SB115 Alabama 2015 Session

Summary

Primary Sponsor

Arthur Orr Senator

Republican

Session

Regular Session 2015

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28-3A-12, 28-3A-19, 28-3A-20, 28-3A-21, 28-3A-22, 28-7-16 am'd.; Secs. 28-3-74, 28-3-280 to 28-3-286, inclusive, repealed on October 1, 2012

Description

Under existing law, liquor wholesale licensees may sell liquor at wholesale to the Alabama Alcoholic Beverage Control Board or as authorized by the board, other than to a retail licensee of the board. Under existing law, state liquor stores operated by the Alabama Alcoholic Beverage Control Board and certain licensed private retail stores may sell liquor at retail. Under existing law, retail licensees of the board must purchase liquor from the board for resale.

This bill would require the Alabama Alcoholic Beverage Control Board to phase out retail sale of alcoholic beverages by the board prior to October 1, 2016 but continue all other functions prescribed by law; require the board to obtain the best available price for fixed assets, equipment, and property; and require the Department of Economic and Community Affairs to provide certain technical assistance.

This bill would create a special fund in which proceeds of the sale of fixed assets, equipment, and property and the bid price payments would be placed and would provide moneys in the fund would be used to pay phase-out costs, including employee benefits.

This bill would establish an application, review, appeal and investigation process for licensees; provide that licenses would be issued to the highest competitive bidder and provide for the bidding and bonding process; provide a purchase option, with financing available, to eligible retail licensees; provide penalties for inducing a person from bidding for a retail license; and grant a displaced employee bid preference of five percent.

This bill would provide for the sale, transfer, and surrender of licenses; provide that persons possessing authority to sell liquor for off-premises consumption on the date of introduction of this bill could continue to operate according to the license; and prohibit all other persons from selling liquor for off-premises consumption.

This bill would provide for the markup on all alcohol sold by this board and provide for the distribution of proceeds; provide that liquor sold by the board would be subject to existing taxes and provide for the redistribution of certain tax proceeds; reallocate a portion of the proceeds of existing taxes on table wine; and provide for the distribution of local sales taxes on the sale of liquor by retail licensees.

This bill would require the board to implement a hiring freeze of certain employees; and grant certain benefits to displaced employees, including additional consideration for staffing retail operations during the phase-out.

This bill would require revocation or suspension of licences issued by the board upon proof of selling alcohol to a minor.

This bill would create the Products Selection Review Committee and would require the committee to review product selection decisions of the board and report irregularities and violations to the Attorney General and the State Ethics Commission.

This bill would provide for the distribution of certain payments delayed for inventory purposes; require the board to convert to an inventory bailment system; and permit the board to enter contracts for certain warehousing functions.

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Subjects

Alcoholic Beverage Control Board