AL SB115

Phase-Out of State Retail Operations: Alabama Alcoholic Beverage Control Board must cease retail sale of alcoholic beverages and close all state liquor stores by October 1, 2016, while continuing wholesale and licensing functions.

Private Retail Licensing System: Establishes competitive bidding process for retail licenses with preference for displaced employees and current licensees; licenses expire every 10 years beginning in 2026 with annual renewal options.

Phase-Out Fund and Asset Disposal: Creates special fund from sale of state assets and bid payments to cover phase-out costs including employee benefits; Department of Economic and Community Affairs provides technical assistance.

Employee Protections: Implements hiring freeze through October 1, 2016; provides displaced employees with three months additional salary, preference for state positions with five-point exam bonus, and bid preference for retail licenses with 20 percent fee discount.

Tax and Markup Changes: Increases tax on spiritous/vinous liquors from 10% to 14% effective October 1, 2016; establishes inventory bailment system; reallocates proceeds to state departments, counties, and municipalities where state stores previously operated.