Florida Senate - 2015                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 7066
       
       
       
       
       
       
                                Ì207994UÎ207994                         
       
                              LEGISLATIVE ACTION                        
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       Senator Soto moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 381.986, Florida Statutes, is amended to
    6  read:
    7         381.986 Compassionate use of low-THC cannabis.—
    8         (1) DEFINITIONS.—As used in this section, the term:
    9         (a) “Applicant” means a person that has submitted an
   10  application to the department for licensure or renewal as a
   11  dispensing organization.
   12         (b) “Batch” means a specific quantity of cannabis product
   13  that is intended to have uniform character and quality, within
   14  specified limits, and is produced at the same time from one or
   15  more harvests.
   16         (e) “Dispensing organization” means an applicant licensed
   17  organization approved by the department to cultivate, process,
   18  and dispense low-THC cannabis pursuant to this section.
   19         (c)(b) “Low-THC Cannabis” means a plant of the genus
   20  Cannabis, the dried flowers of which contain 0.8 percent or less
   21  of tetrahydrocannabinol and more than 10 percent of cannabidiol
   22  weight for weight; the seeds thereof; the resin extracted from
   23  any part of such plant; or any compound, manufacture, salt,
   24  derivative, mixture, or preparation of such plant or its seeds
   25  or resin that is dispensed only from a dispensing organization.
   26         (d) Cannabis product” means any product derived from
   27  cannabis, including the resin extracted from any part of such
   28  plant or any compound, manufacture, salt, derivative, mixture,
   29  or preparation of such plant or its seeds or resin which is
   30  dispensed from a dispensing organization. Cannabis products
   31  include, but are not limited to, oils, tinctures, creams,
   32  encapsulations, and food products. Cannabis food products may
   33  not include candy or similar confectionary products that appeal
   34  to children. All cannabis products must maintain concentrations,
   35  weight for weight, of more than 10 percent of cannabidiol.
   36         (f) “Harvest” means a specifically identified and numbered
   37  quantity of cannabis cultivated using the same herbicides,
   38  pesticides, and fungicides and harvested at the same time from a
   39  single facility.
   40         (g) “Independent testing laboratory” means a laboratory,
   41  and the managers, employees, or contractors of the laboratory,
   42  which have no direct or indirect interest in a dispensing
   43  organization.
   44         (h)(c) “Medical use” means administration of the ordered
   45  amount of low-THC cannabis. The term does not include:
   46         1. The possession, use, or administration by smoking.
   47         2.The term also does not include The transfer of low-THC
   48  cannabis to a person other than the qualified patient for whom
   49  it was ordered or the qualified patient’s legal representative
   50  who is registered in the compassionate use registry on behalf of
   51  the qualified patient.
   52         3. The use or administration of cannabis or cannabis
   53  products:
   54         a. On any form of public transportation.
   55         b. In any public place.
   56         c. In a registered qualified patient’s place of work, if
   57  restricted by his or her employer.
   58         d. In a correctional facility.
   59         e. On the grounds of any preschool, primary school, or
   60  secondary school.
   61         f. On a school bus.
   62         (i)(d) “Qualified patient” means a resident of this state
   63  who has been added to the compassionate use registry by a
   64  physician licensed under chapter 458 or chapter 459 to receive
   65  low-THC cannabis from a dispensing organization.
   66         (j)(e) “Smoking” means burning or igniting a substance and
   67  inhaling the smoke. Smoking does not include the use of a
   68  vaporizer.
   69         (2) PHYSICIAN ORDERING.—
   70         (a)Effective January 1, 2015, A physician licensed under
   71  chapter 458 or chapter 459 who has examined and is treating a
   72  patient suffering from cancer, human immunodeficiency virus,
   73  acquired immune deficiency syndrome, epilepsy, amyotrophic
   74  lateral sclerosis, autism, multiple sclerosis, Crohn’s disease,
   75  Parkinson’s disease, paraplegia, quadriplegia, or terminal
   76  illness a physical medical condition that chronically produces
   77  symptoms of seizures or severe and persistent muscle spasms may
   78  order for the patient’s medical use low-THC cannabis to treat
   79  such disease, disorder, or condition; or to alleviate symptoms
   80  of such disease, disorder, or condition; or to alleviate
   81  symptoms caused by a treatment for such disease, disorder, or
   82  condition, if no other satisfactory alternative treatment
   83  options exist for that patient and all of the following
   84  conditions apply:
   85         1.(a) The patient is a permanent resident of this state.
   86         2.(b) The physician determines that the risks of ordering
   87  low-THC cannabis are reasonable in light of the potential
   88  benefit for that patient. If a patient is younger than 18 years
   89  of age, a second physician must concur with this determination,
   90  and such determination must be documented in the patient’s
   91  medical record.
   92         3.(c) The physician registers the patient, the patient’s
   93  legal representative if requested by the patient, and himself or
   94  herself as the orderer of low-THC cannabis for the named patient
   95  on the compassionate use registry maintained by the department
   96  and updates the registry to reflect the contents of the order.
   97  If the patient is a minor, the physician must register a legal
   98  representative on the compassionate use registry. The physician
   99  shall deactivate the patient’s registration when treatment is
  100  discontinued.
  101         4.(d) The physician maintains a patient treatment plan that
  102  includes the dose, route of administration, planned duration,
  103  and monitoring of the patient’s symptoms and other indicators of
  104  tolerance or reaction to the low-THC cannabis.
  105         5.(e) The physician submits the patient treatment plan, as
  106  well as any other requested medical records, quarterly to the
  107  University of Florida College of Pharmacy for research on the
  108  safety and efficacy of low-THC cannabis on patients pursuant to
  109  subsection (8).
  110         6.(f) The physician obtains the voluntary informed consent
  111  of the patient or the patient’s legal guardian to treatment with
  112  low-THC cannabis after sufficiently explaining the current state
  113  of knowledge in the medical community of the effectiveness of
  114  treatment of the patient’s conditions or symptoms condition with
  115  low-THC cannabis, the medically acceptable alternatives, and the
  116  potential risks and side effects.
