Administrative Code

Virginia Administrative Code
10/7/2022

Chapter 70. Other Provisions

3VAC5-70-10. Transportation of alcoholic beverages; noncommercial permits; commercial carrier permits; refusal, suspension or revocation of permits....

A. The transportation within or through this Commonwealth of alcoholic beverages lawfully purchased within this Commonwealth is prohibited, except upon a permit issued by the board, when in excess of the following limits:

1. Wine and beer. No limitation.

2. Alcoholic beverages other than those described in subdivision 1 of this subsection. Three gallons; provided, however, that not more than one gallon thereof shall be in containers containing less than 1/5 of a gallon.

If any part of the alcoholic beverages being transported is contained in a metric-sized container, the three-gallon limitation shall be construed to be 12 liters, and not more than four liters shall be in containers smaller than 750 milliliters.

The transportation within, into, or through this Commonwealth of alcoholic beverages lawfully purchased outside of this Commonwealth is prohibited, except upon a permit issued by the board, when in excess of the following limits:

Alcoholic beverages, including wine and beer. One gallon (four liters if any part is in a metric-sized container).

If satisfied that the proposed transportation is otherwise lawful, the board shall issue a transportation permit, which shall accompany the alcoholic beverages at all times to the final destination.

B. Commercial carriers desiring to engage regularly in the transportation of alcoholic beverages within, into, or through this Commonwealth shall, except as hereinafter noted, obtain a transportation permit from the board or otherwise possess acceptable documentation as required by the following provisions.

A transportation permit may be obtained by filing an application in writing upon forms furnished by the board. If satisfied that the proposed transportation is otherwise lawful, the board shall issue a transportation permit. Such permit shall not be transferable and shall authorize the carrier to engage in the regular transportation of alcoholic beverages upon condition that there shall accompany each such transporting vehicle a bill of lading or other memorandum describing the alcoholic beverages being transported and showing the names and addresses of the consignor and consignee, who shall be lawfully entitled to make and to receive the shipment. Such a bill of lading or other memorandum may serve as a transportation permit so long as it is made available for inspection to special agents of the board or any law-enforcement officer upon request.

C. The board may refuse, suspend, or revoke a carrier's transportation permit, including the use of a bill of lading or other memorandum as a transportation permit as provided in subsection B of this section, if it shall have reasonable cause to believe that alcoholic beverages have been illegally transported by such carrier or that such carrier has violated any condition of a permit. Before refusing, suspending, or revoking such permit, the board shall accord the carrier involved the same notice and opportunity to be heard and follow the same administrative procedures accorded an applicant or licensee under Title 4.1 of the Code of Virginia.

D. There shall be exempt from the requirements of this section:

1. Common carriers by water engaged in transporting lawfully acquired alcoholic beverages for a lawful consignor to a lawful consignee;

2. Persons transporting wine, beer, or cider purchased from the board or a licensee;

3. Persons transporting alcoholic beverages that may be manufactured and sold without a license;

4. A licensee transporting lawfully acquired alcoholic beverages he is authorized to sell in a vehicle owned or leased by the licensee;

5. Persons transporting alcoholic beverages to the board, or to licensees, provided that a bill of lading or a complete and accurate memorandum accompanies the shipment, and provided further, in the case of the licensee, that the merchandise is such as his license entitles him to sell;

6. Persons transporting alcoholic beverages as a part of their official duties as federal, state, or municipal officers or employees; and

7. Persons transporting lawfully acquired alcoholic beverages in a passenger vehicle, other than those alcoholic beverages referred to in subdivisions D 2 and D 3 of this section, provided the same are in the possession of the bona fide owners thereof and that no occupant of the vehicle possesses any alcoholic beverages in excess of the maximum limitations set forth in subsection A of this section.

E. This section shall not be construed to alter the one-gallon (four liters if any part is in a metric-sized container) limitation upon alcoholic beverages that may be brought into the Commonwealth pursuant to § 4.1-310 E of the Code of Virginia.

Statutory Authority

§§ 4.1-103 and 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 1, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 33, Issue 12, eff. April 15, 2017.

3VAC5-70-20. Procedures for handling cider; authorized licensees; containers; labels; markup; age limits.

A. The procedures established by regulations of the board for the handling of wine having an alcoholic content of not more than 14% by volume shall, with the necessary change of detail, be applicable to the handling of cider, subject to the following exceptions and modifications.

B. Licensees authorized to sell beer and wine, or either, at retail are hereby approved by the board for the sale of cider and such sales shall be made only in accordance with the age limits set forth in this section.

C. Containers of cider containing less than 7.0% alcohol by volume may be sold in any containers that comply with federal regulations for wine and beer provided such containers are labeled in accordance with board regulations. Cider containing 7.0% or more alcohol by volume may be sold in any containers that comply with federal regulations for wine, provided the containers are labeled in accordance with board regulations.

D. If the label of the product is subject to approval by the federal government, a copy of the federal label approval shall be provided to the board.

E. The markup or profit charged by the board shall be $.08 per liter or fractional part thereof.

F. Persons must be 21 years of age or older to purchase or possess cider.

G. The provisions of subsection A and subdivision B 4 of 3VAC5-60-20 shall not be applicable to the sale of cider by wholesale wine licensees to retail licensees of the board.

Statutory Authority

§§ 4.1-103, 4.1-111, and 4.1-213 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 2, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 18, Issue 23, eff. August 28, 2002; Volume 33, Issue 8, eff. February 3, 2017; Errata, 33:9 VA.R. 977 December 26, 2016.

3VAC5-70-30. Sacramental wine; purchase orders; permits; applications for permits; use of sacramental wine.

A. Purchase orders for sacramental wine shall be on separate order forms prescribed by the board and provided at cost if supplied by the board.

B. Sales for sacramental purposes shall be only upon permits issued by the board without cost and on which the name of the wholesaler authorized to make the sale is designated.

C. Requests for permits by a religious congregation shall be in writing, executed by an officer of the congregation, and shall designate the quantity of wine and the name of the wholesaler from whom the wine shall be purchased.

D. Wine purchased for sacramental purposes by a religious congregation shall not be used for any other purpose.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 3, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 38, Issue 1, eff. January 1, 2022.

3VAC5-70-40. Alcoholic beverages for culinary purposes; permits; purchases; restrictions.

A. The board may issue a culinary permit to a person operating an establishment where food is prepared on the premises. The board may refuse to issue or may suspend or revoke such a permit for any reason that it may refuse to issue, suspend or revoke a license.

B. Spirits shall be purchased from government stores. Wine and beer may be purchased from retail licensees when the permittee does not hold any retail on- or off-premises licenses. A permittee possessing a retail on- or off-premises license must purchase its wine and beer from wholesale licensees. However, a permittee who only has an on- or on- and off-premises beer license may purchase its wine from a retail licensee.

C. Permittees shall keep complete and accurate records of their purchases of alcoholic beverages at the permittee's place of business for two years. The records shall be available for inspection and copying by any member of the board or its special agents during reasonable hours.

D. Alcoholic beverages purchased for culinary purposes shall not be sold or used for any other purpose. They shall be stored at the permittee's place of business, separate and apart from all other commodities.

Statutory Authority

§§ 4.1-103, 4.1-111, 4.1-204 and 4.1-212 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 4, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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.

