AB795-ASA1, s. 16 8Section 16. 125.52 (8) of the statutes is repealed.
AB795-ASA1, s. 17 9Section 17. 125.53 (1) of the statutes is amended to read:
AB795-ASA1,11,210 125.53 (1) The department shall issue only to a manufacturing winery in this
11state that holds a valid certificate issued under s. 73.03 (50) a winery permit
12authorizing the manufacture and bottling of wine on the premises covered by the
13permit for sale at wholesale to other licensees or permittees to wholesalers holding
14a permit under s. 125.54. A winery permit also authorizes the permittee to, on the
15winery premises and without obtaining a rectifier's permit, possess intoxicating
16liquor and mix or blend intoxicating liquor to produce wine sold to wholesalers
17holding a permit under s. 125.54
. A permittee winery holding a permit under this
18section may offer on the premises taste samples of wine manufactured on the
19premises to persons who have attained the legal drinking age. A permittee under
20this section may also have either a one "Class A" license or one "Class B" license,
21but not both. The "Class A" license or "Class B" license may either be issued for the
22winery premises or for real estate owned or leased by the winery.
If a "Class A" or
23"Class B" liquor license has also been issued to the winery, the winery may provide
24wine manufactured, mixed, or blended on the winery premises directly to the "Class

1A" or "Class B" premises and
may offer the taste samples on the "Class A" or "Class
2B" premises.
AB795-ASA1, s. 18 3Section 18. 125.53 (3) of the statutes is repealed.
AB795-ASA1, s. 19 4Section 19. 125.535 of the statutes is created to read:
AB795-ASA1,11,9 5125.535 Direct wine shippers' permits. (1) Authorized activities. The
6department shall issue direct wine shippers' permits authorizing the permittee to
7ship wine directly to an individual in this state who is of the legal drinking age, who
8acknowledges receipt of the wine shipped, and who is not intoxicated at the time of
9delivery.
AB795-ASA1,11,12 10(2) Annual permit fee. The department may, by rule, establish an annual fee,
11not to exceed $100, for each permit issued under this section. All fees collected under
12this subsection shall be credited to the appropriation account under s. 20.566 (1) (ha).
AB795-ASA1,11,15 13(3) Persons eligible. (a) A direct wine shipper's permit may be issued under
14this section to any person that manufactures and bottles wine on premises covered
15by any of the following:
AB795-ASA1,11,1616 1. A manufacturer's or rectifier's permit under s. 125.52.
AB795-ASA1,11,1717 2. A winery permit under s. 125.53.
AB795-ASA1,11,1918 3. A winery license, permit, or other authorization issued to the winery by any
19state from which the winery will ship wine into this state.
AB795-ASA1,11,20204. A federal basic permit for a winery under 27 USC 203 and 204.
AB795-ASA1,11,2221 (b) A winery located outside of this state is eligible for a direct wine shipper's
22permit under par. (a) 3. or 4. if all of the following apply:
AB795-ASA1,11,2423 1. The winery holds a valid business tax registration certificate issued under
24s. 73.03 (50).
AB795-ASA1,12,4
12. The winery submits to the department, with any initial application or
2renewal for a certificate under s. 73.03 (50) or a permit under par. (a) 3. or 4., a copy
3of any current license, permit, or authorization issued to the winery by the state from
4which the winery will ship wine into this state or the winery's federal basic permit.
AB795-ASA1,12,135 (c) Notwithstanding s. 125.04 (5) (a), natural persons obtaining direct wine
6shippers' permits are not required to be residents of this state. Notwithstanding s.
7125.04 (5) (a) 5., a person is not required to complete a responsible beverage server
8training course to be eligible for a permit under this section. Corporations and
9limited liability companies obtaining direct wine shippers' permits are subject to s.
10125.04 (6) and any other person, including any natural person or cooperative,
11obtaining a direct wine shipper's permit shall appoint an agent, and be subject to all
12provisions of s. 125.04 (6), in the same manner applicable to corporations and limited
13liability companies.
AB795-ASA1,12,16 14(4) Labels. Containers of wine shipped to an individual in this state under this
15section shall be clearly labeled to indicate that the package may not be delivered to
16an underage person or to an intoxicated person.
AB795-ASA1,12,18 17(5) Restrictions. No individual may resell, or use for a commercial purpose,
18wine received by the individual that is shipped under authority of this section.
AB795-ASA1,12,23 19(6) Annual limit. No individual in this state may receive more than 108 liters
20of wine annually shipped under authority of this section. Each individual shall be
21responsible for compliance with this annual limit. An individual who violates this
22annual limit is subject to s. 125.11 (1). This subsection does not apply to purchases
23made under a permit issued under s. 125.61.
AB795-ASA1, s. 20 24Section 20. 125.54 (1) of the statutes is amended to read:
AB795-ASA1,13,10
1125.54 (1) Authorized activities. The department shall issue wholesalers'
2permits authorizing the permittee to sell, from the premises described in the permit,
3intoxicating liquor at wholesale from the premises described in the permit. Except
4as provided under s. 125.69 (1) (b) 3., the
to retailers and wholesalers, as well as to
5manufacturers, rectifiers, and wineries for production purposes. The
permittee may
6not sell intoxicating liquor for consumption on the premises. If a wholesale permit
7is issued to a brewery that holds a "Class B" license, the permit shall authorize the
8wholesale sale of wine only.
Possession of a permit under this section does not
9authorize the permittee to sell tax-free intoxicating liquor and wine brought into
10this state under s. 139.03 (5).
AB795-ASA1, s. 21 11Section 21. 125.54 (7) (e) of the statutes is created to read:
AB795-ASA1,13,1312 125.54 (7) (e) This subsection does not apply to a cooperative wholesaler under
13s. 125.545.
AB795-ASA1, s. 22 14Section 22. 125.54 (8) of the statutes is created to read:
AB795-ASA1,13,1915 125.54 (8) Duty to work in good faith. Each wholesaler has an obligation to
16negotiate in good faith with any manufacturer, rectifier, or winery that seeks to sell
17its products in this state through the wholesaler. To this end, all wholesalers shall
18work diligently to ensure that distribution channels are available for the sale of
19intoxicating liquor products through wholesalers to retailers in this state.
AB795-ASA1, s. 23 20Section 23. 125.545 of the statutes is created to read:
AB795-ASA1,13,22 21125.545 Small winery cooperative wholesalers. (1) Definitions. In this
22section:
AB795-ASA1,13,2523 (a) "Member" means a small winery that meets the requirements established
24under this section for membership in a cooperative wholesaler and that has been
25qualified and accepted for membership in a cooperative wholesaler.
AB795-ASA1,14,2
1(b) "Out-of-state winery" means a winery that is located in a state other than
2this state and that holds a valid direct shipper's permit issued under s. 125.535.
AB795-ASA1,14,43 (c) "Retailer" means any person holding a "Class A", "Class B", or "Class C"
4license or "Class B" permit issued under s. 125.51.
AB795-ASA1,14,65 (d) "Small winery" means any winery that produces and bottles less than
625,000 gallons of wine in a calendar year.
AB795-ASA1,14,87 (e) "Small winery cooperative wholesaler" or "cooperative wholesaler" means
8an entity established under this section.
AB795-ASA1,14,109 (f) "Wisconsin winery" means a winery operating under a permit issued under
10s. 125.53.
AB795-ASA1,14,17 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.
AB795-ASA1,14,2018 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.
AB795-ASA1,14,2221 3. A small winery may become a member of a cooperative wholesaler only if all
22of the following apply:
AB795-ASA1,14,2323 a. The small winery holds a direct shipper's permit under s. 125.535.
AB795-ASA1,14,2524 b. The small winery is certified by the department under sub. (6) (a) as a small
25winery.
AB795-ASA1,15,6
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.
AB795-ASA1,15,117 (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.
AB795-ASA1,15,19 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.
AB795-ASA1,15,2520 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.
AB795-ASA1,16,2
13. No cooperative wholesaler may operate in this state without a wholesaler's
2permit.
AB795-ASA1,16,73 (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.
AB795-ASA1,16,148 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.
AB795-ASA1,16,2015 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.
AB795-ASA1,16,2421 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.
AB795-ASA1,17,5
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.
AB795-ASA1,17,10 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.
AB795-ASA1,18,6 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.
AB795-ASA1,18,117 (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.
AB795-ASA1,18,14 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.
AB795-ASA1,18,2215 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.
AB795-ASA1,18,2423 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.
AB795-ASA1,19,3
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.
AB795-ASA1,19,54 (b) The department shall promulgate rules to administer and enforce the
5requirements under this section.
AB795-ASA1,19,9 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).
AB795-ASA1,19,1310 (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).
AB795-ASA1, s. 24 14Section 24. 125.55 (1) (intro.) and (a) of the statutes are consolidated,
15renumbered 125.55 (1) and amended to read:
AB795-ASA1,19,1716 125.55 (1) The department may issue the following combination permits: (a)
17A
a combination manufacturer's and rectifier's permit.
AB795-ASA1, s. 25 18Section 25. 125.55 (1) (b) of the statutes is repealed.
AB795-ASA1, s. 26 19Section 26. 125.55 (2) of the statutes is amended to read:
AB795-ASA1,19,2120 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.
AB795-ASA1, s. 27 22Section 27. 125.58 (1) of the statutes is amended to read:
AB795-ASA1,20,1623 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.
AB795-ASA1, s. 28 17Section 28. 125.58 (4) (a) (intro.) of the statutes is renumbered 125.58 (4) and
18amended to read:
AB795-ASA1,20,2119 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.
AB795-ASA1, s. 29 22Section 29. 125.58 (4) (a) 1. to 4. of the statutes are repealed.
AB795-ASA1, s. 30 23Section 30. 125.58 (4) (b) of the statutes is repealed.
AB795-ASA1, s. 31 24Section 31. 125.65 (8) of the statutes is amended to read:
AB795-ASA1,21,3
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.
AB795-ASA1, s. 32 4Section 32. 125.68 (10) (a) of the statutes is amended to read:
AB795-ASA1,21,105 125.68 (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
.
AB795-ASA1, s. 33 11Section 33. 125.68 (10) (b) of the statutes is amended to read:
AB795-ASA1,21,1912 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.
AB795-ASA1, s. 34 20Section 34. 125.68 (10) (bm) of the statutes is repealed.
AB795-ASA1, s. 35 21Section 35. 125.68 (10) (bs) of the statutes is repealed.
AB795-ASA1, s. 36 22Section 36. 125.68 (10) (c) of the statutes is repealed.
AB795-ASA1, s. 37 23Section 37. 125.69 (1) (a) of the statutes is amended to read:
AB795-ASA1,22,424 125.69 (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.
AB795-ASA1, s. 38 5Section 38. 125.69 (1) (b) 1. of the statutes is amended to read:
AB795-ASA1,22,126 125.69 (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.
AB795-ASA1, s. 39 13Section 39. 125.69 (1) (b) 2. and 3. of the statutes are repealed.
AB795-ASA1, s. 40 14Section 40. 125.69 (1) (c) (intro.) of the statutes is renumbered 125.69 (1) (c)
15and amended to read:
AB795-ASA1,22,2316 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.
AB795-ASA1, s. 41 24Section 41. 125.69 (1) (c) 1. to 3. of the statutes are repealed.
AB795-ASA1, s. 42 25Section 42. 125.69 (4) (c) of the statutes is repealed.
AB795-ASA1, s. 43
1Section 43. 125.69 (6) (a) of the statutes is amended to read:
AB795-ASA1,23,52 125.69 (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.
Loading...
Loading...