2015-2016 Bill 672: Medical Marijuana Program Act - South Carolina Legislature Online

1 South Carolina General Assembly 2 121st Session, 2015-2016 3 4 S. 672 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Senators Davis and Hutto 10 Document Path: l:\council\bills\bh\26280vr15.docx 11 Companion/Similar bill(s): 4037 12 13 Introduced in the Senate on April 16, 2015 14 Currently residing in the Senate Committee on Medical Affairs 15 16 Summary: Medical Marijuana Program Act 17 18 19 HISTORY OF LEGISLATIVE ACTIONS 20 21 Date Body Action Description with journal page number 22 4/16/2015 Senate Introduced and read first time ( Senate Journalpage 3) 23 4/16/2015 Senate Referred to Committee on Medical Affairs ( Senate Journalpage 3) 24 25 View the latest legislative information at the website 26 27 28 VERSIONS OF THIS BILL 29 30 4/16/2015 31 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 12 1976, TO ENACT THE “SOUTH CAROLINA MEDICAL 13 MARIJUANA PROGRAM ACT” BY ADDING ARTICLE 20 TO 14 CHAPTER 53, TITLE 44 SO AS TO AUTHORIZE THE 15 PALLIATIVE USE OF MARIJUANA BY CERTAIN 16 INDIVIDUALS WITH CERTAIN DISEASES AND MEDICAL 17 CONDITIONS; TO AUTHORIZE CERTAIN INDIVIDUALS TO 18 ACT AS DESIGNATED CAREGIVERS IN ORDER TO ASSIST 19 QUALIFYING PATIENTS WITH THE PALLIATIVE USE OF 20 MARIJUANA; TO AUTHORIZE CERTAIN MEDICAL 21 PROVIDERS TO RECOMMEND THE PALLIATIVE USE OF 22 MARIJUANA UNDER CERTAIN CONDITIONS; TO CREATE 23 A CONFIDENTIAL REGISTRY THROUGH WHICH TO ISSUE 24 IDENTIFICATION CARDS TO REGISTERED PATIENTS AND 25 REGISTERED CAREGIVERS; TO PROVIDE CERTAIN 26 DEFENSES AND OTHER PROTECTIONS TO, AMONG 27 OTHERS, REGISTERED PATIENTS, REGISTERED 28 CAREGIVERS, MEDICAL PROVIDERS, LICENSED 29 DISPENSARY AGENTS, LICENSED GROWERS, AGENTS 30 OF LICENSED PROCESSORS, AGENTS OF CERTIFIED 31 REVERSE DISTRIBUTORS, AND AGENTS OF CERTIFIED 32 LABORATORY TESTING FACILITIES; TO PROVIDE FOR 33 THE OPERATION OF DISPENSARIES, PROCESSORS, AND 34 GROWERS TO CULTIVATE, GROW, AND DISPENSE 35 MARIJUANA FOR PALLIATIVE PURPOSES; TO PROVIDE 36 FOR THE CERTIFICATION OF REVERSE DISTRIBUTORS 37 TO ENSURE SAFE DISPOSAL PRACTICES; TO PROVIDE 38 FOR THE DEVELOPMENT OF A SEEDTOSALE 39 ELECTRONIC MONITORING SYSTEM TO TRACK 40 MARIJUANA COMPONENTS FROM CULTIVATION TO 41 POINT OF SALE; TO REQUIRE TESTING OF MARIJUANA 42 PRODUCTS BEFORE SALE TO PROTECT PATIENT

[672] 2 1 HEALTH; TO PROVIDE FOR CERTIFICATION OF TESTING 2 LABORATORIES; TO ESTABLISH CERTAIN FEES; TO 3 CREATE CRIMINAL PENALTIES FOR VIOLATING THE 4 TERMS OF THE ARTICLE; AND FOR OTHER PURPOSES; 5 AND TO REPEAL ARTICLE 4, CHAPTER 53, TITLE 44 6 RELATING TO CONTROLLED SUBSTANCES 7 THERAPEUTIC RESEARCH. 8 9 Be it enacted by the General Assembly of the State of South 10 Carolina: 11 12 SECTION 1. Chapter 53, Title 44 of the 1976 Code is amended 13 by adding: 14 15 “Article 20 16 17 South Carolina Medical Marijuana Program 18 19 Section 44532010. As used in this article: 20 (1) ‘Batch’ means a lot or combination of lots that are 21 converted by a licensed processor into a concentrated form such as 22 oil. 23 (2) ‘Cultivation’ means planting, propagating, cultivating, 24 growing, and harvesting. 25 (3) ‘Department’ means the South Carolina Department of 26 Health and Environmental Control. 27 (4) ‘Designated caregiver’ means a person who possesses a 28 valid registry identification card issued pursuant to Section 29 44532090 authorizing the person to assist a qualifying patient with 30 the palliative use of marijuana. 31 (5) ‘Director’ means the Director of the South Carolina 32 Department of Health and Environmental Control. 33 (6) ‘Diversion’ means the obtaining or transferring of 34 marijuana from a legal use or possession to an illegal use or 35 possession by a person not authorized to use or possess marijuana 36 pursuant to this article. 37 (7) ‘Divert’ means an act that constitutes diversion. 38 (8) ‘Edible forms of marijuana’ means food items made with 39 marijuana or infused with marijuana oils. 40 (9) ‘Licensed dispensary’ or ‘dispensary’ means a forprofit or 41 nonprofit corporation incorporated under the laws of this State and 42 licensed pursuant to Section 44532180.

