SB377: Bill Text

SB377,53,5 (b) Marijuana producers, marijuana processors, and microbusinesses shall submit the results of the testing provided under par. (a) to the department in the manner prescribed by the department by rule.

SB377,53,10 (c) If a representative sample tested under par. (a) does not meet the standards prescribed by the department, the department shall take the necessary action to ensure that the entire lot from which the sample was taken is destroyed. The department shall promulgate rules to determine lots and lot numbers for purposes of this subsection and for the reporting of lots and lot numbers to the department.

SB377,53,14 (10) (a) A marijuana processor or a microbusiness that operates as a marijuana processor shall affix a label to all usable marijuana that the marijuana processor or microbusiness sells to marijuana distributors. The label may not be designed to appeal to persons under the age of 18. The label shall include all of the following:

SB377,53,16 1. The ingredients and the tetrahydrocannabinols concentration in the usable marijuana.

SB377,53,17 2. The producer's business or trade name.

SB377,53,18 3. The licensee or registrant number.

SB377,53,19 4. The unique identification number.

SB377,53,20 5. The harvest date.

SB377,53,21 6. The strain name and product identity.

SB377,53,22 7. The net weight.

SB377,53,23 8. The activation time.

SB377,53,25 9. The name of laboratory performing any test, the test batch number, and the test analysis dates.

SB377,54,4 10. The logotype for recreational marijuana developed by the department of agriculture, trade and consumer protection under s. 100.145, or the logotype for medical marijuana developed by the department of health services under s. 146.46, whichever is appropriate.

SB377,54,5 11. Warnings about all of the following:

SB377,54,7 a. Risks of marijuana use and pregnancy and risks of marijuana use by persons under the age of 18.

SB377,54,10 b. The prohibitions under ss. 23.33 (4c) (a) 2g. and 3g. and (b) 2n., 30.681 (1) (b) 1g. and (bn) 2. and (2) (b) 1g., 343.10 (5) (a) 2., 343.12 (7) (a) 11., 346.63 (1) (b), (2) (a) 2., and (2p), and 350.101 (1) (bg) and (cg) and (2) (bg).

SB377,54,14 (b) No marijuana processor or microbusiness that operates as a marijuana processor may make usable marijuana using marijuana grown outside this state. The label on each package of usable marijuana may indicate that the usable marijuana is made in this state.

SB377,54,16 (11) (a) No permittee may sell marijuana or usable marijuana that contains more than 3 parts tetrahydrocannabinols to one part cannabidiol.

SB377,54,20 (b) No permittee may sell marijuana or usable marijuana that tests positive under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the contaminants, or level of contaminants, are identified by a testing laboratory to be potentially unsafe to the consumer.

SB377,54,24 (12) Immediately after beginning employment with a permittee, every employee of a permittee shall receive training, approved by the department, on the safe handling of marijuana and usable marijuana and on security and inventory accountability procedures.

SB377,55,7 139.974 Records and reports. (1) Every permittee shall keep accurate and complete records of the production and sales of marijuana and usable marijuana in this state. The records shall be kept on the premises described in the permit and in such manner as to ensure permanency and accessibility for inspection at reasonable hours by the department's authorized personnel. The department shall prescribe reasonable and uniform methods of keeping records and making reports and shall provide the necessary forms to permittees.

SB377,55,17 (2) If the department determines that any permittee's records are not kept in the prescribed form or are in such condition that the department requires an unusual amount of time to determine from the records the amount of the tax due, the department shall give notice to the permittee that the permittee is required to revise the permittee's records and keep them in the prescribed form. If the permittee fails to comply within 30 days, the permittee shall pay the expenses reasonably attributable to a proper examination and tax determination at the rate of $30 a day for each auditor used to make the examination and determination. The department shall send a bill for such expenses, and the permittee shall pay the amount of such bill within 10 days.

SB377,56,2 (3) If any permittee fails to file a report when due, the permittee shall be required to pay a late filing fee of $10. A report that is mailed is filed on time if it is mailed in a properly addressed envelope with postage prepaid, the envelope is officially postmarked, or marked or recorded electronically as provided under section 7502 (f) (2) (c) of the Internal Revenue Code, on the date due, and the report is actually received by the department or at the destination that the department prescribes within 5 days of the due date. A report that is not mailed is timely if it is received on or before the due date by the department or at the destination that the department prescribes. For purposes of this subsection, “mailed" includes delivery by a delivery service designated under section 7502 (f) of the Internal Revenue Code.

