AB224,31,4 3(6) No marijuana retailer may display usable marijuana in a manner that is
4visible to the general public from a public right-of-way.
AB224,31,6 5(7) No marijuana retailer or employee of a retail outlet may consume, or allow
6to be consumed, any usable marijuana on the premises of the retail outlet.
AB224,31,10 7(8) Except as provided under sub. (5), no marijuana producer, marijuana
8processor, or marijuana retailer may place or maintain, or cause to be placed or
9maintained, an advertisement of usable marijuana in any form or through any
10medium.
AB224,31,19 11(9) (a) On a schedule determined by the department, every marijuana producer
12and marijuana processor shall submit representative samples of the marijuana and
13usable marijuana produced or processed by the marijuana producer or marijuana
14processor to a testing laboratory registered under s. 50.66 for testing marijuana and
15usable marijuana in order to certify that the marijuana and usable marijuana
16comply with standards prescribed by the department by rule, including testing for
17potency and for mold, fungus, pesticides, and other contaminants. The laboratory
18testing the sample shall destroy any part of the sample that remains after the
19testing.
AB224,31,2220 (b) Marijuana producers and marijuana processors shall submit the results of
21the testing provided under par. (a) to the department in the manner prescribed by
22the department by rule.
AB224,32,323 (c) If a representative sample inspected and tested under par. (a) does not meet
24the standards prescribed by the department, the department shall take the
25necessary action to ensure that the entire lot from which the sample was taken is

1destroyed. The department shall promulgate rules to determine lots and lot
2numbers for purposes of this subsection and for the reporting of lots and lot numbers
3to the department.
AB224,32,7 4(10) A marijuana processor shall affix a label to all usable marijuana that the
5marijuana processor sells to marijuana retailers. The label shall specify the
6ingredients and the concentration of tetrahydrocannabinols in the usable
7marijuana.
AB224,32,9 8(11) (a) No permittee may sell marijuana or usable marijuana that contains
9more than 3 parts tetrahydrocannabinols to one part cannabidiol.
AB224,32,1310 (b) No permittee may sell marijuana or usable marijuana that tests positive
11under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the
12contaminants, or level of contaminants, are identified by a testing laboratory to be
13potentially unsafe to the consumer.
AB224,32,17 14(12) Immediately after beginning employment with a marijuana retailer, every
15employee of a marijuana retailer shall receive training, approved by the department,
16on the safe handling of usable marijuana offered for sale and on security and
17inventory accountability procedures related to such sales.
AB224,53 18Section 53. 139.974 of the statutes is created to read:
AB224,32,25 19139.974 Records and reports. (1) Every permittee shall keep accurate and
20complete records of the production and sales of marijuana and usable marijuana in
21this state. The records shall be kept on the premises described in the permit and in
22such manner as to ensure permanency and accessibility for inspection at reasonable
23hours by the department's authorized personnel. The department shall prescribe
24reasonable and uniform methods of keeping records and making reports and shall
25provide the necessary forms to permittees.
AB224,33,10
1(2) If the department determines that any permittee's records are not kept in
2the prescribed form or are in such condition that the department requires an unusual
3amount of time to determine from the records the amount of the tax due, the
4department shall give notice to the permittee that the permittee is required to revise
5the permittee's records and keep them in the prescribed form. If the permittee fails
6to comply within 30 days, the permittee shall pay the expenses reasonably
7attributable to a proper examination and tax determination at the rate of $30 a day
8for each auditor used to make the examination and determination. The department
9shall send a bill for such expenses and the permittee shall pay the amount of such
10bill within 10 days.
AB224,33,20 11(3) If any permittee fails to file a report when due, the permittee shall be
12required to pay a late filing fee of $10. A report that is mailed is filed on time if it is
13mailed in a properly addressed envelope with postage prepaid, the envelope is
14officially postmarked, or marked or recorded electronically as provided under section
157502 (f) (2) (c) of the Internal Revenue Code, on the date due, and the report is
16actually received by the department or at the destination that the department
17prescribes within 5 days of the due date. A report that is not mailed is timely if it
18is received on or before the due date by the department or at the destination that the
19department prescribes. For purposes of this subsection, "mailed" includes delivery
20by a delivery service designated under section 7502 (f) of the Internal Revenue Code.
