LRB-0829/1
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2013 - 2014 LEGISLATURE
February 10, 2014 - Introduced by Senator Grothman, cosponsored by
Representatives Murphy, Hintz, Kleefisch, Clark, Kooyenga, Ohnstad,
Skowronski and Pridemore. Referred to Committee on Economic
Development and Local Government.
SB586,1,3 1An Act to renumber and amend 125.51 (4) (v) 1.; and to create 125.51 (4) (v)
21. a. of the statutes; relating to: municipal quotas for retail intoxicating liquor
3licenses.
Analysis by the Legislative Reference Bureau
Current law prohibits a person from selling alcohol beverages at retail unless
the seller possesses a license or permit authorizing the sale. A "Class B" license
authorizes the retail sale of intoxicating liquor for consumption on the licensed
premises and, depending on the type of intoxicating liquor and whether a municipal
ordinance has been adopted, may also authorize the retail sale of intoxicating liquor
for consumption off the licensed premises, subject to certain limitations. Current law
imposes a quota on the number of "Class B" licenses that a municipality may issue.
This quota is generally determined by a formula based on the number of licenses
previously issued by the municipality and the municipality's population. Current
law provides quota exceptions for a full-service restaurant that has a seating
capacity of 300 or more persons and for a hotel that has 50 or more rooms and has
a restaurant or banquet room meeting certain criteria. Current law also provides a
quota exception for certain opera houses and theaters, but a "Class B" license issued
under this exception authorizes the sale of intoxicating liquor only for consumption
on the premises and only in connection with ticketed performances.
This bill modifies the quota exception for most full-service restaurants. The
bill provides a quota exception for a full-service restaurant regardless of seating
capacity, but creates a definition of "full-service restaurant" for purposes of the bill

that limits the exception to an establishment where meals are prepared, served, and
sold for consumption on the premises and in which the sale of alcohol beverages
accounts for 50 percent or less of the establishment's gross receipts. In addition, a
"Class B" license issued under this exception authorizes the sale of intoxicating
liquor only for consumption on the premises. The bill prohibits a person holding a
"Class B" license, other than one issued under this exception, from surrendering that
license and applying for a new license under this exception.
For further information see the 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:
SB586,1 1Section 1. 125.51 (4) (v) 1. of the statutes is renumbered 125.51 (4) v. 1. b. and
2amended to read:
SB586,2,113 125.51 (4) (v) 1. b. A full-service restaurant that has a seating capacity of 300
4or more persons
. Notwithstanding sub. (3) (a) and (b), a "Class B" license issued
5under this subdivision authorizes the retail sale of intoxicating liquor only for
6consumption on the premises where sold. If a "Class B" license issued under this
7subdivision is surrendered to the issuing municipality, revoked, or not renewed, the
8municipality may not reissue the license to any applicant other than a full-service
9restaurant. A person that holds a "Class B" license, other than one issued under this
10subdivision, that is surrendered, revoked, or not renewed may not apply for issuance
11of a "Class B" license under this subdivision
.
SB586,2 12Section 2. 125.51 (4) (v) 1. a. of the statutes is created to read:
SB586,2,1713 125.51 (4) (v) 1. a. In this subdivision, "full-service restaurant" means an
14establishment where meals are prepared, served, and sold to transients or the
15general public for consumption on the premises and in which the sale of alcohol
16beverages accounts for 50 percent or less of the establishment's gross receipts for the
17most recent alcohol beverage licensing year.
SB586,3
1Section 3. Initial applicability.
SB586,3,32 (1) This act first applies to licenses initially issued under section 125.51 (4) (v)
31. of the statutes on the effective date of this subsection.
SB586,4 4Section 4. Effective date.
SB586,3,65 (1) This act takes effect on the first day of the 3rd month beginning after
6publication.
SB586,3,77 (End)
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