Virginia Self-Distribution Bill Lands on Governor’s Desk
Virginia brewers are one signature away from being able to self-distribute their beer in state.
The Beer Industry Limited Distribution Act (House Bill 2258) passed the state Senate last week and has been sent to Gov. Glenn Youngkin’s desk. It would allow breweries to self-distribute up to 500 barrels annually. A Virginia House of Delegates subcommittee unanimously approved the bill in January.
The bill would establish the Virginia Beer Distribution Co. (VDBC) – a new division in the state’s Department of Agriculture and Consumer Services – which would function as a nonprofit corporation to “promote, develop and sustain markets for brewery and limited brewery licensees,” according to the bill. The VDBC would mimic the Virginia Wine Distribution Co. (VWDC), which was founded in 2007 and serves Virginia wineries in a similar way.
The VDBC would require $750,000 in government funding to get started, but the state budget is still being worked on by Youngkin’s administration and the General Assembly, according to Richmond BizSense. Funding could come through as early as this summer, but the bill includes a “delayed enactment clause” to put it into effect in 2024 if it misses 2023 funding.
Virginia’s 314 craft breweries produced 422,645 barrels of beer in 2021, according to the Brewers Association (BA).
Washington RTD Definition Bill Stalls
Washington’s state Legislature has failed to advance a bill that would define “low-proof beverages.”
The Senate Ways and Means Committee opted not to move S.B. 5375 for broader discussion. The bill would have defined low-proof beverages as “any beverage that is 16 oz. or less and that contains more than 0.5% alcohol by volume and less than 7% alcohol by volume but does not include wine, malt beverages or malt liquor.”
S.B. 5375 would have set the tax rate for low-proof beverages at $2.50 per gallon.
South Carolina Advances Pair of Alcohol Home Delivery Bills
Two bills governing home delivery of alcohol – one to legalize home delivery and curbside pickup and one to establish a certification program for bartenders and drivers – were passed by the South Carolina Senate Judiciary panel this week, according to The State.
Senate Bill 425 would bring back curbside delivery of beer and wine, which was permitted during the pandemic but lapsed in June 2021, as well as legalize home delivery of beer, wine and spirits. South Carolina lawmakers considered a similar proposal two years ago, which passed the state House of Representatives, according to The State.
Under S.B. 425, third-party delivery platforms – such as Drizly, Instacart, Minibar and DoorDash – would be able to deliver beverage-alcohol products to consumers’ homes. Drivers would have to be at least 21 and pass a background check, as well as training and certification as prescribed by Senate Bill 260, the Responsible Alcohol Server Training Act.
Training programs to gain certification would be capped at $35 and needed to be repeated every three years. In addition to delivery drivers, managers of bartenders would also have to become certified.
Oregon Considers Raising DTC Shipping Cap for Brewers and Cideries
The Oregon state Senate has approved a bill that would more than double the amount of beer or cider producers can ship directly to consumers (DTC) each month.
Senate Bill 616 “would increase the number of cases our members can ship/deliver directly to consumers from two to five cases per residence per month,” the Oregon Brewers Guild (OBG) wrote in an update on its website. Cases may not exceed 9 liters in volume.
The Oregon Liquor and Cannabis Commission (OLCC) grants direct shipper permits to out-of-state producers “only if that other state makes direct shipper permits, or the equivalent, available for the delivery of malt beverages” by licensed Oregon brewers.
The bill passed the Senate late last month, and was referred to the House of Representatives Economic Development and Small Business committees.