MISSISSIPPI LEGISLATURE

2023 Regular Session

To: Drug Policy

By: Representative Harness

House Bill 338

AN ACT TO BE KNOWN AS THE MISSISSIPPI RETAIL MARIJUANA ACT; TO AUTHORIZE THE PERSONAL USE OF MARIJUANA BY PERSONS 21 YEARS OF AGE AND OLDER AND PROVIDE FOR THE REGULATION OF THE PERSONAL USE OF MARIJUANA BY THE STATE DEPARTMENT OF HEALTH; TO PROVIDE FOR THE LAWFUL OPERATION OF RETAIL MARIJUANA-RELATED FACILITIES; TO DIRECT THE DEPARTMENT TO ADOPT REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS ACT; TO PROVIDE FOR THE MISSISSIPPI MARIJUANA CODE, WHICH PROVIDES FOR THE STATUTORY REGULATION OF THE PERSONAL USE OF MARIJUANA; TO PROVIDE DEFINITIONS FOR THE CODE; TO PROVIDE FOR THE APPLICABILITY OF THE CODE TO RETAIL MARIJUANA; TO PROVIDE FOR THE STATE LICENSING AUTHORITY FOR THE CODE, WHICH SHALL BE THE EXECUTIVE DIRECTOR OF THE STATE DEPARTMENT OF HEALTH; TO PROVIDE FOR A SEED-TO-SALE TRACKING SYSTEM THAT TRACKS RETAIL MARIJUANA FROM EITHER THE SEED OR IMMATURE PLANT STAGE UNTIL THE RETAIL MARIJUANA PRODUCT IS SOLD TO A CUSTOMER AT A RETAIL MARIJUANA STORE; TO PROVIDE FOR LICENSING PROCEDURES BY THE STATE LICENSING AUTHORITY AND BY LOCAL LICENSING AUTHORITIES; TO PROVIDE WHICH PERSONS ARE PROHIBITED TO BE LICENSEES; TO PRESCRIBE REQUIREMENTS FOR RETAIL MARIJUANA BUSINESSES AND OWNERS; TO PROVIDE FOR DISCLOSURE OF FINANCIAL INTERESTS BY RETAIL MARIJUANA BUSINESS OWNERS; TO PROVIDE THE PROCEDURE FOR THE TRANSFER OF LICENSES; TO PROVIDE THE PROCEDURES FOR LICENSING AND LICENSE RENEWALS; TO PROVIDE THE DIFFERENT CLASSES OF RETAIL MARIJUANA BUSINESS LICENSES; TO PROVIDE FOR RETAIL MARIJUANA STORE LICENSES; TO PROVIDE FOR RETAIL MARIJUANA CULTIVATION FACILITY LICENSES; TO PROVIDE FOR RETAIL MARIJUANA PRODUCTS MANUFACTURER LICENSES; TO PROVIDE FOR RETAIL MARIJUANA TESTING FACILITY LICENSES; TO PROVIDE FOR RETAIL MARIJUANA TRANSPORTER LICENSES; TO PROVIDE FOR RETAIL MARIJUANA BUSINESS OPERATOR LICENSES; TO PROVIDE FOR RETAIL MARIJUANA ACCELERATOR CULTIVATOR LICENSES; TO PROVIDE FOR RETAIL MARIJUANA ACCELERATOR MANUFACTURER LICENSES; TO PROVIDE FOR MARIJUANA HOSPITALITY BUSINESS LICENSES; TO PROVIDE FOR RETAIL MARIJUANA ACCELERATOR STORE LICENSES; TO PRESCRIBE UNLAWFUL ACTS UNDER THE CODE; TO PROHIBIT THE OPEN AND PUBLIC CONSUMPTION OF MARIJUANA; TO CREATE THE MARIJUANA CASH FUND AS A SPECIAL FUND IN THE STATE TREASURY AND REQUIRE THE STATE LICENSING AUTHORITY TO DEPOSIT ALL MONEY COLLECTED UNDER THIS ACT INTO THE FUND; TO PROVIDE THAT THE STATE LICENSING AUTHORITY SHALL ESTABLISH FEES FOR PROCESSING THE APPLICATIONS, LICENSES, NOTICES OR REPORTS REQUIRED TO BE SUBMITTED TO THE STATE LICENSING AUTHORITY; TO PROVIDE THAT THE STATE LICENSING AUTHORITY MAY FINE A LICENSEE OR SUSPEND OR REVOKE A LICENSE FOR VIOLATIONS OF THIS ACT; TO PROVIDE FOR THE DISPOSITION OF UNAUTHORIZED MARIJUANA OR MARIJUANA PRODUCTS AND RELATED MATERIALS; TO PROVIDE FOR THE INSPECTION OF BOOKS AND RECORDS OF LICENSEES; TO PROVIDE FOR A RESPONSIBLE RETAIL MARIJUANA VENDOR SERVER AND SELLER TRAINING PROGRAM; TO AMEND SECTIONS 27-104-203, 33-13-520, 37-11-29, 41-29-125, 41-29-127, 41-29-136, 41-29-137, 41-29-139, 41-29-141, 41-29-143, 59-23-7 AND 63-11-30, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Title - Personal use and regulation of marijuana.

     (1)  Title.  This act shall be known and may be cited as the Mississippi Retail Marijuana Act.

     (2)  Purpose and findings.  (a)  In the interest of the efficient use of law enforcement resources, enhancing revenue for public purposes, and individual freedom, the people of the State of Mississippi find and declare that the use of marijuana should be legal for persons twenty-one (21) years of age or older and taxed in a manner similar to alcohol.

          (b)  In the interest of the health and public safety of our citizenry, the people of the State of Mississippi further find and declare that marijuana should be regulated in a manner similar to alcohol so that:

               (i)  Individuals will have to show proof of age before purchasing marijuana;

               (ii)  Selling, distributing, or transferring marijuana to minors and other individuals under the age of twenty-one (21) shall remain illegal;

               (iii)  Driving under the influence of marijuana shall remain illegal;

               (iv)  Legitimate, taxpaying business people, and not criminal actors, will conduct sales of marijuana; and

               (v)  Marijuana sold in this state will be labeled and subject to additional regulations to ensure that consumers are informed and protected.

          (c)  In the interest of enacting rational policies for the treatment of all variations of the cannabis plant, the people of Mississippi further find and declare that industrial hemp should be regulated separately from strains of cannabis with higher delta-9 tetrahydrocannabinol (THC) concentrations.

          (d)  The people of the State of Mississippi further find and declare that it is necessary to ensure consistency and fairness in the application of this section throughout the state and that, therefore, the matters addressed by this section are, except as specified herein, matters of statewide concern.

     (3)  Definitions.  As used in this section, unless the context otherwise requires:

          (a)  "Mississippi Marijuana Code" means Chapter 138, Title 41, Mississippi Code of 1972.

          (b) "Consumer" means a person twenty-one (21) years of age or older who purchases marijuana or marijuana products for personal use by persons twenty-one (21) years of age or older, but not for resale to others.

          (c)  "Department" means the State Department of Health or its successor agency.

          (d) "Hemp" has the same meaning as it is defined in federal law or as the term is defined in Section 69-25-203.

          (e)  "Locality" means a county, municipality, or a municipality and county.

          (f)  "Marijuana" means all parts of the plant of the genus cannabis whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate. "Marijuana" does not include hemp as defined in and regulated by  Sections 69-25-201 through 69-25-221, nor does it include fiber produced from the stalks, oil, or cake made from the seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other product.

          (g)  "Marijuana accessories" means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body.

          (h)  "Marijuana cultivation facility" means an entity licensed to cultivate, prepare, and package marijuana and sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers.

          (i)  "Marijuana establishment" means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store.

          (j)  "Marijuana product manufacturing facility" means an entity licensed to purchase marijuana; manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers.

          (k)  "Marijuana products" means concentrated marijuana products and marijuana products that are comprised of marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.

          (l)  "Marijuana testing facility" means an entity licensed to analyze and certify the safety and potency of marijuana.

          (m)  "Retail marijuana store" means an entity licensed to purchase marijuana from marijuana cultivation facilities and marijuana and marijuana products from marijuana product manufacturing facilities and to sell marijuana and marijuana products to consumers.

          (n)  "Unreasonably impracticable" means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent businessperson.

     (4)  Personal use of marijuana.  The following acts are not unlawful and shall not be an offense under Mississippi law or the law of any locality within Mississippi or be a basis for seizure or forfeiture of assets under Mississippi law for persons twenty-one (21) years of age or older:

          (a)  Possessing, using, displaying, purchasing, or transporting marijuana accessories or one (1) ounce or less of marijuana.

          (b)  Possessing, growing, processing, or transporting no more than six (6) marijuana plants, with three (3) or fewer being mature, flowering plants, and possession of the marijuana produced by the plants on the premises where the plants were grown, provided that the growing takes place in an enclosed, locked space, is not conducted openly or publicly, and is not made available for sale.

          (c)  Transfer of one (1) ounce or less of marijuana without remuneration to a person who is twenty-one (21) years of age or older.

          (d)  Consumption of marijuana, provided that nothing in this section shall permit consumption that is conducted openly and publicly or in a manner that endangers others.

          (e)  Assisting another person who is twenty-one (21) years of age or older in any of the acts described in paragraphs (a) through (d) of this subsection.

     (5)  Lawful operation of marijuana-related facilities.  The following acts are not unlawful and shall not be an offense under Mississippi law or be a basis for seizure or forfeiture of assets under Mississippi law for persons twenty-one (21) years of age or older:

          (a)  Manufacture, possession, or purchase of marijuana accessories or the sale of marijuana accessories to a person who is twenty-one (21) years of age or older.

          (b)  Possessing, displaying, or transporting marijuana or marijuana products; purchase of marijuana from a marijuana cultivation facility; purchase of marijuana or marijuana products from a marijuana product manufacturing facility; or sale of marijuana or marijuana products to consumers, if the person conducting the activities described in this paragraph has obtained a current, valid license to operate a retail marijuana store or is acting in his or her capacity as an owner, employee or agent of a licensed retail marijuana store.

          (c)  Cultivating, harvesting, processing, packaging, transporting, displaying, or possessing marijuana; delivery or transfer of marijuana to a marijuana testing facility; selling marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail marijuana store; or the purchase of marijuana from a marijuana cultivation facility, if the person conducting the activities described in this paragraph has obtained a current, valid license to operate a marijuana cultivation facility or is acting in his or her capacity as an owner, employee, or agent of a licensed marijuana cultivation facility.

          (d)  Packaging, processing, transporting, manufacturing, displaying, or possessing marijuana or marijuana products; delivery or transfer of marijuana or marijuana products to a marijuana testing facility; selling marijuana or marijuana products to a retail marijuana store or a marijuana product manufacturing facility; the purchase of marijuana from a marijuana cultivation facility; or the purchase of marijuana or marijuana products from a marijuana product manufacturing facility, if the person conducting the activities described in this paragraph has obtained a current, valid license to operate a marijuana product manufacturing facility or is acting in his or her capacity as an owner, employee, or agent of a licensed marijuana product manufacturing facility.

          (e)  Possessing, cultivating, processing, repackaging, storing, transporting, displaying, transferring or delivering marijuana or marijuana products if the person has obtained a current, valid license to operate a marijuana testing facility or is acting in his or her capacity as an owner, employee, or agent of a licensed marijuana testing facility.

          (f)  Leasing or otherwise allowing the use of property owned, occupied or controlled by any person, corporation or other entity for any of the activities conducted lawfully in accordance with paragraphs (a) through (e) of this subsection.

     (6)  Regulation of marijuana.  (a)  Not later than July 1, 2024, the department shall adopt regulations necessary for implementation of this section.  Such regulations shall not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable.  Such regulations shall include:

               (i)  Procedures for the issuance, renewal, suspension, and revocation of a license to operate a marijuana establishment;

               (ii)  A schedule of application, licensing and renewal fees, provided that application fees shall not exceed Five Thousand Dollars ($5,000.00), with this upper limit adjusted annually for inflation, unless the department determines a greater fee is necessary to carry out its responsibilities under this section;

               (iii)  Qualifications for licensure that are directly and demonstrably related to the operation of a marijuana establishment;

               (iv)  Security requirements for marijuana establishments;

               (v)  Requirements to prevent the sale or diversion of marijuana and marijuana products to persons under twenty-one (21) years of age;

               (vi)  Labeling requirements for marijuana and marijuana products sold or distributed by a marijuana establishment;

               (vii)  Health and safety regulations and standards for the manufacture of marijuana products and the cultivation of marijuana;

               (viii)  Restrictions on the advertising and display of marijuana and marijuana products; and

               (ix)  Civil penalties for the failure to comply with regulations made pursuant to this section.

          (b)  In order to ensure that individual privacy is protected, notwithstanding paragraph (a) of this subsection, the department shall not require a consumer to provide a retail marijuana store with personal information other than government-issued identification to determine the consumer's age, and a retail marijuana store shall not be required to acquire and record personal information about consumers other than information typically acquired in a financial transaction conducted at a retail liquor store.

          (c)  Not later than October 1, 2024, each locality shall enact an ordinance or regulation specifying the entity within the locality that is responsible for processing applications submitted for a license to operate a marijuana establishment within the boundaries of the locality and for the issuance of such licenses if the issuance by the locality become necessary because of a failure by the department to adopt regulations pursuant to paragraph (a) or because of a failure by the department to process and issue licenses as required by paragraph (e).

          (d)  A locality may enact ordinances or regulations, not in conflict with this section or with regulations or legislation enacted pursuant to this section, governing the time, place, manner and number of marijuana establishment operations; establishing procedures for the issuance, suspension, and revocation of a license issued by the locality in accordance with paragraph (f) or (g); establishing a schedule of annual operating, licensing, and application fees for marijuana establishments, provided that the application fee shall only be due if an application is submitted to a locality in accordance with paragraph (g) and a licensing fee shall only be due if a license is issued by a locality in accordance with paragraph (f) or (g); and establishing civil penalties for violation of an ordinance or regulation governing the time, place, and manner of a marijuana establishment that may operate in such locality.  A locality may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance.

          (e)  Each application for an annual license to operate a marijuana establishment shall be submitted to the department.  The department shall:

               (i)  Begin accepting and processing applications on October 1, 2024;

               (ii)  Immediately forward a copy of each application and half of the license application fee to the locality in which the applicant desires to operate the marijuana establishment;

               (iii)  Issue an annual license to the applicant between forty-five (45) and ninety (90) days after receipt of an application unless the department finds the applicant is not in compliance with regulations enacted pursuant to paragraph (a) or the department is notified by the relevant locality that the applicant is not in compliance with ordinances and regulations made pursuant to paragraph (d) and in effect at the time of application, provided that where a locality has enacted a numerical limit on the number of marijuana establishments and a greater number of applicants seek licenses, the department shall solicit and consider input from the locality as to the locality's preference or preferences for licensure; and

               (iv)  Upon denial of an application, notify the applicant in writing of the specific reason for its denial.

          (f)  If the department does not issue a license to an applicant within ninety (90) days of receipt of the application filed in accordance with paragraph (e) and does not notify the applicant of the specific reason for its denial, in writing and within such time period, or if the department has adopted regulations pursuant to paragraph (a) and has accepted applications pursuant to paragraph (e) but has not issued any licenses by January 1, 2025, the applicant may resubmit its application directly to the locality, pursuant to paragraph (c), and the locality may issue an annual license to the applicant.  A locality issuing a license to an applicant shall do so within ninety (90) days of receipt of the resubmitted application unless the locality finds and notifies the applicant that the applicant is not in compliance with ordinances and regulations made pursuant to paragraph (d) in effect at the time the application is resubmitted and the locality shall notify the department if an annual license has been issued to the applicant.  If an application is submitted to a locality under this paragraph, the department shall forward to the locality the application fee paid by the applicant to the department upon request by the locality.  A license issued by a locality in accordance with this paragraph shall have the same force and effect as a license issued by the department in accordance with paragraph (e) and the holder of such license shall not be subject to regulation or enforcement by the department during the term of that license.  A subsequent or renewed license may be issued under this paragraph on an annual basis only upon resubmission to the locality of a new application submitted to the department pursuant to paragraph (e).

          (g)  If the department does not adopt regulations required by paragraph (a), an applicant may submit an application directly to a locality after October 1, 2024, and the locality may issue an annual license to the applicant.  A locality issuing a license to an applicant shall do so within ninety (90) days of receipt of the application unless it finds and notifies the applicant that the applicant is not in compliance with ordinances and regulations made pursuant to paragraph (d) in effect at the time of application and shall notify the department if an annual license has been issued to the applicant.  A license issued by a locality in accordance with this paragraph shall have the same force and effect as a license issued by the department in accordance with paragraph (e) and the holder of such license shall not be subject to regulation or enforcement by the department during the term of that license.  A subsequent or renewed license may be issued under this paragraph on an annual basis if the department has not adopted regulations required by paragraph (a) at least ninety (90) days prior to the date upon which such subsequent or renewed license would be effective or if the department has adopted regulations pursuant to paragraph (a) but has not, at least ninety (90) days after the adoption of such regulations, issued licenses pursuant to paragraph (e).

     (7)  Employers, driving, minors and control of property.  (a)  Nothing in this section is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale or growing of marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees.

          (b)  Nothing in this section is intended to allow driving under the influence of marijuana or driving while impaired by marijuana or to supersede any laws related to driving under the influence of marijuana or driving while impaired by marijuana.

          (c)  Nothing in this section is intended to permit the transfer of marijuana, with or without remuneration, to a person under the age of twenty-one (21) or to allow a person under the age of twenty-one (21) to purchase, possess, use, transport, grow, or consume marijuana.

          (d)  Nothing in this section shall prohibit a person, employer, school, hospital, detention facility, corporation or any other entity who occupies, owns or controls a property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation, or growing of marijuana on or in that property.

     SECTION 2.  The following sections shall be codified as a new Chapter 138 in Title 41, Mississippi Code of 1972:

                           ARTICLE 1

                   MISSISSIPPI MARIJUANA CODE

     101.  Short title.  This chapter shall be known and may be cited as the "Mississippi Marijuana Code".

     102.  Legislative declaration.  (1)  The Legislature declares that this chapter is deemed an exercise of the police powers of the state for the protection of the economic and social welfare and the health, peace, and morals of the people of this state.

     (2)  The Legislature further declares that it is unlawful under state law to cultivate, manufacture, distribute, or sell retail marijuana and retail marijuana products, except in compliance with the terms, conditions, limitations, and restrictions in Section 1 of this act and this chapter.

     103.  Definitions.  As used in this chapter, unless the context otherwise requires:

          (a)  "Accelerator cultivator" means a social equity licensee qualified to participate in the accelerator program established pursuant to this chapter and authorized pursuant to rule, to exercise the privileges of a retail marijuana cultivation facility on the premises of an accelerator-endorsed retail marijuana cultivation facility licensee.

          (b)  "Accelerator-endorsed licensee" means a retail marijuana cultivation facility licensee, retail marijuana products manufacturer licensee, or retail marijuana store who has, pursuant to rule, been endorsed to host and offer technical and capital support to a social equity licensee pursuant to the requirements of the accelerator program established pursuant to this chapter.

          (c)  "Accelerator manufacturer" means a social equity licensee qualified to participate in the accelerator program established pursuant to this chapter and authorized pursuant to rule, to exercise the privileges of a retail marijuana products manufacturer on the premises of an accelerator-endorsed retail marijuana products manufacturing licensee.

          (d)  "Accelerator store" means a social equity licensee qualified to participate in the accelerator program established pursuant to this chapter and authorized pursuant to rule, to exercise the privileges of a retail marijuana store on the premises of an accelerator-endorsed retail marijuana store licensee.

          (e)  "Acquire", when used in connection with the acquisition of an owner's interest of a retail marijuana business, means obtaining ownership, control, power to vote, or sole power of disposition of the owner's interest, directly or indirectly or through one or more transactions or subsidiaries, through purchase, assignment, transfer, exchange, succession, or other means.

          (f)  "Acting in concert" means knowing participation in a joint activity or interdependent conscious parallel action toward a common goal, whether or not pursuant to an express agreement.

          (g)  "Adverse weather event" means:

               (a)  Damaging weather, which involves a drought, a freeze, hail, excessive moisture, excessive wind, or a tornado;

               (b)  An adverse natural occurrence, which involves an earthquake, wildfire, or flood; or

               (c)  Any additional adverse weather event or adverse natural occurrence as the state licensing authority may define by rule.

          (h)  "Advertising" means the act of providing consideration for the publication, dissemination, solicitation, or circulation of visual, oral, or written communication to directly induce any person to patronize a particular retail marijuana business or purchase particular regulated marijuana.  "Advertising" does not include packaging and labeling, consumer education materials, or branding.

          (i)  "Affiliate" of, or person "affiliated with", has the same meaning as defined in 17 CFR 230.405.

          (j)  "Beneficial owner of", "beneficial ownership of", or "beneficially owns an" owner's interest is determined in accordance with 17 CFR 240.13d-3.

          (k)  "Branding" means promotion of a business's brand through publicizing the retail marijuana business's name, logo, or distinct design features of the brand.

          (l)  "Consumer education materials" means any informational materials that seek to educate consumers about regulated marijuana generally, including, but not limited to, education regarding the safe consumption of marijuana, regulated marijuana concentrate, or regulated marijuana products, provided they are not distributed or made available to individuals under twenty-one (21) years of age.

          (m)  "Control", "controls", "controlled", "controlling", "controlled by", and "under common control with", means the possession, direct or indirect, of the power to direct or cause the direction of the management or policies of a person, whether through the ownership of voting owner's interests, by contract, or otherwise.

          (n)  "Escorted" means appropriately checked into a limited access area and accompanied by a person licensed by the state licensing authority; except that trade craftspeople not normally engaged in the business of cultivating, processing, selling, or testing regulated marijuana need not be accompanied on a full-time basis, but only reasonably monitored.

          (o)  "Executive director" means the executive director of the State Department of Health.

          (p)  "Fibrous waste" means any roots, stalks, and stems from a retail marijuana plant.

          (q)  "Good cause", for purposes of refusing or denying a license renewal, reinstatement, or initial license issuance, means:

               (i)  The licensee or applicant has violated, does not meet, or has failed to comply with any of the terms, conditions, or provisions of this chapter; any rules promulgated pursuant to this chapter; or any supplemental local law, rules, or regulations;

               (ii)  The licensee or applicant has failed to comply with any special terms or conditions that were placed on its license pursuant to an order of the state or local licensing authority;

               (iii)  The licensed premises have been operated in a manner that adversely affects the public health or welfare or the safety of the immediate neighborhood in which the establishment is located.

          (r)  "Immature plant" means a nonflowering marijuana plant that is no taller than eight (8) inches and no wider than eight (8) inches; is produced from a cutting, clipping, or seedling; and is in a cultivating container.

          (s)  "Industrial fiber products" means intermediate or finished products made from fibrous waste that are not intended for human or animal consumption and are not usable or recognizable as retail marijuana.  Industrial fiber products include, but are not limited to, cordage, paper, fuel, textiles, bedding, insulation, construction materials, compost materials, and industrial materials.

          (t)  "Industrial hemp" means a plant of the genus cannabis and any part of the plant, whether growing or not, containing a delta-9 tetrahydrocannabinol concentration of no more than three-tenths of one percent (0.3%) on a dry weight basis.

          (u)  "Industrial hemp product" means a finished product containing industrial hemp that:

               (i)  Is a cosmetic, food, food additive, or herb;

               (ii)  Is for human use or consumption;

               (iii)  Contains any part of the hemp plant, including naturally occurring cannabinoids, compounds, concentrates, extracts, isolates, resins, or derivatives; and

               (iv)  Contains a delta-9 tetrahydrocannabinol concentration of no more than three-tenths of one percent (0.3%) on a dry weight basis.

          (v)  "License" means to grant a license, permit, or registration pursuant to this chapter.

          (w)  "Licensed premises" means the premises specified in an application for a license under this chapter that are owned or in possession of the licensee and within which the licensee is authorized to cultivate, manufacture, distribute, sell, or test regulated marijuana and regulated marijuana products in accordance with this chapter.

          (x)  "Licensee" means a person licensed or registered pursuant to this chapter.

          (y)  "Limited access areas", subject to the provisions of Section 1001, means a building, room, or other contiguous area upon the licensed premises where regulated marijuana and regulated marijuana products are cultivated, manufactured, stored, weighed, packaged, sold, possessed for sale, or tested, under control of the licensee, with access limited to only those persons licensed by the state licensing authority and those visitors escorted by a person licensed by the state licensing authority.  All areas of ingress or egress to limited access areas must be clearly identified as such by a sign as designated by the state licensing authority.

          (z)  "Local jurisdiction" means a locality as defined in Section 1(3)(e) of this act.

          (aa)  "Local licensing authority" means an authority designated by municipal or county charter, ordinance, or resolution, or the governing body of a municipality or county.

          (bb)  "Location" means a particular parcel of land that may be identified by an address or other descriptive means.

          (cc)  "Marijuana accessories" has the same meaning as defined in Section 1(3)(g) of this act.

          (dd)  "Marijuana-based workforce development or training program" means a program designed to train individuals to work in the regulated marijuana industry operated by an entity licensed under this chapter or by a school that is authorized by state law to do such training.

          (ee)  "Marijuana consumer waste" means any component left after the consumption of a regulated marijuana product, including, but not limited to, containers, packages, cartridges, pods, cups, batteries, all-in-one disposable devices, and any other waste component left after the regulated marijuana is consumed as defined by rules promulgated by the state licensing authority.

          (ff)  "Marijuana hospitality business" means a facility, which may be mobile, licensed to permit the consumption of marijuana pursuant to chapter; rules promulgated pursuant to this chapter; and the provisions of an ordinance or resolution of the local jurisdiction in which the licensee operates.

          (gg)  "Mobile distribution center" means any vehicle other than a common passenger light-duty vehicle with a short wheel base used to carry a quantity of marijuana greater than one (1) ounce.

          (hh)  "Opaque" means that the packaging does not allow the product to be seen without opening the packaging material.

          (ii)  "Operating fees", as referred to in Section 1(6)(d) of this act, means fees that may be charged by a local jurisdiction for costs, including, but not limited to, inspection, administration, and enforcement of retail marijuana businesses authorized pursuant to this chapter.

          (jj)  "Passive beneficial owner" means any person acquiring any owner's interest in a retail marijuana business that is not otherwise a controlling beneficial owner or in control.

          (kk)  "Permitted economic interest" means any unsecured convertible debt instrument, option agreement, warrant, or any other right to obtain an ownership interest when the holder of such interest is a natural person who is a lawful United States resident and whose right to convert into an ownership interest is contingent on the holder qualifying and obtaining a license as an owner under this chapter, or such other agreements as may be permitted by rule of the state licensing authority.

          (ll)  "Premises" means a distinctly identified, as required by the state licensing authority, and definite location, which may include a building, a part of a building, a room, or any other definite contiguous area.

          (mm)  "Publicly traded corporation" means any person other than an individual that is organized under the laws of and for which its principal place of business is located in one of the states or territories of the United States or District of Columbia or another country that authorizes the sale of marijuana and that:

               (i)  Has a class of securities registered pursuant to 15 USC Section 77a et seq., that:

                    1.  Constitutes "covered securities" pursuant to 15 USC Section 77r(b)(1)(A); or

                    2.  Is qualified and quoted on the OTCQX or OTCQB tier of the OTC markets if:

                         a.  The person is then required to file reports and is filing reports on a current basis with the federal Securities and Exchange Commission pursuant to 15 USC Section 78a et seq., as if the securities constituted "covered securities" as described in item 1 of this subparagraph (i); and

                         b.  The person has established and is in compliance with corporate governance measures pursuant to corporate governance obligations imposed on securities qualified and quoted on the OTCQX tier of the OTC markets;

               (ii)  Is an entity that has a class of securities listed on the Canadian securities exchange, Toronto stock exchange, TSX venture exchange, or other equity securities exchange recognized by the state licensing authority, if:

                    1.  The entity constitutes a "foreign private issuer", as defined in 17 CFR 230.405, whose securities are exempt from registration pursuant to 15 USC Section 78a et seq., pursuant to 17 CFR 240.12g3-2; and

                    2.  The entity has been, for the preceding three hundred sixty-five (365) days or since the formation of the entity, in compliance with all governance and reporting obligations imposed by the relevant exchange on such entity; or

               (iii)  Is reasonably identified as a publicly traded corporation by rule.

          (nn)  "Qualified institutional investor" means:

               (i)  A bank, as defined in 15 USC Section 78c(a)(6), if the bank is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder;

               (ii)  A bank holding company, as defined in 12 USC Section 1841(a)(1), if the bank holding company is registered and current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder;

               (iii)  An insurance company, as defined in 15 USC Section 80a-2(a)(17), if the insurance company is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder;

               (iv)  An investment company registered and subject to 15 USC Section 80a-1 et seq., if the investment company is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder;

               (v)  An employee benefit plan or pension fund subject to 29 USC Section 1001 et seq., excluding an employee benefit plan or pension fund sponsored by a licensee or an intermediary holding company licensee that directly or indirectly owns ten percent (10%) or more of a licensee;

               (vi)  A state or federal government pension plan;

               (vii)  A group comprised entirely of persons specified in subparagraph (i) through (vi) of this paragraph; or

               (viii)  Any other entity identified by rule by the state licensing authority.

          (oo)  "Qualified private fund" means an issuer that would be an investment company, as defined in, but for the exclusions provided under, 15 USC Section 80a-3, and that:

               (i)  Is advised or managed by an investment adviser, as defined and registered pursuant to 15 USC Section 80b-1 et seq., and for which the registered investment adviser is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; and

               (ii)  Satisfies one or more of the following:

                    1.  Is organized under the law of a state or the United States;

                    2.  Is organized, operated, or sponsored by a "U.S. person", as defined under 17 CFR 230.902(k), as amended; or

                    3.  Sells securities to a "U.S. person", as defined under 17 CFR 230.902(k), as amended.

          (pp)  "Reasonable cause" means just or legitimate grounds based in law and in fact to believe that the particular requested action furthers the purposes of this chapter or protects public safety.

          (qq)  "Regulated marijuana" means retail marijuana.  If the context requires, regulated marijuana includes retail marijuana concentrate and retail marijuana products.

          (rr)  "Regulated marijuana products" means retail marijuana products.

          (ss)  "Resealable" means that the package continues to function within effectiveness specifications, which shall be established by the state licensing authority similar to the federal "Poison Prevention Packaging Act of 1970", 15 USC Section 1471 et seq., for the number of openings and closings customary for its size and contents, which shall be determined by the state licensing authority.

          (tt)  "Retail marijuana" means "marijuana", as defined in Section 1(3)(f) of this act, that is cultivated, manufactured, distributed, or sold by a licensed retail marijuana business.  If the context requires, retail marijuana includes retail marijuana concentrate and retail marijuana products.

          (uu)  "Retail marijuana business" means a retail marijuana store, a retail marijuana cultivation facility, a retail marijuana products manufacturer, a marijuana hospitality business, a retail marijuana hospitality and sales business, a retail marijuana testing facility, a retail marijuana business operator, or a retail marijuana transporter licensed pursuant to this chapter.

          (vv)  "Retail marijuana business operator" means an entity or person that is not an owner and that is licensed to provide professional operational services to a retail marijuana business for direct remuneration from the retail marijuana business.

          (ww)  "Retail marijuana concentrate" means a subset of retail marijuana that is separated from the retail marijuana plant and results in matter with a higher concentration of cannabinoids than naturally occur in the plant.  Retail marijuana concentrate contains cannabinoids and may contain terpenes and other chemicals that are naturally occurring in retail marijuana plants that have been separated from retail marijuana.  Retail marijuana concentrate may also include residual amounts of the types of solvents, as permitted by the marijuana rules.  The state licensing authority may further define by rule subcategories of retail marijuana concentrate and authorize limited ingredients based on the method of production of retail marijuana concentrate.  Unless the context otherwise requires, retail marijuana concentrate is included when this chapter refers to retail marijuana product.

          (xx)  "Retail marijuana cultivation facility" has the same meaning as "marijuana cultivation facility" as defined in Section 1(3)(h) of this act.

          (yy)  "Retail marijuana hospitality and sales business" means a facility, which cannot be mobile, licensed to permit the consumption of only the retail marijuana or retail marijuana products that it has sold pursuant to the provisions of an ordinance of the local jurisdiction in which the licensee operates.

          (zz)  "Retail marijuana products" means "marijuana products" as defined in Section 1(3)(k) of this act that are produced at a retail marijuana products manufacturer.

          (aaa)  "Retail marijuana products manufacturer" has the same meaning as "marijuana product manufacturing facility" as defined in Section 1(3)(j) of this act.

          (bbb)  "Retail marijuana store" has the same meaning as defined in Section 1(3)(m) of this act.

          (ccc)  "Retail marijuana testing facility" means "marijuana testing facility" as defined in Section 1(3)(l) of this act that is licensed pursuant to this chapter.

          (ddd)  "Retail marijuana transporter" means an entity or person licensed to transport retail marijuana and retail marijuana products from one (1) retail marijuana business to another retail marijuana business and to temporarily store the transported retail marijuana and retail marijuana products at its licensed premises, but is not authorized to sell retail marijuana or retail marijuana products under any circumstances.

          (eee)  "Sale" or "sell" includes to exchange, barter, or traffic in; to solicit or receive and order except through a licensee licensed under this chapter; to deliver for value in any way other than gratuitously; to peddle or possess with intent to sell; or to traffic in for any consideration promised or obtained directly or indirectly.

          (fff)  "School" means a public or private preschool or a public or private elementary, middle, junior high, or high school or institution of higher education.

          (ggg)  "Security" has the same meaning as defined in 15 USC Section 77b(a)(1) et seq.

          (hhh)  "Social equity licensee" means a natural person who meets the criteria established pursuant to Section 308(3).  A person qualified as a social equity licensee may participate in the accelerator program established pursuant to this chapter or may hold a regulated marijuana business license or permit issued pursuant to this chapter.

          (iii)  "State licensing authority" means the authority created for the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, sale, and testing of regulated marijuana in this state pursuant to Section 201.

     104.  Applicability - retail marijuana.  (1)  (a)  A person applying for licensure pursuant to this chapter must complete forms as provided by the state licensing authority and must pay the application fee and the licensing fee, which must be credited to the Marijuana Cash Fund established pursuant to Section 801.  The state licensing authority shall forward, within seven (7) days, one-half (1/2) of the retail marijuana business license application fee to the local jurisdiction unless the application is for an accelerator cultivator, accelerator manufacturer, or accelerator store license or unless the local jurisdiction has prohibited the operation of retail marijuana businesses pursuant to Section 1(6)(d) of this act.  If the license is denied, the state licensing authority shall refund the licensing fee to the applicant.

          (b)  The state licensing authority shall act upon a retail marijuana business license application made pursuant to paragraph (a) of this subsection no sooner than forty-five (45) days and no later than ninety (90) days after the date of the retail marijuana business license application.  The state licensing authority shall process retail marijuana business license applications in the order in which complete applications are received by the state licensing authority.

     (2)  As provided in Section 1(6)(d) of this act, any local jurisdiction may enact ordinances or regulations governing the time, place, manner, and number of retail marijuana businesses, which may include a local licensing requirement, or may prohibit the operation of retail marijuana businesses through the enactment of an ordinance.

     (3)  This chapter sets forth the exclusive means by which cultivation, manufacture, sale, distribution, dispensing, and testing of regulated marijuana and regulated marijuana products may occur in the State of Mississippi.

     (4)  (a)  Nothing in this chapter is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or cultivating of regulated marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees.

          (b)  Nothing in this chapter prohibits a person, employer, school, hospital, detention facility, corporation, or any other entity that occupies, owns, or controls a property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation, or cultivating of regulated marijuana on or in that property.

          (c)  Notwithstanding any other provision of this subsection (4), holding or exercising the privileges of any license issued pursuant to this chapter shall not constitute an unsuitable or unlawful act or practice within the meaning of the statutes and rules governing the Mississippi Gaming Control Act.

                                                                   ARTICLE 2

                   STATE LICENSING AUTHORITY

     201.  State licensing authority - creation.  (1)  (a)  For the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, sale, and testing of regulated marijuana in this state, there is created the state licensing authority, which is the executive director or the deputy director of the department if the executive director so designates.

          (b)  The state licensing authority also has regulatory authority for retail marijuana and retail marijuana products as permitted in Section 1 of this act and this chapter.

     (2)  The executive director is the chief administrative officer of the state licensing authority and may employ such officers and employees as may be determined to be necessary, which officers and employees are part of the department.

     (3)  A state licensing authority employee with regulatory oversight responsibilities for marijuana businesses licensed by the state licensing authority shall not work for, represent, or provide consulting services to or otherwise derive pecuniary gain from a retail marijuana business licensed by the state licensing authority or other business entity established for the primary purpose of providing services to the marijuana industry for a period of six (6) months following his or her last day of employment with the state licensing authority.

     (4)  Any person who discloses confidential records or information in violation of the provisions of this chapter is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00), or by imprisonment in the county jail for not more than six (6) months, or both.  Any criminal prosecution pursuant to the provisions of this section must be brought within five (5) years from the date the violation occurred.

     202.  Powers and duties of state licensing authority - rules - report - legislative declaration.  (1)  The state licensing authority shall:

          (a)  Develop and maintain a seed-to-sale tracking system that tracks regulated marijuana from either the seed or immature plant stage until the regulated marijuana or regulated marijuana product is sold to a customer at a retail marijuana store or a retail marijuana hospitality and sales business to ensure that no regulated marijuana grown or processed by a retail marijuana business is sold or otherwise transferred except by a retail marijuana store or a retail marijuana hospitality and sales business;

          (b)  Grant or refuse state licenses for the cultivation, manufacture, distribution, sale, hospitality, and testing of regulated marijuana and regulated marijuana products as provided by law; suspend, fine, restrict, or revoke such licenses, whether active, expired, or surrendered, upon a violation of this chapter or any rule promulgated pursuant to this chapter; and impose any penalty authorized by this chapter or any rule promulgated pursuant to this chapter.  The state licensing authority may take any action with respect to a registration or permit pursuant to this chapter as it may with respect to a license pursuant to this chapter, in accordance with the procedures established pursuant to this chapter;

          (c)  Promulgate rules for the proper regulation and control of the cultivation, manufacture, distribution, sale, and testing of regulated marijuana and regulated marijuana products and for the enforcement of this chapter and promulgate amended rules and such special rulings and findings as necessary;

          (d)  Hear and determine at a public hearing any contested state license denial and any complaints against a licensee and administer oaths and issue subpoenas to require the presence of persons and the production of papers, books, and records necessary to the determination of any hearing so held.  The state licensing authority may, at its discretion, delegate to the department hearing officers the authority to conduct licensing, disciplinary, and rule-making hearings.  When conducting the hearings, the hearing officers are employees of the state licensing authority under the direction and supervision of the executive director and the state licensing authority;

          (e)  Develop such forms, licenses, identification cards, and applications as are necessary or convenient in the discretion of the state licensing authority for the administration of this chapter or rules promulgated pursuant to this chapter;

          (f)  Prepare and transmit annually a report accounting to the Legislature and the Governor for the efficient discharge of all responsibilities assigned by law or directive to the state licensing authority; and

          (g)  Collect and maintain data related to licensing disqualifications and all sanctions based on past criminal history.

     (2)  Nothing in this chapter delegates to the state licensing authority the power to fix prices for regulated marijuana.

     (3)  Nothing in this chapter limits a law enforcement agency's ability to investigate unlawful activity in relation to a retail marijuana business.  A law enforcement agency has the authority to run a criminal history records check of a licensee or employee of a licensee during an investigation of unlawful activity related to regulated marijuana and regulated marijuana products.

     (4)  The executive director of the department of public health and environment shall provide to the state licensing authority standards for licensing laboratories pursuant to the requirements as outlined in Section 203(2)(d)(II) for regulated marijuana and regulated marijuana products.

     (5)  (a)  The state licensing authority has the authority to petition any court of competent jurisdiction for an investigative subpoena applicable to a person who is not licensed pursuant to this chapter to obtain documents or information necessary to enforce the provisions of this chapter and any rules promulgated pursuant to this chapter after reasonable efforts have been made to obtain requested documents or information without a subpoena.

          (b)  The state licensing authority may apply to any court of competent jurisdiction to temporarily restrain or preliminarily or permanently enjoin the act in question of a person who is not licensed pursuant to this chapter and to enforce compliance with this chapter or any rule or order issued pursuant to this chapter whenever it appears to the state licensing authority upon sufficient evidence satisfactory to the state licensing authority that any person has been or is committing an act prohibited by this chapter, a rule promulgated pursuant to this chapter, a rule or an order issued pursuant to this chapter, and the act:

               (i)  Threatens public health or safety;

               (ii)  Constitutes an unlawful act for which the person does not hold the required license under this chapter; or

               (iii)  Constitutes a violation of an order of the state licensing authority.

     (6)  The Legislature finds and declares that matters related to labeling as regulated pursuant to this section and Section 203(2)(f), packaging as regulated pursuant to this section and Section 203(3)(b), and testing as regulated pursuant to this section and Section 203(2)(d) are matters of statewide concern and the sole regulatory authority for labeling, packaging, and testing is Section 203.

     203.  State licensing authority - rules - definition. (1)  Permissive rule-making.  Rules promulgated pursuant to Section 202(1)(c) may include, but need not be limited to, the following subjects:

          (a)  Labeling guidelines concerning the total content of THC per unit of weight;

          (b)  Control of informational and product displays on licensed premises;

          (c)  Records to be kept by licensees and the required availability of the records;

          (d)  Permitted economic interests issued prior to July 1, 2024, including a process for a criminal history records check, a requirement that a permitted economic interest applicant submit to and pass a criminal history records check, a divestiture, and other agreements that would qualify as permitted economic interests;

          (e)  Specifications of duties of officers and employees of the state licensing authority;

          (f)  Instructions for local licensing authorities and law enforcement officers;

          (g)  Requirements for inspections, investigations, searches, seizures, forfeitures, and such additional activities as may become necessary from time to time;

          (h)  Prohibition of misrepresentation and unfair practices;

          (i)  Marijuana research and development licenses, including application requirements; renewal requirements, including whether additional research projects may be added or considered; conditions for license revocation; security measures to ensure marijuana is not diverted to purposes other than research or diverted outside of the regulated marijuana market; the amount of plants, usable marijuana, marijuana concentrates, or marijuana products a licensee may have on its premises; licensee reporting requirements; and any additional requirements;

          (j)  A definition for "disproportionate impacted area" to the extent relevant State of Mississippi data exists, is available, and is used for the purpose of determining eligibility for a social equity licensee;

          (k)  The implementation of contingency plans pursuant to Section 502(14), including the definition of outdoor cultivation, adverse weather event, or adverse natural occurrence and the process, procedures, requirements, and restrictions for contingency plans; and

          (l)  Such other matters as are necessary for the fair, impartial, stringent, and comprehensive administration of this chapter.

     (2)  Mandatory rule-making.  Rules promulgated pursuant to Section 202(1)(c) must include, but need not be limited to, the following subjects:

          (a)  Procedures consistent with this chapter for the issuance, renewal, suspension, and revocation of licenses to operate retail marijuana businesses;

          (b)  Subject to the limitations contained in Section 1(6)(a)(ii) of this act and consistent with this chapter, a schedule of application, licensing, and renewal fees for retail marijuana businesses;

          (c)  Qualifications for licensure pursuant to this chapter, including, but not limited to, the requirement for a fingerprint-based criminal history records check for all controlling beneficial owners, passive beneficial owners, managers, contractors, employees, and other support staff of entities licensed pursuant to this chapter;

          (d)  (i)  Establishment of a marijuana and marijuana products independent testing and certification program for marijuana business licensees, within an implementation time frame established by the department, requiring licensees to test marijuana and industrial hemp products to ensure, at a minimum, that products sold for human consumption by persons licensed pursuant to this chapter do not contain contaminants that are injurious to health and to ensure correct labeling.

               (ii)  Testing may include analysis for microbial and residual solvents and chemical and biological contaminants deemed to be public health hazards by the department based on medical reports and published scientific literature.

               (iii)  1.  If test results indicate the presence of quantities of any substance determined to be injurious to health, the retail marijuana licensee shall immediately quarantine the products and notify the state licensing authority.  The state licensing authority shall give the licensee an opportunity to remediate the product if the test indicated the presence of a microbial.  If the licensee is unable to remediate the product, the licensee shall document and properly destroy the adulterated product.

                    2.  If retail marijuana product test results indicate the presence of quantities of any substance determined to be injurious to health, the state licensing authority shall give the licensee an opportunity to retest the retail marijuana or retail marijuana product.

                    3.  If two (2) additional tests of the retail marijuana or retail marijuana product do not indicate the presence of quantities of any substance determined to be injurious to health, the product may be used or sold by the retail marijuana licensee.

               (iv)  1.  Testing must also verify THC potency representations and homogeneity for correct labeling and provide a cannabinoid profile for the regulated marijuana product.

                    2.  An individual retail marijuana piece of ten (10) milligrams or less that has gone through process validation is exempt from continued homogeneity testing.

                    3.  Homogeneity testing for one hundred (100) milligram servings of retail marijuana may use validation measures.

               (v)  The state licensing authority shall determine an acceptable variance for potency representations and procedures to address potency misrepresentations.  The state licensing authority shall determine an acceptable variance of at least plus or minus fifteen percent (15%) for potency representations and procedures to address potency misrepresentations.

               (vi)  The state licensing authority shall determine the protocols and frequency of regulated marijuana testing by licensees.

               (vii)  A state, local, or municipal agency shall not employ or use the results of any test of regulated marijuana or regulated marijuana products conducted by an analytical laboratory that is not certified pursuant to this subparagraph (vii) for the particular testing category or that is not accredited to the International Organization for Standardization/International Electrotechnical Commission 17025:2005 standard, or any subsequent superseding standard, in that field of testing.

               (viii)  The state licensing authority shall require a retail marijuana testing facility to be accredited by a body that is itself recognized by the International Laboratory Accreditation Cooperation in a category of testing pursuant to the International Organization for Standardization/International Electrotechnical Commission 17025:2005 standard, or a subsequent superseding standard, in order to receive certification or maintain certification; except that the state licensing authority may by rule establish conditions for providing extensions to a newly licensed retail marijuana testing facility for a period not to exceed twelve (12) months or a retail marijuana testing facility for good cause as defined by rules promulgated by the state licensing authority, which must include, but may not be limited to, when an application for accreditation has been submitted and is pending with a recognized accrediting body.

               (ix)  The state licensing authority shall promulgate rules that prevent redundant testing of marijuana and marijuana concentrate, including, but not limited to, potency testing of marijuana allocated to extractions, and residual solvent testing of marijuana concentrate when all inputs of the marijuana concentrate have passed residual solvent testing pursuant to this paragraph (d).

          (e)  Security requirements for any premises licensed pursuant to this chapter, including, at a minimum, lighting, physical security, video, and alarm requirements, and other minimum procedures for internal control as deemed necessary by the state licensing authority to properly administer and enforce the provisions of this chapter, including reporting requirements for changes, alterations, or modifications to the premises;

          (f)  Labeling requirements for regulated marijuana and regulated marijuana products sold by a retail marijuana business that include, but are not limited to:

               (i)  Warning labels;

               (ii)  Amount of THC per serving and the number of servings per package for regulated marijuana products;

               (iii)  A universal symbol indicating that the package contains marijuana; and

               (iv)  Potency of the regulated marijuana and regulated marijuana products;

          (g)  Health and safety regulations and standards for the manufacture of regulated marijuana products and the cultivation of regulated marijuana;

          (h)  Regulation of the storage of, warehouses for, and transportation of regulated marijuana and regulated marijuana products;

          (i)  Sanitary requirements for retail marijuana businesses, including, but not limited to, sanitary requirements for the preparation of regulated marijuana products;

          (j)  The reporting and transmittal of monthly sales tax payments by retail marijuana stores and any applicable excise tax payments by retail marijuana cultivation facilities;

          (k)  Authorization for the department to have access to licensing information to ensure sales, excise, and income tax payment and the effective administration of this chapter;

          (l)  Compliance with, enforcement of, or violation of any provision of this chapter, or any rule promulgated pursuant to this chapter, including procedures and grounds for denying, suspending, fining, restricting, or revoking a state license issued pursuant to this chapter;

          (m)  Establishing a schedule of penalties and procedures for issuing and appealing citations for violation of statutes and rules and issuing administrative citations;

          (n)  Retail marijuana transporter licensed businesses, including requirements for drivers, including obtaining and maintaining a valid Mississippi driver's license; insurance requirements; acceptable time frames for transport, storage, and delivery; requirements for transport vehicles; requirements for deliveries; and requirements for licensed premises;

          (o)  Retail marijuana business operator licensees, including the form and structure of allowable agreements between operators and the retail marijuana business;

          (p)  Nonescorted visitors in limited access areas;

          (q)  Temporary appointee registrations issued pursuant to Section 401(3), including occupational and business registration requirements; application time frames; notification requirements; issuance, expiration, renewal, suspension, and revocation of a temporary appointee registration; and conditions of registration;

          (r)  Requirements for a centralized distribution permit for retail marijuana cultivation facilities issued pursuant to Section 502(6) or 602(7), including, but not limited to, permit application requirements and privileges and restrictions of a centralized distribution permit;

          (s)  Requirements for issuance of colocation permits to a marijuana research and development licensee authorizing colocation with a retail marijuana products manufacturer licensed premises, including application requirements, eligibility, restrictions to prevent cross-contamination and to ensure physical separation of inventory and research activities, and other privileges and restrictions of permits;

          (t)  Development of individual identification cards for natural persons who are controlling beneficial owners, and any person operating, working in, or having unescorted access to the limited access areas of the licensed premises of a retail marijuana business including a fingerprint-based criminal history records check as may be required by the state licensing authority prior to issuing a card;

          (u)  Identification of state licensees and their controlling beneficial owners, passive beneficial owners, managers, and employees;

          (v)  The specification of acceptable forms of picture identification that a retail marijuana store may accept when verifying a sale, including, but not limited to, government-issued identification cards;

          (w)  State licensing procedures, including procedures for renewals, reinstatements, initial licenses, and the payment of licensing fees;

          (x)  The conditions under which a licensee is authorized to transfer fibrous waste to a person for the purpose of producing only industrial fiber products.  The conditions must include contract requirements that stipulate that the fibrous waste will only be used to produce industrial fiber products; record-keeping requirements; security measures related to the transport and transfer of fibrous waste; requirements for handling contaminated fibrous waste; and processes associated with handling fibrous waste.  The rules must not require licensees to alter fibrous waste from its natural state prior to transfer.

          (y)  Requiring that edible regulated marijuana products be clearly identifiable, when practicable, with a standard symbol indicating that they contain marijuana and are not for consumption by children.  The symbols promulgated by rule of the state licensing authority must not appropriate signs or symbols associated with another Mississippi business or industry;

          (z)  Requirements to prevent the sale or diversion of retail marijuana and retail marijuana products to persons under twenty-one (21) years of age;

          (aa)  The implementation of an accelerator program including, but not limited to, rules to establish requirements for social equity licensees operating on the same licensed premises or on separate premises possessed by an accelerator-endorsed licensee.  The state licensing authority's rules establishing an accelerator program may include requirements for severed custodianship of regulated marijuana products, protections of the intellectual property of a social equity licensee, incentives for accelerator-endorsed licensees, and additional requirements if a person applying for an accelerator endorsement has less than two (2) years' experience operating a licensed facility pursuant to this chapter.  An accelerator-endorsed licensee is not required to exercise the privileges of its license on the premises where a social equity licensee operates.

          (bb)  Conditions under which a licensee is authorized to collect marijuana consumer waste and transfer it to a person for the purposes of reuse or recycling in accordance with all requirements established by the department pertaining to waste disposal and recycling.  The conditions must include:

               (i)  That the person receiving marijuana consumer waste from a licensee is, to the extent required by law, registered with the department;

               (ii)  Record-keeping requirements;

               (iii)  Security measures related to the collection and transfer of marijuana consumer waste;

               (iv)  Health and safety requirements, including requirements for the handling of marijuana consumer waste; and

               (v)  Processes associated with handling marijuana consumer waste, including destruction of any remaining regulated marijuana in the marijuana consumer waste.

          (cc)  Requirements for a transition permit for retail marijuana cultivation facilities issued pursuant to Section 313(13)(c), including, but not limited to, permit application requirements and restrictions of a transition permit.

          (dd)  Requirements for retail marijuana and retail marijuana products delivery as described in Section 501(13) and Section 505(5), including:

               (i)  Training requirements for personnel of retail marijuana stores and retail marijuana transporters that hold a retail marijuana delivery permit who will deliver retail marijuana or retail marijuana products pursuant to this chapter and requirements that retail marijuana stores and retail marijuana transporters obtain a responsible vendor designation pursuant to Section 1001 prior to conducting a delivery;

               (ii)  Security requirements;

               (iii)  Delivery vehicle requirements, including requirements for surveillance;

               (iv)  Record-keeping requirements;

               (v)  Limits on the amount of retail marijuana and retail marijuana products that may be carried in a delivery vehicle and delivered to an individual, which cannot exceed limits placed on sales at retail marijuana stores;

               (vi)  Health and safety requirements for retail marijuana and retail marijuana products delivered to an individual;

               (vii)  Confidentiality requirements to ensure that persons delivering retail marijuana and retail marijuana products pursuant to this chapter do not disclose personal identifying information to any person other than those who need that information in order to take, process, or deliver the order or as otherwise required or authorized by this chapter;

               (viii)  An application fee and annual renewal fee for the retail marijuana delivery permit.  The amount of the fee must reflect the expected costs of administering the retail marijuana delivery permit and may be adjusted by the state licensing authority to reflect the permit's actual direct and indirect costs;

               (ix)  The permitted hours of delivery of retail marijuana and retail marijuana products;

               (x)  Requirements for areas where retail marijuana and retail marijuana products orders are stored, weighed, packaged, prepared, and tagged, including requirements that retail marijuana and retail marijuana products cannot be placed into a delivery vehicle until after an order has been placed and that all delivery orders must be packaged on the licensed premises of a retail marijuana store or its associated state licensing authority-authorized storage facility as defined by rule after an order has been received; and

               (xi)  Payment methods, including, but not limited to, the use of gift cards and prepayment accounts.

          (ee)  (i)  1.  Ownership and financial disclosure procedures and requirements pursuant to this chapter;

                    2.  Records that a retail marijuana business is required to maintain regarding its controlling beneficial owners, passive beneficial owners, and indirect financial interest holders that may be subject to disclosure at renewal or as part of any other investigation following initial licensure of a retail marijuana business;

                    3.  Procedures and requirements for findings of suitability pursuant to this chapter, including fees necessary to cover the direct and indirect costs of any suitability investigation;

                    4.  Procedures and requirements concerning the divestiture of the beneficial ownership of a person found unsuitable by the state licensing authority;

                    5.  Procedures, processes, and requirements for transfers of ownership involving a publicly traded corporation, including, but not limited to, mergers with a publicly traded corporation, investment by a publicly traded corporation, and public offerings;

                    6.  Designation of persons that by virtue of common control constitute controlling beneficial owners;

                    7.  Modification of the percentage of owner's interests that may be held by a controlling beneficial owner and passive beneficial owner;

                    8.  Designation of persons that qualify for an exemption from an otherwise required finding of suitability; and

                    9.  Designation of indirect financial interest holders and qualified institutional investors.

               (ii)  Rules promulgated pursuant to this paragraph (ee) must not be any more restrictive than the requirements expressly established under this chapter.

          (ff)  The implementation of marijuana hospitality and retail marijuana hospitality and sales business licenses, including, but not limited to:

               (i)  General insurance liability requirements;

               (ii)  A sales limit per transaction for retail marijuana and retail marijuana products that may be sold to a patron of a retail marijuana hospitality and sales business; except that the sales limit established by the state licensing authority must not be an amount less than one (1) gram of retail marijuana flower, one-quarter (1/4) of one (1) gram of retail marijuana concentrate, or a retail marijuana product containing not more than ten (10) milligrams of active THC;

               (iii)  Restrictions on the type of any retail marijuana or retail marijuana product authorized to be sold, including that the marijuana or product be meant for consumption in the licensed premises of the business;

               (iv)  Prohibitions on activity that would require additional licensure on the licensed premises, including, but not limited to, sales, manufacturing, or cultivation activity;

               (v)  Requirements for marijuana hospitality businesses and retail marijuana hospitality and sales businesses operating pursuant to Section 509 or 510 in a retail food business; and

               (vi)  Requirements for marijuana hospitality businesses and retail marijuana hospitality and sales business licensees to destroy any unconsumed marijuana or marijuana products left behind by a patron.

          (gg)  For marijuana hospitality businesses that are mobile, regulations including, but not limited to:

               (i)  Registration of vehicles and proper designation of vehicles used as mobile licensed premises;

               (ii)  Surveillance cameras inside the vehicles;

               (iii)  Global positioning system tracking and route logging in an established route manifest system;

               (iv)  Ensuring activity is not visible outside of the vehicle; and

               (v)  Proper ventilation within the vehicle.

          (hh)  The circumstances that constitute a significant physical or geographic hardship as used in Section 501(13);

          (ii)  Requirements for retail marijuana concentrate to promote consumer health and awareness, which shall include a recommended serving size, visual representation of one (1) recommended serving, and labeling requirements and may include a measuring device that may be used to measure one (1) recommended serving.

     (3)  In promulgating rules pursuant to this section, the state licensing authority may seek the assistance of any other appropriate state agencies when necessary before promulgating rules on the following subjects:

          (a)  Signage, marketing, and advertising, including, but not limited to, a prohibition on mass-market campaigns that have a high likelihood of reaching persons under twenty-one (21) years of age and other such rules that may include:

               (i)  Allowing packaging and accessory branding;

               (ii)  Prohibiting health or physical benefit claims in advertising, merchandising, and packaging;

               (iii)  Prohibiting unsolicited pop-up advertising on the Internet;

               (iv)  Prohibiting banner ads on mass-market websites;

               (v)  Prohibiting opt-in marketing that does not permit an easy and permanent opt-out feature;

               (vi)  Prohibiting marketing directed toward location-based devices, including, but not limited to, cellular phones, unless the marketing is a mobile device application installed on the device by the owner of the device who is twenty-one (21) years of age or older and includes a permanent and easy opt-out feature;

               (vii)  Prohibiting advertising and marketing by a retail marijuana business that is specifically directed at persons who are under twenty-one (21) years of age; and

               (viii)  Requirements that any advertising or marketing specific to retail marijuana concentrate include a notice regarding the potential risks of retail marijuana concentrate overconsumption;

          (b)  A prohibition on the sale of regulated marijuana and regulated marijuana products unless the product is:

               (i)  Packaged in packaging meeting requirements established by the state licensing authority similar to the federal "Poison Prevention Packaging Act of 1970", 15 USC Section 1471 et seq., as amended; and

               (ii)  Placed in an opaque and resealable exit package or container meeting requirements established by the state licensing authority at the point of sale prior to exiting the store;

          (c)  The safe and lawful transport of regulated marijuana and regulated marijuana products between the licensed business and testing laboratories;

          (d)  A standardized marijuana serving size amount for edible retail marijuana products that does not contain more than ten (10) milligrams of active THC, designed only to provide consumers with information about the total number of servings of active THC in a particular retail marijuana product, not as a limitation on the total amount of THC in any particular item; labeling requirements regarding servings for edible retail marijuana products; and limitations on the total amount of active THC in a sealed internal package that is no more than one hundred (100) milligrams of active THC;

          (e)  Prohibition on or regulation of additives to any regulated marijuana product, including, but not limited to, those that are toxic, designed to make the product more addictive, designed to make the product more appealing to children, or misleading to consumers, but not including common baking and cooking items;

          (f)  Permission for a local fire department to conduct an annual fire inspection of a retail marijuana cultivation facility; and

          (g)  A prohibition on the production and sale of edible regulated marijuana products that are in the distinct shape of a human, animal, or fruit.  Geometric shapes and products that are simply fruit flavored are not considered fruit.  Products in the shape of a marijuana leaf are permissible.  Nothing in this paragraph (g) applies to a company logo.

          (h)  A requirement that every retail marijuana store post, at all times and in a prominent place, a warning that has a minimum height of three (3) inches and a width of six (6) inches and that reads:

"Warning:  Using marijuana, in any form, while you are pregnant or breastfeeding passes THC to your baby and may be harmful to your baby.  There is no known safe amount of marijuana use during pregnancy or breastfeeding."

     (4)  Equivalency.  Rules promulgated pursuant to Section 202(1)(c) must also include establishing the equivalent of one (1) ounce of retail marijuana flower in various retail marijuana products, including retail marijuana concentrate.  Prior to promulgating the rules required by this subsection (4), the state licensing authority may contract for a scientific study to determine the equivalency of marijuana flower in retail marijuana products, including retail marijuana concentrate.

     (5)  Statewide class system cultivation facility rules - retail marijuana.  (a)  The state licensing authority shall create a statewide licensure class system for retail marijuana cultivation facility licenses.  The classifications may be based upon square footage of the facility; lights, lumens, or wattage; lit canopy; the number of cultivating plants; other reasonable metrics; or any combination thereof.  The state licensing authority shall create a fee structure for the licensure class system.

          (b)  The state licensing authority may establish limitations on retail marijuana production through one (1) or more of the following methods:

               (i)  Placing or modifying a limit on the number of licenses that it issues, by class or overall, but in placing or modifying the limits, the authority shall consider the reasonable availability of new licenses after a limit is established or modified;

               (ii)  Placing or modifying a limit on the amount of production permitted by a retail marijuana cultivation facility license or class of licenses based upon some reasonable metric or set of metrics including, but not limited to, those items detailed in paragraph (a) of this subsection, previous months' sales, pending sales, or other reasonable metrics as determined by the state licensing authority; and

               (iii)  Placing or modifying a limit on the total amount of production by retail marijuana cultivation facility licensees in the state collectively, based upon some reasonable metric or set of metrics including, but not limited to, those items detailed in paragraph (a) of this subsection, as determined by the state licensing authority.

          (c)  Notwithstanding anything contained in this chapter to the contrary, in considering any such limitations, the state licensing authority, in addition to any other relevant considerations, shall:

               (i)  Consider the total current and anticipated demand for retail marijuana and retail marijuana products in Mississippi; and

               (ii)  Attempt to minimize the market for unlawful marijuana.

     (7)  The state licensing authority may deny, suspend, revoke, fine, or impose other sanctions against a person's license issued pursuant to this chapter if the state licensing authority finds the person or the person's controlling beneficial owner, passive beneficial owner, or indirect financial interest holder failed to timely file any report, disclosure, registration statement, or other submission required by any state or federal regulatory authority that is related to the conduct of their business.

     (8)  The state licensing authority shall treat a metered-dose inhaler the same as a vaporized delivery device for purposes of regulation and testing.

     (9)  (a)  The state licensing authority may, by rule, establish procedures for the conditional issuance of an employee license identification card at the time of application.

          (b)  (i)  The state licensing authority shall base its issuance of an employee license identification card pursuant to this subsection (9) on the results of an initial investigation that demonstrate the applicant is qualified to hold such license.  The employee license application for which an employee license identification card was issued pursuant to this subsection (9) remains subject to denial pending the complete results of the applicant's initial fingerprint-based criminal history record check.

               (ii)  Results of a fingerprint-based criminal history record check that demonstrate that an applicant possessing an employee license identification card pursuant to this subsection (9) is not qualified to hold a license issued under this chapter are grounds for denial of the employee license application.  If the employee license application is denied, the applicant shall return the employee license identification card to the state licensing authority within a time period that the state licensing authority establishes by rule.

     204.  Confidentiality.  (1)  The state licensing authority shall maintain the confidentiality of:

          (a)  Reports or other information obtained from a retail marijuana licensee or retail marijuana license applicant containing any individualized data, information, or records related to the applicant or licensee or its operation, including sales information, leases, business organization records, financial records, tax returns, credit reports, cultivation information, testing results, and security information and plans, or revealing any customer information, or any other records that are exempt from public inspection pursuant to state law.  Such reports or other information may be used only for a purpose authorized by this chapter, for investigation or enforcement of any international, federal, state, or local securities law or regulations, or for any other state or local law enforcement purpose.

          (b)  Investigative records and documents related to ongoing investigations.  Those records and documents may be used only for a purpose authorized by this chapter or for any other state or local law enforcement purpose.

          (c)  Computer systems maintained by the state licensing authority and the vendors with which the state licensing authority has contracted.

     (2)  The state licensing authority shall make available for public inspection:

          (a)  Documents related to final agency actions and orders;

          (b)  Records related to testing on an aggregated and de-identified basis;

          (c)  Demographic information related to applicants and licensees available on an aggregated and de-identified basis; and

          (d)  Enforcement forms and compliance checklists.

                            PART 3

                      LICENSING PROCEDURES

     301.  Local licensing authority - applications - licenses.  (1)  When the state licensing authority receives an application for original licensing or renewal of an existing license or permit for any retail marijuana business, the state licensing authority shall provide, within seven (7) days, a copy of the application to the local jurisdiction in which the business is to be located unless the local jurisdiction has prohibited the operation of retail marijuana businesses pursuant to Section 1(6)(d) of this act.  The local jurisdiction shall determine whether the application complies with local restrictions on time, place, manner, and the number of retail marijuana businesses.  The local jurisdiction shall inform the state licensing authority whether the application complies with local restrictions on time, place, manner, and the number of retail marijuana businesses.

     (2)  A local jurisdiction may impose a separate local licensing requirement for retail marijuana businesses as a part of its restrictions on time, place, manner, and the number of marijuana businesses.  A local jurisdiction may decline to impose any local licensing requirements, but a local jurisdiction shall notify the state licensing authority that it either approves or denies each application forwarded to it.

     302.  Public hearing notice - posting and publication.  (1)  If a local jurisdiction issues local licenses for a retail marijuana business, a local jurisdiction may schedule a public hearing on the application.  If the local jurisdiction schedules a hearing, it shall post and publish public notice thereof not less than ten (10) days prior to the hearing.  The local jurisdiction shall give public notice by posting a sign in a conspicuous place on the license applicant's premises for which a local license application has been made and by publication in a newspaper of general circulation in the county in which the applicant's premises are located.

     (2)  If a local jurisdiction does not issue local retail marijuana business licenses, the local jurisdiction may give public notice of the state license application by posting a sign in a conspicuous place on the state license applicant's premises for which a state license application has been made and by publication in a newspaper of general circulation in the county in which the applicant's premises are located.

     303.  State licensing authority - application and issuance procedures.  (1)  Applications for a state retail marijuana business license under the provisions of this chapter must be made to the state licensing authority on forms prepared and furnished by the state licensing authority and must set forth such information as the state licensing authority may require to enable the state licensing authority to determine whether a retail marijuana business license should be granted.  The information must include the name and address of the applicant, disclosures required by Section 307, and all other information deemed necessary by the state licensing authority.  Each application must be verified by the oath or affirmation of such person or persons as the state licensing authority may prescribe.

     (2)  The state licensing authority may issue a state license to an applicant pursuant to this section for a retail marijuana business upon completion of the applicable criminal history records check associated with the application, and the state license is conditioned upon local jurisdiction approval.  A license applicant is prohibited from operating a licensed retail marijuana business without state and local jurisdiction approval.  If the applicant does not receive local jurisdiction approval within one (1) year from the date of state licensing authority approval, the state license expires and may not be renewed.  If an application is denied by the local licensing authority, the state licensing authority shall revoke the state-issued license.

     (3)  Nothing in this chapter preempts or otherwise impairs the power of a local government to enact ordinances concerning matters authorized to local governments.

     (4)  Prior to accepting an application for a license, registration, or permit, the state licensing authority shall inform the applicant that having a retail marijuana license and working in the retail marijuana industry may have adverse federal immigration consequences.

     304.  Denial of application.  (1)  The state licensing authority shall deny a state license if the premises on which the applicant proposes to conduct its business does not meet the requirements of this chapter or for reasons set forth in Section 103(17)(c) or 305, and the state licensing authority may refuse or deny a license, renewal, reinstatement, or initial license for good cause as defined by Section 103(17)(a) or (17)(b).

     (2)  If the state licensing authority denies a state license pursuant to subsection (1) of this section, the applicant is entitled to a hearing and judicial review.  The state licensing authority shall provide written notice of the grounds for denial of the state license to the applicant and to the local licensing authority at least fifteen (15) days prior to the hearing.

     305.  Persons prohibited as licensees - definition.  (1)  A license provided by this chapter shall not be issued to or held by:

          (a)  A person until the fee therefore has been paid;

          (b)  An individual whose criminal history indicates that he or she is not of good moral character;

          (c)  A person other than an individual if the criminal history of any of its controlling beneficial owners indicates that a controlling beneficial owner is not of good moral character;

          (d)  A person under twenty-one (21) years of age;

          (e)  A person licensed pursuant to this chapter who, during a period of licensure, or who, at the time of application, has failed to:

               (i)  File any tax return with a taxing agency related to a retail marijuana business;

               (ii)  Pay any taxes, interest, or penalties due as determined by final agency action related to a retail marijuana business;

          (f)  A person who fails to meet qualifications for licensure that directly and demonstrably relate to the operation of a retail marijuana business;

          (g)  (i)  A person who was convicted of a felony in the three (3) years immediately preceding his or her application date or who is currently subject to a sentence for a felony conviction; except that, for a person applying to be a social equity licensee, a marijuana conviction shall not be the sole basis for license denial; or

               (ii)  A person who is currently subject to a deferred judgment or sentence for a felony;

          (h)  A person who employs another person at a retail marijuana business who has not submitted fingerprints for a criminal history records check or whose criminal history records check reveals that the person is ineligible;

          (i)  A sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority;

          (j)  A person applying for a license for a location that is currently licensed as a retail food establishment;

          (k)  A publicly traded entity that does not constitute a publicly traded corporation as defined in this chapter;

          (l)  A person that is or has a controlling beneficial owner, passive beneficial owner, or indirect financial interest holder that is organized or formed under the laws of a country determined by the United States Secretary of State to have repeatedly provided support for acts of international terrorism or is included among the list of "covered countries" in Section 1502 of the federal "Dodd-Frank Wall Street Reform and Consumer Protection Act", Public Law 111-203;

          (m)  A person that is or has a controlling beneficial owner that is disqualified as a "bad actor" pursuant to 17 CFR 230.506(d)(1);

          (n)  A person that is not a publicly traded corporation that is or has a passive beneficial owner or indirect financial interest holder that is disqualified as a "bad actor" pursuant to 17 CFR 230.506(d)(1);

          (o)  A person that is a publicly traded corporation that is or has a nonobjecting passive beneficial owner or indirect financial interest holder that is disqualified as a "bad actor" pursuant to 17 CFR 230.506(d)(1); or

          (p)  A person that is or has a controlling beneficial owner, passive beneficial owner, or indirect financial interest holder that is prohibited from engaging in transactions pursuant to this chapter due to its designation on the "Specially Designated Nationals and Blocked Persons" list maintained by the federal Office of Foreign Assets Control.

     (2)  The state licensing authority may deny or revoke a license if the applicant or licensee's criminal character or criminal record poses a threat to the regulation or control of marijuana.

     (3)  (a)  In investigating the qualifications of an applicant or a licensee, the state and local licensing authorities may have access to criminal history records information furnished by a criminal justice agency subject to any restrictions imposed by such agency.  If the state or local licensing authority considers the applicant's criminal history record, the state or local licensing authority shall also consider any information provided by the applicant regarding such criminal history record, including, but not limited to, evidence of rehabilitation, character references, and educational achievements, especially those items pertaining to the period of time between the applicant's last criminal conviction and the consideration of the application for a state license.

          (b)  As used in paragraph (a) of this subsection, "criminal justice agency" means any federal, state, or municipal court or any governmental agency or subunit of such agency that administers criminal justice pursuant to a statute or executive order and that allocates a substantial part of its annual budget to the administration of criminal justice.

          (c)  At the time of filing an application for issuance or renewal of a state retail marijuana business license, an applicant shall submit a set of his or her fingerprints and file personal history information concerning the applicant's qualifications for a state license on forms prepared by the state licensing authority.  The state or local licensing authority or local jurisdiction shall submit the fingerprints to the Department of Public Safety for the purpose of conducting fingerprint-based criminal history records checks.  The Department of Public Safety shall forward the fingerprints to the Federal Bureau of Investigation for the purpose of conducting fingerprint-based criminal history records checks.  The state or local licensing authority or local jurisdiction may acquire a name-based criminal history records check for an applicant or a license holder who has twice submitted to a fingerprint-based criminal history records check and whose fingerprints are unclassifiable.  An applicant who has previously submitted fingerprints for state or local licensing purposes may request that the fingerprints on file be used.  The state or local licensing authority or local jurisdiction shall use the information resulting from the fingerprint-based criminal history records check to investigate and determine whether an applicant is qualified to hold a state or local license pursuant to this chapter.  The state or local licensing authority or local jurisdiction may verify any of the information an applicant is required to submit.

     306.  Business and owner requirements - legislative declaration - definition.  (1)  (a)  The Legislature finds and declares that:

               (i)  Retail marijuana businesses need to be able to access capital in order to effectively grow their businesses and remain competitive in the marketplace;

               (ii)  The current regulatory structure for regulated marijuana and regulated marijuana products creates a substantial barrier to investment from out-of-state interests and publicly traded corporations;

               (iii)  There is insufficient capital in the state to properly fund the capital needs of Mississippi retail marijuana businesses;

               (iv)  Mississippi retail marijuana businesses need to have ready access to capital from investors from outside of Mississippi;

               (v)  Providing access to legitimate sources of capital helps prevent the opportunity for those who engage in illegal activity to gain entry into the state's regulated retail marijuana market;

               (vi)  Publicly traded corporations offering securities for investment in retail marijuana businesses must tell the public the truth about their business, the securities they are selling, and the risks involved with investing in retail marijuana businesses, and persons that sell and trade securities related to retail marijuana businesses are prohibited from engaging in deceit, misrepresentations, and other fraud in the sale of the securities; and

               (vii)  Recognizing that participation by publicly traded corporations in Mississippi's retail marijuana industry creates an increased need to assess barriers of entry for minority- and woman-owned businesses, with such efforts being made to identify solutions to arrive at a greater balance and for further equity for minority- and woman-owned businesses, and in a manner that is consistent with the public safety and enforcement goals as stated in this subsection (1), it is therefore of substantive importance to address the lack of minority- and woman-owned businesses' inclusion in Mississippi's retail marijuana industry, social justice issues associated with marijuana prohibition, suitability issues relating to past convictions for potential licensees, licensing fees, and economic challenges that arise with the application processes.

          (b)  Therefore, the Legislature is providing a mechanism for Mississippi retail marijuana businesses to access capital from investors in other states and from certain publicly traded corporations pursuant to this chapter.

     (2)  (a)  All natural persons with day-to-day operational control over the business must be Mississippi residents.

          (b)  A person, other than an individual, that is a retail marijuana business or a controlling beneficial owner shall appoint and continuously maintain a registered agent.  The retail marijuana business shall inform the state licensing authority of a change in the registered agent within ten (10) days after the change.

     (3)  A person who qualifies as a social equity licensee may apply for any regulated marijuana business license or permit, including, but not limited to, accelerator store, accelerator cultivator, and accelerator manufacturer licenses, issued pursuant to this chapter.  A person qualifies as a social equity licensee if such person meets the following criteria, in addition to any criteria established by rule of the state licensing authority:

          (a)  Is a Mississippi resident;

          (b)  Has not been the beneficial owner of a license subject to disciplinary or legal action from the state resulting in the revocation of a license issued pursuant to this chapter;

          (c)  Has demonstrated at least one (1) of the following:

               (i)  The applicant has resided for at least fifteen (15) years between the years 1990 and 2012 in a census tract designated by the Mississippi Development Authority as an opportunity zone or designated as a disproportionate impacted area as defined by rule pursuant to Section 203(1)(j);

               (ii)  The applicant or the applicant's parent, legal guardian, sibling, spouse, child, or minor in their guardianship was arrested for a marijuana offense, convicted of a marijuana offense, or was subject to civil asset forfeiture related to a marijuana investigation; or

               (iii)  The applicant's household income in the year prior to application did not exceed an amount determined by rule of the state licensing authority; and

          (d)  The social equity licensee, or collectively one (1) or more social equity licensees, holds at least fifty-one percent (51%) of the beneficial ownership of the regulated marijuana business license.

     (5)  A person who meets the criteria in this section for a social equity licensee, pursuant to rule and agency discretion, may be eligible for incentives available through the Mississippi Development Authority, including but not limited to a reduction in application or license fees.

     307.  Business owner and financial interest disclosure requirements.  (1)  Applicants for the issuance of a state license shall disclose to the state licensing authority the following:

          (a)  A complete and accurate organizational chart of the retail marijuana business reflecting the identity and ownership percentages of its controlling beneficial owners;

          (b)  The following information regarding all controlling beneficial owners of the retail marijuana business:

               (i)  If the controlling beneficial owner is a publicly traded corporation, the applicant shall disclose the controlling beneficial owners' managers and any beneficial owners that directly or indirectly beneficially own ten percent (10%) or more of the owner's interest in the controlling beneficial owner.

               (ii)  If the controlling beneficial owner is not a publicly traded corporation and is not a qualified private fund, the applicant shall disclose the controlling beneficial owner's managers and any beneficial owners that directly or indirectly beneficially own ten percent (10%) or more of the owner's interest in the controlling beneficial owner.

               (iii)  If the controlling beneficial owner is a qualified private fund, the applicant shall disclose a complete and accurate organizational chart of the qualified private fund reflecting the identity and ownership percentages of the qualified private fund's managers, investment advisers, investment adviser representatives, any trustee or equivalent, and any other person that controls the investment in, or management or operations of, the retail marijuana business.

               (iv)  If the controlling beneficial owner is a natural person, the applicant shall disclose the natural person's identifying information.

          (c)  A person that is both a passive beneficial owner and an indirect financial interest holder in the retail marijuana business; and

          (d)  Any indirect financial interest holder that holds two (2) or more indirect financial interests in the retail marijuana business or that is contributing over fifty percent (50%) of the operating capital of the retail marijuana business.

     (2)  The state licensing authority may request that the retail marijuana business disclose the following:

          (a)  Each beneficial owner and affiliate of an applicant or retail marijuana business, or controlling beneficial owner that is not a publicly traded corporation or a qualified private fund; and

          (b)  Each affiliate of a controlling beneficial owner that is a qualified private fund.

     (3)  For reasonable cause, the state licensing authority may require disclosure of:

          (a)  A complete and accurate list of each nonobjecting beneficial interest owner of a retail marijuana business, or controlling beneficial owner that is a publicly traded corporation;

          (b)  Passive beneficial owners of the retail marijuana business, and for any passive beneficial owner that is not a natural person, the members of the board of directors, general partners, managing members, or managers and ten percent (10%) or more owners of the passive beneficial owner;

          (c)  A list of each beneficial owner in a qualified private fund that is a controlling beneficial owner;

          (d)  All indirect financial interest holders of the retail marijuana business, and for any indirect financial interest holder that is not a natural person and ten percent (10%) or more beneficial owners of the indirect financial interest holder.

     (4)  An applicant or retail marijuana business that is not a publicly traded corporation shall affirm under penalty of perjury that it exercised reasonable care to confirm that its passive beneficial owners, indirect financial interest holders, and qualified institutional investors are not persons prohibited pursuant to Section 305, or otherwise restricted from holding an interest under this chapter.  An applicant's or retail marijuana business's failure to exercise reasonable care is a basis for denial, fine, suspension, revocation, or other sanction by the state licensing authority.

     (5)  An applicant or retail marijuana business that is a publicly traded corporation shall affirm under penalty of perjury that it exercised reasonable care to confirm that its nonobjecting passive beneficial owners, indirect financial interest holders, and qualified institutional investors are not persons prohibited pursuant to Section 305, or otherwise restricted from holding an interest under this chapter.  An applicant's or retail marijuana business's failure to exercise reasonable care is a basis for denial, fine, suspension, revocation, or other sanction by the state licensing authority.

     (6)  This section does not restrict the state licensing authority's ability to reasonably request information or records at renewal or as part of any other investigation following initial licensure of a retail marijuana business.

     (7)  The Secretary of State may, by rule or order, require additional disclosures if such information is full and fair with respect to the investment or in the interest of investor protection.

     308.  Business owner and financial interest suitability requirements.  (1)  This section applies to all persons required to submit a finding of suitability.

     (2)  Any person intending to become a controlling beneficial owner of any retail marijuana business, except as otherwise provided in Section 310(4), shall first submit a request to the state licensing authority for a finding of suitability or an exemption from an otherwise required finding of suitability.

     (3)  For reasonable cause, any other person that was disclosed or that should have been disclosed pursuant to Section 307, including but not limited to a passive beneficial owner, shall submit a request for a finding of suitability.

     (4)  Failure to provide all requested information in connection with a request for a finding of suitability is grounds for denial of that finding of suitability.

     (5)  Failure to receive all required findings of suitability is grounds for denial of an application or for suspension, revocation, or other sanction against the license by the state licensing authority. For initial applications, the finding of suitability shall be required prior to submitting the application for licensure.

     (6)  Any person required to obtain a finding of suitability shall do so on forms provided by the state licensing authority, and the forms must contain such information as the state licensing authority may require.  Each suitability application must be verified by the oath or affirmation of the persons prescribed by the state licensing authority.

     (7)  A person requesting a finding of suitability shall provide the state licensing authority with a deposit to cover the direct and indirect costs of any investigation necessary to determine any required finding of suitability unless otherwise established by rule.  The state licensing authority may make further rules regarding the deposit and direct and indirect costs that must be billed against the deposit, unless otherwise established by rule.

     (8)  When determining whether a person is suitable or unsuitable for licensure, the state licensing authority may consider the person's criminal character or record, licensing character or record, or financial character or record.

     (9)  A person that would otherwise be required to obtain a finding of suitability may request an exemption from the state licensing authority as determined by rule.

     (10)  Absent reasonable cause, the state licensing authority shall approve or deny a request for a finding of suitability within one hundred twenty (120) days from the date of submission of the request for such finding.

     (11)  The state licensing authority may deny, suspend, revoke, fine, or impose other sanctions against a person's license issued pursuant to this chapter if the state licensing authority finds the person or the person's controlling beneficial owner, passive beneficial owner, or indirect financial interest holder to be unsuitable pursuant to this section.

     309.  Restrictions for applications for new licenses.  (1)  The state licensing authority shall not approve an application for the issuance of a state retail marijuana business license pursuant to this chapter until it is established that the applicant is, or will be, entitled to possession of the premises for which application is made under a lease, rental agreement, or other arrangement for possession of the premises or by virtue of ownership of the premises.

     310.  Transfer of ownership.  (1)  A state or local license granted under the provisions of this chapter is not transferable except as provided in this section, but this section does not prevent a change of location as provided in Section 313(13).

     (2)  For a transfer of ownership involving a controlling beneficial owner, a license holder shall apply to the state and local licensing authorities on forms prepared and furnished by the state licensing authority.  In determining whether to permit a transfer of ownership, the state and local licensing authorities shall consider only the requirements of this chapter, any rules promulgated by the state licensing authority, and any other local restrictions.  The local licensing authority or local jurisdiction may hold a hearing on the application for transfer of ownership.  The local licensing authority or local jurisdiction shall not hold a hearing pursuant to this subsection (2) until the local licensing authority or local jurisdiction has posted a notice of hearing in the manner described in Section 302 on the licensed premises for a period of ten (10) days and has provided notice of the hearing to the applicant at least ten (10) days prior to the hearing.  Any transfer of ownership hearing by the state licensing authority must be held in compliance with the requirements specified in Section 302.

