SB343

ENGROSSED

By Senator Holtzclaw

A BILL TO BE ENTITLED AN ACT

Relating to alcoholic beverages; to amend Section 28-3-4, Code of Alabama 1975, to allow a family member of a manufacturer, distributor, wholesaler, or retailer of alcoholic beverages or a family member of an officer or director thereof to be a licensed manufacturer or retailer of alcoholic beverages or be the owner, proprietor, or lessor of a place covered by a separate beer or liquor license on specified conditions.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 28-3-4, Code of Alabama 1975, is amended to read as follows:

§28-3-4.

"(a) No Subject to subsection (h), no manufacturer and no officer or director of any manufacturer shall at the same time be a distributor, wholesaler or retail dispenser or an officer, director or stockholder or creditor of any distributor, wholesaler or retail dispenser, nor, except as provided in this section, be the owner, proprietor or lessor of any place covered directly or indirectly by any distributor's or wholesaler's malt or brewed beverage liquor license.

"(b) No Subject to subsection (h), no distributor or wholesaler and no officer or director of any distributor or wholesaler shall at the same time be a manufacturer or retailer or be an officer, director, stockholder, or creditor of a manufacturer or retailer or be the owner, proprietor, or lessor of any place covered by any other malt or brewed beverage or liquor license.

"(c) No Subject to subsection (h), no licensee licensed under this chapter shall directly or indirectly own any stock of, or have any financial interest in, any other class of business licensed under this chapter.

"(d) Except as provided in this section, no manufacturer, wholesaler or distributor shall in any wise be interested, either directly or indirectly, in the ownership or leasehold of any property or in any mortgage against the same for which a liquor or retail dispensers' license is granted, nor shall a manufacturer, wholesaler or distributor, either directly or indirectly, lend any moneys, credit or equivalent thereof to any retailer in equipping, fitting out or maintaining and conducting, either in whole or in part, an establishment or business operated under a liquor retail dispensers' license, excepting only the usual and customary credits allowed for returning packages or containers in which malt or brewed beverages were packed for market by the manufacturer.

"(e) Except as provided in this section no manufacturer shall in any wise be interested, directly or indirectly, in the ownership or leasehold of any property or any mortgage lien against the same, for which a distributor's or wholesaler's license is granted nor shall a manufacturer, either directly or indirectly, lend any moneys, credit or their equivalent to any distributor or wholesaler in equipping, fitting out or maintaining and conducting, either in whole or in part, an establishment or business where malt or brewed beverages are licensed for sale by a distributor or wholesaler, excepting only the usual credits allowed for the return of packages or containers in which malt or brewed beverages were originally packed for the market by the manufacturer.

"(f) No distributor, wholesaler or retail dispenser shall in any wise, either directly or indirectly, receive any credit, loan, moneys or the equivalent thereof from any other licensee or from or through a subsidiary or affiliate of another licensee or from any firm, association or corporation, except a banking institution, in which another licensee or any officer, director or firm member of another licensee has a substantial interest or exercises a control of its business policy for equipping, fitting out, payment of license fee or maintaining and conducting, either in whole or in part, an establishment or business operated under a distributor's, wholesaler's or retail dispenser's license, excepting only the usual and customary credits allowed for the return of packages or containers in which malt or brewed beverages were packed for the market by the manufacturer.

"(g) The purpose of this section is to require a separation of the financial and business interest between the various classes of business regulated by this chapter, and no person or corporation shall by any device whatsoever directly or indirectly, evade the provisions of this section.

"(h) Nothing in this section prohibits a family member of a person who is a licensed manufacturer, wholesaler, distributor, or retailer who does not reside in the household of the person or a family member of an officer or director thereof who does not reside in the household of the officer or director from being licensed as a manufacturer, wholesaler, distributor, or retailer if the family member has reached the age of majority and is not an officer, director, employee, or stockholder of the licensee."

Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Alcoholic Beverages

Wine

Beer

Code Amended