House Bill 581
By: Representatives Hagan of the 156th, Wiedower of the 121st, Cannon of the 172nd, Neal
of the 79th, and Smith of the 18th
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 regulation of the manufacture, distribution, and sale of malt beverages;
to provide for definitions; to authorize manufacturers of malt beverages to sell or donate malt
beverages they produce, subject to certain limitations and conditions; to provide for direct
donation of malt beverages by brewers and brewpubs to certain charitable events; to provide
that sales for consumption off the premises are not subject to a daily maximum; to permit
small brewers to sell a limited quantity of malt beverages at wholesale; to provide for
remittance of excise and use taxes on donated malt beverages; to provide for a short title; to
provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "Georgia Craft Brewery Innovation and
Survival Act."
SECTION 2.
Title 3 of the Official Code of Georgia Annotated, relating to alcoholic beverages, is
amended by adding a new paragraph to Code Section 3-1-2, relating to definitions, to read
as follows:
<ins>"(20.1) 'Small brewer' means a brewer or brewpub whose sales of products to such
brewer's or brewpub's wholesaler licensed under this title, if any, do not exceed 15
percent of such wholesaler's total sales in the prior calendar year."
</ins> SECTION 3.
Said title is further amended by adding a new Code section to read as follows:
<ins>"3-5-6.
(a) As used in this Code section, the term:
(1) 'Charitable event permit holder' means a bona fide nonprofit civic organization that
has been issued a permit pursuant to Code Section 3-9-3 for the sale of alcoholic
beverages for consumption on the premises.
(2) 'Permitted charitable event' means an event for which a permit has been obtained by
a bona fide nonprofit civic organization pursuant to Code Section 3-9-3 authorizing such
organization to sell alcoholic beverages for consumption on the premises.
(b) A brewer or brewpub may directly donate malt beverages it manufactures to a
charitable event permit holder for a permitted charitable event, provided that:
(1) The amount of such donated malt beverages shall not exceed the amount necessary
for the permitted charitable event;
(2) Any donated malt beverages that are not used or consumed during the permitted
charitable event shall be returned to the brewer or brewpub within 24 hours of the event
closure or the expiration of the charitable event permit, whichever is later; and
</ins>
<ins>(3) The donated malt beverages shall be transported to and from the permitted charitable
event by the charitable event permit holder or the brewer or brewpub that made the
donation."
</ins> SECTION 4.
Said title is further amended by revising subsection (b) of Code Section 3-5-24.1, relating to
exception to three-tier system, transfer of liquids, sales at brewer's licensed premises, taxing,
regulatory authority, and conditions or limitations, as follows:
"(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 <del>shall not exceed a maximum of 288 ounces
of malt beverages per individual per day</del> <ins>are not subject to a daily maximum amount;</ins> and
(7) The maximum amount of malt beverages the brewer may sell pursuant to <ins>this
</ins> subsection <del>(b) of this Code section</del> in each calendar year shall be 6,000 barrels in the
aggregate among all brewer's licensed premises making such sales."
SECTION 5.
Said title is further amended by adding a new Code section to read as follows:
<ins>"3-5-24.2.
(a) Notwithstanding the provisions of Code Section 3-5-24.1 and as a limited exception
to the provisions of this title providing a three-tier system for the distribution and sale of
malt beverages, the license to manufacture malt beverages in this state shall include for
small brewers the right to:
(1) Sell per calendar year up to 3,000 barrels of malt beverages produced at the small
brewer's licensed premises at wholesale to retailers licensed in this state that are located
within a 100 mile radius of the small brewer's licensed premises;
(2) Sell, deliver, and ship its malt beverages to other licensed brewers and brewpubs; and
(3) Acquire and receive deliveries and shipments of such malt beverages made by other
licensed brewers and brewpubs.
(b) Any small brewer that sells malt beverages pursuant to this Code section shall utilize
an electronic accounting software that is capable of tracking and remitting state and local
taxes imposed in connection with such sales.
(c) 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."
</ins>
SECTION 6.
Said title is further amended by revising Code Section 3-5-27, relating to malt beverages
acquired by retail dealers from persons other than licensed wholesale dealers declared
contraband, as follows:
"3-5-27.
<ins>Except as otherwise provided in this chapter, any</ins> <del>Any</del> malt beverage possessed, sold, or
offered for sale by a retail dealer which was purchased or otherwise acquired from any
person other than a wholesale dealer authorized to do business under this chapter is
declared to be contraband and shall be seized by the commissioner or the appropriate local
authorities and disposed of by the commissioner in the manner provided in this title."
SECTION 7.
Said title is further amended by revising Code Section 3-5-81, relating to payment of tax by
wholesale dealers generally, time of payment, and reports by dealers as to quantities of
beverages sold, as follows:
"3-5-81.
(a) The excise taxes provided for in this part shall be imposed upon and shall be paid by
the licensed wholesale dealer in malt beverages; provided, however, that such taxes shall
be imposed upon and shall be paid by the licensed brewer <ins>or brewpub</ins> for malt beverages
served or sold by the brewer directly to the public pursuant to Code Section 3-5-24.1 <ins>or
donated by the brewer or brewpub pursuant to Code Section 3-5-6.
</ins> (b) The taxes shall be paid on or before the tenth day of the month following the calendar
month in which the beverages are sold, <ins>donated,</ins> or disposed of within the particular
municipality or county.
(c) Each licensee responsible for the payment of the excise tax shall file a report itemizing
for the preceding calendar month the exact quantities of malt beverages, by size and type
of container, sold <ins>or donated</ins> during the month within each municipality or county. The
licensee shall file the report with each municipality or county wherein the beverages are
sold <ins>or donated</ins> by the licensee.
(d) The licensee shall remit to the municipality or county on the tenth day of the month
following the calendar month in which the sales <ins>or donations</ins> were made the tax imposed
by the municipality or county."
SECTION 8.
All laws and parts of laws in conflict with this Act are repealed.