HF 1818

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 05/02/2014 10:29am

A bill for an act
relating to health; permitting the medical use of marijuana; setting fees;
authorizing rulemaking; providing criminal and civil penalties; appropriating
money; amending Minnesota Statutes 2012, sections 13.3806, by adding a
subdivision; 256B.0625, subdivision 13d; 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 2012, section 13.3806, is amended by adding a
subdivision to read:

Subd. 22.

Medical use of marijuana data.

Data collected by the commissioner of
health relating to registrations for the medical use of marijuana are classified in section
152.33.

Sec. 2.

[152.22] DEFINITIONS.

Subdivision 1.

Applicability.

For purposes of sections 152.22 to 152.38, the terms
defined in this section have the meanings given them.

Subd. 2.

Allowable amount of marijuana.

(a) "Allowable amount of marijuana"
means:

(1) with respect to a qualifying patient, 2.5 ounces of usable marijuana and if
the qualifying patient's registry identification card states that the qualifying patient is
authorized to cultivate marijuana:

(i) six marijuana plants contained in an enclosed, locked facility, except the plants
are not required to be in an enclosed, locked facility if the plants are being transported
because the qualifying patient is moving; and

(ii) marijuana that is produced from allowable plants that is on the premises where
the plants were grown;

(2) with respect to a designated caregiver, for each patient assisted by the designated
caregiver:

(i) 2.5 ounces of usable marijuana; and

(ii) if the designated caregiver's registry identification card provides that the
designated caregiver is authorized to cultivate marijuana:

(A) six marijuana plants contained in an enclosed, locked facility, except the plants
are not required to be in an enclosed, locked facility if the plants are being transported
because the designated caregiver is moving; and

(B) marijuana that is produced from allowable plants that is on the premises where
the plants were grown.

(b) Marijuana that is incidental to medical use, but is not usable marijuana as
defined in subdivision 16, may not be counted toward a qualifying patient's or designated
caregiver's allowable amount of marijuana.

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of health.

Subd. 4.

Cardholder.

"Cardholder" means a qualifying patient or a designated
caregiver who has been issued and possesses a valid registry identification card.

Subd. 5.

Debilitating medical condition.

"Debilitating medical condition" means:

(1) cancer, glaucoma, acquired immune deficiency syndrome, hepatitis C, Tourette's
syndrome, amyotrophic lateral sclerosis, post-traumatic stress disorder, or the treatment
of those conditions;

(2) a chronic or debilitating disease or medical condition or its treatment that
produces cachexia or wasting syndrome; severe, debilitating pain; severe nausea; seizures,
including those characteristic of epilepsy; severe and persistent muscle spasms, including
those characteristic of multiple sclerosis; and Crohn's disease;

(3) the condition of an HIV-positive patient when the patient's physician believes the
patient could benefit from consumption of marijuana; or

(4) any other medical condition or its treatment approved by the commissioner.

Subd. 6.

Designated caregiver.

"Designated caregiver" means a person who is at
least 21 years old and who has agreed to assist no more than five qualifying patients
with the medical use of marijuana.

Subd. 7.

Enclosed, locked facility.

"Enclosed, locked facility" means a closet,
room, greenhouse, building, or other enclosed area equipped with locks or other security
devices that permit access only by a cardholder.

Subd. 8.

Medical marijuana dispensary.

"Medical marijuana dispensary"
means an entity registered under section 152.25 that cultivates, acquires, manufactures,
possesses, prepares, packs, stores, delivers, transfers, transports, sells, supplies, or
dispenses marijuana, paraphernalia, or related supplies and educational materials to
registered qualifying patients or registered designated caregivers.

Subd. 9.

Medical marijuana organization.

"Medical marijuana organization"
means a medical marijuana dispensary or a safety compliance facility.

Subd. 10.

Medical use of marijuana.

"Medical use of marijuana" means
the acquisition, possession, use, administration, preparation, planting, cultivation,
propagation, harvesting, production, processing, manufacture, testing, compounding,
converting, delivery, transfer, or transportation of marijuana or drug paraphernalia, as
defined in section 152.01, subdivision 18, relating to the consumption of marijuana to
alleviate a registered qualifying patient's debilitating medical condition or symptoms
associated with the medical condition.

Subd. 11.

Practitioner.

"Practitioner" means a Minnesota licensed doctor of
medicine, a Minnesota licensed doctor of osteopathy licensed to practice medicine, a
Minnesota licensed physician assistant acting within the scope of authorized practice, or
a Minnesota licensed advance practice registered nurse, except that if the qualifying
patient's debilitating medical condition is post-traumatic stress disorder, the practitioner
must be a licensed psychiatrist.

Subd. 12.

Qualifying patient.

"Qualifying patient" means a person who has been
diagnosed by a practitioner as having a debilitating medical condition.

Subd. 13.

Registration certificate.

"Registration certificate" means a document
issued by the commissioner that identifies an entity as a medical marijuana dispensary
or a safety compliance facility.

Subd. 14.

Registry identification card.

"Registry identification card" means a
document issued by the commissioner that identifies a person as a registered qualifying
patient or registered designated caregiver.

Subd. 15.

Safety compliance facility.

"Safety compliance facility" means an entity
registered under section 152.25 to provide consumer protection services to the public
by means of laboratory sampling and testing for potency and contaminants or public
information and training services regarding:

(1) the safe and efficient cultivation, harvesting, packaging, labeling, and distribution
of marijuana;

(2) security and inventory accountability procedures; or

(3) scientific and medical research findings related to medical marijuana.

Subd. 16.

Usable marijuana.

"Usable marijuana" means the flowers of the
marijuana plant, or any mixture or preparation of them, but does not include the seeds,
stalks, leaves, and roots of the plant and does not include the weight of any nonmarijuana
ingredients combined with marijuana, including ingredients added to prepare a topical
administration, food, or drink.

Subd. 17.

Visiting qualifying patient.

"Visiting qualifying patient" means a person
who was diagnosed with a debilitating medical condition by a person who is licensed
with authority to prescribe drugs to humans in the state of the person's residence; who
possesses a registry identification card, or its equivalent, that was issued pursuant to the
laws of another state, district, territory, commonwealth, insular possession of the United
States, or country recognized by the United States; and who is not a resident of Minnesota
or has been a resident of Minnesota fewer than 30 days.

Subd. 18.

Written certification.

"Written certification" means a document
signed and dated by a licensed practitioner stating, that in the practitioner's professional
opinion, the patient is likely to receive therapeutic or palliative benefit from the medical
use of marijuana to treat or alleviate the patient's debilitating medical condition. The
practitioner must: (1) specify the qualifying patient's debilitating medical condition in
the written certification; and (2) sign and date the written certification only in the course
of a practitioner-patient relationship after the practitioner has completed a full physical
examination of the qualifying patient and a full assessment of the qualifying patient's
medical history and current medical condition.

Sec. 3.

[152.23] LIMITATIONS.

(a) Sections 152.22 to 152.38 do not permit any person to engage in and do not
prevent the imposition of any civil, criminal, or other penalties for:

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

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

(i) on a school bus;

(ii) on the grounds of any preschool or primary or secondary school; or

(iii) in any correctional facility;

(3) smoking marijuana:

(i) on any form of public transportation;

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

(iii) in any public place; 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 marijuana.

(b) Nothing in sections 152.22 to 152.38 requires the medical assistance and
MinnesotaCare programs to reimburse an enrollee or a provider for costs associated with
the medical use of marijuana.

Sec. 4.

[152.24] RULEMAKING.

The commissioner shall adopt rules that set forth the procedures and methods for
implementing sections 152.22 to 152.38, including:

(1) receiving petitions from the public to add debilitating medical conditions or
treatments to the list of debilitating medical conditions in section 152.22, subdivision 5,
and requiring public notice of a public hearing, and the opportunity to comment upon any
petition;

(2) establishing the form and content of registration and renewal applications
submitted under sections 152.22 to 152.38;

(3) establishing a system to numerically score competing medical marijuana
dispensary applicants that must include analysis of:

(i) the suitability of the proposed location and its accessibility for patients;

(ii) the character, veracity, background, and relevant experience of principal officers
and board members; and

(iii) the business plan proposed by the applicant, including its ability to maintain
an adequate supply of marijuana, plans to ensure safety and security of patrons and
the community, procedures to be used to prevent diversion, and any plan for making
marijuana available to low-income registered qualifying patients;

(4) establishing a system to consider applications for and renewals of registry
identification cards;

(5) establishing standards for medical marijuana organizations to prevent diversion
and theft without imposing an undue burden or compromising the confidentiality of
cardholders, including:

(i) receiving applications for and renewals of registration certificates;

(ii) oversight requirements;

(iii) record-keeping requirements;

(iv) security requirements, including requirements for protection of each location by
a fully operational security alarm system;

(v) safety requirements; and

(vi) requirements and procedures for the safe and accurate packaging and labeling of
medical marijuana, in compliance with the United States Poison Prevention Packing Act
regarding child resistant packaging and exemptions for packaging for elderly patients;

(6) requiring the labeling of marijuana and marijuana products sold by medical
marijuana dispensaries;

(7) establishing procedures for suspending or revoking the registration certificates or
registry identification cards of medical marijuana organizations or cardholders who violate
the provisions of sections 152.22 to 152.38 or the rules adopted under this section; and

(8) establishing reasonable restrictions relating to signage, marketing, display, and
advertising of marijuana for medical use.

Sec. 5.

[152.25] REGISTRATION AND CERTIFICATION OF MEDICAL
MARIJUANA ORGANIZATIONS.

Subdivision 1.

Registration.

Not later than 90 days after receiving an application
for a medical marijuana organization, the commissioner shall register the prospective
medical marijuana organization and issue a registration certificate and a random 20-digit
alphanumeric identification number if all of the following conditions are satisfied:

(1) the prospective medical marijuana organization has submitted all of the following:

(i) the application fee for a dispensary of $15,000; if the application is not approved,
$14,000 will be refunded;

(ii) the application fee for a safety compliance facility of $5,000; if the application
is not approved, $4,000 will be refunded;

(iii) an application, including:

(A) the legal name of the prospective medical marijuana organization;

(B) the physical address of the prospective medical marijuana organization that is
not within 1,000 feet of a public or private school existing before the date of the medical
marijuana organization's application;

(C) the name and date of birth of each principal officer and board member of the
proposed medical marijuana organization;

(D) the name and date of birth of each additional agent of the proposed medical
marijuana organization; and

(E) any additional information requested by the commissioner;

(iv) operating procedures consistent with rules for oversight of the proposed medical
marijuana organization, including procedures to ensure accurate record keeping and
adequate security measures; and

(v) if the city or county where the proposed medical marijuana organization would
be located has enacted zoning restrictions, a sworn statement certifying that the proposed
medical marijuana organization is in compliance with the restrictions;

(2) none of the principal officers or board members of the medical marijuana
organization has served as a principal officer or board member for a medical marijuana
organization that has had its registration certificate revoked;

(3) none of the principal officers or board members of the medical marijuana
organization is under 21 years of age; and

(4) if the proposed medical marijuana organization is a medical marijuana dispensary
applicant, it is located in a county with more than 20,000 permanent residents and:

(i) the county does not already contain one medical marijuana dispensary if it has a
population of 300,000 or fewer;

(ii) the county does not already contain two medical marijuana dispensaries if the
county has a population of at least 300,000 and fewer than 1,000,000; and

(iii) the county does not already contain three medical marijuana dispensaries if the
county has a population of at least 1,000,000.

