AB482,35,19 16(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
17to the department no later than the 15th day of the month following the month in
18which the person's tax liability is incurred and shall include with the payment a
19return on a form prescribed by the department.
AB482,35,22 20(3) For purposes of this section, a marijuana producer may not sell marijuana
21directly to a marijuana distributor or marijuana retailer and a marijuana retailer
22may purchase usable marijuana for resale only from a marijuana distributor.
AB482,63 23Section 63. 139.972 of the statutes is created to read:
AB482,36,4 24139.972 Permits required. (1) (a) No person may operate in this state as a
25marijuana producer, marijuana processor, marijuana distributor, or marijuana

1retailer without first filing an application for and obtaining the proper permit from
2the department to perform such operations. In addition, no person may operate in
3this state as a marijuana producer or marijuana processor without first filing an
4application for and obtaining the proper permit under s. 94.55.
AB482,36,75 (b) This section applies to all officers, directors, agents, and stockholders
6holding 5 percent or more of the stock of any corporation applying for a permit under
7this section.
AB482,36,98 (c) Subject to ss. 111.321, 111.322, and 111.335, no permit under this section
9may be granted to any person to whom any of the following applies:
AB482,36,1110 1. The person has been convicted of a violent misdemeanor, as defined in s.
11941.29 (1g) (b), at least 3 times.
AB482,36,1312 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g)
13(a), unless pardoned.
AB482,36,1514 3. During the preceding 3 years, the person has been committed under s. 51.20
15for being drug dependent.
AB482,36,2016 4. The person chronically and habitually uses alcohol beverages or other
17substances to the extent that his or her normal faculties are impaired. A person is
18presumed to chronically and habitually use alcohol beverages or other substances to
19the extent that his or her normal faculties are impaired if, within the preceding 3
20years, any of the following applies:
AB482,36,2221 a. The person has been committed for involuntary treatment under s. 51.45
22(13).
AB482,36,2323 b. The person has been convicted of a violation of s. 941.20 (1) (b).
AB482,37,824 c. In 2 or more cases arising out of separate incidents, a court has found the
25person to have committed a violation of s. 346.63 or a local ordinance in conformity

1with that section; a violation of a law of a federally recognized American Indian tribe
2or band in this state in conformity with s. 346.63; or a violation of the law of another
3jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while
4intoxicated, while under the influence of a controlled substance, a controlled
5substance analog, or a combination thereof, with an excess or specified range of
6alcohol concentration, or while under the influence of any drug to a degree that
7renders the person incapable of safely driving, as those or substantially similar
8terms are used in that jurisdiction's laws.
AB482,37,109 5. The person has income which comes principally from gambling or has been
10convicted of 2 or more gambling offenses.
AB482,37,1111 6. The person has been guilty of crimes relating to prostitution.
AB482,37,1312 7. The person has been guilty of crimes relating to loaning money or anything
13of value to persons holding licenses or permits pursuant to ch. 125.
AB482,37,1414 8. The person is under the age of 21.
AB482,37,1615 9. The person has not been a resident of this state continuously for at least 90
16days prior to the application date.
AB482,37,2417 (d) 1. Before the department issues a new or renewed permit under this section,
18the department shall give notice of the permit application to the governing body of
19the municipality where the the permit applicant intends to operate the premises of
20a marijuana producer, marijuana processor, marijuana distributor, or marijuana
21retailer. No later than 30 days after the department submits the notice, the
22governing body of the municipality may file with the department a written objection
23to granting or renewing the permit. At the municipality's request, the department
24may extend the period for filing objections.
AB482,38,13
12. A written objection filed under subd. 1. shall provide all the facts on which
2the objection is based. In determining whether to grant or deny a permit for which
3an objection has been filed under this paragraph, the department shall give
4substantial weight to objections from a municipality based on chronic illegal activity
5associated with the premises for which the applicant seeks a permit, the premises
6of any other operation in this state for which the applicant holds or has held a valid
7permit or license, the conduct of the applicant's patrons inside or outside the
8premises of any other operation in this state for which the applicant holds or has held
9a valid permit or license, and local zoning ordinances. In this subdivision, “ chronic
10illegal activity" means a pervasive pattern of activity that threatens the public
11health, safety, and welfare of the municipality, including any crime or ordinance
12violation, and is documented in crime statistics, police reports, emergency medical
13response data, calls for service, field data, or similar law enforcement agency records.
AB482,38,1814 (e) After denying a permit, the department shall immediately notify the
15applicant in writing of the denial and the reasons for the denial. After making a
16decision to grant or deny a permit for which a municipality has filed an objection
17under par. (d), the department shall immediately notify the governing body of the
18municipality in writing of its decision and the reasons for the decision.
AB482,38,2019 (f) 1. The department's denial of a permit under this section is subject to judicial
20review under ch. 227.
AB482,38,2221 2. The department's decision to grant a permit under this section regardless of
22an objection filed under par. (d) is subject to judicial review under ch. 227.
AB482,38,2423 (g) The department shall not issue a permit under this section to any person
24who does not hold a valid certificate under s. 73.03 (50).
AB482,39,7
1(2) Each person who applies for a permit under this section shall submit with
2the application a $250 fee. Each person who is granted a permit under this section
3shall annually pay to the department a $2,000 fee for as long as the person holds a
4valid permit under this section. A permit issued under this section is valid for one
5year and may be renewed, except that the department may revoke or suspend a
6permit prior to its expiration. A person is not entitled to a refund of the fees paid
7under this subsection if the person's permit is denied, revoked, or suspended.
AB482,39,11 8(3) The department may not issue a permit under this section to operate any
9premises which are within 500 feet of the perimeter of the grounds of any elementary
10or secondary school, playground, recreation facility, child care facility, public park,
11public transit facility, or library.
AB482,39,21 12(4) Under this section, a separate permit is required for and issued to each class
13of permittee and the permit holder shall perform only the operations authorized by
14the permit. A permit issued under this section is not transferable from one person
15to another or from one premises to another. A separate permit is required for each
16place in this state where the operations of a marijuana producer, marijuana
17processor, marijuana distributor, or marijuana retailer occur, including each retail
18outlet. No person who has been issued a permit to operate as a marijuana retailer,
19or who has any direct or indirect financial interest in the operation of a marijuana
20retailer, shall be issued a permit to operate as a marijuana producer, marijuana
21processor, or marijuana distributor.
AB482,39,23 22(5) Each person issued a permit under this section shall post the permit in a
23conspicuous place on the premises to which the permit relates.
AB482,64 24Section 64. 139.973 of the statutes is created to read:
AB482,40,2
1139.973 Regulation. (1) (a) No permittee may employ an individual who is
2under the age of 21 to work in the business to which the permit relates.
AB482,40,53 (b) Subject to ss. 111.321, 111.322, and 111.335, no permittee may employ an
4individual if any of the conditions under s. 139.972 (1) (c) 1. to 7. apply to the
5individual.
AB482,40,7 6(2) A retail outlet shall sell no products or services other than usable marijuana
7or paraphernalia intended for the storage or use of usable marijuana.
AB482,40,9 8(3) No marijuana retailer may allow a person who is under the age of 21 to enter
9or be on the premises of a retail outlet in violation of s. 961.71 (2m).
AB482,40,12 10(4) The maximum amount of usable marijuana that a retail outlet may sell to
11an individual consumer in a single transaction may not exceed the permissible
12amount under s. 961.70 (5).
AB482,40,15 13(4m) A marijuana retailer may not collect, retain, or distribute personal
14information regarding the retailer's customers except that which is necessary to
15complete a sale of usable marijuana.
AB482,40,19 16(5) No marijuana retailer may display any signage in a window, on a door, or
17on the outside of the premises of a retail outlet that is visible to the general public
18from a public right-of-way, other than a single sign that is no larger than 1,600
19square inches identifying the retail outlet by the permittee's business or trade name.
AB482,40,21 20(6) No marijuana retailer may display usable marijuana in a manner that is
21visible to the general public from a public right-of-way.
AB482,40,23 22(7) No marijuana retailer or employee of a retail outlet may consume, or allow
23to be consumed, any usable marijuana on the premises of the retail outlet.
AB482,40,25 24(7m) A marijuana retailer may operate a retail outlet only between the hours
25of 8 a.m. and 8 p.m.
AB482,41,4
1(8) Except as provided under sub. (5), no marijuana producer, marijuana
2processor, marijuana distributor, or marijuana retailer may place or maintain, or
3cause to be placed or maintained, an advertisement of usable marijuana in any form
4or through any medium.
AB482,41,13 5(9) (a) On a schedule determined by the department, every marijuana producer
6and marijuana processor shall submit representative samples of the marijuana and
7usable marijuana produced or processed by the marijuana producer or marijuana
8processor to a testing laboratory registered under s. 50.86 for testing marijuana and
9usable marijuana in order to certify that the marijuana and usable marijuana
10comply with standards prescribed by the department by rule, including testing for
11potency and for mold, fungus, pesticides, and other contaminants. The laboratory
12testing the sample shall destroy any part of the sample that remains after the
13testing.
AB482,41,1614 (b) Marijuana producers and marijuana processors shall submit the results of
15the testing provided under par. (a) to the department in the manner prescribed by
16the department by rule.
AB482,41,2217 (c) If a representative sample inspected and tested under par. (a) does not meet
18the standards prescribed by the department, the department shall take the
19necessary action to ensure that the entire lot from which the sample was taken is
20destroyed. The department shall promulgate rules to determine lots and lot
21numbers for purposes of this subsection and for the reporting of lots and lot numbers
22to the department.
AB482,42,2 23(10) (a) A marijuana processor shall affix a label to all usable marijuana that
24the marijuana processor sells to marijuana distributors. The label shall specify the

1ingredients and the concentration of tetrahydrocannabinols in the usable
2marijuana.
AB482,42,63 (b) No marijuana processor may make usable marijuana using marijuana
4grown outside of this state. The label on each package of usable marijuana sold in
5this state before January 1, 2023, shall indicate that the usable marijuana is made
6in this state.
AB482,42,8 7(11) (a) No permittee may sell marijuana or usable marijuana that contains
8more than 3 parts tetrahydrocannabinols to one part cannabidiol.
AB482,42,129 (b) No permittee may sell marijuana or usable marijuana that tests positive
10under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the
11contaminants, or level of contaminants, are identified by a testing laboratory to be
12potentially unsafe to the consumer.
AB482,42,16 13(12) Immediately after beginning employment with a marijuana retailer, every
14employee of a marijuana retailer shall receive training, approved by the department,
15on the safe handling of usable marijuana offered for sale and on security and
16inventory accountability procedures related to such sales.
AB482,65 17Section 65. 139.974 of the statutes is created to read:
AB482,42,24 18139.974 Records and reports. (1) Every permittee shall keep accurate and
19complete records of the production and sales of marijuana and usable marijuana in
20this state. The records shall be kept on the premises described in the permit and in
21such manner as to ensure permanency and accessibility for inspection at reasonable
22hours by the department's authorized personnel. The department shall prescribe
23reasonable and uniform methods of keeping records and making reports and shall
24provide the necessary forms to permittees.
AB482,43,10
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.
AB482,43,20 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.
AB482,43,25 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 shall publish production and sales statistics.
AB482,66
1Section 66. 139.975 of the statutes is created to read:
AB482,44,4 2139.975 Administration and enforcement. (1) The department shall
3administer and enforce this subchapter and promulgate rules necessary to
4administer and enforce this subchapter.
AB482,44,6 5(2) The duly authorized employees of the department have all necessary police
6powers to prevent violations of this subchapter.
AB482,44,13 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.
AB482,44,17 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.
AB482,44,25 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. A separate suit need not be filed for each separate
24payment made by any taxpayer, but a recovery may be had in one suit for as many
25payments as may have been made.
AB482,45,6
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.
AB482,45,87 (b) The immunity provided under par. (a) is subject to the restrictions under
8s. 972.085.
AB482,45,10 9(7) The provisions on timely filing under s. 71.80 (18) apply to the tax imposed
10under this subchapter.
AB482,45,16 11(8) Sections 71.74 (1), (2), (10), (11), and (14), 71.77, 71.91 (1) (a) and (c) and
12(2) to (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.
AB482,45,20 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.
AB482,45,23 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.
AB482,45,25 24(11) The tax imposed under this subchapter does apply to the sale, distribution,
25or delivery of medical marijuana as described in s. 50.85 (1).
AB482,67
1Section 67. 139.976 of the statutes is created to read:
AB482,46,8 2139.976 Theft of tax moneys. All marijuana tax moneys received by a
3permittee for the sale of marijuana or usable marijuana on which the tax under this
4subchapter has become due and has not been paid are trust funds in the permittee's
5possession and are the property of this state. Any permittee who fraudulently
6withholds, appropriates, or otherwise uses marijuana tax moneys that are the
7property of this state is guilty of theft under s. 943.20 (1), whether or not the
8permittee has or claims to have an interest in those moneys.
AB482,68 9Section 68. 139.977 of the statutes is created to read:
AB482,46,15 10139.977 Seizure and confiscation. (1) All marijuana and usable marijuana
11produced, processed, made, kept, stored, sold, distributed, or transported in violation
12of this subchapter, and all tangible personal property used in connection with the
13marijuana or usable marijuana is unlawful property and subject to seizure by the
14department or a law enforcement officer. Except as provided in sub. (2), all
15marijuana and usable marijuana seized under this subsection shall be destroyed.
AB482,46,21 16(2) If marijuana or usable marijuana on which the tax has not been paid is
17seized as provided under sub. (1), it may be given to law enforcement officers to use
18in criminal investigations or sold to qualified buyers by the department, without
19notice. If the department finds that the marijuana or usable marijuana may
20deteriorate or become unfit for use in criminal investigations or for sale, or that those
21uses would otherwise be impractical, the department may order them destroyed.
AB482,47,3 22(3) If marijuana or usable marijuana on which the tax has been paid is seized
23as provided under sub. (1), it shall be returned to the true owner if ownership can be
24ascertained and the owner or the owner's agent is not involved in the violation
25resulting in the seizure. If the ownership cannot be ascertained or if the owner or

1the owner's agent was guilty of the violation that resulted in the seizure of the
2marijuana or usable marijuana, it may be sold or otherwise disposed of as provided
3in sub. (2).
AB482,47,22 4(4) If tangible personal property other than marijuana or usable marijuana is
5seized as provided under sub. (1), the department shall advertise the tangible
6personal property for sale by publication of a class 2 notice under ch. 985. If no person
7claiming a lien on, or ownership of, the property has notified the department of the
8person's claim within 10 days after last insertion of the notice, the department shall
9sell the property. If a sale is not practical the department may destroy the property.
10If a person claiming a lien on, or ownership of, the property notifies the department
11within the time prescribed in this subsection, the department may apply to the
12circuit court in the county where the property was seized for an order directing
13disposition of the property or the proceeds from the sale of the property. If the court
14orders the property to be sold, all liens, if any, may be transferred from the property
15to the sale proceeds. Neither the property seized nor the proceeds from the sale shall
16be turned over to any claimant of lien or ownership unless the claimant first
17establishes that the property was not used in connection with any violation under
18this subchapter or that, if so used, it was done without the claimant's knowledge or
19consent and without the claimant's knowledge of facts that should have given the
20claimant reason to believe it would be put to such use. If no claim of lien or ownership
21is established as provided under this subsection the property may be ordered
22destroyed.
AB482,69 23Section 69. 139.978 of the statutes is created to read:
AB482,48,3 24139.978 Interest and penalties. (1) Any person who makes or signs any
25false or fraudulent report under this subchapter or who attempts to evade the tax

1imposed by s. 139.971, or who aids in or abets the evasion or attempted evasion of
2that tax, may be fined not more than $10,000 or imprisoned for not more than 9
3months or both.
AB482,48,6 4(2) Any permittee who fails to keep the records required by s. 139.974 (1) and
5(2) shall be fined not less than $100 nor more than $500 or imprisoned not more than
66 months or both.
AB482,48,11 7(3) Any person who refuses to permit the examination or inspection authorized
8under s. 139.975 (3) may be fined not more than $500 or imprisoned not more than
96 months or both. The department shall immediately suspend or revoke the permit
10of any person who refuses to permit the examination or inspection authorized under
11s. 139.975 (3).
AB482,48,14 12(4) Any person who violates any of the provisions of this subchapter for which
13no other penalty is prescribed shall be fined not less than $100 nor more than $1,000
14or imprisoned not less than 10 days nor more than 90 days or both.
AB482,48,17 15(5) Any person who violates any of the rules promulgated in accordance with
16this subchapter shall be fined not less than $100 nor more than $500 or be
17imprisoned not more than 6 months or both.
AB482,48,21 18(6) In addition to the penalties imposed for violating the provisions of this
19subchapter or any of the department's rules, the department shall revoke the permit
20of any person convicted of such a violation and not issue another permit to that
21person for a period of 2 years following the revocation.
AB482,48,25 22(7) Unpaid taxes bear interest at the rate of 12 percent per year from the due
23date of the return until paid or deposited with the department, and all refunded taxes
24bear interest at the rate of 3 percent per year from the due date of the return to the
25date on which the refund is certified on the refund rolls.
AB482,49,2
1(8) All nondelinquent payments of additional amounts owed shall be applied
2in the following order: penalties, interest, tax principal.
AB482,49,5 3(9) Delinquent marijuana taxes bear interest at the rate of 1.5 percent per
4month until paid. The taxes imposed by this subchapter shall become delinquent if
5not paid:
AB482,49,76 (a) In the case of a timely filed return, no return filed or a late return, on or
7before the due date of the return.
AB482,49,98 (b) In the case of a deficiency determination of taxes, within 2 months after the
9date of demand.
AB482,49,13 10(10) If due to neglect an incorrect return is filed, the entire tax finally
11determined is subject to a penalty of 25 percent of the tax exclusive of interest or
12other penalty. A person filing an incorrect return has the burden of proving that the
13error or errors were due to good cause and not due to neglect.
AB482,70 14Section 70. 139.979 of the statutes is created to read:
AB482,49,19 15139.979 Personal use. An individual who possesses no more than 6
16marijuana plants at any one time is not subject to the tax imposed under s. 139.971.
17An individual who possesses more than 6 marijuana plants at any one time shall
18apply for the appropriate permit under s. 139.972 and pay the appropriate tax
19imposed under s. 139.971.
AB482,71 20Section 71. 139.980 of the statutes is created to read:
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