Connecticut 2015 Regular Session

Connecticut House Bill HB07057 Compare Versions

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11 General Assembly Raised Bill No. 7057
22 January Session, 2015 LCO No. 6182
33 *06182_______FIN*
44 Referred to Committee on FINANCE, REVENUE AND BONDING
55 Introduced by:
66 (FIN)
77
88 General Assembly
99
1010 Raised Bill No. 7057
1111
1212 January Session, 2015
1313
1414 LCO No. 6182
1515
1616 *06182_______FIN*
1717
1818 Referred to Committee on FINANCE, REVENUE AND BONDING
1919
2020 Introduced by:
2121
2222 (FIN)
2323
2424 AN ACT ESTABLISHING A SURCHARGE ON PALLIATIVE MARIJUANA PRODUCERS AND EXPANDING THE CONDITIONS THAT QUALIFY FOR THE PALLIATIVE USE OF MARIJUANA.
2525
2626 Be it enacted by the Senate and House of Representatives in General Assembly convened:
2727
2828 Section 1. Section 21a-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):
2929
3030 As used in this section and sections [21a-408] 21a-408a to 21a-408o, inclusive, unless the context otherwise requires:
3131
3232 (1) "Controlled substance" means a controlled substance, as defined in section 21a-240, in schedule II, III, IV or V, except that "controlled substance" does not include marijuana prescribed for palliative use pursuant to this chapter;
3333
3434 [(1)] (2) "Cultivation" includes planting, propagating, cultivating, growing and harvesting;
3535
3636 [(2)] (3) "Debilitating medical condition" means (A) cancer, glaucoma, positive status for human immunodeficiency virus or acquired immune deficiency syndrome, Parkinson's disease, multiple sclerosis, damage to the nervous tissue of the spinal cord with objective neurological indication of intractable spasticity, epilepsy, cachexia, wasting syndrome, Crohn's disease, posttraumatic stress disorder, [or] (B) any medical condition, medical treatment or disease approved by the Department of Consumer Protection pursuant to regulations adopted under section 21a-408m, or (C) any medical condition or disease for which a controlled substance has been prescribed by a physician in excess of a thirty-day supply;
3737
3838 [(3)] (4) "Licensed dispensary" or "dispensary" means a person licensed as a dispensary pursuant to section 21a-408h;
3939
4040 [(4)] (5) "Licensed producer" or "producer" means a person licensed as a producer pursuant to section 21a-408i;
4141
4242 [(5)] (6) "Marijuana" means marijuana, as defined in section 21a-240;
4343
4444 [(6)] (7) "Palliative use" means the acquisition, distribution, transfer, possession, use or transportation of marijuana or paraphernalia relating to marijuana, including the transfer of marijuana and paraphernalia relating to marijuana from the patient's primary caregiver to the qualifying patient, to alleviate a qualifying patient's symptoms of a debilitating medical condition or the effects of such symptoms, but does not include any such use of marijuana by any person other than the qualifying patient;
4545
4646 [(7)] (8) "Paraphernalia" means drug paraphernalia, as defined in section 21a-240;
4747
4848 [(8)] (9) "Physician" means a person who is licensed under chapter 370, but does not include a physician assistant, as defined in section 20-12a;
4949
5050 [(9)] (10) "Primary caregiver" means a person, other than the qualifying patient and the qualifying patient's physician, who is eighteen years of age or older and has agreed to undertake responsibility for managing the well-being of the qualifying patient with respect to the palliative use of marijuana, provided (A) in the case of a qualifying patient lacking legal capacity, such person shall be a parent, guardian or person having legal custody of such qualifying patient, and (B) the need for such person shall be evaluated by the qualifying patient's physician and such need shall be documented in the written certification;
5151
5252 [(10)] (11) "Qualifying patient" means a person who is eighteen years of age or older, is a resident of Connecticut and has been diagnosed by a physician as having a debilitating medical condition. "Qualifying patient" does not include an inmate confined in a correctional institution or facility under the supervision of the Department of Correction;
5353
5454 [(11)] (12) "Usable marijuana" means the dried leaves and flowers of the marijuana plant, and any mixtures or preparations of such leaves and flowers, that are appropriate for the palliative use of marijuana, but does not include the seeds, stalks and roots of the marijuana plant; and
5555
5656 [(12)] (13) "Written certification" means a written certification issued by a physician pursuant to section 21a-408c.
