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SB268-SA2,26aj 9Section 26aj. 125.17 (6) (a) (intro.) of the statutes is amended to read:
SB268-SA2,27,1810 125.17 (6) (a) (intro.) Except as provided in par. (b), no municipal governing
11body or designated municipal official may issue an operator's license unless the
12applicant has successfully completed a responsible beverage server training course
13at any location that is offered by a technical college district and that conforms to
14curriculum guidelines specified by the technical college system board or a
15comparable training course, which may include computer-based training and
16testing, that is approved by the department division or the department of safety and
17professional services, or unless the applicant fulfills one of the following
18requirements:
SB268-SA2,26ak 19Section 26ak. 125.175 of the statutes is created to read:
SB268-SA2,27,24 20125.175 Issuance of operators' permits. (1) Subject to sub. (4), the division
21shall issue an operator's permit to any applicant who is qualified under s. 125.04 (5).
22Operators' permits may not be required other than for the purpose of complying with
23ss. 125.32 (2) and 125.68 (2) or s. 125.06 (3g). Operators' permits may be issued only
24upon written application.
SB268-SA2,27,25 25(2) Operators' permits are valid in all municipalities in this state.
SB268-SA2,28,2
1(3) The division shall establish a fee for issuance or renewal of an operator's
2permit and shall determine whether the permit shall be valid for one or 2 years.
SB268-SA2,28,7 3(4) (a) The division may not issue an operator's permit unless the applicant
4satisfies the criteria for issuance of an operator's license specified in s. 125.17 (6) (a).
5In applying these criteria to an applicant who holds or previously held an operator's
6permit or an operator's license, the division shall treat as synonymous operators'
7permits and operators' licenses.
SB268-SA2,28,118 (b) The division may not require applicants for operators' permits to undergo
9training in addition to that specified in s. 125.17 (6) (a) but may require applicants
10to purchase at cost materials that deal with relevant subjects not covered in the
11course under s. 125.17 (6) (a).
SB268-SA2,26am 12Section 26am. 125.19 (1) of the statutes is amended to read:
SB268-SA2,28,1713 125.19 (1) Issuance. The department division shall issue an alcohol beverage
14warehouse permit which authorizes the permittee to store and warehouse alcohol
15beverages in warehouse premises covered by the permit, subject to rules adopted by
16the department division. The permit does not authorize the sale of any alcohol
17beverages.
SB268-SA2,26an 18Section 26an. 125.20 of the statutes is created to read:
SB268-SA2,28,19 19125.20 Interest restrictions. (1) Definitions. In this section:
SB268-SA2,28,2020 (a) “Distribution permit" means a permit issued under s. 125.28 or 125.54.
SB268-SA2,28,2221 (b) “Distribution permittee" means a person holding a distribution permit and
22includes a restricted individual of such a person.
SB268-SA2,28,2523 (c) “Production permit" means a permit issued under s. 125.29, 125.295, 125.52,
24or 125.53, a permit issued under s. 125.30 to a brewer in another state, or a permit
25issued under s. 125.58 to a manufacturer, rectifier, or winery in another state.
SB268-SA2,29,2
1(d) “Production permittee" means a person holding a production permit and
2includes a restricted individual of such a person.
SB268-SA2,29,33 (e) “Restricted individual" means any of the following:
SB268-SA2,29,54 1. An individual identified on a manager's license or who works or acts in a
5managerial capacity for a permittee or licensee.
SB268-SA2,29,76 2. An individual serving as an officer, director, member, manager, or agent of
7a corporation or limited liability company holding a permit or license.
SB268-SA2,29,98 3. An individual holding more than a 10 percent ownership interest in a
9permittee or licensee.
SB268-SA2,29,1110 (f) “Restricted entity" means an entity holding more than a 10 percent
11ownership interest in a permittee or licensee.
SB268-SA2,29,1212 (g) “Restricted investor" means a restricted individual or restricted entity.
SB268-SA2,29,1413 (h) “Retail license or permit" means a Class “A," Class “B,” “ Class A," “Class B,"
14or “Class C" license, a Class “B" or “Class B" permit, or a no-sale event venue permit.
SB268-SA2,29,1615 (i) “Retail licensee or permittee" means a person holding a retail license or
16permit and includes a restricted individual of such a person.
