COMMONWEALTH OF VIRGINIA

DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL

VIRGINIA ALCOHOLIC BEVERAGE CONTROL BOARD

RICHMOND

December 2, 1992

CIRCULAR LETTER

TO: ALL WHOLESALERS AND RETAILERS LICENSED FOR THE OFF-PREMISES SALE OF

ALCOHOLIC BEVERAGES

SUBJECT: WHOLESALE AND RETAIL KEG SALES.

PURPOSE: The purpose of this circular letter is to inform those concerned of Regulation VR125-01-7 18 recently adopted by the Alcoholic Beverage Control Board regulating the sale of containers capable of holding four gallons or more of beer, wine or beverages known as a "kegs".

BACKGROUND: From time to time, the Board and its agents receive information regarding the possession of keg beer and wine by underage persons. Identifying the persons responsible for allowing underage persons to possess and consume alcoholic beverages causes considerable difficulty for Virginia law enforcement officials. The Board feels the underage possession of alcoholic beverages in kegs warranted the registration of kegs sold for off premises consumption and as such has adopted Regulation VR125-01-7.

HELD:   Effective January 13, 1993 all retail establishments licensed for off 

1.    Require the purchaser to produce a valid form of identification confirming
      the purchaser is at least 21 years of age.
2.    Fill out a Keg Registration Declaration and Receipt, hereafter known as

3.    Have the purchaser read and sign the declaration.
4.    Attach to every keg sold a Registration seal which must be signed by the
      purchaser and attached to the side of each keg near the top.
5.    Remove the Registration seal from the keg when returned and note such
      action on the seller's copy of the Keg Registration Declaration and
      Receipt.
6.    Keep accurate records of all off-premises sales of kegs.
7.    Retain the Keg Registration Declaration and Receipt booklet and make it
      available for inspection by any law enforcement officer or agent of the
      Board.  When the booklet is completely full, the licensee is required to
      return the booklet to the License Section of the Department of Alcoholic
      Beverage Control, Richmond, VA in order to obtain an additional booklet.

Permits are subject to suspension or revocation, as provided in 4-37 of the Code of Virginia.

EXEMPTIONS: Wholesalers are not required to register kegs sold to persons holding retail licenses. Retailers and wholesalers are not required to register kegs sold to persons holding banquet or banquet special events licenses provided that the purchasers present their licenses at the time of sale.

SUMMARY: No retail licensee may sell kegs for off-premises consumption without an Off-Premises Keg Permit after January 12, 1993.

INQUIRIES: Inquires concerning the above should be directed to the A.B.C. District Office nearest you or to your local agent. A list of those offices are attached.

VIRGINIA ALCOHOLIC BEVERAGE CONTROL BOARD

Robert N. Winson

Secretary

VR125-01-7

18. Regulation of the sale of alcoholic beverages in kegs and other containers; permit and registration; other requirements.

A. Generally. - The following definitions shall apply for purposes of this

section:

1. "Keg". - Any container capable of holding four gallons or more of beer,

wine or beverages and which is designed to dispense beer, wine or

beverages directly from the container for purposes of consumption; and

2. "Registration seal". - Any document, stamp, declaration, seal, decal,

sticker or device approved by the board which is designed to be

affixed to kegs and which displays a registration number and such

other information as may be prescribed by the board. B. Permits. - The board may grant to any person licensed to sell wine, beer or

beverages at retail for off-premises consumption, a permit to sell such

alcoholic beverages or beverages in kegs for off-premises consumption. Such

permit shall be subject to suspension or revocation, as provided in 4-37 of

the Code of Virginia. No permit shall be required, however, to sell alcoholic

beverages or beverages in kegs to banquet licensees or to retail licensees

for on-premises consumption. Sales of such kegs to banquet licensees shall be

permitted upon presentation of a banquet license by the purchaser to the

seller. C. Restrictions.

1. No person licensed by the board to sell wine, beer or beverages at

retail for off-premises consumption, or any officer, agent or employee

thereof, shall sell any such alcoholic beverage or beverages in a keg

without having (i) obtained a permit pursuant to B. of this section

authorizing such sales, (ii) registered the sale on a form prescribed

by the board, and (iii) affixed a registration seal on the keg at the

time of sale; provided, if the purchaser takes possession of the keg at

the premises of the wholesale licensee pursuant to G. of this section,

the wholesale licensee shall affix the registration seal.

2. Prior to the sale of alcoholic beverages in kegs, the keg registration

declaration and receipt form provided by the board shall be properly

completed and shall contain:

a. The name and address of the purchaser verified by valid

identification as defined in VR125-01-5 2.B.

b. The type and number of the identification presented by the

purchaser;

c. A statement, signed by the purchaser, that the purchaser is

twenty-one years of age or older; does not intend to allow

persons under twenty-one years of age to consume the alcoholic

beverages purchased; and that the purchaser will not remove or

obliterate the keg registration tag affixed to the keg or allow

its removal or obliteration; and

d. The particular address or location where the keg will be

consumed, and the date or dates on which it will be consumed.

3. Where the purchaser obtains more than one keg for consumption at the

same location and on the same date, only one keg registration

declaration and receipt form must contain all required information. All

other keg registration declaration and receipt forms for that

particular transaction shall contain the registration number from the

fully completed form as a reference and be signed by the purchaser.

Such keg registration declaration and receipt forms which contain the

reference number of a fully completed form and have been signed by the

purchaser constitute a valid and properly completed keg registration

and declaration receipt.

4. The keg registration seal affixed to the keg may serve as the

purchaser's receipt. Upon receipt of a properly registered keg from a

consumer, the retail licensee shall remove and obliterate the keg

registration seal from the keg and note such action on the keg

registration declaration and receipt form to be retained by the retail

licensee on the licensed premises. Kegs made of disposable packaging do

not have to be returned to the retail licensee. The retailer shall

indicate on the keg declaration and receipt form that the keg was not

returnable due to its disposable packaging. D. For the purpose of tracing the kegs and purchaser responsibility, it shall be

the responsibility of the seller to affix the properly completed and signed

keg registration seal to all containers of four gallons or more of alcoholic

beverages prior to the container leaving control of the seller. E. Except in accordance with these regulations, no person shall remove, alter,

deface, or obliterate the registration seal affixed to a keg pursuant to this

regulation. Throwing away empty kegs made of disposable packaging shall not

constitute obliteration of the keg registration seal. If any non-licensee of

the board is in possession of a keg containing alcoholic beverages, and which

keg does not bear the registration seal, or upon which keg the registration

seal has been altered, defaced or obliterated, the container and its contents

shall be deemed to be contraband and subject to seizure and forfeiture. F. Any retail licensee granted a permit by the board pursuant to B. of this

section shall maintain a complete and accurate record of all registration

forms and other documentation of the sale of kegs at the place of business

designated in his license for a period of one year. Such records shall

include the registration seal for non-disposable kegs, which the retail

licensee shall remove from the keg upon its return by the purchaser.

Moreover, such records regarding keg sales shall at all reasonable times be

open to inspection by the board or its authorized representatives, or other

law enforcement officers. G. Before a purchaser may take possession of a keg at the premises of the

wholesale licensee after purchasing such keg from a retail licensee, the

purchaser shall be required to (i) complete the registration of the

transaction at the premises of the retail licensee and (ii) deliver the

registration seal to the wholesale licensee who shall affix it to the keg;

however, no wholesale licensee may deliver possession of any such keg to the

purchaser until the wholesale licensee has collected payment from the retail

licensee pursuant to 125-01-3 4. H. Except as authorized by the board, no person shall transfer possession of or

give the registered keg or container to another person. This prohibition

shall not apply, however, to the return of the registered container to the

seller.

Listed below are some of the changes made to the A.B.C. Regulations which may affect you as a licensee.

Permit Required to Sell Kegs

A retail licensee authorized to sell wine, beer or beverages for off-premises consumption may not sell kegs without having (i) obtained a permit authorizing such sales, (ii) registered the sale on a form prescribed by the Board, after first checking the purchaser's identification and (iii) affixed a registration seal on the keg at the time of sale; provided, if the purchaser takes possession of the keg at the wholesaler's premises, then the wholesale licensee shall affix the registration seal. Except as authorized by the Board, no person shall transfer possession of or give the registered keg or container to another person. This prohibition shall not apply to returning the registered container to the seller. No person, other than a retail licensee, shall remove, alter, deface or obliterate the registration seal affixed to the keg.

