SB 268 — Relating to: Department of Revenue enforcement and providing a penalty. (FE)

The bill requires DOR to publish this list on DOR's website.

Criminal history search fee The bill requires an applicant for an alcohol beverages permit issued by DOR to pay to DOR the criminal history search fee associated with the application.

Under current law, DOR may not issue an alcohol beverages permit to an applicant that has a disqualifying criminal record.

The Department of Justice charges a fee for a criminal history search.

This bill requires the permit applicant to pay this criminal history search fee incurred by DOR.

Tax return information disclosure The bill authorizes employees of DOR and DOJ to disclose tax return information under certain circumstances.

Under the bill, DOR employees may, in connection with their official duties, disclose tax return information to the extent that the disclosure is necessary to obtain information for the enforcement of Wisconsin's tax laws.

The disclosure must be strictly limited to, and used solely for the purposes of, obtaining information necessary for an audit, collection, inspection, or investigation by the DOR employee.

The bill authorizes DOJ employees to disclose, in connection with their official duties, the tax return information, other than copies of 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.

- 2024 Legislature - 4 - LRB-1973/1 JK/AG/JM/KP:cdc SENATE BILL 268 Lottery 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.

Possession of alcohol vapor devices 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.

Penalties for evading excise taxes and unlawful possession of cigarettes 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.

LRB-1973/1 - 2024 Legislature - 5 - JK/AG/JM/KP:cdc SENATE BILL 268 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:

PageA 2,Class lineA 1:misdemeanor if the amount of the tax is no more than $2,500.

after “enforcement" insert “, granting rule-making authority,".

PageA 24,Class lineI 21:felony if the amount of the tax is more than $2,500, but no more than $5,000.

after3. that line insert:

“SECTIONA 64m.Class H felony if the amount of the tax is more than $5,000, but no more than $10,000.

995.154. of the statutes is created to read:

995.15A ElectronicClass vapingG devicefelony directory.if the amount of the tax is more than $10,000, but no more than $100,000.

(1)5. In this section:

(a)A “Department”Class meansF felony if the departmentamount of revenue.tax is more than $100,000.

(b)The “Electronicbill vapingalso device”increases hasthe penalties for the meaningunlawful givenpossession inof s.cigarettes.

134.65Under (1a)current (b).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.

(2)A Noperson laterwho thanunlawfully Julypossesses 1,more 2025,than and6,000 annuallycigarettes thereafter,but everyno manufacturermore ofthan electronic36,000 vapingcigarettes devicesis thatsubject areto solda infine thisof state,not eithermore directlythan by$1,000 the manufacturer or throughimprisonment afor distributor,not wholesaler,more retailer,than orone similaryear intermediary, shall certify to the department, on a form and in thecounty mannerjail, prescribedor byboth. the LRBa0769/1 - 2024 Legislature - 2 - JK:skw&wlj department, that the manufacturer shall comply with this section and that either of the following apply:

(a)A Theperson manufacturerwho hasunlawfully receivedpossesses amore marketingthan authorization36,000 orcigarettes similaris orderguilty forof thea electronicClass vapingI devicefelony. from the U.S.

foodUnder andthe drugbill, administrationthe pursuantpenalties toare 21increased USCas 387j.follows:

(b)1. The electronic vaping device was marketed in the United States as of August 8, 2016, the manufacturer submitted a pre-market tobacco product application for the electronic vaping device to the U.S.

foodA andperson drugwho administrationunlawfully pursuantpossesses tono 21more USCthan 387j200 oncigarettes ormay beforebe Septemberfined 9,not 2020,more andthan the$200 applicationor eitherimprisoned remainsfor undernot reviewmore bythan thesix U.S.months, or both.

food2. and drug administration or a final decision on the application has not otherwise taken effect.

(3)A Atperson thewho timeunlawfully apossesses manufacturermore ofthan electronic200 vapingcigarettes devicesbut submitsno themore formthan under3,000 sub.cigarettes may be fined not more than $1,000 or imprisoned for not more than one year, or both.

(2),3. a manufacturer of electronic vaping devices shall submit, in the manner prescribed by the department, a form that separately lists each of the manufacturer's electronic vaping devices that are available for sale in this state.

TheA manufacturerperson shallwho submitunlawfully withpossesses themore form,than and3,000 incigarettes eachbut yearno thereafter,more athan payment5,000 equalcigarettes tois theguilty number of devicesa listedClass onI thefelony. form, multiplied by $500.

(4)4. The submissions to the department under subs.

(2)A andperson (3)who shallunlawfully includepossesses amore copythan of5,000 thecigarettes marketingbut authorizationno ormore similarthan order10,000 forcigarettes theis electronicguilty vapingof devicea issuedClass byH thefelony. U.S.

food5. and drug administration pursuant to 21 USC 387j, as provided under sub.

(2)A (a),person orwho evidenceunlawfully thatpossesses themore pre-marketthan tobacco10,000 productcigarettes applicationis forguilty theof electronica vapingClass deviceF wasfelony. submitted to the U.S.

foodThe andbill drugalso administration,amends asthe provideddefinition 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 sub.the bill related to evading excise taxes and unlawful possession of cigarettes.

