Wisconsin Legislature: 20,2759d

(b) Restrictions on issuance of licenses and permits. No Class "A" or Class "B" license or permit may be issued to a person having an indebtedness for fermented malt beverages outstanding for more than 15 days. In each application for a Class "A" or Class "B" license or permit, the applicant shall state whether he or she has indebtedness for fermented malt beverages to any licensee or, permittee, or brewpub which has been outstanding for more than 15 days.

(c) Wholesalers and brewpubs holding retail licenses and permits. For purposes of this subsection, a person holding both a fermented malt beverage wholesale license and a fermented malt beverage retail license is deemed a fermented malt beverage retailer. For purposes of this subsection, a brewpub, when acting under authority of a retail license with respect to fermented malt beverages not manufactured by the brewpub, is deemed a fermented malt beverages retailer. This paragraph does not affect any provision of this subsection with respect to a brewpub acting under authority of s. 125.295 (1) (g).

(d) Penalties. A retail licensee or permittee who violates this subsection is subject to the penalties under s. 125.11 except that he or she may not be imprisoned. No brewer, brewpub, or wholesaler may be subjected to any penalty as the result of the sale of fermented malt beverages to a campus or retail licensee or permittee when purchased by the campus or retail licensee or permittee in violation of this subsection.

(7m) Conditional purchases. No Class "A" or Class "B" licensee may condition the purchase of fermented malt beverages from a brewer, brewpub, or wholesaler upon the furnishing by the brewer, brewpub, or wholesaler of any thing of value, other than the products purchased, to the licensee or to any person for the use, benefit, or relief of the licensee.

(8) Exclusive sales by wholesaler. A wholesaler may not sell or offer to sell a brand of fermented malt beverages exclusively to one Class "A" licensee or to a group of Class "A" licensees affiliated through common ownership, management or control, unless the brand of fermented malt beverages is produced by a brewer which that produces less than 300,000 barrels of fermented malt beverages in a calendar year or by a brewpub.

(9) Campuses and retailers to purchase from wholesalers. No Except as provided in s. 125.295 (1) (g), no campus or retail licensee or permittee may purchase or possess fermented malt beverages purchased from any person other than a wholesaler holding a license under this chapter for the sale of fermented malt beverages. Any person who violates this subsection may be fined not more than $10,000 or imprisoned for not more than 9 months or both.

(10) (a) 1. "Brand" means any word, name, group of letters, symbols, or combination thereof, including the name of the brewer or brewpub if the brewer's or brewpub's name is also a significant part of the product name, adopted and used by a brewer or brewpub to identify a specific fermented malt beverage product and to distinguish that product from other fermented malt beverages produced by that brewer or brewpub or other brewers or brewpubs.

2. "Discontinued brand" means, with respect to a terminated wholesaler, any brand of fermented malt beverages for which a brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit has terminated, cancelled, or failed to renew an agreement, whether oral or written, with the wholesaler to supply that brand.

3. "Successor wholesaler" means any wholesaler who enters into an agreement, whether oral or written, to obtain a supply of a brand of fermented malt beverages from a brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit after the brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit has terminated, cancelled, or failed to renew an agreement, whether oral or written, with a terminated wholesaler to supply that same brand of fermented malt beverages.

4. "Terminated wholesaler" means a wholesaler with whom a brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit has terminated, cancelled, or failed to renew an agreement, whether oral or written, to supply a brand of fermented malt beverages to that wholesaler.

(b) Except as provided in par. (c) and subject to pars. (d) and (e), a successor wholesaler shall compensate a terminated wholesaler for the fair market value of the terminated wholesaler's distribution rights to any discontinued brand of fermented malt beverages assumed by the successor wholesaler for the same territory, less any amount paid to the terminated wholesaler by the brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit for the discontinued brand. If the terminated wholesaler's distribution rights to any discontinued brand of fermented malt beverages are divided among 2 or more successor wholesalers, each successor wholesaler shall compensate the terminated wholesaler for the fair market value of the distribution rights to any discontinued brand of fermented malt beverages assumed by that successor wholesaler for the applicable part of the same territory, less any amount paid to the terminated wholesaler by the brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit for the discontinued brand. A terminated wholesaler may not receive under this paragraph total compensation from the successor wholesaler and brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit that exceeds the fair market value of the terminated wholesaler's distribution rights specified under this paragraph.

