An Act To Change the Oversight Agency for Recreational Marijuana from the Department of Agriculture, Conservation and Forestry to the Depaiiment of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations and To Allocate Funds for Implementation
Maine Legislature, Session 128, LD 0243
Committee Amendment CA_B_H222 (House)
Amends: 5 MRSA §281-A, 7 MRSA §1-C, 7 MRSA §2442, 7 MRSA §2444, 7 MRSA §2444-A, 7 MRSA §2445, 7 MRSA §2446, 7 MRSA §2447, 7 MRSA §2448, 7 MRSA §2449, 7 MRSA §2450, 7 MRSA §2451, 7 MRSA §2455

COMMITTEE AMENDMENT "B " to H.P. 176, L.D. 243, Bill, "An Act To 
Change the Oversight Agency for Recreational Marijuana from the Department of 
Agriculture, Conservation and Forestry to the Depaiiment of Administrative and 
Financial Services, Bureau of Alcoholic Beverages and Lottery Operations and To 
Allocate Funds for Implementation" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Provide Oversight of the Marijuana Legalization Act by the Department 
of Agriculture, Conservation and Forestry and the Department of Administrative 
and Financial Services and To Allocate Funds for Implementation' 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'Sec. 1. 5 MRSA §281-A is enacted to read: 
§281-A. State licensing authority for retail purposes 
The Depaiiment of Administrative and Financial Services shall serve as the state 
licensing authority for retail purposes under Title 7, section 2444-A, subsection 2 . 
Sec. 2. 7 MRSA §1-C is enacted to read: 
§1-C. State licensing authority for agricultural purposes 
The department shall serve as the state licensing authority for agricultural purposes 
under section 2444-A, subsection 1. 
Sec. 3. 7 MRSA §2442, sub-§§7 and 9, as enacted by IB 2015, c. 5, §1, are 
repealed. 
Sec. 4. 7 MRSA §2442, sub-§9-A is enacted to read: 
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COMMITIEE AMENDMENT" a" to H.P. 176, L.D. 243 
9-A. Disqualifying drug offense. "Disqualifying drug offense" means a conviction 
for a violation of a state or federal controlled substance law that is a crime punishable by 
imprisonment for 5 years or more. "Disqualifying drug offense" does not include an 
offense for which the sentence, including any term of probation, incarceration or 
supervised release, was completed at least 10 years prior to application for licensure or an 
offense that consisted of conduct that is permitted under this chapter. 
Sec. 5. 7 MRSA §2442, sub-§44, as enacted by IB 2015, c. 5, §1, is repealed and 
the following enacted in its place: 
44. State licensing authority. "State licensing authority" means: 
A. The Department of Agriculture, Conservation and Forest1y for all matters related 
to the regulation and licensure of marijuana cultivation, preparation, manufacturing, 
testing, packaging and labeling; and 
B. The Department of Administrative and Financial Services for all matters related 
to the regulation, licensing and distribution for retail purposes of retail marijuana and 
retail marijuana products. 
Sec. 6. 7 MRSA §2444, as amended by PL 2017, c. 1, §6, is repealed. 
Sec. 7. 7 MRSA §2444-A is enacted to read: 
§2444-A. State licensing authorities 
1. Department of Agriculture, Conservation and Forestry licensing authority 
for regulation and licensure of marijuana cultivation, preparation, manufacturing, 
testing, packaging and labeling. The Depa1tment of Agriculture, Conservation and 
Forest1y, referred to in this subsection as "the depattment," is the state licensing authority 
for agricultural purposes and has jurisdiction over marijuana cultivation, including, but 
not limited to, all aspects of marijuana seeds, clones, seedlings and plants and use of 
pesticides and harvesting and storage; the preparation of marijuana; retail marijuana 
manufacturing and retail marijuana products manufacturing; the testing of marijuana, 
retail marijuana and retail marijuana products; and the packaging and labeling of 
marijuana, retail marijuana and retail marijuana products. 
The Commissioner of 
Agriculture, Conservation and Forestry may employ officers and employees as are 
determined to be necessaty. 
A. The department may: 
(1) 
Grant or refuse licenses for the cultivation, preparation, manufacturing, 
testing, packaging and labeling of marijuana, retail marijuana and retail 
marijuana products as provided by this chapter; 
(2) Suspend, fine, restrict or revoke licenses issued under subparagraph (1) upon 
a violation of this chapter or any rule adopted pursuant to this chapter; and 
(3) Impose any penalty authorized by this chapter or any rule adopted pursuant 
to this chapter. 
B. The depattment shall adopt rules for the proper regulation and control of the 
cultivation, preparation, manufacturing, testing, packaging and labeling of marijuana, 
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COMMITTEE AMENDMENT" s " 
to H.P. 176, L.D. 243 
retail marijuana and retail marijuana products and for the enforcement of this chapter 
as it relates to the jurisdiction of the department as state licensing authority for 
agricultural purposes and shall amend rules as necessary. 
For the purpose of 
adopting rules pursuant to this paragraph, the Commissioner of Agriculture, 
Conservation and Forestiy may delegate rule-making authority granted under this 
paragraph to the Commissioner of Administrative and Financial Services, the 
Commissioner of Labor or the Commissioner of Public Safety if the Commissioner of 
Agriculture, Conservation and Forest1y detennines that the expertise and resources of 
that department would be beneficial in the development of the rules and the 
enforcement of those rules. These rules are major substantive rules pursuant to Title 
5, chapter 375, subchapter 2-A. 
Rules must address but are not limited to the 
following: 
(1) The hearing of contested state license denials at a public hearing, employing 
full due process, including subpoena power, the taking of oaths, the calling of 
witnesses and maintaining the confidentiality of customer records. Provision 
must be made for the conduct of appeal hearings following license actions 
including but not limited to the denial of a license renewal or of an initial license 
and license revocation and suspension and for hearings contesting the imposition 
of a fine; 
(2) 
The development of such forms, licenses, identification cards and 
applications as necessaty for the administration of this chapter or of any of the 
rules adopted under this chapter; 
(3) 
The preparation and transmission annually, in the form and manner 
prescribed by this chapter, of a rep01t in collaboration with the Depattment of 
Administrative and Financial Services to the Legislature accounting for the 
efficient discharge of all responsibilities assigned by law or rules to the 
department as state licensing authority for agricultural purposes and to the 
Department of Administrative and Financial Services as state licensing authority 
for retail purposes; 
( 4) Procedures consistent with this chapter for the issuance, renewal, suspension 
and revocation of licenses to operate retail marijuana cultivation facilities, retail 
marijuana products manufacturing facilities and retail marijuana testing facilities; 
(5) Limits on the concentration of THC and other cannabinoids per serving in 
any retail marijuana products; 
(6) Qualifications for licensure, including, but not limited to, the requirement for 
a fingerprint-based criminal history record check for all owners, officers, 
managers, employees and other supp01t staff of retail marijuana cultivation 
facilities, retail marijuana products manufacturing facilities and retail marijuana 
testing facilities licensed pursuant to this chapter; 
(7) Security requirements for any licensed premises under the jurisdiction of the 
depa1tment as state licensing authority for agricultural purposes under this 
chapter including, at a minimum, lighting, physical security, alarm requirements 
and other minimum procedures for internal control as determined necessmy by 
COMMITTEE AMENDMENT 
COMMI1TEE AMENDMENT "D "to H.P. 176, L.D. 243 
the department as state licensing authority for agricultural purposes to properly 
administer and enforce the provisions of this chapter, including reporting 
requirements for changes, alterations or modifications to the licensed premises. 
Security requirements may not be umeasonably impracticable; and 
(8) Securing and recording permission for a local fire depmiment or the State 
Fire Marshal to conduct an annual fire inspection of a retail marijuana cultivation 
facility. 
C. For the purposes of the effective administration and enforcement of this chapter, 
the department and the Depmiment of Administrative and Financial Services shall 
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work cooperatively to ensure that rules are adopted and that the chapter is 
implemented and enforced effectively. 
2. Department of Administrative and Financial Services licensing authority for 
regulation of the distribution of retail marijuana and retail marijuana products and 
licensure of retail marijuana stores and retail marijuana social clubs. 
The 
Department of Administrative and Financial Services, referred to in this subsection as 
"the department," is the state licensing authority for retail purposes and has jurisdiction 
over retail marijuana distribution, retail marijuana stores and retail marijuana social clubs. 
The Commissioner of Administrative and Financial Services may employ such officers 
and employees as the commissioner determines to be necessmy. The depmiment may: 
A. Grant or refuse licenses for retail marijuana stores and retail marijuana social 
clubs as provided by this chapter; 
B. Regulate the distribution ofretail marijuana and retail marijuana products; 
C. Suspend, fine, restrict or revoke licenses under paragraph E, subparagraph (1) 
upon a violation of this chapter or any rule adopted pursuant to this chapter; 
D. Impose any penalty authorized by this chapter or any rule adopted pursuant to this 
chapter; 
E. The depatiment shall adopt rules for the proper regulation and control of the 
distribution, tracking and sale of retail marijuana and retail marijuana products, for 
the licensing and operation of retail marijuana stores and retail marijuana social clubs 
and for the enforcement of this chapter as it relates to the jurisdiction of the 
depatiment for retail purposes and shall amend rules as necessary. For the purpose of 
adopting rules pursuant to this paragraph, the Commissioner of Administrative and 
Financial Services may delegate rule-making authority granted under this paragraph 
to the Commissioner of Agriculture, Conservation and Forest1y, the Commissioner of 
Labor or the Commissioner of Public Safety if the Commissioner of Administrative 
and Financial Services determines that the expe1tise and resources of that depattment 
would be beneficial in the development of the rules and the enforcement of those 
rules. These rules are major substantive rules pursuant to Title 5, chapter 375, 
subchapter 2-A. Rules must address but are not limited to the following: 
( 1) The hearing of an appeal of the denial to issue a license or renew a license 
issued pursuant to this subsection at a public hearing, employing full due process, 
including subpoena power, the taking of oaths, the calling of witnesses and 
maintaining the confidentiality of customer records. Provision must be made for 
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COMMITTEE AMENDMENT«{!," to H.P. 176, L.D. 243 
the conduct of appeal hearings following license actions including but not limited 
to the denial of a license renewal or of an initial license and license revocation 
and suspension and hearings for contesting the imposition of a fine; 
(2) 
The development of such forms, licenses, identification cards and 
applications as necessary for the administration of this chapter or of any of the 
rules adopted under this chapter; 
(3) 
The preparation and transmission annually, in the form and manner 
prescribed by this chapter, of a report in collaboration with the Department of 
Agriculture, Conservation and Forestty to the Legislature accounting for the 
efficient discharge of all responsibilities assigned by law or rules to the 
department and the Department of Agriculture, Conservation and Forestry; 
( 4) Procedures consistent with this chapter for the issuance, renewal, suspension 
and revocation of licenses to operate retail marijuana stores and retail marijuana 
social clubs; 
(5) Qualifications for licensure, including, but not limited to, the requirement for 
a fingerprint-based criminal history record check for all owners, officers, 
managers, employees and other support staff of retail marijuana stores and retail 
marijuana social clubs licensed pursuant to this chapter; and 
( 6) Security requirements for any licensed premises under the jurisdiction of the 
department for retail purposes under this chapter including, at a minimum, 
lighting, physical security, alarm requirements and other minimum procedures 
for internal control as determined necessary by the department to properly 
administer and enforce the provisions of this chapter, including reporting 
requirements for changes, alterations or modifications to the licensed premises. 
Security requirements may not be unreasonably impracticable; and 
F. For the purposes of the effective administration and enforcement of this chapter, 
the depa1iment and the Department of Agriculture, Conservation and Forestty shall 
work cooperatively to ensure that rules are adopted and that the chapter is 
implemented and enforced effectively. 
Sec. 8. 7 MRSA §2445, first 1, as amended by PL 2017, c. 1, §7, is further 
amended to read: 
Beginning Februa1y 1, 2018, the state licensing authority Depa1iment of Agriculture, 
Conservation and Forest1y shall establish, 1.vithin a specific time frame, a retail marijuana 
and retail marijuana products independent testing and certification program. 
This 
program must require licensees to test retail marijuana and retail marijuana products to 
ensure at a minimum that products sold for human consumption do not contain 
contaminants that are injurious to health and to ensure correct labeling. 
Sec. 9. 7 MRSA §2445, last 1, as enacted by IB 2015, c. 5, §1, is amended to 
read: 
The establishment of an independent testing and certification program does not affect 
the adoption of rules in section 2444 2444-A, subsection 1 or affect the implementation 
of cultivation, production and sale of retail marijuana and retail marijuana products. 
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COMMITTEE AMENDMENT" I) "to H.P. 176, L.D. 243 
Sec. 10. 7 MRSA §2446, sub-§§2 to 4, as enacted by IB 2015, c. 5, §1, are 
amended to read: 
2. Health and safety rules. The Each state licensing authority shall adopt health 
and safety rules, which are major substantive rules pursuant to Title 5, chapter 375, 
subchapter 2-A, and standards for the manufacture of retail marijuana products and.,_ the 
cultivation of retail marijuana and the sale of retail marijuana and retail marijuana 
products, which must include: 
A. 
Limitations By the Depaitment of Administrative and Financial Services, 
limitations on the adve1tising and display of retail marijuana and retail marijuana 
products; 
B. Regulation By both the Depaitment of Administrative and Financial Services and 
the Department of Agriculture, Conservation and Forestry, regulation of the storage 
of, warehouses for and transp01tation of retail marijuana and retail marijuana 
products; and 
C. Sanitary By both the Depa1tment of Administrative and Financial Services and 
the Depaitment of Agriculture, Conservation and Forest1y, sanitaiy requirements for 
retail marijuana establishments, including but not limited to sanitaty requirements for 
the preparation of retail marijuana products. 
3. Training for local jurisdictions and law enforcement officers. The Each state 
licensing authority, for the area within its jurisdiction as specified in section 2444-A, 
subsection 1 or 2, shall adopt rules, which are major substantive rules pursuant to Title 5, 
chapter 375, subchapter 2-A, and processes for training local jurisdictions and law 
enforcement officers in the law, including the requirements for inspections, 
investigations, searches, seizures, forfeitures and such additional activities as may 
become necessary from time to time. 
4. Identification cards. The following provisions govern identification cards. 
A. +he Each state licensing authority, for the area within its jurisdiction as specified 
in section 2444-A, subsection 1 or 2, shall adopt rules detailing the format of, and 
inclusion of information on, individual identification cards for owners, officers, 
managers, contractors, employees and other support staff of entities licensed pursuant 
to this chapter, including a fingerprint-based criminal history record check as may be 
required by the state licensing authority prior to issuing an identification card. 
B. The state lieensing authority Department of Administrative and Financial Services 
shall specify those forms of photo identification that a retail marijuana store may 
accept when verifying a sale, including but not limited to government-issued 
identification cards. 
C. The Each state licensing authority, for the area within its jurisdiction as specified 
in section 2444-A, subsection 1 or 2, shall develop procedures for license renewals, 
reinstatements, initial licenses and the payment of licensing fees, as well as other 
matters that are necessaiy for the fair, impaitial and comprehensive administration of 
this chapter. 
D. Rules adopted pursuant to this subsection are routine technical rules, pursuant to 
Title 5, chapter 375, subchapter 2-A. 
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COMMITTEE AMENDMENT"~,, to H.P. 176, L.D. 243 
Sec. 11. 7 MRSA §2447, as amended by PL 2017, c. 1, §9, is further amended to 
read: 
§2447. License application and issuance 
Beginning February 1, 2018, an application for a license under the provisions of this 
chapter must be made to the state lieensing authority Department of Agriculture, 
Conservation and Forestry for licenses related to agricultural matters, as specified in 
section 2444-A, subsection 1, and to the Department of Administrative and Financial 
Services for licenses related to the retail sale of marijuana and marijuana products, as 
specified in section 2444-A, subsection 2, on forms prepared and furnished by the 
applicable state licensing authority and must set forth such information as the applicable 
state licensing authority may require to enable the that state licensing authority to 
determine whether a license should be granted. The information must include the name 
and address of the applicant and the names and addresses of the applicant's officers, 
directors or managers. Each application must be verified by the oath or affirmation of 
such person or persons as the state licensing authority may prescribe. The state licensing 
· authority may issue a license to an applicant pursuant to this section upon completion of 
the applicable criminal histo1y record check associated with the application. The license 
is conditioned upon municipal approval. An applicant is prohibited from operating a 
retail marijuana establishment or retail marijuana social club without state lieensing 
authority Department of Administrative and Financial Services and municipal approval. 
If the applicant does not receive municipal approval within one year from the date of state 
lieensing authority Department of Administrative and Financial Services approval, the 
license expires and may not be renewed. If an application is not approved by the 
municipality, the state lieensing a.rthority Department of Administrative and Financial 
Services shall revoke the license. 
1. Qualifications. The following provisions govern the qualifications for licensure 
by the Department of Administrative and Financial Services, refened to in this subsection 
as "the department," as a retail marijuana establishment or retail marijuana social club. A 
person is not qualified to conduct licensed activities until the required annual fee has been 
paid. 
A. An applicant who is a natural person must be at least 21 years of age. If an 
applicant is a corporation, all members of the board must comply with this paragraph. 
B. A person who has been convicted of a disqualifying drug offense may not be a 
licensee. 
For purposes of this paragraph, "disqualifying drug offense" means a 
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eonviction for a violation of a state or federal eontrolled su-bstanee law that is a crime 
punishable by imprisonment for 5 years or more. "Disqualifying drug offense" does 
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not include an offense for which the sentence, including any term of probation, 
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incareerntion or supervised release, was completed 10 or more years prior to 
application for lieensure or an offense that eonsisted of conduct that is permitted 
under this chap-tor. 
C. A person who has had a license for a retail marijuana establishment or retail 
marijuana social club revoked may not be a licensee. 
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COMMITTEE AMENDMENT"&" to H.P. 176, L.D. 243 
D. 
A sheriff, deputy sheriff, police officer, prosecuting officer or an officer or 
employee of the either state licensing authority or a municipality is ineligible to 
become may not be a licensee. 
E. 
The state licensing authority department shall investigate all applicants for 
compliance with this chapter prior to issuing a license. 
F. First priority for licensure must be given to registered caregivers who have been 
continuously registered with the Department of Health and Human Services pursuant 
to the Maine Medical Use of Marijuana Act or who have experience serving as a 
principal officer or board member of a nonprofit medical dispensary registered with 
the Department of Health and Human Services pursuant to the Maine Medical Use of 
Marijuana Act. If an applicant, either a business entity or an individual, owns, has a 
financial interest in or controls the management of more than one dispensary in this 
State, that applicant may receive preference fOl' only one license in each license class. 
As long as there are other preferred applicants for any or all license classes an 
applicant who ovms, has a financial interest in or controls the management of more 
than one dispensal)' in this State is not eligible for multiple licenses in any class. 
Preference must be given to an applicant viho has at least 3 medical marijuana 
caregiver registrations when determining vihich applicants receive licenses. 
G. The state licensing authority department shall accept applications from registered 
caregivers and principal officers or board members of registered dispensaries who 
have continuously registered with the Department of Health and Human Services 
pursuant to the Maine Medical Use of Marijuana Act. 
H. 
The state licensing authority department shall adopt rules, which are major 
substantive rules pursuant to Title 5, chapter 375, subchapter 2-A, for a streamlined 
application process for registered caregivers and principal officers or board members 
of dispensaries registered with the Department of Health and Human Services 
pursuant to the Maine Medical Use of Marijuana Act, which must include an initial 
site inspection confinning compliance with this chapter. 
I. If an applicant, either a business entity or an individual, owns, has a financial 
interest in or controls the management of more than one dispensary in this State, that 
applicant may receive preference for only one license in each license class. As long 
as there are other preferred applicants for any or all license classes, an applicant who 
owns, has a financial interest in or controls the management of more than one 
dispensaty in this State is not eligible for multiple licenses in any class. 
J. Preference must be given to an applicant who has at least 3 medical marijuana 
caregiver registrations when determining which applicants receive licenses. 
2. Investigation of qualifications. In investigating the qualifications of an applicant 
or a licensee, the state licensing authority for that applicant or licensee and municipality 
may have access to criminal history record information furnished by a law enforcement 
agency subject to any restrictions imposed by that agency. hi the event the state licensing 
authority or municipality considers the applicant's criminal hist01y record, the state 
licensing authority or municipality 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 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" t" to H.P. 176, L.D. 243 
items pe1taining to the time between the applicant's last criminal conviction and the 
consideration of the application for a license. 
At the time of filing an application for issuance of a retail marijuana establishment or 
retail marijuana social club license, an applicant shall submit a set of the applicant's 
fingerprints and personal history information concerning the applicant's qualifications for 
a license on forms prepared by the state licensing authority Depmtment of Administrative 
and Financial Services. The state licensing authority Depattment of Administrative and 
Financial Services shall submit the fingerprints and the municipality may forward 
fingerprints to the State Bureau of Investigation for criminal hist01y background 
information. The state licensing authority Depaitment of Administrative and Financial 
Services shall also forward the fingerprints to the Federal Bureau of Investigation for the 
purpose of conducting a federal fingerprint-based criminal hist01y record check. The 
state licensing authority Department of Administrative and Financial Services may 
·. acquire a name-based criminal hist01y record check for an applicant or a licensee 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 state licensing purposes may request that the fingerprints on file be used. The state 
licensing authority shall use the information resulting from the fingerprint-based criminal 
histo1y record check to investigate and determine whether an applicant is qualified to 
hold a license pursuant to this chapter. The state licensing authority or municipality may 
verify any of the information an applicant is required to submit. 
3. Applications; issuance. The following provisions govern applications for and 
issuance of a retail marijuana establishment or retail marijuana social club license by the 
Department of Administrative and Financial Services, referred to in this subsection as 
"the depattment." 
A. An applicant shall file an application in the form required by the state licensing 
authority depa1tment for the type of license sought, along with the application fee as 
set by the state licensing authority. 
B. An applicant may apply for and be granted more than one type of license except 
that a person licensed as a retail marijuana testing facility may not hold any other 
retail marijuana establishment license. 
Registered caregivers and registered 
dispensaries who have held a registration in good standing for 2 years by the date of 
the application must be given priority in the granting of licenses for a retail marijuana 
cultivation facility, retail marijuana products manufacturing facility or retail 
marijuana store license. The state licensing authority department shall begin 
accepting and processing applications by 30 days after the adoption of rules under 
section~ 2444-A, subsection 2. If after 90 days those applications do not meet 
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the maximum square footage allotment set by this chapter, the state licensing 
authority depattment may begin accepting and processing applications by all other 
qualified applicants. 
C. The state licensing authority depaitment shall issue or renew a license to operate a 
retail marijuana establishment or retail marijuana social club to an applicant who 
meets the requirements of the state licensing authority depattment, which must 
include a review of the site plan, operating plan and relevant experience in the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "g "to H.P. 176, L.D. 243 
marijuana industry in this State, as set forth in rule, within 90 days of the date of 
receipt of the application unless: 
(1) 
The state licensing authority department finds the applicant is not in 
compliance with this section or rnles adopted by the state licensing authority; 
(2) 
The state licensing authority department is notified by the relevant 
municipality that the applicant is not in compliance with an ordinance, rule or 
regulation in effect at the time of application; or 
(3) The number of retail marijuana establishments or retail marijuana social 
clubs allowed in the municipality has been limited pursuant to local ordinance or 
is limited by subsection 7 and the state licensing authority department has already 
licensed the maximum number of retail marijuana establishments or retail 
marijuana social clubs allowed in the municipality for the class of license that is 
sought. 
D. The following provisions govern the situation when more than one application is 
received by the state licensing authority department for establishment of a retail 
marijuana establishment or retail marijuana social club in the same municipality. 
(1) If a greater number of applications are received from qualified applicants to 
operate a retail marijuana store in a municipality than are allowed under the 
limits enacted by that municipality pursuant to subsection 4, the state licensing 
authority department shall solicit and consider input from the municipality as to 
the municipality's preferences for licensure. Within 180 days of the date the first 
application is received, the state licensing authority department shall issue the 
maximum number of applicable licenses. 
(2) In any competitive application process to determine which applicants receive 
licenses for any class of license, the state licensing authority department shall 
give first preference to an applicant who has at least 2 years of previous 
experience cultivating marijuana in compliance with Title 22, section 2423 and 
who has been continuously registered with the Department of Health and Human 
Services pursuant to the Maine Medical Use of Marijuana Act. Preference must 
be given to an applicant who has 3 medical marijuana caregiver registrations 
when detennining which applicants receive licenses. 
E. 
The state licensing authority depaitment may not grant a license for a retail 
marijuana establishment to a licensee who has already received a license to operate 
the same type of retail marijuana establishment if doing so would prevent another 
qualified applicant from receiving a license. The state licensing authority department 
may not grant a license for a retail marijuana social club to a licensee who has 
already received a license to operate a retail marijuana social club if doing so would 
prevent another qualified applicant from receiving a license. 
4. Limitation on number of retail marijuana stores. The state licensing authority 
Depaitment of Administrative and Financial Services may not limit the total number of 
retail marijuana stores in this State. A municipality may regulate the number of retail 
marijuana stores and the location and operation of retail marijuana establishments and 
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COMMITTEE AMENDMENT«{!," to H.P. 176, L.D. 243 
retail marijuana social clubs and may prohibit the operation of retail marijuana 
establishments and retail marijuana social clubs within its jurisdiction. 
5. 
Limitations on retail marijuana cultivation. 
The state licensing authority 
Depa1iment of Agriculture, Conservation and Forestly may establish limitations upon 
retail marijuana cultivation through one or more of the following methods: 
A. Placing or modifying a limit on the number of licenses that it issues, by class or 
overall, but in placing or modifying the limits, the state licensing authority 
Depaiiment of Agriculture, Conservation and Forestty shall consider the reasonable 
availability of new licenses after a limit is placed or modified; and 
B. Placing or modifying a limit on the amount of production permitted by a retail 
marijuana cultivation facility license or class of licenses based upon some reasonable 
metric or set of metrics, including, but not limited to, previous months' sales, pending 
sales or other reasonable metric as determined by the state licensing authority. 
6. Limitation on retail marijuana cultivation facility size. The amount of space 
approved for marijuana cultivation at retail marijuana cultivation facilities is limited to 
800,000 square feet of plant canopy, unless the state licensing authority Depaiiment of 
Agriculture, Conservation and Forestry, referred to in this subsection as "the depaiiment," 
determines that a greater amount may be needed to ensure an adequate supply to meet 
demand for various strains of marijuana throughout the State. 
An applicant must 
designate on the applicant's operating plan the size category of the licensed premises and 
the amount of actual square footage in the applicant's licensed premises that will be 
designated as plant canopy. 
The state licensing authority depatiment shall license 2 types of retail marijuana 
cultivation facilities, those with 3,000 square feet or less of plant canopy and those with 
more than 3,000 square feet of plant canopy. The state licensing authority department 
shall license marijuana cultivation at retail marijuana cultivation facilities by unit blocks 
of 10 feet by 10 feet, or 100 square feet, of plant canopy, with 40% of all licenses issued 
going to licensees of 30 unit blocks or less. The maximum amount of unit blocks allowed 
to a single licensee is 300. 
An applicant who applies for a retail marijuana cultivation facility license for a facility 
with more than 3,000 square feet of plant canopy but is not licensed by the state licensing 
authority depaiiment may be considered for a license for a facility with 3,000 square feet 
or less of plant canopy. 
No more than 6 retail marijuana cultivation facilities or more than 300 unit blocks of 
plant canopy may be located on the same parcel of prope1iy. 
The state licensing authority department may reduce the number of unit blocks a retail 
marijuana cultivation facility is authorized to cultivate if 50% or fewer of the unit blocks 
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a facility is authorized to cultivate are not used by the end of the first year of operation. 
7. Restrictions on applications for licenses. +he A state licensing authority may 
not approve an application for the issuance of a license pursuant to this chapter: 
A. If the application for the license concerns a location that is the same as or within 
1,000 feet of a location for which, within the 2 years immediately preceding the date 
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COMMIT!'EE AMENDMENT"B "to H.P. 176, L.D. 243 
of the application, the state 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; or 
B. Until it is established that the applicant is in or will be entitled to possession of the 
licensed premises for which application is made under a lease, rental agreement or 
other arrangement for possession of the premises or by vittue of ownership of the 
premises. 
Sec. 12. 7 MRSA §2448, sub-§1, as enacted by IB 2015, c. 5, § 1, is repealed and 
the following enacted in its place: 
1. State licensing authority may issue license. For the purpose of regulating the 
agricultural and retail aspects of marijuana as described in this chapter, each state 
licensing authority in its discretion, upon receipt of an application in the prescribed form, 
may issue and grant, subject to the provisions and restrictions provided by this chapter, to 
the applicant a license from one or more of the following classes. 
A. 
The Depattment of Agriculture, Conservation and Forestry may issue the 
following licenses: 
(1) Retail marijuana cultivation facility license; 
(2) Retail marijuana products manufacturing facility license; 
(3) Retail marijuana testing facility license; and 
( 4) Occupational licenses and registrations for owners, managers, operators, 
employees, contractors and other suppott staff employed at, working in or having 
access to restricted access areas of the premises licensed pursuant to this 
paragraph, as determined by the depmtment. 
B. The Depattment of Administrative and Financial Services may issue the following 
licenses: 
(1) Retail marijuana store license; 
(2) Retail marijuana social club license; and 
(3) Occupational licenses and registrations for owners, managers, operators, 
employees, contractors and other suppott staff employed at, working in or having 
access to restricted access areas of the premises licensed pursuant to this 
paragraph, as determined by the depa1tment. 
Sec. 13. 7 MRSA §2448, sub-§4, as enacted by IB 2015, c. 5, § 1, is amended to 
read: 
4. 
Retail marijuana cultivation facility license. 
The state licensing authority 
Department of Agriculture, Conservation and Forestry shall create a statewide licensure 
class system for retail marijuana cultivation facilities. 
A. The following provisions govern retail marijuana cultivation facilities. 
(I) A retail marijuana cultivation facility licensee is permitted to cultivate retail 
marijuana for sale and distribution only to licensed retail marijuana stores, retail 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "i "to H.P. 176, L.D. 243 
marijuana products manufacturing facilities, other retail marijuana cultivation 
facilities or retail marijuana social clubs. 
(2) A retail marijuana cultivation facility may have a retail marijuana store if it is 
located on the same licensed premises as the retail marijuana cultivation facility. 
If the retail marijuana cultivation facility chooses the option to have a retail 
marijuana store it must meet all requirements set by the state licensing authority 
Depai1ment of Administrative and Financial Services for retail marijuana stores 
and the municipality in which -it the retail marijuana store is located. A retail 
marijuana store located on the licensed premises of a retail marijuana cultivation 
facility does not count against any municipal limits on the number of retail 
marijuana stores. 
(3) A retail marijuana cultivation facility shall track the marijuana it cultivates 
from seed or immature plant to wholesale purchase. The state licensing authority 
Department of Agriculture, Conservation and Forestiy may not make rules that 
are unreasonably impracticable conceming the tracking of marijuana from seed 
or immature plant to wholesale purchase. 
( 4) A retail marijuana cultivation facility may provide, except as required by 
subsection 6, a sample of its products to a retail marijuana testing facility for 
testing and research purposes. 
A retail marijuana cultivation facility shall 
maintain a record of what was provided to the retail marijuana testing facility, the 
identity of the retail marijuana testing facility and the testing results. 
B. 
Retail marijuana may be transported between a licensed retail marijuana 
cultivation facility and retail marijuana stores; other retail marijuana cultivation 
facilities, retail marijuana products manufacturing facilities, retail marijuana social 
clubs and retail marijuana testing facilities. 
Sec. 14. 7 MRSA §2448, sub-§5, ~' as enacted by IB 2015, c. 5, §1, is 
repealed. 
Sec. 15. 7 MRSA §2448, sub-§10, as enacted by IB 2015, c. 5, §1, is amended to 
read: 
10. License fees. +he Each state licensing authority shall determine the revenue 
needed to set up the licensing and enforcement operations of the department that state 
licensing authority, as specified in section 2444-A, subsection 1 or 2, and set the fees 
applicable to the categmies as 01:1tlined licenses and registration authorized in subsection 
within the ranges specified in the following schedule: 
A. Retail marijuana store license, $250 to $2,500, with a $10 to $250 nonrefundable 
application fee; 
7 
B. Retail marijuana cultivation facility license, $10 to $100 per unit block, with a 
$10 to $250 nonrefundable application fee; 
C. Retail marijuana products manufacturing facility license, $100 to $1,000, with a 
$10 to $250 nonrefundable application fee; 
COMMITTEE AMENDMENT 
,' 
' •. 
'.{ 
{ \ 
COMMITTEE AMENDMENT"& " to H.P. 176, L.D. 243 
D. Retail marijuana testing facility license, $500, with a $10 to $250 nomefundable 
application fee; 
E. 
Retail marijuana social club license, $250 to $2,500, with a $10 to $250 
nonrefundable application fee; and 
F. 
Occupational licenses and registrations for owners, managers, operators, 
employees, contractors and other support staff employed at, working in or having 
access to restricted access areas of the licensed premises licensed by that state 
licensing authority, as determined by the that state licensing authority. 
Sec. 16. 7 MRSA §2448, sub-§20 is enacted to read: 
20. Investigation of unlawful activity. This chapter may not be construed to limit a 
law enforcement agency's ability to investigate unlawful activity in relation to a retail 
marijuana establishment or retail marijuana social club. A law enforcement agency may 
run a Maine criminal histoty record check of a licensee or an employee of a licensee 
during an investigation of unlawful activity related to retail marijuana and retail 
marijuana products. 
Sec. 17. 7 MRSA §2449, sub-§2, as enacted by IB 2015, c. 5, §1, is amended to 
read: 
2. 
