SB268-SA2,36,16 (4) Alternating proprietorship. (a) An alternating proprietorship shall comply with the requirements of this subsection.

SB268-SA2,36,18 (b) All alternating proprietorships shall occur pursuant to a written agreement between the host producer and guest producer.

SB268-SA2,36,23 (c) The agreement under par. (b) shall provide that the guest producer retains the right to control the production of the alcohol beverages. If the agreement provides that the host producer and host producer's personnel are agents of the guest producer or acting under the direction of the guest producer, the agreement shall specify the terms and compensation for the use of the host producer's personnel.

SB268-SA2,37,4 (d) The guest producer shall be considered the producer for purposes of filing reports under s. 139.11 (2) and taxation under ss. 139.02, 139.03, 139.05 (2), and 139.06 (1) and (2), as applicable, and shall include alcohol beverages manufactured under an alternating proprietorship in the report required under s. 139.11 (2). The host producer shall exclude alcohol beverages manufactured in an alternating proprietorship from reports required under s. 139.11 (2).

SB268-SA2,37,7 (e) Alcohol beverages produced under an alternating proprietorship shall count toward the production volume of the guest producer and shall be considered, for this purpose, as produced on the guest producer's premises.

SB268-SA2,37,10 (5) Licensing agreements. (a) A producer may enter into a licensing agreement or contract with a licensor authorizing the producer-licensee to use the licensor's trademark or name if all of the following requirements are satisfied:

SB268-SA2,37,11 1. The licensing agreement or contract is in writing.

SB268-SA2,37,13 2. The producer-licensee is entirely responsible for producing the alcohol beverages and for all related processing steps and regulatory requirements.

SB268-SA2,37,16 (b) Alcohol beverages produced under the licensing agreement shall count toward the production volume of the producer-licensee and shall be considered, for this purpose, as produced on the producer-licensee's premises.

SB268-SA2,26aq Section 26aq. 125.22 of the statutes is created to read:

SB268-SA2,37,24 125.22 Common carrier permit; shipments into state. (1) Permit. (a) No common carrier may transport into or deliver within this state any alcohol beverages unless the common carrier first obtains a permit from the division under this section. This subsection does not apply to the transportation into this state for delivery to, or delivery within this state to, a person that holds a license or permit issued under this chapter that authorizes the licensee or permittee to receive the alcohol beverages.

SB268-SA2,38,3 (b) A permit under this section authorizes only the transport into or delivery within this state of wine on behalf of a person holding a direct wine shipper's permit under s. 125.535 or a fulfillment house permit under s. 125.23.

SB268-SA2,38,7 (c) An applicant for a permit under this section shall provide all information required by the division. The division shall require the applicant to submit information, as determined to be appropriate by the division, that is similar to the information required of an applicant for a permit under s. 125.58.

SB268-SA2,38,9 (d) A permit under this section may be issued only to a person who holds a valid certificate issued under s. 73.03 (50).

SB268-SA2,38,10 (e) A permittee under this section shall pay an annual fee of $1,000.

SB268-SA2,38,14 (2) Reports. (a) No later than the 15th day of each month, a common carrier holding a permit under this section shall submit a verified report to the division, in the form and manner prescribed by the division, that includes all of the following information for each shipment of alcohol beverages during the preceding month:

SB268-SA2,38,16 1. The name and address of the person that manufactured the alcohol beverages.

SB268-SA2,38,18 2. The name and address of the consignor of the shipment, if different from the person that manufactured the alcohol beverages.

SB268-SA2,38,19 3. The name and address of the consignee of the shipment.

SB268-SA2,38,20 4. The date of the shipment.

SB268-SA2,38,22 5. The type and quantity of alcohol beverages shipped to the consignee, as reported to the common carrier by the consignor.

SB268-SA2,38,24 6. The parcel tracking number, waybill number, or other identifying number for the shipment.

SB268-SA2,39,6 (b) The division and the department shall keep confidential the information under par. (a) 3. and 6., and this information is not subject to public copying or inspection under s. 19.35 (1), but all other information included in a report under par. (a) is subject to public copying and inspection under s. 19.35 (1) and may not be treated by the division or the department as confidential under any provision of s. 71.78, 71.83, or 139.11 (4).

SB268-SA2,39,12 (c) Nothing in this section alters the requirement that a person shipping alcohol beverages into this state obtain all required permits under this chapter prior to shipment, including any permit under s. 125.535. Nothing in this section grants a manufacturer, rectifier, or shipper of alcohol beverages, including a winery, authority to ship alcohol beverages into this state. Nothing in this section alters the face-to-face sales requirement in ss. 125.272 and 125.51 (6).

SB268-SA2,39,15 (3) Penalties. (a) Any common carrier that fails to obtain a permit required under sub. (1) prior to commencing delivery of alcohol beverages in this state is subject to a fine of not more than $10,000.

SB268-SA2,39,22 (b) Any common carrier that ships alcohol beverages other than wine obtained from a direct wine shipper permittee under s. 125.535 or from a fulfillment house permittee under s. 125.23 is subject to a forfeiture of not more than $2,000. The division shall revoke the permit of any common carrier that violates this prohibition in more than one month during a calendar year. Except as provided in this paragraph, s. 125.12 (5) shall apply with respect to the division's revocation of the permit.

SB268-SA2,39,24 (c) If a common carrier fails to submit a report required under sub. (2), the common carrier is subject to a forfeiture of not more than $2,000.

SB268-SA2,26ar Section 26ar. 125.23 of the statutes is created to read:

SB268-SA2,40,5 125.23 Fulfillment houses. (1) Permit. (a) Before making any shipment to, or causing any shipment to be made to, any individual in this state, a person operating a fulfillment house shall obtain from the division a fulfillment house permit for each location that is involved in the process of shipping wine to residents of this state.