SB224,22,7 24125.34 (title) Distribution restrictions on wholesalers, brewers,
25brewpubs, and out-of-state shippers. (1) (a) "Brand" means any word, name,

1group of letters, symbol, or combination thereof, including the name of the brewer,
2brewpub,
or out-of-state shipper if the brewer's, brewpub's, or out-of-state
3shipper's name is also a significant part of the product name, adopted and used by
4a brewer, brewpub, or out-of-state shipper to identify a specific fermented malt
5beverage product and to distinguish that product from other fermented malt
6beverages produced by that brewer, brewpub, or out-of-state shipper or other
7brewers, brewpubs, or out-of-state shippers.
SB224,22,128 (c) "Designated sales territory" means the geographical area identified in a
9written agreement between a wholesaler and a brewer, brewpub, or out-of-state
10shipper under which the wholesaler is authorized to distribute one or more brands
11of fermented malt beverages supplied by the brewer, brewpub, or out-of-state
12shipper.
SB224,22,24 13(2) (a) No Except as provided in sub. (6) (b) and s. 125.295 (1) (e) and (g), no
14fermented malt beverages may be sold, transported, or delivered to a retailer unless,
15prior to such sale, transport, or delivery, the fermented malt beverages are first
16unloaded at and distributed from a wholesaler's warehouse premises covered by both
17a wholesaler's license issued under s. 125.28 and an alcohol beverage warehouse
18permit issued under s. 125.19, which premises shall be in this state and shall be a
19physically separate location from any retail premises or brewery premises. This
20paragraph does not apply to a wholesaler issued a wholesaler's license under s.
21125.28 (1) (b) with respect to fermented malt beverages transported and delivered
22from a warehouse in an adjoining state unless the wholesaler's warehouse in the
23adjoining state is located on premises in the adjoining state used for the manufacture
24of fermented malt beverages.
SB224,23,5
1(bg) Notwithstanding par. (a), a brewer that, together with the fermented malt
2beverages manufactured during the same year by all producers identified in s.
3125.31 (1) (a) 1. a. to e.
its brewer group, manufactures not more than 50,000 barrels
4of fermented malt beverages in a calendar year in any location may be issued a
5wholesaler's license for wholesale premises located on brewery premises.
SB224,23,156 (bm) Notwithstanding par. (a), a brewer that, together with the fermented malt
7beverages manufactured during the same year by all producers identified in s.
8125.31 (1) (a) 1. a. to e.
its brewer group, manufactures more than 50,000 barrels of
9fermented malt beverages in a calendar year in any location may be issued a
10wholesaler's license for wholesale premises located on brewery premises but may not
11sell or ship more than a total of 1,000 barrels of fermented malt beverages in any
12calendar year to retailers from these wholesale premises. Fermented malt beverages
13provided by a brewer to any retail premises for which the brewer holds the retail
14license shall not be included in any calculation of the 1,000 barrel limitation under
15this paragraph.
SB224,23,21 16(3) (a) 1. Subject to subd. 3., a wholesaler may not sell, transport, or deliver any
17brand of fermented malt beverages unless the wholesaler has entered into a written
18agreement with the brewer, brewpub, or out-of-state shipper supplying the brand
19that grants to the wholesaler distribution rights for the brand and identifies the
20designated sales territory for which such distribution rights are granted, including
21the precise geographical area comprising the designated sales territory.
SB224,23,2522 2. A brewer, brewpub, or out-of-state shipper may not, in any agreement under
23this paragraph, grant to more than one wholesaler distribution rights for the same
24brand in the same designated sales territory or in any part of the same designated
25sales territory.
SB224,24,12
1(4) (a) Any retailer located outside the wholesaler's designated sales territory
2for the brand. This paragraph does not apply if another wholesaler that has been
3granted distribution rights for the brand in the designated sales territory where the
4sale, transportation, or delivery occurs is unable to service this designated sales
5territory and the brewer, brewpub, or out-of-state shipper granting distribution
6rights has, notwithstanding sub. (3) (a), given consent for the sale, transportation,
7or delivery, which consent shall be limited to the time period that another wholesaler
8is unable to service this designated sales territory. This paragraph does not apply if
9the wholesaler is also a brewer and another wholesaler to whom this brewer has
10granted distribution rights for the brand in the designated sales territory where the
11sale, transportation, or delivery occurs has, notwithstanding sub. (3) (a), given
12consent for the sale, transportation, or delivery or refused to service this territory.
