SB292 By Senators Orr and Melson RFD Fiscal Responsibility and Economic Development Rd 1 24-FEB-16

SYNOPSIS: Under existing law, liquor wholesale licensees may sell liquor at wholesale to the Alabama Alcoholic Beverage Control Board or as authorized by the board, other than to a retail licensee of the board. Under existing law, state liquor stores operated by the Alabama Alcoholic Beverage Control Board and certain licensed private retail stores may sell liquor at retail. Under existing law, retail licensees of the board must purchase liquor from the board for resale.

This bill would require the Alabama Alcoholic Beverage Control Board to phase out retail sale of alcoholic beverages by the board prior to October 1, 2021 but continue all other functions prescribed by law; require the board to obtain the best available price for fixed assets, equipment, and property; and require the Department of Economic and Community Affairs to provide certain technical assistance.

This bill would create a special fund in which proceeds of the sale of fixed assets, equipment, and property would be placed and would provide moneys in the fund to be used to pay phase-out costs, including employee benefits.

This bill would establish an application, review, appeal and investigation process for licensees.

This bill would provide for the sale, transfer, and surrender of licenses; provide that persons possessing authority to sell liquor for off-premises consumption on the date of introduction of this bill could continue to operate according to the license; and prohibit all other persons from selling liquor for off-premises consumption.

This bill would provide for the markup on all alcohol sold by this board and provide for the distribution of proceeds; provide that liquor sold by the board would be subject to existing taxes and provide for the redistribution of certain tax proceeds; reallocate a portion of the proceeds of existing taxes on table wine; and provide for the distribution of local sales taxes on the sale of liquor by retail licensees.

This bill would require the board to implement a hiring freeze of certain employees; and grant certain benefits to displaced employees, including additional consideration for staffing retail operations during the phase-out.

This bill would levy a fee for a retail license and allow for an increase of fees for licenses issued by the Alabama Alcoholic Beverage Control Board.

This bill would require revocation or suspension of licences issued by the board upon proof of selling alcohol to a minor.

This bill would create the Products Selection Review Committee and would require the committee to review product selection decisions of the board and report irregularities and violations to the Attorney General and the State Ethics Commission.

This bill would provide for the distribution of certain payments delayed for inventory purposes; require the board to convert to an inventory bailment system; and permit the board to enter contracts for certain warehousing functions.

A BILL TO BE ENTITLED AN ACT

To amend Sections 28-1-4, 28-2-22, 28-3-43, 28-3-53.1, 28-3-53.2, 28-3-202, 28-3-205, 28-3-207, 28-3-241, 28-3A-11, 28-3A-12, 28-3A-19, 28-3A-20, 28-3A-21, 28-3A-22, 28-3A-24, and 28-7-16 of the Code of Alabama 1975; regarding the sale of alcoholic beverages and the Alcoholic Beverage Control Board, requiring the Alabama Alcoholic Beverage Control Board to phase out operations concerning the retail sale of alcoholic beverages and granting these privileges to licensees of the board; granting certain powers to the board to facilitate the phase-out process, including the establishment of a fund from which certain moneys may be expended for phase-out costs; establishing application requirements for retail licenses and identifying licensee qualifications and disqualifications; providing for annual retail license fees and annual renewal of retail licenses; providing that each retail license shall expire annually; providing that license fees may be increased by the board; requiring approval for the sale, assignment, or transfer of retail licenses and for the surrender of retail licenses; providing that certain existing retail licensees of the board may continue to sell liquor for off-premises consumption and prohibiting the sale or transfer of these licenses; providing for the markup on alcohol sales and the distribution of proceeds; providing for the reallocation of the proceeds of the tax on table wine; providing certain consideration, treatment, and benefits for displaced employees; altering certain license fees and providing for license fees for licensees; specifying remaining functions of the board; creating the Products Selection Review Committee and prescribing its duties; requiring the board to revoke or suspend license upon certain proof of selling to a minor; requiring the board to convert to an inventory bailment system; providing for the distribution of certain payment delayed for inventory purposes; permitting the board to enter contracts for warehousing functions; and repealing Sections 28-3-74, and 28-3-280 through 28-3-286 of the Code of Alabama 1975.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. For the purposes of this act, the following terms have the following meanings unless the context clearly indicates otherwise:

(1) APPLICANT. A person who applies for a retail license or who seeks the approval of the board to purchase or otherwise acquire a retail license from a retail licensee in accordance with this act.

(2) APPLICATION. The form prescribed by the board and filed with the board by a person applying for a retail license.

(3) BOARD. The Alabama Alcoholic Beverage Control Board.

(4) RETAIL LICENSE. A retail license permitting the purchase of liquor from the board and the retail sale of the liquor in original unopened containers for off-premises consumption.

(5) EXECUTIVE OFFICER. The president of an applicant or retail licensee, a vice-president of an applicant or retail licensee in charge of a principal business unit or division, or any other officer of an applicant or retail licensee who performs a policy-making function.

(6) LIQUOR. The definition prescribed in Section 28-3-1 of the Code of Alabama 1975.

(7) PERSON. A natural person, corporation, partnership, association, or other type of business organization.

(8) RETAIL LICENSEE. The holder of a retail license.

(9) RETAIL OUTLET. A specific location where liquor may be lawfully sold by a retail licensee under this act.

Section 2. (a) The Alabama Alcoholic Beverage Control Board shall phase out the retail sale of alcoholic beverages prior to October 1, 2021, and shall by that date close all state liquor stores and all retail operations and functions. The phase out shall be on a staggard basis determined by the Alabama Alcoholic Beverage Control Board based on the following factors in order of priority: (1) the lease end date, (2) the profitability, and (3) the proximity of surrounding state operated liquor stores. At least twenty percent of state operated liquor stores shall be closed by October 1 each year beginning October 1, 2017.

(b)(1) Notwithstanding Article 6 (commencing with Section 41-16-120) of Chapter 16 of Title 41, Code of Alabama 1975, or any other law, the board, prior to October 1, 2021, shall sell, liquidate, transfer, and dispose of all fixed assets, equipment, and property of state liquor stores and retail operations of the board. Any fixed assets, equipment, and property not sold by the board by October 1, 2021, shall be sold by the board as soon as possible.

(2) The board shall obtain the best available price for the fixed assets, equipment, and property.

(3) The Department of Economic and Community Affairs shall provide technical assistance to the board in performing the functions required by this section relating to the disposal of fixed assets, equipment, and property.

(4) When the board closes a state liquor store, the remaining merchandise inventory in the store shall be disposed of in one of the following manners:

a. Transferred directly to another state liquor store if financially advantageous to the state.

b. Returned to the warehouse of the board or the warehouse operated for the board.

c. Sold to a licensee of the board at a reasonable price, including a discounted price if this method of disposition is the most financially advantageous to the state. The proceeds of the sale of merchandise inventory in this manner shall be treated the same as the proceeds of the sale of other liquor.

Section 3. (a) The Alcoholic Beverage Control Board Retail Phase-Out Fund is created in the State Treasury. The board shall pay all proceeds from the sale of the fixed assets, equipment, and property into the fund.

(b) The moneys in the fund shall be used by the board to pay expenses directly related to the closing of state liquor stores and retail operations, including, but not limited to, the payment of all employee costs associated with the phase-out of retail operations of the board. Moneys in the fund shall be allocated by warrants drawn on the State Comptroller upon requisition signed by the members of the board. If at any time there are not sufficient moneys in the fund to pay these expenses, the board shall pay the expenses from other funds appropriated to the board. When sufficient moneys are in the Alcoholic Beverage Control Board Retail Phase-Out Fund, the board shall be repaid from the fund for these amounts expended.

(c) Any remaining moneys in the fund after all qualified expenses have been paid shall be paid into the State General Fund.

Section 4. (a) The board shall terminate all leases associated with state liquor stores and the retail operations as these stores and operations are closed. The board shall not enter into a lease as the lessee in regard to any property, building, or facility used for retail operations of the board. The board shall assist lessors of existing state liquor stores in arranging lease agreements with licensees of the board.

(b) Neither the board nor a public officer, including, but not limited to, the Governor, shall have authority to perform any of the following functions and any provision or portion of the Alabama Alcoholic Beverage Control Act, Title 28 (commencing with Section 28-1-1) of the Code of Alabama 1975 or other law granting such authority shall be considered repealed:

(1) Execute, by action or lack of action, any provision of an existing lease relating to state liquor stores or retail operations of the board which would renew or extend the term of the lease or incur a new obligation upon the board or the state.

(2) Execute an extension or renewal of an existing lease relating to state liquor stores or retail operations of the board.

(3) Execute a new lease relating to state liquor stores or the retail operations of the board.

(c) The board shall accept and enforce any option in an existing lease relating to state liquor stores or retail operations permitting termination of the lease, including, but not limited to, any of the following:

(1) Options permitting the board to terminate a lease if certain existing law or provisions therein are repealed.

(2) Options permitting the termination of the lease if the Legislature fails to appropriate sufficient funds for the board to make rental payments.

(3) Options permitting the termination of a lease if the lease constitutes a debt of the state in violation of Section 213 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.

Section 5. The board shall have all the following duties:

(1) Prescribe application forms for persons desiring to acquire retail licenses and adopt an orderly procedure and timetable for investigating, processing, and approving applications.

(2) Develop a form of retail license to be issued to each retail licensee under this act.

(3) Disseminate to the public information relating to the issuance of retail licenses.

(4) Enforce the provisions of this act.

(5) Adopt, amend, or repeal rules of the board to conform with the requirements of this act. These rules shall be adopted, amended, and repealed in accordance with the Administrative Procedure Act, Chapter 22 (commencing with Section 41-22-1) of Title 41 of the Code of Alabama 1975.

Section 6. (a) Each applicant shall file an application with the board, stating under oath each of the following:

(1) If the applicant is an individual, his or her name and residence address.

(2) If the applicant is a corporation, limited partnership, partnership, association, or other business organization, the name and business address of the applicant; the state of its incorporation or organization; the names and residence addresses of each executive officer, director, or general partner of the entity; and the names and residence addresses of any person owning, directly or indirectly, at least 20 percent of the outstanding stock of or partnership interests in the applicant.

(3) If the applicant holds any licenses, the number currently held, and the number of retail outlets owned.

(4) That the applicant has never been convicted of a felony or other crime involving moral turpitude, or a crime involving the sale or dispensing of alcoholic beverages in this state, in any other state, or in any federal court; and if the applicant is a corporation, limited partnership, partnership, association, or other business organization, that none of its executive officers, directors, general partners, or any person owning, directly or indirectly, at least 20 percent of the outstanding stock of or partnership interests in the applicant, has been so convicted.

(b) An applicant shall provide the board any additional information requested.

(c) Whenever a change occurs in information provided to the board, including, but not limited to, information concerning a criminal conviction, the change shall immediately be reported to the board in the same manner as originally provided.

(d) No applicant shall be issued or eligible to hold at any time a retail license under this act in either of the following instances:

(1) The applicant has been convicted in this state, in any other state, or in any federal court of a felony, a crime involving moral turpitude, or a crime involving the sale or dispensing of alcoholic beverages.

(2) An executive officer, director, or general partner of the applicant, or a person owning, directly or indirectly, at least 20 percent of the outstanding stock of or partnership interests in the applicant, has been convicted in this state, in any other state, or in any federal court of a felony, a crime involving moral turpitude, or a crime involving the sale or dispensing of alcoholic beverages. Prior to revoking a license under this subsection, the board shall give the executive officer, director, general partner, or owner of stock or partnership interest who has been convicted of such a crime a reasonable time to vacate the position or sell their interests. If the position is vacated or the interest is sold to a person approved by the board within that time period, the entity may continue to hold the license.

Section 7. (a) Upon receipt of an application for a retail license and such supplemental information as the board may require, the board shall conduct an investigation of an applicant.

(b) Upon the completion of the investigation of an applicant, the board shall inform the applicant in writing whether the application has been approved or denied, and shall post a copy of the decision in the office of the board.

(c) When an application is denied, the board shall provide the applicant the reasons for the denial, including specific findings of fact, and the applicant shall be entitled to a hearing before the board as provided in Section 28-3A-24 of the Code of Alabama 1975.

(d) An applicant shall provide all information required by this act in the form specified by the board and shall satisfy all requests for information pertaining to qualifications. By filing an application, an applicant shall waive any liability of the board for any damages resulting from a disclosure or publication of any material or information acquired during inquiries, investigations, or hearings unless the board acted in an unreasonable or reckless manner.

Section 8. Any person who gives a person any thing of value to induce the other to refrain from operating an outlet authorized under a retail license is guilty of a misdemeanor and, upon conviction, shall be fined not more than ten thousand dollars ($10,000), and, in addition, shall be subject to a civil penalty payable to the commissioner of not more than one million dollars ($1,000,000).

Section 9. (a) The annual retail license period shall be from October 1 to September 30. The annual retail license fee for a retail license shall be the sum specified in Section 28-3A-21 of the Code of Alabama 1975. The annual retail license fee for the initial year of issuance shall be prorated based on the number of days remaining between the date of issuance and the following September 30.

(b) All retail licenses shall expire on September 30 of each year and may be renewed only upon the submission to the board of the same information required for the issuance of the license and any additional information requested by the board. The information shall be submitted on forms and by the date prescribed by the board. The payment to the board of the applicable annual retail license fee shall accompany this information.

(c) The board may suspend or revoke a license in the manner prescribed by law. No person may sell liquor at a retail outlet if the retail license applicable to the outlet has been suspended, revoked, or expired. If a license has been revoked or has expired, the board shall proceed to reissue the retail license for the remaining license period.

(d) If the area or a portion of the area in which a holder of a license prohibits the retail sale of liquor, the licensee shall not be permitted to sell liquor in that area or that portion of the area. If, within the license period, the area or the portion of the area subsequently permits the sale of liquor, the licensee may resume the retail sale of liquor as authorized by the license for the remaining license period. If a licensee is prohibited from selling liquor, the licensee shall not be entitled to a refund of any portion of the annual license fee.

Section 10. (a) No person may purchase or otherwise acquire a retail license unless the board has first approved of the qualifications of the person to hold the retail license, which qualifications shall be the same as those required under Section 6.

(b) No person may sell, assign, or otherwise transfer a retail license without the prior written approval of the board. For purposes of this section, the merger of a retail licensee or the sale of more than 50 percent of the outstanding stock of or partnership interests in the retail licensee shall be deemed to be a sale, assignment, or transfer of a retail license. Any license sold, assigned, or transferred shall only remain effective for the remainder of the license period.

Section 11. A retail licensee may surrender a retail license to the board at any time. The board shall then proceed to reissue the retail license for the remaining license period.

Section 12. (a) In addition to the licensees under this act, only licensees possessing authority on the date this act was introduced into the Legislature of Alabama to sell liquor in original unopened containers at retail for off-premises consumption may continue to sell liquor in original unopened containers at retail for off-premises consumption according to the terms of the license on the date of issuance to the licensee. Notwithstanding any other law, these licensees may annually renew this license with this privilege. Notwithstanding any other law, these licensees may not sell or transfer the license.

(b) Retail licenses and those licenses referred to in subsection (a) shall be the only types of licenses issued by the board authorizing the sale of liquor in original unopened containers at retail for off-premises consumption.

(c) A retail licensee or any other person may sell beer and table wine upon obtaining the proper license as presently required by law.

Section 13. Alcohol sold at retail in stores operated by the Alabama Alcoholic Beverage Control Board prior to October 1, 2021 shall be subject to the tax and markup presently provided by law and the proceeds of that tax shall be distributed as presently provided by law. Alcohol sold by the board after retail stores have been phased-out shall be subject to the markup provided in Section 28-3-53.2.

Section 14. (a)(1) This act shall not be construed as prohibiting a municipality from collecting municipal sales taxes on liquor sold by any retail licensee of the board, including, but not limited to, a retail licensee at the same rate levied by the municipality on the sales of other tangible property.

(2) If a local law allocated a portion of sales tax proceeds received by the municipality pursuant to Section 28-3-280 to Section 28-3-286, inclusive, Code of Alabama 1975, the same amount of sales tax proceeds received by the municipality in the base year from sales taxes on the sale of liquor in original unopened containers by licensees of the board for off-premises consumption shall be identically allocated at the same intervals by the municipality until otherwise provided by local law. Any remaining amounts collected by the municipality shall be distributed as provided by general or local law.

(3) For the purposes of this subsection (a), the last full state tax year prior to the effective date of this act shall be referred to as the base year.

(b)(1) This act shall not be construed as prohibiting a county that is authorized to levy a sales tax, in addition to the tax authorized by Section 40-12-4 of the Code of Alabama 1975, from collecting the county sales tax on the retail sale of liquor in original unopened containers for off-premises consumption by a licensee of the board at the same rate levied by the county on the sales of other tangible property. This act shall not be construed as granting this taxing authority to a county.

(2) If a local law allocated a portion of sales tax proceeds received by the county pursuant to Section 28-3-280 to Section 28-3-286, inclusive, Code of Alabama 1975, the same amount of sales tax proceeds received by the county on the sale of liquor in original unopened containers for off-premises consumption by a licensee of the board shall be identically allocated at the same intervals by the county until otherwise provided by local law. Any remaining amounts collected by the county shall be distributed as provided by general or local law.

(3) For the purposes of this subsection (b), the last full state tax year prior to the effective date of this act shall be referred to as the base year.

Section 15. (a) Upon the effective date of this act, the board shall implement a hiring freeze on the employment of new employees for the board's retail operations. This hiring freeze shall continue until October 1, 2021. If an essential position must be filled during the hiring freeze period, the board shall fill the position with a displaced retail employee, if the employee is qualified. If a displaced retail employee is determined unqualified for the essential position, the employee may request the Director of the State Personnel Department to determine if the employee is qualified. Upon request, the director shall make the determination and notify the employee and the board. If the director determines the employee is qualified, the board shall offer the position to the employee. If there are no displaced retail employees qualified to fill an essential position, the board may contract with an individual to fill the essential position during the hiring freeze period. The employment contract shall not extend beyond September 30, 2021. The board shall fill nonessential positions with displaced employees of the retail operations of the board as provided in subsection (e).

(b) In order to insure the efficient and effective operation of the retail operations of the board during the phase-out period, the state shall enter into contracts with employees involved in the retail operations of the board. For the additional consideration tendered by these employees in agreeing to provide necessary staffing of the retail operations during the phase-out period and until the date of termination of employment with the board, the state shall agree to pay the employee additional compensation in a lump sum in an amount equivalent to three months of annual salary. Payment to these employees for the rendering of these additional services shall be on the same date as payment of final salary owed. Moneys in the fund established in Section 3 shall be used for these payments.

(c) The board shall locate displaced employees of a closed state liquor store in an open state liquor store requested by the employee if feasible.

(d) The board may permit displaced employees of the retail operations to work part-time.

(e) The board shall permit displaced employees of the retail operations to transfer to other board operations, if feasible.

(f) Displaced employees of the retail operations of the board, subject to state law, may transfer to other positions within the state personnel system and shall be given preference if qualified.

(g) Upon authorization of the State Personnel Director, a state Merit System employee who loses his or her job as a direct consequence of this act may be added to any certification for employment for any register on which the employee's name appears for a period of two years following his or her layoff date. An appointing authority who passes over such a displaced employee shall file in writing with the Director of the State Personnel Department the reason for passing over the displaced employee. The written reason shall become a part of the file of the displaced employee, but shall only be available for review by the displaced employee.

(h) A licensee of the board who employs full-time, for a period of 12 consecutive months or longer, a displaced state Merit System employee of the board who lost his or her job as a direct consequence of this act, as determined by the Director of the State Personnel Department, shall be given a 20 percent discount on license and permit fees collected by the board for each complete year the displaced employee is employed full-time. No licensee may receive a discount for more than five years. The board shall require necessary verification of such employment.

Section 16. (a) The board shall continue to perform all other functions required by law, including, but not limited to, the wholesale sale of liquor, licensing, enforcement, audit and collection.

(b) The enforcement operations shall be under the direct control of the administrator of the board.

Section 17. (a) The board shall readily supply to a licensee any liquor product requested by the licensee if the product conforms to the requirements of federal and state law.

(b) The board shall negotiate the best possible purchase price for all liquor obtained by the board.

(c) The board shall sell liquor to a licensee at a price equal to the purchase price of the liquor negotiated by the board plus freight and markup.

Section 18. (a) The Products Selection Review Committee is established. The committee shall be composed of five members. The President of the Senate shall appoint two licensees, or the executive officer of the licensee, to the committee. The Speaker of the House of Representatives shall appoint two licensees, or the executive officer of the licensee, to the committee. The Governor shall appoint one resident of the state to the committee who shall represent the interests of consumers. Members of the committee shall serve at the pleasure of the appointing authority. Members shall serve until a successor is named and assumes the office.

The membership of the committee shall be inclusive and reflect the racial, gender, geographic, urban/rural, and economic diversity of the state. The committee shall annually report to the Legislature by the second legislative day of each regular session the extent to which the appointing authorities have complied with the diversity provision of this act.

(b) The committee shall meet quarterly, and at other necessary times as determined by the committee. A majority of the members of the committee shall constitute a quorum. The board shall provide clerical and technical assistance to the committee and necessary office space.

(c) The committee shall review the policies and procedures of the board concerning the availability of products offered to licensees of the board. The committee shall review prices charged by the board for products sold to licensees. The committee shall also review any complaint filed with the board or the committee regarding the availability of liquor offered to licensees of the board, including, but not limited to, complaints regarding the failure of the board to readily supply requested liquor products as required by subsection (a) of Section 17. The members of the board and employees of the board shall supply the committee with all requested information regarding product selections, offerings, availabilities, and pricing.

(d) Any irregularity or possible violation of law discovered by the committee concerning product selections, offerings, availability, and pricing shall be immediately reported by the committee to both of the following entities:

(1) The Attorney General, who shall take proper action to ensure the laws of the state are enforced.

(2) The State Ethics Commission. The report of the committee shall be in the form of a complaint, as required in Section 36-25-4 of the Code of Alabama 1975, so that the State Ethics Commission, pursuant to law, shall commence an investigation regarding the irregularity or possible violation of law.Section 19. Sections 28-1-4, 28-2-22, 28-3-43, 28-3-53.1, 28-3-53.2, 28-3-202, 28-3-205, 28-3-207, 28-3-241, 28-3A-11, 28-3A-12, 28-3A-19, 28-3A-20, 28-3A-21, 28-3A-22, 28-3A-24, 28-3A-26, and 28-7-16 of the Code of Alabama 1975, are amended to read as follows:

§28-1-4.

"(a) The words and phrases used in this section shall have the meanings ascribed to them in Section 28-3-1 and any acts amendatory thereof, supplementary thereto or substituted therefor.

"(b) It shall be unlawful for common or permit carriers, operators of trucks, buses, or other conveyances or out-of-state manufacturers or suppliers to make delivery of any alcoholic beverage from without the State of Alabama to any a person, association, or corporation within the state, except to the Alabama Alcoholic Beverage Control Board and to manufacturers, importers, wholesalers, and warehouses, and other persons or entities licensed by the Alabama Alcoholic Beverage Control Board to receive the alcoholic beverages so delivered.

"(c) Any A violation of subsection (a) of this section shall be a misdemeanor, punishable as provided in paragraph (1) of subsection (b) of Section 28-3A-25.

"(d) All laws or parts of law which conflict or are inconsistent with this section are hereby repealed, provided, however, the provisions of Section 28-1-3 are excluded.

§28-2-22.

"(a) If the majority of the voters in any a county approve the sale and distribution of alcoholic beverages under this article as provided in Section 28-2-21, the sale of alcoholic beverages in such county shall be governed by the following conditions:

"(1) Within 90 days after the affirmative vote of the voters of a county, each governing body of any an incorporated municipality within such county may vote to exclude the sale of alcoholic beverages within its limits as provided for in this article. If the governing body does not take such action 90 days after the affirmative election, the provisions of this article shall apply for a period of 10 years, after which the municipality shall again have 90 days to exclude said the municipality. Should a municipality choose to exclude the application of this article from its limits, it may, by its own action, include the municipality under the provisions of this article at any subsequent time for a period of 10 years and, after said the 10-year period, shall have 90 days to continue or discontinue its applicability. A municipality may, within the 90-day period, submit the decision on the applicability of this article to its voters by a special election, said the election being binding on the governing body.

"(2) The governing body of any a county which has adopted the special method as provided in Section 28-2-21 may from time to time vote to exclude the sale of alcoholic beverages within all or any part of its unincorporated areas, but if a municipality annexes any an unincorporated area, that area shall be subject to the rules of the municipality with regard to the sale and distribution of alcoholic beverages.

"(3) Only nonrefrigerated malt beverages may be sold in any area in the county.

"(4) Spirituous or vinous liquors may only be sold at stores operated by the Alabama Alcoholic Beverage Control Board or as provided by general law.

"(5) Possession of alcoholic beverages in any an area in a county where their sale has not been legalized is prohibited.

"(6) The consumption of alcoholic beverages on the premises where sold or in any a public place is prohibited.

"(b) Any A person who violates any provision of this section shall be deemed guilty of a misdemeanor.

§28-3-43.

"(a) The functions, duties, and powers of the board shall be as follows:

"(1) To buy, manufacture, and sell at wholesale alcoholic beverages and to have alcoholic beverages in its possession for sale at wholesale, as defined and enumerated in this chapter and by general law, and to have alcoholic beverages in its possession for sale at retail at any time prior to October 1, 2021.

"(2) To control the possession, sale, transportation, and delivery of alcoholic beverages as enumerated and defined in this chapter and by general law.

"(3) To determine the localities within which any a state operated liquor store shall may be established and operated and the location of such the state operated liquor store at any time prior to October 1, 2021. No state operated liquor store shall be established in and neither the board nor any other person may legally buy, manufacture, or sell alcoholic beverages in any a county which has voted in the negative in any an election called as provided in Chapter 2 of this title for determining the said issue unless and until said the county has at a subsequent similar election voted in the affirmative. The board shall have the power at any time prior to October 1, 2021, to establish and maintain state operated liquor stores for the sale of liquors as defined in this chapter; provided, that municipalities. Municipalities may by proper zoning ordinances establish zones or districts within which such liquor stores may or may not be established; provided further, that the. The number of state operated liquor stores in any a municipality shall be limited to two such stores for municipalities of 25,000 population or less according to the last or any subsequent federal census and, in municipalities having more than 25,000 population, such additional stores as the board, in its discretion, may determine.

"(4) To make provision for the maintenance of warehouses for alcoholic beverages and to control the delivery of alcoholic beverages to and from such warehouses and the keeping of the same therein. The board, by competitive bid as provided in Chapter 16 of Title 41 of the Code of Alabama 1975, may enter into contracts with private entities for the receipt, storage, delivery, or distribution, or any combination thereof, of alcoholic beverages held by the board. The board shall supervise and maintain control over the actions of such a private contractor to ensure the laws of this state are properly enforced.

"(5) To operate distilleries and to manufacture alcoholic beverages if, in the opinion of the board, the purposes of this chapter can be thereby promoted. The price of all spiritous and vinous liquors dispensed by the board shall be fixed by the board as required by general law, and the location of state operated liquor stores shall not be adjacent to schools or churches or in a neighborhood which is exclusively residential. Neither the board nor any a state store operated by it shall in any manner advertise its wares for sale.

