Amendment ASA1-AB40

AB40-ASA1, s. 2604bu Section 2604bu. 125.25 (2) (b) 1. of the statutes is amended to read:

AB40-ASA1,1067,2 125.25 (2) (b) 1. Beginning on May 5, 1994, a A Class "A" license may not be issued to a person holding a wholesaler's license permit issued under s. 125.28 or to a person who has a direct or indirect ownership interest in a premises operating under a wholesaler's license permit issued under s. 125.28.

AB40-ASA1, s. 2604db Section 2604db. 125.25 (2) (b) 2., 3. and 4. of the statutes are repealed.

AB40-ASA1, s. 2604dd Section 2604dd. 125.25 (3) of the statutes is amended to read:

AB40-ASA1,1067,8 125.25 (3) Class "A" licenses shall particularly describe the premises for which issued and are not transferable, except under sub. (2) (b) 4. and s. 125.04 (12). A Class "A" license is subject to revocation for violation of any of the terms or provisions thereof.

AB40-ASA1, s. 2604df Section 2604df. 125.26 (1) of the statutes is amended to read:

AB40-ASA1,1067,18 125.26 (1) Every municipal governing body may issue Class "B" licenses for the sale of fermented malt beverages from premises within the municipality and may authorize an official or body of the municipality to issue temporary Class "B" licenses under sub. (6). Subject to s. 125.34 (5) and (6), a A Class "B" license authorizes retail sales of fermented malt beverages to be consumed either on the premises where sold or off the premises. A license may be issued after July 1. That license shall expire on the following June 30. Persons holding a Class "B" license may sell beverages containing less than 0.5% of alcohol by volume without obtaining a license under s. 66.0433 (1).

AB40-ASA1, s. 2604dh Section 2604dh. 125.26 (2) (b) 1. of the statutes is amended to read:

AB40-ASA1,1067,21 125.26 (2) (b) 1. Except as provided in ss. s. 125.295 and 125.31, Class "B" licenses may not be issued to brewers or brewpubs.

AB40-ASA1, s. 2604dj Section 2604dj. 125.26 (2) (b) 2. a. of the statutes is renumbered 125.26 (2) (b) 2. and amended to read:

AB40-ASA1,1068,3 125.26 (2) (b) 2. Except as provided in s. 125.29, beginning on May 5, 1994, a A Class "B" license may not be issued to a person holding a wholesaler's license permit issued under s. 125.28 or to a person who has a direct or indirect ownership interest in a premises operating under a wholesaler's license permit issued under s. 125.28.

AB40-ASA1, s. 2604dm Section 2604dm. 125.26 (2) (b) 2. b. and c. of the statutes are repealed.

AB40-ASA1, s. 2604do Section 2604do. 125.275 (2) (b) 1. of the statutes is renumbered 125.275 (2) (b) and amended to read:

AB40-ASA1,1068,10 125.275 (2) (b) Beginning on May 5, 1994, an An industrial fermented malt beverages permit may not be issued to a person holding a wholesaler's license permit issued under s. 125.28 or to a person who has a direct or indirect ownership interest in a premises operating under a wholesaler's license permit issued under s. 125.28.

AB40-ASA1, s. 2604dp Section 2604dp. 125.275 (2) (b) 2. and 3. of the statutes are repealed.

AB40-ASA1, s. 2604dq Section 2604dq. 125.28 (title) of the statutes is amended to read:

AB40-ASA1,1068,13 125.28 (title) Wholesalers' licenses permits.

AB40-ASA1, s. 2604ds Section 2604ds. 125.28 (1) of the statutes is amended to read:

AB40-ASA1,1068,21 125.28 (1) (a) Subject to par. (b), every municipal governing body the department may issue licenses permits to wholesalers for the sale of fermented malt beverages from premises within the municipality this state, which premises shall comply with the requirements under s. 125.34 (2). Subject to s. 125.34, and except as provided in pars. (e) and (f), a wholesaler's license permit authorizes sales of fermented malt beverages only in original packages or containers to retailers or wholesalers, not to be consumed in or about the wholesaler's premises.

AB40-ASA1,1069,9 (b) If a wholesaler does not maintain any warehouse in this state but is licensed and maintains a warehouse in an adjoining state that allows wholesalers licensed holding a wholesaler's permit in this state to deliver fermented malt beverages to retailers in the adjoining state without warehousing in that state and that further requires that all fermented malt beverages be first unloaded and physically at rest at, and distributed from, the warehouse of the licensed wholesaler in that state, the wholesaler's license permit shall be issued by the governing body of the municipality in which some part of the wholesaler's business is conducted in this state department. Notwithstanding s. 125.04 (5) (a) 2. and (c) and (6), the municipal governing body department may issue the wholesaler's license permit to a wholesaler described in this paragraph who is a natural person and not a resident of this state or that is a corporation or limited liability company and has not appointed an agent in this state.

AB40-ASA1,1069,11 (c) No additional license or permit is required for the solicitation of orders for sale to or by licensed wholesalers holding a permit under this section.

AB40-ASA1,1069,14 (d) Wholesalers licensed 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. 125.25 (1) and 125.33 (12).

AB40-ASA1, s. 2604du Section 2604du. 125.28 (1) (e) and (f) of the statutes are created to read:

AB40-ASA1,1069,19 125.28 (1) (e) Notwithstanding ss. 125.04 (9) and 125.09 (1), if a wholesaler was issued a retail license prior to January 1, 2011, then the wholesaler may, under its wholesaler's permit, continue to sell at retail fermented malt beverages to individuals as was permitted under the previously issued retail license.

AB40-ASA1,1069,22 (f) A wholesaler's permit authorizes the wholesaler to sell or give fermented malt beverages to its employees. Fermented malt beverages may be consumed on a wholesaler's premises at events not open to the general public.

AB40-ASA1, s. 2604ed Section 2604ed. 125.28 (2) (a) of the statutes is amended to read:

AB40-ASA1,1070,3 125.28 (2) (a) A wholesaler's license permit 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 person. Notwithstanding s. 125.04 (5) (a) 5., a person is not required to complete a responsible beverage server training course to be qualified for a license permit under this section.

AB40-ASA1, s. 2604ef Section 2604ef. 125.28 (2) (b) (intro.) of the statutes is amended to read:

AB40-ASA1,1070,7 125.28 (2) (b) (intro.) Except as provided in par. (c) and s. 125.29, beginning on May 5, 1994, a A wholesaler's license permit may not be issued to any of the following:

AB40-ASA1, s. 2604eg Section 2604eg. 125.28 (2) (b) 1. b. and c. and 2. of the statutes are amended to read:

AB40-ASA1,1070,11 125.28 (2) (b) 1. b. A Class "B" license issued under s. 125.26, except as provided in s. 125.29 (4).

AB40-ASA1,1070,12 c. A Class "B" permit issued under s. 125.27, except as provided in s. 125.29 (4).

AB40-ASA1,1070,15 2. A Except as provided in s. 125.33 (2m), a person who has a direct or indirect ownership interest in a premises operating under one or more of the licenses or permits listed in subd. 1. a. to e. f.

AB40-ASA1, s. 2604eh Section 2604eh. 125.28 (2) (b) 1. f. of the statutes is created to read:

AB40-ASA1,1070,17 125.28 (2) (b) 1. f. A brewer's permit issued under s. 125.29.

AB40-ASA1, s. 2604ej Section 2604ej. 125.28 (2) (c) of the statutes is repealed.

AB40-ASA1, s. 2604em Section 2604em. 125.28 (2) (d) and (e) of the statutes are created to read:

AB40-ASA1,1070,23 125.28 (2) (d) Notwithstanding par. (b) 1. f. and 2., a wholesaler may not hold any ownership interest in any brewer, except a wholesaler that holds an ownership interest in a brewer on the effective date of this paragraph .... [LRB inserts date], may continue to hold that interest.

AB40-ASA1,1071,2 (e) 1. Any person holding an unexpired wholesaler's license issued under s. 125.28, 2009 stats., prior to January 1, 2012, shall be treated as holding a valid wholesaler's permit under this section until January 1, 2013. On January 1, 2013, all wholesaler's licenses issued under s. 125.28, 2009 stats., shall be void.

AB40-ASA1,1071,7 2. After January 1, 2012, the department shall issue to each person holding an unexpired wholesaler's license issued under s. 125.28, 2009 stats., a wholesaler's permit if the person does not hold a license or permit prohibited under par. (b). The issuance of a wholesaler's permit by the department to any person shall invalidate any previous wholesaler's license issued under s. 125.28, 2009 stats., to the person.

AB40-ASA1, s. 2604eo Section 2604eo. 125.28 (3) of the statutes is amended to read:

AB40-ASA1,1071,12 125.28 (3) Wholesalers' licenses permits shall particularly describe the premises for which issued and are not transferable, except as provided in ss. s. 125.04 (12) and 125.25 (2) (b) 4. A wholesaler's license permit is subject to revocation for violation of any of the terms or provisions thereof.

AB40-ASA1, s. 2604eq Section 2604eq. 125.28 (4) of the statutes is amended to read:

AB40-ASA1,1071,19 125.28 (4) The amount of the license permit fee shall be determined established by the municipal governing body issuing the license but department and shall be an amount that is sufficient to fund one special agent position dedicated to alcohol and tobacco enforcement at the department, but the permit fee may not exceed $25 $2,500 per year or fractional part thereof. All permit fees received under this subsection shall be credited to the appropriation account under s. 20.566 (1) (hd).

AB40-ASA1, s. 2604es Section 2604es. 125.28 (5) of the statutes is created to read:

AB40-ASA1,1072,2 125.28 (5) (a) The premises described in a permit issued under this section shall be capable of warehousing fermented malt beverages. Any fermented malt beverages sold by the wholesaler shall be physically unloaded at the premises described in the permit, or at any warehouse premises for which the wholesaler also holds a permit under this section and a permit issued under s. 125.19, prior to being delivered to a retail licensee or to another wholesaler.

AB40-ASA1,1072,9 (b) A wholesaler under this section shall annually sell and deliver fermented malt beverages to at least 25 retail licensees or other wholesalers that do not have any direct or indirect interest in each other or in the wholesaler. The department may not issue a permit under this section unless the applicant represents to the department an intention to satisfy this requirement, and may not renew a permit issued under this section unless the wholesaler demonstrates that this requirement has been satisfied.

AB40-ASA1,1072,12 (c) No fermented malt beverages retail licensee or wholesaler may receive a benefit from a violation under par. (a) or (b) with knowledge of the circumstances giving rise to the violation.

AB40-ASA1,1072,17 (d) 1. A wholesaler that violates this subsection shall be fined not more than $10,000. In addition, a court shall order the wholesaler to forfeit an amount equal to any profit gained by the wholesaler or retail licensee that violates par. (c), or by both, resulting from the violation, and the court shall further order that the wholesaler's permit be revoked.

AB40-ASA1,1072,21 2. A court shall order a retail licensee or wholesaler that violates this subsection to forfeit an amount equal to any profit gained by the retail licensee or wholesaler resulting from the violation, and the court shall further order that the retail license or wholesaler's permit be revoked.

AB40-ASA1,1072,24 3. This paragraph shall not affect the authority of any municipality or the department to revoke, suspend, or refuse to renew or issue a license or permit under s. 125.12.

AB40-ASA1,1073,9 (e) The department shall promulgate rules to administer and enforce the requirements under this subsection. The rules shall ensure coordination between the department's issuance and renewal of permits under this section and its enforcement of the requirements of this subsection, and shall require that all applications for issuance or renewal of permits under this section be processed by department personnel generally familiar with activities of fermented malt beverages wholesalers. The department shall establish by rule minimum requirements for warehouse facilities on premises described in permits issued under this section and for periodic site inspections by the department of such warehouse facilities.

AB40-ASA1, s. 2604eu Section 2604eu. 125.29 (1) of the statutes is amended to read:

AB40-ASA1,1073,14 125.29 (1) Permit. No person may operate as a brewer unless that person obtains a permit from the department. Each wholesaler required to register under s. 139.09 shall obtain a permit under this subsection. A permit under this section may only be issued to a person who holds a valid certificate issued under s. 73.03 (50).

AB40-ASA1, s. 2604fc Section 2604fc. 125.29 (2) (title) of the statutes is repealed and recreated to read:

AB40-ASA1,1073,17 125.29 (2) (title) Interest restrictions.

AB40-ASA1, s. 2604fe Section 2604fe. 125.29 (2) of the statutes is renumbered 125.29 (2) (a) and amended to read:

AB40-ASA1,1073,22 125.29 (2) (a) Except as provided in s. 125.31, no No person holding a Class "A" license, Class "B" license or permit, or wholesaler's permit issued under this chapter may register as a brewer.

AB40-ASA1, s. 2604fg Section 2604fg. 125.29 (2) (b) of the statutes is created to read:

AB40-ASA1,1073,25 125.29 (2) (b) 1. Except as provided in subd. 2. or 3., no brewer may hold any ownership interest in any wholesaler.

AB40-ASA1,1074,2 2. A brewer may hold an ownership interest of less than 50 percent in a wholesaler if this ownership interest will not occur for more than 3 years.

AB40-ASA1,1074,9 3. If a wholesaler that has been granted distribution rights by a brewer for a brand in a designated sales territory is unable to service the designated sales territory for any reason, including the discontinuation of the wholesaler's distribution rights, bankruptcy, or criminal prosecution of the wholesaler in connection with operation of the wholesaler, and the reason is not the result of an action by the brewer, then a brewer shall be allowed, for a period of not more than one year, to take temporary control and operation of the wholesaler.

AB40-ASA1, s. 2604fi Section 2604fi. 125.29 (3) of the statutes is repealed and recreated to read:

AB40-ASA1,1074,12 125.29 (3) Authorized activities. The department shall issue brewer's permits to eligible applicants authorizing all of the following:

AB40-ASA1,1074,13 (a) The manufacture of fermented malt beverages on the brewery premises.

AB40-ASA1,1074,15 (b) The bottling, packaging, possession, and storage of fermented malt beverages on the brewery premises.

AB40-ASA1,1074,17 (c) The transportation of fermented malt beverages between the brewery premises and any depot or warehouse maintained by the brewer.

AB40-ASA1,1074,21 (d) The sale, shipment, transportation, and delivery, in original unopened packages or containers, to wholesalers, from the brewery premises, of fermented malt beverages that have been manufactured by the brewer on those premises or on other premises of the brewer.

AB40-ASA1,1074,25 (e) Notwithstanding ss. 125.04 (9) and 125.09 (1), the retail sale of fermented malt beverages that have been manufactured on the brewery premises or on other premises of the brewer for on-premise consumption by individuals at the brewery premises or an off-site retail outlet established by the brewer.

AB40-ASA1,1075,5 (f) Notwithstanding ss. 125.04 (9) and 125.09 (1), the retail sale to individuals of fermented malt beverages, in original unopened packages or containers, that have been manufactured on the brewery premises or on other premises of the brewer for off-premise consumption by individuals, if the sale occurs at the brewery premises or at an off-site retail outlet established by the brewer.

AB40-ASA1,1075,12 (g) Notwithstanding ss. 125.04 (9) and 125.09 (1), the retail sale of fermented malt beverages, for on-premise consumption or for off-premise consumption in original unopened packages or containers, that have been manufactured on another brewery premises in this state if the fermented malt beverages have been purchased by the brewer from a wholesaler holding a permit under s. 125.28 or from another brewery located in this state that manufactures 300,000 or less barrels of beer in a calendar year.

AB40-ASA1,1075,18 (h) Notwithstanding ss. 125.04 (9) and 125.09 (1), the retail sale of intoxicating liquor, for on-premise consumption by individuals at the brewery premises or an off-site retail outlet established by the brewer, if the brewer held, on June 1, 2011, a license or permit authorizing the retail sale of intoxicating liquor and if the intoxicating liquor has been purchased by the brewer from a wholesaler holding a permit under s. 125.54.

AB40-ASA1,1075,20 (i) The provision of free taste samples on the brewery premises, at an off-site retail outlet established by the brewer, or as authorized under s. 125.33 (12).

AB40-ASA1,1075,23 (j) The ownership, maintenance, or operation of places for the sale of fermented malt beverages at the state fair park or on any county fairgrounds located in this state.

AB40-ASA1, s. 2604fk Section 2604fk. 125.29 (3m) of the statutes is created to read:

AB40-ASA1,1076,2 125.29 (3m) Sales to retailers. (a) Except as provided in pars. (b) and (c), no brewer may sell fermented malt beverages to a retail licensee.

AB40-ASA1,1076,8 (b) A brewer that manufactures 300,000 or less barrels of fermented malt beverages in a calendar year from all locations may sell, ship, transport and deliver to retailers, from the brewery premises, fermented malt beverages, in original unopened packages or containers, that have been manufactured on the brewery premises, if the brewer complies with the requirements in ss. 125.33 and 125.34, as applicable, to the same extent as if the brewer were a wholesaler.

AB40-ASA1,1076,16 (c) If a wholesaler that has been granted distribution rights by a brewer for a brand in a designated sales territory is unable to service the designated sale territory for any reason, including the discontinuation of the wholesaler's distribution rights, bankruptcy, or criminal prosecution of the wholesaler in connection with operation of the wholesaler, and the reason is not the result of an action by the brewer, then a brewer shall be allowed, for a period of not more than one year, to sell or ship any brand of fermented malt beverages to retailers located in the wholesaler's designated sales territory.

AB40-ASA1, s. 2604fm Section 2604fm. 125.29 (4) of the statutes is repealed.

AB40-ASA1, s. 2604fo Section 2604fo. 125.29 (6) of the statutes is repealed and recreated to read:

AB40-ASA1,1076,25 125.29 (6) Restaurants. A brewer may operate a restaurant on the brewery premises and at an off-site retail outlet established by the brewer. A brewer may not hold a restaurant permit for the operation of a restaurant at any other location except that a brewer may possess or hold an indirect interest in a Class "B" license for not more than 20 restaurants in each of which the sale of alcohol beverages accounts for less than 60 percent of the restaurant's gross receipts if no fermented malt beverages manufactured by the brewer are offered for sale in any of these restaurants.

AB40-ASA1, s. 2604fq Section 2604fq. 125.295 (2) (a) 6. c. of the statutes is amended to read:

AB40-ASA1,1077,2 125.295 (2) (a) 6. c. A wholesaler's license permit issued under s. 125.28.

AB40-ASA1, s. 2604fs Section 2604fs. 125.30 (1) of the statutes is amended to read:

AB40-ASA1,1077,15 125.30 (1) The department shall issue out-of-state shippers' permits which, except as provided in s. 125.34 (6) (c) sub. (4), authorize the permittee to ship fermented malt beverages only to holders of a wholesaler's license permit issued under s. 125.28. Except with respect to any shipment from a warehouse in an adjoining state by a wholesaler issued a wholesale license permit under s. 125.28 (1) (b), no person may receive fermented malt beverages in this state which have been directly shipped from outside this state by any person other than the holder of a permit issued under this section. Subject to s. 125.34 (2) and (6) (c), all shipments of fermented malt beverages to a wholesaler of fermented malt beverages in this state, whether shipped to the wholesaler from inside this state or from outside this state, shall be unloaded in, physically at rest in, and only then distributed from the wholesaler's warehouse in this state.

AB40-ASA1, s. 2604fu Section 2604fu. 125.30 (3) of the statutes is amended to read:

AB40-ASA1,1078,3 125.30 (3) Out-of-state shippers' permits may be issued only to a person who holds a valid certificate issued under s. 73.03 (50) and , who is qualified under s. 125.04 (5), who does not maintain an office or street address in this state, and who is the primary source of supply for the brand of fermented malt beverages. An out-of-state shipper's permit may not be issued to a person determined by the department to be primarily engaged in wholesale or retail sales in another state. Notwithstanding s. 125.04 (5) (a), natural persons obtaining out-of-state 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 qualified for a permit under this section. Notwithstanding s. 125.04 (6), corporations or limited liability companies obtaining out-of-state shippers' permits are not required to appoint agents.

AB40-ASA1, s. 2604gd Section 2604gd. 125.30 (4) of the statutes is created to read:

AB40-ASA1,1078,12 125.30 (4) An out-of-state brewer that manufactures 300,000 barrels or less of fermented malt beverages in a calendar year from all locations and that holds an out-of-state shipper's permit may sell and ship fermented malt beverages directly to retail licensees if the out-of-state brewer registers with the department, files whatever periodic reports with the department as the department may require, and complies with the requirements in ss. 125.33 and 125.34, as applicable, to the same extent as if the out-of-state brewer were a wholesaler holding a permit under s. 125.28.