SB801: Bill Text

SB801,34,9 125.52 (2) Limited manufacturer's permit. The department office shall issue a limited manufacturer's permit which authorizes the use or sale of the intoxicating liquor produced only if it is rendered unfit for use as a beverage and is used or sold for use as fuel. The department office shall notify the department of natural resources of the name and address of any person to whom a limited manufacturer's permit is issued.

SB801,100 Section 100. 125.52 (3) of the statutes is amended to read:

SB801,34,17 125.52 (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.

SB801,101 Section 101. 125.52 (8) of the statutes is created to read:

SB801,34,22 125.52 (8) Resort manufacturers. 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 resort manufacturer permit issued under s. 125.525.

SB801,102 Section 102. 125.525 of the statutes is created to read:

SB801,34,24 125.525 Resort manufacturer permits. (1) Definitions. In this section:

SB801,35,3 (a) “Resort” means a hospitality business operation involving multiple facilities under the same ownership that includes at least 300 guest rooms and includes all of the following located within 15 miles of these guest rooms:

SB801,35,4 1. At least one spa.

SB801,35,6 2. Comprehensive food and beverage services consisting of at least 5 separate restaurants.

SB801,35,7 3. Championship golf courses consisting of at least 36 holes.

SB801,35,11 (b) “Secondary resort facility” means a facility, other than a resort, that is located in this state, that is owned by a resort manufacturer, that is of the same or substantially similar consumer brand family as the resort, and that provides lodging accommodations or has at least one golf course or both.

SB801,35,13 (2) Authorized activities. The office shall issue resort manufacturer permits to eligible applicants authorizing all of the following:

SB801,35,16 (a) The manufacture or rectification of intoxicating liquor on the premises covered by the permit if not more than 150,000 gallons of intoxicating liquor are manufactured or rectified in a calendar year by the permittee.

SB801,35,18 (b) The bottling on the resort manufacturer premises of intoxicating liquor that has been manufactured or rectified on these premises.

SB801,35,20 (c) The possession and storage of alcohol beverages on the resort manufacturer premises.

SB801,35,23 (d) The sale of intoxicating liquor manufactured or rectified on the resort manufacturer premises in original unopened packages or containers to wholesalers holding a permit under s. 125.54.

SB801,36,2 (e) Notwithstanding ss. 125.04 (9) and 125.09 (1), the sale at retail on the resort manufacturer premises of intoxicating liquor manufactured or rectified on the resort manufacturer premises for consumption on the premises or in original unopened packages or containers for consumption off the premises.

SB801,36,7 (f) Notwithstanding ss. 125.04 (9) and 125.09 (1), the sale at retail of alcohol beverages, other than intoxicating liquor manufactured or rectified on the resort manufacturer premises, for consumption on the resort manufacturer premises if the alcohol beverages were purchased from a wholesaler holding a permit under s. 125.28 or 125.54.

SB801,36,11 (g) The sale and delivery by the resort manufacturer of intoxicating liquor manufactured or rectified on the resort manufacturer premises, in original unopened packages or containers, to the retail licensed premises that are part of the resort or, subject to the limitation in sub. (4) (b), part of a secondary resort facility.

SB801,36,13 (3) Persons eligible. Except as provided in s. 125.69 (1), an applicant is eligible for a resort manufacturer permit if all of the following apply:

SB801,36,17 (a) The applicant 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.

SB801,36,19 (b) The applicant's entire process for manufacturing or rectifying intoxicating liquor occurs on premises covered by a permit under this section.

SB801,36,20 (c) The applicant holds a valid certificate issued under s. 73.03 (50).

SB801,36,21 (d) The applicant owns and operates at least one resort located in this state.

SB801,36,23 (e) The applicant does not hold, or have a direct or indirect ownership interest in premises operating under, any of the following:

SB801,36,24 1. A brewer's permit issued under s. 125.29.

SB801,36,25 2. A brewpub permit issued under s. 125.295.

SB801,37,1 3. A wholesaler's permit issued under s. 125.28.

SB801,37,3 4. Except as provided in sub. (4), a Class “B" license issued under s. 125.26, Class “B” permit issued under s. 125.27, or Class “A" license issued under s. 125.25.

SB801,37,6 (4) Retail interests. (a) A resort manufacturer may hold retail licenses for licensed premises that are part of the resort, including any gift shops and a grocery store.

SB801,37,10 (b) In addition to retail licenses authorized under par. (a), a resort manufacturer may hold Class “B” and “Class B” licenses for not more than 10 licensed locations that are part of any secondary resort facility of the resort manufacturer.

SB801,37,14 (c) In addition to retail licenses authorized under pars. (a) and (b), if any Class “B” or “Class B” license has been issued to a resort manufacturer for part of a secondary resort facility, the resort manufacturer may also hold a Class “A” or “Class A” license, or both, for any gift shop associated with the secondary resort facility.

SB801,37,16 (5) Fees. The fee for issuance or renewal of a permit under this section shall be established by the office but may not be less than $10,000 biennially.

SB801,103 Section 103. 125.53 (1) of the statutes is amended to read:

SB801,38,11 125.53 (1) The department office 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 to wholesalers holding a permit under s. 125.54. A winery permit also authorizes the permittee to, on the winery premises and without obtaining a rectifier's permit, possess intoxicating liquor and mix or blend intoxicating liquor to produce wine sold to wholesalers holding a permit under s. 125.54. A winery holding a permit 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 one “Class A" license or one “Class B" license, but not both. The “Class A" license or “Class B" license may either be issued for the winery premises or for real estate owned or leased by the winery. If a “Class A" or “Class B" liquor license has also been issued to the winery, the winery may provide wine manufactured, mixed, or blended on the winery premises directly to the “Class A" or “Class B" premises and may offer the taste samples on the “Class A" or “Class B" premises. A winery holding a permit under this section may also make retail sales and provide taste samples on county or district fair fairgrounds as provided in s. 125.51 (10), but this wine sold at retail or provided as taste samples shall be purchased from a wholesaler holding a permit under s. 125.54.

SB801,104 Section 104. 125.535 (1) of the statutes is amended to read:

SB801,38,16 125.535 (1) Authorized activities. The department office shall issue direct wine shippers' permits authorizing the permittee to ship wine directly to an individual in this state who is of the legal drinking age, who acknowledges receipt of the wine shipped, and who is not intoxicated at the time of delivery.

SB801,105 Section 105. 125.535 (2) of the statutes is amended to read:

SB801,38,21 125.535 (2) Annual permit fee. The department office may, by rule, establish an annual fee, not to exceed $100, for each permit issued under this section. All fees collected under this subsection shall be credited to the appropriation account under s. 20.566 (1) (ha).

SB801,106 Section 106. 125.535 (3) (a) 2m. of the statutes is created to read:

SB801,38,23 125.535 (3) (a) 2m. A resort manufacturer permit under s. 125.525.

SB801,107 Section 107. 125.535 (3) (b) 2. of the statutes is amended to read:

SB801,39,5 125.535 (3) (b) 2. The winery submits to the department office, with any initial application or renewal for a certificate under s. 73.03 (50) or a permit under par. (a) 3. or 4., a copy of any current license, permit, or authorization issued to the winery by the state from which the winery will ship wine into this state or the winery's federal basic permit.

SB801,108 Section 108. 125.54 (1) of the statutes is amended to read:

SB801,39,14 125.54 (1) Authorized activities. The department office 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, resort manufacturers, 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).

SB801,109 Section 109. 125.54 (5) of the statutes is amended to read:

SB801,39,21 125.54 (5) Sales area. No wholesaler may sell any intoxicating liquor before filing with the department office a written statement that the permittee is a distributor of a particular brand in this state, or an area of this state, and that the sales of that brand by the permittee and anyone purchasing from the permittee will be limited to the area specified. The permittee shall notify the department office of any change in the area within 7 days of the effective date of the change.

