AB492: Bill Text

AB492,26 Section 26. 125.51 (4) (br) 2. of the statutes is renumbered 125.51 (4) (br) 2. (intro.) and amended to read:

AB492,12,6 125.51 (4) (br) 2. (intro.) Notwithstanding subd. 1., if the difference between the number of licenses determined under par. (b) 1g. and under par. (bm) 1. is 3 or fewer, the number of reserve “Class B" licenses authorized to be issued by that municipality is the sum of the following:

AB492,12,14 a. The difference between the number of licenses determined under par. (b) 1g. and under par. (bm) 1., plus one per each increase of 500 population to the population recorded under par. (bm), plus one for each license transferred to the municipality under par. (e), minus one for each license transferred from the municipality under par. (e), plus one if the municipality had issued a license under s. 125.51 (4) (br) 2., 1999 stats., based on a fraction of 500 population but only as long as the total number of licenses issued by the municipality equals the maximum number of licenses authorized.

AB492,27 Section 27. 125.51 (4) (br) 2. b. of the statutes is created to read:

AB492,12,18 125.51 (4) (br) 2. b. The result under subd. 2. a. multiplied by 0.1, except that if the product is not a whole number, round the product up to the nearest whole number.

AB492,28 Section 28. 125.52 (1) (b) 1. of the statutes is amended to read:

AB492,12,25 125.52 (1) (b) 1. A manufacturer's or rectifier's permit entitles the permittee to sell intoxicating liquor to wholesalers holding a permit under s. 125.54, to wineries holding a permit under s. 125.53, to distillpubs holding a permit under s. 125.525, and to other manufacturers and rectifiers holding a permit under this section, from the premises described in the permit. Except as provided in subd. 2., no sales may be made for consumption on the premises of the permittee.

AB492,29 Section 29. 125.52 (3) of the statutes is amended to read:

AB492,13,8 125.52 (3) Persons eligible. Except as provided under sub. (8) and s. 125.69, a manufacturer's or rectifier's permit may be issued to any person who holds a valid certificate issued under s. 73.03 (50) and who is 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. Notwithstanding s. 125.04 (5) (a) 5., a person is not required to complete a responsible beverage server training course to be eligible for a permit under this section.

AB492,30 Section 30. 125.52 (8) of the statutes is created to read:

AB492,13,13 125.52 (8) Distillpubs. Neither a manufacturer's permit nor a rectifier's permit may be issued under this section to any person that holds, or has a direct or indirect ownership interest in a premises operating under, a distillpub permit issued under s. 125.525.

AB492,31 Section 31. 125.525 of the statutes is created to read:

AB492,13,15 125.525 Distillpub permits. (1) Definitions. In this section:

AB492,13,16 (a) “Distilled spirits” means intoxicating liquor other than wine.

AB492,13,19 (b) “Rectify” or “rectification” means blending, mixing, purifying, refining, aging, or otherwise processing distilled spirits, including with wine or other ingredients, but does not include distilling.

AB492,13,21 (2) Authorized activities. The department shall issue distillpub permits to eligible applicants authorizing all of the following:

AB492,13,25 (a) The manufacture or rectification, or both, of distilled spirits on the distillpub premises if not more than a combined total of 300,000 gallons of distilled spirits are manufactured or rectified in a calendar year by the permittee's distillpub group.

AB492,14,2 (b) The bottling on distillpub premises of distilled spirits that have been manufactured or rectified on these premises.

AB492,14,3 (c) The possession and storage of intoxicating liquor on distillpub premises.

AB492,14,7 (d) The transportation of distilled spirits that have been manufactured or rectified on the distillpub premises between these premises and any other distillpub premises of the distillpub group or any retail premises for which the distillpub group is authorized under sub. (4) (b) to hold a retail license.

AB492,14,11 (e) The sale at wholesale, shipment, transportation, and delivery, in original unopened packages or containers, to wholesalers holding a permit under s. 125.54, from the distillpub premises, of distilled spirits that have been manufactured or rectified on these premises or on other distillpub premises of the distillpub group.

AB492,14,22 (f) The sale at wholesale, shipment, transportation, and delivery, in original unopened packages or containers, to retailers, from the distillpub premises, of distilled spirits that have been manufactured or rectified on these premises or on other distillpub premises of the distillpub group. A distillpub's distillpub group may not sell, ship, transport, or deliver more than a total of 30,000 gallons of distilled spirits in any calendar year to retailers under this paragraph. Distilled spirits provided by a distillpub to any retail premises for which the distillpub group is authorized under sub. (4) (b) to hold a retail license shall not be included in any calculation of the 30,000 gallon limitation under this paragraph. Deliveries and shipments of distilled spirits by a distillpub under this paragraph shall be made to retailers only at their retail premises.

