HB 111

Existing law provides for a special events retail license for the sale of beer, wine, and liquor

This bill would provide for the issuance of a nonprofit special events retail license for the sale of beer, wine, and liquor; specify who may receive the license; establish fees for the license; provide for a procedure to protest issuance of the license; and provide for an alternate event date or location

This bill would specify that an organization that otherwise qualifies for a nonprofit special events retail license may serve alcoholic beverages without a license as long as no alcoholic beverages are sold by the drink and any fee or cost of admission to the event is uniform regardless of whether participants consume alcohol

Existing law authorizes a manufacturer licensee of beer or wine to donate its product to a licensed charitable special event operated by a nonprofit organization

This bill would remove the requirement that the charitable special event be licensed by the Alcoholic Beverage Control Board

This bill would also provide the Alcoholic Beverage Control Board with rulemaking authority to implement and administer this act

Relating to the sale of alcoholic beverages; to provide for the issuance of a nonprofit special events retail license for the sale of beer, wine, and liquor; to specify who may receive the license; to establish fees for the license; to provide a procedure for notice and hearing to protest issuance of the license; to provide for an alternate event date or location; to authorize certain persons to serve alcohol without a license under certain conditions; to provide the Alcoholic Beverage Control Board with rulemaking authority; and to amend Section 28-3A-6, Code of Alabama 1975, as last amended by Act 2017-404, 2017 Regular Session, relating to donations of alcoholic beverages to charitable events, to remove the requirement that the charitable event be licensed by the Alcoholic Beverage Control Board prior to being eligible to receive a donation.

Section 1

Definitions. As used in Sections 1 through 9, the following words shall have the following meanings: (1) BOARD. The Alcoholic Beverage Control Board. (2) NONPROFIT SPECIAL EVENTS RETAIL LICENSE. A license issued pursuant to Section 2 for the sale of beer, wine, or liquor. (3) QUALIFYING ORGANIZATION. Either of the following: a. Any nonprofit corporation, association, or organization which is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code. b. A nonprofit corporation or nonprofit group organized for any of the following purposes: 1. Athletic. 2. Charitable. 3. Educational. 4. Literary. 5. Prevention of abuse to children or animals. 6. Public safety. 7. Scientific.

Section 2

License authorized. The board may issue a nonprofit special events retail license for the sale of beer, wine, and liquor to a qualifying organization. The license shall authorize a qualifying organization to purchase and sell specified alcoholic beverages at a special event.

Section 3

Fees. (a) Nonprofit special events retail license fees are as follows: (1) Ten dollars ($10) per day for the sale of beer and wine. (2) Twenty-five dollars ($25) per day for the sale of beer, wine, and liquor. (b) All fees are payable in advance to the board.

Section 4

Restrictions related to nonprofit special events retail licenses. (a) Each nonprofit special events retail license shall be issued for a special event at a specific location and is not valid for any other location except as provided in

Section 5

(b) A nonprofit special events retail license authorizes the sale of the beverage specified only between the hours of 7:00 a.m. of the day specified and until 2:00 a.m. of the day immediately following. (c) A nonprofit special events retail license may not be issued to a qualifying organization for more than 15 days in one calendar year.

Section 6

Grounds for denial. (a) An application by a qualifying organization for a nonprofit special events retail license may be denied upon the grounds that the issuance would be injurious to the public welfare because of the nature of the special event, its location within the community, or the failure of the qualifying organization in a past special event to conduct the event in compliance with applicable laws. (b) Public notice of the proposed nonprofit special events retail license and of the procedure for protesting issuance of the license shall be conspicuously posted at the proposed location for at least seven calendar days before approval of the permit.

Section 7

Applications for nonprofit special events retail license. (a) Applications for a nonprofit special events retail license shall be made with the board at least 30 calendar days prior to the event on forms no longer than one page provided by the board and shall be verified by oath or affirmation of an officer of the qualifying organization making the application. (b) In addition to the fees provided in Section 3, an applicant shall include payment of a fee established by the board, not to exceed twenty-five dollars ($25), for both investigation and issuance of a nonprofit special events retail license. (c) The board shall hold a hearing if, after investigation and upon review of the contents of a protest filed by an affected person, sufficient grounds appear to exist for denial of a nonprofit special events retail license. A protest shall be filed within five calendar days after the date notice is posted pursuant to Section 5. A hearing required by this subsection or any hearing held at the discretion of the board shall be held at least seven calendar days after the initial posting of the notice, and notice of the hearing shall be provided to the applicant and any person who has filed a protest. (d) The board may assign all or any portion of its functions under this act to an administrative officer. (e) The board shall either approve or disapprove each application for a nonprofit special events retail license within seven calendar days after the date notice is posted pursuant to Section 5 or within seven calendar days after any hearing conducted pursuant to this section, whichever is later.

Section 8

Alternate event date or location. The application for a nonprofit special events retail license filed pursuant to Section 6 and the public notice posted pursuant to Section 5 may contain an alternate event date or location. If included in the application and notice, the alternate event date or location may be used by the qualifying organization in lieu of the original date and location. There is no additional fee for using the alternate event date or location.

Section 9

Exemptions. A qualifying organization shall be exempt from the license requirements of this act, the license requirements of Chapter 3A of Title 28 of the Code of Alabama 1975, and any other county or municipal beer, wine, or liquor retail license requirement and shall be deemed to be dispensing gratuitously and not to be selling beer, wine, or liquor when it serves, by the drink, beer, wine, or liquor at a private function held by the organization on unlicensed premises, so long as any admission or other charge, if any, required to be paid as a condition for entry into the event is uniform as to all without regard to whether the participant consumes the beer, wine, or liquor.

Section 10

Rulemaking authority. The board may adopt rules necessary for the implementation and administration of this act. Section 10. Section 28-3A-6, Code of Alabama 1975, as last amended by Act 2017-404 of the 2017 Regular Session, is amended to read as follows:

§28-3A-6.

(a) Upon applicant's compliance with the provisions of this chapter and the regulations made thereunder, the board shall issue to applicant a manufacturer license which shall authorize the licensee to manufacture or otherwise distill, produce, ferment, brew, bottle, rectify, or compound alcoholic beverages within this state or for sale or distribution within this state. No person shall manufacture or otherwise distill, produce, ferment, brew, bottle, rectify or compound alcoholic beverages within this state or for sale or distribution within this state or to the state, the board, or any licensee of the board, unless such person or the authorized representative of the person shall be granted a manufacturer license issued by the board.

(b) No manufacturer licensee shall sell any alcoholic beverages direct to any retailer or for consumption on the premises where sold except as specified under subsection (h), nor sell or deliver any such alcoholic beverages in other than original containers approved as to capacity by the board and in accordance with standards of fill prescribed by the U. S. Treasury Department, nor maintain or operate within the state any place or places, other than the place or places covered by the manufacturer license, where alcoholic beverages are sold or where orders are taken.

(c) Each manufacturer licensee shall be required to 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 and wines 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 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.

(d) All such manufacturer licensees shall be required to mail to the board prior to the twentieth day of each month a consolidated report of all shipments of alcoholic beverages made to each wholesaler during the preceding month. Such reports shall be in such form and containing such information as the board may prescribe.

(e) Every manufacturer shall keep at its principal place of business within the state, daily permanent records which shall show the quantities of raw materials received and used in the manufacture of alcoholic beverages, 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.

(f) Every place licensed as a manufacturer shall be subject to inspection by members of the board or by persons duly authorized and designated by the board at any and all times 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 and regulations 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 such licensees shall, at all times, be open to inspection by members of the board, or by persons duly authorized and designated by the board. Members of the board and its duly authorized agents shall have the right, without hindrance, to enter any place which is subject to inspection hereunder, or any place where such records are kept for the purpose of making such inspections and making transcripts thereof.

(g) Licenses issued under this section shall, unless revoked in the manner provided in this chapter, be valid for the license year commencing January 1 of each year.

(h)(1) A manufacturer licensee actively and continuously engaged in the manufacture of alcoholic beverages on the manufacturer's licensed premises in the state may conduct tastings or samplings on the licensed premises, as regulated by the ABC Board except as to quantity and hours of operation, or as otherwise provided by statute, and for that purpose give away or sell alcoholic beverages manufactured there for consumption on only one premises where manufactured.

All alcoholic beverages manufactured and retained on the manufacturer's licensed premises for tasting or sampling shall remain on the premises and be dispensed from a barrel or keg or other original containers.

(2) Notwithstanding subdivision (1), a manufacturer licensee engaged in the manufacture of less than 60,000 barrels of beer per year may sell at retail on its licensed premises in the state, for off-premises consumption, beer produced at that licensed premises; provided, however, beer sold for off-premises consumption: May not exceed 288 ounces per customer per day; may not be produced pursuant to a contract with another manufacturer; and shall be sealed, labeled, packaged, and taxed in accordance with state and federal laws and regulations. For purposes of this subdivision, beer produced by a parent, subsidiary, or affiliate of the licensee, or by a contract brewery, regardless of where the beer is produced, shall be included for purposes of calculating the 60,000 barrel limit.

(3) A manufacturer licensee engaged in the manufacture of liquor on the manufacturer's licensed premises in the state may sell at retail on its licensed premises, for off-premises consumption, liquor manufactured at that licensed premises; provided, however, liquor sold for off-premises consumption may not exceed 750 milliliters per customer per day and shall be sealed, labeled, packaged, and taxed in accordance with state and federal laws and regulations. The manufacturer licensee shall keep and maintain records for three years of all sales for off-premises consumption.

(4) Notwithstanding subdivision (1), the board may grant a permit allowing a manufacturer licensee engaged in the manufacture of less than 50,000 gallons of table wine per year in the state to establish and operate one additional off-site tasting room to be used to conduct tastings or samplings and to sell at retail the licensee's table wine. The board may also grant a single permit allowing an association representing the majority of wineries and grape growers in the state to establish and operate one off-site tasting room to be used to conduct tastings and samplings and to sell at retail table wines produced by wine manufacturer licensees in the state. An applicant for an off-site tasting room permit shall file a written application with the board in such form and containing such information as the board may prescribe, along with proof of consent and approval from the appropriate governing authority in which the off-site tasting room is to be located and a filing fee of fifty dollars ($50). All state and federal laws and regulations applicable to on-site tasting rooms shall apply to an off-site tasting room. Wine sold at an off-site tasting room for off-premises consumption may not exceed one case of wine per customer per day. For purposes of this subdivision, one case of wine means the equivalent of twelve 750-milliliter bottles of wine.

(i)(1) In addition to the licenses provided for by Chapter 3A of this title, and any county or municipal license, there is levied on the manufacturer of the alcoholic beverages dispensed on the premises the privilege or excise tax imposed on beer by Sections 28-3-184 and 28-3-190; and imposed on table wine by Section 28-7-18; and imposed on liquor by Sections 28-3-200 to 28-3-205, inclusive. Every manufacturer licensee shall file the tax returns, pay the taxes, and perform all obligations imposed on wholesalers at the times and places set forth therein. It shall be unlawful for any manufacturer licensee who is required to pay the taxes so imposed in the first instance to fail or refuse to add to the sale price and collect from the purchaser the required amount of tax, it being the intent and purpose of this provision that each of the taxes levied is in fact a tax on the consumer, with the manufacturer licensee who pays the tax in the first instance acting merely as an agent of the state for the collection and payment of the tax levied by Section 28-3-184; as an agent for the county or municipality for the collection and payment of the tax levied by Section 28-3-190; as an agent for the county or municipality for collection and payment of the tax levied by Section 28-7-18; and as an agent for the state for collection and payment of the tax levied by Sections 28-3-200 to 28-3-205, inclusive.

(2) The manufacturer licensee shall keep and maintain all records required to be kept and maintained by manufacturer, wholesaler, and retailer licensees for the tax so levied except that manufacturers are not required to maintain name, address, or other personal demographic information for sales as provided in subsection (h).

(j) A manufacturer licensee engaged in the manufacture of beer in the state may donate and deliver up to two kegs up to 31 gallons of the manufacturer's beer to a licensed charitable special event operated by or on behalf of a nonprofit organization. Donations shall be taxed in accordance with state and federal laws and regulations. Any beer remaining at the conclusion of the charitable event shall be returned to the manufacturer for disposal.

(k) A manufacturer licensee engaged in the manufacture of table wine in the state may donate and deliver up to two cases of the manufacturer's table wine to a licensed charitable special event operated by or on behalf of a nonprofit organization. Donations shall be taxed in accordance with state and federal laws and regulations. Any table wine remaining at the conclusion of the charitable event shall be returned to the manufacturer for disposal." Section 11. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.