ARTICLE 7. MEDICAL CANNABIS CONTROLS.

§16A-7-1.  Electronic tracking.

(a)  Requirement. — A medical cannabis organization must implement an electronic inventory tracking system which shall be directly accessible to the bureau through its electronic database that electronically tracks all medical cannabis on a daily basis. The system shall include tracking of all of the following:

(1)  For a grower or processor, a seed-to-sale tracking system that tracks the medical cannabis from seed to plant until the medical cannabis is sold to a dispensary.

(2)  For a dispensary, medical cannabis from purchase from the grower/processor to sale to a patient or caregiver and that includes information that verifies the validity of an identification card presented by the patient or caregiver.

(3)  For a medical cannabis organization, a daily log of each day’s beginning inventory, acquisitions, amounts purchased and sold, disbursements, disposals and ending inventory. The tracking system shall include prices paid and amounts collected from patients and caregivers.

(4)  For a medical cannabis organization, a system for recall of defective medical cannabis.

(5)  For a medical cannabis organization, a system to track the plant waste resulting from the growth of medical cannabis or other disposal, including the name and address of any disposal service.

(b)  Additional requirements. — In addition to the information under subsection (a) of this section, each medical cannabis organization shall track the following:

(1)  Security and surveillance.

(2)  Recordkeeping and record retention.

(3)  The acquisition, possession, growing and processing of medical cannabis.

(4)  Delivery and transportation, including amounts and method of delivery.

(5)  Dispensing, including amounts, pricing and amounts collected from patients and caregivers.

(c)  Access. — (1) Information maintained in electronic tracking systems under subsection (a) of this section shall be confidential and not subject to public disclosure under chapter twenty-nine-b of this code.

(2) Pursuant to conditions and procedures established by the bureau, law enforcement shall be provided access to the tracking system.

(d)  Reports. — Within one year of the issuance of the first permit to a medical cannabis organization, and every three months thereafter in a form and manner prescribed by the bureau, the following information shall be provided to the bureau, which shall compile the information and post it on the bureau’s publicly accessible Internet website:

(1)  The amount of medical cannabis sold by a grower and a processor during each three-month period.

(2)  The price of amounts of medical cannabis sold by growers and processors as determined by the bureau.

(3)  The amount of medical cannabis purchased by each dispensary in this state.

(4)  The cost of amounts of medical cannabis to each dispensary in amounts as determined by the bureau.

(5)  The total amount and dollar value of medical cannabis sold by each dispensary in the three-month period.

§16A-7-2.  Grower/processors.

(a)  Authorization. — Subject to subsection (b), a grower or processor may do all of the following in accordance with bureau rules:

(1)  Obtain seed from outside this state to initially grow medical cannabis.

(2)  Obtain seed and plant material from another grower/processor within this state to grow medical cannabis.

(b)  Limitations. —  A grower or processor may only grow, store, harvest or process medical cannabis in an indoor, enclosed, secure facility which:

(1)  Includes electronic locking systems, electronic surveillance and other features required by the bureau; and

(2)  Is located within this state.

§16A-7-3.  Storage and transportation.

The bureau shall develop rules relating to the storage and transportation of medical cannabis among grower/processors, testing laboratories and dispensaries which ensure adequate security to guard against in-transit losses. The tracking system developed by the bureau shall include all transportation and storage of medical cannabis. The rules shall provide for the following:

(1)  Requirements relating to shipping containers and packaging.

(2)  The manner in which trucks, vans, trailers or other carriers will be secured.

(3)  Security systems that include a numbered seal on the trailer.

(4)  Obtaining copies of drivers’ licenses and registrations and other information related to security and tracking.

(5)  Use of GPS systems.

(6)  Number of drivers or other security required to ensure against storage or in-transit losses.

(7)  Recordkeeping for delivery and receipt of medical cannabis products.

(8)  Requirements to utilize any electronic tracking system required by the bureau.

(9)  Transporting medical cannabis to a grower/processor, approved laboratory or dispensary.

§16A-7-4. Laboratory.

(a) A grower and processor shall contract with an independent laboratory to test the medical cannabis produced by the grower or processor. The bureau shall approve the laboratory and require that the laboratory report testing results in a manner as the bureau shall determine, including requiring a test at harvest and a test at final processing. The possession by a laboratory of medical cannabis shall be a lawful use.

(b) All medical cannabis produced pursuant to this chapter shall be subject to testing as directed by the bureau.

(c) The bureau shall ensure that there is sufficient testing capacity to meet patient demand.

(d) All laboratories providing testing pursuant to this section shall be certified to do so by the Office of Laboratory Services.

§16A-7-5.  Prices.

The bureau and the Department of Revenue shall monitor the price of medical cannabis sold by growers, processors and by dispensaries, including a per-dose price. If the bureau and the Department of Revenue determine that the prices are unreasonable or excessive, the bureau may implement a cap on the price of medical cannabis being sold for a period of six months. The cap may be amended during the six-month period. If the bureau and the Department of Revenue determine that the prices become unreasonable or excessive following the expiration of a six-month cap, additional caps may be imposed for periods not to exceed six months.

§16A-7-6.  County prohibition.

A county may pass an ordinance by vote of the residents of the county to prohibit the operation or location of a medical cannabis organization within that particular county.  A prohibition under this section shall remain in effect unless and until changed by a subsequent vote.