HB3146 HFA Howell 2-27 #1

Hubbard  3192

Delegate Howell moved to amend the bill on page 1, after the enacting clause, by striking out the remainder of the bill and inserting in lieu thereof the following:

            “article 3A. sales by retail liquor licensees.

§60-3A-17. Wholesale prices set by commissioner; retail licensees to purchase liquor from state; transportation and storage; method of payment; requiring a minimum amount of liquor purchases; removing liquor inventory square footage requirements; special or prepaid orders through retail licensees.

(a) The commissioner shall fix wholesale prices for the sale of liquor, other than wine, to retail licensees. The commissioner shall sell liquor, other than wine, to retail licensees according to a uniform pricing schedule. The commissioner shall obtain, if possible, upon request, any liquor requested by a retail licensee and those permitted to manufacture and sell liquor pursuant to §60-4-3 of this code.

(b) Wholesale prices shall be established in order to yield a net profit for the General Revenue Fund of not less than $6,500,000 annually on an annual volume of business equal to the average for the past three years. The net revenue derived from the sale of alcoholic liquors shall be deposited into the General Revenue Fund in the manner provided in §60-3-17 of this code.

(c) Notwithstanding any provision of this code to the contrary, the commissioner shall specify the maximum wholesale markup percentage which may be applied to the prices paid by the commissioner for all liquor, other than wine, in order to determine the prices at which all liquor, other than wine, will be sold to retail licensees. A retail licensee shall purchase all liquor, other than wine, for resale in this state only from the commissioner, and the provisions of §60-6-12 and §60-6-13 of this code shall not apply to the transportation of the liquor. Beginning July 1, 2020, a retail licensee must purchase at least 200 of the available stock keeping units (“SKUs”) of liqour the commissioner lists as West Virginia product: Provided, That a retail licensee shall purchase wine from a wine distributor who is duly licensed under §60-8-1 et seq. of this code. All liquor, other than wine, purchased by retail licensees shall be stored in the state at the retail outlet or outlets operated by the retail licensee: Provided, however, That the commissioner, in his or her discretion, may upon written request permit a retail licensee to store liquor at a site other than the retail outlet or outlets.

(d) The sale of liquor by the commissioner to retail licensees shall be paid by electronic funds transfer which shall be initiated by the commissioner on the business day following the retail licensees order or by money order, certified check or cashier’s check which shall be received by the commissioner at least 24 hours prior to the shipping of the alcoholic liquors: Provided, That if a retail licensee posts with the commissioner an irrevocable letter of credit or bond with surety acceptable to the commissioner from a financial institution acceptable to the commissioner guaranteeing payment of checks, then the commissioner may accept the retail licensee's checks in an amount up to the amount of the letter of credit.

(e) (1) A retail licensee may not sell liquor to persons licensed under the provisions of §60-7-1 et seq. of this code at less than 110 115 percent of the retail licensee’s cost as defined in §47-11A-6 of this code.

(2) A retail licensee may not sell liquor to the general public at less than 110 115 percent of the retail licensee’s cost as defined in §47-11A-6 of this code.

(f)  Beginning July 1, 2020, a retail licensee will not be required to have a particular amount of square footage devoted to the sale of liquor: Provided, That a retail licensee have enough shelf or display space to display at least one of each SKUs offered for sale to its patrons.

(g) No special order or prepaid order of liquor from a retail licensee attempting to procure a liquor product for a licensee licensed under §60-7-1 et seq. of this code or a patron may be denied. The commissioner may supply the order through inventor in the warehouse. If the liquor requested by the special or prepaid order is not in stock at the warehouse in this state, the commissioner must make reasonable attempts to procure the special or prepaid order for the retail licensee.

Adopted

Rejected