SB386 HFA Pushkin and others 4-3

Delegates Pushkin, Hornbuckle, Byrd, Hill, McGeehan, Lane and Robinson move to amend the bill on page 2, following the enacting clause, by striking out the remainder of the bill and inserting in lieu thereof, the following:

            “That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §16-8A-1, §16-8A-2, §16-8A-3, §16-8A-4, §16-8A-5, §16-8A-6, §16-8A-7, §16-8A-8, §16-8A-9, §16-8A-10, §16-8A-11, §16-8A-12, §16-8A-13, §16-8A-14, §16-8A-15, §16-8A-16, §16-8A-17, §16-8A-18, and §16-8A-19, all to read as follows:

ARTICLE 8A.  THE Patient Freedom ACT.

§16-8A-1.  Definitions.

As used in this article, unless a different meaning appears from the context:

 (1) “Bona fide practitioner-patient relationship” means:

(A) a practitioner and patient have a treatment or consulting relationship, during the course of which the practitioner has completed an assessment of the patient's medical history and current medical condition, including an appropriate examination;

(B) the practitioner has consulted with the patient with respect to the patient's debilitating medical condition; and

(C) the practitioner is available to or offers to provide follow-up care and treatment to the  patient;

(2) “Caregiver” means:

(A) A person who has agreed to assist with a qualifying patient’s medical use of cannabis; and

(B) For a qualifying patient under the age of eighteen years, a parent or legal guardian.

(3) “Certifying physician” means an individual who:

(A) Has an active, unrestricted license to practice medicine that was issued by the West Virginia Board of Medicine or the West Virginia Board of Osteopathic Medicine;

(B) Is in good standing with the West Virginia Board of Medicine or the West Virginia Board of Osteopathic Medicine, whichever is applicable;

(C) Has a valid and unencumbered authority to prescribe controlled substances; and

(D) Is registered with the commission to make cannabis available to patients for medical use in accordance with regulations adopted by the commission;

(4) “Commission” means the West Virginia Medical Cannabis Commission established pursuant to this article;

(5) “Dispensary” means an entity licensed under this article that acquires, possesses, processes, transfers, transports, sells, distributes, dispenses, or administers cannabis, products containing cannabis, related supplies, related products containing cannabis including food, tinctures, aerosols, oils, or ointments, or educational materials for use by a qualifying patient or caregiver;

(6) “Dispensary agent” means an owner, a member, an employee, a volunteer, an officer, or a director of a dispensary;

(7) “Fund” means the West Virginia Medical Cannabis Commission Fund established pursuant to this article.

(8) “Grower” means an entity licensed under this article that cultivates, manufactures, packages, and is authorized by the commission to provide cannabis to a qualifying processor, dispensary, or independent testing laboratory;

(9) “Independent testing laboratory” means a facility, entity, or site that offers or performs tests related to the inspection and testing of cannabis and products containing cannabis;

(10) “Mature cannabis plant” means a cannabis plant that has flowered and has buds that may be observed by visual examination;

(11) “Medical cannabis” means 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 that is lawfully sold pursuant to this article.

(12) “Medical cannabis grower agent” means an owner, an employee, a volunteer, an officer, or a director of a grower;

(13) “Medical cannabis processor”  or “processor” means an entity that transforms medical cannabis into another product or extract; and packages and labels medical cannabis products;

(14) “Processor agent” means an owner, member, employee, volunteer, officer, or director of a processor;

(15) “Qualifying patient” means an individual who has been provided with a written certification by a certifying physician in accordance with a bona fide physician–patient relationship; and if under the age of eighteen years, has a caregiver;

(16) “Written certification” means a certification that is written on tamper-resistant, non-copyable paper and issued by a certifying physician to a qualifying patient with whom the physician has a bona fide physician–patient relationship and includes a written statement certifying that, in the physician’s professional opinion, after having completed an assessment of the patient’s medical history and current medical condition, the patient has a condition:

(A) That meets the inclusion criteria and does not meet the exclusion criteria of the certifying physician’s application; and

(B) For which the potential benefits of the medical use of cannabis would likely outweigh the health risks for the patient.

§16-8A-2. West Virginia Medical Cannabis Commission.

