HB1466: HB1466 Alcoholic beverages; satellite tasting rooms operated by brewers; provide

26 LC 56 0635 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 to1 exception to three-tier system, transfer of liquids, sales at brewer's licensed premises, taxing,2 regulatory authority, and conditions or limitations, so as to provide for satellite tasting rooms3 operated by brewers; to provide for limitations; to provide for an exception to a transfer4 limitation; to provide for rules and regulations; to provide fo r definitions; to provide for5 related matters; to provide for effective dates; to repeal conf licting laws; and for other6 purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Code Section 3-5-24.1 of the Official Code of Georgia Annotated, relating to exception to10 three-tier system, transfer of liquids, sales at brewer's licensed premises, taxing, regulatory11 authority, and conditions or limitations, is amended as follows:12 "3-5-24.1.13 (a) As used in this Code section, the term:14 (1) 'Common ownership' means the same 100 percent common owner ship interest15 including, but not limited to, ownership of the stock, limited liability company16 H. B. 1466 - 1 - 26 LC 56 0635 membership interest, limited liability partnership interest, ot her entity interest, or17 partnership interest, in whatever form such ownership interest may exist.18 (2) 'Licensed premises' means the physical premises where brew er is licensed by the19 state as a manufacturer of malt beverages as well as any satellite tasting rooms.20 (3) 'Produces' means engaging in the material and essential as pects of the brewing21 process to manufacture malt beverage for human consumption; provided, however, when22 a brewer engages in the brewing process at multiple licensed premises, the malt beverage23 will be deemed to have been produced only at the licensed premi ses where such malt24 beverage first began fermentation through the chemical conversion of fermentable sugars25 into alcohol.26 (4) 'Satellite tasting room' means a separate physical locatio n designated by a brewer,27 under common ownership with the brewer, at which the brewer is authorized under28 subsection (h) of this Code section to make retail sales of malt beverages to individuals29 pursuant to subsection (b) of this Code section.30 (b) A limited exception to the provisions of this title providing a three-tier system for the31 distribution and sale of malt beverages shall exist to the exte nt that the license to32 manufacture malt beverages in this state shall include the righ t to sell malt beverages to33 individuals on the brewer's licensed premises for personal use and not for resale, subject34 to the following terms and conditions:35 (1) The brewer may only make sales of malt beverages to an ind ividual while the36 individual is physically on the brewer's licensed premises where the brewer produces malt37 beverages;38 (2) The brewer may make sales of malt beverages the brewer produces at the brewer's39 licensed premises where the individual is purchasing the malt beverages;40 (3) As long as the brewer and all of the brewer's licensed pre mises are under common41 ownership, the brewer may make sales of malt beverages the brew er produces at any42 licensed premises of the brewer and subsequently transfers in c ompliance with the43 H. B. 1466 - 2 - 26 LC 56 0635 limitations and reporting obligations of subsection (c) of this Code section to the brewer's44 licensed premises for sale where the individual is purchasing the malt beverages;45 (4) The brewer may only make sales of malt beverages for which the brewer is the sole46 owner of the brand and brand label;47 (5) Sales for consumption on the premises are not subject to a daily maximum amount;48 (6) Sales for consumption off the premises shall not exceed a maximum of 288 ounces49 of malt beverages per individual per day; and50 (7) The maximum amount of malt beverages the brewer may sell pursuant to subsection51 (b) of this Code section this subsection in each calendar year shall be 6,000 barrels in the52 aggregate among all brewer's licensed premises making such sales.53 (c)(1) Nothing in this Code section shall be interpreted to prohibit a brewer from54 transferring any liquid, regardless of whether such liquid woul d be deemed to be malt55 beverages or not, to or from any of the brewer's licensed premises; provided, however,56 with respect to any malt beverages a brewer produces at one of the brewer's licensed57 premises and transfers to be sold to individuals pursuant to su bsection (b) of this Code58 section at another of the brewer's licensed premises, the maximum number of barrels of59 malt beverages permitted to be transferred from one licensed premises of the brewer to60 another licensed premises of the brewer shall not exceed the nu mber of barrels of malt61 beverages the brewer produces under brands and brand labels for which the brewer is the62 sole owner at the licensed premises receiving the transferred m alt beverages and the63 brewer shall file a report with the department every calendar q uarter documenting all64 such transfers in such form as the department shall require.65 (2) The transfer limitation on malt beverages provided in paragraph (1) of this subsection66 shall not apply to malt beverages transferred by a brewer from any of the brewer's67 licensed premises to a satellite tasting room for sale to indiv iduals pursuant to68 subsection (b) of this Code section; provided, however, that al l such transfers shall be69 included in the quarterly report required by this subsection.70 H. B. 1466 - 3 - 26 LC 56 0635 (d) A brewer may sell malt beverages pursuant to subsection (b) of this Code section on71 all days and at all times that sales of malt beverages by retai lers are lawful within the72 county or municipality in which the licensed premises of the brewer is located, including,73 but not limited to, Sundays.74 (e) Any brewer engaging in sales of malt beverages pursuant to subsection (b) of this Code75 section shall remit all state and local sales, use, and excise taxes to the proper tax collecting76 authority.77 (f) The commissioner shall promulgate and enforce such rules and regulations as he or she78 may deem reasonable and necessary to effectuate the provisions of this Code section.79 (g) Upon a violation by a brewer of any provision of this Code section or this title or any80 rule or regulation promulgated thereunder, the commissioner shall have the power to place81 conditions or limitations on such brewer's license and to modify or amend such conditions82 or limitations.83 (h) A brewer may operate up to two satellite tasting rooms, which shall be licensed in such84 manner and subject to such reasonable registration, reporting, and inspection requirements85 as the commissioner may prescribe by rule and regulation. In addition to making sales of86 malt beverages pursuant to subsection (b) of this Code section, a satellite tasting room may87 also hold a retail license for consumption on the premises as otherwise authorized by this88 title and may purchase alcoholic beverages from licensed wholesalers, manufacturers, and89 importers in accordance with such retail license. Nothing in th is subsection shall be90 construed to expand distribution privileges or authorize sales to retailers other than through91 a licensed wholesaler. Nothing in this Code section shall be construed to prohibit the sale92 or service of other alcoholic beverages at the same location if such sale or service is93 separately authorized under another provision of law and the appropriate license is held for94 that location."95 H. B. 1466 - 4 - 26 LC 56 0635 SECTION 2.96 For purposes of proposing rules and regulations, this Act shall become effective upon its97 approval by the Governor or upon its becoming law without such approval. For all other98 purposes, this Act shall become effective on July 1, 2026.99 SECTION 3.100 All laws and parts of laws in conflict with this Act are repealed.101 H. B. 1466 - 5 -