(c) 1. The wholesaler or a principal of the wholesaler engaged in material fraudulent conduct or made substantial misrepresentations in its dealings with the brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit or with others regarding any brand of the brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit.

3. The wholesaler or a principal of the wholesaler knowingly distributed any brand of the brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit outside the territory authorized by the brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit for distribution of the brand.

(11) Source of fermented malt beverages. (a) Subject to s. 125.34 (3), no wholesaler who holds a retail license issued under this chapter may sell a brand of fermented malt beverages to another retail licensee unless the wholesaler has an agreement for general wholesale distribution of that brand of fermented malt beverages with the brewer, brewpub, brewer's agent, brewpub's agent, or holder of an out-of-state shipper's permit supplying that brand.

(b) If a wholesaler who holds a retail license issued under this chapter violates par. (a), any other wholesaler aggrieved by such violation or the brewer or brewpub may bring an action against such wholesaler in any court of competent jurisdiction for damages sustained by the aggrieved wholesaler or the brewer or brewpub as a consequence of the violation, together with the actual costs of the action. Notwithstanding s. 814.04 (1), a wholesaler or the brewer or brewpub who prevails in an action under this paragraph may recover reasonable actual attorney fees incurred in the action.

20,2759cLh Section 2759cLh. 125.34 (title), (1) (a) and (c), (2) (a), (bg) and (bm), (3) (a) 1. and 2., (4) (a) and (5) of the statutes are amended to read:

125.34 (title) Distribution restrictions on wholesalers, brewers, brewpubs, and out-of-state shippers. (1) (a) "Brand" means any word, name, group of letters, symbol, or combination thereof, including the name of the brewer, brewpub, or out-of-state shipper if the brewer's, brewpub's, or out-of-state shipper's name is also a significant part of the product name, adopted and used by a brewer, brewpub, or out-of-state shipper to identify a specific fermented malt beverage product and to distinguish that product from other fermented malt beverages produced by that brewer, brewpub, or out-of-state shipper or other brewers, brewpubs, or out-of-state shippers.

(c) "Designated sales territory" means the geographical area identified in a written agreement between a wholesaler and a brewer, brewpub, or out-of-state shipper under which the wholesaler is authorized to distribute one or more brands of fermented malt beverages supplied by the brewer, brewpub, or out-of-state shipper.

(2) (a) No Except as provided in sub. (6) (b) and s. 125.295 (1) (e) and (g), no fermented malt beverages may be sold, transported, or delivered to a retailer unless, prior to such sale, transport, or delivery, the fermented malt beverages are first unloaded at and distributed from a wholesaler's warehouse premises covered by both a wholesaler's license issued under s. 125.28 and an alcohol beverage warehouse permit issued under s. 125.19, which premises shall be in this state and shall be a physically separate location from any retail premises or brewery premises. This paragraph does not apply to a wholesaler issued a wholesaler's license under s. 125.28 (1) (b) with respect to fermented malt beverages transported and delivered from a warehouse in an adjoining state unless the wholesaler's warehouse in the adjoining state is located on premises in the adjoining state used for the manufacture of fermented malt beverages.

(bg) Notwithstanding par. (a), a brewer that, together with the fermented malt beverages manufactured during the same year by all producers identified in s. 125.31 (1) (a) 1. a. to e. its brewer group, manufactures not more than 50,000 barrels of fermented malt beverages in a calendar year in any location may be issued a wholesaler's license for wholesale premises located on brewery premises.

