SB202INTRODUCED
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SB202
B6I9QJJ-1
By Senators Singleton, Stewart, Hatcher
RFD: Tourism
First Read: 27-Feb-25
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5 B6I9QJJ-1 02/25/2025 JC (L)lg 2025-531
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First Read: 27-Feb-25
SYNOPSIS:
Existing law makes no specific provision
regarding the retail sale of low-alcohol by volume
content beverages made from liquor.
This bill would define a new category of ready
to drink mixed liquor beverages containing no more than
7 percent alcohol by volume called "spirit infused
beverages."
This bill would establish a license category to
sell these beverages for on-premise and off-premise
consumption and would provide for a licensure fee.
This bill would also regulate how these
beverages shall be displayed by retailers.
A BILL
TO BE ENTITLED
AN ACT
Relating to alcoholic beverages; to amend Section
28-3-1, Code of Alabama 1975, to define a new category of
low-alcohol content liquor beverages called "spirit infused
beverages"; to add Section 28-3A-17.3 to the Code of Alabama
1975, to provide for a license for retailers to sell spirit
infused beverages; to amend Section 28-3A-21, Code of Alabama
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infused beverages; to amend Section 28-3A-21, Code of Alabama
1975, to set a fee for the license; to regulate the display of
spirit infused beverages by retailers; and to make
nonsubstantive, technical revisions to update the existing
code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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 spirit infused 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,
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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.
(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
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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
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
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(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.
(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
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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.
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 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 spirit infused 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,
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(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
more of alcohol by volume, except beer and table wine.
(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 spirit infused
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 be repealed or
otherwise shall be no longer in effect, thereafter the
provisions of Section 26-1-1 , shall govern.
(28) MUNICIPALITY. Any incorporated city or town of
this state to include its police jurisdiction.
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this state to include its police jurisdiction.
(29) PERSON. Every natural person, association, or
corporation. Whenever used in a clause prescribing or imposing
a fine or imprisonment, or both, such term as applied to
association shall mean the partners or members thereof and as
applied to corporation shall mean the officers thereof, except
as to incorporated clubs , the term person shall mean such means
the individual or individuals who, under the bylaws of such
clubs, shall have jurisdiction over the possession and sale of
liquor therein.
(30) 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) 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) RETAILER. Any person licensed by the board to
engage in the retail sale of any alcoholic beverages to the
consumer.
(33) SALE or SELL. Any transfer of liquor, wine , or
beer, or spirit infused beverages for a consideration, and any
gift in connection with, or as a part of, a transfer of
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gift in connection with, or as a part of, a transfer of
property other than liquor, wine, or beer, or spirit infused
beverages for a consideration.
(34) SELLING PRICE. The total marked-up price of
spirituous or vinous liquors sold by the board, exclusive of
taxes levied thereon.
(35) SPIRIT INFUSED BEVERAGES. A single-serve beverage
containing liquor, packaged in a can or container approved by
the board no larger than 16 ounces or 480 milliliters, and
which contains no more than seven percent alcohol by volume.
(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
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(38)(39) WET MUNICIPALITY. Any municipality in a dry
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 either of 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 either 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 28-3A-17.3 is added to the Code of
Alabama to read as follows:
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Alabama to read as follows:
§28-3A-17.3
(a) Upon payment of the limited spirit expanded retail
license fee as established in Section 28-3A-21, the board
shall issue a limited spirit expanded retail license to any
person who possesses any of the following:
(1) A valid retail table wine license for on-premises
and off-premises consumption as provided in Section 28-3A-14.
(2) A valid retail table wine license for off-premises
consumption as provided in Section 28-3A-15.
(3) A valid retail beer license for on-premises and
off-premises consumption as provided in Section 28-3A-16.
(4) A valid retail beer license for off-premises
consumption as provided in Section 28-3A-17.
(b)(1) A license issued under this section shall
authorize the licensee to purchase spirit infused beverages
from the board and sell the spirit infused beverages at
retail, commensurate with the privileges granted to the
licensee to sell at retail beer or table wine either for
on-premises or off-premises consumption, or only for
off-premises consumption.
(2)a. For purposes of this subdivision, a "supply
location" is a licensee under this section that also stores
beer, wine, and spirit infused beverages for supply to another
licensee under this section with which the supply location is
affiliated through common ownership.
b. A supply location may purchase spirit infused
beverages in quantities of 50 cases or more from the board at
one time for storage and transport the spirit infused
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one time for storage and transport the spirit infused
beverages for supply to an affiliated licensee.
(c) The board shall retain all collected limited spirit
expanded retail license fees. The board may use collected fees
for regulatory and administrative purposes as determined by
the board.
(d) Upon payment of a limited spirit expanded retail
license fee, there shall be no additional licensing or
administrative requirements, including no requirement for
additional background checks, which may be imposed on
licensees by a municipality, a county, or the state for the
sale of spirit infused beverages.
(e) The board may adopt rules to implement this
section.
Section 3. Section 28-3A-21, Code of Alabama 1975, is
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
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
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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) Warehouse license, license fee of two hundred
dollars ($200).
(6) Lounge retail liquor license, license fee of three
hundred dollars ($300).
(7) Restaurant retail liquor license, license fee of
three hundred dollars ($300).
(8) Club liquor license, Class I license fee of three
hundred dollars ($300), Class II license fee of seven hundred
fifty dollars ($750).
(9) Retail table wine license for off-premises
consumption, license fee of one hundred fifty dollars ($150).
(10) Retail table wine license for on-premises and
off-premises consumption, license fee of one hundred fifty
dollars ($150).
(11) Retail beer license for on-premises and
off-premises consumption, license fee of one hundred fifty
dollars ($150).
(12) Retail beer license for off-premises consumption,
license fee of one hundred fifty dollars ($150).
(13) 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) Special retail license, license fee of one hundred
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(14) 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) Special events retail license, license fee of one
hundred fifty dollars ($150).
(16) Limited spirit expanded retail license for
on-premises and off-premises consumption, license fee of one
hundred fifty dollars ($150).
(17) Limited spirit expanded retail license for
off-premises consumption, license fee of one hundred fifty
dollars ($150).
(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
taxes or fees, any county or municipality in which the sale of
alcoholic beverages is permitted shall be authorized to 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."
Section 4. A holder of a limited spirit expanded retail
license shall only advertise and display spirit infused
beverages adjacent to beer or wine. The licensee is not
required to maintain a separate entrance or door for customer
access to spirit infused beverages.
Section 5. This act shall become effective on October
1, 2025.
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