[672] 3 1 (10) ‘Licensed dispensary agent’ or ‘dispensary agent’ means a 2 person licensed as a dispensary agent pursuant to Section 3 44532170. 4 (11) ‘Licensed grower’ or ‘grower’ means a person or forprofit 5 or nonprofit corporation incorporated under the laws of this State 6 and licensed as a grower pursuant to Section 44532190. 7 (12) ‘Licensed processor’ means a forprofit or nonprofit 8 corporation incorporated under the laws of this State and licensed 9 to process marijuana into a concentrated form such as oil pursuant 10 to Section 44532185. 11 (13) ‘Lot’ means a plant or group of plants of the same strain 12 harvested on the same day. 13 (14) ‘Marijuana’ means all parts of any plant of the cannabis 14 genus of plants, whether growing or not; the seeds of the plant; the 15 resin extracted from any part of the plant; and every compound, 16 manufacture, salt, derivative, mixture, or preparation of the plant, 17 its seeds or resin. ‘Marijuana’ does not mean the mature stalks of 18 the plant; fiber produced from the stalks; oil or cake made from the 19 seeds of the plant; any other compound, manufacture, salt, 20 derivative, mixture, or preparation of a mature stalk, except the 21 resin extracted from the plant; and the fiber, oil, or cake, or the 22 sterilized seeds of the plant which are incapable of germination. 23 (15) ‘Medical recommendation’ means the written 24 documentation submitted by a provider to a patient with whom the 25 provider has a providerpatient relationship for the purpose of 26 obtaining a registry identification card from the department 27 verifying that the patient is a qualifying patient that could benefit 28 from the palliative use of marijuana. 29 (16) ‘Organically grown marijuana’ means marijuana that is 30 grown without the use of synthetic fertilizers or synthetic 31 pesticides and not modified by synthetic growth regulators. 32 (17) ‘Palliative use’ means the acquisition, possession, 33 cultivation, preparation, use, delivery, transfer, or distribution of 34 marijuana or paraphernalia relating to marijuana, including the 35 transfer of marijuana and paraphernalia relating to marijuana from 36 the patient’s designated caregiver to the qualifying patient, to 37 alleviate a qualifying patient’s symptoms of a qualifying medical 38 condition or the effects of symptoms, but does not include use of 39 marijuana by a person other than the qualifying patient. 40 (18) ‘Paraphernalia related to marijuana’ means equipment, 41 products, and materials of any kind which are used, intended for 42 use, or designed for use in planting, propagating, cultivating, 43 growing, harvesting, manufacturing, compounding, converting,

[672] 4 1 producing, processing, preparing, testing, analyzing, packaging, 2 storing, containing or concealing, or ingesting, inhaling, or 3 otherwise introducing into the human body, any marijuana for 4 palliative use. 5 (19) ‘Provider’ means a physician licensed to prescribe drugs 6 pursuant to Chapter 47, Title 40 and who possesses a registration 7 from the United States Drug Enforcement Administration to 8 prescribe controlled substances. 9 (20) ‘Providerpatient relationship’ means a providerpatient 10 treatment relationship as part of which the provider has conducted 11 an inperson exam and taken a medical history of, provided a 12 diagnosis to, and recommended a treatment plan for a patient 13 relating to a qualifying medical condition. 14 (21) ‘Qualifying medical condition’ means: 15 (a) cancer, glaucoma, positive status for human 16 immunodeficiency virus, acquired immune deficiency syndrome, 17 hepatitis C currently receiving antiviral treatment, amyotrophic 18 lateral sclerosis, muscular dystrophy, severe fibromyalgia, 19 arachnoiditis , tarlov cysts, hydromyelia, syringomyelia, 20 rheumatoid arthritis, fibrous dysplasia, Arnoldchiari malformation 21 and syringomyelia, spinocerebellar ataxia, Parkinson’s disease, 22 Tourette syndrome, myoclonus, dystonia, reflex sympathetic 23 dystrophy, complex regional pain syndromes type I and type II, 24 causalgia, neurofibromatosis, chronic inflammatory demyelinating 25 polyneuropathy, Sjogren’s syndrome, lupus, autism spectrum 26 disorder, interstitial cystitis, myasthenia graves, hydrocephalus, 27 nailpatella syndrome, residual limb pain, seizures, post traumatic 28 stress disorder, Crohn’s disease, agitation of Alzheimer’s disease, 29 multiple sclerosis, chronic pancreatitis, spinal cord injury or 30 disease, traumatic brain injury and post concussion syndrome, or 31 an injury that significantly interferes with daily activities as 32 documented by the patient’s provider; lateral sclerosis, or muscular 33 dystrophy; 34 (b) a severely debilitating or terminal medical condition or 35 its treatment that has produced elevated intraocular pressure, 36 cachexia, chemotherapyinduced anorexia, wasting syndrome, 37 severe pain that has not responded to previously prescribed 38 medication or surgical measures or for which other treatment 39 options produced serious side effects, constant or severe nausea, 40 moderate to severe vomiting, seizures, or severe, persistent muscle 41 spasms; and 42 (c) any other medical condition not included in items (a) or 43 (b) that the department determines, upon the written request of a

[672] 5 1 provider who furnishes a medical recommendation to the 2 department, is severely debilitating or terminal. 3 (22) ‘Qualifying patient’ means a person who has been 4 diagnosed by a provider as having a qualifying medical condition 5 and who possesses a valid registry identification card issued 6 pursuant to Section 44532090. 7 (23) ‘Resident’ means a person who has been a resident of 8 South Carolina for at least thirty days before the date of 9 application and has maintained his principal place of abode in 10 South Carolina for at least thirty days before the date of 11 application. 12 (24) ‘Registry identification card’ means the nontransferable 13 confidential registry identification card issued by the department 14 pursuant to Section 44532085 that identifies a person as a 15 qualifying patient or a designated caregiver. 16 (25) ‘Reverse distributor’ means an entity registered with the 17 United States Drug Enforcement Agency authorized to receive 18 controlled substances. 19 (26) ‘Usable marijuana’ means the dried leaves and flowers of 20 the marijuana plant, and any mixtures or preparations of the leaves 21 and flowers, that are appropriate for the palliative use of 22 marijuana, but does not mean the seeds, stalks, or roots of the 23 marijuana plant. 24 (27) ‘Vaporization’ means the inhalation of marijuana without 25 the combustion of the marijuana. 26 27 Section 44532020. (A) A qualifying patient is presumed to be 28 lawfully in possession of marijuana if the person possesses a valid 29 registry identification card issued pursuant to Section 44532090 30 indicating he is a qualifying patient with a qualifying medical 31 condition and possesses an amount of marijuana that does not 32 exceed two oneounce packages of marijuana in leaf form, one 33 ounce of cannabis oil concentrate, or eight ounces of diluted 34 cannabis oil. 35 (B) A designated caregiver is presumed to be lawfully in 36 possession of marijuana for the purpose of assisting a qualifying 37 patient with the palliative use of marijuana if the person possesses 38 a valid registry identification card issued pursuant to Section 39 44532090 indicating he is a designated caregiver and possesses an 40 amount of marijuana that does not exceed two oneounce packages 41 of marijuana in leaf form, one ounce of cannabis oil concentrate, or 42 eight ounces of diluted cannabis oil.

