Committee advances bill to cap winery late‑fee penalties, requires online filing portal for excise reports

Senator Perry outlined constituent complaints that Virginia ABC’s monthly excise reporting process for wineries is opaque and administratively burdensome. He said his bill would require an online portal for monthly excise filings and would cap or clarify late‑fee penalties so that a small-business error does not trigger an excessive, compounding penalty.

Winery owner Chris Petoskey testified he was assessed an administrative enforcement proceeding after being two days late with a $782 excise payment; under the agency’s negotiation practice he said an offer of $1,000 or a 10‑day suspension was presented. ‘‘It was almost like, we’ll shut you down for 10 days, or give us $1,000,’’ he told the committee, describing the amount as disproportionate to the tax owed.

Acting chief counsel for Virginia ABC, Latanya Hux Watkins, told senators that the agency’s regulations include the $1,000 negotiation offer and that Code also authorizes penalties up to $2,500 or suspension or revocation for a first offense. She said the agency’s voluntary negotiation process is intended to expedite resolution and that written warnings are provided before a licensee is put into the administrative process.

Committee members urged drafting clarifications about postmark versus receipt requirements and the effect of compounding late fees; several senators asked the patron to consider limits on compounding and a postmark safe harbor while the agency develops an online filing portal. The patron agreed to work with counsel and stakeholders and to include a deadline for the portal in the enactment clause; senators also signaled openness to language capping compound penalties.

Action taken: The committee adopted the substitute as amended, added friendly drafting directions and re‑referred SB 788 to Finance for further review and potential technical fixes.