AB304,72 3Section 72. 125.12 (5) (c) of the statutes is amended to read:
AB304,40,54 125.12 (5) (c) A revocation, suspension, or refusal to renew a permit under par.
5(a) or, (b), or (bm) is a contested case under ch. 227.
AB304,73 6Section 73 . 125.12 (6) (a) of the statutes is amended to read:
AB304,40,147 125.12 (6) (a) Any person may file a sworn written complaint with the
8department division alleging that an intoxicating liquor wholesaler has violated s.
9125.54 (7) (a). The complaint shall identify the specific legal basis for the complaint
10and sufficient facts for the department division to determine whether there is cause
11to find that a violation has occurred. The department division shall provide a copy
12of the complaint to any wholesaler against whom allegations are made, along with
13notice of the time period under par. (b) to show cause why the wholesaler's permit
14should not be revoked or suspended or to request a hearing.
AB304,74 15Section 74 . 125.12 (6) (b) of the statutes is amended to read:
AB304,40,1916 125.12 (6) (b) Within 30 days of receiving a copy of the complaint under par. (a),
17any wholesaler against whom allegations are made may file a sworn written
18response or a written request for an evidentiary hearing before the department
19division under s. 227.44.
AB304,75 20Section 75 . 125.12 (6) (c) of the statutes is amended to read:
AB304,41,421 125.12 (6) (c) Subject to pars. (d) 1. and (dm), if no request for an evidentiary
22hearing is made under par. (b), within 60 days of receiving any response under par.
23(b) or, if no response is made, within 60 days of the date on which a response or
24request for hearing is due under par. (b), the department division shall make a
25written decision as to whether a violation has occurred and either dismiss the

1complaint or take action under par. (e). Any decision under this paragraph shall
2include findings of fact and conclusions of law and shall state all reasons for the
3decision. The department division shall provide a copy of the decision to the
4complainant and to any wholesaler against whom allegations are made.
AB304,76 5Section 76 . 125.12 (6) (cm) of the statutes is amended to read:
AB304,41,146 125.12 (6) (cm) Subject to pars. (d) 2. and (dm), if a request for an evidentiary
7hearing is made under par. (b), the hearing shall be conducted in the manner
8specified for a contested case under ss. 227.44 to 227.50, except that the hearing shall
9be conducted within 45 days of receiving the request for hearing under par. (b) and
10the department division shall make its written decision, including whether a
11violation has occurred and whether the complaint is dismissed or action is taken
12under par. (e), within 15 days after the hearing. In addition to service of the decision
13as provided under s. 227.48, the department division shall provide a copy of the
14decision to the complainant.
AB304,77 15Section 77 . 125.12 (6) (d) of the statutes is amended to read:
AB304,41,2216 125.12 (6) (d) 1. If no request for an evidentiary hearing is made under par. (b),
17within 60 days of receiving any response under par. (b) or, if no response is made,
18within 60 days of the date on which a response or request for hearing is due under
19par. (b), the department division may extend the time period for making a decision
20under par. (c) by an additional 60 days if the department division provides notice
21within the time period specified in par. (c) that an additional 60 days is necessary for
22investigation.
AB304,42,223 2. If a request for an evidentiary hearing is made under par. (b), within 45 days
24of receiving the request for hearing under par. (b), the department division may
25extend the time period for conducting the hearing by an additional 45 days if the

1department division provides notice within 45 days of receiving the request for
2hearing under par. (b) that an additional 45 days is necessary for investigation.
AB304,78 3Section 78 . 125.12 (6) (dm) of the statutes is amended to read:
AB304,42,134 125.12 (6) (dm) Within 45 days of receiving any response or request for hearing
5under par. (b) or, if no response or request for hearing is made, within 45 days of the
6date on which a response or request for hearing is due under par. (b), the department
7division may elect to file a complaint in circuit court under sub. (4) that includes all
8allegations of the complaint under par. (a) for which the department division
9determines there is cause to find that a violation of s. 125.54 (7) (a) has occurred. If
10the department division files a complaint in circuit court as provided under this
11paragraph, the department division shall not conduct a hearing under par. (cm) or
12make a written decision under par. (c), but shall proceed with the matter as provided
13under sub. (4).
AB304,79 14Section 79 . 125.12 (6) (e) of the statutes is amended to read:
AB304,42,1815 125.12 (6) (e) If the department division finds the allegations under par. (a) true
16and sufficient, the department division shall either suspend for not less than 10 days
17nor more than 90 days or revoke the wholesaler's permit, and give notice of the
18suspension or revocation to the wholesaler.
AB304,80 19Section 80 . 125.13 of the statutes is amended to read:
AB304,43,2 20125.13 Report of suspension, revocation , or imposition of penalty.
21Whenever a municipal governing body or court revokes or suspends a license or
22permit or imposes a penalty on a licensee or permittee for the violation of this
23chapter, the clerk of the municipality or court revoking or suspending the license or
24imposing the penalty shall, within 10 days after the revocation, suspension, or
25imposition of penalty, mail a report to the department division at Madison,

1Wisconsin, giving the name of the licensee, the address of the licensed premises, and
2a full description of the penalty imposed.
AB304,81 3Section 81 . 125.14 (2) (c) of the statutes is amended to read:
AB304,43,84 125.14 (2) (c) Identification. Any person seizing alcohol beverages or personal
5property and electing to dispose of it under this subsection shall exercise reasonable
6diligence to ascertain the name and address of the owner of the alcohol beverages or
7property and of all persons holding a security interest in the property seized. The
8person shall report his or her findings in writing to the department division.
AB304,82 9Section 82 . 125.14 (2) (d) of the statutes is amended to read:
AB304,43,2110 125.14 (2) (d) Order. Upon conviction of any person for owning, possessing,
11keeping, storing, manufacturing, selling, distributing, or transporting alcohol
12beverages in violation of this chapter or ch. 139, the court shall order part or all of
13the alcohol beverages or personal property seized to be destroyed if it is unfit for sale.
14Alcohol beverages and other personal property fit for sale shall be turned over to the
15department division for disposition. Upon receipt of the confiscated property, the
16department division shall exercise reasonable diligence to ascertain the names and
17addresses of all owners of the property and of all persons holding a security interest
18in the property. If a motor vehicle is confiscated, the department division shall obtain
19the written advice of the department of transportation as to the ownership of the
20motor vehicle and shall make a reasonable search for perfected security interests in
21the vehicle.
AB304,83 22Section 83 . 125.14 (2) (e) of the statutes is amended to read:
AB304,44,1023 125.14 (2) (e) Disposal. The department division shall dispose of the alcohol
24beverages turned over to it by the court by either giving it to law enforcement
25agencies free of charge for use in criminal investigations, selling it to the highest

1bidder if the bidder is a person holding a license or permit issued under this chapter,
2or destroying it, at the discretion of the department division. If the department
3division elects to sell the alcohol beverages, it shall publish a class 2 notice under ch.
4985 asking for sealed bids from qualified bidders. Any items or groups of items in
5the inventory subject to a security interest, the existence of which was established
6in the proceedings for conviction as being bona fide and as having been created
7without the secured party having notice that the items were being used or were to
8be used in connection with the violation, shall be sold separately. The net proceeds
9from the sale, less all costs of seizure, storage, and sale, shall be turned over to the
10secretary of administration and credited to the common school fund.
AB304,84 11Section 84 . 125.14 (2) (f) of the statutes is amended to read:
AB304,45,212 125.14 (2) (f) Sale. Any personal property, other than alcohol beverages, seized
13under par. (a) and fit for sale, shall be turned over by the department division to the
14department of administration for disposal at public auction to the highest bidder, at
15a time and place stated in a notice of sale which describes the property to be sold.
16The sale shall be held in a conveniently accessible place in the county where the
17property was confiscated. A copy of the notice shall be published as a class 2 notice
18under ch. 985. The last insertion shall be at least 10 days before the sale. The
19department of revenue division shall serve a copy of the notice of sale at least 2 weeks
20before the date thereof on all persons who are or may be owners or holders of security
21interests in the property. Any confiscated property worth more than $100 shall be
22sold separately, and the balance of the confiscated property shall be sold in bulk or
23separately at the discretion of the department of administration. The net proceeds
24from the sale, less all costs of seizure, storage, and sale, shall be turned over to the

1secretary of administration. No motor vehicle or motorboat confiscated under this
2section may be sold within 30 days after the date of seizure.
AB304,85 3Section 85 . 125.14 (3) (b) of the statutes is amended to read:
AB304,45,74 125.14 (3) (b) Deadline. The application shall be made within one year after
5the sale of the property. A copy of the application and the order setting a hearing on
6it shall be served on the department division at least 20 days before the date set for
7hearing.
AB304,86 8Section 86 . 125.145 of the statutes is amended to read:
AB304,45,14 9125.145 Prosecutions by attorney general or department division.
10Upon request by the secretary of revenue division, the attorney general may
11represent this state or assist a district attorney in prosecuting any case arising under
12this chapter. The department division may represent this state in prosecuting any
13violation of s. 125.54 (7) (a) or (b) and shall bring any such action in the circuit court
14for Dane County.
AB304,87 15Section 87 . 125.15 (1) of the statutes is amended to read:
AB304,45,1916 125.15 (1) An intoxicating liquor wholesaler, intoxicating liquor retail licensee
17or permittee, or intoxicating liquor trade association that makes a written complaint
18to the department division under s. 125.12 (6) of a violation of s. 125.54 (7) (a) may
19bring an action to enforce the provisions of s. 125.54 (7) if any of the following apply:
AB304,45,2120 (a) The department division has not rendered a decision within the time
21periods specified in s. 125.12 (6) (c) to (d).
AB304,45,2522 (b) The department division has rendered a decision under s. 125.12 (6) in
23which the department division has determined that a violation has occurred but no
24action has been brought in circuit court by the department division, attorney general,
25or a district attorney to prosecute the violation.
AB304,88
1Section 88. 125.17 (6) (a) (intro.) of the statutes is amended to read:
AB304,46,102 125.17 (6) (a) (intro.) Except as provided in par. (b), no municipal governing
3body or designated municipal official may issue an operator's license unless the
4applicant has successfully completed a responsible beverage server training course
5at any location that is offered by a technical college district and that conforms to
6curriculum guidelines specified by the technical college system board or a
7comparable training course, which may include computer-based training and
8testing, that is approved by the department division or the department of safety and
9professional services, or unless the applicant fulfills one of the following
10requirements:
AB304,89 11Section 89 . 125.175 of the statutes is created to read:
AB304,46,16 12125.175 Issuance of operators' permits. (1) Subject to sub. (4), the division
13shall issue an operator's permit to any applicant who is qualified under s. 125.04 (5).
14Operators' permits may not be required other than for the purpose of complying with
15ss. 125.32 (2) and 125.68 (2) or s. 125.06 (3g). Operators' permits may be issued only
16upon written application.
AB304,46,17 17(2) Operators' permits are valid in all municipalities in this state.
AB304,46,19 18(3) The division shall establish a fee for issuance or renewal of an operator's
19permit and shall determine whether the permit shall be valid for one or 2 years.
AB304,46,24 20(4) (a) The division may not issue an operator's permit unless the applicant
21satisfies the criteria for issuance of an operator's license specified in s. 125.17 (6) (a).
22In applying these criteria to an applicant who holds or previously held an operator's
23permit or an operator's license, the division shall treat as synonymous operators'
24permits and operators' licenses.
AB304,47,4
1(b) The division may not require applicants for operators' permits to undergo
2training in addition to that specified in s. 125.17 (6) (a) but may require applicants
3to purchase at cost materials that deal with relevant subjects not covered in the
4course under s. 125.17 (6) (a).
AB304,90 5Section 90 . 125.19 (1) of the statutes is amended to read:
AB304,47,106 125.19 (1) Issuance. The department division shall issue an alcohol beverage
7warehouse permit which authorizes the permittee to store and warehouse alcohol
8beverages in warehouse premises covered by the permit, subject to rules adopted by
9the department division. The permit does not authorize the sale of any alcohol
10beverages.
AB304,91 11Section 91. 125.20 of the statutes is created to read:
AB304,47,12 12125.20 Interest restrictions. (1) Definitions. In this section:
AB304,47,1313 (a) “Distribution permit" means a permit issued under s. 125.28 or 125.54.
AB304,47,1514 (b) “Distribution permittee" means a person holding a distribution permit and
15includes a restricted individual of such a person.
AB304,47,1816 (c) “Production permit" means a permit issued under s. 125.29, 125.295, 125.52,
17or 125.53, a permit issued under s. 125.30 to a brewer in another state, or a permit
18issued under s. 125.58 to a manufacturer, rectifier, or winery in another state.
AB304,47,2019 (d) “Production permittee" means a person holding a production permit and
20includes a restricted individual of such a person.
AB304,47,2121 (e) “Restricted individual" means any of the following:
AB304,47,2322 1. An individual identified on a manager's license or who works or acts in a
23managerial capacity for a permittee or licensee.
AB304,47,2524 2. An individual serving as an officer, director, member, manager, or agent of
25a corporation or limited liability company holding a permit or license.
AB304,48,2
13. An individual holding more than a 10 percent ownership interest in a
2permittee or licensee.
AB304,48,43 (f) “Restricted entity" means an entity holding more than a 10 percent
4ownership interest in a permittee or licensee.
AB304,48,55 (g) “Restricted investor" means a restricted individual or restricted entity.
AB304,48,76 (h) “Retail license or permit" means a Class “A," Class “B,” “ Class A," “Class B,"
7or “Class C" license, a Class “B" or “Class B" permit, or a no-sale event venue permit.
AB304,48,98 (i) “Retail licensee or permittee" means a person holding a retail license or
9permit and includes a restricted individual of such a person.
AB304,48,11 10(2) Producers. (a) No production permittee may hold any interest in any
11distribution permittee.
AB304,48,1312 (b) No production permittee may hold any interest in any retail licensee or
13permittee, except as authorized under s. 125.295.
AB304,48,15 14(3) Distributors. (a) No distribution permittee may hold any interest in any
15retail licensee or permittee.
AB304,48,1716 (b) No distribution permittee may hold any interest in any production
17permittee, except as provided in s. 125.28 (2) (d).
AB304,48,19 18(4) Retailers. (a) No retail licensee or permittee may hold any interest in any
19distribution permittee.
AB304,48,2120 (b) No retail licensee or permittee may hold any interest in any production
21permittee, except as authorized under s. 125.295.
AB304,48,24 22(5) Construction of section; authorized cross-tier activity. (a) For purposes
23of this section and s. 125.01, permittees are categorized under the 3-tier system as
24follows:
AB304,48,2525 1. A production permittee operates within the production tier.
AB304,49,1
12. A distribution permittee operates within the distribution tier.
AB304,49,22 3. A retail licensee or permittee operates within the retail tier.
AB304,49,53 (b) This section does not prohibit a licensee or permittee from engaging in any
4activity that this chapter explicitly authorizes for the type of license or permit held
5or that is explicitly authorized under the terms of the license or permit.
AB304,49,106 (c) To the extent there is a conflict between any provision of subs. (2) to (4) and
7any provision of ss. 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2)
8(a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1), the provisions of ss. 125.25 (2) (b),
9125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3)
10(c), and 125.69 (1) are controlling.
AB304,49,1511 (d) If a license or permit may not be issued to a person under s. 125.25 (2) (b),
12125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3)
13(c), or 125.69 (1), the person may not acquire an interest prohibited under s. 125.25
14(2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30
15(3) (c), or 125.69 (1) after the license or permit has been issued.
AB304,49,18 16(6) Permissible interests. (a) Notwithstanding subs. (2) to (4), a licensee or
17permittee may be owned in part by, or grant an ownership interest to, a restricted
18investor in a different tier if all of the following are satisfied:
AB304,49,2119 1. No single restricted investor holds more than a 10 percent ownership
20interest in the licensee or permittee, including any passive or disregarded entity
21connected to the restricted investor.
AB304,49,2322 2. No restricted investor serves as an officer, director, manager, operator, or
23agent of the licensee or permittee.
AB304,50,3
13. No restricted investor is involved in the day-to-day operations of the
2licensee or permittee or exerts any control over such operations beyond the person's
3ability to vote as an owner.
AB304,50,54 4. The aggregate amount of ownership held by all restricted investors in the
5licensee or permittee does not exceed 49 percent.
AB304,50,66 5. The licensee or permittee discloses all restricted investors to the division.
AB304,50,137 6. Each restricted investor executes an affidavit, on a form prescribed by the
8division, swearing to a complete lack of involvement in the day-to-day operations
9of, and lack of control over, the licensee or permittee beyond the restricted investor's
10ability to vote as an owner. If the restricted investor is a restricted entity, the
11affidavit shall be executed on behalf of the restricted entity by an individual who is
12an officer or director of the restricted entity or who otherwise has management
13authority over the restricted entity.
AB304,50,1614 (b) A licensee or permittee, or a restricted individual of a licensee or permittee,
15may enter into a landlord­tenant relationship with another licensee or permittee
16operating in a different tier if all of the following are satisfied:
AB304,50,1817 1. The lease or rental agreement explicitly states that the landlord has no
18control over or day-to-day involvement in the business of the tenant.
AB304,50,1919 2. No control or involvement in the business of the tenant by the landlord exists.
AB304,50,2220 3. The landlord and tenant maintain compliance with ss. 125.33 and 125.69,
21as applicable and subject to s. 125.33 (2) (hr), and this requirement is set forth in the
22lease or rental agreement.
AB304,50,2423 4. The lease or rental agreement is in writing and disclosed to the division for
24review.
AB304,51,2
1(c) Notwithstanding subs. (2) to (4), a spouse may have an interest in the license
2or permit of the other spouse if all of the following are satisfied:
AB304,51,43 1. The marriage is governed by a valid marital property agreement or
4prenuptial agreement.
AB304,51,65 2. The marital property agreement or prenuptial agreement was disclosed on
6any license or permit application.
AB304,51,87 3. A copy of the marital property agreement or prenuptial agreement is
8provided to the municipal clerk or division prior to issuance of the license or permit.
AB304,51,119 4. Both spouses execute an affidavit, on a form prescribed by the division,
10swearing to a complete lack of involvement in the day-to-day operations of, and lack
11of control over, each respective business.
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