Top GOP senator Scott Fitzgerald wants 'alcohol czar' to toughen Wisconsin's liquor laws

Milwaukee Journal Sentinel

MADISON - Wisconsin would create an "alcohol czar" with police powers and a mandate to toughen enforcement of the state's liquor laws, under a fast-moving 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 (R-Rochester) 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.

Rep. Dale Kooyenga (R-Brookfield) said he'd also like to see the Kohler operation expand but hadn't seen Fitzgerald's bill. Many other entrepreneurs are in the same position, said Kooyenga, who has unsuccessfully pushed another bill to provide more opportunities for a variety of new businesses, not just Kohler.

"They say, 'I have a great idea and I want to bring it to market.' And they can't do it," Kooyenga said of these entrepreneurs.

Journal Sentinel reporter Patrick Marley contributed to this article.