This section creates an event storage license, says when the board must issue it, and sets rules for who may hold it, how alcohol may be stored and moved, what records must be kept, and what enforcement the board may use.
(a) Upon an eligible applicant’s compliance with this chapter and rules adopted thereunder and payment of the event storage license fee as established in Section 28-3A-21 the board, on and after January 1, 2026, shall issue an event storage license to a person for such period of time not to exceed one year and upon such terms and conditions as the board may prescribe. An event storage license authorizes the licensee to purchase and store alcoholic beverages at one designated location and transfer alcoholic beverages as needed to special event venues where the licensee holds the appropriate special event license under the same Federal Employer Identification Number. (b) Notwithstanding Section 28-3-4, only the holder of one or more of the following special event licenses shall be eligible to make application for and hold an event storage license: (1) A special events retail license. (2) A nonprofit special events retail license. (3) A special retail license for 30 days or less. (4) A government venue license. (c) An event storage license authorizes a licensee to: (1) Store alcoholic beverages, when not at a special event venue, at the storage location; (2) Arrange delivery of alcoholic beverages purchased from the board or a wholesale licensee directly to the licensee’s storage location or directly to a special event license venue; and (3) Transfer alcoholic beverages between the storage location and a special event venue. Alcoholic beverages returned from a special event venue to the storage location may then be transferred to another special event venue, but a licensee may not transfer alcoholic beverages directly from one special event venue to another special event venue without first returning the alcoholic beverages to the storage location. (d)(1) The holder of an event storage license may only purchase beer and table wine from a licensed wholesaler that maintains the appropriate franchise for the brand purchased in the area applicable to the storage location. The holder of an event storage license may only purchase liquor from the board wholesale. (2) The holder of an event storage license may purchase alcoholic beverages under one of the special events licenses listed in subsection (b) which is issued to the holder; provided, the purchase is made only from a vendor permitted under the special events license and that any remaining alcoholic beverages purchased are returned to the storage location. (e) The holder of an event storage license may apply for and hold up to three such licenses, each of which permits one designated storage location, provided: (1) All storage locations are situated at least 100 miles from one another; and (2) Alcoholic beverages may not be transferred between storage locations. (f) The storage location facility must: (1) Be secured at all times with locked access when not in use; (2) Use an access control system to monitor and restrict entry to authorized individuals only; (3) Be temperature controlled as appropriate for the types of alcoholic beverages stored; and (4) Comply with local zoning and building codes. (g) An event storage licensee shall track all alcoholic beverage transfers, on a form prescribed by the board, which shall include, but not be limited to, all of the following information: (1) The name under which the event storage license is issued. (2) The event storage license number. (3) The date of the transfer. (4) The type of alcoholic beverage, the brand name, and the quantity transferred. (5) The destination of the transfer, identified by location, special event license type, and number. (6) If the destination of the transfer is the return of alcoholic beverages from a special event venue to a storage location, the type of alcoholic beverage, the brand, and the quantity returned. (7) A signed certification that the transfer is in compliance with this section and board rules. (h)(1) An event storage licensee shall maintain for a period of three years records of all alcoholic beverages purchased, stored, transferred, and sold in accordance with rules adopted by the board. These records may be maintained in an electronic format so long as the records may be promptly provided in a readable format upon request by the board. (2) All invoices, transfer logs, and other records of an event storage licensee shall be subject to inspection by members of the board or by agents authorized and designated by the board at any time during the normal business hours established by the licensee. (3) Inspection by the board or by agents authorized and designated by the board may: a. Include a search by law enforcement officers with jurisdiction if the circumstances require; and b. Extend to other buildings attached or adjacent to the storage location, including a dwelling. (i)(1) If a discrepancy is discovered during an inspection or audit, the board may issue a compliance warning, require immediate corrective action, or issue a citation. (2) Reoccurring discrepancies discovered by audit or inspection may be considered a violation pursuant to rules adopted by the board. (3) The board may assess a civil fine of no more than one thousand dollars ($1,000) for each occurrence that is a violation of this chapter and may revoke the license. (j) The board shall adopt rules to implement this section.