Amendment SA2-SB268

SB268-SA2,25,19 125.14 (2) (e) Disposal. The department division shall dispose of the alcohol beverages turned over to it by the court by either giving it to law enforcement agencies free of charge for use in criminal investigations, selling it to the highest bidder if the bidder is a person holding a license or permit issued under this chapter, or destroying it, at the discretion of the department division. If the department division elects to sell the alcohol beverages, it shall publish a class 2 notice under ch. 985 asking for sealed bids from qualified bidders. Any items or groups of items in the inventory subject to a security interest, the existence of which was established in the proceedings for conviction as being bona fide and as having been created without the secured party having notice that the items were being used or were to be used in connection with the violation, shall be sold separately. The net proceeds from the sale, less all costs of seizure, storage, and sale, shall be turned over to the secretary of administration and credited to the common school fund.

SB268-SA2,26af Section 26af. 125.14 (2) (f) of the statutes is amended to read:

SB268-SA2,26,10 125.14 (2) (f) Sale. Any personal property, other than alcohol beverages, seized under par. (a) and fit for sale, shall be turned over by the department division to the department of administration for disposal at public auction to the highest bidder, at a time and place stated in a notice of sale which describes the property to be sold. The sale shall be held in a conveniently accessible place in the county where the property was confiscated. A copy of the notice shall be published as a class 2 notice under ch. 985. The last insertion shall be at least 10 days before the sale. The department of revenue division shall serve a copy of the notice of sale at least 2 weeks before the date thereof on all persons who are or may be owners or holders of security interests in the property. Any confiscated property worth more than $100 shall be sold separately, and the balance of the confiscated property shall be sold in bulk or separately at the discretion of the department of administration. The net proceeds from the sale, less all costs of seizure, storage, and sale, shall be turned over to the secretary of administration. No motor vehicle or motorboat confiscated under this section may be sold within 30 days after the date of seizure.

SB268-SA2,26ag Section 26ag. 125.14 (3) (b) of the statutes is amended to read:

SB268-SA2,26,15 125.14 (3) (b) Deadline. The application shall be made within one year after the sale of the property. A copy of the application and the order setting a hearing on it shall be served on the department division at least 20 days before the date set for hearing.

SB268-SA2,26ah Section 26ah. 125.145 of the statutes is amended to read:

SB268-SA2,26,22 125.145 Prosecutions by attorney general or department division. Upon request by the secretary of revenue division, the attorney general may represent this state or assist a district attorney in prosecuting any case arising under this chapter. The department division may represent this state in prosecuting any violation of s. 125.54 (7) (a) or (b) and shall bring any such action in the circuit court for Dane County.

SB268-SA2,26ai Section 26ai. 125.15 (1) of the statutes is amended to read:

SB268-SA2,27,2 125.15 (1) An intoxicating liquor wholesaler, intoxicating liquor retail licensee or permittee, or intoxicating liquor trade association that makes a written complaint to the department division under s. 125.12 (6) of a violation of s. 125.54 (7) (a) may bring an action to enforce the provisions of s. 125.54 (7) if any of the following apply:

SB268-SA2,27,4 (a) The department division has not rendered a decision within the time periods specified in s. 125.12 (6) (c) to (d).

SB268-SA2,27,8 (b) The department division has rendered a decision under s. 125.12 (6) in which the department division has determined that a violation has occurred but no action has been brought in circuit court by the department division, attorney general, or a district attorney to prosecute the violation.

SB268-SA2,26aj Section 26aj. 125.17 (6) (a) (intro.) of the statutes is amended to read:

SB268-SA2,27,18 125.17 (6) (a) (intro.) Except as provided in par. (b), no municipal governing body or designated municipal official may issue an operator's license unless the applicant has successfully completed a responsible beverage server training course at any location that is offered by a technical college district and that conforms to curriculum guidelines specified by the technical college system board or a comparable training course, which may include computer-based training and testing, that is approved by the department division or the department of safety and professional services, or unless the applicant fulfills one of the following requirements:

SB268-SA2,26ak Section 26ak. 125.175 of the statutes is created to read:

SB268-SA2,27,24 125.175 Issuance of operators' permits. (1) Subject to sub. (4), the division shall issue an operator's permit to any applicant who is qualified under s. 125.04 (5). Operators' permits may not be required other than for the purpose of complying with ss. 125.32 (2) and 125.68 (2) or s. 125.06 (3g). Operators' permits may be issued only upon written application.

SB268-SA2,27,25 (2) Operators' permits are valid in all municipalities in this state.

SB268-SA2,28,2 (3) The division shall establish a fee for issuance or renewal of an operator's permit and shall determine whether the permit shall be valid for one or 2 years.

SB268-SA2,28,7 (4) (a) The division may not issue an operator's permit unless the applicant satisfies the criteria for issuance of an operator's license specified in s. 125.17 (6) (a). In applying these criteria to an applicant who holds or previously held an operator's permit or an operator's license, the division shall treat as synonymous operators' permits and operators' licenses.

SB268-SA2,28,11 (b) The division may not require applicants for operators' permits to undergo training in addition to that specified in s. 125.17 (6) (a) but may require applicants to purchase at cost materials that deal with relevant subjects not covered in the course under s. 125.17 (6) (a).

SB268-SA2,26am Section 26am. 125.19 (1) of the statutes is amended to read:

SB268-SA2,28,17 125.19 (1) Issuance. The department division shall issue an alcohol beverage warehouse permit which authorizes the permittee to store and warehouse alcohol beverages in warehouse premises covered by the permit, subject to rules adopted by the department division. The permit does not authorize the sale of any alcohol beverages.

SB268-SA2,26an Section 26an. 125.20 of the statutes is created to read:

SB268-SA2,28,19 125.20 Interest restrictions. (1) Definitions. In this section:

SB268-SA2,28,20 (a) “Distribution permit" means a permit issued under s. 125.28 or 125.54.

SB268-SA2,28,22 (b) “Distribution permittee" means a person holding a distribution permit and includes a restricted individual of such a person.

SB268-SA2,28,25 (c) “Production permit" means a permit issued under s. 125.29, 125.295, 125.52, or 125.53, a permit issued under s. 125.30 to a brewer in another state, or a permit issued under s. 125.58 to a manufacturer, rectifier, or winery in another state.

SB268-SA2,29,2 (d) “Production permittee" means a person holding a production permit and includes a restricted individual of such a person.

SB268-SA2,29,3 (e) “Restricted individual" means any of the following:

SB268-SA2,29,5 1. An individual identified on a manager's license or who works or acts in a managerial capacity for a permittee or licensee.

SB268-SA2,29,7 2. An individual serving as an officer, director, member, manager, or agent of a corporation or limited liability company holding a permit or license.

SB268-SA2,29,9 3. An individual holding more than a 10 percent ownership interest in a permittee or licensee.

SB268-SA2,29,11 (f) “Restricted entity" means an entity holding more than a 10 percent ownership interest in a permittee or licensee.

SB268-SA2,29,12 (g) “Restricted investor" means a restricted individual or restricted entity.

SB268-SA2,29,14 (h) “Retail license or permit" means a Class “A," Class “B,” “ Class A," “Class B," or “Class C" license, a Class “B" or “Class B" permit, or a no-sale event venue permit.

SB268-SA2,29,16 (i) “Retail licensee or permittee" means a person holding a retail license or permit and includes a restricted individual of such a person.

SB268-SA2,29,18 (2) Producers. (a) No production permittee may hold any interest in any distribution permittee.

SB268-SA2,29,20 (b) No production permittee may hold any interest in any retail licensee or permittee, except as authorized under s. 125.295.

SB268-SA2,29,22 (3) Distributors. (a) No distribution permittee may hold any interest in any retail licensee or permittee.

SB268-SA2,29,24 (b) No distribution permittee may hold any interest in any production permittee, except as provided in s. 125.28 (2) (d).

SB268-SA2,30,2 (4) Retailers. (a) No retail licensee or permittee may hold any interest in any distribution permittee.

SB268-SA2,30,4 (b) No retail licensee or permittee may hold any interest in any production permittee, except as authorized under s. 125.295.

