, inhaling or otherwiseintroducing cannabis into the human body.

9. Cannabis establishment. "Cannabis establishment" means a commercialcannabis cultivation facility, cannabis testing facility, cannabis product manufacturingfacility or retail cannabis store.

10. Commercial cannabis cultivation facility. "Commercial Cannabiscultivation facility" means an entity licensed to cultivate, prepare and package cannabisand sell cannabis to retail cannabis stores, to cannabis product manufacturing facilitiesand to other cannabis cultivation facilities, but not to consumers. The commercial

cultivation facility may not be larger than 30,000 square feet.

11. Cannabis product manufacturing facility. "Cannabis productmanufacturing facility" means an entity licensed to:

A. Purchase cannabis;

B. Manufacture, prepare and package cannabis products; or

C. Sell cannabis and cannabis products to other cannabis product manufacturingfacilities and to retail cannabis stores, but not to consumers.

12. Cannabis products. "Cannabis products" means concentrated cannabis

and products that consist of cannabis and other ingredients and are intended for use orconsumption, including, but not limited to, edible products, ointments and tinctures.

13. Cannabis testing facility. "Cannabis testing facility" means an entitylicensed to analyze and certify the safety and potency of cannabis.

14. Minor. "Minor" means a person under 21 years of age.

15. Retail cannabis store. "Retail cannabis store" means an entity licensedto purchase cannabis from a commercial cannabis cultivation facility; and cannabis andcannabis products from a cannabis product manufacturing facility; and to sell cannabis

and cannabis products to consumers.

16. Seedling. "Seedling" means a cannabis plant that is not in a flowering state.

17. Qualifying Application. Qualifying Application means a licenseapplication that meets the standards set forth in the rules promulgated by the Bureau.


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1-C. Exemption from criminal and civil penalties, seizure or forfeiture

Notwithstanding Title 17-A, chapter 45 or any other provision of law to the contraryand except as provided in this chapter, the actions specified in this chapter are legal underthe laws of this State and do not constitute a civil or criminal offense under the laws ofthis State or the law of any political subdivision within this State or serve as a basis forseizure or forfeiture of assets under state law.

This chapter shall not be read to shield any individual, partnership, corporation, firm,association or other legal entity from federal prosecution.

1-D. Personal use of cannabis

1. Personal use of cannabis. An adult over the age of 21:

A. Use, possess or transport cannabis accessories and up to 2 1/2 ounces ofcannabis;

B. Transfer or furnish, without remuneration, up to 2 1/2 ounces of cannabis andup to 6 cannabis seedlings to a person who is 21 years of age or older;

C. Possess, grow, cultivate, process or transport up to 6 cannabis plants,including seedlings, and possess the cannabis produced by the cannabis plants onthe premises where the plants were grown; and

D. Purchase up to 2 1/2 ounces of cannabis, up to 6 cannabis seedlings andcannabis accessories from a retail cannabis store.

2.Home Cultivation. Home cultivation is authorized for adults over the age of 21 ifthey meet the following:

A. Restrictions on Home Cultivation. The following provisions apply to thecultivation of cannabis for personal use by a person who is 21 years of age orolder.

1. A person may cultivate up to 6 flowering cannabis plants, at thatperson's place of residence, on property owned by that person or onanother person's property with the permission of the owner of the otherproperty.

2. A person who elects to cultivate cannabis shall take reasonableprecautions to ensure the plants and cannabis products are secure fromunauthorized access or access by a person under 21 years of age.Reasonable precautions include, but are not limited to, cultivatingcannabis in a fully enclosed, locked indoor or outdoor area, which aperson under 21 years of age does not reasonably have access.


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3. Cannabis cultivation for medical use is not considered cultivation forpersonal use under this chapter and is governed by chapter 558-C.

B. Zip ties required. Except as otherwise provided in this Part, beginning 20days after the Agricultural commissioner has made zip ties available pursuant tothis Part, an individual may not grow, transport, or possess a cannabis plant

without a valid home cultivation zip tie affixed to the plant. Each day a personviolates this subsection, that person commits a civil violation for which a fine of$50 per plant must be imposed.

C. Exemptions.

1. This section does not apply to the cultivation of medical cannabispursuant to chapter 558-C.

2. This section does not apply to cultivation by a cannabis establishmentlicensed pursuant to chapter 723.

3. This section does not apply if the Agricultural commissioner fails tomake home cultivation zip ties reasonably available as required by thissection.

4. This section does not apply to seedling plants.

D. Duties of the Agricultural Commissioner. The Agricultural commissionershall make home cultivation zip ties reasonably available throughout the state.

1. Home cultivation zip ties must be sold in a manner that protects theconfidentiality of persons purchasing the zip ties. Measures to protectconfidentiality must include:

a. Purchasers must be allowed to pay for zip ties with cash.

b. Zip ties may be reused within its dates of authorization so longas there is only one zip tie per plant.

c. Purchasers shall show government issued identification for thepurposes of verifying their age and residency within themunicipality providing the zip ties.

d. No personally identifiable information about the purchasers maybe entered into a database or recorded digitally or on paper.

E.Notification of Laws.Each person purchasing a home cultivation zip tie mustbe given written materials that include:

1. A notification that only Maine residents who are 21 years of age orolder may cultivate cannabis.

2. A notification if cannabis cultivation remains illegal under federallaw.


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3. A notification that property owners may forbid cannabis farming andcultivation on their property.

4. A notification that reasonable precautions must be taken to assureminors do not have access to the plants or cannabis products.

5. A notification listing the relevant statute, rules and a web address forcomplete information.

F. Schedule of fees. The fees for home cultivation zip ties are as follows.

1. Each home cultivation zip tie is $35 and may be authorized for one year fromthe date of purchase.

G. Use. A person may consume cannabis in a nonpublic place including a privateresidence.

1. The prohibitions and limitations on smoking tobacco products in specified areasin chapters 262 and 263 apply to cannabis.

2. A person who smokes cannabis in a public place other than as governed bychapters 262 and 263 commits a civil violation for which a fine of $100 may beadjudged.

3. This section shall not be read to shield any adult from federal prosecution.

4. This section shall not be read to allow any adult to possess or consume cannabison federal property.

1-E. Cannabis establishments

1. Cannabis establishments. A cannabis establishment may engage in themanufacture, possession or purchase of cannabis, cannabis products and cannabisaccessories or sell cannabis, cannabis products or cannabis accessories to a consumer asdescribed in this subsection.

A. A retail cannabis store may:

(1) Possess, display or transport cannabis, cannabis products or cannabis

accessories;

(2) Purchase cannabis from a cannabis cultivation facility licensed by the Stateof Maine;

(3) Purchase cannabis or cannabis products from a cannabis productmanufacturing facility; or


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(4) Sell cannabis, cannabis products or cannabis accessories to consumers.

B. A commercial cannabis cultivation facility may:

(1) Cultivate, harvest, process, package, transport, display or possess cannabis;

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

(3) Sell cannabis to another commercial cannabis cultivation facility, acannabis product manufacturing facility or a retail cannabis store; or

(4) Purchase cannabis from another commercial cannabis cultivation facilitylicensed by the State of Maine.

C. A cannabis product manufacturing facility may:

(1) Package, process, transport, manufacture, display or possess cannabis orcannabis products;

(2) Deliver or transfer cannabis or cannabis products to a cannabis testingfacility;

(3) Sell cannabis or cannabis products to a retail cannabis store or a cannabisproduct manufacturing facility;

(4) Purchase cannabis from a commercial cannabis cultivation facility; or

(5) Purchase cannabis or cannabis products from a cannabis productmanufacturing facility.

D. A cannabis testing facility may possess, process, repackage, store, transport,display, transfer or deliver cannabis or cannabis products.

A cannabis establishment may lease or otherwise allow the use of property owned,occupied or controlled by a person, corporation or other entity for any of the activitiesconducted lawfully in accordance with paragraphs A to D.


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2. Construction. This section may not be construed to prevent the impositionof penalties for violating this chapter or state or local rules adopted pursuant to thischapter. This section may not be construed to shield a cannabis establishment fromfederal prosecution.

1-F. Bureau of Alcoholic Beverages, Cannabis and Lottery OperationsThe Bureau of Alcoholic Beverages, Cannabis and Lottery Operations is created

within the Department of Administrative and Financial Services. The bureau shall:

1. General supervision. Enforce the laws and rules relating to themanufacturing, processing, labeling, storing, transporting, testing and selling of cannabisby cannabis establishments and administer those laws relating to licensing and thecollection of taxes;

2. Rules. Establish rules consistent with this chapter for the administration andenforcement of laws regulating and licensing cannabis establishments. Rules adopted

pursuant to this subsection are major substantive rules under Title 5, chapter 375,subchapter 2-A; and

3. Inspections. Hire a minimum of eight liquor and cannabis inspectorsresponsible for:

a. Ongoing education of cannabis establishment and liquor store licensees toensure knowledge of changes to law;

b. Performing regular inspections of cannabis establishments and liquor stores toensure compliance with bookkeeping, point of sale tracking, tax collection,prevention of sales to minors, and marketing restrictions.

4. Licensing. Issue commercial cannabis cultivation facility, cannabis testingfacility, cannabis product manufacturing facility and retail cannabis store licensespursuant to section 2430-K;

6. Restricting Access to Minors.

A. Prevention of Sales to Minors and Intoxicated Persons. TheBureau shall establish rules to prevent the sale of cannabis by licensees to minorsand intoxicated persons, including setting up a requirement to universally verify theage of consumers with a government-issued ID;

B. Advertising.1. Advertising form subject to bureau authorization. No person mayadvertise cannabis or cannabis products within the State, except in theform specifically authorized by the bureau, or as allowed by the US andMaine Constitutions. Radio, television, signs, billboards, newspapers,magazines and periodicals may carry advertising subject to the rules of thebureau.


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2. Bureau may adopt rules governing advertising brand names inlocal option areas. The bureau may adopt rules restricting theadvertising of any type of cannabis by brand names during the periodwhen such sales are prohibited in any municipality that has voted in any

particular local option election against the sale of cannabis.3. Use of picture or representation of State House prohibited. Noperson may use or display a picture or other form of representation ofthe State House for advertising of cannabis or cannabis products.

4. Product Names. The bureau may adopt rules for naming individualstrains of cannabis or cannabis products.

5. Prohibition of Vending Machines.Vending machines, as once used tosell tobacco, are prohibited.

7. Publish laws and rules. Ensure that licensees have access to theprovisions of this chapter and other laws and rules governing cannabis in accordance with

this section;

8. Post laws and rules. Post on the department's publicly accessible websitethis chapter and all rules adopted under this chapter. The bureau shall notify all licenseesof changes in the law and rules via a publicly accessible website posting within 90 daysof adjournment of each session of the Legislature. The bureau shall update the posting onthe department's publicly accessible website to reflect new laws and rules before theeffective date of the laws and rules;

9. Certification. Certify monthly to the Treasurer of State a completestatement of revenues and expenses for licenses issued and for revenues collected by thebureau and submit an annual report that includes a complete statement of the revenues

and expenses for the bureau to the Governor and the Legislature;

10. Revocation and suspension of licenses. Suspend or revoke thelicense of a licensee in accordance with rules adopted by the bureau. A cannabisestablishment whose license is suspended or revoked pursuant to this subsection may:

A. Continue to possess cannabis during the time its license is suspended, but it maynot dispense, transfer or sell cannabis. If the cannabis establishment is a commercialcannabis cultivation facility, it may continue to cultivate cannabis plants during thetime its license is suspended. Cannabis may not be removed from the licensedpremises except as authorized by the bureau and only for the purpose of destruction;

andB. Possess cannabis for up to 14 days after the revocation of its license, duringwhich time the cannabis establishment shall dispose of its inventory of cannabis inaccordance with bureau rules; and


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10. Annual report. Beginning January 15, 2016 and annually thereafter,report to the joint standing committee of the Legislature having jurisdiction over cannabisregulation. The report must include, but is not limited to, all rules adopted by the bureauand statistics regarding the number of cannabis establishment applications received andlicensed, the licensing fees collected within the prior year and any inspections violations.

The report shall also include statistical data regarding Maine youth consumption andperceptions of safety of cannabis, tobacco, alcohol and controlled substances; said datamay be procured from other government sources who already track this. The committeehaving jurisdiction over the bureau may be authorized to develop legislation to addressany issues stemming from the report in the First Regular Session of the 128 th, 129thand130thLegislatures.

1-G. Licensing of cannabis establishments

1. Applications. An applicant for a cannabis establishment license shall file anapplication in the form required by the bureau for the type of cannabis establishmentlicense sought, along with the application fee as set by the Bureau.

An applicant may apply for and be granted more than one type of cannabisestablishment license except that a person licensed as a cannabis testing facility may nothold any other cannabis establishment license. Registered dispensaries and registeredcaregivers shall have the right of first refusal for a cannabis establishment license. Thebureau shall begin accepting and processing applications by August 1, 2016 for registereddispensaries and registered caregivers. The bureau shall begin accepting and processingapplications by February 1, 2017 for all other applicants.

2. Local consultation. Upon receiving an application for a cannabisestablishment, the bureau shall immediately forward a copy of the application and 25

percent of the license application fee to the locality in which the applicant desires tooperate.

3. License issued. The bureau shall issue or renew a license to operate acannabis establishment to an applicant who meets the requirements of the bureau, whichshall include a site inspection, review of financial capacity, review of current consumersatisfaction, and product quality testing, as set forth in rule and in subsection 9 within 90days of the date of receipt of the application unless:

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

B. The bureau is notified by the relevant locality that the applicant is not incompliance with an ordinance, rule or regulation made pursuant to section 2430-Land in effect at the time of application; or

C. The number of cannabis establishments allowed in the locality has been limitedpursuant to section 2430-L or is limited by subsection 5 and the bureau has alreadylicensed the maximum number of cannabis establishments allowed in the locality forthe category of license that is sought.


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4. License Fees.The Bureau will determine the revenue needed to set up the licensingand enforcement operations of the bureau and set the fees in proportion to the categoriesas outlined in subsection 7.

5. Competing applications. The following provisions control the situationwhen more than one application is received by the bureau for establishment of a cannabisestablishment in the same locality.

A. If a greater number of applications are received from qualified applicants tooperate a cannabis establishment in a locality than are allowed under the limitsenacted by the locality pursuant to section 2430-L or pursuant to subsection 5, thebureau shall solicit and consider input from the locality as to the locality's preferenceor preferences for licensure. Within 90 days of the date the first application isreceived, the bureau shall issue the maximum number of applicable licenses for eachtype of cannabis establishment license application received.

B. In any competitive application process to determine which applicants willreceive licenses for any class of cannabis establishment, the bureau shall give firstpreference to an applicant who has at least two years of previous experiencecultivating cannabis in compliance with chapter 558-C and second preference to anapplicant who is licensed to sell liquor.

C. The bureau may not grant a license for a cannabis establishment to a licenseewho has already received a license to operate the same type of cannabisestablishment if doing so would prevent another qualified applicant, who hasapplied, from receiving a license.

6. Limitation on number of retail cannabis stores. Unless the localityhas prohibited retail cannabis stores, and at least one qualifying application is received,the bureau shall license:

A. A minimum of one and a maximum of four (4) retail cannabis stores in a localitywith a population 20,001 and above, commensurate with the number of qualifyingapplications received by the Bureau;

B. A minimum of one and a maximum of two (2) retail cannabis stores in a localitywith a population of at least 5,001 but less than 20,000, commensurate with thenumber of qualifying applications received by the Bureau; and

C. A minimum and maximum of one (1) retail cannabis store in a locality with apopulation of at least 2,000 but less than 5,001, commensurate with the number ofqualifying applications received by the Bureau.

The bureau may license one retail cannabis store in a locality where the population is lessthan 2,000 if the municipality or county commissioners for the locality have notprohibited retail cannabis stores.


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7. Limitation on commercial cannabis cultivation facility size. Theamount of space approved for commercial cannabis production is limited to four hundredthousand square feet, unless the Bureau determines that a greater amount may be neededto ensure an adequate supply to meet demand for various strains of marijuana throughoutthe state. Applicants must designate on their operating plan the size category of the

production premises and the amount of actual square footage in their premises that willbe designated as plant canopy. Applicants who apply for larger cultivation facilities, butare not accepted by the bureau, may be considered for smaller cultivation facilities.

A. Categories.There are three categories as follows:

A. Tier 1 Less than one thousand (1,000) square feet;B. Tier 2 One thousand and one square (1,001) feet and above up to two

thousand five hundred (2,500) square feet; and

C. Tier 3 Three thousand and one (3,001) square feet and above up to seventhousand and five hundred (7,500) square feet; and

D. Tier 4 Seven thousand and one (7,5001) square feet and above up to tenthousand square feet.

B. Number of Licenses Issued.The bureau is authorized to license a minimum of thenumber of the following licenses, and may adjust the allocation if it deems more squarefootage is needed statewide:

A. Tier 1 One-hundred (100); andB.

Tier 2 Sixty (50); and

C. Tier 3 Six (6); andD. Tier 4 Three (3).

C. Reduction of Square Footage.The bureau may reduce a licensee's or applicant'ssquare footage designated to plant canopy for the following reason:

(a) If fifty percent of production space used for plant canopy in the licensee'soperating plan is not met by the end of the first year of operation the board may

reduce the tier of licensure.

8. Reasons for denial. Upon denial of an application, the bureau shall notifythe applicant in writing of the specific reason for its denial.

9. License term. All licenses under this chapter are effective for one year fromthe date of issuance.


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10. Qualifications. This subsection governs the qualifications for licensure asa cannabis establishment.

A.Persons applying for any cannabis establishment license must have lived in theState of Maine for a minimum of two years prior to applying. If a corporation is

applying, all members of the board must comply with this section.B.Corporations applying for any cannabis establishment license must have their

charter issued by the State of Maine.C.A person who has been convicted of a disqualifying drug offense may not be a

licensee. For purposes of this section, "disqualifying drug offense" means aconviction for a violation of a state or federal controlled substance law that is acrime punishable by imprisonment for one year or more. It does not include anoffense for which the sentence, including any term of probation, incarceration orsupervised release, was completed 10 or more years prior to application forlicensure or an offense that consisted of conduct that is permitted under thischapter.

D.A person who has had a license for a cannabis establishment revoked may not bea licensee.

E.If the applicant is a corporation, an applicant may not be issued a license if any ofthe principal officers of the corporation is personally ineligible under paragraphsA or D.

F.The bureau shall inspect all applicants for compliance with this statute prior toissuing a license.

G.First priority shall be given to registered caregivers and registered dispensaries asestablished in the Medical Marijuana Act.

H.The bureau shall accept applications from registered caregivers and registereddispensaries as established in the Medical Marijuana Act three months prior to

the open application date.I. The bureau shall promulgate rules for a streamlined application process for

registered dispensaries and registered caregivers, which shall include an initialsite inspection confirming compliance with this statute.

J.If at least two thirds of the board members of a registered dispensary submit anapplication together, even if under a new corporation, section G and H shall beconsidered applicable. A board member may only qualify once under thissection.

11. General Cannabis Establishment Operations. This subsectiongoverns the operation of a cannabis establishment.

A. A licensed cannabis establishment may not be located within 1,000 feet of theproperty line of a preexisting public or private school. The distance must bemeasured from the main entrance of the cannabis establishment to the main entranceof the school by the ordinary course of travel.

B. A licensee shall implement appropriate security measures, consistent with rulesissued by the bureau, that are designed to prevent:


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(1) Unauthorized entrance into areas containing cannabis;

(2) The theft of cannabis located on the premises or in transit to or from thepremises by the licensee;

(3) Tampering with or adulteration of the cannabis products;

(4) Unauthorized access to cannabis or cannabis accessories; and

(5) Access to cannabis by or sales of cannabis to minors, except that a cannabisestablishment that is also a primary caregiver or a dispensary may continue toserve its qualifying patients as permitted under chapter 558-C.

C. A licensee shall prepare and maintain documents that include procedures for theoversight of all aspects of operations and procedures to ensure accurate recordkeeping.

D. A cannabis establishment shall make available for inspection its license at thepremises to which that license applies. A licensee may not refuse a representative ofthe bureau the right at any time to inspect the entire licensed premises or to audit thebooks and records of the licensee.

E. A retail cannabis store may not sell cannabis to a person under 21 years of age orto a visibly intoxicated person except that a cannabis establishment that is also aprimary caregiver or a dispensary may continue to serve its qualifying patients aspermitted under chapter 558-C.

F. A retail cannabis store may not allow a minor under the age of 21 to enter or

remain on the premises of the retail cannabis store unless the minor is an employeeof the bureau, a law enforcement officer, emergency personnel or a contractorperforming work on the facility that is not directly related to cannabis, such asinstalling or maintaining security devices or performing electrical wiring. Inaddition, a cannabis establishment that is also a primary caregiver or a dispensarymay continue to serve its qualifying patients as permitted under chapter 558-C.

G. Cannabis may be not be sold by a cannabis establishment between the hours of 1a.m. and 6 a.m.

H. A cannabis establishment may not employ as a manager or leave in charge of thelicensed premises any person who, by reason of conviction for a disqualifying drug

offense or because of a revocation of that person's cannabis establishment license, isnot eligible for a cannabis establishment license.

I. A retail cannabis store may not offer any free merchandise, rebate or gift to aconsumer.

J. A retail cannabis store may only sell or furnish cannabis to a consumer from thepremises licensed by the department. A retail cannabis store may not, either directly


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or indirectly, by any agent or employee, travel from locality to locality, or fromplace to place within the same locality, selling, bartering or carrying for sale orexposing for sale cannabis from any vehicle.

K. A retail cannabis store shall verify the age of every consumer purchasing

cannabis products by checking a government authorized photo identification card.

L. A retail cannabis store may also be a licensed liquor store so long as it is in astand-alone space and meets the specified requirements for retail cannabis stores.Liquor licensees who also meet the requirements of a supermarket, conveniencestore or general store may not qualify for a retail cannabis license.

12. Cannabis Cultivation Facility Operations. This subsection governsthe operation of a cannabis establishment. Cannabis cultivation facility licensees shallcomply with the following operational requirements, in addition to those outlined in 2430-K Section 11.

A. Use of Pesticides. The bureau shall promulgate rules regarding the use ofpesticides.

B. Inspections. The bureau shall inspect cannabis cultivation facilities and thecannabis cultivation facilities must be accessible at any time the Bureauwishes to inspect them. The bureau shall develop rules regarding failure toallow inspections up to, and including, forfeiture of the license.

C. Segregated Cultivation.If the licensee also cultivates cannabis in accordancewith the Medical Marijuana Act, there must be a clear segregation of allcultivation, tracking and accounting delineating clear boundaries betweenmedical marijuana and cannabis cultivated according to this statute forpurposes. The Bureau may promulgate rules for outlining best practices andaddressing failure to properly segregate up to, and including revoking alicense.

D. Prohibition on Diversion. The Bureau shall promulgate rules to addressthe scenario of a product from a commercial cannabis cultivation facilityhaving been diverted to states where cannabis remains illegal, with penaltiesup to permanently revoking the commercial cannabis cultivation facility'slicense.

12. Notification of license expiration. The following provisions applywhen a licensee's license expires.

A. A licensee that unintentionally fails to renew a license held by that licensee uponits expiration date and continues to engage in activities allowed by section 2430-I isnot chargeable with illegal sales for a period of 14 days following the expirationdate. A licensee that continues to make sales of cannabis after having been properlynotified of the expired license may be charged with illegally selling cannabis.


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(4) Establish civil penalties for violation of an ordinance, rule or regulationgoverning the time, place and manner that a cannabis establishment mayoperate in that locality.

C. If the bureau has not begun issuing licenses by January 1, 2016, an applicant

may submit an application directly to the locality in which it wants to operate. Alocality that receives an application pursuant to this paragraph shall issue a license toan applicant within 90 days of receipt of the application unless the locality finds, andnotifies the applicant, that the applicant is not in compliance with an ordinance, ruleor regulation made pursuant to section 2430-J or paragraph B in effect at the time ofapplication. The locality shall notify the bureau if the locality issues an annuallicense to the applicant.

D. If the bureau does not issue a license to an applicant within 90 days of receipt ofthe application filed in accordance with section 2430-K and does not notify theapplicant of the specific, permissible reason for the denial, in writing and within 90

days of receipt of the application, the applicant may resubmit its application directlyto the locality and the locality may issue an annual license to the applicant. Alocality issuing a license to an applicant shall do so within 90 days of receipt of theresubmitted application unless the locality finds, and notifies the applicant, that theapplicant is not in compliance with an ordinance, rule or regulation made pursuant tosection 2430-J or paragraph B in effect at the time the application is resubmitted.The locality shall notify the bureau if the locality issues an annual license to theapplicant. If an application is submitted to a locality under this paragraph, the bureaushall forward to the locality the application fee paid by the applicant to the bureauupon request by the locality.

E. A license issued by a locality in accordance with paragraph C or D has the sameforce and effect as a license issued by the bureau in accordance with section 2430-Kand the holder of that license is not subject to regulation or enforcement by thebureau during the term of that license. A subsequent or renewed license may beissued under this paragraph on an annual basis if the bureau has not adopted rulesrequired by section 2430-J at least 90 days prior to the date upon which suchsubsequent or renewed license would be effective, or if the bureau has adopted rulespursuant to 2430-J but has not, at least 90 days after the adoption of those rules,issued any cannabis establishment licenses pursuant to section 2430-K.

2. Local taxes and fees.A local government may impose, levy, and collect a tax up to two percent upon thesale of retail cannabis or retail cannabis products that has been approved by thatlocal government.

1-I. Cannabis Regulation and Licensing Fund established

1. Fund established. The Cannabis Regulation and Licensing Fund, referredto in this section as "the fund," is established as an Other Special Revenue Funds accountin the bureau for the purposes specified in this section.


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

A. All money received as a result of applications and renewal registrations forlicensing under section 2430-K;

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

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

D. Ten percent of the revenue generated by the excise tax imposed by Title 36,section 4922; 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 cannabis establishments. 1-J. Research authorized

Notwithstanding the provisions of this chapter regulating the distribution ofcannabis, a scientific or medical researcher who has previously published peer-reviewedresearch may purchase, possess and securely store cannabis for purposes of conductingresearch. A scientific or medical researcher may administer and distribute cannabis to aparticipant in research who is at least 21 years of age after receiving informed consentfrom that participant.

1-K. Construction

1. Relation to Maine Medical Use of Cannabis Act. This chapter maynot be construed to limit any privileges or rights of a qualifying patient, primarycaregiver or registered dispensary under the Maine Medical Use of Cannabis Act asprovided in chapter 558-C.

2. Employment policies. This chapter may not be construed to require anemployer to permit or accommodate the use, consumption, possession, transfer, display,transportation, sale or growing of cannabis in the workplace.

3. Operating under the influence. This chapter may not be construed toexempt a person from the laws prohibiting operating under the influence of intoxicants

under Title 29-A, section 2401, subsection 13.

4. Transfer to minor. This chapter may not be construed to permit thetransfer of cannabis, with or without remuneration, to a person under 21 years of age or toallow a person under 21 years of age to purchase, possess, use, transport, grow orconsume cannabis.


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5. Federal law. This chapter may not be construed to shield a person from federalprosecution.

1-L. Cannabis Research Fund established

1. Fund established. The Cannabis Research Fund, referred to in this sectionas "the fund," is established in and administered by the Department of Health and HumanServices and is an interest-bearing Other Special Revenue Funds account. Balances in thefund may not lapse and must be carried forward to the next fiscal year.


A. Five percent of the revenue generated by the excise tax imposed by Title 36,section 4922 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.

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

1-M. Low-Income Medical Marijuana Patient Access Program Fund

1. Fund established. The Low-Income Medical Marijuana Patient AccessFund, referred to in this section as "the fund," is established in and administered by theDepartment of Health and Human Services and is an interest-bearing Other SpecialRevenue Funds account. Balances in the fund may not lapse and must be carried forwardto the next fiscal year.


A. Five percent of the revenue generated by the excise tax imposed by Title 36,section 4922;

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

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

3. Uses of the fund. All money deposited in the fund and the earnings on thatmoney remain in the fund to be used to provide grants for the purpose of providingmedical marijuana to low-income patients. Money in the fund may also be used for thenecessary administrative and personnel costs associated with the management of the fundbut may not be deposited in the General Fund or any other fund except as specificallyprovided by law.


