Alabama 2025 Regular Session

Alabama House Bill HB521 Compare Versions

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

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1	1	HB521INTRODUCED
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3	3	HB521
4	4	CXPMUQJ-1
5	5	By Representatives Lipscomb, Moore (P), Underwood, Kirkland,
6	6	Robertson, Oliver, Shaw, Holk-Jones, Starnes, Easterbrook,
7	7	England, Daniels, McCampbell, Gray, Lawrence
8	8	RFD: Economic Development and Tourism
9	9	First Read: 03-Apr-25
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16	16	7 CXPMUQJ-1 04/02/2025 JC (L)lg 2025-1518
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18	18	First Read: 03-Apr-25
19	19	SYNOPSIS:
20	20	Existing law makes no specific provisions
21	21	regarding the retail sale, wholesale, or tax on the
22	22	sale of low-alcohol by volume content beverages made
23	23	from liquor. These beverages are regulated like liquor.
24	24	They are not available for distribution through beer
25	25	and table wine wholesalers and are only sold in ABC
26	26	stores.
27	27	This bill would define a new category of ready
28	28	to drink mixed liquor beverages containing no more than
29	29	seven percent alcohol by volume, called "mixed spirit
30	30	beverages."
31	31	This bill would institute a licensing structure
32	32	in Alabama for mixed spirit beverages, which would
33	33	require all mixed spirit beverages, other than those
34	34	sold in Alabama Beverage Control Board stores, to be
35	35	distributed through licensed wholesalers to licensed
36	36	retailers for on-premise and off-premise consumption.
37	37	This bill would provide for the levy of a
38	38	privilege or excise tax on mixed spirit beverages.
39	39	This bill would require suppliers of mixed
40	40	spirit beverages to designate exclusive sales
41	41	territories for each brand and enter into a
42	42	distribution agreement with a licensed wholesaler for
43	43	each sales territory.
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73	73	each sales territory.
74	74	This bill would also set requirements for
75	75	distribution agreements between suppliers and wholesale
76	76	distributors of mixed spirit beverages for no-cause
77	77	termination or nonrenewal of a distribution agreement.
78	78	A BILL
79	79	TO BE ENTITLED
80	80	AN ACT
81	81	Relating to alcoholic beverages; to amend Sections
82	82	28-3-1, 28-3A-3, 28-3A-21, and 28-3A-23, Code of Alabama 1975;
83	83	to define a new category of low-alcohol content liquor
84	84	beverages called mixed spirit beverages; to add Section
85	85	28-3-208 to the Code of Alabama 1975, to levy an excise tax
86	86	upon the distribution of mixed spirit beverages; to add
87	87	Section 28-3A-9.1 to the Code of Alabama 1975, to provide a
88	88	license for wholesalers of mixed spirit beverages; to add
89	89	Section 28-3A-17.3, to provide licenses for retailers of mixed
90	90	spirit beverages; to set fees for the licenses; and to add
91	91	Chapter 8B to Title 28 of the Code of Alabama 1975; to require
92	92	licensed importers, manufacturers, and suppliers of mixed
93	93	spirit beverages to enter into exclusive sales territory
94	94	distribution agreements with wholesalers.
95	95	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
96	96	Section 1. Section 28-3-1, Code of Alabama 1975, is
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126	126	Section 1. Section 28-3-1, Code of Alabama 1975, is
127	127	amended to read as follows:
128	128	"§28-3-1
129	129	As used in this title, the following words shall have
130	130	the following meanings unless the context clearly indicates
131	131	otherwise:
132	132	(1) ALCOHOLIC BEVERAGES. Any alcoholic, spirituous,
133	133	vinous, fermented, or other alcoholic beverage, or combination
134	134	of liquors and mixed liquor, a part of which is spirituous,
135	135	vinous, fermented, or otherwise alcoholic, and all drinks or
136	136	drinkable liquids, preparations , or mixtures intended for
137	137	beverage purposes, which contain one-half of one percent or
138	138	more of alcohol by volume , and shall include . The term
139	139	includes liquor, beer, and wine, and mixed spirit beverages .
140	140	(2) ASSOCIATION. A partnership, limited partnership, or
141	141	any form of unincorporated enterprise owned by two or more
142	142	persons.
143	143	(3) BEER, or MALT OR BREWED BEVERAGES. Any beer, lager
144	144	beer, ale, porter, malt or brewed beverage, or similar
145	145	fermented beverage containing one-half of one percent or more
146	146	of alcohol by volume and not in excess of thirteen and
147	147	nine-tenths13.9 percent alcohol by volume, brewed or produced
148	148	from malt, wholly or in part, or from rice, grain of any kind,
149	149	bran, glucose, sugar, or molasses. A beer or malt or brewed
150	150	beverage may incorporate honey, fruit, fruit juice, fruit
151	151	concentrate, herbs, spices, or other flavorings during the
152	152	fermentation process. The term does not include any product
153	153	defined as liquor, table wine, or wine, or mixed spirit
154	154	beverages.
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184	184	beverages.
185	185	(4) BOARD. The Alcoholic Beverage Control Board.
186	186	(5) BRANDY. All beverages that are an alcoholic
187	187	distillate from the fermented juice, mash, or wine of fruit,
188	188	or from the residue thereof, produced in such manner that the
189	189	distillate possesses the taste, aroma, and characteristics
190	190	generally attributed to the beverage, as bottled at not less
191	191	than 80 degree proof.
192	192	(6) CARTON. The package or container or containers in
193	193	which alcoholic beverages are originally packaged for shipment
194	194	to market by the manufacturer or its designated
195	195	representatives or the importer.
196	196	(7) CIDER. A fermented alcoholic beverage made from
197	197	apple juice and containing not more than 8.5 percent alcohol
198	198	by volume.
199	199	(8) CLUB.
200	200	a. Class I. A corporation or association organized or
201	201	formed in good faith by authority of law and which must have
202	202	at least 150 paid-up members. It must be the owner, lessee, or
203	203	occupant of an establishment operated solely for the objects
204	204	of a national, social, patriotic, political, or athletic
205	205	nature or the like, but not for pecuniary gain, and the
206	206	property as well as the advantages of which, belong to all the
207	207	members and which maintains an establishment provided with
208	208	special space and accommodations where, in consideration of
209	209	payment, food with or without lodging is habitually served.
210	210	The club shall hold regular meetings, continue its business
211	211	through officers regularly elected, admit members by written
212	212	application, investigation, and ballot, and charge and collect
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242	242	application, investigation, and ballot, and charge and collect
243	243	dues from elected members.
244	244	b. Class II. A corporation or association organized or
245	245	formed in good faith by authority of law and which must have
246	246	at least 100 paid-up members. It must be the owner, lessee, or
247	247	occupant of an establishment operated solely for the objects
248	248	of a national, social, patriotic, political, or athletic
249	249	nature or the like. The club shall hold regular meetings,
250	250	continue its business through officers regularly elected,
251	251	admit members by written application, investigation, and
252	252	ballot, and charge and collect dues from elected members.
253	253	(9) CONTAINER. The single bottle, can, keg, bag, or
254	254	other receptacle, but not a carton, in which alcoholic
255	255	beverages are originally packaged for the market by the
256	256	manufacturer or importer and from which the alcoholic beverage
257	257	is consumed by or dispensed to the public.
258	258	(10) CORPORATION. A corporation or joint stock
259	259	association organized under the laws of this state, the United
260	260	States, or any other state, territory , or foreign country, or
261	261	dependency.
262	262	(11) DELIVERY. The transportation of alcoholic
263	263	beverages directly from a retail licensee of the board to an
264	264	individual, pursuant to Section 28-1-4 and Section 28-3A-13.1.
265	265	(12) DELIVERY SERVICE LICENSE. A license issued by the
266	266	Alabama Alcoholic Beverage Control Board in accordance with
267	267	Section 28-3A-13.1 that authorizes the licensee, the
268	268	licensee's employees, or independent contractors under a
269	269	contractual or business arrangement with the licensee to
270	270	transport and deliver alcoholic beverages.
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300	300	transport and deliver alcoholic beverages.
301	301	(13) DRY COUNTY. Any county which by a majority of
302	302	those voting voted in the negative in an election heretofore
303	303	held under the applicable statutes at the time of the election
304	304	or may hereafter vote in the negative in an election or
305	305	special method referendum hereafter held in accordance with
306	306	Chapter 2, or held in accordance with the provisions of any
307	307	act hereafter enacted permitting such election.
