AB224,24,108 (b) A person who is cultivating tetrahydrocannabinols for the medical use of
9tetrahydrocannabinols, as defined in s. 50.60 (4), if the amount does not exceed the
10maximum medicinal amount, as defined in s. 50.60 (3).
AB224,24,1211 (c) A person who is a personal-use permit holder, as defined in s. 961.70 (7), who
12has no more than 12 marijuana plants at one time.
AB224,46 13Section 46. 85.53 (1) (d) of the statutes is amended to read:
AB224,24,1614 85.53 (1) (d) "Operating while intoxicated" means a violation of s. 346.63 (1) or,
15(2m), or (2p) or a local ordinance in conformity therewith or of s. 346.63 (2) or (6),
16940.09 (1) or 940.25.
AB224,47 17Section 47. 139.87 (7) of the statutes is amended to read:
AB224,24,2018 139.87 (7) "Tetrahydrocannabinols" means a substance included in s. 961.14
19(4) (t)
in any form including tetrahydrocannabinols contained in marijuana,
20obtained from marijuana or chemically synthesized
.
AB224,48 21Section 48. Subchapter V (title) of chapter 139 [precedes 139.97] of the
22statutes is created to read:
AB224,24,2323 chapter 139
AB224,24,2424 subchapter v
AB224,24,2525 marijuana tax and regulation
AB224,49
1Section 49. 139.97 of the statutes is created to read:
AB224,25,2 2139.97 Definitions. In this subchapter:
AB224,25,4 3(1) "Department", if used without further qualification, means the department
4of revenue.
AB224,25,7 5(2) "Lot" means a definite quantity of marijuana or usable marijuana identified
6by a lot number, every portion or package of which is consistent with the factors that
7appear in the labeling.
AB224,25,9 8(3) "Lot number" means a number that specifies the person who holds a valid
9license under this subchapter and the harvesting or processing date for each lot.
AB224,25,10 10(4) "Marijuana" has the meaning given in s. 961.70 (3).
AB224,25,13 11(5) "Marijuana processor" means a person who processes marijuana into usable
12marijuana, packages and labels usable marijuana for sale in retail outlets, or sells
13usable marijuana at wholesale to marijuana retailers.
AB224,25,15 14(6) "Marijuana producer" means a person who produces marijuana and sells
15it at wholesale to marijuana processors or other marijuana producers.
AB224,25,17 16(8) "Marijuana retailer" means a person who sells usable marijuana at a retail
17outlet.
AB224,25,19 18(9) "Permittee" means a marijuana producer, marijuana processor, or
19marijuana retailer who is issued a permit under s. 139.972.
AB224,25,21 20(10) "Retail outlet" means a location for the retail sale of usable marijuana or
21marijuana-infused products.
AB224,25,22 22(11) "Sales price" has the meaning given in s. 77.51 (15b).
AB224,25,23 23(12) "Usable marijuana" means dried marijuana flowers.
AB224,50 24Section 50. 139.971 of the statutes is created to read:
AB224,26,3
1139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana
2producer at the rate of 25 percent of the sales price on each wholesale sale in this state
3of marijuana to a marijuana processor or to another marijuana producer.
AB224,26,64 (b) An excise tax is imposed on a marijuana processor at the rate of 25 percent
5of the sales price on each wholesale sale in this state of usable marijuana to a
6marijuana retailer.
AB224,26,87 (c) An excise tax is imposed on a marijuana retailer at the rate of 25 percent
8of the sales price on each retail sale in this state of usable marijuana.
AB224,26,13 9(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
10to the department no later than the 15th day of the month following the month in
11which the person's tax liability is incurred and shall include with the payment a
12return on a form prescribed by the department. The department shall deposit all
13taxes collected under this section into the marijuana fund.
AB224,51 14Section 51. 139.972 of the statutes is created to read:
AB224,26,18 15139.972 Permits required. (1) (a) No person may operate in this state as a
16marijuana producer, marijuana processor, or marijuana retailer without first filing
17an application for and obtaining the proper permit from the department to perform
18such operations.
AB224,26,2119 (b) This section applies to all officers, directors, agents, and stockholders
20holding 5 percent or more of the stock of any corporation applying for a permit under
21this section.
AB224,26,2322 (c) Subject to ss. 111.321, 111.322, and 111.335, no permit under this section
23may be granted to any person to whom any of the following applies:
AB224,26,2524 1. The person has been convicted of a misdemeanor, not involving chs. 340 to
25349, at least 3 times.
AB224,27,1
12. The person has been convicted of a felony, unless pardoned.
AB224,27,32 3. During the preceding 3 years, the person has been committed under s. 51.20
3for being drug dependent.
