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SB268-SA2,26gk 12Section 26gk. 125.545 (title) of the statutes is amended to read:
SB268-SA2,108,13 13125.545 (title) Small winery cooperative wholesalers.
SB268-SA2,26gm 14Section 26gm. 125.545 (1) (a) of the statutes is amended to read:
SB268-SA2,108,1815 125.545 (1) (a) “Member" means a small winery or small manufacturer that
16meets the requirements established under this section for membership in a
17cooperative wholesaler and that has been qualified and accepted for membership in
18a cooperative wholesaler.
SB268-SA2,26gn 19Section 26gn. 125.545 (1) (ar) of the statutes is created to read:
SB268-SA2,108,2120 125.545 (1) (ar) “Out-of-state manufacturer" means a manufacturer or
21rectifier of intoxicating liquor that is located in a state other than this state.
SB268-SA2,26go 22Section 26go. 125.545 (1) (cm) of the statutes is created to read:
SB268-SA2,108,2523 125.545 (1) (cm) “Small manufacturer" means any manufacturer or rectifier
24that produces and bottles less than 50,000 gallons of intoxicating liquor other than
25wine in a calendar year.
SB268-SA2,26gp
1Section 26gp. 125.545 (1) (d) of the statutes is amended to read:
SB268-SA2,109,32 125.545 (1) (d) “Small winery" means any winery that produces and bottles less
3than 25,000 50,000 gallons of wine in a calendar year.
SB268-SA2,26gq 4Section 26gq. 125.545 (1) (e) of the statutes is amended to read:
SB268-SA2,109,65 125.545 (1) (e) “Small winery cooperative wholesaler" or “cooperative
6wholesaler" means an entity established under this section.
SB268-SA2,26gr 7Section 26gr. 125.545 (1) (em) of the statutes is created to read:
SB268-SA2,109,98 125.545 (1) (em) “Wisconsin manufacturer" means a manufacturer or rectifier
9operating under a permit issued under s. 125.52.
SB268-SA2,26gs 10Section 26gs. 125.545 (2) (a) 1. of the statutes is amended to read:
SB268-SA2,109,1811 125.545 (2) (a) 1. A cooperative wholesaler may only be created as provided
12under s. 185.043 (2) and this section. Each cooperative wholesaler operating under
13authority of this section shall be organized under ch. 185 but shall be subject to the
14limitations on such cooperatives imposed by this section. Subject to subd. subds. 3.
15and 4., only small wineries and small manufacturers may be members of a
16cooperative wholesaler. The principal purpose of a cooperative wholesaler shall be
17to sell and distribute wine intoxicating liquor manufactured, blended, or mixed, and
18also bottled, by its members.
SB268-SA2,26gt 19Section 26gt. 125.545 (2) (a) 3. b. of the statutes is amended to read:
SB268-SA2,109,2120 125.545 (2) (a) 3. b. The small winery is certified by the department division
21under sub. (6) (a) as a small winery.
SB268-SA2,26gu 22Section 26gu. 125.545 (2) (a) 4. of the statutes is created to read:
SB268-SA2,109,2523 125.545 (2) (a) 4. A small manufacturer may become a member of a cooperative
24wholesaler only if the small manufacturer is certified by the division under sub. (6)
25(a) as a small manufacturer.
SB268-SA2,26gv
1Section 26gv. 125.545 (2) (b) of the statutes is amended to read:
SB268-SA2,110,82 125.545 (2) (b) In addition to the requirements specified in s. 185.31 for the
3board of directors of a cooperative wholesaler, a director representing a member that
4is a Wisconsin winery or Wisconsin manufacturer shall be either an owner or an
5employee of that Wisconsin winery or Wisconsin manufacturer. If any out-of-state
6winery or out-of-state manufacturer is a member of the cooperative wholesaler, at
7least one director shall be either an owner or an employee of an out-of-state winery
8or out-of-state manufacturer that is a member of the cooperative wholesaler.
SB268-SA2,26gw 9Section 26gw. 125.545 (2) (c) of the statutes is amended to read:
SB268-SA2,110,1510 125.545 (2) (c) Notwithstanding any provision of ch. 185, a cooperative
11wholesaler may not employ any owner or employee of a member. However, an
12individual that is an owner or an employee of a member may act as a volunteer to
13assist that cooperative wholesaler in the sale and distribution of wine intoxicating
14liquor
to retailers and other wholesalers in the manner authorized under this
15section.
SB268-SA2,26gx 16Section 26gx. 125.545 (3) (a) 1. of the statutes is amended to read:
SB268-SA2,110,2417 125.545 (3) (a) 1. Within 7 days after filing its articles of incorporation under
18ch. 185, a cooperative wholesaler shall apply to the department division for a
19wholesaler's permit under s. 125.54. The provisions of s. 125.04 (5) (c) and (6) shall
20apply to a cooperative wholesaler as if the cooperative wholesaler were a corporation
21or a limited liability company and, for each of these provisions, the department
22division shall determine whether the cooperative wholesaler is most similar to a
23corporation or a limited liability company in the context of that provision and apply
24that provision to the cooperative wholesaler accordingly.
SB268-SA2,26hb 25Section 26hb. 125.545 (3) (a) 2. of the statutes is amended to read:
SB268-SA2,111,7
1125.545 (3) (a) 2. Notwithstanding s. 125.54 (6), the department division may
2issue not more than one wholesaler's permit to any cooperative wholesaler. The
3department division may not issue more than a total of 6 wholesalers' permits to
4cooperative wholesalers in this state. The department division may not issue any
5new wholesaler's permit to a cooperative wholesaler after December 31, 2008, but
6may renew wholesalers' permits that were initially issued to cooperative wholesalers
7prior to that date.
SB268-SA2,26hc 8Section 26hc. 125.545 (3) (a) 2. of the statutes, as affected by 2023 Wisconsin
9Act .... (this act), is amended to read:
SB268-SA2,111,1610 125.545 (3) (a) 2. Notwithstanding s. 125.54 (6), the division may issue not
11more than one wholesaler's permit to any cooperative wholesaler. The division may
12not issue more than a total of 6 wholesalers' permits to cooperative wholesalers in
13this state. The Except as provided in subd. 2m., the division may not issue any new
14wholesaler's permit to a cooperative wholesaler after December 31, 2008, but may
15renew wholesalers' permits that were initially issued to cooperative wholesalers
16prior to that date.
SB268-SA2,26hd 17Section 26hd. 125.545 (3) (a) 2m. of the statutes is created to read:
SB268-SA2,111,2518 125.545 (3) (a) 2m. The division may issue new wholesalers' permits to
19cooperative wholesalers after the effective date of this subdivision .... [LRB inserts
20date], but not later than the first day of the 7th month beginning after the effective
21date of this subdivision .... [LRB inserts date], and may renew wholesalers' permits
22that were initially issued to cooperative wholesalers during this period. The division
23may not issue new wholesalers' permits under this subdivision that cause the total
24number of wholesalers' permits issued to cooperative wholesalers in this state to
25exceed 6.
SB268-SA2,26he
1Section 26he. 125.545 (3) (b) of the statutes is amended to read:
SB268-SA2,112,62 125.545 (3) (b) 1. Notwithstanding s. 125.54 (1), and except as provided in subd.
33., a cooperative wholesaler issued a wholesaler's permit under par. (a) is authorized
4to sell and distribute only wine intoxicating liquor. Except as provided in subd. 3.,
5a cooperative wholesaler may not sell or distribute any alcohol beverages, or any
6other product, except wine intoxicating liquor.
SB268-SA2,112,147 2. A cooperative wholesaler shall purchase on consignment wine intoxicating
8liquor
from its members to be resold to retailers and other wholesalers.
9Notwithstanding s. 125.69 (5), a cooperative wholesaler may not purchase wine
10intoxicating liquor from any person other than a member. A cooperative wholesaler
11may not resell or distribute wine intoxicating liquor unless it has been purchased on
12consignment
from a member. Notwithstanding s. 125.54 (1), a cooperative
13wholesaler may not sell or distribute wine intoxicating liquor except to a retailer or
14to a wholesaler holding a permit under s. 125.54.
SB268-SA2,112,2115 3. A cooperative wholesaler may purchase ancillary wine industry trade goods
16such as bottles, corks, and other supplies used by wineries or manufacturers in the
17bottling and sale of wine intoxicating liquor if such trade goods do not include any
18alcohol beverages. Any wine industry trade goods purchased by a cooperative
19wholesaler under this subdivision may be offered for resale to the cooperative
20wholesaler's members or to any winery or manufacturer that was formerly a member
21of the cooperative wholesaler.
SB268-SA2,113,222 4. A cooperative wholesaler shall work with all of its members on evenhanded
23terms. Any preferential treatment by a cooperative wholesaler for the benefit of a
24member that is a Wisconsin winery or Wisconsin manufacturer, and any

1discrimination against a member that is an out-of-state winery or out-of-state
2manufacturer
, is prohibited.
SB268-SA2,26hf 3Section 26hf. 125.545 (3) (c) of the statutes is amended to read:
SB268-SA2,113,94 125.545 (3) (c) Neither a cooperative wholesaler nor its members are subject
5to any restriction on dealings under s. 125.69 (1) between wholesalers and wineries
6or manufacturers. Except as provided in s. 125.54 (7) (e) and as otherwise provided
7in this section, all provisions of this chapter and ch. 139 that apply to a wholesaler
8issued a permit under s. 125.54 also apply to a cooperative wholesaler issued a permit
9under s. 125.54.
SB268-SA2,26hg 10Section 26hg. 125.545 (4) of the statutes is amended to read:
SB268-SA2,113,1511 125.545 (4) Exclusive distribution. A member of a cooperative wholesaler
12may make its wine intoxicating liquor available for purchase by a retailer or another
13wholesaler only through the cooperative wholesaler of which it is a member. A
14member of a cooperative wholesaler may not sell its wine intoxicating liquor directly
15to any other wholesaler or directly to a retailer.
SB268-SA2,26hi 16Section 26hi. 125.545 (5) of the statutes is amended to read:
SB268-SA2,113,2117 125.545 (5) Biennial reports. With each application for renewal of a
18wholesaler's permit issued to a cooperative wholesaler, each cooperative wholesaler
19shall file with the department division, in the form and manner prescribed by the
20department division by rule, a biennial report that includes detailed information on
21its members, board of directors, and sale and distribution activities.
SB268-SA2,26hj 22Section 26hj. 125.545 (6) (title) and (a) 1. and 2. of the statutes are amended
23to read:
SB268-SA2,113,2424 125.545 (6) (title) Department Division certification and rule making.
SB268-SA2,114,3
1(a) 1. The department division shall, upon application, certify eligible
2applicants as small wineries and renew prior certifications of eligible applicants as
3small wineries.
SB268-SA2,114,114 2. Any winery seeking to become a member of, or to maintain its membership
5in, a cooperative wholesaler may apply to the department division for certification
6as a small winery. If the winery meets the definition of a small winery under this
7section, satisfies the requirement under sub. (2) (a) 3. a., and submits any other
8information that the department division determines is necessary to certify that the
9winery is operating as a small winery and is eligible for membership in a cooperative
10wholesaler, the department division shall certify the winery as a small winery. This
11certification shall remain valid for one year.
SB268-SA2,26hk 12Section 26hk. 125.545 (6) (a) 1. of the statutes, as affected by 2023 Wisconsin
13Act .... (this act), is amended to read:
SB268-SA2,114,1614 125.545 (6) (a) 1. The division shall, upon application, certify eligible
15applicants as small wineries or small manufacturers and renew prior certifications
16of eligible applicants as small wineries or small manufacturers.
SB268-SA2,26hm 17Section 26hm. 125.545 (6) (a) 2m. of the statutes is created to read:
SB268-SA2,114,2518 125.545 (6) (a) 2m. Any manufacturer seeking to become a member of, or to
19maintain its membership in, a cooperative wholesaler may apply to the division for
20certification as a small manufacturer. If the manufacturer meets the definition of
21a small manufacturer under this section and submits any other information that the
22division determines is necessary to certify that the manufacturer is operating as a
23small manufacturer and is eligible for membership in a cooperative wholesaler, the
24division shall certify the manufacturer as a small manufacturer. This certification
25shall remain valid for one year.
SB268-SA2,26hn
1Section 26hn. 125.545 (6) (a) 3. of the statutes is amended to read:
SB268-SA2,115,42 125.545 (6) (a) 3. In certifying any winery under subd. 2., the department
3division shall classify the winery as either a Wisconsin winery or an out-of-state
4winery.
SB268-SA2,26ho 5Section 26ho. 125.545 (6) (a) 3m. of the statutes is created to read:
SB268-SA2,115,86 125.545 (6) (a) 3m. In certifying any manufacturer under subd. 2m., the
7division shall classify the manufacturer as either a Wisconsin manufacturer or an
8out-of-state manufacturer.
SB268-SA2,26hp 9Section 26hp. 125.545 (6) (a) 4. of the statutes is amended to read:
SB268-SA2,115,1310 125.545 (6) (a) 4. The department division shall refuse to certify under this
11paragraph any winery that cannot demonstrate it holds all necessary permits for its
12operations or that the department division finds is otherwise not in full compliance
13with the laws of this state.
SB268-SA2,26hq 14Section 26hq. 125.545 (6) (a) 4. of the statutes, as affected by 2023 Wisconsin
15Act .... (this act), is amended to read:
SB268-SA2,115,1916 125.545 (6) (a) 4. The division shall refuse to certify under this paragraph any
17winery or manufacturer that cannot demonstrate it holds all necessary permits for
18its operations or that the division finds is otherwise not in full compliance with the
19laws of this state.
SB268-SA2,26hr 20Section 26hr. 125.545 (6) (b) of the statutes is amended to read:
SB268-SA2,115,2221 125.545 (6) (b) The department division shall promulgate rules to administer
22and enforce the requirements under this section.
SB268-SA2,26hs 23Section 26hs. 125.545 (7) of the statutes is amended to read:
SB268-SA2,116,224 125.545 (7) Penalties. (a) Any winery that sells or distributes its wine directly
25to a retailer, rather than through a wholesaler or cooperative wholesaler, is subject

1to a fine of not more than $10,000 and revocation of all of its permits by the
2department division under s. 125.12 (5).
SB268-SA2,116,63 (b) Any cooperative wholesaler that provides preferential treatment to a
4Wisconsin winery or discriminates against an out-of-state winery is subject to a fine
5of not more than $10,000 and revocation of its wholesaler's permit by the department
6division under s. 125.12 (5).
SB268-SA2,26ht 7Section 26ht. 125.545 (7) of the statutes, as affected by 2023 Wisconsin Act
8.... (this act), is amended to read:
SB268-SA2,116,129 125.545 (7) Penalties. (a) Any winery or manufacturer that sells or distributes
10its wine intoxicating liquor directly to a retailer, rather than through a wholesaler
11or cooperative wholesaler, is subject to a fine of not more than $10,000 and revocation
12of all of its permits by the division under s. 125.12 (5).
SB268-SA2,116,1713 (b) Any cooperative wholesaler that provides preferential treatment to a
14Wisconsin winery or Wisconsin manufacturer or discriminates against an
15out-of-state winery or out-of-state manufacturer is subject to a fine of not more
16than $10,000 and revocation of its wholesaler's permit by the division under s. 125.12
17(5).
SB268-SA2,26hu 18Section 26hu. 125.55 (1) of the statutes is amended to read:
SB268-SA2,116,2019 125.55 (1) The department division may issue a combination manufacturer's
20and rectifier's permit.
SB268-SA2,26hv 21Section 26hv. 125.56 (2) (a) of the statutes is amended to read:
SB268-SA2,117,222 125.56 (2) (a) The department division shall issue sacramental wine permits
23to organized religious bodies authorizing them to purchase for their own use
24sacramental wine from any permittee under s. 125.52 (1), 125.53 or 125.54. A permit

1under this subsection does not authorize the resale of sacramental wine by the
2permittee.
SB268-SA2,26hw 3Section 26hw. 125.56 (2) (c) of the statutes is amended to read:
SB268-SA2,117,64 125.56 (2) (c) Shipments of sacramental wine shall be conspicuously labeled
5“for sacramental purposes" and shall meet any other requirements the department
6division prescribes by rule.
SB268-SA2,26hx 7Section 26hx. 125.56 (2) (d) of the statutes is amended to read:
SB268-SA2,117,98 125.56 (2) (d) A sacramental wine permit shall be issued free of charge by the
9department division and is not subject to s. 125.04 (11) (a).
SB268-SA2,26hy 10Section 26hy. 125.58 (1) of the statutes is amended to read:
SB268-SA2,118,311 125.58 (1) The department division shall issue out-of-state shippers' permits
12which authorize persons located outside this state to sell or ship intoxicating liquor
13into this state. Except as provided under sub. subs. (4) and (5), intoxicating liquor
14may be shipped into this state only to a person holding a wholesaler's permit under
15s. 125.54 or, if shipped from a manufacturer or rectifier in another state holding a
16permit under this section, to a person holding a manufacturer's or rectifier's permit
17under s. 125.52 or a winery permit under s. 125.53. Except as provided under sub.
18subs. (4) and (5), a separate out-of-state shipper's permit is required for each
19location from which any intoxicating liquor is sold or shipped into this state,
20including the location from which the invoices are issued for the sales or shipments.
21Any person holding an out-of-state shipper's permit issued under this section may
22solicit orders for sales or shipments by the permittee without obtaining the sales
23solicitation permit required by s. 125.65, but every agent, salesperson or other
24representative who solicits orders for sales or shipments by an out-of-state shipper
25shall first obtain a permit for soliciting orders under s. 125.65. No holder of an

1out-of-state shipper's permit issued under this section may sell intoxicating liquor
2in this state or ship intoxicating liquor into this state unless the out-of-state shipper
3is the primary source of supply for that intoxicating liquor.
SB268-SA2,26hz 4Section 26hz. 125.58 (2) of the statutes is renumbered 125.58 (2) (a).
SB268-SA2,26jb 5Section 26jb. 125.58 (2) (b) and (c) of the statutes are created to read:
SB268-SA2,118,166 125.58 (2) (b) 1. Unless the permittee or agent of the permittee appointed under
7s. 125.04 (6) is a resident of this state, or unless the permittee maintains a registered
8agent in this state under s. 180.0501, 180.1507, 183.0105, or 183.1007, a permittee
9under this section shall appoint and continually engage the services of an agent in
10this state to act as agent for the service of process on whom all processes, and any
11action or proceeding against the permittee concerning or arising out of the
12enforcement of any provision of this chapter or ch. 139, may be served in any manner
13authorized by law. That service shall constitute legal and valid service of process on
14the permittee. The permittee shall provide to the division, in the form and manner
15prescribed by the division, the name, address, phone number, and proof of the
16appointment and availability of the agent.
SB268-SA2,118,2317 2. The permittee shall provide notice to the division 30 calendar days before
18termination of the authority of an agent under subd. 1. and shall provide proof to the
19satisfaction of the division of the appointment of a new agent no less than 5 calendar
20days before the termination of an existing agent appointment. In the event an agent
21terminates an agency appointment, the permittee shall notify the division of that
22termination within 5 calendar days and shall include proof to the satisfaction of the
23division of the appointment of a new agent.
SB268-SA2,119,324 3. If a permittee fails to maintain an agent in this state after a permit is issued
25under this section, the permittee is considered to have appointed the department of

1financial institutions as the permittee's agent, and the permittee may be proceeded
2against in courts of this state by service of process upon the department of financial
3institutions.
SB268-SA2,119,54 (c) The application for a permit under this section shall include a provision that
5the permittee agrees to do all of the following:
SB268-SA2,119,76 1. File reports, provide records, and allow inspections and examinations to the
7extent provided in s. 125.025 and ch. 139.
SB268-SA2,119,98 2. Pay the expenses reasonably attributable to inspections and examinations
9made by the division at the premises of the permittee located outside this state.
SB268-SA2,119,1110 3. Accept service of process and consent to jurisdiction in any proceeding in this
11state to enforce the provisions of this chapter or ch. 139.
SB268-SA2,26jc 12Section 26jc. 125.58 (5) of the statutes is created to read:
SB268-SA2,119,1513 125.58 (5) A fulfillment house located outside this state that holds a permit
14under s. 125.23 may ship wine into this state as provided in s. 125.23 and is not
15required to hold an out-of-state shipper's permit under this section.
SB268-SA2,26jd 16Section 26jd. 125.60 (1) of the statutes is amended to read:
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