SB801,110 Section 110. 125.54 (7) (a) 2. of the statutes is amended to read:

SB801,40,4 125.54 (7) (a) 2. A permittee under this section shall annually sell and deliver intoxicating liquor to at least 10 retail licensees or permittees that do not have any direct or indirect interest in each other or in the permittee under this section. The department office shall not issue a permit under this section unless the applicant represents to the department office an intention to satisfy this requirement, and shall not renew a permit issued under this section unless the permittee demonstrates that this requirement has been satisfied.

SB801,111 Section 111. 125.54 (7) (c) 3. of the statutes is amended to read:

SB801,40,8 125.54 (7) (c) 3. This paragraph shall not affect the authority of any municipality or the department office to revoke, suspend, or refuse to renew or issue a license or permit under s. 125.12.

SB801,112 Section 112. 125.54 (7) (d) of the statutes is amended to read:

SB801,40,18 125.54 (7) (d) The department office shall promulgate rules to administer and enforce the requirements under this subsection. The rules shall ensure coordination between the department's office's issuance and renewal of permits under this section and its enforcement of the requirements of this subsection, and shall require that all applications for issuance or renewal of permits under this section be processed by department office personnel generally familiar with activities of intoxicating liquor wholesalers. The department office shall establish by rule minimum requirements for warehouse facilities on premises described in permits issued under this section and for periodic site inspections by the department office of such warehouse facilities.

SB801,113 Section 113. 125.54 (8) of the statutes is amended to read:

SB801,40,25 125.54 (8) Duty to work in good faith. Each wholesaler has an obligation to negotiate in good faith with any manufacturer, rectifier, resort manufacturer, 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.

SB801,114 Section 114. 125.545 (2) (a) 3. b. of the statutes is amended to read:

SB801,41,3 125.545 (2) (a) 3. b. The small winery is certified by the department office under sub. (6) (a) as a small winery.

SB801,115 Section 115. 125.545 (3) (a) 1. of the statutes is amended to read:

SB801,41,12 125.545 (3) (a) 1. Within 7 days after filing its articles of incorporation under ch. 185, a cooperative wholesaler shall apply to the department office for a wholesaler's permit under s. 125.54. The provisions of s. 125.04 (5) (c) and (6) shall apply to a cooperative wholesaler as if the cooperative wholesaler were a corporation or a limited liability company and, for each of these provisions, the department office shall determine whether the cooperative wholesaler is most similar to a corporation or a limited liability company in the context of that provision and apply that provision to the cooperative wholesaler accordingly.

SB801,116 Section 116. 125.545 (3) (a) 2. of the statutes is amended to read:

SB801,41,20 125.545 (3) (a) 2. Notwithstanding s. 125.54 (6), the department office may issue not more than one wholesaler's permit to any cooperative wholesaler. The department office may not issue more than a total of 6 wholesalers' permits to cooperative wholesalers in this state. The department office may not issue any new wholesaler's permit to a cooperative wholesaler after December 31, 2008, but may renew wholesalers' permits that were initially issued to cooperative wholesalers prior to that date.

SB801,117 Section 117. 125.545 (5) of the statutes is amended to read:

SB801,42,2 125.545 (5) Biennial reports. With each application for renewal of a wholesaler's permit issued to a cooperative wholesaler, each cooperative wholesaler shall file with the department office, in the form and manner prescribed by the department office by rule, a biennial report that includes detailed information on its members, board of directors, and sale and distribution activities.

SB801,118 Section 118. 125.545 (6) of the statutes is amended to read:

SB801,42,6 125.545 (6) Department Office certification and rule making. (a) 1. The department office shall, upon application, certify eligible applicants as small wineries and renew prior certifications of eligible applicants as small wineries.

SB801,42,14 2. Any winery seeking to become a member of, or to maintain its membership in, a cooperative wholesaler may apply to the department office for certification as a small winery. If the winery meets the definition of a small winery under this section, satisfies the requirement under sub. (2) (a) 3. a., and submits any other information that the department office determines is necessary to certify that the winery is operating as a small winery and is eligible for membership in a cooperative wholesaler, the department office shall certify the winery as a small winery. This certification shall remain valid for one year.

SB801,42,16 3. In certifying any winery under subd. 2., the department office shall classify the winery as either a Wisconsin winery or an out-of-state winery.

SB801,42,20 4. The department office shall refuse to certify under this paragraph any winery that cannot demonstrate it holds all necessary permits for its operations or that the department office finds is otherwise not in full compliance with the laws of this state.

SB801,42,22 (b) The department office shall promulgate rules to administer and enforce the requirements under this section.

SB801,119 Section 119. 125.545 (7) of the statutes is amended to read:

SB801,43,2 125.545 (7) Penalties. (a) Any winery that sells or distributes its wine directly to a retailer, rather than through a wholesaler or cooperative wholesaler, is subject to a fine of not more than $10,000 and revocation of all of its permits by the department office under s. 125.12 (5).

SB801,43,6 (b) Any cooperative wholesaler that provides preferential treatment to a Wisconsin winery or discriminates against an out-of-state winery is subject to a fine of not more than $10,000 and revocation of its wholesaler's permit by the department office under s. 125.12 (5).

SB801,120 Section 120. 125.55 (1) of the statutes is amended to read:

SB801,43,9 125.55 (1) The department office may issue a combination manufacturer's and rectifier's permit.

SB801,121 Section 121. 125.56 (2) (a) of the statutes is amended to read:

SB801,43,15 125.56 (2) (a) The department office shall issue sacramental wine permits to organized religious bodies authorizing them to purchase for their own use sacramental wine from any permittee under s. 125.52 (1), 125.53 or 125.54. A permit under this subsection does not authorize the resale of sacramental wine by the permittee.

SB801,122 Section 122. 125.56 (2) (c) of the statutes is amended to read:

SB801,43,19 125.56 (2) (c) Shipments of sacramental wine shall be conspicuously labeled “for sacramental purposes" and shall meet any other requirements the department office prescribes by rule.

SB801,123 Section 123. 125.56 (2) (d) of the statutes is amended to read:

SB801,43,22 125.56 (2) (d) A sacramental wine permit shall be issued free of charge by the department office and is not subject to s. 125.04 (11) (a).

SB801,124 Section 124. 125.58 (1) of the statutes is amended to read:

SB801,44,17 125.58 (1) The department office 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 and shipped for use for production purposes, to a person holding a manufacturer's or rectifier's permit under s. 125.52, a resort manufacturer 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.

SB801,125 Section 125. 125.60 (1) of the statutes is amended to read:

SB801,44,23 125.60 (1) The department office may issue a wholesale alcohol permit which authorizes the permittee to sell ethyl alcohol of 190 proof or more to persons holding permits or licenses issued under s. 125.61 or 125.62. Nothing in this section requires manufacturers, rectifiers and wholesalers holding permits issued under s. 125.52 (1) or 125.54 to obtain a wholesale alcohol permit.

SB801,126 Section 126. 125.61 (1) of the statutes is amended to read:

SB801,45,4 125.61 (1) The department office may issue a medicinal alcohol permit which authorizes the permittee to purchase and use alcohol for medicinal purposes only. The permit may be issued only to persons who prove to the department office that they use alcohol for medicinal purposes.

SB801,127 Section 127. 125.61 (3) of the statutes is amended to read:

SB801,45,8 125.61 (3) Shipments of medicinal alcohol shall be conspicuously labeled “for medicinal purposes" and shall meet other requirements which the department office prescribes by rule.