CHAPTER 7

An Act to amend and reenact §§ 4-28, 4-61, as amended, and § 4-71 of the
Code of Virginia, to allow persons holding licenses issued pursuant
toa new chapter numbered 1.1 in Title 4 of the Code of Virginia to sell
alcoholic beverages having an alcohol content of more than fourteen
per centum by volume; and to amend the Code of Virginia by adding
in Title 4 thereof a new chapter numbered 1.1, containing sections
numbered 4-98.1 through 4-98.17, to authorize local elections in the
cities, certain towns and counties on the question of dispensing cer-
tain mixed beverages, to provide for the licensing of persons who may
dispense such beverages, and to provide for the regulation of the sale
thereof.

(H 17]

Approved February 7, 1968
Be it enacted by the General Assembly of Virginia:

1. That §§ 4-28, 4-61, as amended, and § 4-71 of the Code of Virginia
be amended and reenacted, and that the Code of Virginia be amended by
adding in Title 4 thereof a new chapter numbered 1.1, containing sections
numbered 4-98.1 through 4-98.17, as follows:

§ 4-28. No alcoholic beverage having an alcoholic content of more
than fourteen per centum by volume shall be sold at retail in the State
of Virginia, except at government stores or except by licensees under the
provisions of Chapter 1.1 of this Title. Nothing in this section shall be
construed to prohibit sales by druggists as authorized by § 4-49, nor
such sales as are authorized by § 4

§ 4-61. No alcoholic beverages shall be kept or allowed to be kept
upon any premises or upon the person of any proprietor or person em-
ployed upon the premises of a restaurant, * or other place, where food
or refreshments of any kind are furnished for compensation, except such
alcoholic beverages as such person owning or operating such place of
business is authorized * under this chapter, or under Chapter 1.1 of this
Title, to purchase and to sell at such place of business; provided, however,
that the restrictions in this regulation shall not apply to any residence as
defined in subsection (21) of § 4-2, nor to private dining rooms approved
by the Virginia Alcoholic Beverage Control Board in restaurants licensed
by the said Board otherwise than under Chapter 1.1 of this Title, while
such rooms are in use for private meetings or parties limited in attendance
to members and guests of a particular group, association or organization.

Any person convicted of a violation of the provisions of this section
shall be guilty of a misdemeanor and punished as provided in § 4-92.

§ 4-71. If any person shall, in this State, buy alcoholic beverages
from any person other than the Board, a government store or some per-
son authorized under the provisions of this chapter or Chapter 1.1 of this
Title to sell the same he shall be guilty of a misdemeanor.

CHAPTER 1.1
Mixed Beverages

§ 4-98.1. The terms defined in § 4-2 shall have the same meanings
when used in this chapter, and the term “mixed beverage” or “mized alco-
holic beverage” shall mean a drink composed in whole or in part of alcoholic
beverages having an alcoholic content of more than 14 per centum by vol-
ume and served to an individual in a quantity less than the quantity con-
taened in a closed package for consumption on premises licensed under this
chapter.

§ 4-98.2. Inany city, town or county where this chapter shall become
effective as hereafter provided, the Board may grant a Mixed Beverage
Restaurant License, which license may be granted only to persons operating
a restaurant with a seating capacity at tables for not less than 50 persons
and whose gross receipts from the sale of full meals cooked, prepared and
served on the premises and non-alcoholic beverages served on the premises
shall, after issuance of such license, exceed its gross receipts from the sale
of alcoholic beverages, mixed beverages and beverages as defined in § 4-99.
Such license shall authorize the licensee to sell and serve mixed beverages
for consumption in dining rooms on the premises of such restaurant
specified in such license. If the restaurant is located on premises of and
operated by a hotel or motel with not less than 40 permanent bedrooms
where food and beverage service is customarily provided by the restaurant
wn bedrooms and other private rooms of such hotel or motel, such license
shall also authorize the licensee to sell and serve mixed beverages for
consumption in such bedrooms and other private rooms. If the restaurant
ts located on the premises of and operated by a private, nonprofit club
exclusively for its members and their guests, such license shall also author-
ize the licensee to sell and serve mixed beverages for consumption on the
premises of such club specified in such license.