308	308	(14) DRY MUNICIPALITY. Any municipality within a wet
309	309	county which has, by its governing body or by a majority of
310	310	those voting in a municipal election heretofore held in
311	311	accordance with the provisions of Section 28-2-22, or in a
312	312	municipal option election heretofore or hereafter held in
313	313	accordance with the provisions of Act 84-408, Acts of Alabama
314	314	1984, appearing as Chapter 2A, or any act hereafter enacted
315	315	permitting municipal option election, voted to exclude the
316	316	sale of alcoholic beverages within the corporate limits of the
317	317	municipality.
318	318	(15) EMPLOYEE. An individual to whom an employer is
319	319	required to issue a W-2 tax form under federal law.
320	320	(16) GENERAL WELFARE PURPOSES. All of the following:
321	321	a. The administration of public assistance as set out
322	322	in Sections 38-2-5 and 38-4-1.
323	323	b. Services, including supplementation and
324	324	supplementary services under the federal Social Security Act,
325	325	to or on behalf of persons to whom public assistance may be
326	326	given under Sections 38-2-5 and 38-4-1.
327	327	c. Service to and on behalf of dependent, neglected, or
328	328	delinquent children.
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358	358	delinquent children.
359	359	d. Investigative and referral services to and on behalf
360	360	of needy persons.
361	361	(17) HEARING COMMISSION. A body appointed by the board
362	362	to hear and decide all contested license applications and all
363	363	disciplinary charges against any licensee for violation of
364	364	this title or the rules of the board.
365	365	(18) HOTEL. A building or buildings held out to the
366	366	public for housing accommodations of travelers or transients,
367	367	and shall include a motel, but shall not include a rooming
368	368	house or boarding house.
369	369	(19) IMPORTER. Any person, association, or corporation
370	370	engaged in importing alcoholic beverages, liquor, wine, or
371	371	beer, or mixed spirit beverages manufactured outside of the
372	372	United States of America into this state or for sale or
373	373	distribution in this state, or to the board or to a licensee
374	374	of the board.
375	375	(20) INDEPENDENT CONTRACTOR. An individual to whom an
376	376	employer is required to issue a 1099 tax form under federal
377	377	law.
378	378	(21) KEG. A pressurized factory sealed container with a
379	379	capacity equal to or greater than five U.S. gallons, from
380	380	which beer is withdrawn by means of an external tap.
381	381	(22) LIQUOR. Any alcoholic, spirituous, vinous,
382	382	fermented, or other alcoholic beverage, or combination of
383	383	liquors and mixed liquor, a part of which is spirituous,
384	384	fermented, vinous, or otherwise alcoholic, and all drinks or
385	385	drinkable liquids, preparations, or mixtures intended for
386	386	beverage purposes, which contain one-half of one percent or
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416	416	beverage purposes, which contain one-half of one percent or
417	417	more of alcohol by volume, except beer ,and table wine, and
418	418	mixed spirit beverages .
419	419	(23) LIQUOR STORE. A liquor store operated by the
420	420	board, where alcoholic beverages other than beer are
421	421	authorized to be sold in unopened containers.
422	422	(24) MANUFACTURER. Any person, association, or
423	423	corporation engaged in the producing, bottling, manufacturing,
424	424	distilling, fermenting, brewing, rectifying, or compounding of
425	425	alcoholic beverages, liquor, beer, or wine, or mixed spirit
426	426	beverages in this state or for sale or distribution in this
427	427	state or to the board or to a licensee of the board.
428	428	(25) MEAD. An alcoholic beverage produced by fermenting
429	429	a solution of honey and water with grain mash and containing
430	430	not more than 18 percent alcohol by volume.
431	431	(26) MEAL. A diversified selection of food some of
432	432	which is not susceptible of being consumed in the absence of
433	433	at least some articles of tableware and which cannot be
434	434	conveniently consumed while one is standing or walking about.
435	435	(27) MINOR. Any person under 21 years of age; provided,
436	436	however, in the event Section 28-1-5 ,shall beis repealed or
437	437	otherwise shall be no longer in effect, thereafter the
438	438	provisions of Section 26-1-1, shall govern.
439	439	(28) MIXED SPIRIT BEVERAGES. A single-serve beverage
440	440	containing liquor, packaged in a can or other container
441	441	approved by the board no larger than 16 ounces, and which
442	442	contains no more than seven percent alcohol by volume. The
443	443	term does not include any beverage containing liquor over 16
444	444	ounces in size or of more than seven percent alcohol by
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474	474	ounces in size or of more than seven percent alcohol by
475	475	volume.
476	476	(29) MUNICIPALITY. Any incorporated city or town of
477	477	this state to include its police jurisdiction.
478	478	(29)30 PERSON. Every natural person, association, or
479	479	corporation. Whenever used in a clause prescribing or imposing
480	480	a fine or imprisonment, or both, such the term as applied to
481	481	an association shall mean the partners or members thereof and
482	482	as applied to a corporation shall mean the officers thereof,
483	483	except as to incorporated clubs the term person shall mean
484	484	such means an individual or individuals who, under the bylaws
485	485	of such clubs, shall have jurisdiction over the possession and
486	486	sale of liquor therein.
487	487	(30)(31) POPULATION. The population according to the
488	488	last preceding or any subsequent decennial census of the
489	489	United States, except where a municipality is incorporated
490	490	subsequent to the last census, in which event, its population
491	491	until the next decennial census shall be the population of the
492	492	municipality as determined by the judge of probate of the
493	493	county as the official population on the date of its
494	494	incorporation.
495	495	(31)(32) RESTAURANT. A reputable place licensed as a
496	496	restaurant, operated by a responsible person of good
497	497	reputation, and habitually and principally used for the
498	498	purpose of preparing and serving meals for the public to
499	499	consume on the premises.
500	500	(32)(33) RETAILER. Any person licensed by the board to
501	501	engage in the retail sale of any alcoholic beverages to the
502	502	consumer.
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532	532	consumer.
533	533	(33)(34) SALE or SELL. Any transfer of liquor, wine ,or
534	534	beer, or mixed spirit beverages for a consideration, and any
535	535	gift in connection with, or as a part of, a transfer of
536	536	property other than liquor, wine, or beer,or mixed spirit
537	537	beverages for a consideration.
538	538	(34)(35) SELLING PRICE. The total marked-up price of
539	539	spirituous or vinous liquors sold by the board, exclusive of
540	540	taxes levied thereon.
541	541	(35)(36) TABLE WINE. Except as otherwise provided in
542	542	this subdivision, any wine containing not more than 24 percent
543	543	alcohol by volume. Table wine does not include any wine
544	544	containing more than sixteen and one-half 16.5 percent alcohol
545	545	by volume that is made with herbs or flavors, except vermouth,
546	546	or is an imitation or other than standard wine. Table wine is
547	547	not liquor, spirituous, or vinous.
548	548	(36)(37) UNOPENED CONTAINER. A container containing
549	549	alcoholic beverages, which has not been opened or unsealed
550	550	subsequent to filling and sealing by the manufacturer or
551	551	importer.
552	552	(37)(38) WET COUNTY. Any county which by a majority of
553	553	those voting voted in the affirmative in an election
554	554	heretofore held in accordance with the statutes applicable at
555	555	the time of the election or may hereafter vote in the
556	556	affirmative in an election or special method referendum held
557	557	in accordance with Chapter 2, or other statutes applicable at
558	558	the time of the election.
559	559	(38)(39) WET MUNICIPALITY. Any municipality in a dry
560	560	county which by a majority of those voting voted in the
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590	590	county which by a majority of those voting voted in the
591	591	affirmative in a municipal option election heretofore or
592	592	hereafter held in accordance with the provisions of Act
593	593	84-408, Acts of Alabama 1984, appearing as Chapter 2A of this
594	594	title, as amended, or any act hereafter enacted permitting
595	595	municipal option election, or any municipality which became
596	596	wet by vote of the governing body or by the voters of the
597	597	municipality heretofore or hereafter held under the special
598	598	method referendum provisions of Section 28-2-22, or as
599	599	hereafter provided, where the county has become dry subsequent
600	600	to the elected wet status of the municipality.
601	601	(39)(40) WHOLESALER. Any person licensed by the board
602	602	to engage in the sale and distribution of table wine ,and
603	603	beer, or mixed spirit beverages, or either anycombination
604	604	thereofof them, within this state, at wholesale only, to be
605	605	sold by export or to retail licensees or other wholesale
606	606	licensees or others within this state lawfully authorized to
607	607	sell table wine, and beer, or mixed spirit beverages, or
608	608	either any combination thereof of them, for the purpose of
609	609	resale only.
610	610	(40)(41) WINE. All beverages made from the fermentation
611	611	of fruits, berries, or grapes, with or without added spirits,
612	612	and produced in accordance with the laws and regulations of
613	613	the United States, containing not more than 24 percent alcohol
614	614	by volume, and shall include all sparkling wines, carbonated
615	615	wines, special natural wines, rectified wines, vermouths,
616	616	vinous beverages, vinous liquors, and like products, including
617	617	restored or unrestored pure condensed juice."
618	618	Section 2. Section 28-3-208 is added to the Code of
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648	648	Section 2. Section 28-3-208 is added to the Code of
649	649	Alabama 1975, to read as follows:
650	650	§28-3-208
651	651	(a) There is levied, in addition to the license taxes
652	652	provided for by this chapter and municipal and county license
653	653	taxes, a privilege or excise tax measured by and graduated in
654	654	accordance with the volume of sales of mixed spirit beverages,
655	655	which shall be an amount equal to two and nine-tenths cents
656	656	($.029) per ounce or fractional part thereof.
657	657	(b)(1)a. The tax levied by subsection (a) shall be
658	658	added to the sales price of all mixed spirit beverages and
659	659	collected from the purchaser. The tax shall be collected in
660	660	the first instance from the wholesaler where mixed spirit
661	661	beverages are sold or handled by wholesale licensees.
662	662	b. It shall be unlawful for any person who is required
663	663	to pay the tax in the first instance to fail or refuse to add
664	664	to the sales price and collect from the purchaser the required
665	665	amount of tax, it being the intent and purpose of this section
666	666	that the tax levied is in fact a levy on the consumer. The
667	667	person who pays the tax in the first instance is acting as an
668	668	agent of the state for the collection and payment of the tax
669	669	and as such may not collect a tax on mixed spirit beverages
670	670	for any other level of government.
671	671	(2) The tax levied by subsection (a) shall be collected
672	672	by a monthly return as follows:
673	673	a. The wholesaler shall file a monthly return with the
674	674	board no later than the 15th day of the second month following
675	675	the month of receipt of mixed spirit beverages by the
676	676	wholesaler on a form prescribed by the board showing receipts
677	677	309
678	678	310
679	679	311
680	680	312
681	681	313
682	682	314
683	683	315
684	684	316
685	685	317
686	686	318
687	687	319
688	688	320
689	689	321
690	690	322
691	691	323
692	692	324
693	693	325
694	694	326
695	695	327
696	696	328
697	697	329
698	698	330
699	699	331
700	700	332
701	701	333
702	702	334
703	703	335
704	704	336 HB521 INTRODUCED
705	705	Page 13
706	706	wholesaler on a form prescribed by the board showing receipts
707	707	by the wholesaler from manufacturers, importers, or other
708	708	wholesaler licensees during the month of receipt and the tax
709	709	due thereon at the rate of two and nine-tenths cents ($.029)
710	710	per ounce of mixed spirit beverages sold to the wholesaler.
711	711	The tax due at this rate shall be remitted to the board along
712	712	with the return.
713	713	b. A wholesaler shall file a monthly return with the
714	714	county or municipality within which the mixed spirit beverage
715	715	is sold at retail not later than the 15th day of each month,
716	716	showing sales by wholesalers during the preceding month and
717	717	the tax due thereon at the rate of two thousandths cents
718	718	($.002) per ounce sold. The tax due at this rate shall be
719	719	remitted to the county or municipality along with the return.
720	720	(3) The board and the governing body of each county and
721	721	municipality served by the wholesaler shall have the authority
722	722	to examine the books and records of the wholesaler who sells,
723	723	stores, or receives for the purpose of distribution any mixed
724	724	spirit beverages, to determine the accuracy of any return
725	725	required to be filed with it.
726	726	(c) The proceeds of the tax levied by subsection (a)
727	727	and remitted pursuant to subsection (b) shall be paid and
728	728	distributed as follows:
729	729	(1) One-half of the mixed spirit beverages tax shall be
730	730	deposited in the State General Fund.
731	731	(2) The remaining one-half of the mixed spirit
732	732	beverages tax shall be retained by the board for regulatory,
733	733	enforcement, and administrative purposes.
734	734	(3) The mixed spirit beverage tax remitted by the
735	735	337
736	736	338
737	737	339
738	738	340
739	739	341
740	740	342
741	741	343
742	742	344
743	743	345
744	744	346
745	745	347
746	746	348
747	747	349
748	748	350
749	749	351
750	750	352
751	751	353
752	752	354
753	753	355
754	754	356
755	755	357
756	756	358
757	757	359
758	758	360
759	759	361
760	760	362
761	761	363
762	762	364 HB521 INTRODUCED
763	763	Page 14
764	764	(3) The mixed spirit beverage tax remitted by the
765	765	wholesaler to either the county or municipality under
766	766	paragraph (b)(2)b. shall be distributed as provided in Section
767	767	28-3-190.
768	768	(d) The tax levied under this section is exclusive and
769	769	shall be in lieu of all other and additional taxes and
770	770	licenses of the state, county, or municipality, imposed on or
771	771	measured by the sale or volume of sale of mixed spirit
772	772	beverages; provided, that nothing contained in this section
773	773	shall be construed to exempt the retail sale of mixed spirit
774	774	beverages from the levy of tax on general retail sales by the
775	775	state, county, or municipality in the nature of, or in lieu
776	776	of, a general sales tax.
777	777	(e) The tax levied by subsection (a) shall not be
778	778	imposed upon the sale, trade, or barter of mixed spirit
779	779	beverages by one licensed wholesaler to another wholesaler
780	780	licensed to sell and handle mixed spirit beverages in this
781	781	state, which transaction is made exempt from the tax;
782	782	provided, however, the board may require written reporting of
783	783	any such transaction in the form as the board may prescribe
784	784	pursuant to paragraph (b)(2)a.
785	785	(f) Each county and municipality may fix a reasonable
786	786	privilege or license fee on retail, importer, and wholesale
787	787	licensees, for the purpose of covering the cost of
788	788	administration with respect to the sale of mixed spirit
789	789	beverages, but not to generate revenue; provided, however, a
790	790	county or municipality may not levy a license or privilege tax
791	791	or other charge for the privilege of doing business as a mixed
792	792	spirit beverages wholesaler, importer, or retailer which shall
793	793	365
794	794	366
795	795	367
796	796	368
797	797	369
798	798	370
799	799	371
800	800	372
801	801	373
802	802	374
803	803	375
804	804	376
805	805	377
806	806	378
807	807	379
808	808	380
809	809	381
810	810	382
811	811	383
812	812	384
813	813	385
814	814	386
815	815	387
816	816	388
817	817	389
818	818	390
819	819	391
820	820	392 HB521 INTRODUCED
821	821	Page 15
822	822	spirit beverages wholesaler, importer, or retailer which shall
823	823	exceed one-half the amount of the state license fee.
824	824	Section 3. Section 28-3A-3 Code of Alabama 1975, is
825	825	amended to read as follows:
826	826	"§28-3A-3
827	827	(a)(1) Subject to this chapter and rules adopted
828	828	thereunder, the board may issue and renew licenses to
829	829	reputable and responsible persons for the following purposes:
830	830	(1)a. To manufacture, brew, distill, ferment, rectify,
831	831	bottle, or compound any or all alcoholic beverages within or
832	832	for sale within this state.
833	833	(2)b. To import any or all alcoholic beverages
834	834	manufactured outside the United States into this state or for
835	835	sale or distribution within this state.
836	836	(3)c. To distribute, wholesale, or act as jobber for
837	837	the sale of liquor.
838	838	(4)d. To distribute, wholesale, or act as jobber for
839	839	the sale of table wine and beer or either of them , beer, or
840	840	mixed spirit beverages alone or in any combination to licensed
841	841	retailers within the state and others within this state
842	842	lawfully authorized to sell table wine , or beer, or mixed
843	843	spirit beverages .
844	844	(5)e. To store or warehouse any or all alcoholic
845	845	beverages for transshipment inside and outside the state.
846	846	(6)f. To sell and dispense at retail , in a lounge,
847	847	liquor and other alcoholic beverages for on-premises
848	848	consumption.
849	849	(7)g. To sell and dispense at retail in an
850	850	establishment habitually and principally used for the purpose
851	851	393
852	852	394
853	853	395
854	854	396
855	855	397
856	856	398
857	857	399
858	858	400
859	859	401
860	860	402
861	861	403
862	862	404
863	863	405
864	864	406
865	865	407
866	866	408
867	867	409
868	868	410
869	869	411
870	870	412
871	871	413
872	872	414
873	873	415
874	874	416
875	875	417
876	876	418
877	877	419
878	878	420 HB521 INTRODUCED
879	879	Page 16
880	880	establishment habitually and principally used for the purpose
881	881	of providing meals for the public, liquor and other , in a
882	882	restaurant, alcoholic beverages for on-premises consumption.
883	883	(8)h. To sell liquor and wine at retail for
884	884	off-premises consumption.
885	885	(9)i. To sell and dispense at retail , in a club, liquor
886	886	and other alcoholic beverages for on-premises consumption.
887	887	(10)j. To sell table wine at retail for off-premises
888	888	consumption.
889	889	(11)k. To sell table wine at retail for on-premises and
890	890	off-premises consumption.
891	891	(12)l. To sell beer at retail for on-premises and
892	892	off-premises consumption.
893	893	(13)m. To sell beer at retail for off-premises
894	894	consumption.
895	895	n. To sell mixed spirit beverages at retail for
896	896	on-premises and off-premises consumption.
897	897	o. To sell mixed spirit beverages at retail for
898	898	off-premises consumption.
899	899	(14)p. To sell liquor and other alcoholic beverages at
900	900	retail by a retail common carrier with a passenger capacity of
901	901	at least 10 people.
902	902	(15)q. To sell any or all alcoholic beverages at retail
903	903	under a special license issued conditioned upon terms and
904	904	conditions and for the period of time prescribed by the board.
905	905	(16)r. To sell any or all alcoholic beverages at retail
906	906	under a special event retail license issued for three days
907	907	upon the terms and conditions prescribed by the board.
908	908	(2) Provided, however, that the Notwithstanding
909	909	421
910	910	422
911	911	423
912	912	424
913	913	425
914	914	426
915	915	427
916	916	428
917	917	429
918	918	430
919	919	431
920	920	432
921	921	433
922	922	434
923	923	435
924	924	436
925	925	437
926	926	438
927	927	439
928	928	440
929	929	441
930	930	442
931	931	443
932	932	444
933	933	445
934	934	446
935	935	447
936	936	448 HB521 INTRODUCED
937	937	Page 17
938	938	(2) Provided, however, that the Notwithstanding
939	939	subdivision (1), licenses authorized under subdivision (1) may
940	940	not be issued in dry counties where traffic in alcoholic
941	941	beverages is not authorized by law , therein except a wine
942	942	manufacturer license may be issued in a dry county pursuant to
943	943	Section 28-7-10.1. Provided theThe restriction of this
944	944	paragraphsubdivision shall not apply to the issuance of a
945	945	renewal of a license under subdivisions (1), (2), (3), (4),
946	946	and (5)paragraphs (1)a. through (1)e. where the county or
947	947	municipality was wet when the initial license was issued and
948	948	the county or municipality subsequently votes dry; however, no
949	949	importer or wholesaler licensee may sell or distribute
950	950	alcoholic beverages within a dry county, except in a wet
951	951	municipality therein, or within a dry municipality.
952	952	(b) The board is granted discretionary powers in acting
953	953	upon license applications under the provisions of this
954	954	chapter.
955	955	(c) Licenses issued under this chapter, unless revoked
956	956	or suspended in the manner provided in this chapter, shall be
957	957	valid for the license year which shall begin on the first day
958	958	of October of each year, unless otherwise established by this
959	959	chapter or by the board. Licenses may be issued at any time
960	960	during the year."
961	961	Section 4. Section 28-3A-9.1 and 28-3A-17.3 are added
962	962	to the Code of Alabama 1975, to read as follows:
963	963	§28-3A-9.1
964	964	(a) Upon payment of the applicable fee for a mixed
965	965	spirit beverages wholesaler license as established in Section
966	966	28-3A-21, and the applicant's compliance with this chapter and
967	967	449
968	968	450
969	969	451
970	970	452
971	971	453
972	972	454
973	973	455
974	974	456
975	975	457
976	976	458
977	977	459
978	978	460
979	979	461
980	980	462
981	981	463
982	982	464
983	983	465
984	984	466
985	985	467
986	986	468
987	987	469
988	988	470
989	989	471
990	990	472
991	991	473
992	992	474
993	993	475
994	994	476 HB521 INTRODUCED
995	995	Page 18
996	996	28-3A-21, and the applicant's compliance with this chapter and
997	997	rules adopted pursuant to this chapter, the board shall issue
998	998	to a wholesaler a mixed spirit beverage wholesaler license.
999	999	(b) A mixed spirit beverage wholesaler license shall
1000	1000	authorize the licensee to do all of the following:
1001	1001	(1) Import and receive shipments of mixed spirit
1002	1002	beverages from outside the state from licensed manufacturers.
1003	1003	(2) Purchase mixed spirit beverages from licensed
1004	1004	manufacturers or other licensed wholesalers within the state.
1005	1005	(3) Sell at wholesale or distribute mixed spirit
1006	1006	beverages to all licensees or other persons within this state
1007	1007	lawfully authorized to sell mixed spirit beverages within the
1008	1008	state.
1009	1009	(4) Export mixed spirit beverages from the state.
1010	1010	(c) Sales to all authorized persons shall be in
1011	1011	original packages or containers as approved by the board and
1012	1012	prepared for the market by the manufacturer.
1013	1013	(d)(1) Except as provided in this section, no person
1014	1014	shall sell at wholesale or distribute mixed spirit beverages
1015	1015	within this state unless the person is issued by the board a
1016	1016	wholesaler license to distribute mixed spirit beverages.
1017	1017	(2) Notwithstanding this section, Section 28-3A-17.3,
1018	1018	or Chapter 8B, the board shall retain the authority to act as
1019	1019	a wholesaler of mixed spirit beverages, provided the board, as
1020	1020	a wholesaler, shall only distribute mixed spirit beverages to
1021	1021	state liquor stores.
1022	1022	§28-3A-17.3
1023	1023	(a) Upon payment of the limited mixed spirit beverage
1024	1024	expanded retail license fee as established in Section
1025	1025	477
1026	1026	478
1027	1027	479
1028	1028	480
1029	1029	481
1030	1030	482
1031	1031	483
1032	1032	484
1033	1033	485
1034	1034	486
1035	1035	487
1036	1036	488
1037	1037	489
1038	1038	490
1039	1039	491
1040	1040	492
1041	1041	493
1042	1042	494
1043	1043	495
1044	1044	496
1045	1045	497
1046	1046	498
1047	1047	499
1048	1048	500
1049	1049	501
1050	1050	502
1051	1051	503
1052	1052	504 HB521 INTRODUCED
1053	1053	Page 19
1054	1054	expanded retail license fee as established in Section
1055	1055	28-3A-21, the board shall issue a limited mixed spirit
1056	1056	expanded retail license to any person who holds and possesses
1057	1057	any of the following:
1058	1058	(1) A valid retail table wine license for on-premises
1059	1059	and off-premises consumption as provided for in Section
1060	1060	28-3A-14.
1061	1061	(2) A valid retail table wine license for off-premises
1062	1062	consumption as provided for in Section 28-3A-15.
1063	1063	(3) A valid retail beer license for on-premises and
1064	1064	off-premises consumption as provided for in Section 28-3A-16.
1065	1065	(4) A valid retail beer license for off-premises
1066	1066	consumption as provided for in Section 28-3A-17.
1067	1067	(b) Upon written request to the board and without
1068	1068	payment of any additional fee in connection therewith, the
1069	1069	board shall issue a limited mixed spirit beverage expanded
1070	1070	retail license to any person who holds and possesses any of
1071	1071	the following:
1072	1072	(1) A valid lounge retail liquor license as provided
1073	1073	for in Section 28-3A-11.
1074	1074	(2) A valid club liquor retail license as provided for
1075	1075	in Section 28-3A-12.
1076	1076	(3) A valid restaurant retail liquor as provided for in
1077	1077	Section 28-3A-13.
1078	1078	(4) A special events retail license as provided for in
1079	1079	Section 28-3A-20.
1080	1080	(c) Each liquor store operated by the board for retail
1081	1081	sales only and not for sales to any person identified in
1082	1082	subsection (a) or (b) shall be authorized to purchase mixed
1083	1083	505
1084	1084	506
1085	1085	507
1086	1086	508
1087	1087	509
1088	1088	510
1089	1089	511
1090	1090	512
1091	1091	513
1092	1092	514
1093	1093	515
1094	1094	516
1095	1095	517
1096	1096	518
1097	1097	519
1098	1098	520
1099	1099	521
1100	1100	522
1101	1101	523
1102	1102	524
1103	1103	525
1104	1104	526
1105	1105	527
1106	1106	528
1107	1107	529
1108	1108	530
1109	1109	531
1110	1110	532 HB521 INTRODUCED
1111	1111	Page 20
1112	1112	subsection (a) or (b) shall be authorized to purchase mixed
1113	1113	spirit beverages from a licensed mixed spirit beverages
1114	1114	wholesaler and sell the mixed spirit beverages at retail
1115	1115	commensurate with the privileges granted to the state liquor
1116	1116	store to sell other alcoholic beverages.
1117	1117	(d) A license issued under this section shall authorize
1118	1118	the licensee to purchase mixed spirit beverages from a
1119	1119	licensed mixed spirit beverages wholesaler and sell the mixed
1120	1120	spirit beverages at retail commensurate with the privileges
1121	1121	granted to the licensee to sell beer and table wine.
1122	1122	(e) The board shall retain all limited mixed spirit
1123	1123	expanded retail licensing fees collected. The board may use
1124	1124	collected fees for regulatory and administrative purposes as
1125	1125	determined by the board in its discretion, including for the
1126	1126	purposes of replenishing the Cost of Evidence Fund established
1127	1127	pursuant to Section 28-3-55 to assist in the regulatory
1128	1128	functions of the board.
1129	1129	(f) Upon payment of a limited mixed spirit expanded
1130	1130	retail license fee, there shall be no additional licensing or
1131	1131	administrative requirements, including no requirement for
1132	1132	additional background checks imposed by the city, county, or
1133	1133	state for licensees for the sale of mixed spirit beverages.
1134	1134	Section 5. Sections 28-3A-21 and 28-3A-23, Code of
1135	1135	Alabama 1975, are amended to read as follows:
1136	1136	"§28-3A-21
1137	1137	(a) The following annual license fees are levied and
1138	1138	prescribed for licenses issued and renewed by the board
1139	1139	pursuant to the authority contained in this chapter:
1140	1140	(1) Manufacturer license, license fee of five hundred
1141	1141	533
1142	1142	534
1143	1143	535
1144	1144	536
1145	1145	537
1146	1146	538
1147	1147	539
1148	1148	540
1149	1149	541
1150	1150	542
1151	1151	543
1152	1152	544
1153	1153	545
1154	1154	546
1155	1155	547
1156	1156	548
1157	1157	549
1158	1158	550
1159	1159	551
1160	1160	552
1161	1161	553
1162	1162	554
1163	1163	555
1164	1164	556
1165	1165	557
1166	1166	558
1167	1167	559
1168	1168	560 HB521 INTRODUCED
1169	1169	Page 21
1170	1170	(1) Manufacturer license, license fee of five hundred
1171	1171	dollars ($500).
1172	1172	(2) Importer license, license fee of five hundred
1173	1173	dollars ($500).
1174	1174	(3) Liquor wholesalewholesaler license, license fee of
1175	1175	five hundred dollars ($500).
1176	1176	(4) WholesalerBeer wholesaler license, beer license fee
1177	1177	of five hundred fifty dollars ($550) or wine license fee of
1178	1178	five hundred fifty dollars ($550); license fee for beer and
1179	1179	wine of seven hundred fifty dollars ($750); plus two hundred
1180	1180	dollars ($200) for each warehouse in addition to the principal
1181	1181	warehouse.
1182	1182	(5) Wine wholesaler license, license fee of five
1183	1183	hundred fifty dollars ($550) plus two hundred dollars ($200)
1184	1184	for each warehouse in addition to the principal warehouse.
1185	1185	(6) Mixed spirit beverage wholesaler license, license
1186	1186	fee of five hundred fifty dollars ($550) plus two hundred
1187	1187	dollars ($200) for each warehouse in addition to the principal
1188	1188	warehouse.
1189	1189	(7) Beer, wine, and mixed spirit beverage wholesaler
1190	1190	license, license fee of one thousand dollars ($1,000) plus two
1191	1191	hundred dollars ($200) for each warehouse in addition to the
1192	1192	principal warehouse.
1193	1193	(5)(8) Warehouse license, license fee of two hundred
1194	1194	dollars ($200).
1195	1195	(6)(9) Lounge retail liquor license, license fee of
1196	1196	three hundred dollars ($300).
1197	1197	(7)(10) Restaurant retail liquor license, license fee
1198	1198	of three hundred dollars ($300).
1199	1199	561
1200	1200	562
1201	1201	563
1202	1202	564
1203	1203	565
1204	1204	566
1205	1205	567
1206	1206	568
1207	1207	569
1208	1208	570
1209	1209	571
1210	1210	572
1211	1211	573
1212	1212	574
1213	1213	575
1214	1214	576
1215	1215	577
1216	1216	578
1217	1217	579
1218	1218	580
1219	1219	581
1220	1220	582
1221	1221	583
1222	1222	584
1223	1223	585
1224	1224	586
1225	1225	587
1226	1226	588 HB521 INTRODUCED
1227	1227	Page 22
1228	1228	of three hundred dollars ($300).
1229	1229	(8)(11) Club liquor license, Class I license fee of
1230	1230	three hundred dollars ($300), Class II license fee of seven
1231	1231	hundred fifty dollars ($750).
1232	1232	(9)(12) Retail table wine license for off-premises
1233	1233	consumption, license fee of one hundred fifty dollars ($150).
1234	1234	(10)(13) Retail table wine license for on-premises and
1235	1235	off-premises consumption, license fee of one hundred fifty
1236	1236	dollars ($150).
1237	1237	(11)(14) Retail beer license for on-premises and
1238	1238	off-premises consumption, license fee of one hundred fifty
1239	1239	dollars ($150).
1240	1240	(12)(15) Retail beer license for off-premises
1241	1241	consumption, license fee of one hundred fifty dollars ($150).
1242	1242	(13)(16) Retail common carrier liquor license, license
1243	1243	fee of one hundred fifty dollars ($150) for each railroad,
1244	1244	airline, bus line, ship line, vessel , or other common carrier
1245	1245	entity with a vehicle passenger capacity of at least 10
1246	1246	people.
1247	1247	(14)(17) Special retail license, license fee of one
1248	1248	hundred dollars ($100) for 30 days or less; license fee of two
1249	1249	hundred fifty dollars ($250) for more than 30 days.
1250	1250	(15)(18) Special events retail license, license fee of
1251	1251	one hundred fifty dollars ($150).
1252	1252	(19) Mixed spirit expanded retail license, license fee
1253	1253	of five hundred dollars ($500).
1254	1254	(b) The license fees levied and fixed by this section
1255	1255	shall be paid before the license is issued or renewed.
1256	1256	(c) In addition to the foregoing filing fee and license
1257	1257	589
1258	1258	590
1259	1259	591
1260	1260	592
1261	1261	593
1262	1262	594
1263	1263	595
1264	1264	596
1265	1265	597
1266	1266	598
1267	1267	599
1268	1268	600
1269	1269	601
1270	1270	602
1271	1271	603
1272	1272	604
1273	1273	605
1274	1274	606
1275	1275	607
1276	1276	608
1277	1277	609
1278	1278	610
1279	1279	611
1280	1280	612
1281	1281	613
1282	1282	614
1283	1283	615
1284	1284	616 HB521 INTRODUCED
1285	1285	Page 23
1286	1286	(c) In addition to the foregoing filing fee and license
1287	1287	taxes or fees, any county or municipality in which the sale of
1288	1288	alcoholic beverages is permitted shall be authorized to may fix
1289	1289	and levy privileges or license taxes on any of the foregoing
1290	1290	licenses located or operated therein, conditioned on a permit
1291	1291	or license being issued by the board.
1292	1292	(d) No county or municipality shall have any authority
1293	1293	to levy a license or tax of any nature on any liquor store."
1294	1294	"§28-3A-23
1295	1295	(a) No license prescribed in this titlechapter shall be
1296	1296	issued or renewed until the provisions of this titlechapter
1297	1297	have been complied with and the filing and license fees other
1298	1298	than those levied by a municipality are paid to the board.
1299	1299	(b) Licenses shall be granted and issued by the board
1300	1300	only to reputable individuals, to associations whose members
1301	1301	are reputable individuals, or to reputable corporations
1302	1302	organized under the laws of this state or duly qualified
1303	1303	thereunder to do business in Alabama, or, in the case of
1304	1304	manufacturers, duly registered under the laws of Alabama, and
1305	1305	then only when it appears that all officers and directors of
1306	1306	the corporation are reputable individuals.
1307	1307	(c)(1) In addition to all other requirements, an
1308	1308	applicant for a license under this section shall submit to the
1309	1309	board a form, sworn to by the applicant, providing written
1310	1310	consent from the applicant for the release of criminal history
1311	1311	background information. The form shall also require the
1312	1312	applicant's name, date of birth, and Social Security number
1313	1313	for completion of a criminal history background check.
1314	1314	(2) An applicant shall provide the board with two
1315	1315	617
1316	1316	618
1317	1317	619
1318	1318	620
1319	1319	621
1320	1320	622
1321	1321	623
1322	1322	624
1323	1323	625
1324	1324	626
1325	1325	627
1326	1326	628
1327	1327	629
1328	1328	630
1329	1329	631
1330	1330	632
1331	1331	633
1332	1332	634
1333	1333	635
1334	1334	636
1335	1335	637
1336	1336	638
1337	1337	639
1338	1338	640
1339	1339	641
1340	1340	642
1341	1341	643
1342	1342	644 HB521 INTRODUCED
1343	1343	Page 24
1344	1344	(2) An applicant shall provide the board with two
1345	1345	complete functional sets of fingerprints, either cards or
1346	1346	electronic, properly executed by a criminal justice agency or
1347	1347	an individual properly trained in fingerprinting techniques.
1348	1348	The fingerprints and form shall be submitted by the board to
1349	1349	the State Bureau of InvestigationsInvestigation of the Alabama
1350	1350	Law Enforcement Agency for the purposes of furnishing criminal
1351	1351	background checks. The State Bureau of
1352	1352	InvestigationsInvestigation shall forward a copy of the
1353	1353	applicant's prints to the Federal Bureau of Investigation for
1354	1354	a national criminal background check. The applicant shall pay
1355	1355	all costs associated with the background checks required by
1356	1356	this section.
1357	1357	(3) For purposes of this section, the term "applicant"
1358	1358	shall includeincludes every person who has any proprietary or
1359	1359	profit interest of 10 percent or more in the licensed
1360	1360	establishment, but shall not include any public corporation
1361	1361	whose shares are traded on a recognized stock exchange.
1362	1362	(4) The board shall keep information received pursuant
1363	1363	to this section confidential, except that information received
1364	1364	and relied upon in denying the issuance of a license in this
1365	1365	state may be disclosed as may be necessary to support the
1366	1366	denial or when subpoenaed from a court.
1367	1367	(d) Every license issued under this titlechapter shall
1368	1368	be constantly and conspicuously displayed on the licensed
1369	1369	premises.
1370	1370	(e) Each retail liquor license application must be
1371	1371	approved by the governing authority of the municipality if the
1372	1372	retailer is located in a municipality, or by the county
1373	1373	645
1374	1374	646
1375	1375	647
1376	1376	648
1377	1377	649
1378	1378	650
1379	1379	651
1380	1380	652
1381	1381	653
1382	1382	654
1383	1383	655
1384	1384	656
1385	1385	657
1386	1386	658
1387	1387	659
1388	1388	660
1389	1389	661
1390	1390	662
1391	1391	663
1392	1392	664
1393	1393	665
1394	1394	666
1395	1395	667
1396	1396	668
1397	1397	669
1398	1398	670
1399	1399	671
1400	1400	672 HB521 INTRODUCED
1401	1401	Page 25
1402	1402	retailer is located in a municipality, or by the county
1403	1403	commission if the retailer is located in the county and
1404	1404	outside the limits of the municipality, before the board shall
1405	1405	have authority to grant the license.
1406	1406	(f) Any retailer may be granted licenses to maintain,
1407	1407	operate, or conduct any number of places for the sale of
1408	1408	alcoholic beverages, but a separate license must be secured
1409	1409	for each place where alcoholic beverages are sold. No retail
1410	1410	license issued under this titlechapter shall be used for more
1411	1411	than one premises, nor for separate types of operation on the
1412	1412	same premises. Provided, however, any such licensed retail
1413	1413	operation existing on May 14, 2009, and operating based on
1414	1414	dual licenses, both a club or lounge license and a restaurant
1415	1415	license, on the same premises shall be exempt from the
1416	1416	requirement of the preceding sentence and may continue to
1417	1417	operate under the dual licenses. Any rule adopted by the board
1418	1418	relating to the requirements concerning dual licenses, both a
1419	1419	club or lounge license and a restaurant license, shall not
1420	1420	apply to any retail operation existing on May 14, 2009. The
1421	1421	rules shall include, but not be limited to, the maintenance of
1422	1422	separate books, separate entrances, and separate inventories.
1423	1423	Each premises must have a separate retail license. Where more
1424	1424	than one retail operation is located within the same building,
1425	1425	each operation under a separate or different ownership is
1426	1426	required to obtain a separate retail license; and where more
1427	1427	than one type of retail operation located within the same
1428	1428	building is operated by the same licensee, the licensee must
1429	1429	have a license for each type of retail operation. Provided,
1430	1430	there shall be no licenses issued by the board for the sale of
1431	1431	673
1432	1432	674
1433	1433	675
1434	1434	676
1435	1435	677
1436	1436	678
1437	1437	679
1438	1438	680
1439	1439	681
1440	1440	682
1441	1441	683
1442	1442	684
1443	1443	685
1444	1444	686
1445	1445	687
1446	1446	688
1447	1447	689
1448	1448	690
1449	1449	691
1450	1450	692
1451	1451	693
1452	1452	694
1453	1453	695
1454	1454	696
1455	1455	697
1456	1456	698
1457	1457	699
1458	1458	700 HB521 INTRODUCED
1459	1459	Page 26
1460	1460	there shall be no licenses issued by the board for the sale of
1461	1461	liquor, beer, or wine by rolling stores.
1462	1462	(g) No retailer shall sell any alcoholic beverages for
1463	1463	consumption on the licensed premises except in a room or rooms
1464	1464	or place on the licensed premises at all times accessible to
1465	1465	the use and accommodation of the general public; but this
1466	1466	section shall not be interpreted to prevent a hotel or club
1467	1467	licensee from selling alcoholic beverages in any room of the
1468	1468	hotel or club house occupied by a bona fide registered guest
1469	1469	or member or private party entitled to purchase the same.
1470	1470	(h) All beer, except draft or keg beer, sold by
1471	1471	retailers must be sold or dispensed in bottles, cans, or other
1472	1472	containers not to exceed 25.4 ounces. All wine sold by
1473	1473	retailers for off-premises consumption must be sold or
1474	1474	dispensed in bottles or other containers in accordance with
1475	1475	the standards of fill specified in the then effective
1476	1476	standards of fill for wine prescribed by the U.S. Treasury
1477	1477	Department.
1478	1478	(i) Draft or keg beer may be sold or dispensed within
1479	1479	this state within those counties in which and in the manner in
1480	1480	which the sale of draft or keg beer was authorized by law on
1481	1481	September 30, 1980, or in which the sale of draft or keg beer
1482	1482	is hereafter authorized by law. In rural communities with a
1483	1483	predominantly foreign population, after the payment of the tax
1484	1484	imposed by this title, draft or keg beer may be sold or
1485	1485	dispensed by special permit from the board, when, in the
1486	1486	judgment of the board, the use and consumption of draft or keg
1487	1487	beer is in accordance with the habit and customs of the people
1488	1488	of any such rural community. The board may grant to any civic
1489	1489	701
1490	1490	702
1491	1491	703
1492	1492	704
1493	1493	705
1494	1494	706
1495	1495	707
1496	1496	708
1497	1497	709
1498	1498	710
1499	1499	711
1500	1500	712
1501	1501	713
1502	1502	714
1503	1503	715
1504	1504	716
1505	1505	717
1506	1506	718
1507	1507	719
1508	1508	720
1509	1509	721
1510	1510	722
1511	1511	723
1512	1512	724
1513	1513	725
1514	1514	726
1515	1515	727
1516	1516	728 HB521 INTRODUCED
1517	1517	Page 27
1518	1518	of any such rural community. The board may grant to any civic
1519	1519	center authority or its franchisee or concessionaire, to which
1520	1520	the board may have issued or may simultaneously issue a retail
1521	1521	license under the provisions of this title, a revocable
1522	1522	temporary permit to sell or dispense in any part of its civic
1523	1523	center, for consumption therein, draft or keg beer. Either
1524	1524	permit shall be promptly revoked by the board if, in its
1525	1525	judgment, the same tends to create intemperance or is
1526	1526	prejudicial to the welfare, health, peace, temperance, and
1527	1527	safety of the people of the community or of the state.
1528	1528	(j) No importer shall sell alcoholic beverages to any
1529	1529	person other than a wholesaler licensee, or sell to a
1530	1530	wholesaler licensee any brand or brands of alcoholic beverages
1531	1531	for sale or distribution in this state, except where the
1532	1532	importer has been granted written authorization from the
1533	1533	manufacturer thereof to import and sell the brand or brands to
1534	1534	be sold in this state, which authorization is on file with the
1535	1535	board.
1536	1536	(k) No wholesaler shall maintain or operate any place
1537	1537	where sales are made other than that for which the wholesale
1538	1538	license is granted; provided, however, a wholesaler may be
1539	1539	licensed to sell and distribute liquor, wine, and beer, and
1540	1540	mixed spirit beverages . No wholesaler shall maintain any place
1541	1541	for the storage of liquor, wine, or beer, or mixed spirit
1542	1542	beverages unless the same has been approved by the board. No
1543	1543	wholesaler license shall be issued for any premises in any
1544	1544	part of which there is operated any retail license for the
1545	1545	sale of alcoholic beverages.
1546	1546	(l) Licenses issued under this titlechapter may not be
1547	1547	729
1548	1548	730
1549	1549	731
1550	1550	732
1551	1551	733
1552	1552	734
1553	1553	735
1554	1554	736
1555	1555	737
1556	1556	738
1557	1557	739
1558	1558	740
1559	1559	741
1560	1560	742
1561	1561	743
1562	1562	744
1563	1563	745
1564	1564	746
1565	1565	747
1566	1566	748
1567	1567	749
1568	1568	750
1569	1569	751
1570	1570	752
1571	1571	753
1572	1572	754
1573	1573	755
1574	1574	756 HB521 INTRODUCED
1575	1575	Page 28
1576	1576	(l) Licenses issued under this titlechapter may not be
1577	1577	assigned. The board may transfer any license from one person
1578	1578	to another, or from one place to another within the same
1579	1579	governing jurisdiction, or both, as the board may determine;
1580	1580	but no transfers shall be made to a person who would not have
1581	1581	been eligible to receive the license originally, nor for the
1582	1582	transaction of business at a place for which the license could
1583	1583	not originally have been issued lawfully.
1584	1584	(m) Every applicant for a transfer of a license shall
1585	1585	file a written application with the board within such time as
1586	1586	the board shall fix in its rules. Whenever any license is
1587	1587	transferred, there shall be collected a filing fee of fifty
1588	1588	dollars ($50), to be paid to the board, and the board shall
1589	1589	pay the fee into the State Treasury to the credit of the Beer
1590	1590	Tax and License Fund of the board.
1591	1591	(n) In the event that any person to whom a license has
1592	1592	been issued under the terms of this titlechapter becomes
1593	1593	insolvent, makes an assignment for the benefit of creditors,
1594	1594	or is adjudicated as bankrupt by either voluntary or
1595	1595	involuntary action, the license of the person shall
1596	1596	immediately terminate and be cancelledcanceled without any
1597	1597	action on the part of the board, and there shall be no refund
1598	1598	made, or credit given, for the unused portion of the license
1599	1599	fee for the remainder of the license year for which the
1600	1600	license was granted. Thereafter, no license shall be issued by
1601	1601	the board for the premises, wherein the license was conducted,
1602	1602	to any assignee, committee, trustee, receiver, or successor of
1603	1603	the licensee until a hearing has been held by the board as in
1604	1604	the case of a new application for license. In all such cases,
1605	1605	757
1606	1606	758
1607	1607	759
1608	1608	760
1609	1609	761
1610	1610	762
1611	1611	763
1612	1612	764
1613	1613	765
1614	1614	766
1615	1615	767
1616	1616	768
1617	1617	769
1618	1618	770
1619	1619	771
1620	1620	772
1621	1621	773
1622	1622	774
1623	1623	775
1624	1624	776
1625	1625	777
1626	1626	778
1627	1627	779
1628	1628	780
1629	1629	781
1630	1630	782
1631	1631	783
1632	1632	784 HB521 INTRODUCED
1633	1633	Page 29
1634	1634	the case of a new application for license. In all such cases,
1635	1635	the board shall have the sole and final discretion as to the
1636	1636	propriety of the issuance of a license for the premises, the
1637	1637	time it shall issue, and the period for which it shall be
1638	1638	issued, and shall have the further power to impose conditions
1639	1639	under which the licensed premises shall be conducted."
1640	1640	Section 6. Chapter 8B, commencing with Section 28-8B-1,
1641	1641	is added to Title 28 of the Code of Alabama 1975, to read as
1642	1642	follows:
1643	1643	§28-8B-1
1644	1644	(a) The Legislature hereby finds and declares that this
1645	1645	chapter is enacted pursuant to the authority granted to the
1646	1646	state under the Twenty-First Amendment to the United States
1647	1647	Constitution, the powers reserved to the state under the Tenth
1648	1648	Amendment to the United States Constitution, and the inherent
1649	1649	powers of the state under the Constitution of Alabama of 2022,
1650	1650	in order to regulate the traffic of alcoholic beverages and to
1651	1651	substitute the regulations and oversight established in this
1652	1652	act for the application of federal and state antitrust laws
1653	1653	that otherwise would apply to any potential anti-competitive
1654	1654	effects of this title. For the avoidance of doubt, the intent
1655	1655	of the Legislature is to maintain the uniform three-tier
1656	1656	system of control over the sale, purchase, taxation,
1657	1657	transportation, manufacture, consumption, and possession of
1658	1658	alcoholic beverages in the state to promote the health,
1659	1659	safety, and welfare of residents of this state by, among other
1660	1660	purposes, ensuring the state shall be able to register, audit,
1661	1661	inspect, seize, recall, and test alcoholic beverages shipped
1662	1662	into, distributed, and sold throughout this state; and this
1663	1663	785
1664	1664	786
1665	1665	787
1666	1666	788
1667	1667	789
1668	1668	790
1669	1669	791
1670	1670	792
1671	1671	793
1672	1672	794
1673	1673	795
1674	1674	796
1675	1675	797
1676	1676	798
1677	1677	799
1678	1678	800
1679	1679	801
1680	1680	802
1681	1681	803
1682	1682	804
1683	1683	805
1684	1684	806
1685	1685	807
1686	1686	808
1687	1687	809
1688	1688	810
1689	1689	811
1690	1690	812 HB521 INTRODUCED
1691	1691	Page 30
1692	1692	into, distributed, and sold throughout this state; and this
1693	1693	expression of the policy and intent of the Legislature is
1694	1694	intended to satisfy the clear articulation test for state
1695	1695	action immunity as has been established by the United States
1696	1696	Supreme Court in California Retail Liquor Dealers Assn. v.
1697	1697	Midcal Aluminum, Inc., et al.
1698	1698	(b) If any provision of this chapter, or its
1699	1699	application to any person or circumstance, is determined by a
1700	1700	court to be invalid or unconstitutional, that provision shall
1701	1701	be stricken and the remaining provisions shall be construed in
1702	1702	accordance with the intent of the Legislature to further limit
1703	1703	rather than expand commerce in alcoholic beverages, including
1704	1704	by prohibiting any commerce in alcoholic beverages not
1705	1705	expressly authorized, and to enhance strict regulatory control
1706	1706	over taxation, distribution, and sale of alcoholic beverages
1707	1707	through the existing uniform system of regulation of alcoholic
1708	1708	beverages.
1709	1709	§28-8B-2
1710	1710	(a) This chapter applies only to mixed spirit beverages
1711	1711	and does not apply to regulation of beer or wine franchises.
1712	1712	(b) Nothing in this chapter shall be deemed to repeal
1713	1713	or amend any existing beer or wine franchise laws. This
1714	1714	chapter is intended to address mixed spirit beverages, and to
1715	1715	leave in effect and unchanged any local or state franchise
1716	1716	laws existing on the effective date of this act.
1717	1717	§28-8B-3
1718	1718	(a) Each supplier of mixed spirit beverages licensed by
1719	1719	the board to sell its mixed spirit beverages within the State
1720	1720	of Alabama shall sell its mixed spirit beverages only through
1721	1721	813
1722	1722	814
1723	1723	815
1724	1724	816
1725	1725	817
1726	1726	818
1727	1727	819
1728	1728	820
1729	1729	821
1730	1730	822
1731	1731	823
1732	1732	824
1733	1733	825
1734	1734	826
1735	1735	827
1736	1736	828
1737	1737	829
1738	1738	830
1739	1739	831
1740	1740	832
1741	1741	833
1742	1742	834
1743	1743	835
1744	1744	836
1745	1745	837
1746	1746	838
1747	1747	839
1748	1748	840 HB521 INTRODUCED
1749	1749	Page 31
1750	1750	of Alabama shall sell its mixed spirit beverages only through
1751	1751	wholesaler licensees of the board and shall grant in writing
1752	1752	to each of its wholesalers a distribution agreement which
1753	1753	contains the wholesaler's exclusive sales territory for the
1754	1754	distribution of the supplier's designated brand in accordance
1755	1755	with Chapter 8.
1756	1756	(b) A licensed retailer may not purchase mixed spirit
1757	1757	beverages from any entity other than the licensed wholesaler
1758	1758	designated by the manufacturer of the mixed spirit beverages.
1759	1759	§28-8B-4
1760	1760	(a) For the purposes of this chapter, the following
1761	1761	terms have the following meanings:
1762	1762	(1) DISTRIBUTION AGREEMENT. Any written and signed
1763	1763	agreement between a wholesaler and a supplier, whereby a
1764	1764	wholesaler is granted the right to purchase and sell a brand
1765	1765	of mixed spirit beverages sold by a supplier.
1766	1766	(2) FAIR MARKET VALUE. An amount equal to a multiple of
1767	1767	the wholesaler's gross profit on the wholesaler's sales of the
1768	1768	supplier's products in the 12-month period immediately
1769	1769	preceding the date of the notice of termination or non-renewal
1770	1770	by supplier.
1771	1771	(3) GOOD CAUSE. A material breach by the wholesaler of
1772	1772	an essential element in a distribution agreement with a
1773	1773	supplier which is uncured or which reoccurs three or more
1774	1774	times.
1775	1775	(4) GROSS PROFIT. The wholesaler's selling price, net
1776	1776	of promotions, discounts, allowances, and freight, of the
1777	1777	products sold during such 12-month period, less the
1778	1778	wholesaler's cost to purchase the products from the supplier,
1779	1779	841
1780	1780	842
1781	1781	843
1782	1782	844
1783	1783	845
1784	1784	846
1785	1785	847
1786	1786	848
1787	1787	849
1788	1788	850
1789	1789	851
1790	1790	852
1791	1791	853
1792	1792	854
1793	1793	855
1794	1794	856
1795	1795	857
1796	1796	858
1797	1797	859
1798	1798	860
1799	1799	861
1800	1800	862
1801	1801	863
1802	1802	864
1803	1803	865
1804	1804	866
1805	1805	867
1806	1806	868 HB521 INTRODUCED
1807	1807	Page 32
1808	1808	wholesaler's cost to purchase the products from the supplier,
1809	1809	net of any discounts, promotions, and allowances from
1810	1810	supplier.
1811	1811	(b) Upon a supplier's termination or non-renewal of a
1812	1812	distribution agreement with a wholesaler, except where
1813	1813	termination or non-renewal is for good cause, the supplier
1814	1814	shall pay the wholesaler reasonable compensation in an amount
1815	1815	equal to the fair market value of the wholesaler's business
1816	1816	attributable to the supplier's portfolio, including the value
1817	1817	of the distribution rights, current saleable inventory,
1818	1818	goodwill, and other relevant assets.
1819	1819	(c) The supplier and wholesaler shall have 30 days
1820	1820	following receipt of the supplier's notice of termination or
1821	1821	non-renewal to agree upon a multiple of gross profit in
1822	1822	determining fair market value. Following the notice of
1823	1823	termination or non-renewal, but prior to determination of the
1824	1824	fair market value of the supplier's portfolio, the supplier
1825	1825	and wholesaler shall each continue to operate in good faith in
1826	1826	the regular course of the business relationship.
1827	1827	(d)(1) In determining fair market value, in the event
1828	1828	that supplier and wholesaler cannot agree upon the multiple of
1829	1829	gross profit after 30 days, the parties shall then have 10
1830	1830	business days to each, at their own cost, appoint an
1831	1831	independent third-party appraiser with demonstrable experience
1832	1832	in valuating alcohol beverage distribution rights. Each
1833	1833	party's independent appraiser, within 30 days, shall submit in
1834	1834	writing the fair market value appraisal of the supplier's
1835	1835	portfolio, including disclosing the multiple of gross profit
1836	1836	used to arrive at the valuation.
1837	1837	869
1838	1838	870
1839	1839	871
1840	1840	872
1841	1841	873
1842	1842	874
1843	1843	875
1844	1844	876
1845	1845	877
1846	1846	878
1847	1847	879
1848	1848	880
1849	1849	881
1850	1850	882
1851	1851	883
1852	1852	884
1853	1853	885
1854	1854	886
1855	1855	887
1856	1856	888
1857	1857	889
1858	1858	890
1859	1859	891
1860	1860	892
1861	1861	893
1862	1862	894
1863	1863	895
1864	1864	896 HB521 INTRODUCED
1865	1865	Page 33
1866	1866	used to arrive at the valuation.
1867	1867	(2) If the independent appraisers' valuations of the
1868	1868	supplier's portfolio are within 10 percent of each other, the
1869	1869	fair market value shall be the average of the two valuations.
1870	1870	(3) If the independent appraisers' valuations are not
1871	1871	within 10 percent of each other, a third independent appraiser
1872	1872	with experience in valuating alcohol beverage distribution
1873	1873	rights shall be retained by mutual agreement of the parties
1874	1874	within 10 business days to assess the fair market value, and
1875	1875	the fair market value shall be submitted in writing by the
1876	1876	third independent appraiser within 30 days. The cost of the
1877	1877	third independent appraiser shall be shared equally by the
1878	1878	parties. The fair market value shall then be the average of:
1879	1879	(i) the third independent appraiser's valuation and (ii) the
1880	1880	average of the first two valuations.
1881	1881	(e) The supplier shall have no more than seven business
1882	1882	days after the determination of fair market value within which
1883	1883	to remit payment of reasonable compensation to the wholesaler.
1884	1884	Section 7. If any provision of this act, or its
1885	1885	application to any person or circumstance, is determined by a
1886	1886	court to be invalid or unconstitutional, that provision shall
1887	1887	be stricken and the remaining provisions shall be construed in
1888	1888	accordance with the intent of the Legislature to further limit
1889	1889	rather than expand commerce in alcoholic beverages, including
1890	1890	by prohibiting any commerce in alcoholic beverages not
1891	1891	expressly authorized, and to enhance strict regulatory control
1892	1892	over taxation, distribution, and sale of alcoholic beverages
1893	1893	through the existing uniform system of regulation of alcoholic
1894	1894	beverages.
1895	1895	897
1896	1896	898
1897	1897	899
1898	1898	900
1899	1899	901
1900	1900	902
1901	1901	903
1902	1902	904
1903	1903	905
1904	1904	906
1905	1905	907
1906	1906	908
1907	1907	909
1908	1908	910
1909	1909	911
1910	1910	912
1911	1911	913
1912	1912	914
1913	1913	915
1914	1914	916
1915	1915	917
1916	1916	918
1917	1917	919
1918	1918	920
1919	1919	921
1920	1920	922
1921	1921	923
1922	1922	924 HB521 INTRODUCED
1923	1923	Page 34
1924	1924	beverages.
1925	1925	Section 8. This act shall become effective on October
1926	1926	1, 2025.
1927	1927	925
1928	1928	926