AB506,28,1919 (b) A marijuana distributor.
AB506,28,2020 (c) A marijuana retailer.
AB506,28,23 21(10) “Permittee" means a marijuana producer, marijuana processor, marijuana
22distributor, marijuana retailer, microbusiness, or operator of a marijuana lounge
23that is issued a permit under s. 139.972.
AB506,28,24 24(11) “Retail outlet" means a location for the retail sale of usable marijuana.
AB506,28,25 25(12) “Sales price" has the meaning given in s. 77.51 (15b).
AB506,29,3
1(13) “Usable marijuana" means marijuana that has been processed for human
2consumption and includes dried marijuana flowers, marijuana-infused products,
3and marijuana edibles.
AB506,29,8 4139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana
5producer at the rate of 15 percent of the sales price on each wholesale sale or transfer
6in this state of marijuana to a marijuana processor. This paragraph applies to a
7microbusiness that transfers marijuana to a processing operation within the
8microbusiness.
AB506,29,129 (b) An excise tax is imposed on a marijuana retailer or operator of a marijuana
10lounge at the rate of 10 percent of the sales price on each retail sale in this state of
11usable marijuana, except that the tax does not apply to sales of usable marijuana to
12an individual who holds a valid tax exemption certificate issued under s. 73.17 (4).
AB506,29,16 13(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
14to the department no later than the 15th day of the month following the month in
15which the person's tax liability is incurred and shall include with the payment a
16return on a form prescribed by the department.
AB506,29,22 17(3) For purposes of this section, a marijuana producer may not sell marijuana
18directly to a marijuana distributor, marijuana retailer, or operator of a marijuana
19lounge, and a marijuana retailer or operator of a marijuana lounge may purchase
20usable marijuana for resale only from a marijuana distributor. This subsection does
21not apply to a microbusiness that transfers marijuana or usable marijuana to
22another operation with the microbusiness.
AB506,30,4 23139.972 Permits required. (1) (a) No person may operate in this state as a
24marijuana producer, marijuana processor, marijuana distributor, marijuana
25retailer, microbusiness, or operator of a marijuana lounge without first filing an

1application for and obtaining the proper permit from the department to perform such
2operations. In addition, no person may operate in this state as a marijuana producer
3or marijuana processor without first filing an application for and obtaining the
4proper permit under s. 94.56.
AB506,30,75 (b) This section applies to all officers, directors, agents, and stockholders
6holding 5 percent or more of the stock of any corporation applying for a permit under
7this section.
AB506,30,98 (c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may
9not be granted to any person to whom any of the following applies:
AB506,30,1110 1. The person has been convicted of a violent misdemeanor, as defined in s.
11941.29 (1g) (b), at least 3 times.
AB506,30,1312 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g)
13(a), unless pardoned.
AB506,30,1514 3. During the preceding 3 years, the person has been committed under s. 51.20
15for being drug dependent.
AB506,30,2016 4. The person chronically and habitually uses alcohol beverages or other
17substances to the extent that his or her normal faculties are impaired. A person is
18presumed to chronically and habitually use alcohol beverages or other substances to
19the extent that his or her normal faculties are impaired if, within the preceding 3
20years, any of the following applies:
AB506,30,2221 a. The person has been committed for involuntary treatment under s. 51.45
22(13).
AB506,30,2323 b. The person has been convicted of a violation of s. 941.20 (1) (b).
AB506,31,824 c. In 2 or more cases arising out of separate incidents, a court has found the
25person to have committed a violation of s. 346.63 or a local ordinance in conformity

1with that section; a violation of a law of a federally recognized American Indian tribe
2or band in this state in conformity with s. 346.63; or a violation of the law of another
3jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while
4intoxicated, while under the influence of a controlled substance, a controlled
5substance analog, or a combination thereof, with an excess or specified range of
6alcohol concentration, or while under the influence of any drug to a degree that
7renders the person incapable of safely driving, as those or substantially similar
8terms are used in that jurisdiction's laws.
AB506,31,109 5. The person has income that comes principally from gambling or has been
10convicted of 2 or more gambling offenses.
AB506,31,1111 6. The person has been convicted of crimes relating to prostitution.
AB506,31,1312 7. The person has been convicted of of crimes relating to loaning money or
13anything of value to persons holding licenses or permits pursuant to ch. 125.
AB506,31,1414 8. The person is under the age of 21.
AB506,31,1615 9. The person has not been a resident of this state continuously for at least 90
16days prior to the application date.
AB506,31,2417 (cm) Notwithstanding ss. 66.0134 and 947.21, an applicant with 20 or more
18employees may not receive a permit under this section to operate as a marijuana
19distributor or marijuana retailer unless the applicant certifies to the department
20that the applicant has entered into a labor peace agreement, as defined in s. 94.56
21(1) (a), and will abide by the terms of the agreement as a condition of maintaining
22a valid permit under this section. The applicant shall submit to the department a
23copy of the page of the labor peace agreement that contains the signatures of the
24labor organization representative and the applicant.
AB506,32,13
1(cn) The department shall use a competitive scoring system to determine which
2applicants are eligible to receive a permit under this section. The department shall
3issue permits to the highest scoring applicants that it determines will best protect
4the environment; provide stable, family-supporting jobs to local residents; ensure
5worker and consumer safety; operate secure facilities; and uphold the laws of the
6jurisdictions in which they operate. The department shall, using criteria established
7by rule, score an applicant for a permit to operate as a marijuana retailer or as an
8operator of a marijuana lounge on the applicant's ability to articulate a social equity
9plan related to the operation of a marijuana retail establishment. The department
10may deny a permit to an applicant with a low score as determined under this
11paragraph. The department may request that the applicant provide any information
12or documentation that the department deems necessary for purposes of making a
13determination under this paragraph.
AB506,32,1714 (cs) A permit under this section for an operator of a marijuana lounge may
15authorize the operation of a marijuana lounge only in a municipality or county that
16has enacted an ordinance authorizing the establishment of marijuana lounges in the
17municipality or county.
AB506,32,2018 (ct) No marijuana retailer or operator of a marijuana lounge may hold a permit
19or license to sell alcohol, tobacco products, or cigarettes on the premises of the retail
20operation or lounge.
AB506,33,321 (d) 1. Before the department issues a new or renewed permit under this section,
22the department shall give notice of the permit application to the governing body of
23the municipality where the permit applicant intends to operate the premises of a
24marijuana producer, marijuana processor, marijuana distributor, marijuana
25retailer, microbusiness, or marijuana lounge. No later than 30 days after the

1department submits the notice, the governing body of the municipality may file with
2the department a written objection to granting or renewing the permit. At the
3municipality's request, the department may extend the period for filing objections.
AB506,33,174 2. A written objection filed under subd. 1. shall provide all the facts on which
5the objection is based. In determining whether to grant or deny a permit for which
6an objection has been filed under this paragraph, the department shall give
7substantial weight to objections from a municipality based on chronic illegal activity
8associated with the premises for which the applicant seeks a permit or the premises
9of any other operation in this state for which the applicant holds or has held a valid
10permit or license, the conduct of the applicant's patrons inside or outside the
11premises of any other operation in this state for which the applicant holds or has held
12a valid permit or license, and local zoning ordinances. In this subdivision, “ chronic
13illegal activity" means a pervasive pattern of activity that threatens the public
14health, safety, and welfare of the municipality, including any crime or ordinance
15violation, and that is documented in crime statistics, police reports, emergency
16medical response data, calls for service, field data, or similar law enforcement agency
17records.
AB506,33,2218 (e) After denying a permit, the department shall immediately notify the
19applicant in writing of the denial and the reasons for the denial. After making a
20decision to grant or deny a permit for which a municipality has filed an objection
21under par. (d), the department shall immediately notify the governing body of the
22municipality in writing of its decision and the reasons for the decision.
AB506,33,2423 (f) 1. The department's denial of a permit under this section is subject to judicial
24review under ch. 227.
AB506,34,2
12. The department's decision to grant a permit under this section regardless of
2an objection filed under par. (d) is subject to judicial review under ch. 227.
AB506,34,43 (g) The department shall not issue a permit under this section to any person
4who does not hold a valid certificate under s. 73.03 (50).
AB506,34,11 5(2) Each person who applies for a permit under this section shall submit with
6the application a $250 fee. Each person who is granted a permit under this section
7shall annually pay to the department a $2,000 fee for as long as the person holds a
8valid permit under this section. A permit issued under this section is valid for one
9year and may be renewed, except that the department may revoke or suspend a
10permit prior to its expiration. A person is not entitled to a refund of the fees paid
11under this subsection if the person's permit is denied, revoked, or suspended.
AB506,34,15 12(3) The department may not issue a permit under this section to operate any
13premises which are within 500 feet of the perimeter of the grounds of any elementary
14or secondary school, playground, recreation facility, child care facility, public park,
15public transit facility, or library.
AB506,35,5 16(4) Under this section, a separate permit is required for and issued to each class
17of permittee, and the permit holder may perform only the operations authorized by
18the permit. A permit issued under this section is not transferable from one person
19to another or from one premises to another. A separate permit is required for each
20place in this state where the operations of a marijuana producer, marijuana
21processor, marijuana distributor, marijuana retailer, operator of a marijuana lounge,
22or microbusiness occur, including each retail outlet. No person who has been issued
23a permit to operate as a marijuana retailer or operator of a marijuana lounge, or who
24has any direct or indirect financial interest in the operation of a marijuana retailer
25or operator of a marijuana lounge, shall be issued a permit to operate as a marijuana

1producer, marijuana processor, or marijuana distributor. A person who has been
2issued a permit to operate as a microbusiness is not required to hold separate permits
3to operate as a marijuana processor, marijuana distributor, or marijuana retailer,
4but shall specify on the person's application for a microbusiness permit the activities
5that the person will be engaged in as a microbusiness.
AB506,35,7 6(5) Each person issued a permit under this section shall post the permit in a
7conspicuous place on the premises to which the permit relates.
AB506,35,9 8139.973 Regulation. (1) (a) No permittee may employ an individual who is
9under the age of 21 to work in the business to which the permit relates.
AB506,35,1210 (b) Subject to ss. 111.321, 111.322, and 111.335, no permittee may employ an
11individual if any of the conditions under s. 139.972 (1) (c) 1. to 7. applies to the
12individual.
AB506,35,15 13(2) A retail outlet other than a marijuana lounge shall sell no products or
14services other than usable marijuana or paraphernalia intended for the storage or
15use of usable marijuana.
AB506,35,19 16(3) No marijuana retailer or operator of a marijuana lounge may allow a person
17who is under the age of 21 to enter or be on the premises of a retail outlet in violation
18of s. 961.71 (2m), unless that person is a qualifying patient, as defined in s. 73.17 (1)
19(d).
AB506,35,22 20(4) The maximum amount of usable marijuana that a retail outlet may sell to
21an individual consumer in a single transaction may not exceed a permissible amount,
22as defined in s. 961.70 (3).
AB506,35,25 23(4m) A marijuana retailer or operator of a marijuana lounge may not collect,
24retain, or distribute personal information regarding the retailer's or operator's
25customers except that which is necessary to complete a sale of usable marijuana.
AB506,36,4
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.
AB506,36,7 5(6) No marijuana retailer or operator of a marijuana lounge may display usable
6marijuana in a manner that is visible to the general public from a public
7right-of-way.
AB506,36,9 8(7) No marijuana retailer or employee of a retail outlet may consume, or allow
9to be consumed, any usable marijuana on the premises of the retail outlet.
AB506,36,11 10(7m) A marijuana retailer or operator of a marijuana lounge may operate a
11retail outlet only between the hours of 8 a.m. and 8 p.m.
AB506,36,15 12(8) Except as provided under sub. (5), no marijuana producer, marijuana
13processor, marijuana distributor, marijuana retailer, operator of a marijuana lounge,
14or microbusiness may place or maintain, or cause to be placed or maintained, an
15advertisement of usable marijuana in any form or through any medium.
AB506,36,24 16(9) (a) On a schedule determined by the department, every marijuana
17producer, marijuana processor, or microbusiness shall submit representative
18samples of the marijuana and usable marijuana produced or processed by the
19marijuana producer, marijuana processor, or microbusiness to a testing laboratory
20registered under s. 94.57 for testing marijuana and usable marijuana in order to
21certify that the marijuana and usable marijuana comply with standards prescribed
22by the department by rule, including testing for potency and for mold, fungus,
23pesticides, and other contaminants. The laboratory testing the sample shall destroy
24any part of the sample that remains after the testing.
AB506,37,3
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.
AB506,37,84 (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.
AB506,37,12 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:
AB506,37,1413 1. The ingredients and the tetrahydrocannabinols concentration in the usable
14marijuana.
AB506,37,1515 2. The producer's business or trade name.
AB506,37,1616 3. The producer's permit number.
AB506,37,1717 4. The harvest batch number of the marijuana.
AB506,37,1818 5. The harvest date.
AB506,37,1919 6. The strain name and product identity.
AB506,37,2020 7. The net weight.
AB506,37,2121 8. The activation time.
AB506,37,2322 9. The name of laboratory performing any test, the test batch number, and the
23test analysis dates.
AB506,37,2524 10. The logotype for recreational marijuana developed by the department of
25agriculture, trade and consumer protection under s. 100.145.
AB506,38,2
111. Warnings about the risks of marijuana use and pregnancy and risks of
2marijuana use by persons under the age of 18.
AB506,38,63 (b) No marijuana processor or microbusiness that operates as a marijuana
4processor may make usable marijuana using marijuana grown outside this state.
5The label on each package of usable marijuana may indicate that the usable
6marijuana is made in this state.
AB506,38,8 7(11) (a) No permittee may sell marijuana or usable marijuana that contains
8more than 3 parts tetrahydrocannabinols to one part cannabidiol.
AB506,38,129 (b) No permittee may sell marijuana or usable marijuana that tests positive
10under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the
11contaminants, or level of contaminants, are identified by a testing laboratory to be
12potentially unsafe to the consumer.
AB506,38,16 13(12) Immediately after beginning employment with a permittee, every
14employee of a permittee shall receive training, approved by the department, on the
15safe handling of marijuana and usable marijuana and on security and inventory
16accountability procedures.
AB506,38,18 17(13) The department shall deposit 60 percent of all moneys received under this
18subchapter into the community reinvestment fund.
AB506,38,25 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.
AB506,39,10
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.
AB506,39,20 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.
AB506,39,25 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 shall publish production and sales statistics.
AB506,40,3
1139.975 Administration and enforcement. (1) The department shall
2administer and enforce this subchapter and promulgate rules necessary to
3administer and enforce this subchapter.
AB506,40,5 4(2) The duly authorized employees of the department have all necessary police
5powers to prevent violations of this subchapter.
AB506,40,12 6(3) Authorized personnel of the department of justice and the department of
7revenue, and any law enforcement officer, within their respective jurisdictions, may
8at all reasonable hours enter the premises of any permittee and examine the books
9and records to determine whether the tax imposed by this subchapter has been fully
10paid and may enter and inspect any premises where marijuana or usable marijuana
11is produced, processed, made, sold, or stored to determine whether the permittee is
12complying with this subchapter.
AB506,40,16 13(4) The department may suspend or revoke the permit of any permittee who
14violates s. 100.30, any provision of this subchapter, or any rules promulgated under
15sub. (1). The department shall revoke the permit of any permittee who violates s.
16100.30 3 or more times within a 5-year period.
AB506,40,24 17(5) No suit shall be maintained in any court to restrain or delay the collection
18or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax
19when due and, if paid under protest, may at any time within 90 days from the date
20of payment sue the state to recover the tax paid. If it is finally determined that any
21part of the tax was wrongfully collected, the secretary of administration shall pay the
22amount wrongfully collected. A separate suit need not be filed for each separate
23payment made by any taxpayer, but a recovery may be had in one suit for as many
24payments as may have been made.
AB506,41,6
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.
AB506,41,87 (b) The immunity provided under par. (a) is subject to the restrictions under
8s. 972.085.
AB506,41,10 9(7) The provisions on timely filing under s. 71.80 (18) apply to the tax imposed
10under this subchapter.
AB506,41,16 11(8) Sections 71.74 (1), (2), (10), (11), and (14), 71.77, 71.91 (1) (a) and (c) and
12(2) to (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.
AB506,41,20 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.
AB506,41,23 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.
AB506,42,5 24139.976 Theft of tax moneys. All marijuana tax moneys received by a
25permittee for the sale of marijuana or usable marijuana on which the tax under this

1subchapter has become due and has not been paid are trust funds in the permittee's
2possession and are the property of this state. Any permittee who fraudulently
3withholds, appropriates, or otherwise uses marijuana tax moneys that are the
4property of this state is guilty of theft under s. 943.20 (1), whether or not the
5permittee has or claims to have an interest in those moneys.
AB506,42,11 6139.977 Seizure and confiscation. (1) All marijuana and usable marijuana
7produced, processed, made, kept, stored, sold, distributed, or transported in violation
8of this subchapter, and all tangible personal property used in connection with the
9marijuana or usable marijuana, is unlawful property and subject to seizure by the
10department or a law enforcement officer. Except as provided in sub. (2), all
11marijuana and usable marijuana seized under this subsection shall be destroyed.
AB506,42,17 12(2) If marijuana or usable marijuana on which the tax has not been paid is
13seized as provided under sub. (1), it may be given to law enforcement officers to use
14in criminal investigations or sold to qualified buyers by the department, without
15notice. If the department finds that the marijuana or usable marijuana may
16deteriorate or become unfit for use in criminal investigations or for sale, or that those
17uses would otherwise be impractical, the department may order it destroyed.
AB506,42,24 18(3) If marijuana or usable marijuana on which the tax has been paid is seized
19as provided under sub. (1), it shall be returned to the true owner if ownership can be
20ascertained and the owner or the owner's agent is not involved in the violation
21resulting in the seizure. If the ownership cannot be ascertained or if the owner or
22the owner's agent was guilty of the violation that resulted in the seizure of the
23marijuana or usable marijuana, it may be sold or otherwise disposed of as provided
24in sub. (2).
Loading...
Loading...