SB287 Alabama 2021 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Co-Sponsors

Gerald H. AllenTom ButlerSam GivhanSteve LivingstonDel MarshGreg J. ReedClay ScofieldLarry Stutts

Session

Regular Session 2021

Title

Alcoholic Beverage Control Board, phase out of retail sales of alcoholic beverages, alcoholic beverage sales and distribution of proceeds, Secs. 28-3-280 to 28-3-286, inclusive, repealed; Secs. 28-3-43, 28-3-53.1, 28-3-53.2, am'd.

Summary

This bill would phase out the Alabama ABC Board's retail liquor stores by 2026, shift to wholesale operations, and create a new off-premises retail license while reorganizing taxes and proceeds.

What This Bill Does

It requires the ABC Board to adopt rules to end retail liquor sales by September 30, 2026, closing state stores and retail operations. It creates a new retail license (up to $750/year) for off-premises liquor sales purchased from the board and allows certain existing board-retail licensees to continue off-premises sales, with the sale or transfer of those licenses prohibited. The bill preserves wholesale operations and other board functions, sets how liquor is taxed and marked, and changes how profits and taxes are distributed to state and local governments; it also repeals old retail liquor sections by the 2026 deadline.

Who It Affects

• ABC Board and its employees: must implement the phase-out, continue wholesale operations, adjust pricing/markup rules, and issue/ manage the new retail licenses.
• Board-retail licensees and potential new licensees: may continue off-premises liquor sales under new retail licenses; existing board retail licenses can’t be sold or transferred; local taxes on liquor and revenue distributions will change under the new system.

Key Provisions

• Require the ABC Board to phase out retail liquor sales and close all state-operated stores by September 30, 2026, while keeping wholesale and other duties.
• Create a new retail license for off-premises liquor sales purchased from the board, with annual fee not to exceed $750, and permit sale of unopened containers under that license.
• Allow certain existing board retail licensees to continue off-premises liquor sales, but prohibit the sale or transfer of those licenses.
• Continue wholesale liquor operations and all other functions (licensing, auditing, collection) for the board after retail phase-out.
• Establish markup rules, including a cap on wholesale markups (with conditions to fund remaining expenses and protect recipients) and a prohibition on increasing the markup above 20% after September 30, 2026.
• Treat taxes and distributions of liquor proceeds under the current system for pre-2026 retail sales, and under the board’s new markup rules for post-phase-out sales; preserve local tax collection and distribution provisions with specific base-year provisions for municipalities and counties.
• Repeal Sections 28-3-280 through 28-3-286 by September 30, 2026, and enact related amendments to Sections 28-3-43, 28-3-53.1, and 28-3-53.2.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverage Control Board