SB45,1092,3 139.971 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.

SB45,1092,7 (b) An excise tax is imposed on a marijuana retailer 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).

SB45,1092,11 (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.

SB45,1092,16 (3) For purposes of this section, a marijuana producer may not sell marijuana directly to a marijuana distributor or marijuana retailer, and a marijuana retailer 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 within the microbusiness.

SB45,1092,23 139.972 Permits required. (1) (a) No person may operate in this state as a marijuana producer, marijuana processor, marijuana distributor, marijuana retailer, or microbusiness 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.

SB45,1093,3 (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.

SB45,1093,5 (c) Subject to ss. 111.321, 111.322, and 111.335, the department may not issue a permit under this section to any person to which any of the following applies:

SB45,1093,7 1. The person has been convicted of a violent misdemeanor, as defined in s. 941.29 (1g) (b), at least 3 times.

SB45,1093,9 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g) (a), unless pardoned.

SB45,1093,11 3. During the preceding 3 years, the person has been committed under s. 51.20 for being drug dependent.

SB45,1093,16 4. The person chronically and habitually uses alcohol beverages or other substances to the extent that their normal faculties are impaired. A person is presumed to chronically and habitually use alcohol beverages or other substances to the extent that their normal faculties are impaired if, within the preceding 3 years, any of the following applies:

SB45,1093,18 a. The person has been committed for involuntary treatment under s. 51.45 (13).

SB45,1093,19 b. The person has been convicted of a violation of s. 941.20 (1) (b).

SB45,1094,6 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 s. 346.63; 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 or 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.

SB45,1094,8 5. The person has income that comes principally from gambling or has been convicted of 2 or more gambling offenses.

SB45,1094,9 6. The person has been convicted of crimes relating to prostitution.

SB45,1094,11 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.

SB45,1094,12 8. The person is under the age of 21.

SB45,1094,14 9. The person has not been a resident of this state continuously for at least 90 days prior to the application date.

SB45,1094,22 (cm) 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.

SB45,1095,12 (cn) The department shall use a competitive scoring system to determine which applicants for a permit to operate as a marijuana retailer are eligible to receive that 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 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.

SB45,1095,20 (d) 1. Before the department issues a new or renewed permit under this section, the department shall give notice of the permit application to the governing body of the municipality where the permit applicant intends to operate the premises of a marijuana producer, marijuana processor, marijuana distributor, marijuana retailer, or microbusiness. No later than 30 days after the department submits the notice, the governing body of the municipality may file with the department a written objection to granting or renewing the permit. At the municipality’s request, the department may extend the period for filing objections.

SB45,1096,11 2. A written objection filed under subd. 1. shall provide all the facts on which the objection is based. In determining whether to grant or deny a permit for which an objection has been filed under this paragraph, the department shall give substantial weight to objections from a municipality based on chronic illegal activity associated with the premises for which the applicant seeks a permit or the premises of any other operation in this state for which the applicant holds or has held a valid permit or license, the conduct of the applicant’s patrons inside or outside the premises of any other operation in this state for which the applicant holds or has held a valid permit or license, and local zoning ordinances. In this subdivision, “chronic illegal activity” means a pervasive pattern of activity that threatens the public health, safety, and welfare of the municipality, including any crime or ordinance violation, and that is documented in crime statistics, police reports, emergency medical response data, calls for service, field data, or similar law enforcement agency records.

SB45,1096,16 (e) After denying a permit, the department shall immediately notify the applicant in writing of the denial and the reasons for the denial. After making a decision to grant or deny a permit for which a municipality has filed an objection under par. (d), the department shall immediately notify the governing body of the municipality in writing of its decision and the reasons for the decision.

SB45,1096,18 (f) 1. The department’s denial of a permit under this section is subject to judicial review under ch. 227.

SB45,1096,20 2. The department’s decision to grant a permit under this section regardless of an objection filed under par. (d) is subject to judicial review under ch. 227.

SB45,1096,22 (g) The department may not issue a permit under this section to any person that does not hold a valid certificate under s. 73.03 (50).

SB45,1097,6 (2) Each person that applies for a permit under this section shall submit with the application a $250 fee. Each person that is granted a permit under this section shall annually pay to the department a $2,000 fee for as long as the person holds a valid permit under this section. 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.

SB45,1097,10 (3) The department may not issue a permit under this section to operate any premises that is 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.