Because this bill may increase or decrease, directly or indirectly, the cost of the
development, construction, financing, purchasing, sale, ownership, or availability of
housing in this state, the Department of Administration, as required by law, will
prepare a report to be printed as an appendix to this bill.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report.

For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1040,1 1Section 1. 15.01 (6) of the statutes, as affected by 2023 Wisconsin Act 20, is
2amended to read:
AB1040,11,153 15.01 (6) “Division," “bureau," “section," and “unit" means the subunits of a
4department or an independent agency, whether specifically created by law or created
5by the head of the department or the independent agency for the more economic and
6efficient administration and operation of the programs assigned to the department
7or independent agency. The office of credit unions in the department of financial
8institutions, the office of the inspector general in the department of children and
9families, the office of the inspector general in the department of health services, the
10office of medical cannabis regulation in the department of health services,
and the
11office of children's mental health in the department of health services have the
12meaning of “division" under this subsection. The office of the long-term care
13ombudsman under the board on aging and long-term care and the office of
14educational accountability and the office of literacy in the department of public
15instruction have the meaning of “bureau" under this subsection.
AB1040,2 16Section 2. 15.194 (2) of the statutes is created to read:
AB1040,12,217 15.194 (2) Office of medical cannabis regulation. There is created an office
18of medical cannabis regulation in the department of health services. The director of
19the office shall be appointed by the governor, and with the advice and consent of the
20senate appointed, to serve at the pleasure of the governor. If the position of director
21of the office remains vacant for a period of at least 90 days and the governor has not

1filled the vacancy, then the director of the office shall be appointed by a majority of
2the members of the joint committee on legislative organization.
AB1040,3 3Section 3 . 48.024 of the statutes is created to read:
AB1040,12,4 448.024 Medical cannabis. (1) In this section:
AB1040,12,55 (a) “Cannabis” has the meaning given for “marijuana” in s. 961.01 (14).
AB1040,12,66 (b) “Medical cannabis product” has the meaning given in s. 94.57 (1) (f).
AB1040,12,11 7(2) A court may not consider the lawful use or possession of medical cannabis
8products under ch. 94 or 259 in determining custody or placement of a child under
9this chapter, except in cases in which a child has access to the medical cannabis
10products. A court may consider the unlawful use or possession of cannabis in
11determining custody or placement of a child under this chapter.
AB1040,4 12Section 4 . 59.54 (25) (a) (intro.) of the statutes is amended to read:
AB1040,12,2113 59.54 (25) (a) (intro.) The board may enact and enforce an ordinance to prohibit
14the any possession of marijuana, as defined in s. 961.01 (14), subject to the exceptions
15in s. 961.41 (3g) (intro.),
that is unlawful under state law and provide a forfeiture for
16a violation of the ordinance; except that if a complaint is issued regarding an
17allegation of unlawful possession of more than 25 grams of marijuana, or unlawful
18possession of any amount of marijuana following a conviction in this state for
19possession of marijuana, the subject of the complaint may not be prosecuted under
20this subsection for the same action that is the subject of the complaint unless all of
21the following occur:
AB1040,5 22Section 5 . 66.0107 (1) (bm) of the statutes is amended to read:
AB1040,13,623 66.0107 (1) (bm) Enact and enforce an ordinance to prohibit the any possession
24of marijuana, as defined in s. 961.01 (14), subject to the exceptions in s. 961.41 (3g)
25(intro.),
that is unlawful under state law and provide a forfeiture for a violation of

1the ordinance; except that if a complaint is issued regarding an allegation of unlawful
2possession of more than 25 grams of marijuana, or unlawful possession of any
3amount of marijuana following a conviction in this state for possession of marijuana,
4the subject of the complaint may not be prosecuted under this paragraph for the same
5action that is the subject of the complaint unless the charges are dismissed or the
6district attorney declines to prosecute the case.
AB1040,6 7Section 6. 66.0125 (1) (c) of the statutes is created to read:
AB1040,13,98 66.0125 (1) (c) “Medical cannabis product” has the meaning given in s. 94.57
9(1) (f).
AB1040,7 10Section 7 . 66.0125 (3) (a) of the statutes is amended to read:
AB1040,13,1911 66.0125 (3) (a) The purpose of the commission is to study, analyze, and
12recommend solutions for the major social, economic, and cultural problems that
13affect people residing or working within the local governmental unit, including
14problems of the family, youth, education, the aging, juvenile delinquency, health and
15zoning standards, discrimination in employment and public accommodations and
16facilities on the basis of sex, class, race, religion, sexual orientation, or ethnic or
17minority status and discrimination in housing on the basis of sex, class, race, use of
18medical cannabis products,
religion, sexual orientation, ethnic or minority status, or
19status as a victim of domestic abuse, sexual assault, or stalking.
AB1040,8 20Section 8 . 66.0125 (3) (c) 1. b. of the statutes is amended to read:
AB1040,14,221 66.0125 (3) (c) 1. b. To ensure to all residents of a local governmental unit,
22regardless of sex, race, sexual orientation, or color, the right to enjoy equal
23employment opportunities and to ensure to those residents, regardless of sex, race,
24use of medical cannabis products, sexual orientation, color, or status as a victim of

1domestic abuse, sexual assault, or stalking, the right to possess equal housing
2opportunities.
AB1040,9 3Section 9. 66.0408 (4) of the statutes is created to read:
AB1040,14,64 66.0408 (4) Cannabis-related business. (a) No political subdivision may
5regulate a medical cannabis grower, processor, or laboratory licensed under s. 94.57
6or a medical cannabis dispensary operating pursuant to s. 259.10.
AB1040,14,87 (b) No political subdivision may regulate the lawful recommendation or
8delivery of medical cannabis products, as defined in s. 94.57 (1) (f).
AB1040,14,119 (c) A political subdivision may not restrict, in a zoning ordinance under s. 59.69,
1060.61, or 62.23, the location or operation of medical cannabis growing, processing,
11testing, or dispensing.
AB1040,10 12Section 10. 66.0418 (title) of the statutes is repealed and recreated to read:
AB1040,14,13 1366.0418 (title) Local food and drug regulation.
AB1040,11 14Section 11. 66.0418 (3) of the statutes is created to read:
AB1040,14,1615 66.0418 (3) No political subdivision may regulate the lawful use or possession
16of cannabis or medical cannabis products under s. 94.57 or ch. 259.
AB1040,12 17Section 12 . 66.1011 (1) of the statutes is amended to read:
AB1040,15,518 66.1011 (1) Declaration of policy. The right of all persons to have equal
19opportunities for housing regardless of their sex, race, color, disability, as defined in
20s. 106.50 (1m) (g), sexual orientation, as defined in s. 111.32 (13m), religion, national
21origin, use of medical cannabis products, as defined in s. 94.57 (1) (f), marital status,
22family status, as defined in s. 106.50 (1m) (k), status as a victim of domestic abuse,
23sexual assault, or stalking, as defined in s. 106.50 (1m) (u), lawful source of income,
24age, or ancestry is a matter both of statewide concern under ss. 101.132 and 106.50
25and also of local interest under this section and s. 66.0125. The enactment of ss.

1101.132 and 106.50 by the legislature does not preempt the subject matter of equal
2opportunities in housing from consideration by political subdivisions, and does not
3exempt political subdivisions from their duty, nor deprive them of their right, to enact
4ordinances that prohibit discrimination in any type of housing solely on the basis of
5an individual being a member of a protected class.
AB1040,13 6Section 13 . 66.1201 (2m) of the statutes is amended to read:
AB1040,15,127 66.1201 (2m) Discrimination. Persons otherwise entitled to any right, benefit,
8facility, or privilege under ss. 66.1201 to 66.1211 may not be denied the right, benefit,
9facility, or privilege in any manner for any purpose nor be discriminated against
10because of sex, race, color, creed, sexual orientation, status as a victim of domestic
11abuse, sexual assault, or stalking, as defined in s. 106.50 (1m) (u), or national origin,
12or use of medical cannabis products, as defined in s. 94.57 (1) (f)
.
AB1040,14 13Section 14 . 66.1213 (3) of the statutes is amended to read:
AB1040,15,1914 66.1213 (3) Discrimination. Persons otherwise entitled to any right, benefit,
15facility, or privilege under this section may not be denied the right, benefit, facility,
16or privilege in any manner for any purpose nor be discriminated against because of
17sex, race, color, creed, sexual orientation, status as a victim of domestic abuse, sexual
18assault, or stalking, as defined in s. 106.50 (1m) (u), or national origin, or use of
19medical cannabis products, as defined in s. 94.57 (1) (f)
.
AB1040,15 20Section 15 . 66.1301 (2m) of the statutes is amended to read:
AB1040,16,221 66.1301 (2m) Discrimination. Persons entitled to any right, benefit, facility,
22or privilege under ss. 66.1301 to 66.1329 may not be denied the right, benefit, facility,
23or privilege in any manner for any purpose nor be discriminated against because of
24sex, race, color, creed, sexual orientation, status as a victim of domestic abuse, sexual

1assault, or stalking, as defined in s. 106.50 (1m) (u), or national origin, or use of
2medical cannabis products, as defined in s. 94.57 (1) (f)
.
AB1040,16 3Section 16 . 66.1331 (2m) of the statutes is amended to read:
AB1040,16,94 66.1331 (2m) Discrimination. Persons otherwise entitled to any right, benefit,
5facility, or privilege under this section may not be denied the right, benefit, facility,
6or privilege in any manner for any purpose nor be discriminated against because of
7sex, race, color, creed, sexual orientation, status as a victim of domestic abuse, sexual
8assault, or stalking, as defined in s. 106.50 (1m) (u), or national origin, or use of
9medical cannabis products, as defined in s. 94.57 (1) (f)
.
AB1040,17 10Section 17 . 66.1333 (3) (e) 2. of the statutes is amended to read:
AB1040,16,1611 66.1333 (3) (e) 2. Persons otherwise entitled to any right, benefit, facility, or
12privilege under this section may not be denied the right, benefit, facility, or privilege
13in any manner for any purpose nor be discriminated against because of sex, race,
14color, creed, sexual orientation, status as a victim of domestic abuse, sexual assault,
15or stalking, as defined in s. 106.50 (1m) (u), or national origin, or use of medical
16cannabis products, as defined in s. 94.57 (1) (f)
.
AB1040,18 17Section 18. 77.54 (71) of the statutes is created to read:
AB1040,16,2018 77.54 (71) The sales price from the sale of a medical cannabis product, as
19defined in s. 94.57 (1) (f), sold by a dispensary, as defined in s. 259.01 (2), to a person
20who holds a valid registry identification card, as provided under s. 259.04.
AB1040,19 21Section 19. 94.57 of the statutes is created to read:
AB1040,16,23 2294.57 Cannabis growers, medical cannabis processors, and medical
23cannabis testing laboratories.
(1) Definitions. In this section:
AB1040,16,2424 (a) “Cannabis" has the meaning given for “marijuana” in s. 961.01 (14).
AB1040,16,2525 (am) “Dispensary” has the meaning given in s. 259.01 (2).
AB1040,17,2
1(b) “Grower” means a person that plants, grows, cultivates, or harvests
2cannabis.
AB1040,17,53 (c) “Laboratory” means a person that obtains medical cannabis products or
4samples of such products from a licensed processor and conducts testing on those
5products or samples.
AB1040,17,76 (d) “Licensee” means a grower, processor, or laboratory that holds a valid
7license from the department under this section.
AB1040,17,158 (f) “Medical cannabis product” means a product that contains cannabinoids
9that have been extracted from cannabis plant material, that is intended for use by
10a patient, as defined in s. 259.01 (9), to alleviate the symptoms of a medical condition
11or to alleviate the symptoms of treatment for a medical condition, and that is
12processed for human consumption in the form of concentrates, oils, tinctures, edibles,
13pills, topical forms, gels, creams, vapors, patches, liquids, or forms administered by
14a nebulizer. “Medical cannabis product” does not include cannabis in a form that can
15be smoked.
AB1040,17,1816 (g) “Processor” means a person that obtains cannabis from a licensed grower,
17processes the cannabis into medical cannabis products, and packages and labels the
18medical cannabis products.
AB1040,17,2419 (h) “Resident” means an individual who maintains his or her place of
20permanent abode in this state. Domiciliary intent is required to establish that a
21person is maintaining his or her place of permanent abode in this state. Mere
22ownership of property is not sufficient to establish domiciliary intent. Evidence of
23domiciliary intent includes the location where the individual votes, pays personal
24income taxes, or obtains a driver's license.
AB1040,18,2
1(2) Department duties. (a) The department shall oversee and regulate the
2growing of cannabis and the processing and testing of medical cannabis products.
AB1040,18,53 (b) The department shall promulgate rules establishing safety and security
4requirements for the premises of growers, processors, and laboratories that handle
5cannabis or medical cannabis products.
AB1040,18,96 (c) Annually, no later than October 15, the department shall submit a report
7to the chief clerk of each house of the legislature for distribution to the legislature
8under s. 13.172 (2) on the status of medical cannabis regulation under this section.
9The report shall include information on all of the following:
AB1040,18,1010 1. The number of current licensees.
AB1040,18,1111 2. The location by county of each licensee.
AB1040,18,1312 3. The number of applications for licenses under this section received over the
13previous year and the number of applications approved.
AB1040,18,1614 4. The expenses and revenues of the program over the previous year, all funds
15held in reserve for the program, and an estimation of the expenses and revenues of
16the program over the following year.
AB1040,18,20 17(3) License required. No person may operate in this state as a grower,
18processor, or laboratory without a license issued by the department under this
19section. A person who is an employee of a licensee is not required to obtain a separate
20license.
AB1040,18,23 21(4) Cannabis grower licenses. (a) License criteria. The department may issue
22a grower license to an applicant only if the department determines that all of the
23following requirements are met:
AB1040,19,1124 1. The applicant, or each principal officer or board member of the applicant, has
25not been convicted of any crime, unless at least 10 years have passed since the

1completion of any sentence imposed for the crime, including any period of
2incarceration, parole, or extended supervision, and any period of probation imposed
3for the crime. The department, with the assistance of the department of justice, shall
4conduct a background investigation of any applicant or each principal officer or board
5member of any applicant who applies for a grower license under this section, which
6shall include requiring all such persons to be fingerprinted on 2 fingerprint cards
7each bearing a complete set of the person's fingerprints, or by other technologies
8approved by law enforcement agencies. The department of justice shall submit any
9such fingerprint cards to the federal bureau of investigation for the purposes of
10verifying the identity of the person fingerprinted and obtaining records of his or her
11criminal arrests and convictions.
AB1040,19,1312 2. The applicant pays the annual fee for growers established by the department
13under sub. (7).
AB1040,19,1514 3. The applicant is a resident, or at least 80 percent of the principal officers or
15board members of the applicant are residents.
AB1040,19,1816 4. The applicant submits to an inspection of the premises by the department,
17and the premises meets all requirements established by the department under sub.
18(2).
AB1040,19,2319 (b) Authorized activities. 1. A licensed grower may plant, grow, cultivate, and
20harvest cannabis; transport cannabis to or from any licensee; transfer or sell
21cannabis to a licensed processor that is contracted with the department under sub.
22(5); and engage in any related activities that are necessary for the operation, such
23as possessing and storing cannabis.
AB1040,19,2424 2. A licensed grower may operate only within an enclosed, locked facility.
AB1040,20,2
13. A licensed grower may not plant, grow, cultivate, or harvest cannabis for
2personal, family, or household use.
AB1040,20,53 (c) License renewal. A licensed grower shall annually renew the license issued
4under this section by applying to the department and paying the annual fee for
5growers established by the department under sub. (7).
AB1040,20,15 6(5) Medical cannabis processor contract, licenses. (a) Request for proposals;
7number of licenses, contracts limited.
1. The department shall obtain and review
8proposals from entities in this state to process medical cannabis products under this
9section in accordance with the department's request-for-proposal procedures.
10Except as provided under subd. 2., the department shall enter into a contract with
11only one processor to process medical cannabis products in this state until there are
12at least 50,000 patients included in the patient and caregiver registry under s.
13259.04, after which the department may license and contract with as many
14additional processors as necessary to process an adequate supply of medical
15cannabis products to meet the demand of patients in this state.
AB1040,20,1816 2. A processor with which the department contracts under subd. 1. may
17contract with one or more subcontractors to provide the processor's services. Each
18subcontractor shall obtain a separate license under this subsection.
AB1040,20,2119 (b) License criteria. The department may issue a processor license to an
20applicant only if the department determines that all of the following requirements
21are met:
AB1040,21,922 1. The applicant, or each principal officer or board member of the applicant, has
23not been convicted of any crime, unless at least 10 years have passed since the
24completion of any sentence imposed for the crime, including any period of
25incarceration, parole, or extended supervision, and any period of probation imposed

1for the crime. The department, with the assistance of the department of justice, shall
2conduct a background investigation of any applicant or each principal officer or board
3member of any applicant who applies for a processor license under this subsection,
4which shall include requiring all such persons to be fingerprinted on 2 fingerprint
5cards each bearing a complete set of the person's fingerprints, or by other
6technologies approved by law enforcement agencies. The department of justice shall
7submit any such fingerprint cards to the federal bureau of investigation for the
8purposes of verifying the identity of the person fingerprinted and obtaining records
9of his or her criminal arrests and convictions.
AB1040,21,1110 2. The applicant, or each principal officer or board member of the applicant, is
11at least 21 years of age.
AB1040,21,1312 3. The applicant pays the annual fee for processors established by the
13department under sub. (7).
AB1040,21,1514 4. The applicant is a resident, or at least 80 percent of the principal officers or
15board members of the applicant are residents.
AB1040,21,1816 5. The applicant submits to an inspection of the premises by the department,
17and the premises meets all requirements established by the department under sub.
18(2).
AB1040,21,1919 6. The applicant has entered into a contract under par. (a) 1. or 2.
AB1040,21,2420 (c) Authorized activities and requirements. 1. A licensed processor may obtain
21cannabis from a licensed grower, process cannabis into medical cannabis products,
22package and label medical cannabis products, transport cannabis or medical
23cannabis products to or from any licensee, and transfer, transport, or sell medical
24cannabis products to dispensaries.
AB1040,21,2525 2. A licensed processor may operate only within an enclosed, locked facility.
AB1040,22,3
13. A licensed processor shall process cannabis into medical cannabis products
2in a manner that minimizes the products' appeal to individuals under the age of 18.
3The department may establish, by rule, additional processing requirements.
AB1040,22,54 4. Before selling, transferring, or transporting medical cannabis products to
5any dispensary, a licensed processor shall do all of the following:
AB1040,22,116 a. Provide samples of each lot of medical cannabis product that it processes to
7a licensed laboratory and receive certified test results of those samples showing the
8tetrahydrocannabinol content of the medical cannabis products and showing that
9the medical cannabis products do not contain unsafe levels of any molds, pesticides,
10heavy metals, or any other contaminant for which the department requires, by rule,
11the medical cannabis products to be tested.
AB1040,22,1412 b. Package the medical cannabis products in child-resistant packaging and in
13a manner that minimizes its appeal to individuals under the age of 18. The
14department may establish, by rule, additional packaging requirements.
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