H. B. 2688


(By Delegates Thompson and Laird)
[Introduced February 8, 1999; referred to the
Committee on Finance then the Judiciary.]




A BILL to amend and reenact section twelve, article three-a, chapter sixty of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to providing for additional licensing fees for retail outlet sales of alcoholic liquors; and bidding procedure if license not extended under this section or if an initial license issuance.

Be it enacted by the Legislature of West Virginia:
That section twelve, 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:
ARTICLE 3A. SALES BY RETAIL LIQUOR LICENSEES.

§60-3A-12. Annual retail license fee; expiration and renewal of retail licenses.

(a) The annual retail license period shall be from the first day of July to the thirtieth day of June of the following year. The annual retail license fee for a Class A retail license shall be the sum obtained by multiplying the number of retail outlets operated by the retail licensee in the market zone to which such Class A retail license applies by one thousand five hundred one thousand dollars for each retail outlet operated by the retail licensee plus the additional license fee provided in subsection (b) of this section. The annual retail license fee for a Class B retail license shall be five hundred dollars. The annual retail license fee for the initial any partial license year of issuance shall be prorated based on the number of days remaining between the date of issuance and the following thirtieth day of June.
(b) Any person holding a retail license for a retail outlet on the thirtieth day of June, two thousand, shall have the option to extend the retail license for that retail outlet, provided the retail licensee continues to meet all licensee qualifications and pays the additional license fees below for that retail outlet;
(1) For the license year beginning the first day of July, two thousand, the additional fee shall be based on total liquor purchases from the commission during the preceding calendar year as follows:
(A) For zero sales or license not used, the additional fee shall be one thousand dollars;
(B) For purchases from one cent to twenty thousand dollars, the additional fee shall be two thousand dollars;
(C) For purchases from twenty thousand dollars one cent to fifty thousand dollars, the additional fee shall be four thousand dollars;
(D) For purchases from fifty thousand dollars one cent to one hundred thousand dollars, the additional fee shall be five thousand five hundred dollars;
(E) For purchases of one hundred thousand dollars one cent to one hundred fifty thousand dollars, the additional fee shall be seven thousand dollars;
(F) For purchases of one hundred fifty thousand dollars one cent to two hundred thousand dollars, the additional fee shall be eight thousand five hundred dollars;
(G) For purchases of two hundred thousand dollars one cent to two hundred seventy-five thousand dollars, the additional fee shall be ten thousand five hundred dollars;
(H) For purchases of two hundred seventy-five thousand dollars one cent to three hundred fifty thousand dollars, the additional fee shall be twelve thousand five hundred dollars;
(I) For purchases of three hundred fifty thousand dollars one cent to four hundred twenty-five thousand dollars, the additional fee shall be fourteen thousand five hundred dollars;
(J) For purchases of four hundred twenty-five thousand dollars one cent to five hundred thousand dollars, the additional fee shall be sixteen thousand five hundred dollars;
(K) For purchases of five hundred thousand dollars one cent to six hundred fifty thousand dollars, the additional fee shall be nineteen thousand dollars;
(L) For purchases of six hundred fifty thousand dollars one cent to eight hundred thousand dollars, the additional fee shall be twenty-one thousand five hundred dollars;
(M) For purchases of eight hundred thousand dollars one cent to nine hundred fifty thousand dollars, the additional fee shall be twenty-four thousand dollars;
(N) For purchases of nine hundred fifty thousand dollars one cent to one million one hundred thousand dollars, the additional fee shall be twenty-six thousand five hundred dollars;
(O) For purchases exceeding one million one hundred thousand dollars one cent, the additional fee shall be twenty-nine thousand dollars;
(2) For each license year thereafter, an additional fee which shall equal four percent of liquor purchases from the commission, payable at the time of purchase:
Provided, That if there were no purchases for an outlet during the preceding license year the license for that outlet shall expire and be subject to the bidding procedures otherwise provided in this article for the initial issuance of retail licenses.
(c) The alcohol beverage control commission may authorize an additional B license in a zone if present licensee does not hold a federal wholesale permit, or the population of the zone increases. A new licensee shall be subjected to the bidding process otherwise provided in this article relating to the issuance of retail liquor licenses.
(d) Any retail outlet license which is not extended pursuant to the provisions of subsection (b) of this section and any new outlets not licensed as of the effective date of this subsection shall be subject to the bidding procedures otherwise provided in this article for the initial issuance of retail licenses, with a minimum bid of five thousand dollars and a federal wholesale permit presented at the time of licensing:
Provided, That any successful bidder shall, in addition to, its bid amount be required to pay the annual license fee, including the additional fees, if any, provided by subsection (b) of this section. Any retail outlet not extending a license may not bid for the forfeited license for a twelve-month period.
(b) (e) All retail licenses shall expire on the thirtieth day of June of each year and may be renewed only upon the submission to the commissioner of the same information required for the issuance of the license and such additional information as may be requested by the commissioner on such forms and by such date as may be prescribed by the commissioner, together with the payment to the commissioner of the applicable annual retail license fee required under this section. All bid amounts for a new license after the first day of July, two thousand, are in addition to the license fees provided in subsections (a) and (b) of this section.
(c) (f) No person may sell liquor at any retail outlet if the retail license applicable to such outlet has been suspended or revoked, or has expired.
(d) All retail licenses issued or renewed under the provisions of this article shall expire and be of no further force or effect as of the first day of July, in the year two thousand, prior to which time new retail licenses shall be issued by following the bidding and other procedures set forth herein for the initial issuance of retail licenses.
(g) Municipalities may charge a retail license fee not to exceed two hundred fifty dollars annually.




NOTE: The purpose of this bill is to provide for additional licensing fees for retail outlet sales of alcoholic liquors.

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