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.

73,26hk Section 26hk. 125.545 (6) (a) 1. of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

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.

73,26hm Section 26hm. 125.545 (6) (a) 2m. of the statutes is created to read:

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.

73,26hn Section 26hn. 125.545 (6) (a) 3. of the statutes is amended to read:

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.

73,26ho Section 26ho. 125.545 (6) (a) 3m. of the statutes is created to read:

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.

73,26hp Section 26hp. 125.545 (6) (a) 4. of the statutes is amended to read:

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.

73,26hq Section 26hq. 125.545 (6) (a) 4. of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

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.

73,26hr Section 26hr. 125.545 (6) (b) of the statutes is amended to read:

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

73,26hs Section 26hs. 125.545 (7) of the statutes is amended to read:

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).

(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).

73,26ht Section 26ht. 125.545 (7) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

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).

(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).

73,26hu Section 26hu. 125.55 (1) of the statutes is amended to read:

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

73,26hv Section 26hv. 125.56 (2) (a) of the statutes is amended to read:

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.

73,26hw Section 26hw. 125.56 (2) (c) of the statutes is amended to read:

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.

73,26hx Section 26hx. 125.56 (2) (d) of the statutes is amended to read:

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).