SB224,24,18 13(5) Deliveries Except as provided in sub. (6) (b) and s. 125.295 (1) (e) and (g),
14deliveries
of fermented malt beverages to retailers may be made only by wholesalers
15and shall be made to retailers only at their retail premises. No retailer may transport
16fermented malt beverages from one retail premises to another retail premises for
17purposes of selling the fermented malt beverages at the other retail premises unless
18both retail premises are operated by a brewer or brewpub holding the retail licenses.
SB224, s. 22 19Section 22. 125.54 (1) of the statutes is amended to read:
SB224,25,220 125.54 (1) Authorized activities. The department shall issue wholesalers'
21permits authorizing the permittee to sell intoxicating liquor at wholesale from the
22premises described in the permit. Except as provided under s. 125.69 (1) (b) 3., the
23permittee may not sell intoxicating liquor for consumption on the premises. If a
24wholesale permit is issued to a brewery brewer that holds a "Class B" license, the
25permit shall authorize the wholesale sale of wine only. Possession of a permit under

1this section does not authorize the permittee to sell tax-free intoxicating liquor and
2wine brought into this state under s. 139.03 (5).
SB224, s. 23 3Section 23. 125.69 (1) (d) of the statutes is created to read:
SB224,25,64 125.69 (1) (d) Except as provided in s. 125.295 (3) (c), no brewpub may hold any
5direct or indirect interest in any "Class B" license or permit or establishment or
6"Class C" license or establishment.
SB224, s. 24 7Section 24. 139.01 (1) and (2) of the statutes are amended to read:
SB224,25,98 139.01 (1) "Bottler" means any person other than a brewer or brewpub who
9places fermented malt beverages in bottles or similar containers.
SB224,25,12 10(2) "Brewer" means any person who manufactures fermented malt beverages
11for sale or transportation except that brewer does not include a permittee under s.
12125.295
.
SB224, s. 25 13Section 25. 139.01 (2c) and (2e) of the statutes are created to read:
SB224,25,1414 139.01 (2c) "Brewpub" means a permittee under s. 125.295.
SB224,25,16 15(2e) "Brewpub premises" means any premises covered by a permit issued
16under s. 125.295.
SB224, s. 26 17Section 26. 139.04 (2) of the statutes is amended to read:
SB224,25,2018 139.04 (2) Furnishing by a brewer or brewpub of fermented malt beverages to
19workmen employed in the brewery or brewpub for consumption on the brewery
20premises or brewpub premises without charge.
SB224, s. 27 21Section 27. 139.08 (4) of the statutes is amended to read:
SB224,26,1122 139.08 (4) Inspection for enforcement. Duly authorized employees of the
23department of justice and the department of revenue and any sheriff, police officer,
24marshal, or constable, within their respective jurisdictions, may at all reasonable
25hours enter any licensed premises, and examine the books, papers, and records of

1any brewer, brewpub, manufacturer, bottler, rectifier, wholesaler, or retailer, for the
2purpose of inspecting the same and determining whether the tax and fee imposed by
3ss. 139.01 to 139.25 have been fully paid, and may inspect and examine, according
4to law, any premises where fermented malt beverages or intoxicating liquors are
5manufactured, sold, exposed for sale, possessed, or stored, for the purpose of
6inspecting the same and determining whether the tax imposed by ss. 139.01 to
7139.25 has been fully paid, and whether ss. 139.01 to 139.25 and ch. 125 are being
8complied with. Any refusal to permit such examination of such premises is sufficient
9grounds under s. 125.12 for revocation or suspension of any license or permit granted
10for the sale of any fermented malt beverages or intoxicating liquors and is punishable
11under s. 139.25 (10).
SB224, s. 28 12Section 28. 139.09 of the statutes is amended to read:
SB224,26,16 13139.09 Registration. Every brewer, brewpub, bottler, manufacturer, rectifier,
14wholesaler, or retailer liable for payment of the occupational tax imposed in ss.
15139.01 to 139.25 shall hold a valid certificate under s. 73.03 (50). The secretary shall
16assign the person a registration number.
SB224, s. 29 17Section 29. 139.11 (2), (3) and (4) of the statutes are amended to read:
SB224,26,2518 139.11 (2) Report. Each brewer, brewpub, bottler, manufacturer, rectifier, and
19wholesaler shall on or before the 15th day of each calendar month or the dates
20prescribed by the secretary file a verified report of all fermented malt beverages or
21intoxicating liquor manufactured, received, sold, delivered, or shipped by him or her
22during the preceding calendar month, except that the department may allow
23wholesale, winery, and out-of-state shipper permittees whose tax liability is less
24than $500 per quarter to file on a quarterly basis. Quarterly reports shall be filed
25on or before the 15th of the next month following the close of the calendar quarter.
SB224,27,14
1(3) Secretary's powers. When the secretary finds that the records kept by any
2brewer, brewpub, bottler, manufacturer, rectifier, wholesaler, or retailer are in such
3condition than that an unusual amount of time is required to determine therefrom
4the amount of tax due, the secretary may give notice of such fact to such person and
5may require the records to be kept in such form as the secretary prescribes. If such
6requirements are not complied with within 30 days after the date of the notice, the
7brewer, brewpub, bottler, manufacturer, rectifier, wholesaler, or retailer shall pay
8the expenses reasonably attributable to the determination of tax at the rate of $30
9per day for each auditor. The secretary shall render a bill therefor by registered mail
10to the person charged with payment at the conclusion of the audit, which bill shall
11constitute notice of assessment and demand of payment thereof. The brewer,
12brewpub, bottler, manufacturer, rectifier, wholesaler , or retailer shall, within 10
13days after the mailing of the bill, pay its amount, and such payment shall be credited
14to the appropriation made in s. 20.566 (1) (a).
SB224,27,22 15(4) Confidentiality. Sections 71.78 (1) and (4) to (9) and 71.83 (2) (a) 3.,
16relating to confidentiality of income, franchise, and gift tax returns, apply to any
17information obtained from any person on a fermented malt beverage or intoxicating
18liquor tax return, report, schedule, exhibit, or other document or from an audit report
19relating to any of those documents, except that the department of revenue shall
20publish brewery brewer and brewpub production and sales statistics and shall
21publish or permit the publication of statistics on the total number of gallons of the
22types and brands of intoxicating liquor sold in this state.
SB224, s. 30 23Section 30. 139.18 (1) of the statutes is amended to read:
SB224,28,224 139.18 (1) The possession of any fermented malt beverages on any licensed
25premises, other than upon the premises of a brewer, brewpub, or bottler, shall be

1deemed prima facie evidence that such products are kept with intent to sell and that
2such products are subject to the tax herein imposed.
SB224, s. 31 3Section 31. 139.22 of the statutes is amended to read:
SB224,28,14 4139.22 Confiscation. If a duly authorized employee of the department of
5revenue or the department of justice or any sheriff, police officer, marshal, or
6constable, within his or her respective jurisdiction, discovers any fermented malt
7beverages upon any premises other than the premises of a brewer, brewpub, or
8bottler, or any intoxicating liquor upon any premises other than the premises of a
9manufacturer, rectifier, winery, or wholesaler, and upon which the tax has not been
10paid or which was possessed, kept, stored, manufactured, sold, distributed, or
11transported in violation of ss. 139.01 to 139.25 and ch. 125, the employee or any such
12officer may immediately seize the fermented malt beverages or intoxicating liquors.
13Any such fermented malt beverages or intoxicating liquors so seized shall be held by
14the department of revenue and disposed of under s. 125.14 (2) (e).
SB224, s. 32 15Section 32. 346.93 (1) of the statutes is amended to read:
SB224,28,2216 346.93 (1) No underage person, as defined under s. 125.02 (20m), may
17knowingly possess, transport, or have under his or her control any alcohol beverage
18in any motor vehicle unless the person is employed by a brewer, an, brewpub, alcohol
19beverage licensee, wholesaler, retailer, distributor, manufacturer , or rectifier and is
20possessing, transporting, or having such beverage in a motor vehicle under his or her
21control during his or her working hours and in the course of employment, as provided
22under s. 125.07 (4) (bm).
SB224, s. 33 23Section 33. Effective date.
SB224,28,2424 (1) This act takes effect on the 30th day beginning after publication.
SB224,28,2525 (End)
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