LEGISLATIVE NOTES EFFECTIVE, FAIR ENFORCEMENT

BY SCOTT STENGER, STENGER GOVERNMENT RELATIONS

Assembly Speaker Robin Vos (R-Rochester) and Senate Majority Leader Devin LeMahieu (R-Oostburg) recently introduced Assembly Bill 304 to update Chapter 125. Wisconsin is among the majority of states that have a three-tier system of alcohol beverage regulation. This license-based system allows private enterprises to conduct production, wholesale distribution and retail sales of distilled spirits, wine and beer subject to industry oversight to promote health, welfare, safety and competition. The Wisconsin free-market model stands in stark contrast to the government monopoly system embraced in some other states.

Assembly Bill 304 would incorporate a number of changes advocated by the TLW, including the licensure of event venues like wedding barns. Under the bill, all event venues that have more than six events a year are required to obtain a local alcohol license to operate and must follow all the provisions of Chapter 125 just like every other licensed business in the state.

In addition, the bill would:

• Establish a dedicated Division of Alcohol Beverages in the Department of Revenue (DOR).

• Increase the operating while impaired SafeRide surcharge from $50 to $75 to increase revenue for the program.

• Create a statewide operator’s license.

• Amend current law to allow any eligible municipality within the county at quota to acquire additional liquor licenses from adjacent municipalities.

• Reduce the penalty for Permit Class B licensees to purchase up to 15 cases of beer per month at a liquor store from a felony to a $100 civil forfeiture.

• Mandate municipalities to provide information on free participation in the TLW SafeRide Program for six months when a liquor or beer license is issued.

• Require brewery closing hours to be the same as Class B establishments.

• Permit a retail license to be issued for an axe-throwing facility, while allowing underage people on the premises.

The proposed legislation would: clarify and expand permissible activities and abilities under production permits, including full-service retail sales at taprooms; specify the types of passive or limited investments that are permitted across tiers, while making clear that a specific statutory exception is necessary, or cross-tier ownership would be prohibited regardless of subchapter and alcohol beverage product sold; detail permissible arrangements between producers for contract production of alcohol beverages; and make changes to taste samples and various other provisions of Chapter 125 for transparency and consistency in retail license regulation. To combat illegal internet sales of alcohol, the legislation would also implement reporting requirements for common carriers shipping alcohol beverages. TLW