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

Emergency preamble. Whereas,  acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas,  implementing a system for the regulation and administration of the cultivation, distribution and retail sale of recreational marijuana, a controlled substance, is a complex function with significant financial costs; and

Whereas,  ensuring that possession and use of recreational marijuana is limited to persons who are 21 years of age and older is necessary to protect those who have not yet reached adulthood from the potential negative effects of irresponsible use of a controlled substance; 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,

Sec. 1. 7 MRSA §2442, sub-§9,  as enacted by IB 2015, c. 5, §1, is amended to read:

Sec. 2. 7 MRSA §2444, first ¶,  as enacted by IB 2015, c. 5, §1, is amended to read:

For the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, testing and sale of retail marijuana and retail marijuana products in this State, the state licensing authority is the Department of Agriculture, Conservation and Forestry Director of the Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services.

Sec. 3. 7 MRSA §2444, sub-§1,  as enacted by IB 2015, c. 5, §1, is amended to read:

Sec. 4. 7 MRSA §2444-A  is enacted to read:

§ 2444-A.  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 fund in the Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services. The fund is administered and used by the Director of the Bureau of Alcoholic Beverages and Lottery Operations for the purposes of adopting rules and establishing regulatory procedures as required by this chapter. To facilitate rulemaking and the establishment of a regulatory framework for the cultivation, distribution and sale of retail marijuana, the director may expend funds from the fund to enter into contracts with consultants and employ staff, as determined necessary by the director, conduct meetings with stakeholders and conduct other activities related to the operation of this chapter.

Sec. 5. 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 $1,600,000 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 February 15, 2017.

Sec. 6. 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 Regulatory Coordination Fund.

OTHER SPECIAL REVENUE FUNDS	2016-17	2017-18	2018-19
All Other	$1,600,000	$0	$0
OTHER SPECIAL REVENUE FUNDS TOTAL	$1,600,000	$0	$0

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

SUMMARY

This bill changes the state licensing authority under the Marijuana Legalization Act from the Department of Agriculture, Conservation and Forestry to the Director of the Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services. It also establishes the Retail Marijuana Regulatory Coordination Fund to be used by the director for rulemaking and other duties related to implementation of a regulatory scheme for the cultivating, distribution and sale of retail marijuana. This bill also transfers $1,600,000 from unappropriated General Fund surplus to the fund.