Bill Text: MS HB1444 | 2017 | Regular Session | Introduced
Bill Title: Mississippi Retail Marijuana Code; create for the licensing and regulation of retail marijuana establishments.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2017-01-31 - Died In Committee [HB1444 Detail]
Download: Mississippi-2017-HB1444-Introduced.html
MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Drug Policy; Judiciary A
By: Representative Scott
House Bill 1444
AN ACT TO CREATE THE MISSISSIPPI RETAIL MARIJUANA CODE; TO MAKE CERTAIN DECLARATIONS REGARDING THE POWERS OF THE STATE AND RETAIL MARIJUANA AND RETAIL MARIJUANA PRODUCTS; TO DEFINE CERTAIN TERMS; TO PROVIDE THAT THE COMMISSIONER OF REVENUE OR HIS DESIGNEE SHALL SERVE AS THE STATE LICENSING AUTHORITY FOR THE LICENSING AND REGULATION OF RETAIL MARIJUANA ESTABLISHMENTS; TO ESTABLISH THE MARIJUANA CASH FUND AS A SPECIAL FUND IN THE STATE TREASURY, INTO WHICH LICENSE FEES COLLECTED UNDER THE MISSISSIPPI RETAIL MARIJUANA CODE SHALL BE DEPOSITED; TO AUTHORIZE PERSONS TO APPLY FOR A LICENSE TO OPERATE A RETAIL MARIJUANA ESTABLISHMENT BEGINNING ON JANUARY 1, 2018; TO DESIGNATE CERTAIN AREAS OF LICENSES PREMISES AS LIMITED ACCESS AREAS; TO PRESCRIBE THE POWERS AND DUTIES OF THE STATE LICENSING AUTHORITY; TO AUTHORIZE COUNTIES AND MUNICIPALITIES TO PROHIBIT OR RESTRICT, OR REQUIRE A LOCAL LICENSE FOR, THE OPERATION OF RETAIL MARIJUANA ESTABLISHMENTS; TO PRESCRIBE THE STATE LICENSE APPLICATION AND ISSUANCE PROCESS; TO PRESCRIBE CERTAIN REASONS FOR THE DENIAL OF A STATE LICENSE; TO LIST CERTAIN PERSONS INELIGIBLE FOR A RETAIL MARIJUANA ESTABLISHMENT LICENSE; TO ESTABLISH A MECHANISM FOR RETAIL MARIJUANA BUSINESSES TO ACCESS CAPITOL FROM OUT-OF-STATE INVESTORS; TO REQUIRE PROSPECTIVE LICENSEES TO BE ENTITLED TO POSSESSION OF THE MARIJUANA BUSINESS PREMISES BEFORE BEING GRANTED A STATE LICENSE; TO AUTHORIZE THE TRANSFER OF STATE LICENSES; TO PRESCRIBE REGULATIONS FOR RETAIL MARIJUANA ESTABLISHMENTS; TO ESTABLISH A PROCESS FOR THE RENEWAL OF LICENSES; TO REQUIRE LICENSEES TO DISCLOSE ALL PERSONS HAVING A FINANCIAL INTEREST IN A RETAIL MARIJUANA ESTABLISHMENT; TO DEFINE SEVEN DIFFERENT CLASSES OF LICENSE WHICH MAY BE ISSUED UNDER THE RETAIL MARIJUANA CODE; TO ESTABLISH CERTAIN REQUIREMENTS FOR EACH TYPE OF LICENSE; TO PRESCRIBE LICENSE APPLICATION FEES; TO AUTHORIZE THE STATE LICENSING AUTHORITY TO SANCTION LICENSEES FOR VIOLATIONS OF THE RETAIL MARIJUANA CODE; TO PROVIDE FOR THE DISPOSITION OF UNAUTHORIZED MARIJUANA AND MARIJUANA PRODUCTS; TO REQUIRE LICENSEES TO MAINTAIN CERTAIN RECORDS THAT THE STATE LICENSING AUTHORITY MAY INSPECT; TO PROVIDE THAT DECISIONS OF THE STATE LICENSING AUTHORITY ARE SUBJECT TO JUDICIAL REVIEW; TO DEFINE CERTAIN UNLAWFUL ACTIVITIES UNDER THE MARIJUANA RETAIL CODE; TO PROVIDE THAT THE MARIJUANA RETAIL CODE IS NOT APPLICABLE TO THE LAWFUL USE OF CBD OIL; TO PROVIDE FOR THE IMPOSITION OF SALES TAX ON PERSONS AND BUSINESSES ENGAGED IN THE SELLING OF RETAIL MARIJUANA AND RETAIL MARIJUANA PRODUCTS; TO AMEND SECTIONS 41-29-125, 41-29-127, 41-29-136, 41-29-137, 41-29-139, 41-29-141 AND 41-29-143, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; TO BRING FORWARD SECTION 73-25-29, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Sections 1 through 33 of this act shall be known and may be cited as the "Mississippi Retail Marijuana Code."
SECTION 2. The Legislature declares that passage of this act is an exercise of the police powers of the state for the protection of the economic and social welfare and the health, peace and morals of the people of this state. The Legislature further declares that it is unlawful under state law to cultivate, manufacture, distribute or sell retail marijuana and retail marijuana products except in compliance with the terms, conditions, limitations and restrictions in this act.
SECTION 3. As used in this act, the following words and phrases have the meanings ascribed in this section unless the context clearly indicates otherwise:
(a) "Direct beneficial interest owner" means a person or closely held business entity that owns a share or shares of stock in a licensed retail marijuana business, including the officers, directors, managing members or partners of the licensed retail marijuana business or closely held business entity, or a qualified limited passive investor.
(b) "Escorted" means appropriately checked into the limited access area and accompanied by a person licensed by the State Licensing Authority; however, trade craftspeople not normally engaged in the business of cultivating, processing or selling retail marijuana need not be accompanied on a full-time basis but only reasonably monitored.
(c) "Commissioner" means the Commissioner of Revenue.
(d) "Immature plant" means a nonflowering marijuana plant that is no taller than eight (8) inches and no wider than eight (8) inches, is produced from a cutting, clipping or seedling, and is in a cultivating container.
(e) "Indirect beneficial interest owner" means a holder of a permitted economic interest, a recipient of a commercially reasonable royalty associated with the use of intellectual property by a licensee, a licensed employee who receives a share of the profits from an employee benefit plan, a qualified institutional investor, or another similarly situated person or entity as determined by the State Licensing Authority.
(f) "License" means to grant a license or registration pursuant to this act.
(g) "Licensed premises" means the premises specified in an application for a license under this act which are owned or in possession of the licensee and within which the licensee is authorized to cultivate, manufacture, distribute, sell or test retail marijuana and retail marijuana products in accordance with this act.
(h) "Licensee" means a person licensed or registered under this act.
(i) "Local jurisdiction" means a county or municipality.
(j) "Local licensing authority" means, for any local jurisdiction that has chosen to adopt a local licensing requirement in addition to the state licensing requirements of this act, an authority designated by an order or resolution adopted and duly spread upon the minutes of the governing authorities of the municipality or county.
(k) "Location" means a particular parcel of land that may be identified by an address or other descriptive means.
(l) "Marijuana accessories" means any equipment, products or materials of any kind which are used, intended for use or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana, or for ingesting, inhaling or otherwise introducing marijuana into the human body.
(m) "Marijuana Cash Fund" means a special fund in the State Treasury created under Section 4 of this act.
(n) "Mobile distribution center" means any vehicle, other than a common passenger light-duty vehicle with a short wheel base, which is used to carry a quantity of marijuana greater than one (1) ounce.
(o) "Opaque" means a description of packaging that does not allow the product to be seen without opening the packaging material.
(p) "Operating fees" means fees that may be charged by a local jurisdiction for costs of certain actions, including, but not limited to, inspection, administration and enforcement of retail marijuana establishments authorized under this act.
(q) "Permitted economic interest" means any unsecured convertible debt instrument, option agreement, warrant or any other right to obtain an ownership interest when the holder of the interest is a natural person who is a lawful United States resident and whose right to convert into an ownership interest is contingent on the holder qualifying and obtaining a license as an owner under this act or such other agreements as may be permitted by rule by the State Licensing Authority.
(r) "Person" means a natural person, partnership, association, company, corporation, limited liability company or organization; "person" does not include any governmental organization.
(s) "Premises" means a distinctly identified, as required by the State Licensing Authority, and definite location, which may include a building, a part of a building, a room or any other definite contiguous area.
(t) "Qualified limited passive investor" means a natural person who is a United States citizen and is a passive investor who owns less than a five percent (5%) share or shares of stock in a licensed retail marijuana business.
(u) "Resealable" means a description of a package that continues to function within effectiveness specifications, as established by the State Licensing Authority similar to the federal "Poison Prevention Packaging Act of 1970," 15 U.S.C. Section 1471 et seq., for the number of openings and closings customary for its size and contents, which shall be determined by the State Licensing Authority.
(v) "Retail marijuana" means marijuana that is cultivated, manufactured, distributed or sold by a licensed retail marijuana establishment and includes all parts of the plant of the genus cannabis, whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture or preparation of the plant, its seeds or its resin, including marijuana concentrate. "Retail marijuana" does not include industrial hemp, nor does it include fiber produced from the stalks, oil or cake made from the seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink or other product.
(w) "Retail marijuana cultivation facility" means an entity licensed to cultivate, prepare and package marijuana and sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities and to other marijuana cultivation facilities, but not to consumers.
(x) "Retail marijuana establishment" means a retail marijuana store, a retail marijuana cultivation facility, a retail marijuana products manufacturer or a retail marijuana testing facility.
(y) "Retail marijuana establishment operator" means an entity or person that is not an owner and that is licensed to provide professional operational services to a retail marijuana establishment for direct remuneration from the retail marijuana establishment.
(z) "Retail marijuana products" means concentrated marijuana products and marijuana products that are comprised of marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments and tinctures, which are produced at a retail marijuana products manufacturer.
(aa) "Retail marijuana products manufacturer" means an entity licensed to: purchase marijuana; manufacture, prepare and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers.
(bb) "Retail marijuana store" means an entity licensed to purchase marijuana from marijuana cultivation facilities and marijuana and marijuana products from marijuana product manufacturing facilities and to sell marijuana and marijuana products to consumers.
(cc) "Retail marijuana testing facility" means an entity which is licensed pursuant to this act to analyze and certify the safety and potency of marijuana.
(dd) "Retail marijuana transporter" means an entity or person that is licensed to transport retail marijuana and retail marijuana products from one (1) retail marijuana establishment to another retail marijuana establishment and to temporarily store the transported retail marijuana and retail marijuana products at its licensed premises but which is not authorized to sell retail marijuana or retail marijuana products under any circumstances.
(ee) "Sale" means a transaction: to exchange, barter or traffic in; to solicit or receive and order except through a licensee licensed under this act; to deliver for value in any way other than gratuitously; to peddle or possess with intent to sell; or to traffic in for any consideration promised or obtained directly or indirectly.
(ff) "School" means a public or private preschool or a public or private elementary, middle, junior high or high school or institution of higher education.
(gg) "State Licensing Authority" means the authority created pursuant to Section 4 of this act for the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, sale and testing of retail marijuana in this state.
SECTION 4. (1) For the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, sale and testing of retail marijuana and retail marijuana products in this state, there is created the State Licensing Authority, which shall be the Commissioner of Revenue or an employee of the Department of Revenue designated by the Commissioner of Revenue. The State Licensing Authority shall promulgate regulations regarding retail marijuana and retail marijuana products by October 1, 2017.
(2) The Commissioner of Revenue, or his designee, is the chief administrative officer of the State Licensing Authority and may employ officers and employees as may be determined to be necessary, which officers and employees shall be part of the Department of Revenue.
(3) A State Licensing Authority employee with regulatory oversight responsibilities for marijuana businesses licensed by the State Licensing Authority may not work for, represent or provide consulting services to or otherwise derive pecuniary gain from a marijuana business licensed by the State Licensing Authority or other business entity established for the primary purpose of providing services to the marijuana industry for a period of six (6) months following the employee's last day of employment with the State Licensing Authority.
(4) Any criminal prosecution pursuant to the provisions of this section must be brought within five (5) years from the date the violation occurred.
(5) (a) There is created in the State Treasury a special fund to be known as the Marijuana Cash Fund. All monies collected by the State Licensing Authority pursuant to this act must be transmitted to the State Treasurer, who shall credit the same to the Marijuana Cash Fund. The fund consists of:
(i) Monies collected by the State Licensing Authority; and
(ii) Any additional general fund monies appropriated to the fund which are necessary for the operation of the State Licensing Authority.
(b) Monies in the fund are subject to annual appropriation by the Legislature to the Department of Revenue for the direct and indirect costs associated with implementing this act.
(c) Any monies in the Marijuana Cash Fund not expended for these purposes may be invested by the State Treasurer as provided by law. All interest and income derived from the investment and deposit of monies in the fund must be credited to the fund. Any unexpended and unencumbered monies remaining in the fund at the end of a fiscal year shall remain in the fund and may not be credited or transferred to the general fund or another fund.
SECTION 5. (1) Beginning on January 1, 2018, a person may apply for a retail marijuana establishment license under this act.
(2) (a) A person applying for a license under subsection (1) of this section must complete forms as provided by the State Licensing Authority and pay the application fee and the licensing fee, which shall be deposited in the Marijuana Cash Fund established under Section 4 of this act. The State Licensing Authority shall forward, within seven (7) days, one-half (1/2) of the license application fee to the local jurisdiction unless the local jurisdiction has prohibited the operation of retail marijuana establishments. If the license is denied, the State Licensing Authority shall refund the licensing fee to the applicant.
(b) The State Licensing Authority must act upon an application made under subsection (1) of this section no sooner than forty-five (45) days and no later than ninety (90) days after the date of the application. The State Licensing Authority shall process applications in the order in which complete applications are received by the State Licensing Authority.
(3) A local jurisdiction may enact ordinances or regulations governing the time, place, manner and number of retail marijuana establishments, which may include a local licensing requirement, or may prohibit the operation of retail marijuana establishments through the enactment of an ordinance, regulation or through passage of a measure in a referendum requested by not less than fifteen percent (15%) of the registered electors in the county or municipality, as the case may be.
(4) This act sets forth the exclusive means by which cultivation, manufacture, sale, distribution, dispensing and testing of retail marijuana and retail marijuana products may occur in the State of Mississippi.
(5) (a) Nothing in this act requires an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale or cultivating of marijuana in the workplace or affects the ability of employers to have policies restricting the use of marijuana by employees.
(b) Nothing in this act prohibits a person, employer, school, hospital, detention facility, corporation or any other entity who occupies, owns or controls a property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation or cultivating of marijuana on or in that property.
(6) Before January 1, 2019, and each year thereafter, the State Licensing Authority shall submit a report to the Legislative Budget Committee, the House Ways and Means Committee and the Senate Finance Committee which contains the following information:
(a) The progress that the State Licensing Authority is making in processing licenses;
(b) An overview of the retail marijuana and retail marijuana products markets, including, but not limited to, actual and anticipated market demand and market supply;
(c) Details of the amount of revenue generated by retail marijuana, including any applicable sales taxes, application and license fees, and any other fees, and detailing the expenses incurred by the State Licensing Authority, broken down into categories as determined by the authority; and
(d) The enforcement measures taken against persons licensed pursuant to this act for violations of regulations promulgated pursuant to this act.
SECTION 6. Subject to the provisions of Section 30, a limited access area is a building, room or other contiguous area upon the licensed premises where retail marijuana and retail marijuana products are cultivated, stored, weighed, packaged or tested, under control of the licensee, with access limited to only those persons licensed by the State Licensing Authority and those visitors escorted by a person licensed by the State Licensing Authority. All areas of ingress or egress to limited access areas must be identified clearly as such by a sign as designated by the State Licensing Authority.
SECTION 7. (1) The State Licensing Authority shall develop and maintain a seed-to-sale tracking system that tracks retail marijuana from either seed or immature plant stage until the marijuana or retail marijuana product is sold to a customer at a retail marijuana store to ensure that no marijuana grown or processed by a retail marijuana establishment is sold or otherwise transferred except by a retail marijuana store.
(2) The State Licensing Authority has the following powers and duties:
(a) To grant or refuse state licenses for the cultivation, manufacture, distribution, sale and testing of retail marijuana and retail marijuana products as provided by law; suspend, fine, restrict or revoke such licenses upon a violation of this act or any rule promulgated pursuant to this act; and impose any penalty authorized by this act or any rule promulgated pursuant to this act. The State Licensing Authority may take any action with respect to a registration pursuant to this act as it may with respect to a license pursuant to this act, in accordance with the procedures established pursuant to this act.
(b) To promulgate, before October 1, 2017, rules for the proper regulation and control of the cultivation, manufacture, distribution, sale and testing of retail marijuana and retail marijuana products and for the enforcement of this act and to promulgate amended rules and such special rulings and findings as necessary.
(c) To hear and determine at a public hearing any contested state license denial and any complaints against a licensee and to administer oaths and issue subpoenas to require the presence of persons and the production of papers, books and records necessary to the determination of any hearing so held. The State Licensing Authority, in its discretion, may delegate to the hearing officers of the Department of Revenue the authority to conduct licensing, disciplinary and rule-making hearings. When conducting such hearings, the hearing officers are employees of the State Licensing Authority under the direction and supervision of the Commissioner of Revenue and the State Licensing Authority.
(d) To maintain the confidentiality of reports or other information obtained from a licensee: containing any individualized data, information or records related to the licensee or its operation, including sales information, financial records, tax returns, credit reports, cultivation information, testing results, and security information and plans; or revealing any customer information or any other records that are exempt from public inspection pursuant to state law. Such reports or other information may be used only for a purpose authorized by this act or for any other state or local law enforcement purpose. Any customer information may be used only for a purpose authorized by this act.
(e) To develop such forms, licenses, identification cards and applications as are necessary or convenient in the discretion of the State Licensing Authority for the administration of this act or any of the rules promulgated under this act.
(f) To prepare and transmit annually to the Governor a report accounting for the efficient discharge of all responsibilities assigned by law or directive to the State Licensing Authority.
(3) (a) Rules promulgated pursuant to paragraph (b) of subsection (2) of this section must include, but need not be limited to, the following subjects:
(i) Procedures consistent with this act for the issuance, renewal, suspension and revocation of licenses to operate retail marijuana establishments;
(ii) Consistent with this act, a schedule of application, licensing and renewal fees for retail marijuana establishments;
(iii) Qualifications for licensure under this act, including, but not limited to, the requirement for a fingerprint-based criminal history record check for all owners, officers, managers, contractors, employees and other support staff of entities licensed pursuant to this act;
(iv) 1. Establishing a marijuana and marijuana products independent testing and certification program, within an implementation time frame established by the department, requiring licensees to test marijuana to ensure at a minimum that products sold for human consumption do not contain contaminants that are injurious to health and to ensure correct labeling.
2. Testing may include analysis for microbial and residual solvents and chemical and biological contaminants deemed to be public health hazards by the State Board of Health based on medical reports and published scientific literature.
3. If test results indicate the presence of quantities of any substance determined to be injurious to health, the licensee immediately must quarantine the products and notify the State Licensing Authority. The State Licensing Authority shall give the licensee an opportunity to remediate the product if the test indicated the presence of a microbial. If the licensee is unable to remediate the product, the licensee must document and properly destroy the adulterated product.
4. Testing also must verify THC potency representations and homogeneity for correct labeling and provide a cannabinoid profile for the marijuana product. An individual marijuana piece of ten (10) milligrams or less that has gone through process validation is exempt from continued homogeneity testing. Homogeneity testing for one hundred (100) milligram servings may utilize validation measures.
5. The State Licensing Authority shall determine an acceptable variance of at least plus or minus fifteen percent (15%) for potency representations and procedures to address potency misrepresentations.
6. The State Licensing Authority shall determine the protocols and frequency of marijuana testing by licensees.
7. The executive officer of the State Department of Health shall provide to the State Licensing Authority standards for licensing laboratories pursuant to the requirements as outlined in item 1. of this subparagraph (iv) for marijuana and marijuana products.
(v) Security requirements for any premises licensed under this act, including, at a minimum, lighting, physical security, video and alarm requirements, and other minimum procedures for internal control as deemed necessary by the State Licensing Authority to properly administer and enforce the provisions of this act, including reporting requirements for changes, alterations or modifications to the premises;
(vi) Requirements to prevent the sale or diversion of retail marijuana and retail marijuana products to persons under twenty-one (21) years of age;
(vii) Labeling requirements for retail marijuana and retail marijuana products sold by a retail marijuana establishment which include, but are not limited to:
1. Warning labels;
2. Amount of THC per serving and the number of servings per package for marijuana products;
3. A universal symbol indicating the package contains marijuana; and
4. The potency of the retail marijuana or retail marijuana product highlighted on the label.
(viii) Health and safety regulations and standards for the manufacture of retail marijuana products and the cultivation of retail marijuana;
(ix) Limitations on the display of retail marijuana and retail marijuana products;
(x) Regulation of the storage of, warehouses for, and transportation of retail marijuana and retail marijuana products;
(xi) Sanitary requirements for retail marijuana establishments, including, but not limited to, sanitary requirements for the preparation of retail marijuana products;
(xii) Records to be kept by licensees and the required availability of the records;
(xiii) The reporting and transmittal of monthly sales tax payments by retail marijuana stores, retail marijuana cultivation facilities and retail marijuana products manufacturing facilities;
(xiv) Authorization for the Department of Revenue to have access to licensing information to ensure sales tax payment and the effective administration of this act;
(xv) Rules, effective before October 1, 2017, relating to permitted economic interests including: a process for a criminal history record check; a requirement that a permitted economic interest applicant submit to and pass a criminal history record check; a divestiture; and other agreements that would qualify as permitted economic interests;
(xvi) Compliance with, enforcement of or violation of any provision of this act, or any rule issued pursuant to this act, including procedures and grounds for denying, suspending, fining, restricting or revoking a state license issued pursuant to this act;
(xvii) Establishing a schedule of penalties and procedures for issuing and appealing citations for violation of statutes and rules and issuing administrative citations;
(xviii) Retail marijuana transporter licensed businesses, including requirements for drivers, including: obtaining and maintaining a valid Mississippi driver's license; insurance requirements; acceptable time frames for transport, storage and delivery; requirements for transport vehicles; and requirements for licensed premises;
(xix) Retail marijuana establishment operator licensees, including the form and structure of allowable agreements between operators and owners;
(xx) Nonescorted visitors in limited access areas; and
(xxi) The parameters and qualifications of an indirect beneficial interest owner and a qualified limited passive investor.
(b) (i) Pursuant to the authority granted in paragraph (b) of subsection (2) of this section, before October 1, 2017, the State Licensing Authority shall promulgate rules establishing the equivalent of one (1) ounce of retail marijuana flower in various retail marijuana products including retail marijuana concentrate.
(ii) Before promulgating the rules required by subparagraph (i) of this paragraph, the State Licensing Authority may contract for a scientific study to determine the equivalency of marijuana flower in retail marijuana products including retail marijuana concentrate.
(c) Rules promulgated pursuant to paragraph (b) of subsection (2) of this section also must include the following subjects:
(i) Specifications of duties of officers and employees of the State Licensing Authority;
(ii) Instructions for local jurisdictions and law enforcement officers;
(iii) Requirements for inspections, investigations, searches, seizures, forfeitures and such additional activities as may become necessary from time to time;
(iv) Development of individual identification cards for owners, officers, managers, contractors, employees and other support staff of entities licensed pursuant to this act, including a fingerprint-based criminal history record check as may be required by the State Licensing Authority before issuing a card;
(v) Identification of state licensees and their owners, officers, managers and employees;
(vi) The specification of acceptable forms of picture identification that a retail marijuana store may accept when verifying a sale, including, but not limited to, government-issued identification cards;
(vii) State licensing procedures, including procedures for renewals, reinstatements, initial licenses and the payment of licensing fees; and
(viii) Such other matters as are necessary for the fair, impartial, stringent and comprehensive administration of this act.
(d) Rules promulgated pursuant to paragraph (b) of subsection (2) of this section also must include the following subjects, and the State Licensing Authority may seek the assistance of the State Department of Health when necessary before promulgating the rules:
(i) Signage, marketing and advertising, including, but not limited to, a prohibition on mass-market campaigns that have a high likelihood of reaching persons under twenty-one (21) years of age and other such rules that may include:
1. Allowable packaging and accessory branding;
2. A prohibition on health or physical benefit claims in advertising, merchandising and packaging;
3. A prohibition on unsolicited pop-up advertising on the Internet;
4. A prohibition on banner ads on mass-market websites;
5. A prohibition on opt-in marketing that does not permit an easy and permanent opt-out feature; and
6. A prohibition on marketing directed towards location-based devices, including, but not limited to, cellular phones, unless the marketing is a mobile device application installed on the device by the owner of the device who is twenty-one (21) years of age or older and includes a permanent and easy opt-out feature;
(ii) Prohibiting the sale of retail marijuana and retail marijuana products unless:
1. The product is packaged by the retail marijuana store or the retail marijuana products manufacturer in packaging meeting the requirements established by the State Licensing Authority similar to the federal "Poison Prevention Packaging Act of 1970," 15 U.S.C. Section 1471 et seq.; or
2. The product is placed in an opaque and resealable exit package or container meeting requirements established by the State Licensing Authority at the point of sale before exiting the store;
(iii) The safe and lawful transport of retail marijuana and retail marijuana products between the licensed business and testing laboratories;
(iv) A standardized marijuana serving size amount for edible retail marijuana products, which amount does not contain more than ten (10) milligrams of active THC, designed only to provide consumers with information about the total number of servings of active THC in a particular retail marijuana product, not as a limitation on the total amount of THC in any particular item; labeling requirements regarding servings for edible retail marijuana products; and limitations on the total amount of active THC in a sealed internal package that is no more than one hundred (100) milligrams of active THC;
(v) Labeling guidelines concerning the total content of THC per unit of weight;
(vi) Prohibition or regulation of additives to any retail marijuana product, including, but not limited to, those that are toxic, designed to make the product more addictive, designed to make the product more appealing to children, or misleading to consumers, but not including common baking and cooking items;
(vii) Permission for a local fire department to conduct an annual fire inspection of a retail marijuana cultivation facility; and
(viii) 1. A prohibition on the production and sale of edible retail marijuana products that are in the distinct shape of a human, animal or fruit. Geometric shapes and products that are simply fruit flavored are not considered fruit. Products in the shape of a marijuana leaf are permissible. Nothing in this subparagraph applies to a company logo.
2. The rules promulgated pursuant to this subparagraph shall take effect on October 1, 2017.
(e) (i) Pursuant to the authority granted in paragraph (b) of subsection (2) of this section, before October 1, 2017, the State Licensing Authority shall promulgate rules requiring that edible retail marijuana products be clearly identifiable, when practicable, with a standard symbol indicating that it contains marijuana and is not for consumption by children. The symbols promulgated by rule of the State Licensing Authority must not appropriate signs or symbols associated with another Mississippi business or industry.
(ii) Before October 1, 2017, the State Licensing Authority shall convene a stakeholders group, including, but not limited to, representatives of the State Department of Health, prospective retail marijuana store licensees, prospective retail marijuana products manufacturers licensees, child abuse prevention experts, and advocates for children's health, to make recommendations for rules on how an edible retail marijuana product can be clearly identifiable, when practicable, to indicate that it contains marijuana, is not for consumption by children, and is safe for consumers.
(f) Nothing in this act may be construed as delegating to the State Licensing Authority the power to fix prices for retail marijuana.
(g) Nothing in this act may be construed to limit a law enforcement agency's ability to investigate unlawful activity in relation to a retail marijuana establishment. A law enforcement agency may run a criminal history record check of a licensee or employee of a licensee during an investigation of unlawful activity related to retail marijuana and retail marijuana products.
(h) The Legislature finds and declares that matters related to labeling as regulated pursuant to subparagraph (vii) of paragraph (a) of this subsection and subparagraphs (iv) and (v) of paragraph (d) of this subsection, packaging as regulated pursuant to subparagraph (ii) of paragraph (d) of this subsection, and testing as regulated pursuant to subparagraph (iv) of paragraph (a) of this subsection are matters of statewide concern, and the sole regulatory authority for labeling, packaging and testing is pursuant to this section.
(4) (a) The State Licensing Authority shall create a statewide licensure class system for retail marijuana cultivation facilities. The classifications may be based upon: square footage of the facility; lights, lumens, or wattage; lit canopy; the number of cultivating plants; a combination of the foregoing; or other reasonable metrics. The State Licensing Authority shall create a fee structure for the license class system.
(b) (i) The State Licensing Authority may establish limitations upon retail marijuana production through one or more of the following methods:
1. Placing or modifying a limit on the number of licenses that it issues, by class or overall, but in placing or modifying the limits, the authority shall consider the reasonable availability of new licenses after a limit is established or modified;
2. Placing or modifying a limit on the amount of production permitted by a retail marijuana cultivation license or class of licenses based upon some reasonable metric or set of metrics including, but not limited to, those items detailed in paragraph (a) of this subsection, previous months' sales, pending sales, or other reasonable metrics as determined by the State Licensing Authority; and
3. Placing or modifying a limit on the total amount of production by retail marijuana cultivation licensees in the state, collectively, based upon some reasonable metric or set of metrics including, but not limited to, those items detailed in paragraph (a) of this subsection, as determined by the State Licensing Authority.
(ii) Notwithstanding any provision of this act to the contrary, in considering any such limitations, the State Licensing Authority, in addition to any other relevant considerations, shall:
1. Consider the total current and anticipated demand for retail marijuana and retail marijuana products in Mississippi; and
2. Attempt to minimize the market for unlawful marijuana.
SECTION 8. (1) When the State Licensing Authority receives an application for original licensing or renewal of an existing license for any marijuana establishment, the State Licensing Authority shall provide, within seven (7) days, a copy of the application to the local jurisdiction in which the establishment is to be located unless the local jurisdiction has prohibited the operation of retail marijuana establishments. The local jurisdiction shall determine whether the application complies with local restrictions on time, place, manner and the number of marijuana businesses. The local jurisdiction shall inform the State Licensing Authority whether the application complies with local restrictions on time, place, manner and the number of marijuana businesses.
(2) A local jurisdiction may impose a separate local licensing requirement as a part of its restrictions on time, place, manner and the number of marijuana businesses. A local jurisdiction may decline to impose any local licensing requirements, but a local jurisdiction shall notify the State Licensing Authority that it either approves or denies each application forwarded to it.
SECTION 9. (1) If a local jurisdiction issues local licenses for a retail marijuana establishment, a local jurisdiction may schedule a public hearing on the application. If the local jurisdiction schedules a hearing, it shall post and publish public notice of the hearing not less than ten (10) days before the hearing. The local jurisdiction shall give public notice by posting a sign in a conspicuous place on the premises for which a local license application has been made and by publication in a newspaper of general circulation in the county in which the premises are located.
(2) If a local jurisdiction does not issue local licenses, the local jurisdiction may give public notice of the state license application by posting a sign in a conspicuous place on the premises for which a state license application has been made and by publication in a newspaper of general circulation in the county in which the premises are located.
SECTION 10. (1) Applications for a state license under this act must be made to the State Licensing Authority on forms prepared and furnished by the State Licensing Authority and must set forth the information that the State Licensing Authority requires to enable the State Licensing Authority to determine whether a state license should be granted. The information must include the name and address of the applicant and the names and addresses of the officers, directors or managers. Each application must be verified by the oath or affirmation of the person or persons which the State Licensing Authority may prescribe. The State Licensing Authority may issue a state license to an applicant pursuant to this section upon completion of the applicable criminal history background check associated with the application, and the state license is conditioned upon local jurisdiction approval. A license applicant may not operate a licensed retail marijuana business without state and local jurisdiction approval. If the applicant does not receive local jurisdiction approval within one (1) year from the date of State Licensing Authority approval, the state license expires and may not be renewed. If an application is denied by the local licensing authority, the State Licensing Authority must revoke the state-issued license.
(2) Nothing in this act preempts or otherwise impairs the power of a local government to enact ordinances or resolutions concerning matters authorized to local governments.
SECTION 11. (1) The State Licensing Authority must deny a state license if the premises on which the applicant proposes to conduct its business does not meet the requirements of this act or for reasons set forth in Section 10. The State Licensing Authority may refuse or deny a license renewal, reinstatement or initial license issuance for good cause. For purposes of this subsection, "good cause" means:
(a) The licensee or applicant has violated, does not meet, or has failed to comply with any of the terms, conditions or provisions of this act, any rules promulgated pursuant to this act, or any supplemental local law, rules or regulations;
(b) The licensee or applicant has failed to comply with any special terms or conditions that were placed on its license pursuant to an order of the state or local licensing authority; or
(c) The licensed premises have been operated in a manner that adversely affects the public health or the safety of the immediate neighborhood in which the establishment is located.
(2) If the State Licensing Authority denies a state license pursuant to subsection (1) of this section, the applicant is entitled to a hearing and judicial review. The State Licensing Authority shall provide written notice of the grounds for denial of the state license to the applicant and to the local jurisdiction at least fifteen (15) days before the hearing.
SECTION 12. (1) A license authorized by this act may not be issued to or held by:
(a) A person until the fee for the license has been paid;
(b) An individual whose criminal history indicates that he or she is not of good moral character;
(c) A person other than an individual if the criminal history of any of its officers, directors, stockholders or owners indicates that the officer, director, stockholder or owner is not of good moral character;
(d) A person financed, in whole or in part, by any other person whose criminal history indicates he or she is not of good moral character and reputation satisfactory to the respective licensing authority;
(e) A person under twenty-one (21) years of age;
(f) A person licensed under this act who, during a period of licensure, or who, at the time of application, has failed to:
(i) File any tax return related to a retail marijuana establishment; or
(ii) Pay any taxes, interest or penalties due, as determined by final agency action, relating to a retail marijuana establishment;
(g) A person who:
(i) Has discharged a sentence for a conviction of a felony in the five (5) years immediately preceding his or her application date; or
(ii) Has discharged a sentence for a conviction of a felony pursuant to any state or federal law regarding the possession, distribution, manufacturing, cultivation or use of a controlled substance in the ten (10) years immediately preceding his or her application date or five (5) years from July 1, 2017, whichever is longer; however, the licensing authority may grant a license to a person if the person has a state felony conviction based on possession or use of marijuana or marijuana concentrate which would not be a felony if the person were convicted of the offense on the date he or she applied for licensure;
(h) A person who employs another person at a retail marijuana establishment who has not submitted fingerprints for a criminal history record check or whose criminal history record check reveals that the person is ineligible;
(i) A sheriff, deputy sheriff, police officer or prosecuting officer, or an officer or employee of the State Licensing Authority or a local licensing authority;
(j) A person applying for a license for a location that currently is licensed as a retail food establishment or wholesale food registrant; or
(k) A publicly traded company.
(2) (a) In investigating the qualifications of an applicant or a licensee, the state and local licensing authorities may have access to criminal history record information furnished by a criminal justice agency subject to any restrictions imposed by that agency. If the state or local licensing authority considers the applicant's criminal history record, the state or local licensing authority also must consider any information provided by the applicant regarding the criminal history record, including, but not limited to, evidence of rehabilitation, character references and educational achievements, especially those items pertaining to the time between the applicant's last criminal conviction and the consideration of the application for a state license.
(b) As used in paragraph (a) of this subsection, "criminal justice agency" means any federal, state or municipal court or any governmental agency or subunit of an agency that administers criminal justice pursuant to a statute or executive order and which allocates a substantial part of its annual budget to the administration of criminal justice.
(c) At the time of filing an application for issuance of a state retail marijuana establishment license, an applicant must submit a set of his or her fingerprints and file personal history information concerning the applicant's qualifications for a state license on forms prepared by the State Licensing Authority. The State Licensing Authority or local jurisdiction shall submit the fingerprints to the Department of Public Safety for the purpose of conducting fingerprint-based criminal history record checks. The Department of Public Safety shall forward the fingerprints to the Federal Bureau of Investigation for the purpose of conducting fingerprint-based criminal history record checks. The State Licensing Authority or local jurisdiction may acquire a name-based criminal history record check for an applicant or a license holder who has twice submitted to a fingerprint-based criminal history record check and whose fingerprints are unclassifiable. An applicant who previously has submitted fingerprints for state or local licensing purposes may request that the fingerprints on file be used. The State Licensing Authority or local jurisdiction shall use the information resulting from the fingerprint-based criminal history record check to investigate and determine whether an applicant is qualified to hold a state or local license pursuant to this act. The State Licensing Authority or local jurisdiction may verify any of the information an applicant is required to submit.
SECTION 13. (1) The purpose of this section is to provide a mechanism for Mississippi retail marijuana businesses to access capital from investors in other states.
(2) A direct beneficial interest owner who is a natural person must either:
(a) Have been a resident of Mississippi for at least one (1) year before the date of the application; or
(b) Be a United States citizen before the date of the application.
(3) (a) A retail marijuana business may be comprised of an unlimited number of direct beneficial interest owners that have been residents of Mississippi for at least one (1) year before the date of the application.
(b) A retail marijuana business that is comprised of one or more direct beneficial interest owners who have not been Mississippi residents for at least one (1) year before application must have at least one (1) officer who has been a Mississippi resident for at least one (1) year before application, and all officers with day-to-day operational control over the business must be Mississippi residents for at least one (1) year before application. A retail marijuana business under this paragraph is limited to no more than fifteen (15) direct beneficial interest owners, including all parent and subsidiary entities, all of whom are natural persons.
(c) Notwithstanding the requirements of paragraph (b) of this subsection, the State Licensing Authority may review the limitation on the number of direct beneficial interest owners and may increase the number of allowable interests above fifteen (15) based on reasonable considerations such as developments in state and federal financial regulations, market conditions and the licensee's ability to access legitimate sources of capital.
(d) A direct beneficial interest owner that is a closely held business entity must consist entirely of natural persons who are United States citizens before the date of the application, including all parent and subsidiary entities.
(4) A retail marijuana business may include qualified institutional investors that own thirty percent (30%) or less of the retail marijuana business.
(5) (a) A person intending to apply as a direct beneficial interest owner who is not a Mississippi resident for at least one (1) year before the date of application must first submit a request to the State Licensing Authority for a finding of suitability as a direct beneficial interest owner. The person must receive a finding of suitability before submitting an application to the State Licensing Authority to be a direct beneficial interest owner. Failure to receive a finding of suitability before application is grounds for denial by the State Licensing Authority.
(b) The State Licensing Authority shall perform a limited initial background check on qualified limited passive investors. If the initial background check provides reasonable cause for additional investigation, the State Licensing Authority may require a full background check.
(6) The State Licensing Authority shall review the operating documents of the retail marijuana business to ensure compliance with this section.
(7) For purposes of this section, unless the context requires otherwise, the term "institutional investor" means:
(a) A bank as defined in Section 3(a)(6) of the federal Securities Exchange Act of 1934, as amended;
(b) An insurance company as defined in Section 2(a)(17) of the federal Investment Company Act of 1940, as amended;
(c) An investment company registered under Section 8 of the federal Investment Company Act of 1940, as amended;
(d) An investment adviser registered under Section 203 of the federal Investment Advisers Act of 1940, as amended;
(e) Collective trust funds as defined in Section 3(c)(11) of the federal Investment Company Act of 1940, as amended;
(f) An employee benefit plan or pension fund that is subject to the federal Employee Retirement Income Security Act of 1974, as amended, excluding an employee benefit plan or pension fund sponsored by a licensee or an intermediary or holding company licensee that directly or indirectly owns five percent (5%) or more of a licensee;
(g) A state or federal government pension plan;
(h) A group comprised entirely of persons specified in paragraphs (a) through (g) of this subsection; or
(i) Any other entity identified through rule by the State Licensing Authority.
SECTION 14. The State Licensing Authority may not approve an application for the issuance of a state license pursuant to this act until it is established that the applicant is, or will be, entitled to possession of the premises for which application is made under a lease, rental agreement or other arrangement for possession of the premises or by virtue of ownership of the premises.
SECTION 15. (1) A state license granted under this act is not transferable except as provided in this section, but this section does not prevent a change of location as provided in subsection (12) of Section 16.
(2) For a transfer of ownership, a license holder must apply to the State Licensing Authority on forms prepared and furnished by the State Licensing Authority. Upon receipt of an application for transfer of ownership, the State Licensing Authority shall submit, within seven (7) days, a copy of the application to the local jurisdiction to determine whether the transfer complies with local restrictions on transfer of ownership. In determining whether to permit a transfer of ownership, the State Licensing Authority may consider only the requirements of this act, any rules promulgated by the State Licensing Authority and any other local restrictions. The local jurisdiction may hold a hearing on the application for transfer of ownership; however, the local jurisdiction may not hold a hearing pursuant to this subsection until the local jurisdiction has posted a notice of hearing in the manner described in Section 9 on the licensed premises for a period of ten (10) days and has provided notice of the hearing to the applicant at least ten (10) days before the hearing. SECTION 16. (1) Local jurisdictions may adopt and enforce regulations for retail marijuana establishments that are at least as restrictive as the provisions of this act and any rule promulgated pursuant to this act.
(2) A retail marijuana establishment may not operate until it is licensed by the State Licensing Authority pursuant to this act and approved by the local jurisdiction. If an application is denied by the local licensing authority, the State Licensing Authority must revoke the state-issued license. In connection with a license, the applicant shall provide a complete and accurate application as required by the State Licensing Authority.
(3) A retail marijuana establishment shall notify the State Licensing Authority in writing of the name, address and date of birth of an owner, officer or manager before the new owner, officer or manager begins managing, owning or associating with the operation. The owner, officer, manager or employee must pass a fingerprint-based criminal history record check as required by the State Licensing Authority and obtain the required identification before being associated with, managing, owning or working at the operation.
(4) A retail marijuana establishment may not acquire, possess, cultivate, deliver, transfer, transport, supply or dispense marijuana for any purpose except as authorized by this act.
(5) All managers and employees of a retail marijuana establishment must be residents of Mississippi upon the date of their license application. All licenses granted pursuant to this act are valid for a period of one (1) year after the date of issuance unless revoked or suspended pursuant to this act or the rules promulgated pursuant to this act.
(6) Before granting a state license, the State Licensing Authority may consider, except when this act specifically provides otherwise, the requirements of this act, any rules promulgated pursuant to this act, and all other reasonable restrictions that are or may be placed upon the licensee by the licensing authority.
(7) (a) Each license issued under this act is separate and distinct. It is unlawful for a person to exercise any of the privileges granted under a license other than the license that the person holds or for a licensee to allow any other person to exercise the privileges granted under the licensee's license. A separate license must be required for each specific business or business entity and each geographical location.
(b) At all times, a licensee must possess and maintain possession of the premises for which the license is issued by ownership, lease, rental or other arrangement for possession of the premises.
(8) The licenses issued pursuant to this act must specify the date of issuance, the period of licensure, the name of the licensee and the premises licensed. The licensee shall display conspicuously the license at all times on the licensed premises.
(9) In computing any time prescribed by this act, the day of the act, event or default from which the designated time begins to run is not included. Saturdays, Sundays and legal holidays are counted as any other day.
(10) A licensee must report each transfer or change of financial interest in the license to the state and local licensing authorities and receive approval before any transfer or change pursuant to Section 15. A report is required for transfers of capital stock of any corporation regardless of size.
(11) Each licensee shall manage the licensed premises himself or herself or employ a separate and distinct manager on the premises and shall report the name of the manager to the state and local licensing authorities. The licensee shall report any change in manager to the state and local licensing authorities within seven (7) days after the change pursuant to Section 15.
(12) (a) A licensee may move the permanent location to any other place in Mississippi once permission to do so is granted by the state and local jurisdiction provided for in this act. Upon receipt of an application for change of location, the State Licensing Authority, within seven (7) days, shall submit a copy of the application to the local jurisdiction to determine whether the transfer complies with all local restrictions on change of location.
(b) In permitting a change of location, the local jurisdiction must consider all reasonable restrictions that are or may be placed upon the new location by the governing authorities of the municipality or county. Any change in location must be in accordance with all requirements of this act and rules promulgated pursuant to this act.
SECTION 17. (1) Ninety (90) days before the expiration date of an existing license, the State Licensing Authority must notify the licensee of the expiration date by first-class mail at the licensee's address of record with the State Licensing Authority. A licensee may apply for the renewal of an existing license to the State Licensing Authority not less than thirty (30) days before the date of expiration. Upon receipt of an application for renewal of an existing license and any applicable fees, the State Licensing Authority must submit, within seven (7) days, a copy of the application to the local jurisdiction to determine whether the application complies with all local restrictions on renewal of licenses. The State Licensing Authority may not accept an application for renewal of a license after the date of expiration, except as otherwise provided in subsection (2) of this section. The State Licensing Authority may extend the expiration date of the license and accept a late application for renewal of a license if the applicant has filed a timely renewal application with the local licensing authority. Subject to the requirements of this subsection and subsection (2) and based upon reasonable grounds, the state or local licensing authority, in its discretion, may waive the thirty-day time requirements set forth in this subsection.
(2) The State Licensing Authority may require an additional fingerprint request when there is a demonstrated investigative need.
(3) (a) Notwithstanding the provisions of subsection (1) of this section, a licensee whose license has been expired for not more than ninety (90) days may file a late renewal application upon the payment of a nonrefundable late application fee of Five Hundred Dollars ($500.00) to the State Licensing Authority. A licensee who files a late renewal application and pays the requisite fees may continue to operate until the State Licensing Authority takes final action to approve or deny the licensee's late renewal application unless the State Licensing Authority summarily suspends the license pursuant to this act and rules promulgated pursuant to this act.
(b) The State Licensing Authority may continue the license administratively and accept a later application for renewal of a license at the discretion of the State Licensing Authority.
SECTION 18. The State Licensing Authority, in its discretion, may revoke or elect not to renew any license if it determines that the licensed premises have been inactive, without good cause, for at least one (1) year.
SECTION 19. (1) The State Licensing Authority shall require a complete disclosure of all persons having a direct or indirect financial interest, and the extent of such interest, in each license issued under this act.
(2) This section is intended to prohibit and prevent the control of the outlets for the sale of retail marijuana or retail marijuana products by a person or party other than the persons licensed pursuant to this act.
SECTION 20. (1) For the purpose of regulating the cultivation, manufacture, distribution, sale and testing of retail marijuana and retail marijuana products, the State Licensing Authority, in its discretion, upon receipt of an application in the prescribed form, may issue and grant to the applicant a license from any of the following classes, subject to the provisions and restrictions provided by this act:
(a) Retail marijuana store license;
(b) Retail marijuana cultivation facility license;
(c) Retail marijuana products manufacturing license;
(d) Retail marijuana testing facility license;
(e) Occupational licenses and registrations for owners, managers, operators, employees, contractors and other support staff employed by, working in, or having access to restricted areas of the licensed premises, as determined by the State Licensing Authority. The State Licensing Authority may take any action with respect to a registration pursuant to this act as it may with respect to a license pursuant to this act, in accordance with the procedures established pursuant to this act;
(f) Retail marijuana transporter license; and
(g) Retail marijuana business operator license.
(2) (a) A person may operate a licensed optional cultivation facility and any retail marijuana establishment at the same location if the local jurisdiction permits a dual operation.
(b) A dual cultivation business operation must maintain either physical or virtual separation of the two (2) facilities and the plants and inventory of the two (2) facilities.
(3) All persons licensed pursuant to this act must collect sales tax on the gross proceeds of the retail sales made at a retail marijuana store at the rate prescribed under Chapter 65, Title 27, Mississippi Code of 1972.
(4) Notwithstanding any other provision of law to the contrary, a licensed retail cultivation facility or a licensed retail marijuana products manufacturer may compensate its employees using performance-based incentives.
SECTION 21. (1) (a) A retail marijuana store license may be issued only to a person selling retail marijuana or retail marijuana products pursuant to the terms and conditions of this act.
(b) A retail marijuana store may cultivate its own retail marijuana if it obtains a retail marijuana cultivation facility license, or it may purchase retail marijuana from a licensed retail marijuana cultivation facility.
(c) A retail marijuana store may not accept any retail marijuana purchased from a retail marijuana cultivation facility unless the retail marijuana store is provided with evidence that any applicable sales tax due was paid.
(d) The retail marijuana store shall track all of its retail marijuana and retail marijuana products from the point that they are transferred from a retail marijuana cultivation facility or retail marijuana products manufacturer to the point of sale.
(2) (a) Notwithstanding any provisions of this section to the contrary, a retail marijuana store licensee also may sell retail marijuana products that are prepackaged and labeled as required by rules of the State Licensing Authority pursuant to Section 7.
(b) A retail marijuana store licensee may transact with a retail marijuana products manufacturing licensee for the purchase of retail marijuana products upon a retail marijuana products manufacturing licensee's licensed premises or a retail marijuana store's licensed premises.
(3) (a) A retail marijuana store may not sell more than one (1) ounce of retail marijuana or its equivalent in retail marijuana products, including retail marijuana concentrate, except for nonedible, nonpsychoactive retail marijuana products, including ointments, lotions, balms and other nontransdermal topical products, during a single transaction to a person. As used in this paragraph, "equivalent in retail marijuana products" has the same meaning as established by the State Licensing Authority by rule pursuant to Section 7.
(b) (i) Before initiating a sale, the employee of the retail marijuana store making the sale must verify that the purchaser has a valid identification card showing the purchaser is twenty-one (21) years of age or older. If a person under twenty-one (21) years of age presents a fraudulent proof of age, any action relying on the fraudulent proof of age is not grounds for the revocation or suspension of any license issued under this act.
(ii) 1. If a retail marijuana store licensee or employee has reasonable cause to believe that a person is under twenty-one (21) years of age and is exhibiting fraudulent proof of age in an attempt to obtain any retail marijuana or marijuana-infused product, the licensee or employee may confiscate the fraudulent proof of age, if possible, and must, within seventy-two (72) hours after the confiscation, remit the proof of age to a state or local law enforcement agency. The failure to confiscate a fraudulent proof of age or to remit to a state or local law enforcement agency within seventy-two (72) hours after the confiscation does not constitute a criminal offense.
2. If a retail marijuana store licensee or employee believes that a person is under twenty-one (21) years of age and is exhibiting fraudulent proof of age in an attempt to obtain any retail marijuana or retail marijuana-infused product, the licensee or employee or any peace or police officer, acting in good faith and upon probable cause based upon reasonable grounds, may detain and question the person in a reasonable manner for the purpose of ascertaining whether the person is guilty of any unlawful act regarding the purchase of retail marijuana. The questioning of a person by an employee or a peace or police officer does not render the licensee, employee, or peace or police officer civilly or criminally liable for slander, false arrest, false imprisonment, malicious prosecution or unlawful detention.
(4) A retail marijuana store may provide, except as required by Section 7, a sample of its products to a facility that has a marijuana testing facility license from the State Licensing Authority for testing and research purposes. A retail marijuana store shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.
(5) All retail marijuana and retail marijuana products sold at a licensed retail marijuana store must be packaged and labeled as required by rules of the State Licensing Authority pursuant to Section 7.
(6) A licensed retail marijuana store must comply with all provisions of state law relating to persons with disabilities.
(7) (a) A licensed retail marijuana store may sell only retail marijuana, retail marijuana products, marijuana accessories, nonconsumable products such as apparel, and marijuana related products such as childproof packaging containers. A licensed retail marijuana store may not sell or give away any consumable product, including, but not limited to, cigarettes, alcohol and edible products that do not contain marijuana, such as sodas, candies and baked goods.
(b) A licensed retail marijuana store may not sell any retail marijuana or retail marijuana products that contain nicotine or alcohol, if the sale of the alcohol would require a license under Chapter 71, Title 27, Mississippi Code of 1972.
(c) A licensed retail marijuana store may not sell retail marijuana or retail marijuana products over the Internet or deliver retail marijuana or retail marijuana products to a person not physically present in the retail marijuana store's licensed premises.
(8) The premises of a licensed retail marijuana store is the only place where an automatic dispensing machine that contains retail marijuana or retail marijuana products may be located. If a licensed retail marijuana store uses an automatic dispensing machine that contains retail marijuana and retail marijuana products, it must comply with the regulations promulgated by the State Licensing Authority for its use.
(9) Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana store.
(10) Notwithstanding any other provision of state law, sales of retail marijuana and retail marijuana products are not exempt from state or local sales tax.
(11) A display case containing marijuana concentrate must include the potency of the marijuana concentrate next to the name of the product.
SECTION 22. (1) A retail marijuana cultivation facility license may be issued only to a person who cultivates retail marijuana for sale and distribution to licensed retail marijuana stores, retail marijuana products manufacturing licensees or other retail marijuana cultivation facilities.
(2) A retail marijuana cultivation facility shall remit to the Department of Revenue the sales tax due on all sales at wholesale to retail marijuana stores at the rate prescribed in Section 34 of this act.
(3) A retail marijuana cultivation facility shall track the marijuana it cultivates from seed or immature plant to wholesale purchase. Before delivery of any sold retail marijuana, the retail marijuana cultivation facility must provide evidence that it paid the applicable sales tax due on the retail marijuana.
(4) A retail marijuana cultivation facility may provide, except as required by Section 7, a sample of its products to a facility that has a marijuana testing facility license from the State Licensing Authority for testing and research purposes. A retail marijuana cultivation facility shall maintain a record of what was provided to the testing facility, the identity of the testing facility and the testing results.
(5) Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana cultivation facility.
SECTION 23. (1) (a) A retail marijuana products manufacturing license may be issued to a person who manufactures retail marijuana products pursuant to the terms and conditions of this act.
(b) A retail marijuana products manufacturer may cultivate its own retail marijuana if it obtains a retail marijuana cultivation facility license, or it may purchase retail marijuana from a licensed retail marijuana cultivation facility. A retail marijuana products manufacturer shall track all of its retail marijuana from the point it is either transferred from its retail marijuana cultivation facility or when it is delivered to the retail marijuana products manufacturer from a licensed retail marijuana cultivation facility to the point of transfer to a licensed retail marijuana store.
