Bill Text: GA HB568 | 2011-2012 | Regular Session | Introduced

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Bill Title: Alcoholic beverages; limited exceptions to three-tier distribution; provide

Spectrum: Moderate Partisan Bill (Republican 5-1)

Status: (Introduced - Dead) 2011-03-22 - House Second Readers [HB568 Detail]

Download: Georgia-2011-HB568-Introduced.html

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11 LC 36 1891

House Bill 568

By: Representatives Stephens of the 164th, Martin of the 47th, Bearden of the 68th, Ehrhart of the 36th, Maddox of the 127th, and others

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 limited exceptions to the three-tier distribution of alcoholic beverages; to provide for definitions; to provide for an annual license fee for a craft brewery; to change certain provisions relating to the limited exception to the three-tier distribution of alcoholic beverages for a brewpub; to require an affidavit of a brewpub licensee under certain circumstances; to provide for the creation of a limited exception to the three-tier distribution of alcoholic beverages for a craft brewery; 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 revising Code Section 3-1-2, relating to definitions, as follows:

"3-1-2.

As used in this title, the term:

(1) 'Alcohol' means ethyl alcohol, hydrated oxide of ethyl, or spirits of wine, from whatever source or by whatever process produced.

(2) 'Alcoholic beverage' means and includes all alcohol, distilled spirits, beer, malt beverage, wine, or fortified wine.

(3) 'Brewpub' means any eating establishment in which beer or malt beverages are manufactured or brewed, subject to the barrel production limitation prescribed in Code Section 3-5-36 for retail consumption on the premises and solely in draft form. As used in this article paragraph, the term 'eating establishment' means an establishment which is licensed to sell distilled spirits, malt beverages, or wines and which derives at least 50 percent of its total annual gross food and beverage sales from the sale of prepared meals or food.

(4) 'Broker' means any person who purchases or obtains an alcoholic beverage from an importer, distillery, brewery, or winery and sells the alcoholic beverage to another broker, importer, or wholesaler without having custody of the alcoholic beverage or maintaining a stock of the alcoholic beverage.

(5) 'Commissioner' means the state revenue commissioner.

(6) 'County or municipality' means those political subdivisions of this state as defined by law and includes any form of political subdivision consolidating a county with one or more municipalities.

(7) 'Craft brewery' means a place where malt beverages are manufactured or brewed, subject to the barrel production limitation prescribed in Code Section 3-5-39, solely for retail sale in unbroken packages on the premises.

(7)(8) 'Department' means the Department of Revenue.

(8)(9) 'Distilled spirits' means any alcoholic beverage obtained by distillation or containing more than 21 percent alcohol by volume, including, but not limited to, all fortified wines.

(9)(10) 'Fortified wine' means any alcoholic beverage containing more than 21 percent alcohol by volume made from fruits, berries, or grapes either by natural fermentation or by natural fermentation with brandy added. The term includes, but is not limited to, brandy.

(10)(11) 'Gallon' or 'wine gallon' means a United States gallon of liquid measure equivalent to the volume of 231 cubic inches or the nearest equivalent metric measurement.

(10.1)(12) 'Hard cider' means an alcoholic beverage obtained by the fermentation of the juice of apples, containing not more than 6 percent alcohol by volume, including, but not limited to, flavored or carbonated cider. For purposes of this title, hard cider shall be deemed a malt beverage. The term does not include 'sweet cider.'

(11)(13) 'Importer' means any person who imports an alcoholic beverage into this state from a foreign country and sells the alcoholic beverage to another importer, broker, or wholesaler and who maintains a stock of the alcoholic beverage.

(12)(14) 'Individual' means a natural person.

(13)(15) 'Malt beverage' means any alcoholic beverage obtained by the fermentation of any infusion or decoction of barley, malt, hops, or any other similar product, or any combination of such products in water, containing not more than 14 percent alcohol by volume and including ale, porter, brown, stout, lager beer, small beer, and strong beer. The term does not include sake, known as Japanese rice wine.

(14)(16) 'Manufacturer' means any maker, producer, or bottler of an alcoholic beverage. The term also means:

(A) In the case of distilled spirits, any person engaged in distilling, rectifying, or blending any distilled spirits;

(B) In the case of malt beverages, any brewer; and

(C) In the case of wine, any vintner.

(15)(17) 'Military reservation' means a duly commissioned post, camp, base, or station of a branch of the armed forces of the United States located on territory within this state which has been ceded to the United States.

(16)(18) 'Package' means a bottle, can, keg, barrel, or other original consumer container.

(17)(19) 'Person' means any individual, firm, partnership, cooperative, nonprofit membership corporation, joint venture, association, company, corporation, agency, syndicate, estate, trust, business trust, receiver, fiduciary, or other group or combination acting as a unit, body politic, or political subdivision, whether public, private, or quasi-public.

(18)(20) 'Retail consumption dealer' means any person who sells distilled spirits for consumption on the premises at retail only to consumers and not for resale.

(19)(21) 'Retailer' or 'retail dealer' means, except as to distilled spirits, any person who sells alcoholic beverages, either in unbroken packages or for consumption on the premises, at retail only to consumers and not for resale. With respect to distilled spirits, the term means any person who sells distilled spirits in unbroken packages at retail only to consumers and not for resale.

(20)(22) 'Shipper' means any person who ships an alcoholic beverage from outside this state.

(21)(23) 'Standard case' means six containers of 1.75 liters, 12 containers of 750 milliliters, 12 containers of one liter, 24 containers of 500 milliliters, 24 containers of 375 milliliters, 48 containers of 200 milliliters, or 120 containers of 50 milliliters.

(22)(24) 'Taxpayer' means any person made liable by law to file a return or to pay tax.

(23)(25) 'Wholesaler' or 'wholesale dealer' means any person who sells alcoholic beverages to other wholesale dealers, to retail dealers, or to retail consumption dealers.

(24)(26) 'Wine' means any alcoholic beverage containing not more than 21 percent alcohol by volume made from fruits, berries, or grapes either by natural fermentation or by natural fermentation with brandy added. The term includes, but is not limited to, all sparkling wines, champagnes, combinations of such beverages, vermouths, special natural wines, rectified wines, and like products. The term does not include cooking wine mixed with salt or other ingredients so as to render it unfit for human consumption as a beverage. A liquid shall first be deemed to be a wine at that point in the manufacturing process when it conforms to the definition of wine contained in this Code section."

SECTION 2.

Said title is further amended by adding a new paragraph to subsection (a) of Code Section 3-5-20, relating to levy and amount of state occupational license tax, to read as follows:

"(7) Upon each craft brewery operator

1000.00"

SECTION 3.

Said title is further amended by revising Code Section 3-5-36, relating to the brewpub exception to the three-tier distribution system, as follows:

"3-5-36.

A limited exception to the provisions of Code Sections 3-5-29 through 3-5-32 providing a three-tier system for the distribution and sale of malt beverages shall exist for owners and operators of brewpubs, subject to the following terms and conditions:

(1) No individual shall be permitted to own or operate a brewpub without first obtaining a proper license from the commissioner in the manner provided in this title, and each brewpub licenseholder shall comply with all other applicable state and local license requirements;

(2) A brewpub license authorizes the holder of such license to:

(A) Manufacture on the licensed premises not more than 5,000 barrels of beer malt beverage in a calendar year solely for retail sale on the premises and solely in draft form;

(B) Operate an eating establishment, as that term is defined in paragraph (3) of Code Section 3-1-2, that shall be the sole retail outlet for such beer malt beverages and may offer for sale any other alcoholic beverages produced by other manufacturers which are authorized for retail sale under this title, including wine, distilled spirits, upon obtaining a retail consumption dealer's license, and wine and malt beverages, provided that such alcoholic beverages are purchased from a licensed wholesaler for consumption on the premises only; and, provided, further, that in addition to draft beer malt beverage manufactured on the premises, each brewpub licensee shall obtain a retailer's license for the same premises and shall offer for sale commercially available canned or bottled malt beverages from licensed wholesalers; and

(C) Notwithstanding any other provision of this paragraph, sell up to a maximum of 500 barrels annually of such beer malt beverages to licensed wholesale dealers for distribution to retailers and retail consumption dealers;

(3) Possession of a brewpub license shall not prevent the holder of such license from obtaining a retail consumption dealer's license or a retailer's license for the same premises;

(4) A brewpub license does shall not authorize the holder of such license to sell alcoholic beverages by the package for consumption off the premises;

(5)(4) A brewpub licensee shall not offer or permit any free sampling of beer malt beverages by its customers on the premises of a brewpub;

(6)(5) The commissioner shall not issue a brewpub license if the brewpub premises are located in a county or municipality in which the sale of alcoholic beverages is prohibited; and

(7)(6) A brewpub licensee shall:

(A) Pay all state and local license fees and excise taxes applicable to individuals licensed by this state as manufacturers, retailers, and, where applicable, wholesalers under this title;

(B) At the request of the commissioner, provide an irrevocable letter of credit or an Irrevocable Standby Financial Guarantee Bond in favor of the State of Georgia in an amount sufficient to guarantee such brewpub licensee's estimated tax liability for the first year of operation; and

(C) Measure beer malt beverages manufactured on the premises and otherwise comply with applicable regulations respecting excise and enforcement tax determination of such beer malt beverages as required by this title; and

(7) A brewpub licensee shall provide an affidavit with each application for renewa1 certifying that the brewpub meets all the requirements of an eating establishment as that term is defined in paragraph (3) of Code Section 3-1-2."

SECTION 4.

Said title is further amended by adding a new Code section to read as follows:

"3-5-39.

A limited exception to the provisions of Code Sections 3-5-29 through 3-5-32 providing a three-tier system for the distribution and sale of malt beverages shall exist for owners and operators of craft breweries, subject to the following terms and conditions:

(1) No individual shall be permitted to own or operate a craft brewery without first obtaining a proper license from the commissioner in the manner provided in this title, and each craft brewery licenseholder shall comply with all other applicable state and local license requirements;

(2) A craft brewery license authorizes the holder of such license to:

(A) Manufacture on the licensed premises not more than 10,000 barrels of malt beverages in a calendar year solely for retail sale in unbroken packages on the premises;

(B) Notwithstanding any other provision of this paragraph, may sell malt beverages manufactured on the licensed premises equal to a maximum of 10,000 barrels annually. Such quantity of malt beverages may be sold at retail in unbroken packages on the premises, to licensed wholesale dealers for distribution, or to a combination of both; and

(C) Upon obtaining a retailer's license for the same premises, offer for sale any wine or malt beverage produced by other manufacturers which are authorized for retail sale under this title, provided that such alcoholic beverages are purchased from a licensed wholesaler for sale in unbroken packages on the premises;

(3) Possession of a craft brewery license shall not prevent the holder of such license from obtaining a retailer's license for the same premises;
(4) A craft brewery license shall not authorize the holder of such license to sell alcoholic beverages for consumption on the premises;

(5) A craft brewery licensee may offer or permit free sampling of malt beverages manufactured by the craft brewery to its customers on the premises in a tasting room that is separate from the location in which sales of unbroken packages occur;

(6) The commissioner shall not issue a craft brewery license if the craft brewery premises are located in a county or municipality in which the sale of alcoholic beverages is prohibited; and

(7) A craft brewery licensee shall:

(A) Pay all state and local license fees and excise taxes applicable to individuals licensed by this state as manufacturers, retailers, and, where applicable, wholesalers under this title;

(B) At the request of the commissioner, provide an irrevocable letter of credit or an Irrevocable Standby Financial Guarantee Bond in favor of the State of Georgia in an amount sufficient to guarantee such craft brewery licensee's estimated tax liability for the first year of operation; and
(C) Measure malt beverages manufactured on the premises and otherwise comply with applicable regulations respecting excise and enforcement tax determination of such malt beverages as required by this title."

SECTION 5.

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