The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB787, s. 1 1Section 1. 125.01 of the statutes is amended to read:
AB787,3,9 2125.01 Legislative intent. This chapter shall be construed as an enactment
3of statewide concern for the purpose of providing a uniform regulation of the sale of
4alcohol beverages
of the legislature's support for the 3-tier system for alcohol
5beverages production, distribution, and sale that, through uniform statewide
6regulation, provides this state regulatory authority over the production, storage,
7distribution, transportation, sale, and consumption of alcohol beverages by and to its
8citizens, for the benefit of the public health and welfare and this state's economic
9stability
.
AB787, s. 2 10Section 2. 125.25 (1) of the statutes is amended to read:
AB787,4,211 125.25 (1) Every municipal governing body may issue Class "A" licenses for the
12sale of fermented malt beverages from premises within the municipality. A Subject
13to s. 125.34 (5) and (6), a
Class "A" license authorizes retail sales of fermented malt
14beverages for consumption off the premises where sold and in original packages,

1containers and bottles. A license may be issued after July 1. That license shall expire
2on the following June 30.
AB787, s. 3 3Section 3. 125.26 (1) of the statutes is amended to read:
AB787,4,124 125.26 (1) Every municipal governing body may issue Class "B" licenses for the
5sale of fermented malt beverages from premises within the municipality and may
6authorize an official or body of the municipality to issue temporary Class "B" licenses
7under sub. (6). A Subject to s. 125.34 (5) and (6), a Class "B" license authorizes retail
8sales of fermented malt beverages to be consumed either on the premises where sold
9or off the premises. A license may be issued after July 1. That license shall expire
10on the following June 30. Persons holding a Class "B" license may sell beverages
11containing less than 0.5% of alcohol by volume without obtaining a license under s.
1266.0433 (1).
AB787, s. 4 13Section 4. 125.28 (1) of the statutes is amended to read:
AB787,4,2414 125.28 (1) Every municipal governing body may issue licenses to wholesalers
15for the sale of fermented malt beverages from premises within the municipality. A,
16which premises shall comply with the requirements under s. 125.34 (2). Subject to
17s. 125.34, a
wholesaler's license authorizes sales of fermented malt beverages only
18in original packages or containers to retailers or wholesalers, not to be consumed in
19or about the premises where sold. In the case of a foreign corporation or foreign
20limited liability company whose wholesale premises is located outside of this state,
21the wholesaler's license shall be issued by the governing body of the municipality in
22which some part of the wholesaler's business is conducted in this state. No additional
23license or permit is required for the solicitation of orders for sale to or by licensed
24wholesalers.
AB787, s. 5 25Section 5. 125.29 (3) of the statutes is amended to read:
AB787,5,5
1125.29 (3) Activities. A Subject to s. 125.34 (2), a brewer may manufacture,
2possess and store fermented malt beverages on the brewery premises and transport
3fermented malt beverages between the brewery premises and any depot or
4warehouse maintained by the brewer for which the brewer has a wholesaler's license
5issued under s. 125.28.
AB787, s. 6 6Section 6. 125.30 (1) of the statutes is amended to read:
AB787,5,157 125.30 (1) The department shall issue out-of-state shippers' permits which,
8except as provided in s. 125.34 (6) (c),
authorize the permittee to ship fermented malt
9beverages only to holders of a wholesaler's license issued under s. 125.28. No person
10may receive fermented malt beverages in this state which have been directly shipped
11from outside this state by any person other than the holder of a permit issued under
12this section. All Subject to s. 125.34 (2) and (6) (c), all shipments of fermented malt
13beverages to a wholesaler of fermented malt beverages in this state, whether shipped
14to the wholesaler from inside this state or from outside this state, shall be unloaded
15in and distributed from the wholesaler's warehouse in this state.
AB787, s. 7 16Section 7. 125.31 (2) and (3) (intro.) of the statutes are amended to read:
AB787,5,2117 125.31 (2) A Subject to s. 125.34, a brewer may own, maintain or operate
18depots and warehouses from which sales of fermented malt beverages, not for
19consumption in or about the premises where sold, may be made in original packages
20to retailers and wholesalers. A separate wholesaler's license is required for each
21depot or warehouse owned, maintained or operated.
AB787,5,24 22(3) (intro.) A Subject to ss. 125.29 (4) and 125.34, a brewer may sell fermented
23malt beverages in the original packages or containers, not to be consumed on the
24premises where sold:
AB787, s. 8 25Section 8. 125.33 (11) (a) of the statutes is amended to read:
AB787,6,5
1125.33 (11) (a) No Subject to s. 125.34 (3), no wholesaler who holds a retail
2license issued under this chapter may sell a brand of fermented malt beverages to
3another retail licensee unless the wholesaler has an agreement for general wholesale
4distribution of that brand of fermented malt beverages with the brewer, brewer's
5agent or holder of an out-of-state shipper's permit supplying that brand.
AB787, s. 9 6Section 9. 125.34 of the statutes is created to read:
AB787,6,8 7125.34 Distribution restrictions on wholesalers, brewers, and
8out-of-state shippers.
(1) In this section:
AB787,6,159 (a) "Brand" means any word, name, group of letters, symbol, or combination
10thereof, including the name of the brewer or out-of-state shipper if the brewer's or
11out-of-state shipper's name is also a significant part of the product name, adopted
12and used by a brewer or out-of-state shipper to identify a specific fermented malt
13beverage product and to distinguish that product from other fermented malt
14beverages produced by that brewer or out-of-state shipper or other brewers or
15out-of-state shippers.
AB787,6,1616 (b) "Brewer" means a permittee under s. 125.29.
AB787,6,2017 (c) "Designated sales territory" means the geographical area identified in a
18written agreement between a wholesaler and a brewer or out-of-state shipper under
19which the wholesaler is authorized to distribute one or more brands of fermented
20malt beverages supplied by the brewer or out-of-state shipper.
AB787,6,2121 (d) "Out-of-state shipper" means a permittee under s. 125.30.
AB787,6,2322 (e) "Retailer" means any person holding a Class "A" license or a Class "B"
23license or permit.
AB787,6,2524 (f) "Retail premises" means the premises described in a Class "A" license or a
25Class "B" license or permit.
AB787,7,2
1(g) "Wholesaler" means a licensee under s. 125.28 and includes a brewer or
2out-of-state shipper that holds a wholesaler's license under s. 125.28.
AB787,7,9 3(2) (a) No fermented malt beverages may be sold, transported, or delivered to
4a retailer unless, prior to such sale, transport, or delivery, the fermented malt
5beverages are first unloaded at and distributed from a wholesaler's warehouse
6premises covered by both a wholesaler's license issued under s. 125.28 and an alcohol
7beverage warehouse permit issued under s. 125.19, which premises shall be in this
8state and shall be a physically separate location from any retail premises or brewery
9premises.
AB787,7,1410 (b) 1. Notwithstanding sub. (1) (b), in this paragraph, "brewer" means a brewer
11that, together with the fermented malt beverages manufactured during the same
12year by all producers identified in s. 125.31 (1) (a) 1. a. to e., manufactures less than
13100,000 barrels of fermented malt beverages in a calendar year in any location,
14whether in this state or outside this state.
AB787,7,1915 2. Notwithstanding par. (a), a brewer may be issued a wholesaler's license for
16wholesale premises located on brewery premises. A brewer issued a wholesaler's
17license under this paragraph may not sell or ship more than 30,000 barrels of
18fermented malt beverages in any calendar year to retailers from wholesale premises
19located on brewery premises.
AB787,7,2220 (c) Notwithstanding par. (a), a brewer may be issued a wholesaler's license for
21wholesale premises located on brewery premises if, from these wholesale premises,
22the brewer sells or ships fermented malt beverages only to other wholesalers.
AB787,8,6 23(3) (a) A wholesaler may not sell, transport, or deliver any brand of fermented
24malt beverages unless the wholesaler has entered into a written agreement with the
25brewer or out-of-state shipper supplying the brand that grants to the wholesaler

1distribution rights for the brand and identifies the designated sales territory for
2which such distribution rights are granted, including the precise geographical area
3comprising the designated sales territory. A brewer or out-of-state shipper may not,
4in any agreement under this paragraph, grant to more than one wholesaler
5distribution rights for the same brand in the same designated sales territory or in
6any part of the same designated sales territory.
AB787,8,107 (b) Within a wholesaler's designated sales territory for any brand of fermented
8malt beverages, the wholesaler may not refuse to sell the brand of fermented malt
9beverages, or refuse to offer reasonable service related to the sale of the brand of
10fermented malt beverages, to any retailer.
AB787,8,13 11(4) No wholesaler may sell, transport, or deliver, or cause to be sold,
12transported, or delivered, any brand of fermented malt beverages to any of the
13following:
AB787,8,2114 (a) Any retailer located outside the wholesaler's designated sales territory for
15the brand. This paragraph does not apply if another wholesaler that has been
16granted distribution rights for the brand in the designated sales territory where the
17sale, transportation, or delivery occurs is unable to service this designated sales
18territory and the brewer or out-of-state shipper granting distribution rights has,
19notwithstanding sub. (3) (a), given consent for the sale, transportation, or delivery,
20which consent shall be limited to the time period that another wholesaler is unable
21to service this designated sales territory.
AB787,8,2422 (b) Any person, other than another wholesaler, that the wholesaler knows or
23should know will transport the product for resale in a designated sales territory for
24which another wholesaler has been granted distribution rights for the brand.
AB787,9,6
1(5) Deliveries of fermented malt beverages to retailers may be made only by
2wholesalers and shall be made to retailers only at their retail premises. No retailer
3may transport fermented malt beverages from one retail premises to another retail
4premises for purposes of selling the fermented malt beverages at the other retail
5premises unless both retail premises are operated by a brewer holding the retail
6licenses.
AB787,9,11 7(6) (a) Except as provided in pars. (b) and (c) and ss. 125.06 (1) and 125.31 (1)
8and (3), a brewer or out-of-state shipper may sell, transport, and deliver fermented
9malt beverages only to a wholesaler, which may be the brewer or out-of-state
10shipper itself if, in its activities as a wholesaler, it complies with the requirements
11under subs. (2) to (5).
AB787,9,1712 (b) A brewer or out-of-state shipper that holds a Class "A" license or Class "B"
13license may sell fermented malt beverages to persons other than licensees and
14permittees in accordance with the terms of the license, the provisions of s. 125.31,
15and the applicable provisions of this chapter relating to retailers. Subsections (2) to
16(5) do not apply with respect to fermented malt beverages provided by a brewer to
17any retail premises for which the brewer holds the retail license.
AB787,9,2118 (c) A brewer that holds an out-of-state shipper's permit for premises located
19in another state used for the manufacture of fermented malt beverages may ship
20fermented malt beverages from those premises to any brewery premises of the
21brewer in this state.
AB787, s. 10 22Section 10 . Initial applicability.
AB787,9,2423 (1) This act first applies on the first day of the 7th month beginning after the
24effective date of this subsection with respect to any person holding a wholesaler's

1license issued under section 125.28 of the statutes immediately prior to the effective
2date of this subsection.
AB787,10,33 (End)
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