3VAC5-70-50. (Repealed.)

Historical Notes

Derived from VR125-01-7 § 5, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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.

3VAC5-70-60. Alcoholic beverages for hospitals, industrial and manufacturing users; permits; fees; storage; suspension or revocation.

A. The board may issue a yearly permit authorizing the shipment and transportation direct to the permittee of orders placed by the board for alcohol or other alcoholic beverages for any of the following purposes:

1. For industrial purposes;

2. For scientific research or analysis;

3. For manufacturing articles allowed to be manufactured under the provisions of § 4.1-200 of the Code of Virginia; or

4. For use in a hospital or home for the aged (alcohol only).

Upon receipt of alcohol or other alcoholic beverages, one copy of the bill of lading or shipping invoice, accurately reflecting the date received and complete and accurate records of the transaction, shall be forwarded to the board by the permittee.

The application for such permits shall be on forms provided by the board.

B. Applications for alcohol shall be accompanied by a fee of $10, where the order is in excess of 110 gallons during a calendar year, or a fee of $5.00 for lesser amounts. Applications for other alcoholic beverages shall be accompanied by a fee of 5.0% of the delivered cost to the place designated by the permittee. No fee shall be charged agencies of the United States or of the Commonwealth of Virginia or eleemosynary institutions.

C. A person obtaining a permit under this section shall:

1. Store such alcohol or alcoholic beverages in a secure place upon the premises designated in the application separate and apart from any other articles kept on such premises;

2. Maintain accurate records of receipts and withdrawals of alcohol and alcoholic beverages at the permittee's place of business for a period of two years; and

3. Furnish to the board within 10 days after the end of the calendar year for which he was designated a permittee, a statement setting forth the amount of alcohol or alcoholic beverages on hand at the beginning of the previous calendar year, the amount purchased during the year, the amount withdrawn during the year, and the amount on hand at the end of the year.

D. The board may refuse to designate a person as a permittee if it shall have reasonable cause to believe either that the alcohol or alcoholic beverages would be used for an unlawful purpose, or that any cause exists under § 4.1-222 of the Code of Virginia for which the board might refuse to grant the applicant any license.

E. The board may suspend or revoke the designation as a permittee if it shall have reasonable cause to believe that the permittee has used or allowed to be used any alcohol or alcoholic beverages obtained under the provisions of this section for any purpose other than those permitted under the Code of Virginia, or has done any other act for which the board might suspend or revoke a license under § 4.1-225 of the Code of Virginia.

F. The board and its special agents shall have free access during reasonable hours to all places of storage and records required to be kept pursuant to this section for the purpose of inspection and examining such place and such records.

Statutory Authority

§§ 4.1-103, 4.1-111, 4.1-200, 4.1-204 and 4.1-229 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 6, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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.

3VAC5-70-70. Permits for persons having alcoholic beverages distilled; limitations.

A. Any person who contracts with or engages a licensed distiller to manufacture spirits from grain fruit, fruit products or other substances grown or lawfully produced by such person shall obtain a board permit before withdrawing the spirits from the distillery's premises. The permit shall accompany the shipment at all times. The application for the permit shall include the following:

1. The name, address and license number, if any of the consignee;

2. The kind and quantity in gallons of alcoholic beverages; and

3. The name of the company employed to transport the shipment.

B. Permits shall be issued only for (i) spirits shipments to the board, (ii) sales and shipments to a lawful consignee outside the Commonwealth under a bona fide written contract, or (iii) shipments of spirits samples to the person growing or producing the substance distilled. Samples shall be packaged in containers of 375 or 750 milliliters and the words "Sample-Not for Sale" shall be printed in letters of reasonable size on the label.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 7, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 38, Issue 1, eff. January 1, 2022.

3VAC5-70-80. (Repealed.)

Historical Notes

Derived from VR125-01-7 § 8, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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.

3VAC5-70-90. Records to be kept by licensees generally; additional requirements for certain retailers; "sale" and "sell" defined; gross receipts; reports.

A. All licensees shall keep complete, accurate and separate records for a period of two years. The records shall be available for inspection and copying by any member of the board or its special agents during reasonable hours. Licensees may use microfilm, microfiche, disks, or other available technologies for the storage of their records, and may store them off site, provided the records so stored are readily subject to retrieval and made available for viewing on a screen or in hard copy by the board or its special agents at the licensed premises between the hours of 9 a.m. and 5 p.m. At any other time of day, if the licensee's records are not available for inspection, the licensee shall provide the records to a special agent of the board within 24 hours after a request is made to inspect the records.

The board and its special agents shall be allowed free access during reasonable hours to every place in the Commonwealth where alcoholic beverages are manufactured, bottled, stored, offered for sale or sold, for the purpose of examining and inspecting all records, invoices and accounts therein.

"Reasonable hours" shall be deemed to include all business hours of operation and any other time at which there exists any indication of activity upon the licensed premises.

B. All licensed manufacturers, bottlers or wholesalers of alcoholic beverages shall keep a complete, accurate and separate record of all alcoholic beverages manufactured, bottled, purchased, sold or shipped by him. Such records shall show the quantities of all such alcoholic beverages manufactured, bottled, purchased, sold or shipped by him; the dates of all sales, purchases, deliveries or shipments; the names and addresses of all persons to or from whom such sales, purchases, deliveries or shipments are made; the quantities and kinds of alcoholic beverages sold and delivered or shipped and the prices charged therefor and the taxes applicable thereto, if any. Every manufacturer and wholesaler, at the time of delivering alcoholic beverages to any person, shall also prepare a duplicate invoice showing the date of delivery, the quantity and value of each delivery and the name of the purchaser to whom the delivery is made.

C. Every retail licensee shall keep complete, accurate and separate records, including invoices, of the purchases and sales of alcoholic beverages, food and other merchandise. The records of alcoholic beverages shall be kept separate and apart from other records and shall include all purchases thereof, the dates of such purchases, the kinds and quantities of alcoholic beverages purchased, the prices charged therefor and the names and addresses of the persons from whom purchased.

Additionally, each retail licensee shall keep accurate accounts of daily sales, showing quantities of alcoholic beverages, food, and other merchandising sold and the prices charged therefor.

D. In addition to the requirements of subsections A and C of this section, mixed beverage restaurant licensees shall keep records of all alcoholic beverages purchased for sale as mixed beverages and records of all mixed beverage sales. The following actions shall also be taken:

1. On delivery of a mixed beverage restaurant license by the board, the licensee shall furnish to the board or its special agents a complete and accurate inventory of all alcoholic beverages currently held in inventory on the premises by the licensee; and

2. Once a year, each licensee shall submit on prescribed forms to the board an annual review report. The report is due within 30 days after the end of the mixed beverage license year and shall include:

a. A complete and accurate inventory of all alcoholic beverages purchased for sale as mixed beverages and held in inventory at the close of business at the end of the annual review period;

b. An accounting of the annual purchases of food, nonalcoholic beverages and alcoholic beverages, including alcoholic beverages purchased for sale as mixed beverages, and miscellaneous items; and

c. An accounting of the monthly and annual sales of all merchandise specified in subdivision 2 b of this subsection.

