SB194 Alabama 2023 Session

Summary

Primary Sponsor

Steve Livingston

Republican

Session

Regular Session 2023

Title

Relating to alcoholic beverages; to amend Sections 28-3-1, 28-3A-3, 28-3A-21, and 28-3A-23, Code of Alabama 1975 and add Sections 28-3-208, 28-3A-9.1, and 28-3A-17.2 to the Code of Alabama 1975; to define a new category of low-alcohol content liquor beverages called mixed spirit beverages; to require all mixed spirit beverages, other than those distributed by the Alcoholic Beverage Control Board, to be distributed through a licensed wholesaler; to levy taxes upon the distribution of these beverages; to provide for licensure of retailers of mixed spirit beverages and set a fee for licensure; to add Chapter 8B to Title 28 of the Code of Alabama 1975; to require licensed importers, manufacturers, and suppliers of mixed spirit beverages to enter into exclusive franchise agreements with wholesalers; to exempt from the wholesaler franchise laws mixed spirit beverages distributed by the Alcoholic Beverage Control Board and sold at retail at ABC stores; and to make nonsubstantive, technical revisions to update the existing code language to current style.

Description

Existing law makes no specific provisions regarding the retail sale, wholesale, or tax on the sale of low-alcohol by volume content beverages from liquor. These beverages are not available for distribution through beer and table wine wholesalers.

This bill would define a new category of ready to drink mixed liquor beverages containing no more than 12.5 percent alcohol by volume called "mixed spirit beverages." This bill would require all mixed spirit beverages, other than those distributed by the Alcoholic Beverage Control Board, to be distributed through a licensed wholesaler and sold to licensed retailers in Alabama for on-premises and off-premises consumption.

This bill would require each importer and manufacturer of mixed spirit beverages to designate sales territories for each of its brands and enter into an exclusive franchise agreement with a licensed wholesaler for each sales territory.

This bill would set conditions and requirements for franchise agreements between suppliers and wholesale distributors of mixed spirit beverages, including provisions for the modification, termination, SB194 INTRODUCED cancellation, nonrenewal, or discontinuance of an agreement.

This bill would provide for the levy of a privilege or excise tax on mixed spirit beverages.

This bill would also make nonsubstantive, technical revisions to update the existing code language to current style.

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