HB2704--CANNABISFREEDOMACT
SPONSOR: Hicks
Thisbillestablishesthe"CannabisFreedomAct".
Undertheprovisionsofthisbill,taxpayersareauthorizedto
conductbusinessunderthemedicalcannabisprovisionsofthe
ConstitutionofMissouriorundertheprovisionsofthisbillmay
deducttheamountthatwouldhavebeendeductedfromthe
computationofthetaxpayer'sfederaltaxableincomeifsucha
deductionwerenotdisallowedunder26U.S.C.Section280E,asin
effectonJanuary1,2022,becauseofthestatusofmarijuanaasa
controlledsubstanceunderfederallaw(Section143.121,RSMo).
ForalltaxyearsbeginningonorafterJanuary1,2023,in
additiontootherdeductionsallowedbylaw,aqualifiedtaxpayer,
asdefinedunderthebill,maydeductfromtheirMissouriadjusted
grossincomeanamountequaltotheamountspentinagivenyearon
alicenseapplicationfeerequiredundermedicalcannabis
provisionsoftheConstitutionofMissouri. TheDepartmentof
Revenueshallpromulgateallnecessaryrulesandregulationsfor
theadministration ofthissection. Thisdeductionshallsunset
sixyearsaftertheeffectivedateofthisbill(Section143.2200).
Nostateagencyshalldisclosetothefederalgovernment,any
federalgovernmentemployee,oranyunauthorizedthirdparty,the
statewidelistoranyindividualinformationofpersonswhohave
appliedfororobtainedaqualifyingpatientidentification card,a
qualifyingpatientcultivationidentification card,oraprimary
caregiveridentification card,asthosecardsaredescribedin
ArticleXIV,Section1oftheConstitutionofMissourirelatingto
therighttoaccessmedicalmarijuana(Section191.255).
Thisbillremovesmarijuanaandtetrahydrocannabinols (THC),as
defined,fromthelistofcontrolledsubstancesandremoves
marijuanafromtheoffensesofpossession,delivery,distribution,
manufacture,andtraffickingofacontrolledsubstance(Sections
195.006,195.017,579.015,579.020,579.030,579.055,579.065,and
579.068).
Currently,allowners,officers,managers,contractors,employees,
andothersupportstaffoflicensedorcertifiedmedicalmarijuana
facilitiesmustsubmitfingerprintstotheStateHighwayPatrolfor
stateandfederalcriminalbackgroundchecks.Additionally,the
DepartmentofHealthandSeniorServicesmayrequirefingerprint
submissionsofowners,officers,managers,contractors,employees,
andothersupportstaffforlicensureauthorizingthatpersonto
ownorworkatamedicalmarijuanafacility. Thisbillprovides thatonlyemployees,contractors,owners,andvolunteersofmedical
marijuanafacilitiesorfacilitiessubjecttotheCannabis
EnforcementAuthorityshallbesubjecttosuchfingerprinting.
Thisbillprovidesadefinitionofcontractorforpurposesofthe
provisionsofthissection(Section195.815).
Thissectionestablishesthe"CannabinoidProductLabelingAct"and
providesthattheGeneralAssemblyoccupiesandpreemptsthefield
ofcannabinoidoilproductsregulationtothefullexclusionofany
order,ordinance,orregulationofanypoliticalsubdivisionofthe
state,withanyexistingorfutureorders,ordinances,or
regulationsbecomingvoid.Thebillshallnotapplytoanyhemp
extractforwhicharegistrationcardhasbeenissuedunder
Sections192.945to192.947orSection195.207.
Thissectionrequirescannabinoidoilproductstobelabeledand
includenecessaryinformation,asdescribedinthesection. This
sectionspecifiesthatadealermustnotprepareorsella
cannabinoidoilproductthatisadulteratedwithadangerous
substanceandasuchproductmustonlybesoldtoapersonoverthe
ageof21(Section196.1173).
Thesesectionsestablishthe"CannabisFreedomAct".TheCannabis
EnforcementAuthorityshallpromulgateallnecessaryrulesand
regulationsfortheadministration ofthesesections. The
provisionsofthesesectionsshallnotrestricttherightsof
employerstomaintainadrugandalcohol-freeworkplaceorrequire
anyemployertoalloworaccommodatetheuseofmarijuana. These
provisionsshallnotallowtheoperationofmotorvehicleswhile
impairedbymarijuana,orallowindividualsundertheageof21to
purchasemarijuana.Theseprovisionsdonotrestricttherightsof
employers,schools,carefacilities,orcorrectionalfacilitiesto
prohibitorregulateconductotherwiseallowedunderthese
provisions.
Theseprovisionslegalizethepossessionandconsumptionof
marijuanaforpersonaluse,allowforanyone21yearsofageor
oldertocultivateandpossessnomorethan12mature,flowering
marijuanaplantsfornoncommercialuse,andallowsforthesaleof
marijuanaproductstoconsumers21yearsofageorolder.Theuse
orpossessionofmarijuanashallnotimpedeaperson'slegalright
topossessafirearm. Itshallbelawfulforaperson21yearsof
ageoroldertotransferorgiftmarijuanatoanotheradult.
Marijuanafarmers,manufacturers, processors,anddistributors
shallnotbesubjecttospecialzoningrequirementsorlicensing
fees.
Assetorcivilforfeitureshallnolongerbeusedinthestatein associationwithlegalmarijuanacultivation,use,sale,or
possession.
Ataxshallbeleviedonthesaleofmarijuanaandmarijuana
productsataratenottoexceed12%.Alltaxrevenuescollected
shallbedepositedintothe"CannabisFreedomFund",asestablished
underthebill,andusedtopayforcostsassociatedwiththe
implementation, administration, andenforcementoftheprovisions
ofthesesections. ExcessmoneysremainingintheFundshallbe
dividedequallybetweenteachers'salaries,firstresponders'
pensions,andtheMissouriVeteransCommission. Theseprovisions
shallnotprohibitanystateorlocalsalestaxes.Anysaleof
marijuanaformedicaluseshallnotbesubjecttothetax
establishedherein.
Theseprovisionsestablishthe"CannabisEnforcementAuthority",
undertheDepartmentofAgriculture. TheAuthorityshallhave
oversightandauditingresponsibilities andshallimplementan
inventorytrackingsystem.TheAuthorityshallrequirebusiness
recordsbekeptforalltransactions. Inventoryshallbetracked
andupdatedaftereachindividualsaleandreportedtothe
Authority. TheAuthorityshallrequireaseed-to-saletracking
systemthattracksmarijuanafromeithertheseedorimmatureplant
stageuntilthemarijuanaormarijuanaproductissoldtoa
consumer,asdescribedinthebill.
Theseprovisionsestablishthemarijuanabusinesslicense,which
includesannuallicensesforthefollowingcategories:marijuana
commercialgrowers,marijuanaprocessors,marijuanaretailers,
marijuanasellers,andmarijuanatransporters. Grower,processor,
retailer,andtransporterprospectivelicenseesmustfirstapply
foratemporarymarijuanabusinesslicensepriortoissuanceofan
annuallicense. Suchtemporarylicenseshallbevalidfor180
days,subjecttoextension,andshallnotobligatetheAuthorityto
issueanannuallicense.
TheAuthorityshalldevelopawebsiteformarijuanabusiness
applications.Applicationsmustmeetgeneralrequirementsas
providedinthebillandallapplicantsshallundergoabackground
check.TheAuthorityshallreview,approveorreject,andmailsuch
approvalorrejectionwithin90daysofreceiptoftheapplication.
Inadditiontothesegeneralrequirements,theseprovisionsalso
provideforadditionalrequirementsforapplicantsfortemporary
licensesorrenewalofannuallicenses. Alicensedcommercial
growershallsellonlyatthewholesaleleveltoalicensed
retailer,grower,orprocessor. Licensedcommercialgrowersand
processorsshallcompleteandsubmitmonthlyyieldandsales
reportstotheAuthority,asdescribedinthebill.TheAuthority shallhaveoversightandauditingresponsibility toensureall
marijuanagrownbyalicensedcommercialgrowerisaccountedfor
andallmarijuanaprocessorsproducingproductswithmarijuanaas
anadditiveareincompliancewiththerequirementsofthebill.
Inadditiontotheapplicationrequirementsestablishedunderthese
provisions,licensedcommercialgrowersandprocessorsshall
demonstratethattheyhaveabankaccountandshallprovidegrowth
estimates,processingestimates,andpredictedelectricalandwater
usagetogroworprocessmarijuana.
TheAuthoritymayissuetemporaryorannualprocessorlicenses
basedonthelevelofriskposedbythetypeofprocessingbeing
conductedaseitheranonhazardousmarijuanaprocessorlicenseora
hazardousmarijuanaprocessorlicense. TheAuthorityshall
establishstandardsforlicensedprocessorsforthepreparationof
ediblemarijuanaproducts.
Amarijuanatransporterlicenseshallallowtheholdertotransport
marijuanafromaMissouri-licensedmarijuanaretailer,licensed
commercialgrowerfacility,orlicensedprocessorfacilitytoa
Missouri-licensedmarijuanaretailer,licensedcommercialgrower
facility,orlicensedprocessingfacility. Allmarijuanaor
marijuanaproductsshallbetransportedinalockedcontainer
labeledas"MarijuanaorDerivative". Nobusinessmayposses,
sell,ortransfermarijuanawithoutavalidtransporterlicense. A
transporterlicenseemaycontractwithmultiplemarijuana
businesses. Atransporterlicenseeshallusetheseed-to-sale
trackingsystempromulgatedbytheAuthority. TheAuthorityshall
issuetransporteragentlicensestoindividualagents,employees,
andownersofatransporterlicenseinorderforthatindividualto
qualifytotransportmarijuana. Suchagentlicenseshallbe
subjecttoanannualfeeof$25.Thetransportation andinventory
trackingofmarijuanaandmarijuanaproductsshallcomplywith
requirementsasprovidedforinthebill.
Inadditiontofailuretomeettherequirementsestablishedunder
thebill,groundsfordenialforatemporaryorannuallicense
shallinclude:unlawfulsalesorpurchases,fraudulentacts,
falsifiedrecordsormisrepresentation totheAuthority,grossly
inaccurateorfraudulentreporting,threateningorharmingany
marijuanapatient,caregiver,consumer,medicalpractitioner,or
employeeoftheAuthority,useofprohibitedsubstancesfor
processinginresidentialareas,andendangeringpublichealthand
safety.
Anentityholdingamedicalmarijuanabusinesslicenseissuedby
theDepartmentofHealthandSeniorServicesmayonlyapplyfora
marijuanabusinesslicenseundertheprovisionsofthisbillafter August28,2024.Thereafter,anentitymayconcurrentlysubmitan
applicationtoobtainalicenseforamedicalmarijuanadispensary
facilityandlicenseforamarijuanabusiness.
TheAuthorityshallbyrulecreateastatewidehospitalitybusiness
licenseallowingabusiness,asdescribedinthebill,tosell
marijuanaormarijuanaproductsataprivateevent.TheAuthority
shallmaintainalistofbusinesseslicensedunderthese
provisions. Suchbusinessesshallsubmitanapplicationtothe
Authoritywithafeeinaformandmannerasdeterminedbythe
Authority. Thislicenseshallbevalidfortwoyears.Any
businessthatdoesnothaveahospitalitybusinesslicensethat
knowinglyallowsgueststoconsumemarijuanaonitspremises,ora
licensedhospitalitybusinessthatdoesnotcomplywiththe
requirementsundertheseprovisions,shallbesubjecttofinesand
penaltiesasprovidedforinthebill.
Ifmarijuanaisdecriminalized onafederallevel,anylicensed
marijuanabusinessinthestatemayengageininterstatecommerce,
andthestatemayenterintoanyinterstatecompactoragreement
relatingtomarijuana(Sections196.3000to196.0348).
Nobank,trustcompany,association,orcreditunionshallbe
prohibited,penalized,haveanyadverseactiontakenagainstit,or
otherwisediscouragedfromprovidingfinancialservicesto
facilitieslicensedundertheprovisionsofthisbillorunder
ArticleXIV,Section1oftheConstitutionofMissouriortoany
serviceprovidertosuchafacilities.
Furthermore,banks,trustcompanies,associations,andcredit
unionsarepermittedtoreceivethesavingsof,makeloansto,
depositthefundsof,andinvestfundsofcustomerswhooperateas
afacilitylicensedundertheprovisionsofthisbillorunder
ArticleXIV,Section1oftheConstitutionofMissouri.Nosuch
institutionactingpursuanttothisbillshallbeliableunder
statelawforcontractingwithsuchfacilities(Sections362.105,
369.144,369.326,370.064,and370.070).
Afamilycourtparticipantshallnotberequiredtorefrainfrom
usingmarijuanaorconsumingmarijuanainaccordancewiththe
provisionsofthisbillorinaccordancewithArticleXIV,Section
1oftheConstitutionofMissouriasatermorconditionof
successfulcompletionofthefamilycourtprogram. Afamilycourt
participantwhoisaqualifiedpatientwithavalidmedical
marijuanacertificationorwhousesorconsumesmarijuanain
accordancewiththeprovisionsofthisbillshallnotbein
violationofthetermsorconditionsofthefamilycourtonthe
basisofhisorherparticipationinMissouri'smedicalmarijuana
program(Section487.205). Theodorofmarijuanaaloneshallnotprovidealawenforcement
officerwithprobablecausetoconductawarrantlesssearchofa
motorvehicle,home,orotherprivateproperty(Section544.186).
Anyconviction,remainingsentence,ongoingsupervision,orunpaid
court-orderedrestitutionofanypersonincarcerated,onprobation
orparole,orotherformofcommunitysupervisionresultingfroma
convictionofanonviolentmarijuana-relatedoffenseshallhave
suchconviction,remainingsentence,ongoingsupervision,orunpaid
court-orderedrestitutionvacatedifthepersonfilesapetitionin
thecourtinwhichthepersonwasconvictedoftheoffenseor
violation. Thelawfulpossessionoruseofmarijuanashallnot
resultinanypunitiveactionwithregardtoprobationorparole
status.Noconditionofprobationorparoleshallconsistof
restrictingthepossessionoruseofmarijuana,andnorevocation
orextensionofprobationorparoleshallbeimposedasa
consequenceofthelawfulpossessionoruseofmarijuana.
Anypersonwhowasconvictedofanonviolentmarijuana-related
offensemaypetitionthecourttohavesuchoffenseexpungedso
longastheoffenseorviolationwasprosecutedunderthe
jurisdictionofaMissouricourtandallnonviolentmarijuana-
relatedoffensesarelistedinthepetitionofexpungement
(Sections559.023,557.059,and610.135).
Thisbillcontainspenaltyprovisions.