Amendment AA2-AB599

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.

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.