                                 CODE OF VIRGINIA

CONDITIONS UNDER WHICH BOARD SHALL REFUSE TO GRANT LICENSES (§ 4.1-223)

The Board shall refuse to grant any:

1. Wholesale beer or wine license to any person, unless such person has
established or will establish a place or places of business within the
Commonwealth at which will be received and from which will be distributed all
alcoholic beverages sold by such person in the Commonwealth. However, in special
circumstances, the Board, subject to any regulations it may adopt, may permit
alcoholic beverages to be received into or distributed from places other than
established places of business.

2. Wholesale wine license to any entity that is owned, in whole or in part, by
any manufacturer of alcoholic beverages, any subsidiary or affiliate of such
manufacturer, or any person under common control with such manufacturer. This
subdivision, however, shall not apply to (i) any applicant for a wholesale beer
or wine license filed pursuant to subdivision B 3 b of &#xA7; 4.1-216 or (ii)
the nonprofit, nonstock corporation established pursuant to subdivision B 2 of
&#xA7; 3.2-102 in exercising any privileges granted under subdivision 4 of
&#xA7; 4.1-206.2.

3. Wholesale beer license to any (i) entity that is owned, in whole or in part,
by any manufacturer of alcoholic beverages; (ii) subsidiary or affiliate of a
manufacturer of alcoholic beverages; (iii) officer, director, or principal
stockholder of a manufacturer of alcoholic beverages; (iv) spouse of an officer,
director, or principal stockholder of a manufacturer of alcoholic beverages; or
(v) person under common control with a manufacturer of alcoholic beverages. This
subdivision, however, shall not apply to (a) any applicant for a wholesale beer
or wine license filed pursuant to subdivision B 3 b of &#xA7; 4.1-216 or (b) the
nonprofit, nonstock corporation established pursuant to subdivision B 3 of
&#xA7; 3.2-102 in exercising any privileges granted under subdivision 2 of
&#xA7; 4.1-206.2.
			As used in this subdivision, the term &#8220;manufacturer&#8221; includes any
person (i) who brews, vinifies, or distills alcoholic beverages for sale or (ii)
engaging in business as a contract brewer, winery, or distillery that owns
alcoholic beverage product brand rights, but arranges the manufacture of such
products by another person.

4. Mixed beverage license if the Board determines that in the licensed
establishment there (i) is entertainment of a lewd, obscene or lustful nature
including what is commonly called stripteasing, topless entertaining, and the
like, or which has employees who are not clad both above and below the waist, or
who uncommonly expose the body or (ii) are employees who solicit the sale of
alcoholic beverages.

5. Wholesale wine license until the applicant has filed with the Board a bond
payable to the Commonwealth, in a sum not to exceed $10,000, upon a form
approved by the Board, signed by the applicant or licensee and a surety company
authorized to do business in the Commonwealth as surety, and conditioned upon
such person&#8217;s (i) securing wine only in a manner provided by law, (ii)
remitting to the Board the proper tax thereon, (iii) keeping such records as may
be required by law or Board regulations, and (iv) abiding by such other laws or
Board regulations relative to the handling of wine by wholesale wine licensees.
The Board may waive the requirement of both the surety and the bond in cases
where the wholesaler has previously demonstrated his financial responsibility.

6. Mixed beverage license to any member, agent, or employee of the Board or to
any corporation or other business entity in which such member, agent or employee
is a stockholder or has any other economic interest.
			Whenever any other elective or appointive official of the Commonwealth or any
political subdivision thereof applies for such a license or continuance thereof,
he shall state on the application the official position he holds, and whenever a
corporation or other business entity in which any such official is a stockholder
or has any other economic interests applies for such a license, it shall state
on the application the full economic interest of each such official in such
corporation or other business entity.

7. License authorized by this chapter until the license tax required by &#xA7;
4.1-231.1 is paid to the Board.

HISTORY: Code 1950, § 4-31; 1954, c. 301; 1956, c. 523; 1968, c. 7, §§
4-98.9, 4-98.17; 1972, cc. 178, 525; 1974, cc. 267, 548; 1975, c. 413; 1976, cc.
67, 698; 1978, c. 446; 1980, c. 299; 1982, c. 66; 1984, c. 703; 1986, cc. 94,
615; 1989, c. 311; 1990, c. 727; 1992, c. 161; 1993, c. 866; 2000, c. 823; 2007,
cc. 870, 932; 2012, cc. 803, 835; 2020, cc. 1113, 1114; 2023, c. 597.