SB332,125,84
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.
SB332,220
9Section 220
. 125.54 (7) (a) 2. of the statutes is amended to read:
SB332,125,1610
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.
SB332,221
17Section 221
. 125.54 (7) (c) 3. of the statutes is amended to read:
SB332,125,2018
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.
SB332,222
21Section 222
. 125.54 (7) (d) of the statutes is amended to read:
SB332,126,622
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.
SB332,223
7Section
223. 125.545 (title) of the statutes is amended to read:
SB332,126,8
8125.545 (title)
Small winery cooperative wholesalers.
SB332,224
9Section
224. 125.545 (1) (a) of the statutes is amended to read:
SB332,126,1310
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.
SB332,225
14Section
225. 125.545 (1) (ar) of the statutes is created to read:
SB332,126,1615
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.
SB332,226
17Section
226. 125.545 (1) (cm) of the statutes is created to read:
SB332,126,2018
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.
SB332,227
21Section
227. 125.545 (1) (d) of the statutes is amended to read:
SB332,126,2322
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.
SB332,228
24Section
228. 125.545 (1) (e) of the statutes is amended to read:
SB332,127,2
1125.545
(1) (e) “Small
winery cooperative wholesaler" or “cooperative
2wholesaler" means an entity established under this section.
SB332,229
3Section
229. 125.545 (1) (em) of the statutes is created to read:
SB332,127,54
125.545
(1) (em) “Wisconsin manufacturer" means a manufacturer or rectifier
5operating under a permit issued under s. 125.52.
SB332,230
6Section
230. 125.545 (2) (a) 1. of the statutes is amended to read:
SB332,127,147
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.
SB332,231
15Section 231
. 125.545 (2) (a) 3. b. of the statutes is amended to read:
SB332,127,1716
125.545
(2) (a) 3. b. The small winery is certified by the
department division 17under sub. (6) (a) as a small winery.
SB332,232
18Section
232. 125.545 (2) (a) 4. of the statutes is created to read:
SB332,127,2119
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.
SB332,233
22Section
233. 125.545 (2) (b) of the statutes is amended to read:
SB332,128,423
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.
SB332,234
5Section
234. 125.545 (2) (c) of the statutes is amended to read:
SB332,128,116
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.
SB332,235
12Section 235
. 125.545 (3) (a) 1. of the statutes is amended to read:
SB332,128,2013
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.
SB332,236
21Section
236. 125.545 (3) (a) 2. of the statutes is amended to read:
SB332,129,322
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.
SB332,237
4Section
237. 125.545 (3) (a) 2m. of the statutes is created to read:
SB332,129,125
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.
SB332,238
13Section
238. 125.545 (3) (b) of the statutes is amended to read:
SB332,129,1814
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.
SB332,130,219
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.
SB332,130,93
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.
SB332,130,1410
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.
SB332,239
15Section
239. 125.545 (3) (c) of the statutes is amended to read:
SB332,130,2116
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.
SB332,240
22Section
240. 125.545 (4) of the statutes is amended to read:
SB332,131,223
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.
SB332,241
3Section 241
. 125.545 (5) of the statutes is amended to read:
SB332,131,84
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.
SB332,242
9Section 242
. 125.545 (6) (title) and (a) 1. and 2. of the statutes are amended
10to read:
SB332,131,1111
125.545
(6) (title)
Department Division certification and rule making.
SB332,131,1412
(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.
SB332,131,2215
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.
SB332,243
23Section
243. 125.545 (6) (a) 2m. of the statutes is created to read:
SB332,132,624
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.
SB332,244
7Section
244. 125.545 (6) (a) 3. of the statutes is amended to read:
SB332,132,108
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.
SB332,245
11Section
245. 125.545 (6) (a) 3m. of the statutes is created to read:
SB332,132,1412
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.
SB332,246
15Section
246. 125.545 (6) (a) 4. of the statutes is amended to read:
SB332,132,1916
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.
SB332,247
20Section
247. 125.545 (6) (b) of the statutes is amended to read:
SB332,132,2221
125.545
(6) (b) The
department
division shall promulgate rules to administer
22and enforce the requirements under this section.
SB332,248
23Section
248. 125.545 (7) of the statutes is amended to read:
SB332,133,224
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).
SB332,133,73
(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).
SB332,249
8Section 249
. 125.55 (1) of the statutes is amended to read:
SB332,133,109
125.55
(1) The
department division may issue a combination manufacturer's
10and rectifier's permit.
SB332,250
11Section 250
. 125.56 (2) (a) of the statutes is amended to read:
SB332,133,1612
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.
SB332,251
17Section 251
. 125.56 (2) (c) of the statutes is amended to read:
SB332,133,2018
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.
SB332,252
21Section 252
. 125.56 (2) (d) of the statutes is amended to read:
SB332,133,2322
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).
SB332,253
24Section 253
. 125.58 (1) of the statutes is amended to read:
SB332,134,18
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.
SB332,254
19Section
254. 125.58 (2) of the statutes is renumbered 125.58 (2) (a).
SB332,255
20Section
255. 125.58 (2) (b) and (c) of the statutes are created to read:
SB332,135,621
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.
SB332,135,137
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.
SB332,135,1814
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.
SB332,135,2019
(c) The application for a permit under this section shall include a provision that
20the permittee agrees to do all of the following:
SB332,135,2221
1. File reports, provide records, and allow inspections and examinations to the
22extent provided in s. 125.025 and ch. 139.
SB332,135,2423
2. Pay the expenses reasonably attributable to inspections and examinations
24made by the division at the premises of the permittee located outside this state.
SB332,136,2
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.
SB332,256
3Section
256. 125.58 (5) of the statutes is created to read:
SB332,136,64
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.
SB332,257
7Section 257
. 125.60 (1) of the statutes is amended to read:
SB332,136,128
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.
SB332,258
13Section 258
. 125.61 (1) of the statutes is amended to read: