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3 | 3 | | HB 493 2023 |
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9 | 9 | | Page 1 of 9 |
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10 | 10 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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13 | 13 | | |
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14 | 14 | | A bill to be entitled 1 |
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15 | 15 | | An act relating to applicants for licensure as a 2 |
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16 | 16 | | medical marijuana treatment center; amending s. 3 |
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17 | 17 | | 381.986, F.S.; authorizing a joint venture partner of 4 |
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18 | 18 | | specified applicants to be licensed as a medical 5 |
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19 | 19 | | marijuana treatment center and receive maximum points 6 |
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20 | 20 | | for its diversity plan; requiring the Department of 7 |
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21 | 21 | | Health to license specified applicants that are 8 |
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22 | 22 | | recognized class members of specified class actions; 9 |
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23 | 23 | | providing that the rights of such recognized class 10 |
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24 | 24 | | members inures to its successors or assignees; 11 |
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25 | 25 | | authorizing an applicant for licensure as a medical 12 |
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26 | 26 | | marijuana treatment center to demonstrate that such 13 |
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27 | 27 | | applicant has maintained a bona fide business in the 14 |
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28 | 28 | | agriculture industry for a certain amount of time 15 |
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29 | 29 | | before submitting the application; revising diversity 16 |
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30 | 30 | | plan requirements for applicants; providing an 17 |
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31 | 31 | | effective date. 18 |
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32 | 32 | | 19 |
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33 | 33 | | Be It Enacted by the Legislature of the State of Florida: 20 |
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34 | 34 | | 21 |
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35 | 35 | | Section 1. Paragraphs (a) and (b ) of subsection (8) of 22 |
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36 | 36 | | section 381.986, Florida Statutes, are amended to read: 23 |
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37 | 37 | | 381.986 Medical use of marijuana. — 24 |
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38 | 38 | | (8) MEDICAL MARIJUANA TREATMENT CENTERS. — 25 |
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39 | 39 | | |
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40 | 40 | | HB 493 2023 |
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46 | 46 | | Page 2 of 9 |
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47 | 47 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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51 | 51 | | (a) The department shall license medical marijuana 26 |
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52 | 52 | | treatment centers to ensure reasonable stat ewide accessibility 27 |
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53 | 53 | | and availability as necessary for qualified patients registered 28 |
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54 | 54 | | in the medical marijuana use registry and who are issued a 29 |
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55 | 55 | | physician certification under this section. 30 |
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56 | 56 | | 1. As soon as practicable, but no later than July 3, 2017, 31 |
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57 | 57 | | the department shall license as a medical marijuana treatment 32 |
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58 | 58 | | center any entity that holds an active, unrestricted license to 33 |
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59 | 59 | | cultivate, process, transport, and dispense low -THC cannabis, 34 |
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60 | 60 | | medical cannabis, and cannabis delivery devices, under former s. 35 |
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61 | 61 | | 381.986, Florida Statutes 2016, before July 1, 2017, and which 36 |
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62 | 62 | | meets the requirements of this section. In addition to the 37 |
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63 | 63 | | authority granted under this section, these entities are 38 |
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64 | 64 | | authorized to dispense low -THC cannabis, medical cannabis, and 39 |
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65 | 65 | | cannabis delivery devices ordered pursuant to former s. 381.986, 40 |
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66 | 66 | | Florida Statutes 2016, which were entered into the compassionate 41 |
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67 | 67 | | use registry before July 1, 2017, and are authorized to begin 42 |
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68 | 68 | | dispensing marijuana under this section on July 3, 2017. The 43 |
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69 | 69 | | department may grant varianc es from the representations made in 44 |
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70 | 70 | | such an entity's original application for approval under former 45 |
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71 | 71 | | s. 381.986, Florida Statutes 2014, pursuant to paragraph (e). 46 |
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72 | 72 | | 2. The department shall license as medical marijuana 47 |
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73 | 73 | | treatment centers 10 applicants that me et the requirements of 48 |
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74 | 74 | | this section, under the following parameters: 49 |
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75 | 75 | | a. As soon as practicable, but no later than August 1, 50 |
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76 | 76 | | |
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84 | 84 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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88 | 88 | | 2017, the department shall license any applicant whose 51 |
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89 | 89 | | application was reviewed, evaluated, and scored by the 52 |
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90 | 90 | | department and which was denied a dispensing organization 53 |
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91 | 91 | | license by the department under former s. 381.986, Florida 54 |
