LRB-1412/3
JK:kjf:pg
2005 - 2006 LEGISLATURE
May 10, 2005 - Introduced by Representatives J. Fitzgerald, Davis, Molepske,
Lamb, Van Roy, Shilling, Hahn, Hines, Berceau, Nerison, Ott, Black,
Ainsworth, Albers, Cullen, Pridemore, Vos, Lehman, Nischke, Gielow
and
Kreibich, cosponsored by Senators S. Fitzgerald, Stepp, Darling, Harsdorf,
Roessler, Olsen
and Lazich. Referred to Committee on State Affairs.
AB411,1,8 1An Act to renumber 139.30 (1); to amend 134.66 (1) (a), 134.66 (2) (a), 134.66
2(2) (am), 134.66 (2) (d), 134.66 (2) (e), 139.30 (10), 139.32 (1), 139.32 (5), 139.32
3(5m), 139.32 (6), 139.321 (1) (intro.), 139.33 (3), 139.34 (3), 139.35 (1), 139.38
4(1), 139.38 (2), 139.395, 139.45, 139.75 (12), 254.911 (1) and 891.455 (4); and to
5create
100.20 (1n), 134.66 (1) (am), 139.30 (1d), 139.30 (1s), 139.30 (2n), 139.30
6(2p), 139.30 (4n), 139.30 (8d), 139.345, 139.38 (1m) and 254.92 (2m) of the
7statutes; relating to: selling cigarettes to consumers in this state via direct
8marketing and providing penalties.
Analysis by the Legislative Reference Bureau
Under current law, generally, a person may not sell cigarettes in this state as
a distributor, jobber, vending machine operator, or multiple retailer without having
a permit from the Department of Revenue (DOR). A "jobber" is any person who
acquires cigarettes from manufacturers or distributors, stores the cigarettes, and
sells the cigarettes to retailers for resale.
This bill prohibits a direct marketer from selling cigarettes to consumers in this
state unless the direct marketer fulfills certain requirements. The bill defines "direct
marketing" as publishing or making accessible an offer for the sale of cigarettes to
consumers in this state, or selling cigarettes, using any means by which the
consumer is not physically present on a premise that sells cigarettes.

Under the bill, a direct marketer must certify to DOR that the person will
register with debit and credit card companies; that the invoices for all shipments of
cigarettes will bear the direct marketer's name and address; and that the direct
marketer will provide DOR any information that DOR considers necessary. The
direct marketer may not sell any cigarettes unless the sales tax, use tax, or cigarette
tax, as appropriate, has been paid on the sale of the cigarettes.
This bill also requires a direct marketer who sells cigarettes to consumers in
this state to verify the consumer's name and address and that the consumer is at
least 18 years of age. The bill also requires that any person who delivers such
cigarettes to consumers in this state verify that the person who purchased the
cigarettes, and who receives the delivery, is at least 18 years of age.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report concerning the proposed penalty and the costs or savings that are likely to
result if the bill is enacted.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB411, s. 1 1Section 1. 100.20 (1n) of the statutes is created to read:
AB411,2,32 100.20 (1n) It is an unfair method of competition or an unfair trade practice
3for any person to sell cigarettes to consumers in this state in violation of s. 139.345.
AB411, s. 2 4Section 2. 134.66 (1) (a) of the statutes is amended to read:
AB411,2,55 134.66 (1) (a) "Cigarette" has the meaning given in s. 139.30 (1) (1m).
AB411, s. 3 6Section 3. 134.66 (1) (am) of the statutes is created to read:
AB411,2,77 134.66 (1) (am) "Direct marketer" has the meaning given in s. 139.30 (2n).
AB411, s. 4 8Section 4. 134.66 (2) (a) of the statutes is amended to read:
AB411,3,49 134.66 (2) (a) No retailer, direct marketer, manufacturer, distributor, jobber or
10subjobber, no agent, employee or independent contractor of a retailer, direct
11marketer,
manufacturer, distributor, jobber or subjobber and no agent or employee
12of an independent contractor may sell or provide for nominal or no consideration
13cigarettes or tobacco products to any person under the age of 18, except as provided

1in s. 254.92 (2) (a). A vending machine operator is not liable under this paragraph
2for the purchase of cigarettes or tobacco products from his or her vending machine
3by a person under the age of 18 if the vending machine operator was unaware of the
4purchase.
AB411, s. 5 5Section 5. 134.66 (2) (am) of the statutes is amended to read:
AB411,3,136 134.66 (2) (am) No retailer, direct marketer, manufacturer, distributor, jobber,
7subjobber, no agent, employee or independent contractor of a retailer, direct
8marketer,
manufacturer, distributor, jobber or subjobber and no agent or employee
9of an independent contractor may provide for nominal or no consideration cigarettes
10or tobacco products to any person except in a place where no person younger than 18
11years of age is present or permitted to enter unless the person who is younger than
1218 years of age is accompanied by his or her parent or guardian or by his or her spouse
13who has attained the age of 18 years.
AB411, s. 6 14Section 6. 134.66 (2) (d) of the statutes is amended to read:
AB411,3,1715 134.66 (2) (d) No manufacturer, direct marketer, distributor, jobber, subjobber
16or retailer, or their employees or agents, may provide cigarettes or tobacco products
17for nominal or no consideration to any person under the age of 18.
AB411, s. 7 18Section 7. 134.66 (2) (e) of the statutes is amended to read:
AB411,3,2019 134.66 (2) (e) No retailer or direct marketer may sell cigarettes in a form other
20than as a package or container on which a stamp is affixed under s. 139.32 (1).
AB411, s. 8 21Section 8. 139.30 (1) of the statutes is renumbered 139.30 (1m).
AB411, s. 9 22Section 9. 139.30 (1d) of the statutes is created to read:
AB411,4,223 139.30 (1d) "Bonded direct marketer" means any person who acquires
24unstamped cigarettes from the manufacturer thereof, affixes stamps to the packages
25or other containers, stores them and sells them by direct marketing to consumers for

1their own personal use and who may also acquire stamped cigarettes from
2manufacturers or distributors for such sales.
AB411, s. 10 3Section 10. 139.30 (1s) of the statutes is created to read:
AB411,4,64 139.30 (1s) "Consumer" means any individual who receives cigarettes for his
5or her personal use or consumption or any individual who has title to or possession
6of cigarettes for any purpose other than for sale or resale.
AB411, s. 11 7Section 11. 139.30 (2n) of the statutes is created to read:
AB411,4,98 139.30 (2n) "Direct marketer" means a bonded direct marketer or a nonbonded
9direct marketer.
AB411, s. 12 10Section 12. 139.30 (2p) of the statutes is created to read:
AB411,4,1411 139.30 (2p) "Direct marketing" means publishing or making accessible an offer
12for the sale of cigarettes to consumers in this state, or selling cigarettes to consumers
13in this state, using any means by which the consumer is not physically present at the
14time of sale on a premise that sells cigarettes.
AB411, s. 13 15Section 13. 139.30 (4n) of the statutes is created to read:
AB411,4,1716 139.30 (4n) "Government issued identification" includes a valid driver's
17license, state identification card, passport, or military identification.
AB411, s. 14 18Section 14. 139.30 (8d) of the statutes is created to read:
AB411,4,2119 139.30 (8d) "Nonbonded direct marketer" means any person who acquires
20stamped cigarettes from the manufacturers or distributors, stores them, and sells
21them by direct marketing to consumers for their own personal use.
AB411, s. 15 22Section 15. 139.30 (10) of the statutes is amended to read:
AB411,4,2523 139.30 (10) "Retailer" means any person who sells, exposes for sale or possesses
24with intent to sell to consumers any cigarettes
has the meaning given in s. 134.66 (1)
25(g)
.
AB411, s. 16
1Section 16. 139.32 (1) of the statutes is amended to read:
AB411,5,82 139.32 (1) The tax imposed by s. 139.31 (1) shall be paid. To evidence the
3payment, the department shall provide stamps. A person who has paid the tax shall
4affix stamps of the proper denomination to each package in which cigarettes are
5packed, prior to the first sale within this state. First sale does not include a sale by
6a manufacturer to a distributor or to a bonded direct marketer or by a distributor to
7a permittee who has obtained department approval as provided for in s. 139.321 (1)
8(a) 2. The tax shall be paid only once on each package or container.
AB411, s. 17 9Section 17. 139.32 (5) of the statutes is amended to read:
AB411,5,1210 139.32 (5) Manufacturers, bonded direct marketers, and distributors having
11a permit from the secretary
who are authorized by the department to purchase tax
12stamps
shall receive a discount of 1.6% of the tax paid on stamp purchases.
AB411, s. 18 13Section 18. 139.32 (5m) of the statutes is amended to read:
AB411,5,1514 139.32 (5m) Distributors, bonded direct marketers, and manufacturers shall
15pay to the department the cost of printing and shipping those stamps.
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