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AB750,29,1717 medical marijuana tax
AB750,29,18 18139.97 Definitions. In this subchapter:
AB750,29,19 19(1) “Commission” means the medical marijuana regulatory commission.
AB750,29,20 20(2) “Department” means the department of revenue.
AB750,29,21 21(3) “Dispensary” has the meaning given in s. 73.17 (1) (c).
AB750,29,22 22(4) “Marijuana" has the meaning given in s. 961.01 (14).
AB750,29,23 23(5) “Medical marijuana" has the meaning given in s. 73.18 (1) (e).
AB750,29,24 24(6) “Processor" has the meaning given in s. 73.17 (1) (h).
AB750,29,25 25(7) “Producer” has the meaning given in s. 73.17 (1) (i).
AB750,30,3
1139.971 Medical marijuana tax. (1) An excise tax is imposed on a processor
2at the rate of 10 percent of the sales price on each wholesale sale in this state of
3marijuana to a dispensary.
AB750,30,8 4(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
5to the commission no later than the 15th day of the month following the month in
6which the person's tax liability is incurred and shall include with the payment a
7return on a form prescribed by the commission. The commission shall deposit all
8taxes collected under this section into the medical marijuana fund.
AB750,30,22 9(3) The commission may increase or decrease the rate under sub. (1) by
10submitting a request to the joint committee on finance. A request made under this
11subsection may not propose to increase or decrease the rate by more than a 5-percent
12increment. In addition to the proposed rate, the commission shall include in its
13request its rationale for the proposed rate, the impact that the proposed rate may
14have on the regulation of medical marijuana, and the first date on which the
15proposed rate would apply. If the cochairpersons of the joint committee on finance
16do not notify the commission that the committee has scheduled a meeting for the
17purpose of reviewing the request within 30 working days after the date of the
18submission, the commission may implement the proposal. If within 30 working days
19after the date of the submission, the cochairpersons of the committee notify the
20commission that the committee has scheduled a meeting for the purpose of reviewing
21the request, the commission may implement the proposal only upon approval of the
22committee.
AB750,31,5 23139.972 Records and reports. (1) Every producer and processor shall keep
24accurate and complete records of its production and sales of marijuana and medical
25marijuana in this state. The records shall be kept on the premises described in its

1license application under s. 73.17 and in such manner as to ensure permanency and
2accessibility for inspection at reasonable hours by the authorized personnel of the
3commission or department. The commission shall prescribe reasonable and uniform
4methods of keeping records and making reports and shall provide the necessary
5forms to producers and processors.
AB750,31,15 6(2) If the commission determines that any records of a producer or processor
7are not kept in the prescribed form or are in such condition that the commission
8requires an unusual amount of time to determine from the records the amount of the
9tax due, the commission shall give notice to the producer or processor that it is
10required to revise its records and keep them in the prescribed form. If the producer
11or processor fails to comply within 30 days, it shall pay the expenses reasonably
12attributable to a proper examination and tax determination at the rate of $30 a day
13for each auditor used to make the examination and determination. The commission
14shall send a bill for such expenses, and the producer or processor shall pay the
15amount of such bill within 10 days.
AB750,31,25 16(3) If any producer or processor fails to file a report when due, it shall be
17required to pay a late filing fee of $10. A report that is mailed is filed on time if it is
18mailed in a properly addressed envelope with postage prepaid, the envelope is
19officially postmarked, or marked or recorded electronically as provided under section
207502 (f) (2) (c) of the Internal Revenue Code, on the date due, and the report is
21actually received by the commission or at the destination that the commission
22prescribes within 5 days of the due date. A report that is not mailed is timely if it
23is received on or before the due date by the commission or at the destination that the
24commission prescribes. For purposes of this subsection, “mailed" includes delivery
25by a delivery service designated under section 7502 (f) of the Internal Revenue Code.
AB750,32,6
1(4) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating
2to confidentiality of income, franchise, and gift tax returns, apply to any information
3obtained from any producer or processor under this subchapter on a tax return,
4report, schedule, exhibit, or other document or from an audit report relating to any
5of those documents, except that the commission shall publish production and sales
6statistics.
AB750,32,9 7139.973 Administration and enforcement. (1) The commission, in
8consultation with the department, shall administer and enforce this subchapter and
9promulgate rules necessary to administer and enforce this subchapter.
AB750,32,11 10(2) The duly authorized employees of the commission and the department have
11all necessary police powers to prevent violations of this subchapter.
AB750,32,18 12(3) Authorized personnel of the commission, the department of justice, and the
13department of revenue, and any law enforcement officer, within their respective
14jurisdictions, may at all reasonable hours enter the premises of any producer or
15processor and examine the books and records to determine whether the tax imposed
16by this subchapter has been fully paid and may enter and inspect any premises
17where marijuana or medical marijuana is produced, processed, made, sold, or stored
18to determine whether the producer or processor is complying with this subchapter.
AB750,32,22 19(4) The commission may suspend or revoke the license of any producer or
20processor who violates s. 100.30, any provision of this subchapter, or any rules
21promulgated under sub. (1). The commission shall revoke the permit of any producer
22or processor who violates s. 100.30 3 or more times within a 5-year period.
AB750,33,5 23(5) No suit shall be maintained in any court to restrain or delay the collection
24or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax
25when due and, if paid under protest, may at any time within 90 days from the date

1of payment sue the state to recover the tax paid. If it is finally determined that any
2part of the tax was wrongfully collected, the secretary of administration shall pay the
3amount wrongfully collected out of the medical marijuana fund. A separate suit need
4not be filed for each separate payment made by any taxpayer, but a recovery may be
5had in one suit for as many payments as may have been made.
AB750,33,11 6(6) (a) Any person may be compelled to testify in regard to any violation of this
7subchapter of which the person may have knowledge, even though such testimony
8may tend to incriminate the person, upon being granted immunity from prosecution
9in connection with the testimony, and upon the giving of such testimony, the person
10shall not be prosecuted because of the violation relative to which the person has
11testified.
AB750,33,1312 (b) The immunity provided under par. (a) is subject to the restrictions under
13s. 972.085.
AB750,33,15 14(7) The provisions on timely filing under s. 71.80 (18) apply to the tax imposed
15under this subchapter.
AB750,33,21 16(8) Sections 71.74 (1), (2), (10), (11), and (14), 71.77, 71.91 (1) (a) and (c) and
17(2) to (7), 71.92, and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes
18under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes
19under ch. 71 applies to the collection of the taxes under this subchapter, except that
20the period during which notice of an additional assessment shall be given begins on
21the due date of the report under this subchapter.
AB750,33,25 22(9) Any building or place of any kind where marijuana or medical marijuana
23is sold, possessed, stored, or manufactured without a valid license under s. 73.17 or
24in violation of s. 139.972 is declared a public nuisance and may be closed and abated
25as such.
AB750,34,3
1(10) At the request of the commission chairperson or the secretary of revenue,
2the attorney general may represent this state or assist a district attorney in
3prosecuting any case arising under this subchapter.
AB750,34,11 4139.974 Theft of tax moneys. All medical marijuana tax moneys received by
5a producer or processor for the sale of marijuana or medical marijuana on which the
6tax under this subchapter has become due and has not been paid are trust funds in
7the possession of the producer or processor and are the property of this state. Any
8producer or processor who fraudulently withholds, appropriates, or otherwise uses
9medical marijuana tax moneys that are the property of this state is guilty of theft
10under s. 943.20 (1), whether or not the producer or processor has or claims to have
11an interest in those moneys.
AB750,34,18 12139.975 Seizure and confiscation. (1) All marijuana and medical
13marijuana produced, processed, made, kept, stored, sold, distributed, or transported
14in violation of this subchapter or s. 73.17 or 73.18, and all tangible personal property
15used in connection with the marijuana or medical marijuana is unlawful property
16and subject to seizure by the commission or a law enforcement officer. Except as
17provided in sub. (2), all marijuana and medical marijuana seized under this
18subsection shall be destroyed.
