125.33(7)(c)
(c)
Wholesalers 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.
125.33(7)(d)
(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 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.
125.33(7m)
(7m) Conditional purchases. No Class "A" or Class "B" licensee may condition the purchase of fermented malt beverages from a brewer or wholesaler upon the furnishing by the brewer 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.
125.33(8)
(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 produces less than 300,000 barrels of fermented malt beverages in a calendar year.
125.33(9)
(9) Campuses and retailers to purchase from wholesalers. 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.
125.33(10)
(10) Compensation for termination of wholesaler distribution rights. 125.33(10)(a)1.
1. "Brand" means any word, name, group of letters, symbols, or combination thereof, including the name of the brewer if the brewer's name is also a significant part of the product name, adopted and used by a brewer to identify a specific fermented malt beverage product and to distinguish that product from other fermented malt beverages produced by that brewer or other brewers.
125.33(10)(a)2.
2. "Discontinued brand" means, with respect to a terminated wholesaler, any brand of fermented malt beverages for which a brewer, brewer'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.
125.33(10)(a)3.
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, brewer's agent, or holder of an out-of-state shipper's permit after the brewer, brewer'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.
125.33(10)(a)4.
4. "Terminated wholesaler" means a wholesaler with whom a brewer, brewer'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.
125.33(10)(b)
(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, brewer'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, brewer'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, brewer'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.
125.33(10)(c)
(c) A successor wholesaler is not required to compensate a terminated wholesaler under
par. (b) if the terminated wholesaler's agreement was terminated, cancelled, or not renewed for any of the following reasons:
125.33(10)(c)1.
1. The wholesaler or a principal of the wholesaler engaged in material fraudulent conduct or made substantial misrepresentations in its dealings with the brewer, brewer's agent, or holder of an out-of-state shipper's permit or with others regarding any brand of the brewer, brewer's agent, or holder of an out-of-state shipper's permit.
125.33(10)(c)2.
2. The wholesaler or a principal of the wholesaler was convicted of, or pleaded no contest to, a felony crime.
125.33(10)(c)3.
3. The wholesaler or a principal of the wholesaler knowingly distributed any brand of the brewer, brewer's agent, or holder of an out-of-state shipper's permit outside the territory authorized by the brewer, brewer's agent, or holder of an out-of-state shipper's permit for distribution of the brand.
125.33(10)(c)4.
4. The wholesaler or a principal of the wholesaler became insolvent or instituted bankruptcy proceedings, dissolved or liquidated the wholesaler's business, or assigned or attempted to assign the assets of the wholesaler's business for the benefit of creditors.
125.33(10)(d)
(d) If a terminated wholesaler and a successor wholesaler agree to 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, the successor wholesaler shall pay the agreed upon sum to the terminated wholesaler within 30 days of the date on which the parties reach the agreement. If the parties cannot agree on the compensation due to the terminated wholesaler, upon written demand of either party, the parties shall submit their dispute for binding arbitration, subject to
ch. 788, under the commercial arbitration rules of the American Arbitration Association if possible or, if not possible, by a nationally recognized arbitration association. The arbitration shall be conducted on an expedited basis to the extent an expedited proceeding is available. The arbitration shall commence within 90 days after the successor wholesaler obtains rights to receive a supply of a brand of fermented malt beverages, that is a discontinued brand of fermented malt beverages, of the terminated wholesaler, unless this time period is extended by mutual agreement of the parties or by the arbitrator. If the arbitrator awards compensation to the terminated wholesaler under this paragraph, the successor wholesaler shall pay the awarded compensation to the terminated wholesaler within 30 days of the date of the arbitrator's decision. The terminated wholesaler and the successor wholesaler shall each pay an equal share of the costs of arbitration.
125.33(10)(e)
(e) This subsection does not apply if the terminated wholesaler is a dealer, as defined in
s. 135.02 (2), whose business relationship as to any discontinued brand constitutes a dealership, as defined in
s. 135.02 (3) (a), as determined by a court of competent jurisdiction. Any arbitration proceeding under
par. (d) shall be stayed pending this determination.
125.33(11)
(11) Source of fermented malt beverages. 125.33(11)(a)(a) 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, brewer's agent or holder of an out-of-state shipper's permit supplying that brand.
125.33(11)(b)
(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 may bring an action against such wholesaler in any court of competent jurisdiction for damages sustained by the aggrieved wholesaler or the brewer as a consequence of the violation, together with the actual costs of the action. Notwithstanding
s. 814.04 (1), a wholesaler or the brewer who prevails in an action under this paragraph may recover reasonable actual attorney fees incurred in the action.
