                                 CODE OF VIRGINIA

REGULATIONS OF BOARD (§ 4.1-111)

A. The Board may promulgate reasonable regulations, not inconsistent with this
subtitle or the general laws of the Commonwealth, which it deems necessary to
carry out the provisions of this subtitle and to prevent the illegal
manufacture, bottling, sale, distribution, and transportation of alcoholic
beverages. The Board may amend or repeal such regulations. Such regulations
shall be promulgated, amended or repealed in accordance with the Administrative
Process Act (&#xA7; 2.2-4000 et seq.) and shall have the effect of law.

B. The Board shall promulgate regulations that:

   1. Prescribe what hours and on what days alcoholic beverages shall not be sold
   by licensees or consumed on any licensed premises, including a provision that
   mixed beverages may be sold only at such times as wine and beer may be sold.

   2. Require mixed beverage caterer licensees to notify the Board in advance of
   any event to be served by such licensee.

   3. Maintain the reasonable separation of retailer interests from those of the
   manufacturers, bottlers, brokers, importers, and wholesalers in accordance
   with &#xA7; 4.1-216 and in consideration of the established trade customs,
   quantity, and value of the articles or services involved; prevent undue
   competitive domination of any person by any other person engaged in the
   manufacture, distribution, and sale at retail or wholesale of alcoholic
   beverages in the Commonwealth; and promote reasonable accommodation of
   arm&#8217;s length business transactions.

   4. Establish requirements for the form, content, and retention of all records
   and accounts, including the (i) reporting and collection of taxes required by
   &#xA7; 4.1-236 and (ii) the sale of alcoholic beverages in kegs, by all
   licensees.

   5. Require retail licensees to file an appeal from any hearing decision
   rendered by a hearing officer within 30 days of the date the notice of the
   decision is sent. The notice shall be sent to the licensee at the address on
   record with the Board by certified mail, return receipt requested, and by
   regular mail.

   6. Prescribe the terms and conditions under which persons who collect or trade
   designer or vintage spirit bottles may sell such bottles at auction, provided
   that (i) the auction is conducted in accordance with the provisions of Chapter
   6 (&#xA7; 54.1-600 et seq.) of Title 54.1 and (ii) the bottles are unopened
   and the manufacturers&#8217; seals, marks, or stamps affixed to the bottles
   are intact.

   7. Prescribe the terms and conditions under which credit or debit cards may be
   accepted from licensees for purchases at government stores, including
   provision for the collection, where appropriate, of related fees, penalties,
   and service charges.

   8. Require that banquet licensees in charge of public events as defined by
   Board regulations report to the Board the income and expenses associated with
   the public event on a form prescribed by the Board when the banquet licensee
   engages another person to organize, conduct, or operate the event on behalf of
   the banquet licensee. Such regulations shall be applicable only to public
   events where alcoholic beverages are being sold.

   9. Provide alternative methods for licensees to maintain and store business
   records that are subject to Board inspection, including methods for
   Board-approved electronic and off-site storage.

   10. Require off-premises retail licensees to place any premixed alcoholic
   energy drinks containing one-half of one percent or more of alcohol by volume
   in the same location where wine and beer are available for sale within the
   licensed premises.

   11. Prescribe the terms and conditions under which mixed beverage licensees
   may infuse, store, and sell flavored distilled spirits, including a provision
   that limits infusion containers to a maximum of 20 liters.

   12. Prescribe the schedule of proration for refunded license taxes to
   licensees who qualify pursuant to subsection C of &#xA7; 4.1-232.

   13. Establish reasonable time, place, and manner restrictions on outdoor
   advertising of alcoholic beverages, not inconsistent with the provisions of
   this subtitle, so that such advertising does not encourage or otherwise
   promote the consumption of alcoholic beverages by persons to whom alcoholic
   beverages may not be lawfully sold. Such regulations shall:
   				a. Restrict outdoor advertising of alcoholic beverages in publicly visible
   locations consistent with (i) the general prohibition against tied interests
   between retail licensees and manufacturers or wholesale licensees as provided
   in &#xA7;&#xA7; 4.1-215 and 4.1-216; (ii) the prohibition against manufacturer
   control of wholesale licensees as set forth in &#xA7; 4.1-223 and Board
   regulations adopted pursuant thereto; and (iii) the general prohibition
   against cooperative advertising between manufacturers, wholesalers, or
   importers and retail licensees as set forth in Board regulation; and
   				b. Permit (i) any outdoor signage or advertising not otherwise prohibited
   by this subtitle and (ii) the display of outdoor alcoholic beverage
   advertising on lawfully erected billboard signs regulated under Chapter 12
   (&#xA7; 33.2-1200 et seq.) of Title 33.2 where such signs are located on
   commercial real estate as defined in &#xA7; 55.1-1100, but only in accordance
   with this subtitle.

   14. Prescribe the terms and conditions under which a licensed brewery may
   manufacture beer pursuant to an agreement with a brand owner not under common
   control with the manufacturing brewery and sell and deliver the beer so
   manufactured to the brand owner. The regulations shall require that (i) the
   brand owner be an entity appropriately licensed as a brewery or beer
   wholesaler, (ii) a written agreement be entered into by the parties, and (iii)
   records as deemed appropriate by the Board are maintained by the parties.

   15. Prescribe the terms for any &#8220;happy hour&#8221; conducted by
   on-premises licensees. Such regulations shall permit on-premises licensees to
   advertise any alcoholic beverage products featured during a happy hour and any
   pricing related to such happy hour. Such regulations shall not prohibit
   on-premises licensees from using creative marketing techniques in such
   advertisements, provided that such techniques do not tend to induce
   overconsumption or consumption by minors.

   16. Permit retail on-premises licensees to 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 (i) such gifts only are made to individuals to whom such
   products may lawfully be sold and (ii) only one such gift is given during any
   24-hour period and subject to any Board limitations on the frequency of such
   gifts.

   17. Permit the sale of beer and cider for off-premises consumption in
   resealable growlers made of glass, ceramic, metal, or other materials approved
   by the Board, or other resealable containers approved by the Board, with a
   maximum capacity of 128 fluid ounces or, for metric-sized containers, four
   liters.

   18. Permit the sale of wine for off-premises consumption in resealable
   growlers made of glass, ceramic, metal, or other materials approved by the
   Board, or other resealable containers approved by the Board, with a maximum
   capacity of 64 fluid ounces or, for metric-sized containers, two liters. Wine
   growlers may be used only by persons licensed to sell wine for both
   on-premises and off-premises consumption or by gourmet shops granted a retail
   off-premises wine and beer license. Growlers sold by gourmet shops shall be
   labeled with (i) the manufacturer&#8217;s name or trade name, (ii) the place
   of production, (iii) the net contents in fluid ounces, and (iv) the name and
   address of the retailer.

   19. Permit the sale of wine, cider, and beer by retailers licensed to sell
   beer and wine for both on-premises and off-premises consumption, or by gourmet
   shops granted a retail off-premises wine and beer license for off-premises
   consumption in sealed containers made of metal or other materials approved by
   the Board with a maximum capacity of 32 fluid ounces or, for metric-sized
   containers, one liter, provided that the alcoholic beverage is placed in the
   container following an order from the consumer.

   20. Permit mixed beverage licensees to premix containers of sangria and other
   mixed alcoholic beverages and to serve such alcoholic beverages in pitchers,
   subject to size and quantity limitations established by the Board.

   21. Establish and make available to all licensees and permittees for which
   on-premises consumption of alcoholic beverages is allowed and employees of
   such licensees and permittees who serve as a bartender or otherwise sell,
   serve, or dispense alcoholic beverages for on-premises consumption a bar
   bystander training module, which shall include (i) information that enables
   licensees, permittees, and their employees to recognize situations that may
   lead to sexual assault and (ii) intervention strategies to prevent such
   situations from culminating in sexual assault.

   22. Require mixed beverage licensees, except for mixed beverage casino
   licensees, to have food, cooked or prepared on the licensed premises,
   available for on-premises consumption until at least 30 minutes prior to an
   establishment&#8217;s closing. Such food shall be available in all areas of
   the licensed premises in which spirits are sold or served.

   23. Prescribe the terms and conditions under which the Board may suspend the
   privilege of a mixed beverage licensee to purchase spirits from the Board upon
   such licensee&#8217;s failure to submit any records or other documents
   necessary to verify the licensee&#8217;s compliance with applicable minimum
   food sale requirements within 30 days of the date such records or documents
   are due.

   24. Prescribe the terms and conditions under which manufacturers, brokers,
   importers, and wholesalers may advertise and promote alcoholic beverages via
   the Internet, social media, direct-to-consumer electronic communication, or
   other electronic means in a manner not inconsistent with the provisions of
   this subtitle.

C. The Board may promulgate regulations that:

   1. Provide for the waiver of the license tax for an applicant for a banquet
   license, such waiver to be based on (i) the amount of alcoholic beverages to
   be provided by the applicant, (ii) the not-for-profit status of the applicant,
   and (iii) the condition that no profits are to be generated from the event.
   For the purposes of clause (ii), the applicant shall submit with the
   application, an affidavit certifying its not-for-profit status. The granting
   of such waiver shall be limited to two events per year for each applicant.

   2. Establish limitations on the quantity and value of any gifts of alcoholic
   beverages made in the course of any business entertainment pursuant to
   subdivision A 22 of &#xA7; 4.1-325 or subsection C of &#xA7; 4.1-325.2.

   3. Provide incentives to licensees with a proven history of compliance with
   state and federal laws and regulations to encourage licensees to conduct their
   business and related activities in a manner that is beneficial to the
   Commonwealth.

D. Board regulations shall be uniform in their application, except those
relating to hours of sale for licensees.

E. Courts shall take judicial notice of Board regulations.

F. The Board&#8217;s power to regulate shall be broadly construed.

HISTORY: Code 1950, §§ 4-11, 4-36; 1968, c. 7, §§ 4-98.5, 4-98.14; 1974, c.
460; 1982, c. 145; 1991, c. 690; 1992, c. 220; 1993, cc. 433, 866; 1997, c. 40;
1998, c. 301; 1999, cc. 98, 641; 2003, c. 856; 2008, c. 513; 2009, c. 122; 2010,
c. 481; 2011, c. 728; 2012, cc. 376, 760, 818; 2015, cc. 404, 412; 2017, cc.
160, 743, 744; 2019, cc. 7, 29, 706; 2020, cc. 1113, 1114; 2022, cc. 589, 590;
2024, cc. 38, 139.