---
title: HB 126. Alcoholic beverages; purchased from designated retail dealers by small businesses; provide for sale or distribution
collection: bills
id: 2025-2026/hb126
cite_as: HB 126, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb126
md_url: https://georgiacommons.org/bills/2025-2026/hb126.md
text_url: https://georgiacommons.org/bills/2025-2026/hb126/text
source_url: https://www.legis.ga.gov/legislation/69500
date: 2025-01-29
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb126.md?full=1
bill_number: HB 126
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-01-27
last_action: House Second Readers
sponsors:
- Kasey Carpenter
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB126/2025
upstream_id: 1943289
summaries_model: claude-sonnet-5
topic_tags:
- alcohol sales
- small business regulation
- liquor licensing
- restaurant and bar rules
---
# HB 126. Alcoholic beverages; purchased from designated retail dealers by small businesses; provide for sale or distribution
## Text
House Bill 126
By: Representative Carpenter of the 4th
A BILL TO BE ENTITLED
AN ACT
To amend Title 3 of the Official Code of Georgia Annotated, relating to alcoholic beverages,
so as to provide for the sale or distribution of alcoholic beverages purchased from designated
retail dealers by small businesses; to provide for the license and regulation of such small
businesses; to provide for the designation of retail dealers by such small businesses; to
provide for record keeping and reports; to provide for the transportation of alcoholic
beverages purchased from designated retail dealers by small businesses; to provide
requirements relating to the sale of alcoholic beverages to small businesses; to provide for
rules and regulations; to provide for penalties; to provide for related matters; to repeal
conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 3 of the Official Code of Georgia Annotated, relating to alcoholic beverages, is
amended by adding a new chapter to read as follows:
"CHAPTER 16
3-16-1.
As used in this chapter, the term:
(1) 'Alcoholic beverages' means distilled spirits, malt beverages, and wines.
(2) 'Small business' means a business enterprise whose gross annual revenue from the
sale of alcoholic beverages does not:
(1) Exceed $250,000.00; and
(2) Constitute more than 25 percent of such business enterprise's gross annual revenue
from all sources.
3-16-2.
(a) Notwithstanding any other provision of this title to the contrary and subject to the
requirements of this chapter, in all counties or municipalities in which the sale of alcoholic
beverages is lawful, the commissioner may authorize a small business to sell or otherwise
distribute alcoholic beverages purchased from retail dealers for consumption on the
premises of such small business.
(b) All alcoholic beverages sold or otherwise distributed by a small business under this
chapter shall be purchased from a retail dealer that is designated by such small business as
provided in paragraph (1) of Code Section 3-16-3 and that is located in the same
municipality or, if not within a municipality, the same county in which the location of the
small business where such small business will sell or distribute such alcoholic beverages
is located.
3-16-3.
In order for a small business to be authorized to sell or distribute alcoholic beverages
purchased from retail dealers under this chapter, such small business shall be required to:
(1) Submit an application to the department in a form and manner as the commissioner
may prescribe, which application shall include the name of the small business, the name
or names of the owner or owners of such small business, the physical address of the
location where the small business will sell or distribute such alcoholic beverages, the total
gross revenue the small business received from the sale of alcoholic beverages in the
prior calendar year, the total revenue the small business received from all sources in the
prior calendar year, and the names and physical addresses of no more than three retail
dealers designated by such small business from which such small business will purchase
alcoholic beverages along with a signed statement from such retail dealers indicating that
they consent to such designation;
(2) Provide satisfactory reports to the commissioner on forms provided by the
department stating the quantity of any and all alcoholic beverages purchased from a
designated retail dealer and such other information as may be required by the
commissioner;
(3) Maintain accurate records, which shall be made available to the department upon
request, relating to:
(A) Any and all alcoholic beverages purchased by such small business from a
designated retail dealer;
(B) Any and all alcoholic beverages sold or distributed by such small business; and
(C) The revenue received by such small business from all sources; and
(4) Pay to the department an annual registration fee in an amount determined by the
commissioner, which shall not exceed $300.00.
