Amendment SA2-SB268

LRBa0785/1

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2023 - 2024 LEGISLATURE

SENATE AMENDMENT 2, TO SENATE BILL 268

November 14, 2023 - Offered by Senator LeMahieu.

SB268-SA2,1,1 At the locations indicated, amend the bill as follows:

SB268-SA2,1,13 1. Page 2, line 1: after “enforcement" insert “; creating the Division of Alcohol Beverages attached to the Department of Revenue; the regulation of alcohol beverages and enforcement of alcohol beverage laws; interest restrictions relating to, and authorized activities of, brewers, brewpubs, wineries, manufacturers, rectifiers, wholesalers, and retailers; shipping alcohol beverages by means of fulfillment houses and common carriers; the consumption of alcohol beverages in a public place; creating a no-sale event venue permit; creating an operator's permit; liquor licenses transferred from one municipality to another; retailers' authorized activities; liquor license quotas; the safe ride program; the presence of underage persons and conduct of other business on licensed premises; the occupational tax on alcohol beverages; transporting certain homemade alcohol beverages into this state; repealing a rule promulgated by the Department of Revenue; granting rule-making authority;".

SB268-SA2,2,1 2. Page 6, line 1: before that line insert:

SB268-SA2,2,2 “ Section 1g. 15.433 (2) of the statutes is created to read:

SB268-SA2,2,8 15.433 (2) Division of alcohol beverages. (a) There is created a division of alcohol beverages attached to the department of revenue under s. 15.03. The administrator of the division shall be appointed outside the classified service. The administrator of the division shall be nominated by the secretary of revenue and with the advice and consent of the senate appointed, to serve at the pleasure of the secretary of revenue.

SB268-SA2,2,12 (b) There is created within the division of alcohol beverages a bureau dedicated to enforcement and a bureau dedicated to legal services, permitting, and reporting, with each bureau headed by a director who reports to, and serves at the pleasure of, the division administrator.

SB268-SA2,2,15 (c) There is created within the division of alcohol beverages a unit dedicated to education and community outreach, headed by an individual who reports to the division administrator.

SB268-SA2,1j Section 1j. 19.42 (13) (q) of the statutes is created to read:

SB268-SA2,2,18 19.42 (13) (q) The administrator and employees of the division of alcohol beverages.

SB268-SA2,1m Section 1m. 20.923 (4) (c) 7. of the statutes is created to read:

SB268-SA2,2,21 20.923 (4) (c) 7. Revenue, department of; division of alcohol beverages: administrator.”.

SB268-SA2,2,22 3. Page 13, line 3: after that line insert:

SB268-SA2,2,23 “ Section 19g. 125.02 (1g) of the statutes is created to read:

SB268-SA2,3,4 125.02 (1g) “Axe throwing facility" means an establishment that provides customers with a venue to engage in the activity of axe throwing and that either derives at least 51 percent of its revenue from fees associated with axe throwing or maintains at the venue at least 5 axe throwing lanes.

SB268-SA2,19m Section 19m. 125.02 (5g) of the statutes is created to read:

SB268-SA2,3,7 125.02 (5g) “Division" means the division of alcohol beverages in the department.”.

SB268-SA2,3,8 4. Page 13, line 4: delete lines 4 to 12 and substitute:

SB268-SA2,3,10 “ Section 20c. 125.02 (6) of the statutes is renumbered 125.02 (6) (intro.) and amended to read:

SB268-SA2,3,11 125.02 (6) (intro.) “Fermented malt beverages" means any of the following:

SB268-SA2,3,14 (a) Any beverage made by the alcohol fermentation of an infusion in potable water of barley malt and hops, with or without unmalted grains or decorticated and degerminated grains or sugar containing 0.5 percent or more of alcohol by volume.

SB268-SA2,21c Section 21c. 125.02 (6) (b) of the statutes is created to read:

SB268-SA2,3,17 125.02 (6) (b) Any beverage recognized by the federal department of the treasury as beer under 27 CFR part 25, except sake or similar products.”.

SB268-SA2,3,18 5. Page 13, line 13: before that line insert:

SB268-SA2,3,19 “ Section 21c. 125.02 (6d) of the statutes is created to read:

SB268-SA2,3,24 125.02 (6d) “Fulfillment house" means any entity, whether located in this state or elsewhere, that handles logistics, including warehousing, packaging, order fulfillment, or shipping services, on behalf of a person holding a direct wine shipper's permit under s. 125.535 for wine that is eligible to be shipped to individuals in this state.

SB268-SA2,21d Section 21d. 125.02 (6g) of the statutes is created to read:

SB268-SA2,4,5 125.02 (6g) “Full-service retail sales" means retail sales of fermented malt beverages or intoxicating liquor, for on-premises or off-premises consumption, or the provision of taste samples of fermented malt beverages or intoxicating liquor, or any combination of these activities.

SB268-SA2,21e Section 21e. 125.02 (12) of the statutes is amended to read:

SB268-SA2,4,9 125.02 (12) “Peace officer" means a sheriff, undersheriff, deputy sheriff, police officer, constable, marshal, deputy marshal or any employee of the department division or of the department of justice authorized to act under this chapter.

SB268-SA2,21f Section 21f. 125.02 (13) of the statutes is amended to read:

SB268-SA2,4,12 125.02 (13) Except as provided in ss. 125.27 (6) and 125.51 (5) (g), “permit” means any permit issued by the department division under this chapter.

SB268-SA2,21g Section 21g. 125.02 (14m) of the statutes is amended to read:

SB268-SA2,4,15 125.02 (14m) “Premises" means the area described in a license or permit, excluding a permit issued under s. 125.175.

SB268-SA2,21h Section 21h. 125.02 (14m) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB268-SA2,4,19 125.02 (14m) “Premises" means the area described in a license or permit, excluding a permit issued under s. 125.175 or 125.24.

SB268-SA2,21i Section 21i. 125.02 (16) of the statutes is renumbered 125.02 (16) (am).

SB268-SA2,21j Section 21j. 125.02 (16) (bm) of the statutes is created to read:

SB268-SA2,4,24 125.02 (16) (bm) “Rectifier” does not include a “Class B” licensee that prepares, stores, or dispenses mixed drinks in advance of sale in compliance with s. 125.51 (3) (bg).

SB268-SA2,21k Section 21k. 125.02 (23) of the statutes is amended to read:

SB268-SA2,5,3 125.02 (23) “Wine collector" means an individual who meets the standards established by the department division by rule and who is registered with the department division as a collector of wine.

SB268-SA2,21L Section 21L. 125.025 of the statutes is created to read:

SB268-SA2,5,12 125.025 Powers and duties of division. (1) Administration; personnel. (a) The division, under the direction and supervision of the administrator, shall administer this chapter and have jurisdiction over alcohol beverages regulation, enforcement, and education in this state. The division is responsible for administering regulatory programs; promoting regulatory transparency; promoting statutory changes to create clarity, consistency, and simplicity in alcohol beverage regulatory requirements; and ensuring active, consistent enforcement of alcohol beverage laws.

SB268-SA2,5,17 (b) The administrator may appoint, in the classified service, special agents and other employees necessary to carry out the permitting, audit, legal, education, and enforcement functions of the division. The division shall employ no fewer than 10 alcohol beverage field agents to perform enforcement activities under the direction of the director of the bureau created under s. 15.433 (2) (b) dedicated to enforcement.

SB268-SA2,5,20 (c) The administrator and any employee of the division may not be employed by or have a substantial financial interest in the alcohol beverages industry or any business subject to the division's jurisdiction.

SB268-SA2,5,23 (2) Police powers. The division shall enforce, and the duly authorized employees of the division shall have all necessary police powers to prevent violations of, this chapter.

SB268-SA2,6,9 (3) Inspection for enforcement. Duly authorized employees of the department of justice and the division and any sheriff, police officer, marshal, or constable, within their respective jurisdictions, may, during normal business hours, enter any licensed premises, and examine the books, papers, and records of any brewer, brewpub, manufacturer, rectifier, wholesaler, or retailer and may inspect and examine, according to law, any premises where fermented malt beverages or intoxicating liquors are manufactured, sold, exposed for sale, possessed, or stored, for the purpose of inspecting the same and determining whether this chapter is being complied with. Any refusal to permit such examination of such premises is sufficient grounds under s. 125.12 for revocation or suspension of any license or permit issued under this chapter and is punishable under s. 125.11 (3).

SB268-SA2,6,12 (4) List of permittees. The division shall provide the department with all information necessary for the department to publish the information specified in s. 139.11 (4) (a) 2. and (b) 2.

SB268-SA2,21m Section 21m. 125.025 (3) of the statutes, as created by 2023 Wisconsin Act .... (this act), is amended to read:

SB268-SA2,7,2 125.025 (3) Inspection for enforcement. Duly authorized employees of the department of justice and the division and any sheriff, police officer, marshal, or constable, within their respective jurisdictions, may, during normal business hours, enter any licensed premises, and examine the books, papers, and records of any brewer, brewpub, manufacturer, rectifier, wholesaler, or retailer, fulfillment house, or common carrier and may inspect and examine, according to law, any premises where fermented malt beverages or intoxicating liquors are manufactured, sold, exposed for sale, possessed, or stored, for the purpose of inspecting the same and determining whether this chapter is being complied with. Any refusal to permit such examination of such premises is sufficient grounds under s. 125.12 for revocation or suspension of any license or permit issued under this chapter and is punishable under s. 125.11 (3).

SB268-SA2,21n Section 21n. 125.03 (title) of the statutes is amended to read:

SB268-SA2,7,4 125.03 (title) Department Division rule making.

SB268-SA2,21o Section 21o. 125.03 (1) (a) of the statutes is amended to read:

SB268-SA2,7,8 125.03 (1) (a) The department, in furtherance of effective control, division may promulgate rules consistent with this chapter and ch. 139 to carry out the division's duties under this chapter.

SB268-SA2,21p Section 21p. 125.03 (1) (b) of the statutes is amended to read:

SB268-SA2,7,13 125.03 (1) (b) The department division shall promulgate rules providing for registration of wine collectors and establishing standards of eligibility for registration as a wine collector. The rules shall also specify the form and manner of notice required under s. 125.06 (11m).

SB268-SA2,21q Section 21q. 125.03 (2) of the statutes is amended to read:

SB268-SA2,7,20 125.03 (2) Containers. The department division may by rule prescribe the standard size, form, or character of any container in which intoxicating liquor may be sold in this state except that the department division may not set the size of containers in which intoxicating liquor, except wine containing not more than 21 percent of alcohol by volume, may be sold at a capacity greater than 1.75 liters (59.1752 fluid ounces).

SB268-SA2,21r Section 21r. 125.04 (3) (a) (intro.) of the statutes is amended to read:

SB268-SA2,7,25 125.04 (3) (a) Contents. (intro.) The department division shall prepare an application form for each kind of license, other than a manager's or operator's license, and for each kind of permit issued under this chapter. Each form shall require all of the following information:

SB268-SA2,21rm Section 21rm. 125.04 (3) (a) (intro.) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB268-SA2,8,6 125.04 (3) (a) Contents. (intro.) The division shall prepare an application form for each kind of license, other than a manager's or operator's license, and for each kind of permit issued under this chapter. Each form, except an operator's permit form, shall require all of the following information:

SB268-SA2,21s Section 21s. 125.04 (3) (a) 1. of the statutes is amended to read:

SB268-SA2,8,10 125.04 (3) (a) 1. A history of the applicant relevant to the applicant's fitness to hold a license or permit, including whether the applicant is a restricted investor requiring disclosure under s. 125.20 (6) (a) 5. and the basis of this status.

SB268-SA2,21t Section 21t. 125.04 (3) (b) of the statutes is amended to read:

SB268-SA2,8,14 125.04 (3) (b) Application for renewing. The department division may prepare a simplified application form for renewal of each kind of license or permit which requires only information pertinent to renewal.

SB268-SA2,21u Section 21u. 125.04 (3) (bm) (intro.) of the statutes is amended to read:

SB268-SA2,8,18 125.04 (3) (bm) Signature on, and notarization of, forms. (intro.) The application forms prepared by the department division for a license or permit under this chapter may not require any of the following:

SB268-SA2,21v Section 21v. 125.04 (3) (c) of the statutes is amended to read:

SB268-SA2,8,21 125.04 (3) (c) Distribution. The department division shall make one copy of each kind of license application that it prepares available to each municipality.

SB268-SA2,21w Section 21w. 125.04 (3) (d) 1. of the statutes is amended to read:

SB268-SA2,8,24 125.04 (3) (d) 1. An application form prepared by the department division shall be used by each applicant for a permit.

SB268-SA2,21x Section 21x. 125.04 (3) (d) 2. of the statutes is amended to read: