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) A license under sub. (1) may only be issued to a person to whom all of the following apply:
1. Subject to ss. 111.321, 111.322, and 111.335, the person does not have an arrest record or a conviction record.
2. Unless pardoned, the person has not been convicted of a felony or as a habitual offender.
3. The person is the holder of a seller's permit or use tax registration certificate as required by this subchapter or has been informed by an employee of the department that the department will issue a seller's permit or use tax registration certificate to that person.
4. The person is 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 (1s) of the statutes is created to read:
134.65 (1s) (a) No corporation or limited liability company organized under the laws of this state or of any other state or foreign country may be issued a license under this section unless:
1. The entity first appoints an agent in the manner prescribed by the city, village, or town issuing the license. In addition to the qualifications under sub. (1r), the agent must, with respect to character, record and reputation, be satisfactory to the city, village, or town.
2. The entity vests in the agent, by properly authorized and executed written delegation, full authority and control of the premises described in the entity's license, and of the conduct of all business on the premises relative to the sale of cigarettes and tobacco products, that the licensee could have and exercise if it were a natural person.
(b) A corporation or limited liability company may cancel the appointment of an agent and appoint a successor agent to act in the agent's place, for the remainder of the license year or until another agent is appointed, as follows:
1. The successor agent shall meet the same qualifications required of the first appointed agent.
2. The entity shall immediately notify the city, village, or town, in writing, of the appointment of the successor agent and the reason for the cancellation and new appointment.
(c) A successor agent shall have all the authority, perform all the functions and be charged with all the duties of the previous agent of the corporation or limited liability company until the next regular or special meeting of the city, village, or town is held. However, the license of the corporation or limited liability company shall cease to be in force if, prior to the next regular or special meeting of the city, village, or town, the city, village, or town clerk receives notice of disapproval of the successor agent by a peace officer of the city, village, or town issuing the license.
(d) The license of the corporation or limited liability company shall not be in force after the next regular or special meeting of the city, village, or town unless and until the successor agent or another qualified agent is appointed and approved by the city, village, or town.
(e) The corporation or limited liability company shall, following the approval of each successor agent or another qualified agent by the city, village, or town, pay to the city, village, or town a fee of $10.
(f) If an agent appointed under this subsection resigns, he or she shall notify in writing the corporation or limited liability company and the city, village, or town issuing the license within 48 hours of the resignation.
SECTION 10. 134.65 (2) (a) of the statutes is amended to read:
134.65 (2) (a) Except Subject to subs. (1r) and (1s), 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 11. 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 12. 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 13. 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 14. 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 15. 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 16. 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 17. 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 18. 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 19. 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 20. 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 21. 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 22. 139.34 (1) (b) of the statutes is repealed.
SECTION 23. 139.34 (1) (c) (intro.) of the statutes is repealed and recreated to read:
139.34 (1) (c) (intro.) A permit under this section may only be issued to a person to whom all of the following apply:
SECTION 24. 139.34 (1) (c) 1. of the statutes is repealed.
SECTION 25. 139.34 (1) (c) 1m. of the statutes is created to read:
139.34 (1) (c) 1m. Subject to ss. 111.321, 111.322, and 111.335, the person does not have an arrest record or a conviction record.
SECTION 26. 139.34 (1) (c) 2. of the statutes is amended to read:
139.34 (1) (c) 2. The Unless pardoned, the person has not been convicted of a felony, unless pardoned or as a habitual offender.
SECTION 27. 139.34 (1) (c) 3. of the statutes is repealed.
SECTION 28. 139.34 (1) (c) 3m. of the statutes is created to read:
139.34 (1) (c) 3m. The person is the holder of a seller's permit or use tax registration certificate as required by this subchapter or has been informed by an employee of the department that the department will issue a seller's permit or use tax registration certificate to that person.
SECTION 29. 139.34 (1) (c) 4. of the statutes is repealed.
SECTION 30. 139.34 (1) (c) 4m. of the statutes is created to read:
139.34 (1) (c) 4m. The person is 18 years of age or older.
SECTION 31. 139.34 (1) (c) 5. of the statutes is repealed.
SECTION 32. 139.34 (1) (c) 6. of the statutes is repealed.
SECTION 33. 139.34 (1) (c) 7. of the statutes is renumbered 139.34 (1) (c) 5m.
SECTION 34. 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 35. 139.34 (1s) of the statutes is created to read:
139.34 (1s) (a) No corporation or limited liability company organized under the laws of this state or of any other state or foreign country may be issued a permit under this section unless:
1. The entity first appoints an agent in the manner prescribed by the department. In addition to the qualifications under sub. (1), the agent must, with respect to character, record and reputation, be satisfactory to the department.
2. The entity vests in the agent, by properly authorized and executed written delegation, full authority and control of the premises described in the entity's permit, and of the conduct of all business on the premises relative to the sale of cigarettes, that the permittee could have and exercise if it were a natural person.
(b) A corporation or limited liability company may cancel the appointment of an agent and appoint a successor agent to act in the agent's place, for the remainder of the permit year or until another agent is appointed, as follows:
1. The successor agent shall meet the same qualifications required of the first appointed agent.
