Alabama Senate Bill SB259

Alabama 2024 Regular Session

• Introduced: 3/21/24
• Report Pass: 4/2/24
• Refer: 3/21/24
• Refer: 4/2/24

Caption

Mixed Spirit Beverages; providing for definition, licensure, and distribution

Impact

The introduction of SB259 is set to significantly impact state laws regarding the sale and distribution of alcoholic beverages. It will require all mixed spirit beverages to be distributed only through licensed wholesalers, which could limit the current distribution channels. Furthermore, the bill imposes a privilege or excise tax on mixed spirit beverages, which is designed to be collected from wholesalers, affecting both wholesale and retail sales prices. The tax structure outlined in SB259 mandates that proceeds will support state funding initiatives, thus introducing a new revenue stream for the state.

Summary

SB259 is a legislative bill aimed at amending the Code of Alabama to include specific regulations on the sale, distribution, and taxation of a new category of alcoholic beverages known as 'mixed spirit beverages.' These beverages are defined as ready-to-drink liquors containing no more than 8% alcohol by volume. The legislation introduces a framework for their wholesale distribution through licensed wholesalers and provides for retail sale by licensed retailers, thereby establishing a structured taxation mechanism for these products. This bill is intended to meet a growing demand for low-alcohol beverages while also regulating their distribution in accordance with state laws.

Contention

Notable points of contention surrounding SB259 could arise from the implementation of exclusive franchise agreements between manufacturers and wholesalers, which might raise concerns about market competition and control in the alcoholic beverage industry. Additionally, there is a potential conflict with local regulations, particularly in 'dry' counties where the sale of alcoholic beverages is restricted, as the bill seeks to impose state-level licensing that may be at odds with local laws. Stakeholders in the food and beverage industry may voice apprehensions regarding the implications of new taxes and regulatory requirements on their operations.