Wis. Admin. Code § Tax 7.43 — Small cooperative wholesalers

Tax 7.43(1) (1) Purpose. The purpose of this section is to set forth the requirements for the creation and operation of small cooperative wholesalers, under s. 125.545 , Stats.

Tax 7.43(2) (2) Bylaws for cooperative wholesalers. Bylaws filed by a cooperative wholesaler shall contain all the following information:

Tax 7.43(2)(a) (a) Membership requirements that recognize the cooperative wholesaler’s duty to negotiate in good faith with manufacturers, rectifiers, and wineries that seek to sell products.

Tax 7.43(2)(b) (b) Membership requirements that recognize the cooperative wholesaler’s duty to diligently ensure that distribution channels are available for the sale of intoxicating liquor from a small winery and a small manufacturer.

Tax 7.43(2)(c) (c) A statement that an applicant meeting the requirements be admitted into the cooperative.

Tax 7.43(2)(d) (d) A description of the rights and responsibilities of a member.

Tax 7.43(2)(e) (e) The process for the election of the board of directors.

Tax 7.43(2)(f) (f) The plans for a membership meeting.

Tax 7.43(2)(g) (g) Whether the cooperative will allow a nonmember to purchase preferred stock.

Tax 7.43(3) (3) Submission of application for cooperative wholesalers. The bylaws created under s. 125.545 (3) (a) 1. , Stats., and that contain the information outlined in sub. (2) , shall be submitted to the division with the application for a wholesaler’s permit .

Tax 7.43(4) (4) Interest restrictions. A cooperative wholesaler may provide reimbursement for necessary and ordinary business expenses of manufacturer, rectifier, and winery owners and employees acting as volunteers for activities related to the sale and distribution of intoxicating liquor by the cooperative. Reimbursement for necessary and ordinary business expenses may not include compensation for time spent acting as a volunteer.

Tax 7.43(5) (5) Renewal of cooperative wholesaler permit. The cooperative wholesaler shall provide the division with a biennial report with its application for wholesaler permit renewal. The biennial report shall summarize the sales quantity and product data for all intoxicating liquor industry trade goods sold by the cooperative wholesaler.