Amendment JR2 SA2-SSA1-AB1

AB1-SSA1-SA2,325,19 3. If the person sells more than 600,000 cigarettes annually to consumers in this state by direct marketing, $10,000.

AB1-SSA1-SA2,325,20 (b) A permit issued under par. (a) expires on December 31 of each year.

AB1-SSA1-SA2,326,5 (c) The department may not issue a permit to a person under par. (a) unless the person certifies to the department that the person shall acquire stamped cigarettes from a licensed wholesaler or distributor or unstamped cigarettes from the manufacturer thereof or from the first importer of record 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 purchase 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.

AB1-SSA1-SA2,326,13 (d) No person may be issued a permit under this subsection unless the person certifies to the department, in the manner prescribed by the department, that all cigarette sales to consumers in this state shall be credit card or personal check transactions; that the invoices 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.

AB1-SSA1-SA2,326,16 (2) (a) No person may purchase tax stamps in excess of the number of cigarette sales specified in his or her permit under sub. (1) (a) unless the person pays the permit fee under sub. (1) (a) that is applicable to the excess amount.

AB1-SSA1-SA2,326,22 (b) No person may sell cigarettes in excess of the number of cigarette sales specified in his or her permit under sub. (1) (a) unless the person pays the permit fee under sub. (1) (a) that is applicable to the excess sales. Any person who sells cigarettes in excess of the number of cigarette sales specified in his or her permit 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, whichever is greater.

AB1-SSA1-SA2,327,2 (3) (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 such cigarettes and stamps are affixed to the cigarette packages or containers as provided under s. 139.32.

AB1-SSA1-SA2,327,4 (b) No person may sell cigarettes to consumers in this state by direct marketing unless the tax imposed under s. 77.52 or 77.53 is paid on the sale of such cigarettes.

AB1-SSA1-SA2,327,7 (4) No person may sell cigarettes to a consumer in this state by direct marketing unless the person verifies the consumer's identity and that the consumer is at least 18 years of age by any of the following methods:

AB1-SSA1-SA2,327,9 (a) The person uses a database, approved by the department, that includes information based on public records to verify the consumer's age and identity.

AB1-SSA1-SA2,327,15 (b) The person receives from the consumer, at the time of purchase, a notarized copy of a government issued identification, the name specified on the identification matches the name of the consumer, and the birth date on the identification verifies that the purchaser is at least 18 years of age. In this paragraph, "government issued identification" includes a valid driver's license, state identification card, passport, or military identification.

AB1-SSA1-SA2,327,17 (c) The person uses a mechanism, other than a mechanism under par. (a) or (b), for verifying the age and identity of a consumer that is approved by the department.

AB1-SSA1-SA2,327,22 (5) 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.

AB1-SSA1-SA2,327,25 (6) (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.

AB1-SSA1-SA2,328,4 (b) Any person who sells cigarettes that exceed the maximum amounts 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 major fraction of 200 cigarettes, sold above the maximum amounts, whichever is greater.

AB1-SSA1-SA2,328,8 (c) Any person who purchases cigarettes that exceed the maximum amounts 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 above the maximum amounts.

AB1-SSA1-SA2,328,10 (7) No cigarettes may be shipped to a person who is under 18 years of age and no cigarettes may be shipped to a post-office box.

AB1-SSA1-SA2,328,13 (8) All revenue collected from permits and penalties under this section shall be credited to the appropriation account under s. 20.566 (1) (gc) to enforce and administer this section.

AB1-SSA1-SA2, s. 315cd Section 315cd. 139.35 (1) of the statutes is amended to read:

AB1-SSA1-SA2,328,18 139.35 (1) Transfers. No person may give, sell or lend any stamps to another and no person may accept, purchase or borrow any stamps from another. All sales and transfers of stamps may be made only by the secretary to permit holding manufacturers, direct marketers, and distributors.

AB1-SSA1-SA2, s. 315ce Section 315ce. 139.37 (1) (a) of the statutes is amended to read:

AB1-SSA1-SA2,329,13 139.37 (1) (a) No person shall sell cigarettes or take orders for cigarettes for resale 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 cigarettes or take orders for cigarettes 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 another person to sell cigarettes or solicit 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 permit shall disclose the name and address of the employer and such permit shall remain effective only while the salesperson represents such named employer. If such salesperson is thereafter employed by another manufacturer or permittee person, the salesperson shall obtain a new salesperson's permit. Each manufacturer and permittee shall notify the department within 10 days after the resignation or dismissal of any such salesperson holding a permit.

