SB440-SSA1,2,3 1An Act to repeal 94.55 (2t), 961.11 (4g), 961.14 (4) (t), 961.32 (2m), 961.38 (1n),
2961.41 (1) (h), 961.41 (1m) (h), 961.41 (1q), 961.41 (3g) (e), 961.571 (1) (a) 7.,
3961.571 (1) (a) 11. e., 961.571 (1) (a) 11. k. and L. and 967.055 (1m) (b) 5.; to
4renumber and amend 115.35 (1), 961.01 (14) and 961.34; to amend 20.115
5(7) (gc), 49.148 (4) (a), 49.79 (1) (b), 59.54 (25) (title), 59.54 (25) (a) (intro.),
666.0107 (1) (bm), 111.35 (2) (e), 114.09 (2) (bm) 1. (intro.), 114.09 (2) (bm) 4.,
7157.06 (11) (i), 289.33 (3) (d), 349.02 (2) (b) 4., 961.41 (1r), 961.41 (1x), 961.41
8(3g) (c), 961.41 (3g) (d), 961.41 (3g) (em), 961.47 (1), 961.48 (3), 961.48 (5), 961.49
9(1m) (intro.), 961.571 (1) (a) 11. (intro.), 971.365 (1) (a), 971.365 (1) (b), 971.365
10(1) (c) and 971.365 (2); and to create 16.282, 20.115 (7) (ge), 20.192 (1) (t),
1120.255 (2) (r), 20.435 (1) (r), 20.437 (3) (r), 20.505 (1) (t), 20.566 (1) (bn), 20.835
12(2) (eq), 25.316, 48.47 (20), 66.04185, 73.17, 77.54 (71), 94.56, 94.57, 100.145,
13108.02 (18r), 108.04 (5m), 111.32 (9m), 111.32 (11m), subchapter IV of chapter

1139 [precedes 139.97], 157.06 (11) (hm), 238.139, 250.22, subchapter VIII of
2chapter 961 [precedes 961.70] and 973.016 of the statutes; relating to:
3recreational marijuana.

Current law prohibits a person from manufacturing, distributing, or delivering
marijuana; possessing marijuana with the intent to manufacture, distribute, or
deliver it; possessing or attempting to possess marijuana; using drug paraphernalia;
or possessing drug paraphernalia with the intent to produce, distribute, or use a
controlled substance. This bill changes state law so that state law allows
recreational use of marijuana.

The bill changes state law to allow a Wisconsin resident who is at least 21 years
old, or a qualifying patient who is at least 18 years old, to possess no more than two
ounces of marijuana and to allow a nonresident of Wisconsin who is at least 21 years
old to possess no more than one-quarter ounce of marijuana. Generally, under the
bill, a person who possesses more than the maximum amount he or she is allowed
to possess, but not more than 28 grams of marijuana, is subject to a civil forfeiture
not to exceed $1,000 or imprisonment not to exceed 90 days or both. A person who
possesses more than 28 grams of marijuana is guilty of a Class B misdemeanor,
except that, if the person takes action to hide the amount of marijuana he or she has
and the person has in place a security system to alert him or her to the presence of
law enforcement, a method of intimidation, or a trap that could injure or kill a person
approaching the area containing the marijuana, the person is guilty of a Class I
felony. The bill also eliminates the prohibition on possessing or using drug
paraphernalia that relates to marijuana consumption.

The bill creates a process by which a person may obtain a permit to produce,
process, or sell marijuana for recreational use and pay an excise tax for the privilege
of doing business in this state. Sixty percent of the revenue collected from the tax
is deposited into a segregated fund called the “community reinvestment fund”.

The bill requires a person to obtain separate permits from the Department of
Revenue to produce, process, distribute, or sell marijuana, and requires marijuana
producers and processors to obtain additional permits from the Department of
Agriculture, Trade and Consumer Protection. The requirements for obtaining these
permits differ based on whether the permit is issued by DOR or DATCP but, in
general, a person may not obtain such a permit if he or she is not a state resident,
is under the age of 21, or has been convicted of certain crimes; in addition, a person
may not operate under a DOR permit within 500 feet of a school, playground,
recreation facility, child care facility, public park, public transit facility, or library and
may not operate as a marijuana producer under a DATCP permit within 500 feet of

a school. A person who holds a permit from DOR must also comply with certain
operational requirements.

Under the bill, a permit applicant with 20 or more employees may not receive
a permit from DATCP or DOR unless the the applicant certifies that the applicant
has entered into a labor peace agreement with a labor organization. The labor peace
agreement prohibits the labor organization and its members from engaging in any
economic interference with persons doing business in this state, prohibits the
applicant from disrupting the efforts of the labor organization to communicate with
and to organize and represent the applicant's employees, and provides the labor
organization access to areas in which the employees work to discuss employment
rights and the terms and conditions of employment. Current law prohibits the state
and any local unit of government from requiring a labor peace agreement as a
condition for any regulatory approval. The permit requirements under the bill are
not subject to that prohibition.

The bill also requires DATCP and DOR to use a competitive scoring system to
determine which applicants are eligible to receive permits. Each department must
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. Each department may deny a permit to an
applicant with a low score.