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ASSEMBLY AMENDMENT 2,
TO ASSEMBLY BILL 599
February 23, 2022 - Offered by Representative Neubauer.
AB599-AA2,1,11 At the locations indicated, amend the bill as follows:
AB599-AA2,1,3 21. Page 1, line 2: delete “regulating kratom products," and substitute “ medical
3marijuana,".
AB599-AA2,1,5 42. Page 2, line 1: delete the material beginning with that line and ending with
5page 4, line 19, and substitute:
AB599-AA2,1,6 6 Section 1. 15.435 (title) of the statutes is amended to read:
AB599-AA2,1,7 715.435 (title) Same; attached boards and commissions.
AB599-AA2,2 8Section 2. 15.435 (2) of the statutes is created to read:
AB599-AA2,1,129 15.435 (2) Medical marijuana regulatory commission. (a) Creation;
10membership
. No later than 30 days after the effective date of this paragraph .... [LRB
11inserts date], there is created a medical marijuana regulatory commission attached
12to the department of revenue under s. 15.03, consisting of the following members:
AB599-AA2,1,1313 1. One member appointed by the governor.
AB599-AA2,2,1
12. One member appointed by the senate majority leader.
AB599-AA2,2,22 3. One member appointed by the speaker of the assembly.
AB599-AA2,2,33 4. One member appointed by the senate minority leader.
AB599-AA2,2,44 5. One member appointed by the assembly minority leader.
AB599-AA2,2,75 (b) Chairperson. The governor shall designate one of the appointees under par.
6(a) to serve as chairperson for a 2-year term. The chairperson is responsible for the
7commission's daily operations and administrative oversight.
AB599-AA2,2,98 (c) Assistance. The commission may request of any state agency such
9assistance as may be necessary for the commission to fulfill its duties.
AB599-AA2,2,1110 (d) Licenses. The commission shall begin issuing licenses under s. 73.17 no
11sooner than 180 days after the creation of the commission.
AB599-AA2,2,1612 (e) Report. 1. Annually, the commission shall submit a report to the legislature
13under s. 13.172 (2) that provides an overview of the medical marijuana industry in
14this state, specifies the administrative and enforcement actions undertaken by the
15commission, and makes recommendations regarding the operation of the
16commission and the administration of ss. 73.17 and 73.18 and subch. IV of ch. 139.
AB599-AA2,2,2117 2. No later than January 15, 2022, and no later than each January 15
18thereafter, the commission shall submit to the legislature, as provided under s.
1913.172 (2), its recommendation for using moneys from the medical marijuana fund
20for law enforcement drug prevention programs, treatment alternative and diversion
21programs, and alcohol and other drug abuse treatment programs.
AB599-AA2,3 22Section 3. 15.437 of the statutes is created to read:
AB599-AA2,3,2 2315.437 Same; councils. (1) Council on medical marijuana. (a) There is
24created in the department of revenue a council on medical marijuana to provide

1advice to the medical marijuana regulatory commission. The council consists of the
2following members:
AB599-AA2,3,33 1. One individual who represents the interests of licensees under s. 73.17.
AB599-AA2,3,44 2. One individual who represents local government.
AB599-AA2,3,55 3. One individual who represents law enforcement.
AB599-AA2,3,66 4. One individual who represents medical providers.
AB599-AA2,3,77 5. One individual who represents providers of financial services.
AB599-AA2,3,98 6. The secretary of agriculture, trade and consumer protection or the
9secretary's designee.
AB599-AA2,3,1010 7. The secretary of health services or the secretary's designee.
AB599-AA2,3,1111 8. The secretary of revenue or the secretary's designee.
AB599-AA2,3,1212 9. One member appointed by the senate majority leader.
AB599-AA2,3,1313 10. One member appointed by the senate minority leader.
AB599-AA2,3,1414 11. One member appointed by the speaker of the assembly.
AB599-AA2,3,1515 12. One member appointed by the assembly minority leader.
AB599-AA2,3,1716 (b) The governor shall appoint the members under par. (a) 1. to 5. All members
17serve for staggered 3-year terms, as determined by the secretary of revenue.
AB599-AA2,4 18Section 4. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
19the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF
AB599-AA2,5
1Section 5. 20.566 (9) of the statutes is created to read:
AB599-AA2,4,52 20.566 (9) Medical marijuana regulatory commission. (q) General program
3operations and enforcement
. From the medical marijuana fund, the amounts in the
4schedule for general program operations, administration, and enforcement of ss.
573.17 and 73.18 and subch. IV of ch. 139.
AB599-AA2,6 6Section 6. 20.923 (4) (e) 13. of the statutes is created to read:
AB599-AA2,4,87 20.923 (4) (e) 13. Revenue, department of: medical marijuana regulatory
8commission: members and chairperson.
AB599-AA2,7 9Section 7. 20.923 (6) (hp) of the statutes is created to read:
AB599-AA2,4,1110 20.923 (6) (hp) Revenue, department of: medical marijuana regulatory
11commission: all positions other than the members and chairperson.
AB599-AA2,8 12Section 8. 25.56 of the statutes is created to read:
AB599-AA2,4,16 1325.56 Medical marijuana fund. There is established a separate nonlapsible
14trust fund, designated as the medical marijuana fund, consisting of all revenue from
15the fees, taxes, interest, and penalties under ss. 73.17 and 73.18 and subch. IV of ch.
16139.
AB599-AA2,9 17Section 9. Chapter 73 (title) of the statutes is amended to read:
AB599-AA2,4,2218 CHAPTER 73
19 TAX APPEALS COMMISSION,
20 medical marijuana regulatory
21 commission,
AND DEPARTMENT
22 OF REVENUE
AB599-AA2,10 23Section 10. 73.17 of the statutes is created to read:
AB599-AA2,4,24 2473.17 Medical marijuana; licensees. (1) Definitions. In this section:
AB599-AA2,4,2525 (a) “Child care center” has the meaning given in s. 49.136 (1) (ad).
AB599-AA2,5,1
1(b) “Commission” means the medical marijuana regulatory commission.
AB599-AA2,5,62 (c) “Dispensary” means a person who obtains packaged and labeled medical
3marijuana from a licensed processor and dispenses that marijuana at a permanent
4location to qualifying patients or primary caregivers holding a valid registry
5identification card issued under s. 73.18 (3), regardless of whether the dispensing is
6done in exchange for monetary consideration.
AB599-AA2,5,107 (d) “Laboratory” means a person who obtains medical marijuana from a
8licensed processor and tests that medical marijuana for tetrahydrocannabinol
9content and the presence of molds, pesticides, heavy metals, and other
10contaminants.
AB599-AA2,5,1211 (e) “Licensee” means a producer, processor, dispensary, transporter, or
12laboratory that holds a valid license under this section.
AB599-AA2,5,1313 (f) “Marijuana" has the meaning given in s. 961.01 (14).
AB599-AA2,5,1414 (g) “Medical marijuana" has the meaning given in s. 73.18 (1) (e).
AB599-AA2,5,1515 (gm) “Primary caregiver" has the meaning given in s. 73.18 (1) (h).
AB599-AA2,5,1916 (h) “Processor" means a person who obtains marijuana from a licensed
17producer, processes the marijuana into medical marijuana, packages and labels the
18medical marijuana, and transfers or sells the packaged and labeled medical
19marijuana to a licensed dispensary.
AB599-AA2,5,2120 (i) “Producer” means a person who plants, grows, cultivates, and harvests
21marijuana and transfers or sells the marijuana to a licensed processor.
AB599-AA2,5,2222 (im) "Qualifying patient" has the meaning given in s. 961.01 (20hm).
AB599-AA2,5,2323 (j) “School” has the meaning given in s. 118.257 (1) (d).
AB599-AA2,5,2524 (k) “Transporter” means a person who transports marijuana or medical
25marijuana to other licensees.
AB599-AA2,6,9
1(2) Annual license required. No person may operate in this state as a
2producer, processor, dispensary, transporter, or laboratory without a license issued
3by the commission under this section. A person who engages in more than one of
4these activities shall obtain a separate license for each activity. A person who
5operates more than one dispensary location shall obtain a separate license for each
6location. A person who is an employee of a licensee is not required to obtain a
7separate license. A license issued under this section expires after one year. A person
8is not required to obtain a license under this section if the person handles only
9industrial hemp and holds a valid license under s. 94.55.
AB599-AA2,6,12 10(3) License criteria. The commission may issue a license to a producer,
11processor, dispensary, transporter, or laboratory if the commission determines that
12all of the following requirements are met:
AB599-AA2,6,2113 (a) Notwithstanding ss. 111.321, 111.322, and 111.335, the applicant, or each
14principal officer or board member of the applicant, has never been convicted of a
15criminal violation of the federal Controlled Substances Act under 21 USC 801 to 971,
16the Uniform Controlled Substances Act under ch. 961, or any controlled substances
17law of another state. The commission shall determine whether this requirement is
18met on the basis of a criminal history search obtained from the records maintained
19by the department of justice for each of these persons. The department of justice
20shall provide information to the commission necessary to determine whether this
21requirement is met.
AB599-AA2,6,2322 (b) The applicant, or each principal officer or board member of the applicant,
23is at least 21 years of age.
AB599-AA2,7,324 (c) For the 24 months following the first date on which the commission receives
25applications under this section, the applicant, or at least one principal officer or

1board member of the applicant, has resided in this state, in accordance with the
2qualifications set forth in s. 6.10, for at least one year before submitting an
3application to the commission under this subsection.
AB599-AA2,7,74 (d) 1. If the applicant is a producer or processor, the applicant, or each principal
5officer or board member of the applicant, does not have any financial interest in a
6licensed dispensary or laboratory or an applicant for a dispensary or laboratory
7license.
AB599-AA2,7,118 2. If the applicant is a laboratory, the applicant, or each principal officer or
9board member of the applicant, does not have any financial interest in a licensed
10producer, processor, or dispensary or an applicant for a producer, processor, or
11dispensary license.
AB599-AA2,7,1512 3. If the applicant is a dispensary, the applicant, or each principal officer or
13board member of the applicant, does not have any financial interest in a licensed
14producer, processor, or laboratory or an applicant for a producer, processor, or
15laboratory license.
AB599-AA2,7,1916 (e) The applicant and each principal officer or board member of the applicant
17have never had a license revoked and not reinstated under this section or been a
18principal officer or board member of an entity that has had a license revoked and not
19reinstated under this section.
AB599-AA2,7,2120 (f) The applicant's facility or the site of the applicant's facility is not prohibited
21by a local ordinance of the county or municipality where the facility would be located.
AB599-AA2,7,2322 (g) The applicant's operation is not or will not be located within 300 feet of the
23premises of a school or child care center.
AB599-AA2,7,2524 (h) The applicant has or will have sufficient security measures in place at its
25operating location.
AB599-AA2,8,1
1(i) The applicant has or will have sufficient record-keeping procedures in place.
AB599-AA2,8,32 (j) If the applicant is a laboratory, the applicant employs and retains at least
3one employee with an advanced degree in a medical or laboratory science.
AB599-AA2,8,64 (k) The applicant provides proof of financial responsibility equal to no less than
5$1,000,000 for liability for bodily injury that may result from producing, processing,
6transporting, or dispensing medical marijuana.
AB599-AA2,8,77 (L) The applicant has paid the fee specified under sub. (4).
AB599-AA2,8,98 (m) The applicant meets any other conditions for obtaining a license as
9required by the department of revenue by rule.
AB599-AA2,8,14 10(4) Application and annual renewal fees. (a) The commission shall set, by
11rule, the amount of application, registration, and renewal fees for applying for and
12receiving a license under this section, subject to the limitations under par. (b). The
13amount of the fees under this subsection shall be sufficient to cover the commission's
14costs of administering and enforcing this section.
AB599-AA2,8,1815 (b) 1. For a license under sub. (7) (d) 1. a., the application fee shall be no less
16than $1,000, but no more than $5,000; the registration fee shall be no less than
17$50,000, but no more than $100,000; and the renewal fee shall be no less than
18$50,000, but no more than $150,000.
AB599-AA2,8,2219 2. For a license under sub. (7) (d) 1. b., the application fee shall be no less than
20$10,000, but no more than $15,000; the registration fee shall be no less than
21$100,000, but no more than $150,000; and the renewal fee shall be no less than
22$100,000, but no more than $200,000.
AB599-AA2,9,223 3. For a license under sub. (7) (d) 1. c., the application fee shall be no less than
24$20,000, but no more than $25,000; the registration fee shall be no less than

1$150,000, but no more than $200,000; and the renewal fee shall be no less than
2$150,000, but no more than $250,000.
AB599-AA2,9,63 4. For a license under sub. (8), the application fee shall be no less than $1,000,
4but no more than $25,000; the registration fee shall be no less than $50,000, but no
5more than $200,000; and the renewal fee shall be no less than $50,000, but no more
6than $250,000.
AB599-AA2,9,107 5. For a license under sub. (9), the application fee shall be no less than $2,500,
8but no more than $7,500; the registration fee shall be no less than $6,000, but no more
9than $9,000; and the renewal fee shall be no less than $5,000, but no more than
10$45,000.
AB599-AA2,9,12 11(5) Employees. A licensee may not employ a person unless all of the following
12requirements are met:
AB599-AA2,9,1313 (a) The person is at least 21 years of age.
AB599-AA2,9,2014 (b) Notwithstanding ss. 111.321, 111.322, and 111.335, the person has never
15been convicted of a criminal violation of the federal Controlled Substances Act under
1621 USC 801 to 971, the Uniform Controlled Substances Act under ch. 961, or any
17controlled substances law of another state, based on a criminal history search
18obtained from the records maintained by the department of justice. The department
19of justice shall provide information to the commission necessary to determine
20whether this requirement is met.
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