HF 3568

as introduced - 90th Legislature (2017 - 2018) Posted on 03/21/2018 02:11pm

A bill for an act
relating to health; changing provisions for medical cannabis manufacturer
registration and patient registry program; amending Minnesota Statutes 2016,
sections 152.27, by adding a subdivision; 152.29, subdivision 1; Minnesota Statutes
2017 Supplement, sections 144.99, subdivision 1; 152.25, subdivision 1; 364.09.

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

Section 1.

Minnesota Statutes 2017 Supplement, section 144.99, subdivision 1, is amended
to read:

Subdivision 1.

Remedies available.

The provisions of chapters 103I and 157 and sections
115.71 to 115.77; 144.12, subdivision 1, paragraphs (1), (2), (5), (6), (10), (12), (13), (14),
and (15); 144.1201 to 144.1204; 144.121; 144.1215; 144.1222; 144.35; 144.381 to 144.385;
144.411 to 144.417; 144.495; 144.71 to 144.74; 144.9501 to 144.9512; 144.97 to 144.98;
144.992; new text begin 152.22 to 152.37; new text end 326.70 to 326.785; 327.10 to 327.131; and 327.14 to 327.28
and all rules, orders, stipulation agreements, settlements, compliance agreements, licenses,
registrations, certificates, and permits adopted or issued by the department or under any
other law now in force or later enacted for the preservation of public health may, in addition
to provisions in other statutes, be enforced under this section.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 152.25, subdivision 1, is amended
to read:

Subdivision 1.

Medical cannabis manufacturer registration.

(a) The commissioner
deleted text begin shall deleted text end new text begin may new text end register deleted text begin two deleted text end new text begin up to three new text end in-state manufacturers for the production of all medical
cannabis within the state. new text begin The commissioner may not register a third manufacturer until the
commissioner determines there are more than 15,000 registered patients. new text end The commissioner
shall register new manufacturers or reregister the existing manufacturers by December 1
every two years, using the factors described in this subdivision. The commissioner deleted text begin shall deleted text end new text begin
may new text end accept applications after December 1, 2014, if deleted text begin one of the manufacturers registered
before December 1, 2014, ceases to be registered as a manufacturer deleted text end new text begin fewer than the maximum
number of manufacturers are registered or if a registered manufacturer has notified the
commissioner it does not intend to renew its registration new text end . The commissioner's determination
that no manufacturer exists to fulfill the duties under sections 152.22 to 152.37 is subject
to judicial review in Ramsey County District Court. Data submitted during the application
process are private data on individuals or nonpublic data as defined in section 13.02 until
the manufacturer is registered under this section. Data on a manufacturer that is registered
are public data, unless the data are trade secret or security information under section 13.37.

(b) As a condition for registration, a manufacturer must agree to:

(1) begin supplying medical cannabis to patients by deleted text begin July 1, 2015 deleted text end new text begin within nine months of
signing an initial registration agreement with the state to act as a medical cannabis
manufacturer new text end ; and

(2) comply with all requirements under sections 152.22 to 152.37.

(c) The commissioner deleted text begin shall deleted text end new text begin may new text end consider the following factors when determining deleted text begin which
manufacturer to register deleted text end new text begin whether to register a new manufacturer, approve or deny a
re-registration application from a registered manufacturer, or revoke the registration of a
registered manufacturer new text end :

(1) the technical expertise of the manufacturer in cultivating medical cannabis and
converting the medical cannabis into an acceptable delivery method under section 152.22,
subdivision 6;

(2) the qualifications of the manufacturer's employees;

(3) the long-term financial stability of the manufacturer;

(4) the ability to provide appropriate security measures on the premises of the
manufacturer;

(5) whether the manufacturer has demonstrated an ability to meet the medical cannabis
production needs required by sections 152.22 to 152.37; deleted text begin and
deleted text end

(6) the manufacturer's projection and ongoing assessment of fees on patients with a
qualifying medical condition deleted text begin . deleted text end new text begin ; and
new text end

new text begin (7) the manufacturer's history of past violations, including number, willfulness, and
seriousness of the violations, and any economic benefit derived by the manufacturer related
to documented violations.
new text end

(d) If an officer, director, or controlling person of the manufacturer pleads or is found
guilty of intentionally diverting medical cannabis to a person other than allowed by law
under section 152.33, subdivision 1, the commissioner may decide not to renew the
registration of the manufacturer, provided the violation occurred while the person was an
officer, director, or controlling person of the manufacturer.

(e) deleted text begin The commissioner shall require deleted text end Each medical cannabis manufacturer deleted text begin to deleted text end new text begin shall new text end contract
with an independent laboratory to test medical cannabis produced by the manufacturer. The
commissioner deleted text begin shall deleted text end new text begin must new text end approve deleted text begin the deleted text end new text begin a new text end laboratory deleted text begin chosen by each manufacturer and deleted text end new text begin before
it may test medical cannabis. The commissioner shall new text end require that the laboratory report
testing results to the manufacturer new text begin and directly to the commissioner new text end in a manner determined
by the commissioner.

Sec. 3.

Minnesota Statutes 2016, section 152.27, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Caregiver limit. new text end

new text begin A patient may have no more than a total of five registered
designated caregivers and parent or legal guardians acting as caregivers at a time.
new text end

Sec. 4.

Minnesota Statutes 2016, section 152.29, subdivision 1, is amended to read:

Subdivision 1.

Manufacturer; requirements.

(a) A manufacturer shall operate four
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. 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 based on geographical need throughout the state to improve patient access. A
manufacturer shall disclose the proposed locations for the distribution facilities to the
commissioner during the registration process. A manufacturer shall operate only one location
where all cultivation, harvesting, manufacturing, packaging, and processing shall be
conducted. Any 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 an additional
distribution facility site. 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 new text begin a violation of a state or
federal controlled substance law that is a felony under Minnesota law, or would be a felony
if committed in Minnesota, regardless of the sentence imposed, unless the commissioner
determines that the person's conviction was for the medical use of cannabis or assisting with
the medical use of cannabis new text end . deleted text begin An deleted text end new text begin Each new text end employee new text begin , officer, and board member new text end 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 new text begin . The commissioner must notify the manufacturer of a successful
criminal history records check new text end before deleted text begin an deleted text end new text begin the new text end employee new text begin , officer, or board member new text end 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.

new text begin (l) A manufacturer must notify the commissioner of any assignment or transfer of an
ownership interest in the manufacturer of five percent or more. The transferee 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 any
transfer or assignment. 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 transferee's national criminal history records
information. The bureau shall return the results of the Minnesota and federal criminal history
records checks to the commissioner.
new text end

new text begin (m) A manufacturer must use an electronic seed-to-sale tracking system that will create
and maintain records relating to cannabis and medical cannabis inventory at every stage of
medical cannabis life cycle, from either seed stage or immature plant stage through
cultivation, extraction, final processing, laboratory testing, transportation, distribution, and
sale. The seed-to-sale tracking system must allow for information regarding medical cannabis
to be updated instantaneously. The commissioner must be given remote, real-time, read-only
access to this system. The costs of maintaining an electronic seed-to-sale tracking system
and the costs associated with providing remote, real-time, read-only access to this system
shall be paid by the manufacturer.
new text end

Sec. 5.

Minnesota Statutes 2017 Supplement, section 364.09, is amended to read:

364.09 EXCEPTIONS.

(a) This chapter does not apply to the licensing process for peace officers; to law
enforcement agencies as defined in section 626.84, subdivision 1, paragraph (f); to fire
protection agencies; to eligibility for a private detective or protective agent license; to the
licensing and background study process under chapters 245A and 245C; new text begin to the background
investigation process under section 152.29, subdivision 1, paragraphs (i) and (l), for medical
cannabis manufacturer employees, officers, board members, and owners; new text end to the licensing
and background investigation process under chapter 240; to eligibility for school bus driver
endorsements; to eligibility for special transportation service endorsements; to eligibility
for a commercial driver training instructor license, which is governed by section 171.35
and rules adopted under that section; to emergency medical services personnel, or to the
licensing by political subdivisions of taxicab drivers, if the applicant for the license has
been discharged from sentence for a conviction within the ten years immediately preceding
application of a violation of any of the following:

(1) sections 609.185 to 609.2114, 609.221 to 609.223, 609.342 to 609.3451, or 617.23,
subdivision 2 or 3; or Minnesota Statutes 2012, section 609.21;

(2) any provision of chapter 152 that is punishable by a maximum sentence of 15 years
or more; or

(3) a violation of chapter 169 or 169A involving driving under the influence, leaving
the scene of an accident, or reckless or careless driving.

This chapter also shall not apply to eligibility for juvenile corrections employment, where
the offense involved child physical or sexual abuse or criminal sexual conduct.

(b) This chapter does not apply to a school district or to eligibility for a license issued
or renewed by the Professional Educator Licensing and Standards Board or the commissioner
of education.

(c) Nothing in this section precludes the Minnesota Police and Peace Officers Training
Board or the state fire marshal from recommending policies set forth in this chapter to the
attorney general for adoption in the attorney general's discretion to apply to law enforcement
or fire protection agencies.

(d) This chapter does not apply to a license to practice medicine that has been denied or
revoked by the Board of Medical Practice pursuant to section 147.091, subdivision 1a.

(e) This chapter does not apply to any person who has been denied a license to practice
chiropractic or whose license to practice chiropractic has been revoked by the board in
accordance with section 148.10, subdivision 7.

(f) This chapter does not apply to any license, registration, or permit that has been denied
or revoked by the Board of Nursing in accordance with section 148.261, subdivision 1a.

(g) This chapter does not apply to any license, registration, permit, or certificate that has
been denied or revoked by the commissioner of health according to section 148.5195,
subdivision 5; or 153A.15, subdivision 2.

(h) This chapter does not supersede a requirement under law to conduct a criminal history
background investigation or consider criminal history records in hiring for particular types
of employment.