AB440-SSA1,24,14 12(13) “Usable marijuana" means marijuana that has been processed for human
13consumption and includes dried marijuana flowers, marijuana-infused products,
14and marijuana edibles.
AB440-SSA1,24,19 15139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana
16producer at the rate of 15 percent of the sales price on each wholesale sale or transfer
17in this state of marijuana to a marijuana processor. This paragraph applies to a
18microbusiness that transfers marijuana to a processing operation within the
19microbusiness.
AB440-SSA1,24,2320 (b) An excise tax is imposed on a marijuana retailer at the rate of 10 percent
21of the sales price on each retail sale in this state of usable marijuana, except that the
22tax does not apply to sales of usable marijuana to an individual who holds a valid tax
23exemption certificate issued under s. 73.17 (4).
AB440-SSA1,25,2 24(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
25to the department no later than the 15th day of the month following the month in

1which the person's tax liability is incurred and shall include with the payment a
2return on a form prescribed by the department.
AB440-SSA1,25,7 3(3) For purposes of this section, a marijuana producer may not sell marijuana
4directly to a marijuana distributor or marijuana retailer, and a marijuana retailer
5may purchase usable marijuana for resale only from a marijuana distributor. This
6subsection does not apply to a microbusiness that transfers marijuana or usable
7marijuana to another operation with the microbusiness.
AB440-SSA1,25,13 8139.972 Permits required. (1) (a) No person may operate in this state as a
9marijuana producer, marijuana processor, marijuana distributor, marijuana
10retailer, or microbusiness without first filing an application for and obtaining the
11proper permit from the department to perform such operations. In addition, no
12person may operate in this state as a marijuana producer or marijuana processor
13without first filing an application for and obtaining the proper permit under s. 94.56.
AB440-SSA1,25,1614 (b) This section applies to all officers, directors, agents, and stockholders
15holding 5 percent or more of the stock of any corporation applying for a permit under
16this section.
AB440-SSA1,25,1817 (c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may
18not be granted to any person to whom any of the following applies:
AB440-SSA1,25,2019 1. The person has been convicted of a violent misdemeanor, as defined in s.
20941.29 (1g) (b), at least 3 times.
AB440-SSA1,25,2221 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g)
22(a), unless pardoned.
AB440-SSA1,25,2423 3. During the preceding 3 years, the person has been committed under s. 51.20
24for being drug dependent.
AB440-SSA1,26,5
14. The person chronically and habitually uses alcohol beverages or other
2substances to the extent that his or her normal faculties are impaired. A person is
3presumed to chronically and habitually use alcohol beverages or other substances to
4the extent that his or her normal faculties are impaired if, within the preceding 3
5years, any of the following applies:
AB440-SSA1,26,76 a. The person has been committed for involuntary treatment under s. 51.45
7(13).
AB440-SSA1,26,88 b. The person has been convicted of a violation of s. 941.20 (1) (b).
AB440-SSA1,26,189 c. In 2 or more cases arising out of separate incidents, a court has found the
10person to have committed a violation of s. 346.63 or a local ordinance in conformity
11with that section; a violation of a law of a federally recognized American Indian tribe
12or band in this state in conformity with s. 346.63; or a violation of the law of another
13jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while
14intoxicated, while under the influence of a controlled substance, a controlled
15substance analog, or a combination thereof, with an excess or specified range of
16alcohol concentration, or while under the influence of any drug to a degree that
17renders the person incapable of safely driving, as those or substantially similar
18terms are used in that jurisdiction's laws.
AB440-SSA1,26,2019 5. The person has income that comes principally from gambling or has been
20convicted of 2 or more gambling offenses.
AB440-SSA1,26,2121 6. The person has been convicted of crimes relating to prostitution.
AB440-SSA1,26,2322 7. The person has been convicted of of crimes relating to loaning money or
23anything of value to persons holding licenses or permits pursuant to ch. 125.
AB440-SSA1,26,2424 8. The person is under the age of 21.
AB440-SSA1,27,2
19. The person has not been a resident of this state continuously for at least 90
2days prior to the application date.
AB440-SSA1,27,103 (cm) Notwithstanding ss. 66.0134 and 947.21, an applicant with 20 or more
4employees may not receive a permit under this section to operate as a marijuana
5distributor or marijuana retailer unless the applicant certifies to the department
6that the applicant has entered into a labor peace agreement, as defined in s. 94.56
7(1) (a), and will abide by the terms of the agreement as a condition of maintaining
8a valid permit under this section. The applicant shall submit to the department a
9copy of the page of the labor peace agreement that contains the signatures of the
10union representative and the applicant.
AB440-SSA1,27,2211 (cn) The department shall use a competitive scoring system to determine which
12applicants are eligible to receive a permit under this section. The department shall
13issue permits to the highest scoring applicants that it determines will best protect
14the environment; provide stable, family-supporting jobs to local residents; ensure
15worker and consumer safety; operate secure facilities; and uphold the laws of the
16jurisdictions in which they operate. The department shall, using criteria established
17by rule, score an applicant for a permit to operate as a marijuana retailer on the
18applicant's ability to articulate a social equity plan related to the operation of a
19marijuana retail establishment. The department may deny a permit to an applicant
20with a low score as determined under this paragraph. The department may request
21that the applicant provide any information or documentation that the department
22deems necessary for purposes of making a determination under this paragraph.
AB440-SSA1,28,523 (d) 1. Before the department issues a new or renewed permit under this section,
24the department shall give notice of the permit application to the governing body of
25the municipality where the permit applicant intends to operate the premises of a

1marijuana producer, marijuana processor, marijuana distributor, marijuana
2retailer, or microbusiness. No later than 30 days after the department submits the
3notice, the governing body of the municipality may file with the department a written
4objection to granting or renewing the permit. At the municipality's request, the
5department may extend the period for filing objections.
AB440-SSA1,28,196 2. A written objection filed under subd. 1. shall provide all the facts on which
7the objection is based. In determining whether to grant or deny a permit for which
8an objection has been filed under this paragraph, the department shall give
9substantial weight to objections from a municipality based on chronic illegal activity
10associated with the premises for which the applicant seeks a permit or the premises
11of any other operation in this state for which the applicant holds or has held a valid
12permit or license, the conduct of the applicant's patrons inside or outside the
13premises of any other operation in this state for which the applicant holds or has held
14a valid permit or license, and local zoning ordinances. In this subdivision, “ chronic
15illegal activity" means a pervasive pattern of activity that threatens the public
16health, safety, and welfare of the municipality, including any crime or ordinance
17violation, and that is documented in crime statistics, police reports, emergency
18medical response data, calls for service, field data, or similar law enforcement agency
19records.
AB440-SSA1,28,2420 (e) After denying a permit, the department shall immediately notify the
21applicant in writing of the denial and the reasons for the denial. After making a
22decision to grant or deny a permit for which a municipality has filed an objection
23under par. (d), the department shall immediately notify the governing body of the
24municipality in writing of its decision and the reasons for the decision.
AB440-SSA1,29,2
1(f) 1. The department's denial of a permit under this section is subject to judicial
2review under ch. 227.
AB440-SSA1,29,43 2. The department's decision to grant a permit under this section regardless of
4an objection filed under par. (d) is subject to judicial review under ch. 227.
AB440-SSA1,29,65 (g) The department shall not issue a permit under this section to any person
6who does not hold a valid certificate under s. 73.03 (50).
AB440-SSA1,29,13 7(2) Each person who applies for a permit under this section shall submit with
8the application a $250 fee. Each person who is granted a permit under this section
9shall annually pay to the department a $2,000 fee for as long as the person holds a
10valid permit under this section. A permit issued under this section is valid for one
11year and may be renewed, except that the department may revoke or suspend a
12permit prior to its expiration. A person is not entitled to a refund of the fees paid
13under this subsection if the person's permit is denied, revoked, or suspended.
AB440-SSA1,29,17 14(3) The department may not issue a permit under this section to operate any
15premises which are within 500 feet of the perimeter of the grounds of any elementary
16or secondary school, playground, recreation facility, child care facility, public park,
17public transit facility, or library.
AB440-SSA1,30,6 18(4) Under this section, a separate permit is required for and issued to each class
19of permittee, and the permit holder may perform only the operations authorized by
20the permit. A permit issued under this section is not transferable from one person
21to another or from one premises to another. A separate permit is required for each
22place in this state where the operations of a marijuana producer, marijuana
23processor, marijuana distributor, marijuana retailer, or microbusiness occur,
24including each retail outlet. No person who has been issued a permit to operate as
25a marijuana retailer, or who has any direct or indirect financial interest in the

1operation of a marijuana retailer, shall be issued a permit to operate as a marijuana
2producer, marijuana processor, or marijuana distributor. A person who has been
3issued a permit to operate as a microbusiness is not required to hold separate permits
4to operate as a marijuana processor, marijuana distributor, or marijuana retailer,
5but shall specify on the person's application for a microbusiness permit the activities
6that the person will be engaged in as a microbusiness.
AB440-SSA1,30,8 7(5) Each person issued a permit under this section shall post the permit in a
8conspicuous place on the premises to which the permit relates.
AB440-SSA1,30,10 9139.973 Regulation. (1) (a) No permittee may employ an individual who is
10under the age of 21 to work in the business to which the permit relates.
AB440-SSA1,30,1311 (b) Subject to ss. 111.321, 111.322, and 111.335, no permittee may employ an
12individual if any of the conditions under s. 139.972 (1) (c) 1. to 7. applies to the
13individual.
AB440-SSA1,30,15 14(2) A retail outlet shall sell no products or services other than usable marijuana
15or paraphernalia intended for the storage or use of usable marijuana.
AB440-SSA1,30,18 16(3) No marijuana retailer may allow a person who is under the age of 21 to enter
17or be on the premises of a retail outlet in violation of s. 961.71 (2m), unless that person
18is a qualifying patient, as defined in s. 73.17 (1) (d).
AB440-SSA1,30,21 19(4) The maximum amount of usable marijuana that a retail outlet may sell to
20an individual consumer in a single transaction may not exceed the permissible
21amount under s. 961.70 (5).
AB440-SSA1,30,24 22(4m) A marijuana retailer may not collect, retain, or distribute personal
23information regarding the retailer's customers except that which is necessary to
24complete a sale of usable marijuana.
AB440-SSA1,31,4
1(5) No marijuana retailer may display any signage in a window, on a door, or
2on the outside of the premises of a retail outlet that is visible to the general public
3from a public right-of-way, other than a single sign that is no larger than 1,600
4square inches identifying the retail outlet by the permittee's business or trade name.
AB440-SSA1,31,6 5(6) No marijuana retailer may display usable marijuana in a manner that is
6visible to the general public from a public right-of-way.
AB440-SSA1,31,8 7(7) No marijuana retailer or employee of a retail outlet may consume, or allow
8to be consumed, any usable marijuana on the premises of the retail outlet.
AB440-SSA1,31,10 9(7m) A marijuana retailer may operate a retail outlet only between the hours
10of 8 a.m. and 8 p.m.
AB440-SSA1,31,14 11(8) Except as provided under sub. (5), no marijuana producer, marijuana
12processor, marijuana distributor, marijuana retailer, or microbusiness may place or
13maintain, or cause to be placed or maintained, an advertisement of usable marijuana
14in any form or through any medium.
AB440-SSA1,31,23 15(9) (a) On a schedule determined by the department, every marijuana
16producer, marijuana processor, or microbusiness shall submit representative
17samples of the marijuana and usable marijuana produced or processed by the
18marijuana producer, marijuana processor, or microbusiness to a testing laboratory
19registered under s. 94.57 for testing marijuana and usable marijuana in order to
20certify that the marijuana and usable marijuana comply with standards prescribed
21by the department by rule, including testing for potency and for mold, fungus,
22pesticides, and other contaminants. The laboratory testing the sample shall destroy
23any part of the sample that remains after the testing.
AB440-SSA1,32,3
1(b) Marijuana producers, marijuana processors, and microbusinesses shall
2submit the results of the testing provided under par. (a) to the department in the
3manner prescribed by the department by rule.
