AL
Alabama Senate Bill SB315

Alabama 2022 Regular Session

Alabama Senate Bill SB315 Compare Versions

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11 1 SB315
2-2 215660-2
2+2 215660-1
33 3 By Senator Jones
44 4 RFD: Tourism
55 5 First Read: 17-MAR-22
66
7-Page 0 1 SB315
7+Page 0 1 215660-1:n:03/16/2022:LK/tgw 2021-2326
88 2
99 3
10-4 ENGROSSED
10+4
1111 5
1212 6
13-7 A BILL
14-8 TO BE ENTITLED
15-9 AN ACT
16-10
17-11 Relating to alcoholic beverages; to amend Section
18-12 28-3A-20.4, Code of Alabama 1975, to provide that a nonprofit
19-13 organization may apply for and be issued a license to host a
20-14 wine festival; to further provide for the application process
21-15 and conditions of licensure for a license to host or
22-16 participate in a wine festival; and to further provide for the
23-17 collection and remittance of taxes due on sale of wine at a
24-18 wine festival.
25-19 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
26-20 Section 1. Section 28-3A-20.4, Code of Alabama 1975,
27-21 is amended to read as follows:
28-22 "§28-3A-20.4.
29-23 "(a) The Legislature finds and declares that this
30-24 section has been enacted pursuant to the authority granted to
31-25 the state under the Twenty-first Amendment to the United
32-26 States Constitution and the powers reserved to the state under
33-27 the Tenth Amendment to the United States Constitution and the
34-Page 1 1 inherent powers of the state under the Constitution of Alabama
35-2 of 1901. It is the intent of the Legislature that this section
36-3 maintains the current three-tier system of control over the
37-4 sale, distribution, purchase, transportation, manufacture,
38-5 consumption, and possession of alcoholic beverages in the
39-6 state and promotes the health, safety, and welfare of
40-7 residents of this state.
41-8 "(b)(1) Notwithstanding any other section of this
42-9 title, including, but not limited to, Sections 28-3A-6,
43-10 28-3A-25, and 28-7-4, upon application made on a form provided
44-11 by the board at least 25 days in advance of the event for
45-12 which a license is sought and accompanied by a fee not to
46-13 exceed fifty dollars ($50), the board shall issue a license
47-14 for a wine festival to a manufacturer of wine licensed by the
48-15 board manufacturing at least 500 gallons of table wine in this
49-16 state annually; a retailer; an organization comprised entirely
50-17 of grape growers, wineries, or grape growers and wineries; a
51-18 municipality; a county; or an incorporated arts council, main
52-19 street program, 501(c) organization, other nonprofit
53-20 organization as that term is defined by rule of the board, or
54-21 downtown development entity upon such terms and conditions as
55-22 the board may prescribe by rule.
56-23 "(2) The wine festival license shall authorize the
57-24 licensee to host a festival at which wine festival participant
58-25 licensees may dispense tastings and sell at retail to
59-26 individuals physically present at the festival for on-premises
60-Page 2 1 or off-premises consumption and for personal use and not for
61-2 resale, subject to subsection (e).
62-3 "(3) If the applicant for a wine festival license is
63-4 already a licensee of the board at the time of application,
64-5 the board may not require any additional bond for the wine
65-6 festival licensure and may not require an in-person
66-7 appointment as part of the application process, and the
67-8 application shall only require submission of all of the
68-9 following information:
69-10 "a. The name and address of the applicant, and photo
70-11 identification.
71-12 "b. The start and end date of the festival.
72-13 "c. A description of the wine festival location. If
73-14 the applicant does not own or control the wine festival
74-15 location, then the applicant shall include written permission
75-16 by the person with ownership or control over the property for
76-17 the wine festival licensee and any wine festival participant
77-18 licensees to use the property for that wine festival.
78-19 "(4) If, at the time of application for a wine
79-20 festival license, the applicant possesses a liquor liability
80-21 insurance policy that would cover the activities to be
81-22 performed by that applicant and wine festival participant
82-23 licensees at that wine festival, then the applicant and any
83-24 applicants for a wine festival participant license who would
84-25 be covered by the insurance policy shall not be required to
85-26 purchase any additional liquor liability insurance for the
86-27 festival licensure.
87-Page 3 1 "(c) A wine festival licensed under this section may
88-2 not operate for more than five consecutive days.
