Bill
Number: S.B. 1121
Gowan Floor Amendment
Reference to: APPROPRIATIONS Committee amendment
Amendment drafted by: Leg Council
FLOOR AMENDMENT EXPLANATION
Social Equity Ownership Program (Program)
1. Removes the requirement that the Department of Health Services (DHS) issue the 26 additional marijuana establishment licenses to qualified entities for the Program by December 31, 2021.
2. Requires DHS, before adopting any rules relating to the creation and implementation of the Program, to submit a report on the proposed Program to the Joint Legislative Audit Committee.
3. Removes the requirement that Program licenses be issued as follows:
a) 7 licenses to companies that are at least 40 percent owned by a nonprofit corporation that has been incorporated for at least five years and that provides at least four out of eight specified programs to communities disproportionally impacted by the enforcement of previous marijuana laws; and
b) 19 licenses to either individuals from a community disproportionally impacted by the enforcement of previous marijuana laws or companies that are at least 25 percent owned by an individual from a community disproportionally impacted by enforcement of previous marijuana laws.
4. Removes the requirement that Program licenses be issued by lottery to qualified applicants.
5. Removes the prohibition on a Program license being transferred to anyone other than another qualified Program applicant.
6. Removes the prohibition on DHS charging an application fee of more than $2,500 for a Program applicant.
7. Removes the requirement that DHS require each Program applicant to demonstrate that the applicant has at least $500,000 in liquid capital.
8. Removes the requirement that DHS provide a marijuana facility agent training program on regulatory compliance to licensees operating under the Program.
9. Removes the requirement that a city, town or county allow at least one marijuana establishment Program license to operate within its jurisdiction.
Marijuana Product Tracking and Labeling
10. Requires the system for tracking marijuana and marijuana products to be developed by DHS by December 31, 2022.
11. Prohibits the tracking system from tracking the sale of marijuana or marijuana products by a marijuana establishment to a consumer.
12. Removes the requirement that marijuana product packaging labels include a safety orange color band that is at least one-half inch wide.
13. Removes the requirement that DHS approve all marijuana or marijuana product labels and packages before a marijuana establishment can use the label or package.
14. Requires DHS, if it is determined that a marijuana or marijuana product package or label is attractive to minors or contains any inaccurate information, to require the marijuana establishment to revise the label or package.
15. Removes the requirement that marijuana product manufacturing and testing occur pursuant to written operating procedures.
Miscellaneous
16. Requires DHS to audit each marijuana establishment and marijuana testing facility at least every six months to determine compliance with applicable laws and rules.
17. Removes the requirement that DHS rules relating to the security of marijuana establishments and marijuana testing facilities require a security system with specified requirements for video cameras, digital video recorder storage and radio frequency identification name tags with tracking capabilities.
18. Removes the prohibition on combustible solvents in marijuana and marijuana products.
19. Makes technical and conforming changes.