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Amends ORS 475.304(7) as follows:

(7) A registry identification cardholder or the designated primary caregiver of the a cardholder may reimburse the a person responsible for a marijuana grow site for the costs of supplies and utilities associated with the production of medical marijuana. for the registry identification cardholder. No other costs associated with the production of marijuana for the registry identification cardholder, including the cost of labor, may be reimbursed.

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SECTION 1. ORS 475.302 is amended to read: 475.302 Definitions for ORS 475.300 to 475.346. As used in ORS 475.300 to 475.346:

(6) "Dispensary means any nonprofit entity, including the directors, employees or agents of such an entity, licensed to possess, produce, deliver, transport, supply and dispense usable medical marijuana and medical marijuana plants to registry identification cardholders and to other dispensaries. Dispensaries may also assist patients with other products and services including equipment, supplies, and educational materials.

(7) "Licensed medical marijuana producer" or "producer" means a person or an entity licensed to produce medical marijuana and medical marijuana plants for dispensaries. A licensed medical marijuana producer may be an individual Oregon resident and the employees of the individual or a licensed dispensary and the directors and employees of the dispensary.

(13) "Regulated medical marijuana supply system" or "system" means the method authorized by rules adopted by the department for producing and distributing medical marijuana to registry identification cardholders and the individuals and nonprofit entities licensed to produce and distribute medical marijuana to registry identification cardholders.

SECTION 2. Sections 3,4 and 5 of this Act are added to and made a part of ORS 475.300 to 475.346.

SECTION 3. (1) The Department of Human Services shall establish a regulated medical marijuana supply system. No general fund revenue shall be used to establish the system. The system shall be funded through program fees. The purpose of the system is to provide a safe, regulated supply of medical marijuana for registry identification cardholders and to provide revenue to help fund the systems established under ORS 475300 to 475.346 and other department programs.

(2) The provisions of this section are intended only to provide for an adequate supply of medical marijuana for registry identification cardholders and are not intended to change current civil or criminal laws governing the use of marijuana for nonmedical purposes.

(3) The purpose of the regulated medical marijuana supply system is to supplement the current system which requires patients to produce their own medicine. The system shall not infringe on a registry identification cardholder's ability to produce the registry identification cardholder's own medical marijuana or to designate a person responsible for a marijuana grow site to do so for the registry identification cardholder.

(4)(a) All medical marijuana dispensed by the system shall be produced by licensed producers.

(b) Notwithstanding OW 475.304:

(A) A licensed dispensary may dispense medical marijuana and medical marijuana plants to any registry identification cardholder or person responsible for a marijuana grow site for use by the patient. A dispensary may be reimbursed for the costs associated with the production and dispensing of the medical marijuana.

(B) A licensed producer may provide medical marijuana and medical marijuana plants to licensed dispensaries and be reimbursed for the costs associated with the production of the medical marijuana and medical marijuana plants. A producer may transfer for no consideration medical marijuana and medical marijuana plants to any registry identification cardholder or person responsible for a marijuana grow site for use by the patient.

(5) System revenues shall be used to fund:

(a) Costs associated with the implementation and operation of the system established under this Act;

(b) The registry system established under ORS 475.300 to 475.346;

(c) The scientific research program established under section 5 of this Act;

(d) The program to assist low-income and needy registry identification cardholders in obtaining medical marijuana, established under section 4 of this Act; and

(e) Other department programs.

(6)(a) A person who has been convicted of a violent felony listed in ORS 137.635 or a felony theft offense listed in 164.015 shall not be licensed as a producer or as an employee of a producer or be licensed as a director or employee of a dispensary for five years from the date of the conviction. Any person convicted of a felony manufacturing or delivery violation of 475.840 (l)(a) or (b) after the effective date of this Act, may not be licensed as a producer or as an employee of a producer or be licensed as a director or employee of a dispensary for five years from the date of the conviction.

(b) The department shall conduct a criminal records check under ORS 181.534 of any person whose name is submitted as a dispensary director or employee or as a producer or employee of a producer in order to comply with Section (6)(a).

(c) A person who is less than 21 years of age may not be an employee or director of a dispensary or be a producer or be an employee of a producer.

(7) Any dispensary, or any location used by a licensed producer to produce medical marijuana is subject to reasonable inspection by the department.

(8) All dispensaries and producers shall submit quarterly reports on all of their financial transactions, including transfers for no consideration.

(9) Dispensaries and producers shall pay to the department quarterly fees equal to 10 percent of their gross revenue.

