HB521INTRODUCED
Page 0
HB521
CXPMUQJ-1
By Representatives Lipscomb, Moore (P), Underwood, Kirkland,
Robertson, Oliver, Shaw, Holk-Jones, Starnes, Easterbrook,
England, Daniels, McCampbell, Gray, Lawrence
RFD: Economic Development and Tourism
First Read: 03-Apr-25
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7 CXPMUQJ-1 04/02/2025 JC (L)lg 2025-1518
Page 1
First Read: 03-Apr-25
SYNOPSIS:
Existing law makes no specific provisions
regarding the retail sale, wholesale, or tax on the
sale of low-alcohol by volume content beverages made
from liquor. These beverages are regulated like liquor.
They are not available for distribution through beer
and table wine wholesalers and are only sold in ABC
stores.
This bill would define a new category of ready
to drink mixed liquor beverages containing no more than
seven percent alcohol by volume, called "mixed spirit
beverages."
This bill would institute a licensing structure
in Alabama for mixed spirit beverages, which would
require all mixed spirit beverages, other than those
sold in Alabama Beverage Control Board stores, to be
distributed through licensed wholesalers to licensed
retailers for on-premise and off-premise consumption.
This bill would provide for the levy of a
privilege or excise tax on mixed spirit beverages.
This bill would require suppliers of mixed
spirit beverages to designate exclusive sales
territories for each brand and enter into a
distribution agreement with a licensed wholesaler for
each sales territory.
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each sales territory.
This bill would also set requirements for
distribution agreements between suppliers and wholesale
distributors of mixed spirit beverages for no-cause
termination or nonrenewal of a distribution agreement.
A BILL
TO BE ENTITLED
AN ACT
Relating to alcoholic beverages; to amend Sections
28-3-1, 28-3A-3, 28-3A-21, and 28-3A-23, Code of Alabama 1975;
to define a new category of low-alcohol content liquor
beverages called mixed spirit beverages; to add Section
28-3-208 to the Code of Alabama 1975, to levy an excise tax
upon the distribution of mixed spirit beverages; to add
Section 28-3A-9.1 to the Code of Alabama 1975, to provide a
license for wholesalers of mixed spirit beverages; to add
Section 28-3A-17.3, to provide licenses for retailers of mixed
spirit beverages; to set fees for the licenses; and to add
Chapter 8B to Title 28 of the Code of Alabama 1975; to require
licensed importers, manufacturers, and suppliers of mixed
spirit beverages to enter into exclusive sales territory
distribution agreements with wholesalers.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 28-3-1, Code of Alabama 1975, is
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Section 1. Section 28-3-1, Code of Alabama 1975, is
amended to read as follows:
"§28-3-1
As used in this title, the following words shall have
the following meanings unless the context clearly indicates
otherwise:
(1) ALCOHOLIC BEVERAGES. Any alcoholic, spirituous,
vinous, fermented, or other alcoholic beverage, or combination
of liquors and mixed liquor, a part of which is spirituous,
vinous, fermented, or otherwise alcoholic, and all drinks or
drinkable liquids, preparations , or mixtures intended for
beverage purposes, which contain one-half of one percent or
more of alcohol by volume , and shall include . The term
includes liquor, beer, and wine, and mixed spirit beverages .
(2) ASSOCIATION. A partnership, limited partnership, or
any form of unincorporated enterprise owned by two or more
persons.
(3) BEER, or MALT OR BREWED BEVERAGES. Any beer, lager
beer, ale, porter, malt or brewed beverage, or similar
fermented beverage containing one-half of one percent or more
of alcohol by volume and not in excess of thirteen and
nine-tenths13.9 percent alcohol by volume, brewed or produced
from malt, wholly or in part, or from rice, grain of any kind,
bran, glucose, sugar, or molasses. A beer or malt or brewed
beverage may incorporate honey, fruit, fruit juice, fruit
concentrate, herbs, spices, or other flavorings during the
fermentation process. The term does not include any product
defined as liquor, table wine, or wine, or mixed spirit
beverages.
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beverages.
(4) BOARD. The Alcoholic Beverage Control Board.
(5) BRANDY. All beverages that are an alcoholic
distillate from the fermented juice, mash, or wine of fruit,
or from the residue thereof, produced in such manner that the
distillate possesses the taste, aroma, and characteristics
generally attributed to the beverage, as bottled at not less
than 80 degree proof.
(6) CARTON. The package or container or containers in
which alcoholic beverages are originally packaged for shipment
to market by the manufacturer or its designated
representatives or the importer.
(7) CIDER. A fermented alcoholic beverage made from
apple juice and containing not more than 8.5 percent alcohol
by volume.
(8) CLUB.
a. Class I. A corporation or association organized or
formed in good faith by authority of law and which must have
at least 150 paid-up members. It must be the owner, lessee, or
occupant of an establishment operated solely for the objects
of a national, social, patriotic, political, or athletic
nature or the like, but not for pecuniary gain, and the
property as well as the advantages of which, belong to all the
members and which maintains an establishment provided with
special space and accommodations where, in consideration of
payment, food with or without lodging is habitually served.
The club shall hold regular meetings, continue its business
through officers regularly elected, admit members by written
application, investigation, and ballot, and charge and collect
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application, investigation, and ballot, and charge and collect
dues from elected members.
b. Class II. A corporation or association organized or
formed in good faith by authority of law and which must have
at least 100 paid-up members. It must be the owner, lessee, or
occupant of an establishment operated solely for the objects
of a national, social, patriotic, political, or athletic
nature or the like. The club shall hold regular meetings,
continue its business through officers regularly elected,
admit members by written application, investigation, and
ballot, and charge and collect dues from elected members.
(9) CONTAINER. The single bottle, can, keg, bag, or
other receptacle, but not a carton, in which alcoholic
beverages are originally packaged for the market by the
manufacturer or importer and from which the alcoholic beverage
is consumed by or dispensed to the public.
(10) CORPORATION. A corporation or joint stock
association organized under the laws of this state, the United
States, or any other state, territory , or foreign country, or
dependency.
(11) DELIVERY. The transportation of alcoholic
beverages directly from a retail licensee of the board to an
individual, pursuant to Section 28-1-4 and Section 28-3A-13.1.
(12) DELIVERY SERVICE LICENSE. A license issued by the
Alabama Alcoholic Beverage Control Board in accordance with
Section 28-3A-13.1 that authorizes the licensee, the
licensee's employees, or independent contractors under a
contractual or business arrangement with the licensee to
transport and deliver alcoholic beverages.
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transport and deliver alcoholic beverages.
(13) DRY COUNTY. Any county which by a majority of
those voting voted in the negative in an election heretofore
held under the applicable statutes at the time of the election
or may hereafter vote in the negative in an election or
special method referendum hereafter held in accordance with
Chapter 2, or held in accordance with the provisions of any
act hereafter enacted permitting such election.
(14) DRY MUNICIPALITY. Any municipality within a wet
county which has, by its governing body or by a majority of
those voting in a municipal election heretofore held in
accordance with the provisions of Section 28-2-22, or in a
municipal option election heretofore or hereafter held in
accordance with the provisions of Act 84-408, Acts of Alabama
1984, appearing as Chapter 2A, or any act hereafter enacted
permitting municipal option election, voted to exclude the
sale of alcoholic beverages within the corporate limits of the
municipality.
(15) EMPLOYEE. An individual to whom an employer is
required to issue a W-2 tax form under federal law.
(16) GENERAL WELFARE PURPOSES. All of the following:
a. The administration of public assistance as set out
in Sections 38-2-5 and 38-4-1.
b. Services, including supplementation and
supplementary services under the federal Social Security Act,
to or on behalf of persons to whom public assistance may be
given under Sections 38-2-5 and 38-4-1.
c. Service to and on behalf of dependent, neglected, or
delinquent children.
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delinquent children.
d. Investigative and referral services to and on behalf
of needy persons.
(17) HEARING COMMISSION. A body appointed by the board
to hear and decide all contested license applications and all
disciplinary charges against any licensee for violation of
this title or the rules of the board.
(18) HOTEL. A building or buildings held out to the
public for housing accommodations of travelers or transients,
and shall include a motel, but shall not include a rooming
house or boarding house.
(19) IMPORTER. Any person, association, or corporation
engaged in importing alcoholic beverages, liquor, wine, or
beer, or mixed spirit beverages manufactured outside of the
United States of America into this state or for sale or
distribution in this state, or to the board or to a licensee
of the board.
(20) INDEPENDENT CONTRACTOR. An individual to whom an
employer is required to issue a 1099 tax form under federal
law.
(21) KEG. A pressurized factory sealed container with a
capacity equal to or greater than five U.S. gallons, from
which beer is withdrawn by means of an external tap.
(22) LIQUOR. Any alcoholic, spirituous, vinous,
fermented, or other alcoholic beverage, or combination of
liquors and mixed liquor, a part of which is spirituous,
fermented, vinous, or otherwise alcoholic, and all drinks or
drinkable liquids, preparations, or mixtures intended for
beverage purposes, which contain one-half of one percent or
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beverage purposes, which contain one-half of one percent or
more of alcohol by volume, except beer ,and table wine, and
mixed spirit beverages .
(23) LIQUOR STORE. A liquor store operated by the
board, where alcoholic beverages other than beer are
authorized to be sold in unopened containers.
(24) MANUFACTURER. Any person, association, or
corporation engaged in the producing, bottling, manufacturing,
distilling, fermenting, brewing, rectifying, or compounding of
alcoholic beverages, liquor, beer, or wine, or mixed spirit
beverages in this state or for sale or distribution in this
state or to the board or to a licensee of the board.
(25) MEAD. An alcoholic beverage produced by fermenting
a solution of honey and water with grain mash and containing
not more than 18 percent alcohol by volume.
(26) MEAL. A diversified selection of food some of
which is not susceptible of being consumed in the absence of
at least some articles of tableware and which cannot be
conveniently consumed while one is standing or walking about.
(27) MINOR. Any person under 21 years of age; provided,
however, in the event Section 28-1-5 ,shall beis repealed or
otherwise shall be no longer in effect, thereafter the
provisions of Section 26-1-1, shall govern.
(28) MIXED SPIRIT BEVERAGES. A single-serve beverage
containing liquor, packaged in a can or other container
approved by the board no larger than 16 ounces, and which
contains no more than seven percent alcohol by volume. The
term does not include any beverage containing liquor over 16
ounces in size or of more than seven percent alcohol by
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ounces in size or of more than seven percent alcohol by
volume.
(29) MUNICIPALITY. Any incorporated city or town of
this state to include its police jurisdiction.
