HB126: HB126 Alcoholic beverages; purchased from designated retail dealers by small businesses; provide for sale or distribution

Currently, businesses that want to sell alcohol for consumption on their premises generally must go through the usual state licensing and distribution channels. This bill creates a new option for small businesses, defined as those earning under $250,000 a year from alcohol sales and where alcohol makes up no more than 25 percent of total revenue, to instead purchase alcoholic beverages directly from up to three retail dealers they designate in the same city or county. To participate, a small business must apply to the Department of Revenue, name its designated retail dealers, report and keep records on purchases and sales, and pay an annual registration fee of up to $300. The commissioner would issue a renewable license for each business location, and both the small business and the designated retail dealer must keep accurate records available to the state on request. Violations can bring misdemeanor charges, fines up to $500 per violation, and suspension of the business's authorization for up to 30 days.

• Creates a new chapter in Georgia's alcoholic beverage code (O.C.G.A. Title 3) letting qualifying small businesses buy alcohol from designated local retail dealers for on-site resale.
• Defines a 'small business' as one earning under $250,000 a year from alcohol sales and where alcohol is no more than 25 percent of total revenue.
• Requires small businesses to apply for a license, name up to three designated retail dealers, and pay an annual fee capped at $300.
• Requires both the small business and its designated retail dealers to keep records of purchases and sales and report them to the Department of Revenue on request.
• Makes it a misdemeanor to buy or sell alcohol under this program without a valid license or from a non-designated dealer, and lets the commissioner fine violators up to $500 and suspend authorization for up to 30 days.
• Directs the commissioner to write rules and regulations to carry out the new law and repeals conflicting laws.

Small businesses that sell alcoholic beverages for on-site consumption, retail alcohol dealers who agree to be designated suppliers, and the Department of Revenue and its commissioner, who would administer licensing, record-keeping, and enforcement under the new program.

Small establishments that currently cannot easily access standard alcohol distribution channels could instead buy directly from a local retailer to serve customers on-site. The arrangement comes with new licensing fees, paperwork, and potential fines, affecting both the small business and the retailer it designates.

• Code Section 3-16-1 defines 'alcoholic beverages' and sets the revenue thresholds that qualify a business as a 'small business' under the chapter.
• Code Section 3-16-2 lets the commissioner authorize a small business to sell alcohol bought from a designated retail dealer located in the same city or county.
• Code Section 3-16-3 requires an application listing the business's revenue, owners, and up to three designated retail dealers, plus recordkeeping and a registration fee capped at $300.
• Code Section 3-16-4 requires a separate, annually renewed license for each small business location participating in the program.
• Code Section 3-16-5 requires the small business to show its valid license when buying from the designated retailer and requires the retailer to keep records of those sales.
• Code Section 3-16-6 gives the commissioner authority to write rules and regulations to enforce the chapter.
• Code Section 3-16-7 makes unlicensed or non-designated purchases a misdemeanor and allows fines up to $500 and suspensions up to 30 days for violations by either the small business or the retail dealer.

1. 2025-01-29House Second Readers (House)
2. 2025-01-28House First Readers (House)
3. 2025-01-27House Hopper (House)

• Kasey Carpenter (R, HD-004)Primary sponsor

• alcoholic beverages
• small business regulation
• liquor licensing
• state alcohol law