AB599-AA1,10,14 (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.

AB599-AA1,10,16 (b) A licensed producer may not plant, grow, cultivate, or harvest medical cannabis for personal, family, or household use.

AB599-AA1,10,24 (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.

AB599-AA1,11,7 (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.

AB599-AA1,11,12 (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.

AB599-AA1,11,14 (b) A licensed dispensary may dispense medical cannabis only to a person who presents a valid registry identification card.

AB599-AA1,11,16 (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:

AB599-AA1,11,17 1. Convenience to treatment teams and the preferences of treatment teams.

AB599-AA1,11,19 2. The ability of the applicant to provide to treatment teams a sufficient amount of medical cannabis.

AB599-AA1,11,21 3. The experience the applicant has running a nonprofit organization or a business.

AB599-AA1,11,23 4. The preferences of the governing bodies with jurisdiction over the area in which the applicants are located.

AB599-AA1,11,25 5. The ability of the applicant to keep records confidential and maintain a safe and secure facility.

AB599-AA1,12,1 6. The ability of the applicant to abide by the prohibitions under sub. (3) (b).

AB599-AA1,12,10 (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:

AB599-AA1,12,12 (a) Testing medical cannabis for potency and for mold, fungus, pesticides, and other contaminants.

AB599-AA1,12,14 (b) Researching findings related to medical cannabis, including findings that identify potentially unsafe levels of contaminants.

AB599-AA1,12,16 (c) Providing training to persons who hold registry identification cards, treatment teams, and persons employed by licensees on all of the following:

AB599-AA1,12,18 1. The safe and efficient cultivation, harvesting, packaging, labeling, and distribution of medical cannabis.

AB599-AA1,12,19 2. Security and inventory accountability procedures.

AB599-AA1,12,20 3. The most recent research on medical cannabis.

AB599-AA1,12,24 (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).

AB599-AA1,13,3 (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.

AB599-AA1,13,7 (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.

AB599-AA1,13,20 (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.

AB599-AA1,18 Section 18. 101.123 (1) (h) (intro.) of the statutes is amended to read:

AB599-AA1,13,23 101.123 (1) (h) (intro.) “Smoking" means burning or holding, or inhaling or exhaling smoke from, any of the following items containing tobacco or cannabis:

AB599-AA1,19 Section 19. 102.43 (9) (e) of the statutes is amended to read:

AB599-AA1,14,4 102.43 (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).

AB599-AA1,20 Section 20. 106.50 (1m) (h) of the statutes is amended to read: