13. Eliminates the limit on the number of manufacturers', rectifiers', or liquor
wholesalers' permits one person may hold and allows a beer wholesaler to transfer
its wholesaler's permit to a different location within the state.
14. Increases the amount of the safe ride program surcharge and requires
municipalities to provide information to retailers about the safe ride program.
15. Makes changes relating to the occupational tax liability of producers of
alcohol beverages.
16. Changes the definition of “fermented malt beverages.”
17. Establishes a $500 fee for permits issued by the division if no fee is currently
charged for the permit.
18. Creates an operator's permit issued by the division that is similar to an
operator's license (commonly referred to as a bartender's license) issued by a
municipality.
19. Allows a municipality to transfer a retail liquor license that is subject to the
quota system to another municipality in the same county.
20. Creates a closing hour exception for certain retailers in southeast
Wisconsin during a 2024 national political convention.
21. Modifies a licensing exception applicable to beer provided on brewery
premises.
22. Allows a retail license to be issued for an axe throwing facility and allows
an underage person, without a parent or guardian, to be on these licensed premises.
23. Specifies that, subject to certain conditions, a “Class B” retailer may
prepare and store mixed drinks up to 48 hours prior to sale to consumers.
Background
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. Also under current law, DOR issues permits to alcohol beverage
producers that authorize specified activities, while municipalities issue retail
licenses to alcohol beverage retailers. With limited exceptions, a retail licensee may
not purchase alcohol beverages from, or possess alcohol beverages purchased from,
any person other than a wholesaler.
Under current law, 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. Intoxicating liquor includes wine and distilled spirits. Class “A”
and “Class A” licenses are often issued together for grocery stores or liquor stores.
A Class “B" license authorizes the retail sale of beer for consumption on or off the
premises. Except when issued to a winery, a “Class B" license authorizes the retail
sale of intoxicating liquor for consumption on the licensed premises and, subject to
restrictions, the retail sale of intoxicating liquor for consumption off the licensed
premises. Class “B” and “Class B” licenses are often issued together for restaurants
or taverns. A “Class C" license, which may be issued only for a restaurant, authorizes
the retail sale of wine for consumption on the premises.
Under current law, DOR issues permits to manufacturers (commonly referred
to as distillers), rectifiers, wineries, brewers, and brewpubs. DOR also issues
permits to beer wholesalers, intoxicating liquor wholesalers, out-of-state beer
shippers, and out-of-state intoxicating liquor shippers. Out-of-state shippers are
suppliers located outside this state that ship alcohol into this state. DOR also issues
direct wine shippers' permits to in-state and out-of-state wineries that authorize
the permittee to ship wine directly to individuals in this state. In addition, DOR
issues Class “B” and “Class B” retail permits under limited circumstances.
Division of Alcohol Beverages
The bill creates the division, attached to DOR, and transfers DOR's alcohol
beverage regulation and enforcement functions, including issuance of alcohol
beverage permits, to the division. The bill also creates within the division separate
bureaus dedicated to enforcement, legal services, and education and community
outreach. The administrator of the division may appoint special agents and other
employees necessary to carry out the permitting, audit, education, legal, and
enforcement functions of the division. The administrator and employees of the
division may not be employed by or have a financial interest in the alcohol beverage
industry and are subject to the standards of conduct and conflict of interest
prohibitions for state public officials.
Retail sales by brewers, wineries, manufacturers, and rectifiers
Under current law, a brewer's permit issued by DOR authorizes the brewer to,
among other activities, manufacture beer and, if the brewer manufactures 300,000
or fewer barrels of beer per year, self-distribute its beer directly to retailers. A
brewer's permit also authorizes the brewer to sell at retail, without a retail license,
at the brewery premises and at one off-site retail outlet 1) the brewer's own beer, for
consumption on or off the premises; 2) certain other Wisconsin-made beer, for
consumption on or off the premises, if the brewer purchases the beer from a
wholesaler or another brewer; and 3) intoxicating liquor, for consumption on the
premises, if the brewer held a retail intoxicating liquor license on June 1, 2011, and
if the brewer purchases the intoxicating liquor from a wholesaler. The brewer may
also provide free taste samples at the brewery premises and the brewer's off-site
retail outlet. A brewer may not hold a retail beer license. A brewer may not operate
a restaurant except at the brewery premises and the brewer's off-site retail outlet.
Under current law, a winery permit issued by DOR authorizes the winery to,
among other activities, manufacture wine and provide taste samples of its wine on
the winery premises. A winery may also hold one retail license—either a “Class A”
or “Class B” license—which may be issued for the winery premises or another
location, but the winery may not hold other specified retail interests. A “Class B”
license issued to a winery is limited compared to other “Class B” licenses because it
authorizes the retail sale of wine for consumption on or off the premises but does not
authorize the retail sale of distilled spirits. A “Class B” license may be issued to a
winery only if the winery is capable of producing at least 5,000 gallons of wine per
year in no more than two locations. If a retail license is issued to a winery, the winery
may provide wine made by the winery directly to its own retail premises, without the
wine first passing through a wholesaler.
Under current law, a manufacturer's permit or rectifier's permit issued by DOR
authorizes the permittee to, respectively, manufacture or rectify intoxicating liquor.
Current law prohibits a manufacturer or rectifier from holding an interest in a retail
liquor license, but a manufacturer's permit or rectifier's permit authorizes the
manufacturer or rectifier to make retail sales, without a retail license, of intoxicating
liquor manufactured or rectified on the manufacturer's or rectifier's premises, for
consumption on or off the premises. Subject to limitations, a manufacturer or
rectifier may also provide free taste samples of intoxicating liquor manufactured or
rectified on the premises, for consumption on the premises.
The bill eliminates most current law provisions relating to retail sales authority
for brewers, wineries, manufacturers, and rectifiers and replaces them with
provisions creating a more uniform standard of retail sales authority for these
producers. Under the bill, a brewer, winery, manufacturer, or rectifier (producer)
may, under its division-issued permit, make retail sales on the production premises
and establish full-service retail outlets depending on the producer's production
volume. The bill authorizes a producer to make retail sales of its own products on
the production premises, for on-premises or off-premises consumption. If the
producer meets specified production thresholds, the bill also allows the producer to
engage in full-service retail sales on the production premises and to establish from
one to three full-service retail outlets away from the production premises at which
full-service retail sales may be made. “Full-service retail sales" are sales of beer and
intoxicating liquor, for on-premises or off-premises consumption, and the provision
of taste samples. Alcohol beverages not produced by the producer must be purchased
from a wholesaler or other person authorized to distribute the alcohol beverages
under current law. To operate a full-service retail outlet, a producer must obtain
approval from the division, which the division must grant unless the producer has
violated a provision of law related to full-service retail outlets. In addition, a
producer may not commence sales of alcohol beverages at a full-service retail outlet
unless, prior to commencing such sales, the producer receives approval from the
municipality in which the retail outlet is located. Applications for a municipality's
approval must be made on a form prescribed by the division. A municipality's
approval must be based on the same standards and criteria that the municipality has
established by ordinance for the evaluation and approval of retail license
applications. A municipality may limit the scope of alcohol beverages offered for sale
at a full-service retail outlet only with respect to alcohol beverages that are not of
the same type as those produced by the producer. Retail sales on the production
premises and at full-service retail outlets must be supervised by the permit holder
or a person holding an operator's license or operator's permit (discussed further
below). A producer may operate a restaurant at any full-service retail outlet and on
the production premises.
Under the bill, if a brewer is not eligible to establish a full-service retail outlet,
the brewer maintains the current-law authorization to establish an off-site retail
outlet at which it may sell its own beer for on-premises or off-premises consumption.