Municipal approval required. 
A retail marijuana establishment or retail 
marijuana social club may not operate until it is licensed by the applicable state licensing 
authority pursuant to this chapter and approved by the municipality in which it is located. 
If an application is denied by the municipality, the licensee has 90 days to locate and 
obtain legal interest in another property in a municipality that approves of the retail 
marijuana establishment or retail marijuana social club before the license is revoked. 
Sec. 18. 7 MRSA §2450, last 1, as enacted by IB 2015, c. 5, §1, is amended to 
read: 
For a transfer of ownership, a licensee shall apply to the state licensing authority that 
issued the license for which a transfer is being sought on forms prepared and furnished by 
the that state licensing authority. 
Upon receipt of an application for transfer of 
ownership, the state licensing authority shall, within 7 days, submit a copy of the 
application to the appropriate municipality to determine whether the transfer complies 
with any local restriction on transfer of ownership. In determining whether to permit a 
transfer of ownership, the state licensing authority shall consider only the requirements of 
this chapter, any rules adopted by the state licensing authority and any other local 
restrictions. The municipality may hold a hearing on the application for transfer of 
ownership. The municipality may not hold a hearing pursuant to this section until the 
municipality has posted a notice of hearing in the manner described in section 2449, 
subsection 5 on the licensed premises for a period of 10 days and has provided notice of 
the hearing to the applicant at least 10 days prior to the hearing. 
Any transfer of 
ownership hearing by the state licensing authority must be held in compliance with the 
requirements specified for a municipality in this section. 
Sec. 19. 7 MRSA §2451, sub-§1, as enacted by IB 2015, c. 5, §1, is amended to 
read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "l> "to H.P. 176, L.D. 243 
1. 
Notice of new owner, officer, manager or employee. 
A retail marijuana 
establishment or retail marijuana social club shall notify the appropriate state licensing 
authority in writing of the name, address and date of bitth of an owner, officer, manager 
or employee before the new owner, officer, manager or employee begins managing, 
owning or associating with the establishment or club. The owner, officer, manager or 
employee must pass a fingerprint-based criminal history record check as required by the 
state licensing authority and obtain the required identification card prior to being 
associated with, managing, owning or working at the establishment or club. 
Sec. 20. 7 MRSA §2451, sub-§7, as enacted by IB 2015, c. 5, §1, is amended to 
read: 
7. Relocation of licensed premises. A licensee may move the permanent location 
of licensed premises to any other place in this State once permission to do so is granted 
by the state licensing authority that issued the license for those premises and municipality 
where the retail marijuana establishment or retail marijuana social club proposes to 
relocate. 
Upon receipt of an application for change of location, the state licensing 
authority shall, within 7 days, submit a copy of the application to the municipality to 
determine whether the transfer complies with all local restrictions on change of location. 
In permitting a change of location, the municipality where the retail marijuana 
establishment or retail marijuana social club proposes to relocate shall consider all 
reasonable restrictions that are or may be placed upon the new location by the governing 
board of the municipality. Any such change in location must be in accordance with all 
requirements of this chapter and rules adopted pursuant to this chapter. 
Sec. 21. 7 MRSA §2455 is enacted to read: 
§2455. Retail Marijuana Regulatory Coordination Fund 
The Retail Marijuana Regulat01y Coordination Fund, referred to in this section as 
"the fund," is established as a dedicated, nonlapsing other special revenue fund in the 
Depaitment of Administrative and Financial Services for use by the Department of 
Administrative and Financial Services and the Department of Agriculture, Conservation 
and Forestty. The fund must be administered and used by the commissioners of both 
depatiments for the purposes of adopting rules as required by this chapter and by any 
depa1tment of State Government that is authorized to adopt rules under this chapter. The 
commissioners of both depaitments may expend funds to enter into contracts with 
consultants and employ staff, as determined necessaty by the commissioners, conduct 
meetings with stakeholders and conduct other activities related to the operation of this 
chapter. 
Sec. 22. Progress reports. The Commissioner of Administrative and Financial 
Services and the Commissioner of Agriculture, Conservation and Forestry each shall 
submit written reports to the Joint Select Committee on Marijuana Legalization 
Implementation beginning 30 days after the effective date of this section and continuing 
every 30 days until February 1, 2018. The reports must indicate the amounts, dates and 
purposes of all expenditures and the fund balances available to each depattment as of the 
date of the report and must include a progress report on adopting rules as required by the 
Maine Revised Statutes, Title 7, section 2444-A. 
COMMITTEE AMENDMENT 
i1';: 
/-· :,). 
I' 
COMMITTEE AMENDMENT"~ "to H.P. 176, L.D. 243 
Sec. 23. Transfer from General Fund unappropriated surplus; Retail 
Marijuana Regulatory Coordination Fund, Other Special Revenue Funds 
account; fiscal year 2016-17. Notwithstanding any other provision of law, the State 
Controller shall transfer $1,100,000 from the General Fund unappropriated surplus to the 
Retail Marijuana Regulatory Coordination Fund program, Other Special Revenue Funds 
account within the Department of Administrative and Financial Services no later than 10 
days after the effective date of this Act. 
Sec. 24. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Retail Marijuana Regulatory Coordination Fund N233 
Initiative: Allocates funds to establish the Retail Marijuana Regulato1y Coordination 
Fund. 
OTHER SPECIAL REVENUE 
FUNDS 
All Other 
OTHER SPECIAL REVENUE 
FUNDS TOTAL 
ADMINISTRATIVE AND 
FINANCIAL SERVICES, 
DEPARTMENT OF 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE 
FUNDS 
DEPARTMENT TOTAL-ALL 
FUNDS 
2016-17 
2017-18 
2018-19 
$1,100,000 
$0 
$0 
$1,100,000 
$0 
$0 
2016-17 
2017-18 
2018-19 
$1,100,000 
$0 
$0 
$1,100,000 
$0 
$0 
LEGISLATURE 
Legislature 0081 
Initiative: Appropriates funds on a one-time basis to the Legislature to provide resources 
for the Joint Select Committee on Marijuana Legalization Implementation for the 
purposes of covering the costs of consultant services and necessary travel and expenses 
and any other purposes determined to be appropriate by the Joint Select Committee on 
Marijuana Legalization Implementation to assist the committee in the performance of its 
duties. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" B 
"to II.P. 176, L.D. 243 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
LEGISLATURE 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL 
FUNDS 
SECTION TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE 
FUNDS 
SECTION TOTAL - ALL FUNDS 
2016-17 
$500,000 
$500,000 
2016-17 
$500,000 
$500,000 
2016-17 
$500,000 
$1,100,000 
$1,600,000 
SUMMARY 
This amendment is the minority report of the committee. 
2017-18 
$0 
$0 
2017-18 
$0 
$0 
2017-18 
$0 
$0 
$0 
2018-19 
$0 
$0 
2018-19 
$0 
$0 
2018-19 
$0 
$0 
$0 
The amendment strikes the bill and changes the title. The amendment also does the 
following. 
1. It provides that the Department of Administrative and Financial Services serves as 
the state licensing authority for retail purposes under the Marijuana Legalization Act. 
2. It provides that the Department of Agriculture, Conservation and Forestry serves 
as the state licensing authority for agricultural purposes under the Marijuana Legalization 
Act. 
3. It assigns to the Depaiiment of Agriculture, Conservation and Forestry licensing 
and regulatory jurisdiction from the point of marijuana seed, clone, seedling and plant, 
through cultivation, use of pesticides, harvesting, preparation of marijuana, retail 
marijuana manufacturing and retail marijuana products manufacturing to the testing, 
packaging and labeling of marijuana, retail marijuana and retail marijuana products. 
4. It assigns to the Depaiiment of Administrative and Financial Services licensing 
and regulatory jurisdiction over retail marijuana and retail marijuana products distribution 
and tracking, retail marijuana stores and retail marijuana social clubs. 
7 
5. It appropriates funds for consultant services and necessary travel and expenses and 
8 
other appropriate purposes as determined by the Joint Select Committee on Marijuana 
COMMITTEE AMENDMENT 
COMMIITEE AMENDMENT" g 
"to H.P. 176, L.D. 243 
Legalization Implementation in the amount of $500,000 to the Legislature for use by the 
Joint Select Committee on Marijuana Legalization Implementation and allocates funds in 
the amount of $1,100,000 for the Retail Marijuana Regulatory Coordination Fund. The 
amendment establishes the Retail Marijuana Regulatory Coordination Fund and 
authorizes its use by the Commissioner of Administrative and Financial Services and the 
Commissioner of Agriculture, Conservation and Forestry. The amendment requires the 2 
commissioners to rep01t to the Joint Select Committee on Marijuana Legalization 
Implementation beginning 30 days after the effective date and continuing every 30 days 
until February 1, 2018. The repo1ts must provide information on the expenditure of funds 
and the progress on adopting required rules. 
6. It changes the allocation of the definition of "disqualifying drug offense" from the 
Maine Revised Statutes, Title 7, section 2447, subsection 1, paragraph B to the 
definitions section in Title 7, section 2442, subsection 9-A to comport with drafting 
standards. 
7. It changes the allocation of a provision on investigation of unlawful activity from 
Title 7, section 2448, subsection 5, paragraph D to section 2448, subsection 20. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/03/17 $?.ac:.. 
LD243 
LR 2223(03) 
An Act To Change the Oversight Agency for Recreational Marijuana from the Department of 
Agriculture, Conservation and Forestry to the Department of Administrative and Financial Services, 
Bureau of Alcoholic Beverages and Lottery Operations and To Allocate Funds for Implementation 
Fiscal Note for Bill as Amended by Committee Amendment '/3'( H-J).),) 
Committee: Marijuana Legalization Implementation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2016-17 
FY 2017-18 
FY 2018-19 
Projections 
FY 2019-20 
Projections 
FY 2020-21 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Other Special Revenue Funds 
Transfers 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
$1,600,000 
$500,000 
$1,100,000 
($1,100,000) 
$1,100,000 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
This bill establishes the Retail Marijuana Regulatory Coordination Fund within the Department of Administrative and 
Financial Services (DAFS). It provides for a $1,100,000 transfer from the unappropriated surplus of the General Fund 
in fiscal year 2016-17 to the fund and includes an Other Special Revenue Funds allocation of $1, 100,000 in fiscal year 
2016-17 for use by the Bureau of Alcoholic Beverages and Lottery Operations (BABLO) within DAFS and the 
Department of Agriculture, Conservation and Forestry (DACF) to conduct rulemaking, enter into contracts with 
consultants, hire staff and implement other activities of this bill. The BAB LO is assigned as the state licensing 
authority for retail purposes under the Marijuana Legalization Act. The bill retains the DACF as the state licensing 
authority for agricultural purposes under the Act. It directs both departments to adopt rules to implement the amended 
provisions of the Marijuana Legalization Act. 
The bill also includes a one-time General Fund appropriation of $500,000 in 2016-17 to the Legislature to provide 
resources for the Joint Select Committee on Marijuana Legalization Implementation for the costs of consultant 
services and necessary travel and expenses and any other purposes determined to be appropriate to assist the 
committee in the perfonnance of its duties. 
Both BABLO and DACF have indicated that additional positions are required to implement the provisions of the bill. 
Additional appropriations or allocations may be required in the intermediary period between this bill and the full 
program implementation of marijuana legalization. 
LR2223(03) - Fiscal Note - Page I of I