AB220,45,22 22(12) “Sales price" has the meaning given in s. 77.51 (15b).
AB220,45,25 23(13) “Usable marijuana" means marijuana that has been processed for human
24consumption and includes dried marijuana flowers, marijuana-infused products,
25and marijuana edibles.
1139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana
2producer at the rate of 15 percent of the sales price on each wholesale sale or transfer
3in this state of marijuana to a marijuana processor. This paragraph applies to a
4microbusiness that transfers marijuana to a processing operation within the
AB220,46,76 (b) An excise tax is imposed on a marijuana retailer at the rate of 10 percent
7of the sales price on each retail sale in this state of usable marijuana.
AB220,46,11 8(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
9to the department no later than the 15th day of the month following the month in
10which the person's tax liability is incurred and shall include with the payment a
11return on a form prescribed by the department.
AB220,46,16 12(3) For purposes of this section, a marijuana producer may not sell marijuana
13directly to a marijuana distributor or marijuana retailer, and a marijuana retailer
14may purchase usable marijuana for resale only from a marijuana distributor. This
15subsection does not apply to a microbusiness that transfers marijuana or usable
16marijuana to another operation with the microbusiness.
AB220,46,22 17139.972 Permits required. (1) (a) No person may operate in this state as a
18marijuana producer, marijuana processor, marijuana distributor, marijuana
19retailer, or microbusiness without first filing an application for and obtaining the
20proper permit from the department to perform such operations. In addition, no
21person may operate in this state as a marijuana producer or marijuana processor
22without first filing an application for and obtaining the proper permit under s. 94.56.
AB220,46,2523 (b) This section applies to all officers, directors, agents, and stockholders
24holding 5 percent or more of the stock of any corporation applying for a permit under
25this section.
1(c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may
2not be granted to any person to whom any of the following applies:
AB220,47,43 1. The person has been convicted of a violent misdemeanor, as defined in s.
4941.29 (1g) (b), at least 3 times.
AB220,47,65 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g)
6(a), unless pardoned.
AB220,47,87 3. During the preceding 3 years, the person has been committed under s. 51.20
8for being drug dependent.
AB220,47,139 4. The person chronically and habitually uses alcohol beverages or other
10substances to the extent that his or her normal faculties are impaired. A person is
11presumed to chronically and habitually use alcohol beverages or other substances to
12the extent that his or her normal faculties are impaired if, within the preceding 3
13years, any of the following applies:
AB220,47,1514 a. The person has been committed for involuntary treatment under s. 51.45
AB220,47,1616 b. The person has been convicted of a violation of s. 941.20 (1) (b).
AB220,48,217 c. In 2 or more cases arising out of separate incidents, a court has found the
18person to have committed a violation of s. 346.63 or a local ordinance in conformity
19with that section; a violation of a law of a federally recognized American Indian tribe
20or band in this state in conformity with s. 346.63; or a violation of the law of another
21jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while
22intoxicated, while under the influence of a controlled substance, a controlled
23substance analog, or a combination thereof, with an excess or specified range of
24alcohol concentration, or while under the influence of any drug to a degree that

1renders the person incapable of safely driving, as those or substantially similar
2terms are used in that jurisdiction's laws.
AB220,48,43 5. The person has income that comes principally from gambling or has been
4convicted of 2 or more gambling offenses.
AB220,48,55 6. The person has been guilty of crimes relating to prostitution.
AB220,48,76 7. The person has been guilty of crimes relating to loaning money or anything
7of value to persons holding licenses or permits pursuant to ch. 125.
AB220,48,88 8. The person is under the age of 21.
AB220,48,109 9. The person has not been a resident of this state continuously for at least 90
10days prior to the application date.
AB220,48,1811 (cm) Notwithstanding ss. 66.0134 and 947.21, an applicant with 20 or more
12employees may not receive a permit under this section to operate as a marijuana
13distributor or marijuana retailer unless the applicant certifies to the department
14that the applicant has entered into a labor peace agreement, as defined in s. 94.56
15(1) (a), and will abide by the terms of the agreement as a condition of maintaining
16a valid permit under this section. The applicant shall submit to the department a
17copy of the page of the labor peace agreement that contains the signatures of the
18union representative and the applicant.
AB220,49,319 (cn) The department shall use a competitive scoring system to determine which
20applicants are eligible to receive a permit under this section. The department shall
21issue permits to the highest scoring applicants that it determines will best protect
22the environment; provide stable, family-supporting jobs to local residents; ensure
23worker and consumer safety; operate secure facilities; and uphold the laws of the
24jurisdictions in which they operate. The department may deny a permit to an
25applicant with a low score, as determined under this paragraph. The department

1may request that the applicant provide any information or documentation that the
2department deems necessary for purposes of making a determination under this
AB220,49,114 (d) 1. Before the department issues a new or renewed permit under this section,
5the department shall give notice of the permit application to the governing body of
6the municipality where the permit applicant intends to operate the premises of a
7marijuana producer, marijuana processor, marijuana distributor, marijuana
8retailer, or microbusiness. No later than 30 days after the department submits the
9notice, the governing body of the municipality may file with the department a written
10objection to granting or renewing the permit. At the municipality's request, the
11department may extend the period for filing objections.
AB220,49,2412 2. A written objection filed under subd. 1. shall provide all the facts on which
13the objection is based. In determining whether to grant or deny a permit for which
14an objection has been filed under this paragraph, the department shall give
15substantial weight to objections from a municipality based on chronic illegal activity
16associated with the premises for which the applicant seeks a permit, the premises
17of any other operation in this state for which the applicant holds or has held a valid
18permit or license, the conduct of the applicant's patrons inside or outside the
19premises of any other operation in this state for which the applicant holds or has held
20a valid permit or license, and local zoning ordinances. In this subdivision, “ chronic
21illegal activity" means a pervasive pattern of activity that threatens the public
22health, safety, and welfare of the municipality, including any crime or ordinance
23violation, and is documented in crime statistics, police reports, emergency medical
24response data, calls for service, field data, or similar law enforcement agency records.
1(e) After denying a permit, the department shall immediately notify the
2applicant in writing of the denial and the reasons for the denial. After making a
3decision to grant or deny a permit for which a municipality has filed an objection
4under par. (d), the department shall immediately notify the governing body of the
5municipality in writing of its decision and the reasons for the decision.
AB220,50,76 (f) 1. The department's denial of a permit under this section is subject to judicial
7review under ch. 227.
AB220,50,98 2. The department's decision to grant a permit under this section regardless of
9an objection filed under par. (d) is subject to judicial review under ch. 227.
AB220,50,1110 (g) The department shall not issue a permit under this section to any person
11who does not hold a valid certificate under s. 73.03 (50).
AB220,50,18 12(2) Each person who applies for a permit under this section shall submit with
13the application a $250 fee. Each person who is granted a permit under this section
14shall annually pay to the department a $2,000 fee for as long as the person holds a
15valid permit under this section. A permit issued under this section is valid for one
16year and may be renewed, except that the department may revoke or suspend a
17permit prior to its expiration. A person is not entitled to a refund of the fees paid
18under this subsection if the person's permit is denied, revoked, or suspended.
AB220,50,22 19(3) The department may not issue a permit under this section to operate any
20premises which are within 500 feet of the perimeter of the grounds of any elementary
21or secondary school, playground, recreation facility, child care facility, public park,
22public transit facility, or library.
AB220,51,11 23(4) Under this section, a separate permit is required for and issued to each class
24of permittee, and the permit holder may perform only the operations authorized by
25the permit. A permit issued under this section is not transferable from one person

