The bill amends the Liquor Excise Tax Act to introduce a new six percent liquor excise surtax on retailers selling alcoholic beverages, effective July 1, 2026. The revenue generated from this surtax will be allocated to a newly established Tribal Alcohol Harms Alleviation Fund. Additionally, the bill revises the distribution of the existing liquor excise tax, directing ninety-four percent of the net receipts to the local alcohol harms alleviation fund and six percent to the drug court fund. It also updates definitions within the Act, including the definition of "retailer" and introduces "barrel" as a measurement unit. The bill further clarifies that taxes imposed by the Liquor Excise Tax Act will be excluded from the definition of "gross receipts" in the Gross Receipts and Compensating Tax Act.

Moreover, the bill renames the Local DWI Grant Program Act to the Local Alcohol Harms Alleviation Program Act and establishes a framework for grant distribution to support innovative programs aimed at reducing alcohol and drug abuse harms. It creates a "local alcohol harms alleviation program council" and a "tribal alcohol harms alleviation program," with specific eligibility criteria for counties to receive grants. The bill also establishes a "Tribal Alcohol Harms Alleviation Council" within the Department of Indian Affairs to oversee funding requests and grant approvals. Additionally, it amends laws regarding direct wine shipment permits, requiring permit holders to register for and pay applicable taxes, and appropriates funds for research related to the Tribal Alcohol Harms Alleviation Program Act. The effective date for the provisions of this act is set for July 1, 2025.

Statutes affected:
introduced version: 7-1-6.40, 7-9-3.5, 7-17-2, 7-17-6, 7-17-9, 7-17-10, 7-17-11, 7-17-12, 11-6A-1, 11-6A-2, 11-6A-3, 11-6A-4, 11-6A-5, 11-6A-6, 60-6A-11.1