SB292 Alabama 2016 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2016

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28-3A-19, 28-3A-20, 28-3A-21, 28-3A-22, 28-3A-24, 28-7-16 am'd.; Secs. 28-3-74, 28-3-280 to 28-3-286, inclusive, repealed on October 1, 2012

Summary

SB292 would phase out the Alabama ABC Board’s retail liquor sales by October 1, 2021, while preserving wholesale operations and creating a framework for licenses, finances, taxes, and oversight during the transition.

What This Bill Does

The bill requires an orderly phase-out of state retail liquor stores and board-operated retail functions by Oct 1, 2021, with closures prioritized by lease end dates, profitability, and proximity to other stores. It creates an Alcoholic Beverage Control Retail Phase-Out Fund to pay phase-out costs, including employee benefits, funded by proceeds from selling assets, with any leftover money going to the General Fund. It establishes a new retail licensing framework (applications, approvals, renewals, fees) and grandfathering provisions for current off-premises licensees, while restricting new off-premises liquor sales. It also restructures taxes and markups on liquor and table wine, allocates proceeds to various state funds, creates the Products Selection Review Committee for oversight, and requires a shift to an inventory bailment system with warehousing contracts, plus a hiring freeze and displaced-employee benefits during the transition.

Who It Affects

• ABC Board employees — face a phase-out, hiring freeze, potential relocation/benefits, and other transition provisions.
• Retail licensees and license applicants — subject to new application processes, annual fees, license expirations, transfer restrictions, and potential loss of off-premises sales rights for most licenses.
• Landlords and lessors of state liquor store properties — affected by lease terminations and the board’s efforts to transition out of retail operations.
• Local governments (municipalities and counties) — changes to tax proceeds distribution from liquor sales and related local revenue impacts.
• Private warehousing and logistics contractors — potential new contracts related to warehousing and distribution during the phase-out.
• Department of Economic and Community Affairs — provides technical assistance for asset disposition and phase-out activities.
• Displaced state employees and the broader public — potential compensation, job placement options, and consumer product oversight.

Key Provisions

• Phase-out of state-operated retail liquor stores and board retail functions by Oct 1, 2021, with at least 20% of stores closed each year beginning 2017, based on lease end dates, profitability, and proximity to other stores.
• 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; remaining inventory dispositions methods (to another store, warehouse, or to licensees at favorable prices).
• Create the Alcoholic Beverage Control Retail Phase-Out Fund to pay phase-out expenses (including employee benefits); funds managed through warrants and replenished from future revenues; any excess funds go to the State General Fund.
• Establish a Retail Licensing framework including application forms, procedures, annual retail license fees, license expiration each September 30, and renewal requirements; allow approval, denial, and hearings for license applications; require background qualifications and disqualifications for applicants and certain officers.
• Grandfather existing licensees who held authority to sell off-premises liquor on the date of introduction, allowing annual renewals but prohibiting new sales or transfers of these licenses; establish general rules for retail license possession and transfer.
• Reallocate and increase taxes/markups on liquor and table wine, with specified rates (including new taxes and distributions to General Fund, Mental Health, Human Resources, and local governments) and a shift to an inventory bailment system by Oct 1, 2021; implement required monthly tax collections and reporting.
• Create the Products Selection Review Committee (5 members) to review board product decisions, report irregularities to the Attorney General and State Ethics Commission, and require board cooperation; committee duties include oversight of product availability and pricing.
• Require the board to terminate or suspend licenses for selling to minors, and permit waivers or hearings for such actions; the board may contract for warehousing services and require product shipment documentation.
• Authorize a shift to inventory bailment and authorize warehousing contracts; repeal Sections 28-3-74 and 28-3-280 through 28-3-286 by Oct 1, 2021; board to retain wholesale functions and enforcement duties during transition.

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