SB485-SSA1,14,17 11(2) Creation and organization. (a) 1. A cooperative wholesaler may only be
12created as provided under s. 185.043 (2) and this section. Each cooperative
13wholesaler operating under authority of this section shall be organized under ch. 185
14but shall be subject to the limitations on such cooperatives imposed by this section.
15Subject to subd. 3., only small wineries may be members of a cooperative wholesaler.
16The principal purpose of a cooperative wholesaler shall be to sell and distribute wine
17manufactured, blended, or mixed, and also bottled, by its members.
SB485-SSA1,14,2018 2. Notwithstanding s. 185.08 (1), a cooperative wholesaler shall include in its
19articles of incorporation under ch. 185 a single location for its agent and principal
20office, which location shall be in this state.
SB485-SSA1,14,2221 3. A small winery may become a member of a cooperative wholesaler only if all
22of the following apply:
SB485-SSA1,14,2323 a. The small winery holds a direct shipper's permit under s. 125.535.
SB485-SSA1,14,2524 b. The small winery is certified by the department under sub. (6) (a) as a small
25winery.
SB485-SSA1,15,6
1(b) In addition to the requirements specified in s. 185.31 for the board of
2directors of a cooperative wholesaler, a director representing a member that is a
3Wisconsin winery shall be either an owner or an employee of that Wisconsin winery.
4If any out-of-state winery is a member of the cooperative wholesaler, at least one
5director shall be either an owner or an employee of an out-of-state winery that is a
6member of the cooperative wholesaler.
SB485-SSA1,15,117 (c) Notwithstanding any provision of ch. 185, a cooperative wholesaler may not
8employ any owner or employee of a member. However, an individual that is an owner
9or an employee of a member may act as a volunteer to assist that cooperative
10wholesaler in the sale and distribution of wine to retailers and other wholesalers in
11the manner authorized under this section.
SB485-SSA1,15,19 12(3) Authorization and activities. (a) 1. Within 7 days after filing its articles
13of incorporation under ch. 185, a cooperative wholesaler shall apply to the
14department for a wholesaler's permit under s. 125.54. The provisions of s. 125.04 (5)
15(c) and (6) shall apply to a cooperative wholesaler as if the cooperative wholesaler
16were a corporation or a limited liability company and, for each of these provisions,
17the department shall determine whether the cooperative wholesaler is most similar
18to a corporation or a limited liability company in the context of that provision and
19apply that provision to the cooperative wholesaler accordingly.
SB485-SSA1,15,2520 2. Notwithstanding s. 125.54 (6), the department may issue not more than one
21wholesaler's permit to any cooperative wholesaler. The department may not issue
22more than a total of 6 wholesalers' permits to cooperative wholesalers in this state.
23The department may not issue any new wholesaler's permit to a cooperative
24wholesaler after December 31, 2008, but may renew wholesalers' permits that were
25initially issued to cooperative wholesalers prior to that date.
SB485-SSA1,16,2
13. No cooperative wholesaler may operate in this state without a wholesaler's
2permit.
SB485-SSA1,16,73 (b) 1. Notwithstanding s. 125.54 (1), and except as provided in subd. 3., a
4cooperative wholesaler issued a wholesaler's permit under par. (a) is authorized to
5sell and distribute only wine. Except as provided in subd. 3., a cooperative
6wholesaler may not sell or distribute any alcohol beverages, or any other product,
7except wine.
SB485-SSA1,16,148 2. A cooperative wholesaler shall purchase on consignment wine from its
9members to be resold to retailers and other wholesalers. Notwithstanding s. 125.69
10(5), a cooperative wholesaler may not purchase wine from any person other than a
11member. A cooperative wholesaler may not resell or distribute wine unless it has
12been purchased on consignment from a member. Notwithstanding s. 125.54 (1), a
13cooperative wholesaler may not sell or distribute wine except to a retailer or to a
14wholesaler holding a permit under s. 125.54.
SB485-SSA1,16,2015 3. A cooperative wholesaler may purchase ancillary wine industry trade goods
16such as bottles, corks, and other supplies used by wineries in the bottling and sale
17of wine if such trade goods do not include any alcohol beverages. Any wine industry
18trade goods purchased by a cooperative wholesaler under this subdivision may be
19offered for resale to the cooperative wholesaler's members or to any winery that was
20formerly a member of the cooperative wholesaler.
SB485-SSA1,16,2421 4. A cooperative wholesaler shall work with all of its members on evenhanded
22terms. Any preferential treatment by a cooperative wholesaler for the benefit of a
23member that is a Wisconsin winery, and any discrimination against a member that
24is an out-of-state winery, is prohibited.
SB485-SSA1,17,5
1(c) Neither a cooperative wholesaler nor its members are subject to any
2restriction on dealings under s. 125.69 (1) between wholesalers and wineries. Except
3as provided in s. 125.54 (7) (e) and as otherwise provided in this section, all provisions
4of this chapter and ch. 139 that apply to a wholesaler issued a permit under s. 125.54
5also apply to a cooperative wholesaler issued a permit under s. 125.54.
SB485-SSA1,17,10 6(4) Exclusive distribution. A member of a cooperative wholesaler may make
7its wine available for purchase by a retailer or another wholesaler only through the
8cooperative wholesaler of which it is a member. A member of a cooperative
9wholesaler may not sell its wine directly to any other wholesaler or directly to a
10retailer.
SB485-SSA1,18,6 11(5) Semiannual meetings and biennial reports. (a) At least once every 6
12months, the board of directors of a cooperative wholesaler shall meet in person with
13an employee of the department. At each of these meetings, the cooperative
14wholesaler shall provide a detailed report of its operations and sales activities, bring
15whatever documentation the department considers reasonably necessary for the
16department to conduct its review of the cooperative wholesaler, and answer any
17questions the department may have about the cooperative wholesaler's activities.
18A representative of the University of Wisconsin Center for Cooperatives shall also
19attend each of these meetings. Within 7 days after each of these meetings, the
20department shall submit in writing to the cooperative wholesaler all additional
21questions for which the department requests an answer of the cooperative
22wholesaler. The cooperative wholesaler shall provide answers to the department's
23questions within 7 days. Within 6 weeks after each of these meetings, the
24department shall issue a report stating whether the cooperative wholesaler is
25operating properly under this state's law and shall detail any problem areas that the

1cooperative wholesaler must correct. The University of Wisconsin Center for
2Cooperatives shall also issue a report within 6 weeks of each of these meetings and
3detail in that report all recommendations on how the cooperative wholesaler can
4improve its operations and better comply with this state's law. All reports issued by
5the department and by the University of Wisconsin Center for Cooperatives shall be
6publicly available.
SB485-SSA1,18,117 (b) With each application for renewal of a wholesaler's permit issued to a
8cooperative wholesaler, each cooperative wholesaler shall file with the department,
9in the form and manner prescribed by the department by rule, a biennial report that
10includes detailed information on its members, board of directors, and sale and
11distribution activities.
SB485-SSA1,18,14 12(6) Department certification and rule making. (a) 1. The department shall,
13upon application, certify eligible applicants as small wineries and renew prior
14certifications of eligible applicants as small wineries.
SB485-SSA1,18,2215 2. Any winery seeking to become a member of, or to maintain its membership
16in, a cooperative wholesaler may apply to the department for certification as a small
17winery. If the winery meets the definition of a small winery under this section,
18satisfies the requirement under sub. (2) (a) 3. a., and submits any other information
19that the department determines is necessary to certify that the winery is operating
20as a small winery and is eligible for membership in a cooperative wholesaler, the
21department shall certify the winery as a small winery. This certification shall remain
22valid for one year.
SB485-SSA1,18,2423 3. In certifying any winery under subd. 2., the department shall classify the
24winery as either a Wisconsin winery or an out-of-state winery.
SB485-SSA1,19,3
14. The department shall refuse to certify under this paragraph any winery that
2cannot demonstrate it holds all necessary permits for its operations or that the
3department finds is otherwise not in full compliance with the laws of this state.
SB485-SSA1,19,54 (b) The department shall promulgate rules to administer and enforce the
5requirements under this section.
SB485-SSA1,19,9 6(7) Penalties. (a) Any winery that sells or distributes its wine directly to a
7retailer, rather than through a wholesaler or cooperative wholesaler, is subject to a
8fine of not more than $10,000 and revocation of all of its permits by the department
9under s. 125.12 (5).