3-16-4.
(a) The commissioner shall issue to each small business authorized to sell or otherwise
distribute alcoholic beverages purchased from retail dealers under this chapter a license,
which shall be renewed annually.
(b) A separate license under this chapter shall be required for each location of a small
business where such small business sells or otherwise distributes alcoholic beverages
purchased from retail dealers.
3-16-5.
(a) Notwithstanding any other provision of this title to the contrary and subject to the
requirements of this Code section, a small business, or agent thereof, that is authorized to
sell or otherwise distribute alcoholic beverages purchased from retail dealers under this
chapter shall be authorized to purchase from a retail dealer designated by such owner as
provided in paragraph (1) of Code Section 3-16-3 alcoholic beverages for resale or
distribution for consumption on the premises of such small business that is identified in the
application submitted by such small business pursuant to paragraph (1) of Code Section
3-16-3 and to transport such alcoholic beverages from such retail dealer to such premises.
(b) When purchasing alcoholic beverages from a retail dealer as authorized under this
chapter, the small business, or agent thereof, shall present to the retail dealer, at the time
of purchase, a valid license issued by the commissioner pursuant to Code Section 3-16-4.
(c) Each retail dealer designated by a small business as provided in paragraph (1) of Code
Section 3-16-3 shall maintain accurate records of any and all alcoholic beverages sold to
such small business and make such records available to the department upon request.
3-16-6.
The commissioner shall promulgate and enforce such rules and regulations as he or she
may deem reasonable and necessary to effectuate the provisions of this chapter.
3-16-7.
(a)(1) Unless otherwise authorized by law, it shall be unlawful for a small business or
agent thereof to:
(A) Purchase alcoholic beverages from a retail dealer without a valid license issued
pursuant to this chapter;
(B) Sell or otherwise distribute alcoholic beverages purchased from a retail dealer
without a valid license issued pursuant to this chapter;
(C) Purchase alcoholic beverages from a retail dealer that is not designated by such
small business as provided in paragraph (1) of Code Section 3-16-3; or
(D) Otherwise fail to comply with the provisions of this chapter or any rule or
regulation promulgated thereunder.
(2) Any person who knowingly violates any provision of paragraph (1) of this subsection
shall be guilty of a misdemeanor.
(3) In addition to the commissioner's power to suspend, revoke, or cancel licenses,
permits, or registrations issued pursuant to this chapter, upon a violation of paragraph (1)
of this subsection or any rule or regulation promulgated under this chapter by a small
business authorized to sell or distribute alcoholic beverages purchased from retail dealers
under this chapter, the commissioner shall have the power to impose on such small
business a fine not to exceed $500.00 for each violation and may suspend for up to 30
days for each violation the authorization of such small business to sell or otherwise
distribute alcoholic beverages purchased from retail dealers. For purposes of this
paragraph, any such violation committed by an employee or agent of a small business
shall be attributable to and deemed to be an act taken by such small business.
(b) In addition to the commissioner's power to suspend, revoke, or cancel licenses, permits,
or registrations issued pursuant to this title, upon a violation of subsection (c) of Code
Section 3-16-5 or any rule or regulation promulgated under this chapter by a retail dealer,
the commissioner shall have the power to impose on such retail dealer a fine not to exceed
$500.00 for each violation. For purposes of this subsection, any such violation committed
by an employee or agent of a retail dealer shall be attributable to and deemed to be an act
taken by such retail dealer."
SECTION 2.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
House Bill 126 would let small businesses in Georgia buy alcoholic beverages from designated retail dealers and resell them for on-site consumption, under a new licensing and reporting system run by the state.
### Plain-language summary
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.
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Introduced (2025-01-27)
- Last action: House Second Readers (2025-01-29)
- Sponsors: Kasey Carpenter
- Official page: https://www.legis.ga.gov/legislation/69500
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb126.md?full=1