Lawmakers are working to overhaul Wisconsin's alcohol industry. Here's where the changes stand

MADISON — A comprehensive overhaul of the state's alcohol industry is moving forward in the state Legislature as lawmakers return for fall floor periods, with a public hearing in a state Senate committee on Thursday.

The legislation passed the Assembly 90-4 in June, with three Democrats and one Republican voting against it.

The Republican-led proposal follows years of negotiation and nearly a decade of infighting over what alcohol industry professionals said were unclear laws governing beer, wine and spirits sales in Wisconsin. But despite having buy-in from major players within the industry, opposition remains among some who argue the proposal would adversely affect private event venues like wedding barns.

Here's what to know as debate on the proposal continues.

What are some of the key components of the bill?

The proposal clarifies a host of alcohol regulations in the state, touching everything from who can invest in new alcohol businesses, to winery operations, to when bars close during the Republican National Convention next summer. Alcohol producers would be allowed to sell their products without a tap room or production facility on site, and winemakers could stay open past 9 p.m. into the early morning hours, similar to most bars.

Wedding barns and other private event venues planning to serve liquor would be required to get a new type of license to do so. The license, a “no sale event venue permit,” would allow those renting the barn to bring in their own alcohol but would limit wedding venue owners to rent or lease the property on no more than six days per year and one day per month. The requirement would not apply to campgrounds or parking lots where events occur, including tailgates.

Those types of venues have soared in popularity over the years and have offered a significant supplement of income for struggling farmers. But they have operated in regulatory limbo.

The bill would also create a new Division of Alcohol Beverages within the state Department of Revenue. The DOR regulates the alcohol industry in Wisconsin but there are few staff dedicated to enforcing the state’s alcohol laws, which has resulted in uneven enforcement.

The bill also creates within the division separate bureaus dedicated to enforcement, legal services, and education and community outreach. The administrator of the division may appoint special agents and other employees necessary to carry out the permitting, audit, education, legal, and enforcement functions of the division, according to the bill.

Who supports these changes?

Groups registered in support of the bill include the Wisconsin Wine and Spirit Institute, the Wisconsin Restaurant Association, the Wisconsin Hotel and Lodging Association, the Wisconsin Fuel and Retail Association, the Wisconsin Craft Beverage Coalition, the Wisconsin Beer Distributors Association, New Glarus Brewing Company, Molson Coors, Kwik Trip, Mark Anthony Brands, Wisconsin Amusement and Music Operators and Wisconsin Independent Businesses, Inc.

Who opposes the bill?

The Wisconsin Farm Bureau Federation and the Wisconsin Farmers Union are both registered to lobby against the proposal.

Representatives for the Wisconsin Institute for Law & Liberty and the Institute for Justice testified on Thursday noting their opposition to the provisions in the bill that would affect private event venues, which they called "heavy-handed" and "as un-Wisconsin as (they are) un-American."

Several owners of those venues also testified, arguing their businesses shouldn't be included in the bill at all.

What needs to happen for the bill to become law?

The bill needs approval from the state Senate, along with a signature from Gov. Tony Evers.

DOR Secretary Peter Barca said the agency is "enthusiastic about seeing this type of a bill pass."

"It maintains the three-tier structure and it is comprehensive in the sense that it does allow for some meaningful changes to level the playing field," Barca told the committee on Thursday.

Barca said the governor supports "the vast elements" of what the bill seeks to achieve, but the administration had hoped the bill could be passed as part of the 2023-25 state budget process in order to dedicate any revenue it generates to the new enforcement division within DOR.

"I think a deal could be had," Barca said.

Several lawmakers on the committee asked about potential amendments. The bill's authors did not rule out the possibility, but noted how difficult it was to develop a compromise proposal.

"This bill is very fragile," said Rep. Rob Swearingen, R-Rhinelander. "Should something get moved around … the whole thing could collapse."

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This article originally appeared on Milwaukee Journal Sentinel: What to know about the overhaul of Wisconsin's alcohol industry