Lawmakers in Wisconsin have introduced comprehensive legislation that would legalize both adult-use and medical cannabis while also regulating intoxicating hemp products under one unified framework.
Senate Bill 1045, authored by state Sens. LaTonya Johnson and Chris Larson of Milwaukee, represents one of the most expansive cannabis reform proposals introduced in the state in recent years. The measure would legalize cannabis for adults 21 and older, establish a regulated commercial marketplace, create a medical cannabis registry program, and impose structured tax policies across the supply chain.
What Senate Bill 1045 Would Do
If passed, S.B. 1045 would allow adults 21 and older to possess:
- Up to 2.5 ounces of cannabis flower in public
- Up to 2 pounds of cannabis in a private residence
- Up to 1 gram of THC in infused products
- Up to 15 grams of cannabis concentrate
- Up to 12 mature plants per household
The bill would also legalize medical cannabis for patients 18 and older, as well as minors with parental consent. The proposed medical program would be overseen by the Wisconsin Department of Health Services and include a registry system for patients with qualifying medical conditions such as cancer and post-traumatic stress disorder.
Currently, Wisconsin remains one of the few states without a medical cannabis program.
Regulating Intoxicating Hemp Products
In addition to marijuana legalization, the bill would address intoxicating hemp products, which currently operate without age restrictions under state law. The proposal would:
- Restrict intoxicating hemp products to those 21 and older
- Define potency limits at 1 to 10 milligrams of cannabinoids per serving (or per 12 fluid ounces for beverages)
- Regulate higher-potency products under the cannabis framework
The legislation also creates a category of “low-dose cannabis-infused products,” which would be subject to a 5% retail excise tax and could be sold outside of dispensaries.
Commercial Market Structure and Oversight
S.B. 1045 would establish a Division of Cannabis Regulation within the state’s Department of Agriculture, Trade, and Consumer Protection to oversee cultivation, processing, testing and transportation. Retail dispensaries and cannabis lounges would be licensed through the Department of Revenue.
Key licensing provisions include:
- $250 application fee plus background check costs
- $3,000 annual licensing fee
- 90-day Wisconsin residency requirement
- 50,000 square foot canopy cap for cultivators
- 20,000 square foot canopy cap for vertically integrated microbusinesses
Local municipalities would have the option to prohibit cannabis microbusinesses, dispensaries or lounges within their jurisdictions.
Proposed Tax Structure
The bill outlines a multi-stage tax system, including:
- 10% wholesale excise tax from cultivator to processor
- 10% wholesale excise tax from processor to retailer
- 5% retail excise tax on adult-use sales
- 3% retail excise tax on adult-use flower (earmarked for a Cannabis Research Fund)
- 10% occupational tax on microbusiness gross receipts
- Up to 5% local excise tax on retail sales
Revenue from the 3% flower tax would fund research into the public health impacts of cannabis consumption.
Political Landscape and Opposition
Democrats argue that Wisconsin is falling behind neighboring states such as Illinois, Michigan and Minnesota, all of which have legalized adult-use cannabis and established regulated markets.
Representative Amaad Rivera-Wagner, D-Green Bay, emphasized the economic argument behind legalization, noting that Wisconsin residents currently travel to neighboring states to purchase cannabis.
However, Republicans control both chambers of the Wisconsin Legislature, meaning the bill faces significant hurdles. GOP lawmakers previously introduced a narrower medical marijuana proposal in September 2025, which remains under debate.
While Democratic Gov. Tony Evers has previously included legalization proposals in his state budgets, the future of comprehensive reform will likely depend on bipartisan support.
What This Means for Cannabis Operators
If enacted, S.B. 1045 would create a fully regulated cannabis marketplace in Wisconsin, opening opportunities for cultivators, processors, retailers and microbusiness operators. It would also formalize compliance requirements around testing, packaging, taxation, and licensing – areas that often present operational challenges in newly legalized states.
For hemp operators currently navigating regulatory uncertainty, the proposal offers a potential pathway into a more stable, regulated cannabis market structure.
As the debate continues, cannabis businesses and ancillary service providers should monitor developments closely. Legislative momentum can shift quickly, and early preparation is often the difference between securing a license and missing the window.
Need Help Preparing for Cannabis Legalization in Wisconsin?
Regulatory frameworks move fast once legislation gains traction. From licensing strategy and tax structuring to operational compliance and seed-to-sale setup, early preparation can make all the difference.
Canna Business Services helps cannabis operators navigate complex regulatory environments with confidence. Whether you’re a hemp business looking to transition or an entrepreneur preparing to enter a newly legalized market, our team can guide you through licensing, compliance, SOP development, and ongoing operational support.
Contact Canna Business Services today to position your business for success in Wisconsin’s evolving cannabis market.
