SB312INTRODUCED
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SB312
XDQIS77-1
By Senators Smitherman, Bell
RFD: Fiscal Responsibility and Economic Development
First Read: 08-Apr-25
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5 XDQIS77-1 04/07/2025 JC (L)LG 2025-1271
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First Read: 08-Apr-25
SYNOPSIS:
This bill would allow an entity that serves
alcoholic beverages under Alcoholic Beverage Control
Board licenses that allow service at events for a
limited period of time to store the beverages in a
permanent facility for transfer to event locations.
Under this license, unconsumed beverages would be
required to be returned to the storage facility for
subsequent transfer to another licensed event.
This bill would also create a new license for
state or local governmental entities to serve alcoholic
beverages on a limited basis on property which they own
or lease, such as concert venues, exhibition halls,
historic properties, or parks.
This bill would also set fees for the licenses.
A BILL
TO BE ENTITLED
AN ACT
Relating to alcoholic beverages; to add Section
28-3A-19.2 to the Code of Alabama 1975, to require the
Alcoholic Beverage Control Board to issue a license to
dispense alcoholic beverages on an occasional basis on
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dispense alcoholic beverages on an occasional basis on
property controlled by the state or a political subdivision;
to add Chapter 3B to Title 28, Code of Alabama 1975, to
require the Alcoholic Beverage Control Board to issue a
license to store alcoholic beverages in a facility for
transfer to locations also licensed by the board for special
events; to amend Sections 28-3A-19 and 28-3A-20 to make
conforming changes; and to amend Section 28-3A-21, Code of
Alabama 1975, to set license fees.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 28-3A-19.2 is added to the Code of
Alabama 1975, to read as follows:
§28-3A-19.2
(a) Upon payment of the government venue license fee
as established in Section 28-3A-21, the board shall issue a
government venue license to any department or agency of this
state, or any political subdivision of the same, permitting
the licensee to store and dispense alcoholic beverages for
on-premises consumption in a wet county.
(b) The government venue license is a special retail
license, and storage and dispensing of alcoholic beverages
shall be restricted to an occasional use basis. For the
purposes of this section, "occasional use basis" refers to a
location where alcoholic beverages are dispensed at individual
events that may be open to the public or restricted to private
parties. The term excludes locations where alcoholic beverages
are dispensed to the public during continual business hours on
a regular daily or weekly schedule.
(c) The location where alcoholic beverages are stored
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(c) The location where alcoholic beverages are stored
and dispensed must be on property owned by the state or a
political subdivision, or leased by the state or a political
subdivision for a term of no less than three years, and may
include, but not be limited to, civic centers, community event
spaces, concert centers, amphitheaters, music halls,
convention centers, exhibition halls, stadiums, sports
complexes, historic properties, parks, fairgrounds, or other
outdoor spaces.
(d) The government venue license shall be issued for a
period not to exceed one year.
(e) Any holder of a special retail license which is a
department or agency of the state, or a political subdivision
of the same, may convert the special retail license to a
government venue license no later than September 30, 2026.
Section 2. Chapter 3B, commencing with Section
28-3B-1, is added to Title 28, Code of Alabama 1975, to read
as follows:
Chapter 3B
§28-3B-1
The Legislature finds the following:
(1) 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 chapter for the application of federal and
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established in this chapter 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 ensuring, among other purposes, 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 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.
(2) This chapter establishes a structured framework for
certain licensees to store and serve alcoholic beverages for
special events under public or private sponsorship.
§28-3B-2
For purposes of this chapter, the following terms have
the following meanings:
(1) ELIGIBLE ENTITY. A holder of a government venue
license, or an entity that has been granted by the board at
least three of any of the following licenses within the 12
months preceding application for an event storage license:
a. Special events retail license of 7 days or less.
b. Non-profit special events retail license.
c. Special retail license of 30 days or less.
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c. Special retail license of 30 days or less.
(2) LICENSE TYPE. The term refers to an event storage
license, or any occasional use license.
(3) OCCASIONAL USE LICENSE. The term includes all of
the following licenses issued by the board:
a. Government venue license.
b. Special events retail license of seven days or less.
c. Nonprofit special events retail license.
d. Special retail license of 30 days or less.
§28-3B-3
Upon payment of the event storage license fee as
established in Section 28-3A-21, the board shall issue an
event storage license to an eligible entity to store alcoholic
beverages at a storage facility and transfer the alcoholic
beverages to another location under an occasional use license
in compliance with this chapter.
§28-3B-4
(a) Storage of alcoholic beverages at a designated
storage facility under an event storage license shall be
restricted to transfer to any location permitted under an
occasional use license.
(b) An applicant for an event storage license shall
disclose on the application the specific occasional use
license each storage facility under the event storage license
is intended to service.
(c) The license issued under this chapter shall be for
a period of one year.
§28-3B-5
(a) Up to three storage facilities may be designated
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(a) Up to three storage facilities may be designated
under a single event storage license, each of which shall be
at least 100 miles apart within the State of Alabama.
(b) A storage facility shall comply with all of the
following requirements:
(1) Be an enclosed, secure structure under lock when
not in use.
(2) Have an access control system to restrict and
monitor entry.
(3) Afford a temperature-controlled environment
appropriate for each kind of alcoholic beverage that may be
stored.
(4) May not be a board-licensed warehouse.
(5) May not be a unit in a commercial storage facility.
(6) Comply with local zoning and building codes.
§28-3B-6
(a) Alcoholic beverages to be stored under an event
storage license, in the case of beer or wine, shall be
purchased from a wholesaler, and in the case of liquor, shall
be purchased directly from the board on a wholesale basis.
(b) Alcoholic beverages purchased by an event storage
license holder may be transferred immediately upon purchase to
a location under an occasional use license for dispensing but
shall be returned from that location to a storage facility.
(c) Once alcoholic beverages are received in a storage
facility, after subsequent transfer to a location under an
occasional use license for dispensing, any unused portion
shall be returned to the same storage facility before transfer
to another location under a different occasional use license.
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to another location under a different occasional use license.
§28-3B-7
(a) An event storage license holder shall document each
purchase of alcoholic beverages on a form to be prescribed by
the board, which shall include, but not be limited to, the
following information:
(1) The name under which the event storage license is
issued.
(2) The event storage license number.
(3) The date of the purchase.
(4) The type of alcoholic beverage, the brand name, and
the quantity.
(5) The initial destination of the alcoholic beverages
purchased, identified by the location, license type, and
number.
(6) If the initial destination of the alcoholic
beverages purchased is the location of an occasional use
license, the event storage license holder shall identify the
storage facility to which any remaining alcoholic beverages
are transferred, which shall be documented as a transfer
pursuant to subsection (b).
(7) Signed certification that the purchase is in
compliance with board rules.
(b) An event storage license holder shall document each
transfer of alcoholic beverages on a form to be prescribed by
the board, which shall include, but not be limited to, the
following information:
(1) The name under which the event storage license is
issued.
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issued.
(2) The event storage license number.
(3) The date of the transfer.
(4) The type of alcoholic beverage, the brand name, and
the quantity.
(5) The origin of the transfer, identified by the
location, license type, and number.
(6) The destination of the transfer, identified by
location, license type, and number.
(7) Signed certification that the transfer is in
compliance with board rules.
§28-3B-8
(a) Any applicant for, or holder of, an event storage
license, authorizes all of the following:
(1) Board personnel or law enforcement officers with
jurisdiction to enter a storage facility and observe
operations and to make a warrantless search for the purpose of
enforcing this title and the rules of the board.
(2) Board personnel to examine and inspect equipment,
inventory, invoices, receipts, books, records, and related
papers, and to make copies of the same.
(3) For the purposes of this section, "storage
facility" includes any adjoining or adjacent structure
occupied by the license holder, including a private dwelling.
(b)(1) An event storage license holder shall retain all
documentation relating to alcoholic beverage purchases and
transfers for a minimum of three years after the date of the
purchase or transfer.
(2) All purchase and transfer records may be maintained
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(2) All purchase and transfer records may be maintained
in an electronic format so long as the records may be promptly
provided in a readable format upon request by the board.
(c)(1) The board may inspect and audit an event storage
license holder's records on any weekday that is not a federal
or state holiday between 8:00 a.m. and 5:00 p.m., or as
otherwise scheduled by mutual agreement.
(2) If an inspection or audit is attempted and a
storage facility is closed, upon notice, the license holder
shall make the storage facility available for inspection or
audit within 48 hours plus the next available weekday that is
not a federal or state holiday.
(d)(1) If a discrepancy is discovered during an
inspection or audit, the board may issue a compliance warning,
require immediate corrective action, or issue a citation.
(2) Reoccurring discrepancies discovered by audit or
inspection may be considered a violation pursuant to rules
adopted by the board.
(3) The board may assess a civil fine of no more than
one thousand dollars ($1,000) for each occurrence that is a
violation of this chapter and may revoke the license.
§28-3B-9
The board shall adopt rules and develop forms to
implement and enforce this chapter.
Section 3. Sections 28-3A-19, 28-3A-20, and 28-3A-21,
Code of Alabama 1975, are amended to read as follows:
"§28-3A-19
(a) Upon an applicant's compliance with the provisions
of this chapter and the regulations made rules adopted
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of this chapter and the regulations made rules adopted
thereunder, the board shall issue a special retail license in
wet counties for a state park, racing commission, fair
authority, airport authority, or civic center authority, or
the franchises or concessionaire of suchthe park, commission ,
or authority, and may, in its discretion, may issue a special
retail license to any other valid responsible organization of
good reputation for sucha period of time not to exceed one
year and upon such terms and conditions as the board shall
prescribe,.which willThe license shall authorize the licensee
to purchase, where the retail sale thereof is authorized by
the board, liquor and wine from the board or as authorized by
the board and table wine and beer from any wholesale licensee
of the board, and to sell at retail and dispense suchthe
alcoholic beverages as are authorized by the board at such at
locations authorized by the boardlicense upon such terms and
conditions as prescribed by the board. Provided, however, no
No sale of alcoholic beverages shall be permitted on any
Sunday after the hour of 2:00 A.Ma.m.
(b) With respect to an application for a license under
this section not to exceed 30 days, the applicant shall
indicate if the alcoholic beverages to be dispensed will be
received from, and returned to, a storage facility under an
event storage license as provided under Chapter 3B ."
"§28-3A-20
(a) Upon an applicant's compliance with this chapter
and the regulations made rulesadopted thereunder, and upon
application made on a form provided by the board at least 25
days in advance of the event for which a license is
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days in advance of the event for which a license is
grantedsought, the board shall issue a special events retail
license for a valid,to a responsible organization of good
reputation, for a period not to exceed seven days , and upon
such terms and conditions as the board may prescribe. The
license shall authorize the licensee to purchase, where the
retail sale thereof is authorized by the board, liquor and
wine from the board or as authorized by the board and table
wine and beer from any wholesale licensee of the board , and to
sell at retail and dispense suchthe alcoholic beverages as are
authorized by the board to the patrons, guests, or members of
the organization at suchthe locations or areas as shall be
authorized by the boardlicense upon suchthe terms and
conditions as prescribed by the board. No sale of alcoholic
beverages shall be permitted on any Sunday after the hour of
2:00 A.Ma.m.
(b) With respect to an application for a license under
this section, the applicant shall indicate if the alcoholic
beverages to be dispensed will be received from, and returned
to, a storage facility under an event storage license as
provided under Chapter 3B ."
"§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).
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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 dolars ($550) plus two hundred dollars ($200)
for each warehouse in addition to the principal warehouse.
(6) Warehouse license, license fee of two hundred
dollars ($200).
(6)(7) Lounge retail liquor license, license fee of
three hundred dollars ($300).
(7)(8) Restaurant retail liquor license, license fee of
three hundred dollars ($300).
(8)(9) Club liquor license, Class I license fee of
three hundred dollars ($300), Class II license fee of seven
hundred fifty dollars ($750).
(9)(10) Retail table wine license for off-premises
consumption, license fee of one hundred fifty dollars ($150).
(10)(11) Retail table wine license for on-premises and
off-premises consumption, license fee of one hundred fifty
dollars ($150).
(11)(12) Retail beer license for on-premises and
off-premises consumption, license fee of one hundred fifty
dollars ($150).
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dollars ($150).
(12)(13) Retail beer license for off-premises
consumption, license fee of one hundred fifty dollars ($150).
(13)(14) 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)(15) 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)(16) Special events retail license, license fee of
one hundred fifty dollars ($150).
(17) Government venue license, license fee of two
hundred fifty dollars ($250).
(18) Event storage license, license fee of five hundred
fifty dollars ($550).
(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. This act shall become effective on October
1, 2025.
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