Amendment ASA1-AB40

AB40-ASA1, s. 2602 Section 2602. 121.91 (7) of the statutes is amended to read:

AB40-ASA1,1063,7 121.91 (7) Except as provided in sub. (4) (f) 2. and (L) to, (o), and (8) (q), if an excess revenue is approved under sub. (3) for a recurring purpose or allowed under sub. (4), the excess revenue shall be included in the base for determining the limit for the next school year for purposes of this section. If an excess revenue is approved under sub. (3) for a nonrecurring purpose, the excess revenue shall not be included in the base for determining the limit for the next school year for purposes of this section.

AB40-ASA1, s. 2603 Section 2603. 121.91 (8) of the statutes is repealed.

AB40-ASA1, s. 2603m Section 2603m. 125.01 of the statutes is amended to read:

AB40-ASA1,1063,23 125.01 Legislative intent. This chapter shall be construed as an enactment of the legislature's support for the 3-tier system for alcohol beverages production, distribution, and sale that, through uniform statewide regulation, provides this state regulatory authority over the production, storage, distribution, transportation, sale, and consumption of alcohol beverages by and to its citizens, for the benefit of the public health and welfare and this state's economic stability. Without the 3-tier system, the effective statewide regulation and collection of state taxes on alcohol beverages sales would be seriously jeopardized. It is further the intent of the legislature that without a specific statutory exception, all sales of alcohol beverages shall occur through the 3-tier system, from manufacturers to licensed wholesalers holding a permit to retailers to consumers. Face-to-face retail sales at licensed premises directly advance the state's interest in preventing alcohol sales to underage or intoxicated persons and the state's interest in efficient and effective collection of tax.

AB40-ASA1, s. 2604bc Section 2604bc. 125.02 (15) of the statutes is renumbered 125.02 (15) (intro.) and amended to read:

AB40-ASA1,1064,1 125.02 (15) (intro.) "Primary source of supply" means any of the following:

AB40-ASA1,1064,3 (b) With respect to intoxicating liquor, the manufacturer, the rectifier, or the exclusive agent designated by the manufacturer or rectifier.

AB40-ASA1, s. 2604be Section 2604be. 125.02 (15) (a) of the statutes is created to read:

AB40-ASA1,1064,7 125.02 (15) (a) With respect to fermented malt beverages, the brewer or brewpub that manufactured the fermented malt beverages or the exclusive agent designated by this brewer or brewpub.

AB40-ASA1, s. 2604bg Section 2604bg. 125.02 (21) of the statutes is amended to read:

AB40-ASA1,1064,11 125.02 (21) "Wholesaler" means a person, other than a brewer, brewpub, manufacturer, or rectifier, who sells alcohol beverages to a licensed retailer or to another person who holds a permit or license to sell alcohol beverages at wholesale.

AB40-ASA1, s. 2604bi Section 2604bi. 125.04 (12) (a) of the statutes is amended to read:

AB40-ASA1,1065,3 125.04 (12) (a) From place to place. Every alcohol beverage license or permit may be transferred to another place or premises within the same municipality. An alcohol beverage warehouse permit under s. 125.19, a winery permit under s. 125.53 or an intoxicating liquor wholesaler's permit under s. 125.54 may be transferred to another premises within this state. A Class "A" license and a wholesaler's license identified in s. 125.25 (2) (b) 2. may be transferred together as provided in s. 125.25 (2) (b) 4. if the receiving municipality approves the transfer. Transfers shall be made by the issuing authority upon payment of a fee of $10 to the issuing authority and, for transfers as provided in s. 125.25 (2) (b) 4., transfers shall be received and the validity of the transferred licenses recognized by the receiving municipality upon approval of the transfer by the receiving municipality and payment to the receiving municipality of an additional fee of $10 for each transferred license. No retail licensee, retail permittee, intoxicating liquor wholesaler or holder of a warehouse or winery permit is entitled to more than one transfer during the license or permit year. This paragraph does not apply to a license issued under s. 125.51 (4) (v) or to a reserve "Class B" license, as defined in s. 125.51 (4) (a).

AB40-ASA1, s. 2604bk Section 2604bk. 125.05 (1) (d) of the statutes is amended to read:

AB40-ASA1,1065,10 125.05 (1) (d) Wholesalers' licenses permits. If the election results prohibit the retail sale of fermented malt beverages, the municipality may nevertheless issue wholesalers' licenses to qualified persons on the department shall include as a condition of any wholesaler's permit issued under s. 125.28 for a premises within the municipality that the wholesaler may not sell or deliver fermented malt beverages within the municipality to any person residing therein.

AB40-ASA1, s. 2604bL Section 2604bL. 125.07 (3) (a) 3. of the statutes is amended to read:

AB40-ASA1,1065,18 125.07 (3) (a) 3. Hotels, drug stores, grocery stores, bowling centers, movie theaters, billiards centers having on the premises 12 or more billiards tables that are not designed for coin operation and that are 8 feet or longer in length, indoor golf simulator facilities, service stations, vessels, cars operated by any railroad, regularly established athletic fields, outdoor volleyball courts that are contiguous to a licensed premises, stadiums, public facilities as defined in s. 125.51 (5) (b) 1. d. which are owned by a county or municipality or centers for the visual or performing arts.

AB40-ASA1, s. 2604bm Section 2604bm. 125.07 (3) (a) 13. of the statutes is amended to read:

AB40-ASA1,1065,22 125.07 (3) (a) 13. An underage person who enters or remains in a banquet or hospitality room on brewery premises operated under a Class "B" or "Class B" license for the purpose of attending a brewery tour.

AB40-ASA1, s. 2604bo Section 2604bo. 125.10 (4) of the statutes is amended to read:

AB40-ASA1,1066,6 125.10 (4) Regulation of closed retail premises. A municipality may not prohibit the permittee, licensee, employees, salespersons, employees of wholesalers licensed issued a permit under s. 125.28 (1) or 125.54 (1); employees of permittees under s. 125.295 with respect to the permittee's own retail premises; or service personnel from being present on premises operated under a Class "A", "Class A" or "Class C" license or under a Class "B" or "Class B" license or permit during hours when the premises are not open for business if those persons are performing job-related activities.

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

AB40-ASA1,1066,22 125.25 (1) Every municipal governing body may issue Class "A" licenses for the sale of fermented malt beverages from premises within the municipality. Subject to s. 125.34 (5) and (6), a A Class "A" license authorizes retail sales of fermented malt beverages for consumption off the premises where sold and in original packages, containers, and bottles. A Class "A" license also authorizes the licensee to provide, free of charge, to customers and visitors who have attained the legal drinking age fermented malt beverages taste samples that are not in original packages, containers, or bottles and that do not exceed 3 fluid ounces each, for consumption on the Class "A" premises. No Class "A" licensee may provide more than 2 taste samples per day to any one person. Taste samples may be provided under this subsection only between the hours of 11 a.m. and 7 p.m. Any other provision of this chapter applicable to retail sales of fermented malt beverages by a Class "A" licensee also applies to the provision of taste samples, free of charge, of fermented malt beverages by a Class "A" licensee. A license may be issued after July 1. That license shall expire on the following June 30.

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.