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SB217 INTRODUCED
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SB217
G39Q762-1
By Senators Singleton, Albritton, Waggoner, Jones, Smitherman,
Stewart, Coleman-Madison, Sessions
RFD: Tourism
First Read: 27-Jan-26
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G39Q762-1 01/26/2026 JC (L)lg 2025-3397
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First Read: 27-Jan-26
SYNOPSIS:
Existing law makes no specific provisions
regarding the retail sale, wholesale, or tax on the
sale of low-alcohol by volume content beverages made
from liquor. These beverages are regulated like liquor.
They are not available for distribution through beer
and table wine wholesalers and are only sold in ABC
stores.
This bill would define a new category of ready
to drink mixed liquor beverages containing no more than
seven percent alcohol by volume, called "mixed spirit
beverages."
This bill would institute a licensing structure
in Alabama for mixed spirit beverages, which would
require all mixed spirit beverages, other than those
sold in Alcoholic Beverage Control Board stores, to be
distributed through licensed wholesalers to licensed
retailers for on-premises and off-premises consumption.
This bill would further impose penalties on
retailers who sell mixed spirit beverages to
individuals who are under 21 years of age.
This bill would provide for the levy of a
privilege or excise tax on mixed spirit beverages.
This bill would require suppliers of mixed
spirit beverages to designate exclusive sales
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spirit beverages to designate exclusive sales
territories for each brand and enter into a
distribution agreement with a licensed wholesaler for
each sales territory.
This bill would also set requirements for
distribution agreements between suppliers and wholesale
distributors of mixed spirit beverages for no-cause
termination or nonrenewal of a distribution agreement.
A BILL
TO BE ENTITLED
AN ACT
Relating to alcoholic beverages; to amend Sections
28-3-1, 28-3A-3, and 28-3A-23, Code of Alabama 1975; to define
a new category of low-alcohol content liquor beverages called
mixed spirit beverages; to add Section 28-3-208 to the Code of
Alabama 1975, to levy an excise tax upon the distribution of
mixed spirit beverages; to add Section 28-1-9 to the Code of
Alabama 1975, to regulate the display by retailers of mixed
spirit and other alcoholic beverages; to add Section 28-3A-9.1
to the Code of Alabama 1975, to provide a license for
wholesalers of mixed spirit beverages; to add Section
28-3A-17.3 to the Code of Alabama 1975, to provide licenses
and a requirement for retailers of mixed spirit beverages; to
amend Section 28-3A-21 as last amended by Acts 2025-405 and
2025-413, 2025 Regular Session, to set fees for the licenses;
to amend Sections 28-3A-1.5, 28-3A-11, 28-3A-12, 28-3A-13,
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to amend Sections 28-3A-1.5, 28-3A-11, 28-3A-12, 28-3A-13,
28-3A-17.2, 28-3A-18, 28-3A-19, 28-3A-19.1, 28-3A-20, Code of
Alabama 1975, Section 1 of Act 2025-413, 2025 Regular Session,
now appearing as Section 28-3A-6.5, Code of Alabama 1975,
Section 3 of Act 2025-405, 2025 Regular Session, now appearing
as Section 28-3A-19.2, Code of Alabama 1975, and Section 2 of
Act 2025-405, 2025 Regular Session, now appearing as
28-3A-20.5, Code of Alabama 1975, to make conforming changes;
to add Section 28-3A-27 to the Code of Alabama 1975, to impose
penalties on retailers who sell mixed spirit beverages to
individuals under 21 years of age; and to add Chapter 8B to
Title 28 of the Code of Alabama 1975, to require licensed
importers, manufacturers, and suppliers of mixed spirit
beverages to enter into exclusive sales territory distribution
agreements with wholesalers.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 28-1-9 is added to the Code of
Alabama 1975, to read as follows:
§28-1-9
(a) No alcoholic beverage products shall be sold or
distributed within the state without first having received
approval of the label thereon by the board.
(b) No alcoholic beverage shall be marketed, displayed,
labeled, or advertised in a way calculated to do either of the
following:
(1) Appeal to minors.
(2) Include statements, artwork, or designs that could
easily mislead an individual to believe that the product is
not an alcoholic beverage.
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not an alcoholic beverage.
(c) No label shall be approved by the board which would
violate any rule of the board which governs general
advertising.
(d) Alcoholic beverages for retail sale shall be
displayed in such a way that they are separated from
nonalcoholic beverages, dual-branded beverages, or beverages
intended for children.
(e) Any licensed premises containing less than 500
square feet in capacity in which it is unfeasible to separate
the display of mixed spirit beverages from nonalcoholic
beverages shall prominently post signage that states: "The
products in this area contain alcohol and are not permitted
for sale to anyone under 21 years of age."
Section 2. Section 28-3-1, Code of Alabama 1975, is
amended to read as follows:
"§28-3-1
As used in this title, the following words shall have
the following meanings unless the context clearly indicates
otherwise:
(1) ALCOHOLIC BEVERAGES. Any alcoholic, spirituous,
vinous, fermented, or other alcoholic beverage, or combination
of liquors and mixed liquor, a part of which is spirituous,
vinous, fermented, or otherwise alcoholic, and all drinks or
drinkable liquids, preparations , or mixtures intended for
beverage purposes, which contain one-half of one percent or
more of alcohol by volume , and shall include . The term
includes liquor, beer, and wine, and mixed spirit beverages .
(2) ASSOCIATION. A partnership, limited partnership, or
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(2) ASSOCIATION. A partnership, limited partnership, or
any form of unincorporated enterprise owned by two or more
persons.
(3) BEER , or MALT OR BREWED BEVERAGES. Any beer, lager
beer, ale, porter, malt or brewed beverage, or similar
fermented beverage containing one-half of one percent or more
of alcohol by volume and not in excess of thirteen and
nine-tenths 13.9 percent alcohol by volume, brewed or produced
from malt, wholly or in part, or from rice, grain of any kind,
bran, glucose, sugar, or molasses. A beer or malt or brewed
beverage may incorporate honey, fruit, fruit juice, fruit
concentrate, herbs, spices, or other flavorings during the
fermentation process. The term does not include any product
defined as liquor, table wine, or wine, or mixed spirit
beverages .
(4) BOARD. The Alabama Alcoholic Beverage Control
Board.
(5) BRANDY. All beverages that are an alcoholic
distillate from the fermented juice, mash, or wine of fruit,
or from the residue thereof, produced in such manner that the
distillate possesses the taste, aroma, and characteristics
generally attributed to the beverage, as bottled at not less
than 80 degree proof.
(6) CARTON. The package or container or containers in
which alcoholic beverages are originally packaged for shipment
to market by the manufacturer or its designated
representatives or the importer.
(7) CIDER. A fermented alcoholic beverage made from
apple juice and containing not more than 8.5 percent alcohol
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apple juice and containing not more than 8.5 percent alcohol
by volume.
(8) CLUB.
a. Class I. A corporation or association organized or
formed in good faith by authority of law and which must have
at least 150 paid-up members. It must be the owner, lessee, or
occupant of an establishment operated solely for the objects
of a national, social, patriotic, political, or athletic
nature or the like, but not for pecuniary gain, and the
property , as well as the advantages of , which , belong to all
the members and which maintains an establishment provided with
special space and accommodations where, in consideration of
payment, food with or without lodging is habitually served.
The club shall hold regular meetings, continue its business
through officers regularly elected, admit members by written
application, investigation, and ballot, and charge and collect
dues from elected members.
b. Class II. A corporation or association organized or
formed in good faith by authority of law and which must have
at least 100 paid-up members. It must be the owner, lessee, or
occupant of an establishment operated solely for the objects
of a national, social, patriotic, political, or athletic
nature or the like. The club shall hold regular meetings,
continue its business through officers regularly elected,
admit members by written application, investigation, and
ballot, and charge and collect dues from elected members.
(9) CONTAINER. The single bottle, can, keg, bag, or
other receptacle, but not a carton, in which alcoholic
beverages are originally packaged for the market by the
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beverages are originally packaged for the market by the
manufacturer or importer and from which the alcoholic beverage
is consumed by or dispensed to the public.
(10) CORPORATION. A corporation or joint stock
association organized under the laws of this state, the United
States, or any other state, territory , or foreign country, or
dependency.
(11) DELIVERY. The transportation of alcoholic
beverages directly from a retail licensee of the board to an
individual, pursuant to Section 28-1-4 and Section 28-3A-13.1.
(12) DELIVERY SERVICE LICENSE. A license issued by the
Alabama Alcoholic Beverage Control Board board in accordance
with Section 28-3A-13.1 that authorizes the licensee, the
licensee's employees, or independent contractors under a
contractual or business arrangement with the licensee to
transport and deliver alcoholic beverages.
(13) DRY COUNTY. Any county which by a majority of
those voting voted in the negative in an election heretofore
held under the applicable statutes at the time of the election
or may hereafter vote in the negative in an election or
special method referendum hereafter held in accordance with
Chapter 2, or held in accordance with the provisions of any
act hereafter enacted permitting such election.
(14) DRY MUNICIPALITY. Any municipality within a wet
county which has, by its governing body or by a majority of
those voting in a municipal election heretofore held in
accordance with the provisions of Section 28-2-22, or in a
municipal option election heretofore or hereafter held in
accordance with the provisions of Act 84-408, Acts of Alabama
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accordance with the provisions of Act 84-408, Acts of Alabama
1984, appearing as Chapter 2A, or any act hereafter enacted
permitting municipal option election, voted to exclude the
sale of alcoholic beverages within the corporate limits of the
municipality.
(15) EMPLOYEE. An individual to whom an employer is
required to issue a W-2 tax form under federal law.
(16) GENERAL WELFARE PURPOSES. All of the following:
a. The administration of public assistance as set out
in Sections 38-2-5 and 38-4-1.
b. Services, including supplementation and
supplementary services under the federal Social Security Act,
to or on behalf of persons to whom public assistance may be
given under Sections 38-2-5 and 38-4-1.
c. Service to and on behalf of dependent, neglected, or
delinquent children.
d. Investigative and referral services to and on behalf
of needy persons.
(17) HEARING COMMISSION. A body appointed by the board
to hear and decide all contested license applications and all
disciplinary charges against any licensee for violation of
this title or the rules of the board.
(18) HOTEL. A building or buildings held out to the
public for housing accommodations of travelers or transients,
and shall include a motel, but shall not include a rooming
house or boarding house.
(19) IMPORTER. Any person, association, or corporation
engaged in importing alcoholic beverages, liquor, wine, or
beer, or mixed spirit beverages manufactured outside of the
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beer, or mixed spirit beverages manufactured outside of the
United States of America into this state or for sale or
distribution in this state, or to the board or to a licensee
of the board.
(20) INDEPENDENT CONTRACTOR. An individual to whom an
employer is required to issue a 1099 tax form under federal
law.
(21) KEG. A pressurized factory sealed container with a
capacity equal to or greater than five U.S. gallons, from
which beer is withdrawn by means of an external tap.
(22) LIQUOR. Any alcoholic, spirituous, vinous,
fermented, or other alcoholic beverage, or combination of
liquors and mixed liquor, a part of which is spirituous,
fermented, vinous, or otherwise alcoholic, and all drinks or
drinkable liquids, preparations, or mixtures intended for
beverage purposes, which contain one-half of one percent or
more of alcohol by volume, except beer , and table wine , and
mixed spirit beverages .
(23) LIQUOR STORE. A liquor store operated by the
board, where alcoholic beverages other than beer are
authorized to be sold in unopened containers.
(24) MANUFACTURER. Any person, association, or
corporation engaged in the producing, bottling, manufacturing,
distilling, fermenting, brewing, rectifying, or compounding of
alcoholic beverages, liquor, beer, or wine, or mixed spirit
beverages in this state or for sale or distribution in this
state or to the board or to a licensee of the board.
(25) MEAD. An alcoholic beverage produced by fermenting
a solution of honey and water with grain mash and containing
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a solution of honey and water with grain mash and containing
not more than 18 percent alcohol by volume.
(26) MEAL. A diversified selection of food some of
which is not susceptible of being consumed in the absence of
at least some articles of tableware and which cannot be
conveniently consumed while one is standing or walking about.
(27) MINOR. Any person under 21 years of age; provided,
however, in the event Section 28-1-5 , shall be is repealed or
otherwise shall be no longer in effect, thereafter the
provisions of Section 26-1-1, shall govern.
(28) MIXED SPIRIT BEVERAGES. A single-serve beverage
containing liquor, packaged in a can or other container
approved by the board no larger than 16 ounces, and which
contains no more than 7 percent alcohol by volume. The term
does not include any beverage containing liquor over 16 ounces
in size or of more than 7 percent alcohol by volume.
(29) MUNICIPALITY. Any incorporated city or town of
this state to include its police jurisdiction.
(29)(30) PERSON. Every natural person, association, or
corporation. Whenever used in a clause prescribing or imposing
a fine or imprisonment, or both, such the term as applied to
an association shall mean the partners or members thereof and
as applied to a corporation shall mean the officers thereof,
except as to incorporated clubs the term person shall mean
such means an individual or individuals who, under the bylaws
of such clubs, shall have jurisdiction over the possession and
sale of liquor therein.
(30)(31) POPULATION. The population according to the
last preceding or any subsequent decennial census of the
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last preceding or any subsequent decennial census of the
United States, except where a municipality is incorporated
subsequent to the last census, in which event, its population
until the next decennial census shall be the population of the
municipality as determined by the judge of probate of the
county as the official population on the date of its
incorporation.
(31)(32) RESTAURANT. A reputable place licensed as a
restaurant, operated by a responsible person of good
reputation , and habitually and principally used for the
purpose of preparing and serving meals for the public to
consume on the premises.
(32)(33) RETAILER. Any person licensed by the board to
engage in the retail sale of any alcoholic beverages to the
consumer.
(33)(34) SALE or SELL. Any transfer of liquor, wine , or
beer, or mixed spirit beverages for a consideration, and any
gift in connection with, or as a part of, a transfer of
property other than liquor, wine, or beer, or mixed spirit
beverages for a consideration.
(34)(35) SELLING PRICE. The total marked-up price of
spirituous or vinous liquors sold by the board, exclusive of
taxes levied thereon.
(35)(36) TABLE WINE. Except as otherwise provided in
this subdivision, any wine containing not more than 24 percent
alcohol by volume. Table wine does not include any wine
containing more than sixteen and one-half 16.5 percent alcohol
by volume that is made with herbs or flavors, except vermouth,
or is an imitation or other than standard wine. Table wine is
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or is an imitation or other than standard wine. Table wine is
not liquor, spirituous, or vinous.
(36)(37) UNOPENED CONTAINER. A container containing
alcoholic beverages, which has not been opened or unsealed
subsequent to filling and sealing by the manufacturer or
importer.
(37)(38) WET COUNTY. Any county which by a majority of
those voting voted in the affirmative in an election
heretofore held in accordance with the statutes applicable at
the time of the election or may hereafter vote in the
affirmative in an election or special method referendum held
in accordance with Chapter 2, or other statutes applicable at
the time of the election.
(38)(39) WET MUNICIPALITY. Any municipality in a dry
county which by a majority of those voting voted in the
affirmative in a municipal option election heretofore or
hereafter held in accordance with the provisions of Act
84-408, Acts of Alabama 1984, appearing as Chapter 2A of this
title, as amended, or any act hereafter enacted permitting
municipal option election, or any municipality whichthat
became wet by vote of the governing body or by the voters of
the municipality heretofore or hereafter held under the
special method referendum provisions of Section 28-2-22, or as
hereafter provided, where the county has become dry subsequent
to the elected wet status of the municipality.
(39)(40) WHOLESALER. Any person licensed by the board
to engage in the sale and distribution of table wine , and
beer, or mixed spirit beverages, or either any combination
thereof of them , within this state, at wholesale only, to be
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thereof of them , within this state, at wholesale only, to be
sold by export or to retail licensees or other wholesale
licensees or others within this state lawfully authorized to
sell table wine , and beer, or mixed spirit beverages, or
either any combination thereof of them , for the purpose of
resale only.
(40)(41) WINE. All beverages made from the fermentation
of fruits, berries, or grapes, with or without added spirits,
and produced in accordance with the laws and regulations of
the United States, containing not more than 24 percent alcohol
by volume, and shall include all sparkling wines, carbonated
wines, special natural wines, rectified wines, vermouths,
vinous beverages, vinous liquors, and like products, including
restored or unrestored pure condensed juice."
Section 3. Section 28-3-208 is added to the Code of
Alabama 1975, to read as follows:
§28-3-208
(a) There is levied, in addition to the license taxes
provided for by this chapter and municipal and county license
taxes, a privilege or excise tax measured by and graduated in
accordance with the volume of sales of mixed spirit beverages,
which shall be an amount equal to two and five-tenths cents
($.025) per ounce or fractional part thereof.
(b)(1)a. The tax levied by subsection (a) shall be
added to the sales price of all mixed spirit beverages and
collected from the purchaser. The tax shall be collected in
the first instance from the wholesaler where mixed spirit
beverages are sold or handled by wholesale licensees.
b. It shall be unlawful for any person who is required
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b. It shall be unlawful for any person who is required
to pay the tax in the first instance to fail or refuse to add
to the sales price and collect from the purchaser the required
amount of tax, it being the intent and purpose of this section
that the tax levied is in fact a levy on the consumer. The
person who pays the tax in the first instance is acting as an
agent of the state for the collection and payment of the tax
and as such may not collect a tax on mixed spirit beverages
for any other level of government.
(2) The tax levied by subsection (a) shall be collected
by a monthly return as follows:
a. The wholesaler shall file a monthly return with the
board no later than the 15th day of the second month following
the month of receipt of mixed spirit beverages by the
wholesaler on a form prescribed by the board showing receipts
by the wholesaler from manufacturers, importers, or other
wholesaler licensees during the month of receipt and the tax
due thereon at the rate of two and five-tenths cents ($.025)
per ounce of mixed spirit beverages sold to the wholesaler.
