An Act To Regulate and Tax Marijuana
Sec. A-1. 36 MRSA c. 723 is enacted to read:
§ 4921. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
§ 4922. Excise tax on marijuana
The return must include further information as the assessor may prescribe and must show a credit for any marijuana products exempted as provided in subsection 5. Records must be maintained to substantiate the exemption. Tax previously paid on marijuana products that are returned to a marijuana establishment because the product has become unfit for use, sale or consumption and for marijuana products that are returned to a marijuana cultivation facility that are subsequently destroyed by the marijuana cultivation facility may be taken as a credit on a subsequent return. The assessor may either witness the destruction of the product or may accept another form of proof that the product has been destroyed by the marijuana cultivation facility.
A person who is not a marijuana cultivation facility licensed pursuant to Title 22, section 2430-K who imports, receives or otherwise acquires marijuana products for use or consumption in the State from a person other than a licensed marijuana cultivation facility shall file, on or before the last day of the month following each month in which marijuana products were acquired, a return on a form prescribed by the assessor together with payment of the tax imposed by this chapter at the rate provided in subsection 1. The return must report the quantity of marijuana products imported, received or otherwise acquired from a person other than a licensed marijuana cultivation facility during the previous calendar month and additional information the assessor may require.
§ 4923. Application of revenues
Revenues derived from the tax imposed by this chapter must be credited to a General Fund suspense account. On or before the last day of each month, the State Controller shall transfer 10% of the revenues received by the assessor during the preceding month pursuant to the tax imposed by section 4922 to the Marijuana Regulation and Licensing Fund established under Title 22, section 2430-M. Until January 1, 2022, on or before the last day of each month, the State Controller shall transfer 5% of the revenues received by the assessor during the preceding month pursuant to the tax imposed by section 4922 to the Marijuana Research Fund established under Title 22, section 2430-Q. On or before the last day of each month, the State Controller shall transfer the remainder of the revenues to the General Fund.
§ 4924. Annual report
The bureau shall report annually beginning January 30, 2015 the amount of tax revenue collected pursuant to section 4922 and the amount distributed to each fund pursuant to section 4923 to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over taxation matters.
Sec. A-2. Review and report recommendations. The Department of Administrative and Financial Services, Bureau of Revenue Services shall review methods for ensuring that all marijuana that is sold in the State is assessed, except marijuana that is exempt pursuant to the Maine Revised Statutes, Title 36, section 4922, subsection 5. The bureau shall report its findings and recommendations, including any necessary legislation, to the Joint Standing Committee on Taxation by February 15, 2014. The Joint Standing Committee on Taxation is authorized to submit a bill to the Second Regular Session of the 126th Legislature based on the subject matter of the report.
Sec. B-1. 22 MRSA §2383, sub-§1, as repealed and replaced by PL 2009, c. 652, Pt. B, §6, is amended to read:
Sec. B-2. 22 MRSA §2383-D is enacted to read:
§ 2383-D. False identification
As used in this section, "minor" means a person who is under 21 years of age.
(1) A minor who violates subsection 1 commits a civil violation for which a fine of not less than $200 and not more than $400 must be adjudged.
(2) A minor who violates subsection 1 after having previously violated subsection 1 commits a civil violation for which a fine of not less than $300 and not more than $600 must be adjudged, none of which may be suspended except as provided in paragraph B.
(3) A minor who violates subsection 1 after having previously violated subsection 1 2 or more times commits a civil violation for which a fine of $600 must be adjudged, none of which may be suspended except as provided in paragraph B.
When a minor is adjudged to have committed a first offense under subsection 1, the judge shall inform that minor that the fines for the 2nd and subsequent offenses are mandatory and cannot be suspended except as provided in paragraph B. Failure to inform the minor that subsequent fines are mandatory is not a ground for suspension of any subsequent fine.
Sec. C-1. 22 MRSA c. 558-D is enacted to read:
MARIJUANA REGULATION ACT
§ 2430-E. Short title
This chapter may be known and cited as the Marijuana Regulation Act.
§ 2430-F. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
§ 2430-G. Exemption from criminal and civil penalties, seizure or forfeiture
Notwithstanding Title 17-A, chapter 45 or any other provision of law to the contrary and except as provided in this chapter, the actions specified in this chapter are legal under the laws of this State and do not constitute a civil or criminal offense under the laws of this State or the law of any political subdivision within this State or serve as a basis for seizure or forfeiture of assets under state law.
§ 2430-H. Personal use of marijuana
§ 2430-I. Marijuana establishments
(1) Possess, display or transport marijuana, marijuana products or marijuana accessories;
(2) Purchase marijuana from a marijuana cultivation facility;
(3) Purchase marijuana or marijuana products from a marijuana product manufacturing facility; or
(4) Sell marijuana, marijuana products or marijuana accessories to consumers.
(1) Cultivate, harvest, process, package, transport, display or possess marijuana;
(2) Deliver or transfer marijuana to a marijuana testing facility;
(3) Sell marijuana to another marijuana cultivation facility, a marijuana product manufacturing facility or a retail marijuana store; or
(4) Purchase marijuana from another marijuana cultivation facility.
(1) Package, process, transport, manufacture, display or possess marijuana or marijuana products;
(2) Deliver or transfer marijuana or marijuana products to a marijuana testing facility;
(3) Sell marijuana or marijuana products to a retail marijuana store or a marijuana product manufacturing facility;
(4) Purchase marijuana from a marijuana cultivation facility; or
(5) Purchase marijuana or marijuana products from a marijuana product manufacturing facility.
A marijuana 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 activities conducted lawfully in accordance with paragraphs A to D.
§ 2430-J. Bureau of Marijuana Regulation, Licensing and Enforcement
The Bureau of Marijuana Regulation, Licensing and Enforcement is created within the Department of Administrative and Financial Services. The bureau shall:
§ 2430-K. Licensing of marijuana establishments
The bureau may license one retail marijuana store in a locality where the population is less than 2,000 if the municipality or county commissioners for the locality have not prohibited retail marijuana stores. The bureau may grant a locality's request to allow additional marijuana stores. The bureau may consider the impact of seasonal population or tourism and other related information provided by the locality requesting an additional marijuana establishment location.
(1) Unauthorized entrance into areas containing marijuana;
(2) The theft of marijuana located on the premises or in transit to or from the premises by the licensee;
(3) Tampering with or adulteration of the marijuana products;
(4) Unauthorized access to marijuana or marijuana accessories; and
(5) Access to marijuana by or sales of marijuana to minors, except that a marijuana establishment that is also a primary caregiver or a dispensary may continue to serve its qualifying patients as permitted under chapter 558-C.
(1) That the licensee's license is scheduled to expire;
(2) The date of expiration; and
(3) That all sales of marijuana must be suspended after the date of expiration and remain suspended until the license is properly renewed.
Failure by the bureau to notify a licensee pursuant to the paragraph does not excuse a licensee from being charged with a violation of this chapter.
§ 2430-L. Local control
(1) Govern the time, place and manner of operations and number of marijuana establishments;
(2) Establish procedures for the issuance, suspension and revocation of a license issued by the locality in accordance with paragraph C or D;
(3) Establish a schedule of annual operating, licensing and application fees for a marijuana establishment. This subparagraph applies only if the application fee or licensing fee is submitted to a locality in accordance with paragraph C or D; and
(4) Establish civil penalties for violation of an ordinance, rule or regulation governing the time, place and manner that a marijuana establishment may operate in that locality.
§ 2430-M. Marijuana Regulation and Licensing Fund established
§ 2430-N. Defense of state law
The Office of the Attorney General shall to the best of the abilities of the office and in good faith advocate to quash any federal subpoena for records involving marijuana establishments.
§ 2430-O. Research authorized
Notwithstanding the provisions of this chapter regulating the distribution of marijuana, a scientific or medical researcher who has previously published peer-reviewed research may purchase, possess and securely store marijuana for purposes of conducting research. A scientific or medical researcher may administer and distribute marijuana to a participant in research who is at least 21 years of age after receiving informed consent from that participant.
§ 2430-P. Construction
§ 2430-Q. Marijuana Research Fund established
Sec. C-2. Rulemaking. By June 1, 2014, the Department of Administrative and Financial Services, Bureau of Marijuana Regulation, Licensing and Enforcement shall 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 marijuana establishments pursuant to Title 22, chapter 558-D. These rules must be developed by the bureau and may not be contracted out to an entity outside the bureau. These rules may not prohibit the operation of marijuana establishments, either expressly or through restrictions that make the operation of marijuana establishments unreasonably impracticable. As used in this section, "unreasonably impracticable" means that the measures necessary to comply with the rules require such a high investment of risk, money, time or other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably 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 marijuana establishment license, renewal registration forms and associated licensing and renewal fee schedules, except that an application, licensing or renewal fee may not exceed $5,000;
3. In making a determination between competing applicants for the same type of marijuana establishment license, if there are more applicants than licenses available, that preference must be given to a member or officer of a board of a corporation operating a registered dispensary under Title 22, chapter 558-C or a senior manager of registered dispensary under Title 22, chapter 558-C;
4. Procedures allowing an applicant who has been denied a license due to failure to meet the 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 rules governing 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 against unauthorized employee access to marijuana;
8. Minimum record-keeping requirements, including the following:
Rules developed pursuant to this subsection may not require a consumer to provide a retail marijuana store with personal information other than government-issued identification to determine the consumer's age or require the retail marijuana store to acquire and record personal information about its consumers;
9. Health and safety rules and standards for the manufacture of marijuana products and the cultivation of marijuana;
10. Labeling requirements for marijuana and marijuana products sold or distributed by a marijuana establishment;
11. Restrictions on the advertising, signs and display of marijuana and marijuana products;
12. Minimum security requirements, including standards to reasonably protect against unauthorized access to marijuana at all stages of the licensee's possession, transportation, storage and cultivation of marijuana; these security requirements may not prohibit outdoor cultivation in an enclosed, secured space;
13. Procedures for enforcing Title 22, section 2430-K, subsections 9 and 10, including civil penalties for violations, procedures for suspending or terminating the license of a licensee that violates licensing provisions or the rules adopted pursuant to this section and procedures for appeals of penalties or licensing actions;
14. A streamlined application and approval process for a person named as a primary caregiver pursuant to Title 22, section 2422, subsection 8-A and for an entity that is operating as a registered dispensary under Title 22, section 2428; and
15. Any other oversight requirements that the bureau determines are necessary to administer the laws relating to licensing marijuana establishments.
Notwithstanding the limits on retail marijuana stores specified in Title 22, section 2430-K or 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% of the number of licenses allowed per municipality, but must issue at least one.
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 the locality or from enacting reasonable regulations applicable to licensees.
Sec. C-3. Marijuana Research Fund rulemaking. By July 1, 2014, the Department of Health and Human Services shall adopt emergency major substantive rules, as defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A, to implement the provisions of Title 22, section §2430-Q regarding administration and uses of the Marijuana Research Fund.
Rules adopted pursuant to this section must include:
1. Application procedures, forms, deadlines and eligibility criteria for grants;
2. Selection criteria and composition of a grant review committee, which must include researchers with expertise in medical or scientific research;
3. Criteria for awarding grants, dates for decisions of grant awards and methods for disbursement of funds;
4. Minimum record-keeping, reporting and publication requirements for persons awarded grants; and
5. Any other oversight requirements that the department determines necessary to administer the grants.
Sec. D-1. 22 MRSA §2423-A, sub-§3, ¶¶A and B, as enacted by PL 2009, c. 631, §21 and affected by §51, are amended to read:
Sec. D-2. 22 MRSA §2423-A, sub-§3, ¶D, as enacted by PL 2011, c. 407, Pt. B, §16, is amended to read:
Sec. E-1. 15 MRSA §5821-A, as amended by IB 2009, c. 1, §1, is further amended to read:
§ 5821-A. Property not subject to forfeiture based on use of marijuana
Property is not subject to forfeiture under this chapter if the activity that subjects the person's property to forfeiture is medical use of related to marijuana use and the person meets the requirements for medical use of marijuana under Title 22, chapter 558-C or personal or commercial marijuana 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, is further amended to read:
(1) Metal, wooden, acrylic, glass, stone, plastic or ceramic pipes with or without screens, permanent screens, hashish heads or punctured metal bowls;
(2) Water pipes;
(3) Carburetion tubes and devices;
(4) Smoking and carburetion masks;
(5) Roach clips, meaning objects used to hold burning material, such as a marijuana cigarette that has become too small or too short to be held in the hand;
(6) Miniature cocaine spoons and cocaine vials;
(7) Chamber pipes;
(8) Carburetor pipes;
(9) Electric pipes;
(10) Air-driven pipes;
(12) Bongs; or
(13) Ice pipes or chillers.
Sec. E-3. 17-A MRSA §1111-A, sub-§§4-A and 4-B, as enacted by PL 2011, c. 464, §20, are amended to read:
(1) At least 16 years of age. Violation of this subparagraph is a Class E crime; or
(2) Less than 16 years of age. Violation of this subparagraph is a Class D crime; or
Sec. E-4. 17-A MRSA §1117, sub-§4, as enacted by PL 2009, c. 631, §3 and affected by §51, is amended to read:
Sec. F-1. 7 MRSA §483, first ¶, as amended by PL 2011, c. 407, Pt. A, §1, is further amended to read:
For the purpose of this chapter and chapter 103, unless the term is more specifically defined, "adulterated" means made impure or inferior by adding extraneous ingredients. Goods that are prepared in food establishments that are licensed facilities under Title 22, section 2167 and that contain marijuana for medical use by a qualifying patient, pursuant to Title 22, chapter 558-C, and a retail marijuana store that sells food containing marijuana pursuant to Title 22, chapter 558-D are not considered to be adulterated under this subchapter.
Sec. F-2. 7 MRSA §2231, sub-§3, as enacted by PL 2009, c. 320, §1, is amended to read:
Sec. F-3. 7 MRSA §2231, sub-§4, as enacted by PL 2009, c. 320, §1, is amended to read:
Sec. F-4. 7 MRSA §2231, sub-§5, as enacted by PL 2009, c. 320, §1, is repealed.
Sec. F-5. 7 MRSA §2231, sub-§8, as enacted by PL 2009, c. 320, §1, is repealed.
Sec. F-6. 22 MRSA §2152, sub-§4-A, as amended by PL 2011, c. 407, Pt. A, §2, is further amended to read:
Sec. F-7. 22 MRSA §2158, as amended by PL 2011, c. 407, Pt. A, §3 and amended 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 such substance is required in the production thereof or cannot be avoided by good manufacturing practice, must be deemed to be unsafe for purposes of the application of section 2156, subsection 1, paragraph B; but when such substance is so required or cannot be avoided, the Commissioner of Agriculture, Conservation and Forestry shall adopt rules limiting the quantity therein or thereon to such extent as the commissioner finds necessary for the protection of public health, and any quantity exceeding the limits so fixed must be deemed to be unsafe for purposes of the application of section 2156, subsection 1, paragraph B. While such a rule is in effect limiting the quantity of any such substance in the case of any food, such food may not, by reason of bearing or containing any added amount of such substance, be considered to be adulterated within the meaning of section 2156, subsection 1, paragraph A. In determining the quantity of such added substance to be tolerated in or on different articles of food, the commissioner shall take into account the extent to which the use of such substance is required or cannot be avoided in the production of each such article and the other ways in which the consumer may be affected by the same or other poisonous or deleterious substances. Goods that are prepared by a primary caregiver under section 2152, subsection 4-A, paragraph G or in a food establishment that is a licensed facility under section 2167 and that contain marijuana for medical use by a qualifying patient, pursuant to chapter 558-C, or that contain marijuana and are prepared for sale in a retail marijuana store pursuant to chapter 558-D are not considered to be adulterated under this subchapter.
Sec. F-8. 26 MRSA §772, sub-§2, as amended by PL 2009, c. 631, §47 and affected by §51, is further amended to read:
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:
Conduct allowed by Title 22, chapter 558-C or 558-D may not be the basis for a finding of a lack of good moral character.
Sec. H-1. Statutory referendum procedure; submission at election; form of question; effective date. This Act must be submitted to the legal voters of the State at a statewide election held in the month of November following passage of this Act. The municipal officers of this State shall notify the inhabitants of their respective cities, towns and plantations to meet, in the manner prescribed by law for holding a statewide election, to vote on the acceptance or rejection of this Act by voting on the following question:
"Do you favor allowing adults 21 years of age and older to engage in the personal use of marijuana, regulating commercial marijuana-related activities and imposing a tax on the sale of marijuana?"
The legal voters of each city, town and plantation shall vote by ballot on this question and designate their choice by a cross or check mark placed within a corresponding square below the word "Yes" or "No." The ballots must be received, sorted, counted and declared in open ward, town and plantation meetings and returns made to the Secretary of State in the same manner as votes for members of the Legislature. The Governor shall review the returns. If a majority of the legal votes are cast in favor of this Act, the Governor shall proclaim the result without delay and this Act becomes effective 30 days after the date of the proclamation.