In addition, if the brewer held a retail intoxicating liquor license on June 1, 2011, for
its brewery premises or an off-site retail outlet, the brewer may make retail sales of
intoxicating liquor for on-premises consumption at this formerly licensed location.
The bill eliminates the authorization for a winery to hold a retail license, which
authorization is replaced with the retail sales authority described above. The bill
also eliminates the prohibition against a brewer operating a restaurant in a location
other than the brewery premises and the brewer's off-site retail outlet.
Closing hours for retail sales by brewers, wineries, manufacturers, and
rectifiers
Under current law, with limited exceptions, a retailer operating under a Class
“B" or “Class B” license may not remain open between the hours of 2 a.m. and 6 a.m.
on weekdays or between 2:30 a.m. and 6 a.m. on Saturday and Sunday, and a
municipality may not impose different closing hours by ordinance. The hours during
which a Class “B” licensed retailer may make sales for off-premises consumption are
more limited, with these sales prohibited from midnight to 6 a.m., although a
municipality may, by ordinance, impose more restrictive hours for these sales.
Current law does not specify closing hours or permissible hours of sale for retail sales
by brewers, manufacturers, or rectifiers.
Under the bill, a full-service retail outlet of a producer is subject to the same
closing hours, and restrictions on the hours in which sales for off-premises
consumption may be made, that are applicable to a Class “B" licensee in the same
municipality with respect to all alcohol beverages sold at the retail outlet. These
limitations also apply to the producer's production premises, except that the
production premises are not required to be closed for nonretail activities. The bill
also specifies that no member of the public or invited guests may be present on the
production premises during the closing hours applicable to a Class “B" licensee.
Under current law, a winery operating under a “Class B" license may not
remain open for retail sales of wine between the hours of 9 p.m. and 8 a.m.
The bill eliminates this earlier closing hour for a winery.
Other authorized activities of brewers, wineries, manufacturers, and
rectifiers
Under the bill, the permit of a brewer, winery, manufacturer, or rectifier also
authorizes the following activities:
1. The transportation by the producer of its alcohol beverages between the
production premises and any depot, warehouse, or full-service retail outlet
maintained by the producer or other premises for which the producer holds a permit.
2. The sale, shipment, transportation, and delivery, or the sale or transfer, of
the producer's alcohol beverages, in bulk or in any state of packaging, to another
producer holding a permit that allows production of the same type of alcohol
beverages.
Producers providing taste samples on retail premises
Current law allows Class “A” and “Class A” licensees to provide free taste
samples to customers for consumption on the licensed premises, subject to various
restrictions such as the size and number of taste samples and hours during which
they may be provided. As part of their retail sales authority, Class “B,” “
Class B,” and
“Class C” licensees may also provide taste samples for consumption on the premises.
Under current law, a brewer may provide free taste samples on Class “A”
licensed premises for consumption on the premises, subject to the same limitations
applicable to the Class “A” licensee in providing taste samples, including hours and
size and number of samples. In addition, the brewer must purchase from the Class
“A” licensee the beer that the brewer provides as taste samples.
The bill creates additional authority, and modifies existing authority, for a
brewer, winery, manufacturer, or rectifier to provide taste samples on retail licensed
premises with the consent of the retail licensee. Under the bill, a winery,
manufacturer, or rectifier may provide free taste samples of intoxicating liquor on
“Class A,” “Class B,” or “Class C” premises, not exceeding two 3-ounce samples of
wine per day per person and one 0.5-ounce sample of distilled spirits per day per
person. A brewer may provide free taste samples of beer on Class “A" or Class “B”
premises, not exceeding two 3-ounce samples of beer per day per person. A brewer,
winery, manufacturer, or rectifier may provide the taste samples to any person who
has attained the legal drinking age for consumption on the premises between the
hours of 11 a.m. and 7 p.m. The taste samples must be either 1) purchased by the
brewer, winery, manufacturer, or rectifier from the retail licensee or 2) produced by
the brewer, winery, manufacturer, or rectifier and brought to the retail premises.
However, a brewer, winery, manufacturer, or rectifier may not leave at the retail
premises any unused alcohol beverages not purchased from the retail licensee.
The bill also eliminates a provision under which a municipality may prohibit
a “Class A” licensee from offering free taste samples of wine on its licensed premises.
Brewpubs
Under current law, a person is eligible for a brewpub permit issued by DOR if
the person meets certain requirements, including that 1) the person manufactures
not more than 10,000 barrels of beer per year and 2) the person operates on the
brewpub premises a restaurant for which a retail license is issued and in which the
brewpub sells, in addition to its own beer, the beer of another brewer. A brewpub
permit authorizes, among other activities, 1) the manufacture of up to 10,000 barrels
of beer per year, but the entire manufacturing process must occur on brewpub
premises; 2) the retail sale of alcohol beverages through retail licenses issued for the
brewpub's restaurant; and 3) the annual distribution of up to 1,000 barrels of the
brewpub's beer to retailers.
The bill increases, from 10,000 to 20,000 barrels per year, the amount of beer
that a brewpub may manufacture and eliminates the requirement that the entire
manufacturing process occur on brewpub premises. The bill also authorizes a
brewpub to annually distribute up to 2,000 barrels of the brewpub's beer to retailers.
Also under the bill, to meet the requirement that it sell beer other than its own in its
restaurant, a brewpub may sell beer manufactured by another brewpub rather than
a brewer.
The bill also authorizes a brewpub to sell, ship, transport, and deliver, in bulk
or in any state of packaging, beer manufactured by the brewpub to another brewpub.
Interest restrictions
Current law imposes restrictions on the issuance of alcohol beverage licenses
and permits and the interests that such licensees or permittees may hold in other
licensees or permittees. For example, a Class “B" license may not be issued to a
brewer or a beer wholesaler, and a beer wholesaler's permit may not be issued to a
brewer or Class “B" licensee. As another example, a manufacturer, rectifier, or
winery may not hold any direct or indirect interest in any wholesale permit or
establishment. Current law includes many similar provisions, which generally
prohibit one type of licensee or permittee from having a direct or indirect interest in
specified other types of licensees or permittees. DOR has promulgated a rule used
to implement some of these statutory interest restrictions, which include definitions
and examples of direct and indirect interests.
The bill modifies these existing interest restriction provisions. In general, the
bill expands these provisions to explicitly apply to “cross-tier” interests, such as a
beer wholesaler's interest in a winery permit or a winery's interest in a retail beer
license. The bill also standardizes language among the various interest restriction
provisions, partly by adopting the phrase “an interest in” rather than “a direct or
indirect interest in” or “a direct or indirect ownership interest in” and partly by
explicitly stating whether the interest restriction applies to retail licensees, retail
permittees, beer wholesalers, liquor wholesalers, brewers, brewpubs, wineries,
manufacturers and rectifiers, out-of-state beer shippers, and out-of-state liquor
shippers. The bill also incorporates the new interest restriction exceptions discussed
below. The bill further repeals the DOR rule that guides determinations relating to
interest restrictions.
In addition to these changes to existing interest restriction provisions, the bill
creates new provisions relating to interest restrictions and creates exceptions to
interest restrictions. The bill specifies all of the following:
1. No production permittee may hold any interest in any distribution permittee
or in any retail licensee or permittee, except as authorized under current law for a
brewpub.
2. No distribution permittee may hold any interest in any retail licensee or
permittee or any interest in any production permittee, with an exception for a beer
wholesaler holding an interest in a brewer on July 1, 2011.
3. No retail licensee or permittee may hold any interest in any distribution
permittee or in any production permittee, except as authorized under current law for
a brewpub.
For purposes of these provisions, employment in a nonmanagerial capacity for
an alcohol beverage licensee or permittee is not an interest in that licensee or
permittee.