SB268-SA2,29,18 17(2) Producers. (a) No production permittee may hold any interest in any
18distribution permittee.
SB268-SA2,29,2019 (b) No production permittee may hold any interest in any retail licensee or
20permittee, except as authorized under s. 125.295.
SB268-SA2,29,22 21(3) Distributors. (a) No distribution permittee may hold any interest in any
22retail licensee or permittee.
SB268-SA2,29,2423 (b) No distribution permittee may hold any interest in any production
24permittee, except as provided in s. 125.28 (2) (d).
SB268-SA2,30,2
1(4) Retailers. (a) No retail licensee or permittee may hold any interest in any
2distribution permittee.
SB268-SA2,30,43 (b) No retail licensee or permittee may hold any interest in any production
4permittee, except as authorized under s. 125.295.
SB268-SA2,30,7 5(5) Construction of section; authorized cross-tier activity. (a) For purposes
6of this section and s. 125.01, permittees are categorized under the 3-tier system as
7follows:
SB268-SA2,30,88 1. A production permittee operates within the production tier.
SB268-SA2,30,99 2. A distribution permittee operates within the distribution tier.
SB268-SA2,30,1010 3. A retail licensee or permittee operates within the retail tier.
SB268-SA2,30,1311 (b) This section does not prohibit a licensee or permittee from engaging in any
12activity that this chapter explicitly authorizes for the type of license or permit held
13or that is explicitly authorized under the terms of the license or permit.
SB268-SA2,30,1814 (c) To the extent there is a conflict between any provision of subs. (2) to (4) and
15any provision of ss. 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2)
16(a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1), the provisions of ss. 125.25 (2) (b),
17125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3)
18(c), and 125.69 (1) are controlling.
SB268-SA2,30,2319 (d) If a license or permit may not be issued to a person under s. 125.25 (2) (b),
20125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3)
21(c), or 125.69 (1), the person may not acquire an interest prohibited under s. 125.25
22(2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30
23(3) (c), or 125.69 (1) after the license or permit has been issued.
SB268-SA2,31,3
1(6) Permissible interests. (a) Notwithstanding subs. (2) to (4), a licensee or
2permittee may be owned in part by, or grant an ownership interest to, a restricted
3investor in a different tier if all of the following are satisfied:
SB268-SA2,31,64 1. No single restricted investor holds more than a 10 percent ownership
5interest in the licensee or permittee, including any passive or disregarded entity
6connected to the restricted investor.
SB268-SA2,31,87 2. No restricted investor serves as an officer, director, manager, operator, or
8agent of the licensee or permittee.
SB268-SA2,31,119 3. No restricted investor is involved in the day-to-day operations of the
10licensee or permittee or exerts any control over such operations beyond the person's
11ability to vote as an owner.
SB268-SA2,31,1312 4. The aggregate amount of ownership held by all restricted investors in the
13licensee or permittee does not exceed 49 percent.
SB268-SA2,31,1414 5. The licensee or permittee discloses all restricted investors to the division.
SB268-SA2,31,2115 6. Each restricted investor executes an affidavit, on a form prescribed by the
16division, swearing to a complete lack of involvement in the day-to-day operations
17of, and lack of control over, the licensee or permittee beyond the restricted investor's
18ability to vote as an owner. If the restricted investor is a restricted entity, the
19affidavit shall be executed on behalf of the restricted entity by an individual who is
20an officer or director of the restricted entity or who otherwise has management
21authority over the restricted entity.
SB268-SA2,31,2422 (b) A licensee or permittee, or a restricted individual of a licensee or permittee,
23may enter into a landlord­tenant relationship with another licensee or permittee
24operating in a different tier if all of the following are satisfied:
SB268-SA2,32,2
11. The lease or rental agreement explicitly states that the landlord has no
2control over or day-to-day involvement in the business of the tenant.
SB268-SA2,32,33 2. No control or involvement in the business of the tenant by the landlord exists.
SB268-SA2,32,64 3. The landlord and tenant maintain compliance with ss. 125.33 and 125.69,
5as applicable and subject to s. 125.33 (2) (hr), and this requirement is set forth in the
6lease or rental agreement.
SB268-SA2,32,87 4. The lease or rental agreement is in writing and disclosed to the division for
8review.
SB268-SA2,32,109 (c) Notwithstanding subs. (2) to (4), a spouse may have an interest in the license
10or permit of the other spouse if all of the following are satisfied:
SB268-SA2,32,1211 1. The marriage is governed by a valid marital property agreement or
12prenuptial agreement.
SB268-SA2,32,1413 2. The marital property agreement or prenuptial agreement was disclosed on
14any license or permit application.
SB268-SA2,32,1615 3. A copy of the marital property agreement or prenuptial agreement is
16provided to the municipal clerk or division prior to issuance of the license or permit.
SB268-SA2,32,1917 4. Both spouses execute an affidavit, on a form prescribed by the division,
18swearing to a complete lack of involvement in the day-to-day operations of, and lack
19of control over, each respective business.
SB268-SA2,32,2120 (d) For purposes of subs. (2) to (4), employment in a nonmanagerial capacity
21for a licensee or permittee is not an interest in the licensee or permittee.
SB268-SA2,26ao 22Section 26ao. 125.20 (5) (c) and (d) of the statutes, as created by 2023
23Wisconsin Act .... (this act), are amended to read:
SB268-SA2,33,324 125.20 (5) (c) To the extent there is a conflict between any provision of subs. (2)
25to (4) and any provision of ss. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7),

1125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1), the
2provisions of ss. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b),
3125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1) are controlling.
SB268-SA2,33,94 (d) If a license or permit may not be issued to a person under s. 125.24 (3),
5125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a)
66., 125.30 (3) (c), or 125.69 (1), the person may not acquire an interest prohibited
7under s. 125.24 (3), 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), or 125.69 (1) after the license or permit has been
9issued.
SB268-SA2,26ap 10Section 26ap. 125.21 of the statutes is created to read:
SB268-SA2,33,11 11125.21 Production agreements. (1) Definitions. In this section:
SB268-SA2,33,1412 (a) “Alternating proprietorship" means an arrangement in which a host
13producer provides use of space and equipment, and may additionally provide
14personnel, to a guest producer for the production of alcohol beverages.
SB268-SA2,33,1715 (b) “Bottling” means placing alcohol beverages into sealed finished packages,
16including cans, bottles, boxes, bags, kegs, barrels, or any other packaging of finished
17products. When “bottle” is used as a verb, it has the same meaning as “bottling.”
SB268-SA2,33,2018 (c) “Contract producer" means a producer who directly manufactures, bottles,
19or labels alcohol beverages as an agent of a recipe producer or out-of-state recipe
20supplier.
SB268-SA2,33,2421 (d) “Contract production" means a contract, agreement, or business
22arrangement described in sub. (3) (b) whereby a recipe producer or out-of-state
23recipe supplier provides consideration to a contract producer for the production,
24bottling, or labeling of alcohol beverages.
SB268-SA2,34,4
1(e) “Guest producer" means a producer who enters into a contract, agreement,
2or business arrangement with a host producer whereby the producer has use of the
3host producer's premises and equipment, and may have use of the host producer's
4personnel, for the production of the guest producer's alcohol beverages.
SB268-SA2,34,85 (f) “Host producer" means a producer who enters into a contract, agreement,
6or business arrangement with a guest producer whereby the guest producer has use
7of the producer's premises and equipment, and may have use of the producer's
8personnel, for the production of the guest producer's alcohol beverages.
SB268-SA2,34,119 (g) “Licensing agreement" means an agreement between a licensor and a
10producer for the production of alcohol beverages containing the name, symbol, or
11mark of the licensor.
SB268-SA2,34,1312 (h) “Out-of-state recipe supplier” means a person to whom all of the following
13applies:
SB268-SA2,34,1514 1. The person is located in another state and produces alcohol beverages in that
15state.
SB268-SA2,34,1716 2. The person does not hold a permit under this chapter, other than a permit
17issued under s. 125.30, 125.535, or 125.58.
SB268-SA2,34,2018 3. The person purchases alcohol beverages from a producer that are
19manufactured consistently with a recipe provided by the person or are bottled or
20labeled for the person.
SB268-SA2,34,2421 (i) “Producer" means a brewer holding a permit under s. 125.29, brewpub
22holding a permit under s. 125.295, winery holding a permit under s. 125.53,
23manufacturer holding a permit under s. 125.52, or rectifier holding a permit under
24s. 125.52.
SB268-SA2,35,3
1(j) “Recipe producer" means a producer who purchases alcohol beverages from
2another producer that are manufactured consistently with a recipe provided by the
3recipe producer or are bottled or labeled for the recipe producer.
SB268-SA2,35,9 4(2) Production arrangements authorized; agreements between same
5producer type.
(a) Production arrangements under subs. (3) to (5) are authorized
6as provided in this section. A permittee that enters into such a production
7arrangement does not act as an agent for or in the employ of another under s. 125.52
8(3) or 125.53 (2), and such a production arrangement is not a prohibited interest
9under s. 125.20.
SB268-SA2,35,1210 (b) Except as provided in sub. (3) (b) 2. and 3., agreements authorized under
11this section may be entered into only by producers who hold permits issued under the
12same section of this chapter.
SB268-SA2,35,14 13(3) Contract production. (a) An agreement for contract production shall
14comply with the requirements of this subsection.
SB268-SA2,35,1615 (b) An agreement for contract production may be entered into between any of
16the following:
SB268-SA2,35,1717 1. Two producers possessing the same type of permit.
SB268-SA2,35,1918 2. A permittee under s. 125.29, as the contract producer, and a permittee under
19s. 125.295, as the recipe producer.
SB268-SA2,35,2020 3. A producer and an out-of-state recipe supplier.
SB268-SA2,35,2321 (c) All contract production activities shall occur pursuant to a written
22agreement between the contract producer and the recipe producer or out-of-state
23recipe supplier.
SB268-SA2,36,224 (d) 1. Except as provided in subd. 2., alcohol beverages produced under an
25agreement for contract production between a contract producer and a recipe

1producer shall count toward the production volume of the recipe producer and shall
2be considered, for this purpose, as produced on the recipe producer's premises.
SB268-SA2,36,73 2. Alcohol beverages produced under an agreement for contract production
4between a contract producer and a recipe producer may not be considered in
5determining production volume for purposes of ss. 125.29 (7), 125.52 (4), and 125.53
6(3), but shall be considered as produced by the recipe producer for other purposes
7under ss. 125.29 (7), 125.52 (4), and 125.53 (3).
SB268-SA2,36,148 (e) The recipe producer shall be considered the producer for purposes of filing
9reports under s. 139.11 (2) and taxation under ss. 139.02, 139.03, 139.05 (2), and
10139.06 (1) and (2), as applicable, and shall include alcohol beverages manufactured
11under a contract production agreement in the report required under s. 139.11 (2).
12For alcohol beverages produced under an agreement for contract production between
13a contract producer and a recipe producer, the contract producer shall exclude the
14alcohol beverages from reports required under s. 139.11 (2).
SB268-SA2,36,16 15(4) Alternating proprietorship. (a) An alternating proprietorship shall
16comply with the requirements of this subsection.
SB268-SA2,36,1817 (b) All alternating proprietorships shall occur pursuant to a written agreement
18between the host producer and guest producer.
SB268-SA2,36,2319 (c) The agreement under par. (b) shall provide that the guest producer retains
20the right to control the production of the alcohol beverages. If the agreement
21provides that the host producer and host producer's personnel are agents of the guest
22producer or acting under the direction of the guest producer, the agreement shall
23specify the terms and compensation for the use of the host producer's personnel.
SB268-SA2,37,424 (d) The guest producer shall be considered the producer for purposes of filing
25reports under s. 139.11 (2) and taxation under ss. 139.02, 139.03, 139.05 (2), and

1139.06 (1) and (2), as applicable, and shall include alcohol beverages manufactured
2under an alternating proprietorship in the report required under s. 139.11 (2). The
3host producer shall exclude alcohol beverages manufactured in an alternating
4proprietorship from reports required under s. 139.11 (2).
SB268-SA2,37,75 (e) Alcohol beverages produced under an alternating proprietorship shall count
6toward the production volume of the guest producer and shall be considered, for this
7purpose, as produced on the guest producer's premises.
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