SB1035: Bill Text

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:

SB1035,1 Section 1 . 20.115 (7) (ge) of the statutes is created to read:

SB1035,4,4 20.115 (7) (ge) Medical cannabis licenses and registration. All moneys received under s. 94.57 (4) to license and regulate producers, processors, and dispensaries, and to register laboratories, under s. 94.57.

SB1035,2 Section 2 . 20.435 (1) (gq) of the statutes is created to read:

SB1035,4,8 20.435 (1) (gq) Medical cannabis registry. All moneys received as fees under s. 146.44 (2) (a) 4. and (ac) 3. and (4m) for the purposes of the medical cannabis registry program under s. 146.44.

SB1035,3 Section 3 . 59.54 (25) (a) (intro.) of the statutes is amended to read:

SB1035,4,20 59.54 (25) (a) (intro.) The board may enact and enforce an ordinance to prohibit the possession of marijuana, as defined in s. 961.01 (14), subject to par. (c) and the exceptions in s. 961.41 (3g) (intro.), and provide a forfeiture for a violation of the ordinance; except that if. Any ordinance enacted under this paragraph shall provide a person who is prosecuted under it with the defenses that the person has under s. 961.436 to prosecutions under s. 961.41 (1) (h), (1m) (h), or (3g) (e). If a complaint is issued regarding an allegation of possession of more than 25 grams of marijuana, or possession of any amount of marijuana following a conviction in this state for possession of marijuana, the subject of the complaint may not be prosecuted under this subsection for the same action that is the subject of the complaint unless all of the following occur:

SB1035,4 Section 4 . 59.54 (25) (c) of the statutes is created to read:

SB1035,5,3 59.54 (25) (c) A person may not be prosecuted under an ordinance enacted under par. (a) if, under s. 968.072 (2) or (4) (b), the person would not be subject to prosecution under s. 961.41 (3g) (e).

SB1035,5 Section 5 . 59.54 (25m) of the statutes is amended to read:

SB1035,5,14 59.54 (25m) Drug paraphernalia. The board may enact an ordinance to prohibit conduct that is the same as that prohibited by s. 961.573 (1) or (2), 961.574 (1) or (2), or 961.575 (1) or (2) and provide a forfeiture for violation of the ordinance. Any ordinance enacted under this subsection shall provide a person prosecuted under it with the defenses that the person has under s. 961.5755 to prosecutions under s. 961.573 (1), 961.574 (1), or 961.575 (1). A person may not be prosecuted under an ordinance enacted under this subsection if, under s. 968.072 (3) or (4) (b), the person would not be subject to prosecution under s. 961.573 (1), 961.574 (1), or 961.575 (1). The board may enforce an ordinance enacted under this subsection in any municipality within the county.

SB1035,6 Section 6 . 66.0107 (1) (bm) of the statutes is amended to read:

SB1035,6,2 66.0107 (1) (bm) Enact and enforce an ordinance to prohibit the possession of marijuana, as defined in s. 961.01 (14), subject to the exceptions in s. 961.41 (3g) (intro.), and provide a forfeiture for a violation of the ordinance ; except that if. Any ordinance enacted under this paragraph shall provide a person who is prosecuted under it with the defenses that the person has under s. 961.436 to prosecutions under s. 961.41 (1) (h), (1m) (h), or (3g) (e). If a complaint is issued regarding an allegation of possession of more than 25 grams of marijuana, or possession of any amount of marijuana following a conviction in this state for possession of marijuana, the subject of the complaint may not be prosecuted under this paragraph for the same action that is the subject of the complaint unless the charges are dismissed or the district attorney declines to prosecute the case.

