Senate Bill 217 Alabama 2026 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

2026 Regular Session

Title

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

Summary

SB217 would create a new mixed spirit beverages category (up to 7% ABV) and establish a comprehensive licensing, tax, and distribution framework for their sale in Alabama.

What This Bill Does

It defines mixed spirit beverages as ready-to-drink liquor with up to 7% alcohol by volume and sets a licensing system requiring licensed wholesalers to distribute these beverages to licensed retailers for on- and off-premises consumption (with certain ABC Board exceptions). It imposes a two-and-a-half cent per ounce excise tax on these beverages, collected through wholesalers and distributed to the state, counties, and municipalities, while maintaining a three-tier regulatory structure and general sales tax rules. It creates new license types and fees for wholesalers, retailers, and related activities (including nonprofit events, educational distilleries, government venues, and mobile food trucks), adds display and labeling rules, and strengthens enforcement with penalties for underage sales and for violations of licensing terms. It also establishes rules for exclusive brand territories, no-cause termination of distribution agreements, and additional regulatory authorities for supplier-wholesaler-retailer relationships, along with several ancillary licenses and district-specific provisions.

Who It Affects

• Group 1 affected and how: Consumers and local communities in Alabama—gain access to a new mixed spirit beverages category at licensed retailers, with age restrictions and potential price effects from the new tax and display requirements.
• Group 2 affected and how: Businesses and regulators—including manufacturers, wholesalers, retailers, and state/local authorities (ABC Board and counties/municipalities)—face new licensing structures, tax collection and distribution rules, exclusive distribution agreements, reporting duties, and enforcement mechanisms.

Key Provisions

• Defines mixed spirit beverages as single-serve liquor products up to 7% ABV in containers no larger than 16 ounces.
• Requires most mixed spirit beverages to be distributed through licensed wholesalers to licensed retailers for on- and off-premises consumption (with exceptions for ABC Board stores).
• Imposes a state excise tax of $0.025 per ounce on mixed spirit beverages, collected by wholesalers and distributed to the state General Fund, the ABC Board for enforcement, and local governments.
• Establishes exclusive sales territories for brands and requires exclusive distribution agreements between suppliers and wholesalers, with no-cause termination or nonrenewal provisions and a process to determine fair market value if relationships end.
• Creates new licenses and fees (e.g., mixed spirit beverage wholesaler license, expanded retail licenses) and expands the three-tier system to include additional license types (nonprofit special events, educational tourism distilleries, government venues, etc.).
• Imposes penalties for retailers selling to individuals under 21 and requires compliant labeling, display, age-verification, and recordkeeping rules; authorizes inspections and potential fines or license revocation for violations.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverages & Tobacco