Major overhaul for alcohol regulation in Wisconsin gets public hearing

A major overhaul of Wisconsin’s alcohol laws, including a new state department to enforce them, is part of a Republican bill state lawmakers hope to pass within the next two weeks. While major industry players are supportive, owners of wedding barns say the legislation singles them out and will put many out of business.

The sprawling Assembly Bill 304 would make numerous tweaks to Wisconsin’s three-tiered alcohol regulatory system created in the 1930s following the repeal of prohibition. It would create a new Division of Alcohol Beverages attached to the Wisconsin Department of Revenue, which is currently charged with enforcing alcohol regulations.

Assembly Speaker Robin Vos, R-Rochester, is a coauthor of the legislation. During a public hearing held by the Assembly Committee on State Affairs Tuesday, he said Wisconsin’s alcohol regulations haven’t kept pace with a changing industry, including a boom of craft breweries, wineries and distilleries.

“This comprehensive piece of legislation will provide clarity and consistency across and within tiers, improve regulatory structures, create a new division dedicated to the education of, promotion of, and oversight of enforcement in the industry,” Vos said.

Committee Chairman Rep. Rob Swearingen, R-Rhinelander, said the bill is the result of 10 years of negotiations with industry leaders within the state’s three-tiered system.

“It’s quite thick, it is also very fragile,” Swearingen said. “And I’m hoping to get this bill to the governor’s desk through the Assembly and hopefully through the Senate very, very soon.”

The DOR’s new enforcement division would be responsible for issuing statewide bartenders’ licenses. They’d be similar to what are now offered by municipalities, but would allow bartenders to work anywhere in Wisconsin.

Retail liquor licenses could be transferred between municipalities within a given county under the bill, which would allow for state quotas on the number of liquor licenses per community to be exceeded.

The bill allows breweries, wineries and distilleries to open full-service retail stores where the products are made, as well as up to three retail outlets outside the premises with a division-issued permit.

The bill would also expand the hours of operation for breweries, wineries and distilleries with retail outlets to match those of bars and restaurants with Class B alcohol licenses. Current law requires a winery operating a retail store with a Class B license to close by 8 p.m.

The bill has the support of major brewers, distributors, retail outlets, grocers and the Tavern League of Wisconsin. One group strongly opposed to the changes are those who own private event spaces known as wedding barns.

Wedding barns that sell or allow alcohol at events would be required to get either a Class B liquor licenses or a “no sale event venue” permit that would allow those renting the facilities to bring their own beer or wine to an event and offer it at no cost, or purchase wine or beer from a catering company that would serve it using licensed bartenders. Wedding barns operating under “no sale event venue” permits would be allowed to offer alcohol no more than six days per year.

Steve Nagy, who co-owns the Homestead Meadows wedding barn in Outagamie County, blasted the bill and said venues like his don’t want to sell alcohol because caterers brought in to serve food and drinks at weddings already use licensed bartenders He said wedding barns that chose not to pay for a liquor license will go out of business.

“What viable business could be in business six days a year and one day a month?” Nagy said. “That’s ridiculous. It really is. And it’s disappointing.”

Nagy pointed to exceptions in the rules for campgrounds and parking lots at major sporting events where alcohol is consumed unregulated.

“There are more alcohol-related infractions after one Packer game or during one Packer game than are ever documented in the state of Wisconsin for Homestead Meadows or any other wedding-type venue.”

Rep. Brooks, R-Saukville, who is a bar owner himself, told wedding barn owners speaking at the hearing that “the complaint box is full” and encouraged speakers to offer solutions.

“I do not want to put this bill at risk over one industry,” Brooks said. “So, if we have to look at alternatives, so be it. I’m willing to listen, but I’m not willing to risk ten years of hard work on this in this document. So please reach out to us and give us alternatives.”

One alternative proposed by Nagy was to include wedding barns in the list of exemptions to the liquor license or no-sale license requirements.

While all committee members voiced support for making changes to Wisconsin’s three-tiered structure, there were some concerns. Rep. Francesca Hong, D-Madison, who owns a bar and restaurant, said she was worried the new Division of Alcohol Beverages wouldn’t have enough resources to process thousands of new license applications from retailers and bartenders.

“We know that the success of this bill is in its implementation, and I am concerned that we are not putting enough emphasis on the need to make sure that we’re setting up the agency to successfully implement this bill, to make sure that there is community engagement, to make sure that we have folks educating members who are applying for licenses and permits,” Hong said.