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The Colorado Conversion: A Bill On The Use and Regulation of Cannabis

I proudly present my “Colorado Conversion”. A version of the US law modified for New Zealand, and a call for help to all legal minds to make history and participate in the first ever open sourced private members bill for parliament!

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This is OPEN SOURCE government the document below can be edited by anyone, even anonymously without a Google account, you can also use the link to download it as PDF, DOCX formats for printing.

 

 

 

The following is a static copy of the Google Doc above, in case of any issues with that document. It can become out of date compared to the version above, dated 2 March 2016.

 

 

A Bill On The Use and Regulation of Cannabis

 

Based on the US Colorado use regulation bill and Colorado medical cannabis code

Initial conversion to New Zealand by Tom Atkinson aka Tomachi.TV

Under development as a private member’s bill for The Cannabis Party cannabis.org.nz

Permalink for this bill: http://www.legalise.org.nz/cannabis-bill/

 
Summary of the measure:

Be it Enacted by the People of New Zealand:

Cannabis sativa and plant extracts of cannabis be removed from the schedules of the Misuse of Drugs Act 1975 of New Zealand by amendment; and in connection therewith, providing for the regulation of Cannabis; permitting a person eighteen years of age or older to consume or possess limited amounts of Cannabis; providing for the licensing of cultivation facilities, product manufacturing facilities, testing facilities, and retail stores; permitting local governments to regulate or prohibit such facilities; requiring Parliament to enact an excise tax to be levied upon wholesale sales of Cannabis; requiring that the first $20 million in revenue raised annually by such tax be credited to a Student Loans Assistance fund; and second $20 million to a school construction fund.

 

Contents

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Section [1] Personal use and regulation of Cannabis

(1) Purpose and findings.

(2) Definitions.

(3) Personal use of Cannabis.

(4) Lawful operation of Cannabis-related facilities.

(5) Regulation of Cannabis.

(6) Employers, driving, minors and control of property.

(7) Medical Cannabis provisions unaffected.

(8) Self-executing, severability, conflicting provisions.

(9) Effective date.

Section [2] New Zealand Medical Cannabis Code

IRD Tax Enforcement

Part 1 New Zealand Medical Cannabis Code And Tax Regulations

Part 2
 National Licensing Authority

Part 3
 National And Local Government Licensing

Part 4 License Types

Part 5 Fees

Part 6 Disciplinary Actions

Part 7
 Inspection Of Books And Records

Part 8 Judicial Review

Part 9
 Unlawful Acts — Enforcement

Part 10 Sunset Review

 

Section [1] Personal use and regulation of Cannabis

(1) Purpose and findings.

 

(a) In the interest of the efficient use of law enforcement resources, enhancing revenue for public purposes, and individual freedom, the people of New Zealand find and declare that the use of Cannabis should be legal for persons eighteen years of age or older and taxed in a manner similar to alcohol.

 

(b) In the interest of the health and public safety of our citizenry, the people of New Zealand further find and declare that Cannabis should be regulated in a manner similar to alcohol so that:

 

(i) Individuals will have to show proof of age before purchasing Cannabis;

(ii) Selling, distributing, or transferring Cannabis to minors and other individuals under the age of eighteen shall remain illegal;

(iii) Driving under the influence of Cannabis shall remain illegal;

(iv) Legitimate, taxpaying business people, and not criminal actors, will conduct sales of Cannabis; and

(v) Cannabis sold in new zealand will be labeled and subject to additional regulations to ensure that consumers are informed and protected.

 

(c) In the interest of enacting rational policies for the treatment of all variations of the cannabis plant, the people of New Zealand further find and declare that industrial hemp should be regulated separately from strains of cannabis with higher delta-9 tetrahydrocannabinol (THC) concentrations.

 

(d) The people of New Zealand further find and declare that it is necessary to ensure consistency and fairness in the application of this section throughout New Zealand and that, therefore, the matters addressed by this section are, except as specified herein, matters of nationwide concern.

 

(2) Definitions.

 

As used in this section, unless the context otherwise requires,

 

(a) “New Zealand medical Cannabis code” refers to the code included in this document.

 

(b) “Consumer” means a person eighteen years of age or older who purchases Cannabis or Cannabis products for personal use by persons eighteen years of age or older, but not for resale to others.

 

(c) “Department” means the Department of Inland Revenue or its successor agency.

 

(d) “Industrial Hemp” means the plant of the genus Cannabis and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration that does not exceed three-tenths of a percent on a dry weight basis.

 

(e) “Locality” means a county, municipality, or city and county.

 

(f) “Cannabis” or “marihuana” 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 Cannabis concentrate. “Cannabis” or “marihuana” 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 Cannabis to prepare topical or oral administrations, food, drink, or other product.

 

(g) “Cannabis 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 Cannabis, or for ingesting, inhaling, or otherwise introducing Cannabis into the human body.

 

(h) “Cannabis cultivation facility” means an entity licensed to cultivate, prepare, and package Cannabis and sell Cannabis to retail Cannabis stores, to Cannabis product manufacturing facilities, and to other Cannabis cultivation facilities, but not to consumers.

 

(i) “Cannabis establishment” means a Cannabis cultivation facility, a Cannabis testing facility, a Cannabis product manufacturing facility, or a retail Cannabis store.

 

(j) “Cannabis product manufacturing facility” means an entity licensed to purchase Cannabis; manufacture, prepare, and package Cannabis products; and sell Cannabis and Cannabis products to other Cannabis product manufacturing facilities and to retail Cannabis stores, but not to consumers.

 

(k) “Cannabis products” means concentrated Cannabis products and Cannabis products that are comprised of Cannabis and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.

 

(l) “Cannabis testing facility” means an entity licensed to analyse and certify the safety and potency of Cannabis.

 

(m) “Medical Cannabis center” means an entity licensed by a local council to sell Cannabis and Cannabis products pursuant to the New Zealand medical Cannabis code.

 

(n) “Retail Cannabis store” means an entity licensed to purchase Cannabis from Cannabis cultivation facilities and Cannabis and Cannabis products from Cannabis product manufacturing facilities and to sell Cannabis and Cannabis products to consumers.

 

(o) “Unreasonably impracticable” means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a Cannabis establishment is not worthy of being carried out in practice by a reasonably prudent businessperson.

 

(3) Personal use of Cannabis.

 

Notwithstanding any other provision of law, the following acts are not unlawful and shall not be an offense under New Zealand law or be a basis for seizure or forfeiture of assets under New Zealand law for persons eighteen years of age or older:

 

(a) Possessing, using, displaying, purchasing, or transporting Cannabis accessories or one ounce or less of Cannabis.

 

(b) Possessing, growing, processing, or transporting no more than six Cannabis plants, with three or fewer being mature, flowering plants, and possession of the Cannabis produced by the plants on the premises where the plants were grown, provided that the growing takes place in an enclosed, locked space, is not conducted openly or publicly, and is not made available for sale.

 

(c) Transfer of one ounce or less of Cannabis without remuneration to a person who is eighteen years of age or older.

 

(d) Consumption of Cannabis, provided that nothing in this section shall permit consumption that is conducted openly and publicly or in a manner that endangers others.

 

(e) Assisting another person who is eighteen years of age or older in any of the acts described in paragraphs (a) through (d) of this subsection.

 

(4) Lawful operation of Cannabis-related facilities.

 

Notwithstanding any other provision of law, the following acts are not unlawful and shall not be an offense under New Zealand law or be a basis for seizure or forfeiture of assets under New Zealand law for persons eighteen years of age or older:

 

(a) Manufacture, possession, or purchase of Cannabis accessories or the sale of Cannabis accessories to a person who is eighteen years of age or older.

 

(b) Possessing, displaying, or transporting Cannabis or Cannabis products; purchase of Cannabis from a Cannabis cultivation facility; purchase of Cannabis or Cannabis products from a Cannabis product manufacturing facility; or sale of Cannabis or Cannabis products to consumers, if the person conducting the activities described in this paragraph has obtained a current, valid license to operate a retail Cannabis store or is acting in his or her capacity as an owner, employee or agent of a licensed retail Cannabis store.

 

(c) Cultivating, harvesting, processing, packaging, transporting, displaying, or possessing Cannabis; delivery or transfer of Cannabis to a Cannabis testing facility; selling Cannabis to a Cannabis cultivation facility, a Cannabis product manufacturing facility, or a retail Cannabis store; or the purchase of Cannabis from a Cannabis cultivation facility, if the person conducting the activities described in this paragraph has obtained a current, valid license to operate a Cannabis cultivation facility or is acting in his or her capacity as an owner, employee, or agent of a licensed Cannabis cultivation facility.

 

(d) Packaging, processing, transporting, manufacturing, displaying, or possessing Cannabis or Cannabis products; delivery or transfer of Cannabis or Cannabis products to a Cannabis testing facility; selling Cannabis or Cannabis products to a retail Cannabis store or a Cannabis product manufacturing facility; the purchase of Cannabis from a Cannabis cultivation facility; or the purchase of Cannabis or Cannabis products from a Cannabis product manufacturing facility, if the person conducting the activities described in this paragraph has obtained a current, valid license to operate a Cannabis product manufacturing facility or is acting in his or her capacity as an owner, employee, or agent of a licensed Cannabis product manufacturing facility.

 

(e) Possessing, cultivating, processing, repackaging, storing, transporting, displaying, transferring or delivering Cannabis or Cannabis products if the person has obtained a current, valid license to operate a Cannabis testing facility or is acting in his or her capacity as an owner, employee, or agent of a licensed Cannabis testing facility.

 

(f) Leasing or otherwise allowing the use of property owned, occupied or controlled by any person, corporation or other entity for any of the activities conducted lawfully in accordance with paragraphs (a) through (e) of this subsection.

 

(5) Regulation of Cannabis.

 

(a) Not later than July 1, 2016 [CHECKDATE], the department shall adopt regulations necessary for implementation of this section. Such regulations shall not prohibit the operation of Cannabis establishments, either expressly or through regulations that make their operation unreasonably impracticable. Such regulations shall include:

 

(i) Procedures for the issuance, renewal, suspension, and revocation of a license to operate a Cannabis establishment, with such procedures subject to all requirements of the sale and supply of alcohol act 2012 [CHECKLAW] or any successor provision;

(ii) A schedule of application, licensing and renewal fees, provided, application fees shall not exceed five thousand dollars, with this upper limit adjusted annually for inflation, unless the department determines a greater fee is necessary to carry out its responsibilities under this section, and provided further, an entity that is licensed under the New Zealand medical Cannabis code to cultivate or sell Cannabis or to manufacture Cannabis products at the time this section takes effect and that chooses to apply for a separate Cannabis establishment license shall not be required to pay an application fee greater than five hundred dollars to apply for a license to operate a Cannabis establishment in accordance with the provisions of this section;

(iii) Qualifications for licensure that are directly and demonstrably related to the operation of a Cannabis establishment;

(iv) Security requirements for Cannabis establishments;

(v) Requirements to prevent the sale or diversion of Cannabis and Cannabis products to persons under the age of eighteen;

(vi) Labeling requirements for Cannabis and Cannabis products sold or distributed by a Cannabis establishment;

(vii) Health and safety regulations and standards for the manufacture of Cannabis products and the cultivation of Cannabis;

(viii) Restrictions on the advertising and display of Cannabis and Cannabis products; and

(ix) Civil penalties for the failure to comply with regulations made pursuant to this section.

 

(b) In order to ensure the most secure, reliable, and accountable system for the production and distribution of Cannabis and Cannabis products in accordance with this subsection, in any competitive application process the department shall have as a primary consideration whether an applicant:

(i) Has prior experience producing or distributing Cannabis or Cannabis products pursuant to section 14 of this article and the New Zealand medical Cannabis code in the locality in which the applicant seeks to operate a Cannabis establishment; and

(ii) Has, during the experience described in subparagraph (i), complied consistently with section 14 of this article, the provisions of the New Zealand medical Cannabis code and conforming regulations.

 

(c) In order to ensure that individual privacy is protected, notwithstanding paragraph (a), the department shall not require a consumer to provide a retail Cannabis store with personal information other than government-issued identification to determine the consumer’s age, and a retail Cannabis store shall not be required to acquire and record personal information about consumers other than information typically acquired in a financial transaction conducted at a retail liquor store.

 

(d) Parliament shall enact an excise tax to be levied upon Cannabis sold or otherwise transferred by a Cannabis cultivation facility to a Cannabis product manufacturing facility or to a retail Cannabis store at a rate not to exceed fifteen percent prior to January 1, 2017 [CHECKDATE] and at a rate to be determined by Parliament thereafter, and shall direct the department to establish procedures for the collection of all taxes levied. Provided, the first twenty million dollars in revenue raised annually from any such excise tax shall be disbursed evenly to all students with student loan, and the second twenty million dollars do a school capital construction fund dedicated to early childcare, primary and secondary schools. Provided further, no such excise tax shall be levied upon Cannabis intended for sale at medical Cannabis centers pursuant to section 14 of this article and the New Zealand medical Cannabis code.

 

(e) Not later than July 1, 2017 [CHECKDATE], each locality shall enact an ordinance or regulation specifying the entity within the locality that is responsible for processing applications submitted for a license to operate a Cannabis establishment within the boundaries of the locality and for the issuance of such licenses should the issuance by the locality become necessary because of a failure by the department to adopt regulations pursuant to paragraph (a) or because of a failure by the department to process and issue licenses as required by paragraph (g).

 

(f) A locality may enact ordinances or regulations, not in conflict with this section or with regulations or legislation enacted pursuant to this section, governing the time, place, manner and number of Cannabis establishment operations; establishing procedures for the issuance, suspension, and revocation of a license issued by the locality in accordance with paragraph (h) or (i), such procedures to be subject to all requirements of article 4 of title 24 of the New Zealand administrative procedure act or any successor provision; establishing a schedule of annual operating, licensing, and application fees for Cannabis establishments, provided, the application fee shall only be due if an application is submitted to a locality in accordance with paragraph (i) and a licensing fee shall only be due if a license is issued by a locality in accordance with paragraph (h) or (i); and establishing civil penalties for violation of an ordinance or regulation governing the time, place, and manner of a Cannabis establishment that may operate in such locality. A locality may prohibit the operation of Cannabis cultivation facilities, Cannabis product manufacturing facilities, Cannabis testing facilities, or retail Cannabis stores through the enactment of an ordinance or through an initiated or referred measure; provided, any initiated or referred measure to prohibit the operation of Cannabis cultivation facilities, Cannabis product manufacturing facilities, Cannabis testing facilities, or retail Cannabis stores must appear on a general election ballot during an even numbered year.

 

(g) Each application for an annual license to operate a Cannabis establishment shall be submitted to the department. The department shall:

 

(i) Begin accepting and processing applications on July 1, 2016 [CHECKDATE];

 

(ii) Immediately forward a copy of each application and half of the license application fee to the locality in which the applicant desires to operate the Cannabis establishment;

 

(iii) Issue an annual license to the applicant between forty-five and ninety days after receipt of an application unless the department finds the applicant is not in compliance with regulations enacted pursuant to paragraph (a) or the department is notified by the relevant locality that the applicant is not in compliance with ordinances and regulations made pursuant to paragraph (f) and in effect at the time of application, provided, where a locality has enacted a numerical limit on the number of Cannabis establishments and a greater number of applicants seek licenses, the department shall solicit and consider input from the locality as to the locality’s preference or preferences for licensure; and (iv) upon denial of an application, notify the applicant in writing of the specific reason for its denial.

 

(h) If the department does not issue a license to an applicant within ninety days of receipt of the application filed in accordance with paragraph (g) and does not notify the applicant of the specific reason for its denial, in writing and within such time period, or if the department has adopted regulations pursuant to paragraph (a) and has accepted applications pursuant to paragraph (g) but has not issued any licenses by July 1, 2017 [CHECKDATE], the applicant may resubmit its application directly to the locality, pursuant to paragraph (e), and the locality may issue an annual license to the applicant. A locality issuing a license to an applicant shall do so within ninety days of receipt of the resubmitted application unless the locality finds and notifies the applicant that the applicant is not in compliance with ordinances and regulations made pursuant to paragraph (f) in effect at the time the application is resubmitted and the locality shall notify the department if an annual license has been issued to the applicant. If an application is submitted to a locality under this paragraph, the department shall forward to the locality the application fee paid by the applicant to the department upon request by the locality. A license issued by a locality in accordance with this paragraph shall have the same force and effect as a license issued by the department in accordance with paragraph (g) and the holder of such license shall not be subject to regulation or enforcement by the department during the term of that license. A subsequent or renewed license may be issued under this paragraph on an annual basis only upon resubmission to the locality of a new application submitted to the department pursuant to paragraph (g).

 

(i) If the department does not adopt regulations required by paragraph (a), an applicant may submit an application directly to a locality after July 1, 2017 [CHECKDATE] and the locality may issue an annual license to the applicant. A locality issuing a license to an applicant shall do so within ninety days of receipt of the application unless it finds and notifies the applicant that the applicant is not in compliance with ordinances and regulations made pursuant to paragraph (f) in effect at the time of application and shall notify the department if an annual license has been issued to the applicant. A license issued by a locality in accordance with this paragraph shall have the same force and effect as a license issued by the department in accordance with paragraph (g) and the holder of such license shall not be subject to regulation or enforcement by the department during the term of that license. A subsequent or renewed license may be issued under this paragraph on an annual basis if the department has not adopted regulations required by paragraph (a) at least ninety days prior to the date upon which such subsequent or renewed license would be effective or if the department has adopted regulations pursuant to paragraph (a) but has not, at least ninety days after the adoption of such regulations, issued licenses pursuant to paragraph (g).

 

(j) Not later than July 1, 2016 [CHECKDATE], Parliament shall enact legislation governing the cultivation, processing and sale of industrial hemp.

 

(6) Employers, driving, minors and control of property.

 

(a) Nothing in this section is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale or growing of Cannabis in the workplace or to affect the ability of employers to have policies restricting the use of Cannabis by employees.

 

(b) Nothing in this section is intended to allow driving under the influence of Cannabis or driving while impaired by Cannabis or to supersede statutory laws related to driving under the influence of Cannabis or driving while impaired by Cannabis, nor shall this section prevent the government from enacting and imposing penalties for driving under the influence of or while impaired by Cannabis.

 

(c) Nothing in this section is intended to permit the transfer of Cannabis, with or without remuneration, to a person under the age of eighteen or to allow a person under the age of eighteen to purchase, possess, use, transport, grow, or consume Cannabis.

 

(d) Nothing in this section shall prohibit 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 growing of Cannabis on or in that property.

 

(7) Medical Cannabis provisions unaffected.

 

Nothing in this section shall be construed:

 

(a) To limit any privileges or rights of a medical Cannabis patient, primary caregiver, or licensed entity as provided in section 14 of this article and the New Zealand medical Cannabis code;

 

(b) To permit a medical Cannabis center to distribute Cannabis to a person who is not a medical Cannabis patient;

 

(c) To permit a medical Cannabis center to purchase Cannabis or Cannabis products in a manner or from a source not authorised under the New Zealand medical Cannabis code;

 

(d) To permit any medical Cannabis center licensed pursuant to section 14 of this article and the New Zealand medical Cannabis code to operate on the same premises as a retail Cannabis store; or

 

(e) To discharge the department, the New Zealand board of health, or the New Zealand Ministry of Health from their statutory and constitutional duties to regulate medical Cannabis pursuant to section 14 of this article and the New Zealand medical Cannabis code.

 

(8) Self-executing, severability, conflicting provisions.

 

All provisions of this section are self-executing except as specified herein, are severable, and, except where otherwise indicated in the text, shall supersede conflicting local government, local charter, ordinance, or resolution, and other local council provisions.

 

(9) Effective date.

 

Unless otherwise provided by this section, all provisions of this section shall become effective upon official declaration of the vote hereon by proclamation of the governor general

 

Section [2] New Zealand Medical Cannabis Code

IRD Tax Enforcement

Part 1 New Zealand Medical Cannabis Code And Tax Regulations

 

-Section 101. Short title.

 

This article shall be known and may be cited as the “New Zealand Medical Cannabis Code”.

 

-Section 102. Legislative declaration.

 

(1) Parliament hereby declares that this article shall be deemed an exercise for the protection of the economic and social welfare and the health, peace, and morals of the people of this country.

 

(2) Parliament further declares that it is unlawful to cultivate, manufacture, distribute, or sell medical Cannabis, except in compliance with the terms, conditions, limitations, and restrictions in section this article or when acting as a primary caregiver in compliance with the terms, conditions, limitations, and restrictions of the Public Health and Disability Amendment Act 2013.

 

-Section 103. Applicability.

 

(1) (a) On July 1, 2016 [CHECKDATE], a person who is operating an established, locally approved business for the purpose of cultivation, manufacture, or sale of medical Cannabis or medical Cannabis-infused products or a person who has applied to a local government to operate a locally approved business for the purpose of cultivation, manufacture, or sale of medical Cannabis or medical Cannabis-infused products which is subsequently granted may continue to operate that business in accordance with any applicable national or local laws. “Established”, as used in this paragraph (a), shall mean owning or leasing a space with a storefront and remitting sales taxes in a timely manner on retail sales of the business as required pursuant to relevant applicable sales taxes.

