SB70-AA3,159,2424 subchapter Iv
SB70-AA3,159,2525 marijuana tax and regulation
SB70-AA3,160,1
1139.97 Definitions. In this subchapter:
SB70-AA3,160,2 2(1) “Department" means the department of revenue.
SB70-AA3,160,5 3(2) “Lot" means a definite quantity of marijuana or usable marijuana identified
4by a lot number, every portion or package of which is consistent with the factors that
5appear in the labeling.
SB70-AA3,160,7 6(3) “Lot number" means a number that specifies the person who holds a valid
7permit under this subchapter and the harvesting or processing date for each lot.
SB70-AA3,160,8 8(4) “Marijuana" has the meaning given in s. 961.70 (2).
SB70-AA3,160,12 9(5) “Marijuana distributor” means a person in this state who purchases or
10receives usable marijuana from a marijuana processor and who sells or otherwise
11transfers the usable marijuana to a marijuana retailer for the purpose of resale to
12consumers.
SB70-AA3,160,16 13(6) “Marijuana processor" means a person in this state who processes
14marijuana into usable marijuana, packages and labels usable marijuana for sale in
15retail outlets, and sells at wholesale or otherwise transfers usable marijuana to
16marijuana distributors.
SB70-AA3,160,18 17(7) “Marijuana producer" means a person in this state who produces marijuana
18and sells it at wholesale or otherwise transfers it to marijuana processors.
SB70-AA3,160,20 19(8) “Marijuana retailer" means a person in this state that sells usable
20marijuana at a retail outlet.
SB70-AA3,160,23 21(9) “Microbusiness” means a marijuana producer that produces marijuana in
22one area that is less than 10,000 square feet and who also operates as any 2 of the
23following:
SB70-AA3,160,2424 (a) A marijuana processor.
SB70-AA3,160,2525 (b) A marijuana distributor.
SB70-AA3,161,1
1(c) A marijuana retailer.
SB70-AA3,161,4 2(10) “Permittee" means a marijuana producer, marijuana processor, marijuana
3distributor, marijuana retailer, or microbusiness that is issued a permit under s.
4139.972.
SB70-AA3,161,5 5(11) “Retail outlet" means a location for the retail sale of usable marijuana.
SB70-AA3,161,6 6(12) “Sales price" has the meaning given in s. 77.51 (15b).
SB70-AA3,161,9 7(13) “Usable marijuana" means marijuana that has been processed for human
8consumption and includes dried marijuana flowers, marijuana-infused products,
9and marijuana edibles.
SB70-AA3,161,14 10139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana
11producer at the rate of 15 percent of the sales price on each wholesale sale or transfer
12in this state of marijuana to a marijuana processor. This paragraph applies to a
13microbusiness that transfers marijuana to a processing operation within the
14microbusiness.
SB70-AA3,161,1815 (b) An excise tax is imposed on a marijuana retailer at the rate of 10 percent
16of the sales price on each retail sale in this state of usable marijuana, except that the
17tax does not apply to sales of usable marijuana to an individual who holds a valid tax
18exemption certificate issued under s. 73.17 (4).
SB70-AA3,161,22 19(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
20to the department no later than the 15th day of the month following the month in
21which the person's tax liability is incurred and shall include with the payment a
22return on a form prescribed by the department.
SB70-AA3,162,2 23(3) For purposes of this section, a marijuana producer may not sell marijuana
24directly to a marijuana distributor or marijuana retailer, and a marijuana retailer
25may purchase usable marijuana for resale only from a marijuana distributor. This

1subsection does not apply to a microbusiness that transfers marijuana or usable
2marijuana to another operation with the microbusiness.
SB70-AA3,162,8 3139.972 Permits required. (1) (a) No person may operate in this state as a
4marijuana producer, marijuana processor, marijuana distributor, marijuana
5retailer, or microbusiness without first filing an application for and obtaining the
6proper permit from the department to perform such operations. In addition, no
7person may operate in this state as a marijuana producer or marijuana processor
8without first filing an application for and obtaining the proper permit under s. 94.56.
SB70-AA3,162,119 (b) This section applies to all officers, directors, agents, and stockholders
10holding 5 percent or more of the stock of any corporation applying for a permit under
11this section.
SB70-AA3,162,1312 (c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may
13not be granted to any person to whom any of the following applies:
SB70-AA3,162,1514 1. The person has been convicted of a violent misdemeanor, as defined in s.
15941.29 (1g) (b), at least 3 times.
SB70-AA3,162,1716 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g)
17(a), unless pardoned.
SB70-AA3,162,1918 3. During the preceding 3 years, the person has been committed under s. 51.20
19for being drug dependent.
SB70-AA3,162,2420 4. The person chronically and habitually uses alcohol beverages or other
21substances to the extent that his or her normal faculties are impaired. A person is
22presumed to chronically and habitually use alcohol beverages or other substances to
23the extent that his or her normal faculties are impaired if, within the preceding 3
24years, any of the following applies:
SB70-AA3,163,2
1a. The person has been committed for involuntary treatment under s. 51.45
2(13).
SB70-AA3,163,33 b. The person has been convicted of a violation of s. 941.20 (1) (b).
SB70-AA3,163,134 c. In 2 or more cases arising out of separate incidents, a court has found the
5person to have committed a violation of s. 346.63 or a local ordinance in conformity
6with that section; a violation of a law of a federally recognized American Indian tribe
7or band in this state in conformity with s. 346.63; or a violation of the law of another
8jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while
9intoxicated, while under the influence of a controlled substance, a controlled
10substance analog, or a combination thereof, with an excess or specified range of
11alcohol concentration, or while under the influence of any drug to a degree that
12renders the person incapable of safely driving, as those or substantially similar
13terms are used in that jurisdiction's laws.
SB70-AA3,163,1514 5. The person has income that comes principally from gambling or has been
15convicted of 2 or more gambling offenses.
SB70-AA3,163,1616 6. The person has been convicted of crimes relating to prostitution.
SB70-AA3,163,1817 7. The person has been convicted of of crimes relating to loaning money or
18anything of value to persons holding licenses or permits pursuant to ch. 125.
SB70-AA3,163,1919 8. The person is under the age of 21.
SB70-AA3,163,2120 9. The person has not been a resident of this state continuously for at least 90
21days prior to the application date.
SB70-AA3,164,422 (cm) An applicant with 20 or more employees may not receive a permit under
23this section to operate as a marijuana distributor or marijuana retailer unless the
24applicant certifies to the department that the applicant has entered into a labor
25peace agreement, as defined in s. 94.56 (1) (a), and will abide by the terms of the

1agreement as a condition of maintaining a valid permit under this section. The
2applicant shall submit to the department a copy of the page of the labor peace
3agreement that contains the signatures of the labor organization representative and
4the applicant.
SB70-AA3,164,165 (cn) The department shall use a competitive scoring system to determine which
6applicants are eligible to receive a permit under this section. The department shall
7issue permits to the highest scoring applicants that it determines will best protect
8the environment; provide stable, family-supporting jobs to local residents; ensure
9worker and consumer safety; operate secure facilities; and uphold the laws of the
10jurisdictions in which they operate. The department shall, using criteria established
11by rule, score an applicant for a permit to operate as a marijuana retailer on the
12applicant's ability to articulate a social equity plan related to the operation of a
13marijuana retail establishment. The department may deny a permit to an applicant
14with a low score as determined under this paragraph. The department may request
15that the applicant provide any information or documentation that the department
16deems necessary for purposes of making a determination under this paragraph.
SB70-AA3,164,2417 (d) 1. Before the department issues a new or renewed permit under this section,
18the department shall give notice of the permit application to the governing body of
19the municipality where the permit applicant intends to operate the premises of a
20marijuana producer, marijuana processor, marijuana distributor, marijuana
21retailer, or microbusiness. No later than 30 days after the department submits the
22notice, the governing body of the municipality may file with the department a written
23objection to granting or renewing the permit. At the municipality's request, the
24department may extend the period for filing objections.
SB70-AA3,165,14
12. A written objection filed under subd. 1. shall provide all the facts on which
2the objection is based. In determining whether to grant or deny a permit for which
3an objection has been filed under this paragraph, the department shall give
4substantial weight to objections from a municipality based on chronic illegal activity
5associated with the premises for which the applicant seeks a permit or the premises
6of any other operation in this state for which the applicant holds or has held a valid
7permit or license, the conduct of the applicant's patrons inside or outside the
8premises of any other operation in this state for which the applicant holds or has held
9a valid permit or license, and local zoning ordinances. In this subdivision, “ chronic
10illegal activity" means a pervasive pattern of activity that threatens the public
11health, safety, and welfare of the municipality, including any crime or ordinance
12violation, and that is documented in crime statistics, police reports, emergency
13medical response data, calls for service, field data, or similar law enforcement agency
14records.
SB70-AA3,165,1915 (e) After denying a permit, the department shall immediately notify the
16applicant in writing of the denial and the reasons for the denial. After making a
17decision to grant or deny a permit for which a municipality has filed an objection
18under par. (d), the department shall immediately notify the governing body of the
19municipality in writing of its decision and the reasons for the decision.
SB70-AA3,165,2120 (f) 1. The department's denial of a permit under this section is subject to judicial
21review under ch. 227.
SB70-AA3,165,2322 2. The department's decision to grant a permit under this section regardless of
23an objection filed under par. (d) is subject to judicial review under ch. 227.
SB70-AA3,165,2524 (g) The department shall not issue a permit under this section to any person
25who does not hold a valid certificate under s. 73.03 (50).
SB70-AA3,166,7
1(2) Each person who applies for a permit under this section shall submit with
2the application a $250 fee. Each person who is granted a permit under this section
3shall annually pay to the department a $2,000 fee for as long as the person holds a
4valid permit under this section. A permit issued under this section is valid for one
5year and may be renewed, except that the department may revoke or suspend a
6permit prior to its expiration. A person is not entitled to a refund of the fees paid
7under this subsection if the person's permit is denied, revoked, or suspended.
SB70-AA3,166,11 8(3) The department may not issue a permit under this section to operate any
9premises which are within 500 feet of the perimeter of the grounds of any elementary
10or secondary school, playground, recreation facility, child care facility, public park,
11public transit facility, or library.
SB70-AA3,166,25 12(4) Under this section, a separate permit is required for and issued to each class
13of permittee, and the permit holder may perform only the operations authorized by
14the permit. A permit issued under this section is not transferable from one person
15to another or from one premises to another. A separate permit is required for each
16place in this state where the operations of a marijuana producer, marijuana
17processor, marijuana distributor, marijuana retailer, or microbusiness occur,
18including each retail outlet. No person who has been issued a permit to operate as
19a marijuana retailer, or who has any direct or indirect financial interest in the
20operation of a marijuana retailer, shall be issued a permit to operate as a marijuana
21producer, marijuana processor, or marijuana distributor. A person who has been
22issued a permit to operate as a microbusiness is not required to hold separate permits
23to operate as a marijuana processor, marijuana distributor, or marijuana retailer,
24but shall specify on the person's application for a microbusiness permit the activities
25that the person will be engaged in as a microbusiness.
SB70-AA3,167,2
1(5) Each person issued a permit under this section shall post the permit in a
2conspicuous place on the premises to which the permit relates.
SB70-AA3,167,4 3139.973 Regulation. (1) (a) No permittee may employ an individual who is
4under the age of 21 to work in the business to which the permit relates.
SB70-AA3,167,75 (b) Subject to ss. 111.321, 111.322, and 111.335, no permittee may employ an
6individual if any of the conditions under s. 139.972 (1) (c) 1. to 7. applies to the
7individual.
SB70-AA3,167,9 8(2) A retail outlet shall sell no products or services other than usable marijuana
9or paraphernalia intended for the storage or use of usable marijuana.
SB70-AA3,167,12 10(3) No marijuana retailer may allow a person who is under the age of 21 to enter
11or be on the premises of a retail outlet in violation of s. 961.71 (2m), unless that person
12is a qualifying patient, as defined in s. 73.17 (1) (d).
SB70-AA3,167,15 13(4) The maximum amount of usable marijuana that a retail outlet may sell to
14an individual consumer in a single transaction may not exceed a permissible amount,
15as defined in s. 961.70 (3).
SB70-AA3,167,18 16(4m) A marijuana retailer may not collect, retain, or distribute personal
17information regarding the retailer's customers except that which is necessary to
18complete a sale of usable marijuana.
SB70-AA3,167,22 19(5) No marijuana retailer may display any signage in a window, on a door, or
20on the outside of the premises of a retail outlet that is visible to the general public
21from a public right-of-way, other than a single sign that is no larger than 1,600
22square inches identifying the retail outlet by the permittee's business or trade name.
SB70-AA3,167,24 23(6) No marijuana retailer may display usable marijuana in a manner that is
24visible to the general public from a public right-of-way.
SB70-AA3,168,2
1(7) No marijuana retailer or employee of a retail outlet may consume, or allow
2to be consumed, any usable marijuana on the premises of the retail outlet.
SB70-AA3,168,4 3(7m) A marijuana retailer may operate a retail outlet only between the hours
4of 8 a.m. and 8 p.m.
SB70-AA3,168,8 5(8) Except as provided under sub. (5), no marijuana producer, marijuana
6processor, marijuana distributor, marijuana retailer, or microbusiness may place or
7maintain, or cause to be placed or maintained, an advertisement of usable marijuana
8in any form or through any medium.
SB70-AA3,168,17 9(9) (a) On a schedule determined by the department, every marijuana
10producer, marijuana processor, or microbusiness shall submit representative
11samples of the marijuana and usable marijuana produced or processed by the
12marijuana producer, marijuana processor, or microbusiness to a testing laboratory
13registered under s. 94.57 for testing marijuana and usable marijuana in order to
14certify that the marijuana and usable marijuana comply with standards prescribed
15by the department by rule, including testing for potency and for mold, fungus,
16pesticides, and other contaminants. The laboratory testing the sample shall destroy
17any part of the sample that remains after the testing.
SB70-AA3,168,2018 (b) Marijuana producers, marijuana processors, and microbusinesses shall
19submit the results of the testing provided under par. (a) to the department in the
20manner prescribed by the department by rule.
SB70-AA3,168,2521 (c) If a representative sample tested under par. (a) does not meet the standards
22prescribed by the department, the department shall take the necessary action to
23ensure that the entire lot from which the sample was taken is destroyed. The
24department shall promulgate rules to determine lots and lot numbers for purposes
25of this subsection and for the reporting of lots and lot numbers to the department.
SB70-AA3,169,4
1(10) (a) A marijuana processor or a microbusiness that operates as a marijuana
2processor shall affix a label to all usable marijuana that the marijuana processor or
3microbusiness sells to marijuana distributors. The label may not be designed to
4appeal to persons under the age of 18. The label shall include all of the following:
SB70-AA3,169,65 1. The ingredients and the tetrahydrocannabinols concentration in the usable
6marijuana.
SB70-AA3,169,77 2. The producer's business or trade name.
SB70-AA3,169,88 3. The producer's permit number.
SB70-AA3,169,99 4. The harvest batch number of the marijuana.
SB70-AA3,169,1010 5. The harvest date.
SB70-AA3,169,1111 6. The strain name and product identity.
SB70-AA3,169,1212 7. The net weight.
SB70-AA3,169,1313 8. The activation time.
SB70-AA3,169,1514 9. The name of laboratory performing any test, the test batch number, and the
15test analysis dates.
SB70-AA3,169,1716 10. The logotype for recreational marijuana developed by the department of
17agriculture, trade and consumer protection under s. 100.145.
SB70-AA3,169,1918 11. Warnings about the risks of marijuana use and pregnancy and risks of
19marijuana use by persons under the age of 18.
SB70-AA3,169,2320 (b) No marijuana processor or microbusiness that operates as a marijuana
21processor may make usable marijuana using marijuana grown outside this state.
22The label on each package of usable marijuana may indicate that the usable
23marijuana is made in this state.
SB70-AA3,169,25 24(11) (a) No permittee may sell marijuana or usable marijuana that contains
25more than 3 parts tetrahydrocannabinols to one part cannabidiol.
SB70-AA3,170,4
1(b) No permittee may sell marijuana or usable marijuana that tests positive
2under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the
3contaminants, or level of contaminants, are identified by a testing laboratory to be
4potentially unsafe to the consumer.
SB70-AA3,170,8 5(12) Immediately after beginning employment with a permittee, every
6employee of a permittee shall receive training, approved by the department, on the
7safe handling of marijuana and usable marijuana and on security and inventory
8accountability procedures.
SB70-AA3,170,10 9(13) The department shall deposit all moneys received under this subchapter
10into the community reinvestment fund.
SB70-AA3,170,17 11139.974 Records and reports. (1) Every permittee shall keep accurate and
12complete records of the production and sales of marijuana and usable marijuana in
13this state. The records shall be kept on the premises described in the permit and in
14such manner as to ensure permanency and accessibility for inspection at reasonable
15hours by the department's authorized personnel. The department shall prescribe
16reasonable and uniform methods of keeping records and making reports and shall
17provide the necessary forms to permittees.
SB70-AA3,171,2 18(2) If the department determines that any permittee's records are not kept in
19the prescribed form or are in such condition that the department requires an unusual
20amount of time to determine from the records the amount of the tax due, the
21department shall give notice to the permittee that the permittee is required to revise
22the permittee's records and keep them in the prescribed form. If the permittee fails
23to comply within 30 days, the permittee shall pay the expenses reasonably
24attributable to a proper examination and tax determination at the rate of $30 a day
25for each auditor used to make the examination and determination. The department

1shall send a bill for such expenses, and the permittee shall pay the amount of such
2bill within 10 days.
SB70-AA3,171,12 3(3) If any permittee fails to file a report when due, the permittee shall be
4required to pay a late filing fee of $10. A report that is mailed is filed on time if it is
5mailed in a properly addressed envelope with postage prepaid, the envelope is
6officially postmarked, or marked or recorded electronically as provided under section
77502 (f) (2) (c) of the Internal Revenue Code, on the date due, and the report is
8actually received by the department or at the destination that the department
9prescribes within 5 days of the due date. A report that is not mailed is timely if it
10is received on or before the due date by the department or at the destination that the
11department prescribes. For purposes of this subsection, “mailed" includes delivery
12by a delivery service designated under section 7502 (f) of the Internal Revenue Code.
SB70-AA3,171,17 13(4) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating
14to confidentiality of income, franchise, and gift tax returns, apply to any information
15obtained from any permittee under this subchapter on a tax return, report, schedule,
16exhibit, or other document or from an audit report relating to any of those documents,
17except that the department shall publish production and sales statistics.
SB70-AA3,171,20 18139.975 Administration and enforcement. (1) The department shall
19administer and enforce this subchapter and promulgate rules necessary to
20administer and enforce this subchapter.
SB70-AA3,171,22 21(2) The duly authorized employees of the department have all necessary police
22powers to prevent violations of this subchapter.
SB70-AA3,172,4 23(3) Authorized personnel of the department of justice and the department of
24revenue, and any law enforcement officer, within their respective jurisdictions, may
25at all reasonable hours enter the premises of any permittee and examine the books

1and records to determine whether the tax imposed by this subchapter has been fully
2paid and may enter and inspect any premises where marijuana or usable marijuana
3is produced, processed, made, sold, or stored to determine whether the permittee is
4complying with this subchapter.
SB70-AA3,172,8 5(4) The department may suspend or revoke the permit of any permittee who
6violates s. 100.30, any provision of this subchapter, or any rules promulgated under
7sub. (1). The department shall revoke the permit of any permittee who violates s.
8100.30 3 or more times within a 5-year period.
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