LRB-4189/1
PEN:kaf:lp
1997 - 1998 LEGISLATURE
November 19, 1997 - Introduced by Representatives Urban and Duff, cosponsored
by Senators Burke, Farrow and Darling. Referred to Committee on State
Affairs.
AB614,1,7 1An Act to repeal 125.51 (3) (e) 2. and 3., 125.51 (4) (a) 4. and 125.51 (4) (b) 1m.,
2(bm) and (br); to renumber and amend 125.51 (3) (e) 1.; to consolidate,
3renumber and amend
125.51 (4) (b) (intro.) and 1g.; to amend 125.04 (12) (a);
4to create 125.51 (4) (b) 1., 2., 3., 4. and 5. and 125.51 (4) (c), (d), (f), (g), (h), (i),
5(j), (k), (L), (m), (n), (o), (p), (q), (r), (s), (sm), (t) and (u) of the statutes; and to
6affect
1997 Wisconsin Act 27, section 9343 (1tv); relating to: alcohol beverage
7"Class B" and reserve "Class B" licenses.
Analysis by the Legislative Reference Bureau
Current law delegates to municipalities (cities, villages and towns) the
authority to issue on-premises liquor licenses, licenses which authorize the sale of
intoxicating liquor to be consumed on the premises where sold. Current law imposes
a quota on the number of licenses a municipality may issue.
Prior to 1997 Wisconsin Act 27, the biennial budget act, a municipality's quota
was determined using a formula, but generally was the number of licenses that were
issued by the municipality when the quota was first implemented plus an additional
license for each 500 persons residing in the municipality. There were numerous
specific exceptions to the quota authorizing municipalities to issue to qualifying
premises licenses in excess of the quota. The annual fee for an on-premises
intoxicating liquor license was established by the municipality in an amount of
$50-$500.

1997 Wisconsin Act 27 significantly modified the on-premises liquor license
quota law. In general, the act reduced the number of on-premises liquor licenses
available to be issued by a municipality by "retiring" one-half of the authorized but
unissued on-premises liquor licenses. Unlike other types of alcohol beverage
licenses, the act made the remaining on-premises liquor licenses nontransferable
from one location to another and established a minimum initial issuance fee of not
less than $10,000. A person desiring to obtain an on-premises liquor license may pay
at least $10,000 to the municipality for a nontransferable license, or obtain from
another person a (transferable) on-premises liquor license that was issued before
the enactment of 1997 Wisconsin Act 27.
This bill undoes these changes to the on-premises liquor license quota made by
1997 Wisconsin Act 27. The bill restores the quota law and its exceptions that existed
prior to the enactment of that act.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB614, s. 1 1Section 1. 125.04 (12) (a) of the statutes, as affected by 1997 Wisconsin Act 27,
2is amended to read:
AB614,2,123 125.04 (12) (a) From place to place. Every alcohol beverage license or permit
4may be transferred to another place or premises within the same municipality. An
5alcohol beverage warehouse permit under s. 125.19, a winery permit under s. 125.53
6or an intoxicating liquor wholesaler's permit under s. 125.54 may be transferred to
7another premises within this state. Transfers shall be made by the issuing authority
8upon payment of a fee of $10. No retail licensee, retail permittee, intoxicating liquor
9wholesaler or holder of a warehouse or winery permit is entitled to more than one
10transfer during the license or permit year. This paragraph does not apply to a license
11issued under s. 125.51 (4) (v) or to a reserve "Class B" license, as defined in s. 125.51
12(4) (a)
.
AB614, s. 2 13Section 2. 125.51 (3) (e) 1. of the statutes, as affected by 1997 Wisconsin Act
1427
, is renumbered 125.51 (3) (e) and amended to read:
AB614,3,5
1125.51 (3) (e) Except as provided in subds. 2. and 3., the The annual fee for a
2"Class B" license shall be established by the municipal governing body and shall be
3the same for all "Class B" licenses, except that the minimum fee shall be $50 and the
4maximum fee shall be $500. The minimum fee does not apply to licenses issued to
5bona fide clubs and lodges situated and incorporated in the state for at least 6 years.
AB614, s. 3 6Section 3. 125.51 (3) (e) 2. and 3. of the statutes, as created by 1997 Wisconsin
7Act 27
, are repealed.
AB614, s. 4 8Section 4. 125.51 (4) (a) 4. of the statutes, as created by 1997 Wisconsin Act
927
, is repealed.
AB614, s. 5 10Section 5. 125.51 (4) (b) (intro.) and 1g. of the statutes, as affected by 1997
11Wisconsin Act 27
, are consolidated, renumbered 125.51 (4) (b) (intro.) and amended
12to read:
AB614,3,1713 125.51 (4) (b) (intro.) The Except as provided in pars. (c) and (d), the quota of
14each municipality is the sum of the following: 1g. The number of licenses granted
15or
issued in good faith by the municipality and in force on the first day of the 2nd
16month beginning after the effective date of this subdivision .... [revisor inserts date].

17under s. 176.05 (21) (h), 1975 stats., plus whichever of the following is the largest:
AB614, s. 6 18Section 6. 125.51 (4) (b) 1., 2., 3., 4. and 5. of the statutes are created to read:
AB614,3,1919 125.51 (4) (b) 1. One license per 500 population or fraction thereof.
AB614,3,2120 2. The number of licenses lawfully issued and in force within the municipality
21on August 27, 1939.
AB614,3,2322 3. The number of licenses lawfully issued and in force within the municipality
23in the previous year.
AB614,3,2524 4. In the case of a village or city incorporated since August 27, 1939, one license
25per 500 population or fraction thereof at the time of incorporation.
AB614,4,3
15. In the case of any municipality incorporated or organized since August 27,
21939, the number of licenses lawfully issued and in force in the territory within the
3municipality at the time of incorporation or organization.
AB614, s. 7 4Section 7. 125.51 (4) (b) 1m., (bm) and (br) of the statutes, as created by 1997
5Wisconsin Act 27
, are repealed.
AB614, s. 8 6Section 8. 125.51 (4) (c), (d), (f), (g), (h), (i), (j), (k), (L), (m), (n), (o), (p), (q), (r),
7(s), (sm), (t) and (u) of the statutes are created to read:
AB614,4,118 125.51 (4) (c) If territory containing premises covered by a license is annexed
9to the municipality and if the municipality's quota would not otherwise allow licenses
10for the premises, the quota shall be increased to include a license for each premises
11in the annexed territory.
AB614,4,1512 (d) Detachment of territory shall decrease the quota of the remainder of the
13municipality by the number of premises covered by licenses existing in the detached
14territory, except that detachment shall not decrease the quota of the remainder to
15less than one license per 500 persons or less than one license.
AB614,4,1916 (f) Notwithstanding the quota of a town, licenses issued by the town under s.
17176.05 (21) (k), 1979 stats., remain valid and may be renewed by the town board, but
18the town board may not issue any new "Class B" licenses until the total number of
19licenses is less than the quota.
AB614,4,2420 (g) Notwithstanding the quota of a municipality, its governing body may, by a
21three-fourths vote of its members, issue a license limited to the sale of wine for
22consumption only on the premises to any person engaged in preserving a place of
23historic significance built during the state's first 5 years of statehood and operating
24the place as a restaurant.
AB614,5,5
1(h) Notwithstanding the quota of a municipality, its governing body may, by a
2three-fourths vote of its members, issue a license to any restaurant existing on
3August 7, 1977, with a museum having permanent exhibition space open to the
4public at least 3 times the area of the restaurant, whether or not the museum existed
5on August 7, 1977.
AB614,5,76 (i) Notwithstanding the quota of the municipality, licenses issued under s.
7176.05 (21) (h), 1979 stats., remain valid and may be renewed by the municipality.
AB614,5,138 (j) Each municipality that issues "Class B" licenses shall issue a "Class B"
9license to any club which, on June 30, 1982, held a "Class B" license issued by the
10department under s. 176.05 (4a), 1979 stats. Licenses issued under this paragraph
11shall be renewed annually, upon application, unless revoked under s. 125.12. The
12quota of a municipality is permanently increased by the number of licenses it issues
13under this paragraph.
AB614,5,1514 (k) (intro.) Notwithstanding the quota of a town, the town board may issue a
15license to any of the following:
AB614,5,1716 1. An outdoor theater operated by a professional repertory theater company
17most of whose productions consist of classical drama.
AB614,5,1918 2. A conference center and restaurant used by the staff and patrons of a
19professional repertory theater company for lodging and meetings.
AB614,5,2120 (L) Notwithstanding the quota of a town, the town board may issue a license to
21a person operating a ski chalet on property owned by the state.
AB614,6,222 (m) Notwithstanding the quota of a municipality, its governing body may, by
23a three-fourths vote of its members, issue a license to any restaurant with a museum
24having permanent exhibition space open to the public at least 3 times the area of the

1restaurant if the building housing the museum was built during the first 8 years of
2statehood or earlier.
AB614,6,43 (n) Notwithstanding its quota, a village may issue a license for a hotel owned
4by an American Indian tribe.
AB614,6,75 (o) Notwithstanding its quota, a village may issue a license for a motel located
6on a lake which is the headwaters of a river which is part of the border between this
7state and Minnesota.
AB614,6,118 (p) Notwithstanding its quota, a town which borders on a lake, is adjacent to
9a 2nd class city and is located in a county with a population of 300,000 or more may
10issue a license for a tavern which is covered by a Class "B" license on December 8,
111987, if the tavern is not located within 500 feet of a lake.
AB614,6,1312 (q) Notwithstanding the quota of a municipality, its governing body may issue
13a license to persons conducting business at a racetrack, as defined in s. 562.01 (12).
AB614,6,1614 (r) Notwithstanding its quota, a village may issue a license to a post of a
15veteran's organization for a building that was rebuilt after being destroyed by a
16tornado.
AB614,6,1917 (s) Notwithstanding the quota of a municipality, its governing body may issue
18a license to a restaurant and public golf course situated on at least 200 acres of land,
19if the restaurant and public golf course are located adjacent to STH 57.
AB614,6,2320 (sm) Notwithstanding the quota of a town, the town board may issue a license
21to a person who owns a building located at the intersection of STH 11 and STH 80
22in Grant County, if the person had a license under sub. (3) issued to him or her
23previously.
AB614,7,3
1(t) 1. Notwithstanding the quota of a municipality, its governing body may
2issue a license to a restaurant that was established in 1949 and is located on STH
342 across from a town park.
AB614,7,54 2. No license may be issued under subd. 1. after July 29, 1995, but a license
5issued under subd. 1. before July 29, 1995, may be renewed.
AB614,7,96 (u) 1. Notwithstanding the quota of a municipality, its governing body may
7issue a license to a corporation that holds a Class "B" license, a "Class C" license and
8a "Class A" license since January 1, 1992, if the licenses are issued by that governing
9body.
AB614,7,1310 2. No license may be issued under subd. 1. after September 1, 1995, or 30 days
11after July 29, 1995, whichever is later, but a license issued under subd. 1. on or before
12September 1, 1995, or on or before 30 days after July 29, 1995, whichever is later, may
13be renewed.
AB614, s. 9 14Section 9. 1997 Wisconsin Act 27, section 9343 (1tv) is repealed.
AB614,7,1515 (End)
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