The Secretary of State shall prepare and furnish to each city, town and plantation all ballots, returns and copies of this Act necessary to carry out the purposes of this referendum.
This bill reforms state marijuana laws by establishing an excise tax on marijuana, allowing the personal use and cultivation of marijuana and allowing, regulating and licensing certain commercial marijuana-related activities, while providing provisions to protect minors, employers and schools.
Part A of the bill establishes a tax rate of $50 per ounce for marijuana that is sold or transferred by licensed marijuana cultivation facilities. It directs the State Controller to distribute 10% of the revenue to regulating marijuana establishments, 5% to research into marijuana until January 1, 2021 and the remainder to the General Fund. It directs the Department of Administrative and Financial Services, Bureau of Revenue Services to report annually, beginning January 30, 2015, the amount of tax revenue generated and the amount distributed to each program to the joint standing committees of the Legislature having jurisdiction over appropriations and financial affairs and taxation matters. The bill directs the Bureau of Revenue Services to review methods for ensuring that all marijuana that is sold in the State is assessed and to report its findings and recommendations to the Joint Standing Committee on Taxation by February 15, 2014.
Part B removes the civil violation for adults 21 years of age and older who possess up to 2 1/2 ounces of marijuana and creates a new civil violation for minors who present false identification to a retail marijuana store.
Part C of the bill allows a person 21 years of age or older to possess, purchase and use marijuana within certain limits and to cultivate a limited amount of marijuana for personal use. It allows a person to possess marijuana paraphernalia and up to 2 1/2 ounces of marijuana. It allows a person to cultivate up to 6 marijuana plants, including seedlings, and to purchase up to 2 1/2 ounces of marijuana, marijuana paraphernalia and marijuana seedlings from someone who is licensed to sell these products. The bill imposes the same type of restrictions on marijuana use that apply to tobacco use and that ban smoking in other public places. It requires those cultivating marijuana to secure it from access by unauthorized persons and access by minors. It also provides protections for schools and employers.
It includes specific requirements for the operations of commercial marijuana-related activities regarding the location of operations, security measures, labeling and record keeping. It allows localities to limit the number of each of 4 types of licensees, to regulate them or to ban them. It further limits the number of retail marijuana stores based on the size of the municipality. It establishes the Bureau of Marijuana Regulation, Licensing and Enforcement in the Department of Administrative and Financial Services. The bureau is required to adopt emergency major substantive rules by June 1, 2014 for the licensing and regulation of marijuana establishments. Included in the rules must be a provision giving preference for licensing to a member or officer of a board of a corporation operating a registered dispensary under the Maine Medical Use of Marijuana Act or a senior manager of a registered dispensary. Until the initial rules adopted by the bureau are reviewed by the Legislature, the bureau is permitted to issue only 25% of the number of licenses for a retail marijuana store allowed in a municipality, but must issue at least one. The bill creates the Marijuana Regulations and Licensing Fund to provide a funding mechanism for regulation of commercial marijuana-related activities. Part C of the bill also establishes the Marijuana Research Fund, which is funded by part of the revenue generated from the marijuana tax. The Department of Health and Human Services is required to adopt rules for administering the fund by July 1, 2014.
Part D of the bill changes the requirement for patients, primary caregivers and dispensaries to keep marijuana in an enclosed, locked facility. Instead, it requires that the marijuana be secured from unauthorized access or from access by a person under 21 years of age.
Part E of the bill updates the existing exceptions regarding possession of marijuana in the Maine Criminal Code to reflect the use permitted by this legislation.
Part F of the bill removes the fingerprinting and criminal history record check requirements from the existing laws that allow a person to apply to the Department of Agriculture, Conservation and Forestry for a license to grow industrial hemp. It removes provisions in the law that make licensing of industrial hemp farming contingent upon federal action and that require licensees to document the type of hemp planted and to provide notification of each sale. This Part also updates various provisions of the Maine Revised Statutes, Title 7 that are affected by changes in terminology proposed to the Maine medical marijuana law in this bill and in Title 26 to prohibit the employment of a person under 21 years of age in an establishment licensed for commercial marijuana-related activities.
Part G of the bill provides that a person cannot be found to lack "good moral character" for personal, medical or commercial marijuana activities allowed by this legislation for purposes of obtaining a permit to carry a concealed handgun.
Part H of the bill requires this legislation to be submitted to statewide referendum for approval by the voters of the State.