SB485-SSA1,19,1310 (b) Any cooperative wholesaler that provides preferential treatment to a
11Wisconsin winery or discriminates against an out-of-state winery is subject to a fine
12of not more than $10,000 and revocation of its wholesaler's permit by the department
13under s. 125.12 (5).
SB485-SSA1, s. 24 14Section 24. 125.55 (1) (intro.) and (a) of the statutes are consolidated,
15renumbered 125.55 (1) and amended to read:
SB485-SSA1,19,1716 125.55 (1) The department may issue the following combination permits: (a)
17A
a combination manufacturer's and rectifier's permit.
SB485-SSA1, s. 25 18Section 25. 125.55 (1) (b) of the statutes is repealed.
SB485-SSA1, s. 26 19Section 26. 125.55 (2) of the statutes is amended to read:
SB485-SSA1,19,2120 125.55 (2) A combination manufacturer's and wholesaler's permit may not be
21issued. A combination rectifier's and wholesaler's permit may not be issued.
SB485-SSA1, s. 27 22Section 27. 125.58 (1) of the statutes is amended to read:
SB485-SSA1,20,1623 125.58 (1) The department shall issue out-of-state shippers' permits which
24authorize persons located outside this state to sell or ship intoxicating liquor into this
25state. Except as provided under sub. (4), intoxicating liquor may be shipped into this

1state only to a person holding a manufacturer's, rectifier's, wholesaler's, industrial
2alcohol or medicinal alcohol
permit under s. 125.54 or, if shipped from a
3manufacturer or rectifier in another state holding a permit under this section, to a
4person holding a manufacturer's or rectifier's permit under s. 125.52 or a winery
5permit under s. 125.53
. Except as provided under sub. (4), a separate out-of-state
6shipper's permit is required for each location from which any intoxicating liquor is
7sold or shipped into this state, including the location from which the invoices are
8issued for the sales or shipments. Any person holding an out-of-state shipper's
9permit issued under this section may solicit orders for sales or shipments by the
10permittee without obtaining the sales solicitation permit required by s. 125.65, but
11every agent, salesperson or other representative who solicits orders for sales or
12shipments by an out-of-state shipper shall first obtain a permit for soliciting orders
13under s. 125.65. No holder of an out-of-state shipper's permit issued under this
14section may sell intoxicating liquor in this state or ship intoxicating liquor into this
15state unless the out-of-state shipper is the primary source of supply for that
16intoxicating liquor.
SB485-SSA1, s. 28 17Section 28. 125.58 (4) (a) (intro.) of the statutes is renumbered 125.58 (4) and
18amended to read:
SB485-SSA1,20,2119 125.58 (4) A winery located outside of this state may ship wine into this state
20as provided under s. 125.68 (10) (bm) if all of the following apply: 125.535 and is not
21required to hold an out-of-state shipper's permit under this section.
SB485-SSA1, s. 29 22Section 29. 125.58 (4) (a) 1. to 4. of the statutes are repealed.
SB485-SSA1, s. 30 23Section 30. 125.58 (4) (b) of the statutes is repealed.
SB485-SSA1, s. 31 24Section 31. 125.65 (8) of the statutes is amended to read:
SB485-SSA1,21,3
1125.65 (8) Nonresident persons holding permits under this section may solicit
2sales from retailers in this state only if the orders are solicited for, and will be filled
3by, persons holding permits under s. 125.52 or 125.54.
SB485-SSA1, s. 32 4Section 32. 125.68 (10) (a) of the statutes is amended to read:
SB485-SSA1,21,105 125.68 (10) (a) Except as provided in par. (bm) s. 125.535, no intoxicating liquor
6may be shipped into this state unless consigned to a person holding a wholesaler's
7permit for the sale of intoxicating liquor, other than a retail "Class B" permit under
8s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a
9permit under s. 125.58, consigned to a person holding a manufacturer's or rectifier's
10permit under s. 125.52 or a winery permit under s. 125.53
.
SB485-SSA1, s. 33 11Section 33. 125.68 (10) (b) of the statutes is amended to read:
SB485-SSA1,21,1912 125.68 (10) (b) Except as provided in par. (bm) s. 125.535, no common carrier
13or other person may transport into and deliver within this state any intoxicating
14liquor unless it is consigned to a person holding a wholesaler's permit for the sale of
15intoxicating liquor, other than a retail "Class B" permit
under s. 125.54 or, if shipped
16from a manufacturer or rectifier in another state holding a permit under s. 125.58,
17consigned to a person holding a manufacturer's or rectifier's permit under s. 125.52
18or a winery permit under s. 125.53
. Any common carrier violating this paragraph
19shall forfeit $100 for each violation.
SB485-SSA1, s. 34 20Section 34. 125.68 (10) (bm) of the statutes is repealed.
SB485-SSA1, s. 35 21Section 35. 125.68 (10) (bs) of the statutes is repealed.
SB485-SSA1, s. 36 22Section 36. 125.68 (10) (c) of the statutes is repealed.
SB485-SSA1, s. 37 23Section 37. 125.69 (1) (a) of the statutes is amended to read:
SB485-SSA1,22,424 125.69 (1) (a) No intoxicating liquor manufacturer, rectifier, winery,
25out-of-state shipper permittee,
or wholesaler may hold any direct or indirect

1interest in any "Class A" license or establishment and no "Class A" licensee may hold
2any direct or indirect interest in a wholesale permit or establishment, except that a
3winery that has a permit under s. 125.53 may have an ownership interest in a "Class
4A" license.
SB485-SSA1, s. 38 5Section 38. 125.69 (1) (b) 1. of the statutes is amended to read:
SB485-SSA1,22,126 125.69 (1) (b) 1. Except as provided under subds. 2. to subd. 4., no intoxicating
7liquor manufacturer, rectifier, winery, out-of-state shipper permittee, or wholesaler
8may hold any direct or indirect interest in any "Class B" license or permit or
9establishment or "Class C" license or establishment and no "Class B" licensee or
10permittee or "Class C" licensee may hold any direct or indirect interest in a
11manufacturer, rectifier, winery, out-of-state shipper, or wholesale permit or
12establishment.
SB485-SSA1, s. 39 13Section 39. 125.69 (1) (b) 2. and 3. of the statutes are repealed.
SB485-SSA1, s. 40 14Section 40. 125.69 (1) (c) (intro.) of the statutes is renumbered 125.69 (1) (c)
15and amended to read:
SB485-SSA1,22,2316 125.69 (1) (c) No manufacturer, rectifier, winery, or out-of-state shipper
17permittee,
whether located within or without this state, may hold any direct or
18indirect interest in any wholesale permit or establishment, except as provided in s.
19125.53, and except that a manufacturer that is also a brewer may hold a permit
20issued under s. 125.54 for the wholesale sale of wine only. This paragraph does not
21prohibit any of the following persons from obtaining a permit under s. 125.65:
.
22Except as provided in s. 125.53, no retail licensee may hold any direct or indirect
23interest in any manufacturer, rectifier, winery, or out-of-state shipper permittee.
SB485-SSA1, s. 41 24Section 41. 125.69 (1) (c) 1. to 3. of the statutes are repealed.
SB485-SSA1, s. 42 25Section 42. 125.69 (4) (c) of the statutes is repealed.
SB485-SSA1, s. 43
1Section 43. 125.69 (6) (a) of the statutes is amended to read:
SB485-SSA1,23,52 125.69 (6) (a) No campus or retail licensee or permittee may purchase
3intoxicating liquor from, or possess intoxicating liquor purchased from, any person
4other than a manufacturer, rectifier or wholesaler holding a permit under this
5chapter for the sale of intoxicating liquor.
SB485-SSA1, s. 44 6Section 44. 139.035 of the statutes is repealed and recreated to read:
SB485-SSA1,24,2 7139.035 Wine shipped directly to individuals in this state. (1) All wine
8shipped directly to an individual located in Wisconsin by a person holding a direct
9wine shipper's permit under s. 125.535 shall be sold with the occupational tax
10imposed under s. 139.03 included in the selling price. As directed by the department,
11the taxes imposed under s. 139.03 shall be paid to, and a quarterly return filed with,
12the department once every quarter on or before the 15th day of the next month
13following the close of the calendar quarter. In addition to filing a quarterly liquor tax
14return, each person holding a direct wine shipper's permit under s. 125.535 shall be
15required to file an addendum, on forms furnished by the department, that provides,
16at minimum, the identity, quantity, and price of all wine shipped to individuals in this
17state during the previous quarter, along with the name, address, and birthdate of
18each person who purchased the wine as well as the name of the person of legal
19drinking age who acknowledged delivery of the wine. Working with permittees
20under s. 125.535, the department shall develop forms, in both paper and electronic
21format, for use by such permittees in obtaining this information and complying with
22any other requirement under this state's law in connection with the direct shipment
23of wine. The department shall keep confidential, in the same manner required for
24tax returns under s. 71.78 (1) and (5) to (8), reports submitted under this subsection,

1but the department may use aggregated or summary information from such reports
2for purposes of s. 139.11 (4) (b).
SB485-SSA1,24,7 3(2) Any failure of a person holding a direct wine shipper's permit under s.
4125.535 to pay the occupational tax or file the addendum required under sub. (1)
5within 30 days of its due date constitutes grounds for revocation or suspension of the
6permit. The provisions on timely filing under s. 71.80 (18) apply to the tax and
7addendum required under this section.
SB485-SSA1,24,10 8(3) No wine may be shipped directly to an individual in this state by a person
9holding a direct wine shipper's permit under s. 125.535 unless the tax imposed under
10s. 77.52 or 77.53 is paid on the sale of such wine.
SB485-SSA1, s. 45 11Section 45. 139.11 (4) (title) of the statutes is amended to read:
SB485-SSA1,24,1212 139.11 (4) (title) Confidentiality and publications.
SB485-SSA1, s. 46 13Section 46. 139.11 (4) of the statutes is renumbered 139.11 (4) (a) and
14amended to read:
SB485-SSA1,24,2215 139.11 (4) (a) Sections 71.78 (1) and (4) to (9) and 71.83 (2) (a) 3., relating to
16confidentiality of income, franchise and gift tax returns, apply to any information
17obtained from any person on a fermented malt beverage or intoxicating liquor tax
18return, report, schedule, exhibit or other document or from an audit report relating
19to any of those documents, except that the department of revenue shall publish
20brewery production and sales statistics and shall publish or permit the publication
21of statistics on the total number of gallons of the types and brands of intoxicating
22liquor sold in this state
.
SB485-SSA1, s. 47 23Section 47. 139.11 (4) (b) of the statutes is created to read:
SB485-SSA1,25,424 139.11 (4) (b) Sections 71.78 (1) and (4) to (9) and 71.83 (2) (a) 3., relating to
25confidentiality of income, franchise and gift tax returns, do not apply to any

1information obtained from any person on an intoxicating liquor tax return, report,
2schedule, exhibit or other document or from an audit report relating to any of those
3documents. With the information provided to the department by any person, the
4department of revenue shall publish at least once each month:
SB485-SSA1,25,65 1. Statistics on the total number of liters of the types and brands of intoxicating
6liquor sold in this state.
SB485-SSA1,25,137 2. A current and regularly updated list, made available on paper and on the
8department's Internet Web site, of permit holders that minimally includes detailed
9information on the name, address, contact person, and date of permit issuance for
10every manufacturer's and rectifier's permit issued under s. 125.52, winery permit
11issued under s. 125.53, direct wine shipper's permit issued under s. 125.535,
12wholesaler's permit issued under s. 125.54, and out-of-state shipper's permit issued
13under s. 125.58.
SB485-SSA1,25,1614 3. A report summarizing the identity, quantity, and price of all products sold
15under each winery permit issued under s. 125.53 and each direct wine shipper's
16permit issued under s. 125.535.
SB485-SSA1,25,1817 4. A report summarizing the sales quantity and product data available for all
18products sold under each wholesaler's permit issued under s. 125.54.
SB485-SSA1, s. 48 19Section 48. 185.043 of the statutes is renumbered 185.043 (1) and amended
20to read:
SB485-SSA1,25,2321 185.043 (1) Five Except as provided in sub. (2), 5 or more adults, one of whom
22must be a resident, may form a cooperative by signing, acknowledging and filing
23articles.
SB485-SSA1, s. 49 24Section 49. 185.043 (2) of the statutes is created to read:
SB485-SSA1,26,7
1185.043 (2) If the cooperative is formed for purposes of operating as a small
2winery cooperative wholesaler under s. 125.545, 3 or more individuals, at least one
3of whom must be a resident and all of which must be owners of small wineries
4certified by the department of revenue under s. 125.545 (6) (a), may form a
5cooperative by signing, acknowledging, and filing articles. Membership in a
6cooperative formed under this subsection is limited to small wineries certified by the
7department of revenue under s. 125.545 (6) (a).
SB485-SSA1, s. 50 8Section 50 . Nonstatutory provisions.
SB485-SSA1,26,159 (1) Position authorization. The authorized FTE positions for the department
10of revenue are increased by 1.0 PR position, to be funded from the appropriation
11under section 20.566 (1) (ha) of the statutes, as affected by this act, for the purpose
12of performing computer, audit, and enforcement services incurred in administering
13the tax under section 139.03 (2m) of the statutes and for enforcing the 3-tier system
14for alcohol beverages production, distribution, and sale under chapter 125 of the
15statutes.
SB485-SSA1,26,1716 (2) Small winery interim certification. (a ) The department of revenue shall,
17upon application, certify under this subsection eligible applicants as small wineries.
SB485-SSA1,27,218 (b) Any winery that may seek to become a member of a cooperative wholesaler
19after October 1, 2008, may apply to the department of revenue for certification as a
20small winery. If the winery meets the definition of a small winery under section
21125.545 (1) (d) of the statutes, as created by this act, and satisfies the requirement
22under section 125.545 (2) (a) 3. a. of the statutes, as created by this act, and submits
23any other information that the department determines is necessary to certify that
24the winery is operating as a small winery and will be eligible for membership in a

1cooperative wholesaler after October 1, 2008, the department shall certify the winery
2as a small winery. This certification shall remain valid for one year.
SB485-SSA1,27,63 (c) In certifying any winery under paragraph (b), the department of revenue
4shall classify the winery as either a Wisconsin winery or an out-of-state winery, as
5those terms are defined under section 125.545 (1) of the statutes, as created by this
6act.
SB485-SSA1,27,107 (d) The department of revenue shall refuse to certify under this subsection any
8winery that cannot demonstrate it holds all necessary permits for its operations or
9that the department finds is otherwise not in full compliance with the laws of this
10state.
SB485-SSA1,27,1111 (e) This subsection does not apply after September 30, 2008.
SB485-SSA1,27,1712 (3) Small winery distribution phase-in. Notwithstanding section 125.53 (1)
13of the statutes, as affected by this act, a winery that was issued a permit under
14section 125.53 (1), 2005 stats., prior to the effective date of this subsection is
15authorized to sell at wholesale to other licensees or permittees under chapter 125
16wine manufactured and bottled on the premises covered by the winery permit. This
17subsection does not apply after June 30, 2009.
SB485-SSA1,27,2118 (4) Rule making. (a ) The department of revenue shall submit in proposed form
19the rules required under sections 125.03 (1) (b) and 125.545 (6) (b) of the statutes,
20as created by this act, to the legislative council staff under section 227.15 (1) of the
21statutes no later than July 1, 2008.
SB485-SSA1,28,922 (b) Using the emergency rules procedure under section 227.24 of the statutes,
23the department of revenue shall promulgate the rules required under sections
24125.03 (1) (b) and 125.545 (6) (b) of the statutes, as created by this act, for purposes
25of implementing this act, for the period before the effective date of the rules

1submitted under paragraph (a ). The department of revenue shall promulgate these
2emergency rules no later than July 1, 2008. Notwithstanding section 227.24 (1) (c)
3and (2) of the statutes, these emergency rules may remain in effect until July 1, 2010,
4or the date on which permanent rules take effect, whichever is sooner.
5Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the department of
6revenue is not required to provide evidence that promulgating a rule under this
7paragraph as an emergency rule is necessary for the preservation of the public peace,
8health, safety, or welfare and is not required to provide a finding of emergency for a
9rule promulgated under this paragraph.
SB485-SSA1, s. 51 10Section 51. Effective dates. This act takes effect on October 1, 2008, except
11as follows:
SB485-SSA1,28,1212 (1) Section 50 (2 ) of this act takes effect on July 1, 2008.
SB485-SSA1,28,1313 (2) Section 50 (4 ) of this act takes effect on the day after publication.
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