Georgia 2025-2026 Regular Session

Georgia House Bill HB581 Compare Versions

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11 25 LC 55 9003
22 House Bill 581
33 By: Representatives Hagan of the 156
44 th
55 , Wiedower of the 121
66 st
77 , Cannon of the 172
88 nd
99 , Neal
1010 of the 79
1111 th
1212 , and Smith of the 18
1313 th
1414
1515 A BILL TO BE ENTITLED
1616 AN ACT
1717 To amend Title 3 of the Official Code of Georgia Annotated, relating to alcoholic beverages,
1818 1
1919 so as to provide for regulation of the manufacture, distribution, and sale of malt beverages;2
2020 to provide for definitions; to authorize manufacturers of malt beverages to sell or donate malt3
2121 beverages they produce, subject to certain limitations and conditions; to provide for direct4
2222 donation of malt beverages by brewers and brewpubs to certain charitable events; to provide5
2323 that sales for consumption off the premises are not subject to a daily maximum; to permit6
2424 small brewers to sell a limited quantity of malt beverages at wholesale; to provide for7
2525 remittance of excise and use taxes on donated malt beverages; to provide for a short title; to8
2626 provide for related matters; to repeal conflicting laws; and for other purposes.9
2727 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
2828 SECTION 1.11
2929 This Act shall be known and may be cited as the "Georgia Craft Brewery Innovation and12
3030 Survival Act."13
3131 H. B. 581
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3333 SECTION 2.
3434 14
3535 Title 3 of the Official Code of Georgia Annotated, relating to alcoholic beverages, is15
3636 amended by adding a new paragraph to Code Section 3-1-2, relating to definitions, to read16
3737 as follows:17
3838 "(20.1) 'Small brewer' means a brewer or brewpub whose sales of products to such
3939 18
4040 brewer's or brewpub's wholesaler licensed under this title, if any, do not exceed 1519
4141 percent of such wholesaler's total sales in the prior calendar year."20
4242 SECTION 3.21
4343 Said title is further amended by adding a new Code section to read as follows:22
4444 "3-5-6.23
4545 (a) As used in this Code section, the term:24
4646 (1) 'Charitable event permit holder' means a bona fide nonprofit civic organization that25
4747 has been issued a permit pursuant to Code Section 3-9-3 for the sale of alcoholic26
4848 beverages for consumption on the premises.27
4949 (2) 'Permitted charitable event' means an event for which a permit has been obtained by28
5050 a bona fide nonprofit civic organization pursuant to Code Section 3-9-3 authorizing such29
5151 organization to sell alcoholic beverages for consumption on the premises.30
5252 (b) A brewer or brewpub may directly donate malt beverages it manufactures to a31
5353 charitable event permit holder for a permitted charitable event, provided that:32
5454 (1) The amount of such donated malt beverages shall not exceed the amount necessary33
5555 for the permitted charitable event;34
5656 (2) Any donated malt beverages that are not used or consumed during the permitted35
5757 charitable event shall be returned to the brewer or brewpub within 24 hours of the event36
5858 closure or the expiration of the charitable event permit, whichever is later; and37
5959 H. B. 581
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6161 (3) The donated malt beverages shall be transported to and from the permitted charitable38
6262 event by the charitable event permit holder or the brewer or brewpub that made the39
6363 donation."40
6464 SECTION 4.41
6565 Said title is further amended by revising subsection (b) of Code Section 3-5-24.1, relating to42
6666 exception to three-tier system, transfer of liquids, sales at brewer's licensed premises, taxing,43
6767 regulatory authority, and conditions or limitations, as follows:44
6868 "(b) A limited exception to the provisions of this title providing a three-tier system for the45
6969 distribution and sale of malt beverages shall exist to the extent that the license to46
7070 manufacture malt beverages in this state shall include the right to sell malt beverages to47
7171 individuals on the brewer's licensed premises for personal use and not for resale, subject48
7272 to the following terms and conditions:49
7373 (1) The brewer may only make sales of malt beverages to an individual while the50
7474 individual is physically on the brewer's licensed premises where the brewer produces malt51
7575 beverages;52
7676 (2) The brewer may make sales of malt beverages the brewer produces at the brewer's53
7777 licensed premises where the individual is purchasing the malt beverages;54
7878 (3) As long as the brewer and all of the brewer's licensed premises are under common55
7979 ownership, the brewer may make sales of malt beverages the brewer produces at any56
8080 licensed premises of the brewer and subsequently transfers in compliance with the57
8181 limitations and reporting obligations of subsection (c) of this Code section to the brewer's58
8282 licensed premises for sale where the individual is purchasing the malt beverages;59
8383 (4) The brewer may only make sales of malt beverages for which the brewer is the sole60
8484 owner of the brand and brand label;61
8585 (5) Sales for consumption on the premises are not subject to a daily maximum amount;62
8686 H. B. 581
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8888 (6) Sales for consumption off the premises shall not exceed a maximum of 288 ounces63
8989 of malt beverages per individual per day are not subject to a daily maximum amount; and64
9090 (7) The maximum amount of malt beverages the brewer may sell pursuant to this65
9191 subsection (b) of this Code section in each calendar year shall be 6,000 barrels in the66
9292 aggregate among all brewer's licensed premises making such sales."67
9393 SECTION 5.68
9494 Said title is further amended by adding a new Code section to read as follows:69
9595 "3-5-24.2.70
9696 (a) Notwithstanding the provisions of Code Section 3-5-24.1 and as a limited exception71
9797 to the provisions of this title providing a three-tier system for the distribution and sale of72
9898 malt beverages, the license to manufacture malt beverages in this state shall include for73
9999 small brewers the right to:74
100100 (1) Sell per calendar year up to 3,000 barrels of malt beverages produced at the small75
101101 brewer's licensed premises at wholesale to retailers licensed in this state that are located76
102102 within a 100 mile radius of the small brewer's licensed premises;77
103103 (2) Sell, deliver, and ship its malt beverages to other licensed brewers and brewpubs; and78
104104 (3) Acquire and receive deliveries and shipments of such malt beverages made by other79
105105 licensed brewers and brewpubs.80
106106 (b) Any small brewer that sells malt beverages pursuant to this Code section shall utilize81
107107 an electronic accounting software that is capable of tracking and remitting state and local82
108108 taxes imposed in connection with such sales.83
109109 (c) The commissioner shall promulgate and enforce such rules and regulations as he or she84
110110 may deem reasonable and necessary to effectuate the provisions of this Code section."85
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113113 SECTION 6.
114114 86
115115 Said title is further amended by revising Code Section 3-5-27, relating to malt beverages87
116116 acquired by retail dealers from persons other than licensed wholesale dealers declared88
117117 contraband, as follows:89
118118 "3-5-27.90
119119 Except as otherwise provided in this chapter, any
120120 Any malt beverage possessed, sold, or91
121121 offered for sale by a retail dealer which was purchased or otherwise acquired from any92
122122 person other than a wholesale dealer authorized to do business under this chapter is93
123123 declared to be contraband and shall be seized by the commissioner or the appropriate local94
124124 authorities and disposed of by the commissioner in the manner provided in this title."95
125125 SECTION 7.96
126126 Said title is further amended by revising Code Section 3-5-81, relating to payment of tax by97
127127 wholesale dealers generally, time of payment, and reports by dealers as to quantities of98
128128 beverages sold, as follows:99
129129 "3-5-81.100
130130 (a) The excise taxes provided for in this part shall be imposed upon and shall be paid by101
131131 the licensed wholesale dealer in malt beverages; provided, however, that such taxes shall102
132132 be imposed upon and shall be paid by the licensed brewer or brewpub for malt beverages103
133133 served or sold by the brewer directly to the public pursuant to Code Section 3-5-24.1 or104
134134 donated by the brewer or brewpub pursuant to Code Section 3-5-6.105
135135 (b) The taxes shall be paid on or before the tenth day of the month following the calendar106
136136 month in which the beverages are sold, donated, or disposed of within the particular107
137137 municipality or county.108
138138 (c) Each licensee responsible for the payment of the excise tax shall file a report itemizing109
139139 for the preceding calendar month the exact quantities of malt beverages, by size and type110
140140 of container, sold or donated during the month within each municipality or county. The111
141141 H. B. 581
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143143 licensee shall file the report with each municipality or county wherein the beverages are
144144 112
145145 sold or donated
146146 by the licensee.113
147147 (d) The licensee shall remit to the municipality or county on the tenth day of the month114
148148 following the calendar month in which the sales or donations were made the tax imposed115
149149 by the municipality or county."116
150150 SECTION 8.117
151151 All laws and parts of laws in conflict with this Act are repealed.118
152152 H. B. 581
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