Amendment SA2-SB268

SB268-SA2,105,23 3. If a permittee fails to maintain an agent in this state after a permit is issued under this section, the permittee is considered to have appointed the department of financial institutions as the permittee's agent, and the permittee may be proceeded against in courts of this state by service of process upon the department of financial institutions.

SB268-SA2,105,25 (e) The application for a permit under this section shall include a provision that the permittee agrees to do all of the following:

SB268-SA2,106,2 1. File reports, provide records, and allow inspections and examinations to the extent provided in s. 125.025 and ch. 139.

SB268-SA2,106,4 2. Pay the expenses reasonably attributable to inspections and examinations made by the division at any premises of the permittee located outside this state.

SB268-SA2,106,6 3. Accept service of process and consent to jurisdiction in any proceeding in this state to enforce the provisions of this chapter or ch. 139.

SB268-SA2,26gc Section 26gc. 125.535 (7) of the statutes is created to read:

SB268-SA2,106,10 125.535 (7) Shipments through fulfillment house; common carriers. (a) A permittee under this section may arrange with a fulfillment house to ship wine on the permittee's behalf only if the fulfillment house holds a permit under s. 125.23.

SB268-SA2,106,12 (b) All containers of wine shipped directly to an individual in this state shall be shipped using a common carrier holding a permit issued under s. 125.22.

SB268-SA2,26gd Section 26gd. 125.54 (1) of the statutes is amended to read:

SB268-SA2,106,20 125.54 (1) Authorized activities. The department division shall issue wholesalers' permits authorizing the permittee to sell, from the premises described in the permit, intoxicating liquor at wholesale to retailers and wholesalers, as well as to manufacturers, rectifiers, and wineries for production purposes. The permittee may not sell intoxicating liquor for consumption on the premises. Possession of a permit under this section does not authorize the permittee to sell tax-free intoxicating liquor and wine brought into this state under s. 139.03 (5).

SB268-SA2,26ge Section 26ge. 125.54 (3) of the statutes is amended to read:

SB268-SA2,106,25 125.54 (3) Taste samples on “ Class A" retail premises. Wholesalers holding a permit issued under this section, employees of such wholesalers, and individuals representing such wholesalers may not assist or participate in providing taste samples under s. 125.06 (13) (a) or 125.51 (2) (am) or 125.69 (9).

SB268-SA2,26gf Section 26gf. 125.54 (5) of the statutes is amended to read:

SB268-SA2,107,7 125.54 (5) Sales area. No wholesaler may sell any intoxicating liquor before filing with the department division a written statement that the permittee is a distributor of a particular brand in this state, or an area of this state, and that the sales of that brand by the permittee and anyone purchasing from the permittee will be limited to the area specified. The permittee shall notify the department division of any change in the area within 7 days of the effective date of the change.

SB268-SA2,26gg Section 26gg. 125.54 (6) of the statutes is amended to read:

SB268-SA2,107,13 125.54 (6) Multiple permits. Not more than 2 Multiple wholesalers' permits may be issued to any one person. In each application for a wholesaler's permit, the applicant shall state that whether application has not been made for more than one any other wholesaler's permit and shall identify any other wholesaler's permit held by the applicant.

SB268-SA2,26gh Section 26gh. 125.54 (7) (a) 2. of the statutes is amended to read:

SB268-SA2,107,21 125.54 (7) (a) 2. A permittee under this section shall annually sell and deliver intoxicating liquor to at least 10 retail licensees or permittees that do not have any direct or indirect an interest in each other or in the permittee under this section. The department division shall not issue a permit under this section unless the applicant represents to the department division an intention to satisfy this requirement, and shall not renew a permit issued under this section unless the permittee demonstrates that this requirement has been satisfied.

SB268-SA2,26gi Section 26gi. 125.54 (7) (c) 3. of the statutes is amended to read:

SB268-SA2,107,25 125.54 (7) (c) 3. This paragraph shall not affect the authority of any municipality or the department division to revoke, suspend, or refuse to renew or issue a license or permit under s. 125.12.

