125.20 Interest restrictions.
749 words·~3 min read·
/wi/chapter-125/125-20-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
125.20 Interest restrictions.
(1)Definitions. In this section:
(a)“Distribution permit” means a permit issued under s. 125.28 or 125.54 .
(b)“Distribution permittee” means a person holding a distribution permit and includes a restricted individual of such a person.
(c)“Production permit” means a permit issued under s. 125.29 , 125.295 , 125.52 , or 125.53 , a permit issued under s. 125.30 to a brewer in another state, or a permit issued under s. 125.58 to a manufacturer, rectifier, or winery in another state.
(d)“Production permittee” means a person holding a production permit and includes a restricted individual of such a person.
(e)“Restricted individual” means any of the following:
1. An individual identified on a manager’s license or who works or acts in a managerial capacity for a permittee or licensee.
2. An individual serving as an officer, director, member, manager, or agent of a corporation or limited liability company holding a permit or license.
3. An individual holding more than a 10 percent ownership interest in a permittee or licensee.
(f)“Restricted entity” means an entity holding more than a 10 percent ownership interest in a permittee or licensee.
(g)“Restricted investor” means a restricted individual or restricted entity.
(h)“Retail license or permit” means a Class “A,” Class “B,” “Class A,” “Class B,” or “Class C” license, a Class “B” or “Class B” permit, or a no-sale event venue permit.
(i)“Retail licensee or permittee” means a person holding a retail license or permit and includes a restricted individual of such a person.
(2)Producers.
(a)No production permittee may hold any interest in any distribution permittee.
(b)No production permittee may hold any interest in any retail licensee or permittee, except as authorized under s. 125.295 .
(3)Distributors.
(a)No distribution permittee may hold any interest in any retail licensee or permittee.
(b)No distribution permittee may hold any interest in any production permittee, except as provided in s. 125.28
(d).
(4)Retailers.
(a)No retail licensee or permittee may hold any interest in any distribution permittee.
(b)No retail licensee or permittee may hold any interest in any production permittee, except as authorized under s. 125.295 .
(5)Construction of section; authorized cross-tier activity.
(a)For purposes of this section and s. 125.01 , permittees are categorized under the 3-tier system as follows:
1. A production permittee operates within the production tier.
2. A distribution permittee operates within the distribution tier.
3. A retail licensee or permittee operates within the retail tier.
(b)This section does not prohibit a licensee or permittee from engaging in any activity that this chapter explicitly authorizes for the type of license or permit held or that is explicitly authorized under the terms of the license or permit.
(c)To the extent there is a conflict between any provision of subs.
(2)to
(4)and any provision of ss. 125.24
(3), 125.25
(b), 125.26
(b), 125.27
(7), 125.28
(b), 125.29
(a), 125.295
(a)6. , 125.30
(c), and 125.69
(1), the provisions of ss. 125.24
(3), 125.25
(b), 125.26
(b), 125.27
(7), 125.28
(b), 125.29
(a), 125.295
(a)6. , 125.30
(c), and 125.69
(1)are controlling.
(d)If a license or permit may not be issued to a person under s. 125.24
(3), 125.25
(b), 125.26
(b), 125.27
(7), 125.28
(b), 125.29
(a), 125.295
(a)6. , 125.30
(c), or 125.69
(1), the person may not acquire an interest prohibited under s. 125.24
(3), 125.25
(b), 125.26
(b), 125.27
(7), 125.28
(b), 125.29
(a), 125.295
(a)6. , 125.30
(c), or 125.69
(1)after the license or permit has been issued.
(6)Permissible interests.
(a)Notwithstanding subs.
(2)to
(4), a licensee or permittee may be owned in part by, or grant an ownership interest to, a restricted investor in a different tier if all of the following are satisfied:
1. No single restricted investor holds more than a 10 percent ownership interest in the licensee or permittee, including any passive or disregarded entity connected to the restricted investor.
2. No restricted investor serves as an officer, director, manager, operator, or agent of the licensee or permittee.