Senate Bill No. 225
(By Senator Blatnik)
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[Introduced January 31, 1994; referred to the Committee
on the Judiciary; and then to the Committee on Finance.]
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A BILL to amend chapter sixty of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article two-b, relating to
alcoholic beverages; providing for the elimination of the
state monopoly on wholesale of alcoholic beverages;
divestiture of state responsibility for wholesale of
alcoholic beverages; providing for approval of distributors
of alcoholic beverages; responsibilities of the tax
commissioner; fee for approval; imposition of tax on
wholesale sales; and penalty for violations.
Be it enacted by the Legislature of West Virginia:
That chapter sixty of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article two-b, to read
as follows:
ARTICLE 2B. SALES OF ALCOHOLIC BEVERAGES TO LICENSEES.
§60-2B-1. State monopoly eliminated.
Effective the first day of July, one thousand nine hundred
ninety-four, the sale of alcoholic liquors at wholesale is no
longer a state monopoly.
§60-2B-2. Transition to private wholesalers.
The sale of alcoholic liquors at wholesale by the state
shall terminate on the first day of July, one thousand nine
hundred ninety-four. Effective on that date, the commissioner
shall divest, using the most economically feasible procedures to
ensure that divesting is beneficial to the state, all stock,
supplies, equipment, leases, buildings and real property used in
the wholesale of alcoholic beverages. Retail licensees may
purchase alcoholic beverages at wholesale from any vendor
approved by the tax commissioner for distribution of alcoholic
beverages in this state.
§60-2B-3. Approval of alcoholic beverage distributors; fees.
The tax commissioner shall approve all distributors of
alcoholic beverages to retail licensees in this state. Prior to
doing business, a distributor of alcoholic beverages shall apply
to the tax commissioner for approval. Each application for
approval shall be accompanied by an approval fee of ten thousand
dollars. This fee shall be collected annually from every
approved distributor of alcoholic beverages. If, after diligent
and thorough investigation of the applicants' background,
business practice and moral character, the tax commissioner is
satisfied that an applicant qualifies as an approved distributor,
the tax commissioner shall issue an approval letter and shallauthorize the applicant to distribute alcoholic beverages to
approved retailers in this state.
§60-2B-4. Tax on alcoholic beverages sold at wholesale.
Effective the first day of July, one thousand nine hundred
ninety-four, a tax on the sale of alcoholic beverages at
wholesale, at the rate of six cents on each dollar of sales,
shall be charged and collected by the tax commissioner from every
approved alcoholic beverage distributor.
§60-2B-5. Penalty.
Any person violating the provisions of this article is
guilty of a felony, and, upon conviction thereof, shall be fined
not more than one thousand dollars, or imprisoned in the
penitentiary not less than one year, or both fined and
imprisoned.
NOTE: The purpose of this bill is to eliminate the state
control of the wholesale of alcoholic beverages. By July 1,
1994, the Alcohol Beverage Control Commissioner must divest the
state of warehouses, leases, supplies, equipment and real
property used in the wholesale of alcoholic beverages. The bill
provides that the tax commissioner may approve distributors of
alcoholic beverages in this state. The bill places a tax in an
amount of six cents on each dollar of alcoholic beverages sold at
wholesale and provides a felony penalty for any violation of its
provisions.
This is a new article; therefore, strike-throughs and
underscoring have been omitted.
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