SB1035,15 Section 15 . 77.53 (10) of the statutes is amended to read:

SB1035,9,24 77.53 (10) For the purpose of the proper administration of this section and to prevent evasion of the use tax and the duty to collect the use tax, it is presumed that tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services sold by any person for delivery in this state is sold for storage, use, or other consumption in this state until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless that person takes from the purchaser an electronic or paper certificate, in a manner prescribed by the department, to the effect that the property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable service is purchased for resale, or otherwise exempt from the tax, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services that are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), (52), and (67), and (70).

SB1035,16 Section 16 . 77.54 (70) of the statutes is created to read:

SB1035,10,6 77.54 (70) The sales price from the sales of and the storage, use, or other consumption of medical cannabis and drug paraphernalia delivered or distributed by a dispensary licensed under s. 94.57.

SB1035,17 Section 17 . 94.57 of the statutes is created to read:

SB1035,10,8 94.57 Medical cannabis. (1) Definitions. In this section:

SB1035,10,13 (b) “Dispensary” means a person who obtains packaged and labeled medical cannabis from a licensed processor and dispenses that cannabis, and cannabis paraphernalia, at a permanent location to a member of a treatment team holding a valid registry identification card, regardless of whether the dispensing is done in exchange for monetary consideration.

SB1035,10,16 (c) “Laboratory” means a person who obtains medical cannabis from a licensed processor and tests that cannabis for tetrahydrocannabinol content and the presence of molds, pesticides, heavy metals, and other contaminants.

SB1035,10,18 (d) “Licensee” means a producer, processor, or dispensary that holds a valid license under this section.

SB1035,10,19 (e) “Maximum authorized amount" has the meaning given in s. 961.01 (14c).

SB1035,10,22 (f) “Medical cannabis" means a cannabis plant or usable cannabis that is intended to be used by a qualifying patient registered under s. 146.44 to alleviate the symptoms or effects of the patient's debilitating medical condition or treatment.

SB1035,11,2 (g) “Processor" means a person who obtains medical cannabis from a licensed producer, processes the medical cannabis into usable cannabis or individual cannabis plants, packages and labels the usable cannabis or cannabis plants, and transfers or sells the packaged and labeled usable cannabis or cannabis plants to a licensed dispensary.

SB1035,11,5 (h) “Producer” means a person who plants, grows, cultivates, or harvests more than 12 cannabis plants for medical cannabis and transfers or sells the medical cannabis to a licensed processor.

SB1035,11,6 (i) “Qualifying patient" has the meaning given in s. 146.44 (1) (e).

SB1035,11,7 (j) “Registry identification card" has the meaning given in s. 146.44 (1) (g).

SB1035,11,8 (k) “School” has the meaning given in s. 118.257 (1) (d).

SB1035,11,9 (L) “Treatment team" has the meaning given in s. 961.01 (20t).

SB1035,11,10 (m) “Usable cannabis” has the meaning given in s. 961.01 (21f).

SB1035,11,19 (2) License required. No person may operate in this state as a producer, processor, or dispensary without a license issued by the department under this section. A person who engages in more than one of these activities shall obtain a separate license for each activity. A licensee may engage in the licensed activity at more than one location without obtaining a separate license. No licensee may operate at more than 2 separate locations, regardless of the number of licenses held. A person who is an employee of a licensee is not required to obtain a separate license. A person is not required to obtain a license under this section if the person handles only industrial hemp and holds a valid license under s. 94.55.

SB1035,11,22 (3) License criteria. (a) The department may issue a license under this section to an applicant only if the applicant has been a resident of this state for at least the 2 years immediately preceding the date of application.

SB1035,11,24 (b) The department may not issue a license to, and must revoke a license of, any entity to which any of the following applies:

SB1035,11,25 1. The entity is located within 500 feet of a school, including a charter school.

SB1035,12,4 2. If the entity is a dispensary, the dispensary distributes to a member of a treatment team a number of cannabis plants or an amount of usable cannabis that, in the period of distribution, results in the treatment team possessing more than the maximum authorized amount.

SB1035,12,8 3. The dispensary possesses a number of cannabis plants or an amount of usable cannabis that exceeds the combined maximum authorized amount for all of the treatment teams that use the dispensary by a number or an amount determined by the department by rule to be unacceptable.

SB1035,12,10 4. The applicant, or a principal officer or board member of the applicant, has a financial interest in a registered laboratory.

SB1035,12,13 (4) Licensing procedure; fees; license term. (a) An application for a license under this section shall be in writing on a form provided by the department and include the licensing application fee under par. (b) 1.

SB1035,12,15 (b) 1. A licensing application fee shall be an amount determined by the department but not less than $250.

SB1035,12,17 2. The annual fee for a licensee shall be an amount determined by the department but not less than $5,000.

SB1035,12,19 (c) A license is valid unless revoked. Each license shall be issued only for the applicant named in the application and may not be transferred or assigned.