SB259 Summary

• Defines "mixed spirit beverages" as single-serve, ready-to-drink liquor beverages containing no more than 8 percent alcohol by volume, packaged in containers no larger than 16 ounces.

• Requires mixed spirit beverages to be distributed through licensed wholesalers to retailers, with the Alcoholic Beverage Control Board exempt from this requirement but limited to distributing only to its own liquor stores.

• Levies an excise tax of 68 cents per 12 fluid ounces on mixed spirit beverages, with revenue distributed to the state general fund, the board, law enforcement, and local governments.

• Establishes exclusive franchise agreement requirements between suppliers and wholesalers, including provisions for territory designation, agreement modification, termination, and dispute resolution through arbitration.

• Allows existing beer and wine retailers to obtain limited mixed spirit beverage retail licenses without additional fees, and restricts mixed spirit beverages marketing and sales to liquor stores and lounge/club establishments.