SB268-SA2,30,7 (5) Construction of section; authorized cross-tier activity. (a) For purposes of this section and s. 125.01, permittees are categorized under the 3-tier system as follows:

SB268-SA2,30,8 1. A production permittee operates within the production tier.

SB268-SA2,30,9 2. A distribution permittee operates within the distribution tier.

SB268-SA2,30,10 3. A retail licensee or permittee operates within the retail tier.

SB268-SA2,30,13 (b) This section does not prohibit a licensee or permittee from engaging in any activity that this chapter explicitly authorizes for the type of license or permit held or that is explicitly authorized under the terms of the license or permit.

SB268-SA2,30,18 (c) To the extent there is a conflict between any provision of subs. (2) to (4) and any provision of ss. 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1), the provisions of ss. 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1) are controlling.

SB268-SA2,30,23 (d) If a license or permit may not be issued to a person under s. 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), or 125.69 (1), the person may not acquire an interest prohibited under s. 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), or 125.69 (1) after the license or permit has been issued.

SB268-SA2,31,3 (6) Permissible interests. (a) Notwithstanding subs. (2) to (4), a licensee or permittee may be owned in part by, or grant an ownership interest to, a restricted investor in a different tier if all of the following are satisfied:

SB268-SA2,31,6 1. No single restricted investor holds more than a 10 percent ownership interest in the licensee or permittee, including any passive or disregarded entity connected to the restricted investor.

SB268-SA2,31,8 2. No restricted investor serves as an officer, director, manager, operator, or agent of the licensee or permittee.

SB268-SA2,31,11 3. No restricted investor is involved in the day-to-day operations of the licensee or permittee or exerts any control over such operations beyond the person's ability to vote as an owner.

SB268-SA2,31,13 4. The aggregate amount of ownership held by all restricted investors in the licensee or permittee does not exceed 49 percent.

SB268-SA2,31,14 5. The licensee or permittee discloses all restricted investors to the division.

SB268-SA2,31,21 6. Each restricted investor executes an affidavit, on a form prescribed by the division, swearing to a complete lack of involvement in the day-to-day operations of, and lack of control over, the licensee or permittee beyond the restricted investor's ability to vote as an owner. If the restricted investor is a restricted entity, the affidavit shall be executed on behalf of the restricted entity by an individual who is an officer or director of the restricted entity or who otherwise has management authority over the restricted entity.

SB268-SA2,31,24 (b) A licensee or permittee, or a restricted individual of a licensee or permittee, may enter into a landlord­tenant relationship with another licensee or permittee operating in a different tier if all of the following are satisfied:

SB268-SA2,32,2 1. The lease or rental agreement explicitly states that the landlord has no control over or day-to-day involvement in the business of the tenant.

SB268-SA2,32,3 2. No control or involvement in the business of the tenant by the landlord exists.

SB268-SA2,32,6 3. The landlord and tenant maintain compliance with ss. 125.33 and 125.69, as applicable and subject to s. 125.33 (2) (hr), and this requirement is set forth in the lease or rental agreement.

SB268-SA2,32,8 4. The lease or rental agreement is in writing and disclosed to the division for review.

SB268-SA2,32,10 (c) Notwithstanding subs. (2) to (4), a spouse may have an interest in the license or permit of the other spouse if all of the following are satisfied:

SB268-SA2,32,12 1. The marriage is governed by a valid marital property agreement or prenuptial agreement.

SB268-SA2,32,14 2. The marital property agreement or prenuptial agreement was disclosed on any license or permit application.

SB268-SA2,32,16 3. A copy of the marital property agreement or prenuptial agreement is provided to the municipal clerk or division prior to issuance of the license or permit.

SB268-SA2,32,19 4. Both spouses execute an affidavit, on a form prescribed by the division, swearing to a complete lack of involvement in the day-to-day operations of, and lack of control over, each respective business.

SB268-SA2,32,21 (d) For purposes of subs. (2) to (4), employment in a nonmanagerial capacity for a licensee or permittee is not an interest in the licensee or permittee.