(10) The department shall promulgate administrative rules necessary to implement this Act within 6 months of the effective date of this Act, including, but not necessarily limited to, rules governing:

(a) Permissible locations for dispensaries; initially dispensaries shall not be established within 1,000 feet of any school or within residential neighborhoods;

(b) Minimum requirements for security plans of dispensaries; and

(c) Penalties for dispensaries if directors or employees of a dispensary are convicted of criminal violations involving the operation of the dispensary.

(11) The department shall issue a dispensary license to a nonprofit entity that submits to the department:

(a) The name of the entity and any name used in dispensing medical marijuana.

(b) The address of any property used by the dispensary to possess, produce, deliver, transport, dispense, or distribute marijuana.

(c) The names, addresses and dates of birth of all principal officers and board members of the dispensary.

(d) The names, addresses and dates of birth of all dispensary employees.

(e) A nonrefundable fee paid to the department in the amount established by the department by rule. The initial fee for a dispensary license is $2,000.

(f) Proof of Oregon residency of all principal officers, board members and employees.

(g) Any other information the department considers necessary.

(h) A dispensary license is valid for one year and shall be renewed prior to the expiration of a current license.

(i) The department shall issue a dispensary registry identification card to each listed director and employee of a qualifying dispensary within 30 days of issuing a license. The fee for each card shall initially be set at $10.

(12) The Department of Human Services shall establish by rule a medical marijuana production site registration system to authorize production of marijuana by a producer. The medical marijuana production site registration system adopted must require a producer to submit an application to the department that includes:

(a) The name of the producer responsible for the medical marijuana production site and any employees of the producer.

(b) The addresses of the property used by the producer to produce marijuana.

(c) A nonrefundable fee paid to the department in the amount established by the department by rule. The initial fee for a producer license is $1,000.

(d) Proof of Oregon residency and age.

(e) Any other information the department considers necessary.

(f) A producer license is valid for one year and shall be renewed prior to the expiration of a current license.

(g) The Department shall issue a producer registry identification card to each listed producer and employee of the producer within 30 days of issuing a license who has met the requirements of this section. The fee for each card shall initially be set at $10.

(h) The Department shall issue a medical marijuana production site card to each producer that has met the requirements of this section. The medical marijuana production site card must be prominently posted at the location of the medical marijuana production site.

(13) A dispensary or producer may not:

(a) Dispense to any registry identification cardholder medical marijuana or marijuana plants in excess of the amounts allowed under ORS 475.320; or

(b) Possess more marijuana plants or usable medical marijuana than allowed by department rule. These amounts shall initially be set at the amounts that a person responsible for a marijuana grow site for four patients may possess under the current marijuana grow site registry system.

(14)(a) A medical marijuana dispensary including its directors, agents and employees of the dispensary are excepted from the criminal laws of this state for possession, production, delivery, or transportation of marijuana, or aiding and abetting another in the possession, production, delivery, or transportation of marijuana, or any other criminal offense in which possession, production, delivery, or transportation of marijuana is an element if the dispensary and the directors, agents and employees of the dispensary are in substantial compliance with this section and the applicable rules adopted by the department for regulating medical marijuana dispensaries.

(b) The department may suspend or revoke the license of a dispensary that is not in substantial compliance with this section. The department, by rule, may also establish fines and penalties for minor violations of the provisions of this section.

(c) A producer with a valid license is excepted from the criminal laws of this state for possession, production, delivery, or transportation of marijuana, or aiding and abetting another in the possession, production, delivery, or transportation of marijuana, or any other criminal offense in which possession, production, delivery, or transportation of marijuana is an element if the producer is in substantial compliance with this section and the applicable rules adopted by the department for regulating medical marijuana producers.

(d) The department may suspend or revoke any producer's license that is not in substantial compliance with this section. The department, by rule, may also establish fines and penalties for minor violations of the provisions of this section.

(15) A person authorized to possess, produce, deliver or transport marijuana for medical use pursuant to Section 3 of this Act is not excepted from the criminal laws of this state if the person:

(a) Drives under the influence of marijuana as provided in ORS 813.010.

(b) Engages in the possession, production, distribution, or transportation of marijuana in public view.

(c) Delivers marijuana to any individual who the person knows is not a registry identification cardholder or person responsible for a marijuana grow site.

(d) Manufactures or distributes marijuana at an address not registered with the department.

(e) Fails to report transfer of medical marijuana authorized under this section to the department.

(16) Dispensaries shall be established as nonprofit entities. They shall be subject to all applicable Oregon laws governing nonprofit entities, but need not have received 501(c)(3) tax exempt status from the Internal Revenue Service.

(17) List of persons and entities licensed as dispensaries and producers shall be protected by the same provisions protecting registry identification cardholders, designated primary caregivers and authorized grow sites under the disclosure rules established by ORS 475331.