89-3 "(d)(1) Upon application made on a form provided by
90-4 the board at least 15 days in advance of the event for which a
91-5 license is sought and accompanied by a fee not to exceed
92-6 fifteen dollars ($15), the board shall issue a wine festival
93-7 participant license to any retailer or any manufacturer of
94-8 table wine licensed by the board that manufactures at least
95-9 500 gallons of table wine in this state annually.
96-10 "(2) A wine festival participant license shall
97-11 authorize the licensee to dispense tastings and sell at retail
98-12 to individuals physically present at the festival for
99-13 on-premises consumption or off-premises consumption and for
100-14 personal use and not for resale, subject to subsection (e).
101-15 "(3) If the applicant for a wine festival
102-16 participant license is already a licensee of the board at the
103-17 time of application, the board may not require any additional
104-18 bond for the wine festival participant licensure and may not
105-19 require an in-person appointment as part of the application
106-20 process, and the application shall only require submission of
107-21 all of the following information:
108-22 "a. The name and address of the applicant, and photo
109-23 identification.
110-24 "b. The start and end date of the festival.
111-25 "c. A description of the wine festival location.
112-26 "(4) If, at the time of application for a wine
113-27 festival participant license, the applicant possesses a liquor
114-Page 4 1 liability insurance policy that would cover the activities to
115-2 be performed by that applicant at that wine festival, then the
116-3 applicant shall not be required to purchase any additional
117-4 liquor liability insurance for the festival licensure.
118-5 "(e)(1) Wine sold at a wine festival for
119-6 off-premises consumption shall only be sold by a wine festival
120-7 participant licensee and shall be sealed, labeled, and
121-8 packaged in accordance with local, state, and federal laws and
122-9 regulations.
123-10 "(2) A wine festival participant licensee may not
124-11 sell more than one case of wine to any individual per
125-12 festival.
126-13 "(3) For purposes of this section, one case of wine
127-14 means the equivalent of 12 750-milliliter bottles of wine.
128-15 "(f) The sale of wine at any wine festival may not
129-16 be permitted on any Sunday in a county or municipality that
130-17 has not authorized alcoholic beverages to be sold on Sunday.
131-18 "(g) If a wine festival is to take place entirely on
132-19 the premises of the winery that was granted the license to
133-20 host the wine festival or a winery that is a member of the
134-21 organization granted the license to host the festival, the
135-22 board may not require any fee for the wine festival license or
136-23 any wine festival participant license relating to that
137-24 festival.
138-25 "(h)(1) Each wine festival participant licensee
139-26 participating in a wine festival shall collect and remit all
140-27 state and local sales and use taxes and all state excise and
141-Page 5 1 other taxes due on the sale of wine by the licensee to
142-2 customers at retail.
143-3 "(2) Notwithstanding subdivision (1), a wine
144-4 festival participant licensee that already is a licensee of
145-5 the board at the time of application for the wine festival
146-6 participant license, in a method and manner established by the
147-7 Department of Revenue, shall include the collection and
148-8 remittance of all state taxes due on the sale of wine at the
149-9 festival in the same method and manner as other sale of wine
150-10 at retail.
151-11 "(3) Each wine festival participant licensee may
152-12 collect all the county and local sales and use taxes and
153-13 excise and other taxes due on the sale of wine at the festival
154-14 and remit those taxes to the wine festival licensee, in a
155-15 manner and method established by the wine festival licensee.
156-16 The wine festival licensee shall then remit the county and
157-17 local sales and use taxes and excise and other taxes to the
158-18 appropriate local body within seven days following the
159-19 conclusion of the wine festival, whether or not the wine
160-20 festival licensee is exempt from sales tax by law.
161-21 "(4)a. A wine festival licensee shall register with
162-22 the county governing body and, if applicable, municipal
163-23 governing body, no less than seven days prior to the wine
164-24 festival. This registration shall include any information
165-25 necessary to ensure that the proper sales tax is collected and
166-26 remitted from all sales by each wine festival participant,
167-27 including, but not limited to, a list of all wine festival
168-Page 6 1 participant licensees for that wine festival and contact
169-2 information for each licensee.
170-3 "b. The wine festival licensee shall collect county
171-4 and local sales and use taxes for sales made by all wine
172-5 festival participant licensees at a wine festival which have
173-6 elected to remit taxes through the wine festival licensee
174-7 pursuant to subdivision (3), whether or not that wine festival
175-8 licensee is exempt from sales tax by law. The wine festival
176-9 licensee shall then remit the sales and use taxes as provided
177-10 in subdivision (3).
178-11 "c. Each wine festival licensee and wine festival
179-12 participant licensee shall be subject to audit by the county
180-13 and municipal governing body of the location at which the wine
181-14 festival occurs for the county and local sales tax remitted by
182-15 or on behalf of that licensee, and shall be responsible for
183-16 any unreported sales or unremitted sales tax, including
184-17 unreported or unremitted sales tax related to the failure of
185-18 that licensee to fully remit and record any sale during the
186-19 wine festival. Failure to remit sales tax pursuant to this act
187-20 shall be enforced pursuant to Chapter 23 of Title 40.
188-21 "(i) The board may not limit or prohibit the serving
189-22 or featuring of food at a licensed wine festival, provided
190-23 that the person serving or featuring food complies with all
191-24 applicable laws and rules.
192-25 "(j) A wine festival participant licensee shall not
193-26 be required to apply for and purchase any county or municipal
194-27 business license or alcoholic beverage licensure fee in order
195-Page 7 1 to participate in a wine festival pursuant to this section;
196-2 provided, that the wine festival licensee for that wine
197-3 festival is in compliance with paragraph (h)(4)a..
198-4 "(j) (k) For purposes of this section, "retailer"
199-5 means a retailer licensed for off-premises consumption of
200-6 table wine.
201-7 "(k) (l) The board may adopt rules to implement this
202-8 section, including, but not limited to, rules regarding the
203-9 liability of a wine festival participant licensee.
204-10 "(l) (m) If any provision of this section or its
205-11 application to any person or circumstance is determined by a
206-12 court to be invalid or unconstitutional, that provision shall
207-13 be stricken and the remaining provisions shall be construed in
208-14 accordance with the intent of the Legislature to further
209-15 limit, rather than expand, commerce in alcoholic beverages,
210-16 including by prohibiting any commerce in alcoholic beverages
211-17 not expressly authorized, and to enhance strict regulatory
212-18 control over taxation, distribution, and sale of alcoholic
213-19 beverages through the existing uniform system of regulation of
214-20 alcoholic beverages."
215-21 Section 2. This act shall become effective on the
216-22 first day of the third month following its passage and
217-23 approval by the Governor, or its otherwise becoming law.
218-Page 8 1
219-2
220-3 Senate
221-Read for the first time and referred to the Senate4
222-committee on Tourism..............................5 1.7-MAR-22
223- 6
224-Read for the second time and placed on the calen-7
225-dar 1 amendment..................................8 3.0-MAR-22
226- 9
227-Read for the third time and passed as amended ....10 0.5-APR-22
13+7
14+8 SYNOPSIS: Under existing law, certain entities may
15+9 apply for and be issued a license to host a wine
16+10 festival at which wine festival participant
17+11 licensees may dispense tastings and sell at retail
18+12 to individuals physically present at the festival
19+13 for on-premises or off-premises consumption and for
20+14 personal use and not for resale.
21+15 This bill would allow a nonprofit
22+16 organization to apply for a license to host a wine
23+17 festival.
24+18 This bill would revise the criteria for an
25+19 application to host a wine festival or participate
26+20 in a wine festival for any applicant that is
27+21 already a licensee of the board at the time of that
28+22 application.
29+23 This bill would exempt applicants for a wine
30+24 festival license or wine festival participant
31+25 license from charges and fees for that licensure.
32+26 This bill would provide that any wine
33+27 festival or wine festival participant licensee
34+Page 1 1 shall collect and remit taxes due on retail sales
35+2 at a wine festival in the same method and manner as
36+3 other retail sales by that licensee, and that
37+4 county and local taxes shall be collected and
38+5 remitted to the appropriate local body by the wine
39+6 festival licensee.
40+7 This bill would also provide for an
41+8 exemption from application fees, filing fees, and
42+9 any other administrative fees for applicant for a
43+10 wine festival or wine festival participant license.
22844 11
229-12 Patrick Harris,
230-13 Secretary.
231-14
232-Page 9
45+12 A BILL
46+13 TO BE ENTITLED
47+14 AN ACT
48+15
49+16 Relating to alcoholic beverages; to amend Section
50+17 28-3A-20.4, Code of Alabama 1975, to provide that a nonprofit
51+18 organization may apply for and be issued a license to host a
52+19 wine festival; to further provide for the application process
53+20 and conditions of licensure for a license to host or
54+21 participate in a wine festival; and to further provide for the
55+22 collection and remittance of taxes due on sale of wine at a
56+23 wine festival.
57+24 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
58+25 Section 1. Section 28-3A-20.4, Code of Alabama 1975,
59+26 is amended to read as follows:
60+27 "§28-3A-20.4.
61+Page 2 1 "(a) The Legislature finds and declares that this
62+2 section has been enacted pursuant to the authority granted to
63+3 the state under the Twenty-first Amendment to the United
64+4 States Constitution and the powers reserved to the state under
65+5 the Tenth Amendment to the United States Constitution and the
66+6 inherent powers of the state under the Constitution of Alabama
67+7 of 1901. It is the intent of the Legislature that this section
68+8 maintains the current three-tier system of control over the
69+9 sale, distribution, purchase, transportation, manufacture,
70+10 consumption, and possession of alcoholic beverages in the
71+11 state and promotes the health, safety, and welfare of
72+12 residents of this state.
73+13 "(b)(1) Notwithstanding any other section of this
74+14 title, including, but not limited to, Sections 28-3A-6,
75+15 28-3A-25, and 28-7-4, upon application made on a form provided
76+16 by the board at least 25 days in advance of the event for
77+17 which a license is sought and accompanied by a fee not to
78+18 exceed fifty dollars ($50), the board shall issue a license
79+19 for a wine festival to a manufacturer of wine licensed by the
80+20 board manufacturing at least 500 gallons of table wine in this
81+21 state annually; a retailer; an organization comprised entirely
82+22 of grape growers, wineries, or grape growers and wineries; a
83+23 municipality; a county; or an incorporated arts council, main
84+24 street program, 501(c) organization, other nonprofit
85+25 organization as that term is defined by rule of the board, or
86+26 downtown development entity upon such terms and conditions as
87+27 the board may prescribe by rule.
88+Page 3 1 "(2) The wine festival license shall authorize the
89+2 licensee to host a festival at which wine festival participant
90+3 licensees may dispense tastings and sell at retail to
91+4 individuals physically present at the festival for on-premises
92+5 or off-premises consumption and for personal use and not for
93+6 resale, subject to subsection (e).
94+7 "(3) If the applicant for a wine festival license is
95+8 already a licensee of the board at the time of application,
96+9 the board may not require any additional bond for the wine
97+10 festival licensure and may not require an in-person
98+11 appointment as part of the application process, and the
99+12 application shall only require submission of all of the
100+13 following information:
101+14 "a. The name and address of the applicant, and photo
102+15 identification.
103+16 "b. The start and end date of the festival.
104+17 "c. A description of the wine festival location. If
105+18 the applicant does not own or control the wine festival
106+19 location, then the applicant shall include written permission
107+20 by the person with ownership or control over the property for
108+21 the wine festival licensee and any wine festival participant
109+22 licensees to use the property for that wine festival.
110+23 "(4) If, at the time of application for a wine
111+24 festival license, the applicant possesses a liquor liability
112+25 insurance policy that would cover the activities to be
113+26 performed by that applicant and wine festival participant
114+27 licensees at that wine festival, then the applicant and any
115+Page 4 1 applicants for a wine festival participant license who would
116+2 be covered by the insurance policy shall not be required to
117+3 purchase any additional liquor liability insurance for the
118+4 festival licensure.
119+5 "(c) A wine festival licensed under this section may
120+6 not operate for more than five consecutive days.
121+7 "(d)(1) Upon application made on a form provided by
122+8 the board at least 15 days in advance of the event for which a
123+9 license is sought and accompanied by a fee not to exceed
124+10 fifteen dollars ($15), the board shall issue a wine festival
125+11 participant license to any retailer or any manufacturer of
126+12 table wine licensed by the board that manufactures at least
127+13 500 gallons of table wine in this state annually.
128+14 "(2) A wine festival participant license shall
129+15 authorize the licensee to dispense tastings and sell at retail
130+16 to individuals physically present at the festival for
131+17 on-premises consumption or off-premises consumption and for
132+18 personal use and not for resale, subject to subsection (e).
133+19 "(3) If the applicant for a wine festival
134+20 participant license is already a licensee of the board at the
135+21 time of application, the board may not require any additional
136+22 bond for the wine festival participant licensure and may not
137+23 require an in-person appointment as part of the application
138+24 process, and the application shall only require submission of
139+25 all of the following information:
140+26 "a. The name and address of the applicant, and photo
141+27 identification.
142+Page 5 1 "b. The start and end date of the festival.
143+2 "c. A description of the wine festival location.
144+3 "(4) If, at the time of application for a wine
145+4 festival participant license, the applicant possesses a liquor
146+5 liability insurance policy that would cover the activities to
147+6 be performed by that applicant at that wine festival, then the
148+7 applicant shall not be required to purchase any additional
149+8 liquor liability insurance for the festival licensure.
150+9 "(e)(1) Wine sold at a wine festival for
151+10 off-premises consumption shall only be sold by a wine festival
152+11 participant licensee and shall be sealed, labeled, and
153+12 packaged in accordance with local, state, and federal laws and
154+13 regulations.
155+14 "(2) A wine festival participant licensee may not
156+15 sell more than one case of wine to any individual per
157+16 festival.
158+17 "(3) For purposes of this section, one case of wine
159+18 means the equivalent of 12 750-milliliter bottles of wine.
160+19 "(f) The sale of wine at any wine festival may not
161+20 be permitted on any Sunday in a county or municipality that
162+21 has not authorized alcoholic beverages to be sold on Sunday.
163+22 "(g) If Regardless of whether a wine festival is to
164+23 take place entirely on the premises of the winery that was
165+24 granted the license to host the wine festival or a winery that
166+25 is a member of the organization granted the license to host
167+26 the festival, the board may not require any fee for the an
168+27 applicant for a wine festival license or any wine festival
169+Page 6 1 participant license relating to that festival shall not be
170+2 required to pay any fee for that licensure, including, but not
171+3 limited to, any filing fee or other administrative fee, or any
172+4 fee levied or imposed pursuant to Section 28-3A-4.
173+5 "(h)(1) Each wine festival participant licensee
174+6 participating in a wine festival shall collect and remit all
175+7 state and local sales and use taxes and all state excise and
176+8 other taxes due on the sale of wine by the licensee to
177+9 customers at retail.
178+10 "(2) Notwithstanding subdivision (1), a wine
179+11 festival participant licensee that already is a licensee of
180+12 the board at the time of application for the wine festival
181+13 participant license, in a method and manner established by the
182+14 Department of Revenue, shall include the collection and
183+15 remittance of all state taxes due on the sale of wine at the
184+16 festival in the same method and manner as other sale of wine
185+17 at retail.
186+18 "(3) Each wine festival participant licensee shall
187+19 collect all the county and local sales and use taxes and
188+20 excise and other taxes due on the sale of wine at the festival
189+21 and shall remit those taxes to the wine festival licensee, in
190+22 a manner and method established by the wine festival licensee.
191+23 The wine festival licensee shall then remit the county and
192+24 local sales and use taxes and excise and other taxes to the
193+25 appropriate local body.
194+26 "(i) The board may not limit or prohibit the serving
195+27 or featuring of food at a licensed wine festival, provided
196+Page 7 1 that the person serving or featuring food complies with all
197+2 applicable laws and rules.
198+3 "(j) A wine festival participant licensee shall not
199+4 be required to apply for and purchase any county or municipal
200+5 business license or alcoholic beverage licensure fee in order
201+6 to participate in a wine festival pursuant to this section.
202+7 "(j) (k) For purposes of this section, "retailer"
203+8 means a retailer licensed for off-premises consumption of
204+9 table wine.
205+10 "(k) (l) The board may adopt rules to implement this
206+11 section, including, but not limited to, rules regarding the
207+12 liability of a wine festival participant licensee.
208+13 "(l) (m) If any provision of this section or its
209+14 application to any person or circumstance is determined by a
210+15 court to be invalid or unconstitutional, that provision shall
211+16 be stricken and the remaining provisions shall be construed in
212+17 accordance with the intent of the Legislature to further
213+18 limit, rather than expand, commerce in alcoholic beverages,
214+19 including by prohibiting any commerce in alcoholic beverages
215+20 not expressly authorized, and to enhance strict regulatory
216+21 control over taxation, distribution, and sale of alcoholic
217+22 beverages through the existing uniform system of regulation of
218+23 alcoholic beverages."
219+24 Section 2. This act shall become effective on the
220+25 first day of the third month following its passage and
221+26 approval by the Governor, or its otherwise becoming law.
222+Page 8