 

(b) To continue operating a business or operation as described in paragraph (a) of this subsection (1), the owner shall, on or before July 1, 2016 [CHECKDATE], complete forms as provided by the department of inland revenue and shall pay a fee, which shall be credited to the medical Cannabis license cash fund established pursuant to section 501. The purpose of the fee shall be to pay for the direct and indirect costs of the National Licensing Authority and the development of application procedures and rules necessary to implement this article. Payment of the fee and completion of the form shall not create a local or national license or a present or future entitlement to receive a license. An owner issued a local license after July 1, 2016 [CHECKDATE], shall complete the forms and pay the fee pursuant to this paragraph (b) within thirty days after issuance of the local license. In addition to any criminal penalties for selling without a license, it shall be unlawful to continue operating a business or operation without filing the forms and paying the fee as described in this paragraph (b), and any violation of this section shall be prima-facie evidence of unsatisfactory character, record, and reputation for any future application for license under this article.

(c) Local councils shall provide to the National Licensing Authority, upon request, a list that includes the name and location of each local center or operation licensed in said region, so that the National Licensing Authority can identify any center or operation operating unlawfully.

 

(2) (a) Prior to July 1, 2016 [CHECKDATE], a local council may adopt and enforce a resolution or ordinance licensing, regulating, or prohibiting the cultivation or sale of medical Cannabis. In a region where such an ordinance or resolution has been adopted, a person who is not registered as a patient or primary caregiver pursuant to the Medical Cannabis Code, and who is cultivating or selling medical Cannabis shall not be entitled to an affirmative defence to a criminal prosecution as provided for in this document unless the person is in compliance with the applicable local council bylaw.

(b) On or before July 1, 2016 [CHECKDATE], a business or operation shall certify that it is cultivating at least seventy percent of the medical Cannabis necessary for its operation.

(c) On and after July 1, 2016 [CHECKDATE], all businesses for the purpose of cultivation, manufacture, or sale of medical Cannabis or medical Cannabis-infused products, as defined in this article, shall be subject to the terms and conditions of this article and any rules promulgated pursuant to this article; except that a person that has met the deadlines set forth in paragraphs (a) and (b) of subsection (1) of this section that has not had its application acted upon by the National Licensing Authority may continue to operate until action is taken on the application, unless the person is operating in a local council jurisdiction that has imposed a prohibition on licensure. While continuing to operate prior to the National Licensing Authority acting on the application, the person shall otherwise be subject to the terms and conditions of this article and all rules promulgated pursuant to this article.

(d) (I) On and after July 1, 2016 [CHECKDATE], persons who did not meet all requirements of paragraph (a) of subsection (1) of this section as of July 1, 2016 [CHECKDATE], may begin to apply for a license pursuant to this article. A business or operation that applies and is approved for its license after July 1, 2016 [CHECKDATE], shall certify to the National Licensing Authority that it is cultivating at least seventy percent of the medical Cannabis necessary for its operation within ninety days after being licensed.

(II) For those persons that are licensed prior to July 1, 2016 [CHECKDATE], the person may apply to the local council and national licensing authorities regarding changes to its license and may apply for a new license if the license is for a business that has been licensed and the person is purchasing that business or if the business is changing license type.

(III) For a person who has met the deadlines set forth in paragraphs (a) and (b) of subsection (1) of this section and who has lost his or her location because a city council has voted pursuant to section 106 to ban his or her operation, the person may apply for a new license with a local licensing authority and transfer the location of its pending application with the National Licensing Authority.

(e) This article sets forth the exclusive means by which manufacture, sale, distribution, and dispensing of medical Cannabis may occur in New Zealand.

 

-Section 104. Definitions.

 

As used in this article, unless the context otherwise requires:

(1) “Good cause”, for purposes of refusing or denying a license renewal, reinstatement, or initial license issuance, 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 article, any rules promulgated pursuant to this article, 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 national or local licensing authority;

(c) The licensed premises have been operated in a manner that adversely affects the public health or welfare or the safety of the immediate neighborhood in which the establishment is located.

(1.5) “Immature plant” means a nonflowering medical Cannabis plant that is no taller than 25 centimeters and no wider than 25 centimeters produced from a cutting, clipping, or seedling and that is in a growing container that is no larger than seven centimeters wide and seven centimeters tall that is sealed on the sides and bottom.

(2) “License” means to grant a license or registration pursuant to this article.

(3) “Licensed premises” means the premises specified in an application for a license under this article, which are owned or in possession of the licensee and within which the licensee is authorised to cultivate, manufacture, distribute, or sell medical Cannabis in accordance with the provisions of this article.

(4) “Licensee” means a person licensed or registered pursuant to this article.

(5) “Local licensing authority” means an authority designated by municipal or county charter, ordinance, or resolution, or the governing body of a municipality, city and county, or the board of county commissioners of a county if no such authority is designated.

(6) “Location” means a particular parcel of land that may be identified by an address or other descriptive means.

(7) “Medical Cannabis” means Cannabis that is grown and sold pursuant to the provisions of this article but shall not be considered a nonprescription drug or an over-the-counter medication.

(8) “Medical Cannabis center” means a person licensed pursuant to this article to operate a business as described in section 402 that sells medical Cannabis to registered patients or primary caregivers, but is not themselves a primary caregiver.

(9) “Medical Cannabis-infused product” means a product infused with medical Cannabis that is intended for use or consumption other than by smoking, including but not limited to edible products, ointments, and tinctures. These products, when manufactured or sold by a licensed medical Cannabis center or a medical Cannabis-infused product manufacturer, shall not be considered a food or drug for the purposes of the “New Zealand Food and Drug Act”, part 4 of article 5 of title 25, C.R.S [CHECKLAW].

(10) “Medical Cannabis-infused products manufacturer” means a person licensed pursuant to this article to operate a business as described in section -404.

(11) “Optional premises” means the premises specified in an application for a medical Cannabis center license with related growing facilities in New Zealand for which the licensee is authorised to grow and cultivate Cannabis for a purpose authorised by this legislation.

(12) “Optional premises cultivation operation” means a person licensed pursuant to this article to operate a business as described in section 403.

(13) “Person” means a natural person, partnership, association, company, corporation, limited liability company, or organisation, or a manager, agent, owner, director, servant, officer, or employee thereof.

(14) “Premises” means a distinct and definite location, which may include a building, a part of a building, a room, or any other definite contiguous area.

(15) “School” means a public or private preschool or a public or private primary, intermediate, high school, but excludes tertiary and adult training institutes.

(16) “National Licensing Authority” means the authority created for the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, and sale of medical Cannabis in this country, pursuant to section 201.

 

-Section 105. Limited access areas.

 

Subject to the provisions of section 701, a limited access area shall be a building, room, or other contiguous area upon the licensed premises where medical Cannabis is grown, cultivated, stored, weighed, displayed, packaged, sold, or possessed for sale, under control of the licensee, with limited access to only those persons licensed by the National Licensing Authority. All areas of ingress or egress to limited access areas shall be clearly identified as such by a sign as designated by the National Licensing Authority.

 

-Section 106. Local option.

 

The operation of this article shall be nationwide unless a local council, by either a majority vote at a regular election or special election or a majority of the members of the governing board for the local council, vote to prohibit the operation of medical Cannabis centers, optional premises cultivation operations, and medical Cannabis-infused products manufacturers’ licenses.

 

Part 2
 National Licensing Authority

 

-Section 201. National Licensing Authority — Creation.

 

(1) For the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, and sale of medical Cannabis in this country, there is hereby created the National Licensing Authority, which shall be the executive director of the department of inland revenue or the deputy director of the department of inland revenue if the executive director so designates.

(2) The executive director of the department of inland revenue shall be the chief administrative officer of the National Licensing Authority and may employ, pursuant to relevant and applicable tax law, such officers and employees as may be determined to be necessary, which officers and employees shall be part of the authority. The National Licensing Authority shall, at its discretion, based upon workload, employ no more than one full-time equivalent employee for each twenty medical Cannabis centers licensed by or making application with the authority. No moneys shall be appropriated to the National Licensing Authority from the general consolidated fund for the operation of this article, nor shall the National Licensing Authority expend any general consolidated fund moneys for the operation of this article.

 

-Section 202. Powers and Duties of National Licensing Authority.

 

(1) The National Licensing Authority shall:

(a) Grant or refuse national licenses for the cultivation, manufacture, distribution, and sale of medical Cannabis as provided by law; suspend, fine, restrict, or revoke such licenses upon a violation of this article, or a rule promulgated pursuant to this article; and impose any penalty authorised by this article or any rule promulgated pursuant to this article. The National Licensing Authority may take any action with respect to a registration pursuant to this article as it may with respect to a license pursuant to this article, in accordance with the procedures established pursuant to this article.

(b) (I) Promulgate such rules and such special rulings and findings as necessary for the proper regulation and control of the cultivation, manufacture, distribution, and sale of medical Cannabis and for the enforcement of this article. A local council that has adopted a temporary moratorium regarding the subject matter of this article shall be specifically authorised to extend the moratorium until July 1, 2019 [CHECKDATE].

(c) Hear and determine at a public hearing any contested national license denial and any complaints against a licensee and 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 National Licensing Authority may, at its discretion, delegate to the department of inland revenue hearing officers the authority to conduct licensing, disciplinary, and rule-making hearings. When conducting such hearings, the hearing officers shall be employees of the National Licensing Authority under the direction and supervision of the executive director and the National Licensing Authority.

(d) Maintain the confidentiality of reports or other information obtained from a licensee showing the sales volume or quantity of medical Cannabis sold, or revealing any patient 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 authorised by this article or for any other state or local law enforcement purpose. Any information released related to patients may be used only for a purpose authorised by this article or to verify that a person who presented a registry identification card to a state or local law enforcement official is lawfully in possession of such card.

(e) Develop such forms, licenses, identification cards, and applications as are necessary or convenient in the discretion of the National Licensing Authority for the administration of this article or any of the rules promulgated under this article;

(f) Prepare and transmit annually, in the form and manner prescribed by the heads of the principal departments a report accounting to the governor for the efficient discharge of all responsibilities assigned by law or directive to the National Licensing Authority; and

(g) In recognition of the potential medicinal value of medical Cannabis, make a request by July 1, 2019 [CHECKDATE], to Medsafe NZ to reschedule, for pharmaceutical purposes, medical Cannabis into a more appropriate category.

