LEGALITY OF SERVING FOOD AND DRINKS TO VISITING GROUPS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000100150024-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: September 8, 2000
• Sequence Number: 24
• Publication Date: March 22, 1976
• Content Type: MF

*OGC Has Reviewed*'
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OGC 76-1481
22 March 1976
MEMORANDUM FOR: John N. McMahon
Acting Deputy Director for Administration
SUBJECT: Legality of Serving Food and Drinks to
Visiting Groups
1,6-1--6(~>J
1. This is in response to your memorandum of 19 March 1976 regarding
the above in which you specifically inquire as to "whether there are Federal,
State or County statutes which prohibit our serving food and drinks for which
the visiting groups reimburse the Agency." At the outset, it should be noted
that the Federal Government and the State of Virginia exercise concurrent
jurisdiction over the Agency facility. Accordingly, we are governed in this
matter both by Federal procedures and guidelines established by the General
Services Administration (GSA) %as well as by the applicable Virginia law.
2. In a discussion on 22 March the undersigned had with Mr. I INTL
of your staff, it was determined that the existing practice is for the
Agency to purchase the food and alcoholic beverages for such affairs in each
case from outside business concerns (state-regulated stores in the case of
alcohol). It was further understood that each member of the group attending
the briefing in question is required to pay a certain amount based on the total
Agency expenditure for the food and drink. The refreshments are prepared
and served by Agency personnel with absolutely no participation by GSA or
GSI employees or facilities.
3. In connection with Virginia requirements , it should be pointed
out that VA. CODE ANN. ? 4-15 (1973) specifically authorizes state liquor
stores to sell alcoholic beverages to Federal instrumentalities. The state
has reserved limited jurisdiction over the land upon which the Agency sits
to impose license taxes upon any business conducted on the land.. However,
a state may not impose or collect any tax on or from the United States or any
instrumentality thereof. 4 U . S . C . 105. See also McCulloch. v. Maryland,
17 U.S. 316. More recently, the Supreme Court has held that Federal
instrumentalities are specifically immune from state liquor taxes. United
States v. State Tax Commission, 421 U.S. 44 L. Ed. 2d 204, 95 S. Ct.
1872 (1975). Accordingly, since the briefings in question are for official
Agency purposes, I have concluded based on the above that the practice of
serving food and drink for a price is neither prohibited by state or county
law nor subject to any local sales or licensing taxes.
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4. With regard to Federal requirements, I contacted Mr. Don Young
of the Office of General Counsel, GSA, on 22 March. Mr. Young asked at the
outset if the Agency had received the requisite waiver from GSA excepting
CIA from the general prohibition against serving alcoholic beverages on
Federal property as set forth in GSA regulations (41 C.F.R. 101-20.306).
I was able to reply in the affirmative, having received from Mr. _ a STATINTL
copy of a 22 February 1971 letter from GSA Administrator Robert L. Kunzig
to then CIA Director Helms granting such a waiver. In light of this waiver,
Mr. Young advised that the Agency could thus arrange for such affairs to be
privately catered and charge each participant an appropriate fee to cover the
costs to the Agency of purchasing the food and drink therefor. He emphasized
the requirement that there be no GSA connection or participation in such
affairs,
5. Accordingly, since the Agency appears to be following the above
procedure for the briefings in question, I have concluded that the existing
Agency practices in this area are consistent with the appropriate statutory
and regulatory authority.
Office of General Counsel
Operations & Management Law Division
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