AB1-SSA1-SA2, s. 315cf Section 315cf. 139.38 (1) of the statutes is amended to read:

AB1-SSA1-SA2,330,3 139.38 (1) Every manufacturer located out of the state shall keep records of all sales of cigarettes shipped into this state. Every manufacturer located in the state shall keep records of production, sales and withdrawals of cigarettes. Every distributor and direct marketer shall keep records of purchases and sales of cigarettes. Every manufacturer, direct marketer, and distributor holding a permit from the secretary with the right to purchase and apply stamps shall also keep records of purchases and disposition of stamps. Every jobber, multiple retailer, and vending machine operator shall keep records of all purchases and disposition of cigarettes. Every warehouse operator shall keep records of receipts and withdrawals of cigarettes. All such records shall be accurate and complete and be kept in a manner prescribed by the secretary. These records shall be preserved on the premises described in the permit or license in such a manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the department.

AB1-SSA1-SA2, s. 315cg Section 315cg. 139.38 (1m) of the statutes is created to read:

AB1-SSA1-SA2,330,12 139.38 (1m) Records of purchases and sales of cigarettes under sub. (1) that are kept by direct marketers shall indicate, for each shipment of cigarettes into this state in the month preceding the report under sub. (2), the invoice date and number; the quantity of cigarettes shipped; the brand name of the cigarettes shipped; the manufacturer of the cigarettes shipped and the manufacturer's origin; the purchaser's name, address, and birth date; the name of the person to whom the cigarettes were shipped; the address to which the cigarettes were shipped; and any other information the department requires.

AB1-SSA1-SA2, s. 315ch Section 315ch. 139.38 (2) of the statutes is amended to read:

AB1-SSA1-SA2,330,18 139.38 (2) (a) Except as provided in par. (b), every permittee manufacturer, distributor, jobber, and direct marketer shall render a true and correct invoice of every sale of cigarettes at wholesale and every permittee shall on or before the 15th day of each calendar month file a verified report of all cigarettes purchased, sold, received, warehoused or withdrawn during the preceding calendar month.

AB1-SSA1-SA2,330,24 (b) The department may allow any jobber, multiple retailer, direct marketer, or vending machine operator permittee who does not sell cigarettes, except for those on which the tax under this chapter is paid, to file a quarterly report. The quarterly report shall be filed on or before the 15th day of the next month following the close of each calendar quarter. The report shall specify the number of cigarettes purchased and sold during the preceding calendar quarter.

AB1-SSA1-SA2, s. 315ci Section 315ci. 139.395 of the statutes is amended to read:

AB1-SSA1-SA2,331,8 139.395 Theft of tax moneys. All cigarette tax moneys received by a distributor, direct marketer, or manufacturer for the sale of cigarettes on which the tax under this subchapter has become due and has not been paid are trust funds in the hands of the distributor, direct marketer, or manufacturer and are the property of this state. Any distributor, direct marketer, or manufacturer who fraudulently withholds, appropriates or otherwise uses cigarette tax moneys that are the property of this state is guilty of theft under s. 943.20 (1), whether or not the distributor, direct marketer, or manufacturer has or claims to have an interest in those moneys.

AB1-SSA1-SA2, s. 315cj Section 315cj. 139.40 (2) of the statutes is amended to read:

AB1-SSA1-SA2,331,21 139.40 (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, except that proceeds from the sale of cigarettes seized from a direct marketer and obtained through the administration of this subsection shall be credited to the appropriation account under s. 20.566 (1) (gc). 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.".

AB1-SSA1-SA2,331,22 382. Page 167, line 16: after that line insert:

AB1-SSA1-SA2,331,23 " Section 312m. 134.71 (12) of the statutes is amended to read:

AB1-SSA1-SA2,332,7 134.71 (12) Applications and forms. The department of agriculture, trade and consumer protection, in consultation with the department of justice, shall develop applications and other forms required under subs. (5) (intro.) and (8) (c). The department of agriculture, trade and consumer protection shall print a sufficient number of applications and forms to provide to counties and municipalities for distribution to pawnbrokers, secondhand article dealers and secondhand jewelry dealers at no cost.

AB1-SSA1-SA2, s. 314m Section 314m. 136.03 (title) of the statutes is amended to read:

AB1-SSA1-SA2,332,10 136.03 (title) Duties of the department of agriculture, trade and consumer protection justice.

AB1-SSA1-SA2, s. 314p Section 314p. 136.03 (1) (intro.) of the statutes is amended to read:

AB1-SSA1-SA2,332,17 136.03 (1) (intro.) The department of agriculture, trade and consumer protection of justice shall investigate violations of this chapter and of rules and orders issued under s. 136.04. The department of justice may subpoena persons and records to facilitate its investigations, and may enforce compliance with such subpoenas as provided in s. 885.12. The department of justice may in on behalf of the state:

AB1-SSA1-SA2, s. 314r Section 314r. 136.04 of the statutes is amended to read:

AB1-SSA1-SA2,332,22 136.04 Powers of the department of agriculture, trade and consumer protection justice. (1) The department of agriculture, trade and consumer protection justice may adopt such rules as may be required to carry out the purposes of this chapter.

AB1-SSA1-SA2,333,2 (2) The department of agriculture, trade and consumer protection justice after public hearing may issue general or special orders to carry out the purposes of this chapter and to determine and prohibit unfair trade practices in business or unfair methods of competition in business pursuant to s. 100.20 (2) to (4).".

AB1-SSA1-SA2,333,3 383. Page 168, line 9: after that line insert:

AB1-SSA1-SA2,333,4 " Section 318b. 139.44 (3) of the statutes is amended to read:

AB1-SSA1-SA2,333,9 139.44 (3) Any permittee who fails to keep the records required by ss. 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 the 2nd or subsequent offense.

AB1-SSA1-SA2, s. 318c Section 318c. 139.44 (4) of the statutes is amended to read:

AB1-SSA1-SA2,333,14 139.44 (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 by the secretary.

AB1-SSA1-SA2, s. 318dm Section 318dm. 139.44 (6m) of the statutes is created to read:

AB1-SSA1-SA2,333,19 139.44 (6m) Any person who manufactures or sells cigarettes in this state without holding the proper permit issued under this subchapter shall be fined not less than $1,000 nor more than $10,000 or imprisoned not less than 6 months nor more than 2 years or both.

AB1-SSA1-SA2, s. 318dn Section 318dn. 139.44 (6m) of the statutes, as created by 2001 Wisconsin Act .... (this act), is amended to read:

AB1-SSA1-SA2,334,2 139.44 (6m) Any person who manufactures or sells cigarettes in this state without holding the proper permit issued under this subchapter shall be fined not less than $1,000 nor more than $10,000 or imprisoned not less than 6 months nor more than 2 years or both is guilty of a Class I felony.

AB1-SSA1-SA2, s. 318e Section 318e. 139.44 (7) of the statutes is amended to read:

AB1-SSA1-SA2,334,10 139.44 (7) In addition to the penalties imposed for violation of ss. 139.30 to 139.41 or 139.75 to 139.83 or any of the rules of the department, the permit of any person convicted of a 2nd or subsequent offense shall be automatically revoked and, he or she shall not be granted another permit for a period of 2 5 years following such revocation, and, for the 5-year period following revocation, he or she shall not act as the employee or agent of a permittee under this subchapter to perform acts authorized by any permit issued to the permittee under this subchapter.".

AB1-SSA1-SA2,334,11 384. Page 168, line 10: delete lines 10 to 13 and substitute:

AB1-SSA1-SA2,334,12 " Section 318z. 139.44 (8) (a) to (c) of the statutes are amended to read:

AB1-SSA1-SA2,334,15 139.44 (8) (a) If the number of cigarettes does not exceed 6,000, a fine of not more than $200 $1,000 or imprisonment for not more than 6 months one year in the county jail or both.

AB1-SSA1-SA2,334,18 (b) If the number of cigarettes exceeds 6,000 but does not exceed 36,000, a fine of not more than $1,000 or imprisonment for not more than one year in the county jail or both the person is guilty of a Class I felony.

AB1-SSA1-SA2,334,21 (c) If the number of cigarettes exceeds 36,000, a fine of not more than $10,000 or imprisonment for not more than 3 years or both the person is guilty of a Class H felony.".

AB1-SSA1-SA2,334,22 385. Page 168, line 14: before that line insert:

AB1-SSA1-SA2,334,23 " Section 319b. 139.45 of the statutes is amended to read:

AB1-SSA1-SA2,335,3 139.45 Prosecutions by attorney general. Upon request by the secretary of revenue, the attorney general may represent this state or assist a district attorney in prosecuting any case arising under this subchapter or under ss. 134.65 and 134.66.

AB1-SSA1-SA2, s. 319c Section 319c. 139.75 (2) of the statutes is amended to read:

AB1-SSA1-SA2,335,8 139.75 (2) "Consumer" means any individual who receives tobacco products for his or her personal use or consumption or any person individual who has title to or possession of tobacco products in storage for use or other consumption in this state any purpose other than for sale or resale.

AB1-SSA1-SA2, s. 319d Section 319d. 139.75 (3g) of the statutes is created to read:

AB1-SSA1-SA2,335,11 139.75 (3g) "Direct marketer" means any person who solicits or sells tobacco products to consumers in this state by direct marketing.

AB1-SSA1-SA2, s. 319e Section 319e. 139.75 (3r) of the statutes is created to read:

AB1-SSA1-SA2,335,16 139.75 (3r) "Direct marketing" means publishing or making accessible an offer for the sale of tobacco products to consumers in this state, or selling tobacco products to consumers in this state, using any means by which the consumer is not physically present at the time of sale on a premise that sells tobacco products.

AB1-SSA1-SA2, s. 319f Section 319f. 139.75 (4) (a) of the statutes is amended to read:

AB1-SSA1-SA2,335,20 139.75 (4) (a) Any person in this state engaged in the business of selling tobacco products in this state who brings, or causes to be brought, into this state from outside the state any tobacco products for sale;

AB1-SSA1-SA2, s. 319g Section 319g. 139.75 (4) (c) of the statutes is amended to read:

AB1-SSA1-SA2,335,24 139.75 (4) (c) Any person outside this state engaged in the business of selling tobacco products outside this state who ships or transports tobacco products to retailers in this state to be sold by those retailers.

AB1-SSA1-SA2, s. 319h Section 319h. 139.75 (4) (cm) of the statutes is created to read:

AB1-SSA1-SA2,336,2 139.75 (4) (cm) Any person outside this state engaged in the business of selling tobacco products who ships or transports tobacco products to consumers in this state.

AB1-SSA1-SA2, s. 319i Section 319i. 139.75 (5s) of the statutes is created to read:

AB1-SSA1-SA2,336,6 139.75 (5s) "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.

AB1-SSA1-SA2, s. 319j Section 319j. 139.75 (7) of the statutes is amended to read:

AB1-SSA1-SA2,336,9 139.75 (7) "Retail outlet" means each place of business from which tobacco products are sold to consumers by a retailer.

AB1-SSA1-SA2, s. 319k Section 319k. 139.75 (8) of the statutes is amended to read:

AB1-SSA1-SA2,336,14 139.75 (8) "Retailer" means any person engaged in the business of selling tobacco products who sells, exposes for sale, or possesses with intent to sell, to ultimate consumers any tobacco products by any means in which the consumer is physically present at the time of sale on a premises that sells tobacco products.

AB1-SSA1-SA2, s. 319L Section 319L. 139.76 (3) of the statutes is created to read:

AB1-SSA1-SA2,336,18 139.76 (3) Except as provided in sub. (2), no person may possess tobacco products in this state unless the tax imposed under sub. (1) is paid on such tobacco products.

AB1-SSA1-SA2, s. 319m Section 319m. 139.78 (1m) of the statutes is created to read:

AB1-SSA1-SA2,336,22 139.78 (1m) Except as provided in s. 139.76 (2), no person other than a distributor with a valid permit under s. 139.79 may import into this state tobacco products for which the tax imposed under s. 139.76 (1) has not been paid.

AB1-SSA1-SA2, s. 319n Section 319n. 139.79 (title) of the statutes is amended to read:

AB1-SSA1-SA2,336,24 139.79 (title) Permits; distributor; direct marketer; subjobber.

AB1-SSA1-SA2, s. 319p Section 319p. 139.79 (1) of the statutes is amended to read:

AB1-SSA1-SA2,337,4 139.79 (1) No person may engage in the business of a distributor, direct marketer, or subjobber of tobacco products at any place of business unless that person has filed an application for and obtained a permit from the department to engage in that business at such place.

AB1-SSA1-SA2, s. 319q Section 319q. 139.79 (2) of the statutes is amended to read: