TITLE 3. ALCOHOLIC BEVERAGE AND CANNABIS CONTROL

VIRGINIA ALCOHOLIC BEVERAGE CONTROL AUTHORITY

Proposed Regulation

Title of Regulation: 3VAC5-20. Advertising (amending 3VAC5-20-10, 3VAC5-20-30, 3VAC5-20-90, 3VAC5-20-100; repealing 3VAC5-20-20, 3VAC5-20-60).

Statutory Authority: §§ 4.1-103, 4.1-111 and 4.1-320 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: September 27, 2024.

Agency Contact: LaTonya D. Hucks-Watkins, Senior Legal Counsel, Virginia Alcoholic Beverage Control Authority, 7450 Freight Way, Mechanicsville, VA 23116, telephone (804) 213-4698, FAX (804) 213-4574, or email latonya.hucks-watkins@virginiaabc.com.

Basis: Section 4.1-103 of the Code of Virginia provides that the Virginia Alcoholic Beverage Control Authority Board of Directors has the authority to adopt regulations and to do all acts necessary or advisable to carry out the purposes of Title 4.1 of the Code of Virginia. Section 4.1-111 of the Code of Virginia authorizes the board to promulgate regulations that establish reasonable time, place, and manner restrictions on outdoor advertising of alcoholic beverages so that such advertising does not encourage or otherwise promote the consumption of alcoholic beverages by persons to whom alcoholic beverages may not be lawfully sold.

Purpose: This regulation is essential to protect the health, safety, and welfare of citizens because it provides guidance for alcohol advertising to ensure that regulants do not engage in conduct that would (i) encourage consumption by those that cannot lawfully consume, (ii) violate the Tied House Laws (3VAC5-30), or (iii) mislead or harm the public.

Substance: The proposed amendments (i) include a new provision that excludes combinations of food and alcoholic beverages offered at a discounted price by an on-premises licensee during the permitted hours for a happy hour pursuant to 3VAC5-50-160 from the prohibition against advertising that constitutes or contains an offer to pay or provide anything of value conditioned on the purchase of alcoholic beverages and (ii) remove unnecessary and duplicative provisions.

Issues: The primary advantage to the public is that the public can now enjoy combination food and alcoholic discounts during happy hour. Also, the proposed amendments make the regulation more understandable by removing provisions that do not relate to advertising. The authority is of the position there are no disadvantages to the public regarding the amendments. The primary advantage to the Commonwealth is that the regulation utilizes current terminology and the changes bring clarity to certain advertising rules that have been subjective and caused confusion in the regulated community. There are no disadvantages to the Commonwealth.

Department of Planning and Budget's Economic Impact Analysis:

The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. As part of a periodic review, the Virginia Alcoholic Beverage Control Authority Board of Directors (board) proposes to update the rules pertaining to outdoor advertising of alcoholic beverages, remove language that it reports is redundant to the Code of Virginia, and align the regulation with current industry practices.

Background. Section 4.1-111 B 13 of the Code of Virginia directs the board to "establish reasonable time, place, and manner restrictions on outdoor advertising of alcoholic beverages," and § 4.1-112.2 of the Code of Virginia provides specific distance and zoning requirements for outdoor advertising, indicates when the board may grant variances, and lists acceptable exceptions to the distance and zoning requirements.² In addition, § 4.1-113 of the Code of Virginia limits the type of indoor advertising that the board may regulate.³ Accordingly, 3VAC5-20 addresses various details pertaining to interior and exterior advertising of alcoholic beverages, print and electronic media, coupons, and other advertising channels. In order to meet the regulatory reduction requirements of Executive Order 19, the board met six times between June and October 2022 to review all of the Virginia Alcoholic Beverage Control Authority (ABC) regulations and convened roughly 60 stakeholders, representing all categories of license holders.⁴ Thus, the board seeks to make a number of changes that would update the regulation to reflect current practice, align the language with statute, and remove redundant or obsolete language. The most substantive changes are summarized as follows.

3VAC5-20-10: Advertising; generally; cooperative advertising, federal laws; cider; restrictions. Eliminate the requirement that advertising of cider conform to the requirements for advertising beer because the laws governing advertising apply to all types of alcohol and alcoholic beverages, except as specifically indicated. Thus, the current requirement is moot as there are no separate requirements for beer to which cider advertising could conform.⁵

Specify that advertising should not tend to induce "persons younger than 21 years of age" to drink or consume to excess. The current language refers to "minors," which was not defined, but implied individuals younger than 18 years of age. This change would newly prohibit advertising targeted at persons older than 18 years of age and younger than 21 years of age.

Remove the current language restricting the use of present or former athletes and athletic teams and suggesting that the product enhances athletic prowess. The replacement language would prohibit advertising that "implies that the product enhances athletic prowess; depicts any athlete consuming or about to consume alcohol prior to or while engaged in an athletic activity; or depicts an athlete consuming alcohol while operating or about to operate a motor vehicle or other machinery." ABC states that this change acknowledges the growing collaborations between sports teams and manufacturers, while ensuring that the use of these images does not imply any of the prohibitions listed in the regulation.

The current language prohibiting any advertising for a contest or sweepstakes "where a purchase is required for participation" would be amended to specify that the prohibition only applies to the "purchase of alcoholic beverages." Under the current language, advertising is restricted for contests that require any purchases, including products unrelated to alcohol, which falls outside the board's authority to regulate.

Add language that would allow a combination of food and alcoholic beverages to be offered at a discounted price by an on-premises licensee during the permitted time for a happy hour. ABC reports that this change reflects current practice and that such discounts may already be offered in some places.

Add language that prohibits indoor advertising materials from being illuminated, except for back bar pedestals that are allowed to contain advertising regarding spirits. Currently, this language appears in similar form in 3VAC5-20-20 B.

3VAC5-20-20: Advertising; interior; retail licenses. This section would be entirely repealed because it is redundant to § 4.1-216.1 of the Code of Virginia.⁶ Currently, this section contains a definition of "advertising materials" that is also found in § 4.1-216.1 A of the Code of Virginia. It also specifies the advertising materials used by retail licensees, which is also in § 4.1-216.1 C of the Code of Virginia. A stipulation regarding illuminated indoor advertising materials would be moved to 3VAC5-20-10.

3VAC5-20-30: Advertising; exterior. Eliminate language in the exterior advertising section of the regulation that ABC states is redundant to § 4.1-112.2 of the Code of Virginia. Delete language that prohibits alcoholic beverage manufacturers, importers, or wholesale licensees from selling, renting, loaning, or giving any billboard placements for outdoor alcoholic beverage advertising, or "in any other way confer on any retail licensee anything of value that constitutes outdoor alcoholic beverage advertising." The "billboard placement" and "any other way or anything of value" language would be moved to the Tied-House regulation (3VAC5-30-80) and replaced by a reference to "materials except for items permitted by 3VAC5-30-60 and 3VAC5-30-80."⁷

Repeal language that prohibits alcoholic beverage manufacturers, importers, or wholesale licensees from engaging in cooperative advertising on behalf of retail licensees. Such activity is already prohibited by 3VAC5-30-80.

3VAC5-20-60: Advertising; novelties and specialties. This section would be repealed entirely. These requirements would be added as 3VAC5-30-100 because the board believes they more properly belong in the regulation governing tied-house requirements.

3VAC5-20-90: Advertising; coupons. Specify that consumer submitted refund coupons may not be honored for "on-premises consumption" at retail outlets or state government stores. The current regulation does not contain the phrase "on-premises consumption," and ABC indicates that it is necessary in order to prevent individuals who have over-consumed from driving.

3VAC5-20-100: Advertising; sponsorship of public events; restrictions and conditions. Update the cross-references to the definition of advertising materials in 3VAC5-30. Separate the provisions for manufacturers and wholesalers to clarify that manufacturers may sponsor public events and that wholesalers may only cosponsor charitable events with manufacturers.

Estimated Benefits and Costs. The proposed amendments largely serve to update the regulation to reflect current practice and remove redundant or obsolete language. The proposed amendments would benefit the public to the extent that restrictions on advertising to young adults and the use of refund coupons lowers the risk of underage drinking or excessive drinking. The loosening of restrictions with respect to athletes and athletic teams could benefit manufacturers that wish to use more representations of athletes in their advertising in Virginia. The proposed amendments may generate some losses to entities that engage in advertising if they had already invested in advertising materials that specifically targeted people 18 to 21 years of age. Given that these changes were broadly supported by a number of stakeholders, it is unlikely that any manufacturer, importer, wholesaler, or retailer engaging in advertising would face significant costs or adverse economic impact as a result of these changes.

Businesses and Other Entities Affected. The proposed amendments potentially affect ABC's approximate 20,892 licensees⁸ who manufacture, distribute, or sell and serve alcoholic beverages in the Commonwealth, and other interested parties. Only licensees and other entities that engage in advertising would be affected by the changes to this chapter.

The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁹ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.¹⁰ The proposed amendments do not appear to increase net costs or reduce benefit. Thus, no adverse impact is indicated.

Small Businesses¹¹ Affected.¹² The proposed amendments do not appear to adversely affect small businesses.

Localities¹³ Affected.¹⁴ The proposed amendments neither disproportionally affect any particular localities, nor affect costs for local governments.

Projected Impact on Employment. The proposed amendments do not appear to affect total employment.

Effects on the Use and Value of Private Property. The proposed amendments do not substantively affect the use and value of private property. The proposed amendments do not affect real estate development costs.

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¹Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² See https://law.lis.virginia.gov/vacode/title4.1/chapter1/section4.1-111/ and https://law.lis.virginia.gov/vacode/ title4.1/chapter1/section4.1-112.2/, respectively.

³ See https://law.lis.virginia.gov/vacode/title4.1/chapter1/section4.1-113/.

⁴ See https://townhall.virginia.gov/L/Meetings.cfm?BoardID=2&time=Past. ABC provided a list of external stakeholders; although all stakeholders may not have attended every meeting, the meetings were spent conducting a line-by-line review of the regulations, and the proposed changes reflect the board's decisions after considering stakeholder input.

⁵ ABC explained that the law currently treats cider the same way as beer for all purposes except taxes, where cider is treated the same as wine.

⁶ See https://law.lis.virginia.gov/vacode/title4.1/chapter2/section4.1-216.1/.

⁷ The board is concurrently amending 3VAC5-30 to incorporate this language in 3VAC5-30-80. See https://townhall.virginia.gov/l/viewstage.cfm?stageid=10230 for the proposed changes to that regulation.

⁸ Data Source: ABC.

⁹ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

¹⁰ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

¹¹ Pursuant to § 2.2-4007.04, 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."

¹² If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

¹³ "Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

¹⁴ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency's Response to Economic Impact Analysis: The Virginia Alcoholic Beverage Control Authority concurs with the majority of the Department of Planning and Budget's economic analysis; however, the authority does take exception to a statement mentioned by the analyst in the section entitled "Estimated Benefits and Costs." The analyst states, "The proposed amendments may generate some losses to entities that engage in advertising if they had already invested in advertising materials that specifically targeted people 18 to 21 years of age." The analyst's assessment assumes that there are members of the alcohol industry actively engaging in advertising to individuals older than 18 years of age yet younger than 21 years of age who cannot lawfully purchase, possess, or consume alcohol (§§ 4.1-304 and 4.1-305 of the Code of Virginia). The authority does not agree with taking into consideration the actions of entities that would promote violating the law in assessing the economic impact of the proposed regulations.

Summary:

The proposed amendments revise provisions surrounding outdoor advertising of alcoholic beverages, remove language that is duplicative or redundant, and align the regulation with current industry practices.

3VAC5-20-10. Advertising; generally; cooperative advertising; federal laws; cider; restrictions.

A. All alcoholic beverage advertising is permitted in this the Commonwealth except that which is prohibited or otherwise limited or restricted by regulation of the board Virginia Alcoholic Beverage Control Authority (authority). Any editorial or other reading matter in any periodical, publication, or newspaper for the publication of which no money or other valuable consideration is paid or promised, directly or indirectly, by or for the benefits of any permittee or licensee does not constitute advertising.

B. Advertising of cider, as defined in § 4.1-213 of the Code of Virginia, shall conform to the requirements for advertising beer.

C. B. The board authority may issue a permit authorizing a variance from any of its advertising regulations for good cause shown.

D. C. No advertising shall contain any statement, symbol, depiction, or reference that:

1. Would tend to induce minors persons younger than 21 years of age to drink, or would tend to induce persons to consume to excess;

2. Is obscene or is suggestive of any illegal activity;

3. Incorporates the use of any present or former athlete or athletic team or implies that the product enhances athletic prowess; except that, persons granted a license to sell wine or beer may display within their licensed premises point-of-sale advertising materials that incorporate the use of any present or former professional athlete or athletic team, provided that such advertising materials: (i) otherwise comply with the applicable regulations of the appropriate federal agency and (ii) do not depict any athlete consuming or about to consume alcohol prior to or while engaged in an athletic activity, do not depict an athlete consuming alcohol while the athlete is operating or about to operate a motor vehicle or other machinery, and do not imply that the alcoholic beverage so advertised enhances athletic prowess Implies that the product enhances athletic prowess, depicts any athlete consuming or about to consume alcohol prior to or while engaged in an athletic activity, or depicts an athlete consuming alcohol while the athlete is operating or about to operate a motor vehicle or other machinery;

4. Is false or misleading in any material respect;

5. Implies or indicates, directly or indirectly, that the product is government endorsed by the use of flags, seals, or other insignia or otherwise;

6. Makes any reference to the intoxicating effect of any alcoholic beverages;

7. Constitutes or contains a contest or sweepstakes where a purchase of alcoholic beverages is required for participation; or

8. Constitutes or contains an offer to pay or provide anything of value conditioned on the purchase of alcoholic beverages, except for (i) a combination of food and alcoholic beverages offered at a discounted price by an on-premises licensee during the permitted hours for a happy hour pursuant to 3VAC5-50-160 or (ii) refund coupons and combination packaging. Any such combination packaging shall be limited to packaging provided by the manufacturer that is designed to be delivered intact to the consumer.

E. D. The board authority shall not regulate advertising of nonalcoholic beer or nonalcoholic wine so long as (i) a reasonable person by common observation would conclude that the advertising clearly does not represent any advertisement for alcoholic beverages and (ii) the advertising prominently states that the product is nonalcoholic.

E. Interior advertising materials may not be illuminated, except for back bar pedestals upon which advertising regarding spirits may appear.

3VAC5-20-20. Advertising; interior; retail licensees. (Repealed.)

A. As used in this section, the term "advertising materials" means any tangible property of any kind which utilizes words or symbols making reference to any brand or manufacturer of alcoholic beverages; except when used in the advertisement of nonalcoholic beer or nonalcoholic wine in accordance with 3VAC5-20-10 E.

B. Retail licensees may use any advertising materials having a wholesale value of not more than $250 per item that comply with 3VAC5-20-10 inside licensed retail establishments. Advertising materials may not be illuminated, except for back bar pedestals upon which advertising matter regarding spirits may appear.

3VAC5-20-30. Advertising; exterior.

Outdoor alcoholic beverage advertising shall comply with 3VAC5-20-10 and shall be limited as follows:

1. No outdoor alcoholic beverage advertising shall depict persons consuming alcoholic beverages, use cartoon characters in any way, or use persons who have not attained the minimum drinking age are younger than 21 years of age as models or actors.

2. No outdoor alcoholic beverage advertising shall be placed in violation of § 4.1-112.2 of the Code of Virginia.

3. No outdoor alcoholic beverage advertising shall be placed on property zoned exclusively for agricultural or residential uses, or on unzoned property.

4. All outdoor alcoholic beverage advertising must also comply with the provisions of Chapter 12 (§ 33.2-1200 et seq.) of Title 33.2 of the Code of Virginia and the regulations of the Virginia Department of Transportation promulgated pursuant thereto.

5. 2. No alcoholic beverage manufacturer, importer, or wholesale licensee may sell, rent, lend, buy for, or give to any retail licensee any outdoor alcoholic beverage advertising, any billboard placements for such advertising, or in any other way confer on any retail licensee anything of value that constitutes outdoor alcoholic beverage advertising materials, except for items permitted by 3VAC5-30-60 and 3VAC5-30-80.

6. No alcoholic beverage manufacturer, importer, or wholesale licensee may engage in cooperative advertising, as defined in 3VAC5-30-80, on behalf of any retail licensee.

7. 3. No alcoholic beverage manufacturer or importer may require a wholesale licensee to place outdoor alcoholic beverage advertising or exercise control over the funds of a wholesale licensee for any purpose, including but not limited to the purchase of outdoor alcoholic beverage advertising.

3VAC5-20-60. Advertising; novelties and specialties. (Repealed.)

Distribution of novelty and specialty items, including wearing apparel, bearing alcoholic beverage advertising, shall be subject to the following limitations and conditions:

1. Items not in excess of $10 in wholesale value may be given away;

2. Manufacturers, importers, bottlers, brokers, wholesalers or their representatives may give licensed retailers items not in excess of $10 in wholesale value in quantities equal to the number of employees of the retail establishment present at the time the items are delivered. Thereafter, such employees may wear or display the items on the licensed premises. Neither manufacturers, importers, bottlers, brokers, wholesalers or their representatives may give such items to patrons on the premises of retail licensees; however, manufacturers or their authorized representatives other than wholesalers conducting tastings pursuant to the provisions of § 4.1-201.1 of the Code of Virginia may give no more than one such item to each consumer provided a sample of alcoholic beverages during the tasting event; and such items bearing moderation and responsible drinking messages may be displayed by the licensee and his employees on the licensed premises and given to patrons on such premises as long as any references to any alcoholic beverage manufacturer or its brands are subordinate in type size and quantity of text to such moderation message;

3. Items in excess of $10 in wholesale value may be donated by distilleries, wineries and breweries only to participants or entrants in connection with the sponsorship of conservation and environmental programs, professional, semi-professional or amateur athletic and sporting events subject to the limitations of 3VAC5-20-100, and for events of a charitable or cultural nature;

4. Items may be sold by mail upon request or over-the-counter at retail establishments customarily engaged in the sale of novelties and specialties, provided they are sold at the reasonable open market price in the localities where sold;

5. Wearing apparel shall be in adult sizes;

6. Point-of-sale order blanks, relating to novelty and specialty items, may be provided by beer and wine wholesalers to retail licensees for use on their premises, if done for all retail licensees equally and after obtaining the consent, which may be a continuing consent, of each retailer or his representative. Wholesalers may not be involved in the redemption process; and

7. Novelty and specialty items bearing alcoholic beverage advertising may not be distributed to persons younger than the legal drinking age.