"(6) To appoint, subject to the provisions of the Merit System and other laws, every officer, agent, inspector, investigator, and employee, in accordance with the qualifications specifically set out in this chapter, required for the operation of the business of said the board,; commission such the agents, inspectors, or investigators as necessary to make arrests and execute search warrants and have the same authority as designated to peace officers as now authorized by law,; assign all employees their official positions and titles, define their respective duties and powers, require them or any of them to give bonds payable to the state in such penalty as shall be fixed by the board; and engage the services of experts and persons engaged in the practice of a profession.

"(7) To control the manufacture, possession, sale, consumption, importation, use, and delivery of liquor, alcohol, and malt and brewed beverages in accordance with the provisions of this chapter and general law and to fix the wholesale price of liquor as required by general law and the retail prices at which liquor shall be sold at Alabama state operated liquor stores. The board shall require each Alabama manufacturer and each nonresident manufacturer of distilled liquors selling distilled liquors to the board to make application for and be granted a permit by the board before distilled liquors shall be purchased from such the manufacturer. The board before issuing such the permit shall collect from each applicant a permit fee of $15.00 fifteen dollars ($15), which sum shall be paid annually thereafter on application. In the event that any such a manufacturer shall, in the opinion of the board, sell sells distilled liquors to the board through another person for the purpose of evading this provision relating to permits, the board shall require such the person before purchasing distilled liquors from him or her or it to take out a permit and pay the same fee as hereinbefore is required to be paid by such the manufacturer. All These permit fees so collected shall be paid into the State Stores General Fund.

"(8) To grant, issue and suspend, or revoke for cause liquor licenses and alcohol permits as provided in this chapter and by general law.

"(9) To grant, issue and suspend, or revoke for cause malt or brewed and vinous beverages licenses as provided in this chapter.

"(10) To lease, and furnish, and equip such buildings, rooms, and other accommodations as shall be required for the operation of this chapter. To determine the nature, form, and capacity of all packages to be used for containing liquor, alcohol, or malt or brewed beverages to be kept or sold under this chapter and to prescribe the form and contents of all labels and seals to be placed thereon.

"(11) To purchase from time to time the necessary stamps, crowns, or lids, in a quantity sufficient for a period not to exceed six months, for identifying each article sold or distributed by or through the said state operated liquor stores or a licensee of the board. All liquors, vinous beverages, and alcohol sold or distributed by the board or any a licensee of said the board shall be stamped or endorsed in such characteristic way or manner to be determined by the board as shall clearly indicate that it has been dispensed or regulated by the board, and all such liquors, vinous beverages, or alcohol not containing such label shall be contraband and subject to forfeiture as other contraband liquors.

"(12) To require all wholesalers who make sales of alcoholic beverages of any kind as defined in this chapter to any a state operated liquor store or other authorized licensee to forward, when the shipments of such the alcoholic beverages are made, to the board an invoice setting out the quantities of beverages purchased, and the price quotation showing at what price such beverages were sold and such invoice and quotation to be placed on record in the records of the Alcoholic Beverage Control Board of the State of Alabama and to be held for a period of not less than 18 months.

"(b) The Alcoholic Beverage Control Board shall be subject to regular examinations by the Examiners of Public Accounts the same as all other state agencies.

§28-3-53.1.

"(a) There shall be no distribution of any taxes collected on alcoholic beverages sold by the Alabama Alcoholic Beverage Control Board or of any funds distributed as net profits by said board for at least 25 days beginning October 1, 1983, for at least 55 days by September 30, 1984, for at least 85 days by September 30, 1985, for at least 115 days by September 30, 1986, for at least 120 days by September 30, 1987, and thereafter until October 1, 2021, from the close of the month in which the said taxes or said funds are realized. The moneys so realized are intended for use by said the board for inventory purposes. This subsection shall be inoperative after September 30, 2021.

"(b) Any funds accumulated as working capital under Section 28-3-74(d) shall be distributed to the several beneficiaries on the same basis as withheld on the next distribution of profits to such beneficiaries by the Alabama Alcoholic Beverage Control Board after October 1, 1984.

"(b) Effective October 1, 2021, the board shall maintain merchandise inventory by means of a bailment system.

"(c) Any taxes previously collected and maintained in the working inventory capital fund as of July 1, 2021, shall be transferred to the State General Fund. Any additional taxes collected but not distributed as of October 1, 2021, pursuant to subsection (a) of this section shall first be distributed in the same manner and in the amounts due for the month of October 2021, to all current tax recipients and the remainder shall be transferred to the State General Fund no later than January 31, 2017.

§28-3-53.2.

(a) The word board, wherever used in this section, shall mean the Alabama Alcoholic Beverage Control Board provided for in Chapter 3, Title 28. The term mark up, wherever used in this section shall mean the percentage amount added to cost plus freight on spirituous or vinous liquors sold by the board, exclusive of taxes heretofore levied with respect thereto.

(b) Until September 30, 2021, the The total amount of the additional mark up on cost of merchandise, levied by the Alcoholic Beverage Control Board subsequent to June 30, 1983, shall be designated to the credit of the General Fund of the state.

(c) Until September 30, 2021, the The board shall be prohibited from increasing the mark up on wholesale case lot sales of liquor above 16.99 percent of the cost plus freight subsequent to December 1, 2004.

(d) Effective October 1, 2021, the markup on wholesale case lot sales of liquor shall be 16.99 percent of the cost plus freight of which 15.99 percent shall be designated to the credit of the General Fund of the state, and 1.0 percent shall be paid into the Treasury of the State and designated as follows:

(1) 30.5 percent to the credit of the State Department of Human Resources;

(2) 13.8 percent to the credit of the wet counties of the state and shall be divided equally among each of said counties and paid into their respective general funds;

(3) 1.4 percent to the credit of the wet counties of the state and shall be divided equally among said counties and used exclusively for the purposes of public health;

(4) 29.1 percent to the incorporated municipalities in which an Alabama liquor store was located prior to October 1, 2021 with each municipality receiving as its percentage an amount equal to the ratio of the profits earned by such municipality's Alabama liquor store or stores to the total net profits of all Alabama liquor stores;

(5) 20.9 percent to incorporated cities and towns in the wet counties in the state on the basis of the ratio of the population of each such city or town to the total population of such cities and towns; and

(6) 4.3 percent to the wet counties in the state for general purposes on the basis of the ratio of the population of each such county of the population of all such counties.

§28-3-202.

(a) Repealed by Acts 1986, No. 86-212, p. 264, §3.

(b) Levy; collection; disposition of proceeds. In addition to all other taxes of every kind now imposed by law and in addition to any marked-up price authorized or required by law, there is hereby levied and shall be collected a tax at the rate of 10 percent upon the selling price of all spirituous or vinous liquors sold by the board. Effective October 1, 2021, this tax shall be 14 percent. The tax imposed by this subsection shall be collected by the board from the purchaser at the time the purchase price is paid. One half of the proceeds derived from the tax shall be deposited in the State Treasury to the credit of the Public Welfare Trust Fund and shall be used for general welfare purposes and is hereby appropriated therefor. The remainder of such proceeds from the tax levied by this subsection shall be deposited in the State Treasury to the credit of a special fund which shall be designated the Alabama Special Mental Health Fund and shall be used only for mental health purposes, including the prevention of mental illness, the care and treatment of the mentally ill and the mentally deficient and the acquisition, equipment, operation and maintenance of facilities for mental health purposes.

The markup as currently established by the board on spirituous or vinuous liquors shall not be reduced by the board for the purpose of absorbing the tax levied by this subsection, it being the intention of this provision that the said tax shall be passed on to the purchaser.

§28-3-205.

(a) Repealed by Acts 1986, No. 86-212, p. 264, §3.

(b) Levy and collection of tax. In addition to all other taxes of every kind now imposed by law, and in addition to any marked-up price authorized or required by law, there is hereby levied and shall be collected a tax at the rate of 10 percent upon the selling price of all spirituous or vinous liquors sold by the board. Effective October 1, 2021, this tax shall be 6 percent. The tax hereby imposed shall be collected by the board from the purchaser at the time the purchase price is paid.

(c) Tax to be passed on to purchaser. The mark-up as currently established by the board on spirituous or vinous liquors shall not be reduced by the board for the purpose of absorbing the tax herein levied; it being the intention hereof that the said tax shall be passed on to the purchaser.

(d) Disposition of proceeds. All revenues collected under the provisions of this section shall be paid into the State Treasury to the credit of the General Fund.

§28-3-207.

"There is hereby exempted from the provisions of this article and from the computation of the amount of tax levied, assessed, or payable under such this article or any other tax levied on liquor by general law, the sale of all spirituous or vinous liquors sold by the Alabama Alcoholic Beverage Control Board to a certificated or licensed air carrier with a hub operation within this state, for use in conducting intrastate, interstate, or foreign commerce for transporting people or property by air. For the purpose of this section, the words "hub operation within this state" shall be construed to have all of the following criteria:

"(1) There originates from the location 15 or more flight departures and five or more different first-stop destinations five days per week for six or more months during the calendar year; and.

"(2) Passengers and/or or property, or both, are regularly exchanged at the location between flights of the same or a different certificated or licensed air carrier.

§28-3-241.

"Any alcoholic beverages as enumerated and defined in this chapter to be sold or distributed by and through state liquor stores found within this state in the possession of or on the premises of any a person, firm, corporation, or association of persons not having affixed thereto such mark of identification showing that said the alcoholic beverages were sold or distributed by a state liquor store as required by law shall be subject to confiscation and sale in the same manner as set forth in this chapter for malt or brewed beverages as defined in this chapter and vinous beverages not exceeding 24 percent by volume which do not have affixed thereto the required revenue stamps as provided for in this chapter.

"Persons who are found guilty of having in their possession any such contraband liquors shall be subject to the same fines and imprisonment as set forth in this chapter for persons having in their possession any malt or vinous beverages without the proper stamps affixed thereto as required by this chapter.

§28-3A-11.

"Upon applicant's compliance with the provisions of this chapter and the regulations made thereunder, the board shall, where the application is accompanied by a certificate from the clerk or proper officer setting out that the applicant has presented his or her application to the governing authority of the municipality, if the licensed premises is to be located therein, and has obtained its consent and approval, issue a retail liquor license which. The license will authorize the licensee to purchase liquor and wine from the board or as authorized by the board and to purchase table wine, and beer, including draft or keg beer in any a county or municipality in which the sale thereof is permitted, from any a wholesaler licensee of the board and to sell at retail liquor and table wine, dispensed from containers of any size, and beer, including draft or keg beer in any a county or municipality in which the sale thereof is permitted, to patrons. The license shall authorize the licensee to sell at retail liquor for on-premises consumption only. A lounge liquor licensee may permit dancing or provide other lawful entertainment on the licensed premises. No person under 19 years of age shall be admitted on the premises of any a lounge liquor licensee as a patron or employee, and it shall be unlawful for any such licensee to admit any a minor to the premises as a patron or employee.

§28-3A-12.

"Upon applicant's compliance with the provisions of this chapter and the regulations made thereunder, the board may, where the application is accompanied by a certificate from the clerk or proper officers setting out that the applicant has presented his or her application to the governing authority of the municipality, if the licensed premises is to be located therein, and has obtained its consent and approval, issue a club liquor license for a club which. The license will authorize the licensee to purchase liquor and wine from the board or as authorized by the board and to purchase table wine and beer, including draft or keg beer in any a county or municipality in which the sale thereof is permitted, from any a wholesale licensee of the board and to sell liquor and wine, dispensed from containers of any size, and beer, including draft or keg beer, in any a county or municipality in which the sale thereof is permitted, to the members of the club or their guests for on-premises consumption and to sell all of the above table wine and beer for off-premises consumption except on Sunday.

§28-3A-19.

"Upon applicant's compliance with the provisions of this chapter and the regulations made thereunder, the board shall issue a special retail license in wet counties for a state park, racing commission, fair authority, airport authority, or civic center authority, or the franchises or concessionaire of such park, commission, or authority, and may, in its discretion, issue a special retail license to any other valid responsible organization of good reputation for such period of time not to exceed one year and upon such terms and conditions as the board shall prescribe, which. The license will authorize the licensee to purchase, where the retail sale thereof is authorized by the board, liquor and wine from the board or as authorized by the board and table wine and beer from any a wholesale licensee of the board and to sell at retail and dispense for on-premises consumption such alcoholic beverages as are authorized by the board at such locations authorized by the board upon such terms and conditions as prescribed by the board. Provided, however, no No sale of alcoholic beverages shall be permitted on any a Sunday after the hour of 2:00 A.M.

§28-3A-20.

"Upon applicant's compliance with this chapter and the regulations made thereunder, and upon application made on a form provided by the board at least 25 120 days in advance of the event for which a license is granted, the board shall issue a special events license for a valid, responsible organization of good reputation, for a period not to exceed seven days, and upon such terms and conditions as the board may prescribe. The license shall authorize the licensee to purchase, where the retail sale thereof is authorized by the board, liquor and wine from the board or as authorized by the board and table wine and beer from any a wholesale licensee of the board and to sell at retail and dispense for on-premises consumption such alcoholic beverages as are authorized by the board to the patrons, guests, or members of the organization at such locations or areas as shall be authorized by the board upon such terms and conditions as prescribed by the board. No sale of alcoholic beverages shall be permitted on any a Sunday after the hour of 2:00 A.M.

§28-3A-21.

"(a) The following annual license fees are levied and prescribed for licenses issued and renewed by the board pursuant to the authority contained in this chapter:

"(1) Manufacturer license, license fee of five hundred dollars ($500).

"(2) Importer license, license fee of five hundred dollars ($500).

"(3) Liquor wholesale license, license fee of five hundred dollars ($500).

(4) Wholesaler license, beer license fee of five hundred fifty dollars ($550) or wine license fee of five hundred fifty dollars ($550); license fee for beer and wine of seven hundred fifty dollars ($750); plus two hundred dollars ($200) for each warehouse in addition to the principal warehouse.

"(5) Warehouse license, license fee of two hundred dollars ($200).

"(6) Retail license, license fee of seven hundred fifty dollars ($750) for each retail outlet operated under the license.

"(6)(7) Lounge retail liquor license, license fee of three hundred dollars ($300).

"(7)(8) Restaurant retail liquor license, license fee of three hundred dollars ($300).

"(8)(9) Club liquor license, Class I license fee of three hundred dollars ($300), Class II license fee of seven hundred fifty dollars ($750).

"(9)(10) Retail table wine license for off-premises consumption, license fee of one hundred fifty dollars ($150).

"(10)(11) Retail table wine license for on-premises and off-premises consumption, license fee of one hundred fifty dollars ($150).

"(11)(12) Retail beer license for on-premises and off-premises consumption, license fee of one hundred fifty dollars ($150).

(12)(13) Retail beer license for off-premises consumption, license fee of one hundred fifty dollars ($150).

"(13)(14) Retail common carrier liquor license, license fee of one hundred fifty dollars ($150) for each railroad, airline, bus line, ship line, vessel or other common carrier entity with a vehicle passenger capacity of at least 10 people.

"(14)(15) Special retail license, license fee of one hundred dollars ($100) for 30 days or less; license fee of two hundred fifty dollars ($250) for more than 30 days.

"(15)(16) Special events retail license, license fee of one hundred fifty dollars ($150).

"(b) The license fees levied and fixed by this section shall be paid before the license is issued or renewed.

"(c) In addition to the foregoing filing fee and license taxes or fees, any county or municipality in which the sale of alcoholic beverages is permitted shall be authorized to fix and levy privileges or license taxes on any of the foregoing licenses located or operated therein, conditioned on a permit or license being issued by the board.

"(d) No county or municipality shall have any authority to levy a license or tax of any nature on any a state operated liquor store.

"(e) The Alcoholic Beverage Control Board may increase license fees levied and fixed by this section pursuant to Section 41-1-11.

§28-3A-22.

"The revenue derived from filing fees, license fees or taxes levied under Section 28-3A-4 and Section 28-3A-21 shall be deposited upon receipt by the board in the State Treasury to the credit of the Beer Tax and License Fund and each month's receipts shall be distributed to the State General Fund no later than the end of the following month.

"County license fees authorized by and levied pursuant to Section 28-3A-21 shall be collected by the board and the proceeds of such collections shall be paid by the board into the State Treasury to the credit of the county levying said the license fee and paid semiannually to the governing body of said the county."

§28-3A-24.

"(a) The board shall have full and final authority as to the suspension or revocation of any license issued under this chapter and to levy a fine against a licensee in lieu of such suspension or revocation. The board shall have the full right and authority to suspend any retail license issued by it for any reason which it may deem sufficient and proper.

"Provided, however, the board may appoint a hearing commission of not less than three members to hear and decide all contested applications of licenses under this chapter, and hear and decide all charges against any licensee for violation of this chapter, the law or the regulations of the board and shall have the power and authority to revoke or suspend for cause licenses and permits, or to fine licensees provided in this chapter. Provided, no member of the hearing commission shall participate in the hearing or disposition of any application for license or charge against a licensee if he has an interest therein or he was involved in the investigation.

"(b) The board or a hearing commission appointed by the board, upon sufficient cause being shown or proof being made that any licensee holding a license issued by the board, or any partners, members, officers, or directors of the licensee has or have violated any of the laws of this state or regulations of the board relating to the manufacture, sale, possession or transportation of alcoholic beverages, or where the licensed premises has been conducted in a manner prejudicial to the welfare, health, peace, temperance and safety of the people of the community or of the state, may upon due notice and proper hearing being given to the person so licensed, suspend or revoke the license issued by the board. In all such cases where the board or hearing commission shall suspend or revoke a license, it shall set forth its findings of fact, the evidence from which such findings of fact are made, and the reasons upon which its actions are based.

"Provided, however, upon sufficient cause being shown or proof being made of any licensee violating Section 28-3A-25(a)(3) for the first time, the board shall immediately revoke or suspend the associated license for a period of one week. This revocation shall be subject to review by the board or hearing commission within a reasonable time.

"(c) When, in the opinion of the board or hearing commission, a fine is deemed more appropriate than suspending or revoking a license, the board or hearing commission is authorized to fine the licensee for any cause that could result in suspension or revocation. Such fines may not exceed the sum of $1,000.00. The licensee must remit the fine to the administrator within one week of the day that such fine is levied. Failure to pay the fine within this period shall result in an automatic suspension of the license until such fine is paid. All fines collected by the board shall be paid by the administrator into the Treasury of the state and credited to the General Fund.

"(d) The maximum length of suspension of a license under these provisions shall be one year, and any licensee whose license is suspended by the board or hearing commission shall be, at the discretion of the board or hearing commission, ineligible to have any license under this chapter until the expiration or removal of the suspension. Any licensee whose license is revoked by the hearing commission or the board shall be, at the discretion of the board or hearing commission, ineligible to have any license under this chapter until the expiration of one year from the date such license is revoked. The board or hearing commission is hereby granted broad discretionary powers in exercising its authority under this section.

§28-7-16.

(a) Levy. There is hereby levied in addition to the license taxes provided for by this chapter and municipal and county license taxes and in addition to any marked-up price made by the board on wine sold by the board a privilege or excise tax measured by and graduated in accordance with the volume of sales of table wine containing not more than sixteen and one-half percent alcohol by volume and shall be an amount equal to forty-five cents ($.45) per liter of table wine containing not more than sixteen and one-half percent alcohol by volume sold to the wholesale licensee or board, to be collected from the purchaser by the board or by a licensed retailer.

(b) Collection, Monthly Return, Remittance, Right to Examine Books and Records.

(1) The tax levied by subsection (a) shall be added to the sales price of all table wine containing not more than sixteen and one-half percent alcohol by volume sold and shall be collected from the purchasers. The tax shall be collected in the first instance from the wholesaler where table wine containing not more than sixteen and one-half percent alcohol by volume is sold or handled by wholesale licensees, and by the board from whomever makes sales when table wine containing not more than sixteen and one-half percent alcohol by volume is sold by the board. It shall be unlawful for any person who is required to pay the tax in the first instance to fail or refuse to add to the sales price and collect from the purchaser the required amount of tax, it being the intent and purpose of this provision that the tax levied is in fact a levy on the consumer. The person who pays the tax in the first instance is acting as an agent of the state for the collection and payment of the tax and as such may not collect a tax on table wine containing not more than sixteen and one-half percent alcohol by volume for any other level of government.

(2) The tax hereby levied shall be collected by a monthly return, which shall be filed by the wholesale licensees as follows: A monthly return filed with the board not later than the 15th day of the second month following the month of receipt of table wine containing not more than sixteen and one-half percent alcohol by volume by the wholesaler on a form prescribed by the board showing receipts by the wholesalers from manufacturer, importer, or other wholesaler licensees during the month of receipt and the taxes due thereon at the rate of thirty-eight cents ($.38) per liter of table wine containing not more than sixteen and one-half percent alcohol by volume sold to the wholesale licensee or board; the taxes due at such rate shall be remitted to the board along with the return; a monthly return filed with the county or municipality within which the wine is sold at retail filed not later than the 15th day of each month showing sales by wholesalers during the preceding month and the county or municipality in which sold and the taxes due thereon at the rate of seven cents ($.07) per liter of table wine containing not more than sixteen and one-half percent alcohol by volume sold; and the taxes due at such rate shall be remitted to the county or municipality along with the return.

(3) The tax hereby levied shall be collected by the board on the table wine containing not more than sixteen and one-half percent alcohol by volume sold by the board and shall be paid as follows: Taxes at the rate of thirty-eight cents ($.38) per liter of table wine containing not more than sixteen and one-half percent alcohol by volume sold shall be remitted by the board to the State Treasurer and taxes at the rate of seven cents ($.07) per liter of table wine containing not more than sixteen and one-half percent alcohol by volume sold shall be remitted by the board to the county or municipality within which the wine was sold at retail not later than the last day of the month following the month of sale, as set forth in subsection (c).

(4) The board and the governing body of each county and municipality served by the wholesaler shall have the authority to examine the books and records of any person who sells, stores, or receives for the purpose of distribution any table wine, containing not more than sixteen and one-half percent alcohol by volume to determine the accuracy of any return required to be filed with it.

(c) Disposition of proceeds. The proceeds of the tax levied by subsection (a) shall be paid and distributed as follows:

(1) Thirty-eight cents ($.38) per liter of table wine containing not more than sixteen and one-half percent alcohol by volume sold shall be collected by the board on its sales or paid to the board by wholesale licensees on their sales, and by the board paid to the State Treasurer to be credited as net profits from operation of the board to be distributed as provided by law until September 30, 2021. Thereafter, these proceeds shall be credited to the State General Fund.

(2) Seven cents ($.07) per liter of table wine containing not more than sixteen and one-half percent alcohol by volume sold shall be paid by the board on its sales or by wholesale licensees on their sales, either into the treasury of the municipality in which the table wine was sold at retail within its corporate limits, or, where sold outside the corporate limits of any municipality, into the treasury of the county in which the table wine was sold at retail.

(d) There is hereby levied in addition to the license taxes provided for by this chapter and municipal and county license taxes and in addition to any marked-up price made by the board on wine sold by the board a privilege or excise tax measured by and graduated in accordance with the volume of sales of table wine containing more than sixteen and one-half percent alcohol by volume. The tax shall be an amount equal to two dollars and forty-two cents ($2.42) per liter of table wine containing more than sixteen and one-half percent alcohol by volume sold to the wholesale licensee or board, to be collected from the purchaser by the board or by a licensed retailer.

(e) Collection, Monthly Return, Remittance, Right to Examine Books and Records.

(1) The tax levied by subsection (d) shall be added to the sales price of all table wine containing more than sixteen and one-half percent alcohol by volume sold and shall be collected from the purchasers. The tax shall be collected in the first instance from the wholesaler where table wine containing more than sixteen and one-half percent alcohol by volume is sold or handled by wholesale licensees, and by the board from whomever makes sales when table wine containing more than sixteen and one-half percent alcohol by volume is sold by the board. It shall be unlawful for any person who is required to pay the tax in the first instance to fail or refuse to add to the sales price and collect from the purchaser the required amount of tax, it being the intent and purpose of this provision that the tax levied is in fact a levy on the consumer. The person who pays the tax in the first instance is acting as an agent of the state for the collection and payment of the tax and as such may not collect a tax on table wine containing more than sixteen and one-half percent alcohol by volume for any other level of government.

(2) The tax levied in subsection (d) shall be collected by a monthly return, which shall be filed by the wholesale licensees with the board not later than the 15th day of the second month following the month of receipt of table wine containing more than sixteen and one-half percent alcohol by volume by the wholesaler on a form prescribed by the board showing receipts by the wholesalers from manufacturer, importer, or other wholesaler licensees during the month of receipt and the taxes due thereon at the rate of two dollars and forty-two cents ($2.42) per liter of table wine containing more than sixteen and one-half percent alcohol by volume sold to the wholesale licensee or board; the taxes due at such rate shall be remitted to the board along with the return.

(3) The tax levied in subsection (d) shall be collected by the board on table wine containing more than sixteen and one-half percent alcohol by volume sold by the board and shall be paid as follows: Taxes at the rate of two dollars and forty-two cents ($2.42) per liter of table wine containing more than sixteen and one-half percent alcohol by volume sold shall be remitted by the board to the State Treasurer.

(4) The board shall have the authority to examine the books and records of any person who sells, stores, or receives for the purpose of distribution any table wine containing more than sixteen and one-half percent alcohol by volume, to determine the accuracy of any return required to be filed with it.

(f) Disposition of proceeds. The proceeds of the tax levied by subsection (d) shall be paid and distributed as follows:

(1) Thirty-seven percent to the Alcoholic Beverage Control Board.

(2) Thirty-four percent to the State General Fund.

(3) Twenty and eight-tenths percent to the Department of Human Resources.

(4) Eight and two-tenths percent to the Department of Mental Health.

(g) Taxes exclusive. The taxes herein levied are exclusive and shall be in lieu of all other and additional taxes and licenses of the state, county, or municipality, imposed on or measured by the sale or volume of sale of table wine; provided, that nothing herein contained shall be construed to exempt the retail sale of table wine from the levy of tax on general retail sales by the state, county, or municipality in the nature of, or in lieu of, a general sales tax.

(h) Trade between wholesalers exempt. The taxes levied by subsections (a) and (d) shall not be imposed upon the sale, trade, or barter of table wine by one licensed wholesaler to another wholesaler licensed to sell and handle table wine in this state, which transaction is hereby made exempt from the tax; provided, however, the board may require written reporting of any such transaction in the form as the board may prescribe.

Section 20. All laws or parts of laws which conflict or are inconsistent with this act are repealed. Sections 28-3-74 and 28-3-280 through 28-3-286 of the Code of Alabama 1975 are specifically repealed on October 1, 2021.

Section 21. (a) All other laws shall be read in pari materia with this act, including, but not limited to, laws regulating the sale of liquor and laws regulating licensees of the board, so as to effectuate the intent and purposes prescribed by this act.

(b) This act shall not be construed as authorizing the sale of liquor or any other type of alcoholic beverage in any area of the state. Such sales shall be permitted only if otherwise authorized by law.

Section 22. The provisions of this act are severable. If any part of this act is declared invalid or unconstitutional, that declaration shall not affect the part which remains.

Section 23. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Alcoholic Beverage Control Board

Alcoholic Beverages

Business and Commerce

Economic and Community Affairs Department

Employment

Leases and Leasing

Retail Sales of Liquor Market Zone Commission

Boards and Commissions

Licenses and Licensing

Competitive Bids

Market Zones

Taxation

Revenue Department

Attorney General

Ethics Commission

Code Amended

Code Repealed