SB268-SA2,26gj Section 26gj. 125.54 (7) (d) of the statutes is amended to read:

SB268-SA2,108,11 125.54 (7) (d) The department division shall promulgate rules to administer and enforce the requirements under this subsection. The rules shall ensure coordination between the department's division's issuance and renewal of permits under this section and its enforcement of the requirements of this subsection, and shall require that all applications for issuance or renewal of permits under this section be processed by department division personnel generally familiar with activities of intoxicating liquor wholesalers. The department division shall establish by rule minimum requirements for warehouse facilities on premises described in permits issued under this section and for periodic site inspections by the department division of such warehouse facilities.

SB268-SA2,26gk Section 26gk. 125.545 (title) of the statutes is amended to read:

SB268-SA2,108,13 125.545 (title) Small winery cooperative wholesalers.

SB268-SA2,26gm Section 26gm. 125.545 (1) (a) of the statutes is amended to read:

SB268-SA2,108,18 125.545 (1) (a) “Member" means a small winery or small manufacturer 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.

SB268-SA2,26gn Section 26gn. 125.545 (1) (ar) of the statutes is created to read:

SB268-SA2,108,21 125.545 (1) (ar) “Out-of-state manufacturer" means a manufacturer or rectifier of intoxicating liquor that is located in a state other than this state.

SB268-SA2,26go Section 26go. 125.545 (1) (cm) of the statutes is created to read:

SB268-SA2,108,25 125.545 (1) (cm) “Small manufacturer" means any manufacturer or rectifier that produces and bottles less than 50,000 gallons of intoxicating liquor other than wine in a calendar year.

SB268-SA2,26gp Section 26gp. 125.545 (1) (d) of the statutes is amended to read:

SB268-SA2,109,3 125.545 (1) (d) “Small winery" means any winery that produces and bottles less than 25,000 50,000 gallons of wine in a calendar year.

SB268-SA2,26gq Section 26gq. 125.545 (1) (e) of the statutes is amended to read:

SB268-SA2,109,6 125.545 (1) (e) “Small winery cooperative wholesaler" or “cooperative wholesaler" means an entity established under this section.

SB268-SA2,26gr Section 26gr. 125.545 (1) (em) of the statutes is created to read:

SB268-SA2,109,9 125.545 (1) (em) “Wisconsin manufacturer" means a manufacturer or rectifier operating under a permit issued under s. 125.52.

SB268-SA2,26gs Section 26gs. 125.545 (2) (a) 1. of the statutes is amended to read:

SB268-SA2,109,18 125.545 (2) (a) 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. subds. 3. and 4., only small wineries and small manufacturers may be members of a cooperative wholesaler. The principal purpose of a cooperative wholesaler shall be to sell and distribute wine intoxicating liquor manufactured, blended, or mixed, and also bottled, by its members.

SB268-SA2,26gt Section 26gt. 125.545 (2) (a) 3. b. of the statutes is amended to read:

SB268-SA2,109,21 125.545 (2) (a) 3. b. The small winery is certified by the department division under sub. (6) (a) as a small winery.

SB268-SA2,26gu Section 26gu. 125.545 (2) (a) 4. of the statutes is created to read:

SB268-SA2,109,25 125.545 (2) (a) 4. A small manufacturer may become a member of a cooperative wholesaler only if the small manufacturer is certified by the division under sub. (6) (a) as a small manufacturer.

SB268-SA2,26gv Section 26gv. 125.545 (2) (b) of the statutes is amended to read:

SB268-SA2,110,8 125.545 (2) (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 or Wisconsin manufacturer shall be either an owner or an employee of that Wisconsin winery or Wisconsin manufacturer. If any out-of-state winery or out-of-state manufacturer 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 or out-of-state manufacturer that is a member of the cooperative wholesaler.

SB268-SA2,26gw Section 26gw. 125.545 (2) (c) of the statutes is amended to read:

SB268-SA2,110,15 125.545 (2) (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 intoxicating liquor to retailers and other wholesalers in the manner authorized under this section.