E. The terms "sale" and "sell" shall include exchange, barter or traffic, or delivery made otherwise than gratuitously, by any means whatsoever, of mixed beverages and other alcoholic beverages, and of meals or food.

F. In determining "gross receipts from the sale of food" for the purposes of § 4.1-206.3 of the Code of Virginia, a licensee shall not include any receipts for food for which there was no sale, as defined in this section. Food which is available at an unwritten, non-separate charge to patrons or employees during Happy Hours, private social gatherings, promotional events, or at any other time, shall not be included in the gross receipts. Food shall include hors d'oeuvres.

If in conducting its review pursuant to § 4.1-114 of the Code of Virginia, the board determines that the licensee has failed or refused to keep complete and accurate records of the amounts of mixed beverages or other alcoholic beverages sold at regular prices, as well as at all various reduced and increased prices offered by the licensee, the board may calculate the number of mixed drinks and other alcoholic beverage drinks sold, as determined from purchase records, and presume that such sales were made at the highest posted menu prices for such merchandise.

G. Any changes in the officers, directors or shareholders owning 10% or more of the outstanding capital stock of a corporation shall be reported to the board within 30 days; provided, however, that corporations or their wholly owned subsidiaries whose corporate common stock is publicly traded and owned shall not be required to report changes in shareholders owning 10% or more of the outstanding capital stock.

H. All banquet and special event licensees in charge of public events shall report to the board the income and expenses associated with the public event on a form prescribed by the board when the licensee engages another person to organize, conduct or operate the event on behalf of the licensee. Reports shall be made within 90 days after the date of each event. "Public events" shall be deemed to include any event at which alcoholic beverages are sold to the general public and not only to personally invited guests.

All applicants for banquet or special event licenses shall indicate at the time of application whether the event is open to the public and whether another person has been or will be engaged to organize, conduct or operate the event on behalf of the licensee. If the applicant indicates that the event is open to the public and another person has been or will be engaged to organize, conduct or operate the event on behalf of the licensee, the applicant shall attach a copy of any contract between the applicant and such other person to the license application.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 9, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 18, Issue 23, eff. August 28, 2002; Volume 28, Issue 7, eff. January 19, 2012; Volume 30, Issue 6, eff. December 18, 2013; Volume 38, Issue 1, eff. January 1, 2022.

3VAC5-70-95. Proration of license tax for businesses destroyed by natural disaster.

The board shall make refunds of the state license tax paid pursuant to subsection A of § 4.1-231 of the Code of Virginia to licensees whose place of business designated in the license is destroyed by an act of God, including but not limited to fire, earthquake, hurricane, storm, or similar natural disaster or phenomenon, upon the following schedule:

If the destruction takes place within the first three months of the license year, 75% of the license tax shall be refunded. If the destruction takes place within the second three months of the license year, 50% of the license tax shall be refunded. If the destruction takes place within the third three months of the license year, 25% of the license tax shall be refunded. No refund shall be issued if the destruction takes place within the last three months of the license year.

Statutory Authority

§§ 4.1-103 and 4.1-111 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 30, Issue 6, eff. December 18, 2013.

3VAC5-70-100. Gifts of alcoholic beverages generally; exceptions; wine and beer tastings; taxes and records.

A. Gifts of alcoholic beverages by a licensee to any other person are prohibited except as otherwise provided in this section or as provided in §§ 4.1-119 G, 4.1-201, 4.1-201.1, 4.1-206.3, 4.1-209, 4.1-215, 4.1-325, and 4.1-325.2 of the Code of Virginia.

B. Gifts of alcoholic beverages may be made by licensees as follows:

1. Personal friends. Gifts may be made to personal friends as a matter of normal social intercourse when in no wise a shift or device to evade the provisions of this section.

2. Samples. A representative of a wholesaler, winery, brewery, or importer may give a retail licensee a sample serving or a container not then sold by such licensee of wine or beer if (i) the licensee is licensed to sell such product, provided that in the case of containers, the container does not exceed 52 fluid ounces in size (1.5 liters if in a metric-sized container) and (ii) the label bears the word "Sample" in lettering of reasonable size. Such samples may not be sold. For good cause shown the board may authorize a larger sample container. Samples must be obtained from licensed wholesalers or purchased from retail licensees in the Commonwealth.

3. Gifts by retail licensees. An on-premises retail licensee may give a gift of one alcoholic beverage to a patron or one bottle of wine to a group of two or more patrons provided that such gifts are made to patrons to whom such alcoholic beverages may be sold. No subsequent gift shall be provided to the same patrons within 24 hours.

4. Hospitality rooms; conventions. The following activities are permitted:

a. A brewer or vintner may give samples of his products to visitors to his winery or brewery for consumption on premises only in a hospitality room approved by the board, provided the donees are persons to whom such products may be lawfully sold; and

b. A manufacturer, importer, bottler, broker, or wholesaler may host an event at conventions of national, regional or interstate associations or foundations organized and operated exclusively for religious, charitable, scientific, literary, civil affairs, educational or national purposes upon the premises occupied by such licensee, or upon property of the licensee contiguous to such premises, or in a development contiguous to such premises, owned and operated by the licensee or a wholly owned subsidiary.

5. Conventions; educational programs, including alcoholic beverage tastings; research; licensee associations. Manufacturers, importers, bottlers, brokers, and wholesalers may donate alcoholic beverages to:

a. A convention, trade association or similar gathering, composed of licensees and their guests, when the alcoholic beverages donated are intended for consumption during the convention;

b. Retail licensees attending a bona fide educational program relating to the alcoholic beverages being given away;

c. Research departments of educational institutions, or alcoholic research centers, for the purpose of scientific research on alcoholism; and

d. Official associations of alcoholic beverage industry members when conducting a bona fide educational program concerning alcoholic beverages, with no promotion of a particular brand, for members and guests of particular groups, associations, or organizations.

6. Conditions. Exceptions authorized by subdivisions 4 b and 5 of this subsection are conditioned upon the following:

a. That prior written notice of the activity be submitted to the board describing it and giving the date, time and place of such activity; and

b. That the activity be conducted in a room or rooms set aside for that purpose and be adequately supervised.

C. Wine and beer wholesalers may participate in a wine or beer tasting sponsored by a gourmet shop licensee for its customers and may provide educational material, oral or written, pertaining thereto, as well as participate in the pouring of such wine or beer.

D. Any gift authorized by this section shall be subject to the taxes imposed on sales by Title 4.1 of the Code of Virginia, and complete and accurate records shall be maintained.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 10, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 23, Issue 13, eff. May 19, 2007; Volume 30, Issue 6, eff. December 18, 2013; Volume 32, Issue 20, eff. July 15, 2016; Volume 32, Issue 21, eff. July 28, 2016; Volume 38, Issue 1, eff. January 1, 2022.

3VAC5-70-110. Release of alcoholic beverages from customs and bonded warehouses; receipts; violations; limitation upon sales.

A. Alcoholic beverages held in a United States customs bonded warehouse may be released therefrom for delivery to:

1. The board;

2. A person holding a license authorizing the sale of the alcoholic beverages at wholesale;

3. Boats actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or trade between the United States and any of its possessions outside of the several states and the District of Columbia; or

4. Persons for shipment outside the Commonwealth to someone legally entitled to receive the same under the laws of the state of destination.

