Amends TCA Title 4; Title 29; Title 33; Title 38; Title 39; Title 40; Title 41; Title 43; Title 45; Title 50; Title 53; Title 57; Title 63; Title 67; Title 68 and Title 71.
MEDICAL MARIJUANA OPERATIONS<br /> <br /> This bill authorizes the following:<br /> <br /> (1) A licensed medical marijuana grower acting within the scope of the grower's license to (i) operate a facility to grow marijuana for sale or transfer to a medical marijuana establishment, (ii) possess medical marijuana or medical marijuana-related products, and (iii) conduct public tours of the facility;<br /> <br /> (2) A medical marijuana processor acting within the scope of the processor's license to (i) produce medical marijuana products for sale or transfer to a medical marijuana dispensary, (ii) possess raw marijuana or marijuana-related raw materials for the production of products, and (iii) conduct public tours of the facility;<br /> <br /> (3) A medical marijuana dispensary acting within the scope of the medical marijuana dispensary license to (i) possess medical marijuana and medical marijuana products; (ii) transfer or sell medical marijuana, medical marijuana products, and medical marijuana-related products to an adult qualifying patient or another medical marijuana establishment; and (iii) conduct public tours of the facility;<br /> <br /> (4) A medical marijuana transporter acting within the scope of the transporter's license to transport or transfer medical marijuana and medical marijuana products between medical marijuana establishments; and<br /> <br /> (5) A medical marijuana laboratory facility acting within the scope of the facility's license to (i) possess, test, and transport medical marijuana, medical marijuana products, and medical marijuana-related products; (ii) conduct research on medical marijuana and products; (iii) provide test results to businesses for compliance with any standards established by the department of agriculture ("department"); (iv) conduct public tours of the facility; and (v) perform other laboratory practices to effectuate the purposes of this bill as necessary.<br /> <br /> This bill authorizes a person who is issued a medical marijuana establishment license pursuant to this bill to operate multiple medical marijuana establishments within that specific license class, except that a person issued a medical marijuana grower license must obtain a separate license for each class described in this bill. This bill does not restrict a person who meets applicable issuance requirements from obtaining more than one class of medical marijuana establishment license and operating one or more establishments within each class of license issued.<br /> <br /> This bill requires, upon request, facilities licensed under this bill to provide necessary, scientific information and data, as determined by the department of agriculture or the department of health, to the medical cannabis commission for publishing.<br /> <br /> MEDICAL MARIJUANA USE<br /> <br /> This bill authorizes a person to engage in the personal use of medical marijuana if the person (i) is a resident of this state; (ii) is 18 or older or a minor with parental or guardian approval; and (iii) is a qualifying patient who has received a healthcare practitioner's recommendation stating that person has been diagnosed, via either an in-person consultation or a telehealth consultation, with at least one qualifying condition.<br /> <br /> As used in this bill, a "qualifying condition" means any of the following medical diagnoses made by a healthcare practitioner: (i) cancer; (ii) epilepsy; (iii) glaucoma; (iv) anxiety; (v) insomnia; (vi) a terminal illness; (vii) intractable migraines unresponsive to other treatment; (viii) a chronic medical condition that causes severe, persistent pain or persistent muscle spasms; (ix) debilitating psychiatric disorders, if diagnosed by a state-licensed psychiatrist; (x) a chronic medical condition that is normally treated with a prescription medication that could lead to physical or psychological dependence, when a physician determines that medical use of marijuana could be effective in treating that condition and would serve as a safer alternative to the prescription medication; or (xi) in the professional judgment of a healthcare practitioner, any other chronic debilitating or other medical condition.<br /> <br /> This bill authorizes a person who is authorized to engage in the personal use of medical marijuana under this bill to possess, store, or process medical marijuana on the premises of the person's private residence, so long as the medical marijuana:<br /> <br /> (1) Is stored in a child-resistant container or somewhere with restricted access to minors; and<br /> <br /> (2) Is in an amount that does not exceed one ounce of dried flower, eight grams of marijuana concentrate, or eight thousand milligrams of THC-infused product, or any combination thereof; so long as the total amount of medical marijuana does not exceed the equivalent of one ounce of dried flower.<br /> <br /> This bill authorizes a person to possess, transport, or transfer to another person, without remuneration, a medical marijuana-related product if the person is (i) an adult who is authorized under this bill for the personal use of medical marijuana; (ii) a primary caregiver for the provision and administering of medical marijuana to a qualifying patient; or (iii) a director, manager, employee, or agent of a medical marijuana establishment.<br /> <br /> This bill authorizes a parent, legal guardian, conservator, or primary caregiver to administer for medical purposes a medical marijuana product, excluding a smokable product, to a minor or other persons for whom the parent, guardian, or conservator has legal authority to provide for the care, supervision, and control.<br /> <br /> PROTECTION FROM LEGAL ACTION<br /> <br /> This bill prohibits a person from being subject to the denial of any right or privilege or to arrest, prosecution, forfeiture of property, or penalty, including any civil penalty or disciplinary action by a court or occupational or professional licensing board or other like instrumentality solely due to conduct authorized under this bill or the First Amendment of the U.S. Constitution. The fact that a person engages in conduct authorized by this bill does not in itself constitute grounds for denying, limiting, or restricting conservatorship or possession of or access to a child. Unless expressly required by federal law, a person in compliance with this bill must not be denied eligibility, based on acts authorized under this bill, for a public assistance program.<br /> <br /> This bill authorizes an employer to establish policies permitting, restricting, or prohibiting the use of medical marijuana or medical marijuana products in the workplace. This bill does not prohibit an employer from the following:<br /> <br /> (A) Disciplining an employee for using medical marijuana or a medical marijuana product in the workplace or for working while under the influence of medical marijuana or a medical marijuana product; or<br /> <br /> (B) Considering a job applicant's use of marijuana as a basis for refusing to hire the applicant for employment responsibilities described in the law regarding required drug or alcohol tests, as long as that consideration, including testing of the applicant, is consistent with and appropriate in its application to the employer's hiring policy with regard to other adulterants that cause a refusal of hiring for an applicant, including the time segment under review, so as to not disproportionately restrict the legal rights of the applicant.<br /> <br /> This bill provides that for purposes of eligibility for benefits under the Tennessee Employment Security Law, the use of medical marijuana or a medical marijuana product, when there is no other action or cause by the employee or reason for the termination, must not be deemed a discharge for misconduct under that law or otherwise a termination for cause.<br /> <br /> This bill prohibits the use of medical marijuana or medical marijuana products or status as a licensee under this bill or under the law regarding hemp, from being grounds for the denial or infringement of the right to own, purchase, or possess a firearm, ammunition, or firearm accessory under state law.<br /> <br /> PROHIBITION ON PRIVATE PROPERTY<br /> <br /> This bill authorizes a person to prohibit or restrict the possession, consumption, cultivation, distribution, processing, sale, or display of marijuana or marijuana products on property the person owns, occupies, or manages. However, this bill prohibits a person from prohibiting a residential tenant under a lease agreement from possessing medical marijuana, medical marijuana products, or marijuana-related products or consuming medical marijuana by means other than smoking on the premises.<br /> <br /> VIOLATIONS<br /> <br /> This bill does not authorize smoking or otherwise consuming medical marijuana in the following:<br /> <br /> (1) A motor vehicle that is being operated on a public roadway;<br /> <br /> (2) An aircraft, while the aircraft is in flight or in a public area; <br /> <br /> (3) A watercraft, while the watercraft is on the public waters of this state; or<br /> <br /> (4) A public place, unless (i) the public place is an area designated by a political subdivision as an area where using cannabis is permissible; and (ii) the area is not accessible to minors.<br /> <br /> This bill does not authorize possessing or consuming medical marijuana or medical marijuana products on (i) the premises of a public or private child care facility, prekindergarten, or elementary or secondary school; (ii) a school bus that serves a facility or school; or (iii) the premises of a correctional facility.<br /> <br /> This bill also does not authorize the separation of resin from the marijuana plant by butane extraction or another method that uses a substance with a flashpoint above 100 degrees Fahrenheit in a public place or motor vehicle or within the curtilage of a residential structure.<br /> <br /> This bill provides that a person commits an offense if the person, under the authority of this bill, knowingly sells, gives, or causes to be sold or given, medical marijuana or a medical marijuana product to a minor, or another person who intends to deliver the medical marijuana or medical marijuana products to a minor, except as authorized by this bill.