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SB1034,20 10Section 20 . Subchapter IV of chapter 139 [precedes 139.97] of the statutes is
11created to read:
SB1034,29,1212 chapter 139
SB1034,29,1313 subchapter Iv
SB1034,29,1414 medical marijuana tax
SB1034,29,15 15139.97 Definitions. In this subchapter:
SB1034,29,16 16(1) “Commission” means the medical marijuana regulatory commission.
SB1034,29,17 17(2) “Department” means the department of revenue.
SB1034,29,18 18(3) “Dispensary” has the meaning given in s. 73.17 (1) (c).
SB1034,29,19 19(4) “Marijuana" has the meaning given in s. 961.01 (14).
SB1034,29,20 20(5) “Medical marijuana" has the meaning given in s. 73.18 (1) (e).
SB1034,29,21 21(6) “Processor" has the meaning given in s. 73.17 (1) (h).
SB1034,29,22 22(7) “Producer” has the meaning given in s. 73.17 (1) (i).
SB1034,29,25 23139.971 Medical marijuana tax. (1) An excise tax is imposed on a processor
24at the rate of 10 percent of the sales price on each wholesale sale in this state of
25medical marijuana to a dispensary.
SB1034,30,5
1(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
2to the commission 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 commission. The commission shall deposit all
5taxes collected under this section into the medical marijuana fund.
SB1034,30,19 6(3) The commission may increase or decrease the rate under sub. (1) by
7submitting a request to the joint committee on finance. A request made under this
8subsection may not propose to increase or decrease the rate by more than a 5 percent
9increment. In addition to the proposed rate, the commission shall include in its
10request its rationale for the proposed rate, the impact that the proposed rate may
11have on the regulation of medical marijuana, and the first date on which the
12proposed rate would apply. If the cochairpersons of the joint committee on finance
13do not notify the commission that the committee has scheduled a meeting for the
14purpose of reviewing the request within 30 working days after the date of the
15submission, the commission may implement the proposal. If within 30 working days
16after the date of the submission, the cochairpersons of the committee notify the
17commission that the committee has scheduled a meeting for the purpose of reviewing
18the request, the commission may implement the proposal only upon approval of the
19committee.
SB1034,31,2 20139.972 Records and reports. (1) Every producer and processor shall keep
21accurate and complete records of its production and sales of marijuana and medical
22marijuana in this state. The records shall be kept on the premises described in its
23license application under s. 73.17 and in such manner as to ensure permanency and
24accessibility for inspection at reasonable hours by the authorized personnel of the
25commission or department. The commission shall prescribe reasonable and uniform

1methods of keeping records and making reports and shall provide the necessary
2forms to producers and processors.
SB1034,31,12 3(2) If the commission determines that any records of a producer or processor
4are not kept in the prescribed form or are in such condition that the commission
5requires an unusual amount of time to determine from the records the amount of the
6tax due, the commission shall give notice to the producer or processor that it is
7required to revise its records and keep them in the prescribed form. If the producer
8or processor fails to comply within 30 days, it shall pay the expenses reasonably
9attributable to a proper examination and tax determination at the rate of $30 per day
10for each auditor used to make the examination and determination. The commission
11shall send a bill for such expenses, and the producer or processor shall pay the
12amount of such bill within 10 days.
SB1034,31,22 13(3) If any producer or processor fails to file a report when due, it shall be
14required to pay a late filing fee of $10. A report that is mailed is filed on time if it is
15mailed in a properly addressed envelope with postage prepaid, the envelope is
16officially postmarked, or marked or recorded electronically as provided under section
177502 (f) (2) (C) of the Internal Revenue Code, on the date due, and the report is
18actually received by the commission or at the destination that the commission
19prescribes within 5 days of the due date. A report that is not mailed is timely if it
20is received on or before the due date by the commission or at the destination that the
21commission prescribes. For purposes of this subsection, “mailed" includes delivery
22by a delivery service designated under section 7502 (f) of the Internal Revenue Code.
SB1034,32,3 23(4) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating
24to confidentiality of income, franchise, and gift tax returns, apply to any information
25obtained from any producer or processor under this subchapter on a tax return,

1report, schedule, exhibit, or other document or from an audit report relating to any
2of those documents, except that the commission shall publish production and sales
3statistics.
SB1034,32,6 4139.973 Administration and enforcement. (1) The commission, in
5consultation with the department, shall administer and enforce this subchapter and
6promulgate rules necessary to administer and enforce this subchapter.
SB1034,32,8 7(2) The duly authorized employees of the commission and the department have
8all necessary police powers to prevent violations of this subchapter.
SB1034,32,15 9(3) Authorized personnel of the commission, the department of justice, and the
10department of revenue, and any law enforcement officer, within their respective
11jurisdictions, may at all reasonable hours enter the premises of any producer or
12processor and examine the books and records to determine whether the tax imposed
13by this subchapter has been fully paid and may enter and inspect any premises
14where marijuana or medical marijuana is produced, processed, made, sold, or stored
15to determine whether the producer or processor is complying with this subchapter.
SB1034,32,19 16(4) The commission may suspend or revoke the license of any producer or
17processor who violates s. 100.30, any provision of this subchapter, or any rules
18promulgated under sub. (1). The commission shall revoke the permit of any producer
19or processor who violates s. 100.30 3 or more times within a 5-year period.
SB1034,33,2 20(5) No suit shall be maintained in any court to restrain or delay the collection
21or payment of the tax levied in s. 139.971. The aggrieved taxpayer shall pay the tax
22when due and, if paid under protest, may at any time within 90 days from the date
23of payment sue the state to recover the tax paid. If it is finally determined that any
24part of the tax was wrongfully collected, the secretary of administration shall pay the
25amount wrongfully collected out of the medical marijuana fund. A separate suit need

1not be filed for each separate payment made by any taxpayer, but a recovery may be
2had in one suit for as many payments as may have been made.
SB1034,33,8 3(6) (a) Any person may be compelled to testify in regard to any violation of this
4subchapter of which the person may have knowledge, even though such testimony
5may tend to incriminate the person, upon being granted immunity from prosecution
6in connection with such testimony. Upon the giving of the testimony under this
7paragraph, the person shall not be prosecuted because of the violation relative to
8which the person has testified.
SB1034,33,109 (b) The immunity provided under par. (a) is subject to the restrictions under
10s. 972.085.
SB1034,33,12 11(7) The provisions on timely filing under s. 71.80 (18) apply to the tax imposed
12under this subchapter.
SB1034,33,18 13(8) Sections 71.74 (1), (2), (10), (11), and (14), 71.77, 71.91 (1) (a) and (c) and
14(2) to (7), 71.92, and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes
15under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes
16under ch. 71 applies to the collection of the taxes under this subchapter, except that
17the period during which notice of an additional assessment shall be given begins on
18the due date of the report under this subchapter.
SB1034,33,22 19(9) Any building or place of any kind where marijuana or medical marijuana
20is sold, possessed, stored, or manufactured without a valid license under s. 73.17 or
21in violation of s. 139.972 is declared a public nuisance and may be closed and abated
22as such.
SB1034,33,25 23(10) At the request of the commission chairperson or the secretary of revenue,
24the attorney general may represent this state or assist a district attorney in
25prosecuting any case arising under this subchapter.
SB1034,34,8
1139.974 Theft of tax moneys. All medical marijuana tax moneys received by
2a producer or processor for the sale of marijuana or medical marijuana on which the
3tax under this subchapter has become due and has not been paid are trust funds in
4the possession of the producer or processor and are the property of this state. Any
5producer or processor who fraudulently withholds, appropriates, or otherwise uses
6medical marijuana tax moneys that are the property of this state is guilty of theft
7under s. 943.20 (1), whether or not the producer or processor has or claims to have
8an interest in those moneys.
SB1034,34,15 9139.975 Seizure and confiscation. (1) All marijuana and medical
10marijuana produced, processed, made, kept, stored, sold, distributed, or transported
11in violation of this subchapter or s. 73.17 or 73.18 and all tangible personal property
12used in connection with the marijuana or medical marijuana is unlawful property
13and subject to seizure by the commission or a law enforcement officer. Except as
14provided in sub. (2), all marijuana and medical marijuana seized under this
15subsection shall be destroyed.
SB1034,34,24 16(2) If marijuana or medical marijuana on which the tax has not been paid is
17seized as provided under sub. (1), it may be given to law enforcement officers to use
18in criminal investigations or sold to qualified buyers by the commission without
19notice. If the marijuana or medical marijuana is sold, after deducting the costs of
20selling and storing the property, the commission shall pay the sale proceeds into the
21medical marijuana fund. If the commission finds that the marijuana or medical
22marijuana may deteriorate or become unfit for use in criminal investigations or for
23sale, or that those uses would otherwise be impractical, the commission may order
24them destroyed.
SB1034,35,7
1(3) If marijuana or medical marijuana on which the tax has been paid is seized
2as provided under sub. (1), it shall be returned to the true owner if ownership can be
3ascertained and the owner or the owner's agent is not involved in the violation
4resulting in the seizure. If the ownership cannot be ascertained or if the owner or
5the owner's agent was guilty of the violation that resulted in the seizure of the
6marijuana or medical marijuana, it may be sold or otherwise disposed of as provided
7in sub. (2).
SB1034,36,3 8(4) If tangible personal property other than marijuana or medical marijuana
9is seized as provided under sub. (1), the commission shall advertise the tangible
10personal property for sale by publication of a class 2 notice under ch. 985. If no person
11claiming a lien on, or ownership of, the property has notified the commission of the
12person's claim within 10 days after last insertion of the notice, the commission shall
13sell the property. If a sale is not practical, the commission may destroy the property.
14If a person claiming a lien on, or ownership of, the property notifies the commission
15within the time prescribed in this subsection, the commission may apply to the
16circuit court in the county where the property was seized for an order directing
17disposition of the property or the proceeds from the sale of the property. If the court
18orders the property to be sold, all liens, if any, may be transferred from the property
19to the sale proceeds. Neither the property seized nor the proceeds from the sale shall
20be turned over to any claimant of lien or ownership unless the claimant first
21establishes that the property was not used in connection with any violation under
22this subchapter or s. 73.17 or 73.18 or that, if so used, it was done without the
23claimant's knowledge or consent and without the claimant's knowledge of facts that
24should have given the claimant reason to believe it would be put to such use. If no
25claim of lien or ownership is established as provided under this subsection, the

1property may be ordered destroyed. In case of a sale, the net proceeds after deducting
2costs, expenses, and established claims shall be paid into the medical marijuana
3fund.
SB1034,36,8 4139.976 Interest and penalties. (1) Any person who makes or signs any
5false or fraudulent report under this subchapter, who attempts to evade the tax
6imposed under this subchapter, or who aids in or abets the evasion or attempted
7evasion of that tax may be fined not more than $10,000 or imprisoned not more than
89 months or both.
SB1034,36,11 9(2) Any producer or processor who fails to keep the records required under this
10subchapter shall be fined not less than $100 nor more than $500 or imprisoned not
11more than 6 months or both.
SB1034,36,16 12(3) Any person who refuses to permit the examination or inspection authorized
13under s. 139.973 (3) may be fined not more than $500 or imprisoned not more than
146 months or both. The commission shall immediately suspend or revoke the license
15of any person who refuses to permit the examination or inspection authorized under
16s. 139.973 (3).
SB1034,36,19 17(4) Any person who violates any of the provisions of this subchapter for which
18no other penalty is prescribed shall be fined not less than $100 nor more than $1,000
19or imprisoned not less than 10 days nor more than 90 days or both.
SB1034,36,22 20(5) Any person who violates any of the rules promulgated in accordance with
21this subchapter shall be fined not less than $100 nor more than $500 or imprisoned
22not more than 6 months or both.
SB1034,37,2 23(6) In addition to the penalties imposed for violating the provisions of this
24subchapter or any of the commission's rules, the commission shall automatically

1revoke the license of any person convicted of such a violation and not issue another
2license to that person for a period of 2 years following the revocation.
SB1034,37,7 3(7) Unpaid taxes under this subchapter bear interest at the rate of 12 percent
4per year from the due date of the return until paid or deposited with the commission,
5and all refunded taxes under this subchapter bear interest at the rate of 3 percent
6per year from the due date of the return to the date on which the refund is certified
7on the refund rolls.
SB1034,37,9 8(8) All nondelinquent payments of additional amounts owed under this
9subchapter shall be applied in the following order: penalties, interest, tax principal.
SB1034,37,12 10(9) Delinquent medical marijuana taxes bear interest at the rate of 1.5 percent
11per month until paid. The taxes imposed by this subchapter shall become delinquent
12if not paid by the following:
SB1034,37,1413 (a) In the case of a timely filed return, no return filed, or a late return, on or
14before the due date of the return.
SB1034,37,1615 (b) In the case of a deficiency determination of taxes, within 2 months after the
16date of demand.
SB1034,37,20 17(10) If due to neglect an incorrect return is filed under this subchapter, the
18entire tax finally determined is subject to a penalty of 25 percent of the tax exclusive
19of interest or other penalty. A person filing an incorrect return has the burden of
20proving that the error or errors were due to good cause and not due to neglect.
SB1034,21 21Section 21 . 182.001 (3) of the statutes is amended to read:
SB1034,38,222 182.001 (3) Prohibited activities. Those farming operations prohibited under
23this section are the production of dairy products not including the processing of such
24dairy products; the production of cattle, hogs, and sheep; and the production of

1wheat, field corn, barley, oats, rye, hay, pasture, soybeans, millet, sorghum, and
2hemp, and marijuana and medical marijuana as provided under ss. 73.17 and 73.18.
SB1034,22 3Section 22 . 440.035 (2m) (a) of the statutes is renumbered 440.035 (2m) (a)
4(intro.) and amended to read:
SB1034,38,55 440.035 (2m) (a) (intro.) In this subsection, “ controlled:
SB1034,38,6 61. “Controlled substance" has the meaning given in s. 961.01 (4).
SB1034,23 7Section 23 . 440.035 (2m) (a) 2. of the statutes is created to read:
SB1034,38,98 440.035 (2m) (a) 2. “Medical marijuana” has the meaning given in s. 73.18 (1)
9(e).
SB1034,24 10Section 24 . 440.035 (2m) (b) of the statutes is renumbered 440.035 (2m) (b)
111.
SB1034,25 12Section 25 . 440.035 (2m) (b) 2. of the statutes is created to read:
SB1034,38,1613 440.035 (2m) (b) 2. The medical examining board and the board of nursing may
14issue guidelines regarding best practices in making recommendations for the use of
15medical marijuana under s. 73.18 (2) for persons credentialed by that board who are
16authorized to recommend the use of medical marijuana.
SB1034,26 17Section 26 . 441.07 (1g) (d) 3. of the statutes is created to read:
SB1034,38,1918 441.07 (1g) (d) 3. Recommending the use of medical marijuana to treat a
19patient in accordance with s. 73.18 (2).
SB1034,27 20Section 27 . 441.20 of the statutes is created to read:
SB1034,38,22 21441.20 Recommendations for use of medical marijuana. (1) In this
22section, “medical marijuana” has the meaning given in s. 73.18 (1) (e).
SB1034,39,2 23(2) A certified advanced practice nurse prescriber who, acting in good faith,
24recommends the use of medical marijuana to treat a patient in accordance with s.
2573.18 (2) shall be immune from criminal or civil liability and may not be subject to

1professional discipline under s. 441.07 for any outcomes resulting from that
2recommendation.
SB1034,28 3Section 28 . 448.015 (4) (bm) 3. of the statutes is created to read:
SB1034,39,54 448.015 (4) (bm) 3. Recommending the use of medical marijuana, as defined
5in s. 73.18 (1) (e), to treat a patient in accordance with s. 73.18 (2).
SB1034,29 6Section 29 . 448.039 of the statutes is created to read:
SB1034,39,8 7448.039 Recommendations for use of medical marijuana. (1) In this
8section, “medical marijuana” has the meaning given in s. 73.18 (1) (e).
SB1034,39,12 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) shall
11be immune from criminal or civil liability and may not be subject to professional
12discipline under s. 448.02 for any outcomes resulting from that recommendation.
SB1034,30 13Section 30 . 450.03 (1) (em) of the statutes is created to read:
SB1034,39,1514 450.03 (1) (em) Any person acting within the scope of a valid medical marijuana
15producer, processor, or dispensary license under s. 73.17.
SB1034,31 16Section 31 . 450.07 (1m) of the statutes is renumbered 450.07 (1m) (a).
SB1034,32 17Section 32 . 450.07 (1m) (b) of the statutes is created to read:
SB1034,39,2018 450.07 (1m) (b) No license under this section is required for a person acting
19within the scope of a valid medical marijuana producer, processor, or dispensary
20license under s. 73.17.
SB1034,33 21Section 33 . 450.071 (1) of the statutes is renumbered 450.071 (1) (a) and
22amended to read:
SB1034,39,2523 450.071 (1) (a) No Except as provided in par. (b), no person may engage in the
24wholesale distribution of a prescription drug in this state without obtaining a license
25from the board for each facility from which the person distributes prescription drugs.
SB1034,40,5
1(b) 1. The board shall exempt from the licensure requirement under this section
2a manufacturer that distributes prescription drugs or devices manufactured by the
3manufacturer from licensing and other requirements under this section to the extent
4the license or requirement is not required under federal law or regulation, unless the
5board determines that it is necessary to apply a requirement to a manufacturer.
SB1034,34 6Section 34 . 450.071 (1) (b) 2. of the statutes is created to read:
SB1034,40,97 450.071 (1) (b) 2. No license under this section is required for a person acting
8within the scope of a valid medical marijuana producer, processor, or dispensary
9license under s. 73.17.
SB1034,35 10Section 35 . 961.01 (12q) of the statutes is created to read:
SB1034,40,1211 961.01 (12q) “Licensed entity” means a producer, processor, dispensary,
12transporter, or laboratory licensed under s. 73.17.
SB1034,36 13Section 36 . 961.01 (14g) of the statutes is created to read:
SB1034,40,1414 961.01 (14g) “Medical marijuana" has the meaning given in s. 73.18 (1) (e).
SB1034,37 15Section 37 . 961.01 (19m) of the statutes is created to read:
SB1034,40,1816 961.01 (19m) “Primary caregiver" means a person who is registered under s.
1773.18 to help a qualifying patient in his or her use or acquisition of medical
18marijuana.
SB1034,38 19Section 38 . 961.01 (20hm) of the statutes is created to read:
SB1034,40,2220 961.01 (20hm) “Qualifying patient" means a person who holds a
21recommendation and registry identification card for the use of medical marijuana
22under s. 73.18.
SB1034,39 23Section 39 . 961.01 (20ht) of the statutes is created to read:
SB1034,40,2524 961.01 (20ht) “Registry identification card" has the meaning given in s. 73.18
25(1) (L).
SB1034,40
1Section 40. 961.01 (20t) of the statutes is created to read:
SB1034,41,32 961.01 (20t) “Treatment team" means a qualifying patient and his or her
3primary caregivers.
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