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125.535(3)(a)3.3. A winery license, permit, or other authorization issued to the winery by any state from which the winery will ship wine into this state.
125.535(3)(a)4.4. A federal basic permit for a winery under 27 USC 203 and 204.
125.535(3)(b)(b) A winery located outside of this state is eligible for a direct wine shipper’s permit under par. (a) 3. or 4. if all of the following apply:
125.535(3)(b)1.1. The winery holds a valid business tax registration certificate issued under s. 73.03 (50).
125.535(3)(b)2.2. The winery submits to the division, with any initial application or renewal for a certificate under s. 73.03 (50) or a permit under par. (a) 3. or 4., a copy of any current license, permit, or authorization issued to the winery by the state from which the winery will ship wine into this state or the winery’s federal basic permit.
125.535(3)(b)3.3. The winery satisfies all requirements under par. (d).
125.535(3)(c)(c) Notwithstanding s. 125.04 (5) (a), natural persons obtaining direct wine 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 (5) (a) 2. and (c), an agent appointed under s. 125.04 (6) by a corporation or limited liability company obtaining a direct wine shipper’s permit is not required to be a resident of this state.
125.535(3)(d)1.1. 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, [s. 180.0501, 180.1507, 183.0115, or 183.0903,] 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.
125.535 NoteNOTE: The correct cross-references are shown in brackets. Corrective legislation is pending.
125.535(3)(d)2.2. 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.
125.535(3)(d)3.3. 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.
125.535(3)(e)(e) The application for a permit under this section shall include a provision that the permittee agrees to do all of the following:
125.535(3)(e)1.1. File reports, provide records, and allow inspections and examinations to the extent provided in s. 125.025 and ch. 139.
125.535(3)(e)2.2. Pay the expenses reasonably attributable to inspections and examinations made by the division at any premises of the permittee located outside this state.
125.535(3)(e)3.3. Accept service of process and consent to jurisdiction in any proceeding in this state to enforce the provisions of this chapter or ch. 139.
125.535(4)(4)Labels. Containers of wine shipped to an individual in this state under this section shall be clearly labeled to indicate that the package may not be delivered to an underage person or to an intoxicated person.
125.535(5)(5)Restrictions. No individual may resell, or use for a commercial purpose, wine received by the individual that is shipped under authority of this section.
125.535(6)(6)Annual limit. No individual in this state may receive more than 108 liters of wine annually shipped under authority of this section. Each individual shall be responsible for compliance with this annual limit. An individual who violates this annual limit is subject to s. 125.11 (1). This subsection does not apply to purchases made under a permit issued under s. 125.61.
125.535(7)(7)Shipments through fulfillment house; common carriers.
125.535(7)(a)(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.
125.535(7)(b)(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.
Effective date noteNOTE: Sub. (7) is created eff. 1-1-25 by 2023 Wis. Act 73.
125.535 HistoryHistory: 2007 a. 85; 2023 a. 73.
125.54125.54Wholesalers’ permits.
125.54(1)(1)Authorized activities. The 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).
125.54(2)(2)Persons eligible. Except as provided under s. 125.69, a wholesaler’s permit 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 foreign corporation, a foreign limited liability company or 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 eligible for a permit under this section.
125.54(3)(3)Taste samples on 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. 125.51 (2) (am) or 125.69 (9).
125.54(5)(5)Sales area. No wholesaler may sell any intoxicating liquor before filing with the 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 division of any change in the area within 7 days of the effective date of the change.
125.54(6)(6)Multiple permits. Multiple wholesalers’ permits may be issued to any one person. In each application for a wholesaler’s permit, the applicant shall state whether application has been made for any other wholesaler’s permit and shall identify any other wholesaler’s permit held by the applicant.
125.54(7)(7)Bona fide wholesalers.
125.54(7)(a)1.1. The premises described in a permit issued under this section shall be capable of warehousing intoxicating liquor. Any intoxicating liquor sold by the permittee shall be physically unloaded at the premises described in the permit, or at any warehouse premises for which the permittee under this section also holds a permit issued under s. 125.19, prior to being delivered to a retail licensee or permittee or to another wholesaler.
125.54(7)(a)2.2. A permittee under this section shall annually sell and deliver intoxicating liquor to at least 10 retail licensees or permittees that do not have an interest in each other or in the permittee under this section. The division shall not issue a permit under this section unless the applicant represents to the 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.
125.54(7)(b)(b) No intoxicating liquor retail licensee or permittee may receive a benefit from a violation under par. (a) with knowledge of the circumstances giving rise to the violation.
125.54(7)(c)1.1. A wholesaler who violates this subsection shall be fined not more than $10,000. In addition, a court shall order the wholesaler to forfeit an amount equal to any profit gained by the wholesaler or by a retail licensee or permittee that violates par. (b), or by both, resulting from the violation, and the court shall further order that the wholesaler’s permit be revoked.
125.54(7)(c)2.2. A court shall order a retail licensee or permittee who violates this subsection to forfeit an amount equal to any profit gained by the retail licensee or permittee resulting from the violation, and the court shall further order that the retail license or permit be revoked.
125.54(7)(c)3.3. This paragraph shall not affect the authority of any municipality or the division to revoke, suspend, or refuse to renew or issue a license or permit under s. 125.12.
125.54(7)(d)(d) The division shall promulgate rules to administer and enforce the requirements under this subsection. The rules shall ensure coordination between the 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 division personnel generally familiar with activities of intoxicating liquor wholesalers. The 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 division of such warehouse facilities.
125.54(7)(e)(e) This subsection does not apply to a cooperative wholesaler under s. 125.545.
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-referenceCross-reference: See also s. Tax 8.22, Wis. adm. code.
125.54 AnnotationSection 176.05 (1a) (b) [now sub. (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.
125.545125.545Small cooperative wholesalers.
125.545(1)(1)Definitions. In this section:
Effective date noteNOTE: Section 125.545 (title) is shown as amended eff. 1-1-25 by 2023 Wis. Act 73. Prior to 1-1-25 it reads:
125.545 Note125.545 Small winery cooperative wholesalers.
125.545(1)(a)(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.
Effective date noteNOTE: Par. (a) is shown as amended eff. 1-1-25 by 2023 Wis. Act 73. Prior to 1-1-25 it reads:
Effective date text(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)(ar)(ar) “Out-of-state manufacturer” means a manufacturer or rectifier of intoxicating liquor that is located in a state other than this state.
Effective date noteNOTE: Par. (ar) is created eff. 1-1-25 by 2023 Wis. Act 73.
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)(cm)(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.
Effective date noteNOTE: Par. (cm) is created eff. 1-1-25 by 2023 Wis. Act 73.
125.545(1)(d)(d) “Small winery” means any winery that produces and bottles less than 50,000 gallons of wine in a calendar year.
Effective date noteNOTE: Par. (d) is shown as amended eff. 1-1-25 by 2023 Wis. Act 73. Prior to 1-1-25 it reads:
Effective date text(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 cooperative wholesaler” or “cooperative wholesaler” means an entity established under this section.
Effective date noteNOTE: Par. (e) is shown as amended eff. 1-1-25 by 2023 Wis. Act 73. Prior to 1-1-25 it reads:
Effective date text(e) “Small winery cooperative wholesaler” or “cooperative wholesaler” means an entity established under this section.
125.545(1)(em)(em) “Wisconsin manufacturer” means a manufacturer or rectifier operating under a permit issued under s. 125.52.
Effective date noteNOTE: Par. (em) is created eff. 1-1-25 by 2023 Wis. Act 73.
125.545(1)(f)(f) “Wisconsin winery” means a winery operating under a permit issued under s. 125.53.
125.545(2)(2)Creation and organization.
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 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 intoxicating liquor manufactured, blended, or mixed, and also bottled, by its members.
Effective date noteNOTE: Subd. 1. is shown as amended eff. 1-1-25 by 2023 Wis. Act 73. Prior to 1-1-25 it reads:
Effective date text1. 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)(a)3.a.a. The small winery holds a direct shipper’s permit under s. 125.535.
125.545(2)(a)3.b.b. The small winery is certified by the division under sub. (6) (a) as a small winery.
Effective date noteNOTE: Subd. 3. b. is shown as amended eff. 1-1-25 by 2023 Wis. Act 73. Prior to 1-1-25 it reads:
Effective date textb. The small winery is certified by the department under sub. (6) (a) as a small winery.
125.545(2)(a)4.4. 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.
Effective date noteNOTE: Subd. 4. is created eff. 1-1-25 by 2023 Wis. Act 73.
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 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.
Effective date noteNOTE: Par. (b) is shown as amended eff. 1-1-25 by 2023 Wis. Act 73. Prior to 1-1-25 it reads:
Effective date text(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 intoxicating liquor to retailers and other wholesalers in the manner authorized under this section.
Effective date noteNOTE: Par. (c) is shown as amended eff. 1-1-25 by 2023 Wis. Act 73. Prior to 1-1-25 it reads:
Effective date text(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)(3)Authorization and activities.
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 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 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.
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2021-22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on November 8, 2024. Published and certified under s. 35.18. Changes effective after November 8, 2024, are designated by NOTES. (Published 11-8-24)