<br /> <br /> However, this bill provides that it is a defense to prosecution under the above provision that the person to whom the marijuana or marijuana product was sold or given presented apparently valid proof of identification. For purposes of this bill, "apparently valid proof of identification" means a government-issued photo identification that contains a physical description and photograph consistent with the person's appearance and purports to establish that the person is 18 or older.<br /> <br /> This bill also provides that it is unlawful for a person to sell medical marijuana or medical marijuana products except from a medical marijuana establishment operating in compliance with all laws governing the sale of medical marijuana or medical marijuana products under this bill and in accordance with a valid license.<br /> <br /> This bill provides that a first, second, or third offense is a Class C misdemeanor. A fourth or subsequent offense is a Class A misdemeanor, and if the violator is a licensee, the violator's license must be revoked for a period of two years.<br /> <br /> DUTIES OF THE DEPARTMENT – RULE PROMULGATION<br /> <br /> This bill requires the department to implement and administer this bill. The department, except where otherwise provided, must promulgate all necessary rules for the administration and enforcement of this bill.<br /> <br /> This bill requires the department to promulgate rules for the reasonable regulation of medical marijuana establishments and medical marijuana research facilities, including rules that:<br /> <br /> (1) Establish standards for (i) the operation of medical marijuana testing facilities, (ii) the testing of medical marijuana, and (iii) the secure transportation of medical marijuana by medical marijuana transporters, including standards to ensure all medical marijuana establishments and medical marijuana research facilities are properly served;<br /> <br /> (2) Restrict the use and presence of dangerous pesticides, heavy metals, mycotoxins, solvents, microbial life, other toxins, and other foreign matter and determine acceptable levels of contaminants;<br /> <br /> (3) Regulate the packaging and labeling of medical marijuana products available at medical marijuana dispensaries, including requirements regarding child-resistant packaging and the use of a universal symbol;<br /> <br /> (4) Restrict advertising and display of medical marijuana and medical marijuana products;<br /> <br /> (5) Restrict the maximum amount or regulate the serving size of THC that may be contained in a medical marijuana product authorized to be sold;<br /> <br /> (6) Require recordkeeping and monitoring for identification of a production batch or test batch through the use of a batch number;<br /> <br /> (7) Require recordkeeping for any remediation conducted by a medical marijuana establishment;<br /> <br /> (8) Require recordkeeping and monitoring to track the transfer of medical marijuana and medical marijuana products between medical marijuana establishments or licensees;<br /> <br /> (9) Require security measures so long as the security measures do not restrict the cultivation of medical marijuana outdoors or in greenhouses; <br /> <br /> (10) Limit the proximity of medical marijuana establishments to community facilities and elementary and secondary schools so long as (i) the director of schools may sign a waiver of the proximity restriction and allow a medical marijuana establishment to be located within the limit, and (ii) the establishment of a school or community facility after a medical marijuana establishment is established at its location does not restrict or adversely affect the operation of the medical marijuana establishment and any proximity restriction that would apply pursuant to a rule promulgated in accordance with this bill must not apply to such medical marijuana establishment; and<br /> <br /> (11) Establish criteria and a process for sanctioning research projects and licensing medical marijuana research facilities, including criteria and a process by which a medical marijuana research facility may request and receive public money for research projects.<br /> <br /> As used in the bill, a "community facility" means a licensed child care center, public park, a public playground, a public swimming pool, a community center, the primary purpose of which is to provide recreational opportunities or services to children, or a place of worship.<br /> <br /> This bill requires the department of health to promulgate rules and forms necessary to facilitate the use of medical marijuana by qualifying patients under this bill, including protocols, standards, and conduct for healthcare practitioners and primary caregivers. In promulgating rules and forms, the department must consider and prioritize the process by which patients, healthcare practitioners, and primary caregivers are able to document recommendations for the medical use of medical marijuana or medical marijuana products. The department of health must publish such forms on the department's website.<br /> <br /> This bill requires the department of financial institutions to promulgate rules necessary to protect and facilitate the needs of businesses and banking institutions in order to expedite a cash and cashless system of processing proceeds from the sale of medical marijuana and medical marijuana products. <br /> <br /> This bill requires the department of veterans services to assist and protect veterans, their families, and dependents, who participate in the state program under this bill, in maintaining all benefits, both federal and state, in the presentation, proof, and establishment of all claims, privileges, rights, and other benefits that they may have under federal, state, or local law, and to cooperate with all national, state, and local government and private agencies securing services or any benefits to veterans, their families, and dependents.<br /> <br /> This bill prohibits the department of agriculture from taking adverse action or taking any action that may adversely and directly affect this state's hemp industry or hemp-related businesses, including businesses seeking to be licensed under this bill. <br /> <br /> FEES<br /> <br /> This bill requires the department by rule to set application and license fees under this bill in amounts sufficient to administer this bill, except as otherwise provided in this bill. An applicant for a license described in the above provision must have $25,000 in liquid assets available at the time of application and must provide proof of such.<br /> <br /> This bill provides that application and license fees are as follows:<br /> <br /> (1) The following medical marijuana micro-grow license fees: (i) $3,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $20,000; and (iii) an annual license renewal fee of $10,000; <br /> <br /> (2) The following medical marijuana medium-grow license fees: (i) $5,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $25,000; and (iii) an annual license renewal fee of $15,000;<br /> <br /> (3) The following medical marijuana mega-grow license fees: (i) $10,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $30,000; and (iii) an annual license renewal fee of $20,000; <br /> <br /> (4) The following medical marijuana macro-grow license fees: (i) $15,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $75,000; and (iii) an annual license renewal fee of $50,000;<br /> <br /> (5) The following medical marijuana processor license fees: (i) $15,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $50,000; and (iii) an annual license renewal fee of $25,000;<br /> <br /> (6) The following medical marijuana dispensary license fees: (i) $15,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $50,000; and (iii) an annual license renewal fee of $1,000;<br /> <br /> (7) The following medical marijuana transporter license fees: (i) $1,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $5,000; and (iii) an annual license renewal fee of $1,000; and<br /> <br /> (8) The following medical marijuana laboratory license fees: (i) $3,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $20,000; and (iii) an annual license renewal fee of $10,000.<br /> <br /> This bill prohibits any fees for a qualifying patient license from exceeding $100 in total and any fees for a primary caregiver license from exceeding $500 in total.<br /> <br /> This bill authorizes fees specified in this bil or promulgated by rule to be adjusted annually for inflation. However, any adjustment must be set by rule. <br /> <br /> CONFLICTS OF INTEREST<br /> <br /> This bill prohibits a person who is involved in the implementation, administration, or enforcement of this bill as a member or employee of the department, or a consultant to the department, from also holding a pecuniary interest in any entity licensed by the department under this bill. This bill also prohibits a person, or that person's spouse, who holds a pecuniary interest in a medical marijuana testing facility that holds a license issued under this bill from holding a pecuniary interest in any entity that holds a medical marijuana dispensary, medical marijuana producer, or medical marijuana grower license issued under this bill.<br /> <br /> ANNUAL REPORT<br /> <br /> This bill requires the department to annually submit to the governor and the chief clerks of the senate and the house of representatives a report regarding licensing and regulation under this bill that includes (i) the number of licenses issued for each class of license under this bill; (ii) demographic information pertaining to licensees; (iii) a description of any fines imposed on a licensee or disciplinary actions taken against a licensee by the department; and (iv) a statement of revenues and expenses of the department related to the implementation, administration, and enforcement of this bill.<br /> <br /> LICENSING<br /> <br /> This bill requires a person to obtain and maintain the appropriate medical marijuana establishment license issued by the department under this bill in order to lawfully operate as a medical marijuana establishment. In order to maintain a medical marijuana establishment license issued under this bill, the owner or owners of the establishment at the time the initial license is issued must maintain at least 51 percent ownership and control of the establishment, or, in the case of a publicly owned business, at least 51 percent of the stock that is owned and controlled, for the first five years after the initial issuance of the license. The department may revoke or suspend a license that does not meet the ownership and control requirements described in this bill. Additionally, a person must obtain a primary caregiver license from the department of health prior to serving as a primary caregiver under this bill. The department of health must issue licenses for qualifying patients and primary caregivers.<br /> <br /> This bill requires the department to issue medical marijuana grower licenses in classes as follows: <br /> <br /> (1) Micro-grow for a grow with a total flowering canopy of not more than 5,000 square feet. The department must not issue more than 300 micro-grow licenses;<br /> <br /> (2) Medium-grow for a grow with a total flowering canopy of more than 5,000 square feet but not more than 10,000 square feet. The department must not issue more than 100 medium-grow licenses;<br /> <br /> (3) Mega-grow for a grow with a total flowering canopy of more than 10,000 square feet but not more than 35,0000 square feet. The department must not issue more than 30 mega-grow licenses; and<br /> <br /> (4) Macro-grow for a grow with a total flowering canopy of more than 35,000 square feet, but not more than 100,000 square feet. The department must not issue more than 10 macro-grow licenses.<br /> <br /> This bill requires the department to limit the number of medical marijuana dispensary licenses issued as follows:<br /> <br /> (1) No more than five licenses in all counties, except the following counties: Sevier County, Madison County, Maury County, Bradley County, Washington County, Blount County, Wilson County, Sullivan County, Sumner County, Montgomery County, Williamson County, Rutherford County, Hamilton County, Knox County, Davidson County, and Shelby County;<br /> <br /> (2) No more than 15 licenses in each of the following counties: Sevier County, Madison County, Maury County, Bradley County, Washington County, Blount County, Wilson County, Sullivan County, Sumner County, Montgomery County, Williamson County, Rutherford County, Hamilton County, and Knox County; and<br /> <br /> (3) No more than 30 licenses in each of the following counties: Davidson County and Shelby County. <br /> <br /> PRIORITIZATION FOR LICENSES<br /> <br /> This bill requires the department by rule to provide for each class of license issued under this bill qualifications for licensure that are demonstrably related to the operations authorized and duties imposed under that class of license. Applications meeting the criteria in this bill must be given priority for licensure if they comply with all other applicable requirements of this bill.<br /> <br /> This bill requires the department to prioritize the issuance of medical marijuana establishment licenses in the following order:<br /> <br /> (1) First priority to (i) disadvantaged businesses and veteran-owned businesses that have held a hemp license in the prior year; and (ii) business entities located in a tier 4 enhancement county that have held a hemp license in the prior year;<br /> <br /> (2) Second priority to (i) any business entity that has held a hemp license in the prior year; (ii) disadvantaged businesses and veteran-owned businesses; and (iii) business entities located in a tier 4 enhancement county;<br /> <br /> (3) Third priority to business entities that are (i) owned solely by a natural person who is a resident of this state; or (ii) at least 51 percent owned and controlled by one or more residents of this state, or, in the case of any publicly owned business, have at least 51 percent of the stock owned and controlled by one or more residents of this state and management and daily business operations under the control of one or more residents of this state; and<br /> <br /> (4) Fourth priority to (i) disadvantaged business entities that are majority-owned by one or more nonresidents if located in a tier 3 or tier 4 enhancement county; (ii) veteran-owned business entities that are majority-owned by one or more nonresidents; and (iii) other business entities that are majority-owned by one or more nonresidents if located in a tier 4 enhancement county.<br /> <br /> LICENSURE APPLICATION<br /> <br /> This bill authorizes a person eligible for licensure to apply for an initial or renewal license under this bill by submitting a form prescribed by the department along with the applicable application fee set forth in this bill. The completed application must indicate the class of license sought and include (i) the name and address of the applicant; (ii) the name and address of each principal owner; (iii) the name and address of each of the applicant's directors, managers, and employees; and (iv) any other information considered necessary by the department to determine the applicant's eligibility for the license.<br /> <br /> This bill requires the department to develop weighted questions for the application regarding the applicant's prior experience that must be answered by applicants and evaluated and prioritized by the department as follows: (i) first priority to the applicant's prior experience in the hemp industry; (ii) second priority to the applicant's relevant business experience and the applicant's business history and connections in this state; and (iii) third priority to the applicant's general business experience.<br /> <br /> ISSUANCE, RENEWAL, OR DENIAL OF LICENSE<br /> <br /> This bill requires the department of agriculture to issue or renew a license for a medical marijuana establishment under this bill only if the applicant (i) meets the qualifications and pays the applicable fees for the class of license sought under this bill; (ii) is registered as a business entity with the secretary of state; and (iii) is in compliance with any applicable local regulations.<br /> <br /> This bill requires the department of health to issue or renew a license for a qualifying patient under this bill only if the applicant meets the qualifications, pays the applicable fees for the qualifying patient license, and is a resident of this state.<br /> <br /> This bill requires the department of health to issue or renew a license for a primary caregiver under this bill only if the applicant (i) meets the qualifications and pays the applicable fees for the primary caregiver license; (ii) is a resident of this state; and (iii) complies with any other requirements of the department of health.<br /> <br /> If a department denies the issuance or renewal of a license under the above provisions, then this bill requires such department to give written notice of the grounds for denial to the applicant.<br /> <br /> This bill provides that a license issued or renewed under this bill expires five years from the date of issuance or renewal. <br /> <br /> DUTY TO MAINTAIN QUALIFICATIONS<br /> <br /> This bill requires a licensee to maintain compliance at all times with the qualifications for the applicable class of license under this bill. A licensee must notify the department in writing whenever there is a material change in the operations or to the information of a licensee.<br /> <br /> LICENSE SUSPENSION OR REVOCATION<br /> <br /> This bill authorizes the department to at any time suspend or revoke a license issued under this bill for good cause, including if the department determines that the licensee has not maintained the qualifications established under this bill or has failed to comply with a duty imposed under this bill.<br /> <br /> This bill requires the department to give written notice to a licensee of a license suspension or revocation under this bill and the grounds for the suspension or revocation. The notice must be sent by certified mail, return receipt requested.<br /> <br /> This bill authorizes, after suspending or revoking a license issued under this bill, the department to seize or place under seal all medical marijuana, medical marijuana products, and medical marijuana-related products owned or possessed by the licensee. If the license is revoked, then a disposition must not be made of the seized or sealed medical marijuana, medical marijuana products, or medical marijuana-related products until the time for administrative appeal of the order has elapsed or until all appeals have been concluded. When a revocation order becomes final, all medical marijuana, medical marijuana products, and medical marijuana-related products may be forfeited to the state as contraband.<br /> <br /> CRIMINAL RECORD INFORMATION FOR APPLICANTS<br /> <br /> This bill provides that an applicant for a medical marijuana establishment license may be required to submit to the department a complete and legible set of fingerprints, on a form prescribed by the department, for the purpose of obtaining a criminal history record check from the Tennessee bureau of investigation (TBI) and the FBI. The department may deny a license to an applicant who does not comply with the requirement of this bill. Issuance of a medical marijuana establishment license by the department is conditioned on the department obtaining the applicant's criminal history record check under this bill.<br /> <br /> This bill provides that a person's conviction for a felony offense, except for a conviction for a marijuana-related offense, including the cultivation, manufacture, delivery, sale, possession, or transfer of marijuana under existing law, disqualifies an applicant for a medical marijuana establishment license under this bill. Additionally, a person's conviction for an offense that involves the delivery, sale, distribution, or casual exchange of a controlled substance to a minor, if the person was an adult and at least two years the minor's senior at the time of the offense, disqualifies an applicant for a medical marijuana establishment license under this bill.<br /> <br /> DUTIES OF LICENSEES<br /> <br /> This bill requires, before dispensing medical marijuana or a medical marijuana product to a qualifying patient, a medical marijuana dispensary to make reasonable efforts to verify that:<br /> <br /> (1) The person receiving the medical marijuana or medical marijuana product is a qualifying patient, which may be accomplished by reviewing the person's qualifying patient license;<br /> <br /> (2) The medical marijuana or medical marijuana product complies with department testing and labeling rules; and<br /> <br /> (3) The amount dispensed is not greater than the amount of medical marijuana or medical marijuana product allowed for personal use as provided in this bill.<br /> <br /> This bill prohibits a licensee from growing, processing, storing, or selling medical marijuana, medical marijuana products, or medical marijuana-related products at a location other than the physical address approved by the department for the establishment under the license issued to the establishment under this bill. A licensee must adopt reasonable security measures necessary to restrict access to areas where medical marijuana or medical marijuana products are stored and to prevent theft of medical marijuana and medical marijuana products.<br /> <br /> This bill prohibits a medical marijuana establishment licensee under this bill from employing or otherwise accepting the services of a minor.<br /> <br /> MONTHLY SALE REPORT<br /> <br /> This bill requires a medical marijuana dispensary to submit monthly a report to the department specifying the amount of medical marijuana sold, the number of medical marijuana products sold, and the amount of money collected in sales by the establishment during the preceding month.<br /> <br /> TAXES<br /> <br /> This bill provides that medical marijuana and medical marijuana products are taxable as tangible personal property and subject to sales and use taxes imposed by existing law. A county, by resolution of the county legislative body, or an incorporated municipality, by ordinance of its governing body, is authorized to levy a local sales tax in a rate not to exceed 3 percent on the sale of medical marijuana and medical marijuana products within such county or municipality, combined. Such local sales tax is to be levied, collected, and distributed in the same manner as local sales and use taxes under the 1963 Local Revenue Act.<br /> <br /> This bill also provides the following:<br /> <br /> (1) A medical marijuana tax is imposed on each sale of medical marijuana or a medical marijuana product by a medical marijuana dispensary;<br /> <br /> (2) The rate of the tax is 3 percent of the sales price of the medical marijuana or medical marijuana product;<br /> <br /> (3) The tax imposed by (1) and (2) above is administered, collected, and enforced in the same manner as the sales and use tax under title existing law is administered, collected, and enforced; and<br /> <br /> (4) The tax imposed by (1) and (2) above is in addition to any other tax imposed by law.<br /> <br /> This bill also provides the following:<br /> <br /> (A) A medical marijuana grower is entitled to a refund of 25 percent of the sales and use tax levied on supplies and materials purchased from a business located in this state and used for the cultivation of medical marijuana;<br /> <br /> (B) A medical marijuana processor is entitled to a refund of 25 percent of the sales and use tax levied on supplies and materials purchased from a business located in this state and used for the manufacture or processing of medical marijuana and production of medical marijuana products;<br /> <br /> (C) A medical marijuana dispensary is entitled to a refund of 25 percent of the sales and use tax levied on supplies and materials purchased from a business located in this state and used for the dispensing and retail sale of medical marijuana and medical marijuana products; and<br /> <br /> (D) To receive a refund authorized under (A)-(C) above, a medical marijuana establishment must submit the form prescribed by the department of revenue, in addition to any documentation the department may require.<br /> <br /> This bill provides that electronic payment and filing requirements for taxes levied under existing law are waived and a medical marijuana establishment may file a return in paper form and remit payments in cash or other form approved by the department of revenue. The commissioner of revenue is authorized to require that any such paper filing be accompanied by a manual handling fee, not to exceed $25, that is reasonably calculated by the department to account for the additional cost of preparing, printing, receiving, reviewing, and processing any paper filing.<br /> <br /> ALLOCATION OF TAX<br /> <br /> This bill requires the department of revenue to allocate the revenue derived from the medical marijuana tax imposed by this bill in the following manner:<br /> <br /> (1) 25 percent of the funds must be allocated to the department of agriculture to be used for (i) the administration and enforcement of this bill; (ii) educational and marketing programs related to the promotion and implementation of this bill, including public safety campaigns; and (iii) grant initiatives focused on economic development and green power infrastructure in tier 3 and tier 4 enhancement counties;<br /> <br /> (2) 35 percent of the funds must be allocated to the department of safety to be used for (i) training and education of law enforcement agencies and officers with regard to cannabis-related laws in this state; (ii) the support of law enforcement officers injured in the line of duty; and (iii) the support of families of law enforcement officers killed in the line of duty;<br /> <br /> (3) 20 percent of the funds must be deposited, in equal amounts, into the state employee legacy pension stabilization reserve trust and the pension stabilization reserve trust;<br /> <br /> (4) 15 percent of the funds must be allocated to the department of education to be used for educational programs for elementary and secondary students regarding age restrictions for medical marijuana use and potential health and legal risks for improper or underage use of marijuana; and<br /> <br /> (5) 5 percent of the funds must be retained by the department of revenue to be used for administrative costs incurred pursuant to this bill, including collection and enforcement costs.<br /> <br /> PROHIBITED LOCAL REGULATION<br /> <br /> This bill prohibits, except as provided below, a political subdivision of this state from enacting, adopting, or enforcing a rule, ordinance, order, resolution, or other regulation that prohibits or unreasonably restricts the cultivation, production, processing, dispensing, transportation, or possession of medical marijuana or medical marijuana products or the operation of a medical marijuana establishment as authorized by this bill. <br /> <br /> PERMISSIBLE LOCAL REGULATION<br /> <br /> This bill authorizes a political subdivision to adopt regulations consistent with this bill governing the hours of operation, location, manner of conducting business, and the number of medical marijuana establishments. However, regulations must not be more restrictive than those that apply to establishments that are licensed as retail package stores pursuant to existing law or those set forth by the department by rule. Except in accordance with this bill, regulations that effectively prohibit or substantially restrict the operation of a medical marijuana establishment within the jurisdiction are prohibited.<br /> <br /> This bill provides that a county or municipality seeking to ban the retail sale of medical marijuana or medical marijuana products by a medical marijuana dispensary within its jurisdiction is authorized to do so by a two-thirds vote of the local legislative body; so long as the initial vote occurs no later than September 30, 2024. However, a ban established pursuant to this bill expires one year from the ban's effective date. A county or municipality that bans the sale, cultivation, or production of medical marijuana or medical marijuana products within its jurisdiction is disqualified from receiving any grant funds authorized under this bill while the ban is in effect.<br /> <br /> GAS CHROMATOGRAPHY MASS SPECTRUM TEST<br /> <br /> This bill prohibits the following:<br /> <br /> (1) A person's bail, parole, probation, or suspended sentence from being revoked based solely on a positive confirmatory urine drug test conducted via a gas chromatography mass spectrum test;<br /> <br /> (2) A student from being prohibited or otherwise restricted from participation in voluntary extracurricular activities, or be required to receive referral information under existing law based solely on a positive confirmatory urine drug test conducted via a gas chromatography mass spectrum when the minor is administered a marijuana product in accordance with this bill;<br /> <br /> (3) A governmental entity acting in its capacity as a public employer from taking adverse action against an employee based solely on a positive confirmatory urine drug test conducted via a gas chromatography mass spectrum; and<br /> <br /> (4) A person from being required to receive a referral to a treatment resource or be prohibited from receiving public assistance based solely on a positive confirmatory urine drug test conducted via a gas chromatography mass spectrum test. <br /> <br /> USE OF DOGS TO DETECT DRUGS<br /> <br /> Present law authorizes the Tennessee highway patrol to utilize dogs trained to detect marijuana and other illicit substances in its work, as may be desirable and appropriate. This bill changes the present law by no longer authorizing the Tennessee highway patrol to utilize dogs trained to detect marijuana in its work, as may be desirable and appropriate.<br /> <br /> Present law also authorizes the TBI to utilize dogs trained to detect marijuana and other illicit substances in its work, as may be desirable and appropriate. This bill changes the present law by no longer authorizing the TBI to utilize dogs trained to detect marijuana in its work, as may be desirable and appropriate.<br /> <br /> DISADVANTAGED BUSINESS<br /> <br /> As used in the law relevant to the business enterprise office, a "disadvantaged business" means a business that is solely owned, or at least 51 percent of the outstanding stock of which is owned, by a person who is impeded from normal entry into the economic mainstream because of past practices of discrimination based on race, religion, ethnic background, sex or service in the armed forces during the Vietnam war; provided, that it is not the policy of this state to encourage employment outside the home of mothers of minor children. This bill changes this definition by deleting the portion of the definition providing that it is not the policy of this state to encourage employment outside the home of mothers of minor children.<br /> <br /> DRUG PARAPHERNALIA<br /> <br /> As used in the criminal law regarding offenses against public health, safety, and welfare, "drug paraphernalia" includes objects used, intended for use, or designed for use in ingesting, inhaling, or otherwise introducing marijuana, marijuana concentrates, marijuana oil, cocaine, hashish, or hashish oil into the human body. This bill deletes this provision and, instead, provides that "drug paraphernalia" includes objects used, intended for use, or designed for use in ingesting, inhaling, or otherwise introducing cocaine into the human body.<br /> <br /> DRUG OFFENSE EXCEPTIONS<br /> <br /> This bill provides that it is an exception to the law regarding drug offenses against public health, safety, and welfare if a person lawfully manufactures, delivers, sells, possesses, or consumes marijuana or medical marijuana in accordance with this bill.<br />
MEDICAL MARIJUANA OPERATIONS<br /> <br /> This bill authorizes the following:<br /> <br /> (1) A licensed medical marijuana grower acting within the scope of the grower's license to (i) operate a facility to grow marijuana for sale or transfer to a medical marijuana establishment, (ii) possess medical marijuana or medical marijuana-related products, and (iii) conduct public tours of the facility;<br /> <br /> (2) A medical marijuana processor acting within the scope of the processor's license to (i) produce medical marijuana products for sale or transfer to a medical marijuana dispensary, (ii) possess raw marijuana or marijuana-related raw materials for the production of products, and (iii) conduct public tours of the facility;<br /> <br /> (3) A medical marijuana dispensary acting within the scope of the medical marijuana dispensary license to (i) possess medical marijuana and medical marijuana products; (ii) transfer or sell medical marijuana, medical marijuana products, and medical marijuana-related products to an adult qualifying patient or another medical marijuana establishment; and (iii) conduct public tours of the facility;<br /> <br /> (4) A medical marijuana transporter acting within the scope of the transporter's license to transport or transfer medical marijuana and medical marijuana products between medical marijuana establishments; and<br /> <br /> (5) A medical marijuana laboratory facility acting within the scope of the facility's license to (i) possess, test, and transport medical marijuana, medical marijuana products, and medical marijuana-related products; (ii) conduct research on medical marijuana and products; (iii) provide test results to businesses for compliance with any standards established by the department of agriculture ("department"); (iv) conduct public tours of the facility; and (v) perform other laboratory practices to effectuate the purposes of this bill as necessary.<br /> <br /> This bill authorizes a person who is issued a medical marijuana establishment license pursuant to this bill to operate multiple medical marijuana establishments within that specific license class, except that a person issued a medical marijuana grower license must obtain a separate license for each class described in this bill. This bill does not restrict a person who meets applicable issuance requirements from obtaining more than one class of medical marijuana establishment license and operating one or more establishments within each class of license issued.<br /> <br /> This bill requires, upon request, facilities licensed under this bill to provide necessary, scientific information and data, as determined by the department of agriculture or the department of health, to the medical cannabis commission for publishing.<br /> <br /> MEDICAL MARIJUANA USE<br /> <br /> This bill authorizes a person to engage in the personal use of medical marijuana if the person (i) is a resident of this state; (ii) is 18 or older or a minor with parental or guardian approval; and (iii) is a qualifying patient who has received a healthcare practitioner's recommendation stating that person has been diagnosed, via either an in-person consultation or a telehealth consultation, with at least one qualifying condition.<br /> <br /> As used in this bill, a "qualifying condition" means any of the following medical diagnoses made by a healthcare practitioner: (i) cancer; (ii) epilepsy; (iii) glaucoma; (iv) anxiety; (v) insomnia; (vi) a terminal illness; (vii) intractable migraines unresponsive to other treatment; (viii) a chronic medical condition that causes severe, persistent pain or persistent muscle spasms; (ix) debilitating psychiatric disorders, if diagnosed by a state-licensed psychiatrist; (x) a chronic medical condition that is normally treated with a prescription medication that could lead to physical or psychological dependence, when a physician determines that medical use of marijuana could be effective in treating that condition and would serve as a safer alternative to the prescription medication; or (xi) in the professional judgment of a healthcare practitioner, any other chronic debilitating or other medical condition.<br /> <br /> This bill authorizes a person who is authorized to engage in the personal use of medical marijuana under this bill to possess, store, or process medical marijuana on the premises of the person's private residence, so long as the medical marijuana:<br /> <br /> (1) Is stored in a child-resistant container or somewhere with restricted access to minors; and<br /> <br /> (2) Is in an amount that does not exceed one ounce of dried flower, eight grams of marijuana concentrate, or eight thousand milligrams of THC-infused product, or any combination thereof; so long as the total amount of medical marijuana does not exceed the equivalent of one ounce of dried flower.<br /> <br /> This bill authorizes a person to possess, transport, or transfer to another person, without remuneration, a medical marijuana-related product if the person is (i) an adult who is authorized under this bill for the personal use of medical marijuana; (ii) a primary caregiver for the provision and administering of medical marijuana to a qualifying patient; or (iii) a director, manager, employee, or agent of a medical marijuana establishment.<br /> <br /> This bill authorizes a parent, legal guardian, conservator, or primary caregiver to administer for medical purposes a medical marijuana product, excluding a smokable product, to a minor or other persons for whom the parent, guardian, or conservator has legal authority to provide for the care, supervision, and control.<br /> <br /> PROTECTION FROM LEGAL ACTION<br /> <br /> This bill prohibits a person from being subject to the denial of any right or privilege or to arrest, prosecution, forfeiture of property, or penalty, including any civil penalty or disciplinary action by a court or occupational or professional licensing board or other like instrumentality solely due to conduct authorized under this bill or the First Amendment of the U.S. Constitution. The fact that a person engages in conduct authorized by this bill does not in itself constitute grounds for denying, limiting, or restricting conservatorship or possession of or access to a child. Unless expressly required by federal law, a person in compliance with this bill must not be denied eligibility, based on acts authorized under this bill, for a public assistance program.<br /> <br /> This bill authorizes an employer to establish policies permitting, restricting, or prohibiting the use of medical marijuana or medical marijuana products in the workplace. This bill does not prohibit an employer from the following:<br /> <br /> (A) Disciplining an employee for using medical marijuana or a medical marijuana product in the workplace or for working while under the influence of medical marijuana or a medical marijuana product; or<br /> <br /> (B) Considering a job applicant's use of marijuana as a basis for refusing to hire the applicant for employment responsibilities described in the law regarding required drug or alcohol tests, as long as that consideration, including testing of the applicant, is consistent with and appropriate in its application to the employer's hiring policy with regard to other adulterants that cause a refusal of hiring for an applicant, including the time segment under review, so as to not disproportionately restrict the legal rights of the applicant.<br /> <br /> This bill provides that for purposes of eligibility for benefits under the Tennessee Employment Security Law, the use of medical marijuana or a medical marijuana product, when there is no other action or cause by the employee or reason for the termination, must not be deemed a discharge for misconduct under that law or otherwise a termination for cause.<br /> <br /> This bill prohibits the use of medical marijuana or medical marijuana products or status as a licensee under this bill or under the law regarding hemp, from being grounds for the denial or infringement of the right to own, purchase, or possess a firearm, ammunition, or firearm accessory under state law.<br /> <br /> PROHIBITION ON PRIVATE PROPERTY<br /> <br /> This bill authorizes a person to prohibit or restrict the possession, consumption, cultivation, distribution, processing, sale, or display of marijuana or marijuana products on property the person owns, occupies, or manages. However, this bill prohibits a person from prohibiting a residential tenant under a lease agreement from possessing medical marijuana, medical marijuana products, or marijuana-related products or consuming medical marijuana by means other than smoking on the premises.<br /> <br /> VIOLATIONS<br /> <br /> This bill does not authorize smoking or otherwise consuming medical marijuana in the following:<br /> <br /> (1) A motor vehicle that is being operated on a public roadway;<br /> <br /> (2) An aircraft, while the aircraft is in flight or in a public area; <br /> <br /> (3) A watercraft, while the watercraft is on the public waters of this state; or<br /> <br /> (4) A public place, unless (i) the public place is an area designated by a political subdivision as an area where using cannabis is permissible; and (ii) the area is not accessible to minors.<br /> <br /> This bill does not authorize possessing or consuming medical marijuana or medical marijuana products on (i) the premises of a public or private child care facility, prekindergarten, or elementary or secondary school; (ii) a school bus that serves a facility or school; or (iii) the premises of a correctional facility.<br /> <br /> This bill also does not authorize the separation of resin from the marijuana plant by butane extraction or another method that uses a substance with a flashpoint above 100 degrees Fahrenheit in a public place or motor vehicle or within the curtilage of a residential structure.<br /> <br /> This bill provides that a person commits an offense if the person, under the authority of this bill, knowingly sells, gives, or causes to be sold or given, medical marijuana or a medical marijuana product to a minor, or another person who intends to deliver the medical marijuana or medical marijuana products to a minor, except as authorized by this bill.<br /> <br /> However, this bill provides that it is a defense to prosecution under the above provision that the person to whom the marijuana or marijuana product was sold or given presented apparently valid proof of identification. For purposes of this bill, "apparently valid proof of identification" means a government-issued photo identification that contains a physical description and photograph consistent with the person's appearance and purports to establish that the person is 18 or older.<br /> <br /> This bill also provides that it is unlawful for a person to sell medical marijuana or medical marijuana products except from a medical marijuana establishment operating in compliance with all laws governing the sale of medical marijuana or medical marijuana products under this bill and in accordance with a valid license.<br /> <br /> This bill provides that a first, second, or third offense is a Class C misdemeanor. A fourth or subsequent offense is a Class A misdemeanor, and if the violator is a licensee, the violator's license must be revoked for a period of two years.<br /> <br /> DUTIES OF THE DEPARTMENT – RULE PROMULGATION<br /> <br /> This bill requires the department to implement and administer this bill. The department, except where otherwise provided, must promulgate all necessary rules for the administration and enforcement of this bill.<br /> <br /> This bill requires the department to promulgate rules for the reasonable regulation of medical marijuana establishments and medical marijuana research facilities, including rules that:<br /> <br /> (1) Establish standards for (i) the operation of medical marijuana testing facilities, (ii) the testing of medical marijuana, and (iii) the secure transportation of medical marijuana by medical marijuana transporters, including standards to ensure all medical marijuana establishments and medical marijuana research facilities are properly served;<br /> <br /> (2) Restrict the use and presence of dangerous pesticides, heavy metals, mycotoxins, solvents, microbial life, other toxins, and other foreign matter and determine acceptable levels of contaminants;<br /> <br /> (3) Regulate the packaging and labeling of medical marijuana products available at medical marijuana dispensaries, including requirements regarding child-resistant packaging and the use of a universal symbol;<br /> <br /> (4) Restrict advertising and display of medical marijuana and medical marijuana products;<br /> <br /> (5) Restrict the maximum amount or regulate the serving size of THC that may be contained in a medical marijuana product authorized to be sold;<br /> <br /> (6) Require recordkeeping and monitoring for identification of a production batch or test batch through the use of a batch number;<br /> <br /> (7) Require recordkeeping for any remediation conducted by a medical marijuana establishment;<br /> <br /> (8) Require recordkeeping and monitoring to track the transfer of medical marijuana and medical marijuana products between medical marijuana establishments or licensees;<br /> <br /> (9) Require security measures so long as the security measures do not restrict the cultivation of medical marijuana outdoors or in greenhouses; <br /> <br /> (10) Limit the proximity of medical marijuana establishments to community facilities and elementary and secondary schools so long as (i) the director of schools may sign a waiver of the proximity restriction and allow a medical marijuana establishment to be located within the limit, and (ii) the establishment of a school or community facility after a medical marijuana establishment is established at its location does not restrict or adversely affect the operation of the medical marijuana establishment and any proximity restriction that would apply pursuant to a rule promulgated in accordance with this bill must not apply to such medical marijuana establishment; and<br /> <br /> (11) Establish criteria and a process for sanctioning research projects and licensing medical marijuana research facilities, including criteria and a process by which a medical marijuana research facility may request and receive public money for research projects.<br /> <br /> As used in the bill, a "community facility" means a licensed child care center, public park, a public playground, a public swimming pool, a community center, the primary purpose of which is to provide recreational opportunities or services to children, or a place of worship.<br /> <br /> This bill requires the department of health to promulgate rules and forms necessary to facilitate the use of medical marijuana by qualifying patients under this bill, including protocols, standards, and conduct for healthcare practitioners and primary caregivers. In promulgating rules and forms, the department must consider and prioritize the process by which patients, healthcare practitioners, and primary caregivers are able to document recommendations for the medical use of medical marijuana or medical marijuana products. The department of health must publish such forms on the department's website.<br /> <br /> This bill requires the department of financial institutions to promulgate rules necessary to protect and facilitate the needs of businesses and banking institutions in order to expedite a cash and cashless system of processing proceeds from the sale of medical marijuana and medical marijuana products. <br /> <br /> This bill requires the department of veterans services to assist and protect veterans, their families, and dependents, who participate in the state program under this bill, in maintaining all benefits, both federal and state, in the presentation, proof, and establishment of all claims, privileges, rights, and other benefits that they may have under federal, state, or local law, and to cooperate with all national, state, and local government and private agencies securing services or any benefits to veterans, their families, and dependents.<br /> <br /> This bill prohibits the department of agriculture from taking adverse action or taking any action that may adversely and directly affect this state's hemp industry or hemp-related businesses, including businesses seeking to be licensed under this bill. <br /> <br /> FEES<br /> <br /> This bill requires the department by rule to set application and license fees under this bill in amounts sufficient to administer this bill, except as otherwise provided in this bill. An applicant for a license described in the above provision must have $25,000 in liquid assets available at the time of application and must provide proof of such.<br /> <br /> This bill provides that application and license fees are as follows:<br /> <br /> (1) The following medical marijuana micro-grow license fees: (i) $3,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $20,000; and (iii) an annual license renewal fee of $10,000; <br /> <br /> (2) The following medical marijuana medium-grow license fees: (i) $5,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $25,000; and (iii) an annual license renewal fee of $15,000;<br /> <br /> (3) The following medical marijuana mega-grow license fees: (i) $10,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $30,000; and (iii) an annual license renewal fee of $20,000; <br /> <br /> (4) The following medical marijuana macro-grow license fees: (i) $15,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $75,000; and (iii) an annual license renewal fee of $50,000;<br /> <br /> (5) The following medical marijuana processor license fees: (i) $15,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $50,000; and (iii) an annual license renewal fee of $25,000;<br /> <br /> (6) The following medical marijuana dispensary license fees: (i) $15,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $50,000; and (iii) an annual license renewal fee of $1,000;<br /> <br /> (7) The following medical marijuana transporter license fees: (i) $1,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $5,000; and (iii) an annual license renewal fee of $1,000; and<br /> <br /> (8) The following medical marijuana laboratory license fees: (i) $3,000 for the application, of which 90 percent is refundable if the application is not accepted; (ii) an initial license fee of $20,000; and (iii) an annual license renewal fee of $10,000.<br /> <br /> This bill prohibits any fees for a qualifying patient license from exceeding $100 in total and any fees for a primary caregiver license from exceeding $500 in total.<br /> <br /> This bill authorizes fees specified in this bil or promulgated by rule to be adjusted annually for inflation. However, any adjustment must be set by rule. <br /> <br /> CONFLICTS OF INTEREST<br /> <br /> This bill prohibits a person who is involved in the implementation, administration, or enforcement of this bill as a member or employee of the department, or a consultant to the department, from also holding a pecuniary interest in any entity licensed by the department under this bill. This bill also prohibits a person, or that person's spouse, who holds a pecuniary interest in a medical marijuana testing facility that holds a license issued under this bill from holding a pecuniary interest in any entity that holds a medical marijuana dispensary, medical marijuana producer, or medical marijuana grower license issued under this bill.<br /> <br /> ANNUAL REPORT<br /> <br /> This bill requires the department to annually submit to the governor and the chief clerks of the senate and the house of representatives a report regarding licensing and regulation under this bill that includes (i) the number of licenses issued for each class of license under this bill; (ii) demographic information pertaining to licensees; (iii) a description of any fines imposed on a licensee or disciplinary actions taken against a licensee by the department; and (iv) a statement of revenues and expenses of the department related to the implementation, administration, and enforcement of this bill.<br /> <br /> LICENSING<br /> <br /> This bill requires a person to obtain and maintain the appropriate medical marijuana establishment license issued by the department under this bill in order to lawfully operate as a medical marijuana establishment. In order to maintain a medical marijuana establishment license issued under this bill, the owner or owners of the establishment at the time the initial license is issued must maintain at least 51 percent ownership and control of the establishment, or, in the case of a publicly owned business, at least 51 percent of the stock that is owned and controlled, for the first five years after the initial issuance of the license. The department may revoke or suspend a license that does not meet the ownership and control requirements described in this bill. Additionally, a person must obtain a primary caregiver license from the department of health prior to serving as a primary caregiver under this bill. The department of health must issue licenses for qualifying patients and primary caregivers.<br /> <br /> This bill requires the department to issue medical marijuana grower licenses in classes as follows: <br /> <br /> (1) Micro-grow for a grow with a total flowering canopy of not more than 5,000 square feet. The department must not issue more than 300 micro-grow licenses;<br /> <br /> (2) Medium-grow for a grow with a total flowering canopy of more than 5,000 square feet but not more than 10,000 square feet. The department must not issue more than 100 medium-grow licenses;<br /> <br /> (3) Mega-grow for a grow with a total flowering canopy of more than 10,000 square feet but not more than 35,0000 square feet. The department must not issue more than 30 mega-grow licenses; and<br /> <br /> (4) Macro-grow for a grow with a total flowering canopy of more than 35,000 square feet, but not more than 100,000 square feet. The department must not issue more than 10 macro-grow licenses.<br /> <br /> This bill requires the department to limit the number of medical marijuana dispensary licenses issued as follows:<br /> <br /> (1) No more than five licenses in all counties, except the following counties: Sevier County, Madison County, Maury County, Bradley County, Washington County, Blount County, Wilson County, Sullivan County, Sumner County, Montgomery County, Williamson County, Rutherford County, Hamilton County, Knox County, Davidson County, and Shelby County;<br /> <br /> (2) No more than 15 licenses in each of the following counties: Sevier County, Madison County, Maury County, Bradley County, Washington County, Blount County, Wilson County, Sullivan County, Sumner County, Montgomery County, Williamson County, Rutherford County, Hamilton County, and Knox County; and<br /> <br /> (3) No more than 30 licenses in each of the following counties: Davidson County and Shelby County. <br /> <br /> PRIORITIZATION FOR LICENSES<br /> <br /> This bill requires the department by rule to provide for each class of license issued under this bill qualifications for licensure that are demonstrably related to the operations authorized and duties imposed under that class of license. Applications meeting the criteria in this bill must be given priority for licensure if they comply with all other applicable requirements of this bill.<br /> <br /> This bill requires the department to prioritize the issuance of medical marijuana establishment licenses in the following order:<br /> <br /> (1) First priority to (i) disadvantaged businesses and veteran-owned businesses that have held a hemp license in the prior year; and (ii) business entities located in a tier 4 enhancement county that have held a hemp license in the prior year;<br /> <br /> (2) Second priority to (i) any business entity that has held a hemp license in the prior year; (ii) disadvantaged businesses and veteran-owned businesses; and (iii) business entities located in a tier 4 enhancement county;<br /> <br /> (3) Third priority to business entities that are (i) owned solely by a natural person who is a resident of this state; or (ii) at least 51 percent owned and controlled by one or more residents of this state, or, in the case of any publicly owned business, have at least 51 percent of the stock owned and controlled by one or more residents of this state and management and daily business operations under the control of one or more residents of this state; and<br /> <br /> (4) Fourth priority to (i) disadvantaged business entities that are majority-owned by one or more nonresidents if located in a tier 3 or tier 4 enhancement county; (ii) veteran-owned business entities that are majority-owned by one or more nonresidents; and (iii) other business entities that are majority-owned by one or more nonresidents if located in a tier 4 enhancement county.<br /> <br /> LICENSURE APPLICATION<br /> <br /> This bill authorizes a person eligible for licensure to apply for an initial or renewal license under this bill by submitting a form prescribed by the department along with the applicable application fee set forth in this bill. The completed application must indicate the class of license sought and include (i) the name and address of the applicant; (ii) the name and address of each principal owner; (iii) the name and address of each of the applicant's directors, managers, and employees; and (iv) any other information considered necessary by the department to determine the applicant's eligibility for the license.<br /> <br /> This bill requires the department to develop weighted questions for the application regarding the applicant's prior experience that must be answered by applicants and evaluated and prioritized by the department as follows: (i) first priority to the applicant's prior experience in the hemp industry; (ii) second priority to the applicant's relevant business experience and the applicant's business history and connections in this state; and (iii) third priority to the applicant's general business experience.<br /> <br /> ISSUANCE, RENEWAL, OR DENIAL OF LICENSE<br /> <br /> This bill requires the department of agriculture to issue or renew a license for a medical marijuana establishment under this bill only if the applicant (i) meets the qualifications and pays the applicable fees for the class of license sought under this bill; (ii) is registered as a business entity with the secretary of state; and (iii) is in compliance with any applicable local regulations.<br /> <br /> This bill requires the department of health to issue or renew a license for a qualifying patient under this bill only if the applicant meets the qualifications, pays the applicable fees for the qualifying patient license, and is a resident of this state.<br /> <br /> This bill requires the department of health to issue or renew a license for a primary caregiver under this bill only if the applicant (i) meets the qualifications and pays the applicable fees for the primary caregiver license; (ii) is a resident of this state; and (iii) complies with any other requirements of the department of health.<br /> <br /> If a department denies the issuance or renewal of a license under the above provisions, then this bill requires such department to give written notice of the grounds for denial to the applicant.<br /> <br /> This bill provides that a license issued or renewed under this bill expires five years from the date of issuance or renewal. <br /> <br /> DUTY TO MAINTAIN QUALIFICATIONS<br /> <br /> This bill requires a licensee to maintain compliance at all times with the qualifications for the applicable class of license under this bill. A licensee must notify the department in writing whenever there is a material change in the operations or to the information of a licensee.<br /> <br /> LICENSE SUSPENSION OR REVOCATION<br /> <br /> This bill authorizes the department to at any time suspend or revoke a license issued under this bill for good cause, including if the department determines that the licensee has not maintained the qualifications established under this bill or has failed to comply with a duty imposed under this bill.<br /> <br /> This bill requires the department to give written notice to a licensee of a license suspension or revocation under this bill and the grounds for the suspension or revocation. The notice must be sent by certified mail, return receipt requested.<br /> <br /> This bill authorizes, after suspending or revoking a license issued under this bill, the department to seize or place under seal all medical marijuana, medical marijuana products, and medical marijuana-related products owned or possessed by the licensee. If the license is revoked, then a disposition must not be made of the seized or sealed medical marijuana, medical marijuana products, or medical marijuana-related products until the time for administrative appeal of the order has elapsed or until all appeals have been concluded. When a revocation order becomes final, all medical marijuana, medical marijuana products, and medical marijuana-related products may be forfeited to the state as contraband.<br /> <br /> CRIMINAL RECORD INFORMATION FOR APPLICANTS<br /> <br /> This bill provides that an applicant for a medical marijuana establishment license may be required to submit to the department a complete and legible set of fingerprints, on a form prescribed by the department, for the purpose of obtaining a criminal history record check from the Tennessee bureau of investigation (TBI) and the FBI. The department may deny a license to an applicant who does not comply with the requirement of this bill. Issuance of a medical marijuana establishment license by the department is conditioned on the department obtaining the applicant's criminal history record check under this bill.<br /> <br /> This bill provides that a person's conviction for a felony offense, except for a conviction for a marijuana-related offense, including the cultivation, manufacture, delivery, sale, possession, or transfer of marijuana under existing law, disqualifies an applicant for a medical marijuana establishment license under this bill. Additionally, a person's conviction for an offense that involves the delivery, sale, distribution, or casual exchange of a controlled substance to a minor, if the person was an adult and at least two years the minor's senior at the time of the offense, disqualifies an applicant for a medical marijuana establishment license under this bill.<br /> <br /> DUTIES OF LICENSEES<br /> <br /> This bill requires, before dispensing medical marijuana or a medical marijuana product to a qualifying patient, a medical marijuana dispensary to make reasonable efforts to verify that:<br /> <br /> (1) The person receiving the medical marijuana or medical marijuana product is a qualifying patient, which may be accomplished by reviewing the person's qualifying patient license;<br /> <br /> (2) The medical marijuana or medical marijuana product complies with department testing and labeling rules; and<br /> <br /> (3) The amount dispensed is not greater than the amount of medical marijuana or medical marijuana product allowed for personal use as provided in this bill.<br /> <br /> This bill prohibits a licensee from growing, processing, storing, or selling medical marijuana, medical marijuana products, or medical marijuana-related products at a location other than the physical address approved by the department for the establishment under the license issued to the establishment under this bill. A licensee must adopt reasonable security measures necessary to restrict access to areas where medical marijuana or medical marijuana products are stored and to prevent theft of medical marijuana and medical marijuana products.<br /> <br /> This bill prohibits a medical marijuana establishment licensee under this bill from employing or otherwise accepting the services of a minor.<br /> <br /> MONTHLY SALE REPORT<br /> <br /> This bill requires a medical marijuana dispensary to submit monthly a report to the department specifying the amount of medical marijuana sold, the number of medical marijuana products sold, and the amount of money collected in sales by the establishment during the preceding month.<br /> <br /> TAXES<br /> <br /> This bill provides that medical marijuana and medical marijuana products are taxable as tangible personal property and subject to sales and use taxes imposed by existing law. A county, by resolution of the county legislative body, or an incorporated municipality, by ordinance of its governing body, is authorized to levy a local sales tax in a rate not to exceed 3 percent on the sale of medical marijuana and medical marijuana products within such county or municipality, combined. Such local sales tax is to be levied, collected, and distributed in the same manner as local sales and use taxes under the 1963 Local Revenue Act.<br /> <br /> This bill also provides the following:<br /> <br /> (1) A medical marijuana tax is imposed on each sale of medical marijuana or a medical marijuana product by a medical marijuana dispensary;<br /> <br /> (2) The rate of the tax is 3 percent of the sales price of the medical marijuana or medical marijuana product;<br /> <br /> (3) The tax imposed by (1) and (2) above is administered, collected, and enforced in the same manner as the sales and use tax under title existing law is administered, collected, and enforced; and<br /> <br /> (4) The tax imposed by (1) and (2) above is in addition to any other tax imposed by law.<br /> <br /> This bill also provides the following:<br /> <br /> (A) A medical marijuana grower is entitled to a refund of 25 percent of the sales and use tax levied on supplies and materials purchased from a business located in this state and used for the cultivation of medical marijuana;<br /> <br /> (B) A medical marijuana processor is entitled to a refund of 25 percent of the sales and use tax levied on supplies and materials purchased from a business located in this state and used for the manufacture or processing of medical marijuana and production of medical marijuana products;<br /> <br /> (C) A medical marijuana dispensary is entitled to a refund of 25 percent of the sales and use tax levied on supplies and materials purchased from a business located in this state and used for the dispensing and retail sale of medical marijuana and medical marijuana products; and<br /> <br /> (D) To receive a refund authorized under (A)-(C) above, a medical marijuana establishment must submit the form prescribed by the department of revenue, in addition to any documentation the department may require.<br /> <br /> This bill provides that electronic payment and filing requirements for taxes levied under existing law are waived and a medical marijuana establishment may file a return in paper form and remit payments in cash or other form approved by the department of revenue. The commissioner of revenue is authorized to require that any such paper filing be accompanied by a manual handling fee, not to exceed $25, that is reasonably calculated by the department to account for the additional cost of preparing, printing, receiving, reviewing, and processing any paper filing.<br /> <br /> ALLOCATION OF TAX<br /> <br /> This bill requires the department of revenue to allocate the revenue derived from the medical marijuana tax imposed by this bill in the following manner:<br /> <br /> (1) 25 percent of the funds must be allocated to the department of agriculture to be used for (i) the administration and enforcement of this bill; (ii) educational and marketing programs related to the promotion and implementation of this bill, including public safety campaigns; and (iii) grant initiatives focused on economic development and green power infrastructure in tier 3 and tier 4 enhancement counties;<br /> <br /> (2) 35 percent of the funds must be allocated to the department of safety to be used for (i) training and education of law enforcement agencies and officers with regard to cannabis-related laws in this state; (ii) the support of law enforcement officers injured in the line of duty; and (iii) the support of families of law enforcement officers killed in the line of duty;<br /> <br /> (3) 20 percent of the funds must be deposited, in equal amounts, into the state employee legacy pension stabilization reserve trust and the pension stabilization reserve trust;<br /> <br /> (4) 15 percent of the funds must be allocated to the department of education to be used for educational programs for elementary and secondary students regarding age restrictions for medical marijuana use and potential health and legal risks for improper or underage use of marijuana; and<br /> <br /> (5) 5 percent of the funds must be retained by the department of revenue to be used for administrative costs incurred pursuant to this bill, including collection and enforcement costs.<br /> <br /> PROHIBITED LOCAL REGULATION<br /> <br /> This bill prohibits, except as provided below, a political subdivision of this state from enacting, adopting, or enforcing a rule, ordinance, order, resolution, or other regulation that prohibits or unreasonably restricts the cultivation, production, processing, dispensing, transportation, or possession of medical marijuana or medical marijuana products or the operation of a medical marijuana establishment as authorized by this bill. <br /> <br /> PERMISSIBLE LOCAL REGULATION<br /> <br /> This bill authorizes a political subdivision to adopt regulations consistent with this bill governing the hours of operation, location, manner of conducting business, and the number of medical marijuana establishments. However, regulations must not be more restrictive than those that apply to establishments that are licensed as retail package stores pursuant to existing law or those set forth by the department by rule. Except in accordance with this bill, regulations that effectively prohibit or substantially restrict the operation of a medical marijuana establishment within the jurisdiction are prohibited.<br /> <br /> This bill provides that a county or municipality seeking to ban the retail sale of medical marijuana or medical marijuana products by a medical marijuana dispensary within its jurisdiction is authorized to do so by a two-thirds vote of the local legislative body; so long as the initial vote occurs no later than September 30, 2024. However, a ban established pursuant to this bill expires one year from the ban's effective date. A county or municipality that bans the sale, cultivation, or production of medical marijuana or medical marijuana products within its jurisdiction is disqualified from receiving any grant funds authorized under this bill while the ban is in effect.<br /> <br /> GAS CHROMATOGRAPHY MASS SPECTRUM TEST<br /> <br /> This bill prohibits the following:<br /> <br /> (1) A person's bail, parole, probation, or suspended sentence from being revoked based solely on a positive confirmatory urine drug test conducted via a gas chromatography mass spectrum test;<br /> <br /> (2) A student from being prohibited or otherwise restricted from participation in voluntary extracurricular activities, or be required to receive referral information under existing law based solely on a positive confirmatory urine drug test conducted via a gas chromatography mass spectrum when the minor is administered a marijuana product in accordance with this bill;<br /> <br /> (3) A governmental entity acting in its capacity as a public employer from taking adverse action against an employee based solely on a positive confirmatory urine drug test conducted via a gas chromatography mass spectrum; and<br /> <br /> (4) A person from being required to receive a referral to a treatment resource or be prohibited from receiving public assistance based solely on a positive confirmatory urine drug test conducted via a gas chromatography mass spectrum test. <br /> <br /> USE OF DOGS TO DETECT DRUGS<br /> <br /> Present law authorizes the Tennessee highway patrol to utilize dogs trained to detect marijuana and other illicit substances in its work, as may be desirable and appropriate. This bill changes the present law by no longer authorizing the Tennessee highway patrol to utilize dogs trained to detect marijuana in its work, as may be desirable and appropriate.<br /> <br /> Present law also authorizes the TBI to utilize dogs trained to detect marijuana and other illicit substances in its work, as may be desirable and appropriate. This bill changes the present law by no longer authorizing the TBI to utilize dogs trained to detect marijuana in its work, as may be desirable and appropriate.<br /> <br /> DISADVANTAGED BUSINESS<br /> <br /> As used in the law relevant to the business enterprise office, a "disadvantaged business" means a business that is solely owned, or at least 51 percent of the outstanding stock of which is owned, by a person who is impeded from normal entry into the economic mainstream because of past practices of discrimination based on race, religion, ethnic background, sex or service in the armed forces during the Vietnam war; provided, that it is not the policy of this state to encourage employment outside the home of mothers of minor children. This bill changes this definition by deleting the portion of the definition providing that it is not the policy of this state to encourage employment outside the home of mothers of minor children.<br /> <br /> DRUG PARAPHERNALIA<br /> <br /> As used in the criminal law regarding offenses against public health, safety, and welfare, "drug paraphernalia" includes objects used, intended for use, or designed for use in ingesting, inhaling, or otherwise introducing marijuana, marijuana concentrates, marijuana oil, cocaine, hashish, or hashish oil into the human body. This bill deletes this provision and, instead, provides that "drug paraphernalia" includes objects used, intended for use, or designed for use in ingesting, inhaling, or otherwise introducing cocaine into the human body.<br /> <br /> DRUG OFFENSE EXCEPTIONS<br /> <br /> This bill provides that it is an exception to the law regarding drug offenses against public health, safety, and welfare if a person lawfully manufactures, delivers, sells, possesses, or consumes marijuana or medical marijuana in accordance with this bill.<br />
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Lamar, London
113th General Assembly
January 29, 2024
March 27, 2024
Assigned to General Subcommittee of Senate Judiciary Committee