Amendment SA12-AB56

AB56-SA12,28,18 (2) Permit required. (a) No person may operate in this state as a marijuana producer or marijuana processor without a permit from the department. A person who acts as a marijuana producer and a marijuana processor shall obtain a separate permit for each activity. A person is not required to obtain a permit under this section if the person produces or processes only industrial hemp and holds a valid license under s. 94.55.

AB56-SA12,28,21 (b) This subsection 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.

AB56-SA12,28,23 (c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may not be granted to any person to whom any of the following applies:

AB56-SA12,28,25 1. The person has been convicted of a violent misdemeanor, as defined in s. 941.29 (1g) (b), at least 3 times.

AB56-SA12,29,2 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g) (a), unless pardoned.

AB56-SA12,29,4 3. During the preceding 3 years, the person has been committed under s. 51.20 for being drug dependent.

AB56-SA12,29,9 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 to chronically and habitually 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:

AB56-SA12,29,11 a. The person has been committed for involuntary treatment under s. 51.45 (13).

AB56-SA12,29,12 b. The person has been convicted of a violation of s. 941.20 (1) (b).

AB56-SA12,29,22 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.

AB56-SA12,29,24 5. The person has income that comes principally from gambling or has been convicted of 2 or more gambling offenses.

AB56-SA12,29,25 6. The person has been guilty of crimes relating to prostitution.

AB56-SA12,30,2 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.

AB56-SA12,30,3 8. The person is under the age of 21.

AB56-SA12,30,5 9. The person has not been a resident of this state continuously for at least 90 days prior to the application date.

AB56-SA12,30,12 (cm) Notwithstanding ss. 66.0134 and 947.21, an applicant with 20 or more employees may not receive a permit under this section unless the applicant certifies to the department that the applicant has entered into a labor peace agreement and will abide by the terms of the agreement as a condition of maintaining a valid permit under this section. The applicant shall submit to the department a copy of the page of the labor peace agreement that contains the signatures of the union representative and the applicant.

AB56-SA12,30,22 (cn) The department shall use a competitive scoring system to determine which applicants are eligible to receive a permit under this section. The department shall issue permits to the highest scoring applicants that it determines will best protect the environment; provide stable, family-supporting jobs to local residents; ensure worker and consumer safety; operate secure facilities; and uphold the laws of the jurisdictions in which they operate. The department may deny a permit to an applicant with a low score, as determined under this paragraph. The department may request that the applicant provide any information or documentation that the department deems necessary for purposes of making a determination under this paragraph.

AB56-SA12,31,4 (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 permit applicant intends to operate the premises of a marijuana producer or marijuana processor. 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.

AB56-SA12,31,17 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.

AB56-SA12,31,22 (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.

AB56-SA12,31,24 (f) 1. The department's denial of a permit under this section is subject to judicial review under ch. 227.

AB56-SA12,32,2 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.

AB56-SA12,32,4 (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).

AB56-SA12,32,10 (3) Fees; term. (a) Each person who applies for a permit under this section shall submit with the application a $250 fee. 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.

AB56-SA12,32,14 (b) A permittee shall annually pay to the department a fee for as long as the person holds a valid permit under this section. The annual fee for a marijuana processor permittee is $2,000. The annual fee for a marijuana producer permittee is one of the following, unless the department, by rule, establishes a higher amount:

AB56-SA12,32,16 1. If the permittee plants, grows, cultivates, or harvests not more than 1,800 marijuana plants, $1,800.

AB56-SA12,32,18 2. If the permittee plants, grows, cultivates, or harvests more than 1,800 but not more than 3,600 marijuana plants, $2,900.

AB56-SA12,32,20 3. If the permittee plants, grows, cultivates, or harvests more than 3,600 but not more than 6,000 marijuana plants, $3,600.

AB56-SA12,32,22 4. If the permittee plants, grows, cultivates, or harvests more than 6,000 but not more than 10,200 marijuana plants, $5,100.

AB56-SA12,32,24 5. If the permittee plants, grows, cultivates, or harvests more than 10,200 marijuana plants, $7,100 plus $800 for every 3,600 marijuana plants over 10,200.

AB56-SA12,33,3 (4) Schools. The department may not issue a permit under this section to operate as a marijuana producer within 500 feet of the perimeter of the grounds of any elementary or secondary school.

AB56-SA12,33,11 (5) Education and awareness campaign. The department shall develop and make available training programs for marijuana producers on how to safely and efficiently plant, grow, cultivate, harvest, and otherwise handle marijuana, and for marijuana processors on how to safely and efficiently produce and handle marijuana products and test marijuana for contaminants. The department shall conduct an awareness campaign to inform potential marijuana producers and marijuana processors of the availability and viability of marijuana as a crop or product in this state.

AB56-SA12,33,14 (6) Rules. The department shall promulgate rules necessary to administer and enforce this section, including rules relating to the inspection of the plants, facilities, and products of permittees and training requirements for employees of permittees.

AB56-SA12,33,18 (7) Penalties. (a) Any person who violates the requirements under sub. (2) or (3) or any of the requirements established by the rules promulgated under sub. (6) shall be fined not less than $100 nor more than $500 or imprisoned not more than 6 months or both.

AB56-SA12,33,22 (b) In addition to the penalties imposed under par. (a), the department shall revoke the permit of any person convicted of any violation described under par. (a) and not issue another permit to that person for a period of 2 years following the revocation.

AB56-SA12,79 Section 79. 100.145 of the statutes is created to read:

AB56-SA12,34,2 100.145 Recreational marijuana logotype. The department shall design an official logotype, appropriate for including on a label affixed to recreational marijuana under s. 139.973 (10) (a). The department shall design the logotype to be distinguishable from any logotype for medical marijuana.

AB56-SA12,80 Section 80. 108.02 (18r) of the statutes is created to read:

AB56-SA12,34,4 108.02 (18r) Marijuana. “Marijuana” has the meaning given in s. 111.32 (11m).

AB56-SA12,81 Section 81. 108.04 (5m) of the statutes is created to read:

AB56-SA12,34,10 108.04 (5m) Discharge for use of marijuana. (a) Notwithstanding sub. (5), “misconduct," for purposes of sub. (5), does not include the employee's use of marijuana off the employer's premises during nonworking hours or a violation of the employer's policy concerning such use, unless termination of the employee because of that use is permitted under s. 111.35.

AB56-SA12,34,14 (b) Notwithstanding sub. (5g), “substantial fault," for purposes of sub. (5g), does not include the employee's use of marijuana off the employer's premises during nonworking hours or a violation of the employer's policy concerning such use, unless termination of the employee because of that use is permitted under s. 111.35.

AB56-SA12,82 Section 82. 108.133 (1) (a) of the statutes is renumbered 108.133 (1) (a) 1. and amended to read:

AB56-SA12,34,18 108.133 (1) (a) 1. Notwithstanding s. 108.02 (9), “controlled substance" has the meaning given in 21 USC 802, except as provided in subd. 2.

AB56-SA12,83 Section 83. 108.133 (1) (a) 2. of the statutes is created to read:

AB56-SA12,34,23 108.133 (1) (a) 2. “Controlled substance” does not include tetrahydrocannabinols, commonly known as “THC," in any form including tetrahydrocannabinols contained in marijuana, obtained from marijuana, or chemically synthesized.

AB56-SA12,84 Section 84. 111.32 (9m) of the statutes is created to read:

AB56-SA12,34,25 111.32 (9m) “Lawful product” includes marijuana.

AB56-SA12,85 Section 85. 111.32 (11m) of the statutes is created to read:

AB56-SA12,35,5 111.32 (11m) “Marijuana” means all parts of the plants of the genus Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, including tetrahydrocannabinols.

AB56-SA12,86 Section 86. 111.35 (2) (e) of the statutes is amended to read:

AB56-SA12,35,9 111.35 (2) (e) Conflicts with any federal or state statute, rule or regulation. This paragraph does not apply with respect to violations concerning marijuana or tetrahydrocannabinols under 21 USC 841 to 865.

AB56-SA12,87 Section 87. 114.09 (2) (bm) 1. (intro.) of the statutes is amended to read:

AB56-SA12,35,17 114.09 (2) (bm) 1. (intro.) Except as provided in subd. 1. a. or b., the court shall order the person violating sub. (1) (b) 1. or 1m. to submit to and comply with an assessment by an approved public treatment facility as defined in s. 51.45 (2) (c) for examination of the person's use of alcohol, tetrahydrocannabinols, controlled substances, or controlled substance analogs and development of an airman safety plan for the person. The court shall notify the person, the department, and the proper federal agency of the assessment order. The assessment order shall:

AB56-SA12,88 Section 88. 114.09 (2) (bm) 4. of the statutes is amended to read:

AB56-SA12,36,4 114.09 (2) (bm) 4. The assessment report shall order compliance with an airman safety plan. The report shall inform the person of the fee provisions under s. 46.03 (18) (f). The safety plan may include a component that makes the person aware of the effect of his or her offense on a victim and a victim's family. The safety plan may include treatment for the person's misuse, abuse, or dependence on alcohol, tetrahydrocannabinols, controlled substances, or controlled substance analogs. If the plan requires inpatient treatment, the treatment shall not exceed 30 days. An airman safety plan under this paragraph shall include a termination date consistent with the plan that shall not extend beyond one year. The county department under s. 51.42 shall assure notification of the department of transportation and the person of the person's compliance or noncompliance with assessment and treatment.

AB56-SA12,89 Section 89. 115.35 (1) of the statutes is renumbered 115.35 (1) (a) (intro.) and amended to read:

AB56-SA12,36,16 115.35 (1) (a) (intro.) A critical health problems education program is established in the department. The program shall be a systematic and integrated program designed to provide appropriate learning experiences based on scientific knowledge of the human organism as it functions within its environment and designed to favorably influence the health, understanding, attitudes and practices of the individual child which will enable him or her to adapt to changing health problems of our society. The program shall be designed to educate youth with regard to critical health problems and shall include, but not be limited to, the following topics as the basis for comprehensive education curricula in all elementary and secondary schools: controlled

AB56-SA12,36,18 1. Controlled substances, as defined in s. 961.01 (4); controlled substance analogs, as defined in s. 961.01 (4m); alcohol; and tobacco; mental.

AB56-SA12,36,19 2. Mental health; sexually.

AB56-SA12,36,21 3. Sexually transmitted diseases, including acquired immunodeficiency syndrome; human.

AB56-SA12,36,22 4. Human growth and development; and.

AB56-SA12,36,23 5. Other related health and safety topics as determined by the department.

AB56-SA12,37,3 (b) Participation in the human growth and development topic of the curricula described in par. (a) shall be entirely voluntary. The department may not require a school board to use a specific human growth and development curriculum.

AB56-SA12,90 Section 90. 115.35 (1) (a) 6. of the statutes is created to read:

AB56-SA12,37,9 115.35 (1) (a) 6. Beginning in the 2019-20 school year, the program shall also include scientific, evidence-based and grade-level-appropriate information about the common uses of marijuana, how marijuana use affects an individual's behavior, body, and brain, and the health and behavior risks associated with marijuana use and abuse.

AB56-SA12,91 Section 91. 121.02 (1) (L) 8. of the statutes is created to read:

AB56-SA12,37,13 121.02 (1) (L) 8. Beginning in the 2019-20 school year, as part of the health curriculum, in one of grades 5 to 8 and in one of grades 9 to 12, provide pupils with the instruction about marijuana described in s. 115.35 (1) (a) 6.

AB56-SA12,92 Section 92. Subchapter IV of chapter 139 [precedes 139.97] of the statutes is created to read:

AB56-SA12,37,16 chapter 139

AB56-SA12,37,17 subchapter Iv

AB56-SA12,37,18 marijuana tax and regulation

AB56-SA12,37,19 139.97 Definitions. In this subchapter:

AB56-SA12,37,20 (1) “Department" means the department of revenue.

AB56-SA12,37,23 (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.

AB56-SA12,37,25 (3) “Lot number" means a number that specifies the person who holds a valid permit under this subchapter and the harvesting or processing date for each lot.

AB56-SA12,38,1 (4) “Marijuana" has the meaning given in s. 961.70 (3).

AB56-SA12,38,5 (5) “Marijuana distributor” means a person in this state who purchases or receives usable marijuana from a marijuana processor and who sells or otherwise transfers the usable marijuana to a marijuana retailer or to a compassion center, as defined in s. 50.80 (1), for the purpose of resale to consumers.

AB56-SA12,38,9 (6) “Marijuana processor" means a person in this state who processes marijuana into usable marijuana, packages and labels usable marijuana for sale in retail outlets or in compassion centers, as defined in s. 50.80 (1), and sells at wholesale or otherwise transfers usable marijuana to marijuana distributors.

AB56-SA12,38,11 (7) “Marijuana producer" means a person in this state who produces marijuana and sells it at wholesale or otherwise transfers it to marijuana processors.

AB56-SA12,38,14 (8) “Marijuana retailer" means a person in this state that sells usable marijuana at a retail outlet, not including a compassion center, as defined in s. 50.80 (1).

AB56-SA12,38,17 (9) “Microbusiness” means a marijuana producer that produces marijuana in one area that is less than 10,000 square feet and who also operates as any 2 of the following:

AB56-SA12,38,18 (a) A marijuana processor.

AB56-SA12,38,19 (b) A marijuana distributor.

AB56-SA12,38,20 (c) A marijuana retailer.

AB56-SA12,38,23 (10) “Permittee" means a marijuana producer, marijuana processor, marijuana distributor, marijuana retailer, or microbusiness that is issued a permit under s. 139.972.

AB56-SA12,38,24 (11) “Retail outlet" means a location for the retail sale of usable marijuana.

AB56-SA12,38,25 (12) “Sales price" has the meaning given in s. 77.51 (15b).

AB56-SA12,39,3 (13) “Usable marijuana" means marijuana that has been processed for human consumption and includes dried marijuana flowers, marijuana-infused products, and marijuana edibles.