(2) (a) Rules promulgated pursuant to paragraph (b) of subsection (1) of this section may include, but need not be limited to, the following subjects:

(I) Compliance with, enforcement of, or violation of any provision of this article, or any rule issued pursuant to this article, including procedures and grounds for denying, suspending, fining, restricting, or revoking a national license issued pursuant to this article;

(II) Specifications of duties of officers and employees of the National Licensing Authority;

(III) Instructions for local licensing authorities and law enforcement officers;

(IV) Requirements for inspections, investigations, searches, seizures, forfeitures, and such additional activities as may become necessary from time to time;

(V) Creation of a range of penalties for use by the National Licensing Authority;

(VI) Prohibition of misrepresentation and unfair practices;

(VII) Control of informational and product displays on licensed premises;

(VIII) Development of individual identification cards for owners, officers, managers, contractors, employees, and other support staff of entities licensed pursuant to this article, including a fingerprint-based criminal history record check as may be required by the National Licensing Authority prior to issuing a card;

(IX) Identification of national licensees and their owners, officers, managers, and employees;

(X) Security requirements for any premises licensed pursuant to this article, including, at a minimum, lighting, physical security, video, alarm requirements, and other minimum procedures for internal control as deemed necessary by the National Licensing Authority to properly administer and enforce the provisions of this article, including reporting requirements for changes, alterations, or modifications to the premises;

(XI) Regulation of the storage of, warehouses for, and transportation of medical Cannabis;

(XII) Sanitary requirements for medical Cannabis centers, including but not limited to sanitary requirements for the preparation of medical Cannabis-infused products;

(XIII) The specification of acceptable forms of picture identification that a medical Cannabis center may accept when verifying a sale;

(XIV) Labeling standards;

(XIV.5) Prohibiting the sale of medical Cannabis-infused products unless the product is packaged:

(A) In special packaging that is designed or constructed to be significantly difficult for children under five years of age to open and not difficult for normal adults to use properly and that does not allow the product to be seen without opening the packaging material; or

(B) In packaging that is labeled “Medicinal product — keep out of reach of children”;

(XV) Records to be kept by licensees and the required availability of the records;

(XVI) National licensing procedures, including procedures for renewals, reinstatements, initial licenses, and the payment of licensing fees;

(XVII) The reporting and transmittal of monthly sales tax payments by medical Cannabis centers;

(XVIII) Authorization for the department of inland revenue to have access to licensing information to ensure sales and income tax payment and the effective administration of this article;

(XIX) Authorization for the department of inland revenue to issue administrative citations and procedures for issuing, appealing, and creating a citation violation list and schedule of penalties; and

(XX) Such other matters as are necessary for the fair, impartial, stringent, and comprehensive administration of this article.

(b) Nothing in this article shall be construed as delegating to the National Licensing Authority the power to fix prices for medical Cannabis.

(c) Nothing in this article shall be construed to limit a police’s ability to investigate unlawful activity in relation to a medical Cannabis center, optional premises cultivation operation, or medical Cannabis-infused products manufacturer. A police shall have the authority to run a New Zealand crime information center criminal history record check of a primary caregiver, licensee, or employee of a licensee during an investigation of unlawful activity related to medical Cannabis.

 

Part 3
 National And Local Government Licensing

 

-Section 301. Local council licensing authority — applications — licenses.

 

(1) A local licensing authority may issue only the following medical Cannabis licenses upon payment of the fee and compliance with all local licensing requirements to be determined by the local licensing authority:

(a) A medical Cannabis center license; 
(b) An optional premises cultivation license;
 (c) A medical Cannabis-infused products manufacturing license.

(2) (a) A local licensing authority shall not issue a local license unless the relevant local council has adopted an ordinance or resolution containing specific standards for license issuance, or if no such ordinance or resolution is adopted prior to July 1, 2016 [CHECKDATE], then a local licensing authority shall consider the minimum licensing requirements of this part 3 when issuing a license.

(b) In addition to all other standards applicable to the issuance of licenses under this article, the local governing body may adopt additional standards for the issuance of medical Cannabis center, optional premises cultivation, or medical Cannabis-infused products manufacturer licenses consistent with the intent of this article that may include, but need not be limited to:

(I) Distance restrictions between premises for which local licenses are issued;

(II) Reasonable restrictions on the size of an applicant’s licensed premises; and

(III) Any other requirements necessary to ensure the control of the premises and the ease of enforcement of the terms and conditions of the license.

(3) An application for a license specified in subsection (1) of this section shall be filed with the appropriate local licensing authority on forms provided by the National Licensing Authority and shall contain such information as the National Licensing Authority may require and any forms as the local licensing authority may require. Each application shall be verified by the oath or affirmation of the persons prescribed by the National Licensing Authority.

(4) An applicant shall file, at the time of application for a local license, plans and specifications for the interior of the building if the building to be occupied is in existence at the time. If the building is not in existence, the applicant shall file a plot plan and a detailed sketch for the interior and submit an architect’s drawing of the building to be constructed. In its discretion, the local or National Licensing Authority may impose additional requirements necessary for the approval of the application.

 

-Section 302. Public hearing notice — posting and publication.

 

(1) Upon receipt of an application for a local license, except an application for renewal or for transfer of ownership, a local licensing authority may schedule a public hearing upon the application to be held not less than thirty days after the date of the application. If the local licensing authority schedules a hearing for a license application, it shall post and publish public notice thereof not less than ten days prior to the hearing. The local licensing authority shall give public notice by posting a sign in a conspicuous place on the license applicant’s premises for which license application has been made and by publication in a newspaper of general circulation in the county in which the applicant’s premises are located.

(2) Public notice given by posting shall include a sign of suitable material, not less than twenty-two inches wide and twenty-six inches high, composed of letters not less than one inch in height and stating the type of license applied for, the date of the application, the date of the hearing, the name and address of the applicant, and such other information as may be required to fully apprise the public of the nature of the application. The sign shall contain the names and addresses of the officers, directors, or manager of the facility to be licensed.

(3) Public notice given by publication shall contain the same information as that required for signs.

(4) If the building in which medical Cannabis is to be cultivated, manufactured, or distributed is in existence at the time of the application, a sign posted as required in subsections (1) and (2) of this section shall be placed so as to be conspicuous and plainly visible to the general public. If the building is not constructed at the time of the application, the applicant shall post a sign at the premises upon which the building is to be constructed in such a manner that the notice shall be conspicuous and plainly visible to the general public.

(5) (a) A local licensing authority, or a license applicant with local licensing authority approval, may request that the National Licensing Authority conduct a concurrent review of a new license application prior to the local licensing authority’s final approval of the license application. Local licensing authorities who permit a concurrent review will continue to independently review the applicant’s license application.

(b) When conducting a concurrent application review, the National Licensing Authority may advise the local licensing authority of any items that it finds that could result in the denial of the license application. Upon correction of the noted discrepancies, if the correction is permitted by the National Licensing Authority, the National Licensing Authority shall notify the local licensing authority of its conditional approval of the license application subject to the final approval by the local licensing authority. The National Licensing Authority shall then issue the applicant’s local license upon receiving evidence of final approval by the local licensing authority.

(c) All applications submitted for concurrent review shall be accompanied by all applicable national license and application fees. Any applications that are later denied or withdrawn may allow for a refund of license fees only. All application fees provided by an applicant shall be retained by the respective licensing authority.

 

-Section 303. Results of investigation — decision of authorities.

 

(1) Not less than five days prior to the date of the public hearing authorised in section – 302, the local licensing authority shall make known its findings, based on its investigation, in writing to the applicant and other parties of interest. The local licensing authority has authority to refuse to issue a license provided for in this section for good cause, subject to judicial review.

(2) Before entering a decision approving or denying the application for a local license, the local licensing authority may consider, except where this article specifically provides otherwise, the facts and evidence adduced as a result of its investigation, as well as any other facts pertinent to the type of license for which application has been made, including the number, type, and availability of medical Cannabis centers, optional premises cultivation operations, or medical Cannabis-infused products manufacturers located in or near the premises under consideration, and any other pertinent matters affecting the qualifications of the applicant for the conduct of the type of business proposed.

(3) Within thirty days after the public hearing or completion of the application investigation, a local licensing authority shall issue its decision approving or denying an application for local licensure. The decision shall be in writing and shall state the reasons for the decision. The local licensing authority shall send a copy of the decision by certified mail to the applicant at the address shown in the application.

(4) After approval of an application, a local licensing authority shall not issue a local license until the building in which the business to be conducted is ready for occupancy with such furniture, fixtures, and equipment in place as are necessary to comply with the applicable provisions of this article, and then only after the local licensing authority has inspected the premises to determine that the applicant has complied with the architect’s drawing and the plot plan and detailed sketch for the interior of the building submitted with the application.

(5) After approval of an application for local licensure, the local licensing authority shall notify the National Licensing Authority of such approval, who shall investigate and either approve or disapprove the application for national licensure.

 

-Section 304. Medical Cannabis license bond.

 

(1) Before the National Licensing Authority issues a national license to an applicant, the applicant shall procure and file with the National Licensing Authority evidence of a good and sufficient bond in the amount of five thousand dollars with corporate surety thereon duly licensed to do business with the state, approved as to form by the attorney general, and conditioned that the applicant shall report and pay all sales and use taxes due, or for which the IRD is the collector or collecting agent, in a timely manner, as provided in law.

(2) A corporate surety shall not be required to make payments to the state claiming under such bond until a final determination of failure to pay taxes due to the state has been made by the National Licensing Authority or a court of competent jurisdiction.

(3) All bonds required pursuant to this section shall be renewed at such time as the bondholder’s license is renewed. The renewal may be accomplished through a continuation certificate issued by the surety.

 

-Section 305. National Licensing Authority — application and issuance procedures.

 

(1) Applications for a national license under the provisions of this article shall be made to the National Licensing Authority on forms prepared and furnished by the National Licensing Authority and shall set forth such information as the National Licensing Authority may require to enable the National Licensing Authority to determine whether a national license should be granted. The information shall include the name and address of the applicant, the names and addresses of the officers, directors, or managers, and all other information deemed necessary by the National Licensing Authority. Each application shall be verified by the oath or affirmation of such person or persons as the National Licensing Authority may prescribe.

(2) The National Licensing Authority shall not issue a national license pursuant to this section until the local licensing authority has approved the application for a local license and issued a local license as provided for in sections 301 to 303.

(3) Nothing in this article shall preempt or otherwise impair the power of a local government to enact ordinances or resolutions concerning matters authorised to local governments.

 

-Section 306. Denial of application.

 

(1) The National Licensing Authority shall deny a national license if the premises on which the applicant proposes to conduct its business do not meet the requirements of this article or for reasons set forth in section 104 (1) (c) or 305, and the National Licensing Authority may deny a license for good cause as defined by section 104 (1) (a) or (1) (b).

