AB546-AA3,7,1715 77.54 (69) The sales price from the sales of and the storage, use, or other
16consumption of medical cannabis and drug paraphernalia delivered or distributed
17by a dispensary licensed under s. 94.57.
AB546-AA3,17 18Section 17. 94.57 of the statutes is created to read:
AB546-AA3,7,19 1994.57 Medical cannabis. (1) Definitions. In this section:
AB546-AA3,7,2420 (b) “Dispensary” means a person who obtains packaged and labelled medical
21cannabis from a licensed processor and dispenses that cannabis, and cannabis
22paraphernalia, at a permanent location to a member of a treatment team holding a
23valid registry identification card issued under s. 146.44, regardless of whether the
24dispensing is done in exchange for monetary consideration.
AB546-AA3,8,3
1(c) “Laboratory” means a person who obtains medical cannabis from a licensed
2processor and tests that cannabis for tetrahydrocannabinol content and the presence
3of molds, pesticides, heavy metals, and other contaminants.
AB546-AA3,8,54 (d) “Licensee” means a producer, processor, or dispensary that holds a valid
5license under this section.
AB546-AA3,8,66 (e) “Maximum authorized amount" has the meaning given in s. 961.01 (14c).
AB546-AA3,8,97 (f) “Medical cannabis" means a cannabis plant or usable cannabis that is
8intended to be used by a qualifying patient registered under s. 146.44 to alleviate the
9symptoms or effects of the patient's debilitating medical condition or treatment.
AB546-AA3,8,1410 (g) “Processor" means a person who obtains medical cannabis from a licensed
11producer, processes the medical cannabis into usable cannabis or individual
12cannabis plants, packages and labels the usable cannabis or cannabis plants, and
13transfers or sells the packaged and labelled usable cannabis or cannabis plants to a
14licensed dispensary.
AB546-AA3,8,1715 (h) “Producer” means a person who plants, grows, cultivates, or harvests more
16than 12 cannabis plants for medical cannabis and transfers or sells the medical
17cannabis to a licensed processor.
AB546-AA3,8,1818 (i) “Qualifying patient" has the meaning given in s. 146.44 (1) (e).
AB546-AA3,8,1919 (j) “Registry identification card" has the meaning given in s. 146.44 (1) (g).
AB546-AA3,8,2020 (k) “School” has the meaning given in s. 118.257 (1) (d).
AB546-AA3,8,2121 (L) “Treatment team" has the meaning given in s. 961.01 (20t).
AB546-AA3,8,2222 (m) “Usable cannabis” has the meaning given in s. 961.01 (21f).
AB546-AA3,8,2323 (n) “Written certification" has the meaning given in s. 146.44 (1) (h).
AB546-AA3,9,7 24(2) License required. No person may operate in this state as a producer,
25processor, or dispensary without a license issued by the department under this

1section. A person who engages in more than one of these activities shall obtain a
2separate license for each activity. A licensee may engage in the licensed activity at
3more than one location without obtaining a separate license. No licensee may
4operate at more than 2 separate locations, regardless of the number of licenses held.
5A person who is an employee of a licensee is not required to obtain a separate license.
6A person is not required to obtain a license under this section if the person handles
7only industrial hemp and holds a valid license under s. 94.55.
AB546-AA3,9,10 8(3) License criteria. (a) The department may issue a license under this section
9to an applicant only if the applicant has been a resident of this state for at least the
102 years immediately preceding the application.
AB546-AA3,9,1211 (b) The department may not issue a license to, and must revoke a license of, any
12entity to which any of the following applies:
AB546-AA3,9,1313 1. The entity is located within 500 feet of a school, including a charter school.
AB546-AA3,9,1714 2. If the entity is a dispensary, the dispensary distributes to a member of a
15treatment team a number of cannabis plants or an amount of usable cannabis that,
16in the period of distribution, results in the treatment team possessing more than the
17maximum authorized amount.
AB546-AA3,9,2118 3. The dispensary possesses a number of cannabis plants or an amount of
19usable cannabis that exceeds the combined maximum authorized amount for all of
20the treatment teams that use the dispensary by a number or an amount determined
21by the department by rule to be unacceptable.
AB546-AA3,9,2322 4. The applicant, or a principal officer or board member of the applicant, has
23a financial interest in a registered laboratory.
AB546-AA3,10,3
1(4) Licensing procedure; fees; license term. (a) An application for a license
2under this section shall be in writing on a form provided by the department and
3include the licensing application fee under par. (b) 1.
AB546-AA3,10,54 (b) 1. A licensing application fee shall be an amount determined by the
5department but not less than $250.
AB546-AA3,10,76 2. The annual fee for a licensee shall be an amount determined by the
7department but not less than $5,000.
AB546-AA3,10,98 (c) A license is valid unless revoked. Each license shall be issued only for the
9applicant named in the application and may not be transferred or assigned.
AB546-AA3,10,14 10(5) Producers. (a) A licensed producer may plant, grow, cultivate, and harvest
11medical cannabis, including planting, growing, cultivating, and harvesting
12outdoors; transfer or sell the medical cannabis to a licensed processor; and engage
13in any related activities that are necessary for the operation, such as possessing,
14storing, and transporting the medical cannabis.
AB546-AA3,10,1615 (b) A licensed producer may not plant, grow, cultivate, or harvest medical
16cannabis for personal, family, or household use.
AB546-AA3,10,24 17(6) Processors. (a) A licensed processor may obtain medical cannabis from
18a licensed producer; process the medical cannabis into usable cannabis or individual
19cannabis plants; transfer samples of the usable cannabis or individual cannabis
20plants to a registered laboratory; package and label the usable cannabis or individual
21cannabis plants; transfer or sell the usable cannabis or individual cannabis plants
22to a licensed dispensary; and engage in any related activities that are necessary for
23the operation, such as possessing, storing, and transporting the usable cannabis or
24individual cannabis plants.
AB546-AA3,11,7
1(b) Before distributing medical cannabis to a licensed dispensary, a licensed
2processor shall provide samples of each type of cannabis plant and usable cannabis
3that it processes to a registered laboratory to test for mold, fungus, pesticides, and
4other contaminants and may not distribute medical cannabis that tests positive for
5mold, fungus, pesticides, or other contaminants if the contaminants or the level of
6contaminants is identified by the laboratory as being potentially unsafe to an
7individual's health.
AB546-AA3,11,12 8(7) Dispensaries. (a) A licensed dispensary may obtain packaged, labelled
9medical cannabis from a licensed processor; dispense the medical cannabis according
10to the provisions of this section; and engage in any related activities that are
11necessary for the operation, such as possessing, storing, and transporting the
12medical cannabis.
AB546-AA3,11,1413 (b) A licensed dispensary may dispense medical cannabis only to a person who
14presents a valid registry identification card issued under s. 146.44.
AB546-AA3,11,1615 (c) The department shall determine which and how many applicants for a
16dispensary license receive a license on the basis of all of the following:
AB546-AA3,11,1717 1. Convenience to treatment teams and the preferences of treatment teams.
AB546-AA3,11,1918 2. The ability of an applicant to provide to treatment teams a sufficient amount
19of medical cannabis.
AB546-AA3,11,2120 3. The experience the applicant has running a nonprofit organization or a
21business.
AB546-AA3,11,2322 4. The preferences of the governing bodies with jurisdiction over the area in
23which the applicants are located.
AB546-AA3,11,2524 5. The ability of the applicant to keep records confidential and maintain a safe
25and secure facility.
AB546-AA3,12,1
16. The ability of the applicant to abide by the prohibitions under sub. (3) (b).
AB546-AA3,12,10 2(8) Laboratories. The department shall register entities as medical cannabis
3testing laboratories. The department may not register a laboratory if any principal
4officer or board member of the entity has any financial interest in a licensee or an
5applicant for a license under this section. A registered laboratory may obtain
6samples of medical cannabis from a licensed processor; test and certify the
7tetrahydrocannabinol content of the medical cannabis and whether the medical
8cannabis contains any contaminants; and engage in any related activities that are
9necessary for the operation, such as possessing, storing, and transporting the
10medical cannabis. Registered laboratories shall perform the following services:
AB546-AA3,12,1211 (a) Testing medical cannabis for potency and for mold, fungus, pesticides, and
12other contaminants.
AB546-AA3,12,1413 (b) Researching findings related to medical cannabis, including findings that
14identify potentially unsafe levels of contaminants.
AB546-AA3,12,1615 (c) Providing training to persons who hold registry identification cards,
16treatment teams, and persons employed by licensees on all of the following:
AB546-AA3,12,1817 1. The safe and efficient cultivation, harvesting, packaging, labeling, and
18distribution of medical cannabis.
AB546-AA3,12,1919 2. Security and inventory accountability procedures.
AB546-AA3,12,2020 3. The most recent research on medical cannabis.
AB546-AA3,12,24 21(9) Confidentiality. The department may disclose to a law enforcement
22agency only information necessary to verify that a licensee has a valid license issued
23under this section, an entity is complying with rules promulgated under sub. (11), or
24a laboratory is registered under sub. (8).
AB546-AA3,13,3
1(10) Inspections. The department may inspect, without prior notice, the
2premises of an applicant, licensee, or registered laboratory and any records required
3to be retained by a licensee or registered laboratory.
AB546-AA3,13,7 4(11) Rules. (a) The department shall promulgate rules to administer and
5enforce this section. Rules promulgated under this subsection shall be designed to
6promote and prioritize producers, processors, and dispensaries that are small, local
7organizations.
AB546-AA3,13,208 (b) When promulgating rules under this section, the department may, as
9necessary, use the procedure under s. 227.24 to promulgate emergency rules.
10Notwithstanding s. 227.24 (1) (a) and (3), when promulgating emergency rules under
11this subsection, the department is not required to provide evidence that
12promulgating a rule under this subsection as an emergency rule is necessary for the
13preservation of the public peace, health, safety, or welfare and is not required to
14provide a finding of emergency for a rule promulgated under this subsection.
15Notwithstanding s. 227.24 (1) (c) and (2), initial emergency rules and subsequent
16emergency rules promulgated under this subsection remain in effect until the date
17on which permanent rules take effect. Notwithstanding s. 227.24 (1) (e) 1d. and 1g.,
18for emergency rules promulgated under this subsection, the department is not
19required to prepare a statement of scope of the rules or to submit the proposed rules
20in final draft form to the governor for approval.
AB546-AA3,18 21Section 18. 101.123 (1) (h) (intro.) of the statutes is amended to read:
AB546-AA3,13,2322 101.123 (1) (h) (intro.) “Smoking" means burning or holding, or inhaling or
23exhaling smoke from, any of the following items containing tobacco or cannabis:
AB546-AA3,19 24Section 19. 102.43 (9) (e) of the statutes is amended to read:
AB546-AA3,14,4
1102.43 (9) (e) The employee's employment with the employer has been
2suspended or terminated due to misconduct, as defined in s. 108.04 (5), or substantial
3fault, as defined in s. 108.04 (5g) (a), by the employee connected with the employee's
4work, subject to s. 108.04 (5m).
AB546-AA3,20 5Section 20. 106.50 (1m) (h) of the statutes is amended to read:
AB546-AA3,14,136 106.50 (1m) (h) “Discriminate" means to segregate, separate, exclude, or treat
7a person or class of persons unequally in a manner described in sub. (2), (2m), or (2r)
8because of sex, race, color, sexual orientation, disability, religion, national origin,
9marital status, or family status, ; status as a victim of domestic abuse, sexual assault,
10or stalking,; whether the person holds, or has applied for, a registry identification
11card, as defined in s. 146.44 (1) (g), has been the subject of a written certification, as
12defined in s. 146.44 (1) (h), or is or has been a member of a treatment team, as defined
13in s. 961.01 (20t);
lawful source of income,; age,; or ancestry.
AB546-AA3,21 14Section 21. 108.04 (5m) of the statutes is created to read:
AB546-AA3,14,1515 108.04 (5m) Use of medical cannabis. (a) In this subsection:
AB546-AA3,14,1616 1. “Medical cannabis” has the meaning given in s. 94.57 (1) (f).
AB546-AA3,14,1717 2. “Registry identification card” has the meaning given in s. 146.44 (1) (g).
AB546-AA3,14,1818 3. “Written certification” has the meaning given in s. 146.44 (1) (h).
AB546-AA3,14,2019 (b) Notwithstanding sub. (5), “misconduct," for purposes of sub. (5), does not
20include any of the following:
AB546-AA3,14,2421 1. A positive test for cannabis components or metabolites, in the absence of
22other actions or conduct that constitute misconduct under sub. (5). This subdivision
23applies only with respect to an employee with a valid written certification and a valid
24registry identification card.
AB546-AA3,15,2
12. A violation of the employer's policy concerning the use of cannabis, if all of
2the following apply:
AB546-AA3,15,43 a. The employee was using medical cannabis in accordance with a valid written
4certification.
AB546-AA3,15,55 b. The employee held a valid registry identification card.
AB546-AA3,15,76 c. The employee did not use or possess medical cannabis on the employer's
7premises or during working hours.
AB546-AA3,15,98 d. The use did not impair the individual's ability to perform adequately the
9job-related responsibilities of that individual's employment.
AB546-AA3,15,1110 (c) Notwithstanding sub. (5g), “substantial fault," for purposes of sub. (5g), does
11not include any of the following:
AB546-AA3,15,1512 1. A positive test for cannabis components or metabolites, in the absence of
13other acts or omissions that constitute substantial fault under sub. (5). This
14subdivision applies only with respect to an employee with a valid written
15certification and a valid registry identification card.
AB546-AA3,15,1716 2. A violation of the employer's policy concerning the use of cannabis, if all of
17the following apply:
AB546-AA3,15,1918 a. The employee was using medical cannabis in accordance with a valid written
19certification.
AB546-AA3,15,2020 b. The employee held a valid registry identification card.
AB546-AA3,15,2221 c. The employee did not use or possess medical cannabis on the employer's
22premises or during working hours.
AB546-AA3,15,2423 d. The use did not impair the individual's ability to perform adequately the
24job-related responsibilities of that individual's employment.
AB546-AA3,22 25Section 22. 111.32 (15) of the statutes is created to read:
AB546-AA3,16,5
1111.32 (15) “Use of a lawful product off the employer's premises during
2nonworking hours” includes the use of medical cannabis, as defined in s. 94.57 (1) (f),
3off the employer's premises during nonworking hours, but only if such use is in
4accordance with a valid written certification, as defined in s. 146.44 (1) (h), and the
5individual holds a valid registry identification card, as defined in s. 146.44 (1) (g).
AB546-AA3,23 6Section 23. 111.34 (1) (c) of the statutes is created to read:
AB546-AA3,16,137 111.34 (1) (c) 1. Except as provided in subd. 2., refusing to hire or employ,
8barring, suspending, or terminating an individual, or discriminating against an
9individual in promotion, in compensation or in terms, conditions or privileges of
10employment, based on the individual's use of medical cannabis, as defined in s. 94.57
11(1) (f), if such use is in accordance with a valid written certification, as defined in s.
12146.44 (1) (h), and the individual holds a valid registry identification card, as defined
13in s. 146.44 (1) (g).
AB546-AA3,16,1414 2. Subdivision 1. does not apply if any of the following apply:
AB546-AA3,16,1615 a. The employee uses or possesses medical cannabis on the employer's premises
16or during working hours.
AB546-AA3,16,1817 b. The use impairs the individual's ability to undertake adequately the
18job-related responsibilities of that individual's employment.
AB546-AA3,16,2119 c. The refusal, bar, suspension, termination, or discrimination is necessary for
20the employer to avoid losing a monetary or licensing-related benefit under federal
21law or regulations.
AB546-AA3,24 22Section 24. 111.35 (2) (e) of the statutes is amended to read:
AB546-AA3,17,223 111.35 (2) (e) Conflicts with any federal or state statute, rule or regulation.
24This paragraph does not apply with respect to any conflict between the use of medical

1cannabis described in s. 111.32 (15) and violations concerning marijuana or
2tetrahydrocannabinols under 21 USC 841 to 865.
AB546-AA3,25 3Section 25. 111.35 (2) (f) of the statutes is created to read:
AB546-AA3,17,64 111.35 (2) (f) In the case of use of medical cannabis described in s. 111.32 (15),
5would result in the employer losing a monetary or licensing-related benefit under
6federal law or regulations.
AB546-AA3,26 7Section 26. 146.44 of the statutes is created to read:
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