  117         (b)A physician who improperly orders cannabis is subject
  118  to disciplinary action under the applicable practice act and
  119  under s. 456.072(1)(k).
  120         (3) PENALTIES.—
  121         (a) A physician commits a misdemeanor of the first degree,
  122  punishable as provided in s. 775.082 or s. 775.083, if the
  123  physician orders low-THC cannabis for a patient without a
  124  reasonable belief that the patient is suffering from at least
  125  one of the conditions listed in subsection (2).:
  126         1. Cancer or a physical medical condition that chronically
  127  produces symptoms of seizures or severe and persistent muscle
  128  spasms that can be treated with low-THC cannabis; or
  129         2. Symptoms of cancer or a physical medical condition that
  130  chronically produces symptoms of seizures or severe and
  131  persistent muscle spasms that can be alleviated with low-THC
  132  cannabis.
  133         (b) Any person who fraudulently represents that he or she
  134  has at least one condition listed in subsection (2) cancer or a
  135  physical medical condition that chronically produces symptoms of
  136  seizures or severe and persistent muscle spasms to a physician
  137  for the purpose of being ordered low-THC cannabis by such
  138  physician commits a misdemeanor of the first degree, punishable
  139  as provided in s. 775.082 or s. 775.083.
  140         (4) PHYSICIAN EDUCATION.—
  141         (a) Before ordering low-THC cannabis for use by a patient
  142  in this state, the appropriate board shall require the ordering
  143  physician licensed under chapter 458 or chapter 459 to
  144  successfully complete an 8-hour course and subsequent
  145  examination offered by the Florida Medical Association or the
  146  Florida Osteopathic Medical Association that encompasses the
  147  clinical indications for the appropriate use of low-THC
  148  cannabis, the appropriate delivery mechanisms, the
  149  contraindications for such use, as well as the relevant state
  150  and federal laws governing the ordering, dispensing, and
  151  possessing of this substance. The first course and examination
  152  shall be presented by October 1, 2014, and shall be administered
  153  at least annually thereafter. Successful completion of the
  154  course may be used by a physician to satisfy 8 hours of the
  155  continuing medical education requirements required by his or her
  156  respective board for licensure renewal. This course may be
  157  offered in a distance learning format.
  158         (b) The appropriate board shall require the medical
  159  director of each dispensing organization approved under
  160  subsection (5) to successfully complete a 2-hour course and
  161  subsequent examination offered by the Florida Medical
  162  Association or the Florida Osteopathic Medical Association that
  163  encompasses appropriate safety procedures and knowledge of low
  164  THC cannabis.
  165         (c) Successful completion of the course and examination
  166  specified in paragraph (a) is required for every physician who
  167  orders low-THC cannabis each time such physician renews his or
  168  her license. In addition, successful completion of the course
  169  and examination specified in paragraph (b) is required for the
  170  medical director of each dispensing organization each time such
  171  physician renews his or her license.
  172         (d) A physician who fails to comply with this subsection
  173  and who orders low-THC cannabis may be subject to disciplinary
  174  action under the applicable practice act and under s.
  175  456.072(1)(k).
  176         (5) DUTIES AND POWERS OF THE DEPARTMENT.—By January 1,
  177  2015, The department shall:
  178         (a) The department shall create a secure, electronic, and
  179  online compassionate use registry for the registration of
  180  physicians and patients as provided under this section. The
  181  registry must be accessible to law enforcement agencies and to a
  182  dispensing organization in order to verify patient authorization
  183  for low-THC cannabis and record the low-THC cannabis dispensed.
  184  The registry must prevent an active registration of a patient by
  185  multiple physicians.
  186         (b)1.Beginning 7 days after the effective date of this
  187  act, the department shall accept applications for licensure as a
  188  dispensing organization. The department shall review each
  189  application to determine whether the applicant meets the
  190  criteria in subsection (6) and qualifies for licensure.
  191         2. Within 10 days after receiving an application for
  192  licensure, the department shall examine the application, notify
  193  the applicant of any apparent errors or omissions, and request
  194  any additional information the department is allowed by law to
  195  require. An application for licensure must be filed with the
  196  department no later than 5 p.m. on the 30th day after the
  197  effective date of this act, and all applications must be
  198  complete no later than 5 p.m. on the 60th day after the
  199  effective date of this act.
  200         3.Prior to the 75th day after the effective date of this
  201  act, the department shall select by lottery two applicants who
  202  meet the criteria in subsection (6) in each of the following
  203  regions:
  204         a.Northwest Florida, consisting of Bay, Calhoun, Escambia,
  205  Franklin, Gadsden, Gulf, Holmes, Jackson, Jefferson, Leon,
  206  Liberty, Madison, Santa Rosa, Okaloosa, Taylor, Wakulla, Walton,
  207  and Washington Counties.
  208         b.Northeast Florida, consisting of Alachua, Baker,
  209  Bradford, Clay, Columbia, Dixie, Duval, Flagler, Gilchrist,
  210  Hamilton, Lafayette, Levy, Marion, Nassau, Putnam, St. Johns,
  211  Suwannee, and Union Counties.
  212         c.Central Florida, consisting of Brevard, Citrus, Hardee,
  213  Hernando, Hillsborough, Indian River, Lake, Orange, Osceola,
  214  Pasco, Pinellas, Polk, Seminole, St. Lucie, Sumter, and Volusia
  215  Counties.
  216         d.Southwest Florida, consisting of Charlotte, Collier,
  217  DeSoto, Glades, Hendry, Highlands, Lee, Manatee, Okeechobee, and
  218  Sarasota Counties.
  219         e.Southeast Florida, consisting of Broward, Miami-Dade,
  220  Martin, Monroe, and Palm Beach Counties.
  221         4.After the department has selected by lottery the 10
  222  dispensing organizations pursuant to subparagraph 3., the
  223  department shall select by lottery 10 more applicants who meet
  224  the criteria in subsection (6) for licensure. Once licensed,
  225  those applicants are authorized to operate in any region in the
  226  state, but a dispensing organization may not have cultivation or
  227  processing facilities outside the region in which it is
  228  licensed.
  229         5.The department shall license an applicant selected
  230  pursuant to subparagraph 3. or subparagraph 4. unless the
  231  applicant fails to pay the licensure fee within 10 days of
  232  selection. If a selected applicant fails to timely pay the
  233  licensure fee, the department shall select by lottery another
  234  applicant from the existing pool of eligible applicants.
  235         6.If the department revokes a license or denies the
  236  renewal of a license pursuant to paragraph (f), the department
  237  shall conduct a new lottery using the selection process outlined
  238  in this paragraph. The selection process must begin 24 hours
  239  after such revocation or denial.
  240         7.If the department does not have a sufficient pool of
  241  qualified applicants to issue 2 licenses in each region, or to
  242  license 10 dispensing organizations pursuant to subparagraph 4.,
  243  the department shall conduct a lottery using the process in this
  244  paragraph every 6 months until each region has 2 licensed
  245  dispensing organizations and 10 additional dispensing
  246  organizations are licensed, totaling 20 licensed dispensing
  247  organizations in this state.
  248         8.This section is exempt from s. 120.60(1) Authorize the
  249  establishment of five dispensing organizations to ensure
  250  reasonable statewide accessibility and availability as necessary
  251  for patients registered in the compassionate use registry and
  252  who are ordered low-THC cannabis under this section, one in each
  253  of the following regions: northwest Florida, northeast Florida,
  254  central Florida, southeast Florida, and southwest Florida.
  255         (c) The department shall use develop an application form
  256  that requires the applicant to state:
  257         1. Whether the application is for initial licensure or
  258  renewal licensure;
  259         2. The name, the physical address, the mailing address, the
  260  address listed on the Department of Agriculture and Consumer
  261  Services certificate required in paragraph (6)(b), and the
  262  contact information for the applicant and for the nursery that
  263  holds the Department of Agriculture and Consumer Services
  264  certificate, if different from the applicant;
  265         3. The name, address, and contact information for the
  266  operating nurseryman of the organization that holds the
  267  Department of Agriculture and Consumer Services certificate;
  268         4. The name, address, license number, and contact
  269  information for the applicant’s medical director; and
  270         5. All information required to be included by subsection
  271  (6).
  272         (d) The department shall and impose an initial application
  273  fee of $50,000, an initial licensure fee of $125,000, and a
  274  biennial renewal fee of $125,000 that is sufficient to cover the
  275  costs of administering this section. An applicant for approval
  276  as a dispensing organization must be able to demonstrate:
  277         1. The technical and technological ability to cultivate and
  278  produce low-THC cannabis. The applicant must possess a valid
  279  certificate of registration issued by the Department of
  280  Agriculture and Consumer Services pursuant to s. 581.131 that is
  281  issued for the cultivation of more than 400,000 plants, be
  282  operated by a nurseryman as defined in s. 581.011, and have been
  283  operated as a registered nursery in this state for at least 30
  284  continuous years.
  285         2. The ability to secure the premises, resources, and
  286  personnel necessary to operate as a dispensing organization.
  287         3. The ability to maintain accountability of all raw
  288  materials, finished products, and any byproducts to prevent
  289  diversion or unlawful access to or possession of these
  290  substances.
  291         4. An infrastructure reasonably located to dispense low-THC
  292  cannabis to registered patients statewide or regionally as
  293  determined by the department.
  294         5. The financial ability to maintain operations for the
  295  duration of the 2-year approval cycle, including the provision
  296  of certified financials to the department. Upon approval, the
  297  applicant must post a $5 million performance bond.
  298         6. That all owners and managers have been fingerprinted and
  299  have successfully passed a level 2 background screening pursuant
  300  to s. 435.04.
  301         7. The employment of a medical director who is a physician
  302  licensed under chapter 458 or chapter 459 to supervise the
  303  activities of the dispensing organization.
  304         (e) The department shall inspect each dispensing
  305  organization’s properties, cultivation facilities, processing
  306  facilities, and retail facilities before they begin operations
  307  and at least once every 2 years thereafter. The department may
  308  conduct additional announced or unannounced inspections,
  309  including followup inspections, at reasonable hours in order to
  310  ensure that such property and facilities maintain compliance
  311  with all applicable requirements in subsections (6) and (7) and
  312  to ensure that the dispensing organization has not committed any
  313  other act that would endanger the health, safety, or security of
  314  a qualified patient, dispensing organization staff, or the
  315  community in which the dispensing organization is located.
  316  Licensure under this section constitutes permission for the
  317  department to enter and inspect the premises and facilities of
  318  any dispensing organization. The department may inspect any
  319  licensed dispensing organization, and a dispensing organization
  320  must make all facility premises, equipment, documents, cannabis,
  321  and cannabis products available to the department upon
  322  inspection. The department may test any cannabis or cannabis
  323  product in order to ensure that it is safe for human consumption
  324  and that it meets the requirements in this section.
  325         (f)The department may suspend or revoke a license, deny or
  326  refuse to renew a license, or impose an administrative penalty
  327  not to exceed $10,000 for the following acts or omissions:
  328         1.A violation of this section or department rule.
  329         2.Failing to maintain qualifications for licensure.
  330         3.Endangering the health, safety, or security of a
  331  qualified patient.
  332         4.Improperly disclosing personal and confidential
  333  information of the qualified patient.
  334         5.Attempting to procure a license by bribery or fraudulent
  335  misrepresentation.
  336         6.Being convicted or found guilty of, or entering a plea
  337  of nolo contendere to, regardless of adjudication, a crime in
  338  any jurisdiction which directly relates to the business of a
  339  dispensing organization.
  340         7.Making or filing a report or record that the licensee
  341  knows to be false.
  342         8.Willfully failing to maintain a record required by this
  343  section or rule of the department.
  344         9.Willfully impeding or obstructing an employee or agent
  345  of the department in the furtherance of his or her official
  346  duties.
  347         10.Engaging in fraud or deceit, negligence, incompetence,
  348  or misconduct in the business practices of a dispensing
  349  organization.
  350         11.Making misleading, deceptive, or fraudulent
  351  representations in or related to the business practices of a
  352  dispensing organization.
  353         12.Having a license or the authority to engage in any
  354  regulated profession, occupation, or business that is related to
  355  the business practices of a dispensing organization revoked,
  356  suspended, or otherwise acted against, including the denial of
  357  licensure, by the licensing authority of any jurisdiction,
  358  including its agencies or subdivisions, for a violation that
  359  would constitute a violation under state law. A licensing
  360  authority’s acceptance of a relinquishment of licensure or a
  361  stipulation, consent order, or other settlement, offered in
  362  response to or in anticipation of the filing of charges against
  363  the license, shall be construed as an action against the
  364  license.
  365         13.Violating a lawful order of the department or an agency
  366  of the state, or failing to comply with a lawfully issued
  367  subpoena of the department or an agency of the state.
  368         (g) The department shall create a permitting process for
  369  all dispensing organization vehicles used for the transportation
  370  of cannabis or cannabis products.
  371         (h)(c)The department shall monitor physician registration
  372  and ordering of low-THC cannabis for ordering practices that
  373  could facilitate unlawful diversion or misuse of low-THC
  374  cannabis and take disciplinary action as indicated.
  375         (i)(d)The department shall adopt rules as necessary to
  376  implement this section.
  377         (6) DISPENSING ORGANIZATION.—
  378         (a) An applicant seeking licensure as a dispensing
  379  organization, or the renewal of its license, must submit an
  380  application to the department. The department must review all
  381  applications for completeness, including an appropriate
  382  inspection of the applicant’s property and facilities to verify
  383  the authenticity of the information provided in, or in
  384  connection with, the application. An applicant authorizes the
  385  department to inspect his or her property and facilities for
  386  licensure by applying under this subsection.
  387         (b) In order to receive or maintain licensure as a
  388  dispensing organization, an applicant must provide proof that:
  389         1.The applicant, or a separate entity that is owned solely
  390  by the same persons or entities in the same ratio as the
  391  applicant, possesses a valid certificate of registration issued
  392  by the Department of Agriculture and Consumer Services pursuant
  393  to s. 581.131 for the cultivation of more than 400,000 plants,
  394  is operated by a nurseryman as defined in s. 581.011, and has
  395  been operated as a registered nursery in this state for at least
  396  30 continuous years.
  397         2. The personnel on staff or under contract for the
  398  applicant have experience cultivating and introducing multiple
  399  varieties of plants in this state, including plants that are not
  400  native to Florida; experience with propagating plants; and
  401  experience with genetic modification or breeding of plants.
  402         3. The personnel on staff or under contract for the
  403  applicant include at least one person who:
  404         a. Has at least 5 years’ experience with United States
  405  Department of Agriculture Good Agricultural Practices and Good
  406  Handling Practices;
  407         b. Has at least 5 years’ experience with United States Food
  408  and Drug Administration Good Manufacturing Practices for food
  409  production;
  410         c. Has a doctorate degree in organic chemistry or
  411  microbiology;
  412         d. Has at least 5 years’ of experience with laboratory
  413  procedures which includes analytical laboratory quality control
  414  measures, chain of custody procedures, and analytical laboratory
  415  methods;
  416         e. Has experience with cannabis cultivation and processing,
  417  including cannabis extraction techniques and producing cannabis
  418  products;
  419         f. Has experience and qualifications in chain of custody or
  420  other tracking mechanisms;
  421         g. Works solely on inventory control; and
  422         h. Works solely for security purposes.
  423         4. The persons who have a direct or indirect interest in
  424  the dispensing organization and the applicant’s managers,
  425  employees, and contractors who directly interact with cannabis
  426  or cannabis products have been fingerprinted and have
  427  successfully passed a level 2 background screening pursuant to
  428  s. 435.04.
  429         5. The applicant owns, or has at least a 2-year lease of,
  430  all properties, facilities, and equipment necessary for the
  431  cultivation and processing of cannabis. The applicant must
  432  provide a detailed description of each facility and its
  433  equipment, a cultivation and processing plan, and a detailed
  434  floor plan. The description must include proof that:
  435         a. The applicant is capable of sufficient cultivation and
  436  processing to serve at least 15,000 patients with an assumed
  437  daily use of 1,000 mg per patient per day of cannabis or
  438  cannabis product;
  439         b. The applicant has arranged for access to all utilities
  440  and resources necessary to cultivate or process cannabis at each
  441  listed facility; and
  442         c. Each facility is secured and has theft-prevention
  443  systems including an alarm system, cameras, and 24-hour security
  444  personnel.
  445         6. The applicant has diversion and tracking prevention
  446  procedures, including:
  447         a. A system for tracking material through cultivation,
  448  processing, and dispensing, including the use of batch and
  449  harvest numbers;
  450         b. An inventory control system for cannabis and cannabis
  451  products;
  452         c. A vehicle tracking and security system; and
  453         d. A cannabis waste-disposal plan.
  454         7. The applicant has recordkeeping policies and procedures
  455  in place.
  456         8. The applicant has a facility emergency management plan.
  457         9. The applicant has a plan for dispensing cannabis
  458  throughout the state. This plan must include planned retail
  459  facilities and a delivery plan for providing cannabis and
  460  cannabis products to qualified patients who cannot travel to a
  461  retail facility.
  462         10. The applicant has financial documentation, including:
  463         a. Documentation that demonstrates the applicant’s
  464  financial ability to operate. If the applicant’s assets, credit,
  465  and projected revenues meet or exceed projected liabilities and
  466  expenses and the applicant provides independent evidence that
  467  the funds necessary for startup costs, working capital, and
  468  contingency financing exist and are available as needed, the
  469  applicant has demonstrated the financial ability to operate.
  470  Financial ability to operate must be documented by:
  471         I. The applicant’s audited financial statements. If the
  472  applicant is a newly formed entity and does not have a financial
  473  history of business upon which audited financial statements may
  474  be submitted, the applicant must provide audited financial
  475  statements for the separate entity that is owned solely by the
  476  same persons or entities in the same ratio as the applicant that
  477  possesses the valid certificate of registration issued by the
  478  Department of Agriculture and Consumer Services;
  479         II.The applicant’s projected financial statements,
  480  including a balance sheet, an income and expense statement, and
  481  a statement of cash flow for the first 2 years of operation,
  482  which provides evidence that the applicant has sufficient
  483  assets, credit, and projected revenues to cover liabilities and
  484  expenses; and
  485         III.A statement of the applicant’s estimated startup costs
  486  and sources of funds, including a break-even projection and
  487  documentation demonstrating that the applicant has the ability
  488  to fund all startup costs, working capital costs, and
  489  contingency financing requirements.
