2023-2024 Legislative Session

June 12, 2023 | Number 6

Shared Revenue Compromise

After decades of frustration, years of belt tightening and difficult decisions, and nearly twelve months of messaging and lobbying, we are thrilled to report that an agreement to increase shared revenue to local governments is in the final stages! There are still details left to be finalized, but Speaker Robin Vos, Senate Majority Leader Devin LeMahieu, and Governor Evers have come to an agreement that includes:

• One Penny of the states five cent sales tax will be dedicated to local government funding.
• The largest increase in shared revenue since the 1970s! The compromise provides a minimum 20% increase to all communities in Wisconsin with the exception of Milwaukee which receives 10% and the ability to adopt a 2% sales tax through a 2/3 vote of the Common Council.
• A commitment to increase shared revenue in the future by the percentage increase in the sales tax

We are being told that the compromise will be very similar to the amendment to AB 245 with the increased minimum funding for communities, local votes for Milwaukee city and county sales tax, and some technical modifications.

Thank you to the bill authors, Senator Mary Felzkowski and Representative Tony Kurtz and their staff for all the tireless work on this initiative. We also thank legislative leadership and the Governor's office for spending long days and nights to find compromise. Thank you to our partners for taking this journey with us and sticking together until the end! Finally, we thank all of you, our members, for sharing your voice and your story to make the need real and tangible.

⭐ We will provide more details as we learn them. Both houses plan to vote on the shared revenue package on Wednesday as both the Senate and the Assembly will be in session.

RECENTLY INTRODUCED LEGISLATION

of Municipal Importance

Below is a continuing summary of the 2023-2024 Legislative proposals the League is monitoring.

AB 304, Regulation of Alcohol Beverages and Enforcement of Alcohol Beverage Laws. The alcohol regulation bill with nearly two dozen provisions is the result of several stakeholders in the state's alcohol industry working together in an attempt to produce compromise legislation. Many items in the bill have been introduced before only to fall short in the legislative process.

AB 304 would address licenses for popular wedding barns, push back closing times for wineries and allow underage persons at new axe throwing establishments with liquor licenses. Another major provision is the proposal to create a Division of Alcohol Beverages in the Department of Revenue. The new office would create a separate division with bureaus dedicated to enforcement, legal services, and education and community outreach, according to the Legislative Reference Bureau summary of the bill.

Upon initial review our team identified some good provisions in the bill for municipalities including:

• Allows a municipality to transfer liquor licenses more broadly than just to an adjoining municipality.
• Allows Class C (wine) licenses to be issued to premises besides restaurants.
• Increases the safe ride surcharge from $50 to $75.
• Allows breweries to open restaurants.

The bill also contains some provisions that infringe on local control. Those items include:

• The bill would prevent local governments from prohibiting Class A licensees from giving away limited free samples.
• Creation of a DOR-issued bartenders license usable anywhere in the state. Currently, issuing bartenders licenses is the sole discretion of local governments.
• Creation of a DOR-permitted “Full-service retailer” associated with a local brewery, winery, or distillery. The larger the producer, the more retail locations (up to 3) they can open. The retailer can sell alcohol and stay open as long as bars are allowed to be open under local ordinances. Both local governments and the state MUST permit the retailer, although the locals could restrict sales at the location to only the type of product produced by the brewery, winery, and distillery.
• Creation of a DOR-permitted “No-sale event venue.” Think “wedding barn.” This allows DOR to issue a license for event venues to give away beer and wine (no liquor).

This is a leadership bill and it is moving very quickly. It was introduced late last week and the Assembly State Affairs Committee has scheduled public hearing on Tuesday, June 13th at 1:30 pm in Room 300 Northeast in the State Capitol on the bill. The League is continuing to review this comprehensive bill.

⭐ Please contact the League if you are interested in testifying on this bill at Tuesday's hearing or if you have any insight or comments after reviewing the legislation.

⭐View adopted budget motions for previous Joint Finance Action here.

⭐To watch live coverage of the Joint Finance Committee as they take action on the 2023-2025 Budget see Wisconsin Eye.

Email questions or comments to:

Toni Herkert, Government Affairs Director, therkert@lwm-info.org or

Katie Scott, Government Affairs Specialist, kscott@lwm-info.org