(bm) Notwithstanding par. (a), a brewer that, together with the fermented malt beverages manufactured during the same year by all producers identified in s. 125.31 (1) (a) 1. a. to e. its brewer group, manufactures more than 50,000 barrels of fermented malt beverages in a calendar year in any location may be issued a wholesaler's license for wholesale premises located on brewery premises but may not sell or ship more than a total of 1,000 barrels of fermented malt beverages in any calendar year to retailers from these wholesale premises. Fermented malt beverages provided by a brewer to any retail premises for which the brewer holds the retail license shall not be included in any calculation of the 1,000 barrel limitation under this paragraph.

(3) (a) 1. Subject to subd. 3., a wholesaler may not sell, transport, or deliver any brand of fermented malt beverages unless the wholesaler has entered into a written agreement with the brewer, brewpub, or out-of-state shipper supplying the brand that grants to the wholesaler distribution rights for the brand and identifies the designated sales territory for which such distribution rights are granted, including the precise geographical area comprising the designated sales territory.

2. A brewer, brewpub, or out-of-state shipper may not, in any agreement under this paragraph, grant to more than one wholesaler distribution rights for the same brand in the same designated sales territory or in any part of the same designated sales territory.

(4) (a) Any retailer located outside the wholesaler's designated sales territory for the brand. This paragraph does not apply if another wholesaler that has been granted distribution rights for the brand in the designated sales territory where the sale, transportation, or delivery occurs is unable to service this designated sales territory and the brewer, brewpub, or out-of-state shipper granting distribution rights has, notwithstanding sub. (3) (a), given consent for the sale, transportation, or delivery, which consent shall be limited to the time period that another wholesaler is unable to service this designated sales territory. This paragraph does not apply if the wholesaler is also a brewer and another wholesaler to whom this brewer has granted distribution rights for the brand in the designated sales territory where the sale, transportation, or delivery occurs has, notwithstanding sub. (3) (a), given consent for the sale, transportation, or delivery or refused to service this territory.

(5) Deliveries Except as provided in sub. (6) (b) and s. 125.295 (1) (e) and (g), deliveries of fermented malt beverages to retailers may be made only by wholesalers and shall be made to retailers only at their retail premises. No retailer may transport fermented malt beverages from one retail premises to another retail premises for purposes of selling the fermented malt beverages at the other retail premises unless both retail premises are operated by a brewer or brewpub holding the retail licenses.

20,2759cm Section 2759cm. 125.51 (2) (am) of the statutes is created to read:

125.51 (2) (am) In addition to the authorization under par. (a), a "Class A" license also authorizes the licensee to provide, free of charge, to customers and visitors who have attained the legal drinking age, taste samples of intoxicating liquor, other than wine, that are not in original packages or containers and that do not exceed 0.5 fluid ounces each, for consumption on the "Class A" premises. No "Class A" licensee may provide, under this paragraph, more than 3 taste samples per day to any one person. Taste samples may be provided under this paragraph only between the hours of 11 a.m. and 7 p.m. Any other provision of this chapter applicable to retail sales of intoxicating liquor, other than wine, by a "Class A" licensee also applies to the provision of taste samples under this paragraph. No "Class A" license may provide taste samples under this paragraph that the "Class A" licensee did not purchase from a wholesaler. The authorization provided to a "Class A" licensee under this paragraph is in addition to the exception for a "Class A" licensee specified in s. 125.06 (13).

20,2759cs Section 2759cs. 125.51 (3) (bu) of the statutes is created to read:

125.51 (3) (bu) Notwithstanding ss. 125.04 (3) (a) 3. and (9) and 125.09 (1), in addition to the authorization specified in sub. (1) (a) and in sub. (3) (a) or (b), a "Class B" license issued under sub. (1) to a caterer also authorizes the caterer to provide intoxicating liquor, including its retail sale, at the National Railroad Museum in Green Bay during special events held at this museum. Notwithstanding subs. (1) (a) and (3) (a) and (b), a caterer may provide intoxicating liquor under this paragraph at any location at the National Railroad Museum even though the National Railroad Museum is not part of the caterer's licensed premises, as described under par. (d) in the caterer's "Class B" license, and even if the National Railroad Museum is not located within the municipality that issued the caterer's "Class B" license. A caterer that provides intoxicating liquor under this paragraph is subject to s. 125.68 (2) as if the intoxicating liquor were provided on the caterer's "Class B" licensed premises. This paragraph does not authorize the National Railroad Museum to sell intoxicating liquor at retail or to procure or stock intoxicating liquor for purposes of retail sale. This paragraph does not apply if, at any time, the National Railroad Museum holds a "Class B" license.

20,2759d Section 2759d. 125.51 (6) of the statutes is created to read:

125.51 (6) Face-to-face retail sales. Except as provided in sub. (3) (bm) and (bs) and except with respect to caterers, a retail license issued under this section authorizes only face-to-face sales to consumers at the licensed premises.

20,2759e Section 2759e. 125.52 (1) of the statutes is amended to read:

125.52 (1) Authorized activities. The department shall issue manufacturers' and rectifiers' permits which authorize the manufacture or rectification, respectively, of intoxicating liquor on the premises covered by the permit. A person holding a manufacturer's or rectifier's permit may manufacture, and bottle or wholesale wine, pursuant to the terms of the permit, without procuring a winery permit. A manufacturer's or rectifier's permit entitles the permittee to sell intoxicating liquor to wholesalers holding a permit under s. 125.54, and to other manufacturers and rectifiers holding a permit under this section, from the premises described in the permit. Holders of rectifiers' permits may sell intoxicating liquor rectified by the permittee to retailers without any other permit. No sales may be made for consumption on the premises of the permittee. Possession of a permit under this section does not authorize the permittee to sell tax-free intoxicating liquor and wines brought into this state under s. 139.03 (5).

20,2759em Section 2759em. 125.52 (4) of the statutes is created to read:

125.52 (4) Providing taste samples. A manufacturer or rectifier, or an individual representing a manufacturer or rectifier, may provide taste samples on "Class A" premises as authorized under s. 125.69 (8).

20,2759f Section 2759f. 125.52 (6) of the statutes is repealed.

20,2759g Section 2759g. 125.52 (8) of the statutes is repealed.

20,2759h Section 2759h. 125.53 (1) of the statutes is amended to read:

125.53 (1) The department shall issue only to a manufacturing winery in this state that holds a valid certificate issued under s. 73.03 (50) a winery permit authorizing the manufacture and bottling of wine on the premises covered by the permit for sale at wholesale to other licensees or permittees to wholesalers holding a permit under s. 125.54. A permittee winery holding a permit under this section may offer on the premises taste samples of wine manufactured on the premises to persons who have attained the legal drinking age. A permittee under this section may also have either a "Class A" or "Class B" license, but not both. If a "Class A" or "Class B" liquor license has also been issued to the winery, the winery may offer the taste samples on the "Class A" or "Class B" premises.

20,2759i Section 2759i. 125.53 (3) of the statutes is repealed.

20,2759j Section 2759j. 125.535 of the statutes is created to read:

125.535 Direct wine shippers' permits. (1) Authorized activities. The department shall issue direct wine shippers' permits authorizing the permittee to ship wine directly to an individual in this state who is of the legal drinking age, who acknowledges receipt of the wine shipped, and who is not intoxicated at the time of delivery.

(2) Annual permit fee. The department shall charge the following annual fee for each permit issued under this section:

(a) For a permittee that ships more than 90 liters of wine annually to individuals in this state, $100.

(b) For a permittee that ships not less than 27 liters nor more than 90 liters of wine annually to individuals in this state, $50.

(3) Persons eligible. (a) A direct wine shipper's permit may be issued under this section to any person that manufactures and bottles wine on premises covered by any of the following:

1. A manufacturer's or rectifier's permit under s. 125.52.

2. A winery permit under s. 125.53.

3. A winery license, permit, or other authorization issued to the winery by any state from which the winery will ship wine into this state.

(b) A winery located outside of this state is eligible for a direct wine shipper's permit under par. (a) 3. if all of the following apply:

1. The winery holds a valid business tax registration certificate issued under s. 73.03 (50).

2. The winery submits to the department, with any initial application or renewal for a certificate under s. 73.03 (50) or a permit under par. (a) 3., a copy of any current license, permit, or authorization issued to the winery by the state from which the winery will ship wine into this state.

(c) Notwithstanding s. 125.04 (5) (a), natural persons obtaining direct wine shippers' permits are not required to be residents of this state. Notwithstanding s. 125.04 (5) (a) 5., a person is not required to complete a responsible beverage server training course to be eligible for a permit under this section. Notwithstanding s. 125.04 (6), corporations or limited liability companies obtaining direct wine shippers' permits are not required to appoint agents.

(4) Annual report required. A permittee under this section shall submit a report to the department, by January 31 of each year, on forms furnished by the department, providing the identity, quantity, and price of all products shipped to individuals in this state during the previous calendar year, along with the name, address, and birthdate of each person who purchased these products and each person to whom these products were shipped.

(5) Labels. Containers of wine shipped to an individual in this state under this section shall be clearly labeled to indicate that the package may not be delivered to an underage person or to an intoxicated person.

(6) Restrictions. No individual may resell, or use for a commercial purpose, wine received by the individual that is shipped under authority of this section.

(7) Annual limit. No individual in this state may receive more than 108 liters of wine annually shipped under authority of the section. Each individual shall be responsible for compliance with this annual limit. An individual who violates this annual limit is subject to a warning issued by the department for the individual's first violation and a $500 fine for each violation by the individual that occurs after a warning has been issued by the department. This subsection does not apply to purchases made under a permit issued under s. 125.61.

20,2759k Section 2759k. 125.54 (1) of the statutes is amended to read:

125.54 (1) Authorized activities. The department shall issue wholesalers' permits authorizing the permittee to sell intoxicating liquor at wholesale from the premises described in the permit. Except as provided under s. 125.69 (1) (b) 3., the The permittee may not sell intoxicating liquor for consumption on the premises. If a wholesale permit is issued to a brewery that holds a "Class B" license, the permit shall authorize the wholesale sale of wine only. Possession of a permit under this section does not authorize the permittee to sell tax-free intoxicating liquor and wine brought into this state under s. 139.03 (5).

20,2759kc Section 2759kc. 125.54 (4) of the statutes is created to read:

125.54 (4) Taste sampling prohibited. Wholesalers holding a permit under this section, employees of such wholesalers, and individuals representing such wholesalers may not provide or participate in providing taste samples under ss. 125.51 (2) (am) and 125.69 (8).

20,2759kg Section 2759kg. 125.55 (1) (intro.) and (a) of the statutes are consolidated, renumbered 125.55 (1) and amended to read:

125.55 (1) The department may issue the following combination permits: (a) A a combination manufacturer's and rectifier's permit.

20,2759kh Section 2759kh. 125.55 (1) (b) of the statutes is repealed.

20,2759ki Section 2759ki. 125.55 (2) of the statutes is amended to read:

125.55 (2) A combination manufacturer's and wholesaler's permit may not be issued. A combination rectifier's and wholesaler's permit may not be issued.

20,2759km Section 2759km. 125.58 (1) of the statutes is amended to read:

125.58 (1) The department shall issue out-of-state shippers' permits which authorize persons located outside this state to sell or ship intoxicating liquor into this state. Except as provided under sub. (4), intoxicating liquor may be shipped into this state only to a person holding a manufacturer's, rectifier's, wholesaler's , industrial alcohol or medicinal alcohol permit under s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a permit under this section, to a person holding a manufacturer's or rectifier's permit under s. 125.52. Except as provided under sub. (4), a separate out-of-state shipper's permit is required for each location from which any intoxicating liquor is sold or shipped into this state, including the location from which the invoices are issued for the sales or shipments. Any person holding an out-of-state shipper's permit issued under this section may solicit orders for sales or shipments by the permittee without obtaining the sales solicitation permit required by s. 125.65, but every agent, salesperson or other representative who solicits orders for sales or shipments by an out-of-state shipper shall first obtain a permit for soliciting orders under s. 125.65. No holder of an out-of-state shipper's permit issued under this section may sell intoxicating liquor in this state or ship intoxicating liquor into this state unless the out-of-state shipper is the primary source of supply for that intoxicating liquor.

20,2759L Section 2759L. 125.58 (4) (a) (intro.) of the statutes is renumbered 125.58 (4) and amended to read:

125.58 (4) A winery located outside of this state may ship wine into this state as provided under s. 125.68 (10) (bm) if all of the following apply: 125.535 and is not required to hold an out-of-state shipper's permit under this section.

20,2759m Section 2759m. 125.58 (4) (a) 1. to 4. of the statutes are repealed.

20,2759mm Section 2759mm. 125.58 (4) (b) of the statutes is repealed.

20,2759n Section 2759n. 125.68 (10) (a) of the statutes is amended to read:

125.68 (10) (a) Except as provided in par. (bm) s. 125.535, no intoxicating liquor may be shipped into this state unless consigned to a person holding a wholesaler's permit for the sale of intoxicating liquor, other than a retail "Class B" permit under s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a permit under s. 125.58, consigned to a person holding a manufacturer's or rectifier's permit under s. 125.52.

20,2759o Section 2759o. 125.68 (10) (b) of the statutes is amended to read:

125.68 (10) (b) Except as provided in par. (bm) s. 125.535, no common carrier or other person may transport into and deliver within this state any intoxicating liquor unless it is consigned to a person holding a wholesaler's permit for the sale of intoxicating liquor, other than a retail "Class B" permit under s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a permit under s. 125.58, consigned to a person holding a manufacturer's or rectifier's permit under s. 125.52. Any common carrier violating this paragraph shall forfeit $100 for each violation.

20,2759p Section 2759p. 125.68 (10) (bm) of the statutes is repealed.

20,2759pg Section 2759pg. 125.68 (10) (bs) of the statutes is repealed.

20,2759pr Section 2759pr. 125.68 (10) (c) of the statutes is repealed.

20,2759q Section 2759q. 125.69 (1) (a) of the statutes is amended to read:

125.69 (1) (a) No intoxicating liquor manufacturer, rectifier, winery, out-of-state shipper permittee, or wholesaler may hold any direct or indirect interest in any "Class A" license or establishment and no "Class A" licensee may hold any direct or indirect interest in a wholesale permit or establishment, except that a winery that has a permit under s. 125.53 may have an ownership interest in a "Class A" license.

20,2759r Section 2759r. 125.69 (1) (b) 1. of the statutes is amended to read:

125.69 (1) (b) 1. Except as provided under subds. 2. to subd. 4., no intoxicating liquor manufacturer, rectifier, winery, out-of-state shipper permittee, or wholesaler may hold any direct or indirect interest in any "Class B" license or permit or establishment or "Class C" license or establishment and no "Class B" licensee or permittee or "Class C" licensee may hold any direct or indirect interest in a wholesale permit or establishment.

20,2759s Section 2759s. 125.69 (1) (b) 2. and 3. of the statutes are repealed.

20,2759t Section 2759t. 125.69 (1) (c) (intro.) of the statutes is renumbered 125.69 (1) (c) and amended to read:

125.69 (1) (c) No manufacturer, rectifier, winery, or out-of-state shipper permittee, whether located within or without this state, may hold any direct or indirect interest in any wholesale permit or establishment, except as provided in s. 125.53, and except that a manufacturer that is also a brewer may hold a permit issued under s. 125.54 for the wholesale sale of wine only. This paragraph does not prohibit any of the following persons from obtaining a permit under s. 125.65:. Except as provided in s. 125.53, no retail licensee may hold any direct or indirect interest in any manufacturer, rectifier, winery, or out-of-state shipper permittee.

20,2759u Section 2759u. 125.69 (1) (c) 1. to 3. of the statutes are repealed.

20,2759um Section 2759um. 125.69 (1) (d) of the statutes is created to read: