Alabama 2023 Regular Session

Alabama Senate Bill SB194 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	SB194INTRODUCED
2	2	Page 0
3	3	N3G08T-1
4	4	By Senators Livingston, Singleton
5	5	RFD: Tourism
6	6	First Read: 11-Apr-23
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11	11	5 N3G08T-1 04/06/2023 PMG (L) tgw 2022-5161
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13	13	SYNOPSIS:
14	14	Existing law makes no specific provisions
15	15	regarding the retail sale, wholesale, or tax on the
16	16	sale of low-alcohol by volume content beverages from
17	17	liquor. These beverages are not available for
18	18	distribution through beer and table wine wholesalers.
19	19	This bill would define a new category of ready
20	20	to drink mixed liquor beverages containing no more than
21	21	12.5 percent alcohol by volume called "mixed spirit
22	22	beverages."
23	23	This bill would require all mixed spirit
24	24	beverages, other than those distributed by the
25	25	Alcoholic Beverage Control Board, to be distributed
26	26	through a licensed wholesaler and sold to licensed
27	27	retailers in Alabama for on-premises and off-premises
28	28	consumption.
29	29	This bill would require each importer and
30	30	manufacturer of mixed spirit beverages to designate
31	31	sales territories for each of its brands and enter into
32	32	an exclusive franchise agreement with a licensed
33	33	wholesaler for each sales territory.
34	34	This bill would set conditions and requirements
35	35	for franchise agreements between suppliers and
36	36	wholesale distributors of mixed spirit beverages,
37	37	including provisions for the modification, termination,
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67	67	cancellation, nonrenewal, or discontinuance of an
68	68	agreement.
69	69	This bill would provide for the levy of a
70	70	privilege or excise tax on mixed spirit beverages.
71	71	This bill would also make nonsubstantive,
72	72	technical revisions to update the existing code
73	73	language to current style.
74	74	A BILL
75	75	TO BE ENTITLED
76	76	AN ACT
77	77	Relating to alcoholic beverages; to amend Sections
78	78	28-3-1, 28-3A-3, 28-3A-21, and 28-3A-23, Code of Alabama 1975
79	79	and add Sections 28-3-208, 28-3A-9.1, and 28-3A-17.2 to the
80	80	Code of Alabama 1975; to define a new category of low-alcohol
81	81	content liquor beverages called mixed spirit beverages; to
82	82	require all mixed spirit beverages, other than those
83	83	distributed by the Alcoholic Beverage Control Board, to be
84	84	distributed through a licensed wholesaler; to levy taxes upon
85	85	the distribution of these beverages; to provide for licensure
86	86	of retailers of mixed spirit beverages and set a fee for
87	87	licensure; to add Chapter 8B to Title 28 of the Code of
88	88	Alabama 1975; to require licensed importers, manufacturers,
89	89	and suppliers of mixed spirit beverages to enter into
90	90	exclusive franchise agreements with wholesalers; to exempt
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120	120	from the wholesaler franchise laws mixed spirit beverages
121	121	distributed by the Alcoholic Beverage Control Board and sold
122	122	at retail at ABC stores; and to make nonsubstantive, technical
123	123	revisions to update the existing code language to current
124	124	style.
125	125	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
126	126	Section 1. The Legislature hereby finds and declares
127	127	that this act is enacted pursuant to the authority granted to
128	128	the state under the Twenty-First Amendment to the United
129	129	States Constitution, the powers reserved to the state under
130	130	the Tenth Amendment to the United States Constitution, and the
131	131	inherent powers of the state under the Constitution of Alabama
132	132	of 2022, in order to regulate the traffic of alcoholic
133	133	beverages and to substitute the regulations and oversight
134	134	established in this act for the application of federal and
135	135	state antitrust laws that otherwise would apply to any
136	136	potential anti-competitive effects of this title. For the
137	137	avoidance of doubt, the intent of the Legislature is to
138	138	maintain the uniform three-tier system of control over the
139	139	sale, purchase, taxation, transportation, manufacture,
140	140	consumption, and possession of alcoholic beverages in the
141	141	state to promote the health, safety, and welfare of residents
142	142	of this state by, among other purposes, ensuring the state
143	143	shall be able to register, audit, inspect, seize, recall, and
144	144	test alcoholic beverages shipped into, distributed, and sold
145	145	throughout this state; and this expression of the policy and
146	146	intent of the Legislature is intended to satisfy the clear
147	147	articulation test for state action immunity as has been
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177	177	established by the United States Supreme Court in California
178	178	Retail Liquor Dealers Assn. v. Midcal Aluminum, Inc., et al.
179	179	Section 2. Section 28-3-1, Code of Alabama 1975, is
180	180	amended to read as follows:
181	181	"§28-3-1
182	182	As used in this title, the following words shall have
183	183	the following meanings unless the context clearly indicates
184	184	otherwise:
185	185	(1) ALCOHOLIC BEVERAGES. Any alcoholic, spirituous,
186	186	vinous, fermented, or other alcoholic beverage, or combination
187	187	of liquors and mixed liquor, a part of which is spirituous,
188	188	vinous, fermented, or otherwise alcoholic, and all drinks or
189	189	drinkable liquids, preparations , or mixtures intended for
190	190	beverage purposes, which contain one-half of one percent or
191	191	more of alcohol by volume , and shall include . The term
192	192	includes liquor, beer, and wine, and mixed spirit beverages .
193	193	(2) ASSOCIATION. A partnership, limited partnership, or
194	194	any form of unincorporated enterprise owned by two or more
195	195	persons.
196	196	(3) BEER, or MALT OR BREWED BEVERAGES. Any beer, lager
197	197	beer, ale, porter, malt or brewed beverage, or similar
198	198	fermented beverage containing one-half of one percent or more
199	199	of alcohol by volume and not in excess of thirteen and
200	200	nine-tenths 13.9 percent alcohol by volume, brewed or produced
201	201	from malt, wholly or in part, or from rice, grain of any kind,
202	202	bran, glucose, sugar, or molasses. A beer or malt or brewed
203	203	beverage may incorporate honey, fruit, fruit juice, fruit
204	204	concentrate, herbs, spices, or other flavorings during the
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234	234	fermentation process. The term does not include any product
235	235	defined as liquor, table wine, or wine.
236	236	(4) BOARD. The Alcoholic Beverage Control Board.
237	237	(5) BRANDY. All beverages that are an alcoholic
238	238	distillate from the fermented juice, mash, or wine of fruit,
239	239	or from the residue thereof, produced in such manner that the
240	240	distillate possesses the taste, aroma, and characteristics
241	241	generally attributed to the beverage, as bottled at not less
242	242	than 80 degree proof.
243	243	(6) CARTON. The package or container or containers in
244	244	which alcoholic beverages are originally packaged for shipment
245	245	to market by the manufacturer or its designated
246	246	representatives or the importer.
247	247	(7) CIDER. A fermented alcoholic beverage made from
248	248	apple juice and containing not more than 8.5 percent alcohol
249	249	by volume.
250	250	(8) CLUB.
251	251	a. Class I. A corporation or association organized or
252	252	formed in good faith by authority of law and which must have
253	253	at least 150 paid-up members. It must be the owner, lessee, or
254	254	occupant of an establishment operated solely for the objects
255	255	of a national, social, patriotic, political, or athletic
256	256	nature or the like, but not for pecuniary gain, and the
257	257	property as well as the advantages of which, belong to all the
258	258	members and which maintains an establishment provided with
259	259	special space and accommodations where, in consideration of
260	260	payment, food with or without lodging is habitually served.
261	261	The club shall hold regular meetings, continue its business
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291	291	through officers regularly elected, admit members by written
292	292	application, investigation, and ballot, and charge and collect
293	293	dues from elected members.
294	294	b. Class II. A corporation or association organized or
295	295	formed in good faith by authority of law and which must have
296	296	at least 100 paid-up members. It must be the owner, lessee, or
297	297	occupant of an establishment operated solely for the objects
298	298	of a national, social, patriotic, political, or athletic
299	299	nature or the like. The club shall hold regular meetings,
300	300	continue its business through officers regularly elected,
301	301	admit members by written application, investigation, and
302	302	ballot, and charge and collect dues from elected members.
303	303	(9) CONTAINER. The single bottle, can, keg, bag, or
304	304	other receptacle, but not a carton, in which alcoholic
305	305	beverages are originally packaged for the market by the
306	306	manufacturer or importer and from which the alcoholic beverage
307	307	is consumed by or dispensed to the public.
308	308	(10) CORPORATION. A corporation or joint stock
309	309	association organized under the laws of this state, the United
310	310	States, or any other state, territory , or foreign country, or
311	311	dependency.
312	312	(11) DELIVERY. The transportation of alcoholic
313	313	beverages directly from a retail licensee of the board to an
314	314	individual, pursuant to Section 28-1-4 and Section 28-3A-13.1.
315	315	(12) DELIVERY SERVICE LICENSE. A license issued by the
316	316	Alabama Alcoholic Beverage Control Board in accordance with
317	317	Section 28-3A-13.1 that authorizes the licensee, the
318	318	licensee's employees, or independent contractors under a
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348	348	contractual or business arrangement with the licensee to
349	349	transport and deliver alcoholic beverages.
350	350	(13) DRY COUNTY. Any county which by a majority of
351	351	those voting voted in the negative in an election heretofore
352	352	held under the applicable statutes at the time of the election
353	353	or may hereafter vote in the negative in an election or
354	354	special method referendum hereafter held in accordance with
355	355	Chapter 2, or held in accordance with the provisions of any
356	356	act hereafter enacted permitting such election.
357	357	(14) DRY MUNICIPALITY. Any municipality within a wet
358	358	county which has, by its governing body or by a majority of
359	359	those voting in a municipal election heretofore held in
360	360	accordance with the provisions of Section 28-2-22, or in a
361	361	municipal option election heretofore or hereafter held in
362	362	accordance with the provisions of Act 84-408, Acts of Alabama
363	363	1984, appearing as Chapter 2A, or any act hereafter enacted
364	364	permitting municipal option election, voted to exclude the
365	365	sale of alcoholic beverages within the corporate limits of the
366	366	municipality.
367	367	(15) EMPLOYEE. An individual to whom an employer is
368	368	required to issue a W-2 tax form under federal law.
369	369	(16) GENERAL WELFARE PURPOSES. All of the following:
370	370	a. The administration of public assistance as set out
371	371	in Sections 38-2-5 and 38-4-1.
372	372	b. Services, including supplementation and
373	373	supplementary services under the federal Social Security Act,
374	374	to or on behalf of persons to whom public assistance may be
375	375	given under Sections 38-2-5 and 38-4-1.
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405	405	c. Service to and on behalf of dependent, neglected, or
406	406	delinquent children.
407	407	d. Investigative and referral services to and on behalf
408	408	of needy persons.
409	409	(17) HEARING COMMISSION. A body appointed by the board
410	410	to hear and decide all contested license applications and all
411	411	disciplinary charges against any licensee for violation of
412	412	this title or the rules of the board.
413	413	(18) HOTEL. A building or buildings held out to the
414	414	public for housing accommodations of travelers or transients,
415	415	and shall include motel, but shall not include a rooming house
416	416	or boarding house.
417	417	(19) IMPORTER. Any person, association, or corporation
418	418	engaged in importing alcoholic beverages, liquor, wine, or
419	419	beer, or mixed spirit beverages manufactured outside of the
420	420	United States of America into this state or for sale or
421	421	distribution in this state, or to the board or to a licensee
422	422	of the board.
423	423	(20) INDEPENDENT CONTRACTOR. An individual to whom an
424	424	employer is required to issue a 1099 tax form under federal
425	425	law.
426	426	(21) KEG. A pressurized factory sealed container with a
427	427	capacity equal to or greater than five U.S. gallons, from
428	428	which beer is withdrawn by means of an external tap.
429	429	(22) LIQUOR. Any alcoholic, spirituous, vinous,
430	430	fermented, or other alcoholic beverage, or combination of
431	431	liquors and mixed liquor, a part of which is spirituous,
432	432	fermented, vinous, or otherwise alcoholic, and all drinks or
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462	462	drinkable liquids, preparations, or mixtures intended for
463	463	beverage purposes, which contain one-half of one percent or
464	464	more of alcohol by volume, except beer and table wine.
465	465	(23) LIQUOR STORE. A liquor store operated by the
466	466	board, where alcoholic beverages other than beer are
467	467	authorized to be sold in unopened containers.
468	468	(24) MANUFACTURER. Any person, association, or
469	469	corporation engaged in the producing, bottling, manufacturing,
470	470	distilling, fermenting, brewing, rectifying, or compounding of
471	471	alcoholic beverages, liquor, beer, or wine, or mixed spirit
472	472	beverages in this state or for sale or distribution in this
473	473	state or to the board or to a licensee of the board.
474	474	(25) MEAD. An alcoholic beverage produced by fermenting
475	475	a solution of honey and water with grain mash and containing
476	476	not more than 18 percent alcohol by volume.
477	477	(26) MEAL. A diversified selection of food some of
478	478	which is not susceptible of being consumed in the absence of
479	479	at least some articles of tableware and which cannot be
480	480	conveniently consumed while one is standing or walking about.
481	481	(27) MINOR. Any person under 21 years of age; provided,
482	482	however, in the event Section 28-1-5 , shall be repealed or
483	483	otherwise shall be no longer in effect, thereafter the
484	484	provisions of Section 26-1-1, shall govern.
485	485	(28) MIXED SPIRIT BEVERAGE. A single-serve beverage
486	486	containing liquor, packaged in a can or a container approved
487	487	by the board no larger than 16 ounces, and which contains no
488	488	more than 12.5 percent alcohol by volume. The term does not
489	489	include any beverage containing liquor over 16 ounces in size,
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519	519	or of more than 12.5 percent alcohol by volume.
520	520	(28)(29) MUNICIPALITY. Any incorporated city or town of
521	521	this state to include its police jurisdiction.
522	522	(29)(30) PERSON. Every natural person, association, or
523	523	corporation. Whenever used in a clause prescribing or imposing
524	524	a fine or imprisonment, or both, such term as applied to
525	525	association shall mean the partners or members thereof and as
526	526	applied to corporation shall mean the officers thereof, except
527	527	as to incorporated clubs the term person shall mean such
528	528	individual or individuals who, under the bylaws of such clubs,
529	529	shall have jurisdiction over the possession and sale of liquor
530	530	therein.
531	531	(30)(31) POPULATION. The population according to the
532	532	last preceding or any subsequent decennial census of the
533	533	United States, except where a municipality is incorporated
534	534	subsequent to the last census, in which event, its population
535	535	until the next decennial census shall be the population of the
536	536	municipality as determined by the judge of probate of the
537	537	county as the official population on the date of its
538	538	incorporation.
539	539	(31)(32) RESTAURANT. A reputable place licensed as a
540	540	restaurant, operated by a responsible person of good
541	541	reputation and habitually and principally used for the purpose
542	542	of preparing and serving meals for the public to consume on
543	543	the premises.
544	544	(32)(33) RETAILER. Any person licensed by the board to
545	545	engage in the retail sale of any alcoholic beverages to the
546	546	consumer.
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576	576	(33)(34) SALE or SELL. Any transfer of liquor, wine ,or
577	577	beer, or mixed spirit beverages for a consideration, and any
578	578	gift in connection with, or as a part of, a transfer of
579	579	property other than liquor, wine, or beer, or mixed spirit
580	580	beverages for a consideration.
581	581	(34)(35) SELLING PRICE. The total marked-up price of
582	582	spirituous or vinous liquors sold by the board, exclusive of
583	583	taxes levied thereon.
584	584	(35)(36) TABLE WINE. Except as otherwise provided in
585	585	this subdivision, any wine containing not more than 24 percent
586	586	alcohol by volume. Table wine does not include any wine
587	587	containing more than sixteen and one-half 16.5 percent alcohol
588	588	by volume that is made with herbs or flavors, except vermouth,
589	589	or is an imitation or other than standard wine. Table wine is
590	590	not liquor, spirituous, or vinous.
591	591	(36)(37) UNOPENED CONTAINER. A container containing
592	592	alcoholic beverages, which has not been opened or unsealed
593	593	subsequent to filling and sealing by the manufacturer or
594	594	importer.
595	595	(37)(38) WET COUNTY. Any county which by a majority of
596	596	those voting voted in the affirmative in an election
597	597	heretofore held in accordance with the statutes applicable at
598	598	the time of the election or may hereafter vote in the
599	599	affirmative in an election or special method referendum held
600	600	in accordance with Chapter 2, or other statutes applicable at
601	601	the time of the election.
602	602	(38)(39) WET MUNICIPALITY. Any municipality in a dry
603	603	county which by a majority of those voting voted in the
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633	633	affirmative in a municipal option election heretofore or
634	634	hereafter held in accordance with the provisions of Act
635	635	84-408, Acts of Alabama 1984, appearing as Chapter 2A of this
636	636	title, as amended, or any act hereafter enacted permitting
637	637	municipal option election, or any municipality which became
638	638	wet by vote of the governing body or by the voters of the
639	639	municipality heretofore or hereafter held under the special
640	640	method referendum provisions of Section 28-2-22, or as
641	641	hereafter provided, where the county has become dry subsequent
642	642	to the elected wet status of the municipality.
643	643	(39)(40) WHOLESALER. Any person licensed by the board
644	644	to engage in the sale and distribution of table wine ,and
645	645	beer, or mixed spirit beverages, or either of them any
646	646	combination thereof , within this state, at wholesale only, to
647	647	be sold by export or to retail licensees or other wholesale
648	648	licensees or others within this state lawfully authorized to
649	649	sell table wine,and beer, or mixed spirit beverages, or
650	650	either of them any combination thereof , for the purpose of
651	651	resale only.
652	652	(40)(41) WINE. All beverages made from the fermentation
653	653	of fruits, berries, or grapes, with or without added spirits,
654	654	and produced in accordance with the laws and regulations of
655	655	the United States, containing not more than 24 percent alcohol
656	656	by volume, and shall include all sparkling wines, carbonated
657	657	wines, special natural wines, rectified wines, vermouths,
658	658	vinous beverages, vinous liquors, and like products, including
659	659	restored or unrestored pure condensed juice."
660	660	Section 3. Section 28-3-208 is added to the Code of
661	661	309
662	662	310
663	663	311
664	664	312
665	665	313
666	666	314
667	667	315
668	668	316
669	669	317
670	670	318
671	671	319
672	672	320
673	673	321
674	674	322
675	675	323
676	676	324
677	677	325
678	678	326
679	679	327
680	680	328
681	681	329
682	682	330
683	683	331
684	684	332
685	685	333
686	686	334
687	687	335
688	688	336 SB194 INTRODUCEDSB194 INTRODUCED
689	689	Page 13
690	690	Alabama 1975, to read as follows:
691	691	§28-3-208
692	692	(a) Levy. There is hereby levied, in addition to the
693	693	license taxes provided for by this chapter and municipal and
694	694	county license taxes, a privilege or excise tax measured by
695	695	and graduated in accordance with the volume of sales of mixed
696	696	spirit beverages. The tax shall be an amount equal to
697	697	ninety-eight cents ($.98) per 12 fluid ounces or fractional
698	698	part thereof.
699	699	(b) Collection, Monthly Return, Remittance, Right to
700	700	Examine Books and Records.
701	701	(1)a. The tax levied by subsection (a) shall be added
702	702	to the sales price of all mixed spirit beverages and shall be
703	703	collected from the retail purchasers. The tax shall be
704	704	collected in the first instance from the wholesaler where
705	705	mixed spirit beverages are sold or handled by wholesale
706	706	licensees.
707	707	b. It shall be unlawful for any person who is required
708	708	to pay the tax in the first instance to fail or refuse to add
709	709	to the sales price and collect from the purchaser the required
710	710	amount of tax, it being the intent and purpose of this section
711	711	that the tax levied is in fact a levy on the retail purchaser.
712	712	The person who pays the tax in the first instance is acting as
713	713	an agent of the state for the collection and payment of the
714	714	tax and as such may not collect a tax on mixed spirit
715	715	beverages for any other level of government.
716	716	(2) The tax levied by subsection (a) shall be collected
717	717	by a monthly return, which shall be filed by wholesale
718	718	337
719	719	338
720	720	339
721	721	340
722	722	341
723	723	342
724	724	343
725	725	344
726	726	345
727	727	346
728	728	347
729	729	348
730	730	349
731	731	350
732	732	351
733	733	352
734	734	353
735	735	354
736	736	355
737	737	356
738	738	357
739	739	358
740	740	359
741	741	360
742	742	361
743	743	362
744	744	363
745	745	364 SB194 INTRODUCEDSB194 INTRODUCED
746	746	Page 14
747	747	licensees as follows:
748	748	a. A monthly return shall be filed with the board on a
749	749	form as prescribed or approved by the board by rule not later
750	750	than the 15th day of the second month following the month of
751	751	receipt of mixed spirit beverages by the wholesaler, showing
752	752	receipts by the wholesaler from manufacturer, importer, or
753	753	other wholesaler licensees during the month of receipt and the
754	754	taxes due thereon at the rate of ninety cents ($.90) per 12
755	755	fluid ounces or fractional part thereof of mixed spirit
756	756	beverages purchased by the wholesaler licensee. The taxes due
757	757	under this paragraph shall be remitted to the board along with
758	758	the return.
759	759	b. A monthly return shall be filed with the county or
760	760	municipality within which the mixed spirit beverage is sold at
761	761	retail not later than the 15th day of each month, showing
762	762	sales by wholesalers during the preceding month and the county
763	763	or municipality in which sold and the taxes due thereon at the
764	764	rate of eight cents ($.08) per 12 fluid ounces or fractional
765	765	part thereof. The taxes due under this paragraph shall be
766	766	remitted to the county or municipality along with the return.
767	767	(3) The board and the governing body of each county and
768	768	municipality served by the wholesaler may examine the books
769	769	and records of any person who sells, stores, or receives for
770	770	the purpose of distribution any mixed spirit beverages, to
771	771	determine the accuracy of any return required to be filed with
772	772	it.
773	773	(c) Disposition of proceeds. The proceeds of the tax
774	774	levied by subsection (a) and remitted by subsection (b) shall
775	775	365
776	776	366
777	777	367
778	778	368
779	779	369
780	780	370
781	781	371
782	782	372
783	783	373
784	784	374
785	785	375
786	786	376
787	787	377
788	788	378
789	789	379
790	790	380
791	791	381
792	792	382
793	793	383
794	794	384
795	795	385
796	796	386
797	797	387
798	798	388
799	799	389
800	800	390
801	801	391
802	802	392 SB194 INTRODUCEDSB194 INTRODUCED
803	803	Page 15
804	804	be paid and distributed as follows:
805	805	(1) Sixty-five cents ($.65) per 12 fluid ounces or
806	806	fractional part thereof of mixed spirit beverages taxes
807	807	remitted by wholesalers to the board shall be deposited by the
808	808	board to the State General Fund.
809	809	(2) Ten cents ($.10) per 12 fluid ounces or fractional
810	810	part thereof of mixed spirit beverages taxes remitted by
811	811	wholesalers to the board shall be retained by the board for
812	812	regulatory and administrative purposes.
813	813	(3) Fifteen cents ($.15) per 12 fluid ounces or
814	814	fractional part thereof of mixed spirit beverages taxes
815	815	remitted by wholesalers to the board shall be remitted by
816	816	wholesalers and divided equally between the board and the
817	817	Alabama State Law Enforcement Agency to be retained by each
818	818	for purposes of enforcement.
819	819	(4) Eight cents ($.08) per 12 fluid ounces or
820	820	fractional part thereof of mixed spirit beverages sold shall
821	821	be remitted by wholesalers either into the treasury of the
822	822	municipality in which the mixed spirit beverages were sold
823	823	within its corporate limits or, where sold outside the
824	824	corporate limits of any municipality, into the treasury of the
825	825	county in which the mixed spirit beverages were sold;
826	826	provided, where the taxes are timely paid to the county or
827	827	municipality, the tax due to the county or municipality shall
828	828	be discounted by two and one-half percent, which discount
829	829	shall be retained by the wholesaler for collecting the tax.
830	830	(d) Taxes exclusive. The taxes levied pursuant to this
831	831	section are exclusive and shall be in lieu of all other and
832	832	393
833	833	394
834	834	395
835	835	396
836	836	397
837	837	398
838	838	399
839	839	400
840	840	401
841	841	402
842	842	403
843	843	404
844	844	405
845	845	406
846	846	407
847	847	408
848	848	409
849	849	410
850	850	411
851	851	412
852	852	413
853	853	414
854	854	415
855	855	416
856	856	417
857	857	418
858	858	419
859	859	420 SB194 INTRODUCEDSB194 INTRODUCED
860	860	Page 16
861	861	additional taxes and licenses of the state, county, or
862	862	municipality imposed on or measured by the sale or volume of
863	863	sale of mixed spirit beverages; provided, however, nothing
864	864	contained in this section shall be construed to exempt the
865	865	retail sale of mixed spirit beverages from the levy of tax on
866	866	general retail sales by the state, county, or municipality in
867	867	the nature of, or in lieu of, a general sales tax.
868	868	(e) Trade between wholesalers exempt. The taxes levied
869	869	by subsection (a) shall not be imposed upon the sale, trade,
870	870	or barter of mixed spirit beverages by one licensed wholesaler
871	871	to another wholesaler licensed to sell and handle mixed spirit
872	872	beverages in this state, which transaction is hereby made
873	873	exempt from the tax; provided, however, the board may require
874	874	written reporting of any transaction in the form as the board
875	875	by rule may prescribe.
876	876	(f) County and municipal license fees. Each county and
877	877	municipality may fix a reasonable privilege or license fee on
878	878	retailer, importer, and wholesaler licensees, for the purpose
879	879	of covering the cost of administration with respect to the
880	880	sale of mixed spirit beverages, but not to generate revenue;
881	881	provided, however, a county or municipality may not levy a
882	882	license or privilege tax or other charge for the privilege of
883	883	doing business as a mixed spirit beverages retailer, importer,
884	884	or wholesaler which exceeds one-half the amount of the state
885	885	license fee.
886	886	Section 4. Section 28-3A-3, Code of Alabama 1975, is
887	887	amended to read as follows:
888	888	"§28-3A-3
889	889	421
890	890	422
891	891	423
892	892	424
893	893	425
894	894	426
895	895	427
896	896	428
897	897	429
898	898	430
899	899	431
900	900	432
901	901	433
902	902	434
903	903	435
904	904	436
905	905	437
906	906	438
907	907	439
908	908	440
909	909	441
910	910	442
911	911	443
912	912	444
913	913	445
914	914	446
915	915	447
916	916	448 SB194 INTRODUCEDSB194 INTRODUCED
917	917	Page 17
918	918	(a)(1) Subject to this chapter and rules adopted
919	919	thereunder, the board may issue and renew licenses to
920	920	reputable and responsible persons for the following purposes:
921	921	(1)a. To manufacture, brew, distill, ferment, rectify,
922	922	bottle, or compound any or all alcoholic beverages within or
923	923	for sale within this state.
924	924	(2)b. To import any or all alcoholic beverages
925	925	manufactured outside the United States into this state or for
926	926	sale or distribution within this state.
927	927	(3)c. To distribute, wholesale, or act as jobber for
928	928	the sale of liquor.
929	929	(4)d. To distribute, wholesale, or act as jobber for
930	930	the sale of table wine and beer or either of them, to licensed
931	931	retailers within the state and others within this state
932	932	lawfully authorized to sell table wine or beer.
933	933	(5)e. To store or warehouse any or all alcoholic
934	934	beverages for transshipment inside and outside the state.
935	935	(6)f. To sell and dispense at retail in a lounge,
936	936	liquor and other alcoholic beverages.
937	937	(7)g. To sell and dispense at retail , in an
938	938	establishment habitually and principally used for the purpose
939	939	of providing meals for the public, liquor and other alcoholic
940	940	beverages for on-premises consumption.
941	941	(8)h. To sell liquor and wine at retail for
942	942	off-premises consumption.
943	943	(9)i. To sell and dispense at retail in a club, liquor
944	944	and other alcoholic beverages for on-premises consumption.
945	945	(10)j. To sell table wine at retail for off-premises
946	946	449
947	947	450
948	948	451
949	949	452
950	950	453
951	951	454
952	952	455
953	953	456
954	954	457
955	955	458
956	956	459
957	957	460
958	958	461
959	959	462
960	960	463
961	961	464
962	962	465
963	963	466
964	964	467
965	965	468
966	966	469
967	967	470
968	968	471
969	969	472
970	970	473
971	971	474
972	972	475
973	973	476 SB194 INTRODUCEDSB194 INTRODUCED
974	974	Page 18
975	975	consumption.
976	976	(11)k. To sell table wine at retail for on-premises and
977	977	off-premises consumption.
978	978	(12)l. To sell beer at retail for on-premises and
979	979	off-premises consumption.
980	980	(13)m. To sell beer at retail for off-premises
981	981	consumption.
982	982	n. To sell mixed spirit beverages at retail for
983	983	on-premises and off-premises consumption.
984	984	o. To sell mixed spirit beverages at retail for
985	985	off-premises consumption.
986	986	(14)p. To sell liquor and other alcoholic beverages at
987	987	retail by a retail common carrier with a passenger capacity of
988	988	at least 10 people.
989	989	(15)q. To sell any or all alcoholic beverages at retail
990	990	under special license issued conditioned upon terms and
991	991	conditions and for the period of time prescribed by the board.
992	992	(16)r. To sell any or all alcoholic beverages at retail
993	993	under a special event retail license issued for three days
994	994	upon the terms and conditions prescribed by the board.
995	995	(2) Provided, however, that the Notwithstanding
996	996	subdivision (1), licenses authorized under subdivision (1) may
997	997	not be issued in dry counties where traffic in alcoholic
998	998	beverages is not authorized by law ,therein except a wine
999	999	manufacturer license may be issued in a dry county pursuant to
1000	1000	Section 28-7-10.1. Provided the restriction of this
1001	1001	paragraphsubdivision shall not apply to the issuance of a
1002	1002	renewal of a license under subdivisions (1), (2), (3), (4),
1003	1003	477
1004	1004	478
1005	1005	479
1006	1006	480
1007	1007	481
1008	1008	482
1009	1009	483
1010	1010	484
1011	1011	485
1012	1012	486
1013	1013	487
1014	1014	488
1015	1015	489
1016	1016	490
1017	1017	491
1018	1018	492
1019	1019	493
1020	1020	494
1021	1021	495
1022	1022	496
1023	1023	497
1024	1024	498
1025	1025	499
1026	1026	500
1027	1027	501
1028	1028	502
1029	1029	503
1030	1030	504 SB194 INTRODUCEDSB194 INTRODUCED
1031	1031	Page 19
1032	1032	and (5)paragraphs (1)a., (1)b., (1)c., (1)d., or (1)e. where
1033	1033	the county or municipality was wet when the initial license
1034	1034	was issued and the county or municipality subsequently votes
1035	1035	dry; however, no importer or wholesaler licensee may sell or
1036	1036	distribute alcoholic beverages within a dry county, except in
1037	1037	a wet municipality therein, or within a dry municipality.
1038	1038	(b) The board is granted discretionary powers in acting
1039	1039	upon license applications under the provisions of this
1040	1040	chapter.
1041	1041	(c) Licenses issued under this chapter, unless revoked
1042	1042	or suspended in the manner provided in this chapter, shall be
1043	1043	valid for the license year which shall begin on the first day
1044	1044	of October of each year, unless otherwise established by this
1045	1045	chapter or by the board. Licenses may be issued at any time
1046	1046	during the year."
1047	1047	Section 5.Sections 28-3A-9.1 and 28-3A-17.2 are added
1048	1048	to the Code of Alabama 1975, to read as follows:
1049	1049	§28-3A-9.1
1050	1050	(a) Upon payment of the applicable fee for a mixed
1051	1051	spirit beverage wholesaler license as established in Section
1052	1052	28-3A-21, the board shall issue to a wholesaler licensed to
1053	1053	distribute beer or table wine as provided in Section 28-3A-9 a
1054	1054	mixed spirit beverage wholesaler license.
1055	1055	(b) A mixed spirit beverage wholesale license shall
1056	1056	authorize the licensee to do all of the following:
1057	1057	(1) Import and receive shipments of mixed spirit
1058	1058	beverages from outside the state from licensed manufacturers.
1059	1059	(2) Purchase mixed spirit beverages from licensed
1060	1060	505
1061	1061	506
1062	1062	507
1063	1063	508
1064	1064	509
1065	1065	510
1066	1066	511
1067	1067	512
1068	1068	513
1069	1069	514
1070	1070	515
1071	1071	516
1072	1072	517
1073	1073	518
1074	1074	519
1075	1075	520
1076	1076	521
1077	1077	522
1078	1078	523
1079	1079	524
1080	1080	525
1081	1081	526
1082	1082	527
1083	1083	528
1084	1084	529
1085	1085	530
1086	1086	531
1087	1087	532 SB194 INTRODUCEDSB194 INTRODUCED
1088	1088	Page 20
1089	1089	manufacturers or other licensed wholesalers within the state.
1090	1090	(3) Sell at wholesale or distribute mixed spirit
1091	1091	beverages to all licensees or other persons within this state
1092	1092	lawfully authorized to sell mixed spirit beverages within the
1093	1093	state.
1094	1094	(4) Export mixed spirit beverages from the state.
1095	1095	(c) Sales to all authorized persons shall be in
1096	1096	original packages or containers as prepared for the market by
1097	1097	the manufacturer.
1098	1098	(d)(1) Except as provided in subdivision (2), no person
1099	1099	shall sell at wholesale or distribute mixed spirit beverages
1100	1100	within this state or to licensees of the board unless the
1101	1101	person is issued by the board a wholesaler license to
1102	1102	distribute mixed spirit beverages.
1103	1103	(2) Notwithstanding this section, Section 28-3A-17.2,
1104	1104	or Chapter 8B, the board shall have the authority to act as a
1105	1105	wholesaler of mixed spirit beverages, provided the board, as a
1106	1106	wholesaler, shall only distribute mixed spirit beverages to
1107	1107	liquor stores operated by the board.
1108	1108	§28-3A-17.2
1109	1109	(a) Upon payment of the limited mixed spirit beverage
1110	1110	expanded retail license fee as established in Section
1111	1111	28-3A-21, the board shall issue a limited mixed spirit
1112	1112	beverage expanded retail license to any person who holds and
1113	1113	possesses any of the following:
1114	1114	(1) A valid retail table wine license for on-premises
1115	1115	and off-premises consumption as provided for in Section
1116	1116	28-3A-14.
1117	1117	533
1118	1118	534
1119	1119	535
1120	1120	536
1121	1121	537
1122	1122	538
1123	1123	539
1124	1124	540
1125	1125	541
1126	1126	542
1127	1127	543
1128	1128	544
1129	1129	545
1130	1130	546
1131	1131	547
1132	1132	548
1133	1133	549
1134	1134	550
1135	1135	551
1136	1136	552
1137	1137	553
1138	1138	554
1139	1139	555
1140	1140	556
1141	1141	557
1142	1142	558
1143	1143	559
1144	1144	560 SB194 INTRODUCEDSB194 INTRODUCED
1145	1145	Page 21
1146	1146	(2) A valid retail table wine license for off-premises
1147	1147	consumption as provided for in Section 28-3A-15.
1148	1148	(3) A valid retail beer license for on-premises and
1149	1149	off-premises consumption as provided for in Section 28-3A-16.
1150	1150	(4) A valid retail beer license for off-premises
1151	1151	consumption as provided for in Section 28-3A-17.
1152	1152	(b) Upon written request to the board and without
1153	1153	payment of any additional fee, the board shall issue a limited
1154	1154	mixed spirit beverage expanded retail license to any person
1155	1155	who holds and possesses any of the following:
1156	1156	(1) A valid lounge retail liquor license as provided
1157	1157	for in Section 28-3A-11.
1158	1158	(2) A valid club liquor license as provided for in
1159	1159	Section 28-3A-12.
1160	1160	(3) A valid restaurant retail liquor license as
1161	1161	provided for in Section 28-3A-13.
1162	1162	(4) A special events retail license as provided for in
1163	1163	Section 28-3A-20.
1164	1164	(c) A license issued under this section shall authorize
1165	1165	the licensee to purchase mixed spirit beverages from a
1166	1166	licensed mixed spirit beverage wholesaler and sell the mixed
1167	1167	spirit beverages at retail, commensurate with the privileges
1168	1168	granted to a licensee to sell at retail beer and table wine.
1169	1169	(d) The board shall retain all limited mixed spirit
1170	1170	beverage expanded retail license fees collected. The board may
1171	1171	use collected fees for regulatory and administrative purposes
1172	1172	as determined by the board, including for the purposes of
1173	1173	establishing and maintaining a cost of evidence fund to assist
1174	1174	561
1175	1175	562
1176	1176	563
1177	1177	564
1178	1178	565
1179	1179	566
1180	1180	567
1181	1181	568
1182	1182	569
1183	1183	570
1184	1184	571
1185	1185	572
1186	1186	573
1187	1187	574
1188	1188	575
1189	1189	576
1190	1190	577
1191	1191	578
1192	1192	579
1193	1193	580
1194	1194	581
1195	1195	582
1196	1196	583
1197	1197	584
1198	1198	585
1199	1199	586
1200	1200	587
1201	1201	588 SB194 INTRODUCEDSB194 INTRODUCED
1202	1202	Page 22
1203	1203	in regulatory functions of the board.
1204	1204	(e) Upon payment of a limited mixed spirit beverage
1205	1205	expanded retail license fee, there shall be no additional
1206	1206	licensing or administrative requirements, including no
1207	1207	requirement for additional background checks, imposed by a
1208	1208	municipality, a county, or the state for licensees for the
1209	1209	sale of mixed spirit beverages.
1210	1210	Section 6. Sections 28-3A-21 and 28-3A-23, Code of
1211	1211	Alabama 1975, are amended to read as follows:
1212	1212	"§28-3A-21
1213	1213	(a) The following annual license fees are levied and
1214	1214	prescribed for licenses issued and renewed by the board
1215	1215	pursuant to the authority contained in this chapter:
1216	1216	(1) Manufacturer license, license fee of five hundred
1217	1217	dollars ($500).
1218	1218	(2) Importer license, license fee of five hundred
1219	1219	dollars ($500).
1220	1220	(3) Liquor wholesale license, license fee of five
1221	1221	hundred dollars ($500).
1222	1222	(4) Wholesaler Beer wholesaler license, beer license
1223	1223	fee of five hundred fifty dollars ($550) or wine license fee
1224	1224	of five hundred fifty dollars ($550); license fee for beer and
1225	1225	wine of seven hundred fifty dollars ($750); plus two hundred
1226	1226	dollars ($200) for each warehouse in addition to the principal
1227	1227	warehouse.
1228	1228	(5) Wine wholesaler license, license fee of five
1229	1229	hundred fifty dollars ($550) plus two hundred dollars ($200)
1230	1230	for each warehouse in addition to the principal warehouse.
1231	1231	589
1232	1232	590
1233	1233	591
1234	1234	592
1235	1235	593
1236	1236	594
1237	1237	595
1238	1238	596
1239	1239	597
1240	1240	598
1241	1241	599
1242	1242	600
1243	1243	601
1244	1244	602
1245	1245	603
1246	1246	604
1247	1247	605
1248	1248	606
1249	1249	607
1250	1250	608
1251	1251	609
1252	1252	610
1253	1253	611
1254	1254	612
1255	1255	613
1256	1256	614
1257	1257	615
1258	1258	616 SB194 INTRODUCEDSB194 INTRODUCED
1259	1259	Page 23
1260	1260	(6) Mixed spirit beverage wholesaler license, license
1261	1261	fee of five hundred fifty dollars ($550) plus two hundred
1262	1262	dollars ($200) for each warehouse in addition to the principal
1263	1263	warehouse.
1264	1264	(7) Beer, wine, and mixed spirit beverage wholesaler
1265	1265	license, license fee of one thousand dollars ($1,000) plus two
1266	1266	hundred dollars ($200) for each warehouse in addition to the
1267	1267	principal warehouse.
1268	1268	(5)(8) Warehouse license, license fee of two hundred
1269	1269	dollars ($200).
1270	1270	(6)(9) Lounge retail liquor license, license fee of
1271	1271	three hundred dollars ($300).
1272	1272	(7)(10) Restaurant retail liquor license, license fee
1273	1273	of three hundred dollars ($300).
1274	1274	(8)(11) Club liquor license, Class I license fee of
1275	1275	three hundred dollars ($300), Class II license fee of seven
1276	1276	hundred fifty dollars ($750).
1277	1277	(9)(12) Retail table wine license for off-premises
1278	1278	consumption, license fee of one hundred fifty dollars ($150).
1279	1279	(10)(13) Retail table wine license for on-premises and
1280	1280	off-premises consumption, license fee of one hundred fifty
1281	1281	dollars ($150).
1282	1282	(11)(14) Retail beer license for on-premises and
1283	1283	off-premises consumption, license fee of one hundred fifty
1284	1284	dollars ($150).
1285	1285	(12)(15) Retail beer license for off-premises
1286	1286	consumption, license fee of one hundred fifty dollars ($150).
1287	1287	(13)(16) Retail common carrier liquor license, license
1288	1288	617
1289	1289	618
1290	1290	619
1291	1291	620
1292	1292	621
1293	1293	622
1294	1294	623
1295	1295	624
1296	1296	625
1297	1297	626
1298	1298	627
1299	1299	628
1300	1300	629
1301	1301	630
1302	1302	631
1303	1303	632
1304	1304	633
1305	1305	634
1306	1306	635
1307	1307	636
1308	1308	637
1309	1309	638
1310	1310	639
1311	1311	640
1312	1312	641
1313	1313	642
1314	1314	643
1315	1315	644 SB194 INTRODUCEDSB194 INTRODUCED
1316	1316	Page 24
1317	1317	fee of one hundred fifty dollars ($150) for each railroad,
1318	1318	airline, bus line, ship line, vessel , or other common carrier
1319	1319	entity with a vehicle passenger capacity of at least 10
1320	1320	people.
1321	1321	(14)(17) Special retail license, license fee of one
1322	1322	hundred dollars ($100) for 30 days or less; license fee of two
1323	1323	hundred fifty dollars ($250) for more than 30 days.
1324	1324	(15)(18) Special events retail license, license fee of
1325	1325	one hundred fifty dollars ($150).
1326	1326	(19) Limited mixed spirit beverage expanded retail
1327	1327	license, license fee of five hundred dollars ($500).
1328	1328	(b) The license fees levied and fixed by this section
1329	1329	shall be paid before the license is issued or renewed.
1330	1330	(c) In addition to the foregoing filing fee and license
1331	1331	taxes or fees,levied and fixed by this section, any county or
1332	1332	municipality in which the sale of alcoholic beverages is
1333	1333	permitted shall be authorized to may fix and levy privileges
1334	1334	or license taxes on any of the foregoing licenses located or
1335	1335	operated therein, conditioned on a permit or license being
1336	1336	issued by the board.
1337	1337	(d) No county or municipality shall have any authority
1338	1338	to levy a license or tax of any nature on any liquor store."
1339	1339	"§28-3A-23
1340	1340	(a) No license prescribed in this code chapter shall be
1341	1341	issued or renewed until the provisions of this code title have
1342	1342	been complied with and the filing and license fees other than
1343	1343	those levied by a municipality are paid to the board.
1344	1344	(b) Licenses shall be granted and issued by the board
1345	1345	645
1346	1346	646
1347	1347	647
1348	1348	648
1349	1349	649
1350	1350	650
1351	1351	651
1352	1352	652
1353	1353	653
1354	1354	654
1355	1355	655
1356	1356	656
1357	1357	657
1358	1358	658
1359	1359	659
1360	1360	660
1361	1361	661
1362	1362	662
1363	1363	663
1364	1364	664
1365	1365	665
1366	1366	666
1367	1367	667
1368	1368	668
1369	1369	669
1370	1370	670
1371	1371	671
1372	1372	672 SB194 INTRODUCEDSB194 INTRODUCED
1373	1373	Page 25
1374	1374	only to reputable individuals, to associations whose members
1375	1375	are reputable individuals, or to reputable corporations
1376	1376	organized under the laws of this state or duly qualified
1377	1377	thereunder to do business in Alabama, or, in the case of
1378	1378	manufacturers, duly registered under the laws of Alabama, and
1379	1379	then only when it appears that all officers and directors of
1380	1380	the corporation are reputable individuals.
1381	1381	(c)(1) In addition to all other requirements, an
1382	1382	applicant for a license under this section shall submit to the
1383	1383	board a form, sworn to by the applicant, providing written
1384	1384	consent from the applicant for the release of criminal history
1385	1385	background information. The form shall also require the
1386	1386	applicant's name, date of birth, and Social Security number
1387	1387	for completion of a criminal history background check.
1388	1388	(2) An applicant shall provide the board with two
1389	1389	complete functional sets of fingerprints, either cards or
1390	1390	electronic, properly executed by a criminal justice agency or
1391	1391	an individual properly trained in fingerprinting techniques.
1392	1392	The fingerprints and form shall be submitted by the board to
1393	1393	the State Bureau of Investigations, or any entity contracted
1394	1394	with, for the purposes of furnishing criminal background
1395	1395	checks. The State Bureau of Investigations or contracted
1396	1396	entity shall forward a copy of the applicant's prints to the
1397	1397	Federal Bureau of Investigation for a national criminal
1398	1398	background check. The applicant shall pay all costs associated
1399	1399	with the background checks required by this section.
1400	1400	(3) For purposes of this section, the term "applicant"
1401	1401	shall include every person who has any proprietary or profit
1402	1402	673
1403	1403	674
1404	1404	675
1405	1405	676
1406	1406	677
1407	1407	678
1408	1408	679
1409	1409	680
1410	1410	681
1411	1411	682
1412	1412	683
1413	1413	684
1414	1414	685
1415	1415	686
1416	1416	687
1417	1417	688
1418	1418	689
1419	1419	690
1420	1420	691
1421	1421	692
1422	1422	693
1423	1423	694
1424	1424	695
1425	1425	696
1426	1426	697
1427	1427	698
1428	1428	699
1429	1429	700 SB194 INTRODUCEDSB194 INTRODUCED
1430	1430	Page 26
1431	1431	interest of 10 percent or more in the licensed establishment,
1432	1432	but shall not include any public corporation whose shares are
1433	1433	traded on a recognized stock exchange.
1434	1434	(4) The board shall keep information received pursuant
1435	1435	to this section confidential, except that information received
1436	1436	and relied upon in denying the issuance of a license in this
1437	1437	state may be disclosed as may be necessary to support the
1438	1438	denial or when subpoenaed from a court.
1439	1439	(d) Every license issued under this code chapter shall
1440	1440	be constantly and conspicuously displayed on the licensed
1441	1441	premises.
1442	1442	(e) Each retail liquor license application must be
1443	1443	approved by the governing authority of the municipality if the
1444	1444	retailer is located in a municipality, or by the county
1445	1445	commission if the retailer is located in the county and
1446	1446	outside the limits of the municipality , before the board shall
1447	1447	have authority to grant the license.
1448	1448	(f) Any retailer may be granted licenses to maintain,
1449	1449	operate, or conduct any number of places for the sale of
1450	1450	alcoholic beverages, but a separate license must be secured
1451	1451	for each place where alcoholic beverages are sold. No retail
1452	1452	license issued under this code chapter shall be used for more
1453	1453	than one premises, nor for separate types of operation on the
1454	1454	same premises. Provided, however, any such licensed retail
1455	1455	operation existing on May 14, 2009, and operating based on
1456	1456	dual licenses, both a club or lounge license and a restaurant
1457	1457	license, on the same premises shall be exempt from the
1458	1458	requirement of the preceding sentence and may continue to
1459	1459	701
1460	1460	702
1461	1461	703
1462	1462	704
1463	1463	705
1464	1464	706
1465	1465	707
1466	1466	708
1467	1467	709
1468	1468	710
1469	1469	711
1470	1470	712
1471	1471	713
1472	1472	714
1473	1473	715
1474	1474	716
1475	1475	717
1476	1476	718
1477	1477	719
1478	1478	720
1479	1479	721
1480	1480	722
1481	1481	723
1482	1482	724
1483	1483	725
1484	1484	726
1485	1485	727
1486	1486	728 SB194 INTRODUCEDSB194 INTRODUCED
1487	1487	Page 27
1488	1488	operate under such dual licenses. Any rule adopted by the
1489	1489	board relating to the requirements concerning dual licenses,
1490	1490	both a club or lounge license and a restaurant license, shall
1491	1491	not apply to any retail operation existing on May 14, 2009.
1492	1492	The aforementioned rules shall include, but not be limited to,
1493	1493	the maintenance of separate books, separate entrances, and
1494	1494	separate inventories. Each premises must have a separate
1495	1495	retail license. Where more than one retail operation is
1496	1496	located within the same building, each operation under a
1497	1497	separate or different ownership is required to obtain a
1498	1498	separate retail license; and where more than one type of
1499	1499	retail operation located within the same building is operated
1500	1500	by the same licensee, the licensee must have a license for
1501	1501	each type of retail operation. Provided, there shall be no
1502	1502	licenses issued by the board for the sale of liquor, beer, or
1503	1503	wine by rolling stores.
1504	1504	(g) No retailer shall sell any alcoholic beverages for
1505	1505	consumption on the licensed premises except in a room or rooms
1506	1506	or place on the licensed premises at all times accessible to
1507	1507	the use and accommodation of the general public; but this
1508	1508	section shall not be interpreted to prevent a hotel or club
1509	1509	licensee from selling alcoholic beverages in any room of the
1510	1510	hotel or club house occupied by a bona fide registered guest
1511	1511	or member or private party entitled to purchase the same.
1512	1512	(h) All beer, except draft or keg beer, sold by
1513	1513	retailers must be sold or dispensed in bottles, cans, or other
1514	1514	containers not to exceed 25.4 ounces. All wine sold by
1515	1515	retailers for off-premises consumption must be sold or
1516	1516	729
1517	1517	730
1518	1518	731
1519	1519	732
1520	1520	733
1521	1521	734
1522	1522	735
1523	1523	736
1524	1524	737
1525	1525	738
1526	1526	739
1527	1527	740
1528	1528	741
1529	1529	742
1530	1530	743
1531	1531	744
1532	1532	745
1533	1533	746
1534	1534	747
1535	1535	748
1536	1536	749
1537	1537	750
1538	1538	751
1539	1539	752
1540	1540	753
1541	1541	754
1542	1542	755
1543	1543	756 SB194 INTRODUCEDSB194 INTRODUCED
1544	1544	Page 28
1545	1545	dispensed in bottles or other containers in accordance with
1546	1546	the standards of fill specified in the then effective
1547	1547	standards of fill for wine prescribed by the U.S. Treasury
1548	1548	Department.
1549	1549	(i) Draft or keg beer may be sold or dispensed within
1550	1550	this state within those counties in which and in the manner in
1551	1551	which the sale of draft or keg beer was authorized by law on
1552	1552	September 30, 1980, or in which the sale of draft or keg beer
1553	1553	is hereafter authorized by law. In rural communities with a
1554	1554	predominantly foreign population, after the payment of the tax
1555	1555	imposed by this title, draft or keg beer may be sold or
1556	1556	dispensed by special permit from the board, when, in the
1557	1557	judgment of the board, the use and consumption of draft or keg
1558	1558	beer is in accordance with the habit and customs of the people
1559	1559	of any such rural community. The board may grant to any civic
1560	1560	center authority or its franchisee or concessionaire, to which
1561	1561	the board may have issued or may simultaneously issue a retail
1562	1562	license under the provisions of this code, a revocable
1563	1563	temporary permit to sell or dispense in any part of its civic
1564	1564	center, for consumption therein, draft or keg beer. Either
1565	1565	such permit shall be promptly revoked by the board if, in its
1566	1566	judgment, the same tends to create intemperance or is
1567	1567	prejudicial to the welfare, health, peace, temperance, and
1568	1568	safety of the people of the community or of the state.
1569	1569	(j) No importer shall sell alcoholic beverages to any
1570	1570	person other than a wholesaler licensee, or sell to a
1571	1571	wholesaler licensee any brand or brands of alcoholic beverages
1572	1572	for sale or distribution in this state, except where the
1573	1573	757
1574	1574	758
1575	1575	759
1576	1576	760
1577	1577	761
1578	1578	762
1579	1579	763
1580	1580	764
1581	1581	765
1582	1582	766
1583	1583	767
1584	1584	768
1585	1585	769
1586	1586	770
1587	1587	771
1588	1588	772
1589	1589	773
1590	1590	774
1591	1591	775
1592	1592	776
1593	1593	777
1594	1594	778
1595	1595	779
1596	1596	780
1597	1597	781
1598	1598	782
1599	1599	783
1600	1600	784 SB194 INTRODUCEDSB194 INTRODUCED
1601	1601	Page 29
1602	1602	importer has been granted written authorization from the
1603	1603	manufacturer thereof to import and sell the brand or brands to
1604	1604	be sold in this state, which authorization is on file with the
1605	1605	board.
1606	1606	(k) No wholesaler shall maintain or operate any place
1607	1607	where sales are made other than that for which the wholesale
1608	1608	license is granted; provided, however, a wholesaler may be
1609	1609	licensed to sell and distribute liquor, wine, and beer, and
1610	1610	mixed spirit beverages . No wholesaler shall maintain any place
1611	1611	for the storage of liquor, wine, or beer, or mixed spirit
1612	1612	beverages unless the same has been approved by the board. No
1613	1613	wholesaler license shall be issued for any premises in any
1614	1614	part of which there is operated any retail license for the
1615	1615	sale of alcoholic beverages.
1616	1616	(l) Licenses issued under this code chapter may not be
1617	1617	assigned. The board may transfer any license from one person
1618	1618	to another, or from one place to another within the same
1619	1619	governing jurisdiction, or both, as the board may determine;
1620	1620	but no transfers shall be made to a person who would not have
1621	1621	been eligible to receive the license originally, nor for the
1622	1622	transaction of business at a place for which the license could
1623	1623	not originally have been issued lawfully.
1624	1624	(m) Every applicant for a transfer of a license shall
1625	1625	file a written application with the board within such time as
1626	1626	the board shall fix in its rules. Whenever any license is
1627	1627	transferred, there shall be collected a filing fee of fifty
1628	1628	dollars ($50), to be paid to the board, and the board shall
1629	1629	pay the fee into the State Treasury to the credit of the Beer
1630	1630	785
1631	1631	786
1632	1632	787
1633	1633	788
1634	1634	789
1635	1635	790
1636	1636	791
1637	1637	792
1638	1638	793
1639	1639	794
1640	1640	795
1641	1641	796
1642	1642	797
1643	1643	798
1644	1644	799
1645	1645	800
1646	1646	801
1647	1647	802
1648	1648	803
1649	1649	804
1650	1650	805
1651	1651	806
1652	1652	807
1653	1653	808
1654	1654	809
1655	1655	810
1656	1656	811
1657	1657	812 SB194 INTRODUCEDSB194 INTRODUCED
1658	1658	Page 30
1659	1659	Tax and License Fund of the board.
1660	1660	(n) In the event that any person to whom a license has
1661	1661	been issued under the terms of this code chapter becomes
1662	1662	insolvent, makes an assignment for the benefit of creditors,
1663	1663	or is adjudicated as bankrupt by either voluntary or
1664	1664	involuntary action, the license of the person shall
1665	1665	immediately terminate and be cancelled without any action on
1666	1666	the part of the board, and there shall be no refund made, or
1667	1667	credit given, for the unused portion of the license fee for
1668	1668	the remainder of the license year for which the license was
1669	1669	granted. Thereafter, no license shall be issued by the board
1670	1670	for the premises, wherein the license was conducted, to any
1671	1671	assignee, committee, trustee, receiver, or successor of the
1672	1672	licensee until a hearing has been held by the board as in the
1673	1673	case of a new application for license. In all such cases, the
1674	1674	board shall have the sole and final discretion as to the
1675	1675	propriety of the issuance of a license for the premises,
1676	1676	including the time it shall issue , and the period for which it
1677	1677	shall be issued, and shall have the further power to impose
1678	1678	conditions under which the licensed premises shall be
1679	1679	conducted."
1680	1680	Section 7. Mixed spirit beverages, as defined in
1681	1681	Section 28-3-1, Code of Alabama 1975, shall be marketed in a
1682	1682	responsible and appropriate manner. The Alcoholic Beverage
1683	1683	Control Board may exercise its discretion to deny labels it
1684	1684	considers objectionable. All labels must conform to rules of
1685	1685	the board regarding advertising, product placement, and
1686	1686	package warning signage. The board, on a case by case basis,
1687	1687	813
1688	1688	814
1689	1689	815
1690	1690	816
1691	1691	817
1692	1692	818
1693	1693	819
1694	1694	820
1695	1695	821
1696	1696	822
1697	1697	823
1698	1698	824
1699	1699	825
1700	1700	826
1701	1701	827
1702	1702	828
1703	1703	829
1704	1704	830
1705	1705	831
1706	1706	832
1707	1707	833
1708	1708	834
1709	1709	835
1710	1710	836
1711	1711	837
1712	1712	838
1713	1713	839
1714	1714	840 SB194 INTRODUCEDSB194 INTRODUCED
1715	1715	Page 31
1716	1716	may require certain products that, as labeled, pose a risk of
1717	1717	misleading or deceiving the public to believe that the
1718	1718	products are non-alcoholic products, to be sold only at liquor
1719	1719	stores, as defined in Section 28-3-1, Code of Alabama 1975, or
1720	1720	establishments that maintain a lounge retail liquor – Class I
1721	1721	or Class II license.
1722	1722	Section 8. Chapter 8B, commencing with Section 28-8B-1,
1723	1723	is added to Title 28 of the Code of Alabama 1975, to read as
1724	1724	follows:
1725	1725	Chapter 8B
1726	1726	§28-8B-1
1727	1727	(a) The Legislature hereby finds and declares that this
1728	1728	chapter is enacted pursuant to the authority granted to the
1729	1729	state under the Twenty-First Amendment to the United States
1730	1730	Constitution, the powers reserved to the state under the Tenth
1731	1731	Amendment to the United States Constitution, and the inherent
1732	1732	powers of the state under the Constitution of Alabama of 2022,
1733	1733	in order to regulate the traffic of alcoholic beverages and to
1734	1734	substitute the regulations and oversight established in this
1735	1735	chapter for the application of federal and state antitrust
1736	1736	laws that otherwise would apply to any potential
1737	1737	anti-competitive effects of this title. For the avoidance of
1738	1738	doubt, the intent of the Legislature is to maintain the
1739	1739	uniform three-tier system of control over the sale, purchase,
1740	1740	taxation, transportation, manufacture, consumption, and
1741	1741	possession of alcoholic beverages in the state to promote the
1742	1742	health, safety, and welfare of residents of this state by,
1743	1743	among other purposes, ensuring the state shall be able to
1744	1744	841
1745	1745	842
1746	1746	843
1747	1747	844
1748	1748	845
1749	1749	846
1750	1750	847
1751	1751	848
1752	1752	849
1753	1753	850
1754	1754	851
1755	1755	852
1756	1756	853
1757	1757	854
1758	1758	855
1759	1759	856
1760	1760	857
1761	1761	858
1762	1762	859
1763	1763	860
1764	1764	861
1765	1765	862
1766	1766	863
1767	1767	864
1768	1768	865
1769	1769	866
1770	1770	867
1771	1771	868 SB194 INTRODUCEDSB194 INTRODUCED
1772	1772	Page 32
1773	1773	register, audit, inspect, seize, recall, and test alcoholic
1774	1774	beverages shipped into, distributed, and sold throughout this
1775	1775	state; and this expression of the policy and intent of the
1776	1776	Legislature is intended to satisfy the clear articulation test
1777	1777	for state action immunity as has been established by the
1778	1778	United States Supreme Court in California Retail Liquor
1779	1779	Dealers Assn. v. Midcal Aluminum, Inc., et al.
1780	1780	(b) If any provision of this chapter, or its
1781	1781	application to any person or circumstance, is determined by a
1782	1782	court to be invalid or unconstitutional, that provision shall
1783	1783	be stricken and the remaining provisions shall be construed in
1784	1784	accordance with the intent of the Legislature to further limit
1785	1785	rather than expand commerce in alcoholic beverages, including
1786	1786	by prohibiting any commerce in alcoholic beverages not
1787	1787	expressly authorized, and to enhance strict regulatory control
1788	1788	over taxation, distribution, and sale of alcoholic beverages
1789	1789	through the existing uniform system of regulation of alcoholic
1790	1790	beverages.
1791	1791	§28-8B-2
1792	1792	As used in this chapter, the following terms have the
1793	1793	following meanings:
1794	1794	(1) AGREEMENT. Any agreement between a wholesaler and a
1795	1795	supplier, whether oral or written, whereby a wholesaler is
1796	1796	granted the right to purchase and sell a brand or brands of
1797	1797	mixed spirit beverages sold by a supplier.
1798	1798	(2) ANCILLARY BUSINESS. A business owned by a
1799	1799	wholesaler, or by a substantial partner of a wholesaler, the
1800	1800	primary business of which is directly related to the
1801	1801	869
1802	1802	870
1803	1803	871
1804	1804	872
1805	1805	873
1806	1806	874
1807	1807	875
1808	1808	876
1809	1809	877
1810	1810	878
1811	1811	879
1812	1812	880
1813	1813	881
1814	1814	882
1815	1815	883
1816	1816	884
1817	1817	885
1818	1818	886
1819	1819	887
1820	1820	888
1821	1821	889
1822	1822	890
1823	1823	891
1824	1824	892
1825	1825	893
1826	1826	894
1827	1827	895
1828	1828	896 SB194 INTRODUCEDSB194 INTRODUCED
1829	1829	Page 33
1830	1830	transporting, storing, or marketing of the brand or brands of
1831	1831	mixed spirit beverages of a supplier with whom the wholesaler
1832	1832	has an agreement; or a business owned by a wholesaler, a
1833	1833	substantial stockholder of a wholesaler, or a substantial
1834	1834	partner of a wholesaler that recycles empty beverage
1835	1835	containers.
1836	1836	(3) DESIGNATED MEMBER. The spouse, child, grandchild,
1837	1837	parent, brother, or sister of a deceased individual who owned
1838	1838	an interest, including a controlling interest, in a
1839	1839	wholesaler; or any person who inherits the deceased
1840	1840	individual's ownership interest in the wholesaler under the
1841	1841	terms of the deceased individual's will, or under the laws of
1842	1842	intestate succession of this state; or any person who or
1843	1843	entity which has otherwise by designation in writing by the
1844	1844	deceased individual, succeeded the deceased individual in the
1845	1845	wholesaler's business, or has succeeded to the deceased
1846	1846	individual's ownership interest in the wholesaler pursuant to
1847	1847	a written contract or instrument; and also includes the
1848	1848	appointed and qualified personal representative and the
1849	1849	testamentary trustee of a deceased individual owning an
1850	1850	ownership interest in a wholesaler. Designated member also
1851	1851	includes a person appointed by the court as the guardian or
1852	1852	conservator of the property of an incapacitated individual
1853	1853	owning an ownership interest in a wholesaler.
1854	1854	(4) GOOD FAITH. Honesty in fact and the observance of
1855	1855	reasonable commercial standards of fair dealing in the trade,
1856	1856	as defined in and interpreted under the Uniform Commercial
1857	1857	Code, Section 7-2-103, Code of Alabama 1975.
1858	1858	897
1859	1859	898
1860	1860	899
1861	1861	900
1862	1862	901
1863	1863	902
1864	1864	903
1865	1865	904
1866	1866	905
1867	1867	906
1868	1868	907
1869	1869	908
1870	1870	909
1871	1871	910
1872	1872	911
1873	1873	912
1874	1874	913
1875	1875	914
1876	1876	915
1877	1877	916
1878	1878	917
1879	1879	918
1880	1880	919
1881	1881	920
1882	1882	921
1883	1883	922
1884	1884	923
1885	1885	924 SB194 INTRODUCEDSB194 INTRODUCED
1886	1886	Page 34
1887	1887	(5) REASONABLE QUALIFICATIONS. The standard of the
1888	1888	reasonable criteria established and consistently used by the
1889	1889	respective supplier for Alabama wholesalers that entered into,
1890	1890	continued, or renewed an agreement with the supplier during a
1891	1891	period of 24 months prior to the proposed transfer of the
1892	1892	wholesaler's business, or for Alabama wholesalers who have
1893	1893	changed managers or designated managers during a period of 24
1894	1894	months prior to the proposed change in manager or successor
1895	1895	manager of the wholesaler's business.
1896	1896	(6) RETALIATORY ACTION. Includes, but is not limited
1897	1897	to, the refusal to continue an agreement, or a material
1898	1898	reduction in the quality of service or in the quantity of
1899	1899	products available to a wholesaler under an agreement, which
1900	1900	refusal or reduction is not made in good faith.
1901	1901	(7) SALES TERRITORY. An area of exclusive sales
1902	1902	responsibility for the brand or brands of mixed spirit
1903	1903	beverages sold by a supplier as designated by an agreement.
1904	1904	(8) SUBSTANTIAL STOCKHOLDER or SUBSTANTIAL PARTNER. A
1905	1905	stockholder of or partner in the wholesaler who owns an
1906	1906	interest of 25 percent or more of the partnership or of the
1907	1907	capital stock of a corporate wholesaler.
1908	1908	(9) SUPPLIER. A manufacturer or importer of mixed
1909	1909	spirit beverages licensed by the board.
1910	1910	(10) TRANSFER OF WHOLESALER'S BUSINESS. The voluntary
1911	1911	sale, assignment, or other transfer of all or control of the
1912	1912	business, or all or substantially all of the assets of the
1913	1913	wholesaler, or all or control of the capital stock of the
1914	1914	wholesaler, including without limitation the sale or other
1915	1915	925
1916	1916	926
1917	1917	927
1918	1918	928
1919	1919	929
1920	1920	930
1921	1921	931
1922	1922	932
1923	1923	933
1924	1924	934
1925	1925	935
1926	1926	936
1927	1927	937
1928	1928	938
1929	1929	939
1930	1930	940
1931	1931	941
1932	1932	942
1933	1933	943
1934	1934	944
1935	1935	945
1936	1936	946
1937	1937	947
1938	1938	948
1939	1939	949
1940	1940	950
1941	1941	951
1942	1942	952 SB194 INTRODUCEDSB194 INTRODUCED
1943	1943	Page 35
1944	1944	transfer of capital stock or assets by merger, consolidation,
1945	1945	or dissolution, or of the capital stock of the parent
1946	1946	corporation, or of the capital stock or beneficial ownership
1947	1947	of any other entity owning or controlling the wholesaler.
1948	1948	(11) WHOLESALER. A wholesaler of mixed spirit beverages
1949	1949	licensed by the board.
1950	1950	§28-8B-3
1951	1951	(a) This chapter does not apply to regulation of beer
1952	1952	or wine franchises.
1953	1953	(b) Nothing in this chapter shall be deemed to repeal
1954	1954	or amend any existing beer or wine franchise laws. This
1955	1955	chapter is intended to provide franchise regulation for mixed
1956	1956	spirit beverages, and to leave in effect and unchanged any
1957	1957	local or state franchise laws existing on the effective date
1958	1958	of this act.
1959	1959	(c) Notwithstanding this chapter, including Section
1960	1960	28-8B-4, the board shall have the authority to purchase mixed
1961	1961	spirit beverages directly from the manufacturer and sell these
1962	1962	products to retail customers. This will maintain the
1963	1963	anti-monopoly goals of the three-tier system. The board is
1964	1964	exempt from the operation of this chapter or any other
1965	1965	franchise law; provided, the board, as a wholesaler, shall
1966	1966	only distribute mixed spirit beverages to liquor stores.
1967	1967	§28-8B-4
1968	1968	(a) Each supplier of mixed spirit beverages licensed by
1969	1969	the board to sell its mixed spirit beverages within the State
1970	1970	of Alabama shall sell its mixed spirit beverages only through
1971	1971	wholesaler licensees of the board and shall grant in writing
1972	1972	953
1973	1973	954
1974	1974	955
1975	1975	956
1976	1976	957
1977	1977	958
1978	1978	959
1979	1979	960
1980	1980	961
1981	1981	962
1982	1982	963
1983	1983	964
1984	1984	965
1985	1985	966
1986	1986	967
1987	1987	968
1988	1988	969
1989	1989	970
1990	1990	971
1991	1991	972
1992	1992	973
1993	1993	974
1994	1994	975
1995	1995	976
1996	1996	977
1997	1997	978
1998	1998	979
1999	1999	980 SB194 INTRODUCEDSB194 INTRODUCED
2000	2000	Page 36
2001	2001	to each of its wholesalers an exclusive sales territory in
2002	2002	accordance with Chapter 8.
2003	2003	(b) A licensed retailer may not purchase mixed spirit
2004	2004	beverages from any entity other than the licensed wholesaler
2005	2005	designated by the manufacturer of the mixed spirit beverages.
2006	2006	§28-8B-5
2007	2007	A supplier shall not do any of the following:
2008	2008	(1) Fail to provide each wholesaler of the supplier's
2009	2009	brand or brands with a written agreement that contains in
2010	2010	total the supplier's agreement with each wholesaler and
2011	2011	designates a specific exclusive sales territory. No part of
2012	2012	this chapter shall prevent a supplier from appointing, one
2013	2013	time for a period not to exceed 90 days, a wholesaler to
2014	2014	temporarily service a sales territory not designated to
2015	2015	another wholesaler, until such time as a wholesaler is
2016	2016	appointed by the supplier; and the wholesaler who is
2017	2017	designated to service the sales territory during this period
2018	2018	of temporary service shall not be in violation of this
2019	2019	chapter, and, with respect to the temporary service territory,
2020	2020	shall not have any of the rights provided under Sections
2021	2021	28-8B-7 and 28-8B-9.
2022	2022	(2) Fix, maintain, or establish the price at which a
2023	2023	wholesaler shall sell any mixed spirit beverages.
2024	2024	(3) Enter into an additional agreement with any other
2025	2025	wholesaler for, or to sell to any other wholesaler, the same
2026	2026	brand or brands of mixed spirit beverages in the same
2027	2027	territory or any portion thereof, or to sell directly to any
2028	2028	retailer in this state.
2029	2029	981
2030	2030	982
2031	2031	983
2032	2032	984
2033	2033	985
2034	2034	986
2035	2035	987
2036	2036	988
2037	2037	989
2038	2038	990
2039	2039	991
2040	2040	992
2041	2041	993
2042	2042	994
2043	2043	995
2044	2044	996
2045	2045	997
2046	2046	998
2047	2047	999
2048	2048	1000
2049	2049	1001
2050	2050	1002
2051	2051	1003
2052	2052	1004
2053	2053	1005
2054	2054	1006
2055	2055	1007
2056	2056	1008 SB194 INTRODUCEDSB194 INTRODUCED
2057	2057	Page 37
2058	2058	(4) Coerce, or attempt to coerce, any wholesaler to
2059	2059	accept delivery of any mixed spirit beverages or other
2060	2060	commodity which has not been ordered by the wholesaler.
2061	2061	Provided, however, a supplier may impose reasonable inventory
2062	2062	requirements upon a wholesaler if the requirements are made in
2063	2063	good faith and are generally applied to other similarly
2064	2064	situated wholesalers having an agreement with the supplier.
2065	2065	(5) Coerce, or attempt to coerce, any wholesaler to
2066	2066	accept delivery of any mixed spirit beverages or other
2067	2067	commodity ordered by a wholesaler if the order was cancelled
2068	2068	by the wholesaler.
2069	2069	(6) Coerce, or attempt to coerce, any wholesaler to do
2070	2070	any illegal act or to violate any law or any regulation by
2071	2071	threatening to amend, modify, cancel, terminate, or refuse to
2072	2072	review any agreement existing between the supplier and
2073	2073	wholesaler.
2074	2074	(7) Require a wholesaler to assent to any condition,
2075	2075	stipulation, or provision limiting the wholesaler's right to
2076	2076	sell the brand or brands of mixed spirit beverages or other
2077	2077	products of any other supplier unless the acquisition of the
2078	2078	brand or brands or products of another supplier would
2079	2079	materially impair or adversely affect the wholesaler's quality
2080	2080	of service, sales, or ability to compete effectively in
2081	2081	representing the brand or brands of the supplier presently
2082	2082	being sold by the wholesaler. The supplier shall have the
2083	2083	burden of proving that such acquisition of such other brand or
2084	2084	brands or products would have such effect.
2085	2085	(8) Require a wholesaler to purchase one or more brands
2086	2086	1009
2087	2087	1010
2088	2088	1011
2089	2089	1012
2090	2090	1013
2091	2091	1014
2092	2092	1015
2093	2093	1016
2094	2094	1017
2095	2095	1018
2096	2096	1019
2097	2097	1020
2098	2098	1021
2099	2099	1022
2100	2100	1023
2101	2101	1024
2102	2102	1025
2103	2103	1026
2104	2104	1027
2105	2105	1028
2106	2106	1029
2107	2107	1030
2108	2108	1031
2109	2109	1032
2110	2110	1033
2111	2111	1034
2112	2112	1035
2113	2113	1036 SB194 INTRODUCEDSB194 INTRODUCED
2114	2114	Page 38
2115	2115	of mixed spirit beverages or other products in order for the
2116	2116	wholesaler to purchase another brand or brands of mixed spirit
2117	2117	beverages for any reason.
2118	2118	(9) Request a wholesaler to submit audited profit and
2119	2119	loss statements, balance sheets, or financial records as a
2120	2120	condition of renewal or continuation of an agreement.
2121	2121	(10) Withhold delivery of mixed spirit beverages
2122	2122	ordered by a wholesaler or change a wholesaler's quota of a
2123	2123	brand or brands if the withholding or change is not made in
2124	2124	good faith.
2125	2125	(11) Require a wholesaler by any means directly to
2126	2126	participate in or contribute to any local or national
2127	2127	advertising fund controlled directly or indirectly by a
2128	2128	supplier.
2129	2129	(12) Take any retaliatory action against a wholesaler
2130	2130	that files a complaint regarding an alleged violation by the
2131	2131	supplier of federal, state, or local law or an administrative
2132	2132	rule.
2133	2133	(13) Require or prohibit, without just and reasonable
2134	2134	cause, any change in the manager or successor manager of any
2135	2135	wholesaler who has been approved by the supplier. Should a
2136	2136	wholesaler change an approved manager or successor manager, a
2137	2137	supplier shall not require or prohibit the change unless the
2138	2138	person selected by the wholesaler fails to meet the
2139	2139	nondiscriminatory, material, and reasonable standards and
2140	2140	qualifications for managers of Alabama wholesalers of the
2141	2141	supplier which previously have been consistently applied to
2142	2142	Alabama wholesalers by the supplier. The supplier shall have
2143	2143	1037
2144	2144	1038
2145	2145	1039
2146	2146	1040
2147	2147	1041
2148	2148	1042
2149	2149	1043
2150	2150	1044
2151	2151	1045
2152	2152	1046
2153	2153	1047
2154	2154	1048
2155	2155	1049
2156	2156	1050
2157	2157	1051
2158	2158	1052
2159	2159	1053
2160	2160	1054
2161	2161	1055
2162	2162	1056
2163	2163	1057
2164	2164	1058
2165	2165	1059
2166	2166	1060
2167	2167	1061
2168	2168	1062
2169	2169	1063
2170	2170	1064 SB194 INTRODUCEDSB194 INTRODUCED
2171	2171	Page 39
2172	2172	the burden of proving that a person fails to meet the
2173	2173	standards and qualifications which are nondiscriminatory,
2174	2174	material, and reasonable and have been consistently applied to
2175	2175	Alabama wholesalers.
2176	2176	(14) Upon written notice of intent to transfer the
2177	2177	wholesaler's business, interfere with, prevent, or
2178	2178	unreasonably delay, for longer than 30 days after the receipt
2179	2179	of the notice, the transfer of the wholesaler's business if
2180	2180	the proposed transferee is a designated member.
2181	2181	(15) Upon written notice of intent to transfer the
2182	2182	wholesaler's business to a person other than a designated
2183	2183	member, withhold consent to or approval of or unreasonably
2184	2184	delay, for longer than 30 days after receipt of the notice,
2185	2185	the transfer of a wholesaler's business if the proposed
2186	2186	transferee meets the nondiscriminatory, material, and
2187	2187	reasonable qualifications and standards required by the
2188	2188	supplier for Alabama wholesalers. The supplier shall have the
2189	2189	burden of proving that the proposed transferee does not meet
2190	2190	such standards and qualifications which are nondiscriminatory,
2191	2191	material, and reasonable and have been consistently applied to
2192	2192	Alabama wholesalers.
2193	2193	(16) Restrict or inhibit, directly or indirectly, the
2194	2194	right of free association among wholesalers for any lawful
2195	2195	purpose.
2196	2196	§28-8B-6
2197	2197	A wholesaler shall not do any of the following:
2198	2198	(1) Fail to devote reasonable efforts and resources,
2199	2199	within its supplier-designated sales territory, to the sale
2200	2200	1065
2201	2201	1066
2202	2202	1067
2203	2203	1068
2204	2204	1069
2205	2205	1070
2206	2206	1071
2207	2207	1072
2208	2208	1073
2209	2209	1074
2210	2210	1075
2211	2211	1076
2212	2212	1077
2213	2213	1078
2214	2214	1079
2215	2215	1080
2216	2216	1081
2217	2217	1082
2218	2218	1083
2219	2219	1084
2220	2220	1085
2221	2221	1086
2222	2222	1087
2223	2223	1088
2224	2224	1089
2225	2225	1090
2226	2226	1091
2227	2227	1092 SB194 INTRODUCEDSB194 INTRODUCED
2228	2228	Page 40
2229	2229	and distribution of all of the supplier's brands of mixed
2230	2230	spirit beverages which the wholesaler has been granted the
2231	2231	right to sell or distribute.
2232	2232	(2)a. Except as provided in paragraph b., sell or
2233	2233	deliver mixed spirit beverages to a retail licensee located
2234	2234	outside the sales territory designated to the wholesaler by
2235	2235	the supplier of a particular brand or brands of mixed spirit
2236	2236	beverages.
2237	2237	b. Notwithstanding paragraph a., during periods of
2238	2238	temporary service interruptions impacting a particular sales
2239	2239	territory, a wholesaler who normally services the impacted
2240	2240	sales territory shall file with the board and give to the
2241	2241	affected supplier written notice designating the specific
2242	2242	licensed wholesaler or wholesalers, not disapproved by the
2243	2243	supplier, who will service the sales territory during the
2244	2244	period of temporary service interruption and the approximate
2245	2245	length of time for the service interruption. Each wholesaler
2246	2246	designated to temporarily service the sales territory shall be
2247	2247	a wholesaler who has a current written agreement with the
2248	2248	supplier for the brand or brands affected. When the temporary
2249	2249	service interruption is over, the wholesaler who normally
2250	2250	services the sales territory shall notify in writing the
2251	2251	board, the supplier, and the wholesaler, or wholesalers,
2252	2252	servicing the sales territory on a temporary basis of this
2253	2253	fact, and any wholesaler servicing the sales territory on a
2254	2254	temporary basis shall cease servicing the sales territory upon
2255	2255	receipt of notice. A wholesaler who is designated to service
2256	2256	the impacted sales territory during the period of temporary
2257	2257	1093
2258	2258	1094
2259	2259	1095
2260	2260	1096
2261	2261	1097
2262	2262	1098
2263	2263	1099
2264	2264	1100
2265	2265	1101
2266	2266	1102
2267	2267	1103
2268	2268	1104
2269	2269	1105
2270	2270	1106
2271	2271	1107
2272	2272	1108
2273	2273	1109
2274	2274	1110
2275	2275	1111
2276	2276	1112
2277	2277	1113
2278	2278	1114
2279	2279	1115
2280	2280	1116
2281	2281	1117
2282	2282	1118
2283	2283	1119
2284	2284	1120 SB194 INTRODUCEDSB194 INTRODUCED
2285	2285	Page 41
2286	2286	service shall not be in violation of this chapter, and, with
2287	2287	respect to the temporary service territory, shall not have any
2288	2288	of the rights provided under Sections 28-8B-7 and 28-8B-9.
2289	2289	(3)a. Transfer the wholesaler's business without giving
2290	2290	the supplier written notice of intent to transfer the
2291	2291	wholesaler's business, and, where required by this section,
2292	2292	without receiving the supplier's approval for the proposed
2293	2293	transfer.
2294	2294	b. The consent or approval of the supplier shall not be
2295	2295	required of any transfer of the wholesaler's business to a
2296	2296	designated member, or any transfer of less than control of the
2297	2297	wholesaler's business. Provided, however, that the wholesaler
2298	2298	shall give the supplier written notice of any change in
2299	2299	ownership of the wholesaler.
2300	2300	§28-8B-7
2301	2301	(a) Notwithstanding any agreement and except as
2302	2302	otherwise provided for in this chapter, a supplier shall not
2303	2303	amend or modify an agreement; cause a wholesaler to resign
2304	2304	from an agreement; or cancel, terminate, fail to renew, or
2305	2305	refuse to continue under an agreement, unless, in any of the
2306	2306	foregoing cases, the supplier has complied with all of the
2307	2307	following:
2308	2308	(1) Has satisfied the applicable notice requirements of
2309	2309	subsection (c).
2310	2310	(2) Has acted in good faith.
2311	2311	(3) Has good cause for the amendment, modification,
2312	2312	cancellation, termination, nonrenewal, discontinuance, or
2313	2313	forced resignation.
2314	2314	1121
2315	2315	1122
2316	2316	1123
2317	2317	1124
2318	2318	1125
2319	2319	1126
2320	2320	1127
2321	2321	1128
2322	2322	1129
2323	2323	1130
2324	2324	1131
2325	2325	1132
2326	2326	1133
2327	2327	1134
2328	2328	1135
2329	2329	1136
2330	2330	1137
2331	2331	1138
2332	2332	1139
2333	2333	1140
2334	2334	1141
2335	2335	1142
2336	2336	1143
2337	2337	1144
2338	2338	1145
2339	2339	1146
2340	2340	1147
2341	2341	1148 SB194 INTRODUCEDSB194 INTRODUCED
2342	2342	Page 42
2343	2343	(b) For each amendment, modification, termination,
2344	2344	cancellation, nonrenewal, or discontinuance, the supplier
2345	2345	shall have the burden of proving that it has acted in good
2346	2346	faith, that the notice requirements under this section have
2347	2347	been complied with, and that there was good cause for the
2348	2348	amendment, modification, termination, cancellation,
2349	2349	nonrenewal, or discontinuance.
2350	2350	(c) Notwithstanding any agreement and except as
2351	2351	otherwise provided in this section, and in addition to the
2352	2352	time limits set forth in subdivision (d)(5), the supplier
2353	2353	shall furnish written notice of the amendment, modification,
2354	2354	termination, cancellation, nonrenewal, or discontinuance of an
2355	2355	agreement to the wholesaler not less than 60 days before the
2356	2356	effective date of the amendment, modification, termination,
2357	2357	cancellation, nonrenewal, or discontinuance. The notice shall
2358	2358	be by certified mail and shall contain all of the following:
2359	2359	(1) A statement of intention to amend, modify,
2360	2360	terminate, cancel, not renew, or discontinue the agreement.
2361	2361	(2) A statement of the reason for the amendment,
2362	2362	modification, termination, cancellation, nonrenewal, or
2363	2363	discontinuance.
2364	2364	(3) The date on which the amendment, modification,
2365	2365	termination, cancellation, nonrenewal, or discontinuance takes
2366	2366	effect.
2367	2367	(d) Notwithstanding any agreement, good cause shall
2368	2368	exist for the purposes of a termination, cancellation,
2369	2369	nonrenewal, or discontinuance under subdivision (a)(3) when
2370	2370	all of the following occur:
2371	2371	1149
2372	2372	1150
2373	2373	1151
2374	2374	1152
2375	2375	1153
2376	2376	1154
2377	2377	1155
2378	2378	1156
2379	2379	1157
2380	2380	1158
2381	2381	1159
2382	2382	1160
2383	2383	1161
2384	2384	1162
2385	2385	1163
2386	2386	1164
2387	2387	1165
2388	2388	1166
2389	2389	1167
2390	2390	1168
2391	2391	1169
2392	2392	1170
2393	2393	1171
2394	2394	1172
2395	2395	1173
2396	2396	1174
2397	2397	1175
2398	2398	1176 SB194 INTRODUCEDSB194 INTRODUCED
2399	2399	Page 43
2400	2400	(1) There is a failure by the wholesaler to comply with
2401	2401	a provision of the agreement which is both reasonable and of
2402	2402	material significance to the business relationship between the
2403	2403	wholesaler and the supplier.
2404	2404	(2) The supplier first acquired knowledge of the
2405	2405	failure described in subdivision (1) of this subsection not
2406	2406	more than 18 months before the date notification was given
2407	2407	pursuant to subdivision (a)(1).
2408	2408	(3) The wholesaler was given notice by the supplier of
2409	2409	failure to comply with the agreement.
2410	2410	(4) The wholesaler was afforded a reasonable
2411	2411	opportunity to assert good faith efforts to comply with the
2412	2412	agreement within the time limits as provided for in
2413	2413	subdivision (5).
2414	2414	(5) The wholesaler has been afforded 30 days in which
2415	2415	to submit a plan of corrective action to comply with the
2416	2416	agreement and an additional 120 days to cure the noncompliance
2417	2417	in accordance with the plan.
2418	2418	(e) Notwithstanding subsections (a) and (c), a supplier
2419	2419	may terminate, cancel, fail to renew, or discontinue an
2420	2420	agreement immediately upon written notice given in the manner
2421	2421	and containing information required by subsection (c) if any
2422	2422	of the following occur:
2423	2423	(1) Insolvency of the wholesaler, the filing of any
2424	2424	petition by or against the wholesaler under any bankruptcy or
2425	2425	receivership law, or the assignment for the benefit of
2426	2426	creditors or dissolution or liquidation of the wholesaler
2427	2427	which materially affects the wholesaler's ability to remain in
2428	2428	1177
2429	2429	1178
2430	2430	1179
2431	2431	1180
2432	2432	1181
2433	2433	1182
2434	2434	1183
2435	2435	1184
2436	2436	1185
2437	2437	1186
2438	2438	1187
2439	2439	1188
2440	2440	1189
2441	2441	1190
2442	2442	1191
2443	2443	1192
2444	2444	1193
2445	2445	1194
2446	2446	1195
2447	2447	1196
2448	2448	1197
2449	2449	1198
2450	2450	1199
2451	2451	1200
2452	2452	1201
2453	2453	1202
2454	2454	1203
2455	2455	1204 SB194 INTRODUCEDSB194 INTRODUCED
2456	2456	Page 44
2457	2457	business.
2458	2458	(2) Revocation or suspension of the wholesaler's state
2459	2459	or federal license by the appropriate regulatory agency
2460	2460	whereby the wholesaler cannot service the wholesaler's sales
2461	2461	territory for more than 61 days.
2462	2462	(3)a. The wholesaler, or partner or individual who owns
2463	2463	10 percent or more of the partnership or stock of a corporate
2464	2464	wholesaler, has been convicted of a felony under federal or
2465	2465	any state law which reasonably may adversely affect the good
2466	2466	will or the interest of the wholesaler or supplier.
2467	2467	b. Notwithstanding paragraph a., an existing
2468	2468	stockholder or stockholders, or partner or partners, or a
2469	2469	designated member or members subject to this chapter shall
2470	2470	have the right to purchase the partnership interest or the
2471	2471	stock of the offending partner or stockholder prior to the
2472	2472	conviction of the offending partner or stockholder. This
2473	2473	subdivision shall not apply if the sale is completed prior to
2474	2474	conviction.
2475	2475	(f) Notwithstanding subsections (a), (c), and (e), upon
2476	2476	not less than 15 days' prior written notice given in the
2477	2477	manner and containing the information required by subsection
2478	2478	(c), a supplier may terminate, cancel, fail to renew, or
2479	2479	discontinue an agreement if any of the following events occur:
2480	2480	(1) There was intentional fraudulent conduct relating
2481	2481	to a material matter on the part of the wholesaler in dealings
2482	2482	with the supplier; provides, however, the supplier shall have
2483	2483	the burden of proving intentional fraudulent conduct relating
2484	2484	to a material matter on the part of the wholesaler.
2485	2485	1205
2486	2486	1206
2487	2487	1207
2488	2488	1208
2489	2489	1209
2490	2490	1210
2491	2491	1211
2492	2492	1212
2493	2493	1213
2494	2494	1214
2495	2495	1215
2496	2496	1216
2497	2497	1217
2498	2498	1218
2499	2499	1219
2500	2500	1220
2501	2501	1221
2502	2502	1222
2503	2503	1223
2504	2504	1224
2505	2505	1225
2506	2506	1226
2507	2507	1227
2508	2508	1228
2509	2509	1229
2510	2510	1230
2511	2511	1231
2512	2512	1232 SB194 INTRODUCEDSB194 INTRODUCED
2513	2513	Page 45
2514	2514	(2) The wholesaler failed to confine to the designated
2515	2515	sales territory its sales of a brand or brands to retailers,
2516	2516	provided this subdivision does not apply if there is a dispute
2517	2517	between two or more wholesalers as to the boundaries of the
2518	2518	assigned territory and the boundary cannot be determined by a
2519	2519	reading of the description contained in the agreements between
2520	2520	the suppliers and the wholesalers.
2521	2521	(3) A wholesaler who has failed to pay for mixed spirit
2522	2522	beverages ordered and delivered in accordance with established
2523	2523	terms with the supplier fails to make full payment within two
2524	2524	business days after receipt of written notice of the
2525	2525	delinquency and demand for immediate payment from the
2526	2526	supplier.
2527	2527	(4) A wholesaler intentionally has made a transfer of
2528	2528	wholesaler's business, other than a transfer to a designated
2529	2529	member or pursuant to a loan agreement or debt instrument,
2530	2530	without prior written notice to the supplier, and has failed,
2531	2531	within 30 days from the receipt of written notice from the
2532	2532	supplier of its intent to terminate on the ground of such
2533	2533	transfer, to reverse the transfer of wholesaler's business.
2534	2534	(5) A wholesaler intentionally has made a transfer of
2535	2535	wholesaler's business other than a transfer to a designated
2536	2536	member, although the wholesaler, prior to the transfer, has
2537	2537	received from the supplier a timely notice of disapproval of
2538	2538	the transfer in accordance with this section.
2539	2539	(6) The wholesaler intentionally ceases, or ceases for
2540	2540	more than a period of 61 days, to carry on business with
2541	2541	respect to any of the supplier's brand or brands previously
2542	2542	1233
2543	2543	1234
2544	2544	1235
2545	2545	1236
2546	2546	1237
2547	2547	1238
2548	2548	1239
2549	2549	1240
2550	2550	1241
2551	2551	1242
2552	2552	1243
2553	2553	1244
2554	2554	1245
2555	2555	1246
2556	2556	1247
2557	2557	1248
2558	2558	1249
2559	2559	1250
2560	2560	1251
2561	2561	1252
2562	2562	1253
2563	2563	1254
2564	2564	1255
2565	2565	1256
2566	2566	1257
2567	2567	1258
2568	2568	1259
2569	2569	1260 SB194 INTRODUCEDSB194 INTRODUCED
2570	2570	Page 46
2571	2571	serviced by the wholesaler in its territory designated by the
2572	2572	supplier, unless the cessation is due to force majeure or to a
2573	2573	labor dispute and the wholesaler has made good faith efforts
2574	2574	to overcome such events. This subdivision shall affect only
2575	2575	that brand or brands with respect to which the wholesaler
2576	2576	ceased to carry on business.
2577	2577	(g) Notwithstanding subsections (a), (c), (e), and (f),
2578	2578	a supplier may terminate, cancel, not renew, or discontinue an
2579	2579	agreement upon not less than 30 days' prior written notice if
2580	2580	the supplier discontinues production or discontinues
2581	2581	distribution in this state of all brands sold by the supplier
2582	2582	to the wholesaler. Provided, however, nothing in this section
2583	2583	shall prohibit a supplier from doing either of the following:
2584	2584	(1) Upon not less than 30 days' notice, discontinuing
2585	2585	the distribution of any particular brand of mixed spirit
2586	2586	beverages.
2587	2587	(2) Conducting test marketing of a new brand of mixed
2588	2588	spirit beverages or of a brand of mixed spirit beverages which
2589	2589	is not currently being sold in this state, if the supplier has
2590	2590	notified the board in writing of its plan to test market. The
2591	2591	notice shall describe the market area in which the test shall
2592	2592	be conducted, the name or names of the wholesaler or
2593	2593	wholesalers who will be selling the mixed spirit beverages,
2594	2594	the name or names of the brand of mixed spirit beverages being
2595	2595	tested, and the period of time not to exceed 18 months during
2596	2596	which the testing will take place.
2597	2597	§28-8B-8
2598	2598	(a) Upon written notice of intent to transfer the
2599	2599	1261
2600	2600	1262
2601	2601	1263
2602	2602	1264
2603	2603	1265
2604	2604	1266
2605	2605	1267
2606	2606	1268
2607	2607	1269
2608	2608	1270
2609	2609	1271
2610	2610	1272
2611	2611	1273
2612	2612	1274
2613	2613	1275
2614	2614	1276
2615	2615	1277
2616	2616	1278
2617	2617	1279
2618	2618	1280
2619	2619	1281
2620	2620	1282
2621	2621	1283
2622	2622	1284
2623	2623	1285
2624	2624	1286
2625	2625	1287
2626	2626	1288 SB194 INTRODUCEDSB194 INTRODUCED
2627	2627	Page 47
2628	2628	wholesaler's business, any individual owning, or deceased
2629	2629	individual who owned, an interest in a wholesaler may transfer
2630	2630	the wholesaler's business to a designated member, or any other
2631	2631	person who meets the nondiscriminatory, material, and
2632	2632	reasonable qualifications and standards required by the
2633	2633	supplier for Alabama wholesalers. The consent or approval of
2634	2634	the supplier shall not be required of any transfer of the
2635	2635	wholesaler's business, including the assignment of
2636	2636	wholesaler's rights under the agreement, to a designated
2637	2637	member or shall not be withheld or unreasonably delayed to a
2638	2638	proposed transferee, other than a designated member, who meets
2639	2639	the nondiscriminatory, material, and reasonable qualifications
2640	2640	and standards. Provided, however, the supplier shall have the
2641	2641	burden of proving that the proposed transferee fails to meet
2642	2642	the qualifications and standards which are nondiscriminatory,
2643	2643	material, and reasonable and consistently applied to Alabama
2644	2644	wholesalers by the supplier. Provided, the designated member
2645	2645	or transferee shall in no event be qualified as a transferee
2646	2646	without the prior written approval or consent of the supplier,
2647	2647	where the proposed transferee shall have been involved in any
2648	2648	of the following:
2649	2649	(1) Insolvency filing of any voluntary or involuntary
2650	2650	petition under any bankruptcy or receivership law, or
2651	2651	execution of an assignment for the benefit of creditors.
2652	2652	(2) Revocation or suspension of an alcoholic beverage
2653	2653	license by the regulatory agency of the U.S. government or any
2654	2654	state, whereby service was interrupted for more than 61 days.
2655	2655	(3) Conviction of a felony under federal law, or the
2656	2656	1289
2657	2657	1290
2658	2658	1291
2659	2659	1292
2660	2660	1293
2661	2661	1294
2662	2662	1295
2663	2663	1296
2664	2664	1297
2665	2665	1298
2666	2666	1299
2667	2667	1300
2668	2668	1301
2669	2669	1302
2670	2670	1303
2671	2671	1304
2672	2672	1305
2673	2673	1306
2674	2674	1307
2675	2675	1308
2676	2676	1309
2677	2677	1310
2678	2678	1311
2679	2679	1312
2680	2680	1313
2681	2681	1314
2682	2682	1315
2683	2683	1316 SB194 INTRODUCEDSB194 INTRODUCED
2684	2684	Page 48
2685	2685	laws of any state which reasonably may adversely affect the
2686	2686	good will or interest of the wholesaler or supplier.
2687	2687	(4) The involuntary termination, cancellation,
2688	2688	nonrenewal, or discontinuance by a supplier of an agreement
2689	2689	for good cause.
2690	2690	(b) The supplier shall not interfere with, prevent, or
2691	2691	unreasonably delay the transfer of the wholesaler's business,
2692	2692	including an assignment of the wholesaler's rights under the
2693	2693	agreement, if the proposed transferee is a designated member,
2694	2694	or if the transferee other than a designated member meets the
2695	2695	nondiscriminatory, material, and reasonable qualifications
2696	2696	required by the supplier for Alabama wholesalers. Where the
2697	2697	transferee is other than a designated member, the supplier, in
2698	2698	good faith and for good cause related to the reasonable
2699	2699	qualifications, may refuse to accept the transfer of the
2700	2700	wholesaler's business or the assignment of the wholesaler's
2701	2701	rights under the agreement. The supplier shall have the burden
2702	2702	of proving that it has acted in good faith and that there was
2703	2703	good cause for failure to accept or consent to the transfer of
2704	2704	the wholesaler's business or the assignment of the
2705	2705	wholesaler's rights under the agreement.
2706	2706	§28-8B-9
2707	2707	(a) Except as otherwise provided for in this chapter, a
2708	2708	supplier that has amended, modified, cancelled, terminated, or
2709	2709	refused to renew any agreement; or has caused a wholesaler to
2710	2710	resign from any agreement; or has interfered with, prevented,
2711	2711	or unreasonably delayed, or where required by this chapter,
2712	2712	has withheld or unreasonably delayed consent to or approval
2713	2713	1317
2714	2714	1318
2715	2715	1319
2716	2716	1320
2717	2717	1321
2718	2718	1322
2719	2719	1323
2720	2720	1324
2721	2721	1325
2722	2722	1326
2723	2723	1327
2724	2724	1328
2725	2725	1329
2726	2726	1330
2727	2727	1331
2728	2728	1332
2729	2729	1333
2730	2730	1334
2731	2731	1335
2732	2732	1336
2733	2733	1337
2734	2734	1338
2735	2735	1339
2736	2736	1340
2737	2737	1341
2738	2738	1342
2739	2739	1343
2740	2740	1344 SB194 INTRODUCEDSB194 INTRODUCED
2741	2741	Page 49
2742	2742	of, any assignment or transfer of a wholesaler's business,
2743	2743	shall pay the wholesaler reasonable compensation for the
2744	2744	diminished value of the wholesaler's business, including any
2745	2745	ancillary business which has been negatively affected by the
2746	2746	act of the supplier. The value of the wholesaler's business or
2747	2747	ancillary business shall include, but not be limited to, any
2748	2748	good will. Provided, however, nothing contained in this
2749	2749	chapter shall give rise to a claim against the supplier or
2750	2750	wholesaler by any proposed purchaser of the wholesaler's
2751	2751	business.
2752	2752	(b) Should either party, at any time, determine that
2753	2753	mutual agreement on the amount of reasonable compensation
2754	2754	cannot be reached, the supplier or the wholesaler may send by
2755	2755	certified mail, return receipt requested, written notice to
2756	2756	the other party declaring its intention to proceed with
2757	2757	arbitration. Arbitration shall proceed only by mutual
2758	2758	agreement by both parties.
2759	2759	(c) Not more than 10 business days after the notice to
2760	2760	enter into arbitration has been delivered, the other party
2761	2761	shall send written notice to the requesting party declaring
2762	2762	its intention either to proceed or not to proceed with
2763	2763	arbitration. Should the other party fail to respond within the
2764	2764	10 business days, it shall be conclusively presumed that the
2765	2765	party shall have agreed to arbitration.
2766	2766	(d) The matter of determining the amount of
2767	2767	compensation, by agreement of the parties, may be submitted to
2768	2768	a three-member arbitration panel consisting of one
2769	2769	representative selected by the supplier but unassociated with
2770	2770	1345
2771	2771	1346
2772	2772	1347
2773	2773	1348
2774	2774	1349
2775	2775	1350
2776	2776	1351
2777	2777	1352
2778	2778	1353
2779	2779	1354
2780	2780	1355
2781	2781	1356
2782	2782	1357
2783	2783	1358
2784	2784	1359
2785	2785	1360
2786	2786	1361
2787	2787	1362
2788	2788	1363
2789	2789	1364
2790	2790	1365
2791	2791	1366
2792	2792	1367
2793	2793	1368
2794	2794	1369
2795	2795	1370
2796	2796	1371
2797	2797	1372 SB194 INTRODUCEDSB194 INTRODUCED
2798	2798	Page 50
2799	2799	the affected supplier; one wholesaler representative selected
2800	2800	by the wholesaler but unassociated with the wholesaler; and an
2801	2801	impartial arbitrator chosen as provided in this section.
2802	2802	(e) Not more than 10 business days after mutual
2803	2803	agreement of both parties has been reached to arbitrate, each
2804	2804	party shall designate, in writing, its one arbitrator
2805	2805	representative and the party initiating arbitration shall
2806	2806	request, in writing, a list of five arbitrators from the
2807	2807	American Arbitration Association or its successor and request
2808	2808	that the list shall be mailed to each party by certified mail,
2809	2809	return receipt requested. Not more than 10 business days after
2810	2810	the receipt of the list of five choices, the wholesaler
2811	2811	arbitrator and the supplier arbitrator shall strike and
2812	2812	disqualify up to two names each from the list. Should either
2813	2813	party fail to respond within 10 business days or should more
2814	2814	than one name remain after the strikes, the American
2815	2815	Arbitration Association shall make the selection of the
2816	2816	impartial arbitrator from the names not stricken from the
2817	2817	list.
2818	2818	(f) Not more than 30 days after the final selection of
2819	2819	the arbitration panel is made, the arbitration panel shall
2820	2820	convene to decide the dispute. The panel shall conclude the
2821	2821	arbitration within 20 days after the arbitration panel
2822	2822	convenes and shall render a decision by majority vote of the
2823	2823	arbitrators within 20 days from the conclusion of the
2824	2824	arbitration. The award of the arbitration panel shall be final
2825	2825	and binding on the parties as to the amount of compensation
2826	2826	for the diminished value.
2827	2827	1373
2828	2828	1374
2829	2829	1375
2830	2830	1376
2831	2831	1377
2832	2832	1378
2833	2833	1379
2834	2834	1380
2835	2835	1381
2836	2836	1382
2837	2837	1383
2838	2838	1384
2839	2839	1385
2840	2840	1386
2841	2841	1387
2842	2842	1388
2843	2843	1389
2844	2844	1390
2845	2845	1391
2846	2846	1392
2847	2847	1393
2848	2848	1394
2849	2849	1395
2850	2850	1396
2851	2851	1397
2852	2852	1398
2853	2853	1399
2854	2854	1400 SB194 INTRODUCEDSB194 INTRODUCED
2855	2855	Page 51
2856	2856	(g) The cost of the impartial arbitrator, the
2857	2857	stenographer, and the meeting site shall be equally divided
2858	2858	between the wholesaler and the supplier. All other costs shall
2859	2859	be paid by the party incurring them.
2860	2860	(h) After both parties have agreed to arbitrate, should
2861	2861	either party, except by mutual agreement, fail to abide by the
2862	2862	time limitations as prescribed in subsections (c), (e), and
2863	2863	(f), or fail or refuse to make the selection of any
2864	2864	arbitrators, or fail to participate in the arbitration
2865	2865	hearings, the other party shall make the selection of its
2866	2866	arbitrator and proceed to arbitration. The party who has
2867	2867	failed or refused to comply as prescribed in this section
2868	2868	shall be considered to be in default. Any party considered to
2869	2869	be in default pursuant to this subsection shall have waived
2870	2870	any and all rights the party would have had in the arbitration
2871	2871	and shall be considered to have consented to the determination
2872	2872	of the arbitration panel.
2873	2873	§28-8B-10
2874	2874	(a) A wholesaler may not waive any of the rights
2875	2875	granted in this chapter, and the provisions of any agreement
2876	2876	which would have such an effect shall be void. Nothing in this
2877	2877	chapter shall be construed to limit or prohibit good faith
2878	2878	dispute settlements voluntarily entered into by the parties.
2879	2879	(b) A transferee of a wholesaler that continues in
2880	2880	business as a wholesaler shall have the benefit of and be
2881	2881	bound by all terms and conditions of the agreement with the
2882	2882	supplier in effect on the date of the transfer; provided,
2883	2883	however, a transfer of a wholesaler's business which requires
2884	2884	1401
2885	2885	1402
2886	2886	1403
2887	2887	1404
2888	2888	1405
2889	2889	1406
2890	2890	1407
2891	2891	1408
2892	2892	1409
2893	2893	1410
2894	2894	1411
2895	2895	1412
2896	2896	1413
2897	2897	1414
2898	2898	1415
2899	2899	1416
2900	2900	1417
2901	2901	1418
2902	2902	1419
2903	2903	1420
2904	2904	1421
2905	2905	1422
2906	2906	1423
2907	2907	1424
2908	2908	1425
2909	2909	1426
2910	2910	1427
2911	2911	1428 SB194 INTRODUCEDSB194 INTRODUCED
2912	2912	Page 52
2913	2913	a supplier's consent or approval but is disapproved by the
2914	2914	supplier shall be void.
2915	2915	(c) A successor to a supplier that continues in
2916	2916	business as a supplier shall be bound by all terms and
2917	2917	conditions of each agreement of the supplier in effect on the
2918	2918	date of succession.
2919	2919	§28-8B-11
2920	2920	(a)(1) If a supplier engages in conduct prohibited
2921	2921	under this chapter, a wholesaler with which the supplier has
2922	2922	an agreement may maintain a civil action against the supplier
2923	2923	to recover actual damages reasonably incurred as the result of
2924	2924	the prohibited conduct.
2925	2925	(2) If a wholesaler engages in conduct prohibited under
2926	2926	this chapter, a supplier with which the wholesaler has an
2927	2927	agreement may maintain a civil action against the wholesaler
2928	2928	to recover actual damages reasonably incurred as the result of
2929	2929	the prohibited conduct.
2930	2930	(b)(1) A supplier that violates any provision of this
2931	2931	chapter shall be liable for all actual damages and all court
2932	2932	costs and, in the court's discretion, reasonable attorney fees
2933	2933	incurred by a wholesaler as a result of that violation.
2934	2934	(2) A wholesaler that violates any provision of this
2935	2935	chapter shall be liable for all actual damages and all court
2936	2936	costs and, in the court's discretion, reasonable attorney fees
2937	2937	incurred by the supplier as a result of that violation.
2938	2938	(c)(1) This chapter imposes upon a supplier the duty to
2939	2939	deal fairly and in good faith with a wholesaler that has
2940	2940	entered into an agreement with the supplier to purchase and
2941	2941	1429
2942	2942	1430
2943	2943	1431
2944	2944	1432
2945	2945	1433
2946	2946	1434
2947	2947	1435
2948	2948	1436
2949	2949	1437
2950	2950	1438
2951	2951	1439
2952	2952	1440
2953	2953	1441
2954	2954	1442
2955	2955	1443
2956	2956	1444
2957	2957	1445
2958	2958	1446
2959	2959	1447
2960	2960	1448
2961	2961	1449
2962	2962	1450
2963	2963	1451
2964	2964	1452
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2970	2970	sell a brand or brands of mixed spirit beverages sold by the
2971	2971	supplier. Except as otherwise provided in this chapter, a
2972	2972	court may award exemplary or punitive damages, as well as
2973	2973	actual damages, court costs, and reasonable attorney fees to a
2974	2974	wholesaler who has been damaged by the action or the failure
2975	2975	to act of a supplier if the court, upon proof thereof by clear
2976	2976	and convincing evidence as defined in Section 6-11-20, finds
2977	2977	that a supplier has intentionally, consciously, or
2978	2978	deliberately acted in bad faith or failed to act in good faith
2979	2979	in any of the following:
2980	2980	a. Effecting an amendment, modification, termination,
2981	2981	cancellation, or nonrenewal of any agreement.
2982	2982	b. Unreasonably interfering with, preventing, or
2983	2983	unreasonably delaying the transfer of the wholesaler's
2984	2984	business where approval of the proposed transferee is not
2985	2985	required by this chapter.
2986	2986	c. Unreasonably withholding its consent to or approval
2987	2987	of any assignment, transfer, or sale of a wholesaler's
2988	2988	business, where approval of the proposed transferee is
2989	2989	required by this chapter.
2990	2990	(2) The actions or failure to act on the part of the
2991	2991	supplier, as listed in subdivision (1), shall constitute bad
2992	2992	faith.
2993	2993	(d) A supplier or wholesaler may bring an action for
2994	2994	declaratory judgment for determination of any controversy
2995	2995	arising pursuant to this chapter.
2996	2996	(e) Upon proper application to the court, a supplier or
2997	2997	wholesaler may obtain injunctive relief against any violation
2998	2998	1457
2999	2999	1458
3000	3000	1459
3001	3001	1460
3002	3002	1461
3003	3003	1462
3004	3004	1463
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3006	3006	1465
3007	3007	1466
3008	3008	1467
3009	3009	1468
3010	3010	1469
3011	3011	1470
3012	3012	1471
3013	3013	1472
3014	3014	1473
3015	3015	1474
3016	3016	1475
3017	3017	1476
3018	3018	1477
3019	3019	1478
3020	3020	1479
3021	3021	1480
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3023	3023	1482
3024	3024	1483
3025	3025	1484 SB194 INTRODUCEDSB194 INTRODUCED
3026	3026	Page 54
3027	3027	of this chapter. If the court grants injunctive relief or
3028	3028	issues a temporary restraining order, bond shall not be
3029	3029	required to be posted.
3030	3030	(f) The remedies provided by this section are
3031	3031	nonexclusive.
3032	3032	(g) Any legal action taken under this chapter, or in a
3033	3033	dispute arising out of an agreement or breach thereof, or over
3034	3034	the provisions of an agreement shall be filed in any state
3035	3035	court located in a county in which the supplier and wholesaler
3036	3036	have a territorial agreement in Alabama.
3037	3037	Section 9. If any provision of this act, or its
3038	3038	application to any person or circumstance, is determined by a
3039	3039	court to be invalid or unconstitutional, that provision shall
3040	3040	be stricken and the remaining provisions shall be construed in
3041	3041	accordance with the intent of the Legislature to further limit
3042	3042	rather than expand commerce in alcoholic beverages, including
3043	3043	by prohibiting any commerce in alcoholic beverages not
3044	3044	expressly authorized, and to enhance strict regulatory control
3045	3045	over taxation, distribution, and sale of alcoholic beverages
3046	3046	through the existing uniform system of regulation of alcoholic
3047	3047	beverages.
3048	3048	Section 10. This act shall become effective April 1,
3049	3049	2024, following its passage and approval by the Governor, or
3050	3050	its otherwise becoming law.
3051	3051	1485
3052	3052	1486
3053	3053	1487
3054	3054	1488
3055	3055	1489
3056	3056	1490
3057	3057	1491
3058	3058	1492
3059	3059	1493
3060	3060	1494
3061	3061	1495
3062	3062	1496
3063	3063	1497
3064	3064	1498
3065	3065	1499
3066	3066	1500
3067	3067	1501
3068	3068	1502
3069	3069	1503
3070	3070	1504
3071	3071	1505
3072	3072	1506
3073	3073	1507
3074	3074	1508