(a) There is hereby created the West Virginia Medical Cannabis Commission.

(b) The commission is an independent commission that functions within the Department of Health and Human Resources.

(c) The purpose of the commission is to develop policies, procedures, guidelines, and rules to implement programs and to regulate and enforce all activities associated with making medical cannabis available to qualifying patients in a safe and effective manner.

 (d) The commission shall employ an executive director and employ persons necessary to administer and enforce the requirements of this article and rules promulgated thereunder. The executive director shall have enforcement authority and may delegate lawful enforcement duties to employees of the commission.

(e) The commission shall develop identification cards for qualifying patients and caregivers, and shall provide identification cards to each authorized person. The cards shall ensure identification cards may not be tampered with, duplicated, or altered.  Only persons who are residents of this state are eligible to be designated as qualifying patients;

(f) The commission shall develop procedures to distribute and track identification cards.

(g) The commission shall develop and maintain a website that provides information on how an individual can obtain medical cannabis in the state; and provides contact information for licensed dispensaries.

(h)  All licensees must be residents of this state and the commission may not issue more than one license to any person or entity for any activity authorized pursuant to this article.

§16-8A-3.  Makeup of commission authorization to charge fees and creation of the West Virginia Medical Cannabis Commission Fund.

(a) The commission shall consist of the following members:

(1) The Secretary of the Department of Health and Human Resources, or the secretary’s designee;

(2)  The Superintendent of the West Virginia State Police or a designee;

(3) One physician licensed to practice in the state, to be appointed by the State Medical Association;

(4) One physician licensed to practice in the state, to be appointed by the Governor;

(5) One pharmacist licensed to practice in the state, to be designated by the Board of Pharmacy;

(6) One pharmacologist who has experience in the science of cannabis and a knowledge of the uses, effects, and modes of actions of drugs, to be appointed by the Governor;

(7) One member who is a horticulturalist, to be designated by the West Virginia Commissioner of Agriculture;

(8) One member designated by the West Virginia Association of Alcoholism and Drug Counselors;

(9) An attorney licensed in the state who is knowledgeable about medical cannabis laws;

(10) One member appointed by the West Virginia Prosecuting Attorneys Institute;

(11) One member appointed by the Governor, who shall be a patient, a family or household member of a patient or a patient advocate.

 (b) The term of appointed members is four years.  However, the Governor shall set the terms of the initial members of the commission such that three expire after one year, three expire after two years, and three expire after three years in order to stagger the membership terms of the commission.  At the end of an appointed commission member’s term, he or she shall continue to serve until a successor is appointed and qualified. An appointed member may not serve more than three consecutive full terms.

(c) The Governor shall designate the chair from among the members of the commission.

(d) A majority of the membership of the commission is a quorum.

(e) A member of the commission may not receive compensation, but shall be entitled to reimbursement for expenses incurred while engaged in the discharge of official duties, not to exceed the amount paid to members of the Legislature.

(f) The commission is authorized, by legislative rule, to establish reasonable fees for licensees to cover the costs of administering the provisions of this article. 

 (g) All fees collected shall be deposited in a special account in the State Treasury to be known as the “West Virginia Medical Cannabis Commission Fund” and are not authorized from collections but are to be made only in accordance with appropriation by the Legislature and in accordance with the provisions of article three, chapter twelve of this code and upon fulfillment of the provisions of article two, chapter eleven-b of the code: Provided, That for the fiscal year ending the thirtieth day of June 2019, expenditures are authorized by collections rather than pursuant to appropriation by the Legislature.

(h) The commission may enter into reciprocity agreements with any states that have comparable requirements for the use and lawful purchase of medical cannabis in a manner consistent with the provisions of this article. 

§16-8A-4. Excise tax on Grower sales to Dispensaries; retail sales subject to state sales tax.

(a) An excise tax of eight percent of the value of all sales is hereby levied and imposed July 1, 2019, upon the sale by growers of medical cannabis to all processers and dispensaries licensed pursuant to this article.   Proceeds shall be distributed as follows:

(1) Fifty percent shall be deposited into the Fight Substance Abuse Fund created by section eight, article nine, Chapter sixty-A of this code;

(2) Forty percent shall be allocated to the Division of Justice and Community Services and expended pursuant to section three, article nine-a, chapter fifteen for grants to local law enforcement agencies for training in and promotion of community relations, patients lawful use of medical cannabis, and other training and programs promoting positive community relations; and

(3) Ten percent of the proceeds shall be transferred to the special account created in section four, article twenty-nine chapter thirty for law enforcement profession training.

(b) A retail sales tax shall be imposed on all medical cannabis  products sold by a dispensary pursuant to section three, article five, chapter eleven of this code.

§16-8A-5.  Rulemaking.

The commission shall, after consultation with the Secretary of the Department of Health and Human Resources and the Commissioner of Agriculture,  promulgate emergency rules and propose rules for legislative promulgation pursuant to the provisions of article three, chapter twenty-nine-a of this code to implement the provisions of this article, and thereafter propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code.  The Commission shall by December first, two thousand and seventeen, final file legislative rules authorizing the use of cards by patients to purchase cannabis in other states that the Commission has granted reciprocity, and to allow authorized patients to begin growing for lawful consumption. The Legislative Rule-Making and Review Committee shall consider those commission rules for consideration for passage by the 2018 legislative session.  The Commission shall also propose for legislative promulgation, legislative rules establishing licensing and permitting of growers, producers and dispensaries for consideration and authorization during the 2019 regular session.

§16-8A-6.  Certifying physician’s registration.

(a) The commission shall register a certifying physician who meets the requirements of this article and complies with all requirements of this article and any rules promulgated by the commission.

(b) To be registered as a certifying physician, a physician shall submit a proposal to the commission that includes:

(1) The reasons for including a patient under the care of the physician for the purposes of this article, including the patient’s qualifying medical conditions;

(2) An attestation that a standard patient evaluation will be completed, including a history, a physical examination, a review of symptoms, and other pertinent medical information and a bona fide practitioner-patient relationship exists; and

(3) The physician’s plan for the ongoing assessment and follow–up care of a patient, and for collecting and analyzing data.

(c) The commission may not require an individual to meet requirements in addition to the requirements listed in subsections (a) and (b) of this section to be registered as a certifying physician.

(d) The commission shall consider for approval physician applications for the following medical conditions:

(1) Chronic or debilitating diseases or medical conditions that result in a patient being admitted into Hospice or receiving palliative care; and

(2) Chronic or debilitating diseases or medical conditions or the treatment of chronic or debilitating diseases or medical conditions that produce:

(i) Cachexia, anorexia, or wasting syndrome;

(ii) Severe or chronic pain that does not find effective relief through standard pain medication, or requires extensive use of opoids;

(iii) Seizures; or

(iv)  Refractory generalized anxiety disorder.

(3) Medically assisted treatment for opioid addiction.

(4) Post-traumatic stress disorder.

 (e) The commission may authorize, by legislative rule, any other condition that for which other medical treatments have been ineffective if the symptoms reasonably can be expected to be relieved by the medical use of cannabis.

(f) A certifying physician or the spouse of a certifying physician may not receive any gifts from or have an ownership interest in a medical cannabis grower, a processor, or a dispensary.

 A certifying physician may receive compensation from a medical cannabis grower, a processor, or dispensary if the certifying physician:

(1) Obtains the approval of the commission before receiving the compensation; and

(2) Discloses the amount of compensation received from the medical cannabis grower, processor, or dispensary to the commission.

(g) A qualifying patient may be a patient of the certifying physician or may be referred to the certifying physician. A certifying physician shall provide a written certification to the commission for each qualifying patient. On receipt of a written certification provided, the commission shall issue an identification card to each qualifying patient or caregiver named in the written certification.  A qualifying patient or caregiver may obtain medical cannabis only from a dispensary licensed by the commission.

(h) A qualifying patient under the age of eighteen years may obtain medical cannabis only through his or her caregiver.   A caregiver may serve no more than five qualifying patients at any time. A qualifying patient may have no more than two caregivers.

(i) The commission shall issue physician registration annually and may grant or deny a renewal of a registration for approval based on the physician’s performance in complying with rules adopted by the commission.

(j)  Certifying physicians shall report all certifications for qualifying patients as set forth in this article to the Controlled Substances Monitoring Database as set forth in article nine, chapter sixty-A of this code. 

§16-8A-7.  Medical cannabis growers and grower agents.

(a) The commission may license medical cannabis growers that meet all requirements established by the commission to operate in the state to provide cannabis to:

(1) Processors licensed by the commission under this article;

(2) Dispensaries licensed by the commission under this article; and

(3) Independent testing laboratories registered with the commission under this article.

(b) The commission may issue the number of licenses necessary to meet the need for medical cannabis by qualifying patients and caregivers in an affordable, accessible, secure, and efficient manner.

(c) The commission shall establish an application review process for granting medical cannabis grower licenses in which applications are reviewed, evaluated, and ranked based on criteria established by the commission.   If the commission finds sufficient availability, at least ten percent of the licenses granted pursuant to this section shall be to persons participating in a veterans’ agriculture program.  The commission may not issue more than one medical cannabis grower license to each applicant. A grower shall pay an application fee in an amount to be determined by the commission consistent with this article. The commission shall set standards for licensure as a medical cannabis grower to ensure public safety and safe access to medical cannabis.

(d) Each medical cannabis grower agent shall be registered with the commission before the agent may volunteer or work for a licensed grower; and obtain state and national criminal history records checks in accordance with section twelve of this article.

(e) A licensed grower shall apply to the commission for a registration card for each grower agent by submitting the name, address, and date of birth of the agent.  The grower agent shall not enter or participate in any way with the growing operation until registered.  Within one business day after a grower agent ceases to be associated with a grower, the grower shall notify the commission and return the grower agent’s registration card to the commission.  On receipt of the notice, the commission shall immediately revoke the registration card of the grower agent and, if the registration card was not returned to the commission, notify the Superintendent of the West Virginia State Police.

(f) The commission may not register a person as a grower agent who has been convicted of a felony drug offense.

(g) A medical cannabis grower license is valid for four years on initial licensure.

(h)  A medical cannabis grower license is valid for two years on renewal.

(i) The commission may encourage licensing medical cannabis growers that grow strains of cannabis, including strains with high cannabidiol content, with demonstrated success in alleviating symptoms of specific diseases or conditions.

 (j) The commission shall seek to achieve geographic diversity when licensing medical cannabis growers.  A grower licensed under this article to operate as a medical cannabis grower shall report annually to the commission regarding geographic diversity and minority ownership and employees of the grower.

(k) Any entity licensed to grow medical cannabis under this section shall ensure that safety precautions established by the commission are followed by any facility operated by the grower. A grower licensed under this section shall allow the commission and its agents to inspect licensed facilities and any other requirements established by rule of the commission.

(l) The commission shall establish requirements for security and the manufacturing process that a grower must meet to obtain a license under this section, including, but not limited to, a requirement for a product-tracking system that tracks cannabis production to ensure that cannabis is not diverted for illegal purposes.

(m) The commission is authorized to impose penalties or rescind the license of a grower that does not meet the standards for licensure set by the commission.

(n) Notwithstanding any provision of law to the contrary, a qualifying patient is exempt from the provisions of this section and may grow and cultivate no more than two mature cannabis plants and two immature plants solely for his or her own use in accordance with the certification from a certifying physician.  A qualifying patient remains subject to the prohibitions set forth in section four hundred one, article four, chapter sixty-A of this code for delivery or distribution of any cannabis which is grown and possessed pursuant to this subsection.   

§16-8A-8.  Dispensaries.

(a) The Commission is hereby authorized to license dispensaries of medical cannabis. To be licensed as a dispensary, an applicant must submit to the commission an application fee in an amount to be determined by rule of the commission and make application for a license, in writing, that includes at a minimum:

(1) The legal name and physical address of the proposed dispensary;

(2) The name, address, and date of birth of each principal officer and each director, none of whom may have served as a principal officer or director for a dispensary that has had its license revoked; and

(3) Operating procedures that the dispensary will use, consistent with commission regulations for oversight, including storage of cannabis and products containing cannabis only in enclosed and locked facilities.

(b) The commission shall establish an application review process for granting dispensary licenses in which applications are reviewed, evaluated, and ranked based on criteria established by the commission; and actively seek to achieve geographic diversity when licensing dispensaries.

