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.

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.

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.

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.