An Act To Amend the Marijuana Legalization Act and the Laws Governing the Taxation of Marijuana
Maine Legislature, Session 130, LD 1029
Committee: Veterans and Legal Affairs
Sponsors: LUCHINI
Amends: 28-B MRSA §501, 36 MRSA §4923

Legislative Document
No. 1029
S.P. 324
In Senate, March 10, 2021
An Act To Amend the Marijuana Legalization Act and the Laws 
Governing the Taxation of Marijuana
(EMERGENCY)
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204.
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator LUCHINI of Hancock.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, licenses to authorize the cultivation, manufacture, testing and sale of adult 
use marijuana and adult use marijuana products began to be issued in September of 2020; 
and
Whereas, the changes to the adult use marijuana laws in this legislation are critical to 
sustainability and growth of a critical source of revenue in the midst of an ongoing 
economic crisis; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1.  28-B MRSA §501, sub-§6, as amended by PL 2019, c. 231, Pt. B, §3, is 
further amended to read:
6.  Limited authorization for sale of marijuana plants and, marijuana seeds, 
marijuana flower and marijuana trim by registered caregiver or registered 
dispensary to cultivation facility licensee.  Notwithstanding any other provision of law 
to the contrary and subject to the requirements and restrictions of this section, for a period 
starting on the date that the department issues the first active cultivation facility license 
under section 205, subsection 4, except as provided in paragraph A, and ending 2 years 
after that date, a registered caregiver or a registered dispensary may sell marijuana plants 
and, marijuana seeds, marijuana flower and marijuana trim to a cultivation facility licensee 
that is also a registered caregiver or a registered dispensary and a cultivation facility 
licensee that is also a registered caregiver or a registered dispensary may purchase 
marijuana plants and, marijuana seeds, marijuana flower and marijuana trim from a 
registered caregiver or a registered dispensary.  The department shall post on its publicly 
accessible website information regarding the date on which the department issues the first 
active cultivation facility license and the date that is 2 years after the date the first active 
cultivation facility license is issued.
A.  Beginning on the date that the department issues the first active cultivation facility 
license and, except as provided by the department by rule pursuant to this paragraph, 
ending 2 years after that date, in an active cultivation facility license issued to any 
cultivation facility licensee that has demonstrated to the department's satisfaction that 
the licensee is also a registered caregiver or a registered dispensary, the department 
shall include language authorizing the licensee, at any time within the licensee's first 
year of licensure and prior to the expiration of the authorized transfer period, to 
purchase an unlimited number of marijuana plants and marijuana seeds and an 
unlimited amount of marijuana flower and marijuana trim from registered caregivers 
and registered dispensaries.  This authorization may not be included in any license 
issued upon renewal under section 209.  The department may by rule extend the end 
date for the authorized transfer period under this subsection beyond 2 years after the 
date the department issues the first active cultivation facility license.  If the department 
adopts by rule a later end date for the authorized transfer period under this paragraph, 
beginning on the effective date of the rule, the department shall use that later end date 
in providing the authorization that may be granted pursuant to this paragraph to a 
cultivation facility licensee.
B.  A cultivation facility licensee authorized pursuant to paragraph A to purchase 
marijuana plants and, marijuana seeds, marijuana flower and marijuana trim from 
registered caregivers and registered dispensaries that transacts such a purchase shall 
pay to the State Tax Assessor the excise taxes imposed pursuant to Title 36, chapter 
on the sale of the marijuana plants and, marijuana seeds, marijuana flower and 
marijuana trim.  In addition to payment of the required excise taxes under this 
paragraph, the cultivation facility licensee shall provide the department with an 
accounting of the transaction, which must include information on the registered 
caregiver or registered dispensary from which the licensee purchased the marijuana 
plants and, marijuana seeds, marijuana flower and marijuana trim; the number of 
mature marijuana plants, immature marijuana plants, seedlings and marijuana seeds 
purchased in the transaction; the amount, by weight, of marijuana flower and marijuana 
trim purchased in the transaction; and any other information required by the department 
by rule.
C.  A cultivation facility licensee authorized pursuant to paragraph A to purchase 
marijuana plants and, marijuana seeds, marijuana flower and marijuana trim from 
registered caregivers and registered dispensaries may purchase an unlimited number of 
marijuana plants and marijuana seeds and an unlimited amount of marijuana flower 
and marijuana trim from more than one registered caregiver or registered dispensary 
and may transact more than one purchase of marijuana plants and marijuana seeds such 
items from a registered caregiver or registered dispensary.  A Until October 1, 2021, a 
registered caregiver or registered dispensary may not sell marijuana plants and, 
marijuana seeds, marijuana flower and marijuana trim to more than one cultivation 
facility licensee authorized pursuant to paragraph A to purchase marijuana plants and 
marijuana seeds such items from registered caregivers and registered dispensaries and 
may not transact more than one sale of marijuana plants and marijuana seeds such items 
to a cultivation facility licensee authorized to make such purchases pursuant to 
paragraph A.  The department may by rule extend the end date by which a registered 
caregiver or registered dispensary may make unlimited authorized transfers to 
cultivation facility licensees beyond October 1, 2021.
(1)  If the department adopts by rule a later end date for the unlimited authorized 
transfers by registered caregivers and registered dispensaries under this paragraph, 
beginning on the effective date of the rule, the department shall use that later end 
date.
(2)  If the department does not adopt by rule a later end date for the unlimited 
authorized transfers by registered caregivers and registered dispensaries under this 
paragraph, any registered caregiver or registered dispensary that has already made 
a transfer or transfers under this paragraph may make one additional authorized 
transfer to one cultivation facility licensee under this paragraph after October 1, 
2021.  Any registered caregiver or registered dispensary that has not made an 
authorized transfer before October 1, 2021 may make one authorized transfer to 
one cultivation facility licensee until such transfers are no longer permitted under 
paragraph A.
D.  A cultivation facility licensee that violates this subsection or the rules adopted 
pursuant to this subsection is subject to the imposition by the department of monetary 
penalties, a license revocation or suspension and an order directing the destruction of 
unauthorized marijuana plants and, marijuana seeds, marijuana flower and marijuana 
trim pursuant to subchapter 8 in addition to any criminal or civil penalties that may be 
imposed pursuant to other applicable laws or rules.  A registered caregiver or registered 
dispensary that violates paragraph C this subsection or the rules adopted pursuant to 
this subsection is subject to the revocation of its registration or other applicable penalty 
under the Maine Medical Use of Marijuana Act in addition to any criminal or civil 
penalties that may be imposed pursuant to other applicable laws or rules.
The department shall adopt rules to implement this subsection.  Rules adopted pursuant to 
this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 
2-A.
PART B
Sec. B-1.  36 MRSA §4923, sub-§5, as enacted by PL 2019, c. 231, Pt. B, §7, is 
amended to read:
5.  Excise tax on purchases from registered caregivers and registered dispensaries.   
A cultivation facility licensee authorized pursuant to Title 28‑B, section 501, subsection 6, 
paragraph A to purchase marijuana plants and, marijuana seeds, marijuana flower and 
marijuana trim from registered caregivers and registered dispensaries that transacts such a 
purchase shall pay to the assessor the excise taxes that would have been imposed under 
subsections 1 to 4 on the sale of the marijuana plants and, marijuana seeds, marijuana 
flower and marijuana trim if the marijuana plants and, marijuana seeds, marijuana flower 
and marijuana trim had been sold by a cultivation facility licensee to another licensee.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill makes the following changes to the Marijuana Legalization Act and the laws 
governing the taxation of marijuana.
1.  It permits an adult use cultivation facility licensee to accept from registered 
caregivers and registered dispensaries unlimited transfers of marijuana plants, marijuana 
seeds, marijuana flower and marijuana trim until 2 years after the date the Department of 
Administrative and Financial Services issues the first active cultivation facility license or 
a later date set in rule by the department.  It permits registered caregivers and registered 
dispensaries to transfer an unlimited number of marijuana plants and marijuana seeds and 
an unlimited amount of marijuana flower and marijuana trim to an adult use cultivation 
facility licensee until October 1, 2021 or a later date set in rule by the department.  If the 
department does not extend by rule the date by which a registered caregiver or registered 
dispensary may make unlimited authorized transfers to adult use cultivation facility 
licensees, a registered caregiver or registered dispensary that has already made an 
authorized transfer may make one more authorized transfer and a registered caregiver or 
registered dispensary that has not made an authorized transfer may make one authorized 
transfer to an adult use cultivation facility licensee.
2. It requires cultivation facility licensees to remit excise taxes on transfers of 
marijuana flower and marijuana trim received from a registered caregiver or registered 
dispensary.