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An Act To Ensure Safety, Quality and Transparency in the Medical Marijuana Market and To Ensure Sufficient Funding for Regulation and Enforcement with Respect to the Retail Marijuana Industry
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 7 MRSA §2442, sub-§41, as enacted by IB 2015, c. 5, §1, is amended to read:
 
41. Retail marijuana testing facility.   "Retail marijuana testing facility" means an entity licensed and certified to analyze and certify the safety and potency of retail marijuana and, retail marijuana products and marijuana and marijuana products produced by registered primary caregivers registered pursuant to Title 22, section 2425, subsection 4 and dispensaries registered pursuant to Title 22, section 2428, subsection 2, paragraph A.
Sec. 2. 22 MRSA §2422, sub-§5-C, ¶A, as enacted by PL 2015, c. 475, §3, is amended to read:
 
A. Is licensed, certified or otherwise approved by the department in accordance with rules adopted by the department under section 2423-A, subsection 10, paragraph D or Title 7, chapter 417 to analyze contaminants in and the potency and cannabinoid profile of samples; and
Sec. 3.  22 MRSA §2422, sub-§14-B  is enacted to read:
 
14-B.  THC.     "THC" means tetrahydrocannabinol.
Sec. 4. 22 MRSA §2423-E, sub-§9, as enacted by PL 2015, c. 475, §18, is repealed and the following enacted in its place:
 
9.  Labels.     A registered primary caregiver shall affix a label on the packaging of any marijuana or product containing marijuana provided to a qualifying patient and that label must include, when applicable:
 
A.  The registration number of the registered primary caregiver;
 
B.  A net weight statement;
 
C.  THC potency;
 
D.  Solvents used in marijuana extraction; and
 
E.  Amount of THC per serving and the number of servings per package for the marijuana or product.
 
If a label contains information about contaminants, the cannabinoid profile or potency of the marijuana or product containing marijuana, this information on the label must be verified by a marijuana testing facility that is not owned by the registered primary caregiver if there is a marijuana testing facility licensed, certified or approved in accordance with this chapter.
Sec. 5.  22 MRSA §2423-E, sub-§§10 to 13  are enacted to read:
 
10.  Inspection of books and records.     A registered primary caregiver shall keep a complete set of all books and records in an electronic software system with an audit trail capability necessary to show fully the business transactions of the registered primary caregiver in an unalterable electronic form with audit trail capabilities for a period comprising the current tax year and the 5 immediately preceding tax years.
 
All books and records must be made available at all times during business hours for the inspection and examination by the department or its duly authorized representatives.
 
The department may require an annual inspection by an inspector to be selected by the department and may require the registered primary caregiver to furnish such information as the department considers necessary for the proper administration of this chapter. The cost of the inspection must be set annually by the department and must be paid by the registered primary caregiver. The department may require an audit to be made of the books and records on such occasions as it may consider necessary by an auditor to be selected by the department, and the cost of the audit must be paid by the registered primary caregiver. The inspector or auditor must have access to all premises, books and records of the registered primary caregiver.
 
11.  Independent testing and certification program.     A registered primary caregiver is subject to the independent testing and certification program developed and implemented pursuant to Title 7, section 2445 and rules adopted pursuant to Title 7, chapter 417, and:
 
A.  Testing must include, but is not limited to, analysis for residual solvents, poisons and toxins; harmful chemicals; dangerous molds and mildew; harmful microbes, such as Escherichia coli and salmonella; and pesticides;
 
B.  If test results indicate the presence of quantities of any substance determined to be injurious to health in any product, these products must be immediately quarantined and immediate notification to the persons responsible for enforcing the marijuana laws must be made. These products must be documented and properly destroyed; and
 
C.  Testing must verify THC potency representations included on a label.
 
12.  Inspection.     Any premises where marijuana or marijuana products are stored, cultivated, processed, sold, dispensed or tested by a registered primary caregiver who cultivates marijuana for medical use by a qualifying patient is subject to reasonable inspection by the department. The department may enter the cultivation site at any time, without notice, to carry out an inspection under this subsection. When any part of the premises consists of a locked area, upon demand to the registered primary caregiver this area must be made available for inspection, and, upon request by authorized representatives of the State or municipality, the registered primary caregiver shall open the area for inspection.
 
13.  Local safety inspections.     A registered primary caregiver, whether operating in the registered primary caregiver's primary residence or on premises that are not the registered primary caregiver's primary residence, may be subject to reasonable inspection by the local fire department, building inspector or code enforcement officer to confirm that no health or safety concerns are present and to enforce any applicable local ordinance or regulation. Local ordinances and regulations apply to registered primary caregivers subject to subsection 1 and section 2428, subsection 10.
Sec. 6. 22 MRSA §2428, sub-§5, as amended by PL 2011, c. 407, Pt. B, §32, is further amended to read:
 
5. Inspection.   A dispensary and any additional location at which the dispensary cultivates marijuana for medical use by a qualifying patient who has designated the dispensary to cultivate for the patient are subject to reasonable inspection by the department. The department may enter the dispensary and the one permitted additional location at which the dispensary cultivates marijuana at any time, without notice, to carry out an inspection under this subsection.
 
The premises, including any places of storage, where prepared marijuana or marijuana plants are stored, cultivated, sold, dispensed or tested are subject to inspection by the State or the municipality in which the premises are located and by the investigators of the State or municipality during all business hours and other times of apparent activity for the purpose of inspection or investigation. Access must be granted during business hours for examination of any inventory or books and records required to be kept by a dispensary. When any part of the premises consists of a locked area, upon demand to the dispensary this area must be made available for inspection, and, upon request by authorized representatives of the State or municipality, the dispensary shall open the area for inspection.
Sec. 7. 22 MRSA §2428, sub-§12, as enacted by PL 2015, c. 475, §24, is repealed and the following enacted in its place:
 
12.  Labels.     A registered dispensary shall affix a label on the packaging of any marijuana or product containing marijuana provided to a qualifying patient and that label must include, when applicable:
 
A.  The registration number of the registered dispensary;
 
B.  A net weight statement;
 
C.  THC potency;
 
D.  Solvents used in marijuana extraction; and
 
E.  Amount of THC per serving and the number of servings per package for the marijuana or product.
 
If a label contains information about contaminants, the cannabinoid profile or potency of the marijuana or product containing marijuana, this information on the label must be verified by a marijuana testing facility that is not owned by the registered dispensary if there is a marijuana testing facility licensed, certified or approved in accordance with this chapter.
Sec. 8.  22 MRSA §2428, sub-§§13 to 16  are enacted to read:
 
13.  Inspection of books and records.     A registered dispensary shall keep a complete set of all books and records in an electronic software system with an audit trail capability necessary to show fully the business transactions of the registered dispensary in an unalterable electronic form with audit trail capabilities for a period comprising the current tax year and the 5 immediately preceding tax years.
 
All books and records must be made available at all times during business hours for the inspection and examination by the department or its duly authorized representatives.
 
The department may require an annual audit by an auditor to be selected by the department and may require any registered dispensary to furnish such information as the department considers necessary for the proper administration of this chapter and may require an audit to be made of the books of account and records on such occasions as the department may consider necessary by an auditor to be selected by the department. The auditor must have access to all books and records of the registered dispensary, and the cost of the audit must be paid by the registered dispensary.
 
14.  Audits.     A registered dispensary shall obtain an independent financial audit annually, at the registered dispensary's expense, and shall provide a copy of the audit's findings to the department. This copy must be submitted to the department no later than 60 days prior to the registration expiration date, or at another time as the department may direct, for the previous fiscal year. When a registration is revoked, suspended or surrendered or expires, a registered dispensary shall file a final copy of the audit no later than 30 days following revocation, suspension, surrender or expiration.
 
15.  Independent testing and certification program.     A registered dispensary is subject to the independent testing and certification program developed and implemented pursuant to Title 7, section 2445 and rules adopted pursuant to Title 7, chapter 417, and:
 
A.  Testing must include, but is not limited to, analysis for residual solvents, poisons and toxins; harmful chemicals; dangerous molds and mildew; harmful microbes, such as Escherichia coli and salmonella; and pesticides;
 
B.  If test results indicate the presence of quantities of any substance determined to be injurious to health in any products, these products must be immediately quarantined and immediate notification to the persons responsible for enforcing the marijuana laws must be made. These products must be documented and properly destroyed; and
 
C.  Testing must verify THC potency representations included on a label.
 
16.  Local safety inspections.     A registered dispensary may be subject to inspection by the local fire department, building inspector or code enforcement officer to confirm that no health or safety concerns are present or to enforce any applicable local ordinance or regulation. Local ordinances and regulations apply to registered dispensaries subject to subsection 10 and section 2423-E, subsection 1.
Sec. 9. 36 MRSA §1817, sub-§2, as enacted by IB 2015, c. 5, §3, is repealed and the following enacted in its place:
 
2.  Tax on retail marijuana and retail marijuana products.     The tax on retail marijuana and retail marijuana products is as follows.
 
A.  A retail marijuana store and retail marijuana social club shall pay a special tax at the rate of 20% of the sales price for the retail marijuana and retail marijuana products sold at that retail marijuana store or retail marijuana social club.
 
B.  In addition to the special tax in paragraph A, retail marijuana and retail marijuana products are subject to the state sales tax under this chapter.
 
The bureau shall review the tax rate established under this subsection annually and report its findings and make recommendations to the Legislature as appropriate regarding adjustment to the tax rate.
Sec. 10. 36 MRSA §1817, sub-§3, as enacted by IB 2015, c. 5, §3, is amended to read:
 
3. Returns; payment of tax; penalty.   A retail marijuana store or retail marijuana social club shall prepare and file with the State Tax Assessor, on or before the last15th day of each month, a return made under penalty of perjury on a form prescribed and furnished by the state licensing authority together with payment of the sales tax due under this section. The return must report all sales of retail marijuana and retail marijuana products within the State during the preceding calendar month and such other information as the assessor requires. A retail marijuana store or retail marijuana social club shall keep a complete and accurate record in an unalterable electronic form at its principal place of business to substantiate all receipts and sales of retail marijuana and retail marijuana products.
Sec. 11. 36 MRSA §1817, sub-§7, as enacted by IB 2015, c. 5, §3, is repealed and the following enacted in its place:
 
7.  Application of special tax revenues.     The following provisions govern the application of revenues received from imposition of the special tax collected pursuant to subsection 2, paragraph A. On or before the last day of each month, the State Controller shall transfer the funds to the General Fund except that:
 
A.  Forty-five percent of the revenue must be forwarded directly to the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations to fund administration, regulatory development and enforcement of Title 7, chapter 417;
 
B.  Five percent of the revenue must be credited to the Department of Health and Human Services, Maine Center for Disease Control and Prevention for the purpose of an ongoing public awareness campaign to reduce youth marijuana, alcohol and tobacco consumption; and
 
C.  Ten percent of the revenue must be credited to fund up to 14 Investigative Agent positions in the Department of Public Safety, Maine Drug Enforcement Agency established after the effective date of this paragraph, up to 4 Assistant Attorney General positions established after the effective date of this paragraph that will be dedicated to prosecuting drug crimes and up to 4 District Court Judge positions established after the effective date of this paragraph to hear criminal drug cases, one to sit in Presque Isle, one to sit in Bangor, one to sit in Lewiston and one to sit in Portland.
 
Revenue may be appropriated to the Maine Criminal Justice Academy for the purpose of training law enforcement personnel on retail marijuana and retail marijuana products laws and rules. Funds appropriated to the Maine Criminal Justice Academy pursuant to this subsection may be used only for the actual costs incurred to provide the necessary education and training of law enforcement personnel.
Sec. 12. Effective date. Those sections of this Act that repeal and replace the Maine Revised Statutes, Title 36, section 1817, subsections 2 and 7 and amend Title 36, section 1817, subsection 3 take effect February 1, 2018.
 
SUMMARY
This bill amends the Maine Medical Use of Marijuana Act in the following ways.
1. It imposes mandatory testing, labeling and record-keeping requirements on registered dispensaries. It provides that registered dispensaries are subject to inspection by the local fire department, building inspector or code enforcement officer to confirm that no health or safety concerns are present and that local health and safety ordinances apply to registered dispensaries.
2. It imposes mandatory testing, labeling and record-keeping requirements on registered primary caregivers. It provides that registered primary caregivers are subject to inspection by the Department of Health and Human Services to ensure regulatory compliance. It provides that registered primary caregivers are subject to inspection by the local fire department, building inspector or code enforcement officer to confirm that no health or safety concerns are present and that local health and safety ordinances apply to registered primary caregivers.
3. It provides that mandatory testing of medical marijuana and medical marijuana products may be conducted by testing facilities licensed under either the Maine Medical Use of Marijuana Act or the Marijuana Legalization Act.
4. It imposes a special tax of 20% on retail marijuana and retail marijuana products sold by retail marijuana stores and retail marijuana social clubs to ensure that the tax revenue generated is sufficient to fund enforcement and regulation with respect to the retail marijuana industry. It also provides that in addition to this special tax, retail marijuana and retail marijuana products are subject to the state sales tax.