Bill > SB217

This bill, titled "Mixed spirit beverages, providing for distribution, retail sale, and tax," introduces new regulations and taxes for "mixed spirit beverages," which are defined as single-serve alcoholic drinks containing liquor, packaged in approved containers no larger than 16 ounces, and with an alcohol content of no more than 7 percent. The bill mandates that all alcoholic beverage labels must be approved by the Alabama Alcoholic Beverage Control Board (the "board") and prohibits marketing or advertising that appeals to minors or is misleading. It also requires that alcoholic beverages for retail sale be displayed separately from non-alcoholic beverages, and for smaller establishments where separation is difficult, prominent signage indicating the presence of alcohol must be posted. The bill establishes a privilege or excise tax of two and five-tenths cents ($.025) per ounce on mixed spirit beverages, with the tax initially collected from wholesalers and ultimately intended to be borne by the consumer, with a portion of the tax revenue going to the State General Fund, the board for regulatory purposes, and the remaining portion distributed to counties and municipalities. It also outlines new licensing requirements for wholesalers and retailers of mixed spirit beverages, including a "limited mixed spirit beverage expanded retail license" that requires a secure age verification system. Furthermore, the bill creates a new Chapter 8B to regulate the distribution of mixed spirit beverages, establishing a three-tier system and requiring suppliers to sell only through licensed wholesalers who are granted exclusive sales territories, with provisions for compensation to wholesalers if their distribution agreements are terminated or not renewed without good cause. Finally, the bill makes conforming changes to existing laws to incorporate mixed spirit beverages into various licensing and regulatory frameworks.

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