ARG:kjf:pg
2005 - 2006 LEGISLATURE
February 20, 2006 - Introduced by Senator Harsdorf, cosponsored by
Representatives Bies and F. Lasee. Referred to Committee on Veterans,
Homeland Security, Military Affairs, Small Business and Government
Reform.
SB610,1,9 1An Act to renumber and amend 125.51 (8); to amend 125.04 (3) (g) (intro.),
2125.04 (5) (a) 5., 125.07 (1) (b) 5., 125.07 (3) (a) 6m., 125.10 (4), 125.17 (6) (a) 2.,
3125.185 (2) and (4), 125.51 (1) (a), 125.53 (1), 125.54 (1), 125.66 (4), 125.68 (1)
4(title), 125.68 (1) (a) (intro.), 125.68 (2), 125.68 (2m) (a), 125.68 (4) (c) (title), 1.
5and 3., 125.68 (5), 125.68 (8) (a) 3., 125.69 (1) (b) 1., 3. and 4., 125.69 (1) (c) 2.
6and 125.69 (6) (c); and to create 125.05 (1) (a) 3s., 125.51 (3s) and 125.51 (8)
7(a) 4. of the statutes; relating to: creating a new license authorizing retail sales
8of wine by certain restaurants for consumption on or off the premises where sold
9and the penalty for certain alcohol beverage violations.
Analysis by the Legislative Reference Bureau
Under current law, alcohol beverages are generally distributed to consumers
under a three-tier distribution system: a manufacturer may sell only to a wholesaler
or rectifier (a person who blends, refines, or purifies distilled spirits or wines); a
wholesaler or rectifier may sell only to a wholesaler or retailer; and a retailer may
sell only to a consumer. With specific exceptions, no person may sell outside the
three-tier system and no person may sell alcohol beverages to a consumer unless the
seller possesses a license or permit authorizing the sale. A "Class A" license

authorizes the retail sale of intoxicating liquor, including wine, for consumption off
the licensed premises. A "Class B" license authorizes the retail sale of intoxicating
liquor for consumption on or off the licensed premises, which authorization is subject
to certain limitations, some of which depend on whether the issuing municipality has
adopted an ordinance related to "Class B" licenses. A "Class C" license authorizes
the retail sale of wine by the glass or in an opened original container for consumption
on the licensed premises. A "Class C" license may only be issued for a restaurant in
which the sale of alcohol beverages accounts for less than 50 percent of gross receipts
and that either does not have a barroom or has a barroom in which wine is the only
intoxicating liquor sold. Each of these licenses is issued by a municipality.
This bill creates a "Class E" license authorizing the retail sale of wine by the
glass or in an opened original bottle or other original container for consumption on
the licensed premises or in unopened original bottles or other original containers in
any quantity to be consumed off the licensed premises. A "Class E" license may only
be issued to a restaurant that meets the requirements for issuance of a "Class C"
license. The license is issued by municipalities and the annual fee for the license is
determined by each issuing municipality, but may not exceed $100. The restrictions
and requirements applicable under current law to either "Class C" licenses or "Class
B" licenses are also generally applicable to "Class E" licenses.
Under current law, no person (including a licensee or permittee) may procure
for, sell, dispense, or give away alcohol beverages to any individual who has not
attained the legal drinking age of 21 years (underage person) or who is not
accompanied by his or her parent, guardian, or spouse who has reached the legal
drinking age. Current law also prohibits an adult from intentionally encouraging or
contributing to the illegal provision of alcohol beverages to an underage person and
from knowingly permitting or failing to take action to prevent the illegal
consumption of alcohol beverages by an underage person on premises owned by the
adult or under the adult's control. A person who violates any of these prohibitions
is subject to various penalties, ranging from a forfeiture of $500 to a fine of $10,000
and imprisonment for not more than nine months, as well as possible driver's license
suspension and alcohol beverage license suspension. However, a Class "A," Class
"B," "Class A," or "Class B" licensee violating any of these prohibitions is subject only
to alcohol beverage license suspension. The bill provides that a "Class C" or "Class
E" licensee violating any of these prohibitions is also subject only to alcohol beverage
license suspension.
For further information see the state and local 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:
SB610, s. 1 1Section 1. 125.04 (3) (g) (intro.) of the statutes is amended to read:
SB610,3,4
1125.04 (3) (g) Publication of application for license. (intro.) The municipal
2clerk shall publish each application for a Class "A", Class "B", "Class A", "Class B"
3or, "Class C", or "Class E" license, except licenses under ss. 125.26 (6) and 125.51 (10),
4prior to its issuance in a newspaper according to the following conditions:
SB610, s. 2 5Section 2. 125.04 (5) (a) 5. of the statutes is amended to read:
SB610,3,146 125.04 (5) (a) 5. Have successfully completed within the 2 years prior to the
7date of application a responsible beverage server training course at any location that
8is offered by a technical college district and that conforms to curriculum guidelines
9specified by the technical college system board or a comparable training course that
10is approved by the department or the educational approval board. This subdivision
11does not apply to an applicant who held, or who was an agent appointed and approved
12under sub. (6) of a corporation or limited liability company that held, within the past
132 years, a Class "A", "Class A" or, "Class C", or "Class E" license or a Class "B" or
14"Class B" license or permit or a manager's or operator's license.
SB610, s. 3 15Section 3. 125.05 (1) (a) 3s. of the statutes is created to read:
SB610,3,1816 125.05 (1) (a) 3s. "Shall `Class E' licenses (restaurants) be issued for the retail
17sale of wine for consumption on the premises where sold and in unopened original
18containers to be consumed away from the premises where sold?"
SB610, s. 4 19Section 4. 125.07 (1) (b) 5. of the statutes is amended to read:
SB610,3,2320 125.07 (1) (b) 5. A person who holds a Class "A" license, a Class "B" license or
21permit, a "Class A" license or, a "Class B" license or permit, a "Class C" license, or a
22"Class E" license
who commits a violation is subject to subd. 3. but is not subject to
23subd. 2. or s. 125.11.
SB610, s. 5 24Section 5. 125.07 (3) (a) 6m. of the statutes is amended to read:
SB610,4,2
1125.07 (3) (a) 6m. Premises operating under both a "Class C" or "Class E"
2license and a restaurant permit.
SB610, s. 6 3Section 6. 125.10 (4) of the statutes is amended to read:
SB610,4,94 125.10 (4) Regulation of closed retail premises. A municipality may not
5prohibit the permittee, licensee, employees, salespersons, employees of wholesalers
6licensed under s. 125.28 (1) or 125.54 (1) or service personnel from being present on
7premises operated under a Class "A", "Class A" or , "Class C", or "Class E" license or
8under a Class "B" or "Class B" license or permit during hours when the premises are
9not open for business if those persons are performing job-related activities.
SB610, s. 7 10Section 7. 125.17 (6) (a) 2. of the statutes is amended to read:
SB610,4,1311 125.17 (6) (a) 2. Within the past 2 years, the person held a Class "A", "Class A"
12or, "Class C", or "Class E" license or a Class "B" or "Class B" license or permit or a
13manager's or operator's license.
SB610, s. 8 14Section 8. 125.185 (2) and (4) of the statutes are amended to read:
SB610,4,1815 125.185 (2) A provisional retail license may be issued only to a person who has
16applied for a Class "A", Class "B", "Class A", "Class B" or, "Class C" , or "Class E"
17license and authorizes only the activities that the type of retail license applied for
18authorizes.
SB610,4,23 19(4) A provisional retail license expires 60 days after its issuance or when the
20Class "A", Class "B", "Class A", "Class B" or, "Class C", or "Class E" license is issued
21to the holder, whichever is sooner. The official who issued the provisional retail
22license may revoke the license if he or she discovers that the holder of the license
23made a false statement on the application.
SB610, s. 9 24Section 9. 125.51 (1) (a) of the statutes is amended to read:
SB610,5,9
1125.51 (1) (a) Every municipal governing body may grant and issue "Class A"
2and "Class B" licenses for retail sales of intoxicating liquor, and "Class C" and "Class
3E"
licenses for retail sales of wine, from premises within the municipality to persons
4entitled to a license under this chapter as the issuing municipal governing body
5deems proper and may authorize an official or body of the municipality to issue
6temporary "Class B" licenses under sub. (10). No "Class B" license may be issued to
7a winery under sub. (3) (am) unless the winery has been issued a permit under s.
8125.53 and the winery is capable of producing at least 5,000 gallons of wine per year
9in no more than 2 locations.
SB610, s. 10 10Section 10. 125.51 (3s) of the statutes is created to read:
SB610,5,1511 125.51 (3s) Retail "Class E" license. (a) A "Class E" license authorizes the
12retail sale of wine by the glass or in opened original bottles or other original
13containers for consumption on the premises where sold and also authorizes the retail
14sale of wine in unopened original bottles or other original containers in any quantity
15to be consumed off the premises where sold.
SB610,5,2016 (b) Except as provided under s. 125.69, a "Class E" license may be issued to any
17person qualified under s. 125.04 (5), except a foreign corporation, a foreign limited
18liability company, or a person acting as an agent for or in the employ of another, for
19a restaurant that meets the requirements specified in sub. (3m) (c) for issuance of a
20"Class C" license.
SB610,5,2221 (c) A "Class E" license shall particularly describe the premises for which it is
22issued and is not transferable, except as provided in s. 125.04 (12).
SB610,5,2523 (d) The annual fee for a "Class E" license shall be determined by the municipal
24governing body issuing the license. The fee shall not exceed $100 and shall be the
25same for all "Class E" licenses.
SB610, s. 11
1Section 11. 125.51 (8) of the statutes is renumbered 125.51 (8) (a) (intro.) and
2amended to read:
SB610,6,53 125.51 (8) (a) (intro.) Except in the case of hotels, no person may hold both, for
4the same premises or for connecting premises,
a "Class A" license and either a any
5of the following:
SB610,6,6 61. A "Class B" license or permit, a .
SB610,6,7 72. A Class "B" license or permit or a .
SB610,6,8 83. A "Class C" license for the same premises or for connecting premises. Except.
SB610,6,12 9(b) Except for hotels, if either type of a license or permit is issued for the same
10or connecting premises already covered by the other type of license or permit
that
11causes a person to be in violation of par. (a)
, the license or permit last issued is void.
12If both licenses or permits are issued simultaneously, both are void.
SB610, s. 12 13Section 12. 125.51 (8) (a) 4. of the statutes is created to read:
SB610,6,1414 125.51 (8) (a) 4. A "Class E" license.
SB610, s. 13 15Section 13. 125.53 (1) of the statutes is amended to read:
SB610,6,2516 125.53 (1) The department shall issue only to a manufacturing winery in this
17state that holds a valid certificate issued under s. 73.03 (50) a winery permit
18authorizing the manufacture and bottling of wine on the premises covered by the
19permit for sale at wholesale to other licensees or permittees. A permittee under this
20section may offer on the premises taste samples of wine manufactured on the
21premises to persons who have attained the legal drinking age. A permittee under
22this section may also have either a "Class A" or, "Class B", or "Class E" license, but
23not both more than one such license. If a "Class A" or, "Class B" , or "Class E" liquor
24license has also been issued to the winery, the winery may offer the taste samples on
25the "Class A" or, "Class B", or "Class E" premises.
SB610, s. 14
1Section 14. 125.54 (1) of the statutes is amended to read:
SB610,7,92 125.54 (1) Authorized activities. The department shall issue wholesalers'
3permits authorizing the permittee to sell intoxicating liquor at wholesale from the
4premises described in the permit. Except as provided under s. 125.69 (1) (b) 3., the
5permittee may not sell intoxicating liquor for consumption on the premises. If a
6wholesale permit is issued to a brewery that holds a "Class B" or "Class E" license,
7the permit shall authorize the wholesale sale of wine only. Possession of a permit
8under this section does not authorize the permittee to sell tax-free intoxicating
9liquor and wine brought into this state under s. 139.03 (5).
SB610, s. 15 10Section 15. 125.66 (4) of the statutes is amended to read:
SB610,7,1311 125.66 (4) Notwithstanding sub. (1) and s. 125.04 (1), a "Class A" licensee who
12sells intoxicating liquor to a "Class B" or "Class E" licensee for resale may be fined
13not more than $100.
SB610, s. 16 14Section 16. 125.68 (1) (title) of the statutes is amended to read:
SB610,7,1615 125.68 (1) (title) Managers' licenses; "Class B" and, "Class C", and "Class E"
16premises.
SB610, s. 17 17Section 17. 125.68 (1) (a) (intro.) of the statutes is amended to read:
SB610,7,2518 125.68 (1) (a) (intro.) If a municipal governing body elects to issue managers'
19licenses under s. 125.18, no person may manage premises operating under a "Class
20B" license or permit or a "Class C" or "Class E" license unless the person is the
21licensee or permittee, an agent of a corporation or limited liability company
22appointed as required by s. 125.04 (6) or the holder of a manager's license. A
23manager's license issued in respect to a vessel under s. 125.51 (5) (c) is valid outside
24the municipality that issues it. A person manages premises if that person has
25responsibility or authority for:
SB610, s. 18
1Section 18. 125.68 (2) of the statutes is amended to read:
SB610,8,192 125.68 (2) Operators' licenses; "Class A", "Class B" or, "Class C", or "Class E"
3premises.
Except as provided under s. 125.07 (3) (a) 10., no premises operated under
4a "Class A" or, "Class C", or "Class E" license or under a "Class B" license or permit
5may be open for business unless there is upon the premises either the licensee or
6permittee, the agent named in the license or permit if the licensee or permittee is a
7corporation or limited liability company, or some person who has an operator's
8license and who is responsible for the acts of all persons selling or serving any
9intoxicating liquor to customers. An operator's license issued in respect to a vessel
10under s. 125.51 (5) (c) is valid outside the municipality that issues it. For the purpose
11of this subsection, any person holding a manager's license issued under s. 125.18 or
12any member of the licensee's or permittee's immediate family who has attained the
13age of 18 shall be considered the holder of an operator's license. No person, including
14a member of the licensee's or permittee's immediate family, other than the licensee,
15permittee or agent may serve or sell alcohol beverages in any place operated under
16a "Class A" or, "Class C", or "Class E" license or under a "Class B" license or permit
17unless he or she has an operator's license or is at least 18 years of age and is under
18the immediate supervision of the licensee, permittee or agent or a person holding an
19operator's license, who is on the premises at the time of the service.
SB610, s. 19 20Section 19. 125.68 (2m) (a) of the statutes is amended to read:
SB610,8,2221 125.68 (2m) (a) No person may allow another to use his or her "Class A" or,
22"Class C", or "Class E" license or "Class B" license or permit to sell alcohol beverages.
SB610, s. 20 23Section 20. 125.68 (4) (c) (title), 1. and 3. of the statutes are amended to read:
SB610,9,624 125.68 (4) (c) (title) "Class B" and, "Class C", and "Class E" retailers. 1. No
25premises for which a "Class B" license or permit or a "Class C" or "Class E" license

1has been issued may remain open between the hours of 2 a.m. and 6 a.m., except as
2otherwise provided in this subdivision and subd. 4. On January 1 premises operating
3under a "Class B" license or permit or a "Class E" license are not required to close.
4On Saturday and Sunday, no premises may remain open between 2:30 a.m. and 6
5a.m. This subdivision does not apply to a "Class B" license issued to a winery under
6s. 125.51 (3) (am).
SB610,9,127 3. Between 12 midnight and 6 a.m. no person may sell intoxicating liquor on
8"Class B" or "Class E" licensed premises in an original unopened package, container
9or bottle or for consumption away from the premises. A municipal governing body
10may, by ordinance, impose more restrictive hours than are provided in this
11subdivision. This subdivision does not apply to a "Class B" license issued to a winery
12under s. 125.51 (3) (am).
SB610, s. 21 13Section 21. 125.68 (5) of the statutes is amended to read:
SB610,9,1914 125.68 (5) Restaurant sanitation rules. No applicant may obtain a "Class B"
15license or permit or a "Class C" or "Class E" license unless the premises complies with
16the rules promulgated by the department of health and family services governing
17sanitation in restaurants. However, the department of health and family services
18may not restrict the serving of cheese without charge in individual portions to
19customers as permitted by s. 254.61 (5).
SB610, s. 22 20Section 22. 125.68 (8) (a) 3. of the statutes is amended to read:
SB610,9,2321 125.68 (8) (a) 3. Possessing diluted intoxicating liquor or refilled original
22containers on any premises covered by a "Class A" or , "Class C", or "Class E" license
23or "Class B" license or permit.
SB610, s. 23 24Section 23. 125.69 (1) (b) 1., 3. and 4. of the statutes are amended to read:
SB610,10,6
1125.69 (1) (b) 1. Except as provided under subds. 2. to 4., no intoxicating liquor
2manufacturer, rectifier, or wholesaler may hold any direct or indirect interest in any
3"Class B" license or permit or establishment or "Class C" or "Class E" license or
4establishment and no "Class B" licensee or permittee or "Class C" or "Class E"
5licensee may hold any direct or indirect interest in a wholesale permit or
6establishment.
SB610,10,97 3. A brewer may hold both a "Class B" license for the sale of intoxicating liquor,
8or a "Class E" license for the sale of wine,
on brewery premises and a wholesaler's
9permit for the sale of wine only issued under s. 125.54.
SB610,10,1210 4. A winery that has a permit under s. 125.53 may have an ownership interest
11in a "Class B" license issued under s. 125.51 (3) (am) or a "Class E" license, as
12provided under s. 125.53 (1)
.
SB610, s. 24 13Section 24. 125.69 (1) (c) 2. of the statutes is amended to read:
SB610,10,1514 125.69 (1) (c) 2. A licensee who was issued a "Class B" license under s. 125.51
15(3) (am) or a "Class E" license, as provided under s. 125.53 (1).
SB610, s. 25 16Section 25. 125.69 (6) (c) of the statutes is amended to read:
SB610,10,2017 125.69 (6) (c) Notwithstanding par. (b), a "Class B" or "Class E" licensee who
18purchases intoxicating liquor from a "Class A" licensee for resale or who possesses
19intoxicating liquor purchased from a "Class A" licensee for resale may be fined not
20more than $100.
SB610,10,2121 (End)
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