(1)
(a) No person may manufacture cigarettes in this state or sell cigarettes in this state as a distributor, jobber, vending machine operator or multiple retailer and no person may operate a warehouse in this state for the storage of cigarettes for another person without first filing an application for and obtaining the proper permit to perform such operations from the department.
(b) This section applies to all officers, directors, agents and stockholders holding 5 percent or more of the stock of any corporation applying for a permit under this section.
(c) Subject to ss. 111.321, 111.322 and 111.335, no permit under this section may be granted to any person to whom any of the following applies: 1. The person has been convicted of a misdemeanor, not involving chs. 340 to 349, at least 3 times. BEVERAGE AND TOBACCO TAXES 139.34511 2. The person has been convicted of a felony, unless pardoned. 3. The person is addicted to the use of a controlled substance or controlled substance analog under ch. 961. 4. The person has income which comes principally from gambling or has been convicted of 2 or more gambling offenses. 5. The person has been guilty of crimes relating to prostitution. 6. The person has been guilty of crimes relating to loaning money or anything of value to persons holding licenses or permits pursuant to ch. 125. 7. The person does not hold a permit under s. 77.52 (9), if the person is a retailer.
(d) Upon denial of a permit the department of revenue shall immediately notify such person in writing of the denial and the reasons therefor.
(e) A denial of a permit by the department of revenue shall be subject to judicial review under ch. 227.
(f) The person holds a valid certificate issued under s. 73.03 (50).
(3) No distributor or bonded direct marketer may affix stamps to cigarette packages, as provided in s. 139.32, unless the distributor or bonded direct marketer certifies to the department, in a manner prescribed by the department, that the distributor or bonded direct marketer purchases cigarettes directly from a manufacturer.
(4) A separate permit shall be required of and issued to each class of permittee and the holder of any permit shall perform only the operations thereby authorized. Such permit shall not be transferable from one person to another or from one premises to another. A separate permit shall be required for each place where cigarettes are stamped or where cigarettes are stored for sale at wholesale or through vending machines or multiple retail outlets.
(5) The ownership and operation of any retail outlet does not preclude a person from receiving a permit as a distributor or jobber, if more than 50 percent of that person’s sales of cigarettes are at wholesale to retailers, vending machine operators or multiple retailers neither owned, controlled nor operated by that person.
(6) A vending machine operator or a multiple retailer may acquire unstamped cigarettes from the manufacturers thereof and affix the stamps to packages or other containers only if the vending machine operator or multiple retailer also holds a permit as a distributor.
(7) The secretary may require by rule that stamps affixed to cigarette packages be identified by a permit or code number assigned to the person affixing them.