1.1A bill for an act1.2relating to health; providing for the medical use of marijuana; providing civil 1.3and criminal penalties; providing an expiration date for medical use of marijuana 1.4provisions; appropriating money;amending Minnesota Statutes 2008, section 1.513.3806, by adding a subdivision; proposing coding for new law in Minnesota 1.6Statutes, chapter 152.1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.8    Section 1. Minnesota Statutes 2008, section 13.3806, is amended by adding a 1.9subdivision to read:1.10    Subd. 21.Medical use of marijuana data.Data collected by the commissioner of 1.11health relating to registrations for the medical use of marijuana are classified in section 1.12152.25, subdivision 5.1.13    Sec. 2. [152.22] DEFINITIONS.1.14    Subdivision 1.Applicability.For purposes of sections 152.22 to 152.31, the terms 1.15defined in this section have the meanings given them.1.16    Subd. 2.Allowable amount of marijuana.(a) With respect to a qualifying patient, 1.17the "allowable amount of marijuana" means:1.18    (1) 2.5 ounces of usable marijuana; and1.19    (2) six marijuana plants contained in an enclosed, locked facility if the qualifying 1.20patient's registry identification card provides that the qualifying patient is authorized to 1.21cultivate marijuana.1.22    (b) With respect to a primary caregiver, the "allowable amount of marijuana" for 1.23each patient means:1.24    (1) 2.5 ounces of usable marijuana; and2.1    (2) six marijuana plants contained in an enclosed, locked facility if the primary 2.2caregiver's registry identification card provides that the primary caregiver is authorized to 2.3cultivate marijuana.2.4    (c) With respect to a registered organization, the "allowable amount of marijuana" 2.5for each patient means:2.6    (1) six marijuana plants; and 2.7    (2) any amount of other parts of the marijuana plant.2.8    Subd. 3.Commissioner."Commissioner" means the commissioner of health.2.9    Subd. 4.Debilitating medical condition."Debilitating medical condition" means: 2.10    (1) cancer, glaucoma, acquired immune deficiency syndrome, hepatitis C, Tourette's 2.11syndrome, or the treatment of these conditions;2.12    (2) a chronic or debilitating disease or medical condition or its treatment that 2.13produces one or more of the following: cachexia or wasting syndrome; intractable pain, 2.14as defined in section 152.125, subdivision 1; severe nausea; seizures, including, but 2.15not limited to, those characteristic of epilepsy; severe and persistent muscle spasms, 2.16including, but not limited to, those characteristic of multiple sclerosis and Crohn's disease; 2.17or agitation of Alzheimer's disease; 2.18    (3) the condition of an HIV-positive patient when the patient's condition has 2.19worsened and the patient's physician believes the patient could benefit from consumption 2.20of marijuana; or2.21    (4) any other medical condition or its treatment approved by the commissioner.2.22    Subd. 5.Department."Department" means the Minnesota Department of Health.2.23    Subd. 6.Medical use of marijuana."Medical use of marijuana" means the 2.24acquisition, possession, use, cultivation, manufacture, delivery, transfer, or transportation 2.25of marijuana or paraphernalia, as defined in section 152.01, subdivision 18, relating to the 2.26consumption of marijuana to alleviate a registered qualifying patient's debilitating medical 2.27condition or symptoms associated with the medical condition.2.28    Subd. 7.Practitioner."Practitioner" means a Minnesota licensed doctor of 2.29medicine, a Minnesota licensed doctor of osteopathy licensed to practice medicine, a 2.30Minnesota licensed physician assistant acting within the scope of authorized practice, or 2.31a Minnesota licensed advance practice registered nurse.2.32    Subd. 8.Primary caregiver."Primary caregiver" means a person who is at least 2.3321 years old and who has agreed to assist with a qualifying patient's medical use of 2.34marijuana. A primary caregiver may assist no more than five qualifying patients with 2.35their medical use of marijuana.3.1    Subd. 9.Qualifying patient."Qualifying patient" means a person who has been 3.2diagnosed by a practitioner as having a debilitating medical condition.3.3    Subd. 10.Registry identification card."Registry identification card" means a 3.4document issued by the commissioner that identifies a person as a qualifying patient or 3.5primary caregiver.3.6    Subd. 11.Usable marijuana."Usable marijuana" means the dried leaves and 3.7flowers of the marijuana plant, and any mixture or preparation of it, but does not include 3.8the seeds, stalks, and roots of the plant.3.9    Subd. 12.Written certification."Written certification" means a statement signed 3.10and dated by a practitioner, stating that in the practitioner's professional opinion the 3.11potential benefits of the medical use of marijuana would likely outweigh the health risks 3.12for the qualifying patient. A written certification must be reviewed by the practitioner 3.13annually and shall only be made in the course of a bona fide practitioner-patient 3.14relationship after the practitioner has completed a physical examination of the patient and 3.15a full assessment of the qualifying patient's medical history. The written certification 3.16shall specify the qualifying patient's debilitating medical condition or conditions and 3.17recommend the medical use of marijuana to alleviate the condition or symptoms associated 3.18with the condition.3.19    Sec. 3. [152.23] PROTECTIONS FOR MEDICAL USE OF MARIJUANA.3.20    Subdivision 1.Qualifying patient.A qualifying patient who possesses a registry 3.21identification card shall not be subject to arrest, prosecution, or penalty in any manner, or 3.22denied any right or privilege, including, but not limited to, civil penalty or disciplinary 3.23action by a business or occupational or professional licensing board or entity, for the 3.24medical use of marijuana, provided that the qualifying patient possesses an amount of 3.25marijuana that does not exceed the allowable amount.3.26    Subd. 2.Primary caregiver.A primary caregiver who possesses a registry 3.27identification card shall not be subject to arrest, prosecution, or penalty in any manner, or 3.28denied any right or privilege, including, but not limited to, civil penalty or disciplinary 3.29action by a business or occupational or professional licensing board or entity, for 3.30assisting a qualifying patient to whom the primary caregiver is connected through the 3.31commissioner's registration process with the medical use of marijuana, provided that the 3.32primary caregiver possesses an amount of marijuana that does not exceed the allowable 3.33amount of marijuana for each qualifying patient to whom the primary caregiver is 3.34connected through the registration process.4.1    Subd. 3.Dismissal of charges.If a qualifying patient or a primary caregiver who is 4.2not in possession of a registry identification card is arrested for possession of an amount of 4.3marijuana that does not exceed the allowable amount or is charged with this, the patient or 4.4caregiver shall be released from custody and the charges dismissed upon production of a 4.5valid registry identification card issued in the person's name.4.6    Subd. 4.Discrimination prohibited.(a) No school or landlord may refuse to enroll 4.7or lease to, or otherwise penalize, a person solely for the person's status as a registered 4.8qualifying patient or a registered primary caregiver, unless failing to do so would place the 4.9school or landlord in violation of federal law.4.10(b) For the purposes of medical care, including organ transplants, a registered 4.11qualifying patient's authorized use of marijuana according to sections 152.22 to 152.31 4.12is considered the equivalent of the authorized medication used at the discretion of a 4.13physician, and does not constitute the use of an illicit substance.4.14(c) Unless a failure to do so would put an employer in violation of federal law 4.15or federal regulations, an employer may not discriminate against a person in hiring, 4.16termination, or any term or condition of employment, or otherwise penalize a person, if 4.17the discrimination is based upon either of the following:4.18(1) the person's status as a registered qualifying patient or a registered primary 4.19caregiver; or4.20(2) a registered qualifying patient's positive drug test for marijuana components or 4.21metabolites, unless the patient used, possessed, or was impaired by marijuana on the 4.22premises of the place of employment or during the hours of employment.4.23(d) A person shall not be denied custody of or visitation rights or parenting time 4.24with a minor solely for the person's status as a registered qualifying patient or a registered 4.25primary caregiver, and there shall be no presumption of neglect or child endangerment 4.26for conduct allowed under sections 152.22 to 152.31, unless the person's behavior is 4.27such that it creates an unreasonable danger to the safety of the minor as established by 4.28clear and convincing evidence.4.29    Subd. 5.Presumption.(a) There is a presumption that a qualifying patient or 4.30primary caregiver is engaged in the medical use of marijuana if the qualifying patient or 4.31primary caregiver:4.32    (1) is in possession of a registry identification card; and4.33    (2) is in possession of an amount of marijuana that does not exceed the amount 4.34permitted under sections 152.22 to 152.31.5.1    (b) The presumption may be rebutted by evidence that conduct related to marijuana 5.2was not for the purpose of alleviating the qualifying patient's debilitating medical 5.3condition or symptoms associated with the medical condition.5.4    Subd. 6.Caregiver's reimbursement.A primary caregiver who is not a registered 5.5organization may receive reimbursement from a registered qualifying patient for costs 5.6associated with assisting with a registered qualifying patient's medical use of marijuana. 5.7To be reimbursable under this subdivision, a cost must have been actually incurred by the 5.8caregiver. Examples of reimbursable costs include mileage, travel expenses, price paid to 5.9obtain supplies, and the price paid to a registered organization for marijuana. A primary 5.10caregiver may not be paid any extra fee or compensation for serving as a caregiver. 5.11Reimbursement does not constitute sale of controlled substances.5.12    Subd. 7.Practitioner.A practitioner shall not be subject to arrest, prosecution, or 5.13penalty in any manner or denied any right or privilege, including, but not limited to, civil 5.14penalty or disciplinary action by the Board of Medical Practice or by another business 5.15or occupational or professional licensing board or entity, solely for providing written 5.16certifications or otherwise stating that, in the practitioner's professional opinion, the 5.17potential benefits of the medical use of marijuana would likely outweigh the health risks 5.18for a patient, provided that nothing shall prevent a practitioner from being sanctioned for 5.19failure to properly evaluate a patient's medical condition or otherwise violate the standard 5.20of care for evaluating medical conditions.5.21    Subd. 8.Property rights. Any interest in or right to property that is lawfully 5.22possessed, owned, or used in connection with the medical use of marijuana as authorized 5.23in sections 152.22 to 152.31, or acts incidental to such use, is not forfeited under sections 5.24609.531 to 609.5318.5.25    Subd. 9.Arrest and prosecution prohibited.No person is subject to arrest or 5.26prosecution for any offense related to the possession of marijuana, including constructive 5.27possession, conspiracy, aiding and abetting, or being an accessory, solely for being in the 5.28presence or vicinity of the medical use of marijuana as permitted under sections 152.22 to 5.29152.31 or, if the person is a primary caregiver acting in compliance with sections 152.22 to 5.30152.31, for assisting a registered qualifying patient with using or administering marijuana.5.31    Subd. 10.Nursing facilities.Nursing facilities licensed under chapter 144A or 5.32boarding care homes licensed under section 144.50 may adopt reasonable restrictions on 5.33the use of  medical marijuana by their residents. The restrictions may include a provision 5.34that the facility will not store or maintain the patient's supply of medical marijuana, that 5.35caregivers or the hospice agencies serving their residents are not responsible for providing 5.36the marijuana for qualifying patients, that marijuana be consumed in a method other than 6.1smoking, and that medical marijuana be consumed only in a place specified by the facility. 6.2Nothing contained herein, however, shall require the facilities to adopt such restrictions 6.3and no facility shall unreasonably limit a qualifying patient's access to or use of marijuana.6.4    Sec. 4. [152.25] REGISTRY IDENTIFICATION CARDS; ISSUANCE.6.5    Subdivision 1.Requirements; issuance.(a) The commissioner shall issue registry 6.6identification cards to qualifying patients who submit:6.7    (1) a written certification issued within the 90 days immediately preceding the 6.8date of application; 6.9    (2) the application or renewal fee of $100; 6.10    (3) the name, address, and date of birth of the qualifying patient, except that if the 6.11applicant is homeless, no address is required; 6.12    (4) the name, address, and telephone number of the qualifying patient's practitioner;6.13    (5) the name, address, and date of birth of each primary caregiver of the qualifying 6.14patient, if any, and a signed statement from the individual designated to be a primary 6.15caregiver agreeing to be designated as such. A qualifying patient may designate only one 6.16primary caregiver except that one additional caregiver may be designated if the qualifying 6.17patient is under the age of 18, or the qualifying patient designates a registered organization 6.18to cultivate marijuana for the patient's medical use and the patient requests the assistance 6.19of the second caregiver that is not a registered organization to assist with the qualifying 6.20patient's medical use. A qualifying patient may name a maximum of two primary 6.21caregivers, one of whom must be a registered organization. For the registered organization 6.22designated, the name and address of the registered organization must be submitted; and6.23(6) a designation as to who will be allowed to cultivate marijuana plants for the 6.24qualifying patient's medical use. Only one person or entity will be permitted to cultivate 6.25marijuana for a qualified patient. A qualifying patient or the qualifying patient's caregiver 6.26may only be designated to cultivate marijuana if a registered organization is not located 6.27within 30 miles of the qualifying patient's home.6.28    (b) The commissioner shall not issue a registry identification card to a qualifying 6.29patient under the age of 18 unless:6.30    (1) the qualifying patient's practitioner has explained the potential risks and benefits 6.31of the medical use of marijuana to the qualifying patient and to a parent, guardian, or 6.32person having legal custody of the qualifying patient; and 6.33    (2) a parent, guardian, or person having legal custody consents in writing to:6.34    (i) allow the qualifying patient's medical use of marijuana;6.35    (ii) serve as one of the qualifying patient's primary caregivers; and 7.1    (iii) control the acquisition of marijuana, the dosage, and the frequency of the 7.2medical use of marijuana by the qualifying patient.7.3    (c) The commissioner shall verify the information contained in an application or 7.4renewal submitted under this section and shall approve or deny an application or renewal 7.5within 15 days of receiving it. The commissioner may deny an application or renewal 7.6only if the applicant did not provide the information required under this section or if the 7.7commissioner determines that the information provided was falsified. Rejection of an 7.8application or renewal is a final agency action, subject to judicial review. Jurisdiction and 7.9venue for judicial review are vested in the district court.7.10    (d) The commissioner shall issue a registry identification card to each primary 7.11caregiver, if any, who is named in a qualifying patient's approved application, up to a 7.12maximum of two primary caregivers per qualifying patient. If a primary caregiver named 7.13by the qualifying patient is a registered organization, a registry identification card shall be 7.14provided under section 152.31, subdivision 2.7.15    (e) The commissioner shall issue a registry identification card under paragraphs (a) 7.16and (d) within five days of approving an application or renewal. The card expires one year 7.17after the date of issuance. A registry identification card shall contain:7.18    (1) a photograph of the cardholder;7.19    (2) the name, address, and date of birth of the qualifying patient; 7.20    (3) the name, address, and date of birth of each primary caregiver of the qualifying 7.21patient, if any, if the primary caregiver is not a registered organization;7.22    (4) the date of issuance and expiration date of the registry identification card;7.23    (5) a random registry identification number; and7.24(6) a clear indication of whether the cardholder has been authorized to cultivate 7.25marijuana plants for the qualifying patient's medical use.7.26    Subd. 2.Notification of changes; penalties.(a) A qualifying patient who has been 7.27issued a registry identification card shall notify the commissioner within ten days of any 7.28change in the qualifying patient's name, address, or primary caregiver, or if the qualifying 7.29patient ceases to have a debilitating medical condition.7.30    (b) Failure to notify the commissioner of a change as required under paragraph (a) is 7.31a civil violation, punishable by a fine of no more than $150. If the person has ceased to 7.32have a debilitating medical condition, the card is null and void and the person is liable for 7.33any other penalties that may apply to the person's nonmedical use of marijuana.7.34    (c) A qualifying patient must notify the commissioner of a change in the qualifying 7.35patient's designation as to who will be allowed to cultivate marijuana plants for the 7.36qualifying patient's medical use.8.1    (d) When a qualifying patient or primary caregiver notifies the commissioner of any 8.2changes under this subdivision, the commissioner shall issue the qualifying patient and 8.3each primary caregiver a new registry identification card within ten days of receiving the 8.4updated information and a $10 fee.8.5    (e) When a registered qualifying patient ceases to use the assistance of a registered 8.6primary caregiver, the commissioner shall notify the primary caregiver within ten days. 8.7The primary caregiver's protections as provided under section 152.23 expire ten days after 8.8notification by the commissioner.8.9    Subd. 3.Lost cards.If a registered qualifying patient or a registered primary 8.10caregiver loses a registry identification card, the patient or caregiver shall notify the 8.11commissioner and submit a $15 fee within ten days of losing the card. Within five days of 8.12receiving notification and the required fee, the commissioner shall issue a new registry 8.13identification card with a new random identification number.8.14    Subd. 4.Card as probable cause.Possession of, or application for, a registry 8.15identification card does not constitute probable cause or reasonable suspicion, nor shall it 8.16be used to support a search of the person or property of the person possessing or applying 8.17for the registry identification card, or otherwise subject the person or property of the 8.18person to inspection by any governmental agency.8.19    Subd. 5.Data practices.(a) Data in registration applications and supporting 8.20data submitted by qualifying patients or primary caregivers, including data on primary 8.21caregivers and practitioners, are private data on individuals or nonpublic data as defined in 8.22section 13.02.8.23    (b) The commissioner shall maintain a list of persons to whom the commissioner 8.24has issued registry identification cards. Data in the list are private data on individuals or 8.25nonpublic data except that:8.26    (1) upon request of a law enforcement agency, the commissioner shall verify whether 8.27a registry identification card is valid solely by confirming the registry identification 8.28number; and8.29    (2) the commissioner may notify law enforcement of falsified or fraudulent 8.30information submitted for purposes of obtaining or renewing a registration card.8.31    Subd. 6.Report. The commissioner shall report annually to the legislature on the 8.32number of applications for registry identification cards, the number of qualifying patients 8.33and primary caregivers approved, the nature of the debilitating medical conditions of the 8.34qualifying patients, the number of registry identification cards revoked, and the number of 8.35practitioners providing written certification for qualifying patients. The commissioner 9.1must not include identifying information on qualifying patients, primary caregivers, or 9.2practitioners in the report.9.3    Subd. 7.Submission of false records; criminal penalty.A person who knowingly 9.4submits false records or documentation required by the commissioner of health to certify 9.5an organization under sections 152.22 to 152.31 is guilty of a felony and may be sentenced 9.6to imprisonment for not more than five years or to payment of a fine of not more than 9.7$10,000, or both.9.8    Subd. 8.Criminal background check for primary caregivers.Before issuing a 9.9registry identification card to a primary caregiver under this section, the commissioner 9.10shall request a criminal history background check on the caregiver from the superintendent 9.11of the Bureau of Criminal Apprehension. The provisions of section 152.31, subdivision 9.127, apply to the background check. A person may not serve as a primary caregiver 9.13and a registry identification card may not be issued to the person if the person has 9.14been convicted of a drug felony as defined in section 152.31, subdivision 7, paragraph 9.15(a). Notwithstanding this provision, if the commissioner determines that the person's 9.16conviction was for the medical use of marijuana or assisting with the medical use of 9.17marijuana, the commissioner may issue the person a registry identification card and allow 9.18the person to serve as a primary caregiver.9.19    Sec. 5. [152.26] CONSTRUCTION.9.20    (a) Sections 152.22 to 152.31 do not permit:9.21    (1) a person to undertake a task under the influence of marijuana, when doing 9.22so would constitute negligence, professional malpractice, or failure to practice with 9.23reasonable skill and safety;9.24    (2) smoking of marijuana:9.25    (i) in a school bus or other form of public transportation;9.26    (ii) on school grounds;9.27    (iii) in a correctional facility; 9.28    (iv) in any public place; or9.29    (v) where the smoke may be inhaled by a minor child;9.30    (3) a person to operate, navigate, or be in actual physical control of any motor 9.31vehicle, aircraft, train, or motorboat, or work on transportation property, equipment, or 9.32facilities while under the influence of marijuana. However, a registered qualifying patient 9.33shall not be considered to be under the influence solely for having marijuana metabolites 9.34in the patient's system;9.35    (4) possession of marijuana on school grounds; or10.1    (5) possession of marijuana on correctional facility property.10.2    (b) Nothing in sections 152.22 to 152.31 shall be construed to require:10.3    (1) a government medical assistance program or private health insurer to reimburse a 10.4person for costs associated with the medical use of marijuana; or 10.5    (2) an employer to accommodate the medical use of marijuana in any workplace.10.6    Sec. 6. [152.27] PENALTIES.10.7    (a) Fraudulent representation to a law enforcement official of any fact or 10.8circumstance relating to the medical use of marijuana to avoid arrest or prosecution is a 10.9gross misdemeanor, which shall be in addition to any other penalties that may apply for 10.10making a false statement and for the nonmedical use of marijuana. If a person convicted 10.11of violating this section is a qualifying patient or a primary caregiver, the person is 10.12disqualified from further participation under sections 152.22 to 152.31 and the person's 10.13registry card is void.10.14    (b) In addition to any other penalty applicable in law, a qualifying patient is guilty of 10.15a felony and may be sentenced to imprisonment for not more than two years or to payment 10.16of a fine of not more than $3,000, or both, if the patient:10.17    (1) sells, transfers, loans, or otherwise gives another person the patient's registry 10.18identification card; or10.19    (2) sells, transfers, loans, or otherwise gives another person marijuana obtained 10.20under sections 152.22 to 152.31.10.21In addition, the person is disqualified from further participation under sections 152.22 to 10.22152.31 and the person's registry card is void.10.23    Sec. 7. [152.29] AFFIRMATIVE DEFENSE AND DISMISSAL FOR MEDICAL 10.24MARIJUANA.10.25    (a) Except as provided in section 152.26, a person and a person's primary caregiver, 10.26if any, may assert the medical purpose for using marijuana as a defense to any prosecution 10.27involving marijuana, and such defense shall be presumed valid where the evidence shows 10.28that:10.29    (1) a practitioner has stated that, in the practitioner's professional opinion, after 10.30having completed a full assessment of the person's medical history and current medical 10.31condition made in the course of a bona fide practitioner-patient relationship, the potential 10.32benefits of using marijuana for medical purposes would likely outweigh the health risks 10.33for the person; and 11.1    (2) the person and the person's primary caregiver, if any, were collectively in 11.2possession of a quantity of marijuana that was not more than was reasonably necessary 11.3to ensure the uninterrupted availability of marijuana for the purpose of alleviating the 11.4person's medical condition or symptoms associated with the medical condition.11.5    (b) A person may assert the medical purpose for using marijuana in a motion to 11.6dismiss, and the charges shall be dismissed following an evidentiary hearing where the 11.7defendant shows the elements listed in paragraph (a).11.8    (c) Any interest in or right to property that was possessed, owned, or used in 11.9connection with a person's use of marijuana for medical purposes shall not be forfeited if 11.10the person or the person's primary caregiver demonstrates the person's medical purpose for 11.11using marijuana under this section.11.12    Sec. 8. [152.30] SEVERABILITY.11.13    Any provision of sections 152.22 to 152.31 being held invalid as to any person or 11.14circumstances shall not affect the application of any other provision of sections 152.22 to 11.15152.31 that can be given full effect without the invalid section or application.11.16    Sec. 9. [152.31] REGISTERED ORGANIZATION.11.17    Subdivision 1.Definition.For purposes of this section, "registered organization" 11.18means a nonprofit entity registered with the commissioner under this section that acquires, 11.19possesses, cultivates, manufactures, delivers, transfers, transports, supplies, or dispenses 11.20marijuana, or related supplies and educational materials to registered qualifying patients 11.21and the qualifying patients' registered primary caregivers. A registered organization 11.22is a primary caregiver, although it may supply marijuana to any number of registered 11.23qualifying patients who have designated it as one of the qualifying patient's primary 11.24caregivers. A registered organization may not possess more than the allowable amount 11.25of marijuana.11.26    Subd. 2.Registration requirements.(a) The commissioner shall issue a registered 11.27organization license within 20 days to any person who provides:11.28    (1) a fee in an amount established by the commissioner notwithstanding section 11.2916A.1283, which shall not exceed $2,000;11.30    (2) the name of the registered organization;11.31    (3) the physical addresses of the registered organization and any other real property 11.32where marijuana is to be possessed, cultivated, manufactured, supplied, or dispensed 11.33relating to the operations of the registered organization; and12.1    (4) the name, address, and date of birth of any person who is an agent of or employed 12.2by the registered organization.12.3    (b) The commissioner shall issue each agent and employee of a registered 12.4organization a registry identification card for a cost of $15 each within ten days of receipt 12.5of the person's identifying information and the fee.  Each card shall specify that the 12.6cardholder is an employee or agent of a registered organization.12.7    Subd. 3.Expiration.A license for a registered organization and each employee or 12.8agent registry identification card expires one year after the date of issuance.12.9    Subd. 4.Inspection.Registered organizations are subject to reasonable inspection 12.10by the commissioner.12.11    Subd. 5.Organization requirements.(a) Registered organizations must be 12.12established as nonprofit entities. Registered organizations are subject to all applicable 12.13state laws governing nonprofit entities, but need not qualify for federal tax exemption 12.14under the Internal Revenue Code.12.15    (b) Registered organizations may not be located within 500 feet of the property line 12.16of a public school, private school, or structure used primarily for religious services or 12.17worship.12.18    (c) The operating documents of a registered organization shall include procedures 12.19for the oversight of the registered organization and procedures to ensure adequate record 12.20keeping.12.21    (d) A registered organization shall notify the commissioner within ten days of when 12.22an employee or agent ceases to work at the registered organization.12.23    (e) The registered organization shall notify the commissioner before a new agent or 12.24employee begins working at the registered organization, in writing, and the organization 12.25shall submit a $10 fee for the person's registry identification card.12.26    (f) No registered organization shall be subject to prosecution, search, seizure, or 12.27penalty in any manner or denied any right or privilege, including, but not limited to, civil 12.28penalty or disciplinary action by a business or occupational or professional licensing board 12.29or entity, for acting according to sections 152.22 to 152.31 to assist registered qualifying 12.30patients to whom it is connected through the commissioner's registration process with the 12.31medical use of marijuana, provided that the registered organization possesses an amount 12.32of marijuana that does not exceed the allowable amount.12.33    (g) No employees, agents, or board members of a registered organization shall 12.34be subject to arrest, prosecution, search, seizure, or penalty in any manner or denied 12.35any right or privilege, including, but not limited to, civil penalty or disciplinary action 13.1by a business, occupational, or professional licensing board or entity, for working for a 13.2registered organization according to sections 152.22 to 152.31.13.3    (h) The registered organization is prohibited from acquiring, possessing, cultivating, 13.4manufacturing, delivering, transferring, transporting, supplying, or dispensing marijuana 13.5for any purpose except to assist registered qualifying patients with the medical use of 13.6marijuana directly or through the qualifying patients' other primary caregiver.13.7    (i) The registered organization shall implement appropriate security measures to 13.8deter and prevent the unauthorized entrance into areas containing marijuana or marijuana 13.9plants and the theft of marijuana or marijuana plants. By December 1 of each year, 13.10the organization shall submit a summary of the security measures implemented to the 13.11commissioner. The commissioner shall review these measures and, if deemed advisable, 13.12require reasonable upgrades to security to better protect the marijuana or marijuana plants.13.13    (j) Registered organizations may cultivate marijuana only indoors.13.14    Subd. 6.Delivery; charging for services.(a) A registered organization may deliver 13.15up to 2.5 ounces of usable marijuana to a qualifying patient within the state to be used in 13.16accordance with sections 152.22 to 152.31.13.17    (b) A registered organization may charge a qualifying patient or a primary caregiver 13.18for authorized services rendered under sections 152.22 to 152.31. Payment under this 13.19paragraph does not constitute sale of controlled substances.13.20    Subd. 7.Background checks; felony drug convictions.(a) As used in this 13.21subdivision, "felony drug offense" means a violation of a state or federal controlled 13.22substance law that is classified as a felony under Minnesota law or would be classified 13.23as a felony under Minnesota law if committed in Minnesota, regardless of the sentence 13.24imposed.13.25    (b) The department shall request a criminal history background check from the 13.26superintendent of the Bureau of Criminal Apprehension on all employees, agents, and 13.27board members of a registered organization. An application for registry identification 13.28cards for employees, agents, and board members must be accompanied by an executed 13.29criminal history consent form, including fingerprints.13.30    (c) The superintendent of the Bureau of Criminal Apprehension shall perform 13.31the background check required under paragraph (b) by retrieving criminal history data 13.32maintained in the Criminal Justice Information System computers and shall also conduct 13.33a search of the national criminal records repository, including the criminal justice data 13.34communications network. The superintendent is authorized to exchange fingerprints with 13.35the Federal Bureau of Investigation for purposes of the criminal history check.14.1    (d) The Bureau of Criminal Apprehension and its agents may not directly or 14.2indirectly disclose to the Federal Bureau of Investigation or any other person that the 14.3purpose of the background check is related to the medical use of marijuana or registered 14.4organizations.14.5    (e) The department shall refuse to issue a registry card to any agent, employee, or 14.6board member of a registered organization who has been convicted of a drug felony. The 14.7department, without disclosing the actual results of the national records check, shall notify 14.8the registered organization in writing of the purpose for denying the registry identification 14.9card. However, the department may grant the person a registry identification card if the 14.10person's conviction was for the medical use of marijuana or assisting with the medical use 14.11of marijuana.14.12    (f) If a registered organization has employed an agent, board member, or employee 14.13and is notified that the person failed the background check, it shall terminate the person's 14.14status as an agent, board member, or employee within 24 hours of receiving written 14.15notification. The result of the criminal background check is private information, and the 14.16registered organization may not disclose it, except to defend itself of any charges related 14.17to employment law.14.18    (g) No person who has been convicted of a drug felony offense may be the agent, 14.19board member, or employee of a registered organization. Notwithstanding this provision, 14.20a person may apply to the department for a waiver if the person's conviction was for the 14.21medical use of marijuana or assisting with the medical use of marijuana. A person who is 14.22employed by, an agent of, or a board member of a registered organization in violation of 14.23this section is guilty of a civil violation punishable by a fine of up to $1,000. A subsequent 14.24violation of this section is a gross misdemeanor.14.25    (h) No registered organization may knowingly and willfully allow a person who has 14.26been convicted of a drug felony to be its agent, board member, or employee unless the 14.27department has granted the person a registry identification card because the person's 14.28conviction was for the medical use of marijuana. A violation is punishable by a fine of 14.29up to $2,000.14.30    Subd. 8.Penalty.(a) The registered organization may not possess an amount of 14.31marijuana that exceeds the allowable amount of marijuana. The registered organization 14.32may not dispense, deliver, or otherwise transfer marijuana to a person other than a 14.33qualifying patient or the patient's primary caregiver. An intentional violation of this 14.34subdivision is a felony punishable by imprisonment for not more than two years or by 14.35payment of a fine of not more than $3,000, or both. This penalty is in addition to any 14.36other penalties applicable in law.15.1    (b) A person convicted of violating paragraph (a) may not continue to be affiliated 15.2with the registered organization and is disqualified from further participation under 15.3sections 152.22 to 152.31.15.4    Sec. 10. [152.32] SUNSET.15.5Sections 152.22 to 152.32 and 13.3806, subdivision 21, expire October 1, 2011.15.6    Sec. 11. IMPLEMENTATION.15.7The commissioner of health must begin issuing registry identification cards and 15.8registered organization licenses under Minnesota Statutes, sections 152.22 to 152.32, 15.9by October 1, 2009.15.10    Sec. 12. FEES.15.11Fees raised in Minnesota Statutes, sections 152.22 to 152.31, are appropriated and 15.12deposited in the state government special revenue fund.15.13    Sec. 13. APPROPRIATIONS.15.14    $436,000 for fiscal year 2010 and $517,000 for fiscal year 2011 are appropriated 15.15from the state government special revenue fund to the commissioner of health to 15.16implement Minnesota Statutes, sections 152.22 to 152.31.15.17    Sec. 14. EFFECTIVE DATE.15.18    Sections 1 to 9 are effective August 1, 2009.