SF 1070

as introduced - 91st Legislature (2019 - 2020) Posted on 03/25/2019 08:50am

A bill for an act
relating to health; modifying medical cannabis requirements; appropriating money;
amending Minnesota Statutes 2018, sections 152.23; 152.27, subdivision 4; 152.28,
subdivision 1; 152.29, subdivisions 1, 3; 152.33, subdivision 1; 290.0132, by
adding a subdivision; 290.0134, by adding a subdivision; proposing coding for
new law in Minnesota Statutes, chapter 152.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 152.23, is amended to read:

152.23 LIMITATIONS.

(a) Nothing in sections 152.22 to 152.37 permits any person to engage in and does not
prevent the imposition of any civil, criminal, or other penalties for:

(1) undertaking any task under the influence of medical cannabis that would constitute
negligence or professional malpractice;

(2) possessing or engaging in the use of medical cannabis:

(i) on a school bus or van new text begin , except as permitted under section 152.345 new text end ;

(ii) on the grounds of any preschool deleted text begin or primary deleted text end new text begin , elementary, new text end or secondary school new text begin , except
as permitted under section 152.345 new text end ;

(iii) in any correctional facility; or

(iv) on the grounds of any child care facility or home day care;

(3) vaporizing medical cannabis pursuant to section 152.22, subdivision 6:

(i) on any form of public transportation;

(ii) where the vapor would be inhaled by a nonpatient minor child; or

(iii) in any public place, including any indoor or outdoor area used by or open to the
general public or a place of employment as defined under section 144.413, subdivision 1b;
and

(4) operating, navigating, or being in actual physical control of any motor vehicle,
aircraft, train, or motorboat, or working on transportation property, equipment, or facilities
while under the influence of medical cannabis.

(b) Nothing in sections 152.22 to 152.37 require the medical assistance and
MinnesotaCare programs to reimburse an enrollee or a provider for costs associated with
the medical use of cannabis. Medical assistance and MinnesotaCare shall continue to provide
coverage for all services related to treatment of an enrollee's qualifying medical condition
if the service is covered under chapter 256B or 256L.

Sec. 2.

Minnesota Statutes 2018, section 152.27, subdivision 4, is amended to read:

Subd. 4.

Registered designated caregiver.

(a) The commissioner shall register a
designated caregiver for a patient if the patient's health care practitioner has certified that
the patient, in the health care practitioner's medical opinion, is developmentally or physically
disabled and, as a result of that disability, the patient is unable to self-administer medication
or acquire medical cannabis from a distribution facility and the caregiver has agreed, in
writing, to be the patient's designated caregiver. As a condition of registration as a designated
caregiver, the commissioner shall require the person to:

(1) be at least 21 years of age;

(2) agree to only possess any medical cannabis for purposes of assisting the patient; and

(3) agree that if the application is approved, the person will not be a registered designated
caregiver for more than one patient, unless the patients reside in the same residence.

(b) The commissioner shall conduct a criminal background check on the designated
caregiver prior to registration to ensure that the person does not have a conviction for a
disqualifying felony offense. Any cost of the background check shall be paid by the person
seeking registration as a designated caregiver.

new text begin (c) A school nurse or other appropriate school personnel as designated by a school district
may be registered as a designated caregiver for a student who is a registered patient for the
purpose of section 152.345.
new text end

Sec. 3.

Minnesota Statutes 2018, section 152.28, subdivision 1, is amended to read:

Subdivision 1.

Health care practitioner duties.

(a) Prior to a patient's enrollment in
the registry program, a health care practitioner shall:

(1) determine, in the health care practitioner's medical judgment, whether a patient suffers
from a qualifying medical condition, and, if so determined, provide the patient with a
certification of that diagnosis;

(2) determine whether a patient is developmentally or physically disabled and, as a result
of that disability, the patient is unable to self-administer medication or acquire medical
cannabis from a distribution facility, and, if so determined, include that determination on
the patient's certification of diagnosis;

(3) advise patients, registered designated caregivers, and parents or legal guardians who
are acting as caregivers of the existence of any nonprofit patient support groups or
organizations;

(4) provide explanatory information from the commissioner to patients with qualifying
medical conditions, including disclosure to all patients about the experimental nature of
therapeutic use of medical cannabis; the possible risks, benefits, and side effects of the
proposed treatment; the application and other materials from the commissioner; and provide
patients with the Tennessen warning as required by section 13.04, subdivision 2; and

(5) agree to continue treatment of the patient's qualifying medical condition and report
medical findings to the commissioner.

(b) Upon notification from the commissioner of the patient's enrollment in the registry
program, the health care practitioner shall:

(1) participate in the patient registry reporting system under the guidance and supervision
of the commissioner;

(2) report health records of the patient throughout the ongoing treatment of the patient
to the commissioner in a manner determined by the commissioner and in accordance with
subdivision 2;

(3) determine, on a yearly basis, if the patient continues to suffer from a qualifying
medical condition and, if so, issue the patient a new certification of that diagnosis; and

(4) otherwise comply with all requirements developed by the commissioner.

new text begin (c) A health care practitioner may conduct a patient assessment to issue a recertification
as required under paragraph (b), clause (3), via telemedicine as defined under section
62A.671, subdivision 9.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end Nothing in this section requires a health care practitioner to participate in the
registry program.

Sec. 4.

Minnesota Statutes 2018, section 152.29, subdivision 1, is amended to read:

Subdivision 1.

Manufacturer; requirements.

(a) A manufacturer shall operate deleted text begin four deleted text end new text begin
eight new text end distribution facilities, which may include the manufacturer's single location for
cultivation, harvesting, manufacturing, packaging, and processing but is not required to
include that location. deleted text begin A manufacturer is required to begin distribution of medical cannabis
from at least one distribution facility by July 1, 2015. All distribution facilities must be
operational and begin distribution of medical cannabis by July 1, 2016. The distribution
facilities shall be located deleted text end new text begin The commissioner shall designate the geographical service areas
to be served by each manufacturer new text end based on geographical need throughout the state to
improve patient access. deleted text begin A manufacturer shall disclose the proposed locations for the
distribution facilities to the commissioner during the registration process. deleted text end new text begin A manufacturer
shall not have more than two distribution facilities in each geographical service area assigned
to the manufacturer by the commissioner. new text end A manufacturer shall operate only one location
where all cultivation, harvesting, manufacturing, packaging, and processing shall be
conducted. deleted text begin Any deleted text end new text begin This location may be one of the manufacturer's distribution facility sites.
The new text end additional distribution facilities may dispense medical cannabis and medical cannabis
products but may not contain any medical cannabis in a form other than those forms allowed
under section 152.22, subdivision 6, and the manufacturer shall not conduct any cultivation,
harvesting, manufacturing, packaging, or processing at deleted text begin an additional deleted text end new text begin the other new text end distribution
facility deleted text begin site deleted text end new text begin sites new text end . Any distribution facility operated by the manufacturer is subject to all of
the requirements applying to the manufacturer under sections 152.22 to 152.37, including,
but not limited to, security and distribution requirements.

(b) A medical cannabis manufacturer shall contract with a laboratory approved by the
commissioner, subject to any additional requirements set by the commissioner, for purposes
of testing medical cannabis manufactured by the medical cannabis manufacturer as to
content, contamination, and consistency to verify the medical cannabis meets the
requirements of section 152.22, subdivision 6. The cost of laboratory testing shall be paid
by the manufacturer.

(c) The operating documents of a manufacturer must include:

(1) procedures for the oversight of the manufacturer and procedures to ensure accurate
record keeping; and

(2) procedures for the implementation of appropriate security measures to deter and
prevent the theft of medical cannabis and unauthorized entrance into areas containing medical
cannabis.

(d) A manufacturer shall implement security requirements, including requirements for
protection of each location by a fully operational security alarm system, facility access
controls, perimeter intrusion detection systems, and a personnel identification system.

(e) A manufacturer shall not share office space with, refer patients to a health care
practitioner, or have any financial relationship with a health care practitioner.

(f) A manufacturer shall not permit any person to consume medical cannabis on the
property of the manufacturer.

(g) A manufacturer is subject to reasonable inspection by the commissioner.

(h) For purposes of sections 152.22 to 152.37, a medical cannabis manufacturer is not
subject to the Board of Pharmacy licensure or regulatory requirements under chapter 151.

(i) A medical cannabis manufacturer may not employ any person who is under 21 years
of age or who has been convicted of a disqualifying felony offense. An employee of a
medical cannabis manufacturer must submit a completed criminal history records check
consent form, a full set of classifiable fingerprints, and the required fees for submission to
the Bureau of Criminal Apprehension before an employee may begin working with the
manufacturer. The bureau must conduct a Minnesota criminal history records check and
the superintendent is authorized to exchange the fingerprints with the Federal Bureau of
Investigation to obtain the applicant's national criminal history record information. The
bureau shall return the results of the Minnesota and federal criminal history records checks
to the commissioner.

(j) A manufacturer may not operate in any location, whether for distribution or cultivation,
harvesting, manufacturing, packaging, or processing, within 1,000 feet of a public or private
school existing before the date of the manufacturer's registration with the commissioner.

(k) A manufacturer shall comply with reasonable restrictions set by the commissioner
relating to signage, marketing, display, and advertising of medical cannabis.

Sec. 5.

Minnesota Statutes 2018, section 152.29, subdivision 3, is amended to read:

Subd. 3.

Manufacturer; distribution.

(a) A manufacturer shall require that employees
licensed as pharmacists pursuant to chapter 151 be the only employees to give final approval
for the distribution of medical cannabis to a patient. new text begin A manufacturer may transport medical
cannabis products that have been cultivated, harvested, manufactured, packaged, and
processed by that manufacturer to another registered manufacturer for the other manufacturer
to distribute.
new text end

(b) A manufacturer may deleted text begin dispense deleted text end new text begin distribute new text end medical cannabis products, whether or not
the products have been manufactured by deleted text begin the deleted text end new text begin that new text end manufacturer deleted text begin , but is not required to dispense
medical cannabis products deleted text end .

(c) Prior to distribution of any medical cannabis, the manufacturer shall:

(1) verify that the manufacturer has received the registry verification from the
commissioner for that individual patient;

(2) verify that the person requesting the distribution of medical cannabis is the patient,
the patient's registered designated caregiver, or the patient's parent or legal guardian listed
in the registry verification using the procedures described in section 152.11, subdivision
2d;

(3) assign a tracking number to any medical cannabis distributed from the manufacturer;

(4) ensure that any employee of the manufacturer licensed as a pharmacist pursuant to
chapter 151 has consulted with the patient to determine the proper dosage for the individual
patient after reviewing the ranges of chemical compositions of the medical cannabis and
the ranges of proper dosages reported by the commissioner. For purposes of this clause, a
consultation may be conducted remotely using a videoconference, so long as the employee
providing the consultation is able to confirm the identity of the patient, the consultation
occurs while the patient is at a distribution facility, and the consultation adheres to patient
privacy requirements that apply to health care services delivered through telemedicine;

(5) properly package medical cannabis in compliance with the United States Poison
Prevention Packing Act regarding child-resistant packaging and exemptions for packaging
for elderly patients, and label distributed medical cannabis with a list of all active ingredients
and individually identifying information, including:

(i) the patient's name and date of birth;

(ii) the name and date of birth of the patient's registered designated caregiver or, if listed
on the registry verification, the name of the patient's parent or legal guardian, if applicable;

(iii) the patient's registry identification number;

(iv) the chemical composition of the medical cannabis; and

(v) the dosage; and

(6) ensure that the medical cannabis distributed contains a maximum of a 30-day supply
of the dosage determined for that patient.

(d) A manufacturer shall require any employee of the manufacturer who is transporting
medical cannabis or medical cannabis products to a distribution facility new text begin or to another
registered manufacturer new text end to carry identification showing that the person is an employee of
the manufacturer.

Sec. 6.

Minnesota Statutes 2018, section 152.33, subdivision 1, is amended to read:

Subdivision 1.

Intentional diversion; criminal penalty.

In addition to any other
applicable penalty in law, a manufacturer or an agent of a manufacturer who intentionally
transfers medical cannabis to a person other than new text begin another registered manufacturer, new text end a patient,
a registered designated caregiver or, if listed on the registry verification, a parent or legal
guardian of a patient is guilty of a felony punishable by imprisonment for not more than
two years or by payment of a fine of not more than $3,000, or both. A person convicted
under this subdivision may not continue to be affiliated with the manufacturer and is
disqualified from further participation under sections 152.22 to 152.37.

Sec. 7.

new text begin [152.345] POSSESSION AND USE OF MEDICAL CANNABIS IN SCHOOLS.
new text end

new text begin (a) A student shall not possess or self-administer medical cannabis on the grounds of a
preschool, elementary, or secondary school; a school bus or van; or at a school-sponsored
event, except as permitted under this section.
new text end

new text begin (b) A parent or legal guardian of a minor student who is enrolled as a patient in the
registry program or a student's registered designated caregiver may possess and administer
medical cannabis to the student on the grounds of a preschool, elementary, or secondary
school in which the student is enrolled; on a school bus or van; or at a school-sponsored
event. If the student is 18 years of age or older and enrolled as a patient in the registry
program, the student may self-administer the medical cannabis under the supervision of a
designated caregiver or designated school personnel on the grounds of a secondary school
in which the student is enrolled, on a school bus or van, or at a school-sponsored event. A
parent, legal guardian, designated caregiver, or student shall not administer medical cannabis
in a manner that creates disruption to the educational environment or causes exposure to
other students. The school may designate specific locations on school grounds where medical
cannabis must be administered.
new text end

new text begin (c) After the parent, legal guardian, or designated caregiver administers the medical
cannabis, the parent, legal guardian, or designated caregiver shall remove any remaining
medical cannabis from the grounds of the preschool, elementary, or secondary school; the
school bus or van; or a school-sponsored event, unless the school allows for the storage of
the student's supply of medical cannabis in a locked secure location.
new text end

new text begin (d) Nothing in this section requires school staff or the school district's staff to administer
medical cannabis to a student or to store or maintain a student's supply of medical cannabis.
new text end

new text begin (e) The school or school district may adopt policies regarding reasonable parameters for
the administration and use of medical cannabis, but may not unreasonably limit a patient's
access to or use of medical cannabis.
new text end

new text begin (f) This section does not apply to a school district if the school district loses federal
funding as a result of implementing this section, and can reasonably demonstrate that it lost
federal funding as a result of implementing this section.
new text end

Sec. 8.

Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 27. new text end

new text begin Disallowed section 280E expenses; medical cannabis manufacturers. new text end

new text begin The
amount of expenses of a medical cannabis manufacturer, as defined in section 152.22,
subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37,
and not allowed for federal income tax purposes under section 280E of the Internal Revenue
Code is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
new text end

Sec. 9.

Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Disallowed section 280E expenses; medical cannabis manufacturers. new text end

new text begin The
amount of expenses of a medical cannabis manufacturer, as defined in section 152.22,
subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37,
and not allowed for federal income tax purposes under section 280E of the Internal Revenue
Code is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
new text end

Sec. 10. new text begin APPROPRIATION.
new text end

new text begin $1,759,000 in fiscal year 2020 and $2,259,000 in fiscal year 2021 are appropriated from
the state government special revenue fund to the commissioner of health for administration
of the medical cannabis program under Minnesota Statutes, sections 152.22 to 152.37.
new text end