SB485: Bill Text

SB485,17,5 (6) Department certification and rule making. (a) 1. The department shall, upon application, certify eligible applicants as small wineries and renew prior certifications of eligible applicants as small wineries.

SB485,17,13 2. Any winery seeking to become a member of, or to maintain its membership in, a cooperative wholesaler may apply to the department for certification as a small winery. If the winery meets the definition of a small winery under this section, satisfies the requirement under sub. (2) (a) 3. a., and submits any other information that the department determines is necessary to certify that the winery is operating as a small winery and is eligible for membership in a cooperative wholesaler, the department shall certify the winery as a small winery. This certification shall remain valid for one year.

SB485,17,15 3. In certifying any winery under subd. 2., the department shall classify the winery as either a Wisconsin winery or an out-of-state winery.

SB485,17,18 4. The department shall refuse to certify under this paragraph any winery that cannot demonstrate it holds all necessary permits for its operations or that the department finds is otherwise not in full compliance with the laws of this state.

SB485,17,20 (b) The department shall promulgate rules to administer and enforce the requirements under this section.

SB485,17,24 (7) Penalties. (a) Any winery that sells or distributes its wine directly to a retailer, rather than through a wholesaler or cooperative wholesaler, is subject to a fine of not more than $10,000 and revocation of all of its permits by the department under s. 125.12 (5).

SB485,18,4 (b) Any cooperative wholesaler that provides preferential treatment to a Wisconsin winery or discriminates against an out-of-state winery is subject to a fine of not more than $10,000 and revocation of its wholesaler's permit by the department under s. 125.12 (5).

SB485, s. 20 Section 20. 125.55 (1) (intro.) and (a) of the statutes are consolidated, renumbered 125.55 (1) and amended to read:

SB485,18,8 125.55 (1) The department may issue the following combination permits: (a) A a combination manufacturer's and rectifier's permit.

SB485, s. 21 Section 21. 125.55 (1) (b) of the statutes is repealed.

SB485, s. 22 Section 22. 125.55 (2) of the statutes is amended to read:

SB485,18,12 125.55 (2) A combination manufacturer's and wholesaler's permit may not be issued. A combination rectifier's and wholesaler's permit may not be issued.

SB485, s. 23 Section 23. 125.58 (1) of the statutes is amended to read:

SB485,19,7 125.58 (1) The department shall issue out-of-state shippers' permits which authorize persons located outside this state to sell or ship intoxicating liquor into this state. Except as provided under sub. (4), intoxicating liquor may be shipped into this state only to a person holding a manufacturer's, rectifier's, wholesaler's, industrial alcohol or medicinal alcohol permit under s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a permit under this section, to a person holding a manufacturer's or rectifier's permit under s. 125.52 or a winery permit under s. 125.53. Except as provided under sub. (4), a separate out-of-state shipper's permit is required for each location from which any intoxicating liquor is sold or shipped into this state, including the location from which the invoices are issued for the sales or shipments. Any person holding an out-of-state shipper's permit issued under this section may solicit orders for sales or shipments by the permittee without obtaining the sales solicitation permit required by s. 125.65, but every agent, salesperson or other representative who solicits orders for sales or shipments by an out-of-state shipper shall first obtain a permit for soliciting orders under s. 125.65. No holder of an out-of-state shipper's permit issued under this section may sell intoxicating liquor in this state or ship intoxicating liquor into this state unless the out-of-state shipper is the primary source of supply for that intoxicating liquor.

SB485, s. 24 Section 24. 125.58 (4) (a) (intro.) of the statutes is renumbered 125.58 (4) and amended to read:

SB485,19,12 125.58 (4) A winery located outside of this state may ship wine into this state as provided under s. 125.68 (10) (bm) if all of the following apply: 125.535 and is not required to hold an out-of-state shipper's permit under this section.

SB485, s. 25 Section 25. 125.58 (4) (a) 1. to 4. of the statutes are repealed.

SB485, s. 26 Section 26. 125.58 (4) (b) of the statutes is repealed.

SB485, s. 27 Section 27. 125.65 (8) of the statutes is amended to read:

SB485,19,18 125.65 (8) Nonresident persons holding permits under this section may solicit sales from retailers in this state only if the orders are solicited for, and will be filled by, persons holding permits under s. 125.52 or 125.54.

SB485, s. 28 Section 28. 125.68 (10) (a) of the statutes is amended to read:

SB485,19,25 125.68 (10) (a) Except as provided in par. (bm) s. 125.535, no intoxicating liquor may be shipped into this state unless consigned to a person holding a wholesaler's permit for the sale of intoxicating liquor, other than a retail "Class B" permit under s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a permit under s. 125.58, consigned to a person holding a manufacturer's or rectifier's permit under s. 125.52 or a winery permit under s. 125.53.

SB485, s. 29 Section 29. 125.68 (10) (b) of the statutes is amended to read:

SB485,20,9 125.68 (10) (b) Except as provided in par. (bm) s. 125.535, no common carrier or other person may transport into and deliver within this state any intoxicating liquor unless it is consigned to a person holding a wholesaler's permit for the sale of intoxicating liquor, other than a retail "Class B" permit under s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a permit under s. 125.58, consigned to a person holding a manufacturer's or rectifier's permit under s. 125.52 or a winery permit under s. 125.53. Any common carrier violating this paragraph shall forfeit $100 for each violation.

SB485, s. 30 Section 30. 125.68 (10) (bm) of the statutes is repealed.

SB485, s. 31 Section 31. 125.68 (10) (bs) of the statutes is repealed.

SB485, s. 32 Section 32. 125.68 (10) (c) of the statutes is repealed.

SB485, s. 33 Section 33. 125.69 (1) (a) of the statutes is amended to read:

SB485,20,19 125.69 (1) (a) No intoxicating liquor manufacturer, rectifier, winery, out-of-state shipper permittee, or wholesaler may hold any direct or indirect interest in any "Class A" license or establishment and no "Class A" licensee may hold any direct or indirect interest in a wholesale permit or establishment, except that a winery that has a permit under s. 125.53 may have an ownership interest in a "Class A" license.

SB485, s. 34 Section 34. 125.69 (1) (b) 1. of the statutes is amended to read:

SB485,21,2 125.69 (1) (b) 1. Except as provided under subds. 2. to subd. 4., no intoxicating liquor manufacturer, rectifier, winery, out-of-state shipper permittee, or wholesaler may hold any direct or indirect interest in any "Class B" license or permit or establishment or "Class C" license or establishment and no "Class B" licensee or permittee or "Class C" licensee may hold any direct or indirect interest in a manufacturer, rectifier, winery, out-of-state shipper, or wholesale permit or establishment.

SB485, s. 35 Section 35. 125.69 (1) (b) 2. and 3. of the statutes are repealed.

SB485, s. 36 Section 36. 125.69 (1) (c) (intro.) of the statutes is renumbered 125.69 (1) (c) and amended to read:

SB485,21,13 125.69 (1) (c) No manufacturer, rectifier, winery, or out-of-state shipper permittee, whether located within or without this state, may hold any direct or indirect interest in any wholesale permit or establishment, except as provided in s. 125.53, and except that a manufacturer that is also a brewer may hold a permit issued under s. 125.54 for the wholesale sale of wine only. This paragraph does not prohibit any of the following persons from obtaining a permit under s. 125.65:. Except as provided in s. 125.53, no retail licensee may hold any direct or indirect interest in any manufacturer, rectifier, winery, or out-of-state shipper permittee.

SB485, s. 37 Section 37. 125.69 (1) (c) 1. to 3. of the statutes are repealed.

SB485, s. 38 Section 38. 125.69 (4) (c) of the statutes is repealed.

SB485, s. 39 Section 39. 125.69 (6) (a) of the statutes is amended to read:

SB485,21,20 125.69 (6) (a) No campus or retail licensee or permittee may purchase intoxicating liquor from, or possess intoxicating liquor purchased from, any person other than a manufacturer, rectifier or wholesaler holding a permit under this chapter for the sale of intoxicating liquor.

SB485, s. 40 Section 40. 139.03 (6) of the statutes is created to read:

SB485,21,25 139.03 (6) A winery that receives intoxicating liquor under s. 125.58 (1) is not liable for paying the taxes imposed under this subchapter on the receipt of such intoxicating liquor, if the intoxicating liquor is mixed or blended to produce wine for resale.

SB485, s. 41 Section 41. 139.035 of the statutes is repealed and recreated to read:

SB485,22,18 139.035 Wine shipped directly to individuals in this state. (1) All wine shipped directly to an individual located in Wisconsin by a person holding a direct wine shipper's permit under s. 125.535 shall be sold with the occupational tax imposed under s. 139.03 included in the selling price. As directed by the department, the taxes imposed under s. 139.03 shall be paid to, and a quarterly return filed with, the department once every quarter on or before the 15th day of the next month following the close of the calendar quarter. In addition to filing a quarterly liquor tax return, each person holding a direct wine shipper's permit under s. 125.535 shall be required to file an addendum, on forms furnished by the department, that provides, at minimum, the identity, quantity, and price of all wine shipped to individuals in this state during the previous quarter, along with the name, address, and birthdate of each person who purchased the wine as well as the name of the person of legal drinking age who acknowledged delivery of the wine. Working with permittees under s. 125.535, the department shall develop forms, in both paper and electronic format, for use by such permittees in obtaining this information and complying with any other requirement under this state's law in connection with the direct shipment of wine.

SB485,22,23 (2) Any failure of a person holding a direct wine shipper's permit under s. 125.535 to pay the occupational tax or file the addendum required under sub. (1) within 30 days of its due date constitutes grounds for revocation or suspension of the permit. The provisions on timely filing under s. 71.80 (18) apply to the tax and addendum required under this section.

SB485,23,3 (3) No wine may be shipped directly to an individual in this state by a person holding a direct wine shipper's permit under s. 125.535 unless the tax imposed under s. 77.52 or 77.53 is paid on the sale of such wine.

SB485, s. 42 Section 42. 139.11 (4) (title) of the statutes is amended to read:

SB485,23,5 139.11 (4) (title) Confidentiality and publications.

SB485, s. 43 Section 43. 139.11 (4) of the statutes is renumbered 139.11 (4) (a) and amended to read:

SB485,23,15 139.11 (4) (a) Sections 71.78 (1) and (4) to (9) and 71.83 (2) (a) 3., relating to confidentiality of income, franchise and gift tax returns, apply to any information obtained from any person on a fermented malt beverage or intoxicating liquor tax return, report, schedule, exhibit or other document or from an audit report relating to any of those documents, except that the department of revenue shall publish brewery production and sales statistics and shall publish or permit the publication of statistics on the total number of gallons of the types and brands of intoxicating liquor sold in this state.

SB485, s. 44 Section 44. 139.11 (4) (b) of the statutes is created to read:

SB485,23,22 139.11 (4) (b) Sections 71.78 (1) and (4) to (9) and 71.83 (2) (a) 3., relating to confidentiality of income, franchise and gift tax returns, do not apply to any information obtained from any person on an intoxicating liquor tax return, report, schedule, exhibit or other document or from an audit report relating to any of those documents. With the information provided to the department by any person, the department of revenue shall publish at least once each month:

SB485,23,24 1. Statistics on the total number of gallons of the types and brands of intoxicating liquor sold in this state.

SB485,24,7 2. A current and regularly updated list, made available on paper and on the department's Internet Web site, of permit holders that minimally includes detailed information on the name, address, contact person, and date of permit issuance for every manufacturer's and rectifier's permit issued under s. 125.52, winery permit issued under s. 125.53, direct wine shipper's permit issued under s. 125.535, wholesaler's permit issued under s. 125.54, and out-of-state shipper's permit issued under s. 125.58.

SB485,24,10 3. A report summarizing the identity, quantity, and price of all products sold under each winery permit issued under s. 125.53 and each direct wine shipper's permit issued under s. 125.535.

SB485,24,12 4. A report summarizing the sales quantity and product data available for all products sold under each wholesaler's permit issued under s. 125.54.

SB485, s. 45 Section 45. 185.043 of the statutes is renumbered 185.043 (1) and amended to read:

SB485,24,17 185.043 (1) Five Except as provided in sub. (2), 5 or more adults, one of whom must be a resident, may form a cooperative by signing, acknowledging and filing articles.

SB485, s. 46 Section 46. 185.043 (2) of the statutes is created to read:

SB485,24,25 185.043 (2) If the cooperative is formed for purposes of operating as a small winery cooperative wholesaler under s. 125.545, 3 or more individuals, at least one of whom must be a resident and all of which must be owners of small wineries certified by the department of revenue under s. 125.545 (6) (a), may form a cooperative by signing, acknowledging, and filing articles. Membership in a cooperative formed under this subsection is limited to small wineries certified by the department of revenue under s. 125.545 (6) (a).

SB485, s. 47 Section 47 . Nonstatutory provisions.

SB485,25,8 (1) Position authorization. The authorized FTE positions for the department of revenue are increased by 1.0 PR position, to be funded from the appropriation under section 20.566 (1) (ha) of the statutes, as affected by this act, for the purpose of performing computer, audit, and enforcement services incurred in administering the tax under section 139.03 (2m) of the statutes and for enforcing the 3-tier system for alcohol beverages production, distribution, and sale under chapter 125 of the statutes.

SB485,25,10 (2) Small winery interim certification. (a ) The department of revenue shall, upon application, certify under this subsection eligible applicants as small wineries.

SB485,25,19 (b) Any winery that may seek to become a member of a cooperative wholesaler after October 1, 2008, may apply to the department of revenue for certification as a small winery. If the winery meets the definition of a small winery under section 125.545 (1) (d) of the statutes, as created by this act, and satisfies the requirement under section 125.545 (2) (a) 3. a. of the statutes, as created by this act, and submits any other information that the department determines is necessary to certify that the winery is operating as a small winery and will be eligible for membership in a cooperative wholesaler after October 1, 2008, the department shall certify the winery as a small winery. This certification shall remain valid for one year.

SB485,25,23 (c) In certifying any winery under paragraph (b), the department of revenue shall classify the winery as either a Wisconsin winery or an out-of-state winery, as those terms are defined under section 125.545 (1) of the statutes, as created by this act.

SB485,26,2 (d) The department of revenue shall refuse to certify under this subsection any winery that cannot demonstrate it holds all necessary permits for its operations or that the department finds is otherwise not in full compliance with the laws of this state.

SB485,26,3 (e) This subsection does not apply after September 30, 2008.

SB485,26,9 (3) Small winery distribution phase-in. Notwithstanding section 125.53 (1) of the statutes, as affected by this act, a winery that was issued a permit under section 125.53 (1), 2005 stats., prior to the effective date of this subsection is authorized to sell at wholesale to other licensees or permittees under chapter 125 wine manufactured and bottled on the premises covered by the winery permit. This subsection does not apply after June 30, 2009.

SB485,26,13 (4) Rule making. (a ) The department of revenue shall submit in proposed form the rules required under section 125.545 (6) (b) of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than July 1, 2008.

SB485,27,2 (b) Using the emergency rules procedure under section 227.24 of the statutes, the department of revenue shall promulgate the rules required under section 125.545 (6) (b) of the statutes, as created by this act, for purposes of implementing this act, for the period before the effective date of the rules submitted under paragraph (a). The department of revenue shall promulgate these emergency rules no later than July 1, 2008. Notwithstanding section 227.24 (1) (c) and (2) of the statutes, these emergency rules may remain in effect until July 1, 2010, or the date on which permanent rules take effect, whichever is sooner. Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the department of revenue is not required to provide evidence that promulgating a rule under this paragraph as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this paragraph.

SB485, s. 48 Section 48. Fiscal changes.

SB485,27,7 (1) In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of revenue under section 20.566 (1) (ha) of the statutes, as affected by the acts of 2007, the dollar amount is increased by $7,700 for fiscal year 2008-09 to increase funding for the purposes for which the appropriation is made.

SB485, s. 49 Section 49. Effective dates. This act takes effect on October 1, 2008, except as follows:

SB485,27,10 (1) Section 47 (2 ) of this act takes effect on July 1, 2008.

SB485,27,11 (2) Section 47 (4 ) of this act takes effect on the day after publication.

SB485,27,12 (End)