2017 - 2018 LEGISLATURE
March 20, 2017 - Introduced by Representatives Anderson, Sargent, Sinicki,
Billings, Subeck, Hesselbein, Ohnstad, Berceau, Crowley, Pope, Doyle, C.
and Zepnick, cosponsored by Senators C. Larson, Wirch, Vinehout
and Hansen. Referred to Committee on State Affairs.
AB158,1,7 1An Act to repeal 961.34 (2) (b); to renumber subchapter XIV of chapter 440
2[precedes 440.99] and 961.32; to renumber and amend 961.34 (2) (a); to
450.03 (1) (e), 961.14 (4) (t), 961.38 (1n) and 961.52 (2) (a) 1. and 2.; and
4to create 440.08 (2) (a) 20r., subchapter XIV of chapter 440 [precedes 440.989],
5450.07 (2m), 450.071 (1m) and 961.32 (2m) of the statutes; relating to:
6production and possession of cannabidiol for treatment of a medical condition
7and providing a penalty.
Analysis by the Legislative Reference Bureau
This bill establishes a licensure program administered by the Department of
Safety and Professional Services for producers of cannabidiol. Under the bill, a
person may possess tetrahydrocannabinols to produce CBD oil, and may produce
CBD oil and deliver it, only if the person is licensed by DSPS and only if the CBD oil
is produced in a form without a psychoactive effect for the treatment of a medical
The bill also makes certain changes to the requirements for possessing CBD oil
and dispensing it to patients. Current law designates THC as a schedule I controlled
substance and defines THC to exclude CBD oil in a form without a psychoactive effect
that is dispensed by a pharmacy or physician approved by the Controlled Substances
Board to treat a seizure disorder or that is possessed by a person with documentation

from a physician that the CBD oil is to treat a seizure disorder. Under the bill, THC
does not include CBD oil in a form without a psychoactive effect without regard to
who dispenses it or possesses it. The bill also specifies that any person may possess
CBD oil to treat a medical condition and that any pharmacy or physician may
dispense CBD oil to treat a medical condition.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB158,1 1Section 1. 440.08 (2) (a) 20r. of the statutes is created to read:
AB158,2,22 440.08 (2) (a) 20r. Cannabidiol producer: June 1 of each odd-numbered year.
AB158,2 3Section 2. Subchapter XIV of chapter 440 [precedes 440.989] of the statutes
4is created to read:
AB158,2,55 chapter 440
AB158,2,76 subchapter XIv
7 cannabidiol producers
AB158,2,9 8440.989 Definition. In this subchapter, “licensed producer" means a
9cannabidiol producer licensed under s. 440.9892.
AB158,2,11 10440.9891 License required. (1) No person may engage in the production of
11cannabidiol in this state unless the person is a licensed producer.
AB158,2,14 12(2) A person need not be a licensed producer to engage in an activity that is
13within the scope of another valid state or federal license, permit, registration, or
AB158,2,16 15440.9892 Licensure; renewal. (1) The department shall grant a license to
16engage in the production of cannabidiol to a person who does all of the following:
AB158,2,1717 (a) Submits an application for licensure on a form provided by the department.
AB158,2,1818 (b) Pays the fee specified in s. 440.05 (1).
1(c) Satisfies all other requirements established by the department by rule.
AB158,3,5 2(2) The renewal date for a license granted under sub. (1) is specified in s. 440.08
3(2) (a). A renewal application shall be submitted to the department on a form
4provided by the department and shall include the renewal fee determined by the
5department under s. 440.03 (9) (a).
AB158,3,8 6440.9893 Production and delivery. A licensed producer may produce
7cannabidiol and may deliver cannabidiol to any other person if all of the following
8conditions are satisfied:
AB158,3,9 9(1) The cannabidiol is in a form without a psychoactive effect.
AB158,3,10 10(2) The cannabidiol is for the treatment of a medical condition.
AB158,3,15 11440.9894 Disciplinary proceedings and actions. (1) Subject to the rules
12promulgated under s. 440.03 (1), the department may conduct investigations and
13hold hearings to determine whether a violation of this subchapter or a rule
14promulgated under this subchapter or a violation of another law that substantially
15relates to the production of cannabidiol has occurred.
AB158,3,19 16(2) Subject to the rules promulgated under s. 440.03 (1), the department may
17reprimand a licensed producer or deny, limit, suspend, or revoke a license granted
18under s. 440.9892 if the department finds that an applicant for licensure or a licensed
19producer has done any of the following:
AB158,3,2120 (a) Intentionally made a material misstatement in an application for a license
21or license renewal.
AB158,3,2222 (b) Advertised in a manner that is false or misleading.
AB158,3,2323 (c) Obtained or attempted to obtain compensation through fraud or deceit.
1(d) Violated this subchapter or a rule promulgated under this subchapter or
2violated another law that substantially relates to the production or delivery of
AB158,4,6 4(3) In addition to or in lieu of a reprimand or other action under sub. (2), the
5department may assess against a licensed provider, for the violations enumerated
6under sub. (2), a forfeiture of not more than $1,000 for each separate offense.
AB158,4,9 7440.9895 Penalties. Any person who violates this subchapter or any rule
8promulgated under this subchapter may be fined not more than $1,000 or imprisoned
9for not more than 90 days or both.
AB158,3 10Section 3. Subchapter XIV of chapter 440 [precedes 440.99] of the statutes is
11renumbered subchapter XV of chapter 440 [precedes 440.99].
AB158,4 12Section 4. 450.03 (1) (e) of the statutes is amended to read:
AB158,4,1913 450.03 (1) (e) Any person lawfully practicing within the scope of a license,
14permit, registration, certificate, or certification granted to provide home medical
15oxygen under s. 450.076, to produce cannabidiol under subch. XIV of ch. 440, to
16practice professional or practical nursing or nurse-midwifery under ch. 441, to
17practice dentistry or dental hygiene under ch. 447, to practice medicine and surgery
18under ch. 448, to practice optometry under ch. 449, or to practice veterinary medicine
19under ch. 89, or as otherwise provided by statute.
AB158,5 20Section 5. 450.07 (2m) of the statutes is created to read:
AB158,4,2221 450.07 (2m) No license under this section is required for a cannabidiol producer
22licensed under s. 440.9892 acting within the scope of that license.
AB158,6 23Section 6. 450.071 (1m) of the statutes is created to read:
AB158,4,2524 450.071 (1m) The board shall exempt a cannabidiol producer licensed under
25s. 440.9892 from the licensing and other requirements under this section.
1Section 7. 961.14 (4) (t) of the statutes is amended to read:
AB158,5,62 961.14 (4) (t) Tetrahydrocannabinols, commonly known as “THC", in any form
3including tetrahydrocannabinols contained in marijuana, obtained from marijuana,
4or chemically synthesized, except that tetrahydrocannabinols do not include
5cannabidiol in a form without a psychoactive effect that is dispensed or documented
6as provided in s. 961.38 (1n)
AB158,8 7Section 8. 961.32 of the statutes is renumbered 961.32 (1m).
AB158,9 8Section 9. 961.32 (2m) of the statutes is created to read:
AB158,5,139 961.32 (2m) A cannabidiol producer licensed under s. 440.9892 may possess
10tetrahydrocannabinols if the possession is only for the purpose of producing
11cannabidiol in a form without a psychoactive effect for the treatment of a medical
12condition. Any person may possess cannabidiol in a form without a psychoactive
13effect if the possession is for the treatment of a medical condition.
AB158,10 14Section 10. 961.34 (2) (a) of the statutes is renumbered 961.34 (2) and
15amended to read:
AB158,5,2116 961.34 (2) Upon the request of any physician, the controlled substances board
17shall aid the physician in applying for and processing an investigational drug permit
18under 21 USC 355 (i) for cannabidiol as treatment for a seizure disorder. If the
19federal food and drug administration issues an investigational drug permit, the
20controlled substances board shall approve which pharmacies and physicians may
21dispense cannabidiol to patients
medical condition.