History

The West Virginia Legislature created the West Virginia Alcohol Beverage Control Commission ("WVABCC") in 1935 (See W.Va. Const. Art. IV §46 and W.Va. Code §60-1-1 et seq.) The WVABCC was organized to give effect to the mandate of the people expressed in the repeal of the state prohibition amendment, and to assure the greatest degree of personal freedom that is consistent with the health, safety, and good morals of the people of West Virginia. During the WVABCC's first 56 years of existence, the WVABCC functioned as the exclusive wholesaler and retailer of liquor in West Virginia; non-fortified wines were "privatized" in 1981.

With the repeal of Prohibition, the three-tier system of distribution was established in West Virginia. This distribution format regulates the three tiers: manufacturer, wholesaler and licensed retailer. Laws, rules and regulations provide protection for each tier. Fairness and equality are the overriding principles by eliminating connection between the tiers. In 1937, the term nonintoxicating beer was enacted which would allow for the product to be consumed in public. At conception, the authority to regulate beer was the responsibility of the State Tax Commissioner. In 1945, the West Virginia Nonintoxicating Beer Commission was established to regulate and enforce beer laws. The Nonintoxicating Beer Commission was a stand-alone independent agency until it merged with the West Virginia Alcohol Beverage Control Commission in 1990 to form a united West Virginia Alcohol Beverage Control Administration (“WVABCA”) with a single Commissioner over all aspects of the alcohol industry in West Virginia.

On February 27, 1990, SB 337 discontinued the retail sale of alcoholic liquor by the State through state stores. This legislation created the Retail Liquor Licensing Board ("RLLB” or “Board”) to establish market zones and bid retail liquor outlets throughout West Virginia. Currently, the RLLB is comprised of the Chairman of the Board who is the Secretary of Revenue, the Secretary of the Board who is the WVABCA Commissioner and three gubernatorial board appointees. During Fiscal Year 1991, public bids were held in August 1990, January 1991, and May 1991. This resulted in the sale of retail liquor outlet licenses in all 98 market zones offered and the possibility of 214 privately owned liquor stores being opened in West Virginia. The revenue generated for the 1990 to 2000 license period was $15,300,000.

In 2000, the RLLB's license bid process utilized minimum bids which were calculated based on demographics, population and other factors. The bidding generated revenue from all issued licenses which was deposited into the State’s General Revenue Fund based on the minimum bids and the Governor's official revenue estimate. The licenses were issued for a 10-year period and expired June 30, 2010. During the 2000 bid process, a few licenses were never issued, and some licenses were abandoned. In 2006, the RLLB approved an Interim Bid and the splitting of certain licenses. The licenses were rebid on a prorated minimum bid basis and two licenses were awarded in 2007 for the remainder of the ten-year period ending June 30, 2010. The total revenue generated from the bid process for 168 retail outlets for the 2000 to 2010 license period was $22,395,695.

In 2009, HB 105 changed the Retail Liquor License Bid process by creating Class A freestanding liquor retail outlets and Class B mixed retail liquor outlets (See W.Va. Code of State Rules at 175 CSR 1 and 175 CSR 5). The RLLB and WVABCA were authorized to initiate Purchase Option and License Bid Process (See West Virginia §60-3A-1, et seq., as amended). In addition, retail liquor outlets closing hours for Monday through Saturday were extended from 10:00 p.m. to midnight (12:00 a.m.). No sales continued for Sundays, Christmas and on a statewide Election Day. HB 2719 increased the alcohol by volume (ABV) for nonintoxicating beer from 6% to 12% and created a new beer category of nonintoxicating craft beer.

The 2010 to 2020 license period for retail liquor outlets resulted in awarding 178 licenses across 98 market zones. The revenue generated from the purchase option, initial bid, subsequent bids, financed amounts, interest and license fee revenue totaled $38,031,478.

Effective June 10, 2011, HB 3100 allowed for Election Day sales of liquor at retail liquor outlets. SB 2020 went into effect on September 27, 2021 and changed the opening time to 6:00 a.m. with no change to the midnight closing time.

In 2012, HB 3174 permitted Class A liquor retail outlets to conduct responsible nonintoxicating beer and liquor sampling events with certain requirements on any day but Sunday. HB 4376 allowed licensed wine sales at certain professional baseball stadiums.

In 2013, HB 2956 amended the sections of the Code relating to resident brewers and brewpubs.

In 2014, HB 3145 removed the limit of nonintoxicating beer that may be sold to an individual for off-premises consumption by a Class B retailer. SB 172 allowed trusts and limited liability companies to be listed as the owner of a beer distributor. SB 470 permitted only licensed farm wineries and wineries to sell wine and wine samples during fairs or festivals and on Sunday mornings, subject to requirements. Finally, SB 450 allowed the sale of alcoholic liquors in specific outdoor dining areas that are adjoining an establishment with a liquor license. This bill also creates a special license to allow the sale of wine at NCAA Division I college and university sports stadiums.

In 2015, SB 273 permitted licensed brewers and resident brewers to conduct nonintoxicating beer sampling on their brewery premises and allowed resident brewers to sell growlers for off-premises consumption. The bill also removed the brewpub bond requirement. SB 574 promoted the distilling industry in West Virginia by reducing the markup imposed on mini-distillers from 28% to 5% (the mini-distillery could retain the 23% difference) and eliminated the transportation fee of $2.30 per case on certain distillery sales. The Market Zone Fee was also reduced from 10% of gross sales at the distillery to 2% of gross sales and capped at a total of $15,000.

In 2016, SB 298 allowed county commissions to conduct a county option election on the question of whether to allow restaurants, private clubs, Class A retailers, wineries and wine serving entities to sell alcoholic liquors, wine and non-intoxicating beer on Sundays. The bill also permitted distilleries and mini-distilleries to offer alcohol beginning at 10:00 a.m. on Sundays for on-premises consumption only. An expansion of licenses allowed to operate extended hours on Sunday occurred when “Home Rule” municipalities petitioned the Home Rule Board for the “Brunch Bill” hours.

Effective May 1, 2017, the mark-up for spirits from 28% to 32%. The mark-up had not changed since 2003. In 1990, at the beginning of bailment, the markup was 25%. The WVABCA receives no excise tax on the production of spirits.

In 2017, SB 637 modified the Class A private club licenses which was the first major change to the Private Club Act in nearly 50 years. The new license categories were aimed at Licensees operating tourist destinations and resort facilities by permitting the Licensee to obtain one private resort hotel license for the lawful sale and consumption of alcoholic liquors and nonintoxicating beer in designated and approved areas throughout the licensed premises but within the confines of the property. The bill also created a private golf club license.

In 2019, SB 561 created licenses for a private fair & festival and a private nine-hole golf course. This bill addressed frozen drink machines and allowed bottle sales at certain Class A on-premises licenses. SB 561 addressed law enforcement assistance during certain WVABCA enforcement activities and clarified that the operation of BYOB’s are illegal as is the consumption of alcoholic liquors in public. SB 529 created a one-day charitable beer license and wine license for certain nonprofits and permitted wine auctions. This bill created a license for beer representatives and a nonintoxicating beer transportation permit and increased the alcohol content to 15% ABV. SB 511 dealt with the wine industry and created new opportunities for wineries, farm wineries and licensure. The bill clarified tasting, sampling and sales procedures for wineries and farm wineries.

On March 3, 2019, HB 2481 went into effect to allow Sunday retail sales of spirits to start at 1:00 p.m. and end at midnight (12:00 a.m.). The Christmas Day restriction remained in effect, and Easter Sunday was added as a restricted day.

In 2019, the “RLLB” voted to proceed with the 2020 Purchase Option and License Bid Process as authorized in the West Virginia State Code and Legislative Rules. The process began on December 5, 2019, with the 2020 Purchase Option – Phase I with 49 retail liquor outlets exercising the Purchase Option, and 28 utilizing the Deferred Payment Financing Option. Phase II – 2020 License Bidding Process completed on January 9, 2020, with 128 successful bidders. Phase III – 2020 License Bidding Process completed on April 1, 2020, with two successful bidders. The Purchase Option (Phase I), Bid Process Phase II and Bid Process Phase III awarded a total of 179 retail liquor outlet licenses and generated $52,223,715. This amount includes finance amounts, interest, future license fee revenue for the 2020-2030 license period.

In 2020, HB 4524 made the entire state “wet” for the retail sale of spirits, while still allowing counties or municipalities the option to remain dry. SB 610 removed the out-of-state licensure limitation and set forth manager requirements. New licensees and changes to existing licenses resulted from the passage of HB 4388, HB 4560, HB 3098, HB 4882, and HB 4697. During the COVID-19 pandemic a special temporary outdoor authorization was created and the process to apply was streamlined. Additionally, State of Emergency Declaration and Governor’s Emergency Executive Orders were established which impacted most WVABCA licenses.

In 2021, the passage of HB 2025 resulted in significant changes to the Private Club license. Two new license categories were created based on the service the business provides. A Private Club license for businesses primarily engaged in food service and a Private Club license for businesses primarily designated as an entertainment/nightclub venue with limited food services. In addition, new licenses for private caterer, private wedding venues or barn, and others were created. Legislation also addressed curbside in-person or in-vehicle pickup, third party delivery, outside dining, and outside street dining. SB 2020 allowed retail liquor outlets to open at 6:00 a.m. and was effective September 22, 2021 (next fiscal year).

On March 23, 2021, the “RLLB” completed Phase IV of the License Bid Process for retail liquor outlets. This resulted in awarding two additional licenses and generated an additional $1,165,000. The total revenue guaranteed from the Purchase Option and Phases I - IV for 181 retail liquor outlets was $53,388,715. The “RLLB” approved Phase V to take place in FY 2023.

In 2022, the “RLLB” completed Phase V of the License Bid Process for retail liquor outlets. A license was awarded in Calhoun County which had never had a retail liquor outlet store since privatization in 1990. This new license brings the total number of retail liquor outlets in the state to 182. The total revenue generated from Phases 1 through V was approximately 54.5M. This amount includes finance amounts, interest, and licensed future license fee revenue for the 2020-2030 license period.

In 2022, HB 4848 created new license types (see FY22 Annual Report) and addressed new delivery rules.

In 2023, SB 534 and HB 3311 created the Private Outdoor Designated Area (PODA) permit for municipalities. New legislation also created the private food court license and the private coliseum or center license. Table wine ABV was increased to 15.5%.