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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 273
May 17, 2023 - Introduced by Representatives SPIROS, DRAKE, C. ANDERSON,
BALDEH, CONLEY, CONSIDINE, DONOVAN, GOYKE, GREEN, GUNDRUM, MACCO,
PALMERI, O'CONNOR, OHNSTAD, STEFFEN, SUBECK, SUMMERFIELD and WITTKE,
cosponsored by Senators WANGGAARD, TAYLOR, COWLES and JAMES. Referred to
Committee on State Affairs.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to renumber 565.02 (8) (e); to renumber and amend 125.02 (6), 134.65
(1), 134.65 (1m) and 565.02 (8) (f); to amend 40.02 (48) (am) 19., 40.02 (48) (c),
71.78 (1), 71.78 (4) (b), 71.78 (5), 71.78 (6), 72.06, 73.031, 77.61 (5) (b) 2., 77.61
(5) (c), 77.61 (5) (d), 78.80 (3), 125.04 (3) (h), 125.04 (4), 134.65 (title), 134.65 (1r),
134.65 (4), 134.65 (5m), 134.65 (8), 134.66 (1) (g), 139.11 (4) (a) (intro.), 139.38
(6), 139.44 (2), 139.44 (8) (a), 139.44 (8) (b) and (c), 139.82 (6), 230.36 (1m) (b)
2. (intro.), 230.36 (2m) (a) 9., 565.17 (5) (a), 565.40 (title), 565.50 (2), 565.50 (3)
and 946.82 (4); and to create 71.78 (1g), 71.78 (4) (v), 71.83 (6), 73.03 (51b),
77.61 (5) (am), 77.61 (5) (b) 15., 125.02 (1c), 125.02 (6) (b), 125.04 (8m), 125.09
(8), 125.12 (7), 134.65 (1a), 134.65 (1g), 134.65 (1m) (a) 1. and 2., 134.65 (1m)
(b), 134.65 (2m), 134.65 (3m), 139.44 (2m), 139.44 (8) (am), 139.44 (8) (d), 565.01
(6c), 565.02 (9) (intro.), 565.17 (5) (d), 565.40 (4), 565.50 (2m) and 565.50 (4) of
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the statutes; relating to: Department of Revenue enforcement and providing
a penalty.
Analysis by the Legislative Reference Bureau
This bill makes the following changes related to the Department of Revenue's
enforcement and administration of the laws under its purview:
License to sell cigarettes or tobacco products
The bill creates requirements relating to retail licenses to sell cigarettes or
tobacco products.
Under current law, a person must obtain an annual license from the person's
city, village, or town (municipality) before selling cigarettes or tobacco products.
Under the bill, DOR must create an application form for such licenses. The form
must include the applicant's history relevant to the applicant's fitness to hold a
license; the kind of retailer license for which the applicant is applying; the premises
where cigarettes or tobacco products will be sold or stored; if the applicant is a
corporation, the identity of the corporate officers and agent; if the applicant is a
limited liability company, the identity of the company members or managers and
agent; the applicant's trade name, if any; whether the applicant will sell, exchange,
barter, dispose of, or give away the cigarette or tobacco products over the counter or
in a vending machine, or both; and any other information required by DOR.
The bill requires an applicant for a retail license to sell cigarettes or tobacco
products to use the form created by DOR. An applicant must also sign the application
and notify the municipality of any changes in information to the application within
30 days of the change. In addition, the bill requires the municipality to keep all
submitted applications for at least four years.
Under the bill, a retail license to sell cigarettes or tobacco may be issued only
if the applicant has not been a habitual law offender or been convicted of a felony,
unless pardoned, and the applicant has submitted the proof required by DOR under
current law relating to the collection of sales and use tax. If the applicant is a
business entity that has been convicted of a crime, the business entity may not
receive a retail license unless it has terminated its relationship with the individuals
whose actions directly contributed to the conviction.
The bill also requires municipalities that issue retail licenses to sell cigarettes
or tobacco to submit a list annually to DOR with a list of those licenses and certain
information relating to the licenses and licensees, which DOR must post on its
website.
Finally, the bill requires a licensee to place the licensee's retail license in a
frame with a transparent front and to conspicuously display the license at all times
in the room or place where the licensed activity takes place.
License to sell electronic vaping devices
This bill requires a person who sells electronic vaping devices to obtain a
cigarette and tobacco products retailer license. Specifically, the bill requires a
retailer who sells or offers for sale electronic vaping devices to obtain an annual
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license from the clerk of the city, village, or town where the retailer is located. The
bill defines an “electronic vaping device” as a device that may be used to deliver any
aerosolized or vaporized liquid or other substance for inhalation, regardless of
whether the liquid or other substance contains nicotine.
Definition of fermented malt beverages
The bill expands the definition of fermented malt beverages.
Under current law, alcohol beverages that do not meet the definition of
fermented malt beverages are considered intoxicating liquor. Fermented malt
beverages are defined as any beverage made by the alcohol fermentation of an
infusion in potable water of barley malt and hops, with or without unmalted grains
or decorticated and degerminated grains or sugar containing 0.5 percent or more of
alcohol by volume.
This bill expands the definition of a fermented malt beverage to include any
beverage that is recognized under federal regulations as beer, except sake or similar
products.
Publishing a list of retail licenses
The bill requires DOR to publish a list of retail licensees on DOR's website.
Under current law, DOR issues alcohol beverage permits, and municipalities
issue alcohol beverage licenses. Each municipality must annually provide DOR with
a list of the municipality's retail licensees, including name, address, and type of
license. The bill requires DOR to publish this list on DOR's website.
Criminal history search fee
The bill requires an applicant for an alcohol beverages permit issued by DOR
to pay to DOR the criminal history search fee associated with the application.
Under current law, DOR may not issue an alcohol beverages permit to an
applicant that has a disqualifying criminal record. The Department of Justice
charges a fee for a criminal history search. This bill requires the permit applicant
to pay this criminal history search fee incurred by DOR.
Tax return information disclosure
The bill authorizes employees of DOR and DOJ to disclose tax return
information under certain circumstances.
Under the bill, DOR employees may, in connection with their official duties,
disclose tax return information to the extent that the disclosure is necessary to
obtain information for the enforcement of Wisconsin's tax laws. The disclosure must
be strictly limited to, and used solely for the purposes of, obtaining information
necessary for an audit, collection, inspection, or investigation by the DOR employee.
The bill authorizes DOJ employees to disclose, in connection with their official
duties, the tax return information, other than copies of information, they are
authorized to access under current law to a law enforcement investigator
participating in a DOJ investigation. The disclosure must be strictly limited to, and
used solely for the purposes of, obtaining information necessary for a DOJ
investigation.
The bill also specifies that federal and Wisconsin grand juries are authorized
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ASSEMBLY BILL 273
Lottery
Under current law, no employee of the Lottery Division of DOR may purchase
a lottery ticket or lottery share. The bill allows such an employee to purchase a
lottery ticket or a lottery share, if the purchase is made on behalf of the Lottery
Division of DOR as part of an official lottery investigation.
Also under current law, if a person alters or forges a lottery ticket, or utters or
transfers an altered or forged lottery ticket, the person is guilty of a Class I felony.
The bill adds that if a person counterfeits or illegally obtains a lottery ticket, or utters
or transfers a counterfeit or illegally obtained lottery ticket, the person is also guilty
of a Class I felony. The bill also provides that any person who claims a lottery prize
from a winning lottery ticket or share and then transfers the same winning lottery
ticket or share to another person is guilty of a Class I felony.
Under current law, a person who possesses an altered or forged lottery ticket
or share with intent to defraud is guilty of a misdemeanor, subject to a fine of not more
than $10,000 or imprisonment for not more than nine months or both. The bill adds
that a person who possesses a counterfeit, illegally obtained, or previously redeemed
lottery ticket is also guilty of a misdemeanor, subject to a fine of not more than
$10,000 or imprisonment for not more than nine months or both.
Under current law, lottery winnings are subject to withholdings for state taxes,
child support, spousal support, maintenance or family support, assessments, fines,
restitution, and surcharges. Under the bill, if a person transfers a winning lottery
ticket to another person or claims a lottery prize from a transferred ticket with the
intent to avoid these withholdings, the person is guilty of a misdemeanor, subject to
a fine of not more than $10,000 or imprisonment for not more than nine months or
both.
Finally, the bill provides the special agents of DOR with all necessary police and
peace officer powers to prevent and enforce violations of the lottery law, including the
power to make an arrest under conditions set forth under current law for a law
enforcement officer to make an arrest. Under current law, a law enforcement officer
may arrest a person if the officer has a warrant for the person's arrest or has
reasonable grounds to believe that this state or another state has issued a warrant
for the person's arrest. In addition, a law enforcement officer may arrest a person
if the officer has reasonable grounds to believe that the person is committing or has
committed a crime.
Possession of alcohol vapor devices
The bill prohibits a person from using, possessing, or selling an alcohol vapor
device, which is a device that turns an alcohol beverage into a vapor or mist to be
inhaled.
Penalties for evading excise taxes and unlawful possession of cigarettes
The bill increases the penalties for evading the excise taxes imposed on
cigarettes, tobacco products, and electronic vaping devices.
Under current law, a person who attempts to evade these taxes, or who aids in
or abets the evasion or attempted evasion of these taxes, may be fined not more than
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Under the bill, a person who evades or attempts to evade these taxes, or who
aids in or abets the evasion or attempted evasion of these taxes, is guilty of the
following:
1. A Class A misdemeanor if the amount of the tax is no more than $2,500.
2. A Class I felony if the amount of the tax is more than $2,500, but no more
than $5,000.
3. A Class H felony if the amount of the tax is more than $5,000, but no more
than $10,000.
4. A Class G felony if the amount of the tax is more than $10,000, but no more
than $100,000.
5. A Class F felony if the amount of tax is more than $100,000.
The bill also increases the penalties for the unlawful possession of cigarettes.
Under current law, a person who unlawfully possesses up to 6,000 cigarettes is
subject to a fine of not more than $200 or imprisonment for not more than six months,
or both. A person who unlawfully possesses more than 6,000 cigarettes but no more
than 36,000 cigarettes is subject to a fine of not more than $1,000 or imprisonment
for not more than one year in county jail, or both. A person who unlawfully possesses
more than 36,000 cigarettes is guilty of a Class I felony.
Under the bill, the penalties are increased as follows:
1. A person who unlawfully possesses no more than 200 cigarettes may be fined
not more than $200 or imprisoned for not more than six months, or both.
2. A person who unlawfully possesses more than 200 cigarettes but no more
than 3,000 cigarettes may be fined not more than $1,000 or imprisoned for not more
than one year, or both.
3. A person who unlawfully possesses more than 3,000 cigarettes but no more
than 5,000 cigarettes is guilty of a Class I felony.
4. A person who unlawfully possesses more than 5,000 cigarettes but no more
than 10,000 cigarettes is guilty of a Class H felony.
5. A person who unlawfully possesses more than 10,000 cigarettes is guilty of
a Class F felony.
The bill also amends the definition of “racketeering activity" for purposes of the
Wisconsin Organized Crime Control Act to include the attempt, conspiracy to
commit, or commission of the felonies created under the bill related to evading excise
taxes and unlawful possession of cigarettes.
Alcohol beverage permit reapplication
The bill provides that, if DOR refuses to issue, refuses to renew, or revokes an
alcohol beverages permit, the applicant or permit holder may not reapply to DOR for
the permit for a period of six months.
Notice of change filed by alcohol beverage licensee or permittee
Under current law, within ten days of any change in a fact set out in an
application for a license or permit to sell alcohol beverages, the licensee or permittee
must file with the issuing municipality or DOR, as applicable, a written description
of the changed fact. This bill extends the deadline for this filing from ten days to 30
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Sales suppression devices and phantomware
Under the bill, any person who creates, designs, manufactures, sells,
purchases, leases, installs, updates, repairs, services, transfers, uses, or possesses
in this state or accesses from this state phantomware or an automated sales
suppression device, unless for a legitimate purpose, is guilty of a Class D felony. The
bill also authorizes DOR to revoke any permit, license, or certificate issued by DOR
for up to 10 years for violating this prohibition.
Under the bill, an “automated sales suppression device” is a software program
that falsifies the electronic records of electronic cash registers and other
point-of-sale systems. The bill defines “phantomware” as a programming option
embedded in the operating system of an electronic cash register, or hardwired into
an electronic cash register, that can be used to create a virtual second electronic cash
register or eliminate or manipulate transaction records. Automated sales
suppression devices and phantomware are typically used to evade the payment of
taxes.
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:
SECTION 1. 40.02 (48) (am) 19. of the statutes is amended to read:
40.02 (48) (am) 19. An excise tax investigator A special agent employed by the
department of revenue who is authorized to act under s. 73.031.
SECTION 2. 40.02 (48) (c) of the statutes is amended to read:
40.02 (48) (c) In s. 40.65, “protective occupation participant" means a
participating employee who is a police officer, fire fighter, an individual determined
by a participating employer under par. (a) or (bm) to be a protective occupation
participant, county undersheriff, deputy sheriff, state probation and parole officer,
county traffic police officer, conservation warden, state forest ranger, field
conservation employee of the department of natural resources who is subject to call
for forest fire control or warden duty, member of the state traffic patrol, state motor
vehicle inspector, University of Wisconsin System full-time police officer, guard or
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any other employee whose principal duties are supervision and discipline of inmates
at a state penal institution, excise tax investigator special agent employed by the
department of revenue who is authorized to act under s. 73.031, person employed
under s. 60.553 (1), 61.66 (1), or 62.13 (2e) (a), or special criminal investigation agent
employed by the department of justice.
SECTION 3. 71.78 (1) of the statutes is amended to read:
71.78 (1) DIVULGING INFORMATION. Except as provided in subs. (1g), (4), (4m),
(10), and (11), no person may divulge or circulate or offer to obtain, divulge, or
circulate any information derived from an income, franchise, withholding, fiduciary,
partnership, or limited liability company tax return or tax credit claim, including
information which may be furnished by the department as provided in this section.
This subsection does not prohibit publication by any newspaper of information
lawfully derived from such returns or claims for purposes of argument or prohibit
any public speaker from referring to such information in any address. This
subsection does not prohibit the department from publishing statistics classified so
as not to disclose the identity of particular returns, or claims or reports and the items
thereof. This subsection does not prohibit employees or agents of the department of
revenue from offering or submitting any return, including joint returns of a spouse
or former spouse, separate returns of a spouse, individual returns of a spouse or
former spouse, and combined individual income tax returns, or from offering or
submitting any claim, schedule, exhibit, writing, or audit report or a copy of, and any
information derived from, any of those documents as evidence into the record of any
contested matter involving the department in proceedings or litigation on state tax
matters if, in the department's judgment, that evidence has reasonable probative
value.
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SECTION 4. 71.78 (1g) of the statutes is created to read:
71.78 (1g) PERMISSIBLE DISCLOSURE BY DEPARTMENT EMPLOYEES. An employee of
the department may, in connection with the employee's official duties, disclose
information derived from a return or claim specified in sub. (1) to the extent that the
disclosure is necessary to obtain information for the enforcement of the tax laws of
this state. The information that may be disclosed under this subsection shall be
strictly limited to, and used solely for the purposes of, obtaining information
necessary for an audit, collection, inspection, or investigation by the employee.
SECTION 5. 71.78 (4) (b) of the statutes is amended to read:
71.78 (4) (b) The attorney general and department of justice employees. A
department of justice employee may, in connection with the employee's official
duties, disclose information, other than copies of information, examined under this
paragraph to a law enforcement investigator participating in a department of justice
investigation of suspected criminal conduct. The information that may be disclosed
under this paragraph shall be strictly limited to, and used solely for the purposes of,
obtaining information necessary for a department of justice investigation.
SECTION 6. 71.78 (4) (v) of the statutes is created to read:
71.78 (4) (v) A federal grand jury or grand jury of this state, upon receipt by
the department of a grand jury subpoena.
SECTION 7. 71.78 (5) of the statutes is amended to read:
71.78 (5) AGREEMENT WITH DEPARTMENT. Copies of returns and claims specified
in sub. (1) and related schedules, exhibits, writings or audit reports shall not be
furnished to the persons listed under sub. (4), except persons under sub. (4) (e), (k),
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(n), (o) and, (q), and (v) or under an agreement between the department of revenue
and another agency of government.
SECTION 8. 71.78 (6) of the statutes is amended to read:
71.78 (6) RESTRICTION ON USE OF INFORMATION. The use of information obtained
under sub. (4) or (5) is restricted to the discharge of duties imposed upon the persons
by law or by the duties of their office or by order of a court as provided under sub. (4)
(f) or (v).
SECTION 9. 71.83 (6) of the statutes is created to read:
71.83 (6) AUTOMATED SALES SUPPRESSION DEVICES AND PHANTOMWARE. (a)
Definitions. In this subsection:
1. “Automated sales suppression device" means a software program, including
programs accessed through the Internet or by any other means, that falsifies the
electronic records, including transaction data and transaction reports, of electronic
cash registers and other point-of-sale systems.
2. “Electronic cash register" means a device that keeps a register or supporting
documents by means of an electronic device or computer system designed to record
transaction data for the purpose of computing, compiling, or processing retail sales
transaction data or transaction reports.
3. “Phantomware" means a programming option embedded in the operating
system of an electronic cash register, or hardwired into an electronic cash register,
that can be used to create a virtual second electronic cash register or eliminate or
manipulate transaction records that may or may not be preserved in digital formats
to represent the true or manipulated record of transactions in the electronic cash
register.
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4. “Transaction data" includes items purchased by a customer, the price for
each item, a taxability determination for each item, a segregated tax amount for each
of the taxed items, the amount of cash or credit tendered, the net amount returned
to the customer in change, the date and time of the purchase, the name, address, and
identification number of the vendor, and the receipt or invoice number of the
transaction.
5. “Transaction report" means a report that includes the sales, taxes collected,
media totals, and discount voids at an electronic cash register that is printed on cash
register tape at the end of a day or shift or a report documenting every action at an
electronic cash register that is stored electronically.
(b) Automated sales suppression devices and phantomware. Any person who
creates, designs, manufactures, sells, purchases, leases, installs, updates, repairs,
services, transfers, uses, or possesses in this state or accesses from this state
phantomware or an automated sales suppression device, unless for a legitimate
purpose, is guilty of a Class D felony.
SECTION 10. 72.06 of the statutes is amended to read:
72.06 Sections 71.78 (1), (1g), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m.
apply to any information obtained from any person by the department on a death tax
return, report, schedule, exhibit or other document or from an audit report
pertaining to the tax return.
SECTION 11. 73.03 (51b) of the statutes is created to read:
73.03 (51b) To revoke all permits, licenses, and certificates that the
department has issued to a person for up to 10 years for violating s. 71.83 (6) (b).
SECTION 12. 73.031 of the statutes is amended to read:
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73.031 Arrest powers; authority. A special agent of the department of
revenue who has been certified as a law enforcement officer by the law enforcement
standards board and who is on duty may arrest a person if the special agent believes,
on reasonable grounds, that a warrant for the person's arrest has been issued in this
state, that a felony warrant has been issued in another state, that the person is
violating or has violated under the conditions set forth in s. 968.07. Pursuant to s.
175.38, special agents may investigate violations of s. 945.03 (2m) or, 945.04 (2m),
or that the person is violating or has violated s. 945.05 (1m) in a case in which the
department determines that the video gambling machine involved is likely to be used
in connection with a violation of s. 945.03 (2m) or 945.04 (2m) or if a crime has been
committed in the presence of the special agent. The special agent shall cause the
person arrested and the documents and reports pertaining to the arrest to be
delivered to the chief of police or sheriff in the jurisdiction where the arrest is made.
The special agent shall be available as a witness for the state. A special agent acting
under this section is an employee of the department and is subject to its direction,
benefits and legal protection.
SECTION 13. 77.61 (5) (am) of the statutes is created to read:
77.61 (5) (am) Notwithstanding par. (a), an employee of the department may,
in connection with the employee's official duties, disclose information derived from
a return specified in par. (a) to the extent that the disclosure is necessary for the
enforcement of the tax laws of this state. The disclosure shall be limited to the
information relevant to a particular matter in connection with an audit, collection,
inspection, or investigation.
SECTION 14. 77.61 (5) (b) 2. of the statutes is amended to read:
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77.61 (5) (b) 2. The attorney general and department of justice employees. A
department of justice employee may, in connection with the employee's official
duties, disclose information derived under this subdivision to a law enforcement
investigator participating in a department of justice investigation. The disclosure
shall be limited to the information relevant to a particular matter in connection with
the department of justice investigation.
SECTION 15. 77.61 (5) (b) 15. of the statutes is created to read:
77.61 (5) (b) 15. A federal grand jury or grand jury of this state, upon receipt
by the department of a grand jury subpoena.
SECTION 16. 77.61 (5) (c) of the statutes is amended to read:
77.61 (5) (c) Copies of sales tax or use tax returns, schedules, exhibits, writings
or audit reports shall not be furnished to the persons listed under par. (b), except
persons under par. (b) 5. or 15. or under an agreement between the department and
another agency of government.
SECTION 17. 77.61 (5) (d) of the statutes is amended to read:
77.61 (5) (d) The use of information obtained under par. (b) or (c) is restricted
to the discharge of duties imposed upon the persons by law or by the duties of their
office or by order of a court as specified under par. (b) 6. or 15.
SECTION 18. 78.80 (3) of the statutes is amended to read:
78.80 (3) Sections 71.78 (1), (1g), and (4) to (9) and 71.83 (2) (a) 3., relating to
confidentiality of income and franchise tax returns, apply to any information
obtained from any person on a motor vehicle fuel, general aviation fuel or alternate
fuels tax return, report, schedule, exhibit, or other document or from an audit report
pertaining to the same.
SECTION 19. 125.02 (1c) of the statutes is created to read:
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125.02 (1c) “Alcohol vapor device" means any device that provides for the use
of air or oxygen bubbled through an alcohol beverage to produce a vapor or mist that
allows the user to inhale this alcoholic vapor through the mouth or nose.
SECTION 20. 125.02 (6) of the statutes is renumbered 125.02 (6) (intro.) and
amended to read:
125.02 (6) (intro.) “Fermented malt beverages" means any of the following:
(a) Any beverage made by the alcohol fermentation of an infusion in potable
water of barley malt and hops, with or without unmalted grains or decorticated and
degerminated grains or sugar containing 0.5 percent or more of alcohol by volume.
SECTION 21. 125.02 (6) (b) of the statutes is created to read:
125.02 (6) (b) Any beverage recognized by the federal department of the
treasury as beer under 27 CFR 25.11, except sake or similar products.
SECTION 22. 125.04 (3) (h) of the statutes is amended to read:
125.04 (3) (h) Subsequent changes. Within 10 30 days of any change in any fact
set out in an application for a license or permit to sell alcohol beverages, the licensee
or permittee shall file with the issuing authority a written description of the changed
fact.
SECTION 23. 125.04 (4) of the statutes is amended to read:
125.04 (4) LIST OF LICENSEES. By July 15 annually, the clerk of a municipality
issuing licenses shall mail to the department a list containing the name, address, and
trade name of each person holding a license issued by that municipality, other than
a manager's or operator's license or a license issued under s. 125.26 (6), the type of
license held, and, if the person holding the license is a corporation or limited liability
company, the name of the agent appointed under sub. (6). The department shall
annually publish this list on the department's website.
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SECTION 24. 125.04 (8m) of the statutes is created to read:
125.04 (8m) PAYMENT OF CRIMINAL HISTORY FEES. Any fees incurred by the
department under s. 165.82 (1) (am) for purposes of verifying a permit applicant's
eligibility under sub. (5) (a) 1. and (b) shall be paid by the applicant to the department
upon application for the permit.
SECTION 25. 125.09 (8) of the statutes is created to read:
125.09 (8) ALCOHOL VAPOR DEVICES. No person may use or offer for use, possess,
or sell or offer for sale in this state an alcohol vapor device.
SECTION 26. 125.12 (7) of the statutes is created to read:
125.12 (7) REAPPLICATION FOR PERMIT AFTER REVOCATION. If the department
revokes any permit issued under this chapter, the applicant or permit holder may not
reapply for the permit for a period of 6 months after the date of the revocation.
SECTION 27. 134.65 (title) of the statutes is amended to read:
134.65 (title) Cigarette, electronic vaping devices, and tobacco
products retailer license.
SECTION 28. 134.65 (1) of the statutes is renumbered 134.65 (1d) and amended
to read:
134.65 (1d) No person shall in any manner, or upon any pretense, or by any
device, directly or indirectly sell, expose for sale, possess with intent to sell,
exchange, barter, dispose of or give away any cigarettes, electronic vaping devices,
or tobacco products to any person not holding a license as herein provided or a permit
under ss. 139.30 to 139.41 or 139.79 without first obtaining a license from the clerk
of the city, village or town wherein such privilege is sought to be exercised.
SECTION 29. 134.65 (1a) of the statutes is created to read:
134.65 (1a) In this section:
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(a) “Cigarette” has the meaning given in s. 139.30 (1m).
(b) “Electronic vaping device” means a device that may be used to deliver any
aerosolized or vaporized liquid or other substance for inhalation, regardless of
whether the liquid or other substance contains nicotine, including an e-cigarette,
e-cigar, e-pipe, vape pen, or e-hookah. “Electronic vaping device” includes a
component, part, or accessory of the device, and includes a liquid or other substance
that may be aerosolized or vaporized by such device, regardless of whether the liquid
or other substance contains nicotine. “Electronic vaping device” does not include a
battery or battery charger when sold separately. “Electronic vaping device” does not
include drugs, devices, or combination products authorized for sale by the U.S. food
and drug administration, as those terms are defined in the Federal Food, Drug, and
Cosmetic Act.
