SiteProfessionals
  • Print
Alerts

Update on Senate Bill 306 Affecting Craft Breweries in Virginia

02/06/2018

Initial alert published on Senate Bill 306 Affecting Craft Breweries in Virginia

On February 5, 2018, the House of Delegates passed its nearly identical version of SB306, House Bill 422. HB422 did not contain the controversial three-barrel restriction that was stricken from HB422, but one key change was made to this bill when Delegate Greg Habeeb of Salem inserted this amendment:

“The provisions of this act shall become effective on April 30, 2022, for a brewery which has entered into: 1) a Performance Agreement with the Commonwealth of Virginia Development Opportunity Fund, on or about April 20, 2016; 2) a Performance Agreement entitled "Regarding Operation Period Economic Development Grant", on or about April 20, 2016, and 3) a commercial lease agreement, on or about April 14, 2017.”

The brewery referred to is Deschutes, which has agreed to open a large production brewery in Roanoke within the next few years. Deschutes currently operates a taproom in Downtown Roanoke where it produces six percent of the beer consumed on those premises. As mentioned previously, SB306 will require such a brewery taproom to produce on-premises at least 20 percent of the beer consumed on those premises beginning January 1, 2019. This amendment buys Deschutes over three years to come into line with the pending restrictions.

As HB422 contains Delegate Habeeb’s amendment while SB306 does not, a final version of the future law does not yet exist. Please stay tuned to LeClairRyan’s Food and Beverage Team’s page as we monitor the final stages of the bills’ progress.

Read HB422 here. 

Related Attorneys

Related Practices