SB1035,7 Section 7 . 66.0107 (1) (bp) of the statutes is amended to read:

SB1035,6,11 66.0107 (1) (bp) Enact and enforce an ordinance to prohibit conduct that is the same as that prohibited by s. 961.573 (1) or (2), 961.574 (1) or (2), or 961.575 (1) or (2) and provide a forfeiture for violation of the ordinance. Any ordinance enacted under this paragraph shall provide a person prosecuted under it with the defenses that the person has under s. 961.5755 to prosecutions under s. 961.573 (1), 961.574 (1), or 961.575 (1). A person may not be prosecuted under an ordinance enacted under this paragraph if, under s. 968.072 (3) or (4) (b), the person would not be subject to prosecution under s. 961.573 (1), 961.574 (1), or 961.575 (1).

SB1035,8 Section 8 . 66.0440 of the statutes is created to read:

SB1035,6,16 66.0440 Medical cannabis. No village, town, city, or county may enact or enforce an ordinance or a resolution that prohibits producing, processing, dispensing, testing, or possessing medical cannabis if those actions are lawfully done by any of the following:

SB1035,6,17 (1) A licensee under s. 94.57.

SB1035,6,20 (2) If the amount of cannabis does not exceed the maximum authorized amount, as defined in s. 961.01 (14c), a person who has a valid registry identification card, as defined in s. 146.44 (1) (g), and is any of the following:

SB1035,6,22 (a) A qualifying patient, as defined in s. 146.44 (1) (e), who is taking the actions to provide medical cannabis for his or her own use.

SB1035,6,24 (b) A primary caregiver, as defined in s. 146.44 (1) (d), who is taking the actions to provide medical cannabis for his or her qualifying patient.

SB1035,9 Section 9 . 66.1201 (2m) of the statutes is amended to read:

SB1035,7,9 66.1201 (2m) Discrimination. Persons otherwise entitled to any right, benefit, facility, or privilege under ss. 66.1201 to 66.1211 may not be denied the right, benefit, facility, or privilege in any manner for any purpose nor be discriminated against because of sex, race, color, creed, or sexual orientation,; status as a victim of domestic abuse, sexual assault, or stalking, as defined in s. 106.50 (1m) (u) ,; whether the person holds, or has applied for, a registry identification card, as defined in s. 146.44 (1) (g), has been the subject of a written certification, as defined in s. 146.44 (1) (h), or is or has been a member of a treatment team, as defined in s. 961.01 (20t); or national origin.

SB1035,10 Section 10 . 66.1213 (3) of the statutes is amended to read:

SB1035,7,19 66.1213 (3) Discrimination. Persons otherwise entitled to any right, benefit, facility, or privilege under this section may not be denied the right, benefit, facility, or privilege in any manner for any purpose nor be discriminated against because of sex, race, color, creed, or sexual orientation ,; status as a victim of domestic abuse, sexual assault, or stalking, as defined in s. 106.50 (1m) (u),; whether the person holds, or has applied for, a registry identification card, as defined in s. 146.44 (1) (g), has been the subject of a written certification, as defined in s. 146.44 (1) (h), or is or has been a member of a treatment team, as defined in s. 961.01 (20t); or national origin.

SB1035,11 Section 11 . 66.1301 (2m) of the statutes is amended to read:

SB1035,8,4 66.1301 (2m) Discrimination. Persons entitled to any right, benefit, facility, or privilege under ss. 66.1301 to 66.1329 may not be denied the right, benefit, facility, or privilege in any manner for any purpose nor be discriminated against because of sex, race, color, creed, or sexual orientation ,; status as a victim of domestic abuse, sexual assault, or stalking, as defined in s. 106.50 (1m) (u),; whether the person holds, or has applied for, a registry identification card, as defined in s. 146.44 (1) (g), has been the subject of a written certification, as defined in s. 146.44 (1) (h), or is or has been a member of a treatment team, as defined in s. 961.01 (20t); or national origin.

SB1035,12 Section 12 . 66.1331 (2m) of the statutes is amended to read:

SB1035,8,14 66.1331 (2m) Discrimination. Persons otherwise entitled to any right, benefit, facility, or privilege under this section may not be denied the right, benefit, facility, or privilege in any manner for any purpose nor be discriminated against because of sex, race, color, creed, or sexual orientation ,; status as a victim of domestic abuse, sexual assault, or stalking, as defined in s. 106.50 (1m) (u),; whether the person holds, or has applied for, a registry identification card, as defined in s. 146.44 (1) (g), has been the subject of a written certification, as defined in s. 146.44 (1) (h), or is or has been a member of a treatment team, as defined in s. 961.01 (20t); or national origin.

SB1035,13 Section 13 . 66.1333 (3) (e) 2. of the statutes is amended to read:

SB1035,8,23 66.1333 (3) (e) 2. Persons otherwise entitled to any right, benefit, facility, or privilege under this section may not be denied the right, benefit, facility, or privilege in any manner for any purpose nor be discriminated against because of sex, race, color, creed, or sexual orientation, ; status as a victim of domestic abuse, sexual assault, or stalking, as defined in s. 106.50 (1m) (u), ; whether the person holds, or has applied for, a registry identification card, as defined in s. 146.44 (1) (g), has been the subject of a written certification, as defined in s. 146.44 (1) (h), or is or has been a member of a treatment team, as defined in s. 961.01 (20t); or national origin.

SB1035,14 Section 14 . 77.52 (13) of the statutes is amended to read:

SB1035,9,12 77.52 (13) For the purpose of the proper administration of this section and to prevent evasion of the sales tax it shall be presumed that all receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services is not a taxable sale at retail is upon the person who makes the sale unless that person takes from the purchaser an electronic or a paper certificate, in a manner prescribed by the department, to the effect that the property, item, good, or service is purchased for resale or is otherwise exempt, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), (52), (66), and (67), and (70).

SB1035,15 Section 15 . 77.53 (10) of the statutes is amended to read:

SB1035,9,24 77.53 (10) For the purpose of the proper administration of this section and to prevent evasion of the use tax and the duty to collect the use tax, it is presumed that tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services sold by any person for delivery in this state is sold for storage, use, or other consumption in this state until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless that person takes from the purchaser an electronic or paper certificate, in a manner prescribed by the department, to the effect that the property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable service is purchased for resale, or otherwise exempt from the tax, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services that are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), (52), and (67), and (70).

SB1035,16 Section 16 . 77.54 (70) of the statutes is created to read:

SB1035,10,6 77.54 (70) The sales price from the sales of and the storage, use, or other consumption of medical cannabis and drug paraphernalia delivered or distributed by a dispensary licensed under s. 94.57.

SB1035,17 Section 17 . 94.57 of the statutes is created to read:

SB1035,10,8 94.57 Medical cannabis. (1) Definitions. In this section:

SB1035,10,13 (b) “Dispensary” means a person who obtains packaged and labeled medical cannabis from a licensed processor and dispenses that cannabis, and cannabis paraphernalia, at a permanent location to a member of a treatment team holding a valid registry identification card, regardless of whether the dispensing is done in exchange for monetary consideration.

SB1035,10,16 (c) “Laboratory” means a person who obtains medical cannabis from a licensed processor and tests that cannabis for tetrahydrocannabinol content and the presence of molds, pesticides, heavy metals, and other contaminants.

SB1035,10,18 (d) “Licensee” means a producer, processor, or dispensary that holds a valid license under this section.

SB1035,10,19 (e) “Maximum authorized amount" has the meaning given in s. 961.01 (14c).

SB1035,10,22 (f) “Medical cannabis" means a cannabis plant or usable cannabis that is intended to be used by a qualifying patient registered under s. 146.44 to alleviate the symptoms or effects of the patient's debilitating medical condition or treatment.

SB1035,11,2 (g) “Processor" means a person who obtains medical cannabis from a licensed producer, processes the medical cannabis into usable cannabis or individual cannabis plants, packages and labels the usable cannabis or cannabis plants, and transfers or sells the packaged and labeled usable cannabis or cannabis plants to a licensed dispensary.

SB1035,11,5 (h) “Producer” means a person who plants, grows, cultivates, or harvests more than 12 cannabis plants for medical cannabis and transfers or sells the medical cannabis to a licensed processor.

SB1035,11,6 (i) “Qualifying patient" has the meaning given in s. 146.44 (1) (e).

SB1035,11,7 (j) “Registry identification card" has the meaning given in s. 146.44 (1) (g).

SB1035,11,8 (k) “School” has the meaning given in s. 118.257 (1) (d).

SB1035,11,9 (L) “Treatment team" has the meaning given in s. 961.01 (20t).

SB1035,11,10 (m) “Usable cannabis” has the meaning given in s. 961.01 (21f).

SB1035,11,19 (2) License required. No person may operate in this state as a producer, processor, or dispensary without a license issued by the department under this section. A person who engages in more than one of these activities shall obtain a separate license for each activity. A licensee may engage in the licensed activity at more than one location without obtaining a separate license. No licensee may operate at more than 2 separate locations, regardless of the number of licenses held. A person who is an employee of a licensee is not required to obtain a separate license. A person is not required to obtain a license under this section if the person handles only industrial hemp and holds a valid license under s. 94.55.

SB1035,11,22 (3) License criteria. (a) The department may issue a license under this section to an applicant only if the applicant has been a resident of this state for at least the 2 years immediately preceding the date of application.

SB1035,11,24 (b) The department may not issue a license to, and must revoke a license of, any entity to which any of the following applies:

SB1035,11,25 1. The entity is located within 500 feet of a school, including a charter school.

SB1035,12,4 2. If the entity is a dispensary, the dispensary distributes to a member of a treatment team a number of cannabis plants or an amount of usable cannabis that, in the period of distribution, results in the treatment team possessing more than the maximum authorized amount.

SB1035,12,8 3. The dispensary possesses a number of cannabis plants or an amount of usable cannabis that exceeds the combined maximum authorized amount for all of the treatment teams that use the dispensary by a number or an amount determined by the department by rule to be unacceptable.

SB1035,12,10 4. The applicant, or a principal officer or board member of the applicant, has a financial interest in a registered laboratory.

SB1035,12,13 (4) Licensing procedure; fees; license term. (a) An application for a license under this section shall be in writing on a form provided by the department and include the licensing application fee under par. (b) 1.

SB1035,12,15 (b) 1. A licensing application fee shall be an amount determined by the department but not less than $250.

SB1035,12,17 2. The annual fee for a licensee shall be an amount determined by the department but not less than $5,000.

SB1035,12,19 (c) A license is valid unless revoked. Each license shall be issued only for the applicant named in the application and may not be transferred or assigned.

SB1035,12,24 (5) Producers. (a) A licensed producer may plant, grow, cultivate, and harvest medical cannabis, including planting, growing, cultivating, and harvesting outdoors; transfer or sell the medical cannabis to a licensed processor; and engage in any related activities that are necessary for the operation, such as possessing, storing, and transporting the medical cannabis.

SB1035,13,2 (b) A licensed producer may not plant, grow, cultivate, or harvest medical cannabis for personal, family, or household use.

SB1035,13,10 (6) Processors. (a) A licensed processor may obtain medical cannabis from a licensed producer; process the medical cannabis into usable cannabis or individual cannabis plants; transfer samples of the usable cannabis or individual cannabis plants to a registered laboratory; package and label the usable cannabis or individual cannabis plants; transfer or sell the usable cannabis or individual cannabis plants to a licensed dispensary; and engage in any related activities that are necessary for the operation, such as possessing, storing, and transporting the usable cannabis or individual cannabis plants.

SB1035,13,17 (b) Before distributing medical cannabis to a licensed dispensary, a licensed processor shall provide samples of each type of cannabis plant and usable cannabis that it processes to a registered laboratory to test for mold, fungus, pesticides, and other contaminants and may not distribute medical cannabis that tests positive for mold, fungus, pesticides, or other contaminants if the contaminants or the level of contaminants is identified by the laboratory as being potentially unsafe to an individual's health.

SB1035,13,22 (7) Dispensaries. (a) A licensed dispensary may obtain packaged, labeled medical cannabis from a licensed processor; dispense the medical cannabis according to the provisions of this section; and engage in any related activities that are necessary for the operation, such as possessing, storing, and transporting the medical cannabis.

SB1035,13,24 (b) A licensed dispensary may dispense medical cannabis only to a person who presents a valid registry identification card.

SB1035,14,2 (c) The department shall determine which and how many applicants for a dispensary license receive a license on the basis of all of the following:

SB1035,14,3 1. Convenience to treatment teams and the preferences of treatment teams.

SB1035,14,5 2. The ability of the applicant to provide to treatment teams a sufficient amount of medical cannabis.

SB1035,14,7 3. The experience the applicant has running a nonprofit organization or a business.

SB1035,14,9 4. The preferences of the governing bodies with jurisdiction over the area in which the applicants are located.

SB1035,14,11 5. The ability of the applicant to keep records confidential and maintain a safe and secure facility.

SB1035,14,12 6. The ability of the applicant to abide by the prohibitions under sub. (3) (b).

SB1035,14,21 (8) Laboratories. The department shall register entities as medical cannabis testing laboratories. The department may not register a laboratory if any principal officer or board member of the entity has any financial interest in a licensee or an applicant for a license under this section. A registered laboratory may obtain samples of medical cannabis from a licensed processor; test and certify the tetrahydrocannabinol content of the medical cannabis and whether the medical cannabis contains any contaminants; and engage in any related activities that are necessary for the operation, such as possessing, storing, and transporting the medical cannabis. Registered laboratories shall perform the following services:

SB1035,14,23 (a) Testing medical cannabis for potency and for mold, fungus, pesticides, and other contaminants.

SB1035,14,25 (b) Researching findings related to medical cannabis, including findings that identify potentially unsafe levels of contaminants.

SB1035,15,2 (c) Providing training to persons who hold registry identification cards, treatment teams, and persons employed by licensees on all of the following:

SB1035,15,4 1. The safe and efficient cultivation, harvesting, packaging, labeling, and distribution of medical cannabis.

SB1035,15,5 2. Security and inventory accountability procedures.

SB1035,15,6 3. The most recent research on medical cannabis.

SB1035,15,10 (9) Confidentiality. The department may disclose to a law enforcement agency only information necessary to verify that a licensee has a valid license issued under this section, an entity is complying with rules promulgated under sub. (11), or a laboratory is registered under sub. (8).

SB1035,15,13 (10) Inspections. The department may inspect, without prior notice, the premises of an applicant, licensee, or registered laboratory and any records required to be retained by a licensee or registered laboratory.

SB1035,15,17 (11) Rules. (a) The department shall promulgate rules to administer and enforce this section. Rules promulgated under this subsection shall be designed to promote and prioritize producers, processors, and dispensaries that are small, local organizations.

SB1035,16,5 (b) When promulgating rules under this subsection, the department may, as necessary, use the procedure under s. 227.24 to promulgate emergency rules. Notwithstanding s. 227.24 (1) (a) and (3), when promulgating emergency rules under this subsection, the department is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection. Notwithstanding s. 227.24 (1) (c) and (2), initial emergency rules and subsequent emergency rules promulgated under this subsection remain in effect until the date on which permanent rules take effect. Notwithstanding s. 227.24 (1) (e) 1d. and 1g., for emergency rules promulgated under this subsection, the department is not required to prepare a statement of scope of the rules or to submit the proposed rules in final draft form to the governor for approval.