(c) “Tobacco products” has the meaning given in s. 139.75 (12).
(d) “Vending machine” has the meaning given in s. 139.30 (14).
SECTION 30. 134.65 (1g) of the statutes is created to read:
134.65 (1g) (a) The department of revenue shall create an application form for
licenses issued under sub. (1d). The form shall require all of the following
information from an applicant:
1. The applicant's history relevant to the applicant's fitness to hold a license
under sub. (1d).
2. The kind of license for which the applicant is applying.
3. The premises where cigarettes, electronic vaping devices, or tobacco
products will be sold or stored.
4. If the applicant is a corporation, the identity of the corporate officers and
agent.
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5. If the applicant is a limited liability company, the identity of the company
members or managers and agent.
6. The applicant's trade name, if any.
7. Whether the applicant will sell, exchange, barter, dispose of, or give away
the cigarettes, electronic vaping devices, or tobacco products over the counter or in
a vending machine, or both.
8. Any other information required by the department of revenue.
(b) The department of revenue shall make the form prepared under this
subsection available to all cities, villages, and towns.
(c) An applicant for a license under sub. (1d) shall use the form prepared under
this subsection.
(d) An application for a license under sub. (1d) shall be signed by the applicant
and the applicant shall submit the application to the clerk of the city, village, or town
where the intended place of sale is located.
(e) Within 30 days of any change in any fact set forth in an application for a
license under sub. (1d), the applicant or licensee shall file a written description of the
change with the clerk of the city, village, or town where the application was
submitted.
(f) Any person may inspect applications for a license under sub. (1d). The clerk
of a city, village, or town where such applications are submitted shall retain all
applications, except that the clerk may destroy any application that is 4 or more
years old.
SECTION 31. 134.65 (1m) of the statutes is renumbered 134.65 (1m) (a) (intro.)
and amended to read:
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134.65 (1m) (a) (intro.) A city, village, or town clerk may not issue a license
under sub. (1) (1d) unless the applicant specifies in the license application whether
the applicant will sell, exchange, barter, dispose of, or give away the cigarette or
tobacco products over the counter or in a vending machine, or both. meets all of the
following requirements:
SECTION 32. 134.65 (1m) (a) 1. and 2. of the statutes are created to read:
134.65 (1m) (a) 1. Subject to ss. 111.321, 111.322, and 111.335, the applicant
has not habitually been a law offender or been convicted of a felony unless pardoned.
2. The applicant has submitted the proof required under s. 77.61 (11).
SECTION 33. 134.65 (1m) (b) of the statutes is created to read:
134.65 (1m) (b) The requirements under par. (a) apply to all partners of a
partnership, all members of a limited liability company, all agents of a limited
liability company or corporation, and all officers of a corporation. Subject to ss.
111.321, 111.322, and 111.335, if a business entity has been convicted of a crime, the
entity may not be issued a license under sub. (1d) unless the entity has terminated
its relationship with the individuals whose actions directly contributed to the
conviction.
SECTION 34. 134.65 (1r) of the statutes is amended to read:
134.65 (1r) A city, village, or town clerk may not require an applicant's
signature on an application for a cigarette, electronic vaping devices, and tobacco
products retailer license to be notarized. If a city, village, town, or any department
of this state prepares an application form for a cigarette, electronic vaping devices,
and tobacco products retailer license, the form may not require an applicant's
signature on the form to be notarized.
SECTION 35. 134.65 (2m) of the statutes is created to read:
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134.65 (2m) Annually, no later than July 15, the clerk of a city, village, or town
issuing licenses under sub. (1d) shall submit to the department of revenue, in a
manner prescribed by the department, a list of licenses issued by the city, village, or
town under sub. (1d) during the previous fiscal year. The list shall include the name,
address, seller's permit number, and trade name of the licensee and the type of
license held. The department of revenue shall publish this list annually on the
department's website.
SECTION 36. 134.65 (3m) of the statutes is created to read:
134.65 (3m) A person holding a license under sub. (1d) shall enclose the license
in a frame that has a transparent front that allows the license to be read clearly. The
licensee shall conspicuously display the license for public inspection at all times in
the room or place where the activity subject to licensure is carried out.
SECTION 37. 134.65 (4) of the statutes is amended to read:
134.65 (4) Every licensed retailer shall keep complete and accurate records of
all purchases and receipts of cigarettes, electronic vaping devices, and tobacco
products. Such records shall be preserved on the licensed premises for 2 years in such
a manner as to insure permanency and accessibility for inspection and shall be
subject to inspection at all reasonable hours by authorized state and local law
enforcement officials.
SECTION 38. 134.65 (5m) of the statutes is amended to read:
134.65 (5m) Any person who knowingly provides materially false information
in an application for a cigarette, electronic vaping devices, and tobacco products
retailer license under this section may be required to forfeit not more than $1,000.
SECTION 39. 134.65 (8) of the statutes is amended to read:
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134.65 (8) The uniform licensing of cigarette, electronic vaping devices, and
tobacco products retailers is a matter of statewide concern. A city, village, or town
may adopt an ordinance regulating the issuance, suspension, revocation, or renewal
of a license under this section only if the ordinance strictly conforms to this section.
