AB75: Bill Text

AB75,1274,24 139.32 (5) Manufacturers, bonded direct marketers, and distributors who are authorized by the department to purchase tax stamps shall receive a discount of 0.7 0.5 percent of the tax paid on stamp purchases.

AB75, s. 2336 Section 2336. 139.321 (1) (intro.) of the statutes is amended to read:

AB75,1275,3 139.321 (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).

AB75, s. 2337 Section 2337. 139.321 (1) (a) 1. of the statutes is amended to read:

AB75,1275,6 139.321 (1) (a) 1. Manufacturers, bonded direct marketers, distributors or warehouse operators possessing valid permits issued by the secretary.

AB75, s. 2338 Section 2338. 139.323 (3) of the statutes is amended to read:

AB75,1275,10 139.323 (3) The land on which the sale occurred was designated a reservation or trust land on or before January 1, 1983, or on a later date as determined by an agreement between the department and the tribal council.

AB75, s. 2339 Section 2339. 139.34 (1) (a) of the statutes is amended to read:

AB75,1275,17 139.34 (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.

AB75, s. 2340 Section 2340. 139.34 (1) (b) of the statutes is repealed.

AB75, s. 2341 Section 2341. 139.34 (1) (c) (intro.) of the statutes is repealed and recreated to read:

AB75,1275,22 139.34 (1) (c) (intro.) A permit under this section may only be issued to a person to whom all of the following apply:

AB75, s. 2342 Section 2342. 139.34 (1) (c) 1. of the statutes is repealed.

AB75, s. 2343 Section 2343. 139.34 (1) (c) 1m. of the statutes is created to read:

AB75,1276,2 139.34 (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.

AB75, s. 2344 Section 2344. 139.34 (1) (c) 2. of the statutes is amended to read:

AB75,1276,5 139.34 (1) (c) 2. The Unless pardoned, the person has not been convicted of a felony, unless pardoned or as a habitual offender.

AB75, s. 2345 Section 2345. 139.34 (1) (c) 3. of the statutes is repealed.

AB75, s. 2346 Section 2346. 139.34 (1) (c) 3m. of the statutes is created to read:

AB75,1276,11 139.34 (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.

AB75, s. 2347 Section 2347. 139.34 (1) (c) 4. of the statutes is repealed.

AB75, s. 2348 Section 2348. 139.34 (1) (c) 4m. of the statutes is created to read:

AB75,1276,14 139.34 (1) (c) 4m. The person is 18 years of age or older.

AB75, s. 2349 Section 2349. 139.34 (1) (c) 5. of the statutes is repealed.

AB75, s. 2350 Section 2350. 139.34 (1) (c) 6. of the statutes is repealed.

AB75, s. 2351 Section 2351. 139.34 (1) (c) 7. of the statutes is renumbered 139.34 (1) (c) 5m.

AB75, s. 2352 Section 2352. 139.34 (1) (cm) of the statutes is created to read:

AB75,1276,21 139.34 (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.

AB75, s. 2353 Section 2353. 139.34 (1s) of the statutes is created to read:

AB75,1276,25 139.34 (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:

AB75,1277,3 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.

AB75,1277,7 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.

AB75,1277,10 (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:

AB75,1277,12 1. The successor agent shall meet the same qualifications required of the first appointed agent.

AB75,1277,15 2. The entity shall immediately notify the department, in writing, of the appointment of the successor agent and the reason for the cancellation and new appointment.

AB75,1277,19 (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 department approves or disapproves of the successor agent.

AB75,1277,22 (d) The corporation or limited liability company shall, following the department's approval of each successor agent or another qualified agent, pay the department a fee of $10.

AB75,1277,25 (e) If an agent appointed under this subsection resigns, he or she shall notify in writing the corporation or limited liability company and the department within 48 hours of the resignation.

AB75, s. 2354 Section 2354. 139.34 (4) of the statutes is amended to read:

AB75,1278,7 139.34 (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.

AB75, s. 2355 Section 2355. 139.34 (6) of the statutes is amended to read:

AB75,1278,12 139.34 (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.

AB75, s. 2356 Section 2356. 139.34 (8) of the statutes is amended to read:

AB75,1278,19 139.34 (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.

AB75, s. 2357 Section 2357. 139.345 (1) (a) of the statutes is amended to read:

AB75,1279,2 139.345 (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 under s. 139.34 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.

AB75, s. 2358 Section 2358. 139.345 (1) (b) of the statutes is amended to read:

AB75,1279,14 139.345 (1) (b) No person may sell cigarettes as described under this section unless the person obtains a permit under par. (a) and 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.

AB75, s. 2359 Section 2359. 139.345 (1) (d) of the statutes is amended to read:

AB75,1279,23 139.345 (1) (d) No person may sell cigarettes as described in this section unless the person obtains a permit under par. (a) and 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.

AB75, s. 2360 Section 2360. 139.345 (3) (intro.) of the statutes is amended to read:

AB75,1280,2 139.345 (3) (intro.) No person may sell cigarettes to consumers a consumer in this state unless the person does all of the following:

AB75, s. 2361 Section 2361. 139.345 (3) (a) (intro.) of the statutes is amended to read:

AB75,1280,5 139.345 (3) (a) (intro.) Verifies the consumer's name identity and address and that the consumer is at least 18 years of age by any of the following methods:

AB75, s. 2362 Section 2362. 139.345 (3) (a) 2. of the statutes is amended to read:

AB75,1280,11 139.345 (3) (a) 2. The person receives from the consumer, at the time of purchase, a copy of a government issued an identification card and verifies that the name specified on the identification card matches the name of the consumer and that the birth date on the identification card indicates that the consumer is at least 18 years of age.

AB75, s. 2363 Section 2363. 139.345 (7) of the statutes is repealed.

AB75, s. 2364 Section 2364. 139.345 (8) of the statutes is created to read:

AB75,1280,17 139.345 (8) (a) No person may sell cigarettes to consumers in this state by direct marketing unless the tax imposed under s. 139.31 (1) is paid on the cigarettes and stamps are affixed to the cigarette packages or containers as provided under s. 139.32.

AB75,1280,21 (b) No person may sell cigarettes to consumers in this state by direct marketing unless the cigarette brands are approved by the department and listed in the directory of certified tobacco product manufacturers and brands as provided under s. 995.12 (2) (b).

AB75, s. 2365 Section 2365. 139.345 (9) of the statutes is created to read:

AB75,1281,2 139.345 (9) Except as provided in sub. (12), any person who, without having a valid permit under sub. (1), sells or solicits sales of cigarettes to consumers in this state by direct marketing shall pay a penalty to the department of $5,000 or an amount that is equal to $50 for every 200 cigarettes, or fraction of 200 cigarettes, sold to consumers in this state by direct marketing, whichever is greater.

AB75, s. 2366 Section 2366. 139.345 (10) of the statutes is created to read:

AB75,1281,6 139.345 (10) (a) No sale of cigarettes to a consumer in this state by direct marketing may exceed 10 cartons for each invoice or 20 cartons in a 30-day period for each purchaser or address.

AB75,1281,11 (b) Except as provided in sub. (12), any person who sells cigarettes in an amount that exceeds the amounts allowed under par. (a) shall pay a penalty to the department of $5,000 or an amount that is equal to $50 for every 200 cigarettes, or fraction of 200 cigarettes, sold in excess of the amounts allowed under par. (a), whichever is greater.

AB75,1281,16 (c) Except as provided in sub. (12), any person who purchases cigarettes in an amount that exceeds the amounts allowed under par. (a) shall apply for a permit under s. 139.34 and shall pay a penalty to the department of $25 for every 200 cigarettes, or fraction of 200 cigarettes, purchased in excess of the amounts allowed under par. (a).

AB75, s. 2367 Section 2367. 139.345 (11) of the statutes is created to read:

AB75,1282,2 139.345 (11) (a) Any nonresident or foreign direct marketer that has not registered to do business in this state as a foreign corporation or business entity shall, as a condition precedent to obtaining a permit under s. 139.34 (1), appoint and continually engage the services of an agent in this state to act as agent for the service of process on whom all processes, and any action or proceeding against it concerning or arising out of the enforcement of this chapter, may be served in any manner authorized by law. That service shall constitute legal and valid service of process on the direct marketer. The direct marketer shall provide the name, address, phone number, and proof of the appointment and availability of the agent to the department.

AB75,1282,10 (b) A direct marketer described under par. (a) shall provide notice to the department no later than 30 calendar days before termination of the authority of an agent under par. (a) and shall provide proof to the satisfaction of the department of the appointment of a new agent no later than 5 calendar days before the termination of an existing appointment. In the event an agent terminates an appointment, the direct marketer shall notify the department of that termination no later than 5 calendar days after the termination and shall include proof to the satisfaction of the department of the appointment of a new agent.

AB75,1282,14 (c) The secretary of state is the agent in this state for the service of process of any direct marketer who has not appointed and engaged an agent as provided under par. (a), except that the secretary of state acting as the direct marketer's agent for the service of process does not satisfy the requirements imposed by par. (a).

AB75, s. 2368 Section 2368. 139.345 (12) of the statutes is created to read:

AB75,1282,17 139.345 (12) No penalty shall be imposed under subs. (9) and (10) if any of the following apply:

AB75,1282,20 (a) The secretary of revenue determines that imposing a penalty would be inequitable because of inadvertent acts, mistakes, or unusual circumstances related to the violation.

AB75,1282,22 (b) The person who is subject to a penalty under sub. (9) or (10) had good cause to violate sub. (9) or (10), and such violation did not result from the person's neglect.

AB75, s. 2369 Section 2369. 139.37 (1) (a) of the statutes is amended to read:

AB75,1283,18 139.37 (1) (a) No person shall sell or cigarettes, take orders for cigarettes for resale, or solicit cigarette sales in this state for any manufacturer or permittee without first obtaining a unless the person has filed an application for and obtained a valid certificate under s. 73.03 (50) and a salesperson's permit from the department of revenue. No manufacturer or permittee shall authorize any person to sell or cigarettes, take orders for cigarettes, or solicit cigarette sales in this state without first having such person secure unless the person has filed an application for and obtained a valid certificate under s. 73.03 (50) and a salesperson's permit. No person shall authorize the sale of cigarettes or the solicitation of cigarette sales in this state unless the person has filed an application for and obtained a valid certificate under s. 73.03 (50) and a valid permit under s. 139.34. The department shall issue the required number of permits to manufacturers and permittees who hold a valid certificate issued under s. 73.03 (50). Each application for a salesperson's permit shall disclose the name and address of the employer or the person for whom the salesperson is selling or soliciting and such permit shall remain effective only while the salesperson represents such named employer or person. If such salesperson is thereafter employed by another manufacturer or permittee person, the salesperson shall obtain a new salesperson's permit. Each manufacturer and The permittee of any such salesperson shall notify the department within 10 days after the resignation or dismissal of any such the salesperson holding a permit.

AB75, s. 2370 Section 2370. 139.40 (1) of the statutes is amended to read:

AB75,1283,24 139.40 (1) All cigarettes acquired, owned, imported, possessed, kept, stored, made, sold, distributed or transported in violation of this chapter or s. 134.65, and all personal property used in connection therewith is unlawful property and subject to seizure by the secretary or any peace officer. All cigarettes seized for violating s. 139.31 (4) or (5) shall be destroyed, except as provided in sub. (2).

AB75, s. 2371 Section 2371. 139.40 (2) of the statutes is amended to read:

AB75,1284,10 139.40 (2) If cigarettes which do not bear the proper tax stamps or on which the tax has not been paid Cigarettes that are so seized they as provided under sub. (1) may be given to law enforcement officers to use in criminal investigations or sold to qualified buyers by the secretary, without notice. If the cigarettes are sold, after deducting the costs of the sale and the keeping of storing the property, the proceeds of the sale shall be paid into the state treasury. If the secretary finds that such cigarettes may deteriorate or become unfit for use in criminal investigations or for sale or that those uses would otherwise be impractical, the secretary may order them destroyed or give them to a charitable or penal institution for free distribution to patients or inmates.

AB75, s. 2372 Section 2372. 139.44 (1m) of the statutes is amended to read:

AB75,1284,14 139.44 (1m) Any person who falsely or fraudulently tampers with a cigarette meter tax impression machine or tax indicia in order to evade the tax under s. 139.31 is guilty of a Class G felony.

AB75, s. 2373 Section 2373. 139.44 (2) of the statutes is amended to read:

AB75,1284,19 139.44 (2) Any person who makes or signs any false or fraudulent report or who attempts to evade the tax imposed by s. 139.31 or 139.76, or who aids in or abets the evasion or attempted evasion of that tax may be fined not more than $10,000 or imprisoned for not more than 9 months or both, is guilty of a Class H felony.

AB75, s. 2374 Section 2374. 139.44 (3) of the statutes is amended to read:

AB75,1284,25 139.44 (3) Any permittee or licensee who fails to keep the records required by ss. 134.65, 139.30 to 139.42, or 139.77 to 139.82 shall be fined not less than $100 $500 nor more than $500 $1,000 for the first offense and shall be fined not less than $1,000 nor more than $5,000 or imprisoned not more than 6 months 180 days or both for a 2nd or subsequent offense.

AB75, s. 2375 Section 2375. 139.44 (4) of the statutes is amended to read:

AB75,1285,5 139.44 (4) Any person who refuses to permit the examination or inspection authorized in s. 139.39 (2) or 139.83 may be fined not more less than $500 nor more than $1,000 or imprisoned not more than 90 180 days or both. Such refusal shall be cause for immediate suspension or revocation of permit or license by the secretary.

AB75, s. 2376 Section 2376. 139.44 (5) of the statutes is amended to read: