Alcohol Beverages Task Force And Retailer Licenses

The bill creates a task force in the department of revenue to study the regulation of alcohol beverages. The task force is required to review the current statutes regulating alcohol beverages and make recommendations concerning how to modernize, clarify, and harmonize the statutes. The task force is required to report its findings to the general assembly by December 1, 2023.

The bill modifies laws governing the licensure of retail liquor stores and liquor-licensed drugstores and creates the new beer-and-wine-licensed grocery store license. With regard to retail liquor store licenses, the bill:

• Removes the requirement that a new retail liquor store must be located a certain distance from an existing liquor-licensed drugstore;
• Expands the minimum distance between a new retail liquor store and other existing retail liquor stores from 1,500 feet to 3,000 feet;
• Effective January 1, 2024, removes the requirement that only an employee of the retail liquor store may deliver alcohol beverages and instead allows delivery by any person who is authorized by the retail liquor store, subject to specified requirements including that the licensee or the authorized deliverer obtain a delivery permit from the state licensing authority and other requirements specified in state licensing authority rules; and
• Increases the maximum number of retail liquor store licenses that a person may own.

With regard to liquor-licensed drugstore licenses, the bill:

• Prohibits the state and local licensing authorities from issuing new liquor-licensed drugstore licenses after the date the bill takes effect and repeals provisions related to the ability of liquor-licensed drugstore licensees to obtain additional licenses;
• Allows a liquor-licensed drugstore licensed before January 1, 2022, to continue to renew the licensee's license, unless the license has converted to a beer-and-wine-licensed grocery store license;
• On January 1, 2026, converts every liquor-licensed drugstore license in effect on that date to a beer-and-wine-licensed grocery store license, unless the licensee chooses to remain a liquor-licensed drugstore, and eliminates the ability of those licensees that convert to a beer-and-wine-licensed grocery store license to sell spirituous liquors; and
• Effective January 1, 2024, removes the requirement that only an employee of the liquor-licensed drugstore may deliver alcohol beverages and instead allows delivery by any person who is authorized by the liquor-licensed drugstore, subject to specified requirements including that the licensee or the authorized deliverer obtain a delivery permit from the state licensing authority and other requirements specified in state licensing authority rules.

With regard to beer-and-wine-licensed grocery store licenses, the bill:

• Creates the new license, available on or after January 1, 2026, with requirements similar to the requirements applicable to liquor-licensed drugstores, to permit a grocery store that obtains the license to sell beer and wine only;
• Specifies that a beer-and-wine-licensed grocery store cannot be located within 1,500 feet of a retail liquor store;
• Allows a beer-and-wine-licensed grocery store to deliver beer and wine to its customers under the same requirements applicable to retail liquor stores and liquor-licensed drugstores;
• Allows a beer-and-wine grocery store to own multiple stores as follows: On and after January 1, 2026, and before January 1, 2027, a maximum of 8 stores; on and after January 1, 2027, and before January 1, 2032, a maximum of 13 stores; on and after January 1, 2032, and before January 1, 2037, a maximum of 20 stores; and on and after January 1, 2037, an unlimited number of additional stores;
• Allows a licensee licensed as a liquor-licensed drugstore on December 31, 2025, whose license converted to a beer-and-wine-licensed grocery store license on January 1, 2026, to transfer any spirituous liquors in its possession to a licensee authorized to sell spirituous liquors but prohibits the licensee from selling spirituous liquors;
• Permits a beer-and-wine-licensed grocery store to offer tastings on the licensed premises if authorized by the local licensing authority; and
• Defines "grocery store" as an establishment that generates at least 20% of its gross annual income from the sale of food items.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)