AB224,27,84 4. The person chronically and habitually uses alcohol beverages or other
5substances to the extent that his or her normal faculties are impaired. A person is
6presumed chronically and habitually to use alcohol beverages or other substances to
7the extent that his or her normal faculties are impaired if, within the preceding 3
8years, any of the following applies:
AB224,27,109 a. The person has been committed for involuntary treatment under s. 51.45
10(13).
AB224,27,1111 b. The person has been convicted of a violation of s. 941.20 (1) (b).
AB224,27,2112 c. In 2 or more cases arising out of separate incidents, a court has found the
13person to have committed a violation of s. 346.63 or a local ordinance in conformity
14with that section; a violation of a law of a federally recognized American Indian tribe
15or band in this state in conformity with s. 346.63; or a violation of the law of another
16jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while
17intoxicated, while under the influence of a controlled substance, a controlled
18substance analog, or a combination thereof, with an excess or specified range of
19alcohol concentration, or while under the influence of any drug to a degree that
20renders the person incapable of safely driving, as those or substantially similar
21terms are used in that jurisdiction's laws.
AB224,27,2322 5. The person has income which comes principally from gambling or has been
23convicted of 2 or more gambling offenses.
AB224,27,2424 6. The person has been guilty of crimes relating to prostitution.
AB224,28,2
17. The person has been guilty of crimes relating to loaning money or anything
2of value to persons holding licenses or permits pursuant to ch. 125.
AB224,28,33 8. The person is under the age of 21.
AB224,28,54 9. The person has not been a resident of this state continuously for at least 90
5days prior to the application date.
AB224,28,136 (d) 1. Before the department issues a new or renewed permit under this section,
7the department shall give notice of the permit application to the governing body of
8the municipality where the the permit applicant intends to operate a retail outlet or
9other premises of a marijuana producer, marijuana processor, or marijuana retailer.
10No later than 30 days after the department submits the notice, the governing body
11of the municipality may file with the department a written objection to granting or
12renewing the permit. At the municipality's request, the department may extend the
13period for filing objections.
AB224,29,214 2. A written objection filed under subd. 1. shall provide all the facts on which
15the objection is based. In determining whether to grant or deny a permit for which
16an objection has been filed under this paragraph, the department shall give
17substantial weight to objections from a municipality based on chronic illegal activity
18associated with the premises for which the applicant seeks a permit, the premises
19of any other operation in this state for which the applicant holds or has held a valid
20permit or license, the conduct of the applicant's patrons inside or outside the
21premises of any other operation in this state for which the applicant holds or has held
22a valid permit or license, and local zoning ordinances. In this subdivision, "chronic
23illegal activity" means a pervasive pattern of activity that threatens the public
24health, safety, and welfare of the municipality, including any crime or ordinance

1violation, and is documented in crime statistics, police reports, emergency medical
2response data, calls for service, field data, or similar law enforcement agency records.
AB224,29,73 (e) After denying a permit, the department shall immediately notify the
4applicant in writing of the denial and the reasons for the denial. After making a
5decision to grant or deny a permit for which a municipality has filed an objection
6under par. (d), the department shall immediately notify the governing body of the
7municipality in writing of its decision and the reasons for the decision.
AB224,29,98 (f) 1. The department's denial of a permit under this section is subject to judicial
9review under ch. 227.
AB224,29,1110 2. The department's decision to grant a permit under this section regardless of
11an objection filed under par. (d) is subject to judicial review under ch. 227.
AB224,29,1312 (g) The department shall not issue a permit under this section to any person
13who does not hold a valid certificate under s. 73.03 (50).
AB224,29,22 14(2) Each person who applies for a permit under this section shall submit with
15the application a $250 fee. Each person who is granted a permit under this section
16shall annually pay to the department a $1,000 fee for as long as the person holds a
17valid permit under this section. A permit issued under this section is valid for one
18year and may be renewed, except that the department may revoke or suspend a
19permit prior to its expiration. A person is not entitled to a refund of the fees paid
20under this subsection if the person's permit is denied, revoked, or suspended. The
21department shall deposit the fees collected under this subsection into the marijuana
22fund.
AB224,30,2 23(3) The department may not issue a permit under this section to operate any
24premises which are within 1,000 feet of the perimeter of the grounds of any

1elementary or secondary school, playground, recreation facility, child care facility,
2public park, public transit facility, or library.
AB224,30,11 3(4) Under this section, a separate permit is required for and issued to each class
4of permittee and the permit holder shall perform only the operations authorized by
5the permit. A permit issued under this section is not transferrable from one person
6to another or from one premises to another. A separate permit is required for each
7place in this state where the operations of a marijuana producer, marijuana
8processor, or marijuana retailer occur, including each retail outlet. No person who
9has been issued a permit to operate as a marijuana retailer, or who has any direct
10or indirect financial interest in the operation of a marijuana retailer, shall be issued
11a permit to operate as a marijuana producer or marijuana processor.