Wholesalers are not required to register kegs sold to persons holding retail licenses. Retailers and wholesalers are not required to register kegs sold to persons holding banquet or banquet special events licenses provided that the purchasers present their licenses at the time of sale. (VR125-01-7 18)

Nonalcoholic Beer and Nonalcoholic Wine Advertising

The Board shall not regulate advertising of nonalcoholic beer and nonalcoholic wine if (i) a reasonable person by common observation would conclude that the advertising clearly does not represent any advertisement for alcoholic beverages or beverages and (ii) the advertising prominently states that the product is nonalcoholic. (VR125-01-2 1.F.)

Manufacturers and wholesalers of alcoholic beverages may sell, lend, buy for or give retail licensees canvas fabric banners containing only two-dimensional display surfaces.

Retail licensees may display permanent point-of-sale advertising for nonalcoholic beer and nonalcoholic wine subject to the limitations of VR125-01-2

1.F. above. Manufacturers and wholesalers of alcoholic beverages may not provide this permanent point-of-sale advertising to retailers. Retailers must keep accurate records for all permanent point-of-sale advertising for nonalcoholic beer and nonalcoholic wine.

Manufacturers and wholesalers may supply retailers with napkins, placemats, coasters and back-bar pedestals which contain a reference to the name of a nonalcoholic beer or nonalcoholic wine as permitted under VRl25-01-2 1.F. above or a public safety message relating to moderation and responsible drinking.

Beer and wine "neckers", recipe booklets and brochures relating to the wine manufacturing process, vineyard geography and history of a wine manufacturing area are not required to be shipped in the case. (VR125-01-2 2)

New License Category Known as Gift Shop

A gift shop is "... defined as any bona fide retail store selling predominantly (i) floral arrangements or handmade arts and crafts, which may include a combination of gifts, books, specialty items, collectibles or other original and handmade products; and (ii) which is open to the public on a regular basis in a permanent structure where stock is displayed and offered for sale and which has facilities to properly secure any stock of wine". (VR125-01-5 20)

Limitation on Clubs Obtaining Licenses

Clubs are limited from obtaining a banquet special events license or a mixed beverage special events license more than 12 times per calendar year for the unlicensed portions of their premises. (VR125-01-5 13)

Radio Advertising for Alcoholic Beverages

Distilled spirits with less than 15% alcohol may be advertised on the radio. Electronic advertising for alcoholic beverages containing more than 14% alcohol, but less than 22% alcohol (i.e. fortified wines), shall emphasize that alcoholic beverages are traditionally served with meals. (VR125-01-2 5)

Miscellaneous

Order blanks for novelty and specialty items and entry blanks for contests and

sweepstakes may be shipped in the case to retail licensees.

(VR125-01-2 2 and 6)

Wholesaler wine licensees may attach refund coupons to packages of wine.

However, wholesale beer licensees may not attach refund coupons to packages of

beer. (VR125-01-2 9)

Manufacturers and wholesalers of distilled spirits may list an unlimited

number of distilled spirits brands on clip-ons and table tents.

(VR125-01-3 6, formerly 7)

Brewpubs may sell beer in growlers to customers for off-premises consumption.

Growlers are reusable, resealable containers used to hold draft beer from a

draft tap. (VR125-01-4 4)

Boats with wine and beer on- or on- and off-premises licenses will not have to

serve meals in dining rooms or prepare meals on the licensed premises.

Licensees still must meet monthly food sale requirements of $2,000.

(VR125-01-5 11)

A.B.C.'s retail stores may accept credit or debit cards from consumers for the

retail purchase of alcoholic beverages. Formerly an emergency regulation, this

regulation will now become permanent. (VR125-01-7 17)

For More Information, Contact:

Department of Alcoholic Beverage Control

     P.O. Box 27491     Richmond, VA 23261-7491