SB377,56,7 (4) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating to confidentiality of income, franchise, and gift tax returns, apply to any information obtained from any permittee under this subchapter on a tax return, report, schedule, exhibit, or other document or from an audit report relating to any of those documents, except that the department shall publish production and sales statistics.

SB377,56,10 139.975 Administration and enforcement. (1) The department shall administer and enforce this subchapter and promulgate rules necessary to administer and enforce this subchapter.

SB377,56,12 (2) The duly authorized employees of the department have all necessary police powers to prevent violations of this subchapter.

SB377,56,19 (3) Authorized personnel of the department of justice and the department of revenue, and any law enforcement officer, within their respective jurisdictions, may at all reasonable hours enter the premises of any permittee and examine the books and records to determine whether the tax imposed by this subchapter has been fully paid and may enter and inspect any premises where marijuana or usable marijuana is produced, processed, made, sold, or stored to determine whether the permittee is complying with this subchapter.

SB377,56,23 (4) The department may suspend or revoke the permit of any permittee who violates s. 100.30, any provision of this subchapter, or any rules promulgated under sub. (1). The department shall revoke the permit of any permittee who violates s. 100.30 3 or more times within a 5-year period.

SB377,57,6 (5) No suit shall be maintained in any court to restrain or delay the collection or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax when due and, if paid under protest, may at any time within 90 days from the date of payment sue the state to recover the tax paid. If it is finally determined that any part of the tax was wrongfully collected, the secretary of administration shall pay the amount wrongfully collected. A separate suit need not be filed for each separate payment made by any taxpayer, but a recovery may be had in one suit for as many payments as may have been made.

SB377,57,12 (6) (a) Any person may be compelled to testify in regard to any violation of this subchapter of which the person may have knowledge, even though such testimony may tend to incriminate the person, upon being granted immunity from prosecution in connection with the testimony, and upon the giving of such testimony, the person shall not be prosecuted because of the violation relative to which the person has testified.

SB377,57,14 (b) The immunity provided under par. (a) is subject to the restrictions under s. 972.085.

SB377,57,16 (7) The provisions on timely filing under s. 71.80 (18) apply to the tax imposed under this subchapter.

SB377,57,22 (8) Sections 71.74 (1), (2), (10), (11), and (14), 71.77, 71.91 (1) (a) and (c) and (2) to (7), 71.92, and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes under ch. 71 applies to the collection of the taxes under this subchapter, except that the period during which notice of an additional assessment shall be given begins on the due date of the report under this subchapter.

SB377,58,2 (9) Any building or place of any kind where marijuana or usable marijuana is sold, possessed, stored, or manufactured without a lawful permit or in violation of s. 139.972 or 139.973 is declared a public nuisance and may be closed and abated as such.

SB377,58,5 (10) At the request of the secretary of revenue, the attorney general may represent this state or assist a district attorney in prosecuting any case arising under this subchapter.

SB377,58,7 (11) The tax imposed under this subchapter does apply to the sale, distribution, or delivery of medical marijuana as described in s. 50.85 (1).

SB377,58,14 139.976 Theft of tax moneys. All marijuana tax moneys received by a permittee for the sale of marijuana or usable marijuana on which the tax under this subchapter has become due and has not been paid are trust funds in the permittee's possession and are the property of this state. Any permittee who fraudulently withholds, appropriates, or otherwise uses marijuana tax moneys that are the property of this state is guilty of theft under s. 943.20 (1), whether or not the permittee has or claims to have an interest in those moneys.

SB377,58,20 139.977 Seizure and confiscation. (1) All marijuana and usable marijuana produced, processed, made, kept, stored, sold, distributed, or transported in violation of this subchapter, and all tangible personal property used in connection with the marijuana or usable marijuana is unlawful property and subject to seizure by the department or a law enforcement officer. Except as provided in sub. (2), all marijuana and usable marijuana seized under this subsection shall be destroyed.

SB377,59,2 (2) If marijuana or usable marijuana on which the tax has not been paid is seized as provided under sub. (1), it may be given to law enforcement officers to use in criminal investigations or sold to qualified buyers by the department, without notice. If the department finds that the marijuana or usable marijuana may deteriorate or become unfit for use in criminal investigations or for sale, or that those uses would otherwise be impractical, the department may order it destroyed.

SB377,59,9 (3) If marijuana or usable marijuana on which the tax has been paid is seized as provided under sub. (1), it shall be returned to the true owner if ownership can be ascertained and the owner or the owner's agent is not involved in the violation resulting in the seizure. If the ownership cannot be ascertained or if the owner or the owner's agent was guilty of the violation that resulted in the seizure of the marijuana or usable marijuana, it may be sold or otherwise disposed of as provided in sub. (2).

SB377,60,3 (4) If tangible personal property other than marijuana or usable marijuana is seized as provided under sub. (1), the department shall advertise the tangible personal property for sale by publication of a class 2 notice under ch. 985. If no person claiming a lien on, or ownership of, the property has notified the department of the person's claim within 10 days after last insertion of the notice, the department shall sell the property. If a sale is not practical the department may destroy the property. If a person claiming a lien on, or ownership of, the property notifies the department within the time prescribed in this subsection, the department may apply to the circuit court in the county where the property was seized for an order directing disposition of the property or the proceeds from the sale of the property. If the court orders the property to be sold, all liens, if any, may be transferred from the property to the sale proceeds. Neither the property seized nor the proceeds from the sale shall be turned over to any claimant of lien or ownership unless the claimant first establishes that the property was not used in connection with any violation under this subchapter or that, if so used, it was done without the claimant's knowledge or consent and without the claimant's knowledge of facts that should have given the claimant reason to believe it would be put to such use. If no claim of lien or ownership is established as provided under this subsection the property may be ordered destroyed.

SB377,60,8 139.978 Interest and penalties. (1) Any person who makes or signs any false or fraudulent report under this subchapter or who attempts to evade the tax imposed by s. 139.971, or who aids in or abets the evasion or attempted evasion of that tax, may be fined not more than $10,000 or imprisoned for not more than 9 months or both.

SB377,60,11 (2) Any permittee who fails to keep the records required by s. 139.974 (1) and (2) shall be fined not less than $100 nor more than $500 or imprisoned not more than 6 months or both.

SB377,60,16 (3) Any person who refuses to permit the examination or inspection authorized under s. 139.975 (3) may be fined not more than $500 or imprisoned not more than 6 months or both. The department shall immediately suspend or revoke the permit of any person who refuses to permit the examination or inspection authorized under s. 139.975 (3).

SB377,60,19 (4) Any person who violates any of the provisions of this subchapter for which no other penalty is prescribed shall be fined not less than $100 nor more than $1,000 or imprisoned not less than 10 days nor more than 90 days or both.

SB377,60,22 (5) Any person who violates any of the rules promulgated in accordance with this subchapter shall be fined not less than $100 nor more than $500 or imprisoned not more than 6 months or both.

SB377,61,2 (6) In addition to the penalties imposed for violating the provisions of this subchapter or any of the department's rules, the department shall revoke the permit of any person convicted of such a violation and not issue another permit to that person for a period of 2 years following the revocation.

SB377,61,6 (7) Unpaid taxes bear interest at the rate of 12 percent per year from the due date of the return until paid or deposited with the department, and all refunded taxes bear interest at the rate of 3 percent per year from the due date of the return to the date on which the refund is certified on the refund rolls.

SB377,61,8 (8) All nondelinquent payments of additional amounts owed shall be applied in the following order: penalties, interest, tax principal.

SB377,61,11 (9) Delinquent marijuana taxes bear interest at the rate of 1.5 percent per month until paid. The taxes imposed by this subchapter shall become delinquent if not paid:

SB377,61,13 (a) In the case of a timely filed return, no return filed or a late return, on or before the due date of the return.

SB377,61,15 (b) In the case of a deficiency determination of taxes, within 2 months after the date of demand.

SB377,61,19 (10) If due to neglect an incorrect return is filed, the entire tax finally determined is subject to a penalty of 25 percent of the tax exclusive of interest or other penalty. A person filing an incorrect return has the burden of proving that the error or errors were due to good cause and not due to neglect.

SB377,61,25 139.979 Personal use. An individual who possesses no more than 6 marijuana plants that have reached the flowering stage at any one time is not subject to the tax imposed under s. 139.971. An individual who possesses more than 6 marijuana plants that have reached the flowering stage at any one time shall apply for the appropriate permit under s. 139.972 and pay the appropriate tax imposed under s. 139.971.

SB377,62,5 139.980 Agreement with tribes. The department may enter into an agreement with a federally recognized American Indian Tribe in this state for the administration and enforcement of this subchapter and to provide refunds of the tax imposed under s. 139.971 on marijuana sold on tribal land by or to enrolled members of the tribe residing on the tribal land.

SB377,93 Section 93 . 146.40 (1) (bo) of the statutes is amended to read:

SB377,62,8 146.40 (1) (bo) “Hospice" means a hospice that is licensed under subch. VI VII of ch. 50.

SB377,94 Section 94 . 146.44 of the statutes is created to read:

SB377,62,11 146.44 Medical marijuana registry program. (1) Definitions. In this section:

SB377,62,13 (a) “Applicant" means a person who is applying for a registry identification card under sub. (2) (a).

SB377,62,15 (b) “Debilitating medical condition or treatment" has the meaning given in s. 50.80 (2).

SB377,62,17 (c) “Medical use of tetrahydrocannabinols" has the meaning given in s. 50.80 (4).

SB377,62,20 (d) “Out-of-state registry identification card" means a document issued by an entity listed in the rule promulgated under sub. (7) (f) that identifies the person as a qualifying patient or primary caregiver, or an equivalent designation.

SB377,62,21 (e) “Primary caregiver" has the meaning given in s. 50.80 (5).

SB377,62,22 (f) “Qualifying patient" has the meaning given in s. 50.80 (6).

SB377,62,24 (g) “Registrant" means a person to whom a registry identification card is issued under sub. (4).

SB377,63,3 (h) “Registry identification card" means a document issued by the department under this section that identifies a person as a qualifying patient or primary caregiver.

SB377,63,4 (i) “Written certification" has the meaning given in s. 50.80 (10).

SB377,63,7 (2) Application. (a) An adult who is claiming to be a qualifying patient may apply for a registry identification card by submitting to the department a signed application form containing or accompanied by all of the following:

SB377,63,8 1. His or her name, address, and date of birth.

SB377,63,9 2. A written certification.

SB377,63,11 3. The name, address, and telephone number of the person's current physician, as listed in the written certification.

SB377,63,13 4. A registration fee in an amount determined by the department, but not to exceed $150.

SB377,63,19 (b) An adult registrant who is a qualifying patient or an applicant may jointly apply with another adult to the department for a registry identification card for the other adult, designating the other adult as a primary caregiver for the registrant or applicant. Both persons who jointly apply for a registry identification card under this paragraph shall sign the application form, which shall contain the name, address, and date of birth of the individual applying to be registered as a primary caregiver.

SB377,63,23 (c) The department shall promulgate rules specifying how a parent, guardian, or person having legal custody of a child may apply for a registry identification card for himself or herself and for the child and the circumstances under which the department may approve or deny the application.

SB377,64,4 (3) Processing the application. The department shall verify the information contained in or accompanying an application submitted under sub. (2) and shall approve or deny the application within 30 days after receiving it. Except as provided in sub. (2) (c), the department may deny an application submitted under sub. (2) only if the required information has not been provided or if false information has been provided.

SB377,64,10 (4) Issuing a registry identification card. The department shall issue to the applicant a registry identification card within 5 days after approving an application under sub. (3). Unless voided under sub. (5) (b) or (c) or revoked under rules issued by the department under sub. (7) (d), a registry identification card shall expire 4 years from the date of issuance. A registry identification card shall contain all of the following:

SB377,64,11 (a) The name, address, and date of birth of all of the following:

SB377,64,12 1. The registrant.

SB377,64,13 2. Each primary caregiver if the registrant is a qualifying patient.

SB377,64,14 3. The qualifying patient if the registrant is a primary caregiver.

SB377,64,15 (b) The date of issuance and expiration date of the registry identification card.

SB377,64,16 (c) A photograph of the registrant.

SB377,64,17 (d) Other information the department may require by rule.

SB377,64,24 (5) Additional information to be provided by registrant. (a) 1. An adult registrant shall notify the department of any change in the registrant's name and address. An adult registrant who is a qualifying patient shall notify the department of any change in his or her physician, of any significant improvement in his or her health as it relates to his or her debilitating medical condition or treatment, and if a registered primary caregiver no longer assists the registrant with the medical use of tetrahydrocannabinols.

SB377,65,4 2. If a qualifying patient is a child, a primary caregiver for the child shall provide the department with any information that the child, if he or she were an adult, would have to provide under subd. 1. within 10 days after the date of the change to which the information relates.

SB377,65,9 (b) If a registrant fails to notify the department within 10 days after any change for which notification is required under par. (a) 1., his or her registry identification card is void. If a registrant fails to comply with par. (a) 2., the registry identification card for the qualifying patient to whom the information under par. (a) 2. relates is void.

SB377,65,13 (c) If a qualifying patient's registry identification card becomes void under par. (b), the registry identification card for each of the qualifying patient's primary caregivers is void. The department shall send written notice of this fact to each such primary caregiver.

SB377,65,14 (6) Records. (a) The department shall maintain a list of all registrants.