Amendment SA2-SB268

SB268-SA2,53,21 125.28 (1) (a) Subject to par. (b), the department division may issue permits to wholesalers for the sale of fermented malt beverages from premises within this state, which premises shall comply with the requirements under s. 125.34 (2). Subject to s. 125.34, and except as provided in pars. (e) and (f), a wholesaler's permit authorizes sales of fermented malt beverages only in original packages or containers to retailers or wholesalers.

SB268-SA2,26bp Section 26bp. 125.28 (1) (b) of the statutes is amended to read:

SB268-SA2,54,8 125.28 (1) (b) If a wholesaler does not maintain any warehouse in this state but is licensed and maintains a warehouse in an adjoining state that allows wholesalers holding a wholesaler's permit in this state to deliver fermented malt beverages to retailers in the adjoining state without warehousing in that state and that further requires that all fermented malt beverages be first unloaded and physically at rest at, and distributed from, the warehouse of the licensed wholesaler in that state, the wholesaler's permit shall be issued by the department division. Notwithstanding s. 125.04 (5) (a) 2. and (c) and (6), the department division may issue the wholesaler's permit to a wholesaler described in this paragraph who is a natural person and not a resident of this state or that is a corporation or limited liability company and has not appointed an agent in this state.

SB268-SA2,26bq Section 26bq. 125.28 (2) (b) (intro.) of the statutes is amended to read:

SB268-SA2,54,11 125.28 (2) (b) (intro.) A Subject to s. 125.20 (6), a wholesaler's permit may not be issued to any of the following:

SB268-SA2,26br Section 26br. 125.28 (2) (b) 1. a. of the statutes is amended to read:

SB268-SA2,54,14 125.28 (2) (b) 1. a. A Class “A" license issued under s. 125.25 or “Class A” license issued under s. 125.51 (2).

SB268-SA2,26bs Section 26bs. 125.28 (2) (b) 1. b. of the statutes is amended to read:

SB268-SA2,54,17 125.28 (2) (b) 1. b. A Class “B" license issued under s. 125.26, “Class B” license issued under s. 125.51 (3), or “Class C” license issued under s. 125.51 (3m).

SB268-SA2,26bt Section 26bt. 125.28 (2) (b) 1. c. of the statutes is amended to read:

SB268-SA2,54,20 125.28 (2) (b) 1. c. A Class “B" permit issued under s. 125.27 or “Class B” permit issued under s. 125.51 (5).

SB268-SA2,26bu Section 26bu. 125.28 (2) (b) 1. g., h. and i. of the statutes are created to read:

SB268-SA2,54,22 125.28 (2) (b) 1. g. A winery permit issued under s. 125.53.

SB268-SA2,54,23 h. A manufacturer's or rectifier's permit issued under s. 125.52.

SB268-SA2,54,24 i. An out-of-state shipper's permit issued under s. 125.30 or 125.58.

SB268-SA2,26bv Section 26bv. 125.28 (2) (b) 1. j. of the statutes is created to read:

SB268-SA2,55,1 125.28 (2) (b) 1. j. A no-sale event venue permit issued under s. 125.24.

SB268-SA2,26bw Section 26bw. 125.28 (2) (b) 2. of the statutes is amended to read:

SB268-SA2,55,5 125.28 (2) (b) 2. Except as provided in s. 125.33 (2m) Subject to s. 125.20 (6), a person who has a direct or indirect ownership an interest in a premises operating under person holding one or more of the licenses or permits listed in subd. 1. a. to f.

SB268-SA2,26bx Section 26bx. 125.28 (2) (e) of the statutes is repealed.

SB268-SA2,26by Section 26by. 125.28 (4) of the statutes is amended to read:

SB268-SA2,55,13 125.28 (4) The amount of the permit fee shall be established by the department division and shall be an amount that is sufficient to fund one special agent position dedicated to alcohol and tobacco enforcement at in the department division, but the permit fee may not exceed $2,500 per year or fractional part thereof. All permit fees received under this subsection shall be credited to the appropriation account under s. 20.566 (1) (hd).