AB224,33,25 21(4) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating
22to confidentiality of income, franchise, and gift tax returns, apply to any information
23obtained from any permittee under this subchapter on a tax return, report, schedule,
24exhibit, or other document or from an audit report relating to any of those documents,
25except that the department of revenue shall publish production and sales statistics.
AB224,54
1Section 54. 139.975 of the statutes is created to read:
AB224,34,4 2139.975 Administration and enforcement. (1) The department shall
3administer and enforce this subchapter and promulgate rules necessary to
4administer and enforce this subchapter.
AB224,34,6 5(2) The duly authorized employees of the department have all necessary police
6powers to prevent violations of this subchapter.
AB224,34,13 7(3) Authorized personnel of the department of justice and the department of
8revenue, and any law enforcement officer, within their respective jurisdictions, may
9at all reasonable hours enter the premises of any permittee and examine the books
10and records to determine whether the tax imposed by this subchapter has been fully
11paid and may enter and inspect any premises where marijuana or usable marijuana
12is produced, processed, made, sold, or stored to determine whether the permittee is
13complying with this subchapter.
AB224,34,17 14(4) The department may suspend or revoke the permit of any permittee who
15violates s. 100.30, any provision of this subchapter, or any rules promulgated under
16sub. (1). The department shall revoke the permit of any permittee who violates s.
17100.30 3 or more times within a 5-year period.
AB224,34,25 18(5) No suit shall be maintained in any court to restrain or delay the collection
19or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax
20when due and, if paid under protest, may at any time within 90 days from the date
21of payment sue the state to recover the tax paid. If it is finally determined that any
22part of the tax was wrongfully collected, the secretary of administration shall pay the
23amount wrongfully collected out of the marijuana fund. A separate suit need not be
24filed for each separate payment made by any taxpayer, but a recovery may be had
25in one suit for as many payments as may have been made.
AB224,35,6
1(6) (a) Any person may be compelled to testify in regard to any violation of this
2subchapter of which the person may have knowledge, even though such testimony
3may tend to incriminate the person, upon being granted immunity from prosecution
4in connection with the testimony, and upon the giving of such testimony, the person
5shall not be prosecuted because of the violation relative to which the person has
6testified.
AB224,35,87 (b) The immunity provided under par. (a) is subject to the restrictions under
8s. 972.085.
AB224,35,10 9(7) The provisions on timely filing under s. 71.80 (18) apply to the tax imposed
10under this subchapter.
AB224,35,16 11(8) Sections 71.74 (1), (2), (10), (11) and (14), 71.77, 71.91 (1) (a) and (c) and (2)
12to (7), 71.92, and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes
13under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes
14under ch. 71 applies to the collection of the taxes under this subchapter, except that
15the period during which notice of an additional assessment shall be given begins on
16the due date of the report under this subchapter.
AB224,35,20 17(9) Any building or place of any kind where marijuana or usable marijuana is
18sold, possessed, stored, or manufactured without a lawful permit or in violation of
19s. 139.972 or 139.973 is declared a public nuisance and may be closed and abated as
20such.
AB224,35,23 21(10) At the request of the secretary of revenue, the attorney general may
22represent this state or assist a district attorney in prosecuting any case arising under
23this subchapter.
AB224,55 24Section 55. 139.976 of the statutes is created to read:
AB224,36,7
1139.976 Theft of tax moneys. All marijuana tax moneys received by a
2permittee for the sale of marijuana or usable marijuana on which the tax under this
3subchapter has become due and has not been paid are trust funds in the permittee's
4possession and are the property of this state. Any permittee who fraudulently
5withholds, appropriates, or otherwise uses marijuana tax moneys that are the
6property of this state is guilty of theft under s. 943.20 (1), whether or not the
7permittee has or claims to have an interest in those moneys.
AB224,56 8Section 56. 139.977 of the statutes is created to read:
AB224,36,14 9139.977 Seizure and confiscation. (1) All marijuana and usable marijuana
10produced, processed, made, kept, stored, sold, distributed, or transported in violation
11of this subchapter, and all tangible personal property used in connection with the
12marijuana or usable marijuana is unlawful property and subject to seizure by the
13department or a law enforcement officer. Except as provided in sub. (2), all
14marijuana and usable marijuana seized under this subsection shall be destroyed.
AB224,36,23 15(2) If marijuana or usable marijuana on which the tax has not been paid is
16seized as provided under sub. (1), it may be given to law enforcement officers to use
17in criminal investigations or sold to qualified buyers by the department, without
18notice. If the marijuana or usable marijuana is sold, after deducting the costs of
19selling and storing the property, the department shall pay the sale proceeds into the
20marijuana fund. If the department finds that the marijuana or usable marijuana
21may deteriorate or become unfit for use in criminal investigations or for sale, or that
22those uses would otherwise be impractical, the department may order them
23destroyed.
AB224,37,5 24(3) If marijuana or usable marijuana on which the tax has been paid is seized
25as provided under sub. (1), it shall be returned to the true owner if ownership can be

1ascertained and the owner or the owner's agent is not involved in the violation
2resulting in the seizure. If the ownership cannot be ascertained or if the owner or
3the owner's agent was guilty of the violation that resulted in the seizure of the
4marijuana or usable marijuana, it may be sold or otherwise disposed of as provided
5in sub. (2).
AB224,37,25 6(4) If tangible personal property other than marijuana or usable marijuana is
7seized as provided under sub. (1), the department shall advertise the tangible
8personal property for sale by publication of a class 2 notice under ch. 985. If no person
9claiming a lien on, or ownership of, the property has notified the department of the
10person's claim within 10 days after last insertion of the notice, the department shall
11sell the property. If a sale is not practical the department may destroy the property.
12If a person claiming a lien on, or ownership of, the property notifies the department
13within the time prescribed in this subsection, the department may apply to the
14circuit court in the county where the property was seized for an order directing
15disposition of the property or the proceeds from the sale of the property. If the court
16orders the property to be sold, all liens, if any, may be transferred from the property
17to the sale proceeds. Neither the property seized nor the proceeds from the sale shall
18be turned over to any claimant of lien or ownership unless the claimant first
19establishes that the property was not used in connection with any violation under
20this subchapter or that, if so used, it was done without the claimant's knowledge or
21consent and without the claimant's knowledge of facts that should have given the
22claimant reason to believe it would be put to such use. If no claim of lien or ownership
23is established as provided under this subsection the property may be ordered
24destroyed. In case of a sale, the net proceeds after deducting costs, expenses, and
25established claims shall be paid into the marijuana fund.
AB224,57
1Section 57. 139.978 of the statutes is created to read:
AB224,38,6 2139.978 Interest and penalties. (1) Any person who makes or signs any
3false or fraudulent report under this subchapter or who attempts to evade the tax
4imposed by s. 139.971, or who aids in or abets the evasion or attempted evasion of
5that tax, may be fined not more than $10,000 or imprisoned for not more than 9
6months or both.
AB224,38,9 7(2) Any permittee who fails to keep the records required by s. 139.974 (1) and
8(2) shall be fined not less than $100 nor more than $500 or imprisoned not more than
96 months or both.
AB224,38,14 10(3) Any person who refuses to permit the examination or inspection authorized
11under s. 139.975 (3) may be fined not more than $500 or imprisoned not more than
126 months or both. The department shall immediately suspend or revoke the permit
13of any person who refuses to permit the examination or inspection authorized under
14s. 139.975 (3).
AB224,38,17 15(4) Any person who violates any of the provisions of this subchapter for which
16no other penalty is prescribed shall be fined not less than $100 nor more than $1,000
17or imprisoned not less than 10 days nor more than 90 days or both.
AB224,38,20 18(5) Any person who violates any of the rules promulgated in accordance with
19this subchapter shall be fined not less than $100 nor more than $500 or be
20imprisoned not more than 6 months or both.
AB224,38,24 21(6) In addition to the penalties imposed for violating the provisions of this
22subchapter or any of the department's rules, the department shall automatically
23revoke the permit of any person convicted of such a violation and not issue another
24permit to that person for a period of 2 years following the revocation.
AB224,39,4
1(7) Unpaid taxes bear interest at the rate of 12 percent per year from the due
2date of the return until paid or deposited with the department, and all refunded taxes
3bear interest at the rate of 3 percent per year from the due date of the return to the
4date on which the refund is certified on the refund rolls.
AB224,39,6 5(8) All nondelinquent payments of additional amounts owed shall be applied
6in the following order: penalties, interest, tax principal.
AB224,39,9 7(9) Delinquent marijuana taxes bear interest at the rate of 1.5 percent per
8month until paid. The taxes imposed by this subchapter shall become delinquent if
9not paid:
AB224,39,1110 (a) In the case of a timely filed return, no return filed or a late return, on or
11before the due date of the return.
AB224,39,1312 (b) In the case of a deficiency determination of taxes, within 2 months after the
13date of demand.
AB224,39,17 14(10) If due to neglect an incorrect return is filed, the entire tax finally
15determined is subject to a penalty of 25 percent of the tax exclusive of interest or
16other penalty. A person filing an incorrect return has the burden of proving that the
17error or errors were due to good cause and not due to neglect.
AB224,58 18Section 58. 139.979 of the statutes is created to read:
AB224,39,25 19139.979 Personal-use permits. (1) No individual may grow marijuana in
20this state for his or her personal use without first filing an application for and
21obtaining a permit from the department. An individual who holds a valid permit
22under this section and possesses no more than 12 marijuana plants at any one time
23is not subject to the tax imposed under s. 139.971. An individual who possesses more
24than 12 marijuana plants at any one time shall apply for the appropriate permit
25under s. 139.972 and pay the appropriate tax imposed under s. 139.971.
AB224,40,4
1(2) Each individual who applies for a permit under this section shall submit
2with the application a $250 fee. A permit issued under this section is valid for one
3year and may be renewed, except that the department may revoke or suspend a
4permit prior to its expiration for any violation of this subchapter.
AB224,59 5Section 59. 139.980 of the statutes is created to read:
AB224,40,14 6139.980 Survey. At least once every 2 years, the department of health services
7shall conduct a survey of all residents of this state to determine the effects of this
8subchapter on marijuana use in this state. The survey shall include questions
9regarding the procurement and use of marijuana in this state and attitudes towards
10substance use laws. The department of health services shall conduct the first survey
11under this section no later than 6 months after the effective date of this section ....
12[LRB inserts date]. The department of health services shall submit the results of any
13survey conducted under this section to the legislature, as provided under s. 13.172
14(2), and to the department of revenue.
AB224,60 15Section 60. 146.40 (1) (bo) of the statutes is amended to read:
AB224,40,1716 146.40 (1) (bo) "Hospice" means a hospice that is licensed under subch. IV VI
17of ch. 50.
AB224,61 18Section 61. 146.44 of the statutes is created to read:
AB224,40,20 19146.44 Medical Marijuana Registry Program. (1) Definitions. In this
20section:
AB224,40,2221 (a) "Applicant" means a person who is applying for a registry identification card
22under sub. (2) (a).
AB224,40,2423 (b) "Debilitating medical condition or treatment" has the meaning given in s.
2450.60 (2).
AB224,41,2
1(c) "Medical use of tetrahydrocannabinols" has the meaning given in s. 50.60
2(4).
AB224,41,53 (d) "Out-of-state registry identification card" means a document issued by an
4entity listed in the rule promulgated under sub. (7) (f) that identifies the person as
5a qualifying patient or primary caregiver, or an equivalent designation.
AB224,41,66 (e) "Primary caregiver" has the meaning given in s. 50.60 (5).
AB224,41,77 (f) "Qualifying patient" has the meaning given in s. 50.60 (6).
AB224,41,98 (g) "Registrant" means a person to whom a registry identification card is issued
9under sub. (4).
AB224,41,1210 (h) "Registry identification card" means a document issued by the department
11under this section that identifies a person as a qualifying patient or primary
12caregiver.
AB224,41,1313 (i) "Written certification" has the meaning given in s. 50.60 (10).
AB224,41,16 14(2) Application. (a) An adult who is claiming to be a qualifying patient may
15apply for a registry identification card by submitting to the department a signed
16application form containing or accompanied by all of the following:
AB224,41,1717 1. His or her name, address, and date of birth.
AB224,41,1818 2. A written certification.
AB224,41,2019 3. The name, address, and telephone number of the person's current physician,
20as listed in the written certification.
AB224,41,2221 4. A registration fee in an amount determined by the department, but not to
22exceed $150.
AB224,42,323 (b) An adult registrant who is a qualifying patient or an applicant may jointly
24apply with another adult to the department for a registry identification card for the
25other adult, designating the other adult as a primary caregiver for the registrant or

1applicant. Both persons who jointly apply for a registry identification card under this
2paragraph shall sign the application form, which shall contain the name, address,
3and date of birth of the individual applying to be registered as a primary caregiver.
AB224,42,74 (c) The department shall promulgate rules specifying how a parent, guardian,
5or person having legal custody of a child may apply for a registry identification card
6for himself or herself and for the child and the circumstances under which the
7department may approve or deny the application.
AB224,42,13 8(3) Processing the application. The department shall verify the information
9contained in or accompanying an application submitted under sub. (2) and shall
10approve or deny the application within 30 days after receiving it. Except as provided
11in sub. (2) (c), the department may deny an application submitted under sub. (2) only
12if the required information has not been provided or if false information has been
13provided.
AB224,42,19 14(4) Issuing a registry identification card. The department shall issue to the
15applicant a registry identification card within 5 days after approving an application
16under sub. (3). Unless voided under sub. (5) (b) or (c) or revoked under rules issued
17by the department under sub. (7) (d), a registry identification card shall expire 2
18years from the date of issuance. A registry identification card shall contain all of the
19following:
AB224,42,2020 (a) The name, address, and date of birth of all of the following:
AB224,42,2121 1. The registrant.
AB224,42,2222 2. Each primary caregiver, if the registrant is a qualifying patient.
AB224,42,2323 3. The qualifying patient, if the registrant is a primary caregiver.
AB224,42,2424 (b) The date of issuance and expiration date of the registry identification card.
AB224,42,2525 (c) A photograph of the registrant.
AB224,43,1
1(d) Other information the department may require by rule.
AB224,43,8 2(5) Additional information to be provided by registrant. (a) 1. An adult
3registrant shall notify the department of any change in the registrant's name and
4address. An adult registrant who is a qualifying patient shall notify the department
5of any change in his or her physician, of any significant improvement in his or her
6health as it relates to his or her debilitating medical condition or treatment, and if
7a registered primary caregiver no longer assists the registrant with the medical use
8of tetrahydrocannabinols.
AB224,43,129 2. If a qualifying patient is a child, a primary caregiver for the child shall
10provide the department with any information that the child, if he or she were an
11adult, would have to provide under subd. 1. within 10 days after the date of the
12change to which the information relates.
AB224,43,1713 (b) If a registrant fails to notify the department within 10 days after any change
14for which notification is required under par. (a) 1., his or her registry identification
15card is void. If a registrant fails to comply with par. (a) 2., the registry identification
16card for the qualifying patient to whom the information under par. (a) 2. relates is
17void.
AB224,43,2118 (c) If a qualifying patient's registry identification card becomes void under par.
19(b), the registry identification card for each of the qualifying patient's primary
20caregivers is void. The department shall send written notice of this fact to each such
21primary caregiver.
AB224,43,22 22(6) Records. (a) The department shall maintain a list of all registrants.
AB224,43,2523 (b) Notwithstanding s. 19.35 and except as provided in par. (c), the department
24may not disclose information from an application submitted or a registry
25identification card issued under this section.
AB224,44,4
1(c) The department may disclose to state or local law enforcement agencies
2information from an application submitted by, or from a registry identification card
3issued to, a specific person under this section, for the purpose of verifying that the
4person possesses a valid registry identification card.
AB224,44,6 5(7) Rules. The department shall promulgate rules to implement this section,
6including the rules required under sub. (2) (c) and rules doing all of the following:
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