Senate Bill No. 472

(By Senators Dugan and Buckalew)


[Introduced February 19, 1996; referred to the Committee on Government Organization.]

A BILL to amend and reenact sections five and six, article
three-a, chapter sixty of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to state control of alcoholic liquors; sales by retail liquor licensees; retail liquor licensing board; membership; and general powers and duties of the board and commissioner.

Be it enacted by the Legislature of West Virginia:
That sections five and six, article three-a, chapter sixty of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:

§60-3A-5. Creation of retail liquor licensing board; members,
terms, meetings and officers; general provisions.

(a) There is hereby created the state retail liquor licensing board which shall be is composed of five eight members, three of whom shall be appointed by the governor by and with the advice and consent of the senate, one of whom shall be the secretary of tax and revenue, and one of whom shall be the commissioner and six of whom shall be appointed by the governor with the consent of the Senate. Three of the appointed members shall be liquor retailers representing a diversity of the market place: Provided, That the representatives of retail licensees shall be known and designated as "associate members" of the board, whose duties are to investigate, advise and recommend to the board bidding process revisions, but are hereby prohibited from participating in the issuance of retail licenses or other matters of obvious conflict or self-interest. The secretary of tax and revenue and the commissioner shall serve as the chairman and secretary, respectively, of the board. No more than two three of the three six members appointed by the governor shall be of the same political party. No member of the board may hold a retail license or have any financial interest, directly or indirectly, in any retail licensee.
(b) The provisions of this subsection apply to the three six members appointed by the governor. They shall be appointed for overlapping terms of three years each and until their respective successors have been appointed and have qualified, except for the original appointments. For the purpose of original appointments, one member shall be appointed for a term of three years and until his or her successor has been appointed and has qualified, one member two members including one associate member shall be appointed for a term of two years and until his or her successor has been appointed and has qualified, and one member three members including two associate members shall be appointed for a term of one year and until his or her successor has been appointed and has qualified. Members may be reappointed for any number of terms. Before entering upon the performance of his or her duties, each member shall take and subscribe to the oath required by Section 5, Article IV of the Constitution of this state. Vacancies shall be filled by appointment by the governor for the unexpired term of the member whose office shall be vacant and such appointment shall be made within sixty days of the occurrence of such vacancy. Any member may be removed by the governor in case of incompetency, neglect of duty, gross immorality or malfeasance in office. Members shall receive compensation of one hundred dollars per day for each day actually engaged in the performance of their duties as board members, and in addition shall be reimbursed for all reasonable and necessary expenses actually incurred in the performance of their duties.
(c) A majority of the members of the board constitutes a quorum and meetings shall be held at the call of the chairman.
(d) Staff, office facilities and costs of operation of the board shall be provided by the commissioner.
§60-3A-6. General powers and duties of board and commissioner.
(a) The board shall create, based on economic and demographic factors, market zones within the state for the issuance of Class A and Class B retail licenses, and, if deemed necessary or desirable by the board, to create one or more designated areas within such market zones for the issuance of Class B retail licenses: Provided, That retail licensees are limited to twenty retail outlets in this state.
(b) The board shall review market zones and hours of operation of licensees, the concept of first refusal for present or current license holders and the desirability and practicality of issuing permanent licenses.
(c) The board shall establish procedures for conducting hearings and receiving public comments on the retail licensing process provided in this article.
(d) The board shall review the bidding process provided in this article, and annually make recommendations to the Legislature and governor relating to any changes in procedure or this article that it believes should be made and submit proposed legislation or rule changes to effect these changes.
(b) (e) The commissioner shall:
(1) Prescribe application forms for persons desiring to acquire retail licenses and adopt an orderly procedure and timetable for investigating, processing and approving applications;
(2) Develop a form of retail license to be issued to each retail licensee under the provisions of this article;
(3) Disseminate to the public information relating to the issuance of retail licenses;
(4) Promulgate standards for advertising the sale, availability, price and selection of liquor;
(5) Enforce the provisions of this article;
(6) Impose civil penalties upon retail licensees;
(7) Enter the retail outlet of any retail licensee at reasonable times for the purpose of inspecting the same, and determining the compliance of such retail licensee with the provisions of this article and any rules promulgated by the board or the commissioner pursuant to the provisions of this article; and
(8) Issue subpoenas and subpoenas duces tecum for the purpose of conducting hearings under the provisions of section twenty-six or section twenty-eight of this article, which subpoenas and subpoenas duces tecum shall be issued in the time, for the fees, and shall be enforced in the manner specified in section one, article five, chapter twenty-nine-a of this code with like effect as if such section was set forth in extenso herein.
(c) (f) The board and the commissioner shall each:
(1) Engage accounting, legal and other necessary professional consultants to assist them in carrying out their respective duties under this article; and
(2) Adopt, amend, or repeal such procedural, interpretive and legislative rules, consistent with the policy and objectives of this article, as they may deem necessary or desirable for the public interest in carrying out the provisions of this article. Such rules shall be adopted, amended and repealed in accordance with the provisions of chapter twenty-nine-a of this code.

NOTE: The purpose of this bill is to change the composition of the State Retail Liquor Licensing Board by appointing three additional members who are to serve as associate members; and to add to the responsibilities of the Board relating to its procedural authority and its review of existing procedures.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.