1to another or from one premises to another. A separate permit is required for each
2place in this state where the operations of a marijuana producer, marijuana
3processor, marijuana distributor, marijuana retailer, or microbusiness occur,
4including each retail outlet. No person who has been issued a permit to operate as
5a marijuana retailer, or who has any direct or indirect financial interest in the
6operation of a marijuana retailer, shall be issued a permit to operate as a marijuana
7producer, marijuana processor, or marijuana distributor. A person who has been
8issued a permit to operate as a microbusiness is not required to hold separate permits
9to operate as a marijuana processor, marijuana distributor, or marijuana retailer,
10but shall specify on the person's application for a microbusiness permit the activities
11that the person will be engaged in as a microbusiness.
AB220,51,13 12(5) Each person issued a permit under this section shall post the permit in a
13conspicuous place on the premises to which the permit relates.
AB220,51,15 14139.973 Regulation. (1) (a) No permittee may employ an individual who is
15under the age of 21 to work in the business to which the permit relates.
AB220,51,1816 (b) Subject to ss. 111.321, 111.322, and 111.335, no permittee may employ an
17individual if any of the conditions under s. 139.972 (1) (c) 1. to 7. applies to the
AB220,51,20 19(2) A retail outlet shall sell no products or services other than usable marijuana
20or paraphernalia intended for the storage or use of usable marijuana.
AB220,51,22 21(3) No marijuana retailer may allow a person who is under the age of 21 to enter
22or be on the premises of a retail outlet in violation of s. 961.71 (2m).
AB220,51,25 23(4) The maximum amount of usable marijuana that a retail outlet may sell to
24an individual consumer in a single transaction may not exceed the permissible
25amount under s. 961.70 (5).
1(4m) A marijuana retailer may not collect, retain, or distribute personal
2information regarding the retailer's customers except that which is necessary to
3complete a sale of usable marijuana.
AB220,52,7 4(5) No marijuana retailer may display any signage in a window, on a door, or
5on the outside of the premises of a retail outlet that is visible to the general public
6from a public right-of-way, other than a single sign that is no larger than 1,600
7square inches identifying the retail outlet by the permittee's business or trade name.
AB220,52,9 8(6) No marijuana retailer may display usable marijuana in a manner that is
9visible to the general public from a public right-of-way.
AB220,52,11 10(7) No marijuana retailer or employee of a retail outlet may consume, or allow
11to be consumed, any usable marijuana on the premises of the retail outlet.
AB220,52,13 12(7m) A marijuana retailer may operate a retail outlet only between the hours
13of 8 a.m. and 8 p.m.
AB220,52,17 14(8) Except as provided under sub. (5), no marijuana producer, marijuana
15processor, marijuana distributor, marijuana retailer, or microbusiness may place or
16maintain, or cause to be placed or maintained, an advertisement of usable marijuana
17in any form or through any medium.
AB220,53,2 18(9) (a) On a schedule determined by the department, every marijuana
19producer, marijuana processor, or microbusiness shall submit representative
20samples of the marijuana and usable marijuana produced or processed by the
21marijuana producer, marijuana processor, or microbusiness to a testing laboratory
22registered under s. 50.86 for testing marijuana and usable marijuana in order to
23certify that the marijuana and usable marijuana comply with standards prescribed
24by the department by rule, including testing for potency and for mold, fungus,

1pesticides, and other contaminants. The laboratory testing the sample shall destroy
2any part of the sample that remains after the testing.
AB220,53,53 (b) Marijuana producers, marijuana processors, and microbusinesses shall
4submit the results of the testing provided under par. (a) to the department in the
5manner prescribed by the department by rule.
AB220,53,106 (c) If a representative sample tested under par. (a) does not meet the standards
7prescribed by the department, the department shall take the necessary action to
8ensure that the entire lot from which the sample was taken is destroyed. The
9department shall promulgate rules to determine lots and lot numbers for purposes
10of this subsection and for the reporting of lots and lot numbers to the department.
AB220,53,14 11(10) (a) A marijuana processor or a microbusiness that operates as a marijuana
12processor shall affix a label to all usable marijuana that the marijuana processor or
13microbusiness sells to marijuana distributors. The label may not be designed to
14appeal to persons under the age of 18. The label shall include all of the following:
AB220,53,1615 1. The ingredients and the tetrahydrocannabinols concentration in the usable
AB220,53,1717 2. The producer's business or trade name.
AB220,53,1818 3. The licensee or registrant number.
AB220,53,1919 4. The unique identification number.
AB220,53,2020 5. The harvest date.
AB220,53,2121 6. The strain name and product identity.
AB220,53,2222 7. The net weight.
AB220,53,2323 8. The activation time.
AB220,53,2524 9. The name of laboratory performing any test, the test batch number, and the
25test analysis dates.
110. The logotype for recreational marijuana developed by the department of
2agriculture, trade and consumer protection under s. 100.145, or the logotype for
3medical marijuana developed by the department of health services under s. 146.46,
4whichever is appropriate.
AB220,54,55 11. Warnings about all of the following:
AB220,54,76 a. Risks of marijuana use and pregnancy and risks of marijuana use by persons
7under the age of 18.
AB220,54,108 b. The prohibitions under ss. 23.33 (4c) (a) 2g. and 3g. and (b) 2n., 30.681 (1)
9(b) 1g. and (bn) 2. and (2) (b) 1g., 343.10 (5) (a) 2., 343.12 (7) (a) 11., 346.63 (1) (b), (2)
10(a) 2., and (2p), and 350.101 (1) (bg) and (cg) and (2) (bg).
AB220,54,1411 (b) No marijuana processor or microbusiness that operates as a marijuana
12processor may make usable marijuana using marijuana grown outside this state.
13The label on each package of usable marijuana may indicate that the usable
14marijuana is made in this state.
AB220,54,16 15(11) (a) No permittee may sell marijuana or usable marijuana that contains
16more than 3 parts tetrahydrocannabinols to one part cannabidiol.
AB220,54,2017 (b) No permittee may sell marijuana or usable marijuana that tests positive
18under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the
19contaminants, or level of contaminants, are identified by a testing laboratory to be
20potentially unsafe to the consumer.
AB220,54,24 21(12) Immediately after beginning employment with a permittee, every
22employee of a permittee shall receive training, approved by the department, on the
23safe handling of marijuana and usable marijuana and on security and inventory
24accountability procedures.
1139.974 Records and reports. (1) Every permittee shall keep accurate and
2complete records of the production and sales of marijuana and usable marijuana in
3this state. The records shall be kept on the premises described in the permit and in
4such manner as to ensure permanency and accessibility for inspection at reasonable
5hours by the department's authorized personnel. The department shall prescribe
6reasonable and uniform methods of keeping records and making reports and shall
7provide the necessary forms to permittees.
AB220,55,17 8(2) If the department determines that any permittee's records are not kept in
9the prescribed form or are in such condition that the department requires an unusual
10amount of time to determine from the records the amount of the tax due, the
11department shall give notice to the permittee that the permittee is required to revise
12the permittee's records and keep them in the prescribed form. If the permittee fails
13to comply within 30 days, the permittee shall pay the expenses reasonably
14attributable to a proper examination and tax determination at the rate of $30 a day
15for each auditor used to make the examination and determination. The department
16shall send a bill for such expenses, and the permittee shall pay the amount of such
17bill within 10 days.
AB220,56,2 18(3) If any permittee fails to file a report when due, the permittee shall be
19required to pay a late filing fee of $10. A report that is mailed is filed on time if it is
20mailed in a properly addressed envelope with postage prepaid, the envelope is
21officially 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
23actually received by the department or at the destination that the department
24prescribes within 5 days of the due date. A report that is not mailed is timely if it
25is received on or before the due date by the department or at the destination that the

1department prescribes. For purposes of this subsection, “mailed" includes delivery
2by a delivery service designated under section 7502 (f) of the Internal Revenue Code.
AB220,56,7 3(4) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating
4to confidentiality of income, franchise, and gift tax returns, apply to any information
5obtained from any permittee under this subchapter on a tax return, report, schedule,
6exhibit, or other document or from an audit report relating to any of those documents,
7except that the department shall publish production and sales statistics.
AB220,56,10 8139.975 Administration and enforcement. (1) The department shall
9administer and enforce this subchapter and promulgate rules necessary to
10administer and enforce this subchapter.
AB220,56,12 11(2) The duly authorized employees of the department have all necessary police
12powers to prevent violations of this subchapter.
AB220,56,19 13(3) Authorized personnel of the department of justice and the department of
14revenue, and any law enforcement officer, within their respective jurisdictions, may
15at all reasonable hours enter the premises of any permittee and examine the books
16and records to determine whether the tax imposed by this subchapter has been fully
17paid and may enter and inspect any premises where marijuana or usable marijuana
18is produced, processed, made, sold, or stored to determine whether the permittee is
19complying with this subchapter.
AB220,56,23 20(4) The department may suspend or revoke the permit of any permittee who
21violates s. 100.30, any provision of this subchapter, or any rules promulgated under
22sub. (1). The department shall revoke the permit of any permittee who violates s.
23100.30 3 or more times within a 5-year period.
AB220,57,6 24(5) No suit shall be maintained in any court to restrain or delay the collection
25or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax

1when due and, if paid under protest, may at any time within 90 days from the date
2of payment sue the state to recover the tax paid. If it is finally determined that any
3part of the tax was wrongfully collected, the secretary of administration shall pay the
4amount wrongfully collected. A separate suit need not be filed for each separate
5payment made by any taxpayer, but a recovery may be had in one suit for as many
6payments as may have been made.
AB220,57,12 7(6) (a) Any person may be compelled to testify in regard to any violation of this
8subchapter of which the person may have knowledge, even though such testimony
9may tend to incriminate the person, upon being granted immunity from prosecution
10in connection with the testimony, and upon the giving of such testimony, the person
11shall not be prosecuted because of the violation relative to which the person has
AB220,57,1413 (b) The immunity provided under par. (a) is subject to the restrictions under
14s. 972.085.
AB220,57,16 15(7) The provisions on timely filing under s. 71.80 (18) apply to the tax imposed
16under this subchapter.
AB220,57,22 17(8) 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
19under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes
20under ch. 71 applies to the collection of the taxes under this subchapter, except that
21the period during which notice of an additional assessment shall be given begins on
22the due date of the report under this subchapter.
AB220,58,2 23(9) Any building or place of any kind where marijuana or usable marijuana is
24sold, possessed, stored, or manufactured without a lawful permit or in violation of

1s. 139.972 or 139.973 is declared a public nuisance and may be closed and abated as
AB220,58,5 3(10) At the request of the secretary of revenue, the attorney general may
4represent this state or assist a district attorney in prosecuting any case arising under
5this subchapter.
AB220,58,7 6(11) The tax imposed under this subchapter does apply to the sale, distribution,
7or delivery of medical marijuana as described in s. 50.85 (1).
AB220,58,14 8139.976 Theft of tax moneys. All marijuana tax moneys received by a
9permittee for the sale of marijuana or usable marijuana on which the tax under this
10subchapter has become due and has not been paid are trust funds in the permittee's
11possession and are the property of this state. Any permittee who fraudulently
12withholds, appropriates, or otherwise uses marijuana tax moneys that are the
13property of this state is guilty of theft under s. 943.20 (1), whether or not the
14permittee has or claims to have an interest in those moneys.
AB220,58,20 15139.977 Seizure and confiscation. (1) All marijuana and usable marijuana
16produced, processed, made, kept, stored, sold, distributed, or transported in violation
17of this subchapter, and all tangible personal property used in connection with the
18marijuana or usable marijuana is unlawful property and subject to seizure by the
19department or a law enforcement officer. Except as provided in sub. (2), all
20marijuana and usable marijuana seized under this subsection shall be destroyed.
AB220,59,2 21(2) If marijuana or usable marijuana on which the tax has not been paid is
22seized as provided under sub. (1), it may be given to law enforcement officers to use
23in criminal investigations or sold to qualified buyers by the department, without
24notice. If the department finds that the marijuana or usable marijuana may

1deteriorate or become unfit for use in criminal investigations or for sale, or that those
2uses would otherwise be impractical, the department may order it destroyed.
AB220,59,9 3(3) If marijuana or usable marijuana on which the tax has been paid is seized
4as provided under sub. (1), it shall be returned to the true owner if ownership can be
5ascertained and the owner or the owner's agent is not involved in the violation
6resulting in the seizure. If the ownership cannot be ascertained or if the owner or
7the owner's agent was guilty of the violation that resulted in the seizure of the
8marijuana or usable marijuana, it may be sold or otherwise disposed of as provided
9in sub. (2).
AB220,60,3 10(4) If tangible personal property other than marijuana or usable marijuana is
11seized as provided under sub. (1), the department shall advertise the tangible
12personal property for sale by publication of a class 2 notice under ch. 985. If no person
13claiming a lien on, or ownership of, the property has notified the department of the
14person's claim within 10 days after last insertion of the notice, the department shall
15sell the property. If a sale is not practical the department may destroy the property.
16If a person claiming a lien on, or ownership of, the property notifies the department
17within the time prescribed in this subsection, the department may apply to the
18circuit court in the county where the property was seized for an order directing
19disposition of the property or the proceeds from the sale of the property. If the court
20orders the property to be sold, all liens, if any, may be transferred from the property
21to the sale proceeds. Neither the property seized nor the proceeds from the sale shall
22be turned over to any claimant of lien or ownership unless the claimant first
23establishes that the property was not used in connection with any violation under
24this subchapter or that, if so used, it was done without the claimant's knowledge or
25consent and without the claimant's knowledge of facts that should have given the

1claimant reason to believe it would be put to such use. If no claim of lien or ownership
2is established as provided under this subsection the property may be ordered
AB220,60,8 4139.978 Interest and penalties. (1) Any person who makes or signs any
5false or fraudulent report under this subchapter or who attempts to evade the tax
6imposed by s. 139.971, or who aids in or abets the evasion or attempted evasion of
7that tax, may be fined not more than $10,000 or imprisoned for not more than 9
8months or both.
AB220,60,11 9(2) 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
116 months or both.
AB220,60,16 12(3) Any person who refuses to permit the examination or inspection authorized
13under s. 139.975 (3) may be fined not more than $500 or imprisoned not more than
146 months or both. The department shall immediately suspend or revoke the permit
15of any person who refuses to permit the examination or inspection authorized under
16s. 139.975 (3).