SB486: Bill Text

SB486,,115 (3) Fees; term. (a) Each person who applies for a permit under this section shall submit with the application a $250 fee. A permit issued under this section is valid for one year and may be renewed, except that the department may revoke or suspend a permit prior to its expiration. A person is not entitled to a refund of the fees paid under this subsection if the person’s permit is denied, revoked, or suspended.

SB486,,116 (b) A permittee shall annually pay to the department a fee for as long as the person holds a valid permit under this section. The annual fee for a marijuana processor permittee is $2,000. The annual fee for a marijuana producer permittee is one of the following, unless the department, by rule, establishes a higher amount:

SB486,,117 1. If the permittee plants, grows, cultivates, or harvests not more than 1,800 marijuana plants, $1,800.

SB486,,118 2. If the permittee plants, grows, cultivates, or harvests more than 1,800 but not more than 3,600 marijuana plants, $2,900.

SB486,,119 3. If the permittee plants, grows, cultivates, or harvests more than 3,600 but not more than 6,000 marijuana plants, $3,600.

SB486,,120 4. If the permittee plants, grows, cultivates, or harvests more than 6,000 but not more than 10,200 marijuana plants, $5,100.

SB486,,121 5. If the permittee plants, grows, cultivates, or harvests more than 10,200 marijuana plants, $7,100 plus $800 for every 3,600 marijuana plants over 10,200.

SB486,,122 (4) Schools. The department may not issue a permit under this section to operate any premises that are within 500 feet of the perimeter of the grounds of any elementary or secondary school, playground, recreation facility, child care facility, public park, public transit facility, or library.

SB486,,123 (5) Education and awareness campaign. The department shall develop and make available training programs for marijuana producers on how to safely and efficiently plant, grow, cultivate, harvest, and otherwise handle marijuana, and for marijuana processors on how to safely and efficiently produce and handle marijuana products and test marijuana for contaminants. The department shall conduct an awareness campaign to inform potential marijuana producers and marijuana processors of the availability and viability of marijuana as a crop or product in this state.

SB486,,124 (6) Rules. The department shall promulgate rules necessary to administer and enforce this section, including rules relating to the inspection of the plants, facilities, and products of permittees; training requirements for employees of permittees; and the competitive scoring system for determining which applicants are eligible to receive a permit under this section.

SB486,,125 (7) Penalties. (a) Unless another penalty is prescribed for the violation, any person who violates sub. (2), fails to pay the required fee under sub. (3), or violates any of the requirements established by the rules promulgated under sub. (6) shall be fined not less than $100 nor more than $500 or imprisoned not more than 6 months or both.

SB486,,126 (b) In addition to the penalties imposed under par. (a), the department shall revoke the permit of any person convicted of any violation described under par. (a) and not issue another permit to that person for a period of 2 years following the revocation. The department may suspend or revoke the permit of any permittee who violates s. 100.30, any provision of this section, or any rules promulgated under sub. (6). The department shall revoke the permit of any permittee who violates s. 100.30 3 or more times within a 5-year period.

SB486,25 Section 25. 94.57 of the statutes is created to read:

SB486,,128 94.57 Testing laboratories. The department shall register entities as tetrahydrocannabinols testing laboratories. The laboratories may possess or manufacture tetrahydrocannabinols or drug paraphernalia and shall perform the following services:

SB486,,129 (1) Test marijuana produced for the medical use of tetrahydrocannabinols for potency and for mold, fungus, pesticides, and other contaminants.

SB486,,130 (2) Collect information on research findings and conduct research related to the medical use of tetrahydrocannabinols, including research that identifies potentially unsafe levels of contaminants.

SB486,,131 (3) Provide training on the following:

SB486,,132 (a) The safe and efficient cultivation, harvesting, packaging, labeling, and distribution of marijuana for the medical use of tetrahydrocannabinols.

SB486,,133 (b) Security and inventory accountability procedures.

SB486,,134 (c) The most recent research on the use of tetrahydrocannabinols.

