AB249, s. 42 7Section 42. 139.38 (2) of the statutes is amended to read:
AB249,17,128 139.38 (2) (a) Except as provided in par. (b), every permittee manufacturer,
9distributor, jobber, and direct marketer
shall render a true and correct invoice of
10every sale of cigarettes at wholesale and every permittee shall on or before the 15th
11day of each calendar month file a verified report of all cigarettes purchased, sold,
12received, warehoused or withdrawn during the preceding calendar month.
AB249,17,1813 (b) The department may allow any jobber, multiple retailer, direct marketer,
14or vending machine operator permittee who does not sell cigarettes, except for those
15on which the tax under this chapter is paid, to file a quarterly report. The quarterly
16report shall be filed on or before the 15th day of the next month following the close
17of each calendar quarter. The report shall specify the number of cigarettes purchased
18and sold during the preceding calendar quarter.
AB249, s. 43 19Section 43. 139.395 of the statutes is amended to read:
AB249,18,2 20139.395 Theft of tax moneys. All cigarette tax moneys received by a
21distributor, direct marketer, or manufacturer for the sale of cigarettes on which the
22tax under this subchapter has become due and has not been paid are trust funds in
23the hands of the distributor, direct marketer, or manufacturer and are the property
24of this state. Any distributor, direct marketer, or manufacturer who fraudulently
25withholds, appropriates or otherwise uses cigarette tax moneys that are the property

1of this state is guilty of theft under s. 943.20 (1), whether or not the distributor, direct
2marketer,
or manufacturer has or claims to have an interest in those moneys.
AB249, s. 44 3Section 44. 139.40 (2) of the statutes is amended to read:
AB249,18,154 139.40 (2) If cigarettes which do not bear the proper tax stamps or on which
5the tax has not been paid
Cigarettes that are so seized they as provided under sub.
6(1)
may be given to law enforcement officers to use in criminal investigations or sold
7to qualified buyers by the secretary, without notice. If the cigarettes are sold, after
8deducting the costs of the sale and the keeping of storing the property, the proceeds
9of the sale shall be paid into the state treasury, except that proceeds from the sale
10of cigarettes seized from a direct marketer and obtained through the administration
11of this subsection shall be credited to the appropriation account under s. 20.566 (1)
12(gc)
. If the secretary finds that such cigarettes may deteriorate or become unfit for
13use in criminal investigations or for sale or that those uses would otherwise be
14impractical, the secretary may order them destroyed or give them to a charitable or
15penal institution for free distribution to patients or inmates.
AB249, s. 45 16Section 45. 139.44 (3) of the statutes is amended to read:
AB249,18,2117 139.44 (3) Any permittee who fails to keep the records required by ss. 139.30
18to 139.42 or 139.77 to 139.82 shall be fined not less than $100 $500 nor more than
19$500 $1,000 for the first offense and shall be fined not less than $1,000 nor more than
20$5,000
or imprisoned not more than 6 months 180 days or both for the 2nd or
21subsequent offense
.
AB249, s. 46 22Section 46. 139.44 (4) of the statutes is amended to read:
AB249,19,223 139.44 (4) Any person who refuses to permit the examination or inspection
24authorized in s. 139.39 (2) or 139.83 may be fined not more less than $500 nor more

