Senate Bill 548 (2023) — Applicants for licensure as a medical marijuana treatment center
SB 548
Florida Bills
Florida Senate - 2023 SB 548 By Senator Davis 5-00894-23 2023548__ Page 1 of 8 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1
An act relating to applicants for licensure as a 2 medical marijuana treatment center; amending s. 3 381.986, F.S.; authorizing a joint venture partner of 4 specified applicants to be licensed as a medical 5 marijuana treatment center and receive maximum 6 consideration for its diversity plan under certain 7 circumstances; requiring the Department of Health to 8 license certain applicants that are recognized class 9 members of specified class actions; providing that the 10 rights of such recognized class members inure to their 11 successors or assignees; authorizing an applicant for 12 licensure as a medical marijuana treatment center to 13 demonstrate that such applicant has maintained a bona 14 fide business in the agriculture industry in the state 15 for a specified time period to satisfy certain 16 application criteria; specifying the consideration 17 that certain applicants will receive in meeting 18 diversity plan requirements; providing an effective 19 date. 20 21 Be It Enacted by the Legislature of the State of Florida: 22 23
Section 1. Paragraphs (
a) and (
b) of subsection (8) of 24
section 381.986, Florida Statutes, are amended to read: 25 381.986 Medical use of marijuana.— 26
(8) MEDICAL MARIJUANA TREATMENT CENTERS.— 27 (
a) The department shall license medical marijuana 28 treatment centers to ensure reasonable statewide accessibility 29
Florida Senate - 2023 SB 548 5-00894-23 2023548__ Page 2 of 8 CODING: Words stricken are deletions; words underlined are additions. and availability as necessary for qualified patients registered 30 in the medical marijuana use registry and who are issued a 31 physician certification under this section. 32 1.
As soon as practicable, but no later than July 3, 2017, 33 the department shall license as a medical marijuana treatment 34 center any entity that holds an active, unrestricted license to 35 cultivate, process, transport, and dispense low-THC cannabis, 36 medical cannabis, and cannabis delivery devices, under former s. 37 381.986, Florida Statutes 2016, before July 1, 2017, and which 38 meets the requirements of this section.
In addition to the 39 authority granted under this section, these entities are 40 authorized to dispense low-THC cannabis, medical cannabis, and 41 cannabis delivery devices ordered pursuant to former s. 381.986, 42 Florida Statutes 2016, which were entered into the compassionate 43 use registry before July 1, 2017, and are authorized to begin 44 dispensing marijuana under this
section on July 3, 2017. The 45 department may grant variances from the representations made in 46 such an entity’s original application for approval under former 47 s. 381.986, Florida Statutes 2014, pursuant to paragraph (e). 48 2. The department shall license as medical marijuana 49 treatment centers 10 applicants that meet the requirements of 50 this section, under the following parameters: 51 a.
As soon as practicable, but no later than August 1, 52 2017, the department shall license any applicant whose 53 application was reviewed, evaluated, and scored by the 54 department and which was denied a dispensing organization 55 license by the department under former s. 381.986, Florida 56 Statutes 2014; which had one or more administrative or judicial 57 challenges pending as of January 1, 2017, or had a final ranking 58
Florida Senate - 2023 SB 548 5-00894-23 2023548__ Page 3 of 8 CODING: Words stricken are deletions; words underlined are additions. within one point of the highest final ranking in its region 59 under former s. 381.986, Florida Statutes 2014; which meets the 60 requirements of this section; and which provides documentation 61 to the department that it has the existing infrastructure and 62 technical and technological ability to begin cultivating 63 marijuana within 30 days after registration as a medical 64 marijuana treatment center. 65 b.
As soon as practicable, the department shall license one 66 applicant that is a recognized class member of Pigford v. 67 Glickman, 185 F.R.D. 82 (D.D.C. 1999), or In Re Black Farmers 68 Litig., 856 F. Supp. 2d 1 (D.D.C. 2011). An applicant licensed 69 under this sub-subparagraph is exempt from the requirement of 70 subparagraph (b)2.
An applicant or a joint venture partner of 71 such applicant that applies for licensure under this sub-72 subparagraph, pays its initial application fee, is determined by 73 the department through the application process to qualify as a 74 recognized class member, and is not awarded a license under this 75 sub-subparagraph may transfer its initial application fee to one 76 subsequent opportunity to apply for licensure under subparagraph 77 4. and receive the maximum consideration for its diversity plan 78 as described in subparagraph (b)10. 79 c.
As soon as practicable, but no later than August 1, 80 2023, the department shall license any applicant that is a 81 recognized class member of Pigford v. Glickman, 185 F.R.D. 82 82 (D.D.C. 1999) or In Re Black Farmers Litig., 856 F. Supp. 2d 1 83 (D.D.C. 2011) whose application was reviewed, evaluated, and 84 scored by the department and was denied a dispensing 85 organization license by the department under former s. 381.986, 86 Florida Statutes 2014; had one or more administrative or 87
Florida Senate - 2023 SB 548 5-00894-23 2023548__ Page 4 of 8 CODING: Words stricken are deletions; words underlined are additions. judicial challenges pending as of October 11, 2022, or had a 88 final ranking within one point of the highest final ranking in 89 its region under former s. 381.986, Florida Statutes 2014; meets 90 the requirements of this section; provides documentation to the 91 department that he or she is a recognized class member of 92 Pigford v. Glickman, 185 F.R.D. 82 (D.D.C. 1999) or In Re Black 93 Farmers Litig., 856 F.
Supp. 2d 1 (D.D.C. 2011) at the time of 94 the application; and provides documentation to the department 95 that it has the existing infrastructure and technical and 96 technological ability to begin cultivating marijuana within 30 97 days after registration as a medical marijuana treatment center. 98 The rights of the recognized class member under this sub-99 subparagraph inure to its successors or assignees. 100 d.c. As soon as practicable, but no later than October 3, 101 2017, the department shall license applicants that meet the 102 requirements of this
section in sufficient numbers to result in 103 10 total licenses issued under this subparagraph, while 104 accounting for the number of licenses issued under sub-105 subparagraphs a. and b. 106 3.
For up to two of the licenses issued under subparagraph 107 2., the department shall give preference to applicants that 108 demonstrate in the their applications ownership of that they own 109 one or more facilities that are, or were, used for the canning, 110 concentrating, or otherwise processing of citrus fruit or citrus 111 molasses and that will be used use or converted convert the 112 facility or facilities for the processing of marijuana. 113 4.
Within 6 months after the registration of 100,000 active 114 qualified patients in the medical marijuana use registry, the 115 department shall license four additional medical marijuana 116
Florida Senate - 2023 SB 548 5-00894-23 2023548__ Page 5 of 8 CODING: Words stricken are deletions; words underlined are additions. treatment centers that meet the requirements of this section. 117 Thereafter, the department shall license four medical marijuana 118 treatment centers within 6 months after the registration of each 119 additional 100,000 active qualified patients in the medical 120 marijuana use registry that meet the requirements of this 121 section. 122 (
b) An applicant for licensure as a medical marijuana 123 treatment center shall apply to the department on a form 124 prescribed by the department and adopted in rule.
The department 125 shall adopt rules pursuant to ss. 120.536(1) and 120.54 126 establishing a procedure for the issuance and biennial renewal 127 of licenses, including initial application and biennial renewal 128 fees sufficient to cover the costs of implementing and 129 administering this section, and establishing supplemental 130 licensure fees for payment beginning May 1, 2018, sufficient to 131 cover the costs of administering ss. 381.989 and 1004.4351.
The 132 department shall identify applicants with strong diversity plans 133 reflecting this state’s commitment to diversity and implement 134 training programs and other educational programs to enable 135 minority persons and minority business enterprises, as defined 136 in s. 288.703, and veteran business enterprises, as defined in 137 s. 295.187, to compete for medical marijuana treatment center 138 licensure and contracts. Subject to the requirements in 139 subparagraphs (a)2.-4., the department shall issue a license to 140 an applicant if the applicant meets the requirements of this 141
section and pays the initial application fee. The department 142 shall renew the licensure of a medical marijuana treatment 143 center biennially if the licensee meets the requirements of this 144
section and pays the biennial renewal fee. However, the 145
Florida Senate - 2023 SB 548 5-00894-23 2023548__ Page 6 of 8 CODING: Words stricken are deletions; words underlined are additions. department may not renew the license of a medical marijuana 146 treatment center that has not begun to cultivate, process, and 147 dispense marijuana by the date that the medical marijuana 148 treatment center is required to renew its license. An individual 149 may not be an applicant, owner, officer, board member, or 150 manager on more than one application for licensure as a medical 151 marijuana treatment center.