§ 4-98.8. If this chapter shall become effective in any city, town or
county in or through which is operated a common carrier of passengers
by train, ship or airplane, the Board may grant to persons operating such
common carrier of passengers a Mixed Beverage Carrier License. Such
license shall authorize the licensee to sell and serve mixed beverages any-
where in the Commonwealth to passengers while an transit aboard any
train, ship or airplane operated by such carrier. Such mixed beverages
may be sold and served on trains and ships only in the same places specified
for such carriers in Chapter 1.

§ 4-98.4. The right of any person licensed under this chapter to sell
or serve mixed beverages shall extend to such licensee and to all persons
regularly employed by such licensee for the purpose of selling and serving
such mized beverages on the premises designated in such license and
such licensee shall be liable for a violation of a provision of Title 4 or a
regulation of the Board committed on the premises by such employees.

§ 4-98.5. Mixed beverages may be sold in a city, town or county
only at such times as beer, wine or beverages as defined in § 4-99 may be
sold in such city, town or county.

§ 4-98.6. All licensees under this chapter shall keep such records
concerning the purchase of alcoholic beverages, the sale of mixed beverages
and, in the case of persons holding a Mixed Beverage Restaurant License,
concerning the sale of full meals and non-alcoholic beverages, as may be
prescribed by the Board to enable it to enforce the provisions of this
chapter. All such records shall be open for inspection by the Board or its
authorized representatives at all times.

§ 4-98.7. The Board shall annually review the operations of each
establishment holding a Mixed Beverage Restaurant License to determine
whether during the preceding license year the gross receipts from the sale
of full meals and non-alcoholic beverages at such establishment were less
than the gross receipts from the sale thereof of alcoholic beverages, mixed
beverages and beverages as defined in § 4-99 and if so the license issued to
the person operating such establishment shall be revoked and no new
license may be granted to such person with respect to such establishment
or to any other person at such establishment for at least one year from the
date of such revocation. For the purposes of this section and § 4-98.2
“non-alcoholic beverage” shall not be deemed to include any beverage, ice,
water or other mixer served with an alcoholic beverage.

§ 4-98.8. Where, in Chapter 1 of this Title, reference is made to “this
chapter,” this shall be deemed to include also this Chapter 1.1 so that the
provisions of such Chapter 1 relating to alcoholic beverages including wine
and beer, shall be applicable to mixed beverages except where the provisions
of such Chapter 1 are expressly made inapplicable to or are plainly incon-
sistent with the provisions of this Chapter 1.1.

§ 4-98.9. The Board may refuse to grant, revoke or suspend licenses
applied for or granted pursuant to this chapter under the conditions spect-
fied in §§ 4-81, 4-87, 4-105 and 4-114 of this Title and for violations of this
chapter and regulations of the Board, and shall refuse to grant, and will
revoke or suspend licenses applied for or granted, should the Board, in tts
sole discretion determine that in the licensed establishment there is enter-
tatnment of a lewd, obscene or lustful nature including specifically such as
7s commonly called stripteasing, topless entertainers, and the like, or which
has employees who are not clad both above and below the waist, or uncom-
monly expose the body, or which has employees who solicit the sale of
alcoholic beverages.

§ 4-98.10. No licensee under this chapter, nor any agent or employee
of such licensee:
(a) Shall sell or serve any alcoholic beverage other than as author-
tzed by law, or

(6b) Shall sell any authorized alcoholic beverage to any person or at
any place except as authorized by law, or

(c) Shall allow at the place described in his license the consumption
of alcoholic beverages in violation of this Title 4, or

) Shall keep at the place described in his license any alcoholic

beverage other than that which he is authorized to sell under licenses
issued to him by the Board, or

(e) Shall misrepresent the brand of any alcoholic beverage sold or
offered for sale, keep any alcoholic beverage otherwise than in the bottle
or container in which it was purchased by him, refill or partly refill any
bottle or container of alcoholic beverage or dilute or otherwise tamper
with the contents of any bottle or container of alcoholic beverage, or

(f) Shall sell or serve any brand of alcoholic beverage which is not
the same as that ordered by the purchaser thereof without first advising
such purchaser of the difference, or

(9g) Shall remove or obliterate any label, mark or stamp affixed to
any bottle or container of alcoholic beverage offered for sale or deliver
or sell the contents of any bottles or containers the label, mark or stamp
on which has been removed or obliterated, or

(h) Shall allow a person less than twenty-one years of age to
loiter in the licensed establishment, or

(i) Shall employ a person less than twenty-one years of age in or about
that portion of the licensed establishment used for the sale and consumption
of mixed beverages, or

(Gj) Shall serve any mixed beverage, other alcoholic beverage or
beverage as defined in § 4-99 for consumption at a bar in a dining room or
designated room of a restaurant or hotel, or to a person who is not seated
at a table in such a room, or

(k) Shall allow any immoral, lewd, obscene, indecent or profane con-
duct, language, literature, pictures or materials on the licensed premises, or

(l) Shall allow any striptease act, exotic dancing act or the like on
the licensed premises, or

(m) Shall allow persons connected with the licensed business to
appear nude or partially nude or to wear garb stressing near nudity or
nudity, or

(n) Shall consume or allow the consumption by an employee of a
mixed beverage, other alcoholic beverage or beverage as defined in § 4-99
while on duty, or

(o) Shall deliver to a consumer an original bottle of an alcoholic
beverage purchased under such license whether the closure be broken or un-
broken, or

(p) Shall be intoxicated while on duty or employ an intoxicated
person on the licensed premises, or

(q) Shall conceal any sale or consumption of mixed beverages, alco-
holic beverages or beverages as defined in § 4-99, or

(r) Shall fail or refuse to make samples of alcoholic beverages,
mixed beverages or beverages as defined in § 4-99 available to the Board
upon request or obstruct agents of the Board in the discharge of their
duties, or

(s) Shall store alcoholic beverages purchased under the license in
any unauthorized place or remove any such alcoholic beverages from the
premises, or

(t) Shall allow any person to receive a percentage of the income of
the licensed business or have any beneficial interest in such business, or

(u) Shall knowingly employ in the licensed business any person
who has the general reputation as a prostitute, homosexual, panderer,
gambler, habitual law violator, person of ill repute, user of or peddler of
narcotics or person who drinks to excess or any ‘‘B-girl,” or

(v) Shall keep on the licensed premises a slot machine or any pro-
hibited gambling or gaming device, machine or apparatus, or

(w) Shall advertise the sale of alcoholic beverages on or off the li-
censed premises other than as permitted by the Board.

If any person shall be found guilty of violating any of the provisions
of this section he shall be punished by a fine of not less than $50 nor more
than $500 or by confinement in jail for not less than 30 days nor more
than 12 months, or both.

§ 4-98.11. All alcoholic beverages sold as mixed beverages in estab-
lishments licensed under this chapter shall be purchased from the Board.
Such purchases may be made at government stores or at warehouses oper-
ated by the Board, at prices established by the Board, which prices, in
either case, may be greater than the prices to other authorized purchasers,
but shall be uniform for all purchasers licensed under this chapter.

§ 4-98.12. The provisions of this chapter shall not become effective
an any city or county until (a) a petition, signed by a number of qualified
voters of such city or county equal to fifteen per centum of the number
of votes cast by qualified voters of such city or county and counted for
presidential electors in the last preceding presidential election in such
city or county and in no event signed by less than one hundred qualified
voters of such city or county, is filed with the corporation, hustings or
circuit court of such city or county, or with the judge thereof in vacation,
asking that a referendum be held on the question, “May mized alcoholic
beverages be sold in (the name of such city or county] by restaurants lt-
censed under Chapter 1.1 of Title 4 of the Code of Virginia?’ ; (b) following
the filing of such petition, the court or judge thereof in vacation shall, by
order entered of record, require the regular election officials of such city or
county to open the polls and take the sense of the qualified voters on such
question; and (c) at the election held on the day designated by order of such
court, which day shall not be later than the next general election following
by at least 60 days the entry of such order, a majority of the voters voting
in such election shall vote, “Yes.”

The clerk of the corporation, hustings or circuit court of such city or
county shall publish notice of such election in a newspaper of general
circulation in such city or county once a week for three consecutive weeks
prior to such election.

The regular election officers of such city or county shall open the polls
at the various voting places in such city or county on the date specified
an such order and conduct such election in the manner provided by law.
The election shall be by ballot which shall be prepared by the electoral
board of the city or county and on which shall be printed the following:

May mixed alcoholic beverages De SOL AN .........ccccccccccscssssvcceccccssssssscscecees
by ie licensed under Chapter 1.1 of Title 4 of the Code of Virginia?

[] Yes

[] No

In the blank shall be inserted the name of the city or county in which
such election is held. Any voter desiring to vote “Yes” shall mark a check
(Vv) mark or across (X or +) mark ora line (—) in the square provided
for such purpose immediately preceding the word “Yes’’, leaving the square
emmediately preceding the word “No” unmarked. Any voter desiring to
vote “‘No” shall mark a check (V) mark or a cross (X or +) mark ora
line (—) in the square provided for such purpose immediately preceding
the word “‘No”, leaving the square immediately preceding the word “Yes”
unmarked.

The ballots shall be counted, returns made and canvassed as in other
elections, and the results certified by the commissioners of election to the
court ordering such election, or the judge thereof in vacation. Thereupon,
such court, or the judge thereof in vacation, shall enter an order proclaim-
ing the results of such election and a duly certified copy of such order
shall be transmitted to the Board and to the governing body of such city
or county. This chapter shall become effective in such city or county 30
days following the entry of such order.

The provisions of this section shall be applicable to towns having a
population in excess of two thousand five hundred inhabitants according
to the last preceding United States census to the same extent and subject
to the same conditions and limitations as are otherwise applicable to cittes
and counties under this section.

§ 4-98.13. After an election is held in a city, town or county under
§ 4-98.12, no further such election may be held in such city, town or county
for a pertod of forty-seven months. The provisions of §§ 4-45.2, 4-45.38 and
4-45.7 having to do with determining the validity of petitions for elections,
determining population, and determining contests of local option elections,
respectively, shall apply mutatis mutandis to elections provided for in
this chapter.

§ 4-98.14. The Board is authorized to adopt regulations having the
force and effect of law necessary to carry out the provisions and purposes
of this chapter and to insure the operation of orderly and reputable places.
Such regulations shall be adopted in the same manner as regulations are
required to be adopted under Chapter 1 and the General Administrative
Agencies Act.

§ 4-98.15. The sections of this chapter shall be deemed severable.
Should any such section be deemed by judicial opinion or legislative enact-
ment to be invalid, unconstitutional or in any manner contrary to the
laws of this State, such opinion or enactment shall invalidate only that
particular section of this chapter, and all other sections shall remain in
full force and effect.

§ 4-98.16. (a) No person having any interest, direct or indirect,
in the manufacture, distribution or sale of spirits or other alcoholic bever-
ages shall, except ina manner prescribed by the Board, solicit either directly
or indirectly, a licensee under this chapter or any agent, servant or
employee of such licensee, or any person connected with the licensee in
any capacity whatsoever in his licensed business, to sell or offer for sale
the particular spirits or other alcoholic beverage in which such person
may be so interested. The Board, upon proof of any solicitation in violation
of this section, shall terminate for a period of at least one year the sale
through government stores of the brand of spirits or other alcoholic
beverage which was the subject matter of the solicitation. The Board
in its discretion may terminate the sale through such stores of all brands
of spirits or other alcoholic beverages manufactured or distributed by
the employer or principal of such solicitor. The solicitor shall be guilty
of a misdemeanor.

(b) If any person licensed under this chapter, or any agent, servant
or employee of such licensee, or any person connected with the licensee
in any capacity whatsoever in his licensed business shall, either directly
or indirectly, be a party to, consent to, solicit, or aid or abet another in
a violation of subsection (a), he shall be guilty of a misdemeanor and the
license issued to such licensee by the Board under this chapter shall be
revoked.

§ 4-98.17. No license provided for in this chapter shall be issued to
any elective or appointive official of the United States or of this State or
any political subdivision thereof.