1than $1,000
or imprisoned not more than 90 180 days or both. Such refusal shall be
2cause for immediate suspension or revocation of permit by the secretary.
AB249, s. 47 3Section 47. 139.44 (6m) of the statutes is created to read:
AB249,19,64 139.44 (6m) Any person who manufactures or sells cigarettes in this state
5without holding the proper permit issued under this subchapter is guilty of a Class
6I felony.
AB249, s. 48 7Section 48. 139.44 (7) of the statutes is amended to read:
AB249,19,148 139.44 (7) In addition to the penalties imposed for violation of ss. 139.30 to
9139.41 or 139.75 to 139.83 or any of the rules of the department, the permit of any
10person convicted of a 2nd or subsequent offense shall be automatically revoked and,
11he or she shall not be granted another permit for a period of 2 5 years following such
12revocation, and, for the 5-year period following revocation, he or she shall not act as
13the employee or agent of a permittee under this subchapter to perform acts
14authorized by any permit issued to the permittee under this subchapter
.
AB249, s. 49 15Section 49. 139.44 (8) (a) and (b) of the statutes are amended to read:
AB249,19,1816 139.44 (8) (a) If the number of cigarettes does not exceed 6,000, a fine of not
17more than $200 $1,000 or imprisonment for not more than 6 months one year in the
18county jail
or both.
AB249,19,2119 (b) If the number of cigarettes exceeds 6,000 but does not exceed 36,000, a fine
20of not more than $1,000 or imprisonment for not more than one year in the county
21jail or both
the person is guilty of a Class H felony.
AB249, s. 50 22Section 50. 139.45 of the statutes is amended to read:
AB249,19,25 23139.45 Prosecutions by attorney general. Upon request by the secretary
24of revenue, the attorney general may represent this state or assist a district attorney
25in prosecuting any case arising under this subchapter or under ss. 134.65 and 134.66.
AB249, s. 51
1Section 51. 139.75 (2) of the statutes is amended to read:
AB249,20,52 139.75 (2) "Consumer" means any individual who receives tobacco products for
3his or her personal use or consumption or
any person individual who has title to or
4possession of tobacco products in storage for use or other consumption in this state
5any purpose other than for sale or resale.
AB249, s. 52 6Section 52. 139.75 (3g) of the statutes is created to read:
AB249,20,87 139.75 (3g) "Direct marketer" means any person who solicits or sells tobacco
8products to consumers in this state by direct marketing.
AB249, s. 53 9Section 53. 139.75 (3r) of the statutes is created to read:
AB249,20,1310 139.75 (3r) "Direct marketing" means publishing or making accessible an offer
11for the sale of tobacco products to consumers in this state, or selling tobacco products
12to consumers in this state, using any means by which the consumer is not physically
13present at the time of sale on a premise that sells tobacco products.
AB249, s. 54 14Section 54. 139.75 (4) (a) of the statutes is amended to read:
AB249,20,1715 139.75 (4) (a) Any person in this state engaged in the business of selling tobacco
16products in this state who brings, or causes to be brought, into this state from outside
17the state any tobacco products for sale;
AB249, s. 55 18Section 55. 139.75 (4) (c) of the statutes is amended to read:
AB249,20,2119 139.75 (4) (c) Any person outside this state engaged in the business of selling
20tobacco products outside this state who ships or transports tobacco products to
21retailers in this state to be sold by those retailers.
AB249, s. 56 22Section 56. 139.75 (4) (cm) of the statutes is created to read:
AB249,20,2423 139.75 (4) (cm) Any person outside this state engaged in the business of selling
24tobacco products who ships or transports tobacco products to consumers in this state.
AB249, s. 57 25Section 57. 139.75 (5s) of the statutes is created to read:
AB249,21,3
1139.75 (5s) "Person" means any individual, sole proprietorship, partnership,
2limited liability company, corporation, or association, or any owner of a single-owner
3entity that is disregarded as a separate entity under ch. 71.
AB249, s. 58 4Section 58. 139.75 (7) of the statutes is amended to read:
AB249,21,65 139.75 (7) "Retail outlet" means each place of business from which tobacco
6products are sold to consumers by a retailer.
AB249, s. 59 7Section 59. 139.75 (8) of the statutes is amended to read:
AB249,21,118 139.75 (8) "Retailer" means any person engaged in the business of selling
9tobacco products
who sells, exposes for sale, or possesses with intent to sell, to
10ultimate consumers any tobacco products by any means in which the consumer is
11physically present at the time of sale on a premises that sells tobacco products
.
AB249, s. 60 12Section 60. 139.76 (3) of the statutes is created to read:
AB249,21,1513 139.76 (3) Except as provided in sub. (2), no person may possess tobacco
14products in this state unless the tax imposed under sub. (1) is paid on such tobacco
15products.
AB249, s. 61 16Section 61. 139.78 (1m) of the statutes is created to read:
AB249,21,1917 139.78 (1m) Except as provided in s. 139.76 (2), no person other than a
18distributor with a valid permit under s. 139.79 may import into this state tobacco
19products for which the tax imposed under s. 139.76 (1) has not been paid.
AB249, s. 62 20Section 62. 139.79 (title) of the statutes is amended to read:
AB249,21,21 21139.79 (title) Permits; distributor; direct marketer; subjobber.
AB249, s. 63 22Section 63. 139.79 (1) of the statutes is amended to read:
AB249,22,223 139.79 (1) No person may engage in the business of a distributor, direct
24marketer,
or subjobber of tobacco products at any place of business unless that

1person has filed an application for and obtained a permit from the department to
2engage in that business at such place.
AB249, s. 64 3Section 64. 139.79 (2) of the statutes is amended to read:
AB249,22,54 139.79 (2) Section 139.34 (1) (b) (c) to (f), (4) and (9) applies to the permits under
5this section.
AB249, s. 65 6Section 65. 139.795 of the statutes is created to read:
AB249,22,13 7139.795 Direct marketing. (1) (a) No person may sell tobacco products by
8direct marketing to consumers in this state as a direct marketer or solicit sales of
9tobacco products to consumers in this state by direct marketing unless the person has
10obtained a permit from the department to make such sales or solicitations. The
11person shall file an application for a permit under this subsection with the
12department, in the manner prescribed by the department, and shall submit a $500
13fee with the application.
AB249,22,1714 (b) No person may be issued a permit under this subsection unless the person
15holds a valid distributor's permit under s. 139.79. Section 139.34 (1) (c) to (f), (4), and
16(9), as it applies to permits issued under s. 139.34, applies to permits issued under
17this subsection.
AB249,22,1818 (c) A permit issued under this subsection expires on December 31 of each year.
AB249,23,219 (d) No person may be issued a permit under this subsection unless the person
20certifies to the department, in the manner prescribed by the department, that all
21tobacco product sales to consumers in this state shall be credit card or personal check
22transactions; that the invoice for all shipments of tobacco product sales from the
23person shall bear the person's name and address and the permit number of the
24permit ultimately issued under this subsection; and that the person shall provide the

1department any information the department considers necessary to administer this
2section.
AB249,23,5 3(2) No person may sell tobacco products to consumers in this state by direct
4marketing unless the tax imposed under s. 139.76, and under s. 77.52 or 77.53, has
5been paid with regard to such products.
AB249,23,8 6(3) No person may sell tobacco products to a consumer in this state by direct
7marketing unless the person verifies the consumer's identity and that the consumer
8is at least 18 years of age by any of the following methods:
AB249,23,109 (a) The person uses a database, approved by the department, that includes
10information based on public records to verify the consumer's age and identity.
AB249,23,1611 (b) The person receives from the consumer, at the time of purchase, a notarized
12copy of a government issued identification, the name specified on the identification
13matches the name of the consumer, and the birth date on the identification verifies
14that the purchaser is at least 18 years of age. In this paragraph, "government issued
15identification" includes a valid driver's license, state identification card, passport, or
16military identification.
AB249,23,1817 (c) The person uses a mechanism, other than a mechanism under par. (a) or (b),
18for verifying the age and identity of a consumer that is approved by the department.
AB249,23,23 19(4) Any person who, without having a valid permit under sub. (1), sells or
20solicits sales of tobacco products to consumers in this state by direct marketing shall
21pay a penalty to the department of $5,000 or an amount that is equal to 50 percent
22of the tax due on the tobacco products the person sold, without having a valid permit
23under sub. (1), to consumers in this state by direct marketing, whichever is greater.
AB249,23,25 24(5) No tobacco products may be shipped or delivered to a person who is under
2518 years of age and no tobacco products may be shipped to a post-office box.
AB249,24,3
1(6) All revenue collected from permits and penalties under this section shall
2be credited to the appropriation account under s. 20.566 (1) (gc) to enforce and
3administer this section.
AB249, s. 66 4Section 66. 139.81 (1) of the statutes is amended to read:
AB249,24,205 139.81 (1) No person may sell or take orders for tobacco products for resale or
6solicit sales of tobacco products
in this state for any manufacturer or permittee
7unless the person has filed an application for and obtained a valid certificate under
8s. 73.03 (50) and a salesperson's permit from the department. No manufacturer or
9permittee shall authorize any person to sell or take orders for tobacco products or
10solicit sales of tobacco products
in this state unless the person has filed an application
11for and obtained a valid certificate under s. 73.03 (50) and a salesperson's permit.
12No person shall authorize another person to sell tobacco products or solicit sales of
13tobacco products in this state unless the person has filed an application for and
14obtained a valid certificate under s. 73.03 (50) and a valid permit under s. 139.79.

15Each application for a permit shall disclose the name and address of the employer
16and shall remain effective only while the salesperson represents the named
17employer. If the salesperson is thereafter employed by another manufacturer or
18permittee
person the salesperson shall obtain a new salesperson's permit. Each
19manufacturer and permittee shall notify the department within 10 days after the
20resignation or dismissal of any salesperson holding a permit.
AB249, s. 67 21Section 67. 139.81 (2) of the statutes is amended to read:
AB249,24,2322 139.81 (2) Section 139.34 (1) (b) (c) to (e) applies to the permits under this
23section.
AB249,24,2424 (End)
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