The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB249, s. 1
1Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB249, s. 2
3Section
2. 20.566 (1) (gc) of the statutes is created to read:
AB249,4,24
20.566
(1) (gc)
Administration of cigarette and tobacco product direct
5marketing permits. From the moneys received from permits issued and penalties
6assessed under ss. 139.345, 139.40 (2), and 139.795, the amounts in the schedule for
1enforcing and administering cigarette and tobacco product direct marketing permits
2and penalties under ss. 139.345, 139.40 (2), and 139.795.
AB249, s. 3
3Section
3. 134.65 (1) of the statutes is amended to read:
AB249,4,114
134.65
(1) No person
, except a person who holds a valid permit under s. 139.345
5or 139.795 and whose business premises is not physically located in this state, shall
6in any manner, or upon any pretense, or by any device, directly or indirectly sell,
7expose for sale, possess with intent to sell, exchange, barter, dispose of or give away
8any cigarettes or tobacco products to any person not holding a license as herein
9provided or a permit under ss. 139.30 to 139.41 or 139.79 without first obtaining a
10license from the clerk of the city, village or town wherein such privilege is sought to
11be exercised.
AB249, s. 4
12Section
4. 134.65 (1r) of the statutes is created to read:
AB249,4,1413
134.65
(1r) (a) No license under sub. (1) may be issued to any person to whom
14any of the following applies:
AB249,4,1615
1. Subject to ss. 111.321, 111.322, and 111.335, the person has an arrest record
16or a conviction record.
AB249,4,1817
2. Subject to ss. 111.321, 111.322, and 111.335, the person has been convicted
18of a felony, or as a repeat or habitual offender, unless pardoned.
AB249,4,1919
3. The person has not submitted proof as provided under s. 77.61 (11).
AB249,4,2520
(b) The requirements under par. (a) apply to all partners of a partnership, all
21members of limited liability company, all agents of a limited liability company or
22corporation, and all officers of a corporation. Subject to ss. 111.321, 111.322, and
23111.335, if a business entity has been convicted of a crime, the entity may not be
24issued a license under sub. (1) unless the entity has terminated its relationship with
25the individuals whose actions directly contributed to the conviction.
AB249, s. 5
1Section
5. 134.65 (2) (a) of the statutes is amended to read:
AB249,5,72
134.65
(2) (a)
Except Subject to sub. (1r), and except as provided in par. (b),
3upon filing of a proper written application a license shall be issued on July 1 of each
4year or when applied for and continue in force until the following June 30 unless
5sooner revoked. The city, village or town may charge a fee for the license of not less
6than $5 nor more than $100 per year which shall be paid to the city, village or town
7treasurer before the license is issued.
AB249, s. 6
8Section
6. 134.65 (5) of the statutes is amended to read:
AB249,5,209
134.65
(5) Any person violating this section shall be fined not more than
$100 10$1,000 nor less than
$25 $500 for the first offense and
shall be fined not more than
11$200 $5,000 nor less than
$25 $1,000 or imprisoned not exceeding 180 days or both 12for the 2nd or subsequent offense.
If upon such 2nd or subsequent violation, the
13person so violating this section was personally guilty of a failure to exercise due care
14to prevent violation thereof, the person shall be fined not more than $300 nor less
15than $25 or imprisoned not exceeding 60 days or both. Conviction
on a 2nd or
16subsequent offense shall immediately terminate the license of the person convicted
17of being personally guilty of such failure to exercise due care and the person shall not
18be entitled to another license hereunder for a period of 5 years thereafter, nor shall
19the person in that period act as the servant or agent of a person licensed hereunder
20for the performance of the acts authorized by such license.
AB249, s. 7
21Section
7. 134.66 (1) (am) of the statutes is created to read:
AB249,5,2222
134.66
(1) (am) "Direct marketer" has the meaning given in s. 139.30 (2n).
AB249, s. 8
23Section
8. 134.66 (2) (a) of the statutes is amended to read:
AB249,6,724
134.66
(2) (a) No retailer,
direct marketer, manufacturer, distributor, jobber or
25subjobber, no agent, employee or independent contractor of a retailer,
direct
1marketer, manufacturer, distributor, jobber or subjobber and no agent or employee
2of an independent contractor may sell or provide for nominal or no consideration
3cigarettes or tobacco products to any person under the age of 18, except as provided
4in s. 254.92 (2) (a). A vending machine operator is not liable under this paragraph
5for the purchase of cigarettes or tobacco products from his or her vending machine
6by a person under the age of 18 if the vending machine operator was unaware of the
7purchase.
AB249, s. 9
8Section
9. 134.66 (2) (am) of the statutes is amended to read:
AB249,6,169
134.66
(2) (am) No retailer,
direct marketer, manufacturer, distributor, jobber,
10subjobber, no agent, employee or independent contractor of a retailer,
direct
11marketer, manufacturer, distributor, jobber or subjobber and no agent or employee
12of an independent contractor may provide for nominal or no consideration cigarettes
13or tobacco products to any person except in a place where no person younger than 18
14years of age is present or permitted to enter unless the person who is younger than
1518 years of age is accompanied by his or her parent or guardian or by his or her spouse
16who has attained the age of 18 years.
AB249, s. 10
17Section
10. 134.66 (2) (e) of the statutes is amended to read:
AB249,6,1918
134.66
(2) (e) No retailer
or direct marketer may sell cigarettes in a form other
19than as a package or container on which a stamp is affixed under s. 139.32 (1).
AB249, s. 11
20Section
11. 134.66 (3m) of the statutes is created to read:
AB249,6,2321
134.66
(3m) Defense of direct marketer. Proof of any of the following facts
22by a direct marketer who sells cigarettes or tobacco products to a person under the
23age of 18 is a defense to any prosecution for a violation under sub. (2) (a):
AB249,6,2524
(a) That the direct marketer used a mechanism, approved by the department
25of revenue, for verifying the age of the purchaser.
AB249,7,2
1(b) That the purchaser falsely represented that he or she had attained the age
2of 18 and presented a copy or facsimile of a government issued identification.
AB249,7,43
(c) That the name and birthdate of the purchaser, as indicated by the purchaser,
4matched the name and birthdate on the identification presented under par. (b).
AB249,7,75
(d) That the sale was made in good faith, in reasonable reliance on the
6mechanism described in par. (a) and the representation and identification under
7pars. (b) and (c), and in the belief that the purchaser had attained the age of 18.
AB249, s. 12
8Section
12. 139.30 (1m) of the statutes is created to read:
AB249,7,119
139.30
(1m) "Consumer" means any individual who receives cigarettes for his
10or her personal use or consumption or any individual who has title to or possession
11of cigarettes for any purpose other than for sale or resale.
AB249, s. 13
12Section
13. 139.30 (2n) of the statutes is created to read:
AB249,7,1413
139.30
(2n) "Direct marketer" means any person who solicits or sells cigarettes
14to consumers in this state by direct marketing.
AB249, s. 14
15Section
14. 139.30 (2p) of the statutes is created to read:
AB249,7,1916
139.30
(2p) "Direct marketing" means publishing or making accessible an offer
17for the sale of cigarettes to consumers in this state, or selling cigarettes to consumers
18in this state, using any means by which the consumer is not physically present at the
19time of sale on a premise that sells cigarettes.
AB249, s. 15
20Section
15. 139.30 (3) of the statutes is amended to read:
AB249,7,2521
139.30
(3) "Distributor" means any person who acquires unstamped cigarettes
22from the manufacturer thereof
or from the first importer of record thereof, affixes
23stamps to the packages or other containers, stores them and sells them to other
24permittees or to retailers for resale
or and who
acquires may acquire stamped
25cigarettes from another
permittee distributor for such sales.
AB249, s. 16
1Section
16. 139.30 (8s) of the statutes is created to read:
AB249,8,42
139.30
(8s) "Person" means any individual, sole proprietorship, partnership,
3limited liability company, corporation, or association, or any owner of a single-owner
4entity that is disregarded as a separate entity under ch. 71.
AB249, s. 17
5Section
17. 139.30 (10) of the statutes is amended to read:
AB249,8,86
139.30
(10) "Retailer" means any person who sells, exposes for sale or possesses
7with intent to sell to consumers any cigarettes
by any means in which the consumer
8is physically present at the time of sale on a premises that sells cigarettes.
AB249, s. 18
9Section
18. 139.32 (1) of the statutes is amended to read:
AB249,8,1610
139.32
(1) The tax imposed by s. 139.31 (1) shall be paid. To evidence the
11payment, the department shall provide stamps. A person who has paid the tax shall
12affix stamps of the proper denomination to each package in which cigarettes are
13packed, prior to the first sale within this state. First sale does not include a sale by
14a manufacturer to a distributor
or to a direct marketer or by a distributor to a
15permittee who has obtained department approval as provided for in s. 139.321 (1) (a)
162. The tax shall be paid only once on each package or container.
AB249, s. 19
17Section
19. 139.32 (4) of the statutes is repealed.
AB249, s. 20
18Section
20. 139.32 (5) of the statutes is amended to read:
AB249,8,2119
139.32
(5) Manufacturers
, direct marketers, and distributors having a permit
20from the secretary shall receive a discount of 1.6% of the tax
paid on stamp
21purchases.
AB249, s. 21
22Section
21. 139.32 (5m) of the statutes is amended to read:
AB249,8,2423
139.32
(5m) Distributors
, direct marketers, and manufacturers shall pay to
24the department the cost of printing and shipping those stamps.
AB249, s. 22
25Section
22. 139.32 (6) of the statutes is amended to read:
AB249,9,4
1139.32
(6) Manufacturers
, direct marketers, and distributors having a permit
2from the secretary may purchase stamps on credit. The secretary may require
3manufacturers
, direct marketers, and distributors who purchase stamps on credit
4to file under the conditions prescribed by the secretary by rule.
AB249, s. 23
5Section
23. 139.321 (1) (intro.) of the statutes is amended to read:
AB249,9,86
139.321
(1) (intro.) It is unlawful for any person to possess
in excess of 400 7cigarettes unless the required stamps are properly affixed as provided in ss. 139.32
8(1) and 139.33 (4).
AB249, s. 24
9Section
24. 139.321 (1) (a) 1. of the statutes is amended to read:
AB249,9,1110
139.321
(1) (a) 1. Manufacturers,
direct marketers, distributors or warehouse
11operators possessing valid permits issued by the secretary.
AB249, s. 25
12Section
25. 139.33 (3) of the statutes is amended to read:
AB249,9,2413
139.33
(3) No person other than
a member of the armed forces, as specified in
14this subsection, a licensed distributor
, or a licensed direct marketer may import into
15this state
more than 400 cigarettes on which the excise tax imposed by s. 139.31 has
16not been paid and the container of which does not bear proper stamps. Within 15
17days, any such person importing cigarettes shall file a declaration of such cigarettes
18imported and shall remit therewith the tax on such cigarettes imposed by this
19section. Members of the armed forces shall not be required to report or pay the tax
20on cigarettes in their possession if such cigarettes are issued to them by the U.S.
21government or any of its subdivisions or were purchased in any armed forces post
22exchange or service store. If the use tax imposed by this section is not paid when due,
23it shall become delinquent and the person liable for it shall pay, in addition, a penalty
24of $25 for each 200 cigarettes. Interest on the delinquent tax and penalty shall accrue
1at the rate of 1.5% per month or each fraction of a month from the date the tax became
2due until paid.
AB249, s. 26
3Section
26. 139.34 (1) (a) of the statutes is amended to read:
AB249,10,84
139.34
(1) (a) No person may manufacture cigarettes in this state or sell
5cigarettes in this state as a distributor, jobber, vending machine operator
, direct
6marketer, or multiple retailer and no person may operate a warehouse in this state
7for the storage of cigarettes for another person without first filing an application for
8and obtaining the proper permit to perform such operations from the department.
AB249, s. 27
9Section
27. 139.34 (1) (b) of the statutes is repealed.
AB249, s. 28
10Section
28. 139.34 (1) (c) (intro.) of the statutes is amended to read:
AB249,10,1211
139.34
(1) (c) (intro.)
Subject to ss. 111.321, 111.322 and 111.335, no No permit
12under this section may be granted to any person to whom any of the following applies:
AB249, s. 29
13Section
29. 139.34 (1) (c) 1. to 6. of the statutes are repealed.
AB249, s. 30
14Section
30. 139.34 (1) (c) 1m. of the statutes is created to read:
AB249,10,1615
139.34
(1) (c) 1m. Subject to ss. 111.321, 111.322, and 111.335, the person has
16an arrest record or a conviction record.
AB249, s. 31
17Section
31. 139.34 (1) (c) 2m. of the statutes is created to read:
AB249,10,1918
139.34
(1) (c) 2m. Subject to ss. 111.321, 111.322, and 111.335, the person has
19been convicted of a felony, or as a repeat or habitual offender, unless pardoned.
AB249, s. 32
20Section
32. 139.34 (1) (c) 3m. of the statutes is created to read:
AB249,10,2221
139.34
(1) (c) 3m. The person has not submitted proof as provided under s.
2277.61 (11).
AB249, s. 33
23Section
33. 139.34 (1) (cm) of the statutes is created to read:
AB249,11,524
139.34
(1) (cm) The requirements under par. (c) apply to all partners of a
25partnership, all members of limited liability company, all agents of a limited liability
1company or corporation, and all officers of a corporation. Subject to ss. 111.321,
2111.322, and 111.335, if a business entity has been convicted of a crime, the entity
3may not be issued a permit under this subsection unless the entity has terminated
4its relationship with the individuals whose actions directly contributed to the
5conviction.
AB249, s. 34
6Section
34. 139.34 (4) of the statutes is amended to read:
AB249,11,127
139.34
(4) A separate permit shall be required of and issued to each class of
8permittee and the holder of any permit shall perform only the operations thereby
9authorized. Such permit shall not be transferable from one person to another or from
10one premises to another. A separate permit shall be required for each place where
11cigarettes are stamped or where cigarettes are stored for sale at wholesale
or, 12through vending machines or multiple retail outlets
, or by direct marketing.
AB249, s. 35
13Section
35. 139.34 (6) of the statutes is amended to read:
AB249,11,1714
139.34
(6) A vending machine operator or a multiple retailer may acquire
15unstamped cigarettes
from the manufacturers thereof and affix the stamps to
16packages or other containers only if the vending machine operator or multiple
17retailer also holds a permit as a distributor
or direct marketer.
AB249, s. 36
18Section
36. 139.34 (8) of the statutes is amended to read:
AB249,11,2319
139.34
(8) The holder of a warehouse permit is entitled to store cigarettes on
20the premises described in the permit. The warehouse permit shall not authorize the
21holder to sell cigarettes. Unstamped cigarettes stored in a warehouse for a
22manufacturer
, direct marketer, or distributor may be delivered only to a person
23holding a permit as a manufacturer
, direct marketer, or distributor.
AB249, s. 37
24Section
37. 139.345 of the statutes is created to read:
AB249,12,6
1139.345 Direct marketing. (1) (a) No person may sell cigarettes to
2consumers in this state as a direct marketer or solicit sales of cigarettes to consumers
3in this state by direct marketing unless the person has obtained a permit from the
4department to make such sales or solicitations. The person shall file an application
5for a permit under this subsection with the department, in the manner prescribed
6by the department, and shall submit the following fee with the application:
AB249,12,87
1. If the person sells no more than 30,000 cigarettes annually to consumers in
8this state by direct marketing, $1,000.
AB249,12,109
2. If the person sells more than 30,000 but less than 600,001 cigarettes
10annually to consumers in this state by direct marketing, $5,000.
AB249,12,1211
3. If the person sells more than 600,000 cigarettes annually to consumers in
12this state by direct marketing, $10,000.
AB249,12,1313
(b) A permit issued under par. (a) expires on December 31 of each year.
AB249,12,2314
(c) The department may not issue a permit to a person under par. (a) unless the
15person certifies to the department that the person shall acquire stamped cigarettes
16from a licensed wholesaler or distributor or unstamped cigarettes from the
17manufacturer thereof or from the first importer of record thereof, pay the tax
18imposed under this subchapter on all unstamped cigarettes and affix stamps to the
19cigarette packages or containers as provided under s. 139.32 (1), store such packages
20or containers, and sell only such packages or containers to consumers in this state
21by direct marketing; or purchase cigarettes from a distributor, to the packages or
22containers of which stamps have been affixed as provided under s. 139.32 (1), and sell
23only such packages or containers to consumers in this state by direct marketing.
AB249,13,624
(d) No person may be issued a permit under this subsection unless the person
25certifies to the department, in the manner prescribed by the department, that all
1cigarette sales to consumers in this state shall be credit card or personal check
2transactions; that the invoices for all shipments of cigarette sales from the person
3shall bear the person's name and address and the permit number of the permit
4ultimately issued under this subsection; and that the person shall provide the
5department any information the department considers necessary to administer this
6section.
AB249,13,9
7(2) (a) No person may purchase tax stamps in excess of the number of cigarette
8sales specified in his or her permit under sub. (1) (a) unless the person pays the
9permit fee under sub. (1) (a) that is applicable to the excess amount.
AB249,13,1510
(b) No person may sell cigarettes in excess of the number of cigarette sales
11specified in his or her permit under sub. (1) (a) unless the person pays the permit fee
12under sub. (1) (a) that is applicable to the excess sales. Any person who sells
13cigarettes in excess of the number of cigarette sales specified in his or her permit
14shall pay a penalty to the department of $5,000 or an amount that is equal to $50 for
15every 200 cigarettes, or fraction of 200 cigarettes, whichever is greater.
AB249,13,19
16(3) (a) No person may sell cigarettes to consumers in this state by direct
17marketing unless the tax imposed under s. 139.31 (1) is paid on such cigarettes and
18stamps are affixed to the cigarette packages or containers as provided under s.
19139.32.
AB249,13,2120
(b) No person may sell cigarettes to consumers in this state by direct marketing
21unless the tax imposed under s. 77.52 or 77.53 is paid on the sale of such cigarettes.