5757
5858 Sec. 2. (NEW) (Effective October 1, 2016) (a) For the purposes of this section:
5959
6060 (1) "Licensed producer" or "producer" means a producer licensed to cultivate, sell, deliver, transport or distribute marijuana for palliative use pursuant to section 21a-408i of the general statutes;
6161
6262 (2) "Licensed dispensary" means a dispensary licensed to acquire, possess, distribute and dispense marijuana for palliative use pursuant to section 21a-408h of the general statutes; and
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6464 (3) "Marijuana" means pharmaceutical grade marijuana for palliative use that is distributed in accordance with chapter 420f of the general statutes.
6565
6666 (b) (1) Not later than December 15, 2016, and annually thereafter, the Commissioner of Consumer Protection shall determine the number of qualifying patients who hold valid registration certificates issued from the Department of Consumer Protection pursuant to subsection (a) of section 21a-408a of the general statutes.
6767
6868 (2) On and after January 1, 2017, there shall be paid to the Commissioner of Revenue Services by each licensed producer a surcharge on its gross receipts in accordance with the following schedule for any marijuana distributed by the producer to a licensed dispensary:
6969
7070 (A) For the calendar year commencing January 1, 2017, a surcharge of three per cent of gross receipts, except that if the commissioner determines that at least twenty-one thousand qualifying patients hold valid registration certificates as of December 15, 2016, the surcharge shall be calculated pursuant to the alternate schedule set forth in subparagraph (I) of this subdivision.
7171
7272 (B) For the calendar year commencing January 1, 2018, a surcharge of three and one-half per cent of gross receipts, except that if the commissioner determines that at least twenty-six thousand qualifying patients hold valid registration certificates as of December 15, 2017, the surcharge shall be calculated pursuant to the alternate schedule set forth in subparagraph (I) of this subdivision.
7373
7474 (C) For the calendar year commencing January 1, 2019, a surcharge of four per cent of gross receipts, except that if the commissioner determines that at least thirty-one thousand qualifying patients hold valid registration certificates as of December 15, 2018, the surcharge shall be calculated pursuant to the alternate schedule set forth in subparagraph (I) of this subdivision.
7575
7676 (D) For the calendar year commencing January 1, 2020, a surcharge of four and one-half per cent of gross receipts, except that if the commissioner determines that at least thirty-one thousand qualifying patients hold valid registration certificates as of December 15, 2019, the surcharge shall be calculated pursuant to the alternate schedule set forth in subparagraph (I) of this subdivision.
7777
7878 (E) For the calendar year commencing January 1, 2021, a surcharge of five per cent of gross receipts, except that if the commissioner determines that at least thirty-six thousand qualifying patients hold valid registration certificates as of December 15, 2020, the surcharge shall be calculated pursuant to subparagraph (I) of this subdivision.
7979
8080 (F) For the calendar year commencing January 1, 2022, a surcharge of five and one-half per cent of gross receipts, except that if the commissioner determines that at least thirty-six thousand qualifying patients hold valid registration certificates as of December 15, 2021, the surcharge shall be calculated pursuant to the alternate schedule set forth in subparagraph (I) of this subdivision.
8181
8282 (G) For the calendar year commencing January 1, 2023, a surcharge of six per cent of gross receipts, except that if the commissioner determines that at least forty-one thousand qualifying patients hold valid registration certificates as of December 15, 2022, the surcharge shall be calculated pursuant to the alternate schedule set forth in subparagraph (I) of this subdivision.
8383
8484 (H) For the calendar year commencing January 1, 2024, and each calendar year thereafter, a surcharge of six and one-half per cent of gross receipts, except that if the commissioner determines that at least forty-one thousand qualifying patients hold valid registration certificates as of the preceding December fifteenth, the surcharge shall be calculated pursuant to the alternate schedule set forth in subparagraph (I) of this subdivision.
