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LRB-1246/1
ARG:kjf
2017 - 2018 LEGISLATURE
April 24, 2017 - Introduced by Representatives Kooyenga, Skowronski and
Macco, cosponsored by Senators Vukmir, Kapenga and Stroebel. Referred to
Committee on State Affairs.
AB262,1,4 1An Act to create 125.26 (2) (b) 3., 125.29 (2) (c), 125.29 (3) (k) and 125.33 (2t) of
2the statutes; relating to: interest restrictions between brewers and retailers,
3and authorized activities of brewers, in connection with a certain
4redevelopment project in the city of Milwaukee.
Analysis by the Legislative Reference Bureau
This bill creates certain exceptions under the alcohol beverage laws that apply
with respect to a redevelopment project in the city of Milwaukee and that allow a
common ownership interest between a brewer and a beer retailer and allow a brewer
to make retail sales of intoxicating liquor on brewery premises.
Under current law, with limited exceptions, 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 licensed premises and is generally held by such
retailers as taverns and restaurants. A Class “B” retail beer license may not be
issued to a brewer and a Class “B” beer retailer may not be issued a brewer's permit.
Subject to numerous exceptions, a brewer also may not give, sell, or lease, or
otherwise furnish, anything of value to a Class “B” beer retailer.
This bill specifies that a brewer may have a direct or indirect ownership interest
in a Class “B” beer retailer, and a Class “B” beer retailer may have a direct or indirect
ownership interest in a brewer, if 1) the ownership interest arises in connection with
a certain redevelopment project in the city of Milwaukee involving the former site
of a historic Milwaukee brewery; 2) the brewer has or will have brewery premises

within the redevelopment area; 3) the ownership interest does not extend to brewery
premises or Class “B” licensed premises outside the redevelopment area; and 4) no
brewer's permit is issued to the Class “B” beer retailer and no Class “B” retail beer
license is issued to the brewer. The bill also allows a brewer to lease real property
to a Class “B” beer retailer, for a fair consideration, if the real property is part of this
redevelopment project.
Under current law, a brewer may, under its brewer's permit and without a retail
license, make retail sales of its own beer and other Wisconsin-made beer at the
brewery premises and one off-site retail outlet. A brewer may make retail sales of
intoxicating liquor, which means wine and distilled spirits, at the brewery premises
and the brewer's off-site retail outlet only if the brewer held, on June 1, 2011, a retail
license authorizing the sale of intoxicating liquor.
This bill allows a brewer to also make retail sales of intoxicating liquor at the
brewery premises if the brewery premises was established in connection with this
redevelopment project.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB262,1 1Section 1. 125.26 (2) (b) 3. of the statutes is created to read:
AB262,2,42 125.26 (2) (b) 3. Notwithstanding subd. 1., a brewer may have a direct or
3indirect ownership interest in a Class “B” licensee, and a Class “B” licensee may have
4a direct or indirect ownership interest in a brewer, if all of the following apply:
AB262,2,85 a. The ownership interest arises in connection with a project for the
6redevelopment of property within the city of Milwaukee that is located immediately
7east of I 43 and that was formerly the site of a historic Milwaukee brewery that
8ceased brewing on the site in 1996.
AB262,2,109 b. The brewer holds, or has applied for issuance or transfer of, a brewer's permit
10for premises within the redevelopment area described in subd. 3. a.
AB262,2,1211 c. The ownership interest does not extend to brewery premises or Class “B”
12premises outside the redevelopment area described in subd. 3. a.
AB262,2,1413 d. No brewer's permit is issued to the Class “B” licensee and no Class “B” license
14is issued to the brewer.
AB262,2
1Section 2. 125.29 (2) (c) of the statutes is created to read:
AB262,3,42 125.29 (2) (c) Notwithstanding par. (a), a brewer may have a direct or indirect
3ownership interest in a Class “B” licensee, and a Class “B” licensee may have a direct
4or indirect ownership interest in a brewer, if all of the following apply:
AB262,3,85 1. The ownership interest arises in connection with a project for the
6redevelopment of property within the city of Milwaukee that is located immediately
7east of I 43 and that was formerly the site of a historic Milwaukee brewery that
8ceased brewing on the site in 1996.
AB262,3,109 2. The brewer holds, or has applied for issuance or transfer of, a brewer's permit
10for premises within the redevelopment area described in subd. 1.
AB262,3,1211 3. The ownership interest does not extend to brewery premises or Class “B”
12premises outside the redevelopment area described in subd. 1.
AB262,3,1413 d. No brewer's permit is issued to the Class “B” licensee and no Class “B” license
14is issued to the brewer.
AB262,3 15Section 3. 125.29 (3) (k) of the statutes is created to read:
AB262,3,1816 125.29 (3) (k) Notwithstanding ss. 125.04 (9) and 125.09 (1), the retail sale of
17intoxicating liquor, for on-premise consumption by individuals at the brewery
18premises, if all of the following apply:
AB262,3,2219 1. The brewery premises was established in connection with a project for the
20redevelopment of property within the city of Milwaukee that is located immediately
21east of I 43 and that was formerly the site of a historic Milwaukee brewery that
22ceased brewing on the site in 1996.
AB262,3,2423 2. The intoxicating liquor has been purchased by the brewer from a wholesaler
24holding a permit under s. 125.54.
AB262,4 25Section 4. 125.33 (2t) of the statutes is created to read:
AB262,4,6
1125.33 (2t) Exception for certain redevelopment project. (a)
2Notwithstanding the prohibitions in sub. (1), a brewer may lease real property to a
3Class “B” licensee, for a fair consideration, if the real property is part of a
4redevelopment project within the city of Milwaukee that is located immediately east
5of I 43 and that was formerly the site of a historic Milwaukee brewery that ceased
6brewing on the site in 1996.
AB262,4,107 (b) Notwithstanding the prohibitions in sub. (1), a brewer may make an
8investment in or with, or participate in a joint business venture with, a Class “B”
9licensee if the result of the investment or venture satisfies the requirements specified
10in s. 125.29 (2) (c).
AB262,4,1411 (c) As with the prohibitions in sub. (1), the exceptions under this subsection
12apply with respect to a brewer both directly and indirectly, including through a
13subsidiary or affiliate corporation or limited liability company or any officer, director,
14stockholder, partner, or member thereof.
AB262,4,1515 (End)
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