Medical Marihuana: What You Need to Know. Shelly Edgerton, Director, Chief Data Systems Officer, Licensing & Regulatory Affairs

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Medical Marihuana: What You Need to Know Shelly Edgerton, Director, Chief Data Systems Officer, Licensing & Regulatory Affairs Stephen Postema, City Attorney, Ann Arbor Andrew Brisbo, Licensing Director, Bureau of Professional Licensin CAPITAL CONFERENCE March 21-22, 2017 Lansing Center, Lansing

Medical Marihuana Regulation Facilities Licensing, Tracking & Regulatory Responsibilities Presentation to the MI Municipal League Capital Conference 3/22/2017 Shelly Edgerton, LARA Director 2

Background Medical Marihuana Facilities Licensing Act & In September 2016, the Michigan Legislature passed and the Governor subsequently signed into law three bills (House Bills 4209, 4827 and 4210, being Public Acts 281-283 respectively) that will create a regulatory framework for medical marihuana facilities. This establishes a support structure for medical marihuana provisioning centers, growers, processors, secure transporters, and safety compliance facilities. It also creates a statewide monitoring system for the tracking, inventory, and verification of medical marihuana and allows for the manufacture and use of marihuana-infused products. This regulatory framework must be implemented by December 15, 2017. 3

IT Infrastructure Medical Marihuana Facilities Licensing Act & Statewide Monitoring System System for tracking, inventory, and verification of medical marihuana. System will allow for verification of patient status as current and active. Vendor spotlight held 12/6/2016-12/8/2016. RFP posted to Buy4Michigan on 1/30/2017; bids submitted by 3/2/2017. Currently evaluating bids. Implementation scheduled to begin in early May. Licensing System Customer portal and backend system for applications, renewals, fee assessments, inspections, investigations, compliance, and license verification. LARA will leverage an existing enterprise solution being utilized by the Bureau of Construction Codes, Bureau of Fire Services, and Bureau of Professional Licensing. System requirements drafted and Statement of Work in progress. Implementation scheduled to begin in mid-april. 4

LARA Regulatory Responsibilities Granting/denying licenses in a reasonable order. Good moral character and financial background checks for applicants, including all direct/indirect owners, beneficiaries, shareholders, officers, directors, partners, members and managers. Statewide prelicensure and routine facility compliance inspections and audits. Collecting fees and fines. Statewide administrative complaint investigations. Administrative hearings. Disciplinary compliance monitoring. Board and Advisory Panel support and administrative functions. Customer service. Conducting public meetings. Annual renewals, regulatory assessment collections, and financial statement reviews. Key performance indicator analytics. IT system support and maintenance. 5

Medical Marihuana Licensing Board Members 5 members, appointed by the Governor (with input from the Senate Majority Leader and the Speaker of the House), to administer the Act. Members have not been appointed. Responsibilities Issuing licenses, revoking/suspending licenses, levying fines, and investigating individuals who are applying for licensure or complaints received about someone who holds a license. 6

Medical Marihuana Advisory Panel Members State agencies LARA, MSP, AG, MDARD, DHHS. Locals townships, cities and villages, counties, sheriffs, local police. Licensees growers, processors, provisioning centers, safety compliance facilities, secure transporters, physician, registered patient, or primary caregiver. Responsibilities Public meetings at least 2x per year. Make recommendations to the board on rule promulgation. As requested by board or department, make recommendations on administration, implementation, and enforcement. 7

LARA Implementation Meeting with stakeholders. Reviewing best practices in other states. Evaluating RFPs on seed to sale system. Initiating implementation of the licensing IT system. Developing preliminary language for emergency administrative rules for the state board s consideration. Researching potential external resources and partnerships for specialized processes: grow facility inspections, processor inspections (food safety), criminal and financial background investigations. 8

Budget State Budget Office Analysis, Medical Marihuana Regulatory and Licensing Framework, February 8, 2017 9

Budget State Budget Office Analysis, Medical Marihuana Regulatory and Licensing Framework, February 8, 2017 10

Budget State Budget Office Analysis, Medical Marihuana Regulatory and Licensing Framework, February 8, 2017 11

For additional information and to sign up for updates please visit: http://www.michigan.gov/medicalmarihuana Contact: Shelly Edgerton, LARA Director, 517.241.7124 edgertons1@michigan.gov Andrew Brisbo, BPL Licensing Director, 517.241.9220 brisboa@michigan.gov 12

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