AB224: Bill Text

AB224,22,10 (4) A compassion center shall have all tetrahydrocannabinols tested for mold, fungus, pesticides, and other contaminants and may not sell, distribute, or deliver tetrahydrocannabinols that test positive for mold, fungus, pesticides, or other contaminants if the contaminants, or level of contaminants, are identified by the testing laboratories under s. 50.66 (2) to be potentially unsafe to a qualifying patient's health.

AB224,22,11 (5) A compassion center may cultivate marijuana outdoors.

AB224,22,15 50.66 Testing laboratories. The department shall register entities as tetrahydrocannabinols testing laboratories. The laboratories may possess or manufacture tetrahydrocannabinols or drug paraphernalia and shall perform the following services:

AB224,22,17 (1) Test marijuana produced for the medical use of tetrahydrocannabinols for potency and for mold, fungus, pesticides, and other contaminants.

AB224,22,20 (2) Collect information on research findings and conduct research related to the medical use of tetrahydrocannabinols, including research that identifies potentially unsafe levels of contaminants.

AB224,22,22 (3) Provide training to persons who hold registry identification cards, treatment teams, and persons employed by compassion centers on the following:

AB224,22,24 (a) The safe and efficient cultivation, harvesting, packaging, labeling, and distribution of marijuana for the medical use of tetrahydrocannabinols.

AB224,22,25 (b) Security and inventory accountability procedures.

AB224,23,1 (c) The most recent research on the medical use of tetrahydrocannabinols.

AB224,41 Section 41. Subchapter IV (title) of chapter 50 [precedes 50.90] of the statutes is renumbered subchapter VI (title) of chapter 50 [precedes 50.90].

AB224,42 Section 42. 59.54 (25) (title) of the statutes is amended to read:

AB224,23,5 59.54 (25) (title) Possession Regulation of marijuana.

AB224,43 Section 43. 59.54 (25) (a) (intro.) of the statutes is amended to read:

AB224,23,15 59.54 (25) (a) (intro.) The board may enact and enforce an ordinance to prohibit the possession of marijuana, as defined in s. 961.01 (14), subject to the exceptions in s. 961.41 (3g) (intro.), and provide a forfeiture for a violation of the ordinance that is consistent with s. 961.71 or 961.72; except that if a complaint is issued regarding an allegation of possession of more than 25 grams of marijuana, or possession of any amount of marijuana following a conviction in this state for possession of marijuana alleging a violation of s. 961.72 (2) (b) 2., (c) 3., or (d) 4., the subject of the complaint may not be prosecuted under this subsection for the same action that is the subject of the complaint unless all of the following occur:

AB224,44 Section 44. 66.0107 (1) (bm) of the statutes is amended to read:

AB224,24,2 66.0107 (1) (bm) Enact and enforce an ordinance to prohibit the possession of marijuana, as defined in s. 961.01 (14), subject to the exceptions in s. 961.41 (3g) (intro.), and provide a forfeiture for a violation of the ordinance that is consistent with s. 961.71 or 961.72; except that if a complaint is issued regarding an allegation of possession of more than 25 grams of marijuana, or possession of any amount of marijuana following a conviction in this state for possession of marijuana alleging a violation of s. 961.72 (2) (b) 2., (c) 3., or (d) 4., the subject of the complaint may not be prosecuted under this paragraph for the same action that is the subject of the complaint unless the charges are dismissed or the district attorney declines to prosecute the case.

AB224,45 Section 45. 66.0408 of the statutes is created to read:

AB224,24,6 66.0408 Cultivation of tetrahydrocannabinols. (1) No village, town, city, or county may enact or enforce an ordinance or a resolution that prohibits cultivating tetrahydrocannabinols outdoors if the cultivation is by one of the following:

AB224,24,7 (a) A compassion center, as defined in s. 50.60 (1).

AB224,24,10 (b) A person who is cultivating tetrahydrocannabinols for the medical use of tetrahydrocannabinols, as defined in s. 50.60 (4), if the amount does not exceed the maximum medicinal amount, as defined in s. 50.60 (3).

AB224,24,12 (c) A person who is a personal-use permit holder, as defined in s. 961.70 (7), who has no more than 12 marijuana plants at one time.

AB224,46 Section 46. 85.53 (1) (d) of the statutes is amended to read:

AB224,24,16 85.53 (1) (d) "Operating while intoxicated" means a violation of s. 346.63 (1) or, (2m), or (2p) or a local ordinance in conformity therewith or of s. 346.63 (2) or (6), 940.09 (1) or 940.25.

AB224,47 Section 47. 139.87 (7) of the statutes is amended to read:

AB224,24,20 139.87 (7) "Tetrahydrocannabinols" means a substance included in s. 961.14 (4) (t) in any form including tetrahydrocannabinols contained in marijuana, obtained from marijuana or chemically synthesized.

AB224,48 Section 48. Subchapter V (title) of chapter 139 [precedes 139.97] of the statutes is created to read:

AB224,24,23 chapter 139

AB224,24,24 subchapter v

AB224,24,25 marijuana tax and regulation

AB224,49 Section 49. 139.97 of the statutes is created to read:

AB224,25,2 139.97 Definitions. In this subchapter:

AB224,25,4 (1) "Department", if used without further qualification, means the department of revenue.

AB224,25,7 (2) "Lot" means a definite quantity of marijuana or usable marijuana identified by a lot number, every portion or package of which is consistent with the factors that appear in the labeling.

AB224,25,9 (3) "Lot number" means a number that specifies the person who holds a valid license under this subchapter and the harvesting or processing date for each lot.

AB224,25,10 (4) "Marijuana" has the meaning given in s. 961.70 (3).

AB224,25,13 (5) "Marijuana processor" means a person who processes marijuana into usable marijuana, packages and labels usable marijuana for sale in retail outlets, or sells usable marijuana at wholesale to marijuana retailers.

AB224,25,15 (6) "Marijuana producer" means a person who produces marijuana and sells it at wholesale to marijuana processors or other marijuana producers.

AB224,25,17 (8) "Marijuana retailer" means a person who sells usable marijuana at a retail outlet.

AB224,25,19 (9) "Permittee" means a marijuana producer, marijuana processor, or marijuana retailer who is issued a permit under s. 139.972.

AB224,25,21 (10) "Retail outlet" means a location for the retail sale of usable marijuana or marijuana-infused products.

AB224,25,22 (11) "Sales price" has the meaning given in s. 77.51 (15b).

AB224,25,23 (12) "Usable marijuana" means dried marijuana flowers.

AB224,50 Section 50. 139.971 of the statutes is created to read:

AB224,26,3 139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana producer at the rate of 25 percent of the sales price on each wholesale sale in this state of marijuana to a marijuana processor or to another marijuana producer.

AB224,26,6 (b) An excise tax is imposed on a marijuana processor at the rate of 25 percent of the sales price on each wholesale sale in this state of usable marijuana to a marijuana retailer.

AB224,26,8 (c) An excise tax is imposed on a marijuana retailer at the rate of 25 percent of the sales price on each retail sale in this state of usable marijuana.

AB224,26,13 (2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes to the department no later than the 15th day of the month following the month in which the person's tax liability is incurred and shall include with the payment a return on a form prescribed by the department. The department shall deposit all taxes collected under this section into the marijuana fund.

AB224,51 Section 51. 139.972 of the statutes is created to read:

AB224,26,18 139.972 Permits required. (1) (a) No person may operate in this state as a marijuana producer, marijuana processor, or marijuana retailer without first filing an application for and obtaining the proper permit from the department to perform such operations.

AB224,26,21 (b) This section applies to all officers, directors, agents, and stockholders holding 5 percent or more of the stock of any corporation applying for a permit under this section.

AB224,26,23 (c) Subject to ss. 111.321, 111.322, and 111.335, no permit under this section may be granted to any person to whom any of the following applies:

AB224,26,25 1. The person has been convicted of a misdemeanor, not involving chs. 340 to 349, at least 3 times.

AB224,27,1 2. The person has been convicted of a felony, unless pardoned.

