SB 934 — Relating to low-proof spirit alcohol products

SB934 SFASFAT Queen #1 3-26Childs  7949 Senator Queen moved to amend the bill by striking out everythingthe aftertitle theand enactingsubstituting clausetherefor anda insertingnew intitle, lieuto thereofread theas following:follows:Eng.

ARTICLECom. 1.

GeneralSub. Provisions.

 for §60-1-5.Senate Bill 934—A BILL to amend and reenact §60-1-5 of the Code of West Virginia, 1931, as amended;

Definitions.and to amend the code by adding a new article, designated §60-8B-1, §60-8B-2, §60-8B-3, §60-8B-4, and §60-8B-5, relating to the manufacture, sale, and distribution of low-proof spirit alcohol products;

Fordefining theterms; purposes of this chapter:(1) "Alcohol" means ethyl alcohol whatever its origin and shall include synthetic ethyl alcohol but not denatured alcohol.(2) "Alcoholic liquor" includes alcohol, beer, wine, low-proof spirit alcohol products, and spirits, and any liquid or solid capable of being used as a beverage, but shall not include nonintoxicating beer.(3) "An agency" means a drugstore, grocery store, or general store designated by the commission as a retail distributor of alcoholic liquor for the West Virginia Alcohol Beverage Control Commission.(4) "Beer" means any beverage obtained by the fermentation of barley, malt, hops, or any other similar product or substitute, and containing more alcohol than that of nonintoxicating beer.(5) "Brewery" means an establishment where beer is manufactured or in any way prepared.(6) "Commissioner" or "commission" means the West Virginia Alcohol Beverage Control Commissioner.(7) "Department" means the organization through which the commission exercises powers imposed upon it by this chapter.(8) "Distillery" means an establishment where alcoholic liquor other than wine or beer is manufactured or in any way prepared.(9) "Intoxicated" means a person's faculties are impaired by alcohol or other substance to the point where physical or mental control or both are markedly diminished.(10) "Low-proof spirit alcohol product" means any alcoholic liquor beverage drink, other than wine or beer containing one half of one percent or more of alcohol by volume, but not more than 15.5 percent alcohol by volume (31 proof) obtained by distillation, mixed with drinkable seltzer water, fruit juices, flavoring or coloring materials, other alcoholic or non-alcoholic beverages or other ingredients to create a beverage that is packaged in an aluminum or other metal can only.(10)(11) "Manager" means an individual who is the applicant's or licensee's on-premises employee, member, partner, shareholder, director, or officer who meets the licensure requirements of §11-16-1 et seq.

ofdeclaring thislegislative code andfindings, rulespolicy, promulgated thereunder who actively manages, conducts, and carriesintent; on the day-to-day operations of the applicant or licensee with full and apparent authority or actual authority to act on behalf of the applicant or licensee.

Suchprescribing dutiesmanufacture, include,sales, butand aredistribution notrequirements limitedfor to:low-proof spirit alcohol products;

coordinatingprescribing staffing;taxation amount and methodology for low-proof spirit alcohol products;

reviewingsetting andinternal approvingeffective payroll;date;

ordering and payinggranting forpermissive inventory,rulemaking suchauthority.     AdoptedRejected as nonintoxicating beer, wine, and liquor, as applicable;

and managing security staff, security systems, video and other security equipment;

and any further acts or actions involved in managing the affairs of the business, on behalf of owners, partners, members, shareholders, officers, or directors.(11)(12) "Manufacture" means to distill, rectify, ferment, brew, make, mix, concoct, process, blend, bottle, or fill an original package with any alcoholic liquor.(12)(13) "Manufacturer" means any person engaged in the manufacture of any alcoholic liquor, and among others includes a distiller, a rectifier, a wine maker, and a brewer.(13)(14) "Nonintoxicating beer" means any beverage obtained by the fermentation of barley, malt, hops, or similar products or substitute, and containing not more alcohol than that specified by § 11-16-2 of this code.(14)(15) "Original package" means any closed or sealed container or receptacle used for holding alcoholic liquor.(15)(16) "Person" means an individual, firm, partnership, limited partnership, corporation, or voluntary association.(16)(17) "Powdered alcohol" means an alcohol manufactured in a powder or crystalline form for either direct use or reconstitution as an alcoholic liquor or food.

For purposes of this chapter, powdered alcohol excludes any material intended for industrial purposes.(17)(18) "Public place" means any place, building, or conveyance to which the public has, or is permitted to have access, including restaurants, soda fountains, hotel dining rooms, lobbies, and corridors of hotels and any highway, street, lane, park, or place of public resort or amusement: Provided, That the term "public place" shall not mean or include any of the above-named places or any portion or portions thereof which qualify and are licensed under the provisions of this chapter to sell alcoholic liquors for consumption on the premises: Provided, however, That the term "public place" shall not mean or include any legally demarcated area designated solely for the consumption of beverages and freshly prepared food that directly connects and adjoins any portion or portions of a premise that qualifies and is licensed under the provisions of this chapter to sell alcoholic liquors for consumption thereupon: Provided further, That the term "public place" shall not include a facility constructed primarily for the use of a Division I, II, or III college or university that is a member of the National Collegiate Athletic Association, or its successor, and used as a football, basketball, baseball, soccer, or other Division I, II, or III sports stadium which holds a special license to sell wine pursuant to the provisions of §60-8-3 of this code, in the designated areas of sale and consumption of wine and other restrictions established by that section and the terms of the special license issued thereunder.(18)(19) "Sale" means any transfer, exchange, or barter in any manner or by any means, for a consideration, and shall include all sales made by a principal, proprietor, agent, or employee.(19)(20) "Selling" includes solicitation or receipt of orders;

possession for sale;

and possession with intent to sell.(20)(21) "Spirits" means any alcoholic beverage obtained by distillation and mixed with potable water and other substances in solution and includes brandy, rum, whiskey, cordials, and gin.(21)(22) "State liquor store" means a store established and operated by the commission under this chapter for the sale of alcoholic liquor in the original package for consumption off the premises.(22)(23) "Wine" means any alcoholic beverage obtained by the fermentation of the natural content of fruits, or other agricultural products, containing sugar.(23)(24) "Winery" means an establishment where wine is manufactured or in any way prepared.

§60-8B-1.

Declaration of legislative findings, policy, and intent;

construction.

It is hereby found by the Legislature and declared to be the policy of this state that it is in the public interest to regulate and control the manufacture, sale, distribution, transportation, storage, and consumption of the beverages regulated by this article within this state and that, therefore, the provisions of this article are a necessary, proper, and valid exercise of the police powers of this state and are intended for the protection of the public safety, welfare, health, peace, and morals and are further intended to eliminate, or to minimize to the extent practicable, the evils attendant to the unregulated, unlicensed, and unlawful manufacture, sale, distribution, transportation, storage, and consumption of such beverages and are further intended to promote temperance in the use and consumption thereof.

The Legislature further finds and declares that advertising is essential to the growth of business and job promotion within the state.

In order to further these ends, the provisions of this article and of the rules promulgated pursuant thereto, shall be construed so that the accomplishment of these stated purposes may be effectuated.

§60-8B-2.

Definition of low-proof spirit alcohol products.

"Low-proof spirit alcohol product" means any alcoholic liquor beverage drink, other than wine or beer, containing one half of one percent or more of alcohol by volume, but not more than 15.5 percent alcohol by volume (31 proof) obtained by distillation, mixed with drinkable seltzer water, fruit juices, flavoring or coloring materials, other alcoholic or non-alcoholic beverages or other ingredients to create a beverage that is packaged in an aluminum or other metal can only.

§60-8B-3.

Applicability of other laws;

license to manufacture, sell, and distribute low-proof spirits products.

(a) Manufacture of Low-Proof Spirit Alcohol Products.

— Beginning July 1, 2030, except as stated in this article, all distillery licenses and other requirements for the manufacture of alcoholic liquors set forth in §60-4-2 and §60-4-3a of this code, and any rules promulgated by the Commissioner thereunder, shall apply to the manufacture of low-proof spirit alcohol products.

All procedures for obtaining and maintaining a license for the manufacture of low-proof alcohol spirit products shall comply with the requirements of §60-4-1 et seq.

of this code, and any rules promulgated by the commissioner thereunder.

No additional alcoholic liquor license fees shall be charged for the privilege of manufacturing low-proof spirit alcohol products.(b) Sales of low-proof spirit product.

— Beginning July 1, 2030, any person or licensee legally authorized to manufacture, distribute, or sell low-proof spirit products may sell low-proof spirit products in the same manner and to the same persons, and subject to the same limitations and conditions, as such license or legal right authorizes him or her to manufacture, distribute, or sell nonintoxicating beer as set forth in §11-16-1 et seq.

of this code:

Provided, That no person or licensee shall be permitted to sell low-proof spirit alcohol products in growlers as defined in §11-16-1 et seq.

of this code, and any rules promulgated by the commissioner thereunder.

The provisions of §60-4-3 of this code, which require that sales by a manufacturer of alcoholic liquors may only be sold to the West Virginia Alcohol Beverage Control Commissioner and to wholesalers and retailers licensed as provided in chapter 60 of this code, are inapplicable to sales of low-proof spirit alcohol products.

No additional license fees shall be charged for the privilege of selling low-proof spirit alcohol products.

(c) Distribution of low-proof spirit alcohol products.