SB1035: Bill Text

SB1035,16 Section 16 . 77.54 (70) of the statutes is created to read:

SB1035,10,6 77.54 (70) The sales price from the sales of and the storage, use, or other consumption of medical cannabis and drug paraphernalia delivered or distributed by a dispensary licensed under s. 94.57.

SB1035,17 Section 17 . 94.57 of the statutes is created to read:

SB1035,10,8 94.57 Medical cannabis. (1) Definitions. In this section:

SB1035,10,13 (b) “Dispensary” means a person who obtains packaged and labeled medical cannabis from a licensed processor and dispenses that cannabis, and cannabis paraphernalia, at a permanent location to a member of a treatment team holding a valid registry identification card, regardless of whether the dispensing is done in exchange for monetary consideration.

SB1035,10,16 (c) “Laboratory” means a person who obtains medical cannabis from a licensed processor and tests that cannabis for tetrahydrocannabinol content and the presence of molds, pesticides, heavy metals, and other contaminants.

SB1035,10,18 (d) “Licensee” means a producer, processor, or dispensary that holds a valid license under this section.

SB1035,10,19 (e) “Maximum authorized amount" has the meaning given in s. 961.01 (14c).

SB1035,10,22 (f) “Medical cannabis" means a cannabis plant or usable cannabis that is intended to be used by a qualifying patient registered under s. 146.44 to alleviate the symptoms or effects of the patient's debilitating medical condition or treatment.

SB1035,11,2 (g) “Processor" means a person who obtains medical cannabis from a licensed producer, processes the medical cannabis into usable cannabis or individual cannabis plants, packages and labels the usable cannabis or cannabis plants, and transfers or sells the packaged and labeled usable cannabis or cannabis plants to a licensed dispensary.

SB1035,11,5 (h) “Producer” means a person who plants, grows, cultivates, or harvests more than 12 cannabis plants for medical cannabis and transfers or sells the medical cannabis to a licensed processor.

SB1035,11,6 (i) “Qualifying patient" has the meaning given in s. 146.44 (1) (e).

SB1035,11,7 (j) “Registry identification card" has the meaning given in s. 146.44 (1) (g).

SB1035,11,8 (k) “School” has the meaning given in s. 118.257 (1) (d).

SB1035,11,9 (L) “Treatment team" has the meaning given in s. 961.01 (20t).

SB1035,11,10 (m) “Usable cannabis” has the meaning given in s. 961.01 (21f).

SB1035,11,19 (2) License required. No person may operate in this state as a producer, processor, or dispensary without a license issued by the department under this section. A person who engages in more than one of these activities shall obtain a separate license for each activity. A licensee may engage in the licensed activity at more than one location without obtaining a separate license. No licensee may operate at more than 2 separate locations, regardless of the number of licenses held. A person who is an employee of a licensee is not required to obtain a separate license. 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.

SB1035,11,22 (3) License criteria. (a) The department may issue a license under this section to an applicant only if the applicant has been a resident of this state for at least the 2 years immediately preceding the date of application.

SB1035,11,24 (b) The department may not issue a license to, and must revoke a license of, any entity to which any of the following applies:

SB1035,11,25 1. The entity is located within 500 feet of a school, including a charter school.

SB1035,12,4 2. If the entity is a dispensary, the dispensary distributes to a member of a treatment team a number of cannabis plants or an amount of usable cannabis that, in the period of distribution, results in the treatment team possessing more than the maximum authorized amount.

SB1035,12,8 3. The dispensary possesses a number of cannabis plants or an amount of usable cannabis that exceeds the combined maximum authorized amount for all of the treatment teams that use the dispensary by a number or an amount determined by the department by rule to be unacceptable.

SB1035,12,10 4. The applicant, or a principal officer or board member of the applicant, has a financial interest in a registered laboratory.

SB1035,12,13 (4) Licensing procedure; fees; license term. (a) An application for a license under this section shall be in writing on a form provided by the department and include the licensing application fee under par. (b) 1.

SB1035,12,15 (b) 1. A licensing application fee shall be an amount determined by the department but not less than $250.

SB1035,12,17 2. The annual fee for a licensee shall be an amount determined by the department but not less than $5,000.

SB1035,12,19 (c) A license is valid unless revoked. Each license shall be issued only for the applicant named in the application and may not be transferred or assigned.

SB1035,12,24 (5) Producers. (a) A licensed producer may plant, grow, cultivate, and harvest medical cannabis, including planting, growing, cultivating, and harvesting outdoors; transfer or sell the medical cannabis to a licensed processor; and engage in any related activities that are necessary for the operation, such as possessing, storing, and transporting the medical cannabis.

SB1035,13,2 (b) A licensed producer may not plant, grow, cultivate, or harvest medical cannabis for personal, family, or household use.

SB1035,13,10 (6) Processors. (a) A licensed processor may obtain medical cannabis from a licensed producer; process the medical cannabis into usable cannabis or individual cannabis plants; transfer samples of the usable cannabis or individual cannabis plants to a registered laboratory; package and label the usable cannabis or individual cannabis plants; transfer or sell the usable cannabis or individual cannabis plants to a licensed dispensary; and engage in any related activities that are necessary for the operation, such as possessing, storing, and transporting the usable cannabis or individual cannabis plants.

SB1035,13,17 (b) Before distributing medical cannabis to a licensed dispensary, a licensed processor shall provide samples of each type of cannabis plant and usable cannabis that it processes to a registered laboratory to test for mold, fungus, pesticides, and other contaminants and may not distribute medical cannabis that tests positive for mold, fungus, pesticides, or other contaminants if the contaminants or the level of contaminants is identified by the laboratory as being potentially unsafe to an individual's health.

SB1035,13,22 (7) Dispensaries. (a) A licensed dispensary may obtain packaged, labeled medical cannabis from a licensed processor; dispense the medical cannabis according to the provisions of this section; and engage in any related activities that are necessary for the operation, such as possessing, storing, and transporting the medical cannabis.

SB1035,13,24 (b) A licensed dispensary may dispense medical cannabis only to a person who presents a valid registry identification card.

SB1035,14,2 (c) The department shall determine which and how many applicants for a dispensary license receive a license on the basis of all of the following:

SB1035,14,3 1. Convenience to treatment teams and the preferences of treatment teams.

SB1035,14,5 2. The ability of the applicant to provide to treatment teams a sufficient amount of medical cannabis.

SB1035,14,7 3. The experience the applicant has running a nonprofit organization or a business.

SB1035,14,9 4. The preferences of the governing bodies with jurisdiction over the area in which the applicants are located.

SB1035,14,11 5. The ability of the applicant to keep records confidential and maintain a safe and secure facility.

SB1035,14,12 6. The ability of the applicant to abide by the prohibitions under sub. (3) (b).

SB1035,14,21 (8) Laboratories. The department shall register entities as medical cannabis testing laboratories. The department may not register a laboratory if any principal officer or board member of the entity has any financial interest in a licensee or an applicant for a license under this section. A registered laboratory may obtain samples of medical cannabis from a licensed processor; test and certify the tetrahydrocannabinol content of the medical cannabis and whether the medical cannabis contains any contaminants; and engage in any related activities that are necessary for the operation, such as possessing, storing, and transporting the medical cannabis. Registered laboratories shall perform the following services:

SB1035,14,23 (a) Testing medical cannabis for potency and for mold, fungus, pesticides, and other contaminants.

SB1035,14,25 (b) Researching findings related to medical cannabis, including findings that identify potentially unsafe levels of contaminants.

SB1035,15,2 (c) Providing training to persons who hold registry identification cards, treatment teams, and persons employed by licensees on all of the following:

SB1035,15,4 1. The safe and efficient cultivation, harvesting, packaging, labeling, and distribution of medical cannabis.

SB1035,15,5 2. Security and inventory accountability procedures.

SB1035,15,6 3. The most recent research on medical cannabis.

SB1035,15,10 (9) Confidentiality. The department may disclose to a law enforcement agency only information necessary to verify that a licensee has a valid license issued under this section, an entity is complying with rules promulgated under sub. (11), or a laboratory is registered under sub. (8).

SB1035,15,13 (10) Inspections. The department may inspect, without prior notice, the premises of an applicant, licensee, or registered laboratory and any records required to be retained by a licensee or registered laboratory.

SB1035,15,17 (11) Rules. (a) The department shall promulgate rules to administer and enforce this section. Rules promulgated under this subsection shall be designed to promote and prioritize producers, processors, and dispensaries that are small, local organizations.

SB1035,16,5 (b) When promulgating rules under this subsection, the department may, as necessary, use the procedure under s. 227.24 to promulgate emergency rules. Notwithstanding s. 227.24 (1) (a) and (3), when promulgating emergency rules under this subsection, the department is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection. Notwithstanding s. 227.24 (1) (c) and (2), initial emergency rules and subsequent emergency rules promulgated under this subsection remain in effect until the date on which permanent rules take effect. Notwithstanding s. 227.24 (1) (e) 1d. and 1g., for emergency rules promulgated under this subsection, the department is not required to prepare a statement of scope of the rules or to submit the proposed rules in final draft form to the governor for approval.

SB1035,18 Section 18 . 101.123 (1) (h) (intro.) of the statutes is amended to read:

SB1035,16,8 101.123 (1) (h) (intro.) “Smoking" means burning or holding, or inhaling or exhaling smoke from, any of the following items containing tobacco or cannabis:

SB1035,19 Section 19 . 102.43 (9) (e) of the statutes is amended to read:

SB1035,16,13 102.43 (9) (e) The employee's employment with the employer has been suspended or terminated due to misconduct, as defined in s. 108.04 (5), or substantial fault, as defined in s. 108.04 (5g) (a), by the employee connected with the employee's work, subject to s. 108.04 (5m).

