SB115 Alabama 2015 Session

Summary

Primary Sponsor

Arthur OrrSenator

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28-3A-12, 28-3A-19, 28-3A-20, 28-3A-21, 28-3A-22, 28-7-16 am'd.; Secs. 28-3-74, 28-3-280 to 28-3-286, inclusive, repealed on October 1, 2012

Summary

SB115Would end state retail alcohol sales by the ABC Board by Oct 1, 2016 and shift retail licensing to private bidders, while preserving wholesale operations.

What This Bill Does

The bill requires the ABC Board to phase out its retail alcohol sales by October 1, 2016 but keep other board functions. It directs the board to sell or liquidate fixed assets and set up the Alcoholic Beverage Control Board Retail Phase-Out Fund to pay phase-out costs, including employee benefits. It creates a competitive bidding process to grant retail licenses to the highest bidder, with a purchase option financing for eligible licensees, penalties for bid interference, and a five-percent displaced-employee bid preference. It also establishes a Products Selection Review Committee to monitor product choices, requires an inventory bailment system, imposes a hiring freeze, allocates displaced-employee benefits, and sets rules for license sale, transfer, and local tax distributions.

Who It Affects

• ABC Board employees and displaced workers: face a phase-out, possible relocation, a hiring freeze, and benefits funded by the phase-out fund; displaced employees receive a bid preference and potential financing options.
• Retail licensees and private bidders: will compete for licenses via sealed bids, may obtain purchase options or financing; existing licensees may have limited continued operation under certain pre-existing authorities, while most retail operations transition to private ownership.

Key Provisions

• Phase-out of state retail liquor stores and board-operated retail operations by October 1, 2016.
• Sale, liquidation, transfer, and disposal of fixed assets, equipment, and property at the best available price; Department of Economic and Community Affairs to provide technical assistance.
• Creation of the Alcoholic Beverage Control Retail Phase-Out Fund to pay phase-out expenses including employee benefits; proceeds from asset sales deposited to this fund.
• Licensing process: licenses issued by sealed competitive bids to the highest bidder; bonding requirements; penalties for bid interference; five-percent displaced-employee bid preference.
• Purchase option with financing for eligible retail licensees; financing terms administered by the commissioner; potential revocation or reissuance if financing fails.
• Sale, transfer, and surrender of licenses; certain existing licenses may continue to operate off-premises under current terms; new off-premises sales by others prohibited.
• Board to implement a markup system and redistribute proceeds; taxes collected on board sales to be distributed to state and local funds as specified.
• Hiring freeze on new ABC Board employees; displaced employees receive benefits and staffing priority during phase-out; additional compensation for staffing during transition.
• Products Selection Review Committee to audit product choices and report irregularities to the Attorney General and State Ethics Commission.
• Inventory system converted to bailment; board may contract for warehousing; payments related to inventory kept separate from other funds.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverage Control Board