SB268-SA2,26cc Section 26cc. 125.28 (5) (b) of the statutes is amended to read:

SB268-SA2,55,21 125.28 (5) (b) A wholesaler under this section shall annually sell and deliver fermented malt beverages to at least 25 retail licensees or other wholesalers that do not have any direct or indirect an interest in each other or in the wholesaler. The department division may not issue a permit under this section unless the applicant represents to the department division an intention to satisfy this requirement, and may not renew a permit issued under this section unless the wholesaler demonstrates that this requirement has been satisfied.

SB268-SA2,26cd Section 26cd. 125.28 (5) (d) 3. of the statutes is amended to read:

SB268-SA2,55,25 125.28 (5) (d) 3. This paragraph shall not affect the authority of any municipality or the department division to revoke, suspend, or refuse to renew or issue a license or permit under s. 125.12.

SB268-SA2,26ce Section 26ce. 125.28 (5) (e) of the statutes is amended to read:

SB268-SA2,56,11 125.28 (5) (e) The department division shall promulgate rules to administer and enforce the requirements under this subsection. The rules shall ensure coordination between the department's division'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 division personnel generally familiar with activities of fermented malt beverages wholesalers. The department division 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 division of such warehouse facilities.

SB268-SA2,26cf Section 26cf. 125.29 (1) of the statutes is amended to read:

SB268-SA2,56,15 125.29 (1) Permit. No person may operate as a brewer unless that person obtains a permit from the department division. A permit under this section may only be issued to a person who holds a valid certificate issued under s. 73.03 (50).

SB268-SA2,26cg Section 26cg. 125.29 (2) (a) of the statutes is repealed and recreated to read:

SB268-SA2,56,19 125.29 (2) (a) Subject to s. 125.20 (6), a brewer's permit may not be issued to any person who holds, or has an interest in a licensee or permittee holding, any of the following:

SB268-SA2,56,21 1. A Class “A" license issued under s. 125.25 or “Class A” license issued under s. 125.51 (2).

SB268-SA2,56,23 2. A Class “B" license issued under s. 125.26, “Class B” license issued under s. 125.51 (3), or “Class C” license issued under s. 125.51 (3m).

SB268-SA2,56,25 3. A Class “B" permit issued under s. 125.27 or “Class B” permit issued under s. 125.51 (5).

SB268-SA2,57,2 4. Except as provided in par. (c), a wholesaler's permit issued under s. 125.28 or 125.54.

SB268-SA2,57,3 5. A brewpub permit issued under s. 125.295.

SB268-SA2,26ch Section 26ch. 125.29 (2) (a) 6. of the statutes is created to read:

SB268-SA2,57,5 125.29 (2) (a) 6. A no-sale event venue permit under s. 125.24.

SB268-SA2,26ci Section 26ci. 125.29 (2) (b) 1. and 2. of the statutes are repealed.

SB268-SA2,26cj Section 26cj. 125.29 (2) (b) 3. of the statutes is renumbered 125.29 (2) (c).

SB268-SA2,26ck Section 26ck. 125.29 (3) (intro.) of the statutes is amended to read:

SB268-SA2,57,10 125.29 (3) Authorized activities. (intro.) The department division shall issue brewer's permits to eligible applicants authorizing all of the following:

SB268-SA2,26cm Section 26cm. 125.29 (3) (c) of the statutes is amended to read:

SB268-SA2,57,15 125.29 (3) (c) The transportation of fermented malt beverages between the brewery premises and any depot or, warehouse, or full-service retail outlet maintained by the brewer, off-site retail outlet established by the brewer, or other premises for which the brewer holds a permit under this chapter.

SB268-SA2,26cn Section 26cn. 125.29 (3) (dm) of the statutes is created to read:

SB268-SA2,57,20 125.29 (3) (dm) The sale, shipment, transportation, and delivery of fermented malt beverages, in bulk or in any state of packaging, that have been manufactured by the brewer to another brewer holding a permit under this section, and the receipt of the fermented malt beverages by the other brewer.

SB268-SA2,26co Section 26co. 125.29 (3) (e) of the statutes is amended to read:

SB268-SA2,58,2 125.29 (3) (e) Notwithstanding ss. 125.04 (9) and 125.09 (1), and subject to sub. (7) (h), the retail sale of fermented malt beverages that have been manufactured on the brewery premises or on other premises of the brewer for on-premise consumption by individuals at the brewery premises or an off-site retail outlet established by the brewer.

SB268-SA2,26cp Section 26cp. 125.29 (3) (f) of the statutes is amended to read:

SB268-SA2,58,9 125.29 (3) (f) Notwithstanding ss. 125.04 (9) and 125.09 (1), and subject to sub. (7) (h), the retail sale to individuals of fermented malt beverages, in original unopened packages or containers, that have been manufactured on the brewery premises or on other premises of the brewer for off-premise consumption by individuals, if the sale occurs at the brewery premises or at an off-site retail outlet established by the brewer.

SB268-SA2,26cq Section 26cq. 125.29 (3) (g) of the statutes is repealed.

SB268-SA2,26cr Section 26cr. 125.29 (3) (h) of the statutes is renumbered 125.29 (3) (h) (intro.) and amended to read:

SB268-SA2,58,16 125.29 (3) (h) (intro.) Notwithstanding ss. 125.04 (9) and 125.09 (1), the retail sale of intoxicating liquor, for on-premise on-premises consumption by individuals at the brewery premises or an off-site retail outlet established by the brewer, if all of the following apply:

SB268-SA2,58,18 1. The brewer held, on June 1, 2011, a license or permit authorizing the retail sale of intoxicating liquor and if at the location.

SB268-SA2,58,20 2. The intoxicating liquor has been purchased by the brewer from a wholesaler holding a permit under s. 125.54.

SB268-SA2,26cs Section 26cs. 125.29 (3) (h) 3. of the statutes is created to read:

SB268-SA2,58,23 125.29 (3) (h) 3. The brewer is not eligible to make full-service retail sales under sub. (7) at the location.

SB268-SA2,26ct Section 26ct. 125.29 (3) (i) of the statutes is amended to read:

SB268-SA2,59,4 125.29 (3) (i) The provision of free taste samples on the brewery premises, at an off-site retail outlet established by the brewer, or at the brewer's full-service retail outlet if the taste samples are of alcohol beverages the brewer is authorized to sell under sub. (3) (e) and (f) or (7) (c) or as authorized under s. 125.33 (12).

SB268-SA2,26cu Section 26cu. 125.29 (6) of the statutes is amended to read:

SB268-SA2,59,15 125.29 (6) Restaurants. A brewer may operate a restaurant on the brewery premises and, at an off-site retail outlet established by the brewer. A brewer may not operate a restaurant at any other location except that a brewer may possess or hold an indirect interest in a Class “B" license for not more than 20 restaurants in each of which the sale of alcohol beverages accounts for less than 60 percent of the restaurant's gross receipts if no fermented malt beverages manufactured by the brewer are offered for sale in any of these restaurants, and at any full-service retail outlet under sub. (7). Unless engaged in retail sales under sub. (7), a brewer operating a restaurant may only sell alcohol beverages that have been manufactured under the brewer's own brewer's permit.

SB268-SA2,26cv Section 26cv. 125.29 (7) and (8) of the statutes are created to read:

SB268-SA2,59,21 125.29 (7) Retail sales; full-service retail outlets. (a) 1. Notwithstanding ss. 125.04 (9) and 125.09 (1), a brewer may make retail sales, on the brewery premises, of fermented malt beverages that have been manufactured by the brewer on the brewery premises or on other premises of the brewer, for on-premises or off-premises consumption.

SB268-SA2,59,25 2. Notwithstanding ss. 125.04 (9) and 125.09 (1), if a brewer manufactured, on all brewery premises operated by the brewer in this state, a cumulative total of at least 250 barrels of fermented malt beverages in any one of the 3 preceding calendar years, the brewer may engage in full-service retail sales on the brewery premises.

SB268-SA2,60,9 (b) Notwithstanding ss. 125.04 (9) and 125.09 (1), and subject to pars. (d) and (g), if a brewer manufactured, on all brewery premises operated by the brewer in this state, a cumulative total of at least 250 barrels of fermented malt beverages in any one of the 3 preceding calendar years, the brewer may engage in full-service retail sales at off-site locations identified in the brewer's permit. Subject to pars. (f) and (g), the number of retail sales locations a brewer is allowed in addition to the brewery premises is determined by the cumulative volume of fermented malt beverages the brewer manufactured on all brewery premises operated by the brewer in this state in any one of the 3 preceding calendar years, as follows:

SB268-SA2,60,12 1. If the brewer's cumulative volume in a year was at least 250 barrels of fermented malt beverages but less than 2,500 barrels of fermented malt beverages, the brewer may establish one full-service retail outlet.

SB268-SA2,60,15 2. If the brewer's cumulative volume in a year was at least 2,500 barrels of fermented malt beverages but less than 7,500 barrels of fermented malt beverages, the brewer may establish not more than 2 full-service retail outlets.

SB268-SA2,60,18 3. If the brewer's cumulative volume in a year was at least 7,500 barrels of fermented malt beverages, the brewer may establish not more than 3 full-service retail outlets.

SB268-SA2,60,25 (c) 1. Except as provided in subd. 2. and par. (f), a brewer may make full-service retail sales of alcohol beverages on the brewery premises and at any of its full-service retail outlets only if the alcohol beverages were purchased by the brewer from a wholesaler holding a permit under s. 125.28 or 125.54, from a brewer authorized to make sales to retailers under sub. (3m), from a brewpub authorized to make sales to retailers under s. 125.295 (1) (g), or from a permittee under s. 125.30 authorized to make sales to retailers under s. 125.30 (4).

SB268-SA2,61,3 2. A brewer is not required to purchase from another permittee fermented malt beverages manufactured by the brewer that the brewer sells at retail on the brewery premises or at a full-service retail outlet of the brewer.

SB268-SA2,61,6 3. Subject to subd. 2. and par. (f), a brewer engaged in full-service retail sales on brewery premises or at a full-service retail outlet of the brewer is subject to ss. 125.33 (9) and 125.69 (6) to the same extent as if the brewer were a retail licensee.

SB268-SA2,61,10 (d) 1. A brewer may not commence sales of alcohol beverages at a full-service retail outlet unless, prior to commencing such sales, the brewer receives approval from the municipality in which the full-service retail outlet is located and from the division as provided in par. (g).

SB268-SA2,61,18 2. Subject to par. (f), a municipality may limit the scope of alcohol beverages offered for sale at a full-service retail outlet only with respect to alcohol beverages that are not of the same type as those produced by the person holding the brewer's permit. A municipality may not limit the sale, at a full-service retail outlet, of alcohol beverages produced by the person holding the brewer's permit. A municipality may not limit the scope of alcohol beverages offered for sale under sub. (3) (h). If a municipality limits the scope of alcohol beverages offered for sale, the provision of taste samples is limited to those alcohol beverages authorized to be sold.

SB268-SA2,61,23 3. Except as provided in subd. 2., a municipality's approval under subd. 1. shall be based on the same standards and criteria that the municipality has established by ordinance for the evaluation and approval of retail license applications. A municipality may not impose any requirement or restriction in connection with the approval under subd. 1. that the municipality does not impose on retail licensees.

SB268-SA2,62,3 (e) If a brewer operates a restaurant as provided in sub. (6) and is authorized under this subsection to make retail sales of wine at the restaurant, the brewer may make retail sales of wine in an opened original bottle, in a quantity not to exceed one bottle, for consumption both at the restaurant and away from the restaurant if all of the following apply:

SB268-SA2,62,4 1. The purchaser of the wine orders food to be consumed at the restaurant.

SB268-SA2,62,6 2. The brewer provides a dated receipt that identifies the purchase of the food and the bottle of wine.

SB268-SA2,62,12 3. Prior to the opened, partially consumed bottle of wine being taken away from the restaurant, the brewer securely reinserts the cork into the bottle to the point where the top of the cork is even with the top of the bottle, or securely reattaches the original cap to the bottle, and the cork is reinserted or the cap is reattached at a time other than during the hours in which the brewer is prohibited under sub. (8) (b) from making retail sales for off-premises consumption.

SB268-SA2,62,23 (f) 1. If a brewer may establish one or more full-service retail outlets under pars. (b) and (g) and the brewer also holds a manufacturer's or rectifier's permit or winery permit or both and, as such, may establish full-service retail outlets under s. 125.52 (4) (b) and (g) or 125.53 (3) (b) and (g), the aggregate number of full-service retail outlets that may be established is the maximum number authorized under par. (b), under s. 125.52 (4) (b), or under s. 125.53 (3) (b), whichever is greatest, but not exceeding 3 full-service retail outlets. Under these circumstances, each authorized full-service retail outlet shall serve as the full-service retail outlet associated with each applicable permit, regardless of whether the permittee would otherwise be entitled to fewer full-service retail outlets when calculated under par. (b) or s. 125.52 (4) (b) or 125.53 (3) (b).

SB268-SA2,63,4 2. If a brewer may engage in full-service retail sales on the brewery premises as provided in par. (a) 2. and the brewer also holds a manufacturer's or rectifier's permit or winery permit or both, the brewer may make retail sales on the brewery premises of intoxicating liquor produced under its manufacturer's or rectifier's permit or winery permit without first purchasing the intoxicating liquor from a wholesaler holding a permit under s. 125.54.

SB268-SA2,63,8 3. If a person holds more than one brewer's permit under this section, the retail sales authority under this subsection for brewery premises applies with respect to each brewer's permit, but the limit on full-service retail outlets is an aggregate maximum, regardless of the number of brewer's permits held.

SB268-SA2,63,11 (g) 1. An application for a brewer's permit, including an application for an amendment to the brewer's permit, shall specify each full-service retail outlet of the brewer and particularly describe the premises of the full-service retail outlet.

SB268-SA2,63,18 2. The division shall establish a process for approval of a brewer's full-service retail outlet and for revocation of this approval. The division shall approve a brewer's full-service retail outlet, and may not revoke this approval, unless the brewer has violated a provision of this chapter related to full-service retail outlets. The division's failure to approve, or revocation of approval of, a full-service retail outlet described in a brewer's application or permit does not affect any other full-service retail outlet or the brewery premises as described in the application or permit.

SB268-SA2,63,22 3. If the division approves a full-service retail outlet, the brewer's permit, as initially issued or as amended, shall particularly describe the premises constituting the full-service retail outlet, which shall be considered part of the premises under the brewer's permit.

SB268-SA2,63,25 4. If the division approves a full-service retail outlet, the agent appointed under s. 125.04 (6) for the brewer's permit shall also serve as the agent for the full-service retail outlet.

SB268-SA2,64,5 5. Section 125.04 (12) (a) does not apply to a brewer's full-service retail outlet. Upon notice to the division, a brewer may relocate any full-service retail outlet to a new location within this state once per calendar year, except that one full-service retail outlet of a brewer may be relocated without limitation on frequency in each calendar year.

SB268-SA2,64,8 (h) A brewer that is eligible to establish a full-service retail outlet under this subsection is not authorized to make retail sales of fermented malt beverages at an off-site retail outlet under sub. (3) (e) and (f).

SB268-SA2,64,14 (8) Closing hours. (a) On brewery premises, no person may sell alcohol beverages at retail for on-premises consumption, provide taste samples of alcohol beverages, or consume alcohol beverages during the closing hours applicable to a Class “B" licensee under s. 125.32 (3) (a). A full-service retail outlet under sub. (7) shall be subject to the same closing hours applicable to a Class “B" licensee under s. 125.32 (3) (a).