A copy of the proposed rule [WM-29-00] and fiscal estimate may be obtained from Mr. Mytton at the address previously given.
Fiscal Estimate
There is no state fiscal effect. There are no local government costs.
Notice of Hearing
Revenue
Notice is hereby given that, pursuant to s. 227.11 (2) (a), Stats., and interpreting subchs. II and III of ch. 139, Stats., and s. 895.10, Stats., the Department of Revenue will hold a public hearing at the time and place indicated below, to consider the creation of s. Tax 9.69, Wis. Adm. Code, relating to the Master Settlement Agreement between the state of Wisconsin and tobacco product manufacturers.
Hearing Information
September 18, 2000 Room #207, GEF #3 Bldg.
Monday 125 South Webster St.
1:00 p.m. Madison, WI
Handicap access is available at the Butler Street entrance of the building.
Written Comments on the Rule
Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the Department at the hearing. Written comments may also be submitted to the contact person shown below no later than Monday, September 25, 2000, and will be given the same consideration as testimony presented at the hearing.
Contact Information
Mark Wipperfurth
Department of Revenue
125 S. Webster St.
P.O. Box 8933
Madison, WI 53708-8933
Telephone: (608) 266-8253
Analysis by the Dept. of Revenue
Statutory authority: ss. 227.24 and 895.10 (4)
Statutes interpreted: subchs. II and III of ch. 139, Stats., and s. 895.10, Stats.
Section 1. Section Tax 9.69 is created to describe methods and requirements relating to collecting, maintaining and reporting data, to ascertain the amount of Wisconsin excise tax paid each year on cigarettes of each tobacco product manufacturer that elects to place funds in a qualified escrow fund or, if the Department deems it appropriate, is a participating manufacturer under the Master Settlement Agreement. The information is necessary in order to be in compliance with 1999 Wis. Act 122, the model statute enacted as part of the Master Settlement Agreement with tobacco product manufacturers.
Text of Rule
SECTION 1. Tax 9.69 is created to read:
Tax 9.69 Master settlement agreement with tobacco product manufacturers. (1) PURPOSE. This section describes requirements and methods relating to collecting, maintaining and reporting data regarding the number of Wisconsin state cigarette excise tax stamps affixed to packages of cigarettes, and the amount of “roll-your-own" cigarette tobacco, sold in Wisconsin each year.
Note: The data collected, maintained and reported under this section shall be used to ascertain the amount of Wisconsin excise tax paid on the cigarettes of each tobacco product manufacturer that elects to place funds in a qualified escrow fund under s. 895.10, Stats., for each year, or, if the department deems it appropriate, is a participating manufacturer under the master settlement agreement between the state and tobacco product manufacturers, pursuant to 1999 Wis. Act 122.
(2) DEFINITIONS. In this section:
(a) “Cigarette" has the same meaning as in s. 895.10 (1) (d), Stats., and includes “roll-your-own" cigarette tobacco.
(b) “Master settlement agreement" has the same meaning as in s. 895.10 (1) (e), Stats.
(c) “Qualified escrow fund" has the same meaning as in s. 895.10 (1) (f), Stats.
(d) “Sell" or “sale" has the same meaning as in s. 139.30 (12), Stats.
(e) “Tobacco product manufacturer" has the same meaning as in s. 895.10 (1) (i), Stats., and includes both a cigarette manufacturer under subch. II of ch. 139, Stats., and a tobacco products manufacturer under subch. III of ch. 139, Stats., that sells “roll-your-own" cigarette tobacco.
(f) “Wisconsin consumer" means a consumer within this state, including a direct consumer, distributor, retailer or similar intermediary.
(3) REPORTING REQUIREMENT. (a) Every tobacco product manufacturer that elects to sell cigarettes to Wisconsin consumers shall, by the 15th day of each month, file a schedule with the department that reconciles the number of Wisconsin state cigarette excise tax stamps affixed to packages of cigarettes sold to Wisconsin consumers and the amount of “roll-your-own" cigarette tobacco sold to Wisconsin consumers in the previous calendar month.
(b) The schedule required under par. (a) shall contain all of the following information that is applicable:
1. A listing of each sale of cigarettes other than “roll-your-own" cigarette tobacco manufactured, or the name of the manufacturer of the cigarettes that were delivered to Wisconsin consumers, onto which state cigarette excise tax stamps were affixed.
2. A listing of each sale of “roll-your-own" cigarette tobacco manufactured, or the name of the manufacturer of the “roll-your-own" cigarette tobacco, that was delivered to Wisconsin consumers.
3. For each manufacturer listed pursuant to subd. 1., a listing of all brands of cigarettes sold and the number of Wisconsin state cigarette excise tax stamps affixed to cigarette packages with respect to each brand.
4. For each brand of cigarettes listed for each manufacturer pursuant to subd. 3., the following additional information, if known:
a. The name of the manufacturer of the cigarettes.
b. The name of the person or entity first responsible for the cigarettes being designated or identified for sale in the United States.
5. For each sale of “roll-your-own" cigarette tobacco listed for each manufacturer pursuant to subd. 2., the following additional information, if known:
a. The name of the manufacturer of the “roll-your-own" cigarette tobacco.
b. The name of the person or entity first responsible for the “roll-your-own" cigarette tobacco being designated or identified for sale in the United States, by brand.
6. Any other information the department may deem necessary to administer the provisions of this section.
(4) ESCROW FUND CERTIFICATION REQUIREMENTS. (a) Every tobacco product manufacturer that is not a participating manufacturer under the master settlement agreement shall by April 15 of each year certify to the department and to the attorney general that the amounts required under s. 895.10 (2) (b), Stats., have been placed into a qualified escrow account that is designated for Wisconsin judgments or release payments.
(b) The certification required under par. (a) shall include all of the following:
1. The name of the qualified financial institution where the escrow account is maintained.
2. The amount of funds placed into the escrow account since the last reporting period, based on Wisconsin sales.
3. The amounts, if any, paid out of the escrow account in judgments or release payments and the purpose of the disbursements.
4. The balance in the escrow account as of March 31 of each year.
5. A copy of the escrow account balance statement as of March 31 of each year.
(5) RECORDKEEPING REQUIREMENTS. Every tobacco product manufacturer required to file a schedule under sub. (3) shall maintain complete and accurate records to support the information reported on the required schedule. These records shall be maintained for a period of 4 years from the date of sale into Wisconsin and shall include the following:
(a) Purchase records indicating the tobacco product manufacturer of the cigarettes, the date of purchase and the number of cigarettes by brand or amount of “roll-your-own" cigarette tobacco purchased, by brand.
(b) Sales records indicating to whom the sale was made, the tobacco product manufacturer of the cigarettes, the date of sale and the number of cigarettes by brand or amount of “roll-your-own" cigarette tobacco sold.
(c) The number of Wisconsin cigarette tax stamps placed on packages of cigarettes for sale in the state of Wisconsin.
(d) Any additional records deemed necessary by the secretary.
(6) REMEDIES FOR NONCOMPLIANCE. The failure of a tobacco product manufacturer to either become a participating manufacturer under the terms of the master settlement agreement or place funds into a qualified escrow fund, as provided in s. 895.10 (2) (b) 1., Stats., shall be subject to civil action and penalties under s. 895.10 (2) (b) 3., Stats.
Note: Section Tax 9.69 interprets subchs. II and III of ch. 139, Stats., and s. 895.10, Stats.
Initial Regulatory Flexibility Analysis
This proposed rule order does not have a significant economic impact on a substantial number of small businesses.
Fiscal Estimate
This rule prescribes the mechanisms for collecting, maintaining and reporting data required by the master settlement agreement with tobacco product manufacturers. It has no effect on state tax or other revenues.
Notice of Hearing
Transportation
Notice is hereby given that pursuant to ss. 85.16 (1) and 227.11, Stats., and interpreting ss. 341.21 and 341.255 (4), Stats., the Department of Transportation will hold a public hearing at the time and place indicated below to consider the creation of ch. Trans 156, Wis. Adm. Code, relating to the automated partnership processing system (APPS) program.
Hearing Information
October 4, 2000 Room 254
Wednesday Hill Farms State Trans Bldg.
1:00 p.m. 4802 Sheboygan Ave.
Madison, WI
Parking for persons with disabilities and an accessible entrance are available on the north and south sides of the Hill Farms State Transportation Building.
An interpreter for the hearing-impaired will be available on request for this hearing. Please make reservations for a hearing interpreter at least 10 days prior to the hearing.
Written Comments
The public record on this proposed rule-making will be held open until close of business on Wednesday, October 11, 2000, to permit the submission of written comments from persons unable to attend the public hearing or who wish to supplement testimony offered at the hearing. Any such comments should be submitted to Bev Schwartz, Department of Transportation, Division of Motor Vehicles, Bureau of Vehicle Services, Room 253, P. O. Box 7909, Madison, WI 53707-7909.