(29)30 PERSON. Every natural person, association, or
corporation. Whenever used in a clause prescribing or imposing
a fine or imprisonment, or both, such the term as applied to
an association shall mean the partners or members thereof and
as applied to a corporation shall mean the officers thereof,
except as to incorporated clubs the term person shall mean
such means an individual or individuals who, under the bylaws
of such clubs, shall have jurisdiction over the possession and
sale of liquor therein.
(30)(31) POPULATION. The population according to the
last preceding or any subsequent decennial census of the
United States, except where a municipality is incorporated
subsequent to the last census, in which event, its population
until the next decennial census shall be the population of the
municipality as determined by the judge of probate of the
county as the official population on the date of its
incorporation.
(31)(32) RESTAURANT. A reputable place licensed as a
restaurant, operated by a responsible person of good
reputation, and habitually and principally used for the
purpose of preparing and serving meals for the public to
consume on the premises.
(32)(33) RETAILER. Any person licensed by the board to
engage in the retail sale of any alcoholic beverages to the
consumer.
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consumer.
(33)(34) SALE or SELL. Any transfer of liquor, wine ,or
beer, or mixed spirit beverages for a consideration, and any
gift in connection with, or as a part of, a transfer of
property other than liquor, wine, or beer,or mixed spirit
beverages for a consideration.
(34)(35) SELLING PRICE. The total marked-up price of
spirituous or vinous liquors sold by the board, exclusive of
taxes levied thereon.
(35)(36) TABLE WINE. Except as otherwise provided in
this subdivision, any wine containing not more than 24 percent
alcohol by volume. Table wine does not include any wine
containing more than sixteen and one-half 16.5 percent alcohol
by volume that is made with herbs or flavors, except vermouth,
or is an imitation or other than standard wine. Table wine is
not liquor, spirituous, or vinous.
(36)(37) UNOPENED CONTAINER. A container containing
alcoholic beverages, which has not been opened or unsealed
subsequent to filling and sealing by the manufacturer or
importer.
(37)(38) WET COUNTY. Any county which by a majority of
those voting voted in the affirmative in an election
heretofore held in accordance with the statutes applicable at
the time of the election or may hereafter vote in the
affirmative in an election or special method referendum held
in accordance with Chapter 2, or other statutes applicable at
the time of the election.
(38)(39) WET MUNICIPALITY. Any municipality in a dry
county which by a majority of those voting voted in the
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county which by a majority of those voting voted in the
affirmative in a municipal option election heretofore or
hereafter held in accordance with the provisions of Act
84-408, Acts of Alabama 1984, appearing as Chapter 2A of this
title, as amended, or any act hereafter enacted permitting
municipal option election, or any municipality which became
wet by vote of the governing body or by the voters of the
municipality heretofore or hereafter held under the special
method referendum provisions of Section 28-2-22, or as
hereafter provided, where the county has become dry subsequent
to the elected wet status of the municipality.
(39)(40) WHOLESALER. Any person licensed by the board
to engage in the sale and distribution of table wine ,and
beer, or mixed spirit beverages, or either anycombination
thereofof them, within this state, at wholesale only, to be
sold by export or to retail licensees or other wholesale
licensees or others within this state lawfully authorized to
sell table wine, and beer, or mixed spirit beverages, or
either any combination thereof of them, for the purpose of
resale only.
(40)(41) WINE. All beverages made from the fermentation
of fruits, berries, or grapes, with or without added spirits,
and produced in accordance with the laws and regulations of
the United States, containing not more than 24 percent alcohol
by volume, and shall include all sparkling wines, carbonated
wines, special natural wines, rectified wines, vermouths,
vinous beverages, vinous liquors, and like products, including
restored or unrestored pure condensed juice."
Section 2. Section 28-3-208 is added to the Code of
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Section 2. Section 28-3-208 is added to the Code of
Alabama 1975, to read as follows:
§28-3-208
(a) There is levied, in addition to the license taxes
provided for by this chapter and municipal and county license
taxes, a privilege or excise tax measured by and graduated in
accordance with the volume of sales of mixed spirit beverages,
which shall be an amount equal to two and nine-tenths cents
($.029) per ounce or fractional part thereof.
(b)(1)a. The tax levied by subsection (a) shall be
added to the sales price of all mixed spirit beverages and
collected from the purchaser. The tax shall be collected in
the first instance from the wholesaler where mixed spirit
beverages are sold or handled by wholesale licensees.
b. It shall be unlawful for any person who is required
to pay the tax in the first instance to fail or refuse to add
to the sales price and collect from the purchaser the required
amount of tax, it being the intent and purpose of this section
that the tax levied is in fact a levy on the consumer. The
person who pays the tax in the first instance is acting as an
agent of the state for the collection and payment of the tax
and as such may not collect a tax on mixed spirit beverages
for any other level of government.
(2) The tax levied by subsection (a) shall be collected
by a monthly return as follows:
a. The wholesaler shall file a monthly return with the
board no later than the 15th day of the second month following
the month of receipt of mixed spirit beverages by the
wholesaler on a form prescribed by the board showing receipts
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wholesaler on a form prescribed by the board showing receipts
by the wholesaler from manufacturers, importers, or other
wholesaler licensees during the month of receipt and the tax
due thereon at the rate of two and nine-tenths cents ($.029)
per ounce of mixed spirit beverages sold to the wholesaler.
The tax due at this rate shall be remitted to the board along
with the return.
b. A wholesaler shall file a monthly return with the
county or municipality within which the mixed spirit beverage
is sold at retail not later than the 15th day of each month,
showing sales by wholesalers during the preceding month and
the tax due thereon at the rate of two thousandths cents
($.002) per ounce sold. The tax due at this rate shall be
remitted to the county or municipality along with the return.
(3) The board and the governing body of each county and
municipality served by the wholesaler shall have the authority
to examine the books and records of the wholesaler who sells,
stores, or receives for the purpose of distribution any mixed
spirit beverages, to determine the accuracy of any return
required to be filed with it.
(c) The proceeds of the tax levied by subsection (a)
and remitted pursuant to subsection (b) shall be paid and
distributed as follows:
(1) One-half of the mixed spirit beverages tax shall be
deposited in the State General Fund.
(2) The remaining one-half of the mixed spirit
beverages tax shall be retained by the board for regulatory,
enforcement, and administrative purposes.
(3) The mixed spirit beverage tax remitted by the
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(3) The mixed spirit beverage tax remitted by the
wholesaler to either the county or municipality under
paragraph (b)(2)b. shall be distributed as provided in Section
28-3-190.
(d) The tax levied under this section is exclusive and
shall be in lieu of all other and additional taxes and
licenses of the state, county, or municipality, imposed on or
measured by the sale or volume of sale of mixed spirit
beverages; provided, that nothing contained in this section
shall be construed to exempt the retail sale of mixed spirit
beverages from the levy of tax on general retail sales by the
state, county, or municipality in the nature of, or in lieu
of, a general sales tax.
(e) The tax levied by subsection (a) shall not be
imposed upon the sale, trade, or barter of mixed spirit
beverages by one licensed wholesaler to another wholesaler
licensed to sell and handle mixed spirit beverages in this
state, which transaction is made exempt from the tax;
provided, however, the board may require written reporting of
any such transaction in the form as the board may prescribe
pursuant to paragraph (b)(2)a.
(f) Each county and municipality may fix a reasonable
privilege or license fee on retail, importer, and wholesale
licensees, for the purpose of covering the cost of
administration with respect to the sale of mixed spirit
beverages, but not to generate revenue; provided, however, a
county or municipality may not levy a license or privilege tax
or other charge for the privilege of doing business as a mixed
spirit beverages wholesaler, importer, or retailer which shall
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spirit beverages wholesaler, importer, or retailer which shall
exceed one-half the amount of the state license fee.
Section 3. Section 28-3A-3 Code of Alabama 1975, is
amended to read as follows:
"§28-3A-3
(a)(1) Subject to this chapter and rules adopted
thereunder, the board may issue and renew licenses to
reputable and responsible persons for the following purposes:
(1)a. To manufacture, brew, distill, ferment, rectify,
bottle, or compound any or all alcoholic beverages within or
for sale within this state.
(2)b. To import any or all alcoholic beverages
manufactured outside the United States into this state or for
sale or distribution within this state.
(3)c. To distribute, wholesale, or act as jobber for
the sale of liquor.
(4)d. To distribute, wholesale, or act as jobber for
the sale of table wine and beer or either of them , beer, or
mixed spirit beverages alone or in any combination to licensed
retailers within the state and others within this state
lawfully authorized to sell table wine , or beer, or mixed
spirit beverages .
(5)e. To store or warehouse any or all alcoholic
beverages for transshipment inside and outside the state.
(6)f. To sell and dispense at retail , in a lounge,
liquor and other alcoholic beverages for on-premises
consumption.
(7)g. To sell and dispense at retail in an
establishment habitually and principally used for the purpose
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establishment habitually and principally used for the purpose
of providing meals for the public, liquor and other , in a
restaurant, alcoholic beverages for on-premises consumption.
(8)h. To sell liquor and wine at retail for
off-premises consumption.
(9)i. To sell and dispense at retail , in a club, liquor
and other alcoholic beverages for on-premises consumption.
(10)j. To sell table wine at retail for off-premises
consumption.
(11)k. To sell table wine at retail for on-premises and
off-premises consumption.
(12)l. To sell beer at retail for on-premises and
off-premises consumption.
(13)m. To sell beer at retail for off-premises
consumption.
n. To sell mixed spirit beverages at retail for
on-premises and off-premises consumption.
o. To sell mixed spirit beverages at retail for
off-premises consumption.
(14)p. To sell liquor and other alcoholic beverages at
retail by a retail common carrier with a passenger capacity of
at least 10 people.
(15)q. To sell any or all alcoholic beverages at retail
under a special license issued conditioned upon terms and
conditions and for the period of time prescribed by the board.
(16)r. To sell any or all alcoholic beverages at retail
under a special event retail license issued for three days
upon the terms and conditions prescribed by the board.
(2) Provided, however, that the Notwithstanding
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(2) Provided, however, that the Notwithstanding
subdivision (1), licenses authorized under subdivision (1) may
not be issued in dry counties where traffic in alcoholic
beverages is not authorized by law , therein except a wine
manufacturer license may be issued in a dry county pursuant to
Section 28-7-10.1. Provided theThe restriction of this
paragraphsubdivision shall not apply to the issuance of a
renewal of a license under subdivisions (1), (2), (3), (4),
and (5)paragraphs (1)a. through (1)e. where the county or
municipality was wet when the initial license was issued and
the county or municipality subsequently votes dry; however, no
importer or wholesaler licensee may sell or distribute
alcoholic beverages within a dry county, except in a wet
municipality therein, or within a dry municipality.
(b) The board is granted discretionary powers in acting
upon license applications under the provisions of this
chapter.
(c) Licenses issued under this chapter, unless revoked
or suspended in the manner provided in this chapter, shall be
valid for the license year which shall begin on the first day
of October of each year, unless otherwise established by this
chapter or by the board. Licenses may be issued at any time
during the year."
Section 4. Section 28-3A-9.1 and 28-3A-17.3 are added
to the Code of Alabama 1975, to read as follows:
§28-3A-9.1
(a) Upon payment of the applicable fee for a mixed
spirit beverages wholesaler license as established in Section
28-3A-21, and the applicant's compliance with this chapter and
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28-3A-21, and the applicant's compliance with this chapter and
rules adopted pursuant to this chapter, the board shall issue
to a wholesaler a mixed spirit beverage wholesaler license.
(b) A mixed spirit beverage wholesaler license shall
authorize the licensee to do all of the following:
(1) Import and receive shipments of mixed spirit
beverages from outside the state from licensed manufacturers.
(2) Purchase mixed spirit beverages from licensed
manufacturers or other licensed wholesalers within the state.
(3) Sell at wholesale or distribute mixed spirit
beverages to all licensees or other persons within this state
lawfully authorized to sell mixed spirit beverages within the
state.
(4) Export mixed spirit beverages from the state.
(c) Sales to all authorized persons shall be in
original packages or containers as approved by the board and
prepared for the market by the manufacturer.
(d)(1) Except as provided in this section, no person
shall sell at wholesale or distribute mixed spirit beverages
within this state unless the person is issued by the board a
wholesaler license to distribute mixed spirit beverages.
(2) Notwithstanding this section, Section 28-3A-17.3,
or Chapter 8B, the board shall retain the authority to act as
a wholesaler of mixed spirit beverages, provided the board, as
a wholesaler, shall only distribute mixed spirit beverages to
state liquor stores.
§28-3A-17.3
(a) Upon payment of the limited mixed spirit beverage
expanded retail license fee as established in Section
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expanded retail license fee as established in Section
28-3A-21, the board shall issue a limited mixed spirit
expanded retail license to any person who holds and possesses
any of the following:
(1) A valid retail table wine license for on-premises
and off-premises consumption as provided for in Section
28-3A-14.
(2) A valid retail table wine license for off-premises
consumption as provided for in Section 28-3A-15.
(3) A valid retail beer license for on-premises and
off-premises consumption as provided for in Section 28-3A-16.
(4) A valid retail beer license for off-premises
consumption as provided for in Section 28-3A-17.
(b) Upon written request to the board and without
payment of any additional fee in connection therewith, the
board shall issue a limited mixed spirit beverage expanded
retail license to any person who holds and possesses any of
the following:
(1) A valid lounge retail liquor license as provided
for in Section 28-3A-11.
(2) A valid club liquor retail license as provided for
in Section 28-3A-12.
(3) A valid restaurant retail liquor as provided for in
Section 28-3A-13.
(4) A special events retail license as provided for in
Section 28-3A-20.
(c) Each liquor store operated by the board for retail
sales only and not for sales to any person identified in
subsection (a) or (b) shall be authorized to purchase mixed
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subsection (a) or (b) shall be authorized to purchase mixed
spirit beverages from a licensed mixed spirit beverages
wholesaler and sell the mixed spirit beverages at retail
commensurate with the privileges granted to the state liquor
store to sell other alcoholic beverages.
(d) A license issued under this section shall authorize
the licensee to purchase mixed spirit beverages from a
licensed mixed spirit beverages wholesaler and sell the mixed
spirit beverages at retail commensurate with the privileges
granted to the licensee to sell beer and table wine.
(e) The board shall retain all limited mixed spirit
expanded retail licensing fees collected. The board may use
collected fees for regulatory and administrative purposes as
determined by the board in its discretion, including for the
purposes of replenishing the Cost of Evidence Fund established
pursuant to Section 28-3-55 to assist in the regulatory
functions of the board.
(f) Upon payment of a limited mixed spirit expanded
retail license fee, there shall be no additional licensing or
administrative requirements, including no requirement for
additional background checks imposed by the city, county, or
state for licensees for the sale of mixed spirit beverages.
Section 5. Sections 28-3A-21 and 28-3A-23, Code of
Alabama 1975, are amended to read as follows:
"§28-3A-21
(a) The following annual license fees are levied and
prescribed for licenses issued and renewed by the board
pursuant to the authority contained in this chapter:
(1) Manufacturer license, license fee of five hundred
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(1) Manufacturer license, license fee of five hundred
dollars ($500).
(2) Importer license, license fee of five hundred
dollars ($500).
(3) Liquor wholesalewholesaler license, license fee of
five hundred dollars ($500).
(4) WholesalerBeer wholesaler license, beer license fee
of five hundred fifty dollars ($550) or wine license fee of
five hundred fifty dollars ($550); license fee for beer and
wine of seven hundred fifty dollars ($750); plus two hundred
dollars ($200) for each warehouse in addition to the principal
warehouse.
(5) Wine wholesaler license, license fee of five
hundred fifty dollars ($550) plus two hundred dollars ($200)
for each warehouse in addition to the principal warehouse.
(6) Mixed spirit beverage wholesaler license, license
fee of five hundred fifty dollars ($550) plus two hundred
dollars ($200) for each warehouse in addition to the principal
warehouse.
(7) Beer, wine, and mixed spirit beverage wholesaler
license, license fee of one thousand dollars ($1,000) plus two
hundred dollars ($200) for each warehouse in addition to the
principal warehouse.
(5)(8) Warehouse license, license fee of two hundred
dollars ($200).
(6)(9) Lounge retail liquor license, license fee of
three hundred dollars ($300).
(7)(10) Restaurant retail liquor license, license fee
of three hundred dollars ($300).
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of three hundred dollars ($300).
(8)(11) Club liquor license, Class I license fee of
three hundred dollars ($300), Class II license fee of seven
hundred fifty dollars ($750).
(9)(12) Retail table wine license for off-premises
consumption, license fee of one hundred fifty dollars ($150).
(10)(13) Retail table wine license for on-premises and
off-premises consumption, license fee of one hundred fifty
dollars ($150).
(11)(14) Retail beer license for on-premises and
off-premises consumption, license fee of one hundred fifty
dollars ($150).
(12)(15) Retail beer license for off-premises
consumption, license fee of one hundred fifty dollars ($150).
(13)(16) Retail common carrier liquor license, license
fee of one hundred fifty dollars ($150) for each railroad,
airline, bus line, ship line, vessel , or other common carrier
entity with a vehicle passenger capacity of at least 10
people.
(14)(17) Special retail license, license fee of one
hundred dollars ($100) for 30 days or less; license fee of two
hundred fifty dollars ($250) for more than 30 days.
(15)(18) Special events retail license, license fee of
one hundred fifty dollars ($150).
(19) Mixed spirit expanded retail license, license fee
of five hundred dollars ($500).
(b) The license fees levied and fixed by this section
shall be paid before the license is issued or renewed.
(c) In addition to the foregoing filing fee and license
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(c) In addition to the foregoing filing fee and license
taxes or fees, any county or municipality in which the sale of
alcoholic beverages is permitted shall be authorized to may fix
and levy privileges or license taxes on any of the foregoing
licenses located or operated therein, conditioned on a permit
or license being issued by the board.
(d) No county or municipality shall have any authority
to levy a license or tax of any nature on any liquor store."
"§28-3A-23
(a) No license prescribed in this titlechapter shall be
issued or renewed until the provisions of this titlechapter
have been complied with and the filing and license fees other
than those levied by a municipality are paid to the board.
(b) Licenses shall be granted and issued by the board
only to reputable individuals, to associations whose members
are reputable individuals, or to reputable corporations
organized under the laws of this state or duly qualified
thereunder to do business in Alabama, or, in the case of
manufacturers, duly registered under the laws of Alabama, and
then only when it appears that all officers and directors of
the corporation are reputable individuals.
(c)(1) In addition to all other requirements, an
applicant for a license under this section shall submit to the
board a form, sworn to by the applicant, providing written
consent from the applicant for the release of criminal history
background information. The form shall also require the
applicant's name, date of birth, and Social Security number
for completion of a criminal history background check.
(2) An applicant shall provide the board with two
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(2) An applicant shall provide the board with two
complete functional sets of fingerprints, either cards or
electronic, properly executed by a criminal justice agency or
an individual properly trained in fingerprinting techniques.
The fingerprints and form shall be submitted by the board to
the State Bureau of InvestigationsInvestigation of the Alabama
Law Enforcement Agency for the purposes of furnishing criminal
background checks. The State Bureau of
InvestigationsInvestigation shall forward a copy of the
applicant's prints to the Federal Bureau of Investigation for
a national criminal background check. The applicant shall pay
all costs associated with the background checks required by
this section.
(3) For purposes of this section, the term "applicant"
shall includeincludes every person who has any proprietary or
profit interest of 10 percent or more in the licensed
establishment, but shall not include any public corporation
whose shares are traded on a recognized stock exchange.
(4) The board shall keep information received pursuant
to this section confidential, except that information received
and relied upon in denying the issuance of a license in this
state may be disclosed as may be necessary to support the
denial or when subpoenaed from a court.
(d) Every license issued under this titlechapter shall
be constantly and conspicuously displayed on the licensed
premises.
(e) Each retail liquor license application must be
approved by the governing authority of the municipality if the
retailer is located in a municipality, or by the county
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retailer is located in a municipality, or by the county
commission if the retailer is located in the county and
outside the limits of the municipality, before the board shall
have authority to grant the license.
(f) Any retailer may be granted licenses to maintain,
operate, or conduct any number of places for the sale of
alcoholic beverages, but a separate license must be secured
for each place where alcoholic beverages are sold. No retail
license issued under this titlechapter shall be used for more
than one premises, nor for separate types of operation on the
same premises. Provided, however, any such licensed retail
operation existing on May 14, 2009, and operating based on
dual licenses, both a club or lounge license and a restaurant
license, on the same premises shall be exempt from the
requirement of the preceding sentence and may continue to
operate under the dual licenses. Any rule adopted by the board
relating to the requirements concerning dual licenses, both a
club or lounge license and a restaurant license, shall not
apply to any retail operation existing on May 14, 2009. The
rules shall include, but not be limited to, the maintenance of
separate books, separate entrances, and separate inventories.
Each premises must have a separate retail license. Where more
than one retail operation is located within the same building,
each operation under a separate or different ownership is
required to obtain a separate retail license; and where more
than one type of retail operation located within the same
building is operated by the same licensee, the licensee must
have a license for each type of retail operation. Provided,
there shall be no licenses issued by the board for the sale of
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there shall be no licenses issued by the board for the sale of
liquor, beer, or wine by rolling stores.
(g) No retailer shall sell any alcoholic beverages for
consumption on the licensed premises except in a room or rooms
or place on the licensed premises at all times accessible to
the use and accommodation of the general public; but this
section shall not be interpreted to prevent a hotel or club
licensee from selling alcoholic beverages in any room of the
hotel or club house occupied by a bona fide registered guest
or member or private party entitled to purchase the same.
(h) All beer, except draft or keg beer, sold by
retailers must be sold or dispensed in bottles, cans, or other
containers not to exceed 25.4 ounces. All wine sold by
retailers for off-premises consumption must be sold or
dispensed in bottles or other containers in accordance with
the standards of fill specified in the then effective
standards of fill for wine prescribed by the U.S. Treasury
Department.
(i) Draft or keg beer may be sold or dispensed within
this state within those counties in which and in the manner in
which the sale of draft or keg beer was authorized by law on
September 30, 1980, or in which the sale of draft or keg beer
is hereafter authorized by law. In rural communities with a
predominantly foreign population, after the payment of the tax
imposed by this title, draft or keg beer may be sold or
dispensed by special permit from the board, when, in the
judgment of the board, the use and consumption of draft or keg
beer is in accordance with the habit and customs of the people
of any such rural community. The board may grant to any civic
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of any such rural community. The board may grant to any civic
center authority or its franchisee or concessionaire, to which
the board may have issued or may simultaneously issue a retail
license under the provisions of this title, a revocable
temporary permit to sell or dispense in any part of its civic
center, for consumption therein, draft or keg beer. Either
permit shall be promptly revoked by the board if, in its
judgment, the same tends to create intemperance or is
prejudicial to the welfare, health, peace, temperance, and
safety of the people of the community or of the state.
(j) No importer shall sell alcoholic beverages to any
person other than a wholesaler licensee, or sell to a
wholesaler licensee any brand or brands of alcoholic beverages
for sale or distribution in this state, except where the
importer has been granted written authorization from the
manufacturer thereof to import and sell the brand or brands to
be sold in this state, which authorization is on file with the
board.
(k) No wholesaler shall maintain or operate any place
where sales are made other than that for which the wholesale
license is granted; provided, however, a wholesaler may be
licensed to sell and distribute liquor, wine, and beer, and
mixed spirit beverages . No wholesaler shall maintain any place
for the storage of liquor, wine, or beer, or mixed spirit
beverages unless the same has been approved by the board. No
wholesaler license shall be issued for any premises in any
part of which there is operated any retail license for the
sale of alcoholic beverages.
(l) Licenses issued under this titlechapter may not be
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(l) Licenses issued under this titlechapter may not be
assigned. The board may transfer any license from one person
to another, or from one place to another within the same
governing jurisdiction, or both, as the board may determine;
but no transfers shall be made to a person who would not have
been eligible to receive the license originally, nor for the
transaction of business at a place for which the license could
not originally have been issued lawfully.
(m) Every applicant for a transfer of a license shall
file a written application with the board within such time as
the board shall fix in its rules. Whenever any license is
transferred, there shall be collected a filing fee of fifty
dollars ($50), to be paid to the board, and the board shall
pay the fee into the State Treasury to the credit of the Beer
Tax and License Fund of the board.
(n) In the event that any person to whom a license has
been issued under the terms of this titlechapter becomes
insolvent, makes an assignment for the benefit of creditors,
or is adjudicated as bankrupt by either voluntary or
involuntary action, the license of the person shall
immediately terminate and be cancelledcanceled without any
action on the part of the board, and there shall be no refund
made, or credit given, for the unused portion of the license
fee for the remainder of the license year for which the
license was granted. Thereafter, no license shall be issued by
the board for the premises, wherein the license was conducted,
to any assignee, committee, trustee, receiver, or successor of
the licensee until a hearing has been held by the board as in
the case of a new application for license. In all such cases,
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the case of a new application for license. In all such cases,
the board shall have the sole and final discretion as to the
propriety of the issuance of a license for the premises, the
time it shall issue, and the period for which it shall be
issued, and shall have the further power to impose conditions
under which the licensed premises shall be conducted."
Section 6. Chapter 8B, commencing with Section 28-8B-1,
is added to Title 28 of the Code of Alabama 1975, to read as
follows:
§28-8B-1
(a) The Legislature hereby finds and declares that this
chapter is enacted pursuant to the authority granted to the
state under the Twenty-First Amendment to the United States
Constitution, the powers reserved to the state under the Tenth
Amendment to the United States Constitution, and the inherent
powers of the state under the Constitution of Alabama of 2022,
in order to regulate the traffic of alcoholic beverages and to
substitute the regulations and oversight established in this
act for the application of federal and state antitrust laws
that otherwise would apply to any potential anti-competitive
effects of this title. For the avoidance of doubt, the intent
of the Legislature is to maintain the uniform three-tier
system of control over the sale, purchase, taxation,
transportation, manufacture, consumption, and possession of
alcoholic beverages in the state to promote the health,
safety, and welfare of residents of this state by, among other
purposes, ensuring the state shall be able to register, audit,
inspect, seize, recall, and test alcoholic beverages shipped
into, distributed, and sold throughout this state; and this
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into, distributed, and sold throughout this state; and this
expression of the policy and intent of the Legislature is
intended to satisfy the clear articulation test for state
action immunity as has been established by the United States
Supreme Court in California Retail Liquor Dealers Assn. v.
Midcal Aluminum, Inc., et al.
(b) If any provision of this chapter, or its
application to any person or circumstance, is determined by a
court to be invalid or unconstitutional, that provision shall
be stricken and the remaining provisions shall be construed in
accordance with the intent of the Legislature to further limit
rather than expand commerce in alcoholic beverages, including
by prohibiting any commerce in alcoholic beverages not
expressly authorized, and to enhance strict regulatory control
over taxation, distribution, and sale of alcoholic beverages
through the existing uniform system of regulation of alcoholic
beverages.
§28-8B-2
(a) This chapter applies only to mixed spirit beverages
and does not apply to regulation of beer or wine franchises.
(b) Nothing in this chapter shall be deemed to repeal
or amend any existing beer or wine franchise laws. This
chapter is intended to address mixed spirit beverages, and to
leave in effect and unchanged any local or state franchise
laws existing on the effective date of this act.
§28-8B-3
(a) Each supplier of mixed spirit beverages licensed by
the board to sell its mixed spirit beverages within the State
of Alabama shall sell its mixed spirit beverages only through
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of Alabama shall sell its mixed spirit beverages only through
wholesaler licensees of the board and shall grant in writing
to each of its wholesalers a distribution agreement which
contains the wholesaler's exclusive sales territory for the
distribution of the supplier's designated brand in accordance
with Chapter 8.
(b) A licensed retailer may not purchase mixed spirit
beverages from any entity other than the licensed wholesaler
designated by the manufacturer of the mixed spirit beverages.
§28-8B-4
(a) For the purposes of this chapter, the following
terms have the following meanings:
(1) DISTRIBUTION AGREEMENT. Any written and signed
agreement between a wholesaler and a supplier, whereby a
wholesaler is granted the right to purchase and sell a brand
of mixed spirit beverages sold by a supplier.
(2) FAIR MARKET VALUE. An amount equal to a multiple of
the wholesaler's gross profit on the wholesaler's sales of the
supplier's products in the 12-month period immediately
preceding the date of the notice of termination or non-renewal
by supplier.
(3) GOOD CAUSE. A material breach by the wholesaler of
an essential element in a distribution agreement with a
supplier which is uncured or which reoccurs three or more
times.
(4) GROSS PROFIT. The wholesaler's selling price, net
of promotions, discounts, allowances, and freight, of the
products sold during such 12-month period, less the
wholesaler's cost to purchase the products from the supplier,
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wholesaler's cost to purchase the products from the supplier,
net of any discounts, promotions, and allowances from
supplier.
(b) Upon a supplier's termination or non-renewal of a
distribution agreement with a wholesaler, except where
termination or non-renewal is for good cause, the supplier
shall pay the wholesaler reasonable compensation in an amount
equal to the fair market value of the wholesaler's business
attributable to the supplier's portfolio, including the value
of the distribution rights, current saleable inventory,
goodwill, and other relevant assets.
(c) The supplier and wholesaler shall have 30 days
following receipt of the supplier's notice of termination or
non-renewal to agree upon a multiple of gross profit in
determining fair market value. Following the notice of
termination or non-renewal, but prior to determination of the
fair market value of the supplier's portfolio, the supplier
and wholesaler shall each continue to operate in good faith in
the regular course of the business relationship.
(d)(1) In determining fair market value, in the event
that supplier and wholesaler cannot agree upon the multiple of
gross profit after 30 days, the parties shall then have 10
business days to each, at their own cost, appoint an
independent third-party appraiser with demonstrable experience
in valuating alcohol beverage distribution rights. Each
party's independent appraiser, within 30 days, shall submit in
writing the fair market value appraisal of the supplier's
portfolio, including disclosing the multiple of gross profit
used to arrive at the valuation.
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used to arrive at the valuation.
(2) If the independent appraisers' valuations of the
supplier's portfolio are within 10 percent of each other, the
fair market value shall be the average of the two valuations.
(3) If the independent appraisers' valuations are not
within 10 percent of each other, a third independent appraiser
with experience in valuating alcohol beverage distribution
rights shall be retained by mutual agreement of the parties
within 10 business days to assess the fair market value, and
the fair market value shall be submitted in writing by the
third independent appraiser within 30 days. The cost of the
third independent appraiser shall be shared equally by the
parties. The fair market value shall then be the average of:
(i) the third independent appraiser's valuation and (ii) the
average of the first two valuations.
(e) The supplier shall have no more than seven business
days after the determination of fair market value within which
to remit payment of reasonable compensation to the wholesaler.
Section 7. If any provision of this act, or its
application to any person or circumstance, is determined by a
court to be invalid or unconstitutional, that provision shall
be stricken and the remaining provisions shall be construed in
accordance with the intent of the Legislature to further limit
rather than expand commerce in alcoholic beverages, including
by prohibiting any commerce in alcoholic beverages not
expressly authorized, and to enhance strict regulatory control
over taxation, distribution, and sale of alcoholic beverages
through the existing uniform system of regulation of alcoholic
beverages.
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beverages.
Section 8. This act shall become effective on October
1, 2025.
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