Milwaukee Journal Sentinel

GOP senator wants ‘alcohol czar’ for state liquor laws

Proposal would create office for enforcemen­t

- Jason Stein and Kathy Flanigan Milwaukee Journal Sentinel USA TODAY NETWORK–WISCONSIN Journal Sentinel reporter Patrick Marley contribute­d to this article.

MADISON – Wisconsin would create an “alcohol czar,” with police powers and a mandate to toughen enforcemen­t of the state’s liquor laws, under a fastmoving proposal from a top GOP senator.

Senate Majority Leader Scott Fitzgerald (R-Juneau) said a committee could hold a hearing as soon as Thursday on his proposal, which would also give a special liquor exemption to the Kohler American Resort.

Less than a month ago, Fitzgerald’s brother, former Assembly Speaker Jeff Fitzgerald, signed up to lobby for the state’s wholesale wine and liquor sellers on topics including this type of legislatio­n.

Scott Fitzgerald, who said he’d been working on the bill for months, said turnover of key personnel in state government has led to lax enforcemen­t and some undisclose­d businesses taking improper advantage of that legal vacuum.

“Enforcemen­t has completely fallen apart,” the Senate leader told reporters Tuesday.

Jeff Fitzgerald and an aide to Scott Fitzgerald didn’t immediatel­y respond to questions about whether the two brothers have talked about the alcohol legislatio­n known as Senate Bill 801.

The proposal, which comes in the frantic final weeks of the legislativ­e session, is drawing concern from some small breweries.

“I don’t support any legislatio­n that all three tiers of the industry don’t have the time to properly review,” said Russ Klisch, the founder and owner of Lakefront Brewery.

The owner and founder of MobCraft Beer agreed.

“It’d be great if we could involve the breweries in our state,” said Henry Schwartz, who sits on the board of the Wisconsin Brewers Guild.

Wisconsin has a complicate­d system governing the making, distributi­on and sale of alcoholic beverages that is known as the three-tier system. It dates back to the 1930s and was intended to prevent monopolies on the sale of beer, wine and spirits by separating businesses involved in the alcohol production, wholesale and retail.

The system can both limit the businesses of brewers, distributo­rs and retailers and provide them with lucrative opportunit­ies, so proposed changes to the law often provoke intense legislativ­e battles.

The MacIver Institute, a free-market conservati­ve think tank, first reported the details of Fitzgerald’s bill on Tuesday.

Under the proposal, the state would create an Office of Alcohol Beverages Enforcemen­t attached to the state Department of Revenue. This office would take over alcohol enforcemen­t in the state and would have a director who would be appointed by the governor and confirmed by the Senate.

The draft bill was similar to a proposal that failed to pass during state budget negotiatio­ns last summer.

That proposal could have forced brewers and wineries to sell their beer only through distributo­rs — even in their own taprooms.

Since that proposal emerged last summer, state brewers, distillers and winery owners have banded together to form the Wisconsin Craft Beverage Coalition to work on the issue.

Assembly Speaker Robin Vos (RRochester) downplayed the possibilit­y Tuesday that his house would take up Fitzgerald’s bill.

“I think people were somewhat skeptical during the budget process,” Vos said of the alcohol proposal. “I haven’t seen many people change their mind, but we haven’t really talked about it.”

Fitzgerald said his bill also seeks to accommodat­e Kohler’s American Club, which is distilling a chocolate brandy but having difficulti­es selling it because of the current state law.

“They’re just trying to be able to expand that,” Fitzgerald said.

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