If a city, village, or town has in effect on May 1, 2016, an ordinance that does not
strictly conform to this section, the ordinance does not apply and may not be enforced.
SECTION 40. 134.66 (1) (g) of the statutes is amended to read:
134.66 (1) (g) “Retailer" means any person licensed under s. 134.65 (1) (1d).
SECTION 41. 139.11 (4) (a) (intro.) of the statutes is amended to read:
139.11 (4) (a) (intro.) Sections 71.78 (1), (1g), (1m), and (4) to (9) and 71.83 (2)
(a) 3. and 3m., relating to confidentiality of income and franchise tax returns, apply
to any information obtained from any person on a fermented malt beverage tax
return, report, schedule, exhibit, or other document or from an audit report relating
to any of those documents, except that the department of revenue shall publish the
following:
SECTION 42. 139.38 (6) of the statutes is amended to read:
139.38 (6) Sections 71.78 (1), (1g), (1m), and (4) to (9) and 71.83 (2) (a) 3. and
3m., relating to confidentiality of income and franchise tax returns, apply to any
information obtained from any person on a cigarette tax return, report, schedule,
exhibit, or other document or from an audit report pertaining to the return, report,
schedule, exhibit, or document, except that the department shall publish on its
Internet site website, at least quarterly, a current list of permits issued to
distributors and jobbers under s. 139.34 and include on the list the name and address
of the permit holder and the date on which the department issued the permit.
SECTION 43. 139.44 (2) of the statutes is amended to read:
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139.44 (2) Any person who makes or signs any false or fraudulent report or who
attempts to evade the tax imposed by s. 139.31 or 139.76, or who aids in or abets the
evasion or attempted evasion of that tax may be fined not more than $10,000 or
imprisoned for not more than 9 months or both.
SECTION 44. 139.44 (2m) of the statutes is created to read:
139.44 (2m) Any person who evades or attempts to evade, or who aids or abets
the evasion or attempted evasion of, a tax imposed under s. 139.31 or 139.76 is guilty
of the following:
(a) A Class A misdemeanor if the amount of the tax is no more than $2,500.
(b) A Class I felony if the amount of the tax is more than $2,500, but no more
than $5,000.
(c) A Class H felony if the amount of the tax is more than $5,000, but no more
than $10,000.
(d) A Class G felony if the amount of the tax is more than $10,000, but no more
than $100,000.
(e) A Class F felony if the amount of the tax is more than $100,000.
SECTION 45. 139.44 (8) (a) of the statutes is amended to read:
139.44 (8) (a) If the number of cigarettes does not exceed 6,000, a fine of 200,
the person may be fined not more than $200 or imprisonment imprisoned for not
more than 6 months or both.
SECTION 46. 139.44 (8) (am) of the statutes is created to read:
139.44 (8) (am) If the number of cigarettes exceeds 200 but does not exceed
3,000, the person may be fined not more than $1,000 or imprisoned for not more than
one year or both.
SECTION 47. 139.44 (8) (b) and (c) of the statutes are amended to read:
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139.44 (8) (b) If the number of cigarettes exceeds 6,000 3,000 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 5,000, the person is guilty of a Class I felony.
(c) If the number of cigarettes exceeds 36,000 5,000 but does not exceed 10,000,
the person is guilty of a Class I H felony.
SECTION 48. 139.44 (8) (d) of the statutes is created to read:
139.44 (8) (d) If the number of cigarettes exceeds 10,000, the person is guilty
of a Class F felony.
SECTION 49. 139.82 (6) of the statutes is amended to read:
139.82 (6) Sections 71.78 (1), (1g), (1m), and (4) to (9) and 71.83 (2) (a) 3. and
3m., relating to confidentiality of income and franchise tax returns, apply to any
information obtained from any person on a cigarette tax return, report, schedule,
exhibit, or other document or from an audit report pertaining to the return, report,
schedule, exhibit, or document, except that the department shall publish on its
Internet site website, at least quarterly, a current list of permits issued to
distributors and jobbers under s. 139.34 and include on the list the name and address
of the permit holder and the date on which the department issued the permit.
SECTION 50. 230.36 (1m) (b) 2. (intro.) of the statutes is amended to read:
230.36 (1m) (b) 2. (intro.) A conservation warden, conservation patrol boat
captain, conservation patrol boat engineer, member of the state patrol, state motor
vehicle inspector, University of Wisconsin System police officer, security officer, or
security person, other state facilities police officer, special tax agent, excise tax
investigator employed by the department of revenue and authorized to act under s.
73.031, and special criminal investigation agent employed by the department of
justice at all times while:
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SECTION 51. 230.36 (2m) (a) 9. of the statutes is amended to read:
230.36 (2m) (a) 9. A excise tax investigator special agent employed by the
department of revenue who is authorized to act under s. 73.031.
SECTION 52. 565.01 (6c) of the statutes is created to read:
565.01 (6c) “Special agent” means any employee of the department authorized
to act under s. 73.031.
SECTION 53. 565.02 (8) (e) of the statutes is renumbered 565.02 (9) (a).
SECTION 54. 565.02 (8) (f) of the statutes is renumbered 565.02 (9) (b) and
amended to read:
565.02 (9) (b) If the division of criminal investigation in the department of
justice chooses not to investigate a report under par. (e), coordinate Coordinate an
investigation of the suspected gaming-related criminal activity with local law
enforcement officials and district attorneys.
SECTION 55. 565.02 (9) (intro.) of the statutes is created to read:
565.02 (9) (intro.) The department may do all of the following:
SECTION 56. 565.17 (5) (a) of the statutes is amended to read:
565.17 (5) (a) No Except as provided under par. (d), no employee in the lottery
division of the department or the secretary, deputy secretary, or assistant deputy
secretary of revenue and no member of such a person's immediate family, as defined
in s. 19.42 (7), may purchase a lottery ticket or lottery share.
SECTION 57. 565.17 (5) (d) of the statutes is created to read:
565.17 (5) (d) An employee in the lottery division of the department may
purchase a lottery ticket or lottery share if the purchase is on behalf of the lottery
division of the department and is a part of an official lottery investigation. No person
may share or assign a lottery ticket or lottery share purchased under this paragraph
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and no person may claim any prize or winnings from a lottery ticket or lottery share
purchased under this paragraph.
SECTION 58. 565.40 (title) of the statutes is amended to read:
565.40 (title) Department of justice enforcement Enforcement
authority.
SECTION 59. 565.40 (4) of the statutes is created to read:
565.40 (4) POLICE POWERS. The department may enforce violations of this
chapter, and special agents may exercise their arrest authority under s. 73.031 to
enforce violations of this chapter. This subsection does not deprive or relieve other
law enforcement or peace officers of the power and duty to enforce violations of this
chapter.
SECTION 60. 565.50 (2) of the statutes is amended to read:
565.50 (2) Any person who alters or, forges, counterfeits, or illegally obtains a
lottery ticket or share or intentionally utters or transfers an altered or, forged,
counterfeit, or illegally obtained lottery ticket or share is guilty of a Class I felony.
SECTION 61. 565.50 (2m) of the statutes is created to read:
565.50 (2m) Any person who claims a lottery prize from a winning lottery ticket
or share and then transfers the same winning lottery ticket or share to another
person is guilty of a Class I felony.
SECTION 62. 565.50 (3) of the statutes is amended to read:
565.50 (3) Any person who possesses an altered or, forged, counterfeit, or
illegally obtained lottery ticket or share, or a winning lottery ticket or share for which
the prize has been previously claimed, with intent to defraud shall be fined not more
than $10,000 or imprisoned for not more than 9 months or both.
SECTION 63. 565.50 (4) of the statutes is created to read:
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565.50 (4) Any person who transfers a lottery ticket or share to another person,
presents a transferred lottery ticket or share for payment of a lottery prize, or claims
a lottery prize from a transferred ticket or share with intent to avoid withholding
under s. 565.30 (4), (5), (5m), or (5r) shall be fined not more than $10,000 or
imprisoned for not more than 9 months or both.
SECTION 64. 946.82 (4) of the statutes is amended to read:
946.82 (4) “Racketeering activity" means any activity specified in 18 USC 1961
(1) in effect as of April 27, 1982, or the attempt, conspiracy to commit, or commission
of any of the felonies specified in: chs. 945 and 961, subch. V of ch. 551, and ss. 49.49,
134.05, 139.44 (1), (2m), and (8), 180.0129, 181.0129, 185.825, 201.09 (2), 215.12,
221.0625, 221.0636, 221.0637, 221.1004, 553.41 (3) and (4), 553.52 (2), 940.01, 940.19
(4) to (6), 940.20, 940.201, 940.203, 940.21, 940.30, 940.302 (2), 940.305, 940.31,
941.20 (2) and (3), 941.26, 941.28, 941.298, 941.31, 941.32, 942.09, 943.01 (2), (2d),
or (2g), 943.011, 943.012, 943.013, 943.02, 943.03, 943.04, 943.05, 943.06, 943.10,
943.20 (3) (bf) to (e), 943.201, 943.203, 943.23 (1g), (2) and (3), 943.24 (2), 943.27,
943.28, 943.30, 943.32, 943.34 (1) (bf), (bm), and (c), 943.38, 943.39, 943.40, 943.41
(8) (b) and (c), 943.50 (4) (bf), (bm), and (c) and (4m), 943.60, 943.70, 943.76, 943.81,
943.82, 943.83, 943.84, 943.85, 943.86, 943.87, 943.88, 943.89, 943.90, 944.21 (5) (c)
and (e), 944.32, 944.34, 945.03 (1m), 945.04 (1m), 945.05 (1), 945.08, 946.10, 946.11,
946.12, 946.13, 946.31, 946.32 (1), 946.48, 946.49, 946.61, 946.64, 946.65, 946.72,
946.76, 946.79, 947.015, 948.05, 948.051, 948.08, 948.12, and 948.30.
SECTION 65.0Effective dates. This act takes effect on the day after publication,
except as follows:
(1) RETAIL SALE OF ELECTRONIC VAPING DEVICES. The treatment of ss. 134.65
(title), (1), (1g), (1r), (2m), (3m), (4), (5m), and (8), and 134.66 (1) (g), the renumbering
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and amendment of s. 134.65 (1m), and the creation of s. 134.65 (1m) (a) 1. and 2. and
(b) take effect on the 90th day after the day of publication.
(END)
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