Administrative Code

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Virginia Administrative Code
Title 3. Alcoholic Beverage and Cannabis Control
Agency 5. Virginia Alcoholic Beverage Control Authority
Chapter 30. Tied-House

3VAC5-30-70. Routine business entertainment; definition; permitted activities; conditions.

A. Nothing in this chapter shall prohibit a wholesaler, manufacturer, importer, or broker of alcoholic beverages licensed in the Commonwealth from providing a retail licensee "routine business entertainment" which is defined as those activities enumerated in subsection B of this section.

B. Permitted activities are:

1. Meals and beverages;

2. Concerts, theatre and arts entertainment;

3. Sports participation and entertainment;

4. Entertainment at charitable events;

5. Private parties; and

6. Local transportation in order to attend one or more of the activities permitted by this subsection.

C. The following conditions apply:

1. Such routine business entertainment shall be provided without a corresponding obligation on the part of the retail licensee to purchase alcoholic beverages or to provide any other benefit to such wholesaler or manufacturer or to exclude from sale the products of any other wholesaler or manufacturer;

2. Wholesaler or manufacturer personnel shall accompany the personnel of the retail licensee during such business entertainment;

3. Except as is inherent in the definition of routine business entertainment as contained herein, nothing in this regulation shall be construed to authorize the providing of property or any other thing of value to retail licensees;

4. No more than $400 may be spent per 24-hour period on any employee of any retail licensee, including a self-employed sole proprietor, or, if the licensee is a partnership, or any partner or employee thereof, or if the licensee is a corporation, on any corporate officer, director, shareholder of 10% or more of the stock or other employee, such as a buyer. Expenditures attributable to the spouse of any such employee, partnership or stockholder, and the like, shall not be included within the foregoing restrictions;

5. No person enumerated in subdivision 4 of this subsection may be entertained more than six times by a wholesaler and six times by a manufacturer per calendar year;

6. Wholesale licensees and manufacturers shall keep complete and accurate records for a period of three years of all expenses incurred in the entertainment of retail licensees. These records shall indicate the date and amount of each expenditure, the type of entertainment activity and retail licensee entertained; and

7. This section shall not apply to personal friends of manufacturers, importers, bottlers, brokers, or wholesalers as provided for in 3VAC5-70-100.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-3 § 7, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; Volume 4, Issue 6, January 21, 1988; Volume 5, Issue 2, eff. November 24, 1988; Volume 6, Issue 2, eff. November 23, 1989; Volume 7, Issue 4, eff. December 19, 1990; Volume 8, Issue 6, eff. January 15, 1992; Volume 9, Issue 6, eff. January 13, 1993; Volume 10, Issue 11, eff. March 23, 1994; Volume 21, Issue 19, eff. June 29, 2005; Volume 30, Issue 6, eff. December 18, 2013.

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