LRBs0307/1
MCP:cjs
2023 - 2024 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 4,
TO ASSEMBLY BILL 393
February 15, 2024 - Offered by Representatives Madison and Ortiz-Velez.
AB393-ASA4,2,2
1An Act to repeal 961.571 (1) (a) 7., 961.571 (1) (a) 11. e. and 961.571 (1) (a) 11.
2k. and L.;
to renumber and amend 115.35 (1);
to amend 20.115 (7) (gc),
349.148 (4) (a), 49.79 (5) (a), 59.54 (25) (title), 59.54 (25) (a) (intro.), 66.0107 (1)
4(bm), 111.35 (2) (e), 114.09 (2) (bm) 1. (intro.), 114.09 (2) (bm) 4., 157.06 (11) (i),
5175.35 (2g) (c) 4. a., 289.33 (3) (d), 349.02 (2) (b) 4. and 961.571 (1) (a) 11. (intro.);
6and
to create 16.282, 20.115 (7) (ge), 20.192 (1) (t), 20.255 (2) (r), 20.395 (5) (db),
720.435 (1) (s), 20.437 (3) (r), 20.505 (1) (t), 20.566 (1) (bn), 20.835 (2) (eq), 25.316,
848.47 (20), 66.04185, 73.17, 77.54 (71), 94.56, 94.57, 108.02 (18r), 108.02 (21g),
9108.04 (5m), 108.133 (1) (em), 111.32 (9m), 111.32 (11m), subchapter IV of
10chapter 139 [precedes 139.97], 157.06 (11) (hm), 175.35 (2g) (b) 3., 238.139,
11250.22 and subchapter VIII of chapter 961 [precedes 961.70] of the statutes;
12relating to: legalizing the possession of medical marijuana; regulating the
13production, processing, and sale of marijuana; expunging or redesignating past
1convictions for marijuana-related crimes; equity grants; making an
2appropriation; and providing a penalty.
Analysis by the Legislative Reference Bureau
Under this bill, a qualifying patient of any age may possess marijuana for
medical purposes, and a person may produce, process, or sell marijuana if the person
has a permit. This bill creates an excise tax for the privilege of producing, processing,
distributing, or selling marijuana in this state, and 60 percent of the revenue
collected from the tax is deposited into a segregated fund called the “community
reinvestment fund.” Under the bill, qualifying patient is not subject to sales or excise
taxes on the purchase or use of marijuana. The bill does not affect federal law, which
generally prohibits persons from manufacturing, delivering, or possessing
marijuana and applies to both intrastate and interstate violations.
Legalizing the possession of medical marijuana
Current law prohibits a person from manufacturing, distributing, or delivering
marijuana; possessing marijuana with the intent to manufacture, distribute, or
deliver it; possessing or attempting to possess marijuana; using drug paraphernalia;
or possessing drug paraphernalia with the intent to produce, distribute, or use a
controlled substance. The bill changes state law to allow a qualifying patient to
possess marijuana for medical purposes. Under the bill, a qualifying patient is an
individual of any age who has been diagnosed by a physician as having or undergoing
a debilitating medical condition such as cancer, glaucoma, AIDS, or another specified
condition, or is undergoing a debilitating medical treatment.
The bill also eliminates, for qualifying patients, the prohibition on possessing
or using drug paraphernalia that relates to marijuana consumption. In addition,
qualifying patients may cultivate as many as six marijuana plants for personal use.
Medical marijuana registry
The bill requires DOR to create and maintain a medical marijuana registry
program whereby an individual who is a qualifying patient may obtain a registry
identification card and purchase marijuana from a retail establishment.
Regulating the production, processing, and sale of marijuana
Under the bill, no person may sell or distribute, or possess with the intent to sell
or distribute, marijuana unless the person has a permit from the Department of
Revenue.
The bill requires a person to obtain separate permits from DOR to produce,
process, distribute, or sell marijuana or to sell marijuana for on-premises
consumption (marijuana lounge), and requires marijuana producers and processors
to obtain additional permits from the Department of Agriculture, Trade and
Consumer Protection. The requirements for obtaining these permits differ based on
whether the permit is issued by DOR or DATCP but, in general, a person may not
obtain such a permit if he or she is not a state resident, is under the age of 21, or has
been convicted of certain crimes or committed certain offenses. In addition, a person
may not operate under a DOR or DATCP permit within 500 feet of a school,
playground, recreation facility, child care facility, public park, public transit facility,
or library, and a person may not operate a marijuana lounge unless the municipality
or county in which the marijuana lounge is located has enacted an ordinance
authorizing such operation. A person who holds a permit from DOR must also
comply with certain operational requirements.
