1139.974 Records and reports. (1)
Every permittee shall keep accurate and 2
complete records of the production and sales of marijuana and usable marijuana in 3
this state. The records shall be kept on the premises described in the permit and in 4
such manner as to ensure permanency and accessibility for inspection at reasonable 5
hours by the department's authorized personnel. The department shall prescribe 6
reasonable and uniform methods of keeping records and making reports and shall 7
provide the necessary forms to permittees.
If the department determines that any permittee's records are not kept in 9
the prescribed form or are in such condition that the department requires an unusual 10
amount of time to determine from the records the amount of the tax due, the 11
department shall give notice to the permittee that the permittee is required to revise 12
the permittee's records and keep them in the prescribed form. If the permittee fails 13
to comply within 30 days, the permittee shall pay the expenses reasonably 14
attributable to a proper examination and tax determination at the rate of $30 a day 15
for each auditor used to make the examination and determination. The department 16
shall send a bill for such expenses, and the permittee shall pay the amount of such 17
bill within 10 days.
If any permittee fails to file a report when due, the permittee shall be 19
required to pay a late filing fee of $10. A report that is mailed is filed on time if it is 20
mailed in a properly addressed envelope with postage prepaid, the envelope is 21
officially postmarked, or marked or recorded electronically as provided under section 227502
(f) (2) (c) of the Internal Revenue Code, on the date due, and the report is 23
actually received by the department or at the destination that the department 24
prescribes within 5 days of the due date. A report that is not mailed is timely if it 25
is received on or before the due date by the department or at the destination that the
department prescribes. For purposes of this subsection, “mailed" includes delivery 2
by a delivery service designated under section 7502
(f) of the Internal Revenue Code.
Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating 4
to confidentiality of income, franchise, and gift tax returns, apply to any information 5
obtained from any permittee under this subchapter on a tax return, report, schedule, 6
exhibit, or other document or from an audit report relating to any of those documents, 7
except that the department shall publish production and sales statistics.
8139.975 Administration and enforcement. (1)
The department shall 9
administer and enforce this subchapter and promulgate rules necessary to 10
administer and enforce this subchapter.
The duly authorized employees of the department have all necessary police 12
powers to prevent violations of this subchapter.
Authorized personnel of the department of justice and the department of 14
revenue, and any law enforcement officer, within their respective jurisdictions, may 15
at all reasonable hours enter the premises of any permittee and examine the books 16
and records to determine whether the tax imposed by this subchapter has been fully 17
paid and may enter and inspect any premises where marijuana or usable marijuana 18
is produced, processed, made, sold, or stored to determine whether the permittee is 19
complying with this subchapter.
The department may suspend or revoke the permit of any permittee who 21
violates s. 100.30, any provision of this subchapter, or any rules promulgated under 22
sub. (1). The department shall revoke the permit of any permittee who violates s. 23
100.30 3 or more times within a 5-year period.
No suit shall be maintained in any court to restrain or delay the collection 25
or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax
when due and, if paid under protest, may at any time within 90 days from the date 2
of payment sue the state to recover the tax paid. If it is finally determined that any 3
part of the tax was wrongfully collected, the secretary of administration shall pay the 4
amount wrongfully collected. A separate suit need not be filed for each separate 5
payment made by any taxpayer, but a recovery may be had in one suit for as many 6
payments as may have been made.
(a) Any person may be compelled to testify in regard to any violation of this 8
subchapter of which the person may have knowledge, even though such testimony 9
may tend to incriminate the person, upon being granted immunity from prosecution 10
in connection with the testimony, and upon the giving of such testimony, the person 11
shall not be prosecuted because of the violation relative to which the person has 12
(b) The immunity provided under par. (a) is subject to the restrictions under 14
The provisions on timely filing under s. 71.80 (18) apply to the tax imposed 16
under this subchapter.
Sections 71.74 (1), (2), (10), (11), and (14), 71.77, 71.91 (1) (a) and (c) and 18
(2) to (7), 71.92, and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes 19
under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes 20
under ch. 71 applies to the collection of the taxes under this subchapter, except that 21
the period during which notice of an additional assessment shall be given begins on 22
the due date of the report under this subchapter.
Any building or place of any kind where marijuana or usable marijuana is 24
sold, possessed, stored, or manufactured without a lawful permit or in violation of
s. 139.972 or 139.973 is declared a public nuisance and may be closed and abated as 2
At the request of the secretary of revenue, the attorney general may 4
represent this state or assist a district attorney in prosecuting any case arising under 5
The tax imposed under this subchapter does apply to the sale, distribution, 7
or delivery of medical marijuana as described in s. 50.85 (1).
8139.976 Theft of tax moneys.
All marijuana tax moneys received by a 9
permittee for the sale of marijuana or usable marijuana on which the tax under this 10
subchapter has become due and has not been paid are trust funds in the permittee's 11
possession and are the property of this state. Any permittee who fraudulently 12
withholds, appropriates, or otherwise uses marijuana tax moneys that are the 13
property of this state is guilty of theft under s. 943.20 (1), whether or not the 14
permittee has or claims to have an interest in those moneys.
15139.977 Seizure and confiscation.
All marijuana and usable marijuana 16
produced, processed, made, kept, stored, sold, distributed, or transported in violation 17
of this subchapter, and all tangible personal property used in connection with the 18
marijuana or usable marijuana is unlawful property and subject to seizure by the 19
department or a law enforcement officer. Except as provided in sub. (2), all 20
marijuana and usable marijuana seized under this subsection shall be destroyed.
If marijuana or usable marijuana on which the tax has not been paid is 22
seized as provided under sub. (1), it may be given to law enforcement officers to use 23
in criminal investigations or sold to qualified buyers by the department, without 24
notice. If the department finds that the marijuana or usable marijuana may
deteriorate or become unfit for use in criminal investigations or for sale, or that those 2
uses would otherwise be impractical, the department may order it destroyed.
If marijuana or usable marijuana on which the tax has been paid is seized 4
as provided under sub. (1), it shall be returned to the true owner if ownership can be 5
ascertained and the owner or the owner's agent is not involved in the violation 6
resulting in the seizure. If the ownership cannot be ascertained or if the owner or 7
the owner's agent was guilty of the violation that resulted in the seizure of the 8
marijuana or usable marijuana, it may be sold or otherwise disposed of as provided 9
in sub. (2).
If tangible personal property other than marijuana or usable marijuana is 11
seized as provided under sub. (1), the department shall advertise the tangible 12
personal property for sale by publication of a class 2 notice under ch. 985. If no person 13
claiming a lien on, or ownership of, the property has notified the department of the 14
person's claim within 10 days after last insertion of the notice, the department shall 15
sell the property. If a sale is not practical the department may destroy the property. 16
If a person claiming a lien on, or ownership of, the property notifies the department 17
within the time prescribed in this subsection, the department may apply to the 18
circuit court in the county where the property was seized for an order directing 19
disposition of the property or the proceeds from the sale of the property. If the court 20
orders the property to be sold, all liens, if any, may be transferred from the property 21
to the sale proceeds. Neither the property seized nor the proceeds from the sale shall 22
be turned over to any claimant of lien or ownership unless the claimant first 23
establishes that the property was not used in connection with any violation under 24
this subchapter or that, if so used, it was done without the claimant's knowledge or 25
consent and without the claimant's knowledge of facts that should have given the
claimant reason to believe it would be put to such use. If no claim of lien or ownership 2
is established as provided under this subsection the property may be ordered 3
4139.978 Interest and penalties.
Any person who makes or signs any 5
false or fraudulent report under this subchapter or who attempts to evade the tax 6
imposed by s. 139.971, or who aids in or abets the evasion or attempted evasion of 7
that tax, may be fined not more than $10,000 or imprisoned for not more than 9 8
months or both.
Any permittee who fails to keep the records required by s. 139.974 (1) and 10
(2) shall be fined not less than $100 nor more than $500 or imprisoned not more than 11
6 months or both.
Any person who refuses to permit the examination or inspection authorized 13
under s. 139.975 (3) may be fined not more than $500 or imprisoned not more than 14
6 months or both. The department shall immediately suspend or revoke the permit 15
of any person who refuses to permit the examination or inspection authorized under 16
s. 139.975 (3).
Any person who violates any of the provisions of this subchapter for which 18
no other penalty is prescribed shall be fined not less than $100 nor more than $1,000 19
or imprisoned not less than 10 days nor more than 90 days or both.
Any person who violates any of the rules promulgated in accordance with 21
this subchapter shall be fined not less than $100 nor more than $500 or imprisoned 22
not more than 6 months or both.
In addition to the penalties imposed for violating the provisions of this 24
subchapter or any of the department's rules, the department shall revoke the permit
of any person convicted of such a violation and not issue another permit to that 2
person for a period of 2 years following the revocation.
Unpaid taxes bear interest at the rate of 12 percent per year from the due 4
date of the return until paid or deposited with the department, and all refunded taxes 5
bear interest at the rate of 3 percent per year from the due date of the return to the 6
date on which the refund is certified on the refund rolls.
All nondelinquent payments of additional amounts owed shall be applied 8
in the following order: penalties, interest, tax principal.
Delinquent marijuana taxes bear interest at the rate of 1.5 percent per 10
month until paid. The taxes imposed by this subchapter shall become delinquent if 11
(a) In the case of a timely filed return, no return filed or a late return, on or 13
before the due date of the return.
(b) In the case of a deficiency determination of taxes, within 2 months after the 15
date of demand.
If due to neglect an incorrect return is filed, the entire tax finally 17
determined is subject to a penalty of 25 percent of the tax exclusive of interest or 18
other penalty. A person filing an incorrect return has the burden of proving that the 19
error or errors were due to good cause and not due to neglect.
20139.979 Personal use.
An individual who possesses no more than 6 21
marijuana plants that have reached the flowering stage at any one time is not subject 22
to the tax imposed under s. 139.971. An individual who possesses more than 6 23
marijuana plants that have reached the flowering stage at any one time shall apply 24
for the appropriate permit under s. 139.972 and pay the appropriate tax imposed 25
under s. 139.971.
1139.980 Agreement with tribes.
The department may enter into an 2
agreement with a federally recognized American Indian Tribe in this state for the 3
administration and enforcement of this subchapter and to provide refunds of the tax 4
imposed under s. 139.971 on marijuana sold on tribal land by or to enrolled members 5
of the tribe residing on the tribal land.
146.40 (1) (bo) of the statutes is amended to read:
(bo) “Hospice" means a hospice that is licensed under subch. VI VII 8
of ch. 50.
146.44 of the statutes is created to read:
10146.44 Medical marijuana registry program. (1) Definitions.
In this 11
(a) “Applicant" means a person who is applying for a registry identification card 13
under sub. (2) (a).
(b) “Debilitating medical condition or treatment" has the meaning given in s. 15
(c) “Medical use of tetrahydrocannabinols" has the meaning given in s. 50.80 17
(d) “Out-of-state registry identification card" means a document issued by an 19
entity listed in the rule promulgated under sub. (7) (f) that identifies the person as 20
a qualifying patient or primary caregiver, or an equivalent designation.
(e) “Primary caregiver" has the meaning given in s. 50.80 (5).
(f) “Qualifying patient" has the meaning given in s. 50.80 (6).
(g) “Registrant" means a person to whom a registry identification card is issued 24
under sub. (4).
(h) “Registry identification card" means a document issued by the department 2
under this section that identifies a person as a qualifying patient or primary 3
(i) “Written certification" has the meaning given in s. 50.80 (10).
(a) An adult who is claiming to be a qualifying patient may 6
apply for a registry identification card by submitting to the department a signed 7
application form containing or accompanied by all of the following:
1. His or her name, address, and date of birth.
2. A written certification.
3. The name, address, and telephone number of the person's current physician, 11
as listed in the written certification.
4. A registration fee in an amount determined by the department, but not to 13
(b) An adult registrant who is a qualifying patient or an applicant may jointly 15
apply with another adult to the department for a registry identification card for the 16
other adult, designating the other adult as a primary caregiver for the registrant or 17
applicant. Both persons who jointly apply for a registry identification card under this 18
paragraph shall sign the application form, which shall contain the name, address, 19
and date of birth of the individual applying to be registered as a primary caregiver.
(c) The department shall promulgate rules specifying how a parent, guardian, 21
or person having legal custody of a child may apply for a registry identification card 22
for himself or herself and for the child and the circumstances under which the 23
department may approve or deny the application.
24(3) Processing the application.
The department shall verify the information 25
contained in or accompanying an application submitted under sub. (2) and shall
approve or deny the application within 30 days after receiving it. Except as provided 2
in sub. (2) (c), the department may deny an application submitted under sub. (2) only 3
if the required information has not been provided or if false information has been 4
5(4) Issuing a registry identification card.
The department shall issue to the 6
applicant a registry identification card within 5 days after approving an application 7
under sub. (3). Unless voided under sub. (5) (b) or (c) or revoked under rules issued 8
by the department under sub. (7) (d), a registry identification card shall expire 4 9
years from the date of issuance. A registry identification card shall contain all of the 10
(a) The name, address, and date of birth of all of the following:
1. The registrant.
2. Each primary caregiver if the registrant is a qualifying patient.
3. The qualifying patient if the registrant is a primary caregiver.
(b) The date of issuance and expiration date of the registry identification card.
(c) A photograph of the registrant.
(d) Other information the department may require by rule.
18(5) Additional information to be provided by registrant.
(a) 1. An adult 19
registrant shall notify the department of any change in the registrant's name and 20
address. An adult registrant who is a qualifying patient shall notify the department 21
of any change in his or her physician, of any significant improvement in his or her 22
health as it relates to his or her debilitating medical condition or treatment, and if 23
a registered primary caregiver no longer assists the registrant with the medical use 24
2. If a qualifying patient is a child, a primary caregiver for the child shall 2
provide the department with any information that the child, if he or she were an 3
adult, would have to provide under subd. 1. within 10 days after the date of the 4
change to which the information relates.
(b) If a registrant fails to notify the department within 10 days after any change 6
for which notification is required under par. (a) 1., his or her registry identification 7
card is void. If a registrant fails to comply with par. (a) 2., the registry identification 8
card for the qualifying patient to whom the information under par. (a) 2. relates is 9
(c) If a qualifying patient's registry identification card becomes void under par. 11
(b), the registry identification card for each of the qualifying patient's primary 12
caregivers is void. The department shall send written notice of this fact to each such 13
(a) The department shall maintain a list of all registrants.
(b) Notwithstanding s. 19.35 and except as provided in par. (c), the department 16
may not disclose information from an application submitted or a registry 17
identification card issued under this section.
(c) The department may disclose to state or local law enforcement agencies 19
information from an application submitted by, or from a registry identification card 20
issued to, a specific person under this section for the purpose of verifying that the 21
person possesses a valid registry identification card.
The department shall promulgate rules to implement this section, 23
including the rules required under sub. (2) (c) and rules doing all of the following:
(a) Creating forms for applications to be used under sub. (2).
(b) Specifying how the department will verify the truthfulness of information2
submitted on an application under sub. (2).
(c) Specifying how and under what circumstances registry identification cards 4
may be renewed.
(d) Specifying how and under what changed circumstances a registry 6
identification card may be revoked.
(e) Specifying under what circumstances an applicant whose application is 8
denied may reapply.
(f) Listing each state, district, commonwealth, territory, or insular possession 10
thereof that, by issuing an out-of-state registry identification card, allows the 11
medical use of marijuana by a visiting qualifying patient or allows a person to assist 12
with a visiting qualifying patient's medical use of marijuana.
(g) Creating guidelines for issuing registry identification cards, and for 14
obtaining and distributing marijuana for the medical use of tetrahydrocannabinols, 15
to persons under the care of the department who have a debilitating medical 16
condition or treatment.
17(8) Physician education and public awareness campaign.
The department 18
shall provide, in a manner determined by the department, information to physicians 19
about the availability of the medical marijuana registry program. The department 20
shall also conduct a public awareness campaign to inform the public about issues 21
relating to medical marijuana, including information about the medical marijuana 22
registry program in this state and information about possible risks and benefits of 23
the medical use of tetrahydrocannabinols.
146.46 of the statutes is created to read:
1146.46 Medical marijuana logotype.
The department shall design an 2
official logotype, appropriate for including on a label affixed to medical marijuana 3
under s. 50.85. The department shall design the logotype to be distinguishable from 4
any logotype for recreational marijuana.
146.81 (1) (L) of the statutes is amended to read:
(L) A hospice licensed under subch.
of ch. 50.
146.997 (1) (d) 18. of the statutes is amended to read:
(d) 18. A hospice licensed under subch.
of ch. 50.
157.06 (11) (hm) of the statutes is created to read:
(hm) Unless otherwise required by federal law, a hospital, 11
physician, procurement organization, or other person may not determine the 12
ultimate recipient of an anatomical gift based solely upon a positive test for the use 13
of marijuana by a potential recipient.
157.06 (11) (i) of the statutes is amended to read: