25 LC 55 9003
House Bill 581
By: Representatives Hagan of the 156
th
, Wiedower of the 121
st
, Cannon of the 172
nd
, Neal
of the 79
th
, and Smith of the 18
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 regulation of the manufacture, distribution, and sale of malt beverages;2
to provide for definitions; to authorize manufacturers of malt beverages to sell or donate malt3
beverages they produce, subject to certain limitations and conditions; to provide for direct4
donation of malt beverages by brewers and brewpubs to certain charitable events; to provide5
that sales for consumption off the premises are not subject to a daily maximum; to permit6
small brewers to sell a limited quantity of malt beverages at wholesale; to provide for7
remittance of excise and use taxes on donated malt beverages; to provide for a short title; to8
provide for related matters; to repeal conflicting laws; and for other purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
This Act shall be known and may be cited as the "Georgia Craft Brewery Innovation and12
Survival Act."13
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SECTION 2.
14
Title 3 of the Official Code of Georgia Annotated, relating to alcoholic beverages, is15
amended by adding a new paragraph to Code Section 3-1-2, relating to definitions, to read16
as follows:17
"(20.1) 'Small brewer' means a brewer or brewpub whose sales of products to such
18
brewer's or brewpub's wholesaler licensed under this title, if any, do not exceed 1519
percent of such wholesaler's total sales in the prior calendar year."20
SECTION 3.21
Said title is further amended by adding a new Code section to read as follows:22
"3-5-6.23
(a) As used in this Code section, the term:24
(1) 'Charitable event permit holder' means a bona fide nonprofit civic organization that25
has been issued a permit pursuant to Code Section 3-9-3 for the sale of alcoholic26
beverages for consumption on the premises.27
(2) 'Permitted charitable event' means an event for which a permit has been obtained by28
a bona fide nonprofit civic organization pursuant to Code Section 3-9-3 authorizing such29
organization to sell alcoholic beverages for consumption on the premises.30
(b) A brewer or brewpub may directly donate malt beverages it manufactures to a31
charitable event permit holder for a permitted charitable event, provided that:32
(1) The amount of such donated malt beverages shall not exceed the amount necessary33
for the permitted charitable event;34
(2) Any donated malt beverages that are not used or consumed during the permitted35
charitable event shall be returned to the brewer or brewpub within 24 hours of the event36
closure or the expiration of the charitable event permit, whichever is later; and37
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(3) The donated malt beverages shall be transported to and from the permitted charitable38
event by the charitable event permit holder or the brewer or brewpub that made the39
donation."40
SECTION 4.41
Said title is further amended by revising subsection (b) of Code Section 3-5-24.1, relating to42
exception to three-tier system, transfer of liquids, sales at brewer's licensed premises, taxing,43
regulatory authority, and conditions or limitations, as follows:44
"(b) A limited exception to the provisions of this title providing a three-tier system for the45
distribution and sale of malt beverages shall exist to the extent that the license to46
manufacture malt beverages in this state shall include the right to sell malt beverages to47
individuals on the brewer's licensed premises for personal use and not for resale, subject48
to the following terms and conditions:49
(1) The brewer may only make sales of malt beverages to an individual while the50
individual is physically on the brewer's licensed premises where the brewer produces malt51
beverages;52
(2) The brewer may make sales of malt beverages the brewer produces at the brewer's53
licensed premises where the individual is purchasing the malt beverages;54
(3) As long as the brewer and all of the brewer's licensed premises are under common55
ownership, the brewer may make sales of malt beverages the brewer produces at any56
licensed premises of the brewer and subsequently transfers in compliance with the57
limitations and reporting obligations of subsection (c) of this Code section to the brewer's58
licensed premises for sale where the individual is purchasing the malt beverages;59
(4) The brewer may only make sales of malt beverages for which the brewer is the sole60
owner of the brand and brand label;61
(5) Sales for consumption on the premises are not subject to a daily maximum amount;62
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(6) Sales for consumption off the premises shall not exceed a maximum of 288 ounces63
of malt beverages per individual per day are not subject to a daily maximum amount; and64
(7) The maximum amount of malt beverages the brewer may sell pursuant to this65
subsection (b) of this Code section in each calendar year shall be 6,000 barrels in the66
aggregate among all brewer's licensed premises making such sales."67
SECTION 5.68
Said title is further amended by adding a new Code section to read as follows:69
"3-5-24.2.70
(a) Notwithstanding the provisions of Code Section 3-5-24.1 and as a limited exception71
to the provisions of this title providing a three-tier system for the distribution and sale of72
malt beverages, the license to manufacture malt beverages in this state shall include for73
small brewers the right to:74
(1) Sell per calendar year up to 3,000 barrels of malt beverages produced at the small75
brewer's licensed premises at wholesale to retailers licensed in this state that are located76
within a 100 mile radius of the small brewer's licensed premises;77
(2) Sell, deliver, and ship its malt beverages to other licensed brewers and brewpubs; and78
(3) Acquire and receive deliveries and shipments of such malt beverages made by other79
licensed brewers and brewpubs.80
(b) Any small brewer that sells malt beverages pursuant to this Code section shall utilize81
an electronic accounting software that is capable of tracking and remitting state and local82
taxes imposed in connection with such sales.83
(c) The commissioner shall promulgate and enforce such rules and regulations as he or she84
may deem reasonable and necessary to effectuate the provisions of this Code section."85
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SECTION 6.
86
Said title is further amended by revising Code Section 3-5-27, relating to malt beverages87
acquired by retail dealers from persons other than licensed wholesale dealers declared88
contraband, as follows:89
"3-5-27.90
Except as otherwise provided in this chapter, any
Any malt beverage possessed, sold, or91
offered for sale by a retail dealer which was purchased or otherwise acquired from any92
person other than a wholesale dealer authorized to do business under this chapter is93
declared to be contraband and shall be seized by the commissioner or the appropriate local94
authorities and disposed of by the commissioner in the manner provided in this title."95
SECTION 7.96
Said title is further amended by revising Code Section 3-5-81, relating to payment of tax by97
wholesale dealers generally, time of payment, and reports by dealers as to quantities of98
beverages sold, as follows:99
"3-5-81.100
(a) The excise taxes provided for in this part shall be imposed upon and shall be paid by101
the licensed wholesale dealer in malt beverages; provided, however, that such taxes shall102
be imposed upon and shall be paid by the licensed brewer or brewpub for malt beverages103
served or sold by the brewer directly to the public pursuant to Code Section 3-5-24.1 or104
donated by the brewer or brewpub pursuant to Code Section 3-5-6.105
(b) The taxes shall be paid on or before the tenth day of the month following the calendar106
month in which the beverages are sold, donated, or disposed of within the particular107
municipality or county.108
(c) Each licensee responsible for the payment of the excise tax shall file a report itemizing109
for the preceding calendar month the exact quantities of malt beverages, by size and type110
of container, sold or donated during the month within each municipality or county. The111
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licensee shall file the report with each municipality or county wherein the beverages are
112
sold or donated
by the licensee.113
(d) The licensee shall remit to the municipality or county on the tenth day of the month114
following the calendar month in which the sales or donations were made the tax imposed115
by the municipality or county."116
SECTION 8.117
All laws and parts of laws in conflict with this Act are repealed.118
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