HB 1466: Alcoholic beverages; satellite tasting rooms operated by brewers; provide

House Bill 1466

By: Representatives Ridley of the 6th, Smith of the 18th, Carpenter of the 4th, Douglas of the 78th, Ford of the 170th, and others

A BILL TO BE ENTITLED

AN ACT

To amend Code Section 3-5-24.1 of the Official Code of Georgia Annotated, relating to exception to three-tier system, transfer of liquids, sales at brewer's licensed premises, taxing, regulatory authority, and conditions or limitations, so as to provide for satellite tasting rooms operated by brewers; to provide for limitations; to provide for an exception to a transfer limitation; to provide for rules and regulations; to provide for definitions; to provide for related matters; to provide for effective dates; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Code Section 3-5-24.1 of the Official Code of Georgia Annotated, relating to exception to three-tier system, transfer of liquids, sales at brewer's licensed premises, taxing, regulatory authority, and conditions or limitations, is amended as follows:

"3-5-24.1.

(a) As used in this Code section, the term:

(1) 'Common ownership' means the same 100 percent common ownership interest including, but not limited to, ownership of the stock, limited liability company membership interest, limited liability partnership interest, other entity interest, or partnership interest, in whatever form such ownership interest may exist.

(2) 'Licensed premises' means the physical premises where brewer is licensed by the state as a manufacturer of malt beverages as well as any satellite tasting rooms.

(3) 'Produces' means engaging in the material and essential aspects of the brewing process to manufacture malt beverage for human consumption; provided, however, when a brewer engages in the brewing process at multiple licensed premises, the malt beverage will be deemed to have been produced only at the licensed premises where such malt beverage first began fermentation through the chemical conversion of fermentable sugars into alcohol.

(4) 'Satellite tasting room' means a separate physical location designated by a brewer, under common ownership with the brewer, at which the brewer is authorized under subsection (h) of this Code section to make retail sales of malt beverages to individuals pursuant to subsection (b) of this Code section.

(b) A limited exception to the provisions of this title providing a three-tier system for the distribution and sale of malt beverages shall exist to the extent that the license to manufacture malt beverages in this state shall include the right to sell malt beverages to individuals on the brewer's licensed premises for personal use and not for resale, subject to the following terms and conditions:

(1) The brewer may only make sales of malt beverages to an individual while the individual is physically on the brewer's licensed premises where the brewer produces malt beverages;

(2) The brewer may make sales of malt beverages the brewer produces at the brewer's licensed premises where the individual is purchasing the malt beverages;

(3) As long as the brewer and all of the brewer's licensed premises are under common ownership, the brewer may make sales of malt beverages the brewer produces at any licensed premises of the brewer and subsequently transfers in compliance with the limitations and reporting obligations of subsection (c) of this Code section to the brewer's licensed premises for sale where the individual is purchasing the malt beverages;

(4) The brewer may only make sales of malt beverages for which the brewer is the sole owner of the brand and brand label;

(5) Sales for consumption on the premises are not subject to a daily maximum amount;

(6) Sales for consumption off the premises shall not exceed a maximum of 288 ounces of malt beverages per individual per day; and

(7) The maximum amount of malt beverages the brewer may sell pursuant to subsection

(b) of this Code section this subsection in each calendar year shall be 6,000 barrels in the aggregate among all brewer's licensed premises making such sales. (c)(1) Nothing in this Code section shall be interpreted to prohibit a brewer from transferring any liquid, regardless of whether such liquid would be deemed to be malt beverages or not, to or from any of the brewer's licensed premises; provided, however, with respect to any malt beverages a brewer produces at one of the brewer's licensed premises and transfers to be sold to individuals pursuant to subsection (b) of this Code section at another of the brewer's licensed premises, the maximum number of barrels of malt beverages permitted to be transferred from one licensed premises of the brewer to another licensed premises of the brewer shall not exceed the number of barrels of malt beverages the brewer produces under brands and brand labels for which the brewer is the sole owner at the licensed premises receiving the transferred malt beverages and the brewer shall file a report with the department every calendar quarter documenting all such transfers in such form as the department shall require.

(2) The transfer limitation on malt beverages provided in paragraph (1) of this subsection shall not apply to malt beverages transferred by a brewer from any of the brewer's licensed premises to a satellite tasting room for sale to individuals pursuant to subsection (b) of this Code section; provided, however, that all such transfers shall be included in the quarterly report required by this subsection.

(d) A brewer may sell malt beverages pursuant to subsection (b) of this Code section on all days and at all times that sales of malt beverages by retailers are lawful within the county or municipality in which the licensed premises of the brewer is located, including, but not limited to, Sundays.

(e) Any brewer engaging in sales of malt beverages pursuant to subsection (b) of this Code section shall remit all state and local sales, use, and excise taxes to the proper tax collecting authority.

(f) 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 Code section.

(g) Upon a violation by a brewer of any provision of this Code section or this title or any rule or regulation promulgated thereunder, the commissioner shall have the power to place conditions or limitations on such brewer's license and to modify or amend such conditions or limitations.

(h) A brewer may operate up to two satellite tasting rooms, which shall be licensed in such manner and subject to such reasonable registration, reporting, and inspection requirements as the commissioner may prescribe by rule and regulation. In addition to making sales of malt beverages pursuant to subsection (b) of this Code section, a satellite tasting room may also hold a retail license for consumption on the premises as otherwise authorized by this title and may purchase alcoholic beverages from licensed wholesalers, manufacturers, and importers in accordance with such retail license. Nothing in this subsection shall be construed to expand distribution privileges or authorize sales to retailers other than through a licensed wholesaler. Nothing in this Code section shall be construed to prohibit the sale or service of other alcoholic beverages at the same location if such sale or service is separately authorized under another provision of law and the appropriate license is held for that location."

SECTION 2.

For purposes of proposing rules and regulations, this Act shall become effective upon its approval by the Governor or upon its becoming law without such approval. For all other purposes, this Act shall become effective on July 1, 2026.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.