[672] 6 1 (C) If a qualifying patient or designated caregiver is found to be 2 in possession of marijuana in an amount in excess of the quantities 3 permitted in subsections (A) and (B), the excess amount is subject 4 to seizure by law enforcement and must not be returned. 5 (D) The presumptions provided for in subsections (A) and (B) 6 may be rebutted by evidence that conduct related to the use of 7 marijuana was not for palliative purposes as allowed pursuant to 8 this article. 9 10 Section 44532030. (A) A qualifying patient or designated 11 caregiver may purchase marijuana or paraphernalia related to 12 marijuana for palliative use pursuant to this article from a licensed 13 dispensary. 14 (B) A designated caregiver may purchase marijuana or 15 paraphernalia related to marijuana to assist a qualifying patient 16 with the palliative use of marijuana pursuant to this article from a 17 licensed dispensary. 18 19 Section 44532040. A qualifying patient may engage in the 20 palliative use of marijuana on privately owned property only with 21 written permission of the property owner. If the property owner 22 prohibits marijuana consumption, the prohibition includes both 23 permanent and temporary occupants. 24 25 Section 44532050. (A) A person entitled to custody of, or 26 visitation or parenting time with, a minor must not be denied these 27 rights for conduct allowed pursuant to this article. 28 (B) There is no presumption of child abuse or neglect for 29 conduct allowed pursuant to this article. 30 31 Section 44532060. For purposes of medical care, including 32 organ transplants, a qualifying patient’s use of marijuana pursuant 33 to this article is considered the authorized use of a medication 34 taken at the direction of a provider and does not constitute the use 35 of an illegal substance. 36 37 Section 44532070. (A) A qualifying patient is not subject to 38 arrest by state or local law enforcement, prosecution or penalty 39 under state or local law, or the denial of a right or privilege, for the 40 palliative use of marijuana pursuant to this article. 41 (B) A designated caregiver is not subject to arrest by state or 42 local law enforcement, prosecution or penalty under state or local 43 law, or the denial of a right or privilege, for assisting a qualifying

[672] 7 1 patient with the palliative use of marijuana pursuant to this article. 2 (C) A licensed dispensary agent is not subject to arrest by state 3 or local law enforcement, prosecution or penalty under state or 4 local law, or the denial of a right or privilege, for engaging in 5 conduct authorized pursuant to this article. 6 (D) A person who is a licensed grower is not subject to arrest 7 by state or local law enforcement, prosecution or penalty under 8 state or local law, or the denial of a right or privilege, for engaging 9 in conduct authorized pursuant to this article. 10 (E) A licensed processing agent is not subject to arrest by state 11 or local law enforcement, prosecution or penalty under state or 12 local law, or the denial of a right or privilege, for engaging in 13 conduct authorized by this article. 14 (F) A licensed laboratory agent or a licensed reverse 15 distribution agent is not subject to arrest by state or local law 16 enforcement, prosecution or penalty under state or local law, or the 17 denial of a right or privilege, for engaging in conduct authorized 18 by this article. 19 (G) A statechartered bank, a licensed attorney, or a certified 20 public accountant and its employees are not subject to arrest by 21 state or local law enforcement, prosecution or penalty under state 22 or local law, or the denial of a right or privilege, for engaging in 23 conduct authorized by this article. 24 (H) A person is not subject to arrest by state or local law 25 enforcement, prosecution or penalty under state or local law, or the 26 denial of a right or privilege for being in the presence or vicinity of 27 a qualifying patient engaged in the palliative use of marijuana, a 28 designated caregiver assisting a qualifying patient with the 29 palliative use of marijuana, or in the presence of a licensed 30 dispensary agent, a licensed processing agent, a licensed grower, 31 or a certified laboratory agent engaged in conduct authorized 32 pursuant to this article. 33 34 Section 44532080. A provider is not subject to arrest by state or 35 local law enforcement, prosecution or penalty under state or local 36 law, or the denial of a right or privilege including, but not limited 37 to, disciplinary action by the South Carolina Board of Medicine or 38 other occupational or professional licensing entity, for providing a 39 medical recommendation as authorized by Section 44532100. A 40 provider may not be sued for medical malpractice as a result of 41 recommending a qualifying patient’s palliative use of marijuana. 42 43 Section 44532085. The department is responsible for:

[672] 8 1 (1) developing and facilitating a process to review applications 2 submitted for issuance of registry identification cards for 3 qualifying patient and designated caregiver and for issuing, 4 denying, and revoking registry identification cards; and 5 (2) creating and maintaining a confidential registry that 6 contains: 7 (a) a qualifying patient’s name, mailing address, date of 8 birth, social security number, date of registry identification card 9 issuance and expiration, a random tendigit identification number, 10 the provider’s name and address, the medical recommendation 11 signed by the provider, the registry identification number for a 12 designated caregiver, if one, and the license number for a licensed 13 dispensary, if any; 14 (b) a designated caregiver’s name, mailing address, date of 15 birth, social security number, date of registry identification card 16 issuance and expiration, a random tendigit identification number, 17 the registry identification number for the qualifying patient for 18 whom the caregiver has been designated, if one, and the license 19 number of a licensed dispensary designated by the qualifying 20 patient; and 21 (c) the application and information submitted by a person 22 who applies for a registry identification card as a qualifying patient 23 or a designated caregiver, whether or not the department approves 24 or denies the application. 25 26 Section 44532090. (A)(1) In order to obtain a registry 27 identification card as a qualifying patient, a person must: 28 (a) be a resident of South Carolina; 29 (b) complete an application form provided by the 30 department; 31 (c) provide a copy of a South Carolina Law Enforcement 32 Division (SLED) criminal records check report that bears the 33 division stamp, for which the person must pay the costs, or a copy 34 of a valid South Carolina concealed weapons permit; 35 (d) submit a nonrefundable application fee of fifty dollars; 36 and 37 (e) pay an annual registration fee of twentyfive dollars. 38 (2) At a minimum, the application for the issuance of an 39 initial and renewal registry identification card must include: 40 (a) the applicant’s name, residential and mailing address, 41 and date of birth, unless the applicant is homeless in which case a 42 residential address is not required; 43 (b) the applicant’s social security number;

[672] 9 1 (c) a recent passportsized photograph of the applicant’s 2 face; 3 (d) the name, residential and mailing address, and 4 telephone number of the applicant’s provider; 5 (e) the medical recommendation signed by the provider; 6 (f) the name, residential and mailing address, and phone 7 number of the applicant’s proposed designated caregiver, if one; 8 (g) the name and street address of the applicant’s licensed 9 dispensary, if one; and 10 (h) a statement signed by the applicant agreeing not to 11 knowingly divert marijuana to anyone who is not allowed to 12 possess marijuana pursuant to this article and acknowledging that 13 knowing diversion of marijuana is a felony and, upon conviction, 14 results in revocation of the registry card and subjects the applicant 15 to a fine of not more than five thousand dollars or imprisonment of 16 not more than five years, or both. 17 (3) The department must not issue a person a registry 18 identification card as a qualifying patient if the person has been 19 convicted of, or pled guilty or nolo contendere to, a felony 20 drugrelated offense within the previous five years. 21 (4) A qualifying patient may designate only one designated 22 caregiver at any given time. Violation of this item is a 23 misdemeanor and, upon conviction, results in a fine of not more 24 than one thousand dollars or imprisonment of not more than one 25 year, or both. 26 (5) To prevent fraud and enhance patient safety, a registry 27 identification card must be printed with tamperresistant technology 28 and contain, at a minimum, the person’s name and address, 29 photograph, identification number, and the card’s issuance and 30 expiration dates. 31 (B)(1) In order to obtain a registry identification card as a 32 designated caregiver, a person must: 33 (a) be a resident of South Carolina who is at least 34 twentyone years of age; 35 (b) complete an application form provided by the 36 department; 37 (c) provide a copy of a SLED criminal records check 38 report that bears the division stamp, for which the person must pay 39 the costs, or a copy of a valid South Carolina concealed weapons 40 permit; 41 (d) submit a nonrefundable application fee of fifty dollars; 42 and 43 (e) pay an annual registration fee of twentyfive dollars.

[672] 10 1 (2) At a minimum, the application for the issuance of an 2 initial and renewal registry identification card must include: 3 (a) the applicant’s name, residential and mailing address, 4 and date of birth; 5 (b) the applicant’s social security number; 6 (c) a recent passportsized photograph of the applicant’s 7 face; 8 (d) the name, residential and mailing address, and 9 telephone number of the applicant’s qualifying patient, if one; 10 (e) the name and street address of the licensed dispensary 11 designated by the qualifying patient, if one; and 12 (f) a statement signed by the applicant agreeing not to 13 knowingly divert marijuana to anyone who is not allowed to 14 possess marijuana pursuant to this article and acknowledging that 15 knowing diversion of marijuana is a felony and, upon conviction, 16 results in revocation of the registry card and subjects the applicant 17 to a fine of not more than five thousand dollars or imprisonment of 18 not more than five years, or both. 19 (3) The department has the discretion not to issue a person a 20 registry identification card as a designated caregiver if the person 21 has been convicted of, or pled guilty or nolo contendere to, a 22 felony drugrelated offense within the previous five years. 23 (4) A designated caregiver may serve as the designated 24 caregiver for up to five qualifying patients at any given time. 25 Violation of this item is a misdemeanor and, upon conviction, 26 results in a fine of not more than one thousand dollars or 27 imprisonment of not more than one year, or both. 28 (5) To prevent fraud and enhance patient safety, a registry 29 identification card must be printed with tamperresistant technology 30 and contain, at a minimum, the person’s name and address, 31 photograph, identification number, and the card’s issuance and 32 expiration dates. 33 34 Section 44532100. The department shall develop a medical 35 recommendation form to be completed by a provider and 36 submitted by a person applying for a registry identification card as 37 a qualifying patient. The recommendation must include: 38 (1) the provider’s name, address, phone number, and medical 39 license number; 40 (2) an acknowledgement to be signed by the provider that sets 41 forth:

[672] 11 1 (a) the penalties for providing false information, including 2 the department’s right to notify the medical board or other similar 3 authority established pursuant to Chapter 47, Title 40; and 4 (b) definitions of: 5 (i) ‘providerpatient relationship’, as defined in Section 6 44532010; 7 (ii) ‘qualifying medical condition’, as defined in Section 8 44532010; and 9 (iii) ‘provider’, as defined in Section 44532010; and 10 (3) an affidavit for the provider to sign with the following 11 provisions: 12 (a) the provider and patient have a providerpatient 13 relationship; and 14 (b) the patient has a qualifying medical condition, 15 identifying the patient’s condition, and that the symptoms or side 16 effects might benefit from the palliative use of marijuana. 17 18 Section 44532110. A valid registry identification card, or its 19 equivalent, that is issued pursuant to the laws of another state, 20 district, territory, commonwealth, or insular possession of the 21 United States that allows, in the jurisdiction of issuance, a person 22 to possess marijuana for palliative use, has the same force and 23 effect as a valid registry identification card issued by the 24 department in this State, provided the person: 25 (1) produces a statement from a physician or other medical 26 provider stating that the person has a qualifying medical condition 27 as defined in Section 44532010; and 28 (2) does not cultivate or purchase marijuana in this State or 29 obtain marijuana from a licensed dispensary in this State or from a 30 South Carolina resident who is a qualifying patient. 31 32 Section 44532120. (A) Information maintained by the 33 department related to the registry identification card is considered 34 protected health information that may not be released pursuant to 35 state and federal confidentiality statutes including, but not limited 36 to, the Health Insurance Portability and Accountability Act, as 37 amended. 38 (B) Information maintained by the department related to the 39 registry identification card is not public information subject to 40 access pursuant to the South Carolina Freedom of Information Act. 41 (C) If a person discloses information contained in the registry 42 in violation of this article, the person must be fined not more than 43 one thousand dollars. Subsequent violations are a misdemeanor

[672] 12 1 and, upon conviction, the person must be fined not more than five 2 thousand dollars or imprisoned not more than one year, or both. 3 4 Section 44532130. A person may not have access to information 5 related to the registry identification card, except for an authorized 6 employee of the department in the course of his official duties and 7 a state or local law enforcement officer who has detained or 8 arrested a person who claims to be a qualifying patient, a 9 designated caregiver, a licensed dispensary, a licensed dispensary 10 agent, or licensed grower engaged in conduct authorized in this 11 article. 12 13 Section 44532140. (A) If a state or local law enforcement 14 officer submits an affidavit to the department affirming that he has 15 probable cause to believe marijuana is possessed at a specific 16 address in violation of this article, an authorized employee for the 17 department may disclose whether the location is associated with a 18 qualifying patient, designated caregiver, licensed dispensary, 19 licensed dispensary agent, or licensed grower. 20 (B) If a state or local law enforcement officer submits an 21 affidavit to the department affirming that he has probable cause to 22 believe a person possesses marijuana, an authorized employee for 23 the department may disclose whether the person is a qualifying 24 patient, designated caregiver, licensed dispensary, licensed 25 dispensary agent, or licensed grower if the law enforcement officer 26 provides the person’s name and address or name and date of birth. 27 (C) Counsel for the department may notify a law enforcement 28 officer about falsified or fraudulent information submitted to the 29 department when counsel has made a legal determination that there 30 is probable cause to believe the information is false or falsified. 31 32 Section 44532150. (A) The department may revoke the registry 33 identification card of a qualifying patient or designated caregiver 34 for violation of this article or department regulations. The 35 qualifying patient or designated caregiver also is subject to other 36 penalties established by law. 37 (B) A person whose registry identification card is revoked may 38 request a hearing in the Administrative Law Court within thirty 39 days of receipt of written notification of the revocation. 40 41 Section 44532160. (A) The department may not issue a registry 42 identification card to a person under eighteen years of age who is 43 applying as a qualifying patient unless:

[672] 13 1 (1) a custodial parent or legal guardian responsible for health 2 care decisions of the minor submits a medical recommendation 3 from a provider; 4 (2) the provider has explained the potential risks and 5 benefits of the palliative use of marijuana to the custodial parent or 6 legal guardian responsible for health care decisions of the minor; 7 (3) the custodial parent or legal guardian responsible for 8 health care decisions of the minor consents in writing to: 9 (a) allow the minor’s palliative use of marijuana; and 10 (b) serve as the minor’s designated caregiver and control 11 the acquisition of marijuana and the frequency of the palliative use 12 of marijuana by the minor; and 13 (4) the custodial parent or legal guardian responsible for 14 health care decisions of the minor completes an application in 15 accordance with the requirements of Section 44532090 on behalf 16 of the minor. 17 (B) The department may not issue a registry identification card 18 to an incapacitated person who is applying as a qualifying patient 19 unless: 20 (1) a person with the legal authority to make health care 21 decisions on behalf of the incapacitated person submits a medical 22 recommendation from two providers documenting the 23 incapacitated person’s qualifying medical condition and other 24 required information; 25 (2) the provider has explained the potential risks and 26 benefits of the palliative use of marijuana to the person with the 27 legal authority to make health care decisions on behalf of the 28 incapacitated person; 29 (3) the person with the legal authority to make health care 30 decisions on behalf of the incapacitated person consents in writing 31 to: 32 (a) allow the incapacitated person’s palliative use of 33 marijuana; and 34 (b) serve as the incapacitated person’s designated 35 caregiver and control the acquisition of the marijuana and the 36 frequency of the palliative use of marijuana by the incapacitated 37 person; and 38 (4) the person with the legal authority to make health care 39 decisions for the incapacitated person completes an application in 40 accordance with the requirements of Section 44532090 on behalf 41 of the incapacitated person. 42

[672] 14 1 Section 44532165. The department shall develop a process to 2 allow for the operation of licensed dispensaries, licensed grow 3 facilities, and licensed processors, as well as for the licensing of 4 their agents pursuant to the provisions of this article. 5 6 Section 44532170. (A) In order to be licensed as a dispensary 7 agent, a person must: 8 (1) be a resident of South Carolina as defined in this article; 9 (2) complete an application form provided by the 10 department; 11 (3) provide a copy of a SLED criminal records check report 12 that bears the division stamp, for which the person must pay the 13 costs, or a copy of a valid South Carolina concealed weapons 14 permit; and 15 (4) submit a nonrefundable application fee of five thousand 16 dollars. 17 (B) At a minimum, the application must include: 18 (1) the applicant’s name, residential and mailing address, 19 and date of birth; 20 (2) the applicant’s social security number; 21 (3) a recent passportsized photograph of the applicant’s face; 22 and 23 (4) a statement signed by the applicant agreeing not to 24 knowingly divert marijuana to anyone who is not allowed to 25 possess marijuana pursuant to this article and acknowledging that 26 knowing diversion of marijuana is a felony and, upon conviction, 27 results in revocation of the registry card and subjects the applicant 28 to a fine of not more than five thousand dollars or imprisonment of 29 not more than five years, or both. 30 (C) The department has the discretion not to issue a person a 31 dispensary agent license if the person has been convicted of, or 32 pled guilty or nolo contendere to, a felony drugrelated offense 33 within the previous five years. 34 35 Section 44532180. (A) In order to be licensed as a dispensary, 36 a forprofit or nonprofit corporation must submit: 37 (1) a completed application form provided by the 38 department; 39 (2) a nonrefundable application fee of five thousand dollars; 40 (3) sufficient proof of net worth of one hundred thousand 41 dollars; and 42 (4) on renewal, a financial statement reviewed by a licensed 43 certified public accountant or a licensed public accountant in

