Retail Report | Alabama Retail Association

Ready-to-Drink Bills on Tap
Bills to allow for the sale of mixed liquor beverages at grocery and convenience stores are being considered by the Alabama Legislature. SB268, by Sen. Bobby Singleton, D-Greensboro, was substituted and amended by the Senate Tourism Committee. The bill defines a new category of “mixed spirit beverages” — single-serve cocktails containing no more than 7% alcohol by volume — and would allow them to be sold outside ABC stores through a newly created licensing structure. The adopted amendment changed the taxation rate on mixed spirit beverages to 3.5 cents per ounce. Similar legislation, HB521, by Rep. Craig Lipscomb R-Gadsden, was substituted and amended by the House Economic Development and Tourism Committee. Both bills can now be considered by the respective chambers.

PBM Bill Signed into Law
On Tuesday, Governor Kay Ivey signed the Community Pharmacy Relief Act into law. The legislation, sponsored by Sen. Billy Beasley, D-Clayton, and Rep. Phillip Rigsby, R-Huntsville, requires pharmacy benefit managers (PBMs) to reimburse independent pharmacies the amount paid by the Alabama Medicaid Agency, which is $10.64 per prescription, in addition to the acquisition cost of the drug. The bill takes effect immediately, with specific provisions for independent pharmacies and PBMs set to begin on October 1, 2025.

Bill Introduced to Exclude Soda from SNAP Benefits
Rep. Mack Butler, R- Rainbow City, has introduced HB579 that would require the Alabama Department of Human Resources to request a waiver from USDA to exclude soda from the Supplemental Nutrition Assistance Program (SNAP). The bill defines soda as a carbonated beverage that contains more than one gram of added sugar or any artificial sweetener. Similar measures have been introduced in other states. If passed, the bill would take effect on October 1, 2025.

Business Tax Determinations May Soon be Appealable to Tax Tribunal
Sen. Clyde Chambliss’s, R-Prattville, legislation to allow businesses to appeal decisions related to business license taxes made by counties and municipalities to the Alabama Tax Tribunal received approval by the House Judiciary Committee.

Additionally, the legislation requires local governments to report key information, such as classifications and schedules for business license taxes, to the Department of Revenue on an annual basis. It outlines the appeals process, allowing taxpayers to appeal without having to prepay taxes and eliminating filing fees. The bill also permits appeals to be filed in the Circuit Court of Montgomery County for those taxpayers who do not have a principal place of business in Alabama.

Propane Filling and Storage Legislation Introduced
On Tuesday, the Senate County and Municipal Government Committee held a public hearing on SB320, sponsored by Sen. April Weaver R-Alabaster. The legislation prohibits permittees of the Alabama Liquefied Petroleum Gas Board from filling or storing LP-Gas cylinders for retail sale within 3,000 feet of a school, church, hospital, athletic field or other place of public gathering. Sen. Weaver introduced the bill following an incident that occurred at AmeriGas in Centreville. ARA has collaborated with the sponsor to draft an amendment clarifying that the bill specifically targets permit holders at bulk facilities filling liquefied petroleum gas cylinders for distribution, rather than affecting the retail sale and exchange of filled propane cylinders. The Committee did not take action on the bill.

Legislation to Regulate Hemp-Derived Products Moves Forward, Changes Likely
HB445, sponsored by Rep. Andy Whitt, R-Ardmore, passed the Senate Fiscal Responsibility and Economic Development Committee on Wednesday. As currently written, the legislation would authorize the Alcohol Beverage Control Board to license and regulate the sale of consumable hemp products and restrict access for those under 21. Lawmakers have indicated that the bill may undergo changes and could potentially merge with similar proposals that have already received Senate committee approval. These related bills include SB132, SB237, SB255, SB273, and SB274.

House Approves Measures to Boost Vape Enforcement
Rep. Barbara Drummond, D- Mobile, has sponsored HB8 to strengthen enforcement of vape products illegally sold to those 21 and under. The bill establishes new fees for the filing and permitting of the distribution of tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products. Additionally, the bills increase penalties for violation of tobacco retail laws. The funds generated will be distributed for enforcement efforts. The bill was amended and adopted by the House.

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