AB224,30,13 12(5) Each person issued a permit under this section shall post the permit in a
13conspicuous place on the premises to which the permit relates.
AB224,52 14Section 52. 139.973 of the statutes is created to read:
AB224,30,16 15139.973 Regulation. (1) No permittee may employ a person who is under the
16age of 21 to work in the business to which the permit relates.
AB224,30,18 17(2) A retail outlet shall sell no products or services other than usable marijuana
18or paraphernalia intended for the storage or use of usable marijuana.
AB224,30,20 19(3) No marijuana retailer may allow a person who is under the age of 21 to enter
20or be on the premises of a retail outlet in violation of s. 961.71 (2m).
AB224,30,23 21(4) The maximum amount of usable marijuana that a retail outlet may sell to
22an individual consumer in a single transaction may not exceed the permissible
23amount under s. 961.70 (5).
AB224,31,2 24(5) No marijuana retailer may display any signage in a window, on a door, or
25on the outside of the premises of a retail outlet that is visible to the general public

1from a public right-of-way, other than a single sign that is no larger than 1,600
2square inches identifying the retail outlet by the permittee's business or trade name.
AB224,31,4 3(6) No marijuana retailer may display usable marijuana in a manner that is
4visible to the general public from a public right-of-way.
AB224,31,6 5(7) No marijuana retailer or employee of a retail outlet may consume, or allow
6to be consumed, any usable marijuana on the premises of the retail outlet.
AB224,31,10 7(8) Except as provided under sub. (5), no marijuana producer, marijuana
8processor, or marijuana retailer may place or maintain, or cause to be placed or
9maintained, an advertisement of usable marijuana in any form or through any
10medium.
AB224,31,19 11(9) (a) On a schedule determined by the department, every marijuana producer
12and marijuana processor shall submit representative samples of the marijuana and
13usable marijuana produced or processed by the marijuana producer or marijuana
14processor to a testing laboratory registered under s. 50.66 for testing marijuana and
15usable marijuana in order to certify that the marijuana and usable marijuana
16comply with standards prescribed by the department by rule, including testing for
17potency and for mold, fungus, pesticides, and other contaminants. The laboratory
18testing the sample shall destroy any part of the sample that remains after the
19testing.
AB224,31,2220 (b) Marijuana producers and marijuana processors shall submit the results of
21the testing provided under par. (a) to the department in the manner prescribed by
22the department by rule.
AB224,32,323 (c) If a representative sample inspected and tested under par. (a) does not meet
24the standards prescribed by the department, the department shall take the
25necessary action to ensure that the entire lot from which the sample was taken is

1destroyed. The department shall promulgate rules to determine lots and lot
2numbers for purposes of this subsection and for the reporting of lots and lot numbers
3to the department.
AB224,32,7 4(10) A marijuana processor shall affix a label to all usable marijuana that the
5marijuana processor sells to marijuana retailers. The label shall specify the
6ingredients and the concentration of tetrahydrocannabinols in the usable
7marijuana.
AB224,32,9 8(11) (a) No permittee may sell marijuana or usable marijuana that contains
9more than 3 parts tetrahydrocannabinols to one part cannabidiol.
AB224,32,1310 (b) No permittee may sell marijuana or usable marijuana that tests positive
11under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the
12contaminants, or level of contaminants, are identified by a testing laboratory to be
13potentially unsafe to the consumer.
AB224,32,17 14(12) Immediately after beginning employment with a marijuana retailer, every
15employee of a marijuana retailer shall receive training, approved by the department,
16on the safe handling of usable marijuana offered for sale and on security and
17inventory accountability procedures related to such sales.
AB224,53 18Section 53. 139.974 of the statutes is created to read:
AB224,32,25 19139.974 Records and reports. (1) Every permittee shall keep accurate and
20complete records of the production and sales of marijuana and usable marijuana in
21this state. The records shall be kept on the premises described in the permit and in
22such manner as to ensure permanency and accessibility for inspection at reasonable
23hours by the department's authorized personnel. The department shall prescribe
24reasonable and uniform methods of keeping records and making reports and shall
25provide the necessary forms to permittees.
AB224,33,10
1(2) If the department determines that any permittee's records are not kept in
2the prescribed form or are in such condition that the department requires an unusual
3amount of time to determine from the records the amount of the tax due, the
4department shall give notice to the permittee that the permittee is required to revise
5the permittee's records and keep them in the prescribed form. If the permittee fails
6to comply within 30 days, the permittee shall pay the expenses reasonably
7attributable to a proper examination and tax determination at the rate of $30 a day
8for each auditor used to make the examination and determination. The department
9shall send a bill for such expenses and the permittee shall pay the amount of such
10bill within 10 days.
AB224,33,20 11(3) If any permittee fails to file a report when due, the permittee shall be
12required to pay a late filing fee of $10. A report that is mailed is filed on time if it is
13mailed in a properly addressed envelope with postage prepaid, the envelope is
14officially postmarked, or marked or recorded electronically as provided under section
157502 (f) (2) (c) of the Internal Revenue Code, on the date due, and the report is
16actually received by the department or at the destination that the department
17prescribes within 5 days of the due date. A report that is not mailed is timely if it
18is received on or before the due date by the department or at the destination that the
19department prescribes. For purposes of this subsection, "mailed" includes delivery
20by a delivery service designated under section 7502 (f) of the Internal Revenue Code.
AB224,33,25 21(4) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating
22to confidentiality of income, franchise, and gift tax returns, apply to any information
23obtained from any permittee under this subchapter on a tax return, report, schedule,
24exhibit, or other document or from an audit report relating to any of those documents,
25except that the department of revenue shall publish production and sales statistics.
AB224,54
1Section 54. 139.975 of the statutes is created to read:
AB224,34,4 2139.975 Administration and enforcement. (1) The department shall
3administer and enforce this subchapter and promulgate rules necessary to
4administer and enforce this subchapter.
AB224,34,6 5(2) The duly authorized employees of the department have all necessary police
6powers to prevent violations of this subchapter.
AB224,34,13 7(3) Authorized personnel of the department of justice and the department of
8revenue, and any law enforcement officer, within their respective jurisdictions, may
9at all reasonable hours enter the premises of any permittee and examine the books
10and records to determine whether the tax imposed by this subchapter has been fully
11paid and may enter and inspect any premises where marijuana or usable marijuana
12is produced, processed, made, sold, or stored to determine whether the permittee is
13complying with this subchapter.
AB224,34,17 14(4) The department may suspend or revoke the permit of any permittee who
15violates s. 100.30, any provision of this subchapter, or any rules promulgated under
16sub. (1). The department shall revoke the permit of any permittee who violates s.
17100.30 3 or more times within a 5-year period.
AB224,34,25 18(5) No suit shall be maintained in any court to restrain or delay the collection
19or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax
20when due and, if paid under protest, may at any time within 90 days from the date
21of payment sue the state to recover the tax paid. If it is finally determined that any
22part of the tax was wrongfully collected, the secretary of administration shall pay the
23amount wrongfully collected out of the marijuana fund. A separate suit need not be
24filed for each separate payment made by any taxpayer, but a recovery may be had
25in one suit for as many payments as may have been made.
AB224,35,6
1(6) (a) Any person may be compelled to testify in regard to any violation of this
2subchapter of which the person may have knowledge, even though such testimony
3may tend to incriminate the person, upon being granted immunity from prosecution
4in connection with the testimony, and upon the giving of such testimony, the person
5shall not be prosecuted because of the violation relative to which the person has
6testified.
AB224,35,87 (b) The immunity provided under par. (a) is subject to the restrictions under
8s. 972.085.
AB224,35,10 9(7) The provisions on timely filing under s. 71.80 (18) apply to the tax imposed
10under this subchapter.
AB224,35,16 11(8) Sections 71.74 (1), (2), (10), (11) and (14), 71.77, 71.91 (1) (a) and (c) and (2)
12to (7), 71.92, and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes
13under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes
14under ch. 71 applies to the collection of the taxes under this subchapter, except that
15the period during which notice of an additional assessment shall be given begins on
16the due date of the report under this subchapter.
AB224,35,20 17(9) Any building or place of any kind where marijuana or usable marijuana is
18sold, possessed, stored, or manufactured without a lawful permit or in violation of
19s. 139.972 or 139.973 is declared a public nuisance and may be closed and abated as
20such.
AB224,35,23 21(10) At the request of the secretary of revenue, the attorney general may
22represent this state or assist a district attorney in prosecuting any case arising under
23this subchapter.
AB224,55 24Section 55. 139.976 of the statutes is created to read:
AB224,36,7
1139.976 Theft of tax moneys. All marijuana tax moneys received by a
2permittee for the sale of marijuana or usable marijuana on which the tax under this
3subchapter has become due and has not been paid are trust funds in the permittee's
4possession and are the property of this state. Any permittee who fraudulently
5withholds, appropriates, or otherwise uses marijuana tax moneys that are the
6property of this state is guilty of theft under s. 943.20 (1), whether or not the
7permittee has or claims to have an interest in those moneys.
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