     (3)  For a transfer of ownership involving a passive beneficial owner, the license holder shall notify the state licensing authority on forms prepared and furnished by the state licensing authority within forty-five (45) days to the extent disclosure is required by Section 307.

     (4)  A person that becomes a controlling beneficial owner of a publicly traded corporation that is a retail marijuana business or that becomes a beneficial owner, through direct or indirect ownership of a controlling beneficial owner, of ten percent (10%) or more of a retail marijuana business that is a publicly traded corporation must disclose the information required by Section 307 and apply to the state licensing authority for a finding of suitability or exemption from a finding of suitability pursuant to Section 308 within forty-five (45) days after becoming such a controlling beneficial owner.  A retail marijuana business shall notify each person that is subject to this subsection (4) of its requirements as soon as the retail marijuana business becomes aware of the beneficial ownership triggering the requirement, provided that the obligations of the person subject to this subsection (4) are independent of, and unaffected by, the retail marijuana business's failure to give the notice.

     311.  Licensing in general.  (1)  Local jurisdictions are authorized to adopt and enforce regulations for retail marijuana businesses that are at least as restrictive as the provisions of this chapter and any rule promulgated pursuant to this chapter.

     (2)  A retail marijuana business may not operate until it is licensed by the state licensing authority pursuant to this chapter and approved by the local jurisdiction.  If an application is denied by the local licensing authority, the state licensing authority shall revoke the state-issued license.  In connection with a license, the applicant shall provide a complete and accurate application as required by the state licensing authority.

     (3)  A retail marijuana business that is not a publicly traded corporation shall notify the state licensing authority in writing of the name, address, and date of birth of a controlling beneficial owner, passive beneficial owner, or manager before the new controlling beneficial owner, passive beneficial owner, or manager begins managing or associating with the operation.  Any controlling beneficial owner, passive beneficial owner, manager, or employee must pass a fingerprint-based criminal history record check as required by the state licensing authority and obtain the required identification prior to being associated with, managing, owning, or working at the operation.

     (4)  A retail marijuana business shall not acquire, possess, cultivate, deliver, transfer, transport, supply, or dispense marijuana for any purpose except as authorized by Section 1 of this act and this chapter.

     (5)  (a)  All employee licenses granted pursuant to this chapter are valid for a period not to exceed two (2) years after the date of issuance unless revoked or suspended pursuant to this chapter or the rules promulgated pursuant to this chapter.

          (b)  All regulated marijuana business licenses and licenses granted to a controlling beneficial owner pursuant to this chapter are valid for a period of one (1) year after the date of issuance unless revoked or suspended pursuant to this chapter or the rules promulgated pursuant to this chapter.

     (6)  Before granting a local or state license, the respective licensing authority may consider, except where this chapter specifically provides otherwise, the requirements of this chapter and any rules promulgated pursuant to this chapter, and all other reasonable restrictions that are or may be placed upon the licensee by the licensing authority.

     (7)  (a)  Each license issued under this chapter is separate and distinct.  It is unlawful for a person to exercise any of the privileges granted under a license other than the license that the person holds or for a licensee to allow any other person to exercise the privileges granted under the licensee's license.  A separate license is required for each specific business or business entity and each geographical location.

          (b)  At all times, a licensee shall possess and maintain possession of the premises for which the license is issued by ownership, lease, rental, or other arrangement for possession of the premises.

     (8)  (a)  The licenses provided pursuant to this chapter must specify the date of issuance, the period of licensure, the name of the licensee, and the premises licensed.  The licensee shall conspicuously place the license at all times on the licensed premises.

          (b)  The state licensing authority shall not transfer location of or renew a state license until the applicant provides verification that a license was issued and granted by the local licensing authority for the previous license term.

     (9)  In computing any period of time prescribed by this chapter, the day of the act, event, or default from which the designated period of time begins to run is not included. Saturdays, Sundays, and legal holidays are counted as any other day.

     (10)  Except for a publicly traded corporation, a retail marijuana business licensee shall report each transfer or change of financial interest in the license to the state and local licensing authorities and receive approval prior to any transfer or change pursuant to Section 310.  Except for a publicly traded corporation, a report is required for transfers of an owner's interest of any entity regardless of size.

     (11)  Each licensee shall manage the licensed premises himself or herself or employ a separate and distinct manager on the premises and shall report the name of the manager to the state and local licensing authorities.  The licensee shall report any change in manager to the state and local licensing authorities prior to the change pursuant to subsection (3) of this section.

     (12)  (a)  A licensee may move the permanent location to any other place in Mississippi once permission to do so is granted by the state and local licensing authorities or local jurisdiction provided for in this chapter.  Upon receipt of an application for change of location, the state licensing authority shall, within seven (7) days, submit a copy of the application to the local licensing authority or local jurisdiction to determine whether the transfer complies with all local restrictions on change of location.

          (b)  In permitting a change of location, the state and local licensing authorities or local jurisdiction shall consider all reasonable restrictions that are or may be placed upon the new location by the governing board or local licensing authority of the municipality, county, or municipality and county, and any such change in location must be in accordance with all requirements of this chapter and rules promulgated pursuant to this chapter.

          (c)  (i)  A retail marijuana cultivation facility that has obtained an approved change of location from the state licensing authority may operate one license at two (2) geographical locations for the purpose of transitioning operations from one location to another if:

                    1.  The total plants cultivated at both locations do not exceed any plant count limit imposed on the license by this chapter and any rules promulgated by the state licensing authority;

                    2.  The licensed premises of both geographical locations comply with all surveillance, security, and inventory tracking requirements imposed by this chapter and any rules promulgated by the state licensing authority;

                    3.  Both the transferring location and the receiving location track all plants virtually in transition in the seed-to-sale tracking system to ensure proper tracking for taxation and tracking purposes;

                    4.  Operation at both geographical locations does not exceed one hundred eighty (180) days, unless for good cause shown, the one-hundred-eighty-day deadline may be extended for an additional one hundred twenty (120) days; and

                    5.  The retail marijuana cultivation facility licensee obtains the proper state permit and local permit or license. If the change of location is within the same local jurisdiction, the licensee must first obtain a transition permit from the state licensing authority and, if required by the local jurisdiction, a transition permit or other form of approval from the local licensing authority or local jurisdiction.  If the change of location is to a different local jurisdiction, the licensee must first obtain a license from the local licensing authority or local jurisdiction where it intends to locate, a transition permit from the state licensing authority, and, if required by the local jurisdiction, a transition permit or other form of approval from the local licensing authority or local jurisdiction for the local jurisdiction where it intends to locate.

               (ii)  Conduct at either location may be the basis for fine, suspension, revocation, or other sanction against the license.

     312.  License renewal.  (1)  Ninety (90) days prior to the expiration date of an existing retail marijuana business license, the state licensing authority shall notify the licensee of the expiration date by first-class mail at the licensee's address of record with the state licensing authority.  A licensee must apply for the renewal of an existing license to the local licensing authority within the time frame required by local ordinance or regulation and to the state licensing authority prior to the expiration of the license.  The licensee shall provide the state licensing authority with information establishing that the application complies with all local requirements for the renewal of a license.  If a licensee submits a timely and sufficient renewal application, the licensee may continue to operate until the application is finally acted upon by the state licensing authority.  The local licensing authority may refuse to renew any license for good cause, subject to judicial review.

     (2)  The state licensing authority may require an additional fingerprint request when there is a demonstrated investigative need.

     313.  Inactive licenses.  The state or local licensing authority, in its discretion, may revoke or elect not to renew any license if it determines that the licensed premises have been inactive, without good cause, for at least one (1) year.

     314.  Unlawful financial assistance.  (1)  The state licensing authority, by rule, shall require a complete disclosure pursuant to Section 307 in connection with each license issued under this chapter.

     (2)  This section is intended to prohibit and prevent the control of the outlets for the sale of regulated marijuana and regulated marijuana products by a person or party other than the persons licensed pursuant to the provisions of this chapter.

                                                                   ARTICLE 4

                         LICENSE TYPES

     401.  Classes of licenses.  (1)  For the purpose of regulating the cultivation, manufacture, distribution, hospitality, and sale of regulated marijuana and regulated marijuana products, the state licensing authority in its discretion, upon application in the prescribed form made to it, may issue and grant to the applicant a license from any of the classes listed in subsections (2) and (3) of this section, subject to the provisions and restrictions provided by this chapter.

     (2)  The following are retail marijuana licenses:

          (a)  Retail marijuana store license;

          (b)  Retail marijuana cultivation facility license;

          (c)  Retail marijuana products manufacturer license;

          (d)  Retail marijuana testing facility license;

          (e)  Retail marijuana transporter license;

          (f)  Retail marijuana business operator license;

          (g)  Accelerator cultivator license;

          (h)  Accelerator manufacturer license;

          (i)  Marijuana hospitality business license;

          (j)  Retail marijuana hospitality and sales business license; and

          (k)  Accelerator store license.

     (3)  The following are regulated marijuana licenses or registrations:  Occupational licenses and registrations for owners, managers, operators, employees, contractors, and other support staff employed by, working in, or having access to restricted areas of the licensed premises, as determined by the state licensing authority.  The state licensing authority may take any action with respect to a registration or permit pursuant to this chapter as it may with respect to a license pursuant to this chapter, in accordance with the procedures established pursuant to this chapter.

     (4)  All persons licensed pursuant to this chapter shall collect sales tax on all sales made pursuant to the licensing activities.

     (5)  A state chartered bank or a credit union may loan money to any person licensed pursuant to this chapter for the operation of a licensed retail marijuana business.

     (6)  For a person applying to be a social equity licensee, the state licensing authority shall not deny an application on the sole basis of the prior marijuana conviction of the applicant and at its discretion may waive other requirements.

                                                                   ARTICLE 5

                 RETAIL MARIJUANA LICENSE TYPES

     501.  Retail marijuana store license - rules - definitions.  (1)  (a)  A retail marijuana store license may be issued only to a person selling retail marijuana or retail marijuana products pursuant to the terms and conditions of this chapter.

          (b)  A retail marijuana store may cultivate its own retail marijuana if it obtains a retail marijuana cultivation facility license, or it may purchase retail marijuana from a licensed retail marijuana cultivation facility.

          (c)  A retail marijuana store shall not accept any retail marijuana purchased from a retail marijuana cultivation facility unless the retail marijuana store is provided with evidence that any applicable excise tax due was paid.

          (d)  The retail marijuana store shall track all of its retail marijuana and retail marijuana products from the point that they are transferred from a retail marijuana cultivation facility or retail marijuana products manufacturer to the point of sale.

     (2)  (a)  Notwithstanding the provisions of this section, a retail marijuana store licensee may also sell retail marijuana products that are prepackaged and labeled as required by rules of the state licensing authority pursuant to Section 203(2)(f) and (3)(b).

          (b)  A retail marijuana store licensee may transact with a retail marijuana products manufacturer licensee for the purchase of retail marijuana products upon a retail marijuana products manufacturer licensee's licensed premises or a retail marijuana store's licensed premises.

          (c)  A retail marijuana store may sell retail marijuana and retail marijuana products to a retail marijuana hospitality and sales business licensee.

     (3)  (a)  (i)  A retail marijuana store may not sell more than one (1) ounce of retail marijuana or its equivalent in retail marijuana products, including retail marijuana concentrate, except for nonedible, nonpsychoactive retail marijuana products, including ointments, lotions, balms, and other nontransdermal topical products, during a single transaction to a person.

               (ii)  As used in this paragraph (a), "equivalent in retail marijuana products" has the same meaning as established by the state licensing authority by rule pursuant to Section 203(4).

          (b)  (i)  Prior to initiating a sale, the employee of the retail marijuana store making the sale shall verify that the purchaser has a valid identification card showing the purchaser is twenty-one (21) years of age or older.  If a person under twenty-one (21) years of age presents a fraudulent proof of age, any action relying on the fraudulent proof of age shall not be grounds for the revocation or suspension of any license issued under this chapter.

               (ii)  1.  If a retail marijuana store licensee or employee has reasonable cause to believe that a person is under twenty-one (21) years of age and is exhibiting fraudulent proof of age in an attempt to obtain any retail marijuana or marijuana product, the licensee or employee is authorized to confiscate such fraudulent proof of age, if possible, and shall, within seventy-two (72) hours after the confiscation, remit to a state or local law enforcement agency.  The failure to confiscate such fraudulent proof of age or to remit to a state or local law enforcement agency within seventy-two (72) hours after the confiscation does not constitute a criminal offense.

                    2.  If a retail marijuana store licensee or employee believes that a person is under twenty-one (21) years of age and is exhibiting fraudulent proof of age in an attempt to obtain any retail marijuana or retail marijuana product, the licensee or employee or any peace or police officer, acting in good faith and upon probable cause based upon reasonable grounds therefor, may detain and question such person in a reasonable manner for the purpose of ascertaining whether the person is guilty of any unlawful act regarding the purchase of retail marijuana.  The questioning of a person by an employee or a peace or police officer does not render the licensee, the employee, or the peace or police officer civilly or criminally liable for slander, false arrest, false imprisonment, malicious prosecution, or unlawful detention.

          (c)  (i)  A retail marijuana store that sells an industrial hemp product shall ensure that the industrial hemp product has passed all testing required by rules promulgated by the state licensing authority pursuant to Section 203(2)(d).  Prior to taking possession of the industrial hemp product, a retail marijuana store shall verify the industrial hemp product passed all testing required for retail marijuana products at a licensed retail marijuana testing facility and that the person transferring the industrial hemp product has received a license from the Department of Agriculture and Commerce pursuant to Section 69-25-207.

               2.  Absent sampling and testing standards established by the Department of Agriculture and Commerce for the sampling and testing of an industrial hemp product, a person transferring an industrial hemp product to a retail marijuana store pursuant to this section shall comply with sampling and testing standards consistent with those established by the state licensing authority pursuant to this chapter.

          (d)  When completing a sale of retail marijuana concentrate, the retail marijuana store shall provide the customer with the tangible educational resource created by the state licensing authority through rule-making pursuant to Section 202(8) regarding the use of retail marijuana concentrate.

     (4)  A retail marijuana store may provide, except as required by Section 203(2)(d), a sample of its products to a facility that has a marijuana testing facility license from the state licensing authority for testing and research purposes.  A retail marijuana store shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.

     (5)  All retail marijuana and retail marijuana products sold at a licensed retail marijuana store shall be packaged and labeled as required by rules of the state licensing authority pursuant to Section 203(2)(f) and (3)(b).

     (6)  (a)  A licensed retail marijuana store may only sell retail marijuana, retail marijuana products, marijuana accessories, nonconsumable products such as apparel, and marijuana related products such as childproof packaging containers, but is prohibited from selling or giving away any consumable product, including but not limited to cigarettes or alcohol, or edible product that does not contain marijuana, including but not limited to sodas, candies, or baked goods; except that a retail marijuana store may sell industrial hemp products.

          (b)  A licensed retail marijuana store may not sell any retail marijuana or retail marijuana products that contain nicotine or alcohol, if the sale of the alcohol would require a license pursuant to Chapter 1 or 3 of Title 67, Mississippi Code of 1972.

          (c)  A licensed retail marijuana store shall not sell retail marijuana or retail marijuana products over the internet nor deliver retail marijuana or retail marijuana products to a person not physically present in the retail marijuana store's licensed premises.

     (7)  The premises of a licensed retail marijuana store is the only place where an automatic dispensing machine that contains retail marijuana or retail marijuana products may be located.  If a licensed retail marijuana store uses an automatic dispensing machine that contains retail marijuana and retail marijuana products, it must comply with the regulations promulgated by the state licensing authority for its use.

     (8)  Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana store.

     (9)  Notwithstanding any other provision of state law, sales of retail marijuana and retail marijuana products are not exempt from state or local sales tax.

     (10)  A display case containing marijuana concentrate must include the potency of the marijuana concentrate next to the name of the product.

     (11)  Notwithstanding any other provision of law to the contrary, a licensed retail marijuana store may compensate its employees using performance-based incentives, including sales-based performance-based incentives.

     (12)  (a)  (i)  There is authorized a retail marijuana delivery permit to a retail marijuana store license authorizing the permit holder to deliver retail marijuana and retail marijuana products.

               (ii)  A retail marijuana delivery permit is valid for one (1) year and may be renewed annually upon renewal of the retail marijuana store license or retail marijuana transporter license.

               (iii)  A retail marijuana delivery permit issued pursuant to this section applies to only one (1) retail marijuana store; however, a single retail marijuana delivery permit may apply to multiple retail marijuana stores if the retail marijuana stores are in the same local jurisdiction and are identically owned, as defined by the state licensing authority for purposes of this section.

               (iv)  The state licensing authority may issue a retail marijuana delivery permit to a qualified applicant, as determined by the state licensing authority, that holds a retail marijuana store license issued pursuant to this chapter.  A permit applicant is prohibited from delivering retail marijuana and retail marijuana products without state and local jurisdiction approval.  If the applicant does not receive local jurisdiction approval within one (1) year from the date of the state licensing authority approval, the state permit expires and may not be renewed.  If an application is denied by the local licensing authority, the state licensing authority shall revoke the state-issued permit.  The state licensing authority has discretion in determining whether an applicant is qualified to receive a retail marijuana delivery permit.  A retail marijuana delivery permit issued by the state licensing authority is deemed a revocable privilege of a licensed retail marijuana store or retail marijuana transporter licensee.  A violation related to a retail marijuana delivery permit is grounds for a fine or suspension or revocation of the delivery permit or retail marijuana store license.

          (b)  A retail marijuana store licensee shall not make deliveries of retail marijuana or retail marijuana products to individuals while also transporting retail marijuana or retail marijuana products between licensed premises in the same vehicle.

          (c)  The licensed retail marijuana store shall charge a One Dollar ($1.00) surcharge on each delivery.  The licensed retail marijuana store shall remit the surcharges collected on a monthly basis to the municipality where the licensed retail marijuana store is located, or to the county if the licensed retail marijuana store is in an unincorporated area, for local law enforcement costs related to marijuana enforcement.  Failure to comply with this paragraph (c) may result in nonrenewal of the retail marijuana delivery permit.

          (d)  A licensed retail marijuana store with a retail marijuana delivery permit may deliver retail marijuana and retail marijuana products only to the individual who placed the order and who:

               (i)  Is twenty-one (21) years of age or older;

               (ii)  Receives the delivery of retail marijuana or retail marijuana products pursuant to rules; and

               (iii)  Possesses an acceptable form of identification.

          (e)  Any person delivering retail marijuana or retail marijuana products must possess a valid occupational license and be a current employee of the licensed retail marijuana store or retail marijuana transporter licensee with a valid retail marijuana delivery permit; must have undergone training regarding proof-of-age identification and verification, including all forms of identification that are deemed acceptable by the state licensing authority; and must have any other training required by the state licensing authority.

          (f)  In accordance with this subsection (12) and rules adopted to implement this subsection (12), a licensed retail marijuana store with a valid retail marijuana delivery permit may:

               (i)  Receive an order through electronic or other means for the purchase and delivery of retail marijuana or retail marijuana products. When using an online platform for marijuana delivery, the platform must require the individual to choose a retail marijuana store before viewing the price.

               (ii)  Deliver retail marijuana or retail marijuana products not in excess of the amounts established by the state licensing authority;

               (iii)  Deliver only to an individual at the address provided in the order;

               (iv)  Deliver no more than once per day to the same individual or residence;

               (v)  Deliver only to private residences.  For purposes of this subparagraph (v), "private residences" means private premises where a person lives, such as a private dwelling place or place of habitation, and specifically excludes any premises located at a school or on the campus of an institution of higher education, or any other public property.

               (vi)  Deliver retail marijuana or retail marijuana products only by a motor vehicle that complies with this section and the rules promulgated pursuant to this section and Section 203(2)(dd); and

               (vii)  Use an employee to conduct deliveries, or contract with a retail marijuana transporter that has a valid retail marijuana delivery permit to conduct deliveries on its behalf, from its retail marijuana store or its associated state licensing authority-authorized storage facility as defined by rule.

          (g)  (i)  At the time of the order, the retail marijuana store shall require the individual to provide information necessary to verify the individual is at least twenty-one (21) years of age.  The provided information must, at a minimum, include the following:

                    1.  The individual's name and date of birth;

                    2.  The address of the residence where the order will be delivered; and

                    3.  Any other information required by state licensing authority rule.

               (ii)  Prior to transferring possession of the order to an individual, the person delivering the order shall inspect the individual's identification and verify that the information provided at the time of the order matches the name and age on the individual's identification.

          (h)  (i)  Unless otherwise provided by the state licensing authority by rules promulgated pursuant to this chapter, all requirements applicable to other licenses issued pursuant to this chapter apply to the delivery of retail marijuana and retail marijuana products, including but not limited to inventory tracking, transportation, and packaging and labeling requirements.

               (ii)  The advertising regulations and prohibitions adopted pursuant to Section 203(3)(a) apply to retail marijuana delivery operations pursuant to this subsection (12).

          (i)  It is not a violation of any provision of state, civil, or criminal law for a licensed retail marijuana store or retail marijuana transporter licensee with a valid retail marijuana delivery permit, or such person who has made timely and sufficient application for the renewal of the permit, or its licensees to possess, transport, and deliver retail marijuana or retail marijuana products pursuant to a retail marijuana delivery permit in amounts that do not exceed amounts established by the state licensing authority.

          (j)  A local law enforcement agency may request state licensing authority reports, including complaints, investigative action, and final agency action orders, related to criminal activity materially related to retail marijuana delivery in the law enforcement agency's jurisdiction, and the state licensing authority shall promptly provide any reports in its possession for the law enforcement agency's jurisdiction.

          (k)  (i)  Notwithstanding any provisions of this section, delivery of retail marijuana or retail marijuana products is not permitted in any municipality, county, or municipality and county unless the municipality, county, or municipality and county, by either a majority of the registered electors of the municipality, county, or municipality and county voting at a regular election or special election, or a majority of the members of the governing board for the municipality, county, or municipality and county, vote to allow the delivery of retail marijuana or retail marijuana products pursuant to this section.

               (ii)  An ordinance adopted pursuant to subparagraph (i) of this paragraph (k) may prohibit delivery of retail marijuana and retail marijuana products from a retail marijuana store that is outside a municipality's, county's, or municipality and county's jurisdictional boundaries to an address within its jurisdictional boundaries.

          (l)  Notwithstanding any provisions of this section, delivery of retail marijuana or retail marijuana products is not permitted at any school or on the campus of any institution of higher education.

     (13)  An accelerator store licensee may operate on the premises of a retail marijuana store licensee if before each accelerator store licensee operates, the retail marijuana store licensee has its premises endorsed pursuant to rule and each accelerator store licensee is approved to operate on that premises.

     (14)  A retail marijuana store licensee that hosts an accelerator store licensee may, pursuant to rule, provide technical and compliance assistance to an accelerator store licensee operating on its premises.  A retail marijuana store licensee that hosts an accelerator store licensee may, pursuant to rule, provide capital assistance to an accelerator store licensee operating on its premises.

     (15)  A retail marijuana store or retail marijuana stores shall not sell any more than eight (8) grams of retail marijuana concentrate to a person in a single day.

     502.  Retail marijuana cultivation facility license - rules - definitions. (1)  A retail marijuana cultivation facility license may be issued only to a person who cultivates retail marijuana for sale and distribution to licensed retail marijuana stores, retail marijuana products manufacturer licensees, retail marijuana hospitality and sales business, or other retail marijuana cultivation facilities.

     (2)  A retail marijuana cultivation facility shall remit any applicable excise tax due, based on the average wholesale prices set by the state licensing authority.

     (3)  A retail marijuana cultivation facility shall track the marijuana it cultivates from seed or immature plant to wholesale purchase.  Prior to delivery of any sold retail marijuana, the retail marijuana cultivation facility shall provide evidence that it paid any applicable excise tax on the retail marijuana that is due.

     (4)  A retail marijuana cultivation facility may provide, except as required by Section 203(2)(d), a sample of its products to a facility that has a retail marijuana testing facility license from the state licensing authority for testing and research purposes.  A retail marijuana cultivation facility shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the testing results.

     (5)  Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana cultivation facility.

     (6)  (a)  A retail marijuana cultivation facility licensee may provide a retail marijuana sample and a retail marijuana concentrate sample to no more than five (5) managers employed by the licensee for purposes of quality control and product development.  A retail marijuana cultivation facility licensee may designate no more than five (5) managers per calendar month as recipients of quality control and product development samples authorized pursuant to this paragraph (a).

          (b)  An excise tax shall be levied and collected on the sample of unprocessed retail marijuana by a retail marijuana cultivation facility.  The excise tax must be calculated based on the average market rate of the unprocessed retail marijuana.

          (c)  A sample authorized pursuant to paragraph (a) of this subsection (6) is limited to one (1) gram of retail marijuana per batch as defined in rules promulgated by the state licensing authority, and one-quarter (1/4) gram of a retail marijuana concentrate per batch as defined in rules promulgated by the state licensing authority; however, the limit is one-half (1/2) gram of retail marijuana concentrate if the intended use of the final product is to be used in a device that can be used to deliver retail marijuana concentrate in a vaporized form to the person inhaling from the device.

          (d)  A sample authorized pursuant to paragraph (a) of this subsection (6) must be labeled and packaged pursuant to the rules promulgated pursuant to Section 203(2)(f) and (3)(b).

          (e)  A sample provided pursuant to paragraph (a) of this subsection (6) must be tracked with the seed-to-sale tracking system. Prior to a manager receiving a sample, a manager must be designated in the seed-to-sale tracking system as a recipient of quality control and product development samples.  A manager receiving a sample must make a voluntary decision to be tracked in the seed-to-sale tracking system and is not a consumer pursuant to Section 1(6)(b) of this act.  The retail marijuana cultivation facility licensee shall maintain documentation of all samples and shall make the documentation available to the state licensing authority.

          (f)  Prior to a manager receiving a sample pursuant to paragraph (a) of this subsection (6), a retail marijuana cultivation facility licensee shall provide a standard operating procedure to the manager explaining requirements pursuant to this section and personal possession limits.

          (g)  A manager shall not:

               (i)  Receive more than one (1) ounce total of retail marijuana or eight (8) grams of retail marijuana concentrate samples per calendar month, regardless of the number of licenses that the manager is associated with; or

               (ii)  Provide to or resell the sample to another licensed employee, a customer, or any other individual.

          (h)  A retail marijuana cultivation facility licensee shall not:

               (i)  Allow a manager to consume the sample on the licensed premises; or

               (ii)  Use the sample as a means of compensation to a manager.

          (i)  The state licensing authority may establish additional inventory tracking and record keeping, including additional reporting required for implementation.  The retail marijuana cultivation facility licensee shall maintain the information required by this subsection (i) on the licensed premises for inspection by the state and local licensing authorities.

          (j)  For purposes of this subsection (6) only, "manager" means an employee of the retail marijuana cultivation facility who holds a valid key license or associated key license and is currently designated pursuant to state licensing authority rules as the manager of the retail marijuana cultivation facility.

     (7)  (a)  The state licensing authority may issue a centralized distribution permit to a retail marijuana cultivation facility authorizing temporary storage on its licensed premises of retail marijuana concentrate and retail marijuana products received from a retail marijuana business for the sole purpose of transfer to the permit holder's commonly owned retail marijuana stores.  Prior to exercising the privileges of a centralized distribution permit, a retail marijuana cultivation facility licensed pursuant to this section shall, at the time of application to the state licensing authority, send a copy of the application or supplemental application for a centralized distribution permit to the local jurisdiction in which the centralized distribution permit is proposed.  The state licensing authority shall notify the local jurisdiction of its decision regarding the centralized distribution permit.

          (b)  A retail marijuana cultivation facility shall not store retail marijuana concentrate or retail marijuana products pursuant to a centralized distribution permit for more than ninety (90) days.

          (c)  A retail marijuana cultivation facility shall not accept any retail marijuana concentrate or retail marijuana products pursuant to a centralized distribution permit unless the retail marijuana concentrate and retail marijuana products are packaged and labeled for sale to a consumer as required by rules promulgated by the state licensing authority pursuant to Section 203(2)(f) and (3)(b).

          (d)  All retail marijuana concentrate and retail marijuana products stored and prepared for transport on a retail marijuana cultivation facility's licensed premises pursuant to a centralized distribution permit must only be transferred to a retail marijuana cultivation facility licensee's commonly owned retail marijuana stores.  All transfers of retail marijuana concentrate and retail marijuana products by a retail marijuana cultivation facility pursuant to a centralized distribution permit are without consideration.

          (e)  All security and surveillance requirements that apply to a retail marijuana cultivation facility apply to activities conducted pursuant to the privileges of a centralized distribution permit.

          (f)  A retail marijuana cultivation facility shall track all retail marijuana concentrate and retail marijuana products possessed pursuant to a centralized distribution permit in the seed-to-sale tracking system from the point it is received from a retail marijuana business to the point of transfer to a retail marijuana cultivation facility licensee's commonly owned retail marijuana stores.

          (g)  For purposes of this section only, "commonly owned" means licenses that have an ownership structure with at least one (1) natural person with a minimum of five percent (5%) ownership in each license.

     (8)  Notwithstanding any other provision of law to the contrary, a licensed retail marijuana cultivation facility may compensate its employees using performance-based incentives, including sales-based performance-based incentives.

     (9)  An accelerator cultivator licensee may operate on the premises of a retail marijuana cultivation facility licensee if before each accelerator cultivator licensee operates, the retail marijuana cultivation facility licensee has its premises endorsed pursuant to rule and each accelerator cultivator licensee is approved to operate on that premises.

     (10)  A retail marijuana cultivation facility licensee that hosts an accelerator cultivator licensee may, pursuant to rule, provide technical and compliance assistance to an accelerator cultivator licensee operating on its premises.  A retail marijuana products manufacturer licensee that hosts an accelerator cultivator licensee may, pursuant to rule, provide capital assistance to an accelerator cultivator licensee operating on its premises.

     (11)  A retail marijuana cultivation facility shall only obtain retail marijuana seeds or immature plants from its own retail marijuana, or marijuana that is properly transferred from another retail marijuana business pursuant to the inventory tracking requirements imposed by rule.

     (12)  (a)  A retail marijuana cultivation facility licensee that cultivates retail marijuana outdoors may file a contingency plan for its outdoor cultivation operation to address how the licensee will respond when there is an adverse weather event.  If the licensee files a contingency plan, the licensee shall also submit a copy of the plan to the local licensing authority in the local jurisdiction where the licensee operates.  If the contingency plan is approved by the state licensing authority, the retail marijuana cultivation facility licensee may follow the contingency plan in the case of an adverse weather event.

          (b)  After the state licensing authority approves a contingency plan, it shall notify the local licensing authority of the approval.  The local licensing authority may enforce local land use and zoning laws and regulations regarding the contingency plan and may develop internal regulatory processes to evaluate contingency plans.

          (c)  A local licensing authority may require that an applicant for a retail marijuana cultivation facility license include a contingency plan with the application for the local licensing authority's review and approval.

     503.  Retail marijuana products manufacturer license - rules - definition.  (1)  (a)  A retail marijuana products manufacturer license may be issued to a person who manufactures retail marijuana products pursuant to the terms and conditions of this chapter.

          (b)  A retail marijuana products manufacturer may cultivate its own retail marijuana if it obtains a retail marijuana cultivation facility license, or it may purchase retail marijuana from a licensed retail marijuana cultivation facility.  A retail marijuana products manufacturer shall track all of its retail marijuana from the point it is either transferred from its retail marijuana cultivation facility or the point when it is delivered to the retail marijuana products manufacturer from a licensed retail marijuana cultivation facility to the point of transfer to a licensed retail marijuana store, a licensed retail marijuana products manufacturer, a retail marijuana testing facility, or a licensed retail marijuana cultivation facility with a centralized distribution permit pursuant to Section 502(7).

          (c)  A retail marijuana products manufacturer shall not accept any retail marijuana purchased from a retail marijuana cultivation facility unless the retail marijuana products manufacturer is provided with evidence that any applicable excise tax due was paid.

          (d)  A retail marijuana products manufacturer shall not:

               (i)  Add any marijuana to a food product where the manufacturer of the food product holds a trademark to the food product's name; except that a retail marijuana products manufacturer may use a trademarked food product if the manufacturer uses the product as a component or as part of a recipe and where the retail marijuana products manufacturer does not state or advertise to the consumer that the final retail marijuana product contains a trademarked food product;

               (ii)  Intentionally or knowingly label or package a retail marijuana product in a manner that would cause a reasonable consumer confusion as to whether the retail marijuana product was a trademarked food product; or

               (iii)  Label or package a product in a manner that violates any federal trademark law or regulation.

          (e)  A retail marijuana products manufacturer may sell retail marijuana and retail marijuana products to a retail marijuana hospitality and sales business.

     (2)  Retail marijuana products must be prepared on a licensed premises that is used exclusively for the manufacture and preparation of retail marijuana or retail marijuana products and using equipment that is used exclusively for the manufacture and preparation of retail marijuana products; however, if permitted by the local jurisdiction and subject to rules of the state licensing authority, a retail marijuana products manufacturer licensee may share the same premises as:

          (a)  A commonly owned marijuana research and development licensee so long as virtual or physical separation of inventory and research activity is maintained; or

          (b)  An accelerator manufacturer licensee if the retail marijuana products manufacturer has its premises endorsed pursuant to rule before each accelerator manufacturer licensee operates and each accelerator manufacturer licensee is approved to operate on that premises.

     (3)  All licensed premises on which retail marijuana products are manufactured must meet the sanitary standards for retail marijuana product preparation promulgated pursuant to Section 203(2)(i).

     (4)  (a)  The retail marijuana product must be sealed and conspicuously labeled in compliance with this chapter and any rules promulgated pursuant to this chapter.  The labeling of retail marijuana products is a matter of statewide concern.

          (b)  The standard symbol requirements as promulgated pursuant to Section 203(2)(y) do not apply to a multi-serving liquid retail marijuana product, which is impracticable to mark, if the product complies with all statutory and rule packaging requirements for multi-serving edibles and complies with the following enhanced requirements to reduce the risk of accidental ingestion.  A multi-serving liquid must:

               (i)  Be packaged in a structure that uses a single mechanism to achieve both child-resistance and accurate pouring measurement of each liquid serving in increments equal to or less than ten (10) milligrams of active THC per serving, with no more than one hundred (100) milligrams of active THC total per package; and

               (ii)  The measurement component is within the child-resistant cap or closure of the bottle and is not a separate component.

     (5)  Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana products manufacturer.

     (6)  A retail marijuana products manufacturer may provide, except as required by Section 203(2)(d), a sample of its products to a facility that has a retail marijuana testing facility license from the state licensing authority for testing and research purposes.  A retail marijuana products manufacturer shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.

     (7)  An edible retail marijuana product may list its ingredients and compatibility with dietary practices.

     (8)  A licensed retail marijuana products manufacturer shall package and label each product manufactured as required by rules of the state licensing authority pursuant to Section 203(2)(f) and (3)(b).

     (9)  All retail marijuana products that require refrigeration to prevent spoilage must be stored and transported in a refrigerated environment.

     (10)  (a)  A retail marijuana products manufacturer licensee may provide a retail marijuana product sample and a retail marijuana concentrate sample to no more than five (5) managers employed by the licensee for purposes of quality control and product development.  A retail marijuana products manufacturer licensee may designate no more than five (5) managers per calendar month as recipients of quality control and product development samples authorized pursuant to this paragraph (a).

          (b)  A sample authorized pursuant to paragraph (a) of this subsection (10) is limited to one (1) serving size of an edible retail marijuana product not exceeding ten (10) milligrams of THC and its applicable equivalent serving size of nonedible retail marijuana product per batch as defined in rules promulgated by the state licensing authority and one-quarter (1/4) gram of retail marijuana concentrate per batch as defined in rules promulgated by the state licensing authority; however, the limit is one-half (1/2) gram of retail marijuana concentrate if the intended use of the final product is to be used in a device that can be used to deliver retail marijuana concentrate in a vaporized form to the person inhaling from the device.

          (c)  A sample authorized pursuant to paragraph (a) of this subsection (10) must be labeled and packaged pursuant to the rules promulgated pursuant to Section 203(2)(f) and (3)(b).

          (d)  A sample provided pursuant to paragraph (a) of this subsection (10) must be tracked with the seed-to-sale tracking system. Prior to a manager receiving a sample, a manager must be designated in the seed-to-sale tracking system as a recipient of quality control and product development samples.  A manager receiving a sample must make a voluntary decision to be tracked in the seed-to-sale tracking system and is not a consumer pursuant to Section 1(6)(b) of this act.  The retail marijuana products manufacturer licensee shall maintain documentation of all samples and shall make the documentation available to the state licensing authority.

          (e)  Prior to a manager receiving a sample pursuant to paragraph (a) of this subsection (10), a retail marijuana products manufacturer licensee shall provide a standard operating procedure to the manager explaining requirements pursuant to this section and personal possession limits.

          (f)  A manager shall not:

               (i)  Receive more than a total of eight (8) grams of retail marijuana concentrate or fourteen (14) individual serving-size edibles or its applicable equivalent in nonedible retail marijuana products per calendar month, regardless of the number of licenses that the manager is associated with; or

               (ii)  Provide to or resell the sample to another licensed employee, a customer, or any other individual.

          (g)  A retail marijuana products manufacturing licensee shall not:

               (i)  Allow a manager to consume the sample on the licensed premises; or

               (ii)  Use the sample as a means of compensation to a manager.

          (h)  The state licensing authority may establish additional inventory tracking and record keeping, including additional reporting required for implementation.  The retail marijuana products manufacturer licensee shall maintain the information required by this paragraph (h) on the licensed premises for inspection by the state and local licensing authorities.

          (i)  For purposes of this subsection (10) only, "manager" means an employee of the retail marijuana products manufacturer who holds a valid key license or associated key license and is currently designated pursuant to state licensing authority rules as the manager of the retail marijuana products manufacturer.

     (11)  (a)  A retail marijuana products manufacturer that uses an industrial hemp product as an ingredient in a retail marijuana product shall ensure that the industrial hemp product has passed all testing required by rules promulgated by the state licensing authority pursuant to Section (2)(d).  Prior to taking possession of the industrial hemp product, a retail marijuana products manufacturer shall verify that the industrial hemp product passed all testing required for retail marijuana products at a licensed retail marijuana testing facility and that the person transferring the industrial hemp product has received a license from the Department of Agriculture and Commerce pursuant to Section 69-25-207.

          (b)  Absent sampling and testing standards established by the Department of Agriculture and Commerce for the sampling and testing of an industrial hemp product, a person transferring industrial hemp product to a retail marijuana products manufacturer pursuant to this section shall comply with sampling and testing standards consistent with those established by the state licensing authority pursuant to this chapter.  The state licensing authority shall report to the Department of Agriculture and Commerce any investigations or findings in violation of this section by a person licensed pursuant to Section 69-25-207.

     (12)  Notwithstanding any other provision of law to the contrary, a licensed retail marijuana products manufacturer may compensate its employees using performance-based incentives, including sales-based performance-based incentives.

     (13)  A retail marijuana products manufacturer licensee that hosts an accelerator manufacturer licensee may, pursuant to rule, provide technical and compliance assistance to an accelerator manufacturer licensee operating on its premises.  A retail marijuana products manufacturer licensee that hosts an accelerator manufacturer licensee may, pursuant to rule, provide capital assistance to an accelerator manufacturer licensee operating on its premises.

     504.  Retail marijuana testing facility license - rules.  (1)  (a)  A retail marijuana testing facility license may be issued to a person who performs testing and research on retail marijuana and industrial hemp and industrial hemp products.  The facility may develop and test retail marijuana products, industrial hemp and industrial hemp products.  Prior to performing testing on industrial hemp products, a facility shall verify that the person requesting the testing has received a license as required by Section 69-25-207.

          (b)  The testing of retail marijuana, retail marijuana products, and retail marijuana concentrate, and the associated standards, is a matter of statewide concern.

     (2)  The state licensing authority shall promulgate rules pursuant to its authority in Section 202(1)(c) related to acceptable testing and research practices, including but not limited to testing, standards, quality control analysis, equipment certification and calibration, and chemical identification and other substances used in bona fide research methods.

     505.  Retail marijuana transporter license - definition.  (1)  (a)  A retail marijuana transporter license may be issued to a person to provide logistics, distribution, delivery, and storage of retail marijuana and retail marijuana products.  Notwithstanding any other provisions of law, a retail marijuana transporter license is valid for two (2) years but cannot be transferred with a change of ownership.  A licensed retail marijuana transporter is responsible for the retail marijuana and retail marijuana products once it takes control of the product.

          (b)  A licensed retail marijuana transporter may contract with multiple licensed retail marijuana businesses.

          (c)  All retail marijuana transporters shall hold a valid retail marijuana transporter license; however, an entity licensed pursuant to this chapter that provides its own distribution is not required to have a retail marijuana transporter license to transport and distribute its products.

     (2)  A retail marijuana transporter licensee may maintain a licensed premises to temporarily store retail marijuana and retail marijuana products and to use as a centralized distribution point.  The licensed premises must be located in a jurisdiction that permits the operation of retail marijuana stores.  A licensed retail marijuana transporter may store and distribute retail marijuana and retail marijuana products from this location.  A storage facility must meet the same security requirements that are required to obtain a retail marijuana cultivation facility license.

     (3)  A retail marijuana transporter licensee shall use the seed-to-sale tracking system developed pursuant to Section 202(1)(a) to create shipping manifests documenting the transport of retail marijuana and retail marijuana products throughout the state.

     (4)  A retail marijuana transporter licensee may:

          (a)  Maintain and operate one (1) or more warehouses in the state to handle retail marijuana and retail marijuana products; and

          (b)  Deliver retail marijuana products on orders previously taken if the place where orders are taken and delivered is licensed.

     (5)  (a)  (i)  There is authorized a retail marijuana delivery permit to a retail marijuana transporter license authorizing the permit holder to deliver retail marijuana and retail marijuana products.

               (ii)  A retail marijuana delivery permit is valid for one (1) year and may be renewed annually upon renewal of the retail marijuana transporter license.

               (iii)  A retail marijuana delivery permit issued pursuant to this section applies to only one (1) retail marijuana transporter; however, a single retail marijuana delivery permit may apply to multiple retail marijuana transporters provided that the retail marijuana transporters are in the same local jurisdiction and are identically owned, as defined by the state licensing authority for purposes of this section.

               (iv)  The state licensing authority may issue a retail marijuana delivery permit to a qualified applicant, as determined by the state licensing authority, that holds a retail marijuana transporter license issued pursuant to this chapter.  A permit applicant is prohibited from delivering retail marijuana and retail marijuana products without state and local jurisdiction approval.  If the applicant does not receive local jurisdiction approval within one (1) year from the date of the state licensing authority approval, the state permit expires and may not be renewed.  If an application is denied by the local licensing authority, the state licensing authority shall revoke the state-issued permit.  The state licensing authority has discretion in determining whether an applicant is qualified to receive a retail marijuana delivery permit.  A retail marijuana delivery permit issued by the state licensing authority is deemed a revocable privilege of a licensed retail marijuana transporter.  A violation related to a retail marijuana delivery permit is grounds for a fine or suspension or revocation of the delivery permit or retail marijuana transporter license.

          (b)  A retail marijuana transporter licensee shall not make deliveries of retail marijuana or retail marijuana products to individuals while also transporting retail marijuana or retail marijuana products between licensed premises in the same vehicle.

          (c)  A licensed retail marijuana transporter with a retail marijuana delivery permit may deliver retail marijuana and retail marijuana products on behalf of a retail marijuana store only to the individual who placed the order with a retail marijuana store and who:

               (i)  Is twenty-one (21) years of age or older;

               (ii)  Receives the delivery of retail marijuana or retail marijuana products pursuant to rules; and

               (iii)  Possesses an acceptable form of identification.

          (d)  In accordance with this subsection (5) and rules adopted to implement this subsection (5), a licensed retail marijuana transporter with a valid retail marijuana delivery permit may:

               (i)  Not accept orders on behalf of a retail marijuana store and may only pick up already packaged retail marijuana delivery orders from a retail marijuana store or its associated state licensing authority-authorized storage facility as defined by rule and deliver those orders to the appropriate individual;

               (ii)  Deliver retail marijuana and retail marijuana products not in excess of the amounts established by the state licensing authority;

               (iii)  Deliver only to an individual at the address provided in the order;

               (iv)  Deliver no more than once per day to the same individual or residence;

               (v)  Deliver only to a private residence.  For purposes of this subparagraph (v), "private residences" means private premises where a person lives, such as a private dwelling place or place of habitation, and specifically excludes any premises located at a school or on the campus of an institution of higher education, or any other public property.

               (vi)  Deliver retail marijuana or retail marijuana products only by a motor vehicle that complies with this section and the rules promulgated pursuant to this section and Section 203(2)(dd); and

               (vii)  Use an employee to conduct deliveries on behalf of, and pursuant to a contract with, a retail marijuana store that has a valid retail marijuana delivery permit from its retail marijuana store or its associated state licensing authority-authorized storage facility as defined by rule.

          (e)  Prior to transferring possession of the order to an individual, the person delivering the order shall inspect the individual's identification and verify that the information provided at the time of the order matches the name and age on the individual's identification.

          (f)  Any person delivering retail marijuana or retail marijuana products for a retail marijuana transporter must possess a valid occupational license and be a current employee of the retail marijuana transporter licensee with a valid retail marijuana delivery permit; must have undergone training regarding proof-of-age identification and verification, including all forms of identification that are deemed acceptable by the state licensing authority; and must have any other training required by the state licensing authority.

          (g)  (i)  Unless otherwise provided by the state licensing authority by rules promulgated pursuant to this chapter, all requirements applicable to other licenses issued pursuant to this chapter apply to the delivery of retail marijuana and retail marijuana products, including but not limited to inventory tracking, transportation, and packaging and labeling requirements.

               (ii)  The advertising regulations and prohibitions adopted pursuant to Section 203(3)(a) apply to retail marijuana delivery operations pursuant to this subsection (5).

          (h)  It is not a violation of any provision of state, civil, or criminal law for a licensed retail marijuana transporter licensee with a valid retail marijuana delivery permit, or such person who has made timely and sufficient application for the renewal of the permit, or its licensees to possess, transport, and deliver retail marijuana and retail marijuana products pursuant to a retail marijuana delivery permit in amounts that do not exceed amounts established by the state licensing authority.

          (i)  (i)  Notwithstanding any provisions of this section, delivery of retail marijuana or retail marijuana products is not permitted in any municipality, county, or municipality and county unless the municipality, county, or municipality and county, by either a majority of the registered electors of the municipality, county, or municipality and county voting at a regular election or special election, or a majority of the members of the governing board for the municipality, county, or municipality and county, vote to allow the delivery of retail marijuana or retail marijuana products pursuant to this section.

               (ii)  An ordinance adopted pursuant to subparagraph (i) of paragraph (i) of this subsection may prohibit delivery of retail marijuana and retail marijuana products from a retail marijuana store that is outside a municipality's, county's, or municipality and county's jurisdictional boundaries to an address within its jurisdictional boundaries.

     506.  Retail marijuana business operator license. A retail marijuana business operator license may be issued to a person who operates a retail marijuana business licensed pursuant to this chapter, for an owner licensed pursuant to this chapter, and who may receive a portion of the profits as compensation.

     507.  Retail marijuana accelerator cultivator license.  A retail marijuana accelerator cultivator license may be issued to a social equity licensee to exercise the privileges of a retail marijuana cultivation facility licensee on the premises of an accelerator-endorsed retail marijuana cultivation facility. The retail marijuana accelerator cultivator may receive technical assistance and financial support from the retail marijuana cultivation facility licensee with an accelerator endorsement.

     508.  Retail marijuana accelerator manufacturer license.  A retail marijuana accelerator manufacturer license may be issued to a social equity licensee to exercise the privileges of a retail marijuana products manufacturer licensee on the premises of an accelerator-endorsed retail marijuana products manufacturer.  The retail marijuana accelerator manufacturer may receive technical assistance and financial support from the retail marijuana products manufacturer with an accelerator endorsement.

     509.  Marijuana hospitality business license.  (1)  (a)  The state licensing authority may issue a marijuana hospitality business license authorizing the licensee to operate a licensed premises in which marijuana may be consumed pursuant to this chapter, rules promulgated pursuant to this chapter, and the provisions of the ordinance or resolution of the local jurisdiction in which the licensee operates.

          (b)  Subject to provisions of this chapter and the ordinance or resolution of the local jurisdiction in which the licensee operates, a retail food business that has a license or permit issued by the department may apply for a license to operate a marijuana hospitality business in an isolated portion of the premises of the retail food business.  This paragraph (b) does not authorize the marijuana hospitality business to engage in the manufacture of retail marijuana products or to add marijuana to foods produced or provided at the retail food business.

          (c)  The state licensing authority shall maintain a list of all marijuana hospitality businesses in the state and shall make the list available on its website.

     (2)  A marijuana hospitality business shall not:

          (a)  Engage in or permit the sale or exchange for remuneration of retail marijuana or retail marijuana products in the licensed premises;

          (b)  Allow on-duty employees of the business to consume any marijuana in the licensed premises of the business;

          (c)  Distribute or allow distribution of free samples of marijuana in the licensed premises of the business;

          (d)  Allow the consumption of alcohol on the licensed premises;

          (e)  Allow the smoking of tobacco or tobacco products in the licensed premises of the business;

          (f)  Allow the use of any device using any liquid petroleum gas, a butane torch, a butane lighter, or matches in the licensed premises if prohibited by local ordinance or resolution;

          (g)  Allow any activity that would require an additional license under this chapter in the licensed premises of the business, including but not limited to sales, manufacturing, or cultivation;

          (h)  Knowingly permit any activity or acts of disorderly conduct;

          (i)  Permit the use or consumption of marijuana by a patron who displays any visible signs of intoxication;

          (j)  Permit rowdiness, undue noise, or other disturbances or activity offensive to the average citizen or to the residents of the neighborhood in which the licensed premises is located; or

          (k)  Admit into the licensed premises of the business any person who is under twenty-one (21) years of age.

     (3)  A marijuana hospitality business shall:

          (a)  Operate the business in a decent, orderly, and respectable manner;

          (b)  Require all employees of the business to successfully complete an annual responsible vendor training program authorized pursuant to Section 1001;

          (c)  Ensure that the display and consumption of any marijuana is not visible from outside of the licensed premises of the business;

          (d)  Educate consumers of marijuana by providing informational materials regarding the safe consumption of marijuana.  Nothing in this paragraph (d) prohibits a local jurisdiction from adopting additional requirements for education on safe consumption;

          (e)  Maintain a record of all educational materials required by paragraph (d) of this subsection (3) in the licensed premises for inspection by state and local licensing authorities and law enforcement; and

          (f)  If an emergency requires law enforcement, firefighters, emergency medical service providers, or other public safety personnel to enter a marijuana hospitality business, ensure that all employees and patrons of the business cease all consumption and other activities until such personnel have completed their investigation or services and have left the licensed premises.

          (4)  A marijuana hospitality business and its employees may remove an individual from the business for any reason, including a patron who displays any visible signs of intoxication.

     510.  Retail marijuana hospitality and sales business license.  (1)  (a)  The state licensing authority may issue a retail marijuana hospitality and sales business license authorizing the licensee to operate a licensed premises in which marijuana may be sold and consumed pursuant to this chapter, rules promulgated pursuant to this chapter, and the provisions of the ordinance or resolution of the local jurisdiction in which the licensee operates.

          (b)  Subject to provisions of this chapter and the ordinance or resolution of the local jurisdiction in which the licensee operates, a retail food business that has a license or permit issued by the department may apply for a license to operate a retail marijuana hospitality and sales business in an isolated portion of the premises of the retail food business.  This paragraph (b) does not authorize the retail marijuana hospitality and sales business to engage in the manufacture of retail marijuana products or to add marijuana to foods produced or provided at the retail food business.

          (c)  The state licensing authority shall maintain a list of all retail marijuana hospitality and sales businesses in the state and shall make the list available on its website.

     (2)  A retail marijuana hospitality and sales business licensee shall not:

          (a)  Engage in multiple sales transactions to the same patron during the same business day when the business's employee knows or reasonably should have known that the sales transaction would result in the patron possessing more than the sales limit established by the state licensing authority;

          (b)  Allow on-duty employees of the business to consume any marijuana in the licensed premises;

          (c)   Distribute or allow distribution of free samples of marijuana in the licensed premises of the business;

          (d)  Sell any retail marijuana or retail marijuana products that contain nicotine or, if the sale of alcohol would require a license or permit pursuant to Chapter 1 or 3 of Title 67, Mississippi Code of 1972;

          (e)  Allow the consumption of alcohol on the licensed premises;

          (f)  Allow the smoking of tobacco or tobacco products in the licensed premises of the business;

          (g)  Allow the use of any device using any liquid petroleum gas, a butane torch, a butane lighter, or matches in the licensed premises if prohibited by local ordinance or resolution;

          (h)  Allow any activity that would require an additional license under this chapter in the licensed premises of the business, including but not limited to manufacturing or cultivation activity;

          (i)  Knowingly permit any activity or acts of disorderly conduct;

          (j)  Sell, serve, or permit the sale or serving of retail marijuana or retail marijuana products to any patron who shows signs of visible intoxication;

          (k)  Permit rowdiness, undue noise, or other disturbances or activity offensive to the average citizen or to the residents of the neighborhood in which the licensed premises is located; or

          (l)  Admit into the licensed premises of a retail marijuana hospitality and sales business any person who is under twenty-one (21) years of age.

     (3)  A retail marijuana hospitality and sales business licensee shall:

          (a)  Track all of its retail marijuana and retail marijuana products from the point that they are transferred from a retail marijuana store, retail marijuana products manufacturer, or retail marijuana cultivation facility to the point of sale to its patrons;

          (b)  Limit a patron to one (1) transaction of no more than the sales limit set by the state licensing authority by rule pursuant to Section 203(2)(ff)(ii);

          (c)  Before allowing a patron to leave the licensed premises with any retail marijuana or retail marijuana products, package and label the retail marijuana or retail marijuana products in accordance with procedures developed by the business that comply with the requirements of Section 203(2)(f) and (3)(b);

          (d)  Operate the business in a decent, orderly, and respectable manner;

          (e)  Require all employees of the business to successfully complete an annual responsible vendor training program authorized pursuant to Section 1001;

          (f)  Ensure that the display and consumption of any retail marijuana or retail marijuana product is not visible from outside of the business;

          (g)  Educate consumers of marijuana by providing informational materials regarding the safe consumption of marijuana. Nothing in this paragraph (g) prohibits a local jurisdiction from adopting additional requirements for education on safe consumption.

          (h)  Maintain a record of all educational materials required by paragraph (g) of this subsection (3) in the licensed premises for inspection by state and local licensing authorities and law enforcement; and

          (i)  If an emergency requires law enforcement, firefighters, emergency medical service providers, or other public safety personnel to enter a retail marijuana hospitality and sales business, ensure that all employees and patrons of the business cease all sales, consumption, and other activities until such personnel have completed their investigation or services and have left the licensed premises.

     (4)  A retail marijuana hospitality and sales business and its employees may remove an individual from the business for any reason, including a patron who displays any visible signs of intoxication.

     (5)  A retail marijuana hospitality and sales business may purchase retail marijuana or retail marijuana products from any retail marijuana store, retail marijuana cultivation facility, or retail marijuana products manufacturer.

     511.  Retail marijuana accelerator store license.  A retail marijuana accelerator store license may be issued to a social equity licensee to exercise the privileges of a retail marijuana store licensee on the premises of an accelerator-endorsed retail marijuana store.  The retail marijuana accelerator store may receive technical assistance and financial support from the retail marijuana store with an accelerator endorsement.

                           ARTICLE 6

                         UNLAWFUL ACTS

     601.  Unlawful acts - exceptions.  (1)  Except as otherwise provided in this chapter, it is unlawful for a person, except in the licensed premises of a marijuana hospitality business licensed pursuant to Section 509 or a retail marijuana hospitality and sales business licensed pursuant to Section 510:

          (a)  To consume regulated marijuana or regulated marijuana products in a licensed retail marijuana business; or

          (b)  For a retail marijuana business to allow regulated marijuana or regulated marijuana products to be consumed upon its licensed premises.

     (2)  It is unlawful for a person to:

          (a)  Buy, sell, transfer, give away, or acquire regulated marijuana or regulated marijuana products except as allowed pursuant to this chapter or Section 1 of this act;

          (b)  Have a controlling beneficial ownership, passive beneficial ownership, or indirect financial interest in a license pursuant to this chapter that was not disclosed in accordance with Section 309; however, this paragraph (b) does not apply to banks or savings and loan associations supervised and regulated by an agency of the state or federal government, or to FHA-approved mortgagees, or to stockholders, directors, or officers thereof;

          (c)  Exercise any privilege of a license issued pursuant to this chapter that the person does not hold;

          (d)  Exercise any privilege associated with holding a controlling beneficial ownership, passive beneficial ownership, or indirect financial interest in a license that was not disclosed in accordance with Section 309; or

          (e)  Engage in transfer of ownership without prior approval as required by this chapter, including but not limited to:

               (i)  A proposed transferee operating a retail marijuana business before a transfer of ownership request for that business is approved in writing by the state licensing authority; or

               (ii)  A current controlling beneficial owner, passive beneficial owner, or proposed transferor failing to retain full responsibility for a retail marijuana business identified in the transfer of ownership application until the transfer request is approved in writing by the state licensing authority.

     (3)  It is unlawful for a person licensed pursuant to this chapter:

          (a)  To fail to report a transfer required by Section 313(11);

          (b)  To knowingly adulterate or alter, or to attempt to adulterate or alter, any samples of regulated marijuana or regulated marijuana products for the purpose of circumventing contaminant testing detection limits or potency testing requirements;

          (c)  To use advertising material that is misleading, deceptive, or false, or that is designed to appeal to minors;

          (d)  To provide public premises, or any portion thereof, for the purpose of consumption of regulated marijuana in any form, except in the licensed premises of a marijuana hospitality business licensed pursuant to Section 509 or a retail marijuana hospitality and sales business licensed pursuant to Section 510;

          (e)  To have in possession or upon the licensed premises any regulated marijuana, the sale of which is not permitted by the license, except if it is for purposes of recycling;

          (f)  To have on the licensed premises any regulated marijuana or marijuana paraphernalia that shows evidence of the regulated marijuana having been consumed or partially consumed, except:

               (i)  If it is for purposes of recycling; or

               (ii)  In the licensed premises of a marijuana hospitality business licensed pursuant to Section 509 or a retail marijuana hospitality and sales business licensed pursuant to Section 510;

          (g)  To abandon a licensed premises or otherwise cease operation without notifying the state and local licensing authorities at least forty-eight hours in advance and without accounting for and forfeiting to the state licensing authority for destruction of all regulated marijuana or regulated marijuana products;

          (h)  To offer for sale or solicit an order for regulated marijuana in person except within the licensed premises;

          (i)  To buy regulated marijuana from a person not licensed to sell as provided by this chapter;

          (j)  To sell regulated marijuana except in the permanent location specifically designated in the license for sale; or

          (k)  To burn or otherwise destroy regulated marijuana or any substance containing regulated marijuana for the purpose of evading an investigation or preventing seizure.

     (4)  It is unlawful for any person licensed to sell retail marijuana or retail marijuana products pursuant to this chapter:

          (a)  To sell or permit the sale of retail marijuana or retail marijuana products to a person under twenty-one (21) years of age; or

          (b)  To distribute marijuana or marijuana products, with or without remuneration, directly to another person using a mobile distribution store.

     (5)  A peace officer or a law enforcement agency shall not use any patient information to make traffic stops.

     (6)  (a)  It is unlawful for a person to engage in any act or omission with the intent to evade disclosure, reporting, record keeping, or suitability requirements pursuant to this chapter, including but not limited to the following:

               (i)  Failing to file a report required under this chapter or causing or attempting to cause a person to fail to file such a report;

               (ii)  Filing or causing or attempting to cause a person to file a report required under this chapter that contains a material omission or misstatement of fact;

               (iii)  Making false or misleading statements regarding the offering of an owner's interest in a retail marijuana business; or

               (iv)  Structuring any transaction with the intent to evade disclosure, reporting, record keeping, or suitability requirements pursuant to this chapter.

          (b)  The state licensing authority may deny, suspend, revoke, fine, or impose other sanctions against a person's license issued under this chapter if the state licensing authority finds a violation of this subsection (6) by the person, the person's controlling beneficial owner, passive beneficial owner, indirect financial interest holder, or any agent or employee thereof.

     (7)  A person who commits any acts that are unlawful pursuant to this chapter is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00), or by imprisonment in the county jail for not more than six (6) months, or both.

     602.  Unlawful open and public consumption.  (1)  The open and public consumption of marijuana is prohibited.

          (2)  The governing body of a county, municipality, or municipality and county, may adopt an ordinance authorizing marijuana consumption locations or circumstances that are exceptions to the prohibition described in subsection (1) of this section if the locations are not accessible to the public or a substantial number of the public without restriction, including but not limited to restrictions on the age of the members of the public who are allowed access to such location.

     (3)  The prohibition in subsection (1) of this section does not apply to any business licensed pursuant to this chapter that permits consumption on its premises if the business is operating within the conditions of licensure.

                                                                   ARTICLE 7

                  MARIJUANA CASH FUND AND FEES

     701.  Marijuana Cash Fund.  (1)  (a)  All money collected by the state licensing authority pursuant to this chapter shall be transmitted to the State Treasurer, who shall credit the same to the Marijuana Cash Fund, which is created as a special fund in the State Treasury and shall be referred to in this section as the "fund". The fund consists of:

               (i)  The money collected by the state licensing authority; and

               (ii)  Any additional money that is transferred or appropriated to the fund that is necessary for the operation of the state licensing authority.

          (b)  Money in the fund is subject to annual appropriation by the Legislature to the department for the direct and indirect costs associated with implementing this chapter.

          (c)  Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited to the credit of the fund.

     (2)  (a)  The state licensing authority shall establish fees for processing the following types of applications, licenses, notices, or reports required to be submitted to the state licensing authority:

               (i)  Applications for licenses listed in Section 401 and rules promulgated pursuant to that section;

               (ii)  Applications to change location pursuant to Section 313(13) and rules promulgated pursuant to that section;

               (iii)  Applications for transfer of ownership pursuant to Section 312 and rules promulgated pursuant to that section;

               (iv)  License renewal and expired license renewal applications pursuant to Section 314; and

               (v)  Licenses as listed in Section 401.

          (b)  The amounts of such fees must reflect the actual direct and indirect costs of the state licensing authority in the administration and enforcement of this chapter.

          (c)  The state licensing authority may charge applicants licensed under this chapter a fee for the cost of each fingerprint analysis and background investigation undertaken to qualify new officers, directors, managers, or employees.

          (d)  At least annually, the state licensing authority shall review the amounts of the fees and, if necessary, adjust the amounts to reflect the direct and indirect costs of the state licensing authority.

     (4)  Except as provided in subsection (5) of this section, the state licensing authority shall establish a basic fee that shall be paid at the time of service of any subpoena upon the state licensing authority, plus a fee for meals and a fee for mileage at the rate prescribed for state officers and employees in Section 25-3-41 for each mile actually and necessarily traveled in going to and returning from the place named in the subpoena.  If the person named in the subpoena is required to attend the place named in the subpoena for more than one (1) day, there must be paid, in advance, a sum to be established by the state licensing authority for each day of attendance to cover the expenses of the person named in the subpoena.

     (5)  The subpoena fee established pursuant to subsection (4) of this section is not applicable to any federal, state, or local governmental agency.

     702.  Fees - allocation.  (1)  Except as otherwise provided, all fees and fines provided for by this chapter shall be paid to the department, which shall transmit the fees to the State Treasurer, who shall credit the fees to the Marijuana Cash Fund created in Section 701.

     (2)  The expenditures of the state licensing authority shall be paid from the Marijuana Cash Fund created in Section 701 upon appropriation of the Legislature.

     703.  Fees.  (1)  The state licensing authority may charge and collect fees pursuant to this chapter.

     (2)  The application fee for a retail marijuana business is Five Thousand Dollars ($5,000.00).  The state licensing authority shall transfer Two Thousand Five Hundred Dollars ($2,500.00) of the fee to the Marijuana Cash Fund and remit Two Thousand Five Hundred Dollars ($2,500.00) to the local jurisdiction in which the license is proposed to be issued.  If the state licensing authority is considering raising the Five Thousand Dollar ($5,000.00) application fee, it shall confer with each local jurisdiction in which a license pursuant to this chapter is issued prior to raising the application fee.  If the application fee amount is changed, it must be split evenly between the Marijuana Cash Fund and the local jurisdiction in which the license is proposed to be issued.

     (3)  A local jurisdiction in which a license under this chapter may be permitted may adopt and impose operating fees in an amount determined by the local jurisdiction on marijuana businesses and establishments located within the local jurisdiction.

                                                                   ARTICLE 8

                      DISCIPLINARY ACTIONS

     801.  Suspension - revocation - fines.  (1)  In addition to any other sanctions prescribed by this chapter or rules promulgated pursuant to this chapter, the state licensing authority or local licensing authority has the power, on its own motion or on complaint, after investigation and opportunity for a public hearing at which the licensee must be afforded an opportunity to be heard, to fine a licensee or to suspend or revoke a license issued by the authority for a violation by the licensee or by any of the agents or employees of the licensee of the provisions of this chapter, or any of the rules promulgated pursuant to this chapter, or of any of the terms, conditions, or provisions of the license issued by the state or local licensing authority.  The state or local licensing authority has the power to administer oaths and issue subpoenas to require the presence of persons and the production of papers, books, and records necessary to the determination of a hearing that the state or local licensing authority is authorized to conduct.

     (2)  The state or local licensing authority shall provide notice of suspension, revocation, fine, or other sanction, as well as the required notice of the hearing pursuant to subsection (1) of this section, by mailing the same in writing to the licensee at the address contained in the license and, if different, at the last address furnished to the authority by the licensee. Except in the case of a summary suspension, a suspension is not for a period longer than six (6) months.  If a license is suspended or revoked, a part of the fees paid therefor are not returned to the licensee. Any license, registration, or permit may be summarily suspended by the issuing authority without notice pending any prosecution, investigation or public hearing.

     (3)  (a)  Whenever a decision of the state or local licensing authority suspending a license for fourteen (14) days or less becomes final, the licensee may, before the operative date of the suspension, petition for permission to pay a fine in lieu of having the license suspended for all or part of the suspension period.  Upon the receipt of the petition, the state or local licensing authority may, in its sole discretion, stay the proposed suspension and cause any investigation to be made that it deems desirable and may, in its sole discretion, grant the petition if the state or local licensing authority is satisfied that:

               (i)  The public welfare would not be impaired by permitting the licensee to operate during the period set for suspension and that the payment of the fine will achieve the desired disciplinary purposes;

               (ii)  The books and records of the licensee are kept in such a manner that the loss of sales that the licensee would have suffered had the suspension gone into effect can be determined with reasonable accuracy; and

               (iii)  The licensee has not had his or her license suspended or revoked, nor had any suspension stayed by payment of a fine, during the two (2) years immediately preceding the date of the motion or complaint that resulted in a final decision to suspend the license or permit.

          (b)  The fine accepted shall be not less than Five Hundred Dollars ($500.00) nor more than One Hundred Thousand Dollars ($100,000,00).

          (c)  Payment of a fine pursuant to the provisions of this subsection (3) must be in the form of cash or in the form of a certified check or cashier's check made payable to the state or local licensing authority, whichever is appropriate.

     (4)  Upon payment of the fine pursuant to subsection (3) of this section, the state licensing authority shall enter its further order permanently staying the imposition of the suspension.  Fines paid to the state licensing authority pursuant to subsection (3) of this section shall be transmitted to the State Treasurer, who shall deposit the same into the State General Fund.

     (5)  In connection with a petition pursuant to subsection (3) of this section, the authority of the state or local licensing authority is limited to the granting of such stays as are necessary for the authority to complete its investigation and make its findings and, if the authority makes such findings, to the granting of an order permanently staying the imposition of the entire suspension or that portion of the suspension not otherwise conditionally stayed.

     (6)  If the state or local licensing authority does not make the findings required in subsection (3)(a) of this section and does not order the suspension permanently stayed, the suspension goes into effect on the operative date finally set by the state or local licensing authority.

     (7)  Each local licensing authority shall report all actions taken to impose fines, suspensions, and revocations to the state licensing authority in a manner required by the state licensing authority.  No later than January 15 of each year, the state licensing authority shall compile a report of the preceding year's actions in which fines, suspensions, or revocations were imposed by the state licensing authority.  The state licensing authority shall file one (1) copy of the report with the Clerk of the House of Representatives and one (1) copy with the Secretary of the Senate.

     802.  Judicial review.  Decisions by the state licensing authority are subject to judicial review.

     803.  Disposition of unauthorized marijuana or marijuana products and related materials - rules.  (1)  The provisions of this section apply in addition to any criminal, civil, or administrative penalties and in addition to any other penalties prescribed by this chapter or any rules promulgated pursuant to this chapter.  Any provisions in this chapter related to law enforcement are considered a cumulative right of the people in the enforcement of the criminal laws.

     (2)  Every licensee licensed under this chapter is deemed, by virtue of applying for, holding, or renewing such person's license, to have expressly consented to the procedures set forth in this section.

     (3)  A state or local agency is not required to cultivate or care for any regulated marijuana or regulated marijuana product belonging to or seized from a licensee.  A state or local agency is not authorized to sell marijuana, regulated or otherwise.

     (4)  If the state or local licensing authority issues a final agency order imposing a disciplinary action against a licensee pursuant to Section 801, then, in addition to any other remedies, the licensing authority's final agency order may specify that some or all of the licensee's marijuana or marijuana product is not regulated marijuana or a regulated marijuana product and is an illegal controlled substance.  The order may further specify that the licensee loses any interest in any of the marijuana or marijuana product even if the marijuana or marijuana product previously qualified as regulated marijuana or a regulated marijuana product.  The final agency order may direct the destruction of any such marijuana and marijuana products, except as provided in subsections (5) and (6) of this section.  The authorized destruction may include the incidental destruction of any containers, equipment, supplies, and other property associated with the marijuana or marijuana product.

     (5)  Following the issuance of a final agency order by the state or local licensing authority against a licensee and ordering destruction authorized by subsection (4) of this section, a licensee has fifteen (15) days within which to file a petition for stay of agency action with the Chancery Court of the First Judicial District of Hinds County, which is deemed to be the residence of the state licensing authority for purposes of this section.  The licensee shall serve the petition in accordance with the Mississippi Rules of Civil Procedure.  The chancery court shall promptly rule upon the petition and determine whether the licensee has a substantial likelihood of success on judicial review so as to warrant delay of the destruction authorized by subsection (4) of this section or whether other circumstances, including but not limited to the need for preservation of evidence, warrant delay of such destruction.  If destruction is so delayed pursuant to judicial order, the court shall issue an order setting forth terms and conditions pursuant to which the licensee may maintain the regulated marijuana and regulated marijuana product pending judicial review and prohibiting the licensee from using or distributing the regulated marijuana or regulated marijuana product pending the review.  The licensing authority shall not carry out the destruction authorized by subsection (4) of this section until fifteen (15) days have passed without the filing of a petition for stay of agency action or until the court has issued an order denying stay of agency action pursuant to this subsection (5).

     (6)  A district attorney shall notify the state licensing authority if he or she begins investigating a retail marijuana business.  If the state licensing authority has received notification from a district attorney that an investigation is being conducted, the state licensing authority shall not destroy any marijuana or marijuana products from the retail marijuana business until the destruction is approved by the district attorney.

     (7)  The state licensing authority shall promulgate rules governing the implementation of this section.

                                                                   ARTICLE 9

                INSPECTION OF BOOKS AND RECORDS

     901.  Inspection procedures.  (1)  Each licensee shall keep a complete set of all records necessary to show fully the business transactions of the licensee, all of which are open at all times during business hours for the inspection and examination by the state licensing authority or its duly authorized representatives.  The state licensing authority may require any licensee to furnish such information as it considers necessary for the proper administration of this chapter and may require an audit to be made of the books of account and records on such occasions as it may consider necessary by an auditor to be selected by the state licensing authority who shall likewise have access to all books and records of the licensee, and the expense thereof must be paid by the licensee.

     (2)  The licensed premises, including any places of storage where regulated marijuana or regulated marijuana products are stored, cultivated, sold, dispensed, or tested are subject to inspection by the state or local licensing authority, or local jurisdictions and their investigators, during all business hours and other times of apparent activity, for the purpose of inspection or investigation.  Access is required during business hours for examination of any inventory or books and records required to be kept by the licensees.  When any part of the licensed premises consists of a locked area, upon demand to the licensee, such area must be made available for inspection without delay, and, upon request by authorized representatives of the state or local jurisdiction, the licensee shall open the area for inspection.

     (3)  Each licensee shall retain all books and records necessary to show fully the business transactions of the licensee for a period of the current tax year and the three immediately prior tax years.

                          ARTICLE 10

RESPONSIBLE VENDOR STANDARDS

     1001.  Responsible vendor program - standards - designation.  (1)  A person who wants to offer a responsible retail marijuana vendor server and seller training program must submit an application to the state licensing authority for approval, which program is referred to in this Article 10 as an "approved training program".  The state licensing authority shall approve the submitted program if the submitted program meets the minimum criteria described in subsection (2) of this section.

     (2)  An approved training program must contain, at a minimum, the following standards and be taught in a classroom setting in a minimum of a two-hour period:

          (a)  Program standards that specify, at a minimum, who must attend, the time frame for new staff to attend, recertification requirements, record keeping, testing and assessment protocols, and effectiveness evaluations; and

          (b)  A core curriculum of pertinent statutory and regulatory provisions, which curriculum includes but need not be limited to:

               (i)  Information on required licenses, age requirements, patient registry cards issued by the department of public health and environment, maintenance of records, privacy issues, and unlawful acts;

               (ii)  Administrative and criminal liability and license and court sanctions;

               (iii)  Statutory and regulatory requirements for employees and owners;

               (iv)  Statutory and regulatory requirements related to marijuana delivery;

               (v)  Acceptable forms of identification;

               (vi)  Local and state licensing and enforcement, which may include but need not be limited to key statutes and rules affecting patients, owners, managers, and employees; and

               (vii)  Information on serving size, THC and cannabinoid potency, and impairment.

     (3)  When promulgating program standards pursuant to subsection (2) of this section, the state licensing authority shall consider input from other state agencies, local jurisdictions, the retail marijuana industry, and any other state or national server and seller program.

     (4)  A provider of an approved training program shall maintain its training records at its principal place of business during the applicable year and for the preceding three (3) years, and the provider shall make the records available for inspection by the licensing authority during normal business hours.

     1002.  Responsible vendor - designation.  (1)  (a)  A retail marijuana business licensed pursuant to this chapter may receive a responsible vendor designation from the program vendor after successfully completing a responsible retail marijuana vendor server and seller training program approved by the state licensing authority.  A responsible vendor designation is valid for two (2) years from the date of issuance.

          (b)  Successful completion of an approved training program is achieved when the program has been attended by and, as determined by the program provider, satisfactorily completed by all employees selling and handling retail marijuana, all managers, and all resident on-site owners, if any.

          (c)  In order to maintain the responsible vendor designation, the licensed retail marijuana business must have each new employee who sells or handles retail marijuana, manager, or resident on-site owner attend and satisfactorily complete a responsible retail marijuana vendor server and seller training program within ninety (90) days after being employed or becoming an owner.  The licensed retail marijuana business shall maintain documentation of completion of the program by new employees, managers, or owners.

     (2)  A licensed retail marijuana business that receives a responsible vendor designation from the program vendor shall maintain information on all persons licensed pursuant to this chapter who are in its employment and who have been trained in an approved training program.  The information includes the date, place, time, and duration of training and a list of all licensed persons attending each specific training class, which class includes a training examination or assessment that demonstrates proficiency.

     (3)  If a local or state licensing authority initiates an administrative action against a licensee who has complied with the requirements of this section and has been designated a responsible vendor, the licensing authority shall consider the designation as a mitigating factor when imposing sanctions or penalties on the licensee.

     SECTION 3.  Section 27-104-203, Mississippi Code of 1972, is amended as follows:

     27-104-203.  From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent, audit fee, personnel fee or other charge for services or resources received.  The provisions of this section shall not apply (a) to grants, contracts, pass-through funds, project fees or other charges for services between state agencies and the Board of Trustees of State Institutions of Higher Learning, any public university, the Mississippi Community College Board, any public community or junior college, and the State Department of Education, nor (b) to charges for services between the Board of Trustees of State Institutions of Higher Learning, any public university, the Mississippi Community College Board, any public community or junior college, and the State Department of Education, nor (c) to federal grants, pass-through funds, cost allocation charges, surplus property charges or project fees between state agencies as approved or determined by the State Fiscal Officer, nor (d) telecommunications, data center services, and/or other information technology services that are used on an as-needed basis and those costs shall be passed through to the using agency, nor (e) to federal grants, special funds, or pass-through funds, available for payment by state agencies to the Department of Finance and Administration related to Mississippi Management and Reporting Systems (MMRS) Statewide Application charges and utilities as approved or determined by the State Fiscal Officer, nor (f) to grants, contracts, pass-through funds, project fees or charges for services between the State Department of Health and the State Department of Revenue, and other state agencies or entities, including, but not limited to, the Board of Trustees of State Institutions of Higher Learning, any public university, the Mississippi Community College Board, any public community or junior college, and the State Department of Education, for the operation of the medical cannabis program as established by the Mississippi Medical Cannabis Act or the retail marijuana program as established by the Mississippi Retail Marijuana Act.  The Board of Trustees of State Institutions of Higher Learning, any public university, the Mississippi Community College Board, any public community or junior college, and the State Department of Education shall retain the authority to charge and be charged for expenditures that they deemed nonrecurring in nature by the State Fiscal Officer.

     SECTION 4.  Section 33-13-520, Mississippi Code of 1972, is amended as follows:

     33-13-520.  (1)  Any person subject to this code who uses, while on duty, any controlled substance listed in the Uniform Controlled Substances Law, not legally prescribed, or is found, by a chemical analysis of such person's blood or urine, to have in his blood, while on duty, any controlled substance described in subsection (3), not legally prescribed, shall be punished as a court-martial may direct.

     (2)  Any person subject to this code who wrongfully uses, possesses, manufactures, distributes, imports into the customs territory of the United States, exports from the United States, or introduces into an installation, vessel, vehicle or aircraft used by or under the control of the state military forces a substance described in subsection (3) shall be punished as a court-martial may direct.

     (3)  The substances referred to in subsections (1) and (2) are the following:

          (a)  Opium, heroin, cocaine, amphetamine, lysergic acid diethylamide, methamphetamine, phencyclidine, barbituric acid, and marijuana and any compound or derivative of any such substance.  For the purposes of this paragraph (a), "marijuana" shall not include medical cannabis that is lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or marijuana that is lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder.

          (b)  Any substance not specified in paragraph (a) that is listed on a schedule of controlled substance prescribed by the President for the purposes of the federal Uniform Code of Military Justice.

          (c)  Any other substance not specified in paragraph (a) or contained on a list prescribed by the President under paragraph (b) that is listed in Schedules I through V of Section 202 of the federal Controlled Substances Act (21 USCS 812).

     SECTION 5.  Section 37-11-29, Mississippi Code of 1972, is amended as follows:

     37-11-29.  (1)  Any principal, teacher or other school employee who has knowledge of any unlawful activity which occurred on educational property or during a school related activity or which may have occurred shall report such activity to the superintendent of the school district or his designee who shall notify the appropriate law enforcement officials as required by this section.  In the event of an emergency or if the superintendent or his designee is unavailable, any principal may make a report required under this subsection.

     (2)  Whenever any person who shall be an enrolled student in any school or educational institution in this state supported in whole or in part by public funds, or who shall be an enrolled student in any private school or educational institution, is arrested for, and lawfully charged with, the commission of any crime and convicted upon the charge for which he was arrested, or convicted of any crime charged against him after his arrest and before trial, the office or law enforcement department of which the arresting officer is a member, and the justice court judge and any circuit judge or court before whom such student is tried upon said charge or charges, shall make or cause to be made a report thereof to the superintendent or the president or chancellor, as the case may be, of the school district or other educational institution in which such student is enrolled.

     If the charge upon which such student was arrested, or any other charges preferred against him are dismissed or nol prossed, or if upon trial he is either convicted or acquitted of such charge or charges, same shall be reported to said respective superintendent or president, or chancellor, as the case may be.  A copy of said report shall be sent to the Secretary of the Board of Trustees of State Institutions of Higher Learning of the State of Mississippi, at Jackson, Mississippi.

     Said report shall be made within one (1) week after the arrest of such student and within one (1) week after any charge placed against him is dismissed or nol prossed, and within one (1) week after he shall have pled guilty, been convicted, or have been acquitted by trial upon any charge placed against him.  This section shall not apply to ordinary traffic violations involving a penalty of less than Fifty Dollars ($50.00) and costs.

     The State Superintendent of Public Education shall gather annually all of the reports provided under this section and prepare a report on the number of students arrested as a result of any unlawful activity which occurred on educational property or during a school related activity.  All data must be disaggregated by race, ethnicity, gender, school, offense and law enforcement agency involved.  However, the report prepared by the State Superintendent of Public Education shall not include the identity of any student who was arrested.

     On or before January 1 of each year, the State Superintendent of Public Education shall report to the Governor, the Lieutenant Governor, the Speaker of the House of Representatives and the Joint PEER Committee on this section.  The report must include data regarding arrests as a result of any unlawful activity which occurred on educational property or during a school related activity.

     (3)  When the superintendent or his designee has a reasonable belief that an act has occurred on educational property or during a school related activity involving any of the offenses set forth in subsection (6) of this section, the superintendent or his designee shall immediately report the act to the appropriate local law enforcement agency.  For purposes of this subsection, "school property" shall include any public school building, bus, public school campus, grounds, recreational area or athletic field in the charge of the superintendent.  The State Board of Education shall prescribe a form for making reports required under this subsection.  Any superintendent or his designee who fails to make a report required by this section shall be subject to the penalties provided in Section 37-11-35.

     (4)  The law enforcement authority shall immediately dispatch an officer to the educational institution and with probable cause the officer is authorized to make an arrest if necessary as provided in Section 99-3-7.

     (5)  Any superintendent, principal, teacher or other school personnel participating in the making of a required report pursuant to this section or participating in any judicial proceeding resulting therefrom shall be presumed to be acting in good faith.  Any person reporting in good faith shall be immune from any civil liability that might otherwise be incurred or imposed.

     (6)  For purposes of this section, "unlawful activity" means any of the following:

          (a)  Possession or use of a deadly weapon, as defined in Section 97-37-1;

          (b)  Possession, sale or use of any controlled substance;

          (c)  Aggravated assault, as defined in Section 97-3-7;

          (d)  Simple assault, as defined in Section 97-3-7, upon any school employee;

          (e)  Rape, as defined under Mississippi law;

          (f)  Sexual battery, as defined under Mississippi law;

          (g)  Murder, as defined under Mississippi law;

          (h)  Kidnapping, as defined under Mississippi law; or

          (i)  Fondling, touching, handling, etc., a child for lustful purposes, as defined in Section 97-5-23.

     For the purposes of this subsection (6), the term "controlled substance" does not include the possession or use of medical cannabis that is lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or the possession or use of marijuana that is lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder.

     SECTION 6.  Section 41-29-125, Mississippi Code of 1972, is amended as follows:

     41-29-125.  (1)  The State Board of Pharmacy may promulgate rules and regulations relating to the registration and control of the manufacture, distribution and dispensing of controlled substances within this state and the distribution and dispensing of controlled substances into this state from an out-of-state location.

          (a)  Every person who manufactures, distributes or dispenses any controlled substance within this state or who distributes or dispenses any controlled substance into this state from an out-of-state location, or who proposes to engage in the manufacture, distribution or dispensing of any controlled substance within this state or the distribution or dispensing of any controlled substance into this state from an out-of-state location, must obtain a registration issued by the State Board of Pharmacy, the State Board of Medical Licensure, the State Board of Dental Examiners, the Mississippi Board of Nursing or the Mississippi Board of Veterinary Medicine, as appropriate, in accordance with its rules and the law of this state.  Such registration shall be obtained annually or biennially, as specified by the issuing board, and a reasonable fee may be charged by the issuing board for such registration.

          (b)  Persons registered by the State Board of Pharmacy, with the consent of the United States Drug Enforcement Administration and the State Board of Medical Licensure, the State Board of Dental Examiners, the Mississippi Board of Nursing or the Mississippi Board of Veterinary Medicine to manufacture, distribute, dispense or conduct research with controlled substances may possess, manufacture, distribute, dispense or conduct research with those substances to the extent authorized by their registration and in conformity with the other provisions of this article.

          (c)  The following persons need not register and may lawfully possess controlled substances under this article:

               * * *1.(i)  An agent or employee of any registered manufacturer, distributor or dispenser of any controlled substance if he is acting in the usual course of his business or employment;

               * * *2.(ii)  A common or contract carrier or warehouse, or an employee thereof, whose possession of any controlled substance is in the usual course of business or employment;

                * * *3.(iii)  An ultimate user or a person in possession of any controlled substance pursuant to a valid prescription or in lawful possession of a Schedule V substance as defined in Section 41-29-121.

          (d)  The State Board of Pharmacy may waive by rule the requirement for registration of certain manufacturers, distributors or dispensers if it finds it consistent with the public health and safety.

          (e)  A separate registration is required at each principal place of business or professional practice where an applicant within the state manufactures, distributes or dispenses controlled substances and for each principal place of business or professional practice located out-of-state from which controlled substances are distributed or dispensed into the state.

          (f)  The State Board of Pharmacy, the Mississippi Bureau of Narcotics, the State Board of Medical Licensure, the State Board of Dental Examiners, the Mississippi Board of Nursing and the Mississippi Board of Veterinary Medicine may inspect the establishment of a registrant or applicant for registration in accordance with the regulations of these agencies as approved by the board.

     (2)  Whenever a pharmacy ships, mails or delivers any Schedule II controlled substance listed in Section 41-29-115 to a private residence in this state, the pharmacy shall arrange with the entity that will actually deliver the controlled substance to a recipient in this state that the entity will:  (a) deliver the controlled substance only to a person who is eighteen (18) years of age or older; and (b) obtain the signature of that person before delivering the controlled substance.  The requirements of this subsection shall not apply to a pharmacy serving a nursing facility or to a pharmacy owned and/or operated by a hospital, nursing facility or clinic to which the general public does not have access to purchase pharmaceuticals on a retail basis.

     (3)  This section does not apply to any of the actions that are lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or any of the actions that are lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder.

     SECTION 7.  Section 41-29-127, Mississippi Code of 1972, is amended as follows:

     41-29-127.  (a)  The State Board of Pharmacy shall register an applicant to manufacture or distribute controlled substances included in Sections 41-29-113 through 41-29-121 unless it determines that the issuance of that registration would be inconsistent with the public interest.  In determining the public interest, the State Board of Pharmacy shall consider the following factors:

          (1)  Maintenance of effective controls against diversion of controlled substances into other than legitimate medical, scientific, or industrial channels;

          (2)  Compliance with applicable state and local law;

          (3)  Any convictions of the applicant under any federal and state laws relating to any controlled substance;

          (4)  Past experience in the manufacture or distribution of controlled substances and the existence in the applicant's establishment of effective controls against diversion;

          (5)  Furnishing by the applicant of false or fraudulent material in any application filed under this article;

          (6)  Suspension or revocation of the applicant's federal registration to manufacture, distribute, or dispense controlled substances as authorized by federal law; and

          (7)  Any other factors relevant to and consistent with the public health and safety. 

     (b)  Registration under subsection (a) does not entitle a registrant to manufacture and distribute controlled substances in Schedule I or II, as set out in Sections 41-29-113 and 41-29-115, other than those specified in the registration. 

     (c)  Practitioners must be registered to dispense any controlled substances or to conduct research with controlled substances in Schedules II through V, as set out in Sections 41-29-115 through 41-29-121, if they are authorized to dispense or conduct research under the law of this state.  The State Board of Pharmacy need not require separate registration under this section for practitioners engaging in research with nonnarcotic controlled substances in the said Schedules II through V where the registrant is already registered therein in another capacity.  Practitioners registered under federal law to conduct research with Schedule I substances, as set out in Section 41-29-113, may conduct research with Schedule I substances within this state upon furnishing the State Board of Health evidence of that federal registration. 

     (d)  Compliance by manufacturers and distributors with the provisions of the federal law respecting registration (excluding fees) entitles them to be registered under this article.

     (e)  This section does not apply to any of the actions that are lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or any of the actions that are lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder.

     SECTION 8.  Section 41-29-136, Mississippi Code of 1972, is amended as follows:

     41-29-136.  (1)  "CBD solution" means a pharmaceutical preparation consisting of processed cannabis plant extract in oil or other suitable vehicle.

     (2)  (a)  CBD solution prepared from (i) cannabis plant extract that is provided by the National Center for Natural Products Research at the University of Mississippi under appropriate federal and state regulatory approvals, or (ii) cannabis extract from hemp produced pursuant to Sections 69-25-201 through 69-25-221, which is prepared and tested to meet compliance with regulatory specifications, may be dispensed by the Department of Pharmacy Services at the University of Mississippi Medical Center (UMMC Pharmacy) after mixing the extract with a suitable vehicle.  The CBD solution may be prepared by the UMMC Pharmacy or by another pharmacy or laboratory in the state under appropriate federal and state regulatory approvals and registrations.

          (b)  The patient or the patient's parent, guardian or custodian must execute a hold-harmless agreement that releases from liability the state and any division, agency, institution or employee thereof involved in the research, cultivation, processing, formulating, dispensing, prescribing or administration of CBD solution obtained from entities authorized under this section to produce or possess cannabidiol for research under appropriate federal and state regulatory approvals and registrations.

          (c)  The National Center for Natural Products Research at the University of Mississippi and the Mississippi Agricultural and Forestry Experiment Station at Mississippi State University are the only entities authorized to produce cannabis plants for cannabidiol research.

          (d)  Research of CBD solution under this section must comply with the provisions of Section 41-29-125 regarding lawful possession of controlled substances, of Section 41-29-137 regarding record-keeping requirements relative to the dispensing, use or administration of controlled substances, and of Section 41-29-133 regarding inventory requirements, insofar as they are applicable.  Authorized entities may enter into public-private partnerships to facilitate research.

     (3)  (a)  In a prosecution for the unlawful possession of marijuana under the laws of this state, it is an affirmative and complete defense to prosecution that:

              (i)  The defendant suffered from a debilitating epileptic condition or related illness and the use or possession of CBD solution was pursuant to the order of a physician as authorized under this section; or

              (ii)  The defendant is the parent, guardian or custodian of an individual who suffered from a debilitating epileptic condition or related illness and the use or possession of CBD solution was pursuant to the order of a physician as authorized under this section.

          (b)  An agency of this state or a political subdivision thereof, including any law enforcement agency, may not initiate proceedings to remove a child from the home based solely upon the possession or use of CBD solution by the child or parent, guardian or custodian of the child as authorized under this section.

          (c)  An employee of the state or any division, agency, institution thereof involved in the research, cultivation, processing, formulation, dispensing, prescribing or administration of CBD solution shall not be subject to prosecution for unlawful possession, use, distribution or prescription of marijuana under the laws of this state for activities arising from or related to the use of CBD solution in the treatment of individuals diagnosed with a debilitating epileptic condition.

     (4)  This section does not apply to any of the actions that are lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or any of the actions that are lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder.

     (5)  This section shall be known as "Harper Grace's Law."

     (6)  This section shall stand repealed from and after July 1, 2024.

     SECTION 9.  Section 41-29-137, Mississippi Code of 1972, is amended as follows:

     41-29-137.  (a)  (1)  Except when dispensed directly by a practitioner, other than a pharmacy, to an ultimate user, no controlled substance in Schedule II, as set out in Section 41-29-115, may be dispensed without the written valid prescription of a practitioner.  A practitioner shall keep a record of all controlled substances in Schedule I, II and III administered, dispensed or professionally used by him otherwise than by prescription.

          (2)  In emergency situations, as defined by rule of the State Board of Pharmacy, Schedule II drugs may be dispensed upon the oral valid prescription of a practitioner, reduced promptly to writing and filed by the pharmacy.  Prescriptions shall be retained in conformity with the requirements of Section 41-29-133.  No prescription for a Schedule II substance may be refilled unless renewed by prescription issued by a licensed medical doctor.

     (b)  Except when dispensed directly by a practitioner, other than a pharmacy, to an ultimate user, a controlled substance included in Schedule III or IV, as set out in Sections 41-29-117 and 41-29-119, shall not be dispensed without a written or oral valid prescription of a practitioner.  The prescription shall not be filled or refilled more than six (6) months after the date thereof or be refilled more than five (5) times, unless renewed by the practitioner.

     (c)  A controlled substance included in Schedule V, as set out in Section 41-29-121, shall not be distributed or dispensed other than for a medical purpose.

     (d)  An optometrist certified to prescribe and use therapeutic pharmaceutical agents under Sections 73-19-153 through 73-19-165 shall have the prescriptive authority granted in Section 73-19-157.

     (e)  Administration by injection of any pharmaceutical product authorized in this section is expressly prohibited except when dispensed directly by a practitioner other than a pharmacy.

     (f)  (1)  For the purposes of this article, Title 73, Chapter 21, and Title 73, Chapter 25, Mississippi Code of 1972, as it pertains to prescriptions for controlled substances, a "valid prescription" means a prescription that is issued for a legitimate medical purpose in the usual course of professional practice by:

              (A)  A practitioner who has conducted at least one (1) in-person medical evaluation of the patient, except as otherwise authorized by Section 41-29-137.1; or

              (B)  A covering practitioner.

          (2)  (A)  "In-person medical evaluation" means a medical evaluation that is conducted with the patient in the physical presence of the practitioner, without regard to whether portions of the evaluation are conducted by other health professionals.

              (B)  "Covering practitioner" means a practitioner who conducts a medical evaluation other than an in-person medical evaluation at the request of a practitioner who has conducted at least one (1) in-person medical evaluation of the patient or an evaluation of the patient through the practice of telemedicine within the previous twenty-four (24) months and who is temporarily unavailable to conduct the evaluation of the patient.

          (3)  A prescription for a controlled substance based solely on a consumer's completion of an online medical questionnaire is not a valid prescription.

          (4)  Nothing in this subsection (f) shall apply to:

              (A)  A prescription issued by a practitioner engaged in the practice of telemedicine as authorized under state or federal law; or

              (B)  The dispensing or selling of a controlled substance pursuant to practices as determined by the United States Attorney General by regulation.

     (g)  This section does not apply to any of the actions that are lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or any of the actions that are lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder.

     SECTION 10.  Section 41-29-139, Mississippi Code of 1972, is amended as follows:

     41-29-139.  (a)  Transfer and possession with intent to transfer.  Except as authorized by this article, it is unlawful for any person knowingly or intentionally:

          (1)  To sell, barter, transfer, manufacture, distribute, dispense or possess with intent to sell, barter, transfer, manufacture, distribute or dispense, a controlled substance; or

          (2)  To create, sell, barter, transfer, distribute, dispense or possess with intent to create, sell, barter, transfer, distribute or dispense, a counterfeit substance.

     (b)  Punishment for transfer and possession with intent to transfer.  Except as otherwise provided in Section 41-29-142, any person who violates subsection (a) of this section shall be, if convicted, sentenced as follows:

          (1)  For controlled substances classified in Schedule I or II, as set out in Sections 41-29-113 and 41-29-115, other than marijuana or synthetic cannabinoids:

              (A)  If less than two (2) grams or ten (10) dosage units, by imprisonment for not more than eight (8) years or a fine of not more than Fifty Thousand Dollars ($50,000.00), or both.

              (B)  If two (2) or more grams or ten (10) or more dosage units, but less than ten (10) grams or twenty (20) dosage units, by imprisonment for not less than three (3) years nor more than twenty (20) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both.

              (C)  If ten (10) or more grams or twenty (20) or more dosage units, but less than thirty (30) grams or forty (40) dosage units, by imprisonment for not less than five (5) years nor more than thirty (30) years or a fine of not more than Five Hundred Thousand Dollars ($500,000.00), or both.

          (2)  (A)  For marijuana:

                    1.  If thirty (30) grams or less, by imprisonment for not more than three (3) years or a fine of not more than Three Thousand Dollars ($3,000.00), or both;

                    2.  If more than thirty (30) grams but less than two hundred fifty (250) grams, by imprisonment for not more than five (5) years or a fine of not more than Five Thousand Dollars ($5,000.00), or both;

                   3.  If two hundred fifty (250) or more grams but less than five hundred (500) grams, by imprisonment for not less than three (3) years nor more than ten (10) years or a fine of not more than Fifteen Thousand Dollars ($15,000.00), or both;

                   4.  If five hundred (500) or more grams but less than one (1) kilogram, by imprisonment for not less than five (5) years nor more than twenty (20) years or a fine of not more than Twenty Thousand Dollars ($20,000.00), or both.

              (B)  For synthetic cannabinoids:

                   1.  If ten (10) grams or less, by imprisonment for not more than three (3) years or a fine of not more than Three Thousand Dollars ($3,000.00), or both;

                   2.  If more than ten (10) grams but less than twenty (20) grams, by imprisonment for not more than five (5) years or a fine of not more than Five Thousand Dollars ($5,000.00), or both;

                    3.  If twenty (20) or more grams but less than forty (40) grams, by imprisonment for not less than three (3) years nor more than ten (10) years or a fine of not more than Fifteen Thousand Dollars ($15,000.00), or both;

                   4.  If forty (40) or more grams but less than two hundred (200) grams, by imprisonment for not less than five (5) years nor more than twenty (20) years or a fine of not more than Twenty Thousand Dollars ($20,000.00), or both.

          (3)  For controlled substances classified in Schedules III and IV, as set out in Sections 41-29-117 and 41-29-119:

               (A)  If less than two (2) grams or ten (10) dosage units, by imprisonment for not more than five (5) years or a fine of not more than Five Thousand Dollars ($5,000.00), or both;

              (B)  If two (2) or more grams or ten (10) or more dosage units, but less than ten (10) grams or twenty (20) dosage units, by imprisonment for not more than eight (8) years or a fine of not more than Fifty Thousand Dollars ($50,000.00), or both;

              (C)  If ten (10) or more grams or twenty (20) or more dosage units, but less than thirty (30) grams or forty (40) dosage units, by imprisonment for not more than fifteen (15) years or a fine of not more than One Hundred Thousand Dollars ($100,000.00), or both;

              (D)  If thirty (30) or more grams or forty (40) or more dosage units, but less than five hundred (500) grams or two thousand five hundred (2,500) dosage units, by imprisonment for not more than twenty (20) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both.

          (4)  For controlled substances classified in Schedule V, as set out in Section 41-29-121:

              (A)  If less than two (2) grams or ten (10) dosage units, by imprisonment for not more than one (1) year or a fine of not more than Five Thousand Dollars ($5,000.00), or both;

               (B)  If two (2) or more grams or ten (10) or more dosage units, but less than ten (10) grams or twenty (20) dosage units, by imprisonment for not more than five (5) years or a fine of not more than Ten Thousand Dollars ($10,000.00), or both;

              (C)  If ten (10) or more grams or twenty (20) or more dosage units, but less than thirty (30) grams or forty (40) dosage units, by imprisonment for not more than ten (10) years or a fine of not more than Twenty Thousand Dollars ($20,000.00), or both;

              (D)  For thirty (30) or more grams or forty (40) or more dosage units, but less than five hundred (500) grams or two thousand five hundred (2,500) dosage units, by imprisonment for not more than fifteen (15) years or a fine of not more than Fifty Thousand Dollars ($50,000.00), or both.

     (c)  Simple possession.  Except as otherwise provided under subsection (i) of this section for actions that are lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or actions that are lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder, it is unlawful for any person knowingly or intentionally to possess any controlled substance unless the substance was obtained directly from, or pursuant to, a valid prescription or order of a practitioner while acting in the course of his professional practice, or except as otherwise authorized by this article.  The penalties for any violation of this subsection (c) with respect to a controlled substance classified in Schedules I, II, III, IV or V, as set out in Section 41-29-113, 41-29-115, 41-29-117, 41-29-119 or 41-29-121, including marijuana or synthetic cannabinoids, shall be based on dosage unit as defined herein or the weight of the controlled substance as set forth herein as appropriate:

     "Dosage unit (d.u.)" means a tablet or capsule, or in the case of a liquid solution, one (1) milliliter.  In the case of lysergic acid diethylamide (LSD) the term, "dosage unit" means a stamp, square, dot, microdot, tablet or capsule of a controlled substance.

     For any controlled substance that does not fall within the definition of the term "dosage unit," the penalties shall be based upon the weight of the controlled substance.

     The weight set forth refers to the entire weight of any mixture or substance containing a detectable amount of the controlled substance.

     If a mixture or substance contains more than one (1) controlled substance, the weight of the mixture or substance is assigned to the controlled substance that results in the greater punishment.

      A person shall be charged and sentenced as follows for a violation of this subsection with respect to:

          (1)  A controlled substance classified in Schedule I or II, except marijuana and synthetic cannabinoids:

              (A)  If less than one-tenth (0.1) gram or two (2) dosage units, the violation is a misdemeanor and punishable by imprisonment for not more than one (1) year or a fine of not more than One Thousand Dollars ($1,000.00), or both.

              (B)  If one-tenth (0.1) gram or more or two (2) or more dosage units, but less than two (2) grams or ten (10) dosage units, by imprisonment for not more than three (3) years or a fine of not more than Fifty Thousand Dollars ($50,000.00), or both.

               (C)  If two (2) or more grams or ten (10) or more dosage units, but less than ten (10) grams or twenty (20) dosage units, by imprisonment for not more than eight (8) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both.

              (D)  If ten (10) or more grams or twenty (20) or more dosage units, but less than thirty (30) grams or forty (40) dosage units, by imprisonment for not less than three (3) years nor more than twenty (20) years or a fine of not more than Five Hundred Thousand Dollars ($500,000.00), or both.

          (2)  (A)  Marijuana and synthetic cannabinoids:

                   1.  If thirty (30) grams or less of marijuana or ten (10) grams or less of synthetic cannabinoids, by a fine of not less than One Hundred Dollars ($100.00) nor more than Two Hundred Fifty Dollars ($250.00).  The provisions of this paragraph (2)(A) may be enforceable by summons if the offender provides proof of identity satisfactory to the arresting officer and gives written promise to appear in court satisfactory to the arresting officer, as directed by the summons.  A second conviction under this section within two (2) years is a misdemeanor punishable by a fine of Two Hundred Fifty Dollars ($250.00), not more than sixty (60) days in the county jail, and mandatory participation in a drug education program approved by the Division of Alcohol and Drug Abuse of the State Department of Mental Health, unless the court enters a written finding that a drug education program is inappropriate.  A third or subsequent conviction under this paragraph (2)(A) within two (2) years is a misdemeanor punishable by a fine of not less than Two Hundred Fifty Dollars ($250.00) nor more than One Thousand Dollars ($1,000.00) and confinement for not more than six (6) months in the county jail.

     Upon a first or second conviction under this paragraph (2)(A), the courts shall forward a report of the conviction to the Mississippi Bureau of Narcotics which shall make and maintain a private, nonpublic record for a period not to exceed two (2) years from the date of conviction.  The private, nonpublic record shall be solely for the use of the courts in determining the penalties which attach upon conviction under this paragraph (2)(A) and shall not constitute a criminal record for the purpose of private or administrative inquiry and the record of each conviction shall be expunged at the end of the period of two (2) years following the date of such conviction;

                   2.  Additionally, a person who is the operator of a motor vehicle, who possesses on his person or knowingly keeps or allows to be kept in a motor vehicle within the area of the vehicle normally occupied by the driver or passengers, more than one (1) gram, but not more than thirty (30) grams of marijuana or not more than ten (10) grams of synthetic cannabinoids is guilty of a misdemeanor and, upon conviction, may be fined not more than One Thousand Dollars ($1,000.00) or confined for not more than ninety (90) days in the county jail, or both.  For the purposes of this subsection, such area of the vehicle shall not include the trunk of the motor vehicle or the areas not normally occupied by the driver or passengers if the vehicle is not equipped with a trunk.  A utility or glove compartment shall be deemed to be within the area occupied by the driver and passengers.

               (B)  Marijuana:

                   1.  If more than thirty (30) grams but less than two hundred fifty (250) grams, by a fine of not more than One Thousand Dollars ($1,000.00), or confinement in the county jail for not more than one (1) year, or both; or by a fine of not more than Three Thousand Dollars ($3,000.00), or imprisonment in the custody of the Department of Corrections for not more than three (3) years, or both;

                   2.  If two hundred fifty (250) or more grams but less than five hundred (500) grams, by imprisonment for not less than two (2) years nor more than eight (8) years or by a fine of not more than Fifty Thousand Dollars ($50,000.00), or both;

                    3.  If five hundred (500) or more grams but less than one (1) kilogram, by imprisonment for not less than four (4) years nor more than sixteen (16) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both;

                   4.  If one (1) kilogram or more but less than five (5) kilograms, by imprisonment for not less than six (6) years nor more than twenty-four (24) years or a fine of not more than Five Hundred Thousand Dollars ($500,000.00), or both;

                   5.  If five (5) kilograms or more, by imprisonment for not less than ten (10) years nor more than thirty (30) years or a fine of not more than One Million Dollars ($1,000,000.00), or both.

              (C)  Synthetic cannabinoids:

                   1.  If more than ten (10) grams but less than twenty (20) grams, by a fine of not more than One Thousand Dollars ($1,000.00), or confinement in the county jail for not more than one (1) year, or both; or by a fine of not more than Three Thousand Dollars ($3,000.00), or imprisonment in the custody of the Department of Corrections for not more than three (3) years, or both;

                   2.  If twenty (20) or more grams but less than forty (40) grams, by imprisonment for not less than two (2) years nor more than eight (8) years or by a fine of not more than Fifty Thousand Dollars ($50,000.00), or both;

                   3.  If forty (40) or more grams but less than two hundred (200) grams, by imprisonment for not less than four (4) years nor more than sixteen (16) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both;

                   4.  If two hundred (200) or more grams, by imprisonment for not less than six (6) years nor more than twenty-four (24) years or a fine of not more than Five Hundred Thousand Dollars ($500,000.00), or both.

          (3)  A controlled substance classified in Schedule III, IV or V as set out in Sections 41-29-117 through 41-29-121, upon conviction, may be punished as follows:

              (A)  If less than fifty (50) grams or less than one hundred (100) dosage units, the offense is a misdemeanor and punishable by not more than one (1) year or a fine of not more than One Thousand Dollars ($1,000.00), or both.

              (B)  If fifty (50) or more grams or one hundred (100) or more dosage units, but less than one hundred fifty (150) grams or five hundred (500) dosage units, by imprisonment for not less than one (1) year nor more than four (4) years or a fine of not more than Ten Thousand Dollars ($10,000.00), or both.

              (C)  If one hundred fifty (150) or more grams or five hundred (500) or more dosage units, but less than three hundred (300) grams or one thousand (1,000) dosage units, by imprisonment for not less than two (2) years nor more than eight (8) years or a fine of not more than Fifty Thousand Dollars ($50,000.00), or both.

              (D)  If three hundred (300) or more grams or one thousand (1,000) or more dosage units, but less than five hundred (500) grams or two thousand five hundred (2,500) dosage units, by imprisonment for not less than four (4) years nor more than sixteen (16) years or a fine of not more than Two Hundred Fifty Thousand Dollars ($250,000.00), or both.

     (d)  Paraphernalia.  (1)  Except as otherwise provided under subsection (i) of this section for actions that are lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or actions that are lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder, it is unlawful for a person who is not authorized by the State Board of Medical Licensure, State Board of Pharmacy, or other lawful authority to use, or to possess with intent to use, paraphernalia to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale or otherwise introduce into the human body a controlled substance in violation of the Uniform Controlled Substances Law.  Any person who violates this subsection (d)(1) is guilty of a misdemeanor and, upon conviction, may be confined in the county jail for not more than six (6) months, or fined not more than Five Hundred Dollars ($500.00), or both; however, no person shall be charged with a violation of this subsection when such person is also charged with the possession of thirty (30) grams or less of marijuana under subsection (c)(2)(A) of this section.

          (2)  It is unlawful for any person to deliver, sell, possess with intent to deliver or sell, or manufacture with intent to deliver or sell, paraphernalia, knowing, or under circumstances where one reasonably should know, that it will be used to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale, or otherwise introduce into the human body a controlled substance in violation of the Uniform Controlled Substances Law.  Except as provided in subsection (d)(3), a person who violates this subsection (d)(2) is guilty of a misdemeanor and, upon conviction, may be confined in the county jail for not more than six (6) months, or fined not more than Five Hundred Dollars ($500.00), or both.

          (3)  Any person eighteen (18) years of age or over who violates subsection (d)(2) of this section by delivering or selling paraphernalia to a person under eighteen (18) years of age who is at least three (3) years his junior is guilty of a misdemeanor and, upon conviction, may be confined in the county jail for not more than one (1) year, or fined not more than One Thousand Dollars ($1,000.00), or both.

          (4)  It is unlawful for any person to place in any newspaper, magazine, handbill, or other publication any advertisement, knowing, or under circumstances where one reasonably should know, that the purpose of the advertisement, in whole or in part, is to promote the sale of objects designed or intended for use as paraphernalia.  Any person who violates this subsection is guilty of a misdemeanor and, upon conviction, may be confined in the county jail for not more than six (6) months, or fined not more than Five Hundred Dollars ($500.00), or both.

     (e)  It shall be unlawful for any physician practicing medicine in this state to prescribe, dispense or administer any amphetamine or amphetamine-like anorectics and/or central nervous system stimulants classified in Schedule II, pursuant to Section 41-29-115, for the exclusive treatment of obesity, weight control or weight loss.  Any person who violates this subsection, upon conviction, is guilty of a misdemeanor and may be confined for a period not to exceed six (6) months, or fined not more than One Thousand Dollars ($1,000.00), or both.

     (f)  Trafficking.  (1)  Any person trafficking in controlled substances shall be guilty of a felony and, upon conviction, shall be imprisoned for a term of not less than ten (10) years nor more than forty (40) years and shall be fined not less than Five Thousand Dollars ($5,000.00) nor more than One Million Dollars ($1,000,000.00).  The ten-year mandatory sentence shall not be reduced or suspended.  The person shall not be eligible for probation or parole, the provisions of Sections 41-29-149, 47-5-139, 47-7-3 and 47-7-33, to the contrary notwithstanding.

          (2)  "Trafficking in controlled substances" as used herein means:

               (A)  A violation of subsection (a) of this section involving thirty (30) or more grams or forty (40) or more dosage units of a Schedule I or II controlled substance except marijuana and synthetic cannabinoids;

              (B)  A violation of subsection (a) of this section involving five hundred (500) or more grams or two thousand five hundred (2,500) or more dosage units of a Schedule III, IV or V controlled substance;

               (C)  A violation of subsection (c) of this section involving thirty (30) or more grams or forty (40) or more dosage units of a Schedule I or II controlled substance except marijuana and synthetic cannabinoids;

              (D)  A violation of subsection (c) of this section involving five hundred (500) or more grams or two thousand five hundred (2,500) or more dosage units of a Schedule III, IV or V controlled substance; or

              (E)  A violation of subsection (a) of this section involving one (1) kilogram or more of marijuana or two hundred (200) grams or more of synthetic cannabinoids.

     (g)  Aggravated trafficking.  Any person trafficking in Schedule I or II controlled substances, except marijuana and synthetic cannabinoids, of two hundred (200) grams or more shall be guilty of aggravated trafficking and, upon conviction, shall be sentenced to a term of not less than twenty-five (25) years nor more than life in prison and shall be fined not less than Five Thousand Dollars ($5,000.00) nor more than One Million Dollars ($1,000,000.00).  The twenty-five-year sentence shall be a mandatory sentence and shall not be reduced or suspended.  The person shall not be eligible for probation or parole, the provisions of Sections 41-29-149, 47-5-139, 47-7-3 and 47-7-33, to the contrary notwithstanding.

     (h)  Sentence mitigation.  (1)  Notwithstanding any provision of this section, a person who has been convicted of an offense under this section that requires the judge to impose a prison sentence which cannot be suspended or reduced and is ineligible for probation or parole may, at the discretion of the court, receive a sentence of imprisonment that is no less than twenty-five percent (25%) of the sentence prescribed by the applicable statute.  In considering whether to apply the departure from the sentence prescribed, the court shall conclude that:

              (A)  The offender was not a leader of the criminal enterprise;

              (B)  The offender did not use violence or a weapon during the crime;

              (C)  The offense did not result in a death or serious bodily injury of a person not a party to the criminal enterprise; and

              (D)  The interests of justice are not served by the imposition of the prescribed mandatory sentence.

     The court may also consider whether information and assistance were furnished to a law enforcement agency, or its designee, which, in the opinion of the trial judge, objectively should or would have aided in the arrest or prosecution of others who violate this subsection.  The accused shall have adequate opportunity to develop and make a record of all information and assistance so furnished.

          (2)  If the court reduces the prescribed sentence pursuant to this subsection, it must specify on the record the circumstances warranting the departure.

     (i)  This section does not apply to any of the actions that are lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or actions that are lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder.

     SECTION 11.  Section 41-29-141, Mississippi Code of 1972, is amended as follows:

     41-29-141.  It is unlawful for any person:

          (1)  Who is subject to Section 41-29-125 to distribute or dispense a controlled substance in violation of Section 41-29-137;

          (2)  Who is a registrant under Section 41-29-125 to manufacture a controlled substance not authorized by his registration, or to distribute or dispense a controlled substance not authorized by his registration to another registrant or other authorized person;

          (3)  To refuse or fail to make, keep or furnish any record, notification, order form, statement, invoice or information required under this article;

          (4)  To refuse a lawful entry into any premises for any inspection authorized by this article; or

          (5)  Knowingly to keep or maintain any store, shop, warehouse, dwelling, building, vehicle, boat, aircraft, or other structure or place, which is resorted to by persons using controlled substances in violation of this article for the purpose of using these substances, or which is used for keeping or selling them in violation of this article. 

     Any person who violates this section shall, with respect to such violation, be subject to a civil penalty payable to the State of Mississippi of not more than Twenty-five Thousand Dollars ($25,000.00). 

     In addition to the civil penalty provided in the preceding paragraph, any person who knowingly or intentionally violates this section shall be guilty of a crime and upon conviction thereof may be confined for a period of not more than one (1) year or fined not more than One Thousand Dollars ($1,000.00), or both.

     This section does not apply to any of the actions that are lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or actions that are lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder.

     SECTION 12.  Section 41-29-143, Mississippi Code of 1972, is amended as follows:

     41-29-143.  It is unlawful for any person knowingly or intentionally:

          (1)  To distribute as a registrant a controlled substance classified in Schedule I or II, as set out in Sections 41-29-113 and 41-29-115, except pursuant to an order form as required by Section 41-29-135;

          (2)  To use in the course of the manufacture or distribution of a controlled substance a registration number which is fictitious, revoked, suspended, or issued to another person; 

          (3)  To furnish false or fraudulent material information in, or omit any material information from, any application, report, or other document required to be kept or filed under this article, or any record required to be kept by this article; or

          (4)  To make, distribute, or possess any punch, die, plate, stone, or other thing designed to print, imprint, or reproduce the trademark, trade name, or other identifying mark, imprint or device of another or any likeness of any of the foregoing upon any drug or container or labeling thereof so as to render the drug a counterfeit substance. 

     Any person who violates this section is guilty of a crime and upon conviction may be confined for not more than one (1) year or fined not more than One Thousand Dollars ($1,000.00) or both.    This section does not apply to any of the actions that are lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or any of the actions that are lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder.

     SECTION 13.  Section 59-23-7, Mississippi Code of 1972, is amended as follows:

     59-23-7.  (1)  It is unlawful for any person to operate a watercraft on the public waters of this state who:

          (a)  Is under the influence of intoxicating liquor;

          (b)  Is under the influence of any other substance which has impaired such person's ability to operate a watercraft; or

          (c)  Has eight one-hundredths percent (.08%) or more by weight volume of alcohol in the person's blood based upon milligrams of alcohol per one hundred (100) cubic centimeters of blood as shown by a chemical analysis of such person's breath, blood or urine administered as authorized by this chapter.

     (2)  (a)  Upon conviction of any person for the first offense of violating subsection (1) of this section where chemical tests provided for under Section 59-23-5 were given, or where chemical test results are not available, such person shall be fined not less than Two Hundred Fifty Dollars ($250.00) nor more than One Thousand Dollars ($1,000.00), or imprisoned for not more than twenty-four (24) hours in jail, or both; and the court shall order such person to attend and complete a boating safety education course developed by the Department of Wildlife, Fisheries and Parks.

          (b)  Upon any second conviction of any person violating subsection (1) of this section, the offenses being committed within a period of five (5) years, the person shall be fined not less than Six Hundred Dollars ($600.00) nor more than One Thousand Dollars ($1,000.00) and shall be imprisoned not less than forty-eight (48) consecutive hours nor more than one (1) year or sentenced to community service work for not less than ten (10) days nor more than one (1) year.  The court shall order the person not to operate a watercraft for one (1) year.

          (c)  For any third conviction of any person violating subsection (1) of this section, the offenses being committed within a period of five (5) years, the person shall be fined not less than Eight Hundred Dollars ($800.00) nor more than One Thousand Dollars ($1,000.00) and shall be imprisoned not less than thirty (30) days nor more than one (1) year.  The court shall order the person not to operate a watercraft for two (2) years.

          (d)  Any fourth or subsequent violation of subsection (1) of this section shall be a felony offense and, upon conviction, the offenses being committed within a period of five (5) years, the person shall be fined not less than Two Thousand Dollars ($2,000.00) nor more than Five Thousand Dollars ($5,000.00) and shall be imprisoned not less than ninety (90) days nor more than five (5) years in the custody of the Department of Corrections.  The court shall order the person not to operate a watercraft for three (3) years.

     (3)  Any person convicted of operating any watercraft in violation of subsection (1) of this section where the person (a) refused a law enforcement officer's request to submit to a chemical test, or (b) was unconscious at the time of a chemical test and refused to consent to the introduction of the results of such test in any prosecution, shall be punished consistent with the penalties prescribed herein for persons submitting to the test and the court shall order the person not to operate a watercraft for the time periods specified in subsection (2) of this section.

     (4)  Any person who operates any watercraft in violation of the provisions of subsection (1) of this section and who in a negligent manner causes the death of another or mutilates, disfigures, permanently disables or destroys the tongue, eye, lip, nose or any other member or limb of another shall, upon conviction, be guilty of a felony and shall be committed to the custody of the Department of Corrections for a period of time not to exceed ten (10) years.

     (5)  Upon conviction of any violation of subsection (1) of this section, the judge shall cause a copy of the citation and any other pertinent documents concerning the conviction to be sent immediately to the Mississippi Department of Wildlife, Fisheries and Parks and the Department of Marine Resources.  A copy of the citation or other pertinent documents, having been attested as true and correct by the Director of the Mississippi Department of Wildlife, Fisheries and Parks, or his designee, or the Director of the Department of Marine Resources, or his designee, shall be sufficient proof of the conviction for purposes of determining the enhanced penalty for any subsequent convictions of violations of subsection (1) of this section.

     (6)  The provisions of this section are fully applicable to any person who is under the influence of medical cannabis that is lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or marijuana that is lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder which has impaired the person's ability to operate a watercraft.

     SECTION 14.  Section 63-11-30, Mississippi Code of 1972, is amended as follows:

     63-11-30.  (1)  It is unlawful for a person to drive or otherwise operate a vehicle within this state if the person:

          (a)  Is under the influence of intoxicating liquor;

          (b)  Is under the influence of any other substance that has impaired the person's ability to operate a motor vehicle;

          (c)  Is under the influence of any drug or controlled substance, the possession of which is unlawful under the Mississippi Controlled Substances Law; or

          (d)  Has an alcohol concentration in the person's blood, based upon grams of alcohol per one hundred (100) milliliters of blood, or grams of alcohol per two hundred ten (210) liters of breath, as shown by a chemical analysis of the person's breath, blood or urine administered as authorized by this chapter, of:

              (i)  Eight one-hundredths percent (.08%) or more for a person who is above the legal age to purchase alcoholic beverages under state law;

               (ii)  Two one-hundredths percent (.02%) or more for a person who is below the legal age to purchase alcoholic beverages under state law; or

              (iii)  Four one-hundredths percent (.04%) or more for a person operating a commercial motor vehicle.

     (2)  Except as otherwise provided in subsection (3) of this section (Zero Tolerance for Minors):

          (a)  First offense DUI.  (i)  Upon conviction of any person for the first offense of violating subsection (1) of this section where chemical tests under Section 63-11-5 were given, or where chemical test results are not available, the person shall be fined not less than Two Hundred Fifty Dollars ($250.00) nor more than One Thousand Dollars ($1,000.00), or imprisoned for not more than forty-eight (48) hours in jail, or both; the court shall order the person to attend and complete an alcohol safety education program as provided in Section 63-11-32 within six (6) months of sentencing.  The court may substitute attendance at a victim impact panel instead of forty-eight (48) hours in jail.

              (ii)  Suspension of commercial driving privileges is governed by Section 63-1-216.

              (iii)  A qualifying first offense may be nonadjudicated by the court under subsection (14) of this section.  The holder of a commercial driver's license or a commercial learning permit at the time of the offense is ineligible for nonadjudication.

              (iv)  Eligibility for an interlock-restricted license is governed by Section 63-11-31 and suspension of regular driving privileges is governed by Section 63-11-23.

          (b)  Second offense DUI.  (i)  Upon any second conviction of any person violating subsection (1) of this section, the offenses being committed within a period of five (5) years, the person shall be guilty of a misdemeanor, fined not less than Six Hundred Dollars ($600.00) nor more than One Thousand Five Hundred Dollars ($1,500.00), shall be imprisoned not less than five (5) days nor more than six (6) months and sentenced to community service work for not less than ten (10) days nor more than six (6) months.  The minimum penalties shall not be suspended or reduced by the court and no prosecutor shall offer any suspension or sentence reduction as part of a plea bargain.

              (ii)  Suspension of commercial driving privileges is governed by Section 63-1-216.

              (iii)  Eligibility for an interlock-restricted license is governed by Section 63-11-31 and suspension of regular driving privileges is governed by Section 63-11-23.

          (c)  Third offense DUI.  (i)  For a third conviction of a person for violating subsection (1) of this section, the offenses being committed within a period of five (5) years, the person shall be guilty of a felony and fined not less than Two Thousand Dollars ($2,000.00) nor more than Five Thousand Dollars ($5,000.00), and shall serve not less than one (1) year nor more than five (5) years in the custody of the Department of Corrections.  For any offense that does not result in serious injury or death to any person, the sentence of incarceration may be served in the county jail rather than in the State Penitentiary at the discretion of the circuit court judge.  The minimum penalties shall not be suspended or reduced by the court and no prosecutor shall offer any suspension or sentence reduction as part of a plea bargain.

              (ii)  The suspension of commercial driving privileges is governed by Section 63-1-216.

              (iii)  The suspension of regular driving privileges is governed by Section 63-11-23.

          (d)  Fourth and subsequent offense DUI.  (i)  For any fourth or subsequent conviction of a violation of subsection (1) of this section, without regard to the time period within which the violations occurred, the person shall be guilty of a felony and fined not less than Three Thousand Dollars ($3,000.00) nor more than Ten Thousand Dollars ($10,000.00), and shall serve not less than two (2) years nor more than ten (10) years in the custody of the Department of Corrections.

              (ii)  The suspension of commercial driving privileges is governed by Section 63-1-216.

              (iii)  A person convicted of a fourth or subsequent offense is ineligible to exercise the privilege to operate a motor vehicle that is not equipped with an ignition-interlock device for ten (10) years.

          (e)  Any person convicted of a second or subsequent violation of subsection (1) of this section shall receive an in-depth diagnostic assessment, and if as a result of the assessment is determined to be in need of treatment for alcohol or drug abuse, the person must successfully complete treatment at a program site certified by the Department of Mental Health.  Each person who receives a diagnostic assessment shall pay a fee representing the cost of the assessment.  Each person who participates in a treatment program shall pay a fee representing the cost of treatment.

          (f)  The use of ignition-interlock devices is governed by Section 63-11-31.

     (3)  Zero Tolerance for Minors.  (a)  This subsection shall be known and may be cited as Zero Tolerance for Minors.  The provisions of this subsection shall apply only when a person under the age of twenty-one (21) years has a blood alcohol concentration of two one-hundredths percent (.02%) or more, but lower than eight one-hundredths percent (.08%).  If the person's blood alcohol concentration is eight one-hundredths percent (.08%) or more, the provisions of subsection (2) shall apply.

          (b)  (i)  A person under the age of twenty-one (21) is eligible for nonadjudication of a qualifying first offense by the court pursuant to subsection (14) of this section.

              (ii)  Upon conviction of any person under the age of twenty-one (21) years for the first offense of violating subsection (1) of this section where chemical tests provided for under Section 63-11-5 were given, or where chemical test results are not available, the person shall be fined Two Hundred Fifty Dollars ($250.00); the court shall order the person to attend and complete an alcohol safety education program as provided in Section 63-11-32 within six (6) months.  The court may also require attendance at a victim impact panel.

          (c)  A person under the age of twenty-one (21) years who is convicted of a second violation of subsection (1) of this section, the offenses being committed within a period of five (5) years, shall be fined not more than Five Hundred Dollars ($500.00).

          (d)  A person under the age of twenty-one (21) years who is convicted of a third or subsequent violation of subsection (1) of this section, the offenses being committed within a period of five (5) years, shall be fined not more than One Thousand Dollars ($1,000.00).

          (e)  License suspension is governed by Section 63-11-23 and ignition interlock is governed by Section 63-11-31.

          (f)  Any person under the age of twenty-one (21) years convicted of a third or subsequent violation of subsection (1) of this section must complete treatment of an alcohol or drug abuse program at a site certified by the Department of Mental Health.

     (4)  DUI test refusal.  In addition to the other penalties provided in this section, every person refusing a law enforcement officer's request to submit to a chemical test of the person's breath as provided in this chapter, or who was unconscious at the time of a chemical test and refused to consent to the introduction of the results of the test in any prosecution, shall suffer an additional administrative suspension of driving privileges as set forth in Section 63-11-23.

     (5)  Aggravated DUI.  (a)  Every person who operates any motor vehicle in violation of the provisions of subsection (1) of this section and who in a negligent manner causes the death of another or mutilates, disfigures, permanently disables or destroys the tongue, eye, lip, nose or any other limb, organ or member of another shall, upon conviction, be guilty of a separate felony for each victim who suffers death, mutilation, disfigurement or other injury and shall be committed to the custody of the State Department of Corrections for a period of time of not less than five (5) years and not to exceed twenty-five (25) years for each death, mutilation, disfigurement or other injury, and the imprisonment for the second or each subsequent conviction, in the discretion of the court, shall commence either at the termination of the imprisonment for the preceding conviction or run concurrently with the preceding conviction.  Any person charged with causing the death of another as described in this subsection shall be required to post bail before being released after arrest.

          (b)  A holder of a commercial driver's license who is convicted of operating a commercial motor vehicle with an alcohol concentration of eight one-hundredths percent (.08%) or more shall be guilty of a felony and shall be committed to the custody of the Department of Corrections for not less than two (2) years and not more than ten (10) years.

          (c)  The court shall order an ignition-interlock restriction on the offender's privilege to drive as a condition of probation or post-release supervision not to exceed five (5) years unless a longer restriction is required under other law.  The ignition-interlock restriction shall not be applied to commercial license privileges until the driver serves the full disqualification period required by Section 63-1-216.

     (6)  DUI citations.  (a)  Upon conviction of a violation of subsection (1) of this section, the trial judge shall sign in the place provided on the traffic ticket, citation or affidavit stating that the person arrested either employed an attorney or waived his right to an attorney after having been properly advised.  If the person arrested employed an attorney, the name, address and telephone number of the attorney shall be written on the ticket, citation or affidavit.  The court clerk must immediately send a copy of the traffic ticket, citation or affidavit, and any other pertinent documents concerning the conviction or other order of the court, to the Department of Public Safety as provided in Section 63-11-37.

          (b)  A copy of the traffic ticket, citation or affidavit and any other pertinent documents, having been attested as true and correct by the Commissioner of Public Safety, or his designee, shall be sufficient proof of the conviction for purposes of determining the enhanced penalty for any subsequent convictions of violations of subsection (1) of this section.  The Department of Public Safety shall maintain a central database for verification of prior offenses and convictions.

     (7)  Out-of-state prior convictions.  Convictions in another state, territory or possession of the United States, or under the law of a federally recognized Native American tribe, of violations for driving or operating a vehicle while under the influence of an intoxicating liquor or while under the influence of any other substance that has impaired the person's ability to operate a motor vehicle occurring within five (5) years before an offense shall be counted for the purposes of determining if a violation of subsection (1) of this section is a second, third, fourth or subsequent offense and the penalty that shall be imposed upon conviction for a violation of subsection (1) of this section.

     (8)  Charging of subsequent offenses.  (a)  For the purposes of determining how to impose the sentence for a second, third, fourth or subsequent conviction under this section, the affidavit or indictment shall not be required to enumerate previous convictions.  It shall only be necessary that the affidavit or indictment states the number of times that the defendant has been convicted and sentenced within the past five (5) years for a second or third offense, or without a time limitation for a fourth or subsequent offense, under this section to determine if an enhanced penalty shall be imposed.  The amount of fine and imprisonment imposed in previous convictions shall not be considered in calculating offenses to determine a second, third, fourth or subsequent offense of this section.

          (b)  Before a defendant enters a plea of guilty to an offense under this section, law enforcement must submit certification to the prosecutor that the defendant's driving record, the confidential registry and National Crime Information Center record have been searched for all prior convictions, nonadjudications, pretrial diversions and arrests for driving or operating a vehicle while under the influence of an intoxicating liquor or while under the influence of any other substance that has impaired the person's ability to operate a motor vehicle.  The results of the search must be included in the certification.

     (9)  License eligibility for underage offenders.  A person who is under the legal age to obtain a license to operate a motor vehicle at the time of the offense and who is convicted under this section shall not be eligible to receive a driver's license until the person reaches the age of eighteen (18) years.

     (10)  License suspensions and restrictions to run consecutively.  Suspension or restriction of driving privileges for any person convicted of or nonadjudicated for violations of subsection (1) of this section shall run consecutively to and not concurrently with any other administrative license suspension.

     (11)  Ignition interlock.  If the court orders installation and use of an ignition-interlock device as provided in Section 63-11-31 for every vehicle operated by a person convicted or nonadjudicated under this section, each device shall be installed, maintained and removed as provided in Section 63-11-31.

     (12)  DUI child endangerment.  A person over the age of twenty-one (21) who violates subsection (1) of this section while transporting in a motor vehicle a child under the age of sixteen (16) years is guilty of the separate offense of endangering a child by driving under the influence of alcohol or any other substance which has impaired the person's ability to operate a motor vehicle.  The offense of endangering a child by driving under the influence of alcohol or any other substance which has impaired the person's ability to operate a motor vehicle shall not be merged with an offense of violating subsection (1) of this section for the purposes of prosecution and sentencing.  An offender who is convicted of a violation of this subsection shall be punished as follows:

          (a)  A person who commits a violation of this subsection which does not result in the serious injury or death of a child and which is a first conviction shall be guilty of a misdemeanor and, upon conviction, shall be fined not more than One Thousand Dollars ($1,000.00) or shall be imprisoned for not more than twelve (12) months, or both;

          (b)  A person who commits a violation of this subsection which does not result in the serious injury or death of a child and which is a second conviction shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than One Thousand Dollars ($1,000.00) nor more than Five Thousand Dollars ($5,000.00) or shall be imprisoned for one (1) year, or both;

          (c)  A person who commits a violation of this subsection which does not result in the serious injury or death of a child and which is a third or subsequent conviction shall be guilty of a felony and, upon conviction, shall be fined not less than Ten Thousand Dollars ($10,000.00) or shall be imprisoned for not less than one (1) year nor more than five (5) years, or both; and

          (d)  A person who commits a violation of this subsection which results in the serious injury or death of a child, without regard to whether the offense was a first, second, third or subsequent offense, shall be guilty of a felony and, upon conviction, shall be punished by a fine of not less than Ten Thousand Dollars ($10,000.00) and shall be imprisoned for not less than five (5) years nor more than twenty-five (25) years.

     (13)  Expunction.  (a)  Any person convicted under subsection (2) or (3) of this section of a first offense of driving under the influence and who was not the holder of a commercial driver's license or a commercial learning permit at the time of the offense may petition the circuit court of the county in which the conviction was had for an order to expunge the record of the conviction at least five (5) years after successful completion of all terms and conditions of the sentence imposed for the conviction.  Expunction under this subsection will only be available to a person:

              (i)  Who has successfully completed all terms and conditions of the sentence imposed for the conviction;

              (ii)  Who did not refuse to submit to a test of his blood or breath;

               (iii)  Whose blood alcohol concentration tested below sixteen one-hundredths percent (.16%) if test results are available;

              (iv)  Who has not been convicted of and does not have pending any other offense of driving under the influence;

              (v)  Who has provided the court with justification as to why the conviction should be expunged; and

              (vi)  Who has not previously had a nonadjudication or expunction of a violation of this section.

          (b)  A person is eligible for only one (1) expunction under this subsection, and the Department of Public Safety shall maintain a permanent confidential registry of all cases of expunction under this subsection for the sole purpose of determining a person's eligibility for expunction, for nonadjudication, or as a first offender under this section.

          (c)  The court in its order of expunction shall state in writing the justification for which the expunction was granted and forward the order to the Department of Public Safety within five (5) days of the entry of the order.

     (14)  Nonadjudication.  (a)  For the purposes of this chapter, "nonadjudication" means that the court withholds adjudication of guilt and sentencing, either at the conclusion of a trial on the merits or upon the entry of a plea of guilt by a defendant, and places the defendant in a nonadjudication program conditioned upon the successful completion of the requirements imposed by the court under this subsection.

          (b)  A person is eligible for nonadjudication of an offense under this Section 63-11-30 only one (1) time under any provision of a law that authorizes nonadjudication and only for an offender:

               (i)  Who has successfully completed all terms and conditions imposed by the court after placement of the defendant in a nonadjudication program;

              (ii)  Who was not the holder of a commercial driver's license or a commercial learning permit at the time of the offense;

               (iii)  Who has not previously been convicted of and does not have pending any former or subsequent charges under this section; and

              (iv)  Who has provided the court with justification as to why nonadjudication is appropriate.

          (c)  Nonadjudication may be initiated upon the filing of a petition for nonadjudication or at any stage of the proceedings in the discretion of the court; the court may withhold adjudication of guilt, defer sentencing, and upon the agreement of the offender to participate in a nonadjudication program, enter an order imposing requirements on the offender for a period of court supervision before the order of nonadjudication is entered.  Failure to successfully complete a nonadjudication program subjects the person to adjudication of the charges against him and to imposition of all penalties previously withheld due to entrance into a nonadjudication program.  The court shall immediately inform the commissioner of the conviction as required in Section 63-11-37.

              (i)  The court shall order the person to:

                   1.  Pay the nonadjudication fee imposed under Section 63-11-31 if applicable;

                   2.  Pay all fines, penalties and assessments that would have been imposed for conviction;

                   3.  Attend and complete an alcohol safety education program as provided in Section 63-11-32 within six (6) months of the date of the order;

                   4.  a.  If the court determines that the person violated this section with respect to alcohol or intoxicating liquor, the person must install an ignition-interlock device on every motor vehicle operated by the person, obtain an interlock-restricted license, and maintain that license for one hundred twenty (120) days or suffer a one-hundred-twenty-day suspension of the person's regular driver's license, during which time the person must not operate any vehicle.

                        b.  If the court determines that the person violated this section by operating a vehicle when under the influence of a substance other than alcohol that has impaired the person's ability to operate a motor vehicle, including any drug or controlled substance which is unlawful to possess under the Mississippi Controlled Substances Law, the person must submit to a one-hundred-twenty-day period of a nonadjudication program that includes court-ordered drug testing at the person's own expense not less often than every thirty (30) days, during which time the person may drive if compliant with the terms of the program, or suffer a one-hundred-twenty-day suspension of the person's regular driver's license, during which time the person will not operate any vehicle.

              (ii)  Other conditions that may be imposed by the court include, but are not limited to, alcohol or drug screening, or both, proof that the person has not committed any other traffic violations while under court supervision, proof of immobilization or impoundment of vehicles owned by the offender if required, and attendance at a victim-impact panel.

          (d)  The court may enter an order of nonadjudication only if the court finds, after a hearing or after ex parte examination of reliable documentation of compliance, that the offender has successfully completed all conditions imposed by law and previous orders of the court.  The court shall retain jurisdiction over cases involving nonadjudication for a period of not more than two (2) years.

          (e)  (i)  The clerk shall immediately forward a record of every person placed in a nonadjudication program and of every nonadjudication order to the Department of Public Safety for inclusion in the permanent confidential registry of all cases that are nonadjudicated under this subsection (14).

              (ii)  Judges, clerks and prosecutors involved in the trial of implied consent violations and law enforcement officers involved in the issuance of citations for implied consent violations shall have secure online access to the confidential registry for the purpose of determining whether a person has previously been the subject of a nonadjudicated case and 1. is therefore ineligible for another nonadjudication; 2. is ineligible as a first offender for a violation of this section; or 3. is ineligible for expunction of a conviction of a violation of this section.

              (iii)  The Driver Services Bureau of the department shall have access to the confidential registry for the purpose of determining whether a person is eligible for a form of license not restricted to operating a vehicle equipped with an ignition-interlock device.

              (iv)  The Mississippi Alcohol Safety Education Program shall have secure online access to the confidential registry for research purposes only.

     (15)  The provisions of this section are fully applicable to any person who is under the influence of medical cannabis that is lawful under the Mississippi Medical Cannabis Act and in compliance with rules and regulations adopted thereunder or marijuana that is lawful under the Mississippi Retail Marijuana Act and in compliance with rules and regulations adopted thereunder which has impaired the person's ability to operate a motor vehicle.

     SECTION 15.  This act shall take effect and be in force from and after July 1, 2023.

     SECTION 16.  This act shall take effect and be in force from and after July 1, 2023.