SB1035,20 Section 20 . 106.50 (1m) (h) of the statutes is amended to read:

SB1035,16,22 106.50 (1m) (h) “Discriminate" means to segregate, separate, exclude, or treat a person or class of persons unequally in a manner described in sub. (2), (2m), or (2r) because of sex, race, color, sexual orientation, disability, religion, national origin, marital status, or family status, ; status as a victim of domestic abuse, sexual assault, or stalking,; whether the person holds, or has applied for, a registry identification card, as defined in s. 146.44 (1) (g), has been the subject of a written certification, as defined in s. 146.44 (1) (h), or is or has been a member of a treatment team, as defined in s. 961.01 (20t); lawful source of income,; age,; or ancestry.

SB1035,21 Section 21 . 108.04 (5m) of the statutes is created to read:

SB1035,16,24 108.04 (5m) Use of medical cannabis. (a) In this subsection:

SB1035,16,25 1. “Medical cannabis” has the meaning given in s. 94.57 (1) (f).

SB1035,17,1 2. “Registry identification card” has the meaning given in s. 146.44 (1) (g).

SB1035,17,2 3. “Written certification” has the meaning given in s. 146.44 (1) (h).

SB1035,17,4 (b) Notwithstanding sub. (5), “misconduct," for purposes of sub. (5), does not include any of the following:

SB1035,17,8 1. A positive test for cannabis components or metabolites, in the absence of other actions or conduct that constitutes misconduct under sub. (5). This subdivision applies only with respect to an employee with a valid written certification and a valid registry identification card.

SB1035,17,10 2. A violation of the employer's policy concerning the use of cannabis, if all of the following apply:

SB1035,17,12 a. The employee was using medical cannabis in accordance with a valid written certification.

SB1035,17,13 b. The employee held a valid registry identification card.

SB1035,17,15 c. The employee did not use or possess medical cannabis on the employer's premises or during working hours.

SB1035,17,17 d. The use did not impair the individual's ability to adequately perform the job-related responsibilities of that individual's employment.

SB1035,17,19 (c) Notwithstanding sub. (5g), “substantial fault," for purposes of sub. (5g), does not include any of the following:

SB1035,17,23 1. A positive test for cannabis components or metabolites, in the absence of other acts or omissions that constitute substantial fault under sub. (5). This subdivision applies only with respect to an employee with a valid written certification and a valid registry identification card.

SB1035,17,25 2. A violation of the employer's policy concerning the use of cannabis, if all of the following apply:

SB1035,18,2 a. The employee was using medical cannabis in accordance with a valid written certification.

SB1035,18,3 b. The employee held a valid registry identification card.

SB1035,18,5 c. The employee did not use or possess medical cannabis on the employer's premises or during working hours.

SB1035,18,7 d. The use did not impair the individual's ability to adequately perform the job-related responsibilities of that individual's employment.

SB1035,22 Section 22 . 111.32 (15) of the statutes is created to read:

SB1035,18,14 111.32 (15) “Use of a lawful product off the employer's premises during nonworking hours” includes the use of medical cannabis, as defined in s. 94.57 (1) (f), off the employer's premises during nonworking hours but only if such use is in accordance with a valid written certification, as defined in s. 146.44 (1) (h), and the use is by an individual who holds a valid registry identification card, as defined in s. 146.44 (1) (g).

SB1035,23 Section 23 . 111.34 (1) (c) of the statutes is created to read:

SB1035,18,22 111.34 (1) (c) 1. Except as provided in subd. 2., refusing to hire or employ, barring, suspending, or terminating an individual, or discriminating against an individual in promotion, in compensation, or in terms, conditions, or privileges of employment, based on the individual's use of medical cannabis, as defined in s. 94.57 (1) (f), if such use is in accordance with a valid written certification, as defined in s. 146.44 (1) (h), and the individual holds a valid registry identification card, as defined in s. 146.44 (1) (g).

SB1035,18,23 2. Subdivision 1. does not apply if any of the following applies:

SB1035,18,25 a. The employee uses or possesses medical cannabis on the employer's premises or during working hours.

SB1035,19,2 b. The use impairs the individual's ability to undertake adequately the job-related responsibilities of that individual's employment.

SB1035,19,5 c. The refusal, bar, suspension, termination, or discrimination is necessary for the employer to avoid losing a monetary or licensing-related benefit under federal law or regulations.

SB1035,24 Section 24 . 111.35 (2) (e) of the statutes is amended to read:

SB1035,19,10 111.35 (2) (e) Conflicts with any federal or state statute, rule or regulation. This paragraph does not apply with respect to any conflict between the use of medical cannabis described in s. 111.32 (15) and violations concerning marijuana or tetrahydrocannabinols under 21 USC 841 to 865.

SB1035,25 Section 25 . 111.35 (2) (f) of the statutes is created to read:

SB1035,19,14 111.35 (2) (f) In the case of use of medical cannabis described in s. 111.32 (15), would result in the employer losing a monetary or licensing-related benefit under federal law or regulations.

SB1035,26 Section 26 . 146.44 of the statutes is created to read: