HB 5243
Allowing a bar to purchase liquor from a distillery or a mini-distillery
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill allows licensed bars and establishments to purchase liquor directly from distilleries and mini-distilleries located within 10 miles. It outlines specific rules regarding sales, taxes, and fees associated with these purchases, including a five percent wholesale markup and a bailment fee. The bill also permits distilleries to sell complimentary samples at private fairs and festivals, subject to certain conditions and reporting requirements. Finally, it establishes limitations on distillery production volume and clarifies that local governments cannot regulate distillery operations.
Key provisions
- Bars can purchase liquor from distilleries and mini-distilleries within 10 miles.
- A five percent wholesale markup fee and an 80-cent bailment fee apply to off-premises liquor sales from distilleries.
- Distilleries can sell complimentary samples at private fairs and festivals with prior notification.
- Distilleries are limited to producing a maximum of 50,000 gallons of liquor per year.
- Local governments cannot regulate distillery operations.
- Liquor sales to licensees from distilleries are subject to market zone payments.
- Distilleries can operate as wineries, breweries, or farm wineries.
- Exceptions are provided for purchasing wines from licensed distributors and for transporting liquor under specific contract arrangements.
Who is affected
- Bars and restaurants
- Distilleries and mini-distilleries
- Alcohol Beverage Control Commission
- Market zone retailers
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