Bill > SB681

Introduced Session

This bill regulates hemp-derived cannabinoid products in the same manner as alcohol beverages are regulated under current law and renames the Division of Alcohol Beverages in the Department of Revenue as the Division of Intoxicating Products (division). The bill also makes minor changes relating to alcohol beverage warehouses and alcohol beverage production arrangements. Regulation of hemp-derived cannabinoid products Current law defines “hemp” as “the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9- tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis or the maximum concentration allowed under federal law up to 1 percent, whichever is greater, as tested using post-decarboxylation or other similarly reliable methods.” Current law exempts hemp from the definitions of marijuana and tetrahydrocannabinol (THC), which are controlled substances and the possession, manufacture, or distribution of which is a criminal offense. The bill defines “hemp-derived cannabinoid” as any cannabinoid that is extracted from hemp, including delta-6-THC, delta-8-THC, delta-9-THC, and delta- 10-THC, subject to certain exclusions. A “hemp-derived cannabinoid product” is defined, subject to limited exceptions, as a product that contains or is labeled to contain a hemp-derived cannabinoid (HDC) and that is produced, marketed, or LRB-5185/1 ARG&ZDW:emw&cjs 2025 - 2026 Legislature SENATE BILL 681 otherwise intended to be ingested orally, inhaled, or absorbed through the skin. The bill specifies that the definition of hemp includes an HDC product. The bill imposes various requirements and restrictions on the production, distribution, and sale of HDC products, many of which parallel requirements and restrictions applicable to the alcohol beverages industry. This regulation of HDC products includes the following: 1. Manufacturers and distributors of HDC products must hold permits issued by the division (discussed further in items 9 and 10). Retailers of HDC products must hold licenses issued by municipalities (discussed further in items 15 and 17). With exceptions, HDC products must be distributed and sold to consumers through a three-tier system in which manufacturers, distributors, and retailers operate independently (discussed further in item 19). The division regulates HDC products in a manner and with authority similar to that applicable under current law for the regulation of alcohol beverages. 2. HDC products may not be sold to a person under 21 years of age, and a person under 21 years of age may not possess or consume HDC products, even if the underage person is accompanied by a parent, guardian, or spouse who is at least 21 years of age. Before transferring possession of HDC products, a person authorized to sell HDC products at retail (discussed further in items 10 and 15 to 17) must verify the recipient’s age by examining identification containing the person’s photograph and date of birth or by using another age verification method authorized by the division. Generally, an underage person may not be on premises licensed for the sale of HDC products, but this prohibition is subject to the same exceptions that apply to premises licensed to sell alcohol beverages, including allowing an underage person to be present if accompanied by a parent, guardian, or spouse who is at least 21 years of age. 3. With limited exceptions, no product containing cannabinoids may be manufactured, transported, stored, or sold in Wisconsin unless the product is an HDC product and the HDC in the product is derived from a federally licensed or state-licensed hemp grower. The exceptions include a cannabidiol (CBD) product regulated under current law and a prescription drug product approved by the U.S. Food and Drug Administration. An HDC product may contain specified nonintoxicating cannabinoids. Although HDC products generally may be manufactured, transported, stored, sold, and consumed in Wisconsin, additional restrictions apply, including that they may not be packaged or mixed with an alcohol beverage, contain a controlled substance or caffeine in excess of 100 milligrams (mg) per serving, or be manufactured by applying an HDC to a commercially available candy or snack food item. 4. An HDC product may be sold only as a single-serving beverage, a multi- serving beverage, a tincture, an edible product, an inhalable product, or a product absorbed through the skin. There are specific requirements for the sale of HDC products in each form. For example, a single-serving beverage must be sold in a container with a capacity of not less than 50 milliliters nor more than 19.2 ounces and cannot contain more than 20 mg of THC. The maximum size container for a multi-serving beverage is 1.75 liters, and the HDC product cannot contain more LRB-5185/1 ARG&ZDW:emw&cjs 2025 - 2026 Legislature SENATE BILL 681 than 20 mg of THC per serving. For an edible product, each serving of the HDC product within the product packaging or container must be scored or wrapped or have another indicator clearly identifying the serving size, the HDC product cannot contain more than 20 mg of THC per serving, and the packaging or container cannot contain more than 40 servings. An inhalable HDC product in cartridge form cannot contain more than 800 mg of THC, and an inhalable HDC product in the form of hemp flower or hemp plant parts cannot be sold in a container having more than one ounce of the HDC product. 5. Before an HDC product may be sold in Wisconsin, the manufacturer must submit a product sample for testing by an independent laboratory and receive a certification that the product meets applicable standards, along with a certificate of analysis (COA) of testing results. The certification must, in part, confirm the product contains the amount of cannabinoids stated on the product label, disclosed as a percentage and as milligrams per serving and milligrams per container if there is more than one serving in the container. The manufacturer must provide the COA to the product’s distributor. An HDC product may not be sold in Wisconsin unless it is accompanied by a COA, which may be provided by a quick response (QR) code on the product’s label or packaging, essentially verifying that the product qualifies as hemp as defined above. 6. Before an HDC product may be sold in Wisconsin, it must be registered with the division. The division must maintain a public registry of HDC products, updated at least monthly, and an HDC product cannot be sold unless at the time of sale it is listed in the registry. 7. An HDC product may not be sold in Wisconsin unless it meets the following labeling requirements and the label is approved by the division. An HDC product must be labeled with specified information, including the name and contact information of the product’s manufacturer or brand owner; the product’s serving size, servings per container, and cannabinoid profile per serving and in total for the container; an ingredient list, including major food allergens; and the product’s potency, labeled as milligrams per serving, for total THC and for each HDC and the total amounts of THC and of each HDC in the product’s container. In addition to this information, an HDC product must include a warning statement containing all of the following information in substantially similar form: 1) keep out of the reach of children; 2) must be 21 or older to possess or consume; 3) may be harmful to those who are pregnant or breastfeeding; 4) may impair ability to drive or operate machinery; 5) may contain unidentified substances that are harmful or toxic; 6) this product is not approved by the FDA for cure, mitigation, treatment, or prevention of any disease; and 7) use of this product may result in a positive drug test. If the HDC product is intended to be inhaled, it must also include “WARNING: Inhalation of cannabis smoke has been associated with lung injury.” An HDC product label cannot make certain health-related claims. HDC product packaging cannot contain features likely to be appealing to children such as cartoon images and must be child resistant. An HDC product that is not a beverage must be placed in packaging that is opaque to an extent that the contents are not viewable. An HDC product must be placed in tamper-evident packaging or a tamper-evident LRB-5185/1 ARG&ZDW:emw&cjs 2025 - 2026 Legislature SENATE BILL 681 container or contain a tamper-evident seal. Each label for an HDC product must be submitted to the division for approval. If the division does not act on an application for approval within 30 days, the application is considered approved. The division may deny an application only if the label does not comply with the bill’s requirements. 8. A municipality or county may not prohibit 1) the possession or consumption of HDC products at a private residence; 2) the transportation of HDC products within the municipality or county; 3) personal use of HDC products, except with respect to location in certain circumstances; or 4) possession or transportation of HDC products by a distributor (discussed further in item 10). A municipality may enact an ordinance prohibiting certain alcohol beverage retailers and producers from making retail sales of HDC products in the municipality (discussed further in items 15 and 16). A municipality or county may also enact an ordinance prohibiting the possession, sale, or consumption of HDC products within 300 feet of a church, a hospital, a school, or certain other locations. A municipality may otherwise enact ordinances that prescribe additional regulations for the sale of HDC products but only if the ordinances are consistent with the municipality’s regulations for the sale of alcohol beverages. 9. The division issues manufacturers’ permits that authorize the permittee to 1) manufacture HDC products and package and label HDC products for sale; 2) sell finished and packaged HDC products to distributors and other manufacturers; 3) make hemp concentrate and refined cannabinoids if the manufacturer has obtained an endorsement from the division to do so; 4) purchase hemp concentrate and refined cannabinoids from, or sell them to, other manufacturers; and 5) engage in certain other activities. The bill defines “hemp concentrate” as the extracts or resins of hemp, including extracts or resins that are refined to increase the presence of targeted cannabinoids, but “hemp concentrate” does not include a refined cannabinoid. The bill defines, with exceptions, a “refined cannabinoid” as a cannabinoid extracted from hemp with a chemical makeup that is changed after extraction to create a different cannabinoid or other chemical compound by applying a catalyst other than heat or light, including any THC created from CBD or hemp concentrate. The bill imposes various requirements on manufacturers related to hemp concentrate and refined cannabinoids, including requiring a manufacturer to provide a COA and certain other information to the purchaser of hemp concentrate or refined cannabinoids and to transfer hemp concentrate or refined cannabinoids in tamper-evident containers labeled: UNFINISHED PRODUCT; NOT INTENDED FOR HUMAN CONSUMPTION IN THIS FORM.” The bill also imposes requirements on a manufacturer in transporting hemp concentrate and refined cannabinoids on public roadways. The bill also allows for the manufacture of HDC products through certain production arrangements, including contract production, alternating proprietorships, and licensing agreements. Each manufacturer’s permit must include an endorsement identifying any of the following forms of HDC product manufactured on the premises: beverage products; edible products; inhalable products; tinctures; or products absorbed through the skin. The endorsement must also indicate whether LRB-5185/1 ARG&ZDW:emw&cjs “WARNING: 2025 - 2026 Legislature SENATE BILL 681 hemp concentrate or refined cannabinoids are manufactured on the premises. A manufacturer may sell or deliver HDC products only to a distributor or another manufacturer, except that a manufacturer may make retail sales of HDC products on the manufacturing premises or at retail outlets in a manner similar to a brewer’s, winery’s, or distiller’s authorization to make retail sales under current law. The HDC products sold at retail must be manufactured by the manufacturer or purchased from a distributor. A manufacturer must also receive approval from the division and the applicable municipality before commencing sales of HDC products at a retail outlet. 10. The division issues distributors’ permits that authorize the permittee to 1) purchase, receive, and transport HDC products from manufacturers and out-of- state shippers (discussed further in item 11) and 2) sell, provide, and transport HDC products to other distributors and persons authorized to sell HDC products at retail (discussed further in items 15 to 17). A distributor may purchase HDC products only from another distributor or a manufacturer or out-of-state shipper that is the primary source of supply for the brand. A distributor must store all HDC products on the distributor’s premises or at its licensed warehouse (discussed further in item 12) in an area that is visually distinct from any area where other food or alcohol beverages are stored. A distributor must physically unload HDC products at its distributor’s premises or licensed warehouse before delivering them to another distributor or a person authorized to make retail sales. 11. The division issues out-of-state shippers’ permits that authorize a manufacturer or supplier in another state to ship HDC products to a Wisconsin distributor. A person may not ship HDC products into this state unless the person holds an out-of-state shipper’s permit and is the primary source of supply for the HDC products and the shipment is to a distributor. An out-of-state shipper must certify that all HDC products shipped into this state conform to the applicable requirements under the bill. The division also issues out-of-state ingredient suppliers’ permits that authorize a manufacturer or supplier in another state to ship or deliver hemp concentrate or refined cannabinoids to a Wisconsin manufacturer. A person may not ship or deliver into this state hemp concentrate or refined cannabinoids unless the person holds an out-of-state ingredient supplier’s permit and the hemp concentrate or refined cannabinoids are accompanied by a COA and labeled in a tamper-evident container as described in item 9 for a manufacturer. 12. The division issues warehouse permits that authorize the permittee to store and warehouse HDC products in warehouse premises, but the permits are not available to HDC product retailers. All HDC products stored on the premises of a warehouse permit must be stored in an area that is visually distinct from any area where other food or alcohol beverages are stored. The division may issue multiple permits for the same location, but each permittee's HDC products must be stored in areas that are visually distinct from any area where another permittee's HDC products are stored. 13. The division issues salespersons’ permits that authorize the permittee to solicit orders, and to engage in the sale, of HDC products for delivery at a future LRB-5185/1 ARG&ZDW:emw&cjs 2025 - 2026 Legislature SENATE BILL 681 date. An employer must inform the division of all employees who require an HDC salesperson’s permit, and the permit is canceled when the person’s employment terminates. A person who holds a liquor salesperson’s permit is not required to obtain an HDC products salesperson’s permit. 14. An applicant for an HDC product permit issued by the division is generally subject to the same qualification requirements that apply to an applicant for an alcohol beverage permit issued by the division, including requirements related to age, residency, and criminal history. 15. Under current law, municipalities issue Class “A” and Class “B” licenses. A Class "A" license authorize the retail sale of fermented malt beverages (beer) in original packages for consumption off the licensed premises. A Class "B" license authorizes the retail sale of beer for consumption on or off the licensed premises. The bill authorizes Class “A” and Class “B” licensees to also sell HDC products at retail in the same manner they sell beer. However, a municipality may, by ordinance, prohibit Class “A” and Class “B” licensees from making retail sales of HDC products. 16. Current law allows a brewer, winery, or distiller to make retail sales of alcohol beverages at its production facility and at full-service retail outlets. The bill authorizes brewers, wineries, and distillers to sell HDC products at retail at the same locations and in the same manner as they sell alcohol beverages at retail. However, a municipality may, by ordinance, prohibit brewers, wineries, and distillers from making retail sales of HDC products. 17. A municipality may issue Class “HDC-A” licenses authorizing the retail sale of HDC products for consumption off the premises where sold in original packages. A municipality may also issue Class “HDC-B” licenses authorizing the retail sale of HDC products for consumption on or off the premises where sold. However, a municipality may issue these retail HDC product licenses only if the governing body of the municipality enacts an ordinance allowing the municipality to do so. The ordinance may not impose additional burdens or requirements on HDC product licensees or on sales of HDC products that do not also apply to alcohol beverages. An applicant for an HDC product license is generally subject to the same qualification requirements that apply to an applicant for an alcohol beverage license, except the applicant is not required to complete a responsible beverage server training course. 18. Similar operating requirements apply to the retail sale of HDC products as apply to the retail sale of alcohol beverages. For example, retail sales of HDC products on licensed premises (including a manufacturer’s retail outlet) must be made by the licensee or a person who holds an operator’s license or permit (bartender’s license) or by a person who is at least 18 years of age and is under the immediate supervision of the licensee or person holding a bartender’s license. Class “HDC-A” and “HDC-B” licensed premises (and manufacturers’ retail outlets) are subject to the same closing and sales hours as Class “A” and Class “B” licensed premises under current law. A Class “HDC-A” or Class “HDC-B” license authorizes only face-to-face sales to consumers at the licensed premises. Subject to certain exceptions, a Class “HDC-B” license may not be granted for premises where other LRB-5185/1 ARG&ZDW:emw&cjs 2025 - 2026 Legislature SENATE BILL 681 business is conducted. An HDC product retailer may purchase HDC products only from an HDC product distributor and may not possess HDC products purchased from any person other than a distributor. A distributor may deliver HDC products to retailers only at their retail premises. Unlike alcohol beverages, however, the bill requires an HDC retailer to maintain all HDC products behind a barrier or at the point of sale unless the product is a beverage in a container with a capacity of at least four fluid ounces. 19. The bill includes restrictions on cross-tier ownership in the HDC products industry similar to those applicable to the alcohol beverage industry under current law, including similar exceptions. For example, an HDC product manufacturer may not have an interest in an HDC product distributor or retailer. Similar cross-tier ownership restrictions apply to distributors, out-of-state shippers, out-of-state ingredient suppliers, and retailers. However, there are exceptions for restricted investors and other situations similar to those applicable to the alcohol beverage industry under current law. These cross-tier ownership restrictions in the alcohol beverage industry are often referred to as the three-tier system. 20. A distributor of HDC products must charge the same price to all retail licensees making purchases in similar quantities. Any discount offered must be delivered in a single transaction and single delivery and on a single invoice. A retail licensee must also make purchases of HDC products from distributors for cash or credit of not more than 30 days and may not receive HDC products on consignment or on any basis other than a bona fide sale. 21. The bill creates, subject to various exceptions, restrictions on HDC product manufacturers and distributors furnishing things of value to Class “B” and Class “HDC-B” licensees, similar to the restrictions commonly known as “tied house laws” that apply under current law to brewers, beer wholesalers, and Class “B” beer retailers. Similar to current law in the beer industry, the bill also prohibits agreements in which a Class “B” or Class “HDC-B” licensee is required to purchase HDC products, exclusively, of a certain manufacturer. The bill also creates trade regulations prohibiting certain HDC product tying arrangements or retailer quotas. 22. Like beer distributors under current law, HDC product distributors may not sell or deliver a brand of HDC product unless the distributor has entered into a written agreement with the product’s supplier granting the distributor exclusive distribution rights for the brand in a designated sales territory. With limited exceptions, a distributor may not sell or deliver a brand of HDC products outside the distributor’s designated sales territory for the brand. 23. For purposes of the Wisconsin Fair Dealership Law, a dealership involving HDC products is defined as a contract or agreement between two or more persons by which a distributor of HDC products is granted the right to sell or distribute HDC products or use a trade name, trademark, advertising, or other commercial symbol related to HDC products. However, this definition does not apply if the distributor’s net revenues from the sale of all of the supplier’s brands of HDC products constitute less than 5 percent of the distributor’s total net revenues from the sale of HDC products. If this definition does not apply, then the general LRB-5185/1 ARG&ZDW:emw&cjs 2025 - 2026 Legislature SENATE BILL 681 definition of “dealership” under the WFDL, which requires a “community of interest,” may apply. 24. For one year after the bill’s effective date, small manufacturers of HDC products may organize a cooperative and obtain a distributor’s permit to act as a cooperative distributor of HDC products, similar to the manner in which intoxicating liquor producers may form as a cooperative distributor for intoxicating liquor under current law. An HDC product cooperative distributor may distribute only HDC products manufactured by its members, and its members cannot distribute HDC products through any other distributor. 25. The bill creates an occupational tax on HDC products similar to the occupational tax on alcohol beverages. Generally, the tax is paid by the HDC product distributor upon the sale of the HDC product to a retailer, and the tax rate depends on the type of HDC product sold. The tax rate for a beverage is $0.03 per mg of THC, and the tax rate for an HDC product that is not a beverage, hemp flower, or hemp plant parts is $0.045 per mg of THC. The tax rate for hemp flower or hemp plant parts is $50 per ounce of weight. This tax is in addition to the applicable sales tax on sales to consumers. 26. Under current law, a person may not operate a motor vehicle, an all- terrain vehicle, a utility terrain vehicle, an off-highway motorcycle, a snowmobile, or a motorboat if they have a detectable amount of a restricted controlled substance in their blood. Current law defines “restricted controlled substance,” as it applies to these restrictions, to include delta-9-THC at a concentration of one or more nanograms per milliliter of a person’s blood. The bill modifies those definitions of “restricted controlled substance” to remove the reference to delta-9-THC and instead include THC isomers at a total concentration of one or more nanograms per milliliter of a person’s blood. The bill also makes the same modification to the definition of a “restricted controlled substance” as it applies generally to the prosecution of crimes involving intoxicated use of vehicles and as it applies specifically to the crimes of homicide by intoxicated use of a vehicle and injury by intoxicated use of a vehicle. 27. The bill specifies that it does not 1) require an employer to permit or accommodate, or limit an employer’s ability to prohibit, an employee’s use or possession of HDC products at work or limit an employer’s ability to prohibit an employee from engaging in work-related activities while under the influence of HDC products or 2) require a property owner to permit or accommodate, or limit a property owner’s ability to prohibit, a person’s use or possession of HDC products on the property or limit a property owner’s ability to prohibit a person from being on the property while under the influence of HDC products. 28. The bill also contains other provisions treating HDC products in a manner similar to the manner in which alcohol beverages are treated under current law and treating the abuse of HDC products in a manner similar to the manner in which the abuse of alcohol beverages or controlled substances is treated under current law. Regulation of alcohol beverages Under current law, the division issues alcohol beverage warehouse permits that authorize the permittee to store alcohol beverages in warehouses. Under the LRB-5185/1 ARG&ZDW:emw&cjs 2025 - 2026 Legislature SENATE BILL 681 bill, the division may issue multiple permits for the same location, but each permittee's alcohol beverages must be stored in areas that are visually distinct from any area where another permittee's alcohol beverages are stored. Current law allows alcohol beverage producers, including brewers, wineries, and distillers, to enter into certain production arrangements, including contract production and licensing agreements. Generally, in a contract production arrangement, a “contract producer” directly manufactures, bottles, or labels alcohol beverages as an agent of a “recipe producer,” who purchases and receives the alcohol beverages from the contract producer. A “licensing agreement” involves the production, by an alcohol beverage producer, of alcohol beverages containing a licensor’s name, symbol, or trademark. The bill specifies that, in a contract production arrangement, a recipe producer is not required to hold more than one producer’s permit issued by the division. However, if contract production occurs at multiple locations, the recipe producer must provide a specified notice to the division of each location, other than the location for which the recipe producer’s producer’s permit is issued. The bill also specifies that the division is not required to inspect a recipe producer’s premises and modifies the meaning of the term “bottling” as it relates to contract production. In addition, the bill specifies that, in a licensing agreement, the licensor is not required to hold a permit issued by the division. Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report. For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

Committee Categories

Jesse James (R)*,  Brad Pfaff (D)*,  Cory Tomczyk (R)*,  Eric Wimberger (R)*,  Robert Brooks (R),  Alex Dallman (R),  Robert Donovan (R),  Brent Jacobson (R),  Dean Kaufert (R),  Clint Moses (R),  Jeff Mursau (R),  Amanda Nedweski (R),  Todd Novak (R),  William Penterman (R),  Pat Snyder (R),  David Steffen (R),  Rob Summerfield (R),  Rob Swearingen (R),  Duke Tucker (R),  Ron Tusler (R),  Robert Wittke (R), 

Fiscal estimate received (on 02/17/2026)

Official Document