AB492,15,2 (g) Notwithstanding s. 125.04 (9), the retail sale on distillpub premises of distilled spirits, in original unopened packages or containers, that have been manufactured or rectified on the distillpub premises or on other distillpub premises of the distillpub group for off-premise consumption by individuals.

AB492,15,9 (h) Notwithstanding ss. 125.04 (9) and 125.51 (6), the retail sale, shipment, transportation, and delivery, in original unopened packages or containers, to individuals at their residences or other designated addresses, from the distillpub premises, of distilled spirits that have been manufactured or rectified on these premises or on other distillpub premises of the distillpub group, if the individual arranges while physically present on the distillpub premises to receive periodic direct shipments of distilled spirits from the distillpub.

AB492,15,12 (i) The sale of alcohol beverages at retail in accordance with the terms of any retail license authorized to be held by the distillpub under sub. (4) (b), along with the exercise of any other privilege afforded by the retail license.

AB492,15,14 (3) Persons eligible. (a) An applicant is eligible for a distillpub permit only if all of the following apply:

AB492,15,16 1. The applicant's distillpub group manufactures or rectifies, or both, a combined total of not more than 300,000 gallons of distilled spirits in a calendar year.

AB492,15,18 2. The applicant operates on the distillpub premises a restaurant for which a license is issued under s. 97.30.

AB492,15,23 3. The applicant holds a “Class B" license, the restaurant identified in subd. 2. is located on the “Class B” licensed premises, and, on the “Class B" licensed premises, the applicant offers for sale, in addition to distilled spirits manufactured or rectified by the applicant, intoxicating liquor not manufactured or rectified by the applicant and its distillpub group.

AB492,16,3 4. The applicant holds a valid certificate issued under s. 73.03 (50) and is qualified under s. 125.04 (5), except that an applicant may not be a person acting as an agent for or in the employ of another. Notwithstanding s. 125.04 (5) (a) 5., a person is not required to complete a responsible beverage server training course to be eligible for a permit under this section.

AB492,16,6 5. Neither the applicant nor the applicant's distillpub group holds, or has a direct or indirect ownership interest in a premises operating under, any of the following:

AB492,16,8 a. Except as provided in sub. (4) (b), a Class “A" license issued under s. 125.25 or a “Class A” license issued under s. 125.51 (2).

AB492,16,11 b. Except as provided in sub. (4) (b), a Class “B" license or permit issued under s. 125.26 or 125.27, a “Class B" license or permit issued under s. 125.51 (3) or (5), or a “Class C" license issued under s. 125.51 (3m).

AB492,16,12 c. A wholesaler's permit issued under s. 125.54.

AB492,16,13 d. A manufacturer's permit or rectifier's permit issued under s. 125.52.

AB492,16,14 e. A brewer's permit issued under s. 125.29.

AB492,16,15 f. An alcohol beverage warehouse permit issued under s. 125.19.

AB492,16,23 (b) If an applicant under par. (a) has no current operations, the applicant may certify that the applicant has applied for or will apply for a “Class B" license or license under s. 97.30 for a restaurant or will comply with any other requirement under par. (a), prior to or upon commencing operations authorized under this section. If a “Class B" license or license under s. 97.30 for a restaurant is not subsequently issued to the applicant, or if the applicant otherwise fails to comply with any requirement for eligibility under par. (a), the department may revoke under s. 125.12 (5) the permit issued under this section.

AB492,17,4 (c) If an applicant under par. (a) holds any license or permit prohibited under par. (a) 5. at the time of its application, the applicant may certify that the applicant will surrender any such license or permit upon issuance of a permit under this section. If the department issues a permit under this section and the applicant fails to surrender any license or permit prohibited under par. (a) 5., the department may revoke under s. 125.12 (5) the permit issued under this section.

AB492,17,8 (4) Multiple permits; retail licenses. (a) No distillpub group may hold more than 6 distillpub permits issued under this section. If a distillpub group holds more than one permit issued under this section, the distillpub group is not required to manufacture or rectify distilled spirits on each premises for which a permit is issued.

AB492,17,9 (b) A distillpub may hold only the following retail licenses:

AB492,17,11 1. Any “Class B” license for which the licensed premises includes a restaurant on distillpub premises, as described in sub. (3) (a) 2. and 3.

AB492,17,14 2. Not more than 6 “Class B” licenses in addition to those authorized under subd. 1. if any of these additional 6 “Class B” licenses was initially issued prior to January 1, 1983.

AB492,17,16 3. A Class “B” license for any premises for which a “Class B” license authorized under subd. 1. or 2. is issued.

AB492,17,18 4. One Class “A” license and one “Class A” license, both issued for the same premises and initially issued prior to January 1, 1990.