SB486,26 Section 26. 100.145 of the statutes is created to read:

SB486,,136 100.145 Recreational marijuana logotype. The department shall design an official logotype appropriate for including on a label affixed to recreational marijuana under s. 139.973 (10) (a).

SB486,27 Section 27. 108.02 (18r) of the statutes is created to read:

SB486,,138 108.02 (18r) Marijuana. “Marijuana” has the meaning given in s. 111.32 (11m).

SB486,28 Section 28. 108.04 (5m) of the statutes is created to read:

SB486,,140 108.04 (5m) Discharge for use of marijuana. (a) Notwithstanding sub. (5), “misconduct,” for purposes of sub. (5), does not include the employee’s use of marijuana off the employer’s premises during nonworking hours or a violation of the employer’s policy concerning such use, unless termination of the employee because of that use is permitted under s. 111.35.

SB486,,141 (b) Notwithstanding sub. (5g), “substantial fault,” for purposes of sub. (5g), does not include the employee’s use of marijuana off the employer’s premises during nonworking hours or a violation of the employer’s policy concerning such use, unless termination of the employee because of that use is permitted under s. 111.35.

SB486,29 Section 29. 111.32 (9m) of the statutes is created to read:

SB486,,143 111.32 (9m) “Lawful product” includes marijuana.

SB486,30 Section 30. 111.32 (11m) of the statutes is created to read:

SB486,,145 111.32 (11m) “Marijuana” means all parts of the plants of the genus Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, including tetrahydrocannabinols.

SB486,31 Section 31. 111.35 (2) (e) of the statutes is amended to read:

SB486,,147 111.35 (2) (e) Conflicts with any federal or state statute, rule or regulation. This paragraph does not apply with respect to violations concerning marijuana or tetrahydrocannabinols under 21 USC 841 to 865.

SB486,32 Section 32. 114.09 (2) (bm) 1. (intro.) of the statutes is amended to read:

SB486,,149 114.09 (2) (bm) 1. (intro.) Except as provided in subd. 1. a. or b., the court shall order the person violating sub. (1) (b) 1. or 1m. to submit to and comply with an assessment by an approved public treatment facility as defined in s. 51.45 (2) (c) for examination of the person’s use of alcohol, tetrahydrocannabinols, controlled substances, or controlled substance analogs and development of an airman safety plan for the person. The court shall notify the person, the department, and the proper federal agency of the assessment order. The assessment order shall:

SB486,33 Section 33. 114.09 (2) (bm) 4. of the statutes is amended to read:

SB486,,151 114.09 (2) (bm) 4. The assessment report shall order compliance with an airman safety plan. The report shall inform the person of the fee provisions under s. 46.03 (18) (f). The safety plan may include a component that makes the person aware of the effect of his or her offense on a victim and a victim’s family. The safety plan may include treatment for the person’s misuse, abuse, or dependence on alcohol, tetrahydrocannabinols, controlled substances, or controlled substance analogs. If the plan requires inpatient treatment, the treatment shall not exceed 30 days. An airman safety plan under this paragraph shall include a termination date consistent with the plan that shall not extend beyond one year. The county department under s. 51.42 shall assure notification of the department of transportation and the person of the person’s compliance or noncompliance with assessment and treatment.

SB486,34 Section 34. 115.35 (1) of the statutes is renumbered 115.35 (1) (a) (intro.) and amended to read:

SB486,,153 115.35 (1) (a) (intro.) A critical health problems education program is established in the department. The program shall be a systematic and integrated program designed to provide appropriate learning experiences based on scientific knowledge of the human organism as it functions within its environment and designed to favorably influence the health, understanding, attitudes and practices of the individual child which will enable him or her to adapt to changing health problems of our society. The program shall be designed to educate youth with regard to critical health problems and shall include, but not be limited to, the following topics as the basis for comprehensive education curricula in all elementary and secondary schools: controlled

SB486,,154 1. Controlled substances, as defined in s. 961.01 (4); controlled substance analogs, as defined in s. 961.01 (4m); alcohol; and tobacco; mental.

SB486,,155 2. Mental health; sexually.

SB486,,156 3. Sexually transmitted diseases, including acquired immunodeficiency syndrome; human.

SB486,,157 4. Human growth and development; and.

SB486,,158 5. Other related health and safety topics as determined by the department.

SB486,,159 (b) Participation in the human growth and development topic of the curricula described in par. (a) shall be entirely voluntary. The department may not require a school board to use a specific human growth and development curriculum.

SB486,35 Section 35. Subchapter IV of chapter 139 [precedes 139.97] of the statutes is created to read:

SB486,,161 CHAPTER 139

SB486,,162 SUBCHAPTER IV

SB486,,163 MARIJUANA TAX AND REGULATION

SB486,,164 139.97 Definitions. In this subchapter:

SB486,,165 (1) “Department” means the department of revenue.

SB486,,166 (2) “Lot” means a definite quantity of marijuana or usable marijuana identified by a lot number, every portion or package of which is consistent with the factors that appear in the labeling.

SB486,,167 (3) “Lot number” means a number that specifies the person who holds a valid permit under this subchapter and the harvesting or processing date for each lot.

SB486,,168 (4) “Marijuana” has the meaning given in s. 961.70 (2).

SB486,,169 (5) “Marijuana distributor” means a person in this state who purchases or receives usable marijuana from a marijuana processor and who sells or otherwise transfers the usable marijuana to a marijuana retailer or operator of a marijuana lounge for the purpose of resale to consumers.

SB486,,170 (5m) “Marijuana lounge” means a location for the retail sale of usable marijuana for consumption on the premises.

SB486,,171 (6) “Marijuana processor” means a person in this state who processes marijuana into usable marijuana, packages and labels usable marijuana for sale in retail outlets, and sells at wholesale or otherwise transfers usable marijuana to marijuana distributors.

SB486,,172 (7) “Marijuana producer” means a person in this state who produces marijuana and sells it at wholesale or otherwise transfers it to marijuana processors.

SB486,,173 (8) “Marijuana retailer” means a person in this state that sells usable marijuana at a retail outlet other than a marijuana lounge.

SB486,,174 (9) “Microbusiness” means a marijuana producer that produces marijuana in one area that is less than 10,000 square feet and who also operates as any 2 of the following:

SB486,,175 (a) A marijuana processor.

SB486,,176 (b) A marijuana distributor.

SB486,,177 (c) A marijuana retailer.

SB486,,178 (10) “Permittee” means a marijuana producer, marijuana processor, marijuana distributor, marijuana retailer, microbusiness, or operator of a marijuana lounge that is issued a permit under s. 139.972.

SB486,,179 (11) “Retail outlet” means a location for the retail sale of usable marijuana.

SB486,,180 (12) “Sales price” has the meaning given in s. 77.51 (15b).

SB486,,181 (13) “Usable marijuana” means marijuana that has been processed for human consumption and includes dried marijuana flowers, marijuana-infused products, and marijuana edibles.

SB486,,182 139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana producer at the rate of 15 percent of the sales price on each wholesale sale or transfer in this state of marijuana to a marijuana processor. This paragraph applies to a microbusiness that transfers marijuana to a processing operation within the microbusiness.

SB486,,183 (b) An excise tax is imposed on a marijuana retailer or operator of a marijuana lounge at the rate of 10 percent of the sales price on each retail sale in this state of usable marijuana, except that the tax does not apply to sales of usable marijuana to an individual who holds a valid tax exemption certificate issued under s. 73.17 (4).

SB486,,184 (2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes to the department no later than the 15th day of the month following the month in which the person’s tax liability is incurred and shall include with the payment a return on a form prescribed by the department.

SB486,,185 (3) For purposes of this section, a marijuana producer may not sell marijuana directly to a marijuana distributor, marijuana retailer, or operator of a marijuana lounge, and a marijuana retailer or operator of a marijuana lounge may purchase usable marijuana for resale only from a marijuana distributor. This subsection does not apply to a microbusiness that transfers marijuana or usable marijuana to another operation with the microbusiness.

SB486,,186 139.972 Permits required. (1) (a) No person may operate in this state as a marijuana producer, marijuana processor, marijuana distributor, marijuana retailer, microbusiness, or operator of a marijuana lounge without first filing an application for and obtaining the proper permit from the department to perform such operations. In addition, no person may operate in this state as a marijuana producer or marijuana processor without first filing an application for and obtaining the proper permit under s. 94.56.

SB486,,187 (b) This section applies to all officers, directors, agents, and stockholders holding 5 percent or more of the stock of any corporation applying for a permit under this section.

SB486,,188 (c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may not be granted to any person to whom any of the following applies:

SB486,,189 1. The person has been convicted of a violent misdemeanor, as defined in s. 941.29 (1g) (b), at least 3 times.

SB486,,190 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g) (a), unless pardoned.

SB486,,191 3. During the preceding 3 years, the person has been committed under s. 51.20 for being drug dependent.

SB486,,192 4. The person chronically and habitually uses alcohol beverages or other substances to the extent that his or her normal faculties are impaired. A person is presumed to chronically and habitually use alcohol beverages or other substances to the extent that his or her normal faculties are impaired if, within the preceding 3 years, any of the following applies:

SB486,,193 a. The person has been committed for involuntary treatment under s. 51.45 (13).

SB486,,194 b. The person has been convicted of a violation of s. 941.20 (1) (b).

SB486,,195 c. In 2 or more cases arising out of separate incidents, a court has found the person to have committed a violation of s. 346.63 or a local ordinance in conformity with that section; a violation of a law of a federally recognized American Indian tribe or band in this state in conformity with s. 346.63; or a violation of the law of another jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while intoxicated, while under the influence of a controlled substance, a controlled substance analog, or a combination thereof, with an excess or specified range of alcohol concentration, or while under the influence of any drug to a degree that renders the person incapable of safely driving, as those or substantially similar terms are used in that jurisdiction’s laws.

SB486,,196 5. The person has income that comes principally from gambling or has been convicted of 2 or more gambling offenses.

SB486,,197 6. The person has been convicted of crimes relating to prostitution.

SB486,,198 7. The person has been convicted of of crimes relating to loaning money or anything of value to persons holding licenses or permits pursuant to ch. 125.

SB486,,199 8. The person is under the age of 21.

SB486,,200 9. The person has not been a resident of this state continuously for at least 90 days prior to the application date.

SB486,,201 (cm) Notwithstanding ss. 66.0134 and 947.21, an applicant with 20 or more employees may not receive a permit under this section to operate as a marijuana distributor or marijuana retailer unless the applicant certifies to the department that the applicant has entered into a labor peace agreement, as defined in s. 94.56 (1) (a), and will abide by the terms of the agreement as a condition of maintaining a valid permit under this section. The applicant shall submit to the department a copy of the page of the labor peace agreement that contains the signatures of the labor organization representative and the applicant.

SB486,,202 (cn) The department shall use a competitive scoring system to determine which applicants are eligible to receive a permit under this section. The department shall issue permits to the highest scoring applicants that it determines will best protect the environment; provide stable, family-supporting jobs to local residents; ensure worker and consumer safety; operate secure facilities; and uphold the laws of the jurisdictions in which they operate. The department shall, using criteria established by rule, score an applicant for a permit to operate as a marijuana retailer or as an operator of a marijuana lounge on the applicant’s ability to articulate a social equity plan related to the operation of a marijuana retail establishment. The department may deny a permit to an applicant with a low score as determined under this paragraph. The department may request that the applicant provide any information or documentation that the department deems necessary for purposes of making a determination under this paragraph.

SB486,,203 (cs) A permit under this section for an operator of a marijuana lounge may authorize the operation of a marijuana lounge only in a municipality or county that has enacted an ordinance authorizing the establishment of marijuana lounges in the municipality or county.