MI SB1262

Expands the definition of "applicant" to include managerial employees and persons holding 10% or more indirect ownership interests for applications submitted after January 1, 2019, and extends background check requirements to spouses and business partners depending on entity type.

Requires licensees to adopt third-party inventory control and tracking systems capable of interfacing with the statewide monitoring system to track plants, products, waste, transfers, sales, and adverse patient responses, with exceptions if the statewide system itself provides these capabilities.

Establishes criminal penalties for operating a marihuana facility without a valid license, suspended license, or fraudulently obtained license: misdemeanor fines of $10,000-$25,000 for first violation, up to 1 year imprisonment for second violation, and felony charges with up to 4 years imprisonment if violation causes death or serious injury, effective June 1, 2019.

Modifies the Medical Marihuana Licensing Board composition and adds conflict-of-interest provisions requiring annual disclosure forms and prohibiting board members and employees from financial interests in licensees for 4 years after employment ends.

Increases civil fines for licensee violations to up to $5,000 per individual and $10,000 or daily gross receipts (whichever is greater) per licensee, and repeals the previous section 404 concerning license transfers, effective January 1, 2019.