  490  
  491  All documents required under this sub-subparagraph shall be
  492  prepared in accordance with generally accepted accounting
  493  principles and signed by a certified public accountant. The
  494  statements required by sub-sub-subparagraphs II. and III. may be
  495  presented as a compilation.
  496         b.A list of all subsidiaries of the applicant;
  497         c.A list of all lawsuits pending and completed within the
  498  past 7 years of which the applicant was a party; and
  499         d.Proof of a $1 million performance and compliance bond,
  500  or other equivalent means of security deemed equivalent by the
  501  department, such as an irrevocable letter of credit or a deposit
  502  in a trust account or financial institution, payable to the
  503  department, which must be posted once the applicant is approved
  504  as a dispensing organization. The purpose of the bond is to
  505  secure payment of any administrative penalties imposed by the
  506  department and any fees and costs incurred by the department
  507  regarding the dispensing organization license, such as the
  508  dispensing organization failing to pay 30 days after the fine or
  509  costs become final. The department may make a claim against such
  510  bond or security until 1 year after the dispensing
  511  organization’s license ceases to be valid or until 60 days after
  512  any administrative or legal proceeding authorized in this
  513  section involving the dispensing organization concludes,
  514  including any appeal, whichever occurs later.
  515         11. The employment of a medical director who is a physician
  516  licensed under chapter 458 or chapter 459 to supervise the
  517  activities of the dispensing organization.
  518         (c) An approved dispensing organization shall maintain
  519  compliance with the criteria in paragraphs (b), (d), and (e) and
  520  subsection (7) demonstrated for selection and approval as a
  521  dispensing organization under subsection (5) at all times.
  522  Before dispensing low-THC cannabis or cannabis products to a
  523  qualified patient or to the qualified patient’s legal
  524  representative, the dispensing organization shall verify the
  525  identity of the qualified patient or the qualified patient’s
  526  legal representative by requiring the qualified patient or the
  527  qualified patient’s legal representative to produce a
  528  government-issued identification card and shall verify that the
  529  qualified patient and the qualified patient’s legal
  530  representative have has an active registration in the
  531  compassionate use registry, that the order presented matches the
  532  order contents as recorded in the registry, and that the order
  533  has not already been filled. Upon dispensing the low-THC
  534  cannabis, the dispensing organization shall record in the
  535  registry the date, time, quantity, and form of low-THC cannabis
  536  dispensed.
  537         (d) A dispensing organization may have cultivation
  538  facilities, processing facilities, and retail facilities.
  539         1. All matters regarding the location of cultivation
  540  facilities and processing facilities are preempted to the state.
  541  Cultivation facilities and processing facilities must be closed
  542  to the public, and cannabis may not be dispensed on the premises
  543  of such facilities.
  544         2. A municipality must determine by ordinance the criteria
  545  for the number and location of, and other permitting
  546  requirements for, all retail facilities located within its
  547  municipal boundaries. A retail facility may be established in a
  548  municipality only after such an ordinance has been created. A
  549  county must determine by ordinance the criteria for the number,
  550  location, and other permitting requirements for all retail
  551  facilities located within the unincorporated areas of that
  552  county. A retail facility may be established in the
  553  unincorporated areas of a county only after such an ordinance
  554  has been created. Retail facilities must have all utilities and
  555  resources necessary to store and dispense cannabis and cannabis
  556  products. Retail facilities must be secured and have theft
  557  prevention systems, including an alarm system, cameras, and 24
  558  hour security personnel. Retail facilities may not sell, or
  559  contract for the sale of, anything other than cannabis or
  560  cannabis products on the property of the retail facility. Before
  561  a retail facility may dispense cannabis or a cannabis product,
  562  the dispensing organization must have a computer network
  563  compliant with the federal Health Insurance Portability and
  564  Accountability Act of 1996 which is able to access and upload
  565  data to the compassionate use registry and which shall be used
  566  by all retail facilities.
  567         (e) Within 15 days after such information becoming
  568  available, a dispensing organization must provide the department
  569  with updated information, as applicable, including:
  570         1. The location and a detailed description of any new or
  571  proposed facilities.
  572         2. The updated contact information, including electronic
  573  and voice communication, for all dispensing organization
  574  facilities.
  575         3. The registration information for any vehicles used for
  576  the transportation of cannabis and cannabis products, including
  577  confirmation that all such vehicles have tracking and security
  578  systems.
  579         4. A plan for the recall of any or all cannabis or cannabis
  580  products.
  581         (f)1. A dispensing organization may transport cannabis or
  582  cannabis products in vehicles departing from their places of
  583  business only in vehicles that are owned or leased by the
  584  licensee or by a person designated by the dispensing
  585  organization, and for which a valid vehicle permit has been
  586  issued for such vehicle by the department.
  587         2.A vehicle owned or leased by the dispensing organization
  588  or a person designated by the dispensing organization and
  589  approved by the department must be operated by such person when
  590  transporting cannabis or products from the licensee’s place of
  591  business.
  592         3.A vehicle permit may be obtained by a dispensing
  593  organization upon application and payment of a fee of $5 per
  594  vehicle to the department. The signature of the person
  595  designated by the dispensing organization to drive the vehicle
  596  must be included on the vehicle permit application. Such permit
  597  remains valid and does not expire unless the licensee or any
  598  person designated by the dispensing organization disposes of his
  599  or her vehicle, or the licensee’s license is transferred,
  600  canceled, not renewed, or is revoked by the department,
  601  whichever occurs first. The department shall cancel a vehicle
  602  permit upon request of the licensee or owner of the vehicle.
  603         4.By acceptance of a license issued under this section,
  604  the licensee agrees that the licensed vehicle is, at all times
  605  it is being used to transport cannabis or cannabis products,
  606  subject to inspection and search without a search warrant by
  607  authorized employees of the department, sheriffs, deputy
  608  sheriffs, police officers, or other law enforcement officers to
  609  determine that the licensee is transporting such products in
  610  compliance with this section.
  611         (7)TESTING AND LABELING OF CANNABIS.
  612         (a)All cannabis and cannabis products must be tested by an
  613  independent testing laboratory before the dispensing
  614  organization may dispense them. The independent testing
  615  laboratory shall provide the dispensing organization with lab
  616  results. Before dispensing, the dispensing organization must
  617  determine that the lab results indicate that the cannabis or
  618  cannabis product meets the definition of cannabis or cannabis
  619  product, is safe for human consumption, and is free from harmful
  620  contaminants.
  621         (b)All cannabis and cannabis products must be labeled
  622  before dispensing. The label must include, at a minimum:
  623         1. A statement that the cannabis or cannabis product meets
  624  the requirements in paragraph (a);
  625         2.The name of the independent testing laboratory that
  626  tested the cannabis or cannabis product;
  627         3.The name of the cultivation and processing facility
  628  where the cannabis or cannabis product originates; and
  629         4.The batch number and harvest number from which the
  630  cannabis or cannabis product originates.
  631         (8) SAFETY AND EFFICACY RESEARCH FOR CANNABIS.—The
  632  University of Florida College of Pharmacy shall establish and
  633  maintain a safety and efficacy research program for the use of
  634  cannabis or cannabis products to treat qualifying conditions and
  635  symptoms. The program must include a fully integrated electronic
  636  information system for the broad monitoring of health outcomes
  637  and safety signal detection. The electronic information system
  638  must include information from the compassionate use registry;
  639  provider reports, including treatment plans, adverse event
  640  reports, and treatment discontinuation reports; patient reports
  641  of adverse impacts; event-triggered interviews and medical chart
  642  reviews performed by University of Florida clinical research
  643  staff; information from external databases, including Medicaid
  644  billing reports and information in the prescription drug
  645  monitoring database for registered patients; and all other
  646  medical reports required by the University of Florida to conduct
  647  the research required by this subsection. The department must
  648  provide access to information from the compassionate use
  649  registry and the prescription drug monitoring database,
  650  established in s. 893.055, as needed by the University of
  651  Florida to conduct research under this subsection. The Agency
  652  for Health Care Administration must provide access to registered
  653  patient Medicaid records, to the extent allowed under federal
  654  law, as needed by the University of Florida to conduct research
  655  under this subsection.
  656         (9) The persons who have direct or indirect interest in the
  657  dispensing organization and the dispensing organization’s
  658  managers, employees, and contractors who directly interact with
  659  cannabis or cannabis products are prohibited from making
  660  recommendations, offering prescriptions, or providing medical
  661  advice to qualified patients.
  662         (10)(7) EXCEPTIONS TO OTHER LAWS.—
  663         (a) Notwithstanding s. 893.13, s. 893.135, s. 893.147, or
  664  any other provision of law, but subject to the requirements of
  665  this section, a qualified patient and the qualified patient’s
  666  legal representative who is registered with the department on
  667  the compassionate use registry may purchase and possess for the
  668  patient’s medical use up to the amount of low-THC cannabis
  669  ordered for the patient. Nothing in this section exempts any
  670  person from the prohibition against driving under the influence
  671  provided in s. 316.193.
  672         (b) Notwithstanding s. 893.13, s. 893.135, s. 893.147, or
  673  any other provision of law, but subject to the requirements of
  674  this section, an approved dispensing organization and its
  675  owners, managers, and employees and the owners, managers, and
  676  employees of contractors who have direct contact with cannabis
  677  or cannabis product may manufacture, possess, sell, deliver,
  678  distribute, dispense, and lawfully dispose of reasonable
  679  quantities, as established by department rule, of low-THC
  680  cannabis. For purposes of this subsection, the terms
  681  “manufacture,” “possession,” “deliver,” “distribute,” and
  682  “dispense” have the same meanings as provided in s. 893.02.
  683         (c) An approved dispensing organization and its owners,
  684  managers, and employees are not subject to licensure or
  685  regulation under chapter 465 or chapter 499 for manufacturing,
  686  possessing, selling, delivering, distributing, dispensing, or
  687  lawfully disposing of reasonable quantities, as established by
  688  department rule, of low-THC cannabis.
  689         (d) Notwithstanding s. 893.13, s. 893.135, s. 893.147, or
  690  any other law, but subject to the requirements of this section,
  691  a licensed laboratory and its employees may receive and possess
  692  cannabis for the sole purpose of testing the cannabis to ensure
  693  compliance with this section.
  694         (11) Rules adopted by the department under this section are
  695  exempt from the requirement that they be ratified by the
  696  Legislature pursuant to s. 120.541(3).
  697         Section 2. Subsections (1) and (2) and paragraphs (b) and
  698  (c) of subsection (3) of section 381.987, Florida Statutes, are
  699  amended, and paragraph (g) is added to subsection (3) of that
  700  section, to read:
  701         381.987 Public records exemption for personal identifying
  702  information in the compassionate use registry.—
  703         (1) A patient’s personal identifying information held by
  704  the department in the compassionate use registry established
  705  under s. 381.986, including, but not limited to, the patient’s
  706  name, address, telephone number, and government-issued
  707  identification number, and all information pertaining to the
  708  physician’s order for low-THC cannabis and the dispensing
  709  thereof are confidential and exempt from s. 119.07(1) and s.
  710  24(a), Art. I of the State Constitution.
  711         (2) A physician’s identifying information held by the
  712  department in the compassionate use registry established under
  713  s. 381.986, including, but not limited to, the physician’s name,
  714  address, telephone number, government-issued identification
  715  number, and Drug Enforcement Administration number, and all
  716  information pertaining to the physician’s order for low-THC
  717  cannabis and the dispensing thereof are confidential and exempt
  718  from s. 119.07(1) and s. 24(a), Art. I of the State
  719  Constitution.
  720         (3) The department shall allow access to the registry,
  721  including access to confidential and exempt information, to:
  722         (b) A dispensing organization approved by the department
  723  pursuant to s. 381.986 which is attempting to verify the
  724  authenticity of a physician’s order for low-THC cannabis,
  725  including whether the order had been previously filled and
  726  whether the order was written for the person attempting to have
  727  it filled.
  728         (c) A physician who has written an order for low-THC
  729  cannabis for the purpose of monitoring the patient’s use of such
  730  cannabis or for the purpose of determining, before issuing an
  731  order for low-THC cannabis, whether another physician has
  732  ordered the patient’s use of low-THC cannabis. The physician may
  733  access the confidential and exempt information only for the
  734  patient for whom he or she has ordered or is determining whether
  735  to order the use of low-THC cannabis pursuant to s. 381.986.
  736         (g) Persons engaged in research at the University of
  737  Florida pursuant to s. 381.986(8).
  738         Section 3. Section 385.211, Florida Statutes, is amended to
  739  read:
  740         385.211 Refractory and intractable epilepsy treatment and
  741  research at recognized medical centers.—
  742         (1) As used in this section, the term “low-THC cannabis”
  743  means “low-THC cannabis” as defined in s. 381.986 that is
  744  dispensed only from a dispensing organization as defined in s.
  745  381.986.
  746         (2) Notwithstanding chapter 893, medical centers recognized
  747  pursuant to s. 381.925 may conduct research on cannabidiol and
  748  low-THC cannabis. This research may include, but is not limited
  749  to, the agricultural development, production, clinical research,
  750  and use of liquid medical derivatives of cannabidiol and low-THC
  751  cannabis for the treatment for refractory or intractable
  752  epilepsy. The authority for recognized medical centers to
  753  conduct this research is derived from 21 C.F.R. parts 312 and
  754  316. Current state or privately obtained research funds may be
  755  used to support the activities described in this section.
  756         Section 4. Subsection (3) of section 893.02, Florida
  757  Statutes, is amended to read:
  758         893.02 Definitions.—The following words and phrases as used
  759  in this chapter shall have the following meanings, unless the
  760  context otherwise requires:
  761         (3) “Cannabis” means all parts of any plant of the genus
  762  Cannabis, whether growing or not; the seeds thereof; the resin
  763  extracted from any part of the plant; and every compound,
  764  manufacture, salt, derivative, mixture, or preparation of the
  765  plant or its seeds or resin. The term does not include “low-THC
  766  cannabis,” as defined in s. 381.986, if manufactured, possessed,
  767  sold, purchased, delivered, distributed, or dispensed, in
  768  conformance with s. 381.986.
  769         Section 5. Paragraph (b) of subsection (7) of section
  770  893.055, Florida Statutes, is amended to read:
  771         893.055 Prescription drug monitoring program.—
  772         (7)
  773         (b) A pharmacy, prescriber, or dispenser shall have access
  774  to information in the prescription drug monitoring program’s
  775  database which relates to a patient of that pharmacy,
  776  prescriber, or dispenser in a manner established by the
  777  department as needed for the purpose of reviewing the patient’s
  778  controlled substance prescription history. Persons engaged in
  779  research at the University of Florida pursuant to s. 381.986(8)
  780  shall have access to information in the prescription drug
  781  monitoring program’s database which relates to qualified
  782  patients as defined in s. 381.986(1) for the purpose of
  783  conducting such research. Other access to the program’s database
  784  shall be limited to the program’s manager and to the designated
  785  program and support staff, who may act only at the direction of
  786  the program manager or, in the absence of the program manager,
  787  as authorized. Access by the program manager or such designated
  788  staff is for prescription drug program management only or for
  789  management of the program’s database and its system in support
  790  of the requirements of this section and in furtherance of the
  791  prescription drug monitoring program. Confidential and exempt
  792  information in the database shall be released only as provided
  793  in paragraph (c) and s. 893.0551. The program manager,
  794  designated program and support staff who act at the direction of
  795  or in the absence of the program manager, and any individual who
  796  has similar access regarding the management of the database from
  797  the prescription drug monitoring program shall submit
  798  fingerprints to the department for background screening. The
  799  department shall follow the procedure established by the
  800  Department of Law Enforcement to request a statewide criminal
  801  history record check and to request that the Department of Law
  802  Enforcement forward the fingerprints to the Federal Bureau of
  803  Investigation for a national criminal history record check.
  804         Section 6. Paragraph (h) is added to subsection (3) of
  805  section 893.0551, Florida Statutes, to read:
  806         893.0551 Public records exemption for the prescription drug
  807  monitoring program.—
  808         (3) The department shall disclose such confidential and
  809  exempt information to the following persons or entities upon
  810  request and after using a verification process to ensure the
  811  legitimacy of the request as provided in s. 893.055:
  812         (h) Persons engaged in research at the University of
  813  Florida pursuant to s. 381.986(8).
  814         Section 7. Section 1004.441, Florida Statutes, is amended
  815  to read:
  816         1004.441 Refractory and intractable epilepsy treatment and
  817  research.—
  818         (1) As used in this section, the term “low-THC cannabis”
  819  means “low-THC cannabis” as defined in s. 381.986 that is
  820  dispensed only from a dispensing organization as defined in s.
  821  381.986.
  822         (2) Notwithstanding chapter 893, state universities with
  823  both medical and agricultural research programs, including those
  824  that have satellite campuses or research agreements with other
  825  similar institutions, may conduct research on cannabidiol and
  826  low-THC cannabis. This research may include, but is not limited
  827  to, the agricultural development, production, clinical research,
  828  and use of liquid medical derivatives of cannabidiol and low-THC
  829  cannabis for the treatment for refractory or intractable
  830  epilepsy. The authority for state universities to conduct this
  831  research is derived from 21 C.F.R. parts 312 and 316. Current
  832  state or privately obtained research funds may be used to
  833  support the activities authorized by this section.
  834         Section 8. This act shall take effect upon becoming a law.
  835  
  836  ================= T I T L E  A M E N D M E N T ================
  837  And the title is amended as follows:
  838         Delete everything before the enacting clause
  839  and insert:
  840                        A bill to be entitled                      
  841         An act relating to cannabis; amending s. 381.986,
  842         F.S.; defining terms; revising the illnesses and
  843         symptoms for which a physician may order a patient the
  844         medical use of cannabis in certain circumstances;
  845         providing that a physician who improperly orders
  846         cannabis is subject to specified disciplinary action;
  847         revising the duties of the Department of Health;
  848         requiring the department to create a secure,
  849         electronic, and online compassionate use registry;
  850         requiring the department to begin to accept
  851         applications for licensure as a dispensing
  852         organization according to a specified application
  853         process; requiring the department to review all
  854         applications, notify applicants of deficient
  855         applications, and request any additional information
  856         within a specified period; requiring an application
  857         for licensure to be filed and complete by specified
  858         dates; requiring the department to select two
  859         applicants in specified regions for licensure as a
  860         dispensing organization; requiring the department to
  861         issue 10 additional licenses to qualified applicants
  862         by lottery; authorizing applicants to operate in any
  863         region of the state; prohibiting a dispensing
  864         organization from having cultivation or processing
  865         facilities outside the region in which it is licensed;
  866         requiring the department to select by lottery another
  867         applicant in certain circumstances; requiring the
  868         department to conduct a new lottery after the
  869         revocation or the denial of renewal of a license;
  870         requiring the department to conduct a lottery at
  871         specified intervals if there are available dispensing
  872         organization licenses; providing an exemption for the
  873         application process; requiring the department to use
  874         an application form that requires specified
  875         information from the applicant; requiring the
  876         department to impose specified application fees;
  877         requiring the department to inspect each dispensing
  878         organization’s properties, cultivation facilities,
  879         processing facilities, and retail facilities before
  880         those facilities may operate; authorizing followup
  881         inspections at reasonable hours; providing that
  882         licensure constitutes permission for the department to
  883         enter and inspect the premises and facilities of any
  884         dispensing organization; authorizing the department to
  885         inspect any licensed dispensing organization;
  886         requiring dispensing organizations to make all
  887         facility premises, equipment, documents, cannabis, and
  888         cannabis products available to the department upon
  889         inspection; authorizing the department to test
  890         cannabis or cannabis products; authorizing the
  891         department to suspend or revoke a license, deny or
  892         refuse to renew a license, or impose a maximum
  893         administrative penalty for specified acts or
  894         omissions; requiring the department to create a
  895         permitting process for vehicles used for the
  896         transportation of cannabis or cannabis products;
  897         authorizing the department to adopt rules as necessary
  898         for implementation of specified provisions and
  899         procedures, and to provide specified guidance;
  900         providing procedures and requirements for an applicant
  901         seeking licensure as a dispensing organization or the
  902         renewal of its license; requiring the dispensing
  903         organization to verify specified information of
  904         specified persons in certain circumstances;
  905         authorizing a dispensing organization to have
  906         cultivation facilities, processing facilities, and
  907         retail facilities; authorizing a retail facility to be
  908         established in a municipality only after such an
  909         ordinance has been created; authorizing a retail
  910         facility to be established in the unincorporated areas
  911         of a county only after such an ordinance has been
  912         created; requiring retail facilities to have all
  913         utilities and resources necessary to store and
  914         dispense cannabis and cannabis products; requiring
  915         retail facilities to be secured with specified theft
  916         prevention systems; requiring a dispensing
  917         organization to provide the department with specified
  918         updated information within a specified period;
  919         authorizing a dispensing organization to transport
  920         cannabis or cannabis products in vehicles in certain
  921         circumstances; requiring such vehicles to be operated
  922         by specified persons in certain circumstances;
  923         requiring a fee for a vehicle permit; requiring the
  924         signature of the designated driver with a vehicle
  925         permit application; providing for expiration of the
  926         permit in certain circumstances; requiring the
  927         department to cancel a vehicle permit upon the request
  928         of specified persons; providing that the licensee
  929         authorizes the inspection and search of his or her
  930         vehicle without a search warrant by specified persons;
  931         requiring all cannabis and cannabis products to be
  932         tested by an independent testing laboratory before the
  933         dispensing organization may dispense it; requiring the
  934         independent testing laboratory to provide the lab
  935         results to the dispensing organization for a specified
  936         determination; requiring all cannabis and cannabis
  937         products to be labeled with specified information
  938         before dispensing; requiring the University of Florida
  939         College of Pharmacy to establish and maintain a
  940         specified safety and efficacy research program;
  941         providing program requirements; requiring the
  942         department to provide information from the
  943         prescription drug monitoring program to the University
  944         of Florida as needed; requiring the Agency for Health
  945         Care Administration to provide access to specified
  946         patient records under certain circumstances;
  947         prohibiting persons who have direct or indirect
  948         interest in a dispensing organization and the
  949         dispensing organization’s managers, employees, and
  950         contractors who directly interact with cannabis and
  951         cannabis products from making recommendations,
  952         offering prescriptions, or providing medical advice to
  953         qualified patients; providing that the act does not
  954         provide an exception to the prohibition against
  955         driving under the influence; authorizing specified
  956         individuals to manufacture, possess, sell, deliver,
  957         distribute, dispense, and lawfully dispose of
  958         reasonable quantities of cannabis; authorizing a
  959         licensed laboratory and its employees to receive and
  960         possess cannabis in certain circumstances; providing
  961         that specified rules adopted by the department are
  962         exempt from the requirement to be ratified by the
  963         Legislature; amending s. 381.987, F.S.; conforming
  964         provisions to changes made by the act; requiring the
  965         department to allow specified persons engaged in
  966         research to access the compassionate use registry;
  967         amending ss. 385.221 and 893.02, F.S.; conforming
  968         provisions to changes made by the act; amending s.
  969         893.055, F.S.; providing that persons engaged in
  970         research at the University of Florida shall have
  971         access to specified information; amending s. 893.0551,
  972         F.S.; providing a specified public records exemption
  973         for persons engaged in research at the University of
  974         Florida; amending s. 1004.441, F.S.; conforming
  975         provisions to changes made by the act; providing an
  976         effective date.