AB43: Bill Text

AB43,2270 Section 2270 . 134.66 (2m) (a) of the statutes is amended to read:

AB43,1252,15 134.66 (2m) (a) Except as provided in par. (b), at the time that a retailer hires or contracts with an agent, employee, or independent contractor whose duties will include the sale of cigarettes, vapor products, or tobacco products, the retailer shall provide the agent, employee, or independent contractor with training on compliance with sub. (2) (a) and (am), including training on the penalties under sub. (4) (a) 2. for a violation of sub. (2) (a) or (am). The department of health services shall make available to any retailer on request a training program developed or approved by that department that provides the training required under this paragraph. A retailer may comply with this paragraph by providing the training program developed or approved by the department of health services or by providing a comparable training program approved by that department. At the completion of the training, the retailer and the agent, employee, or independent contractor shall sign a form provided by the department of health services verifying that the agent, employee, or independent contractor has received the training, which the retailer shall retain in the personnel file of the agent, employee, or independent contractor.

AB43,2271 Section 2271. 134.66 (3) of the statutes is amended to read:

AB43,1252,22 134.66 (3) Defense; sale to minor. Proof of all of the following facts by a retailer, manufacturer, distributor, jobber, or subjobber, an agent, employee, or independent contractor of a retailer, manufacturer, distributor, jobber, or subjobber, or an agent or employee of an independent contractor who sells cigarettes or, tobacco products, or vapor products to a person under the age of 18 21 is a defense to any prosecution, or a complaint made under s. 134.65 (7), for a violation of sub. (2) (a):

AB43,1252,24 (a) That the purchaser falsely represented that he or she had attained the age of 18 21 and presented an identification card.

AB43,1253,2 (b) That the appearance of the purchaser was such that an ordinary and prudent person would believe that the purchaser had attained the age of 18 21.

AB43,1253,5 (c) That the sale was made in good faith, in reasonable reliance on the identification card and appearance of the purchaser and in the belief that the purchaser had attained the age of 18 21.

AB43,2272 Section 2272 . 139.345 (3) (a) (intro.) of the statutes is amended to read:

AB43,1253,8 139.345 (3) (a) (intro.) Verifies the consumer's name and address and that the consumer is at least 18 21 years of age by any of the following methods:

AB43,2273 Section 2273 . 139.345 (3) (b) 2. of the statutes is amended to read:

AB43,1253,12 139.345 (3) (b) 2. That the consumer understands that no person who is under 18 21 years of age may purchase or possess cigarettes or falsely represent his or her age for the purpose of receiving cigarettes, as provided under s. 254.92.

AB43,2274 Section 2274 . 139.345 (7) (a) of the statutes is amended to read:

AB43,1253,21 139.345 (7) (a) No person may deliver a package of cigarettes sold by direct marketing to a consumer in this state unless the person making the delivery receives a government issued identification card from the person receiving the package and verifies that the person receiving the package is at least 18 21 years of age. If the person receiving the package is not the person to whom the package is addressed, the person delivering the package shall have the person receiving the package sign a statement that affirms that the person to whom the package is addressed is at least 18 21 years of age.

AB43,2275 Section 2275. 139.44 (4) of the statutes is amended to read:

AB43,1254,2 139.44 (4) Any person who refuses to permit the examination or inspection authorized in s. 139.39 (2) or 139.83 (1) may be fined not more than $500 or imprisoned not more than 90 days or both. Such refusal shall be cause for immediate suspension or revocation of permit by the secretary.

AB43,2276 Section 2276. Subchapter III (title) of chapter 139 [precedes 139.75] of the statutes is amended to read:

AB43,1254,5 CHAPTER 139

AB43,1254,8 SUBCHAPTER III TOBACCO PRODUCTS TAX and vapor products taxes

AB43,2277 Section 2277 . 139.75 (1m) of the statutes is created to read:

AB43,1254,13 139.75 (1m) “Cigar” means a roll, of any size or shape, of tobacco for smoking that is made wholly or in part of tobacco, regardless of whether the tobacco is pure, flavored, adulterated, or mixed with an ingredient, if the roll has a wrapper made wholly or in part of tobacco.

AB43,2278 Section 2278 . 139.75 (4t) of the statutes is created to read:

AB43,1254,16 139.75 (4t) “Little cigar” means a cigar that has an integrated cellulose acetate filter and is wrapped in a substance containing tobacco.

AB43,2279 Section 2279 . 139.75 (5b) of the statutes is created to read:

AB43,1255,4 139.75 (5b) “Manufacturer's list price" means the total price of tobacco products charged by the manufacturer or other seller to an unrelated distributor. The total price shall include all charges by the manufacturer or other seller that are necessary to complete the sale. The total price may not be reduced by any cost or expense, regardless of whether the cost or expense is separately stated on an invoice, that is incurred by the manufacturer or other seller, including fees, delivery, freight, transportation, packaging, handling, marketing, federal excise taxes, and import fees or duties. The total price may not be reduced by the value or cost of discounts or free promotional or sample products. For purposes of this subsection, a manufacturer or other seller is related to a distributor if the 2 parties have significant common purposes and either substantial common membership or, directly or indirectly, substantial common direction or control.

AB43,2280 Section 2280. 139.75 (12) of the statutes is amended to read:

AB43,1255,13 139.75 (12) “Tobacco products" means cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco; snuff, including moist 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 (1m).

AB43,2281 Section 2281. 139.75 (14) of the statutes is renumbered 139.75 (14) (a) and amended to read:

AB43,1255,22 139.75 (14) (a) “Vapor product” means a noncombustible product that produces vapor or aerosol for inhalation from the application of a heating element to a liquid or other substance that is depleted as the product is used, regardless of whether the liquid or other substance contains nicotine, which may or may not contain nicotine, that employs a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, regardless of shape or size, that can be used to produce vapor from a solution or other substance.

AB43,2282 Section 2282. 139.75 (14) (b) and (c) of the statutes are created to read:

AB43,1255,24 139.75 (14) (b) “Vapor product” includes all of the following:

AB43,1256,2 1. An electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.

AB43,1256,6 2. Any cartridge or other container of a solution or other substance, which may or may not contain nicotine, that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.

AB43,1256,9 (c) “Vapor product” does not include a product regulated as a drug or device under sections 501 to 524A of the federal food, drug, and cosmetic act, 21 USC 351 to 360n-1.

AB43,2283 Section 2283. 139.76 (1) of the statutes is amended to read:

AB43,1257,4 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of tobacco products by any person engaged as a distributor of them at the rate, for tobacco products, not including moist snuff and vapor products, of 71 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products and, for moist snuff, at the rate of 100 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products. The tax imposed under this subsection on cigars shall not exceed an amount equal to 50 cents for each cigar. On products imported from another country, not including moist snuff and vapor products, the rate of tax is 71 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties and transportation costs to the United States. On moist snuff imported from another country, the rate of the tax is 100 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties, and transportation costs to the United States. The tax attaches at the time the tobacco products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the tobacco products. All tobacco products received in this state for sale or distribution within this state, except tobacco products actually sold as provided in sub. (2), shall be subject to such tax.

AB43,2284 Section 2284 . 139.76 (1) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

AB43,1257,18 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of tobacco products by any person engaged as a distributor of them at the rate, for tobacco products, not including moist snuff and vapor products little cigars, of 71 percent of the manufacturer's list price and, for moist snuff, at the rate of 100 percent of the manufacturer's list price. The tax imposed under this subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. The tax attaches at the time the tobacco products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the tobacco products. All tobacco products received in this state for sale or distribution within this state, except tobacco products actually sold as provided in sub. (2), shall be subject to such tax.

AB43,2285 Section 2285 . 139.76 (1b) of the statutes is created to read:

AB43,1258,2 139.76 (1b) The tax under sub. (1) is imposed on little cigars at the rate of 126 mills on each little cigar, regardless of weight. To evidence payment of the tax imposed under this section on little cigars, the department shall provide stamps. A person who has paid the tax shall affix stamps of the proper denomination to each package in which little cigars are packed, prior to the first sale within this state. Section 139.32 as it applies to the tax under s. 139.31 applies to the tax imposed under this section on little cigars.

AB43,2286 Section 2286. 139.76 (1m) of the statutes is amended to read:

AB43,1258,17 139.76 (1m) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of vapor products by any person engaged as a distributor of them at the rate of 5 cents per milliliter of the liquid or other substance based on the volume as listed by the manufacturer and at a proportionate rate for any other quantity or fractional part thereof 71 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products. On vapor products imported from another country, the rate of tax is 71 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties, and transportation costs to the United States. The tax attaches at the time the vapor products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the vapor products. All vapor products received in this state for sale or distribution within this state, except those actually sold as provided in sub. (2), shall be subject to such tax.

AB43,2287 Section 2287. 139.77 (1) of the statutes is amended to read:

AB43,1259,3 139.77 (1) On or before the 15th day of each month, every distributor with a place of business in this state shall file a return showing the quantity , including milliliters in the case of a vapor product, and taxable price of each tobacco product or vapor product brought, or caused to be brought, into this state for sale; or made, manufactured or fabricated in this state for sale in this state, during the preceding month. Every distributor outside this state shall file a return showing the quantity, including milliliters in the case of a vapor product, and taxable price of each tobacco product or vapor product shipped or transported to retailers in this state to be sold by those retailers during the preceding month. At the time that the return is filed, the distributor shall pay the tax.

AB43,2288 Section 2288. 139.78 (1) of the statutes is amended to read:

AB43,1259,13 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco products in this state at the rate, for tobacco products, not including moist snuff and vapor products, of 71 percent of the cost of the tobacco products manufacturer's list price and, for moist snuff, at the rate of 100 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products. The tax imposed under this subsection on cigars shall not exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are exempt from the tobacco products tax under s. 139.76 (2).

AB43,2289 Section 2289 . 139.78 (1) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

AB43,1259,23 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco products in this state at the rate, for tobacco products, not including moist snuff and vapor products little cigars, of 71 percent of the manufacturer's list price and, for moist snuff, at the rate of 100 percent of the manufacturer's list price. The tax imposed under this subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are exempt from the tobacco products tax under s. 139.76 (2).

AB43,2290 Section 2290 . 139.78 (1b) of the statutes is created to read:

AB43,1260,5 139.78 (1b) A tax is imposed and levied upon the use or storage of little cigars in this state by any person for any purpose. The tax is levied and shall be collected at the same rate as provided for in s. 139.76 (1b). The tax under this subsection does not apply if the tax imposed by s. 139.76 (1) has been paid or if the little cigars are exempt from tax under s. 139.76 (2).

AB43,2291 Section 2291. 139.78 (1m) of the statutes is amended to read:

AB43,1260,14 139.78 (1m) A tax is imposed upon the use or storage by consumers of vapor products in this state at the rate of 5 cents per milliliter of the liquid or other substance based on the volume as listed by the manufacturer and at a proportionate rate for any other quantity or fractional part thereof 71 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products. The tax does not apply if the tax imposed by s. 139.76 (1m) on the vapor products has been paid or if the vapor products are exempt from the vapor products tax under s. 139.76 (2).

AB43,2292 Section 2292 . 139.83 of the statutes is renumbered 139.83 (1).

AB43,2293 Section 2293 . 139.83 (2) of the statutes is created to read:

AB43,1260,20 139.83 (2) Sections 139.315, 139.32, 139.321, 139.322, 139.34, 139.35, 139.36, 139.362, 139.363, 139.38, 139.395, 139.41, 139.42, 139.43, and 139.44 (8), as they apply to the taxes under subch. II, apply to the administration and enforcement of this subchapter for little cigars.

AB43,2294 Section 2294 . Subchapter IV of chapter 139 [precedes 139.97] of the statutes is created to read:

AB43,1260,23 chapter 139

AB43,1260,24 subchapter Iv

AB43,1260,25 marijuana tax and regulation

AB43,1261,1 139.97 Definitions. In this subchapter:

AB43,1261,2 (1) “Department" means the department of revenue.

AB43,1261,5 (2) “Lot" means a definite quantity of marijuana or usable marijuana identified by a lot number, every portion or package of which is consistent with the factors that appear in the labeling.

AB43,1261,7 (3) “Lot number" means a number that specifies the person who holds a valid permit under this subchapter and the harvesting or processing date for each lot.

AB43,1261,8 (4) “Marijuana" has the meaning given in s. 961.70 (2).

AB43,1261,12 (5) “Marijuana distributor” means a person in this state who purchases or receives usable marijuana from a marijuana processor and who sells or otherwise transfers the usable marijuana to a marijuana retailer for the purpose of resale to consumers.

AB43,1261,16 (6) “Marijuana processor" means a person in this state who processes marijuana into usable marijuana, packages and labels usable marijuana for sale in retail outlets, and sells at wholesale or otherwise transfers usable marijuana to marijuana distributors.

AB43,1261,18 (7) “Marijuana producer" means a person in this state who produces marijuana and sells it at wholesale or otherwise transfers it to marijuana processors.

AB43,1261,20 (8) “Marijuana retailer" means a person in this state that sells usable marijuana at a retail outlet.

AB43,1261,23 (9) “Microbusiness” means a marijuana producer that produces marijuana in one area that is less than 10,000 square feet and who also operates as any 2 of the following:

AB43,1261,24 (a) A marijuana processor.

AB43,1261,25 (b) A marijuana distributor.

AB43,1262,1 (c) A marijuana retailer.

AB43,1262,4 (10) “Permittee" means a marijuana producer, marijuana processor, marijuana distributor, marijuana retailer, or microbusiness that is issued a permit under s. 139.972.

AB43,1262,5 (11) “Retail outlet" means a location for the retail sale of usable marijuana.

AB43,1262,6 (12) “Sales price" has the meaning given in s. 77.51 (15b).

AB43,1262,9 (13) “Usable marijuana" means marijuana that has been processed for human consumption and includes dried marijuana flowers, marijuana-infused products, and marijuana edibles.

AB43,1262,14 139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana producer at the rate of 15 percent of the sales price on each wholesale sale or transfer in this state of marijuana to a marijuana processor. This paragraph applies to a microbusiness that transfers marijuana to a processing operation within the microbusiness.

AB43,1262,18 (b) An excise tax is imposed on a marijuana retailer at the rate of 10 percent of the sales price on each retail sale in this state of usable marijuana, except that the tax does not apply to sales of usable marijuana to an individual who holds a valid tax exemption certificate issued under s. 73.17 (4).

AB43,1262,22 (2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes to the department no later than the 15th day of the month following the month in which the person's tax liability is incurred and shall include with the payment a return on a form prescribed by the department.

AB43,1263,2 (3) For purposes of this section, a marijuana producer may not sell marijuana directly to a marijuana distributor or marijuana retailer, and a marijuana retailer may purchase usable marijuana for resale only from a marijuana distributor. This subsection does not apply to a microbusiness that transfers marijuana or usable marijuana to another operation with the microbusiness.

AB43,1263,8 139.972 Permits required. (1) (a) No person may operate in this state as a marijuana producer, marijuana processor, marijuana distributor, marijuana retailer, or microbusiness without first filing an application for and obtaining the proper permit from the department to perform such operations. In addition, no person may operate in this state as a marijuana producer or marijuana processor without first filing an application for and obtaining the proper permit under s. 94.56.

AB43,1263,11 (b) This section applies to all officers, directors, agents, and stockholders holding 5 percent or more of the stock of any corporation applying for a permit under this section.

AB43,1263,13 (c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may not be granted to any person to whom any of the following applies:

AB43,1263,15 1. The person has been convicted of a violent misdemeanor, as defined in s. 941.29 (1g) (b), at least 3 times.

AB43,1263,17 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g) (a), unless pardoned.

AB43,1263,19 3. During the preceding 3 years, the person has been committed under s. 51.20 for being drug dependent.

AB43,1263,24 4. The person chronically and habitually uses alcohol beverages or other substances to the extent that his or her normal faculties are impaired. A person is presumed to chronically and habitually use alcohol beverages or other substances to the extent that his or her normal faculties are impaired if, within the preceding 3 years, any of the following applies:

AB43,1264,2 a. The person has been committed for involuntary treatment under s. 51.45 (13).