AB364: Bill Text

Under current law, alcohol beverages are generally distributed to consumers under a three-tier distribution system: the producer sells to a wholesaler; the wholesaler sells to a retailer; and the retailer sells 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 “B" license authorizes the retail sale of fermented malt beverages (beer) for consumption on or off the premises. A “Class B" license authorizes the retail sale of intoxicating liquor, which includes wine and distilled spirits, for consumption on the licensed premises and, subject to restrictions, off the licensed premises. Class “B” and “Class B” licenses are generally issued together for establishments such as restaurants, bars, and taverns. Class “A” and “Class A” licenses authorize the retail sale of, respectively, beer and intoxicating liquor in original packages for consumption off the licensed premises. Class “A” and “Class A” licenses are often issued together for establishments such as grocery stores, liquor stores, and convenience stores. With exceptions for certain sales of beer by brewers and brewpubs, a retail licensee may not purchase alcohol beverages from, or possess alcohol beverages purchased from, any person other than a wholesaler. If a retail licensee purchases or possesses beer in violation of this prohibition, the penalty that may be imposed is a fine of not more than $10,000 or imprisonment for not more than nine months or both. If a retail licensee purchases or possesses intoxicating liquor in violation of this prohibition, the penalty that may be imposed (or must be imposed if item 3., below, applies) is one of the following:

1. If a “Class B" licensee purchases intoxicating liquor from a “Class A" licensee for resale or possesses intoxicating liquor purchased from a “Class A" licensee for resale, a fine of not more than $100.

2. If 1. does not apply and the total volume of intoxicating liquor purchased or possessed in one month is 12 liters or less, a forfeiture of not more than $100.

3. If neither 1. nor 2. apply, a fine of not less than $1,000 nor more than $10,000.

This bill makes changes to some of these penalties. With respect to the penalty under item 2., above, the bill increases the threshold amount from 12 liters of intoxicating liquor to 48 liters of intoxicating liquor. With respect to the penalty under item 1., above, the bill changes the penalty from a fine to a forfeiture, making the violation a civil offense rather than a crime.

The bill also creates a tiered penalty structure for violations with respect to beer that is similar to the tiered structure for intoxicating liquor violations. Under the bill, if a retail licensee purchases or possesses beer in violation of the prohibition, the penalty that may be imposed is one of the following:

1. If a Class “B" licensee purchases beer from a Class “A" licensee for resale or possesses beer purchased from a Class “A" licensee for resale, a fine of not more than $100.

2. If 1. does not apply and the total volume of beer purchased or possessed in one month is 4,320 fluid ounces (15 cases) or less, a forfeiture of not more than $100.

3. If neither 1. nor 2. apply, a fine of not more than $10,000 or imprisonment for not more than nine months or both.

Credit restrictions

Under current law, a retailer of beer may not purchase or acquire beer from a wholesaler except upon payment of cash or extension of credit for not more than 15 days. A retailer of intoxicating liquor may not purchase or acquire intoxicating liquor from a wholesaler except upon payment of cash or extension of credit for not more than 30 days. A retailer that remains indebted to a wholesaler beyond the applicable period is precluded from purchasing more alcohol beverages from any wholesaler and may not be issued another retail license.

This bill eliminates these 15-day and 30-day maximum permissible credit periods.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB364,1 Section 1. 125.33 (7) (title) of the statutes is repealed and recreated to read:

AB364,3,2 125.33 (7) (title) Bona fide sale.

AB364,2 Section 2. 125.33 (7) (a) (title) of the statutes is repealed and recreated to read:

AB364,3,4 125.33 (7) (a) (title) Consignment prohibited.

AB364,3 Section 3. 125.33 (7) (a) 1. of the statutes is repealed.

AB364,4 Section 4. 125.33 (7) (a) 2. of the statutes is renumbered 125.33 (7) (a).

AB364,5 Section 5. 125.33 (7) (b) of the statutes is repealed.

AB364,6 Section 6. 125.33 (9) of the statutes is renumbered 125.33 (9) (a) and amended to read:

AB364,3,13 125.33 (9) (a) Except as provided in ss. 125.29 (3m) (b) and (c), 125.295 (1) (g), and 125.30 (4), no campus or retail licensee or permittee may purchase or possess fermented malt beverages purchased from any person other than a wholesaler holding a permit under this chapter for the sale of fermented malt beverages.

AB364,3,19 (b) Any person who violates this subsection par. (a), if the total volume of fermented malt beverages purchased or possessed by that person in one month is 4,320 fluid ounces or less, may be required to forfeit not more than $100. A person who purchases or possesses more than 4,320 fluid ounces of fermented malt beverages in one month in violation of par. (a) may be fined not more than $10,000 or imprisoned for not more than 9 months or both.

AB364,7 Section 7. 125.33 (9) (c) of the statutes is created to read:

AB364,4,5 125.33 (9) (c) Notwithstanding par. (b), a Class “B" licensee who purchases fermented malt beverages from a Class “A" licensee for resale or who possesses fermented malt beverages purchased from a Class “A" licensee for resale may be required to forfeit not more than $100.

AB364,8 Section 8. 125.69 (4) (title) of the statutes is repealed and recreated to read:

AB364,4,7 125.69 (4) (title) Bona fide sale.

AB364,9 Section 9. 125.69 (4) (a) (title) of the statutes is repealed and recreated to read:

AB364,4,9 125.69 (4) (a) (title) Consignment prohibited.

AB364,10 Section 10. 125.69 (4) (a) 1. of the statutes is repealed.

AB364,11 Section 11. 125.69 (4) (a) 2. of the statutes is renumbered 125.69 (4) (a).

AB364,12 Section 12. 125.69 (4) (b) of the statutes is repealed.

AB364,13 Section 13. 125.69 (4) (e) of the statutes is repealed.

AB364,14 Section 14. 125.69 (6) (b) of the statutes is amended to read:

AB364,4,19 125.69 (6) (b) Any person who violates par. (a), if the total volume of intoxicating liquor purchased or possessed by that person in one month is 12 48 liters or less, may be required to forfeit not more than $100. A person who purchases or possesses more than 12 48 liters of intoxicating liquor in one month in violation of par. (a) shall be fined not less than $1,000 nor more than $10,000.

AB364,15 Section 15. 125.69 (6) (c) of the statutes is amended to read:

AB364,4,24 125.69 (6) (c) Notwithstanding par. (b), a “Class B" 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 required to forfeit not more than $100.

AB364,4,25 (End)