HB 6500 Summary

• Modifies the definition of "applicant" for medical marihuana facility licenses to specify which individuals must be disclosed based on entity type (effective January 1, 2019), including managerial employees and ownership stakeholders at 5% or higher for corporations and partnerships.

• Requires licensees to adopt third-party inventory control and tracking systems that interface with the statewide monitoring system, with detailed capabilities for tracking plants, products, waste, transfers, testing results, and batch recalls.

• Revises board membership requirements and conflict-of-interest rules, including removing the executive director position, limiting outside employment, and establishing 2-4 year post-employment restrictions on representing licensees or acquiring interests in marihuana facilities.

• Changes license transfer approval threshold from 1% to 5% ownership interest and adds Section 407a making it illegal to operate a marihuana facility without a valid license (effective June 1, 2019), with penalties ranging from $10,000-$25,000 fines and up to 1 year imprisonment.

• Repeals Section 404 of the original act and removes residency requirements for individual applicants that were set to expire June 30, 2018.