Current law regulating alcohol beverages is generally found in chs. 125 and 139,
stats. The former sets forth the law regarding the authority and restrictions applicable
to the manufacture, wholesale (distribution), and retail sales of alcohol beverages. The
latter sets forth the law regarding the occupational (excise) taxation of alcohol beverages.

There are 3 types of alcohol beverages permits that the Department of Revenue
(DOR) may issue to a person, corporation, or limited liability company located outside of
the state. These permits are: (1) the out-of-state fermented malt beverages (beer)
shippers' permit; (2) the out-of-state intoxicating liquor (distilled spirits and wine,
“liquor”) shippers' permit; and (3) the direct wine shippers' permit. Subject to various
restrictions, the out-of-state beer shippers' permit authorizes a person located outside
of the state to ship beer to a person holding a beer wholesalers' permit. The out-of-state
liquor shippers' permit, subject to various restrictions, authorizes a person located
outside of the state to ship liquor to a person holding a liquor wholesaler permit,
manufacturer's or rectifier's permit, or a winery permit. The direct wine shippers' permit,
also subject to various restrictions, authorizes the manufacturer of wine located either
inside or outside of the state to ship wine directly to individuals in the state who are of
the legal drinking age, acknowledge receipt of the wine shipped, and are not intoxicated
at the time of delivery.

The bill requires out-of-state beer shippers' permittees, out-of-state liquor
shippers' permittees, and direct wine shippers' permittees located outside of the state to
consent to jurisdiction in this state for any proceeding in this state to enforce alcohol
beverages laws found in chs. 125 and 139, stats.

Out-of-state beer shippers' permittees, out-of-state liquor shippers' permittees,
and direct wine shippers' permittees located outside of the state must also accept service
of process in this state for any proceeding in this state to enforce alcohol beverages laws
found in chs. 125 and 139, stats. In order to accept service of process in this state, these
permittees must do all of the following:

•Appoint and continually engage the services of an agent in this state to act as
agent for the service of process on whom all processes, and any action or proceeding
against it concerning or arising out of the enforcement of any provision of chs. 125 and
139, stats., may be served in any manner authorized by law. That service constitutes legal
and valid service of process on the permittee.

•Provide to DOR, in the form and manner prescribed by DOR, the name, address,
phone number, and proof of the appointment and availability of the agent.

•Provide notice to DOR 30 calendar days before termination of the authority of an
agent appointed to accept service of process described above, and proof to DOR's
satisfaction of the appointment of a new agent no less than 5 calendar days before the
termination of an existing agent appointment.

•In the event an agent terminates an agency appointment, notify DOR of that
termination within 5 calendar days and include proof to DOR's satisfaction of the
appointment of a new agent.

Under the bill, if an out-of-state beer shippers' permittee, out-of-state liquor
shippers' permittee, or direct wine shippers' permittee located out-of-state fails to
maintain an agent in this state after a permit is issued, the permittee is considered to
have appointed the Department of Financial Institutions (DFI) as the permittee's agent
and the permittee may be proceeded against in courts of this state by service of process
upon DFI. The bill also codifies in ch. 125, stats., requirements regarding the payment
of occupational taxes, filing reports and tax returns, keeping records, submitting to DOR
inspections and examinations, and paying expenses reasonably attributable to these
inspections and examinations made by DOR at any premises of the permittee located
outside of the state, which are already required under ch. 139, stats.

The bill also authorizes DOR to revoke or suspend any alcohol beverages license
or permit issued in the state if the licensee or permittee ships alcohol into another state
in violation of that state's law.

Lastly, the bill first applies to permits that are issued after the effective date of the
bill, except with respect to suspending or revoking a permit if the permittee illegally ships

alcohol into another state, and the bill has a delayed effective date of approximately 2
months.

AB92,3,116 125.12 (5) (a) The department may, after notice and an opportunity for hearing,
7revoke, suspend, or refuse to renew any retail permit issued by it for the causes
8provided in sub. (4) and any other permit issued by it under this chapter for any
9violation of this chapter or ch. 139, except that, for a violation of sub. (4) (ag) 6. with
10respect to a license issued under s. 125.51 (4) (v) or a violation of s. 125.535 or
11139.035, the department shall revoke the license or permit.

AB92,3,1815 125.12 (5) (b) The department may, after notice and an opportunity for hearing,
16revoke, suspend, or refuse to renew any permit issued by it under this chapter if the
17permittee has shipped alcohol beverages to any person in another state in violation
18of that state's law.

AB92,4,220 125.30 (2) The application for an out-of-state shipper's permit and the permit
21shall be on forms prescribed by the department which shall contain provisions
22determined by the department as necessary to effectuate the purposes of ss. 139.01

1to 139.25 and shall include a provision that the permittee agrees to all of the
2following: