SB 231 — Relating generally to medical cannabis

clarifying that only those public officials directly involved in the administrations of the medical cannabis program are prohibited from having a monetary interest in a medical cannabis organization;

and adding accredited educational institutions engaged in research to the list of persons, entities, and organizations exempt from licensure, discipline for lawful use, possession, or manufacture of medical cannabis.

Be it enacted by the Legislature of West Virginia:

Article 2.  definitions.

§16A-2-1.

Definitions.

(a) The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

(1) “Act” means the West Virginia Medical Cannabis Act and the provisions contained in this chapter.

(2) “Advisory board” means the advisory board established under §16A-11-1 et seq.

of this code.

(3) “Bureau” means the Bureau for Public Health within the West Virginia Department of Health and Human Resources.

(4) “Caregiver” means the individual designated by a patient or, if the patient is under 18 years of age, an individual authorized under §16A-5-1 et seq.

of this code, to deliver medical cannabis.

(5) “Certified medical use” means the acquisition, possession, use, or transportation of medical cannabis by a patient, or the acquisition, possession, delivery, transportation, or administration of medical cannabis by a caregiver, for use as part of the treatment of the patient’s serious medical condition, as authorized in a certification under this act, including enabling the patient to tolerate treatment for the serious medical condition.

(6) “Change in control” means the acquisition by a person or group of persons acting in concert of a controlling interest in an applicant or permittee either all at one time or over the span of a 12-consecutive-month period.

(7) “Commissioner” means the Commissioner of the Bureau for Public Health.

(8) “Continuing care” means treating a patient, in the course of which the practitioner has completed a full assessment of the patient’s medical history and current medical condition, including an in-person consultation with the patient, and is able to document and make a medical diagnosis based upon the substantive treatment of the patient.

(9) “Compassion certificate” means a temporary certification issued by a practitioner for patients and caregivers to grow, possess, use, or give away cannabis without remuneration for the purpose of obtaining access to medical cannabis as authorized under this article.

(9) (10) “Controlling interest” means:

(A) For a publicly traded entity, voting rights that entitle a person to elect or appoint one or more of the members of the board of directors or other governing board or the ownership or beneficial holding of five percent or more of the securities of the publicly traded entity.

(B) For a privately held entity, the ownership of any security in the entity.

(10) (11) “Dispensary” means a person, including a natural person, corporation, partnership, association, trust, or other entity, or any combination thereof, which holds a permit issued by the bureau to dispense medical cannabis.

The term does not include a health care medical cannabis organization as defined in §16A-13-1 et seq.

of this code.

(11) (12) “Family or household member” means the same as defined in §48-27-204 of this code.

(12) (13) “Financial backer” means an investor, mortgagee, bondholder, note holder, or other source of equity, capital, or other assets, other than a financial institution.

(13) (14) “Financial institution” means a bank, a national banking association, a bank and trust company, a trust company, a savings and loan association, a building and loan association, a mutual savings bank, a credit union, or a savings bank.

(14) (15) “Form of medical cannabis” means the characteristics of the medical cannabis recommended or limited for a particular patient, including the method of consumption and any particular dosage, strain, variety and quantity, or percentage of medical cannabis or particular active ingredient.

(15) (16) “Fund” means the Medical Cannabis Program Fund established in §16A-9-2 of this code.

(16) (17) “Grower” means a person, including a natural person, corporation, partnership, association, trust, or other entity, or any combination thereof, which holds a permit from the bureau under this act to grow medical cannabis.

The term does not include a health care medical cannabis organization as defined in §16-13-1 et seq.

of this code.

(17) (18) “Grower/processor” means either a grower or a processor.

(18) (19) “Identification card” means a document issued under §16A-5-1 et seq.

of this code that authorizes access to medical cannabis under this act.

(19) (20) “Individual dose” means a single measure of medical cannabis.

(20) (21) “Medical cannabis” means cannabis for certified medical use as set forth in this act.

(21) (22) “Medical cannabis organization” means a dispensary, grower, or processor.

The term does not include a health care medical cannabis organization as defined in §16A-13-1 et seq.

of this code.

(22) (23) “Patient” means an individual who:

(A) Has a serious medical condition;

(B) Has met the requirements for certification under this act;

and (C) Is a resident of this state.

(23) (24) “Permit” means an authorization issued by the bureau to a medical cannabis organization to conduct activities under this act.

(24) (25) “Physician” or “practitioner” means a doctor of allopathic or osteopathic medicine who is fully licensed pursuant to the provisions of either §30-3-1 et seq.

or §30-14-1 et seq.

of this code to practice medicine and surgery in this state.

