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LRB-0515/1
ARG:amn
2019 - 2020 LEGISLATURE
February 11, 2020 - Introduced by Representatives Shankland, Tauchen,
Considine, Dittrich, Sargent and Wichgers, cosponsored by Senators Smith
and Bewley. Referred to Committee on State Affairs.
AB886,1,3 1An Act to renumber and amend 125.53 (1); and to create 125.29 (3) (em),
2125.29 (3) (fm), 125.29 (3) (im) and 125.53 (1) (c) of the statutes; relating to:
3authorized activities of brewers and wineries.
Analysis by the Legislative Reference Bureau
This bill allows a person that operates a brewery and a winery to sell, and
provide free taste samples of, the winery's cider at the brewery and the brewer's other
retail outlet.
Under current law, alcohol beverages are generally distributed to consumers
under a three-tier distribution system: the producer sells to a wholesaler; the
wholesaler sells to a retailer; and the retailer sells to a consumer. With specific
exceptions, no person may sell outside the three-tier system and no person may sell
alcohol beverages to a consumer unless the seller possesses a license or permit
authorizing the sale.
Also under current law, the Department of Revenue issues permits to producers
of alcohol beverages. A brewer's permit authorizes a brewer to, among other
activities, manufacture fermented malt beverages (beer) and sell at retail, without
a retail license, the brewer's own beer and certain other Wisconsin-made beer at the
brewery premises and at one off-site retail outlet of the brewer. The brewer may also
provide free taste samples of beer at these locations. A winery permit authorizes the
winery to, among other activities, manufacture wine, including cider. A winery may
also hold one retail license and sell its wine at this licensed location without the wine
first passing through a wholesaler.

Under this bill, if a person holds both a winery permit and a brewer's permit,
the permittee may sell its own cider at retail, without a retail license, at the brewery
premises and at the brewer's off-site retail outlet. The permittee may also provide
free taste samples of cider at these locations. For purposes of the bill, “cider" means
fermented apple or pear juice with an alcohol content not exceeding 7 percent alcohol
by volume. The permittee may provide the cider directly from the winery to the
brewery premises or brewer's off-site retail outlet without the cider first passing
through a wholesaler.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB886,1 1Section 1. 125.29 (3) (em) of the statutes is created to read:
AB886,2,62 125.29 (3) (em) Notwithstanding ss. 125.04 (9) and 125.09 (1), if the brewer also
3holds a winery permit under s. 125.53, the retail sale of cider, as defined in s. 125.51
4(2) (e) 1., that has been manufactured on this winery premises for on-premise
5consumption at the brewery premises or at an off-site retail outlet established by the
6brewer.
AB886,2 7Section 2. 125.29 (3) (fm) of the statutes is created to read:
AB886,2,128 125.29 (3) (fm) Notwithstanding ss. 125.04 (9) and 125.09 (1), if the brewer also
9holds a winery permit under s. 125.53, the retail sale at the brewery premises or at
10an off-site retail outlet established by the brewer, in original unopened packages or
11containers for off-premise consumption, of cider, as defined in s. 125.51 (2) (e) 1., that
12has been manufactured on this winery premises.
AB886,3 13Section 3. 125.29 (3) (im) of the statutes is created to read:
AB886,2,1714 125.29 (3) (im) If the brewer also holds a winery permit under s. 125.53, the
15provision of free taste samples, at the brewery premises or at an off-site retail outlet
16established by the brewer, of cider, as defined in s. 125.51 (2) (e) 1., that has been
17manufactured on this winery premises.
AB886,4
1Section 4. 125.53 (1) of the statutes is renumbered 125.53 (1) (a) and amended
2to read:
AB886,3,93 125.53 (1) (a) The department shall issue only to a manufacturing winery in
4this state that holds a valid certificate issued under s. 73.03 (50) a winery permit
5authorizing the manufacture and bottling of wine on the premises covered by the
6permit for sale to wholesalers holding a permit under s. 125.54. A winery permit also
7authorizes the permittee to, on the winery premises and without obtaining a
8rectifier's permit, possess intoxicating liquor and mix or blend intoxicating liquor to
9produce wine sold to wholesalers holding a permit under s. 125.54.
AB886,3,18 10(b) A winery holding a permit under this section may offer on the premises taste
11samples of wine manufactured on the premises to persons who have attained the
12legal drinking age. A permittee under this section may also have either one “Class
13A" license or one “Class B" license, but not both. The “Class A" license or “Class B"
14license may either be issued for the winery premises or for real estate owned or leased
15by the winery. If a “Class A" or “Class B" liquor license has also been issued to the
16winery, the winery may provide wine manufactured, mixed, or blended on the winery
17premises directly to the “Class A" or “Class B" premises and may offer the taste
18samples on the “Class A" or “Class B" premises.
AB886,3,22 19(d) A winery holding a permit under this section may also make retail sales and
20provide taste samples on county or district fair fairgrounds as provided in s. 125.51
21(10), but this wine sold at retail or provided as taste samples shall be purchased from
22a wholesaler holding a permit under s. 125.54.
AB886,5 23Section 5. 125.53 (1) (c) of the statutes is created to read:
AB886,4,324 125.53 (1) (c) If a winery holding a permit under this section also holds a
25brewer's permit under s. 125.29, the winery may provide cider, as defined in s. 125.51

1(2) (e) 1., that has been manufactured on this winery premises directly to the brewery
2premises or brewer's off-site retail outlet and engage in any activity authorized
3under s. 125.29 (3) (em), (fm), or (im).
AB886,4,44 (End)
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