AB56: Bill Text

AB56,911,16 139.75 (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 two parties have significant common purposes and substantial common membership or, directly or indirectly, substantial common direction or control.

AB56,1753 Section 1753. 139.75 (12) of the statutes is amended to read:

AB56,911,25 139.75 (12) “Tobacco products" means cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco; vapor products; 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).

AB56,1754 Section 1754. 139.75 (14) of the statutes is created to read:

AB56,912,5 139.75 (14) (a) “Vapor product" means any noncombustible product, 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.

AB56,912,6 (b) “Vapor product” includes all of the following:

AB56,912,8 1. An electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.

AB56,912,12 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.

AB56,912,15 (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.

AB56,1755 Section 1755. 139.76 (1) of the statutes is amended to read:

AB56,913,11 139.76 (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 little cigars, 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, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. On products imported from another country, not including moist snuff, 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.

AB56,1756 Section 1756 . 139.76 (1m) of the statutes is created to read:

AB56,913,14 139.76 (1m) The tax under sub. (1) is imposed on little cigars at the following rates:

AB56,913,16 (a) On little cigars weighing not more than 3 pounds per thousand, 126 mills on each little cigar.

AB56,913,18 (b) On little cigars weighing more than 3 pounds per thousand, 252 mills on each little cigar.

AB56,1757 Section 1757. 139.78 (1) of the statutes is amended to read:

AB56,914,3 139.78 (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 little cigars, of 71 percent of the cost manufacturer's list price of the tobacco 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, 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).

AB56,1758 Section 1758 . 139.78 (1m) of the statutes is created to read:

AB56,914,6 139.78 (1m) The tax under sub. (1) is imposed on little cigars at the following rates:

AB56,914,8 (a) On little cigars weighing not more than 3 pounds per thousand, 126 mills on each little cigar.

AB56,914,10 (b) On little cigars weighing more than 3 pounds per thousand, 252 mills on each little cigar.

AB56,1759 Section 1759 . 139.83 of the statutes is renumbered 139.83 (1).

AB56,1760 Section 1760 . 139.83 (2) of the statutes is created to read:

AB56,914,15 139.83 (2) Sections 139.315, 139.32, 139.321, and 139.44 (8), as they apply to the tax under subch. II, apply to the administration and enforcement of this subchapter for little cigars.

AB56,1761 Section 1761 . Subchapter IV of chapter 139 [precedes 139.97] of the statutes is created to read:

AB56,914,18 chapter 139

AB56,914,19 subchapter Iv

AB56,914,20 Dispensary surcharge

AB56,914,21 139.97 Definitions. In this subchapter:

AB56,914,22 (1) “Department” means the department of revenue.

AB56,914,23 (2) “Dispensary” has the meaning given in s. 94.57 (1) (a).

AB56,915,10 139.971 Imposition. (1) A surcharge is imposed on a dispensary at the rate of 10 percent of the total price of cannabis and tetrahydrocannabinols sold or otherwise dispensed to an unrelated person, including any charge by the dispensary that is necessary to complete the sale. For purposes of this subsection, the total price of cannabis and tetrahydrocannabinols shall not be reduced by costs or expenses incurred by the dispensary, such as fees, delivery, freight, transportation, packaging, handling, marketing, taxes, and import fees or duties, regardless of whether such costs or expenses are separately stated on the invoice. The total price also shall not be reduced by the value or cost of discounts or free promotional or sample products. For purposes of this subsection, a dispensary is considered related to another person if the 2 entities have significant common purposes and substantial common membership or, directly or indirectly, substantial common direction or control.

AB56,915,13 (2) A dispensary shall not separately state the surcharge on an invoice or other similar document given to the purchaser or recipient of the cannabis and tetrahydrocannabinols.

AB56,915,16 (3) No dispensary may sell or otherwise dispense cannabis and tetrahydrocannabinols without first obtaining a business tax registration certificate as prescribed under s. 73.03 (50).

AB56,915,22 139.972 Records, returns. (1) Every dispensary shall keep accurate and complete records, in the manner prescribed by the department, of all transactions involving the sale or disposition of cannabis and tetrahydrocannabinols. A dispensary shall preserve the records on the premises described in its business tax registration certificate in such a manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the department.

AB56,916,2 (2) Every dispensary shall render a true and correct invoice of every sale and disposition of cannabis and tetrahydrocannabinols and shall on or before the 15th day of each calendar month file electronically a verified report of all such sales and dispositions during the preceding calendar month.

AB56,916,5 (3) The department shall prescribe reasonable and uniform methods of keeping records and making reports and shall prescribe and furnish the necessary report forms.

AB56,916,14 (4) If the department finds that the records of any dispensary are not kept in the prescribed form or are in such condition that an unusual amount of time is required to determine from them the amount of surcharge due, the department shall give notice of such fact to that dispensary and require that the records be revised and kept in the prescribed form. If the dispensary fails to comply within 30 days, the dispensary shall pay the expenses reasonably attributable to a proper examination and surcharge determination at the rate of $30 per day for each auditor. The department shall send a bill for expenses, and the dispensary shall pay the amount of the bill within 10 days.

AB56,916,16 (5) If any dispensary fails to file a report when due, the dispensary shall be required to pay a late filing fee of $50.

AB56,916,25 (6) Sections 71.78 (1), (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 dispensary surcharge 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, at least quarterly, a current list of business tax registration certificates issued to dispensaries under s. 73.03 (50) and include on the list the name and address of the certificate holder and the date on which the department issued the certificate.

AB56,917,2 (7) The department may inspect the business records of any dispensary doing business on a reservation or on an Indian tribe's trust land.

AB56,917,4 (8) Each dispensary shall collect and remit the surcharge imposed under this subchapter with the reports required to be filed under this section.

AB56,917,7 139.973 Administration and enforcement. (1) Sections 139.355, 139.365, 139.39, and 139.40, as they apply to the tax under subch. II, apply to the administration and enforcement of this subchapter.

AB56,917,11 (2) If a dispensary fails to pay the surcharge under this subchapter, authorized personnel of the department, with the assistance of any law enforcement officer within his or her jurisdiction, may search the premises of the dispensary to seize any personal property or cash for payment of the unpaid surcharge.

AB56,917,13 139.974 Police powers. The duly authorized employees of the department have all necessary police powers to prevent violations of this subchapter.

AB56,917,15 139.975 Timely filing. The provisions on timely filing under s. 71.80 (18) apply to the surcharge under this subchapter.

AB56,917,17 139.976 Bonds. Section 78.11, as it applies to suppliers of motor vehicle fuel, applies to persons liable for the surcharge under this subchapter.

AB56,917,21 139.977 Interest and penalties. (1) The interest and penalties under s. 139.44 (2) to (7) and (9) to (12) apply to this subchapter. In addition, a person who violates s. 139.972 (8) may be fined not more than $10,000 or imprisoned for not more than 9 months or both.

AB56,918,6 (2) If a person fails to file any return or report required under s. 139.972 by the due date, unless the person shows that that failure was due to reasonable cause and not due to neglect, the department shall add to the amount of surcharge required to be shown on that return 5 percent of the amount of the surcharge if the failure is for not more than one month, and an additional 5 percent of the surcharge for each additional month or fraction of a month during which the failure continues, but not more than 25 percent of the surcharge. For purposes of this subsection, the amount of the surcharge required to be shown on the return shall be reduced by the amount of surcharge that is paid on or before the due date and by the amount of any credit against the surcharge that may be claimed on the return.

AB56,918,12 139.978 Personal liability. Any officer, employee, fiduciary, or agent who is responsible for paying the surcharge, interest, penalties, or other charges under this subchapter incurred by another person, as defined in s. 77.51 (10), is personally liable for the surcharge, interest, penalties, or other charges. Sections 71.88 (1) (a) and (2) (a), 71.89, and 71.90, as they apply to appeals of income or franchise tax assessments, apply to appeals of assessments under this subchapter.

AB56,918,15 139.9785 Prosecutions by attorney general. Upon request by the secretary of revenue, the attorney general may represent this state or assist a district attorney in prosecuting any case arising under this subchapter.

AB56,918,17 139.979 Rule-making authority. (1) The department shall promulgate any rules necessary for the administration of this subchapter.

AB56,919,2 (2) Using the procedure under s. 227.24, the department may promulgate the rules required under sub. (1). Notwithstanding s. 227.24 (1) (c) and (2), emergency rules promulgated under this subsection remain in effect until January 1, 2023, or the date on which permanent rules take effect, whichever is sooner. Notwithstanding s. 227.24 (1) (a) and (3), the department is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.

AB56,1762 Section 1762. 145.20 (5) (am) of the statutes is amended to read:

AB56,919,12 145.20 (5) (am) Each governmental unit responsible for the regulation of private on-site wastewater treatment systems shall adopt and begin the administration of the program established under par. (a) before October 1, 2019 2024. As part of adopting and administering the program, the governmental unit shall conduct and maintain an inventory of all the private on-site wastewater treatment systems located in the governmental unit and shall complete the initial inventory before October 1, 2017. In order to be. The governmental unit is not eligible for grant funding under s. 145.245, a governmental unit must comply with these deadlines until the governmental unit completes the initial inventory.

AB56,1763 Section 1763. 146.44 of the statutes is created to read:

AB56,919,15 146.44 Medical Cannabis Registry Program. (1) Definitions. In this section:

AB56,919,17 (a) “Applicant" means a person who is applying for a registry identification card under sub. (2) (a) or (ac).

AB56,919,19 (ag) “Bona fide practitioner-patient relationship" means a relationship between the practitioner and the patient that includes all of the following:

AB56,919,21 1. An assessment of the patient's medical history and current medical condition by the practitioner, including an in-person physical examination if appropriate.

AB56,919,23 2. A consultation between the practitioner and the patient with respect to the patient's debilitating medical condition or treatment.

AB56,919,25 3. Availability by the practitioner to provide follow-up care and treatment to the patient, including patient examinations.

AB56,920,1 (b) “Debilitating medical condition or treatment" means any of the following:

AB56,920,6 1. Cancer, glaucoma, acquired immunodeficiency syndrome, a positive test for the presence of HIV, antigen or nonantigenic products of HIV, or an antibody to HIV, Crohn's disease, a hepatitis C virus infection, Alzheimer's disease, amytrophic lateral sclerosis, nail-patella syndrome, Ehlers-Danlos Syndrome, post-traumatic stress disorder, or the treatment of these conditions.

AB56,920,7 2. Opioid abatement or reduction or treatment for opioid addiction.

AB56,920,11 3. A chronic or debilitating disease or medical condition or the treatment of such a disease or condition that causes cachexia, severe pain, severe nausea, seizures, including those characteristic of epilepsy, or severe and persistent muscle spasms, including those characteristic of multiple sclerosis.

AB56,920,14 4. Any other medical condition or any other treatment for a medical condition designated as a debilitating medical condition or treatment as determined by the department.

AB56,920,15 (c) “Medication with tetrahydrocannabinols" means any of the following:

AB56,920,18 1. The use of tetrahydrocannabinols in any form by a qualifying patient to alleviate the symptoms or effects of the qualifying patient's debilitating medical condition or treatment.

AB56,920,21 2. The acquisition, possession, cultivation, or transportation of tetrahydrocannabinols in any form by a qualifying patient if done to facilitate his or her use of the tetrahydrocannabinols under subd. 1.

AB56,921,2 3. The acquisition, possession, cultivation, or transportation of tetrahydrocannabinols in any form by a primary caregiver of a qualifying patient, the transfer of tetrahydrocannabinols in any form between a qualifying patient and his or her primary caregivers, or the transfer of tetrahydrocannabinols in any form between persons who are primary caregivers for the same qualifying patient if all of the following apply:

AB56,921,5 a. The acquisition, possession, cultivation, transportation, or transfer of the tetrahydrocannabinols is done to facilitate the qualifying patient's use of tetrahydrocannabinols under subd. 1. or 2.

AB56,921,8 b. It is not practicable for the qualifying patient to acquire, possess, cultivate, or transport the tetrahydrocannabinols independently, or the qualifying patient is under 18 years of age.

AB56,921,10 (cm) “Out-of-state registry identification card" means a document that is valid as provided under sub. (7) (f).

AB56,921,15 (cr) “Practitioner” means a physician, advanced practice nurse, a physician assistant, or other person licensed, registered, certified, or otherwise permitted to distribute, dispense, conduct research with respect to, administer or use in teaching or chemical analysis a controlled substance in the course of professional practice or research in this state.

AB56,921,18 (d) “Primary caregiver" means a person who has agreed to help a qualifying patient in his or her medication with tetrahydrocannabinols and who has a registry identification card.

AB56,921,22 (e) “Qualifying patient" means a person who has been diagnosed in the course of a bona fide practitioner-patient relationship as having or undergoing a debilitating medical condition or treatment but does not include a person under the age of 18 years unless all of the following apply:

AB56,921,25 1. The person's practitioner has explained the potential risks and benefits of medication with tetrahydrocannabinols to the person and to a parent, guardian, or person having legal custody of the person.

AB56,922,2 2. The parent, guardian, or person having legal custody provides the practitioner a written statement consenting to do all of the following:

AB56,922,3 a. Allow medication with tetrahydrocannabinols for the person.

AB56,922,4 b. Serve as a primary caregiver for the person.

AB56,922,5 c. Manage the person's medication with tetrahydrocannabinols.

AB56,922,6 (f) “Registrant" means a person to whom a registry identification card is issued.

AB56,922,8 (g) “Registry identification card" means a document issued by the department under sub. (4) that identifies a person as a qualifying patient or primary caregiver.

AB56,922,10 (h) “Written certification" means a statement written by a person's practitioner if all of the following apply:

AB56,922,14 1. The statement indicates that, in the practitioner's professional opinion, the person has or is undergoing a debilitating medical condition or treatment and the potential benefits of medication with tetrahydrocannabinols would likely outweigh the health risks for the person.