(25) (26) “Post-traumatic stress disorder” means a diagnosis made as part of continuing care of a patient by a medical doctor, licensed counselor, or psychologist.

(26) (27) “Prescription drug monitoring program” means the West Virginia Controlled Substances Monitoring Program under §60A-9-101 et seq.

of this code.

(27) (28) “Principal” means an officer, director, or person who directly owns a beneficial interest in or ownership of the securities of an applicant or permittee, a person who has a controlling interest in an applicant or permittee, or who has the ability to elect the majority of the board of directors of an applicant or permittee, or otherwise control an applicant or permittee, other than a financial institution.

(28) (29) “Processor” means a person, including a natural person, corporation, partnership, association, trust, or other entity, or any combination thereof, which holds a permit from the bureau under this act to process medical cannabis.

The term does not include a health care medical cannabis organization as defined in §16A-13-1 et seq.

of this code.

(29) (30) “Registry” means the registry established by the bureau for practitioners.

(30) (31) “Serious medical condition” means any of the following, as has been diagnosed as part of a patient’s continuing care:

(A) Cancer;

(B) Positive status for human immunodeficiency virus or acquired immune deficiency syndrome;

(C) Amyotrophic lateral sclerosis;

(D) Parkinson’s disease;

(E) Multiple sclerosis;

(F) Damage to the nervous tissue of the spinal cord with objective neurological indication of intractable spasticity;

(G) Epilepsy;

(H) Neuropathies;

(I) Huntington’s disease;

(J) Crohn’s disease;

(K) Post-traumatic stress disorder;

(L) Intractable seizures;

(M) Sickle cell anemia;

(N) Severe chronic or intractable pain of neuropathic origin or severe chronic or intractable pain;

(A) Autism;

(B) Agitation of Alzheimer’s disease;

(C) Amyotrophic lateral sclerosis (ALS);

(D) Anorexia nervosa;

(E) Arnold-Chiari malformation;

(F) Cancer;

(G) Cachexia/wasting syndrome;

(H) Causalgia;

(I) Chronic inflammatory demyelinating polyneuropathy;

(J) Chronic pain;

(K) Connective tissue disease;

(L) Crohn’s disease;

(M) CRPS (complex regional pain syndrome Type II);

(N) Dystonia;

(O) Ehlers-Danlos syndrome;

(P) Fibrous Dysplasia;

(Q) Glaucoma;

(R) Hepatitis C;

(S) HIV/AIDS;

(T) Huntington’s Disease;

(U) Hydrocephalus;

(V) Hydromyelia;

(W) Interstitial cystitis;

(X) Irritable bowel syndrome;

(Y) Lupus;

(Z) Migraines;

(AA) Multiple Sclerosis;

(BB) Muscular Dystrophy;

(CC) Myasthenia Gravis;

(DD) Myoclonus;

(EE) Nail-patella syndrome;

(FF) Neuro-Bechet’s autoimmune disease;

(GG) Neurofibromatosis;

(HH) Neuropathy;

(II) Osteoarthritis;

(JJ) Parkinson’s disease;

(KK) Polycystic kidney disease (PKD);

(LL) Post-Concussion Syndrome;

(MM) Post-Traumatic Stress Disorder (PTSD);

(NN) Reflex sympathetic dystrophy;

(OO) Residual limb pain;

(PP) Rheumatoid arthritis;

(QQ) Seizures (including those characteristic of Epilepsy);

(RR) Severe fibromyalgia;

(SS) Sickle Cell Anemia;

(TT) Sjogren’s syndrome;

(UU) Spinal cord disease (including but not limited to arachnoiditis);

(VV) Spinal cord injury is damage to the nervous tissue of the spinal cord with objective neurological indication of intractable spasticity;

(WW) Spinocerebellar ataxia;

(XX) Superior canal dehiscence syndrome;

(YY) Syringomyelia;

(ZZ) Tarlov cysts;

(AAA) Tourette syndrome;

(BBB) Traumatic brain injury;

(CCC) Ulcerative colitis;

(O) (DDD) Terminally ill A terminal illness;

or (EEE) Any medical condition for which the commissioner approves the use of medical cannabis pursuant to a recommendation to do so by the advisory board.

(31) (32) “Terminally ill “Terminal illness” means a medical prognosis of life expectancy of approximately one year or less if the illness runs its normal course.

article 3.  medical cannabis program.

§16A-3-1.

Establishment of program.

(a) A medical cannabis program for patients suffering from serious medical conditions is established.

The program shall be implemented and administered by the bureau.

The bureau shall:

(1) Issue permits to medical cannabis organizations to authorize them to grow, process, or dispense medical cannabis and ensure their compliance with this act;

(2) Register practitioners and ensure their compliance with this act;

(3) Have regulatory and enforcement authority over the growing, processing, sale, and use of medical cannabis in this state;

(4) Establish and maintain an electronic database to include activities and information relating to medical cannabis organizations, certifications, and identification cards issued, practitioner registration and electronic tracking of all medical cannabis as required under this act to include:

(A) Ensurance Assurance that medical cannabis is not diverted or otherwise used for unlawful purposes by a practitioner or medical cannabis organization;

(B) Ability to establish the authenticity of identification cards;

(C) Recording recommended forms of medical cannabis, if any, provided in a certification filed by the practitioner;

(D) Monitoring all growth, transfer, possession, processing, testing, and dispensing of medical cannabis in this state;

and (E) The tracking system under §16A-7-1 et seq.

of this code must shall include information under §16A-8-1 of this code and any other information required by the bureau to be used by the bureau and dispensaries to enable a dispensary to lawfully provide medical cannabis.

The tracking system and database shall be capable of providing information in real time.

The database shall be capable of receiving information from a dispensary regarding the disbursement of medical cannabis to patients and caregivers.

This information shall be immediately accessible to the bureau and other dispensaries to inhibit diversion and ensure compliance with this act.

(5) Maintain a directory of patients and caregivers approved to use or assist in the administration of medical cannabis within the bureau’s database;

(6) Develop a four one-hour training course for physicians practitioners regarding the latest scientific research on medical cannabis, including the risks and benefits of medical cannabis and other information deemed determined necessary by the bureau;

Successful completion of the course shall be approved as continuing education credits as determined by:

(A) The State Board of Medicine.

(B) The State Board of Osteopathic Medicine (7) Develop a two-hour an eight-hour course for the principals and employees of a medical cannabis organization who either have direct contact with patients or caregivers or who physically handle medical cannabis.

Employees must  shall successfully complete the course no later than 90 days after commencing employment.

Principals must shall successfully complete the course prior to commencing initial operation of the medical cannabis organization.

The subject matter of the course shall include the following:

(A) Methods to recognize and report unauthorized activity, including diversion of medical cannabis for unlawful purposes and falsification of identification cards;

(B) Proper handling of medical cannabis and recordkeeping;

(C) The latest scientific research on medical cannabis, including the risk and benefits of medical cannabis;

and (C) (D) Any other subject required by the bureau;

(8)  Develop enforcement procedures, including announced and unannounced inspections of facilities of the grower/processors and dispensaries and all records of the medical cannabis organizations;

(9) Establish a program to authorize the use of medical cannabis to conduct medical research relating to the use of medical cannabis to treat serious medical conditions, including the collection of data and the provision of research grants;

(10) Establish and maintain public outreach programs about the medical cannabis program, including:

(A) A dedicated telephone number for patients, caregivers, and members of the public to obtain basic information about the dispensing of medical cannabis under this act;

and (B) A publicly accessible Internet website with similar information;

(11) Collaborate as necessary with other state agencies or contract with third parties as necessary to carry out the provisions of this act;

(12) Determine the number and type of medical cannabis products to be produced by a grower/processor and dispensed by a dispensary;

(13) Develop recordkeeping requirements for all books, papers, any electronic database or tracking system data, and other information of a medical cannabis organization.

Information shall be retained for a minimum period of four years unless otherwise provided by the bureau;

and (14) Restrict the advertising and marketing of medical cannabis, which shall be consistent with the federal rules and regulations governing prescription drug advertising and marketing.

(b) The bureau shall propose rules for legislative promulgation pursuant to the provisions of §29A-3-1 et seq.

of this code as may be that are necessary to carry out and implement the provisions of this act.

The bureau shall also have the power to propose and promulgate emergency rules as may be necessary to carry out and implement the provisions of this act.

§16A-3-2.

Lawful use of medical cannabis.

(a) Notwithstanding any provision of law to the contrary, the use or possession of medical cannabis as set forth in this act is lawful within this state, subject to the following conditions:

(1) Medical cannabis may only be dispensed to:

(A) a patient who receives a certification from a practitioner and is in possession of a valid identification card issued by the bureau;

and (B) a caregiver who is in possession of a valid identification card issued by the bureau.

(2) Subject to rules promulgated under this act, medical cannabis may only be dispensed to a patient or caregiver in the following forms:

(A) Pill;

(B) Oil;

(C) Topical forms, including gels, creams, or ointments;

(D) A form medically appropriate for administration by vaporization or nebulization, excluding dry leaf or plant form until dry leaf or plant forms become acceptable under rules adopted by the bureau;

(E)  Tincture;

(F) Liquid;

or (G) Dermal patch;

(H) Dry leaf or plant form;

(I) Edible food and beverage:

Provided, That no edible cannabis product produced or sold in this state may be shaped or designed to entice children to consume it, including, but not limited to, the shape of people, animals, or fruits;

or (3)  Unless otherwise provided in rules adopted by the bureau under section two, article eleven of this chapter, medical cannabis may not be dispensed to a patient or a caregiver in dry leaf or plant form (J) A form approved by the commissioner upon a recommendation of the advisory board;

(4) (3) An individual may not act as a caregiver for more than five patients;

(5) (4) A patient may designate up to two caregivers at any one time;

(6) (5) Medical cannabis that has not been used by the patient shall be kept in the original package in which it was dispensed;

(7) (6) A patient or caregiver shall possess an identification card whenever the patient or caregiver is in possession of medical cannabis;

and (8) (7)  Products packaged by a grower/processor or sold by a dispensary shall may only be identified by the name of the grower/processor, the name of the dispensary, the form and species of medical cannabis, and the percentage of tetrahydrocannabinol and cannabinol contained in the product.

§16A-3-3.  Unlawful use of medical cannabis.

(a)  Except as provided in section two of this article, section four of article seven, article thirteen or article fourteen of this chapter, the use of medical cannabis is unlawful and shall, in addition to any other penalty provided by law, be deemed a violation of the Uniform Controlled Substances Act under chapter sixty-a of this code  (b)  It shall be unlawful to:

(1)  Smoke medical cannabis.

(2)  Except as provided under subsection (c), incorporate medical cannabis into edible form or sell in edible form.

(3)  Grow medical cannabis unless the grower/processor has received a permit from the bureau under this act.

(4)  Grow or dispense medical cannabis unless authorized as a health care medical cannabis organization under article thirteen of this chapter.

(5)  Dispense medical cannabis unless the dispensary has received a permit from the bureau under this act.

(c)  Edible medical cannabis.

— Nothing in this act shall be construed to preclude the incorporation of medical cannabis into edible form by a patient or a caregiver in order to aid ingestion of the medical cannabis by the patient Except as provided in this chapter, the provisions of chapter 60A of this code, relating to cannabis remain in full force and effect.

§16A-3-5.

Reciprocity for terminally ill cancer patients.

(a) The bureau commissioner may enter into reciprocity agreements with any states that have state that has comparable requirements for the use and lawful purchase of medical cannabis in a manner consistent with the provisions of this article to allow terminally ill cancer medical cannabis patients to purchase medical cannabis in another state.

(b) The commissioner may enter into reciprocity agreements with any state that has comparable requirements for medical cannabis patients and caregivers to possess, transport, use, and transfer without renumeration, medical cannabis in this and any other such approved state.

(c) Nothing in this chapter authorizes patients or caregivers to sell cannabis in any form.

article 4.  Practitioners.

§16A-4-2.

Practitioner restrictions.

[Repealed.] §16A-4-3.

Issuance of certification.

(a) Conditions for issuance.

— A certification to use medical cannabis may be issued by a practitioner to a patient if all of the following requirements are met:

(1) The practitioner has been approved by the bureau for inclusion in the registry and has a valid, unexpired, unrevoked, unsuspended license to practice medicine in this state at the time of the issuance of the certification;

(2) The practitioner has determined that the patient has a serious medical condition and has included the condition in the patient’s health care record;

(3) The patient is under the practitioner’s continuing care for the serious medical condition;

(4) In the practitioner’s professional opinion and review of past treatments, the practitioner determines the patient is likely to receive therapeutic or palliative benefit from the use of medical cannabis;

(5) The practitioner has determined that the patient has no past or current medical condition(s) or medication use that would constitute a contraindication for the use of cannabis;

(6) The practitioner has determined that the patient is experiencing serious pathophysiological discomfort, disability, or dysfunction that may be attributable to a serious medical condition and may possibly benefit from cannabis treatment when current medical research exhibits a moderate or higher probability of efficacy;

and (7) The practitioner has educated the patient about cannabis and its safe use.

(b) Compassion certificate.

— The bureau shall create a registry of all applicable patients and caregivers granted a compassion certificate by a practitioner pursuant to the provisions of this section.

A compassion certificate authorizes a patient or caregiver to lawfully grow no more than 12 mature flowering cannabis plants and up to 12 cannabis seedlings at any one time:

Provided, That a caregiver is authorized 12 mature and 12 seedlings per patient.

A compassion certificate authorizes each patient to possess no more than four ounces of dry flower or leaf medical cannabis per patient:

Provided, however, That  compassion certificates and the authority authorized thereby become void upon the bureau declaring that there is sufficient medical cannabis to meet demand through the other means authorized by this article.

(b) (c) Contents.

— The certification shall include:

(1) The patient’s name, date of birth, and address;

(2) The specific serious medical condition of the patient;

(3) A statement by the practitioner that the patient has a serious medical condition and the patient is under the practitioner’s continuing care for the serious medical condition;

(4) The date of issuance;

(5) The name, address, telephone number, and signature of the practitioner;

(6) Any requirement or limitation concerning the appropriate form of medical cannabis and limitation on the duration of use, if applicable, including whether the patient is terminally ill;

and (7) A statement by the practitioner attesting that he or she has performed the requirements contained in subsection (a) of this section on a form to be issued by the West Virginia Department of Health and Human Resources, B bureau for Public Health.

(c) (d) Consultation.

— (1) A practitioner shall review the prescription drug monitoring program prior to:

(A) Issuing a certification to determine the controlled substance history of a patient;

or (B) Recommending a change of amount or form of medical cannabis.

(2) The practitioner shall consider and give due consideration to other controlled substances the patient may be taking prior to certifying medical cannabis.

(d) (e) Other access by practitioner.

— A practitioner may access the prescription drug monitoring program to do any of the following:

(1) Determine whether a patient may be under treatment with a controlled substance by another physician or other person;

(2) Allow the practitioner to review the patient’s controlled substance history as deemed determined necessary by the practitioner;

(3) Provide to the patient, or caregiver, on behalf of the patient if authorized by the patient, a copy of the patient’s controlled substance history.

(e) (f) Duties of practitioner.

— The practitioner shall:

(1) Provide the certification to the patient;

(2) Provide a copy of the certification to the bureau, which shall place the information in the patient directory within the bureau’s electronic database.

The bureau shall permit electronic submission of the certification;

and (3) File a copy of the certification in the patient’s health care record.

(f) (g) Prohibition.

— A practitioner may not issue a certification for the practitioner’s own use or for the use of a family or household member.

§16A-4-5.

Duration.

Receipt and possession of medical cannabis by a patient or caregiver from a dispensary may not exceed a 30-day supply of individual doses an amount  determined by the commissioner to be appropriate for a 30-day period, by the appropriate measure of volume, weight or concentration level.

During the last seven days of any 30-day period during the term of the identification card, a patient may obtain and possess a 30-day supply for the subsequent 30-day period.

Additional 30-day supplies may be provided in accordance with this section for the duration of the authorized period of the identification card unless a shorter period is indicated on the certification.

§16A-4-6 Immunity for practitioners acting in conformity with chapter.

Notwithstanding any provision of law to the contrary, a practitioner acting in conformity with the provisions of this chapter is immune from civil and criminal liability for issuing or declining to issue certifications.

article 5.

patients.

§16A-5-1.

Identification cards.

(a) Issuance.

— The bureau may issue an identification card to a patient who has a certification approved by the bureau and to a caregiver designated by the patient.

An identification card issued to a patient shall authorize authorizes the patient to obtain and use medical cannabis as authorized by this act.

An identification card issued to a caregiver shall authorize authorizes the caregiver to obtain medical cannabis on behalf of the patient.

(b) Procedure for issuance.

— The bureau shall develop and implement procedures for:

(1) Review and approval of applications for identification cards;

(2) Issuance of identification cards to patients and caregivers;

and (3) Review of the certification submitted by the practitioner and the patient.

(c) Application.

— A patient or a caregiver may apply, in a form and manner prescribed by the bureau, for issuance or renewal of an identification card.

A caregiver must shall submit a separate application for issuance or renewal.

Each application must shall include:

(1) The name, address, and date of birth of the patient;

(2) The name, address, and date of birth of a caregiver;

(3) The certification issued by the practitioner;

(4) The name, address, and telephone number of the practitioner and documentation from the practitioner that all of the requirements of §16A-4-3 (a) of this code have been met;

(5) A $50 processing fee.

The bureau may waive or reduce the fee if the applicant demonstrates financial hardship;

(6) The signature of the applicant and date signed;

and (7) Other information required by the bureau.

(d) Forms.

— Application and renewal forms shall be available on the bureau’s publicly accessible Internet website.

(e) Expiration.

— An The identification card of a patient or caregiver shall expire expires within one year from the date of issuance, upon the death of the patient, or as otherwise provided in this section.

(f) Separate cards to be issued.

— The bureau shall issue separate identification cards for eligible patients and caregivers as soon as reasonably practicable after receiving completed applications, unless it determines that an application is incomplete or factually inaccurate, in which case it shall promptly notify the applicant.

 (g) Change in name or address.

— A patient or caregiver who has been issued an identification card shall notify the bureau within 10 days of any change of name or address.

In addition, the patient shall notify the bureau within 10 days if the patient no longer has the serious medical condition noted on the certification.

(h) Lost or defaced card.

— In the event of a lost, stolen, destroyed, or illegible identification card, the patient or caregiver shall apply to the bureau within 10 business days of discovery of the loss or defacement of the card for a replacement card.

The application for a first replacement card shall be on a form furnished by the bureau and accompanied by a $25 $10 fee.

The bureau may establish higher fees for issuance of second and subsequent replacement identification cards.

The bureau may waive or reduce the fee in cases of demonstrated financial hardship.

The bureau shall issue a replacement identification card as soon as practicable.

A patient or caregiver may not obtain medical cannabis until the bureau issues the replacement card.

article 6.

medical cannabis organizations.

§16A-6-2.

Permits.

(a) Application.

— An application for a grower, processor, or dispensary permit to grow, process, or dispense medical cannabis shall be in a form and manner prescribed by the bureau and shall include:

(1) Verification of all principals, operators, financial backers, or employees of a medical cannabis grower/processor or dispensary;

(2) A description of responsibilities as a principal, operator, financial backer, or employee;

(3) Any release necessary to obtain information from governmental agencies, employers, and other organizations;

(4) A criminal history record check.

Medical cannabis organizations applying for a permit shall submit fingerprints of principals, financial backers, operators, and employees to the West Virginia State Police for the purpose of obtaining criminal history record checks and the West Virginia State Police or its authorized agent shall submit the fingerprints to the Federal Bureau of Investigation for the purpose of verifying the identity of the principals, financial backers, operators, and employees and obtaining a current record of any criminal arrests and convictions.

Any criminal history record information relating to principals, financial backers, operators, and employees obtained under this section by the bureau may be interpreted and used by the bureau only to determine the principal’s, financial backer’s, operator’s, and employee’s character, fitness, and suitability to serve as a principal, financial backer, operator, and employee under this act.

This subdivision shall does not apply to an owner of securities in a publicly traded corporation or an owner of five percent or less in a privately held business entity if the bureau determines that the owner of the securities is not substantially involved in the activities of the medical cannabis organization;

(5) Details relating to a similar license, permit, or other authorization obtained in another jurisdiction, including any suspensions, revocations, or discipline in that jurisdiction;

(6) A description of the business activities in which it intends to engage as a medical cannabis organization;

(7) A statement that the applicant:

(A) Is of good moral character.

For purposes of this subparagraph, an applicant shall include each financial backer, operator, employee, and principal of the medical cannabis organization;

(B) Possesses the ability to obtain in an expeditious manner the right to use sufficient land, buildings, and other premises and equipment to properly carry on the activity described in the application and any proposed location for a facility;

(C) Is able to maintain effective security and control to prevent diversion, abuse, and other illegal conduct relating to medical cannabis;

and (D) Is able to comply with all applicable state laws and rules relating to the activities in which it intends to engage under this act.

(8) The name, residential address, and title of each financial backer and principal of the applicant.

Each individual, or lawful representative of a legal entity, shall submit an affidavit with the application setting forth:

(A) Any position of management or ownership during the preceding 10 years of a controlling interest in any other business, located inside or outside this state, manufacturing or distributing controlled substances.

(B) Whether the person or business has been convicted of a criminal offense graded higher than a summary offense or has had a permit relating to medical cannabis suspended or revoked in any administrative or judicial proceeding;

and (9) Any other information the bureau may require.

(b) Notice.

— An application shall include notice that a false statement made in the application is punishable under the applicable provisions of law.

§16A-6-3.

Granting of permit.

(a) The bureau may grant or deny a permit to a grower, processor, or dispensary.

In making a decision under this subsection, the bureau shall determine that:

(1) The applicant will maintain effective control of and prevent diversion of medical cannabis;

(2) The applicant will comply with all applicable laws of this state;

(3) The applicant is a resident of this state as defined in §29-22B-327 of this code or is organized under the law of this state.

If the applicant is a business entity, majority ownership in the business entity must be held by a state resident or residents (4) (3) The applicant is ready, willing, and able to properly carry on the activity for which a permit is sought;

(5) (4) The applicant possesses the ability to obtain in an expeditious manner sufficient land, buildings, and equipment to properly grow, process, or dispense medical cannabis;

(6) (5) It is in the public interest to grant the permit;

(7) (6) The applicant, including the financial backer or principal, is of good moral character and has the financial fitness necessary to operate;

(8) (7) The applicant is able to implement and maintain security, tracking, recordkeeping, and surveillance systems relating to the acquisition, possession, growth, manufacture, sale, delivery, transportation, distribution, or the dispensing of medical cannabis as required by the bureau;

and (9) (8) The applicant satisfies any other conditions as determined by the bureau.

(b) Nontransferability.

— A permit issued under this chapter shall be is nontransferable.

(c) Privilege.

— The issuance or renewal of a permit shall be is a revocable privilege.

(d) Dispensary location.

— The bureau shall consider the following when issuing a dispensary permit:

(1) Geographic location;

(2) Regional population;

(3) The number of patients suffering from serious medical conditions;

(4) The types of serious medical conditions;

(5) Access to public transportation;

(6) Approval by local health departments;

(7) Whether the county has disallowed the location of a grower, processor, or dispensary;

and (8) Any other factor the bureau deems considers relevant.

(e) Application procedure.

— The bureau shall establish a procedure for the fair and objective evaluation of all applications for all medical cannabis organization permits.

Such The evaluations shall score each applicant numerically according to standards set forth in this chapter.

§16A-6-4.

Notice.

[Repealed.] §16A-6-6.

Fees and other requirements.

The following apply:

(1) For a grower or processor:

(A) An initial application fee in the amount of $5,000 shall be paid.

The fee is nonrefundable;

(B)  A fee for a permit as a grower/processor in the amount of $50,000 shall be paid.

The permit shall be valid for one year.

Applicants shall submit the permit fee at the time of submission of the application.

The fee shall be returned if the permit is not granted;

(C) A renewal fee for the permit as a grower/processor in the amount of $5,000 shall be paid.

and shall cover renewal for all locations The renewal fee shall be returned if the renewal is not granted;

(D) An application to renew a permit must shall be filed with the bureau not more than six months nor less than four months prior to expiration;

(E) All fees shall be paid by certified check or money order;

(2) For a dispensary:

(A) An initial application fee in the amount of $2,500 shall be paid.

The fee is nonrefundable;

(B) A permit fee for a dispensary shall be is $10,000.

for each location The period of the permit is one year.

An applicant shall submit the permit fee at the time of submission of the application.

The fee shall be returned if the application is not granted;

(C) A renewal fee for the permit as a dispensary in the amount of $2,500 shall be paid.

The fee shall be returned if the renewal is not granted;

and shall cover renewal for all locations (D) An application to renew a permit must be filed with the bureau not more than six months nor less than four months prior to expiration;

and (E) All fees shall be paid by certified check or money order;

(3) A fee of $250 shall be is required when amending the application to indicate relocation within this state or the addition or deletion of approved activities by the medical cannabis organization;

and (4) Fees payable under this section shall be deposited into the fund.

§16A-6-12.

Convictions prohibited.

(a) The following individuals may not hold volunteer positions or positions with remuneration in or be affiliated with a medical cannabis organization, including a clinical registrant under §16A-14-1 et seq.

of this code, in any way if the individual has been convicted of any felony criminal offense related to the sale or possession of illegal drugs, narcotics, or controlled substances, or conspiracy thereof convicted of any provision of §61-5A-1 et seq.

of this code or substantially similar laws of other states or the federal government, convicted of any misdemeanor or felony offense involving fraud, deceit, crimes against the government, or crimes of dishonesty, or conspiracy of any of these offenses, any offense requiring the individual to register as a sex offender in this state or to register on the state child abuse registry:

(1) Financial backers;

(2) Principals;

and (3) Employees.

(b) If an individual seeking to hold a volunteer position or position with remuneration in or be affiliated with a dispensary is otherwise prohibited under subsection (a) of this section, such the individual may seek a waiver from the bureau in order to hold such a the position with a dispensary.

The allowance of the waiver, including any additional restrictions or conditions as part of the waiver, shall be in is at the discretion of the bureau:

Provided, That under no circumstances may a person prohibited under subsection (a) of this section from holding a position or being affiliated with a medical cannabis organization serve as a principal, financial backer, or manager who oversees conduct of the dispensary.

§16A-6-13.

Limitations on permits.

(a) The following limitations apply to approval of permits for growers, processors, and dispensaries, subject to the limitations in subsection (b) of this section:

(1) The bureau may not issue permits to more than 10 growers:

Provided, That each grower may have up to two locations per permit;

(2) The bureau may not issue permits to more than 10 processors;

(3) The bureau may not issue permits to more than 100 dispensaries;

(4) The bureau may not issue more than 10 individual dispensary permits to one person;

(5) The bureau may not issue more than one individual grower permit to one person;

(6) The bureau may not issue more than one individual processor permit to one person;

(7) A dispensary may only obtain medical cannabis from a grower or processor holding a valid permit under this act;

(8) A grower or processor may only provide medical cannabis to a dispensary holding a valid permit under this act;

and (9) A person may hold a grower permit, a processor permit, and a dispensary permit, or any combination thereof, concurrently.

(b) Before a permit may be issued, the bureau shall obtain the following:

(1) A written approval from the board of health for the county in which the permit is to be located and operate business.(2) a written statement from the county commission for the county in which the permit is to be located and conduct business that the county has not voted, pursuant to §16A-7-6 of this code, to disapprove a medical cannabis organization to be located or operate within the county.

§16A-6-14.

Employee licensure requirements.

(a) Any person employed by a medical cannabis organization involved in the growing, processing, or dispensing of medical cannabis shall be 18 years of age or older, and registered with the bureau.

(b) The bureau shall establish a registry of medical cannabis organization employees and may charge a registration fee not to exceed $25.

for each registrant.

article 7.  medical cannabis controls.

§16A-7-5.

Prices.

The bureau and the Tax Division of the Department of Revenue shall monitor the price of medical cannabis sold by growers, processors, and by dispensaries, including a per-dose price.

If the bureau and the Tax Division of the Department of Revenue determine that the prices are unreasonable or excessive, the bureau may implement a cap on the price of medical cannabis being sold for a period of six months.

The cap may be amended during the six-month period.

If the bureau and the Tax Division of and the Department of Revenue determine that the prices become unreasonable or excessive following the expiration of a six-month cap, additional caps may be imposed for periods not to exceed six months.

article 8.  dispensaries.

§16A-8-2.

Facility requirements.

(a) General rule.

— (1) A dispensary may only dispense medical cannabis in an indoor, enclosed, secure facility located within this state, as determined by the bureau.

(2) A dispensary may not operate on the same site as a facility used for growing and processing medical cannabis.

(3) A dispensary may not be located within 1,000 feet of the property line of a public, private, or parochial school or a daycare center, measured from front door to front door, along the street or streets.

(4) A dispensary may, pursuant to bureau conditions and limitations, sell medical devices and instruments which are needed to administer medical cannabis under this act.

(b) Adjustment or waiver of prohibition.

— The bureau may amend a prohibition under subsection (a)(3) subdivision (3), subsection (a) of this section if it is shown by clear and convincing evidence that the amendment is necessary to provide adequate access to patients.

An amendment may include additional security, physical plant of a facility, or other conditions necessary to protect children.

article 9.  tax on medical cannabis.

§16A-9-1.

Tax on medical cannabis.

(a) Tax imposed.

— For the privilege of engaging or continuing within this state in the business of a dispensary of medical cannabis, as defined in §16A-2-1 of this code, there is hereby levied upon and collected from every person exercising the privilege, a privilege tax.

(b) Rate and measure of tax.

— The rate of tax imposed by this section shall be 10 percent of the gross receipts the dispensary receives or accrues during the reporting period, depending upon its method of accounting for federal income tax purposes, from the sale of medical cannabis to a patient or to a caregiver:

Provided, That beginning on and after July 1, 2021, the rate of tax imposed by this section shall be 20 percent of the gross receipts the dispensary receives or accrues during the reporting period, depending upon its method of accounting for federal income tax purposes, from the sale of medical cannabis to a patient or to a caregiver.

The tax imposed by this section shall not be added by the dispensary as a separate charge or line item on any sales slip, invoice, receipt, other statement, or memorandum of the price paid by a patient, or caregiver.

(c) Definitions.

— For purposes of this article:

(1) “Gross receipts” means and includes the gross receipts, however denominated, derived from the sale, distribution, or transfer of medical cannabis, without any deduction on account of the cost of property sold;

the cost of materials used to grow, process, or sell the medical cannabis;

labor costs, taxes, royalties paid in cash or in kind, or otherwise;

interest or discount paid;

or any other expense, however denominated.

(2) “Person” includes any natural person, corporation, partnership, limited liability company, or other business entity as those terms are defined in §11-1-1 et seq.

of this code.

(d) Payment of tax and reports.