AB304,123,1918 (e) The application for a permit under this section shall include a provision that
19the permittee agrees to do all of the following:
AB304,123,2120 1. File reports, provide records, and allow inspections and examinations to the
21extent provided in s. 125.025 and ch. 139.
AB304,123,2322 2. Pay the expenses reasonably attributable to inspections and examinations
23made by the division at any premises of the permittee located outside this state.
AB304,123,2524 3. Accept service of process and consent to jurisdiction in any proceeding in this
25state to enforce the provisions of this chapter or ch. 139.
AB304,215
1Section 215. 125.535 (7) of the statutes is created to read:
AB304,124,42 125.535 (7) Shipments through fulfillment house; common carriers. (a) A
3permittee under this section may arrange with a fulfillment house to ship wine on
4the permittee's behalf only if the fulfillment house holds a permit under s. 125.23.
AB304,124,65 (b) All containers of wine shipped directly to an individual in this state shall
6be shipped using a common carrier holding a permit issued under s. 125.22.
AB304,216 7Section 216 . 125.54 (1) of the statutes is amended to read:
AB304,124,148 125.54 (1) Authorized activities. The department division shall issue
9wholesalers' permits authorizing the permittee to sell, from the premises described
10in the permit, intoxicating liquor at wholesale to retailers and wholesalers, as well
11as to manufacturers, rectifiers, and wineries for production purposes. The permittee
12may not sell intoxicating liquor for consumption on the premises. Possession of a
13permit under this section does not authorize the permittee to sell tax-free
14intoxicating liquor and wine brought into this state under s. 139.03 (5).
AB304,217 15Section 217. 125.54 (3) of the statutes is amended to read:
AB304,124,1916 125.54 (3) Taste samples on “ Class A" retail premises. Wholesalers holding
17a permit issued under this section, employees of such wholesalers, and individuals
18representing such wholesalers may not assist or participate in providing taste
19samples under s. 125.06 (13) (a) or 125.51 (2) (am) or 125.69 (9).
AB304,218 20Section 218 . 125.54 (5) of the statutes is amended to read:
AB304,125,221 125.54 (5) Sales area. No wholesaler may sell any intoxicating liquor before
22filing with the department division a written statement that the permittee is a
23distributor of a particular brand in this state, or an area of this state, and that the
24sales of that brand by the permittee and anyone purchasing from the permittee will

1be limited to the area specified. The permittee shall notify the department division
2of any change in the area within 7 days of the effective date of the change.
AB304,219 3Section 219. 125.54 (6) of the statutes is amended to read:
AB304,125,84 125.54 (6) Multiple permits. Not more than 2 Multiple wholesalers' permits
5may be issued to any one person. In each application for a wholesaler's permit, the
6applicant shall state that whether application has not been made for more than one
7any other wholesaler's permit and shall identify any other wholesaler's permit held
8by the applicant
.
AB304,220 9Section 220 . 125.54 (7) (a) 2. of the statutes is amended to read:
AB304,125,1610 125.54 (7) (a) 2. A permittee under this section shall annually sell and deliver
11intoxicating liquor to at least 10 retail licensees or permittees that do not have any
12direct or indirect
an interest in each other or in the permittee under this section. The
13department division shall not issue a permit under this section unless the applicant
14represents to the department division an intention to satisfy this requirement, and
15shall not renew a permit issued under this section unless the permittee
16demonstrates that this requirement has been satisfied.
AB304,221 17Section 221 . 125.54 (7) (c) 3. of the statutes is amended to read:
AB304,125,2018 125.54 (7) (c) 3. This paragraph shall not affect the authority of any
19municipality or the department division to revoke, suspend, or refuse to renew or
20issue a license or permit under s. 125.12.
AB304,222 21Section 222 . 125.54 (7) (d) of the statutes is amended to read:
AB304,126,622 125.54 (7) (d) The department division shall promulgate rules to administer
23and enforce the requirements under this subsection. The rules shall ensure
24coordination between the department's division's issuance and renewal of permits
25under this section and its enforcement of the requirements of this subsection, and

1shall require that all applications for issuance or renewal of permits under this
2section be processed by department division personnel generally familiar with
3activities of intoxicating liquor wholesalers. The department division shall establish
4by rule minimum requirements for warehouse facilities on premises described in
5permits issued under this section and for periodic site inspections by the department
6division of such warehouse facilities.
AB304,223 7Section 223. 125.545 (title) of the statutes is amended to read:
AB304,126,8 8125.545 (title) Small winery cooperative wholesalers.
AB304,224 9Section 224. 125.545 (1) (a) of the statutes is amended to read:
AB304,126,1310 125.545 (1) (a) “Member" means a small winery or small manufacturer that
11meets the requirements established under this section for membership in a
12cooperative wholesaler and that has been qualified and accepted for membership in
13a cooperative wholesaler.
AB304,225 14Section 225. 125.545 (1) (ar) of the statutes is created to read:
AB304,126,1615 125.545 (1) (ar) “Out-of-state manufacturer" means a manufacturer or
16rectifier of intoxicating liquor that is located in a state other than this state.
AB304,226 17Section 226. 125.545 (1) (cm) of the statutes is created to read:
AB304,126,2018 125.545 (1) (cm) “Small manufacturer" means any manufacturer or rectifier
19that produces and bottles less than 50,000 gallons of intoxicating liquor other than
20wine in a calendar year.
AB304,227 21Section 227. 125.545 (1) (d) of the statutes is amended to read:
AB304,126,2322 125.545 (1) (d) “Small winery" means any winery that produces and bottles less
23than 25,000 50,000 gallons of wine in a calendar year.
AB304,228 24Section 228. 125.545 (1) (e) of the statutes is amended to read:
AB304,127,2
1125.545 (1) (e) “Small winery cooperative wholesaler" or “cooperative
2wholesaler" means an entity established under this section.
AB304,229 3Section 229. 125.545 (1) (em) of the statutes is created to read:
AB304,127,54 125.545 (1) (em) “Wisconsin manufacturer" means a manufacturer or rectifier
5operating under a permit issued under s. 125.52.
AB304,230 6Section 230. 125.545 (2) (a) 1. of the statutes is amended to read:
AB304,127,147 125.545 (2) (a) 1. A cooperative wholesaler may only be created as provided
8under s. 185.043 (2) and this section. Each cooperative wholesaler operating under
9authority of this section shall be organized under ch. 185 but shall be subject to the
10limitations on such cooperatives imposed by this section. Subject to subd. subds. 3.
11and 4., only small wineries and small manufacturers may be members of a
12cooperative wholesaler. The principal purpose of a cooperative wholesaler shall be
13to sell and distribute wine intoxicating liquor manufactured, blended, or mixed, and
14also bottled, by its members.
AB304,231 15Section 231 . 125.545 (2) (a) 3. b. of the statutes is amended to read:
AB304,127,1716 125.545 (2) (a) 3. b. The small winery is certified by the department division
17under sub. (6) (a) as a small winery.
AB304,232 18Section 232. 125.545 (2) (a) 4. of the statutes is created to read:
AB304,127,2119 125.545 (2) (a) 4. A small manufacturer may become a member of a cooperative
20wholesaler only if the small manufacturer is certified by the division under sub. (6)
21(a) as a small manufacturer.
AB304,233 22Section 233. 125.545 (2) (b) of the statutes is amended to read:
AB304,128,423 125.545 (2) (b) In addition to the requirements specified in s. 185.31 for the
24board of directors of a cooperative wholesaler, a director representing a member that
25is a Wisconsin winery or Wisconsin manufacturer shall be either an owner or an

1employee of that Wisconsin winery or Wisconsin manufacturer. If any out-of-state
2winery or out-of-state manufacturer is a member of the cooperative wholesaler, at
3least one director shall be either an owner or an employee of an out-of-state winery
4or out-of-state manufacturer that is a member of the cooperative wholesaler.
AB304,234 5Section 234. 125.545 (2) (c) of the statutes is amended to read:
AB304,128,116 125.545 (2) (c) Notwithstanding any provision of ch. 185, a cooperative
7wholesaler may not employ any owner or employee of a member. However, an
8individual that is an owner or an employee of a member may act as a volunteer to
9assist that cooperative wholesaler in the sale and distribution of wine intoxicating
10liquor
to retailers and other wholesalers in the manner authorized under this
11section.
AB304,235 12Section 235 . 125.545 (3) (a) 1. of the statutes is amended to read:
AB304,128,2013 125.545 (3) (a) 1. Within 7 days after filing its articles of incorporation under
14ch. 185, a cooperative wholesaler shall apply to the department division for a
15wholesaler's permit under s. 125.54. The provisions of s. 125.04 (5) (c) and (6) shall
16apply to a cooperative wholesaler as if the cooperative wholesaler were a corporation
17or a limited liability company and, for each of these provisions, the department
18division shall determine whether the cooperative wholesaler is most similar to a
19corporation or a limited liability company in the context of that provision and apply
20that provision to the cooperative wholesaler accordingly.
AB304,236 21Section 236. 125.545 (3) (a) 2. of the statutes is amended to read:
AB304,129,322 125.545 (3) (a) 2. Notwithstanding s. 125.54 (6), the department division may
23issue not more than one wholesaler's permit to any cooperative wholesaler. The
24department division may not issue more than a total of 6 wholesalers' permits to
25cooperative wholesalers in this state. The department Except as provided in subd.

12m., the division
may not issue any new wholesaler's permit to a cooperative
2wholesaler after December 31, 2008, but may renew wholesalers' permits that were
3initially issued to cooperative wholesalers prior to that date.
AB304,237 4Section 237. 125.545 (3) (a) 2m. of the statutes is created to read:
AB304,129,125 125.545 (3) (a) 2m. The division may issue new wholesalers' permits to
6cooperative wholesalers after the effective date of this subdivision .... [LRB inserts
7date], but not later than the first day of the 7th month beginning after the effective
8date of this subdivision .... [LRB inserts date], and may renew wholesalers' permits
9that were initially issued to cooperative wholesalers during this period. The division
10may not issue new wholesalers' permits under this subdivision that cause the total
11number of wholesalers' permits issued to cooperative wholesalers in this state to
12exceed 6.
AB304,238 13Section 238. 125.545 (3) (b) of the statutes is amended to read:
AB304,129,1814 125.545 (3) (b) 1. Notwithstanding s. 125.54 (1), and except as provided in subd.
153., a cooperative wholesaler issued a wholesaler's permit under par. (a) is authorized
16to sell and distribute only wine intoxicating liquor. Except as provided in subd. 3.,
17a cooperative wholesaler may not sell or distribute any alcohol beverages, or any
18other product, except wine intoxicating liquor.
AB304,130,219 2. A cooperative wholesaler shall purchase on consignment wine intoxicating
20liquor
from its members to be resold to retailers and other wholesalers.
21Notwithstanding s. 125.69 (5), a cooperative wholesaler may not purchase wine
22intoxicating liquor from any person other than a member. A cooperative wholesaler
23may not resell or distribute wine intoxicating liquor unless it has been purchased on
24consignment
from a member. Notwithstanding s. 125.54 (1), a cooperative

1wholesaler may not sell or distribute wine intoxicating liquor except to a retailer or
2to a wholesaler holding a permit under s. 125.54.
AB304,130,93 3. A cooperative wholesaler may purchase ancillary wine industry trade goods
4such as bottles, corks, and other supplies used by wineries or manufacturers in the
5bottling and sale of wine intoxicating liquor if such trade goods do not include any
6alcohol beverages. Any wine industry trade goods purchased by a cooperative
7wholesaler under this subdivision may be offered for resale to the cooperative
8wholesaler's members or to any winery or manufacturer that was formerly a member
9of the cooperative wholesaler.
AB304,130,1410 4. A cooperative wholesaler shall work with all of its members on evenhanded
11terms. Any preferential treatment by a cooperative wholesaler for the benefit of a
12member that is a Wisconsin winery or Wisconsin manufacturer, and any
13discrimination against a member that is an out-of-state winery or out-of-state
14manufacturer
, is prohibited.
AB304,239 15Section 239. 125.545 (3) (c) of the statutes is amended to read:
AB304,130,2116 125.545 (3) (c) Neither a cooperative wholesaler nor its members are subject
17to any restriction on dealings under s. 125.69 (1) between wholesalers and wineries
18or manufacturers. Except as provided in s. 125.54 (7) (e) and as otherwise provided
19in this section, all provisions of this chapter and ch. 139 that apply to a wholesaler
20issued a permit under s. 125.54 also apply to a cooperative wholesaler issued a permit
21under s. 125.54.
AB304,240 22Section 240. 125.545 (4) of the statutes is amended to read:
AB304,131,223 125.545 (4) Exclusive distribution. A member of a cooperative wholesaler
24may make its wine intoxicating liquor available for purchase by a retailer or another
25wholesaler only through the cooperative wholesaler of which it is a member. A

1member of a cooperative wholesaler may not sell its wine intoxicating liquor directly
2to any other wholesaler or directly to a retailer.
AB304,241 3Section 241 . 125.545 (5) of the statutes is amended to read:
AB304,131,84 125.545 (5) Biennial reports. With each application for renewal of a
5wholesaler's permit issued to a cooperative wholesaler, each cooperative wholesaler
6shall file with the department division, in the form and manner prescribed by the
7department division by rule, a biennial report that includes detailed information on
8its members, board of directors, and sale and distribution activities.
AB304,242 9Section 242 . 125.545 (6) (title) and (a) 1. and 2. of the statutes are amended
10to read:
AB304,131,1111 125.545 (6) (title) Department Division certification and rule making.
AB304,131,1412 (a) 1. The department division shall, upon application, certify eligible
13applicants as small wineries or small manufacturers and renew prior certifications
14of eligible applicants as small wineries or small manufacturers.
AB304,131,2215 2. Any winery seeking to become a member of, or to maintain its membership
16in, a cooperative wholesaler may apply to the department division for certification
17as a small winery. If the winery meets the definition of a small winery under this
18section, satisfies the requirement under sub. (2) (a) 3. a., and submits any other
19information that the department division determines is necessary to certify that the
20winery is operating as a small winery and is eligible for membership in a cooperative
21wholesaler, the department division shall certify the winery as a small winery. This
22certification shall remain valid for one year.
AB304,243 23Section 243. 125.545 (6) (a) 2m. of the statutes is created to read:
AB304,132,624 125.545 (6) (a) 2m. Any manufacturer seeking to become a member of, or to
25maintain its membership in, a cooperative wholesaler may apply to the division for

1certification as a small manufacturer. If the manufacturer meets the definition of
2a small manufacturer under this section and submits any other information that the
3division determines is necessary to certify that the manufacturer is operating as a
4small manufacturer and is eligible for membership in a cooperative wholesaler, the
5division shall certify the manufacturer as a small manufacturer. This certification
6shall remain valid for one year.
AB304,244 7Section 244. 125.545 (6) (a) 3. of the statutes is amended to read:
AB304,132,108 125.545 (6) (a) 3. In certifying any winery under subd. 2., the department
9division shall classify the winery as either a Wisconsin winery or an out-of-state
10winery.
AB304,245 11Section 245. 125.545 (6) (a) 3m. of the statutes is created to read:
AB304,132,1412 125.545 (6) (a) 3m. In certifying any manufacturer under subd. 2m., the
13division shall classify the manufacturer as either a Wisconsin manufacturer or an
14out-of-state manufacturer.
AB304,246 15Section 246. 125.545 (6) (a) 4. of the statutes is amended to read:
AB304,132,1916 125.545 (6) (a) 4. The department division shall refuse to certify under this
17paragraph any winery or manufacturer that cannot demonstrate it holds all
18necessary permits for its operations or that the department division finds is
19otherwise not in full compliance with the laws of this state.
AB304,247 20Section 247. 125.545 (6) (b) of the statutes is amended to read:
AB304,132,2221 125.545 (6) (b) The department division shall promulgate rules to administer
22and enforce the requirements under this section.
AB304,248 23Section 248. 125.545 (7) of the statutes is amended to read:
AB304,133,224 125.545 (7) Penalties. (a) Any winery or manufacturer that sells or distributes
25its wine intoxicating liquor directly to a retailer, rather than through a wholesaler

1or cooperative wholesaler, is subject to a fine of not more than $10,000 and revocation
2of all of its permits by the department division under s. 125.12 (5).
AB304,133,73 (b) Any cooperative wholesaler that provides preferential treatment to a
4Wisconsin winery or Wisconsin manufacturer or discriminates against an
5out-of-state winery or out-of-state manufacturer is subject to a fine of not more
6than $10,000 and revocation of its wholesaler's permit by the department division
7under s. 125.12 (5).
AB304,249 8Section 249 . 125.55 (1) of the statutes is amended to read:
AB304,133,109 125.55 (1) The department division may issue a combination manufacturer's
10and rectifier's permit.
AB304,250 11Section 250 . 125.56 (2) (a) of the statutes is amended to read:
AB304,133,1612 125.56 (2) (a) The department division shall issue sacramental wine permits
13to organized religious bodies authorizing them to purchase for their own use
14sacramental wine from any permittee under s. 125.52 (1), 125.53 or 125.54. A permit
15under this subsection does not authorize the resale of sacramental wine by the
16permittee.
AB304,251 17Section 251 . 125.56 (2) (c) of the statutes is amended to read:
AB304,133,2018 125.56 (2) (c) Shipments of sacramental wine shall be conspicuously labeled
19“for sacramental purposes" and shall meet any other requirements the department
20division prescribes by rule.
AB304,252 21Section 252 . 125.56 (2) (d) of the statutes is amended to read:
AB304,133,2322 125.56 (2) (d) A sacramental wine permit shall be issued free of charge by the
23department division and is not subject to s. 125.04 (11) (a).
AB304,253 24Section 253 . 125.58 (1) of the statutes is amended to read:
AB304,134,18
1125.58 (1) The department division shall issue out-of-state shippers' permits
2which authorize persons located outside this state to sell or ship intoxicating liquor
3into this state. Except as provided under sub. subs. (4) and (5), intoxicating liquor
4may be shipped into this state only to a person holding a wholesaler's permit under
5s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a
6permit under this section, to a person holding a manufacturer's or rectifier's permit
7under s. 125.52 or a winery permit under s. 125.53. Except as provided under sub.
8subs. (4) and (5), a separate out-of-state shipper's permit is required for each
9location from which any intoxicating liquor is sold or shipped into this state,
10including the location from which the invoices are issued for the sales or shipments.
11Any person holding an out-of-state shipper's permit issued under this section may
12solicit orders for sales or shipments by the permittee without obtaining the sales
13solicitation permit required by s. 125.65, but every agent, salesperson or other
14representative who solicits orders for sales or shipments by an out-of-state shipper
15shall first obtain a permit for soliciting orders under s. 125.65. No holder of an
16out-of-state shipper's permit issued under this section may sell intoxicating liquor
17in this state or ship intoxicating liquor into this state unless the out-of-state shipper
18is the primary source of supply for that intoxicating liquor.
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