3VAC5-20-90. Advertising; coupons.

A. "Normal retail price" shall mean the average retail price of the brand and size of the product in a given market and not a reduced or discounted price.

B. Coupons may be advertised in accordance with the following conditions and restrictions:

1. Manufacturers or importers of spirits, wine, and beer may use only consumer submitted refund, not instantly redeemable discount, coupons. The coupons may not exceed 50% of the normal retail price and may not be honored for on-premises consumption at a retail outlet or state government store but shall be submitted directly to the manufacturer or importer or its designated agent. Such agent may not be a wholesaler or retailer of alcoholic beverages. Consumer proof of purchase (, such as a dated, retail specific retail-specific receipt), is required for redemption of all consumer coupons. Coupons are permitted in the print media, via the Internet, by direct mail or electronic mail email to consumers, or as part of, or attached to, the package. Manufacturers, importers, bottlers, brokers, wholesalers, and their representatives may provide coupon pads to retailers for use by retailers on their premises if done for all retail licensees equally and after obtaining the consent, which may be a continuing consent, of each retailer or retailer's representative. Wholesale licensees may attach refund coupons to the package if done for all retail licensees equally and after obtaining the consent, which may be a continuing consent, for each retailer or retailer's representative.

2. Manufacturers or importers offering refund coupons on spirits and wine sold in state government stores shall notify the board at least 15 days in advance of the issuance of the coupons of its amount, its expiration date, and the area of the Commonwealth in which it will be primarily used if not used statewide.

3. Wholesale licensees are not permitted to offer coupons.

4. Retail licensees may offer coupons, including their own discount or refund coupons, on wine and beer sold for off-premises consumption only. Retail licensees may offer their own coupons in the print media, at the point-of-sale point of sale, or by direct mail to consumers.

5. No retailer may be paid a fee by manufacturers or wholesalers of alcoholic beverages for display or use of coupons, and the name of the retail establishment may not appear on any refund coupons offered by manufacturers. No manufacturer or wholesaler may furnish any coupons or materials regarding coupons to retailers that are customized or designed for discount or refund by the retailer.

6. Retail licensees or employees thereof may not receive refunds on coupons obtained from the packages before sale at retail.

7. No coupons may be honored for any individual younger than the legal age for purchase.

3VAC5-20-100. Advertising; sponsorship of public events; restrictions and conditions.

A. Generally. Alcoholic beverage advertising in connection with the sponsorship of public events shall be limited to sponsorship of conservation and environmental programs,; professional, semi-professional, or amateur athletic and sporting events; and events of a charitable or cultural nature by distilleries, wineries, breweries, importers, and bottlers.

B. Restrictions and conditions.

1. Any sponsorship on a college, high school, or younger age level is prohibited;

2. Cooperative advertising, as defined in 3VAC5-30-80, is prohibited;

3. Awards or contributions of alcoholic beverages are prohibited;

4. Advertising of alcoholic beverages shall conform in size and content to the other advertising concerning the event and advertising regarding charitable events shall place primary emphasis on the charitable fund raising fundraising nature of the event;

5. A charitable event is one held for the specific purpose of raising funds for a charitable organization which that is exempt from federal and state taxes;

6. Advertising in connection with the sponsorship of an event may be in any media, such as print media, the Internet or other electronic means, television, or radio; by direct mail or flyers fliers to consumers; on programs, tickets, and schedules for the event; on the inside of licensed or unlicensed retail establishments; and at the site of the event;

7. Advertising materials as defined in 3VAC5-30-60 G 3VAC5-30-80 M, table tents as defined in 3VAC5-30-60 H A, and canisters are permitted;

8. Prior written notice shall be submitted to the board Virginia Alcoholic Beverage Control Authority describing the nature of the sponsorship and giving the date, time, and place of it; and

9. Manufacturers may sponsor public events and wholesalers may only cosponsor charitable events; and

10. Wholesalers may only cosponsor charitable events with manufacturers.