TITLE 3. ALCOHOLIC BEVERAGES
Title of Regulation: 3VAC5-70. Other Provisions (amending 3VAC5-70-10).
Statutory Authority: §§ 4.1-103 and 4.1-111 of the Code
Public Hearing Information: No public hearings are
Public Comment Deadline: March 31, 2017.
Effective Date: April 15, 2017.
Agency Contact: LaTonya D. Hucks, Legal Liaison,
Department of Alcoholic Beverage Control, 2901 Hermitage Road, Richmond, VA
23220, telephone (804) 213-4698, FAX (804) 213-4574, or email
Basis: Section 4.1-103 of the Code of Virginia
authorizes the Alcoholic Beverage Control Board to promulgate regulations in
accordance with the Administrative Process Act (§ 2.2-4000 et seq. of the
Code of Virginia) and § 4.1-111 of the Code of Virginia.
Section 4.1-111 of the Code of Virginia authorizes the board
the authority to promulgate reasonable regulations necessary to carry out the
provision of Title 4.1 of the Code of Virginia.
Section 4.1-212 of the Code of Virginia grants the board the
authority to issue permits for the transportation of alcoholic beverages within
or through the Commonwealth.
Purpose: The purpose of the amendments is to eliminate
the requirement for the agency to issue a permit to commercial carriers (now
motor carriers) regularly engaged in the transportation of alcoholic beverages
within or through the Commonwealth. The amendment adds language to require
motor carriers transporting alcoholic beverages to have in their possession a
bill of lading or other commercial document describing the alcoholic beverages
being transported and showing the names and addresses of the consignor and
consignee who may lawfully ship and receive such shipment and requires that
such documentation be provided to special agents of the board or any
law-enforcement officer for inspection upon request.
Currently transportation permits are issued without cost. The
agency has no electronic means to track these permits and as such they are not
readily accessible to law-enforcement agencies. The amended language will bring
regulation into conformity with current practice of the agency of deeming
shipments of alcoholic beverages to be legal provided the motor carrier has
bill of lading or other commercial document in its possession.
The amendments will have no impact on the public's safety. The
proposed amendment will provide law enforcement the ability to quickly
determine the legality of the shipment of alcoholic beverages.
Rationale for Using Fast-Track Rulemaking Process: This
proposal is expected to be noncontroversial as it reduces a regulatory
requirement on the transportation industry.
Substance: The amendments eliminate the requirement for
motor carriers to obtain a transportation permit to lawfully transport
alcoholic beverages within or through the Commonwealth provided that they have
a bill of lading or other commercial document in their possession while
transporting alcoholic beverages.
Issues: The primary advantage for the agency and the
transportation industry is to conform current language to standard practices of
this industry and eliminate a regulatory burden on motor carriers. The agency
benefits by not having to expend personnel resources in issuing the no cost
permits. There are no disadvantages to the public or the Commonwealth.
Department of Planning and Budget's Economic Impact
Summary of the Proposed Amendments to Regulation. The Alcoholic
Beverage Control Board (Board) proposes to amend its Other Provisions
regulation to eliminate the requirement that commercial carriers engaged in the
regular transport of alcoholic beverages within or through Virginia obtain a
Board permit for such transportation. Instead of requiring a permit, the Board
proposes to allow carriers to use bills of lading1 or other
commercial memorandum describing what is being shipped and the addresses and
names of who is shipping the alcohol and who is receiving it.
Result of Analysis. Benefits outweigh costs for all proposed
Estimated Economic Impact. Current regulation requires
commercial carriers who will be transporting alcohol in or through Virginia to
first obtain a permit from the Board to do so. This permit allows the Board to
know what is being shipped and allows special agents of the board and
law-enforcement officers to check shipments when necessary to ensure that the
permit matches the cargo. Although there is no fee charged to commercial
carriers for Board issued permits, they still incur time costs for obtaining
this extra document. The Board also incurs costs for staff time to issue such
The Board proposes to eliminate the requirement that commercial
carriers obtain a permit and instead let them use bills of lading and other
commercial memorandum that they would have in their possession as a matter of
course when completing the commercial transaction of shipping cargo in the same
manner that permits are now used. Commercial carriers will be required to have
this documentation in their possession and present it to special agents of the
Board or law-enforcement officers if asked. Since carriers already have
documentation of their shipments for verification of receipt and delivery of
cargo, no entities are likely to incur costs on account of this proposed
regulation. Both commercial carriers and Board staff are likely to see small
saving for time not spent on obtaining or issuing permits.
Businesses and Entities Affected. These proposed regulatory
changes will affect all commercial carriers who transport alcoholic beverages
in or through the Commonwealth of Virginia.
Localities Particularly Affected. No locality is likely to be
particularly affected by these proposed regulatory changes.
Projected Impact on Employment. These proposed regulatory
changes are unlikely to affect employment in the Commonwealth.
Effects on the Use and Value of Private Property. These
proposed regulatory changes are unlikely to affect the use or value of private
property in the Commonwealth.
Real Estate Development Costs. These proposed regulatory
changes are unlikely to affect real estate development costs in the
Definition. Pursuant to § 2.2-4007.04 of the Code of Virginia,
small business is defined as "a business entity, including its affiliates,
that (i) is independently owned and operated and (ii) employs fewer than 500
full-time employees or has gross annual sales of less than $6 million."
Costs and Other Effects. No small businesses will be adversely
affected by these proposed regulatory changes.
Alternative Method that Minimizes Adverse Impact. No small
businesses will be adversely affected by these proposed regulatory changes.
Businesses. No businesses will be adversely affected by these
proposed regulatory changes.
Localities. Localities in the Commonwealth are unlikely to see
any adverse impacts on account of these proposed regulatory changes.
Other Entities. No other entities are likely to be adversely
affected by these proposed changes.
1 A bill of lading is a document issued by a carrier or
its agent to acknowledge receipt of cargo for shipment.
Agency's Response to Economic Impact Analysis: The
Department of Alcoholic Beverage Control concurs with the economic impact
analysis prepared by the Department of Planning and Budget.
The amendments eliminate the requirement for the board to
issue a permit to commercial carriers engaged in the regular transportation of
alcoholic beverages within or through the Commonwealth by adding the
requirement that (i) motor carriers transporting alcoholic beverages have in
their possession a bill of lading or other commercial memorandum describing the
alcoholic beverages being shipped and the name and address of the consignor and
consignee who lawfully may ship and receive such alcoholic beverages and (ii) a
motor carrier transporting alcoholic beverages make the bill of lading or
commercial memorandum available for inspection by special agents of the board
or any law-enforcement officer upon request.
3VAC5-70-10. Transportation of alcoholic beverages;
noncommercial permits; commercial carrier permits; refusal, suspension or
revocation of permits; exceptions; out-of-state limitation not affected.
A. The transportation within or through this Commonwealth of
alcoholic beverages lawfully purchased within this Commonwealth is prohibited,
except upon a permit issued by the board, when in excess of the following
1. Wine and beer. No limitation.
2. Alcoholic beverages other than those described in
subdivision 1 of this subsection. Three gallons; provided, however, that
not more than one gallon thereof shall be in containers containing less than
1/5 of a gallon.
If any part of the alcoholic beverages being transported is
contained in a metric-sized container, the three-gallon limitation shall be
construed to be 12 liters, and not more than four liters shall be in containers
smaller than 750 milliliters.
The transportation within, into, or through this
Commonwealth of alcoholic beverages lawfully purchased outside of this Commonwealth
is prohibited, except upon a permit issued by the board, when in excess of the
Alcoholic beverages, including wine and beer. One gallon
(four liters if any part is in a metric-sized container).
If satisfied that the proposed transportation is otherwise
lawful, the board shall issue a transportation permit, which shall accompany
the alcoholic beverages at all times to the final destination.
B. Commercial carriers desiring to engage regularly in the
transportation of alcoholic beverages within, into, or through this
Commonwealth shall, except as hereinafter noted,
file application in writing
for a transportation permit obtain a transportation permit from the
board or otherwise possess acceptable documentation as required by the following
A transportation permit may be obtained by filing an
application in writing upon forms furnished by the board. If satisfied that
the proposed transportation is otherwise lawful, the board shall issue a
transportation permit. Such permit shall not be transferable and shall
authorize the carrier to engage in the regular transportation of alcoholic
beverages upon condition that there shall accompany each such transporting
: 1. A a bill of lading or other memorandum describing the
alcoholic beverages being transported , and showing the names and
addresses of the consignor and consignee, who shall be lawfully entitled to
make and to receive the shipment ; and 2. Except for express companies and
carriers by rail or air, a certified photocopy of the carrier's transportation
permit. Such a bill of lading or other memorandum may serve as a
transportation permit so long as it is made available for inspection to special
agents of the board or any law-enforcement officer upon request.
C. The board may refuse, suspend, or revoke a
carrier's transportation permit, including the use of a bill of lading or
other memorandum as a transportation permit as provided in subsection B of this
section, if it shall have reasonable cause to believe that alcoholic
beverages have been illegally transported by such carrier or that such carrier
has violated any condition of a permit. Before refusing, suspending, or
revoking such permit, the board shall accord the carrier involved the same
, and opportunity to be heard , and follow the same
administrative procedures accorded an applicant or licensee under Title 4.1 of
the Code of Virginia.
D. There shall be exempt from the requirements of this
1. Common carriers by water engaged in transporting lawfully
acquired alcoholic beverages for a lawful consignor to a lawful consignee;
2. Persons transporting wine, beer, or cider purchased from
the board or a licensee;
3. Persons transporting alcoholic beverages
may be manufactured and sold without a license;
4. A licensee transporting lawfully acquired alcoholic
beverages he is authorized to sell in a vehicle owned or leased by the
5. Persons transporting alcoholic beverages to the board, or
to licensees, provided that a bill of lading or a complete and accurate
memorandum accompanies the shipment, and provided further, in the case of the
licensee, that the merchandise is such as his license entitles him to sell;
6. Persons transporting alcoholic beverages as a part of their
official duties as federal, state, or municipal officers or employees;
7. Persons transporting lawfully acquired alcoholic beverages
in a passenger vehicle, other than those alcoholic beverages referred to in
subdivisions D 2 and D 3 of this section, provided the same are in the
possession of the bona fide owners thereof
, and that no occupant of the
vehicle possesses any alcoholic beverages in excess of the maximum limitations
set forth in subsection A of this section.
E. This section shall not be construed to alter the
one-gallon (four liters if any part is in a metric-sized container) limitation
upon alcoholic beverages
which that may be brought into the
Commonwealth pursuant to § 4.1-310 E of the Code of Virginia.
VA.R. Doc. No. R17-4755; Filed January 18, 2017, 2:15 p.m.