SB111,2250 Section 2250 . 139.345 (3) (b) 2. of the statutes is amended to read:

SB111,1212,23 139.345 (3) (b) 2. That the consumer understands that no person who is under 18 21 years of age may purchase or possess cigarettes or falsely represent his or her age for the purpose of receiving cigarettes, as provided under s. 254.92.

SB111,2251 Section 2251 . 139.345 (7) (a) of the statutes is amended to read:

SB111,1213,8 139.345 (7) (a) No person may deliver a package of cigarettes sold by direct marketing to a consumer in this state unless the person making the delivery receives a government issued identification card from the person receiving the package and verifies that the person receiving the package is at least 18 21 years of age. If the person receiving the package is not the person to whom the package is addressed, the person delivering the package shall have the person receiving the package sign a statement that affirms that the person to whom the package is addressed is at least 18 21 years of age.

SB111,2252 Section 2252 . 139.44 (4) of the statutes is amended to read:

SB111,1213,13 139.44 (4) Any person who refuses to permit the examination or inspection authorized in s. 139.39 (2) or 139.83 (1) may be fined not more than $500 or imprisoned not more than 90 days or both. Such refusal shall be cause for immediate suspension or revocation of permit by the secretary.

SB111,2253 Section 2253 . Subchapter III (title) of chapter 139 [precedes 139.75] of the statutes is amended to read:

SB111,1213,16 CHAPTER 139

SB111,1213,19 SUBCHAPTER III TOBACCO PRODUCTS TAX and vapor products taxes

SB111,2254 Section 2254 . 139.75 (1m) of the statutes is created to read:

SB111,1213,24 139.75 (1m) “Cigar” means a roll, of any size or shape, of tobacco for smoking that is made wholly or in part of tobacco, regardless of whether the tobacco is pure, flavored, adulterated, or mixed with an ingredient if the roll has a wrapper made wholly or in part of tobacco.

SB111,2255 Section 2255 . 139.75 (4t) of the statutes is created to read:

SB111,1214,2 139.75 (4t) “Little cigar” means a cigar that has an integrated cellulose acetate filter and is wrapped in a substance containing tobacco.

SB111,2256 Section 2256 . 139.75 (5b) of the statutes is created to read:

SB111,1214,15 139.75 (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 either substantial common membership or, directly or indirectly, substantial common direction or control.

SB111,2257 Section 2257 . 139.75 (12) of the statutes is amended to read:

SB111,1214,24 139.75 (12) “Tobacco products" means cigars; little cigars, cheroots; stogies; periques; granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco; 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).

SB111,2258 Section 2258. 139.75 (14) of the statutes is renumbered 139.75 (14) (a) and amended to read:

SB111,1215,9 139.75 (14) (a) “Vapor product” means a noncombustible product that produces vapor or aerosol for inhalation from the application of a heating element to a liquid or other substance that is depleted as the product is used, regardless of whether the liquid or other substance contains nicotine, 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.

SB111,2259 Section 2259 . 139.75 (14) (b) and (c) of the statutes are created to read:

SB111,1215,11 139.75 (14) (b) “Vapor product” includes all of the following:

SB111,1215,13 1. An electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.

SB111,1215,17 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.

SB111,1215,20 (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.

SB111,2260 Section 2260 . 139.76 (1) of the statutes is amended to read:

SB111,1216,16 139.76 (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 vapor products 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 and vapor products, 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.

SB111,2261 Section 2261 . 139.76 (1b) of the statutes is created to read:

SB111,1216,24 139.76 (1b) The tax under sub. (1) is imposed on little cigars at the rate of 126 mills on each little cigar, regardless of weight. To evidence payment of the tax imposed under this section on little cigars, the department shall provide stamps. A person who has paid the tax shall affix stamps of the proper denomination to each package in which little cigars are packed, prior to the first sale within this state. Section 139.32 as it applies to the tax under s. 139.31 applies to the tax imposed under this section on little cigars.

SB111,2262 Section 2262 . 139.76 (1m) of the statutes is amended to read: