Introduced Version
House Bill 2016 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2016
(By Delegate Perdue)
[Introduced February 13, 2013; referred to the
Committee on Health and Human Resources then Finance.]
A BILL to amend and reenact §11-16-13 of the Code of West Virginia,
1931, as amended; to amend said code by adding a new article,
designated §16-43-1, §16-43-2 and §16-43-3 of said code; to
amend and reenact §60-3A-17 of said code; and to amend and
reenact §60-8-4 of said code, all relating to funding for
substance abuse services through increased taxes on beer, wine
and liquor; increasing the barrel tax on nonintoxicating beer;
increasing the tax on purchases of liquor; increasing the
liter tax; creating a Prevention, Intervention, Treatment and
Recovery Fund to fund substance abuse programs; creating the
Alcohol and Drug Disbursement Board; granting the board the
authority to decided how money from the fund may be spent to
enhance services available to reduce drug and alcohol abuse;
setting forth the board's membership and term lengths; and
requiring annual reports be made to the Legislature.
Be it enacted by the Legislature of West Virginia:
That §11-16-13 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that said code be amended by adding
thereto a new article, designated §16-43-1, §16-43-2 and §16-43-3;
that §60-3A-17 of said code be amended and reenacted; and that
§60-8-4 of said code be amended and reenacted, all to read as
follow:
CHAPTER 11. TAXATION.
ARTICLE 16. NONINTOXICATING BEER.
§11-16-13. Barrel tax on nonintoxicating beer.
(a) There is hereby levied and imposed, in addition to the
license taxes provided for in this article, a tax of five dollars
and fifty cents $11 on each barrel of thirty-one gallons and in
like ratio on each part barrel of nonintoxicating beer manufactured
in this state for sale within this state, whether contained or sold
in barrels, bottles or other containers, and a like tax is hereby
levied and imposed upon all nonintoxicating beer manufactured
outside of this state and brought into this state for sale within
this state; but no nonintoxicating beer manufactured, sold or
distributed in this state is subject to more than one barrel tax:
Provided, That $5.50 of the barrel tax shall be paid into the
"Prevention, Intervention, Treatment and Recovery Fund", as
provided in article forty-three, chapter sixteen of this code. The brewer manufacturing or producing nonintoxicating beer within
this state for sale within this state shall pay the barrel tax on
such nonintoxicating beer, and, except as provided otherwise, the
distributor who is the original consignee of nonintoxicating beer
manufactured or produced outside of this state, or who brings such
nonintoxicating beer into this state, shall pay the barrel tax on,,
such nonintoxicating beer manufactured or produced outside of this
state: Provided, however, That the barrel tax imposed by this
section shall not apply to nonintoxicating beer manufactured by a
brewpub.
(b) On or before the tenth day of each month during the
license period, every brewer or operator of a brewpub who
manufactures or produces nonintoxicating beer within this state
shall file a report in writing, under oath, to the Tax
Commissioner, in the form prescribed by the Tax Commissioner,
stating its total sales, or in the case of a brewpub, its total
estimated production of nonintoxicating beer within this state
during that month, and at the same time shall pay the tax levied by
this article on such production. On or before the tenth day of
each month during the license period, every distributor who is the
original consignee of nonintoxicating beer manufactured or produced
outside this state or who brings such beer into this state for sale
shall file a report in writing, under oath, to the Tax
Commissioner, in the form prescribed by the Tax Commissioner, stating its total estimated purchases of such nonintoxicating beer
during that month, and at the same time shall pay the tax thereon
levied by this article for such estimated monthly purchase:
Provided, That the Tax Commissioner may allow, or require, a brewer
who manufactures or produces nonintoxicating beer outside this
state to file the required report and pay the required tax on
behalf of its distributor or distributors. Any brewer or
distributor or operator of a brewpub who files a report under this
subsection may adjust its monthly estimated sales or purchases or
production report or reports by filing amended reports by the
twenty-fifth day of the reporting month.
(c) Every brewer or distributor or operator of a brewpub who
files a report under subsection (b) of this section shall file a
final monthly report of said sales or purchases or production, in
a form and at a time prescribed by the Tax Commissioner, stating
actual nonintoxicating beer sales, purchases, or production and
other information which the Tax Commissioner may require, and shall
include a remittance for any barrel tax owed for actual sales or
purchases or production made in excess of the amount estimated for
that month.
(d) Any brewer or distributor or operator of a brewpub who
files a report pursuant to subsection (b) of this section
reflecting an underestimation of twenty-five percent or more of
actual sales or purchases or production of nonintoxicating beer as shown by the report filed pursuant to subsection (c) of this
section shall be assessed a penalty of one percent of the total
taxes due in such prior month.
(e) Brewers and distributors and operators of brewpubs shall
keep all records which relate to the sale or purchase in this state
of nonintoxicating beer for a period of three years unless written
approval for earlier disposal is granted by the Tax Commissioner.
(f) Brewpubs shall keep such records as required by the
federal government and may, in lieu of the recordkeeping and
reporting requirements contained in subsections (a) through (e) of
this section, file copies of the federal reports contemporaneously
with the Tax Commissioner at the time of such filings with the
federal government. The filing of duplicate copies of the federal
reports with the State Tax Commissioner shall be deemed as
compliance with subsections (a) through (e) of this section.
CHAPTER 16. PUBLIC HEALTH.
ARTICLE 43. SUBSTANCE ABUSE PREVENTION, INTERVENTION, TREATMENT
AND RECOVERY.
§16-43-1. Purpose.
__________The purpose of this article is to take bold, aggressive action
against the substance abuse problems that are pervasive in this
state. Changing the environment in our state that currently permits
the problem to thrive requires the implementation of a well developed state plan.
§16-43-2. Prevention, Intervention, Treatment and Recovery Fund.
__________The "Prevention, Intervention, Treatment and Recovery Fund" is
created by this section within the state treasury. Revenues
generated by an increased barrel tax on nonintoxicating beer
pursuant to section thirteen, article sixteen, chapter eleven of
this code, an increased tax on the sale of liquor pursuant to
section seventeen, article three-a, chapter sixty of this code and
an increased liter tax pursuant to section four, article eight,
chapter sixty of this code on the sale of wine shall be transferred
into that special account. Expenditures from the fund shall be for
the purposes set forth in this article and are not authorized from
general collections but are to be made only in accordance with
appropriation by the Legislature and in accordance with article
three, chapter twelve of this code and upon fulfillment of article
two, chapter eleven-b of this code. Funds shall be expended in a
manner consistent with the "Governor's Comprehensive Strategic Plan
to Address Substance Abuse in West Virginia." Priority
consideration will be given to unserved areas of the state. The
Alcohol and Drug Disbursement Board shall develop a grant program
to be staffed by the Bureau for Behavioral Health and Health
Facilities.
§16-43-3. The Alcohol and Drug Disbursement Board.
__________(a) The Alcohol and Drug Disbursement Board is created by this section and will make decisions on how the money in the Prevention,
Intervention, Treatment and Recovery Fund is to be spent to enhance
the services available in the state to reduce drug and alcohol
abuse. The board shall consist of thirteen members with the
Secretary of the Department of Health and Human Resources serving
ex officio as the chair. The board shall be appointed as follows:
__________(1) One circuit court judge appointed by the Judicial
Association;
__________(2) One addiction specialist appointed by the Behavioral
Health Provider's Association;
__________(3) One representative of the Partnership to Promote Community
Well-Being appointed by that organization;
__________(4) One representative of the West Virginia Association of
Alcohol and Drug Abuse Counselors appointed by that organization;
__________(5) One representative of the West Virginia Association of
Fellowship Homes appointed by that organization;
__________(6) One representative of the Bureau of Behavioral Health and
Health Facilities appointed by that organization;
__________(7) One representative of the Mental Health Consumer's
Association appointed by that organization;
__________(8) One representative of the West Virginia Controlled
Substance Advisory Board appointed by that organization;
__________(9) One representative of sheriffs appointed by the West
Virginia Sheriffs Association;
__________(10) One representative of the State Police appointed by the
secretary of the Department of Military Affairs and Public Safety;
__________(11) One member of the Senate appointed by the President of
the Senate, who shall serve as a nonvoting member;
__________(12) One member of the House of Delegates appointed by the
Speaker of the House of Delegates, who shall serve as a nonvoting
member; and
__________(13) Secretary of the Department of Health and Human Resources
who shall as serve ex officio as the chair.
__________All decisions of the board shall be evidence-based and data
driven.
__________(b) The members of the board shall each serve terms that begin
on July 1, 2013. Of the initial appointments to the board, the four
members as identified in subdivisions (1) through (4), subsection
(a) of this section shall serve for two-year terms, the four
members as identified in subdivisions (5) through (8), subsection
(a) of this section shall serve for three-year terms, and the four
members as identified in subdivisions (9) through (12), subsection
(a) of this section shall serve for four-year terms. Thereafter,
each appointment shall be for a four-year term commencing upon the
expiration of his or her previous term or of his or her
predecessor's term. No member may be appointed for more than three
consecutive terms. Vacancies shall be appointed in a like manner
for the balance of an unexpired term. The Secretary of the Department of Health and Human Resources, serving ex officio as the
chair, is a permanent member.
__________(c) An annual report shall be prepared for the Legislative
Oversight Commission on Health and Human Resource Accountability to
inform the commission of the methodology used to make funding
decisions and the funding decisions made.
CHAPTER 60. STATE CONTROL OF ALCOHOLIC LIQUORS.
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 $6.5 million
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: Provided, That wholesale prices shall be set in a manner to yield a net profit, for the Prevention, Intervention, Treatment
and Recovery Fund created by section two, article forty-three,
chapter sixteen of this code, of not less than $6,500,000 annually
on an annual volume of business equal to the average for the past
three years.
(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:
Provided, 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 ten 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 ten percent of the retail
licensee's cost as defined in section six, article eleven-a,
chapter forty-seven of this code.
ARTICLE 8. SALE OF WINES.
§60-8-4. Liter tax.
There is hereby levied and imposed on all wine sold after July
1, 2007, by suppliers to distributors, and including all wine sold
and sent to West Virginia adult residents from direct shippers,
except wine sold to the commissioner, a tax of twenty-six and four hundred six-thousandths 52.812 cents per liter: Provided, That
26.406 cents of this tax be paid into the Prevention, Intervention,
Treatment and Recovery Fund created by section two, article
forty-three, chapter sixteen of this code.
Before the sixteenth day of each month thereafter, every
supplier, distributor and direct shipper shall make a written
report under oath to the Tax Commissioner and the commissioner
showing the identity of the purchaser, the quantity, label and
alcoholic content of wine sold by the supplier to West Virginia
distributors or the direct shipper to West Virginia adult residents
during the preceding month and at the same time shall pay the tax
imposed by this article on the wine sold to the distributor or the
West Virginia adult residents during the preceding month to the Tax
Commissioner.
The reports shall contain other information and be in the form
the Tax Commissioner may require. For purposes of this article,
the reports required by this section shall be considered tax
returns covered by the provisions of article ten, chapter eleven of
this code. Failure to timely file the tax returns within five
calendar days of the sixteenth day of each month will also subject
a supplier, distributor and direct shipper to penalties under
section eighteen of this article.
No wine imported, sold or distributed in this state or sold
and shipped to this state by a direct shipper shall be subject to more than one liter tax.
NOTE: The purpose of this bill is to provide funding for
substance abuse services through increased taxes on beer, wine and
liquor. The bill increases the barrel tax on nonintoxicating beer,
increases the tax on purchases of liquor and wine, and increases
the liter tax. The bill creates a Prevention, Intervention,
Treatment and Recovery Fund to fund substance abuse programs. The
bill creates the Alcohol and Drug Disbursement Board. The bill
grants the board authority to decided how money from the fund may
be spent to enhance services available to reduce drug and alcohol
abuse. The bill sets forth the board's membership and term lengths.
The bill also requires annual reports be made to the Legislature.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§16-43-1, §16-43-2 and §16-43-3 are new; therefore, they have
been completely underscored.