Amendment SA2-SB268

SB268-SA2,26fs Section 26fs. 125.53 (1) of the statutes is renumbered 125.53 (1) (a) (intro.) and amended to read:

SB268-SA2,96,12 125.53 (1) (a) (intro.) The department division shall issue only to a manufacturing winery in this state that holds a valid certificate issued under s. 73.03 (50) a winery permit authorizing the permittee to engage in the following activities:

SB268-SA2,96,15 1. The manufacture and bottling of wine on the premises covered by the permit for sale, in original unopened packages or containers, to wholesalers holding a permit under s. 125.54. A winery permit also authorizes the permittee to, on

SB268-SA2,96,21 2. On the winery premises and without obtaining a rectifier's permit, possess possessing intoxicating liquor and mix or blend mixing or blending intoxicating liquor to produce wine sold to wholesalers holding a permit under s. 125.54. A winery holding a permit under this section may offer on the premises, manufacturers or rectifiers holding a permit under s. 125.52, and wineries holding a permit under this section.

SB268-SA2,97,7 7. The provision of free taste samples of wine manufactured on the premises to persons who have attained the legal drinking age. A permittee under this section may also have either one “Class A" license or one “Class B" license, but not both. The “Class A" license or “Class B" license may either be issued for the winery premises or for real estate owned or leased by the winery. If a “Class A" or “Class B" liquor license has also been issued to the winery, the winery may provide wine manufactured, mixed, or blended on the winery premises directly to the “Class A" or “Class B" premises and may offer the taste samples on the “Class A" or “Class B" premises on the winery premises or at the winery's full-service retail outlet if the taste samples are of alcohol beverages the winery is authorized to sell under sub. (3) (c), or as authorized under s. 125.69 (9).

SB268-SA2,97,11 (b) A winery holding a permit under this section may also make retail sales of wine, and provide taste samples of wine, on county or district fair fairgrounds as provided in s. 125.51 (10), but this wine sold at retail or provided as taste samples shall be purchased from a wholesaler holding a permit under s. 125.54.

SB268-SA2,26ft Section 26ft. 125.53 (1) (a) 3., 4., 5. and 6. of the statutes are created to read:

SB268-SA2,97,15 125.53 (1) (a) 3. The sale or transfer, in bulk or in any state of packaging, of wine to wineries holding a permit under this section and to manufacturers and rectifiers holding a permit under s. 125.52, from the winery premises.

SB268-SA2,97,19 4. The sale, shipment, transportation, and delivery of wine, in bulk or in any state of packaging, that has been manufactured by the winery to another winery holding a permit under this section or a manufacturer or rectifier holding a permit under s. 125.52.

SB268-SA2,97,23 5. The receipt of intoxicating liquor from another winery holding a permit under this section or a manufacturer or rectifier holding a permit under s. 125.52, in bulk or in any state of packaging, for purposes of further manufacturing, bottling, or storage.

SB268-SA2,98,3 6. The transportation of wine between the winery premises and any depot, warehouse, or full-service retail outlet maintained by the winery or other premises for which the winery holds a permit under this chapter.

SB268-SA2,26fu Section 26fu. 125.53 (3) and (4) of the statutes are created to read:

SB268-SA2,98,8 125.53 (3) (a) 1. Notwithstanding ss. 125.04 (9) and 125.09 (1), and subject to subd. 3., a winery may make retail sales, on the winery premises, of wine that has been manufactured or bottled by the winery on the winery premises or on other premises of the winery, for on-premises or off-premises consumption.

SB268-SA2,98,13 2. Notwithstanding ss. 125.04 (9) and 125.09 (1), and subject to subd. 3., if a winery manufactured or bottled, on all winery premises operated by the winery in this state, a cumulative total of at least 1,000 gallons of wine in any one of the 3 preceding calendar years, the winery may engage in full-service retail sales on the winery premises.

SB268-SA2,98,18 3. If a winery held a “Class B” license immediately preceding the effective date of this subdivision .... [LRB inserts date], for a location other than the winery premises, that location shall be considered the winery premises for purposes of the retail sales authorization under subds. 1. and 2. and that location shall be in addition to any retail sales locations authorized under par. (b).

SB268-SA2,99,2 (b) Notwithstanding ss. 125.04 (9) and 125.09 (1), and subject to pars. (d) and (g), if a winery manufactured or bottled, on all winery premises operated by the winery in this state, a cumulative total of at least 1,000 gallons of wine in any one of the 3 preceding calendar years, the winery may engage in full-service retail sales at off-site locations identified in the winery permit. Subject to pars. (f) and (g), the number of retail sales locations a winery is allowed in addition to the winery premises is determined by the cumulative volume of wine the winery manufactured or bottled on all winery premises operated by the winery in this state in any one of the 3 preceding calendar years, as follows:

SB268-SA2,99,5 1. If the winery's cumulative volume in a year was at least 1,000 gallons of wine but less than 5,000 gallons of wine, the winery may establish one full-service retail outlet.

SB268-SA2,99,8 2. If the winery's cumulative volume in a year was at least 5,000 gallons of wine but less than 25,000 gallons of wine, the winery may establish not more than 2 full-service retail outlets.

SB268-SA2,99,10 3. If the winery's cumulative volume in a year was at least 25,000 gallons of wine, the winery may establish not more than 3 full-service retail outlets.

SB268-SA2,99,17 (c) 1. Except as provided in subd. 2. and par. (f), a winery may make full-service retail sales of alcohol beverages on the winery premises and at any of its full-service retail outlets only if the alcohol beverages were purchased by the winery from a wholesaler holding a permit under s. 125.28 or 125.54, from a brewer authorized to make sales to retailers under s. 125.29 (3m), from a brewpub authorized to make sales to retailers under s. 125.295 (1) (g), or from a permittee under s. 125.30 authorized to make sales to retailers under s. 125.30 (4).

SB268-SA2,99,20 2. A winery is not required to purchase from another permittee wine manufactured or bottled by the winery that the winery sells at retail on the winery premises or at a full-service retail outlet of the winery.

SB268-SA2,99,23 3. Subject to subd. 2. and par. (f), a winery engaged in full-service retail sales on winery premises or at a full-service retail outlet of the winery is subject to ss. 125.33 (9) and 125.69 (6) to the same extent as if the winery were a retail licensee.

SB268-SA2,99,25 (d) 1. A winery may not commence sales of alcohol beverages at a full-service retail outlet unless, prior to commencing such sales, the winery receives approval from the municipality in which the full-service retail outlet is located and from the division as provided in par. (g).

SB268-SA2,100,9 2. Subject to par. (f), 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 person holding the winery permit. A municipality may not limit the sale, at a full-service retail outlet, of alcohol beverages produced by the person holding the winery permit. If a municipality limits the scope of alcohol beverages offered for sale, the provision of taste samples is limited to those alcohol beverages authorized to be sold.

SB268-SA2,100,14 3. Except as provided in subd. 2., a municipality's approval under subd. 1. shall 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 not impose any requirement or restriction in connection with the approval under subd. 1. that the municipality does not impose on retail licensees.

SB268-SA2,100,16 (e) 1. A winery may operate a restaurant at any full-service retail outlet under this subsection and on the winery premises.

SB268-SA2,100,20 2. If the winery operates a restaurant as provided in subd. 1., the winery may make retail sales of wine in an opened original bottle, in a quantity not to exceed one bottle, for consumption both at the restaurant and away from the restaurant if all of the following apply:

SB268-SA2,100,21 a. The purchaser of the wine orders food to be consumed at the restaurant.

SB268-SA2,100,23 b. The winery provides a dated receipt that identifies the purchase of the food and the bottle of wine.

SB268-SA2,101,4 c. Prior to the opened, partially consumed bottle of wine being taken away from the restaurant, the winery securely reinserts the cork into the bottle to the point where the top of the cork is even with the top of the bottle, or securely reattaches the original cap to the bottle, and the cork is reinserted or the cap is reattached at a time other than during the hours in which the winery is prohibited under sub. (4) (b) from making retail sales for off-premises consumption.

SB268-SA2,101,15 (f) 1. If a winery may establish one or more full-service retail outlets under pars. (b) and (g) and the winery also holds a manufacturer's or rectifier's permit or brewer's permit or both and, as such, may establish full-service retail outlets under s. 125.29 (7) (b) and (g) or 125.52 (4) (b) and (g), the aggregate number of full-service retail outlets that may be established is the maximum number authorized under par. (b), under s. 125.29 (7) (b), or under s. 125.52 (4) (b), whichever is greatest, but not exceeding 3 full-service retail outlets. Under these circumstances, each authorized full-service retail outlet shall serve as the full-service retail outlet associated with each applicable permit, regardless of whether the permittee would otherwise be entitled to fewer full-service retail outlets when calculated under par. (b) or s. 125.29 (7) (b) or 125.52 (4) (b).

SB268-SA2,101,24 2. If a winery may engage in full-service retail sales on the winery premises as provided in par. (a) 2. and the winery also holds a brewer's permit or manufacturer's or rectifier's permit or both, the winery may make retail sales on the winery premises of fermented malt beverages produced under its brewer's permit or intoxicating liquor produced under its manufacturer's or rectifier's permit without first purchasing the fermented malt beverages or intoxicating liquor from a wholesaler holding a permit under s. 125.28 or 125.54 or receiving the fermented malt beverages under authorization of s. 125.29 (3m) (b), 125.295 (1) (g), or 125.30 (4).

SB268-SA2,102,4 3. If a person holds more than one winery permit under this section, the retail sales authority under this subsection for winery premises applies with respect to each winery permit, but the limit on full-service retail outlets is an aggregate maximum, regardless of the number of winery permits held.

SB268-SA2,102,7 (g) 1. An application for a winery permit, including an application for an amendment to the winery permit, shall specify each full-service retail outlet of the winery and particularly describe the premises of the full-service retail outlet.

SB268-SA2,102,14 2. The division shall establish a process for approval of a winery's full-service retail outlet and for revocation of this approval. The division shall approve a winery's full-service retail outlet, and may not revoke this approval, unless the winery has violated a provision of this chapter related to full-service retail outlets. The division's failure to approve, or revocation of approval of, a full-service retail outlet described in a winery's application or permit does not affect any other full-service retail outlet or the winery premises as described in the application or permit.

SB268-SA2,102,18 3. If the division approves a full-service retail outlet, the winery permit, as initially issued or as amended, shall particularly describe the premises constituting the full-service retail outlet, which shall be considered part of the premises under the winery permit.

SB268-SA2,102,21 4. If the division approves a full-service retail outlet, the agent appointed under s. 125.04 (6) for the winery permit shall also serve as the agent for the full-service retail outlet.

SB268-SA2,103,2 5. Section 125.04 (12) (a) does not apply to a winery's full-service retail outlet. Upon notice to the division, a winery may relocate any full-service retail outlet to a new location within this state once per calendar year, except that one full-service retail outlet of a winery may be relocated without limitation on frequency in each calendar year.

SB268-SA2,103,7 (4) (a) On winery premises, no person may sell alcohol beverages at retail for on-premises consumption, provide taste samples of alcohol beverages, or consume alcohol beverages during the closing hours applicable to a Class “B" licensee under s. 125.32 (3) (a). A full-service retail outlet under sub. (3) shall be subject to the same closing hours applicable to a Class “B" licensee under s. 125.32 (3) (a).

SB268-SA2,103,11 (b) On winery premises and at a full-service retail outlet, no person may sell alcohol beverages at retail for off-premises consumption during the hours in which a Class “B” licensee in the municipality where the winery or retail outlet is located may not make retail sales under s. 125.32 (3) (am) and (d).

SB268-SA2,103,14 (c) No member of the public or invited guests may be present on winery premises during the closing hours applicable to a Class “B" licensee under s. 125.32 (3) (a).

SB268-SA2,103,16 (d) Activities authorized under a winery permit related to the production, shipment, transportation, or delivery of alcohol beverages may occur at any time.

SB268-SA2,26fv Section 26fv. 125.535 (1) of the statutes is amended to read:

SB268-SA2,103,22 125.535 (1) Authorized activities. The department division shall issue direct wine shippers' permits authorizing the permittee to ship wine manufactured or bottled by the permittee 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.

SB268-SA2,26fw Section 26fw. 125.535 (2) of the statutes is amended to read:

SB268-SA2,104,2 125.535 (2) Annual permit fee. The department division may, by rule, establish an annual fee, not to exceed $100, for each permit issued under this section. All fees collected under this subsection shall be credited to the appropriation account under s. 20.566 (1) (ha).

SB268-SA2,26fx Section 26fx. 125.535 (3) (b) 2. of the statutes is amended to read:

SB268-SA2,104,8 125.535 (3) (b) 2. The winery submits to the department division, with any initial application or renewal for a certificate under s. 73.03 (50) or a permit under par. (a) 3. or 4., a copy of any current license, permit, or authorization issued to the winery by the state from which the winery will ship wine into this state or the winery's federal basic permit.

SB268-SA2,26fy Section 26fy. 125.535 (3) (b) 3. of the statutes is created to read:

SB268-SA2,104,10 125.535 (3) (b) 3. The winery satisfies all requirements under par. (d).

SB268-SA2,26fz Section 26fz. 125.535 (3) (c) of the statutes is amended to read:

SB268-SA2,104,23 125.535 (3) (c) Notwithstanding s. 125.04 (5) (a), natural persons obtaining direct wine 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 eligible for a permit under this section. Corporations and limited liability companies obtaining direct wine shippers' permits are subject to s. 125.04 (6) and any other person, including any natural person or cooperative, obtaining a direct wine shipper's permit shall appoint an agent, and be subject to all provisions of s. 125.04 (6), in the same manner applicable to corporations and limited liability companies. Notwithstanding s. 125.04 (5) (a) 2. and (c), an agent appointed under s. 125.04 (6) by a corporation or limited liability company obtaining a direct wine shipper's permit is not required to be a resident of this state.

SB268-SA2,26gb Section 26gb. 125.535 (3) (d) and (e) of the statutes are created to read:

SB268-SA2,105,11 125.535 (3) (d) 1. Unless the permittee or agent of the permittee appointed under s. 125.04 (6) is a resident of this state, or unless the permittee maintains a registered agent in this state under s. 180.0501, 180.1507, 183.0105, or 183.1007, a permittee under this section shall appoint and continually engage the services of an agent in this state to act as agent for the service of process on whom all processes, and any action or proceeding against the permittee concerning or arising out of the enforcement of any provision of this chapter or ch. 139, may be served in any manner authorized by law. That service shall constitute legal and valid service of process on the permittee. The permittee shall provide to the division, in the form and manner prescribed by the division, the name, address, phone number, and proof of the appointment and availability of the agent.

SB268-SA2,105,18 2. The permittee shall provide notice to the division 30 calendar days before termination of the authority of an agent under subd. 1. and shall provide proof to the satisfaction of the division of the appointment of a new agent no less than 5 calendar days before the termination of an existing agent appointment. In the event an agent terminates an agency appointment, the permittee shall notify the division of that termination within 5 calendar days and shall include proof to the satisfaction of the division of the appointment of a new agent.

SB268-SA2,105,23 3. If a permittee fails to maintain an agent in this state after a permit is issued under this section, the permittee is considered to have appointed the department of financial institutions as the permittee's agent, and the permittee may be proceeded against in courts of this state by service of process upon the department of financial institutions.

SB268-SA2,105,25 (e) The application for a permit under this section shall include a provision that the permittee agrees to do all of the following:

SB268-SA2,106,2 1. File reports, provide records, and allow inspections and examinations to the extent provided in s. 125.025 and ch. 139.

SB268-SA2,106,4 2. Pay the expenses reasonably attributable to inspections and examinations made by the division at any premises of the permittee located outside this state.

SB268-SA2,106,6 3. Accept service of process and consent to jurisdiction in any proceeding in this state to enforce the provisions of this chapter or ch. 139.

SB268-SA2,26gc Section 26gc. 125.535 (7) of the statutes is created to read:

SB268-SA2,106,10 125.535 (7) Shipments through fulfillment house; common carriers. (a) A permittee under this section may arrange with a fulfillment house to ship wine on the permittee's behalf only if the fulfillment house holds a permit under s. 125.23.

SB268-SA2,106,12 (b) All containers of wine shipped directly to an individual in this state shall be shipped using a common carrier holding a permit issued under s. 125.22.

SB268-SA2,26gd Section 26gd. 125.54 (1) of the statutes is amended to read:

SB268-SA2,106,20 125.54 (1) Authorized activities. The department division shall issue wholesalers' permits authorizing the permittee to sell, from the premises described in the permit, intoxicating liquor at wholesale to retailers and wholesalers, as well as to manufacturers, rectifiers, and wineries for production purposes. The permittee may not sell intoxicating liquor for consumption on the premises. Possession of a permit under this section does not authorize the permittee to sell tax-free intoxicating liquor and wine brought into this state under s. 139.03 (5).

SB268-SA2,26ge Section 26ge. 125.54 (3) of the statutes is amended to read:

SB268-SA2,106,25 125.54 (3) Taste samples on “ Class A" retail premises. Wholesalers holding a permit issued under this section, employees of such wholesalers, and individuals representing such wholesalers may not assist or participate in providing taste samples under s. 125.06 (13) (a) or 125.51 (2) (am) or 125.69 (9).

SB268-SA2,26gf Section 26gf. 125.54 (5) of the statutes is amended to read:

SB268-SA2,107,7 125.54 (5) Sales area. No wholesaler may sell any intoxicating liquor before filing with the department division a written statement that the permittee is a distributor of a particular brand in this state, or an area of this state, and that the sales of that brand by the permittee and anyone purchasing from the permittee will be limited to the area specified. The permittee shall notify the department division of any change in the area within 7 days of the effective date of the change.

SB268-SA2,26gg Section 26gg. 125.54 (6) of the statutes is amended to read:

SB268-SA2,107,13 125.54 (6) Multiple permits. Not more than 2 Multiple wholesalers' permits may be issued to any one person. In each application for a wholesaler's permit, the applicant shall state that whether application has not been made for more than one any other wholesaler's permit and shall identify any other wholesaler's permit held by the applicant.

SB268-SA2,26gh Section 26gh. 125.54 (7) (a) 2. of the statutes is amended to read:

SB268-SA2,107,21 125.54 (7) (a) 2. A permittee under this section shall annually sell and deliver intoxicating liquor to at least 10 retail licensees or permittees that do not have any direct or indirect an interest in each other or in the permittee under this section. The department division shall not issue a permit under this section unless the applicant represents to the department division an intention to satisfy this requirement, and shall not renew a permit issued under this section unless the permittee demonstrates that this requirement has been satisfied.

SB268-SA2,26gi Section 26gi. 125.54 (7) (c) 3. of the statutes is amended to read:

SB268-SA2,107,25 125.54 (7) (c) 3. This paragraph shall not affect the authority of any municipality or the department division to revoke, suspend, or refuse to renew or issue a license or permit under s. 125.12.

SB268-SA2,26gj Section 26gj. 125.54 (7) (d) of the statutes is amended to read:

SB268-SA2,108,11 125.54 (7) (d) The department division shall promulgate rules to administer and enforce the requirements under this subsection. The rules shall ensure coordination between the department's division'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 division personnel generally familiar with activities of intoxicating liquor wholesalers. The department division 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 division of such warehouse facilities.

SB268-SA2,26gk Section 26gk. 125.545 (title) of the statutes is amended to read:

SB268-SA2,108,13 125.545 (title) Small winery cooperative wholesalers.

SB268-SA2,26gm Section 26gm. 125.545 (1) (a) of the statutes is amended to read:

SB268-SA2,108,18 125.545 (1) (a) “Member" means a small winery or small manufacturer that meets the requirements established under this section for membership in a cooperative wholesaler and that has been qualified and accepted for membership in a cooperative wholesaler.

SB268-SA2,26gn Section 26gn. 125.545 (1) (ar) of the statutes is created to read:

SB268-SA2,108,21 125.545 (1) (ar) “Out-of-state manufacturer" means a manufacturer or rectifier of intoxicating liquor that is located in a state other than this state.

SB268-SA2,26go Section 26go. 125.545 (1) (cm) of the statutes is created to read:

SB268-SA2,108,25 125.545 (1) (cm) “Small manufacturer" means any manufacturer or rectifier that produces and bottles less than 50,000 gallons of intoxicating liquor other than wine in a calendar year.

SB268-SA2,26gp Section 26gp. 125.545 (1) (d) of the statutes is amended to read:

SB268-SA2,109,3 125.545 (1) (d) “Small winery" means any winery that produces and bottles less than 25,000 50,000 gallons of wine in a calendar year.

SB268-SA2,26gq Section 26gq. 125.545 (1) (e) of the statutes is amended to read:

SB268-SA2,109,6 125.545 (1) (e) “Small winery cooperative wholesaler" or “cooperative wholesaler" means an entity established under this section.