(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 re- tail 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 (2) (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 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6. , 125.30 (3) (c) , and 125.69 (1), the provisions of ss. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (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 (2) (b) , 125.26 (2) (b) , 125.27 (7), 125.28 (2) (b) , 125.29 (2) (a) , 125.295 (2) (a) 6. , 125.30 (3) (c) , or 125.69 (1), the person may not acquire an interest prohibited under s. 125.24 (3) , 125.25 (2) (b) , 125.26 (2) (b) , 125.27 (7) , 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (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. 3. No restricted investor is involved in the day-to-day operations of the licensee or permittee or exerts any control over such operations beyond the person’s ability to vote as an owner. 4. The aggregate amount of ownership held by all restricted investors in the licensee or permittee does not exceed 49 percent. 5. The licensee or permittee discloses all restricted investors to the division. 6. Each restricted investor executes an affidavit, on a form prescribed by the division, swearing to a complete lack of involvement in the day-to-day operations of, and lack of control over, the licensee or permittee beyond the restricted investor’s ability to vote as an owner. If the restricted investor is a restricted entity, the affidavit shall be executed on behalf of the restricted entity by an individual who is an officer or director of the restricted entity or who otherwise has management authority over the restricted entity. (b) A licensee or permittee, or a restricted individual of a licensee or permittee, may enter into a landlordtenant relationship with another licensee or permittee operating in a different tier if all of the following are satisfied: 1. The lease or rental agreement explicitly states that the landlord has no control over or day-to-day involvement in the business of the tenant. 2. No control or involvement in the business of the tenant by the landlord exists. 3. The landlord and tenant maintain compliance with ss. 125.33 and 125.69, as applicable and subject to s. 125.33 (2) (hr), and this requirement is set forth in the lease or rental agreement. 4. The lease or rental agreement is in writing and disclosed to the division for review. (c) Notwithstanding subs. (2) to (4), a spouse may have an interest in the license or permit of the other spouse if all of the following are satisfied: 1. The marriage is governed by a valid marital property agreement or prenuptial agreement. 2. The marital property agreement or prenuptial agreement was disclosed on any license or permit application. 3. A copy of the marital property agreement or prenuptial agreement is provided to the municipal clerk or division prior to issuance of the license or permit. 4. Both spouses execute an affidavit, on a form prescribed by the division, swearing to a complete lack of involvement in the day-to-day operations of, and lack of control over, each respective business. (d) For purposes of subs. (2) to (4), employment in a nonmanagerial capacity for a licensee or permittee is not an interest in the licensee or permittee.
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