HB 543

Under existing law, manufacturers, wholesalers, and retailers of alcoholic beverages are restricted in their ability to have a financial or business interest with one another

This bill would allow a manufacturer, importer, or wholesaler to be a member, donor, director, or officer of a tax exempt nonprofit organization that holds a retail class license

Relating to alcoholic beverages; to amend Section 28-3-4, Code of Alabama 1975; to allow a manufacturer, importer, or wholesaler to be a member, donor, director, or officer of a tax exempt nonprofit organization that holds a retail class license.

Section 1

Section 28-3-4, Code of Alabama 1975, is amended to read as follows:

§28-3-4. (a) No manufacturer and no officer or director of any manufacturer shall at the same time be a distributor, wholesaler or retail dispenser retailer or an officer, director or stockholder or creditor of any distributor, wholesaler or retail dispenser retailer, nor, except as provided in this section, be the owner, proprietor or lessor of any place covered directly or indirectly by any distributor's or wholesaler's malt or brewed beverage liquor license. (b) No distributor or wholesaler and no officer or director of any distributor or wholesaler shall at the same time be a manufacturer or retailer or be an officer, director, stockholder or creditor of a manufacturer or retailer or be the owner, proprietor or lessor of any place covered by any other malt or brewed beverage or liquor license. (c) No licensee licensed under this chapter shall directly or indirectly own any stock of, or have any financial interest in, any other class of business licensed under this chapter.

(d) Except as provided in this section, no manufacturer, wholesaler or distributor shall in any wise manner be interested, either directly or indirectly, in the ownership or leasehold of any property or in any mortgage against the same for which a liquor or retail dispensers' retail license is granted, nor shall a manufacturer, wholesaler or distributor, either directly or indirectly, lend any moneys, credit or equivalent thereof to any retailer in equipping, fitting out or maintaining and conducting, either in whole or in part, an establishment or business operated under a liquor retail dispensers' retail license, excepting only the usual and customary credits allowed for returning packages or containers in which malt or brewed alcoholic beverages were packed for market by the manufacturer.

(e) Except as provided in this section no manufacturer shall in any wise manner be interested, directly or indirectly, in the ownership or leasehold of any property or any mortgage lien against the same, for which a distributor's or wholesaler's license is granted nor shall a manufacturer, either directly or indirectly, lend any moneys, credit or their equivalent to any distributor or wholesaler in equipping, fitting out or maintaining and conducting, either in whole or in part, an establishment or business where malt or brewed alcoholic beverages are licensed for sale by a distributor or wholesaler, excepting only the usual credits allowed for the return of packages or containers in which malt or brewed alcoholic beverages were originally packed for the market by the manufacturer.

(f) No distributor, wholesaler, or retail dispenser retailer shall in any wise manner, either directly or indirectly, receive any credit, loan, moneys or the equivalent thereof from any other licensee or from or through a subsidiary or affiliate of another licensee or from any firm, association, or corporation, except a banking institution, in which another licensee or any officer, director, or firm member of another licensee has a substantial interest or exercises a control of its business policy for equipping, fitting out, payment of license fee, or maintaining and conducting, either in whole or in part, an establishment or business operated under a distributor's, wholesaler's, or retail dispenser's retailer's license, excepting only the usual and customary credits allowed for the return of packages or containers in which malt or brewed alcoholic beverages were packed for the market by the manufacturer.

(g) The purpose of this section is to require a separation of the financial and business interest between the various classes of business regulated by this chapter, and no person or corporation shall by any device whatsoever directly or indirectly, evade the provisions of this section.

(h) Notwithstanding the foregoing, this section does not prohibit a manufacturer, importer, or wholesaler from being a member, donor, director, or officer of a nonprofit organization exempt from taxation under Section 501 of the Internal Revenue Code that holds a retail class license, regardless of the organization's purpose."

Section 2

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.