A. Any interested party who would be aggrieved by a decision of the board Authority upon any application or in a disciplinary proceeding may appear and be heard in person, or by duly authorized representative, and produce under oath evidence relevant and material to the matters in issue. Upon due notice a hearing may be conducted by telephone as provided in Part IV. Hearings may also be conducted virtually.

B. The interested parties will be expected to appear or be represented at the place and on the date of hearing or on the dates to which the hearing may be continued.

C. If an interested party fails to appear at a hearing, the hearing officer administrative law judge may proceed in his the interested party's absence and render a decision.

Oral or written argument, or both, may be submitted to and limited by the hearing officer administrative law judge. Oral argument is to be included in the stenographic report of the hearing.

Any individual, partnership, association or corporation who is a licensee or applicant for any license or any interested party shall have the right to be represented by counsel at any board Authority hearing for which he has received notice. The licensee, applicant or interested party shall not be required to be represented by counsel during such hearing. Any officer or director of a corporation may examine, cross-examine and question witnesses, present evidence on behalf of the corporation, draw conclusions and make arguments before the hearing officers administrative law judges.

Communications regarding hearings before hearing officers administrative law judges upon licenses and applications for licenses should be addressed to the Chief Hearing Officer Clerk, Hearings, and Appeals, and Judicial Services Division.

The board Authority, in its discretion and for good cause shown, may arrange a hearing upon the complaint of any aggrieved party(s) against the continuation of a license. The complaint shall be in writing directed to the Director Chief of the, Bureau of Law Enforcement Operations, setting forth the name and post office address of the person(s) against whom the complaint is filed, together with a concise statement of all the facts necessary to an understanding of the grievance and a statement of the relief desired.

Motions to continue a hearing will be granted as in actions at law. Requests for continuances should be addressed to the Chief Hearing Officer Administrative Law Judge, Hearings, and Appeals, and Judicial Services Division, or the administrative law judge who will preside over the hearing.

A. Initial decisions. The decision of the hearing officer administrative law judge shall be deemed the initial decision, shall be a part of the record and shall include:

1. A statement of the hearing officer's administrative law judge's findings of fact and conclusions, as well as the reasons or bases therefor, upon all the material issues of fact, law or discretion presented on the record; and

2. The appropriate rule, order, sanction, relief or denial thereof as to each such issue.

B. Summary decisions. At the conclusion of a hearing, the hearing officer administrative law judge, in histhe administrative law judge's discretion, may announce the initial decision to the interested parties.

C. Notice. At the conclusion of any hearing, the hearing officer administrative law judge shall advise interested parties that the initial decision will be reduced to writing and the notice of such decision, along with notice of the right to appeal to the board Authority, will be mailed to them or their representative and filed with the board Authority in due course. (See 3VAC5-10-240 for Appeals).

D. Prompt filing. The initial decision shall be reduced to writing, mailed to interested parties at the address on record with the board Authority by certified mail, return receipt requested, and by regular mail, and filed with the board Authority as promptly as possible after the conclusion of the hearing or the expiration of the time allowed for the receipt of additional evidence.

E. Request for early or immediate decision. Where the initial decision is deemed to be acceptable, an interested party may file, either orally before the hearing officer administrative law judge or in writing, a waiver of his interested party's right of appeal to the board Authority and request early or immediate implementation of the initial decision. The board Authority or hearing officer administrative law judge may grant the request for early or immediate implementation of the decision by causing issuance or surrender of the license and prompt entry of the appropriate order.

F. Timely review. The board Authority shall review the initial decision and may render a proposed decision, which may adopt, modify or reject the initial decision unless immediate implementation is ordered. In any event, the board Authority shall issue notice of any proposed decision, along with notice of right to appeal, within the time provided for appeals as stated in 3VAC5-10-240.

Cases will be placed upon the docket in the order in which they mature except that, for good cause shown or for reasons appearing to the board Authority or to the chief hearing officer Chief Administrative Law Judge, the order may be varied.

A. Generally. All relevant and material evidence shall be received, except that:

1. The rules relating to privileged communications and privileged topics shall be observed; and

2. Secondary evidence of the contents of a document shall be received only if the original is not readily available. In deciding whether a document is readily available the hearing officer administrative law judge shall balance the importance of the evidence against the difficulty of obtaining it, and the more important the evidence the more effort should be made to have the original document produced.

B. Cross-examination. Subject to the provisions of subsection A of this section, any interested party shall have the right to cross-examine adverse witnesses and any agent or subordinate of the board Authority whose report is in evidence and to submit rebuttal evidence except that:

1. Where the interested party is represented by counsel, only counsel shall exercise the right of cross-examination;

2. Where there is more than one interested party, only counsel or other representatives of such parties the other interested parties shall exercise the right of cross-examination; and

3. Where there is more than one group of interested parties present for the same purpose, only counsel or other representative of such groups interested party designated to represent each group shall exercise the right of cross-examination. If the hearing officer administrative law judge deems it necessary, in order to expedite the proceedings, a merger of such groups shall be arranged.

C. Cumulative testimony. The introduction of evidence which is cumulative, corroborative, or collateral shall be avoided. The hearing officer administrative law judge may limit the testimony of any witness which is judged to be cumulative, corroborative, or collateral; however, the interested party offering such testimony may make a short avowal of the testimony which would be given and, if the witness asserts that such avowal is true, this avowal shall be made a part of the stenographic report.

D. Subpoenas, depositions and request for admissions. Subpoenas, depositions de bene esse and requests for admissions may be taken, directed and issued in accordance with §§ 4.1-103 10 and 9-6.14:13 of the Code of Virginia.

E. Stenographic report. All evidence, stipulations and argument in the stenographic report which are relevant to the matters in issue shall be deemed to have been introduced for the consideration of the board administrative law judge or the Authority.

F. Stipulations. Insofar as possible, interested parties will be expected to stipulate as to any facts involved. Such stipulations shall be made a part of the stenographic report.

A. Hearings before the hearing officer administrative law judge shall be held, insofar as practicable, at the county seat of the county in which the establishment of the applicant or licensee is located, or, if the establishment is located within the corporate limits of any city, then in such city. However, if it is located in a county or city within a metropolitan area in which the board Authority maintains a hearing room in a district office, such hearings may be held in such hearing room. Notwithstanding the above, hearing officers administrative law judges may conduct hearings at locations convenient to the greatest numbers of persons in order to expedite the hearing process. Hearings may also be held telephonically or virtually.

B. At any hearing held by a hearing officer an administrative law judge, any person hindering the orderly conduct or decorum of the hearing shall be guilty of a violation of this regulation and shall be subject to the penalty prescribed by § 4.1-349 of the Code of Virginia.

A. Hearing officers Administrative law judges are charged with the duty of conducting fair and impartial hearings and of maintaining order in a form and manner consistent with the dignity of the board Authority.

B. Each hearing officer administrative law judge shall have authority, subject to the published rules of the board Authority and within its powers, to:

1. Administer oaths and affirmations;

2. Issue subpoenas as authorized by law;

3. Rule upon offers of proof and receive relevant and material evidence;

4. Take or cause depositions and interrogatories to be taken, directed and issued;

5. Examine witnesses and otherwise regulate the course of the hearing;

6. Hold conferences for the settlement or simplification of issues by consent of interested parties;

7. Dispose of procedural requests and similar matters;

8. Amend the issues or add new issues provided the applicant or licensee expressly waives notice thereof. The waiver shall be made a part of the stenographic report of the hearing;

9. Submit initial decisions to the board Authority and to other interested parties or their representatives; and

10. Take any other action authorized by the rules of the board Authority.;

11. Conduct mediation between interested parties;

12 Require the designation of an interested person to act as representative for proceedings involving groups of individuals present for the same purpose.

As used in this chapter, "interested parties" shall mean the following persons:

1. The applicant;

2. The licensee;

3. Persons who would be aggrieved by a decision of the board Authority; and

4. For purposes of appeal pursuant to 3VAC5-10-240, interested parties shall be only those persons who appeared at and asserted an interest in the hearing before a hearing officer an administrative law judge.

Where in this chapter reference is made to "licensee," the term likewise shall be applicable to a permittee (one who holds or held a permit issued by the Authority) or a designated manager to the extent that this chapter are is not inconsistent with the statutes and regulations relating to such persons.

Motions or requests for ruling made prior to the hearing before a hearing officer an administrative law judge shall be in writing, addressed to the Chief Hearing Officer Administrative Law Judge, Hearings, and Appeals, and Judicial Services Division, and shall state with reasonable certainty the grounds therefor. Argument upon such motions or requests will not be heard without special leave granted by the hearing officer administrative law judge who will preside over the hearing.

A. Generally. The board Authority, or its designee, may offer to resolve disciplinary cases when the nature of the proceeding and public interest permit. In appropriate cases, the board Authority or its designee will extend an offer for a consent settlement to the licensee.

B. Who may accept. The licensee or his the licensee's attorney may accept an offer of consent settlement. If the licensee is a corporation, only an attorney or an officer, director or majority stockholder of the corporation may accept an offer of consent settlement.

C. How to accept. The licensee shall return the properly executed consent order along with the payment in full of any monetary penalty no later than 21 calendar days from the date of mailing by the board Authority. Failure to respond within the time period will result in a withdrawal of the offer by the agency and a formal hearing will be held on the date specified in the notice of hearing.

D. Effect of acceptance. Acceptance of the consent settlement offer shall constitute an admission of the alleged violation of the A.B.C. laws or regulations and will result in a waiver of the right to a formal hearing and the right to appeal or otherwise contest the charges. The offer of consent settlement is not negotiable; however, the licensee is not precluded from submitting an offer in compromise under 3VAC5-10-160.

E. Board Authority review. Prior to extending an offer of consent settlement to the licensee, the board Authority or its designee may reject any proposed settlement which is contrary to law or policy or which, in its sole discretion, is not appropriate.

F. Record. Unaccepted offers of consent settlement will become a part of the record only after completion of the hearing process.

A. Following notice of a disciplinary proceeding, a licensee may be afforded opportunity for the submission of an offer in compromise in lieu of suspension or in addition thereto, or in lieu of revocation of his the license, where in the discretion of the board Authority, the nature of the proceeding and the public interest permit. Such offer should be addressed to the chief hearing officer administrative law judge. Acceptance of the offer in compromise shall constitute an admission of the alleged violation of the A.B.C. laws or regulations, and shall result in a waiver of the right to a formal hearing and the right to appeal or otherwise contest the charges. The reason for the acceptance of such an offer shall be made a part of the record of the proceeding. Unless good cause be shown, continuances for purposes of considering an offer in compromise will not be granted. Offers in compromise may be submitted anytime following notice of a disciplinary proceeding and before the conclusion of an appeal hearing Authority issues a final decision in an appeal. Any such offer may not be accepted at the informal conference and no offer shall be submitted after the conclusion of the appeal hearing. The board Authority may waive any provision of this section for good cause shown.

B. Following notice of a disciplinary proceeding or objection from the Authority to the issuance of a license, a licensee or applicant in conjunction with the Authority may agree to a negotiated resolution in lieu of a suspension or in addition thereto, or in lieu of revocation of the license, or in lieu of a denial of the application, where in the discretion of the Authority, the nature of the proceeding, and the public interest permit. Such negotiation shall be handled by the interested party and the Authority. Acceptance of a negotiated resolution may constitute an admission of the alleged violation of the A.B.C. laws or regulations and shall result in a waiver of the right to a formal hearing and the right to appeal or otherwise contest the charges or objections. Unless good cause be shown, continuances for purposes of finalizing a negotiated resolution will not be granted. Negotiated resolutions may be submitted anytime following notice of a disciplinary proceeding or objections hearing, and before the Authority issues a final decision in an appeal.

