SB610: Bill Text

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2005 - 2006 LEGISLATURE

2005 Senate BILL 610

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 An Act to renumber and amend 125.51 (8); to amend 125.04 (3) (g) (intro.), 125.04 (5) (a) 5., 125.07 (1) (b) 5., 125.07 (3) (a) 6m., 125.10 (4), 125.17 (6) (a) 2., 125.185 (2) and (4), 125.51 (1) (a), 125.53 (1), 125.54 (1), 125.66 (4), 125.68 (1) (title), 125.68 (1) (a) (intro.), 125.68 (2), 125.68 (2m) (a), 125.68 (4) (c) (title), 1. and 3., 125.68 (5), 125.68 (8) (a) 3., 125.69 (1) (b) 1., 3. and 4., 125.69 (1) (c) 2. and 125.69 (6) (c); and to create 125.05 (1) (a) 3s., 125.51 (3s) and 125.51 (8) (a) 4. of the statutes; relating to: creating a new license authorizing retail sales of wine by certain restaurants for consumption on or off the premises where sold and 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 Section 1. 125.04 (3) (g) (intro.) of the statutes is amended to read:

SB610,3,4 125.04 (3) (g) Publication of application for license. (intro.) The municipal clerk shall publish each application for a Class "A", Class "B", "Class A", "Class B" or, "Class C", or "Class E" license, except licenses under ss. 125.26 (6) and 125.51 (10), prior to its issuance in a newspaper according to the following conditions:

SB610, s. 2 Section 2. 125.04 (5) (a) 5. of the statutes is amended to read:

SB610,3,14 125.04 (5) (a) 5. Have successfully completed within the 2 years prior to the date of application a responsible beverage server training course at any location that is offered by a technical college district and that conforms to curriculum guidelines specified by the technical college system board or a comparable training course that is approved by the department or the educational approval board. This subdivision does not apply to an applicant who held, or who was an agent appointed and approved under sub. (6) of a corporation or limited liability company that held, within the past 2 years, a Class "A", "Class A" or, "Class C", or "Class E" license or a Class "B" or "Class B" license or permit or a manager's or operator's license.

SB610, s. 3 Section 3. 125.05 (1) (a) 3s. of the statutes is created to read:

SB610,3,18 125.05 (1) (a) 3s. "Shall `Class E' licenses (restaurants) be issued for the retail sale of wine for consumption on the premises where sold and in unopened original containers to be consumed away from the premises where sold?"

SB610, s. 4 Section 4. 125.07 (1) (b) 5. of the statutes is amended to read:

SB610,3,23 125.07 (1) (b) 5. A person who holds a Class "A" license, a Class "B" license or permit, a "Class A" license or, a "Class B" license or permit, a "Class C" license, or a "Class E" license who commits a violation is subject to subd. 3. but is not subject to subd. 2. or s. 125.11.

SB610, s. 5 Section 5. 125.07 (3) (a) 6m. of the statutes is amended to read:

SB610,4,2 125.07 (3) (a) 6m. Premises operating under both a "Class C" or "Class E" license and a restaurant permit.

SB610, s. 6 Section 6. 125.10 (4) of the statutes is amended to read:

SB610,4,9 125.10 (4) Regulation of closed retail premises. A municipality may not prohibit the permittee, licensee, employees, salespersons, employees of wholesalers licensed under s. 125.28 (1) or 125.54 (1) or service personnel from being present on premises operated under a Class "A", "Class A" or , "Class C", or "Class E" license or under a Class "B" or "Class B" license or permit during hours when the premises are not open for business if those persons are performing job-related activities.

SB610, s. 7 Section 7. 125.17 (6) (a) 2. of the statutes is amended to read:

SB610,4,13 125.17 (6) (a) 2. Within the past 2 years, the person held a Class "A", "Class A" or, "Class C", or "Class E" license or a Class "B" or "Class B" license or permit or a manager's or operator's license.

SB610, s. 8 Section 8. 125.185 (2) and (4) of the statutes are amended to read:

SB610,4,18 125.185 (2) A provisional retail license may be issued only to a person who has applied for a Class "A", Class "B", "Class A", "Class B" or, "Class C" , or "Class E" license and authorizes only the activities that the type of retail license applied for authorizes.

SB610,4,23 (4) A provisional retail license expires 60 days after its issuance or when the Class "A", Class "B", "Class A", "Class B" or, "Class C", or "Class E" license is issued to the holder, whichever is sooner. The official who issued the provisional retail license may revoke the license if he or she discovers that the holder of the license made a false statement on the application.

SB610, s. 9 Section 9. 125.51 (1) (a) of the statutes is amended to read:

SB610,5,9 125.51 (1) (a) Every municipal governing body may grant and issue "Class A" and "Class B" licenses for retail sales of intoxicating liquor, and "Class C" and "Class E" licenses for retail sales of wine, from premises within the municipality to persons entitled to a license under this chapter as the issuing municipal governing body deems proper and may authorize an official or body of the municipality to issue temporary "Class B" licenses under sub. (10). No "Class B" license may be issued to a winery under sub. (3) (am) unless the winery has been issued a permit under s. 125.53 and the winery is capable of producing at least 5,000 gallons of wine per year in no more than 2 locations.

SB610, s. 10 Section 10. 125.51 (3s) of the statutes is created to read:

SB610,5,15 125.51 (3s) Retail "Class E" license. (a) A "Class E" license authorizes the retail sale of wine by the glass or in opened original bottles or other original containers for consumption on the premises where sold and also authorizes the retail sale of wine in unopened original bottles or other original containers in any quantity to be consumed off the premises where sold.

SB610,5,20 (b) Except as provided under s. 125.69, a "Class E" license may be issued to any person qualified under s. 125.04 (5), except a foreign corporation, a foreign limited liability company, or a person acting as an agent for or in the employ of another, for a restaurant that meets the requirements specified in sub. (3m) (c) for issuance of a "Class C" license.

SB610,5,22 (c) A "Class E" license shall particularly describe the premises for which it is issued and is not transferable, except as provided in s. 125.04 (12).

SB610,5,25 (d) The annual fee for a "Class E" license shall be determined by the municipal governing body issuing the license. The fee shall not exceed $100 and shall be the same for all "Class E" licenses.

SB610, s. 11 Section 11. 125.51 (8) of the statutes is renumbered 125.51 (8) (a) (intro.) and amended to read:

SB610,6,5 125.51 (8) (a) (intro.) Except in the case of hotels, no person may hold both, for the same premises or for connecting premises, a "Class A" license and either a any of the following:

SB610,6,6 1. A "Class B" license or permit, a .

SB610,6,7 2. A Class "B" license or permit or a .

SB610,6,8 3. A "Class C" license for the same premises or for connecting premises. Except.

SB610,6,12 (b) Except for hotels, if either type of a license or permit is issued for the same or connecting premises already covered by the other type of license or permit that causes a person to be in violation of par. (a), the license or permit last issued is void. If both licenses or permits are issued simultaneously, both are void.

SB610, s. 12 Section 12. 125.51 (8) (a) 4. of the statutes is created to read:

SB610,6,14 125.51 (8) (a) 4. A "Class E" license.

SB610, s. 13 Section 13. 125.53 (1) of the statutes is amended to read:

SB610,6,25 125.53 (1) The department shall issue only to a manufacturing winery in this state that holds a valid certificate issued under s. 73.03 (50) a winery permit authorizing the manufacture and bottling of wine on the premises covered by the permit for sale at wholesale to other licensees or permittees. A permittee under this section may offer on the premises taste samples of wine manufactured on the premises to persons who have attained the legal drinking age. A permittee under this section may also have either a "Class A" or, "Class B", or "Class E" license, but not both more than one such license. If a "Class A" or, "Class B" , or "Class E" liquor license has also been issued to the winery, the winery may offer the taste samples on the "Class A" or, "Class B", or "Class E" premises.

SB610, s. 14 Section 14. 125.54 (1) of the statutes is amended to read:

SB610,7,9 125.54 (1) Authorized activities. The department shall issue wholesalers' permits authorizing the permittee to sell intoxicating liquor at wholesale from the premises described in the permit. Except as provided under s. 125.69 (1) (b) 3., the permittee may not sell intoxicating liquor for consumption on the premises. If a wholesale permit is issued to a brewery that holds a "Class B" or "Class E" license, the permit shall authorize the wholesale sale of wine only. Possession of a permit under this section does not authorize the permittee to sell tax-free intoxicating liquor and wine brought into this state under s. 139.03 (5).

SB610, s. 15 Section 15. 125.66 (4) of the statutes is amended to read:

SB610,7,13 125.66 (4) Notwithstanding sub. (1) and s. 125.04 (1), a "Class A" licensee who sells intoxicating liquor to a "Class B" or "Class E" licensee for resale may be fined not more than $100.

SB610, s. 16 Section 16. 125.68 (1) (title) of the statutes is amended to read:

SB610,7,16 125.68 (1) (title) Managers' licenses; "Class B" and, "Class C", and "Class E" premises.

SB610, s. 17 Section 17. 125.68 (1) (a) (intro.) of the statutes is amended to read:

SB610,7,25 125.68 (1) (a) (intro.) If a municipal governing body elects to issue managers' licenses under s. 125.18, no person may manage premises operating under a "Class B" license or permit or a "Class C" or "Class E" license unless the person is the licensee or permittee, an agent of a corporation or limited liability company appointed as required by s. 125.04 (6) or the holder of a manager's license. A manager's license issued in respect to a vessel under s. 125.51 (5) (c) is valid outside the municipality that issues it. A person manages premises if that person has responsibility or authority for:

SB610, s. 18 Section 18. 125.68 (2) of the statutes is amended to read:

SB610,8,19 125.68 (2) Operators' licenses; "Class A", "Class B" or, "Class C", or "Class E" premises. Except as provided under s. 125.07 (3) (a) 10., no premises operated under a "Class A" or, "Class C", or "Class E" license or under a "Class B" license or permit may be open for business unless there is upon the premises either the licensee or permittee, the agent named in the license or permit if the licensee or permittee is a corporation or limited liability company, or some person who has an operator's license and who is responsible for the acts of all persons selling or serving any intoxicating liquor to customers. An operator's license issued in respect to a vessel under s. 125.51 (5) (c) is valid outside the municipality that issues it. For the purpose of this subsection, any person holding a manager's license issued under s. 125.18 or any member of the licensee's or permittee's immediate family who has attained the age of 18 shall be considered the holder of an operator's license. No person, including a member of the licensee's or permittee's immediate family, other than the licensee, permittee or agent may serve or sell alcohol beverages in any place operated under a "Class A" or, "Class C", or "Class E" license or under a "Class B" license or permit unless he or she has an operator's license or is at least 18 years of age and is under the immediate supervision of the licensee, permittee or agent or a person holding an operator's license, who is on the premises at the time of the service.

SB610, s. 19 Section 19. 125.68 (2m) (a) of the statutes is amended to read:

SB610,8,22 125.68 (2m) (a) No person may allow another to use his or her "Class A" or, "Class C", or "Class E" license or "Class B" license or permit to sell alcohol beverages.

SB610, s. 20 Section 20. 125.68 (4) (c) (title), 1. and 3. of the statutes are amended to read:

SB610,9,6 125.68 (4) (c) (title) "Class B" and, "Class C", and "Class E" retailers. 1. No premises for which a "Class B" license or permit or a "Class C" or "Class E" license has been issued may remain open between the hours of 2 a.m. and 6 a.m., except as otherwise provided in this subdivision and subd. 4. On January 1 premises operating under a "Class B" license or permit or a "Class E" license are not required to close. On Saturday and Sunday, no premises may remain open between 2:30 a.m. and 6 a.m. This subdivision does not apply to a "Class B" license issued to a winery under s. 125.51 (3) (am).

SB610,9,12 3. Between 12 midnight and 6 a.m. no person may sell intoxicating liquor on "Class B" or "Class E" licensed premises in an original unopened package, container or bottle or for consumption away from the premises. A municipal governing body may, by ordinance, impose more restrictive hours than are provided in this subdivision. This subdivision does not apply to a "Class B" license issued to a winery under s. 125.51 (3) (am).

SB610, s. 21 Section 21. 125.68 (5) of the statutes is amended to read:

SB610,9,19 125.68 (5) Restaurant sanitation rules. No applicant may obtain a "Class B" license or permit or a "Class C" or "Class E" license unless the premises complies with the rules promulgated by the department of health and family services governing sanitation in restaurants. However, the department of health and family services may not restrict the serving of cheese without charge in individual portions to customers as permitted by s. 254.61 (5).

SB610, s. 22 Section 22. 125.68 (8) (a) 3. of the statutes is amended to read:

SB610,9,23 125.68 (8) (a) 3. Possessing diluted intoxicating liquor or refilled original containers on any premises covered by a "Class A" or , "Class C", or "Class E" license or "Class B" license or permit.

SB610, s. 23 Section 23. 125.69 (1) (b) 1., 3. and 4. of the statutes are amended to read:

SB610,10,6 125.69 (1) (b) 1. Except as provided under subds. 2. to 4., no intoxicating liquor manufacturer, rectifier, or wholesaler may hold any direct or indirect interest in any "Class B" license or permit or establishment or "Class C" or "Class E" license or establishment and no "Class B" licensee or permittee or "Class C" or "Class E" licensee may hold any direct or indirect interest in a wholesale permit or establishment.

SB610,10,9 3. A brewer may hold both a "Class B" license for the sale of intoxicating liquor, or a "Class E" license for the sale of wine, on brewery premises and a wholesaler's permit for the sale of wine only issued under s. 125.54.

SB610,10,12 4. A winery that has a permit under s. 125.53 may have an ownership interest in a "Class B" license issued under s. 125.51 (3) (am) or a "Class E" license, as provided under s. 125.53 (1).

SB610, s. 24 Section 24. 125.69 (1) (c) 2. of the statutes is amended to read:

SB610,10,15 125.69 (1) (c) 2. A licensee who was issued a "Class B" license under s. 125.51 (3) (am) or a "Class E" license, as provided under s. 125.53 (1).

SB610, s. 25 Section 25. 125.69 (6) (c) of the statutes is amended to read:

SB610,10,20 125.69 (6) (c) Notwithstanding par. (b), a "Class B" or "Class E" licensee who purchases intoxicating liquor from a "Class A" licensee for resale or who possesses intoxicating liquor purchased from a "Class A" licensee for resale may be fined not more than $100.

SB610,10,21 (End)