AB440-SSA1,32,84 (c) If a representative sample tested under par. (a) does not meet the standards
5prescribed by the department, the department shall take the necessary action to
6ensure that the entire lot from which the sample was taken is destroyed. The
7department shall promulgate rules to determine lots and lot numbers for purposes
8of this subsection and for the reporting of lots and lot numbers to the department.
AB440-SSA1,32,12 9(10) (a) A marijuana processor or a microbusiness that operates as a marijuana
10processor shall affix a label to all usable marijuana that the marijuana processor or
11microbusiness sells to marijuana distributors. The label may not be designed to
12appeal to persons under the age of 18. The label shall include all of the following:
AB440-SSA1,32,1413 1. The ingredients and the tetrahydrocannabinols concentration in the usable
14marijuana.
AB440-SSA1,32,1515 2. The producer's business or trade name.
AB440-SSA1,32,1616 3. The licensee or registrant number.
AB440-SSA1,32,1717 4. The unique identification number.
AB440-SSA1,32,1818 5. The harvest date.
AB440-SSA1,32,1919 6. The strain name and product identity.
AB440-SSA1,32,2020 7. The net weight.
AB440-SSA1,32,2121 8. The activation time.
AB440-SSA1,32,2322 9. The name of laboratory performing any test, the test batch number, and the
23test analysis dates.
AB440-SSA1,32,2524 10. The logotype for recreational marijuana developed by the department of
25agriculture, trade and consumer protection under s. 100.145.
AB440-SSA1,33,1
111. Warnings about all of the following:
AB440-SSA1,33,32 a. Risks of marijuana use and pregnancy and risks of marijuana use by persons
3under the age of 18.
AB440-SSA1,33,64 b. The prohibitions under ss. 23.33 (4c) (a) 2g. and 3g. and (b) 2n., 30.681 (1)
5(b) 1g. and (bn) 2. and (2) (b) 1g., 343.10 (5) (a) 2., 343.12 (7) (a) 11., 346.63 (1) (b), (2)
6(a) 2., and (2p), and 350.101 (1) (bg) and (cg) and (2) (bg).
AB440-SSA1,33,107 (b) No marijuana processor or microbusiness that operates as a marijuana
8processor may make usable marijuana using marijuana grown outside this state.
9The label on each package of usable marijuana may indicate that the usable
10marijuana is made in this state.
AB440-SSA1,33,12 11(11) (a) No permittee may sell marijuana or usable marijuana that contains
12more than 3 parts tetrahydrocannabinols to one part cannabidiol.
AB440-SSA1,33,1613 (b) No permittee may sell marijuana or usable marijuana that tests positive
14under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the
15contaminants, or level of contaminants, are identified by a testing laboratory to be
16potentially unsafe to the consumer.
AB440-SSA1,33,20 17(12) Immediately after beginning employment with a permittee, every
18employee of a permittee shall receive training, approved by the department, on the
19safe handling of marijuana and usable marijuana and on security and inventory
20accountability procedures.
AB440-SSA1,33,22 21(13) The department shall deposit 60 percent of all moneys received under this
22subchapter into the community reinvestment fund.
AB440-SSA1,34,4 23139.974 Records and reports. (1) Every permittee shall keep accurate and
24complete records of the production and sales of marijuana and usable marijuana in
25this state. The records shall be kept on the premises described in the permit and in

1such manner as to ensure permanency and accessibility for inspection at reasonable
2hours by the department's authorized personnel. The department shall prescribe
3reasonable and uniform methods of keeping records and making reports and shall
4provide the necessary forms to permittees.
AB440-SSA1,34,14 5(2) If the department determines that any permittee's records are not kept in
6the prescribed form or are in such condition that the department requires an unusual
7amount of time to determine from the records the amount of the tax due, the
8department shall give notice to the permittee that the permittee is required to revise
9the permittee's records and keep them in the prescribed form. If the permittee fails
10to comply within 30 days, the permittee shall pay the expenses reasonably
11attributable to a proper examination and tax determination at the rate of $30 a day
12for each auditor used to make the examination and determination. The department
13shall send a bill for such expenses, and the permittee shall pay the amount of such
14bill within 10 days.
AB440-SSA1,34,24 15(3) If any permittee fails to file a report when due, the permittee shall be
16required to pay a late filing fee of $10. A report that is mailed is filed on time if it is
17mailed in a properly addressed envelope with postage prepaid, the envelope is
18officially postmarked, or marked or recorded electronically as provided under section
197502 (f) (2) (c) of the Internal Revenue Code, on the date due, and the report is
20actually received by the department or at the destination that the department
21prescribes within 5 days of the due date. A report that is not mailed is timely if it
22is received on or before the due date by the department or at the destination that the
23department prescribes. For purposes of this subsection, “mailed" includes delivery
24by a delivery service designated under section 7502 (f) of the Internal Revenue Code.
AB440-SSA1,35,5
1(4) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating
2to confidentiality of income, franchise, and gift tax returns, apply to any information
3obtained from any permittee under this subchapter on a tax return, report, schedule,
4exhibit, or other document or from an audit report relating to any of those documents,
5except that the department shall publish production and sales statistics.
AB440-SSA1,35,8 6139.975 Administration and enforcement. (1) The department shall
7administer and enforce this subchapter and promulgate rules necessary to
8administer and enforce this subchapter.
AB440-SSA1,35,10 9(2) The duly authorized employees of the department have all necessary police
10powers to prevent violations of this subchapter.
AB440-SSA1,35,17 11(3) Authorized personnel of the department of justice and the department of
12revenue, and any law enforcement officer, within their respective jurisdictions, may
13at all reasonable hours enter the premises of any permittee and examine the books
14and records to determine whether the tax imposed by this subchapter has been fully
15paid and may enter and inspect any premises where marijuana or usable marijuana
16is produced, processed, made, sold, or stored to determine whether the permittee is
17complying with this subchapter.
AB440-SSA1,35,21 18(4) The department may suspend or revoke the permit of any permittee who
19violates s. 100.30, any provision of this subchapter, or any rules promulgated under
20sub. (1). The department shall revoke the permit of any permittee who violates s.
21100.30 3 or more times within a 5-year period.
AB440-SSA1,36,4 22(5) No suit shall be maintained in any court to restrain or delay the collection
23or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax
24when due and, if paid under protest, may at any time within 90 days from the date
25of payment sue the state to recover the tax paid. If it is finally determined that any

1part of the tax was wrongfully collected, the secretary of administration shall pay the
2amount wrongfully collected. A separate suit need not be filed for each separate
3payment made by any taxpayer, but a recovery may be had in one suit for as many
4payments as may have been made.
AB440-SSA1,36,10 5(6) (a) Any person may be compelled to testify in regard to any violation of this
6subchapter of which the person may have knowledge, even though such testimony
7may tend to incriminate the person, upon being granted immunity from prosecution
8in connection with the testimony, and upon the giving of such testimony, the person
9shall not be prosecuted because of the violation relative to which the person has
10testified.
AB440-SSA1,36,1211 (b) The immunity provided under par. (a) is subject to the restrictions under
12s. 972.085.
AB440-SSA1,36,14 13(7) The provisions on timely filing under s. 71.80 (18) apply to the tax imposed
14under this subchapter.
AB440-SSA1,36,20 15(8) Sections 71.74 (1), (2), (10), (11), and (14), 71.77, 71.91 (1) (a) and (c) and
16(2) to (7), 71.92, and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes
17under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes
18under ch. 71 applies to the collection of the taxes under this subchapter, except that
19the period during which notice of an additional assessment shall be given begins on
20the due date of the report under this subchapter.
AB440-SSA1,36,24 21(9) Any building or place of any kind where marijuana or usable marijuana is
22sold, possessed, stored, or manufactured without a lawful permit or in violation of
23s. 139.972 or 139.973 is declared a public nuisance and may be closed and abated as
24such.
AB440-SSA1,37,3
1(10) At the request of the secretary of revenue, the attorney general may
2represent this state or assist a district attorney in prosecuting any case arising under
3this subchapter.
AB440-SSA1,37,10 4139.976 Theft of tax moneys. All marijuana tax moneys received by a
5permittee for the sale of marijuana or usable marijuana on which the tax under this
6subchapter has become due and has not been paid are trust funds in the permittee's
7possession and are the property of this state. Any permittee who fraudulently
8withholds, appropriates, or otherwise uses marijuana tax moneys that are the
9property of this state is guilty of theft under s. 943.20 (1), whether or not the
10permittee has or claims to have an interest in those moneys.
AB440-SSA1,37,16 11139.977 Seizure and confiscation. (1) All marijuana and usable marijuana
12produced, processed, made, kept, stored, sold, distributed, or transported in violation
13of this subchapter, and all tangible personal property used in connection with the
14marijuana or usable marijuana, is unlawful property and subject to seizure by the
15department or a law enforcement officer. Except as provided in sub. (2), all
16marijuana and usable marijuana seized under this subsection shall be destroyed.
AB440-SSA1,37,22 17(2) If marijuana or usable marijuana on which the tax has not been paid is
18seized as provided under sub. (1), it may be given to law enforcement officers to use
19in criminal investigations or sold to qualified buyers by the department, without
20notice. If the department finds that the marijuana or usable marijuana may
21deteriorate or become unfit for use in criminal investigations or for sale, or that those
22uses would otherwise be impractical, the department may order it destroyed.
AB440-SSA1,38,4 23(3) If marijuana or usable marijuana on which the tax has been paid is seized
24as provided under sub. (1), it shall be returned to the true owner if ownership can be
25ascertained and the owner or the owner's agent is not involved in the violation

1resulting in the seizure. If the ownership cannot be ascertained or if the owner or
2the owner's agent was guilty of the violation that resulted in the seizure of the
3marijuana or usable marijuana, it may be sold or otherwise disposed of as provided
4in sub. (2).
AB440-SSA1,38,23 5(4) If tangible personal property other than marijuana or usable marijuana is
6seized as provided under sub. (1), the department shall advertise the tangible
7personal property for sale by publication of a class 2 notice under ch. 985. If no person
8claiming a lien on, or ownership of, the property has notified the department of the
9person's claim within 10 days after last insertion of the notice, the department shall
10sell the property. If a sale is not practical the department may destroy the property.
11If a person claiming a lien on, or ownership of, the property notifies the department
12within the time prescribed in this subsection, the department may apply to the
13circuit court in the county where the property was seized for an order directing
14disposition of the property or the proceeds from the sale of the property. If the court
15orders the property to be sold, all liens, if any, may be transferred from the property
16to the sale proceeds. Neither the property seized nor the proceeds from the sale shall
17be turned over to any claimant of lien or ownership unless the claimant first
18establishes that the property was not used in connection with any violation under
19this subchapter or that, if so used, it was done without the claimant's knowledge or
20consent and without the claimant's knowledge of facts that should have given the
21claimant reason to believe it would be put to such use. If no claim of lien or ownership
22is established as provided under this subsection the property may be ordered
23destroyed.
AB440-SSA1,39,3 24139.978 Interest and penalties. (1) Any person who makes or signs any
25false or fraudulent report under this subchapter or who attempts to evade the tax

1imposed by s. 139.971, or who aids in or abets the evasion or attempted evasion of
2that tax, may be fined not more than $10,000 or imprisoned for not more than 9
3months or both.
AB440-SSA1,39,6 4(2) Any permittee who fails to keep the records required by s. 139.974 (1) and
5(2) shall be fined not less than $100 nor more than $500 or imprisoned not more than
66 months or both.
AB440-SSA1,39,11 7(3) Any person who refuses to permit the examination or inspection authorized
8under s. 139.975 (3) may be fined not more than $500 or imprisoned not more than
96 months or both. The department shall immediately suspend or revoke the permit
10of any person who refuses to permit the examination or inspection authorized under
11s. 139.975 (3).
AB440-SSA1,39,14 12(4) Any person who violates any of the provisions of this subchapter for which
13no other penalty is prescribed shall be fined not less than $100 nor more than $1,000
14or imprisoned not less than 10 days nor more than 90 days or both.
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