A. The certified transcript of testimony, argument and exhibits, together with all papers and requests filed in the proceeding, shall constitute the exclusive record of the initial decision.

B. Upon due application made to the chief hearing officer administrative law judge, copies of the record of a hearing shall be made available to parties entitled thereto at a fee established by the board Authority.

A rehearing before a hearing officer an administrative law judge shall not be held in any matter unless it be affirmatively shown that relevant and material evidence, which ought to produce an opposite result on rehearing, is available, is not merely cumulative, corroborative or collateral, and could not have been discovered before the original hearing by the use of ordinary diligence; provided, that the board Authority, in its discretion, may cause a rehearing to be held before a hearing officer an administrative law judge in the absence of the foregoing conditions, as provided in 3VAC5-10-290.

If any witness subpoenaed to appear on behalf of the board Authority shall testify in a hearing before a hearing officer an administrative law judge on complaints against a licensee as to any violation in which the witness, as a licensee or an applicant, has participated, such testimony shall not be used against him the witness nor shall the board Authority take any administrative action against him the witness for the offense to which he the witness testifies.

Upon request of any interested party, the chief hearing officer administrative law judge, or a hearing officer an administrative law judge is authorized to issue subpoenas requiring the attendance of witnesses and the production of records, memoranda, papers and other documents at a hearing before a hearing officer an administrative law judge.

A. Interested parties shall arrange to have their witnesses present at the time and place designated for the hearing.

B. Upon request of any party entitled to cross-examine witnesses, as set forth in 3VAC5-10-90 B, the hearing officer administrative law judge may separate the witnesses, including agents of the board Authority.

C. A person subpoenaed as a witness to appear on behalf of the board Authority shall be entitled to the same allowance for expenses as witnesses for the Commonwealth in criminal cases.

A. A pre-hearing conference will be conducted when an applicant for a license or a licensee who is the subject of a disciplinary proceeding does not waive its right to such a conference. A waiver may be verbal or in writing. Unless the parties are advised otherwise, the agency Authority will automatically waive the pre-hearing conference when the applicant or licensee does so. When the applicant or licensee is offered a pre-hearing conference and fails to respond within 10 calendar days after the date of such offer, the pre-hearing conference will be deemed to be waived.

B. The pre-hearing conference will serve as a vehicle to acquaint the interested party, in a general way, with the nature of the charges or objections, the evidence in support thereof and to hear any matters relevant thereto presented by the interested parties and to explore whether (i) administrative proceedings or objections should be terminated or (ii) the case should proceed to formal hearing and stipulations can be reached. The conference will be open to the public, but participation will be limited to the interested parties, their attorneys-at-law or other qualified representatives, and designated board Authority representatives. The pre-hearing conference may be held virtually or telephonically, and at least five days prior to the formal hearing. The conference may be held, when practical, at the county or city in which the establishment of the applicant or licensee is located. Reasonable notice of administrative charges or objections and the date, time, and place of the conference shall be given to the participants. The failure of the applicant or licensee to appear at a scheduled conference will be deemed a waiver of the pre-hearing conference. The pre-hearing conference will not be recorded. Sworn testimony will not be taken, nor will subpoenas be issued. Any initial decision will include a summary of the pre-hearing conference.

The Director, Chief of the Bureau of Law Enforcement Operations or his a designee may (i) represent the Bureau of Law Enforcement Operations before the board Authority or any hearing officer administrative law judge; (ii) petition the board Authority for modification of the hearing officer's administrative law judge's decision; or (iii) request a ruling on other motions as may be necessary. This authority does not extend to complaints under the Franchise Acts.

A. An interested party may appeal to the board Authority an adverse initial decision, including the findings of fact and the conclusions, of a hearing officer an administrative law judge or a proposed decision, or any portion thereof, of the board Authority provided a request therefor in writing identifying any alleged errors in the decision is received within 30 days after the date of mailing of the initial decision or the proposed decision, whichever is later.

B. At his option, an An interested party may submit written exceptions to the initial or proposed decision within the 30-day period and waive further hearing proceedings.

C. If an interested party fails to appear at a hearing, the board Authority may proceed in his the interested party's absence and render a decision.

Any individual, partnership, association or corporation who is a licensee or applicant for any license or any interested party shall have the right to be represented by counsel at any board Authority hearing for which he has received notice. The licensee, applicant or interested party shall not be required to be represented by counsel during such hearing. Any officer or director of a corporation may examine, cross-examine and question witnesses, present evidence on behalf of the corporation, draw conclusions and make arguments before the board Authority.

Communications regarding appeal hearings upon licenses and applications for licenses should be addressed to the secretary to the board Chief Clerk of the Hearing, Appeals, and Judicial Services Division.

Continuances will be granted as in actions at law. Requests for continuances of appeal hearings should be addressed to the secretary to the board Chief Clerk of the Hearings, Appeals, and Judicial Services Division.

The final decision of the board Authority, together with any written opinion, should be transmitted to each interested party or to his the interested party's representative.

A. Generally. Subject to the exceptions permitted in this section, and to any stipulations agreed to by all interested parties, all evidence should be introduced at hearings before hearing officers administrative law judges.

B. Additional evidence. Should the appeal panel or Authority determine at an appeal hearing, either upon motion or otherwise, that it is necessary or desirable that additional evidence be taken, the appeal panel may:

1. Direct that a hearing officer an administrative law judge fix a time and place for the taking of such evidence within the limits prescribed by the board Authority and in accordance with 3VAC5-10-180; and

2. Upon unanimous consent of the appeal panel, permit the introduction of after-discovered or new evidence at the appeal hearing.

If the initial decision indicates that the qualifications of the establishment of an applicant or licensee are such as to cast substantial doubt upon the eligibility of the place for a license, evidence may be received at the appeal hearing limited to the issue involved and to the period of time subsequent to the date of the hearing before the hearing officer administrative law judge.

C. Examination. Any appeal panel member may examine a witness upon any question relevant to the matters in issue.

D. Cross-examination. The right to cross-examine and the submission of rebuttal evidence as provided in 3VAC5-10-90 shall be allowed in any appeal hearing where the introduction of additional evidence is permitted.

Hearings before the board Authority or appeal panel in the absence of notice to the contrary will be held in the office of the board Authority, Virginia A.B.C. Building, 7450 Freight Way, Mechanicsville, Virginia 23116.

Motions or requests for rulings, made after a hearing before a hearing officer an administrative law judge and prior to an appeal hearing before the board Authority, shall be in writing, addressed to the secretary to the board Chief Clerk of the Hearings, Appeals, and Judicial Services Division, and shall state with reasonable certainty the grounds therefor. Argument upon such motions or requests will not be heard without special leave granted by the board Authority.

Reasonable notice of the time and place of an appeal hearing shall be given to each interested party who appeared at the initial hearing or his the interested party's representative.

A. The record of the hearing before the hearing officer administrative law judge, including the initial decision, and the transcript of testimony, argument and exhibits together with all papers and requests filed in the proceeding before the board Authority, shall constitute the exclusive record for the final decision of the board.

B. Upon due application made to the secretary to the board Chief Clerk of the Hearings, Appeals, and Judicial Services Division, copies of the record, including the decision of the board Authority and any opinion setting forth the reasons for the decision shall be made available to parties entitled thereto at a rate established by the board Authority.

The board may, in its discretion for good cause shown, grant a rehearing or reconsideration on written petition of an interested party addressed to the Secretary to the Board and received within 30 days after the date of the final decision of the board. The petition shall contain a full and clear statement of the facts pertaining to the grievance, the grounds in support thereof, and a statement of the relief desired. The board may grant such at any time on its own initiative for good cause shown.

A. Except as provided in 3VAC5-10-290, the appeal hearing shall be limited to the record made before the hearing officer administrative law judge.

B. The provisions of Part I of this chapter shall be applicable to proceedings held under this part except to the extent such provisions are inconsistent herewith.

Complaints shall be referred in writing to the secretary to the board Chief Clerk of the Hearings, Appeals, and Judicial Services Division.

Hearings will be conducted in accordance with the provisions of Part I of this chapter (3VAC5-10-10 et seq.). Further, the board Authority and the hearing officers administrative law judges designated by it may require an accounting to be submitted by each party in determining an award of costs and attorneys' fees.

The decision of the hearing officer administrative law judge may be appealed to the board Authority as provided in 3VAC5-10-240. Appeals shall be conducted in accordance with the provisions of Part II of this chapter (3VAC5-10-240 et seq.).

Upon receipt from a winery, brewery, or wine or beer importer of a request for notice of a price increase less than 30 days in advance, a hearing will be scheduled before the board Authority, not a hearing officer an administrative law judge, as soon as practicable with five days notice to all parties which include at a minimum all the wholesalers selling the winery or brewery's product. There will be no continuances granted and the board Authority must rule within 24 hours of the hearing.

The Rules of the Supreme Court of Virginia Parts One, One A, Two, Two A, Three, and Four shall apply in all proceedings under the Wine and Beer Franchise Acts, Chapters 4 (§ 4.1-400 et seq.) and 5 (§ 4.1-500 et seq.) of Title 4.1 of the Code of Virginia, including mediation and arbitration proceedings when necessary pursuant to §§ 4.1-409 and 4.1-508 of the Code of Virginia. Any references to a "court" contained in the rules shall be deemed to mean the hearing officer administrative law judge or officers of the board Authority conducting the proceeding.

No provision of this section shall affect the practice of taking evidence at a hearing, but such practice, including that of generally taking evidence ore tenus only at hearings before hearing officers administrative law judges, shall continue unaffected hereby.

The board Authority and its hearing officers administrative law judges may conduct hearings by telephone only when the applicant/licensee expressly waives the in-person hearing. The board Authority will determine whether or not certain hearings might practically be conducted by telephone. The provisions of Part I (3VAC5-10-10 et seq.) shall apply only to Part IV (3VAC5-10-410 et seq.) where applicable.

The interested parties will be expected to be available by telephone at the time set for the hearing and may produce, under oath, evidence relevant and material to the matters in issue. The board Authority will arrange for telephone conference calls at its expense.

Oral or written argument may be submitted to and limited by the hearing officer administrative law judge. Oral argument is to be included in the stenographic report of the hearing. Written argument, if any, must be submitted to the hearing officer administrative law judge and other interested parties in advance of the hearing.

Documentary evidence, which an interested party desires to be considered by the hearing officer administrative law judge, must be submitted to the hearing officer administrative law judge and other interested parties in advance of the hearing.

A. Telephone hearings will usually originate from the central office of the board Authority in Richmond Mechanicsville, Virginia, but may originate from other locations. Interested parties may participate from the location of their choice where a telephone is available. If an interested party is not available by telephone at the time set for the hearing, the hearing may be conducted in his the interested party's absence.

B. If at any time during a telephone hearing the hearing officer administrative law judge determines that the issues are so complex that a fair and impartial hearing cannot be accomplished, the hearing officer administrative law judge shall adjourn the telephone hearing and reconvene an in-person hearing as soon as practicable.

A. Upon consent of all interested parties, the Authority may afford the parties an opportunity to resolve appropriate cases through mediation.

B. The mediations may be conducted by an administrative law judge of the Authority.

C. If the mediation is unsuccessful, the matter may proceed to a formal hearing. The administrative law judge that conducted the mediation shall not preside over the formal hearing.