LRB-1930/2
ARG:cdc
2021 - 2022 LEGISLATURE
May 27, 2021 - Introduced by Representatives Knodl, Brooks, Wichgers,
Brandtjen, Tauchen and Sortwell, cosponsored by Senator Nass. Referred
to Committee on State Affairs.
AB364,1,8 1An Act to repeal 125.33 (7) (a) 1., 125.33 (7) (b), 125.69 (4) (a) 1., 125.69 (4) (b)
2and 125.69 (4) (e); to renumber 125.33 (7) (a) 2. and 125.69 (4) (a) 2.; to
3renumber and amend
125.33 (9); to amend 125.69 (6) (b) and 125.69 (6) (c);
4to repeal and recreate 125.33 (7) (title), 125.33 (7) (a) (title), 125.69 (4) (title)
5and 125.69 (4) (a) (title); and to create 125.33 (9) (c) of the statutes; relating
6to:
the penalty for a retailer's purchasing or possessing of alcohol beverages
7from a source other than a wholesaler and credit transactions between retailers
8and wholesalers.
Analysis by the Legislative Reference Bureau
This bill modifies the applicable penalty under certain circumstances when an
an alcohol beverage retailer purchases alcohol beverages from a source other than
a wholesaler in violation of current law. The bill also eliminates restrictions on the
maximum period of credit that a wholesaler may extend to a retailer in connection
with the purchase of alcohol beverages.
Retailer purchases of alcohol beverages from non-wholesaler
Under current law, alcohol beverages are generally distributed to consumers
under a three-tier distribution system: the producer sells to a wholesaler; the
wholesaler sells to a retailer; and the retailer sells to a consumer. With specific

exceptions, no person may sell outside the three-tier system and no person may sell
alcohol beverages to a consumer unless the seller possesses a license or permit
authorizing the sale. A Class “B" license authorizes the retail sale of fermented malt
beverages (beer) for consumption on or off the premises. A “Class B" license
authorizes the retail sale of intoxicating liquor, which includes wine and distilled
spirits, for consumption on the licensed premises and, subject to restrictions, off the
licensed premises. Class “B” and “Class B” licenses are generally issued together for
establishments such as restaurants, bars, and taverns. Class “A” and “Class A”
licenses authorize the retail sale of, respectively, beer and intoxicating liquor in
original packages for consumption off the licensed premises. Class “A” and “Class
A” licenses are often issued together for establishments such as grocery stores, liquor
stores, and convenience stores. With exceptions for certain sales of beer by brewers
and brewpubs, a retail licensee may not purchase alcohol beverages from, or possess
alcohol beverages purchased from, any person other than a wholesaler. If a retail
licensee purchases or possesses beer in violation of this prohibition, the penalty that
may be imposed is a fine of not more than $10,000 or imprisonment for not more than
nine months or both. If a retail licensee purchases or possesses intoxicating liquor
in violation of this prohibition, the penalty that may be imposed (or must be imposed
if item 3., below, applies) is one of the following:
1. If a “Class B" licensee purchases intoxicating liquor from a “Class A" licensee
for resale or possesses intoxicating liquor purchased from a “Class A" licensee for
resale, a fine of not more than $100.
2. If 1. does not apply and the total volume of intoxicating liquor purchased or
possessed in one month is 12 liters or less, a forfeiture of not more than $100.
3. If neither 1. nor 2. apply, a fine of not less than $1,000 nor more than $10,000.
This bill makes changes to some of these penalties. With respect to the penalty
under item 2., above, the bill increases the threshold amount from 12 liters of
intoxicating liquor to 48 liters of intoxicating liquor. With respect to the penalty
under item 1., above, the bill changes the penalty from a fine to a forfeiture, making
the violation a civil offense rather than a crime.
The bill also creates a tiered penalty structure for violations with respect to beer
that is similar to the tiered structure for intoxicating liquor violations. Under the
bill, if a retail licensee purchases or possesses beer in violation of the prohibition, the
penalty that may be imposed is one of the following:
1. If a Class “B" licensee purchases beer from a Class “A" licensee for resale or
possesses beer purchased from a Class “A" licensee for resale, a fine of not more than
$100.
2. If 1. does not apply and the total volume of beer purchased or possessed in
one month is 4,320 fluid ounces (15 cases) or less, a forfeiture of not more than $100.
3. If neither 1. nor 2. apply, a fine of not more than $10,000 or imprisonment
for not more than nine months or both.
Credit restrictions
Under current law, a retailer of beer may not purchase or acquire beer from a
wholesaler except upon payment of cash or extension of credit for not more than 15
days. A retailer of intoxicating liquor may not purchase or acquire intoxicating

liquor from a wholesaler except upon payment of cash or extension of credit for not
more than 30 days. A retailer that remains indebted to a wholesaler beyond the
applicable period is precluded from purchasing more alcohol beverages from any
wholesaler and may not be issued another retail license.
This bill eliminates these 15-day and 30-day maximum permissible credit
periods.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB364,1 1Section 1. 125.33 (7) (title) of the statutes is repealed and recreated to read:
AB364,3,22 125.33 (7) (title) Bona fide sale.
AB364,2 3Section 2. 125.33 (7) (a) (title) of the statutes is repealed and recreated to read:
AB364,3,44 125.33 (7) (a) (title) Consignment prohibited.
AB364,3 5Section 3. 125.33 (7) (a) 1. of the statutes is repealed.
AB364,4 6Section 4. 125.33 (7) (a) 2. of the statutes is renumbered 125.33 (7) (a).
AB364,5 7Section 5. 125.33 (7) (b) of the statutes is repealed.
AB364,6 8Section 6. 125.33 (9) of the statutes is renumbered 125.33 (9) (a) and amended
9to read:
AB364,3,1310 125.33 (9) (a) Except as provided in ss. 125.29 (3m) (b) and (c), 125.295 (1) (g),
11and 125.30 (4), no campus or retail licensee or permittee may purchase or possess
12fermented malt beverages purchased from any person other than a wholesaler
13holding a permit under this chapter for the sale of fermented malt beverages.
AB364,3,19 14(b) Any person who violates this subsection par. (a), if the total volume of
15fermented malt beverages purchased or possessed by that person in one month is
164,320 fluid ounces or less, may be required to forfeit not more than $100. A person
17who purchases or possesses more than 4,320 fluid ounces of fermented malt
18beverages in one month in violation of par. (a)
may be fined not more than $10,000
19or imprisoned for not more than 9 months or both.
AB364,7
1Section 7. 125.33 (9) (c) of the statutes is created to read:
AB364,4,52 125.33 (9) (c) Notwithstanding par. (b), a Class “B" licensee who purchases
3fermented malt beverages from a Class “A" licensee for resale or who possesses
4fermented malt beverages purchased from a Class “A" licensee for resale may be
5required to forfeit not more than $100.
AB364,8 6Section 8. 125.69 (4) (title) of the statutes is repealed and recreated to read:
AB364,4,77 125.69 (4) (title) Bona fide sale.
AB364,9 8Section 9. 125.69 (4) (a) (title) of the statutes is repealed and recreated to read:
AB364,4,99 125.69 (4) (a) (title) Consignment prohibited.
AB364,10 10Section 10. 125.69 (4) (a) 1. of the statutes is repealed.
AB364,11 11Section 11. 125.69 (4) (a) 2. of the statutes is renumbered 125.69 (4) (a).
AB364,12 12Section 12. 125.69 (4) (b) of the statutes is repealed.
AB364,13 13Section 13. 125.69 (4) (e) of the statutes is repealed.
AB364,14 14Section 14. 125.69 (6) (b) of the statutes is amended to read:
AB364,4,1915 125.69 (6) (b) Any person who violates par. (a), if the total volume of
16intoxicating liquor purchased or possessed by that person in one month is 12 48 liters
17or less, may be required to forfeit not more than $100. A person who purchases or
18possesses more than 12 48 liters of intoxicating liquor in one month in violation of
19par. (a) shall be fined not less than $1,000 nor more than $10,000.
AB364,15 20Section 15. 125.69 (6) (c) of the statutes is amended to read:
AB364,4,2421 125.69 (6) (c) Notwithstanding par. (b), a “Class B" licensee who purchases
22intoxicating liquor from a “Class A" licensee for resale or who possesses intoxicating
23liquor purchased from a “Class A" licensee for resale may be fined required to forfeit
24not more than $100.
AB364,4,2525 (End)
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