100.20 (1n) It is an unfair method of competition or an unfair trade practice for any person to sell cigarettes to consumers in this state in violation of s. 139.345 or to sell tobacco products to consumers in this state in violation of s. 139.795.
SECTION 3. 100.30 (2) (c) 1. b. of the statutes is amended to read:
100.30 (2) (c) 1. b. For every person holding a permit as a bonded direct marketer as defined in s. 139.30 (1d), as a distributor as defined in s. 139.30 (3), or as a multiple retailer as defined in s. 139.30 (8), with respect to that portion of the person's business which involves the purchase and sale of cigarettes "cost to wholesaler" means the cost charged by the cigarette manufacturer, disregarding any manufacturer's discount or any discount under s. 139.32 (5), plus the amount of tax imposed under s. 139.31. Except for a sale at wholesale between wholesalers, a markup to cover a proportionate part of the cost of doing business shall be added to the cost to wholesaler. In the absence of proof of a lesser cost, this markup shall be 3% of the cost to wholesaler as set forth in this subd. 1. b.
SECTION 4. 100.30 (2) (L) (intro.) of the statutes is amended to read:
100.30 (2) (L) (intro.) "Wholesaler" includes every person holding a permit as a bonded direct marketer as defined in s. 139.30 (1d) or as a multiple retailer under s. 139.30 (8) and every person engaged in the business of making sales at wholesale, other than sales of motor vehicle fuel at wholesale, within this state except as follows:
SECTION 5. 100.30 (2) (L) 2. of the statutes is amended to read:
100.30 (2) (L) 2. In the case of a person holding a permit as a bonded direct marketer as defined in s. 139.30 (1d) or as a multiple retailer as defined in s. 139.30 (8), "wholesaler" applies to that portion of the person's business involving the purchase and sale of cigarettes and to any wholesale portion of that person's business.
SECTION 6. 134.65 (1) of the statutes is amended to read:
134.65 (1) No person shall in any manner, or upon any pretense, or by any device, directly or indirectly sell, expose for sale, possess with intent to sell, exchange, barter, dispose of or give away any cigarettes or tobacco products to any person not holding a license as herein provided or a permit under ss. 139.30 to 139.41 or, 139.79, or 139.795 without first obtaining a license from the clerk of the city, village, or town wherein such privilege is sought to be exercised. This subsection does not apply to a person who holds a valid permit under s. 139.345 or 139.795 and who sells cigarettes or tobacco products solely as a direct marketer.
SECTION 7. 134.65 (1n) of the statutes is created to read:
134.65 (1n) (a) The department of revenue shall prepare an application form for licenses issued under this section. In addition to the information required under sub. (1m), the form shall require all of the following information:
1. The applicant's history relevant to the applicant's fitness to hold a license under this section.
2. The kind of license for which the applicant is applying.
3. The premises where cigarettes or tobacco products will be sold or stored.
4. If the applicant is a corporation, the identity of the corporate officers and agent.
5. If the applicant is a limited liability company, the identity of the company members or managers and agent.
6. The applicant's trade name, if any.
7. Any other information required by the department.
(b) The department of revenue shall provide one copy of the application form prepared under this subsection to each city, village, and town.
(c) Each applicant for a license under this section shall use the application form prepared under this subsection.
(d) 1. Each application for a license under this section shall be sworn to by the applicant and the applicant shall submit the application with the clerk of the city, village, or town where the intended place of sale is located.
2. Within 10 days of any change in any fact set forth in an application, the applicant or license holder shall file a written description of the change with the clerk of the city, village, or town where the application was submitted.
3. Any person may inspect applications submitted under this paragraph. The clerk of each city, village, or town where such applications are submitted shall retain all applications submitted under this paragraph, but may destroy all applications that have been retained for 4 years or longer.
SECTION 8. 134.65 (1r) of the statutes is created to read:
134.65 (1r) (a) Subject to ss. 111.321, 111.322, and 111.335, no license under sub. (1) may be issued to any person to whom any of the following applies:
1. The person has an arrest record or a conviction record.
2. The person has been convicted of a felony, or as a repeat or habitual offender, unless pardoned.
3. The person has not submitted proof as provided under s. 77.61 (11).
4. The person is not 18 years of age or older.
(b) The requirements under par. (a) apply to all partners of a partnership, all members of limited liability company, all agents of a limited liability company or corporation, and all officers of a corporation. Subject to ss. 111.321, 111.322, and 111.335, if a business entity has been convicted of a crime, the entity may not be issued a license under sub. (1) unless the entity has terminated its relationship with the individuals whose actions directly contributed to the conviction.
SECTION 9. 134.65 (2) (a) of the statutes is amended to read:
134.65 (2) (a) Except Subject to sub. (1r), and except as provided in par. (b), upon filing of a proper written application a license shall be issued on July 1 of each year or when applied for and continue in force until the following June 30 unless sooner revoked. The city, village or town may charge a fee for the license of not less than $5 nor more than $100 per year which shall be paid to the city, village or town treasurer before the license is issued.
SECTION 10. 134.65 (5) of the statutes is renumbered 134.65 (5) (a) and amended to read:
134.65 (5) (a) Any Except as provided in par. (b), any person violating this section shall be fined not more than $100 $1,000 nor less than $25 $500 for the first offense and shall be fined not more than $200 $5,000 nor less than $25 $1,000 or imprisoned for not more than 180 days or both for the 2nd or subsequent offense. If upon such 2nd or subsequent violation, the person so violating this section was personally guilty of a failure to exercise due care to prevent violation thereof, the person shall be fined not more than $300 nor less than $25 or imprisoned not exceeding 60 days or both. Conviction Upon conviction of a 2nd or subsequent offense, the court shall immediately terminate the license of the person convicted of being personally guilty of such failure to exercise due care and the person shall not be entitled to another license hereunder for a period of 5 years thereafter, nor shall the person in that period act as the servant or agent of a person licensed hereunder for the performance of the acts authorized by such license.
SECTION 11. 134.65 (5) (b) of the statutes is created to read:
134.65 (5) (b) No penalty shall be imposed under par. (a) if any of the following apply:
1. The secretary of revenue determines that imposing a penalty would be inequitable because of inadvertent acts, mistakes, or unusual circumstances related to the violation.
2. The person who is subject to a penalty under par. (a) had good cause to violate this section, and such violation did not result from the person's neglect.
SECTION 12. 134.66 (2) (d) of the statutes is created to read:
134.66 (2) (d) No retailer, direct marketer, manufacturer, distributor, jobber or subjobber, no agent, employee or independent contractor of a retailer, direct marketer, manufacturer, distributor, jobber or subjobber, and no agent or employee of an independent contractor may provide cigarettes or tobacco products for nominal or no consideration to any person under the age of 18.
SECTION 13. 134.66 (3m) of the statutes is created to read:
134.66 (3m) DEFENSE OF DIRECT MARKETER. Proof of all of the following facts by a direct marketer who sells cigarettes or tobacco products to a person under the age of 18 is a defense to any prosecution for a violation under sub. (2) (a):
(a) That the direct marketer used a mechanism, approved by the department of revenue, for verifying the age of the purchaser.
(b) That the purchaser falsely represented that he or she had attained the age of 18 and presented a copy or facsimile of an identification card.
(c) That the name and birthdate of the purchaser, as indicated by the purchaser, matched the name and birthdate on the identification presented under par. (b).
(d) That the sale was made in good faith, in reasonable reliance on the mechanism described in par. (a) and the representation and identification under pars. (b) and (c), and in the belief that the purchaser had attained the age of 18.
SECTION 14. 139.30 (4n) of the statutes is repealed and recreated to read:
139.30 (4n) "Identification card" has the meaning given in s. 134.66 (1) (c).
SECTION 15. 139.30 (7) of the statutes is amended to read:
139.30 (7) "Manufacturer" means any person who directly manufactures cigarettes for the purpose of sale, including the authorized agent of a person who directly manufactures cigarettes for the purpose of sale.
SECTION 16. 139.30 (8s) of the statutes is created to read:
139.30 (8s) "Person" means any individual, sole proprietorship, partnership, limited liability company, corporation, or association, or any owner of a single-owner entity that is disregarded as a separate entity under ch. 71.
SECTION 17. 139.32 (4) of the statutes is amended to read:
139.32 (4) In lieu of stamps the secretary may authorize impressions applied by the use of meter machines. The secretary shall prescribe by rule the type of impression and the kind of machines which may be used.
SECTION 18. 139.321 (1) (intro.) of the statutes is amended to read:
139.321 (1) (intro.) It is unlawful for any person to purchase or possess cigarettes unless the required stamps are properly affixed as provided in ss. 139.32 (1) and 139.33 (4).
SECTION 19. 139.321 (1) (a) 1. of the statutes is amended to read:
139.321 (1) (a) 1. Manufacturers, bonded direct marketers, distributors or warehouse operators possessing valid permits issued by the secretary.
SECTION 20. 139.34 (1) (a) of the statutes is amended to read:
139.34 (1) (a) No person may manufacture cigarettes in this state or sell cigarettes in this state as a distributor, manufacturer, jobber, vending machine operator, direct marketer, or multiple retailer and no person may operate a warehouse in this state for the storage of cigarettes for another person without first filing an application for and obtaining the proper permit to perform such operations from the department.
SECTION 21. 139.34 (1) (b) of the statutes is repealed.
SECTION 22. 139.34 (1) (c) 1. of the statutes is repealed.
SECTION 23. 139.34 (1) (c) 1m. of the statutes is created to read:
139.34 (1) (c) 1m. The person has an arrest record or a conviction record.
SECTION 24. 139.34 (1) (c) 2. of the statutes is amended to read:
139.34 (1) (c) 2. The person has been convicted of a felony, or as a repeat or habitual offender, unless pardoned.
SECTION 25. 139.34 (1) (c) 3. of the statutes is repealed.
SECTION 26. 139.34 (1) (c) 4. of the statutes is repealed.
SECTION 27. 139.34 (1) (c) 4m. of the statutes is created to read:
139.34 (1) (c) 4m. The person is not 18 years of age or older.
SECTION 28. 139.34 (1) (c) 5. of the statutes is repealed.
SECTION 29. 139.34 (1) (c) 6. of the statutes is repealed.
SECTION 30. 139.34 (1) (c) 7. of the statutes is renumbered 139.34 (1) (c) 5m.
SECTION 31. 139.34 (1) (cm) of the statutes is created to read:
139.34 (1) (cm) The requirements under par. (c) apply to all partners of a partnership, all members of a limited liability company, all agents of a limited liability company or corporation, and all officers of a corporation.
SECTION 32. 139.34 (4) of the statutes is amended to read:
139.34 (4) A separate permit shall be required of and issued to each class of permittee and the holder of any permit shall perform only the operations thereby authorized. Such permit shall not be transferable from one person to another or from one premises to another. A separate permit shall be required for each place where cigarettes are stamped or where cigarettes are stored for sale at wholesale or, through vending machines or multiple retail outlets, or by direct marketing.
SECTION 33. 139.34 (6) of the statutes is amended to read:
139.34 (6) A vending machine operator or a multiple retailer may acquire unstamped cigarettes from the manufacturers thereof and affix the stamps to packages or other containers only if the vending machine operator or multiple retailer also holds a permit as a distributor or bonded direct marketer.
SECTION 34. 139.34 (8) of the statutes is amended to read:
139.34 (8) The holder of a warehouse permit is entitled to store cigarettes on the premises described in the permit. The warehouse permit shall not authorize the holder to sell cigarettes. Unstamped cigarettes stored in a warehouse for a manufacturer, bonded direct marketer, or distributor may be delivered only to a person holding a permit as a manufacturer or, distributor, or bonded direct marketer who is authorized by the department to purchase and affix tax stamps.
SECTION 35. 139.345 (1) (a) of the statutes is amended to read:
139.345 (1) (a) No person may sell cigarettes to consumers in this state as a direct marketer or solicit sales of cigarettes to consumers in this state by direct marketing unless the person submits to has obtained a permit from the department the person's name, trade name, address of the person's principal place of business, phone number, e-mail address, and Web site address to make such sales or solicitations. The person shall file an application for a permit under this subsection with the department, in the manner prescribed by the department.
SECTION 36. 139.345 (1) (b) of the statutes is amended to read:
139.345 (1) (b) No person may sell cigarettes as described under this section The department may not issue a permit to a person under par. (a) unless the person certifies to the department, in the manner prescribed by the department, that the person shall acquire stamped cigarettes from a licensed distributor or unstamped cigarettes from the manufacturer thereof, pay the tax imposed under this subchapter on all unstamped cigarettes and affix stamps to the cigarette packages or containers as provided under s. 139.32 (1), store such packages or containers, and sell only such packages or containers to consumers in this state by direct marketing; or acquire cigarettes from a distributor, to the packages or containers of which stamps have been affixed as provided under s. 139.32 (1), and sell only such packages or containers to consumers in this state by direct marketing.
SECTION 37. 139.345 (1) (d) of the statutes is amended to read:
139.345 (1) (d) No person may sell cigarettes as described in this section The department may not issue a permit to a person under par. (a) unless the person certifies to the department, in the manner prescribed by the department, that the person shall register with credit card and debit card companies; that the invoices and all means of solicitation for all shipments of cigarette sales from the person shall bear the person's name and address and the permit number of the permit ultimately issued under this subsection; and that the person shall provide the department any information the department considers necessary to administer this section.
SECTION 38. 139.345 (3) (intro.) of the statutes is amended to read:
139.345 (3) (intro.) No person may sell cigarettes to consumers a consumer in this state unless the person does all of the following:
