SB298 Alabama 2018 Session

Summary

Primary Sponsor

Arthur Orr Senator

Republican

Session

Regular Session 2018

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, 28-3-40, 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28-3A-11, 28-3A-12, 28-3A-19, 28-3A-21, 28-3A-22, 28-7-16 am'd.; Secs. 28-3-74, 28-3-280 to 28-3-286, inclusive, repealed on October 1, 2012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, but not 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, 2023, 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 into which proceeds from the sale of fixed assets, equipment, and property would be deposited and provide that moneys in the fund shall be appropriated annually to pay phase-out costs, including employee benefits.

This bill would establish an application, review, appeal, and investigation process for licensees.

This bill would provide for the sale, transfer, and surrender of licenses; provide that persons possessing the authority to sell liquor for off-premises consumption on the date of the introduction of this bill may continue to operate according to the existing 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 the board; provide for the distribution of proceeds; provide that liquor sold by the board shall be subject to existing taxes; provide for the redistribution of certain tax proceeds; provide for the reallocation of 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 levy a fee for a retail license and allow for a fee increase for licenses issued by the board.

This bill would create the Retailer Advisory 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; advise the board on distribution, warehousing, and licensee policies; and provide for the selection and appointment of a nonvoting member to the board.

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

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Subjects

Alcoholic Beverage Control Board