The bill creates a sales tax exemption for the sale of a medical cannabis product sold by a dispensary to a person who holds a valid registry identification card.

Because this bill may increase or decrease, directly or indirectly, the cost of the development, construction, financing, purchasing, sale, ownership, or availability of housing in this state, the Department of Administration, as required by law, will prepare a report to be printed as an appendix to this bill.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

AB1040,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB1040,1 Section 1. 15.01 (6) of the statutes, as affected by 2023 Wisconsin Act 20, is amended to read:

AB1040,,6 15.01 (6) “Division,” “bureau,” “section,” and “unit” means the subunits of a department or an independent agency, whether specifically created by law or created by the head of the department or the independent agency for the more economic and efficient administration and operation of the programs assigned to the department or independent agency. The office of credit unions in the department of financial institutions, the office of the inspector general in the department of children and families, the office of the inspector general in the department of health services, the office of medical cannabis regulation in the department of health services, and the office of children’s mental health in the department of health services have the meaning of “division” under this subsection. The office of the long-term care ombudsman under the board on aging and long-term care and the office of educational accountability and the office of literacy in the department of public instruction have the meaning of “bureau” under this subsection.

AB1040,2 Section 2. 15.194 (2) of the statutes is created to read:

AB1040,,8 15.194 (2) Office of medical cannabis regulation. There is created an office of medical cannabis regulation in the department of health services. The director of the office shall be appointed by the governor, and with the advice and consent of the senate appointed, to serve at the pleasure of the governor. If the position of director of the office remains vacant for a period of at least 90 days and the governor has not filled the vacancy, then the director of the office shall be appointed by a majority of the members of the joint committee on legislative organization.

AB1040,3 Section 3. 48.024 of the statutes is created to read:

AB1040,,10 48.024 Medical cannabis. (1) In this section:

AB1040,,11 (a) “Cannabis” has the meaning given for “marijuana” in s. 961.01 (14).

AB1040,,12 (b) “Medical cannabis product” has the meaning given in s. 94.57 (1) (f).

AB1040,,13 (2) A court may not consider the lawful use or possession of medical cannabis products under ch. 94 or 259 in determining custody or placement of a child under this chapter, except in cases in which a child has access to the medical cannabis products. A court may consider the unlawful use or possession of cannabis in determining custody or placement of a child under this chapter.

AB1040,4 Section 4. 59.54 (25) (a) (intro.) of the statutes is amended to read:

AB1040,,15 59.54 (25) (a) (intro.) The board may enact and enforce an ordinance to prohibit the any possession of marijuana, as defined in s. 961.01 (14), subject to the exceptions in s. 961.41 (3g) (intro.), that is unlawful under state law and provide a forfeiture for a violation of the ordinance; except that if a complaint is issued regarding an allegation of unlawful possession of more than 25 grams of marijuana, or unlawful possession of any amount of marijuana following a conviction in this state for possession of marijuana, the subject of the complaint may not be prosecuted under this subsection for the same action that is the subject of the complaint unless all of the following occur:

AB1040,5 Section 5. 66.0107 (1) (bm) of the statutes is amended to read:

AB1040,,17 66.0107 (1) (bm) Enact and enforce an ordinance to prohibit the any possession of marijuana, as defined in s. 961.01 (14), subject to the exceptions in s. 961.41 (3g) (intro.), that is unlawful under state law and provide a forfeiture for a violation of the ordinance; except that if a complaint is issued regarding an allegation of unlawful possession of more than 25 grams of marijuana, or unlawful possession of any amount of marijuana following a conviction in this state for possession of marijuana, the subject of the complaint may not be prosecuted under this paragraph for the same action that is the subject of the complaint unless the charges are dismissed or the district attorney declines to prosecute the case.

AB1040,6 Section 6. 66.0125 (1) (c) of the statutes is created to read:

AB1040,,19 66.0125 (1) (c) “Medical cannabis product” has the meaning given in s. 94.57 (1) (f).

AB1040,7 Section 7. 66.0125 (3) (a) of the statutes is amended to read:

AB1040,,21 66.0125 (3) (a) The purpose of the commission is to study, analyze, and recommend solutions for the major social, economic, and cultural problems that affect people residing or working within the local governmental unit, including problems of the family, youth, education, the aging, juvenile delinquency, health and zoning standards, discrimination in employment and public accommodations and facilities on the basis of sex, class, race, religion, sexual orientation, or ethnic or minority status and discrimination in housing on the basis of sex, class, race, use of medical cannabis products, religion, sexual orientation, ethnic or minority status, or status as a victim of domestic abuse, sexual assault, or stalking.

AB1040,8 Section 8. 66.0125 (3) (c) 1. b. of the statutes is amended to read:

AB1040,,23 66.0125 (3) (c) 1. b. To ensure to all residents of a local governmental unit, regardless of sex, race, sexual orientation, or color, the right to enjoy equal employment opportunities and to ensure to those residents, regardless of sex, race, use of medical cannabis products, sexual orientation, color, or status as a victim of domestic abuse, sexual assault, or stalking, the right to possess equal housing opportunities.

AB1040,9 Section 9. 66.0408 (4) of the statutes is created to read:

AB1040,,25 66.0408 (4) Cannabis-related business. (a) No political subdivision may regulate a medical cannabis grower, processor, or laboratory licensed under s. 94.57 or a medical cannabis dispensary operating pursuant to s. 259.10.