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AB68-SSA1,2308 19Section 2308. 139.77 (1) of the statutes is amended to read:
AB68-SSA1,1042,420 139.77 (1) On or before the 15th day of each month, every distributor with a
21place of business in this state shall file a return showing the quantity , including
22milliliters in the case of a vapor product,
and taxable price of each tobacco product
23or vapor product brought, or caused to be brought, into this state for sale; or made,
24manufactured or fabricated in this state for sale in this state, during the preceding
25month. Every distributor outside this state shall file a return showing the quantity,

1including milliliters in the case of a vapor product,
and taxable price of each tobacco
2product or vapor product shipped or transported to retailers in this state to be sold
3by those retailers during the preceding month. At the time that the return is filed,
4the distributor shall pay the tax.
AB68-SSA1,2309 5Section 2309. 139.78 (1) of the statutes is amended to read:
AB68-SSA1,1042,156 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco
7products in this state at the rate, for tobacco products, not including moist snuff and
8vapor products
little cigars, of 71 percent of the cost of the tobacco products
9manufacturer's list price and, for moist snuff, at the rate of 100 percent of the
10manufacturer's established list price to distributors without diminution by volume
11or other discounts on domestic products
. The tax imposed under this subsection on
12cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar.
13The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has
14been paid or if the tobacco products are exempt from the tobacco products tax under
15s. 139.76 (2).
AB68-SSA1,2310 16Section 2310 . 139.78 (1b) of the statutes is created to read:
AB68-SSA1,1042,2117 139.78 (1b) A tax is imposed and levied upon the use or storage of little cigars
18in this state by any person for any purpose. The tax is levied and shall be collected
19at the same rate as provided for in s. 139.76 (1b). The tax under this subsection does
20not apply if the tax imposed by s. 139.76 (1) has been paid or if the little cigars are
21exempt from tax under s. 139.76 (2).
AB68-SSA1,2311 22Section 2311. 139.78 (1m) of the statutes is amended to read:
AB68-SSA1,1043,423 139.78 (1m) A tax is imposed upon the use or storage by consumers of vapor
24products in this state at the rate of 5 cents per milliliter of the liquid or other
25substance based on the volume as listed by the manufacturer and at a proportionate

1rate for any other quantity or fractional part thereof
71 percent of the manufacturer's
2list price
. The tax does not apply if the tax imposed by s. 139.76 (1m) on the vapor
3products has been paid or if the vapor products are exempt from the vapor products
4tax under s. 139.76 (2).
AB68-SSA1,2312 5Section 2312 . 139.83 of the statutes is renumbered 139.83 (1).
AB68-SSA1,2313 6Section 2313 . 139.83 (2) of the statutes is created to read:
AB68-SSA1,1043,107 139.83 (2) Sections 139.315, 139.32, 139.321, 139.322, 139.34, 139.35, 139.36,
8139.362, 139.363, 139.38, 139.395, 139.41, 139.42, 139.43, and 139.44 (8), as they
9apply to the taxes under subch. II, apply to the administration and enforcement of
10this subchapter for little cigars.
AB68-SSA1,2314 11Section 2314 . Subchapter IV of chapter 139 [precedes 139.97] of the statutes
12is created to read:
AB68-SSA1,1043,1313 chapter 139
AB68-SSA1,1043,1414 subchapter Iv
AB68-SSA1,1043,1515 marijuana tax and regulation
AB68-SSA1,1043,16 16139.97 Definitions. In this subchapter:
AB68-SSA1,1043,17 17(1) “Department" means the department of revenue.
AB68-SSA1,1043,20 18(2) “Lot" means a definite quantity of marijuana or usable marijuana identified
19by a lot number, every portion or package of which is consistent with the factors that
20appear in the labeling.
AB68-SSA1,1043,22 21(3) “Lot number" means a number that specifies the person who holds a valid
22permit under this subchapter and the harvesting or processing date for each lot.
AB68-SSA1,1043,23 23(4) “Marijuana" has the meaning given in s. 961.70 (3).
AB68-SSA1,1044,2 24(5) “Marijuana distributor” means a person in this state who purchases or
25receives usable marijuana from a marijuana processor and who sells or otherwise

1transfers the usable marijuana to a marijuana retailer for the purpose of resale to
2consumers.
AB68-SSA1,1044,6 3(6) “Marijuana processor" means a person in this state who processes
4marijuana into usable marijuana, packages and labels usable marijuana for sale in
5retail outlets, and sells at wholesale or otherwise transfers usable marijuana to
6marijuana distributors.
AB68-SSA1,1044,8 7(7) “Marijuana producer" means a person in this state who produces marijuana
8and sells it at wholesale or otherwise transfers it to marijuana processors.
AB68-SSA1,1044,10 9(8) “Marijuana retailer" means a person in this state that sells usable
10marijuana at a retail outlet.
AB68-SSA1,1044,13 11(9) “Microbusiness” means a marijuana producer that produces marijuana in
12one area that is less than 10,000 square feet and who also operates as any 2 of the
13following:
AB68-SSA1,1044,1414 (a) A marijuana processor.
AB68-SSA1,1044,1515 (b) A marijuana distributor.
AB68-SSA1,1044,1616 (c) A marijuana retailer.
AB68-SSA1,1044,19 17(10) “Permittee" means a marijuana producer, marijuana processor, marijuana
18distributor, marijuana retailer, or microbusiness that is issued a permit under s.
19139.972.
AB68-SSA1,1044,20 20(11) “Retail outlet" means a location for the retail sale of usable marijuana.
AB68-SSA1,1044,21 21(12) “Sales price" has the meaning given in s. 77.51 (15b).
AB68-SSA1,1044,24 22(13) “Usable marijuana" means marijuana that has been processed for human
23consumption and includes dried marijuana flowers, marijuana-infused products,
24and marijuana edibles.
AB68-SSA1,1045,5
1139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana
2producer at the rate of 15 percent of the sales price on each wholesale sale or transfer
3in this state of marijuana to a marijuana processor. This paragraph applies to a
4microbusiness that transfers marijuana to a processing operation within the
5microbusiness.
AB68-SSA1,1045,96 (b) An excise tax is imposed on a marijuana retailer at the rate of 10 percent
7of the sales price on each retail sale in this state of usable marijuana, except that the
8tax does not apply to sales of usable marijuana to an individual who holds a valid tax
9exemption certificate issued under s. 73.17 (4).
AB68-SSA1,1045,13 10(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
11to the department no later than the 15th day of the month following the month in
12which the person's tax liability is incurred and shall include with the payment a
13return on a form prescribed by the department.
AB68-SSA1,1045,18 14(3) For purposes of this section, a marijuana producer may not sell marijuana
15directly to a marijuana distributor or marijuana retailer, and a marijuana retailer
16may purchase usable marijuana for resale only from a marijuana distributor. This
17subsection does not apply to a microbusiness that transfers marijuana or usable
18marijuana to another operation with the microbusiness.
AB68-SSA1,1045,24 19139.972 Permits required. (1) (a) No person may operate in this state as a
20marijuana producer, marijuana processor, marijuana distributor, marijuana
21retailer, or microbusiness without first filing an application for and obtaining the
22proper permit from the department to perform such operations. In addition, no
23person may operate in this state as a marijuana producer or marijuana processor
24without first filing an application for and obtaining the proper permit under s. 94.56.
AB68-SSA1,1046,3
1(b) This section applies to all officers, directors, agents, and stockholders
2holding 5 percent or more of the stock of any corporation applying for a permit under
3this section.
AB68-SSA1,1046,54 (c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may
5not be granted to any person to whom any of the following applies:
AB68-SSA1,1046,76 1. The person has been convicted of a violent misdemeanor, as defined in s.
7941.29 (1g) (b), at least 3 times.
AB68-SSA1,1046,98 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g)
9(a), unless pardoned.
AB68-SSA1,1046,1110 3. During the preceding 3 years, the person has been committed under s. 51.20
11for being drug dependent.
AB68-SSA1,1046,1612 4. The person chronically and habitually uses alcohol beverages or other
13substances to the extent that his or her normal faculties are impaired. A person is
14presumed to chronically and habitually use alcohol beverages or other substances to
15the extent that his or her normal faculties are impaired if, within the preceding 3
16years, any of the following applies:
AB68-SSA1,1046,1817 a. The person has been committed for involuntary treatment under s. 51.45
18(13).
AB68-SSA1,1046,1919 b. The person has been convicted of a violation of s. 941.20 (1) (b).
AB68-SSA1,1047,420 c. In 2 or more cases arising out of separate incidents, a court has found the
21person to have committed a violation of s. 346.63 or a local ordinance in conformity
22with that section; a violation of a law of a federally recognized American Indian tribe
23or band in this state in conformity with s. 346.63; or a violation of the law of another
24jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while
25intoxicated, while under the influence of a controlled substance, a controlled

1substance analog, or a combination thereof, with an excess or specified range of
2alcohol concentration, or while under the influence of any drug to a degree that
3renders the person incapable of safely driving, as those or substantially similar
4terms are used in that jurisdiction's laws.
AB68-SSA1,1047,65 5. The person has income that comes principally from gambling or has been
6convicted of 2 or more gambling offenses.
AB68-SSA1,1047,77 6. The person has been convicted of crimes relating to prostitution.
AB68-SSA1,1047,98 7. The person has been convicted of of crimes relating to loaning money or
9anything of value to persons holding licenses or permits pursuant to ch. 125.
AB68-SSA1,1047,1010 8. The person is under the age of 21.
AB68-SSA1,1047,1211 9. The person has not been a resident of this state continuously for at least 90
12days prior to the application date.
AB68-SSA1,1047,2013 (cm) An applicant with 20 or more employees may not receive a permit under
14this section to operate as a marijuana distributor or marijuana retailer unless the
15applicant certifies to the department that the applicant has entered into a labor
16peace agreement, as defined in s. 94.56 (1) (a), and will abide by the terms of the
17agreement as a condition of maintaining a valid permit under this section. The
18applicant shall submit to the department a copy of the page of the labor peace
19agreement that contains the signatures of the union representative and the
20applicant.
AB68-SSA1,1048,721 (cn) The department shall use a competitive scoring system to determine which
22applicants are eligible to receive a permit under this section. The department shall
23issue permits to the highest scoring applicants that it determines will best protect
24the environment; provide stable, family-supporting jobs to local residents; ensure
25worker and consumer safety; operate secure facilities; and uphold the laws of the

1jurisdictions in which they operate. The department shall, using criteria established
2by rule, score an applicant for a permit to operate as a marijuana retailer on the
3applicant's ability to articulate a social equity plan related to the operation of a
4marijuana retail establishment. The department may deny a permit to an applicant
5with a low score as determined under this paragraph. The department may request
6that the applicant provide any information or documentation that the department
7deems necessary for purposes of making a determination under this paragraph.
AB68-SSA1,1048,158 (d) 1. Before the department issues a new or renewed permit under this section,
9the department shall give notice of the permit application to the governing body of
10the municipality where the permit applicant intends to operate the premises of a
11marijuana producer, marijuana processor, marijuana distributor, marijuana
12retailer, or microbusiness. No later than 30 days after the department submits the
13notice, the governing body of the municipality may file with the department a written
14objection to granting or renewing the permit. At the municipality's request, the
15department may extend the period for filing objections.
AB68-SSA1,1049,416 2. A written objection filed under subd. 1. shall provide all the facts on which
17the objection is based. In determining whether to grant or deny a permit for which
18an objection has been filed under this paragraph, the department shall give
19substantial weight to objections from a municipality based on chronic illegal activity
20associated with the premises for which the applicant seeks a permit or the premises
21of any other operation in this state for which the applicant holds or has held a valid
22permit or license, the conduct of the applicant's patrons inside or outside the
23premises of any other operation in this state for which the applicant holds or has held
24a valid permit or license, and local zoning ordinances. In this subdivision, “ chronic
25illegal activity" means a pervasive pattern of activity that threatens the public

1health, safety, and welfare of the municipality, including any crime or ordinance
2violation, and that is documented in crime statistics, police reports, emergency
3medical response data, calls for service, field data, or similar law enforcement agency
4records.
AB68-SSA1,1049,95 (e) After denying a permit, the department shall immediately notify the
6applicant in writing of the denial and the reasons for the denial. After making a
7decision to grant or deny a permit for which a municipality has filed an objection
8under par. (d), the department shall immediately notify the governing body of the
9municipality in writing of its decision and the reasons for the decision.
AB68-SSA1,1049,1110 (f) 1. The department's denial of a permit under this section is subject to judicial
11review under ch. 227.
AB68-SSA1,1049,1312 2. The department's decision to grant a permit under this section regardless of
13an objection filed under par. (d) is subject to judicial review under ch. 227.
AB68-SSA1,1049,1514 (g) The department shall not issue a permit under this section to any person
15who does not hold a valid certificate under s. 73.03 (50).
AB68-SSA1,1049,22 16(2) Each person who applies for a permit under this section shall submit with
17the application a $250 fee. Each person who is granted a permit under this section
18shall annually pay to the department a $2,000 fee for as long as the person holds a
19valid permit under this section. A permit issued under this section is valid for one
20year and may be renewed, except that the department may revoke or suspend a
21permit prior to its expiration. A person is not entitled to a refund of the fees paid
22under this subsection if the person's permit is denied, revoked, or suspended.
AB68-SSA1,1050,2 23(3) The department may not issue a permit under this section to operate any
24premises which are within 500 feet of the perimeter of the grounds of any elementary

1or secondary school, playground, recreation facility, child care facility, public park,
2public transit facility, or library.
AB68-SSA1,1050,16 3(4) Under this section, a separate permit is required for and issued to each class
4of permittee, and the permit holder may perform only the operations authorized by
5the permit. A permit issued under this section is not transferable 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, marijuana distributor, marijuana retailer, or microbusiness occur,
9including each retail outlet. No person who has been issued a permit to operate as
10a marijuana retailer, or who has any direct or indirect financial interest in the
11operation of a marijuana retailer, shall be issued a permit to operate as a marijuana
12producer, marijuana processor, or marijuana distributor. A person who has been
13issued a permit to operate as a microbusiness is not required to hold separate permits
14to operate as a marijuana processor, marijuana distributor, or marijuana retailer,
15but shall specify on the person's application for a microbusiness permit the activities
16that the person will be engaged in as a microbusiness.
AB68-SSA1,1050,18 17(5) Each person issued a permit under this section shall post the permit in a
18conspicuous place on the premises to which the permit relates.
AB68-SSA1,1050,20 19139.973 Regulation. (1) (a) No permittee may employ an individual who is
20under the age of 21 to work in the business to which the permit relates.
AB68-SSA1,1050,2321 (b) Subject to ss. 111.321, 111.322, and 111.335, no permittee may employ an
22individual if any of the conditions under s. 139.972 (1) (c) 1. to 7. applies to the
23individual.
AB68-SSA1,1050,25 24(2) A retail outlet shall sell no products or services other than usable marijuana
25or paraphernalia intended for the storage or use of usable marijuana.
AB68-SSA1,1051,3
1(3) No marijuana retailer may allow a person who is under the age of 21 to enter
2or be on the premises of a retail outlet in violation of s. 961.71 (2m), unless that person
3is a qualifying patient, as defined in s. 73.17 (1) (d).
AB68-SSA1,1051,6 4(4) The maximum amount of usable marijuana that a retail outlet may sell to
5an individual consumer in a single transaction may not exceed the permissible
6amount under s. 961.70 (5).
AB68-SSA1,1051,9 7(4m) A marijuana retailer may not collect, retain, or distribute personal
8information regarding the retailer's customers except that which is necessary to
9complete a sale of usable marijuana.
AB68-SSA1,1051,13 10(5) No marijuana retailer may display any signage in a window, on a door, or
11on the outside of the premises of a retail outlet that is visible to the general public
12from a public right-of-way, other than a single sign that is no larger than 1,600
13square inches identifying the retail outlet by the permittee's business or trade name.
AB68-SSA1,1051,15 14(6) No marijuana retailer may display usable marijuana in a manner that is
15visible to the general public from a public right-of-way.
AB68-SSA1,1051,17 16(7) No marijuana retailer or employee of a retail outlet may consume, or allow
17to be consumed, any usable marijuana on the premises of the retail outlet.
AB68-SSA1,1051,19 18(7m) A marijuana retailer may operate a retail outlet only between the hours
19of 8 a.m. and 8 p.m.
AB68-SSA1,1051,23 20(8) Except as provided under sub. (5), no marijuana producer, marijuana
21processor, marijuana distributor, marijuana retailer, or microbusiness may place or
22maintain, or cause to be placed or maintained, an advertisement of usable marijuana
23in any form or through any medium.
AB68-SSA1,1052,7 24(9) (a) On a schedule determined by the department, every marijuana
25producer, marijuana processor, or microbusiness shall submit representative

1samples of the marijuana and usable marijuana produced or processed by the
2marijuana producer, marijuana processor, or microbusiness to a testing laboratory
3registered under s. 94.57 for testing marijuana and usable marijuana in order to
4certify that the marijuana and usable marijuana comply with standards prescribed
5by the department by rule, including testing for potency and for mold, fungus,
6pesticides, and other contaminants. The laboratory testing the sample shall destroy
7any part of the sample that remains after the testing.
AB68-SSA1,1052,108 (b) Marijuana producers, marijuana processors, and microbusinesses shall
9submit the results of the testing provided under par. (a) to the department in the
10manner prescribed by the department by rule.
AB68-SSA1,1052,1511 (c) If a representative sample tested under par. (a) does not meet the standards
12prescribed by the department, the department shall take the necessary action to
13ensure that the entire lot from which the sample was taken is destroyed. The
14department shall promulgate rules to determine lots and lot numbers for purposes
15of this subsection and for the reporting of lots and lot numbers to the department.
AB68-SSA1,1052,19 16(10) (a) A marijuana processor or a microbusiness that operates as a marijuana
17processor shall affix a label to all usable marijuana that the marijuana processor or
18microbusiness sells to marijuana distributors. The label may not be designed to
19appeal to persons under the age of 18. The label shall include all of the following:
AB68-SSA1,1052,2120 1. The ingredients and the tetrahydrocannabinols concentration in the usable
21marijuana.
AB68-SSA1,1052,2222 2. The producer's business or trade name.
AB68-SSA1,1052,2323 3. The licensee or registrant number.
AB68-SSA1,1052,2424 4. The unique identification number.
AB68-SSA1,1052,2525 5. The harvest date.
AB68-SSA1,1053,1
16. The strain name and product identity.
AB68-SSA1,1053,22 7. The net weight.
AB68-SSA1,1053,33 8. The activation time.
AB68-SSA1,1053,54 9. The name of laboratory performing any test, the test batch number, and the
5test analysis dates.
AB68-SSA1,1053,76 10. The logotype for recreational marijuana developed by the department of
7agriculture, trade and consumer protection under s. 100.145.
AB68-SSA1,1053,98 11. Warnings about the risks of marijuana use and pregnancy and risks of
9marijuana use by persons under the age of 18.
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