[672] 15 1 accordance with Generally Accepted Accounting Principles 2 (GAAP), including all disclosures required by GAAP. 3 (B) At a minimum, the application form must include: 4 (1) the legal name and physical address of the proposed 5 dispensary; 6 (2) the name and date of birth of each principal officer and 7 board member of the proposed dispensary with a copy of a SLED 8 criminal records check report or a copy of a valid South Carolina 9 concealed weapons permit for each officer and board member paid 10 for by the person or dispensary; 11 (3) the physical address of a proposed facility to be operated 12 by the applicant pursuant to Section 44532210, if one; and 13 (4) operating procedures for the proposed dispensary to 14 ensure accurate recordkeeping and adequate security measures. 15 16 Section 44532185. (A) In order to be licensed as a processor, a 17 forprofit or nonprofit corporation must submit: 18 (1) a completed application form provided by the 19 department; 20 (2) a nonrefundable application fee of five thousand dollars; 21 (3) sufficient proof of net worth of one hundred thousand 22 dollars; and 23 (4) on renewal, a financial statement reviewed by a licensed 24 certified public accountant or a licensed public accountant in 25 accordance with GAAP, including all disclosures required by 26 GAAP. 27 (B) At a minimum, the application form must include: 28 (1) the legal name and physical address of the proposed 29 processor; 30 (2) the name and date of birth of each principal officer and 31 board member of the proposed processor with a copy of a SLED 32 criminal records check report or a copy of a valid South Carolina 33 concealed weapons permit for each officer and board member paid 34 for by the person or processor; 35 (3) the physical address of a proposed facility to be operated 36 by the applicant pursuant to Section 44532210, if one; and 37 (4) operating procedures for the proposed processor to 38 ensure accurate recordkeeping and adequate security measures. 39 40 Section 44532190. (A) In order to be licensed as a grower, a 41 person or forprofit or nonprofit corporation must submit: 42 (1) a completed application form provided by the 43 department;

[672] 16 1 (2) a nonrefundable application fee of five thousand dollars; 2 (3) sufficient proof of net worth of one hundred thousand 3 dollars; 4 (4) information required by the department to demonstrate 5 that the applicant has appropriate expertise in agriculture and is 6 qualified to cultivate marijuana and to sell, deliver, transport, or 7 distribute marijuana solely for use pursuant to this article; 8 (5) on renewal, a financial statement reviewed by a licensed 9 certified public accountant or a licensed public accountant in 10 accordance with GAAP, including all disclosures required by 11 GAAP; 12 (6) if a person, proof of residency; and 13 (7)(a) if a person, a copy of a SLED criminal records check 14 report, for which the person must pay the costs, or a copy of a 15 valid South Carolina concealed weapons permit; and 16 (b) if a corporation, the name and date of birth of each 17 principal officer and board member with a copy of a SLED 18 criminal records check report or a copy of a valid South Carolina 19 concealed weapons permit for each officer and board member paid 20 for by the person or the grow facility. 21 (B) At a minimum, the application for a person must include: 22 (1) the applicant’s name, residential and mailing address, 23 and date of birth; 24 (2) the applicant’s social security number; 25 (3) a recent passportsized photograph of the applicant’s face; 26 (4) a statement signed by the applicant agreeing not to 27 knowingly divert marijuana to anyone who is not allowed to 28 possess marijuana pursuant to this article and acknowledging that 29 knowing diversion of marijuana is a felony and, upon conviction, 30 results in revocation of the registry card and subjects the applicant 31 to a fine of not more than five thousand dollars or imprisonment of 32 not more than five years, or both; and 33 (5) operating procedures of the proposed grower to ensure 34 accurate recordkeeping and adequate security measures. 35 (C) At a minimum, the application for a forprofit or nonprofit 36 corporation must include: 37 (1) the legal name and address of the proposed grower; 38 (2) the name and date of birth of each principal officer and 39 board member of the proposed grower; 40 (3) the physical address of a proposed facility to be used by 41 the applicant pursuant to Section 44532210, if one; and 42 (4) operating procedures of the proposed grower to ensure 43 accurate recordkeeping and adequate security measures.

[672] 17 1 (D) The department has the discretion not to issue a person a 2 grower’s license if the person has been convicted of, or pled guilty 3 or nolo contendere to, a felony drugrelated offense within the 4 previous five years. 5 6 Section 44532200. (A) To ensure the safe and secure disposal 7 of unused marijuana components resulting from cultivation, 8 processing, dispensing, and use of marijuana pursuant to this 9 article, the department shall establish standards for and certify one 10 or more reverse distributors. 11 (B) In order to be certified as a reverse distributor, a forprofit or 12 nonprofit corporation shall submit: 13 (1) a completed application form provided by the 14 department; 15 (2) a nonrefundable application fee of five thousand dollars; 16 (3) sufficient proof of net worth of one hundred thousand 17 dollars; 18 (4) detailed plans for ensuring the safe and secure disposal 19 of unused marijuana components cultivated, processed, dispensed, 20 and used pursuant to this article; and 21 (5) information required by the department to demonstrate 22 that the applicant has appropriate knowledge and expertise in 23 controlled substances, public health, environmental protection, and 24 in any other subject matter required by the department; 25 (6) on renewal, a financial statement reviewed by a licensed 26 certified public accountant or a licensed public accountant in 27 accordance with GAAP, including all disclosures required by 28 GAAP. 29 (C) At a minimum, the application form must include: 30 (1) the legal name and physical address of the proposed 31 reverse distributor with a copy of a SLED criminal records check 32 report or a copy of a valid South Carolina concealed weapons 33 permit; 34 (2) the name and date of birth of each principal officer and 35 board member of the proposed reverse distributor with a copy of a 36 SLED criminal records check report or a valid South Carolina 37 concealed weapons permit for each officer and board member paid 38 for by the person or reverse distributor; 39 (3) the physical address of the proposed reverse distributor’s 40 disposal facility; and 41 (4) operating procedures for the proposed reverse distributor 42 to ensure accurate recordkeeping and adequate security measures.

