January 23, 2024

To: Municipal Clerks

The Wisconsin Department of Revenue (DOR), Alcohol and Tobacco Enforcement Unit would like to inform you of imminent changes that impact municipal licensing and regulation of alcohol beverage and cigarette, tobacco, and electronic vaping device retailers due to 2023 Wisconsin Act 73.

2023 Wisconsin Act 73

• Signed into law – December 6, 2023, by Governor Tony Evers
• Makes several changes to Wisconsin's alcohol beverage laws that will impact municipalities

Take the following actions:

1. Do not send any renewal application forms for retail licenses for alcohol beverage or cigarette, tobacco and, electronic vaping device licensing forms until we update these documents
   • Due to these law changes, municipal licensing forms for Alcohol Beverage and Cigarette and Tobacco licenses are out-of-date and must be updated
   • Consequences of accepting old renewal license forms could include improperly issued licenses, reapplication, gaps in service of customers, and temporary closure of business
   • Early February 2024 – timeframe DOR is targeting for publication of the new cigarette, tobacco, and electronic vapor device retail form
   • April 1, 2024 – date DOR is targeting publication of new alcohol beverage retail forms
2. Prepare to review and issue cigarette and tobacco retail licenses to qualified electronic vaping device retailers by March 6, 2024
   • Previously, a retailer selling only electronic vaping devices did not need any retail license for those products. As of March 6, these retailers will need the same retail license cigarette and tobacco product retailers hold now. A current cigarette and tobacco license holder will not need any new license to lawfully sell electronic vaping devices.
   • An electronic vaping device is a device that may be used to deliver any aerosolized or vaporized liquid or other substance for inhalation, regardless of whether the liquid or other substance contains nicotine and includes:
     • e−cigarette
     • e−cigar
     • e−pipe
     • vape pen
     • e−hookah
     • component, part, or accessory of the device
     • liquid or other substance that may be aerosolized or vaporized by such device
     ​

     An electronic vaping device is not:

     • A battery or battery charger when sold separately.
     • 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.
   • The new cigarette, tobacco, electronic vaping device license form will reflect the following new qualifications for all applicants of this license.
     • Applicants must submit proof of a seller's permit, as required by sec. 77.61 (11) Wis. Stats.
     • LLC and corporate applicants must appoint an agent
     • Applicants must not be a habitual law offender or convicted of a felony that substantially relates to the licensed activity (unless pardoned)
       • Partners in a partnership, members of an LLC, officers of a corporation, and the agent for an LLC or corporation are also subject to these criminal history requirements
       • Municipalities should conduct criminal history background checks to verify an applicant's qualification
3. Review and update the report of alcohol beverage retail licenses reported DOR
   • DOR is now required to publish a list of these alcohol beverage retail licenses on our website
     • DOR expects to publish this list in January 2024
   • While this report is only statutorily due by July 15 annually, outdated information could lead to unnecessary inquiries to clerks
   • Watch for future communications requiring similar information for cigarette, tobacco, and electronic vapor device licenses

Next Steps

• DOR is prioritizing updates to all the municipal forms as soon as possible
• We recognize that this will be difficult to administer, especially around a spring election.
• DOR appreciates your patience and flexibility as we implement this significant law change and hope this early communication will prevent confusion and ensure continuity of service for all impacted industry members
• See the Wisconsin Legislative Council amendment memo for SB268 to read a summary of all changes
• To receive email updates regarding 2023 Wisconsin Act 73, subscribe to DOR e-news lists such as alcohol beverage news or cigarette, tobacco, and vapor products

Questions?

Contact us at DORDivisionofAlcoholBeverage@Wisconsin.Gov.