April 8, 2021 - Introduced by Representatives Spiros, Drake, Moses, Skowronski,
Baldeh, Emerson, Goyke, Haywood, Macco, Vruwink, McGuire, Wittke and
Conley, cosponsored by Senators Wanggaard and L. Taylor. Referred to
Committee on State Affairs.

AB250,1,10 1An Act to renumber and amend 134.65 (1m); to amend 71.78 (1), 71.78 (4) (b),
271.78 (5), 71.78 (6), 72.06, 77.61 (5) (b) 2., 77.61 (5) (c), 77.61 (5) (d), 78.80 (3),
3125.04 (4), 139.11 (4) (a) (intro.), 139.38 (6), 139.44 (2), 139.44 (8) (a), (b) and (c),
4139.82 (6), 227.52 (1), 565.17 (5) (a), 565.50 (2), 565.50 (3) and 946.82 (4); and
5to create 71.78 (1g), 71.78 (4) (v), 71.83 (6), 73.03 (51b), 77.61 (5) (am), 77.61
6(5) (b) 15., 125.02 (1c), 125.04 (8m), 125.09 (8), 125.09 (9), 125.112, 125.12 (7),
7134.65 (1g), 134.65 (1m) (a) 1., 2. and 3., 134.65 (1m) (b), 134.65 (2m), 134.65
8(3m), 139.44 (2m), 139.44 (8) (d), 227.43 (1) (bt), 227.43 (3) (bt), 227.43 (4) (bt),
9565.17 (5) (d) and 565.50 (4) of the statutes; relating to: Department of
10Revenue enforcement and providing a penalty.

This bill makes the following changes related to the Department of Revenue's
enforcement and administration of the laws under its purview:

The bill creates requirements relating to retail licenses to sell cigarettes or
tobacco products.

Under current law, a person must obtain an annual license from the person's
city, village, or town (municipality) before selling cigarettes or tobacco products.
Under the bill, DOR must create an application form for such licenses. The form
must include the applicant's history relevant to the applicant's fitness to hold a
license; the kind of retailer license for which the applicant is applying; the premises
where cigarettes or tobacco products will be sold or stored; if the applicant is a
corporation, the identity of the corporate officers and agent; if the applicant is a
limited liability company, the identity of the company members or managers and
agent; the applicant's trade name, if any; whether the applicant will sell, exchange,
barter, dispose of, or give away the cigarette or tobacco products over the counter or
in a vending machine, or both; and any other information required by DOR.

The bill requires an applicant for a retail license to sell cigarettes or tobacco
products to use the form created by DOR. An applicant must also sign the application
and notify the municipality of any changes in information to the application within
10 days of the change. In addition, the bill requires the municipality to keep all
submitted applications for at least four years.

Under the bill, a retail license to sell cigarettes or tobacco may be issued only
if the applicant has not been a habitual law offender or been convicted of a felony,
unless pardoned; the applicant has submitted the proof required by DOR under
current law relating to the collection of sales and use tax; and the applicant is at least
18 years old. If the applicant is a business entity that has been convicted of a crime,
the business entity may not receive a retail license unless it has terminated its
relationship with the individuals whose actions directly contributed to the
conviction.

The bill also requires municipalities that issue retail licenses to sell cigarettes
or tobacco to submit a list annually to DOR with a list of those licenses and certain
information relating to the licenses and licensees, which DOR must post on its
Internet site.

Finally, the bill requires a licensee to place the licensee's retail license in a
frame with a transparent front and to conspicuously display the license at all times
in the room or place where the licensed activity takes place.

The bill creates an administrative procedure under which DOR may assess and
collect administrative forfeitures for alcohol beverage violations.

Current law provides as a general penalty for violating the state's alcohol
beverage laws a fine of not more than $1,000 or imprisonment for not more than 90
days, or both, if no specific penalty is provided. However, certain violations are
subject to specific penalties, which depending on the violation may be a forfeiture (a
civil penalty) or may be a fine (a criminal penalty) or imprisonment. Each such
penalty is enforced by means of a court proceeding.

Also under current law, DOR may institute an administrative proceeding to
suspend or revoke an alcohol beverage permit issued by DOR and may institute a
court proceeding to suspend or revoke an alcohol beverage license issued by a
municipality.

The bill authorizes DOR to directly assess against a person specified forfeitures
for specified violations of the alcohol beverage laws. If DOR determines that a
forfeiture should be assessed, DOR must issue a notice of assessment (citation) to the
person that includes the amount of the forfeiture and the alleged violation and
informs the person of the person's right to a hearing. The person issued the citation
may contest the assessment by means of a hearing before the Division of Hearings
and Appeals in the Department of Administration. DOR has authority to settle the
matter after issuing the citation, but only in an amount that is at least the minimum
statutory forfeiture amount for the alleged violation.