(2) If the National Licensing Authority denies a national license pursuant to subsection (1) of this section, the applicant shall be entitled to a hearing and judicial review. The National Licensing Authority shall provide written notice of the grounds for denial of the national license to the applicant and to the local licensing authority at least fifteen days prior to the hearing.

 

-Section 307. Persons prohibited as licensees.

 

(1) A license provided by this article shall not be issued to or held by:

(a) A person until the annual fee therefore has been paid;

(c) A corporation, if the criminal history of any of its officers, directors, or stockholders indicates that the officer, director, or stockholder is not of good moral character;

(d) A licensed physician making patient recommendations;

(f) A person under eighteen years of age;

(g) A person licensed pursuant to this article who, during a period of licensure, or who, at the time of application, has failed to:

(I) Provide a surety bond or file any tax return with a taxing agency;

(II) Pay any taxes, interest, or penalties due;

(III) Pay any judgments due to a government agency;

(IV) Stay out of default on a government-issued student loan;

(V) Pay child support; or

(VI) Remedy an outstanding delinquency for taxes owed, an outstanding delinquency for judgments owed to a government agency, or an outstanding delinquency for child support;

(j) A sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the National Licensing Authority or a local licensing authority;

(k) A person whose authority to be a primary caregiver;

(l) A person for a license for a location that is currently licensed as a retail food establishment or wholesale food registrant; or

(m) An owner, as defined by rule of the National Licensing Authority, who has not been a resident of New Zealand for at least two years prior to the date of the owner’s application; except that:

(I) (A) For an owner who submits an application for licensure pursuant to this article by July 1, 2017 [CHECKDATE], this requirement shall not apply to that owner if he or she was a resident of New Zealand on July 1, 2006 [CHECKDATE].

(2)

(a) In investigating the qualifications of an applicant or a licensee, the national and local licensing authorities may have access to criminal history record information furnished by a criminal justice agency subject to any restrictions imposed by such agency. In the event the national or local licensing authority considers the applicant’s criminal history record, the national or local licensing authority shall also consider any information provided by the applicant regarding such criminal history record, including but not limited to evidence of rehabilitation, character references, and educational achievements, especially those items pertaining to the period of time between the applicant’s last criminal conviction and the consideration of the application for a national license.

(b) As used in paragraph (a) of this subsection (2), “criminal justice agency” means any court or any governmental agency or subunit of such agency that administers criminal justice pursuant to an executive order and that allocates a substantial part of its annual budget to the administration of criminal justice.

(c) At the time of filing an application for issuance or renewal of a medical Cannabis center license, medical Cannabis-infused product manufacturer license, or optional premises cultivation license, an applicant shall submit a set of his or her fingerprints and file personal history information concerning the applicant’s qualifications for a national license on forms prepared by the National Licensing Authority. The national or local licensing authority shall submit the fingerprints to the New Zealand bureau of investigation for the purpose of conducting fingerprint- based criminal history record checks. The New Zealand bureau of investigation shall forward the fingerprints to the federal bureau of investigation for the purpose of conducting fingerprint-based criminal history record checks. The national or local licensing authority 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 has previously submitted fingerprints for national licensing purposes may request that the fingerprints on file be used. The national or local licensing authority 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 national license pursuant to this article. The national or local licensing authority may verify any of the information an applicant is required to submit.

 

-Section 308. Restrictions for applications for new licenses.

 

(1) The national or a local licensing authority shall not receive or act upon an application for the issuance of a national or local license pursuant to this article:

(a) If the application for a national or local license concerns a particular location that is the same as or within one thousand feet of a location for which, within one year immediately preceding the date of the application, the state or a local licensing authority denied an application for the same class of license due to the nature of the use or other concern related to the location;

(b) 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;

(c) For a location in an area where the cultivation, manufacture, and sale of medical Cannabis as contemplated is not permitted under the applicable zoning laws of the local council;

(d) (I) If the building in which medical Cannabis is to be sold is located within one thousand feet of a school, an alcohol or drug treatment facility, seminary, or a residential child care facility. The provisions of this section shall not affect the renewal or reissuance of a license once granted or apply to licensed premises located or to be located on land owned by a local council, nor shall the provisions of this section apply to an existing licensed premises on land owned by the crown, or apply to a license in effect and actively doing business before said principal campus was constructed. The local licensing authority, may enact bylaws, by resolution, may vary the distance restrictions imposed by this subparagraph (I) for a license or may eliminate one or more types of schools, campuses, or facilities from the application of a distance restriction established by or pursuant to this subparagraph (I).

(II) The distances referred to in this paragraph (d) are to be computed by direct measurement from the nearest property line of the land used for a school or campus to the nearest portion of the building in which medical Cannabis is to be sold, using a route of direct pedestrian access.

(III) In addition to the requirements of section 303 (2), the local licensing authority shall consider the evidence and make a specific finding of fact as to whether the building in which the medical Cannabis is to be sold is located within any distance restrictions established by or pursuant to this paragraph (d).

 

-Section 309. Transfer of ownership.

 

(1) A national or local license granted under the provisions of this article shall not be transferable except as provided in this section, but this section shall not prevent a change of location as provided in section 310 (13).

(2) For a transfer of ownership, a license holder shall apply to the national and local licensing authorities on forms prepared and furnished by the National Licensing Authority. In determining whether to permit a transfer of ownership, the national and local licensing authorities shall consider only the requirements of this article, any rules promulgated by the National Licensing Authority, and any other local restrictions. The local licensing authority may hold a hearing on the application for transfer of ownership. The local licensing authority shall not hold a hearing pursuant to this subsection (2) until the local licensing authority has posted a notice of hearing in the manner described in section 302 (2) on the licensed medical Cannabis center premises for a period of ten days and has provided notice of the hearing to the applicant at least ten days prior to the hearing. Any transfer of ownership hearing by the National Licensing Authority shall be held in compliance with the requirements specified in section 302.

 

-Section 310. Licensing in general.

 

(1) This article authorizes a county, municipality, or city and county to prohibit the operation of medical Cannabis centers, optional premises cultivation operations, and medical Cannabis-infused products manufacturers’ licenses and to enact reasonable regulations or other restrictions applicable to medical Cannabis centers, optional premises cultivation licenses, and medical Cannabis-infused products manufacturers’ licenses based on local government zoning, health, safety, and public welfare laws for the distribution of medical Cannabis that are more restrictive than this article.

(2) A medical Cannabis center, optional premises cultivation operation, or medical Cannabis-infused products manufacturer may not operate until it has been licensed by the local licensing authority and the National Licensing Authority pursuant to this article. In connection with a license, the applicant shall provide a complete and accurate list of all owners, officers, and employees who work at, manage, own, or are otherwise associated with the operation and shall provide a complete and accurate application as required by the National Licensing Authority.

(3) A medical Cannabis center, optional premises cultivation operation, or medical Cannabis-infused products manufacturer shall notify the National Licensing Authority in writing within ten days after an owner, officer, or employee ceases to work at, manage, own, or otherwise be associated with the operation. The owner, officer, or employee shall surrender his or her identification card to the National Licensing Authority on or before the date of the notification.

(4) A medical Cannabis center, optional premises cultivation operation, or medical Cannabis-infused products manufacturer shall notify the National Licensing Authority in writing of the name, address, and date of birth of an owner, officer, manager, or employee before the new owner, officer, or employee begins working at, managing, owning, or being associated with the operation. The owner, officer, manager, or employee shall pass a fingerprint-based criminal history record check as required by the National Licensing Authority and obtain the required identification prior to being associated with, managing, owning, or working at the operation.

(5) A medical Cannabis center, optional premises cultivation operation, or medical Cannabis-infused products manufacturer shall not acquire, possess, cultivate, deliver, transfer, transport, supply, or dispense Cannabis for any purpose except to assist patients.

(6) All officers, managers, and employees of a medical Cannabis center, optional premises cultivation operation, or medical Cannabis-infused products manufacturer shall be residents of New Zealand upon the date of their license application. An owner shall meet the residency requirements in section 307 (1) (m). A local licensing authority shall not issue a license provided for in this article until that share of the license application fee due to the crown has been received by the department of inland revenue. All licenses granted pursuant to this article shall be valid for a period not to exceed two years after the date of issuance unless revoked or suspended pursuant to this article or the rules promulgated pursuant to this article.

(7) Before granting a local or national license, the respective licensing authority may consider, except where this article specifically provides otherwise, the requirements of this article and any rules promulgated pursuant to this article, and all other reasonable restrictions that are or may be placed upon the licensee by the licensing authority. With respect to a second or additional license for the same licensee or the same owner of another licensed business pursuant to this article, each licensing authority shall consider the effect on competition of granting or denying the additional licenses to such licensee and shall not approve an application for a second or additional license that would have the effect of restraining competition.

(8) (a) Each license issued under this article 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 shall be required for each specific business or business entity and each geographical location.

(b) At all times, a licensee shall possess and maintain possession of the premises or optional premises for which the license is issued by ownership, lease, rental, or other arrangement for possession of the premises.

(9) (a) The licenses provided pursuant to this article shall specify the date of issuance, the period of licensure, the name of the licensee, and the premises or optional premises licensed. The licensee shall conspicuously place the license at all times on the licensed premises or optional premises.

(b) A local licensing authority shall not transfer location of or renew a license to sell medical Cannabis until the applicant for the license produces a license issued and granted by the National Licensing Authority covering the whole period for which a license or license renewal is sought.

(10) In computing any period of time prescribed by this article, the day of the act, event, or default from which the designated period of time begins to run shall not be included. Saturdays, Sundays, and legal holidays shall be counted as any other day.

(11) A licensee shall report each transfer or change of financial interest in the license to the national and local licensing authorities thirty days prior to any transfer or change pursuant to section 309. A report shall be required for transfers of capital stock of any corporation regardless of size.

(12) 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 national and local licensing authorities. The licensee shall report any change in manager to the national and local licensing authorities thirty days prior to the change pursuant to section 309.

(13) (a) A licensee may move his or her permanent location to any other place in the same municipality or city and county for which the license was originally granted, or in the same county if the license was granted for a place outside the corporate limits of a municipality or city and county, but it shall be unlawful to cultivate, manufacture, distribute, or sell medical Cannabis at any such place until permission to do so is granted by the national and local licensing authorities provided for in this article.

(b) In permitting a change of location, the national and local licensing authorities shall consider all reasonable restrictions that are or may be placed upon the new location by the local council, and any such change in location shall be in accordance with all requirements of this article and rules promulgated pursuant to this article.

 

-Section 311. License renewal.

