HB 126: Alcoholic beverages; purchased from designated retail dealers by small businesses; provide for sale or distribution

Under current Georgia law, businesses that want to sell alcoholic beverages for consumption on their premises generally must buy from licensed wholesalers rather than retail stores. HB126 creates a new chapter of Georgia's alcoholic beverage code letting a 'small business,' defined as one earning $250,000 or less a year from alcohol sales and where alcohol makes up no more than 25 percent of its total revenue, apply for state authorization to buy alcohol from up to three retail dealers it designates and resell it on-site. To qualify, the small business must apply to the Department of Revenue with details about its owners, location, revenue, and chosen retail dealers, who must consent in writing. The business must keep records, file reports, pay an annual fee of up to $300, and get a license renewed yearly for each location. Designated retail dealers must also keep sales records available to the department. Violations can bring misdemeanor charges, fines up to $500 per violation, and suspension of authorization for up to 30 days.

• Creates a new licensing pathway allowing small businesses, defined by revenue limits, to buy alcohol from designated retail dealers instead of wholesalers, for resale on-site.
• Requires small businesses to apply to the Department of Revenue with ownership, location, revenue, and designated retail dealer information before selling alcohol this way.
• Caps the number of retail dealers a small business can designate at three and requires those dealers' written consent.
• Requires annual licensing, recordkeeping, and reporting by both the small business and its designated retail dealers.
• Sets an annual registration fee of up to $300 and authorizes fines up to $500 per violation plus possible 30 day suspensions of the authorization.
• Makes knowing violations of the new rules a misdemeanor criminal offense.

Small businesses that sell alcohol for on-site consumption, such as restaurants or bars with limited alcohol revenue, along with the retail dealers they designate as suppliers. The Georgia Department of Revenue and its commissioner would administer licensing, fees, and enforcement under the new system.

Small businesses that qualify could source alcohol from nearby retail stores rather than going through traditional wholesale distribution channels, potentially simplifying supply for low-volume sellers. Designated retail dealers would take on new recordkeeping duties, and both sides face new fees, licensing requirements, and penalties for noncompliance.

• Code Section 3-16-1 defines 'small business' as one with alcohol sales revenue of $250,000 or less per year that also makes up no more than 25 percent of its total revenue.
• Code Section 3-16-2 lets the commissioner authorize qualifying small businesses to buy alcohol from designated retail dealers in the same municipality or county for on-site sale.
• Code Section 3-16-3 requires an application listing owners, location, prior year revenue figures, and up to three designated retail dealers with their signed consent, plus ongoing reports and records.
• Code Section 3-16-3 sets an annual registration fee capped at $300, set by the commissioner.
• Code Section 3-16-4 requires an annually renewed license for each business location selling under this system.
• Code Section 3-16-5 requires the small business or its agent to show a valid license when purchasing from a designated dealer, and requires dealers to keep records of such sales.
• Code Section 3-16-7 makes unlicensed purchases or sales, buying from non-designated dealers, or other violations a misdemeanor, with fines up to $500 per violation and suspensions up to 30 days.

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

• alcohol sales
• small business regulation
• liquor licensing
• restaurant and bar rules