125.54(8)
(8) Duty to work in good faith. Each wholesaler has an obligation to negotiate in good faith with any manufacturer, rectifier, or winery that seeks to sell its products in this state through the wholesaler. To this end, all wholesalers shall work diligently to ensure that distribution channels are available for the sale of intoxicating liquor products through wholesalers to retailers in this state.
125.54 Cross-reference
Cross-reference: See also s.
Tax 8.22, Wis. adm. code.
125.54 Annotation
Section 176.05 (1a) (b) [now s. 125.54 (5)] does not prohibit a wholesaler from selling to a retailer located outside an area described in an area statement provided that the sale takes place within that area. 70 Atty. Gen. 258.
125.545
125.545
Small winery cooperative wholesalers. 125.545(1)(a)
(a) "Member" means a small winery that meets the requirements established under this section for membership in a cooperative wholesaler and that has been qualified and accepted for membership in a cooperative wholesaler.
125.545(1)(b)
(b) "Out-of-state winery" means a winery that is located in a state other than this state and that holds a valid direct shipper's permit issued under
s. 125.535.
125.545(1)(c)
(c) "Retailer" means any person holding a "Class A", "Class B", or "Class C" license or "Class B" permit issued under
s. 125.51.
125.545(1)(d)
(d) "Small winery" means any winery that produces and bottles less than 25,000 gallons of wine in a calendar year.
125.545(1)(e)
(e) "Small winery cooperative wholesaler" or "cooperative wholesaler" means an entity established under this section.
125.545(1)(f)
(f) "Wisconsin winery" means a winery operating under a permit issued under
s. 125.53.
125.545(2)(a)1.1. A cooperative wholesaler may only be created as provided under
s. 185.043 (2) and this section. Each cooperative wholesaler operating under authority of this section shall be organized under
ch. 185 but shall be subject to the limitations on such cooperatives imposed by this section. Subject to
subd. 3., only small wineries may be members of a cooperative wholesaler. The principal purpose of a cooperative wholesaler shall be to sell and distribute wine manufactured, blended, or mixed, and also bottled, by its members.
125.545(2)(a)2.
2. Notwithstanding
s. 185.08 (1), a cooperative wholesaler shall include in its articles of incorporation under
ch. 185 a single location for its agent and principal office, which location shall be in this state.
125.545(2)(a)3.
3. A small winery may become a member of a cooperative wholesaler only if all of the following apply:
125.545(2)(b)
(b) In addition to the requirements specified in
s. 185.31 for the board of directors of a cooperative wholesaler, a director representing a member that is a Wisconsin winery shall be either an owner or an employee of that Wisconsin winery. If any out-of-state winery is a member of the cooperative wholesaler, at least one director shall be either an owner or an employee of an out-of-state winery that is a member of the cooperative wholesaler.
125.545(2)(c)
(c) Notwithstanding any provision of
ch. 185, a cooperative wholesaler may not employ any owner or employee of a member. However, an individual that is an owner or an employee of a member may act as a volunteer to assist that cooperative wholesaler in the sale and distribution of wine to retailers and other wholesalers in the manner authorized under this section.
125.545(3)(a)1.1. Within 7 days after filing its articles of incorporation under
ch. 185, a cooperative wholesaler shall apply to the department for a wholesaler's permit under
s. 125.54. The provisions of
s. 125.04 (5) (c) and
(6) shall apply to a cooperative wholesaler as if the cooperative wholesaler were a corporation or a limited liability company and, for each of these provisions, the department shall determine whether the cooperative wholesaler is most similar to a corporation or a limited liability company in the context of that provision and apply that provision to the cooperative wholesaler accordingly.
125.545(3)(a)2.
2. Notwithstanding
s. 125.54 (6), the department may issue not more than one wholesaler's permit to any cooperative wholesaler. The department may not issue more than a total of 6 wholesalers' permits to cooperative wholesalers in this state. The department may not issue any new wholesaler's permit to a cooperative wholesaler after December 31, 2008, but may renew wholesalers' permits that were initially issued to cooperative wholesalers prior to that date.
125.545(3)(a)3.
3. No cooperative wholesaler may operate in this state without a wholesaler's permit.
125.545(3)(b)1.1. Notwithstanding
s. 125.54 (1), and except as provided in
subd. 3., a cooperative wholesaler issued a wholesaler's permit under
par. (a) is authorized to sell and distribute only wine. Except as provided in
subd. 3., a cooperative wholesaler may not sell or distribute any alcohol beverages, or any other product, except wine.
125.545(3)(b)2.
2. A cooperative wholesaler shall purchase on consignment wine from its members to be resold to retailers and other wholesalers. Notwithstanding
s. 125.69 (5), a cooperative wholesaler may not purchase wine from any person other than a member. A cooperative wholesaler may not resell or distribute wine unless it has been purchased on consignment from a member. Notwithstanding
s. 125.54 (1), a cooperative wholesaler may not sell or distribute wine except to a retailer or to a wholesaler holding a permit under
s. 125.54.
125.545(3)(b)3.
3. A cooperative wholesaler may purchase ancillary wine industry trade goods such as bottles, corks, and other supplies used by wineries in the bottling and sale of wine if such trade goods do not include any alcohol beverages. Any wine industry trade goods purchased by a cooperative wholesaler under this subdivision may be offered for resale to the cooperative wholesaler's members or to any winery that was formerly a member of the cooperative wholesaler.
125.545(3)(b)4.
4. A cooperative wholesaler shall work with all of its members on evenhanded terms. Any preferential treatment by a cooperative wholesaler for the benefit of a member that is a Wisconsin winery, and any discrimination against a member that is an out-of-state winery, is prohibited.
125.545(3)(c)
(c) Neither a cooperative wholesaler nor its members are subject to any restriction on dealings under
s. 125.69 (1) between wholesalers and wineries. Except as provided in
s. 125.54 (7) (e) and as otherwise provided in this section, all provisions of this chapter and
ch. 139 that apply to a wholesaler issued a permit under
s. 125.54 also apply to a cooperative wholesaler issued a permit under
s. 125.54.
125.545(4)
(4) Exclusive distribution. A member of a cooperative wholesaler may make its wine available for purchase by a retailer or another wholesaler only through the cooperative wholesaler of which it is a member. A member of a cooperative wholesaler may not sell its wine directly to any other wholesaler or directly to a retailer.
125.545(5)
(5) Semiannual meetings and biennial reports. 125.545(5)(a)(a) At least once every 6 months, the board of directors of a cooperative wholesaler shall meet in person with an employee of the department. At each of these meetings, the cooperative wholesaler shall provide a detailed report of its operations and sales activities, bring whatever documentation the department considers reasonably necessary for the department to conduct its review of the cooperative wholesaler, and answer any questions the department may have about the cooperative wholesaler's activities. A representative of the University of Wisconsin Center for Cooperatives shall also attend each of these meetings. Within 7 days after each of these meetings, the department shall submit in writing to the cooperative wholesaler all additional questions for which the department requests an answer of the cooperative wholesaler. The cooperative wholesaler shall provide answers to the department's questions within 7 days. Within 6 weeks after each of these meetings, the department shall issue a report stating whether the cooperative wholesaler is operating properly under this state's law and shall detail any problem areas that the cooperative wholesaler must correct. The University of Wisconsin Center for Cooperatives shall also issue a report within 6 weeks of each of these meetings and detail in that report all recommendations on how the cooperative wholesaler can improve its operations and better comply with this state's law. All reports issued by the department and by the University of Wisconsin Center for Cooperatives shall be publicly available.
125.545(5)(b)
(b) With each application for renewal of a wholesaler's permit issued to a cooperative wholesaler, each cooperative wholesaler shall file with the department, in the form and manner prescribed by the department by rule, a biennial report that includes detailed information on its members, board of directors, and sale and distribution activities.
125.545(6)
(6) Department certification and rule making. 125.545(6)(a)1.1. The department shall, upon application, certify eligible applicants as small wineries and renew prior certifications of eligible applicants as small wineries.
125.545(6)(a)2.
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.
125.545(6)(a)3.
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.
125.545(6)(a)4.
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.
125.545(6)(b)
(b) The department shall promulgate rules to administer and enforce the requirements under this section.
125.545(7)(a)(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).
125.545(7)(b)
(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).
125.545 History
History: 2007 a. 85.
125.545 Cross-reference
Cross-reference: See also s.
Tax 8.05, Wis. adm. code.
125.55
125.55
Combination permits. 125.55(1)(1) The department may issue a combination manufacturer's and rectifier's permit.
125.55(2)
(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.
125.56
125.56
Sacramental wine. 125.56(1)(1)
Authorization to sell. Any person holding a permit under
s. 125.52 (1),
125.53 or
125.54 may sell sacramental wine directly to persons holding permits under
sub. (2).
125.56(2)(a)(a) The department shall issue sacramental wine permits to organized religious bodies authorizing them to purchase for their own use sacramental wine from any permittee under
s. 125.52 (1),
125.53 or
125.54. A permit under this subsection does not authorize the resale of sacramental wine by the permittee.
125.56(2)(b)
(b) No sacramental wine permit may be issued to a person acting as an agent for or in the employ of another.
125.56(2)(c)
(c) Shipments of sacramental wine shall be conspicuously labeled "for sacramental purposes" and shall meet any other requirements the department prescribes by rule.
125.56 History
History: 1981 c. 79;
1983 a. 516 s.
8.
125.58
125.58
Out-of-state shippers' permit; exception to requirement. 125.58(1)(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 wholesaler's 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.
125.58(2)
(2) Out-of-state shippers' permits may be issued only to a person who holds a valid certificate issued under
s. 73.03 (50), but may not be issued to a person acting as an agent for or in the employ of another. Notwithstanding
s. 125.04 (5) (a), natural persons obtaining out-of-state shippers' permits are not required to be residents of this state. Notwithstanding
s. 125.04 (5) (a) 5., a person is not required to complete a responsible beverage server training course to be eligible for a permit under this section. Notwithstanding
s. 125.04 (6), corporations or limited liability companies obtaining out-of-state shippers' permits are not required to appoint agents.
125.58(4)
(4) A winery located outside of this state may ship wine into this state as provided under
s. 125.535 and is not required to hold an out-of-state shipper's permit under this section.
125.58 Cross-reference
Cross-reference: See also ss.
Tax 8.24,
8.35 and
8.61, Wis. adm. code.
125.58 Annotation
Treating All Grapes Equally: Interstate Alcohol Shipping After Granholm. Gary. Wis. Law. March 2010.
125.60
125.60
Wholesale alcohol permit. 125.60(1)
(1) The department may issue a wholesale alcohol permit which authorizes the permittee to sell ethyl alcohol of 190 proof or more to persons holding permits or licenses issued under
s. 125.61 or
125.62. Nothing in this section requires manufacturers, rectifiers and wholesalers holding permits issued under
s. 125.52 (1) or
125.54 to obtain a wholesale alcohol permit.
125.60(2)
(2) Wholesale alcohol permits may be issued to any person who holds a valid certificate issued under
s. 73.03 (50) and who is qualified under
s. 125.04 (5), except a person acting as an agent for or in the employ of another. Notwithstanding
s. 125.04 (5) (a) 5., a person is not required to complete a responsible beverage server training course to be qualified for a permit under this section.
125.60(3)
(3) Holders of wholesale alcohol permits who do not hold permits issued under
s. 125.52 (1) or
125.54 are exempt from
s. 125.65 as it relates to special permits for agents or representatives of wholesale alcohol permit holders.
125.60(4)
(4) Holders of wholesale alcohol permits under this section who do not hold permits issued under
s. 125.52 (1) or
125.54 may sell or deal in ethyl alcohol, except that no alcohol may be sold for consumption on the premises of the permittee.
125.61
125.61
Medicinal alcohol permit. 125.61(1)
(1) The department may issue a medicinal alcohol permit which authorizes the permittee to purchase and use alcohol for medicinal purposes only. The permit may be issued only to persons who prove to the department that they use alcohol for medicinal purposes.
125.61(2)
(2) Medicinal alcohol permits may be issued to any person qualified under
s. 125.04 (5), except a person acting as an agent for or in the employ of another. Notwithstanding
s. 125.04 (5) (a) 5., a person is not required to complete a responsible beverage server training course to be qualified for a permit under this section.
125.61(3)
(3) Shipments of medicinal alcohol shall be conspicuously labeled "for medicinal purposes" and shall meet other requirements which the department prescribes by rule.
125.61(4)
(4) A medicinal permit shall be issued free of charge by the department and is not subject to
s. 125.04 (11) (a).
125.61 History
History: 1981 c. 79;
1983 a. 516 s.
8;
1993 a. 259.
125.62
125.62
Industrial alcohol permit. 125.62(1)
(1) The department may issue an industrial alcohol permit which authorizes the permittee to purchase and use alcohol for industrial purposes only. Such permits may be issued only to persons who prove to the department that they use alcohol for industrial purposes.
125.62(2)
(2) Industrial alcohol permits may be issued to any person who holds a valid certificate issued under
s. 73.03 (50) and who is qualified under
s. 125.04 (5), except a person acting as agent for or in the employ of another. Notwithstanding
s. 125.04 (5) (a) 5., a person is not required to complete a responsible beverage server training course to be qualified for a permit under this section.
125.62(3)
(3) Shipments of industrial alcohol shall be conspicuously labeled "for industrial purposes" and shall meet other requirements which the department prescribes by rule.
125.63
125.63
Industrial wine permit. 125.63(1)
(1) The department may issue an industrial wine permit which authorizes the purchase and use of wine for industrial purposes only. An industrial wine permit may be issued only to persons who prove to the department that they use wine for industrial purposes.
125.63(2)
(2) Industrial wine permits may be issued to any person who holds a valid certificate issued under
s. 73.03 (50) and who is qualified under
s. 125.04 (5), except a person acting as an agent for or in the employ of another. Notwithstanding
s. 125.04 (5) (a) 5., a person is not required to complete a responsible beverage server training course to be qualified for a permit under this section.
125.63(3)
(3) Shipments of industrial wine shall be conspicuously labeled "for industrial purposes" and shall meet other requirements which the department prescribes by rule.
