Bill Text: GA HB568 | 2011-2012 | Regular Session | Introduced
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
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
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;
(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."
(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.