Amendment SA2-SB268

SB268-SA2,129,12 125.69 (9) Providing taste samples on retail premises. (a) Subject to par. (e), with the consent of the “Class A,” “Class B,” or “Class C” licensee, a winery, manufacturer, or rectifier may provide, free of charge, on “Class A,” “Class B,” or “Class C” premises, taste samples of intoxicating liquor 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.

SB268-SA2,129,16 (b) A taste sample of wine may not exceed 3 fluid ounces and a person may not receive more than 2 taste samples of wine per day. A taste sample of intoxicating liquor other than wine may not exceed 0.5 fluid ounces and a person may receive not more than one taste sample of such intoxicating liquor per day.

SB268-SA2,129,22 (c) A winery, manufacturer, or rectifier may provide taste samples of any intoxicating liquor purchased from the retail licensee or of any intoxicating liquor the winery, manufacturer, or rectifier produced on premises covered by its winery permit, manufacturer's permit, or rectifier's permit and brings to the retail premises, but the winery, manufacturer, or rectifier may not leave at the retail premises any unused intoxicating liquor not purchased from the retail licensee.

SB268-SA2,129,25 (d) Any representative of a manufacturer, rectifier, or winery issued a permit under s. 125.52 or 125.53 may assist the retail licensee in dispensing or serving the taste samples.

SB268-SA2,130,2 (e) This subsection authorizes taste samples only of wine on “Class C” licensed premises.”.

SB268-SA2,130,3 17. Page 19, line 8: after that line insert:

SB268-SA2,130,4 “ Section 40b. 139.01 (2p) of the statutes is created to read:

SB268-SA2,130,6 139.01 (2p) “Division" means the division of alcohol beverages in the department.

SB268-SA2,40c Section 40c. 139.01 (4) of the statutes is amended to read:

SB268-SA2,130,11 139.01 (4) “License," and “fermented malt beverages" have the same meaning as in s. 125.02, and “licensed premises" are premises described in licenses and permits issued by the department division, cities, villages, or towns under the authority of said section.

SB268-SA2,40d Section 40d. 139.01 (4) of the statutes, as affected by 2023 Wisconsin Act .... (this act), section 40c, is amended to read:

SB268-SA2,130,17 139.01 (4) “License," and “fermented malt beverages" have the same meaning as in s. 125.02, and “licensed premises" are premises described in licenses and permits issued by the division, cities, villages, or towns under the authority of said section, other than a permit issued under s. 125.175.

SB268-SA2,40e Section 40e. 139.01 (4) of the statutes, as affected by 2023 Wisconsin Act .... (this act), section 40d, is amended to read:

SB268-SA2,130,23 139.01 (4) “License," and “fermented malt beverages" have the same meaning as in s. 125.02, and “licensed premises" are premises described in licenses and permits issued by the division, cities, villages, or towns under the authority of said section, other than a permit permits issued under s. ss. 125.175 and 125.24.

SB268-SA2,40f Section 40f. 139.01 (6) of the statutes is amended to read:

SB268-SA2,131,16 139.01 (6) A “rectifier" is a person who rectifies, purifies or refines distilled spirits or wines by any process other than by original and continuous distillation from mash, wort or wash, through continuous closed vessels or pipes, until the manufacture thereof is complete, or who has in his or her possession any still or leach tub or keeps any other apparatus for the purpose of refining in any manner distilled spirits or the other liquors, or who after rectifying and purifying distilled spirits, by mixing such spirits or liquors with any materials, manufactures any spurious, imitation or compound liquors for sale, and any person who, without rectifying, purifying or refining distilled spirits, by mixing such spirits with any materials, manufactures any spurious, imitation or compound liquors for sale under the name of “whiskey," “brandy," “gin," “rum," “spirits," “ cordials" or any other name, and who is also a distiller or is under substantially the same management or control as a distiller. A rectifier may sell at wholesale intoxicating liquors rectified by him or her without any other license than that of a rectifier. “Rectifier” does not include a “Class B” licensee that prepares, stores, or dispenses mixed drinks in advance of sale in compliance with s. 125.51 (3) (bg).

SB268-SA2,40g Section 40g. 139.03 (5) (a) of the statutes is amended to read:

SB268-SA2,131,25 139.03 (5) (a) No person who enters this state from another state may have in his or her possession and bring into the state any intoxicating liquor or wine. The prohibition in this paragraph does not apply to a person who changes his or her domicile from another state or a foreign country to this state and who brings into this state intoxicating liquor and wine constituting household goods. The prohibition in this paragraph does not apply to intoxicating liquor or wine consigned to any person having a permit from the secretary division to engage in the sale of such intoxicating liquor or wine.

SB268-SA2,40h Section 40h. 139.04 (4) of the statutes is amended to read:

SB268-SA2,132,4 139.04 (4) Sale or shipment of fermented malt beverages by a brewer to a bottler or between brewers, or of intoxicating liquor, whether in bulk or any state of packaging, between manufacturers, rectifiers, and wineries.

SB268-SA2,40i Section 40i. 139.06 (3) of the statutes is amended to read:

SB268-SA2,132,14 139.06 (3) In shipping intoxicating liquor, whether in bulk for the purpose of bottling or rectifying to a rectifier located within the state or in any state of packaging, to a manufacturer or rectifier holding a permit under s. 125.52, the manufacturer or rectifier shall securely affix thereto a label or statement, in such form as is prescribed by the secretary, reciting that the shipment is made for the purpose of bottling or rectifying a tax-exempt transfer between producers as authorized under s. 139.04 (4). Each manufacturer or rectifier making such shipments shall file an information report that shows the dates and quantities of shipments and the name and address of each consignee.

SB268-SA2,40j Section 40j. 139.08 (3) of the statutes is amended to read:

SB268-SA2,132,18 139.08 (3) Police powers. The department of revenue shall enforce and the duly authorized employees of the department shall have all necessary police powers to prevent violations of s. 134.65, and this subchapter and ch. 125.

SB268-SA2,40k Section 40k. 139.08 (4) of the statutes is amended to read:

SB268-SA2,133,9 139.08 (4) Inspection for enforcement. Duly authorized employees of the department of justice and the department of revenue and any sheriff, police officer, marshal, or constable, within their respective jurisdictions, may at all reasonable hours enter any licensed premises, and examine the books, papers, and records of any brewer, brewpub, manufacturer, bottler, rectifier, wholesaler, or retailer, for the purpose of inspecting the same and determining whether the tax and fee imposed by ss. 139.01 to 139.25 have been fully paid, and may inspect and examine, according to law, any premises where fermented malt beverages or intoxicating liquors are manufactured, sold, exposed for sale, possessed, or stored, for the purpose of inspecting the same and determining whether the tax imposed by ss. 139.01 to 139.25 has been fully paid, and whether ss. 139.01 to 139.25 and ch. 125 are being complied with. Any refusal to permit such examination of such premises is sufficient grounds under s. 125.12 for revocation or suspension of any license or permit granted for the sale of any fermented malt beverages or intoxicating liquors and is punishable under s. 139.25 (10).

SB268-SA2,40m Section 40m. 139.08 (5) of the statutes is created to read:

SB268-SA2,133,15 139.08 (5) Retention of certain records. Notwithstanding any retention schedule established for the department's records under s. 16.61, the department shall retain for 3 years after receipt by the department all reports submitted to the division under ss. 125.22 (2) and 125.23 (5) and all records received by the division relating to these reports.

SB268-SA2,40n Section 40n. 139.11 (1) of the statutes is amended to read:

SB268-SA2,133,25 139.11 (1) Preservation of records. Every person who manufactures, rectifies, distributes, imports, transports, stores, warehouses, or sells intoxicating liquor or fermented malt beverages shall keep complete and accurate records of all such liquor or malt beverages purchased, sold, manufactured, rectified, brewed, fermented, distilled, produced, stored, warehoused, imported, or transported within this state. Such records shall be of a kind and in the form prescribed by the secretary and shall be safely preserved to ensure accessibility for inspection by the secretary or by the division as provided in s. 125.025 (3). A person required to keep records under this subsection may keep such records in electronic form only.

SB268-SA2,40o Section 40o. 139.11 (1) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB268-SA2,134,14 139.11 (1) Preservation of records. Every person who manufactures, rectifies, distributes, imports, transports, stores, warehouses, or sells intoxicating liquor or fermented malt beverages shall keep complete and accurate records of all such liquor or malt beverages purchased, sold, manufactured, rectified, brewed, fermented, distilled, produced, stored, warehoused, imported, or transported within this state. Such records shall be of a kind and in the form prescribed by the secretary and shall be safely preserved to ensure accessibility for inspection by the secretary or by the division as provided in s. 125.025 (3). A person required to keep records under this subsection may keep such records in electronic form only. Any common carrier or fulfillment house required to submit reports under s. 125.22 or 125.23 shall maintain, for 3 years, all records related to the reports or otherwise required to be kept under this subsection.”.

SB268-SA2,134,15 18. Page 19, line 15: after that line insert:

SB268-SA2,134,16 “ Section 41b. 139.11 (4) (a) 2. of the statutes is amended to read:

SB268-SA2,134,22 139.11 (4) (a) 2. A current list, available on paper and on the department's Internet site, providing detailed information regarding every person issued a wholesalers permit under s. 125.28, brewers permit under s. 125.29, brewpub permit under s. 125.295, or out-of-state shippers permit under s. 125.30. The information provided under this subdivision shall include the name and address of the permit holder and the date on which the department division issued the permit.

SB268-SA2,41c Section 41c. 139.11 (4) (b) 2. of the statutes is amended to read:

SB268-SA2,135,8 139.11 (4) (b) 2. A current and regularly updated list, made available on paper and on the department's Internet website, of permit holders that minimally includes detailed information on the name, address, contact person, and date of permit issuance for every common carrier permit issued under s. 125.22, fulfillment house permit issued under s. 125.23, manufacturer's and rectifier's permit issued under s. 125.52, winery permit issued under s. 125.53, direct wine shipper's permit issued under s. 125.535, wholesaler's permit issued under s. 125.54, and out-of-state shipper's permit issued under s. 125.58.

SB268-SA2,41d Section 41d. 139.22 of the statutes is amended to read:

SB268-SA2,135,21 139.22 Confiscation. If a duly authorized employee of the department of revenue or the department of justice or any sheriff, police officer, marshal, or constable, within his or her respective jurisdiction, discovers any fermented malt beverages upon any premises other than the premises of a brewer, brewpub, or bottler, or any intoxicating liquor upon any premises other than the premises of a manufacturer, rectifier, winery, or wholesaler, and upon which the tax has not been paid or which was possessed, kept, stored, manufactured, sold, distributed, or transported in violation of ss. 139.01 to 139.25 and ch. 125, the employee or any such officer may immediately seize the fermented malt beverages or intoxicating liquors. Any such fermented malt beverages or intoxicating liquors so seized shall be held transferred by the department of revenue to the division and disposed of under s. 125.14 (2) (e).

SB268-SA2,41e Section 41e. 139.25 (9) of the statutes is amended to read:

SB268-SA2,135,25 139.25 (9) Failure to keep records. Failure to comply with s. 139.11 (1) shall carry a penalty of revocation by the secretary of revenue division of the license or permit.”.

SB268-SA2,136,1 19. Page 21, line 17: after that line insert:

SB268-SA2,136,2 “ Section 49c. 185.043 (2) of the statutes is amended to read:

SB268-SA2,136,10 185.043 (2) If the cooperative is formed for purposes of operating as a small winery cooperative wholesaler under s. 125.545, 3 or more individuals, at least one of whom must be a resident and all of which must be owners of small wineries certified by the division of alcohol beverages in the department of revenue under s. 125.545 (6) (a), may form a cooperative by signing, acknowledging, and filing articles. Membership in a cooperative formed under this subsection is limited to small wineries certified by the department of revenue division of alcohol beverages under s. 125.545 (6) (a).

SB268-SA2,49d Section 49d. 185.043 (2) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB268-SA2,136,20 185.043 (2) If the cooperative is formed for purposes of operating as a small winery cooperative wholesaler under s. 125.545, 3 or more individuals, at least one of whom must be a resident and all of which must be owners of small wineries or small manufacturers certified by the division of alcohol beverages in the department of revenue under s. 125.545 (6) (a), may form a cooperative by signing, acknowledging, and filing articles. Membership in a cooperative formed under this subsection is limited to small wineries or small manufacturers certified by the division of alcohol beverages under s. 125.545 (6) (a).

SB268-SA2,49e Section 49e. 227.52 (1) of the statutes is amended to read:

SB268-SA2,136,23 227.52 (1) Decisions of the department of revenue other than decisions relating to alcohol beverage permits issued under ch. 125.

SB268-SA2,49f Section 49f. 230.08 (2) (e) 11. of the statutes is amended to read:

SB268-SA2,137,1 230.08 (2) (e) 11. Revenue — 7 8.”.