[672] 18 1 (D) A reverse distributor shall develop a process to facilitate 2 the reverse distribution of unused marijuana components from 3 dispensaries, growers, processors, and testing laboratories to safely 4 dispose of all unused marijuana components. A dispensary, 5 dispensary agent, grower, processor, and laboratory testing facility 6 shall comply with the requirements of a certified reverse 7 distributor and the department before disposing of any unused 8 marijuana component. A dispensary, dispensary agent, grower, 9 processor, or testing laboratory that knowingly violates a 10 requirement of a reverse distributor or department regulations 11 relating to reverse distribution is guilty of a felony and, upon 12 conviction, is subject to a fine of not more than five thousand 13 dollars or imprisonment of not more than five years, or both. 14 (E) A reverse distributor shall create alternatives for collecting 15 unused marijuana components and paraphernalia relating to 16 marijuana from qualifying patients and designated caregivers for 17 safe disposal, which may include takeback events, mailback 18 programs, and collection receptacle locations. A licensed 19 dispensary may administer mailback programs and maintain 20 collection receptacles. 21 22 Section 44532210. Licensed growers and licensed processors 23 are authorized to have a facility for the cultivation and processing 24 of the marijuana plant, which must be a secure enclosed facility 25 equipped with locks or other security devices that permit access 26 only by a cardholder allowed to cultivate or process the plants. 27 28 Section 44532220. A licensed grow facility, a licensed 29 processing facility, and a licensed dispensary shall remit to the 30 department an annual fee based on the size of the dispensary, the 31 grow facility, or the processing facility. A grow facility up to 32 twentyfive thousand square feet shall pay an annual fee of fifteen 33 thousand dollars. A grow facility between twentyfive thousand 34 one square feet and fifty thousand square feet shall pay an annual 35 fee of twentyfive thousand dollars. A processing facility up to ten 36 thousand square feet shall pay an annual fee of ten thousand 37 dollars. A dispensary up to five thousand square feet shall pay an 38 annual fee of five thousand dollars. 39 40 Section 44532230. The department shall develop a system to 41 track inventory, purchasing, and any other records required by the 42 department and shall promulgate implementing regulations. 43

[672] 19 1 Section 44532240. (A) To prevent diversion and protect public 2 safety, the department shall require the use of a single realtime 3 seedtosale tracking system used by both the licensees and the 4 department, which complies with Health Insurance Portability and 5 Accountability Act (HIPAA) guidelines, is hosted on a platform 6 that allows for dynamic allocation of resources, provides data 7 redundancy, and is capable of recovering from natural disasters 8 within hours. 9 (B) The department shall require that the system be capable of: 10 (1) tracking all plants, products, packages, patients, waste, 11 transfers, conversions, packages, sales, and returns, and with 12 unique identification numbers; 13 (2) tracking lot and batch information throughout the entire 14 chain of custody; 15 (3) tracking all product, conversions, and derivatives 16 throughout the entire seedtosale chain of custody; 17 (4) tracking plant, batch, and product destruction; 18 (5) tracking transportation of product; 19 (6) performing complete batch recall tracking capabilities 20 that must be able to clearly identify all of the following details 21 relating to the specific batch subject to the recall: 22 (a) all sold product; 23 (b) product available for sale (product that is in finished 24 inventory, but not sold); 25 (c) product that is in the transfer process; 26 (d) work in progress (product that is being converted); and 27 (e) raw material (product that is in the postharvest 28 process, such as drying, trimming, and curing); 29 (7) reporting and tracking loss, theft, or diversion of product 30 containing marijuana; 31 (8) reporting and tracking all inventory discrepancies to the 32 department; 33 (9) reporting and tracking patient response to medication 34 efficacy; 35 (10) reporting and tracking all sales and refunds to the 36 department; 37 (11) tracking and enforcing patient purchase limits as set forth 38 in this article; 39 (12) receiving testing results electronically from the licensed 40 testing facility via a secure application program interface (API) 41 into the seedtosale tracking system and directly attaching the 42 testing results to the source batch and/or sample; 43 (13) restricting the altering of test results by the operator;

[672] 20 1 (14) restricting product sales to a qualified patient, or 2 designated caregiver, of product that has not passed the required 3 tests; 4 (15) restricting patients from designating multiple primary 5 caregivers simultaneously; 6 (16) restricting physicians from providing additional patient 7 recommendations; 8 (17) providing the department with realtime access to the 9 database; 10 (18) providing realtime analytics to the department regarding 11 key performance indicators including, but not limited to: 12 (a) total daily sales; 13 (b) total plants in production; 14 (c) total patients assigned to each dispensary and/or grow 15 facility; 16 (d) total plants destroyed; and 17 (e) total inventory adjustments; and 18 (19) providing other information specified by the department. 19 20 Section 44532250. (A) The department shall require, at a 21 minimum, routine testing of the product by both a licensed grower 22 and a licensed processor. 23 (B) A licensed grower shall test each strain’s cannabidiol 24 profile at least three times a year with the first test conducted on 25 the first harvested lot. 26 (C) A licensed processor shall test each extraction batch. 27 28 Section 44532260. (A) The department shall establish 29 standards for and certify one or more private and independent 30 testing laboratories to test marijuana that is to be sold in the State. 31 All marijuanaderived products, before transport or sale, must be 32 sampled by a certified testing laboratory. 33 (B) A testing laboratory is responsible for selecting, picking up, 34 and testing product samples and must be able to determine 35 accurately the concentration of THC and cannabidiol, whether the 36 testing material is organic or nonorganic, moisture content, 37 potency analysis, foreign matter inspection, microbiological 38 screening, residual solvent testing, the presence and identification 39 of fungi, including molds, the presence and concentration of 40 fertilizers and other nutrients, and any other determinations 41 required by the department.

[672] 21 1 (C) A certified testing laboratory shall report the results of all 2 testing required by the department to the department’s electronic 3 monitoring system. 4 5 Section 44532270. All items sold at a licensed dispensary must 6 be properly labeled. The label must comply with state laws and 7 regulations and, at a minimum, must include: 8 (1) the name and the physical address of the licensed 9 dispensary; 10 (2) the name of the product being sold; 11 (3) the percentage of tetrahydrocannabinol (THC) and the 12 percentage of cannabidiol (CBD) within a profile tolerance range 13 of ten percent; 14 (4) the name and the address of the licensed grower or the 15 licensed processor; and 16 (5) a conspicuous statement printed in all capital letters and in 17 a color that provides a clear contrast to the background that reads: 18 ‘ NOT FOR RESALE. KEEP OUT OF THE REACH OF 19 CHILDREN AND ANIMALS’. 20 21 Section 44532280. (A) It is not unlawful for a licensed grower, 22 licensed dispensary, or licensed processor to: 23 (1) possess, plant, propagate, cultivate, grow, harvest, 24 produce, process, manufacture, compound, convert, prepare, pack, 25 repack, or store marijuana; 26 (2) deliver, sell, supply, transfer, or transport marijuana, 27 paraphernalia related to marijuana, and educational materials to 28 licensed growers and licensed dispensaries; 29 (3) deliver, transfer, or transport marijuana to a reverse 30 distributor; and 31 (4) purchase or otherwise acquire marijuana from a licensed 32 grower. 33 (B) It is not unlawful for a licensed dispensary to sell marijuana 34 or paraphernalia related to marijuana to a qualifying patient or 35 designated caregiver in accordance with the requirements of this 36 article. 37 38 Section 44532300. A licensed dispensary, a licensed grower, a 39 licensed processor, a certified reverse distributor, or a certified 40 testing laboratory is subject to inspection by the department. 41 During an inspection, the department may review the dispensary, 42 grower, processor, reverse distributor, or testing laboratory 43 facility’s records required pursuant to this article and department

[672] 22 1 regulations. Records must track patientspecific and 2 caregiverspecific information by registry identification number to 3 protect confidentiality. 4 5 Section 44532310. (A) The department may revoke the license 6 of a dispensary, dispensary agent, grower, or processor and the 7 certification of the reverse distributor or testing laboratory as a 8 result of violation of this article or department regulations. 9 (B) The department shall create a tiered structure for 10 identification, investigation, and resolution of potential violations 11 of this article. 12 (C) Operators of dispensaries, cultivation facilities, and 13 processing facilities must be granted a reasonable resolution period 14 established by the department to implement corrective actions 15 acceptable to the department. 16 (D) The department shall create a progressive penalty structure 17 for violations of this article. 18 19 Section 44532320. Marijuana used by qualifying patients is 20 subject to the tax imposed pursuant to Article 25, Chapter 21, Title 21 12. 22 23 Section 44532330. Nothing in this article may be construed to 24 require: 25 (1) a health insurance provider, health care plan, or medical 26 assistance program to be liable for or reimburse a claim for the 27 palliative use of marijuana; 28 (2) a person or entity in lawful possession of property to allow 29 a guest, client, customer, or other visitor to engage in the palliative 30 use of marijuana while on the property; 31 (3) an employer to accommodate the palliative use of 32 marijuana at his place of employment; or 33 (4) a jail, detention center, correctional facility, or other type of 34 penal institution to allow the palliative use of marijuana on its 35 premises. 36 37 Section 44532340. The department shall provide a report to the 38 General Assembly by December thirtyfirst of each year addressing 39 the effectiveness of this program and recommendations for any 40 changes to the program. 41 42 Section 44532350. Subject to Chapter 35, Title 11, the South 43 Carolina Consolidated Procurement Code, the department is

[672] 23 1 authorized to procure services of qualified contractors to assist the 2 department in implementing this article, including testing, 3 auditing, inspection, registry management, diversion control, and 4 other compliance services.” 5 6 SECTION 2. Article 4, Chapter 53, Title 44 of the 1976 Code is 7 repealed. 8 9 SECTION 3. The repeal or amendment by this act of any law, 10 whether temporary or permanent or civil or criminal, does not 11 affect pending actions, rights, duties, or liabilities founded thereon, 12 or alter, discharge, release or extinguish any penalty, forfeiture, or 13 liability incurred under the repealed or amended law, unless the 14 repealed or amended provision shall so expressly provide. After 15 the effective date of this act, all laws repealed or amended by this 16 act must be taken and treated as remaining in full force and effect 17 for the purpose of sustaining any pending or vested right, civil 18 action, special proceeding, criminal prosecution, or appeal existing 19 as of the effective date of this act, and for the enforcement of 20 rights, duties, penalties, forfeitures, and liabilities as they stood 21 under the repealed or amended laws. 22 23 SECTION 4. If any section, subsection, paragraph, subparagraph, 24 sentence, clause, phrase, or word of this act is for any reason held 25 to be unconstitutional or invalid, such holding shall not affect the 26 constitutionality or validity of the remaining portions of this act, 27 the General Assembly hereby declaring that it would have passed 28 this act, and each and every section, subsection, paragraph, 29 subparagraph, sentence, clause, phrase, and word thereof, 30 irrespective of the fact that any one or more other sections, 31 subsections, paragraphs, subparagraphs, sentences, clauses, 32 phrases, or words hereof may be declared to be unconstitutional, 33 invalid, or otherwise ineffective. 34 35 SECTION 5. This act takes effect upon approval by the 36 Governor. 37 XX 38

[672] 24