An Act To Change the Oversight Agency for Recreational Marijuana from the Depatiment of Agriculture, Conservation and Forestry to the Depatiment 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_A_H221 (House)
Amends: 7 MRSA §1-C, 7 MRSA §2442, 7 MRSA §2444, 7 MRSA §2445, 7 MRSA §2446, 7 MRSA §2448, 7 MRSA §2455

COMMITTEE AMENDMENT "/J " to H.P. 176, L.D. 243, Bill, "An Act To 
Change the Oversight Agency for Recreational Marijuana from the Depatiment of 
Agriculture, Conservation and Forestry to the Depatiment 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 Amend the Marijuana Legalization Act to Provide Licensing, 
Rulemaking and Regulatory and Enforcement Authority within the Department of 
Administrative and Financial Services; Assign Rulemaking, Regulatory and 
Enforcement Authority Related to Agricultural Purposes to the Department of 
Agriculture, Conservation and Forestry; and Allocate Funds for Implementation I 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inse1iing the following: 
'Sec.1. 7 MRSA §1-C is enacted to read: 
§1-C. Rules and regulatory and enforcement authority regarding the Marijuana 
Legalization Act 
1. Rules and regulatory and enforcement authority. The depatiment shall adopt 
rules and exercise regulatory and enforcement authority regarding retail marijuana 
cultivation facilities, retail marijuana manufacturing facilities and retail marijuana testing 
facilities licensed by the Department of Administrative and Financial Services pursuant to 
section 2444. This authority petiains to marijuana cultivation, including, but not limited 
to, all aspects of marijuana seeds, clones, seedlings and plants, use of pesticides, 
harvesting and storage, and the preparation, manufacturing, testing, packaging and 
labeling of retail marijuana under the Marijuana Legalization Act. 
2. Effective administration and enforcement. For the purposes of the effective 
administration and enforcement of chapter 417, the department and the Department of 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to H.P. 176, L.D. 243 
Administrative and Financial Services shall work cooperatively to ensure that rules are 
adopted and the Marijuana Legalization Act is implemented and enforced in a manner 
that is consistent with the requirements of chapter 417. 
Sec. 2. 7 MRSA §2442, sub-§7, as enacted by IB 2015, c. 5, §1, is amended to 
read: 
7. 
Commissioner. 
"Commissioner" means the Commissioner of Agrieulture, 
Conservation and Forestry Administrative and Financial Services. 
Sec. 3. 7 MRSA §2442, sub-§9, as enacted by IB 2015, c. 5, §1, is amended to 
read: 
9. Department. "Department" means the Department of Agrieulture, Conservation 
and Forestry Administrative and Financial Services. 
Sec. 4. 7 MRSA §2444, as amended by PL 2017, c. 1, §6, is further amended to 
read: 
§2444. State licensing authority 
For the purpose of regulating and controlling the licensing of the cultivation, 
manufacture, distribution, testing, tracking from seed or clone to sale and sale of retail 
marijuana and retail marijuana products and the licensing of retail marijuana social clubs 
in this State, the state licensing authority is the Depa1tment of Agrieulture, Conservation 
and Forestt)' depatiment. 
1. 
Commissioner is chief administrative officer. 
The Commissioner of 
Agrieukure, Conservation and Forestl)' commissioner is the chief administrative officer 
of the state licensing authority and may employ such officers and employees as may be 
determined to be necessary. The state licensing authority has the authority to: 
A. Grant or refuse licenses for the cultivation, manufacture, distribution, sale and 
testing of retail marijuana and retail marijuana products and licenses for the operation 
of retail marijuana social clubs as provided by this chapter; 
B. Suspend, fine, restrict or revoke licenses under paragraph A upon a violation of 
this chapter or any rule adopted pursuant to this chapter; and 
C. hnpose any penalty authorized by this chapter or any rule adopted pursuant to this 
chapter. 
2. Adoption of rules by commissioner. The state licensing authority shall adopt 
rules for the proper regulation and control of the eultivation, manufaeture, distribution, 
tracking and sale and testing by retail marijuana stores of retail marijuana and retail 
marijuana products; for the licensing and operation of retail marijuana social clubs; and 
5 
for the enforcement of this chapter, not later than 9 months after the effeetive date of this 
Aet, and shall adopt amended amend rules and sueh speeial rules and make findin.gs as 
necessary. For the purpose of adopting and amending rules pursuant to this subsection, 
8 
the commissioner may delegate rule-making authority granted under this section to the 
Commissioner of Administrative and Fin.an.eial Services Agriculture, Conservation and 
Forestry, the Commissioner of Labor or the Commissioner of Public Safety, or both, if 
the commissioner determines that the expertise and resources of those other depatiments 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT;.\ "to H.P. 176, L.D. 243 
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 issues: 
A. The hoarin.g of oontostod state lioon.so don.ials appeal of the denial of a license 
issued pursuant to this chapter at a public hearing, employing full due process, 
including the subpoena power, the taking of oaths, the calling of witnesses and the 
maintaining of 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 hearings contesting the imposition of a fine; 
B. 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; 
C. The preparation and transmission annually, in the fonn and manner prescribed by 
this chapter, of a report to the Legislature accounting for the efficient discharge of all 
responsibilities assigned by law or rules to the state licensing authority; 
D. Procedures consistent with this chapter for the issuance, renewal, suspension and 
revocation of licenses to operate retail marijuana establishments and retail marijuana 
social clubs; 
B. Limits on. tho oon.oon.tration. of THC an.d other oan.n.abin.oids per servin.g in any 
retail marijuana produot; 
F. 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 entities licensed pursuant to this chapter; and 
G. 
Security requirements for any lioon.sod premises licensed as retail marijuana 
stores, retail marijuana testing facilities and retail marijuana social clubs under this 
chapter including, at a minimum, lighting, physical security, alarm requirements and 
other minimum procedures for internal control as determined necessary by the state 
licensing authority 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 impracticablet 
and.,_ 
H. Soouring an.d reoordin.g permission. for a looal fire departmen.t or the State Fire 
Marshal to oonduot an annual fire in.speotion of a retail rnarijuan.a cultivation. facility. 
3. 
Adoption of rules by Commissioner of Agriculture, Conservation and 
Forestry. The Commissioner of Agriculture, Conservation and Forestty shall adopt rules 
for the proper regulation and control of the cultivation, manufacture and testing ofretail 
marijuana and retail marijuana products and shall amend rules as necessaiy. For the 
purpose of adopting and amending rules pursuant to this subsection, the Commissioner of 
Agriculture, Conservation and Forestty may delegate rnle-making authority granted under 
this section 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 Forestry determines that the expertise and resources of 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"(\ "to H.P. 176, L.D. 243 
those other depatiments would be beneficial in the development of the rules and the 
enforcement of those rules. Rules adopted pursuant to this subsection are major 
substantive rules as defined in Title 5, chapter 375, subchapter 2-A. Rules must address 
but are not limited to the following issues: 
A. The appeal of the denial of a license issued pursuant to this chapter at a public 
hearing, employing full due process, including the subpoena power, the taking of 
oaths, the calling of witnesses and the maintaining of 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 hearings contesting the imposition 
of a fine; 
B. The development of any forms, licenses, identification cards and applications that 
are necessaty for the administration of this chapter or of any of the rules adopted 
under this chapter; 
C. The preparation and transmission annually, in the form and manner prescribed by 
this chapter, of a repmi to the Legislature accounting for the efficient discharge of all 
responsibilities assigned by law or rules to the Depatiment of Agriculture, 
Conservation and Forestry; 
D. Procedures consistent with this chapter for the issuance, renewal, suspension and 
revocation of licenses to operate retail marijuana cultivation facilities, retail 
marijuana production facilities and retail marijuana testing facilities; 
E. Limits on the concentration of THC and other cannabinoids per serving in any 
retail marijuana product; 
F. Security requirements for any premises licensed as a retail marijuana cultivation 
facility, retail marijuana products manufacturing facility or retail marijuana testing 
facility under this chapter including, at a minimum, lighting, physical security, alarm 
requirements and other minimum procedures for internal control as determined 
necessaty by the state licensing authority 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 
G. Securing and recording permission for a local fire depatiment or the State Fire 
Marshal to conduct an annual fire inspection of a retail marijuana cultivation facility. 
Sec. 5. 7 MRSA §2445, first 1, as amended by PL 2017, c. 1, §7, is further 
5 
amended to read: 
Beginning February 1, 2018, the state licensing authority shall establish, within a 
specific time frame, a retail marijuana and retail marijuana products independent testing 
8 
and ce1iification 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. The Commissioner of Agriculture, Conservation and Forestry shall 
adopt rules regarding retail marijuana testing facilities as authorized by sections 1-C and 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"~ "to H.P. 176, L.D. 243 
2444, subsection 2. Rules adopted pursuant to this section are major substantive rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 6. 7 MRSA §2446, sub-§2, as enacted by IB 2015, c. 5, §1, is amended to 
read: 
2. Health and safety rules. The state licensing authority and the Department of 
Agriculture, Conservation and Forestry, as provided in section 2444, subsections 2 and 3, 
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, the sale of retail marijuana by a retail marijuana store and the cultivation of 
retail marijuana, which must include: 
A. Limitations on the display of retail marijuana and retail marijuana products; 
B. Regulation of the storage of, warehouses for and transp01iation of retail marijuana 
and retail marijuana products; and 
C. 
Sanitary requirements for retail marijuana establishments, including but not 
limited to sanitary requirements for the preparation of retail marijuana products. 
Sec. 7. 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 shall 
create a statewide licensure class system for retail marijuana cultivation facilities. The 
Commissioner of Agriculture, Conservation and Forestty shall adopt rules to implement 
the statewide licensure class system. Rules adopted pursuant to this subsection are major 
substantive rules as defined in Title 5, chapter 375, subchapter 2-A. 
A. The following provisions govem retail marijuana cultivation facilities. 
(1) A retail marijuana cultivation facility licensee is permitted to cultivate retail 
marijuana for sale and distribution only to licensed retail marijuana stores, retail 
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. 
0 
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.,_ 
the Department of Agriculture, Conservation and Forest1y and the municipality in 
which it is located. A retail marijuana store located on the licensed premises of a 
retail marijuana cultivation facility does not count against any municipal limits 
5 
on the number of retail marijuana stores. 
(3) A retail marijuana cultivation facility shall track the marijuana it cultivates 
7 
from seed, clone or immature plant to wholesale purchase. The state lieensing 
authority Commissioner of Agriculture, Conservation and Forestty may not make 
rules that are unreasonably impracticable concerning the tracking of marijuana 
from seed, clone or immature plant to wholesale purchase. 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT"~ "to H.P. 176, L.D. 243 
( 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. 
O 
Sec. 8. 7 MRSA §2448, sub-§6, as enacted by IB 2015, c. 5, § 1, is amended to 
read: 
6. Retail marijuana testing facility license. A retail marijuana testing facility 
license may be issued to a person who performs testing and research on retail marijuana. 
The facility may develop and test retail marijuana products. 
The state lieensing authority Department of Agriculture, Conservation and Forestty shall 
adopt rules pursuant to its authority in section 2445 related to acceptable testing and 
research practices, including but not limited to testing, standards, quality control analysis, 
equipment certification and calibration, chemical identification and other practices used 
in bona fide research methods. Rules adopted pursuant to this subsection are major 
substantive rules as defined in Title 5, chapter 375, subchapter 2-A. 
A. A person that has an interest in a retail marijuana testing facility license from the 
state licensing authority for testing purposes may not have any interest in a registered 
dispensary, a registered caregiver, a licensed retail marijuana store, a licensed retail 
marijuana social club, a licensed retail marijuana cultivation facility or a licensed 
retail marijuana products manufacturing facility. A person that has an interest in a 
registered dispensaty, a registered caregiver, a licensed retail marijuana store, a 
licensed retail marijuana social club, a licensed retail marijuana cultivation facility or 
a licensed retail marijuana products manufacturing facility may not have an interest 
in a facility that has a retail marijuana testing facility license. For purposes of this 
paragraph, "interest" includes an ownership interest or partial ownership interest or 
any other type of financial interest, such as being an investor or serving in a 
management position. 
B. Retail marijuana and retail marijuana products may be transported between the 
licensed retail marijuana testing facility and retail marijuana cultivation facilities, 
retail marijuana products manufacturing facilities, retail marijuana stores and retail 
marijuana social clubs. 
Sec. 9. 7 MRSA §2448, sub-§8, as enacted by IB 2015, c. 5, §1, is amended to 
read: 
8. Inspection of books and records. Each licensee shall keep a complete set of all 
records necessary to show fully the business transactions of the licensee, all of which 
must be open at all times during business hours for the inspection and examination by the 
state licensing authority or its duly authorized representatives and the Department of 
Agriculture, Conservation and Forestty and its duly authorized representatives. The state 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT" A 
"to H.P. 176, L.D. 243 
licensing authority and the Department of Agriculture, Conservation and Forestry may 
require any licensee to furnish such information as it the department considers necessa1y 
for the proper administration of this chapter and may require an audit to be made of the 
books of account and records on such occasions as it the depatiment may consider 
necessaty by an auditor to be selected by the state licensing authority. The auditor must 
have access to all books and records of the licensee, and the cost of the audit must be paid 
by the licensee. 
The licensed premises, including any places of storage, where retail marijuana or retail 
marijuana products are stored, cultivated, sold, dispensed or tested are subject to 
inspection by the State or the municipality in which the licensed premises are located and 
by the investigators of the State or municipality during all business hours and other times 
of apparent activity for the purpose of inspection or investigation. Access must be 
granted during business hours for examination of any inventory or books and records 
required to be kept by a licensee. When any part of the licensed premises consists of a 
locked area, upon demand to the licensee this area must be made available for inspection, 
and, upon request by authorized representatives of the State or municipality, the licensee 
shall open the area for inspection. 
Each licensee shall retain all books and records necessary to show fully the business 
transactions of the licensee for a period comprising the current tax year and the 2 
immediately preceding tax years. 
Sec. 10. 7 MRSA §2455 is enacted to read: 
§2455. Retail Marijuana Regulatory Coordination Fund 
The Retail Marijuana Regulatory Coordination Fund, referred to in this section as 
"the fund," is established as a dedicated, nonlapsing Other Special Revenue Funds 
account in the department. The fund is administered and used by the commissioner for 
the purposes of adopting rules as required by this chapter by the department and by any 
other depatiment of State Government that is authorized to adopt rules under this chapter. 
The commissioner may expend funds to enter into contracts with consultants and employ 
staff, as determined necessa1y by the commissioner, conduct meetings with stakeholders 
and conduct other activities related to the operation of this chapter. 
Sec. 11. 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 to the 
contra1y, the State Controller shall transfer $1,400,000 from the General Fund 
unappropriated surplus to the Retail Marijuana Regulat01y Coordination Fund program, 
Other Special Revenue Funds account within the Depatiment of Administrative and 
7 
Financial Services no later than 10 days after the effective date of this Act. 
Sec. 12. Progress reports. The Depatiment of Administrative and Financial 
Services shall report to the Joint Select Committee on Marijuana Legalization 
Implementation 60 days after the effective date of this Act and every 60 days thereafter 
until final adjournment of the Second Regular Session of the 128th Legislature. The 
report must provide information on the progress of the Depatiment of Administrative and 
COMMITTEE AMENDMENT 
)L.. 
COMMITTEE AMENDMENT"~ "to H.P. 176, L.D. 243 
Financial Services, the Department of Agriculture, Conservation and Forestry and all 
other state departments involved with implementing the Marijuana Legalization Act. 
Sec. 13. 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 Regulat01y 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 
$1,400,000 
$1,400,000 
2016-17 
$1,400,000 
$1,400,000 
2017-18 
2018-19 
$0 
$0 
$0 
$0 
2017-18 
2018-19 
$0 
$0 
$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 detennined to be appropriate by the Joint Select Committee on 
Marijuana Legalization Implementation to assist the committee in the performance of its 
duties. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2016-17 
$200,000 
$200,000 
2017-18 
$0 
$0 
COMMITTEE AMENDMENT 
2018-19 
$0 
$0 
COMMITTEE AMENDMENT ,i" to H.P. 176, L.D. 243 
LEGISLATURE 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL 
FUNDS 
SECTION TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE 
FUNDS 
SECTION TOTAL - ALL FUNDS 
2016-17 
$200,000 
$200,000 
2016-17 
$200,000 
$1,400,000 
$1,600,000 
SUMMARY 
2017-18 
$0 
$0 
2017-18 
$0 
$0 
$0 
2018-19 
$0 
$0 
2018-19 
$0 
$0 
$0 
This amendment is the majority report of the committee. The amendment changes 
the title, strikes the bill and does the following. 
1. 
The amendment assigns to the Department of Administrative and Financial 
Services authority to license the distribution, tracking and sale of retail marijuana and 
retail marijuana products and the licensure ofretail marijuana social clubs. 
2. 
The amendment assigns to the Department of Administrative and Financial 
Services rule-making, regulatory and enforcement authority regarding the tracking, 
distribution and sale of retail marijuana and retail marijuana products and the licensing 
and operation of retail marijuana social clubs. 
3. 
The amendment assigns to the Department of Agriculture, Conservation and 
Forestry rule-making, regulat01y and enforcement authority regarding marijuana 
cultivation, including, but not limited to, all aspects of marijuana seeds, clones, seedlings 
and plants, use of pesticides, harvesting and storage, and the preparation, manufacturing, 
production, packaging, labeling and testing of retail marijuana. 
The amendment 
authorizes the Commissioner of Agriculture, Conservation and Forestry to delegate rule-
making authority 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 Forestry determines the expertise and resources of those 
other departments would be beneficial to the development and enforcement of rules. 
4. The amendment directs the Department of Administrative and Financial Services 
and the Department of Agriculture, Conservation and Forestty to work cooperatively to 
8 
ensure that rules are adopted and the Marijuana Legalization Act is implemented and 
9 
enforced in a manner that is consistent with the requirements of that Act. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to H.P. 176, L.D. 243 
5. The amendment establishes the Retail Marijuana Regulatory Coordination Fund to 
provide funding for rulemaking, entering into contracts with consultants and employing 
staff, conducting meetings with stakeholders and conducting other activities related to 
retail marijuana. 
6. The amendment appropriates funds for consultant services and necessary travel 
and expenses and other purposes determined to be appropriate by the Joint Select 
Committee on Marijuana Legalization Implementation in the amount of $200,000 to the 
Legislature for use by the committee and in the amount of $1,400,000 for use by the 
Depaitment of Administrative and Financial Services. 
The appropriation to the 
Legislature is a nonlapsing appropriation. The Retail Marijuana Regulatory Coordination 
Fund is a nonlapsing Other Special Revenue Funds account. The amendment requires the 
Depa1tment of Administrative and Financial Services to report to the Joint Select 
Committee on Marijuana Legalization Implementation 60 days after the effective date of 
the Act and every 60 days thereafter until final adjournment of the Second Regular 
Session of the 128th Legislature. The report must provide information on the progress of 
the Department of Administrative and Financial Services and all other state departments 
involved with implementing the Marijuana Legalization Act. 
7. 
The amendment corrects and separates references to the Depaitment of 
Administrative and Financial Services and the Department of Agriculture, Conservation 
and Forestry in order for the 2 departments to perform the roles in the implementation of 
marijuana legalization that are assigned by the Maine Revised Statutes, Title 7, section 
1-C and section 2444, subsection 1. 
FISCAL NOTE REQUIRED 
(See auachcd) 
COMMITTEE AMENDMENT 
Approved: 05/03/17 feac:::.. 
LD243 
LR2223(02) 
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 'ff { J/.,. ;t:U) 
Committee: Marijuana Legalization Implementation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2016-17 
FY 2017-18 
FY 2018-19 
Projections 
FY 2019-20 
Projections 
FY2020-21 
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 
$200,000 
$1,400,000 
($1,400,000) 
$1,400,000 
$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 $1,400,000 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 $1,400,000 in fiscal year 
2016-17 for use by the Bureau of Alcoholic Beverages and Lottery Operations (BAB LO) within DAFS and the 
Department of Agriculture, Conservation and Forest1y (DACF) to conduct rulemaking, enter into contracts with 
consultants, hire staff and implement other activities of this bill. The BABLO is assigned as the state licensing 
authority to regulate and control the licensing of the cultivation, manufacture, distribution, testing and sale ofretail 
marijuana and the licensure ofretail marijuana.social clubs. The bill retains the DACF as the state regulatory authority 
regarding marijuana cultivation, marijuana seeds, clones, seedlings, plants, use of pesticides, harvesting, storage, 
preparation, manufacturing, production, labeling and testing ofretail marijuana. 
The bill also includes a one-time General Fund appropriation of $200,000 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 necessaiy travel and expenses and any other pmposes determined to be appropriate to assist the 
committee in the performance 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(02) - Fiscal Note - Page 1 of 1