(2)Alcohol (b),beverage andpermit areapplication finalThe decisionbill onprovides that, if DOR revokes an alcohol beverages permit, the applicationpermit hasholder may not otherwisereapply takento effect.DOR for the permit for a period of six months.

LRBa0769/1Notice -of 2024change Legislaturefiled -by 3alcohol -beverage JK:skw&wljlicensee (5)or Apermittee manufacturerUnder thatcurrent islaw, requiredwithin toten submitdays aof certificationany formchange underin thisa sectionfact shallset notifyout thein departmentan withinapplication 30for daysa oflicense anyor materialpermit change to thesell informationalcohol containedbeverages, in the certificationlicensee form,or includingpermittee themust issuancefile orwith denialthe ofissuing amunicipality marketingor authorizationDOR, oras similarapplicable, ordera bywritten description of the U.S.changed fact.

foodThis andbill drugextends administrationthe pursuantdeadline tofor 21this USCfiling 387j,from asten provideddays underto sub.30 days.

(2)- (a),2024 orLegislature - 6 - LRB-1973/1 JK/AG/JM/KP:cdc SENATE BILL 268 Sales suppression devices and phantomware Under the bill, any otherperson orderwho creates, designs, manufactures, sells, purchases, leases, installs, updates, repairs, services, transfers, uses, or actionpossesses byin thethis U.S.state or accesses from this state phantomware or an automated sales suppression device, unless for a legitimate purpose, is guilty of a Class D felony.

foodThe andbill drugalso administrationauthorizes thatDOR affectsto therevoke abilityany ofpermit, thelicense, electronicor vapingcertificate deviceissued toby beDOR introducedfor orup deliveredto into10 interstateyears commerce for commercialviolating distributionthis inprohibition. the United States.

(6)Under Beginning March 1, 2025, the departmentbill, shallan maintain“automated andsales makesuppression publiclydevice” availableis on its website a directorysoftware program that listsfalsifies allthe electronic vapingrecords deviceof manufacturers and electronic vapingcash devicesregisters for which certification forms have been submitted and shallother updatepoint-of-sale thesystems. directory at least monthly to ensure accuracy.

(7)The (a)bill Thedefines department“phantomware” shallas providea manufacturersprogramming noticeoption andembedded in the operating system of an opportunityelectronic cash register, or hardwired into an electronic cash register, that can be used to curecreate deficienciesa invirtual thesecond directoryelectronic maintainedcash underregister sub.or eliminate or manipulate transaction records.

(6)Automated beforesales removingsuppression manufacturersdevices orand electronicphantomware vapingare devicestypically fromused to evade the directory.payment of taxes.

TheFor departmentfurther mayinformation removesee a manufacturer or the manufacturer'sstate devicesfiscal fromestimate, the directory no sooner than 15 business days after the date on which thewill departmentbe sendsprinted theas manufactureran noticeappendix underto this paragraph.bill.

The departmentpeople shallof send the noticestate underof thisWisconsin, paragraphrepresented by email or facsimile to the email address or facsimile number provided by the manufacturer in thesenate manufacturer'sand mostassembly, recentdo certificationenact submittedas underfollows: this section.

(b)S AECTION manufacturer1. that receives notice under par.

(a)40.02 has(48) no(am) more19. than 15 business days to respond to the notice and provide sufficient information, as determined by the department, in order for the manufacturer or the manufacturer's electronic vaping devices to remain in the directory maintained under sub.

of the statutes is amended to read:

40.02 (48) (am) 19.

An excise tax investigatoA special agent employed by the department of revenue who is authorized to act under s.

73.031.

S ECTION 2.

40.02 (48) (c) of the statutes is amended to read:

40.02 (48) (c) In s.

40.65, “protective occupation participant" means a participating employee who is a police officer, fire fighter, an individual determined by a participating employer under par.

(a) or (bm) to be a protective occupation participant, county undersheriff, deputy sheriff, state probation and parole officer, county traffic police officer, conservation warden, state forest ranger, field conservation employee of the department of natural resources who is subject to call for forest fire control or warden duty, member of the state traffic patrol, state motor vehicle inspector, University of Wisconsin System full-time police officer, guard or LRB-1973/1 - 2024 Legislature - 7 - JK/AG/JM/KP:cdc S ECTION 2 SENATE BILL 268 any other employee whose principal duties are supervision and discipline of inmates at a state penal institution, excise tax investigator special agent employed by the department of revenue who is authorized to act under s.

73.031, person employed under s.

60.553 (1), 61.66 (1), or 62.13 (2e) (a), or special criminal investigation agent employed by the department of justice.

SECTION 3.

71.78 (1) of the statutes is amended to read:

71.78 (1) DIVULGING INFORMATION.

Except as provided in subs.

(1g), (4), (4m), (10), and (11), no person may divulge or circulate or offer to obtain, divulge, or circulate any information derived from an income, franchise, withholding, fiduciary, partnership, or limited liability company tax return or tax credit claim, including information which may be furnished by the department as provided in this section.

This subsection does not prohibit publication by any newspaper of information lawfully derived from such returns or claims for purposes of argument or prohibit any public speaker from referring to such information in any address.

This subsection does not prohibit the department from publishing statistics classified so as not to disclose the identity of particular returns, or claims or reports and the items thereof.