The tax due at this rate shall be remitted to the board along
with the return.
b. A wholesaler shall file a monthly return with the
county or municipality within which the mixed spirit beverage
is sold at retail not later than the 15th day of each month,
showing sales by wholesalers during the preceding month and
the tax due thereon at the rate of two thousandths cents
($.002) per ounce sold. The tax due at this rate shall be
remitted to the county or municipality along with the return
and shall be distributed as provided in Section 28-3-190.
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and shall be distributed as provided in Section 28-3-190.
(3) The board and the governing body of each county and
municipality served by the wholesaler shall have the authority
to examine the books and records of the wholesaler who sells,
stores, or receives for the purpose of distribution any mixed
spirit beverages, to determine the accuracy of any return
required to be filed with it.
(c) The proceeds of the tax levied by subsection (a)
and remitted pursuant to subsection (b) shall be paid and
distributed as follows:
(1) Fifty percent of the mixed spirit beverage tax
shall be deposited in the State General Fund.
(2) Thirty-three percent of the mixed spirit beverage
tax shall be retained by the board for regulatory,
enforcement, and administrative purposes.
(3) The remainder of the mixed spirit beverage tax
shall be distributed to the county or municipality where the
mixed spirit beverages were sold and shall be distributed as
provided in Section 28-3-190.
(d) The tax levied under this section is exclusive and
shall be in lieu of all other and additional taxes and
licenses of the state, county, or municipality, imposed on or
measured by the sale or volume of sale of mixed spirit
beverages, provided that nothing contained in this section
shall be construed to exempt the retail sale of mixed spirit
beverages from the levy of tax on general retail sales by the
state, county, or municipality in the nature of, or in lieu
of, a general sales tax.
(e) The tax levied by subsection (a) shall not be
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(e) The tax levied by subsection (a) shall not be
imposed upon the sale, trade, or barter of mixed spirit
beverages by one licensed wholesaler to another wholesaler
licensed to sell and handle mixed spirit beverages in this
state, which transaction is made exempt from the tax, provided
the board may require written reporting of any such
transaction in the form as the board may prescribe pursuant to
paragraph (b)(2)a.
(f) Each county and municipality may fix a reasonable
privilege or license fee on retail, importer, and wholesale
licensees, for the purpose of covering the cost of
administration with respect to the sale of mixed spirit
beverage, but not to generate revenue. A county or
municipality may not levy a license or privilege tax or other
charge for the privilege of doing business as a mixed spirit
beverage wholesaler, importer, or retailer which shall exceed
one-half the amount of the state license fee.
(g) Nothing in this section shall be construed to
restrict a municipality's authority to issue a business
license pursuant to Article 2 of Chapter 51 of Title 11 on the
privilege of doing business as a mixed spirit beverage
wholesaler, importer, or retailer. Any business license issued
pursuant to the foregoing article on the privilege of doing
business as a mixed spirit beverage wholesaler, importer, or
retailer shall not be measured by the volume of sale for mixed
spirit beverages.
Section 4. Section 28-3A-3 Code of Alabama 1975, is
amended to read as follows:
"§28-3A-3
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"§28-3A-3
(a)(1) Subject to this chapter and rules adopted
thereunder, the board may issue and renew licenses to
reputable and responsible persons for the following purposes:
(1)a. To manufacture, brew, distill, ferment, rectify,
bottle , or compound any or all alcoholic beverages within or
for sale within this state.
(2)b. To import any or all alcoholic beverages
manufactured outside the United States into this state or for
sale or distribution within this state.
(3)c. To distribute, wholesale, or act as jobber for
the sale of liquor.
(4)d. To distribute, wholesale, or act as jobber for
the sale of table wine and beer or either of them , beer, or
mixed spirit beverages alone or in any combination to licensed
retailers within the state and others within this state
lawfully authorized to sell table wine , or beer, or mixed
spirit beverages .
(5)e. To store or warehouse any or all alcoholic
beverages for transshipment inside and outside the state.
(6)f. To sell and dispense at retail in a lounge ,
liquor and other alcoholic beverages for on-premises
consumption .
(7)g. To sell and dispense at retail in an
establishment habitually and principally used for the purpose
of providing meals for the public, liquor and other in a
restaurant alcoholic beverages for on-premises consumption.
(8)h. To sell liquor and wine at retail for
off-premises consumption.
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off-premises consumption.
(9)i. To sell and dispense at retail in a club , liquor
and other alcoholic beverages for on-premises consumption.
(10)j. To sell table wine at retail for off-premises
consumption.
(11)k. To sell table wine at retail for on-premises and
off-premises consumption.
(12)l. To sell beer at retail for on-premises and
off-premises consumption.
(13)m. To sell beer at retail for off-premises
consumption.
n. To sell mixed spirit beverages at retail for
on-premises and off-premises consumption.
o. To sell mixed spirit beverages at retail for
off-premises consumption.
(14)p. To sell liquor and other alcoholic beverages at
retail by a retail common carrier with a passenger capacity of
at least 10 people.
(15)q. To sell any or all alcoholic beverages at retail
under a special license issued conditioned upon terms and
conditions and for the period of time prescribed by the board.
(16)r. To sell any or all alcoholic beverages at retail
under a special event retail license issued for three days
upon the terms and conditions prescribed by the board.
(2) Provided, however, that the Notwithstanding
subdivision (1), licenses authorized under subdivision (1) may
not be issued in dry counties where traffic in alcoholic
beverages is not authorized by law , therein except a wine
manufacturer license may be issued in a dry county pursuant to
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manufacturer license may be issued in a dry county pursuant to
Section 28-7-10.1. Provided the The restriction of this
paragraph subdivision shall not apply to the issuance of a
renewal of a license under subdivisions (1), (2), (3), (4),
and (5) paragraphs (1)a. through (1)e. where the county or
municipality was wet when the initial license was issued and
the county or municipality subsequently votes dry; however, no
importer or wholesaler licensee may sell or distribute
alcoholic beverages within a dry county, except in a wet
municipality therein, or within a dry municipality.
(b) The board is granted discretionary powers in acting
upon license applications under the provisions of this
chapter.
(c) Licenses issued under this chapter, unless revoked
or suspended in the manner provided in this chapter, shall be
valid for the license year which shall begin on the first day
of October 1 of each year, unless otherwise established by
this chapter or by the board. Licenses may be issued at any
time during the year."
Section 5. Sections 28-3A-9.1 and 28-3A-17.3 are added
to the Code of Alabama 1975, to read as follows:
§28-3A-9.1
(a) Upon payment of the applicable fee for a mixed
spirit beverage wholesaler license as established in Section
28-3A-21 and the applicant's compliance with this chapter and
rules adopted pursuant to this chapter, the board shall issue
to a wholesaler a mixed spirit beverage wholesaler license.
(b) A mixed spirit beverage wholesaler license shall
authorize the licensee to do all of the following:
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authorize the licensee to do all of the following:
(1) Import and receive shipments of mixed spirit
beverages from outside the state from licensed manufacturers.
(2) Purchase mixed spirit beverages from licensed
manufacturers or other licensed wholesalers within the state.
(3) Sell at wholesale or distribute mixed spirit
beverages to all licensees or other persons within this state
lawfully authorized to sell mixed spirit beverages within the
state.
(4) Export mixed spirit beverages from the state.
(c) Sales to all authorized persons shall be in
original packages or containers as approved by the board and
prepared for the market by the manufacturer.
(d)(1) Except as provided in this section, no person
shall sell at wholesale or distribute mixed spirit beverages
within this state unless the person is issued by the board a
wholesaler license to distribute mixed spirit beverages.
(2) Notwithstanding this section, Section 28-3A-17.3,
or Chapter 8B, the board shall retain the authority to act as
a wholesaler of mixed spirit beverages, provided the board, as
a wholesaler, shall only distribute mixed spirit beverages to
state liquor stores.
§28-3A-17.3
(a) Upon payment of the limited mixed spirit beverage
expanded retail license fee as established in Section 28-3A-21
and the applicant's compliance with this chapter and the rules
adopted thereunder, the board shall issue a limited mixed
spirit beverage expanded retail license to any person who
holds and possesses any of the following:
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holds and possesses any of the following:
(1) A valid retail table wine license for on-premises
and off-premises consumption as provided for in Section
28-3A-14.
(2) A valid retail table wine license for off-premises
consumption as provided for in Section 28-3A-15.
(3) A valid retail beer license for on-premises and
off-premises consumption as provided for in Section 28-3A-16.
(4) A valid retail beer license for off-premises
consumption as provided for in Section 28-3A-17.
(b) A license issued under this section shall authorize
the licensee to purchase mixed spirit beverages from a
licensed mixed spirit beverage wholesaler and sell the mixed
spirit beverages at retail commensurate with the privileges
granted to the licensee to sell beer and table wine.
(c) As a condition for obtaining a license under this
section, an applicant shall implement a secure age
verification system that electronically scans an approved form
of identification to determine whether an individual
purchasing mixed spirit beverages is no less than 21 years of
age.
(d) The board shall retain all limited mixed spirit
beverage expanded retail license fees collected. The board may
use collected fees for regulatory and administrative purposes
as determined by the board in its discretion, including for
the purposes of occasional purchases by the board of mixed
spirit beverages to ensure compliance with this chapter.
(e) Upon payment of a mixed spirit beverage expanded
retail license fee, there shall be no additional licensing or
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retail license fee, there shall be no additional licensing or
administrative requirements, including no requirement for
additional background checks imposed by the municipality,
county, or state for licensees for the sale of mixed spirit
beverages.
Section 6. Section 28-3A-21, as last amended by Acts
2025-405 and 2025-413 of the 2025 Regular Session, and Section
28-3A-23, Code of Alabama 1975, are amended to read as
follows:
"§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).
(3) Liquor wholesale wholesaler license, license fee of
five hundred dollars ($500).
(4) Beer wholesaler license, license fee of five
hundred fifty dollars ($550) plus two hundred dollars ($200)
for each warehouse in addition to the principal warehouse.
(5) Wine wholesaler license, license fee of five
hundred fifty dollars ($550) plus two hundred dollars ($200)
for each warehouse in addition to the principal warehouse.
(6) Beer and wine wholesaler license, license fee of
seven hundred fifty dollars ($750) plus two hundred dollars
($200) for each warehouse in addition to the principal
warehouse.
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warehouse.
(7) Mixed spirit beverage wholesaler license, license
fee of five hundred fifty dollars ($550) plus two hundred
dollars ($200) for each warehouse in addition to the principal
warehouse.
(8) Beer, wine, and mixed spirit beverage wholesaler
license, license fee of one thousand dollars ($1,000) plus two
hundred dollars ($200) for each warehouse in addition to the
principal warehouse.
(7)(9) Warehouse license, license fee of two hundred
dollars ($200).
(8)(10) Lounge retail liquor license, license fee of
three hundred dollars ($300).
(9)(11) Restaurant retail liquor license, license fee
of three hundred dollars ($300).
(10)(12) Club liquor license, Class I license fee of
three hundred dollars ($300), Class II license fee of seven
hundred fifty dollars ($750).
(11)(13) Retail table wine license for off-premises
consumption, license fee of one hundred fifty dollars ($150).
(12)(14) Retail table wine license for on-premises and
off-premises consumption, license fee of one hundred fifty
dollars ($150).
(13)(15) Retail beer license for on-premises and
off-premises consumption, license fee of one hundred fifty
dollars ($150).
(14)(16) Retail beer license for off-premises
consumption, license fee of one hundred fifty dollars ($150).
(15)(17) Retail common carrier liquor license, license
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(15)(17) 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.
(16)(18) 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.
(17)(19) Special events retail license, license fee of
one hundred fifty dollars ($150).
(20) Limited mixed spirit beverage expanded retail
license, license fee of five hundred dollars ($500).
(18)(21) Government venue license, license fee of two
hundred fifty dollars ($250).
(19)(22) Event storage license, license fee of five
hundred fifty dollars ($550).
(20)(23) Educational tourism distillery license,
license fee of one thousand dollars ($1,000).
(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 may 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."
"§28-3A-23
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"§28-3A-23
(a) No license prescribed in this titlechapter shall be
issued or renewed until the provisions of this titlechapter
have been complied with and the filing and license fees other
than those levied by a municipality are paid to the board.
(b) Licenses shall be granted and issued by the board
only to reputable individuals, to associations whose members
are reputable individuals, or to reputable corporations
organized under the laws of this state or duly qualified
thereunder to do business in Alabama, or, in the case of
manufacturers, duly registered under the laws of Alabama, and
then only when it appears that all officers and directors of
the corporation are reputable individuals.
(c)(1) In addition to all other requirements, an
applicant for a license under this section shall submit to the
board a form, sworn to by the applicant, providing written
consent from the applicant for the release of criminal history
background information. The form shall also require the
applicant's name, date of birth, and Social Security number
for completion of a criminal history background check.
(2) An applicant shall provide the board with two
complete functional sets of fingerprints, either cards or
electronic, properly executed by a criminal justice agency or
an individual properly trained in fingerprinting techniques.
The fingerprints and form shall be submitted by the board to
the State Bureau of Investigations Investigation of the Alabama
State Law Enforcement Agency for the purposes of furnishing
criminal background checks. The State Bureau of
Investigations Investigation shall forward a copy of the
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Investigations Investigation shall forward a copy of the
applicant's prints to the Federal Bureau of Investigation for
a national criminal background check. The applicant shall pay
all costs associated with the background checks required by
this section.
(3) For purposes of this section, the term "applicant"
shall include includes every person who has any proprietary or
profit interest of 10 percent or more in the licensed
establishment , but. The term shall not include any public
corporation whose shares are traded on a recognized stock
exchange.
(4) The board shall keep information received pursuant
to this section confidential, except that information received
and relied upon in denying the issuance of a license in this
state may be disclosed as may be necessary to support the
denial or when subpoenaed from a court.
(d) Every license issued under this titlechapter shall
be constantly and conspicuously displayed on the licensed
premises.
(e) Each retail liquor license application must be
approved by the governing authority of the municipality if the
retailer is located in a municipality, or by the county
commission if the retailer is located in the county and
outside the limits of the municipality, before the board shall
have authority to grant the license.
(f) Any retailer may be granted licenses to maintain,
operate, or conduct any number of places for the sale of
alcoholic beverages, but a separate license must be secured
for each place where alcoholic beverages are sold. No retail
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SB217 INTRODUCED
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for each place where alcoholic beverages are sold. No retail
license issued under this titlechapter shall be used for more
than one premises, nor for separate types of operation on the
same premises. Provided, however, any Any such licensed retail
operation existing on May 14, 2009, and operating based on
dual licenses, both a club or lounge license and a restaurant
license, on the same premises shall be exempt from the
requirement of the preceding sentence and may continue to
operate under the dual licenses. Any rule adopted by the board
relating to the requirements concerning dual licenses, both a
club or lounge license and a restaurant license, shall not
apply to any retail operation existing on May 14, 2009. The
rules shall include, but not be limited to, the maintenance of
separate books, separate entrances, and separate inventories.
Each premises must have a separate retail license. Where more
than one retail operation is located within the same building,
each operation under a separate or different ownership is
required to obtain a separate retail license; and where more
than one type of retail operation located within the same
building is operated by the same licensee, the licensee must
have a license for each type of retail operation. Provided,
thereThere shall be no licenses issued by the board for the
sale of liquor, beer, or wine by rolling stores.
(g) No retailer shall sell any alcoholic beverages for
consumption on the licensed premises except in a room or rooms
or place on the licensed premises at all times accessible to
the use and accommodation of the general public; but this
section shall not be interpreted to prevent a hotel or club
licensee from selling alcoholic beverages in any room of the
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licensee from selling alcoholic beverages in any room of the
hotel or club house occupied by a bona fide registered guest
or member or private party entitled to purchase the same.
(h) All beer, except draft or keg beer, sold by
retailers must be sold or dispensed in bottles, cans, or other
containers not to exceed 25.4 ounces. All wine sold by
retailers for off-premises consumption must be sold or
dispensed in bottles or other containers in accordance with
the standards of fill specified in the then effective
standards of fill for wine prescribed by the U.S. Treasury
Department.
(i) Draft or keg beer may be sold or dispensed within
this state within those counties in which and in the manner in
which the sale of draft or keg beer was authorized by law on
September 30, 1980, or in which the sale of draft or keg beer
is hereafter authorized by law. In rural communities with a
predominantly foreign population, after the payment of the tax
imposed by this title, draft or keg beer may be sold or
dispensed by special permit from the board, when, in the
judgment of the board, the use and consumption of draft or keg
beer is in accordance with the habit and customs of the people
of any such rural community. The board may grant to any civic
center authority or its franchisee or concessionaire, to which
the board may have issued or may simultaneously issue a retail
license under the provisions of this title, a revocable
temporary permit to sell or dispense in any part of its civic
center, for consumption therein, draft or keg beer. Either
permit shall be promptly revoked by the board if, in its
judgment, the same tends to create intemperance or is
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judgment, the same tends to create intemperance or is
prejudicial to the welfare, health, peace, temperance, and
safety of the people of the community or of the state.
(j) No importer shall sell alcoholic beverages to any
person other than a wholesaler licensee, or sell to a
wholesaler licensee any brand or brands of alcoholic beverages
for sale or distribution in this state, except where the
importer has been granted written authorization from the
manufacturer thereof to import and sell the brand or brands to
be sold in this state, which authorization is on file with the
board.
(k) No wholesaler shall maintain or operate any place
where sales are made other than that for which the wholesale
license is granted ; provided, however, a . A wholesaler may be
licensed to sell and distribute liquor, wine, and beer, and
mixed spirit beverages . No wholesaler shall maintain any place
for the storage of liquor, wine, or beer, or mixed spirit
beverages unless the same has been approved by the board. No
wholesaler license shall be issued for any premises in any
part of which there is operated any retail license for the
sale of alcoholic beverages.
(l) Licenses issued under this titlechapter may not be
assigned. The board may transfer any license from one person
to another, or from one place to another within the same
governing jurisdiction, or both, as the board may determine;
but no transfers shall be made to a person who would not have
been eligible to receive the license originally , nor for the
transaction of business at a place for which the license could
not originally have been issued lawfully.
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not originally have been issued lawfully.