SB268-SA2,26ao Section 26ao. 125.20 (5) (c) and (d) of the statutes, as created by 2023 Wisconsin Act .... (this act), are amended to read:

SB268-SA2,33,3 125.20 (5) (c) To the extent there is a conflict between any provision of subs. (2) to (4) and any provision of ss. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1), the provisions of ss. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1) are controlling.

SB268-SA2,33,9 (d) If a license or permit may not be issued to a person under s. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), or 125.69 (1), the person may not acquire an interest prohibited under s. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), or 125.69 (1) after the license or permit has been issued.

SB268-SA2,26ap Section 26ap. 125.21 of the statutes is created to read:

SB268-SA2,33,11 125.21 Production agreements. (1) Definitions. In this section:

SB268-SA2,33,14 (a) “Alternating proprietorship" means an arrangement in which a host producer provides use of space and equipment, and may additionally provide personnel, to a guest producer for the production of alcohol beverages.

SB268-SA2,33,17 (b) “Bottling” means placing alcohol beverages into sealed finished packages, including cans, bottles, boxes, bags, kegs, barrels, or any other packaging of finished products. When “bottle” is used as a verb, it has the same meaning as “bottling.”

SB268-SA2,33,20 (c) “Contract producer" means a producer who directly manufactures, bottles, or labels alcohol beverages as an agent of a recipe producer or out-of-state recipe supplier.

SB268-SA2,33,24 (d) “Contract production" means a contract, agreement, or business arrangement described in sub. (3) (b) whereby a recipe producer or out-of-state recipe supplier provides consideration to a contract producer for the production, bottling, or labeling of alcohol beverages.

SB268-SA2,34,4 (e) “Guest producer" means a producer who enters into a contract, agreement, or business arrangement with a host producer whereby the producer has use of the host producer's premises and equipment, and may have use of the host producer's personnel, for the production of the guest producer's alcohol beverages.

SB268-SA2,34,8 (f) “Host producer" means a producer who enters into a contract, agreement, or business arrangement with a guest producer whereby the guest producer has use of the producer's premises and equipment, and may have use of the producer's personnel, for the production of the guest producer's alcohol beverages.

SB268-SA2,34,11 (g) “Licensing agreement" means an agreement between a licensor and a producer for the production of alcohol beverages containing the name, symbol, or mark of the licensor.

SB268-SA2,34,13 (h) “Out-of-state recipe supplier” means a person to whom all of the following applies:

SB268-SA2,34,15 1. The person is located in another state and produces alcohol beverages in that state.

SB268-SA2,34,17 2. The person does not hold a permit under this chapter, other than a permit issued under s. 125.30, 125.535, or 125.58.

SB268-SA2,34,20 3. The person purchases alcohol beverages from a producer that are manufactured consistently with a recipe provided by the person or are bottled or labeled for the person.

SB268-SA2,34,24 (i) “Producer" means a brewer holding a permit under s. 125.29, brewpub holding a permit under s. 125.295, winery holding a permit under s. 125.53, manufacturer holding a permit under s. 125.52, or rectifier holding a permit under s. 125.52.

SB268-SA2,35,3 (j) “Recipe producer" means a producer who purchases alcohol beverages from another producer that are manufactured consistently with a recipe provided by the recipe producer or are bottled or labeled for the recipe producer.

SB268-SA2,35,9 (2) Production arrangements authorized; agreements between same producer type. (a) Production arrangements under subs. (3) to (5) are authorized as provided in this section. A permittee that enters into such a production arrangement does not act as an agent for or in the employ of another under s. 125.52 (3) or 125.53 (2), and such a production arrangement is not a prohibited interest under s. 125.20.

SB268-SA2,35,12 (b) Except as provided in sub. (3) (b) 2. and 3., agreements authorized under this section may be entered into only by producers who hold permits issued under the same section of this chapter.

SB268-SA2,35,14 (3) Contract production. (a) An agreement for contract production shall comply with the requirements of this subsection.

SB268-SA2,35,16 (b) An agreement for contract production may be entered into between any of the following:

SB268-SA2,35,17 1. Two producers possessing the same type of permit.