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AB68-SSA1,2294 25Section 2294 . 139.345 (3) (a) (intro.) of the statutes is amended to read:
AB68-SSA1,1037,2
1139.345 (3) (a) (intro.) Verifies the consumer's name and address and that the
2consumer is at least 18 21 years of age by any of the following methods:
AB68-SSA1,2295 3Section 2295 . 139.345 (3) (b) 2. of the statutes is amended to read:
AB68-SSA1,1037,64 139.345 (3) (b) 2. That the consumer understands that no person who is under
518 21 years of age may purchase or possess cigarettes or falsely represent his or her
6age for the purpose of receiving cigarettes, as provided under s. 254.92.
AB68-SSA1,2296 7Section 2296 . 139.345 (7) (a) of the statutes is amended to read:
AB68-SSA1,1037,158 139.345 (7) (a) No person may deliver a package of cigarettes sold by direct
9marketing to a consumer in this state unless the person making the delivery receives
10a government issued identification card from the person receiving the package and
11verifies that the person receiving the package is at least 18 21 years of age. If the
12person receiving the package is not the person to whom the package is addressed, the
13person delivering the package shall have the person receiving the package sign a
14statement that affirms that the person to whom the package is addressed is at least
1518 21 years of age.
AB68-SSA1,2297 16Section 2297. 139.44 (4) of the statutes is amended to read:
AB68-SSA1,1037,2017 139.44 (4) Any person who refuses to permit the examination or inspection
18authorized in s. 139.39 (2) or 139.83 (1) may be fined not more than $500 or
19imprisoned not more than 90 days or both. Such refusal shall be cause for immediate
20suspension or revocation of permit by the secretary.
AB68-SSA1,2298 21Section 2298. Subchapter III (title) of chapter 139 [precedes 139.75] of the
22statutes is amended to read:
AB68-SSA1,1037,2323 CHAPTER 139
AB68-SSA1,1038,3
1SUBCHAPTER III
2 TOBACCO PRODUCTS TAX and
3 vapor products taxes
AB68-SSA1,2299 4Section 2299 . 139.75 (1m) of the statutes is created to read:
AB68-SSA1,1038,85 139.75 (1m) “Cigar” means a roll, of any size or shape, of tobacco for smoking
6that is made wholly or in part of tobacco, regardless of whether the tobacco is pure,
7flavored, adulterated, or mixed with an ingredient if the roll has a wrapper made
8wholly or in part of tobacco.
AB68-SSA1,2300 9Section 2300 . 139.75 (4t) of the statutes is created to read:
AB68-SSA1,1038,1110 139.75 (4t) “Little cigar” means a cigar that has an integrated cellulose acetate
11filter and is wrapped in a substance containing tobacco.
AB68-SSA1,2301 12Section 2301 . 139.75 (5b) of the statutes is created to read:
AB68-SSA1,1038,2413 139.75 (5b) “Manufacturer's list price" means the total price of tobacco
14products or vapor products charged by the manufacturer or other seller to an
15unrelated distributor. The total price shall include all charges by the manufacturer
16or other seller that are necessary to complete the sale. The total price may not be
17reduced by any cost or expense, regardless of whether the cost or expense is
18separately stated on an invoice, that is incurred by the manufacturer or other seller,
19including fees, delivery, freight, transportation, packaging, handling, marketing,
20federal excise taxes, and import fees or duties. The total price may not be reduced
21by the value or cost of discounts or free promotional or sample products. For purposes
22of this subsection, a manufacturer or other seller is related to a distributor if the two
23parties have significant common purposes and either substantial common
24membership or, directly or indirectly, substantial common direction or control.
AB68-SSA1,2302 25Section 2302. 139.75 (12) of the statutes is amended to read:
AB68-SSA1,1039,8
1139.75 (12) “Tobacco products" means cigars; little cigars, cheroots; stogies;
2periques; granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco;
3snuff, including moist snuff; snuff flour; cavendish; plug and twist tobacco; fine cut
4and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings
5of tobacco and other kinds and forms of tobacco prepared in such manner as to be
6suitable for chewing or smoking in a pipe or otherwise, or both for chewing and
7smoking; but “tobacco products" does not include cigarettes, as defined under s.
8139.30 (1m).
AB68-SSA1,2303 9Section 2303. 139.75 (14) of the statutes is renumbered 139.75 (14) (a) and
10amended to read:
AB68-SSA1,1039,1711 139.75 (14) (a) “Vapor product” means a noncombustible product that produces
12vapor or aerosol for inhalation from the application of a heating element to a liquid
13or other substance that is depleted as the product is used, regardless of whether the
14liquid or other substance contains nicotine
, which may or may not contain nicotine,
15that employs a heating element, power source, electronic circuit, or other electronic,
16chemical, or mechanical means, regardless of shape or size, that can be used to
17produce vapor from a solution or other substance
.
AB68-SSA1,2304 18Section 2304. 139.75 (14) (b) and (c) of the statutes are created to read:
AB68-SSA1,1039,1919 139.75 (14) (b) “Vapor product” includes all of the following:
AB68-SSA1,1039,2120 1. An electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe,
21or similar product or device.
AB68-SSA1,1039,2522 2. Any cartridge or other container of a solution or other substance, which may
23or may not contain nicotine, that is intended to be used with or in an electronic
24cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or
25device.
AB68-SSA1,1040,3
1(c) “Vapor product” does not include a product regulated as a drug or device
2under sections 501 to 524A of the federal food, drug, and cosmetic act, 21 USC 351
3to 360n-1.
AB68-SSA1,2305 4Section 2305. 139.76 (1) of the statutes is amended to read:
AB68-SSA1,1040,245 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale,
6possession with intent to sell or removal for consumption or sale or other disposition
7for any purpose of tobacco products by any person engaged as a distributor of them
8at the rate, for tobacco products, not including moist snuff and vapor products little
9cigars
, of 71 percent of the manufacturer's established list price to distributors
10without diminution by volume or other discounts on domestic products
and, for moist
11snuff, at the rate of 100 percent of the manufacturer's established list price to
12distributors
without diminution by volume or other discounts on domestic products.
13The tax imposed under this subsection on cigars, except little cigars, shall not exceed
14an amount equal to 50 cents for each cigar. On products imported from another
15country, not including moist snuff and vapor products, the rate of tax is 71 percent
16of the amount obtained by adding the manufacturer's list price to the federal tax,
17duties and transportation costs to the United States. On moist snuff imported from
18another country, the rate of the tax is 100 percent of the amount obtained by adding
19the manufacturer's list price to the federal tax, duties, and transportation costs to
20the United States.
The tax attaches at the time the tobacco products are received by
21the distributor in this state. The tax shall be passed on to the ultimate consumer of
22the tobacco products. All tobacco products received in this state for sale or
23distribution within this state, except tobacco products actually sold as provided in
24sub. (2), shall be subject to such tax.
AB68-SSA1,2306 25Section 2306 . 139.76 (1b) of the statutes is created to read:
AB68-SSA1,1041,7
1139.76 (1b) The tax under sub. (1) is imposed on little cigars at the rate of 126
2mills on each little cigar, regardless of weight. To evidence payment of the tax
3imposed under this section on little cigars, the department shall provide stamps. A
4person who has paid the tax shall affix stamps of the proper denomination to each
5package in which little cigars are packed, prior to the first sale within this state.
6Section 139.32 as it applies to the tax under s. 139.31 applies to the tax imposed
7under this section on little cigars.
AB68-SSA1,2307 8Section 2307. 139.76 (1m) of the statutes is amended to read:
AB68-SSA1,1041,189 139.76 (1m) An excise tax is imposed upon the sale, offering or exposing for
10sale, possession with intent to sell or removal for consumption or sale or other
11disposition for any purpose of vapor products by any person engaged as a distributor
12of them at the rate of 5 cents per milliliter of the liquid or other substance based on
13the volume as listed by the manufacturer and at a proportionate rate for any other
14quantity or fractional part thereof
71 percent of the manufacturer's list price. The
15tax attaches at the time the vapor products are received by the distributor in this
16state. The tax shall be passed on to the ultimate consumer of the vapor products.
17All vapor products received in this state for sale or distribution within this state,
18except those actually sold as provided in sub. (2), shall be subject to such tax.