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92 | 92 | | Statutes 2014; which had one or more administrative or judicial 55 |
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93 | 93 | | challenges pending as of January 1, 2017, or had a final ranking 56 |
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94 | 94 | | within one point of the highes t final ranking in its region 57 |
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95 | 95 | | under former s. 381.986, Florida Statutes 2014; which meets the 58 |
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96 | 96 | | requirements of this section; and which provides documentation 59 |
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97 | 97 | | to the department that it has the existing infrastructure and 60 |
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98 | 98 | | technical and technological ability t o begin cultivating 61 |
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99 | 99 | | marijuana within 30 days after registration as a medical 62 |
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100 | 100 | | marijuana treatment center. 63 |
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101 | 101 | | b. As soon as practicable, the department shall license 64 |
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102 | 102 | | one applicant that is a recognized class member of Pigford v. 65 |
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103 | 103 | | Glickman, 185 F.R.D. 82 (D.D.C. 1999), or In Re Black Farmers 66 |
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104 | 104 | | Litig., 856 F. Supp. 2d 1 (D.D.C. 2011). An applicant licensed 67 |
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105 | 105 | | under this sub-subparagraph is exempt from the requirement of 68 |
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106 | 106 | | subparagraph (b)2. An applicant or a joint venture partner of 69 |
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107 | 107 | | such applicant that applies for licens ure under this sub-70 |
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108 | 108 | | subparagraph, pays its initial application fee, is determined by 71 |
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109 | 109 | | the department through the application process to qualify as a 72 |
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110 | 110 | | recognized class member, and is not awarded a license under this 73 |
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111 | 111 | | sub-subparagraph may transfer its initial ap plication fee to one 74 |
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112 | 112 | | subsequent opportunity to apply for licensure under subparagraph 75 |
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121 | 121 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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125 | 125 | | 4. and receive the maximum consideration for its diversity plan 76 |
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126 | 126 | | as described in subparagraph (b)10. 77 |
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127 | 127 | | c. As soon as practicable, but no later than August 1, 78 |
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128 | 128 | | 2023, the department shall license any applicant that is a 79 |
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129 | 129 | | recognized class member of Pigford v. Glickman, 185 F.R.D. 82 80 |
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130 | 130 | | (D.D.C. 1999) or In Re Black Farmers Litig., 856 F. Supp. 2d 1 81 |
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131 | 131 | | (D.D.C. 2011) whose application was reviewed, evaluated, and 82 |
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132 | 132 | | scored by the department and was denied a dispensing 83 |
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133 | 133 | | organization license by the department under former s. 381.986, 84 |
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134 | 134 | | Florida Statutes 2014; had one or more administrative or 85 |
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135 | 135 | | judicial challenges pending as of October 11, 2022, or had a 86 |
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136 | 136 | | final ranking within one point of the highest final ranking in 87 |
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137 | 137 | | its region under former s. 381.986, Florida Statutes 2014; meets 88 |
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138 | 138 | | the requirements of this section; provides documentation to the 89 |
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139 | 139 | | department that he or she is a recognized class member of 90 |
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140 | 140 | | Pigford v. Glickman, 185 F.R.D. 82 (D.D.C. 1999) or In Re Black 91 |
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141 | 141 | | Farmers Litig., 856 F. Supp. 2d 1 (D.D.C. 2011) at the time of 92 |
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142 | 142 | | the application; and provides documentation to the department 93 |
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143 | 143 | | that it has the existing infrastructure and technical and 94 |
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144 | 144 | | technological ability to begin cultivating marijuana within 30 95 |
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145 | 145 | | days after registration as a medical marijuana treatment center. 96 |
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146 | 146 | | The rights of the recognized class member under this sub -97 |
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147 | 147 | | subparagraph inures to its successors or assignees. 98 |
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148 | 148 | | d.c. As soon as practicable, but no later than October 3, 99 |
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149 | 149 | | 2017, the department shall license applicants that meet the 100 |
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158 | 158 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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162 | 162 | | requirements of this section in sufficient numbers to result in 101 |
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163 | 163 | | 10 total licenses issued under this subparagraph, while 102 |
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164 | 164 | | accounting for the number of licenses issued under sub -103 |
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165 | 165 | | subparagraphs a. and b. 104 |
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166 | 166 | | 3. For up to two of the licenses issued under subparagraph 105 |
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167 | 167 | | 2., the department shall give preference to applicants that 106 |
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168 | 168 | | demonstrate in the their applications ownership of that they own 107 |
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169 | 169 | | one or more facilities that are, or were, used for the canning, 108 |
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170 | 170 | | concentrating, or othe rwise processing of citrus fruit or citrus 109 |
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171 | 171 | | molasses and that will be used use or converted convert the 110 |
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172 | 172 | | facility or facilities for the processing of marijuana. 111 |
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173 | 173 | | 4. Within 6 months after the registration of 100,000 112 |
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174 | 174 | | active qualified patients in the medical m arijuana use registry, 113 |
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175 | 175 | | the department shall license four additional medical marijuana 114 |
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176 | 176 | | treatment centers that meet the requirements of this section. 115 |
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177 | 177 | | Thereafter, the department shall license four medical marijuana 116 |
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178 | 178 | | treatment centers within 6 months after the registration of each 117 |
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179 | 179 | | additional 100,000 active qualified patients in the medical 118 |
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180 | 180 | | marijuana use registry that meet the requirements of this 119 |
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181 | 181 | | section. 120 |
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182 | 182 | | (b) An applicant for licensure as a medical marijuana 121 |
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183 | 183 | | treatment center shall apply to the department on a form 122 |
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184 | 184 | | prescribed by the department and adopted in rule. The department 123 |
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185 | 185 | | shall adopt rules pursuant to ss. 120.536(1) and 120.54 124 |
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186 | 186 | | establishing a procedure for the issuance and biennial renewal 125 |
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195 | 195 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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199 | 199 | | of licenses, including initial application and biennial renewal 126 |
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200 | 200 | | fees sufficient to cover the costs of implementing and 127 |
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201 | 201 | | administering this section, and establishing supplemental 128 |
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202 | 202 | | licensure fees for payment beginning May 1, 2018, sufficient to 129 |
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203 | 203 | | cover the costs of administering ss. 381.989 and 1004.4351. The 130 |
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204 | 204 | | department shall identify applicants with strong diversity plans 131 |
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205 | 205 | | reflecting this state's commitment to diversity and implement 132 |
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206 | 206 | | training programs and other educational programs to enable 133 |
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207 | 207 | | minority persons and minority business enterprises, as defined 134 |
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208 | 208 | | in s. 288.703, and vetera n business enterprises, as defined in 135 |
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209 | 209 | | s. 295.187, to compete for medical marijuana treatment center 136 |
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210 | 210 | | licensure and contracts. Subject to the requirements in 137 |
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211 | 211 | | subparagraphs (a)2.-4., the department shall issue a license to 138 |
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212 | 212 | | an applicant if the applicant meets the requirements of this 139 |
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213 | 213 | | section and pays the initial application fee. The department 140 |
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214 | 214 | | shall renew the licensure of a medical marijuana treatment 141 |
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215 | 215 | | center biennially if the licensee meets the requirements of this 142 |
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216 | 216 | | section and pays the biennial renewal fee. How ever, the 143 |
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217 | 217 | | department may not renew the license of a medical marijuana 144 |
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218 | 218 | | treatment center that has not begun to cultivate, process, and 145 |
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219 | 219 | | dispense marijuana by the date that the medical marijuana 146 |
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220 | 220 | | treatment center is required to renew its license. An individual 147 |
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221 | 221 | | may not be an applicant, owner, officer, board member, or 148 |
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222 | 222 | | manager on more than one application for licensure as a medical 149 |
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223 | 223 | | marijuana treatment center. An individual or entity may not be 150 |
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232 | 232 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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236 | 236 | | awarded more than one license as a medical marijuana treatment 151 |
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237 | 237 | | center. An applicant for licensure as a medical marijuana 152 |
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238 | 238 | | treatment center must demonstrate: 153 |
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239 | 239 | | 1. That, for the 5 consecutive years before submitting the 154 |
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240 | 240 | | application, the applicant has been registered to do business in 155 |
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241 | 241 | | the state or has maintained a bona fide business in the 156 |
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242 | 242 | | agriculture industry in the state . 157 |
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243 | 243 | | 2. Possession of a valid certificate of registration 158 |
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244 | 244 | | issued by the Department of Agriculture and Consumer Services 159 |
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245 | 245 | | pursuant to s. 581.131. 160 |
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246 | 246 | | 3. The technical and technological ability to cultivate 161 |
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247 | 247 | | and produce marijuana, including, but not limited to, low -THC 162 |
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248 | 248 | | cannabis. 163 |
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249 | 249 | | 4. The ability to secure the premises, resources, and 164 |
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250 | 250 | | personnel necessary to operate as a medical marijuana treatment 165 |
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251 | 251 | | center. 166 |
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252 | 252 | | 5. The ability to maintain accountability of all raw 167 |
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253 | 253 | | materials, finished products, and any byproducts to prevent 168 |
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254 | 254 | | diversion or unlawful access to or possession of these 169 |
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255 | 255 | | substances. 170 |
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256 | 256 | | 6. An infrastructure reasonably located to dispense 171 |
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257 | 257 | | marijuana to registered qualified patients statewide or 172 |
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258 | 258 | | regionally as determined b y the department. 173 |
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259 | 259 | | 7. The financial ability to maintain operations for the 174 |
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260 | 260 | | duration of the 2-year approval cycle, including the provision 175 |
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269 | 269 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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273 | 273 | | of certified financial statements to the department. 176 |
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274 | 274 | | a. Upon approval, the applicant must post a $5 million 177 |
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275 | 275 | | performance bond issued by an authorized surety insurance 178 |
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276 | 276 | | company rated in one of the three highest rating categories by a 179 |
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277 | 277 | | nationally recognized rating service. However, a medical 180 |
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278 | 278 | | marijuana treatment center serving at least 1,000 qualified 181 |
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279 | 279 | | patients is only requir ed to maintain a $2 million performance 182 |
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280 | 280 | | bond. 183 |
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281 | 281 | | b. In lieu of the performance bond required under sub -184 |
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282 | 282 | | subparagraph a., the applicant may provide an irrevocable letter 185 |
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283 | 283 | | of credit payable to the department or provide cash to the 186 |
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284 | 284 | | department. If provided with c ash under this sub-subparagraph, 187 |
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285 | 285 | | the department shall deposit the cash in the Grants and 188 |
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286 | 286 | | Donations Trust Fund within the Department of Health, subject to 189 |
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287 | 287 | | the same conditions as the bond regarding requirements for the 190 |
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288 | 288 | | applicant to forfeit ownership of the f unds. If the funds 191 |
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289 | 289 | | deposited under this sub -subparagraph generate interest, the 192 |
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290 | 290 | | amount of that interest shall be used by the department for the 193 |
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291 | 291 | | administration of this section. 194 |
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292 | 292 | | 8. That all owners, officers, board members, and managers 195 |
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293 | 293 | | have passed a backgr ound screening pursuant to subsection (9). 196 |
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294 | 294 | | 9. The employment of a medical director to supervise the 197 |
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295 | 295 | | activities of the medical marijuana treatment center. 198 |
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296 | 296 | | 10. A diversity plan that promotes and ensures the 199 |
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297 | 297 | | involvement of minority persons and minority bu siness 200 |
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306 | 306 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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310 | 310 | | enterprises, as defined in s. 288.703, or veteran business 201 |
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311 | 311 | | enterprises, as defined in s. 295.187, in ownership, management, 202 |
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312 | 312 | | and employment. Any applicant that is a recognized class member 203 |
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313 | 313 | | of Pigford v. Glickman, 185 F.R.D. 82 (D.D.C. 1999) or In Re 204 |
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314 | 314 | | Black Farmers Litig., 856 F. Supp. 2d 1 (D.D.C. 2011) satisfies 205 |
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315 | 315 | | the diversity plan requirement and shall receive the maximum 206 |
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316 | 316 | | consideration on the application for administration of this 207 |
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317 | 317 | | section. Any applicant that applies as a joint venture partner 208 |
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318 | 318 | | with a recognized class member shall also receive the maximum 209 |
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319 | 319 | | consideration on the application for administration of this 210 |
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320 | 320 | | section. An applicant for licensure renewal must show the 211 |
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321 | 321 | | effectiveness of the diversity plan by including the following 212 |
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322 | 322 | | with his or her appli cation for renewal: 213 |
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323 | 323 | | a. Representation of minority persons and veterans in the 214 |
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324 | 324 | | medical marijuana treatment center's workforce; 215 |
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325 | 325 | | b. Efforts to recruit minority persons and veterans for 216 |
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326 | 326 | | employment; and 217 |
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327 | 327 | | c. A record of contracts for services with minority 218 |
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328 | 328 | | business enterprises and veteran business enterprises. 219 |
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329 | 329 | | Section 2. This act shall take effect July 1, 2023. 220 |
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