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AB393-ASA4,26,17 14(5) “Marijuana distributor” means a person in this state who purchases or
15receives usable marijuana from a marijuana processor and who sells or otherwise
16transfers the usable marijuana to a marijuana retailer or operator of a marijuana
17lounge for the purpose of resale to qualifying patients.
AB393-ASA4,26,20 18(5m) “Marijuana lounge” means a location for the retail sale of usable
19marijuana to qualifying patients for consumption, by those qualifying patients, on
20the premises.
AB393-ASA4,26,24 21(6) “Marijuana processor" means a person in this state who processes
22marijuana into usable marijuana, packages and labels usable marijuana for sale in
23retail outlets, and sells at wholesale or otherwise transfers usable marijuana to
24marijuana distributors.
AB393-ASA4,27,2
1(7) “Marijuana producer" means a person in this state who produces marijuana
2and sells it at wholesale or otherwise transfers it to marijuana processors.
AB393-ASA4,27,4 3(8) “Marijuana retailer" means a person in this state that sells usable
4marijuana at a retail outlet other than a marijuana lounge.
AB393-ASA4,27,7 5(9) “Microbusiness” means a marijuana producer that produces marijuana in
6one area that is less than 10,000 square feet and who also operates as any 2 of the
7following:
AB393-ASA4,27,88 (a) A marijuana processor.
AB393-ASA4,27,99 (b) A marijuana distributor.
AB393-ASA4,27,1010 (c) A marijuana retailer.
AB393-ASA4,27,13 11(10) “Permittee" means a marijuana producer, marijuana processor, marijuana
12distributor, marijuana retailer, microbusiness, or operator of a marijuana lounge
13that is issued a permit under s. 139.972.
AB393-ASA4,27,14 14(10m) “Qualifying patient" has the meaning given in s. 73.17 (1) (d).
AB393-ASA4,27,16 15(11) “Retail outlet" means a location for the retail sale of usable marijuana to
16qualifying patients.
AB393-ASA4,27,17 17(12) “Sales price" has the meaning given in s. 77.51 (15b).
AB393-ASA4,27,20 18(13) “Usable marijuana" means marijuana that has been processed for human
19consumption and includes dried marijuana flowers, marijuana-infused products,
20and marijuana edibles.
AB393-ASA4,27,25 21139.971 Marijuana tax. (1) An excise tax is imposed on a marijuana producer
22at the rate of 15 percent of the sales price on each wholesale sale or transfer in this
23state of marijuana to a marijuana processor. This paragraph applies to a
24microbusiness that transfers marijuana to a processing operation within the
25microbusiness.
AB393-ASA4,28,4
1(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
2to the department no later than the 15th day of the month following the month in
3which the person's tax liability is incurred and shall include with the payment a
4return on a form prescribed by the department.
AB393-ASA4,28,10 5(3) For purposes of this section, a marijuana producer may not sell marijuana
6directly to a marijuana distributor, marijuana retailer, or operator of a marijuana
7lounge, and a marijuana retailer or operator of a marijuana lounge may purchase
8usable marijuana for resale only from a marijuana distributor. This subsection does
9not apply to a microbusiness that transfers marijuana or usable marijuana to
10another operation with the microbusiness.
AB393-ASA4,28,17 11139.972 Permits required. (1) (a) No person may operate in this state as a
12marijuana producer, marijuana processor, marijuana distributor, marijuana
13retailer, microbusiness, or operator of a marijuana lounge without first filing an
14application for and obtaining the proper permit from the department to perform such
15operations. In addition, no person may operate in this state as a marijuana producer
16or marijuana processor without first filing an application for and obtaining the
17proper permit under s. 94.56.
AB393-ASA4,28,2018 (b) This section applies to all officers, directors, agents, and stockholders
19holding 5 percent or more of the stock of any corporation applying for a permit under
20this section.
AB393-ASA4,28,2221 (c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may
22not be granted to any person to whom any of the following applies:
AB393-ASA4,28,2423 1. The person has been convicted of a violent misdemeanor, as defined in s.
24941.29 (1g) (b), at least 3 times.
AB393-ASA4,29,2
12. The person has been convicted of a violent felony, as defined in s. 941.29 (1g)
2(a), unless pardoned.
AB393-ASA4,29,43 3. During the preceding 3 years, the person has been committed under s. 51.20
4for being drug dependent.
AB393-ASA4,29,95 4. The person chronically and habitually uses alcohol beverages or other
6substances to the extent that his or her normal faculties are impaired. A person is
7presumed to chronically and habitually use alcohol beverages or other substances to
8the extent that his or her normal faculties are impaired if, within the preceding 3
9years, any of the following applies:
AB393-ASA4,29,1110 a. The person has been committed for involuntary treatment under s. 51.45
11(13).
AB393-ASA4,29,1212 b. The person has been convicted of a violation of s. 941.20 (1) (b).
AB393-ASA4,29,2213 c. In 2 or more cases arising out of separate incidents, a court has found the
14person to have committed a violation of s. 346.63 or a local ordinance in conformity
15with that section; a violation of a law of a federally recognized American Indian tribe
16or band in this state in conformity with s. 346.63; or a violation of the law of another
17jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while
18intoxicated, while under the influence of a controlled substance, a controlled
19substance analog, or a combination thereof, with an excess or specified range of
20alcohol concentration, or while under the influence of any drug to a degree that
21renders the person incapable of safely driving, as those or substantially similar
22terms are used in that jurisdiction's laws.
AB393-ASA4,29,2423 5. The person has income that comes principally from gambling or has been
24convicted of 2 or more gambling offenses.
AB393-ASA4,29,2525 6. The person has been convicted of crimes relating to prostitution.
AB393-ASA4,30,2
17. The person has been convicted of of crimes relating to loaning money or
2anything of value to persons holding licenses or permits pursuant to ch. 125.
AB393-ASA4,30,33 8. The person is under the age of 21.
AB393-ASA4,30,54 9. The person has not been a resident of this state continuously for at least 90
5days prior to the application date.
AB393-ASA4,30,136 (cm) Notwithstanding ss. 66.0134 and 947.21, an applicant with 20 or more
7employees may not receive a permit under this section to operate as a marijuana
8distributor or marijuana retailer unless the applicant certifies to the department
9that the applicant has entered into a labor peace agreement, as defined in s. 94.56
10(1) (a), and will abide by the terms of the agreement as a condition of maintaining
11a valid permit under this section. The applicant shall submit to the department a
12copy of the page of the labor peace agreement that contains the signatures of the
13labor organization representative and the applicant.
AB393-ASA4,31,214 (cn) The department shall use a competitive scoring system to determine which
15applicants are eligible to receive a permit under this section. The department shall
16issue permits to the highest scoring applicants that it determines will best protect
17the environment; provide stable, family-supporting jobs to local residents; ensure
18worker and consumer safety; operate secure facilities; and uphold the laws of the
19jurisdictions in which they operate. The department shall, using criteria established
20by rule, score an applicant for a permit to operate as a marijuana retailer or as an
21operator of a marijuana lounge on the applicant's ability to articulate a social equity
22plan related to the operation of a marijuana retail establishment. The department
23may deny a permit to an applicant with a low score as determined under this
24paragraph. The department may request that the applicant provide any information

1or documentation that the department deems necessary for purposes of making a
2determination under this paragraph.
AB393-ASA4,31,63 (cs) A permit under this section for an operator of a marijuana lounge may
4authorize the operation of a marijuana lounge only in a municipality or county that
5has enacted an ordinance authorizing the establishment of marijuana lounges in the
6municipality or county.
AB393-ASA4,31,97 (ct) No marijuana retailer or operator of a marijuana lounge may hold a permit
8or license to sell alcohol, tobacco products, or cigarettes on the premises of the retail
9operation or lounge.
AB393-ASA4,31,1710 (d) 1. Before the department issues a new or renewed permit under this section,
11the department shall give notice of the permit application to the governing body of
12the municipality where the permit applicant intends to operate the premises of a
13marijuana producer, marijuana processor, marijuana distributor, marijuana
14retailer, microbusiness, or marijuana lounge. No later than 30 days after the
15department submits the notice, the governing body of the municipality may file with
16the department a written objection to granting or renewing the permit. At the
17municipality's request, the department may extend the period for filing objections.
AB393-ASA4,32,618 2. A written objection filed under subd. 1. shall provide all the facts on which
19the objection is based. In determining whether to grant or deny a permit for which
20an objection has been filed under this paragraph, the department shall give
21substantial weight to objections from a municipality based on chronic illegal activity
22associated with the premises for which the applicant seeks a permit or the premises
23of any other operation in this state for which the applicant holds or has held a valid
24permit or license, the conduct of the applicant's patrons inside or outside the
25premises of any other operation in this state for which the applicant holds or has held

1a valid permit or license, and local zoning ordinances. In this subdivision, “chronic
2illegal activity" means a pervasive pattern of activity that threatens the public
3health, safety, and welfare of the municipality, including any crime or ordinance
4violation, and that is documented in crime statistics, police reports, emergency
5medical response data, calls for service, field data, or similar law enforcement agency
6records.
AB393-ASA4,32,117 (e) After denying a permit, the department shall immediately notify the
8applicant in writing of the denial and the reasons for the denial. After making a
9decision to grant or deny a permit for which a municipality has filed an objection
10under par. (d), the department shall immediately notify the governing body of the
11municipality in writing of its decision and the reasons for the decision.
AB393-ASA4,32,1312 (f) 1. The department's denial of a permit under this section is subject to judicial
13review under ch. 227.
AB393-ASA4,32,1514 2. The department's decision to grant a permit under this section regardless of
15an objection filed under par. (d) is subject to judicial review under ch. 227.
AB393-ASA4,32,1716 (g) The department may not issue a permit under this section to any person who
17does not hold a valid certificate under s. 73.03 (50).
AB393-ASA4,32,24 18(2) Each person who applies for a permit under this section shall submit with
19the application a $250 fee. Each person who is granted a permit under this section
20shall annually pay to the department a $2,000 fee for as long as the person holds a
21valid permit under this section. A permit issued under this section is valid for one
22year and may be renewed, except that the department may revoke or suspend a
23permit prior to its expiration. A person is not entitled to a refund of the fees paid
24under this subsection if the person's permit is denied, revoked, or suspended.
AB393-ASA4,33,4
1(3) The department may not issue a permit under this section to operate any
2premises which are within 500 feet of the perimeter of the grounds of any elementary
3or secondary school, playground, recreation facility, child care facility, public park,
4public transit facility, or library.
AB393-ASA4,33,19 5(4) Under this section, a separate permit is required for and issued to each class
6of permittee, and the permit holder may perform only the operations authorized by
7the permit. A permit issued under this section is not transferable from one person
8to another or from one premises to another. A separate permit is required for each
9place in this state where the operations of a marijuana producer, marijuana
10processor, marijuana distributor, marijuana retailer, operator of a marijuana lounge,
11or microbusiness occur, including each retail outlet. No person who has been issued
12a permit to operate as a marijuana retailer or operator of a marijuana lounge, or who
13has any direct or indirect financial interest in the operation of a marijuana retailer
14or operator of a marijuana lounge, shall be issued a permit to operate as a marijuana
15producer, marijuana processor, or marijuana distributor. A person who has been
16issued a permit to operate as a microbusiness is not required to hold separate permits
17to operate as a marijuana processor, marijuana distributor, or marijuana retailer,
18but shall specify on the person's application for a microbusiness permit the activities
19that the person will be engaged in as a microbusiness.
AB393-ASA4,33,21 20(5) Each person issued a permit under this section shall post the permit in a
21conspicuous place on the premises to which the permit relates.
AB393-ASA4,33,23 22139.973 Regulation. (1) (a) No permittee may employ an individual who is
23under the age of 21 to work in the business to which the permit relates.
AB393-ASA4,34,3
1(b) Subject to ss. 111.321, 111.322, and 111.335, no permittee may employ an
2individual if any of the conditions under s. 139.972 (1) (c) 1. to 7. applies to the
3individual.
AB393-ASA4,34,6 4(2) A retail outlet other than a marijuana lounge shall sell no products or
5services other than usable marijuana or paraphernalia intended for the storage or
6use of usable marijuana.
AB393-ASA4,34,11 7(3) No marijuana retailer or operator of a marijuana lounge may allow a person
8who is under the age of 21 to enter or be on the premises of a retail outlet in violation
9of s. 961.71 (2m), unless that person is a qualifying patient, as defined in s. 73.17 (1)
10(d), who is accompanied by his or her parent, guardian, or spouse who has attained
11the legal age.
AB393-ASA4,34,13 12(4) The maximum amount of usable marijuana that a retail outlet may sell to
13an individual qualifying patient in a single transaction may not exceed 5 ounces.
AB393-ASA4,34,16 14(4m) A marijuana retailer or operator of a marijuana lounge may not collect,
15retain, or distribute personal information regarding the retailer's or operator's
16customers except that which is necessary to complete a sale of usable marijuana.
AB393-ASA4,34,20 17(5) No marijuana retailer may display any signage in a window, on a door, or
18on the outside of the premises of a retail outlet that is visible to the general public
19from a public right-of-way, other than a single sign that is no larger than 1,600
20square inches identifying the retail outlet by the permittee's business or trade name.
AB393-ASA4,34,23 21(6) No marijuana retailer or operator of a marijuana lounge may display usable
22marijuana in a manner that is visible to the general public from a public
23right-of-way.
AB393-ASA4,34,25 24(7) No marijuana retailer or employee of a retail outlet may consume, or allow
25to be consumed, any usable marijuana on the premises of the retail outlet.
AB393-ASA4,35,2
1(7m) A marijuana retailer or operator of a marijuana lounge may operate a
2retail outlet only between the hours of 8 a.m. and 8 p.m.
AB393-ASA4,35,6 3(8) Except as provided under sub. (5), no marijuana producer, marijuana
4processor, marijuana distributor, marijuana retailer, operator of a marijuana lounge,
5or microbusiness may place or maintain, or cause to be placed or maintained, an
6advertisement of usable marijuana in any form or through any medium.
AB393-ASA4,35,15 7(9) (a) On a schedule determined by the department, every marijuana
8producer, marijuana processor, or microbusiness shall submit representative
9samples of the marijuana and usable marijuana produced or processed by the
10marijuana producer, marijuana processor, or microbusiness to a testing laboratory
11registered under s. 94.57 for testing marijuana and usable marijuana in order to
12certify that the marijuana and usable marijuana comply with standards prescribed
13by the department by rule, including testing for potency and for mold, fungus,
14pesticides, and other contaminants. The laboratory testing the sample shall destroy
15any part of the sample that remains after the testing.
AB393-ASA4,35,1816 (b) Marijuana producers, marijuana processors, and microbusinesses shall
17submit the results of the testing provided under par. (a) to the department in the
18manner prescribed by the department by rule.
AB393-ASA4,35,2319 (c) If a representative sample tested under par. (a) does not meet the standards
20prescribed by the department, the department shall take the necessary action to
21ensure that the entire lot from which the sample was taken is destroyed. The
22department shall promulgate rules to determine lots and lot numbers for purposes
23of this subsection and for the reporting of lots and lot numbers to the department.
AB393-ASA4,36,2 24(10) (a) A marijuana processor or a microbusiness that operates as a marijuana
25processor shall affix a label to all usable marijuana that the marijuana processor or

1microbusiness sells to marijuana distributors. The label may not be designed to
2appeal to persons under the age of 18. The label shall include all of the following:
AB393-ASA4,36,43 1. The ingredients and the tetrahydrocannabinols concentration in the usable
4marijuana.
AB393-ASA4,36,55 2. The producer's business or trade name.
AB393-ASA4,36,66 3. The producer's permit number.
AB393-ASA4,36,77 4. The harvest batch number of the marijuana.
AB393-ASA4,36,88 5. The harvest date.
AB393-ASA4,36,99 6. The strain name and product identity.
AB393-ASA4,36,1010 7. The net weight.
AB393-ASA4,36,1111 8. The activation time.
AB393-ASA4,36,1312 9. The name of laboratory performing any test, the test batch number, and the
13test analysis dates.
AB393-ASA4,36,1514 11. Warnings about the risks of marijuana use and pregnancy and risks of
15marijuana use by persons under the age of 18.
AB393-ASA4,36,1916 (b) No marijuana processor or microbusiness that operates as a marijuana
17processor may make usable marijuana using marijuana grown outside this state.
18The label on each package of usable marijuana may indicate that the usable
19marijuana is made in this state.
AB393-ASA4,36,21 20(11) (a) No permittee may sell marijuana or usable marijuana that contains
21more than 3 parts tetrahydrocannabinols to one part cannabidiol.
AB393-ASA4,36,2522 (b) No permittee may sell marijuana or usable marijuana that tests positive
23under sub. (9) (a) for mold, fungus, pesticides, or other contaminants if the
24contaminants, or level of contaminants, are identified by a testing laboratory to be
25potentially unsafe to the consumer.
AB393-ASA4,37,4
1(12) Immediately after beginning employment with a permittee, every
2employee of a permittee shall receive training, approved by the department, on the
3safe handling of marijuana and usable marijuana and on security and inventory
4accountability procedures.
AB393-ASA4,37,6 5(13) The department shall deposit 60 percent of all moneys received under this
6subchapter into the community reinvestment fund.
