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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.
SB268-SA2,37,10 8(5) Licensing agreements. (a) A producer may enter into a licensing
9agreement or contract with a licensor authorizing the producer-licensee to use the
10licensor's trademark or name if all of the following requirements are satisfied:
SB268-SA2,37,1111 1. The licensing agreement or contract is in writing.
SB268-SA2,37,1312 2. The producer-licensee is entirely responsible for producing the alcohol
13beverages and for all related processing steps and regulatory requirements.
SB268-SA2,37,1614 (b) Alcohol beverages produced under the licensing agreement shall count
15toward the production volume of the producer-licensee and shall be considered, for
16this purpose, as produced on the producer-licensee's premises.
SB268-SA2,26aq 17Section 26aq. 125.22 of the statutes is created to read:
SB268-SA2,37,24 18125.22 Common carrier permit; shipments into state. (1) Permit. (a)
19No common carrier may transport into or deliver within this state any alcohol
20beverages unless the common carrier first obtains a permit from the division under
21this section. This subsection does not apply to the transportation into this state for
22delivery to, or delivery within this state to, a person that holds a license or permit
23issued under this chapter that authorizes the licensee or permittee to receive the
24alcohol beverages.
SB268-SA2,38,3
1(b) A permit under this section authorizes only the transport into or delivery
2within this state of wine on behalf of a person holding a direct wine shipper's permit
3under s. 125.535 or a fulfillment house permit under s. 125.23.
SB268-SA2,38,74 (c) An applicant for a permit under this section shall provide all information
5required by the division. The division shall require the applicant to submit
6information, as determined to be appropriate by the division, that is similar to the
7information required of an applicant for a permit under s. 125.58.
SB268-SA2,38,98 (d) A permit under this section may be issued only to a person who holds a valid
9certificate issued under s. 73.03 (50).
SB268-SA2,38,1010 (e) A permittee under this section shall pay an annual fee of $1,000.
SB268-SA2,38,14 11(2) Reports. (a) No later than the 15th day of each month, a common carrier
12holding a permit under this section shall submit a verified report to the division, in
13the form and manner prescribed by the division, that includes all of the following
14information for each shipment of alcohol beverages during the preceding month:
SB268-SA2,38,1615 1. The name and address of the person that manufactured the alcohol
16beverages.
SB268-SA2,38,1817 2. The name and address of the consignor of the shipment, if different from the
18person that manufactured the alcohol beverages.
SB268-SA2,38,1919 3. The name and address of the consignee of the shipment.
SB268-SA2,38,2020 4. The date of the shipment.
SB268-SA2,38,2221 5. The type and quantity of alcohol beverages shipped to the consignee, as
22reported to the common carrier by the consignor.
SB268-SA2,38,2423 6. The parcel tracking number, waybill number, or other identifying number
24for the shipment.
SB268-SA2,39,6
1(b) The division and the department shall keep confidential the information
2under par. (a) 3. and 6., and this information is not subject to public copying or
3inspection under s. 19.35 (1), but all other information included in a report under par.
4(a) is subject to public copying and inspection under s. 19.35 (1) and may not be
5treated by the division or the department as confidential under any provision of s.
671.78, 71.83, or 139.11 (4).
SB268-SA2,39,127 (c) Nothing in this section alters the requirement that a person shipping alcohol
8beverages into this state obtain all required permits under this chapter prior to
9shipment, including any permit under s. 125.535. Nothing in this section grants a
10manufacturer, rectifier, or shipper of alcohol beverages, including a winery, authority
11to ship alcohol beverages into this state. Nothing in this section alters the
12face-to-face sales requirement in ss. 125.272 and 125.51 (6).
SB268-SA2,39,15 13(3) Penalties. (a) Any common carrier that fails to obtain a permit required
14under sub. (1) prior to commencing delivery of alcohol beverages in this state is
15subject to a fine of not more than $10,000.
SB268-SA2,39,2216 (b) Any common carrier that ships alcohol beverages other than wine obtained
17from a direct wine shipper permittee under s. 125.535 or from a fulfillment house
18permittee under s. 125.23 is subject to a forfeiture of not more than $2,000. The
19division shall revoke the permit of any common carrier that violates this prohibition
20in more than one month during a calendar year. Except as provided in this
21paragraph, s. 125.12 (5) shall apply with respect to the division's revocation of the
22permit.
SB268-SA2,39,2423 (c) If a common carrier fails to submit a report required under sub. (2), the
24common carrier is subject to a forfeiture of not more than $2,000.
SB268-SA2,26ar 25Section 26ar. 125.23 of the statutes is created to read:
SB268-SA2,40,5
1125.23 Fulfillment houses. (1) Permit. (a) Before making any shipment to,
2or causing any shipment to be made to, any individual in this state, a person
3operating a fulfillment house shall obtain from the division a fulfillment house
4permit for each location that is involved in the process of shipping wine to residents
5of this state.
SB268-SA2,40,96 (b) A person holding a permit under this section may provide services only for
7the warehousing, packaging, order fulfillment, and shipment of alcohol beverages
8produced by and belonging to a person holding a direct wine shipper's permit under
9s. 125.535.
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