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2023 Session

Budget Amendments - SB800 (Member Request)

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Chief Patron: Ruff
Establishes the Virginia Beer Distribution Company

Item 98 #4s

Item 98 #4s

First Year - FY2023 Second Year - FY2024
Agriculture and Forestry
Department of Agriculture and Consumer Services FY2023 $0 FY2024 $784,200 GF
FY2023 0.00 FY2024 2.00 FTE

Language
Page 90, line 34, strike "$25,275,307" and insert "$26,059,507".

Page 92, after line 25, insert:

"M.1. The Commissioner, Department of Agriculture and Consumer Services, is authorized to collect transaction fees, as a percentage of each transaction and/or a flat fee per transaction, to pay for the marketing, banking, insurance, infrastructure, staffing, and overhead directly associated with the operation of the Virginia Beer Distribution Company.

2. The Commissioner, Department of Agriculture and Consumer Services, is authorized to collect annual licensing fees and an initial application fee from licensed breweries and limited breweries utilizing the services of the Virginia Beer Distribution Company.

3. Out of the amounts in this Item, $205,800 in the second year from the general fund is provided for two positions and $400,000 in the second year from the general fund is provided for initial information systems.

4. Out of the amounts in this Item, $56,400 in the second year from brewery and limited brewery license fees paid to the Alcoholic Beverage Control Authority, is provided for offsetting all other service expenses.

5. The Virginia Beer Distribution Company Board (the Board) shall establish a transaction fee schedule for transactions which may include flat fees or fees based on a percentage of the sale. The Board may provide a transaction fee incentive for any brewery or limited brewery that utilizes materials or ingredients grown or processed in the Commonwealth, including malt, hops, grain, fruit, juice, vegetables, spices, yeast, enzymes, packaging, containers, labeling, and closures. The Board may limit the volume of beer sold per transaction."



Explanation

(This amendment provides $784,200 GF in FY 2024 and two positions to support the start-up costs for the Virginia Beer Distribution Company.)