The bill defines a “production permittee” as a person holding a permit issued
to a brewer, brewpub, manufacturer, rectifier, or winery; a brewer in another state
that holds an out-of-state beer shipper's permit; a manufacturer, rectifier, or winery
in another state that holds an out-of-state liquor shipper's permit; or a restricted
individual of any such person. A “restricted individual” is an individual who 1) is
identified on a manager's license or who works or acts in a managerial capacity for
an alcohol beverage permittee or licensee; 2) serves as an officer, director, member,
manager, or agent of a corporation or limited liability company that holds an alcohol
beverage permit or license; or 3) holds more than a 10 percent ownership interest in
an alcohol beverage permittee or licensee. The bill defines a “distribution permittee"
as a person holding a beer or liquor wholesaler's permit or a restricted individual of
such a person. The bill defines a “retail licensee or permittee" as a person holding
a Class “A," Class “B,” “Class A," “Class B," or “Class C" license, a Class “B" or “Class
B" permit, or a no-sale event venue permit (discussed further below), or a restricted
individual of any such person. The bill also defines a “restricted entity" as an entity
holding more than a 10 percent ownership interest in an alcohol beverage permittee
or licensee. The bill defines a “restricted investor" as a restricted individual or
restricted entity.
The bill also specifies the following three situations, applicable to both new and
existing interest restriction provisions under the bill, in which interests are
explicitly authorized:
1. An alcohol beverage licensee or permittee may be owned in part by, or grant
an ownership interest to, a restricted investor in a different tier if specified
requirements are satisfied, including that no restricted investor holds more than a
10 percent ownership interest or is involved in day-to-day operations and the
aggregate amount of ownership held by all restricted investors does not exceed 49
percent. Each restricted investor must execute an affidavit swearing to a lack of
involvement in the day-to-day operations of the licensee or permittee. A restricted
investor who materially violates a representation in the affidavit may be required
to forfeit not more than $1,000.
2. An alcohol beverage licensee or permittee, or a restricted individual of a
licensee or permittee, may enter into a landlordtenant relationship with another
licensee or permittee operating in a different tier if specified requirements are
satisfied, including that the landlord has no control over or day-to-day involvement
in the business of the tenant.
3. A spouse may have an interest in the alcohol beverage license or permit of
the other spouse if specified requirements are satisfied, including that the marriage
is governed by a marital property agreement or prenuptial agreement and both
spouses execute an affidavit swearing to a lack of involvement in the day-to-day
operations of each respective business. A spouse who materially violates a
representation in the affidavit may be required to forfeit not more than $1,000.
As discussed above, the bill also eliminates the authority of a winery to hold a
retail license and provisions allowing this common interest.
Tied house restrictions
Current law prohibits a brewer, brewpub, or beer wholesaler from furnishing
anything of value to a Class “B” licensee, but there are numerous exceptions to this
prohibition.
The bill creates an exception under which a brewer, brewpub, or beer
wholesaler may enter into a landlordtenant relationship with a Class “B” licensee
if the same requirements are satisfied that are referenced in item 2, above, relating
to interest restrictions and landlord-tenant relationships.
Production agreements
The bill specifies authority for a brewer, brewpub, winery, manufacturer, or
rectifier (producer) to produce alcohol beverages by means of contract production,
alternating proprietorship, or licensing agreement and further specifies certain
requirements for and consequences of such an arrangement. These arrangements
must be established by written agreement, which generally may be entered into only
by producers holding the same type of producer's permit.
The bill defines “contract production" as a contract, agreement, or business
arrangement whereby a recipe producer or out-of-state recipe supplier provides
consideration to a contract producer for the production, bottling, or labeling of
alcohol beverages. In a contract production arrangement, the “contract producer”
manufactures, bottles, or labels the alcohol beverages, which are purchased from the
contract producer by the “recipe producer” or “out-of-state recipe supplier.” A recipe
producer, with an exception, holds the same type of Wisconsin permit as the contract
producer, while an out-of-state recipe supplier is a person located in another state
that produces alcohol beverages in that state.
The bill specifies that alcohol beverages produced under a contract production
arrangement between a contract producer and recipe producer count toward the
production volume of the recipe producer, except they may not be considered for
purposes of determining a producer's retail sales authority (discussed above). The
recipe producer is considered the producer for purposes of taxation and reporting to
the division.
The bill defines an “alternating proprietorship" as an arrangement in which a
host producer provides use of space and equipment, and may additionally provide
personnel, to a guest producer for the production of alcohol beverages. In this
arrangement, a “host producer” provides its production facility to a “guest producer”
for the guest producer to use to produce the guest producer's alcohol beverages. The
bill specifies that alcohol beverages produced under an alternating proprietorship
count toward the production volume of the guest producer, and the guest producer
is considered the producer for purposes of taxation and reporting to the division.
The bill defines a “licensing agreement" as an agreement between a licensor
and a producer for the production of alcohol beverages containing the name, symbol,
or mark of the licensor. A producer may enter into a written licensing agreement
with a licensor authorizing the producer-licensee to use the licensor's trademark or
name if the producer-licensee is entirely responsible for producing the alcohol
beverages and for all related processing steps and regulatory requirements.
The bill also specifies that a producer entering into a contract production
arrangement, alternating proprietorship arrangement, or licensing agreement does
not act as an agent for or in the employ of another with respect to certain provisions
of current law.
Common carrier shipments
The bill prohibits a common carrier from transporting or delivering alcohol
beverages into or within this state, other than to an alcohol beverage licensee or
permittee, unless the common carrier first obtains a permit from the division. This
permit authorizes a common carrier only to transport or deliver into or within this
state wine on behalf of a person holding a Wisconsin direct wine shipper's permit,
which generally may be an in-state or out-of-state winery, or on behalf of a person
holding a fulfillment house permit (discussed below). A common carrier must pay
an annual permit fee of $1,000. A common carrier that fails to obtain a permit prior
to commencing delivery of alcohol beverages in this state is subject to a fine of not
more than $10,000. A common carrier that ships alcohol beverages other than wine
obtained from a direct wine shipper permittee or fulfillment house permittee is
subject to a forfeiture of not more than $2,000, and the division must revoke the
common carrier's permit if the common carrier violates this prohibition in more than
one month during a calendar year.
The bill also requires a common carrier that holds a common carrier permit to
submit a monthly report to the division that includes all of the following information
for each shipment of alcohol beverages during the preceding month: 1) the name and
address of the manufacturer of the alcohol beverages; 2) the name and address of the
consignor of the shipment, if different from the manufacturer; 3) the name and
address of the consignee of the shipment; 4) the date of the shipment; 5) the type and
quantity of alcohol beverages shipped to the consignee, as reported to the common
carrier; and 6) the parcel tracking number for the shipment. The division must keep
confidential the name and address of the consignee and the parcel tracking number,
but other information in the reports is not confidential and is subject to the public
records law. A common carrier required to submit reports under the bill must
maintain for three years all records related to the reports. A common carrier that
fails to submit a required report is subject to a forfeiture of not more than $2,000.
Fulfillment houses and direct wine shipping
Under current law, DOR may issue a direct wine shipper's permit to any person
that manufactures and bottles wine on premises covered by a winery permit,
manufacturer's permit, or rectifier's permit issued by DOR; a winery license issued
by another state; or a federal winery permit. A direct wine shipper's permit issued
by DOR authorizes the permittee to ship wine directly to an individual in this state
who is of the legal drinking age, who acknowledges receipt of the wine shipped, and
who is not intoxicated at the time of delivery.
Current law, with limited exceptions, prohibits a person from shipping alcohol
beverages into this state unless the person holds an out-of-state shipper's permit
issued by DOR and the alcohol beverages are shipped to an in-state wholesaler.
However, one exception allows an out-of-state winery to ship wine directly to a
consumer in this state if the winery holds a direct wine shipper's permit.
The bill requires a person operating a fulfillment house to obtain from the
division a fulfillment house permit for each location that is involved in the process
of shipping wine to Wisconsin residents. A “fulfillment house" is defined as any
entity, whether located in this state or elsewhere, that handles logistics, including
warehousing, packaging, order fulfillment, or shipping services, on behalf of a direct
wine shipper permittee for wine that is eligible to be shipped to individuals in this
state. A person holding a fulfillment house permit may provide services only for the
warehousing, packaging, order fulfillment, and shipment of alcohol beverages
produced by and belonging to a direct wine shipper permittee.
Under the bill, a fulfillment house permittee must ensure that all containers
of wine shipped directly to an individual in this state are labeled with all of the
following information: 1) the words “CONTAINS ALCOHOL: SIGNATURE OF
PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY"; 2) the name, address,
and permit number of the fulfillment house permittee; and 3) the name, address, and
permit number of the direct wine shipper permittee on whose behalf the wine is
shipped.
The bill prohibits a fulfillment house permittee from shipping into this state
wine from any person not holding a direct wine shipper's permit. A fulfillment house
permittee may ship wine into this state only by using a common carrier that holds
a common carrier permit issued by the division. Prior to shipping wine to an
individual in this state, a fulfillment house permittee must verify the validity of the
direct wine shipper's permit and common carrier permit associated with the
direct-to-consumer shipment. A fulfillment house that fails to obtain a required
fulfillment house permit is subject to a fine of not more than $10,000. A fulfillment
house that ships alcohol beverages other than wine obtained from a direct wine
shipper permittee is subject to a forfeiture of not more than $2,000. The division
must revoke the permit of a fulfillment house that violates this prohibition in more
than one month during a calendar year.
The bill requires a fulfillment house permittee to submit a monthly report to
the division that includes all of the following information for each shipment of alcohol
beverages during the preceding month: 1) the name and address of the manufacturer
of the alcohol beverages; 2) the name and address of the consignor of the shipment,
if different from the manufacturer; 3) the name and address of the consignee of the
shipment; 4) the date of the shipment; 5) the type and quantity of alcohol beverages
shipped to the consignee; and 6) the parcel tracking number for the shipment. The
division must keep confidential the name and address of the consignee and the parcel
tracking number, but other information in the reports is not confidential and is
subject to the public records law. A fulfillment house required to submit reports
under the bill must maintain for three years all records related to the reports. A
fulfillment house that fails to submit a required report is subject to a forfeiture of not
more than $2,000.
The bill allows a direct wine shipper permittee (including a Wisconsin winery
holding such a permit) to arrange with a fulfillment house to ship wine on the direct
wine shipper permittee's behalf only if the fulfillment house holds a fulfillment house
permit. The bill also requires a direct wine shipper permittee to use a common
carrier holding a common carrier permit in shipping any container of wine directly
to an individual in this state.
The bill also creates a fulfillment house exception to the current law provision
that generally prohibits any person from shipping alcohol beverages into this state
unless the person holds an out-of-state shipper's permit issued by DOR and the
alcohol beverages are shipped to an in-state wholesaler.
The bill also specifies that a direct wine shipper permittee may ship directly to
an individual in this state only wine manufactured or bottled by the permittee.
Jurisdiction over out-of-state permittees; violation of another state's law
Current law provides for the issuance of the following alcohol beverage permits
to persons located outside this state: 1) an out-of-state beer shipper's permit; 2) an
out-of-state liquor shipper's permit; and 3) a direct wine shipper's permit. Subject
to various restrictions, an out-of-state beer shipper's permit authorizes a person
located outside this state to ship beer into this state to a person holding a beer
wholesaler's permit. An out-of-state liquor shipper's permit, subject to various
restrictions, authorizes a person located outside this state to ship intoxicating liquor
into this state to a person holding a liquor wholesaler's permit, a manufacturer's or
rectifier's permit, or a winery permit. As discussed more fully above, a direct wine
shipper's permit authorizes direct-to-consumer wine shipments from in-state or
out-of-state wineries to individuals in this state.
The bill requires holders of out-of-state beer shippers' permits, out-of-state
liquor shippers' permits, and direct wine shippers' permits who are located outside
of this state to consent to jurisdiction in this state for proceedings to enforce this
state's alcohol beverage laws. These permittees must also accept service of process
for proceedings in this state to enforce this state's alcohol beverage laws. To this end,
these permittees must satisfy specified requirements relating to appointing and
maintaining in this state an agent for service of process. The bill also includes other
provisions relating to requirements imposed on these permittees.
The bill also authorizes the division to revoke or suspend an alcohol beverage
license or permit if the licensee or permittee ships alcohol beverages into another
state in violation of that state's law.
Consumption of alcohol beverages in a public place
Under current law, an owner or other person in charge of a public place may not
permit the consumption of alcohol beverages on the premises of the public place
unless the person has an appropriate retail license. Current law does not define
“public place” for purposes of this provision, but current law defines “premises” as
the area described in an alcohol beverage license or permit. There are various
exceptions to this prohibition, including for county parks, athletic fields and
stadiums, and churches, and also for municipalities and clubs.
The bill specifies that, for purposes of this prohibition, a “public place” includes
a venue, location, open space, room, or establishment that is 1) accessible and
available to the public to rent for an event or social gathering; 2) held out for rent to
the public for an event or social gathering; or 3) made available for rent to a member
of the public for an event or social gathering. However, a public place does not include
any of the following: 1) a room in a hotel, motel, or bed and breakfast that is used
for overnight accommodations; 2) vacation rental property, or other property of
temporary lodging, that is used for overnight accommodations if the property is
furnished with sufficient beds for all adult guests to sleep; 3) a campsite on a
campground; 4) a parking lot, driveway, or yard where vehicles may be parked on the
same day as a professional or collegiate sporting event or other ticketed event open
to the public; or 5) property within a local professional football stadium or baseball
park district if the property is used in connection with, and on the same day as, a
professional football or baseball game, or other ticketed event open to the public, held
at the football stadium or baseball park.
The bill also allows an owner or other person in charge of a public place to
permit the consumption of alcohol beverages if the person has obtained a no-sale
event venue permit issued by the division (discussed below). The bill further clarifies
that the public place prohibition discussed above applies on all property, not just on
licensed premises.
No-sale event venue permit
The bill creates a no-sale event venue permit issued by the division to property
owners authorizing the permittee to rent or lease real property for use as an event
venue at which beer and wine are consumed on no more than six days per year and
one day per month. A permittee may not sell or otherwise provide alcohol beverages
to the renter or lessee of the event venue or a guest or attendee of the event, nor may
the permittee allow any person to possess distilled spirits on the event venue when
the event venue is being used by a renter or lessee. Subject to certain restrictions,
a no-sale event venue permit authorizes the permittee to do any of the following: 1)
allow the renter or lessee of the event venue to bring the renter's or lessee's own beer
and wine onto the event venue and serve it to guests without charge; 2) allow the
guests of the renter or lessee to bring beer and wine onto the event venue to be
consumed by the guests without charge; 3) allow the renter or lessee to obtain
temporary Class “B” and “Class B” licenses for an event held on the event venue and
sell beer and wine under the temporary licenses on the event venue; or 4) allow the
renter or lessee to contract with a licensed caterer for the caterer to provide beer and
wine to the renter or lessee and guests without charge on the event venue. If the
renter or lessee contracts with a caterer, the renter or lessee and guests may not bring
alcohol beverages onto the event venue. The renter or lessee must first purchase the
beer and wine in a face-to-face transaction on the caterer's retail licensed premises.
The caterer may then deliver and serve the alcohol beverages at the event venue, but
service must be performed by licensed bartenders.
