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2021 - 2022 LEGISLATURE
March 9, 2022 - Introduced by Senators Roys, Agard and Carpenter, cosponsored
by Representatives Vining, Pope, Billings, Baldeh, Bowen, Cabrera,
Conley, Considine, Hebl, Milroy, Sinicki, Shelton, Stubbs, Subeck,
Vruwink and Spreitzer. Referred to Committee on Insurance, Licensing and
Forestry.
SB1038,1,10 1An Act to repeal 134.65 (8) and 139.75 (14); to renumber and amend 134.65
2(1); to amend 134.65 (title), 134.65 (1m), 134.65 (1r), 134.65 (4), 134.65 (5m),
3134.65 (6), 134.66 (1) (g), 139.75 (1), 139.75 (2), 139.75 (4) (a), 139.75 (4) (b),
4139.75 (4) (c), 139.75 (5), 139.75 (6), 139.75 (7), 139.75 (8), 139.75 (9), 139.75
5(10), 139.75 (11), 139.75 (13), 139.76, 139.77 (1), 139.78 (1), 139.78 (1m), 139.78
6(2), 139.79 (1), 139.80, 139.801 (1), 139.801 (3) (a), 139.801 (3) (b), 139.801 (3)
7(c), 139.801 (4), 139.802, 139.803 (4), 139.803 (5), 139.805, 139.81 (1), 139.82 (1),
8139.82 (2) and 139.82 (8); and to create 20.566 (1) (am), 134.65 (1a), 134.65
9(2m), 134.65 (9) and 139.75 (4b) of the statutes; relating to: licenses for the
10retail 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:
SB1038,1 1Section 1 . 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
SB1038,2 3Section 2 . 20.566 (1) (am) of the statutes is created to read:
SB1038,3,4
120.566 (1) (am) Administration of electronic smoking devices tax and
2enforcement
. As a continuing appropriation, the amounts in the schedule for the
3purpose of administering and enforcing the taxes imposed for the sale of electronic
4smoking devices.
SB1038,3 5Section 3 . 134.65 (title) of the statutes is amended to read:
SB1038,3,7 6134.65 (title) Cigarette, electronic smoking devices, and tobacco
7products retailer license.
SB1038,4 8Section 4 . 134.65 (1) of the statutes is renumbered 134.65 (1d) and amended
9to read:
SB1038,3,1510 134.65 (1d) No person shall in any manner, or upon any pretense, or by any
11device, directly or indirectly sell, expose for sale, possess with intent to sell,
12exchange, barter, dispose of or give away any cigarettes, electronic smoking devices,
13or tobacco products to any person not holding a license as herein provided or a permit
14under ss. 139.30 to 139.41 or 139.79 without first obtaining a license from the clerk
15of the city, village or town wherein such privilege is sought to be exercised.
SB1038,5 16Section 5 . 134.65 (1a) of the statutes is created to read:
SB1038,3,1717 134.65 (1a) In this section:
SB1038,3,1818 (a) “Cigarette” has the meaning given in s. 139.30 (1m).
SB1038,3,1919 (b) “Electronic smoking device” has the meaning given in s. 139.75 (4b).
SB1038,3,2020 (c) “Tobacco products” has the meaning given in s. 139.75 (12).
SB1038,3,2121 (d) “Vending machine” has the meaning given in s. 139.30 (14).
SB1038,6 22Section 6 . 134.65 (1m) of the statutes is amended to read:
SB1038,4,223 134.65 (1m) A city, village, or town clerk may not issue a license under sub. (1)
24(1d) unless the applicant specifies in the license application whether the applicant

1will sell, exchange, barter, dispose of, or give away the cigarette, electronic smoking
2devices,
or tobacco products over the counter or in a vending machine, or both.
SB1038,7 3Section 7 . 134.65 (1r) of the statutes is amended to read:
SB1038,4,94 134.65 (1r) A city, village, or town clerk may not require an applicant's
5signature on an application for a cigarette, electronic smoking devices, and tobacco
6products retailer license to be notarized. If a city, village, town, or any department
7of this state prepares an application form for a cigarette, electronic smoking devices,
8and tobacco products retailer license, the form may not require an applicant's
9signature on the form to be notarized.
SB1038,8 10Section 8. 134.65 (2m) of the statutes is created to read:
SB1038,4,1711 134.65 (2m) Annually, no later than July 15, the clerk of a city, village, or town
12issuing licensed under sub. (1d) shall submit to the department of revenue, in a
13manner prescribed by the department, a list of licenses issued by the city, village, or
14town under sub. (1d) during the previous fiscal year. The list shall include the name,
15address, seller's permit number, and trade name of the licensee and the type of
16license held. The department of revenue shall publish the list annually on the
17department's Internet site.
SB1038,9 18Section 9 . 134.65 (4) of the statutes is amended to read:
SB1038,4,2419 134.65 (4) Every licensed retailer shall keep complete and accurate records of
20all purchases and receipts of cigarettes, electronic smoking devices, and tobacco
21products. Such records shall be preserved on the licensed premises for 2 years in such
22a manner as to insure permanency and accessibility for inspection and shall be
23subject to inspection at all reasonable hours by authorized state and local law
24enforcement officials.
SB1038,10 25Section 10 . 134.65 (5m) of the statutes is amended to read:
SB1038,5,3
1134.65 (5m) Any person who knowingly provides materially false information
2in an application for a cigarette, electronic smoking devices, and tobacco products
3retailer license under this section may be required to forfeit not more than $1,000.
SB1038,11 4Section 11. 134.65 (6) of the statutes is amended to read:
SB1038,5,85 134.65 (6) Any 1st class city may revoke, suspend, or refuse to renew any
6license issued under this section, as provided in sub. (7) or a 1st class city may enact
7an ordinance establishing procedures for revoking, suspending, or refusing to renew
8any license issued under this section
.
SB1038,12 9Section 12. 134.65 (8) of the statutes is repealed.
SB1038,13 10Section 13. 134.65 (9) of the statutes is created to read:
SB1038,5,1411 134.65 (9) A city, village, or town may enact and enforce an ordinance
12regulating persons holding a cigarette, electronic smoking devices, and tobacco
13products retailer license under this section if the ordinance is at least as stringent
14as this section.
SB1038,14 15Section 14. 134.66 (1) (g) of the statutes is amended to read:
SB1038,5,1616 134.66 (1) (g) “Retailer" means any person licensed under s. 134.65 (1) (1d).
SB1038,15 17Section 15. 139.75 (1) of the statutes is amended to read:
SB1038,5,2018 139.75 (1) “Business" means any trade, occupation, activity or enterprise
19engaged in for the purpose of selling or distributing tobacco products or vapor
20products
electronic smoking devices in this state.
SB1038,16 21Section 16. 139.75 (2) of the statutes is amended to read:
SB1038,5,2422 139.75 (2) “Consumer" means any person who has title to or possession of
23tobacco products or vapor products electronic smoking devices in storage for use or
24other consumption in this state.
SB1038,17 25Section 17. 139.75 (4) (a) of the statutes is amended to read:
SB1038,6,4
1139.75 (4) (a) Any person engaged in the business of selling tobacco products
2or vapor products electronic smoking devices in this state who brings, or causes to
3be brought, into this state from outside the state any tobacco products or vapor
4products
electronic smoking devices for sale;
SB1038,18 5Section 18. 139.75 (4) (b) of the statutes is amended to read:
SB1038,6,86 139.75 (4) (b) Any person who makes, manufactures or fabricates tobacco
7products or vapor products electronic smoking devices in this state for sale in this
8state; or
SB1038,19 9Section 19. 139.75 (4) (c) of the statutes is amended to read:
SB1038,6,1310 139.75 (4) (c) Any person engaged in the business of selling tobacco products
11or vapor products electronic smoking devices outside this state who ships or
12transports tobacco products or electronic smoking devices to retailers in this state to
13be sold by those retailers.
SB1038,20 14Section 20. 139.75 (4b) of the statutes is created to read:
SB1038,6,2515 139.75 (4b) “Electronic smoking device” means a device that may be used to
16deliver any aerosolized or vaporized liquid or other substance for inhalation,
17regardless of whether the liquid or other substance contains nicotine, including an
18e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. “Electronic smoking device”
19includes a component, part, or accessory of the device, and includes a liquid or other
20substance that may be aerosolized or vaporized by such device, regardless of whether
21the liquid or other substance contains nicotine. “Electronic smoking device” does not
22include a battery or battery charger when sold separately. “Electronic smoking
23device” does not include drugs, devices, or combination products authorized for sale
24by the U.S. food and drug administration, as those terms are defined in the Federal
25Food, Drug, and Cosmetic Act.
SB1038,21
1Section 21. 139.75 (5) of the statutes is amended to read:
SB1038,7,32 139.75 (5) “Manufacturer" means any person who manufactures and sells
3tobacco products or vapor products electronic smoking devices.
SB1038,22 4Section 22. 139.75 (6) of the statutes is amended to read:
SB1038,7,85 139.75 (6) “Place of business" means any place where tobacco products or vapor
6products
electronic smoking devices are sold, manufactured, stored, or kept for the
7purpose of sale or consumption, including any vessel, vehicle, airplane, train, or
8vending machine.
SB1038,23 9Section 23. 139.75 (7) of the statutes is amended to read:
SB1038,7,1110 139.75 (7) “Retail outlet" means each place of business from which tobacco
11products or vapor products electronic smoking devices are sold to consumers.
SB1038,24 12Section 24. 139.75 (8) of the statutes is amended to read:
SB1038,7,1513 139.75 (8) “Retailer" means any person engaged in the business of selling
14tobacco products or vapor products electronic smoking devices to ultimate
15consumers.
SB1038,25 16Section 25. 139.75 (9) of the statutes is amended to read:
SB1038,7,2117 139.75 (9) “Sale" means any transfer, exchange , or barter for a consideration.
18It includes a gift by a person engaged in the business of selling tobacco products or
19vapor products electronic smoking devices for advertising or as a means of evading
20this subchapter or for any other purpose, and it includes solicitation of orders for, and
21the sale for, future delivery.
SB1038,26 22Section 26. 139.75 (10) of the statutes is amended to read:
SB1038,7,2423 139.75 (10) “Storage" means any keeping or retention of tobacco products or
24vapor products electronic smoking devices for use or consumption in this state.
SB1038,27 25Section 27. 139.75 (11) of the statutes is amended to read:
SB1038,8,3
1139.75 (11) “Subjobber" means any person, other than a manufacturer or
2distributor, who buys tobacco products or vapor products electronic smoking devices
3from a distributor and sells them to persons other than the ultimate consumers.
SB1038,28 4Section 28. 139.75 (13) of the statutes is amended to read:
SB1038,8,65 139.75 (13) “Use" means the exercise of any right or power incidental to the
6ownership of tobacco products or vapor products electronic smoking devices.
SB1038,29 7Section 29. 139.75 (14) of the statutes is repealed.
SB1038,30 8Section 30. 139.76 of the statutes is amended to read:
SB1038,9,4 9139.76 Imposition; exceptions. (1) An excise tax is imposed upon the sale,
10offering or exposing for sale, possession with intent to sell or removal for
11consumption or sale or other disposition for any purpose of tobacco products by any
12person engaged as a distributor of them at the rate, for tobacco products, not
13including moist snuff and vapor products electronic smoking devices, of 71 percent
14of the manufacturer's established list price to distributors without diminution by
15volume or other discounts on domestic products and, for moist snuff, at the rate of
16100 percent of the manufacturer's established list price to distributors without
17diminution by volume or other discounts on domestic products. The tax imposed
18under this subsection on cigars shall not exceed an amount equal to 50 cents for each
19cigar. On products imported from another country, not including moist snuff and
20vapor products electronic smoking devices, the rate of tax is 71 percent of the amount
21obtained by adding the manufacturer's list price to the federal tax, duties and
22transportation costs to the United States. On moist snuff imported from another
23country, the rate of the tax is 100 percent of the amount obtained by adding the
24manufacturer's list price to the federal tax, duties, and transportation costs to the
25United States. The tax attaches at the time the tobacco products are received by the

1distributor in this state. The tax shall be passed on to the ultimate consumer of the
2tobacco products. All tobacco products received in this state for sale or distribution
3within this state, except tobacco products actually sold as provided in sub. (2), shall
4be subject to such tax.
SB1038,9,15 5(1m) 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 vapor products electronic smoking devices by any person engaged
8as a distributor of them at the rate of 5 cents per milliliter of the liquid or other
9substance based on the volume as listed by the manufacturer and at a proportionate
10rate for any other quantity or fractional part thereof. The tax attaches at the time
11the vapor products electronic smoking devices are received by the distributor in this
12state. The tax shall be passed on to the ultimate consumer of the vapor products
13electronic smoking devices. All vapor products electronic smoking devices received
14in this state for sale or distribution within this state, except those actually sold as
15provided in sub. (2), shall be subject to such tax.
SB1038,9,22 16(2) Tobacco products and vapor products electronic smoking devices sold to or
17by post exchanges of the U.S. armed forces, to or by federally operated veterans
18hospitals in this state, and tobacco products and vapor products electronic smoking
19devices
sold to an interstate carrier of passengers for hire to be resold to bona fide
20passengers actually being transported and tobacco products and vapor products
21electronic smoking devices sold for shipment outside this state in interstate
22commerce are not subject to the tax.
SB1038,31 23Section 31. 139.77 (1) of the statutes is amended to read:
SB1038,9,2524 139.77 (1) On or before the 15th day of each month, every distributor with a
25place of business in this state shall file a return showing the quantity, including

1milliliters in the case of a vapor product an electronic smoking device, and taxable
2price of each tobacco product or vapor product electronic smoking device brought, or
3caused to be brought, into this state for sale; or made, manufactured or fabricated
4in this state for sale in this state, during the preceding month. Every distributor
5outside this state shall file a return showing the quantity, including milliliters in the
6case of a vapor product an electronic smoking device, and taxable price of each
7tobacco product or vapor product electronic smoking device shipped or transported
8to retailers in this state to be sold by those retailers during the preceding month. At
9the time that the return is filed, the distributor shall pay the tax.
SB1038,32 10Section 32. 139.78 (1) of the statutes is amended to read:
SB1038,10,1911 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco
12products in this state at the rate, for tobacco products, not including moist snuff and
13vapor products electronic smoking devices, of 71 percent of the cost of the tobacco
14products and, for moist snuff, at the rate of 100 percent of the manufacturer's
15established list price to distributors without diminution by volume or other discounts
16on domestic products. The tax imposed under this subsection on cigars shall not
17exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax
18imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco
19products are exempt from the tobacco products tax under s. 139.76 (2).
SB1038,33 20Section 33. 139.78 (1m) of the statutes is amended to read:
SB1038,11,321 139.78 (1m) A tax is imposed upon the use or storage by consumers of vapor
22products
electronic smoking devices in this state at the rate of 5 cents per milliliter
23of the liquid or other substance based on the volume as listed by the manufacturer
24and at a proportionate rate for any other quantity or fractional part thereof. The tax
25does not apply if the tax imposed by s. 139.76 (1m) on the vapor products electronic

1smoking devices
has been paid or if the vapor products electronic smoking devices
2are exempt from the vapor products electronic smoking devices tax under s. 139.76
3(2).
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