(c) Upon initial issuance, a license to dispense medical cannabis shall be valid for four years. Upon renewal, a dispensary license shall be valid for two years.

(d) A dispensary licensed under this section or a dispensary agent registered under this article may not be prosecuted or penalized under state law for acquiring, possessing, processing, transferring, transporting, selling, distributing, or dispensing cannabis, products containing cannabis, related supplies, or educational materials for use by a qualifying patient or a caregiver in compliance with the provisions of this article.

(e) The commission shall establish requirements for security and product handling procedures that a dispensary must meet to obtain a license under this section, including a requirement for a product–tracking system.

(f) A dispensary licensed under this section shall allow the Commission and its agents to inspect licensed facilities at any time without the necessity of a warrant to ensure compliance with this article.

(g) The commission may impose penalties or rescind the license of a dispensary that does not meet the standards for licensure set by the commission.

(h) Each dispensary licensed under this section shall submit to the commission a quarterly report which shall include:

(1) The number of patients served;

(2) The county of residence of each patient served;

(3) The medical condition for which medical cannabis was recommended;

(4) The type and amount of medical cannabis dispensed; and

(5) If available, a summary of clinical outcomes, including adverse events and any cases of suspected diversion.

(i) The commission may issue licenses necessary to meet the need for medical cannabis by qualifying patients and caregivers by an affordable, accessible, secure and efficient manner.

(j) The quarterly report required by the provisions of subsection (i) of this section shall not include personal identifying information of qualifying patients.

(j)  Dispensaries shall report all purchases by qualifying patients as set forth in this article to the Controlled Substances Monitoring Database as set forth in article nine, chapter sixty-A of this code.

(k) An individual who has been convicted of a felony drug offense or a conspiracy to commit such offense may not receive a license pursuant to this section. 

(l) Notwithstanding any other provision of this article, receipt of processed medical cannabis by a patient or caregiver from a dispensary may not exceed a thirty day supply of individual doses.  During the last seven days of any thirty day period during the term of the identification card, a patient may obtain and possess a thirty day supply for the subsequent thirty day period.  Additional thirty day supplies may be provided in accordance for this section for the duration of authorized period of the identification card.

§16-8A-9.  Dispensary agents.

(a) A dispensary agent shall be at least twenty-one years old and be registered with the commission before the agent may volunteer or work for a dispensary.  Each dispensary agent shall submit to state and national criminal history records check in accordance with section twelve of this article.

(b) A dispensary shall apply to the commission for a registration card for each dispensary agent by submitting the name, address, and date of birth of the agent.

(c) Within one business day after a dispensary agent ceases to be associated with a dispensary, the dispensary shall:

(1) Notify the commission; and

(2) Return the dispensary agent’s registration card to the commission.

(d) On receipt of a notice pursuant of this subsection, the commission shall immediately revoke the registration card of the dispensary agent, and if the registration card was not returned to the commission, notify the Superintendent of the West Virginia State Police.

§16-8A-10.  Processors

(a) The Commission is hereby authorized to license processors of medical cannabis.  To be licensed as a processor, an applicant must submit to the commission:

(1) An application fee in an amount to be determined by the commission in accordance with this article; and

(2) An application that includes:

(A) The legal name and physical address of the proposed processor;

(B) The name, address, and date of birth of each principal officer and director, none of whom may have served as a principal officer or director for a licensee under this article that has had its license revoked; and

(C) Operating procedures that the processor will use, consistent with commission regulations for oversight, including storage of cannabis, extracts, and products containing cannabis only in enclosed and locked facilities.

(b) The commission shall establish an application review process for granting processor licenses in which applications are reviewed, evaluated, and ranked based on criteria established by the commission.  The commission shall determine the number of processor licenses to issue based on the need for the product.

(c) Upon initial issuance, a processor license shall be valid for four years.  Upon renewal, a processor license shall be valid for two years.

(d) A processor licensed under this section or a processor agent registered pursuant to this article may not be prosecuted or penalized under state law for acquiring, possessing, processing, transferring, transporting, selling, distributing, or dispensing cannabis, products containing cannabis, related supplies, or educational materials for use by a licensee under this article or a qualifying patient or a caregiver in compliance with the provisions of this article.

(e) The commission shall establish requirements for security and product handling procedures that a processor must meet to obtain a license under this section, including a requirement for a product-tracking system that include but are not limited to:

 (1) Disclosing the THC content of each product;

(2) Restrictions on packaging to ensure it is not designed to appeal to minors; and

(3) Establishing the amount of THC that may be included in each serving of a marijuana product; and

(4) Health and safety rules and standards for the manufacture of marijuana products, including:

(A) Restrictions or prohibitions on additives to products that are toxic, designed to make the product more addictive, designed to make the product more appealing to children, or misleading to consumers; and

(B) Safety standards regulating the manufacture of marijuana extracts and concentrates.

(f) A processor licensed under this section shall allow the commission or its agents to inspect licensed facilities at any time without the necessity of a warrant to ensure compliance with this article.

(g) The commission may impose penalties or rescind the license of a processor that does not meet the standards for licensure set by the commission.

(h) An individual who has been convicted of a felony drug offense or a conspiracy to commit such offense may not receive a license pursuant to this section.

 §16-8A-11.  Processor Agents.

(a) A processor agent shall be at least twenty-one years old and be registered with the commission before the agent may volunteer or work for a processor.  Each applicant shall be subject to state and national criminal history records check in accordance with this article.

(b) A processor agent shall apply to the commission for a registration card for each processor agent by submitting the name, address, and date of birth of the agent.

(c) Within one business day after a processor agent ceases to be associated with a processor, the processor shall notify the commission and return the processor agent’s registration card to the commission.   On receipt of this notice, the commission shall immediately revoke the registration card of the processor agent, and if the registration card was not returned to the commission, notify the Superintendent of the West Virginia State Police.

§16-8A-12.  Independent Laboratories.

(a) The commission shall register a public criminal justice agency as the primary testing laboratory to test cannabis and products containing cannabis that are to be sold in the state.

(b) The commission may register additional public or private independent testing laboratories to test cannabis and products containing cannabis that are to be sold in the state.

(c) To be registered as a private independent testing laboratory, a laboratory shall:

(1) Meet the application requirements established by the commission;

(2) Pay any applicable fee required by the commission; and

(3) Meet the standards and requirements for accreditation, inspection, and testing established by the commission.

(d) The commission shall adopt regulations that establish:

(1) the standards and requirements to be met by an independent laboratory to obtain a registration;

(2) The standards of care to be followed by all testing laboratories;

(3) The initial and renewal terms for an independent laboratory registration and the renewal procedure; and

(4) The bases and processes for denial, revocation, and suspension of a registration of an independent testing laboratory.

(d) The commission may inspect any independent testing laboratory registered under this section to ensure compliance with this article.

§16-8A-13.  Criminal records check.

(a) The commission and the State Police shall enter into a memorandum of understanding regarding criminal records checks that include, at a minimum, the following:

(1) Any applicant is required to submit to the State Police all information necessary to complete a nationwide background check consisting of inquiries of the National Instant Criminal Background Check System, the West Virginia criminal history record responses and the National Interstate Identification Index;

(2) The applicant is required to pay all fees associated with the background checks;

(3) The State Police shall complete the background checks promptly upon receipt of all necessary information and fees; and

(4) The State Police shall forward to the commission and to the applicant the criminal history record information of the applicant forthwith.

(b) Information obtained from the background checks required under this section shall be:

(1) Confidential and may not be disseminated other than as authorized in this section; and

(2) Used only for the registration purpose authorized by this article.

(c) The subject of a criminal history records check under this section may appeal the contents of the printed statement issued, as authorized by relevant criminal history database.

§16-8A-14. Offenses; Exempted behaviors

(a) The following persons when acting in strict compliance with the provisions of this article are not subject to arrest, prosecution, civil or administrative penalty, including a civil penalty or disciplinary action by a professional licensing board, or be denied any right or privilege, for:

(1) A qualifying patient in possession of more than four ounces of cannabis or two immature and two mature cannabis plants grown by the patient.