AB492,17,21 5. If the distillpub also holds a brewpub permit under s. 125.295 and the distillpub permit and the brewpub permit are issued in the same name, any retail license authorized under s. 125.295 (3) (b) and (c).

AB492,17,23 (c) Each retail license authorized under par. (b) shall be issued in the same name as the distillpub permittee.

AB492,18,3 (5) Fees. The fee established by the department for a distillpub permit shall not exceed the fee established by the department for a manufacturer's permit under s. 125.52.

AB492,18,5 (6) Rule making. The department may promulgate rules and prescribe forms to administer and enforce this section.

AB492,32 Section 32. 125.53 (3) of the statutes is created to read:

AB492,18,9 125.53 (3) A winery holding a permit under this section may hold a Class “B" license authorizing the retail sale of fermented malt beverages if the winery holds a “Class B" license issued for the same premises.

AB492,33 Section 33. 125.54 (1) of the statutes is amended to read:

AB492,18,17 125.54 (1) Authorized activities. The department shall issue wholesalers' permits authorizing the permittee to sell, from the premises described in the permit, intoxicating liquor at wholesale to retailers and wholesalers, as well as to manufacturers, rectifiers, distillpubs, and wineries for production purposes. The permittee may not sell intoxicating liquor for consumption on the premises. 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).

AB492,34 Section 34. 125.54 (7) (a) 1. of the statutes is renumbered 125.54 (7) (a).

AB492,35 Section 35. 125.54 (7) (a) 2. of the statutes is repealed.

AB492,36 Section 36. 125.54 (8) of the statutes is amended to read:

AB492,19,2 125.54 (8) Duty to work in good faith. Each wholesaler has an obligation to negotiate in good faith with any manufacturer, rectifier, distillpub, or winery that seeks to sell its products in this state through the wholesaler. To this end, all wholesalers shall work diligently to ensure that distribution channels are available for the sale of intoxicating liquor products through wholesalers to retailers in this state.

AB492,37 Section 37. 125.545 (1) (d) of the statutes is amended to read:

AB492,19,5 125.545 (1) (d) “Small winery" means any winery that produces and bottles less than 25,000 50,000 gallons of wine in a calendar year.

AB492,38 Section 38. 125.58 (1) of the statutes is amended to read:

AB492,19,24 125.58 (1) The department shall issue out-of-state shippers' permits which authorize persons located outside this state to sell or ship intoxicating liquor into this state. Except as provided under sub. (4), intoxicating liquor may be shipped into this state only to a person holding a wholesaler's permit under s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a permit under this section, to a person holding a manufacturer's or rectifier's permit under s. 125.52, a distillpub permit under s. 125.525, or a winery permit under s. 125.53. Except as provided under sub. (4), a separate out-of-state shipper's permit is required for each location from which any intoxicating liquor is sold or shipped into this state, including the location from which the invoices are issued for the sales or shipments. Any person holding an out-of-state shipper's permit issued under this section may solicit orders for sales or shipments by the permittee without obtaining the sales solicitation permit required by s. 125.65, but every agent, salesperson or other representative who solicits orders for sales or shipments by an out-of-state shipper shall first obtain a permit for soliciting orders under s. 125.65. No holder of an out-of-state shipper's permit issued under this section may sell intoxicating liquor in this state or ship intoxicating liquor into this state unless the out-of-state shipper is the primary source of supply for that intoxicating liquor.

AB492,39 Section 39. 125.68 (4) (c) 3m. of the statutes is amended to read:

AB492,20,4 125.68 (4) (c) 3m. No premises for which a “Class B" license has been issued under s. 125.51 (3) (am) may remain open for the sale of intoxicating liquor between the hours of 9 p.m. 2 a.m. and 8 a.m. A municipality may, by ordinance, impose more restrictive hours than are provided in this subdivision.

AB492,40 Section 40. 125.68 (9) (b) of the statutes is amended to read:

AB492,20,9 125.68 (9) (b) All containers of intoxicating liquor sold in this state shall be clearly and legibly labeled with the name and address of the manufacturer or distillpub and the name of the intoxicating liquor. The label shall meet any other labeling requirements created by the federal alcohol administration act.

AB492,41 Section 41. 125.68 (9) (d) of the statutes is amended to read:

AB492,20,13 125.68 (9) (d) All packages or containers of intoxicating liquor delivered in this state shall bear seals affixed by the manufacturer or distillpub so that the contents cannot be removed without breaking the seals.

AB492,42 Section 42. 125.68 (10) of the statutes is amended to read:

AB492,20,20 125.68 (10) Shipments into state. (a) Except as provided in s. 125.535, no intoxicating liquor may be shipped into this state unless consigned to a person holding a wholesaler's permit under s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a permit under s. 125.58, consigned to a person holding a manufacturer's or rectifier's permit under s. 125.52, a distillpub permit under s. 125.525, or a winery permit under s. 125.53.

AB492,21,3 (b) Except as provided in s. ss. 125.525 (2)(h) and 125.535, no common carrier or other person may transport into and deliver within this state any intoxicating liquor unless it is consigned to a person holding a wholesaler's permit under s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a permit under s. 125.58, consigned to a person holding a manufacturer's or rectifier's permit under s. 125.52, a distillpub permit under s. 125.525, or a winery permit under s. 125.53. Any common carrier violating this paragraph shall forfeit $100 for each violation.

AB492,43 Section 43. 125.69 (title) of the statutes is amended to read:

AB492,21,6 125.69 (title) Restrictions on dealings between manufacturers, rectifiers, distillpubs, wholesalers , and retailers.

AB492,44 Section 44. 125.69 (1) (a) of the statutes is renumbered 125.69 (1) (a) 1. and amended to read:

AB492,21,13 125.69 (1) (a) 1. No Except as provided in subds. 2. and 3., no intoxicating liquor manufacturer, rectifier, distillpub, winery, out-of-state shipper permittee, or wholesaler may hold any direct or indirect interest in any “Class A" license or establishment and no “Class A" licensee may hold any direct or indirect interest in a wholesale permit or establishment, except that a .

AB492,21,18 2. A winery that has a permit under s. 125.53 may have an ownership interest in a “Class A" license and a person may hold a “Class A" license and both a winery permit under s. 125.53 and a manufacturer's or rectifier's permit under s. 125.52 and may make retail sales and provide taste samples as authorized under the “Class A" license and ss. 125.06 (13) and 125.52 (1) (b) 2.

AB492,45 Section 45. 125.69 (1) (a) 3. of the statutes is created to read:

AB492,21,21 125.69 (1) (a) 3. A person may hold a distillpub permit and a “Class A” license as provided in s. 125.525 (4) (b) 4.

AB492,46 Section 46. 125.69 (1) (b) 1. of the statutes is amended to read:

AB492,22,4 125.69 (1) (b) 1. Except as provided under subds. 3., 4., and 5., no intoxicating liquor manufacturer, rectifier, distillpub, winery, out-of-state shipper permittee, or wholesaler may hold any direct or indirect interest in any “Class B" license or permit or establishment or “Class C" license or establishment and no “Class B" licensee or permittee or “Class C" licensee may hold any direct or indirect interest in a manufacturer, rectifier, distillpub, winery, out-of-state shipper, or wholesale permit or establishment.

AB492,47 Section 47. 125.69 (1) (b) 3. of the statutes is created to read:

AB492,22,8 125.69 (1) (b) 3. A distillpub may hold any “Class B" license authorized under s. 125.525 (4) (b) and, if the distillpub also holds a brewpub permit, any “Class C” license authorized under s. 125.525 (4) (b) 5.

AB492,48 Section 48. 125.69 (1) (c) of the statutes is amended to read:

AB492,22,15 125.69 (1) (c) No manufacturer, rectifier, distillpub, winery, or out-of-state shipper permittee, whether located within or without this state, may hold any direct or indirect interest in any wholesale permit or establishment. Except as provided in pars. (a) 2. and 3. and (b) 3. and 4. and s. ss. 125.295, 125.525, and 125.53, no retail licensee may hold any direct or indirect interest in any manufacturer, rectifier, distillpub, winery, or out-of-state shipper permittee.

AB492,49 Section 49. 125.69 (1) (d) of the statutes is amended to read:

AB492,22,19 125.69 (1) (d) Except as provided in s. ss. 125.295 (3) (c) and (3m) and 125.525 (4) (b), no brewpub may hold any direct or indirect interest in any “Class B" license or permit or establishment or “Class C" license or establishment.

AB492,50 Section 50. 125.69 (3) of the statutes is amended to read:

AB492,23,2 125.69 (3) Volume discounts to campuses and retailers. A wholesaler of intoxicating liquor, and a distillpub with respect to sales of intoxicating liquor authorized under s. 125.525 (2) (f), shall charge the same price to all campuses and retail licensees and permittees making purchases in similar quantities. Any discount offered on intoxicating liquor shall be delivered to the retailer in a single transaction and single delivery, and on a single invoice.

AB492,51 Section 51. 125.69 (4) (c) of the statutes is created to read:

AB492,23,8 125.69 (4) (c) Distillpubs. For purposes of this subsection, a distillpub, when acting under authority of a retail license with respect to intoxicating liquor not manufactured or rectified by the distillpub, is deemed an intoxicating liquor retail licensee. This paragraph does not affect any provision of this subsection with respect to a distillpub acting under authority of s. 125.525 (2) (f).