4.1-119 - Operation of government stores.
§ 4.1-119. Operation of government stores.
A. Subject to the requirements of §§ 4.1-121 and 4.1-122, the Board mayestablish, maintain and operate government stores for the sale of alcoholicbeverages, other than beer and wine not produced by farm wineries, vermouth,mixers, and products used in connection with distilled spirits, including anygarnish or garnishment applied to the rim of a glass of distilled spirits, asmay be approved by the Board from time to time, in such counties, cities, andtowns considered advisable by the Board. The Board may discontinue any suchstore.
B. With respect to the sale of wine produced by farm wineries, the Board maygive preference to farm wineries that produce 2,500 cases or less of wine peryear.
C. The Board shall fix the wholesale and retail prices at which the variousclasses, varieties and brands of alcoholic beverages and other Board-approvedproducts that are sold in government stores. Differences in the cost ofoperating stores, and market competition and conditions may be reflected inthe sale price of alcoholic beverages sold at government stores. The Boardmay sell alcoholic beverages to federal instrumentalities (i) authorized andoperating under the laws of the United States and regulations of the UnitedStates Department of Defense and (ii) located within the boundaries offederal enclaves or reservations over which the United States has acquiredjurisdiction, at prices which may be greater or less than the wholesale pricecharged other authorized purchasers.
D. Alcoholic beverages at government stores shall be sold by employees of theBoard, who shall carry out the provisions of this title and Board regulationsgoverning the operation of government stores and the sale of alcoholicbeverages, except that the Board may appoint the holder of a distiller'slicense or its officers and employees as agents of the Board for the sale ofspirits, manufactured by or for, or blended by such licensee on the licensedpremises, at government stores established by the Board on the distiller'slicensed premises, provided:
1. At least 51 percent of the agricultural products used by such licensee tomanufacture the spirits are grown on the licensee's farm or land in Virginialeased by the licensee and no more than 25 percent of the agriculturalproducts are grown or produced outside the Commonwealth. However, uponpetition by the Department of Agriculture and Consumer Services, the Boardmay permit the use of a lesser percentage of products grown on the licensee'sfarm if unusually severe weather or disease conditions cause a significantreduction in the availability of agricultural products grown on the farm tomanufacture the spirits during a given license year;
2. Such licensee is a duly organized nonprofit association holding title toreal property, together with improvements thereon that are significant inAmerican history, under a charter from the Commonwealth to preserve suchproperty, and which association accepts no federal, state, or local funds; or
3. Such licensee operates a museum whose licensed premises is located on thegrounds of a local historic building or site.
Such agents shall sell the spirits in accordance with the provisions of thistitle, Board regulations, and the terms of the agency agreement between theBoard and the licensed distiller.
For the purposes of this subsection, "blended" means the receipt by alicensed distiller of deliveries and shipments of alcoholic beverages, otherthan wine and beer, in accordance with subdivision 6 § 4.1-201 to be (i)additionally aged by the receiving distillery in order to increase thequality and flavor of such alcoholic beverages and (ii) bottled by thereceiving distillery.
E. No Class 1 neutral grain spirit or alcohol, as defined by federalregulations, that is without distinctive character, aroma, taste or colorshall be sold in government stores at a proof greater than 101 except uponpermits issued by the Board for industrial, commercial, culinary, or medicaluse.
F. All alcoholic beverages sold in government stores shall be in closedcontainers, sealed and affixed with labels prescribed by the Board.
G. No alcoholic beverages shall be consumed in a government store by anyperson unless it is part of an organized tasting event conducted by (i) anemployee of a manufacturer of distilled spirits or farm winery or (ii) anauthorized representative of a manufacturer of distilled spirits or farmwinery with a permit issued by the Board pursuant to subdivision A 15 of §4.1-212, and the samples of alcoholic beverages provided to any consumer donot exceed the limits for spirits or wine set forth in subdivision A 5 of §4.1-201.1. No sample may be consumed by any individual to whom alcoholicbeverages may not lawfully be sold pursuant to § 4.1-304. The Board shallestablish guidelines governing tasting events conducted pursuant to thissubsection.
H. With respect to purchases by licensees at government stores, the Boardshall (i) accept in payment for any purchase or series of purchases cash,electronic fund transfer, credit or debit card, or check payable to theBoard, in the exact amount of any such purchase or series of purchases and(ii) provide notice to licensees on Board policies relating to the assignmentof government stores from which licensees may purchase products and anyprocedure for the licensee to elect to make purchases from an alternativegovernment store.
I. With respect to purchases by consumers at government stores, the Boardshall accept cash in payment for any purchase or series of purchases. TheBoard may adopt regulations which provide for accepting a credit card ordebit card as payment. Such regulations may provide for the collection, whereappropriate, of related fees, penalties and service charges for the use of acredit card or debit card by any consumer.
(Code 1950, § 4-15; 1958, c. 269; 1962, c. 453; 1970, c. 351; 1983, c. 267;1984, c. 200; 1992, c. 782; 1993, cc. 252, 866; 1996, c. 558; 1999, c. 98;2005, c. 651; 2006, c. 106; 2007, cc. 546, 726, 820; 2008, c. 609; 2009, c.620; 2010, cc. 115, 170, 517.)