SB1037 HFA Hornbuckle 5-20

Altizer – 3259

            Delegate Hornbuckle moves to amend the bill on page six, line 106, following the period, by inserting a new section, to read as follows:

article 3.  medical cannabis program.

§16A-3-1.  Establishment of program.

(a)  A medical cannabis program for patients suffering from serious medical conditions is established. The program shall be implemented and administered by the bureau. The bureau shall:

(1)  Issue permits to medical cannabis organizations to authorize them to grow, process or dispense medical cannabis and ensure their compliance with this act.

(2)  Register practitioners and ensure their compliance with this act.

(3)  Have regulatory and enforcement authority over the growing, processing, sale and use of medical cannabis in this state.

(4)  Establish and maintain an electronic database to include activities and information relating to medical cannabis organizations, certifications and identification cards issued, practitioner registration and electronic tracking of all medical cannabis as required under this act to include:

(A)  Ensurance that medical cannabis is not diverted or otherwise used for unlawful purposes by a practitioner or medical cannabis organization.

(B)  Ability to establish the authenticity of identification cards.

(C)  Recording recommended forms of medical cannabis provided in a certification filed by the practitioner.

(D)  Monitoring all growth, transfer, possession, processing, testing and dispensing of medical cannabis in this state.

(E)  The tracking system under article seven of this chapter must include information under section one, article eight of this chapter and any other information required by the bureau to be used by the bureau and dispensaries to enable a dispensary to lawfully provide medical cannabis. The tracking system and database shall be capable of providing information in real time. The database shall be capable of receiving information from a dispensary regarding the disbursement of medical cannabis to patients and caregivers. This information shall be immediately accessible to the bureau and other dispensaries to inhibit diversion and ensure compliance with this act.

(5)  Maintain a directory of patients and caregivers approved to use or assist in the administration of medical cannabis within the bureau’s database.

(6)  Develop a four-hour training course for physicians regarding the latest scientific research on medical cannabis, including the risks and benefits of medical cannabis and other information deemed necessary by the bureau. Successful completion of the course shall be approved as continuing education credits as determined by:

(A)  The State Board of Medicine.

(B)  The State Board of Osteopathic Medicine.

(7)  Develop a two-hour course for the principals and employees of a medical cannabis organization who either have direct contact with patients or caregivers or who physically handle medical cannabis. Employees must successfully complete the course no later than ninety days after commencing employment. Principals must successfully complete the course prior to commencing initial operation of the medical cannabis organization. The subject matter of the course shall include the following:

(A)  Methods to recognize and report unauthorized activity, including diversion of medical cannabis for unlawful purposes and falsification of identification cards.

(B)  Proper handling of medical cannabis and recordkeeping.

(C)  Any other subject required by the bureau.

(8)  Develop enforcement procedures, including announced and unannounced inspections of facilities of the grower/processors and dispensaries and all records of the medical cannabis organizations.

(9)  Establish a program to authorize the use of medical cannabis to conduct medical research relating to the use of medical cannabis to treat serious medical conditions, including the collection of data and the provision of research grants.

(10)  Establish and maintain public outreach programs about the medical cannabis program, including:

(A)  A dedicated telephone number for patients, caregivers and members of the public to obtain basic information about the dispensing of medical cannabis under this act.

(B)  A publicly accessible Internet website with similar information.

(11)  Collaborate as necessary with other state agencies or contract with third parties as necessary to carry out the provisions of this act.

(12)  Determine the number and type of medical cannabis products to be produced by a grower/processor and dispensed by a dispensary.

(13)  Develop recordkeeping requirements for all books, papers, any electronic database or tracking system data and other information of a medical cannabis organization. Information shall be retained for a minimum period of four years unless otherwise provided by the bureau.

(14)  Restrict the advertising and marketing of medical cannabis, which shall be consistent with the Federal rules and regulations governing prescription drug advertising and marketing.

(b)  The bureau shall propose rules for legislative promulgation pursuant to the provisions of article three, chapter twenty-nine-a of this code as may be necessary to carry out and implement the provisions of this act.  The bureau shall also have the power to propose and promulgate emergency rules as may be necessary to carry out and implement the provisions of this act.

