Alabama 2025 Regular Session

Alabama Senate Bill SB268 Compare Versions

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

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1	1	SB268INTRODUCED
2	2	Page 0
3	3	SB268
4	4	QN7TK11-1
5	5	By Senator Singleton
6	6	RFD: Tourism
7	7	First Read: 20-Mar-25
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12	12	5 QN7TK11-1 03/19/2025 JC (L) 2025-1075
13	13	Page 1
14	14	First Read: 20-Mar-25
15	15	SYNOPSIS:
16	16	Existing law makes no specific provisions
17	17	regarding the retail sale, wholesale, or tax on the
18	18	sale of low-alcohol by volume content beverages made
19	19	from liquor. These beverages are regulated like liquor.
20	20	They are not available for distribution through beer
21	21	and table wine wholesalers and are only sold in ABC
22	22	stores.
23	23	This bill would define a new category of ready
24	24	to drink mixed liquor beverages containing no more than
25	25	seven percent alcohol by volume, called "mixed spirit
26	26	beverages."
27	27	This bill would institute a licensing structure
28	28	in Alabama for mixed spirit beverages, which would
29	29	require all mixed spirit beverages, other than those
30	30	sold in Alabama Beverage Control Board stores, to be
31	31	distributed through licensed wholesalers to licensed
32	32	retailers for on-premise and off-premise consumption.
33	33	This bill would provide for the levy of a
34	34	privilege or excise tax on mixed spirit beverages.
35	35	This bill would require suppliers of mixed
36	36	spirit beverages to designate exclusive sales
37	37	territories for each brand and enter into a
38	38	distribution agreement with a licensed wholesaler for
39	39	each sales territory.
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69	69	each sales territory.
70	70	This bill would also set requirements for
71	71	distribution agreements between suppliers and wholesale
72	72	distributors of mixed spirit beverages for no-cause
73	73	termination or nonrenewal of a distribution agreement.
74	74	A BILL
75	75	TO BE ENTITLED
76	76	AN ACT
77	77	Relating to alcoholic beverages; to amend Sections
78	78	28-3-1, 28-3A-3, 28-3A-21, and 28-3A-23, Code of Alabama 1975;
79	79	to define a new category of low-alcohol content liquor
80	80	beverages called mixed spirit beverages; to add Section
81	81	28-3-208 to the Code of Alabama 1975, to levy an excise tax
82	82	upon the distribution of mixed spirit beverages; to add
83	83	Section 28-3A-9.1 to the Code of Alabama 1975, to provide a
84	84	license for wholesalers of mixed spirit beverages; to add
85	85	Section 28-3A-17.3, to provide licenses for retailers of mixed
86	86	spirit beverages; to set fees for the licenses; and to add
87	87	Chapter 8B to Title 28 of the Code of Alabama 1975; to require
88	88	licensed importers, manufacturers, and suppliers of mixed
89	89	spirit beverages to enter into exclusive sales territory
90	90	distribution agreements with wholesalers.
91	91	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
92	92	Section 1. Section 28-3-1, Code of Alabama 1975, is
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122	122	Section 1. Section 28-3-1, Code of Alabama 1975, is
123	123	amended to read as follows:
124	124	"§28-3-1
125	125	As used in this title, the following words shall have
126	126	the following meanings unless the context clearly indicates
127	127	otherwise:
128	128	(1) ALCOHOLIC BEVERAGES. Any alcoholic, spirituous,
129	129	vinous, fermented, or other alcoholic beverage, or combination
130	130	of liquors and mixed liquor, a part of which is spirituous,
131	131	vinous, fermented, or otherwise alcoholic, and all drinks or
132	132	drinkable liquids, preparations , or mixtures intended for
133	133	beverage purposes, which contain one-half of one percent or
134	134	more of alcohol by volume , and shall include . The term
135	135	includes liquor, beer, and wine, and mixed spirit beverages .
136	136	(2) ASSOCIATION. A partnership, limited partnership, or
137	137	any form of unincorporated enterprise owned by two or more
138	138	persons.
139	139	(3) BEER, or MALT OR BREWED BEVERAGES. Any beer, lager
140	140	beer, ale, porter, malt or brewed beverage, or similar
141	141	fermented beverage containing one-half of one percent or more
142	142	of alcohol by volume and not in excess of thirteen and
143	143	nine-tenths13.9 percent alcohol by volume, brewed or produced
144	144	from malt, wholly or in part, or from rice, grain of any kind,
145	145	bran, glucose, sugar, or molasses. A beer or malt or brewed
146	146	beverage may incorporate honey, fruit, fruit juice, fruit
147	147	concentrate, herbs, spices, or other flavorings during the
148	148	fermentation process. The term does not include any product
149	149	defined as liquor, table wine, or wine, or mixed spirit
150	150	beverages.
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180	180	beverages.
181	181	(4) BOARD. The Alcoholic Beverage Control Board.
182	182	(5) BRANDY. All beverages that are an alcoholic
183	183	distillate from the fermented juice, mash, or wine of fruit,
184	184	or from the residue thereof, produced in such manner that the
185	185	distillate possesses the taste, aroma, and characteristics
186	186	generally attributed to the beverage, as bottled at not less
187	187	than 80 degree proof.
188	188	(6) CARTON. The package or container or containers in
189	189	which alcoholic beverages are originally packaged for shipment
190	190	to market by the manufacturer or its designated
191	191	representatives or the importer.
192	192	(7) CIDER. A fermented alcoholic beverage made from
193	193	apple juice and containing not more than 8.5 percent alcohol
194	194	by volume.
195	195	(8) CLUB.
196	196	a. Class I. A corporation or association organized or
197	197	formed in good faith by authority of law and which must have
198	198	at least 150 paid-up members. It must be the owner, lessee, or
199	199	occupant of an establishment operated solely for the objects
200	200	of a national, social, patriotic, political, or athletic
201	201	nature or the like, but not for pecuniary gain, and the
202	202	property as well as the advantages of which, belong to all the
203	203	members and which maintains an establishment provided with
204	204	special space and accommodations where, in consideration of
205	205	payment, food with or without lodging is habitually served.
206	206	The club shall hold regular meetings, continue its business
207	207	through officers regularly elected, admit members by written
208	208	application, investigation, and ballot, and charge and collect
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238	238	application, investigation, and ballot, and charge and collect
239	239	dues from elected members.
240	240	b. Class II. A corporation or association organized or
241	241	formed in good faith by authority of law and which must have
242	242	at least 100 paid-up members. It must be the owner, lessee, or
243	243	occupant of an establishment operated solely for the objects
244	244	of a national, social, patriotic, political, or athletic
245	245	nature or the like. The club shall hold regular meetings,
246	246	continue its business through officers regularly elected,
247	247	admit members by written application, investigation, and
248	248	ballot, and charge and collect dues from elected members.
249	249	(9) CONTAINER. The single bottle, can, keg, bag, or
250	250	other receptacle, but not a carton, in which alcoholic
251	251	beverages are originally packaged for the market by the
252	252	manufacturer or importer and from which the alcoholic beverage
253	253	is consumed by or dispensed to the public.
254	254	(10) CORPORATION. A corporation or joint stock
255	255	association organized under the laws of this state, the United
256	256	States, or any other state, territory , or foreign country, or
257	257	dependency.
258	258	(11) DELIVERY. The transportation of alcoholic
259	259	beverages directly from a retail licensee of the board to an
260	260	individual, pursuant to Section 28-1-4 and Section 28-3A-13.1.
261	261	(12) DELIVERY SERVICE LICENSE. A license issued by the
262	262	Alabama Alcoholic Beverage Control Board in accordance with
263	263	Section 28-3A-13.1 that authorizes the licensee, the
264	264	licensee's employees, or independent contractors under a
265	265	contractual or business arrangement with the licensee to
266	266	transport and deliver alcoholic beverages.
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296	296	transport and deliver alcoholic beverages.
297	297	(13) DRY COUNTY. Any county which by a majority of
298	298	those voting voted in the negative in an election heretofore
299	299	held under the applicable statutes at the time of the election
300	300	or may hereafter vote in the negative in an election or
301	301	special method referendum hereafter held in accordance with
302	302	Chapter 2, or held in accordance with the provisions of any
303	303	act hereafter enacted permitting such election.
304	304	(14) DRY MUNICIPALITY. Any municipality within a wet
305	305	county which has, by its governing body or by a majority of
306	306	those voting in a municipal election heretofore held in
307	307	accordance with the provisions of Section 28-2-22, or in a
308	308	municipal option election heretofore or hereafter held in
309	309	accordance with the provisions of Act 84-408, Acts of Alabama
310	310	1984, appearing as Chapter 2A, or any act hereafter enacted
311	311	permitting municipal option election, voted to exclude the
312	312	sale of alcoholic beverages within the corporate limits of the
313	313	municipality.
314	314	(15) EMPLOYEE. An individual to whom an employer is
315	315	required to issue a W-2 tax form under federal law.
316	316	(16) GENERAL WELFARE PURPOSES. All of the following:
317	317	a. The administration of public assistance as set out
318	318	in Sections 38-2-5 and 38-4-1.
319	319	b. Services, including supplementation and
320	320	supplementary services under the federal Social Security Act,
321	321	to or on behalf of persons to whom public assistance may be
322	322	given under Sections 38-2-5 and 38-4-1.
323	323	c. Service to and on behalf of dependent, neglected, or
324	324	delinquent children.
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354	354	delinquent children.
355	355	d. Investigative and referral services to and on behalf
356	356	of needy persons.
357	357	(17) HEARING COMMISSION. A body appointed by the board
358	358	to hear and decide all contested license applications and all
359	359	disciplinary charges against any licensee for violation of
360	360	this title or the rules of the board.
361	361	(18) HOTEL. A building or buildings held out to the
362	362	public for housing accommodations of travelers or transients,
363	363	and shall include a motel, but shall not include a rooming
364	364	house or boarding house.
365	365	(19) IMPORTER. Any person, association, or corporation
366	366	engaged in importing alcoholic beverages, liquor, wine, or
367	367	beer, or mixed spirit beverages manufactured outside of the
368	368	United States of America into this state or for sale or
369	369	distribution in this state, or to the board or to a licensee
370	370	of the board.
371	371	(20) INDEPENDENT CONTRACTOR. An individual to whom an
372	372	employer is required to issue a 1099 tax form under federal
373	373	law.
374	374	(21) KEG. A pressurized factory sealed container with a
375	375	capacity equal to or greater than five U.S. gallons, from
376	376	which beer is withdrawn by means of an external tap.
377	377	(22) LIQUOR. Any alcoholic, spirituous, vinous,
378	378	fermented, or other alcoholic beverage, or combination of
379	379	liquors and mixed liquor, a part of which is spirituous,
380	380	fermented, vinous, or otherwise alcoholic, and all drinks or
381	381	drinkable liquids, preparations, or mixtures intended for
382	382	beverage purposes, which contain one-half of one percent or
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412	412	beverage purposes, which contain one-half of one percent or
413	413	more of alcohol by volume, except beer ,and table wine, and
414	414	mixed spirit beverages .
415	415	(23) LIQUOR STORE. A liquor store operated by the
416	416	board, where alcoholic beverages other than beer are
417	417	authorized to be sold in unopened containers.
418	418	(24) MANUFACTURER. Any person, association, or
419	419	corporation engaged in the producing, bottling, manufacturing,
420	420	distilling, fermenting, brewing, rectifying, or compounding of
421	421	alcoholic beverages, liquor, beer, or wine, or mixed spirit
422	422	beverages in this state or for sale or distribution in this
423	423	state or to the board or to a licensee of the board.
424	424	(25) MEAD. An alcoholic beverage produced by fermenting
425	425	a solution of honey and water with grain mash and containing
426	426	not more than 18 percent alcohol by volume.
427	427	(26) MEAL. A diversified selection of food some of
428	428	which is not susceptible of being consumed in the absence of
429	429	at least some articles of tableware and which cannot be
430	430	conveniently consumed while one is standing or walking about.
431	431	(27) MINOR. Any person under 21 years of age; provided,
432	432	however, in the event Section 28-1-5 ,shall beis repealed or
433	433	otherwise shall be no longer in effect, thereafter the
434	434	provisions of Section 26-1-1, shall govern.
435	435	(28) MIXED SPIRIT BEVERAGES. A single-serve beverage
436	436	containing liquor, packaged in a can or other container
437	437	approved by the board no larger than 16 ounces, and which
438	438	contains no more than seven percent alcohol by volume. The
439	439	term does not include any beverage containing liquor over 16
440	440	ounces in size or of more than seven percent alcohol by
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470	470	ounces in size or of more than seven percent alcohol by
471	471	volume.
472	472	(29) MUNICIPALITY. Any incorporated city or town of
473	473	this state to include its police jurisdiction.
474	474	(29)30 PERSON. Every natural person, association, or
475	475	corporation. Whenever used in a clause prescribing or imposing
476	476	a fine or imprisonment, or both, such the term as applied to
477	477	an association shall mean the partners or members thereof and
478	478	as applied to a corporation shall mean the officers thereof,
479	479	except as to incorporated clubs the term person shall mean
480	480	such means an individual or individuals who, under the bylaws
481	481	of such clubs, shall have jurisdiction over the possession and
482	482	sale of liquor therein.
483	483	(30)(31) POPULATION. The population according to the
484	484	last preceding or any subsequent decennial census of the
485	485	United States, except where a municipality is incorporated
486	486	subsequent to the last census, in which event, its population
487	487	until the next decennial census shall be the population of the
488	488	municipality as determined by the judge of probate of the
489	489	county as the official population on the date of its
490	490	incorporation.
491	491	(31)(32) RESTAURANT. A reputable place licensed as a
492	492	restaurant, operated by a responsible person of good
493	493	reputation, and habitually and principally used for the
494	494	purpose of preparing and serving meals for the public to
495	495	consume on the premises.
496	496	(32)(33) RETAILER. Any person licensed by the board to
497	497	engage in the retail sale of any alcoholic beverages to the
498	498	consumer.
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528	528	consumer.
529	529	(33)(34) SALE or SELL. Any transfer of liquor, wine ,or
530	530	beer, or mixed spirit beverages for a consideration, and any
531	531	gift in connection with, or as a part of, a transfer of
532	532	property other than liquor, wine, or beer,or mixed spirit
533	533	beverages for a consideration.
534	534	(34)(35) SELLING PRICE. The total marked-up price of
535	535	spirituous or vinous liquors sold by the board, exclusive of
536	536	taxes levied thereon.
537	537	(35)(36) TABLE WINE. Except as otherwise provided in
538	538	this subdivision, any wine containing not more than 24 percent
539	539	alcohol by volume. Table wine does not include any wine
540	540	containing more than sixteen and one-half 16.5 percent alcohol
541	541	by volume that is made with herbs or flavors, except vermouth,
542	542	or is an imitation or other than standard wine. Table wine is
543	543	not liquor, spirituous, or vinous.
544	544	(36)(37) UNOPENED CONTAINER. A container containing
545	545	alcoholic beverages, which has not been opened or unsealed
546	546	subsequent to filling and sealing by the manufacturer or
547	547	importer.
548	548	(37)(38) WET COUNTY. Any county which by a majority of
549	549	those voting voted in the affirmative in an election
550	550	heretofore held in accordance with the statutes applicable at
551	551	the time of the election or may hereafter vote in the
552	552	affirmative in an election or special method referendum held
553	553	in accordance with Chapter 2, or other statutes applicable at
554	554	the time of the election.
555	555	(38)(39) WET MUNICIPALITY. Any municipality in a dry
556	556	county which by a majority of those voting voted in the
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586	586	county which by a majority of those voting voted in the
587	587	affirmative in a municipal option election heretofore or
588	588	hereafter held in accordance with the provisions of Act
589	589	84-408, Acts of Alabama 1984, appearing as Chapter 2A of this
590	590	title, as amended, or any act hereafter enacted permitting
591	591	municipal option election, or any municipality which became
592	592	wet by vote of the governing body or by the voters of the
593	593	municipality heretofore or hereafter held under the special
594	594	method referendum provisions of Section 28-2-22, or as
595	595	hereafter provided, where the county has become dry subsequent
596	596	to the elected wet status of the municipality.
597	597	(39)(40) WHOLESALER. Any person licensed by the board
598	598	to engage in the sale and distribution of table wine ,and
599	599	beer, or mixed spirit beverages, or either anycombination
600	600	thereofof them, within this state, at wholesale only, to be
601	601	sold by export or to retail licensees or other wholesale
602	602	licensees or others within this state lawfully authorized to
603	603	sell table wine, and beer, or mixed spirit beverages, or
604	604	either any combination thereof of them, for the purpose of
605	605	resale only.
606	606	(40)(41) WINE. All beverages made from the fermentation
607	607	of fruits, berries, or grapes, with or without added spirits,
608	608	and produced in accordance with the laws and regulations of
609	609	the United States, containing not more than 24 percent alcohol
610	610	by volume, and shall include all sparkling wines, carbonated
611	611	wines, special natural wines, rectified wines, vermouths,
612	612	vinous beverages, vinous liquors, and like products, including
613	613	restored or unrestored pure condensed juice."
614	614	Section 2. Section 28-3-208 is added to the Code of
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644	644	Section 2. Section 28-3-208 is added to the Code of
645	645	Alabama 1975, to read as follows:
646	646	§28-3-208
647	647	(a) There is levied, in addition to the license taxes
648	648	provided for by this chapter and municipal and county license
649	649	taxes, a privilege or excise tax measured by and graduated in
650	650	accordance with the volume of sales of mixed spirit beverages,
651	651	which shall be an amount equal to two and nine-tenths cents
652	652	($.029) per ounce or fractional part thereof.
653	653	(b)(1)a. The tax levied by subsection (a) shall be
654	654	added to the sales price of all mixed spirit beverages and
655	655	collected from the purchaser. The tax shall be collected in
656	656	the first instance from the wholesaler where mixed spirit
657	657	beverages are sold or handled by wholesale licensees.
658	658	b. It shall be unlawful for any person who is required
659	659	to pay the tax in the first instance to fail or refuse to add
660	660	to the sales price and collect from the purchaser the required
661	661	amount of tax, it being the intent and purpose of this section
662	662	that the tax levied is in fact a levy on the consumer. The
663	663	person who pays the tax in the first instance is acting as an
664	664	agent of the state for the collection and payment of the tax
665	665	and as such may not collect a tax on mixed spirit beverages
666	666	for any other level of government.
667	667	(2) The tax levied by subsection (a) shall be collected
668	668	by a monthly return as follows:
669	669	a. The wholesaler shall file a monthly return with the
670	670	board no later than the 15th day of the second month following
671	671	the month of receipt of mixed spirit beverages by the
672	672	wholesaler on a form prescribed by the board showing receipts
673	673	309
674	674	310
675	675	311
676	676	312
677	677	313
678	678	314
679	679	315
680	680	316
681	681	317
682	682	318
683	683	319
684	684	320
685	685	321
686	686	322
687	687	323
688	688	324
689	689	325
690	690	326
691	691	327
692	692	328
693	693	329
694	694	330
695	695	331
696	696	332
697	697	333
698	698	334
699	699	335
700	700	336 SB268 INTRODUCED
701	701	Page 13
702	702	wholesaler on a form prescribed by the board showing receipts
703	703	by the wholesaler from manufacturers, importers, or other
704	704	wholesaler licensees during the month of receipt and the tax
705	705	due thereon at the rate of two and nine-tenths cents ($.029)
706	706	per ounce of mixed spirit beverages sold to the wholesaler.
707	707	The tax due at this rate shall be remitted to the board along
708	708	with the return.
709	709	b. A wholesaler shall file a monthly return with the
710	710	county or municipality within which the mixed spirit beverage
711	711	is sold at retail not later than the 15th day of each month,
712	712	showing sales by wholesalers during the preceding month and
713	713	the tax due thereon at the rate of two thousandths cents
714	714	($.002) per ounce sold. The tax due at this rate shall be
715	715	remitted to the county or municipality along with the return.
716	716	(3) The board and the governing body of each county and
717	717	municipality served by the wholesaler shall have the authority
718	718	to examine the books and records of the wholesaler who sells,
719	719	stores, or receives for the purpose of distribution any mixed
720	720	spirit beverages, to determine the accuracy of any return
721	721	required to be filed with it.
722	722	(c) The proceeds of the tax levied by subsection (a)
723	723	and remitted pursuant to subsection (b) shall be paid and
724	724	distributed as follows:
725	725	(1) One-half of the mixed spirit beverages tax shall be
726	726	deposited in the State General Fund.
727	727	(2) The remaining one-half of the mixed spirit
728	728	beverages tax shall be retained by the board for regulatory,
729	729	enforcement, and administrative purposes.
730	730	(3) The mixed spirit beverage tax remitted by the
731	731	337
732	732	338
733	733	339
734	734	340
735	735	341
736	736	342
737	737	343
738	738	344
739	739	345
740	740	346
741	741	347
742	742	348
743	743	349
744	744	350
745	745	351
746	746	352
747	747	353
748	748	354
749	749	355
750	750	356
751	751	357
752	752	358
753	753	359
754	754	360
755	755	361
756	756	362
757	757	363
758	758	364 SB268 INTRODUCED
759	759	Page 14
760	760	(3) The mixed spirit beverage tax remitted by the
761	761	wholesaler to either the county or municipality under
762	762	paragraph (b)(2)b. shall be distributed as provided in Section
763	763	28-3-190.
764	764	(d) The tax levied under this section is exclusive and
765	765	shall be in lieu of all other and additional taxes and
766	766	licenses of the state, county, or municipality, imposed on or
767	767	measured by the sale or volume of sale of mixed spirit
768	768	beverages; provided, that nothing contained in this section
769	769	shall be construed to exempt the retail sale of mixed spirit
770	770	beverages from the levy of tax on general retail sales by the
771	771	state, county, or municipality in the nature of, or in lieu
772	772	of, a general sales tax.
773	773	(e) The tax levied by subsection (a) shall not be
774	774	imposed upon the sale, trade, or barter of mixed spirit
775	775	beverages by one licensed wholesaler to another wholesaler
776	776	licensed to sell and handle mixed spirit beverages in this
777	777	state, which transaction is made exempt from the tax;
778	778	provided, however, the board may require written reporting of
779	779	any such transaction in the form as the board may prescribe
780	780	pursuant to paragraph (b)(2)a.
781	781	(f) Each county and municipality may fix a reasonable
782	782	privilege or license fee on retail, importer, and wholesale
783	783	licensees, for the purpose of covering the cost of
784	784	administration with respect to the sale of mixed spirit
785	785	beverages, but not to generate revenue; provided, however, a
786	786	county or municipality may not levy a license or privilege tax
787	787	or other charge for the privilege of doing business as a mixed
788	788	spirit beverages wholesaler, importer, or retailer which shall
789	789	365
790	790	366
791	791	367
792	792	368
793	793	369
794	794	370
795	795	371
796	796	372
797	797	373
798	798	374
799	799	375
800	800	376
801	801	377
802	802	378
803	803	379
804	804	380
805	805	381
806	806	382
807	807	383
808	808	384
809	809	385
810	810	386
811	811	387
812	812	388
813	813	389
814	814	390
815	815	391
816	816	392 SB268 INTRODUCED
817	817	Page 15
818	818	spirit beverages wholesaler, importer, or retailer which shall
819	819	exceed one-half the amount of the state license fee.
820	820	Section 3. Section 28-3A-3 Code of Alabama 1975, is
821	821	amended to read as follows:
822	822	"§28-3A-3
823	823	(a)(1) Subject to this chapter and rules adopted
824	824	thereunder, the board may issue and renew licenses to
825	825	reputable and responsible persons for the following purposes:
826	826	(1)a. To manufacture, brew, distill, ferment, rectify,
827	827	bottle, or compound any or all alcoholic beverages within or
828	828	for sale within this state.
829	829	(2)b. To import any or all alcoholic beverages
830	830	manufactured outside the United States into this state or for
831	831	sale or distribution within this state.
832	832	(3)c. To distribute, wholesale, or act as jobber for
833	833	the sale of liquor.
834	834	(4)d. To distribute, wholesale, or act as jobber for
835	835	the sale of table wine and beer or either of them , beer, or
836	836	mixed spirit beverages alone or in any combination to licensed
837	837	retailers within the state and others within this state
838	838	lawfully authorized to sell table wine , or beer, or mixed
839	839	spirit beverages .
840	840	(5)e. To store or warehouse any or all alcoholic
841	841	beverages for transshipment inside and outside the state.
842	842	(6)f. To sell and dispense at retail , in a lounge,
843	843	liquor and other alcoholic beverages for on-premises
844	844	consumption.