Releases to any other person shall be under a permit issued by the board and in accordance with the instructions therein set forth.

B. A copy of the permit, if required, shall accompany the alcoholic beverages until delivery to the consignee. The consignee, or his duly authorized representative, shall acknowledge receipt of delivery upon a copy of the permit, which receipted copy shall be returned to the board by the permittee within 10 days after delivery.

C. The board may refuse to issue additional permits to a permittee who has previously violated any provision of this section.

D. A maximum of six imperial gallons of alcoholic beverages may be sold, released and delivered in any 30-day period to any member of foreign armed forces personnel.

Statutory Authority

§§ 4.1-103, 4.1-111, 4.1-131, 4.1-132, 4.1-204, 4.1-212 and 4.1-214 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 11, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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.

3VAC5-70-120. Approval of warehouses for storage of alcoholic beverages not under customs or internal revenue bond; segregation of merchandise....

A. Upon the application of a person qualified under the provisions of § 4.1-130 of the Code of Virginia, the board may issue a certificate of approval for the operation of a warehouse for the storage of lawfully acquired alcoholic beverages not under customs bond or internal revenue bond, if satisfied that the warehouse is physically secure.

B. The alcoholic beverages of each owner shall be kept separate and apart from merchandise of any other person.

C. Alcoholic beverages shall be released for delivery to persons lawfully entitled to receive the same only upon permit issued by the board, and in accordance with the instructions therein set forth. The owner of the alcoholic beverages, or the owner or operator of the approved warehouse as agent of such owner, may apply for release permits, for which a charge may be made by the board.

D. Complete and accurate records shall be kept at the warehouse for a period of two years, which records shall be available during reasonable hours for inspection by a member of the board or its special agents. Such records shall include the following information as to both receipts and withdrawals:

1. Name and address of owner or consignee;

2. Date of receipt or withdrawal, as the case may be; and

3. Type and quantity of alcoholic beverage.

E. Alcoholic beverages stored by licensees pursuant to 3VAC5-50-90 are excepted from the operation of this section.

Statutory Authority

§§ 4.1-103, 4.1-111, 4.1-130 and 4.1-204 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 12, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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.

3VAC5-70-130. Special mixed beverage licenses; locations; special privileges; taxes on licenses.

A. Special mixed beverage licenses may be granted to persons by the board at places primarily engaged in the sale of meals where the place to be occupied is owned by the government of the United States, or any agency thereof, is located on land used as a port of entry or egress to and from the United States, and otherwise complies with the requirements of § 7.1-21.1 of the Code of Virginia, which licenses shall convey all of the privileges and be subject to all of the requirements and regulations pertaining to mixed beverage restaurant licensees, except as otherwise altered or modified herein.

B. "Meals" need not be "full meals," but shall at least constitute "light lunches," and the gross receipts from the sale of food and nonalcoholic beverages at such establishment shall be not less than 45% of the gross receipts from the sale of mixed beverages and food.

C. The annual tax on a special mixed beverage license shall be $500 and shall not be prorated; provided, however, that if application is made for a license of shorter duration, the tax thereon shall be $25 per day.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 13, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 38, Issue 1, eff. January 1, 2022.

3VAC5-70-140. Definitions and requirements for wine licenses; wine; wine coolers.

Wherever the term "wine" appears in this chapter, it shall include "wine coolers" as defined in § 4.1-100 of the Code of Virginia. Wine coolers shall be treated as wine for the purposes of the regulations, except for purposes of taxation and shipments from points outside the Commonwealth to installations of the United States armed forces located within the Commonwealth for resale on such installations, in accordance with §§ 4.1-112 and 4.1-236 of the Code of Virginia and 3VAC5-60-70.

Any person licensed to manufacture, bottle or sell wine shall not be required to pay any additional state tax for any license to manufacture, bottle or sell, as the case may be, any wine cooler. Such person shall have the privilege to manufacture, bottle or sell any wine cooler under the provisions of Title 4.1 of the Code of Virginia as long as his license remains in full force and effect.

Statutory Authority

§§ 4.1-100, 4.1-103, 4.1-111, 4.1-112, 4.1-204 and 4.1-236 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 14, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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.

3VAC5-70-150. Wholesale alcoholic beverage sales; winery and brewery discounts, price-fixing; price increases; price discrimination; inducements.

A. No winery as defined in § 4.1-401 or brewery as defined in § 4.1-500 of the Code of Virginia shall require a wholesale licensee to discount the price at which the wholesaler shall sell any alcoholic beverage to persons holding licenses authorizing sale of such merchandise at retail. No winery, brewery, bottler or wine or beer importer shall in any other way fix or maintain the price at which a wholesaler shall sell any alcoholic beverage.

B. No winery as defined in § 4.1-401 or brewery as defined in § 4.1-500 of the Code of Virginia shall increase the price charged any person holding a wholesale license for alcoholic beverages except by written notice to the wholesaler signed by an authorized officer or agent of the winery, brewery, bottler or importer which shall contain the amount and effective date of the increase.

No increase shall take effect prior to 30 calendar days following the date on which the notice is postmarked; provided that the board may authorize such price increases to take effect with less than the aforesaid 30 calendar days' notice if a winery, brewery, bottler or importer so requests and demonstrates good cause therefor.

The provisions of this subsection shall not apply in any case where the importer required to provide notice of a price increase and the wholesaler to whom notice is to be provided are the same person.

C. No winery as defined in § 4.1-401 or brewery as defined in § 4.1-500 of the Code of Virginia shall discriminate in price of alcoholic beverages between different wholesale purchasers except where the difference in price charged by such winery or brewery is due to a bona fide difference in the cost of sale or delivery, or where a lower price was charged in good faith to meet an equally low price charged by a competing winery or brewery on a brand and package of like grade and quality. Where such difference in price charged to any such wholesaler does occur, the board may ask and the winery or brewery shall furnish written substantiation for the price difference.

D. No person holding a license authorizing the sale of alcoholic beverages at wholesale shall knowingly induce or receive a discrimination in price prohibited by subsection C of this section.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 15, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 23, Issue 13, eff. May 19, 2007; Volume 30, Issue 6, eff. December 18, 2013.

3VAC5-70-160. Farm wineries; percentage of Virginia products; other agricultural products; remote outlets.

A. No more than 25% of the fruits, fruit juices or other agricultural products used by the farm winery licensee shall be grown or produced outside the Commonwealth, except upon permission of the board as provided in § 4.1-219 of the Code of Virginia. This 25% limitation applies to the total production of the farm winery, not individual brands or labels.

B. The term "other agricultural products," as used in subsection A of this section, includes wine.

C. A farm winery license limits retail sales to the premises of the winery and to five additional retail establishments that need not be located on the premises. These five additional retail outlets may be moved throughout the state as long as advance board approval is obtained for the location, equipment and facilities of each remote outlet.

Statutory Authority

§§ 4.1-103 and 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 16, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 23, Issue 13, eff. May 19, 2007.

3VAC5-70-170. Credit and debit cards.

Government stores may accept credit or debit cards from consumers and licensees for the purchase of alcoholic beverages. The board may establish policies to set purchase requirements, determine the credit or debit cards that will be accepted, provide for the collection of related fees, penalties or service charges where appropriate, establish credit procedures for returned merchandise and make any other decisions to carry out the purpose of this chapter.

Statutory Authority

§§ 4.1-103, 4.1-111 and 4.1-119 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 17, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 17, Issue 10, eff. February 8, 2001.

3VAC5-70-180. Regulation of the sale of alcoholic beverages in kegs and other containers; permit and registration; other requirements.

A. The following definitions shall apply for purposes of this section:

1. "Keg." Any container capable of holding four gallons or more of beer or wine and which is designed to dispense beer or wine directly from the container for purposes of consumption; and

2. "Registration seal." Any document, stamp, declaration, seal, decal, sticker or device approved by the board which is designed to be affixed to kegs and which displays a registration number and such other information as may be prescribed by the board.

B. 1. No person licensed to sell wine or beer at retail for off-premises consumption, or any officer, agent or employee thereof, shall sell any such alcoholic beverage in a keg without having (i) registered the sale on a form prescribed by the board and (ii) affixed a registration seal on the keg at the time of sale; provided, if the purchaser takes possession of the keg at the premises of the wholesale licensee pursuant to subsection G, the wholesale licensee shall affix the registration seal.

2. Prior to the sale of alcoholic beverages in kegs, the keg registration declaration and receipt form provided by the board shall be properly completed and shall contain:

a. The name and address of the purchaser verified by valid identification as defined in 3VAC5-50-20 B;

b. The type and number of the identification presented by the purchaser;

c. A statement, signed by the purchaser, that the purchaser is 21 years of age or older, does not intend to allow persons under 21 years of age to consume the alcoholic beverages purchased, and that the purchaser will not remove or obliterate the key registration tag affixed to the keg or allow its removal or obliteration; and

d. The particular address or location where the keg will be consumed, and the date or dates on which it will be consumed.

3. Where the purchaser obtains more than one keg for consumption at the same location and on the same date, only one keg registration declaration and receipt form must contain all required information. All other keg registration declaration and receipt forms for that particular transaction shall contain the registration number from the fully completed form as a reference and be signed by the purchaser. Such keg registration declaration and receipt forms which contain the reference number of a fully completed form and have been signed by the purchaser constitute a valid and properly completed keg registration and declaration receipt.

4. The keg registration seal affixed to the keg may serve as the purchaser's receipt. Upon receipt of a properly registered keg from a consumer, the retail licensee shall remove and obliterate the keg registration seal from the keg and note such action on the keg registration declaration and receipt form to be retained by the retail licensee on the licensed premises. Kegs made of disposable packaging do not have to be returned to the retail licensee. The retailer shall indicate on the keg declaration and receipt form that the keg was not returnable due to its disposable packaging.

C. For the purpose of tracing the kegs and purchaser responsibility, it shall be the responsibility of the seller to affix the properly completed and signed keg registration seal to all containers of four gallons or more of alcoholic beverages prior to the container leaving control of the seller.

D. Except in accordance with this section, no person shall remove, alter, deface, or obliterate the registration seal affixed to a keg pursuant to this section. Throwing away empty kegs made of disposable packaging shall not constitute obliteration of the keg registration seal. If any nonlicensee is in possession of a keg containing alcoholic beverages, and which keg does not bear the registration seal, or upon which keg the registration seal has been altered, defaced or obliterated, the container and its contents shall be deemed to be contraband and subject to seizure and forfeiture.

E. Licensees shall maintain a complete and accurate record of all registration forms and other documentation of the sale of kegs at the place of business designated in his license for a period of one year. Such records shall include the registration seal for nondisposable kegs, which the retail licensee shall remove from the keg upon its return by the purchaser. Moreover, such records regarding keg sales shall during reasonable hours be open to inspection by the board or its special agents or other law-enforcement officers.

F. Before a purchaser may take possession of a keg at the premises of the wholesale licensee after purchasing such keg from a retail licensee, the purchaser shall be required to (i) complete the registration of the transaction at the premises of the retail licensee and (ii) deliver the registration seal to the wholesale licensee who shall affix it to the keg; however, no wholesale licensee may deliver possession of any such keg to the purchaser until the wholesale licensee has collected payment from the retail licensee pursuant to 3VAC5-30-30.

G. Except as authorized by the board, no person shall transfer possession of or give the registered keg or container to another person. This prohibition shall not apply, however, to the return of the registered container to the seller.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 18, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 38, Issue 1, eff. January 1, 2022.

3VAC5-70-190. Waiver of banquet license tax; qualifications; restrictions and conditions; exceptions.

A. Pursuant to § 4.1-111 of the Code of Virginia, the board may waive the banquet license tax for a duly organized not-for-profit corporation or association holding a nonprofit event. A "nonprofit event" means income from the event shall not exceed expenses for the event. Fixed costs, including but not limited to staff salaries, rent, utilities and depreciation, shall not be included as expenses.

B.1. The applicant shall sign an affidavit certifying the not-for-profit status of the corporation or association and that the event being held is nonprofit.

2. The applicant may serve alcoholic beverages in any combination, the amount to be no more than that which equals the total alcohol content by volume in two kegs of beer (31 gallons).

3. The granting of a waiver is limited to two events per fiscal year (July 1 - June 30) for any qualifying corporation or association.

C. The board may issue a permit authorizing a variance from subdivision B 2 for good cause shown.

Statutory Authority

§§ 4.1-103, 4.1-111, and 4.1-204 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 19, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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.

3VAC5-70-200. Grain alcohol; permits; qualifications; records; refusal, suspension, or revocation.

A. The board may issue a yearly permit authorizing the permittee to purchase grain alcohol with a proof greater than 101 at government stores for any of the following purposes:

1. Industrial use;

2. Commercial use;

3. Culinary use; or

4. Medical use.

During the period July 1, 2017, through June 30, 2022, the board may issue a yearly permit authorizing the permittee to purchase grain alcohol with a proof greater than 151 at government stores for any of the purposes listed in this subsection.

B. The application for such permits shall be on forms provided by the board.

C. Permits may be issued to legitimate businesses for any one or more of the purposes stated in subsection A of this section upon presentation of satisfactory evidence of the conduct of the business activity involved. For good cause shown, the board may issue a permit to an individual for any of the uses stated in subsection A of this section.

D. A person obtaining a permit shall maintain complete and accurate records of all purchases for a period of two years. The board and its special agents shall have free access during reasonable hours to all records required to be kept pursuant to this section.

E. The board may refuse to issue, suspend, or revoke a permit if the board has reasonable cause to believe that (i) the permittee would use, has used, or allowed to be used grain alcohol for any unlawful purpose or (ii) any cause exists under § 4.1-222 of the Code of Virginia for which the board may refuse to grant the applicant any license or has done any act for which the board might suspend or revoke a license under § 4.1-225 of the Code of Virginia.

Statutory Authority

§§ 4.1-103 and 4.1-111 of the Code of Virginia.

Historical Notes

Derived from VR125-01-7 § 20, eff. December 12, 1985; amended, Virginia Register Volume 3, Issue 1, eff. November 12, 1986; 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 33, Issue 21, eff. July 12, 2017.

3VAC5-70-210. Schedule of penalties for first-offense violations.

A. Any licensee charged with any violation of board regulations or statutes listed in this subsection, if the licensee has no other pending charges and has not had any substantiated violations of regulation or statute within the three years immediately preceding the date of the violation, may enter a written waiver of hearing and (i) accept the period of license suspension set forth in this subsection for the violation, or (ii) pay the civil charge set forth in this subsection for the violation in lieu of suspension. In the case of a violation involving the sale of beer, wine, or mixed beverages to a person at least 18 but younger than 21 years of age, or to an intoxicated person, or allowing consumption of such beverages by such person, any retail licensee that can demonstrate that it provided alcohol seller or server training certified in advance by the board to the employee responsible for such violation within the 12 months immediately preceding the alleged violation may accept the lesser period of license suspension or pay the lesser civil charge listed for the violation in lieu of suspension. Any notice of hearing served on a licensee for a violation covered by this section shall contain a notice of the licensee's options under this section. Any licensee who fails to notify the board of its intent to exercise one of the options provided for under this section within 20 days after the date of mailing of the notice of hearing shall be deemed to have waived the right to exercise such options, and the case shall proceed to hearing. For good cause shown, the board may, in its discretion, allow a licensee to exercise the options provided for under this section beyond the 20-day period.

VIOLATION

SUSPENSION

CIVIL CHARGE

SUSPENSION WITH CERTIFIED TRAINING

CIVIL CHARGE WITH CERTIFIED TRAINING

Sale of beer, wine, or mixed beverages to a person at least 18 but younger than 21 years of age.

25 days

$2,500

5 days

$1,500

Allowing consumption of beer, wine, or mixed beverages by a person at least 18 but younger than 21 years of age.

25 days

$2,500

5 days

$1,500

Aiding and abetting the purchase of alcoholic beverages by a person at least 18 but younger than 21 years of age.

10 days

$1,250

Keeping unauthorized alcoholic beverages on the premises, upon which appropriate taxes have been paid.

7 days

$750

Allow an intoxicated person to loiter on the premises.

7 days

$750

Sale to an intoxicated person.

25 days

$2,500

5 days

$1,500

Allow consumption by an intoxicated person.

25 days

$2,500

5 days

$1,500

After hours sales or consumption of alcoholic beverages.

10 days

$1,250

No designated manager on premises.

7 days

$750

Invalid check to wholesaler or board.

7 days

$500

Inadequate illumination.

7 days

$750

ABC license not posted.

7 days

$750

Not timely submitting report required by statute or regulation.

7 days

$750

Designated manager not posted.

7 days

$750

Person younger than 18 years of age serving alcoholic beverages; younger than 21 years of age acting as bartender.

7 days

$750

Sale of alcoholic beverages in unauthorized place or manner.

10 days

$1,250

Consumption of alcoholic beverages in unauthorized area.

7 days

$750

Removal of alcoholic beverages from authorized area.

7 days

$750

Failure to obliterate mixed beverage stamps.

7 days

$750

Employee on duty consuming alcoholic beverages.

7 days

$750

Conducting illegal happy hour.

7 days

$750

Illegally advertising happy hour.

7 days

$750

Unauthorized advertising.

7 days

$750

Failure to remit state beer or wine tax (if deficiency has been corrected).

10 days

$1,250

Wholesaler sale of beer or wine in unauthorized manner.

10 days

$1,250

Wholesaler sale of beer or wine to unauthorized person.

10 days

$1,250

B. For purposes of this section, the Virginia Alcoholic Beverage Control Authority will certify alcohol seller or server training courses that provide instruction on all the topics listed on the Seller/Server Training Evaluation form. The following steps should be completed to submit a training program for approval:

1. Complete the Alcohol Seller/Server Training Data Sheet and review the Seller/Server Training Evaluation form to make sure the program will meet the listed criteria; and

2. Submit the Alcohol Seller/Server Training Data Sheet and a copy of the proposed training program materials for review. Materials submitted should include copies of any lesson plans and instructional materials used in the training program.

Requests for certification of training courses should be sent to:

Virginia Alcoholic Beverage Control Authority

Education Section

P.O. Box 27491

Richmond, VA 23261

Email: education@abc.virginia.gov

Persons in charge of any certified alcohol server training course shall maintain complete records of all training classes conducted, including the date and location of each class and the identity of all those successfully completing the course.

C. For a licensee that operates more than one retail establishment, each such establishment shall be considered a separate licensee for the purpose of this section.

Statutory Authority

§§ 4.1-111 and 4.1-227 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 17, Issue 10, eff. February 28, 2001; amended, Virginia Register Volume 27, Issue 12, eff. March 16, 2011; Volume 30, Issue 6, eff. December 18, 2013; Volume 35, Issue 26, eff. September 21, 2019.

3VAC5-70-220. Wine or beer shipper's licenses, Internet wine retailer licenses, and Internet beer retailer licenses; application process; common carriers; records.

A. Any person or entity qualified for a wine and beer shipper's license pursuant to § 4.1-209.1 of the Code of Virginia, or an Internet wine and beer retailer license pursuant to subdivision F 2 of - § 4.1-206.3 of the Code of Virginia, must apply for such license by submitting form 805-52, Application for License. In addition to the application, each applicant shall submit as attachments a list of all brands of wine or beer sought to be shipped by the applicant, along with the board-assigned code numbers for each brand or a copy of the label approval by the appropriate federal agency for any brand not previously approved for sale in Virginia pursuant to 3VAC5-40-20 that will be sold only through direct shipment to consumers.

If the applicant is not also the brand owner of the brands listed in the application, the applicant shall obtain and submit with the application a dated letter identifying each brand, from the brand owner or any wholesale distributor authorized to distribute the brand, addressed to the Supervisor, Tax Management Section, Virginia Alcoholic Beverage Control Authority, indicating the brand owner's or wholesale distributor's consent to the applicant's shipping the brand to Virginia consumers.

The applicant shall attach (i) a photocopy of its current license as a winery, farm winery, brewery, or alcoholic beverage retailer issued by the appropriate authority for the location from which shipments will be made and (ii) evidence of the applicant's registration with the Virginia Department of Taxation for the collection of Virginia retail sales tax.

B. Any brewery, winery, or farm winery that applies for a shipper's license or consents to the application by any other person, other than a retail off-premises licensee, for a license to ship such brewery's, winery's, or farm winery's brands of wine or beer shall notify all wholesale licensees that have been authorized to distribute such brands in Virginia that an application for a shipper's license has been filed. Such notification shall be by a dated letter to each such wholesale licensee, setting forth the brands that wholesaler has been authorized to distribute in Virginia for which a shipper's license has been applied. A copy of each such letter shall be forwarded to the Supervisor, Tax Management Section, by the brewery, winery, or farm winery.

C. Any holder of a wine and beer shipper's license or Internet wine and beer retailer's license may add or delete brands to be shipped by letter to the Supervisor, Tax Management Section, designating the brands to be added or deleted. Any letter adding brands shall be accompanied by any appropriate brand-owner consents or notices to wholesalers as required with an original application.

D. Any brand owner that consents to a holder of a wine and beer shipper's license or Internet wine and beer retailer's license shipping its brands to Virginia consumers may withdraw such consent by a dated letter to the affected wine and beer shipper's licensee or Internet wine and beer retailer's licensee. Copies of all such withdrawals shall be forwarded by the brand owner, by certified mail, return receipt requested, to the Supervisor, Tax Management Section. Withdrawals shall become effective upon receipt of the copy by the Tax Management Section, as evidenced by the postmark on the return receipt.

E. Wine and beer shipper's licensees and Internet wine and beer retailer's licensees shall maintain for two years complete and accurate records of all shipments made under the privileges of such licenses, including for each shipment:

1. Number of containers shipped;

2. Volume of each container shipped;

3. Brand of each container shipped;

4. Names and addresses of recipients; and

5. Price charged.

The records required by this subsection shall be made available for inspection and copying by any member of the board or its special agents upon request.

F. On or before the 15th day of each month, each wine and beer shipper's licensee or Internet wine and beer retailer's licensee shall file with the Supervisor, Tax Management Section, either in paper form or electronically as directed by the department, a report of activity for the previous calendar month. Such report shall include:

1. Whether any shipments were made during the month; and

2. If shipments were made, the following information for each shipment:

a. Number of containers shipped;

b. Volume of each container shipped;

c. Brand of each container shipped;

d. Names and addresses of recipients; and

e. Price charged.

Unless otherwise paid, payment of the appropriate beer or wine tax shall accompany each report.

G. All shipments by holders of wine and beer shipper's licenses or Internet wine and beer retailer's licenses shall be by approved common carrier only. Common carriers possessing all necessary licenses or permits to operate as common carriers in Virginia may apply for approval to provide common carriage of wine or beer, or both, shipped by holders of wine and beer shipper's licenses or Internet wine and beer retailer's licenses, by dated letter to the Supervisor, Tax Management Section, requesting such approval and agreeing to perform deliveries of beer or wine shipped, maintain records, and submit reports in accordance with the requirements of this section. The board may refuse, suspend, or revoke approval if it shall have reasonable cause to believe that a carrier does not possess all necessary licenses or permits, that a carrier has failed to comply with the regulations of the board, or that a cause exists with respect to the carrier that would authorize the board to refuse, suspend, or revoke a license pursuant to Title 4.1 of the Code of Virginia. Before refusing, suspending, or revoking such approval, the board shall follow the same administrative procedures accorded an applicant or licensee under Title 4.1 of the Code of Virginia and regulations of the board.

H. When attempting to deliver wine or beer shipped by a wine and beer shipper's licensee or Internet wine and beer retailer's licensee an approved common carrier shall require:

1. The recipient to demonstrate, upon delivery, that the recipient is at least 21 years of age; and

2. The recipient to sign an electronic or paper form or other acknowledgment of receipt that allows the maintenance of the records required by this section.

The approved common carrier shall refuse delivery when the proposed recipient appears to be younger than 21 years of age and refuses to present valid identification. All licensees shipping wine or beer pursuant to this section shall affix a conspicuous notice in 16-point type or larger to the outside of each package of wine or beer shipped within or into the Commonwealth, in a conspicuous location stating: "CONTAINS ALCOHOLIC BEVERAGES; SIGNATURE OF PERSON AGED 21 YEARS OR OLDER REQUIRED FOR DELIVERY." Such notice shall also contain the wine and beer shipper's or Internet wine and beer retailer's license number of the shipping licensee. No approved common carrier shall accept for shipment any wine or beer to be shipped to anyone other than a licensee of the board unless the package bears the information required by this subsection.

I. Approved common carriers shall maintain for two years complete and accurate records of all shipments of wine or beer received from and delivered for wine and beer shipper's licensees or Internet wine and beer retailer's licensees including for each shipment:

1. Date of shipment and delivery;

2. Number of items shipped and delivered;

3. Weight of items shipped and delivered;

4. Acknowledgment signed by recipient; and

5. Names and addresses of shippers and recipients.

The records required by this subsection shall be made available for inspection and copying by any member of the board or its special agents upon request.

J. On or before the 15th day of each January, April, July, and October, each approved common carrier shall file with the Supervisor, Tax Management Section, a report of activity for the previous calendar quarter. Such report shall include:

1. Whether any shipments were delivered during the quarter; and

2. If shipments were made, the following information for each shipment:

a. Dates of each delivery; and

b. Names and address of shippers and recipients for each delivery.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 21, Issue 19, eff. June 29, 2005; amended, Virginia Register Volume 24, Issue 14, eff. May 1, 2008; Volume 30, Issue 6, eff. December 18, 2013; Volume 38, Issue 1, eff. January 1, 2022.

3VAC5-70-225. Delivery permits; application process; records and reports.

A. Any out of state person or entity qualified for a delivery permit pursuant to § 4.1-212.1 of the Code of Virginia must apply for such permit by submitting Form 805-52, Retail License Application. The applicant shall attach (i) a photocopy of its current license as an alcoholic beverage retailer that is authorized to sell wine or beer at retail for off-premises consumption, issued by the appropriate authority for the location from which deliveries will be made and (ii) evidence of the applicant's registration with the Virginia Department of Taxation for the collection of Virginia retail sales tax.

B. Delivery permittees and licensees with delivery privileges shall maintain for two years complete and accurate records of all deliveries made under the privileges of such permits, including for each delivery:

1. Number of containers delivered;

2. Volume of each container delivered;

3. Brand of each container delivered;

4. Names and addresses of recipients;

5. Signature of recipient; and

6. Price charged for the wine or beer delivered.

The records required by this subsection shall be made available for inspection and copying by any member of the board or its special agents upon request.

C. On or before the 15th day of each month, each delivery permittee and licensees with delivery privileges shall file with the Supervisor, Tax Management Section, a report of activity for the previous calendar month, if any deliveries were made during the month. Such report shall include the following information for each delivery:

1. Number of containers delivered;

2. Volume of each container delivered;

3. Brand of each container delivered;

4. Names and addresses of recipients; and

5. Price charged for the wine or beer delivered.

Unless previously paid, payment of the appropriate beer or wine tax imposed by § 4.1-234 or 4.1-236 of the Code of Virginia shall accompany each report. If no wine or beer was sold and delivered in any month, the permittee shall not be required to submit a report for that month; however, every permittee must submit a report no less frequently than once every 12 months even if no sales or deliveries have been made in the preceding 12 months.

D. All deliveries by holders of delivery permits and licensees with delivery privileges shall be performed by the owner or any agent, officer, director, shareholder, or employee of the permittee.

E. No more than four cases of wine nor more than four cases of beer may be delivered at one time to any person, except that a permittee or licensee may deliver more than four cases of wine or more than four cases of beer if he notifies the Supervisor, Tax Management Section, in writing at least one business day in advance of such delivery. Any notice given pursuant to this section shall include the number of containers to be delivered, the volume of each container to be delivered, the brand of each container to be delivered, and the name and address of the intended recipient.

F. When attempting to deliver wine or beer pursuant to a delivery permit or license privilege, an owner, agent, officer, director, shareholder, or employee of the permittee shall require:

1. The recipient to demonstrate, upon delivery, that he is at least 21 years of age; and

2. The recipient to sign an electronic or paper form or other acknowledgment of receipt that allows the maintenance of the records required by this section.

The owner, agent, officer, director, shareholder, or employee of the permittee or licensee shall refuse delivery when the proposed recipient appears to be under the age of 21 years and refuses to present valid identifications. All permittees delivering wine or beer pursuant to this section shall affix a conspicuous notice in 16-point type or larger to the outside of each package of wine or beer delivered in the Commonwealth, in a conspicuous location stating: "CONTAINS ALCOHOLIC BEVERAGES; SIGNATURE OF PERSON AGED 21 YEARS OR OLDER REQUIRED FOR DELIVERY." Such notice shall also contain the delivery permit number of the delivering permittee.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 2, eff. October 28, 2009; amended, Virginia Register Volume 38, Issue 1, eff. January 1, 2022.

3VAC5-70-230. Sale of designer or vintage spirit bottles.

Collectors of designer or vintage bottles containing distilled spirits may sell them at auction under the following conditions:

1. The seller shall notify the secretary to the board of the date, time, and place of the auction sale.

2. Any bottle sold must be unopened and the manufacturer's seals, marks, or stamps affixed to the bottles must be intact.

3. The auction must be conducted in accordance with the provisions of Chapter 6 (§ 54.1-600 et seq.) of Title 54.1 of the Code of Virginia.

4. Any purchaser at such auction must be a minimum of 21 years of age.

5. For two years from the date of sale, the auctioneer must keep records, available to the board upon request, of the name and address of each purchaser and a description of the alcoholic beverages purchased.

Statutory Authority

§§ 4.1-103 and 4.1-111 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 23, Issue 13, eff. May 19, 2007.

3VAC5-70-240. Marketing portal and fulfillment warehouse approval process.

A. Any holder of a wine and beer shipper's license wishing to use the services of a marketing portal or fulfillment warehouse, as defined in § 4.1-209.1 of the Code of Virginia, must use an approved marketing portal or fulfillment warehouse. Marketing portals or fulfillment warehouses licensed to perform such services by the state in which they are located may apply for approval to provide such services to holders of Virginia wine or beer shipper's licenses by letter to the Supervisor, Tax Management Section, Virginia Alcoholic Beverage Control Authority, requesting such approval. Each applicant shall submit as attachments copies of all licenses issued by the state in which its place of business is located that authorize the provision of the services to be provided. A marketing portal shall submit as attachments copies of documents showing that it is properly organized as an agricultural cooperative in the state where it is located. The board may refuse, suspend, or revoke approval if it shall have reasonable cause to believe that a marketing portal or fulfillment warehouse is not licensed to provide such services by its home state, that it has failed to comply with the regulations of the board, or that a cause exists with respect to the marketing portal or fulfillment warehouse that would authorize the board to refuse, suspend, or revoke a license pursuant to § 4.1-100 et seq. of Title 4.1 of the Code of Virginia. Before refusing, suspending, or revoking such approval, the board shall follow the same administrative procedures accorded an applicant or licensee under § 4.1-100 et seq. of Title 4.1 of the Code of Virginia and regulations of the board.

B. Any approved marketing portal or fulfillment warehouse shall, prior to performing services for a wine and beer shipper's licensee, enter into a written contract. The contract must designate the marketing portal or fulfillment warehouse as the agent of the shipper for the purposes of complying with the provisions of this regulation and §§ 4.1-206.3 and 4.1-209.1 of the Code of Virginia. A copy of each such contract shall be submitted by the marketing portal or fulfillment warehouse to the Supervisor, Tax Management Section, Alcoholic Beverage Control Authority, prior to the commencement of services.

C. Approved fulfillment warehouses shall maintain for two years complete and accurate records of all shipments made on behalf of Virginia wine and beer shippers, including for each shipment:

1. Number of containers shipped;

2. Volume of each container shipped;

3. Brand of each container shipped; and

4. Names and addresses of recipients.

The records required by this subsection shall be made available for inspection and copying by any member of the board or its special agents upon request.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 29, Issue 1, eff. November 4, 2012; amended, Virginia Register Volume 38, Issue 1, eff. January 1, 2022.

3VAC5-70-250. Waiver of penalty for certain first-time violations..

A. In accordance with subdivision E 4 of § 4.1-227 of the Code of Virginia, whenever the board finds that a charge against a licensee for a violation listed in this subsection is substantiated, the licensee has had no prior violations within five years immediately preceding the date of the subject violation, and the subject violation was not willful and knowing, the board shall enter an order substantiating the violation without imposing a penalty. The provisions of this subsection shall apply to the following violations:

1. Keeping unauthorized alcoholic beverages on the premises, upon which appropriate taxes have been paid;

2. Allowing an intoxicated person to loiter on the premises;

3. After hours sales or consumption of alcoholic beverages;

4. No designated manager on premises;

5. Invalid check to wholesaler or board;

6. Inadequate illumination;

7. Not timely submitting a report required by statute or regulation;

8. Designated manager not posted;

9. Person less than 18 years of age serving alcoholic beverages; less than 21 years of age acting as bartender;

10. Sale of alcoholic beverages in unauthorized place or manner;

11. Consumption of alcoholic beverages in unauthorized area;

12. Removal of alcoholic beverages from authorized area;

13. Failure to obliterate mixed beverage stamps;

14. Employee on duty consuming alcoholic beverages;

15. Conducting illegal happy hour;

16. Illegally advertising happy hour;

17. Unauthorized advertising;

18. Failure to remit state beer/wine tax (if deficiency has been corrected);

19. Wholesaler sale of wine/beer in unauthorized manner; and

20. Wholesaler sale of wine/beer to unauthorized person.

B. Whenever any licensee who has not had any substantiated violations of regulation or statute within the previous five years is charged with a violation, the board, if the facts found by the board would justify a finding that the charge is substantiated but is not a willful and knowing violation, with the consent of the licensee, may defer further proceedings and place the licensee on probation upon terms and conditions.

As a term or condition, the board shall require the licensee to participate in or provide employees such board-approved seller/server or manager training as, in the opinion of the board, may be best suited to the needs of the licensee based upon consideration of the nature of the violation.

As a condition of probation, the board shall require the licensee to (i) successfully complete the required training program and (ii) comply with all alcoholic beverage laws and regulations during the period of probation.

Upon violation of a term or condition, the board may enter an adjudication that the charge is substantiated and proceed as otherwise provided. Upon fulfillment of the terms and conditions, the board shall dismiss the proceedings against the licensee. Dismissal under this section shall be without adjudication of the charge and is a substantiated violation only for the purposes of applying this section in subsequent proceedings.

Statutory Authority

§§ 4.1-103, 4.1-111, and 4.1-227 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 28, Issue 10, eff. March 3, 2012.

FORMS (3VAC5-70).

Order and Permit for Transportation of Alcohol (rev. 11/2015)

Order and Permit for Transportation of Alcoholic Beverages (rev. 11/2015)

Instructions for Completion of the Mixed Beverage Annual Report and Inventory Report (rev. 6/2018)

Application for Grain Alcohol Permit, #805-75 (filed 8/2021)

Special Event License Application Addendum-Notice to Special Event Licenses Applicants, Form SE-1 (rev. 3/2019)

Statement of Income and Expenses for Special Event Licenses (with instructions), Form SE-2 (rev. 3/2019)

Alcohol Seller/Server Training Data Form and Evaluation Form (eff. 7/2009)

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

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