SB268-SA2,137,2 20. Page 21, line 19: delete lines 19 to 25 and substitute:

SB268-SA2,137,9 “230.36 (1m) (b) 2. (intro.) A conservation warden, conservation patrol boat captain, conservation patrol boat engineer, member of the state patrol, state motor vehicle inspector, University of Wisconsin System police officer, security officer, or security person, other state facilities police officer, special tax agent, excise tax investigator special agent employed by the department of revenue who is authorized to act under s. 73.031, and special criminal investigation agent employed by the department of justice at all times while:”.

SB268-SA2,137,10 21. Page 22, line 3: after that line insert:

SB268-SA2,137,12 “ Section 51m. 346.657 (1) of the statutes, as affected by 2023 Wisconsin Act 9, is amended to read:

SB268-SA2,137,18 346.657 (1) If a court imposes a fine or a forfeiture for a violation of s. 346.62 or 346.63 (1) or (5), or a local ordinance in conformity therewith, or s. 346.63 (2) or (6) or 940.25, or s. 940.09 where the offense involved the use of a vehicle, it shall impose a safe ride program surcharge under ch. 814 in an amount of $50 $75 in addition to the fine or forfeiture, plus costs, fees, and other surcharges imposed under ch. 814.”.

SB268-SA2,137,19 22. Page 24, line 21: after that line insert:

SB268-SA2,137,20 “ Section 64b. Tax 8.87 of the administrative code is repealed.

SB268-SA2,64c Section 64c. Nonstatutory provisions.

SB268-SA2,137,22 (1) Transfer of alcohol beverages regulation and enforcement functions.

SB268-SA2,137,23 (a) Definitions. In this subsection:

SB268-SA2,137,24 1. “Department” means the department of revenue.

SB268-SA2,138,1 2. “Division” means the division of alcohol beverages in the department.

SB268-SA2,138,2 3. “Secretary” means the secretary of revenue.

SB268-SA2,138,6 (b) Assets and liabilities. On the effective date of this paragraph, the assets and liabilities of the department primarily related to alcohol beverages regulation and enforcement under ch. 125, as determined by the secretary, become the assets and liabilities of the division.

SB268-SA2,138,10 (c) Tangible personal property. On the effective date of this paragraph, all tangible personal property, including records, of the department that is primarily related to alcohol beverages regulation and enforcement under ch. 125, as determined by the secretary, is transferred to the division.

SB268-SA2,138,16 (d) Contracts. All contracts entered into by the department in effect on the effective date of this paragraph that are primarily related to alcohol beverages regulation and enforcement under ch. 125, as determined by the secretary, remain in effect and are transferred to the division. The division shall carry out any obligations under those contracts unless modified or rescinded by the division to the extent allowed under the contract.

SB268-SA2,138,21 (e) Position and employee transfers. On the effective date of this paragraph, all positions, and the incumbent employees who hold those positions, in the department with duties that are primarily related to alcohol beverages regulation and enforcement under ch. 125, as determined by the secretary, are transferred to the division.

SB268-SA2,139,2 (f) Employee status. Employees transferred under par. (e ) have all the rights and the same status under ch. 230 in the division that they enjoyed in the department immediately before the transfer. Notwithstanding s. 230.28 (4), no employee transferred under par. (e ) who has attained permanent status in class is required to serve a probationary period.

SB268-SA2,139,9 (g) Rules and orders. All rules promulgated by the department that relate to alcohol beverages regulation and enforcement under ch. 125 and that are in effect on the effective date of this paragraph remain in effect until their specified expiration dates or until amended or repealed by the division. All orders issued by the department that relate to alcohol beverages regulation and enforcement under ch. 125 and that are in effect on the effective date of this paragraph remain in effect until their specified expiration dates or until modified or rescinded by the division.

SB268-SA2,139,15 (h) Pending matters. Any matter pending with the department on the effective date of this paragraph that is primarily related to alcohol beverages regulation and enforcement under ch. 125, as determined by the secretary, is transferred to the division. All materials submitted to or actions taken by the department with respect to the pending matters are considered as having been submitted to or taken by the division.

SB268-SA2,139,18 (i) Fees. All fees established by the department related to permits issued under ch. 125 that are in effect on the day before the effective date of this paragraph shall remain in effect until modified or rescinded by the division.

SB268-SA2,139,25 (j) Secretary to develop plan for orderly transfer. The secretary shall develop a plan for an orderly transfer from the department to the division and shall resolve any disagreement between the department and the division with respect to any matter specified in this subsection. The secretary's plan for orderly transfer shall include the transfer of positions under par. (e ) plus the transfer of a sufficient number of currently vacant authorized FTE positions in the department to total 20.0 FTE positions in the division as well as initial staffing assignments in the division.

