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2016 SESSION

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16104150D
SENATE BILL NO. 758 Offered January 22, 2016 A BILL to amend and reenact § 4.1-219 of the Code of Virginia, relating to alcoholic beverage control; farm winery license. ---------- Patron-- Black ---------- Referred to Committee on Rehabilitation and Social Services ----------

Be it enacted by the General Assembly of Virginia:

1. That § 4.1-219 of the Code of Virginia is amended and reenacted as follows:

§ 4.1-219. Limitation on Class A and Class B farm wineries.

A. For Class A farm winery licensees, at least 51 percent of the fresh fruits or agricultural products used by the owner or lessee to manufacture the wine shall be grown or produced on such farm and no more than 25 percent of the fruits, fruit juices or other agricultural products shall be grown or produced outside the Commonwealth. Class A farm winery licensees may trade fruits or agricultural products grown or produced on such farms with other farm winery licensees. For the purposes of this subsection, such traded fruit or agricultural products shall be considered to be grown or produced on the receiving farm for the purposes of meeting the requirement that at least 51 percent of the fruits or agricultural products used to manufacture the wine shall be grown or produced on such farm, provided that the fruit or agricultural products received are grown or produced in the Commonwealth.

B. For Class B farm winery licensees, 75 percent of the fresh fruits or agricultural products used by the owner or lessee to manufacture the wine shall be grown or produced in the Commonwealth and no more than 25 percent of the fruits, fruit juices or other agricultural products shall be grown or produced outside the Commonwealth. No Class B farm winery license shall be issued to any person who has not operated under an existing Virginia farm winery license for at least seven years.

C. However, upon petition by the Department of Agriculture and Consumer Services, the Board may permit the use (i) of a greater quantity of out-of-state products if supplies grown or produced in the Commonwealth are insufficient for a farm winery licensee, whether Class A or Class B, to achieve the level of production which otherwise could be anticipated during a given license year or (ii) by a Class A farm winery of a lesser percentage of products grown or produced on the farm if unusually severe weather or disease conditions cause a significant reduction in the availability of fruit or other agricultural products grown or produced on the farm to manufacture wine during a given license year. As used in this section, the terms "owner" and "lessee" shall include a cooperative formed by an association of individuals for the purpose of manufacturing wine. The term "farm" as used in this section includes all of the land owned or leased by the farm winery licensee as long as such land is located in the Commonwealth.