Senate Bill No. 627
(By Senators Bailey and Unger)
[Introduced March 21, 2005; referred to the Committee
on the Judiciary; and then to the Committee on Finance.]
A BILL to amend and reenact §60-3A-17 of the Code of West Virginia,
1931, as amended, relating to the sale of liquor generally;
and increasing the percentage a liquor retail licensee may
charge the general public and licensed clubs to one hundred
twenty percent of cost.
Be it enacted by the Legislature of West Virginia:
That §60-3A-17 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
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.
(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.
(b) Wholesale prices shall be established in order to yield a
net profit for the General Fund of not less than six million five
hundred thousand dollars 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 section
seventeen, article three of this chapter.
(c) 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 sections twelve and thirteen,
article six of this chapter shall not apply to the transportation
of the liquor: Provided,
That a retail licensee shall purchase
wine from a wine distributor who is duly licensed under article
eight of this chapter. 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
twenty-four hours prior to the shipping of the alcoholic liquors:
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 article seven of this chapter at
less than one hundred
percent of the retail licensee's
cost as defined in section six, article eleven-a, chapter
forty-seven of this code.
(2) A retail licensee may not sell liquor to the general
public at less than one hundred
percent of the retail
licensee's cost as defined in section six, article eleven-a,
chapter forty-seven of this code.
NOTE: The purpose of this bill is to increase the percentage
a liquor retail licensee may charge the general public and licensed
clubs to one hundred twenty percent of the cost of the liquor.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would