SB321 Alabama 2023 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

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 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 amend Sections 28-10-4, 28-10-5 and 28-10-6, Code of Alabama 1975, to provide further for the responsible vendors program; and to make nonsubstantive, technical revisions to update the existing code language to current style.

Summary

SB321 creates a new low-alcohol category called mixed spirit beverages, sets licensing and taxes for them, and updates the responsible vendors program to online training.

What This Bill Does

Defines mixed spirit beverages as single-serve drinks with up to 12.5% alcohol by volume and up to 16 ounces in a container. Requires most mixed spirit beverages (except those the ABC Board distributes) to move through licensed wholesalers to licensed retailers for on- and off-premises consumption, and establishes a 0.98 per 12-ounce tax on these beverages. Creates mixed spirit beverage wholesaler licenses and limited mixed spirit beverage expanded retail licenses with associated fees, and prescribes how tax revenue is divided among state funds, enforcement, and local governments. Shifts the responsible vendors program to be administered by the ABC Board online, updates training requirements, and includes nonsubstantive code style updates. The act becomes effective April 1, 2024.

Who It Affects

• Alcohol industry participants and local governments: manufacturers, importers, wholesalers, retailers of mixed spirit beverages, and county/municipal governments are affected by new licensing requirements, fees, distribution rules, tax collection duties, and revenue allocations.
• General public and consumers: residents will encounter a new mixed spirit beverage category, pay the new beverage tax, and be affected by updated responsible vendor training and labeling/advertising rules.

Key Provisions

• Defines mixed spirit beverage as a single-serve drink containing liquor, up to 12.5% ABV, in a container no larger than 16 ounces.
• All mixed spirit beverages not distributed by the ABC Board must be distributed through licensed wholesalers to licensed retailers for on- and off-premises consumption.
• Imposes a tax of 0.98 dollars per 12 fluid ounces (or fraction) of mixed spirit beverages, collected by wholesalers and allocated to state and local funds and enforcement, with specified distribution and discount provisions for timely payments.
• Creates a mixed spirit beverage wholesaler license (fees generally set in 28-3A-21) and requires wholesalers to obtain licenses to distribute these beverages, including warehouse-related fees.
• Allows limited mixed spirit beverage expanded retail licenses for certain existing license holders (table wine, beer, lounge/club/restaurant, special events) to sell mixed spirit beverages at retail for on- and/or off-premises consumption, with board-set fees and online issuance.
• Section 28-3A-21 and related sections set annual license fees for various license types and require payment before issue or renewal, with provisions for license transfers and renewals.
• Board may regulate labeling, advertising, and product packaging; board can deny labels deemed objectionable and require markings to prevent misperception of non-alcoholic products.
• Updates the responsible vendors program to online delivery, requiring certified vendor training and annual renewal, and authorizes enforcement mechanisms including non-law enforcement personnel for compliance.
• Effective date: April 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.