Analysis by the Legislative Reference Bureau
commerce and economic development
Commerce
Under current law, alcohol beverages are generally distributed to consumers under a three-tier distribution system: the manufacturer may sell only to a wholesaler or rectifier; the wholesaler or rectifier may sell only to a wholesaler or to a retailer; and the retailer may sell only to the consumer. With specific exceptions, no person may sell outside of the three-tier system. DOR issues intoxicating liquor wholesalers' permits authorizing the sale of intoxicating liquor (wine and distilled spirits) at wholesale from the premises described in the permit to intoxicating liquor retailers and to other wholesalers. With limited exceptions, a manufacturer may not hold any direct or indirect interest in a wholesaler and a manufacturer or wholesaler may not hold any direct or indirect interest in a retailer.
Under this bill, any intoxicating liquor sold by a wholesaler must be physically unloaded at the wholesaler's premises prior to being delivered to a retailer or to another wholesaler, and the wholesaler's premises must be capable of warehousing intoxicating liquor. Also, a wholesaler must annually sell and deliver intoxicating liquor to at least ten retailers that do not have any direct or indirect interest in each other or in the wholesaler. If a wholesaler violates these requirements, in addition to the current penalty of a fine of up to $1,000 or imprisonment for not more than 90 days or both, a court may order that the wholesaler forfeit profits gained from the violation and that the wholesaler's permit be revoked. A retailer that receives a benefit from a wholesaler violation, with knowledge of the circumstances giving rise to the violation, is subject to similar penalties. The bill also requires DOR to promulgate rules related to enforcement of these requirements.
Under current law, DOR may suspend or revoke any alcohol beverages permit issued by DOR for violating any legal requirement. This bill creates a new, similar mechanism that applies specifically to suspension or revocation of wholesaler's permits based upon written allegations, including allegations of third parties, without a hearing.
Under current law, upon request by the secretary of revenue, the attorney general may represent this state or assist a district attorney in prosecuting any alcohol beverages violation, but DOR is not authorized to prosecute such violations. This bill authorizes DOR to represent the state in prosecuting violations of the wholesaler requirements created by the bill. The bill also creates a private cause of action on behalf of wholesalers, retailers, and trade associations allowing them to prosecute violations of the wholesaler requirements created by the bill if a complaint is made to DOR and DOR fails to timely render a decision on the complaint.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 125.12 (6) of the statutes is created to read:
125.12 (6) REVOCATION OR SUSPENSION OF INTOXICATING LIQUOR WHOLESALERS' PERMITS FOR CERTAIN VIOLATIONS. (a) Any person may file a sworn written complaint with the department alleging that an intoxicating liquor wholesaler has violated s. 125.54 (7) (a). The complaint shall identify the specific legal basis for the complaint and sufficient facts for the department to determine whether there is cause to find that a violation has occurred. The department shall provide a copy of the complaint to any wholesaler against whom allegations are made, along with notice of the time period under par. (b) to show cause why the wholesaler's permit should not be revoked or suspended.
(b) Within 30 days of receiving a copy of the complaint under par. (a), any wholesaler against whom allegations are made may file a sworn written response.
(c) Subject to par. (d), within 60 days of receiving any response under par. (b) or, if no response is made, within 60 days of the date on which a response is due under par. (b), the department shall make a written decision as to whether a violation has occurred and either dismiss the complaint or take action under par. (e). Any decision under this paragraph shall include findings of fact and conclusions of law and shall state all reasons for the decision. The department shall provide a copy of the decision to the complainant and to any wholesaler against whom allegations are made.
(d) Within 60 days of receiving any response under par. (b) or, if no response is made, within 60 days of the date on which a response is due under par. (b), the department may extend the time period for making a decision under par. (c) by an additional 60 days if the department provides notice within the time period specified in par. (c) that an additional 60 days is necessary for investigation.
(e) If the department finds the allegations true and sufficient, the department shall either suspend for not less than 10 days nor more than 90 days or revoke the wholesaler's permit, and give notice of the suspension or revocation to the wholesaler.
(f) A revocation or suspension under this subsection is a contested case under ch. 227.
SECTION 2. 125.145 of the statutes is amended to read:
125.145 Prosecutions by attorney general or department. Upon request by the secretary of revenue, the attorney general may represent this state or assist a district attorney in prosecuting any case arising under this chapter. The department may represent this state in prosecuting any violation of s. 125.54 (7) (a) or (b) and shall bring any such action in the circuit court for Dane County.
SECTION 3. 125.15 of the statutes is created to read:
125.15 Actions against intoxicating liquor wholesalers. If any intoxicating liquor wholesaler, intoxicating liquor retail licensee or permittee, or intoxicating liquor trade association makes a written complaint to the department under s. 125.12 (6) of a violation of s. 125.54 (7) (a), and the department has not rendered a decision within the time periods specified in s. 125.12 (6) (c) and (d), the complaining party may bring an action to enforce the provisions of s. 125.54 (7) and shall be entitled to recover reasonable attorney fees if found to be the prevailing party.
SECTION 4. 125.54 (7) of the statutes is created to read:
125.54 (7) BONA FIDE WHOLESALERS. (a) 1. The premises described in a permit issued under this section shall be capable of warehousing intoxicating liquor. Any intoxicating liquor sold by the permittee shall be physically unloaded at the premises described in the permit prior to being delivered to a retail licensee or permittee or to another wholesaler.
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 interest in each other or in the permittee under this section. The department shall not issue a permit under this section unless the applicant represents to the department 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.
(b) No intoxicating liquor retail licensee or permittee may receive a benefit from a violation under par. (a) with knowledge of the circumstances giving rise to the violation.
(c) 1. In addition to imposing any penalty provided under s. 125.11, a court may order a wholesaler who violates this subsection to forfeit an amount equal to any profit gained by the wholesaler or by a retail licensee or permittee that violates par. (b), or by both, resulting from the violation, and the court may further order that the wholesaler's permit be revoked except that, if the wholesaler violates par. (a) 2., the permit shall be revoked.
2. In addition to imposing any penalty provided under s. 125.11, a court may order a retail licensee or permittee who violates this subsection to forfeit an amount equal to any profit gained by the retail licensee or permittee resulting from the violation, and the court may further order that the retail license or permit be revoked.
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.
(d) 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 intoxicating liquor 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.
(End)
LRB-1837LRB-1837/2
RAC:cjs&jld:ch
2005 - 2006 LEGISLATURE
DOA:......Hoadley - Lapses and fund transfers relating to WRS unfunded retirement liability debt service
For 2005-07 Budget -- Not Ready For Introduction
2005 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
State government
State finance
In the last fiscal biennium, obligations were issued by the state to pay the state's unfunded liabilities under the Wisconsin Retirement System (WRS). These liabilities had been incurred as a result of unfunded benefit improvements under the WRS and their cost had been allocated to each state agency as part of its required WRS contributions. This bill requires the secretary of administration during the 2005-07 fiscal biennium to lapse or transfer to the general fund from appropriations to each state agency, other than DETF and the State of Wisconsin Investment Board, moneys that would otherwise have been expended by the state agency to pay the WRS unfunded liabilities had the obligations not been issued. In addition, the bill requires the secretary in each future fiscal biennium to lapse or transfer these moneys to the general fund based on each state agency's proportionate share of all state retirement contributions that are required to be paid in that fiscal biennium.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 16.529 of the statutes is repealed and recreated to read:
16.529 Lapses and fund transfers relating to unfunded retirement liability debt service. (1) The definitions in s. 20.001 are applicable in this section, except that "state agency" does not include the department of employee trust funds or the investment board.
(2) Beginning in the 2007-09 fiscal biennium, during each fiscal biennium the secretary shall lapse to the general fund or transfer to the general fund from each state agency appropriation specified in sub. (3) an amount equal to that portion of the total amount of principal and interest to be paid on obligations issued under s. 16.527 during the fiscal biennium that is allocable to the appropriation, as determined under sub. (3).
(3) The secretary shall determine the amounts of the allocations required under sub. (2) as follows:
(a) The secretary shall first determine the total amount of Wisconsin retirement system contributions that are to be paid by the state under s. 40.05 during the fiscal biennium.
(b) The secretary shall then determine the percentage of the total amount determined under par. (a) that is allocable to each state agency appropriation from which Wisconsin retirement system contributions under s. 40.05 are paid. The secretary shall exclude from this determination any appropriation from which a lapse or transfer to pay any principal or interest amount on obligations issued under s. 16.527 would violate a condition imposed by the federal government on the expenditure of the moneys or if the lapse or transfer would violate the federal or state constitution.
(c) For each appropriation identified under par. (b), the secretary shall then apply the percentage calculated under par. (b) to the total amount of principal and interest to be paid during the fiscal biennium on obligations issued under s. 16.527. This amount is the portion of the total amount of principal and interest paid on the obligations during that fiscal biennium that is allocable to each appropriation.
SECTION 9155. Nonstatutory provisions; other.
(1) STATE AGENCY PAYMENTS RELATING TO UNFUNDED LIABILITIES UNDER THE WISCONSIN RETIREMENT SYSTEM.
(a) The definitions in section 20.001 of the statutes are applicable in this subsection, except that "state agency" does not include the department of employee trust funds or the investment board.
(b) The secretary of administration shall determine for each state agency the amount that the state agency would have been required to expend under section 40.05 (2) (b) and (4) (b), (bc), and (bw) and subchapter IX of chapter 40 of the statutes during the 2005-07 fiscal biennium had the obligations under section 16.527 of the statutes not been issued, and each appropriation from which the moneys would have been expended. The secretary shall exclude from this determination any appropriation from which a lapse or transfer to pay any principal or interest amount on obligations issued under section 16.527 of the statutes would violate a condition imposed by the federal government on the expenditure of the moneys or if the lapse or transfer would violate the federal or state constitution.
(c) From each appropriation identified in paragraph (b), the secretary shall lapse to the general fund or transfer to the general fund the amount specified in paragraph (b) that would otherwise have been expended from the appropriation.
(End)
LRB-1838LRB-1838/4
MJL:wlj:jf
2005 - 2006 LEGISLATURE
DOA:......Binau, BB0469 - Report on UWS faculty creation
For 2005-07 Budget -- Not Ready For Introduction
2005 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
Education
Higher education
This bill requires the Board of Regents of the UW System to submit to the secretary of administration by August 1, 2006, a report that describes by position classification and campus the faculty and instructional staff positions that were created from July 1, 2004, to July 1, 2006, to promote access to the UW System.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 9152. Nonstatutory provisions; University of Wisconsin System.
(1) POSITION REPORT. No later than August 1, 2006, the Board of Regents of the University of Wisconsin System shall submit to the secretary of administration a report that describes by position classification and campus the faculty and instructional staff positions that were created from July 1, 2004, to July 1, 2006, to promote access to the University of Wisconsin System.
(End)
LRB-1839LRB-1839/2
MJL:wlj:jf
2005 - 2006 LEGISLATURE
DOA:......Binau, BB0468 - Administrative reduction plan
For 2005-07 Budget -- Not Ready For Introduction
2005 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
EducaTion
Higher education
This bill requires the Board of Regents (board) of the UW System to file a plan with DOA to eliminate 200 UW System administrative positions. Unless the secretary of administration approves the plan, the board loses the authority, under current law, to create or abolish faculty and academic staff positions from general program operations funding during the 2006-07 fiscal year.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 9152. Nonstatutory provisions; University of Wisconsin System.
(1) PLAN TO ELIMINATE POSITIONS. By May 30, 2006, the Board of Regents of the University of Wisconsin System shall submit to the secretary of administration for his or her approval a plan to eliminate 200 administrative positions within the University of Wisconsin System, specified by position classification and location. Notwithstanding section 16.505 (2p) of the statutes, the Board of Regents of the University of Wisconsin System may not during the 2006-07 fiscal year create any full-time equivalent academic staff or faculty positions from revenues appropriated under section 20.285 (1) (a) of the statutes until the secretary of administration approves the plan.
(End)
LRB-1840LRB-1840/1
MJL:wlj:rs
2005 - 2006 LEGISLATURE
DOA:......Binau - Tuition remissions
For 2005-07 Budget -- Not Ready For Introduction
2005 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
Education
Higher education
Current law authorizes the Board of Regents of the UW System to award nonresident tuition exemptions to different categories of students, but the number of remissions for each category is limited. This bill eliminates these limits.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
