LRB-3826/1

RCT : eev : jm

2013 - 2014 LEGISLATURE

January 21, 2014 - Introduced by Representatives Vruwink , C. Taylor , Sargent ,

Milroy , Bewley , Goyke , Hulsey , Hebl , Wright , Kahl , Ohnstad and

Shankland , cosponsored by Senators Vinehout and Schultz . Referred to

Committee on Consumer Protection.

AB638,1,4 1 An Act to renumber and amend 961.55 (8); and to create 20.115 (7) (gc), 94.55,

2 961.32 (3) and 961.55 (8) (b) of the statutes; relating to: growing and

3 processing industrial hemp, granting rule-making authority, and making an

4 appropriation. 961.55 (8); and20.115 (7) (gc), 94.55,961.32 (3) and 961.55 (8) (b) of the statutes;

Analysis by the Legislative Reference Bureau

Current law places various restrictions on the possession, manufacture, and

delivery of controlled substances. One such controlled substance is

tetrahydrocannabinol (THC), including THC contained in or obtained from

marijuana. The controlled substances law defines marijuana as all parts of plants

of the genus Cannabis , whether growing or not, and most derivatives or preparations

of the plants (though it does not include, for instance, fiber produced from the stalks

or oil made from the seeds of the plants). THC is currently placed in the most

restrictive category of controlled substances: it may not be prescribed for medical use

and may be manufactured and possessed only for particular purposes (such as

research) under special permits.

This bill requires the Department of Agriculture, Trade and Consumer

Protection (DATCP) to issue licenses that authorize the growing and processing of

industrial hemp. Industrial hemp is defined as the plant Cannabis sativa with no

more than 0.3 percent THC. The bill requires an applicant for a license to provide

a legal description of the land on which industrial hemp will be grown or processed

and to pay a fee for the license. It also requires DATCP to obtain a criminal history

search from the state Department of Justice for each applicant and prohibits DATCP

from issuing a license to a person if the criminal history search shows the person has

been convicted of violating the controlled substances law. The bill requires reporting

by a person with an industrial hemp license, including reporting all sales of

industrial hemp. The bill also requires DATCP to promulgate rules for the

administration of the licensing law.

This bill creates an exemption from the controlled substances law for growing

or processing industrial hemp in conformity with a license issued by DATCP.

Growing and possessing the plant Cannabis is also prohibited by federal law,

except with a permit issued by the federal Drug Enforcement Administration. This

bill does not change federal law.

For further information see the state fiscal estimate, which will be printed as

an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do

enact as follows:

AB638,1 1 Section 1 . 20.115 (7) (gc) of the statutes is created to read: 20.115 (7) (gc) of the statutes is created to read:

AB638,2,3 2 20.115 (7) (gc) Industrial hemp. All moneys received under s. 94.55 for

3 regulation of growing and processing industrial hemp under s. 94.55. 20.115(gc)All moneys received under s. 94.55 forregulation of growing and processing industrial hemp under s. 94.55.

AB638,2 4 Section 2 . 94.55 of the statutes is created to read: 94.55 of the statutes is created to read:

AB638,2,7 5 94.55 Industrial hemp. (1) Definition. In this section, "industrial hemp"

6 means the plant Cannabis sativa having no more than 0.3 percent

7 tetrahydrocannabinol, including the seeds of that plant. In this section, "industrial hemp"means the plant Cannabis sativa having no more than 0.3 percenttetrahydrocannabinol, including the seeds of that plant.

AB638,2,10 8 (2) Licensing. (a) The department shall issue licenses that authorize growing,

9 processing, and, in conjunction with growing or processing, selling industrial hemp

10 for commercial purposes or research. (a) The department shall issue licenses that authorize growing,processing, and, in conjunction with growing or processing, selling industrial hempfor commercial purposes or research.

AB638,2,15 11 (b) A person applying for a license under this subsection shall provide the name

12 and address of the applicant and the legal description of the land on which industrial

13 hemp will be grown or processed and shall pay a fee equal to $150 or, if the person

14 will grow industrial hemp, the greater of $150 or $5 multiplied by the number of acres

15 on which the person will grow industrial hemp. (b) A person applying for a license under this subsection shall provide the nameand address of the applicant and the legal description of the land on which industrialhemp will be grown or processed and shall pay a fee equal to $150 or, if the personwill grow industrial hemp, the greater of $150 or $5 multiplied by the number of acreson which the person will grow industrial hemp.

AB638,3,3 1 (c) 1. The department shall obtain a criminal history search from the records

2 maintained by the department of justice for each person applying for initial licensure

3 under this subsection. (c) 1. The department shall obtain a criminal history search from the recordsmaintained by the department of justice for each person applying for initial licensureunder this subsection.

AB638,3,5 4 2. The department may not issue a license if the person has ever been convicted

5 of a violation of ch. 961 as indicated in the information obtained under subd. 1. 2. The department may not issue a license if the person has ever been convictedof a violation of ch. 961 as indicated in the information obtained under subd. 1.

AB638,3,7 6 3. Information obtained by the department under subd. 1. is confidential and

7 may be used only to determine eligibility for licensure. 3. Information obtained by the department under subd. 1. is confidential andmay be used only to determine eligibility for licensure.

AB638,3,8 8 (d) A license issued under this subsection is valid for one year. (d) A license issued under this subsection is valid for one year.

AB638,3,10 9 (3) Documentation and reporting requirements. (a) A licensee under sub. (2)

10 who grows industrial hemp shall provide all of the following to the department: (a) A licensee under sub. (2)who grows industrial hemp shall provide all of the following to the department:

AB638,3,12 11 1. Documentation showing that the seeds planted were of a variety certified to

12 have no more than 0.3 percent tetrahydrocannabinol. 1. Documentation showing that the seeds planted were of a variety certified tohave no more than 0.3 percent tetrahydrocannabinol.

AB638,3,13 13 2. A copy of any contract under which the licensee grows industrial hemp. 2. A copy of any contract under which the licensee grows industrial hemp.

AB638,3,16 14 (b) A licensee under sub. (2) shall report to the department the name and

15 address of each person to whom the licensee sells industrial hemp and the amount

16 of industrial hemp sold to each person. (b) A licensee under sub. (2) shall report to the department the name andaddress of each person to whom the licensee sells industrial hemp and the amountof industrial hemp sold to each person.

AB638,3,19 17 (4) Authority to import and sell seed. A person licensed under sub. (2) may

18 bring into this state and resell seed of varieties of industrial hemp that are certified

19 to have no more than 0.3 percent tetrahydrocannabinol. A person licensed under sub. (2) maybring into this state and resell seed of varieties of industrial hemp that are certifiedto have no more than 0.3 percent tetrahydrocannabinol.

AB638,3,21 20 (5) Rules. The department shall promulgate rules for the administration of

21 this section including rules concerning all of the following: The department shall promulgate rules for the administration ofthis section including rules concerning all of the following:

AB638,3,22 22 (a) Certifying industrial hemp seeds. (a) Certifying industrial hemp seeds.

AB638,3,23 23 (b) Testing plants during growth for tetrahydrocannabinol levels. (b) Testing plants during growth for tetrahydrocannabinol levels.

AB638,3,24 24 (c) Supervising the growing, harvesting, and processing of industrial hemp. (c) Supervising the growing, harvesting, and processing of industrial hemp.

AB638,3 25 Section 3 . 961.32 (3) of the statutes is created to read: 961.32 (3) of the statutes is created to read:

AB638,4,2 1 961.32 (3) (a) In this subsection, "industrial hemp" has the meaning given in

2 s. 94.55 (1). 961.32(a) In this subsection, "industrial hemp" has the meaning given ins. 94.55 (1).

AB638,4,8 3 (b) A person licensed by the department of agriculture, trade and consumer

4 protection under s. 94.55 (2), and an agent or employee of the person acting in the

5 usual course of the agent's or employee's business or employment, may plant,

6 cultivate, grow, harvest, process, possess, and deliver industrial hemp in this state

7 to the extent authorized by the person's license and in conformity with s. 94.55 and

8 the rules promulgated under that section. (b) A person licensed by the department of agriculture, trade and consumerprotection under s. 94.55 (2), and an agent or employee of the person acting in theusual course of the agent's or employee's business or employment, may plant,cultivate, grow, harvest, process, possess, and deliver industrial hemp in this stateto the extent authorized by the person's license and in conformity with s. 94.55 andthe rules promulgated under that section.

AB638,4 9 Section 4 . 961.55 (8) of the statutes is renumbered 961.55 (8) (intro.) and

10 amended to read: 961.55 (8) of the statutes is renumbered 961.55 (8) (intro.) andamended to read:

AB638,4,15 11 961.55 (8) (intro.) The failure, upon demand by any officer or employee

12 designated in s. 961.51 (1) or (2), of the person in occupancy or in control of land or

13 premises upon which the species of plants are growing or being stored, to produce an

14 one of the following constitutes authority for the seizure and forfeiture of the plants

15 described in sub. (7): 961.55(intro.) The failure, upon demand by any officer or employeedesignated in s. 961.51 (1) or (2), of the person in occupancy or in control of land orpremises upon which the species of plants are growing or being stored, to produce

AB638,4,17 16 (a) An appropriate federal registration, or proof that the person is the holder

17 thereof , constitutes authority for the seizure and forfeiture of the plants . appropriate federal registration, or proof that the person is the holderthereof

AB638,5 18 Section 5 . 961.55 (8) (b) of the statutes is created to read: 961.55 (8) (b) of the statutes is created to read: