WEST VIRGINIA LEGISLATURE
2025 REGULAR SESSION
Introduced
House Bill 2775
By Delegate Chiarelli
[Introduced February 21, 2025; referred to the Committee on Government Organization]
A BILL to amend and reenact §11-16-20 of the Code of West Virginia, 1931, as amended, relating to permitting the sale of nonintoxicating beer, ale or other malt beverage or cooler to a distributor or wholesaler at volume discount prices; and to reducing the time from 90 days to 30 days for prices to go into effect.
Be it enacted by the Legislature of West Virginia:
## ARTICLE 16. NONINTOXICATING BEER.
(a) It is unlawful:
(1) For any brewer or manufacturer, or any other person, firm or corporation engaging in the business of selling nonintoxicating beer, ale or other malt beverage or cooler to a distributor or wholesaler, to discriminate in price, allowance, rebate, refund, commission, discount or service between distributors or wholesalers licensed in West Virginia. "Discriminate," as used in this section, shall mean granting of more favorable prices, allowances, rebates, refunds, commissions, discounts or services to one West Virginia distributor or wholesaler than to another: Provided, That sales may be made with volume discounts of the amount of nonintoxicating beer, ale or other malt beverage or cooler sold to a distributor or wholesaler. A price schedule for discount prices for sales by volume shall be submitted to the commissioner as provided for in subdivision (2) of this subsection.
(2) For any brewer or manufacturer, or any other person, firm or corporation engaged in the business of selling nonintoxicating beer, ale or other malt beverage or malt cooler to a distributor or wholesaler, to sell or deliver nonintoxicating beer, ale or other malt beverage or malt cooler to any licensed distributor or wholesaler unless and until such brewer, manufacturer, person, firm or corporation, as the case may be, shall have filed the brewery or dock price of such the beer, ale or other malt beverage or malt cooler, by brands and container sizes, with the commissioner. The pricing submitted to the commissioner shall also be submitted contemporaneously to the licensed distributor or wholesaler. No price schedule shall may be put into effect until ninety 30 days after receipt of same the schedule by the commissioner and shall be submitted on or before the following quarterly dates of January 1, April 1, July 1 and October 1 of the calendar year to be effective: Provided, That any price shall remain in effect not less than ninety 30 days.
(3) For any brewer or manufacturer, resident brewer or any other person, firm or corporation engaged in the business of selling nonintoxicating beer, ale or other malt beverage or malt cooler to a distributor or wholesaler to sell, offer for sale or transport to West Virginia any nonintoxicating beer, ale or other malt beverage or malt cooler unless it has first registered its labels and assigned to the appropriate distributor per an equitable franchise agreement, all as approved by the commissioner.
(4) For any brewer or manufacturer, or any other person, firm or corporation engaged in the business of selling nonintoxicating beer, ale or other malt beverage or malt cooler to provide, furnish, transport or sell its nonintoxicating beer products, brands and line extensions to any person or distributor other than the appointed distributor per the franchise agreement and established in the franchise distributor network in the territory assigned to that appointed distributor.
(5) For any brewer or manufacturer, or any other person, firm or corporation engaged in the business of selling nonintoxicating beer, ale or other malt beverage or malt cooler to provide, furnish, transport or sell its nonintoxicating beer products, brands and line extensions that have been denied by the commissioner.
(6) For any resident brewer that chooses to utilize a franchise agreement and a franchise distributor network, either in addition to or in conjunction with its limited quantity of nonintoxicating beer for self-distribution, to violate this section and the resident brewer is subject to the sanctions in subsections (b) and (c) of this section.
(b) The violation of any provision of this section by any brewer or manufacturer shall constitute grounds for the forfeiture of the bond furnished by such brewer or manufacturer in accordance with the provisions of §11-16-12 of this code.
(c) The violation of this section by any brewer or manufacturer is grounds for sanctions as determined by the commissioner in accordance with §11-16-23 and §11-16-24 of this code and the rules promulgated by the commissioner.
(d) Any resident brewer that chooses to utilize a franchise agreement and a franchise distributor network, either in addition to or in conjunction with its limited quantity of nonintoxicating beer for self-distribution, shall be treated as a brewer under this article and the applicable promulgated rules.
NOTE: The purpose of this bill is to permit the sale of nonintoxicating beer, ale or other malt beverage or cooler to a distributor or wholesaler at volume discount prices and to reduce the time from 90 days to 30 days for prices to go into effect.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.