AB100: Bill Text

AB100,937,6 (c) 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. 895.12 (2) (b).

AB100,937,9 (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:

AB100,937,11 (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.

AB100,937,15 (b) The person receives from the consumer, at the time of purchase, a notarized copy of an identification card, 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.

AB100,937,17 (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.

AB100,937,22 (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.

AB100,937,25 (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.

AB100,938,4 (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.

AB100,938,8 (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.

AB100,938,13 (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. Every package used to ship cigarettes that are sold as provided under this section and delivered to a person in this state shall be clearly labeled to indicate that the package contains cigarettes and may not be delivered to a person who is under 18 years of age.

AB100, s. 1980 Section 1980. 139.35 (1) of the statutes is amended to read:

AB100,938,19 139.35 (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 and, distributors, and bonded direct marketers who are authorized by the department to purchase and affix tax stamps.

AB100, s. 1981 Section 1981. 139.37 (1) (a) of the statutes is amended to read:

AB100,939,14 139.37 (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 the sale or solicitation of cigarettes 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 or the person for whom the sales person is 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 permittee shall notify the department within 10 days after the resignation or dismissal of any such salesperson holding a permit.

AB100, s. 1982 Section 1982. 139.38 (1) of the statutes is amended to read:

AB100,940,4 139.38 (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, bonded direct marketer, and distributor holding a permit from the secretary with the right who is authorized by the department 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.

AB100, s. 1983 Section 1983. 139.38 (1m) of the statutes is created to read:

AB100,940,13 139.38 (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 point of 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.

AB100, s. 1984 Section 1984. 139.38 (2) of the statutes is amended to read:

AB100,940,19 139.38 (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.

AB100,940,25 (b) The department may allow any jobber, multiple retailer, nonbonded 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.

AB100, s. 1985 Section 1985. 139.39 (6) of the statutes is amended to read:

AB100,941,10 139.39 (6) Sections 71.74 (1), (2), (10), (11) and (14), 71.77, 71.80 (12), 71.91 (1) (a) and (c) and (2) to (7), 71.92 and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes under ch. 71 applies to the collection of the taxes under this subchapter, except that the period during which notice of an additional assessment shall be given begins on the due date of the report under this subchapter. Section 78.70 (6) as it applies to personal liability for paying taxes, interest, penalties, and other charges under ch. 78 applies to personal liability for paying taxes, interest, penalties, and other charges under this subchapter.

AB100, s. 1986 Section 1986. 139.395 of the statutes is amended to read:

AB100,941,20 139.395 Theft of tax moneys. All cigarette tax moneys received by a distributor, bonded 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, bonded direct marketer, or manufacturer and are the property of this state. Any distributor, bonded 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, bonded direct marketer, or manufacturer has or claims to have an interest in those moneys.

AB100, s. 1987 Section 1987. 139.40 (2) of the statutes is amended to read:

AB100,942,6 139.40 (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.

AB100, s. 1988 Section 1988. 139.44 (3) of the statutes is amended to read:

AB100,942,12 139.44 (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.

AB100, s. 1989 Section 1989. 139.44 (4) of the statutes is amended to read:

AB100,942,17 139.44 (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.

AB100, s. 1990 Section 1990. 139.44 (6m) of the statutes is created to read:

AB100,942,21 139.44 (6m) Any person who manufactures or sells cigarettes in this state without holding the proper permit issued under this subchapter is guilty of a Class I felony.

AB100, s. 1991 Section 1991. 139.44 (7) of the statutes is amended to read:

AB100,943,4 139.44 (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, the person shall not be granted another permit for a period of 2 5 years following such revocation, and, for the 5 year period following revocation, the person 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.

AB100, s. 1992 Section 1992. 139.45 of the statutes is amended to read:

AB100,943,8 139.45 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.

AB100, s. 1993 Section 1993. 139.75 (2) of the statutes is amended to read:

AB100,943,13 139.75 (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.

AB100, s. 1994 Section 1994. 139.75 (3g) of the statutes is created to read:

AB100,943,16 139.75 (3g) "Direct marketer" means any person who solicits or sells tobacco products to consumers in this state by direct marketing.

AB100, s. 1995 Section 1995. 139.75 (3r) of the statutes is created to read:

AB100,943,21 139.75 (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 on a premise that sells tobacco products.

AB100, s. 1996 Section 1996. 139.75 (4) (a) of the statutes is amended to read:

AB100,943,25 139.75 (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;

AB100, s. 1997 Section 1997. 139.75 (4) (c) of the statutes is amended to read:

AB100,944,4 139.75 (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.

AB100, s. 1998 Section 1998. 139.75 (4) (cm) of the statutes is created to read:

AB100,944,7 139.75 (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.

AB100, s. 1999 Section 1999. 139.75 (4n) of the statutes is created to read:

AB100,944,9 139.75 (4n) "Identification card" has the meaning given in s. 134.66 (1) (c).

AB100, s. 2000 Section 2000. 139.75 (5s) of the statutes is created to read:

AB100,944,13 139.75 (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.

AB100, s. 2001 Section 2001. 139.75 (7) of the statutes is amended to read:

AB100,944,16 139.75 (7) "Retail outlet" means each place of business from which tobacco products are sold to consumers by a retailer.

AB100, s. 2002 Section 2002. 139.75 (8) of the statutes is amended to read:

AB100,944,19 139.75 (8) "Retailer" means any person engaged in the business of selling tobacco products to ultimate consumers has the meaning given in s. 134.66 (1) (g).

AB100, s. 2003 Section 2003. 139.75 (12) of the statutes is amended to read:

AB100,945,2 139.75 (12) "Tobacco products" means cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco and other kinds and forms of tobacco prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking; but "tobacco products" does not include cigarettes, as defined under s. 139.30 (1) (1m).

AB100, s. 2004 Section 2004. 139.76 (3) of the statutes is created to read:

AB100,945,6 139.76 (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.

AB100, s. 2005 Section 2005. 139.78 (1m) of the statutes is created to read:

AB100,945,10 139.78 (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.

AB100, s. 2006 Section 2006. 139.79 (title) of the statutes is amended to read:

AB100,945,12 139.79 (title) Permits; distributor; direct marketer; subjobber.

AB100, s. 2007 Section 2007. 139.79 (1) of the statutes is amended to read:

AB100,945,17 139.79 (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.

AB100, s. 2008 Section 2008. 139.79 (2) of the statutes is amended to read:

AB100,945,20 139.79 (2) Section 139.34 (1) (b) (c) to (f), (4) and (9) applies to the permits under this section.

AB100, s. 2009 Section 2009. 139.795 of the statutes is created to read:

AB100,946,3 139.795 Direct marketing. (1) (a) No person may sell tobacco products by direct marketing to consumers in this state as a direct marketer or solicit sales of tobacco products to consumers in this state by direct marketing unless the person has obtained a permit from the department 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, and shall submit a $500 fee with the application.

AB100,946,7 (b) No person may be issued a permit under this subsection unless the person holds a valid distributor's permit under s. 139.79. Section 139.34 (1) (c) to (f), (7), and (9), as it applies to permits issued under s. 139.34, applies to permits issued under this subsection.

AB100,946,8 (c) A permit issued under this subsection expires on December 31 of each year.

AB100,946,15 (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 tobacco product sales to consumers in this state shall be credit card transactions; that the invoices and all means of solicitation for all shipments of tobacco product sales from the person shall bear the person's name and address and permit ultimately issued under this subsection; and that the person shall provide the department any information the department considers necessary to administer this section.

AB100,946,18 (2) No person may sell tobacco products to consumers in this state by direct marketing unless the tax imposed under s. 139.76, and under s. 77.52 or 77.53, has been paid with regard to such products.

AB100,946,20 (3) No person may sell tobacco products to a consumer in this state by direct marketing unless the person does all of the following:

AB100,946,22 (a) The person uses a mechanism, approved by the department, to verify the consumer's age.

AB100,946,25 (b) The person receives from the consumer, at the time of purchase, a copy or facsimile of an identification card, the name specified on the identification matches the name of the consumer.

AB100,947,2 (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.

AB100,947,7 (4) Any person who, without having a valid permit under sub. (1), sells or solicits sales of tobacco products 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 percent of the tax due on the tobacco products the person sold, without having a valid permit under sub. (1), to consumers in this state by direct marketing, whichever is greater.

AB100,947,13 (5) No tobacco products may be shipped or delivered to a person who is under 18 years of age and no tobacco products may be shipped to a post-office box. Every package used to ship tobacco products that are sold as provided under this section and delivered to a person in this state shall be clearly labeled to indicate that the package contains tobacco products and may not be delivered to a person who is under 18 years of age.

AB100, s. 2010 Section 2010. 139.81 (1) of the statutes is amended to read:

AB100,948,5 139.81 (1) No person may sell or take orders for tobacco products for resale or solicit sales of tobacco products in this state for any manufacturer or permittee 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. No manufacturer or permittee shall authorize any person to sell or take orders for tobacco products or solicit sales of tobacco products in this state 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 may authorize the sale or solicitation of tobacco products 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. 139.79. Each application for a permit shall disclose the name and address of the employer or the person for whom the salesperson is soliciting and shall remain effective only while the salesperson represents the named employer or person. If the 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 salesperson holding a permit.

AB100, s. 2011 Section 2011. 139.81 (2) of the statutes is amended to read:

AB100,948,8 139.81 (2) Section 139.34 (1) (b) (c) to (e) applies to the permits under this section.

AB100, s. 2012 Section 2012. 139.91 (1) of the statutes is amended to read:

AB100,948,12 139.91 (1) The Except as provided in sub. (4), the department may not reveal facts obtained in administering this subchapter, except that the department may publish statistics that do not reveal the identities of dealers.

AB100, s. 2013 Section 2013. 139.91 (4) of the statutes is created to read:

AB100,948,17 139.91 (4) The secretary of revenue and employees of that department may reveal facts obtained in administering this subchapter for the purposes of preparing and maintaining the list of persons with unpaid tax obligations as described in s. 71.91 (8) so that the list of such persons is available for public inspection.