Alabama Senate Bill SB321

Alabama 2023 Regular Session

• Introduced: 5/11/23
• Refer: 5/11/23

Caption

Relating to alcoholic beverages; to amend Sections 28-3-1, 28-3A-3, 28-3A-21, and 28-3A-23, Code of Alabama 1975 and add Sections 28-3-208, 28-3A-9.1, and 28-3A-17.2 to the Code of Alabama 1975; to define a new category of low-alcohol content liquor beverages called mixed spirit beverages; to levy taxes upon the distribution of these beverages; to provide for licensure of retailers of mixed spirit beverages and set a fee for licensure; to amend Sections 28-10-4, 28-10-5 and 28-10-6, Code of Alabama 1975, to provide further for the responsible vendors program; and to make nonsubstantive, technical revisions to update the existing code language to current style.

Impact

With the enactment of SB321, retailers will be required to obtain specific licenses to sell mixed spirit beverages, while wholesalers will be mandated to hold a valid wholesaler license. This bill also plans to levy an excise or privilege tax on the distribution of mixed spirit beverages. These changes aim to clarify the regulatory framework surrounding the sale of these beverages, improving compliance and revenue generation for the state.

Summary

Senate Bill 321 (SB321) introduces a new category of alcoholic beverages defined as 'mixed spirit beverages' that contain no more than 12.5% alcohol by volume. This new category addresses the absence of specific provisions in existing law regarding the wholesale, retail sale, and taxation of low-alcohol content beverages. The bill mandates that mixed spirit beverages, unless distributed by the Alcoholic Beverage Control Board, must be both distributed through licensed wholesalers and sold to licensed retailers for on-premises and off-premises consumption.

Contention

The bill addresses various aspects of the responsible vendor program, which requires retailers to provide employee training in recognizing underage customers and managing intoxicated individuals. This will enhance the enforcement of responsible drinking practices. Nevertheless, there may be contention surrounding the impacts of these regulations on small retailers who may face additional fees and compliance challenges in the process of adapting to these new licensing requirements.