SB268-SA2,26gx Section 26gx. 125.545 (3) (a) 1. of the statutes is amended to read:

SB268-SA2,110,24 125.545 (3) (a) 1. Within 7 days after filing its articles of incorporation under ch. 185, a cooperative wholesaler shall apply to the department division 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 division 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.

SB268-SA2,26hb Section 26hb. 125.545 (3) (a) 2. of the statutes is amended to read:

SB268-SA2,111,7 125.545 (3) (a) 2. Notwithstanding s. 125.54 (6), the department division may issue not more than one wholesaler's permit to any cooperative wholesaler. The department division may not issue more than a total of 6 wholesalers' permits to cooperative wholesalers in this state. The department division 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.

SB268-SA2,26hc Section 26hc. 125.545 (3) (a) 2. of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB268-SA2,111,16 125.545 (3) (a) 2. Notwithstanding s. 125.54 (6), the division may issue not more than one wholesaler's permit to any cooperative wholesaler. The division may not issue more than a total of 6 wholesalers' permits to cooperative wholesalers in this state. The Except as provided in subd. 2m., the division 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.

SB268-SA2,26hd Section 26hd. 125.545 (3) (a) 2m. of the statutes is created to read:

SB268-SA2,111,25 125.545 (3) (a) 2m. The division may issue new wholesalers' permits to cooperative wholesalers after the effective date of this subdivision .... [LRB inserts date], but not later than the first day of the 7th month beginning after the effective date of this subdivision .... [LRB inserts date], and may renew wholesalers' permits that were initially issued to cooperative wholesalers during this period. The division may not issue new wholesalers' permits under this subdivision that cause the total number of wholesalers' permits issued to cooperative wholesalers in this state to exceed 6.

SB268-SA2,26he Section 26he. 125.545 (3) (b) of the statutes is amended to read:

SB268-SA2,112,6 125.545 (3) (b) 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 intoxicating liquor. Except as provided in subd. 3., a cooperative wholesaler may not sell or distribute any alcohol beverages, or any other product, except wine intoxicating liquor.

SB268-SA2,112,14 2. A cooperative wholesaler shall purchase on consignment wine intoxicating liquor from its members to be resold to retailers and other wholesalers. Notwithstanding s. 125.69 (5), a cooperative wholesaler may not purchase wine intoxicating liquor from any person other than a member. A cooperative wholesaler may not resell or distribute wine intoxicating liquor unless it has been purchased on consignment from a member. Notwithstanding s. 125.54 (1), a cooperative wholesaler may not sell or distribute wine intoxicating liquor except to a retailer or to a wholesaler holding a permit under s. 125.54.

SB268-SA2,112,21 3. A cooperative wholesaler may purchase ancillary wine industry trade goods such as bottles, corks, and other supplies used by wineries or manufacturers in the bottling and sale of wine intoxicating liquor 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 or manufacturer that was formerly a member of the cooperative wholesaler.

SB268-SA2,113,2 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 or Wisconsin manufacturer, and any discrimination against a member that is an out-of-state winery or out-of-state manufacturer, is prohibited.

SB268-SA2,26hf Section 26hf. 125.545 (3) (c) of the statutes is amended to read:

SB268-SA2,113,9 125.545 (3) (c) Neither a cooperative wholesaler nor its members are subject to any restriction on dealings under s. 125.69 (1) between wholesalers and wineries or manufacturers. 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.

SB268-SA2,26hg Section 26hg. 125.545 (4) of the statutes is amended to read:

SB268-SA2,113,15 125.545 (4) Exclusive distribution. A member of a cooperative wholesaler may make its wine intoxicating liquor 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 intoxicating liquor directly to any other wholesaler or directly to a retailer.

SB268-SA2,26hi Section 26hi. 125.545 (5) of the statutes is amended to read:

SB268-SA2,113,21 125.545 (5) Biennial reports. With each application for renewal of a wholesaler's permit issued to a cooperative wholesaler, each cooperative wholesaler shall file with the department division, in the form and manner prescribed by the department division by rule, a biennial report that includes detailed information on its members, board of directors, and sale and distribution activities.

SB268-SA2,26hj Section 26hj. 125.545 (6) (title) and (a) 1. and 2. of the statutes are amended to read:

SB268-SA2,113,24 125.545 (6) (title) Department Division certification and rule making.

SB268-SA2,114,3 (a) 1. The department division shall, upon application, certify eligible applicants as small wineries and renew prior certifications of eligible applicants as small wineries.

SB268-SA2,114,11 2. Any winery seeking to become a member of, or to maintain its membership in, a cooperative wholesaler may apply to the department division 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 division 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 division shall certify the winery as a small winery. This certification shall remain valid for one year.

SB268-SA2,26hk Section 26hk. 125.545 (6) (a) 1. of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB268-SA2,114,16 125.545 (6) (a) 1. The division shall, upon application, certify eligible applicants as small wineries or small manufacturers and renew prior certifications of eligible applicants as small wineries or small manufacturers.

SB268-SA2,26hm Section 26hm. 125.545 (6) (a) 2m. of the statutes is created to read:

SB268-SA2,114,25 125.545 (6) (a) 2m. Any manufacturer seeking to become a member of, or to maintain its membership in, a cooperative wholesaler may apply to the division for certification as a small manufacturer. If the manufacturer meets the definition of a small manufacturer under this section and submits any other information that the division determines is necessary to certify that the manufacturer is operating as a small manufacturer and is eligible for membership in a cooperative wholesaler, the division shall certify the manufacturer as a small manufacturer. This certification shall remain valid for one year.

SB268-SA2,26hn Section 26hn. 125.545 (6) (a) 3. of the statutes is amended to read:

SB268-SA2,115,4 125.545 (6) (a) 3. In certifying any winery under subd. 2., the department division shall classify the winery as either a Wisconsin winery or an out-of-state winery.

SB268-SA2,26ho Section 26ho. 125.545 (6) (a) 3m. of the statutes is created to read:

SB268-SA2,115,8 125.545 (6) (a) 3m. In certifying any manufacturer under subd. 2m., the division shall classify the manufacturer as either a Wisconsin manufacturer or an out-of-state manufacturer.

SB268-SA2,26hp Section 26hp. 125.545 (6) (a) 4. of the statutes is amended to read:

SB268-SA2,115,13 125.545 (6) (a) 4. The department division shall refuse to certify under this paragraph any winery that cannot demonstrate it holds all necessary permits for its operations or that the department division finds is otherwise not in full compliance with the laws of this state.

SB268-SA2,26hq Section 26hq. 125.545 (6) (a) 4. of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB268-SA2,115,19 125.545 (6) (a) 4. The division shall refuse to certify under this paragraph any winery or manufacturer that cannot demonstrate it holds all necessary permits for its operations or that the division finds is otherwise not in full compliance with the laws of this state.

SB268-SA2,26hr Section 26hr. 125.545 (6) (b) of the statutes is amended to read:

SB268-SA2,115,22 125.545 (6) (b) The department division shall promulgate rules to administer and enforce the requirements under this section.

SB268-SA2,26hs Section 26hs. 125.545 (7) of the statutes is amended to read:

SB268-SA2,116,2 125.545 (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 division under s. 125.12 (5).

SB268-SA2,116,6 (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 division under s. 125.12 (5).

SB268-SA2,26ht Section 26ht. 125.545 (7) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB268-SA2,116,12 125.545 (7) Penalties. (a) Any winery or manufacturer that sells or distributes its wine intoxicating liquor 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 division under s. 125.12 (5).

SB268-SA2,116,17 (b) Any cooperative wholesaler that provides preferential treatment to a Wisconsin winery or Wisconsin manufacturer or discriminates against an out-of-state winery or out-of-state manufacturer is subject to a fine of not more than $10,000 and revocation of its wholesaler's permit by the division under s. 125.12 (5).