(2) A grower licensed under section six of this article, or a grower agent registered under section six of this article;

(3) A certifying physician;

(4) A caregiver;

(5) A dispensary licensed or a dispensary agent registered pursuant to this article;

(6) A processor licensed or a processor agent registered pursuant to this article; or

(7) A hospital, medical facility, or hospice program where a qualifying patient is receiving treatment.

(b) Any person who knowingly distributes, possesses with intent to distribute or manufactures cannabis that has been diverted in violation of the provisions of this article from a qualifying patient, caregiver, licensed grower, or licensed dispensary, is guilty of a felony and, upon conviction, shall be imprisoned in a state correctional facility for not less than one nor more than five years, fined not more than $10,000, or both fined and imprisoned.

(c) The offense set forth in this subsection is separate and distinct from other provisions of this code prohibiting the manufacture, possession, or distribution of marijuana under this code.

§16-8A-15.  Conduct not protected.

(a) This article may not be construed to authorize any individual to engage in, and does not prohibit the imposition of any civil, criminal, or other penalties for, the following:

(1) Undertaking any task under the influence of marijuana or cannabis, when doing so would constitute negligence or professional malpractice;

(2) Operating, navigating, or being in actual physical control of any motor vehicle, aircraft, or boat while under the influence of marijuana or cannabis;

(3) Smoking marijuana or cannabis in any public place;

(4) Consuming medical cannabis in any fashion while imprisoned in a state correctional facility or regional jail, or while the patient is on a parole or probation without prior authorization;

(5) Smoking medical cannabis on public or private school or university property;

(6) Smoking medical cannabis in a motor vehicle; or

(7) Except as provided in subsection (b) of this section, smoking  or growing marijuana or cannabis on a private property that:

(A) Is rented from a landlord and subject to a contract that prohibits the smoking of marijuana or cannabis on the property; or

(B) Is subject to a policy that prohibits possessing marijuana or cannabis on the property of an attached multi-residence dwelling adopted by the council of unit owners, for entities regulated by chapter thirty-six-a of this code, or the executive board of a unit owner’s association, for entities regulated by chapter thirty-six-b of this code.

(b) The provisions of subdivision (5), subsection (a) of this section do not apply to vaporizing cannabis.

(c) This article may not be construed to provide immunity or an affirmative defense to a person who violates the provisions of this article from criminal prosecution for a violation of any law prohibiting or regulating the use, possession, dispensing, distribution, or promotion of controlled dangerous substances, dangerous drugs, detrimental drugs, or harmful drugs, or any conspiracy or attempt to commit any of those offenses.

(d) This article may not be construed to require a hospital, medical facility, or hospice program to report to the commission any disciplinary action taken by the hospital, medical facility, or hospice program against a certifying physician, including the revocation of privileges, after the registration of the certifying physician by the commission.

§16-8A-16.  State employee actions and federal law

(a) Notwithstanding any provision of this code to the contrary, a state employee who incurs counsel fees in connection with a federal criminal investigation or prosecution solely related to the employee’s good faith discharge of public responsibilities under this article is eligible for reimbursement of counsel fees.

(b) The Governor may suspend implementation of this article upon making a formal determination that there is a reasonable chance of federal prosecution of state employees for involvement with implementation of this article.

§16-8A-17. Effective dates; requirements to be met prior to implementation of article.

(a)  The provisions of sections four, seven, eight, nine, ten, eleven, thirteen, fourteen, fifteen, sixteen and seventeen of this article shall be effective on July 1, 2019.

(b) The provisions of this article shall not be construed to make lawful or otherwise authorize the growing, manufacturing, distribution, dispensing or possession of cannabis until rules so authorizing in effect.

§16-8A-18. Enactment of Municipal Ordinances.

A municipality may enact an ordinance prohibiting or limiting the number and type of cannabis dispensaries that may be permitted within the municipality, and regulating the time, place, and manner of operation of a marijuana establishment which is permitted within the municipality.  A municipality may enact an ordinance specifying the entity within the municipality that shall be responsible for reviewing applications submitted for a registration to operate a cannabis dispensary within the municipality. The entity designated by the municipality shall be responsible for indicating whether the application is in compliance with local ordinances.

§16-8A-19.  Reporting requirements.

On or before January thirty first of each year, the commission shall report to the Governor and the Joint Committee on Government and Finance the commission’s activities over the course of the previous year.