A. Local restriction upon activities of distilleries licensed pursuant to subdivision 2 of § 4.1-206.1 to market and sell their products shall be reasonable and shall take into account the economic impact on such licensed distillery of such restriction, the agricultural nature of such activities and events, and whether such activities and events are usual and customary for such licensed distilleries. Usual and customary activities and events at such licensed distilleries shall be permitted unless there is a substantial impact on the health, safety, or welfare of the public.
B. No locality shall regulate any of the following activities of a distillery licensed under subdivision 2 of § 4.1-206.1:
1. The production and harvesting of agricultural products and the manufacturing of alcoholic beverages other than wine or beer;
2. The on-premises sale, tasting, or consumption of alcoholic beverages other than wine or beer during regular business hours in accordance with a contract between a distillery and the Alcoholic Beverage Control Board pursuant to the provisions of subsection D of § 4.1-119;
3. The sale and shipment of alcoholic beverages other than wine or beer to licensed wholesalers and out-of-state purchasers in accordance with Title 4.1, regulations of the Alcoholic Beverage Control Board, and federal law;
4. The storage and warehousing of alcoholic beverages other than wine or beer in accordance with Title 4.1, regulations of the Alcoholic Beverage Control Board, and federal law; or
5. The sale of items related to alcoholic beverages other than wine or beer that are incidental to the sale of such alcoholic beverages.
C. Any locality may exempt any distillery licensed in accordance with subdivision 2 of § 4.1-206.1 on land zoned agricultural from any local regulation of minimum parking, road access, or road upgrade requirements.