AB 121

This bill makes changes to treat powdered alcohol as an intoxicating liquor,

which as currently defined includes beverages in the form of wine and distilled

spirits.

Current law generally prohibits a person from manufacturing, distributing, or

selling alcohol beverages, including intoxicating liquor, without the appropriate

license or permit. Current law imposes numerous requirements related to the

manufacture and sale of intoxicating liquor in this state. Current law also imposes

an occupational tax on intoxicating liquor manufactured in or brought into this state.

This bill modifies the definition of “intoxicating liquor” to include, with limited

exceptions, any substance that is sold in powder or crystalline form, that contains

more than 0.4 percent alcohol by weight, and that is fit for human consumption either

in its powder or crystalline form or after it is added to food or mixed with water or

another liquid (powdered alcohol). As a result, under the bill, powdered alcohol may

be sold to consumers only by licensed retailers, may be manufactured in this state

only by persons holding a manufacturer's permit issued by the Department of

Revenue, may be distributed in this state only by persons holding a wholesaler's

permit issued by DOR, and may be shipped from another state into this state only

by persons who are the product's primary source of supply and hold an out-of-state

shipper's permit issued by DOR. The bill includes exceptions for powdered alcohol

used for certain purposes, including powdered alcohol used by hospitals or for

scientific research or other medicinal, pharmaceutical, industrial, or nonbeverage

purposes.

The bill also imposes the same occupational tax on powdered alcohol that

applies to other forms of intoxicating liquor. For powdered alcohol, this tax is

calculated on the volume of the product that results after it has been mixed according

to the package instructions.