HB2450: Alcoholic beverage control; creates new restricted wholesale wine license.

Chief Patron

Chris Saxman (R-20)
Staunton, VA
Served: 2002–

Progress

	Introduced
	Passed Committee
	Passed House
	Passed Senate
	Signed by Governor
	Became Law

Status

04/04/2007: enacted

View Entire History

01/09/2007 Committee
01/09/2007 Prefiled and ordered printed; offered 01/10/07 070824496
01/09/2007 Referred to Committee on General Laws
01/12/2007 Assigned GL sub: #3 ABC/Gaming (Gear)
01/30/2007 Committee substitute printed 070908496-H1
01/31/2007 Read first time
02/01/2007 Read second time
02/01/2007 Committee substitute agreed to 070908496-H1
02/01/2007 Emergency clause added
02/01/2007 Engrossed by House - committee substitute HB2450H1
02/02/2007 Read third time and passed House BLOCK VOTE (97-Y 0-N)
02/02/2007 Communicated to Senate
02/05/2007 Constitutional reading dispensed
02/05/2007 Referred to Committee on Rehabilitation and Social Services
02/07/2007 Impact statement from DPB (HB2450H1)
02/12/2007 Constitutional reading dispensed (40-Y 0-N)
02/12/2007 VOTE: (40-Y 0-N) (see vote tally)
02/13/2007 Read third time
02/13/2007 Reading of amendment waived
02/13/2007 Committee amendment agreed to
02/13/2007 Passed by for the day
02/14/2007 Read third time
02/14/2007 Engrossed by Senate as amended
02/14/2007 Reconsideration of Senate passage agreed to by Senate (40-Y 0-N)
02/14/2007 Passed Senate with amendment (40-Y 0-N)
02/14/2007 VOTE: (40-Y 0-N) (see vote tally)
02/15/2007 Placed on Calendar
02/16/2007 Senate amendment agreed to by House (98-Y 0-N)
02/22/2007 Enrolled
02/22/2007 Bill text as passed House and Senate (HB2450ER)
02/23/2007 Signed by Speaker
02/24/2007 Signed by President
03/05/2007 Impact statement from DPB (HB2450ER)
03/26/2007 Governor's recommendation received by House
03/27/2007 Governor's substitute printed 070441496-H2
04/03/2007 Placed on Calendar
04/04/2007 Enacted, Chapter (effective 4/4/07)
04/04/2007 House concurred in Governor's recommendation (99-Y 0-N)
04/04/2007 VOTE: ADOPTION (99-Y 0-N) (see vote tally)
04/04/2007 G Governor's recommendation adopted
04/04/2007 Reenrolled
04/04/2007 Reenrolled bill text (HB2450ER2)
04/04/2007 Signed by Speaker as reenrolled
04/04/2007 Signed by President as reenrolled
04/04/2007 Enacted, Chapter 870 (effective 4/4/07)
04/11/2007 G Acts of Assembly Chapter text (CHAP0870)

Summary

Alcoholic beverage control; nonresident winery distributor license. Creates a new nonresident winery distributor license that authorizes the licensee to sell and deliver the wine produced by the licensee, in accordance with ABC Board regulations, in closed containers, to (i) persons licensed to sell the wine at retail for the purpose of resale, § 4.1-326 notwithstanding, (ii) the Board, and (iii) persons in Virginia to whom alcoholic beverages may be lawfully sold. The bill provides that, for purposes of § 4.1-234 and Chapter 6 (§ 58.1-600 et seq.) of Title 58.1, each delivery of wine by such licensee to a consumer or a retail licensee shall constitute a sale in Virginia. Licensees are required to collect the taxes due to the Commonwealth and remit any excise taxes monthly to the Board and any sales tax to the Department of Taxation. The bill defines "nonresident winery distributor" as any winery located outside the Commonwealth and licensed as such in the state where the winery is located and whose total wine distribution to all Virginia licensees does not exceed 3,000 cases in any calendar year. The bill also grants these same privileges to certain winery and farm winery licensees. The bill also requires the ABC Board to quarterly audit and inspect all licensees with the privilege of self-distribution to ensure they meet the requirements for the license. The bill sets the state license tax for this new license and requires the ABC Board to adopt emergency regulations to implement the provisions of the bill.

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Comments

Tracey Linkous writes:

I'm very concerned about the crisis facing the Virginia wine industry in our Commonwealth. Not only from the obvious perspective of the winery owners, but from a personal perspective as well. We have nearly 120 wineries in Virginia and I’d put the wines of many of them up against the best that the West Coast states have to offer. They’re great products and I enjoy being able to share them with out-of-state visitors as I brag on our growing presence as a destination for wine in this country.

What causes my concern is the legislation passed last year, albeit forced by a court ruling, that took away the wineries’ right to self-distribute their products. If a small winery can’t sell direct to stores and restaurants, we all lose. The winery loses money, and the owners and employees of that winery have their livelihoods at stake. Also, the Commonwealth of Virginia loses money, because there are fewer outlets selling a fine, competitive product that brings visitors to this region. And, selfishly, folks like me lose out because I don’t get to enjoy and share one of the finest agricultural products on the East Coast.

So, I’d like to ask all of you to support the legislation in the House by Delegate Chris Saxman and in the Senate by Senator John Watkins. The bills would restore the right of wineries to self-distribute up to a limit of 3,000 cases annually. This would apply to both in-state and out-of-state wineries. It would ensure that the little guys don’t get shut out of business and would enable them to grow at a reasonable rate and get to the point where they would need an independent distributor. These bills are fair to everyone.

Tracey Linkous
Albemarle County Resident

Posted 19 months ago. #