(m) Every applicant for a transfer of a license shall
file a written application with the board within such time as
the board shall fix in its rules. Whenever any license is
transferred, there shall be collected a filing fee of fifty
dollars ($50), to be paid to the board, and the board shall
pay the fee into the State Treasury to the credit of the Beer
Tax and License Fund of the board.
(n) In the event that any person to whom a license has
been issued under the terms of this titlechapter becomes
insolvent, makes an assignment for the benefit of creditors,
or is adjudicated as bankrupt by either voluntary or
involuntary action, the license of the person shall
immediately terminate and be cancelled canceled without any
action on the part of the board, and there shall be no refund
made, or credit given, for the unused portion of the license
fee for the remainder of the license year for which the
license was granted. Thereafter, no license shall be issued by
the board for the premises, wherein the license was conducted,
to any assignee, committee, trustee, receiver, or successor of
the licensee until a hearing has been held by the board as in
the case of a new application for license. In all such cases,
the board shall have the sole and final discretion as to the
propriety of the issuance of a license for the premises, the
time it shall issue, and the period for which it shall be
issued, and shall have the further power to impose conditions
under which the licensed premises shall be conducted."
Section 7. Sections 28-3A-1.5, 28-3A-11, 28-3A-12,
28-3A-13, 28-3A-17.2, 28-3A-18, 28-3A-19, 28-3A-19.1, and
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28-3A-13, 28-3A-17.2, 28-3A-18, 28-3A-19, 28-3A-19.1, and
28-3A-20, Code of Alabama 1975, Section 1 of Act 2025-413,
2025 Regular Session, now appearing as Section 28-3A-6.5, Code
of Alabama 1975, Section 3 of Act 2025-405, 2025 Regular
Session, now appearing as Sections 28-3A-19.2, Code of Alabama
1975, and Section 2 of Act 2025-405, 2025 Regular Session, now
appearing as 28-3A-20.5, Code of Alabama 1975, are amended to
make conforming changes to read as follows:
"§28-3A-1.5
(a) Definitions.
As used in this section and Section 28-3A-6, the
following words shall have the following meanings:
(1) NONPROFIT SPECIAL EVENTS RETAIL LICENSE. A license
issued pursuant to subsection (b) for the sale of beer, wine,
mixed spirit beverages, or liquor.
(2) QUALIFYING ORGANIZATION. A bona fide nonprofit
organization operating in the state that satisfies all of the
following requirements:
a. Operates without profit to the organization's
members.
b. Is exempt from taxation under Section 501 of the
Internal Revenue Code 26 U.S.C. § 501 .
c. Satisfies at least one of the following
requirements:
1. Has been continuously in existence in the state for
a minimum of three years.
2. Is affiliated with a parent organization that has
been in existence in the state for a minimum of three years.
3. Has reorganized and is continuing its mission under
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3. Has reorganized and is continuing its mission under
a new name on file with the Secretary of State and with a new
tax identification number after having satisfied the
requirements set forth in either subparagraph 1. or 2.
(b) Licensed authorized.
The board may issue a nonprofit special events retail
license for the sale of beer, wine, mixed spirit beverages,
and liquor to a qualifying organization.
(c) Applications for nonprofit special events retail
license.
(1) Applications for a nonprofit special events retail
license shall be made with the board at least 25 calendar days
prior to the event on forms provided by the board and shall be
verified by oath or affirmation of an officer or director of
the qualifying organization who is authorized to do so.
(2) The applicant shall provide the board all of the
following:
a. Documentation to show that the nonprofit is a
qualifying organization.
b. A notarized, signed statement of proper authority
from the person signing the application.
c. Date, time, and address of the event location. The
applicant may also include an alternate event date or
location.
d. Documentation of authority for use of property for
the requested event.
e. A copy of the letter notifying the local governing
officials of the event.
(3) A qualifying organization that applies for a
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(3) A qualifying organization that applies for a
nonprofit special events retail license shall not be required
to provide evidence of liquor liability insurance.
(4) The board may request additional documentation at
its discretion.
(5) Nonprofit special eventevents retail licenses are
not renewable and are valid for a period not to exceed seven
days, and are issued upon terms and conditions as the board
may prescribe.
(d) Donated alcohol.
Beer, wine, mixed spirit beverages, and liquor may be
donated by a nonlicensed person.
(e) Rulemaking authority.
The board may adopt rules necessary for the
implementation and administration of this section and Section
28-3A-6."
"§28-3A-11
Upon applicant's compliance with the provisions of this
chapter and the regulations made thereunder, the board shall ,
where the application is accompanied by a certificate from the
clerk or proper officer setting out that the applicant has
presented his or her application to the governing authority of
the municipality, if the licensed premises is to be located
therein, and has obtained its consent and approval, shall
issue a retail liquor license which will authorize the
licensee to purchase liquor and wine from the board or as
authorized by the board and to purchase table wine, mixed
spirit beverages, and beer, including draft or keg beer in any
county or municipality in which the sale thereof is permitted,
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county or municipality in which the sale thereof is permitted,
from any wholesaler licensee of the board and to sell at
retail liquor and wine, dispensed from containers of any size,
mixed spirit beverages in containers not to exceed 16 ounces,
and beer, including draft or keg beer , in any county or
municipality in which the sale thereof is permitted, to
patrons. A lounge liquor licensee may permit dancing or
provide other lawful entertainment on the licensed premises.
No person under 19 years of age shall be admitted on the
premises of any lounge liquor licensee as a patron or
employee, and it shall be unlawful for any such licensee to
admit any minor to the premises as a patron or employee."
"§28-3A-12
Upon applicant's compliance with the provisions of this
chapter and the regulations made thereunder, the board may,
where the application is accompanied by a certificate from the
clerk or proper officers setting out that the applicant has
presented his or her application to the governing authority of
the municipality, if the licensed premises is to be located
therein, and has obtained its consent and approval, may issue
a club liquor license for a club which will authorize the
licensee to purchase liquor and wine from the board or as
authorized by the board and to purchase table wine , mixed
spirit beverages, and beer, including draft or keg beer , in
any county or municipality in which the sale thereof is
permitted, from any wholesale licensee of the board and to
sell liquor and wine, dispensed from containers of any size,
mixed spirit beverages in containers not to exceed 16 ounces,
and beer, including draft or keg beer, in any county or
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and beer, including draft or keg beer, in any county or
municipality in which the sale thereof is permitted, to the
members of the club or their guests for on-premises
consumption and to sell all of the above for off-premises
consumption except on Sunday."
"§28-3A-13
(a) Upon applicant's compliance with this chapter and
the rules adopted thereunder, the board shall , where the
application is accompanied by a certificate from the clerk or
proper officer setting out that the applicant has presented
his or her application to the governing authority of the
municipality, if the licensed premises is to be located
therein, and has obtained its consent and approval , shall
issue a restaurant liquor license for a hotel, restaurant,
civic center authority, or dinner theater which will authorize
the licensee to purchase liquor and wine from the board or as
authorized by the board and to purchase table wine , mixed
spirit beverages, and beer, including draft or keg beer, in
any county or municipality in which the sale thereof is
permitted, from any wholesale licensee of the board and, in
that part of the hotel, restaurant, club, or dinner theater
set out in the license, to sell liquor and wine, dispensed
from containers of any size, mixed spirit beverages in
containers not to exceed 16 ounces, and beer, including draft
or keg beer, in any county or municipality in which the sale
thereof is permitted, to the patrons, guests, or members for
on-premises consumption in any part of the civic center or in
that part of the hotel, restaurant, or dinner theater
habitually used for serving meals to patrons, guests, or
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habitually used for serving meals to patrons, guests, or
members, or other public or private rooms of the building in
accordance with this chapter and the rules adopted thereunder,
and where a restaurant located in a hotel, but not operated by
the owner of the hotel, is licensed to sell alcoholic
beverages in the restaurant, it may also sell alcoholic
beverages to guests in private rooms in the hotel.
(b) In accordance with Section 28-3A-13.1, a restaurant
retail liquor licensee licensed to sell beer, wine, mixed
spirit beverages, or spirits for on-premises consumption may
apply for and be issued a delivery service license that
authorizes the licensee to deliver, along with the purchase of
a meal, beer, wine, mixed spirit beverages, or spirits from
the retailer's premises."
"§28-3A-17.2
(a) As used in this section, "food or beverage truck"
means a fully encased food or beverage service establishment
approved by the Department of Public Health, which is housed
on a motor vehicle or on a trailer that a motor vehicle pulls
to transport, and from which a vendor, standing within the
frame of the vehicle, prepares, cooks, sells, or serves food
or beverages, or both, for immediate human consumption. The
term does not include a food or beverage cart that is not
motorized.
(b)(1) Upon a food or beverage truck applicant's
compliance with this chapter and any rules adopted thereunder,
and upon presentation of the certificate described in
subdivision (2), the board shall issue to the applicant a food
or beverage truck license that will authorize the licensee to
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or beverage truck license that will authorize the licensee to
purchase liquor and wine from the board or, as authorized by
the board, table wine , mixed spirit beverages, and beer,
including draft or keg beer, from any wholesale licensee of
the board and to sell alcoholic beverages for on-premises
consumption to guests who may consume the beverages in open
containers anywhere within an area designated by the municipal
governing body within an established entertainment district,
provided the license is not prohibited by a valid ordinance or
other ordinance in the valid exercise of police power by the
governing body of the municipality in which the food or
beverage truck is located.
(2) An applicant shall obtain from the municipality in
which the food or beverage truck intends to operate a
certificate setting out that the applicant has presented his
or her application to the governing body of the municipality
and the municipality approves of the issuance of the license
for the food or beverage truck to sell alcoholic beverages.
(c) The food or beverage truck license fee shall be
three hundred dollars ($300).
(d) A food or beverage truck operating outside the
designated entertainment district may not sell alcoholic
beverages.
(e) A food or beverage truck licensee shall consent, in
writing, to warrantless inspections by city, county, and state
inspectors and law enforcement.
(f) A food or beverage truck licensee must comply with
all on-premises rules, other than the requirement for seating
and restrooms.
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and restrooms.
(g) Each food or beverage truck licensee shall collect
and remit all state and local sales and use taxes and all
excise and privilege taxes due on the sale of alcoholic
beverages.
(h) A food or beverage truck licensee may not serve or
be authorized to serve any food or beverage within 150 feet of
any entrance to any permanent restaurant or to any Alcoholic
Beverage Control Board licensee.
(i) The board, by rule, may require security cameras in
all licensed food or beverage trucks and may require a barrier
be placed as a boundary around the vicinity of the food or
beverage truck or group of food or beverage trucks within
which consumption of alcoholic beverages is permitted. The
board shall adopt additional reasonable rules to protect
public health and safety."
"§28-3A-18
(a) Upon applicant's compliance with the provisions of
this chapter and the regulations made thereunder, the board
shall issue a retail common carrier liquor license for a
railroad, airline, bus line, ship line, vessel , or other
common carrier entity operating passenger vehicles with a
passenger seating capacity of at least 10 people, which will
authorize the licensee to sell, whenever operated in Alabama,
alcoholic beverages, liquor, mixed spirit beverages, wine, and
beer, including draft or keg beer, to passengers for
consumption while aboard such licensee. No railroad, airline,
bus line, ship line, vessel , or common carrier entity shall
sell alcoholic beverages to passengers for consumption within
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sell alcoholic beverages to passengers for consumption within
this state without first obtaining a retail common carrier
liquor license from the board.
(b) Sales within Alabama of alcoholic beverages by
retail common carrier liquor licensees shall be made in
accordance with and shall be subject to the provisions of this
chapter and regulations promulgated adopted thereunder."
"§28-3A-19
Upon applicant's compliance with the provisions of this
chapter and the regulations made 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
such park, commission , or authority, and may, in its
discretion, issue a special retail license to any other valid ,
responsible organization of good reputation for such period of
time not to exceed one year and upon such terms and conditions
as the board shall prescribe, which will 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 , mixed spirit
beverages, and beer from any wholesale licensee of the board
and to sell at retail and dispense such alcoholic beverages as
are authorized by the board at such locations authorized by
the board 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.M.a.m."
"§28-3A-19.1
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"§28-3A-19.1
(a) Upon compliance by an applicant with the provisions
of this chapter, and the regulations made thereunder, the
Alcoholic Beverage Control Board may, where the application is
accompanied by a certificate from the clerk or proper officers
setting out that the applicant has presented his or her
application to the governing authority of the municipality if
the licensed premises is to be located therein, or by a
certificate from the clerk or proper officers of the county if
the licensed premises is to be located within the county but
outside the jurisdiction of a municipality, and that the
applicant has obtained the consent and approval of the proper
governing authority, may issue an international motor speedway
license for any international motor speedway in the state
which marketed at least 60,000 tickets to at least two motor
sport racing events at the speedway in 1994, 1995, and 1996.
Notwithstanding the provisions of subdivisions (20) and (21)
of subsection (a) of Section 28-3A-25 Section 28-3A-25(a)(20)
and (21) , the international motor speedway license shall
authorize the licensee to purchase liquor and wine from the
board, or as authorized by the board, and to purchase table
wine, mixed spirit beverages, and beer, in any county or
municipality in which the sale thereof is permitted, from any
wholesale licensee of the board and to sell liquor and wine,
dispensed from containers of any size, mixed spirit beverages
in containers not to exceed 16 ounces, and beer in any county
or municipality in which the sale thereof is permitted, for
on-premises consumption each day of the week, including
Sundays Sunday , and to sell all of the aforementioned for
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SB217 INTRODUCED
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Sundays Sunday , and to sell all of the aforementioned for
off-premises consumption except on Sunday. Such sales shall be
incidental to the primary purpose of recreation and athletics,
and shall be confined to those buildings, facilities, and
grounds which comprise the speedway.
(b) An annual license fee of three hundred dollars
($300) is levied and prescribed for an international motor
speedway license issued and renewed by the board pursuant to
the authority contained in this section and this chapter."
"§28-3A-20
Upon applicant's compliance with this chapter and the
regulations made 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 granted, the board shall issue a
special events license for a valid, 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, mixed spirit beverages, and beer from any wholesale
licensee of the board and to sell at retail and dispense such
alcoholic beverages as are authorized by the board to the
patrons, guests, or members of the organization at such
locations or areas as shall be authorized by the board upon
such 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.M a.m."
"§28-3A-6.5
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"§28-3A-6.5
(a)(1) Upon compliance by an applicant with this
chapter and provided the operation is in compliance with state
and federal laws, rules, and regulations, the Alabama
Alcoholic Beverage Control Board may issue an Educational
Tourism Distillery license to any person engaged in the
producing, bottling, manufacturing, distilling, rectifying, or
compounding of liquor upon payment of the license fee as
established in Section 28-3A-21.
(2) For the purposes of this section, an Educational
Tourism Distillery licensee must produce, bottle, manufacture,
distill, rectify, or compound 100,000 gallons or more of
liquor each year.
(3) For purposes of this section, the total gross sales
of an Educational Tourism Distillery licensee must be 50
percent or more from liquor products produced, bottled,
manufactured, distilled, rectified, or compounded on site.
(4) For purposes of this section, an Educational
Tourism Distillery licensee may export sales outside of the
State of Alabama.
(5) Any licensee operating under or in conjunction with
an Educational Tourism Distillery license shall be responsible
for ensuring compliance with all applicable laws and board
rules relating to the sale of alcohol.
(b) An Educational Tourism Distillery license
authorizes the licensee to do all of the following on the
premises pursuant to this section:
(1) Purchase other liquor and wine from the board, or
as authorized by the board; purchase table wine , mixed spirit
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SB217 INTRODUCED
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as authorized by the board; purchase table wine , mixed spirit
beverages, and beer from any wholesale licensee of the board;
and sell liquor, wine, and beer dispensed from containers of
any size, to include draft beer, and mixed spirit beverages in
containers not to exceed 16 ounces, for on-premises
consumption. The sale of alcoholic beverages under this
subdivision shall be confined to a designated enclosed area
comprising no fewer than 500 square feet for service and
consumption, within which patrons under 21 years of age are
prohibited from entering. Any liquor manufactured at the
licensed premises may be sold for on-premise on-premises
consumption in this designated area, provided that the total
amount of liquor sold in a single tasting or sampling flight
does not exceed one and one-half ounces.
(2) Purchase other liquor and wine from the board, or
as authorized by the board; purchase table wine , mixed spirit
beverages, and beer from any wholesale licensee of the board;
and sell liquor, wine, and beer dispensed from containers of
any size, to include draft beer, and mixed spirit beverages in
containers not to exceed 16 ounces, for on-premises
consumption in a freestanding separate structure on the
licensed premises where the licensee provides or serves food.
Any liquor manufactured at the licensed premises may be sold
at retail for on-premises consumption in the designated area.
(3) Purchase other liquor and wine from the board, or
as authorized by the board; purchase table wine , mixed spirit
beverages, and beer from any wholesale licensee of the board;
and sell liquor, wine, and beer dispensed from containers of
any size, to include draft beer, and mixed spirit beverages in
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any size, to include draft beer, and mixed spirit beverages in
containers not to exceed 16 ounces, for on-premises
consumption at temporary or permanently designated serving
stations on the licensed premises for special events such as
receptions, parties, or similar gatherings. A licensee shall
post at each of its special event serving stations at least
one sign warning customers that the sale of alcoholic
beverages to patrons under 21 years of age is strictly
prohibited. Any liquor manufactured at the licensed premises
may be sold for on-premises consumption in the designated
serving stations.
(4) Sell at retail in a designated enclosed area, which
shall be separate from all other designated areas on the
licensed premises, for off-premises consumption, liquor
manufactured at the licensed premises ; provided, however,
liquor . Liquor sold for off-premises consumption may not
exceed four and one-half liters per customer per day and shall
be sealed, labeled, packaged, and taxed in accordance with
state and federal laws, rules, and regulations.
(5) Must provide patrons with the opportunity to
participate in a guided tour of the distillery operations,
which tours must include an educational component in which an
in-person guide provides information to patrons regarding the
historic and scientific characteristics of the liquor
manufactured at the licensed premises. A licensee may offer a
tasting or sampling of liquor manufactured at the licensed
premises at the conclusion of each tour in a designated
enclosed area which shall be separate from all other
designated areas on the licensed premises, provided that the
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designated areas on the licensed premises, provided that the
total amount of liquor provided to each patron for such
tasting or sampling does not exceed one and one-half ounces.
The price of the tasting or sampling shall be included in the
price charged to patrons over 21 years of age for the guided
tour. No retail sales shall be authorized in the designated
area.
(c) An Educational Tourism Distillery licensee may
transfer liquor directly from a licensed manufacturer. For the
purposes of this subsection, the licensee must have a 75
percent ownership or control of the brand or product received
by the licensee.
(d) The licensed premises must contain a distillery
operation that encompasses no fewer than 5,000 square feet in
one or more structures.
(e) There is levied and assessed upon all liquor
manufactured on the premises which is dispensed or sold at
retail for on-premises or off-premises consumption, as well as
samplings and tastings consumed as provided in this section,
the mark up and the privilege or excise tax imposed on the
retail sale of liquor in a state liquor store, in the same
manner as if collected in a state liquor store. Taxes and mark
up described in this subsection shall be remitted by the
licensee to the board. The respective mark up and taxes
collected shall be distributed, respectively, in the same
manner as the mark up and taxes collected in an ABC liquor
store.
(f)(1) The tax levied in subsection (e) shall be
collected by a return which shall be filed by the licensee
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collected by a return which shall be filed by the licensee
with the board postmarked not later than the last day of the
month following the month of production or sale of liquor,
which shall be accompanied by the remittance of the tax due.
The report shall include, but not be limited to, a
consolidated report of all liquor manufactured, sold, or
otherwise consumed on the licensed location. The report shall
be in the form and containing information as the board may
prescribe.
(2) If a licensee fails to file any return required to
be filed with the board on or before the date prescribed
therefor, including any written extension of time granted by
the board in advance, there shall be assessed as a penalty the
greater of 10 percent of any additional tax required to be
paid with the return or fifty dollars ($50).
(3) If a licensee fails to pay to the board the amount
of the tax due on a return required to be filed on or before
the date prescribed for payment of the tax, including any
written extension of time granted by the board in advance,
there shall be added as a penalty 10 percent of the unpaid
amount due on the return.
(4) Interest shall be added to any tax due to the board
which is not paid by the due date, from the due date of the
tax, computed based on the underpayment rate established by
the Secretary of the Treasury under the authority of 26 U.S.C.
§ 6621.
(g) An Educational Tourism Distillery licensee shall
not sell any alcoholic beverages direct to any retailer.
(h) An Educational Tourism Distillery licensee shall
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(h) An Educational Tourism Distillery licensee shall
file with the board, prior to making any sales in Alabama, a
list of its labels to be sold in Alabama and shall file with
the board its federal certificate of label approvals or its
certificates of exemption as required by the U.S. Treasury
Department. All liquors whose labels have not been registered
as herein provided for shall be considered contraband and may
be seized by the board or its agents or by any peace officer
of the State of Alabama without a warrant, and the goods shall
be delivered to the board and disposed of as provided by law.
(i)(1) An Educational Tourism Distillery licensee shall
keep at its principal place of business within the state daily
permanent records that show the quantities of raw materials
received and used in the manufacture of liquor, and the
quantities of alcoholic beverages manufactured and stored, the
sale of alcoholic beverages, the quantities of alcoholic
beverages stored for hire or transported for hire by or for
the licensee, and the names and addresses of the purchasers or
other recipients thereof.
(2) An Educational Tourism Distillery licensee shall
keep and maintain for a minimum of three years all records
required to be kept and maintained at the licensed location by
manufacturer, wholesaler, and retailer licensees for the tax
so levied, except that the Educational Tourism Distillery is
not required to maintain name, address, or other personal
demographic information for sales as provided in subdivision
(1).
(j) An Educational Tourism Distillery licensee shall be
subject to inspection by members of the board or by
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subject to inspection by members of the board or by
individuals authorized and designated by the board at any time
of the day or night as they may deem necessary for the
detection of violations of this chapter, of any law, or of the
rules of the board, or for the purpose of ascertaining the
correctness of the records required to be kept by the
licensees. The books and records of licensees, at all times,
shall be open to inspection by members of the board or by
individuals authorized and designated by the board. Members of
the board and its authorized agents, without hindrance, may
enter any place that is subject to inspection hereunder or any
place where records are kept for the purpose of making
inspections and making transcripts thereof.
(k) An Educational Tourism Distillery licensee may be
certified in the Responsible Vendor Program.
(l) A licensee shall post in each of its locations
where alcoholic beverages are served at least one sign warning
customers that the sale of alcoholic beverages to patrons
under 21 years of age is strictly prohibited. The sign shall
be posted at a point of sale or in any other location that is
visible to customers and employees.
(m) An Educational Tourism Distillery licensee shall
maintain a surety bond of not less than twenty-five thousand
dollars ($25,000), payable to the board for any outstanding
fine, penalty, or tax.
(n) Upon approval of the board, a licensee shall be
allowed one off-premises manufacturer extension location for
the exclusive storage of finished and unfinished goods
pursuant to this section:
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pursuant to this section:
(1) A licensee shall provide documentation indicating
approval from the Alcohol and Tobacco Tax and Trade Bureau for
the extension. Prior to a manufacturer extension being issued
in Alabama, the licensee must provide all of the following:
a. Approval of the manufacturer extension from the
Alcohol and Tobacco Tax and Trade Bureau.
b. A lease, deed, or other document showing control of
the property.
c. A current, valid Educational Tourism Distillery
license from the board.
(2) The application for a manufacturing extension must
be approved by the board prior to its use.
(3) The manufacturer extension premises must be secured
at all times.
(4) The manufacturer extension premises may not be used
for the exportation of products nor any form of distribution
of products within Alabama.
(5) Except where otherwise prohibited by federal or
state law, a licensee may obtain a manufacturer extension for
a building located 10 miles or less from the original licensed
premises. A manufacturer extension is prohibited outside the
State of Alabama.
(6) Authorized representatives of the board or
commissioned law enforcement officers of the state, county, or
municipality in which the manufacturer extension premises is
located may enter and search, without a warrant, the
manufacturer extension premises or any building owned or
occupied by the licensee in connection therewith, adjoining,
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occupied by the licensee in connection therewith, adjoining,
adjacent to, or part of the curtilage thereof, whether used as
a private dwelling or not, at any time.
(7) No sales, sampling, or tastings of any alcoholic
beverage shall be allowed at the manufacturer extension
premises.
(8) A licensee under this section which is issued a
manufacturer extension shall maintain all records related to
the disposition of the finished or unfinished goods stored in
the extension, as applicable.
(9) The finished and unfinished goods may be
transported in bond from the licensed premises to the
manufacturer extension location for storage, as applicable.
Transportation shall be made by the licensee or employee of
the same in a vehicle bearing signage on each side identifying
the licensee. A current copy of the manufacturer extension and
the bill of lading or other documentary evidence of ownership
of the product shall be included on board the transportation
vehicle."
"§28-3A-19.2
(a) Upon an applicant's compliance with this chapter
and rules adopted thereunder and payment of the government
venue license fee as established in Section 28-3A-21, the
board shall issue a government venue license to a person for
such period of time and upon such terms and conditions as the
board may prescribe. A government venue license authorizes the
licensee to purchase liquor and wine from the board and table
wine, mixed spirit beverages, and beer from any wholesale
licensee and to sell at retail and dispense for on-premises
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licensee and to sell at retail and dispense for on-premises
consumption alcoholic beverages at a location on property
owned or leased by the state or a political subdivision of the
state. Locations may include, but are not limited to, civic
centers and community event spaces; concert centers,
amphitheaters, and music halls; convention centers and
exhibition halls; government owned stadiums and sports
complexes; or historic properties, parks, fairgrounds, or
other outdoor spaces.
(b) The government venue license is a special retail
license, and selling 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 sold and 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 and served to the public
during continual business hours on a regular schedule.
(c) Any holder of a special retail license under
Section 28-3A-19 may convert the license to a government venue
license no later than September 30, 2026; provided, all
requirements for issuance of a government venue license are
met."
"§28-3A-20.5
(a) Upon an eligible applicant's compliance with this
chapter and rules adopted thereunder and payment of the event
storage license fee as established in Section 28-3A-21 the
board, on and after January 1, 2026, shall issue an event
storage license to a person for such period of time not to
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storage license to a person for such period of time not to
exceed one year and upon such terms and conditions as the
board may prescribe. An event storage license authorizes the
licensee to purchase and store alcoholic beverages at one
designated location and transfer alcoholic beverages as needed
to special event venues where the licensee holds the
appropriate special event license under the same Federal
Employer Identification Number.
(b) Notwithstanding Section 28-3-4, only the holder of
one or more of the following special event licenses shall be
eligible to make application for and hold an event storage
license:
(1) A special events retail license.
(2) A nonprofit special events retail license.
(3) A special retail license for 30 days or less.
(4) A government venue license.
(c) An event storage license authorizes a licensee to:
(1) Store alcoholic beverages, when not at a special
event venue, at the storage location;
(2) Arrange delivery of alcoholic beverages purchased
from the board or a wholesale licensee directly to the
licensee's storage location or directly to a special event
license venue; and
(3) Transfer alcoholic beverages between the storage
location and a special event venue. Alcoholic beverages
returned from a special event venue to the storage location
may then be transferred to another special event venue, but a
licensee may not transfer alcoholic beverages directly from
one special event venue to another special event venue without
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one special event venue to another special event venue without
first returning the alcoholic beverages to the storage
location.
(d)(1) The holder of an event storage license may only
purchase beer , mixed spirit beverages, and table wine from a
licensed wholesaler that maintains the appropriate franchise
for the brand purchased in the area applicable to the storage
location. The holder of an event storage license may only
purchase liquor from the board wholesale.
(2) The holder of an event storage license may purchase
alcoholic beverages under one of the special events licenses
listed in subsection (b) which is issued to the holder;
provided, the purchase ismay be made only from a vendor
permitted under the special events license and that any
remaining alcoholic beverages purchased are to be returned to
the storage location.
(e) The holder of an event storage license may apply
for and hold up to three such licenses, each of which permits
one designated storage location, provided:
(1) All storage locations are situated at least 100
miles from one another; and
(2) Alcoholic beverages may not be transferred between
storage locations.
(f) The storage location facility must:
(1) Be secured at all times with locked access when not
in use;
(2) Use an access control system to monitor and
restrict entry to authorized individuals only;
(3) Be temperature controlled as appropriate for the
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(3) Be temperature controlled as appropriate for the
types of alcoholic beverages stored; and
(4) Comply with local zoning and building codes.
(g) An event storage licensee shall track all alcoholic
beverage transfers, on a form prescribed by the board, which
shall include, but not be limited to, all of 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 transfer.
(4) The type of alcoholic beverage, the brand name, and
the quantity transferred.
(5) The destination of the transfer, identified by
location, special event license type, and number.
(6) If the destination of the transfer is the return of
alcoholic beverages from a special event venue to a storage
location, the type of alcoholic beverage, the brand, and the
quantity returned.
(7) A signed certification that the transfer is in
compliance with this section and board rules.
(h)(1) An event storage licensee shall maintain for a
period of three years records of all alcoholic beverages
purchased, stored, transferred, and sold in accordance with
rules adopted by the board. These 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.
(2) All invoices, transfer logs, and other records of
an event storage licensee shall be subject to inspection by
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an event storage licensee shall be subject to inspection by
members of the board or by agents authorized and designated by
the board at any time during the normal business hours
established by the licensee.
(3) Inspection by the board or by agents authorized and
designated by the board may:
a. Include a search by law enforcement officers with
jurisdiction if the circumstances require; and
b. Extend to other buildings attached or adjacent to
the storage location, including a dwelling.
(i)(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.
(j) The board shall adopt rules to implement this
section."
Section 8. Section 28-3A-27 is added to the Code of
Alabama 1975, to read as follows:
§28-3A-27
(a) A person that is issued a limited mixed spirit
beverage expanded retail license pursuant to this chapter
which sells, attempts to sell, furnishes, or otherwise
provides a mixed spirit beverage to an individual who is less
than 21 years of age shall be subject to the following
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than 21 years of age shall be subject to the following
penalties:
(1) For a first offense, the board shall prohibit the
the sale of mixed spirit beverages for 30 days at the licensed
premises where the violation occurred.
(2) For a second offense within the same 18-month
period, the board shall suspend the sale of any alcoholic
beverage at the premises covered by the license for 90 days.
(3) For a third offense within the same 18-month
period, the board shall revoke all licenses to sell alcoholic
beverages and tobacco products covering the premises where the
violation occurred for a 24-month period.
(b) The board shall publish a list identifying any
retailer, by licensed premises, which violates this section.
Upon notification by the board and confirmed receipt by a
wholesaler, the wholesaler shall terminate sales or
distribution to the retailer according to the terms of the
board's order.
Section 9. Chapter 8B, commencing with Section 28-8B-1,
is added to Title 28 of the Code of Alabama 1975, to read as
follows:
§28-8B-1
(a) The Legislature hereby finds and declares that 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
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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 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,
among other purposes, ensuring 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.
(b) If any provision of this chapter, or its
application to any person or circumstance, is determined by a
court to be invalid or unconstitutional, that provision shall
be stricken and the remaining provisions shall be construed in
accordance with the intent of the Legislature to further limit
rather than expand commerce in alcoholic beverages, including
by prohibiting any commerce in alcoholic beverages not
expressly authorized, and to enhance strict regulatory control
over taxation, distribution, and sale of alcoholic beverages
through the existing uniform system of regulation of alcoholic
beverages.
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beverages.
§28-8B-2
(a) This chapter applies only to mixed spirit beverages
and does not apply to regulation of beer or wine franchises.
(b) Nothing in this chapter shall be deemed to repeal
or amend any existing beer or wine franchise laws. This
chapter is intended to address mixed spirit beverages and to
leave in effect and unchanged any local or state franchise
laws existing on the effective date of this act.
§28-8B-3
(a) Each supplier of mixed spirit beverages licensed by
the board to sell its mixed spirit beverages within the State
of Alabama shall sell its mixed spirit beverages only through
wholesaler licensees of the board and shall grant in writing
to each of its wholesalers a distribution agreement which
contains the wholesaler's exclusive sales territory for the
distribution of the supplier's designated brand in accordance
with Chapter 8.
(b) A licensed retailer may not purchase mixed spirit
beverages from any entity other than the licensed wholesaler
designated by the manufacturer of the mixed spirit beverages.
§28-8B-4
(a) For the purposes of this chapter, the following
terms have the following meanings:
(1) DISTRIBUTION AGREEMENT. Any written and signed
agreement between a wholesaler and a supplier, whereby a
wholesaler is granted the right to purchase and sell a brand
of mixed spirit beverages sold by a supplier.
(2) FAIR MARKET VALUE. An amount equal to a multiple of
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(2) FAIR MARKET VALUE. An amount equal to a multiple of
the wholesaler's gross profit on the wholesaler's sales of the
supplier's products in the 12-month period immediately
preceding the date of the notice of termination or non-renewal
by supplier.
(3) GOOD CAUSE. A material breach by the wholesaler of
an essential element in a distribution agreement with a
supplier which is uncured or which reoccurs three or more
times.
(4) GROSS PROFIT. The wholesaler's selling price, net
of promotions, discounts, allowances, and freight, of the
products sold during such 12-month period, less the
wholesaler's cost to purchase the products from the supplier,
net of any discounts, promotions, and allowances from the
supplier.
(b) Upon a supplier's termination or non-renewal of a
distribution agreement with a wholesaler, except where
termination or non-renewal is for good cause, the supplier
shall pay the wholesaler reasonable compensation in an amount
equal to the fair market value of the wholesaler's business
attributable to the supplier's portfolio, including the value
of the distribution rights, current saleable inventory,
goodwill, and other relevant assets.
(c) The supplier and wholesaler shall have 30 days
following receipt of the supplier's notice of termination or
non-renewal to agree upon a multiple of gross profit in
determining fair market value. Following the notice of
termination or non-renewal, but prior to determination of the
fair market value of the supplier's portfolio, the supplier
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fair market value of the supplier's portfolio, the supplier
and wholesaler shall each continue to operate in good faith in
the regular course of the business relationship.
(d)(1) In determining fair market value, in the event
that supplier and wholesaler cannot agree upon the multiple of
gross profit after 30 days, the parties shall then have 10
business days to each appoint, at their own cost, an
independent third-party appraiser with demonstrable experience
in valuating alcoholic beverage distribution rights. Each
party's independent appraiser, within 30 days, shall submit in
writing the fair market value appraisal of the supplier's
portfolio, including disclosing the multiple of gross profit
used to arrive at the valuation.
(2) If the independent appraisers' valuations of the
supplier's portfolio are within 10 percent of each other, the
fair market value shall be the average of the two valuations.
(3) If the independent appraisers' valuations are not
within 10 percent of each other, a third independent appraiser
with experience in valuating alcoholic beverage distribution
rights shall be retained by mutual agreement of the parties
within 10 business days to assess the fair market value, and
the fair market value shall be submitted in writing by the
third independent appraiser within 30 days. The cost of the
third independent appraiser shall be shared equally by the
parties. The fair market value shall then be the average of:
(i) the third independent appraiser's valuation; and (ii) the
average of the first two valuations.
(e) The supplier shall have no more than seven business
days after the determination of fair market value within which
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days after the determination of fair market value within which
to remit payment of reasonable compensation to the wholesaler.
Section 10. If any provision of this act, or its
application to any person or circumstance, is determined by a
court to be invalid or unconstitutional, that provision shall
be stricken and the remaining provisions shall be construed in
accordance with the intent of the Legislature to further limit
rather than expand commerce in alcoholic beverages, including
by prohibiting any commerce in alcoholic beverages not
expressly authorized, and to enhance strict regulatory control
over taxation, distribution, and sale of alcoholic beverages
through the existing uniform system of regulation of alcoholic
beverages.
Section 11. This act shall become effective immediately
upon approval by the Governor.
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