AB393-ASA4,37,13 7139.974 Records and reports. (1) Every permittee shall keep accurate and
8complete records of the production and sales of marijuana and usable marijuana in
9this state. The records shall be kept on the premises described in the permit and in
10such manner as to ensure permanency and accessibility for inspection at reasonable
11hours by the department's authorized personnel. The department shall prescribe
12reasonable and uniform methods of keeping records and making reports and shall
13provide the necessary forms to permittees.
AB393-ASA4,37,23 14(2) If the department determines that any permittee's records are not kept in
15the prescribed form or are in such condition that the department requires an unusual
16amount of time to determine from the records the amount of the tax due, the
17department shall give notice to the permittee that the permittee is required to revise
18the permittee's records and keep them in the prescribed form. If the permittee fails
19to comply within 30 days, the permittee shall pay the expenses reasonably
20attributable to a proper examination and tax determination at the rate of $30 a day
21for each auditor used to make the examination and determination. The department
22shall send a bill for such expenses, and the permittee shall pay the amount of such
23bill within 10 days.
AB393-ASA4,38,8 24(3) If any permittee fails to file a report when due, the permittee shall be
25required to pay a late filing fee of $10. A report that is mailed is filed on time if it is

1mailed in a properly addressed envelope with postage prepaid, the envelope is
2officially postmarked, or marked or recorded electronically as provided under section
37502 (f) (2) (c) of the Internal Revenue Code, on the date due, and the report is
4actually received by the department or at the destination that the department
5prescribes within 5 days of the due date. A report that is not mailed is timely if it
6is received on or before the due date by the department or at the destination that the
7department prescribes. For purposes of this subsection, “mailed" includes delivery
8by a delivery service designated under section 7502 (f) of the Internal Revenue Code.
AB393-ASA4,38,13 9(4) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating
10to confidentiality of income, franchise, and gift tax returns, apply to any information
11obtained from any permittee under this subchapter on a tax return, report, schedule,
12exhibit, or other document or from an audit report relating to any of those documents,
13except that the department shall publish production and sales statistics.
AB393-ASA4,38,16 14139.975 Administration and enforcement. (1) The department shall
15administer and enforce this subchapter and promulgate rules necessary to
16administer and enforce this subchapter.
AB393-ASA4,38,18 17(2) The duly authorized employees of the department have all necessary police
18powers to prevent violations of this subchapter.
AB393-ASA4,38,25 19(3) Authorized personnel of the department of justice and the department of
20revenue, and any law enforcement officer, within their respective jurisdictions, may
21at all reasonable hours enter the premises of any permittee and examine the books
22and records to determine whether the tax imposed by this subchapter has been fully
23paid and may enter and inspect any premises where marijuana or usable marijuana
24is produced, processed, made, sold, or stored to determine whether the permittee is
25complying with this subchapter.
AB393-ASA4,39,4
1(4) The department may suspend or revoke the permit of any permittee who
2violates s. 100.30, any provision of this subchapter, or any rules promulgated under
3sub. (1). The department shall revoke the permit of any permittee who violates s.
4100.30 3 or more times within a 5-year period.
AB393-ASA4,39,12 5(5) No suit shall be maintained in any court to restrain or delay the collection
6or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax
7when due and, if paid under protest, may at any time within 90 days from the date
8of payment sue the state to recover the tax paid. If it is finally determined that any
9part of the tax was wrongfully collected, the secretary of administration shall pay the
10amount wrongfully collected. A separate suit need not be filed for each separate
11payment made by any taxpayer, but a recovery may be had in one suit for as many
12payments as may have been made.
AB393-ASA4,39,18 13(6) (a) Any person may be compelled to testify in regard to any violation of this
14subchapter of which the person may have knowledge, even though such testimony
15may tend to incriminate the person, upon being granted immunity from prosecution
16in connection with the testimony, and upon the giving of such testimony, the person
17shall not be prosecuted because of the violation relative to which the person has
18testified.
AB393-ASA4,39,2019 (b) The immunity provided under par. (a) is subject to the restrictions under
20s. 972.085.
AB393-ASA4,39,22 21(7) The provisions on timely filing under s. 71.80 (18) apply to the tax imposed
22under this subchapter.
AB393-ASA4,40,3 23(8) Sections 71.74 (1), (2), (10), (11), and (14), 71.77, 71.91 (1) (a) and (c) and
24(2) to (7), 71.92, and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes
25under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes

1under ch. 71 applies to the collection of the taxes under this subchapter, except that
2the period during which notice of an additional assessment shall be given begins on
3the due date of the report under this subchapter.
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