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Please see http://docs.legis.wisconsin.gov for the production version.
Publishing a list of retail licenses
The bill requires DOR to publish a list of retail licensees on DOR's Internet site.
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 Internet site.
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 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
to access tax return information upon DOR's receipt of a grand jury subpoena.

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
$10,000 or imprisoned for not more than nine months, or both.

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
days.

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 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.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB285-SSA2,1 1Section 1. 40.02 (48) (am) 19. of the statutes is amended to read:
SB285-SSA2,6,32 40.02 (48) (am) 19. An excise tax investigator A special agent employed by the
3department of revenue who is authorized to act under s. 73.031.
SB285-SSA2,2 4Section 2. 40.02 (48) (c) of the statutes is amended to read:
SB285-SSA2,7,45 40.02 (48) (c) In s. 40.65, “protective occupation participant" means a
6participating employee who is a police officer, fire fighter, an individual determined
7by a participating employer under par. (a) or (bm) to be a protective occupation
8participant, county undersheriff, deputy sheriff, state probation and parole officer,
9county traffic police officer, conservation warden, state forest ranger, field
10conservation employee of the department of natural resources who is subject to call
11for forest fire control or warden duty, member of the state traffic patrol, state motor
12vehicle inspector, University of Wisconsin System full-time police officer, guard or
13any other employee whose principal duties are supervision and discipline of inmates

1at a state penal institution, excise tax investigator special agent employed by the
2department of revenue who is authorized to act under s. 73.031, person employed
3under s. 60.553 (1), 61.66 (1), or 62.13 (2e) (a), or special criminal investigation agent
4employed by the department of justice.
SB285-SSA2,3 5Section 3. 71.78 (1) of the statutes is amended to read:
SB285-SSA2,7,236 71.78 (1) Divulging information. Except as provided in subs. (1g), (4), (4m) and
7(10), no person may divulge or circulate or offer to obtain, divulge, or circulate any
8information derived from an income, franchise, withholding, fiduciary, partnership,
9or limited liability company tax return or tax credit claim, including information
10which may be furnished by the department as provided in this section. This
11subsection does not prohibit publication by any newspaper of information lawfully
12derived from such returns or claims for purposes of argument or prohibit any public
13speaker from referring to such information in any address. This subsection does not
14prohibit the department from publishing statistics classified so as not to disclose the
15identity of particular returns, or claims or reports and the items thereof. This
16subsection does not prohibit employees or agents of the department of revenue from
17offering or submitting any return, including joint returns of a spouse or former
18spouse, separate returns of a spouse, individual returns of a spouse or former spouse,
19and combined individual income tax returns, or from offering or submitting any
20claim, schedule, exhibit, writing, or audit report or a copy of, and any information
21derived from, any of those documents as evidence into the record of any contested
22matter involving the department in proceedings or litigation on state tax matters if,
23in the department's judgment, that evidence has reasonable probative value.
SB285-SSA2,4 24Section 4. 71.78 (1g) of the statutes is created to read:
SB285-SSA2,8,7
171.78 (1g) Permissible disclosure by department employees. An employee of
2the department may, in connection with the employee's official duties, disclose
3information derived from a return or claim specified in sub. (1) to the extent that the
4disclosure is necessary to obtain information for the enforcement of the tax laws of
5this state. The information that may be disclosed under this subsection shall be
6strictly limited to, and used solely for the purposes of, obtaining information
7necessary for an audit, collection, inspection, or investigation by the employee.
SB285-SSA2,5 8Section 5. 71.78 (4) (b) of the statutes is amended to read:
SB285-SSA2,8,159 71.78 (4) (b) The attorney general and department of justice employees. A
10department of justice employee may, in connection with the employee's official
11duties, disclose information obtained from the department under this paragraph to
12a law enforcement investigator participating in a department of justice investigation
13of suspected criminal conduct. The information that may be disclosed under this
14paragraph shall be strictly limited to, and used solely for the purposes of, obtaining
15information necessary for a department of justice investigation.
SB285-SSA2,6 16Section 6. 71.78 (4) (v) of the statutes is created to read:
SB285-SSA2,8,1817 71.78 (4) (v) A federal grand jury or grand jury of this state, upon receipt by
18the department of a grand jury subpoena.
SB285-SSA2,7 19Section 7. 71.78 (5) of the statutes is amended to read:
SB285-SSA2,8,2420 71.78 (5) Agreement with department. Copies of returns and claims specified
21in sub. (1) and related schedules, exhibits, writings or audit reports shall not be
22furnished to the persons listed under sub. (4), except persons under sub. (4) (e), (k),
23(n), (o) and, (q), and (v) or under an agreement between the department of revenue
24and another agency of government.
SB285-SSA2,8
1Section 8. 71.78 (6) of the statutes is amended to read:
SB285-SSA2,9,52 71.78 (6) Restriction on use of information. The use of information obtained
3under sub. (4) or (5) is restricted to the discharge of duties imposed upon the persons
4by law or by the duties of their office or by order of a court as provided under sub. (4)
5(f) or (v).
SB285-SSA2,9 6Section 9. 71.83 (6) of the statutes is created to read:
SB285-SSA2,9,87 71.83 (6) Automated sales suppression devices and phantomware. (a)
8Definitions. In this subsection:
SB285-SSA2,9,119 1. “Automated sales suppression device" means a software program that
10falsifies the electronic records, including transaction data and transaction reports,
11of electronic cash registers and other point-of-sale systems.
SB285-SSA2,9,1512 2. “Electronic cash register" means a device that keeps a register or supporting
13documents by means of an electronic device or computer system designed to record
14transaction data for the purpose of computing, compiling, or processing retail sales
15transaction data or transaction reports.
SB285-SSA2,9,2116 3. “Phantomware" means a programming option embedded in the operating
17system of an electronic cash register, or hardwired into an electronic cash register,
18that can be used to create a virtual second electronic cash register or eliminate or
19manipulate transaction records that may or may not be preserved in digital formats
20to represent the true or manipulated record of transactions in the electronic cash
21register.
SB285-SSA2,9,2522 4. “Transaction data" includes items purchased by a customer, the price for
23each item, a taxability determination for each item, a segregated tax amount for each
24of the taxed items, the amount of cash or credit tendered, the net amount returned
25to the customer in change, the date and time of the purchase, the name, address, and

1identification number of the vendor, and the receipt or invoice number of the
2transaction.
SB285-SSA2,10,63 5. “Transaction report" means a report that includes the sales, taxes collected,
4media totals, and discount voids at an electronic cash register that is printed on cash
5register tape at the end of a day or shift or a report documenting every action at an
6electronic cash register that is stored electronically.
SB285-SSA2,10,107 (b) Automated sales suppression devices and phantomware. Any person who
8creates, designs, manufactures, sells, purchases, leases, installs, updates, repairs,
9services, transfers, uses, or possesses in this state phantomware or an automated
10sales suppression device, unless for a legitimate purpose, is guilty of a Class D felony.
SB285-SSA2,10 11Section 10. 72.06 of the statutes is amended to read:
SB285-SSA2,10,15 1272.06 Sections 71.78 (1), (1g), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m.
13apply to any information obtained from any person by the department on a death tax
14return, report, schedule, exhibit or other document or from an audit report
15pertaining to the tax return.
SB285-SSA2,11 16Section 11. 73.03 (51b) of the statutes is created to read:
SB285-SSA2,10,1817 73.03 (51b) To revoke all permits, licenses, and certificates that the
18department has issued to a person for up to 10 years for violating s. 71.83 (6) (b).
SB285-SSA2,12 19Section 12. 73.031 of the statutes is amended to read:
SB285-SSA2,11,10 2073.031 Arrest powers; authority. A special agent of the department of
21revenue who has been certified as a law enforcement officer by the law enforcement
22standards board and who is on duty may arrest a person if the special agent believes,
23on reasonable grounds, that a warrant for the person's arrest has been issued in this
24state, that a felony warrant has been issued in another state, that the person is
25violating or has violated
under the conditions set forth in s. 968.07. Pursuant to s.

1175.38, special agents may investigate violations of
s. 945.03 (2m) or, 945.04 (2m),
2or that the person is violating or has violated s. 945.05 (1m) in a case in which the
3department determines that the video gambling machine involved is likely to be used
4in connection with a violation of s. 945.03 (2m) or 945.04 (2m) or if a crime has been
5committed in the presence of the special agent. The special agent shall cause the
6person arrested and the documents and reports pertaining to the arrest to be
7delivered to the chief of police or sheriff in the jurisdiction where the arrest is made.
8The special agent shall be available as a witness for the state
. A special agent acting
9under this section is an employee of the department and is subject to its direction,
10benefits and legal protection.
SB285-SSA2,13 11Section 13. 77.61 (5) (am) of the statutes is created to read:
SB285-SSA2,11,1712 77.61 (5) (am) Notwithstanding par. (a), an employee of the department may,
13in connection with the employee's official duties, disclose information derived from
14a return specified in par. (a) to the extent that the disclosure is necessary for the
15enforcement of the tax laws of this state. The disclosure shall be limited to the
16information relevant to a particular matter in connection with an audit, collection,
17inspection, or investigation.
SB285-SSA2,14 18Section 14. 77.61 (5) (b) 2. of the statutes is amended to read:
SB285-SSA2,11,2419 77.61 (5) (b) 2. The attorney general and department of justice employees. A
20department of justice employee may, in connection with the employee's official
21duties, disclose information derived under this subdivision to a law enforcement
22investigator participating in a department of justice investigation. The disclosure
23shall be limited to the information relevant to a particular matter in connection with
24the department of justice investigation.
SB285-SSA2,15 25Section 15. 77.61 (5) (b) 15. of the statutes is created to read:
SB285-SSA2,12,2
177.61 (5) (b) 15. A federal grand jury or grand jury of this state, upon receipt
2by the department of a grand jury subpoena.
SB285-SSA2,16 3Section 16. 77.61 (5) (c) of the statutes is amended to read:
SB285-SSA2,12,74 77.61 (5) (c) Copies of sales tax or use tax returns, schedules, exhibits, writings
5or audit reports shall not be furnished to the persons listed under par. (b), except
6persons under par. (b) 5. or 15. or under an agreement between the department and
7another agency of government.
SB285-SSA2,17 8Section 17. 77.61 (5) (d) of the statutes is amended to read:
SB285-SSA2,12,119 77.61 (5) (d) The use of information obtained under par. (b) or (c) is restricted
10to the discharge of duties imposed upon the persons by law or by the duties of their
11office or by order of a court as specified under par. (b) 6. or 15.
SB285-SSA2,18 12Section 18. 78.80 (3) of the statutes is amended to read:
SB285-SSA2,12,1713 78.80 (3) Sections 71.78 (1), (1g), and (4) to (9) and 71.83 (2) (a) 3., relating to
14confidentiality of income and franchise tax returns, apply to any information
15obtained from any person on a motor vehicle fuel, general aviation fuel or alternate
16fuels tax return, report, schedule, exhibit, or other document or from an audit report
17pertaining to the same.
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