This bill allows certain wineries, manufacturers and rectifiers of intoxicating
liquor, and out-of-state liquor shippers to self-distribute their products to retailers.
Under current law, alcohol beverages are generally distributed to consumers
under a three-tier distribution system: the producer sells to a wholesaler; the
wholesaler sells to a retailer; and the retailer sells to a consumer. With limited
exceptions, a retail licensee may not purchase alcohol beverages from, or possess
alcohol beverages purchased from, any person other than a wholesaler.
Also under current law, the Department of Revenue issues permits to producers
of alcohol beverages. A manufacturer's permit or rectifier's permit issued by DOR
authorizes the permittee to, respectively, manufacture or rectify intoxicating liquor
and sell it to wholesalers. Intoxicating liquor includes distilled spirits and wine. A
winery permit issued by DOR authorizes the winery to manufacture wine for sale to
wholesalers. A winery may also hold a retail license authorizing the sale of wine and
the winery may provide wine made by the winery directly to its own retail licensed
premises without the wine first passing through a wholesaler. An out-of-state

liquor shipper's permit issued by DOR allows a manufacturer or rectifier of
intoxicating liquor located outside this state, or its exclusive agent, to ship
intoxicating liquor into this state to a wholesaler or to a manufacturer, rectifier, or
winery.
This bill allows a winery, manufacturer, rectifier, and out-of-state shipper to
distribute intoxicating liquor directly to retailers as follows:
1. A winery in this state that manufactures not more than 30,000 gallons of
wine per year may distribute directly to retailers up to 24,000 gallons of its own wine.
2. A manufacturer or rectifier in this state that manufactures or rectifies not
more than 10,000 proof gallons of intoxicating liquor per year may distribute directly
to retailers up to 8,000 proof gallons of its own intoxicating liquor. A proof gallon is
a unit of measure for distilled spirits equal to one gallon containing 50 percent
alcohol by volume.
3. An out-of-state shipper that is a winery located outside of this state and that
manufactures not more than 30,000 gallons of wine per year may ship into this state
directly to retailers up to 24,000 gallons of its own wine.
4. An out-of-state shipper that is a manufacturer or rectifier located outside
of this state and that manufactures or rectifies not more than 10,000 proof gallons
of intoxicating liquor per year may ship into this state directly to retailers up to 8,000
proof gallons of its own intoxicating liquor.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1035,1 1Section 1. 125.02 (15r) of the statutes is created to read:
AB1035,2,22 125.02 (15r) “Proof gallon" has the meaning given in 26 USC 5002 (a) (11).
AB1035,2 3Section 2 . 125.52 (1) (b) 3. of the statutes is created to read:
AB1035,3,24 125.52 (1) (b) 3. In addition to the authorization under subds. 1. and 2. and par.
5(a), a manufacturer or rectifier holding a permit under this section that
6manufactures or rectifies not more than 10,000 proof gallons of intoxicating liquor
7in a calendar year from all locations may, in a calendar year, sell and distribute
8directly to retailers from the manufacturer's or rectifier's premises, in original
9unopened packages or containers, not more than 8,000 proof gallons of intoxicating
10liquor manufactured or rectified on the manufacturer's or rectifier's premises.
11Intoxicating liquor sold or provided as taste samples under subd. 2. shall not be

1included in any calculation of the 8,000-proof gallon limitation under this
2subdivision.
AB1035,3 3Section 3 . 125.53 (3) of the statutes is created to read:
AB1035,3,104 125.53 (3) In addition to the authorization under sub. (1), a winery holding a
5permit under this section that manufactures not more than 30,000 gallons of wine
6in a calendar year from all locations may, in a calendar year, sell and distribute
7directly to retailers, in original unopened packages or containers, not more than
824,000 gallons of wine manufactured on the winery premises. Wine provided by the
9winery to its own “Class A” or “Class B” retail premises shall not be included in any
10calculation of the 24,000-gallon limitation under this subsection.
AB1035,4 11Section 4 . 125.545 (4) of the statutes is renumbered 125.545 (4) (a) and
12amended to read:
AB1035,3,1713 125.545 (4) (a) A Except as provided in par. (b), a member of a cooperative
14wholesaler may make its wine available for purchase by a retailer or another
15wholesaler only through the cooperative wholesaler of which it is a member. A
16Except as provided in par. (b), a member of a cooperative wholesaler may not sell its
17wine directly to any other wholesaler or directly to a retailer.
AB1035,5 18Section 5 . 125.545 (4) (b) of the statutes is created to read:
AB1035,3,2019 125.545 (4) (b) A member of a cooperative wholesaler may sell and distribute
20its wine directly to retailers as provided in s. 125.53 (3).
AB1035,6 21Section 6 . 125.545 (7) (a) of the statutes is amended to read:
AB1035,3,2522 125.545 (7) (a) Any Except as provided in sub. (4) (b), any winery that sells or
23distributes its wine directly to a retailer, rather than through a wholesaler or
24cooperative wholesaler, is subject to a fine of not more than $10,000 and revocation
25of all of its permits by the department under s. 125.12 (5).
AB1035,7
1Section 7. 125.58 (1) of the statutes is amended to read:
AB1035,4,192 125.58 (1) The department shall issue out-of-state shippers' permits which
3authorize persons located outside this state to sell or ship intoxicating liquor into this
4state. Except as provided under sub. subs. (4) and (5), intoxicating liquor may be
5shipped into this state only to a person holding a wholesaler's permit under s. 125.54
6or, if shipped from a manufacturer or rectifier in another state holding a permit
7under this section, to a person holding a manufacturer's or rectifier's permit under
8s. 125.52 or a winery permit under s. 125.53. Except as provided under sub. (4), a
9separate out-of-state shipper's permit is required for each location from which any
10intoxicating liquor is sold or shipped into this state, including the location from
11which the invoices are issued for the sales or shipments. Any person holding an
12out-of-state shipper's permit issued under this section may solicit orders for sales
13or shipments by the permittee without obtaining the sales solicitation permit
14required by s. 125.65, but every agent, salesperson or other representative who
15solicits orders for sales or shipments by an out-of-state shipper shall first obtain a
16permit for soliciting orders under s. 125.65. No holder of an out-of-state shipper's
17permit issued under this section may sell intoxicating liquor in this state or ship
18intoxicating liquor into this state unless the out-of-state shipper is the primary
19source of supply for that intoxicating liquor.
AB1035,8 20Section 8. 125.58 (5) of the statutes is created to read:
AB1035,4,2421 125.58 (5) (a) A winery located outside of this state that holds a permit under
22this section and manufactures not more than 30,000 gallons of wine in a calendar
23year from all locations may, in a calendar year, sell and ship into this state directly
24to retailers not more than 24,000 gallons of wine manufactured by the winery.
AB1035,5,5
1(b) A manufacturer or rectifier located outside of this state that holds a permit
2under this section and manufactures or rectifies not more than 10,000 proof gallons
3of intoxicating liquor in a calendar year from all locations may, in a calendar year,
4sell and ship into this state directly to retailers not more than 8,000 proof gallons of
5intoxicating liquor manufactured or rectified by the manufacturer or rectifier.
AB1035,9 6Section 9 . 125.69 (3) of the statutes is amended to read:
AB1035,5,147 125.69 (3) Volume discounts to campuses and retailers. A wholesaler of
8intoxicating liquor, a winery with respect to sales of wine authorized under s. 125.53
9(3), a manufacturer or rectifier with respect to sales of intoxicating liquor authorized
10under s. 125.52 (1) (b) 3., and an out-of-state shipper with respect to sales of
11intoxicating liquor authorized under s. 125.58 (5),
shall charge the same price to all
12campuses and retail licensees and permittees making purchases in similar
13quantities. Any discount offered on intoxicating liquor shall be delivered to the
14retailer in a single transaction and single delivery, and on a single invoice.
AB1035,10 15Section 10 . 125.69 (6) (a) of the statutes is amended to read:
AB1035,5,1916 125.69 (6) (a) No Except as provided in ss. 125.52 (1) (b) 3., 125.53 (3), and
17125.58 (5), no
campus or retail licensee or permittee may purchase intoxicating
18liquor from, or possess intoxicating liquor purchased from, any person other than a
19wholesaler holding a permit under this chapter for the sale of intoxicating liquor.
AB1035,5,2020 (End)
Loading...
Loading...