Under the bill, a permit applicant with 20 or more employees may not receive
a permit from DATCP or DOR unless the applicant certifies that the applicant has
entered into a labor peace agreement with a labor organization. The labor peace
agreement prohibits the labor organization and its members from engaging in any
economic interference with persons doing business in this state, prohibits the
applicant from disrupting the efforts of the labor organization to communicate with
and to organize and represent the applicant's employees, and provides the labor
organization access to areas in which the employees work to discuss employment
rights and the terms and conditions of employment. Current law prohibits the state
and any local unit of government from requiring a labor peace agreement as a
condition for any regulatory approval. The permit requirements under the bill are
not subject to that prohibition.
The bill also requires DATCP and DOR to use a competitive scoring system to
determine which applicants are eligible to receive permits. Each department must
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. Each department may deny a permit to an
applicant with a low score.
The bill prohibits a DOR permittee from selling, distributing, or transferring
marijuana to a person other than another DOR permittee or a qualifying patient.
The bill also prohibits a DOR permittee from selling, distributing, or transferring
marijuana to a person under the age of 21 and from allowing such an underage
person to be on premises for which a permit is issued. If a permittee violates one of
those prohibitions, the permittee may be subject to a civil forfeiture of not more than
$500 and the permit may be suspended for up to 90 days.
Previous convictions relating to marijuana
The bill requires the director of state courts to review records of acts that have
been decriminalized under the bill. If a record is for a conviction for an act that the
bill decriminalizes or for which the bill lessens the penalty, the sentencing court must
be notified. If the act was a misdemeanor, the court must dismiss the conviction and
expunge the record or, if applicable, redesignate it to a lesser crime. If the act was
a felony, the court must determine if it is in the public interest to dismiss the
conviction and expunge the record or, if applicable, redesignate it to a lesser crime.
The presumption is that such actions are in the public interest unless there is clear
and convincing evidence that the actions would create a risk to public safety. If the
felony is expunged or redesignated to a misdemeanor or civil forfeiture, the
sentencing court must determine if there is good cause to restore the person's right
to possess a firearm. Finally, if the record is for an arrest or a charge for an act that
the bill decriminalizes or for which the bill lessens the penalty, the director of state
courts must expunge such records.
Registration for THC testing labs
The bill requires DATCP to register entities as tetrahydrocannabinols
(THC)-testing laboratories. The laboratories must test marijuana for contaminants;
research findings on the use of medical marijuana; and provide training on safe and
efficient cultivation, harvesting, packaging, labeling, and distribution of marijuana,
security and inventory accountability, and research on medical marijuana.
Discrimination based on marijuana use
Under the fair employment law, no employer or other person may engage in any
act of employment discrimination against any individual on the basis of the
individual's use or nonuse of lawful products off the employer's premises during
nonworking hours, subject to certain exceptions, one of which is if the use impairs
the individual's ability to undertake adequately the job-related responsibilities of
that individual's employment. The bill specifically defines marijuana, as used by a
qualifying patient, as a lawful product for purposes of the fair employment law, such
that no person may engage in any act of employment discrimination against a
qualifying patient because of the qualifying patient's use of marijuana off the
employer's premises during nonworking hours, subject to those exceptions.
Under current law, an individual may be disqualified from receiving
unemployment insurance benefits if he or she is terminated because of misconduct
or substantial fault. The bill specifically provides that a qualifying patient's use of
marijuana off the employer's premises during nonworking hours does not constitute
misconduct or substantial fault unless termination for that use is permitted under
one of the exceptions under the fair employment law.
Unless federal law requires otherwise, the bill prohibits a hospital, physician,
organ procurement organization, or other person from determining the ultimate
recipient of an anatomical gift on the sole basis of a positive test for the use of
marijuana by a potential recipient that is a qualifying patient.
Drug screening and testing
The bill exempts qualifying patients from testing requirements for THC for
certain public assistance programs. Currently, a participant in a community service
job or transitional placement under the Wisconsin Works program (W2) or a recipient
of the FoodShare program, also known as the food stamp program, who is convicted
of possession, use, or distribution of a controlled substance must submit to a test for
controlled substances as a condition of continued eligibility. The Department of
Health Services is currently required to request a waiver of federal Medicaid law to
require drug screening and testing as a condition of eligibility for the childless adult
demonstration project in the Medical Assistance program. Current law also requires
DHS to promulgate rules to develop and implement a drug screening, testing, and
treatment policy for able-bodied adults without dependents in the FoodShare
employment and training program. The bill exempts qualifying patients from
THC-testing requirements for all of those programs.
Under current law, the Department of Workforce Development must establish
a program to test claimants who apply for unemployment insurance benefits for the
presence of controlled substances, as defined under federal law. If a claimant tests
positive for a controlled substance, the claimant may be denied UI benefits, subject
to certain exceptions and limitations. The bill excludes qualifying patients from this
testing requirement. As such, under the bill, qualifying patient who tests positive
for THC may not be denied UI benefits.
Equity grants and program for law enforcement training
The bill provides for a number of grants to be paid from the revenue generated
from the excise tax on marijuana that is deposited into the community reinvestment
fund. For example, the bill requires the Department of Administration to provide
grants to public, private, and nonprofit entities in this state that promote diversity
and advance equity and inclusion, including promoting the inclusion of women and
racial and ethnic minorities in the production and sale of marijuana. In addition, the
bill directs DHS to award grants to community organizations to implement
community health worker care models. The bill also directs DHS to award grants
to community organizations and local or tribal health departments to hire health
equity strategists and to implement health equity action plans in small geographic
areas.
The bill appropriates $125,000 in fiscal year 2023-24 and $250,000 in fiscal
year 2024-25 for the Department of Transportation's Drug Evaluation and
Classification Program. The program provides training for law enforcement officers
and others in the recognition of drug influence and impairment.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB393-ASA4,1
1Section 1
. 16.282 of the statutes is created to read:
AB393-ASA4,5,6
216.282 Equity grants. The department shall develop and administer a grants
3program to provide grants to public, private, and nonprofit entities in this state that
4promote diversity and advance equity and inclusion, including promoting the
5inclusion of women and racial and ethnic minorities in the production and sale of
6marijuana.
AB393-ASA4,3
1Section
3. 20.115 (7) (gc) of the statutes is amended to read:
AB393-ASA4,7,42
20.115
(7) (gc)
Industrial hemp
and marijuana. All moneys received under s.
394.55 for regulation of activities relating to industrial hemp under s. 94.55
and to
4marijuana under s. 94.56.
AB393-ASA4,4
5Section 4
. 20.115 (7) (ge) of the statutes is created to read:
AB393-ASA4,7,86
20.115
(7) (ge)
Marijuana producers and processors. All moneys received under
7s. 94.56 for regulation of activities relating to marijuana under s. 94.56 and for
8conducting public awareness campaigns under s. 94.56.
AB393-ASA4,5
9Section 5
. 20.192 (1) (t) of the statutes is created to read:
AB393-ASA4,7,1210
20.192
(1) (t)
Underserved community grants. From the community
11reinvestment fund, the amounts in the schedule for the purpose of providing
12underserved community grants under s. 238.139.
AB393-ASA4,6
13Section 6
. 20.255 (2) (r) of the statutes is created to read:
AB393-ASA4,7,1614
20.255
(2) (r)
Sparsity aid; community reinvestment fund supplement. From
15the community reinvestment fund, the amounts in the schedule for sparsity aid to
16school districts under s. 115.436.
AB393-ASA4,7
1Section
7. 20.395 (5) (db) of the statutes is created to read:
AB393-ASA4,8,42
20.395
(5) (db)
Drug evaluation and classification program. From the general
3fund, the amounts in the schedule for the drug evaluation and classification
4program.
AB393-ASA4,8
5Section 8
. 20.435 (1) (s) of the statutes is created to read:
AB393-ASA4,8,76
20.435
(1) (s)
Health equity grants. From the community reinvestment fund,
7the amounts in the schedule for health equity grants under s. 250.22.