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

Introduced By

Del. Chris Saxman (R-Staunton) with support from 24 copatrons, whose average partisan position is:

Those copatrons are Del. Watkins Abbitt (I-Appomattox), Del. Rob Bell (R-Charlottesville), Del. Kathy Byron (R-Lynchburg), Del. Vince Callahan (R-McLean), Del. Anne Crockett-Stark (R-Wytheville), Del. Frank Hargrove (R-Glen Allen), Del. Chris Jones (R-Suffolk), Del. Steve Landes (R-Weyers Cave), Del. Matt Lohr (R-Harrisonburg), Del. Bob Marshall (R-Manassas), Del. Danny Marshall (R-Danville), Del. Joe May (R-Leesburg), Del. Chris Peace (R-Mechanicsville), Del. David Poisson (D-Sterling), Del. Lacey Putney (I-Bedford), Del. Tom Rust (R-Herndon), Del. Ed Scott (R-Culpeper), Del. Bob Tata (R-Virginia Beach), Del. David Toscano (D-Charlottesville), Del. Lee Ware (R-Powhatan), Del. Onzlee Ware (D-Roanoke), Del. Tommy Wright (R-Victoria), Sen. Bill Carrico (R-Grayson), Sen. Robert Hurt (R-Chatham)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


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. Read the Bill »


04/04/2007: enacted


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


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