An individual or entity may not be 152 awarded more than one license as a medical marijuana treatment 153 center. An applicant for licensure as a medical marijuana 154 treatment center must demonstrate: 155 1. That, for the 5 consecutive years before submitting the 156 application, the applicant has been registered to do business in 157 the state or has maintained a bona fide business in the 158 agriculture industry in the state. 159 2. Possession of a valid certificate of registration issued 160 by the Department of Agriculture and Consumer Services pursuant 161 to s. 581.131. 162 3.
The technical and technological ability to cultivate and 163 produce marijuana, including, but not limited to, low-THC 164 cannabis. 165 4. The ability to secure the premises, resources, and 166 personnel necessary to operate as a medical marijuana treatment 167 center. 168 5. The ability to maintain accountability of all raw 169 materials, finished products, and any byproducts to prevent 170 diversion or unlawful access to or possession of these 171 substances. 172 6. An infrastructure reasonably located to dispense 173 marijuana to registered qualified patients statewide or 174
Florida Senate - 2023 SB 548 5-00894-23 2023548__ Page 7 of 8 CODING: Words stricken are deletions; words underlined are additions. regionally as determined by the department. 175 7. The financial ability to maintain operations for the 176 duration of the 2-year approval cycle, including the provision 177 of certified financial statements to the department. 178 a. Upon approval, the applicant must post a $5 million 179 performance bond issued by an authorized surety insurance 180 company rated in one of the three highest rating categories by a 181 nationally recognized rating service.
However, a medical 182 marijuana treatment center serving at least 1,000 qualified 183 patients is only required to maintain a $2 million performance 184 bond. 185 b. In lieu of the performance bond required under sub-186 subparagraph a., the applicant may provide an irrevocable letter 187 of credit payable to the department or provide cash to the 188 department.
If provided with cash under this sub-subparagraph, 189 the department shall deposit the cash in the Grants and 190 Donations Trust Fund within the Department of Health, subject to 191 the same conditions as the bond regarding requirements for the 192 applicant to forfeit ownership of the funds. If the funds 193 deposited under this sub-subparagraph generate interest, the 194 amount of that interest shall be used by the department for the 195 administration of this section. 196 8. That all owners, officers, board members, and managers 197 have passed a background screening pursuant to subsection (9). 198 9.
The employment of a medical director to supervise the 199 activities of the medical marijuana treatment center. 200 10. A diversity plan that promotes and ensures the 201 involvement of minority persons and minority business 202 enterprises, as defined in s. 288.703, or veteran business 203
Florida Senate - 2023 SB 548 5-00894-23 2023548__ Page 8 of 8 CODING: Words stricken are deletions; words underlined are additions. enterprises, as defined in s. 295.187, in ownership, management, 204 and employment. Any applicant that is a recognized class member 205 of Pigford v. Glickman, 185 F.R.D. 82 (D.D.C. 1999) or In Re 206 Black Farmers Litig., 856 F. Supp. 2d 1 (D.D.C. 2011) satisfies 207 the diversity plan requirement and shall receive the maximum 208 consideration on the application for administration of this 209 section.
Any applicant that applies as a joint venture partner 210 with a recognized class member shall also receive the maximum 211 consideration on the application for administration of this 212 section. An applicant for licensure renewal must show the 213 effectiveness of the diversity plan by including the following 214 with his or her application for renewal: 215 a. Representation of minority persons and veterans in the 216 medical marijuana treatment center’s workforce; 217 b. Efforts to recruit minority persons and veterans for 218 employment; and 219 c.
A record of contracts for services with minority 220 business enterprises and veteran business enterprises. 221