By Phil Boykin, VBWA President & CEO

It was the last full week of committee work before lawmakers reach the critical “Crossover” deadline. That deadline is Tuesday (Feb. 4), when all non-budget bills must be out of their chamber of origination, otherwise they die.

During Crossover, the House and Senate can only take up bills from the opposite chamber, excluding the budget. That being the case, in recent days there were many early morning and late night committee meetings with lengthy dockets as both chambers tried to work through the thousands of introduced bills and resolutions.

In addition to all the legislative work, the budget committees are finalizing their respective proposals, which will be released this Sunday. All eyes are on the competing budgets; it is the master legislative document of any General Assembly session. The VBWA will sort through the hundreds of amendments to see if anything directly impacts beer distributors.

And finally, another big thanks to those who were able to attend January’s VBWA Legislative Conference and Day on the Hill. If you haven’t seen it already on our various social media outlets, please take the opportunity to watch the message from VBWA Board Chairman, Scott Heinz.

As always during the Session, we are meeting weekly with the VBWA Board of Directors to review bills to determine the VBWA’s positions. below the photo gallery, find highlights of those bills of interest introduced. Should you want more details, you can go directly to the bill summary, bill history and bill text by clicking the bill number.

ABC Advertising

SB909 (Stanley): Alcohol/Nicotine Advertising at Motor Speedways

Sen. Bill Stanley (R-Franklin) wants to remove a long-standing prohibition of advertising alcohol and nicotine products at motor sports facilities.

  • The latest: After lengthy testimony from Sen. Stanley, several racetrack owners and others in favor of the bill, the VBWA testified alone in opposition. The bill was defeated 9-5-1. Sen. Stanley promises to return next year with a similar proposal. 
  • VBWA position: Opposed. We recognize this is a complicated issue, but we have concerns around increased marketing to underage consumers, as well as opening the door to allowing for alcohol advertising that is currently prohibited in other sports and entertainment venues.

ABC Enforcement

HB1925 (Ward) and SB1297 (Craig): Shoplifting Enforcement

After years of relying on local law enforcement to handle policing of shoplifting in their retail stores, ABC is getting pushback from local law enforcement who resent having to dedicate resources to an entity with its own law enforcement division. The bill patrons are Del. Jeion Ward (D-Hampton) and Sen. Christie New Craig (R-Chesapeake)

  • The latest: ABC put a $6 million price tag on this bill, meaning it would need to go through a budget process to survive. As a result, the House bill was “stricken” at the request of the patron and the Senate bill was left in committee without action, with the consent of the patron.
  • VBWA position: Monitoring, as it could impact the ability of ABC to enforce trade practice issues.

HB1946 (Hope): Policing Nicotine

Del. Patrick Hope (D-Arlington) has tried for years to give a government entity the ability to license and enforce state and federal laws related to underage sales of nicotine products. HB1946 is his latest attempt in that effort.

  • The latest: There are several amendments being proposed, as well as possible budget language, so we’ll have a better idea where this issue is soon. 
  • VBWA position: Monitoring. Del. Hope is putting nicotine enforcement under ABC without adequate funding, so it could impact trade practice enforcement.

ABC Tied House Issues

HB1703 (Bulova) & SB834 (Favola): Tied House Clarification

Both bills are identical and clarifying in nature. They were introduced to protect ABC’s long-standing interpretation of the law that prevents a retailer from carrying product from a manufacturer when there is common ownership. It is feared that the existing rules could be challenged in the courts; therefore, VBWA is getting in front of the issue to modernize the code to reflect current practice. The bills are carried by Del. David Bulova (D-Fairfax) and Sen. Barbara Favola (D-Arlington).

  • The latest: There is no known opposition. Both bills have passed with unanimous support. The bills are headed to the other chamber, where the process will begin again.
  • VBWA position: ABC is in favor of the legislation, with the VBWA and Virginia Wine Wholesalers Association strongly in support.

Bottle Bills/E.P.R./Litter Tax

HJ488 (Krizek): Litter Tax Modernization Study

With bottle bill and Extended Producer Responsibility (EPR) legislation being pushed across the nation, we’ve been working with legislators on modernizing the state’s litter tax as a way to counter the proposals. We expected it to be an issue in the 2026 General Assembly, however, Del. Paul Krizek (D-Fairfax) decided to put in a study on the subject this year.

  • The latest: The study was reported on a 12-2 vote in its committee and heads to the House floor for approval.
  • VBWA position: Joining other industry groups such as the Virginia Bottlers Association, the VBWA Board voted to support the study.

Cannabis

HB2485 (Krizek) & SB970 (Rouse): Cannabis Retail Marketplace

There are multiple bills impacting how the Commonwealth will move forward with cannabis sales. However, the Krizek and Sen. Aaron Rouse (D-Virginia Beach) “marketplace” bills are the most comprehensive to date and the most likely to get to the Governor. Both create a legal framework for a cannabis marketplace. Similar bills passed in the 2024 Session, but were promptly vetoed by Gov. Youngkin. We expect the same this year for any cannabis bills that hit the Governor’s desk.

  • The latest: The Senate version passed the Senate 21-19 and now heads to the House. The House version was reported from both the House General Laws and Appropriations Committees on a largely party line vote and is on its way to the House floor. However, in his State of the Commonwealth Address at the start of session, the Governor restated that he would not support a retail market for cannabis.
  • VBWA position: Monitoring.

HJ497 (Krizek): Establishes the Joint Commission to Oversee Transition of a Retail Marketplace for Cannabis

The commission would oversee the transitioning of the Commonwealth into a retail cannabis market. The resolution was reported from Rules 10-3, and now goes to the House floor.

Employment Issues

HB1980 (Martinez): Heat Related Illness

This legislation requires the Safety and Health Codes Board to adopt regulations establishing standards designed to protect employees from heat illness. The bill from Del. Fernando Martinez (D-Loudoun) authorizes a person aggrieved by a violation of its provisions or the regulations promulgated thereunder to seek to obtain injunctive relief, to recover statutory damages of $1,000, or both, in an action commenced within one year of the cause of action. This is not a new issue and being pushed at the federal level as well.

  • The latest: The bill was heard and voted out of the full committee on a straight party vote and now heads to the full House.
  • VBWA position: Monitoring.

HB1766 (Martinez) & HB1767 (Martinez): Unemployment Benefits

Del. Martinez is proposing raising the maximum weekly benefit by $100 and increasing the length of payout to 26 weeks.

  • The latest:HB1767 was reported from Appropriations on a straight party vote, 12-9, and heads to the House floor. It remains to be seen if lawmakers will act on HB1766.
  • VBWA position: Monitoring for the potential impact on unemployment insurance rates.

HB2481 (Krizek), SB788 (Head), SB803 (McDougle), SB1112 (Williams-Graves) Workers’ Comp (Repetitive Motion)

Virginia is the last state in the nation to prohibit payout from its workers’ comp program for “repetitive motion” injuries. This is a top priority for labor advocates, so many business groups are pushing a modest proposal to counter their initiatives. The bill is backed by Del. Krizek, Sen. Christopher Head (R-Alleghany), Sen. Ryan McDougle (R-Gloucester), and Sen. Angelia Williams-Graves (D-Norfolk).

  • The latest: The House version of the bill is still awaiting action, however, the Senate Commerce and Labor Committee voted along party lines to defeat the Head and McDougle bills, then sent the Williams-Graves version to Finance to determine the fiscal impact to the state.
  • VBWA position: Monitoring.

Taxes

HB1755 (Watts): Taxing Services

Del. Vivian Watts (D-Fairfax) is attempting to modernize the Virginia tax code and capture the service industry.

  • The latest: After realizing the bill was not ready for “primetime,” Del. Watts struck her bill, killing it for the session.
  • VBWA position: Opposed. As drafted, her bill will apply a sales tax on all products delivered to beer wholesalers’ retail accounts. We do not believe that this is the intention of the patron, and are discussing with her.

SB970 (Rouse): Second Chances

Sen. Rouse, who is also running for lieutenant governor, is proposing a tax credit for any employer that hires someone previously convicted of a crime and re-entering society.

  • The latest: The VBWA voted to support the proposal.
  • VBWA position: Support.

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