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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.
SB268-SA2,40,1210 (c) An applicant for a permit under this section shall pay an annual fee of $100
11for each permit. The permit may be issued for a period of one year and may be
12renewed annually.
SB268-SA2,40,1413 (d) A permit under this section may be issued only to a person who holds a valid
14certificate issued under s. 73.03 (50).
SB268-SA2,40,16 15(2) Permit application. (a) An applicant for a permit under this section shall
16provide all of the following information as part of the permit application:
SB268-SA2,40,1817 1. All locations from which alcohol beverages are to be shipped under the
18permit.
SB268-SA2,40,2219 2. Any other information required by the division. The division shall require
20the applicant to submit information, as determined to be appropriate by the division,
21that is similar to the information required of an applicant for a permit under s.
22125.58.
SB268-SA2,41,623 (b) Notwithstanding s. 125.04 (5) (a), natural persons obtaining fulfillment
24house permits are not required to be residents of this state. Notwithstanding s.
25125.04 (5) (a) 5., a person is not required to complete a responsible beverage server

1training course to be eligible for a permit under this section. Corporations and
2limited liability companies obtaining fulfillment house permits are subject to s.
3125.04 (6) and any other person, including any natural person or cooperative,
4obtaining a fulfillment house permit shall appoint an agent, and be subject to all
5provisions of s. 125.04 (6), in the same manner applicable to corporations and limited
6liability companies.
SB268-SA2,41,9 7(3) Package labeling. A person holding a permit under this section shall
8ensure all containers of wine shipped directly to an individual in this state are
9labeled with all of the following information:
SB268-SA2,41,1210 (a) The following words, appearing in capital letters and in a conspicuous
11location: “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
12REQUIRED FOR DELIVERY."
SB268-SA2,41,1413 (b) The name, address, and permit number of the fulfillment house permittee
14and the name, address, and permit number of the direct wine shipper.
SB268-SA2,41,16 15(4) Shipment. (a) A fulfillment house permittee may not ship into this state
16wine from any person not holding a direct wine shipper's permit under s. 125.535.
SB268-SA2,41,2017 (b) A fulfillment house permittee may not ship wine into this state through a
18common carrier that does not hold a permit under s. 125.22. All containers of wine
19shipped directly to an individual in this state shall be shipped using a common
20carrier holding a permit issued under s. 125.22.
SB268-SA2,41,2321 (c) Prior to shipping wine to an individual in this state, a fulfillment house
22permittee shall verify the validity of the permit of each direct wine shipper and of
23each common carrier associated with the shipment.
SB268-SA2,42,2 24(5) Reports. (a) No later than the 15th day of each month, a fulfillment house
25holding a permit under this section shall submit a verified report to the division, in

1the form and manner prescribed by the division, that includes all of the following
2information for each shipment of alcohol beverages during the preceding month:
SB268-SA2,42,43 1. The name and address of the person that manufactured the alcohol
4beverages.
SB268-SA2,42,65 2. The name and address of the consignor of the shipment, if different from the
6person that manufactured the alcohol beverages.
SB268-SA2,42,77 3. The name and address of the consignee of the shipment.
SB268-SA2,42,88 4. The date of the shipment.
SB268-SA2,42,99 5. The type and quantity of alcohol beverages shipped to the consignee.
SB268-SA2,42,1110 6. The parcel tracking number, waybill number, or other identifying number
11for the shipment.
SB268-SA2,42,1712 (b) The division and the department shall keep confidential the information
13under par. (a) 3. and 6., and this information is not subject to public copying or
14inspection under s. 19.35 (1), but all other information included in a report under par.
15(a) is subject to public copying and inspection under s. 19.35 (1) and may not be
16treated by the division or the department as confidential under any provision of s.
1771.78, 71.83, or 139.11 (4).
SB268-SA2,42,19 18(6) Penalties. (a) Any fulfillment house that fails to obtain a permit under this
19section in violation of sub. (1) is subject to a fine of not more than $10,000.
SB268-SA2,42,2520 (b) Any permittee under this section that ships alcohol beverages other than
21wine obtained from a direct wine shipper holding a permit under s. 125.535 is subject
22to a forfeiture of not more than $2,000. The division shall revoke the permit of any
23permittee that violates this prohibition in more than one month during a calendar
24year. Except as provided in this paragraph, s. 125.12 (5) shall apply with respect to
25the division's revocation of the permit.
SB268-SA2,43,2
1(c) If a fulfillment house fails to submit a report required under sub. (5), the
2fulfillment house is subject to a forfeiture of not more than $2,000.
SB268-SA2,26at 3Section 26at. 125.24 of the statutes is created to read:
SB268-SA2,43,8 4125.24 No-sale event venue permit. (1) Permit issuance. (a) Except as
5otherwise provided in this section, the division may issue to property owners no-sale
6event venue permits that authorize the permittee to rent or lease real property for
7use as an event venue at which fermented malt beverages and wine are consumed
8if all requirements under this section are satisfied.
SB268-SA2,43,129 (b) A no-sale event venue permit may be issued only to a person who holds a
10valid certificate issued under s. 73.03 (50) and is qualified under s. 125.04 (5), except
11that a person is not required to complete a responsible beverage server training
12course to be eligible for a permit under this section.
SB268-SA2,43,1413 (c) A no-sale event venue permit may not be issued unless all of the following
14are satisfied:
SB268-SA2,43,1615 1. The applicant certifies in the permit application how many events were held
16at the venue in the 12-month period immediately preceding the application.
SB268-SA2,43,1817 2. The applicant identifies with specificity in the permit application the
18property that is the event venue covered by the permit.
SB268-SA2,43,2319 (d) Subject to sub. (2) (c) 3., a permit may not be issued under this section for
20premises that are covered by any other license or permit under this chapter, but a
21caterer holding Class “B” and “Class B” licenses may deliver fermented malt
22beverages and wine to the event venue if all requirements under sub. (2) are
23satisfied.
SB268-SA2,43,2524 (e) The division shall establish an annual fee, calculated to cover the division's
25administrative costs under this section, for a permit issued under this section.
SB268-SA2,44,4
1(2) Activities authorized under permit. (a) A no-sale event venue permit
2authorizes the permittee to rent or lease real property for use as an event venue at
3which fermented malt beverages and wine are consumed on no more than 6 days per
4calendar year and no more than one day per month.
SB268-SA2,44,85 (b) 1. A no-sale event venue permittee may not sell or otherwise provide alcohol
6beverages to the renter or lessee of the event venue or to any guest or attendee of an
7event on the event venue, including charging admission for an event on the event
8venue at which any alcohol beverages are served.
SB268-SA2,44,119 2. A no-sale event venue permittee may not allow any person to possess
10distilled spirits on the event venue when the event venue is being used by a renter
11or lessee.
SB268-SA2,44,1312 (c) Subject to pars. (d) and (e), a no-sale event venue permit authorizes the
13permittee to do any of the following:
SB268-SA2,44,1614 1. Allow the renter or lessee of the event venue to bring the renter's or lessee's
15own fermented malt beverages and wine onto the event venue and serve it to guests
16without charge.
SB268-SA2,44,1817 2. Allow the guests of the renter or lessee to bring fermented malt beverages
18and wine onto the event venue to be consumed by the guests without charge.
SB268-SA2,44,2119 3. Allow the renter or lessee to obtain temporary Class “B” and “Class B”
20licenses for an event held on the event venue and sell fermented malt beverages and
21wine under the temporary Class “B” and “Class B” licenses on the event venue.
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