(c) A retail marijuana products manufacturer shall remit to the Department of Revenue the sales tax due on all sales at wholesale to retail marijuana stores at the rate prescribed in Section 34 of this act.
(d) A retail marijuana products manufacturer may not accept any retail marijuana purchased from a retail marijuana cultivation facility unless the retail marijuana products manufacturer is provided with evidence that any applicable sales tax was paid.
(e) A retail marijuana products manufacturer shall not:
(i) Add any marijuana to a food product where the manufacturer of the food product holds a trademark to the food product's name; however, a manufacturer may use a trademarked food product if the manufacturer uses the product as a component or as part of a recipe and where the marijuana product manufacturer does not state or advertise to the consumer that the final retail marijuana product contains a trademarked food product;
(ii) Intentionally or knowingly label or package a retail marijuana product in a manner that would cause a reasonable consumer confusion as to whether the retail marijuana product was a trademarked food product; or
(iii) Label or package a product in a manner that violates any federal trademark law or regulation.
(2) Retail marijuana products may be prepared only on a licensed premises that is used exclusively for the manufacture and preparation of retail marijuana or retail marijuana products and using equipment that is used exclusively for the manufacture and preparation of retail marijuana products.
(3) All licensed premises on which retail marijuana products are manufactured must meet the sanitary standards for retail marijuana product preparation promulgated pursuant to Section 7.
(4) (a) The retail marijuana product must be sealed and conspicuously labeled in compliance with this act and any rules promulgated pursuant to this act. The labeling of retail marijuana products is a matter of statewide concern.
(b) The standard symbol requirements, as promulgated pursuant to Section 7, do not apply to a multiserving liquid retail marijuana product, which is impracticable to mark, if the product complies with all statutory and rule packaging requirements for multiserving edibles and complies with the following enhanced requirements to reduce the risk of accidental ingestion:
(i) A multiserving liquid must be packaged in a structure that uses a single mechanism to achieve both child-resistance and accurate pouring measurement of each liquid serving in increments equal to or less than ten (10) milligrams of active THC per serving, with no more than one hundred (100) milligrams of active THC total per package; and
(ii) The measurement component of a multiserving liquid must be within the child-resistant cap or closure of the bottle and may not be a separate component.
(5) Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana products manufacturing facility.
(6) A retail marijuana products manufacturer may provide, except as required by Section 7, a sample of its products to a facility that has a retail marijuana testing facility license from the State Licensing Authority for testing and research purposes. A retail marijuana products manufacturer shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.
(7) An edible retail marijuana product may list its ingredients and compatibility with dietary practices.
(8) A licensed retail marijuana products manufacturer shall package and label each product manufactured as required by rules of the State Licensing Authority pursuant to Section 7.
(9) All retail marijuana products that require refrigeration to prevent spoilage must be stored and transported in a refrigerated environment.
SECTION 24. (1) A retail marijuana testing facility license may be issued to a person who performs testing and research on retail marijuana. The facility may develop and test retail marijuana products.
(2) The State Licensing Authority shall promulgate rules pursuant to its authority in Section 7 related to acceptable testing and research practices, including, but not limited to, testing, standards, quality control analysis, equipment certification and calibration, and chemical identification and other substances used in bona fide research methods.
(3) A person who has an interest in a retail marijuana testing facility license from the State Licensing Authority for testing purposes may not have any interest in a licensed optional premises cultivation operation, a licensed retail marijuana store, a licensed retail marijuana cultivation facility, or a licensed retail marijuana products manufacturer. A person who has an interest in a licensed optional premises cultivation operation, a licensed retail marijuana store, a licensed retail marijuana cultivation facility, or a licensed retail marijuana products manufacturer may not have an interest in a facility that has a retail marijuana testing facility license.
SECTION 25. (1) (a) A retail marijuana transporter license may be issued to a person to provide logistics, distribution and storage of retail marijuana and retail marijuana products. Notwithstanding any other provisions of law, a retail marijuana transporter license is valid for two (2) years. A retail marijuana transporter license may not be transferred with a change of ownership. A licensed retail marijuana transporter is responsible for the retail marijuana and retail marijuana products once it takes control of the product.
(b) A licensed retail marijuana transporter may contract with multiple licensed retail marijuana businesses.
(c) Each retail marijuana transporter must hold a valid retail marijuana transporter license; however, an entity licensed pursuant to this act which provides its own distribution is not required to have a retail marijuana transporter license to transport and distribute its products. The State Licensing Authority shall begin accepting applications for the retail marijuana transporter license after January 1, 2018.
(2) A retail marijuana transporter licensee may maintain a licensed premises to temporarily store retail marijuana and retail marijuana products and to use as a centralized distribution point. The licensed premises must be located in a jurisdiction that permits the operation of retail marijuana stores. A licensed retail marijuana transporter may store and distribute retail marijuana and retail marijuana products from this location. A storage facility must meet the same security requirements that are required to obtain a retail marijuana cultivation license.
(3) A retail marijuana transporter licensee shall use the seed-to-sale tracking system developed pursuant to Section 7 to create shipping manifests documenting the transport of retail marijuana and retail marijuana products throughout the state.
(4) A retail marijuana transporter licensee may:
(a) Maintain and operate one or more warehouses in the state to handle retail marijuana and retail marijuana products; and
(b) Deliver retail marijuana products on orders previously taken if the place where orders are taken and delivered is licensed.
SECTION 26. A retail marijuana business operator license may be issued to a person who operates a retail marijuana establishment licensed pursuant to this act, for an owner licensed pursuant to this act, and who may receive a portion of the profits as compensation.
SECTION 27. (1) The State Licensing Authority shall charge and collect fees under this act. The application fee for a person applying for a license under this act shall be Five Thousand Dollars ($5,000.00). The State Licensing Authority shall transfer Two Thousand Five Hundred Dollars ($2,500.00) of the fee to the Marijuana Cash Fund and remit Two Thousand Five Hundred Dollars ($2,500.00) to the local jurisdiction in which the license is proposed to be issued.
(2) A local jurisdiction in which a license under this act may be permitted may adopt and impose operating fees in an amount determined by the local jurisdiction on marijuana establishments located within the local jurisdiction.
SECTION 28. (1) In addition to any other sanctions prescribed by this act or rules promulgated pursuant to this act, the State Licensing Authority, on its own motion or on complaint, after investigation and opportunity for a public hearing at which the licensee must be afforded an opportunity to be heard, may fine a licensee or suspend or revoke a license issued by the authority for a violation by the licensee or by any of the agents or employees of the licensee of the provisions of this act, or any of the rules promulgated pursuant to this act, or of any of the terms, conditions or provisions of the license issued by the State Licensing Authority. The State Licensing Authority may administer oaths and issue subpoenas to require the presence of persons and the production of papers, books and records necessary to the determination of a hearing that the state authority is authorized to conduct.
(2) The State Licensing Authority shall provide notice of suspension, revocation, fine or other sanction, as well as the required notice of the hearing pursuant to subsection (1) of this section, by mailing the same in writing to the licensee at the address contained in the license and, if different, at the last address furnished to the authority by the licensee. Except in the case of a summary suspension, a suspension may not be for a period longer than six (6) months. If a license is suspended or revoked, no part of the fees paid in connection with the license may be returned to the licensee. Any license may be summarily suspended by the State Licensing Authority without notice pending any prosecution, investigation or public hearing. This section may not be construed to prevent the summary suspension of a license.
(3) (a) Whenever a decision of the State Licensing Authority suspending a license for fourteen (14) days or less becomes final, the licensee may petition, before the operative date of the suspension, for permission to pay a fine in lieu of having the license suspended for all or part of the suspension period. Upon the receipt of the petition, the state authority, in its sole discretion, may stay the proposed suspension and cause any investigation to be made which it deems desirable and, in its sole discretion, may grant the petition if the State Licensing Authority is satisfied that:
(i) The public welfare will not be impaired by permitting the licensee to operate during the period set for suspension and that the payment of the fine will achieve the desired disciplinary purposes; and
(ii) The books and records of the licensee are kept in such a manner that the loss of sales that the licensee will suffer if the suspension takes effect can be determined with reasonable accuracy.
(b) A fine accepted under this subsection must be not less than Five Hundred Dollars ($500.00) nor more than One Hundred Thousand Dollars ($100,000.00).
(c) Payment of a fine pursuant to this subsection must be in the form of cash or a certified check or cashier's check made payable to the state or local licensing authority, whichever is appropriate.
(4) Upon payment of a fine authorized pursuant to subsection (3) of this section, the State Licensing Authority must enter its further order permanently staying the imposition of the suspension. Fines paid to the State Licensing Authority pursuant to subsection (3) of this section must be transmitted to the State Treasurer, who shall credit the same to the Marijuana Cash Fund.
(5) In connection with a petition pursuant to subsection (3) of this section, the authority of the State Licensing Authority is limited to the granting of such stays as are necessary for the authority to complete its investigation and make its findings and, if the authority makes such findings, to the granting of an order permanently staying the imposition of the entire suspension or that portion of the suspension not otherwise conditionally stayed.
(6) If the State Licensing Authority does not make the findings required in paragraph (a) of subsection (3) of this section and does not order the suspension permanently stayed, the suspension must go into effect on the operative date finally set by the State Licensing Authority.
(7) Before January 15 of each year, the State Licensing Authority shall compile a report of the preceding year's actions in which fines, suspensions or revocations were imposed by the State Licensing Authority. The State Licensing Authority shall file one (1) copy of the report with the Clerk of the House of Representatives and one (1) copy with the Secretary of the Senate.
SECTION 29. (1) The provisions of this section apply in addition to any criminal, civil or administrative penalties and in addition to any other penalties prescribed by this act or any rules promulgated pursuant to this act. Any provisions in this act related to law enforcement must be considered a cumulative right of the people in the enforcement of the criminal laws.
(2) Every licensee licensed under this act must be deemed, by virtue of applying for, holding or renewing the person's license, to have expressly consented to the procedures set forth in this section.
(3) A state or local agency is not required to cultivate or care for any retail marijuana or retail marijuana product belonging to or seized from a licensee. A state or local agency may not sell marijuana, retail or otherwise.
(4) If the State Licensing Authority issues a final agency order imposing a disciplinary action against a licensee pursuant to Section 28, then, in addition to any other remedies, the licensing authority's final agency order may specify that some or all of the licensee's marijuana or marijuana product is not retail marijuana or a retail marijuana product and is an illegal controlled substance. The order may specify further that the licensee loses any interest in any of the marijuana or marijuana product even if the marijuana or marijuana product previously qualified as retail marijuana or a retail marijuana product. The final agency order may direct the destruction of the marijuana and marijuana products, except as otherwise provided in subsections (5) and (6) of this section. The authorized destruction may include the incidental destruction of any containers, equipment, supplies and other property associated with the marijuana or marijuana product.
(5) Following the issuance of a final agency order by the State Licensing Authority against a licensee which directs destruction authorized by subsection (4) of this section, a licensee has fifteen (15) days within which to file a petition for stay of agency action with the Circuit Court of the First Judicial District of Hinds County, Mississippi. The licensee must serve the petition in accordance with the Mississippi Rules of Civil Procedure. The circuit court must rule promptly upon the petition and determine whether the licensee has a substantial likelihood of success on judicial review so as to warrant delay of the destruction authorized by subsection (4) of this section or whether other circumstances, including, but not limited to, the need for preservation of evidence, warrant delay of such destruction. If destruction is delayed pursuant to judicial order, the court must issue an order setting forth terms and conditions pursuant to which the licensee may maintain the retail marijuana and retail marijuana product pending judicial review and prohibiting the licensee from using or distributing the retail marijuana or retail marijuana product pending the review. The licensing authority may not carry out the destruction authorized by subsection (4) of this section until fifteen (15) days have passed without the filing of a petition for stay of agency action or until the court has issued an order denying a stay of agency action pursuant to this subsection.
(6) A district attorney shall notify the State Licensing Authority of an investigation of a retail marijuana establishment commenced by the district attorney's office. If the State Licensing Authority has received notification from a district attorney that an investigation is being conducted, the State Licensing Authority may not destroy any marijuana or marijuana products from the retail marijuana establishment until the destruction is approved by the district attorney.
(7) Before January 1, 2018, the State Licensing Authority shall promulgate rules governing the implementation of this section.
SECTION 30. (1) Each licensee shall keep a complete set of all records necessary to show fully the business transactions of the licensee, all of which must be open at all times during business hours for the inspection and examination by the State Licensing Authority or its duly authorized representatives. The State Licensing Authority may require any licensee to furnish such information as it considers necessary for the proper administration of this act and may require an audit to be made of the books of account and records on such occasions as it may consider necessary by an auditor to be selected by the State Licensing Authority. An auditor performing an audit pursuit to this subsection shall have access to all books and records of the licensee. The expense of an audit performed pursuit to this subsection must be paid by the licensee.
(2) The licensed premises, including any places of storage where retail marijuana or retail marijuana products are stored, cultivated, sold, dispensed or tested, is subject to inspection by the state or local jurisdictions and their investigators, during all business hours and other times of apparent activity, for the purpose of investigation. Access is required during business hours for examination of any inventory or books and records required to be kept by the licensees. When any part of the licensed premises consists of a locked area, upon demand to the licensee, the area must be made available for inspection without delay, and, upon request by authorized representatives of the state or local jurisdiction, the licensee must open the area for inspection.
(3) Each licensee shall retain all books and records necessary to show fully the business transactions of the licensee for a period of the current tax year and the three (3) immediately prior tax years.
SECTION 31. Decisions by the State Licensing Authority are subject to judicial review.
SECTION 32. (1) Except as otherwise provided in this act, it is unlawful for a person to consume retail marijuana or retail marijuana products in a licensed retail marijuana establishment, and it is unlawful for a retail marijuana licensee to allow retail marijuana or retail marijuana products to be consumed upon its licensed premises.
(2) It is unlawful for a person to:
(a) Buy, sell, transfer, give away or acquire retail marijuana or retail marijuana products except as allowed pursuant to this act; or
(b) Have an unreported financial interest or a direct interest in a license pursuant to this act; however, this paragraph does not apply to banks or savings and loan associations supervised and regulated by an agency of the state or federal government, or to FHA-approved mortgagees, or to stockholders, directors, or officers thereof.
(3) It is unlawful for a person licensed pursuant to this act:
(a) To be within a limited-access area unless the person's license badge is displayed as required by this act, except as provided in Section 30;
(b) To fail to designate areas of ingress and egress for limited-access areas and post signs in conspicuous locations as required by this act;
(c) To fail to report a transfer required by Section 16; or
(d) To fail to report the name of or a change in managers as required by Section 16.
(4) It is unlawful for any person licensed to sell retail marijuana or retail marijuana products pursuant to this act:
(a) To display any signs that are inconsistent with local laws or regulations;
(b) To use advertising material that is misleading, deceptive or false, or which is designed to appeal to minors;
(c) To provide public premises or a portion of public premises for the purpose of consumption of retail marijuana or retail marijuana products in any form;
(d) To have in possession or upon the licensed premises any marijuana that is not permitted to be sold by the licensee;
(e) To sell or permit the sale of retail marijuana or retail marijuana products to a person under twenty-one (21) years of age;
(f) To sell more than one-fourth (1/4) of an ounce of retail marijuana and more than one-fourth (1/4) of an ounce equivalent of a retail marijuana product during a single transaction to a nonresident of the state;
(g) To have on the licensed premises any retail marijuana, retail marijuana products or marijuana paraphernalia that shows evidence of the retail marijuana having been consumed or partially consumed;
(h) To distribute marijuana or marijuana products, with or without remuneration, directly to another person using a mobile distribution center; or
(i) To abandon a licensed premises or otherwise cease operation without notifying the state and local licensing authorities at least forty-eight (48) hours in advance and without accounting for and forfeiting to the State Licensing Authority for destruction all marijuana or products containing marijuana.
(5) In addition to any other penalties that may be imposed by law, a person who commits any act that is unlawful pursuant to this act or the rules authorized and adopted pursuant to this act commits a misdemeanor and, upon conviction, must be punished by a fine of not more than Five Hundred Dollars ($500.00), or by imprisonment in the county jail for not more than six (6) months, or by both fine and imprisonment, in the discretion of the court. Any person convicted of violating any of the provisions of this act must forfeit his license and may not engage in any business for which a license may be issued under this act.
SECTION 33. This act does not apply to or supersede any of the provisions of Section 41-29-136.
SECTION 34. Upon every person engaging or continuing within this state in the business of selling retail marijuana and retail marijuana products, the sales of which are legal under the provisions of Sections 1 through 33 of this act, there is levied, assessed and to be collected a tax equal to seven percent (7%) of the gross proceeds of the retail sales of the business. All sales at wholesale to retailers shall be taxed at the same rate as provided in this section for retail sales. In computing the tax on sales, a retailer may take credit for the amount of the tax paid to the wholesaler at the rates provided in this section and remit the difference to the Commissioner, provided adequate records and all invoices are maintained to substantiate the credit claimed.
SECTION 35. Section 41-29-125, Mississippi Code of 1972, is amended as follows:
41-29-125. (1) The State Board of Pharmacy may promulgate rules and regulations relating to the registration and control of the manufacture, distribution and dispensing of controlled substances within this state and the distribution and dispensing of controlled substances into this state from an out-of-state location.
(a) Every person who manufactures, distributes or dispenses any controlled substance within this state or who distributes or dispenses any controlled substance into this state from an out-of-state location, or who proposes to engage in the manufacture, distribution or dispensing of any controlled substance within this state or the distribution or dispensing of any controlled substance into this state from an out-of-state location, must obtain a registration issued by the State Board of Pharmacy, the State Board of Medical Licensure, the State Board of Dental Examiners, the Mississippi Board of Nursing or the Mississippi Board of Veterinary Medicine, as appropriate, in accordance with its rules and the law of this state. Such registration shall be obtained annually or biennially, as specified by the issuing board, and a reasonable fee may be charged by the issuing board for such registration.
(b) Persons registered by the State Board of Pharmacy, with the consent of the United States Drug Enforcement Administration and the State Board of Medical Licensure, the State Board of Dental Examiners, the Mississippi Board of Nursing or the Mississippi Board of Veterinary Medicine to manufacture, distribute, dispense or conduct research with controlled substances may possess, manufacture, distribute, dispense or conduct research with those substances to the extent authorized by their registration and in conformity with the other provisions of this article.
(c) The following persons need not register and may lawfully possess controlled substances under this article:
( * * *i) An agent or employee of any
registered manufacturer, distributor or dispenser of any controlled substance
if he is acting in the usual course of his business or employment;
( * * *ii) A common or contract carrier or
warehouse, or an employee thereof, whose possession of any controlled substance
is in the usual course of business or employment;
( * * *iii) An ultimate user or a person in
possession of any controlled substance pursuant to a valid prescription or in
lawful possession of a Schedule V substance as defined in Section 41-29-121.
(d) The State Board of Pharmacy may waive by rule the requirement for registration of certain manufacturers, distributors or dispensers if it finds it consistent with the public health and safety.
(e) A separate registration is required at each principal place of business or professional practice where an applicant within the state manufactures, distributes or dispenses controlled substances and for each principal place of business or professional practice located out-of-state from which controlled substances are distributed or dispensed into the state.
(f) The State Board of Pharmacy, the Mississippi Bureau of Narcotics, the State Board of Medical Licensure, the State Board of Dental Examiners, the Mississippi Board of Nursing and the Mississippi Board of Veterinary Medicine may inspect the establishment of a registrant or applicant for registration in accordance with the regulations of these agencies as approved by the board.
(2) Whenever a pharmacy ships, mails or delivers any Schedule II controlled substance listed in Section 41-29-115 to a private residence in this state, the pharmacy shall arrange with the entity that will actually deliver the controlled substance to a recipient in this state that the entity will: (a) deliver the controlled substance only to a person who is eighteen (18) years of age or older; and (b) obtain the signature of that person before delivering the controlled substance. The requirements of this subsection shall not apply to a pharmacy serving a nursing facility or to a pharmacy owned and/or operated by a hospital, nursing facility or clinic to which the general public does not have access to purchase pharmaceuticals on a retail basis.
(3) This section does not apply to any of the actions regarding the cultivation, manufacture, sale, distribution, dispensing and testing of retail marijuana and retail marijuana products which are lawful under the Mississippi Retail Marijuana Code.
SECTION 36. Section 41-29-127, Mississippi Code of 1972, is amended as follows:
41-29-127. (a) The State Board of Pharmacy shall register an applicant to manufacture or distribute controlled substances included in Sections 41-29-113 through 41-29-121 unless it determines that the issuance of that registration would be inconsistent with the public interest. In determining the public interest, the State Board of Pharmacy shall consider the following factors:
(1) Maintenance of effective controls against diversion of controlled substances into other than legitimate medical, scientific, or industrial channels;
(2) Compliance with applicable state and local law;
(3) Any convictions of the applicant under any federal and state laws relating to any controlled substance;
(4) Past experience in the manufacture or distribution of controlled substances and the existence in the applicant's establishment of effective controls against diversion;
(5) Furnishing by the applicant of false or fraudulent material in any application filed under this article;
(6) Suspension or revocation of the applicant's federal registration to manufacture, distribute, or dispense controlled substances as authorized by federal law; and
(7) Any other factors relevant to and consistent with the public health and safety.
(b) Registration under subsection (a) does not entitle a registrant to manufacture and distribute controlled substances in Schedule I or II, as set out in Sections 41-29-113 and 41-29-115, other than those specified in the registration.
(c) Practitioners must be registered to dispense any controlled substances or to conduct research with controlled substances in Schedules II through V, as set out in Sections 41-29-115 through 41-29-121, if they are authorized to dispense or conduct research under the law of this state. The State Board of Pharmacy need not require separate registration under this section for practitioners engaging in research with nonnarcotic controlled substances in the said Schedules II through V where the registrant is already registered therein in another capacity. Practitioners registered under federal law to conduct research with Schedule I substances, as set out in Section 41-29-113, may conduct research with Schedule I substances within this state upon furnishing the State Board of Health evidence of that federal registration.
(d) Compliance by manufacturers and distributors with the provisions of the federal law respecting registration (excluding fees) entitles them to be registered under this article.
(e) This section does not apply to any of the actions regarding the cultivation, manufacture, sale, distribution, dispensing and testing of retail marijuana and retail marijuana products which are lawful under the Mississippi Retail Marijuana Code.
SECTION 37. Section 41-29-136, Mississippi Code of 1972, is amended as follows:
41-29-136. (1) "CBD oil" means processed cannabis plant extract, oil or resin that contains more than fifteen percent (15%) cannabidiol, or a dilution of the resin that contains at least fifty (50) milligrams of cannabidiol per milliliter, but not more than one-half of one percent (0.5%) of tetrahydrocannabinol.
(2) (a) CBD oil may only be obtained on the order of a physician who is licensed to practice in Mississippi and administered to a patient by or under the direction or supervision of the physician.
(b) (i) The CBD oil must be obtained from or tested by the National Center for Natural Products Research at the University of Mississippi and dispensed by the Department of Pharmacy Services at the University of Mississippi Medical Center.
(ii) The patient or the patient's parent, guardian or custodian must execute a hold-harmless agreement that releases from liability the state and any division, agency, institution or employee thereof involved in the research, cultivation, processing, dispensing, prescribing or administration of CBD oil.
(c) The National Center for Natural Products Research at the University of Mississippi, the Department of Pharmacy Services at the University of Mississippi Medical Center and the Mississippi Agricultural and Forestry Experiment Station at Mississippi State University are the only entities authorized to produce or possess cannabidiol for research.
(3) (a) Research of CBD oil under this section must comply with the provisions of Section 41-29-125 regarding lawful possession of controlled substances, of Section 41-29-137 regarding record-keeping requirements relative to the dispensing, use or administration of controlled substances, and of Section 41-29-133 regarding inventory requirements, insofar as they are applicable.
(b) The National Center for Natural Products Research at the University of Mississippi, the Department of Pharmacy Services at the University of Mississippi Medical Center and the Mississippi Agricultural and Forestry Experiment Station at Mississippi State University are authorized to pursue any federal permits or waivers necessary to conduct the programs authorized under this section.
(4) (a) In a prosecution for
the unlawful possession of * * * marijuana under the laws of
this state, it is an affirmative and complete defense to prosecution that:
(i) The defendant suffered from a debilitating epileptic condition or related illness and the use or possession of CBD oil was pursuant to the order of a physician as authorized under this section; or
(ii) The defendant is the parent, guardian or custodian of an individual who suffered from a debilitating epileptic condition or related illness and the use or possession of CBD oil was pursuant to the order of a physician as authorized under this section.
(b) An agency of this state or a political subdivision thereof, including any law enforcement agency, may not initiate proceedings to remove a child from the home based solely upon the possession or use of CBD oil by the child or parent, guardian or custodian of the child as authorized under this section.
(c) An employee of the
state or any division, agency, institution thereof involved in the research,
cultivation, processing, dispensing, prescribing or administration of CBD oil
shall not be subject to prosecution for unlawful possession, use, distribution
or prescription of * * *
marijuana under the laws of this state for activities arising from or
related to the use of CBD oil in the treatment of individuals diagnosed with a
debilitating epileptic condition under this section.
(5) This section does not apply to any of the actions regarding the cultivation, manufacture, sale, distribution, dispensing and testing of retail marijuana and retail marijuana products which are lawful under the Mississippi Retail Marijuana Code.
( * * *6) This section shall be known as
"Harper Grace's Law."
( * * *7) This section shall stand repealed
from and after July 1, 2017.
SECTION 38. Section 41-29-137, Mississippi Code of 1972, is amended as follows:
41-29-137. (a) (1) Except when dispensed directly by a practitioner, other than a pharmacy, to an ultimate user, no controlled substance in Schedule II, as set out in Section 41-29-115, may be dispensed without the written valid prescription of a practitioner. A practitioner shall keep a record of all controlled substances in Schedule I, II and III administered, dispensed or professionally used by him otherwise than by prescription.
(2) In emergency situations, as defined by rule of the State Board of Pharmacy, Schedule II drugs may be dispensed upon the oral valid prescription of a practitioner, reduced promptly to writing and filed by the pharmacy. Prescriptions shall be retained in conformity with the requirements of Section 41-29-133. No prescription for a Schedule II substance may be refilled unless renewed by prescription issued by a licensed medical doctor.
(b) Except when dispensed directly by a practitioner, other than a pharmacy, to an ultimate user, a controlled substance included in Schedule III or IV, as set out in Sections 41-29-117 and 41-29-119, shall not be dispensed without a written or oral valid prescription of a practitioner. The prescription shall not be filled or refilled more than six (6) months after the date thereof or be refilled more than five (5) times, unless renewed by the practitioner.
(c) A controlled substance included in Schedule V, as set out in Section 41-29-121, shall not be distributed or dispensed other than for a medical purpose.
(d) An optometrist certified to prescribe and use therapeutic pharmaceutical agents under Sections 73-19-153 through 73-19-165 shall be authorized to prescribe oral analgesic controlled substances in Schedule IV or V, as pertains to treatment and management of eye disease by written prescription only.
(e) Administration by injection of any pharmaceutical product authorized in this section is expressly prohibited except when dispensed directly by a practitioner other than a pharmacy.
(f) (1) For the purposes of this article, Title 73, Chapter 21, and Title 73, Chapter 25, Mississippi Code of 1972, as it pertains to prescriptions for controlled substances, a "valid prescription" means a prescription that is issued for a legitimate medical purpose in the usual course of professional practice by:
(A) A practitioner who has conducted at least one (1) in-person medical evaluation of the patient; or
(B) A covering practitioner.
(2) (A) "In-person medical evaluation" means a medical evaluation that is conducted with the patient in the physical presence of the practitioner, without regard to whether portions of the evaluation are conducted by other health professionals.
(B) "Covering practitioner" means a practitioner who conducts a medical evaluation other than an in-person medical evaluation at the request of a practitioner who has conducted at least one (1) in-person medical evaluation of the patient or an evaluation of the patient through the practice of telemedicine within the previous twenty-four (24) months and who is temporarily unavailable to conduct the evaluation of the patient.
(3) A prescription for a controlled substance based solely on a consumer's completion of an online medical questionnaire is not a valid prescription.
(4) Nothing in this
subsection ( * * *f)
shall apply to:
(A) A prescription issued by a practitioner engaged in the practice of telemedicine as authorized under state or federal law; or
(B) The dispensing or selling of a controlled substance pursuant to practices as determined by the United States Attorney General by regulation.
(g) This section does not apply to any of the actions regarding the cultivation, manufacture, sale, distribution, dispensing and testing of retail marijuana and retail marijuana products which are lawful under the Mississippi Retail Marijuana Code.
SECTION 39. Section 41-29-139, Mississippi Code of 1972, is amended as follows:
41-29-139. (a) Transfer and possession with intent to transfer. Except as authorized by this article, it is unlawful for any person knowingly or intentionally:
(1) To sell, barter, transfer, manufacture, distribute, dispense or possess with intent to sell, barter, transfer, manufacture, distribute or dispense, a controlled substance; or
(2) To create, sell, barter, transfer, distribute, dispense or possess with intent to create, sell, barter, transfer, distribute or dispense, a counterfeit substance.
(b) Punishment for transfer and possession with intent to transfer. Except as otherwise provided in Section 41-29-142, any person who violates subsection (a) of this section shall be, if convicted, sentenced as follows:
(1) For controlled substances classified in Schedule I or II, as set out in Sections 41-29-113 and 41-29-115, other than marijuana or synthetic cannabinoids:
(A) If less than two (2) grams or ten (10) dosage units, by imprisonment for not more than eight (8) years or a fine of not more than Fifty Thousand Dollars ($50,000.00), or both.
(B) If two (2) or more grams or ten (10) or more dosage units, but less than ten (10) grams or twenty (20) dosage units, by imprisonment for not less than three (3) years nor more than twenty (20) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both.
(C) If ten (10) or more grams or twenty (20) or more dosage units, but less than thirty (30) grams or forty (40) dosage units, by imprisonment for not less than five (5) years nor more than thirty (30) years or a fine of not more than Five Hundred Thousand Dollars ($500,000.00), or both.
(2) (A) For marijuana:
1. If thirty (30) grams or less, by imprisonment for not more than three (3) years or a fine of not more than Three Thousand Dollars ($3,000.00), or both;
2. If more than thirty (30) grams but less than two hundred fifty (250) grams, by imprisonment for not more than five (5) years or a fine of not more than Five Thousand Dollars ($5,000.00), or both;
3. If two hundred fifty (250) or more grams but less than five hundred (500) grams, by imprisonment for not less than three (3) years nor more than ten (10) years or a fine of not more than Fifteen Thousand Dollars ($15,000.00), or both;
4. If five hundred (500) or more grams but less than one (1) kilogram, by imprisonment for not less than five (5) years nor more than twenty (20) years or a fine of not more than Twenty Thousand Dollars ($20,000.00), or both.
(B) For synthetic cannabinoids:
1. If ten (10) grams or less, by imprisonment for not more than three (3) years or a fine of not more than Three Thousand Dollars ($3,000.00), or both;
2. If more than ten (10) grams but less than twenty (20) grams, by imprisonment for not more than five (5) years or a fine of not more than Five Thousand Dollars ($5,000.00), or both;
3. If twenty (20) or more grams but less than forty (40) grams, by imprisonment for not less than three (3) years nor more than ten (10) years or a fine of not more than Fifteen Thousand Dollars ($15,000.00), or both;
4. If forty (40) or more grams but less than two hundred (200) grams, by imprisonment for not less than five (5) years nor more than twenty (20) years or a fine of not more than Twenty Thousand Dollars ($20,000.00), or both.
(3) For controlled substances classified in Schedules III and IV, as set out in Sections 41-29-117 and 41-29-119:
(A) If less than two (2) grams or ten (10) dosage units, by imprisonment for not more than five (5) years or a fine of not more than Five Thousand Dollars ($5,000.00), or both;
(B) If two (2) or more grams or ten (10) or more dosage units, but less than ten (10) grams or twenty (20) dosage units, by imprisonment for not more than eight (8) years or a fine of not more than Fifty Thousand Dollars ($50,000.00), or both;
(C) If ten (10) or more grams or twenty (20) or more dosage units, but less than thirty (30) grams or forty (40) dosage units, by imprisonment for not more than fifteen (15) years or a fine of not more than One Hundred Thousand Dollars ($100,000.00), or both;
(D) If thirty (30) or more grams or forty (40) or more dosage units, but less than five hundred (500) grams or two thousand five hundred (2,500) dosage units, by imprisonment for not more than twenty (20) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both.
(4) For controlled substances classified in Schedule V, as set out in Section 41-29-121:
(A) If less than two (2) grams or ten (10) dosage units, by imprisonment for not more than one (1) year or a fine of not more than Five Thousand Dollars ($5,000.00), or both;
(B) If two (2) or more grams or ten (10) or more dosage units, but less than ten (10) grams or twenty (20) dosage units, by imprisonment for not more than five (5) years or a fine of not more than Ten Thousand Dollars ($10,000.00), or both;
(C) If ten (10) or more grams or twenty (20) or more dosage units, but less than thirty (30) grams or forty (40) dosage units, by imprisonment for not more than ten (10) years or a fine of not more than Twenty Thousand Dollars ($20,000.00), or both;
(D) For thirty (30) or more grams or forty (40) or more dosage units, but less than five hundred (500) grams or two thousand five hundred (2,500) dosage units, by imprisonment for not more than fifteen (15) years or a fine of not more than Fifty Thousand Dollars ($50,000.00), or both.
(c) Simple possession. Except as otherwise provided under subsection (i) of this section for lawful purchases made pursuant to the Mississippi Retail Marijuana Code, it is unlawful for any person knowingly or intentionally to possess any controlled substance unless the substance was obtained directly from, or pursuant to, a valid prescription or order of a practitioner while acting in the course of his professional practice, or except as otherwise authorized by this article. The penalties for any violation of this subsection (c) with respect to a controlled substance classified in Schedules I, II, III, IV or V, as set out in Section 41-29-113, 41-29-115, 41-29-117, 41-29-119 or 41-29-121, including marijuana or synthetic cannabinoids, shall be based on dosage unit as defined herein or the weight of the controlled substance as set forth herein as appropriate:
"Dosage unit (d.u.)" means a tablet or capsule, or in the case of a liquid solution, one (1) milliliter. In the case of lysergic acid diethylamide (LSD) the term, "dosage unit" means a stamp, square, dot, microdot, tablet or capsule of a controlled substance.
For any controlled substance that does not fall within the definition of the term "dosage unit," the penalties shall be based upon the weight of the controlled substance.
The weight set forth refers to the entire weight of any mixture or substance containing a detectable amount of the controlled substance.
If a mixture or substance contains more than one (1) controlled substance, the weight of the mixture or substance is assigned to the controlled substance that results in the greater punishment.
A person shall be charged and sentenced as follows for a violation of this subsection with respect to:
(1) A controlled substance classified in Schedule I or II, except marijuana and synthetic cannabinoids:
(A) If less than one-tenth (0.1) gram or two (2) dosage units, the violation is a misdemeanor and punishable by imprisonment for not more than one (1) year or a fine of not more than One Thousand Dollars ($1,000.00), or both.
(B) If one-tenth (0.1) gram or more or two (2) or more dosage units, but less than two (2) grams or ten (10) dosage units, by imprisonment for not more than three (3) years or a fine of not more than Fifty Thousand Dollars ($50,000.00), or both.
(C) If two (2) or more grams or ten (10) or more dosage units, but less than ten (10) grams or twenty (20) dosage units, by imprisonment for not more than eight (8) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both.
(D) If ten (10) or more grams or twenty (20) or more dosage units, but less than thirty (30) grams or forty (40) dosage units, by imprisonment for not less than three (3) years nor more than twenty (20) years or a fine of not more than Five Hundred Thousand Dollars ($500,000.00), or both.
(2) (A) Marijuana and synthetic cannabinoids:
1. If thirty (30) grams or less of marijuana or ten (10) grams or less of synthetic cannabinoids, by a fine of not less than One Hundred Dollars ($100.00) nor more than Two Hundred Fifty Dollars ($250.00). The provisions of this paragraph (2)(A) may be enforceable by summons if the offender provides proof of identity satisfactory to the arresting officer and gives written promise to appear in court satisfactory to the arresting officer, as directed by the summons. A second conviction under this section within two (2) years is a misdemeanor punishable by a fine of Two Hundred Fifty Dollars ($250.00), not more than sixty (60) days in the county jail, and mandatory participation in a drug education program approved by the Division of Alcohol and Drug Abuse of the State Department of Mental Health, unless the court enters a written finding that a drug education program is inappropriate. A third or subsequent conviction under this paragraph (2)(A) within two (2) years is a misdemeanor punishable by a fine of not less than Two Hundred Fifty Dollars ($250.00) nor more than One Thousand Dollars ($1,000.00) and confinement for not more than six (6) months in the county jail.
Upon a first or second conviction under this paragraph (2)(A), the courts shall forward a report of the conviction to the Mississippi Bureau of Narcotics which shall make and maintain a private, nonpublic record for a period not to exceed two (2) years from the date of conviction. The private, nonpublic record shall be solely for the use of the courts in determining the penalties which attach upon conviction under this paragraph (2)(A) and shall not constitute a criminal record for the purpose of private or administrative inquiry and the record of each conviction shall be expunged at the end of the period of two (2) years following the date of such conviction;
2. Additionally, a person who is the operator of a motor vehicle, who possesses on his person or knowingly keeps or allows to be kept in a motor vehicle within the area of the vehicle normally occupied by the driver or passengers, more than one (1) gram, but not more than thirty (30) grams of marijuana or not more than ten (10) grams of synthetic cannabinoids is guilty of a misdemeanor and, upon conviction, may be fined not more than One Thousand Dollars ($1,000.00) or confined for not more than ninety (90) days in the county jail, or both. For the purposes of this subsection, such area of the vehicle shall not include the trunk of the motor vehicle or the areas not normally occupied by the driver or passengers if the vehicle is not equipped with a trunk. A utility or glove compartment shall be deemed to be within the area occupied by the driver and passengers;
(B) Marijuana:
1. If more than thirty (30) grams but less than two hundred fifty (250) grams, by a fine of not more than One Thousand Dollars ($1,000.00), or confinement in the county jail for not more than one (1) year, or both; or by a fine of not more than Three Thousand Dollars ($3,000.00), or imprisonment in the custody of the Department of Corrections for not more than three (3) years, or both;
2. If two hundred fifty (250) or more grams but less than five hundred (500) grams, by imprisonment for not less than two (2) years nor more than eight (8) years or by a fine of not more than Fifty Thousand Dollars ($50,000.00), or both;
3. If five hundred (500) or more grams but less than one (1) kilogram, by imprisonment for not less than four (4) years nor more than sixteen (16) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both;
4. If one (1) kilogram or more but less than five (5) kilograms, by imprisonment for not less than six (6) years nor more than twenty-four (24) years or a fine of not more than Five Hundred Thousand Dollars ($500,000.00), or both;
5. If five (5) kilograms or more, by imprisonment for not less than ten (10) years nor more than thirty (30) years or a fine of not more than One Million Dollars ($1,000,000.00), or both.
(C) Synthetic cannabinoids:
1. If more than ten (10) grams but less than twenty (20) grams, by a fine of not more than One Thousand Dollars ($1,000.00), or confinement in the county jail for not more than one (1) year, or both; or by a fine of not more than Three Thousand Dollars ($3,000.00), or imprisonment in the custody of the Department of Corrections for not more than three (3) years, or both;
2. If twenty (20) or more grams but less than forty (40) grams, by imprisonment for not less than two (2) years nor more than eight (8) years or by a fine of not more than Fifty Thousand Dollars ($50,000.00), or both;
3. If forty (40) or more grams but less than two hundred (200) grams, by imprisonment for not less than four (4) years nor more than sixteen (16) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both;
4. If two hundred (200) or more grams, by imprisonment for not less than six (6) years nor more than twenty-four (24) years or a fine of not more than Five Hundred Thousand Dollars ($500,000.00), or both.
(3) A controlled substance classified in Schedule III, IV or V as set out in Sections 41-29-117 through 41-29-121, upon conviction, may be punished as follows:
(A) If less than fifty (50) grams or less than one hundred (100) dosage units, the offense is a misdemeanor and punishable by not more than one (1) year or a fine of not more than One Thousand Dollars ($1,000.00), or both.
(B) If fifty (50) or more grams or one hundred (100) or more dosage units, but less than one hundred fifty (150) grams or five hundred (500) dosage units, by imprisonment for not less than one (1) year nor more than four (4) years or a fine of not more than Ten Thousand Dollars ($10,000.00), or both.
(C) If one hundred fifty (150) or more grams or five hundred (500) or more dosage units, but less than three hundred (300) grams or one thousand (1,000) dosage units, by imprisonment for not less than two (2) years nor more than eight (8) years or a fine of not more than Fifty Thousand Dollars ($50,000.00), or both.
(D) If three hundred (300) or more grams or one thousand (1,000) or more dosage units, but less than five hundred (500) grams or two thousand five hundred (2,500) dosage units, by imprisonment for not less than four (4) years nor more than sixteen (16) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both.
(d) Paraphernalia. (1) Except as otherwise provided for under subsection (i) of this section for lawful purchases made pursuant to the Mississippi Retail Marijuana Code, it is unlawful for a person who is not authorized by the State Board of Medical Licensure, State Board of Pharmacy, or other lawful authority to use, or to possess with intent to use, paraphernalia to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale or otherwise introduce into the human body a controlled substance in violation of the Uniform Controlled Substances Law. Any person who violates this subsection (d)(1) is guilty of a misdemeanor and, upon conviction, may be confined in the county jail for not more than six (6) months, or fined not more than Five Hundred Dollars ($500.00), or both; however, no person shall be charged with a violation of this subsection when such person is also charged with the possession of thirty (30) grams or less of marijuana under subsection (c)(2)(A) of this section.
(2) It is unlawful for any person to deliver, sell, possess with intent to deliver or sell, or manufacture with intent to deliver or sell, paraphernalia, knowing, or under circumstances where one reasonably should know, that it will be used to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale, or otherwise introduce into the human body a controlled substance in violation of the Uniform Controlled Substances Law. Except as provided in subsection (d)(3), a person who violates this subsection (d)(2) is guilty of a misdemeanor and, upon conviction, may be confined in the county jail for not more than six (6) months, or fined not more than Five Hundred Dollars ($500.00), or both.
(3) Any person eighteen (18) years of age or over who violates subsection (d)(2) of this section by delivering or selling paraphernalia to a person under eighteen (18) years of age who is at least three (3) years his junior is guilty of a misdemeanor and, upon conviction, may be confined in the county jail for not more than one (1) year, or fined not more than One Thousand Dollars ($1,000.00), or both.
(4) It is unlawful for any person to place in any newspaper, magazine, handbill, or other publication any advertisement, knowing, or under circumstances where one reasonably should know, that the purpose of the advertisement, in whole or in part, is to promote the sale of objects designed or intended for use as paraphernalia. Any person who violates this subsection is guilty of a misdemeanor and, upon conviction, may be confined in the county jail for not more than six (6) months, or fined not more than Five Hundred Dollars ($500.00), or both.
(e) It shall be unlawful for any physician practicing medicine in this state to prescribe, dispense or administer any amphetamine or amphetamine-like anorectics and/or central nervous system stimulants classified in Schedule II, pursuant to Section 41-29-115, for the exclusive treatment of obesity, weight control or weight loss. Any person who violates this subsection, upon conviction, is guilty of a misdemeanor and may be confined for a period not to exceed six (6) months, or fined not more than One Thousand Dollars ($1,000.00), or both.
(f) Trafficking. (1) Any person trafficking in controlled substances shall be guilty of a felony and, upon conviction, shall be imprisoned for a term of not less than ten (10) years nor more than forty (40) years and shall be fined not less than Five Thousand Dollars ($5,000.00) nor more than One Million Dollars ($1,000,000.00). The ten-year mandatory sentence shall not be reduced or suspended. The person shall not be eligible for probation or parole, the provisions of Sections 41-29-149, 47-5-139, 47-7-3 and 47-7-33, to the contrary notwithstanding.
(2) "Trafficking in controlled substances" as used herein means:
(A) A violation of subsection (a) of this section involving thirty (30) or more grams or forty (40) or more dosage units of a Schedule I or II controlled substance except marijuana and synthetic cannabinoids;
(B) A violation of subsection (a) of this section involving five hundred (500) or more grams or two thousand five hundred (2,500) or more dosage units of a Schedule III, IV or V controlled substance;
(C) A violation of subsection (c) of this section involving thirty (30) or more grams or forty (40) or more dosage units of a Schedule I or II controlled substance except marijuana and synthetic cannabinoids;
(D) A violation of subsection (c) of this section involving five hundred (500) or more grams or two thousand five hundred (2,500) or more dosage units of a Schedule III, IV or V controlled substance; or
(E) A violation of subsection (a) of this section involving one (1) kilogram or more of marijuana or two hundred (200) grams or more of synthetic cannabinoids.
(g) Aggravated trafficking. Any person trafficking in Schedule I or II controlled substances, except marijuana and synthetic cannabinoids, of two hundred (200) grams or more shall be guilty of aggravated trafficking and, upon conviction, shall be sentenced to a term of not less than twenty-five (25) years nor more than life in prison and shall be fined not less than Five Thousand Dollars ($5,000.00) nor more than One Million Dollars ($1,000,000.00). The twenty-five-year sentence shall be a mandatory sentence and shall not be reduced or suspended. The person shall not be eligible for probation or parole, the provisions of Sections 41-29-149, 47-5-139, 47-7-3 and 47-7-33, to the contrary notwithstanding.
(h) Sentence mitigation. (1) Notwithstanding any provision of this section, a person who has been convicted of an offense under this section that requires the judge to impose a prison sentence which cannot be suspended or reduced and is ineligible for probation or parole may, at the discretion of the court, receive a sentence of imprisonment that is no less than twenty-five percent (25%) of the sentence prescribed by the applicable statute. In considering whether to apply the departure from the sentence prescribed, the court shall conclude that:
(A) The offender was not a leader of the criminal enterprise;
(B) The offender did not use violence or a weapon during the crime;
(C) The offense did not result in a death or serious bodily injury of a person not a party to the criminal enterprise; and
(D) The interests of justice are not served by the imposition of the prescribed mandatory sentence.
The court may also consider whether information and assistance were furnished to a law enforcement agency, or its designee, which, in the opinion of the trial judge, objectively should or would have aided in the arrest or prosecution of others who violate this subsection. The accused shall have adequate opportunity to develop and make a record of all information and assistance so furnished.
(2) If the court reduces the prescribed sentence pursuant to this subsection, it must specify on the record the circumstances warranting the departure.
(i) This section does not apply to any of the actions regarding the cultivation, manufacture, sale, distribution, dispensing and testing of retail marijuana and retail marijuana products which are lawful under the Mississippi Retail Marijuana Code.
SECTION 40. Section 41-29-141, Mississippi Code of 1972, is amended as follows:
41-29-141. It is unlawful for any person:
(1) Who is subject to Section 41-29-125 to distribute or dispense a controlled substance in violation of Section 41-29-137;
(2) Who is a registrant under Section 41-29-125 to manufacture a controlled substance not authorized by his registration, or to distribute or dispense a controlled substance not authorized by his registration to another registrant or other authorized person;
(3) To refuse or fail to make, keep or furnish any record, notification, order form, statement, invoice or information required under this article;
(4) To refuse a lawful entry into any premises for any inspection authorized by this article; or
(5) Knowingly to keep or maintain any store, shop, warehouse, dwelling, building, vehicle, boat, aircraft, or other structure or place, which is resorted to by persons using controlled substances in violation of this article for the purpose of using these substances, or which is used for keeping or selling them in violation of this article.
Any person who violates this section shall, with respect to such violation, be subject to a civil penalty payable to the State of Mississippi of not more than Twenty-five Thousand Dollars ($25,000.00).
In addition to the civil penalty provided in the preceding paragraph, any person who knowingly or intentionally violates this section shall be guilty of a crime and upon conviction thereof may be confined for a period of not more than one (1) year or fined not more than One Thousand Dollars ($1,000.00), or both.
This section does not apply to any of the actions regarding the cultivation, manufacture, sale, distribution, dispensing and testing of retail marijuana and retail marijuana products which are lawful under the Mississippi Retail Marijuana Code.
SECTION 41. Section 41-29-143, Mississippi Code of 1972, is amended as follows:
41-29-143. It is unlawful for any person knowingly or intentionally:
(1) To distribute as a registrant a controlled substance classified in Schedule I or II, as set out in Sections 41-29-113 and 41-29-115, except pursuant to an order form as required by Section 41-29-135;
(2) To use in the
course of the manufacture or distribution of a controlled substance a
registration number which is fictitious, revoked, suspended, or issued to
another person * * *;
(3) To furnish false or fraudulent material information in, or omit any material information from, any application, report, or other document required to be kept or filed under this article, or any record required to be kept by this article; or
(4) To make, distribute, or possess any punch, die, plate, stone, or other thing designed to print, imprint, or reproduce the trademark, trade name, or other identifying mark, imprint or device of another or any likeness of any of the foregoing upon any drug or container or labeling thereof so as to render the drug a counterfeit substance.
Any person who violates this section is guilty of a crime and, upon conviction, may be confined for not more than one (1) year or fined not more than One Thousand Dollars ($1,000.00) or both.
This section does not apply to any of the actions regarding the cultivation, manufacture, sale, distribution, dispensing and testing of retail marijuana and retail marijuana products which are lawful under the Mississippi Retail Marijuana Code.
SECTION 42. Section 73-25-29, Mississippi Code of 1972, is brought forward as follows:
73-25-29. The grounds for the nonissuance, suspension, revocation or restriction of a license or the denial of reinstatement or renewal of a license are:
(1) Habitual personal use of narcotic drugs, or any other drug having addiction-forming or addiction-sustaining liability.
(2) Habitual use of intoxicating liquors, or any beverage, to an extent which affects professional competency.
(3) Administering, dispensing or prescribing any narcotic drug, or any other drug having addiction-forming or addiction-sustaining liability otherwise than in the course of legitimate professional practice.
(4) Conviction of violation of any federal or state law regulating the possession, distribution or use of any narcotic drug or any drug considered a controlled substance under state or federal law, a certified copy of the conviction order or judgment rendered by the trial court being prima facie evidence thereof, notwithstanding the pendency of any appeal.
(5) Procuring, or attempting to procure, or aiding in, an abortion that is not medically indicated.
(6) Conviction of a felony or misdemeanor involving moral turpitude, a certified copy of the conviction order or judgment rendered by the trial court being prima facie evidence thereof, notwithstanding the pendency of any appeal.
(7) Obtaining or attempting to obtain a license by fraud or deception.
(8) Unprofessional conduct, which includes, but is not limited to:
(a) Practicing medicine under a false or assumed name or impersonating another practitioner, living or dead.
(b) Knowingly performing any act which in any way assists an unlicensed person to practice medicine.
(c) Making or willfully causing to be made any flamboyant claims concerning the licensee's professional excellence.
(d) Being guilty of any dishonorable or unethical conduct likely to deceive, defraud or harm the public.
(e) Obtaining a fee as personal compensation or gain from a person on fraudulent representation of a disease or injury condition generally considered incurable by competent medical authority in the light of current scientific knowledge and practice can be cured or offering, undertaking, attempting or agreeing to cure or treat the same by a secret method, which he refuses to divulge to the board upon request.
(f) Use of any false, fraudulent or forged statement or document, or the use of any fraudulent, deceitful, dishonest or immoral practice in connection with any of the licensing requirements, including the signing in his professional capacity any certificate that is known to be false at the time he makes or signs such certificate.
(g) Failing to identify a physician's school of practice in all professional uses of his name by use of his earned degree or a description of his school of practice.
(9) The refusal of a licensing authority of another state or jurisdiction to issue or renew a license, permit or certificate to practice medicine in that jurisdiction or the revocation, suspension or other restriction imposed on a license, permit or certificate issued by such licensing authority which prevents or restricts practice in that jurisdiction, a certified copy of the disciplinary order or action taken by the other state or jurisdiction being prima facie evidence thereof, notwithstanding the pendency of any appeal.
(10) Surrender of a license or authorization to practice medicine in another state or jurisdiction or surrender of membership on any medical staff or in any medical or professional association or society while under disciplinary investigation by any of those authorities or bodies for acts or conduct similar to acts or conduct which would constitute grounds for action as defined in this section.
(11) Final sanctions imposed by the United States Department of Health and Human Services, Office of Inspector General or any successor federal agency or office, based upon a finding of incompetency, gross misconduct or failure to meet professionally recognized standards of health care; a certified copy of the notice of final sanction being prima facie evidence thereof. As used in this paragraph, the term "final sanction" means the written notice to a physician from the United States Department of Health and Human Services, Officer of Inspector General or any successor federal agency or office, which implements the exclusion.
(12) Failure to furnish the board, its investigators or representatives information legally requested by the board.
(13) Violation of any provision(s) of the Medical Practice Act or the rules and regulations of the board or of any order, stipulation or agreement with the board.
(14) Violation(s) of the provisions of Sections 41-121-1 through 41-121-9 relating to deceptive advertisement by health care practitioners.
(15) Performing or inducing an abortion on a woman in violation of any provision of Sections 41-41-131 through 41-41-145.
In addition to the grounds specified above, the board shall be authorized to suspend the license of any licensee for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a license for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a license suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a license suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be. If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control.
SECTION 43. Section 34 of this act shall be codified as a new section in Chapter 65, Title 27, Mississippi Code of 1972.
SECTION 44. This act shall take effect and be in force from and after July 1, 2017.