(c)  One year following implementation of the article,  and annually thereafter, the bureau shall prepare a report that shall include: (i) the total number of licensed cannabis growers, processors and dispensaries; (ii) the number and percentage of licenses provided to minority and women businesses as defined pursuant to §5A-3-59 of this code, and veteran owned businesses, which is defined as any business that is at least 51% veteran owned; (iii) the total number and percentage of minority, women, and veteran employees in the cannabis industry, and (iv) recommendations on reducing or eliminating any identified barriers to entry, including access to capital, in the medical cannabis industry. The bureau may require applicants and permittees to provide the necessary information to track this information. The reports shall be submitted to the Legislature’s Joint Committee on Government and Finance.

(d)  If, upon completion of an annual  study, the bureau determines that there is evidence of discrimination or barriers to entry in the medical cannabis industry, the bureau shall adopt diversity licensing goals that provide meaningful participation of communities disproportionately affected by cannabis prohibition and enforcement, including minority business enterprises, women business enterprises and veteran business enterprises. The bureau shall, in consultation with the Herbert Henderson Office of Minority Affairs and the Office of Veteran Affairs, develop training programs designed and implemented to achieve meaningful participation by minority persons, women, and veterans. These programs shall include, but shall not be limited to: (i) recruitment of minority-owned, women-owned, and veteran-owned business enterprises to become licensed in medical  cannabis-related businesses; (ii) development of workforce training for minorities, women, and veterans to enter into cannabis-related businesses; (iii) creation of employer training to attract minorities, women, and veterans into the workforce; and (iv) outreach to disadvantaged groups, including consultations with state agencies and providing education and training opportunities.”

            To strike out the title and insert in lieu thereof, the following:

Eng. Senate Bill 1037- A Bill to amend and reenact §16A-2-1 of the Code of West Virginia, 1931, as amended; to amend and reenact §16A-3-1 of said code; to amend and reenact §16A-4-3 of said code; to amend and reenact §16A-6-3 of this code; to amend and reenact §16A-6-13 of said code; to amend and reenact §16A-7-4 of said code; to amend and reenact §16A-8-1 of said code; to amend and reenact §16A-9-1 of said code; to amend said code by adding thereto two new sections, designated §16A-9-3 and §16A-9-4; to amend and reenact §16A-10-6 of said code; to amend and reenact §16A-11-1 of said code; to amend said code by adding thereto a new section, designated §16A-15-10; and to amend and reenact §16A-16-1 of said code, all relating generally to medical cannabis; modifying certain definitions; requiring a study and report on minority, women and veteran owned participation in medical cannabis businesses, and if needed having burau provide training and assistance; modifying conditions for issuance of patient certifications; expanding practitioner reporting requirements; defining resident for purposes of the act; requiring that state residents own a majority of business entities applying for medical cannabis organization permits; removing regional distribution requirements for growers, processors, and dispensaries; establishing criteria for choosing the locations of dispensary permittees; requiring the Bureau for Public Health to adopt fair and objective evaluation procedures in choosing permittees; requiring numeric scoring of applications; increasing the maximum number of dispensary permits; increasing the number of dispensary permits a person or entity may hold; authorizing persons or entities to hold grower, processor and dispensary permits; authorizing the bureau to oversee testing of medical cannabis; directing that fees for testing of medical cannabis received by the Commissioner of Agriculture be deposited in the Medical Cannabis Program Fund for disbursement to the Commissioner of Agriculture; authorizing the bureau to contract with persons or entities other than the Commissioner of Agriculture for testing of medical cannabis; removing the requirement that dispensaries have a physician or pharmacist onsite; modifying tax rates and tax procedures related to medical cannabis organizations establishing a 10 percent tax on gross proceeds at the dispensary level; authorizing the electronic filing with the Tax Commissioner; directing tax proceeds to be deposited in the Medical Cannabis Program Fund; clarifying applicability of the West Virginia Tax Procedure and Administration Act and the West Virginia Tax Crimes and Penalties Act apply to medical cannabis operations; extending the authority of the bureau to adopt emergency rules until July 1, 2021; adding two osteopathic physicians appointed by the West Virginia Osteopathic Association to the Medical Cannabis Advisory Board; immunizing state officials and employees from causes of action in their personal capacities for actions taken to implement the act; limiting any type of recovery to proceeds of available insurance; obligating the state to defend and indemnify state officials and employees against one type of action brought against them for implementing the act; authorizing pre-certification of patients; maintaining restriction that patient certificates may not be issued until July 1, 2019; and incorporating certain tax offenses and penalties by reference.