Allowing retail liquor licensees to wholesale certain low-proof alcohol to class A and class B retailers

SB 1049 Text

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Senate Bill 1049 History

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Key:
Green
= existing Code.
Red
= new code to be enacted

WEST VIRGINIA LEGISLATURE
2026
REGULAR SESSION
Introduced
Senate Bill 1049
By Senator Woodrum
[Introduced February 21, 2026; referred
to the Committee on Finance]
A BILL to amend and reenact §60-1-5 of the Code of West Virginia, 1931, as amended; and to amend the code by adding a new article, designated §60-8B-1, §60-8B-2, and §60-8B-3, relating to the sale and distribution of ready-to-drink, low-proof distilled alcohol products; defining terms; declaring legislative findings and intent; authorizing retail liquor licensees to act as wholesalers of ready-to-drink, low-proof distilled alcohol products to Class A and Class B licensees for direct sale to consumers; establishing maximum markup for such wholesale products; authorizing liquor retailers under certain circumstances, to deliver ready-to-drink, low-proof distilled alcohol products to Class A and Class B licensees for direct sale to consumers; establishing separate annual fees for retail liquor licensees wholesaling and delivering ready-to-drink, low-proof distilled alcohol products; prescribing sales and distribution requirements for low-proof alcohol products; and authorizing rule-making authority.
Be it enacted by the Legislature of West Virginia:

ARTICLE 1. GENERAL PROVISIONS.

§60-1-5. Definitions.

For the 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, 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)
"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 applicant or licensee with full and apparent authority or actual authority to act on behalf of the applicant or licensee.
Such

These
duties include but are not limited to: coordinating staffing; reviewing and approving payroll; ordering and paying for inventory, such 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)
"Manufacture" means to distill, rectify, ferment, brew, make, mix, concoct, process, blend, bottle, or fill an original package with any alcoholic liquor.
(12)
"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)
"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)
"Original package" means any closed or sealed container or receptacle used for holding alcoholic liquor.
(15)
"Person" means an individual, firm, partnership, limited partnership, corporation, or voluntary association.
(16)
"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)
"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

may
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

may
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

may
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 o
f
§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.
"
Ready To Drink Low-Proof Distilled Alcohol Product
s" mean any alcoholic liquor beverage drink, other than wine, beer, or nonintoxicating beer, containing .05 percent or more of alcohol by volume, but not more than 15.5 percent alcohol by volume obtained by the process of distillation, mixed with potable 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 16 fluid ounces.
(18)
"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)
"Selling" includes solicitation or receipt of orders; possession for sale; and possession with intent to sell.
(20)
"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)
"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)
"Wine" means any alcoholic beverage obtained by the fermentation of the natural content of fruits, or other agricultural products, containing sugar.
(23)
"Winery" means an establishment where wine is manufactured or in any way prepared.

Article 8B. EXTENDING wholesale SALES OF READY TO DRINK Low-Proof DISTILLED Alcohol Products TO class a and class b retailers.

§60-8B-1. Declaration of legislative findings, policy and intent; construction.

Ready to drink low-proof distilled alcohol products are produced by distillation and therefore are currently only subject to distribution and sale pursuant to section §60-3A-1
et seq
. of this code.

The legislature further finds that ready to drink low proof distilled alcohol products due to their relatively lower alcohol content, container size and recent increase in popularity are amenable to final sale at more locations than the number of available retail liquor licensee locations.
In light of the findings made in subsections (a) and (b) of this section the legislature finds that ready to drink low proof distilled alcohol products may be sold at wholesale by retail liquor licensees to Class A and Class B retailers licensed under §11-16-16
et seq
. of this code for distribution and sale to consumers.

§60-8B-2. Applicability of other Laws; license to manufacture, sell, and distribute Ready to drink Low-Proof Distilled Alcohol Products.

(a) Sales of ready to drink low-proof distilled alcohol products by retail liquor licenses may be direct to consumer sales as authorized by Class A and Class B licensees for direct sale to consumers under §60-3A-1
et seq
. of this code and a retail liquor licensee may also act as a wholesaler of ready to drink low-proof distilled alcohol products to Class A and Class B licensees regulated by §11-16-1
et seq
. of this code. Notwithstanding any provision of this code to the contrary the maximum wholesale markup of sales of ready to drink low-proof distilled alcohol products by retail licensees to Class A and Class B licensees regulated by §11-16-1
et seq
. this code may not exceed 22 percent.

(c) Except as authorized by the provisions of this section distribution of ready to drink low-proof distilled alcohol products by retail liquor licensees shall be administered and carried out in the same manner as set forth in § 60-3A-1
et seq
. of this code, and any rules promulgated by the Commissioner thereunder
: Provided
, That a retail liquor licensee may opt to provide delivery services to Class A and Class B retailers regulated by §11-16-1
et seq
. this code for orders of ready to drink low-proof distilled alcohol products where an order is for 25 or more cases. Deliveries shall be conducted consistent with rules promulgated by the commissioner.
(d) An annual license fee of $250 shall be charged retail liquor licenses for the privilege of wholesale distribution of ready to drink low-proof distilled alcohol products to Class A and Class B retailers. The fee is non-refundable and cannot be prorated.
(e) Retail liquor licensees opting to provide delivery services to Class A and Class B retailers regulated by §11-16-1
et seq
. of this code pursuant to subsection (c) of this section shall be charged an annual license fee of $250. The fee is non-refundable and cannot be prorated.

§60-8B-3. Rule-making authorization.

The Commissioner may propose rules for legislative approval in accordance with the provisions of §29A-3-1
et seq.
of this code, to implement this article.

NOTE: The purpose of this bill is to allow retail liquor licensees to distribute at wholesale ready to drink low-proof distilled alcohol products to Class A and Class B retailers regulated by §11-16-1 et seq. of the code.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.

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