8585
8686 (I) For the purposes of this subdivision, the alternate schedule shall be calculated as follows:
8787
8888
8989
9090 T1 Number of Qualifying Patients Surcharge Amount
9191 T2 16,000 to 20,999 3%
9292 T3 21,000 to 25,999 3.5%
9393 T4 26,000 to 30,999 4%
9494 T5 31,000 to 35,999 5%
9595 T6 36,000 to 40,999 6%
9696 T7 41,000 to 45,999 7%
9797 T8 46,000 to 50,999 8%
9898 T9 51,000 to 55,999 9%
9999 T10 56,000 10%
100100
101101 T1
102102
103103 Number of Qualifying Patients
104104
105105 Surcharge Amount
106106
107107 T2
108108
109109 16,000 to 20,999
110110
111111 3%
112112
113113 T3
114114
115115 21,000 to 25,999
116116
117117 3.5%
118118
119119 T4
120120
121121 26,000 to 30,999
122122
123123 4%
124124
125125 T5
126126
127127 31,000 to 35,999
128128
129129 5%
130130
131131 T6
132132
133133 36,000 to 40,999
134134
135135 6%
136136
137137 T7
138138
139139 41,000 to 45,999
140140
141141 7%
142142
143143 T8
144144
145145 46,000 to 50,999
146146
147147 8%
148148
149149 T9
150150
151151 51,000 to 55,999
152152
153153 9%
154154
155155 T10
156156
157157 56,000
158158
159159 10%
160160
161161 (c) Each licensed producer shall register with the Commissioner of Revenue Services on forms prescribed by the commissioner not later than October 1, 2016, and each registered producer shall renew its registration with the commissioner annually, in such manner as the commissioner may prescribe. No licensed producer may engage in or transact business as a producer unless such producer is registered with the commissioner in accordance with the provisions of this section. Any producer that fails to register or renew such registration in accordance with the provisions of this subsection shall pay a penalty of one thousand dollars for each such failure, which penalty shall not be subject to waiver.
162162
163163 (d) Each producer shall submit a return quarterly to the Commissioner of Revenue Services, applicable with respect to the calendar quarter beginning January 1, 2017, and each calendar quarter thereafter, on or before the last day of the month immediately following the end of each such calendar quarter, on a form prescribed by the commissioner, together with payment of the quarterly surcharge determined and payable in accordance with the provisions of this section. Whenever such surcharge is not paid when due, a penalty of ten per cent of the amount due or fifty dollars, whichever is greater, shall be imposed, and such surcharge shall bear interest at the rate of one per cent per month or fraction thereof until the same is paid. The Commissioner of Revenue Services shall cause copies of a form prescribed for submitting returns as required under this section to be distributed to persons subject to the surcharge. Failure to receive such form shall not be construed to relieve any person subject to the surcharge under this section from the obligations of submitting a return, together with payment of such surcharge within the time required. The provisions of sections 12-548 to 12-554, inclusive, of the general statutes and sections 12-555a and 12-555b of the general statutes shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of said sections 12-548 to 12-554, inclusive, and sections 12-555a and 12-555b had been incorporated in full into this section and had expressly referred to the surcharge imposed under this section, except to the extent that any such provision is inconsistent with a provision of this section and except that the term "tax" shall be read as "licensed producer surcharge". Any moneys received by the commissioner pursuant to this section shall be deposited into the General Fund.
164164
165165 (e) The Commissioner of Revenue Services shall notify the Commissioner of Consumer Protection whenever a licensed producer has continuously failed to comply with the requirements of this section for a period of at least six months. The Commissioner of Consumer Protection may suspend, revoke or refuse to renew the license of a producer who has continuously failed to comply with the requirements of this section for a period of six months or longer.
166166
167167
168168
169169
170170 This act shall take effect as follows and shall amend the following sections:
171171 Section 1 July 1, 2015 21a-408
172172 Sec. 2 October 1, 2016 New section
173173
174174 This act shall take effect as follows and shall amend the following sections:
175175
176176 Section 1
177177
178178 July 1, 2015
179179
180180 21a-408
181181
182182 Sec. 2
183183
184184 October 1, 2016
185185
186186 New section
187187
188188 Statement of Purpose:
189189
190190 To (1) establish a surcharge on licensed producers' gross receipts of palliative marijuana sold to licensed dispensaries, and (2) allow the palliative use of marijuana for medical conditions and diseases for which a controlled substance is prescribed for a period greater than thirty days.
191191
192192 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]