Amendment AA2-AB599

AB599-AA2,5,6 (c) “Dispensary” means a person who obtains packaged and labeled medical marijuana from a licensed processor and dispenses that marijuana at a permanent location to qualifying patients or primary caregivers holding a valid registry identification card issued under s. 73.18 (3), regardless of whether the dispensing is done in exchange for monetary consideration.

AB599-AA2,5,10 (d) “Laboratory” means a person who obtains medical marijuana from a licensed processor and tests that medical marijuana for tetrahydrocannabinol content and the presence of molds, pesticides, heavy metals, and other contaminants.

AB599-AA2,5,12 (e) “Licensee” means a producer, processor, dispensary, transporter, or laboratory that holds a valid license under this section.

AB599-AA2,5,13 (f) “Marijuana" has the meaning given in s. 961.01 (14).

AB599-AA2,5,14 (g) “Medical marijuana" has the meaning given in s. 73.18 (1) (e).

AB599-AA2,5,15 (gm) “Primary caregiver" has the meaning given in s. 73.18 (1) (h).

AB599-AA2,5,19 (h) “Processor" means a person who obtains marijuana from a licensed producer, processes the marijuana into medical marijuana, packages and labels the medical marijuana, and transfers or sells the packaged and labeled medical marijuana to a licensed dispensary.

AB599-AA2,5,21 (i) “Producer” means a person who plants, grows, cultivates, and harvests marijuana and transfers or sells the marijuana to a licensed processor.

AB599-AA2,5,22 (im) "Qualifying patient" has the meaning given in s. 961.01 (20hm).

AB599-AA2,5,23 (j) “School” has the meaning given in s. 118.257 (1) (d).

AB599-AA2,5,25 (k) “Transporter” means a person who transports marijuana or medical marijuana to other licensees.

AB599-AA2,6,9 (2) Annual license required. No person may operate in this state as a producer, processor, dispensary, transporter, or laboratory without a license issued by the commission under this section. A person who engages in more than one of these activities shall obtain a separate license for each activity. A person who operates more than one dispensary location shall obtain a separate license for each location. A person who is an employee of a licensee is not required to obtain a separate license. A license issued under this section expires after one year. A person is not required to obtain a license under this section if the person handles only industrial hemp and holds a valid license under s. 94.55.

AB599-AA2,6,12 (3) License criteria. The commission may issue a license to a producer, processor, dispensary, transporter, or laboratory if the commission determines that all of the following requirements are met:

AB599-AA2,6,21 (a) Notwithstanding ss. 111.321, 111.322, and 111.335, the applicant, or each principal officer or board member of the applicant, has never been convicted of a criminal violation of the federal Controlled Substances Act under 21 USC 801 to 971, the Uniform Controlled Substances Act under ch. 961, or any controlled substances law of another state. The commission shall determine whether this requirement is met on the basis of a criminal history search obtained from the records maintained by the department of justice for each of these persons. The department of justice shall provide information to the commission necessary to determine whether this requirement is met.

AB599-AA2,6,23 (b) The applicant, or each principal officer or board member of the applicant, is at least 21 years of age.

AB599-AA2,7,3 (c) For the 24 months following the first date on which the commission receives applications under this section, the applicant, or at least one principal officer or board member of the applicant, has resided in this state, in accordance with the qualifications set forth in s. 6.10, for at least one year before submitting an application to the commission under this subsection.

AB599-AA2,7,7 (d) 1. If the applicant is a producer or processor, the applicant, or each principal officer or board member of the applicant, does not have any financial interest in a licensed dispensary or laboratory or an applicant for a dispensary or laboratory license.

AB599-AA2,7,11 2. If the applicant is a laboratory, the applicant, or each principal officer or board member of the applicant, does not have any financial interest in a licensed producer, processor, or dispensary or an applicant for a producer, processor, or dispensary license.

AB599-AA2,7,15 3. If the applicant is a dispensary, the applicant, or each principal officer or board member of the applicant, does not have any financial interest in a licensed producer, processor, or laboratory or an applicant for a producer, processor, or laboratory license.

AB599-AA2,7,19 (e) The applicant and each principal officer or board member of the applicant have never had a license revoked and not reinstated under this section or been a principal officer or board member of an entity that has had a license revoked and not reinstated under this section.

AB599-AA2,7,21 (f) The applicant's facility or the site of the applicant's facility is not prohibited by a local ordinance of the county or municipality where the facility would be located.

AB599-AA2,7,23 (g) The applicant's operation is not or will not be located within 300 feet of the premises of a school or child care center.

AB599-AA2,7,25 (h) The applicant has or will have sufficient security measures in place at its operating location.

AB599-AA2,8,1 (i) The applicant has or will have sufficient record-keeping procedures in place.

AB599-AA2,8,3 (j) If the applicant is a laboratory, the applicant employs and retains at least one employee with an advanced degree in a medical or laboratory science.

AB599-AA2,8,6 (k) The applicant provides proof of financial responsibility equal to no less than $1,000,000 for liability for bodily injury that may result from producing, processing, transporting, or dispensing medical marijuana.

AB599-AA2,8,7 (L) The applicant has paid the fee specified under sub. (4).

AB599-AA2,8,9 (m) The applicant meets any other conditions for obtaining a license as required by the department of revenue by rule.

AB599-AA2,8,14 (4) Application and annual renewal fees. (a) The commission shall set, by rule, the amount of application, registration, and renewal fees for applying for and receiving a license under this section, subject to the limitations under par. (b). The amount of the fees under this subsection shall be sufficient to cover the commission's costs of administering and enforcing this section.

AB599-AA2,8,18 (b) 1. For a license under sub. (7) (d) 1. a., the application fee shall be no less than $1,000, but no more than $5,000; the registration fee shall be no less than $50,000, but no more than $100,000; and the renewal fee shall be no less than $50,000, but no more than $150,000.

AB599-AA2,8,22 2. For a license under sub. (7) (d) 1. b., the application fee shall be no less than $10,000, but no more than $15,000; the registration fee shall be no less than $100,000, but no more than $150,000; and the renewal fee shall be no less than $100,000, but no more than $200,000.

AB599-AA2,9,2 3. For a license under sub. (7) (d) 1. c., the application fee shall be no less than $20,000, but no more than $25,000; the registration fee shall be no less than $150,000, but no more than $200,000; and the renewal fee shall be no less than $150,000, but no more than $250,000.

AB599-AA2,9,6 4. For a license under sub. (8), the application fee shall be no less than $1,000, but no more than $25,000; the registration fee shall be no less than $50,000, but no more than $200,000; and the renewal fee shall be no less than $50,000, but no more than $250,000.

AB599-AA2,9,10 5. For a license under sub. (9), the application fee shall be no less than $2,500, but no more than $7,500; the registration fee shall be no less than $6,000, but no more than $9,000; and the renewal fee shall be no less than $5,000, but no more than $45,000.

AB599-AA2,9,12 (5) Employees. A licensee may not employ a person unless all of the following requirements are met:

AB599-AA2,9,13 (a) The person is at least 21 years of age.

AB599-AA2,9,20 (b) Notwithstanding ss. 111.321, 111.322, and 111.335, the person has never been convicted of a criminal violation of the federal Controlled Substances Act under 21 USC 801 to 971, the Uniform Controlled Substances Act under ch. 961, or any controlled substances law of another state, based on a criminal history search obtained from the records maintained by the department of justice. The department of justice shall provide information to the commission necessary to determine whether this requirement is met.

AB599-AA2,9,23 (c) If the person is employed at a dispensary, the person has completed the training required for dispensary employees, which the commission shall establish by rule.

AB599-AA2,9,25 (6) Location. Except as provided by rules promulgated under this section, no licensee may operate within 300 feet of the premises of a school or child care center. If a licensee's operation relocates to within 300 feet of the premises of a school or child care center, the commission shall immediately revoke the licensee's license. The commission shall establish, by rule, whether a licensee may remain in operation or must relocate if the premises of a school or child care center locates within 300 feet of the licensee's operation.

AB599-AA2,10,10 (7) Producers. (a) A licensed producer may plant, grow, cultivate, and harvest marijuana; transfer or sell the marijuana to a licensed processor; and engage in any related activities that are necessary for the operation, such as possessing and storing the marijuana. A licensed producer may transport marijuana from the producer's facility only if the producer has a valid transporter license under sub. (11).

AB599-AA2,10,12 (b) A licensed producer may not plant, grow, cultivate, or harvest marijuana for personal, family, or household use.

AB599-AA2,10,13 (c) A licensed producer may operate only within an enclosed, locked facility.

AB599-AA2,10,14 (d) 1. The commission may issue the following licenses to producers:

AB599-AA2,10,16 a. A Class A license, which allows the producer to annually plant, grow, cultivate, or harvest no more than 200 marijuana plants.

AB599-AA2,10,18 b. A Class B license, which allows the producer to annually plant, grow, cultivate, or harvest no more than 500 marijuana plants.

AB599-AA2,10,20 c. A Class C license, which allows the producer to annually plant, grow, cultivate, or harvest an unlimited number of marijuana plants.

AB599-AA2,10,22 2. The commission may issue no more than 50 Class A licenses, 20 Class B licenses, and 5 Class C licenses.

AB599-AA2,11,2 (e) As part of the application process, the commission shall require an applicant to provide the global positioning system coordinates of the single, contiguous property identified on the license application and on which the marijuana will be planted, grown, cultivated, and harvested.

AB599-AA2,11,9 (8) Processors. (a) A licensed processor may obtain marijuana in this state from a licensed producer, process the marijuana into medical marijuana, transfer samples of the medical marijuana to a licensed laboratory by using a licensed transporter, package and label the medical marijuana, transfer or sell the medical marijuana to a licensed dispensary, and engage in any related activities that are necessary for the operation, such as possessing and storing the marijuana or medical marijuana.

AB599-AA2,11,11 (b) Before transferring medical marijuana to a licensed dispensary, a licensed processor shall do all of the following:

AB599-AA2,11,17 1. Provide samples of each type of medical marijuana that it processes to a licensed laboratory and receive certified test results of those samples showing the tetrahydrocannabinol content of the medical marijuana and showing that the medical marijuana does not contain unsafe levels of any molds, pesticides, heavy metals, or any other contaminant for which the commission requires, by rule, the medical marijuana to be tested.

AB599-AA2,11,19 2. Package the medical marijuana in child-resistant packaging. The commission may establish, by rule, additional packaging requirements.

AB599-AA2,11,24 3. Attach a label to the packaging that identifies the weight, in ounces, of marijuana contained in the package, the tetrahydrocannabinol content of the medical marijuana, and any other information required to be included by the commission by rule. The commission shall promulgate rules specifying marijuana weight equivalencies for different types of medical marijuana.

AB599-AA2,11,25 (c) A licensed processor may operate only within an enclosed, locked facility.

AB599-AA2,12,5 (9) Dispensaries. (a) A licensed dispensary may obtain packaged, labeled medical marijuana from a licensed processor, dispense the medical marijuana according to the provisions of this section, and engage in any related activities that are necessary for the operation, such as possessing and storing the medical marijuana.

AB599-AA2,12,9 (b) A licensed dispensary may dispense medical marijuana only to a person who presents a valid registry identification card issued under s. 73.18 (3) and a valid written hard copy or electronic recommendation under s. 73.18 (2) and only in accordance with the recommendation presented.

AB599-AA2,12,11 (c) Before dispensing medical marijuana, a licensed dispensary shall do all of the following:

AB599-AA2,12,12 1. Verify that the registry identification card presented is valid and unexpired.

AB599-AA2,12,14 2. Verify that the person receiving the medical marijuana is the person identified on the registry identification card.

AB599-AA2,12,20 3. Attach a label to the packaging that identifies the name and address of the dispensary, the date on which the medical marijuana is dispensed, the name of the practitioner who recommended the use of medical marijuana, the name of the qualifying patient, the name of the primary caregiver if the medical marijuana is dispensed to a primary caregiver, and any other information required to be included by the commission by rule.

AB599-AA2,12,25 (d) No more than 10 licensed dispensaries may operate in a county with a population exceeding 500,000; no more than 5 licensed dispensaries may operate in a county with a population that is less than 500,000, but at least 100,000; and no more than 3 licensed dispensaries my operate in a county with a population less than 100,000.

AB599-AA2,13,5 (10) Laboratories. (a) A licensed laboratory may obtain samples of medical marijuana from a licensed processor, test and certify the tetrahydrocannabinol content of the medical marijuana and whether the medical marijuana contains any contaminants, and engage in any related activities that are necessary for the operation, such as possessing and storing the medical marijuana.

AB599-AA2,13,8 (b) If any part of a sample remains after testing and certifying the tetrahydrocannabinol content of the sample, the licensed laboratory shall destroy the sample or return the sample to the licensed processor.

AB599-AA2,13,9 (c) A licensed laboratory may operate only within an enclosed, locked facility.

AB599-AA2,13,17 (11) Transporters. Marijuana or medical marijuana may be transported on public roads only by a licensed transporter and only to other licensees. A transporter shall designate a crew of at least 2 individuals to transport any shipment of marijuana or medical marijuana, and at least one individual shall remain with the transportation vehicle at all times. A transporter shall keep accurate and complete records, as prescribed by the commission, including route plans and manifests, and shall provide such records to the commission at the time and in the manner prescribed by the commission and to law enforcement upon request.

AB599-AA2,13,23 (12) Statewide tracking system. (a) The commission shall establish and maintain a statewide tracking system to ensure compliance with this section and s. 73.18 and subch. IV of ch. 139, to track marijuana and medical marijuana from cultivation to consumption by qualifying patients, to enable product recalls, and to ensure efficient revenue collection. The commission shall use the tracking system to do all of the following:

AB599-AA2,13,25 1. Track inventory throughout the product life of marijuana and medical marijuana, including the monitoring of seed-to-sale transfers.

AB599-AA2,14,3 2. Verify that a registry identification card issued under s. 73.18 (3) is current and valid and has not been suspended, revoked, or denied, and record other information concerning such cards.

AB599-AA2,14,5 3. Record the date, time, quantity, and price of each sale or transfer of marijuana or medical marijuana to a qualifying patient or primary caregiver.

AB599-AA2,14,7 4. Ensure that a specific sale or transaction does not exceed permissible quantity limits.

AB599-AA2,14,8 5. Receive and integrate 3rd-party inventory control and tracking systems.

AB599-AA2,14,10 6. Record any other information, as determined by the commission, that is applicable to licensees, qualifying patients, and primary caregivers.

AB599-AA2,14,13 (b) All persons issued a license under this section shall comply with the commission's requirements, as prescribed by the commission by rule, for maintaining the statewide tracking system under this subsection.

AB599-AA2,14,17 (13) Confidentiality. (a) The commission shall ensure that any of the following information that is in the commission's possession is confidential and not open to public inspection or copying under s. 19.35 (1), except that it shall be made available to a law enforcement agency or law enforcement officer:

AB599-AA2,14,19 1. Information relating to the locations of marijuana production and processing operations.

AB599-AA2,14,21 2. Personally identifiable information relating to a person who is lawfully engaging in activities related to marijuana.

AB599-AA2,14,24 3. Information obtained about an individual as a result of any criminal history search performed in relation to authorizing the individual to engage in activities related to marijuana.

AB599-AA2,15,2 4. Any other information about activities related to marijuana that could create a security risk if disclosed.

AB599-AA2,15,6 (b) A licensed dispensary shall ensure that any information that is in the dispensary's possession relating to a qualifying patient or primary caregiver is confidential, except that it shall be made available to a law enforcement agency or law enforcement officer.

AB599-AA2,15,9 (14) Inspections. The commission may inspect, without prior notice, the premises of an applicant or licensee and any records required to be retained by a licensee.

AB599-AA2,15,11 (15) False information on an application. No person may intentionally submit false information in any application submitted under this section.

AB599-AA2,15,16 (16) Penalties and disciplinary actions. (a) A person who violates any provision of this section, or an order issued or rule promulgated under this section, may be required to forfeit not less than $200 nor more than $5,000 or, for an offense committed within 5 years of an offense for which a penalty has been assessed under this section, may be required to forfeit not less than $400 nor more than $10,000.

AB599-AA2,15,20 (b) In addition to or in lieu of any other penalty or disciplinary action allowed under state law or under rules promulgated by the commission, the commission may, for any reason specified by the commission by rule, suspend, with or without prior hearing, revoke, refuse to issue, or refuse to renew a license issued under this section.

AB599-AA2,15,24 (17) Appeal. Any person aggrieved by an order or determination issued by the commission under this section or s. 73.18 may appeal the order or determination as a contested case under ch. 227 by filing with the commission a request for a hearing within 30 days after the date of the order or determination.

AB599-AA2,16,6 (18) Rules. No later than 90 days after the creation of the commission, as provided under s. 15.435 (2) (a), the commission shall promulgate rules necessary to administer and enforce this section. When promulgating rules under this subsection, the commission shall consider standards and procedures that have been found to be best practices relating to the use and regulation of marijuana and medical marijuana.

AB599-AA2,16,8 (19) Medical marijuana fund. The commission shall deposit all fees and penalties collected under this section into the medical marijuana fund.

AB599-AA2,11 Section 11. 73.18 of the statutes is created to read:

AB599-AA2,16,10 73.18 Medical marijuana; dispensaries. (1) Definitions. In this section:

AB599-AA2,16,12 (a) “Applicant” means a person who is applying for a registry identification card under sub. (3).