§ 1. Construction
This title is based on the taxing power and the police power of the state, and is for the protection of the public welfare, good order, health, peace, safety and morals of the people of the state, and all of its provisions shall be liberally construed for the accomplishment of the purposes set forth herein.
§ 2. Definitions
The following words as used in this title, unless a contrary meaning is required by the context, shall have the following meaning:
(1) "Alcohol": the product of distillation of spirits or any fermented malt or vinous beverage, including ethyl alcohol and nonpotable alcohol.
(2) "Boat": a vessel suitably equipped and operated for the transportation of passengers in interstate commerce.
(3) "Bottler": any person that bottles malt, vinous, or spirituous beverages for sale or for distribution in this state.
(4) "Bottler's license": the license granted by the liquor control board permitting a bottler to bottle for sale and to distribute and sell at wholesale malt or vinous beverages.
(5) "Cabaret license": a first class license or first and third class licenses where the business is devoted primarily to providing entertainment, dancing, and the sale of alcoholic beverages to the public and not the service of food. The holder of a "cabaret license" shall serve food at all times when open for business and shall have adequate and sanitary space and equipment for preparing and serving food. However, the gross receipts from the sale of food shall be less than the combined receipts from the sales of alcoholic beverages, entertainment, and dancing in the prior reporting year. All laws and regulations pertaining to a first class license or first and third class licenses shall apply to the first class or first and third class cabaret licenses.
(6) "Caterer's license": a license issued by the liquor control board authorizing the holder of a first class license or first and third class licenses for a cabaret, restaurant, or hotel premises to serve malt or vinous beverages or spirituous liquors at a function located on premises other than those occupied by a first, first and third, or second class licensee to sell alcoholic beverages.
(7) "Club": an unincorporated association or a corporation authorized to do business in this state, that has been in existence for at least two consecutive years prior to the date of application for license under this title and owns, hires, or leases a building or space in a building that is suitable and adequate for the reasonable and comfortable use and accommodation of its members and their guests and contains suitable and adequate kitchen and dining room space and equipment implements and facilities. A club may be used or leased by a nonmember as a location for a social event as if it were any other licensed commercial establishment. Such club shall file with the liquor control board, before May 1 of each year, a list of the names and residences of its members and a list of its officers. Its affairs and management shall be conducted by a board of directors, executive committee, or similar body chosen by the members at its annual meeting, and no member or any officer, agent
, or employee of the club shall be paid, or directly or indirectly receive, in the form of salary or other compensation, any profits from the disposition or sale of alcoholic liquors to the members of the club or its guests introduced by members beyond the amount of such salary as may be fixed and voted at annual meetings by the members or by its directors or other governing body, and as reported by the club to the liquor control board. An auxiliary member of a club may invite one guest at any one time. An officer or director of a club may perform the duties of a bartender without receiving any payment for that service, provided the officer or director is in compliance with the requirements of this title that relate to service of alcoholic beverages. An officer, member, or director of a club may volunteer to perform services at the club other than serving alcoholic beverages, including seating patrons and checking identification, without receiving payment for those services. An officer
, member, or director of a club who volunteers his or her services shall not be considered to be an employee of the club. A bona fide unincorporated association or corporation whose officers and members consist solely of veterans of the armed forces of the United States, or a subordinate lodge or local chapter of any national fraternal order, and which fulfills all requirements of this subdivision, except that it has not been in existence for two years, shall come within the terms of this definition six months after the completion of its organization. A club located on and integrally associated with at least a regulation nine-hole golf course need only be in existence for six months prior to the date of application for license under this title.
(8) "Control commissioners": the commissioners appointed under section 166 of this title.
(9) "Dining car": a railroad car on which meals are prepared and served.
(10) "First class license": a license granted by the control commissioners permitting the licensee to sell malt or vinous beverages to the public for consumption only on the premises for which the license is granted.
(11) "Hotel" has the same meaning as in 32 V.S.A. § 9202(3) and as determined by the liquor control board. A hotel that places a minibar in any room of a registered guest shall assure that the minibar is locked and that access to the minibar is restricted to guests of legal drinking age.
(12) "Commissioner of liquor control": the executive officer of the liquor control board appointed under the provisions of this title.
(13) "Liquor control board": the board of control appointed under the provisions of this title.