 

(1) Ninety days prior to the expiration date of an existing license, the National Licensing Authority shall notify the licensee of the expiration date by first class mail at the licensee’s address of record with the National Licensing Authority. A licensee shall apply for the renewal of an existing license to the local licensing authority not less than forty-five days and to the National Licensing Authority not less than thirty days prior to the date of expiration. A local licensing authority shall not accept an application for renewal of a license after the date of expiration, except as provided in subsection (2) of this section. The National Licensing Authority may extend the expiration date of the license and accept a late application for renewal of a license provided that the applicant has filed a timely renewal application with the local licensing authority. All renewals filed with the local licensing authority and subsequently approved by the local licensing authority shall next be processed by the National Licensing Authority. The national or the local licensing authority, in its discretion, subject to the requirements of this subsection (1) and subsection (2) of this section and based upon reasonable grounds, may waive the forty-five-day or thirty-day time requirements set forth in this subsection (1). The local licensing authority may hold a hearing on the application for renewal only if the licensee has had complaints filed against it, has a history of violations, or there are allegations against the licensee that would constitute good cause. The local licensing authority shall not hold a renewal hearing provided for by this subsection (1) for a medical Cannabis center until it has posted a notice of hearing on the licensed medical Cannabis center premises in the manner described in section 302 (2) for a period of ten days and provided notice to the applicant at least ten days prior to the hearing. The local licensing authority may refuse to renew any license for good cause, subject to judicial review.

(2) (a) Notwithstanding the provisions of subsection (1) of this section, a licensee whose license has been expired for not more than ninety days may file a late renewal application upon the payment of a nonrefundable late application fee of five hundred dollars to the local licensing authority. A licensee who files a late renewal application and pays the requisite fees may continue to operate until both the national and local licensing authorities have taken final action to approve or deny the licensee’s late renewal application unless the national or local licensing authority summarily suspends the license.

(b) The national and local licensing authorities may not accept a late renewal application more than ninety days after the expiration of a licensee’s permanent annual license. A licensee whose permanent annual license has been expired for more than ninety days shall not cultivate, manufacture, distribute, or sell any medical Cannabis until all required licenses have been obtained.

(c) Notwithstanding the amount specified for the late application fee in paragraph (a) of this subsection (2), the National Licensing Authority by rule or as otherwise provided by law may reduce the amount of the fee if necessary, by reducing the uncommitted reserves of the fund to which all or any portion of the fee is credited. After the uncommitted reserves of the fund are sufficiently reduced, the National Licensing Authority by rule or as otherwise provided by law may increase the amount of the fee.

 

-Section 312. Inactive licenses.

 

The national or local 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 year.

 

-Section 313. Unlawful financial assistance.

 

(1) The National Licensing Authority, by rule and regulation, 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 article.

(2) A person shall not have an unreported financial interest in a license pursuant to this article unless that person has undergone a fingerprint-based criminal history record check as provided for by the National Licensing Authority in its rules; except that this subsection (2) shall not apply to banks, savings and loan associations, or industrial banks supervised and regulated by an agency of the government, or to mortgagees, or to stockholders, directors, or officers thereof.

(3) This section is intended to prohibit and prevent the control of the outlets for the sale of medical Cannabis by a person or party other than the persons licensed pursuant to the provisions of this article.

 

Part 4 License Types

 

  1. Classes of licenses.

 

(1) For the purpose of regulating the cultivation, manufacture, distribution, and sale of medical Cannabis, the National Licensing Authority in its discretion, upon application in the prescribed form made to it, may issue and grant to the applicant a license from any of the following classes, subject to the provisions and restrictions provided by this article:

(a) Medical Cannabis center license;
(b) Optional premises cultivation license;
(c) Medical Cannabis-infused products manufacturing license; and

(d) 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 National Licensing Authority. The National Licensing Authority may take any action with respect to a registration pursuant to this article as it may with respect to a license pursuant to this article, in accordance with the procedures established pursuant to this article.

(2) All persons licensed pursuant to this article shall collect sales tax on all sales made pursuant to the licensing activities.

(3) A national chartered bank or a credit union may loan money to any person licensed pursuant to this article for the operation of a licensed business.

 

-Section 402. Medical Cannabis center license.

 

(1) A medical Cannabis center license shall be issued only to a person selling medical Cannabis pursuant to the terms and conditions of this article.

(2) (a) Notwithstanding the provisions of this section, a medical Cannabis center licensee may also sell medical Cannabis-infused products that are prepackaged and labeled so as to clearly indicate all of the following:

(I) That the product contains medical Cannabis;

(II) That the product is manufactured without any regulatory oversight for health, safety, or efficacy; and

(III) That there may be health risks associated with the consumption or use of the product.

(b) A medical Cannabis licensee may contract with a medical Cannabis-infused products manufacturing licensee for the manufacture of medical Cannabis-infused products upon a medical Cannabis-infused products manufacturing licensee’s licensed premises.

(3) Every person selling medical Cannabis as provided for in this article shall sell only medical Cannabis grown in its medical Cannabis optional premises licensed pursuant to this article. In addition to medical Cannabis, a medical Cannabis center may sell no more than six immature plants to a patient; except that a medical Cannabis center may sell more than six immature plants, but may not exceed half the recommended plant count, to a patient who has been recommended an expanded plant count by his or her recommending physician. A medical Cannabis center may sell immature plants to a primary caregiver, another medical Cannabis center, or a medical Cannabis-infused product manufacturer pursuant to rules promulgated by the National Licensing Authority. The provisions of this subsection (3) shall not apply to medical Cannabis-infused products.

(4) Notwithstanding the requirements of subsection (3) of this section to the contrary, a medical Cannabis licensee may purchase not more than thirty percent of its total on-hand inventory of medical Cannabis from another licensed medical Cannabis center in New Zealand. A medical Cannabis center may sell no more than thirty percent of its total on-hand inventory to another New Zealand licensed medical Cannabis licensee; except that the director of the division that regulates medical Cannabis may grant a temporary waiver:

(a) To a medical Cannabis center or applicant if the medical Cannabis center or applicant suffers a catastrophic event related to its inventory; or

(b) To a new medical Cannabis center licensee for a period not to exceed ninety days so the new licensee can cultivate the necessary medical Cannabis to comply with this subsection (4).

(5) Prior to initiating a sale, the employee of the medical Cannabis center making the sale shall verify that the purchaser has a valid registration card issued pursuant to section 106, or a copy of a current and complete new application for the medical Cannabis registry administered by the Ministry of Health that is documented by a certified mail return receipt as having been submitted to the Ministry of Health within the preceding thirty-five days, and a valid picture identification card that matches the name on the registration card. A purchaser may not provide a copy of a renewal application in order to make a purchase at a medical Cannabis center. A purchaser may only make a purchase using a copy of his or her application from 8 am to 5 pm, Monday through Friday. If the purchaser presents a copy of his or her application at the time of purchase, the employee must contact the Ministry of Health to determine whether the purchaser’s application has been denied. The employee shall not complete the transaction if the purchaser’s application has been denied. If the purchaser’s application has been denied, the employee shall be authorised to confiscate the purchaser’s copy of the application and the documentation of the certified mail return receipt, if possible, and shall, within seventy-two hours after the confiscation, turn it over to the Ministry of Health or police. The failure to confiscate the copy of the application and document of the certified mail return receipt or to turn it over to the Ministry of Health or police within seventy-two hours after the confiscation shall not constitute a criminal offense.

(5.5) Transactions for the sale of medical Cannabis or a medical Cannabis-infused product at a medical Cannabis center may be completed by using an automated machine that is in a restricted access area of the center if the machine complies with the rules promulgated by the National Licensing Authority regarding the transaction of sale of product at a medical Cannabis center and the transaction complies with subsection (5) of this section.

(6) A medical Cannabis center may provide a sample of its products to a laboratory that has an occupational license from the National Licensing Authority for testing and research purposes. The laboratory may develop, test, and produce medical Cannabis-based products. The laboratory may contract method or product development with a licensed medical Cannabis center or licensed medical Cannabis infused-product manufacturer. The National Licensing Authority shall promulgate rules pursuant to its authority in section 202, 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. A laboratory that has an occupational license from the National Licensing Authority for testing purposes shall not have any interest in a licensed medical Cannabis center or a licensed medical Cannabis-infused products manufacturer.

(7) All medical Cannabis sold at a licensed medical Cannabis center shall be labeled with a list of all chemical additives, including but not limited to nonorganic pesticides, herbicides, and fertilizers, that were used in the cultivation and the production of the medical Cannabis.

(8) A licensed medical Cannabis center shall comply with all provisions of the Bill of Rights as the provisions relate to persons with disabilities.

(9) Notwithstanding the provisions of section 901 (4) (m), a medical Cannabis center may sell below cost or donate to a patient who has been designated indigent by the Ministry of Health or who is in hospice care:

(a) Medical Cannabis; or

(b) No more than eight immature plants; except that a medical Cannabis center may sell or donate more than eight immature plants, but may not exceed half the recommended plant count, to a patient who has been recommended an expanded plant count by his or her recommending physician; or

(c) Medical Cannabis-infused products to patients.

 

-Section 403. Optional premises cultivation license.

 

(1) An optional premises cultivation license may be issued only to a person licensed pursuant to section 402 (1) or 404 (1) who grows and cultivates medical Cannabis at an additional licensed premises contiguous or not contiguous with the licensed premises of the person’s medical Cannabis center license or the person’s medical Cannabis-infused products manufacturing license.

(2) Optional premises cultivation licenses may be combined in a common area solely for the purposes of growing and cultivating medical Cannabis and used to provide medical Cannabis to more than one licensed medical Cannabis center or licensed medical Cannabis-infused product manufacturer so long as the holder of the optional premise cultivation license is also a common owner of each licensed medical Cannabis center or licensed medical Cannabis-infused product manufacturer to which medical Cannabis is provided. In accordance with promulgated rules relating to plant and product tracking requirements, each optional premises cultivation licensee shall supply medical Cannabis only to its associated licensed medical Cannabis centers or licensed medical Cannabis-infused product manufacturers.

 

-Section 404. Medical Cannabis-infused products manufacturing license.

 

(1) A medical Cannabis-infused products manufacturing license may be issued to a person who manufactures medical Cannabis-infused products, pursuant to the terms and conditions of this article.

(2) Medical Cannabis-infused products shall be prepared on a licensed premises that is used exclusively for the manufacture and preparation of medical Cannabis-infused products and using equipment that is used exclusively for the manufacture and preparation of medical Cannabis-infused products.

