AB1040: Bill Text

AB1040,17,15 (f) “Medical cannabis product” means a product that contains cannabinoids that have been extracted from cannabis plant material, that is intended for use by a patient, as defined in s. 259.01 (9), to alleviate the symptoms of a medical condition or to alleviate the symptoms of treatment for a medical condition, and that is processed for human consumption in the form of concentrates, oils, tinctures, edibles, pills, topical forms, gels, creams, vapors, patches, liquids, or forms administered by a nebulizer. “Medical cannabis product” does not include cannabis in a form that can be smoked.

AB1040,17,18 (g) “Processor” means a person that obtains cannabis from a licensed grower, processes the cannabis into medical cannabis products, and packages and labels the medical cannabis products.

AB1040,17,24 (h) “Resident” means an individual who maintains his or her place of permanent abode in this state. Domiciliary intent is required to establish that a person is maintaining his or her place of permanent abode in this state. Mere ownership of property is not sufficient to establish domiciliary intent. Evidence of domiciliary intent includes the location where the individual votes, pays personal income taxes, or obtains a driver's license.

AB1040,18,2 (2) Department duties. (a) The department shall oversee and regulate the growing of cannabis and the processing and testing of medical cannabis products.

AB1040,18,5 (b) The department shall promulgate rules establishing safety and security requirements for the premises of growers, processors, and laboratories that handle cannabis or medical cannabis products.

AB1040,18,9 (c) Annually, no later than October 15, the department shall submit a report to the chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2) on the status of medical cannabis regulation under this section. The report shall include information on all of the following:

AB1040,18,10 1. The number of current licensees.

AB1040,18,11 2. The location by county of each licensee.

AB1040,18,13 3. The number of applications for licenses under this section received over the previous year and the number of applications approved.

AB1040,18,16 4. The expenses and revenues of the program over the previous year, all funds held in reserve for the program, and an estimation of the expenses and revenues of the program over the following year.

AB1040,18,20 (3) License required. No person may operate in this state as a grower, processor, or laboratory without a license issued by the department under this section. A person who is an employee of a licensee is not required to obtain a separate license.

AB1040,18,23 (4) Cannabis grower licenses. (a) License criteria. The department may issue a grower license to an applicant only if the department determines that all of the following requirements are met:

AB1040,19,11 1. The applicant, or each principal officer or board member of the applicant, has not been convicted of any crime, unless at least 10 years have passed since the completion of any sentence imposed for the crime, including any period of incarceration, parole, or extended supervision, and any period of probation imposed for the crime. The department, with the assistance of the department of justice, shall conduct a background investigation of any applicant or each principal officer or board member of any applicant who applies for a grower license under this section, which shall include requiring all such persons to be fingerprinted on 2 fingerprint cards each bearing a complete set of the person's fingerprints, or by other technologies approved by law enforcement agencies. The department of justice shall submit any such fingerprint cards to the federal bureau of investigation for the purposes of verifying the identity of the person fingerprinted and obtaining records of his or her criminal arrests and convictions.

AB1040,19,13 2. The applicant pays the annual fee for growers established by the department under sub. (7).

AB1040,19,15 3. The applicant is a resident, or at least 80 percent of the principal officers or board members of the applicant are residents.

AB1040,19,18 4. The applicant submits to an inspection of the premises by the department, and the premises meets all requirements established by the department under sub. (2).

AB1040,19,23 (b) Authorized activities. 1. A licensed grower may plant, grow, cultivate, and harvest cannabis; transport cannabis to or from any licensee; transfer or sell cannabis to a licensed processor that is contracted with the department under sub. (5); and engage in any related activities that are necessary for the operation, such as possessing and storing cannabis.

AB1040,19,24 2. A licensed grower may operate only within an enclosed, locked facility.

AB1040,20,2 3. A licensed grower may not plant, grow, cultivate, or harvest cannabis for personal, family, or household use.

AB1040,20,5 (c) License renewal. A licensed grower shall annually renew the license issued under this section by applying to the department and paying the annual fee for growers established by the department under sub. (7).

AB1040,20,15 (5) Medical cannabis processor contract, licenses. (a) Request for proposals; number of licenses, contracts limited. 1. The department shall obtain and review proposals from entities in this state to process medical cannabis products under this section in accordance with the department's request-for-proposal procedures. Except as provided under subd. 2., the department shall enter into a contract with only one processor to process medical cannabis products in this state until there are at least 50,000 patients included in the patient and caregiver registry under s. 259.04, after which the department may license and contract with as many additional processors as necessary to process an adequate supply of medical cannabis products to meet the demand of patients in this state.

AB1040,20,18 2. A processor with which the department contracts under subd. 1. may contract with one or more subcontractors to provide the processor's services. Each subcontractor shall obtain a separate license under this subsection.

AB1040,20,21 (b) License criteria. The department may issue a processor license to an applicant only if the department determines that all of the following requirements are met:

AB1040,21,9 1. The applicant, or each principal officer or board member of the applicant, has not been convicted of any crime, unless at least 10 years have passed since the completion of any sentence imposed for the crime, including any period of incarceration, parole, or extended supervision, and any period of probation imposed for the crime. The department, with the assistance of the department of justice, shall conduct a background investigation of any applicant or each principal officer or board member of any applicant who applies for a processor license under this subsection, which shall include requiring all such persons to be fingerprinted on 2 fingerprint cards each bearing a complete set of the person's fingerprints, or by other technologies approved by law enforcement agencies. The department of justice shall submit any such fingerprint cards to the federal bureau of investigation for the purposes of verifying the identity of the person fingerprinted and obtaining records of his or her criminal arrests and convictions.

AB1040,21,11 2. The applicant, or each principal officer or board member of the applicant, is at least 21 years of age.

AB1040,21,13 3. The applicant pays the annual fee for processors established by the department under sub. (7).

AB1040,21,15 4. The applicant is a resident, or at least 80 percent of the principal officers or board members of the applicant are residents.

AB1040,21,18 5. The applicant submits to an inspection of the premises by the department, and the premises meets all requirements established by the department under sub. (2).

AB1040,21,19 6. The applicant has entered into a contract under par. (a) 1. or 2.

AB1040,21,24 (c) Authorized activities and requirements. 1. A licensed processor may obtain cannabis from a licensed grower, process cannabis into medical cannabis products, package and label medical cannabis products, transport cannabis or medical cannabis products to or from any licensee, and transfer, transport, or sell medical cannabis products to dispensaries.

AB1040,21,25 2. A licensed processor may operate only within an enclosed, locked facility.

AB1040,22,3 3. A licensed processor shall process cannabis into medical cannabis products in a manner that minimizes the products' appeal to individuals under the age of 18. The department may establish, by rule, additional processing requirements.

AB1040,22,5 4. Before selling, transferring, or transporting medical cannabis products to any dispensary, a licensed processor shall do all of the following:

AB1040,22,11 a. Provide samples of each lot of medical cannabis product that it processes to a licensed laboratory and receive certified test results of those samples showing the tetrahydrocannabinol content of the medical cannabis products and showing that the medical cannabis products do not contain unsafe levels of any molds, pesticides, heavy metals, or any other contaminant for which the department requires, by rule, the medical cannabis products to be tested.

AB1040,22,14 b. Package the medical cannabis products in child-resistant packaging and in a manner that minimizes its appeal to individuals under the age of 18. The department may establish, by rule, additional packaging requirements.

AB1040,22,17 c. Attach a label to the packaging that identifies the tetrahydrocannabinol content of the medical cannabis product and any other information required to be included by the department by rule.

AB1040,22,21 5. The packaging of medical cannabis products, and the labels attached to such packaging, may not include any statement or other indication that the consumption or use of medical cannabis may cure, mitigate, treat, or prevent any disease or medical condition.

AB1040,22,24 (d) License renewal. A licensed processor shall annually renew the license issued under this section by applying to the department and paying the annual fee for processors established by the department under sub. (7).