125.33 History
History: 1981 c. 79,
202;
1983 a. 26,
67,
68,
182,
192,
538;
1985 a. 15,
135;
1987 a. 308;
1989 a. 31,
253;
1991 a. 39;
1993 a. 112,
301;
1995 a. 320;
1997 a. 132,
166;
2001 a. 16,
38,
105;
2003 a. 303.
125.33 Cross-reference
Cross Reference: See also s.
Tax 7.23, Wis. adm. code.
125.33 Annotation
The selective discount ban under s. 66.054 (8a) (i) [now 125.33 (6)] is constitutional. State v. Kay Distributing Co., Inc.
110 Wis. 2d 29,
327 N.W.2d 188 (Ct. App. 1982).
125.33 Annotation
Sub. (1) (a) prohibits a person from having an interest in real estate leased to Class "B" licensee while also being a director, officer, or shareholder of a brewery.
77 Atty. Gen. 76.
INTOXICATING LIQUOR
125.51
125.51
Retail licenses and permits. 125.51(1)(a)(a) Every municipal governing body may grant and issue "Class A" and "Class B" licenses for retail sales of intoxicating liquor, and "Class C" licenses for retail sales of wine, from premises within the municipality to persons entitled to a license under this chapter as the issuing municipal governing body deems proper and may authorize an official or body of the municipality to issue temporary "Class B" licenses under
sub. (10). No "Class B" license may be issued to a winery under
sub. (3) (am) unless the winery has been issued a permit under
s. 125.53 and the winery is capable of producing at least 5,000 gallons of wine per year in no more than 2 locations.
125.51(1)(b)
(b) No member of the municipal governing body may sell or offer to sell to any person holding or applying for a license any bond, material, product or thing which may be used by the licensee in carrying on the business subject to licensure.
125.51(1)(c)1.1. Except as provided in
subd. 2., the municipal governing body, or the duly authorized committee of a city council, shall meet not later than May 15 annually, and be in session from day to day thereafter so long as may be necessary, for the purpose of acting upon license applications filed with it on or before April 15. The governing body or committee shall grant, issue or deny each application not later than June 15 for the ensuing license year. Licenses may be granted for issuance at a later date when the applicant has complied with all requirements for the issuance of the license. The governing body or committee may accept and act upon any application filed at any other time. The governing body or committee may not deny an application for renewal of an existing license unless a statement of the reason for the denial is included in its clerk's minutes.
125.51(1)(c)2.
2. The governing body of a 1st class city shall establish and publish notice of the dates on which it, or its duly authorized committee, will meet and act on license applications.
125.51(2)(a)(a) A "Class A" license authorizes the retail sale of intoxicating liquor for consumption off the premises where sold and in original packages and containers.
125.51(2)(b)
(b) Except as provided under
s. 125.69, "Class A" licenses may be issued to any person qualified under
s. 125.04 (5), except a person acting as an agent for or in the employ of another.
125.51(2)(c)
(c) "Class A" licenses shall particularly describe the premises for which issued and are not transferable, except as provided in
s. 125.04 (12).
125.51(2)(d)
(d) The annual fee for a "Class A" license shall be determined by the municipal governing body and shall be the same for all "Class A" licenses, except that the minimum fee is $50 and the maximum fee is $500.
125.51(3)(a)(a) A "Class B" license authorizes the retail sale of intoxicating liquor for consumption on the premises where sold by the glass and not in the original package or container. In addition, wine may be sold in the original package or container in any quantity to be consumed off the premises where sold. This paragraph does not apply in municipalities in which the governing body elects to come under
par. (b) or to a winery that has been issued a "Class B" license.
Paragraph (am) applies to all wineries that have been issued a "Class B" license.
125.51(3)(am)
(am) A "Class B" license issued to a winery authorizes the sale of wine to be consumed by the glass or in opened containers only on the premises where sold and also authorizes the sale of wine in the original package or container to be consumed off the premises where sold, but does not authorize the sale of fermented malt beverages or any intoxicating liquor other than wine.
125.51(3)(b)
(b) In all municipalities electing by ordinance to come under this paragraph, a retail "Class B" license authorizes the sale of intoxicating liquor to be consumed by the glass only on the premises where sold and also authorizes the sale of intoxicating liquor in the original package or container, in multiples not to exceed 4 liters at any one time, and to be consumed off the premises where sold. Wine, however, may be sold for consumption off the premises in the original package or otherwise in any quantity. This paragraph does not apply to a winery that has been issued a "Class B" license.
Paragraph (am) applies to all wineries that have been issued a "Class B" license.
125.51(3)(bm)
(bm) Notwithstanding
pars. (a) and
(b) and
s. 125.04 (3) (a) 3. and
(9), a "Class B" license authorizes a person operating a hotel to furnish a registered guest who has attained the legal drinking age with a selection of intoxicating liquor in the guest's room which is not part of the "Class B" premises. Intoxicating liquor furnished under this paragraph shall be furnished in original packages or containers and stored in a cabinet, refrigerator or other secure storage place. The cabinet, refrigerator or other secure storage place must be capable of being locked. The cabinet, refrigerator or other secure storage place shall be locked, or the intoxicating liquor shall be removed from the room, when the room is not occupied and when intoxicating liquor is not being furnished under this paragraph. A key for the lock shall be supplied to a guest who has attained the legal drinking age upon request at registration. The hotel shall prominently display a price list of the intoxicating liquor in the hotel room. Intoxicating liquor may be furnished at the time the guest occupies the room, but for purposes of this chapter, the sale of intoxicating liquor furnished under this paragraph is considered to occur at the time and place that the guest pays for the intoxicating liquor. Notwithstanding
s. 125.68 (4) (c), the guest may pay for the intoxicating liquor at any time if he or she pays in conjunction with checking out of the hotel. An individual who stocks or accepts payment for alcohol beverages under this paragraph shall be the licensee, the agent named in the license if the licensee is a corporation or limited liability company or the holder of a manager's or operator's license or be supervised by one of those individuals.
125.51(3)(bs)1.a.
a. "Coliseum" means a multipurpose facility designed principally for sports events, with a capacity of 18,000 or more persons.
125.51(3)(bs)1.b.
b. "Concessionaire" means a person designated by the owner or operator of a coliseum to operate premises in the coliseum and to provide intoxicating liquor to holders of coliseum suites.
125.51(3)(bs)2.
2. Notwithstanding
pars. (a) and
(b) and
s. 125.04 (3) (a) 3. and
(9), a "Class B" license authorizes a person operating a coliseum to furnish the holder of a coliseum suite who has attained the legal drinking age with a selection of intoxicating liquor in the coliseum suite that is not part of the "Class B" premises. Intoxicating liquor furnished under this subdivision shall be furnished in original packages or containers and stored in a cabinet, refrigerator or other secure storage place. The cabinet, refrigerator or other secure storage place or the coliseum suite must be capable of being locked. The cabinet, refrigerator or other secure storage place or the coliseum suite shall be locked, or the intoxicating liquor shall be removed from the coliseum suite, when the coliseum suite is not occupied and when intoxicating liquor is not being furnished under this subdivision. Intoxicating liquor may be furnished at the time the holder of the coliseum suite occupies the coliseum suite, but for purposes of this chapter, the sale of intoxicating liquor furnished under this subdivision is considered to occur at the time and place that the holder pays for the intoxicating liquor. Notwithstanding
s. 125.68 (4) (c), the holder of a coliseum suite may pay for the intoxicating liquor at any time if he or she pays in accordance with an agreement with the person operating the coliseum or with the concessionaire. An individual who stocks or accepts payment for alcohol beverages under this subdivision shall be the licensee, the agent named in the license if the licensee is a corporation or limited liability company or the holder of a manager's or operator's license or be supervised by one of those individuals.
125.51(3)(c)
(c) Except as provided under
s. 125.69, a "Class B" license may be issued to any person qualified under
s. 125.04 (5), except a person acting as an agent for or in the employ of another.
125.51(3)(d)
(d) "Class B" licenses shall particularly describe the premises for which issued and are not transferable, except as provided in
s. 125.04 (12).
125.51(3)(dm)
(dm) A municipality may issue a "Class B" license authorizing retail sales of intoxicating liquor on a railroad car while the railroad car is standing in a specified location in the municipality.
125.51(3)(e)1.1. Except as provided in
subds. 2. and
3., the annual fee for a "Class B" license shall be established by the municipal governing body and shall be the same for all "Class B" licenses, except that the minimum fee shall be $50 and the maximum fee shall be $500. The minimum fee does not apply to licenses issued to bona fide clubs and lodges situated and incorporated in the state for at least 6 years.
125.51(3)(e)2.
2. Each municipal governing body shall establish the fee, in an amount not less than $10,000, for an initial issuance of a reserve "Class B" license, as defined in
sub. (4) (a) 4., except that the fee for an initial issuance of a reserve "Class B" license to a bona fide club or lodge situated and incorporated in the state for at least 6 years is the fee established under
subd. 1. for such a club or lodge. The fee under this subdivision is in addition to any other fee required under this chapter. The annual fee for renewal of a reserve "Class B" license, as defined in
sub. (4) (a) 1., is the fee established under
subd. 1.
125.51(3)(e)3.
3. Each municipal governing body shall establish the annual fee for a "Class B" license issued under
sub. (4) (v). The initial fee may be different from the annual fee to renew the license.
125.51(3)(f)
(f) A "Class B" license may be issued only to a holder of a retail Class "B" license to sell fermented malt beverages unless the "Class B" license is the kind of "Class B" license specified under
par. (am).
125.51(3m)(a)(a) In this subsection "barroom" means a room that is primarily used for the sale or consumption of alcohol beverages.
125.51(3m)(b)
(b) A "Class C" license authorizes the retail sale of wine by the glass or in an opened original container for consumption on the premises where sold.
125.51(3m)(c)
(c) A "Class C" license may be issued to a person qualified under
s. 125.04 (5) for a restaurant in which the sale of alcohol beverages accounts for less than 50% of gross receipts and which does not have a barroom or for a restaurant in which the sale of alcohol beverages accounts for less than 50% of gross receipts and which has a barroom in which wine is the only intoxicating liquor sold. A "Class C" license may not be issued to a foreign corporation, a foreign limited liability company or a person acting as agent for or in the employ of another.
125.51(3m)(d)
(d) A "Class C" license shall particularly describe the premises for which it is issued.
125.51(3m)(e)
(e) The annual fee for a "Class C" license shall be determined by the municipal governing body issuing the license. The fee shall not exceed $100 and shall be the same for all "Class C" licenses.
125.51(4)(a)1.
1. "License" means a retail "Class B" license issued under
sub. (3) but does not include a "Class B" license issued to wineries under
sub. (3) (am).
125.51(4)(a)2.
2. "Population" means the number of inhabitants in the previous year determined by the department of administration under
s. 16.96 (2) for purposes of revenue sharing distribution.
125.51(4)(a)3.
3. "Quota" means the number of licenses which a municipality may grant or issue.
125.51(4)(a)4.
4. "Reserve "Class B" license" means a license that is not granted or issued by a municipality on December 1, 1997, and that is counted under
par. (br).
125.51(4)(am)
(am) No municipality may issue a license that would cause the municipality to exceed its quota.
125.51(4)(b)
(b) Except as provided in
pars. (c) and
(d), the quota of each municipality is the sum of the following:
125.51(4)(b)1g.
1g. The number of licenses granted or issued in good faith by the municipality and in force on December 1, 1997.
125.51(4)(bm)
(bm) The clerk of each municipality shall record the municipality's population, as defined in
par. (a) 2., and the number of licenses:
125.51(4)(br)1.1. Except as provided in
subd. 2., the number of reserve "Class B" licenses authorized to be issued by a municipality shall be determined as follows:
125.51(4)(br)1.c.
c. Divide the result under
subd. 1. b. by 2, except that if the result is not a whole number round the quotient down to the nearest whole number.
125.51(4)(br)1.e.
e. Add one license per each increase of 500 population to the population recorded under
par. (bm).
125.51(4)(br)1.f.
f. Add one license if the municipality had issued a license under s.
125.51 (4) (br) 1. e., 1999 stats., based on a fraction of 500 population, but a municipality's quota is only increased under this
subd. 1. f. as long as the total number of licenses issued by the municipality equals the maximum number of licenses authorized, including under this
subd. 1. f.
125.51(4)(br)2.
2. Notwithstanding
subd. 1., if the difference between the number of licenses determined under
par. (b) 1g. and under
par. (bm) 1. is 3 or fewer, the number of reserve "Class B" licenses authorized to be issued by that municipality is the difference between the number of licenses determined under
par. (b) 1g. and under
par. (bm) 1., plus one per each increase of 500 population to the population recorded under
par. (bm), plus one if the municipality had issued a license under s.
125.51 (4) (br) 2., 1999 stats., based on a fraction of 500 population but only as long as the total number of licenses issued by the municipality equals the maximum number of licenses authorized.
125.51(4)(c)
(c) If territory containing premises covered by a license or reserve "Class B" license is annexed to a municipality and if the municipality's quota would not otherwise allow a license or reserve "Class B" license for the premises, the quota is increased to include the license or reserve "Class B" license of each premises in the annexed territory.
125.51(4)(d)
(d) Detachment of territory decreases the quota of the remainder of the municipality by the number of licenses or reserve "Class B" licenses issued for premises in the detached territory, except that detachment does not decrease the quota of the remainder to less than one license per 500 persons or less than one license.