This subsection does not prohibit employees or agents of the department of revenue from offering or submitting any return, including joint returns of a spouse or former spouse, separate returns of a spouse, individual returns of a spouse or former spouse, and combined individual income tax returns, or from offering or submitting any claim, schedule, exhibit, writing, or audit report or a copy of, and any information derived from, any of those documents as evidence into the record of any contested matter involving the department in proceedings or litigation on state tax matters if, in the department's judgment, that evidence has reasonable probative value.

- 2024 Legislature - 8 - LRB-1973/1 JK/AG/JM/KP:cdc SENATE BILL 268 SECTION 4 SECTION 4.

71.78 (1g) of the statutes is created to read:

71.78 (1g) PERMISSIBLE DISCLOSURE BY DEPARTMENT EMPLOYEEAn employee of the department may, in connection with the employee's official duties, disclose information derived from a return or claim specified in sub.

(1) to the extent that the disclosure is necessary to obtain information for the enforcement of the tax laws of this state.

The information that may be disclosed under this subsection shall be strictly limited to, and used solely for the purposes of, obtaining information necessary for an audit, collection, inspection, or investigation by the employee.

SECTION 5.

71.78 (4) (b) of the statutes is amended to read:

71.78 (4) (b) The attorney general and department of justice employees.

A department of justice employee may, in connection with the employee's official duties, disclose information, other than copies of information, examined under this paragraph to a law enforcement investigator participating in a department of justice investigation of suspected criminal conduct.

The information that may be disclosed under this paragraph shall be strictly limited to, and used solely for the purposes of, obtaining information necessary for a department of justice investigation.

SECTION 6.

71.78 (4) (v) of the statutes is created to read:

71.78 (4) (v) A federal grand jury or grand jury of this state, upon receipt by the department of a grand jury subpoena.

SECTION 7.

71.78 (5) of the statutes is amended to read:

71.78 (5) GREEMENT WITH DEPARTMENT.

Copies of returns and claims specified in sub.

(1) and related schedules, exhibits, writings or audit reports shall not be furnished to the persons listed under sub.

(4), except persons under sub.

(4) (e), (k), LRB-1973/1 - 2024 Legislature - 9 - JK/AG/JM/KP:cdc SECTION 7 SENATE BILL 268 (n), (o) and(q), and (v) or under an agreement between the department of revenue and another agency of government.

S ECTION 8.

71.78 (6) of the statutes is amended to read:

71.78 (6) RESTRICTION ON USE OF INFORMATIOThe use of information obtained under sub.

(4) or (5) is restricted to the discharge of duties imposed upon the persons by law or by the duties of their office or by order of a court as provided under sub.

(4) (f) or (v).

S ECTION 9.

71.83 (6) of the statutes is created to read:

71.83 (6) A UTOMATED SALES SUPPRESSION DEVICES AND PHANTOMWARE.

(a) Definitions.

In this subsection:

1.

“Automated sales suppression device" means a software program, including programs accessed through the Internet or by any other means, that falsifies the electronic records, including transaction data and transaction reports, of electronic cash registers and other point-of-sale systems.

2.

“Electronic cash register" means a device that keeps a register or supporting documents by means of an electronic device or computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data or transaction reports.

3.

“Phantomware" means a programming option embedded in the operating system of an electronic cash register, or hardwired into an electronic cash register, that can be used to create a virtual second electronic cash register or eliminate or manipulate transaction records that may or may not be preserved in digital formats to represent the true or manipulated record of transactions in the electronic cash register.

- 2024 Legislature - 10 - LRB-1973/1 JK/AG/JM/KP:cdc SENATE BILL 268 SECTION 9 4.

“Transaction data" includes items purchased by a customer, the price for each item, a taxability determination for each item, a segregated tax amount for each of the taxed items, the amount of cash or credit tendered, the net amount returned to the customer in change, the date and time of the purchase, the name, address, and identification number of the vendor, and the receipt or invoice number of the transaction.

5.

“Transaction report" means a report that includes the sales, taxes collected, media totals, and discount voids at an electronic cash register that is printed on cash register tape at the end of a day or shift or a report documenting every action at an electronic cash register that is stored electronically.

(b) Automated sales suppression devices and phantomware.

Any person who creates, designs, manufactures, sells, purchases, leases, installs, updates, repairs, services, transfers, uses, or possesses in this state or accesses from this state phantomware or an automated sales suppression device, unless for a legitimate purpose, is guilty of a Class D felony.

SECTION 10.

72.06 of the statutes is amended to read:

72.06 Sections 71.78 (1), (1(1m), and (4) to (9) and 71.83 (2) (a) 3.

and 3m.

apply to any information obtained from any person by the department on a death tax return, report, schedule, exhibit or other document or from an audit report pertaining to the tax return.

SECTION 11.

73.03 (51b) of the statutes is created to read:

73.03 (51b) To revoke all permits, licenses, and certificates that the department has issued to a person for up to 10 years for violating s.

71.83 (6) (b).

SECTION 12.

73.031 of the statutes is amended to read:

LRB-1973/1 - 2024 Legislature - 11 - JK/AG/JM/KP:cdc S ECTION 12 SENATE BILL 268 73.031 Arrest powers;

authority .

A special agent of the department of revenue who has been certified as a law enforcement officer by the law enforcement standards board and who is on duty may arrest a person if the special agent believes, on reasonable grounds, that a warrant for the person's arrest has been issued in this state, that a felony warrant has been issued in another state, that the person is violating or has violated under the conditions set forth in s.

968.07.

Pursuant to s.

175.38, special agents may investigate violations of s.

945.03 (2m) or, 945.04 (2m), or that the person is violating or has violated s.

945.05 (1m) in a case in which the department determines that the video gambling machine involved is likely to be used in connection with a violation of s.

945.03 (2m) or 945.04 (2m) or if a crime has been committed in the presence of the special agent.

The special agent shall cause the person arrested and the documents and reports pertaining to the arrest to be delivered to the chief of police or sheriff in the jurisdiction where the arrest is made.

The special agent shall be available as a witness for the state.

A special agent acting under this section is an employee of the department and is subject to its direction, benefits and legal protection.

SECTION 13.

77.61 (5) (am) of the statutes is created to read:

77.61 (5) (am) Notwithstanding par.

(a), an employee of the department may, in connection with the employee's official duties, disclose information derived from a return specified in par.

(a) to the extent that the disclosure is necessary for the enforcement of the tax laws of this state.

The disclosure shall be limited to the information relevant to a particular matter in connection with an audit, collection, inspection, or investigation.

SECTION 14.

77.61 (5) (b) 2.

of the statutes is amended to read:

- 2024 Legislature - 12 - LRB-1973/1 JK/AG/JM/KP:cdc SENATE BILL 268 SECTION 14 77.61 (5) (b) 2.

The attorney general and department of justice employees.

A department of justice employee may, in connection with the employee's official duties, disclose information derived under this subdivision to a law enforcement investigator participating in a department of justice investigation.

The disclosure shall be limited to the information relevant to a particular matter in connection with the department of justice investigation.

SECTION 15.

77.61 (5) (b) 15.

of the statutes is created to read:

77.61 (5) (b) 15.

A federal grand jury or grand jury of this state, upon receipt by the department of a grand jury subpoena.

SECTION 16.

77.61 (5) (c) of the statutes is amended to read:

77.61(5) (c) Copies of sales tax or use tax returns, schedules, exhibits, writings or audit reports shall not be furnished to the persons listed under par.

(b), except persons under par.

(b) 5.

or 15.

or under an agreement between the department and another agency of government.

SECTION 17.

77.61 (5) (d) of the statutes is amended to read:

77.61 (5) (d) The use of information obtained under par.

(b) or (c) is restricted to the discharge of duties imposed upon the persons by law or by the duties of their office or by order of a court as specified under par.

(b) 6.

or 15 SECTION 18.

78.80 (3) of the statutes is amended to read:

78.80 (3) Sections 71.78 (1), and (4) to (9) and 71.83 (2) (a) 3., relating to confidentiality of income and franchise tax returns, apply to any information obtained from any person on a motor vehicle fuel, general aviation fuel or alternate fuels tax return, report, schedule, exhibit, or other document or from an audit report pertaining to the same.

SECTION 19.

125.02 (1c) of the statutes is created to read:

LRB-1973/1 - 2024 Legislature - 13 - JK/AG/JM/KP:cdc S ECTION 19 SENATE BILL 268 125.02 (1c) “Alcohol vapor device" means any device that provides for the use of air or oxygen bubbled through an alcohol beverage to produce a vapor or mist that allows the user to inhale this alcoholic vapor through the mouth or nose.

SECTION 20.

125.02 (6) of the statutes is renumbered 125.02 (6) (intro.) and amended to read:

125.02 (6) (intro.) “Fermented malt beverages" means any of the following:

(a) Any beverage made by the alcohol fermentation of an infusion in potable water of barley malt and hops, with or without unmalted grains or decorticated and degerminated grains or sugar containing 0.5 percent or more of alcohol by volume.

SECTION 21.

125.02 (6) (b) of the statutes is created to read:

125.02 (6) (b) Any beverage recognized by the federal department of the treasury as beer under 27 CFR 25.11, except sake or similar products.

SECTION 22.

125.04 (3) (h) of the statutes is amended to read:

125.04(3) (h) Subsequent changes.

Within 10 days of any change in any fact set out in an application for a license or permit to sell alcohol beverages, the licensee or permittee shall file with the issuing authority a written description of the changed fact.

SECTION 23.

125.04 (4) of the statutes is amended to read:

125.04 (4) LIST OF LICENSEEBy July 15 annually, the clerk of a municipality issuing licenses shall mail to the department a list containing the name, address, and trade name of each person holding a license issued by that municipality, other than a manager's or operator's license or a license issued under s.

125.26 (6), the type of license held,d, if the person holding the license is a corporation or limited liability company, the name of the agent appointed under sub.

LRBa0769/1The - 2024 Legislature - 4 - JK:skw&wlj (c) A determination by the department toshall notannually includepublish orthis tolist removeon from the directorydepartment's maintainedwebsite. under sub.

(6)- a2024 manufacturerLegislature or- an14 electronic- vapingLRB-1973/1 deviceJK/AG/JM/KP:cdc shallSENATE beBILL subject268 toSECTION review24 bySECTION the24. filing of a civil action for prospective declaratory or injunctive relief.

