Chap. 3.—An ACT to legalize, regulate and control the manufacture, bottling,
sale and disposition of beer, lager beer, ale, porter, wine, similar fermented
malt or vinous liquor, and fruit juice, containing one-half: of one per centum
or more of alcohol by volume, and not more than 3.2 per centum of alcohol
‘by weight; to provide for licensing and taxing manufacturers, bottlers, whole-
salers and retailers of such beverages by the State and the counties, cities and
towns thereof; to impose an excise tax upon all such beverages; to appro-

priate a portion of the revenue derived hereunder for the collection of the
taxes herein imposed and for the administration of the act; to provide for the
- dismissal of pending prosecutions for alleged violations of laws heretofore
in force declaring illegal the beverages legalized by this act where such prose-
cutions are founded upon the then illegality of such beverages; to impose
penalties for violations of the act; and to repeal all acts and parts of acts in
conflict herewith. | : [H. B. 2]
Approved August 29, 1933 .

1. Be it enacted by the General Assembly of Virginia, as follows:

- Section 1. (a) The term “beverages” as used in this act means beer,
lager beer, ale, porter, wine, similar fermented malt or vinous liquor,
and fruit juice, containing one-half of one per centum or more of
alcohol by volume, and not more than three and two-tenths per centum
of alcohol by weight. 4
~- (b) The term “person” as used in this act means an individual,
partnership, association or corporation.

” Section 2. On and after the day this act becomes effective, it shal
be lawful to manufacture, bottle, sell, offer for sale, distribute, carry,
1933] ACTS OF ASSEMBLY 9

ship, transport, possess, drink, use, advertise and dispense, in Virginia
beverages, as defined in section one of this act, subject to the provisions,
conditions and exceptions hereinafter set forth.

Section 3. No person shall within the State manufacture or bottle
for sale, keep or store for sale, sell or offer for sale, beverages, as de-
fined in this act, without having first obtained the license or licenses re-
quired under the provisions of this act.

Section 4. Licenses issued under authority of this act shall be as
follows:

(a). Manufacturers’ licenses, which shall authorize the licensees
to manufacture beverages and to sell the same in barrels, bottles or
other closed containers to other persons for resale only ;

(b) Bottlers’ licenses, which shall authorize the licensees to receive
shipments of beverages in barrels or other closed containers and to
bottle and sell the same to other persons for resale only ; ,

(c) Wholesalers’ licenses, which shall authorize the licensees to sell
beverages in barrels, bottles, or other closed containers to other per-
sons for resale only ;

(d) Retailers’ licenses, which shall authorize the licensees to sell
beverages at retail only and not for resale.

Section 5. Except as hereinafter otherwise provided, State licenses
issued under this act shall be issued by the commissioners of the revenue
of the counties and cities of the State on application filed with them
and the license taxes thereon shall be paid by the applicants to the
county and city treasurers, as is now provided in the case of other
State licenses issuable by commissioners of the revenue. No such
license shall be issued, however, until there shall have been filed with
the commissioner of the revenue authorized to issue such license the
certificate of the court, or of the judge in vacation, as hereinafter pro-
vided.

Section 6. The taxes on State licenses issued pursuant to the pro-
visions of this act shall be as follows:

For each manufacturer’s license, one hundred dollars per annum;
for each bottler’s license, fifty dollars per annum; for each wholesaler’s
license, fifty dollars per annum; and for each retailer’s license, five
dollars per annum.

The tax on the foregoing licenses, except the tax on retailers’ li-
censes, shall be subject to proration, but on all such licenses issued for
any part of the year nineteen hundred and thirty-three there shall be no
proration and the taxes shall be as follows: For each manufacturer’s
license, fifty dollars; for each bottler’s license, twenty-five dollars; for
each wholesaler’s license, twenty-five dollars, and for each retailer’s
license, five dollars.

For every distributing house or place in this State operated by any
person and used in whole or in part for distributing beverages among
his retail stores in this State, a separate State license is hereby required,
and the tax on every such license shall be fifty dollars per annum, which
shall be subject to proration; but on every such license issued for any
part of the year nineteen hundred and thirty-three there shall be no
proration and the tax shall be twenty-five dollars.

Taxes on retailers’ licenses issued for the sale of beverages on rail-
way cars, vessels and aircraft shall be as provided in section fourteen.

All such licenses shall expire on the thirty-first day of December,
next following the date of issuance.

Every such license shall be in lieu of any State merchants’ or State
restaurant license on that portion of the business of the licensee covered
thereby; but no such license shall relieve any licensee of any State tax
whatsoever. ,

Section 7. Any person intending to apply to any commissioner of
the revenue for any State license required by this act shall first file
with the circuit court of the county (or the judge thereof in vacation)
or of the corporation court of the city (or the judge thereof in vacation)
in which is located the place where the applicant proposes to carry on
the business for which the license is to be applied for, a statement in
writing and under oath setting forth (a) that the applicant, if an in-
dividual, or if a partnership or association, each of the members of the
partnership or association, or if a corporation, each of its principal
officers and each of its directors, is not less than twenty-one years of age,
is of good moral character, has never been convicted of any felony in-
volving moral turpitude and has never prior to the seventh day of April,
nineteen hundred and thirty-three, manufactured for sale, possessed for
sale, transported for sale, or sold any intoxicating liquors in violation of
the provisions of any law of the United States or of any law of any
State of the United States, or of any law of the District of Columbia, or
of any ordinance of any political subdivision of any State of the United
States, or been convicted of any violation of such laws or ordinances ;
(b) that the applicant intends to carry on the business to be covered by
the license for himself and not as the agent of any individual, partner-
ship, association, or corporation, and (c) that in the case of an appli-
cant for a retailer’s license, no manufacturer, wholesaler or bottler of
beverages, within or without this State, has any financial interest, direct
or indirect, in the business for which the license is desired or in the
premises in respect of which such license is to be issued, and that such
business will not be conducted with any money, equipment, furniture,
fixtures, or property rented from, or loaned or given by, any manu-
facturer, bottler or wholesaler of beverages, within or without this
State.

Upon the filing of such statement as is herein required, the court or
judge, unless satisfied that the said statement is untrue in some material
respect, shall issue a certificate setting forth that such statement has
been filed in accordance with law and in due form. Every certificate
issued under this section shall be good until such certificate or any
license issued thereon is revoked, and as long as such certificate or any
license issued thereon remains unrevoked, it shall not be necessary for
a certificate-holder to renew such certificate or to obtain a new cer-
tificate in order that he may secure subsequent annual licenses.
1933] ACTS OF ASSEMBLY 11

This section and section five of this act are subject to the following
qualification: That until September fifteenth, nineteen hundred and
thirty-three, the commissioner of the revenue may issue the licenses re-
quired by this act without such certificates being first filed with him; but
such licenses so issued without such certificates shall not be valid longer
than the first day of November, nineteen hundred and thirty-three,
unless in the meantime the licensee shall have obtained the certificate
required by this act and presented the same together with the license to
the commissioner of the revenue for an endorsement on such license by
the commissioner of the revenue that such certificate has been obtained ;
whereupon such license shall be as valid as if the certificate had been
obtained before such license was issued. If any person shall obtain any
such license from any commissioner of the revenue prior to the fifteenth
day of September, nineteen hundred and thirty-three without having
first obtained the certificate required by this section, and shall fail or re-
fuse to present his license and the certificate required by this section
to the commissioner of the revenue for such endorsement on such license
prior to the first day of November, nineteen hundred and thirty-three,
such license shall thereupon become void by operation of law. Fees of
commissioners of the revenue for issuing State licenses under this act
shall be the same as provided by general law for issuing State licenses.

Section 8. Each such license as is hereinbefore provided for in this
act shall designate the place where the business of the licensee will be
carried on. A separate license shall be required for each separate place
of business. The peddling of beverages to consumers is hereby pro-
hibited.

No such license shall be transferable from one person to another,
but may be amended to show a change in the place of business, within
the same county or city.

Each such license issued under the provisions of this act shall be
kept posted in a conspicuous place by the licensee at the place where he
carries on the business for which the license is issued.

Section 9. In addition to the foregoing State licenses provided for in
this act, the board of supervisors or other governing body of each
county, and the council or other governing body of each city and town
in the State is hereby authorized to provide by ordinance for the issu-
ance of county, city and town licenses, and to charge and collect license
taxes therefor, to persons to manufacture, bottle, and sell, within said
county, city or town, beverages. The provisions of any general law or
any special act requiring ordinances adopted by counties to be published,
advertised or submitted to and approved by the judge of the circuit
court, shall not apply to ordinances provided for hereunder, and any
such ordinance adopted by any county shall become effective as pro-
vided therein.

The license taxes which may be charged and collected by such coun-
ties, cities and towns shall not exceed the following sums: For each
manufacturer’s license, two thousand dollars per annum; for each
bottler’s license, one thousand dollars per annum; for each wholesaler’s
license, one thousand dollars per annum, and for each retailer’s license
by a county or town, ten dollars per annum, and for each retailer’s
license by a city of the first class, fifty dollars per annum, and for each
retailer’s license. by a city of the second class, twenty-five dollars per
annum, and the council or other governing body of each city may, in
its discretion, classify licenses and graduate the said licenses in such
manner as it may deem proper.

For every distributing house or place in any county, city or town
operated by any person and used in whole or in part for distributing
beverages among his retail stores in this State, such county, city or town
may require a separate license, and if such license is so required the
tax thereon shall be the same as the license tax imposed by such county,
city or town on a wholesaler therein.

No county, city or town shall issue any such local license to any
person, unless such person shall hold or shall secure simultaneously
therewith the proper State license provided for in this act.

Section 10. (a) There is hereby levied on all beverages manufac-
tured in Virginia an excise tax at the rate of two dollars and seventy-
five cents ($2.75) per barrel of thirty-one gallons, and a tax at the same
rate on such beverages in containers of more or less than thirty-one (31)
gallons, but on such beverages in bottles of not more than twelve ounces
each the tax shall be one cent (1c) per bottle. Such tax shall be paid
by the person who manufactures the said beverages.

(b) There is hereby levied on all beverages bottled in Virginia and
on all beverages sold in Virginia, an excise tax at the rate of two dollars
and seventy-five cents ($2.75) per barrel of thirty-one (31) gallons, a
tax at the same rate on such beverages in containers of more or less than
thirty-one (31) gallons, but on such beverages in bottles of not more
than twelve ounces each the tax shall be one cent (1c) per bottle. The
tax herein levied shall be paid by the respective bottlers and whole-
salers of the said beverages. No such tax shall be collected upon any
beverage bottled or sold in Virginia when the State excise tax provided
in this act shall have been previously levied and paid thereon in full;
but if on beverages bottled in Virginia there shall have been paid by the
manufacturer the excise tax herein levied on beverages manufactured in
Virginia, such bottler shall pay all additional excise taxes which may
be due on such beverages in bottled form.

(c) When any person shall sell or offer for sale in Virginia any
beverages purchased or obtained from any person not licensed either
as a manufacturer, bottler, or wholesaler under the provisions of this
act, and on which the State excise tax herein levied had not been paid,
such person shall pay the tax levied in the preceding subsection. No
license issued to a retailer under this act shall be valid unless and until
such retailer shall have filed with the State Tax Commissioner a bond,
with a guaranty or surety company licensed to do business in this State
‘as surety or personal surety approved by said State Tax Commissioner,
in such penalty as the State Tax Commissioner may find to be sufficient
to cover the tax liability of such retailer, but in no event to be less than
1933] ACTS OF ASSEMBLY , 13

one thousand dollars. The State Tax Commissioner, however, shall
waive the bond requirement aforesaid with respect to any retailer who
may file a satisfactory contract or agreement with the State Tax Com-
missioner that such retailer will purchase for resale beverages from
manufacturers, wholesalers or bottlers licensed in this State and from
no one else. The violation of the terms of any such contract or agree-
ment between any such retailer and the State Tax Commissioner by
the purchase by such retailer of any beverages for resale from any one
other than a manufacturer, bottler, or wholesaler licensed in this State
shall automatically revoke the license of any such retailer and such
retailer shall moreover be guilty of a misdemeanor.

(d) On or before the tenth day of each month every person manu-
facturing, bottling or selling any beverages in Virginia shall file with the
State Tax Commissioner a report under oath on forms which shall be
prescribed by the State Tax Commissioner showing the quantity of all
beverages manufactured, bottled and/or sold by such person during the
preceding month, the amount of tax for which such person is liable
under the provisions of this act, and containing such other information
as the State Tax Commissioner may require. At the same time such
person shall pay to the State Tax Commissioner all such excise taxes
chargeable against him under the provisions of this act on all such
beverages so manufactured, bottled and/or sold during the preceding
month. The provisions of this subsection as to the filing of such
monthly reports shall not be applicable to any retailer who purchased
beverages from manufacturers, wholesalers or bottlers licensed in this
State and from no one else; provided, such retailer shall have duly filed
with the State Tax Commissioner the contract or agreement mentioned
in the preceding subsection.

(e) The excise tax herein provided for shall not be chargeable
against any manufacturer, bottler or wholesaler on any beverages ship-
ped out of this State by such manufacturer, bottler or wholesaler for
resale out of this State, provided evidence satisfactory to the State Tax
Commissioner be submitted to him in writing at the time when such tax
would be otherwise payable that such beverages were shipped out of
this State by such manufacturer, bottler or wholesaler for resale out of
this State. ,

(£) All monies collected by the State Tax Commissioner under the
provisions of this act shall be promptly paid into the general fund of
the State treasury.

