Rep Ballweg's co-sponsorship

TO: All Legislators
FROM: Senator Jim Sullivan Senator Glenn Grothman Representative Mark Gottlieb Representative Gordon Hintz
DATE: June 11, 2007
RE: Co-sponsorship of LRB-2326/1 – Creating an Economic Development Exemption to the Quota on “Class B” Liquor Licenses
We are introducing LRB-2326/1 which will create an economic development exemption to the state-imposed limit on the number of liquor licenses a municipality may issue. Numerous communities around the state, such as Oconomowoc, Delafield, Oshkosh, Monona, Green Lake, Slinger, Ripon, Lake Geneva, Saukville, and West Allis to name a few, are at or near their quota and have no liquor licenses available to issue.
Such municipalities are unable to accommodate restaurants seeking to anchor mixed-use developments in their community because no liquor licenses are available. These communities are foregoing potential economic development opportunities that are vital to their community's redevelopment and growth. Currently, state statutes exempt only restaurants with a seating capacity of 300 or more.
This bill will exempt full-service restaurants from the limit on the number of liquor licenses that a municipality can issue. The bill defines a full-service restaurant as establishments where meals are prepared, served, and sold for consumption on the premises and in which the sale of alcohol beverages accounts for 50 percent or less of the restaurant's gross receipts. The local community will maintain the authority to issue, or not issue, "Class B" liquor licenses that best meet the needs of their communities.
The League of Wisconsin Municipalities and the Wisconsin Restaurant Association have indicated their support this legislation.
If you would like to co-sponsor this legislation, please call Sen. Sullivan’s office at 6-2512 or Rep. Gottlieb’s office at 7-2369 by Friday, June 22.
Analysis by the Legislative Reference Bureau
Current law prohibits a person from selling alcohol beverages at retail unless the seller possesses a license or permit authorizing the sale. A “Class B” license authorizes the retail sale of intoxicating liquor for consumption on the licensed premises and, depending on the type of intoxicating liquor and whether a municipal ordinance has been adopted, may also authorize the retail sale of intoxicating liquor for consumption off the licensed premises, subject to certain limitations. Current law imposes a quota on the number of “Class B” licenses that a municipality may issue. This quota is generally determined by a formula based on the number of licenses previously issued by the municipality and the municipality’s population. Current law provides quota exceptions for a full−service restaurant that has a seating capacity of 300 or more persons and for a hotel that has 50 or more rooms and has a restaurant or banquet room meeting certain criteria. Current law also provides a quota exception for certain opera houses and theaters, but a “Class B” license issued under this exception authorizes the sale of intoxicating liquor only for consumption on the premises and only in connection with ticketed performances. This bill modifies the quota exception for full−service restaurants. The bill provides a quota exception for full−service restaurants regardless of seating capacity, but creates a definition of “full−service restaurant” that limits the exception to establishments where meals are prepared, served, and sold for consumption on the premises and in which the sale of alcohol beverages accounts for 50 percent or less of the establishment’s gross receipts. In addition, a “Class B” license issued under this exception authorizes the sale of intoxicating liquor only for consumption on the premises. For further information see the local fiscal estimate, which will be printed as an appendix to this bill.