Subd. 2.

Additional dispensaries.

A county with an area greater than 5,000 square
miles must have at least two medical marijuana dispensaries, regardless of population.
The commissioner may register additional medical marijuana dispensaries at its discretion.

Subd. 3.

Competing applications.

When competing applications are submitted for
a proposed medical marijuana dispensary within a single county, the commissioner shall
use an impartial and numerically scored competitive bidding process to determine which
application or applications among those competing will be approved. The commissioner
may conduct a background check of the principal officers and board members of the
prospective medical marijuana dispensary to carry out this provision.

Subd. 4.

Expiration.

All registration certificates expire one year after the date
of issue.

Subd. 5.

Renewal.

The commissioner shall issue a renewal registration certificate
within ten days of receipt of the prescribed renewal application and renewal fee from a
medical marijuana organization if its registration certificate is not under suspension and
has not been revoked.

Sec. 6.

[152.26] REGISTRY IDENTIFICATION CARDS.

Subdivision 1.

Registration of qualifying patients and designated caregivers.

A qualifying patient may apply to the commissioner for a registry identification card by
submitting all of the following:

(1) written certification issued by a licensed practitioner within the 90 days
immediately preceding the date of application;

(2) the application fee of $100, unless the patient is on Social Security disability
or Medicare and then the fee is $25; and

(3) an application, including:

(i) name, mailing address, and date of birth of the qualifying patient, except that if
the applicant is homeless, no address is required;

(ii) name, mailing address, and telephone number of the qualifying patient's
practitioner;

(iii) name, mailing address, and date of birth of the qualifying patient's designated
caregiver, if any;

(iv) a signed statement from the designated caregiver, if any, agreeing to be the
patient's designated caregiver and certifying that if the application is approved the
designated caregiver will not be a registered designated caregiver for more than five
registered qualifying patients; and

(v) a designation as to who will be allowed to cultivate marijuana plants for the
qualifying patient's medical use if a medical marijuana dispensary is not operating within
the lesser of 30 miles or 30 minutes of the qualifying patient's home.

Subd. 2.

Issuance.

(a) Except as provided in clause (2) and subdivision 4, the
commissioner shall:

(1) verify the information contained in an application or renewal submitted
according to sections 152.22 to 152.38 and approve or deny an application or renewal
within ten days of receiving a completed application or renewal; and

(2) issue a registry identification card to a qualifying patient and the patient's
designated caregiver, if any, within five days of approving the application or renewal. A
designated caregiver must have a registry identification card for each of the caregiver's
qualifying patients.

(b) The commissioner may not issue a registry identification card to a qualifying
patient who is under the age of 18 unless:

(1) the qualifying patient's practitioner has explained the potential risks and benefits
of the medical use of marijuana to the qualifying patient and to the parent, guardian, or
person having legal custody of the qualifying patient;

(2) at least two practitioners have issued a written certification within the 90 days
immediately preceding the date of application;

(3) the parent, guardian, or person having legal custody consents in writing to allow
the qualifying patient's medical use of marijuana; and

(4) a parent, guardian, or person having legal custody of the qualifying patient
consents in writing to:

(i) serve as the qualifying patient's designated caregiver; and

(ii) control the acquisition of marijuana, the dosage, and the frequency of the medical
use of marijuana by the qualifying patient.

(c) If the registry identification card of either a qualifying patient or the patient's
designated caregiver does not state that the cardholder is authorized to cultivate marijuana
plants, the commissioner must give written notice to the registered qualifying patient,
when the qualifying patient's registry identification card is issued, of the names and
addresses of all registered medical marijuana dispensaries.

Subd. 3.

Contents of registry identification cards.

Registry identification cards for
qualifying patients and designated caregivers must contain all of the following:

(1) name and date of birth of the cardholder;

(2) a statement of whether the cardholder is a qualifying patient or a designated
caregiver;

(3) the date of issuance and expiration date of the registry identification card;

(4) a random 20-digit alphanumeric identification number that is unique to the
cardholder and contains at least four numbers and at least four letters;

(5) if the cardholder is a designated caregiver, the random identification number of
the registered qualifying patient the designated caregiver is assisting;

(6) a photograph of the cardholder; and

(7) a clear indication of whether the cardholder has been designated to cultivate
marijuana plants for the qualifying patient's medical use.

Subd. 4.

Denial of registry identification cards.

(a) The commissioner may deny
an application or renewal of a qualifying patient's registry identification card only if the
applicant:

(1) does not meet the requirements of section 152.22, subdivision 12;

(2) does not provide the information required;

(3) previously had a registry identification card revoked for violating sections
152.22 to 152.38; or

(4) provides false information.

(b) The commissioner may deny an application or renewal of a designated
caregiver's registry identification card only if the applicant:

(1) does not meet the requirements of section 152.22, subdivision 6;

(2) does not provide the information required;

(3) previously had a registry identification card revoked for violating sections
152.22 to 152.38; or

(4) provides false information.

(c) The commissioner shall give written notice to the qualifying patient of the reason
for denying a registry identification card to the qualifying patient or to the qualifying
patient's designated caregiver.

(d) Denial of an application or renewal is considered a final decision of the
commissioner and is subject to judicial review.

Subd. 5.

Expiration.

All registry identifications cards expire one year after the
date of issue.

Subd. 6.

Lost registry identification cards.

If a registry identification card is
lost, the cardholder shall promptly notify the commissioner. Within five days of the
notification, and upon payment of a $25 fee, the commissioner shall issue a new registry
identification card with a new random identification number to the cardholder and, if
the cardholder is a registered qualifying patient, to the registered qualifying patient's
registered designated caregiver, if any.

Sec. 7.

[152.27] NOTIFICATIONS.

(a) A registered qualifying patient shall notify the commissioner within ten days
of any change in the registered qualifying patient's name, mailing address, designated
caregiver, preference regarding who may cultivate marijuana for the registered qualifying
patient, address where marijuana plants are cultivated, or if the registered qualifying
patient ceases to have a debilitating medical condition.

(b) A registered designated caregiver shall notify the commissioner within ten days
of any name change or change in mailing address.

(c) If a cardholder notifies the commissioner of any changes listed in this section,
but remains eligible under sections 152.22 to 152.38, the commissioner shall issue the
cardholder a new registry identification card with new random 20-digit alphanumeric
identification numbers within ten days of receiving the updated information and a $10
fee. If the person notifying the commissioner is a registered qualifying patient, the
commissioner shall also issue the patient's registered designated caregiver, if any, a new
registry identification card within ten days of receiving the updated information.

(d) If the registered qualifying patient's certifying practitioner notifies the
commissioner in writing that either the registered qualifying patient has ceased to suffer
from a debilitating medical condition or that the practitioner no longer believes the patient
would receive therapeutic or palliative benefit from the medical use of marijuana, the card
is void upon notification to the qualifying patient, and the registered qualifying patient
has 15 days to dispose of any marijuana.

(e) If a registered qualifying patient ceases to be a registered qualifying patient or
changes the registered designated caregiver, the commissioner shall promptly notify the
designated caregiver that the caregiver's duties and rights under sections 152.22 to 152.38
for the qualifying patient expire 15 days after the commissioner sends notification.

(f) A medical marijuana organization shall notify the commissioner within one
business day of any theft or significant loss of marijuana.

Sec. 8.

[152.28] MEDICAL MARIJUANA ORGANIZATION REQUIREMENTS.

(a) The operating documents of a medical marijuana organization must include
procedures for the oversight of the medical marijuana organization and procedures to
ensure accurate record keeping.

(b) A medical marijuana organization shall implement appropriate security measures
to deter and prevent the theft of marijuana and unauthorized entrance into areas containing
marijuana.

(c) All cultivation, harvesting, manufacturing, and packaging of marijuana must take
place in an enclosed, locked facility at a physical address provided to the commissioner
during the registration process.

(d) A medical marijuana dispensary may acquire usable marijuana or marijuana
plants from a registered qualifying patient or a registered designated caregiver only if the
registered qualifying patient or registered designated caregiver receives no compensation
for the marijuana.

(e) A medical marijuana organization shall not share office space with or refer
patients to a practitioner.

(f) A medical marijuana organization may not permit any person to consume
marijuana on the property of a medical marijuana organization.

(g) Medical marijuana organizations are subject to reasonable inspection by the
commissioner. The commissioner shall give reasonable notice of an inspection.

(h) A medical marijuana organization may not employ or otherwise allow any person
who is under 21 years of age to be an agent of the medical marijuana organization.

(i) Before marijuana may be dispensed to a registered qualifying patient or a
registered designated caregiver, a registered medical marijuana dispensary agent must:

(1) make a diligent effort to verify that the registry identification card presented to
the medical marijuana dispensary is valid;

(2) make a diligent effort to verify that the person presenting the card is the person
identified on the registry identification card presented to the medical marijuana dispensary
agent; and

(3) not believe that the amount dispensed would cause the cardholder to possess
more than the allowable amount of marijuana.

Sec. 9.

[152.29] MEDICAL MARIJUANA ORGANIZATION LOCATIONS.

A city may enact reasonable zoning rules that limit the use of land for medical
marijuana dispensaries or safety compliance facilities to specified areas.

Sec. 10.

[152.30] NURSING FACILITIES.

Nursing facilities licensed under chapter 144A, or boarding care homes licensed
under section 144.50, may adopt reasonable restrictions on the use of medical marijuana
by persons receiving inpatient services. The restrictions may include a provision that the
facility will not store or maintain the patient's supply of medical marijuana, that the facility
is not responsible for providing the medical marijuana for qualifying patients, that medical
marijuana be consumed by a method other than smoking, and that medical marijuana be
consumed only in a place specified by the facility. Nothing contained in this section shall
require the facilities to adopt such restrictions, and no facility shall unreasonably limit a
qualifying patient's access to or use of medical marijuana.

Sec. 11.

[152.31] VERIFICATION SYSTEM.

The commissioner shall establish a secure telephone or Web-based verification
system. The verification system must allow law enforcement personnel and registered
medical marijuana organizations to enter a registry identification number and determine
whether the number corresponds with a current, valid registry identification card. The
system may disclose only whether the identification card is valid, the name of the
cardholder, whether the cardholder is a qualifying patient or a designated caregiver,
whether the cardholder is permitted to cultivate marijuana plants, and the registry
identification number of any affiliated registered qualifying patient.

Sec. 12.

[152.32] ANNUAL REPORT.

The commissioner shall report annually to the legislature on the number of
applications for registry identification cards, the number of qualifying patients and
designated caregivers approved, the nature of the debilitating medical conditions of the
qualifying patients, the number of registry identification cards revoked, and the number of
practitioners providing written certification for qualifying patients. The commissioner
must not include identifying information on qualifying patients, designated caregivers, or
practitioners in the report.

Sec. 13.

[152.33] CONFIDENTIALITY.

(a) Data in registration applications and supporting data submitted by qualifying
patients, designated caregivers, and medical marijuana organizations, including data
on designated caregivers and practitioners, are private data on individuals or nonpublic
data as defined in section 13.02.

(b) Data kept or maintained by the commissioner may not be used for any purpose
not provided for in sections 152.22 to 152.38 and may not be combined or linked in
any manner with any other list or database.

(c) Data kept or maintained by the commissioner may be disclosed as necessary for:

(1) the verification of registration certificates and registry identification cards
pursuant to section 152.31;

(2) submission of the annual report required by section 152.32;

(3) notification to state or local law enforcement of apparent criminal violations of
sections 152.22 to 152.36;

(4) notification to state and local law enforcement about falsified or fraudulent
information submitted for purposes of obtaining or renewing a registry identification
card; and

(5) notification to the Board of Medical Practice if there is reason to believe that a
practitioner provided a written certification without completing a full assessment of the
qualifying patient's medical history and current medical condition or if the commissioner
has reason to believe the practitioner otherwise violated the standard of care for evaluating
medical conditions.

(d) Any information kept or maintained by medical marijuana organizations must
identify cardholders by their registry identification numbers and not contain names or
other personally identifying information.

(e) At the cardholder's request, the commissioner may confirm the cardholder's
status as a registered qualifying patient or a registered designated caregiver to a third party,
such as a landlord, school, medical professional, or court.

Sec. 14.

[152.34] PROTECTIONS FOR THE MEDICAL USE OF MARIJUANA.

Subdivision 1.

Presumption.

(a) There is a presumption that a qualifying patient or
designated caregiver is engaged in the authorized medical use of marijuana pursuant to
sections 152.22 to 152.38. The presumption exists if the qualifying patient or designated
caregiver:

(1) is in possession of a registry identification card; and

(2) is in possession of an amount of marijuana that does not exceed the allowable
amount of marijuana.

(b) The presumption may be rebutted by evidence that conduct related to use of
marijuana was not for the purpose of treating or alleviating the qualifying patient's
debilitating medical condition or symptoms associated with the qualifying patient's
debilitating medical condition pursuant to sections 152.22 to 152.38.

Subd. 2.

Qualifying patient and designated caregiver.

A registered qualifying
patient or registered designated caregiver who possesses a valid registry identification card
is not subject to arrest, prosecution, or penalty in any manner, including any civil penalty,
or denial of any right or privilege, or disciplinary action by a court or occupational or
professional licensing board or bureau for:

(1) the registered qualifying patient's medical use of marijuana pursuant to sections
152.22 to 152.38, if the registered qualifying patient does not possess more than the
allowable amount of marijuana;

(2) the registered designated caregiver assisting a registered qualifying patient to
whom the caregiver is connected through the commissioner's registration process with the
registered qualifying patient's medical use of marijuana pursuant to sections 152.22 to
152.34, if the registered designated caregiver does not possess more than the allowable
amount of marijuana;

(3) reimbursement by a registered qualifying patient to the patient's registered
designated caregiver for direct costs incurred by the registered designated caregiver for
assisting with the registered qualifying patient's medical use of marijuana;

(4) transferring marijuana to a safety compliance facility for testing;

(5) compensating a medical marijuana dispensary or a safety compliance facility
for goods or services provided; or

(6) offering or providing marijuana to a registered qualifying patient, to a registered
designated caregiver for a registered qualifying patient's medical use, to a visiting
qualifying patient, or to a medical marijuana dispensary if nothing of value is transferred
in return and the person giving the marijuana does not knowingly cause the recipient to
possess more than the allowable amount of marijuana.

Subd. 3.

Visiting qualifying patient.

A person who demonstrates that the person is
a visiting qualifying patient shall not be subject to arrest, prosecution, or penalty in any
manner, or denied any right or privilege including, but not limited to, civil penalty or
disciplinary action by a business or occupational or professional licensing board or entity,
for the medical use of marijuana pursuant to sections 152.22 to 152.38, if the visiting
qualifying patient does not possess more than 2.5 ounces of usable marijuana.

Subd. 4.

Dismissal of charges.

If a qualifying patient or a designated caregiver who
is not in possession of a registry identification card is arrested for possession of an amount
of marijuana that does not exceed the allowable amount or is charged with this, the patient
or caregiver shall be released from custody and the charges dismissed upon production of
a valid registry identification card issued in the person's name.

Subd. 5.

Practitioner.

A practitioner may not be subject to arrest, prosecution,
or penalty in any manner, or denied any right or privilege, including civil penalty or
disciplinary action by the Board of Medical Practice or by another business, occupational,
or professional licensing board or entity, based solely on providing written certifications
or for otherwise stating that, in the practitioner's professional opinion, a patient is likely
to receive therapeutic or palliative benefit from the medical use of marijuana to treat
or alleviate the patient's debilitating medical condition or symptoms associated with
the debilitating medical condition. Nothing in sections 152.22 to 152.38 prevents a
professional licensing board from sanctioning a practitioner for failing to properly
evaluate a patient's medical condition or otherwise violating the standard of care for
evaluating medical conditions.

Subd. 6.

Legal counsel.

An attorney may not be subject to disciplinary action
by the Minnesota State Bar Association or other professional licensing association for
providing legal assistance to prospective or registered medical marijuana dispensaries,
prospective or registered safety compliance facilities, or others related to activity that is no
longer subject to criminal penalties under state law pursuant to sections 152.22 to 152.38.

Subd. 7.

Arrest and prosecution prohibited.

No person may be subject to arrest,
prosecution, or penalty in any manner, or denied any right or privilege, including any
civil penalty or disciplinary action by a court or occupational or professional licensing
board or bureau, for:

(1) providing or selling marijuana paraphernalia to a cardholder or to a medical
marijuana organization upon presentation of a valid registry identification card or
registration certificate; or

(2) being in the presence or vicinity of the medical use of marijuana authorized
under sections 152.22 to 152.38.

Subd. 8.

Medical marijuana dispensary.

A medical marijuana dispensary or a
medical marijuana dispensary agent is not subject to prosecution, search, or inspection,
except by the commissioner pursuant to section 152.28, paragraph (g); seizure; or penalty
in any manner; and may not be denied any right or privilege, including civil penalty or
disciplinary action by a court or business licensing board or entity, for acting pursuant to
sections 152.22 to 152.38, and rules authorized by sections 152.22 to 152.38 to:

(1) possess, plant, propagate, cultivate, grow, harvest, produce, process,
manufacture, compound, convert, prepare, pack, repack, or store marijuana;

(2) deliver, transfer, or transport marijuana, marijuana paraphernalia, or related
supplies and educational materials to or from other medical marijuana organizations;

(3) compensate a safety compliance facility for services or goods provided;

(4) accept marijuana offered by a registered qualifying patient or a registered
designated caregiver if nothing of value is transferred in return;

(5) purchase or otherwise acquire marijuana from another registered medical
marijuana dispensary; or

(6) dispense, supply, or sell marijuana or related supplies and educational materials
to registered qualifying patients, to registered designated caregivers on behalf of registered
qualifying patients, or to other medical marijuana dispensaries.

Subd. 9.

Safety compliance facility.

A safety compliance facility or a safety
compliance facility agent is not subject to prosecution, search, or inspection, except by the
commissioner pursuant to section 152.28, paragraph (g); seizure; or penalty in any manner;
and may not be denied any right or privilege, including civil penalty or disciplinary action
by a court or business licensing board or entity, for acting pursuant to sections 152.22 to
152.38 and rules authorized by sections 152.22 to 152.38, to provide the following services:

(1) acquiring, possessing, or transporting marijuana obtained from registry
identification cardholders or medical marijuana organizations;

(2) returning the marijuana to the registry identification cardholder or medical
marijuana organization from whom it was obtained;

(3) producing or selling educational materials related to medical marijuana;

(4) producing, possessing, selling, or transporting marijuana paraphernalia and
equipment or materials other than marijuana to medical marijuana organizations or to
cardholders, including lab equipment and packaging materials;

(5) testing marijuana, including for potency, pesticides, mold, or contaminants;

(6) providing training to cardholders; or

(7) receiving compensation for services or goods other than marijuana provided
under sections 152.22 to 152.38.

Subd. 10.

Property rights.

Any interest in or right to property that is lawfully
possessed, owned, or used in connection with the medical use of marijuana as authorized
in sections 152.22 to 152.38, or acts incidental to such use, is not forfeited under sections
609.531 to 609.5318.

Subd. 11.

Discrimination prohibited.

(a) No school or landlord may refuse to
enroll or lease to and may not otherwise penalize a person solely for the person's status
as a cardholder, unless failing to do so would violate federal law or regulations or cause
the school or landlord to lose a monetary or licensing-related benefit under federal law
or regulations.

(b) For the purposes of medical care, including organ transplants, a registered
qualifying patient's use of marijuana according to sections 152.22 to 152.38 is considered
the equivalent of the authorized use of any other medication used at the discretion of a
physician and does not constitute the use of an illicit substance or otherwise disqualify a
qualifying patient from needed medical care.

(c) Unless a failure to do so would violate federal law or regulations or cause an
employer to lose a monetary or licensing-related benefit under federal law or regulations,
an employer may not discriminate against a person in hiring, termination, or any term or
condition of employment, or otherwise penalize a person, if the discrimination is based
upon either of the following:

(1) the person's status as a registered qualifying patient or a registered designated
caregiver; or

(2) a registered qualifying patient's positive drug test for marijuana components or
metabolites, unless the patient used, possessed, or was impaired by marijuana on the
premises of the place of employment or during the hours of employment.

(d) A person shall not be denied custody of or visitation rights or parenting time
with a minor solely for the person's status as a registered qualifying patient or a registered
designated caregiver, and there shall be no presumption of neglect or child endangerment
for conduct allowed under sections 152.22 to 152.38, unless the person's behavior is
such that it creates an unreasonable danger to the safety of the minor as established by
clear and convincing evidence.

Subd. 12.

Card as probable cause.

Possession of or application for a registry
identification card does not constitute probable cause or reasonable suspicion, nor shall it
be used to support a search of the person or property of the person possessing or applying
for the registry identification card, or otherwise subject the person or property of the
person to inspection by any governmental agency.

Sec. 15.

[152.35] AFFIRMATIVE DEFENSE.

(a) Except as provided in section 152.23, a person may assert the medical purpose
for using marijuana as a defense to any prosecution involving marijuana, and the defense
shall be presumed valid if the evidence shows that:

(1) a practitioner has stated that, in the practitioner's professional opinion, after
having completed a full assessment of the person's medical history and current medical
condition made in the course of a bona fide practitioner-patient relationship, the patient
has a debilitating medical condition and the potential benefits of using marijuana for
medical purposes would likely outweigh the health risks for the person;

(2) the person was in possession of no more than 2.5 ounces of usable marijuana, a
reasonable amount of marijuana that is not usable marijuana, and six marijuana plants; and

(3) the person was engaged in the acquisition, possession, use, manufacture,
cultivation, or transportation of marijuana, paraphernalia, or both, relating to the
administration of marijuana to treat or alleviate the individual's debilitating medical
condition or symptoms associated with the individual's debilitating medical condition.

(b) The defense and motion to dismiss shall not prevail if the prosecution proves that:

(1) the individual had a registry identification card revoked for misconduct; or

(2) the purpose of the possession of marijuana was not for palliative or therapeutic
use by the individual with a debilitating medical condition who raised the defense.

(c) An individual is not required to possess a registry identification card to raise the
affirmative defense set forth in this section.

(d) A person may assert the medical purpose for using marijuana in a motion to
dismiss, and the charges shall be dismissed following an evidentiary hearing where the
defendant shows the elements listed in paragraph (a).

(e) Any interest in or right to property that was possessed, owned, or used in
connection with a person's use of marijuana for medical purposes shall not be forfeited if
the person or the person's designated caregiver demonstrates the person's medical purpose
for using marijuana under this section.

(f) This section shall only apply if:

(1) the person's arrest, citation, or prosecution occurred after the effective date of
sections 152.22 to 152.38, but before registration for qualified patients is available; or

(2) the person's arrest or citation occurred after a valid application for a qualifying
patient had been submitted but before the registry identification card was received.

Sec. 16.

[152.36] SUSPENSION AND REVOCATION.

Subdivision 1.

Suspension or revocation of registration certificate.

The
commissioner may by motion or on complaint, after investigation and opportunity
for a public hearing at which the medical marijuana organization has been afforded an
opportunity to be heard, suspend or revoke a registration certificate for multiple negligent
violations or for a serious and knowing violation by the registrant or any of its agents of
sections 152.22 to 152.38, or any rules adopted pursuant to section 152.24.

Subd. 2.

Notice.

The commissioner shall provide notice of suspension, revocation,
fine, or other sanction, as well as the required notice of the hearing, by mailing the same
in writing to the registered organization at the address on the registration certificate. A
suspension shall not be longer than six months.

Subd. 3.

Suspensions.

A medical marijuana dispensary may continue to cultivate
and possess marijuana plants during a suspension, but it may not dispense, transfer, or
sell marijuana.

Subd. 4.

Diversion by medical marijuana dispensary.

The commissioner shall
immediately revoke the registration certificate of a medical marijuana organization that
violates section 152.37, subdivision 2, and its board members and principal officers may not
serve as board members or principal officers for any other medical marijuana organization.

Subd. 5.

Diversion by cardholder.

The commissioner shall immediately revoke the
registry identification card of any cardholder who sells marijuana to a person who is not
allowed to possess marijuana for medical purposes under sections 152.22 to 152.38, and
the cardholder is disqualified from further participation under sections 152.22 to 152.38.

Subd. 6.

Revocation of registry identification card.

The department may revoke
the registry identification card of any registered qualifying patient or registered designated
caregiver who knowingly commits a serious known violation of this chapter.

Subd. 7.

Judicial review.

Revocation is a final decision of the commissioner,
subject to judicial review.

Sec. 17.

[152.37] VIOLATIONS.

Subdivision 1.

Failure to provide required notice; civil penalty.

A registered
qualifying patient, designated caregiver, or registered organization that willfully fails to
provide a notice required by section 152.27 is guilty of a petty misdemeanor, punishable
by a fine of no more than $150.

Subd. 2.

Intentional diversion; criminal penalty.

In addition to any other
applicable penalty in law, a medical marijuana organization or an agent of a medical
marijuana organization who intentionally sells or otherwise transfers marijuana in
exchange for anything of value to a person other than a qualifying patient, a designated
caregiver, or a medical marijuana organization or its agent 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 medical marijuana organization and is disqualified from further
participation under sections 152.22 to 152.38.

Subd. 3.

Diversion by cardholder; criminal penalty.

In addition to any other
applicable penalty in law, a registered qualifying patient or registered designated caregiver
who intentionally sells or otherwise transfers marijuana in exchange for anything of value
to a person other than a qualifying patient, a designated caregiver, or a visiting qualifying
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.

Subd. 4.

Transfer of registry identification card; criminal penalty.

In addition
to any other applicable penalty in law, a qualifying patient or designated caregiver
who sells, transfers, loans, or otherwise gives another person the qualifying patient's
or designated caregiver's registry identification card is guilty of a felony and may be
sentenced to imprisonment for not more than two years, or payment of a fine of not more
than $3,000, or both.

Subd. 5.

False statement; criminal penalty.

A person who intentionally makes a
false statement to a law enforcement official about any fact or circumstance relating to
the medical use of marijuana to avoid arrest or prosecution is guilty of a misdemeanor
punishable by imprisonment for not more than 90 days or by payment of a fine of not
more than $1,000, or both. The penalty is in addition to any other penalties that may apply
for making a false statement or for the possession, cultivation, or sale of marijuana not
protected by sections 152.22 to 152.38. If a person convicted of violating this section is
a qualifying patient or a designated caregiver, the person is disqualified from further
participation under sections 152.22 to 152.38.

Subd. 6.

Submission of false records; criminal penalty.

A person who knowingly
submits false records or documentation required by the commissioner to certify a medical
marijuana organization under sections 152.22 to 152.38 is guilty of a felony and may
be sentenced to imprisonment for not more than two years, or payment of a fine of not
more than $3,000, or both.

Subd. 7.

Violation by practitioner; criminal penalty.

A practitioner who
knowingly refers patients to a medical marijuana organization or to a designated caregiver,
who advertises in a medical marijuana organization, or who issues written certifications
while holding a financial interest in a medical marijuana organization is guilty of a
misdemeanor and may be sentenced to imprisonment for not more than 90 days, or
payment of a fine of not more than $1,000, or both.

Subd. 8.

Breach of confidentiality; criminal penalty.

It is a misdemeanor for any
person, including the commissioner or another state agency or local government, to breach
the confidentiality of information obtained pursuant to sections 152.22 to 152.38.

Subd. 9.

Other violations; civil penalty.

A medical marijuana organization shall
be fined up to $1,000 for any violation of sections 152.22 to 152.38, or the regulations
issued pursuant to them, where no penalty has been specified. This penalty is in addition
to any other applicable penalties in law.

Sec. 18.

[152.38] IMPLEMENTATION.

(a) The commissioner must begin issuing registry identification cards and
registration certificates under sections 152.22 to 152.38 by October 1, 2014.

(b) If the commissioner fails to adopt rules to implement sections 152.22 to 152.38
within 120 days of July 1, 2014, any citizen may commence a mandamus action in the
district court to compel the commissioner to perform the actions mandated under sections
152.22 to 152.38.

(c) If the commissioner fails to establish the verification system required by section
152.31 within 120 days of July 1, 2014, any citizen may commence a mandamus action
in the district court to compel the commissioner to perform the actions mandated by
this chapter.

(d) If the commissioner fails to issue a registry identification card within 45 days of
submission of a valid application or renewal, the registry identification card is deemed
issued, and a copy of the registry identification card application or renewal is deemed a
valid registry identification card for one year following the date of the written certification.

(e) If at any time after the 140 days following July 1, 2014, the commissioner is not
accepting applications or has not adopted rules allowing qualifying patients to submit
applications, a notarized statement by a qualifying patient containing the information
required in an application pursuant to section 152.26, together with a written certification
issued by a practitioner within the 90 days immediately preceding the notarized statement,
are deemed a valid registry identification card.

Sec. 19.

[152.39] FEES.

(a) The fees in sections 152.22 to 152.37 are annually appropriated and deposited
in the state government special revenue fund for use by the commissioner to administer
sections 152.22 to 152.38.

(b) The total fees collected must generate revenues sufficient to implement and
administer sections 152.22 to 152.38, except fee revenue may be offset or supplemented
by private donations.

(c) The total amount of revenue from registration certificate application and renewal
fees must be sufficient to implement and administer the provisions of sections 152.22 to
152.38 relating to medical marijuana organizations, including the verification system,
except fee revenue may be offset or supplemented by private donations.

(d) The commissioner may establish a sliding scale of patient application and
renewal fees based upon a qualifying patient's household income.

(e) The commissioner may accept private donations to reduce application and
renewal fees.

Sec. 20.

Minnesota Statutes 2012, section 256B.0625, subdivision 13d, is amended to
read:

Subd. 13d.

Drug formulary.

(a) The commissioner shall establish a drug
formulary. Its establishment and publication shall not be subject to the requirements of the
Administrative Procedure Act, but the Formulary Committee shall review and comment
on the formulary contents.

(b) The formulary shall not include:

(1) drugs, active pharmaceutical ingredients, or products for which there is no
federal funding;

(2) over-the-counter drugs, except as provided in subdivision 13;

(3) drugs or active pharmaceutical ingredients used for weight loss, except that
medically necessary lipase inhibitors may be covered for a recipient with type II diabetes;

(4) drugs or active pharmaceutical ingredients when used for the treatment of
impotence or erectile dysfunction;

(5) drugs or active pharmaceutical ingredients for which medical value has not
been established; and

(6) drugs from manufacturers who have not signed a rebate agreement with the
Department of Health and Human Services pursuant to section 1927 of title XIX of the
Social Security Act; and

(7) marijuana for medical use as defined in sections 152.22 to 152.38.

(c) If a single-source drug used by at least two percent of the fee-for-service
medical assistance recipients is removed from the formulary due to the failure of the
manufacturer to sign a rebate agreement with the Department of Health and Human
Services, the commissioner shall notify prescribing practitioners within 30 days of
receiving notification from the Centers for Medicare and Medicaid Services (CMS) that a
rebate agreement was not signed.

Sec. 21.

APPROPRIATIONS.

$256,000 in fiscal year 2015 and $48,000 in fiscal year 2016 are appropriated from
the state government special revenue fund to the commissioner of health to implement
Minnesota Statutes, sections 152.22 to 152.38. This is a onetime appropriation.

Sec. 22. EFFECTIVE DATE.

Sections 1 to 21 are effective July 1, 2014.