Wis. Stat. § 125.545 — WI Code / Chapter 125 / Section 125.545
Section 125.545
Status: in_force

(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.

(3) Authorization and activities.

(a)

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.

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. 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.

2m. The division may issue new wholesalers’ permits to cooperative wholesalers after January 1, 2025, but not later than August 1, 2025, 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.

3. No cooperative wholesaler may operate in this state without a wholesaler’s permit.

(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 intoxicating liquor. Except as provided in subd. 3. , a cooperative wholesaler may not sell or distribute any alcohol beverages, or any other product, except intoxicating liquor.

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

3. A cooperative wholesaler may purchase ancillary industry trade goods such as bottles, corks, and other supplies used by wineries or manufacturers in the bottling and sale of intoxicating liquor if such trade goods do not include any alcohol beverages. Any 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.

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.

(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 .

(4) Exclusive distribution. A member of a cooperative wholesaler may make its 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 intoxicating liquor directly to any other wholesaler or directly to a retailer.

(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 division, in the form and manner prescribed by the division by rule, a biennial report that includes detailed information on its members, board of directors, and sale and distribution activities.

(6) Division certification and rule making.

(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.

2. Any winery 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 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 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 division shall certify the winery as a small winery. This certification shall remain valid for one year.

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.

3. In certifying any winery under subd. 2. , the division shall classify the winery as either a Wisconsin winery or an out-of-state winery.

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.

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.

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

(7) Penalties.

(a) Any winery or manufacturer that sells or distributes its 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) .

History: 2007 a. 85 ; 2011 a. 175 ; 2023 a. 73 .