H971: Modern Licensure Model for Alcohol Control

• Replaces government-operated ABC stores with a private off-premises spirituous liquor retail permit system available to food businesses, retail businesses, and municipalities in jurisdictions that approve off-premises sales

• Establishes 1,500 base off-premises spirituous liquor permits plus additional permits based on population increases, with a lottery system if demand exceeds supply; caps individual ownership at 30% of available permits per jurisdiction

• Creates Article 14 franchise law protecting spirituous liquor wholesalers from unfair treatment by distilleries regarding territory designations, agreement terminations, pricing, and discrimination

• Eliminates state warehouse operations and local ABC boards, requiring divestiture of spirituous liquor inventory and assets by January 1, 2020; sale proceeds to general funds for school capital expenses

• Changes spirituous liquor excise tax from 30% markup to fixed $28.00 per gallon and shifts regulatory authority from local boards to the ABC Commission for permit issuance and oversight