AB1040,23,6 (6) Medical cannabis testing laboratory contract, licenses. (a) Request for proposals; contract required. The department shall obtain and review proposals from entities in this state to test medical cannabis products under this section in accordance with the department's request-for-proposal procedures. The department shall enter into contracts with a sufficient number of laboratories under this section to assure the safety of medical cannabis products in this state.

AB1040,23,9 (b) License criteria. The department shall issue a laboratory license to an applicant if the department determines that all of the following requirements are met:

AB1040,23,22 1. The applicant, or each principal officer or board member of the applicant, has not been convicted of any crime, unless at least 10 years have passed since the completion of any sentence imposed for the crime, including any period of incarceration, parole, or extended supervision, and any period of probation imposed for the crime. The department, with the assistance of the department of justice, shall conduct a background investigation of any applicant or each principal officer or board member of any applicant who applies for a laboratory license under this section, which shall include requiring all such persons to be fingerprinted on 2 fingerprint cards each bearing a complete set of the person's fingerprints, or by other technologies approved by law enforcement agencies. The department of justice shall submit any such fingerprint cards to the federal bureau of investigation for the purposes of verifying the identity of the person fingerprinted and obtaining records of his or her criminal arrests and convictions.

AB1040,23,24 2. The applicant, or each principal officer or board member of the applicant, is at least 21 years of age.

AB1040,24,2 3. The applicant pays the annual fee for laboratories established by the department under sub. (7).

AB1040,24,4 4. The applicant is a resident, or at least 80 percent of the principal officers or board members of the applicant are residents.

AB1040,24,7 5. The applicant submits to an inspection of the premises by the department, and the premises meets all requirements established by the department under sub. (2).

AB1040,24,8 6. The applicant has entered into a contract under par. (a).

AB1040,24,12 (c) Authorized activities and requirements. 1. A licensed laboratory may obtain medical cannabis products from a licensed processor, conduct testing on medical cannabis products, and transport medical cannabis products to or from any licensee or dispensary.

AB1040,24,13 2. A licensed laboratory may operate only within an enclosed, locked facility.

AB1040,24,17 3. When testing medical cannabis products, a licensed laboratory shall test the products for tetrahydrocannabinol content and the levels of any molds, pesticides, heavy metals, and any other contaminant for which the department requires, by rule, the medical cannabis products to be tested.

AB1040,24,20 (d) License renewal. A licensed laboratory shall annually renew the license issued under this section by applying to the department and paying the annual fee for laboratories established by the department under sub. (7).

AB1040,24,24 (7) License fees. (a) The department shall, not later than January 31 of each year, propose an update to the fees required under subs. (4) (a) 2. and (c), (5) (b) 3. and (d), and (6) (b) 3. and (d) to provide sufficient moneys to pay for the operations of the department required under this section.

AB1040,25,10 (b) Not later than 14 days after proposing updated fees under par. (a), the department shall send a report detailing the proposed fee adjustments to the cochairpersons of the joint committee on finance. If, within 14 working days after the date that the department submits the report, the cochairpersons of the committee notify the secretary that the committee has scheduled a meeting for the purpose of reviewing the proposed adjustments, the department may not impose the fee adjustments unless the committee approves the report. If the cochairpersons of the committee do not notify the secretary, the department may impose the fee adjustments and shall notify licensees of the fee adjustments by posting the fee adjustments on the department's website.

AB1040,25,22 (c) If the joint committee on finance schedules a meeting for the purpose of reviewing the proposed fee adjustments under par. (b) and disapproves the proposed fee adjustments, the department may resubmit, no later than 60 days after the committee disapproves the proposed adjustments and using the process described under par. (b), proposed adjustments to the fees required under subs. (4) (a) 2. and (c), (5) (b) 3. and (d), and (6) (b) 3. and (d) if necessary to provide sufficient moneys to pay for the operations of the department required under this section. If the joint committee on finance schedules a meeting for purposes of reviewing the resubmitted proposed fee adjustments under this paragraph and disapproves the resubmitted proposed fee adjustments, the department may not impose the fee adjustments and may not resubmit further proposed fee adjustments until the department proposes an update to the fees the following year as provided under par. (a).

AB1040,26,2 (8) Confidentiality. The department shall ensure that any of the following information that is in the department's possession is confidential and not open to public inspection or copying under s. 19.35 (1), except that it shall be made available to a law enforcement agency or law enforcement officer:

AB1040,26,4 (a) Information relating to the locations of proposed or existing growers, processors, and laboratories.

AB1040,26,6 (b) Personal information relating to a licensee or applicant under this section, other than the licensee's or applicant's name.

AB1040,26,8 (c) Information obtained about a licensee or applicant as a result of any criminal history search performed under this section.

AB1040,26,9 (d) Any other information that could create a security risk if disclosed.

AB1040,26,11 (9) Advertising prohibited. No licensed processor or laboratory may advertise its services.

AB1040,26,23 (10) Enforcement and penalties. (a) Enforcement. The department may conduct investigations, hold hearings, and make findings as to whether a person has violated any provisions of this section or any rule promulgated under this section. If, after holding a public hearing, the department determines that a person has violated any provision of this section or any rule promulgated under this section, the department may impose a penalty pursuant to par. (b). If the department has reason to believe that a person has engaged in activities for which a license is required under this section without a license issued by the department, the department may petition the circuit court for a temporary restraining order or an injunction as provided in ch. 813. The enforcement actions authorized under this paragraph are cumulative. The imposition of an enforcement action does not bar the imposition of any other enforcement action.

AB1040,27,3 (b) Penalties. 1. If the department determines that a licensee has negligently violated this section, the department may establish, and the licensee shall comply with, a plan to correct the negligent violation, which shall include all of the following:

AB1040,27,5 a. A reasonable date by which the licensee is required to correct the negligent violation.

AB1040,27,8 b. A requirement that the licensee periodically report to the department on the compliance of the licensee with the department's plan for a period of not less than the following 2 years.

AB1040,27,10 2. The department may suspend or revoke the license of any licensee that violates any provision of this section or rules promulgated under this section.

AB1040,27,15 3. a. Except as provided in subd. 3. b., any person who violates any provision of this section or any rules promulgated under this section may be required to forfeit not less than $200 nor more than $5,000 or, for an offense committed within 5 years of an offense for which a penalty has been assessed under this section, may be required to forfeit not less than $400 nor more than $10,000.

AB1040,27,18 b. Any person who violates any provision of this section or any rules promulgated under this section by fraud shall be fined not less than $2,000 nor more than $10,000.

AB1040,27,21 4. All of the remedies and penalties under this section shall be cumulative. No action for recovery of one penalty shall be a bar to or affect the recovery of any other penalty or be a bar to any criminal prosecution.

AB1040,20 Section 20 . 106.50 (1) of the statutes is amended to read:

AB1040,28,12 106.50 (1) Intent. It is the intent of this section to render unlawful discrimination in housing. It is the declared policy of this state that all persons shall have an equal opportunity for housing regardless of sex, race, color, sexual orientation, disability, religion, national origin, use of medical cannabis products, as defined in s. 94.57 (1) (f), marital status, family status, status as a victim of domestic abuse, sexual assault, or stalking, lawful source of income, age, or ancestry and it is the duty of the political subdivisions to assist in the orderly prevention or removal of all discrimination in housing through the powers granted under ss. 66.0125 and 66.1011. The legislature hereby extends the state law governing equal housing opportunities to cover single-family residences that are owner-occupied. The legislature finds that the sale and rental of single-family residences constitute a significant portion of the housing business in this state and should be regulated. This section shall be considered an exercise of the police powers of the state for the protection of the welfare, health, peace, dignity, and human rights of the people of this state.

AB1040,21 Section 21 . 106.50 (1m) (h) of the statutes is amended to read:

AB1040,28,20 106.50 (1m) (h) “Discriminate" means to segregate, separate, exclude, or treat a person or class of persons unequally in a manner described in sub. (2), (2m), or (2r) because of sex, race, color, sexual orientation, disability, religion, national origin, marital status, or family status, ; status as a victim of domestic abuse, sexual assault, or stalking,; whether the person is included on the patient and caregiver registry under s. 259.04 or possesses or uses medical cannabis products in accordance with ch. 259; lawful source of income,; age,; or ancestry.

AB1040,22 Section 22 . 106.50 (1m) (nm) of the statutes is amended to read:

AB1040,29,2 106.50 (1m) (nm) “Member of a protected class" means a group of natural persons, or a natural person, who may be categorized because of sex, race, color, disability, sexual orientation, religion, national origin, use of medical cannabis products, as defined in s. 94.57 (1) (f), marital status, family status, status as a victim of domestic abuse, sexual abuse, or stalking, lawful source of income, age, or ancestry.

AB1040,23 Section 23 . 106.50 (5m) (f) 1. of the statutes is amended to read:

AB1040,29,9 106.50 (5m) (f) 1. Nothing in this section prohibits an owner or agent from requiring that a person who seeks to buy or rent housing supply information concerning family status, and marital, financial, and business status but not concerning race, color, disability, sexual orientation, ancestry, national origin, use of medical cannabis products, as defined in s. 94.57 (1) (f), religion, creed, status as a victim of domestic abuse, sexual assault, or stalking, or, subject to subd. 2., age.

AB1040,24 Section 24 . 108.04 (5) (a) (intro.) of the statutes is amended to read:

AB1040,29,15 108.04 (5) (a) (intro.) A violation by an employee of an employer's reasonable written policy concerning the use of alcohol beverages, or use of a controlled substance or a controlled substance analog, including a drug-free workplace policy and a policy that includes testing for the presence of tetrahydrocannabinols, if the employee:

AB1040,25 Section 25 . 111.32 (9m) of the statutes is created to read:

AB1040,29,17 111.32 (9m) “Lawful product” does not include a medical cannabis product.

AB1040,26 Section 26 . 111.32 (12c) of the statutes is created to read:

AB1040,29,20 111.32 (12c) “Medical cannabis product” has the meaning given in s. 94.57 (1) (f).

AB1040,27 Section 27 . 111.34 (1) (b) of the statutes is amended to read:

AB1040,29,25 111.34 (1) (b) Refusing Subject to sub. (3), refusing to reasonably accommodate an employee's or prospective employee's disability unless the employer can demonstrate that the accommodation would pose a hardship on the employer's program, enterprise or business.

AB1040,28 Section 28. 111.34 (3) of the statutes is created to read:

AB1040,30,5 111.34 (3) (a) Notwithstanding s. 111.322, this subchapter does not apply with respect to any act of an employer based upon an individual's use of a medical cannabis product, the individual's other use of cannabis, as defined in s. 94.57 (1) (a), or the individual testing positive for the presence of tetrahydrocannabinols.

AB1040,30,10 (b) Nothing in this subchapter requires an employer to permit, accommodate, or allow the medical use of a medical cannabis product, or to modify any job or working conditions of any employee who engages in the medical use of medical cannabis products or who for any reason seeks to engage in the medical use of medical cannabis products.

AB1040,30,18 (c) Nothing in this subchapter prohibits an employer from refusing to hire, terminating, discharging, disciplining, or otherwise discriminating against an individual with respect to hiring, discharging, tenure, promotion, or compensation, or in terms, conditions, or privileges of employment as a result, in whole or in part, of the individual's medical use of a medical cannabis product, the individual's other use of cannabis, as defined in s. 94.57 (1) (a), or the individual testing positive for the presence of tetrahydrocannabinols, regardless of any impairment or lack of impairment resulting therefrom.

AB1040,29 Section 29. 175.60 (2) (b) of the statutes is amended to read:

AB1040,30,25 175.60 (2) (b) The department may not impose conditions, limitations, or requirements that are not expressly provided for in this section on the issuance, scope, effect, or content of a license. The department may not refuse to issue or renew a license, or may not suspend or revoke a license, solely because of an individual's lawful use or possession of a medical cannabis product under s. 94.57 or ch. 259 or because the individual is a registered patient, as defined in s. 961.01 (20hm).