25 LC 55 0405 House Bill 126 By: Representative Carpenter of the 4 th A BILL TO BE ENTITLED AN ACT To amend Title 3 of the Official Code of Georgia Annotated, relating to alcoholic beverages, 1 so as to provide for the sale or distribution of alcoholic beverages purchased from designated2 retail dealers by small businesses; to provide for the license and regulation of such small3 businesses; to provide for the designation of retail dealers by such small businesses; to4 provide for record keeping and reports; to provide for the transportation of alcoholic5 beverages purchased from designated retail dealers by small businesses; to provide6 requirements relating to the sale of alcoholic beverages to small businesses; to provide for7 rules and regulations; to provide for penalties; to provide for related matters; to repeal8 conflicting laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Title 3 of the Official Code of Georgia Annotated, relating to alcoholic beverages, is12 amended by adding a new chapter to read as follows:13 H. B. 126 - 1 - 25 LC 55 0405 "CHAPTER 1614 3-16-1.15 As used in this chapter, the term:16 (1) 'Alcoholic beverages' means distilled spirits, malt beverages, and wines.17 (2) 'Small business' means a business enterprise whose gross annual revenue from the18 sale of alcoholic beverages does not:19 (1) Exceed $250,000.00; and20 (2) Constitute more than 25 percent of such business enterprise's gross annual revenue21 from all sources.22 3-16-2.23 (a) Notwithstanding any other provision of this title to the contrary and subject to the24 requirements of this chapter, in all counties or municipalities in which the sale of alcoholic25 beverages is lawful, the commissioner may authorize a small business to sell or otherwise26 distribute alcoholic beverages purchased from retail dealers for consumption on the27 premises of such small business.28 (b) All alcoholic beverages sold or otherwise distributed by a small business under this29 chapter shall be purchased from a retail dealer that is designated by such small business as30 provided in paragraph (1) of Code Section 3-16-3 and that is located in the same31 municipality or, if not within a municipality, the same county in which the location of the32 small business where such small business will sell or distribute such alcoholic beverages33 is located.34 3-16-3.35 In order for a small business to be authorized to sell or distribute alcoholic beverages36 purchased from retail dealers under this chapter, such small business shall be required to:37 H. B. 126 - 2 - 25 LC 55 0405 (1) Submit an application to the department in a form and manner as the commissioner38 may prescribe, which application shall include the name of the small business, the name39 or names of the owner or owners of such small business, the physical address of the40 location where the small business will sell or distribute such alcoholic beverages, the total41 gross revenue the small business received from the sale of alcoholic beverages in the42 prior calendar year, the total revenue the small business received from all sources in the43 prior calendar year, and the names and physical addresses of no more than three retail44 dealers designated by such small business from which such small business will purchase45 alcoholic beverages along with a signed statement from such retail dealers indicating that46 they consent to such designation;47 (2) Provide satisfactory reports to the commissioner on forms provided by the48 department stating the quantity of any and all alcoholic beverages purchased from a49 designated retail dealer and such other information as may be required by the50 commissioner;51 (3) Maintain accurate records, which shall be made available to the department upon52 request, relating to:53 (A) Any and all alcoholic beverages purchased by such small business from a54 designated retail dealer;55 (B) Any and all alcoholic beverages sold or distributed by such small business; and56 (C) The revenue received by such small business from all sources; and57 (4) Pay to the department an annual registration fee in an amount determined by the58 commissioner, which shall not exceed $300.00.59 3-16-4.60 (a) The commissioner shall issue to each small business authorized to sell or otherwise61 distribute alcoholic beverages purchased from retail dealers under this chapter a license,62 which shall be renewed annually.63 H. B. 126 - 3 - 25 LC 55 0405 (b) A separate license under this chapter shall be required for each location of a small64 business where such small business sells or otherwise distributes alcoholic beverages65 purchased from retail dealers.66 3-16-5.67 (a) Notwithstanding any other provision of this title to the contrary and subject to the68 requirements of this Code section, a small business, or agent thereof, that is authorized to69 sell or otherwise distribute alcoholic beverages purchased from retail dealers under this70 chapter shall be authorized to purchase from a retail dealer designated by such owner as71 provided in paragraph (1) of Code Section 3-16-3 alcoholic beverages for resale or72 distribution for consumption on the premises of such small business that is identified in the73 application submitted by such small business pursuant to paragraph (1) of Code Section74 3-16-3 and to transport such alcoholic beverages from such retail dealer to such premises.75 (b) When purchasing alcoholic beverages from a retail dealer as authorized under this76 chapter, the small business, or agent thereof, shall present to the retail dealer, at the time77 of purchase, a valid license issued by the commissioner pursuant to Code Section 3-16-4.78 (c) Each retail dealer designated by a small business as provided in paragraph (1) of Code79 Section 3-16-3 shall maintain accurate records of any and all alcoholic beverages sold to80 such small business and make such records available to the department upon request.81 3-16-6.82 The commissioner shall promulgate and enforce such rules and regulations as he or she 83 may deem reasonable and necessary to effectuate the provisions of this chapter.84 3-16-7.85 (a)(1) Unless otherwise authorized by law, it shall be unlawful for a small business or86 agent thereof to:87 H. B. 126 - 4 - 25 LC 55 0405 (A) Purchase alcoholic beverages from a retail dealer without a valid license issued88 pursuant to this chapter;89 (B) Sell or otherwise distribute alcoholic beverages purchased from a retail dealer90 without a valid license issued pursuant to this chapter;91 (C) Purchase alcoholic beverages from a retail dealer that is not designated by such92 small business as provided in paragraph (1) of Code Section 3-16-3; or93 (D) Otherwise fail to comply with the provisions of this chapter or any rule or94 regulation promulgated thereunder.95 (2) Any person who knowingly violates any provision of paragraph (1) of this subsection96 shall be guilty of a misdemeanor.97 (3) In addition to the commissioner's power to suspend, revoke, or cancel licenses,98 permits, or registrations issued pursuant to this chapter, upon a violation of paragraph (1)99 of this subsection or any rule or regulation promulgated under this chapter by a small100 business authorized to sell or distribute alcoholic beverages purchased from retail dealers101 under this chapter, the commissioner shall have the power to impose on such small102 business a fine not to exceed $500.00 for each violation and may suspend for up to 30103 days for each violation the authorization of such small business to sell or otherwise104 distribute alcoholic beverages purchased from retail dealers. For purposes of this105 paragraph, any such violation committed by an employee or agent of a small business106 shall be attributable to and deemed to be an act taken by such small business.107 (b) In addition to the commissioner's power to suspend, revoke, or cancel licenses, permits,108 or registrations issued pursuant to this title, upon a violation of subsection (c) of Code109 Section 3-16-5 or any rule or regulation promulgated under this chapter by a retail dealer,110 the commissioner shall have the power to impose on such retail dealer a fine not to exceed111 $500.00 for each violation. For purposes of this subsection, any such violation committed112 by an employee or agent of a retail dealer shall be attributable to and deemed to be an act113 taken by such retail dealer."114 H. B. 126 - 5 - 25 LC 55 0405 SECTION 2. 115 All laws and parts of laws in conflict with this Act are repealed.116 H. B. 126 - 6 -