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Sec. C-2. Rulemaking. By June 1, 2015, the Department of Administrative andFinancial Services, Bureau of Alcoholic Beverages, Cannabis and Lottery Operationsshall adopt emergency 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 cannabis establishments pursuant to Title 22, chapter 558-D.These rules must be developed by the bureau and may not be contracted out to an entityoutside the bureau. These rules may not prohibit the operation of cannabisestablishments, either expressly or through restrictions that make the operation ofcannabis establishments unreasonably impracticable. As used in this section,"unreasonably impracticable" means that the measures necessary to comply with the rulesrequire such a high investment of risk, money, time or other resource or asset that theoperation of a cannabis establishment is not worthy of being carried out in practice by areasonably prudent businessperson.Rules adopted pursuant to this section must include:1. Provisions for administering and enforcing Title 22, chapter 558-D, including

oversight requirements and civil penalties for violations;2. The form and content of applications for each type of cannabis establishment license,renewal registration forms and associated licensing and renewal fee schedules;3. In making a determination between competing applicants for the same type of cannabisestablishment license, if there are more applicants than licenses available, that preferencemust be given to a member or officer of a board of a corporation operating a registereddispensary under Title 22, chapter 558-C or a senior manager of registered dispensaryunder Title 22, chapter 558-C;

4. Procedures allowing an applicant who has been denied a license due to failure to meetthe requirements for licensing to correct the reason for failure;5. Procedures and timelines for background checks and appeals;

6. Rules governing the transfer of a license, which must be substantially the same as rulesgoverning the transfer of a license for the sale of liquor under Title 28-A, section 605;7. Minimum standards for employment, including requirements for background checks,restrictions against hiring persons under 21 years of age and safeguards to protect againstunauthorized employee access to cannabis;8. Minimum record-keeping requirements, including the following:

A. The recording of the disposal of cannabis that is not sold; andB. For a cannabis establishment that is also a nonprofit dispensary or a primarycaregiver, a requirement to segregate all funds received from the sale of medicalcannabis pursuant to Title 22, chapter 558-C from all funds received from the sale ofcommercial cannabis pursuant to Title 22, chapter 558--D.

Rules developed pursuant to this subsection may not require a consumer to provide aretail cannabis store with personal information other than government-issuedidentification to determine the consumer's age or require the retail cannabis store toacquire and record personal information about its consumers;

9. Health and safety rules and standards for the manufacture of cannabis productsand the cultivation of cannabis;


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10. Labeling requirements for cannabis and cannabis products sold or distributed by acannabis establishment;

11. Restrictions on the advertising, signs and display of cannabis and cannabis products,including a prohibition on advertising reasonably considered aimed at minors;

12. Minimum security requirements, including standards to reasonably protect against

unauthorized access to cannabis at all stages of the licensee's possession, transportation,storage and cultivation of cannabis; these security requirements may not prohibit outdoorcultivation in an enclosed, secured space;

13. Procedures for enforcing Title 22, section 2430-K, subsections 9 and 10, includingcivil penalties for violations, procedures for suspending or terminating the license of alicensee that violates licensing provisions or the rules adopted pursuant to this section andprocedures for appeals of penalties or licensing actions;14. Any other oversight requirements that the bureau determines are necessary toadminister the laws relating to licensing cannabis establishments.Notwithstanding the limits on retail cannabis stores specified in Title 22, section 2430-Kor imposed pursuant to Title 22, section 2430-L, until the initial rules of the bureau have

been reviewed by the Legislature, the bureau may issue only 25 percent of the number oflicenses allowed per municipality, but must issue at least one if a qualified application isreceived.

Rules adopted pursuant to this section may not prohibit a locality, as defined in Title 22,section 2430-F, from limiting the number of each type of licensee that may operate in thelocality or from enacting reasonable regulations applicable to licensees.

Sec. C-3. Cannabis Research Fund rulemaking. By July 1, 2014, theDepartment of Health and Human Services shall adopt emergency major substantiverules, as defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A, toimplement the provisions of Title 22, section 2430-Q regarding administration and uses

of the Cannabis 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 includeresearchers with expertise in medical or scientific research;3. Criteria for awarding grants, dates for decisions of grant awards and methods fordisbursement of funds;4. Minimum record-keeping, reporting and publication requirements for persons awardedgrants; and5. Any other oversight requirements that the department determines necessary toadminister the grants.


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PART E

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

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

Property is not subject to forfeiture under this chapter if the activity that subjects theperson's property to forfeiture is related to cannabis use and the person meets therequirements for medical use of cannabis under Title 22, chapter 558-C or personal orcommercial cannabis activities under Title 22, chapter 558-D.

Sec. E-2. 17-A MRSA 1111-A, sub-1, as amended by IB 2009, c. 1, 2, isfurther 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 thehuman body a scheduled drug in violation of this chapter or Title 22, section 2383, exceptthat this section does not apply to a person who is authorized to possess cannabis formedical use pursuant to Title 22, chapter 558-C or personal or commercial cannabisactivities pursuant to Title 22, chapter 558-D, to the extent the drug paraphernalia is usedfor that person's medical use of cannabis or personal or commercial activities as allowedunder Title 22, chapter 558-D. It includes, but is not limited to:

A. Kits used or intended for use in planting, propagating, cultivating, growing orharvesting of any species of plant which is a scheduled drug or from which ascheduled 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 anyspecies of plant that is a scheduled drug;

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

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

F. Separation gins and sifters, used or intended for use in removing twigs and seedsfrom, or in otherwise cleaning or refining, cannabis;

G. Blenders, bowls, containers, spoons and mixing devices used or intended for usein compounding scheduled drugs;


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H. Capsules, balloons, envelopes and other containers used or intended for use inpackaging small quantities of scheduled drugs;

I. Containers and other objects used or intended for use in storing or concealingscheduled drugs; and

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

(1) Metal, wooden, acrylic, glass, stone, plastic or ceramic pipes with orwithout 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 acannabis cigarette that has become too small or too short to be held in the hand;

(6) Chamber pipes;

(7) Carburetor pipes;

(8) Electric pipes;

(9) Air-driven pipes;

(10) Chillums;

(11) Bongs; or

(12) Ice pipes or chillers.

Sec. E-3. 17-A MRSA 1111-A, sub-4-A and 4-B, as enacted by PL2011, c. 464, 20, are amended to read:

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

A. The person trafficks in or furnishes drug paraphernalia knowing, or undercircumstances when that person reasonably should know, that it will be used toplant, 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


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following establishments are not considered food establishments required to be licensedunder 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 freshproduce 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 avacuum packaging process or a modified atmosphere packaging process;

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

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

Sec. F-7. 22 MRSA 2158, as amended by PL 2011, c. 407, Pt. A, 3 andamended by 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 suchsubstance is required in the production thereof or cannot be avoided by goodmanufacturing practice, must be deemed to be unsafe for purposes of the application ofsection 2156, subsection 1, paragraph B; but when such substance is so required orcannot be avoided, the Commissioner of Agriculture, Conservation and Forestry shalladopt rules limiting the quantity therein or thereon to such extent as the commissionerfinds necessary for the protection of public health, and any quantity exceeding the limitsso 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 containingany added amount of such substance, be considered to be adulterated within the meaningof section 2156, subsection 1, paragraph A. In determining the quantity of such addedsubstance to be tolerated in or on different articles of food, the commissioner shall takeinto account the extent to which the use of such substance is required or cannot beavoided in the production of each such article and the other ways in which the consumermay be affected by the same or other poisonous or deleterious substances. Goods that areprepared by a primary caregiver under section 2152, subsection 4-A, paragraph G or in a


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food establishment that is a licensed facility under section 2167 and that contain cannabisfor medical use by a qualifying patient, pursuant to chapter 558-C, or that containcannabis and are prepared for sale in a retail cannabis store pursuant to chapter 558-D arenot considered to be adulterated under this subchapter.

Sec. F-8. 26 MRSA 772, sub-2, as amended by PL 2009, c. 631, 47 andaffected by 51, is further amended to read:

2. Rules; list of occupations. The director shall adopt rules to develop andmaintain 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 thefederal Fair Labor Standards Act of 1938, 29 United States Code, Section 212 and anyassociated regulations. The rules must also contain provisions prohibiting theemployment of minors in places having nude entertainment and, in registereddispensaries of cannabis for medical use authorized under Title 22, chapter 558-C and inestablishments licensed for commercial cannabis-related activities under Title 22, chapter558-D.

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 moralcharacter shall make its determination in writing based solely upon information recordedby governmental entities within 5 years of receipt of the application, including, but notlimited to, the following matters:

A. Information of record relative to incidents of abuse by the applicant of family orhousehold 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 crimespunishable by less than one year imprisonment or one or more adjudications of theapplicant for juvenile offenses involving conduct that, if committed by an adult, ispunishable by less than one year imprisonment;

C. Information of record indicating that the applicant has engaged in reckless ornegligent 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 violationof Title 22, section 2383 or a juvenile crime that would be defined as a criminalviolation 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 findingof a lack of good moral character.


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PART H

Sec. 2-1. 22 Chapter 108, MRSA 1

Definitions


1.Bureau. "Bureau" means the Bureau of Health.2.Advisory council. "Advisory council" means the Marijuana Youth Prevention

and Control Advisory Council.3.Program. "Program" means the Marijuana Youth Prevention and Control

Program.4.Marijuana products. "Marijuana products" means any form of cannabis and any

material or device used in the smoking, chewing, eating, vaporizing or other form ofcannabis consumption, including cigarette papers and pipes.

1. Marijuana Youth Prevention and Control Program.

1.Program established. The Marijuana Youth Prevention and Control Program isestablished in the bureau. The purposes of the program are to prevent the State's youthsfrom ever using marijuana products, aside from when a medical provider hasrecommended it for the treatment of an ailment. The program includes the followingcomponents:

A. An ongoing, major media campaign to:(1) Encourage young people not to begin using marijuana products;(2) Encourage public acceptance of smoke-free environments;(3) Reduce youth consumption of marijuana products;

B. Grants for funding community-based programs aimed at youth marijuanaprevention and control, including funding of marijuana prevention and controleducation for those school administrative units that choose to offer such programsto primary, middle and high school students; for community-based enforcementof state cannabis control laws, including sales to minors and for cessationservices;


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DRAFT Cannabis Regulation Bill

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