Amendment AA2-AB599

ASSEMBLY AMENDMENT 2, TO ASSEMBLY BILL 599

February 23, 2022 - Offered by Representative Neubauer.

AB599-AA2,1,1 At the locations indicated, amend the bill as follows:

AB599-AA2,1,3 1. Page 1, line 2: delete “regulating kratom products," and substitute “ medical marijuana,".

AB599-AA2,1,5 2. Page 2, line 1: delete the material beginning with that line and ending with page 4, line 19, and substitute:

AB599-AA2,1,6 “ Section 1. 15.435 (title) of the statutes is amended to read:

AB599-AA2,1,7 15.435 (title) Same; attached boards and commissions.

AB599-AA2,2 Section 2. 15.435 (2) of the statutes is created to read:

AB599-AA2,1,12 15.435 (2) Medical marijuana regulatory commission. (a) Creation; membership. No later than 30 days after the effective date of this paragraph .... [LRB inserts date], there is created a medical marijuana regulatory commission attached to the department of revenue under s. 15.03, consisting of the following members:

AB599-AA2,1,13 1. One member appointed by the governor.

AB599-AA2,2,1 2. One member appointed by the senate majority leader.

AB599-AA2,2,2 3. One member appointed by the speaker of the assembly.

AB599-AA2,2,3 4. One member appointed by the senate minority leader.

AB599-AA2,2,4 5. One member appointed by the assembly minority leader.

AB599-AA2,2,7 (b) Chairperson. The governor shall designate one of the appointees under par. (a) to serve as chairperson for a 2-year term. The chairperson is responsible for the commission's daily operations and administrative oversight.

AB599-AA2,2,9 (c) Assistance. The commission may request of any state agency such assistance as may be necessary for the commission to fulfill its duties.

AB599-AA2,2,11 (d) Licenses. The commission shall begin issuing licenses under s. 73.17 no sooner than 180 days after the creation of the commission.

AB599-AA2,2,16 (e) Report. 1. Annually, the commission shall submit a report to the legislature under s. 13.172 (2) that provides an overview of the medical marijuana industry in this state, specifies the administrative and enforcement actions undertaken by the commission, and makes recommendations regarding the operation of the commission and the administration of ss. 73.17 and 73.18 and subch. IV of ch. 139.

AB599-AA2,2,21 2. No later than January 15, 2022, and no later than each January 15 thereafter, the commission shall submit to the legislature, as provided under s. 13.172 (2), its recommendation for using moneys from the medical marijuana fund for law enforcement drug prevention programs, treatment alternative and diversion programs, and alcohol and other drug abuse treatment programs.

AB599-AA2,3 Section 3. 15.437 of the statutes is created to read:

AB599-AA2,3,2 15.437 Same; councils. (1) Council on medical marijuana. (a) There is created in the department of revenue a council on medical marijuana to provide advice to the medical marijuana regulatory commission. The council consists of the following members:

AB599-AA2,3,3 1. One individual who represents the interests of licensees under s. 73.17.

AB599-AA2,3,4 2. One individual who represents local government.

AB599-AA2,3,5 3. One individual who represents law enforcement.

AB599-AA2,3,6 4. One individual who represents medical providers.

AB599-AA2,3,7 5. One individual who represents providers of financial services.

AB599-AA2,3,9 6. The secretary of agriculture, trade and consumer protection or the secretary's designee.

AB599-AA2,3,10 7. The secretary of health services or the secretary's designee.

AB599-AA2,3,11 8. The secretary of revenue or the secretary's designee.

AB599-AA2,3,12 9. One member appointed by the senate majority leader.

AB599-AA2,3,13 10. One member appointed by the senate minority leader.

AB599-AA2,3,14 11. One member appointed by the speaker of the assembly.

AB599-AA2,3,15 12. One member appointed by the assembly minority leader.

AB599-AA2,3,17 (b) The governor shall appoint the members under par. (a) 1. to 5. All members serve for staggered 3-year terms, as determined by the secretary of revenue.

AB599-AA2,4 Section 4. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table - See PDF for table - See PDF for table - See PDF for table

AB599-AA2,5 Section 5. 20.566 (9) of the statutes is created to read:

AB599-AA2,4,5 20.566 (9) Medical marijuana regulatory commission. (q) General program operations and enforcement. From the medical marijuana fund, the amounts in the schedule for general program operations, administration, and enforcement of ss. 73.17 and 73.18 and subch. IV of ch. 139.

AB599-AA2,6 Section 6. 20.923 (4) (e) 13. of the statutes is created to read:

AB599-AA2,4,8 20.923 (4) (e) 13. Revenue, department of: medical marijuana regulatory commission: members and chairperson.

AB599-AA2,7 Section 7. 20.923 (6) (hp) of the statutes is created to read:

AB599-AA2,4,11 20.923 (6) (hp) Revenue, department of: medical marijuana regulatory commission: all positions other than the members and chairperson.

AB599-AA2,8 Section 8. 25.56 of the statutes is created to read:

AB599-AA2,4,16 25.56 Medical marijuana fund. There is established a separate nonlapsible trust fund, designated as the medical marijuana fund, consisting of all revenue from the fees, taxes, interest, and penalties under ss. 73.17 and 73.18 and subch. IV of ch. 139.

AB599-AA2,9 Section 9. Chapter 73 (title) of the statutes is amended to read:

AB599-AA2,4,22 CHAPTER 73 TAX APPEALS COMMISSION, medical marijuana regulatory commission, AND DEPARTMENT OF REVENUE

AB599-AA2,10 Section 10. 73.17 of the statutes is created to read:

AB599-AA2,4,24 73.17 Medical marijuana; licensees. (1) Definitions. In this section:

AB599-AA2,4,25 (a) “Child care center” has the meaning given in s. 49.136 (1) (ad).

AB599-AA2,5,1 (b) “Commission” means the medical marijuana regulatory commission.

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.