(14) "Malt beverages": all fermented beverages of any name or description manufactured for sale from malt, wholly or in part, or from any substitute therefor, known as beer, porter, ale, and stout, containing not less than one percent nor more than 16 percent of alcohol by volume at 60 degrees Fahrenheit. However, if such a beverage has an alcohol content of more than six percent and has a terminal specific gravity of less than 1.009, it shall be deemed to be a spirit and not a malt beverage. The holder of the certificate of approval or the manufacturer shall certify to the liquor control board the terminal specific gravity of the beverage when the alcohol content is more than six percent.
(15) "Manufacturer's or rectifier's license": a license granted by the liquor control board that permits the holder to manufacture or rectify spirituous liquors for export and sale to the liquor control board, or malt beverages and vinous beverages for export and sale to bottlers or wholesale dealers. This license permits a manufacturer of vinous beverages to receive from another manufacturer licensed in or outside this state bulk shipments of vinous beverages to rectify with the licensee's own product, provided that the vinous beverages produced by a Vermont manufacturer may contain no more than 25 percent imported vinous beverage. The liquor control board may grant to a licensed manufacturer or rectifier a first class restaurant or cabaret license or first and third class restaurant or cabaret license permitting the licensee to sell alcoholic beverages to the public only at the manufacturer's premises, which for the purposes of a manufacturer of malt beverages, includes up t
o two licensed establishments that are located on the contiguous real estate of the holder of the manufacturer's license, provided the manufacturer owns or has direct control over those establishments. A manufacturer of malt beverages who also holds a first class restaurant or cabaret license may serve to a customer malt beverage by the glass, not to exceed eight glasses at one time and not to exceed four ounces in each glass. The liquor control board may grant to a licensed manufacturer or a rectifier of malt beverages a second class license permitting the licensee to sell alcoholic beverages to the public anywhere on the manufacturer's or rectifier's premises. A licensed manufacturer or rectifier of vinous beverages may serve, with or without charge, at an event held on premises of the licensee or the vineyard property, spirits and vinous and malt beverages, provided the licensee gives the department written notice of the event, including details required by the department, at least
five days before the event. Any beverages not manufactured by the licensee and served at the event shall be purchased on invoice from a licensed manufacturer or wholesale dealer or liquor control board.
(16) "Person," as applied to licensees, means individuals who are citizens of the United States, partnerships composed of individuals, a majority of whom are citizens of the United States, and corporations organized under the laws of this or another state in which a majority of the directors are citizens of the United States and to limited liability companies organized under the laws of this or another state in which a majority of the members or managers are citizens of the United States.
(17) "Restaurant": a space in a suitable building, approved by the liquor control board, occupied, used, maintained, advertised, or held out to the public to be a place where food is served at all times when open for business and there are no sleeping accommodations. The space shall have adequate and sanitary kitchen and dining room capacity and the number and kinds of employees for preparing, cooking, and serving suitable food for guests and patrons as required by the liquor control board.
(18) "Retail dealer": any person who sells or distributes malt or vinous beverages to the public.
(19) "Second class license": a license granted by the control commissioners permitting the licensee to export vinous beverages and to sell malt or vinous beverages to the public for consumption off the premises for which the license is granted.
(20) "Spirits" or "spirituous liquors": beverages that contain more than one percent of alcohol obtained by distillation, by chemical synthesis, or through concentration by freezing; and vinous beverages containing more than 16 percent of alcohol; and all vermouths of any alcohol content; malt beverages containing more than 16 percent of alcohol or more than six percent of alcohol if the terminal specific gravity thereof is less than 1.009; in each case measured by volume at 60 degrees Fahrenheit.
(21) "Specialty beer": a malt beverage that contains more than eight percent alcohol and not more than 16 percent alcohol by volume at 60 degrees Fahrenheit.
(22) "Third class license": a license granted by the liquor control board permitting the licensee to sell spirituous liquors for consumption only on the premises for which the license is granted.
(23) "Vinous beverages": all fermented beverages of any name or description manufactured or obtained for sale from the natural sugar content of fruits, or other agricultural product, containing sugar, the alcoholic content of which is not less than one percent nor more than 16 percent by volume at 60 degrees Fahrenheit: except that all vermouths shall be purchased and retailed by and through the liquor control board as authorized in chapters 5 and 7 of this title.
(24) "Wholesale dealer": any person other than a bottler who buys malt, or vinous beverages for distribution to or resale to retail dealers or to agencies of the United States.
(25) "Wholesale dealer's license": the license granted by the liquor control board permitting the wholesale dealer to sell or distribute malt or vinous beverages as a wholesale dealer.
(26) "Minor": a person who has not attained the age of 21.
(27) "Special events permit": a permit granted by the liquor control board permitting a person holding a manufacturer's or rectifier's license to sell by the glass or by unopened bottle spirits, malt, or vinous beverages manufactured or rectified by the license holder at an event open to the public that has been approved by the local licensing authority. For the purposes of tasting only, the permit holder may distribute, with or without charge, beverages manufactured by the permit holder by the glass no more than two ounces per product and eight ounces total of malt or vinous beverages and no more than one ounce in total of spirits to each individual. No more than 36 special events' permits may be issued to a holder of a manufacturer's or rectifier's license during a year. A special event permit shall be valid for the duration of each public event or four days, whichever is shorter. Requests for a special events' permit, accompanied by the fee as required by subdivision 231(13
) of this title, shall be submitted to the department of liquor control at least five days prior to the date of the event. Each manufacturer or rectifier planning to attend a single special event under this permit may be listed on a single permit. However, each attendance at a special event shall count toward the manufacturer's or rectifier's 36 special-event-permit limitation.
(28) "Fourth class license" or "farmers' market license": the license granted by the liquor control board permitting a manufacturer or rectifier of malt or vinous beverages or spirits to sell by the unopened container and distribute, by the glass with or without charge, beverages manufactured by the licensee. No more than a combined total of ten fourth class and farmers' market licenses may be granted to a licensed manufacturer or rectifier. At only one fourth class license location, a manufacturer or rectifier of vinous beverages may sell by the unopened container and distribute by the glass, with or without charge, vinous beverages produced by no more than five additional manufacturers or rectifiers, provided these beverages are purchased on invoice from the manufacturer or rectifier. A manufacturer or rectifier of vinous beverages may sell its product to no more than five additional manufacturers or rectifiers. A fourth class licensee may distribute by the glass no more tha
n two ounces of malt or vinous beverage with a total of eight ounces to each retail customer and no more than one-quarter ounce of spirits with a total of one ounce to each retail customer for consumption on the manufacturer's premises or at a farmers' market. A farmers' market license is valid for all dates of operation for a specific farmers' market location.
(29) "Festival permit": a permit granted by the liquor control board permitting a person to conduct an event at which malt or vinous beverages, or both, are sold by the glass to the public, provided the event is approved by the local licensing authority. A festival permit holder may purchase invoiced volumes of malt or vinous beverages directly from a manufacturer or bottler, provided the manufacturer or bottler either holds a Federal Basic Permit or a Brewers Notice or evidence of licensure in a foreign country, satisfactory to the board, whichever applies. The invoiced volumes of malt or vinous beverages may be transported to the site and sold by the glass to the public by the permit holder or its employees and volunteers only during the event. A festival permit holder shall be subject to the provisions of this chapter, including section 240 of this title, and the rules of the board regarding the sale of the alcoholic beverages and shall pay the tax on the malt or vinous bev
erages as required by section 421 of this title. A person shall not be granted a festival permit more than four times in one year, and each permit shall be valid for no more than four consecutive days. A request for a festival permit shall be submitted to the department in a form required by the department at least 15 days prior to the festival and shall be accompanied by a permit fee as required by subdivision 231(14) of this title to be paid to the department.
(30) "Home-fermented beverages": malt or vinous beverages produced at home and not for sale.
(31) "Legal age": 21 years of age or older.
(32) "Art gallery or bookstore permit": a permit granted by the liquor control board permitting an art gallery or bookstore to conduct an event at which malt or vinous beverages or both are served by the glass to the public, provided that the event is approved by the local licensing authority. A permit holder may purchase malt or vinous beverages directly from a licensed retailer. A permit holder shall be subject to the provisions of this title and the rules of the board regarding the service of alcoholic beverages. A request for a permit shall be submitted to the department in a form required by the department at least five days prior to the event and shall be accompanied by the permit fee required by subdivision 231(a)(22) of this title.
(33) "Commercial catering license": A license granted by the board permitting a business licensed by the department of health as a commercial caterer and having a commercial kitchen facility in the home or place of business to sell malt, vinous, or spirituous liquors at a function previously approved by the local licensing authority. (Amended 1959, No. 329 (Adj. Sess.), §§ 33, 39(b), eff. March 1, 1961; 1961, No. 76; 1964, No. 1 (Sp. Sess.); 1971, No. 64, § 1; 1973, No. 34, § 3; 1975, No. 44, § 1, eff. April 15, 1975; 1979, No. 103 (Adj. Sess.), § 1, eff. April 2, 1980; No. 115 (Adj. Sess.), § 2; 1981, No. 137 (Adj. Sess.) § 1, eff. April 6, 1982; No. 139 (Adj. Sess.), § 1; 1985, No. 99 (Adj. Sess.), § 1; No. 159 (Adj. Sess.), § 1; 1987, No. 188 (Adj. Sess.), §§ 1, 2, eff. May 11, 1988; 1989, No. 138 (Adj. Sess.); 1991, No. 250 (Adj. Sess.); 1993, No. 46, § 3; 1993, No. 112 (Adj. Sess.), §§ 1, 2, eff. Feb. 18, 1994; No. 168 (Adj. Sess.), §§ 1, 2; 1995, No. 26, § 1; 1995, No. 6
9 (Adj. Sess.), § 1, eff. Feb. 15, 1996; No. 121 (Adj. Sess.), § 1; 1997, No. 50, § 46, eff. June 26, 1997; No. 61, § 210a, eff. June 26, 1997; 1997, No. 158 (Adj. Sess.), §§ 1, 4, 6; 1999, No. 111 (Adj. Sess.), § 1; 2001, No. 9, § 1,2; No. 25, § 1; 2001, No. 74 (Adj. Sess.), § 1; No. 143 (Adj. Sess.), § 7, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 62, eff. March 1, 2004; No. 102 (Adj. Sess.), § 1; 2005, No. 140 (Adj. Sess.), §§ 2, 5, 8, eff. May 10, 2006; 2007, No. 21, § 1, eff. May 10, 2007; 2007, No. 167 (Adj. Sess.), § 1; 2007, No. 210 (Adj. Sess.), § 1; 2009, No. 10, § 1, eff. May 5, 2009; 2009, No. 77 (Adj. Sess.), § 1, eff. April 13, 2010; No. 102 (Adj. Sess.), § 1, eff. May 11, 2010; 2011, No. 52, § 76, eff. May 27, 2011; No. 115 (Adj. Sess.), § 1.)
§ 3. Culinary arts students; exemptions from provisions of title
A student aged 18 or older who is enrolled in a postsecondary education culinary arts program, accredited by a commission recognized by the U.S. Department of Education, shall be exempt from the provisions of this title while attending classes that require the possession or consumption of alcoholic beverages. (Added 1985, No. 99 (Adj. Sess.) § 2.)
§ 4. Nonprofit organizations; wine and beer auctions; fundraising
(a) A nonprofit organization qualified for tax exempt status pursuant to Section 501(c) of the Internal Revenue Code, as amended, in the discretion of the commissioner, may auction vinous or malt beverages, or both, to the public without a license, provided that:
(1) Prior to the auction, the organization provides written notification of the auction accompanied by documentation of its nonprofit status satisfactory to the commissioner.
(2) The commissioner approves the organization's nonprofit qualifications and the organization's right to auction vinous or malt beverages.
(3) The profits from the auction sale of beverages are used solely for the expenses of the nonprofit organization to conduct the sale or for the nonprofit purposes of the organization.
(b) A person who donates vinous or malt beverages to a nonprofit organization for an auction under this section is not required to be licensed under this chapter.
(c) A licensee under this title may donate beverages to a nonprofit organization pursuant to this section, provided the licensee pays to the state all the taxes due as if the beverages had been sold in the course of the licensee's business.
(d) If an auction under this section is conducted on the premises of a licensee under this title, beverages donated for auction may be given and accepted without including the beverages on the licensee's invoice.
(e) A purchaser of beverages auctioned by a nonprofit organization pursuant to this section shall not be responsible for payment of any sales tax. (Added 2005, No. 40, § 1, eff. June 2, 2005.)