AB1125: Bill Text

LRB-5583/1

KP:klm

2021 - 2022 LEGISLATURE

2021 Assembly BILL 1125

March 10, 2022 - Introduced by Representatives Vining, Billings, Pope, Baldeh, Bowen, Cabrera, Conley, Considine, Hebl, Milroy, Sinicki, Shelton, Stubbs, Subeck, Vruwink, Hesselbein and Spreitzer, cosponsored by Senators Roys, Agard, Carpenter and L. Taylor. Referred to Committee on Rules.

AB1125,1,10 An Act to repeal 134.65 (8) and 139.75 (14); to renumber and amend 134.65 (1); to amend 134.65 (title), 134.65 (1m), 134.65 (1r), 134.65 (4), 134.65 (5m), 134.65 (6), 134.66 (1) (g), 139.75 (1), 139.75 (2), 139.75 (4) (a), 139.75 (4) (b), 139.75 (4) (c), 139.75 (5), 139.75 (6), 139.75 (7), 139.75 (8), 139.75 (9), 139.75 (10), 139.75 (11), 139.75 (13), 139.76, 139.77 (1), 139.78 (1), 139.78 (1m), 139.78 (2), 139.79 (1), 139.80, 139.801 (1), 139.801 (3) (a), 139.801 (3) (b), 139.801 (3) (c), 139.801 (4), 139.802, 139.803 (4), 139.803 (5), 139.805, 139.81 (1), 139.82 (1), 139.82 (2) and 139.82 (8); and to create 20.566 (1) (am), 134.65 (1a), 134.65 (2m), 134.65 (9) and 139.75 (4b) of the statutes; relating to: licenses for the retail sale of electronic smoking devices and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill requires a person who sells electronic smoking devices to obtain a cigarette and tobacco products retailer license. The bill defines an “electronic smoking device” as any device that can be used to deliver an aerosolized or vaporized liquid or other substance for inhalation, regardless of whether the liquid or other substance contains nicotine, including parts, accessories, liquids, substances, e-cigarettes, e-cigars, e-pipes, vape pens, and e-hookahs.

Specifically, the bill requires a retailer who sells or offers for sale electronic smoking devices to obtain an annual license from the clerk of the city, village, or town where the retailer is located. Under the bill, municipalities that issue retail licenses to sell cigarettes, tobacco products, and electronic smoking devices must submit a list annually to the Department of Revenue with a list of those licenses and certain information relating to the licenses and licensees, which DOR must post on its Internet site.

The bill also authorizes cities, villages, and towns to enact an ordinance regulating cigarette, tobacco product, and electronic smoking device retailers if the ordinance is at least as stringent as the requirements under state law. Additionally, the bill authorizes two positions in the Department of Health Services to conduct investigations of retail sales of cigarettes, electronic smoking devices, and tobacco products, and two positions in DOR for administering and enforcing the taxes imposed on the sale of electronic smoking devices.

The bill also provides additional funding for 1) local investigations of retail sales of cigarettes and tobacco products, 2) special education aid the Department of Public Instruction pays to school districts, independent charter schools, cooperative educational service agencies, and county children with disabilities education boards; 3) the University of Wisconsin System under its general program operations appropriation; and 4) state aid to technical colleges.

For further information see the state and local 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:

AB1125,1 Section 1 . 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB1125,2 Section 2 . 20.566 (1) (am) of the statutes is created to read:

AB1125,3,4 20.566 (1) (am) Administration of electronic smoking devices tax and enforcement. As a continuing appropriation, the amounts in the schedule for the purpose of administering and enforcing the taxes imposed for the sale of electronic smoking devices.

AB1125,3 Section 3 . 134.65 (title) of the statutes is amended to read:

AB1125,3,7 134.65 (title) Cigarette, electronic smoking devices, and tobacco products retailer license.

AB1125,4 Section 4 . 134.65 (1) of the statutes is renumbered 134.65 (1d) and amended to read:

AB1125,3,15 134.65 (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 smoking 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.

AB1125,5 Section 5 . 134.65 (1a) of the statutes is created to read:

AB1125,3,17 134.65 (1a) In this section:

AB1125,3,18 (a) “Cigarette” has the meaning given in s. 139.30 (1m).

AB1125,3,19 (b) “Electronic smoking device” has the meaning given in s. 139.75 (4b).

AB1125,3,20 (c) “Tobacco products” has the meaning given in s. 139.75 (12).

AB1125,3,21 (d) “Vending machine” has the meaning given in s. 139.30 (14).

AB1125,6 Section 6 . 134.65 (1m) of the statutes is amended to read:

AB1125,4,2 134.65 (1m) 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, electronic smoking devices, or tobacco products over the counter or in a vending machine, or both.

AB1125,7 Section 7 . 134.65 (1r) of the statutes is amended to read:

AB1125,4,9 134.65 (1r) A city, village, or town clerk may not require an applicant's signature on an application for a cigarette, electronic smoking 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 smoking devices, and tobacco products retailer license, the form may not require an applicant's signature on the form to be notarized.

AB1125,8 Section 8. 134.65 (2m) of the statutes is created to read:

AB1125,4,17 134.65 (2m) Annually, no later than July 15, the clerk of a city, village, or town issuing licensed 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 the list annually on the department's Internet site.

AB1125,9 Section 9 . 134.65 (4) of the statutes is amended to read:

AB1125,4,24 134.65 (4) Every licensed retailer shall keep complete and accurate records of all purchases and receipts of cigarettes, electronic smoking 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.

AB1125,10 Section 10 . 134.65 (5m) of the statutes is amended to read:

AB1125,5,3 134.65 (5m) Any person who knowingly provides materially false information in an application for a cigarette, electronic smoking devices, and tobacco products retailer license under this section may be required to forfeit not more than $1,000.

AB1125,11 Section 11. 134.65 (6) of the statutes is amended to read:

AB1125,5,8 134.65 (6) Any 1st class city may revoke, suspend, or refuse to renew any license issued under this section, as provided in sub. (7) or a 1st class city may enact an ordinance establishing procedures for revoking, suspending, or refusing to renew any license issued under this section.

AB1125,12 Section 12. 134.65 (8) of the statutes is repealed.

AB1125,13 Section 13. 134.65 (9) of the statutes is created to read:

AB1125,5,14 134.65 (9) A city, village, or town may enact and enforce an ordinance regulating persons holding a cigarette, electronic smoking devices, and tobacco products retailer license under this section if the ordinance is at least as stringent as this section.

AB1125,14 Section 14. 134.66 (1) (g) of the statutes is amended to read:

AB1125,5,16 134.66 (1) (g) “Retailer" means any person licensed under s. 134.65 (1) (1d).

AB1125,15 Section 15. 139.75 (1) of the statutes is amended to read:

AB1125,5,20 139.75 (1) “Business" means any trade, occupation, activity or enterprise engaged in for the purpose of selling or distributing tobacco products or vapor products electronic smoking devices in this state.

AB1125,16 Section 16. 139.75 (2) of the statutes is amended to read:

AB1125,5,24 139.75 (2) “Consumer" means any person who has title to or possession of tobacco products or vapor products electronic smoking devices in storage for use or other consumption in this state.

AB1125,17 Section 17. 139.75 (4) (a) of the statutes is amended to read:

AB1125,6,4 139.75 (4) (a) Any person engaged in the business of selling tobacco products or vapor products electronic smoking devices in this state who brings, or causes to be brought, into this state from outside the state any tobacco products or vapor products electronic smoking devices for sale;

AB1125,18 Section 18. 139.75 (4) (b) of the statutes is amended to read:

AB1125,6,8 139.75 (4) (b) Any person who makes, manufactures or fabricates tobacco products or vapor products electronic smoking devices in this state for sale in this state; or

AB1125,19 Section 19. 139.75 (4) (c) of the statutes is amended to read:

AB1125,6,13 139.75 (4) (c) Any person engaged in the business of selling tobacco products or vapor products electronic smoking devices outside this state who ships or transports tobacco products or electronic smoking devices to retailers in this state to be sold by those retailers.

AB1125,20 Section 20. 139.75 (4b) of the statutes is created to read:

AB1125,6,25 139.75 (4b) “Electronic smoking 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 smoking 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 smoking device” does not include a battery or battery charger when sold separately. “Electronic smoking 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.

AB1125,21 Section 21. 139.75 (5) of the statutes is amended to read:

AB1125,7,3 139.75 (5) “Manufacturer" means any person who manufactures and sells tobacco products or vapor products electronic smoking devices.

AB1125,22 Section 22. 139.75 (6) of the statutes is amended to read:

AB1125,7,8 139.75 (6) “Place of business" means any place where tobacco products or vapor products electronic smoking devices are sold, manufactured, stored, or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, train, or vending machine.

AB1125,23 Section 23. 139.75 (7) of the statutes is amended to read:

AB1125,7,11 139.75 (7) “Retail outlet" means each place of business from which tobacco products or vapor products electronic smoking devices are sold to consumers.

AB1125,24 Section 24. 139.75 (8) of the statutes is amended to read:

AB1125,7,15 139.75 (8) “Retailer" means any person engaged in the business of selling tobacco products or vapor products electronic smoking devices to ultimate consumers.

AB1125,25 Section 25. 139.75 (9) of the statutes is amended to read:

AB1125,7,21 139.75 (9) “Sale" means any transfer, exchange , or barter for a consideration. It includes a gift by a person engaged in the business of selling tobacco products or vapor products electronic smoking devices for advertising or as a means of evading this subchapter or for any other purpose, and it includes solicitation of orders for, and the sale for, future delivery.

AB1125,26 Section 26. 139.75 (10) of the statutes is amended to read:

AB1125,7,24 139.75 (10) “Storage" means any keeping or retention of tobacco products or vapor products electronic smoking devices for use or consumption in this state.