(18) Effect of possession of producer card or dispensary card on search and seizure rights shall have the same effect of possession of registry identification card or designated primary caregiver card established under ORS 475.323

(19) A law enforcement officer who determines that a dispensary or producer cardholder is in possession of amounts of usable marijuana or numbers of marijuana plants in excess of the amount or number authorized by this Act may confiscate only any usable marijuana or plants that are in excess of the amount or number authorized.

SECTION 4. (1) The Department of Human Services, with input from the Advisory Committee on Medical Marijuana, shall develop and adopt rules to implement a program to assist low-income and needy registry identification cardholders in obtaining medical marijuana. The purpose of this program is to help patients who would not otherwise have safe access to obtain a minimum safe supply of medical marijuana.

(2)(a) The department shall annually review the program, submit an annual report on the program to the Advisory Committee on Medical Marijuana, and, with input from the Advisory Committee on Medical Marijuana, adopt rules and procedures necessary to improve the operation of this program.

(b) The department shall, if necessary, establish penalties for violations of the rules adopted under this section.

(3) No general fund revenue shall be used for this program. This program shall be funded by system fees.

SECTION 5. (1) The Department of Human Services may conduct scientific research into the efficacy and safety of medical marijuana used by registry identification cardholders of the Oregon Medical Marijuana Program.

(a) The purpose of the research is to assist physicians and patients in evaluating the risks and benefits of using medical marijuana and to provide a scientific basis for future policies.

(b) The department may provide grants to persons in this state to conduct such research.

(c) Research may include developing quality control, purity, and labeling standards for medical marijuana dispensed through the system.

(2) The department shall report the results of the research required under subsection (1) of this section to the Advisory Committee on Medical Marijuana established under ORS 475.303.

Section 6. Severability. If any Section or part of this Act is declared invalid, then all the remaining Sections remain in effect.

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The People of Oregon hereby add the following Section to Article I of the Oregon Constitution:

1. The people reserve to all persons 21 years of age and older the personal privacy right to the private consumption, possession and cultivation the plant Cannabis and all of its families and byproducts. Except as otherwise specifically permitted by law, this right does not include the transfer of Cannabis for consideration.

2. This amendment is effective upon passage.

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Kevin Mannix, funded by out-of-state millionaire Loren Parks, is attempting to repeal medical marijuana in Oregon. The Act would force the taxpayers of Oregon to fund a prescription Marinol or Cesamet regimen for medical marijuana patients who currently cost the taxpayers nothing (in fact, medical marijuana in Oregon is self-funding and the state Department of Human Services took $920,000 surplus from the program to balance its budget shortfalls in other areas -- marijuana funded health care!)

Marinol and Cesamet are synthetic 100% THC pills that cost $10-$20 apiece, meaning one patient could cost thousands of taxpayer dollars per year. Natural marijuana is between 7%-15% THC and a far more effective treatment than the pills for most medical marijuana patients (how does a vomiting chemotherapy patient swallow a pill, exactly?)

Most insidious about the initiative is how it hides the repeal of medical marijuana within so many other measures that fight real crime - domestic violence, drunken driving, sex offenses, and assaults. Mannix must realize that a simple measure to repeal medical marijuana wouldn't stand a chance when 78% of the people approve of it.

(See also ornorml.org/mannix for updates.)

Section 1. This Act shall be known as the Oregon Crimefighting Act. The purpose of this Act is to reduce all types of crime in Oregon, thereby better protecting our people and stimulating economic growth through improved and aggressive prevention, early intervention, investigation, prosecution, accountability, and rehabilitation. Drug abuse and addiction are heavily associated with crime, and these problems are important targets of criminal justice laws. To fight crime, this Act:

a. increases penalties for repeat major sex offenders, and prevents registered sex offenders from holding elective office;

b. establishes Meth Strike Forces, to focus on drug crime, and a Coordinated Grant Program to improve funding for drug prevention and treatment programs;

c. allows tax credits for contributions to Meth Strike Forces and drug prevention or drug treatment programs;

d. establishes a Commission on Domestic Violence, Child Abuse, and Sex Crimes to propose reforms in these areas as well as regarding use of the Internet by sexual predators;

e. prohibits convicted criminals from voting while incarcerated;

f. provides for prompt processing of suspected perpetrator DNA evidence in rape and sex abuse cases;

g. replaces the Medical Marijuana Act with a more medically appropriate Marijuana Derivative and Synthetic Cannabinoid Prescription Program to focus help on those with legitimate needs;

h. sets staffing standards to bring the Oregon State Police Patrol Division back to levels achieved in the 1970s;

i. establishes a Retired Senior Volunteer Police program to encourage retired police officers to continue to serve, part-time;

j. allows corrections officers to act as peace officers in the line of duty;

k. increases penalties for repeat intoxicated drivers;

I. requires criminal background checks on incarcerated persons, before they are released; and

m. restricts prison early release programs

Section 10. In order to reduce abuse of the system currently in place, the people hereby replace the "Medical Marijuana Act" with the following Marijuana Derivative and Synthetic Cannabinoid Prescription Program.

a. Cesamet and Marinol are synthetic cannabinoids which are approved by the Food 3 and Drug Administration for treating loss of appetite and for treating nausea.

b. The provisions of this Section, relating to Cesamet and Marinol use, may be expanded to include other drugs approved by the Food and Drug Administration that include cannabinoids, their derivatives, or synthetic cannabinoids, if such drugs are to be used for treatment of diagnosed debilitating medical conditions covered by this Section. Such extension shall be by way of rules established by the Department of Human Services, which is authorized to make such rules.

c. When an attending physician determines that a patient will likely benefit from use of prescribed Cesamet or Marinol for a diagnosed debilitating medical condition, so as to prevent or mollify decreased appetite or severe nausea, or for control of intractable pain or other symptoms of the condition, and the patient does not have health insurance which covers all or part of the cost of such medication, the patient may apply to the Department of Human Services for provision of the cost which is not covered by insurance. The Department of Human Services shall promptly process the application and, upon confirming that the application meets the requirements of this Act, shall pay or reimburse the amount necessary to ensure the delivery of Cesamet or Marinol to the patient.

d. The Department of Human Services shall establish rules for carrying out this Program. The Department may use the Oregon Health Plan as a process for carrying out this Program, if the Department finds this will be efficacious. The Department may consult with a medical doctor as to the appropriateness of any prescription for which an application for coverage is presented to the Department. The Department may, in its discretion, request an independent medical exam, by a medical doctor chosen by and paid for by the Department, in determining the validity of an application.

e. The purpose of this Program is to ensure the availability of Cesamet and Marinol to patients who need such medication, regardless of coverage by health insurance. Because this is a benefit for Oregonians, at the expense of Oregon's government, no patient is eligible for participation in the Marijuana Derivative and Synthetic Cannabinoid Prescription Program unless the patient has been a legal resident of Oregon for at least one continuous year immediately preceding application for coverage under the Program.

f. The attending physician shall monitor the patient's use of Cesamet or Marinol on the same basis as other controlled substances.

g. For purposes of this section:

I. "Attending physician" means a Doctor of Medicine or Doctor of Osteopathy licensed in Oregon under ORS Chapter 677.

ii. "Controlled substance" has the meaning given in ORS 475.005.

iii. "Diagnosed debilitating medical condition" means a condition diagnosed by an attending physician who determines that the condition is cancer; multiple sclerosis; glaucoma; positive status for human immunodeficiency virus or acquired immune deficiency syndrome; or any other condition where the attending physician believes that a prescription for the use of Cesamet or Marinol, or other drug covered by this Section, is a preferred form of treatment or a preferred form of necessary palliative care.

h. ORS 475.300 through ORS 475.346 are repealed upon passage of this Act. Any person who, upon the effective date of this Act, holds a valid registry identification card issued under ORS 475.300 through ORS 475. 346, may, through March 31, 2009, rely on the protections of such card, just as if ORS 475.300 through ORS 475.346 remained in effect. The Department of Human Services shall mail letters notifying registry identification cardholders that such cards are ineffective after March 31, 2009.

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This is the exact language of the Oregon Cannabis Tax Act (OCTA) filed by Chief Petitioners Madeline Martinez (of Oregon NORML) and D. Paul Stanford (of Campaign for the Regulation and Restoration of Hemp) for 2010 as I2. Stanford has filed the initiative before in the 1990's, doing tremendous work in drafting the language and shepherding it through all of the reviews and rewrites necessary for it to qualify for the ballot and pass constitutional muster.

Anthony Johnson (of Voter Power) has filed this initiative for 2008.

We feel it would be better to focus energies this year on defeating Mannix's I131 and protecting OMMA and save OCTA for the off-presidential-year election in 2010. However, we cannot oppose and must support the exact same language for which Stanford and CRRH have worked over ten years.

This bill would make federal authorities respect states' current laws on medicinal cannabis and end DEA raids on facilities distributing medical marijuana legally under state law.

Frank's pending bill, co-sponsored by presidential candidate Rep. Ron Paul (R-TX), seeks to eliminate all federal penalties prohibiting the personal use and possession of up to 100 grams (3 1/2 ounces) of marijuana. Under this measure, adults who consume cannabis would no longer face arrest, prison, or even the threat of a civil fine. The bill also eliminates all penalties for the not-for-profit transfers of up to one ounce of pot.