845	845	(7)g. To sell and dispense at retail in an
846	846	establishment habitually and principally used for the purpose
847	847	393
848	848	394
849	849	395
850	850	396
851	851	397
852	852	398
853	853	399
854	854	400
855	855	401
856	856	402
857	857	403
858	858	404
859	859	405
860	860	406
861	861	407
862	862	408
863	863	409
864	864	410
865	865	411
866	866	412
867	867	413
868	868	414
869	869	415
870	870	416
871	871	417
872	872	418
873	873	419
874	874	420 SB268 INTRODUCED
875	875	Page 16
876	876	establishment habitually and principally used for the purpose
877	877	of providing meals for the public, liquor and other , in a
878	878	restaurant, alcoholic beverages for on-premises consumption.
879	879	(8)h. To sell liquor and wine at retail for
880	880	off-premises consumption.
881	881	(9)i. To sell and dispense at retail , in a club, liquor
882	882	and other alcoholic beverages for on-premises consumption.
883	883	(10)j. To sell table wine at retail for off-premises
884	884	consumption.
885	885	(11)k. To sell table wine at retail for on-premises and
886	886	off-premises consumption.
887	887	(12)l. To sell beer at retail for on-premises and
888	888	off-premises consumption.
889	889	(13)m. To sell beer at retail for off-premises
890	890	consumption.
891	891	n. To sell mixed spirit beverages at retail for
892	892	on-premises and off-premises consumption.
893	893	o. To sell mixed spirit beverages at retail for
894	894	off-premises consumption.
895	895	(14)p. To sell liquor and other alcoholic beverages at
896	896	retail by a retail common carrier with a passenger capacity of
897	897	at least 10 people.
898	898	(15)q. To sell any or all alcoholic beverages at retail
899	899	under a special license issued conditioned upon terms and
900	900	conditions and for the period of time prescribed by the board.
901	901	(16)r. To sell any or all alcoholic beverages at retail
902	902	under a special event retail license issued for three days
903	903	upon the terms and conditions prescribed by the board.
904	904	(2) Provided, however, that the Notwithstanding
905	905	421
906	906	422
907	907	423
908	908	424
909	909	425
910	910	426
911	911	427
912	912	428
913	913	429
914	914	430
915	915	431
916	916	432
917	917	433
918	918	434
919	919	435
920	920	436
921	921	437
922	922	438
923	923	439
924	924	440
925	925	441
926	926	442
927	927	443
928	928	444
929	929	445
930	930	446
931	931	447
932	932	448 SB268 INTRODUCED
933	933	Page 17
934	934	(2) Provided, however, that the Notwithstanding
935	935	subdivision (1), licenses authorized under subdivision (1) may
936	936	not be issued in dry counties where traffic in alcoholic
937	937	beverages is not authorized by law , therein except a wine
938	938	manufacturer license may be issued in a dry county pursuant to
939	939	Section 28-7-10.1. Provided theThe restriction of this
940	940	paragraphsubdivision shall not apply to the issuance of a
941	941	renewal of a license under subdivisions (1), (2), (3), (4),
942	942	and (5)paragraphs (1)a. through (1)e. where the county or
943	943	municipality was wet when the initial license was issued and
944	944	the county or municipality subsequently votes dry; however, no
945	945	importer or wholesaler licensee may sell or distribute
946	946	alcoholic beverages within a dry county, except in a wet
947	947	municipality therein, or within a dry municipality.
948	948	(b) The board is granted discretionary powers in acting
949	949	upon license applications under the provisions of this
950	950	chapter.
951	951	(c) Licenses issued under this chapter, unless revoked
952	952	or suspended in the manner provided in this chapter, shall be
953	953	valid for the license year which shall begin on the first day
954	954	of October of each year, unless otherwise established by this
955	955	chapter or by the board. Licenses may be issued at any time
956	956	during the year."
957	957	Section 4. Section 28-3A-9.1 and 28-3A-17.3 are added
958	958	to the Code of Alabama 1975, to read as follows:
959	959	§28-3A-9.1
960	960	(a) Upon payment of the applicable fee for a mixed
961	961	spirit beverages wholesaler license as established in Section
962	962	28-3A-21, and the applicant's compliance with this chapter and
963	963	449
964	964	450
965	965	451
966	966	452
967	967	453
968	968	454
969	969	455
970	970	456
971	971	457
972	972	458
973	973	459
974	974	460
975	975	461
976	976	462
977	977	463
978	978	464
979	979	465
980	980	466
981	981	467
982	982	468
983	983	469
984	984	470
985	985	471
986	986	472
987	987	473
988	988	474
989	989	475
990	990	476 SB268 INTRODUCED
991	991	Page 18
992	992	28-3A-21, and the applicant's compliance with this chapter and
993	993	rules adopted pursuant to this chapter, the board shall issue
994	994	to a wholesaler a mixed spirit beverage wholesaler license.
995	995	(b) A mixed spirit beverage wholesaler license shall
996	996	authorize the licensee to do all of the following:
997	997	(1) Import and receive shipments of mixed spirit
998	998	beverages from outside the state from licensed manufacturers.
999	999	(2) Purchase mixed spirit beverages from licensed
1000	1000	manufacturers or other licensed wholesalers within the state.
1001	1001	(3) Sell at wholesale or distribute mixed spirit
1002	1002	beverages to all licensees or other persons within this state
1003	1003	lawfully authorized to sell mixed spirit beverages within the
1004	1004	state.
1005	1005	(4) Export mixed spirit beverages from the state.
1006	1006	(c) Sales to all authorized persons shall be in
1007	1007	original packages or containers as approved by the board and
1008	1008	prepared for the market by the manufacturer.
1009	1009	(d)(1) Except as provided in this section, no person
1010	1010	shall sell at wholesale or distribute mixed spirit beverages
1011	1011	within this state unless the person is issued by the board a
1012	1012	wholesaler license to distribute mixed spirit beverages.
1013	1013	(2) Notwithstanding this section, Section 28-3A-17.3,
1014	1014	or Chapter 8B, the board shall retain the authority to act as
1015	1015	a wholesaler of mixed spirit beverages, provided the board, as
1016	1016	a wholesaler, shall only distribute mixed spirit beverages to
1017	1017	state liquor stores.
1018	1018	§28-3A-17.3
1019	1019	(a) Upon payment of the limited mixed spirit beverage
1020	1020	expanded retail license fee as established in Section
1021	1021	477
1022	1022	478
1023	1023	479
1024	1024	480
1025	1025	481
1026	1026	482
1027	1027	483
1028	1028	484
1029	1029	485
1030	1030	486
1031	1031	487
1032	1032	488
1033	1033	489
1034	1034	490
1035	1035	491
1036	1036	492
1037	1037	493
1038	1038	494
1039	1039	495
1040	1040	496
1041	1041	497
1042	1042	498
1043	1043	499
1044	1044	500
1045	1045	501
1046	1046	502
1047	1047	503
1048	1048	504 SB268 INTRODUCED
1049	1049	Page 19
1050	1050	expanded retail license fee as established in Section
1051	1051	28-3A-21, the board shall issue a limited mixed spirit
1052	1052	expanded retail license to any person who holds and possesses
1053	1053	any of the following:
1054	1054	(1) A valid retail table wine license for on-premises
1055	1055	and off-premises consumption as provided for in Section
1056	1056	28-3A-14.
1057	1057	(2) A valid retail table wine license for off-premises
1058	1058	consumption as provided for in Section 28-3A-15.
1059	1059	(3) A valid retail beer license for on-premises and
1060	1060	off-premises consumption as provided for in Section 28-3A-16.
1061	1061	(4) A valid retail beer license for off-premises
1062	1062	consumption as provided for in Section 28-3A-17.
1063	1063	(b) Upon written request to the board and without
1064	1064	payment of any additional fee in connection therewith, the
1065	1065	board shall issue a limited mixed spirit beverage expanded
1066	1066	retail license to any person who holds and possesses any of
1067	1067	the following:
1068	1068	(1) A valid lounge retail liquor license as provided
1069	1069	for in Section 28-3A-11.
1070	1070	(2) A valid club liquor retail license as provided for
1071	1071	in Section 28-3A-12.
1072	1072	(3) A valid restaurant retail liquor as provided for in
1073	1073	Section 28-3A-13.
1074	1074	(4) A special events retail license as provided for in
1075	1075	Section 28-3A-20.
1076	1076	(c) Each liquor store operated by the board for retail
1077	1077	sales only and not for sales to any person identified in
1078	1078	subsection (a) or (b) shall be authorized to purchase mixed
1079	1079	505
1080	1080	506
1081	1081	507
1082	1082	508
1083	1083	509
1084	1084	510
1085	1085	511
1086	1086	512
1087	1087	513
1088	1088	514
1089	1089	515
1090	1090	516
1091	1091	517
1092	1092	518
1093	1093	519
1094	1094	520
1095	1095	521
1096	1096	522
1097	1097	523
1098	1098	524
1099	1099	525
1100	1100	526
1101	1101	527
1102	1102	528
1103	1103	529
1104	1104	530
1105	1105	531
1106	1106	532 SB268 INTRODUCED
1107	1107	Page 20
1108	1108	subsection (a) or (b) shall be authorized to purchase mixed
1109	1109	spirit beverages from a licensed mixed spirit beverages
1110	1110	wholesaler and sell the mixed spirit beverages at retail
1111	1111	commensurate with the privileges granted to the state liquor
1112	1112	store to sell other alcoholic beverages.
1113	1113	(d) A license issued under this section shall authorize
1114	1114	the licensee to purchase mixed spirit beverages from a
1115	1115	licensed mixed spirit beverages wholesaler and sell the mixed
1116	1116	spirit beverages at retail commensurate with the privileges
1117	1117	granted to the licensee to sell beer and table wine.
1118	1118	(e) The board shall retain all limited mixed spirit
1119	1119	expanded retail licensing fees collected. The board may use
1120	1120	collected fees for regulatory and administrative purposes as
1121	1121	determined by the board in its discretion, including for the
1122	1122	purposes of replenishing the Cost of Evidence Fund established
1123	1123	pursuant to Section 28-3-55 to assist in the regulatory
1124	1124	functions of the board.
1125	1125	(f) Upon payment of a limited mixed spirit expanded
1126	1126	retail license fee, there shall be no additional licensing or
1127	1127	administrative requirements, including no requirement for
1128	1128	additional background checks imposed by the city, county, or
1129	1129	state for licensees for the sale of mixed spirit beverages.
1130	1130	Section 5. Sections 28-3A-21 and 28-3A-23, Code of
1131	1131	Alabama 1975, are amended to read as follows:
1132	1132	"§28-3A-21
1133	1133	(a) The following annual license fees are levied and
1134	1134	prescribed for licenses issued and renewed by the board
1135	1135	pursuant to the authority contained in this chapter:
1136	1136	(1) Manufacturer license, license fee of five hundred
1137	1137	533
1138	1138	534
1139	1139	535
1140	1140	536
1141	1141	537
1142	1142	538
1143	1143	539
1144	1144	540
1145	1145	541
1146	1146	542
1147	1147	543
1148	1148	544
1149	1149	545
1150	1150	546
1151	1151	547
1152	1152	548
1153	1153	549
1154	1154	550
1155	1155	551
1156	1156	552
1157	1157	553
1158	1158	554
1159	1159	555
1160	1160	556
1161	1161	557
1162	1162	558
1163	1163	559
1164	1164	560 SB268 INTRODUCED
1165	1165	Page 21
1166	1166	(1) Manufacturer license, license fee of five hundred
1167	1167	dollars ($500).
1168	1168	(2) Importer license, license fee of five hundred
1169	1169	dollars ($500).
1170	1170	(3) Liquor wholesalewholesaler license, license fee of
1171	1171	five hundred dollars ($500).
1172	1172	(4) WholesalerBeer wholesaler license, beer license fee
1173	1173	of five hundred fifty dollars ($550) or wine license fee of
1174	1174	five hundred fifty dollars ($550); license fee for beer and
1175	1175	wine of seven hundred fifty dollars ($750); plus two hundred
1176	1176	dollars ($200) for each warehouse in addition to the principal
1177	1177	warehouse.
1178	1178	(5) Wine wholesaler license, license fee of five
1179	1179	hundred fifty dollars ($550) plus two hundred dollars ($200)
1180	1180	for each warehouse in addition to the principal warehouse.
1181	1181	(6) Mixed spirit beverage wholesaler license, license
1182	1182	fee of five hundred fifty dollars ($550) plus two hundred
1183	1183	dollars ($200) for each warehouse in addition to the principal
1184	1184	warehouse.
1185	1185	(7) Beer, wine, and mixed spirit beverage wholesaler
1186	1186	license, license fee of one thousand dollars ($1,000) plus two
1187	1187	hundred dollars ($200) for each warehouse in addition to the
1188	1188	principal warehouse.
1189	1189	(5)(8) Warehouse license, license fee of two hundred
1190	1190	dollars ($200).
1191	1191	(6)(9) Lounge retail liquor license, license fee of
1192	1192	three hundred dollars ($300).
1193	1193	(7)(10) Restaurant retail liquor license, license fee
1194	1194	of three hundred dollars ($300).
1195	1195	561
1196	1196	562
1197	1197	563
1198	1198	564
1199	1199	565
1200	1200	566
1201	1201	567
1202	1202	568
1203	1203	569
1204	1204	570
1205	1205	571
1206	1206	572
1207	1207	573
1208	1208	574
1209	1209	575
1210	1210	576
1211	1211	577
1212	1212	578
1213	1213	579
1214	1214	580
1215	1215	581
1216	1216	582
1217	1217	583
1218	1218	584
1219	1219	585
1220	1220	586
1221	1221	587
1222	1222	588 SB268 INTRODUCED
1223	1223	Page 22
1224	1224	of three hundred dollars ($300).
1225	1225	(8)(11) Club liquor license, Class I license fee of
1226	1226	three hundred dollars ($300), Class II license fee of seven
1227	1227	hundred fifty dollars ($750).
1228	1228	(9)(12) Retail table wine license for off-premises
1229	1229	consumption, license fee of one hundred fifty dollars ($150).
1230	1230	(10)(13) Retail table wine license for on-premises and
1231	1231	off-premises consumption, license fee of one hundred fifty
1232	1232	dollars ($150).
1233	1233	(11)(14) Retail beer license for on-premises and
1234	1234	off-premises consumption, license fee of one hundred fifty
1235	1235	dollars ($150).
1236	1236	(12)(15) Retail beer license for off-premises
1237	1237	consumption, license fee of one hundred fifty dollars ($150).
1238	1238	(13)(16) Retail common carrier liquor license, license
1239	1239	fee of one hundred fifty dollars ($150) for each railroad,
1240	1240	airline, bus line, ship line, vessel , or other common carrier
1241	1241	entity with a vehicle passenger capacity of at least 10
1242	1242	people.
1243	1243	(14)(17) Special retail license, license fee of one
1244	1244	hundred dollars ($100) for 30 days or less; license fee of two
1245	1245	hundred fifty dollars ($250) for more than 30 days.
1246	1246	(15)(18) Special events retail license, license fee of
1247	1247	one hundred fifty dollars ($150).
1248	1248	(19) Mixed spirit expanded retail license, license fee
1249	1249	of five hundred dollars ($500).
1250	1250	(b) The license fees levied and fixed by this section
1251	1251	shall be paid before the license is issued or renewed.
1252	1252	(c) In addition to the foregoing filing fee and license
1253	1253	589
1254	1254	590
1255	1255	591
1256	1256	592
1257	1257	593
1258	1258	594
1259	1259	595
1260	1260	596
1261	1261	597
1262	1262	598
1263	1263	599
1264	1264	600
1265	1265	601
1266	1266	602
1267	1267	603
1268	1268	604
1269	1269	605
1270	1270	606
1271	1271	607
1272	1272	608
1273	1273	609
1274	1274	610
1275	1275	611
1276	1276	612
1277	1277	613
1278	1278	614
1279	1279	615
1280	1280	616 SB268 INTRODUCED
1281	1281	Page 23
1282	1282	(c) In addition to the foregoing filing fee and license
1283	1283	taxes or fees, any county or municipality in which the sale of
1284	1284	alcoholic beverages is permitted shall be authorized to may fix
1285	1285	and levy privileges or license taxes on any of the foregoing
1286	1286	licenses located or operated therein, conditioned on a permit
1287	1287	or license being issued by the board.
1288	1288	(d) No county or municipality shall have any authority
1289	1289	to levy a license or tax of any nature on any liquor store."
1290	1290	"§28-3A-23
1291	1291	(a) No license prescribed in this titlechapter shall be
1292	1292	issued or renewed until the provisions of this titlechapter
1293	1293	have been complied with and the filing and license fees other
1294	1294	than those levied by a municipality are paid to the board.
1295	1295	(b) Licenses shall be granted and issued by the board
1296	1296	only to reputable individuals, to associations whose members
1297	1297	are reputable individuals, or to reputable corporations
1298	1298	organized under the laws of this state or duly qualified
1299	1299	thereunder to do business in Alabama, or, in the case of
1300	1300	manufacturers, duly registered under the laws of Alabama, and
1301	1301	then only when it appears that all officers and directors of
1302	1302	the corporation are reputable individuals.
1303	1303	(c)(1) In addition to all other requirements, an
1304	1304	applicant for a license under this section shall submit to the
1305	1305	board a form, sworn to by the applicant, providing written
1306	1306	consent from the applicant for the release of criminal history
1307	1307	background information. The form shall also require the
1308	1308	applicant's name, date of birth, and Social Security number
1309	1309	for completion of a criminal history background check.
1310	1310	(2) An applicant shall provide the board with two
1311	1311	617
1312	1312	618
1313	1313	619
1314	1314	620
1315	1315	621
1316	1316	622
1317	1317	623
1318	1318	624
1319	1319	625
1320	1320	626
1321	1321	627
1322	1322	628
1323	1323	629
1324	1324	630
1325	1325	631
1326	1326	632
1327	1327	633
1328	1328	634
1329	1329	635
1330	1330	636
1331	1331	637
1332	1332	638
1333	1333	639
1334	1334	640
1335	1335	641
1336	1336	642
1337	1337	643
1338	1338	644 SB268 INTRODUCED
1339	1339	Page 24
1340	1340	(2) An applicant shall provide the board with two
1341	1341	complete functional sets of fingerprints, either cards or
1342	1342	electronic, properly executed by a criminal justice agency or
1343	1343	an individual properly trained in fingerprinting techniques.
1344	1344	The fingerprints and form shall be submitted by the board to
1345	1345	the State Bureau of InvestigationsInvestigation of the Alabama
1346	1346	Law Enforcement Agency for the purposes of furnishing criminal
1347	1347	background checks. The State Bureau of
1348	1348	InvestigationsInvestigation shall forward a copy of the
1349	1349	applicant's prints to the Federal Bureau of Investigation for
1350	1350	a national criminal background check. The applicant shall pay
1351	1351	all costs associated with the background checks required by
1352	1352	this section.
1353	1353	(3) For purposes of this section, the term "applicant"
1354	1354	shall includeincludes every person who has any proprietary or
1355	1355	profit interest of 10 percent or more in the licensed
1356	1356	establishment, but shall not include any public corporation
1357	1357	whose shares are traded on a recognized stock exchange.
1358	1358	(4) The board shall keep information received pursuant
1359	1359	to this section confidential, except that information received
1360	1360	and relied upon in denying the issuance of a license in this
1361	1361	state may be disclosed as may be necessary to support the
1362	1362	denial or when subpoenaed from a court.
1363	1363	(d) Every license issued under this titlechapter shall
1364	1364	be constantly and conspicuously displayed on the licensed
1365	1365	premises.
1366	1366	(e) Each retail liquor license application must be
1367	1367	approved by the governing authority of the municipality if the
1368	1368	retailer is located in a municipality, or by the county
1369	1369	645
1370	1370	646
1371	1371	647
1372	1372	648
1373	1373	649
1374	1374	650
1375	1375	651
1376	1376	652
1377	1377	653
1378	1378	654
1379	1379	655
1380	1380	656
1381	1381	657
1382	1382	658
1383	1383	659
1384	1384	660
1385	1385	661
1386	1386	662
1387	1387	663
1388	1388	664
1389	1389	665
1390	1390	666
1391	1391	667
1392	1392	668
1393	1393	669
1394	1394	670
1395	1395	671
1396	1396	672 SB268 INTRODUCED
1397	1397	Page 25
1398	1398	retailer is located in a municipality, or by the county
1399	1399	commission if the retailer is located in the county and
1400	1400	outside the limits of the municipality, before the board shall
1401	1401	have authority to grant the license.
1402	1402	(f) Any retailer may be granted licenses to maintain,
1403	1403	operate, or conduct any number of places for the sale of
1404	1404	alcoholic beverages, but a separate license must be secured
1405	1405	for each place where alcoholic beverages are sold. No retail
1406	1406	license issued under this titlechapter shall be used for more
1407	1407	than one premises, nor for separate types of operation on the
1408	1408	same premises. Provided, however, any such licensed retail
1409	1409	operation existing on May 14, 2009, and operating based on
1410	1410	dual licenses, both a club or lounge license and a restaurant
1411	1411	license, on the same premises shall be exempt from the
1412	1412	requirement of the preceding sentence and may continue to
1413	1413	operate under the dual licenses. Any rule adopted by the board
1414	1414	relating to the requirements concerning dual licenses, both a
1415	1415	club or lounge license and a restaurant license, shall not
1416	1416	apply to any retail operation existing on May 14, 2009. The
1417	1417	rules shall include, but not be limited to, the maintenance of
1418	1418	separate books, separate entrances, and separate inventories.
1419	1419	Each premises must have a separate retail license. Where more
1420	1420	than one retail operation is located within the same building,
1421	1421	each operation under a separate or different ownership is
1422	1422	required to obtain a separate retail license; and where more
1423	1423	than one type of retail operation located within the same
1424	1424	building is operated by the same licensee, the licensee must
1425	1425	have a license for each type of retail operation. Provided,
1426	1426	there shall be no licenses issued by the board for the sale of
1427	1427	673
1428	1428	674
1429	1429	675
1430	1430	676
1431	1431	677
1432	1432	678
1433	1433	679
1434	1434	680
1435	1435	681
1436	1436	682
1437	1437	683
1438	1438	684
1439	1439	685
1440	1440	686
1441	1441	687
1442	1442	688
1443	1443	689
1444	1444	690
1445	1445	691
1446	1446	692
1447	1447	693
1448	1448	694
1449	1449	695
1450	1450	696
1451	1451	697
1452	1452	698
1453	1453	699
1454	1454	700 SB268 INTRODUCED
1455	1455	Page 26
1456	1456	there shall be no licenses issued by the board for the sale of
1457	1457	liquor, beer, or wine by rolling stores.
1458	1458	(g) No retailer shall sell any alcoholic beverages for
1459	1459	consumption on the licensed premises except in a room or rooms
1460	1460	or place on the licensed premises at all times accessible to
1461	1461	the use and accommodation of the general public; but this
1462	1462	section shall not be interpreted to prevent a hotel or club
1463	1463	licensee from selling alcoholic beverages in any room of the
1464	1464	hotel or club house occupied by a bona fide registered guest
1465	1465	or member or private party entitled to purchase the same.
1466	1466	(h) All beer, except draft or keg beer, sold by
1467	1467	retailers must be sold or dispensed in bottles, cans, or other
1468	1468	containers not to exceed 25.4 ounces. All wine sold by
1469	1469	retailers for off-premises consumption must be sold or
1470	1470	dispensed in bottles or other containers in accordance with
1471	1471	the standards of fill specified in the then effective
1472	1472	standards of fill for wine prescribed by the U.S. Treasury
1473	1473	Department.
1474	1474	(i) Draft or keg beer may be sold or dispensed within
1475	1475	this state within those counties in which and in the manner in
1476	1476	which the sale of draft or keg beer was authorized by law on
1477	1477	September 30, 1980, or in which the sale of draft or keg beer
1478	1478	is hereafter authorized by law. In rural communities with a
1479	1479	predominantly foreign population, after the payment of the tax
1480	1480	imposed by this title, draft or keg beer may be sold or
1481	1481	dispensed by special permit from the board, when, in the
1482	1482	judgment of the board, the use and consumption of draft or keg
1483	1483	beer is in accordance with the habit and customs of the people
1484	1484	of any such rural community. The board may grant to any civic
1485	1485	701
1486	1486	702
1487	1487	703
1488	1488	704
1489	1489	705
1490	1490	706
1491	1491	707
1492	1492	708
1493	1493	709
1494	1494	710
1495	1495	711
1496	1496	712
1497	1497	713
1498	1498	714
1499	1499	715
1500	1500	716
1501	1501	717
1502	1502	718
1503	1503	719
1504	1504	720
1505	1505	721
1506	1506	722
1507	1507	723
1508	1508	724
1509	1509	725
1510	1510	726
1511	1511	727
1512	1512	728 SB268 INTRODUCED
1513	1513	Page 27
1514	1514	of any such rural community. The board may grant to any civic
1515	1515	center authority or its franchisee or concessionaire, to which
1516	1516	the board may have issued or may simultaneously issue a retail
1517	1517	license under the provisions of this title, a revocable
1518	1518	temporary permit to sell or dispense in any part of its civic
1519	1519	center, for consumption therein, draft or keg beer. Either
1520	1520	permit shall be promptly revoked by the board if, in its
1521	1521	judgment, the same tends to create intemperance or is
1522	1522	prejudicial to the welfare, health, peace, temperance, and
1523	1523	safety of the people of the community or of the state.
1524	1524	(j) No importer shall sell alcoholic beverages to any
1525	1525	person other than a wholesaler licensee, or sell to a
1526	1526	wholesaler licensee any brand or brands of alcoholic beverages
1527	1527	for sale or distribution in this state, except where the
1528	1528	importer has been granted written authorization from the
1529	1529	manufacturer thereof to import and sell the brand or brands to
1530	1530	be sold in this state, which authorization is on file with the
1531	1531	board.
1532	1532	(k) No wholesaler shall maintain or operate any place
1533	1533	where sales are made other than that for which the wholesale
1534	1534	license is granted; provided, however, a wholesaler may be
1535	1535	licensed to sell and distribute liquor, wine, and beer, and
1536	1536	mixed spirit beverages . No wholesaler shall maintain any place
1537	1537	for the storage of liquor, wine, or beer, or mixed spirit
1538	1538	beverages unless the same has been approved by the board. No
1539	1539	wholesaler license shall be issued for any premises in any
1540	1540	part of which there is operated any retail license for the
1541	1541	sale of alcoholic beverages.
1542	1542	(l) Licenses issued under this titlechapter may not be
1543	1543	729
1544	1544	730
1545	1545	731
1546	1546	732
1547	1547	733
1548	1548	734
1549	1549	735
1550	1550	736
1551	1551	737
1552	1552	738
1553	1553	739
1554	1554	740
1555	1555	741
1556	1556	742
1557	1557	743
1558	1558	744
1559	1559	745
1560	1560	746
1561	1561	747
1562	1562	748
1563	1563	749
1564	1564	750
1565	1565	751
1566	1566	752
1567	1567	753
1568	1568	754
1569	1569	755
1570	1570	756 SB268 INTRODUCED
1571	1571	Page 28
1572	1572	(l) Licenses issued under this titlechapter may not be
1573	1573	assigned. The board may transfer any license from one person
1574	1574	to another, or from one place to another within the same
1575	1575	governing jurisdiction, or both, as the board may determine;
1576	1576	but no transfers shall be made to a person who would not have
1577	1577	been eligible to receive the license originally, nor for the
1578	1578	transaction of business at a place for which the license could
1579	1579	not originally have been issued lawfully.
1580	1580	(m) Every applicant for a transfer of a license shall
1581	1581	file a written application with the board within such time as
1582	1582	the board shall fix in its rules. Whenever any license is
1583	1583	transferred, there shall be collected a filing fee of fifty
1584	1584	dollars ($50), to be paid to the board, and the board shall
1585	1585	pay the fee into the State Treasury to the credit of the Beer
1586	1586	Tax and License Fund of the board.
1587	1587	(n) In the event that any person to whom a license has
1588	1588	been issued under the terms of this titlechapter becomes
1589	1589	insolvent, makes an assignment for the benefit of creditors,
1590	1590	or is adjudicated as bankrupt by either voluntary or
1591	1591	involuntary action, the license of the person shall
1592	1592	immediately terminate and be cancelledcanceled without any
1593	1593	action on the part of the board, and there shall be no refund
1594	1594	made, or credit given, for the unused portion of the license
1595	1595	fee for the remainder of the license year for which the
1596	1596	license was granted. Thereafter, no license shall be issued by
1597	1597	the board for the premises, wherein the license was conducted,
1598	1598	to any assignee, committee, trustee, receiver, or successor of
1599	1599	the licensee until a hearing has been held by the board as in
1600	1600	the case of a new application for license. In all such cases,
1601	1601	757
1602	1602	758
1603	1603	759
1604	1604	760
1605	1605	761
1606	1606	762
1607	1607	763
1608	1608	764
1609	1609	765
1610	1610	766
1611	1611	767
1612	1612	768
1613	1613	769
1614	1614	770
1615	1615	771
1616	1616	772
1617	1617	773
1618	1618	774
1619	1619	775
1620	1620	776
1621	1621	777
1622	1622	778
1623	1623	779
1624	1624	780
1625	1625	781
1626	1626	782
1627	1627	783
1628	1628	784 SB268 INTRODUCED
1629	1629	Page 29
1630	1630	the case of a new application for license. In all such cases,
1631	1631	the board shall have the sole and final discretion as to the
1632	1632	propriety of the issuance of a license for the premises, the
1633	1633	time it shall issue, and the period for which it shall be
1634	1634	issued, and shall have the further power to impose conditions
1635	1635	under which the licensed premises shall be conducted."
1636	1636	Section 6. Chapter 8B, commencing with Section 28-8B-1,
1637	1637	is added to Title 28 of the Code of Alabama 1975, to read as
1638	1638	follows:
1639	1639	§28-8B-1
1640	1640	(a) The Legislature hereby finds and declares that this
1641	1641	chapter is enacted pursuant to the authority granted to the
1642	1642	state under the Twenty-First Amendment to the United States
1643	1643	Constitution, the powers reserved to the state under the Tenth
1644	1644	Amendment to the United States Constitution, and the inherent
1645	1645	powers of the state under the Constitution of Alabama of 2022,
1646	1646	in order to regulate the traffic of alcoholic beverages and to
1647	1647	substitute the regulations and oversight established in this
1648	1648	act for the application of federal and state antitrust laws
1649	1649	that otherwise would apply to any potential anti-competitive
1650	1650	effects of this title. For the avoidance of doubt, the intent
1651	1651	of the Legislature is to maintain the uniform three-tier
1652	1652	system of control over the sale, purchase, taxation,
1653	1653	transportation, manufacture, consumption, and possession of
1654	1654	alcoholic beverages in the state to promote the health,
1655	1655	safety, and welfare of residents of this state by, among other
1656	1656	purposes, ensuring the state shall be able to register, audit,
1657	1657	inspect, seize, recall, and test alcoholic beverages shipped
1658	1658	into, distributed, and sold throughout this state; and this
1659	1659	785
1660	1660	786
1661	1661	787
1662	1662	788
1663	1663	789
1664	1664	790
1665	1665	791
1666	1666	792
1667	1667	793
1668	1668	794
1669	1669	795
1670	1670	796
1671	1671	797
1672	1672	798
1673	1673	799
1674	1674	800
1675	1675	801
1676	1676	802
1677	1677	803
1678	1678	804
1679	1679	805
1680	1680	806
1681	1681	807
1682	1682	808
1683	1683	809
1684	1684	810
1685	1685	811
1686	1686	812 SB268 INTRODUCED
1687	1687	Page 30
1688	1688	into, distributed, and sold throughout this state; and this
1689	1689	expression of the policy and intent of the Legislature is
1690	1690	intended to satisfy the clear articulation test for state
1691	1691	action immunity as has been established by the United States
1692	1692	Supreme Court in California Retail Liquor Dealers Assn. v.
1693	1693	Midcal Aluminum, Inc., et al.
1694	1694	(b) If any provision of this chapter, or its
1695	1695	application to any person or circumstance, is determined by a
1696	1696	court to be invalid or unconstitutional, that provision shall
1697	1697	be stricken and the remaining provisions shall be construed in
1698	1698	accordance with the intent of the Legislature to further limit
1699	1699	rather than expand commerce in alcoholic beverages, including
1700	1700	by prohibiting any commerce in alcoholic beverages not
1701	1701	expressly authorized, and to enhance strict regulatory control
1702	1702	over taxation, distribution, and sale of alcoholic beverages
1703	1703	through the existing uniform system of regulation of alcoholic
1704	1704	beverages.
1705	1705	§28-8B-2
1706	1706	(a) This chapter applies only to mixed spirit beverages
1707	1707	and does not apply to regulation of beer or wine franchises.
1708	1708	(b) Nothing in this chapter shall be deemed to repeal
1709	1709	or amend any existing beer or wine franchise laws. This
1710	1710	chapter is intended to address mixed spirit beverages, and to
1711	1711	leave in effect and unchanged any local or state franchise
1712	1712	laws existing on the effective date of this act.
1713	1713	§28-8B-3
1714	1714	(a) Each supplier of mixed spirit beverages licensed by
1715	1715	the board to sell its mixed spirit beverages within the State
1716	1716	of Alabama shall sell its mixed spirit beverages only through
1717	1717	813
1718	1718	814
1719	1719	815
1720	1720	816
1721	1721	817
1722	1722	818
1723	1723	819
1724	1724	820
1725	1725	821
1726	1726	822
1727	1727	823
1728	1728	824
1729	1729	825
1730	1730	826
1731	1731	827
1732	1732	828
1733	1733	829
1734	1734	830
1735	1735	831
1736	1736	832
1737	1737	833
1738	1738	834
1739	1739	835
1740	1740	836
1741	1741	837
1742	1742	838
1743	1743	839
1744	1744	840 SB268 INTRODUCED
1745	1745	Page 31
1746	1746	of Alabama shall sell its mixed spirit beverages only through
1747	1747	wholesaler licensees of the board and shall grant in writing
1748	1748	to each of its wholesalers a distribution agreement which
1749	1749	contains the wholesaler's exclusive sales territory for the
1750	1750	distribution of the supplier's designated brand in accordance
1751	1751	with Chapter 8.
1752	1752	(b) A licensed retailer may not purchase mixed spirit
1753	1753	beverages from any entity other than the licensed wholesaler
1754	1754	designated by the manufacturer of the mixed spirit beverages.
1755	1755	§28-8B-4
1756	1756	(a) For the purposes of this chapter, the following
1757	1757	terms have the following meanings:
1758	1758	(1) DISTRIBUTION AGREEMENT. Any written and signed
1759	1759	agreement between a wholesaler and a supplier, whereby a
1760	1760	wholesaler is granted the right to purchase and sell a brand
1761	1761	of mixed spirit beverages sold by a supplier.
1762	1762	(2) FAIR MARKET VALUE. An amount equal to a multiple of
1763	1763	the wholesaler's gross profit on the wholesaler's sales of the
1764	1764	supplier's products in the 12-month period immediately
1765	1765	preceding the date of the notice of termination or non-renewal
1766	1766	by supplier.
1767	1767	(3) GOOD CAUSE. A material breach by the wholesaler of
1768	1768	an essential element in a distribution agreement with a
1769	1769	supplier which is uncured or which reoccurs three or more
1770	1770	times.
1771	1771	(4) GROSS PROFIT. The wholesaler's selling price, net
1772	1772	of promotions, discounts, allowances, and freight, of the
1773	1773	products sold during such 12-month period, less the
1774	1774	wholesaler's cost to purchase the products from the supplier,
1775	1775	841
1776	1776	842
1777	1777	843
1778	1778	844
1779	1779	845
1780	1780	846
1781	1781	847
1782	1782	848
1783	1783	849
1784	1784	850
1785	1785	851
1786	1786	852
1787	1787	853
1788	1788	854
1789	1789	855
1790	1790	856
1791	1791	857
1792	1792	858
1793	1793	859
1794	1794	860
1795	1795	861
1796	1796	862
1797	1797	863
1798	1798	864
1799	1799	865
1800	1800	866
1801	1801	867
1802	1802	868 SB268 INTRODUCED
1803	1803	Page 32
1804	1804	wholesaler's cost to purchase the products from the supplier,
1805	1805	net of any discounts, promotions, and allowances from
1806	1806	supplier.
1807	1807	(b) Upon a supplier's termination or non-renewal of a
1808	1808	distribution agreement with a wholesaler, except where
1809	1809	termination or non-renewal is for good cause, the supplier
1810	1810	shall pay the wholesaler reasonable compensation in an amount
1811	1811	equal to the fair market value of the wholesaler's business
1812	1812	attributable to the supplier's portfolio, including the value
1813	1813	of the distribution rights, current saleable inventory,
1814	1814	goodwill, and other relevant assets.
1815	1815	(c) The supplier and wholesaler shall have 30 days
1816	1816	following receipt of the supplier's notice of termination or
1817	1817	non-renewal to agree upon a multiple of gross profit in
1818	1818	determining fair market value. Following the notice of
1819	1819	termination or non-renewal, but prior to determination of the
1820	1820	fair market value of the supplier's portfolio, the supplier
1821	1821	and wholesaler shall each continue to operate in good faith in
1822	1822	the regular course of the business relationship.
1823	1823	(d)(1) In determining fair market value, in the event
1824	1824	that supplier and wholesaler cannot agree upon the multiple of
1825	1825	gross profit after 30 days, the parties shall then have 10
1826	1826	business days to each, at their own cost, appoint an
1827	1827	independent third-party appraiser with demonstrable experience
1828	1828	in valuating alcohol beverage distribution rights. Each
1829	1829	party's independent appraiser, within 30 days, shall submit in
1830	1830	writing the fair market value appraisal of the supplier's
1831	1831	portfolio, including disclosing the multiple of gross profit
1832	1832	used to arrive at the valuation.
1833	1833	869
1834	1834	870
1835	1835	871
1836	1836	872
1837	1837	873
1838	1838	874
1839	1839	875
1840	1840	876
1841	1841	877
1842	1842	878
1843	1843	879
1844	1844	880
1845	1845	881
1846	1846	882
1847	1847	883
1848	1848	884
1849	1849	885
1850	1850	886
1851	1851	887
1852	1852	888
1853	1853	889
1854	1854	890
1855	1855	891
1856	1856	892
1857	1857	893
1858	1858	894
1859	1859	895
1860	1860	896 SB268 INTRODUCED
1861	1861	Page 33
1862	1862	used to arrive at the valuation.
1863	1863	(2) If the independent appraisers' valuations of the
1864	1864	supplier's portfolio are within 10 percent of each other, the
1865	1865	fair market value shall be the average of the two valuations.
1866	1866	(3) If the independent appraisers' valuations are not
1867	1867	within 10 percent of each other, a third independent appraiser
1868	1868	with experience in valuating alcohol beverage distribution
1869	1869	rights shall be retained by mutual agreement of the parties
1870	1870	within 10 business days to assess the fair market value, and
1871	1871	the fair market value shall be submitted in writing by the
1872	1872	third independent appraiser within 30 days. The cost of the
1873	1873	third independent appraiser shall be shared equally by the
1874	1874	parties. The fair market value shall then be the average of:
1875	1875	(i) the third independent appraiser's valuation and (ii) the
1876	1876	average of the first two valuations.
1877	1877	(e) The supplier shall have no more than seven business
1878	1878	days after the determination of fair market value within which
1879	1879	to remit payment of reasonable compensation to the wholesaler.
1880	1880	Section 7. If any provision of this act, or its
1881	1881	application to any person or circumstance, is determined by a
1882	1882	court to be invalid or unconstitutional, that provision shall
1883	1883	be stricken and the remaining provisions shall be construed in
1884	1884	accordance with the intent of the Legislature to further limit
1885	1885	rather than expand commerce in alcoholic beverages, including
1886	1886	by prohibiting any commerce in alcoholic beverages not
1887	1887	expressly authorized, and to enhance strict regulatory control
1888	1888	over taxation, distribution, and sale of alcoholic beverages
1889	1889	through the existing uniform system of regulation of alcoholic
1890	1890	beverages.
1891	1891	897
1892	1892	898
1893	1893	899
1894	1894	900
1895	1895	901
1896	1896	902
1897	1897	903
1898	1898	904
1899	1899	905
1900	1900	906
1901	1901	907
1902	1902	908
1903	1903	909
1904	1904	910
1905	1905	911
1906	1906	912
1907	1907	913
1908	1908	914
1909	1909	915
1910	1910	916
1911	1911	917
1912	1912	918
1913	1913	919
1914	1914	920
1915	1915	921
1916	1916	922
1917	1917	923
1918	1918	924 SB268 INTRODUCED
1919	1919	Page 34
1920	1920	beverages.
1921	1921	Section 8. This act shall become effective on October
1922	1922	1, 2025.
1923	1923	925
1924	1924	926