SB332: Bill Text

SB332,225 Section 225. 125.545 (1) (ar) of the statutes is created to read:

SB332,,786 125.545 (1) (ar) “Out-of-state manufacturer” means a manufacturer or rectifier of intoxicating liquor that is located in a state other than this state.

SB332,226 Section 226. 125.545 (1) (cm) of the statutes is created to read:

SB332,,788 125.545 (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.

SB332,227 Section 227. 125.545 (1) (d) of the statutes is amended to read:

SB332,,790 125.545 (1) (d) “Small winery” means any winery that produces and bottles less than 25,000 50,000 gallons of wine in a calendar year.

SB332,228 Section 228. 125.545 (1) (e) of the statutes is amended to read:

SB332,,792 125.545 (1) (e) “Small winery cooperative wholesaler” or “cooperative wholesaler” means an entity established under this section.

SB332,229 Section 229. 125.545 (1) (em) of the statutes is created to read:

SB332,,794 125.545 (1) (em) “Wisconsin manufacturer” means a manufacturer or rectifier operating under a permit issued under s. 125.52.

SB332,230 Section 230. 125.545 (2) (a) 1. of the statutes is amended to read:

SB332,,796 125.545 (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.

SB332,231 Section 231. 125.545 (2) (a) 3. b. of the statutes is amended to read:

SB332,,798 125.545 (2) (a) 3. b. The small winery is certified by the department division under sub. (6) (a) as a small winery.

SB332,232 Section 232. 125.545 (2) (a) 4. of the statutes is created to read:

SB332,,800 125.545 (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.

SB332,233 Section 233. 125.545 (2) (b) of the statutes is amended to read:

SB332,,802 125.545 (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.

SB332,234 Section 234. 125.545 (2) (c) of the statutes is amended to read:

SB332,,804 125.545 (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.

SB332,235 Section 235. 125.545 (3) (a) 1. of the statutes is amended to read:

SB332,,806 125.545 (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.

SB332,236 Section 236. 125.545 (3) (a) 2. of the statutes is amended to read:

SB332,,808 125.545 (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 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.

SB332,237 Section 237. 125.545 (3) (a) 2m. of the statutes is created to read:

SB332,,810 125.545 (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.

SB332,238 Section 238. 125.545 (3) (b) of the statutes is amended to read:

SB332,,812 125.545 (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.

SB332,,813 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.

SB332,,814 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.

SB332,,815 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.

SB332,239 Section 239. 125.545 (3) (c) of the statutes is amended to read:

SB332,,817 125.545 (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.

SB332,240 Section 240. 125.545 (4) of the statutes is amended to read:

SB332,,819 125.545 (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.

SB332,241 Section 241. 125.545 (5) of the statutes is amended to read:

SB332,,821 125.545 (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.

SB332,242 Section 242. 125.545 (6) (title) and (a) 1. and 2. of the statutes are amended to read:

SB332,,823 125.545 (6) (title) Department Division certification and rule making.

SB332,,824 (a) 1. The department 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.

SB332,,825 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.

SB332,243 Section 243. 125.545 (6) (a) 2m. of the statutes is created to read:

SB332,,827 125.545 (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.

SB332,244 Section 244. 125.545 (6) (a) 3. of the statutes is amended to read:

SB332,,829 125.545 (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.

SB332,245 Section 245. 125.545 (6) (a) 3m. of the statutes is created to read:

SB332,,831 125.545 (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.

SB332,246 Section 246. 125.545 (6) (a) 4. of the statutes is amended to read:

SB332,,833 125.545 (6) (a) 4. The department 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 department division finds is otherwise not in full compliance with the laws of this state.

SB332,247 Section 247. 125.545 (6) (b) of the statutes is amended to read:

SB332,,835 125.545 (6) (b) The department division shall promulgate rules to administer and enforce the requirements under this section.

SB332,248 Section 248. 125.545 (7) of the statutes is amended to read:

SB332,,837 125.545 (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 department division under s. 125.12 (5).

SB332,,838 (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 department division under s. 125.12 (5).

SB332,249 Section 249. 125.55 (1) of the statutes is amended to read:

SB332,,840 125.55 (1) The department division may issue a combination manufacturer’s and rectifier’s permit.

SB332,250 Section 250. 125.56 (2) (a) of the statutes is amended to read:

SB332,,842 125.56 (2) (a) The department division 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.

SB332,251 Section 251. 125.56 (2) (c) of the statutes is amended to read:

SB332,,844 125.56 (2) (c) Shipments of sacramental wine shall be conspicuously labeled “for sacramental purposes” and shall meet any other requirements the department division prescribes by rule.

SB332,252 Section 252. 125.56 (2) (d) of the statutes is amended to read:

SB332,,846 125.56 (2) (d) A sacramental wine permit shall be issued free of charge by the department division and is not subject to s. 125.04 (11) (a).

SB332,253 Section 253. 125.58 (1) of the statutes is amended to read:

SB332,,848 125.58 (1) The department division 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. subs. (4) and (5), 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. subs. (4) and (5), 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.

SB332,254 Section 254. 125.58 (2) of the statutes is renumbered 125.58 (2) (a).

SB332,255 Section 255. 125.58 (2) (b) and (c) of the statutes are created to read:

SB332,,851 125.58 (2) (b) 1. Unless the permittee or agent of the permittee appointed under s. 125.04 (6) is a resident of this state, or unless the permittee maintains a registered agent in this state under s. 180.0501, 180.1507, 183.0105, or 183.1007, a permittee under this section shall appoint and continually engage the services of an agent in this state to act as agent for the service of process on whom all processes, and any action or proceeding against the permittee concerning or arising out of the enforcement of any provision of this chapter or ch. 139, may be served in any manner authorized by law. That service shall constitute legal and valid service of process on the permittee. The permittee shall provide to the division, in the form and manner prescribed by the division, the name, address, phone number, and proof of the appointment and availability of the agent.

SB332,,852 2. The permittee shall provide notice to the division 30 calendar days before termination of the authority of an agent under subd. 1. and shall provide proof to the satisfaction of the division of the appointment of a new agent no less than 5 calendar days before the termination of an existing agent appointment. In the event an agent terminates an agency appointment, the permittee shall notify the division of that termination within 5 calendar days and shall include proof to the satisfaction of the division of the appointment of a new agent.

SB332,,853 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.

SB332,,854 (c) The application for a permit under this section shall include a provision that the permittee agrees to do all of the following:

SB332,,855 1. File reports, provide records, and allow inspections and examinations to the extent provided in s. 125.025 and ch. 139.

SB332,,856 2. Pay the expenses reasonably attributable to inspections and examinations made by the division at the premises of the permittee located outside this state.

SB332,,857 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.

SB332,256 Section 256. 125.58 (5) of the statutes is created to read:

SB332,,859 125.58 (5) A fulfillment house located outside this state that holds a permit under s. 125.23 may ship wine into this state as provided in s. 125.23 and is not required to hold an out-of-state shipper’s permit under this section.

SB332,257 Section 257. 125.60 (1) of the statutes is amended to read:

SB332,,861 125.60 (1) The department division 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.

SB332,258 Section 258. 125.61 (1) of the statutes is amended to read:

SB332,,863 125.61 (1) The department division 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 division that they use alcohol for medicinal purposes.

SB332,259 Section 259. 125.61 (3) of the statutes is amended to read:

SB332,,865 125.61 (3) Shipments of medicinal alcohol shall be conspicuously labeled “for medicinal purposes” and shall meet other requirements which the department division prescribes by rule.

SB332,260 Section 260. 125.61 (4) of the statutes is amended to read:

SB332,,867 125.61 (4) A medicinal permit shall be issued free of charge by the department division and is not subject to s. 125.04 (11) (a).

SB332,261 Section 261. 125.62 (1) of the statutes is amended to read:

SB332,,869 125.62 (1) The department division 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 division that they use alcohol for industrial purposes.

SB332,262 Section 262. 125.62 (3) of the statutes is amended to read:

SB332,,871 125.62 (3) Shipments of industrial alcohol shall be conspicuously labeled “for industrial purposes” and shall meet other requirements which the department division prescribes by rule.

SB332,263 Section 263. 125.63 (1) of the statutes is amended to read:

SB332,,873 125.63 (1) The department division 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 division that they use wine for industrial purposes.