(8)125.04 If(8m) anof electronicthe vapingstatutes device is removedcreated fromto theread: directory maintained under sub.

(6),125.04 each(8m) retailer,P distributor,AYMENT andOF wholesalerCRIMINAL thatHISTORY hasFEES.Any suchfees aincurred deviceby in its inventory shall remove the devicedepartment fromunder itss. inventory no later 21 days after the date on which the device is removed from the directory and return the device to the manufacturer for disposal.

After165.82 21(1) days(am) followingfor removalpurposes from the directory, the electronic vaping devices of verifying a manufacturerpermit identifiedapplicant's ineligibility the notice under sub.

(7)(5) (a) are1. subject to seizure, forfeiture, and destruction, and may not be purchased or sold in this state.

The cost of such seizure, forfeiture, and destruction(b) shall be bornepaid by the personapplicant fromto whom the electronicdepartment vapingupon devicesapplication arefor confiscated.the permit.

(9)(a)SECTION Beginning25. March 1, 2025, or on the date that the department first makes the directory maintained under sub.

(6)125.09 available(8) forof public inspection on its website, whichever is later, the departmentstatutes shall impose on each retailer who sells or offers for sale an electronic vaping device in this state that is notcreated included in the directory a forfeiture of $1,000 per day for each electronic vaping device offered for sale in violation of this section until each such device is no longer offered for sale in this state or until each such device is properly listed on the directory pursuant to thisread: section.

(b)125.09 Beginning(8) MarchLCOHOL 1,VAPOR 2025,DEVICES.No person may use or onoffer thefor dateuse, thatpossess, theor departmentsell firstor makesoffer thefor directorysale maintainedin underthis sub.state an alcohol vapor device.

(6)SECTION available26. for public inspection on its website, whichever is later, the department shall impose on each manufacturer of an electronic vaping device that is sold in this state, but not included in the directory a forfeiture of $1,000 per day for each electronic vaping device offered for sale in LRBa0769/1 - 2024 Legislature - 5 - JK:skw&wlj violation of this section until each such device is no longer offered for sale in this state or until each such device is properly listed on the directory pursuant to this section.

(c)125.12 Any(7) retailer,of distributor,the wholesaler,statutes oris manufacturercreated whoto violatesread: this section engages in an unfair and deceptive trade practice in violation of s.

100.20.125.12 (7) REAPPLICATION FOR PERMIT AFTER REVOCATION.If the department revokes any permit issued under this chapter, the applicant or permit holder may not reapply for the permit for a period of 6 months after the date of the revocation.

(10)SECTION Section27. 139.82, as it applies to records and inspections under subch.

III134.65 (title) of ch.the statutes is amended to read:

139,134.65 applies(title)Cigarette, toelectronic recordsvaping devices, and inspectionstobacco underproducts thisretailer section.license.

(11)(a)SECTION Any28. electronic vaping device sold, offered for sale, or possessed for sale, in this state, in violation of this section shall be deemed contraband and such devices shall be subject to seizure in the manner provided under s.

139.40134.65 for(1) of the seizurestatutes ofis cigarettes.renumbered 134.65 (1d) and amended to read:

All134.65 (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 vaping devicesdevices, thator aretobacco seizedproducts asto providedany underperson thisnot paragraphholding shalla belicense destroyedas andherein notprovided resold.or a permit under ss.

(b)139.30 Theto duly139.41 authorizedor employees139.79 without first obtaining a license from the clerk of the departmentcity, havevillage allor necessarytown policewherein powerssuch toprivilege preventis violationssought ofto thisbe section.exercised.

(12)SECTION (a)29. Upon request by the secretary of revenue, the attorney general may represent this state or assist a district attorney in prosecuting any case arising under this section.

(b)134.65 The(1a) stateof shall be entitled to recover the costsstatutes ofis investigation,created expert witness fees, court costs, and reasonable attorney fees for any action brought by the state to enforceread: this section.

(13)134.65 Section(1a) 995.12In (3),this assection: it applies to an agent for service of process under s.

995.12,LRB-1973/1 applies- to2024 anLegislature agent- for15 service- ofJK/AG/JM/KP:cdc processS underECTION this29 section.SENATE BILL 268 (a) “Cigarette” has the meaning given in s.

(14)139.30 The(1m). department may promulgate rules to administer this section.

(15)(b) No“Electronic latervaping thandevice” Julymeans 1,a 2026,device andthat annuallymay thereafter,be theused departmentto shalldeliver provideany aaerosolized reportor tovaporized liquid or other substance for inhalation, regardless of whether the legislature,liquid asor providedother undersubstance s.contains nicotine, including an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah.

13.172“Electronic (2),vaping regardingdevice” includes a component, part, or accessory of the statusdevice, and includes a liquid or other substance that may be aerosolized or vaporized by such device, regardless of whether the directoryliquid maintainedor underother sub.substance contains nicotine.

(6),“Electronic manufacturers and electronic LRBa0769/1 - 2024 Legislature - 6 - JK:skw&wlj vaping devicesdevice” includeddoes innot theinclude directory,a revenuebattery andor expendituresbattery relatedcharger towhen administrationsold ofseparately. this section, and enforcement activities undertaken pursuant to this section.”.

