HB521 Alabama 2025 Session

Summary

Primary Sponsor

Craig LipscombRepresentative

Republican

Session

2025 Regular Session

Title

Mixed spirit beverages, providing for distribution, retail sale, and tax

Summary

HB521 creates a new mixed spirit beverage category (up to 7% ABV) and overhauls Alabama’s licensing, distribution, labeling, and taxes for these drinks within a new three-tier regulatory framework.

What This Bill Does

It defines mixed spirit beverages as ready-to-drink drinks containing liquor, up to 7% alcohol by volume and no more than 16 ounces per container, and regulates their sale through licensed wholesalers to retailers (with some products sold through ABC Stores). It creates a comprehensive licensing system for manufacturers, importers, wholesalers, and retailers, including exclusive sales territories and distribution agreements, and adds new license types and fees. It imposes a statewide tax of 0.035 dollars per ounce on mixed spirit beverages, collected by wholesalers, with half of the revenue going to the state General Fund and the other half to fund regulatory/enforcement activities; a separate local tax of 0.002 dollars per ounce would go to counties or municipalities. It expands labeling, display, and age-verification rules, and adds additional programs and licenses (nonprofit events, food trucks, international speedways) with associated rules and fees.

Who It Affects

• Consumers in Alabama would access mixed spirit beverages through licensed wholesalers and retailers under new price and display rules, with age 21+ restrictions and labeling/display requirements.
• Industry participants and government bodies (manufacturers, importers, mixed spirit beverage wholesalers, retailers, and the Alabama ABC Board, plus counties and municipalities) would face new licenses, exclusive distribution agreements, fees, taxes, background checks, transfer rules, and regulatory oversight.

Key Provisions

• Mixed spirit beverages are defined as single-serve drinks containing liquor up to 7% ABV and in containers not larger than 16 ounces; beverages exceeding these limits are not considered mixed spirit beverages.
• A new licensing framework establishes licenses for manufacturers, importers, mixed spirit beverage wholesalers, and various retail licenses (including expanded retail for mixed spirit beverages) with specified fees and renewal rules; board authority to issue and regulate these licenses is expanded.
• Suppliers must designate exclusive sales territories for each brand and enter distribution agreements with licensed wholesalers; wholesalers distribute to licensed retailers or other wholesalers, with restrictions on termination (no-cause termination prohibited) and a framework to determine fair value if a supplier ends a distribution arrangement.
• A mixed spirit beverages excise/privilege tax of $0.035 per ounce is added to the price and collected by wholesalers, who remit the tax to the board; a separate local tax of $0.002 per ounce is collected by counties/municipalities, with revenue sharing and distribution rules specified, and the tax is in lieu of other state taxes on these beverages while not exempting general sales tax.
• Labeling and display rules require board approval of labels, separation of alcohol from nonalcoholic products, and signage, plus age-verification measures on licensed premises; background checks (including fingerprints) are required for license applicants, with costs borne by applicants.
• Additional licenses and programs are created, including nonprofit special events licenses, food/beverage trucks, international speedway licenses, and special event licenses, each with specific eligibility, fees, duration, and operational restrictions.

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

Subjects

Alcoholic Beverages & Tobacco