AB68-SSA1,2308 19Section 2308. 139.77 (1) of the statutes is amended to read:
AB68-SSA1,1042,420 139.77 (1) On or before the 15th day of each month, every distributor with a
21place of business in this state shall file a return showing the quantity , including
22milliliters in the case of a vapor product,
and taxable price of each tobacco product
23or vapor product brought, or caused to be brought, into this state for sale; or made,
24manufactured or fabricated in this state for sale in this state, during the preceding
25month. Every distributor outside this state shall file a return showing the quantity,

1including milliliters in the case of a vapor product,
and taxable price of each tobacco
2product or vapor product shipped or transported to retailers in this state to be sold
3by those retailers during the preceding month. At the time that the return is filed,
4the distributor shall pay the tax.
AB68-SSA1,2309 5Section 2309. 139.78 (1) of the statutes is amended to read:
AB68-SSA1,1042,156 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco
7products in this state at the rate, for tobacco products, not including moist snuff and
8vapor products
little cigars, of 71 percent of the cost of the tobacco products
9manufacturer's list price and, for moist snuff, at the rate of 100 percent of the
10manufacturer's established list price to distributors without diminution by volume
11or other discounts on domestic products
. The tax imposed under this subsection on
12cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar.
13The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has
14been paid or if the tobacco products are exempt from the tobacco products tax under
15s. 139.76 (2).
AB68-SSA1,2310 16Section 2310 . 139.78 (1b) of the statutes is created to read:
AB68-SSA1,1042,2117 139.78 (1b) A tax is imposed and levied upon the use or storage of little cigars
18in this state by any person for any purpose. The tax is levied and shall be collected
19at the same rate as provided for in s. 139.76 (1b). The tax under this subsection does
20not apply if the tax imposed by s. 139.76 (1) has been paid or if the little cigars are
21exempt from tax under s. 139.76 (2).
AB68-SSA1,2311 22Section 2311. 139.78 (1m) of the statutes is amended to read:
AB68-SSA1,1043,423 139.78 (1m) A tax is imposed upon the use or storage by consumers of vapor
24products in this state at the rate of 5 cents per milliliter of the liquid or other
25substance based on the volume as listed by the manufacturer and at a proportionate

1rate for any other quantity or fractional part thereof
71 percent of the manufacturer's
2list price
. The tax does not apply if the tax imposed by s. 139.76 (1m) on the vapor
3products has been paid or if the vapor products are exempt from the vapor products
4tax under s. 139.76 (2).
AB68-SSA1,2312 5Section 2312 . 139.83 of the statutes is renumbered 139.83 (1).
AB68-SSA1,2313 6Section 2313 . 139.83 (2) of the statutes is created to read:
AB68-SSA1,1043,107 139.83 (2) Sections 139.315, 139.32, 139.321, 139.322, 139.34, 139.35, 139.36,
8139.362, 139.363, 139.38, 139.395, 139.41, 139.42, 139.43, and 139.44 (8), as they
9apply to the taxes under subch. II, apply to the administration and enforcement of
10this subchapter for little cigars.
AB68-SSA1,2314 11Section 2314 . Subchapter IV of chapter 139 [precedes 139.97] of the statutes
12is created to read:
AB68-SSA1,1043,1313 chapter 139
AB68-SSA1,1043,1414 subchapter Iv
AB68-SSA1,1043,1515 marijuana tax and regulation
AB68-SSA1,1043,16 16139.97 Definitions. In this subchapter:
AB68-SSA1,1043,17 17(1) “Department" means the department of revenue.
AB68-SSA1,1043,20 18(2) “Lot" means a definite quantity of marijuana or usable marijuana identified
19by a lot number, every portion or package of which is consistent with the factors that
20appear in the labeling.
AB68-SSA1,1043,22 21(3) “Lot number" means a number that specifies the person who holds a valid
22permit under this subchapter and the harvesting or processing date for each lot.
AB68-SSA1,1043,23 23(4) “Marijuana" has the meaning given in s. 961.70 (3).
AB68-SSA1,1044,2 24(5) “Marijuana distributor” means a person in this state who purchases or
25receives usable marijuana from a marijuana processor and who sells or otherwise

1transfers the usable marijuana to a marijuana retailer for the purpose of resale to
2consumers.
AB68-SSA1,1044,6 3(6) “Marijuana processor" means a person in this state who processes
4marijuana into usable marijuana, packages and labels usable marijuana for sale in
5retail outlets, and sells at wholesale or otherwise transfers usable marijuana to
6marijuana distributors.
AB68-SSA1,1044,8 7(7) “Marijuana producer" means a person in this state who produces marijuana
8and sells it at wholesale or otherwise transfers it to marijuana processors.
AB68-SSA1,1044,10 9(8) “Marijuana retailer" means a person in this state that sells usable
10marijuana at a retail outlet.
AB68-SSA1,1044,13 11(9) “Microbusiness” means a marijuana producer that produces marijuana in
12one area that is less than 10,000 square feet and who also operates as any 2 of the
13following:
AB68-SSA1,1044,1414 (a) A marijuana processor.
AB68-SSA1,1044,1515 (b) A marijuana distributor.
AB68-SSA1,1044,1616 (c) A marijuana retailer.
AB68-SSA1,1044,19 17(10) “Permittee" means a marijuana producer, marijuana processor, marijuana
18distributor, marijuana retailer, or microbusiness that is issued a permit under s.
19139.972.
AB68-SSA1,1044,20 20(11) “Retail outlet" means a location for the retail sale of usable marijuana.
AB68-SSA1,1044,21 21(12) “Sales price" has the meaning given in s. 77.51 (15b).
AB68-SSA1,1044,24 22(13) “Usable marijuana" means marijuana that has been processed for human
23consumption and includes dried marijuana flowers, marijuana-infused products,
24and marijuana edibles.
AB68-SSA1,1045,5
1139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana
2producer at the rate of 15 percent of the sales price on each wholesale sale or transfer
3in this state of marijuana to a marijuana processor. This paragraph applies to a
4microbusiness that transfers marijuana to a processing operation within the
5microbusiness.
AB68-SSA1,1045,96 (b) An excise tax is imposed on a marijuana retailer at the rate of 10 percent
7of the sales price on each retail sale in this state of usable marijuana, except that the
8tax does not apply to sales of usable marijuana to an individual who holds a valid tax
9exemption certificate issued under s. 73.17 (4).
AB68-SSA1,1045,13 10(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
11to the department no later than the 15th day of the month following the month in
12which the person's tax liability is incurred and shall include with the payment a
13return on a form prescribed by the department.
AB68-SSA1,1045,18 14(3) For purposes of this section, a marijuana producer may not sell marijuana
15directly to a marijuana distributor or marijuana retailer, and a marijuana retailer
16may purchase usable marijuana for resale only from a marijuana distributor. This
17subsection does not apply to a microbusiness that transfers marijuana or usable
18marijuana to another operation with the microbusiness.
AB68-SSA1,1045,24 19139.972 Permits required. (1) (a) No person may operate in this state as a
20marijuana producer, marijuana processor, marijuana distributor, marijuana
21retailer, or microbusiness without first filing an application for and obtaining the
22proper permit from the department to perform such operations. In addition, no
23person may operate in this state as a marijuana producer or marijuana processor
24without first filing an application for and obtaining the proper permit under s. 94.56.
AB68-SSA1,1046,3
1(b) This section applies to all officers, directors, agents, and stockholders
2holding 5 percent or more of the stock of any corporation applying for a permit under
3this section.
AB68-SSA1,1046,54 (c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may
5not be granted to any person to whom any of the following applies:
AB68-SSA1,1046,76 1. The person has been convicted of a violent misdemeanor, as defined in s.
7941.29 (1g) (b), at least 3 times.
AB68-SSA1,1046,98 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g)
9(a), unless pardoned.
AB68-SSA1,1046,1110 3. During the preceding 3 years, the person has been committed under s. 51.20
11for being drug dependent.
AB68-SSA1,1046,1612 4. The person chronically and habitually uses alcohol beverages or other
13substances to the extent that his or her normal faculties are impaired. A person is
14presumed to chronically and habitually use alcohol beverages or other substances to
15the extent that his or her normal faculties are impaired if, within the preceding 3
16years, any of the following applies:
AB68-SSA1,1046,1817 a. The person has been committed for involuntary treatment under s. 51.45
18(13).
AB68-SSA1,1046,1919 b. The person has been convicted of a violation of s. 941.20 (1) (b).
AB68-SSA1,1047,420 c. In 2 or more cases arising out of separate incidents, a court has found the
21person to have committed a violation of s. 346.63 or a local ordinance in conformity
22with that section; a violation of a law of a federally recognized American Indian tribe
23or band in this state in conformity with s. 346.63; or a violation of the law of another
24jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while
25intoxicated, while under the influence of a controlled substance, a controlled

1substance analog, or a combination thereof, with an excess or specified range of
2alcohol concentration, or while under the influence of any drug to a degree that
3renders the person incapable of safely driving, as those or substantially similar
4terms are used in that jurisdiction's laws.
AB68-SSA1,1047,65 5. The person has income that comes principally from gambling or has been
6convicted of 2 or more gambling offenses.
AB68-SSA1,1047,77 6. The person has been convicted of crimes relating to prostitution.
AB68-SSA1,1047,98 7. The person has been convicted of of crimes relating to loaning money or
9anything of value to persons holding licenses or permits pursuant to ch. 125.
AB68-SSA1,1047,1010 8. The person is under the age of 21.
AB68-SSA1,1047,1211 9. The person has not been a resident of this state continuously for at least 90
12days prior to the application date.
AB68-SSA1,1047,2013 (cm) An applicant with 20 or more employees may not receive a permit under
14this section to operate as a marijuana distributor or marijuana retailer unless the
15applicant certifies to the department that the applicant has entered into a labor
16peace agreement, as defined in s. 94.56 (1) (a), and will abide by the terms of the
17agreement as a condition of maintaining a valid permit under this section. The
18applicant shall submit to the department a copy of the page of the labor peace
19agreement that contains the signatures of the union representative and the
20applicant.
AB68-SSA1,1048,721 (cn) The department shall use a competitive scoring system to determine which
22applicants are eligible to receive a permit under this section. The department shall
23issue permits to the highest scoring applicants that it determines will best protect
24the environment; provide stable, family-supporting jobs to local residents; ensure
25worker and consumer safety; operate secure facilities; and uphold the laws of the

1jurisdictions in which they operate. The department shall, using criteria established
2by rule, score an applicant for a permit to operate as a marijuana retailer on the
3applicant's ability to articulate a social equity plan related to the operation of a
4marijuana retail establishment. The department may deny a permit to an applicant
5with a low score as determined under this paragraph. The department may request
6that the applicant provide any information or documentation that the department
7deems necessary for purposes of making a determination under this paragraph.
AB68-SSA1,1048,158 (d) 1. Before the department issues a new or renewed permit under this section,
9the department shall give notice of the permit application to the governing body of
10the municipality where the permit applicant intends to operate the premises of a
11marijuana producer, marijuana processor, marijuana distributor, marijuana
12retailer, or microbusiness. No later than 30 days after the department submits the
13notice, the governing body of the municipality may file with the department a written
14objection to granting or renewing the permit. At the municipality's request, the
15department may extend the period for filing objections.
AB68-SSA1,1049,416 2. A written objection filed under subd. 1. shall provide all the facts on which
17the objection is based. In determining whether to grant or deny a permit for which
18an objection has been filed under this paragraph, the department shall give
19substantial weight to objections from a municipality based on chronic illegal activity
20associated with the premises for which the applicant seeks a permit or the premises
21of any other operation in this state for which the applicant holds or has held a valid
22permit or license, the conduct of the applicant's patrons inside or outside the
23premises of any other operation in this state for which the applicant holds or has held
24a valid permit or license, and local zoning ordinances. In this subdivision, “ chronic
25illegal activity" means a pervasive pattern of activity that threatens the public

1health, safety, and welfare of the municipality, including any crime or ordinance
2violation, and that is documented in crime statistics, police reports, emergency
3medical response data, calls for service, field data, or similar law enforcement agency
4records.
AB68-SSA1,1049,95 (e) After denying a permit, the department shall immediately notify the
6applicant in writing of the denial and the reasons for the denial. After making a
7decision to grant or deny a permit for which a municipality has filed an objection
8under par. (d), the department shall immediately notify the governing body of the
9municipality in writing of its decision and the reasons for the decision.
AB68-SSA1,1049,1110 (f) 1. The department's denial of a permit under this section is subject to judicial
11review under ch. 227.
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