SB122: SB122 "Craft Beer and Local Economy Revitalization Act"; enact

25 LC 55 0461 Senate Bill 122 By: Senators Albers of the 56th, Robertson of the 29th, Walker III of the 20th, Esteves of the 35th, Anavitarte of the 31st and others A BILL TO BE ENTITLED AN ACT To amend Title 3 of the Official Code of Georgia Annotated, relating to alcoholic beverages,1 so as to provide for regulation of the manufacture, distribution, and sale of malt beverages;2 to provide for definitions; to authorize manufacturers of malt beverages to sell or donate malt3 beverages they produce, subject to certain limitations and conditions; to provide for direct4 donation of malt beverages by brewers and brewpubs to certain charitable events; to provide5 that sales for consumption off the premises are not subject to a daily maximum; to permit6 small brewers to sell a limited quantity of malt beverages at w holesale; to provide for7 remittance of excise and use taxes on donated malt beverages; to provide for a short title; to8 provide for related matters; to repeal conflicting laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 This Act shall be known and may be cited as the "Craft Beer and Local Economy12 Revitalization Act."13 S. B. 122 - 1 - 25 LC 55 0461 SECTION 2.14 Title 3 of the Official Code of Georgia Annotated, relating to alcoholic beverages, is15 amended by adding a new paragraph to Code Section 3-1-2, relating to definitions, to read16 as follows:17 "(20.1) 'Small brewer' means a brewer or brewpub whose sales of products to such18 brewer's or brewpub's wholesaler licensed under this title, if any, do not exceed 1519 percent of such wholesaler's total sales in the prior calendar year."20 SECTION 3.21 Said title is further amended by adding a new Code section to read as follows:22 "3-5-6.23 (a) As used in this Code section, the term:24 (1) 'Charitable event permit holder' means a bona fide nonprofit civic organization that25 has been issued a permit pursuant to Code Section 3-9-3 for the sale of alcoholic26 beverages for consumption on the premises.27 (2) 'Permitted charitable event' means an event for which a permit has been obtained by28 a bona fide nonprofit civic organization pursuant to Code Section 3-9-3 authorizing such29 organization to sell alcoholic beverages for consumption on the premises.30 (b) A brewer or brewpub may directly donate malt beverages it manufactures to a31 charitable event permit holder for a permitted charitable event, provided that:32 (1) The amount of such donated malt beverages shall not exceed the amount necessary33 for the permitted charitable event;34 (2) Any donated malt beverages that are not used or consumed d uring the permitted35 charitable event shall be returned to the brewer or brewpub within 24 hours of the event36 closure or the expiration of the charitable event permit, whichever is later; and37 S. B. 122 - 2 - 25 LC 55 0461 (3) The donated malt beverages shall be transported to and from the permitted charitable38 event by the charitable event permit holder or the brewer or br ewpub that made the39 donation."40 SECTION 4.41 Said title is further amended by revising subsection (b) of Code Section 3-5-24.1, relating to42 exception to three-tier system, transfer of liquids, sales at brewer's licensed premises, taxing,43 regulatory authority, and conditions or limitations, as follows:44 "(b) A limited exception to the provisions of this title providing a three-tier system for the45 distribution and sale of malt beverages shall exist to the exte nt that the license to46 manufacture malt beverages in this state shall include the righ t to sell malt beverages to47 individuals on the brewer's licensed premises for personal use and not for resale, subject48 to the following terms and conditions:49 (1) The brewer may only make sales of malt beverages to an ind ividual while the50 individual is physically on the brewer's licensed premises where the brewer produces malt51 beverages;52 (2) The brewer may make sales of malt beverages the brewer produces at the brewer's53 licensed premises where the individual is purchasing the malt beverages;54 (3) As long as the brewer and all of the brewer's licensed premises are under common55 ownership, the brewer may make sales of malt beverages the brew er produces at any56 licensed premises of the brewer and subsequently transfers in c ompliance with the57 limitations and reporting obligations of subsection (c) of this Code section to the brewer's58 licensed premises for sale where the individual is purchasing the malt beverages;59 (4) The brewer may only make sales of malt beverages for which the brewer is the sole60 owner of the brand and brand label;61 (5) Sales for consumption on the premises are not subject to a daily maximum amount;62 S. B. 122 - 3 - 25 LC 55 0461 (6) Sales for consumption off the premises shall not exceed a maximum of 288 ounces63 of malt beverages per individual per day are not subject to a daily maximum amount; and64 (7) The maximum amount of malt beverages the brewer may sell p ursuant to this65 subsection (b) of this Code section in each calendar year shall be 6,000 barrels in the66 aggregate among all brewer's licensed premises making such sales."67 SECTION 5.68 Said title is further amended by adding a new Code section to read as follows:69 "3-5-24.2.70 (a) Notwithstanding the provisions of Code Section 3-5-24.1 and as a limited exception71 to the provisions of this title providing a three-tier system for the distribution and sale of72 malt beverages, the license to manufacture malt beverages in th is state shall include for73 small brewers the right to:74 (1) Sell per calendar year up to 3,000 barrels of malt beverag es produced at the small75 brewer's licensed premises at wholesale to retailers licensed in this state that are located76 within a 100 mile radius of the small brewer's licensed premises;77 (2) Sell, deliver, and ship its malt beverages to other licensed brewers and brewpubs; and78 (3) Acquire and receive deliveries and shipments of such malt beverages made by other79 licensed brewers and brewpubs.80 (b) The commissioner shall promulgate and enforce such rules and regulations as he or she81 may deem reasonable and necessary to effectuate the provisions of this Code section."82 SECTION 6.83 Said title is further amended by revising Code Section 3-5-27, relating to malt beverages84 acquired by retail dealers from persons other than licensed who lesale dealers declared85 contraband, as follows:86 S. B. 122 - 4 - 25 LC 55 0461 "3-5-27.87 Except as otherwise provided in this chapter, any Any malt beverage possessed, sold, or88 offered for sale by a retail dealer which was purchased or othe rwise acquired from any89 person other than a wholesale dealer authorized to do business under this chapter is90 declared to be contraband and shall be seized by the commissioner or the appropriate local91 authorities and disposed of by the commissioner in the manner provided in this title."92 SECTION 7.93 Said title is further amended by revising Code Section 3-5-81, relating to payment of tax by94 wholesale dealers generally, time of payment, and reports by de alers as to quantities of95 beverages sold, as follows:96 "3-5-81.97 (a) The excise taxes provided for in this part shall be imposed upon and shall be paid by98 the licensed wholesale dealer in malt beverages; provided, however, that such taxes shall99 be imposed upon and shall be paid by the licensed brewer or brewpub for malt beverages100 served or sold by the brewer directly to the public pursuant to Code Section 3-5-24.1 or101 donated by the brewer or brewpub pursuant to Code Section 3-5-6.102 (b) The taxes shall be paid on or before the tenth day of the month following the calendar103 month in which the beverages are sold, donated, or disposed of within the particular104 municipality or county.105 (c) Each licensee responsible for the payment of the excise tax shall file a report itemizing106 for the preceding calendar month the exact quantities of malt beverages, by size and type107 of container, sold or donated during the month within each municipality or county. The108 licensee shall file the report with each municipality or county wherein the beverages are109 sold or donated by the licensee.110 S. B. 122 - 5 - 25 LC 55 0461 (d) The licensee shall remit to the municipality or county on the tenth day of the month111 following the calendar month in which the sales or donations were made the tax imposed112 by the municipality or county."113 SECTION 8.114 All laws and parts of laws in conflict with this Act are repealed.115 S. B. 122 - 6 -