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SB1035,16 3Section 16 . 77.54 (70) of the statutes is created to read:
SB1035,10,64 77.54 (70) The sales price from the sales of and the storage, use, or other
5consumption of medical cannabis and drug paraphernalia delivered or distributed
6by a dispensary licensed under s. 94.57.
SB1035,17 7Section 17 . 94.57 of the statutes is created to read:
SB1035,10,8 894.57 Medical cannabis. (1) Definitions. In this section:
SB1035,10,139 (b) “Dispensary” means a person who obtains packaged and labeled medical
10cannabis from a licensed processor and dispenses that cannabis, and cannabis
11paraphernalia, at a permanent location to a member of a treatment team holding a
12valid registry identification card, regardless of whether the dispensing is done in
13exchange for monetary consideration.
SB1035,10,1614 (c) “Laboratory” means a person who obtains medical cannabis from a licensed
15processor and tests that cannabis for tetrahydrocannabinol content and the presence
16of molds, pesticides, heavy metals, and other contaminants.
SB1035,10,1817 (d) “Licensee” means a producer, processor, or dispensary that holds a valid
18license under this section.
SB1035,10,1919 (e) “Maximum authorized amount" has the meaning given in s. 961.01 (14c).
SB1035,10,2220 (f) “Medical cannabis" means a cannabis plant or usable cannabis that is
21intended to be used by a qualifying patient registered under s. 146.44 to alleviate the
22symptoms or effects of the patient's debilitating medical condition or treatment.
SB1035,11,223 (g) “Processor" means a person who obtains medical cannabis from a licensed
24producer, processes the medical cannabis into usable cannabis or individual
25cannabis plants, packages and labels the usable cannabis or cannabis plants, and

1transfers or sells the packaged and labeled usable cannabis or cannabis plants to a
2licensed dispensary.
SB1035,11,53 (h) “Producer” means a person who plants, grows, cultivates, or harvests more
4than 12 cannabis plants for medical cannabis and transfers or sells the medical
5cannabis to a licensed processor.
SB1035,11,66 (i) “Qualifying patient" has the meaning given in s. 146.44 (1) (e).
SB1035,11,77 (j) “Registry identification card" has the meaning given in s. 146.44 (1) (g).
SB1035,11,88 (k) “School” has the meaning given in s. 118.257 (1) (d).
SB1035,11,99 (L) “Treatment team" has the meaning given in s. 961.01 (20t).
SB1035,11,1010 (m) “Usable cannabis” has the meaning given in s. 961.01 (21f).
SB1035,11,19 11(2) License required. No person may operate in this state as a producer,
12processor, or dispensary without a license issued by the department under this
13section. A person who engages in more than one of these activities shall obtain a
14separate license for each activity. A licensee may engage in the licensed activity at
15more than one location without obtaining a separate license. No licensee may
16operate at more than 2 separate locations, regardless of the number of licenses held.
17A person who is an employee of a licensee is not required to obtain a separate license.
18A person is not required to obtain a license under this section if the person handles
19only industrial hemp and holds a valid license under s. 94.55.
SB1035,11,22 20(3) License criteria. (a) The department may issue a license under this section
21to an applicant only if the applicant has been a resident of this state for at least the
222 years immediately preceding the date of application.
SB1035,11,2423 (b) The department may not issue a license to, and must revoke a license of, any
24entity to which any of the following applies:
SB1035,11,2525 1. The entity is located within 500 feet of a school, including a charter school.
SB1035,12,4
12. If the entity is a dispensary, the dispensary distributes to a member of a
2treatment team a number of cannabis plants or an amount of usable cannabis that,
3in the period of distribution, results in the treatment team possessing more than the
4maximum authorized amount.
SB1035,12,85 3. The dispensary possesses a number of cannabis plants or an amount of
6usable cannabis that exceeds the combined maximum authorized amount for all of
7the treatment teams that use the dispensary by a number or an amount determined
8by the department by rule to be unacceptable.
SB1035,12,109 4. The applicant, or a principal officer or board member of the applicant, has
10a financial interest in a registered laboratory.
SB1035,12,13 11(4) Licensing procedure; fees; license term. (a) An application for a license
12under this section shall be in writing on a form provided by the department and
13include the licensing application fee under par. (b) 1.
SB1035,12,1514 (b) 1. A licensing application fee shall be an amount determined by the
15department but not less than $250.
SB1035,12,1716 2. The annual fee for a licensee shall be an amount determined by the
17department but not less than $5,000.
SB1035,12,1918 (c) A license is valid unless revoked. Each license shall be issued only for the
19applicant named in the application and may not be transferred or assigned.
SB1035,12,24 20(5) Producers. (a) A licensed producer may plant, grow, cultivate, and harvest
21medical cannabis, including planting, growing, cultivating, and harvesting
22outdoors; transfer or sell the medical cannabis to a licensed processor; and engage
23in any related activities that are necessary for the operation, such as possessing,
24storing, and transporting the medical cannabis.
SB1035,13,2
1(b) A licensed producer may not plant, grow, cultivate, or harvest medical
2cannabis for personal, family, or household use.
SB1035,13,10 3(6) Processors. (a) A licensed processor may obtain medical cannabis from a
4licensed producer; process the medical cannabis into usable cannabis or individual
5cannabis plants; transfer samples of the usable cannabis or individual cannabis
6plants to a registered laboratory; package and label the usable cannabis or individual
7cannabis plants; transfer or sell the usable cannabis or individual cannabis plants
8to a licensed dispensary; and engage in any related activities that are necessary for
9the operation, such as possessing, storing, and transporting the usable cannabis or
10individual cannabis plants.
SB1035,13,1711 (b) Before distributing medical cannabis to a licensed dispensary, a licensed
12processor shall provide samples of each type of cannabis plant and usable cannabis
13that it processes to a registered laboratory to test for mold, fungus, pesticides, and
14other contaminants and may not distribute medical cannabis that tests positive for
15mold, fungus, pesticides, or other contaminants if the contaminants or the level of
16contaminants is identified by the laboratory as being potentially unsafe to an
17individual's health.
SB1035,13,22 18(7) Dispensaries. (a) A licensed dispensary may obtain packaged, labeled
19medical cannabis from a licensed processor; dispense the medical cannabis according
20to the provisions of this section; and engage in any related activities that are
21necessary for the operation, such as possessing, storing, and transporting the
22medical cannabis.
SB1035,13,2423 (b) A licensed dispensary may dispense medical cannabis only to a person who
24presents a valid registry identification card.
SB1035,14,2
1(c) The department shall determine which and how many applicants for a
2dispensary license receive a license on the basis of all of the following:
SB1035,14,33 1. Convenience to treatment teams and the preferences of treatment teams.
SB1035,14,54 2. The ability of the applicant to provide to treatment teams a sufficient amount
5of medical cannabis.
SB1035,14,76 3. The experience the applicant has running a nonprofit organization or a
7business.
SB1035,14,98 4. The preferences of the governing bodies with jurisdiction over the area in
9which the applicants are located.
SB1035,14,1110 5. The ability of the applicant to keep records confidential and maintain a safe
11and secure facility.
SB1035,14,1212 6. The ability of the applicant to abide by the prohibitions under sub. (3) (b).
SB1035,14,21 13(8) Laboratories. The department shall register entities as medical cannabis
14testing laboratories. The department may not register a laboratory if any principal
15officer or board member of the entity has any financial interest in a licensee or an
16applicant for a license under this section. A registered laboratory may obtain
17samples of medical cannabis from a licensed processor; test and certify the
18tetrahydrocannabinol content of the medical cannabis and whether the medical
19cannabis contains any contaminants; and engage in any related activities that are
20necessary for the operation, such as possessing, storing, and transporting the
21medical cannabis. Registered laboratories shall perform the following services:
SB1035,14,2322 (a) Testing medical cannabis for potency and for mold, fungus, pesticides, and
23other contaminants.
SB1035,14,2524 (b) Researching findings related to medical cannabis, including findings that
25identify potentially unsafe levels of contaminants.
SB1035,15,2
1(c) Providing training to persons who hold registry identification cards,
2treatment teams, and persons employed by licensees on all of the following:
SB1035,15,43 1. The safe and efficient cultivation, harvesting, packaging, labeling, and
4distribution of medical cannabis.
SB1035,15,55 2. Security and inventory accountability procedures.
SB1035,15,66 3. The most recent research on medical cannabis.
SB1035,15,10 7(9) Confidentiality. The department may disclose to a law enforcement
8agency only information necessary to verify that a licensee has a valid license issued
9under this section, an entity is complying with rules promulgated under sub. (11), or
10a laboratory is registered under sub. (8).
SB1035,15,13 11(10) Inspections. The department may inspect, without prior notice, the
12premises of an applicant, licensee, or registered laboratory and any records required
13to be retained by a licensee or registered laboratory.
SB1035,15,17 14(11) Rules. (a) The department shall promulgate rules to administer and
15enforce this section. Rules promulgated under this subsection shall be designed to
16promote and prioritize producers, processors, and dispensaries that are small, local
17organizations.
SB1035,16,518 (b) When promulgating rules under this subsection, the department may, as
19necessary, use the procedure under s. 227.24 to promulgate emergency rules.
20Notwithstanding s. 227.24 (1) (a) and (3), when promulgating emergency rules under
21this subsection, the department is not required to provide evidence that
22promulgating a rule under this subsection as an emergency rule is necessary for the
23preservation of the public peace, health, safety, or welfare and is not required to
24provide a finding of emergency for a rule promulgated under this subsection.
25Notwithstanding s. 227.24 (1) (c) and (2), initial emergency rules and subsequent

1emergency rules promulgated under this subsection remain in effect until the date
2on which permanent rules take effect. Notwithstanding s. 227.24 (1) (e) 1d. and 1g.,
3for emergency rules promulgated under this subsection, the department is not
4required to prepare a statement of scope of the rules or to submit the proposed rules
5in final draft form to the governor for approval.
SB1035,18 6Section 18 . 101.123 (1) (h) (intro.) of the statutes is amended to read:
SB1035,16,87 101.123 (1) (h) (intro.) “Smoking" means burning or holding, or inhaling or
8exhaling smoke from, any of the following items containing tobacco or cannabis:
SB1035,19 9Section 19 . 102.43 (9) (e) of the statutes is amended to read:
SB1035,16,1310 102.43 (9) (e) The employee's employment with the employer has been
11suspended or terminated due to misconduct, as defined in s. 108.04 (5), or substantial
12fault, as defined in s. 108.04 (5g) (a), by the employee connected with the employee's
13work, subject to s. 108.04 (5m).
SB1035,20 14Section 20 . 106.50 (1m) (h) of the statutes is amended to read:
SB1035,16,2215 106.50 (1m) (h) “Discriminate" means to segregate, separate, exclude, or treat
16a person or class of persons unequally in a manner described in sub. (2), (2m), or (2r)
17because of sex, race, color, sexual orientation, disability, religion, national origin,
18marital status, or family status, ; status as a victim of domestic abuse, sexual assault,
19or stalking,; whether the person holds, or has applied for, a registry identification
20card, as defined in s. 146.44 (1) (g), has been the subject of a written certification, as
21defined in s. 146.44 (1) (h), or is or has been a member of a treatment team, as defined
22in s. 961.01 (20t);
lawful source of income,; age,; or ancestry.
SB1035,21 23Section 21 . 108.04 (5m) of the statutes is created to read:
SB1035,16,2424 108.04 (5m) Use of medical cannabis. (a) In this subsection:
SB1035,16,2525 1. “Medical cannabis” has the meaning given in s. 94.57 (1) (f).
SB1035,17,1
12. “Registry identification card” has the meaning given in s. 146.44 (1) (g).
SB1035,17,22 3. “Written certification” has the meaning given in s. 146.44 (1) (h).
SB1035,17,43 (b) Notwithstanding sub. (5), “misconduct," for purposes of sub. (5), does not
4include any of the following:
SB1035,17,85 1. A positive test for cannabis components or metabolites, in the absence of
6other actions or conduct that constitutes misconduct under sub. (5). This subdivision
7applies only with respect to an employee with a valid written certification and a valid
8registry identification card.
SB1035,17,109 2. A violation of the employer's policy concerning the use of cannabis, if all of
10the following apply:
SB1035,17,1211 a. The employee was using medical cannabis in accordance with a valid written
12certification.
SB1035,17,1313 b. The employee held a valid registry identification card.
SB1035,17,1514 c. The employee did not use or possess medical cannabis on the employer's
15premises or during working hours.
SB1035,17,1716 d. The use did not impair the individual's ability to adequately perform the
17job-related responsibilities of that individual's employment.
SB1035,17,1918 (c) Notwithstanding sub. (5g), “substantial fault," for purposes of sub. (5g), does
19not include any of the following:
SB1035,17,2320 1. A positive test for cannabis components or metabolites, in the absence of
21other acts or omissions that constitute substantial fault under sub. (5). This
22subdivision applies only with respect to an employee with a valid written
23certification and a valid registry identification card.
SB1035,17,2524 2. A violation of the employer's policy concerning the use of cannabis, if all of
25the following apply:
SB1035,18,2
1a. The employee was using medical cannabis in accordance with a valid written
2certification.
SB1035,18,33 b. The employee held a valid registry identification card.
SB1035,18,54 c. The employee did not use or possess medical cannabis on the employer's
5premises or during working hours.
SB1035,18,76 d. The use did not impair the individual's ability to adequately perform the
7job-related responsibilities of that individual's employment.
SB1035,22 8Section 22 . 111.32 (15) of the statutes is created to read:
SB1035,18,149 111.32 (15) “Use of a lawful product off the employer's premises during
10nonworking hours” includes the use of medical cannabis, as defined in s. 94.57 (1) (f),
11off the employer's premises during nonworking hours but only if such use is in
12accordance with a valid written certification, as defined in s. 146.44 (1) (h), and the
13use is by an individual who holds a valid registry identification card, as defined in
14s. 146.44 (1) (g).
SB1035,23 15Section 23 . 111.34 (1) (c) of the statutes is created to read:
SB1035,18,2216 111.34 (1) (c) 1. Except as provided in subd. 2., refusing to hire or employ,
17barring, suspending, or terminating an individual, or discriminating against an
18individual in promotion, in compensation, or in terms, conditions, or privileges of
19employment, based on the individual's use of medical cannabis, as defined in s. 94.57
20(1) (f), if such use is in accordance with a valid written certification, as defined in s.
21146.44 (1) (h), and the individual holds a valid registry identification card, as defined
22in s. 146.44 (1) (g).
SB1035,18,2323 2. Subdivision 1. does not apply if any of the following applies:
SB1035,18,2524 a. The employee uses or possesses medical cannabis on the employer's premises
25or during working hours.
SB1035,19,2
1b. The use impairs the individual's ability to undertake adequately the
2job-related responsibilities of that individual's employment.
SB1035,19,53 c. The refusal, bar, suspension, termination, or discrimination is necessary for
4the employer to avoid losing a monetary or licensing-related benefit under federal
5law or regulations.
SB1035,24 6Section 24 . 111.35 (2) (e) of the statutes is amended to read:
SB1035,19,107 111.35 (2) (e) Conflicts with any federal or state statute, rule or regulation.
8This paragraph does not apply with respect to any conflict between the use of medical
9cannabis described in s. 111.32 (15) and violations concerning marijuana or
10tetrahydrocannabinols under 21 USC 841 to 865.
SB1035,25 11Section 25 . 111.35 (2) (f) of the statutes is created to read:
SB1035,19,1412 111.35 (2) (f) In the case of use of medical cannabis described in s. 111.32 (15),
13would result in the employer losing a monetary or licensing-related benefit under
14federal law or regulations.
SB1035,26 15Section 26 . 146.44 of the statutes is created to read:
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