Section 11. The State Tax Commissioner is hereby authorized to
adopt such rules and regulations as he may find expedient for the en-
forcement of the tax provisions of this act. He is specifically au-
thorized to require the use of stamps upon any containers containing
beverages taxable under this act and offered for sale in Virginia,
evidencing the payment of the said excise tax upon the contents of every
such container; with respect to beverages manufactured and bottled or
bottled in this State he may require to be used on such bottles crowns,
to be prescribed by the State Tax Commissioner, evidencing the pay-
ment of the said excise tax upon all such beverages so bottled. He 1s
further authorized to promulgate rules and regulations governing the
purchase, sale and distribution of such stamps and crowns, and to pro-
vide for the sale of such stamps through county and city treasurers.

If the use of crowns and stamps, or of crowns or stamps, shall be
required by the State Tax Commissioner under the authority of this act,
it shall be a misdemeanor for any person to distribute, deal in or use
any crowns or stamps except in accordance with rules and regulations
prescribed by the State Tax Commissioner; the forging or counterfeit-
ing of any such stamps or crowns shall constitute a felony punishable
by confinement in the penitentiary for not less than two nor more than
ten years.

If the State Tax Commissioner shall require the use of stamps and
crowns, or of stamps or of crowns, as authorized in this section, he
may waive so much of subsection (d) of section ten of this act as he
may regard unnecessary for the efficient administration of this act.

Section 12. (a) Every manufacturer, bottler and wholesaler licensed
in Virginia shall keep a complete and accurate record of all beverages
manufactured and/or bottled by him and all beverages sold by him.
Such record shall show the quantities of all such beverages manufac-
tured and/or bottled by him, the dates of all sales and shipments, the
names and addresses of all persons to whom sales and shipments are
made, the quantities and kinds of beverages sold and shipped, and the
prices charged therefor. Each such manufacturer, bottler and whole-
saler shall also prepare and transmit to each person purchasing any
beverages an invoice showing the date of the shipment, the quantity and
kinds of beverages purchased, and the prices charged therefor, and no
part of said beverage shall be delivered to any retailer on any Sunday.

(b) Every retailer shall keep a complete and accurate record of all
purchases of beverages, the dates of such purchases, the kinds and
quantities of beverages purchased, the prices charged him therefor,
and the names and addresses of the persons from whom purchased.
Every retailer shall also preserve all invoices showing his purchases,
and it shall be a misdemeanor for any retailer of beverages in this State
to have in his possession for sale any beverages for which he has no
invoice showing the purchase thereof. Every retailer shall keep an
accurate account of daily sales, showing the quantities of beverages
sold and the total price charged by him therefor; such account need
not give the names or addresses of purchasers.

(ce) All such records, invoices and accounts shall at all times be
open to inspection by the State Tax Commissioner and any person or
persons that he may designate as his agent.

(d) The State Tax Commissioner and his duly authorized agents
shall at all times be allowed free access during business hours to every
place in this State where beverages are manufactured, bottled, stored,
offered for sale and/or sold, for the purpose of examining and inspect-
ing such place and all records, invoices and accounts therein.
Section 13. (a) No person licensed as a retailer under this act shall
1933] © ACTS OF ASSEMBLY 15

sell, or serve any beverages to any person under eighteen years of age.

(b) No person licensed as a retailer under this act shall sell, or
offer for sale, or permit the consumption of any beverages behind a
screen or any other similar device in his place of business which screen
or device may conceal such sale, offering for sale, or consumption from
the view of persons who may be in such place of business and not
behind such screen or other similar device.

Section 14. The State Tax Commissioner is hereby authorized to
issue retailers’ licenses permitting the sale of beverages at retail on
passenger trains in dining cars, buffet cars and club cars, on vessels
(engaged in the transportation of passengers) in dining rooms and
restaurants thereon, and in aircraft engaged in the transportation of
passengers when such aircraft are equipped for serving meals thereon.
The tax on each such license shall be two hundred dollars per annum,
except that the tax on retailers’ licenses permitting the sale of beverages
at retail on passenger trains in dining cars, buffet cars and club cars
shall be five dollars per annum for each such car, and on vessels en-
gaged in the transportation of passengers the tax shall be fifty dollars
per annum on each such vessel.

Every such license shall expire on December thirty-first of the year
in which issued. The tax thereon shall be subject to proration.

Every such license shall be good throughout the State as a State
license. Only one such license shall be required for all cars, vessels or
aircraft operated in this State by the same owner or operator. Such
licenses shall be issued only to the owners or operators of such cars,
vessels or aircraft, but shall cover the privilege of selling such bev-
erages by persons authorized by such owners or operators to sell the
same on their cars, vessels or aircraft. No further license tax shall be
required by any county, city or town for the privilege of selling bev-
erages on such cars, vessels or aircraft. Every applicant for a license
under this section shall obtain the certificate required of retailers gen-
erally by section seven of this act, but jurisdiction to grant certificates
to the owners or operators of railway cars and aircraft shall be vested
in the circuit court of the city of Richmond, or the judge thereof in
vacation, and jurisdiction to grant certificates to the owners or operators
of vessels shall be vested in the corporation court of the city of Nor-
folk, or the judge thereof in vacation. Licensees under this section
shall have thirty days from the end of each month within which to file
the monthly reports required by paragraph (d) of section ten of this act.

Section 15. No manufacturer, bottler or wholesaler of beverages,
whether licensed in this State or not, nor any officer or director of any
such manufacturer, bottler or wholesaler shall have any financial in-
terest, direct or indirect, in the business for which any retailer’s license
under this act is issued, or in the premises where the business of any
person to whom a retailer’s license has been issued hereunder is con-
ducted ; nor shall any manufacturer, bottler, or wholesaler of beverages,
whether licensed in this State or not, nor any officer or director of any
such manufacturer, bottler or wholesaler, rent, lend, or give to any
person licensed hereunder as a retailer, or to the owner of the premises
on which the business of any such retailer is conducted, any money,
equipment, furniture, fixtures or property with which the business of
such retailer is or may be conducted. Any person violating the pro-
visions of this section shall be guilty of a misdemeanor and upon con-
viction shall be punished accordingly. -

Any retailer consenting to any violation of the next preceding para-
graph shall likewise be guilty of a misdemeanor and upon conviction
shall be punished accordingly.

Section 16. Any person who shall manufacture or bottle for sale or
sell or offer for sale any beverages without being licensed as required
by this act, or shall fail or refuse to pay any tax provided for herein,
or shall fail or refuse to deliver, keep and preserve such records, in-
voices, and accounts as are required by section twelve of this act, or
shall fail or refuse to allow such records, invoices, and accounts or his
place of business to be examined and inspected as herein provided, or
shall violate any other provision of this act for which no other penalty
is prescribed, shall be deemed guilty of a misdemeanor and shall, upon
conviction, be punished accordingly.

Section 17. Any person licensed under the provisions of this act,
who shall sell, or promote any sale on his premises or in connection
with his business or otherwise, of any alcoholic beverages or liquors
not included within the term “beverages” as defined in this act, unless
otherwise permitted by law so to do, shall, upon conviction thereof, in
addition to any punishment imposed by law for such offense, forfeit any
license issued to him under this act, and no other license shall be issued
to him hereunder within three years from the date of such forfeiture.

Section 18. For the exercise of the powers conferred and the per-
formance of the duties imposed upon the State Tax Commissioner by
this act, including the employment of necessary assistants, there is
hereby appropriated to the State Tax Commissioner for the residue of
the current fiscal year five per centum of the revenue which shall be
derived during such period from the State taxes herein provided for.
Until sufficient funds for the purpose above set forth, shall be derived
under this act, the Treasurer shall, from any monies in the treasury
not otherwise appropriated, upon the warrants of the Comptroller, issued
upon vouchers signed by the State Tax Commissioner, pay all necessary
expenses incurred by the State Tax Commissioner in the administra-
tion of this act, and any and all amounts so advanced shall later be
deducted from that portion of the revenue herein appropriated to the
State Tax Commissioner. |

Section 19. All acts and parts of acts, general, special, private and
local, including charter provisions of cities and towns, inconsistent with
any of the provisions of this act, are hereby repealed to the extent of
such inconsistency. ,

Section 20. Every warrant, indictment, charge or prosecution now
pending against any person for violation of the laws of this State,
where the violation consists of the sale, possession or transportation
of wine or beer containing not in excess of three and two-tenths per
centum (3.2%) of alcohol by weight shall be dismissed, and any wine
yr beer containing not in excess of three and two-tenths per centum
(3.2%) of alcohol by weight now held as evidence in the case, together
vith any vehicle in which they were conveyed, shall be returned to its
ywner.

Section 21. If any section of this act be declared invalid, such
jeclaration shall not affect the remaining sections.

2. An emergency existing, this act shall be in force on and after
ive days from its passage.