Section 8.05. Small winery cooperative wholesalers.

 

(1)   Purpose. The purpose of this section is to set forth the requirements for the creation and operation of small winery cooperative wholesalers, under s. 125.545 , Stats.

(2)   Definitions. In this section, and in s. 125.545 , Stats.:

(a) "Member" has the meaning given in s. 125.545 (1) (a) , Stats.

(b) "Out-of-state winery" has the meaning given in s. 125.545 (1) (b) , Stats.

(c) "Purchase on consignment" means to receive, purchase or acquire wine from a member of the small winery cooperative wholesaler for cash or credit for a period of not more than 90 days.

(d) "Retailer" has the meaning given in s. 125.545 (1) (c) , Stats.

(e) "Small winery" has the meaning given in s. 125.545 (1) (d) , Stats.

(f) "Small winery cooperative wholesaler" has the meaning given in s. 125.545 (1) (e) , Stats.

(g) "Wisconsin winery" has the meaning given in s. 125.545 (1) (f) , Stats.

(3)   Creation of small winery cooperative wholesalers.

(a) Three or more individuals, at least one of whom must be a Wisconsin resident and all of which must be owners of small wineries certified by the department under s. 125.545 (6) (a) , Stats., may, with a wholesaler's permit issued under s. 125.54 , Stats., operate in Wisconsin as a small winery cooperative wholesaler.

(b) The application for the wholesaler's permit required under par. (a) shall be filed on the Wisconsin liquor-wine permit application, form AB-115, and shall be submitted to the department within 7 days after the cooperative's articles of incorporation are filed with the department of financial institutions, under the provisions of ch. 185 , Stats.

(c) The agent and principal office of a cooperative wholesaler shall be in Wisconsin.

(d) To provide greater public convenience and service to all areas of Wisconsin, when making a determination on an application for a wholesaler's permit filed under par. (b) , the department shall consider the ability of the cooperative to effectively serve its members and Wisconsin retailers, as indicated by the location of the principal office, the location of the participating wineries, the location of any warehouse or storage facility, requirements for membership as detailed in its bylaws, and any other relevant factors.

(e) The department may not issue a new wholesaler's permit to a cooperative wholesaler before October 1, 2008 or after December 31, 2008, and shall make a determination on an application for a wholesaler's permit in accordance with the requirements of s. Tax 8.61 .

(4)   Authorized activities of small winery cooperative wholesalers.

(a) A cooperative wholesaler may sell, market and distribute wine manufactured, blended, or mixed, and bottled by the members of the cooperative wholesaler.

(b) Within 21 days after filing the articles of incorporation, the cooperative wholesaler shall adopt bylaws and file a copy of the articles and bylaws with the department. The bylaws shall contain all of the following information:

1. Reasonable membership requirements that recognize the cooperative wholesaler's duty to negotiate in good faith with wineries that seek to sell products and to diligently ensure that distribution channels are available for the sale of wine from small wineries.

2. A statement that any applicants meeting such requirements be admitted into the cooperative.

3. A description of the rights and responsibilities of members.

4. The process for the election of the board of directors.

5. The plans for a membership meeting.

6. Whether the cooperative will allow non-members to purchase preferred stock.

(c) A cooperative wholesaler is permitted to purchase wine industry trade goods, including bottles, corks, and other supplies consumed in the bottling and sale of wine, and marketing materials and services, including signs, menu boards, and clothing such as caps and t-shirts. The trade goods may not include any alcohol beverages.

(d) A cooperative wholesaler may provide compensation for reasonable expenses of winery owners and employees, acting as volunteers in the sale and distribution of wine by the cooperative. Reasonable expenses may not include compensation for time spent acting as a volunteer.

(e)

1. The cooperative wholesaler shall provide the department with a biennial report with its application for wholesaler permit renewal. The biennial report shall summarize the sales quantity and product data for all wine and wine industry trade goods sold by the cooperative wholesaler.

2. The department will send a renewal notice to the cooperative wholesaler prior to the time the wholesaler permit reaches its expiration date.

EmR0820 : emerg. cr. eff. 6-26-08; CR 08-065 : cr. Register August 2009 No. 644 , eff. 9-1-09.

Note

Form AB-115 may be obtained by writing to: Wisconsin Department of Revenue, PO Box 8900, Madison, WI 53708-8900. Microsoft Windows NT 6.1.7601 Service Pack 1