(3) A medical Cannabis-infused products licensee shall have a written agreement or contract with a medical Cannabis center licensee, which contract shall at a minimum set forth the total amount of medical Cannabis obtained from a medical Cannabis center licensee to be used in the manufacturing process, and the total amount of medical Cannabis-infused products to be manufactured from the medical Cannabis obtained from the medical Cannabis center. A medical Cannabis-infused products licensee shall not use medical Cannabis from more than five different medical Cannabis centers in the production of one medical Cannabis-infused product. The medical Cannabis-infused products manufacturing licensee may sell its products to any licensed medical Cannabis center.

(4) All licensed premises on which medical Cannabis-infused products are manufactured shall meet the sanitary standards for medical Cannabis-infused product preparation promulgated pursuant to section -202 (2) (a) (XII).

(5) The medical Cannabis-infused product shall be sealed and conspicuously labeled in compliance with this article and any rules promulgated pursuant to this article. The labeling of medical Cannabis-infused products is a matter of nationwide concern.

(6) Medical Cannabis-infused products may not be consumed on a premises licensed pursuant to this article.

(7) Notwithstanding any other provision of law, sales of medical Cannabis-infused products shall not be exempt from GST.

(8) A medical Cannabis-infused products licensee that has an optional premises cultivation license shall not sell any of the medical Cannabis that it cultivates except for the medical Cannabis that is contained in medical Cannabis-infused products.

(9) (a) A medical Cannabis-infused products licensee may not have more than six hundred medical Cannabis plants on its premises or at its optional premises cultivation operation; except that the director of the division that regulates medical Cannabis may grant a waiver in excess of six hundred Cannabis plants based on the consideration of the factors in paragraph (b) of this subsection (9).

(b) The director of the division that regulates medical Cannabis shall consider the following factors in determining whether to grant the waiver described in paragraph (a) of this subsection (9):

(I) The nature of the products manufactured;

(II) The business need;

(III) Existing business contracts with licensed medical Cannabis centers for the production of medical Cannabis-infused products; and

(IV) The ability to contract with licensed medical Cannabis centers for the production of medical Cannabis-infused products.

(10) A medical Cannabis-infused products manufacturer may provide a sample of its products to a laboratory that has an occupational license from the National Licensing Authority for testing and research purposes. The National Licensing Authority shall promulgate rules pursuant to its authority in section 202 (1) (b), related to acceptable testing and research practices. A laboratory that has an occupational license from the National Licensing Authority for testing purposes shall not have any interest in a licensed medical Cannabis center or a licensed medical Cannabis-infused products manufacturer.

 

Part 5 Fees

 

-Section 501. Medical Cannabis license cash fund.

 

(1) All moneys collected by the National Licensing Authority pursuant to this article shall be transmitted to the treasurer, who shall credit the same to the medical Cannabis license cash fund, which fund is hereby created and referred to in this section as the “fund”. The moneys in the fund shall be subject to annual appropriation by Parliament to the department of inland revenue for the direct and indirect costs associated with implementing this article. Any moneys in the fund not expended for the purpose of this article may be invested by the state treasurer as provided by law. All interest and income derived from the investment and deposit of moneys in the fund shall be credited to the fund. Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year shall remain in the fund and shall not be credited or transferred to the general consolidated fund or another fund.

(2) The executive director of the department of inland revenue by rule or as otherwise provided by law may reduce the amount of one or more of the fees if necessary, to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director by rule or as otherwise provided by law may increase the amount of one or more of the fees.

(3) (a) The National Licensing Authority shall establish fees for processing the following types of applications, licenses, notices, or reports required to be submitted to the National Licensing Authority:

(I) Applications for licenses listed in section 401 and rules promulgated pursuant to that section;

(II) Applications to change location pursuant to section 310 and rules promulgated pursuant to that section;

(III) Applications for transfer of ownership pursuant to section -10 and rules promulgated pursuant to that section;

(IV) License renewal and expired license renewal applications pursuant to section 311; and

(V) Licenses as listed in section 401.

(b) The amounts of such fees, when added to the other fees transferred to the fund pursuant to this section, shall reflect the actual direct and indirect costs of the National Licensing Authority in the administration and enforcement of this article so that the fees avoid exceeding the statutory limit on uncommitted reserves in administrative agency cash funds as set forth in section 402 (3).

(c) The National Licensing Authority may charge applicants licensed under this article a fee for the cost of each fingerprint analysis and background investigation undertaken to qualify new officers, directors, managers, or employees.

(d) At least annually, the National Licensing Authority shall review the amounts of the fees and, if necessary, adjust the amounts to reflect the direct and indirect costs of the National Licensing Authority.

(4) Except as provided in subsection (5) of this section, the National Licensing Authority shall establish a basic fee that shall be paid at the time of service of any subpoena upon the National Licensing Authority, plus a fee for meals and a fee for mileage, for each mile actually and necessarily traveled in going to and returning from the place named in the subpoena. If the person named in the subpoena is required to attend the place named in the subpoena for more than one day, there shall be paid, in advance, a sum to be established by the National Licensing Authority for each day of attendance to cover the expenses of the person named in the subpoena.

(5) The subpoena fee established pursuant to subsection (4) of this section shall not be applicable to any governmental agency.

 

-Section 502. Fees — allocation.

 

(1) Except as otherwise provided, all fees and fines provided for by this article shall be paid to the department of inland revenue, which shall transmit the fees to the state treasurer. The state treasurer shall credit the fees to the medical Cannabis license cash fund created in section 501.

(2) The expenditures of the National Licensing Authority shall be paid out of appropriations from the medical Cannabis license cash fund created in section 501.

 

-Section 503. Local license fees.

 

(1) Each application for a local license provided for in this article filed with a local licensing authority shall be accompanied by an application fee in an amount determined by the local licensing authority.

(2) License fees as determined by the local licensing authority shall be paid to the treasurer of the local council where the licensed premises is located in advance of the approval, denial, or renewal of the license.

 

Part 6 Disciplinary Actions

 

-Section 601. Suspension — revocation — fines.

 

(1) In addition to any other sanctions prescribed by this article or rules promulgated pursuant to this article, the National Licensing Authority or a local licensing authority has the power, on its own motion or on complaint, after investigation and opportunity for a public hearing at which the licensee shall be afforded an opportunity to be heard, to suspend or revoke a license issued by the respective authority for a violation by the licensee or by any of the agents or employees of the licensee of the provisions of this article, or any of the rules promulgated pursuant to this article, or of any of the terms, conditions, or provisions of the license issued by the national or local licensing authority. The National Licensing Authority or a local licensing authority has the power 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 a hearing that the national or local licensing authority is authorised to conduct.

(2) The national or local 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. Except in the case of a summary suspension, a suspension shall not be for a longer period than six months. If a license is suspended or revoked, a part of the fees paid therefore shall not be returned to the licensee. Any license or permit may be summarily suspended by the issuing licensing authority without notice pending any prosecution, investigation, or public hearing pursuant to the terms of section 24-4-104 (4), C.R.S. [CHECKLAW] [CHECKLAW] Nothing in this section shall prevent the summary suspension of a license pursuant to section 24-4-104 (4), C.R.S. [CHECKLAW] [CHECKLAW] Each patient registered with a medical Cannabis center that has had its license summarily suspended may immediately transfer his or her primary center to another licensed medical Cannabis center.

(3) (a) Whenever a decision of the National Licensing Authority or a local licensing authority suspending a license for fourteen days or less becomes final, the licensee may, before the operative date of the suspension, petition 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 national or local licensing authority may, in its sole discretion, stay the proposed suspension and cause any investigation to be made which it deems desirable and may, in its sole discretion, grant the petition if the national or local licensing authority is satisfied that:

(I) The public welfare and morals would 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;

(II) The books and records of the licensee are kept in such a manner that the loss of sales that the licensee would have suffered had the suspension gone into effect can be determined with reasonable accuracy; and

(III) The licensee has not had his or her license suspended or revoked, nor had any suspension stayed by payment of a fine, during the two years immediately preceding the date of the motion or complaint that resulted in a final decision to suspend the license or permit.

(b) The fine accepted shall be not less than five hundred dollars nor more than one hundred thousand dollars.

(c) Payment of a fine pursuant to the provisions of this subsection (3) shall be in the form of cash or in the form of a certified check or cashier’s check made payable to the national or local licensing authority, whichever is appropriate.

(4) Upon payment of the fine pursuant to subsection (3) of this section, the national or local licensing authority shall enter its further order permanently staying the imposition of the suspension. If the fine is paid to a local licensing authority, the governing body of the authority shall cause the moneys to be paid into the general consolidated fund of the local licensing authority. Fines paid to the National Licensing Authority pursuant to subsection (3) of this section shall be transmitted to the national treasurer, who shall credit the same to the medical Cannabis license cash fund created in section 501.

(5) In connection with a petition pursuant to subsection (3) of this section, the authority of the national or local 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 national or local 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 shall go into effect on the operative date finally set by the national or local licensing authority.

(7) Each local licensing authority shall report all actions taken to impose fines, suspensions, and revocations to the National Licensing Authority in a manner required by the National Licensing Authority. No later than January 15 of each year, the National Licensing Authority shall compile a report of the preceding year’s actions in which fines, suspensions, or revocations were imposed by local licensing authorities and by the National Licensing Authority. The National Licensing Authority shall file one copy of the report with the registrar of Parliament, and one copy in the parliament library.

 

-Section 602. Disposition of unauthorised Cannabis or Cannabis-infused products and related materials.

 

(1) The provisions of this section shall apply in addition to any criminal, civil, or administrative penalties and in addition to any other penalties prescribed by this article or any rules promulgated pursuant to this article. Any provisions in this article related to law enforcement shall be considered a cumulative right of the people in the enforcement of the criminal laws.

(2) Every licensee licensed under this article shall be deemed, by virtue of applying for, holding, or renewing such person’s license, to have expressly consented to the procedures set forth in this section.

(3) A national or local agency shall not be required to cultivate or care for any Cannabis or Cannabis-infused product belonging to or seized from a licensee. A national or local agency shall not be authorised to sell Cannabis, medical or otherwise.

(4) If the national or local licensing authority issues a final agency order imposing a disciplinary action against a licensee pursuant to section 601, then, in addition to any other remedies, the licensing authority’s final agency order may specify that some or all of the licensee’s Cannabis or Cannabis-infused product is not medical Cannabis or a medical Cannabis-infused product and is an illegal controlled substance. The order may further specify that the licensee shall lose any interest in any of the Cannabis or Cannabis-infused product even if the Cannabis or Cannabis-infused product previously qualified as medical Cannabis or a medical Cannabis-infused product. The final agency order may direct the destruction of any such Cannabis and Cannabis-infused products, except as provided in subsections (5) and (6) of this section. The authorised destruction may include the incidental destruction of any containers, equipment, supplies, and other property associated with the Cannabis or Cannabis-infused product.

(5) Following the issuance of a final agency order by the licensing authority imposing a disciplinary action against a licensee and ordering destruction authorised by subsection (4) of this section, a licensee shall have fifteen days within which to file a petition for stay of agency action with the district court. The action shall be filed in the city and county of Denver, which shall be deemed to be the residence of the National Licensing Authority for purposes of this section. The licensee shall serve the petition in accordance with the rules of civil procedure. The district court shall promptly rule upon the petition and shall determine whether the licensee has a substantial likelihood of success on judicial review so as to warrant delay of the destruction authorised 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 so delayed pursuant to judicial order, the court shall issue an order setting forth terms and conditions pursuant to which the licensee may maintain the Cannabis and Cannabis-infused product pending judicial review, and prohibiting the licensee from using or distributing the Cannabis or Cannabis-infused product pending the review. The licensing authority shall not carry out the destruction authorised by subsection (4) of this section until fifteen days have passed without the filing of a petition for stay of agency action, or until the court has issued an order denying stay of agency action pursuant to this subsection (5).

(6) The licensing authority shall not carry out the destruction authorised by subsection (4) of this section until it has notified the district attorney for the judicial district in which the Cannabis is located to determine whether the Cannabis or product constitutes evidence in a criminal proceeding such that it should not be destroyed, and until fifteen days have passed from the date of the issuance of such notice.

(7) On or before January 1, 2012*****, the National Licensing Authority shall promulgate rules governing the implementation of this section.

 

Part 7
 Inspection Of Books And Records

 

-Section 701. Inspection procedures.

 

(1) Each licensee shall keep a complete set of all records necessary to show fully the business transactions of the licensee, all of which shall be open at all times during business hours for the inspection and examination of the National Licensing Authority or its duly authorised representatives. The National Licensing Authority may require any licensee to furnish such information as it considers necessary for the proper administration of this article 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 National Licensing Authority who shall likewise have access to all books and records of the licensee, and the expense thereof shall be paid by the licensee.

(2) The licensed premises, including any places of storage where medical Cannabis is grown, stored, cultivated, sold, or dispensed, shall be subject to inspection by the national or local licensing authorities and their investigators, during all business hours and other times of apparent activity, for the purpose of inspection or investigation. For examination of any inventory or books and records required to be kept by the licensees, access shall be required during business hours. Where any part of the licensed premises consists of a locked area, upon demand to the licensee, such area shall be made available for inspection without delay, and, upon request by authorised representatives of the national or local licensing authority, the licensee shall 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 immediately prior tax years.

 

Part 8 Judicial Review

 

-Section 801. Judicial review.

 

Decisions by the National Licensing Authority or a local licensing authority shall be subject to judicial review pursuant to section 24-4-106, C.R.S. [CHECKLAW]

 

Part 9
 Unlawful Acts — Enforcement

 

-Section 901. Unlawful acts — exceptions.

 

(1) Except as otherwise provided in this article, it is unlawful for a person:

(a) To consume medical Cannabis in a licensed medical Cannabis center, and it shall be unlawful for a medical Cannabis licensee to allow medical Cannabis to be consumed upon its licensed premises;

(b) With knowledge, to permit or fail to prevent the use of his or her registry identification by any other person for the unlawful purchasing of medical Cannabis;

(c) and (d) (Deleted by amendment, L. 2011, (HB 11-1043), ch. 266, p. 1210, 16, effective July 1, 2011.)

(2) It is unlawful for a person to buy, sell, transfer, give away, or acquire medical Cannabis except as allowed pursuant to this article.

(3) It is unlawful for a person licensed pursuant to this article:

(a) To be within a limited-access area unless the person’s license badge is displayed as required by this article, except as provided in section -701;

(b) To fail to designate areas of ingress and egress for limited-access areas and post signs in conspicuous locations as required by this article;

(c) To fail to report a transfer required by section -310 (11); or

(d) To fail to report the name of or a change in managers as required by section 310 (12).

(4) It is unlawful for any person licensed to sell medical Cannabis pursuant to this article:

(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 that is designed to

Appeal to minors;

(c) To provide public premises, or any portion thereof, for the purpose of consumption of medical Cannabis in any form;

(d) (I) To sell medical Cannabis to a person not licensed pursuant to this article or to a person not able to produce a valid patient registry identification card, unless the person has a copy of a current and complete new application for the medical Cannabis registry administered by the Ministry of Health that is documented by a certified mail return receipt as having been submitted to the Ministry of Health within the preceding thirty-five days and the employee assisting the person has contacted the Ministry of Health and, as a result, determined the person’s application has not been denied. Notwithstanding any provision in this subparagraph (I) to the contrary, a person under eighteen years of age shall not be employed to sell or dispense medical Cannabis at a medical Cannabis center or grow or cultivate medical Cannabis at an optional premises cultivation operation.

(II) If a licensee or a licensee’s employee has reasonable cause to believe that a person is exhibiting a fraudulent patient registry identification card in an attempt to obtain medical Cannabis, the licensee or employee shall be authorised to confiscate the fraudulent patient registry identification card, if possible, and shall, within seventy-two hours after the confiscation, turn it over to the Ministry of Health or police. The failure to confiscate the fraudulent patient registry identification card or to turn it over to the Ministry of Health or police within seventy-two hours after the confiscation shall not constitute a criminal offense.

(e) To possess more than eight medical Cannabis plants and two ounces of medical Cannabis for each patient who has registered the center as his or her primary center except that a medical Cannabis center may have an amount that exceeds the eight-plant and two-ounce product per patient limit if the center sells to patients that are authorised to have more than eight plants and two ounces of product. In the case of a patient authorised to exceed the eight-plant and two-ounce limit, the center shall obtain documentation from the patient’s physician that the patient needs more than eight plants and two ounces of product.

(f) To offer for sale or solicit an order for medical Cannabis in person except within the licensed premises;

(g) To have in possession or upon the licensed premises any medical Cannabis, the sale of which is not permitted by the license;

(h) To buy medical Cannabis from a person not licensed to sell as provided by this article;

(i) To sell medical Cannabis except in the permanent location specifically designated in the license for sale;

(j) To have on the licensed premises any medical Cannabis or Cannabis paraphernalia that shows evidence of the medical Cannabis having been consumed or partially consumed;

(k) To require a medical Cannabis center or medical Cannabis center with an optional premises cultivation license to make delivery to any premises other than the specific licensed premises where the medical Cannabis is to be sold;

(l) To sell, serve, or distribute medical Cannabis at any time other than between the hours of 8 a.m. And 7 p.m. Monday through Sunday;

(m) To violate the provisions of section 6-2-103 or 6-2-105, C.R.S. [CHECKLAW];

(n) To burn or otherwise destroy Cannabis or any substance containing Cannabis for the purpose of evading an investigation or preventing seizure; or

(o) To abandon a licensed premises or otherwise cease operation without notifying the state and local licensing authorities at least forty-eight hours in advance and without accounting for and forfeiting to the National Licensing Authority for destruction all Cannabis or products containing Cannabis.

(5) Except as provided in sections -402 (4), -403, and -404, it is unlawful for a medical Cannabis center, medical Cannabis-infused products manufacturing operation with an optional premises cultivation license, or medical Cannabis center with an optional premises cultivation license to sell, deliver, or cause to be delivered to a licensee any medical Cannabis not grown upon its licensed premises, or for a licensee or medical Cannabis center with an optional premises cultivation license or medical Cannabis-infused products manufacturing operation with an optional premises cultivation license to sell, possess, or permit sale of medical Cannabis not grown upon its licensed premises. A violation of the provisions of this subsection (5) by a licensee shall be grounds for the immediate revocation of the license granted under this article.

(6) It shall be unlawful for a physician who makes patient referrals to a licensed medical Cannabis center to receive anything of value from the medical Cannabis center licensee or its agents, servants, officers, or owners or anyone financially interested in the licensee, and it shall be unlawful for a licensee licensed pursuant to this article to offer anything of value to a physician for making patient referrals to the licensed medical Cannabis center.

(6.5) A peace officer or a police shall not use any patient information to make traffic stops pursuant to section 42-4-1302, C.R.S. [CHECKLAW]

(7) A person who commits any acts that are unlawful pursuant to this article or the rules authorised and adopted pursuant to this article commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501, C.R.S. [CHECKLAW], except for violations that would also constitute a violation of title 18, C.R.S. [CHECKLAW], which violation shall be charged and prosecuted pursuant to title 18, C.R.S. [CHECKLAW]

 

Part 10 Sunset Review

 

-Section 1001. Sunset review — article repeal.

 

(1) This article is repealed, effective July 1, 2015 [CHECKDATE].

(2) Prior to the repeal of this article, the department of regulatory agencies shall conduct a sunset review as described in section 24-34-104 (8), C.R.S. [CHECKLAW]


Section [1] Personal use and regulation of Cannabis

(1) Purpose and findings.

(2) Definitions.

(3) Personal use of Cannabis.

(4) Lawful operation of Cannabis-related facilities.

(5) Regulation of Cannabis.

(6) Employers, driving, minors and control of property.

(7) Medical Cannabis provisions unaffected.

(8) Self-executing, severability, conflicting provisions.

(9) Effective date.

Section [2] New Zealand Medical Cannabis Code

IRD Tax Enforcement

Part 1 New Zealand Medical Cannabis Code And Tax Regulations

Part 2
 National Licensing Authority

Part 3
 National And Local Government Licensing

Part 4 License Types

Part 5 Fees

Part 6 Disciplinary Actions

Part 7
 Inspection Of Books And Records

Part 8 Judicial Review

Part 9
 Unlawful Acts — Enforcement

Part 10 Sunset Review

To Do List For This Document

 

To Do List For This Document

The public is invited to solicit the help of legal minds and interested parties to literally perform live edits and suggestions to Tom Atkinson’s (aka Tomachi) The Colorado Conversion live published Google doc.

Specific notice in this To Do List is called to edits to the following subjects:

    • NZ Medical Cannabis Code – pages 11 – 40

 

  • This is the bulk of the work still to be done

 

      • Please mark the text with [CHECK followed by the class of issue then ]
      • For example I’ve used checklaw and checkdate
      • At the very least use just [CHECK] use of square helps search

 

  • [CHECKLAW]

 

      • Search this keyword in doc to find what are likely references to US state and federal laws and codes
      • Replace with the relevant NZ legal terms and proper nouns

 

  • [CHECKDATE]

 

    • Search this keyword in doc to find what are likely references to US state and federal laws and codes
    • Replace with the relevant NZ legal terms and proper nouns
  • The Tax Lolly Scramble
    • This is apparent in the opening intro text, and Section 1 Part 5 (d)
    • Search “student loan” to find these
    • Currently first $20 million to student loans next $20M to schools.