Alcohol Beverage Regulation and Licensing Q & A Follow-up

As a follow-up from the Tuesday, May 8, 2018 Alcohol Beverage Regulation and Licensing program, posted below are questions and answers as well as some documents that were requested:

Here are the documents that were requested from the program:
Waukesha Resolution for Selling in City Parks
Quota license calculation
125.06(6) allowing county ees to sell beer in county park
17-286 Sale of Malt Beverages – Park (Oshkosh)

Question: It is my understanding the employees need to go to bartender’s class, so they need to pay the Town for the Operator’s License. Even the Lions Picnic has a licensed operator on premise during their auction.
ANSWER: No, Chapter 125 does not require that each employee of a retail licensee hold an operator’s license, complete a responsible beverage server training course, and pay the municipality for an operator’s license. If the employee does not hold an operator’s license, they must be under the immediate supervision of the licensee, members of the licensee’s immediate family who are 18 years old or older, the approved agent of a corporation or LLC, a licensed manager or someone who is a licensed operator.

Question: Can an owner be an agent?
ANSWER: Yes.

Question: Do picnic licenses have to be published before issued?
ANSWER: No, only permanent retail licenses are required to be published.

Question: At renewal time, under what circumstances should the applicant use an original application instead of a renewal application?
ANSWER: Licensees seeking to renew their licenses should use Form AT-115 (Renewal Alcohol Beverage License Application, only use Form AT-106 (Original Alcohol Beverage Retail License Application) for applicants who are not renewing a license.

Question: Does the municipality have to make sure a bar where food is being sold that they have been inspected by Dept of Ag and Trade and consumer affairs?
ANSWER: Yes, “Class B” and “Class C” licenses should not be issued unless the premises comply with the rules issued by DATCP governing sanitation in restaurants.

Question: Are barber shops/salons are allowed to obtain a Class B Beer license? I have been to many salons outside of our municipality that offer wine or beer…I assume this is not legal?
ANSWER: Because of the prohibition on conducting other business on a Class “B” premises, salons cannot offer beer, etc. while someone is receiving their salon services.

Question: Can a business whose primary business is a sign painting studio obtain a “Class B” or Class “B” license? There is no food served at the studio.
ANSWER: Painting studios as defined under s. 125.02(11m), Wis. Stat. (not sure what you mean by “sign” painting studio) can obtain a Class “B” license and in turn could also apply for a “Class B” liquor license.

Question: Can a hotel hold a “Class C” license if they do not have restaurant?
ANSWER: No, sec. 125.51(3m)(c), Wis. Stats., provides that “Class C” (wine) licenses may be issued to a restaurant in which the sale of alcohol beverages accounts for less than 50% of gross receipts.

Question: Can a license transfer to another municipality?
ANSWER: Yes, a municipality may make a request to another municipality that is contiguous or within 2 miles of the requesting municipality to transfer a Reserve “Class B” license to the requesting municipality. The transferring municipality may transfer no more than 3 Reserve licenses.

Another situation where a license may transfer to another municipality is if there is an annexation that includes a licensed establishment and the annexing municipality has no license available. See sec. 124.41(4)(c).

Question: Do county RV parks who sell beer need to be published in the paper?
ANSWER: No, the county can have its employees sell beer without a license, so there is no license application to publish. If a retail license is issued to a concessionaire selling alcohol beverages by agreement with the county, the license application must be published.

Question: Where do the bona fide clubs buy their alcohol along with chambers?
ANSWER: Like all retail licensees, they must purchase from a wholesaler or other entities that can sell directly to retailers (such as brewpubs, or breweries manufacturing 300,000 or less barrels of fermented malt beverages in a calendar year).

Question: When can we consider an offense to be considered substantially related to the license?
ANSWER: There isn’t a list or chart that indicates whether a particular crime is “substantially related” to the licensing activity. The governing body must do a case by case analysis. That said, it is pretty clear that a conviction for manufacture or possession with intent to deliver a controlled substance would be substantially related because drug dealing is known to occur at bars, etc. The key is to be able to find a strong correlation between the crime (at least one felony or multiple criminal misdemeanor or ordinance convictions) and the licensing activity. For example, a governing body might find certain “money” or “theft” crimes are substantially related because alcohol retailers and operators must be trusted to handle customer transactions involving cash, credit cards, etc. On the other hand, a crime involving mistreatment of an animal would likely bear no relation to one’s ability to operate a tavern or work as a bartender.

Question: Do you have any guidelines for offences we are noting to the governing body for Agents, or Operators,…CCAP suggestions for background checks?
ANSWER: See the response above. Municipal officials are advised to request the Crime Information Bureau within the Wisconsin Department of Justice conduct a criminal history search of license applicants. The Crime Information Bureau can be reached at (608) 266-5764. A review of information posted on CCAP alone does not constitute a complete criminal background check.

Question: Can we charge the fee for the provisional license and then also charge the same person for their operator’s license when they get it?
ANSWER: Yes, the municipality cannot charge more than $15 for a provisional license, and the municipality shall establish the fee by ordinance for the operator’s license.

Question: Please provide the link with phone number for the 2018 Agent territories (page 45 of 55).
ANSWER: The email addresses for Revenue’s Alcohol and Tobacco Enforcement Agents are posted on the Municipal Clerk’s Association website. http://www.wisclerks.org/liquorlicensing

Question: Where can I find the rules for wedding barns online?
ANSWER: DOR has not published any formal guidance on wedding barns.

Question: Where is the application for operator’s license on the web site, I’ve been unable to locate it?
ANSWER: DOR does not prepare an operator’s license application.

Question: Is it up to us to make sure an establishment has passed a health inspection before we issue their license if they are selling food?
ANSWER: Yes, “Class B” and “Class C” licenses should not be issued unless the premises comply with the rules issued by DATCP governing sanitation in restaurants.

Question: Please clarify, when someone applies for an operator license, they bring in their proof that they took the class, application filled out and paid for, a background check is done. Does this all have to happen 15 days before the Council meets to approve?
ANSWER: Yes, the governing body should not grant an operator’s license prior to 15 days after receiving an application. The governing body is not required to act within 15 days, but may not act sooner. The governing body should not grant a license if a background check is not complete.

Question: If there is no change to an agent to a licensed premises, there is no need for that individual to retake the beverage servers course, correct?
ANSWER: Yes. An approved appointed agent is not required to retake the responsible beverage server training course.

Question: If I had 25 licenses in 1997 and I now have 19 licenses, does that mean I can issue 6 licenses BEFORE I have to issue any of my 3 Reserve licenses?
ANSWER: You are not required to issue all “regular” licenses prior to issuing Reserve licenses. The municipality may require an applicant to obtain a reserve license if it chooses.

Question: AT-103 is that going to be part of Act 289 – no notary?
ANSWER: Yes, that is correct, effective July 1, 2018, the AT -103 will no longer require notarizing.

Question: Are there any gross receipt requirements on the restaurant required with the brew pub?
ANSWER: No, the statute simply requires that a brewpub operates a restaurant on the brewpub premises.

Question: I was contacted by a resident in regards to a visit to a local bar by the Sheriff’s Dept. An underage and unlicensed person was serving and consuming alcohol. Should the Sheriff’s Dept. be contacting me? How do I know about these violations?
ANSWER: There is no statute requiring the Sheriff’s Department to notify the clerk of their enforcement actions. If the municipality has a demerit point system, it is a good idea to request the Sheriff’s Department to notify the clerk of any violations against an alcohol licensee. Although not required, we expect that most law enforcement agencies would be willing to reach agreements regarding sharing such information.

Question: Are out of state members of an LLC required to go through the background check process?
ANSWER: Yes, all members of an LLC are required to submit the Auxiliary Questionnaire, and be subject to a criminal background check.