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.
AB304,254 19Section 254. 125.58 (2) of the statutes is renumbered 125.58 (2) (a).
AB304,255 20Section 255. 125.58 (2) (b) and (c) of the statutes are created to read:
AB304,135,621 125.58 (2) (b) 1. Unless the permittee or agent of the permittee appointed under
22s. 125.04 (6) is a resident of this state, or unless the permittee maintains a registered
23agent in this state under s. 180.0501, 180.1507, 183.0105, or 183.1007, a permittee
24under this section shall appoint and continually engage the services of an agent in
25this state to act as agent for the service of process on whom all processes, and any

1action or proceeding against the permittee concerning or arising out of the
2enforcement of any provision of this chapter or ch. 139, may be served in any manner
3authorized by law. That service shall constitute legal and valid service of process on
4the permittee. The permittee shall provide to the division, in the form and manner
5prescribed by the division, the name, address, phone number, and proof of the
6appointment and availability of the agent.
AB304,135,137 2. The permittee shall provide notice to the division 30 calendar days before
8termination of the authority of an agent under subd. 1. and shall provide proof to the
9satisfaction of the division of the appointment of a new agent no less than 5 calendar
10days before the termination of an existing agent appointment. In the event an agent
11terminates an agency appointment, the permittee shall notify the division of that
12termination within 5 calendar days and shall include proof to the satisfaction of the
13division of the appointment of a new agent.
AB304,135,1814 3. If a permittee fails to maintain an agent in this state after a permit is issued
15under this section, the permittee is considered to have appointed the department of
16financial institutions as the permittee's agent, and the permittee may be proceeded
17against in courts of this state by service of process upon the department of financial
18institutions.
AB304,135,2019 (c) The application for a permit under this section shall include a provision that
20the permittee agrees to do all of the following:
AB304,135,2221 1. File reports, provide records, and allow inspections and examinations to the
22extent provided in s. 125.025 and ch. 139.
AB304,135,2423 2. Pay the expenses reasonably attributable to inspections and examinations
24made by the division at the premises of the permittee located outside this state.
AB304,136,2
13. Accept service of process and consent to jurisdiction in any proceeding in this
2state to enforce the provisions of this chapter or ch. 139.
AB304,256 3Section 256. 125.58 (5) of the statutes is created to read:
AB304,136,64 125.58 (5) A fulfillment house located outside this state that holds a permit
5under s. 125.23 may ship wine into this state as provided in s. 125.23 and is not
6required to hold an out-of-state shipper's permit under this section.
AB304,257 7Section 257 . 125.60 (1) of the statutes is amended to read:
AB304,136,128 125.60 (1) The department division may issue a wholesale alcohol permit
9which authorizes the permittee to sell ethyl alcohol of 190 proof or more to persons
10holding permits or licenses issued under s. 125.61 or 125.62. Nothing in this section
11requires manufacturers, rectifiers and wholesalers holding permits issued under s.
12125.52 (1) or 125.54 to obtain a wholesale alcohol permit.
AB304,258 13Section 258 . 125.61 (1) of the statutes is amended to read:
AB304,136,1714 125.61 (1) The department division may issue a medicinal alcohol permit
15which authorizes the permittee to purchase and use alcohol for medicinal purposes
16only. The permit may be issued only to persons who prove to the department division
17that they use alcohol for medicinal purposes.
AB304,259 18Section 259 . 125.61 (3) of the statutes is amended to read:
AB304,136,2119 125.61 (3) Shipments of medicinal alcohol shall be conspicuously labeled “for
20medicinal purposes" and shall meet other requirements which the department
21division prescribes by rule.
AB304,260 22Section 260 . 125.61 (4) of the statutes is amended to read:
AB304,136,2423 125.61 (4) A medicinal permit shall be issued free of charge by the department
24division and is not subject to s. 125.04 (11) (a).
AB304,261 25Section 261 . 125.62 (1) of the statutes is amended to read:
AB304,137,4
1125.62 (1) The department division may issue an industrial alcohol permit
2which authorizes the permittee to purchase and use alcohol for industrial purposes
3only. Such permits may be issued only to persons who prove to the department
4division that they use alcohol for industrial purposes.
AB304,262 5Section 262 . 125.62 (3) of the statutes is amended to read:
AB304,137,86 125.62 (3) Shipments of industrial alcohol shall be conspicuously labeled “for
7industrial purposes" and shall meet other requirements which the department
8division prescribes by rule.
AB304,263 9Section 263 . 125.63 (1) of the statutes is amended to read:
AB304,137,1310 125.63 (1) The department division may issue an industrial wine permit which
11authorizes the purchase and use of wine for industrial purposes only. An industrial
12wine permit may be issued only to persons who prove to the department division that
13they use wine for industrial purposes.
AB304,264 14Section 264 . 125.63 (3) of the statutes is amended to read:
AB304,137,1715 125.63 (3) Shipments of industrial wine shall be conspicuously labeled “for
16industrial purposes" and shall meet other requirements which the department
17division prescribes by rule.
AB304,265 18Section 265 . 125.65 (1) of the statutes is amended to read:
AB304,137,2319 125.65 (1) The department division may issue a permit for wholesale sales for
20future delivery which authorizes the permittee to solicit orders, and to engage in the
21sale, of intoxicating liquor for delivery at a future date. A person holding a permit
22under this section may give a sample of a brand of intoxicating liquor to a “Class A"
23licensee who has not previously purchased that brand from the permittee.
AB304,266 24Section 266 . 125.65 (4) (intro.) of the statutes is amended to read:
AB304,138,2
1125.65 (4) (intro.) The department division shall require the following
2information in applications for permits under this section:
AB304,267 3Section 267 . 125.65 (4) (e) of the statutes is amended to read:
AB304,138,44 125.65 (4) (e) Any other information required by the department division.
AB304,268 5Section 268 . 125.65 (6) of the statutes is amended to read:
AB304,138,106 125.65 (6) Employers shall furnish the department division with the names of
7all employees engaged in activities requiring a permit under this section and shall
8notify the department division whenever an employee begins or terminates
9employment. Upon leaving employment, an employee shall submit his or her permit
10to the department division for cancellation.
AB304,269 11Section 269 . 125.65 (10) of the statutes is amended to read:
AB304,138,1412 125.65 (10) The department division may not require a fee for a permit under
13this section for an individual who is eligible for the veterans fee waiver program
14under s. 45.44.
AB304,270 15Section 270. 125.68 (2) of the statutes is amended to read:
AB304,139,1716 125.68 (2) Operators' licenses and permits; “Class A," “Class B," “Class C," and
17other premises.
Except as provided under ss. 125.07 (3) (a) 10. and 125.51 (10), no
18premises operated under a “Class A" or “Class C" license or under a “Class B" license
19or permit may be open for business, and no person who holds a brewer's permit,
20manufacturer's or rectifier's permit, or winery permit may allow the sale or provision
21of taste samples of intoxicating liquor on the brewery premises, manufacturing or
22rectifying premises as provided in s. 125.52 (1) (b) 2., winery premises, or any retail
23outlet operated by the brewer, manufacturer, rectifier, or winery under s. 125.29 (7),
24125.52 (4), or 125.53 (3),
unless there is upon the premises either the licensee or
25permittee, the agent named in the license or permit if the licensee or permittee is a

1corporation or limited liability company, or some person who has an operator's
2license or operator's permit and who is responsible for the acts of all persons selling
3or serving any intoxicating liquor to customers. An operator's license issued in
4respect to a vessel under s. 125.51 (5) (c) is valid outside the municipality that issues
5it. For the purpose of this subsection, any person holding a manager's license issued
6under s. 125.18 or any member of the licensee's or permittee's immediate family who
7has attained the age of 18 shall be considered the holder of an operator's license. No
8person, including a member of the licensee's or permittee's immediate family, other
9than the licensee, permittee, or agent may serve or sell alcohol beverages in any place
10operated under a “Class A" or “Class C" license or under a “Class B" license or permit,
11or serve or sell intoxicating liquor on brewery premises, manufacturing or rectifying
12premises, winery premises, or any retail outlet operated by a brewer, manufacturer,
13rectifier, or winery under s. 125.29 (7), 125.52 (4), or 125.53 (3),
unless he or she has
14an operator's license or operator's permit, is considered to have an operator's license
15under this subsection,
or is at least 18 years of age and is under the immediate
16supervision of the licensee, permittee, or agent or a person holding an operator's
17license or operator's permit, who is on the premises at the time of the service.
AB304,271 18Section 271. 125.68 (4) (c) 1. of the statutes is amended to read:
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