SB268-SA2,140,4 (2) Transition; permit issuer. On the effective date of this subsection, any permit issued by the department of revenue under ch. 125 prior to the effective date of this subsection shall be considered to have been issued by the division of alcohol beverages.

SB268-SA2,140,7 (3) Expiration of retail licenses held by producers. Notwithstanding s. 125.04 (11) (b), any retail license issued under ch. 125 to a winery or a brewer shall expire on the effective date of this subsection and the license shall be nonrenewable.

SB268-SA2,140,8 (4) Retail closing hour exception for 2024 national political convention.

SB268-SA2,140,9 (a) In this subsection:

SB268-SA2,140,12 1. “Convention period” means the period beginning on the first day of a national political convention held in Milwaukee in the summer of 2024 until the day after the convention's last day.

SB268-SA2,140,13 2. “Municipality” has the meaning given in s. 125.02 (11).

SB268-SA2,140,17 3. “Southeast Wisconsin municipality” means a municipality any part of which is located within Kenosha, Racine, Walworth, Rock, Milwaukee, Waukesha, Jefferson, Dane, Ozaukee, Washington, Dodge, Columbia, Sheboygan, or Fond du Lac County.

SB268-SA2,140,21 (b) 1. Notwithstanding s. 125.32 (3) (a), but subject to subds. 2. and 3., during the convention period, the closing hours for premises operating under a Class “B” license issued by a southeast Wisconsin municipality shall be between 4 a.m. and 6 a.m.

SB268-SA2,140,25 2. A southeast Wisconsin municipality may establish a process to designate, and may so designate, any licensee holding a license issued by the southeast Wisconsin municipality and to which subd. 1. would otherwise apply as ineligible or disqualified for the extended closing hour specified in subd. 1.

SB268-SA2,141,4 3. Notwithstanding s. 125.32 (3) (d), a southeast Wisconsin municipality may, by ordinance adopted after the effective date of this subdivision, opt out of subd. 1. and retain during the convention period the closing hours specified in s. 125.32 (3) (a).

SB268-SA2,141,8 (c) 1. Notwithstanding s. 125.68 (4) (c) 1., but subject to subds. 2. and 3., during the convention period, the closing hours for premises operating under a “Class B” or “Class C” license issued by a southeast Wisconsin municipality shall be between 4 a.m. and 6 a.m.

SB268-SA2,141,12 2. A southeast Wisconsin municipality may establish a process to designate, and may so designate, any licensee holding a license issued by the southeast Wisconsin municipality and to which subd. 1. would otherwise apply as ineligible or disqualified for the extended closing hour specified in subd. 1.

SB268-SA2,141,16 3. Notwithstanding s. 125.68 (4) (c) 5., a southeast Wisconsin municipality may, by ordinance adopted after the effective date of this subdivision, opt out of subd. 1. and retain during the convention period the closing hours specified in s. 125.68 (4) (c) 1.

SB268-SA2,141,22 (d) 1. Notwithstanding ss. 125.29 (8) (a), 125.52 (5) (a), and 125.53 (4) (a), but subject to subds. 2. and 3., during the convention period, the closing hours for a full-service retail outlet under s. 125.29 (7), 125.52 (4), or 125.53 (3), and the on-premises sales hours on brewery premises, manufacturing or rectifying premises, and winery premises, operating in a southeast Wisconsin municipality shall be between 4 a.m. and 6 a.m.

SB268-SA2,142,2 2. A southeast Wisconsin municipality may establish a process to designate, and may so designate, premises in the municipality of any permittee under s. 125.29, 125.52, or 125.53 to which subd. 1. would otherwise apply as ineligible or disqualified for the extended closing hour specified in subd. 1.

SB268-SA2,142,6 3. A southeast Wisconsin municipality may, by ordinance adopted after the effective date of this subdivision, opt out of subd. 1. and retain during the convention period the closing hours specified in ss. 125.29 (8) (a), 125.52 (5) (a), and 125.53 (4) (a), as unaffected by par. (b).

SB268-SA2,142,12 (5m) Transition; initial implementation authority. The administrator of the division of income, sales and excise tax in the department of revenue shall have interim authority to undertake all measures necessary to implement the changes in this act by the effective date of each change, including taking action in preparation for the creation of a division of alcohol beverages and appointment of a division administrator and bureau directors.