SB 928 — Relating to manufacture, sale, and distribution of low-proof spirit alcohol products

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee FISCALSubstitute for Senate Bill 928 NOTEBY BySENATORSM SenatorsORRIS, Morris,ULLER, Fuller,ELTON, Helton,UCKER Rucker,, andTAKUBO, TakuboCLEMENTS,ANDH [IntroducedAMILTON [Reported February 12,18, 2026;2026, from the Committee on Finance] CS for SB 928 A BILL to amend and reenact §60-1-5 of the Code of West Virginia, 1931, as amended;

referred to the Committee on Finance] Intr SB 928 2026R4001 A BILL to amend and reenact §60-1-5 of the Code of West Virginia, 1931, as amended;

IntrCS for SB 928 2026R4001 (8) "Distillery" means an establishment where alcoholic liquor other than wine or beer is manufactured or in any way prepared.

(10) "Low-Proof"Low-proof Spiritspirit Alcoholalcohol Products"products" mean any alcoholic liquor beverage drink, other than wine, beer, or nonintoxicating beer, containing one-halfone half of one percent or more of alcohol by volume, but not more than fifteen and one-half percent alcohol by volume obtainedvolume obtained by distillation, mixed with drinkable water, fruit juices, flavoringflavoring, or coloring materials, other alcoholic or non- alcoholic beverages and/oror other ingredients in a solution, which are packaged in containers not to exceed 25 fluid ounces.

(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. of this code and rules promulgated thereunder who actively manages, conducts, and carries on the day-to-day operations of the§11-16-1 applicantet orseq. licensee with full and apparent authority or actual authority to act on behalf of the applicant or licensee.

Suchof dutiesthis includecode butand arerules notpromulgated limitedthereunder to:who actively manages, conducts, and carries 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.

coordinatingSuch staffing;duties include, but are not limited to:

Coordinating staffing;

CS for SB 928 (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 Intr SB 928 2026R4001 specified by §by 11-16-2§11-16-2 of this code.

(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, Thatamusement: 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.

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 CS for SB 928 other restrictions established by that section and the terms of the special license issued thereunder.

Intr SB 928 2026R4001 (19) (20) "Selling" includes solicitation or receipt of orders;

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, peacepeace, 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 CS for SB 928 temperance in the use and consumption thereof.

Intr SB 2026R4001 §60-8B-2.

Definition of Low-Prooflow-proof Spiritspirit Alcoholalcohol Products.products.

"Low-Proof"Low-proof Spiritspirit Alcoholalcohol Products"products" mean any alcoholic liquor beverage drink, other than wine, beer, or nonintoxicating beer, containing 0.5 percent or more of alcohol by volume, but not more than 15.5 percent alcohol by volume obtained by distillation, mixed with drinkable water, fruit juices, flavoring or coloring materials, other alcoholic or non-alcoholic beverages or other ingredients in a solution, which are packaged in containers not to exceed 25 fluid ounces.

Applicability of other Laws;laws;

license to manufacture, sell, and distribute Low-low-proof Proofspirit Spiritalcohol Alcoholproducts. Products.

(a) Manufacture of Low-Prooflow-proof Spiritspirit Alcoholalcohol Products.products.

– 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 Commissionercommissioner thereunder, shall apply to the manufacture of Low-Prooflow-proof Spiritspirit Alcoholalcohol Products.products.

All procedures for obtaining and maintaining a license for the manufacture of Lowlow-proof Proofspirit Spiritalcohol Productsproducts shall comply with the requirements of §60-4-1 et seq.

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

No additional alcoholic liquor license fees shall be charged for the privilege of manufacturing Low-Prooflow-proof Spiritspirit Alcoholalcohol Products.products.

(b) Sales of Low-Prooflow-proof Spiritspirit Alcoholalcohol Product.product.

– Any person or licensee legally authorized to manufacture, distribute, or sell Low-Prooflow-proof Spiritspirit Alcoholalcohol Productsproducts may sell Low-Prooflow-proof Spiritspirit Alcoholalcohol Productsproducts 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.

Provided, That no person or licensee shall be permitted to sell Low-Prooflow-proof Spiritspirit Alcoholalcohol Productsproducts in growlers as defined in §11-16-1§11- CS for SB 928 16-1 et seq.

of this code, and any rules promulgated by the Commissionercommissioner 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 Chapterchapter 60 of this code, are inapplicable Intr SB 928 2026R4001 to sales of Low-Prooflow-proof Spiritspirit Alcoholalcohol Products.products.

No additional license fees shall be charged for the privilege of selling Low-Prooflow- Spiritproof Alcoholspirit Products.alcohol products.

(c) Distribution of Low-Prooflow-proof Spiritspirit Alcoholalcohol Products.products.

– Except as stated in this article, the distribution of Low-Prooflow-proof Spiritspirit Alcoholalcohol Productsproducts shall be administered and carried out in the same manner as proscribed for nonintoxicating beer distribution as set forth in §11-16-1 et seq.

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

Any person or licensee legally authorized to distribute Low-Prooflow-proof Spiritspirit Alcoholalcohol Productsproducts must distribute Low-Prooflow-proof Spiritspirit Alcoholalcohol Productsproducts in the same manner and to the same persons, and subject to the same limitations and conditions, as a license or legal right would authorize him or her to distribute nonintoxicating beer.

No manufacturer or distillery may self-distribute Low-Prooflow-proof Spiritspirit Alcoholalcohol Products.products.

No additional license fees shall be charged for the privilege of distributing Low-Prooflow-proof Spiritspirit Alcoholalcohol Products.products.

rulemakingrule-making authority.

(a) There is hereby levied and imposed on all Low-Prooflow-proof Spiritspirit Alcoholalcohol Productsproducts sold on and after the effective date, by every distillery, or supplier to distributors, there is hereby levied and imposed on all Lowlow-proof Proofspirit Spiritalcohol products sold by distilleries, manufacturers, and suppliers to distributors, a tax of $1.25 per gallon, in like ratio for any partial gallon or other unit of measure.

th (b) Before the 1616th day of each month thereafter, every distillery, supplier, distributor, and direct shipper shall make a written report under oath to the Tax Commissioner and the commissioner showing the identity of the purchasing person, the quantity, label, and alcoholic content of Low-Prooflow-proof Spiritspirit Alcoholalcohol Productsproducts sold by the distillery and supplier to West Virginia distributors or the direct shipper to persons 21 years of age or older who reside in West Virginia CS for SB 928 during the preceding month and at the same time shall pay the tax imposed by this article on the Low-Prooflow-proof Spiritspirit Alcoholalcohol Productsproducts sold to the distributor or to persons 21 years of age or older who reside in West Virginia during the preceding month to the Tax Commissioner.