SB464 Alabama 2014 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2014

Title

Alcoholic beverages, retail sale by state phased out, privilege granted to Class A and Class B licensees, inventory bailment system, tax, displaced employees benefits, leases, market zones established, Secs. 28-1-4, 28-2-22, 28-3-43, 28-3-53.1, 28-3-53.2, 28-3-202, 28-3-205, 28-3-207, 28-3-241, 28-3A-11, 28-3A-12, 28-3A-19, 28-3A-20, 28-3A-21, 28-3A-22, 28-7-16 am'd.; Secs. 28-3-74, 28-3-280 to 28-3-286, inclusive, repealed on October 1, 2012

Summary

SB464 would end the Alabama ABC Board's retail alcohol sales by 2015 and move toward private licenses while keeping wholesale operations and implementing a phased transition with new financing, oversight, and staffing rules.

What This Bill Does

The bill requires the ABC Board to close all state liquor stores and retail operations by October 1, 2015, keeping wholesale functions. It creates a Retail Phase-Out Fund to pay transition costs, requiring sale of fixed assets and inventory and providing technical assistance. It replaces retail licensing with a competitive bidding process for private licenses, offers a purchase option with financing for eligible bidders, and gives a five percent displaced-employee bid preference; it also imposes a hiring freeze and creates oversight and inventory transition measures.

Who It Affects

• Private individuals or entities seeking to obtain retail liquor licenses and current retail licensees and their displaced employees, who would bid for licenses, possibly purchase them with financed options, and receive bidding preferences and potential staff protections.
• The Alabama Alcoholic Beverage Control Board, its leases and assets, displaced employees, lessors, and local governments, which would experience asset sales, lease terminations, wage and staffing changes, and new revenue distributions from taxes and markups.

Key Provisions

• Phase out retail alcohol sales by the ABC Board by October 1, 2015, while retaining wholesale operations and other board functions.
• Sell or dispose of all fixed assets, equipment, and property at the best available price; obtain technical assistance from the Department of Economic and Community Affairs for this disposal.
• Create the Alcoholic Beverage Control Retail Phase-Out Fund to pay phase-out costs, funded by asset sale proceeds and initial bid price payments; remaining funds go to the State General Fund.
• Establish an application, review, appeal, and investigation process for retail licenses; issue licenses to the highest competitive bidder with bonding; provide a purchase option with financing for eligible licensees; grant a five percent displaced-employee bid preference.
• Provide for sale, transfer, or surrender of licenses; allow existing authority to sell liquor for off-premises consumption only under current licenses introduced at the time; prohibit new off-premises sales by others.
• Set markup on all alcohol sold by the board and distribute proceeds; adjust taxes on liquor and table wine and redistribute local sales taxes to municipalities and counties as prescribed.
• Implement a hiring freeze; provide displaced employees with benefits and relocation/ staffing preferences, including examination points and bidding advantages for affected Merit System employees.
• Create the Products Selection Review Committee to review product choices and report irregularities to the Attorney General and State Ethics Commission; shift to an inventory bailment system and allow warehousing contracts for inventory.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverage Control Board