Amendment ASA1-AB40

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AB40-ASA1, s. 2604ej Section 2604ej. 125.28 (2) (c) of the statutes is repealed.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

AB40-ASA1, s. 2604ge Section 2604ge. 125.31 of the statutes is repealed.

AB40-ASA1, s. 2604gfe Section 2604gfe. 125.32 (3) (c) of the statutes is amended to read:

AB40-ASA1,1078,19 125.32 (3) (c) Hotels and restaurants the principal business of which is the furnishing of food and lodging to patrons, bowling centers, movie theaters, indoor horseshoe-pitching facilities, curling clubs, golf courses and golf clubhouses may remain open for the conduct of their regular business but may not sell fermented malt beverages during the hours specified in par. (a).

AB40-ASA1, s. 2604gfg Section 2604gfg. 125.32 (3m) (h) of the statutes is created to read:

AB40-ASA1,1078,21 125.32 (3m) (h) A movie theater.

AB40-ASA1, s. 2604gg Section 2604gg. 125.33 (1) (a) of the statutes is amended to read:

AB40-ASA1,1079,6 125.33 (1) (a) Except as provided in this section and ss. s. 125.295 and 125.31, no brewer, brewpub, or wholesaler may furnish, give, lend, lease, or sell any furniture, fixtures, fittings, equipment, money, or other thing of value to any campus or Class "B" licensee or permittee, or to any person for the use, benefit, or relief of any campus or Class "B" licensee or permittee, or guarantee the repayment of any loan or the fulfillment of any financial obligation of any campus or Class "B" licensee or permittee. Such actions may not be taken by the brewer, brewpub, or wholesaler directly or indirectly, or through a subsidiary or affiliate corporation or limited liability company, or by any officer, director, stockholder, partner, or member thereof.

AB40-ASA1, s. 2604gk Section 2604gk. 125.33 (7) (a) 1. a. of the statutes is amended to read:

AB40-ASA1,1079,10 125.33 (7) (a) 1. a. Receive, purchase, or acquire fermented malt beverages from any licensee, or wholesale permittee or from any brewpub acting under authority of s. 125.295 (1) (g), except for cash or credit for a period of not more than 15 days.

AB40-ASA1, s. 2604gm Section 2604gm. 125.33 (7) (a) 1. b. of the statutes is amended to read:

AB40-ASA1,1079,16 125.33 (7) (a) 1. b. Receive, purchase, or acquire fermented malt beverages from any licensee or wholesale permittee, or from any brewpub acting under authority of s. 125.295 (1) (g), if at the time of the receipt, purchase, or acquisition he or she is indebted to any licensee, wholesale permittee, or brewpub for fermented malt beverages received, purchased, acquired, or delivered more than 15 days earlier.

AB40-ASA1, s. 2604go Section 2604go. 125.33 (7) (c) of the statutes is amended to read:

AB40-ASA1,1079,25 125.33 (7) (c) Wholesalers and brewpubs holding retail licenses and permits Brewpubs. 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).

AB40-ASA1, s. 2604gq Section 2604gq. 125.33 (9) of the statutes is amended to read:

AB40-ASA1,1080,8 125.33 (9) Campuses and retailers to purchase from wholesalers. Except as provided in s. ss. 125.29 (3m) (b) and (c), 125.295 (1) (g), and 125.30 (4), 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 permit 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.

AB40-ASA1, s. 2604gs Section 2604gs. 125.33 (10) (a) 3. of the statutes is amended to read:

AB40-ASA1,1080,21 125.33 (10) (a) 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 that is a discontinued brand, or otherwise acquires the right to act as a wholesaler for a discontinued brand, 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 for purposes of selling the discontinued brand in a specifically defined territory, if the discontinued brand was sold by a terminated wholesaler in any portion of this same territory at a time immediately before the brand of fermented malt beverages became a discontinued brand.

AB40-ASA1, s. 2604gu Section 2604gu. 125.33 (11) of the statutes is amended to read:

AB40-ASA1,1081,4 125.33 (11) Source of fermented malt beverages. (a) Subject to s. 125.34 (3), no wholesaler who holds a retail license issued under this chapter authorized to make retail sales under s. 125.28 (1) (e) may sell a brand of fermented malt beverages to another a 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.

AB40-ASA1,1081,12 (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.

AB40-ASA1, s. 2604hc Section 2604hc. 125.33 (12) of the statutes is amended to read:

AB40-ASA1,1082,4 125.33 (12) Providing taste samples on Class "A" premises. Notwithstanding s. 125.34 (6) (a), with the consent of the Class "A" licensee, a brewer may provide, free of charge, on Class "A" premises, taste samples of fermented malt beverages to any person who has attained the legal drinking age for consumption on the premises during hours in which the Class "A" licensee is authorized under s. 125.25 (1) to provide taste samples or, if more restrictive, only during hours established by ordinance by a municipality under s. 125.32 (3) (d). The provision of taste samples under this subsection shall be subject to the same limitations that apply to taste samples provided by a Class "A" licensee under s. 125.25 (1). No brewer may provide as taste samples under this subsection any fermented malt beverages that the brewer did not purchase from the Class "A" licensee on whose premises the taste samples are provided. A brewer may provide taste samples under this subsection through an individual representing the brewer who is hired by the brewer and who is not employed by or an agent of a wholesaler other than, if the brewer holds a wholesale license, the brewer. All provisions of this subsection that apply to a brewer apply equally to any individual representing a brewer.

AB40-ASA1, s. 2604he Section 2604he. 125.33 (13) of the statutes is created to read:

AB40-ASA1,1082,14 125.33 (13) Wholesalers' source of supply. No wholesaler may purchase fermented malt beverages for resale unless the wholesaler purchases them either from the primary source of supply for the brand of fermented malt beverages sought to be sold or from a wholesaler within this state that holds a permit issued under s. 125.28. No wholesaler may sell fermented malt beverages purchased by the wholesaler to any other licensee or permittee under this chapter if the fermented malt beverages have not been purchased by the wholesaler from the primary source of supply or from a wholesaler within the state holding a permit issued under s. 125.28.

AB40-ASA1, s. 2604hg Section 2604hg. 125.34 (1) (g) of the statutes is amended to read:

AB40-ASA1,1082,18 125.34 (1) (g) "Wholesaler" means a licensee permittee under s. 125.28 and includes a brewer or out-of-state shipper that holds a wholesaler's license under s. 125.28.

AB40-ASA1, s. 2604hk Section 2604hk. 125.34 (2) (a) of the statutes is renumbered 125.34 (2) and amended to read:

AB40-ASA1,1083,8 125.34 (2) Except as provided in sub. (6) (b) and s. ss. 125.29 (3m) (b) and (c), 125.295 (1) (e) and (g), and 125.30 (4), 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, physically at rest at, and only then distributed from a wholesaler's warehouse premises covered by both a wholesaler's license permit 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 permit 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.

AB40-ASA1, s. 2604hm Section 2604hm. 125.34 (2) (bg), (bm) and (c) of the statutes are repealed.

AB40-ASA1, s. 2604ho Section 2604ho. 125.34 (3) (a) 1. of the statutes is amended to read:

AB40-ASA1,1083,17 125.34 (3) (a) 1. Subject to subd. 3., a 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.

AB40-ASA1, s. 2604hq Section 2604hq. 125.34 (3) (a) 3. of the statutes is repealed.