Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1040 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 1040
5	5	February 1, 2024 - Introduced by Representatives SNYDER, PLUMER, MACCO, MOSES,
6	6	ROZAR, SCHRAA, SORTWELL, VOS, BORN, HURD, KITCHENS, KURTZ, MELOTIK,
7	7	O'CONNOR, RODRIGUEZ, SAPIK, SCHMIDT, SPIROS and SUMMERFIELD. Referred to
8	8	Committee on Health, Aging and Long-Term Care.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to renumber 450.07 (1m) and 943.895 (4); to renumber and amend
11	11	450.071 (1), 961.385 (1) (af) and 961.385 (1) (aj); to amend 15.01 (6), 59.54 (25)
12	12	(a) (intro.), 66.0107 (1) (bm), 66.0125 (3) (a), 66.0125 (3) (c) 1. b., 66.1011 (1),
13	13	66.1201 (2m), 66.1213 (3), 66.1301 (2m), 66.1331 (2m), 66.1333 (3) (e) 2., 106.50
14	14	(1), 106.50 (1m) (h), 106.50 (1m) (nm), 106.50 (5m) (f) 1., 108.04 (5) (a) (intro.),
15	15	111.34 (1) (b), 175.60 (2) (b), 224.77 (1) (o), 234.29, 452.14 (3) (n), 961.38 (title),
16	16	961.385 (1) (ae), 961.385 (2) (intro.), 961.385 (2) (b), 961.385 (2) (cm) 3. a.,
17	17	961.385 (2) (f), 961.385 (3) (b), 961.385 (5) (a) 2. and 961.385 (6) (b); to repeal
18	18	and recreate 66.0418 (title); and to create 15.194 (2), 48.024, 66.0125 (1) (c),
19	19	66.0408 (4), 66.0418 (3), 77.54 (71), 94.57, 111.32 (9m), 111.32 (12c), 111.34 (3),
20	20	224.30 (6), chapter 259, 450.01 (16) (L), 450.03 (1) (eg) and (er), 450.07 (1m) (b),
21	21	450.071 (1) (b) 2., 450.10 (2m), 767.445, 943.895 (4) (b), 961.01 (3u), 961.01
22	22	(12q), 961.01 (14g), 961.01 (20hm), 961.01 (20t), 961.33, 961.38 (1p), 961.385 (1)
23	23	(af) 2., 961.385 (1) (aj) 2., 961.385 (2) (am), 961.385 (2) (bc), 961.385 (2) (ct),
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40	40	961.55 (8) (c) and 961.571 (1) (b) 4. of the statutes; relating to: medical
41	41	cannabis, granting rule-making authority, and providing a penalty.
42	42	Analysis by the Legislative Reference Bureau
43	43	This bill creates a program that allows a registered patient to possess and use
44	44	medical cannabis products; allows designated caregivers to possess medical
45	45	cannabis products on behalf of registered patients; licenses and regulates medical
46	46	cannabis growers, processors, and testing laboratories; and directs the state to
47	47	establish state-owned dispensaries to sell medical cannabis products. No person
48	48	may possess, sell, transfer, or transport cannabis or medical cannabis products
49	49	unless the person is licensed or registered as provided in the bill. Under the bill,
50	50	“medical cannabis products” includes products in the form of concentrates, oils,
51	51	tinctures, edibles, pills, topical forms, gels, creams, vapors, patches, liquids, and
52	52	forms administered by a nebulizer but excludes cannabis in a form that can be
53	53	smoked. Major provisions of the bill are summarized as follows.
54	54	Office of Medical Cannabis Regulation
55	55	The bill creates the Office of Medical Cannabis Regulation to establish and
56	56	manage the patient and caregiver registry (described below) and to oversee the
57	57	dispensing of medical cannabis products. The office is attached to the Department
58	58	of Health Services. The head of the office is a director who is appointed by the
59	59	governor and confirmed by the senate to serve at the pleasure of the governor. If the
60	60	position of director of the office remains vacant for a period of at least 90 days and
61	61	the governor has not filled the vacancy, the bill directs the Joint Committee on
62	62	Legislative Organization to appoint the director of the office.
63	63	DATCP duties
64	64	The bill requires the Department of Agriculture, Trade and Consumer
65	65	Protection to oversee and regulate the growing of cannabis and the processing and
66	66	testing of medical cannabis products. The bill requires DATCP to promulgate rules
67	67	establishing safety and security requirements for the premises of growers,
68	68	processors, and laboratories that handle cannabis or medical cannabis products.
69	69	Cannabis grower licenses
70	70	The bill requires any person operating as a cannabis grower to obtain a license
71	71	from DATCP. To obtain a cannabis grower license, the applicant or at least 80 percent
72	72	of the principal officers or board members of the applicant must be residents of this
73	73	state. Further, neither the applicant nor any principal officer or board member of the
74	74	applicant may have been convicted of any crime, unless at least 10 years have passed
75	75	since the completion of any sentence imposed for the crime, including any period of
76	76	incarceration, parole, or extended supervision, and any period of probation imposed
77	77	for the crime.
78	78	Under the bill, a licensed cannabis grower may plant, grow, cultivate, and
79	79	harvest cannabis; transport cannabis to or from any licensed grower, processor, or
80	80	laboratory; transfer or sell cannabis to a processor that is contracted with and
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86	86	licensed by DATCP; and engage in any related activities that are necessary for the
87	87	operation, such as possessing and storing cannabis. The applicant must also submit
88	88	to an inspection by DATCP of the applicant's premises, and the premises must meet
89	89	all of the requirements established by DATCP by rule. A licensed cannabis grower
90	90	may not plant, grow, cultivate, or harvest cannabis for personal, family, or household
91	91	use. A licensed cannabis grower may operate only within an enclosed, locked facility.
92	92	The bill requires DATCP to determine and recalculate, every year, the license
93	93	fee for cannabis growers. DATCP must propose any fee adjustments to the Joint
94	94	Committee on Finance, which may object to any fee changes. The initial fee for
95	95	cannabis grower licenses until DATCP redetermines the license fee for cannabis
96	96	growers as provided in the bill is $10,000.
97	97	Medical cannabis processor licenses
98	98	The bill requires any person who processes cannabis into medical cannabis
99	99	products to obtain a license from DATCP and to be under either a valid contract with
100	100	DATCP or a valid subcontract with the party that is contracted with DATCP. The
101	101	bill requires DATCP to obtain and review proposals from entities in this state to
102	102	process medical cannabis products using DATCP's request-for-proposal procedures.
103	103	The bill requires DATCP to license and contract with only one processor until there
104	104	are at least 50,000 patients included in the patient and caregiver registry, after
105	105	which DATCP may license and contract with as many processors as necessary to
106	106	process an adequate supply of medical cannabis products to meet the demand of
107	107	patients in this state. The bill allows the processor that is contracted with DATCP
108	108	to contract with subcontractors to provide its services, but requires each
109	109	subcontractor to obtain a separate license from DATCP.
110	110	To obtain a medical cannabis processor license, the applicant or at least 80
111	111	percent of the principal officers or board members of the applicant must be residents
112	112	of this state. Further, neither the applicant nor any principal officer or board
113	113	member of the applicant may have been convicted of any crime, unless at least 10
114	114	years have passed since the completion of any sentence imposed for the crime,
115	115	including any period of incarceration, parole, or extended supervision, and any
116	116	period of probation imposed for the crime. The applicant must also submit to an
117	117	inspection by DATCP of the applicant's premises, and the premises must meet all of
118	118	the requirements established by DATCP by rule.
119	119	A licensed processor may obtain cannabis from a licensed grower; process
120	120	cannabis into medical cannabis products; package and label medical cannabis
121	121	products; transport cannabis or medical cannabis products to or from any licensee;
122	122	and transfer, transport, or sell medical cannabis products to dispensaries operated
123	123	by the Office of Medical Cannabis Regulation. A licensed processor may operate only
124	124	within an enclosed, locked facility. The bill also prohibits processors from
125	125	advertising their services.
126	126	Before transferring or transporting medical cannabis products to a dispensary,
127	127	a licensed processor must provide samples of each lot of medical cannabis product
128	128	that it processes to a laboratory licensed by DATCP and receive certified test results
129	129	of those samples showing the tetrahydrocannabinol (THC) content of the medical
130	130	cannabis products and showing that the medical cannabis products do not contain - 4 -2023 - 2024 Legislature LRB-2858/2
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133	133	unsafe levels of any molds, pesticides, heavy metals, or any other contaminant for
134	134	which DATCP requires the medical cannabis products to be tested. Further, before
135	135	selling or transferring medical cannabis products to a dispensary, a licensed
136	136	processor must package the medical cannabis products in child-resistant packaging
137	137	and attach a label to the medical cannabis products that identifies the THC content
138	138	of the medical cannabis products and that includes any other information that
139	139	DATCP requires. Under the bill, no labeling or packaging of medical cannabis may
140	140	include any claim that the consumption or use of medical cannabis may cure,
141	141	mitigate, treat, or prevent any disease or medical condition.
142	142	The bill requires DATCP to determine and recalculate, every year, the license
143	143	fee and annual renewal fee for medical cannabis processors. DATCP must propose
144	144	any fee adjustments to JCF, which may object to any fee changes. The initial fee, and
145	145	renewal fee, for medical cannabis processor licenses until DATCP redetermines
146	146	these fees is $50,000.
147	147	Medical cannabis testing laboratory licenses
148	148	The bill requires any person who conducts testing on medical cannabis products
149	149	to obtain a license from DATCP and to be under a valid contract with DATCP. To
150	150	obtain a medical cannabis testing laboratory license, the applicant or at least 80
151	151	percent of the principal officers or board members of the applicant must be residents
152	152	of this state. Further, neither the applicant nor any principal officer or board
153	153	member of the applicant may have been convicted of any crime, unless at least 10
154	154	years have passed since the completion of any sentence imposed for the crime,
155	155	including any period of incarceration, parole, or extended supervision, and any
156	156	period of probation imposed for the crime. The applicant must also submit to an
157	157	inspection by DATCP of the applicant's premises, and the premises must meet all of
158	158	the requirements established by DATCP by rule.
159	159	A licensed medical cannabis testing laboratory may obtain medical cannabis
160	160	products from a licensed processor and test medical cannabis products. When testing
161	161	medical cannabis products, a laboratory must test the products for THC content and
162	162	the presence of molds, pesticides, heavy metals, and other contaminants identified
163	163	by DATCP by rule. A licensed medical cannabis testing laboratory may operate only
164	164	within an enclosed, locked facility. The bill also prohibits laboratories from
165	165	advertising their services.
166	166	The bill requires DATCP to determine and recalculate, every year, the license
167	167	fee and annual renewal fee for medical cannabis testing laboratories. DATCP must
168	168	propose any fee adjustments to JCF, which may object to any fee changes. The initial
169	169	fee, and renewal fee, for medical cannabis testing laboratory licenses until DATCP
170	170	redetermines these fees is $5,000.
171	171	Confidentiality requirements for grower, processor, and laboratory licensees
172	172	and applicants
173	173	The bill requires DATCP to keep certain information confidential, including
174	174	information relating to the locations of proposed or existing cannabis growers,
175	175	medical cannabis processors, and medical cannabis testing laboratories; personal
176	176	information about grower, processor, and laboratory licensees or applicants, other
177	177	than a licensee's or applicant's name; information obtained as a result of any criminal - 5 -2023 - 2024 Legislature
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181	181	history search; and any other information that could create a security risk if
182	182	disclosed.
183	183	DATCP enforcement and penalties
184	184	The bill authorizes DATCP to conduct investigations, hold hearings, and make
185	185	findings as to whether a person has violated any provisions of this bill relating to the
186	186	regulation of cannabis growing, processing, and testing. Under the bill, if DATCP
187	187	determines that a licensed cannabis grower, medical cannabis processor, or medical
188	188	cannabis testing laboratory has negligently violated any applicable requirements,
189	189	DATCP may establish a plan to correct the violation. That plan must include a
190	190	reasonable date by which the licensee must correct the negligent violation and a
191	191	requirement that the licensee periodically report to DATCP on the licensee's
192	192	compliance with the plan for at least the following two years.
193	193	The bill allows DATCP to suspend or revoke the license of any licensee that
194	194	violates any applicable requirement under the bill. Under the bill, a person who
195	195	violates any applicable requirement may be required to forfeit between $200 and
196	196	$5,000 or, for an offense committed within five years of an offense for which a penalty
197	197	has already been assessed, between $400 and $10,000. In addition, under the bill,
198	198	any person who violates any applicable requirements by fraud must be fined between
199	199	$2,000 and $10,000.
200	200	Patient and caregiver registry
201	201	The bill requires the Office of Medical Cannabis Regulation to create and
202	202	maintain a registry that includes all patients and caregivers authorized to purchase
203	203	and possess medical cannabis products. To be included on the registry as a patient,
204	204	an individual must be a permanent resident of this state; must not be on parole,
205	205	probation, or extended supervision; and must have written confirmation from a
206	206	prescriber that the prescriber established a bona fide relationship with the patient,
207	207	met with the patient in person, and determined to a reasonable degree of medical
208	208	certainty that the patient has a medical condition that qualifies the patient for
209	209	inclusion on the patient and caregiver registry. Conditions that qualify an individual
210	210	for inclusion on the patient and caregiver registry include cancer, seizures or
211	211	epilepsy, glaucoma, severe chronic pain, severe muscle spasms, severe chronic
212	212	nausea, Parkinson's disease, multiple sclerosis, inflammatory bowel disease, and
213	213	any terminal illness with a probable life expectancy of less than one year. Written
214	214	confirmation from a prescriber that a patient has a medical condition that qualifies
215	215	the patient for inclusion on the patient and caregiver registry is valid for two years
216	216	from the day that the prescriber confirms that the patient has the medical condition,
217	217	at which point the patient must obtain a renewed confirmation that the patient
218	218	continues to have a medical condition that qualifies the patient for further inclusion
219	219	on the registry.
220	220	A patient must be 18 years of age or older. If an individual is under the age of
221	221	18, then the individual must provide written consent from all of the individual's
222	222	parents or, if legal custody of the individual has been awarded by a court, all person's
223	223	awarded legal custody of the individual to be included on the registry. The fee for
224	224	inclusion on the patient and caregiver registry as a patient is $100 per year. If the
225	225	patient qualifies for a hardship exception, as determined by the office, the fee for - 6 -2023 - 2024 Legislature LRB-2858/2
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228	228	inclusion on the patient and caregiver registry as a patient is instead $50 per year.
229	229	The office must issue a registry identification card to every patient and caregiver who
230	230	is included on the registry.
231	231	A patient included on the patient and caregiver registry may designate up to
232	232	three caregivers who may purchase and possess medical cannabis products on the
233	233	patient's behalf. When designating caregivers for a patient, the patient must submit
234	234	a complete list of caregivers with the names and addresses of each caregiver and an
235	235	affirmation that each caregiver has consented to act as the patient's caregiver. No
236	236	person may act as a caregiver unless the person is 21 years of age or older, is a
237	237	resident of the state, and has not been convicted of any crime, unless at least 10 years
238	238	have passed since the completion of any sentence imposed for the crime, including
239	239	any period of incarceration, parole, or extended supervision, and any period of
240	240	probation imposed for the crime. If the patient is under the age of 18, the office must
241	241	designate the patient's parents or guardians as the patient's caregivers, and the
242	242	patient's parents or guardians may designate one additional caregiver. No person
243	243	may act as a caregiver for more than five patients, unless the individual is an
244	244	employee of a residential care facility. The bill directs the office to establish
245	245	reasonable limits on the number of patients for which an employee of a residential
246	246	care facility may be designated as a caregiver. The bill requires the office to conduct
247	247	a background check of every caregiver before adding the caregiver to the registry.
248	248	The bill provides that any individual who is a caregiver may revoke his or her consent
249	249	to act as a patient's caregiver at any time and remove himself or herself from the
250	250	registry by submitting a written statement to the office to that effect.
251	251	A patient who holds a valid registry identification card may use medical
252	252	cannabis products and possess medical cannabis products at the patient's residence,
253	253	between the dispensary from which the products were purchased and the patient's
254	254	residence, and between the patient's residences if the patient has more than one
255	255	residence. A caregiver who holds a valid registry identification card may possess
256	256	medical cannabis products at the patient's residence, between the dispensary from
257	257	which the products were purchased and the caregiver's or the caregiver's patient's
258	258	residence, and between the caregiver's and the caregiver's patient's residence.
259	259	Under the bill, a patient's residence includes any temporary accommodation if the
260	260	patient intends to or does stay at the temporary accommodation overnight.
261	261	Under the bill, the office must remove a patient from the patient and caregiver
262	262	registry under certain conditions, including that the patient has not paid the annual
263	263	fee; the patient fails to submit written confirmation that the patient continues to
264	264	have a condition that qualifies the patient for inclusion on the registry prior to the
265	265	expiration of the previous written confirmation; the patient has been convicted of a
266	266	violation of certain controlled substances laws; the patient has been convicted of any
267	267	felony; the patient has violated any provision of the medical cannabis laws or
268	268	regulations by fraud; the patient is no longer a resident of the state; or the patient
269	269	voluntarily requests to be removed from the patient and caregiver registry. Further,
270	270	the office must remove a caregiver from the patient and caregiver registry if the
271	271	caregiver has been convicted of any crime, the caregiver has violated any provision
272	272	of the medical cannabis laws or regulations by fraud, or the caregiver is no longer a - 7 -2023 - 2024 Legislature
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276	276	resident of the state. If a patient is removed from the patient and caregiver registry,
277	277	the office must remove any caregivers designated for that patient from the patient
278	278	and caregiver registry unless the caregiver is a caregiver for another patient who is
279	279	on the patient and caregiver registry.
280	280	Medical cannabis dispensaries
281	281	Under the bill, no person other than a dispensary operated by the Office of
282	282	Medical Cannabis Regulation may sell or transfer medical cannabis products to
283	283	patients and caregivers. The bill directs the office to establish a total of five
284	284	dispensaries in the state, with one dispensary in each of the five regions that DHS
285	285	has established for data analysis and communication purposes. Each dispensary
286	286	may obtain packaged and labeled medical cannabis products from licensed
287	287	processors and dispense medical cannabis products to patients and caregivers who
288	288	present photo identification and a valid registry identification card. The bill directs
289	289	the office to set the price of medical cannabis products offered for sale at dispensaries.
290	290	The office may set the price of medical cannabis products only at a level sufficient to
291	291	recoup product and operational costs.
292	292	Before a dispensary may dispense medical cannabis products to a patient or a
293	293	patient's caregiver, the dispensary must direct a pharmacist who is employed by the
294	294	dispensary to consult with the patient or the patient's caregiver and review the
295	295	patient's records under the Prescription Drug Monitoring Program. After a
296	296	consultation, if the patient has never been dispensed medical cannabis products in
297	297	this state, the pharmacist must recommend a daily dosage for the patient and record
298	298	the recommended daily dosage in the patient and caregiver registry. A patient who
299	299	has never been dispensed medical cannabis products in this state may be dispensed
300	300	not more than a 30-day supply of medical cannabis products. After receiving an
301	301	initial 30-day supply, a dispensary may dispense not more than a 90-day supply of
302	302	medical cannabis products. If the patient has previously been recommended a daily
303	303	dosage, the consulting pharmacist may update the patient's recommended daily
304	304	dosage. If a pharmacist recommends a new daily dosage for a patient, the pharmacist
305	305	must record the updated recommendation in the patient and caregiver registry. No
306	306	dispensary may dispense any medical cannabis products to a patient or caregiver for
307	307	a patient who, based on the amount of medical cannabis products previously
308	308	dispensed and the patient's recommended daily dosage, has or should have a supply
309	309	of medical cannabis products for more than seven days.
310	310	The bill prohibits dispensaries or dispensary employees from claiming that
311	311	medical cannabis may cure, mitigate, treat, or prevent any disease or medical
312	312	condition. The bill also prohibits dispensaries from advertising their services.
313	313	Prescription drug monitoring program
314	314	Current law requires the Controlled Substances Board to establish a
315	315	Prescription Drug Monitoring Program (PDMP) that requires pharmacies and
316	316	health care practitioners to generate records documenting the dispensing of
317	317	monitored prescription drugs. Records from the PDMP may be disclosed to persons
318	318	specified under current law or by the board by rule. Current law also requires that
319	319	a patient's records under the PDMP be reviewed before the practitioner issues a
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323	323	The bill requires records to be generated for the PDMP documenting the
324	324	dispensing of medical cannabis products and requires the review of a patient's PDMP
325	325	records by a dispensary pharmacist before a medical cannabis product is dispensed
326	326	to a qualifying patient. The bill also adds medical cannabis to various other PDMP
327	327	provisions.
328	328	Criminal provisions
329	329	The bill decriminalizes the possession, manufacture, distribution, and delivery
330	330	of medical cannabis products, if that possession, manufacture, distribution, or
331	331	delivery is done in compliance with the medical cannabis program established under
332	332	the bill.
333	333	Under current law, it is illegal to possess, manufacture, distribute, or deliver
334	334	marijuana. The bill authorizes the possession, distribution, or delivery of medical
335	335	cannabis products by a registered patient or his or her caregiver if 1) the possession,
336	336	distribution, or delivery of medical cannabis products is done to facilitate a
337	337	registered patient's medical use of the product; 2) the medical cannabis products are
338	338	obtained from a person who is authorized to distribute or deliver medical cannabis
339	339	products under the medical cannabis program; 3) the medical cannabis product is in
340	340	a form authorized under the medical cannabis program and does not exceed the
341	341	amount specified for the registered patient; 4) the person is carrying a registry
342	342	identification card; and 5) the possession of the medical cannabis product is at the
343	343	residence of a registered patient or while being transported to the residence of a
344	344	registered patient. The bill authorizes a licensee or employee of a licensee to possess,
345	345	manufacture, distribute, or deliver cannabis or medical cannabis products if it is
346	346	done in the usual course of business or employment.
347	347	Current law also prohibits the possession, manufacture, delivery, or
348	348	advertising of drug paraphernalia. The bill also excludes from the definition of drug
349	349	paraphernalia any object used, designed for use, or primarily intended for use by a
350	350	registered patient in compliance with the medical cannabis program established
351	351	under the bill.
352	352	The bill establishes a civil penalty of $25 if a registered patient or his or her
353	353	caregiver violates either the requirement to carry the registry identification card or
354	354	possess the medical cannabis products only at or in transport to the qualifying
355	355	patient's residence.
356	356	The bill also clarifies that a financial institution, and a person acting on behalf
357	357	of or providing services to a financial institution, does not violate the state's money
358	358	laundering statute solely by receiving deposits, extending credit, conducting funds
359	359	transfers, transporting cash or other financial instruments, or providing other
360	360	financial services to a licensed cannabis grower, processor, or laboratory or a medical
361	361	cannabis dispensary operated by the Office of Medical Cannabis Regulation.
362	362	Child placement and custody
363	363	Under the bill a court may not consider the lawful use or possession of cannabis
364	364	or medical cannabis products in determining custody or placement of a child under
365	365	the Children's Code or under an action affecting the family, except in cases in which
366	366	a child has access to the cannabis. The bill specifies that a court may consider the - 9 -2023 - 2024 Legislature
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370	370	unlawful use or possession of cannabis in determining custody and placement of a
371	371	child.
372	372	Fair employment law
373	373	Under the current fair employment law, an employer may not refuse to hire or
374	374	employ, bar or terminate from employment, or discriminate against any individual
375	375	in promotion or compensation or in terms, conditions, or privileges of employment
376	376	because the individual has a disability. Such discrimination against an individual
377	377	with a disability includes refusing to reasonably accommodate an employee's or
378	378	prospective employee's disability unless the employer can demonstrate that the
379	379	accommodation would pose a hardship on the employer's program, enterprise, or
380	380	business. Also under the fair employment law, an employer may not refuse to hire
381	381	or employ, bar or terminate from employment, or discriminate against any individual
382	382	in promotion or compensation or in terms, conditions, or privileges of employment
383	383	because of the individual's use or nonuse of lawful products off the employer's
384	384	premises during nonworking hours.
385	385	The Department of Workforce Development enforces the fair employment law,
386	386	may receive and investigate complaints charging discrimination or discriminatory
387	387	practices, and may, if an employer is found to have engaged in discrimination, order
388	388	such action by the respondent as will effectuate the purpose of the fair employment
389	389	law, including awarding back pay. Decisions of DWD hearing examiners made under
390	390	the fair employment law are subject to further review by the Labor and Industry
391	391	Review Commission and a court.
392	392	The bill provides that the fair employment law does not apply to, and therefore
393	393	does not protect against discrimination or discriminatory practices, any act of an
394	394	employer based on an individual's use of medical cannabis products, the individual's
395	395	other use of cannabis, or the individual testing positive for the presence of
396	396	tetrahydrocannabinols. The bill further explicitly provides that the fair employment
397	397	law does not require an employer to permit, accommodate, or allow the medical use
398	398	of a medical cannabis product, or to modify any job or working conditions of any
399	399	employee who engages in the medical use of medical cannabis products or who for
400	400	any reason seeks to engage in the medical use of medical cannabis products. The bill
401	401	also further provides that the fair employment law does not prohibit an employer
402	402	from refusing to hire, terminating, discharging, disciplining, or otherwise
403	403	discriminating against an individual with respect to hiring, discharging, tenure,
404	404	promotion, or compensation, or in terms, conditions, or privileges of employment as
405	405	a result, in whole or in part, of the individual's medical use of medical cannabis
406	406	products, the individual's other use of cannabis, or the individual testing positive for
407	407	the presence of tetrahydrocannabinols, regardless of any impairment or lack of
408	408	impairment resulting therefrom.
409	409	Unemployment insurance; worker's compensation
410	410	Currently, an individual whose work is terminated by an employer for
411	411	misconduct by the employee connected with the employee's work is ineligible to
412	412	receive unemployment insurance (UI) benefits until the individual satisfies certain
413	413	conditions. In addition, the wages paid to the individual by that employer are
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416	416	ASSEMBLY BILL 1040
417	417	individual's entitlement to UI benefits. “Misconduct,” for purposes of these
418	418	provisions, is defined specifically as including a violation by an employee of an
419	419	employer's reasonable written policy concerning the use of a controlled substance if
420	420	the employee 1) had knowledge of the policy and 2) admitted to the use of a controlled
421	421	substance, refused to take a test, or tested positive for the use of a controlled
422	422	substance in a test used by the employer in accordance with a testing methodology
423	423	approved by DWD.
424	424	Also under current law, an employer is not liable for temporary disability
425	425	benefits under the worker's compensation law during an employee's healing period
426	426	if the employee is suspended or terminated for misconduct as defined above.
427	427	The bill retains these provisions regarding misconduct and further provides
428	428	that such a reasonable written policy may include a drug-free workplace policy and
429	429	may include a policy that includes testing for the presence of tetrahydrocannabinols.
430	430	Open housing law
431	431	Under the current open housing law and other laws, it is unlawful for any
432	432	person to engage in certain forms of discrimination in housing based upon certain
433	433	characteristics of an individual such as sex, race, color, sexual orientation, disability,
434	434	religion, national origin, marital status, and family status. The open housing law
435	435	protects against evictions and other actions that are made on the aforementioned
436	436	bases. The open housing law is administered by DWD and allows for enforcement
437	437	through civil actions brought by or on behalf of aggrieved persons and, in cases of
438	438	alleged patterns or practices of discrimination, by the attorney general.
439	439	The bill adds use of medical cannabis products to the list of characteristics on
440	440	which it is unlawful to discriminate in housing.
441	441	Limitation of local regulation
442	442	The bill prohibits political subdivisions from 1) regulating a medical cannabis
443	443	grower, processor, testing laboratory, or dispensary; 2) regulating the lawful
444	444	recommendation or delivery of medical cannabis products; 3) regulating the lawful
445	445	use or possession of medical cannabis products; and 4) restricting in a zoning
446	446	ordinance the location or operation of medical cannabis growing, processing, testing,
447	447	or dispensing.
448	448	Sales tax exemption
449	449	The bill creates a sales tax exemption for the sale of a medical cannabis product
450	450	sold by a dispensary to a person who holds a valid registry identification card.
451	451	Because this bill may increase or decrease, directly or indirectly, the cost of the
452	452	development, construction, financing, purchasing, sale, ownership, or availability of
453	453	housing in this state, the Department of Administration, as required by law, will
454	454	prepare a report to be printed as an appendix to this bill.
455	455	Because this bill relates to an exemption from state or local taxes, it may be
456	456	referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
457	457	as an appendix to the bill.
458	458	Because this bill creates a new crime or revises a penalty for an existing crime,
459	459	the Joint Review Committee on Criminal Penalties may be requested to prepare a
460	460	report. - 11 -2023 - 2024 Legislature
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462	462	JC/CH/MP/ES/MD:wlj/amn/cjs
463	463	ASSEMBLY BILL 1040
464	464	For further information see the state and local fiscal estimate, which will be
465	465	printed as an appendix to this bill.
466	466	The people of the state of Wisconsin, represented in senate and assembly, do
467	467	enact as follows:
468	468	SECTION 1. 15.01 (6) of the statutes, as affected by 2023 Wisconsin Act 20, is
469	469	amended to read:
470	470	15.01 (6) “Division," “bureau," “section," and “unit" means the subunits of a
471	471	department or an independent agency, whether specifically created by law or created
472	472	by the head of the department or the independent agency for the more economic and
473	473	efficient administration and operation of the programs assigned to the department
474	474	or independent agency. The office of credit unions in the department of financial
475	475	institutions, the office of the inspector general in the department of children and
476	476	families, the office of the inspector general in the department of health services, the
477	477	office of medical cannabis regulation in the department of health services, and the
478	478	office of children's mental health in the department of health services have the
479	479	meaning of “division" under this subsection. The office of the long-term care
480	480	ombudsman under the board on aging and long-term care and the office of
481	481	educational accountability and the office of literacy in the department of public
482	482	instruction have the meaning of “bureau" under this subsection.
483	483	SECTION 2. 15.194 (2) of the statutes is created to read:
484	484	15.194 (2) OFFICE OF MEDICAL CANNABIS REGULATION. There is created an office
485	485	of medical cannabis regulation in the department of health services. The director of
486	486	the office shall be appointed by the governor, and with the advice and consent of the
487	487	senate appointed, to serve at the pleasure of the governor. If the position of director
488	488	of the office remains vacant for a period of at least 90 days and the governor has not
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511	511	SECTION 2 ASSEMBLY BILL 1040
512	512	filled the vacancy, then the director of the office shall be appointed by a majority of
513	513	the members of the joint committee on legislative organization.
514	514	SECTION 3. 48.024 of the statutes is created to read:
515	515	48.024 Medical cannabis. (1) In this section:
516	516	(a) “Cannabis” has the meaning given for “marijuana” in s. 961.01 (14).
517	517	(b) “Medical cannabis product” has the meaning given in s. 94.57 (1) (f).
518	518	(2) A court may not consider the lawful use or possession of medical cannabis
519	519	products under ch. 94 or 259 in determining custody or placement of a child under
520	520	this chapter, except in cases in which a child has access to the medical cannabis
521	521	products. A court may consider the unlawful use or possession of cannabis in
522	522	determining custody or placement of a child under this chapter.
523	523	SECTION 4. 59.54 (25) (a) (intro.) of the statutes is amended to read:
524	524	59.54 (25) (a) (intro.) The board may enact and enforce an ordinance to prohibit
525	525	the any possession of marijuana, as defined in s. 961.01 (14), subject to the exceptions
526	526	in s. 961.41 (3g) (intro.), that is unlawful under state law and provide a forfeiture for
527	527	a violation of the ordinance; except that if a complaint is issued regarding an
528	528	allegation of unlawful possession of more than 25 grams of marijuana, or unlawful
529	529	possession of any amount of marijuana following a conviction in this state for
530	530	possession of marijuana, the subject of the complaint may not be prosecuted under
531	531	this subsection for the same action that is the subject of the complaint unless all of
532	532	the following occur:
533	533	SECTION 5. 66.0107 (1) (bm) of the statutes is amended to read:
534	534	66.0107 (1) (bm) Enact and enforce an ordinance to prohibit the any possession
535	535	of marijuana, as defined in s. 961.01 (14), subject to the exceptions in s. 961.41 (3g)
536	536	(intro.), that is unlawful under state law and provide a forfeiture for a violation of
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564	564	SECTION 5
565	565	ASSEMBLY BILL 1040
566	566	the ordinance; except that if a complaint is issued regarding an allegation of unlawful
567	567	possession of more than 25 grams of marijuana, or unlawful possession of any
568	568	amount of marijuana following a conviction in this state for possession of marijuana,
569	569	the subject of the complaint may not be prosecuted under this paragraph for the same
570	570	action that is the subject of the complaint unless the charges are dismissed or the
571	571	district attorney declines to prosecute the case.
572	572	SECTION 6. 66.0125 (1) (c) of the statutes is created to read:
573	573	66.0125 (1) (c) “Medical cannabis product” has the meaning given in s. 94.57
574	574	(1) (f).
575	575	SECTION 7. 66.0125 (3) (a) of the statutes is amended to read:
576	576	66.0125 (3) (a) The purpose of the commission is to study, analyze, and
577	577	recommend solutions for the major social, economic, and cultural problems that
578	578	affect people residing or working within the local governmental unit, including
579	579	problems of the family, youth, education, the aging, juvenile delinquency, health and
580	580	zoning standards, discrimination in employment and public accommodations and
581	581	facilities on the basis of sex, class, race, religion, sexual orientation, or ethnic or
582	582	minority status and discrimination in housing on the basis of sex, class, race, use of
583	583	medical cannabis products, religion, sexual orientation, ethnic or minority status, or
584	584	status as a victim of domestic abuse, sexual assault, or stalking.
585	585	SECTION 8. 66.0125 (3) (c) 1. b. of the statutes is amended to read:
586	586	66.0125 (3) (c) 1. b. To ensure to all residents of a local governmental unit,
587	587	regardless of sex, race, sexual orientation, or color, the right to enjoy equal
588	588	employment opportunities and to ensure to those residents, regardless of sex, race,
589	589	use of medical cannabis products, sexual orientation, color, or status as a victim of
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615	615	SECTION 8 ASSEMBLY BILL 1040
616	616	domestic abuse, sexual assault, or stalking, the right to possess equal housing
617	617	opportunities.
618	618	SECTION 9. 66.0408 (4) of the statutes is created to read:
619	619	66.0408 (4) CANNABIS-RELATED BUSINESS. (a) No political subdivision may
620	620	regulate a medical cannabis grower, processor, or laboratory licensed under s. 94.57
621	621	or a medical cannabis dispensary operating pursuant to s. 259.10.
622	622	(b) No political subdivision may regulate the lawful recommendation or
623	623	delivery of medical cannabis products, as defined in s. 94.57 (1) (f).
624	624	(c) A political subdivision may not restrict, in a zoning ordinance under s. 59.69,
625	625	60.61, or 62.23, the location or operation of medical cannabis growing, processing,
626	626	testing, or dispensing.
627	627	SECTION 10. 66.0418 (title) of the statutes is repealed and recreated to read:
628	628	66.0418 (title) Local food and drug regulation.
629	629	SECTION 11. 66.0418 (3) of the statutes is created to read:
630	630	66.0418 (3) No political subdivision may regulate the lawful use or possession
631	631	of cannabis or medical cannabis products under s. 94.57 or ch. 259.
632	632	SECTION 12. 66.1011 (1) of the statutes is amended to read:
633	633	66.1011 (1) DECLARATION OF POLICY. The right of all persons to have equal
634	634	opportunities for housing regardless of their sex, race, color, disability, as defined in
635	635	s. 106.50 (1m) (g), sexual orientation, as defined in s. 111.32 (13m), religion, national
636	636	origin, use of medical cannabis products, as defined in s. 94.57 (1) (f), marital status,
637	637	family status, as defined in s. 106.50 (1m) (k), status as a victim of domestic abuse,
638	638	sexual assault, or stalking, as defined in s. 106.50 (1m) (u), lawful source of income,
639	639	age, or ancestry is a matter both of statewide concern under ss. 101.132 and 106.50
640	640	and also of local interest under this section and s. 66.0125. The enactment of ss.
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668	668	SECTION 12
669	669	ASSEMBLY BILL 1040
670	670	101.132 and 106.50 by the legislature does not preempt the subject matter of equal
671	671	opportunities in housing from consideration by political subdivisions, and does not
672	672	exempt political subdivisions from their duty, nor deprive them of their right, to enact
673	673	ordinances that prohibit discrimination in any type of housing solely on the basis of
674	674	an individual being a member of a protected class.
675	675	SECTION 13. 66.1201 (2m) of the statutes is amended to read:
676	676	66.1201 (2m) DISCRIMINATION. Persons otherwise entitled to any right, benefit,
677	677	facility, or privilege under ss. 66.1201 to 66.1211 may not be denied the right, benefit,
678	678	facility, or privilege in any manner for any purpose nor be discriminated against
679	679	because of sex, race, color, creed, sexual orientation, status as a victim of domestic
680	680	abuse, sexual assault, or stalking, as defined in s. 106.50 (1m) (u), or national origin,
681	681	or use of medical cannabis products, as defined in s. 94.57 (1) (f).
682	682	SECTION 14. 66.1213 (3) of the statutes is amended to read:
683	683	66.1213 (3) DISCRIMINATION. Persons otherwise entitled to any right, benefit,
684	684	facility, or privilege under this section may not be denied the right, benefit, facility,
685	685	or privilege in any manner for any purpose nor be discriminated against because of
686	686	sex, race, color, creed, sexual orientation, status as a victim of domestic abuse, sexual
687	687	assault, or stalking, as defined in s. 106.50 (1m) (u), or national origin, or use of
688	688	medical cannabis products, as defined in s. 94.57 (1) (f).
689	689	SECTION 15. 66.1301 (2m) of the statutes is amended to read:
690	690	66.1301 (2m) DISCRIMINATION. Persons entitled to any right, benefit, facility,
691	691	or privilege under ss. 66.1301 to 66.1329 may not be denied the right, benefit, facility,
692	692	or privilege in any manner for any purpose nor be discriminated against because of
693	693	sex, race, color, creed, sexual orientation, status as a victim of domestic abuse, sexual
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719	719	SECTION 15 ASSEMBLY BILL 1040
720	720	assault, or stalking, as defined in s. 106.50 (1m) (u), or national origin, or use of
721	721	medical cannabis products, as defined in s. 94.57 (1) (f).
722	722	SECTION 16. 66.1331 (2m) of the statutes is amended to read:
723	723	66.1331 (2m) DISCRIMINATION. Persons otherwise entitled to any right, benefit,
724	724	facility, or privilege under this section may not be denied the right, benefit, facility,
725	725	or privilege in any manner for any purpose nor be discriminated against because of
726	726	sex, race, color, creed, sexual orientation, status as a victim of domestic abuse, sexual
727	727	assault, or stalking, as defined in s. 106.50 (1m) (u), or national origin, or use of
728	728	medical cannabis products, as defined in s. 94.57 (1) (f).
729	729	SECTION 17. 66.1333 (3) (e) 2. of the statutes is amended to read:
730	730	66.1333 (3) (e) 2. Persons otherwise entitled to any right, benefit, facility, or
731	731	privilege under this section may not be denied the right, benefit, facility, or privilege
732	732	in any manner for any purpose nor be discriminated against because of sex, race,
733	733	color, creed, sexual orientation, status as a victim of domestic abuse, sexual assault,
734	734	or stalking, as defined in s. 106.50 (1m) (u), or national origin, or use of medical
735	735	cannabis products, as defined in s. 94.57 (1) (f).
736	736	SECTION 18. 77.54 (71) of the statutes is created to read:
737	737	77.54 (71) The sales price from the sale of a medical cannabis product, as
738	738	defined in s. 94.57 (1) (f), sold by a dispensary, as defined in s. 259.01 (2), to a person
739	739	who holds a valid registry identification card, as provided under s. 259.04.
740	740	SECTION 19. 94.57 of the statutes is created to read:
741	741	94.57 Cannabis growers, medical cannabis processors, and medical
742	742	cannabis testing laboratories. (1) DEFINITIONS. In this section:
743	743	(a) “Cannabis" has the meaning given for “marijuana” in s. 961.01 (14).
744	744	(am) “Dispensary” has the meaning given in s. 259.01 (2).
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772	772	SECTION 19
773	773	ASSEMBLY BILL 1040
774	774	(b) “Grower” means a person that plants, grows, cultivates, or harvests
775	775	cannabis.
776	776	(c) “Laboratory” means a person that obtains medical cannabis products or
777	777	samples of such products from a licensed processor and conducts testing on those
778	778	products or samples.
779	779	(d) “Licensee” means a grower, processor, or laboratory that holds a valid
780	780	license from the department under this section.
781	781	(f) “Medical cannabis product” means a product that contains cannabinoids
782	782	that have been extracted from cannabis plant material, that is intended for use by
783	783	a patient, as defined in s. 259.01 (9), to alleviate the symptoms of a medical condition
784	784	or to alleviate the symptoms of treatment for a medical condition, and that is
785	785	processed for human consumption in the form of concentrates, oils, tinctures, edibles,
786	786	pills, topical forms, gels, creams, vapors, patches, liquids, or forms administered by
787	787	a nebulizer. “Medical cannabis product” does not include cannabis in a form that can
788	788	be smoked.
789	789	(g) “Processor” means a person that obtains cannabis from a licensed grower,
790	790	processes the cannabis into medical cannabis products, and packages and labels the
791	791	medical cannabis products.
792	792	(h) “Resident” means an individual who maintains his or her place of
793	793	permanent abode in this state. Domiciliary intent is required to establish that a
794	794	person is maintaining his or her place of permanent abode in this state. Mere
795	795	ownership of property is not sufficient to establish domiciliary intent. Evidence of
796	796	domiciliary intent includes the location where the individual votes, pays personal
797	797	income taxes, or obtains a driver's license.
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823	823	SECTION 19 ASSEMBLY BILL 1040
824	824	(2) DEPARTMENT DUTIES. (a) The department shall oversee and regulate the
825	825	growing of cannabis and the processing and testing of medical cannabis products.
826	826	(b) The department shall promulgate rules establishing safety and security
827	827	requirements for the premises of growers, processors, and laboratories that handle
828	828	cannabis or medical cannabis products.
829	829	(c) Annually, no later than October 15, the department shall submit a report
830	830	to the chief clerk of each house of the legislature for distribution to the legislature
831	831	under s. 13.172 (2) on the status of medical cannabis regulation under this section.
832	832	The report shall include information on all of the following:
833	833	1. The number of current licensees.
834	834	2. The location by county of each licensee.
835	835	3. The number of applications for licenses under this section received over the
836	836	previous year and the number of applications approved.
837	837	4. The expenses and revenues of the program over the previous year, all funds
838	838	held in reserve for the program, and an estimation of the expenses and revenues of
839	839	the program over the following year.
840	840	(3) LICENSE REQUIRED. No person may operate in this state as a grower,
841	841	processor, or laboratory without a license issued by the department under this
842	842	section. A person who is an employee of a licensee is not required to obtain a separate
843	843	license.
844	844	(4) CANNABIS GROWER LICENSES. (a) License criteria. The department may issue
845	845	a grower license to an applicant only if the department determines that all of the
846	846	following requirements are met:
847	847	1. The applicant, or each principal officer or board member of the applicant, has
848	848	not been convicted of any crime, unless at least 10 years have passed since the
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876	876	SECTION 19
877	877	ASSEMBLY BILL 1040
878	878	completion of any sentence imposed for the crime, including any period of
879	879	incarceration, parole, or extended supervision, and any period of probation imposed
880	880	for the crime. The department, with the assistance of the department of justice, shall
881	881	conduct a background investigation of any applicant or each principal officer or board
882	882	member of any applicant who applies for a grower license under this section, which
883	883	shall include requiring all such persons to be fingerprinted on 2 fingerprint cards
884	884	each bearing a complete set of the person's fingerprints, or by other technologies
885	885	approved by law enforcement agencies. The department of justice shall submit any
886	886	such fingerprint cards to the federal bureau of investigation for the purposes of
887	887	verifying the identity of the person fingerprinted and obtaining records of his or her
888	888	criminal arrests and convictions.
889	889	2. The applicant pays the annual fee for growers established by the department
890	890	under sub. (7).
891	891	3. The applicant is a resident, or at least 80 percent of the principal officers or
892	892	board members of the applicant are residents.
893	893	4. The applicant submits to an inspection of the premises by the department,
894	894	and the premises meets all requirements established by the department under sub.
895	895	(2).
896	896	(b) Authorized activities. 1. A licensed grower may plant, grow, cultivate, and
897	897	harvest cannabis; transport cannabis to or from any licensee; transfer or sell
898	898	cannabis to a licensed processor that is contracted with the department under sub.
899	899	(5); and engage in any related activities that are necessary for the operation, such
900	900	as possessing and storing cannabis.
901	901	2. A licensed grower may operate only within an enclosed, locked facility.
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926	926	JC/CH/MP/ES/MD:wlj/amn/cjs
927	927	SECTION 19 ASSEMBLY BILL 1040
928	928	3. A licensed grower may not plant, grow, cultivate, or harvest cannabis for
929	929	personal, family, or household use.
930	930	(c) License renewal. A licensed grower shall annually renew the license issued
931	931	under this section by applying to the department and paying the annual fee for
932	932	growers established by the department under sub. (7).
933	933	(5) MEDICAL CANNABIS PROCESSOR CONTRACT, LICENSES. (a) Request for proposals;
934	934	number of licenses, contracts limited. 1. The department shall obtain and review
935	935	proposals from entities in this state to process medical cannabis products under this
936	936	section in accordance with the department's request-for-proposal procedures.
937	937	Except as provided under subd. 2., the department shall enter into a contract with
938	938	only one processor to process medical cannabis products in this state until there are
939	939	at least 50,000 patients included in the patient and caregiver registry under s.
940	940	259.04, after which the department may license and contract with as many
941	941	additional processors as necessary to process an adequate supply of medical
942	942	cannabis products to meet the demand of patients in this state.
943	943	2. A processor with which the department contracts under subd. 1. may
944	944	contract with one or more subcontractors to provide the processor's services. Each
945	945	subcontractor shall obtain a separate license under this subsection.
946	946	(b) License criteria. The department may issue a processor license to an
947	947	applicant only if the department determines that all of the following requirements
948	948	are met:
949	949	1. The applicant, or each principal officer or board member of the applicant, has
950	950	not been convicted of any crime, unless at least 10 years have passed since the
951	951	completion of any sentence imposed for the crime, including any period of
952	952	incarceration, parole, or extended supervision, and any period of probation imposed
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980	980	SECTION 19
981	981	ASSEMBLY BILL 1040
982	982	for the crime. The department, with the assistance of the department of justice, shall
983	983	conduct a background investigation of any applicant or each principal officer or board
984	984	member of any applicant who applies for a processor license under this subsection,
985	985	which shall include requiring all such persons to be fingerprinted on 2 fingerprint
986	986	cards each bearing a complete set of the person's fingerprints, or by other
987	987	technologies approved by law enforcement agencies. The department of justice shall
988	988	submit any such fingerprint cards to the federal bureau of investigation for the
989	989	purposes of verifying the identity of the person fingerprinted and obtaining records
990	990	of his or her criminal arrests and convictions.
991	991	2. The applicant, or each principal officer or board member of the applicant, is
992	992	at least 21 years of age.
993	993	3. The applicant pays the annual fee for processors established by the
994	994	department under sub. (7).
995	995	4. The applicant is a resident, or at least 80 percent of the principal officers or
996	996	board members of the applicant are residents.
997	997	5. The applicant submits to an inspection of the premises by the department,
998	998	and the premises meets all requirements established by the department under sub.
999	999	(2).
1000	1000	6. The applicant has entered into a contract under par. (a) 1. or 2.
1001	1001	(c) Authorized activities and requirements. 1. A licensed processor may obtain
1002	1002	cannabis from a licensed grower, process cannabis into medical cannabis products,
1003	1003	package and label medical cannabis products, transport cannabis or medical
1004	1004	cannabis products to or from any licensee, and transfer, transport, or sell medical
1005	1005	cannabis products to dispensaries.
1006	1006	2. A licensed processor may operate only within an enclosed, locked facility.
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1033	1033	SECTION 19 ASSEMBLY BILL 1040
1034	1034	3. A licensed processor shall process cannabis into medical cannabis products
1035	1035	in a manner that minimizes the products' appeal to individuals under the age of 18.
1036	1036	The department may establish, by rule, additional processing requirements.
1037	1037	4. Before selling, transferring, or transporting medical cannabis products to
1038	1038	any dispensary, a licensed processor shall do all of the following:
1039	1039	a. Provide samples of each lot of medical cannabis product that it processes to
1040	1040	a licensed laboratory and receive certified test results of those samples showing the
1041	1041	tetrahydrocannabinol content of the medical cannabis products and showing that
1042	1042	the medical cannabis products do not contain unsafe levels of any molds, pesticides,
1043	1043	heavy metals, or any other contaminant for which the department requires, by rule,
1044	1044	the medical cannabis products to be tested.
1045	1045	b. Package the medical cannabis products in child-resistant packaging and in
1046	1046	a manner that minimizes its appeal to individuals under the age of 18. The
1047	1047	department may establish, by rule, additional packaging requirements.
1048	1048	c. Attach a label to the packaging that identifies the tetrahydrocannabinol
1049	1049	content of the medical cannabis product and any other information required to be
1050	1050	included by the department by rule.
1051	1051	5. The packaging of medical cannabis products, and the labels attached to such
1052	1052	packaging, may not include any statement or other indication that the consumption
1053	1053	or use of medical cannabis may cure, mitigate, treat, or prevent any disease or
1054	1054	medical condition.
1055	1055	(d) License renewal. A licensed processor shall annually renew the license
1056	1056	issued under this section by applying to the department and paying the annual fee
1057	1057	for processors established by the department under sub. (7).
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1083	1083	JC/CH/MP/ES/MD:wlj/amn/cjs
1084	1084	SECTION 19
1085	1085	ASSEMBLY BILL 1040
1086	1086	(6) MEDICAL CANNABIS TESTING LABORATORY CONTRACT, LICENSES. (a) Request for
1087	1087	proposals; contract required. The department shall obtain and review proposals
1088	1088	from entities in this state to test medical cannabis products under this section in
1089	1089	accordance with the department's request-for-proposal procedures. The
1090	1090	department shall enter into contracts with a sufficient number of laboratories under
1091	1091	this section to assure the safety of medical cannabis products in this state.
1092	1092	(b) License criteria. The department shall issue a laboratory license to an
1093	1093	applicant if the department determines that all of the following requirements are
1094	1094	met:
1095	1095	1. The applicant, or each principal officer or board member of the applicant, has
1096	1096	not been convicted of any crime, unless at least 10 years have passed since the
1097	1097	completion of any sentence imposed for the crime, including any period of
1098	1098	incarceration, parole, or extended supervision, and any period of probation imposed
1099	1099	for the crime. The department, with the assistance of the department of justice, shall
1100	1100	conduct a background investigation of any applicant or each principal officer or board
1101	1101	member of any applicant who applies for a laboratory license under this section,
1102	1102	which shall include requiring all such persons to be fingerprinted on 2 fingerprint
1103	1103	cards each bearing a complete set of the person's fingerprints, or by other
1104	1104	technologies approved by law enforcement agencies. The department of justice shall
1105	1105	submit any such fingerprint cards to the federal bureau of investigation for the
1106	1106	purposes of verifying the identity of the person fingerprinted and obtaining records
1107	1107	of his or her criminal arrests and convictions.
1108	1108	2. The applicant, or each principal officer or board member of the applicant, is
1109	1109	at least 21 years of age.
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1135	1135	SECTION 19 ASSEMBLY BILL 1040
1136	1136	3. The applicant pays the annual fee for laboratories established by the
1137	1137	department under sub. (7).
1138	1138	4. The applicant is a resident, or at least 80 percent of the principal officers or
1139	1139	board members of the applicant are residents.
1140	1140	5. The applicant submits to an inspection of the premises by the department,
1141	1141	and the premises meets all requirements established by the department under sub.
1142	1142	(2).
1143	1143	6. The applicant has entered into a contract under par. (a).
1144	1144	(c) Authorized activities and requirements. 1. A licensed laboratory may obtain
1145	1145	medical cannabis products from a licensed processor, conduct testing on medical
1146	1146	cannabis products, and transport medical cannabis products to or from any licensee
1147	1147	or dispensary.
1148	1148	2. A licensed laboratory may operate only within an enclosed, locked facility.
1149	1149	3. When testing medical cannabis products, a licensed laboratory shall test the
1150	1150	products for tetrahydrocannabinol content and the levels of any molds, pesticides,
1151	1151	heavy metals, and any other contaminant for which the department requires, by
1152	1152	rule, the medical cannabis products to be tested.
1153	1153	(d) License renewal. A licensed laboratory shall annually renew the license
1154	1154	issued under this section by applying to the department and paying the annual fee
1155	1155	for laboratories established by the department under sub. (7).
1156	1156	(7) LICENSE FEES. (a) The department shall, not later than January 31 of each
1157	1157	year, propose an update to the fees required under subs. (4) (a) 2. and (c), (5) (b) 3.
1158	1158	and (d), and (6) (b) 3. and (d) to provide sufficient moneys to pay for the operations
1159	1159	of the department required under this section.
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1185	1185	JC/CH/MP/ES/MD:wlj/amn/cjs
1186	1186	SECTION 19
1187	1187	ASSEMBLY BILL 1040
1188	1188	(b) Not later than 14 days after proposing updated fees under par. (a), the
1189	1189	department shall send a report detailing the proposed fee adjustments to the
1190	1190	cochairpersons of the joint committee on finance. If, within 14 working days after
1191	1191	the date that the department submits the report, the cochairpersons of the
1192	1192	committee notify the secretary that the committee has scheduled a meeting for the
1193	1193	purpose of reviewing the proposed adjustments, the department may not impose the
1194	1194	fee adjustments unless the committee approves the report. If the cochairpersons of
1195	1195	the committee do not notify the secretary, the department may impose the fee
1196	1196	adjustments and shall notify licensees of the fee adjustments by posting the fee
1197	1197	adjustments on the department's website.
1198	1198	(c) If the joint committee on finance schedules a meeting for the purpose of
1199	1199	reviewing the proposed fee adjustments under par. (b) and disapproves the proposed
1200	1200	fee adjustments, the department may resubmit, no later than 60 days after the
1201	1201	committee disapproves the proposed adjustments and using the process described
1202	1202	under par. (b), proposed adjustments to the fees required under subs. (4) (a) 2. and
1203	1203	(c), (5) (b) 3. and (d), and (6) (b) 3. and (d) if necessary to provide sufficient moneys
1204	1204	to pay for the operations of the department required under this section. If the joint
1205	1205	committee on finance schedules a meeting for purposes of reviewing the resubmitted
1206	1206	proposed fee adjustments under this paragraph and disapproves the resubmitted
1207	1207	proposed fee adjustments, the department may not impose the fee adjustments and
1208	1208	may not resubmit further proposed fee adjustments until the department proposes
1209	1209	an update to the fees the following year as provided under par. (a).
1210	1210	(8) CONFIDENTIALITY. The department shall ensure that any of the following
1211	1211	information that is in the department's possession is confidential and not open to
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1236	1236	JC/CH/MP/ES/MD:wlj/amn/cjs
1237	1237	SECTION 19 ASSEMBLY BILL 1040
1238	1238	public inspection or copying under s. 19.35 (1), except that it shall be made available
1239	1239	to a law enforcement agency or law enforcement officer:
1240	1240	(a) Information relating to the locations of proposed or existing growers,
1241	1241	processors, and laboratories.
1242	1242	(b) Personal information relating to a licensee or applicant under this section,
1243	1243	other than the licensee's or applicant's name.
1244	1244	(c) Information obtained about a licensee or applicant as a result of any
1245	1245	criminal history search performed under this section.
1246	1246	(d) Any other information that could create a security risk if disclosed.
1247	1247	(9) ADVERTISING PROHIBITED. No licensed processor or laboratory may advertise
1248	1248	its services.
1249	1249	(10) ENFORCEMENT AND PENALTIES. (a) Enforcement. The department may
1250	1250	conduct investigations, hold hearings, and make findings as to whether a person has
1251	1251	violated any provisions of this section or any rule promulgated under this section.
1252	1252	If, after holding a public hearing, the department determines that a person has
1253	1253	violated any provision of this section or any rule promulgated under this section, the
1254	1254	department may impose a penalty pursuant to par. (b). If the department has reason
1255	1255	to believe that a person has engaged in activities for which a license is required under
1256	1256	this section without a license issued by the department, the department may petition
1257	1257	the circuit court for a temporary restraining order or an injunction as provided in ch.
1258	1258	813. The enforcement actions authorized under this paragraph are cumulative. The
1259	1259	imposition of an enforcement action does not bar the imposition of any other
1260	1260	enforcement action.
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1285	1285	JC/CH/MP/ES/MD:wlj/amn/cjs
1286	1286	SECTION 19
1287	1287	ASSEMBLY BILL 1040
1288	1288	(b) Penalties. 1. If the department determines that a licensee has negligently
1289	1289	violated this section, the department may establish, and the licensee shall comply
1290	1290	with, a plan to correct the negligent violation, which shall include all of the following:
1291	1291	a. A reasonable date by which the licensee is required to correct the negligent
1292	1292	violation.
1293	1293	b. A requirement that the licensee periodically report to the department on the
1294	1294	compliance of the licensee with the department's plan for a period of not less than the
1295	1295	following 2 years.
1296	1296	2. The department may suspend or revoke the license of any licensee that
1297	1297	violates any provision of this section or rules promulgated under this section.
1298	1298	3. a. Except as provided in subd. 3. b., any person who violates any provision
1299	1299	of this section or any rules promulgated under this section may be required to forfeit
1300	1300	not less than $200 nor more than $5,000 or, for an offense committed within 5 years
1301	1301	of an offense for which a penalty has been assessed under this section, may be
1302	1302	required to forfeit not less than $400 nor more than $10,000.
1303	1303	b. Any person who violates any provision of this section or any rules
1304	1304	promulgated under this section by fraud shall be fined not less than $2,000 nor more
1305	1305	than $10,000.
1306	1306	4. All of the remedies and penalties under this section shall be cumulative. No
1307	1307	action for recovery of one penalty shall be a bar to or affect the recovery of any other
1308	1308	penalty or be a bar to any criminal prosecution.
1309	1309	SECTION 20. 106.50 (1) of the statutes is amended to read:
1310	1310	106.50 (1) INTENT. It is the intent of this section to render unlawful
1311	1311	discrimination in housing. It is the declared policy of this state that all persons shall
1312	1312	have an equal opportunity for housing regardless of sex, race, color, sexual
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1339	1339	SECTION 20 ASSEMBLY BILL 1040
1340	1340	orientation, disability, religion, national origin, use of medical cannabis products, as
1341	1341	defined in s. 94.57 (1) (f), marital status, family status, status as a victim of domestic
1342	1342	abuse, sexual assault, or stalking, lawful source of income, age, or ancestry and it is
1343	1343	the duty of the political subdivisions to assist in the orderly prevention or removal
1344	1344	of all discrimination in housing through the powers granted under ss. 66.0125 and
1345	1345	66.1011. The legislature hereby extends the state law governing equal housing
1346	1346	opportunities to cover single-family residences that are owner-occupied. The
1347	1347	legislature finds that the sale and rental of single-family residences constitute a
1348	1348	significant portion of the housing business in this state and should be regulated.
1349	1349	This section shall be considered an exercise of the police powers of the state for the
1350	1350	protection of the welfare, health, peace, dignity, and human rights of the people of
1351	1351	this state.
1352	1352	SECTION 21. 106.50 (1m) (h) of the statutes is amended to read:
1353	1353	106.50 (1m) (h) “Discriminate" means to segregate, separate, exclude, or treat
1354	1354	a person or class of persons unequally in a manner described in sub. (2), (2m), or (2r)
1355	1355	because of sex, race, color, sexual orientation, disability, religion, national origin,
1356	1356	marital status, or family status,; status as a victim of domestic abuse, sexual assault,
1357	1357	or stalking,; whether the person is included on the patient and caregiver registry
1358	1358	under s. 259.04 or possesses or uses medical cannabis products in accordance with
1359	1359	ch. 259; lawful source of income,; age,; or ancestry.
1360	1360	SECTION 22. 106.50 (1m) (nm) of the statutes is amended to read:
1361	1361	106.50 (1m) (nm) “Member of a protected class" means a group of natural
1362	1362	persons, or a natural person, who may be categorized because of sex, race, color,
1363	1363	disability, sexual orientation, religion, national origin, use of medical cannabis
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1389	1389	JC/CH/MP/ES/MD:wlj/amn/cjs
1390	1390	SECTION 22
1391	1391	ASSEMBLY BILL 1040
1392	1392	products, as defined in s. 94.57 (1) (f), marital status, family status, status as a victim
1393	1393	of domestic abuse, sexual abuse, or stalking, lawful source of income, age, or ancestry.
1394	1394	SECTION 23. 106.50 (5m) (f) 1. of the statutes is amended to read:
1395	1395	106.50 (5m) (f) 1. Nothing in this section prohibits an owner or agent from
1396	1396	requiring that a person who seeks to buy or rent housing supply information
1397	1397	concerning family status, and marital, financial, and business status but not
1398	1398	concerning race, color, disability, sexual orientation, ancestry, national origin, use of
1399	1399	medical cannabis products, as defined in s. 94.57 (1) (f), religion, creed, status as a
1400	1400	victim of domestic abuse, sexual assault, or stalking, or, subject to subd. 2., age.
1401	1401	SECTION 24. 108.04 (5) (a) (intro.) of the statutes is amended to read:
1402	1402	108.04 (5) (a) (intro.) A violation by an employee of an employer's reasonable
1403	1403	written policy concerning the use of alcohol beverages, or use of a controlled
1404	1404	substance or a controlled substance analog, including a drug-free workplace policy
1405	1405	and a policy that includes testing for the presence of tetrahydrocannabinols, if the
1406	1406	employee:
1407	1407	SECTION 25. 111.32 (9m) of the statutes is created to read:
1408	1408	111.32 (9m) “Lawful product” does not include a medical cannabis product.
1409	1409	SECTION 26. 111.32 (12c) of the statutes is created to read:
1410	1410	111.32 (12c) “Medical cannabis product” has the meaning given in s. 94.57 (1)
1411	1411	(f).
1412	1412	SECTION 27. 111.34 (1) (b) of the statutes is amended to read:
1413	1413	111.34 (1) (b) Refusing Subject to sub. (3), refusing to reasonably accommodate
1414	1414	an employee's or prospective employee's disability unless the employer can
1415	1415	demonstrate that the accommodation would pose a hardship on the employer's
1416	1416	program, enterprise or business.
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1443	1443	SECTION 28 ASSEMBLY BILL 1040
1444	1444	SECTION 28. 111.34 (3) of the statutes is created to read:
1445	1445	111.34 (3) (a) Notwithstanding s. 111.322, this subchapter does not apply with
1446	1446	respect to any act of an employer based upon an individual's use of a medical
1447	1447	cannabis product, the individual's other use of cannabis, as defined in s. 94.57 (1) (a),
1448	1448	or the individual testing positive for the presence of tetrahydrocannabinols.
1449	1449	(b) Nothing in this subchapter requires an employer to permit, accommodate,
1450	1450	or allow the medical use of a medical cannabis product, or to modify any job or
1451	1451	working conditions of any employee who engages in the medical use of medical
1452	1452	cannabis products or who for any reason seeks to engage in the medical use of
1453	1453	medical cannabis products.
1454	1454	(c) Nothing in this subchapter prohibits an employer from refusing to hire,
1455	1455	terminating, discharging, disciplining, or otherwise discriminating against an
1456	1456	individual with respect to hiring, discharging, tenure, promotion, or compensation,
1457	1457	or in terms, conditions, or privileges of employment as a result, in whole or in part,
1458	1458	of the individual's medical use of a medical cannabis product, the individual's other
1459	1459	use of cannabis, as defined in s. 94.57 (1) (a), or the individual testing positive for the
1460	1460	presence of tetrahydrocannabinols, regardless of any impairment or lack of
1461	1461	impairment resulting therefrom.
1462	1462	SECTION 29. 175.60 (2) (b) of the statutes is amended to read:
1463	1463	175.60 (2) (b) The department may not impose conditions, limitations, or
1464	1464	requirements that are not expressly provided for in this section on the issuance,
1465	1465	scope, effect, or content of a license. The department may not refuse to issue or renew
1466	1466	a license, or may not suspend or revoke a license, solely because of an individual's
1467	1467	lawful use or possession of a medical cannabis product under s. 94.57 or ch. 259 or
1468	1468	because the individual is a registered patient, as defined in s. 961.01 (20hm).
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1496	1496	SECTION 30
1497	1497	ASSEMBLY BILL 1040
1498	1498	SECTION 30. 224.30 (6) of the statutes is created to read:
1499	1499	224.30 (6) PROVIDING FINANCIAL SERVICES TO LAWFUL CANNABIS-RELATED
1500	1500	BUSINESSES. (a) In this subsection, “financial institution” has the meaning given in
1501	1501	s. 943.80 (2).
1502	1502	(b) Neither the division nor the office of credit unions may take adverse action
1503	1503	against a financial institution or person acting on behalf of or providing services to
1504	1504	a financial institution solely on the basis that the financial institution or person
1505	1505	receives deposits, extends credit, conducts funds transfers, transports cash or other
1506	1506	financial instruments, or provides other financial services to a cannabis grower,
1507	1507	processor, or laboratory licensed under s. 94.57 or a medical cannabis dispensary
1508	1508	operating pursuant to s. 259.10.
1509	1509	SECTION 31. 224.77 (1) (o) of the statutes is amended to read:
1510	1510	224.77 (1) (o) In the course of practice as a mortgage banker, mortgage loan
1511	1511	originator, or mortgage broker, except in relation to housing designed to meet the
1512	1512	needs of elderly individuals, treat a person unequally solely because of sex, race,
1513	1513	color, handicap, sexual orientation, as defined in s. 111.32 (13m), religion, national
1514	1514	origin, use of medical cannabis products, as defined in s. 94.57 (1) (f), age, or ancestry,
1515	1515	the person's lawful source of income, or the sex, marital status, or status as a victim
1516	1516	of domestic abuse, sexual assault, or stalking, as defined in s. 106.50 (1m) (u), of the
1517	1517	person maintaining a household.
1518	1518	SECTION 32. 234.29 of the statutes is amended to read:
1519	1519	234.29 Equality of occupancy and employment. The authority shall
1520	1520	require that occupancy of housing projects assisted under this chapter be open to all
1521	1521	regardless of sex, race, use of medical cannabis products, as defined in s. 94.57 (1)
1522	1522	(f), religion, sexual orientation, status as a victim of domestic abuse, sexual assault,
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1549	1549	SECTION 32 ASSEMBLY BILL 1040
1550	1550	or stalking, as defined in s. 106.50 (1m) (u), or creed, and that contractors and
1551	1551	subcontractors engaged in the construction of economic development or housing
1552	1552	projects, shall provide an equal opportunity for employment, without discrimination
1553	1553	as to sex, race, religion, sexual orientation, or creed.
1554	1554	SECTION 33. Chapter 259 of the statutes is created to read:
1555	1555	CHAPTER 259
1556	1556	MEDICAL CANNABIS
1557	1557	259.01 Definitions. In this chapter:
1558	1558	(1) “Cannabis” has the meaning given for “marijuana” in s. 961.01 (14).
1559	1559	(1m) “Department” means the department of health services.
1560	1560	(2) “Dispensary” means an entity operated by the office to purchase packaged
1561	1561	and labeled medical cannabis products from a processor licensed under s. 94.57 (5)
1562	1562	and to sell medical cannabis products to patients and caregivers who hold a valid
1563	1563	registry identification card issued by the office.
1564	1564	(3) “Grower” has the meaning given in s. 94.57 (1) (b).
1565	1565	(4) “Laboratory” has the meaning given in s. 94.57 (1) (c).
1566	1566	(5) “Legal custody” has the meaning given in s. 767.001 (2).
1567	1567	(7) “Medical cannabis product” has the meaning given in s. 94.57 (1) (f).
1568	1568	(8) “Office” means the office of medical cannabis regulation.
1569	1569	(9) “Patient” means an individual who holds a valid registry identification card
1570	1570	under s. 259.04 to use medical cannabis products.
1571	1571	(10) “Pharmacist” has the meaning given in s. 450.01 (15).
1572	1572	(11) “Prescriber” means all of the following:
1573	1573	(a) An advanced practice nurse prescriber certified under s. 441.16 (2).
1574	1574	(b) A physician licensed under s. 448.02.
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1603	1603	ASSEMBLY BILL 1040
1604	1604	(c) A physician assistant licensed under s. 448.974.
1605	1605	(12) “Processor” has the meaning given in s. 94.57 (1) (g).
1606	1606	(13) “Resident” means an individual who maintains his or her place of
1607	1607	permanent abode in this state. Domiciliary intent is required to establish that a
1608	1608	person is maintaining his or her place of permanent abode in this state. Mere
1609	1609	ownership of property is not sufficient to establish domiciliary intent. Evidence of
1610	1610	domiciliary intent includes the location where the individual votes, pays personal
1611	1611	income taxes, or obtains a driver's license.
1612	1612	(14) “Residential care facility” means all of the following:
1613	1613	(a) A nursing home, as defined in s. 50.01 (3).
1614	1614	(b) An adult family home, as defined in s. 50.01 (1).
1615	1615	(c) A community-based residential facility, as defined in s. 50.01 (1g).
1616	1616	(d) A residential care apartment complex, as defined in s. 50.01 (6d).
1617	1617	(e) A hospice, as defined in s. 50.90 (1).
1618	1618	(f) A facility, as defined in s. 647.01 (4).
1619	1619	(g) A swing bed in an acute care facility or extended care facility, as specified
1620	1620	in 42 USC 1395tt.
1621	1621	(15) “Severe chronic pain” means pain that dominates the senses, that
1622	1622	interferes with the essential activities for daily living, that has persisted for at least
1623	1623	3 months, and that is not responsive to or appropriate for other therapies.
1624	1624	259.02 Possession and sale prohibited. No person may possess, sell,
1625	1625	transfer, or transport cannabis or medical cannabis products unless the person is
1626	1626	licensed under s. 94.57, the person holds a valid registry identification card issued
1627	1627	by the office under s. 259.04, or the person is an agent or employee of a dispensary
1628	1628	operating pursuant to s. 259.10.
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1655	1655	SECTION 33 ASSEMBLY BILL 1040
1656	1656	259.03 Office of medical cannabis regulation. (1) The office shall oversee
1657	1657	and regulate the dispensing of medical cannabis products.
1658	1658	(2) The office shall promulgate rules establishing safety and security
1659	1659	requirements for the premises of dispensaries that handle cannabis or medical
1660	1660	cannabis products.
1661	1661	(3) Annually, no later than October 15, the office shall submit a report to the
1662	1662	chief clerk of each house of the legislature for distribution to the legislature under
1663	1663	s. 13.172 (2) on the performance of the medical cannabis program under this chapter.
1664	1664	The report shall include information on all of the following:
1665	1665	(a) The number of patients included in the patient and caregiver registry under
1666	1666	s. 259.04.
1667	1667	(b) The medical conditions that have qualified patients for inclusion in the
1668	1668	patient and caregiver registry under s. 259.04 expressed as a total number and a
1669	1669	percentage of all the patients included on the patient and caregiver registry.
1670	1670	(c) The number of doses and type of medical cannabis products dispensed.
1671	1671	(d) The residency by county of patients who possess a valid patient registry
1672	1672	identification card under s. 259.04.
1673	1673	(e) The expenses and revenues of the program over the previous year, all funds
1674	1674	held in reserve for the program, and an estimation of the expenses and revenues of
1675	1675	the program over the following year.
1676	1676	(4) The office shall ensure that any information that is in the office's possession
1677	1677	and that could create a security risk if disclosed is confidential and not open to public
1678	1678	inspection or copying under s. 19.35 (1), except that it shall be made available to a
1679	1679	law enforcement agency or law enforcement officer.
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1706	1706	SECTION 33
1707	1707	ASSEMBLY BILL 1040
1708	1708	259.04 Patient and caregiver registry. (1) The office shall create and
1709	1709	maintain a registry that includes all patients and caregivers authorized to possess
1710	1710	medical cannabis products pursuant to this chapter. The registry shall be an
1711	1711	electronic system accessible online by authorized users. The office shall add an
1712	1712	individual as a patient to the registry, and issue the individual a registry
1713	1713	identification card and unique identification code, if the individual submits all of the
1714	1714	following:
1715	1715	(a) The individual's name, address, and contact information.
1716	1716	(b) Proof that the individual is a resident.
1717	1717	(c) Proof that the individual is at least 18 years of age or, if the individual is
1718	1718	under the age of 18, written consent from all parents or, if legal custody of the
1719	1719	individual has been awarded by a court, from all persons awarded legal custody of
1720	1720	the individual to be included in the patient and caregiver registry.
1721	1721	(d) If the individual has previously been convicted of a crime, proof that the
1722	1722	individual is not on parole, probation, or extended supervision.
1723	1723	(e) A written confirmation from a prescriber that the prescriber has established
1724	1724	a bona fide relationship with the individual, met with the individual in person,
1725	1725	reviewed the individual's health care records, performed any tests to identify the
1726	1726	presence of a medical condition to a reasonable degree of medical certainty, and
1727	1727	determined that the individual has at least one of the following medical conditions:
1728	1728	1. Cancer.
1729	1729	2. HIV or AIDS.
1730	1730	3. Seizures and epilepsy.
1731	1731	4. Post-traumatic stress disorder.
1732	1732	5. Alzheimer's disease.
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1759	1759	SECTION 33 ASSEMBLY BILL 1040
1760	1760	6. Glaucoma.
1761	1761	7. Severe chronic pain.
1762	1762	8. Severe chronic nausea.
1763	1763	9. Severe muscle spasms.
1764	1764	10. Parkinson's disease.
1765	1765	11. Multiple sclerosis.
1766	1766	12. Amyotrophic lateral sclerosis.
1767	1767	13. Chronic motor or vocal tic disorder.
1768	1768	14. Tourette syndrome.
1769	1769	15. Inflammatory bowel disease.
1770	1770	16. Any terminal illness with a probable life expectancy of less than one year.
1771	1771	(2) (a) Written confirmation from a prescriber under par. (b) or sub. (1) (e) is
1772	1772	valid for 2 years from the day that the prescriber determines the patient has or
1773	1773	continues to have at least one of the conditions described under sub. (1) (e).
1774	1774	(b) No earlier than 90 days prior to the expiration of the written confirmation
1775	1775	from a prescriber under this paragraph or sub. (1) (e), a patient may obtain and
1776	1776	submit written confirmation from a prescriber consistent with sub. (1) (e) that the
1777	1777	patient continues to have at least one of the conditions described under sub. (1) (e).
1778	1778	(3) At the time a patient applies to the office for inclusion on the patient and
1779	1779	caregiver registry under this section and annually thereafter, a patient shall pay a
1780	1780	fee of $100 or, if the patient qualifies for a hardship exception as determined by the
1781	1781	office, a fee of $50.
1782	1782	(4) If a patient is added to the registry under sub. (1) or submits written
1783	1783	confirmation that the patient continues to have at least one of the conditions
1784	1784	described under sub. (1) (e) consistent with sub. (2), the office shall record on the
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1812	1812	SECTION 33
1813	1813	ASSEMBLY BILL 1040
1814	1814	registry the prescriber who determined that the patient has or continues to have at
1815	1815	least one of the conditions described under sub. (1) (e) and the condition under sub.
1816	1816	(1) (e) that qualifies the patient for inclusion on the patient and caregiver registry.
1817	1817	(5) If an individual under the age of 18 is added to the registry and legal custody
1818	1818	of the individual has been awarded by a court, all person's awarded legal custody of
1819	1819	the individual shall inform any noncustodial parent of the individual that the
1820	1820	individual is included on the registry.
1821	1821	(6) (a) A patient included in the patient and caregiver registry under this
1822	1822	section may designate up to 3 caregivers who may purchase and possess medical
1823	1823	cannabis products on the patient's behalf, except as provided in par. (b). A caregiver
1824	1824	designated by a patient shall be included in the patient and caregiver registry under
1825	1825	this section and shall be issued a registry identification card that evidences their
1826	1826	inclusion as a caregiver in the registry.
1827	1827	(b) If a patient is under the age of 18, the office shall designate the patient's
1828	1828	parents or guardians as the patient's caregivers. The minor patient's parents or
1829	1829	guardians may designate one additional caregiver who may purchase and possess
1830	1830	medical cannabis products on the minor patient's behalf.
1831	1831	(c) No individual may act as a caregiver under this subsection unless the
1832	1832	individual is 21 years of age or older, is a resident, and has not been convicted of a
1833	1833	crime, unless at least 10 years have passed since the completion of any sentence
1834	1834	imposed for the crime, including any period of incarceration, parole, or extended
1835	1835	supervision, and any period of probation imposed for the crime.
1836	1836	(d) No individual may act as a caregiver under this section for more than 5
1837	1837	patients, except as provided in par. (e).
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1863	1863	SECTION 33 ASSEMBLY BILL 1040
1864	1864	(e) A patient who resides in a residential care facility may designate an
1865	1865	employee of the residential care facility as the patient's caregiver. The office shall
1866	1866	promulgate rules to establish reasonable limits on the number of patients for which
1867	1867	an employee of a residential care facility may be designated as a caregiver.
1868	1868	(f) Neither a patient nor any parent or guardian of a minor patient may
1869	1869	designate an individual as a caregiver for the patient unless the caregiver
1870	1870	affirmatively consents to act as the patient's caregiver and to be included on the
1871	1871	patient and caregiver registry.
1872	1872	(g) At the time a patient applies to the office for inclusion on the patient and
1873	1873	caregiver registry under this section and at any time that a patient submits written
1874	1874	confirmation from a prescriber consistent with sub. (1) (e) that the patient continues
1875	1875	to have at least one of the conditions described under sub. (1) (e), the patient shall
1876	1876	provide a complete list of caregivers designated by the patient. A complete list of
1877	1877	caregivers under this paragraph shall include the names and addresses of each
1878	1878	caregiver designated by the patient or, if the patient is a minor, a parent or guardian
1879	1879	of the patient and an affirmation that each caregiver has consented to act as the
1880	1880	patient's caregiver.
1881	1881	(h) A patient or, if the patient is a minor, a parent or guardian of a patient may
1882	1882	update the designated caregivers for the patient at any time by submitting to the
1883	1883	office an updated list of caregivers designated by the patient or, if the patient is a
1884	1884	minor, a parent or guardian of the patient. An updated list of caregivers under this
1885	1885	paragraph shall include the names and addresses of each caregiver designated by the
1886	1886	patient or, if the patient is a minor, a parent or guardian of the patient and an
1887	1887	affirmation that each caregiver has consented to act as the patient's caregiver.
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1911	1911	24 - 39 -2023 - 2024 Legislature
1912	1912	LRB-2858/2
1913	1913	JC/CH/MP/ES/MD:wlj/amn/cjs
1914	1914	SECTION 33
1915	1915	ASSEMBLY BILL 1040
1916	1916	(i) Before any caregiver is added to the patient and caregiver registry under this
1917	1917	subsection, the office, with the assistance of the department of justice, shall conduct
1918	1918	a background investigation of the caregiver. If the office determines that any
1919	1919	information obtained as a result of the background investigation provides a
1920	1920	reasonable basis for further investigation, the office may require the caregiver to be
1921	1921	fingerprinted on 2 fingerprint cards, each bearing a complete set of the applicant's
1922	1922	fingerprints, or by other technologies approved by law enforcement agencies. The
1923	1923	department of justice shall submit any such fingerprint cards to the federal bureau
1924	1924	of investigation for the purposes of verifying the identity of the caregiver and
1925	1925	obtaining records of his or her criminal arrests and convictions.
1926	1926	(j) Any individual who is a caregiver included on the patient and caregiver
1927	1927	registry under this subsection may revoke his or her consent to act as a patient's
1928	1928	caregiver at any time and remove himself or herself from the patient and caregiver
1929	1929	registry by submitting a written statement to the office that the individual no longer
1930	1930	consents to act as a caregiver for a patient under this subsection and wishes to be
1931	1931	removed from the patient and caregiver registry.
1932	1932	(7) (a) For purposes of this subsection, “patient's residence” includes a
1933	1933	temporary accommodation if the patient intends to or did stay at the temporary
1934	1934	accommodation overnight.
1935	1935	(b) A patient who holds a valid registry identification card under this section
1936	1936	may use medical cannabis products and may possess medical cannabis products only
1937	1937	at the patient's residence, between the dispensary from which the products were
1938	1938	purchased and the patient's residence, and between the patient's residences if the
1939	1939	patient has more than one residence.
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1963	1963	24 - 40 -2023 - 2024 Legislature LRB-2858/2
1964	1964	JC/CH/MP/ES/MD:wlj/amn/cjs
1965	1965	SECTION 33 ASSEMBLY BILL 1040
1966	1966	(c) A caregiver who holds a valid registry identification card under this section
1967	1967	may possess untampered and unopened medical cannabis products only at the
1968	1968	caregiver's residence, between the dispensary from which the products were
1969	1969	purchased and the caregiver's or the caregiver's patient's residence, and between the
1970	1970	caregiver's and the caregiver's patient's residence.
1971	1971	(d) A patient or caregiver who holds a valid registry identification card under
1972	1972	this section may acquire medical cannabis products only from a dispensary operating
1973	1973	pursuant to this chapter, and only in the amounts specified under s. 259.10 (5).
1974	1974	(8) The office shall remove a patient from the patient and caregiver registry
1975	1975	under this section if the office finds that any of the following has occurred:
1976	1976	(a) The patient has not paid the annual fee required under sub. (3).
1977	1977	(b) The patient fails to submit written confirmation that the patient continues
1978	1978	to have at least one of the conditions described under sub. (1) (e) prior to the
1979	1979	expiration of the written confirmation consistent with sub. (2).
1980	1980	(c) The patient has been convicted for a violation of the federal Controlled
1981	1981	Substances Act under 21 USC 801 to 971, the Uniform Controlled Substances Act
1982	1982	under ch. 961, or any controlled substances law of another state.
1983	1983	(d) The patient has been convicted of any felony.
1984	1984	(e) The patient has been found to have violated any provision of this chapter
1985	1985	or any rules promulgated under this chapter by fraud.
1986	1986	(f) The patient is no longer a resident.
1987	1987	(g) The patient voluntarily requests to be removed from the patient and
1988	1988	caregiver registry.
1989	1989	(9) The office shall remove a caregiver from the patient and caregiver registry
1990	1990	under this section if the office finds that any of the following has occurred:
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2013	2013	23
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2015	2015	25 - 41 -2023 - 2024 Legislature
2016	2016	LRB-2858/2
2017	2017	JC/CH/MP/ES/MD:wlj/amn/cjs
2018	2018	SECTION 33
2019	2019	ASSEMBLY BILL 1040
2020	2020	(a) The caregiver has been convicted of any crime.
2021	2021	(b) The caregiver has been found to have violated any provision of this chapter
2022	2022	or any rules promulgated under this chapter by fraud.
2023	2023	(c) The caregiver is no longer a resident.
2024	2024	(10) If a patient is removed from the patient and caregiver registry under this
2025	2025	section, the office shall remove any caregivers designated for that patient from the
2026	2026	patient and caregiver registry unless the caregiver is a caregiver for another patient
2027	2027	who is on the patient and caregiver registry under this section.
2028	2028	259.10 Medical cannabis dispensaries. (1) No person may sell or transfer
2029	2029	medical cannabis products to patients and caregivers except for a dispensary
2030	2030	operated by the office.
2031	2031	(2) The office shall establish 5 dispensaries in the state. In establishing
2032	2032	dispensaries in the state, the office shall place one dispensary in each of the 5 regions
2033	2033	that the department has established for data analysis and communication purposes.
2034	2034	(3) (a) Each dispensary may obtain packaged and labeled medical cannabis
2035	2035	products from processors licensed under s. 94.57 (5) and dispense medical cannabis
2036	2036	products consistent with this section.
2037	2037	(b) No dispensary may dispense medical cannabis products to any person
2038	2038	except for a patient or caregiver who presents photo identification and a valid
2039	2039	registry identification card issued by the office under s. 259.04. Before a dispensary
2040	2040	may dispense medical cannabis products to a patient or caregiver, the dispensary
2041	2041	shall confirm the patient or caregiver is included on the patient and caregiver
2042	2042	registry under s. 259.04 by searching the registry for the patient's or caregiver's
2043	2043	unique identification code.
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2067	2067	24 - 42 -2023 - 2024 Legislature LRB-2858/2
2068	2068	JC/CH/MP/ES/MD:wlj/amn/cjs
2069	2069	SECTION 33 ASSEMBLY BILL 1040
2070	2070	(4) Each dispensary shall be adequately staffed to advise patients and
2071	2071	caregivers on appropriate medical cannabis products to use or consume and
2072	2072	appropriate dosages. At a minimum, each dispensary shall have on staff at all times
2073	2073	at least one pharmacist who is qualified to advise patients and caregivers on
2074	2074	appropriate uses and dosages of medical cannabis products and potential
2075	2075	interactions between medical cannabis products and other drugs, as defined in s.
2076	2076	450.01 (10), that the patient uses.
2077	2077	(5) (a) Before a dispensary may dispense medical cannabis products to a
2078	2078	patient or the patient's caregiver, the dispensary shall direct a qualified pharmacist
2079	2079	who is employed by the dispensary to consult with the patient or the patient's
2080	2080	caregiver and review the patient's records under the prescription drug monitoring
2081	2081	program under s. 961.385. After consulting with the patient or the patient's
2082	2082	caregiver and reviewing the patient's records under the prescription drug
2083	2083	monitoring program, if the patient has never been dispensed medical cannabis
2084	2084	products in this state, the pharmacist shall recommend a daily dosage for the patient
2085	2085	and record the recommended daily dosage in the patient and caregiver registry
2086	2086	under s. 259.04. If the patient has previously been recommended a daily dosage, the
2087	2087	consulting pharmacist may update the patient's recommended daily dosage. If the
2088	2088	consulting pharmacist recommends an updated daily dosage for the patient, the
2089	2089	pharmacist shall record that updated recommendation in the patient and caregiver
2090	2090	registry under s. 259.04.
2091	2091	(b) A dispensary may dispense to a patient who has never been dispensed
2092	2092	medical cannabis products in this state or the patient's caregiver not more than a
2093	2093	30-day supply of medical cannabis products based on the dosage recommendation
2094	2094	made by a qualified pharmacist employed by a dispensary and recorded in the
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2119	2119	25 - 43 -2023 - 2024 Legislature
2120	2120	LRB-2858/2
2121	2121	JC/CH/MP/ES/MD:wlj/amn/cjs
2122	2122	SECTION 33
2123	2123	ASSEMBLY BILL 1040
2124	2124	patient and caregiver registry under s. 259.04. After dispensing to a patient an
2125	2125	initial 30-day supply of medical cannabis products, a dispensary may dispense not
2126	2126	more than a 90-day supply of medical cannabis products based on the most recent
2127	2127	dosage recommendation made by a qualified pharmacist employed by a dispensary
2128	2128	and recorded in the patient and caregiver registry under s. 259.04.
2129	2129	(c) No dispensary may dispense any medical cannabis products to a patient or
2130	2130	to a caregiver for a patient who, based on the amount of medical cannabis products
2131	2131	previously dispensed and the patient's recommended daily dosage, has or should
2132	2132	have more than a 7-day supply of medical cannabis products.
2133	2133	(d) A dispensary shall designate one or more employees to generate records for
2134	2134	the prescription drug monitoring program under s. 961.385 when a medical cannabis
2135	2135	product is dispensed to a patient or caregiver and to record the following information
2136	2136	in the registry when a medical cannabis product is dispensed to a patient or
2137	2137	caregiver:
2138	2138	1. The form and quantity of medical cannabis products dispensed.
2139	2139	2. The pharmacist who consulted with the patient or caregiver prior to
2140	2140	dispensing.
2141	2141	3. The individual to whom the medical cannabis products are dispensed.
2142	2142	4. The date the medical cannabis products are dispensed.
2143	2143	5. The estimated number of days of therapy that the dispensed medical
2144	2144	cannabis products may be used by the patient.
2145	2145	(6) The office shall promulgate rules to establish qualifications for pharmacists
2146	2146	to advise patients and caregivers at dispensaries under this section on appropriate
2147	2147	uses and dosages of medical cannabis products and potential interactions between
2148	2148	medical cannabis products and other drugs that the patient uses.
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2173	2173	25 - 44 -2023 - 2024 Legislature LRB-2858/2
2174	2174	JC/CH/MP/ES/MD:wlj/amn/cjs
2175	2175	SECTION 33 ASSEMBLY BILL 1040
2176	2176	(7) A dispensary, and any employee of a dispensary, may not make any
2177	2177	statement or other indication that the consumption or use of medical cannabis may
2178	2178	cure, mitigate, treat, or prevent any disease or medical condition.
2179	2179	259.15 Advertising prohibited. (1) No dispensary may advertise its
2180	2180	services.
2181	2181	(2) No prescriber may advertise that he or she may provide a written
2182	2182	confirmation under s. 259.04 (1) (e).
2183	2183	259.20 Sales prices. The office shall set the price of medical cannabis
2184	2184	products offered for sale at dispensaries. The office may set the price of medical
2185	2185	cannabis products only at a level sufficient to recoup product and operational costs.
2186	2186	The office may update prices under this subsection whenever the office determines
2187	2187	it is necessary.
2188	2188	259.25 Enforcement. (1) The office may conduct investigations, hold
2189	2189	hearings, and make findings as to whether a person has violated any provision of this
2190	2190	chapter or any rule promulgated under this chapter.
2191	2191	(2) If, after holding a public hearing, the office determines that a person has
2192	2192	violated any provision of this chapter or any rule promulgated under this chapter,
2193	2193	the office may impose a penalty pursuant to s. 259.30.
2194	2194	(3) If the office has reason to believe that a person has engaged in activities for
2195	2195	which a license is required without a license, the office may petition the circuit court
2196	2196	for a temporary restraining order or an injunction as provided in ch. 813.
2197	2197	(4) The enforcement actions permitted under this section are cumulative. The
2198	2198	imposition of an enforcement action may not bar the imposition of any other
2199	2199	enforcement action.
2200	2200	1
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2223	2223	24 - 45 -2023 - 2024 Legislature
2224	2224	LRB-2858/2
2225	2225	JC/CH/MP/ES/MD:wlj/amn/cjs
2226	2226	SECTION 33
2227	2227	ASSEMBLY BILL 1040
2228	2228	259.30 Penalties. (1) The office may remove a patient or caregiver from the
2229	2229	patient and caregiver registry if the office determines that the patient or caregiver
2230	2230	has intentionally possessed, used, sold, or transferred cannabis or medical cannabis
2231	2231	products in violation of this chapter or any rules promulgated under this chapter.
2232	2232	(2) (a) Any person who violates any provision of this chapter or any rules
2233	2233	promulgated under this chapter by fraud shall be fined not less than $2,000 nor more
2234	2234	than $10,000.
2235	2235	(b) Except as provided in par. (a), any person who violates any provision of this
2236	2236	chapter or any rules promulgated under this chapter may be required to forfeit not
2237	2237	less than $200 nor more than $5,000 or, for an offense committed within 5 years of
2238	2238	an offense for which a penalty has been assessed under this section, may be required
2239	2239	to forfeit not less than $400 nor more than $10,000.
2240	2240	(3) All of the remedies and penalties under this chapter shall be cumulative.
2241	2241	No action for recovery of one penalty shall be a bar to or affect the recovery of any
2242	2242	other penalty or be a bar to any criminal prosecution.
2243	2243	SECTION 34. 450.01 (16) (L) of the statutes is created to read:
2244	2244	450.01 (16) (L) Performing the duties specified in s. 259.10 as an employed
2245	2245	pharmacist of a medical cannabis dispensary.
2246	2246	SECTION 35. 450.03 (1) (eg) and (er) of the statutes are created to read:
2247	2247	450.03 (1) (eg) Any person acting within the scope of a valid grower license
2248	2248	under s. 94.57 (4), a valid processor license under s. 94.57 (5), or a valid laboratory
2249	2249	license under s. 94.57 (6).
2250	2250	(er) A medical cannabis dispensary operating pursuant to s. 259.10. This
2251	2251	paragraph does not apply to a person serving as a pharmacist in a medical cannabis
2252	2252	dispensary operating pursuant to s. 259.10.
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2277	2277	25 - 46 -2023 - 2024 Legislature LRB-2858/2
2278	2278	JC/CH/MP/ES/MD:wlj/amn/cjs
2279	2279	SECTION 36 ASSEMBLY BILL 1040
2280	2280	SECTION 36. 450.07 (1m) of the statutes is renumbered 450.07 (1m) (a).
2281	2281	SECTION 37. 450.07 (1m) (b) of the statutes is created to read:
2282	2282	450.07 (1m) (b) No license under this section is required for a dispensary
2283	2283	operating pursuant to s. 259.10 or a person acting within the scope of a valid grower
2284	2284	license under s. 94.57 (4), a valid processor license under s. 94.57 (5), or a valid
2285	2285	laboratory license under s. 94.57 (6).
2286	2286	SECTION 38. 450.071 (1) of the statutes is renumbered 450.071 (1) (a) and
2287	2287	amended to read:
2288	2288	450.071 (1) (a) No Except as provided in par. (b), no person may engage in the
2289	2289	wholesale distribution of a prescription drug in this state without obtaining a license
2290	2290	from the board for each facility from which the person distributes prescription drugs.
2291	2291	(b) 1. The board shall exempt from the licensure requirement under this section
2292	2292	a manufacturer that distributes prescription drugs or devices manufactured by the
2293	2293	manufacturer from licensing and other requirements under this section to the extent
2294	2294	the license or requirement is not required under federal law or regulation, unless the
2295	2295	board determines that it is necessary to apply a requirement to a manufacturer.
2296	2296	SECTION 39. 450.071 (1) (b) 2. of the statutes is created to read:
2297	2297	450.071 (1) (b) 2. No license under this section is required for a dispensary
2298	2298	operating pursuant to s. 259.10 or a person acting within the scope of a valid grower
2299	2299	license under s. 94.57 (4), a valid processor license under s. 94.57 (5), or a valid
2300	2300	laboratory license under s. 94.57 (6).
2301	2301	SECTION 40. 450.10 (2m) of the statutes is created to read:
2302	2302	450.10 (2m) No pharmacist may be found guilty of unprofessional conduct for
2303	2303	performing the duties specified in s. 259.10 as an employed pharmacist of a medical
2304	2304	cannabis dispensary.
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2309	2309	5
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2329	2329	25 - 47 -2023 - 2024 Legislature
2330	2330	LRB-2858/2
2331	2331	JC/CH/MP/ES/MD:wlj/amn/cjs
2332	2332	SECTION 41
2333	2333	ASSEMBLY BILL 1040
2334	2334	SECTION 41. 452.14 (3) (n) of the statutes is amended to read:
2335	2335	452.14 (3) (n) Treated any person unequally solely because of sex, race, color,
2336	2336	handicap, national origin, use of medical cannabis products, as defined in s. 94.57 (1)
2337	2337	(f), ancestry, marital status, lawful source of income, or status as a victim of domestic
2338	2338	abuse, sexual assault, or stalking, as defined in s. 106.50 (1m) (u).
2339	2339	SECTION 42. 767.445 of the statutes is created to read:
2340	2340	767.445 Medical cannabis. (1) In this section, “medical cannabis product”
2341	2341	has the meaning given in s. 94.57 (1) (f).
2342	2342	(2) A court may not consider lawful use or possession of medical cannabis
2343	2343	products under s. 94.57 or ch. 259 in determining custody or placement of a child
2344	2344	under this chapter, except in cases in which a child has access to the medical cannabis
2345	2345	products. A court may consider the unlawful use or possession of cannabis, as
2346	2346	defined in s. 94.57 (1) (a), in determining custody or placement of a child under this
2347	2347	chapter.
2348	2348	SECTION 43. 943.895 (4) of the statutes is renumbered 943.895 (4) (a).
2349	2349	SECTION 44. 943.895 (4) (b) of the statutes is created to read:
2350	2350	943.895 (4) (b) A financial institution or person acting on behalf of or providing
2351	2351	services to a financial institution does not violate this section solely by receiving
2352	2352	deposits, extending credit, conducting funds transfers, transporting cash or other
2353	2353	financial instruments, or providing other financial services to a cannabis grower,
2354	2354	processor, or laboratory licensed under s. 94.57 or a medical cannabis dispensary
2355	2355	operating pursuant to s. 259.10.
2356	2356	SECTION 45. 961.01 (3u) of the statutes is created to read:
2357	2357	1
2358	2358	2
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2379	2379	23 - 48 -2023 - 2024 Legislature LRB-2858/2
2380	2380	JC/CH/MP/ES/MD:wlj/amn/cjs
2381	2381	SECTION 45 ASSEMBLY BILL 1040
2382	2382	961.01 (3u) “Caregiver” means an individual who holds a valid registry
2383	2383	identification card under s. 259.04 to help a registered patient in his or her use or
2384	2384	acquisition of medical cannabis products.
2385	2385	SECTION 46. 961.01 (12q) of the statutes is created to read:
2386	2386	961.01 (12q) “Licensed entity” means a grower licensed under s. 94.57 (4), a
2387	2387	processor licensed under s. 94.57 (5), a laboratory licensed under s. 94.57 (6), or a
2388	2388	dispensary that is operating pursuant to s. 259.10.
2389	2389	SECTION 47. 961.01 (14g) of the statutes is created to read:
2390	2390	961.01 (14g) “Medical cannabis product” has the meaning given in s. 94.57 (1)
2391	2391	(f).
2392	2392	SECTION 48. 961.01 (20hm) of the statutes is created to read:
2393	2393	961.01 (20hm) “Registered patient" means an individual who holds a valid
2394	2394	registry identification card under s. 259.04 to use medical cannabis products.
2395	2395	SECTION 49. 961.01 (20t) of the statutes is created to read:
2396	2396	961.01 (20t) “Treatment team” means a registered patient and the registered
2397	2397	patient's caregivers if any.
2398	2398	SECTION 50. 961.33 of the statutes is created to read:
2399	2399	961.33 Medical cannabis. (1) POSSESSION, DISTRIBUTION, AND DELIVERY BY
2400	2400	TREATMENT TEAM. Notwithstanding s. 961.41 (1) (h), (1m) (h), or (3g) (e), a member
2401	2401	of a treatment team may possess medical cannabis products or distribute, deliver, or
2402	2402	possess with the intent to deliver medical cannabis products to another member of
2403	2403	the same registered patient's treatment team if all of the following apply:
2404	2404	(a) The possession, distribution, or delivery of the medical cannabis product is
2405	2405	for the use of a registered patient in accordance with ch. 259.
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2434	2434	(b) The medical cannabis product is obtained from a dispensary operating
2435	2435	pursuant to s. 259.10.
2436	2436	(c) The amount of medical cannabis product does not exceed the amount
2437	2437	specified under s. 259.10 (5) for each registered patient.
2438	2438	(d) The member of the treatment team has in the member's possession a valid
2439	2439	registry identification card issued under s. 259.04.
2440	2440	(e) The medical cannabis product is possessed at the residence of the registered
2441	2441	patient or possessed while the medical cannabis product is being transported to the
2442	2442	residence of the registered patient. Under this paragraph, “residence” includes a
2443	2443	temporary accommodation if the registered patient intends to or did stay overnight.
2444	2444	(2) LICENSED ENTITIES; AUTHORIZED ACTS. Notwithstanding s. 961.41 (1) (h), (1m)
2445	2445	(h), or (3g) (e), a licensed entity or an agent or employee of a licensed entity may
2446	2446	possess, manufacture, distribute, or deliver marijuana or medical cannabis products
2447	2447	or possess with the intent to manufacture, distribute, or deliver marijuana or
2448	2448	medical cannabis products if the licensed entity, agent, or employee is acting in the
2449	2449	usual course of his or her business or employment.
2450	2450	(3) PROSECUTION. (a) A member of a treatment team may not be prosecuted for
2451	2451	an offense under this chapter, or under an ordinance described in s. 59.54 (25) (a) or
2452	2452	66.0107 (1) (bm), for any of the following:
2453	2453	1. The possession, manufacture, distribution, or delivery of medical cannabis
2454	2454	products or possession with the intent to manufacture, distribute, or deliver medical
2455	2455	cannabis products if the person is acting in accordance with this section.
2456	2456	2. A violation of sub. (1) (d) or (e).
2457	2457	(b) A licensed entity or an agent or employee of a licensed entity may not be
2458	2458	prosecuted for a criminal offense under this chapter, or under an ordinance described
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2485	2485	SECTION 50 ASSEMBLY BILL 1040
2486	2486	in s. 59.54 (25) (a) or 66.0107 (1) (bm), for the possession, manufacture, distribution,
2487	2487	or delivery of marijuana or medical cannabis products or possession with the intent
2488	2488	to manufacture, distribute, or deliver marijuana or medical cannabis products if the
2489	2489	entity, agent, or employee is acting in the usual course of his or her business or
2490	2490	employment.
2491	2491	(c) A member of a treatment team who fails to comply with sub. (1) (d) is subject
2492	2492	to a forfeiture of $25, except that, if the member produces a registry identification
2493	2493	card within 72 hours after failing to comply, the member is not subject to the
2494	2494	forfeiture under this paragraph. No other penalty applies to a member of a
2495	2495	treatment team solely because of the member's failure to comply with sub. (1) (d).
2496	2496	(d) A member of a treatment team who fails to comply with sub. (1) (e) is subject
2497	2497	to a forfeiture of $25.
2498	2498	(4) EVIDENCE OF OTHER CRIMES NOT SUBJECT TO SUPPRESSION. If a search based
2499	2499	on probable cause of a violation of s. 961.41 (1) (h), (1m) (h), or (3g) (e), or an ordinance
2500	2500	described in s. 59.54 (25) (a) or 66.0107 (1) (bm), yields evidence of a crime other than
2501	2501	a violation of s. 961.41 (1) (h), (1m) (h), or (3g) (e), suppression of that evidence is not
2502	2502	required if the only grounds for suppression is the immunity granted under this
2503	2503	section.
2504	2504	SECTION 51. 961.38 (title) of the statutes is amended to read:
2505	2505	961.38 (title) Prescriptions and recommendations for medical use .
2506	2506	SECTION 52. 961.38 (1p) of the statutes is created to read:
2507	2507	961.38 (1p) A dispensary operating pursuant to s. 259.10 may dispense
2508	2508	medical cannabis products, as defined in s. 94.57 (1) (f), to registered patients and
2509	2509	caregivers in accordance with s. 259.10.
2510	2510	SECTION 53. 961.385 (1) (ae) of the statutes is amended to read:
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2540	2540	961.385 (1) (ae) “Deliver" or “delivery" means the actual, constructive, or
2541	2541	attempted transfer of a monitored prescription drug or a medical cannabis product
2542	2542	from one person to another.
2543	2543	SECTION 54. 961.385 (1) (af) of the statutes is renumbered 961.385 (1) (af)
2544	2544	(intro.) and amended to read:
2545	2545	961.385 (1) (af) (intro.) “Dispense" means to deliver do any of the following:
2546	2546	1. Deliver a monitored prescription drug pursuant to the lawful prescription
2547	2547	order of a practitioner, including the compounding, packaging, or labeling necessary
2548	2548	to prepare the monitored prescription drug for delivery.
2549	2549	SECTION 55. 961.385 (1) (af) 2. of the statutes is created to read:
2550	2550	961.385 (1) (af) 2. Deliver a medical cannabis product to a registered patient
2551	2551	or caregiver under s. 259.10.
2552	2552	SECTION 56. 961.385 (1) (aj) of the statutes is renumbered 961.385 (1) (aj)
2553	2553	(intro.) and amended to read:
2554	2554	961.385 (1) (aj) (intro.) “Patient" means an any of the following:
2555	2555	1. An individual or animal for whom a monitored prescription drug is
2556	2556	prescribed or to whom a monitored prescription drug is dispensed or administered.
2557	2557	SECTION 57. 961.385 (1) (aj) 2. of the statutes is created to read:
2558	2558	961.385 (1) (aj) 2. A registered patient.
2559	2559	SECTION 58. 961.385 (2) (intro.) of the statutes is amended to read:
2560	2560	961.385 (2) (intro.) The board shall establish by rule a program for monitoring
2561	2561	the dispensing of monitored prescription drugs and the dispensing of medical
2562	2562	cannabis products. The program shall do all of the following:
2563	2563	SECTION 59. 961.385 (2) (am) of the statutes is created to read:
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2589	2589	SECTION 59 ASSEMBLY BILL 1040
2590	2590	961.385 (2) (am) Require an individual designated under s. 259.10 (5) (d) to
2591	2591	generate a record documenting each dispensing of a medical cannabis product to a
2592	2592	registered patient or caregiver under s. 259.10.
2593	2593	SECTION 60. 961.385 (2) (b) of the statutes is amended to read:
2594	2594	961.385 (2) (b) Identify specific data elements to be contained in a record
2595	2595	documenting the dispensing of a monitored prescription drug, including the method
2596	2596	of payment and, subject to sub. (2m), the name recorded under s. 450.11 (1b) (bm).
2597	2597	(bm) In identifying specific data elements, the board shall under pars. (b) and
2598	2598	(bc), consider data elements identified by similar programs in other states and shall
2599	2599	ensure, to the extent possible, that records generated by the program are easily
2600	2600	shared with other states.
2601	2601	SECTION 61. 961.385 (2) (bc) of the statutes is created to read:
2602	2602	961.385 (2) (bc) Identify specific data elements to be contained in a record
2603	2603	documenting the dispensing of a medical cannabis product under s. 259.10.
2604	2604	SECTION 62. 961.385 (2) (cm) 3. a. of the statutes is amended to read:
2605	2605	961.385 (2) (cm) 3. a. The state board or agency, agency of another state, law
2606	2606	enforcement agency, or prosecutorial unit makes a written request for the record and
2607	2607	is engaged in an active and specific investigation or prosecution of a violation of any
2608	2608	state or federal law involving a monitored prescription drug or any state or federal
2609	2609	law involving marijuana, and the record being requested is reasonably related to
2610	2610	that investigation or prosecution.
2611	2611	SECTION 63. 961.385 (2) (ct) of the statutes is created to read:
2612	2612	961.385 (2) (ct) Require that a patient's records under the program be reviewed
2613	2613	before a medical cannabis product is dispensed under s. 259.10. The review required
2614	2614	under this paragraph shall be performed by a pharmacist described in s. 259.10.
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2644	2644	SECTION 64. 961.385 (2) (f) of the statutes is amended to read:
2645	2645	961.385 (2) (f) Permit the board to refer to the appropriate licensing or
2646	2646	regulatory board for discipline a pharmacist, pharmacy, or practitioner, or to the
2647	2647	office of medical cannabis regulation or the department of health services an
2648	2648	individual for purposes of enforcement of ch. 259, that fails to comply with rules
2649	2649	promulgated under this subsection, including by failure to generate a record that is
2650	2650	required by the program.
2651	2651	SECTION 65. 961.385 (3) (b) of the statutes is amended to read:
2652	2652	961.385 (3) (b) Nothing in this section may be construed to require a pharmacy
2653	2653	or pharmacist to obtain, before dispensing a monitored prescription drug or medical
2654	2654	cannabis product to a patient, information about the patient that has been collected
2655	2655	pursuant to the program established under sub. (2).
2656	2656	SECTION 66. 961.385 (5) (a) 2. of the statutes is amended to read:
2657	2657	961.385 (5) (a) 2. The program's impact on referrals of pharmacists,
2658	2658	pharmacies, and practitioners to licensing or regulatory boards, or to the office of
2659	2659	medical cannabis regulation or the department for discipline, for enforcement of ch.
2660	2660	259, and to law enforcement agencies for investigation and possible prosecution.
2661	2661	SECTION 67. 961.385 (6) (b) of the statutes is amended to read:
2662	2662	961.385 (6) (b) An assessment of the trends and changes in the use of monitored
2663	2663	prescription drugs and medical cannabis products in this state.
2664	2664	SECTION 68. 961.55 (8) (c) of the statutes is created to read:
2665	2665	961.55 (8) (c) A license described in s. 961.01 (12q).
2666	2666	SECTION 69. 961.571 (1) (b) 4. of the statutes is created to read:
2667	2667	961.571 (1) (b) 4. Objects used, designed for use, or primarily intended for use
2668	2668	by a registered patient in accordance with ch. 259.
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2695	2695	SECTION 70 ASSEMBLY BILL 1040
2696	2696	SECTION 70.0Nonstatutory provisions.
2697	2697	(1) INITIAL APPOINTMENT. The governor shall appoint a director to the office of
2698	2698	medical cannabis regulation under s. 15.194 (2) within 90 days following the effective
2699	2699	date of this subsection.
2700	2700	(2) INITIAL FEES.
2701	2701	(a) Beginning on the effective date of this paragraph until the department of
2702	2702	agriculture, trade and consumer protection determines the annual fee for grower
2703	2703	licenses under s. 94.57 (4) (a) 2. and (c), the annual fee for a grower license is $10,000.
2704	2704	(b) Beginning on the effective date of this paragraph until the department of
2705	2705	agriculture, trade and consumer protection determines the annual fee for processor
2706	2706	licenses under s. 94.57 (5) (b) 3. and (d), the annual fee for processor licenses is
2707	2707	$50,000.
2708	2708	(c) Beginning on the effective date of this paragraph until the department of
2709	2709	agriculture, trade and consumer protection determines the annual fee for laboratory
2710	2710	licenses under s. 94.57 (6) (b) 3. and (d), the annual fee for laboratory licences is
2711	2711	$5,000.
2712	2712	SECTION 71.0Effective date.
2713	2713	(1) This act takes effect on the first day of the 7th month beginning after
2714	2714	publication.
2715	2715	(END)
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