“Electronic vaping 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.

(c) “Tobacco products” has the meaning given in s.

139.75 (12).

(d) “Vending machine” has the meaning given in s.

139.30 (14).

S ECTION 30.

134.65 (1g) of the statutes is created to read:

134.65 (1g) (a) The department of revenue shall create an application form for licenses issued under sub.

(1d).

The form shall require all of the following information from an applicant:

1.

The applicant's history relevant to the applicant's fitness to hold a license under sub.

(1d).

2.

The kind of license for which the applicant is applying.

3.

The premises where cigarettes, electronic vaping devices, or tobacco products will be sold or stored.

4.

If the applicant is a corporation, the identity of the corporate officers and agent.

- 2024 Legislature - 16 - LRB-1973/1 JK/AG/JM/KP:cdc SENATE BILL 268 SECTION 30 5.

If the applicant is a limited liability company, the identity of the company members or managers and agent.

6.

The applicant's trade name, if any.

7.

Whether the applicant will sell, exchange, barter, dispose of, or give away the cigarettes, electronic vaping devices, or tobacco products over the counter or in a vending machine, or both.

8.

Any other information required by the department of revenue.

(b) The department of revenue shall make the form prepared under this subsection available to all cities, villages, and towns.

(c) An applicant for a license under sub.

(1d) shall use the form prepared under this subsection.

(d) An application for a license under sub.

(1d) shall be signed by the applicant and the applicant shall submit the application to the clerk of the city, village, or town where the intended place of sale is located.

(e) Within 30 days of any change in any fact set forth in an application for a license under sub.

(1d), the applicant or licensee shall file a written description of the change with the clerk of the city, village, or town where the application was submitted.

(f) Any person may inspect applications for a license under sub.

(1d).

The clerk of a city, village, or town where such applications are submitted shall retain all applications, except that the clerk may destroy any application that is 4 or more years old.

SECTION 31.

134.65 (1m) of the statutes is renumbered 134.65 (1m) (a) (intro.) and amended to read:

LRB-1973/1 - 2024 Legislature - 17 - JK/AG/JM/KP:cdc S ECTION 31 SENATE BILL 268 134.65 (1m) (a) (intro.) 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 or tobacco products over the counter or in a vending machine, or both.

meets all of the following requirements:

SECTION 32.

134.65 (1m) (a) 1.

and 2.

of the statutes are created to read:

134.65 (1m) (a) 1.

Subject to ss.

111.321, 111.322, and 111.335, the applicant has not habitually been a law offender or been convicted of a felony unless pardoned.

2.

The applicant has submitted the proof required under s.

77.61 (11).

SECTION 33.

134.65 (1m) (b) of the statutes is created to read:

134.65 (1m) (b) The requirements under par.

(a) apply to all partners of a partnership, all members of a limited liability company, all agents of a limited liability company or corporation, and all officers of a corporation.

Subject to ss.

111.321, 111.322, and 111.335, if a business entity has been convicted of a crime, the entity may not be issued a license under sub.

(1d) unless the entity has terminated its relationship with the individuals whose actions directly contributed to the conviction.

SECTION 34.

134.65 (1r) of the statutes is amended to read:

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

SECTION 35.

134.65 (2m) of the statutes is created to read:

- 2024 Legislature - 18 - LRB-1973/1 JK/AG/JM/KP:cdc SENATE BILL 268 SECTION 35 134.65 (2m) Annually, no later than July 15, the clerk of a city, village, or town issuing licenses 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 this list annually on the department's website.

SECTION 36.

134.65 (3m) of the statutes is created to read:

134.65(3m) A person holding a license under sub.

(1d) shall enclose the license in a frame that has a transparent front that allows the license to be read clearly.

The licensee shall conspicuously display the license for public inspection at all times in the room or place where the activity subject to licensure is carried out.

SECTION 37.

134.65 (4) of the statutes is amended to read:

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

SECTION 38.

134.65 (5m) of the statutes is amended to read:

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

SECTION 39.

134.65 (8) of the statutes is amended to read:

LRB-1973/1 - 2024 Legislature - 19 - JK/AG/JM/KP:cdc S ECTION 39 SENATE BILL 268 134.65 (8) The uniform licensing of cigarette, electronic vaping devices, tobacco products retailers is a matter of statewide concern.

A city, village, or town may adopt an ordinance regulating the issuance, suspension, revocation, or renewal of a license under this section only if the ordinance strictly conforms to this section.

If a city, village, or town has in effect on May 1, 2016, an ordinance that does not strictly conform to this section, the ordinance does not apply and may not be enforced.

SECTION 40.

134.66 (1) (g) of the statutes is amended to read:

134.66 (1) (g) “Retailer" means any person licensed under s.

134.65 (1) (1d).

SECTION 41.

139.11 (4) (a) (intro.) of the statutes is amended to read:

139.11 (4) (a) (intro.) Sections 71.78 (1(1m), and (4) to (9) and 71.83 (2) (a) 3.

and 3m., relating to confidentiality of income and franchise tax returns, apply to any information obtained from any person on a fermented malt beverage tax return, report, schedule, exhibit, or other document or from an audit report relating to any of those documents, except that the department of revenue shall publish the following:

SECTION 42.

139.38 (6) of the statutes is amended to read:

139.38 (6) Sections 71.78 (1), (1g), (1m), and (4) to (9) and 71.83 (2) (a) 3.

and 3m., relating to confidentiality of income and franchise tax returns, apply to any information obtained from any person on a cigarette tax return, report, schedule, exhibit, or other document or from an audit report pertaining to the return, report, schedule, exhibit, or document, except that the department shall publish on its Internet sitewebsite, at least quarterly, a current list of permits issued to distributors and jobbers under s.

139.34 and include on the list the name and address of the permit holder and the date on which the department issued the permit.

SECTION 43.

139.44 (2) of the statutes is amended to read:

- 2024 Legislature - 20 - LRB-1973/1 JK/AG/JM/KP:cdc SENATE BILL 268 SECTION 43 139.44(2) Any person who makes or signs any false or fraudulent report or who attempts to evade the tax imposed by s.

139.31 or 139.76, or who aids in or abets the evasion or attempted evasion of that tax may be fined not more than $10,000 or imprisoned for not more than 9 months or both.

SECTION 44.

139.44 (2m) of the statutes is created to read:

139.44 (2m) Any person who evades or attempts to evade, or who aids or abets the evasion or attempted evasion of, a tax imposed under s.

139.31 or 139.76 is guilty of the following:

(a) A Class A misdemeanor if the amount of the tax is no more than $2,500.

(b) A Class I felony if the amount of the tax is more than $2,500, but no more than $5,000.

(c) A Class H felony if the amount of the tax is more than $5,000, but no more than $10,000.

(d) A Class G felony if the amount of the tax is more than $10,000, but no more than $100,000.

(e) A Class F felony if the amount of the tax is more than $100,000.

SECTION 45.

139.44 (8) (a) of the statutes is amended to read:

139.44 (8) (a) If the number of cigarettes does not exceed 6,000, a fine of the person may be fined not more than $200 or imprisonment imprisoned for not more than 6 months or both.

SECTION 46.

139.44 (8) (am) of the statutes is created to read:

139.44 (8) (am) If the number of cigarettes exceeds 200 but does not exceed 3,000, the person may be fined not more than $1,000 or imprisoned for not more than one year or both.

SECTION 47.

139.44 (8) (b) and (c) of the statutes are amended to read:

LRB-1973/1 - 2024 Legislature - 21 - JK/AG/JM/KP:cdc S ECTION 47 SENATE BILL 268 139.44 (8) (b) If the number of cigarettes exceeds 6,00000 but does not exceed 36,000, a fine of not more than $1,000 or imprisonment for not more than one year in the county jail or both 5,000, the person is guilty of a Class I felony.

(c) If the number of cigarettes exceeds 36,000 5,000 but does not exceed 10,000, the person is guilty of a Class Ilony.

SECTION 48.

139.44 (8) (d) of the statutes is created to read:

139.44 (8) (d) If the number of cigarettes exceeds 10,000, the person is guilty of a Class F felony.

SECTION 49.

139.82 (6) of the statutes is amended to read:

139.82 (6) Sections 71.78 (1), (1g), (1m), and (4) to (9) and 71.83 (2) (a) 3.

and 3m., relating to confidentiality of income and franchise tax returns, apply to any information obtained from any person on a cigarette tax return, report, schedule, exhibit, or other document or from an audit report pertaining to the return, report, schedule, exhibit, or document, except that the department shall publish on its Internet sitewebsite, at least quarterly, a current list of permits issued to distributors and jobbers under s.

139.34 and include on the list the name and address of the permit holder and the date on which the department issued the permit.

SECTION 50.

230.36 (1m) (b) 2.

(intro.) of the statutes is amended to read:

230.36 (1m) (b) 2.

(intro.) A conservation warden, conservation patrol boat captain, conservation patrol boat engineer, member of the state patrol, state motor vehicle inspector, University of Wisconsin System police officer, security officer, or security person, other state facilities police officer, special tax agent, excise tax investigator employed by the department of revenue and authorized to act under s.

73.031, and special criminal investigation agent employed by the department of justice at all times while:

- 2024 Legislature - 22 - LRB-1973/1 JK/AG/JM/KP:cdc SENATE BILL 268 SECTION 51 SECTION 51.

230.36 (2m) (a) 9.

of the statutes is amended to read:

230.36 (2m) (a) 9.

A excise tax investigator special agent employed by the department of revenue who is authorized to act under s.

73.031.

SECTION 52.

565.01 (6c) of the statutes is created to read:

565.01 (6c) “Special agent” means any employee of the department authorized to act under s.

73.031.

SECTION 53.

565.02 (8) (e) of the statutes is renumbered 565.02 (9) (a).

SECTION 54.

565.02 (8) (f) of the statutes is renumbered 565.02 (9) (b) and amended to read:

565.02 (9) (b) If the division of criminal investigation in the department of justice chooses not to investigate a report under par.

(e), coordinate Coordinate an investigation of thsuspected gaming-related criminal activity with local law enforcement officials and district attorneys.

SECTION 55.

565.02 (9) (intro.) of the statutes is created to read:

565.02 (9) (intro.) The department may do all of the following:

SECTION 56.

565.17 (5) (a) of the statutes is amended to read:

565.17 (5) (a) No Except as provided under par.

(d), no employee in the lottery division of the department or the secretary, deputy secretary, or assistant deputy secretary of revenue and no member of such a person's immediate family, as defined in s.

19.42 (7), may purchase a lottery ticket or lottery share.

SECTION 57.

565.17 (5) (d) of the statutes is created to read:

565.17 (5) (d) An employee in the lottery division of the department may purchase a lottery ticket or lottery share if the purchase is on behalf of the lottery division of the department and is a part of an official lottery investigation.

No person may share or assign a lottery ticket or lottery share purchased under this paragraph LRB-1973/1 - 2024 Legislature - 23 - JK/AG/JM/KP:cdc S ECTION 57 SENATE BILL 268 and no person may claim any prize or winnings from a lottery ticket or lottery share purchased under this paragraph.

SECTION 58.

565.40 (title) of the statutes is amended to read:

565.40 (title) Department of justice enforcement Enforcement authority.

SECTION 59.

565.40 (4) of the statutes is created to read:

565.40 (4) POLICE POWERS.

The department may enforce violations of this chapter, and special agents may exercise their arrest authority under s.

73.031 to enforce violations of this chapter.

This subsection does not deprive or relieve other law enforcement or peace officers of the power and duty to enforce violations of this chapter.

SECTION 60.

565.50 (2) of the statutes is amended to read:

565.50 (2) Any person who alters or, forges, counterfeits, or illegally obtains a lottery ticket or share or intentionally utters or transfers an altered or, counterfeit, or illegally obtained lottery ticket or share is guilty of a Class I felony.

SECTION 61.

565.50 (2m) of the statutes is created to read:

565.50(2m) 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.

SECTION 62.

565.50 (3) of the statutes is amended to read:

565.50 (3) Any person who possesses an altered or, forged, counterfeit, or illegally obtained lottery ticket or share, or a winning lottery ticket or share for which the prize has been previously claimed, with intent to defraud shall be fined not more than $10,000 or imprisoned for not more than 9 months or both.

SECTION 63.

565.50 (4) of the statutes is created to read:

- 2024 Legislature - 24 - LRB-1973/1 JK/AG/JM/KP:cdc SENATE BILL 268 S ECTION 63 565.50(4) Any person who transfers a lottery ticket or share to another person, presents a transferred lottery ticket or share for payment of a lottery prize, or claims a lottery prize from a transferred ticket or share with intent to avoid withholding under s.

565.30 (4), (5), (5m), or (5r) shall be fined not more than $10,000 or imprisoned for not more than 9 months or both.

S ECTION 64.

946.82 (4) of the statutes is amended to read:

946.82(4) “Racketeering activity" means any activity specified in 18 USC 1961 (1) in effect as of April 27, 1982, or the attempt, conspiracy to commit, or commission of any of the felonies specified in:

chs.

945 and 961, subch.

V of ch.

551, and ss.

49.49, 134.05, 139.44 (1), (2m), and, 180.0129, 181.0129, 185.825, 201.09 (2), 215.12, 221.0625, 221.0636, 221.0637, 221.1004, 553.41 (3) and (4), 553.52 (2), 940.01, 940.19 (4) to (6), 940.20, 940.201, 940.203, 940.21, 940.30, 940.302 (2), 940.305, 940.31, 941.20 (2) and (3), 941.26, 941.28, 941.298, 941.31, 941.32, 942.09, 943.01 (2), (2d), or (2g), 943.011, 943.012, 943.013, 943.02, 943.03, 943.04, 943.05, 943.06, 943.10, 943.20 (3) (bf) to (e), 943.201, 943.203, 943.23 (1g), (2) and (3), 943.24 (2), 943.27, 943.28, 943.30, 943.32, 943.34 (1) (bf), (bm), and (c), 943.38, 943.39, 943.40, 943.41 (8) (b) and (c), 943.50 (4) (bf), (bm), and (c) and (4m), 943.60, 943.70, 943.76, 943.81, 943.82, 943.83, 943.84, 943.85, 943.86, 943.87, 943.88, 943.89, 943.90, 944.21 (5) (c) and (e), 944.32, 944.34, 945.03 (1m), 945.04 (1m), 945.05 (1), 945.08, 946.10, 946.11, 946.12, 946.13, 946.31, 946.32 (1), 946.48, 946.49, 946.61, 946.64, 946.65, 946.72, 946.76, 946.79, 947.015, 948.05, 948.051, 948.08, 948.12, and 948.30.

S ECTION 650Effective dates.

This act takes effect on the day after publication, except as follows:

(1) R ETAIL SALE OF ELECTRONIC VAPING DEVICESThe treatment of ss.

134.65 (title), (1), (1g), (1r), (2m), (3m), (4), (5m), and (8), and 134.66 (1) (g), the renumbering LRB-1973/1 - 2024 Legislature - 25 - JK/AG/JM/KP:cdc S ECTION 65 SENATE BILL 268 and amendment of s.

134.65 (1m), and the creation of s.

134.65 (1m) (a) 1.

and 2.

and (b) take effect on the 90th day after the day of publication.