Senate Amendments to House Bill No. 1676

 

TO THE CLERK OF THE HOUSE:

 

  THIS IS TO INFORM YOU THAT THE SENATE HAS ADOPTED THE AMENDMENTS SET OUT BELOW:

 

 

AMENDMENT NO. 1

 

     Amend by striking all after the enacting clause and inserting in lieu thereof the following:

 


     SECTION 1.  Section 69-25-201, Mississippi Code of 1972, is amended as follows:

     69-25-201.  This article shall be known as the "Mississippi Intoxicating Hemp * * * Cultivation Regulation Act."  The regulation of hemp cultivation and processing shall be governed exclusively by the provisions of the Mississippi Intoxicating Hemp * * * Cultivation Regulation Act.  A municipality, county or other political subdivision of this state shall not enact, adopt or enforce a rule, ordinance, order, resolution or other regulation that allows, prohibits or penalizes the cultivation, production or processing of hemp in this state.

     SECTION 2.  Section 69-25-203, Mississippi Code of 1972, is amended as follows:

     69-25-203.  For purposes of this article, the following words and phrases shall have the meanings set forth below unless the context clearly indicates otherwise:

 * * *  (a)  "Bureau of Plant Industry" means a division of the Mississippi Department of Agriculture and Commerce created under the provisions of Section 69‑25‑3.

          ( * * *ba)  "Business entity" means a nonnatural person and includes nonprofit and for-profit corporations, partnerships, limited liability corporations, and other legal entities recognized by law.

          ( * * *cb)  "Commissioner" means the Commissioner of Agriculture and Commerce of the State of Mississippi.  Where applicable under the provisions of this article, "commissioner" shall include the commissioner's designee.

          ( * * *dc)  "Delta-9-tetrahydrocannabinol" means the sum of the percentage by weight of tetrahydrocannabinol acid multiplied by eight hundred seventy-seven thousandths (0.877) plus the percentage by weight of delta-9-tetrahydrocannabinol.

          ( * * *ed)  "Department" means the Mississippi Department of Agriculture and Commerce.

          ( * * *fe)  "Grower" means a person, business entity, joint venture or cooperative that cultivates, grows or harvests hemp.

          ( * * *gf)  "Hemp" means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts and salts of isomers, whether growing or not, with a delta-9-tetrahydrocannabinol (THC) concentration of not more than three-tenths percent (0.3%) on a dry weight basis that is grown or processed under this article.

          (g)  "Intoxicating hemp product" means a finished product intended for human or animal consumption containing any hemp, including naturally occurring cannabinoids, compounds, extracts, isolates, or resins, and that contains greater than five (5) milligrams of total THC per container; but does not exceed ten (10) milligrams of total THC per serving and one hundred (100) milligrams per container.

          (h)  "Legal description of land" means Global Position System coordinates and shall also include the metes and bounds to include township, range, and section for the location in which hemp is grown.

          (i)  "Person" means any person, firm, association, corporation or business entity.

          (j)  "Processor" means a person, business entity, joint venture or cooperative that receives hemp for processing into commodities, products or hemp seed.  A processor also includes any such entity that brokers and/or stores hemp.

          (k)  "State plan" means the plan contemplated by 7 C.F.R. Part 990 Subpart B that a state must file for approval with the United States Secretary of Agriculture.

          (l)  "Total THC" means any and all forms of tetrahydrocannabinol that are contained naturally in the cannabis plant, as well as synthesized forms of THC and derived variations, derivatives, isomers and allotropes that have similar molecular and physiological characteristics of tetrahydrocannabinol, including, but not limited to, THCA, THC Delta 9, THC Delta 8, THC Delta 10 and THC Delta 6.

          ( * * *lm)  "USDA" means the United States Department of Agriculture.

     SECTION 3.  Section 69-25-207, Mississippi Code of 1972, is amended as follows:

     69-25-207.  (1)  Pursuant to the provisions of this article, * * * cultivation growing and processing of hemp, as defined in Section 69-25-203, are authorized in this state. * * *  Cultivation  Growing and processing of hemp are subject to regulation by the department and may only be performed by persons or business entities that hold a valid license or registration issued * * * hereunder under this article.

     (2)  The commissioner shall create a State Plan for submission to and approval by the United States Department of Agriculture and the United States Secretary of Agriculture.  The commissioner and the department shall promulgate such reasonable regulations as necessary to implement the State Plan and provisions of this article.  The commissioner and the department shall be authorized to promulgate any rule or regulation deemed necessary for the administration of the provisions of this article in compliance with any federal law, rule or regulation promulgated by the United States Department of Agriculture.

     (3)  The department is authorized to accept applications, and issue licenses and/or registrations for all hemp growers and hemp processors.  The department shall adopt and enforce all rules and regulations related to those licenses and/or registrations.

     (4)  All hemp growers must be licensed by the department.

     (5)  All hemp processors must register with the department.

     (6)  All licensed * * * holders growers and registered processors shall keep and maintain crop and/or processing records in accordance with rules and regulations adopted and enforced by the department.  The department may subject the required records to inspection.  The department may make an inspection for the purpose of ensuring compliance with:

          (a)  USDA guidelines;

          (b)  Provisions of this article;

          (c)  Department rules and regulations;

          (d)  Any terms or conditions of a license issued hereunder; 

          (e)  Good manufacturing practices (GMP);

          ( * * *ef)  Registration with the department; or

          ( * * *fg)  A final department order directed to the grower's or processor's hemp operations or activities.

     (7)  All hemp growers and processors shall be subject to a background investigation conducted by the Department of Public Safety, which shall include both a state and federal background check.

     SECTION 4.  Section 69-25-213, Mississippi Code of 1972, is amended as follows:

     69-25-213.  Negligent violations.  (1)  Upon a determination by the commissioner or the commissioner's designee, the following may constitute negligent violations:

          (a)  Failing to provide a legal description of land on which the grower produces hemp;

          (b)  Failing to obtain a license or other required authorization from the department;

          (c)  Failing to register with the department;

          (d)  Producing Cannabis sativa L. with a delta-9-tetrahydrocannabinol concentration of more than * * * five‑tenths percent (0.5%) three-tenths percent (0.3%) on a dry weight basis; or

          (e)  Any other violation of the State Plan, including any rules and regulations set forth by the department.

     (2)  Corrective action plan.  (a)  A hemp grower shall comply with a plan established by the commissioner or the commissioner's designee to correct the negligent violation, including:

              (i)  A reasonable date by which the hemp grower shall correct the negligent violation; and

              (ii)  A requirement that the hemp grower shall periodically report to the commissioner or the commissioner's designee regarding the compliance with the corrective plan for a period of not less than the next two (2) calendar years.

          (b)  The department shall notify the Mississippi Bureau of Narcotics of all corrective action plans implemented by the commissioner or the commissioner's designee.

     (3)  Result of negligent violation.  A hemp grower that negligently violates the State Plan shall not, as a result of that violation, be subject to any criminal enforcement action by a state, county or local government entity.

     (4)  Repeat violations.  A hemp grower that negligently violates the State Plan three (3) times in a five-year period shall be ineligible to produce hemp for a period of five (5) years beginning on the date of the third violation.

     SECTION 5.  Section 69-25-217, Mississippi Code of 1972, is amended as follows:

     69-25-217.  (1)  It shall be unlawful for any person or business entity to:

          (a)  Violate this chapter or any rules or regulations promulgated under this chapter;

          (b)  Fail to comply with a corrective action plan issued by the commissioner under Section 69-25-213(2);

          (c)  Transport hemp or hemp materials in violation of Section 69-25-209 or rules or regulations adopted under this chapter; * * * or

          (d)  Cultivate or grow hemp with a delta-9-tetrahydrocannabinol (THC) concentration of more than three-tenths percent (0.3%) on a dry weight basis * * *.;

          (e)  Produce, process or sell any intoxicating hemp products within the State of Mississippi, except as authorized through this Act or the Mississippi Medical Cannabis Act;

          (f)  Produce, process, or sell any hemp product that contains an artificially derived cannabinoid as defined in Section 41-137-3;

          (g)  Sell or distribute any intoxicating hemp product to any person under the age of twenty-one (21) years old; or

          (h)  Sell any finished hemp product intended for human or animal consumption to a consumer within the state of Mississippi that contains greater than ten (10) milligrams of total THC per serving and one hundred (100) milligrams per container.

     (2)  In addition to any other penalty, fine or conviction, as applicable, any person or business entity that purposely, knowingly or recklessly violates this provision of this chapter relating to hemp production, sales, distribution or processing shall be guilty of a misdemeanor and, upon conviction of the violation, shall be fined in an amount not to exceed Five Thousand Dollars ($5,000.00), or sentenced to imprisonment in the county jail for not more than one (1) year, or both such fine and imprisonment.

     (3)  Notwithstanding subsection (2) of this section, if any person or entity purposely, recklessly or knowingly cultivates or grows hemp with a delta-9-tetrahydrocannabinol (THC) concentration of more than one percent (1%) on a dry weight basis that person or entity shall be guilty of a felony punishable by imprisonment for not more than five (5) years, or a fine of not more than Ten Thousand Dollars ($10,000.00), or both such fine and imprisonment.

     (4)  For purposes of this section, the terms "purposely", "knowingly" and "recklessly" have the following meanings:

          (a)  "Purposefully" means a person acts purposely with respect to a material element of an offense if:

              (i)  The element involves the nature of his or her conduct or a result thereof, it is his or her conscious object to engage in conduct of that nature or to cause such a result; and

              (ii)  The element involves the attendant circumstances, he or she is aware of the existence of such circumstances or he or she believes or hopes that they exist.

          (b)  "Knowingly" means a person acts knowingly with respect to a material element of an offense if:

              (i)  The element involves the nature of his or her conduct or the attendant circumstances, he or she is aware that his or her conduct is of that nature or that such circumstances exist; and

              (ii)  The element involves a result of his or her conduct, he or she is aware that it is practically certain that his or her conduct will cause such a result.

          (c)  "Recklessly" means a person acts recklessly with respect to a material element of an offense when he or she consciously disregards a substantial and unjustifiable risk that the material element exists or will result from his or her conduct.  The risk must be of such a nature and degree that, considering the nature and purpose of the actor's conduct and the circumstances known to him or her, its disregard involves a gross deviation from the standard of conduct that a law-abiding person would observe in the actor's situation.

     SECTION 6.  (1)  Intoxicating hemp products may only be sold to consumers in Mississippi by dispensaries licensed under the Mississippi Medical Cannabis Act.

     (2)  Nothing in this article shall limit or affect the interstate transport of hemp or hemp products through the state.

     (3)  Nothing in this article prohibits the transfer of hemp, hemp ingredients, or intoxicating hemp products by growers and processors to medical cannabis establishments in accordance with the Medical Cannabis Act.

     SECTION 7.  All labels for any product containing finished nonintoxicating hemp shall be approved by the department, provided that packaging, labeling, marketing, and other finished product regulation for intoxicating hemp products shall be governed by the Medical Cannabis Act.

     A finalized sample of any finished nonintoxicating hemp product shall have a complete certificate of analysis (COA) from an independent testing facility and/or laboratory that analyzes the safety and potency of hemp products, and such COA shall be provided to the department.

     SECTION 8.  Any entity registered with the Department as provided under this article, shall submit a report on a quarterly basis due by the 20th of the following month detailing any hemp product produced, distributed, purchased, sold at wholesale or sold at retail.

     A processor shall be subject to a fine as prescribed by the department per incident for the unlawful sale or purchase of any hemp products.

     Any processor shall pay a minimum fine of One Thousand Dollars ($1,000.00) for failing to report to the department by the 20th of the following month, hemp products purchased or sold in Mississippi.

     An electronic reporting system shall be implemented by the department.

     SECTION 9.  Products that contain hemp shall be tested in a testing facility and/or laboratory that meets the requirements of the Agricultural Act of 2018 and that analyzes the safety and potency of CBD products.

     SECTION 10.  (1)  Any medical cannabis processing facility that intends to process intoxicating hemp products shall register with the Department of Health.  Any such facility shall be subject to a nonrefundable annual registration fee of Five Thousand Dollars ($5,000.00), which shall be in addition to the prescribed licensing fee to operate as a medical cannabis processing facility.  The Department of Health may register a medical cannabis processing facility as a medical cannabis processing facility that also processes intoxicating hemp products after such facility pays the fees required of this subsection.  The Department of Health shall be responsible for oversight of any medical cannabis processing facility that processes intoxicating hemp products.

     (2)  Any medical cannabis dispensary that intends to acquire, possess, store, transfer, sell, supply or dispense intoxicating hemp products shall register with the Department of Revenue.  Any such facility shall be subject to a nonrefundable annual registration fee of Five Thousand Dollars ($5,000.00), which shall be in addition to the prescribed licensing fee to operate as a medical cannabis dispensary.  The Department of Revenue may register a medical cannabis dispensary as a medical cannabis dispensary that also acquires, possesses, stores, transfers, sells, supplies or dispenses intoxicating hemp products after such facility pays the fees required of this subsection.  The Department of Revenue shall be responsible for the oversight of any such medical cannabis dispensary that acquires, possesses, stores, transfers, sells, supplies or dispenses intoxicating hemp products.

     SECTION 11.  (1)  There is imposed, levied and assessed an excise tax on intoxicating hemp products.  Dispensaries shall collect and remit an excise tax on forms and in a manner specified by the Commissioner of Revenue.

     The excise tax on intoxicating hemp products shall be based on the sales price for which a dispensary sells to a consumer, and the rate of the excise tax shall be five percent (5%) of such sales price.

     (2)  All administrative provisions of the sales tax law and amendments thereto, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provision of the sales tax law, and all other requirements and duties imposed upon a taxpayer, shall apply to all persons liable for taxes under the provisions of this subsection.  The Commissioner of the Department of Revenue shall exercise all power and authority and perform all duties with respect to taxpayers under this subsection as are provided in the sales tax law, except where there is conflict, then the provisions of this subsection shall control.

     All excise taxes collected under the provisions of this section shall be deposited into the State General Fund.

     (3)  A dispensary, on forms and in a manner specified by the Commissioner of Revenue, shall collect and remit the sales tax levied in Section 27-65-17(1)(a) from the gross proceeds derived from each retail sale of intoxicating hemp products.

     SECTION 12.  Section 69-25-211, Mississippi Code of 1972, is amended as follows:

     69-25-211.  (1)  (a)  The commissioner or the commissioner's designee may enter, at reasonable times, upon any public or private property at which hemp is being cultivated or processed for the purpose of determining compliance with this * * * chapter article and rules adopted under it.  The * * * Director of the Bureau of Plant Industry commissioner or the commissioner's designee may apply for, and any judge of a court of competent jurisdiction, may issue a search warrant as is necessary to achieve the purposes of this * * * chapter article relating to things, property or places within the court's territorial jurisdiction.

          (b)  If the commissioner or the commissioner's designee determines that emergency conditions exist requiring immediate action necessary to protect public health or safety of the environment, the commissioner or the commissioner's designee may issue an order stating the existence of such conditions and requiring specific actions be taken to mitigate those conditions without providing prior notice or an adjudication hearing.

          (c)  Any person to whom such an order is issued shall immediately comply with that order, and may apply to the commissioner or the commissioner's for an adjudication hearing.  Upon receiving an application for an adjudication hearing, the * * * director commissioner or the commissioner's designee shall hold the hearing as soon as practicable and not later than thirty (30) days after receipt of the application.  On the basis of the hearing, the * * * director commissioner or the commissioner's designee shall continue the order in effect, revoke it, or modify it.

          (d)  In addition to any other available remedies, the commissioner or the Mississippi Attorney General may apply to the circuit court in the county where any provision of this * * * chapter article or an order issued under paragraph (b) of this subsection is being violated for an injunction restraining any person from continuing the violation.

          (e)  An employee of the state or any division, agency, institution thereof involved in the administration and/or enforcement of this article, shall not be subject to prosecution for violations related to possession or transportation of hemp or cannabis in conjunction with the employee's duties arising under this * * * chapter article.

     (2)  In addition to any other liability or penalty provided by law, the department may revoke or refuse to issue or renew a hemp grower license or hemp processor registration and may impose a civil penalty for violations of:

          (a)  A license or registration requirement;

          (b)  License or registration terms or conditions;

          (c)  Department rules and regulations relating to growing or processing hemp; or

          (d)  A final order of the department that is specifically directed to the grower's or processor's hemp operations or activities.

     (3)  The department may impose administrative penalties for violations under this section in * * * accordance with substantially the same manner as provided for the Department of Agriculture and Commerce in Section 69-25-51.

     SECTION 13.  Section 69-25-215, Mississippi Code of 1972, is amended as follows:

     69-25-215.  If a hemp grower violates the State Plan, including growing hemp containing a delta-9-tetrahydrocannabinol (THC) concentration that exceeds three-tenths percent (0.3%) on a dry mass basis or a tolerance range as specified by USDA, with a culpable mental state greater than negligence as determined by the department, the commissioner shall immediately report the violation and the hemp grower to the United States Attorney General, the Mississippi Attorney General and the Mississippi Public Safety Commissioner.  Such violations shall also be referred to the Mississippi Bureau of Narcotics for investigation.  The Bureau of Narcotics may detain, seize and/or destroy the crop and may initiate a criminal case for any violation of this article or the Mississippi Uniform Controlled Substances Law.  The Mississippi Attorney General shall, in person or by his or her designee, prosecute all criminal actions related to violations arising under this * * * chapter article relating to hemp, on behalf of the state.  Violations of the State Plan that involve culpability greater than negligence must be reported to the United States Attorney General and the Mississippi Attorney General.  The provisions of Section 69-25-213 shall not apply to nonnegligent violations.

     SECTION 14.  Section 69-25-219, Mississippi Code of 1972, is amended as follows:

     69-25-219.  (1)  Any person convicted of a felony relating to a controlled substance under state or federal law before, on or after * * * the date of enactment of this article June 29, 2020, shall be ineligible, during the ten-year period following the date of the conviction to participate in the program established under this article and to * * * produce grow or process hemp under any regulations or guidelines issued under this article.

     (2)  Any person who materially falsifies any information contained in an application to participate in the State Plan established under this article shall be ineligible to participate in the State Plan.

     (3)  In addition to any inspection conducted, the department may inspect any hemp crop at any time and take a representative composite sample for analysis.  It shall be the duty of the department to take such samples and deliver them to the State Chemist for examination and analysis.  It shall be the duty of the State Chemist to cause as many analyses to be made of samples delivered to him or her by the department as may be necessary to properly implement the intent of this article.  The State Chemist shall make a report of such analyses to the department.

     (4)  The department shall charge growers and processors a fee or fees as determined by the department in a sufficient amount to cover the costs required to administer and enforce the provisions of this * * * chapter article.

     SECTION 15.  Section 69-25-221, Mississippi Code of 1972, is amended as follows:

     69-25-221.  No person shall operate as a hemp processor without first having secured a surety bond pursuant to this section.  The * * * commissioner department shall promulgate rules and regulations as necessary to require hemp processors to secure a surety bond.  A hemp processor may file with the department, in lieu of a surety bond, a certificate of deposit or irrevocable letter of credit from any bank or banking corporation insured by the Federal Deposit Insurance Corporation.  Rules and regulations required for certificates of deposit and irrevocable letters of credit shall be promulgated by the * * * commissioner department.

     SECTION 16.  Section 69-25-223, Mississippi Code of 1972, is amended as follows:

     69-25-223.  (1)  The provisions of this article which provide authority to the Commission of Agriculture and Commerce and the Mississippi Department of Agriculture and Commerce to administer the provisions, related to hemp operators, of the "Mississippi Intoxicating Hemp * * * Cultivation Regulation Act * * *," shall be subject to legislative appropriation or receipt of necessary funding from any private or public entity for purposes of implementation.

     (2)  The provisions of this article shall not have any effect upon any programs administered by Mississippi State University, which shall remain exempt, as such programs related to the educational, research or testing functions performed by Mississippi State Chemical Laboratory, shall continue to function in accordance with the mission of the university, as approved by the Board of Trustees of State Institutions of Higher Learning.

     SECTION 17.  Section 41-137-3, Mississippi Code of 1972, is amended as follows:

     41-137-3.  For purposes of this chapter, unless the context requires otherwise, the following terms shall have the meanings ascribed herein:

          (a)  "Ancillary product" means:

              (i)  Any equipment, products or materials of any kind which are used, intended for use, or designed for use in storing, smoking, vaporizing, or containing medical cannabis, cannabis products, or intoxicating hemp products, or for ingesting, inhaling, or otherwise introducing medical cannabis, cannabis products, or intoxicating hemp products into the human body; and

              (ii)  Intoxicating hemp products, and non-intoxicating hemp products.

          ( * * *ab)  "Artificially derived cannabinoid" means a chemical substance that is created by a chemical reaction that changes the molecular structure of any chemical substance derived from the plant Cannabis family Cannabaceae.  Such term shall not include:

              (i)  A naturally occurring chemical substance that is separated from the plant Cannabis family Cannabaceae by a chemical or mechanical extraction process;

              (ii)  Cannabinoids that are produced or processed by decarboxylation from a naturally occurring cannabinoid acid without the use of a chemical catalyst; or

              (iii)  Any other chemical substance identified by MDOH.

          ( * * *bc)  "Allowable amount of medical cannabis" means an amount not to exceed the maximum amount of Mississippi Medical Cannabis Equivalency Units ("MMCEU").

          ( * * *cd)  "Bona fide practitioner-patient relationship" means:

               (i)  A practitioner and patient have a treatment or consulting relationship, during the course of which the practitioner, within his or her scope of practice, has completed an in-person assessment of the patient's medical history and current mental health and medical condition and has documented their certification in the patient's medical file;

               (ii)  The practitioner has consulted in person with the patient with respect to the patient's debilitating medical condition; and

              (iii)  The practitioner is available to or offers to provide follow-up care and treatment to the patient.

          ( * * *de)  "Cannabis" means all parts of the plant of the genus cannabis, the flower, the seeds thereof, the resin extracted from any part of the plant and every compound, * * * manufacture process, salt, derivative, mixture or preparation of the plant, its seeds or its resin, including whole plant extracts.  Such term shall not mean cannabis-derived drug products approved by the federal Food and Drug Administration under Section 505 of the Federal Food, Drug, and Cosmetic Act, or hemp as defined in Section 69-25-203.

          ( * * *ef)  "Cannabis cultivation facility" means a business entity licensed and registered by the Mississippi Department of Health that * * * acquires, grows, cultivates and harvests is authorized to:

              (i)  Acquire, grow, cultivate and harvest medical cannabis in an indoor, enclosed, locked and secure area for sale to other medical cannabis establishments;

              (ii)  Acquire and possess hemp-derived ingredients and intoxicating hemp products to sell to other medical cannabis establishments.

          ( * * *fg)  "Cannabis disposal entity" means a business licensed and registered by the Mississippi Department of Health that is involved in the commercial disposal or destruction of medical cannabis.

          ( * * *gh)  "Cannabis processing facility" means a business entity that is licensed and registered by the Mississippi Department of Health that:

               (i)  Acquires or intends to acquire cannabis from a cannabis cultivation facility;

               (ii)  Possesses cannabis or hemp with the intent to * * * manufacture process a cannabis product or an intoxicating hemp product;

               (iii) * * *  Manufactures  Processes or intends to * * * manufacture process a cannabis or intoxicating hemp product from unprocessed hemp ingredients, cannabis or a cannabis extract; and

               (iv)  Sells or intends to sell a cannabis product and/or intoxicating hemp products to a medical cannabis dispensary, cannabis testing facility or cannabis research facility.

          ( * * *hi)  "Cannabis products" means cannabis flower, concentrated cannabis, cannabis extracts and products that are infused with cannabis or an extract thereof and are intended for use or consumption by humans.  The term includes, without limitation, edible cannabis products, beverages, topical products, ointments, oils, tinctures and suppositories that contain tetrahydrocannabinol (THC) and/or cannabidiol (CBD) except those products excluded from control under Sections 41-29-113 and 41-29-136.

          ( * * *ij)  "Cannabis research facility" or "research facility" means a research facility at any university or college in this state or an independent entity licensed and registered by the Mississippi Department of Health pursuant to this chapter that acquires cannabis from cannabis cultivation facilities and cannabis processing facilities in order to research cannabis, develop best practices for specific medical conditions, develop medicines and provide commercial access for medical use.

          ( * * *jk)  "Cannabis testing facility" or "testing facility" means an independent entity licensed and registered by the Mississippi Department of Health that analyzes the safety and potency of cannabis, cannabis products and hemp products, including, but not limited to, intoxicating hemp products.

          ( * * *kl)  "Cannabis transportation entity" means an independent entity licensed and registered by the Mississippi Department of Health that is involved in the commercial transportation of medical cannabis, cannabis products and intoxicating hemp products.

          ( * * *lm)  "Cannabis waste" means plant debris of the plant of the genus cannabis, including dead plants and all unused plant parts.  This term shall not include seeds, roots, stems and stalks.

          ( * * *mn)  "Cannabinoid" means any of the chemical compounds that are the active constituents derived from THC.

          ( * * *no)  "Canopy" means the total surface area within a cultivation area that is dedicated to the cultivation of flowering cannabis plants.  The surface area of the plant canopy must be calculated in square feet and measured and must include all of the area within the boundaries where the cultivation of the flowering cannabis plants occurs.  If the surface area of the plant canopy consists of noncontiguous areas, each component area must be separated by identifiable boundaries.  If a tiered or shelving system is used in the cultivation area the surface area of each tier or shelf must be included in calculating the area of the plant canopy.  Calculation of the area of the plant canopy may not include the areas within the cultivation area that are used to cultivate immature cannabis plants and seedlings, prior to flowering, and that are not used at any time to cultivate mature cannabis plants.

          ( * * *op)  "Cardholder" means a registered qualifying patient or a registered designated caregiver who has been issued and possesses a valid registry identification card.

          ( * * *pq)  "Chronic pain" means a pain state in which the cause of the pain cannot be removed or otherwise treated, and which in the generally accepted course of medical practice, no relief or cure of the cause of the pain is possible, or none has been found after reasonable efforts by a practitioner.

          ( * * *qr)  "Concentrate" means a substance obtained by separating cannabinoids from cannabis by:

               (i)  A mechanical extraction process;

               (ii)  A chemical extraction process using a nonhydrocarbon-based or other solvent, such as water, vegetable glycerin, vegetable oils, animal fats, food-grade ethanol or steam distillation; or

               (iii)  A chemical extraction process using the hydrocarbon-based solvent carbon dioxide, provided that the process does not involve the use of high heat or pressure.

          ( * * *rs)  "Debilitating medical condition" means:

              (i)  Cancer, Parkinson's disease, Huntington's disease, muscular dystrophy, glaucoma, spastic quadriplegia, positive status for human immunodeficiency virus (HIV), acquired immune deficiency syndrome (AIDS), hepatitis, amyotrophic lateral sclerosis (ALS), Crohn's disease, ulcerative colitis, sickle-cell anemia, Alzheimer's disease, agitation of dementia, post-traumatic stress disorder (PTSD), autism, pain refractory to appropriate opioid management, diabetic/peripheral neuropathy, spinal cord disease or severe injury, or the treatment of these conditions;

              (ii)  A chronic, terminal or debilitating disease or medical condition, or its treatment, that produces one or more of the following:  cachexia or wasting syndrome, chronic pain, severe or intractable nausea, seizures, or severe and persistent muscle spasms, including, but not limited to, those characteristic of multiple sclerosis; or

               (iii)  Any other serious medical condition or its treatment added by the Mississippi Department of Health, as provided for in Section 41-137-17.

          ( * * *st)  "Designated caregiver" means a person who:

              (i)  Has agreed to assist with a registered qualifying patient's medical use of medical cannabis;

               (ii)  Assists no more than five (5) registered qualifying patients with their medical use of medical cannabis, unless the designated caregiver's registered qualifying patients each reside in or are admitted to a health care facility or facility providing residential care services or day care services where the designated caregiver is employed;

               (iii)  Is at least twenty-one (21) years of age unless the person is the parent or legal guardian of each qualifying patient the person assists; and

               (iv)  Has not been convicted of a disqualifying felony offense.

          (u)  "Delta-9-tetrahydrocannabinol" means the sum of the percentage by weight of tetrahydrocannabinol acid multiplied by eight hundred seventy-seven thousandths (0.877) plus the percentage by weight of delta-9-tetrahydrocannabinol.

          ( * * *tv)  "Disqualifying felony offense" means:

               (i)  A conviction for a crime of violence, as defined in Section 97-3-2;

              (ii)  A conviction for a crime that was defined as a violent crime in the law of the jurisdiction in which the offense was committed, and that was classified as a felony in the jurisdiction where the person was convicted; or

              (iii)  A conviction for a violation of a state or federal controlled substances law that was classified as a felony in the jurisdiction where the person was convicted, including the service of any term of probation, incarceration or supervised release within the previous five (5) years and the offender has not committed another similar offense since the conviction.  Under this subparagraph (iii), a disqualifying felony offense shall not include a conviction that consisted of conduct for which this chapter would likely have prevented the conviction but for the fact that the conduct occurred before February 2, 2022.

          ( * * *uw)  "Edible cannabis products" means products that:

               (i)  Contain or are infused with cannabis or an extract thereof;

               (ii)  Are intended for human consumption by oral ingestion; and

              (iii)  Are presented in the form of foodstuffs, beverages, extracts, oils, tinctures, lozenges and other similar products.

          ( * * *vx)  "Entity" means a corporation, general partnership, limited partnership or limited liability company that has been registered with the Secretary of State as applicable.

          (y)  "Grower" has the same meaning as set forth in Section 69-25-203.

          (z)  "Hemp" has the same meaning as set forth in Section 69-25-203.

          (aa)  "Hemp-derived ingredient" means a hemp biomass, hemp-derived distillate, or other substance derived from hemp to be used in the production of an intoxicating hemp product.  Notwithstanding any provision to the contrary, hemp derived ingredients that may have a Total THC concentration above three tenths percent (0.3%) and less than or equal to five percent (5.0%) if not for consumer use or distribution and only sold or transferred between licensed hemp growers, processors, medical cannabis establishments, or certified laboratories, and will undergo further refinement or processing into a hemp product.

          (bb)  "Intoxicating hemp product" means a product as defined in Section 69-25-203.

          ( * * *wcc)  "MMCEU" means Mississippi Medical Cannabis Equivalency Unit.  One unit of MMCEU shall be considered equal to * * *:

(i)  Three and one‑half (3.5) grams of medical cannabis flower;

(ii)  One (1) gram of medical cannabis concentrate; or

(iii)  One hundred (100) milligrams of THC in an infused product. one (1) gram of THC in any medical cannabis product.

          ( * * *xdd)  "MDOH" means the Mississippi Department of Health.

          ( * * *yee)  "MDOR" means the Mississippi Department of Revenue.

          ( * * *zff)  "Medical cannabis" means cannabis, cannabis products and edible cannabis that are intended to be used by registered qualifying patients as provided in this chapter.

          ( * * *aagg)  "Medical cannabis dispensary" or "dispensary" means an entity licensed and registered with the MDOR that acquires, possesses, stores, transfers, sells, supplies or dispenses medical cannabis, equipment used for medical cannabis, cannabis products, ancillary products or related supplies and educational materials to cardholders or to other individuals as authorized by this act.

          ( * * *bbhh)  "Medical cannabis establishment" means a cannabis cultivation facility, cannabis processing facility, cannabis testing facility, cannabis dispensary, cannabis transportation entity, cannabis disposal entity or cannabis research facility licensed and registered by the appropriate agency.

          ( * * *ccii)  "Medical cannabis establishment agent" means an owner, officer, board member, employee, volunteer or agent of a medical cannabis establishment.

          ( * * *ddjj)  "Medical use" includes the acquisition, administration, cultivation, processing, delivery, harvest, possession, preparation, transfer, transportation, or use of medical cannabis or equipment relating to the administration of medical cannabis to treat or alleviate a registered qualifying patient's debilitating medical condition or symptoms associated with the patient's debilitating medical condition.  The term "medical use" does not include:

              (i)  The cultivation of cannabis unless the cultivation is done by a cannabis cultivation facility; or

              (ii)  The extraction of resin from cannabis by mechanical or chemical extraction unless the extraction is done by a cannabis processing facility.

          ( * * *eekk"Nonresident cardholder" means a person who:

               (i)  Has been diagnosed with a debilitating medical condition by a practitioner in his or her respective state or territory, or is the parent, guardian, conservator or other person with authority to consent to the medical use of medical cannabis by a person who has been diagnosed with a debilitating medical condition;

              (ii)  Is not a resident of Mississippi or who has been a resident of Mississippi for less than forty-five (45) days; and

              (iii)  Has submitted any documentation required by MDOH rules and regulations and has received confirmation of registration.

          ( * * *ffll)  "Practitioner" means a physician, certified nurse practitioner, physician assistant or optometrist who is licensed to prescribe medicine under the licensing requirements of their respective occupational boards and the laws of this state.  In relation to a nonresident cardholder, the term means a physician, certified nurse practitioner, physician assistant or optometrist who is licensed to prescribe medicine under the licensing requirements of their respective occupational boards and under the laws of the state or territory in which the nonresident patient resides.  For registered qualifying patients who are minors, "practitioner" shall mean a physician or doctor of osteopathic medicine who is licensed to prescribe medicine under the licensing requirements of their respective occupational boards and the laws of this state.

          (mm)  "Processor" has the same meaning as set forth in Section 69-25-203.

          ( * * *ggnn)  "Public place" means a church or any area to which the general public is invited or in which the general public is permitted, regardless of the ownership of the area, and any area owned or controlled by a municipality, county, state or federal government, including, but not limited to, streets, sidewalks or other forms of public transportation.  Such term shall not mean a private residential dwelling.

          ( * * *hhoo)  "Qualifying patient" means a person who has been diagnosed by a practitioner as having a debilitating medical condition and has been issued a written certification.

          ( * * *iipp)  "Registry identification card" means a document issued by the MDOH that identifies a person as a registered qualifying patient, nonresident registered qualifying patient or registered designated caregiver.

          ( * * *jjqq)  "School" means an institution for the teaching of children, consisting of a physical location, whether owned or leased, including instructional staff members and students, and which is in session each school year.  This definition shall include, but not be limited to, public, private, church and parochial programs for kindergarten, elementary, junior high and high schools.  Such term shall not mean a home instruction program.

          ( * * *kkrr)  "Scope of practice" means the defined parameters of various duties, services or activities that may be provided or performed by a certified nurse practitioner as authorized under Sections 73-15-5 and 73-15-20, by an optometrist as authorized under Section 73-19-1, by a physician as authorized under Section 73-25-33, or by a physician assistant under Section 73-26-5, and rules and regulations adopted by the respective licensing boards for those practitioners.

          ( * * *llss) * * *  "THC" or "Tetrahydrocannabinol"  "Total THC" means any and all forms of tetrahydrocannabinol that are contained naturally in the cannabis plant, as well as synthesized forms of THC and derived variations, derivatives, isomers and allotropes that have similar molecular and physiological characteristics of tetrahydrocannabinol, including, but not limited to, THCA, THC Delta 9, THC Delta 8, THC Delta 10 and THC Delta 6.

          ( * * *mmtt)  "Written certification" means a form approved by the MDOH, signed and dated by a practitioner, certifying that a person has a debilitating medical condition.  A written certification shall include the following:

                    (i)  The date of issue and the effective date of the recommendation;

                    (ii)  The patient's name, date of birth and address;

                    (iii)  The practitioner's name, address, and federal Drug Enforcement Agency number; and

                    (iv)  The practitioner's signature.

     SECTION 18.  Section 41-137-9, Mississippi Code of 1972, is amended as follows:

     41-137-9.  (1)  There is a presumption that a registered qualifying patient is engaged in the medical use of medical cannabis under this chapter if the person is in possession of a registry identification card and an amount of medical cannabis that does not exceed the allowable amount of medical cannabis.  There is a presumption that a registered designated caregiver is assisting in the medical use of medical cannabis under this chapter if the person is in possession of a registry identification card and an amount of medical cannabis that does not exceed the allowable amount of medical cannabis.  These presumptions may be rebutted by evidence that conduct related to medical cannabis was not for the purpose of treating or alleviating a registered qualifying patient's debilitating medical condition or symptoms associated with the registered qualifying patient's debilitating medical condition under this chapter.

     (2)  Subject to the conditions, limitations, requirements and exceptions set forth in this chapter, the following activities related to medical cannabis or ancillary products shall be considered lawful:

          (a)  The purchase, transportation or possession of up to the allowable amount or medical use of medical cannabis;

          (b)  Financial reimbursement by a registered qualifying patient to the patient's registered designated caregiver for direct costs incurred by the registered designated caregiver for assisting with the registered qualifying patient's medical use of medical cannabis;

          (c)  Compensating a dispensary for goods or services provided;

          (d)  The provision, by a professional or occupational licensee, of advice or services related to medical cannabis activities allowed under this chapter, to the extent such advice or services meet or exceed the applicable professional or occupational standard of care;

          (e)  Providing or selling equipment used to ingest medical cannabis to a cardholder, nonresident cardholder or to a medical cannabis establishment;

          (f)  Acting as a designated caregiver to assist a registered qualifying patient with the act of using or administering medical cannabis;

          (g)  Activities by a medical cannabis establishment or a medical cannabis establishment agent that are allowed by its license and registration;

          (h)  Activities by a dispensary or a dispensary agent to:

              (i)  Possess, store or sell medical cannabis, ancillary products * * *, and educational materials * * * and products used to ingest medical cannabis to cardholders, nonresident cardholders * * * and, other dispensaries, * * * or and other individuals as permitted under the act;

              (ii)  To purchase or otherwise acquire medical cannabis products, cannabis products, ancillary products and intoxicating hemp products from cannabis cultivation facilities, cannabis processing facilities, cannabis research facilities or other dispensaries; or

              (iii)  Possess, store or sell intoxicating hemp products to any consumer twenty-one (21) years of age or older;

          (i)  Activities by a cannabis cultivation facility, cannabis processing facility or agents of these facilities to:

               (i)  Possess, plant, propagate, cultivate, grow, harvest, produce, process, manufacture, compound, convert, prepare, pack, repack or store medical cannabis and hemp-derived ingredients or intoxicating hemp products;

               (ii)  Purchase or otherwise acquire medical cannabis * * * and, cannabis products, and intoxicating hemp products from medical cannabis establishments; or

               (iii)  Purchase or otherwise acquire hemp-derived ingredients or ancillary products from any lawful source; or

               ( * * *iiiiv)  Sell, supply or transfer medical cannabis products, cannabis products, ancillary products, equipment used to ingest medical cannabis, and related supplies and educational materials to other cannabis cultivation facilities, cannabis processing facilities or dispensaries * * *.;

          (j)  Activities by a cannabis research facility, a cannabis testing facility or agents of these facilities to:

               (i)  Purchase or otherwise acquire medical cannabis from medical cannabis establishments;

               (ii)  Possess, purchase or otherwise acquire hemp-derived ingredients, or cannabis products, or intoxicating hemp products;

               ( * * *iiiii)  Possess, produce, process, compound, convert, prepare, pack, test, repack and store medical cannabis, hemp-derived ingredients and cannabis products obtained from medical cannabis establishments; or

               ( * * *iiiiv)  Sell, supply or transfer medical cannabis, hemp-derived ingredients, cannabis products, ancillary products, and educational materials * * * and equipment used to ingest medical cannabis to cannabis cultivation facilities, cannabis processing facilities, cannabis testing facilities and cannabis research facilities * * *.;

          (k)  Activities by a cannabis transportation entity or a cannabis disposal entity to transport, supply, deliver, dispose of or destroy cannabis, cannabis products, intoxicating hemp products or hemp-derived ingredients, as applicable.

     (3)  Any medical cannabis, cannabis product, * * * equipment used to ingest medical cannabis ancillary product, or other interest in or right to property that is possessed, owned or used in connection with the medical use of medical cannabis as authorized by this chapter, or acts incidental to such use, shall not be seized or forfeited.  This chapter shall not prevent the seizure or forfeiture of medical cannabis exceeding the allowable amounts of medical cannabis, nor shall it prevent seizure or forfeiture if the basis for the action is unrelated to the medical cannabis that is possessed, processed, transferred or used pursuant to this chapter.  This section shall not be construed to prevent the seizure of intoxicating hemp products by the proper agency under this act.

     (4)  Possession of, or application for, a registry identification card shall not:

          (a)  Constitute probable cause or reasonable suspicion;

          (b)  Be used to support a search of the person or property of the person possessing or applying for the registry identification card; or

          (c)  Subject the person or property of the person to inspection by any governmental agency.

     (5)  It is the public policy of the State of Mississippi that contracts related to medical cannabis that are entered into by cardholders, medical cannabis establishments, medical cannabis establishment agents and those who allow property to be used by those persons, should be enforceable to the extent that those activities comply with the other provisions of this chapter.  It is the public policy of the State of Mississippi that no contract entered into by a cardholder, a medical cannabis establishment, or a medical cannabis establishment agent, or by a person who allows property to be used for activities that are authorized under this chapter, shall be unenforceable on the basis that activities related to cannabis are prohibited by federal law.

     (6)  An applicant for a professional or occupational license shall not be denied a license based on previous employment related to medical cannabis activities that are allowed under this chapter.

     SECTION 19.  Section 41-137-11, Mississippi Code of 1972, is amended as follows:

     41-137-11.  (1)  Each medical cannabis establishment shall use a statewide seed-to-sale tracking system certified by the MDOH to track medical cannabis from seed or immature plant stage until the medical cannabis is purchased by a registered qualifying patient or registered designated caregiver or destroyed.  Records entered into the seed-to-sale tracking system shall include each day's beginning inventory, harvests, acquisitions, sales, disbursements, remediations, disposals, transfers, ending inventory, and any other data necessary for inventory control records in the statewide seed-to-sale tracking system.  Each medical cannabis dispensary shall be responsible for ensuring that all medical cannabis sold or disbursed to a registered qualifying patient or registered designated caregiver is recorded in the seed-to-sale tracking system as a purchase by or on behalf of the applicable registered qualifying patients.  

     (2)  Amounts of medical cannabis shall be recorded in the following manner:

          (a)  For dried, unprocessed cannabis, in ounces or grams;

          (b)  For concentrates, in grams; or

          (c)  For infused products, by milligrams of THC.

     (3)  The seed-to-sale tracking system used by cannabis cultivation facilities, dispensaries, cannabis processing facilities, cannabis testing facilities, cannabis research facilities, cannabis transportation entities and cannabis disposal entities shall be capable of:

          (a)  Allowing those facilities and entities to interface with the statewide system such that a facility may enter and access information in the statewide system;

          (b)  Providing the MDOR and MDOH with access to all information stored in the system's database;

          (c)  Maintaining the confidentiality of all patient and caregiver data and records accessed or stored by the system such that all persons or entities other than the MDOR and MDOH may only access the information in the system that they are authorized by law to access; 

          (d)  Producing analytical reports to the MDOR and MDOH regarding the total quantity of daily, monthly, and yearly sales at the facility per product type; the average prices of daily, monthly, and yearly sales at the facility per product type; and total inventory or sales record adjustments at the facility; * * * and

          (e)  The ability to determine the amount of medical cannabis that a registered qualifying patient or registered designated caregiver has purchased that day in real time by searching a patient registration number * * *.; and

          (f)  Incorporating hemp-derived ingredients, intoxicating hemp products, and cannabis products purchased and sold by medical cannabis establishments.

     (4)  Banks and other financial institutions may be allowed access to specific limited information from the seed-to-sale tracking system.  The information that may be available to these institutions shall be limited to financial data of individuals and business entities that have a business relationship with these institutions.  This information shall be limited to the information needed for banks to comply with applicable federal regulations and shall not disclose any medical or personal information about registered cardholders or designated caregivers.

     SECTION 20.  Section 41-137-35, Mississippi Code of 1972, is amended as follows:

     41-137-35.  (1)  The MDOH shall issue licenses for cannabis cultivation facilities, cannabis processing facilities, cannabis transportation entities, cannabis disposal entities, cannabis research facilities and cannabis testing facilities.  The MDOR shall issue licenses for medical cannabis dispensaries.

     (2)  The cannabis cultivation facility license application fee shall be subject to the following tiers:

          (a)  Micro-cultivators.

              (i)  Tier 1.  A cannabis cultivation facility with a canopy of one thousand (1,000) square feet or less shall be subject to a one-time nonrefundable license application fee of One Thousand Five Hundred Dollars ($1,500.00).  The annual license fee shall be a nonrefundable fee of Two Thousand Dollars ($2,000.00).

               (ii)  Tier 2.  A cannabis cultivation facility with a canopy of more than one thousand (1,000) square feet but not more than two thousand (2,000) square feet shall be subject to a one-time nonrefundable license application fee of Two Thousand Five Hundred Dollars ($2,500.00).  The annual license fee shall be a nonrefundable fee of Three Thousand Five Hundred Dollars ($3,500.00).

          (b)  Cultivators.

              (i)  Tier 1.  A cannabis cultivation facility with a canopy of not less than two thousand (2,000) square feet but not more than five thousand (5,000) square feet shall be subject to a one-time nonrefundable license application fee of Five Thousand Dollars ($5,000.00).  The annual license fee shall be a nonrefundable fee of Fifteen Thousand Dollars ($15,000.00).

              (ii)  Tier 2.  A cannabis cultivation facility with a canopy of not less than five thousand (5,000) square feet but not more than fifteen thousand (15,000) square feet shall be subject to a one-time nonrefundable license application fee of Ten Thousand Dollars ($10,000.00).  The annual license fee shall be a nonrefundable fee of Twenty-five Thousand Dollars ($25,000.00).

              (iii)  Tier 3.  A cannabis cultivation facility with a canopy of not less than fifteen thousand (15,000) square feet but not more than thirty thousand (30,000) square feet shall be subject to a one-time nonrefundable license application fee of Twenty Thousand Dollars ($20,000.00).  The annual license fee shall be a nonrefundable fee of Fifty Thousand Dollars ($50,000.00). 

              (iv)  Tier 4.  A cannabis cultivation facility with a canopy of not less than thirty thousand (30,000) square feet but not more than sixty thousand (60,000) square feet shall be subject to a one-time nonrefundable license application fee of Thirty Thousand Dollars ($30,000.00).  The annual license fee shall be a nonrefundable fee of Seventy-five Thousand Dollars ($75,000.00).  

              (v)  Tier 5.  A cannabis cultivation facility with a canopy of not less than sixty thousand (60,000) square feet but not more than one hundred thousand (100,000) square feet shall be subject to a one-time nonrefundable license application fee of Forty Thousand Dollars ($40,000.00).  The annual license fee shall be a nonrefundable fee of One Hundred Thousand Dollars ($100,000.00). 

               (vi)  Tier 6.  A cannabis cultivation facility with a canopy of not less than one hundred thousand (100,000) square feet but not more than one hundred fifty thousand (150,000) square feet shall be subject to a one-time nonrefundable license application fee of Sixty Thousand Dollars ($60,000.00).  The annual license fee shall be a nonrefundable fee of One Hundred Fifty Thousand Dollars ($150,000.00).  Tier 6 cannabis cultivation facilities shall have not more than two (2) locations; however, the total canopy space of both locations combined may not exceed one hundred fifty thousand (150,000) square feet.

     (3)  The cannabis processing facility license application fee shall be subject to the following tiers:

          (a)  Micro-processors. 

              (i)  Tier 1.  A cannabis processing facility which processes less than two thousand (2,000) pounds of dried biomass cannabis material annually shall be subject to a one-time nonrefundable license application fee of Two Thousand Dollars ($2,000.00).  The annual license fee shall be a nonrefundable fee of Three Thousand Five Hundred Dollars ($3,500.00).

               (ii)  Tier 2.  A cannabis processing facility which processes not less than two thousand (2,000) pounds but less than three thousand (3,000) pounds of dried biomass cannabis material annually shall be subject to a one-time nonrefundable license application fee of Two Thousand Five Hundred Dollars ($2,500.00).  The annual license fee shall be a nonrefundable fee of Five Thousand Dollars ($5,000.00).

          (b)  Processors.  A cannabis processing facility which processes not less than three thousand (3,000) pounds of biomass cannabis material annually shall be subject to a one-time nonrefundable license application fee of Fifteen Thousand Dollars ($15,000.00).  The annual license fee shall be a nonrefundable fee of Twenty Thousand Dollars ($20,000.00).

     (4)  A medical cannabis dispensary shall be subject to a one-time nonrefundable license application fee of Fifteen Thousand Dollars ($15,000.00).  The annual license fee shall be a nonrefundable fee of Twenty-five Thousand Dollars ($25,000.00).

     (5)  Cannabis transportation entities shall be subject to a one-time nonrefundable application fee of Five Thousand Dollars ($5,000.00).  The annual license fee shall be a nonrefundable fee of Seven Thousand Five Hundred Dollars ($7,500.00).

     (6)  Cannabis disposal entities shall be subject to a one-time nonrefundable application fee of Five Thousand Dollars ($5,000.00).  The annual license fee shall be a nonrefundable fee of Seven Thousand Five Hundred Dollars ($7,500.00). 

     (7)  Cannabis testing facilities shall be subject to a one-time nonrefundable application fee of Ten Thousand Dollars ($10,000.00) and an annual license fee of Fifteen Thousand Dollars ($15,000.00).  An individual or business entity that has a direct or indirect ownership or economic interest in a licensed cannabis testing facility may also have a direct or indirect ownership or economic interest in a licensed medical cannabis transportation entity.  A cannabis testing facility may enter into an agreement for the transportation of medical cannabis by a licensed medical cannabis transportation entity.  MDOH may contract with a private laboratory for the purpose of conducting compliance testing oversight of medical cannabis testing facilities licensed in the state.  Any such laboratory under contract for compliance testing oversight shall be prohibited from conducting any other commercial medical cannabis testing in this state.

     (8)  Cannabis research facilities shall be subject to a one-time nonrefundable application fee of Ten Thousand Dollars ($10,000.00) and an annual license fee of Fifteen Thousand Dollars ($15,000.00).  A research facility at any university or college in this state shall be exempt from all fees imposed under this section.

     (9)  No individual or business entity shall have a direct or indirect ownership or economic interest of greater than ten percent (10%) in:

          (a)  More than one (1) cannabis cultivation facility license;

          (b)  More than one (1) cannabis processing facility license; and

          (c)  More than five (5) medical cannabis dispensary licenses.

     (10)  Minimum qualifications for applicants for a cannabis cultivation facility, a cannabis processing facility, a medical cannabis dispensary, a medical cannabis transportation entity or a medical cannabis disposal entity license(s) are as follows:

          (a)  An individual applicant for a cannabis cultivation facility, cannabis processing facility, medical cannabis dispensary, medical cannabis transportation entity or medical cannabis disposal license shall be a natural person who:

               (i)  Is at least twenty-one (21) years of age;

              (ii)  Has not previously held a license for a  cannabis cultivation facility, cannabis processing facility,  medical cannabis dispensary, medical cannabis transportation entity or medical cannabis disposal entity that has been revoked;

               (iii)  Has not been convicted of a disqualifying felony offense;

              (iv)  If possessing a professional or occupational license, that the license is in good standing;

               (v)  Has submitted a sworn statement indicating that he or she is a true and actual owner of the entity for which the license is desired, and that he or she intends to carry on the business authorized for himself or herself and the entity and not as the agent for any other entity * * *.;

              (vi)  Has no outstanding tax delinquencies owed to the State of Mississippi;

               (vii)  Is not serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022;

               (viii)  Is not the spouse of a person serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022; and

          (b)  If the applicant is applying on behalf of an entity, in addition to paragraph (a) of this subsection, the individual applicant shall:

              (i)  Be legally authorized to submit an application on behalf of the entity;

               (ii)  Serve as the primary point of contact with the MDOR and MDOH;

              (iii)  Submit sufficient proof that the entity has no owner, board member, officer, or anyone with an economic interest in the entity who:

                    1.  Is under the age of twenty-one (21);

                   2.  Has previously been an owner of a medical cannabis dispensary, cannabis cultivation facility, a cannabis processing facility, medical cannabis transportation entity or medical cannabis disposal entity that has had its license revoked;

                   3.  Has been convicted of a disqualifying felony offense;

                   4.  Owes delinquent taxes to the State of Mississippi;

                   5.  Is serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022; and

                   6.  Is the spouse of a person serving as a member of the Mississippi Senate or Mississippi House of Representatives through December 31, 2022; and

              (iv)  Submit sufficient proof that if an owner, board member, officer or anyone with an economic interest in the entity has or had a professional or occupational license, that the license is in good standing.

     (11)  [Repealed]

     (12)  A micro-cultivator or a micro-processor shall both meet the minimum qualifications in subsection (10) of this section and shall also submit sufficient proof of the following:

          (a)  If a natural person, proof that the person has been a resident of the State of Mississippi and a citizen of the United States of America for at least three (3) years prior to the application date; or

          (b)  If a business entity, provide proof that:

              (i)  It was registered as an entity with the Secretary of State in Mississippi; and

              (ii)  One-hundred percent (100%) of the equity ownership interests in the entity are held by individuals who have been residents of the State of Mississippi and citizens of the United States of America for at least three (3) consecutive years prior to the application date.

     (13)  For purposes of this section, it shall be sufficient to prove Mississippi residency for the individual(s) to submit two (2) of the following source documents:

          (a)  Mississippi Tax Return Form 80-105 or Form 80-205 for each of the three (3) years preceding the application without schedules, worksheets, or attachments, and redacted to remove all financial information and all but the last four (4) digits of the individual's social security number for the three (3) years preceding the application;

          (b)  Ownership, lease, or rental documents for place of primary domicile for the three (3) years preceding the application;

          (c)  Billing statements, including utility bills for the three (3) years preceding the application; or

          (d)  Vehicle registration for the three (3) years preceding the application.

     (14)  Ownership in a cannabis cultivation facility license, cannabis processing facility license or a medical cannabis dispensary license or investment in a business that supports or benefits from such a license shall not disqualify or otherwise negatively impact the license or finding of suitability of such owner who is otherwise engaged in any other form of business operation in the state, if such business requires the owner to hold a license or be found suitable under state law.

     (15)  Any business or state entity applying for registration as a medical cannabis establishment must meet all the requirements specified in this chapter.

     (16)  A prospective medical cannabis establishment shall submit all of the following:

          (a)  An application, including:

               (i)  The legal name of the prospective medical cannabis establishment;

              (ii)  The physical address of the prospective medical cannabis establishment, which shall not be within one thousand (1,000) feet of the nearest property boundary line of a school, church or child care facility which exists or has acquired necessary real property for the operation of such facility before the date of the medical cannabis establishment application unless the entity has received approval from the school, church or child care facility and received the applicable waiver from their licensing agency, provided that the main point of entry of the cannabis establishment is not located within five hundred (500) feet of the nearest property boundary line of any school, church or child care facility;

              (iii)  The name of each principal officer and board member of the proposed medical cannabis establishment; and

              (iv)  Any additional information requested by the MDOR and MDOH.

          (b)  Operating procedures consistent with rules and regulations for oversight of the proposed medical cannabis establishment, including procedures to ensure accurate record keeping and adequate security measures.

          (c)  If the municipality or county where the proposed medical cannabis establishment would be located has enacted zoning restrictions, a sworn statement certifying that the proposed medical cannabis establishment is in compliance with the restrictions.

          (d)  If the municipality or county where the proposed medical cannabis establishment would be located requires a local registration, license or permit, then proof of receiving such registration, license or permit.

          (e)  If the application is on behalf of an entity, verification that none of the principal officers or board members have served as a principal officer or board member for a medical cannabis establishment that has had its license revoked.

          (f)  If the application is on behalf of an entity, verification that none of the principal officers or board members is under twenty-one (21) years of age.

     (17)  If a dispensary license is issued to an applicant that is still constructing the licensed premises, the applicant must complete construction and fulfill all obligations required by the Department of Revenue to open for business within eighteen (18) months, or the license shall be revoked.

     (18)  The MDOR and MDOH shall issue a renewal registration certificate within ten (10) days of receipt of the prescribed renewal application and renewal fee from a medical cannabis establishment if its license is not under suspension and has not been revoked.

     (19)  A licensing agency shall require disclosure only of persons, entities or affiliated entities who directly or indirectly own ten percent (10%) or more of a medical cannabis establishment issued a license by the licensing agency.

     (20)  Otherwise eligible applicants for licenses to operate as medical cannabis establishments under this chapter shall not be disqualified from receipt of a license based on:

          (a)  Their location on Mississippi Choctaw Indian Reservation Lands; or

          (b)  The involvement of the Mississippi Band of Choctaw Indians or any entity owned or operated by the Mississippi Band of Choctaw Indians as an owner or co-owner of such license, provided that such license shall be subject to revocation for material noncompliance with this chapter on the same basis as any other license.

     (21)  A cannabis processing facility that produces edible cannabis products shall hold a permit to operate as a food establishment and shall comply with all applicable requirements for food establishments as set by the MDOH.

 * * * (22)  Any cannabis that contains less than three tenths percent (.3%) THC that was addressed by the 2018 Farm Bill, Public Law No. 115‑334, shall be exempt from regulations applicable to medical cannabis establishments licensed under this chapter.

     SECTION 21.  Section 41-137-39, Mississippi Code of 1972, as amended by Senate Bill No. 2857, 2024 Regular Session, is amended as follows:

     41-137-39.  (1)  (a) * * *  Medical cannabis establishments shall conduct a background check into the criminal history of every person seeking to become a principal officer, board member, agent, volunteer, or employee before the person begins working at or for the medical cannabis establishment.  The MDOH shall obtain criminal records background checks on all persons applying to become a licensee, an agent, or representative as defined herein, of a medical cannabis establishment.  This shall include performing criminal records background checks on all potential employees, current employees, or representatives/agents of the MDOH Medical Cannabis Program.  The required criminal history background includes information provided by the Federal Bureau of Investigation.

          (b) * * *  Every person seeking to become a principal officer, board member, agent, volunteer, or employee shall apply for or authorize the division to obtain state and national criminal background checks to be conducted by the Mississippi Justice Information Center of the Department of Public Safety and the Federal Bureau of Investigation.  For the purposes of this section, an applicant is any person who registers with or applies for an initial medical cannabis work permit, or a renewal of a medical cannabis work permit.  Such a person or applicant may also be defined as an agent, an employee, a representative, etc. as further defined and sometimes used interchangeably as referenced in this section.

          (c) * * *  Such criminal background checks shall conform to the applicable federal standards, and shall include the taking of fingerprints.  For purposes of this section, an agent is a person who acts for or on behalf of, or who represents a medical cannabis establishment while in the course of business or employment with the Mississippi Medical Cannabis Program and may also be referred to as an agent, a representative, or vice versa.

          (d) * * *  The applicant shall authorize the release of such criminal background checks to the MDOH, and shall be responsible for the payment of any fee associated with the criminal background checks.  Representative means a principal officer, owner of ten percent (10%) or greater economic interest in a medical cannabis establishment with direct or indirect interest, officer, director, manager, employee, agent, volunteer, or other type representative of a registered medical cannabis licensee establishment.

          (e) * * *  Upon completion of such criminal background checks, the Mississippi Justice Information Center of the Department of Public Safety shall forward to the MDOH all information obtained concerning the applicant.  Principal officer means a person(s) who has ultimate responsibility for implementing the decisions of a cannabis testing facility or other such medical cannabis establishment and includes, but are not necessarily limited to, the Chief Executive Officer (CEO), Chief Administrative Office (CAO), Chief Financial Officer, (CFO), as applicable. Elected or appointed, the board as a whole creates agency policies and oversees the agency's managerial positions.

          (f)  Board member means an individual on a medical cannabis establishment's company or agency board which serves as an organization's governing body.

          (g)  Principal owner means the primary owner of a medical cannabis establishment, but often may be the sole owner.

          (h)  Any and every person/applicant seeking to become an owner or principal owner, principal officer, or officer, board member, director, manager, agent/representative, employee, care giver, or volunteer of a medical cannabis establishment shall apply for, or authorize the MDOH to obtain state and national criminal background checks to be conducted by the Mississippi Justice Information Center of the Department of Public Safety and the Federal Bureau of Investigation.

          (i)  Such criminal background checks shall conform to the applicable federal standards and shall include the taking of fingerprints.

          (j)  Once the Mississippi Justice Information Center of the Department of Public Safety completes a state level criminal history background check, they will forward the fingerprints to the Federal Bureau of Investigation for a national criminal history background check.

          (k)  The person seeking to become an agent/representative of a medical cannabis establishment shall authorize the release of such criminal background check to the MDOH and shall be responsible for the payment of any fee associated with the criminal background checks.

          (l)  The Mississippi Justice Information Center of the Department of Public Safety shall forward to the MDOH all information obtained concerning the applicant.  MDOH will not disseminate the information and will only use such information as required to fulfill the purposes of this act.

     (2)  A medical cannabis establishment may not employ any person who:

          (a)  Was convicted of a disqualifying felony offense; or

          (b)  Is under twenty-one (21) years of age.

     (3)  The operating documents of a medical cannabis establishment must include procedures for the oversight of the medical cannabis establishment and procedures to ensure accurate record keeping and adequate security measures.

     (4)  A medical cannabis establishment shall implement appropriate security measures designed to deter and prevent the theft of medical cannabis and unauthorized entrance into areas containing medical cannabis.

     (5)  All cultivation, harvesting, processing and packaging of medical cannabis must take place in an enclosed, locked and secure facility with a physical address provided to the MDOH during the licensing and registration process.  The facility shall be equipped with locks or other security devices that permit access only by agents of the medical cannabis establishment, emergency personnel or adults who are twenty-one (21) years of age and older and who are accompanied by medical cannabis establishment agents.

     (6)  No medical cannabis establishment other than a cannabis processing facility or cannabis research facility may * * * produce process cannabis concentrates, cannabis extractions, or other cannabis products.

     (7)  A medical cannabis establishment may not share office space with or refer patients to a practitioner.

     (8)  Medical cannabis establishments are subject to inspection by the MDOR and MDOH during business hours.

     (9)  Before medical cannabis may be dispensed to a cardholder, a medical cannabis dispensary agent must:

          (a)  Require that the individual present a registry identification card;

          (b)  Make a diligent effort to verify that the registry identification card presented to the dispensary is valid;

          (c)  Make a diligent effort to verify that the person presenting the registry identification card is the person identified on the registry identification card presented to the medical cannabis dispensary agent; and

          (d)  Not believe that the amount of medical cannabis dispensed would cause the person to possess more than the allowable amount of medical cannabis.

     (10)  A medical cannabis establishment shall not sell more than the allowable amount of medical cannabis to a cardholder. * * *  A resident cardholder shall not obtain more than a total of six (6) MMCEUs of allowable medical cannabis in a week from a dispensary or a combination of dispensaries.  A resident cardholder shall not obtain more than a total of twenty-four (24) MMCEUs of allowable medical cannabis in thirty (30) days from a dispensary or a combination of dispensaries.

     The possession limit for resident cardholders of the allowable amount of medical cannabis shall be a total of twenty-eight (28) MMCEUs.  There shall not be a possession limit on intoxicating hemp products or nonconsumable medical cannabis, including, but not limited to, suppositories, ointments, soaps, and lotions or other topical agents.

     (11)  For purposes of this chapter, total THC is defined as THCA multiplied by .877 plus THC Delta 9 and all other psychoactive forms or isomers of THC added together.  A medical cannabis establishment shall not sell cannabis flower or trim that has a potency of greater than thirty percent (30%) total THC.  A medical cannabis dispensary shall not sell cannabis tinctures, oils or concentrates that have a potency of greater than sixty percent (60%) total THC.  Cannabis products that have a potency of over thirty percent (30%) total THC shall be clearly labeled as "extremely potent."  Edible cannabis products, including food or drink products, that have been combined with usable cannabis or cannabis products shall be physically demarked and labeled with a clear determination of how much total THC is in a single-serving size and how much THC is in the entire package.

     A medical cannabis product shall contain a notice of harm regarding the use of cannabis products.  Edible cannabis products shall be homogenized to ensure uniform disbursement of cannabinoids throughout the product.  All molded edible cannabis products shall be presented in the form of geometric shapes and shall not be molded to contain any images or characters designed or likely to appeal to minors, such as cartoons, toys, animals or children.

     (12)  A dispensary may not dispense more than the allowable amount of cannabis to a registered qualifying patient or a nonresident cardholder, directly or via a registered designated caregiver.  Dispensaries shall ensure compliance with this limitation by maintaining internal, confidential records that include records specifying how much medical cannabis is being dispensed to the registered qualifying patient or nonresident cardholder and whether it was dispensed directly to a registered qualifying patient, nonresident cardholder or to the registered designated caregiver.

     (13)  A nonresident cardholder shall not obtain more than a total of six (6) MMCEUs of allowable medical cannabis in a week from a dispensary or a combination of dispensaries.  A nonresident cardholder shall not obtain more than a total of twelve (12) MMCEUs of allowable cannabis from a dispensary or a combination of dispensaries in a fifteen-day period.

     (14)  A nonresident may apply to receive a nonresident registry identification card up to thirty (30) days before arriving in Mississippi.  A nonresident registry identification card shall be valid for fifteen (15) days.  After the expiration of the card, a nonresident may apply for a renewal of the card and may be granted another card which shall be valid for another fifteen-day period.  A nonresident registry identification card shall only be valid, at a maximum, for two (2) separate periods of fifteen (15) days in a three-hundred-sixty-five-day period.  An applicant may indicate on his or her application the specific time period that he or she wishes for the card to be valid.  The possession limit of the allowable amount of medical cannabis for nonresident cardholders shall be fourteen (14) MMCEUs.

     (15)  A medical cannabis dispensary agent or employee shall not issue a written certification.  Employees and agents of a medical cannabis dispensary shall complete at least eight (8) hours of continuing education in medical cannabis as regulated by the MDOR in order to be certified to work at a medical cannabis dispensary.  After the first year of employment, these employees shall complete five (5) hours of continuing education in medical cannabis annually to maintain this certification.

     (16)  Notwithstanding any other provision to the contrary, a patient with a debilitating medical condition who is between eighteen (18) years to twenty-five (25) years of age is not eligible for a medical cannabis registry identification card unless two (2) practitioners from separate medical practices have diagnosed the patient as having a debilitating medical condition after an in-person consultation.  One (1) of these practitioners must be a physician or doctor of osteopathic medicine.

     If one (1) of the recommending practitioners is not the patient's primary care practitioner, the recommending practitioner shall review the records of a diagnosing practitioner.  The requirement that the two (2) practitioners be from separate medical practices does not apply if the patient is homebound or if the patient had a registry identification card before the age of eighteen (18).

     (17)  Except as otherwise provided in this section, a medical cannabis establishment shall not allow an individual who is younger than twenty-one (21) years old to enter the premises of the establishment unless the individual possesses a registry identification card and is accompanied by his or her legal guardian.

     (18)  A medical cannabis establishment shall only purchase, grow, cultivate, and use cannabis that is grown and cultivated in this state.

     (19)  Any medical cannabis that is grown and cultivated in this state shall not be transported outside of this state.  A hemp grower, hemp processor, medical cannabis cultivator and medical cannabis processor shall be permitted to purchase intoxicating hemp products and hemp-derived ingredients, as applicable, from outside of the state, provided that the intoxicating hemp products, or hemp-derived ingredients, as applicable, were produced using, or are, lawful hemp grown under another state's U.S.D.A. approved hemp program, and the intoxicating hemp products are in compliance with this act, the Mississippi Intoxicating Hemp Regulation Act, and the Agriculture Improvement Act of 2018 and any subsequent authorizations.  Such materials shall be subject to laboratory testing requirements set forth in this act.  A medical cannabis processor shall provide proof of compliance with the testing requirements of this act to the Department of Health.  A medical cannabis processor shall upload each intoxicating hemp product into the seed-to-sale tracking system.

     ( * * *1920)  Employees of all medical cannabis establishments shall apply for a work permit with the MDOH and MDOR, as applicable, before beginning employment with any establishment.  The licensing agency for the respective medical cannabis establishment may issue work permits to these individuals.  These licensing agencies shall maintain a work registry of all applicants and work permits issued.  The fee for a work permit shall be Twenty-five Dollars ($25.00) and the permit shall be valid for five (5) years.  Work permits shall be the property of the employee and shall not be transferable to other employees.

     ( * * *2021)  For purposes of this subsection, "plant growth regulator cannabis" shall mean a cannabis plant whose growth and structure has been modified using plant growth hormones.  A cannabis cultivation facility shall not cultivate and a cannabis dispensary shall not sell, transfer or provide for consumption plant growth regulator cannabis.

     ( * * *2122)  A medical cannabis dispensary shall only make medical cannabis sales to cardholders inside the dispensary.  A medical cannabis dispensary shall not sell or otherwise convey medical cannabis to a cardholder through the means of a drive-through, curbside delivery or other delivery outside the premises of the dispensary.  Any topical cannabis product that is purchased by a dispensary from a licensed processor, and that is not ingested by the liver, may be sold to a cardholder or any person over the age of twenty-one (21) years old who is not a cardholder.  Any intoxicating hemp product may be sold by a medical cannabis dispensary to a cardholder or any person over the age of twenty-one (21) years old who is not a cardholder.  Such products * * * shall may be placed in an area of the dispensary that does not require access with a registry identification card; provided, however, that all such products shall be placed in an area of the store that is separate and distinguishable from the area of the store that offers medical cannabis.

     ( * * *2223)  Any and all contracts or agreements entered into by the MDOH and MDOR for information technology software, hardware, and/or services for the purpose of implementing and/or operating under the Mississippi Medical Cannabis Act shall include language reasonably limiting the ability of the vendor to escalate the ongoing cost of such software, hardware, and/or services during the term of the contract, including any amendments and/or extensions.

     ( * * *2324)  The MDOR and MDOH shall not share the name, address or personal data of a registry identification cardholder to any federal government entity.

     (25)  Any finished hemp product intended for human or animal consumption that contains greater than ten (10) milligrams of total THC per serving and one hundred (100) milligrams per container shall not be sold or transferred to consumers in Mississippi.  Nothing in this section shall prohibit the sale of intoxicating hemp products to medical cannabis establishments where such intoxicating hemp products were produced in compliance with this act and applicable state law.

     SECTION 22.  Section 41-137-45, Mississippi Code of 1972, is amended as follows:

     41-137-45.  (1)  It shall be unlawful for any person or entity to cultivate, process, transport, use, possess, purchase, sell or transfer cannabis except as authorized by this chapter.

     (2)  A cardholder or medical cannabis establishment that purposely or knowingly fails to provide a notice required by Section 41-137-31 is guilty of a civil offense, punishable by a fine of no more than One Thousand Five Hundred Dollars ($1,500.00), which may be assessed and collected by the licensing agency.

     (3)  A medical cannabis establishment or an agent of a medical cannabis establishment that purposely, knowingly, or recklessly sells or otherwise transfers medical cannabis other than to a cardholder, a nonresident cardholder, or to a medical cannabis establishment or its agent as authorized under this chapter is guilty of a felony punishable by a fine of not more than Ten Thousand Dollars ($10,000.00), or by commitment to the custody of the Department of Corrections for not more than two (2) years, or both.  A person convicted under this subsection may not continue to be affiliated with the medical cannabis establishment and is disqualified from further participation in the medical cannabis program under this chapter.

     (4)  A cardholder or nonresident cardholder who purposely, knowingly, or recklessly sells or otherwise transfers medical cannabis to a person or other entity is guilty of a felony punishable by a fine of not more than Three Thousand Dollars ($3,000.00), or by commitment to the custody of the Department of Corrections for not more than two (2) years, or both.  A person convicted under this subsection is disqualified from further participation in the medical cannabis program under this chapter.     (5)  A person who purposely, knowingly, or recklessly makes a false statement to a law enforcement official about any fact or circumstance relating to the medical use of cannabis to avoid arrest or prosecution is guilty of a misdemeanor punishable by a fine of not more than One Thousand Dollars ($1,000.00), by imprisonment in the county jail for not more than ninety (90) days, or both.  If a person convicted of violating this subsection is a cardholder, the person is disqualified from further participation in the medical cannabis program under this chapter.

     (6)  A person who purposely submits false records or documentation for an application for a license for a medical cannabis establishment under this chapter is guilty of a felony punishable by a fine of not more than Five Thousand Dollars ($5,000.00), or by commitment to the custody of the Department of Corrections for not more than two (2) years, or both.  A person convicted under this subsection may not continue to be affiliated with the medical cannabis establishment and is disqualified from further participation in the medical cannabis program under this chapter.

     (7)  A practitioner who purposely refers patients to a specific medical cannabis establishment or to a registered designated caregiver, who advertises in a medical cannabis establishment, or who issues written certifications while holding a financial interest in a medical cannabis establishment, is guilty of a civil offense for every false certification and shall be fined up to Five Thousand Dollars ($5,000.00) by the MDOH.

     (8)  Any person, including an employee or official of an agency or local government, who purposely, knowingly, or recklessly breaches the confidentiality of information obtained under this chapter is guilty of a misdemeanor punishable by a fine of not more than One Thousand Dollars ($1,000.00), or by imprisonment for not more than one hundred eighty (180) days in the county jail, or both.

     (9)  No person, other than a cannabis or hemp processing facility or its agents, complying with this chapter, or Chapter 25 of Title 69, Mississippi Code of 1972, as applicable to hemp operations, and the rules and regulations promulgated under * * * it those chapters, may extract compounds from cannabis that involves a chemical extraction process using a nonhydrocarbon-based or other solvent, such as water, vegetable glycerin, vegetable oils, animal fats, steam distillation, food-grade ethanol, or hydrocarbon-based solvent carbon dioxide.  No person may extract compounds from cannabis using ethanol in the presence or vicinity of an open flame.  It shall be a felony punishable by commitment to the custody of the Mississippi Department of Corrections for up to three (3) years and a Ten Thousand Dollar ($10,000.00) fine for any person to purposely, knowingly, or recklessly violate this subsection.

     (10)  A medical cannabis establishment is guilty of a civil offense for any purposeful, knowing or reckless violation of this chapter or the rules and regulations issued under this chapter where no penalty has been specified, and shall be fined not more than Five Thousand Dollars ($5,000.00) for each such violation by its licensing agency.

     (11)  The penalties provided for under this section are in addition to any other criminal, civil or administrative penalties provided for under law, rule or regulation.

     (12)  In addition to peace officers within their jurisdiction, all law enforcement officers of MDOH and MDOR may enforce the provisions made unlawful by this chapter.

     (13)  It is unlawful for any person or entity to sell or transfer intoxicating hemp products to individuals in the State of Mississippi except as authorized by this chapter.  Nothing in this act shall prohibit interstate transport of hemp as allowed under federal law and the Mississippi Intoxicating Hemp Regulation Act.

(14)  In addition to any other penalty, fine or conviction, as applicable, a person or business entity that purposely, knowingly, or recklessly sells or otherwise transfers intoxicating hemp products to a person in the State of Mississippi except as authorized under this chapter is guilty of a misdemeanor punishable by a fine of not more than Five Thousand Dollars ($5,000.00), or by commitment to the custody of the Department of Corrections for not more than one (1) year, or both.  A person convicted under this subsection is disqualified from further participation in the medical cannabis program under this chapter and the hemp program under the Mississippi Intoxicating Hemp Regulation Act.

     (15)  Notwithstanding the foregoing, nothing in this section shall prohibit:

          (a)  Any licensed medical cannabis establishment from making, purchasing, selling, giving away, exchanging, distributing, marketing, or otherwise holding out for sale any cannabis product or ancillary product in accordance with the Medical Cannabis Act;

          (b)  The sale of an intoxicating hemp product to a medical cannabis cultivator or processor by an entity operating in accordance with the Agricultural Improvement Act of 2018, any subsequent authorizations and applicable state law.

     (16)  In addition to any other enforcement authority previously granted thereto, the Department of Health, Department of Revenue, and Department of Agriculture and Commerce, as applicable, may each investigate, either on the basis of complaints filed with it or on its own initiative through compliance visits, reviews or audits, instances of suspected violations of any nature, including, but not limited to:

          (a)  The inversion or diversion of medical cannabis, medical cannabis products, intoxicating hemp products, ancillary products or of any other matter that may violate the provisions of this act or pose a serious danger to the public;

          (b)  The sale of medical cannabis, medical cannabis products, intoxicating hemp products or ancillary products by an unlicensed entity; or

          (c)  The sale of medical cannabis, medical cannabis products, intoxicating hemp products or ancillary products by an entity to anyone who is ineligible to receive such product under the laws of this state.

     (17)  On the basis of information developed during such an investigation, any of the agencies listed in subsection (16) of this section may exercise any number of actions including:

          (a)  To revoke, suspend or refuse to renew any license issued by the licensing agency;

          (b)  Deny an application for a license;

          (c)  Reprimand, fine and/or take any other actions in relation to a license, as the licensing agency may deem proper under the circumstances; or

          (d)  Seize medical cannabis, medical cannabis products, intoxicating hemp products or ancillary products that were used in violation of the laws of this state.

     (18)  In cases where violations of this chapter have been substantiated, the licensing agency may assess a monetary penalty or recoupment of costs for those reasonable costs that are expended by the licensing agency in the investigation and conduct of a proceeding for the compliance issue or violation that is the subject matter of the hearing, including, but not limited to, the costs of process service, court reporters, expert witnesses and investigations.  The licensing agency shall determine the amount of investigative fees and costs owed by an individual or entity that violated the provisions of this chapter, as applicable, based on an itemized accounting after the investigation has been officially completed and a final determination or action has been determined.

     (19)  A dispensary shall not sell, transfer or distribute any intoxicating hemp product to a consumer online, or via electronic or digital application.

     SECTION 23.  Section 41-137-13, Mississippi Code of 1972, is amended as follows:

     41-137-13.  (1)  This chapter shall not be construed to do any of the following:

          (a)  Require an organization for managed care, health benefit plan, private health insurer, government medical assistance program, employer, property and casualty, or workers' compensation insurer or self-insured group providing coverage for a medical, pharmacy or health care service to pay for or reimburse any other individual or entity for costs associated with the medical use of cannabis;

          (b)  Require any employer to permit, accommodate, or allow the medical use of medical cannabis, or to modify any job or working conditions of any employee who engages in the medical use of medical cannabis or who for any reason seeks to engage in the medical use of medical cannabis;

          (c)  Prohibit any employer from refusing to hire, discharging, disciplining, or otherwise taking an adverse employment action against an individual with respect to hiring, discharging, tenure, terms, conditions, or privileges of employment as a result, in whole or in part, of that individual's medical use of medical cannabis, regardless of the individual's impairment or lack of impairment resulting from the medical use of medical cannabis;

          (d)  Prohibit or limit the ability of any employer from establishing or enforcing a drug-testing policy;

          (e)  Interfere with, impair or impede any federal restrictions or requirements on employment or contracting, including, but not limited to, regulations adopted by the United States Department of Transportation in Title 49, Code of Federal Regulations;

          (f)  Permit, authorize, or establish any individual's right to commence or undertake any legal action against an employer for refusing to hire, discharging, disciplining or otherwise taking an adverse employment action against an individual with respect to hiring, discharging, tenure, terms, conditions or privileges of employment due to the individual's medical use of medical cannabis;

          (g)  Affect, alter or otherwise impact the workers' compensation premium discount available to employers who establish a drug-free workplace program in accordance with Section 71-3-201 et seq.;

          (h)  Affect, alter or otherwise impact an employer's right to deny or establish legal defenses to the payment of workers' compensation benefits to an employee on the basis of a positive drug test or refusal to submit to or cooperate with a drug test, as provided under Section 71-3-7 and Section 71-3-121; or

          (i)  Affect, alter or supersede any obligation or condition imposed on a parolee, probationer or an individual participating in a pretrial diversion program or other court-ordered substance abuse rehabilitation program.

     (2)  This chapter does not authorize any individual to engage in, and does not prevent the imposition of any civil, criminal or other penalties for engaging in, the following conduct:

          (a)  Acting with negligence, gross negligence, recklessness, in breach of any applicable professional or occupational standard of care, or to effect an intentional wrong, as a result, in whole or in part, of that individual's medical use of medical cannabis;

          (b)  Possessing medical cannabis or otherwise engaging in the medical use of medical cannabis in any correctional facility, unless the correctional facility has elected to allow the cardholder to engage in the use of medical cannabis;

          (c)  Smoking medical cannabis or a hemp product, including, but not limited to, an intoxicating hemp product, in a public place or in a motor vehicle; for purposes of this paragraph (c), the term "smoking" includes vaping and any other method of inhalation of medical cannabis or a hemp product, as applicable;

          (d)  Operating, navigating, or being in actual physical control of any motor vehicle, aircraft, train, motorboat or other conveyance in a manner that would violate Section 59-23-7, Section 63-11-30 or federal law as a result, in whole or in part, of that individual's medical use of medical cannabis;

          (e)  Possessing medical cannabis in excess of the allowable amount of medical cannabis; or

          (f)  Consumption, by a registered designated caregiver, of cannabis provided for use to a registered qualifying patient.

     SECTION 24.  Sections 6 through 9 of this act shall be codified in Article 4 of Chapter 25, Title 69, Mississippi Code of 1972.

     SECTION 25.  Section 25-9-107, Mississippi Code of 1972, is amended as follows:

     25-9-107.  The following terms, when used in this chapter, unless a different meaning is plainly required by the context, shall have the following meanings:

          (a)  "Board" means the State Personnel Board created under the provisions of this chapter.

          (b)  "State service" means all employees of state departments, agencies and institutions as defined herein, except those officers and employees excluded by this chapter.

          (c)  "Nonstate service" means the following officers and employees excluded from the state service by this chapter.  The following are excluded from the state service:

              (i)  Members of the State Legislature, their staff and other employees of the legislative branch;

              (ii)  The Governor and staff members of the immediate Office of the Governor;

              (iii)  Justices and judges of the judicial branch or members of appeals boards on a per diem basis;

              (iv)  The Lieutenant Governor, staff members of the immediate Office of the Lieutenant Governor and officers and employees directly appointed by the Lieutenant Governor;

               (v)  Officers and officials elected by popular vote and persons appointed to fill vacancies in elective offices;

              (vi)  Members of boards and commissioners appointed by the Governor, Lieutenant Governor or the State Legislature;

              (vii)  All academic officials, members of the teaching staffs and employees of the state institutions of higher learning, the Mississippi Community College Board, and community and junior colleges;

              (viii)  Officers and enlisted members of the National Guard of the state;

               (ix)  Prisoners, inmates, student or patient help working in or about institutions;

              (x)  Contract personnel; provided that any agency which employs state service employees may enter into contracts for personal and professional services only if such contracts are approved in compliance with the rules and regulations promulgated by the Public Procurement Review Board under Section 27-104-7.  Before paying any warrant for such contractual services in excess of Seventy-five Thousand Dollars ($75,000.00), the Auditor of Public Accounts, or the successor to those duties, shall determine whether the contract involved was for personal or professional services, and, if so, was approved by the Public Procurement Review Board as required by law;

              (xi)  Part-time employees; however, part-time employees shall only be hired into authorized employment positions classified by the board, shall meet minimum qualifications as set by the board, and shall be paid in accordance with the Variable Compensation Plan as certified by the board;

               (xii)  Persons appointed on an emergency basis for the duration of the emergency; the effective date of the emergency appointments shall not be earlier than the date approved by the State Personnel Director, and shall be limited to thirty (30) working days.  Emergency appointments may be extended to sixty (60) working days by the State Personnel Board;

              (xiii)  Physicians, dentists, veterinarians, nurse practitioners and attorneys, while serving in their professional capacities in authorized employment positions who are required by statute to be licensed, registered or otherwise certified as such, provided that the State Personnel Director shall verify that the statutory qualifications are met prior to issuance of a payroll warrant by the Auditor;

              (xiv)  Personnel who are employed and paid from funds received from a federal grant program which has been approved by the Legislature or the Department of Finance and Administration whose length of employment has been determined to be time-limited in nature.  This subparagraph shall apply to personnel employed under the provisions of the Comprehensive Employment and Training Act of 1973, as amended, and other special federal grant programs which are not a part of regular federally funded programs wherein appropriations and employment positions are appropriated by the Legislature.  Such employees shall be paid in accordance with the Variable Compensation Plan and shall meet all qualifications required by federal statutes or by the Mississippi Classification Plan;

               (xv)  The administrative head who is in charge of any state department, agency, institution, board or commission, wherein the statute specifically authorizes the Governor, board, commission or other authority to appoint said administrative head; however, the salary of such administrative head shall be determined by the State Personnel Board in accordance with the Variable Compensation Plan unless otherwise fixed by statute;

              (xvi)  The State Personnel Board shall exclude top-level positions if the incumbents determine and publicly advocate substantive program policy and report directly to the agency head, or the incumbents are required to maintain a direct confidential working relationship with a key excluded official.  Further, a written job classification shall be approved by the board for each such position, and positions so excluded shall be paid in conformity with the Variable Compensation Plan;

              (xvii)  Employees whose employment is solely in connection with an agency's contract to produce, store or transport goods, and whose compensation is derived therefrom;

              (xviii)  Repealed;

              (xix)  The associate director, deputy directors and bureau directors within the Department of Agriculture and Commerce;

              (xx)  Personnel employed by the Mississippi Industries for the Blind; provided that any agency may enter into contracts for the personal services of MIB employees without the prior approval of the State Personnel Board or the State Personal Service Contract Review Board; however, any agency contracting for the personal services of an MIB employee shall provide the MIB employee with not less than the entry-level compensation and benefits that the agency would provide to a full-time employee of the agency who performs the same services;

               (xxi)  Personnel employed by the Mississippi Department of Wildlife, Fisheries and Parks and the Mississippi Department of Marine Resources as law enforcement trainees (cadets); such personnel shall be paid in accordance with the Colonel Guy Groff State Variable Compensation Plan;

              (xxii)  Administrators and instructional employees under contract or employed by the Mississippi School of the Arts (MSA) established in Section 37-140-1 et seq.;

              (xxiii)  The President of the Mississippi Lottery Corporation and personnel employed by the Mississippi Lottery Corporation;

              (xxiv)  Employees, excluding administrative employees, of the State Veterans Affairs Board who are employed at a veterans home established by the State Veterans Affairs Board under Section 35-1-19;

              (xxv)  Personnel employed by the Mississippi Department of Health whose employment is * * * solely in connection with the department's responsibilities in implementing, administering and enforcing provisions of the Mississippi Medical Cannabis Act, and enforcing any provision of Sections 1 through 23 of this act, as applicable to the department.  This subparagraph shall stand repealed on June 30, 2026; and

              (xxvi)  Personnel employed by the Mississippi Department of Revenue whose employment is * * * solely in connection with the department's responsibilities in implementing, administering and enforcing provisions of the Mississippi Medical Cannabis Act, and enforcing any provision of Sections 1 through 23 of this act, as applicable to the department.  This subparagraph shall stand repealed on June 30, 2026.

          (d)  "Agency" means any state board, commission, committee, council, department or unit thereof created by the Constitution or statutes if such board, commission, committee, council, department, unit or the head thereof, is authorized to appoint subordinate staff by the Constitution or statute, except a legislative or judicial board, commission, committee, council, department or unit thereof.

     SECTION 26.  Section 25-43-1.103, Mississippi Code of 1972, is amended as follows:

     25-43-1.103.  (1)  This chapter applies to all agencies and all proceedings not expressly exempted under this chapter.

     (2)  This chapter creates only procedural rights and imposes only procedural duties.  They are in addition to those created and imposed by other statutes.

     (3)  Specific statutory provisions which govern agency proceedings and which are in conflict with any of the provisions of this chapter shall continue to be applied to all proceedings of any such agency to the extent of such conflict only.

     (4)  The provisions of this chapter shall not be construed to amend, repeal or supersede the provisions of any other law; and, to the extent that the provisions of any other law conflict or are inconsistent with the provisions of this chapter, the provisions of such other law shall govern and control.

     (5)  An agency may grant procedural rights to persons in addition to those conferred by this chapter so long as rights conferred upon other persons by any provision of law are not substantially prejudiced.

     (6)  For the purposes of implementing, administering and/or enforcing the provisions of rules and regulations promulgated pursuant to the Mississippi Medical Cannabis Act, and the provisions in Sections 1 through 23 of this act, as applicable to each department, the Mississippi State Department of Health and the Mississippi Department of Revenue shall be exempted from this chapter from February 2, 2022, through June 30, 2026.  This subsection shall stand repealed on June 30, 2026.

     SECTION 27.  Section 25-53-1, Mississippi Code of 1972, is amended as follows:

     25-53-1.  The Legislature recognizes that in order for the State of Mississippi to receive the maximum use and benefit from information technology and services now in operation or which will in the future be placed in operation, there should be full cooperation and cohesive planning and effort by and between the several state agencies and that it is the responsibility of the Legislature to provide statutory authority therefor.  The Legislature, therefore, declares and determines that for these and other related purposes there is hereby established an agency of state government to be known as the Mississippi Department of Information Technology Services (MDITS).  The Legislature further declares that the Mississippi Department of Information Technology Services (MDITS) shall provide statewide services that facilitate cost-effective information processing and telecommunication solutions.  State agencies shall work in full cooperation with the board of MDITS to identify opportunities to minimize duplication, reduce costs and improve the efficiency of providing common technology services across agency boundaries.  The provisions of this chapter shall not apply to the Department of Human Services for a period of three (3) years beginning July 1, 2017.  The provisions of this chapter shall not apply to the Department of Child Protection Services for a period of three (3) years beginning July 1, 2017.  Through June 30, * * * 2024 2026, the provisions of this chapter shall not apply to the Department of Health and the Department of Revenue for the purposes of implementing, administering and enforcing the provisions of the Mississippi Medical Cannabis Act, and any provision in Sections 1 through 23 of this act that are applicable to the departments individually or jointly.

     SECTION 28.  Section 25-53-5, Mississippi Code of 1972, is amended as follows:

     25-53-5.  The authority shall have the following powers, duties, and responsibilities:

          (a)  (i)  The authority shall provide for the development of plans for the efficient acquisition and utilization of computer equipment and services by all agencies of state government, and provide for their implementation.  In so doing, the authority may use the MDITS' staff, at the discretion of the executive director of the authority, or the authority may contract for the services of qualified consulting firms in the field of information technology and utilize the service of such consultants as may be necessary for such purposes.  Pursuant to Section 25-53-1, the provisions of this section shall not apply to the Department of Human Services for a period of three (3) years beginning on July 1, 2017.  Pursuant to Section 25-53-1, the provisions of this section shall not apply to the Department of Child Protection Services for a period of three (3) years beginning July 1, 2017.

              (ii)  [Repealed]

          (b)  The authority shall immediately institute procedures for carrying out the purposes of this chapter and supervise the efficient execution of the powers and duties of the office of executive director of the authority.  In the execution of its functions under this chapter, the authority shall maintain as a paramount consideration the successful internal organization and operation of the several agencies so that efficiency existing therein shall not be adversely affected or impaired.  In executing its functions in relation to the institutions of higher learning and junior colleges in the state, the authority shall take into consideration the special needs of such institutions in relation to the fields of teaching and scientific research.

          (c)  Title of whatever nature of all computer equipment now vested in any agency of the State of Mississippi is hereby vested in the authority, and no such equipment shall be disposed of in any manner except in accordance with the direction of the authority or under the provisions of such rules and regulations as may hereafter be adopted by the authority in relation thereto.

          (d)  The authority shall adopt rules, regulations, and procedures governing the acquisition of computer and telecommunications equipment and services which shall, to the fullest extent practicable, ensure the maximum of competition between all manufacturers of supplies or equipment or services.  In the writing of specifications, in the making of contracts relating to the acquisition of such equipment and services, and in the performance of its other duties the authority shall provide for the maximum compatibility of all information systems hereafter installed or utilized by all state agencies and may require the use of common computer languages where necessary to accomplish the purposes of this chapter.  The authority may establish by regulation and charge reasonable fees on a nondiscriminatory basis for the furnishing to bidders of copies of bid specifications and other documents issued by the authority.

          (e)  The authority shall adopt rules and regulations governing the sharing with, or the sale or lease of information technology services to any nonstate agency or person.  Such regulations shall provide that any such sharing, sale or lease shall be restricted in that same shall be accomplished only where such services are not readily available otherwise within the state, and then only at a charge to the user not less than the prevailing rate of charge for similar services by private enterprise within this state.

          (f)  The authority may, in its discretion, establish a special technical advisory committee or committees to study and make recommendations on technology matters within the competence of the authority as the authority may see fit.  Persons serving on the Information Resource Council, its task forces, or any such technical advisory committees shall be entitled to receive their actual and necessary expenses actually incurred in the performance of such duties, together with mileage as provided by law for state employees, provided the same has been authorized by a resolution duly adopted by the authority and entered on its minutes prior to the performance of such duties.

          (g)  The authority may provide for the development and require the adoption of standardized computer programs and may provide for the dissemination of information to and the establishment of training programs for the personnel of the various information technology centers of state agencies and personnel of the agencies utilizing the services thereof.

          (h)  The authority shall adopt reasonable rules and regulations requiring the reporting to the authority through the office of executive director of such information as may be required for carrying out the purposes of this chapter and may also establish such reasonable procedures to be followed in the presentation of bills for payment under the terms of all contracts for the acquisition of computer equipment and services now or hereafter in force as may be required by the authority or by the executive director in the execution of their powers and duties.

          (i)  The authority shall require such adequate documentation of information technology procedures utilized by the various state agencies and may require the establishment of such organizational structures within state agencies relating to information technology operations as may be necessary to effectuate the purposes of this chapter.

          (j)  The authority may adopt such further reasonable rules and regulations as may be necessary to fully implement the purposes of this chapter.  All rules and regulations adopted by the authority shall be published and disseminated in readily accessible form to all affected state agencies, and to all current suppliers of computer equipment and services to the state, and to all prospective suppliers requesting the same.  Such rules and regulations shall be kept current, be periodically revised, and copies thereof shall be available at all times for inspection by the public at reasonable hours in the offices of the authority.  Whenever possible no rule, regulation or any proposed amendment to such rules and regulations shall be finally adopted or enforced until copies of the proposed rules and regulations have been furnished to all interested parties for their comment and suggestions.

          (k)  The authority shall establish rules and regulations which shall provide for the submission of all contracts proposed to be executed by the executive director for computer equipment and/or telecommunications or services, including cloud computing, to the authority for approval before final execution, and the authority may provide that such contracts involving the expenditure of less than such specified amount as may be established by the authority may be finally executed by the executive director without first obtaining such approval by the authority.

          (l)  The authority is authorized to consider new technologies, such as cloud computing, to purchase, lease, or rent computer equipment or services and to operate that equipment and use those services in providing services to one or more state agencies when in its opinion such operation will provide maximum efficiency and economy in the functions of any such agency or agencies.

          (m)  Upon the request of the governing body of a political subdivision or instrumentality, the authority shall assist the political subdivision or instrumentality in its development of plans for the efficient acquisition and utilization of computer equipment and services.  An appropriate fee shall be charged the political subdivision by the authority for such assistance.

          (n)  The authority shall adopt rules and regulations governing the protest procedures to be followed by any actual or prospective bidder, offerer or contractor who is aggrieved in connection with the solicitation or award of a contract for the acquisition of computer equipment or services.  Such rules and regulations shall prescribe the manner, time and procedure for making protests and may provide that a protest not timely filed shall be summarily denied.  The authority may require the protesting party, at the time of filing the protest, to post a bond, payable to the state, in an amount that the authority determines sufficient to cover any expense or loss incurred by the state, the authority or any state agency as a result of the protest if the protest subsequently is determined by a court of competent jurisdiction to have been filed without any substantial basis or reasonable expectation to believe that the protest was meritorious; however, in no event may the amount of the bond required exceed a reasonable estimate of the total project cost.  The authority, in its discretion, also may prohibit any prospective bidder, offerer or contractor who is a party to any litigation involving any such contract with the state, the authority or any agency of the state to participate in any other such bid, offer or contract, or to be awarded any such contract, during the pendency of the litigation.

          (o)  The authority shall make a report in writing to the Legislature each year in the month of January.  Such report shall contain a full and detailed account of the work of the authority for the preceding year as specified in Section 25-53-29(3).

     All acquisitions of computer equipment and services involving the expenditure of funds in excess of the dollar amount established in Section 31-7-13(c), or rentals or leases in excess of the dollar amount established in Section 31-7-13(c) for the term of the contract, shall be based upon competitive and open specifications, and contracts therefor shall be entered into only after advertisements for bids are published in one or more daily newspapers having a general circulation in the state not less than fourteen (14) days prior to receiving sealed bids therefor.  The authority may reserve the right to reject any or all bids, and if all bids are rejected, the authority may negotiate a contract within the limitations of the specifications so long as the terms of any such negotiated contract are equal to or better than the comparable terms submitted by the lowest and best bidder, and so long as the total cost to the State of Mississippi does not exceed the lowest bid.  If the authority accepts one (1) of such bids, it shall be that which is the lowest and best.  Through June 30, * * * 2024 2026, the provisions of this paragraph shall not apply to acquisitions of information technology equipment and services made by the Mississippi Department of Health and the Mississippi Department of Revenue for the purposes of implementing, administering and enforcing the provisions of the Mississippi Medical Cannabis Act, and any provision in Sections 1 through 23 of this act that are applicable to the departments individually or jointly.

          (p)  When applicable, the authority may procure equipment, systems and related services in accordance with the law or regulations, or both, which govern the Bureau of Purchasing of the Office of General Services or which govern the Mississippi Department of Information Technology Services procurement of telecommunications equipment, software and services.

          (q)  The authority is authorized to purchase, lease, or rent information technology and services for the purpose of establishing pilot projects to investigate emerging technologies.  These acquisitions shall be limited to new technologies and shall be limited to an amount set by annual appropriation of the Legislature.  These acquisitions shall be exempt from the advertising and bidding requirement.

          (r)  To promote the maximum use and benefit from technology and services now in operation or which will in the future be placed in operation and to identify opportunities, minimize duplication, reduce costs and improve the efficiency of providing common technology services the authority is authorized to:

              (i)  Enter into master agreements for computer or telecommunications equipment or services, including cloud computing, available for shared use by state agencies, * * * institutes institutions of higher learning and governing authorities; and

               (ii)  Enter into contracts for the acquisition of computer or telecommunications equipment or services, including cloud computing, that have been acquired by other entities, located within or outside of the State of Mississippi, so long as it is determined by the authority to be in the best interest of the state.  The acquisitions provided in this paragraph (r) shall be exempt from the advertising and bidding requirements of Section 25-53-1 et seq.

          (s)  All fees collected by the Mississippi Department of Information Technology Services shall be deposited into the Mississippi Department of Information Technology Services Revolving Fund unless otherwise specified by the Legislature.

          (t)  The authority shall work closely with the council to bring about effective coordination of policies, standards and procedures relating to procurement of remote sensing and geographic information systems (GIS) resources.  In addition, the authority is responsible for development, operation and maintenance of a delivery system infrastructure for geographic information systems data.  The authority shall provide a warehouse for Mississippi's geographic information systems data.

          (u)  The authority shall manage one or more State Data Centers to provide information technology services on a cost-sharing basis.  In determining the appropriate services to be provided through the State Data Center, the authority should consider those services that:

              (i)  Result in savings to the state as a whole;

               (ii)  Improve and enhance the security and reliability of the state's information and business systems; and

              (iii)  Optimize the efficient use of the state's information technology assets, including, but not limited to, promoting partnerships with the state institutions of higher learning and community colleges to capitalize on advanced information technology resources.

          (v)  The authority shall increase federal participation in the cost of the State Data Center to the extent provided by law and its shared technology infrastructure through providing such shared services to agencies that receive federal funds.  With regard to state institutions of higher learning and community colleges, the authority may provide shared services when mutually agreeable, following a determination by both the authority and the Board of Trustees of State Institutions of Higher Learning or the Mississippi Community College Board, as the case may be, that the sharing of services is mutually beneficial.

          (w)  The authority, in its discretion, may require new or replacement agency business applications to be hosted at the State Data Center.  With regard to state institutions of higher learning and community colleges, the authority and the Board of Trustees of State Institutions of Higher Learning or the Mississippi Community College Board, as the case may be, may agree that institutions of higher learning or community colleges may utilize business applications that are hosted at the State Data Center, following a determination by both the authority and the applicable board that the hosting of those applications is mutually beneficial.  In addition, the authority may establish partnerships to capitalize on the advanced technology resources of the Board of Trustees of State Institutions of Higher Learning or the Mississippi Community College Board, following a determination by both the authority and the applicable board that such a partnership is mutually beneficial.

          (x)  The authority shall provide a periodic update regarding reform-based information technology initiatives to the Chairmen of the House and Senate Accountability, Efficiency and Transparency Committees.

     From and after July 1, 2018, the expenses of this agency shall be defrayed by appropriation from the State General Fund.  In addition, in order to receive the maximum use and benefit from information technology and services, expenses for the provision of statewide shared services that facilitate cost-effective information processing and telecommunication solutions shall be defrayed by pass-through funding and shall be deposited into the Mississippi Department of Information Technology Services Revolving Fund unless otherwise specified by the Legislature.  These funds shall only be utilized to pay the actual costs incurred by the Mississippi Department of Information Technology Services for providing these shared services to state agencies.  Furthermore, state agencies shall work in full cooperation with the Board of the Mississippi Department of Information Technology Services to identify computer equipment or services to minimize duplication, reduce costs, and improve the efficiency of providing common technology services across agency boundaries.

     SECTION 29.  Section 27-104-7, Mississippi Code of 1972, is amended as follows:

     27-104-7.  (1)  (a)  There is created the Public Procurement Review Board, which shall be reconstituted on January 1, 2018, and shall be composed of the following members:

               (i)  Three (3) individuals appointed by the Governor with the advice and consent of the Senate;

              (ii)  Two (2) individuals appointed by the Lieutenant Governor with the advice and consent of the Senate; and

               (iii)  The Executive Director of the Department of Finance and Administration, serving as an ex officio and nonvoting member.

          (b)  The initial terms of each appointee shall be as follows:

              (i)  One (1) member appointed by the Governor to serve for a term ending on June 30, 2019;

               (ii)  One (1) member appointed by the Governor to serve for a term ending on June 30, 2020;

              (iii)  One (1) member appointed by the Governor to serve for a term ending on June 30, 2021;

              (iv)  One (1) member appointed by the Lieutenant Governor to serve for a term ending on June 30, 2019; and

              (v)  One (1) member appointed by the Lieutenant Governor to serve for a term ending on June 30, 2020.

     After the expiration of the initial terms, all appointed members' terms shall be for a period of four (4) years from the expiration date of the previous term, and until such time as the member's successor is duly appointed and qualified.

          (c)  When appointing members to the Public Procurement Review Board, the Governor and Lieutenant Governor shall take into consideration persons who possess at least five (5) years of management experience in general business, health care or finance for an organization, corporation or other public or private entity.  Any person, or any employee or owner of a company, who receives any grants, procurements or contracts that are subject to approval under this section shall not be appointed to the Public Procurement Review Board.  Any person, or any employee or owner of a company, who is a principal of the source providing a personal or professional service shall not be appointed to the Public Procurement Review Board if the principal owns or controls a greater than five percent (5%) interest or has an ownership value of One Million Dollars ($1,000,000.00) in the source's business, whichever is smaller.  No member shall be an officer or employee of the State of Mississippi while serving as a voting member on the Public Procurement Review Board. 

          (d)  Members of the Public Procurement Review Board shall be entitled to per diem as authorized by Section 25-3-69 and travel reimbursement as authorized by Section 25-3-41.

          (e)  The members of the Public Procurement Review Board shall elect a chair from among the membership, and he or she shall preside over the meetings of the board.  The board shall annually elect a vice chair, who shall serve in the absence of the chair.  No business shall be transacted, including adoption of rules of procedure, without the presence of a quorum of the board.  Three (3) members shall be a quorum.  No action shall be valid unless approved by a majority of the members present and voting, entered upon the minutes of the board and signed by the chair.  Necessary clerical and administrative support for the board shall be provided by the Department of Finance and Administration.  Minutes shall be kept of the proceedings of each meeting, copies of which shall be filed on a monthly basis with the chairs of the Accountability, Efficiency and Transparency Committees of the Senate and House of Representatives and the chairs of the Appropriations Committees of the Senate and House of Representatives.

     (2)  The Public Procurement Review Board shall have the following powers and responsibilities:

          (a)  Approve all purchasing regulations governing the purchase or lease by any agency, as defined in Section 31-7-1, of commodities and equipment, except computer equipment acquired pursuant to Sections 25-53-1 through 25-53-29;

          (b)  Adopt regulations governing the approval of contracts let for the construction and maintenance of state buildings and other state facilities as well as related contracts for architectural and engineering services.

     The provisions of this paragraph (b) shall not apply to such contracts involving buildings and other facilities of state institutions of higher learning which are self-administered as provided under this paragraph (b) or Section 37-101-15(m);

          (c)  Adopt regulations governing any lease or rental agreement by any state agency or department, including any state agency financed entirely by federal funds, for space outside the buildings under the jurisdiction of the Department of Finance and Administration.  These regulations shall require each agency requesting to lease such space to provide the following information that shall be published by the Department of Finance and Administration on its website:  the agency to lease the space; the terms of the lease; the approximate square feet to be leased; the use for the space; a description of a suitable space; the general location desired for the leased space; the contact information for a person from the agency; the deadline date for the agency to have received a lease proposal; any other specific terms or conditions of the agency; and any other information deemed appropriate by the Division of Real Property Management of the Department of Finance and Administration or the Public Procurement Review Board.  The information shall be provided sufficiently in advance of the time the space is needed to allow the Division of Real Property Management of the Department of Finance and Administration to review and preapprove the lease before the time for advertisement begins;

          (d)  Adopt, in its discretion, regulations to set aside at least five percent (5%) of anticipated annual expenditures for the purchase of commodities from minority businesses; however, all such set-aside purchases shall comply with all purchasing regulations promulgated by the department and shall be subject to all bid requirements.  Set-aside purchases for which competitive bids are required shall be made from the lowest and best minority business bidder; however, if no minority bid is available or if the minority bid is more than two percent (2%) higher than the lowest bid, then bids shall be accepted and awarded to the lowest and best bidder.  However, the provisions in this paragraph shall not be construed to prohibit the rejection of a bid when only one (1) bid is received.  Such rejection shall be placed in the minutes.  For the purposes of this paragraph, the term "minority business" means a business which is owned by a person who is a citizen or lawful permanent resident of the United States and who is:

              (i)  Black:  having origins in any of the black racial groups of Africa;

              (ii)  Hispanic:  of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin regardless of race;

              (iii)  Asian-American:  having origins in any of the original people of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands;

              (iv)  American Indian or Alaskan Native:  having origins in any of the original people of North America; or

              (v)  Female;

          (e)  In consultation with and approval by the Chairs of the Senate and House Public Property Committees, approve leases, for a term not to exceed eighteen (18) months, entered into by state agencies for the purpose of providing parking arrangements for state employees who work in the Woolfolk Building, the Carroll Gartin Justice Building or the Walter Sillers Office Building;

          (f)  (i)  Except as otherwise provided in subparagraph (ii) of this paragraph, promulgate rules and regulations governing the solicitation and selection of contractual services personnel, including personal and professional services contracts for any form of consulting, policy analysis, public relations, marketing, public affairs, legislative advocacy services or any other contract that the board deems appropriate for oversight, with the exception of:

                    1.  Any personal service contracts entered into by any agency that employs only nonstate service employees as defined in Section 25-9-107(c);

                    2.  Any personal service contracts entered into for computer or information technology-related services governed by the Mississippi Department of Information Technology Services;

                   3.  Any personal service contracts entered into by the individual state institutions of higher learning;

                   4.  Any personal service contracts entered into by the Mississippi Department of Transportation;

                    5.  Any personal service contracts entered into by the Department of Human Services through June 30, 2019, which the Executive Director of the Department of Human Services determines would be useful in establishing and operating the Department of Child Protection Services;

                   6.  Any personal service contracts entered into by the Department of Child Protection Services through June 30, 2019;

                   7.  Any contracts for entertainers and/or performers at the Mississippi State Fairgrounds entered into by the Mississippi Fair Commission;

                    8.  Any contracts entered into by the Department of Finance and Administration when procuring aircraft maintenance, parts, equipment and/or services;

                   9.  Any contract entered into by the Department of Public Safety for service on specialized equipment and/or software required for the operation of such specialized equipment for use by the Office of Forensics Laboratories;

                   10.  Any personal or professional service contract entered into by the Mississippi Department of Health or the Department of Revenue * * * solely in connection with their respective responsibilities under the Mississippi Medical Cannabis Act, and any provision in Sections 1 through 23 of this act that are applicable to the departments individually or jointly, from February 2, 2022, through June 30, 2026;

                   11.  Any contract for attorney, accountant, actuary auditor, architect, engineer, anatomical pathologist, or utility rate expert services;

                   12.  Any personal service contracts approved by the Executive Director of the Department of Finance and Administration and entered into by the Coordinator of Mental Health Accessibility through June 30, 2022;

                   13.  Any personal or professional services contract entered into by the State Department of Health in carrying out its responsibilities under the ARPA Rural Water Associations Infrastructure Grant Program through June 30, 2026; and

                    14.  And any personal or professional services contract entered into by the Mississippi Department of Environmental Quality in carrying out its responsibilities under the Mississippi Municipality and County Water Infrastructure Grant Program Act of 2022, through June 30, 2026.

     Any such rules and regulations shall provide for maintaining continuous internal audit covering the activities of such agency affecting its revenue and expenditures as required under Section 7-7-3(6)(d).  Any rules and regulation changes related to personal and professional services contracts that the Public Procurement Review Board may propose shall be submitted to the Chairs of the Accountability, Efficiency and Transparency Committees of the Senate and House of Representatives and the Chairs of the Appropriation Committees of the Senate and House of Representatives at least fifteen (15) days before the board votes on the proposed changes, and those rules and regulation changes, if adopted, shall be promulgated in accordance with the Mississippi Administrative Procedures Act.

               (ii)  From and after July 1, 2024, the Public Procurement Review Board shall promulgate rules and regulations that require the Department of Finance and Administration to conduct personal and professional services solicitations as provided in subparagraph (i) of this paragraph for those services in excess of Seventy-five Thousand Dollars ($75,000.00) for the Department of Marine Resources, the Department of Wildlife, Fisheries and Parks, the Mississippi Emergency Management Agency and the Mississippi Development Authority, with assistance to be provided from these entities.  Any powers that have been conferred upon agencies in order to comply with the provisions of this section for personal and professional services solicitations shall be conferred upon the Department of Finance and Administration to conduct personal and professional services solicitations for the Department of Marine Resources, the Department of Wildlife, Fisheries and Parks, the Mississippi Emergency Management Agency and the Mississippi Development Authority for those services in excess of Seventy-five Thousand Dollars ($75,000.00).  The Department of Finance and Administration shall make any submissions that are required to be made by other agencies to the Public Procurement Review Board for the Department of Marine Resources, the Department of Wildlife, Fisheries and Parks, the Mississippi Emergency Management Agency and the Mississippi Development Authority.

     The provisions of this subparagraph (ii) shall stand repealed on June 30, 2027;

          (g)  Approve all personal and professional services contracts involving the expenditures of funds in excess of Seventy-five Thousand Dollars ($75,000.00), except as provided in paragraph (f) of this subsection (2) and in subsection (8);

          (h)  Develop mandatory standards with respect to contractual services personnel that require invitations for public bid, requests for proposals, record keeping and financial responsibility of contractors.  The Public Procurement Review Board shall, unless exempted under this paragraph (h) or under paragraph (i) or (o) of this subsection (2), require the agency involved to submit the procurement to a competitive procurement process, and may reserve the right to reject any or all resulting procurements;

          (i)  Prescribe certain circumstances by which agency heads may enter into contracts for personal and professional services without receiving prior approval from the Public Procurement Review Board.  The Public Procurement Review Board may establish a preapproved list of providers of various personal and professional services for set prices with which state agencies may contract without bidding or prior approval from the board;

              (i)  Agency requirements may be fulfilled by procuring services performed incident to the state's own programs.  The agency head shall determine in writing whether the price represents a fair market value for the services.  When the procurements are made from other governmental entities, the private sector need not be solicited; however, these contracts shall still be submitted for approval to the Public Procurement Review Board.

              (ii)  Contracts between two (2) state agencies, both under Public Procurement Review Board purview, shall not require Public Procurement Review Board approval.  However, the contracts shall still be entered into the enterprise resource planning system;

          (j)  Provide standards for the issuance of requests for proposals, the evaluation of proposals received, consideration of costs and quality of services proposed, contract negotiations, the administrative monitoring of contract performance by the agency and successful steps in terminating a contract;

          (k)  Present recommendations for governmental privatization and to evaluate privatization proposals submitted by any state agency;

          (l)  Authorize personal and professional service contracts to be effective for more than one (1) year provided a funding condition is included in any such multiple year contract, except the State Board of Education, which shall have the authority to enter into contractual agreements for student assessment for a period up to ten (10) years.  The State Board of Education shall procure these services in accordance with the Public Procurement Review Board procurement regulations;

          (m)  Request the State Auditor to conduct a performance audit on any personal or professional service contract;

          (n)  Prepare an annual report to the Legislature concerning the issuance of personal and professional services contracts during the previous year, collecting any necessary information from state agencies in making such report;

          (o)  Develop and implement the following standards and procedures for the approval of any sole source contract for personal and professional services regardless of the value of the procurement:

               (i)  For the purposes of this paragraph (o), the term "sole source" means only one (1) source is available that can provide the required personal or professional service.

               (ii)  An agency that has been issued a binding, valid court order mandating that a particular source or provider must be used for the required service must include a copy of the applicable court order in all future sole source contract reviews for the particular personal or professional service referenced in the court order.

               (iii)  Any agency alleging to have a sole source for any personal or professional service, other than those exempted under paragraph (f) of this subsection (2) and subsection (8), shall publish on the procurement portal website established by Sections 25-53-151 and 27-104-165, for at least fourteen (14) days, the terms of the proposed contract for those services.  In addition, the publication shall include, but is not limited to, the following information:

                   1.  The personal or professional service offered in the contract;

                   2.  An explanation of why the personal or professional service is the only one that can meet the needs of the agency;

                    3.  An explanation of why the source is the only person or entity that can provide the required personal or professional service;

                   4.  An explanation of why the amount to be expended for the personal or professional service is reasonable; and

                   5.  The efforts that the agency went through to obtain the best possible price for the personal or professional service.

               (iv)  If any person or entity objects and proposes that the personal or professional service published under subparagraph (iii) of this paragraph (o) is not a sole source service and can be provided by another person or entity, then the objecting person or entity shall notify the Public Procurement Review Board and the agency that published the proposed sole source contract with a detailed explanation of why the personal or professional service is not a sole source service.

               (v)  1.  If the agency determines after review that the personal or professional service in the proposed sole source contract can be provided by another person or entity, then the agency must withdraw the sole source contract publication from the procurement portal website and submit the procurement of the personal or professional service to an advertised competitive bid or selection process.

                   2.  If the agency determines after review that there is only one (1) source for the required personal or professional service, then the agency may appeal to the Public Procurement Review Board.  The agency has the burden of proving that the personal or professional service is only provided by one (1) source.

                   3.  If the Public Procurement Review Board has any reasonable doubt as to whether the personal or professional service can only be provided by one (1) source, then the agency must submit the procurement of the personal or professional service to an advertised competitive bid or selection process.  No action taken by the Public Procurement Review Board in this appeal process shall be valid unless approved by a majority of the members of the Public Procurement Review Board present and voting.

              (vi)  The Public Procurement Review Board shall prepare and submit a quarterly report to the House of Representatives and Senate Accountability, Efficiency and Transparency Committees that details the sole source contracts presented to the Public Procurement Review Board and the reasons that the Public Procurement Review Board approved or rejected each contract.  These quarterly reports shall also include the documentation and memoranda required in subsection (4) of this section.  An agency that submitted a sole source contract shall be prepared to explain the sole source contract to each committee by December 15 of each year upon request by the committee;

          (p)  Assess any fines and administrative penalties provided for in Sections 31-7-401 through 31-7-423.

     (3)  All submissions shall be made sufficiently in advance of each monthly meeting of the Public Procurement Review Board as prescribed by the Public Procurement Review Board.  If the Public Procurement Review Board rejects any contract submitted for review or approval, the Public Procurement Review Board shall clearly set out the reasons for its action, including, but not limited to, the policy that the agency has violated in its submitted contract and any corrective actions that the agency may take to amend the contract to comply with the rules and regulations of the Public Procurement Review Board.

     (4)  All sole source contracts for personal and professional services awarded by state agencies, other than those exempted under Section 27-104-7(2)(f) and (8), whether approved by an agency head or the Public Procurement Review Board, shall contain in the procurement file a written determination for the approval, using a request form furnished by the Public Procurement Review Board.  The written determination shall document the basis for the determination, including any market analysis conducted in order to ensure that the service required was practicably available from only one (1) source.  A memorandum shall accompany the request form and address the following four (4) points:

          (a)  Explanation of why this service is the only service that can meet the needs of the purchasing agency;

          (b)  Explanation of why this vendor is the only practicably available source from which to obtain this service;

          (c)  Explanation of why the price is considered reasonable; and

          (d)  Description of the efforts that were made to conduct a noncompetitive negotiation to get the best possible price for the taxpayers.

     (5)  In conjunction with the State Personnel Board, the Public Procurement Review Board shall develop and promulgate rules and regulations to define the allowable legal relationship between contract employees and the contracting departments, agencies and institutions of state government under the jurisdiction of the State Personnel Board, in compliance with the applicable rules and regulations of the federal Internal Revenue Service (IRS) for federal employment tax purposes.  Under these regulations, the usual common law rules are applicable to determine and require that such worker is an independent contractor and not an employee, requiring evidence of lawful behavioral control, lawful financial control and lawful relationship of the parties.  Any state department, agency or institution shall only be authorized to contract for personnel services in compliance with those regulations.

     (6)  No member of the Public Procurement Review Board shall use his or her official authority or influence to coerce, by threat of discharge from employment, or otherwise, the purchase of commodities, the contracting for personal or professional services, or the contracting for public construction under this chapter.

     (7)  Notwithstanding any other laws or rules to the contrary, the provisions of subsection (2) of this section shall not be applicable to the Mississippi State Port Authority at Gulfport.

     (8)  Nothing in this section shall impair or limit the authority of the Board of Trustees of the Public Employees' Retirement System to enter into any personal or professional services contracts directly related to their constitutional obligation to manage the trust funds, including, but not limited to, actuarial, custodial banks, cash management, investment consultant and investment management contracts.  Nothing in this section shall impair or limit the authority of the State Treasurer to enter into any personal or professional services contracts involving the management of trust funds, including, but not limited to, actuarial, custodial banks, cash management, investment consultant and investment management contracts.

     (9)  Through December 31, 2024, the provisions of this section related to rental agreements or leasing of real property for the purpose of conducting agency business shall not apply to the Office of Workforce Development created in Section 37-153-7.

     SECTION 30.  Section 31-7-13, Mississippi Code of 1972, is amended as follows:

     31-7-13.  All agencies and governing authorities shall purchase their commodities and printing; contract for garbage collection or disposal; contract for solid waste collection or disposal; contract for sewage collection or disposal; contract for public construction; and contract for rentals as herein provided.

          (a)  Bidding procedure for purchases not over $5,000.00.  Purchases which do not involve an expenditure of more than Five Thousand Dollars ($5,000.00), exclusive of freight or shipping charges, may be made without advertising or otherwise requesting competitive bids.  However, nothing contained in this paragraph (a) shall be construed to prohibit any agency or governing authority from establishing procedures which require competitive bids on purchases of Five Thousand Dollars ($5,000.00) or less.

          (b)  Bidding procedure for purchases over $5,000.00 but not over $75,000.00.  Purchases which involve an expenditure of more than Five Thousand Dollars ($5,000.00) but not more than Seventy-five Thousand Dollars ($75,000.00), exclusive of freight and shipping charges, may be made from the lowest and best bidder without publishing or posting advertisement for bids, provided at least two (2) competitive written bids have been obtained.  Any state agency or community or junior college purchasing commodities or procuring construction pursuant to this paragraph (b) may authorize its purchasing agent, or his designee, to accept the lowest competitive written bid under Seventy-five Thousand Dollars ($75,000.00).  Any governing authority purchasing commodities pursuant to this paragraph (b) may authorize its purchasing agent, or his designee, with regard to governing authorities other than counties, or its purchase clerk, or his designee, with regard to counties, to accept the lowest and best competitive written bid.  Such authorization shall be made in writing by the governing authority and shall be maintained on file in the primary office of the agency and recorded in the official minutes of the governing authority, as appropriate.  The purchasing agent or the purchase clerk, or his designee, as the case may be, and not the governing authority, shall be liable for any penalties and/or damages as may be imposed by law for any act or omission of the purchasing agent or purchase clerk, or his designee, constituting a violation of law in accepting any bid without approval by the governing authority.  The term "competitive written bid" shall mean a bid submitted on a bid form furnished by the buying agency or governing authority and signed by authorized personnel representing the vendor, or a bid submitted on a vendor's letterhead or identifiable bid form and signed by authorized personnel representing the vendor.  "Competitive" shall mean that the bids are developed based upon comparable identification of the needs and are developed independently and without knowledge of other bids or prospective bids.  Any bid item for construction in excess of Five Thousand Dollars ($5,000.00) shall be broken down by components to provide detail of component description and pricing.  These details shall be submitted with the written bids and become part of the bid evaluation criteria.  Bids may be submitted by facsimile, electronic mail or other generally accepted method of information distribution.  Bids submitted by electronic transmission shall not require the signature of the vendor's representative unless required by agencies or governing authorities.

          (c)  Bidding procedure for purchases over $75,000.00.

              (i)  Publication requirement.

                   1.  Purchases which involve an expenditure of more than Seventy-five Thousand Dollars ($75,000.00), exclusive of freight and shipping charges, may be made from the lowest and best bidder after advertising for competitive bids once each week for two (2) consecutive weeks in a regular newspaper published in the county or municipality in which such agency or governing authority is located.  However, all American Recovery and Reinvestment Act projects in excess of Twenty-five Thousand Dollars ($25,000.00) shall be bid.  All references to American Recovery and Reinvestment Act projects in this section shall not apply to programs identified in Division B of the American Recovery and Reinvestment Act.   

                   2.  Reverse auctions shall be the primary method for receiving bids during the bidding process.  If a purchasing entity determines that a reverse auction is not in the best interest of the state, then that determination must be approved by the Public Procurement Review Board.  The purchasing entity shall submit a detailed explanation of why a reverse auction would not be in the best interest of the state and present an alternative process to be approved by the Public Procurement Review Board.  If the Public Procurement Review Board authorizes the purchasing entity to solicit bids with a method other than reverse auction, then the purchasing entity may designate the other methods by which the bids will be received, including, but not limited to, bids sealed in an envelope, bids received electronically in a secure system, or bids received by any other method that promotes open competition and has been approved by the Office of Purchasing and Travel.  However, reverse auction shall not be used for any public contract for design, construction, improvement, repair or remodeling of any public facilities, including the purchase of materials, supplies, equipment or goods for same and including buildings, roads and bridges.  The Public Procurement Review Board must approve any contract entered into by alternative process.  The provisions of this item 2 shall not apply to the individual state institutions of higher learning.  The provisions of this item 2 requiring reverse auction as the primary method of receiving bids shall not apply to term contract purchases as provided in paragraph (n) of this section; however, a purchasing entity may, in its discretion, utilize reverse auction for such purchases.  The provisions of this item 2 shall not apply to individual public schools, including public charter schools and public school districts, only when purchasing copyrighted educational supplemental materials and software as a service product.  For such purchases, a local school board may authorize a purchasing entity in its jurisdiction to use a Request for Qualifications which promotes open competition and meets the requirements of the Office of Purchasing and Travel.

                   3.  The date as published for the bid opening shall not be less than seven (7) working days after the last published notice; however, if the purchase involves a construction project in which the estimated cost is in excess of Seventy-five Thousand Dollars ($75,000.00), such bids shall not be opened in less than fifteen (15) working days after the last notice is published and the notice for the purchase of such construction shall be published once each week for two (2) consecutive weeks.  However, all American Recovery and Reinvestment Act projects in excess of Twenty-five Thousand Dollars ($25,000.00) shall be bid.  For any projects in excess of Twenty-five Thousand Dollars ($25,000.00) under the American Recovery and Reinvestment Act, publication shall be made one (1) time and the bid opening for construction projects shall not be less than ten (10) working days after the date of the published notice.  The notice of intention to let contracts or purchase equipment shall state the time and place at which bids shall be received, list the contracts to be made or types of equipment or supplies to be purchased, and, if all plans and/or specifications are not published, refer to the plans and/or specifications on file.  If there is no newspaper published in the county or municipality, then such notice shall be given by posting same at the courthouse, or for municipalities at the city hall, and at two (2) other public places in the county or municipality, and also by publication once each week for two (2) consecutive weeks in some newspaper having a general circulation in the county or municipality in the above-provided manner.  On the same date that the notice is submitted to the newspaper for publication, the agency or governing authority involved shall mail written notice to, or provide electronic notification to the main office of the Mississippi Procurement Technical Assistance Program under the Mississippi Development Authority that contains the same information as that in the published notice.  Submissions received by the Mississippi Procurement Technical Assistance Program for projects funded by the American Recovery and Reinvestment Act shall be displayed on a separate and unique Internet web page accessible to the public and maintained by the Mississippi Development Authority for the Mississippi Procurement Technical Assistance Program.  Those American Recovery and Reinvestment Act related submissions shall be publicly posted within twenty-four (24) hours of receipt by the Mississippi Development Authority and the bid opening shall not occur until the submission has been posted for ten (10) consecutive days.  The Department of Finance and Administration shall maintain information regarding contracts and other expenditures from the American Recovery and Reinvestment Act, on a unique Internet web page accessible to the public.  The Department of Finance and Administration shall promulgate rules regarding format, content and deadlines, unless otherwise specified by law, of the posting of award notices, contract execution and subsequent amendments, links to the contract documents, expenditures against the awarded contracts and general expenditures of funds from the American Recovery and Reinvestment Act.  Within one (1) working day of the contract award, the agency or governing authority shall post to the designated web page maintained by the Department of Finance and Administration, notice of the award, including the award recipient, the contract amount, and a brief summary of the contract in accordance with rules promulgated by the department.  Within one (1) working day of the contract execution, the agency or governing authority shall post to the designated web page maintained by the Department of Finance and Administration a summary of the executed contract and make a copy of the appropriately redacted contract documents available for linking to the designated web page in accordance with the rules promulgated by the department.  The information provided by the agency or governing authority shall be posted to the web page for the duration of the American Recovery and Reinvestment Act funding or until the project is completed, whichever is longer.

               (ii)  Bidding process amendment procedure.  If all plans and/or specifications are published in the notification, then the plans and/or specifications may not be amended.  If all plans and/or specifications are not published in the notification, then amendments to the plans/specifications, bid opening date, bid opening time and place may be made, provided that the agency or governing authority maintains a list of all prospective bidders who are known to have received a copy of the bid documents and all such prospective bidders are sent copies of all amendments.  This notification of amendments may be made via mail, facsimile, electronic mail or other generally accepted method of information distribution.  No addendum to bid specifications may be issued within two (2) working days of the time established for the receipt of bids unless such addendum also amends the bid opening to a date not less than five (5) working days after the date of the addendum.

              (iii)  Filing requirement.  In all cases involving governing authorities, before the notice shall be published or posted, the plans or specifications for the construction or equipment being sought shall be filed with the clerk of the board of the governing authority.  In addition to these requirements, a bid file shall be established which shall indicate those vendors to whom such solicitations and specifications were issued, and such file shall also contain such information as is pertinent to the bid.

              (iv)  Specification restrictions.

                   1.  Specifications pertinent to such bidding shall be written so as not to exclude comparable equipment of domestic manufacture.  However, if valid justification is presented, the Department of Finance and Administration or the board of a governing authority may approve a request for specific equipment necessary to perform a specific job.  Further, such justification, when placed on the minutes of the board of a governing authority, may serve as authority for that governing authority to write specifications to require a specific item of equipment needed to perform a specific job.  In addition to these requirements, from and after July 1, 1990, vendors of relocatable classrooms and the specifications for the purchase of such relocatable classrooms published by local school boards shall meet all pertinent regulations of the State Board of Education, including prior approval of such bid by the State Department of Education.

                    2.  Specifications for construction projects may include an allowance for commodities, equipment, furniture, construction materials or systems in which prospective bidders are instructed to include in their bids specified amounts for such items so long as the allowance items are acquired by the vendor in a commercially reasonable manner and approved by the agency/governing authority.  Such acquisitions shall not be made to circumvent the public purchasing laws.

              (v)  Electronic bids.  Agencies and governing authorities shall provide a secure electronic interactive system for the submittal of bids requiring competitive bidding that shall be an additional bidding option for those bidders who choose to submit their bids electronically.  The Department of Finance and Administration shall provide, by regulation, the standards that agencies must follow when receiving electronic bids.  Agencies and governing authorities shall make the appropriate provisions necessary to accept electronic bids from those bidders who choose to submit their bids electronically for all purchases requiring competitive bidding under this section.  Any special condition or requirement for the electronic bid submission shall be specified in the advertisement for bids required by this section.  Agencies or governing authorities that are currently without available high speed Internet access shall be exempt from the requirement of this subparagraph (v) until such time that high speed Internet access becomes available.  Any county having a population of less than twenty thousand (20,000) shall be exempt from the provisions of this subparagraph (v).  Any municipality having a population of less than ten thousand (10,000) shall be exempt from the provisions of this subparagraph (v).  The provisions of this subparagraph (v) shall not require any bidder to submit bids electronically.  When construction bids are submitted electronically, the requirement for including a certificate of responsibility, or a statement that the bid enclosed does not exceed Fifty Thousand Dollars ($50,000.00), on the exterior of the bid envelope as indicated in Section 31-3-21(1) and (2) shall be deemed in compliance with by including same as an attachment with the electronic bid submittal.

          (d)  Lowest and best bid decision procedure.

              (i)  Decision procedure.  Purchases may be made from the lowest and best bidder.  In determining the lowest and best bid, freight and shipping charges shall be included.  Life-cycle costing, total cost bids, warranties, guaranteed buy-back provisions and other relevant provisions may be included in the best bid calculation.  All best bid procedures for state agencies must be in compliance with regulations established by the Department of Finance and Administration.  If any governing authority accepts a bid other than the lowest bid actually submitted, it shall place on its minutes detailed calculations and narrative summary showing that the accepted bid was determined to be the lowest and best bid, including the dollar amount of the accepted bid and the dollar amount of the lowest bid.  No agency or governing authority shall accept a bid based on items not included in the specifications.

              (ii)  Decision procedure for Certified Purchasing Offices.  In addition to the decision procedure set forth in subparagraph (i) of this paragraph (d), Certified Purchasing Offices may also use the following procedure:  Purchases may be made from the bidder offering the best value.  In determining the best value bid, freight and shipping charges shall be included.  Life-cycle costing, total cost bids, warranties, guaranteed buy-back provisions, documented previous experience, training costs and other relevant provisions, including, but not limited to, a bidder having a local office and inventory located within the jurisdiction of the governing authority, may be included in the best value calculation.  This provision shall authorize Certified Purchasing Offices to utilize a Request For Proposals (RFP) process when purchasing commodities.  All best value procedures for state agencies must be in compliance with regulations established by the Department of Finance and Administration.  No agency or governing authority shall accept a bid based on items or criteria not included in the specifications.

              (iii)  Decision procedure for Mississippi Landmarks.  In addition to the decision procedure set forth in subparagraph (i) of this paragraph (d), where purchase involves renovation, restoration, or both, of the State Capitol Building or any other historical building designated for at least five (5) years as a Mississippi Landmark by the Board of Trustees of the Department of Archives and History under the authority of Sections 39-7-7 and 39-7-11, the agency or governing authority may use the following procedure:  Purchases may be made from the lowest and best prequalified bidder.  Prequalification of bidders shall be determined not less than fifteen (15) working days before the first published notice of bid opening.  Prequalification criteria shall be limited to bidder's knowledge and experience in historical restoration, preservation and renovation.  In determining the lowest and best bid, freight and shipping charges shall be included.  Life-cycle costing, total cost bids, warranties, guaranteed buy-back provisions and other relevant provisions may be included in the best bid calculation.  All best bid and prequalification procedures for state agencies must be in compliance with regulations established by the Department of Finance and Administration.  If any governing authority accepts a bid other than the lowest bid actually submitted, it shall place on its minutes detailed calculations and narrative summary showing that the accepted bid was determined to be the lowest and best bid, including the dollar amount of the accepted bid and the dollar amount of the lowest bid.  No agency or governing authority shall accept a bid based on items not included in the specifications.

              (iv)  Construction project negotiations authority.  If the lowest and best bid is not more than ten percent (10%) above the amount of funds allocated for a public construction or renovation project, then the agency or governing authority shall be permitted to negotiate with the lowest bidder in order to enter into a contract for an amount not to exceed the funds allocated.

          (e)  Lease-purchase authorization.  For the purposes of this section, the term "equipment" shall mean equipment, furniture and, if applicable, associated software and other applicable direct costs associated with the acquisition.  Any lease-purchase of equipment which an agency is not required to lease-purchase under the master lease-purchase program pursuant to Section 31-7-10 and any lease-purchase of equipment which a governing authority elects to lease-purchase may be acquired by a lease-purchase agreement under this paragraph (e).  Lease-purchase financing may also be obtained from the vendor or from a third-party source after having solicited and obtained at least two (2) written competitive bids, as defined in paragraph (b) of this section, for such financing without advertising for such bids.  Solicitation for the bids for financing may occur before or after acceptance of bids for the purchase of such equipment or, where no such bids for purchase are required, at any time before the purchase thereof.  No such lease-purchase agreement shall be for an annual rate of interest which is greater than the overall maximum interest rate to maturity on general obligation indebtedness permitted under Section 75-17-101, and the term of such lease-purchase agreement shall not exceed the useful life of equipment covered thereby as determined according to the upper limit of the asset depreciation range (ADR) guidelines for the Class Life Asset Depreciation Range System established by the Internal Revenue Service pursuant to the United States Internal Revenue Code and regulations thereunder as in effect on December 31, 1980, or comparable depreciation guidelines with respect to any equipment not covered by ADR guidelines.  Any lease-purchase agreement entered into pursuant to this paragraph (e) may contain any of the terms and conditions which a master lease-purchase agreement may contain under the provisions of Section 31-7-10(5), and shall contain an annual allocation dependency clause substantially similar to that set forth in Section 31-7-10(8).  Each agency or governing authority entering into a lease-purchase transaction pursuant to this paragraph (e) shall maintain with respect to each such lease-purchase transaction the same information as required to be maintained by the Department of Finance and Administration pursuant to Section 31-7-10(13).  However, nothing contained in this section shall be construed to permit agencies to acquire items of equipment with a total acquisition cost in the aggregate of less than Ten Thousand Dollars ($10,000.00) by a single lease-purchase transaction.  All equipment, and the purchase thereof by any lessor, acquired by lease-purchase under this paragraph and all lease-purchase payments with respect thereto shall be exempt from all Mississippi sales, use and ad valorem taxes.  Interest paid on any lease-purchase agreement under this section shall be exempt from State of Mississippi income taxation.

          (f)  Alternate bid authorization.  When necessary to ensure ready availability of commodities for public works and the timely completion of public projects, no more than two (2) alternate bids may be accepted by a governing authority for commodities.  No purchases may be made through use of such alternate bids procedure unless the lowest and best bidder cannot deliver the commodities contained in his bid.  In that event, purchases of such commodities may be made from one (1) of the bidders whose bid was accepted as an alternate.

          (g)  Construction contract change authorization.  In the event a determination is made by an agency or governing authority after a construction contract is let that changes or modifications to the original contract are necessary or would better serve the purpose of the agency or the governing authority, such agency or governing authority may, in its discretion, order such changes pertaining to the construction that are necessary under the circumstances without the necessity of further public bids; provided that such change shall be made in a commercially reasonable manner and shall not be made to circumvent the public purchasing statutes.  In addition to any other authorized person, the architect or engineer hired by an agency or governing authority with respect to any public construction contract shall have the authority, when granted by an agency or governing authority, to authorize changes or modifications to the original contract without the necessity of prior approval of the agency or governing authority when any such change or modification is less than one percent (1%) of the total contract amount.  The agency or governing authority may limit the number, manner or frequency of such emergency changes or modifications.

          (h)  Petroleum purchase alternative.  In addition to other methods of purchasing authorized in this chapter, when any agency or governing authority shall have a need for gas, diesel fuel, oils and/or other petroleum products in excess of the amount set forth in paragraph (a) of this section, such agency or governing authority may purchase the commodity after having solicited and obtained at least two (2) competitive written bids, as defined in paragraph (b) of this section.  If two (2) competitive written bids are not obtained, the entity shall comply with the procedures set forth in paragraph (c) of this section.  In the event any agency or governing authority shall have advertised for bids for the purchase of gas, diesel fuel, oils and other petroleum products and coal and no acceptable bids can be obtained, such agency or governing authority is authorized and directed to enter into any negotiations necessary to secure the lowest and best contract available for the purchase of such commodities.

          (i)  Road construction petroleum products price adjustment clause authorization.  Any agency or governing authority authorized to enter into contracts for the construction, maintenance, surfacing or repair of highways, roads or streets, may include in its bid proposal and contract documents a price adjustment clause with relation to the cost to the contractor, including taxes, based upon an industry-wide cost index, of petroleum products including asphalt used in the performance or execution of the contract or in the production or manufacture of materials for use in such performance.  Such industry-wide index shall be established and published monthly by the Mississippi Department of Transportation with a copy thereof to be mailed, upon request, to the clerks of the governing authority of each municipality and the clerks of each board of supervisors throughout the state.  The price adjustment clause shall be based on the cost of such petroleum products only and shall not include any additional profit or overhead as part of the adjustment.  The bid proposals or document contract shall contain the basis and methods of adjusting unit prices for the change in the cost of such petroleum products.

          (j)  State agency emergency purchase procedure.  If the governing board or the executive head, or his designees, of any agency of the state shall determine that an emergency exists in regard to the purchase of any commodities or repair contracts, so that the delay incident to giving opportunity for competitive bidding would be detrimental to the interests of the state, then the head of such agency, or his designees, shall file with the Department of Finance and Administration (i) a statement explaining the conditions and circumstances of the emergency, which shall include a detailed description of the events leading up to the situation and the negative impact to the entity if the purchase is made following the statutory requirements set forth in paragraph (a), (b) or (c) of this section, and (ii) a certified copy of the appropriate minutes of the board of such agency requesting the emergency purchase, if applicable.  Upon receipt of the statement and applicable board certification, the State Fiscal Officer, or his designees, may, in writing, authorize the purchase or repair without having to comply with competitive bidding requirements.

     If the governing board or the executive head, or his designees, of any agency determines that an emergency exists in regard to the purchase of any commodities or repair contracts, so that the delay incident to giving opportunity for competitive bidding would threaten the health or safety of any person, or the preservation or protection of property, then the provisions in this section for competitive bidding shall not apply, and any officer or agent of the agency having general or specific authority for making the purchase or repair contract shall approve the bill presented for payment, and he shall certify in writing from whom the purchase was made, or with whom the repair contract was made.

     Total purchases made under this paragraph (j) shall only be for the purpose of meeting needs created by the emergency situation.  Following the emergency purchase, documentation of the purchase, including a description of the commodity purchased, the purchase price thereof and the nature of the emergency shall be filed with the Department of Finance and Administration.  Any contract awarded pursuant to this paragraph (j) shall not exceed a term of one (1) year.

     Purchases under the grant program established under Section 37-68-7 in response to COVID-19 and the directive that school districts create a distance learning plan and fulfill technology needs expeditiously shall be deemed an emergency purchase for purposes of this paragraph (j).

          (k)  Governing authority emergency purchase procedure.  If the governing authority, or the governing authority acting through its designee, shall determine that an emergency exists in regard to the purchase of any commodities or repair contracts, so that the delay incident to giving opportunity for competitive bidding would be detrimental to the interest of the governing authority, then the provisions herein for competitive bidding shall not apply and any officer or agent of such governing authority having general or special authority therefor in making such purchase or repair shall approve the bill presented therefor, and he shall certify in writing thereon from whom such purchase was made, or with whom such a repair contract was made.  At the board meeting next following the emergency purchase or repair contract, documentation of the purchase or repair contract, including a description of the commodity purchased, the price thereof and the nature of the emergency shall be presented to the board and shall be placed on the minutes of the board of such governing authority.  Purchases under the grant program established under Section 37-68-7 in response to COVID-19 and the directive that school districts create a distance learning plan and fulfill technology needs expeditiously shall be deemed an emergency purchase for purposes of this paragraph (k).

          (l)  Hospital purchase, lease-purchase and lease authorization.

              (i)  The commissioners or board of trustees of any public hospital may contract with such lowest and best bidder for the purchase or lease-purchase of any commodity under a contract of purchase or lease-purchase agreement whose obligatory payment terms do not exceed five (5) years.

              (ii)  In addition to the authority granted in subparagraph (i) of this paragraph (l), the commissioners or board of trustees is authorized to enter into contracts for the lease of equipment or services, or both, which it considers necessary for the proper care of patients if, in its opinion, it is not financially feasible to purchase the necessary equipment or services.  Any such contract for the lease of equipment or services executed by the commissioners or board shall not exceed a maximum of five (5) years' duration and shall include a cancellation clause based on unavailability of funds.  If such cancellation clause is exercised, there shall be no further liability on the part of the lessee.  Any such contract for the lease of equipment or services executed on behalf of the commissioners or board that complies with the provisions of this subparagraph (ii) shall be excepted from the bid requirements set forth in this section.

          (m)  Exceptions from bidding requirements.  Excepted from bid requirements are:

               (i)  Purchasing agreements approved by department.  Purchasing agreements, contracts and maximum price regulations executed or approved by the Department of Finance and Administration.

              (ii)  Outside equipment repairs.  Repairs to equipment, when such repairs are made by repair facilities in the private sector; however, engines, transmissions, rear axles and/or other such components shall not be included in this exemption when replaced as a complete unit instead of being repaired and the need for such total component replacement is known before disassembly of the component; however, invoices identifying the equipment, specific repairs made, parts identified by number and name, supplies used in such repairs, and the number of hours of labor and costs therefor shall be required for the payment for such repairs.

              (iii)  In-house equipment repairs.  Purchases of parts for repairs to equipment, when such repairs are made by personnel of the agency or governing authority; however, entire assemblies, such as engines or transmissions, shall not be included in this exemption when the entire assembly is being replaced instead of being repaired.

              (iv)  Raw gravel or dirt.  Raw unprocessed deposits of gravel or fill dirt which are to be removed and transported by the purchaser.

              (v)  Governmental equipment auctions.  Motor vehicles or other equipment purchased from a federal agency or authority, another governing authority or state agency of the State of Mississippi, or any governing authority or state agency of another state at a public auction held for the purpose of disposing of such vehicles or other equipment.  Any purchase by a governing authority under the exemption authorized by this subparagraph (v) shall require advance authorization spread upon the minutes of the governing authority to include the listing of the item or items authorized to be purchased and the maximum bid authorized to be paid for each item or items.

              (vi)  Intergovernmental sales and transfers.  Purchases, sales, transfers or trades by governing authorities or state agencies when such purchases, sales, transfers or trades are made by a private treaty agreement or through means of negotiation, from any federal agency or authority, another governing authority or state agency of the State of Mississippi, or any state agency or governing authority of another state.  Nothing in this section shall permit such purchases through public auction except as provided for in subparagraph (v) of this paragraph (m).  It is the intent of this section to allow governmental entities to dispose of and/or purchase commodities from other governmental entities at a price that is agreed to by both parties.  This shall allow for purchases and/or sales at prices which may be determined to be below the market value if the selling entity determines that the sale at below market value is in the best interest of the taxpayers of the state.  Governing authorities shall place the terms of the agreement and any justification on the minutes, and state agencies shall obtain approval from the Department of Finance and Administration, prior to releasing or taking possession of the commodities.

              (vii)  Perishable supplies or food.  Perishable supplies or food purchased for use in connection with hospitals, the school lunch programs, homemaking programs and for the feeding of county or municipal prisoners.

               (viii)  Single-source items.  Noncompetitive items available from one (1) source only.  In connection with the purchase of noncompetitive items only available from one (1) source, a certification of the conditions and circumstances requiring the purchase shall be filed by the agency with the Department of Finance and Administration and by the governing authority with the board of the governing authority.  Upon receipt of that certification the Department of Finance and Administration or the board of the governing authority, as the case may be, may, in writing, authorize the purchase, which authority shall be noted on the minutes of the body at the next regular meeting thereafter.  In those situations, a governing authority is not required to obtain the approval of the Department of Finance and Administration.  Following the purchase, the executive head of the state agency, or his designees, shall file with the Department of Finance and Administration, documentation of the purchase, including a description of the commodity purchased, the purchase price thereof and the source from whom it was purchased.

              (ix)  Waste disposal facility construction contracts.  Construction of incinerators and other facilities for disposal of solid wastes in which products either generated therein, such as steam, or recovered therefrom, such as materials for recycling, are to be sold or otherwise disposed of; however, in constructing such facilities, a governing authority or agency shall publicly issue requests for proposals, advertised for in the same manner as provided herein for seeking bids for public construction projects, concerning the design, construction, ownership, operation and/or maintenance of such facilities, wherein such requests for proposals when issued shall contain terms and conditions relating to price, financial responsibility, technology, environmental compatibility, legal responsibilities and such other matters as are determined by the governing authority or agency to be appropriate for inclusion; and after responses to the request for proposals have been duly received, the governing authority or agency may select the most qualified proposal or proposals on the basis of price, technology and other relevant factors and from such proposals, but not limited to the terms thereof, negotiate and enter contracts with one or more of the persons or firms submitting proposals.

               (x)  Hospital group purchase contracts.  Supplies, commodities and equipment purchased by hospitals through group purchase programs pursuant to Section 31-7-38.

              (xi)  Information technology products.  Purchases of information technology products made by governing authorities under the provisions of purchase schedules, or contracts executed or approved by the Mississippi Department of Information Technology Services and designated for use by governing authorities.

               (xii)  Energy efficiency services and equipment.  Energy efficiency services and equipment acquired by school districts, community and junior colleges, institutions of higher learning and state agencies or other applicable governmental entities on a shared-savings, lease or lease-purchase basis pursuant to Section 31-7-14.

              (xiii)  Municipal electrical utility system fuel.  Purchases of coal and/or natural gas by municipally owned electric power generating systems that have the capacity to use both coal and natural gas for the generation of electric power.

              (xiv)  Library books and other reference materials.  Purchases by libraries or for libraries of books and periodicals; processed film, videocassette tapes, filmstrips and slides; recorded audiotapes, cassettes and diskettes; and any such items as would be used for teaching, research or other information distribution; however, equipment such as projectors, recorders, audio or video equipment, and monitor televisions are not exempt under this subparagraph.

               (xv)  Unmarked vehicles.  Purchases of unmarked vehicles when such purchases are made in accordance with purchasing regulations adopted by the Department of Finance and Administration pursuant to Section 31-7-9(2).

              (xvi)  Election ballots.  Purchases of ballots printed pursuant to Section 23-15-351.

              (xvii)  Multichannel interactive video systems.  From and after July 1, 1990, contracts by Mississippi Authority for Educational Television with any private educational institution or private nonprofit organization whose purposes are educational in regard to the construction, purchase, lease or lease-purchase of facilities and equipment and the employment of personnel for providing multichannel interactive video systems (ITSF) in the school districts of this state.

              (xviii)  Purchases of prison industry products by the Department of Corrections, regional correctional facilities or privately owned prisons.  Purchases made by the Mississippi Department of Corrections, regional correctional facilities or privately owned prisons involving any item that is manufactured, processed, grown or produced from the state's prison industries.

              (xix)  Undercover operations equipment.  Purchases of surveillance equipment or any other high-tech equipment to be used by law enforcement agents in undercover operations, provided that any such purchase shall be in compliance with regulations established by the Department of Finance and Administration.

               (xx)  Junior college books for rent.  Purchases by community or junior colleges of textbooks which are obtained for the purpose of renting such books to students as part of a book service system.

              (xxi)  Certain school district purchases.  Purchases of commodities made by school districts from vendors with which any levying authority of the school district, as defined in Section 37-57-1, has contracted through competitive bidding procedures for purchases of the same commodities.

              (xxii)  Garbage, solid waste and sewage contracts.  Contracts for garbage collection or disposal, contracts for solid waste collection or disposal and contracts for sewage collection or disposal.

              (xxiii)  Municipal water tank maintenance contracts.  Professional maintenance program contracts for the repair or maintenance of municipal water tanks, which provide professional services needed to maintain municipal water storage tanks for a fixed annual fee for a duration of two (2) or more years.

              (xxiv)  Purchases of Mississippi Industries for the Blind products or services.  Purchases made by state agencies or governing authorities involving any item that is manufactured, processed or produced by, or any services provided by, the Mississippi Industries for the Blind.

              (xxv)  Purchases of state-adopted textbooks.  Purchases of state-adopted textbooks by public school districts.

              (xxvi)  Certain purchases under the Mississippi Major Economic Impact Act.  Contracts entered into pursuant to the provisions of Section 57-75-9(2), (3) and (4).

              (xxvii)  Used heavy or specialized machinery or equipment for installation of soil and water conservation practices purchased at auction.  Used heavy or specialized machinery or equipment used for the installation and implementation of soil and water conservation practices or measures purchased subject to the restrictions provided in Sections 69-27-331 through 69-27-341.  Any purchase by the State Soil and Water Conservation Commission under the exemption authorized by this subparagraph shall require advance authorization spread upon the minutes of the commission to include the listing of the item or items authorized to be purchased and the maximum bid authorized to be paid for each item or items.

              (xxviii)  Hospital lease of equipment or services.  Leases by hospitals of equipment or services if the leases are in compliance with paragraph (l)(ii).

              (xxix)  Purchases made pursuant to qualified cooperative purchasing agreements.  Purchases made by certified purchasing offices of state agencies or governing authorities under cooperative purchasing agreements previously approved by the Office of Purchasing and Travel and established by or for any municipality, county, parish or state government or the federal government, provided that the notification to potential contractors includes a clause that sets forth the availability of the cooperative purchasing agreement to other governmental entities.  Such purchases shall only be made if the use of the cooperative purchasing agreements is determined to be in the best interest of the governmental entity.

              (xxx)  School yearbooks.  Purchases of school yearbooks by state agencies or governing authorities; however, state agencies and governing authorities shall use for these purchases the RFP process as set forth in the Mississippi Procurement Manual adopted by the Office of Purchasing and Travel.

              (xxxi)  Design-build method of contracting and certain other contracts.  Contracts entered into under the provisions of Section 31-7-13.1, 37-101-44 or 65-1-85.

              (xxxii)  Toll roads and bridge construction projects.  Contracts entered into under the provisions of Section 65-43-1 or 65-43-3.

               (xxxiii)  Certain purchases under Section 57-1-221.  Contracts entered into pursuant to the provisions of Section 57-1-221.

              (xxxiv)  Certain transfers made pursuant to the provisions of Section 57-105-1(7).  Transfers of public property or facilities under Section 57-105-1(7) and construction related to such public property or facilities.

              (xxxv)  Certain purchases or transfers entered into with local electrical power associations.  Contracts or agreements entered into under the provisions of Section 55-3-33.

              (xxxvi)  Certain purchases by an academic medical center or health sciences school.  Purchases by an academic medical center or health sciences school, as defined in Section 37-115-50, of commodities that are used for clinical purposes and 1. intended for use in the diagnosis of disease or other conditions or in the cure, mitigation, treatment or prevention of disease, and 2. medical devices, biological, drugs and radiation-emitting devices as defined by the United States Food and Drug Administration.

              (xxxvii)  Certain purchases made under the Alyce G. Clarke Mississippi Lottery Law.  Contracts made by the Mississippi Lottery Corporation pursuant to the Alyce G. Clarke Mississippi Lottery Law.

              (xxxviii)  Certain purchases made by the Department of Health and the Department of Revenue.  Purchases made by the Department of Health and the Department of Revenue * * * solely for the purpose of fulfilling their respective responsibilities under the Mississippi Medical Cannabis Act, and any provision in Sections 1 through 23 of this act that are applicable to the departments individually or jointly.  This subparagraph shall stand repealed on June 30, 2026.

          (n)  Term contract authorization.  All contracts for the purchase of:

               (i)  All contracts for the purchase of commodities, equipment and public construction (including, but not limited to, repair and maintenance), may be let for periods of not more than sixty (60) months in advance, subject to applicable statutory provisions prohibiting the letting of contracts during specified periods near the end of terms of office.  Term contracts for a period exceeding twenty-four (24) months shall also be subject to ratification or cancellation by governing authority boards taking office subsequent to the governing authority board entering the contract.

              (ii)  Bid proposals and contracts may include price adjustment clauses with relation to the cost to the contractor based upon a nationally published industry-wide or nationally published and recognized cost index.  The cost index used in a price adjustment clause shall be determined by the Department of Finance and Administration for the state agencies and by the governing board for governing authorities.  The bid proposal and contract documents utilizing a price adjustment clause shall contain the basis and method of adjusting unit prices for the change in the cost of such commodities, equipment and public construction.

          (o)  Purchase law violation prohibition and vendor penalty.  No contract or purchase as herein authorized shall be made for the purpose of circumventing the provisions of this section requiring competitive bids, nor shall it be lawful for any person or concern to submit individual invoices for amounts within those authorized for a contract or purchase where the actual value of the contract or commodity purchased exceeds the authorized amount and the invoices therefor are split so as to appear to be authorized as purchases for which competitive bids are not required.  Submission of such invoices shall constitute a misdemeanor punishable by a fine of not less than Five Hundred Dollars ($500.00) nor more than One Thousand Dollars ($1,000.00), or by imprisonment for thirty (30) days in the county jail, or both such fine and imprisonment.  In addition, the claim or claims submitted shall be forfeited.

          (p)  Electrical utility petroleum-based equipment purchase procedure.  When in response to a proper advertisement therefor, no bid firm as to price is submitted to an electric utility for power transformers, distribution transformers, power breakers, reclosers or other articles containing a petroleum product, the electric utility may accept the lowest and best bid therefor although the price is not firm.

          (q)  Fuel management system bidding procedure.  Any governing authority or agency of the state shall, before contracting for the services and products of a fuel management or fuel access system, enter into negotiations with not fewer than two (2) sellers of fuel management or fuel access systems for competitive written bids to provide the services and products for the systems.  In the event that the governing authority or agency cannot locate two (2) sellers of such systems or cannot obtain bids from two (2) sellers of such systems, it shall show proof that it made a diligent, good-faith effort to locate and negotiate with two (2) sellers of such systems.  Such proof shall include, but not be limited to, publications of a request for proposals and letters soliciting negotiations and bids.  For purposes of this paragraph (q), a fuel management or fuel access system is an automated system of acquiring fuel for vehicles as well as management reports detailing fuel use by vehicles and drivers, and the term "competitive written bid" shall have the meaning as defined in paragraph (b) of this section.  Governing authorities and agencies shall be exempt from this process when contracting for the services and products of fuel management or fuel access systems under the terms of a state contract established by the Office of Purchasing and Travel.

          (r)  Solid waste contract proposal procedure.  Before entering into any contract for garbage collection or disposal, contract for solid waste collection or disposal or contract for sewage collection or disposal, which involves an expenditure of more than Seventy-five Thousand Dollars ($75,000.00), a governing authority or agency shall issue publicly a request for proposals concerning the specifications for such services which shall be advertised for in the same manner as provided in this section for seeking bids for purchases which involve an expenditure of more than the amount provided in paragraph (c) of this section.  Any request for proposals when issued shall contain terms and conditions relating to price, financial responsibility, technology, legal responsibilities and other relevant factors as are determined by the governing authority or agency to be appropriate for inclusion; all factors determined relevant by the governing authority or agency or required by this paragraph (r) shall be duly included in the advertisement to elicit proposals.  After responses to the request for proposals have been duly received, the governing authority or agency shall select the most qualified proposal or proposals on the basis of price, technology and other relevant factors and from such proposals, but not limited to the terms thereof, negotiate and enter into contracts with one or more of the persons or firms submitting proposals.  If the governing authority or agency deems none of the proposals to be qualified or otherwise acceptable, the request for proposals process may be reinitiated.  Notwithstanding any other provisions of this paragraph, where a county with at least thirty-five thousand (35,000) nor more than forty thousand (40,000) population, according to the 1990 federal decennial census, owns or operates a solid waste landfill, the governing authorities of any other county or municipality may contract with the governing authorities of the county owning or operating the landfill, pursuant to a resolution duly adopted and spread upon the minutes of each governing authority involved, for garbage or solid waste collection or disposal services through contract negotiations.

          (s)  Minority set-aside authorization.  Notwithstanding any provision of this section to the contrary, any agency or governing authority, by order placed on its minutes, may, in its discretion, set aside not more than twenty percent (20%) of its anticipated annual expenditures for the purchase of commodities from minority businesses; however, all such set-aside purchases shall comply with all purchasing regulations promulgated by the Department of Finance and Administration and shall be subject to bid requirements under this section.  Set-aside purchases for which competitive bids are required shall be made from the lowest and best minority business bidder.  For the purposes of this paragraph, the term "minority business" means a business which is owned by a majority of persons who are United States citizens or permanent resident aliens (as defined by the Immigration and Naturalization Service) of the United States, and who are Asian, Black, Hispanic or Native American, according to the following definitions:

              (i)  "Asian" means persons having origins in any of the original people of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands.

              (ii)  "Black" means persons having origins in any black racial group of Africa.

               (iii)  "Hispanic" means persons of Spanish or Portuguese culture with origins in Mexico, South or Central America, or the Caribbean Islands, regardless of race.

              (iv)  "Native American" means persons having origins in any of the original people of North America, including American Indians, Eskimos and Aleuts.

          (t)  Construction punch list restriction.  The architect, engineer or other representative designated by the agency or governing authority that is contracting for public construction or renovation may prepare and submit to the contractor only one (1) preliminary punch list of items that do not meet the contract requirements at the time of substantial completion and one (1) final list immediately before final completion and final payment.

          (u)  Procurement of construction services by state institutions of higher learning.  Contracts for privately financed construction of auxiliary facilities on the campus of a state institution of higher learning may be awarded by the Board of Trustees of State Institutions of Higher Learning to the lowest and best bidder, where sealed bids are solicited, or to the offeror whose proposal is determined to represent the best value to the citizens of the State of Mississippi, where requests for proposals are solicited.

          (v)  Insurability of bidders for public construction or other public contracts.  In any solicitation for bids to perform public construction or other public contracts to which this section applies, including, but not limited to, contracts for repair and maintenance, for which the contract will require insurance coverage in an amount of not less than One Million Dollars ($1,000,000.00), bidders shall be permitted to either submit proof of current insurance coverage in the specified amount or demonstrate ability to obtain the required coverage amount of insurance if the contract is awarded to the bidder.  Proof of insurance coverage shall be submitted within five (5) business days from bid acceptance.

          (w)  Purchase authorization clarification.  Nothing in this section shall be construed as authorizing any purchase not authorized by law.

          (x)  Mississippi Regional Pre-Need Disaster Clean Up Act.  (i)  The Department of Finance and Administration shall enter into nine (9) contracts for the pre-need purchase of labor, services, work, materials, equipment, supplies or other personal property for disaster-related solid waste collection, disposal or monitoring.  One (1) contract shall be entered into for each of the nine (9) Mississippi Emergency Management Association districts:

                    1.  Coahoma, DeSoto, Grenada, Panola, Quitman, Tallahatchie, Tate, Tunica and Yalobusha Counties;

                    2.  Alcorn, Benton, Itawamba, Lafayette, Lee, Marshall, Pontotoc, Prentiss, Tippah, Tishomingo and Union Counties;

                    3.  Attala, Bolivar, Carroll, Holmes, Humphreys, Leflore, Montgomery, Sunflower and Washington Counties;

                    4.  Calhoun, Chickasaw, Choctaw, Clay, Lowndes, Monroe, Noxubee, Oktibbeha, Webster and Winston Counties;

                    5.  Claiborne, Copiah, Hinds, Issaquena, Madison, Rankin, Sharkey, Simpson, Warren and Yazoo Counties;

                    6.  Clarke, Jasper, Kemper, Lauderdale, Leake, Neshoba, Newton, Scott, and Smith Counties and the Mississippi Band of Choctaw Indians;

                    7.  Adams, Amite, Franklin, Jefferson, Lawrence, Lincoln, Pike, Walthall and Wilkinson Counties;

                    8.  Covington, Forrest, Greene, Jefferson Davis, Jones, Lamar, Marion, Perry and Wayne Counties; and

                    9.  George, Hancock, Harrison, Jackson, Pearl River and Stone Counties.

     Any such contract shall set forth the manner of awarding such a contract, the method of payment, and any other matter deemed necessary to carry out the purposes of the agreement.  Such contract may be entered into only for a term of one (1) year, with an option for an additional one-year extension after the conclusion of the first year of the contract, and only after having solicited bids or proposals, as appropriate, which shall be publicly advertised by posting on a web page maintained by the Department of Finance and Administration through submission of such advertisement to the Mississippi Procurement Technical Assistance Program under the Mississippi Development Authority.  The bid opening shall not occur until after the submission has been posted for at least ten (10) consecutive days.  The state's share of expenditures for solid waste collection, disposal or monitoring under any contract shall be appropriated and paid in the manner set forth in the contract and in the same manner as for other solid waste collection, disposal, or monitoring expenses of the state.  Any contract entered into under this paragraph shall not be subject to the provisions of Section 17-13-11.

               (ii)  Any board of supervisors of any county or any governing authority of any municipality may opt in to the benefits and services provided under the appropriate and relevant contract established in subparagraph (i) of this paragraph at the time of a disaster event in that county or municipality.  At the time of opt in, the county or municipality shall assume responsibility for payment in full to the contractor for the disaster-related solid waste collection, disposal or monitoring services provided.  Nothing in this subparagraph (ii) shall be construed as requiring a county or municipality to opt in to any such contract established in subparagraph (i) of this paragraph.

     SECTION 31.  (1)  It shall be unlawful for any person to have or possess, with the intent to sell, intoxicating hemp intended for use in violating the provisions of this chapter, or regulations prescribed under this chapter.  No property rights shall exist in any such products.  All such property shall be considered contraband and shall be seized and forfeited to the state of Mississippi.

     (2)  An individual or entity that is not authorized to sell intoxicating hemp products in accordance with the provisions of this act that advertises the sale of intoxicating hemp products or offers to consumers products that are packaged and labeled as intoxicating hemp products shall be presumed to be violating the provisions of this act and such products shall be subject to seizure and forfeiture.

     (3)  The following are subject to forfeiture:

          (a)  All intoxicating hemp products, as defined in 69-25-203, which have been distributed, dispensed or acquired in violation of this chapter;

          (b)  All property which is used, or intended for use, as a container for property described in items (a) of this subsection;

          (c)  All money, deadly weapons, books, records and research products and materials, including formulas, microfilm, tapes and data which are used, or intended for use, in violation of this chapter.

     (4)  Property subject to forfeiture may be seized by the Department of Health, Department of Revenue, and Department of Agriculture and its agents, and duly sworn law enforcement officers acting within their jurisdiction upon process issued by any appropriate court having jurisdiction over the property.  Seizure without process may be made if:

          (a)  The seizure is incident to an arrest or a search under a search warrant or an investigation under Section 41-137-45;

          (b)  The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding based upon this chapter; or

          (c)  The Department of Health, Department of Revenue, and Department of Agriculture and Commerce, as applicable, and other law enforcement personnel described in this subsection have probable cause to believe that the property was used or is intended to be used in violation of this chapter.

     (5)  Intoxicating hemp products, seized or detained under the authority of this chapter, are deemed to be in the custody of the agent or agency so seizing the property and subject only to the orders and decrees of the court having jurisdiction over the property.  When such property is seized, it may be retained as evidence until final disposition of the cause in which such property is involved.

     (6)  Any intoxicating hemp seized under the authority of this chapter, shall be destroyed, adulterated and disposed of or otherwise rendered harmless and disposed of, upon written authorization of the Commissioner of Agriculture, Commissioner of the Mississippi Department of Revenue, or the State Health Officer of the Mississippi Department of Health, as applicable, after such intoxicating hemp product has served its usefulness as evidence or after such product is no longer useful for training or demonstration purposes.  No intoxicating hemp product shall be disposed of, destroyed or rendered harmless under the authority of this section without an order from the director, Commissioner of the Mississippi Department of Revenue or the State Health Officer of the Mississippi Department of Health, as applicable, and without at least two (2) officers or agents of the bureau present as witnesses.

     (7)  A record of the disposition of such intoxicating hemp products and the method of destruction or adulteration employed along with the names of witnesses to such destruction or adulteration shall be retained by the applicable department.

     (8)  Any person under the age of twenty-one (21) years who purchases, receives, or has in his or her possession in any public place, any intoxicating hemp product(s), shall be guilty of a misdemeanor and shall be punished by a fine of not less than Two Hundred Dollars ($200.00) nor more than Five Hundred Dollars ($500.00).  If a person under the age of twenty-one (21) years is convicted or enters a plea of guilty of purchasing, receiving or having in his or her possession in any public place any intoxicating hemp product(s)in violation of this subsection, the trial judge, in lieu of the penalties otherwise provided under this subsection, shall suspend the minor's driver's license by taking and keeping it in the custody of the court for a period of time not to exceed ninety (90) days.  The judge so ordering the suspension shall enter upon his docket "DEFENDANT'S DRIVER'S LICENSE SUSPENDED FOR ___ DAYS IN LIEU OF CONVICTION" and such action by the trial judge shall not constitute a conviction.  During the period that the minor's driver's license is suspended, the trial judge shall suspend the imposition of any fines or penalties that may be imposed under this subsection and may place the minor on probation subject to such conditions as the judge deems appropriate.  If the minor violates any of the conditions of probation, then the trial judge shall return the driver's license to the minor and impose the fines, penalties or both, that he would have otherwise imposed, and such action shall constitute a conviction.

     SECTION 32.  This act shall take effect and be in force from and after July 1, 2024, and shall stand repealed on June 30, 2024.


     Further, amend by striking the title in its entirety and inserting in lieu thereof the following:

 


                AN ACT TO AMEND SECTION 69-25-201, MISSISSIPPI CODE OF 1972, TO RENAME THE "MISSISSIPPI HEMP CULTIVATION ACT" AS THE "MISSISSIPPI INTOXICATING HEMP REGULATION ACT"; TO AMEND SECTION 69-25-203, MISSISSIPPI CODE OF 1972, TO DEFINE THE TERMS "INTOXICATING HEMP PRODUCT" AND "TOTAL THC"; TO AMEND SECTION 69-25-207, MISSISSIPPI CODE OF 1972, TO REQUIRE ALL LICENSE HOLDERS TO ADHERE TO GOOD MANUFACTURING PRACTICES TO AMEND SECTION 69-25-213, MISSISSIPPI CODE OF 1972, TO REDUCE FROM A CONCENTRATION OF MORE THAN 0.5% TO A CONCENTRATION OF MORE THAN 0.3%, THE VIOLATION OF PRODUCING CANNABIS SATIVA L. WITH A CERTAIN DELTA-9-TETRAHYDROCANNABINOL CONCENTRATION ON A DRY WEIGHT BASIS; TO AMEND SECTION 69-25-217, MISSISSIPPI CODE OF 1972, TO PROHIBIT THE PROCESSING OR GROWING OF ANY INTOXICATING HEMP PRODUCTS FOR SALE WITHIN THE STATE OF MISSISSIPPI, WITH CERTAIN EXCEPTIONS; TO PROHIBIT THE SALE OF ANY INTOXICATING HEMP PRODUCTS WITHIN THE STATE OF MISSISSIPPI, WITH CERTAIN EXCEPTIONS; TO PROHIBIT THE PROCESSING, GROWING, OR SALE OF ANY HEMP PRODUCTS THAT CONTAIN AN ARTIFICIALLY DERIVED CANNABINOID; TO PROHIBIT THE SALE OF ANY HEMP PRODUCT TO ANY PERSON UNDER THE AGE OF 21 YEARS; TO REGULATE THE PROCESSING, GROWING, DISTRIBUTION, AND SALE OF AN INTOXICATING HEMP PRODUCT THAT CONTAINS MORE THAN FIVE MILLIGRAMS OF TOTAL THC PER CONTAINER; TO PROVIDE THAT INTOXICATING HEMP PRODUCTS MAY ONLY BE SOLD TO CONSUMERS IN MISSISSIPPI BY PERSONS OR BUSINESS ENTITIES LICENSED UNDER THE MISSISSIPPI MEDICAL CANNABIS ACT; TO REQUIRE THAT A FINALIZED SAMPLE OF FINISHED NONINTOXICATING HEMP PRODUCTS HAVE A CERTIFICATE OF ANALYSIS; TO REQUIRE THAT LABELS FOR INTOXICATING HEMP PRODUCTS BE APPROVED BY THE DEPARTMENT OF AGRICULTURE; TO REQUIRE LICENSED HEMP GROWERS AND PROCESSORS TO PROVIDE A QUARTERLY REPORT; TO REQUIRE ALL HEMP PRODUCTS BE TESTED IN A TESTING FACILITY THAT MEETS CERTAIN REQUIREMENTS; TO REQUIRE ANY MEDICAL CANNABIS PROCESSING FACILITY THAT INTENDS TO PROCESS INTOXICATING HEMP PRODUCTS REGISTER WITH THE DEPARTMENT OF HEALTH; TO REQUIRE SUCH ENTITY PAY A NONREFUNDABLE ANNUAL REGISTRATION FEE OF $5,000.00; TO REQUIRE ANY MEDICAL CANNABIS DISPENSARY THAT INTENDS TO ACQUIRE OR SELL INTOXICATING HEMP PRODUCTS TO REGISTER WITH THE DEPARTMENT OF REVENUE; TO REQUIRE SUCH ENTITY PAY A NONREFUNDABLE ANNUAL REGISTRATION FEE OF $5,000.00; TO IMPOSE A 5% EXCISE TAX ON INTOXICATING HEMP PRODUCTS; TO AMEND SECTIONS 69-25-211, 69-25-215, 69-25-219, 69-25-221 AND 69-25-223, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING PROVISIONS; TO AMEND SECTION 41-137-3, MISSISSIPPI CODE OF 1972, TO DEFINE THE TERMS "HEMP-DERIVED INGREDIENT," "INTOXICATING HEMP PRODUCT" AND "ANCILLARY PRODUCT"; TO REVISE VARIOUS DEFINITIONS RELATED TO THE MEDICAL CANNABIS ACT, INCLUDING "TOTAL THC" AND "UNIT"; TO AMEND SECTION 41-137-9, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE PURCHASE OR ACQUISITION OF HEMP-DERIVED INGREDIENTS AND INTOXICATING HEMP PRODUCTS BY A CANNABIS CULTIVATION, PROCESSING, DISPENSING, OR RESEARCH FACILITY FOR THE MEDICAL USE OF CANNABIS; TO AMEND SECTION 41-137-11, MISSISSIPPI CODE OF 1972, TO INCLUDE INCORPORATING HEMP-DERIVED INGREDIENTS PURCHASED BY MEDICAL CANNABIS ESTABLISHMENTS IN THE CAPABILITIES OF THE SEED-TO-SALE TRACKING SYSTEM; TO AMEND SECTION 41-137-35, MISSISSIPPI CODE OF 1972, TO CONFORM WITH THE PROVISIONS OF THE ACT; TO AMEND SECTION 41-137-39, MISSISSIPPI CODE OF 1972, AS AMENDED BY SENATE BILL NO. 2857, 2024 REGULAR SESSION, TO PROVIDE THAT ENTITIES NOT LICENSED UNDER THE MISSISSIPPI MEDICAL CANNABIS ACT ARE PROHIBITED FROM SELLING INTOXICATING HEMP PRODUCTS TO CONSUMERS; TO AUTHORIZE ENTITIES TO PURCHASE HEMP PRODUCTS FROM OUTSIDE OF THE STATE IF THE PRODUCTS WERE TESTED ACCORDING TO CERTAIN STATE AND FEDERAL STANDARDS; TO REQUIRE A MEDICAL CANNABIS PROCESSOR TO UPLOAD EACH INTOXICATING HEMP PRODUCT INTO THE SEED-TO-SALE TRACKING SYSTEM; TO PROVIDE THAT MEDICAL CANNABIS AND INTOXICATING HEMP PRODUCTS SHALL BE IN SEPARATE AND DISTINGUISHABLE AREAS IN DISPENSARIES; TO PROHIBIT ANY FINISHED HEMP PRODUCT INTENDED FOR HUMAN OR ANIMAL CONSUMPTION THAT CONTAINS GREATER THAN TEN MILLIGRAMS OF TOTAL THC PER SERVING AND 100 MILLIGRAMS PER CONTAINER FROM BEING SOLD OR TRANSFERRED TO CONSUMERS IN MISSISSIPPI; TO AMEND SECTION 41-137-45, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IT IS UNLAWFUL FOR ANY PERSON OR ENTITY NOT LICENSED AS A DISPENSARY UNDER THE MEDICAL CANNABIS ACT TO SELL OR TRANSFER INTOXICATING HEMP PRODUCTS TO CONSUMERS IN THE STATE OF MISSISSIPPI, WITH CERTAIN EXCEPTIONS; TO PROVIDE PENALTIES FOR A PERSON OR BUSINESS ENTITY THAT UNLAWFULLY SELLS INTOXICATING HEMP PRODUCTS; TO PROVIDE CERTAIN ENFORCEMENT AUTHORITY TO THE DEPARTMENT OF HEALTH, DEPARTMENT OF REVENUE, AND DEPARTMENT OF AGRICULTURE AND COMMERCE, AS APPLICABLE, TO ADMINISTER THE PROVISIONS OF THIS ACT; TO AUTHORIZE LICENSING AGENCIES TO ASSESS A MONETARY PENALTY OR RECOUPMENT OF COSTS FOR THOSE REASONABLE COSTS THAT ARE EXPENDED BY THE AGENCY IN THE INVESTIGATION AND CONDUCT OF A PROCEEDING FOR A COMPLIANCE ISSUE OR VIOLATION OF THE ACT; TO PROHIBIT A DISPENSARY FROM SELLING ANY INTOXICATING HEMP PRODUCT TO A CONSUMER ONLINE, OR VIA ELECTRONIC OR DIGITAL APPLICATION; TO AMEND SECTION 41-137-13, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THIS CHAPTER DOES NOT PREVENT THE IMPOSITION OF ANY CIVIL, CRIMINAL OR OTHER PENALTIES FROM THE SMOKING OF HEMP PRODUCTS IN PUBLIC PLACES; TO AMEND SECTION 25-9-107, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT PERSONNEL EMPLOYED BY THE MISSISSIPPI DEPARTMENT OF HEALTH AND/OR THE DEPARTMENT OF REVENUE WHOSE EMPLOYMENT IS IN CONNECTION WITH EITHER DEPARTMENT'S RESPONSIBILITIES IN IMPLEMENTING, ADMINISTERING AND ENFORCING PROVISIONS OF THE MISSISSIPPI MEDICAL CANNABIS ACT OR PROVISIONS OF THIS ACT SHALL BE EXEMPT FROM BEING CONSIDERED AS STATE SERVICE EMPLOYEES FOR PURPOSES OF THE STATE PERSONNEL BOARD; TO AMEND SECTION 25-43-1.103, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FOR THE PURPOSES OF IMPLEMENTING, ADMINISTERING AND/OR ENFORCING THE PROVISIONS OF THE RULES AND REGULATIONS PROMULGATED PURSUANT TO THE MISSISSIPPI MEDICAL CANNABIS ACT AND THE PROVISIONS OF THIS ACT, THE MISSISSIPPI STATE DEPARTMENT OF HEALTH AND THE MISSISSIPPI DEPARTMENT OF REVENUE SHALL BE EXEMPTED FROM THE ADMINISTRATIVE PROCEDURE ACT UNTIL 2026; TO AMEND SECTION 25-53-1, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THROUGH JUNE 30, 2026, THE PROVISIONS OF THE MISSISSIPPI DEPARTMENT OF INFORMATION TECHNOLOGY SERVICES BID AND CONTRACT REQUIREMENTS SHALL NOT APPLY TO THE DEPARTMENT OF HEALTH AND THE DEPARTMENT OF REVENUE FOR THE PURPOSES OF IMPLEMENTING, ADMINISTERING AND ENFORCING THE PROVISIONS OF THE MISSISSIPPI MEDICAL CANNABIS ACT AND THE PROVISIONS OF THIS ACT; TO AMEND SECTION 25-53-5, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THE ACT; TO AMEND SECTION 27-104-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY PERSONAL OR PROFESSIONAL SERVICE CONTRACT ENTERED INTO BY THE MISSISSIPPI DEPARTMENT OF HEALTH AND/OR THE DEPARTMENT OF REVENUE IN CONNECTION WITH THEIR RESPECTIVE RESPONSIBILITIES UNDER THE MISSISSIPPI MEDICAL CANNABIS ACT OR THE PROVISIONS OF THIS ACT UNTIL JUNE 30, 2026; TO AMEND SECTION 31-7-13, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CERTAIN PURCHASES MADE BY THE DEPARTMENT OF HEALTH AND/OR THE DEPARTMENT OF REVENUE FOR THE PURPOSE OF FULFILLING THEIR RESPECTIVE RESPONSIBILITIES UNDER THE MISSISSIPPI MEDICAL CANNABIS ACT AND THE PROVISIONS OF THIS ACT TO BE EXEMPT FROM CERTAIN BIDDING REQUIREMENTS; AND FOR RELATED PURPOSES.


 

SS36\HB1676PS.J

 

                                                    Amanda White

                                         Secretary of the Senate