AB750,35,2 19(2) If marijuana or medical marijuana on which the tax has not been paid is
20seized as provided under sub. (1), it may be given to law enforcement officers to use
21in criminal investigations or sold to qualified buyers by the commission, without
22notice. If the marijuana or medical marijuana is sold, after deducting the costs of
23selling and storing the property, the commission shall pay the sale proceeds into the
24medical marijuana fund. If the commission finds that the marijuana or medical
25marijuana may deteriorate or become unfit for use in criminal investigations or for

1sale, or that those uses would otherwise be impractical, the commission may order
2them destroyed.
AB750,35,9 3(3) If marijuana or medical marijuana on which the tax has been paid is seized
4as provided under sub. (1), it shall be returned to the true owner if ownership can be
5ascertained and the owner or the owner's agent is not involved in the violation
6resulting in the seizure. If the ownership cannot be ascertained or if the owner or
7the owner's agent was guilty of the violation that resulted in the seizure of the
8marijuana or medical marijuana, it may be sold or otherwise disposed of as provided
9in sub. (2).
AB750,36,5 10(4) If tangible personal property other than marijuana or medical marijuana
11is seized as provided under sub. (1), the commission shall advertise the tangible
12personal property for sale by publication of a class 2 notice under ch. 985. If no person
13claiming a lien on, or ownership of, the property has notified the commission of the
14person's claim within 10 days after last insertion of the notice, the commission shall
15sell the property. If a sale is not practical, the commission may destroy the property.
16If a person claiming a lien on, or ownership of, the property notifies the commission
17within the time prescribed in this subsection, the commission may apply to the
18circuit court in the county where the property was seized for an order directing
19disposition of the property or the proceeds from the sale of the property. If the court
20orders the property to be sold, all liens, if any, may be transferred from the property
21to the sale proceeds. Neither the property seized nor the proceeds from the sale shall
22be turned over to any claimant of lien or ownership unless the claimant first
23establishes that the property was not used in connection with any violation under
24this subchapter or s. 73.17 or 73.18 or that, if so used, it was done without the
25claimant's knowledge or consent and without the claimant's knowledge of facts that

1should have given the claimant reason to believe it would be put to such use. If no
2claim of lien or ownership is established as provided under this subsection, the
3property may be ordered destroyed. In case of a sale, the net proceeds after deducting
4costs, expenses, and established claims shall be paid into the medical marijuana
5fund.
AB750,36,10 6139.976 Interest and penalties. (1) Any person who makes or signs any
7false or fraudulent report under this subchapter or who attempts to evade the tax
8imposed under this subchapter, or who aids in or abets the evasion or attempted
9evasion of that tax, may be fined not more than $10,000 or imprisoned for not more
10than 9 months or both.
AB750,36,13 11(2) Any producer or processor who fails to keep the records required under this
12subchapter shall be fined not less than $100 nor more than $500 or imprisoned not
13more than 6 months or both.
AB750,36,18 14(3) Any person who refuses to permit the examination or inspection authorized
15under s. 139.973 (3) may be fined not more than $500 or imprisoned not more than
166 months or both. The commission shall immediately suspend or revoke the license
17of any person who refuses to permit the examination or inspection authorized under
18s. 139.973 (3).
AB750,36,21 19(4) Any person who violates any of the provisions of this subchapter for which
20no other penalty is prescribed shall be fined not less than $100 nor more than $1,000
21or imprisoned not less than 10 days nor more than 90 days or both.
AB750,36,24 22(5) Any person who violates any of the rules promulgated in accordance with
23this subchapter shall be fined not less than $100 nor more than $500 or imprisoned
24not more than 6 months or both.
AB750,37,4
1(6) In addition to the penalties imposed for violating the provisions of this
2subchapter or any of the commission's rules, the commission shall automatically
3revoke the license of any person convicted of such a violation and not issue another
4license to that person for a period of 2 years following the revocation.
AB750,37,8 5(7) Unpaid taxes bear interest at the rate of 12 percent per year from the due
6date of the return until paid or deposited with the commission, and all refunded taxes
7bear interest at the rate of 3 percent per year from the due date of the return to the
8date on which the refund is certified on the refund rolls.
AB750,37,10 9(8) All nondelinquent payments of additional amounts owed shall be applied
10in the following order: penalties, interest, tax principal.
AB750,37,13 11(9) Delinquent medical marijuana taxes bear interest at the rate of 1.5 percent
12per month until paid. The taxes imposed by this subchapter shall become delinquent
13if not paid by the following:
AB750,37,1514 (a) In the case of a timely filed return, no return filed, or a late return, on or
15before the due date of the return.
AB750,37,1716 (b) In the case of a deficiency determination of taxes, within 2 months after the
17date of demand.
AB750,37,21 18(10) If due to neglect an incorrect return is filed, the entire tax finally
19determined is subject to a penalty of 25 percent of the tax exclusive of interest or
20other penalty. A person filing an incorrect return has the burden of proving that the
21error or errors were due to good cause and not due to neglect.
AB750,21 22Section 21 . 182.001 (3) of the statutes, as affected by 2019 Wisconsin Act 68,
23is amended to read:
AB750,38,324 182.001 (3) Prohibited activities. Those farming operations prohibited under
25this section are the production of dairy products not including the processing of such

1dairy products; the production of cattle, hogs and sheep; and the production of wheat,
2field corn, barley, oats, rye, hay, pasture, soybeans, millet, sorghum, and hemp, and
3marijuana and medical marijuana as provided under ss. 73.17 and 73.18
.
AB750,22 4Section 22 . 440.035 (2m) (a) of the statutes is renumbered 440.035 (2m) (a)
5(intro.) and amended to read:
AB750,38,66 440.035 (2m) (a) (intro.) In this subsection, “ controlled:
AB750,38,7 71. “Controlled substance" has the meaning given in s. 961.01 (4).
AB750,23 8Section 23 . 440.035 (2m) (a) 2. of the statutes is created to read:
AB750,38,109 440.035 (2m) (a) 2. “Medical marijuana” has the meaning given in s. 73.18 (1)
10(e).
AB750,24 11Section 24 . 440.035 (2m) (b) of the statutes is renumbered 440.035 (2m) (b)
121.
AB750,25 13Section 25 . 440.035 (2m) (b) 2. of the statutes is created to read:
AB750,38,1714 440.035 (2m) (b) 2. The medical examining board and the board of nursing may
15issue guidelines regarding best practices in making recommendations for the use of
16medical marijuana under s. 73.18 (2) for persons credentialed by that board who are
17authorized to recommend the use of medical marijuana.
AB750,26 18Section 26 . 441.07 (1g) (d) 3. of the statutes is created to read:
AB750,38,2019 441.07 (1g) (d) 3. Recommending the use of medical marijuana to treat a
20patient in accordance with s. 73.18 (2).
AB750,27 21Section 27 . 441.20 of the statutes is created to read:
AB750,38,23 22441.20 Recommendations for use of medical marijuana. (1) In this
23section, “medical marijuana” has the meaning given in s. 73.18 (1) (e).
AB750,39,2 24(2) An advanced practice nurse who, acting in good faith, recommends the use
25of medical marijuana to treat a patient in accordance with s. 73.18 (2) and (3) (c) 2.

1shall be immune from criminal or civil liability and may not be subject to professional
2discipline under s. 441.07 for any outcomes resulting from that recommendation.
AB750,28 3Section 28 . 448.015 (4) (bm) 3. of the statutes is created to read:
AB750,39,54 448.015 (4) (bm) 3. Recommending the use of medical marijuana to treat a
5patient in accordance with s. 73.18 (2).
AB750,29 6Section 29 . 448.039 of the statutes is created to read:
AB750,39,8 7448.039 Recommendations for use of medical marijuana. (1) In this
8section, “medical marijuana” has the meaning given in s. 73.18 (1) (e).
AB750,39,13 9(2) A physician or physician assistant who, acting in good faith, recommends
10the use of medical marijuana to treat a patient in accordance with s. 73.18 (2) and
11(3) (c) 2. shall be immune from criminal or civil liability and may not be subject to
12professional discipline under s. 448.02 for any outcomes resulting from that
13recommendation.
AB750,30 14Section 30 . 450.03 (1) (em) of the statutes is created to read:
AB750,39,1615 450.03 (1) (em) Any person acting within the scope of a valid medical marijuana
16producer, processor, or dispensary license under s. 73.17.
AB750,31 17Section 31 . 450.07 (1m) of the statutes, as created by 2019 Wisconsin Act 68,
18is renumbered 450.07 (1m) (a).
AB750,32 19Section 32 . 450.07 (1m) (b) of the statutes is created to read:
AB750,39,2220 450.07 (1m) (b) No license under this section is required for a person acting
21within the scope of a valid medical marijuana producer, processor, or dispensary
22license under s. 73.17.
AB750,33 23Section 33 . 450.071 (1) of the statutes is renumbered 450.071 (1) (a) and
24amended to read:
AB750,40,3
1450.071 (1) (a) No Except as provided in par. (b), no person may engage in the
2wholesale distribution of a prescription drug in this state without obtaining a license
3from the board for each facility from which the person distributes prescription drugs.
AB750,40,8 4(b) 1. The board shall exempt from the licensure requirement under this section
5a manufacturer that distributes prescription drugs or devices manufactured by the
6manufacturer from licensing and other requirements under this section to the extent
7the license or requirement is not required under federal law or regulation, unless the
8board determines that it is necessary to apply a requirement to a manufacturer.
AB750,34 9Section 34 . 450.071 (1) (b) 2. of the statutes is created to read:
AB750,40,1210 450.071 (1) (b) 2. No license under this section is required for a person acting
11within the scope of a valid medical marijuana producer, processor, or dispensary
12license under s. 73.17.
AB750,35 13Section 35 . 961.01 (12q) of the statutes is created to read:
AB750,40,1514 961.01 (12q) “Licensed entity” means a producer, processor, dispensary,
15transporter, or laboratory licensed under s. 73.17.
AB750,36 16Section 36 . 961.01 (14g) of the statutes is created to read:
AB750,40,1717 961.01 (14g) “Medical marijuana" has the meaning given under s. 73.18 (1) (e).
AB750,37 18Section 37 . 961.01 (19m) of the statutes is created to read:
AB750,40,2119 961.01 (19m) “Primary caregiver" means a person who is registered under s.
2073.18 to help a qualifying patient in his or her use or acquisition of medical
21marijuana.
AB750,38 22Section 38 . 961.01 (20hm) of the statutes is created to read:
AB750,40,2523 961.01 (20hm) “Qualifying patient" means a person who holds a
24recommendation and registry identification card for the use of medical marijuana
25under s. 73.18.
AB750,39
1Section 39. 961.01 (20ht) of the statutes is created to read:
AB750,41,32 961.01 (20ht) “Registry identification card" has the meaning given in s. 73.18
3(1) (L).
AB750,40 4Section 40 . 961.01 (20t) of the statutes is created to read:
AB750,41,65 961.01 (20t) “Treatment team" means a qualifying patient and his or her
6primary caregivers.
AB750,41 7Section 41 . 961.33 of the statutes is created to read:
AB750,41,12 8961.33 Medical marijuana. (1) Possession, distribution, and delivery by
9treatment team; authorization.
A member of a qualifying patient's treatment team
10may possess medical marijuana or distribute, deliver, or possess with intent to
11distribute medical marijuana to another member of the same qualifying patient's
12treatment team if all of the following apply:
AB750,41,1513 (a) The possession, distribution, or delivery of medical marijuana is done to
14facilitate a qualifying patient's use of medical marijuana in accordance with his or
15her recommendation.
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