House subcommittee hears bill to expand county liquor licenses and double tasting events; industry warns on store limits

A House subcommittee heard testimony on a bill to allow some Georgia counties to issue additional retail liquor licenses and to expand permitted on-site tastings, but opponents warned the proposal could unsettle small independent retailers.

Chairman Smith, the bill sponsor, told the subcommittee the measure — introduced as House Bill 210 — would let counties award additional licenses based on a sales-tax threshold and would not “structurally change the three-tiered system.” He said the bill is intended to give more business opportunities in rapidly growing counties and to benefit counties with significant tourism-related tax digests. “This would not structurally change the 3 tiered system,” Chairman Smith said during his opening remarks.

The bill as described by the sponsor would permit a county, per annum, to issue up to seven additional retail liquor licenses in a locality that meets the sales-tax threshold called out in the text. The sponsor also said the proposal would raise the number of allowed tasting events from 52 per year to 104 per year, a change he and other supporters said would help retailers and brand promotion.

A question from a committee member asked for a map showing which counties would meet the sales-tax threshold. The sponsor listed counties the Department of Revenue data identified as meeting the (originally stated) threshold: Fulton, Gwinnett, DeKalb, Cobb, Chatham (Savannah), Muscogee (Columbus), Richmond, Henry and Clayton counties. The sponsor characterized the originally referenced $750,000,000 sales-tax figure as a placeholder for this part of the legislation.

A committee member identified in the hearing as Jeremy said the committee substitute had adjusted the threshold to $200 million in sales tax and that legislative counsel helped craft that figure. “We adjusted that for with the committee sub to 200 million, and it's based on the sales tax,” Jeremy told the panel.

Industry witnesses supported expanding tasting events while opposing changes to the limit on how many retail stores a single company can own. Dave Pratt, speaking for the Georgia Alcohol Dealers Association, said the association is “vehemently opposed” to the portion of the bill that would expand the number of stores a single entity may own. Pratt said the association represents nearly 500 members across the state and that the current system protects small, independent retailers.

Chairman Powell expressed concern about removing a two-store limit and cited out-of-state examples in which large retailers entered markets and undercut smaller operations. “This would be the Costco's, the ... Sam's, the big box stores,” Chairman Powell said. “Once that's broke ... they ran the price of alcohol down to nothing. Took all the business, shut down all the small operations.” He said those dynamics had led to higher prices once small competitors were gone.

Pratt said GADA had no objection to expanding tastings as long as oversight by the Georgia Department of Revenue is maintained and a uniform process is developed where local rules vary. The sponsor and committee members discussed the bill’s intent to protect smaller establishments by using a threshold tied to economic scale rather than a population-only test.

Committee members asked for additional data from states that have changed store-ownership limits and for five-year impact data showing actual market effects. A member requested information showing what happened in other states over five years to inform the subcommittee’s deliberations.

No vote was taken; the meeting was a hearing only. Members said they would circulate committee substitute language and continue negotiating language to address concerns about the two-store limit and other protections for small retailers. The subcommittee adjourned after closing remarks.

Provenance (excerpted from the hearing transcript):

- Topic introduction: "Yes, sir. Thank you. Members of the committee, mister chairman, chairmans, bring to you today house bill 2 10 dealing with alcoholic beverages, retail dealers, and a revision of a few provisions here." (transcript time ~1155.1)

- Topic finish: "No doubt. My mind, mister chairman. Thank you, chairman Smith. I look forward to working with you. And with that, committee will stand adjourned." (transcript time ~2203.56)