AB224,27,3 3. During the preceding 3 years, the person has been committed under s. 51.20 for being drug dependent.

AB224,27,8 4. The person chronically and habitually uses alcohol beverages or other substances to the extent that his or her normal faculties are impaired. A person is presumed chronically and habitually to use alcohol beverages or other substances to the extent that his or her normal faculties are impaired if, within the preceding 3 years, any of the following applies:

AB224,27,10 a. The person has been committed for involuntary treatment under s. 51.45 (13).

AB224,27,11 b. The person has been convicted of a violation of s. 941.20 (1) (b).

AB224,27,21 c. In 2 or more cases arising out of separate incidents, a court has found the person to have committed a violation of s. 346.63 or a local ordinance in conformity with that section; a violation of a law of a federally recognized American Indian tribe or band in this state in conformity with s. 346.63; or a violation of the law of another jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while intoxicated, while under the influence of a controlled substance, a controlled substance analog, or a combination thereof, with an excess or specified range of alcohol concentration, or while under the influence of any drug to a degree that renders the person incapable of safely driving, as those or substantially similar terms are used in that jurisdiction's laws.

AB224,27,23 5. The person has income which comes principally from gambling or has been convicted of 2 or more gambling offenses.

AB224,27,24 6. The person has been guilty of crimes relating to prostitution.

AB224,28,2 7. The person has been guilty of crimes relating to loaning money or anything of value to persons holding licenses or permits pursuant to ch. 125.

AB224,28,3 8. The person is under the age of 21.

AB224,28,5 9. The person has not been a resident of this state continuously for at least 90 days prior to the application date.

AB224,28,13 (d) 1. Before the department issues a new or renewed permit under this section, the department shall give notice of the permit application to the governing body of the municipality where the the permit applicant intends to operate a retail outlet or other premises of a marijuana producer, marijuana processor, or marijuana retailer. No later than 30 days after the department submits the notice, the governing body of the municipality may file with the department a written objection to granting or renewing the permit. At the municipality's request, the department may extend the period for filing objections.

AB224,29,2 2. A written objection filed under subd. 1. shall provide all the facts on which the objection is based. In determining whether to grant or deny a permit for which an objection has been filed under this paragraph, the department shall give substantial weight to objections from a municipality based on chronic illegal activity associated with the premises for which the applicant seeks a permit, the premises of any other operation in this state for which the applicant holds or has held a valid permit or license, the conduct of the applicant's patrons inside or outside the premises of any other operation in this state for which the applicant holds or has held a valid permit or license, and local zoning ordinances. In this subdivision, "chronic illegal activity" means a pervasive pattern of activity that threatens the public health, safety, and welfare of the municipality, including any crime or ordinance violation, and is documented in crime statistics, police reports, emergency medical response data, calls for service, field data, or similar law enforcement agency records.

AB224,29,7 (e) After denying a permit, the department shall immediately notify the applicant in writing of the denial and the reasons for the denial. After making a decision to grant or deny a permit for which a municipality has filed an objection under par. (d), the department shall immediately notify the governing body of the municipality in writing of its decision and the reasons for the decision.

AB224,29,9 (f) 1. The department's denial of a permit under this section is subject to judicial review under ch. 227.

AB224,29,11 2. The department's decision to grant a permit under this section regardless of an objection filed under par. (d) is subject to judicial review under ch. 227.

AB224,29,13 (g) The department shall not issue a permit under this section to any person who does not hold a valid certificate under s. 73.03 (50).

AB224,29,22 (2) Each person who applies for a permit under this section shall submit with the application a $250 fee. Each person who is granted a permit under this section shall annually pay to the department a $1,000 fee for as long as the person holds a valid permit under this section. A permit issued under this section is valid for one year and may be renewed, except that the department may revoke or suspend a permit prior to its expiration. A person is not entitled to a refund of the fees paid under this subsection if the person's permit is denied, revoked, or suspended. The department shall deposit the fees collected under this subsection into the marijuana fund.

AB224,30,2 (3) The department may not issue a permit under this section to operate any premises which are within 1,000 feet of the perimeter of the grounds of any elementary or secondary school, playground, recreation facility, child care facility, public park, public transit facility, or library.

AB224,30,11 (4) Under this section, a separate permit is required for and issued to each class of permittee and the permit holder shall perform only the operations authorized by the permit. A permit issued under this section is not transferrable from one person to another or from one premises to another. A separate permit is required for each place in this state where the operations of a marijuana producer, marijuana processor, or marijuana retailer occur, including each retail outlet. No person who has been issued a permit to operate as a marijuana retailer, or who has any direct or indirect financial interest in the operation of a marijuana retailer, shall be issued a permit to operate as a marijuana producer or marijuana processor.

AB224,30,13 (5) Each person issued a permit under this section shall post the permit in a conspicuous place on the premises to which the permit relates.

AB224,52 Section 52. 139.973 of the statutes is created to read:

AB224,30,16 139.973 Regulation. (1) No permittee may employ a person who is under the age of 21 to work in the business to which the permit relates.

AB224,30,18 (2) A retail outlet shall sell no products or services other than usable marijuana or paraphernalia intended for the storage or use of usable marijuana.

AB224,30,20 (3) No marijuana retailer may allow a person who is under the age of 21 to enter or be on the premises of a retail outlet in violation of s. 961.71 (2m).

AB224,30,23 (4) The maximum amount of usable marijuana that a retail outlet may sell to an individual consumer in a single transaction may not exceed the permissible amount under s. 961.70 (5).

AB224,31,2 (5) No marijuana retailer may display any signage in a window, on a door, or on the outside of the premises of a retail outlet that is visible to the general public from a public right-of-way, other than a single sign that is no larger than 1,600 square inches identifying the retail outlet by the permittee's business or trade name.

AB224,31,4 (6) No marijuana retailer may display usable marijuana in a manner that is visible to the general public from a public right-of-way.

AB224,31,6 (7) No marijuana retailer or employee of a retail outlet may consume, or allow to be consumed, any usable marijuana on the premises of the retail outlet.

AB224,31,10 (8) Except as provided under sub. (5), no marijuana producer, marijuana processor, or marijuana retailer may place or maintain, or cause to be placed or maintained, an advertisement of usable marijuana in any form or through any medium.

AB224,31,19 (9) (a) On a schedule determined by the department, every marijuana producer and marijuana processor shall submit representative samples of the marijuana and usable marijuana produced or processed by the marijuana producer or marijuana processor to a testing laboratory registered under s. 50.66 for testing marijuana and usable marijuana in order to certify that the marijuana and usable marijuana comply with standards prescribed by the department by rule, including testing for potency and for mold, fungus, pesticides, and other contaminants. The laboratory testing the sample shall destroy any part of the sample that remains after the testing.

AB224,31,22 (b) Marijuana producers and marijuana processors shall submit the results of the testing provided under par. (a) to the department in the manner prescribed by the department by rule.

AB224,32,3 (c) If a representative sample inspected and tested under par. (a) does not meet the standards prescribed by the department, the department shall take the necessary action to ensure that the entire lot from which the sample was taken is destroyed. The department shall promulgate rules to determine lots and lot numbers for purposes of this subsection and for the reporting of lots and lot numbers to the department.

AB224,32,7 (10) A marijuana processor shall affix a label to all usable marijuana that the marijuana processor sells to marijuana retailers. The label shall specify the ingredients and the concentration of tetrahydrocannabinols in the usable marijuana.

AB224,32,9 (11) (a) No permittee may sell marijuana or usable marijuana that contains more than 3 parts tetrahydrocannabinols to one part cannabidiol.

AB224,32,13 (b) No permittee may sell marijuana or usable marijuana that tests positive under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the contaminants, or level of contaminants, are identified by a testing laboratory to be potentially unsafe to the consumer.

AB224,32,17 (12) Immediately after beginning employment with a marijuana retailer, every employee of a marijuana retailer shall receive training, approved by the department, on the safe handling of usable marijuana offered for sale and on security and inventory accountability procedures related to such sales.