WeVote
Log In

Bill

Bill

HB 5504

Relating to the manufacture, sale, and distribution of low-proof spirit alcohol products.

2026 Regular Session Introduced by Ryan Browning and 3 co-sponsors

WV creates a new regulatory framework to manufacture, distribute, and tax low-proof spirit alcohol products (0.5%-15.5% ABV) in WV.

To House Judiciary
#alcoholicliquorsandbeers
0
WeVote Research Nonpartisan
Bill Summary · HB 5504

Bill Summary: HB 5504 (2026) – West Virginia

Relating to the manufacture, sale, and distribution of low-proof spirit alcohol products

Quick overview

  • Jurisdiction: West Virginia
  • Session: 2026
  • Bill type: Act proposal to create a new regulatory framework for Low-Proof Spirit Alcohol Products (LPSAPs)
  • Principal aim: Allow and regulate the manufacture, sale, and distribution of low-proof spirit alcohol beverages (0.5% to 15.5% ABV, up to 25 oz packaging), aligning with neighboring states’ availability while maintaining public safety and tax compliance
  • Effective date: 90 days after passage
  • Key actors: West Virginia Alcohol Beverage Control Commissioner; Tax Commissioner; distilleries/manufacturers, distributors, direct shippers, retailers

1) Purpose and policy intent

  • Declare legislative findings that regulate and control Low-Proof Spirit Alcohol Products to protect public safety, welfare, health, and morals; minimize evils of unregulated production and sales; promote temperance.
  • Recognize the role of advertising in business growth and job promotion.
  • Establish a dedicated legal framework to oversee manufacturing, distribution, and taxation of LPSAPs.

2) Core definitions and scope

  • Defines Low-Proof Spirit Alcohol Products (LPSAPs):
    • Alcohol by volume (ABV) between 0.5% and 15.5%.
    • Made by distillation and mixed with water, fruit juices, flavorings, colorings, or other ingredients.
    • Packaged in containers not exceeding 25 fluid ounces.
  • Aligns LPSAP regulation with existing categories (comparable to nonintoxicating beer, wine, and other spirits in WV code) but with specific provisions for LPSAPs.

3) Key provisions and changes

A. Manufacturing (§60-8B-3(a))

  • LPSAP manufacture is governed by existing distillery licensing and related requirements (as found in WV Code §§60-4-2, 60-4-3a) and the Commissioner’s rules.
  • No additional license fees are charged specifically for manufacturing LPSAPs beyond those for general distilleries.
  • Manufacturing must comply with standard license issuance and ongoing compliance requirements.

B. Sales (§60-8B-3(b))

  • LPSAPs may be sold by individuals or licensees authorized to manufacture, distribute, or sell LPSAPs.
  • Sales follow the same limitations and conditions as those for nonintoxicating beer.
  • Prohibition on selling LPSAPs in growlers (as defined in WV code).
  • Note: Provisions that generally require sales by manufacturers to the WV Alcohol Beverage Control Commissioner or wholesalers/retailers (Chapter 60 constraints on sales of alcoholic liquors) do not apply to LPSAPs in the same way, effectively expanding permissible sales channels within the LPSAP framework.
  • No additional license fees for selling LPSAPs.

C. Distribution (§60-8B-3(c))

  • Distribution mirrors nonintoxicating beer distribution procedures and rules.
  • Licensees must distribute to the same authorized persons and in the same manner as nonintoxicating beer.
  • Prohibition on self-distribution by manufacturers (i.e., manufacturers cannot directly distribute to retailers without following the established distribution framework).
  • No additional license fees for distribution.

D. Taxation and reporting (§60-8B-4)

  • Imposes a tax of $1.25 per gallon on all LPSAPs sold by distilleries or suppliers to distributors, and on all LPSAPs sold to West Virginia distributors or direct shippers to WV residents 21+.
  • Monthly reporting due by the 16th of each month (by distilleries, suppliers, distributors, and direct shippers) with disclosure of purchaser identity, quantity, label, ABV, and destination.
  • Reports are treated as state tax returns; late filing penalties apply if not filed within five calendar days after the 16th.
  • Administration and penalties follow WV tax procedures and taxes laws (Tax Procedure and Administration Act and Tax Crimes and Penalties Act) with applicable rulemaking authority retained by the Tax Commissioner.
  • The Tax Commissioner may propose rules to implement these provisions.

E. Rulemaking and implementation (§60-8B-5)

  • The WV Alcoholic Beverage Control Commissioner may propose legislative rules to implement the article.
  • The act’s provisions take effect 90 days after passage.

4) Who is affected

  • Distilleries and manufacturers of alcoholic beverages: manufacturing LPSAPs under existing licensing structures; taxed at $1.25 per gallon for sold products.
  • Distributors and suppliers: taxed and required to report sales of LPSAPs; must adhere to distribution rules and monthly reporting.
  • Direct shippers to WV residents age 21+: subject to taxation and reporting.
  • On-premises managers and licensees: subject to LPSAP-related sales and distribution rules; must comply with licensing standards as applicable.
  • Consumers in WV: access to low-proof products consistent with adjacent states' availability; age-21+ sales enforcement remains applicable.

5) Timelines and administrative details

  • Effective date: 90 days after enactment.
  • Monthly reporting deadline: 16th of each month for the preceding month’s activity.
  • Penalties for late reporting: apply under existing WV tax and administration statutes (5-day grace/late penalties as per §60-8-18 and related tax provisions).
  • Regulatory framework: Rules may be adopted by the WV Alcoholic Beverage Control Commissioner and the Tax Commissioner to implement the article.

6) Practical impact and considerations

  • Creates a dedicated regulatory pathway for LPSAPs, including licensing, distribution, and taxation, while aligning with WV’s existing alcohol control structure.
  • Establishes a stable tax regime for LPSAPs to generate state revenue.
  • Prohibits certain distribution and sale practices (e.g., self-distribution by manufacturers; growler sales) to ensure controlled distribution channels.
  • Aims to harmonize WV access to low-proof beverages with neighboring states, potentially affecting cross-border commerce and consumer choices.

If you’d like, I can provide a side-by-side comparison with current WV beer/wine/spirits rules or a one-page briefing for policymakers.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.