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.